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CNN International: At Least 10 Wounded After Missile Strike on Kyiv; Irish Prime Minister Steps Down Citing Personal and Political Reasons; Rising Inflation, Falling Currency Take Their Toll in Turkey; Ryanair CEO: Passengers Should Expect Fare Rises of 5-10 Percent; Shohei Ohtani Interpreter Fired for Alleged Theft. Aired 4:30-5a ET

Aired March 21, 2024 - 04:30   ET

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


[04:30:00]

BIANCA NOBILO, CNN ANCHOR: Still to come, a shock resignation. Ireland's Prime Minister stepped down. His reasons why, next.

Plus, Ryanair's CEO is warning travelers to prepare for higher prices. How much more can you expect to pay for your summer holiday? We've got that for you, coming up.

(COMMERCIAL BREAK)

NOBILO: Welcome back to CNN NEWSROOM. I'm Bianca Nobilo. If you're just joining us, let me bring you up to date with some of our top stories today.

U.S. Secretary of State Antony Blinken will be in Egypt today for more ceasefire talks and to discuss the release of Israeli hostages being held in Gaza. Blinken says they are getting closer to reaching an agreement, but he stressed that making a deal requires an agreement with Hamas.

In Washington, the clock is ticking ahead of a Friday night debate deadline to pass a funding package and avoid a partial government shutdown. Senate Majority Leader Chuck Schumer says Congress is making good progress but admits it will be a tight squeeze to beat that weekend deadline.

The Biden administration unveiled new car emissions rules yesterday. It's part of an effort to boost sales of electric vehicles in the United States. The White House did make significant concessions to automakers and labor unions, including that new standards will be phased in more slowly than first proposed.

At least ten people are wounded after a new Russian missile strike on Kyiv. That's according to the city's mayor, who says two of the victims are hospitalized. Other officials say Kyiv took fire from both cruise and ballistic missiles this morning. About three dozen of them were reportedly shot down, but others damaged a multi-story building and a preschool.

This comes a day after Russian strikes on Ukraine's second largest city, Kharkiv. Ukraine says at least five people were killed and seven others wounded after a missile hit an industrial building. More victims may still be buried under that rubble.

On a visit to Kyiv on Wednesday, the U.S. National Security Advisor said he's optimistic U.S. lawmakers will eventually approve more aid for Ukraine.

(BEGIN VIDEO CLIP)

[04:35:00]

JAKE SULLIVAN, U.S. NATIONAL SECURITY ADVISOR: It has already taken too long, and I know that, and you know that. I'm not going to make predictions about exactly when this will get done, but we are working to get it done as soon as possible, and President Biden is working this on a daily basis to try to deliver this package to the House. But I cannot make a specific prediction today.

(END VIDEO CLIP)

NOBILO: Sixty billion dollars in U.S. military aid has been blocked by House Republicans for months now. Ukraine is facing major ammunition shortages, and Russia has recently captured the town of Avdiivka.

We're also keeping an eye on Brussels, where European Union leaders begin their two-day summit this morning. Their agenda will include both support for Ukraine and boosting Europe's own defense capabilities.

Sebastian Shukla joins me now to discuss this. Seb, first of all, let's talk about those strikes on Kyiv and what are some of the biggest attacks on the capital in months. What more can you tell us?

SEBASTIAN SHUKLA, CNN PRODUCER: Yes, that's right, Bianca. It's been almost 44 days since Kyiv, the Ukrainian capital, came under any Russian attack of any form. And then very early this morning, we saw these barrage of missile attacks.

That number that you mentioned earlier, the 10 injured, has now risen in the last few minutes to 13. Mercifully, though, there have been no confirmed fatalities as a result of these attacks.

But it does come as in the hours after Jake Sullivan, the national security advisor to President Biden, was in the Ukrainian capital, which publicly seemed to be more of a political shoring up and an optics meeting as a reminder to the Ukrainian people and particularly to President Zelenskyy, that even though that congressional funding is still stuck with Congress, that the White House is doing everything that it possibly can to try and unlock the stalemate. Which is causing crippling effects to the Ukrainians, particularly on the front line where they have been losing ground.

