Return to Transcripts main page
CNN Newsroom
CNN International: Soon: Netanyahu To Address U.S. Senate Republicans; IDF Pressing Ahead With Raid On Al-Shifa Hospital; RSF Militia Group In Sudan Forces Men And Boys To "Enlist Or Die". Aired 11a-12p ET
Aired March 20, 2024 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
(COMMERCIAL BREAK)
RAHEL SOLOMON, HOST, "CNN NEWSROOM": Good morning or good evening, depending on where you're watching. I'm Rahel Solomon live in New York.
Israel's raid on Gaza's s largest hospital enters its third day with thousands of Palestinians still sheltering in the complex. As efforts continue to negotiate a ceasefire, U.S. Secretary of State Antony Blinken plans to visit Israel later this week. Happening now on Capitol Hill, House Republicans are holding another hearing as part of their impeachment inquiry into President Biden. We are live in Washington with the very latest. Plus, also happening in Washington, all eyes on the Federal Reserve as it prepares to announce a decision on interest rates in a few short hours. Coming up, I'm going to discuss what to expect with Mark Zandi. He is the Chief Economist for Moody's.
Well, U.S. Secretary of State Antony Blinken has just landed in Saudi Arabia. He is beginning yet another regional push for humanitarian ceasefire in Gaza. He will also visit Egypt this trip, as well as Israel. The State Department says that he will advance efforts to broker an "immediate ceasefire," that includes the release of all hostages still held by Hamas. Now, as diplomats talk, the death toll in Gaza keeps climbing higher. The Health Ministry says that more than 100 people have been killed over the last 24 hours, including 15 in this refugee camp. Residents say that Israel bombed a residential building, leaving women and children among the dead.
Now, Israel is under intense pressure to allow more humanitarian aid into Gaza as warnings escalate about imminent famine. It says that 248 humanitarian aid trucks entered Gaza Tuesday, but just nine made it to the north where starvation is especially dire. Israel says that its assault on Al-Shifa Hospital in Gaza City is continuing for the third day, says that it has killed 90 "terrorists" in the area so far. And witnesses are describing a horrific situation for the thousands of civilians sheltering at the complex, as well as those who live nearby. Our Nada Bashir has that story, and we'll bring it to you just as soon as we can. In the meantime, we are also following another story. Israeli Prime
Minister Benjamin Netanyahu will soon address U.S. senators via video link, but only the Republicans. They have rallied around him after a powerful Democratic Senator, Majority Leader Chuck Schumer, called for new elections in Israel. Now, Schumer is the highest ranking elected Jewish official in American history. He said that Mr. Netanyahu was -- has lost his way and is an obstacle to peace.
Let's get more now from CNN's Sunlen Serfaty, who is live on Capitol Hill. Sunlen, so talk to us about what you're hearing from Republicans about expectations for this address, and also Democrats about being excluded.
SUNLEN SERFATY, CNN WASHINGTON CORRESPONDENT: That's right, Rahel. This address certainly comes at an interesting moment up here on Capitol Hill, and it is an address that is reserved exclusively right now for Senate Republicans. Now, the Prime Minister will be meeting virtually, beginning a video address behind closed doors with Senate Republicans up here on Capitol Hill. This is a weekly luncheon that Senate Republicans usually have. It's usually just them in the room. So, it's not necessarily excluding Democrats.
But, it should be noted that the Prime Minister is also not addressing Democrats. And this comes just one week in the wake of Senator Schumer's massive speech that he gave on the Senate floor last week, as your referenced, where he called for new elections. And that did not go over well up here on Capitol Hill with Senate Republicans. Many were angered by that address on the floor that Schumer gave. Senator Barrasso calling it deeply offensive. And notably, Senator Barrasso is a Republican Senator that invited Netanyahu to speak on Capitol Hill or virtually on Capitol Hill today.
Now, Rahel, the meeting will take place in just a few hours. And we've seen Republican senators kind of scurrying about, getting ready for that meeting with this leader today. So, certainly, we'll be reporting on every nugget that comes out after Republican leave that lunch and that address by the Prime Minister.
SOLOMON: OK. Sunlen Serfaty live for us in Washington. Sunlen, thank you.
SERFATY: Thanks.
SOLOMON: More now from our Nada Bashir on the situation in Gaza. We do want to warn you that her report contains some very disturbing scenes.
(BEGIN VIDEOTAPE)
NADA BASHIR, CNN REPORTER (voice-over): I only left to find flour, to find food, this woman screams. Where are they? Her husband, children and other relatives are nowhere to be found. Their home destroyed in an Israeli airstrike while she was gone. Moments later, her nephew is pulled from the rubble. But, he is barely clinging on to life.
[11:05:00] In central Gaza, as bombs continue to rain down, so do these foreboding leaflets, a warning from the Israeli military for civilians to flee southwards, directed at those living in the al-Rimal neighborhood, and the thousands currently sheltering in the nearby A- Shifa Hospital complex. This was the scene at the beleaguered medical complex on Monday, the alarming sound of artillery fire echoing through the early hours of the morning. Nobody has been able to reach those injured or killed at Al-Shifa, this eye witness says, filming discreetly. Some 3,000 people are believed to have been sheltering in and around the hospital when the raid began, according to the Palestinian Health Ministry.
