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Eight-Hour Philadelphia Shooting Standoff Ends with Suspect in Custody; Wall Street's Biggest Decline of 2019; Hong Kong Protests; The Politics of Guns; PM Boris Johnson Might Face No-Confidence Vote; Aircraft, Firefighters Battle Wildfires In Greece; NFL & Jay-Z Partner On Social Justice Initiatives. Aired 12-1a ET
Aired August 15, 2019 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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JOHN VAUSE, CNN ANCHOR (voice-over): Bloodbath on Wall Street amid growing fears of a recession is near and the Dow falls 800 points.
A message to Beijing as Chinese paramilitary move to the Hong Kong border and Washington cautions China about a crackdown on protesters.
While Congress does nothing about guns America hit again: six police officers are wounded in a standoff with a shooter.
Hello and welcome to our viewers all around the world. I'm John Vause. This is CNN NEWSROOM.
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VAUSE: It was the worst day of the year for Wall Street and many may have seen when it came out of nowhere. Unemployment in the U.S. had historic lows the stock market has continually hit record highs and consumer confidence remains strong but a small but ominous shift is in the bond markets that the U.S. is heading for its first recession in 10 years. The global economy could follow.
It's called an inverted yield curve and we will explain more than a moment. Investors took their money and ran and the Dow fell 800 points and this is the latest now on the Asian markets. The Nikkei, that is down by 1.5 percent and Hong Kong down just 1.7 percent and the Shanghai Composite down is a little bit more than 0.5 percent.
There are troubling signs in particular the escalating trade war between the United States and China. The president took to Twitter today to claim we are winning big against China but a recession would devastate Trump's chances for a second term.
In rapid succession he sent out nine tweets on the economy, trying to spin the negative into a positive.
"Tremendous amounts of money pouring into the United States. People want safety." And the president is right. As the global economy sputters investors are plowing money into safety, long-term U.S. bonds. But that is not a sign of strength, it's a sign of fear. The lower the yield on benchmark Treasuries, the higher the fear of economic crisis and on Wednesday, the 30 year yield fell to its lowest level ever.
Joining us now from Hong Kong life is Andrew Stevens with more of what's happening in Asia.
When the markets opened it looked like this would continue but it's a little bit more complicated than that. It is down right now.
ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: Most of those numbers, they're not down in a bloodbath capitulation way. It's a big fall for Wall Street to see the Asian market response with a degree of concern but not of panic.
We're also seeing that the U.S. futures market is stabilizing as well. But it's all underlying the R word which is recession, that yield curve you talked, it's something the economists and analysts watch as a sign if you like as to the health of the U.S. economy going forward.
What happens when the yield curve inverts it means the longer term bonds, the 1-year bonds, the interest, the yield actually goes below the two-year bond Treasury, which means the investors think the interest rates are heading down.
They head down because it usually means the economy is weakening and they need a boost from low interest rates and that's what we saw.
What we also saw on Wall Street was that yield curve inversion didn't last very long, it flipped into this inversion and came back out. So it's not the end of the world. If you look around the global economy, it is absolutely crystal clear that the U.S. is slowing down and China as we know. Germany's economy is slipping into negative territory. The Eurozone is weak. So wherever you look the global economy is slowing down and this trade war it not the only reason but is a reason --
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STEVENS: -- and that has been created by Donald Trump and he's talking about other things, about high interest rates earlier were to blame for this.
But really the trade war is contributing significantly in this incentive alone.
VAUSE: There's been threats of tariffs apart from China on Europe and Mexico and Guatemala and other countries, traditional U.S. allies and trading partners and that is having a negative impact.
Andrew thank, you. Andrew Stevens in Hong Kong.
Inverted yield curve ,chances are you'll hear those words a lot in the upcoming weeks. During a normal economic cycle short-term bonds pay a lower return or yield compared to long-term bonds. But right now in the U.S. the sign that investors are worried about the near- term future so are piling into safer long term investments.
It's also an indication of long term pessimism with economic growth and expectation that interest rates will remain low. Here's CNN's Julia Chatterley to tell you what is driving those concerns.
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JULIA CHATTERLEY, CNN ANCHOR: Now, investors are nervous about the state of the economy for a whole host of reasons. We've got the trade war between the United States and China that keeps escalating.
Germany's economy now, Europe's largest is shrinking and there are worries that China's slowdown could also get worse here.
Now, throughout the year, investors have been putting money into government bonds as a flight to safety mechanism because unlike stocks, the returns are pretty much guaranteed for bonds.
The problem is the more they buy, the lower the yield goes. And investors are now seeking safety in bonds even though they're getting a minuscule rate of return.
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VAUSE: Add onto that, inverted has happened before every single recession for the last 50 years without generating a single false alarm. If this also sounds confusing and hard to follow, you're not alone.
That's why we have Mark Zandi the Chief Economist at Moody's Analytics with us try and make sense of what's happening and why. Mark, thank you for being with us.
MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Thanks, John.
VAUSE: OK, it's important to know that while recessions are always preceded by a yield curve inversion, inversions do not always lead to recessions. So speak to me in terms like a 12-year-old would understand. What does all of this mean and what are you expecting in the short term?
ZANDI: Well, the bottom line is that recession risks are uncomfortably high in their rising. And the yield curve and bond investors, stock investors, the sell-off of the stock market all suggest that investors are very nervous about recession. And you know, you can connect the dots right back to the president's -- President Trump's trade war, it's starting to do a lot of economic damage here in the U.S. but also all over the globe.