We saw recently in the city of Avdiivka, and now these renewed airstrikes from Russia hitting the Ukrainian capital.

The message clearly from the White House is we need a bit more time, but we think things are trending in the right direction. And that message clearly coming to President Zelenskyy, which he tweeted in the last few minutes.

Protection is required for Ukraine now from Kyiv to Kharkiv, Sumy to Kherson and Odesa to Donetsk. This is entirely possible for our partners to demonstrate sufficient political will -- Bianca.

NOBILO: So Seb, speaking of exactly that, there is this ordinary meeting happening in Brussels today between EU leaders, but the circumstances are anything but. What can we expect in terms of those discussions, particularly around European defenses and more military aid to Kyiv?

SHUKLA: Yes, I mean, after the United States, the EU has provided some of the most funding to Ukraine, both military support as well as support that goes towards keeping the Ukrainian economy afloat. And with EU leaders coming together now, the top of the agenda, as Charles Michel, the European Council President, has said in his meeting or his notes to leaders ahead of the meeting, I'm going to read to you what he said.

Which is: In the third year of Russia's war of aggression against Ukraine, we face a pivotal moment. Urgency, intensity and unwavering determination are imperative. Our foremost task is the swift provision of military aid to Ukraine and fast-track procurement and delivery of ammunition to Ukraine.

So that message about and the underlying theme that ammunition and arms are so vital now also coming from Brussels.

And one interesting thing to look at, Bianca, as we go into this two- day summer, is there is going to be a very interesting conversation about Russian frozen assets held within European central banks. There is debate among EU leaders that the profits from these frozen assets could be given to Ukraine to help fund its war and even help rebuild Ukraine as the war continues to unfold -- Bianca.

NOBILO: That's a really good point, Seb, and we will definitely look out for that. Sebastian Shukla for us in Berlin. Thank you so much.

Leo Varadkar made history in 2017 when he became the youngest and first openly gay leader of Ireland. The former doctor-turned- politician led the country through seismic events from Brexit and the COVID-19 pandemic, to legalizing same-sex marriage and lifting a long- standing ban on abortion.

He resigned on Wednesday, shocking many, as CNN's Isa Soares reports.

(BEGIN VIDEOTAPE)

LEO VARADKAR, IRISH PRIME MINISTER: When I became party leader and Taoiseach back in June 2017, I knew that one part of leadership is knowing when the time has come to pass on the baton to somebody else and then having the courage to do it. That time is now.

[04:40:04]

ISA SOARES, CNN ANCHOR AND CORRESPONDENT (voice-over): An emotional Leo Varadkar speaking in Dublin.

VARADKAR: I believe the re-election of this three-party government would be the right thing for the future of our country, continuing to take us forward, protecting all that's been achieved and building on it. But after careful consideration and some soul searching, I believe that a new Taoiseach and a new leader will be better placed than me to achieve that.

SOARES (voice-over): He's resigning as party leader immediately, but will stay on as Prime Minister until a successor could be elected. He cited both personal and political reasons.

Varadkar's resignation coming on the heels of an embarrassing defeat earlier this month when voters overwhelmingly rejected the government's proposed referendums.

Varadkar helped expand Ireland's footprint on the world stage. Just last week, during a meeting with President Biden at the White House, he called for a ceasefire in Gaza and previously criticized U.S. weapons supplies to Israel.

Under his watch, Ireland also increased its diplomatic presence around the world, most recently announcing five new overseas missions. Varadkar leaves behind a more modern and socially progressive island, but his legacy will also be marked with admitted defeats.

Isa Soares, CNN, London.

(END VIDEOTAPE)

NOBILO: The annual inflation rate in Turkey climbed to almost 70 percent in February. The lira has weakened by almost 10 percent this year, leading to higher prices for food and other essential items. CNN's Scott McLean looks at how people are coping with this economic crunch.

(BEGIN VIDEOTAPE)

SCOTT MCLEAN, CNN INTERNATIONAL 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 ally of the market, exchange traders buy and sell foreign currency and gold for their shops, responding to the slightest of price movements.

MCLEAN: You know, hard to figure out what's going on right now. Everybody's 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.

People used to buy real estate or lands, says this dealer. But right now, because the interest rates are so high, they either 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.