Israeli military vehicles seen here in video filmed by a doctor in the hospital have surrounded the complex for days. On Tuesday, one civilian trapped inside sent CNN this audio recording. The hospital is still under bombardment. There has been heavy shelling and live fire, Lemiya (ph) says. One man was just looking out of the window on the second floor when he was hit by a sniper and killed.
The Israeli military says it is conducting what it has described as a precise military operation targeting senior Hamas militants operating within the hospital complex. Israeli military spokesman Daniel Hagari accused Hamas on Monday of using the hospital as a command center. It is the very same claim made by the IDF ahead of its raid on Al-Shifa back in November. On Monday, the IDF released this video showing a safe full of cash, an envelope with Hamas and Islamic Jihad insignia, and a series of weapons presented as evidence to justify its raid on the hospital. But, much like the IDF raid in November, little other evidence was provided to prove the presence of a Hamas command center at the Al-Shifa Hospital.
Hamas' military wing, meanwhile, has acknowledged that its fighters have been engaged in fierce clashes with Israeli troops in the area surrounding the hospital, adding that Gaza's Civil Police Chief Fayek Al-Mabhouh who led the coordination of food and aid deliveries to the strip was killed during the raid. In a statement, the IDF said Wednesday that approximately 90 "terrorists" were killed, including Al-Mabhouh. The IDF also maintained that no harm had been inflicted on civilians or medical staff in the hospital.
But, testimonies from Palestinians inside Al-Shifa tell a very different story. We were informed by the Israelis that anyone moving within the hospital or around the hospital complex would be targeted by snipers, this medical student says. We can't leave the building to treat those injured outside. Some families are tempted to leave, but they were targeted and killed.
Those who have been able to leave central Gaza are now forced to make the uncertain journey south with no guarantee of protection, or survival. Stripped to their underwear and barefoot, these young boys say they are thankful just to have escaped with their lives. Recounting their harrowing experience, they say they were met with Israeli tanks and forced into an open square where they were interrogated and ordered to undress. Other men around them, they say, were killed. Many evacuees have been badly wounded. Limp, bloodied bodies are carried by cart. But, there is little care available in the south anymore. And there is no telling whether these men like so many others will survive.
Nada Bashir, CNN, London.
(END VIDEOTAPE)
SOLOMON: And as the desperate humanitarian situation in Gaza has the world's attention, aid groups warn that Sudan is on the brink of famine already and adding to an already volatile situation, and now a brutal recruitment tactic is being used in the Sudanese Civil War. An exclusive CNN investigation has found that the powerful Rapid Support Forces, or RSF, a paramilitary group, is using food as a weapon and giving civilians a deadly ultimatum.
Nima Elbagir has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE (Interpreted): The heroes are everywhere in Al Jazira.
NIMA ELBAGIR, CNN CHIEF INTERNATIONAL INVESTIGATIVE CORRESPONDENT (voice-over): A propaganda video from the paramilitary Rapid Support Forces, the RSF.
UNIDENTIFIED MALE: (Foreign Language).
[11:10:00]
ELBAGIR (voice-over): For much of the last year, they have slashed and burned their way through the country. This video shows them triumphant and entrenched in the very heart of Sudan, Al Jazira state.
UNIDENTIFIED MALE: (Foreign Language).
UNIDENTIFIED MALE: (Foreign Language).
ELBAGIR (voice-over): And they are recruiting local men in hundreds.
UNIDENTIFIED MALE: (Foreign Language).
UNIDENTIFIED MALE: (Foreign Language).
ELBAGIR (voice-over): But, it's impossible to tell who here is a willing soldier and who has been forcibly conscripted. Eye witnesses have told CNN that RSF soldiers are giving civilians an ultimatum, "enlist or starve." Our investigation shows how almost 700 men and 65 children have been forcibly recruited to swell RSF ranks. And that's just what we've been able to verify in Jazira. Across Sudan, reports and images like this one, children in RSF uniform, as across Sudan, millions forced from their homes by violence now face famine.
CNN spoke to three dozen eyewitnesses, survivors and the families of victims. The RSF, they say, is weaponizing hunger, denying food to those who won't join. Aid groups say almost four million children in Sudan are already malnourished, as the country faces mass starvation. If aid agencies can't get food to those in need, almost a quarter of a million children could die. Jazira is Sudan's breadbasket, its heartland. To control this part of Sudan is to exert control over who lives and who dies.
The RSF deny they're responsible for the hunger gripping the country. Yet, they control every aspect of farming this land. They control the warehouses of food and aid meant to support the most vulnerable. They control the seed supplies, fertilizer, pesticides, agricultural machinery and irrigation channels. And it's not just the infrastructure, farmers are being targeted, brutalized, degraded, and even killed, not just to control food, but to force allegiance.
You hear shots on camera as six of the men are executed, according to survivors who spoke to CNN. Those who were spared say the RSF threatened to starve their families if they didn't join. The RSF sits in the heart of Sudan, hoarding food meant for millions. From here, they can wait out, starve out Sudan's people and its army. Fear, uncertainty, despair, cascade as the months of war drag on and the world looks away.