We've seen you're pretty close to recession, the Chinese economy is struggling and the rest of Asia is having problems and again, the U.S. economy is struggling. So the signal here is that recession risks are very high. And even if we don't suffer a recession, you know, suppose the signal here isn't quite as strong as it's been historically, it is signaling very strongly slower growth dead ahead.
VAUSE: The CEO of Goldman Sachs is among those who are optimistic at least for now that the economy in the U.S. will continue to grow. That comes with a but. Here he is.
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DAVID SOLOMON, CEO GOLDMAN SACHS: The underlying economy as we discussed is still doing OK. I think the chance of a recession in the near term is still relatively low. But we have to watch what's going on with tariffs. We have to watch the U.S.-China relationship. We have to watch some of the other geopolitical noise that's going on.
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VAUSE: Yes, that's your political noise which is causing concern. It seems a lot more bank, because as you mentioned, the German economy shrank last quarter. There's also Brexit which will likely lead the U.K. in recession. And if you look at the economies of Italy, Brazil, Mexico, they're also flirting with two quarters of negative growth. That's a lot more than just geopolitical noise.
ZANDI: Yes, I totally agree with you. I think that the fellow from Goldman is overly optimistic that the damage here is accumulating. Now, it is -- it is important to recognize that the consumer, the American consumer is still OK. They're still out there spending.
And as long as the American consumer spends the world economy will be -- will be able to navigate through. It will be tough but it will navigate through because American consumers by everything that we produced here in the U.S. and everything, a lot of what everyone produces overseas.
But the link back to the trade war will be if businesses who are now more and more panicked by the trade war and have already pulled back on their investment decide to pull back on their hiring, if they do that and unemployment starts to rise, then American consumers will start to pack it in, that's a recession. So we are much closer to recession than I think the CEO of Goldman thinks.
VAUSE: OK. Well, the Trump administration seems pretty much intent on blaming the Fed --
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VAUSE: -- chairman for the current economic troubles. The President tweeting on Wednesday, "Our problem is with the Fed raised too much its interest rates and too fast, now, too slow to cut. Spread its way too much as other countries say thank you to clueless Jay Powell and the Federal Reserve."
And now listen to the White House trade advisor Peter Navarro. Here he is.
(BEGIN VIDEO CLIP) PETER NAVARRO, TRADE ADVISOR, WHITE HOUSE: The biggest problem we're fighting right now at the White House is the Federal Reserve's interest rate policy. We lost almost a point of growth in Q2 simply because the Fed had raised the interest rates too far too fast.
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VAUSE: And the big picture here, how much blame if any do you put on the Fed Chairman and that decision to raise interest rates?
ZANDI: None, none. I mean, the president and his advisers have this completely backwards. I mean, the Fed is in the position of having to react to the trade war. I mean, the President is going back and forth on tariffs and he's pushing the economy back and forth undermining business confidence and sentiment causing the economy to slow and then asking the Fed Reserve to bail him out.
Well, the Fed is trying to figure out exactly what he has in mind. And that's the problem. No one knows, right. I mean, is it a ten percent tariff, is it a 25 percent tariff? On what products? Which countries? When is this going to end? And so the -- until the president can kind of figure that out, until the administration can figure out, the Fed is going to have a lot of difficulty navigating through this.
And that's why recession risks are so high because the Fed is going to have a lot of difficulty calibrating what it does to what the president is doing because it's all over the map.
VAUSE: Well, there's also seven major European governments out there as well as Japan which is selling bonds with a negative yield. In other words, they started charging investors a fee for holding their cash. There's a Danish bank as well offering a ten-year mortgage and an interest rate of -0.5 percent. In other words, you pay them back less than you borrow.
This is not how economics is meant a fundamental work, right? It's like bizarro world. You know, there's something fundamentally wrong going on.
ZANDI: Well, it shows you how fragile the global economy is and how much of a risk going if the U.S. goes into recession, this will be for the entire global economy because there really is very little room for policy response.
I mean, the ECB, the European Central Bank is negative rates as you point out -- here's a factoid for you. In the typical recession in the U.S. since World War II, the Fed has cut interest rates five percentage points, while the funds rate, the interest rate that control is currently two percentage points.
So that would say if we have a typical recession, we're going to go right back to zero interest rates that have to start quantitative easing and it just highlights the lack of room for policymakers. Now, on the fiscal side, on government side, it's hard to imagine that the Trump administration is going to come to terms with the Democratic House and come up with a fiscal stimulus package at least not anytime in the near future, certainly not before the election.
And then go in other parts of the world, they don't -- they don't have room to do it. I mean, in Europe, there is no fiscal space except in Germany, but the Germans are in all likelihood won't use it. So this highlights how important it is for the U.S. economy not to go in recession, because if we do, it's going to be pretty tough to go out and -- get out and we're going to take everyone else with us.
VAUSE: And it's a point which has not been lost on the former Treasury Secretary Larry Summers. He was talking on CNN just a few hours ago. Here we is.
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LARRY SUMMERS, FORMER SECRETARY OF TREASURY, UNITED STATES: That there's a much greater chance of recession than we would want to have and that we're very much without tools if a recession were to come. Without tools because interest rates are so low, because frankly the federal government is so disorganized and because the fiscal stimulus is less than it's been at most moments in the past.