MCLEAN (voice-over): 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. It is monthly 5 percent. Monthly 5 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 pide, 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?

MELIK ALEKS (ph), PRESCHOOL TEACHER: I can't keep anything. I can't save.

[04:45:00]

MCLEAN (voice-over): Preschool teacher Melik Aleks (ph) also has credit card debt at sky-high interest rates.

MCLEAN: How do you dig yourself out of that hole?

ALEKS (ph): You see? She's asking for the money for bread.

MCLEAN (voice-over): Scott McLean, CNN, Istanbul.

(END VIDEOTAPE)

NOBILO: Boeing is predicting a massive first quarter loss of around 20 percent after a slew of recent safety issues, like the door plug that blew off a 737 MAX 9 jet just after takeoff from Portland, Oregon in January, leaving a gaping hole in the side of the aircraft you're looking at there.

Meanwhile, the CEO of Ryanair says the situation at Boeing is improving, but he warned of higher airfares on the horizon. Michael O'Leary spoke with CNN's Richard Quest.

(BEGIN VIDEOTAPE)

MICHAEL O'LEARY, CEO, RYANAIR: We're in daily dialogue with Dave Calhoun, Brian West, the CFO. I have confidence in those guys. I think they're getting their arms around us. I think the situation at Boeing is improving.

But there is no doubt this summer we're facing delivery delays, which will constrain Ryanair's growth this year instead of carrying 205 million passengers. I think we're heading for somewhere between 198- 200 million.

RICHARD QUEST, ANCHOR, QUEST MEANS BUSINESS: Right. You also said that there'll be an increase in fares as a result. Why?

O'LEARY: Well, 20 percent of the Airbus fleet this summer is going to be grounded. Boeing are suffering delivery delays. So Europe will not return to its 2019 pre-Covid capacity.

And whereas demand has returned, demand is strong. So if you have constrained supply, strong demand, I think it's inevitable that you're going to see airfares bump up again this summer. I think between 5 percent and 10 percent.

QUEST: And you were telling us earlier about sometimes when you do get a new plane, what you find at the --

O'LEARY: Yes, I mean, we know about -- we have about 24 engineers in Seattle monitoring the production. But when we take delivery of an aircraft into Dublin, we spend 48 hours going through the plane, checking it for errors, omissions or anything else. And we -- well, you know, last year, in 2022 and 2020, we were finding little things like spanners under floorboards, in some cases seat handles missing, things like that. That shows, I think, a lack of attention to detail, quality issues in Boeing. No, nothing big, nothing major. But, you know, that's part of our surveillance of the Boeing system. And we're not willing to put an aircraft into service in Ryanair unless we're fully satisfied that everything is there and as it should be.

QUEST: And you've made your views clear?

O'LEARY: Yes, yes, I mean, to Boeing at the most senior levels, we've been saying for 18 months, both publicly and privately to Boeing, that quality control post-COVID, since they got back making aircraft, has not been acceptable and it needs to be improved.

Boeing now accept that that's the case. The FAA now accept that that's the case. And I think that's good overall for customers and for consumers, even if it means some aircraft delivery delays this year.

(END VIDEOTAPE)

NOBILO: Boeing responded in a statement, saying: We are squarely focused on implementing changes to strengthen quality across our production system and taking the necessary time to deliver high- quality airplanes that meet all regulatory requirements. We continue to stay in close contact with our customers about these issues and our actions to address them.

Just ahead for you, Shohei Ohtani shines in his debut as a Dodger, but there is a scandal brewing in the clubhouse. We're live in Tokyo, next.

[04:50:00]

(COMMERCIAL BREAK)

NOBILO: The 2024 Major League Baseball season is off and running with this year's opening game in Seoul, South Korea. Superstar Shohei Ohtani had two hits and drove in a run in his debut for the Los Angeles Dodgers. Then went on to beat the San Diego Padres 5-2. But there's already a scandal brewing around baseball's highest-paid player.

Let's get right to CNN's Hanako Montgomery live in Tokyo for the latest on that. Hanako, elucidate this rather dramatic and incredible story that's casting a bit of a cloud over Shohei Ohtani's incredible debut this season.