ELBAGIR: The RSF did not respond to CNN's requests for comment. We shared our findings with the UN Special Rapporteur for contemporary slavery, who says that the evidence we uncovered, the evidence you saw there, a forced enlistment is tantamount to contemporary slavery.
Nima Elbagir, CNN, New York.
(END VIDEOTAPE)
SOLOMON: Our thanks to Nima.
Well, House Republicans are holding another impeachment inquiry into President Biden, and Hunter Biden isn't there, but we'll tell you who will be there as a witness. We'll be right back.
(COMMERCIAL BREAK)
[11:15:00]
(COMMERCIAL BREAK)
SOLOMON: Welcome back. And this just in, the New York Attorney General's Office says that an appeals court should ignore Donald Trump's claim that he cannot come up with a $464 million bond in his civil fraud case. The office argues that Trump should try to get multiple insurance companies to pool their resources to underwrite their bond. They also criticized Trump's insurance broker and a top attorney at the Trump Organization, saying that their sworn statements in the case are unreliable. The former President's legal team said earlier this week that securing a bond was impossible after 30 insurance companies rejected his bid.
Let's bring in CNN's Kara Scannell for more. So, Kara, I guess the question now is, what does the former President do? What happens now?
KARA SCANNELL, CNN CORRESPONDENT: Well, I mean, this issue is still before the appeals court. It's ultimately going to be their decision of whether they're going to grant Trump's request to not have to post the full amount, that $454 million bond, or I'll say that he doesn't have to post any of it at all until this appeals process is over. Now, there has been the back and forth of legal filings in this case. And on Monday, Trump's lawyer said that they approached 30 insurance brokers that they couldn't get any of them to underwrite a bond of this size. Part of the issue was because the insurers were not willing to take property as collateral. They want cash, stock, something that can be easily converted into cash. Of course, properties can take a long time to sell.
So, they came to the judge and they said, we're having this problem. We can't do this. It's an impossibility. And what the Attorney General's Office is saying today is Trump can't introduce this new argument as they were this far in the appeals process. So, they're telling the court, they should ignore it. They should ignore the underlying testimony in it from the top legal officer, from the insurance broker, because they have invested interest in the outcome. They're not independent parties, and also saying that, as you said, then maybe they should try to get insurance companies to pull together.
But, they're saying if the court is going to allow and accept this argument, the AG's Office is saying that they want to be heard on it, and that their point here is that Trump needs to tell the court what efforts they've actually gone to? What were the terms that the insurers were offering? Because they're trying to get to the bottom of whether Trump just didn't like the terms that are being offered, or if he really wasn't able to get a bond. So, putting more pressure on that. They also said that maybe Trump should agree to post his properties with the court and have the court have custody of his properties until this is all resolved. Now, the ball, though, is in the appeals court's hands. They will decide whether they're going to grant Trump's motion to give him more time or to let him post a lower amount.
Meanwhile, the deadline for Trump to come up with this money is Monday. And the New York Attorney General's Office has been pretty firm in their belief that they're not going to give Trump any breathing room on their terms. So, it's likely they will take some steps as soon as Monday to move forward unless the appeals court steps in or Trump comes up with the money. Rahel.
SOLOMON: And Kara, just to put a fine point on it, if Monday comes and goes, what does that mean for the former President and his properties?
SCANNELL: So, that means that the New York Attorney General's Office can begin to take steps. This is a long process. It's not like you can normally just walk in and take control of the property. So, it will be a process that would start. They could move to try to foreclose on some properties. They could move to seize some bank accounts, any of the assets that Trump owns, they could take steps to try to take control of, because they -- this was the judgment in this case, and Trump either has to pay the judgment or he has to post a bond, and at this point, Trump hasn't done either.
SOLOMON: OK. Kara Scannell live for us there in New York. Kara, thank you.
All right. This just into CNN, a Georgia judge will allow an appeal of his ruling that kept the prosecutor Fani Willis on the election subversion case. Donald Trump and his co-defendants tried to disqualify Willis because of her relationship with her top deputy on the case. Also happening today, it's a busy day on Capitol Hill. House Republicans are holding an impeachment inquiry into President Joe Biden. Among the Republican witnesses scheduled to testify, a former Biden family business associate whose allegations against the Bidens have yet to be proven, and the man currently behind bars for fraud who will testify from federal prison. The star witness Democrats invited is a surprise. That's Lev Parnas, an indicted former associate of Rudy Giuliani.
Now, House Republicans have argued without evidence that the Biden family profited from the influence held by Joe Biden when he served as Vice President.
[11:20:00]
The White House has called the impeachment inquiry a political stunt.
All right. Let's get to our political panel now. Karen Finney is a CNN Political Commentator, and former Senior Advisor on Hillary Clinton's 2016 presidential campaign, and Miles Taylor was Chief of Staff at the U.S. Homeland Security Department during the Trump administration. Good to have you both.