(END VIDEO CLIP) VAUSE: We've had 121 months of economic expansion in the United States, longest on record. Is it inevitable there will be in a recession?
ZANDI: It doesn't have to be inevitable but it -- with these kinds of -- with this kind of policy with this really backward wrongheaded economic policy, the odds of recession are very, very high. Now, look, President Trump could tweet tomorrow and say oh, look, you know, I struck a deal with President Xi. It'll be some kind of face-saving arrangement, nothing substantive but at least that would reduce some of the tensions here and hopefully the economy would gain traction.
So you know it's not like all hope is lost but the longer it takes the President to actually put out that tweet, the more likely we are going into recession.
VAUSE: Mark, we're out of time, but it's interesting. We now have an economy which response to tweets and turns all the time. We'll see what happens. Thank you.
ZANDI: There you go.
VAUSE: Yes.
ZANDI: Thank you.
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VAUSE: Chinese paramilitary units have been seen amassing just miles from the border with Hong Kong. There's no indication a military deployment is anywhere close but among these troops are police carrying batons and riot shields.
The people's armed police are responsible for internal security, riot control and anti-terrorism operations. The U.S. has expressed concern, Trump is suggesting a meeting with Xi Jinping. He tweeted, "I know the President Xi of China very well, he is a great leader, who very much has the respect of his people. He's also a good man in a tough business.
"I have ZERO doubt --
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VAUSE: -- "that if President Xi wants to quickly and humanely solve the Hong Kong problem, he can do it. Personal meeting?"
Clashes were reported Wednesday in one residential neighborhood of Hong Kong, Protesters pointed lasers at a police station and police responded with tear Gas.
In an attempt to regain public support, pro democracy demonstrators posted messages on social media, asking travelers, journalists and medical personnel for forgiveness for the chaos and violence at Hong Kong International Airport.
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VAUSE: And joining us now from Hong Kong is Chandran Nair, the Founder and CEO of the think tank the Global Institute for Tomorrow. Thanks for being with us.
Thank you.
VAUSE: OK. So some protesters have even apologized to the police, the same place who they're accused of using excessive force and sparking the confrontation at the airport in the first place. Here's part of one message. "After an entire night's reflection, we decided to bravely face our own shortcomings and sincerely apologize to city residents that always supported us. To the police who were affected last night, we will deeply reflect and confront our problems."
How do you see these apologies? Do you think they're genuine contrition, is it a smart P.R. move to invite support or a little of all three?
CHANDRAN NAIR, FOUNDER AND CEO, GLOBAL INSTITUTE FOR TOMORROW: Well, who knows? But I think generally it's been welcomed in Hong Kong. I think Hong Kong needs a moment where everyone is a bit contrite and looks to solve the problems. And if it's a bit of a P.R., who can blame them? But I think -- I think generally, I think it's a very, very good move and it has a kind of lifted bit of the spirits in Hong Kong frankly this morning.
VAUSE: Yes. Everyone needs to sort of apologize and gets a bit of contrition but there has been no apologies -- correct me if I'm wrong, coming from the authorities, coming from the police at this point. Is it?
NAIR: No, there hasn't been a response. I mean, I would say venture to suggest that in many ways the Hong Kong police have behaved with incredible restraint or whether there has been excessive use of force as has been made you know, clear in some instances, then the rule of law must supply as it must apply to some of the incidences we've seen particularly on Tuesday night at the airport.
And that's why I think Hong Kong needs to essentially understand that if Hong Kong is to move forward, we can't be pointing fingers. The community has to come together. If there were wrong and excessive forces being expected by the side, then the authorities have to work fairly and take action. But reflection now is a very important thing and the community leaders need to step up. VAUSE: One point the lawmaker there in Hong Kong has strongly suggested without any proof, I should add, the escalation in violence at the airport in recent days could have been caused by infiltrators sent on the orders of Beijing.
Regardless of the cause there, has the violence at the airport caused not only on rift between the protesters and the people of Hong Kong, but also within the protest movement itself?
NAIR: It's hard to tell whether there has been you know, rift within the protest movement because as you well know, the protest movement is a whole group of different organizations have come together for different reasons.
I think it's also fair to say whether they agree with some of the actions being taken, that there are in all movements everywhere in the world, there are extreme positions and they can be infiltrated. We all know that part of the security forces of any countries to infiltrate what they see as the other side and the other side to try and infiltrate as well.
I think those accusations or those observations are probably a bit -- a bit of this and bit of that, but more importantly, at least I can tell for most people to Hong Kong is the thankfulness that none of this has got really ugly. And I think we need to get back things, start talking. I'm suggesting we should start a movement in Hong Kong called let's talk Hong Kong. That's what's lacking at the moment.
And all over the territory we should use this moment now to have a serious discussion about the future of Hong Kong. All of us have different reasons for what this is had happened, but I think we can you know, in my view, identify three areas and one is in my view is the democracy issue has to be resolved.
'Leaders of Hong Kong have to puts it together something that brings together the people in the streets, etcetera and something that is workable. And I don't see the Chinese government throwing it out of hand.
The second one is essentially we have to look at the education system here which equips Hong Kong, the next generation with the skills to essentially fit into a very different world from which their parents are brought in.