HANAKO MONTGOMERY, CNN CORRESPONDENT: Yes, absolutely, Bianca. I mean, this news was extremely shocking to people here in Japan, especially, like you mentioned, because there is so much excitement around Ohtani playing in the Major League Baseball season opener and also the recent news about his marriage. Also adding to the fact is that Ippei Mizuhara is no stranger. He is the longtime translator and friend of Ohtani.

The pair have actually been working together since 2013 when Ohtani was still playing professional baseball in Japan. And in fact, because Ohtani trusted Mizuhara so much, he actually asked the translator to join him in Los Angeles when he first made the move to Major League Baseball back in 2018.

But their relationship isn't just one of business. It's actually also a friendship. The pair are pretty much joined at the hip. They are always seen together in any media appearance, practice games, you have it.

And also, Mizuhara has previously joked about how he spends more time with Ohtani than he does with his own family. So given the nature of their very close relationship, people in Japan have been talking about this extremely so. And also, of course, the fact that Ohtani is a huge, huge icon here in Japan.

We actually visited his high school earlier for a previous story and the school was covered in Ohtani memorabilia. I mean, he is a living legend here in the country and also in the United States. So again, very shocking news for fans who are concerned whether this gambling scandal, this emerging gambling scandal, will affect his performance this season, which of course has just happened.

Now, in terms of what we can confirm, Mizuhara has been fired by the L.A. Dodgers. We also know in an interview with ESPN on Tuesday, Mizuhara denied ever betting on games in the Major League Baseball League and also said that Ohtani was never involved in any of the gambling.

Now, in a statement provided to CNN by Ohtani's lawyers, they said, and I quote: In the course of responding to recent media inquiries, we discovered that Shohei has been the victim of a massive theft and we are turning the matter over to the authorities.

So again, it remains to be seen how this gambling scandal will unfold in the coming days and how it will affect the pair's relationship -- Bianca.

NOBILO: Hanako Montgomery in Tokyo. Great to speak to you. Thanks for that report.

March Madness is underway in college basketball, and that's got former U.S. President Barack Obama, a notable player himself, bringing his love for the game to his presidential library. That story and more when we return.

[04:55:00]

(COMMERCIAL BREAK)

NOBILO: Former U.S. President Barack Obama is sharing his love of basketball as the March Madness tournament gets underway in the United States. The avid basketball fan is known for his skills on the court and he gave a taste of that while stumping on the campaign trail for Joe Biden in 2020. Take a look at this.

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER U.S. PRESIDENT: That's what I do!

(END VIDEO CLIP)

NOBILO: I remember that so well. Sinking a three and making it look effortless, but in fact he says he hasn't played the game seriously since November 2016 and doesn't plan to any time soon. He quipped in a recent interview that he was playing so well on that day that he decided to go out at the top of his game and not risk an injury.

He also confirmed the Obama Presidential Center being built in Chicago will include a gymnasium with a regulation-sized NBA basketball court with plans to host All-Star Games. What brilliant news for the Presidential Library.

Now to some stories in the spotlight.

Have you ever wanted to be a NASA astronaut? Now's your chance because the U.S. Space Agency is accepting applications. Now obviously not just anyone is eligible. You have to be a U.S. citizen with a master's degree in science, technology, engineering or math. You have to have at least three years experience in some kind of related profession and you have to complete a long-duration flight astronaut physical.

And if you can do all of that and if NASA accepts you, you could be the first woman to walk on the moon or the next man.

And guys, if you're thinking of proposing but not sure if she or he will say yes, well this beauty may increase your odds of getting the right answer.

Christie's is auctioning off this rare 17-carat diamond ring signed by Harry Winston. The pear-cut rock is set in platinum with the highest possible ratings for clarity and transparency. And it has a D color rating meaning it's completely colorless. Christie's predicts the ring will sell for somewhere between 700 grand and a cool million dollars. Today is the last day to place an online bid, so good luck if you're doing that.

And a huge thank you to Maura and Ben who are my incredible, incredible friends and producers on this program who I've loved working with.

That does it here on CNN NEWSROOM. I'm Bianca Nobilo in London. CNN "THIS MORNING" is up next after a quick break.

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