Karen, let me start with you. President Biden out west as he continues this swing for what could be some really critical states. I want to play for you a clip of what he said to a group of Latino voters.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT, UNITED STATES OF AMERICA: You're the reason why, in large part, I beat Donald Trump. I need you. I need you badly. I need to help -- Kamala and I desperately need your help, because, look, there is only about six or seven states here who are going to determine the outcome of this election, and they are toss-up states. This is one of them.
(END VIDEO CLIP)
SOLOMON: Karen, I need you. I need you badly. What does he need to do to win over these voters, a very important voting bloc?
KAREN FINNEY, CNN POLITICAL COMMENTATOR, & SENIOR ADVISOR, HILLARY CLINTON'S 2016 PRESIDENTIAL CAMPAIGN: Yeah. Hey, Joe Biden was keeping it real with the Latino voters. I mean, he was very honest in that conversation because he does need Latino voters. Trump has made some inroads. And again, this election is going to be won by the slimmest of margins. And so, every vote counts, and rebuilding that coalition really counts. I think what the President needs to continue to do is just have a direct conversation with Latino voters, talk about his record. We know that immigration reform is an important issue to Latinos, but so are a number of other issues. And so, I think we've got to keep the conversation broad and talk to folks where they are, about the issues that they really care about.
The other thing I'll just mention very quickly is, I think we can't underestimate the impact of the legislation that they're attempting to get passed in or to put into effect in Texas. That would essentially allow law enforcement to pull people over or stop them if they suspect they are in the country illegally. We've seen that -- those measures fail in Arizona and Alabama previously, and really create a lot of backlash in the Latino community.
SOLOMON: And Myles, I'm curious, with your experience, just sort of what your take is on this law that is put on hold yet again.
MILES TAYLOR, FMR. CHIEF OF STAFF, U.S. HOMELAND SECURITY DEPT.: Well, look, regardless of what your position is on immigration, this thing could end up if it's allowed to go forward, really being a catastrophe in terms of implementation. There is a reason why the federal government is responsible for immigration, and that's because the federal government is the sole authority in the United States that can determine who becomes an American citizen and who is not. And so, it's a federal responsibility to enforce immigration laws.
If you allow states to start selectively enforcing immigration laws, you create the opportunity for a very serious conflict between the federal government and state governments, the type of conflict that could lead to flashpoints that are actually dangerous for law enforcement, as they can be confused about who is responsible and who is on first on an issue of the utmost importance.
Now, what I will say here is the frustration is that Congress has kicked the can down the road for years and years without solving this problem. And so, you now have states trying to solve it on their own and create this situation. Fortunately, the courts have put it on pause again. But, they are playing with fire by considering this. And make no mistake, it would be extraordinarily complicated for the Department of Homeland Security to do its job if individual states are playing in this space.
SOLOMON: Karen, let me bring up a soundbite from Bernie Moreno last night where he talked about another issue. Well, he was talking about Trump's endorsement. But, what he said in this clip got my attention. Take a look.
(BEGIN VIDEO CLIP)
BERNIE MORENO, U.S. REPUBLICAN SENATE CANDIDATE: Let me just say something. I wear with honor my endorsement of President -- from President Trump. I wear that with a badge of honor, because under President Trump, under President Trump, this nation was safer. It was more secure. We had prosperity around the world. We had generationally low interest rates, and we had generationally low inflation.
(END VIDEO CLIP)
SOLOMON: So, Karen --
FINNEY: Yeah. SOLOMON: -- I'm curious just on the economy front, sort of what the position here is. I mean, we're going to hear from the Fed in just a few hours. Inflation as of late has been picking back up. Gas prices as of late have been picking back up. And some might argue this is probably the worst time for the current President.
FINNEY: Well, look, I think we're also seeing -- we saw some polling from The Wall Street Journal suggesting that people are starting to feel a little bit better. And I think as we've always said, this is a tough issue. And the President has been talking about the things that he can do to control costs, because obviously the President doesn't control inflation by going after those junk fees, those hidden fees that really make a difference for a lot of Americans and lowering costs of prescription drugs.
[11:25:00]
I mean -- I think that's the conversation you heard him have in the State of the Union. It was part of Build Back Better that didn't get passed because of the Republicans blocking it. So, again, I think what you're going to see is him continuing to talk about, here is how we're going to lower costs to make it a little breathing room for families. At the same time, though, let's be really clear. In Ohio, Sherrod Brown has always run his own race. He has stayed very close to his voters, and he has stayed very close to the issues Ohioans care about. And I think we shouldn't underestimate how important the vote last year in the special election regarding abortion access is going to have in terms of issues that will motivate voters in this election.
SOLOMON: Miles, last word here. Yesterday, the thing that you heard a lot was Trump's endorsement power is on the line. This is a test of Trump's endorsement power. Well, the next day, a lot of his candidates had a good night. So, what have we learned? What's the message here? And what, if anything, can you make of this in November?
TAYLOR: Well, I think you learned very clearly that the loyalty test to Donald Trump really is the gate between a candidate and their success within today's Republican Party. Now, you saw Matt Dolan, who was favored by establishment Republicans, traditional sort of Bush Republicans, get trounced by Trump's candidate Moreno in this primary election. I think that says a lot, not just about what we're going to see in November, but the future of the Republican Party.