And lastly, the big elephant in the room is Hong Kong is land use -- land use and planning which is essentially made it impossible for anyone except the most privileged to have a quality of life that the Feds being arrested into one of the richest cities in the world. Those three things have to be addressed and that cannot be addressed by protest only.
VAUSE: All those issues -- and that's why -- I mean, all those issues are very complicated, very difficult and very --
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VAUSE: -- and also very pressing, but at the moment Beijing is marching troops near the border. There is a reporter a senior commander has warn these troops could be in downtown Hong Kong within ten minutes. Right now that's seen as an attempt to intimidate, but is there a
concern that once these forces are actually out there and they're deployed and they're ready, it increases the likelihood that they'll actually be used in earnest?
NAIR: I think you know, most people I know in Hong Kong including in the media think it's very unlikely that Beijing will essentially send troops in. That would be the extreme last resort and it's very unlikely in my view. And most people I know including media think so.
Having said that, I think Beijing has been categorically saying for a few weeks this is Hong Kong's problem, please sort it out. The fact that there are movements etcetera, well, we all know that you know these can be interpreted in different ways. And maybe it's just a show of strength, maybe it's just a worry could spread into China, though most Chinese people bit sort of bemused by what is happening in Hong Kong.
So I would suggest that we don't read -- try and read the tea leaves but look at the facts. I think it's in China's interest to see Hong Kong thrive and they will do everything to see it thrive. I would also suggest that the Chinese government knows to send the PLA into Hong Kong would be a very, very --
VAUSE: A nuclear option in a way, really. It's just a sort of --
NAIR: It's a nuclear option, yes.
VAUSE: You know, there's --
NAIR: It would be a very bad idea.
VAUSE: There was a tweet put out by the U.S. President few hours ago, suggesting a meeting with Xi Jinping. And on Tuesday, he offered up what seem to be the foreign policy equivalent of thoughts and prayers for the pro-democracy demonstrators in Hong Kong. When he was asked if China should exercise restraint, this was his answer.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The Hong Kong thing is a very tough situation, very tough. We'll see what happens. But I'm sure it'll work out. I hope it works out for everybody including China, the way. I hope it works out for everybody.
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VAUSE: Hoping it works out for everybody. They're not the kind of words or the response we used to from a U.S. president. There are people in these demonstrations carrying U.S. flags, they're singing the American anthem, that kind of stuff. Would the Chinese leadership see Trump's words essentially you know, privately as a green light to act freely?
NAIR: No, I think -- I mean, you know, the President obviously as you know, talking to an American audience, trying to tell him -- them what his view is. And this instance, I happen to, you know, agree with him. That is a Chinese problem, which is also basically a Hong Kong problem and it's to be worked out.
I don't think the Chinese looked for guidance or green lights from the Americans or anywhere else -- from anywhere else. I think the Chinese know that they -- that any attempt to intervene in Hong Kong, as we discussed a few minutes earlier, would be the last option. And I think we're far from that.
If anything, I think we are moving towards hopefully, a period now of you know, more rational debate and discussions. And what Hong Kong need is many platforms in which we can all sit down and talk.
But what has happened in the last 10 weeks is a game-changer. And the Hong Kong establishment and without pointing fingers, we all need to step up, work very hard. But we really need to redesign Hong Kong for the reasons I pointed out.
VAUSE: Yes and it does seem --
NAIR: We need to completely redesign it.
VAUSE: It does seem like that moment has arrived where you know, there's one or two directions, you know, they can sit down and they can work this out. There can be compromise, there can be discussions or it goes off the rails, I guess. But --
NAIR: And fundamentally, we --
VAUSE: Yes, finish your thought.
NAIR: Fundamentally we agree that the Hong Kong business model is broken and Hong Kong is sort of a you know, Hong Kong Inc. and that business model is broken because this has disenfranchised the next generation.
I think we're smart enough, the government has got the tools if he wants to redesign Hong Kong and Hong Kong will be good again.
VAUSE: And the crisis is also a myriad of opportunity. I think the expression -- we'll see if they run with it.
NAIR: Absolutely.
VAUSE: Chandran Nair, thank you so much. I appreciate you being with me.
NAIR: Thank you for having me. Cheers. Bye, bye.
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VAUSE: India's prime minister Narendra Modi has defended his government's one nation/one constitution policy which was responsible for revoking the special status of Kashmir. India is now taking direct control over the disputed Muslim majority region. Mr. Modi's comments came during a national address on India's Independence Day.
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NARENDRA MODI, INDIAN PRIME MINISTER (through translator): This government is recognized for not delaying problems or nurturing them. We do none of that. Now is not the time to delay, nor nurture problems. What hasn't been done for the past 70 years has been done within 70 days.
Two-thirds of both the upper and lower house voted to abolish Article 370 and 35(a).
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VAUSE: A day earlier, Pakistan celebrated its Independence Day and Prime Minister --
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VAUSE: -- Imran Khan warned of a fight to the end over the disputed region.
When we come back, we'll head to Philadelphia, where police say a gunman barricaded inside a home for hours. More details on that.
Also new details on a bipartisan effort in the United States on gun control.
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VAUSE: Breaking news from Philadelphia: a suspect who was barricaded inside a home for hours is now in police custody. He's accused of shooting six officers during a standoff. None of the officers' injuries are life-threatening.
They were serving a narcotic warrant at the residence in North Philadelphia when they came under fire. The city's mayor says this shows why the U.S. needs greater gun control laws.