It's probably too soon to write the eulogy for the Republican Party of the Bush years, or maybe not, because really, again and again, we're seeing candidates forced to pledge fealty to the ex-President in order to succeed. That is also bearing out in the polls. In fact, if there is a theme so far this year within the Republican Party, it has been defeat after defeat after defeat for those traditional establishment Republicans. And we saw that, of course, most recently and prominently with Nikki Haley's loss to Donald Trump. And while she did have a somewhat substantial coalition, she was absolutely no match for the MAGA wing of the Republican Party. So, make no mistake, the MAGA wing is in charge, and that at least is going to be the case through this election cycle.
SOLOMON: Yeah. That's why some say that he has, he being Donald Trump, of course, has reshaped the party in his image.
We will leave it here, but I'm sure we'll talk again soon. Karen Finney, Miles Taylor, thank you both.
FINNEY: Thank you.
SOLOMON: Well, the hospital that treated Princess Catherine is under scrutiny. Still ahead, the investigation into a potential privacy breach of her medical records. We're going to have a live report from London. And a shock move in Irish politics. We will bring you details on the Prime Minister's decision to step down. We'll be right back.
(COMMERCIAL BREAK)
[11:30:00]
(COMMERCIAL BREAK)
SOLOMON: Welcome back. You are watching CNN Newsroom, and I'm Rahel Solomon in New York.
Here are some of the international headlines we're watching for you today. Seven crew members rescued from a capsized South Korean flag tanker have died. Two others were rescued from the stricken vessel, one is alive, while the condition of the other remains unknown. A search for two missing crew members continues off the coast of the Japanese island.
Google has been fined $270 million by the French competition authority. The watchdog group says that Google broke intellectual property rules related to news publishing, Google has been accused of making money off of news gathering without sharing the revenue with the original sources.
And in the UK, an investigation is underway after a hospital staffer is accused of accessing notes in the medical records for Catherine, Princess of Wales. The Health Minister tells Sky News that the alleged breach of privacy is being taken very seriously.
(BEGIN VIDEO CLIP)
MARIA CAULFIELD, BRITISH HEALTH MINISTER: Very strict rules about which patient notes you can access. You're only allowed to access the patient notes you're caring for, with their permission. And there is really strict rules. It's pretty severe, and it's pretty serious stuff to be accessing notes that you don't have permission to access.
(END VIDEO CLIP)
SOLOMON: Let's bring it now from London Royal Correspondent Max foster. Max, fill us in here. I mean, what's the latest?
MAX FOSTER, CNN ROYAL CORRESPONDENT: So, this was a Daily Mirror investigation, and they found that a member of staff in the hospital that the princess was having surgery in back in January tried to access her medical records without the right permissions. So, the systems were basically set off. This was obviously back in January, but it's only coming to light now because of the Mirror investigation. The Information Commissioner that oversees data breaches within the UK has confirmed that they are investigating, looking into or assessing a breach. So, it certainly happened. And very worrying, obviously, not just for the princess, but for the idea that, anyone can get hold of anyone's medical record.
So, you heard the Health Minister speaking there. She also said that she has been in touch with the police about it, although they say they haven't received a formal approach to investigate it. So, as yet, it's not a prosecution, but very alarming, and of course feeding in to so much of the conspiracy. The palace only referring everything to a London clinic, not making any sort of comment on it at all, which isn't unusual, because if it is a potential police investigation, they always stay out of these things. But, lots of people asking lots of questions, and few answers being found online about it as well. But, can't vouch for any of them, Rahel.
SOLOMON: OK. Well, Max, we know you'll say on top of it. We know you've dealt with all of it online and otherwise. Max Foster live for us there. Thanks, Max.
All right. Now to a shock in Irish politics, Prime Minister Leo Varadkar says that he is resigning and will step down as soon as a new party leader is in place. He says that his reasons are both personal and political. He has asked his party to move quickly in picking a new leader, and did acknowledge that his decision may seem sudden.
(BEGIN VIDEO CLIP)
LEO VARADKAR, IRISH PRIME MINISTER: I know this will come as a surprise to many people and a disappointment to some. And I hope at least you'll understand my decision. I know that others will, how shall I put it, cope with the news just fine. That is the great thing about living in a democracy.
(END VIDEO CLIP)
SOLOMON: Well, in Turkey, local elections will take place at the end of this month. And one major topic that voters are focusing on is the economy. Turkey's annual inflation rate came in even higher than expected last month, soaring to 67 percent. At the same time, the value of the Turkish Lira has sunk.
CNN's Scott McLean explores what steps the Turkish government is taking to fight inflation, and if those efforts are actually working for the people.
(BEGIN VIDEOTAPE)
SCOTT MCLEAN, CNN CORRESPONDENT (voice-over): The Ottoman arches and domes of Istanbul's Grand Bazaar are a good reminder that empires rise and fall. When it comes to the value of the Turkish Lira, lately, it only falls. In a dimly-lit alley of the market, exchange traders buy and sell foreign currency and gold for their shops, responding to the slightest of price movements. MCLEAN: Hard to figure out what's going on right now. Everybody is
shouting.
MCLEAN (voice-over): Today, gold and U.S. dollars are in high demand. The Turkish Lira is not. Right now, our money is almost worthless, he says, because people haven't seen inflation fall. They don't trust the Turkish Lira anymore. But, this ancient city never lost faith in a currency that's endured through the ages, gold coins, bars, even tiny one gram chips.
[11:35:00]
People used to buy real estate or lands, says this dealer, right now because the interest rates are so high, the other put money in the bank or buy gold. Just outside the gates of the bazaar, it's all about the Benjamins. There is so much demand that exchange offices are paying even more than the market rate. Because so many people are buying the dollar, we have to buy them at a higher price and we sell them at a higher price, he tells me.
MCLEAN: It sounds like you think that the lira is only going in one direction.
UNIDENTIFIED MALE (Interpreted): Right now, that's how it is.
MCLEAN: The Turkish Central Bank has hiked the interest rate now to 45 percent in an effort to tame inflation. But, so far, it hasn't. The official inflation rate is now 67 percent, and unofficial estimates suggest it is much higher.
MCLEAN (voice-over): In January, to help the poorest Turks cope, the government doubled the minimum wage from a year ago, just ahead of the coming local elections. But, some economists believe that has only made inflation worse.
KERIM ROTA, ECONOMIST: In order to break that cycle, you have to do something. So, we will see after the elections if the government is serious about fighting inflation or not. The central bank increased the credit card rates last week, and is monthly five percent. Monthly five percent means 80 percent on an annualized rate. And if you add up the taxes, it's around 113 percent.
MCLEAN: Who can afford that?
ROTA: Nobody can afford that.
MCLEAN (voice-over): Across the Bosphorus on Istanbul's Asian side, people are stocking up on Iftar essentials this Ramadan, freshly baked piedade (ph), fish and meat. Prices are crazy. This year, it's too much, this woman says. You can say you're young. You can work. But, I do work and I still can't make a living, and I have two jobs, this man tells me.
MCLEAN: Do you keep your money in Turkish Lira or do you keep it in American?
MELEK ALKES, SHOPPER: I can't keep anything. I can't say you.
MCLEAN (voice-over): Pre-school teacher Melek Alkes also has credit card debt at sky-high interest rates.
MCLEAN: How do you dig yourself out of that hole?
ALKES: You see, she is asking for the money for bread.
MCLEAN (voice-over): Scott McLean, CNN, Istanbul.
(END VIDEOTAPE)
SOLOMON: Russia's war in Ukraine has increased the demand for U.S. natural gas, and safety regulators are having trouble keeping up with the surge. Experts say that's cause for concern. The Pipeline and Hazardous Materials Safety Administration has not updated its regulations for the industry in more than four decades. It was on track to propose new regulations in May. But, that timeline has slipped.
CNN's Chief Climate Correspondent Bill Weir joins us now from New York with more on the safety concerns. Bill, good to have you. So what is the risk here and how serious is it?
BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT: Well, it's getting bigger as this entire sector explodes. Metaphorically, the concern is that the actual physical explosions could follow this rapid growth. Liquefied natural gas is basically methane. It is all this incredible fossil fuel that's been uncorked by the fracking boom in the United States, U.S. now the biggest petro state in human history, exporting way more than during the Trump administration, as a result of this boom. What they do is they take this gas and condense it down to 600 times smaller than its original size, using certain hydrocarbons that if they leak, create a flammable mist in the air around these facilities that if ignited by even a single spark can cause enormous explosions.
Some of the biggest we've seen were in Venezuela in 2012, killed over 40 people, destroyed 3,000 homes and businesses around there. That's the pictures you're seeing there. The Buncefield explosion in England in 2005 was the biggest fire since World War Two. It is exactly one of these vapor clouds igniting. And now watchdogs are saying, look, the growth is amazing. It's great for energy security. But, it is a recipe for disaster if there is no regulation. There hasn't been meaningful regulation in this sector since the 1980s.
And as you mentioned, Rahel, there has been some talk recently, but it's been sliding down. The Biden administration has put a freeze on new LNG terminal projects, just to get a sense of all of the hazards. And regardless of whether or not it explodes, methane is an incredibly potent greenhouse gas. It's 80 times more powerful than carbon dioxide when it comes to trapping heat on Earth. So, this is a double hazard, the watchdogs would say.
SOLOMON: Yeah. It's really fascinating, especially in this environment where so much attention is on energy independence and energy production.
Let me ask, Bill, as this industry continues to grow even more, what is the status of efforts to increase safety?
[11:40:00]
WEIR: That's a good question. I think some of it is part of the stall, is part of this wider pause on LNG export terminals to try to figure these things out. But, it's long overdue. The industry has said that they support efforts to sort of crack down on methane leaks. Natural gas was billed as a cleaner alternative to coal. But now, we know that's only true if it never leaks. And it leaks everywhere. New satellites just went up to try to monitor those leaks around the world and get producers to clamp down on them. You can see with the special cameras the pollution that we can't see, that pours off of these rigs out of orphaned wells as well as the new ones.