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JIM KENNEY, PHILADELPHIA MAYOR: Our officers need help. They need help. They need help with gun control, they need help keeping these weapons out of these people's hands, whether it's our six officers who were shot or some 15-, 17-, 20-year-old kid on the streets of Philadelphia who get shot with guns that shouldn't be in people's hands. And it's aggravating, it's saddening and it's just something that we need to do something about.
And if the state and federal government don't want to stand up to the NRA and some other folks, then let us, let us police ourselves.
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VAUSE: This situation in Philadelphia comes on the hours after Democratic presidential candidate Kamala Harris released her plan to take on domestic terrorism. Part of that proposal calls for creating a federal red flag law which requires background checks for online gun sales.
The red flag measure would allow federal courts to temporarily seize the gun of a suspected terrorist or individual who may imminently perpetrate a hate crime.
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SEN. KAMALA HARRIS, (D-CA), PRESIDENTIAL CANDIDATE: So when elected, I'll give the United States Congress 100 days to pull their act together on this and put a bill on my desk for signature.
And if they do not, I am prepared to take executive action to, one, put in place a comprehensive background check requirement; two, put the resources into the ATF to take the licenses from gun dealers who violate the law and, three, to ban the importations of --
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WOLF BLITZER, CNN HOST: Just to be --
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VAUSE: The White House and both major parties in the U.S. have started talks of respending (ph) background checks for gun sales but there's still a lot of skepticism that they can actually reach a deal. Here's CNN's Pamela Brown.
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NANCY PELOSI, SPEAKER OF THE UNITED STATES HOUSE OF REPRESENTATIVES: We must pass gun violence prevention legislation.
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PELOSI: Every day we lose lives.
PAMELA BROWN, CNN SENIOR WHITE HOUSE CORRESPONDENT: House Speaker Nancy Pelosi today, continuing to put pressure on the President and Senate Republicans to take up gun-control legislation, following last week's two deadly mass shootings.
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PELOSI: So, weed to do that. We need to do it soon.
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BROWN: Behind the scenes, CNN is learning the Administration is quietly talking with some Senate staffers about a bill that includes expanded background checks, a move the President seems to favor.
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DONALD J. TRUMP, PRESIDENT OF THE UNITED STATES: I would like to see meaningful background checks. And I think something will happen.
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BROWN: The early talks, which a source describes as informational, not substantive, involves staffers for Republican Senator Pat Toomey, and Democrats Joe Manchin and Chris Murphy.
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SEN. CHRIS MURPHY (D-CT): I know in the end, Republicans aren't going to support background checks legislation unless the President supports it.
I remain pessimistic that that's how this is going to play out.
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BROWN: With the August recess dragging on, other Democrats on Capitol Hill are also skeptical, one Democratic aide saying "I don't feel like they are any more serious than the last 10 conversations on guns."
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IVANKA TRUMP, U.S. PRESIDENT DONALD TRUMP'S DAUGHTER: There is a strong pull--
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BROWN: The President's daughter Ivanka Trump has also been actively involved, having several conversation with lawmakers about gun policy this week.
Now, sources familiar with the matter say that White House aides will be briefing President Trump later this week here in New Jersey on any developments, any progress on the gun talks.
We are told that the President has told his advisers in recent days that he wants to do something concrete, something meaningful on gun control and not something just symbolic. So, we'll have to wait and see how it plays out.
Pamela Brown, CNN, Berkeley Heights, New Jersey.
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JOHN VAUSE, CNN INTERNATIONAL ANCHOR: British New Prime Minister will soon face his first major parliamentary crisis.
Coming up, the Opposition planning a no-confidence vote, the latest on to stuff (ph) a no-deal Brexit. Also ahead, Greece in the fight, to contain wildfires with the help from the E.U., and a warning from the Prime Minister.
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VAUSE: Thanks for staying with us everybody. Welcome back. I'm John Vause with an update on the top news this hour.
First, the U.S. economy could be heading for a recession, sent stocks tumbling on Wednesday. The Dow's 800-point drop was the biggest one- day sell-off of the year. The bad trigger was a shift in the bond markets that historically precedes a recession.
As protests continue to sweep Hong Kong, paramilitary units are gathered near the Chinese border with Hong Kong though there's no suggestion they'll be deployed anytime soon. Protestors and police clashed again on Wednesday. Police fired tear gas into a crowd that had pointed lasers at the windows of a police station.
And we're following breaking news out of Philadelphia. Police say a suspect barricaded inside a home for hours is now in custody. Police earlier said six officers were shot during a stand-off. None of their injuries were life-threatening. Police went to the home in North Philadelphia to serve a narcotics warrant. That's when they came under fire.
Britain's Opposition Party is moving ahead with a plan to head off a no-deal Brexit. It involves calling a no-confidence vote in Prime Minister Boris Johnson's government. The timing is a little vague. We're told it will happen as soon as they had the numbers to win it.
Here is CNN's Isa Soares.
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ISA SOARES, CNN ANCHOR & CORRESPONDENT: In theory, all Boris Johnson has to do is wait and let the clock tick down. The 31st of October is enshrined in law as the day the U.K. leaves the European Union, deal or no-deal. But in reality, there are a number of potential roadblocks opponents of no-deal may use to try and hold things up and peace return to this building in three weeks.
[00:35:00] One of their first actions could be to call a vote of no confidence in the government, something Johnson will likely lose, given his parliamentary majority is down to just one. After that, well, this is when things get really murky, uncharted legal waters, and no one really knows how it would work. What we do know is the Prime Minister will have 14 days to respond, in
which time the country could be swept along in four possible directions. He could call an election, leaving the British people to decide which course to steer.
Alternatively, the leader of the Opposition, Jeremy Corbyn, could be given a chance to actually captain the ship in trying to form a government, and he has already said he would call a second referendum on Brexit.
It's also possible a unity government could be formed, led by someone other than Jeremy Corbyn, but they could try and sink Brexit altogether.
A fourth possibility, if Johnson loses a no-confidence vote, is that he simply refuses to step down, and that means it could leave Britain adrift in a constitutional crisis, and this is where the Queen comes in.
The Labour Party's John McDonnell says that if Johnson refuses to step aside, he will put Corbyn in a taxi straight to Buckingham Palace, where the Queen is normally tucked away, trying to stay out of the politics. Some have said in this sort of constitutional crisis, it would fall upon her to act.
Back in Parliament, MPs have a couple of other things they could try to avoid a no-deal Brexit. They could force Prime Minister Johnson back to Brussels to ask for an extension, although the E.U. has already refused to rework the deal. Or they could create a law to revoke Article 50, the very law which began this Brexit process.
All of this requires opposition and rebel politicians to be very organized and coordinated, something they aren't exactly known for around here. And if they fail to unite, no-deal looks inevitable.
Isa Soares, CNN, London.
(END VIDEO CLIP)
VAUSE: Fire-grated (ph) Greece continue to battle wildfires, which have forced many villages to evacuate with searing temperatures and strong winds spreading the flames.
Bianca Nobilo reports, officials warn this could be the new normal because of climate change.
(BEGIN VIDEO CLIP)
BIANCA NOBILO, CNN ANCHOR & CORRESPONDENT: Trying to calm the flames in Greece, a plane dumps water on the wildfire raging below, one of dozens of forest fires that broke out around the country since Sunday. Some have spread and are now burning uncontained.
The largest blaze threatens the Greek island of Evia. A state of emergency has been declared for some parts of the island. At least four villages were evacuated, and the flames force to call for outside help from the E.U., prompting Italy and Spain to send assistance.
Tuesday into Wednesday, firefighters battled tirelessly through the night, as strong winds and high temperatures fanned the frames. Officials say progress has been made, and no lives have been lost. But the still uncontained fires will leave their mark on the Greek island and its vast nature preserve.
(BEGIN VIDEO CLIP)
KOSTAS BAKOYANNIS, REGIONAL GOVERNOR, CENTRAL GREECE (THROUGH TRANSLATOR): We have a big struggle ahead of us. And we are talking about a rare unique pine forest that serves as the lungs of Evia and the ecological damage is enormous.
(END VIDEO CLIP)
NOBILO: A hundred kilometers south, a view of the ancient Parthenon shows clouds of smoke from Evia have reached the capital, the thick haze covering Athens possibly worsened by a spate of fires breaking out across at least four regions.
The number of blazes have stretched firefighters thin. In the last three days alone, Greece's fire brigade has been called to put out over 180 fires. Though this is not unusual during dry summer months, the country's Prime Minister points to a deeper issue.
(BEGIN VIDEO CLIP)
KYRIAKOS MITSOTAKIS, GREEK PRIME MINISTER: We know that wildfires will be with us. They will be part of our - as they've always been but they've been more part of our daily life as climate change is taking its toll on Southern Europe. And--
(END VIDEO CLIP)
NOBILO: He says coordination across the European Union is imperative now and in years to come. Environmental activists also point to climate change as a contributor to the increasing number of wildfires in recent weeks in Greece, across Europe, and around the globe.
Bianca Nobilo, CNN.
(END VIDEO CLIP)
VAUSE: American professional football now has a hip-hop heavyweight on its team. Coming up, the partnership between Jay-Z and the NFL, and what exactly is the point.
Also, former Boxing champ Mike Tyson reveals a staggering scale of his monthly cannabis habit. We'll tell you how much of his green is going up in smoke. That's after the break.
[00:40:00] (COMMERCIAL BREAK)
VAUSE: U.S. Rapper ASAP Rocky is considering an appeal after he was found guilty for his part in a street brawl in Stockholm back in June. The Swedish Court rejected his claim, he was acting in self-defense.
ASAP Rocky recently returned to the United States. He received a conditional sentence and will not have to serve any further jail time. He'll be on probation for two years.
America's National Football League is partnering with Music Mogul, Jay-Z, to help lead its social justice initiatives. The rapper and entrepreneur wants to build on the activisms on - activism rather of Colin Kaepernick, the former player who famously kneeled during the National Anthem to protest the police shootings and social injustice aimed at unarmed Black men.
(BEGIN VIDEO CLIP)
JAY-Z, RAPPER, SONGWRITER, PRODUCER, ENTREPRENEUR: We forget that Colin's whole thing was to bring attention to social injustice, correct?
So, in that - in that case, right, this is a success, right? This is the - the next thing, right, because there's two parts of protesting. You go outside and you protest. And then the company or the individual say, "I hear you. What do we do next?"