And so, it's an easiest problem to fix. It's just leaking. There is so much of it produced. It's so cheap, and it's oftentimes cheaper just to burn it or let it leak than to try to pipe it and sell it on a market right now. But, in the age of the climate crisis, that thinking is changing fast.
SOLOMON: Well, Bill Weir live for us in New York. Bill, thank you.
WEIR: You bet.
SOLOMON: All right. Coming up, all eyes are on the U.S. Federal Reserve, as it gets ready to make its interest rate announcement. Coming up, we'll tell you how Wall Street looks straight ahead. Plus, a major shake-up in the ice cream industry involving some of the world's biggest brands. We will have the scoop.
(COMMERCIAL BREAK)
SOLOMON: Welcome back. This afternoon, all eyes will be on Washington where the Federal Reserve is about to conclude its two-day policy meeting. Federal Reserve Chairman Jerome Powell recently said that we're not far from rate cuts. And when he speaks in just a few hours, bankers, lenders and consumers will all be looking for fresh clues on that timeline.
Now, in addition to its rate decision, the central bank will also release a fresh set of economic projections. This will tell us sort of what they're expecting for things like unemployment, GDP, inflation. And this is also going to shed some light on the timing and the pace of rate cuts this year. Besides just what's ahead that we're following, it's also how the Fed is viewing recent indicators like gas prices and inflation that have ticked back up. Powell is expected to give his report in less than three hours, at 2:30 p.m. Eastern Time. So, a lot to watch.
But, in the meantime, let's bring in CNN's economics analyst, I will call you, Moody's Analytics Chief Economist Mark Zandi. Mark, good to have you. Mark, let me start with what you're expecting today. We're not expecting a ton of suspense here. So, what are you watching? MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Rahel, no drama. I think the Fed's going to hold tight here and not change interest rates. They had the federal funds rate, that's the rate they control, at 5.5 percent for almost a year now, and I don't think that's going to change. But, the good news, I do think they're going to reaffirm that they do expect rate cuts later in the year. They have this dot plot, which each dot represents the views of each member of the Committee and their interest rate forecast. And I think those dot plots, when you interpret them, will show that they expect three rate cuts, quarter point each time, by the end of the year.
[11:45:00]
And so, if they follow through, and I think they will, I think they'll get the inflation statistics they need to actually follow through. That'll be good news for American households.
SOLOMON: And Mark, what do you think that statistic is? Is there a specific number you think that the Committee is trying to hit in terms of when is the right time to start cutting? What are they looking for?
ZANDI: Well, they look at this inflation measure called the consumer expenditure deflator, a little bit different than the Consumer Price Index that most of us know and follow for lots of different reasons. They're looking -- their target for that core consumer expenditure deflator inflation, after excluding food and energy to get rid of the volatility, that those prices experience is about two percent. Right now, it feels like abstracting from the vagaries of the data, it's about 2.5 percent to three percent. So, they just need to make sure that we're headed to.
So, I'd say one or two more reports that are more consistent with two than three and we are there to cut rates. And I -- my sense is, by the June meeting, they'll have enough evidence to actually start cutting rates.
SOLOMON: But, Mark, at the same time and sort of game this out for me, they have to balance the risk of keeping rates higher for maybe too long, and perhaps unnecessarily damaging the economy, unnecessarily provoking recession. We haven't necessarily seen that in the data just yet. But, walk me through the balancing act that they're trying to make to try to get this just right.
ZANDI: Yeah. It's tough, right? They want to raise rates high enough, keep them high enough, long enough, to slow growth, to quell inflation, get inflation back into the bottle, get back to that two percent target I mentioned earlier, but not raise rates too high, hold them too high, too long that it pushes the economy into recession. So, it's a very delicate balancing act. It's a matter of judgment. If I were king for the day, if I were on the Committee, I'd be arguing like, hey, let's just cut rates now. We don't have to cut them quickly. We can cut them a quarter point, take a look around and see what's happening. If inflation doesn't cooperate, we can stop cutting. We could even raise.
But, I think the economy is at a place, and inflation is at a place where it would make sense to cut. But, again, that's a matter of judgment. I could see the other side of that argument to debate. And I think the collective wisdom is, hey, let's just wait a few more months here. Let's make sure inflation is going back to target that we've slain the inflation dragon and we could start cutting rates with -- and ensure the economy doesn't go into a recession. So, it's tough, but I think they'll pull it off.
SOLOMON: Well, what's your advice to people who are sort of waiting with bated breath? And I certainly understand for the rate cuts, for the sort of trickle-down effect into the rates that we pay as consumers. And they're sort of waiting to see when this starts to take place. Do you expect a meaningful drop in rates? And what I mean is that I think there is this expectation that the rate --that hat the Fed is going to slash rates, and it doesn't seem to be in the data that they're going to necessarily slash rates significantly. What do you see?
ZANDI: Yeah. I think they'll start cutting rates in June. And maybe, as I said, three rate cuts this year, a quarter percentage point each time. So, first, we go from 5.5 percent to 5.25 percent, 5.25 percent, five and quarter five, five to four and three quarters. That's where we end the year. That's kind of sort of the trajectory, kind of a slow, steady cut in rates. It will -- it should have -- if history is in guide, it should have immediate relief for households with credit card debt, consumer finance loans, home equity lines of credit, because they're tied directly to what the Fed does.