(END VIDEO CLIP)
VAUSE: Kaepernick vowed to continue his fight, on Wednesday, tweeting, "I continue to work and stand with the people in our fight for liberation, despite those who are trying to erase the movement! The movement has always lived with the people!"
Finally here there are those who smoke marijuana and then those who do it to excess. Mike Tyson is the latter. The former boxing champion revealed on his podcast this week that he smokes, yes, get this, $40,000 worth of pot a month.
$40,000! $10,000 a week! And his 40-acre commercial marijuana farm supplies him with a sizeable stash, and Tyson plans to launch a pot- themed luxury resort there.
Everyone has a plan until they're punched in the face. And best quote ever.
Thank you for watching CNN Newsroom. I'm John Vause. Stay with us. WORLD SPORT is next. You're watching CNN.
[00:45:00] (COMMERCIAL BREAK)
PATRICK SNELL, CNN INTERNATIONAL SPORT ANCHOR & CORRESPONDENT: Hi there. Thanks for joining us. Welcome to WORLD SPORT.
We're going to get going in Turkey where the 2019 UEFA Super Cup took center stage on Wednesday night in Istanbul, in a match that pitted the winners of last season's Champions League against the Europa League Champions, so in this case, English Premier League rivals, Liverpool and Chelsea. This would be one thrilling match, and it would be Frank Lampard's
Chelsea who actually take the League in this game, really nicely taking goal from the French veteran, Olivier Giroud after a wonderful through ball from the young American player, Christian Pulisic.
Now, Liverpool hitting back though, Brazilian Forward Roberto Firmino coming off his bench, vital touch there for (ph) Sadio Mane, who levels early in the second half. This game would go into extra time when Senegalese star Mane again on the score sheet, superb strike as the reds take the lead in style.
The London Club though wanted the level and they get it from Jorginho who is cool as you like from the penalty spot.
Speaking of penalties, this one would go to a penalty shootout, in fact, and it would be Liverpool's new reserve goalie, the Spaniard, Adrian, with a key save to deny Tammy Abraham, heartbreak for Abraham, and the blues Liverpool win the Super Cup 5-4 on penalties.
Jurgen Klopp, the Liverpool Manager, just loving it. What a fairytale for Adrian. He was out without a club, would you believe, a couple of weeks ago. That is some story, reds jubilant scenes there in Turkey.
Want to bring in the Football Broadcaster Kevin Egan, joining me now, Kevin, thrilling contest. What were your key takeaways there as far as the two Premier League giants are concerned? What a game!
KEVIN EGAN, FOOTBALL BROADCASTER: How the feeling has changed though for Chelsea. Let's touch on the losing side first because over the weekend they were hammered by Manchester United.
SNELL: They were.
EGAN: Four-nil on the score line. But I think you and I will agree on this that we felt that Manchester United got away with that one a little bit, and Chelsea were impressive throughout that game.
SNELL: Yes, Manchester could have had a couple in the first half in that point (ph).
EGAN: Well tonight, they were superb. There you see, Christian Pulisic from Hershey, Pennsylvania playing through Olivier Giroud, two players that Frank Lampard failed to start at Old Trafford over the weekend.
And they have young, quality players like Callum Hudson-Odoi coming back. For Liverpool, I've got concerns, seven trophies on the table this year for Jurgen Klopp's team. They go and they win this one. They lose the community shield.
For Liverpool though, they don't strengthen in the off-season. The window has slammed. It's come and gone. It's over. They bring in Sepp van den Berg from Holland, the 17-year-old center-back, one for the future. And I just think looking now at Naby Keita's injury, at Alisson's injury and goal, I think Liverpool are--
SNELL: You think the reigning European champions have concerns. EGAN: Absolutely. Yes, I'll say.
SNELL: OK. We'll see how the season unfolds. Kevin, I do want to broaden out this chat because there are all sorts of talking points in play here.
The European transfer window, that is still open, huge speculation, of course, over the Brazilian superstar Neymar on a possible return to Barcelona from PSG. Fascinating! Could he even go to Real Madrid? What is the latest in that?
EGAN: The latest is big. It really, really is. It's been widely reported that Neymar could be on the move to Barcelona because they have made an offer of 100 million euro plus his compatriot from Brazil, Philippe Coutinho. That has been rejected by Paris Saint- Germain.
As for Real Madrid, well El Clasico rival are is with a shout as well. They are also making an offer to Paris Saint-Germain, which includes Gareth Bale and James Rodriguez that has also been rejected by PSG.
Now, the French and Spanish transfer window will run until September 2nd. So, they go until the - the same day. And I think this one could drag on and be a real, real silly season dramatic ending.
SNELL: Yes, silly season. Look, let's talk more Real Madrid because it's been a disjointed pre-season--
EGAN: Yes.
SNELL: --for Los Blancos to say the least. What is the knock-on effect for Gareth Bale at Real, for example, a player - a superstar player--
EGAN: Yes.
SNELL: --who appears to be in limbo right now after that move to China fell through?
EGAN: Well Zinedine Zidane was promised changes. That's one of the big reasons why he came back and Florentino Perez, the - managed to convince him to come back to Real Madrid, having won back-to-back-to- back Champions Leagues.
Gareth Bale is a thorn in his side right now. He does not want Gareth Bale there. And he nearly said as much a few weeks ago, when he said Gareth may be gone as soon as tomorrow before a game in Miami, a pre- season match.