Some folks that are out buying, looking for an auto and need an auto loan or a home and need a mortgage on, they might get a little bit early, but that's going to take more time. So, yeah, you're right. I wouldn't count on rates coming in dramatically here. They're not going to be slashing rates. It's going to be slow and steady and over time.
SOLOMON: OK. That's good context. And then, Mark, just really quickly, for those who are -- who can remember sort of where prices were before the pandemic, what's your sense of how long you might be waiting for that to happen as inflation cools? I mean, are we talking about pre- pandemic, or are we just talking about where it was a year ago?
ZANDI: Yeah. Well, inflation, that's the rate of change in prices, that's slowing, and I expect that to continue. Prices falling back to where they were pre-pandemic, maybe for some things, but for most things, I wouldn't count on that. We're going to be paying more for food and rent and a lot of other things. But, the good news is that wage growth. People's purchasing power is improving, and now rising faster than inflation. So, over time, those higher prices that we're paying will feel less painful from a financial perspective.
SOLOMON: Mark Zandi, so good to have you. Thank you, Mark.
ZANDI: Anytime.
SOLOMON: In the great state of Pennsylvania and the great city of Philadelphia.
All right. Well, beleaguered Boeing is warning that it is set to report a massive loss for the first quarter. The company's chief financial officer says that that stems from the Alaska Airlines incident in January.
[11:50:00]
Remember when the door plug blew out of a Boeing plane shortly after takeoff. The CFO said that the operating profit margin of the commercial airline unit will plunge to about negative 20 percent, Boeing's biggest loss margin in two years. All right. Let's take a look at how that's affecting Boeing on Wall Street. Boeing is actually positive. It's up about 2.3 percent. Shares currently trading at about $185 a share.
And taking a look at the broader markets, you can see a mixed reaction, although I got to be honest, all three averages are pretty much trading near the flat line. The Dow was fractionally higher. The NASDAQ is fractionally lower. The S&P also fractionally lower, as we await the Fed decision at 2 p.m. and the Fed Chair's has comments at 2:30 Eastern. Europe and Asia have closed with the FTSE, DAX and CAC 40 mixed. Let's call, Asian markets are also mixed.
All right. Still ahead, a mega scoop for the ice cream industry. We will tell you about the popular global brands that are involved in a live report coming up.
(COMMERCIAL BREAK)
SOLOMON: Welcome back. And big news in the ice cream industry. Unilever, the biggest in the sweet treat business, is spinning off its ice cream unit. This includes brands like Ben & Jerry's, Magnum and Breyers. The new unit is intended to increase sales and profitability, but it also means that it's cutting about six percent of its workforce.
Joining us now is CNN Business Reporter Nathaniel Meyersohn. Nathaniel, good to have you. So, talk to us about the why here. Why is Unilever spinning off Ben & Jerry's?
NATHANIEL MEYERSOHN, CNN BUSINESS REPORTER: So, Rahel, I think it has a lot to do with where the ice cream market is right now and where Ben & Jerry's is. Ben & Jerry's sales have slowed down in the last few years, up just about two percent last year, and that was the slowest growth across Unilever's portfolio. And interestingly, the ice cream market is down. People may not be new, Rahel, but people are eating less ice cream than they used to, particularly as dairy consumption goes down. And also the timing of this is really interesting as Ozempic becomes really popular, and there is a lot of question marks for the food industry about how Ozempic is going to impact food brands.
SOLOMON: Listen, Nathaniel, I am doing my part to keep the ice cream industry alive. I have at least --
MEYERSOHN: You and me both.
SOLOMON: -- one to two bowls a day. Trust me. Let me ask, Ben & Jerry's has notably been unafraid to weigh into political issues. Is there a sense that this could have anything to do with the activism that has long been a part of Ben & Jerry's brand?
MEYERSOHN: So, Rahel, Unilever didn't actually say we're breaking up with Ben & Jerry's, and we're splitting up Ben & Jerry's because of their activism. But, that looms over this separation, and it's kind of hanging over it. Ben & Jerry's has taken really strong positions on Black Lives Matter and also pro-Palestinian positions, and that's alienated a lot of customers. You've seen a backlash on social media, calls for boycotts against Ben & Jerry's over the years. And this has become a little bit of a headache for Unilever, which is this giant consumer goods conglomerate. It has dozens of brands. It doesn't want to be focused on a brand that quite frankly has been falling the last several years.
So, this looms over all of it. They didn't say it directly. But look, brands right now, they're facing a lot of controversy.
[11:55:00]
You think of Target, Disney. So, it's kind of turning away from activism. And so, Unilever is trying to separate itself.
SOLOMON: Yeah. That's really interesting. Nathaniel Meyersohn live in New York. Nathaniel, thank you.
All right. And we know your time is money. So, thank you for spending some time with me today. I'm Rahel Solomon live in New York. Stick with CNN. One World is coming up next.
(COMMERCIAL BREAK)