It's been a curious situation. Gareth Bale may have priced himself out of a move. He was on the verge of going to China. Florentino Perez wanted more money. That fell through.
Now, if Neymar, if that domino falls, Gareth Bale could follow. He may very well go to Paris Saint-Germain as well. It's something to consider. As for Real Madrid, it's been a disastrous off-season for them, still an aging side. [00:50:00] Zidane has brought in Hazard, Militao and Luka Jovic, but I
don't think it's enough to transform things. And in the same city, we've got Atletico Madrid who've had an outstanding transfer with them.
SNELL: Spending all that cash on Joao Felix, should have been Whoa Felix. Now, I'm enjoying this chat so much. I want to broaden out even further. Zinedine Zidane, Zizou, he really wanted Paul Pogba from Manchester United. As of right now, he doesn't have Pogba. Where do you see that one unfolding?
EGAN: And Pogba continues to flirt with Real Madrid with his--
SNELL: He publicly.
EGAN: --with his public comments.
I don't think that's going to happen for the simple reason that Paul Pogba is incredibly important to Manchester United. He's a Manchester United player, and the window has shut in England. So, I can see Paul Pogba staying until at least January, and that has absolutely frustrated Zinedine Zidane.
SNELL: As you say, Pogba continues to flirt very, very publicly indeed. Fascinating stuff, Kevin, thank you so much--
EGAN: My pleasure.
SNELL: --for joining us. I suspect we're going to be having more conversations in the run-up to September the 2nd.
EGAN: Beautiful.
SNELL: All right, mate, all right.
Well we have much more to come, in fact, here on CNN WORLD SPORT, including an update to a - a really tragic story, in fact, from earlier on this year, as shocking new details emerge now concerning the death of Argentine footballer, Emiliano Sala.
(COMMERCIAL BREAK)
SNELL: Welcome back to CNN WORLD SPORT.
Now, new details have emerged. This in connection with the tragic death of the South American footballer, Emiliano Sala, and the pilot who was in charge of the flight over the English Channel early this year, David Ibbotson.
On Wednesday, a report revealing the Argentine Striker, who was 28, and had just signed for then Premier League club, Cardiff City, from the French team Nantes, was exposed to high levels of carbon monoxide, so high that it could've cause a seizure, unconsciousness or a heart attack.
The body of Mr. Ibbotson has never been found. Sala never got to play in the Premier League. And for everyone involved, it was absolutely devastating.
(BEGIN VIDEO CLIP)
NEIL WARNOCK, CARDIFF CITY MANAGER: I've been in football management now, 40 years I think now, and it's by far the most difficult week in my career by an absolute mile. It's the trauma - you know, I can't - even now, I can't get my head around the situation.
(END VIDEO CLIP)
SNELL: Well investigators are working to establish how carbon monoxide could have entered the plane's cabin. His family, back home in Argentina is now demanding a detailed explanation.
While in a statement, Cardiff is saying "We continue to believe that those who were instrumental in arranging its usage are held to account for this tragedy."
Well here in the United States, we are counting down to the new American Football Season, which gets underway next month, with the NFL now very much front and center this week in its efforts around social justice.
[00:55:00] A number of players, mostly notably, former quarterback Colin Kaepernick have used the League to protest discrimination despite America's President Donald Trump even calling on those who protest to be fired.
And we've even seen some top musicians refusing to perform at the Super Bowl, in fact, Jay-Z famously rapping this line to the National Football League.
(BEGIN VIDEO CLIP)
(JAY-Z RAPPING)
JAY-Z: I said no to the Super Bowl. You need me, I don't need you. Every night we in the end zone, tell the NFL we in stadiums too.
(END VIDEO CLIP)
SNELL: Well now though Jay-Z and his Roc Nation Entertainment Group will work with the NFL to what it calls enhanced live game experiences and amplify the League's social justice efforts.
It's a new partnership aimed at growing the League's entertainment options, including the halftime show at the Super Bowl. Jay-Z is saying the deal will inspire change.
Now, Double Olympic champion Caster Semenya may have lost her battle to compete at this year's World Athletic Championships in Doha, but the South African is remaining far from silent on the matter in hand.
The 800-meter runner losing her appeal against testosterone levels that have been imposed by World athletics' governing body, that's the IAAF, which means she won't be able to defend her World 800-meter title next month.
Now, speaking at a women's conference in Johannesburg on Wednesday, she certainly did not hold back over her treatment.
(BEGIN VIDEO CLIP)
CASTER SEMENYA, 800M WORLD & OLYMPIC CHAMPION: If you want to get rid of a human being, you go, tell them straight, "I want to get rid of you," instead of going around collecting data on how, you know, their body or their physique, their performance, you know, probably there's something you know, you know, at federal (ph), something or probably the because they say I have advantage, you know, in high testosterone. Of course, I do have it. So what?
(END VIDEO CLIP)
SNELL: Caster Semenya there, speaking in her homeland on Wednesday.
For the entire team here in Atlanta, thank you so much for joining us. Do stay with CNN. Thanks for watching. Bye for now.
(COMMERCIAL BREAK)
VAUSE: Hello everybody, wherever you are around the world, thanks for joining us. I'm John Vause ahead this hour on CNN Newsroom.
Is the longest economic expansion in U.S. history about to end? Recession figures (ph) on Wall Street said the Dow plummeting, and it sees the President's erratic trade policies are a big part.
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