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Cruise Ship Holds 1,800 Passengers; President Trump Gave a Speech Intended to His Base; House Speaker's Olive Branch Snubbed by President Trump; Health Workers in Hong Kong Wants Full Border Shut Down; Automakers Also Affected by the Virus Ripple Effect. Aired 3- 3:30a ET

Aired February 05, 2020 - 03:00   ET

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

[03:00:00]

(COMMERCIAL BREAK)

ROSEMARY CHURCH, CNN ANCHOR: Eighteen hundred passengers stuck on a cruise ship over coronavirus concerns. The latest example of how the outbreak is impacting people around the world.

And partisan animosity on full display on Capitol Hill. The president ignores the House Speaker's outreach hand and she later uses it to tear up his big speech.

Hello and welcome to our viewers joining us from all around the world. I'm Rosemary Church. And this is CNN Newsroom.

And we begin with President Trump State of the Union address where for one hour and 18 minutes he hosted a carefully crafted reality show playing to his base and providing a blueprint for his reelection campaign.

But it all started with a snub. The president avoided House Speaker Nancy Pelosi when she offered to shake hands before the speech and she returned the snub several times. Introducing him without using the words 'high privilege and honor,' standing and clapping only when someone was honored, and ripping up the paper copy of his speech at the end.

Well, the rest of the evening President Trump spoke about the economy, immigration, the border wall, socialism, abortion, judges, guns, school prayer, and pulled out a special guest, Venezuelan opposition leader Juan Guaido.

From start to finish the speech was about his base and Trumpian claims.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Our agenda is relentlessly pro-worker, pro-family, pro-growth, and most of all, pro-American. Since my election, we have created seven million new jobs, five million more than government experts projected during the previous administration.

(END VIDEO CLIP)

CHURCH: And as the president highlighted his health care plans, Democrats cut him off.

(BEGIN VIDEO CLIP)

TRUMP: I'm calling for bipartisan legislation that achieves the goal of dramatically lowering prescription drug prices, get a bill on my desk and I will sign it into law immediately.

With unyielding commitment --

(END VIDEO CLIP)

CHURCH: But throughout the address Republicans were squarely on his side.

(BEGIN VIDEO CLIP)

(CROWD CHANTING)

(END VIDEO CLIP)

CHURCH: And we will take a deeper dive into President Trump's address in just a moment with our political analyst. But first, in the race to challenge President Trump, final results are still not in for the Iowa caucuses but the partial numbers give a dramatic boost to Democratic presidential candidate Pete Buttigieg.

Results from 71 percent of the precincts show Buttigieg with a lead over Bernie Sanders at 26.8 percent of the state delegate equivalence. Elizabeth Warren came in third and trailing in fourth place is Joe Biden. Buttigieg is the first openly gay candidate to be in serious contention for a major party's presidential nomination.

Well, the U.S. Senate is expected to acquit President Trump of abuse of power and obstruction of Congress charges on Wednesday. In speeches on the Senate floor, Republicans urge their colleagues not to remove the president from office, saying the fate of the country depended on it. Some Republicans have said they don't approve of Mr. Trump's pressure on Ukraine to investigate Joe Biden but it didn't rise to an impeachable offense.

Susan Collins was one of two Republicans who voted last week to call for witnesses and seek documents in the impeachment trial.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R-ME): I do not believe that the House has met its burden of showing that the president's conduct, however flawed, warrants the extreme step of immediate removal from office. Nor does the record support the assertion by the House managers that the president must not remain in office one moment longer.

(END VIDEO CLIP)

CHURCH: The vote is expected to fall along party lines.

[03:05:01]

Well, China is reporting another massive spike in the Wuhan coronavirus outbreak. Its confirmed more than 3,000 new cases in Hubei province, raising the number of people infected worldwide to more than 24,000, nearly 500 have died.

Meantime, other countries are ramping up efforts to get their people out of Wuhan. This U.S. flight left last week and two more evacuation flights carrying hundreds of Americans left China just hours ago. Those on board face a 14-day quarantine.

And Japan has quarantined thousands of people on a cruise ship near Tokyo. A former passenger from Hong Kong tested positive for the virus. Since then at least 10 more people have tested positive on board.

The virus is also forcing the Las Vegas of Asia to cut off its life blood. Macau is suspending casino operations for 15 days.

For more, CNN's David Culver joins us now live from Beijing. And, David, this is just moving along so quickly as the number of people infected by the coronavirus rise rapidly, along with those who have died. What is China doing to contain the outbreak, because clearly what they have been doing so far has not been working. What new measures do they have in mind?

DAVID CULVER, CNN CORRESPONDENT: Rosemary, more and more cities are now expanding their lockdowns and we're seeing this increasingly so as part of this containment effort.

Meantime, we also know that they are trying to construct more health care facilities of sorts. According to state media, the second of two hospitals that went up really in just two weeks' time is supposed to be completed today, it's supposed to open to some 1,600 patients tomorrow.

That combined with the hospital that open up on Monday brings about 2,600 patients a place to be treated. And then they're not done there. They are expanding into field hospitals using stadiums and exhibition halls so as to accommodate. They are using three of them altogether. That's going to be another 4,300 beds.

Meantime, we are hearing from a doctor who is sharing his story. And his early attempts to try to sound the alarm about tis what was then a mystery illness. It got him in trouble with the police, but now he is becoming increasingly popular here on Chinese social media in particular, and in state media. They consider him a hero of sorts.

In a matter of days, Dr. Li Wenliang went from treating patients to becoming one. The 34-year-old ophthalmologist diagnosed Saturday with the Wuhan coronavirus. But if action had been taken when he and others started sounding alarms, the severity of the outbreak might have been understood sooner.

Struggling to communicate, Li spoke with CNN briefly by phone. You can hear the hospital machines pausing in the background.

(BEGIN VOICE CLIP)

UNIDENTIFIED MALE: I can hardly breathe.

(END VOICE CLIP)

CULVER: It was back in late December when Li first warned friends on WeChat about SARS-like disease going around. Li sent a group message saying that a test result from a patient quarantined at the hospital where he worked showed a patient had a coronavirus.

But hours after hitting send, Wuhan city health officials tracked Li down, questioning where he got the information. Within days they closed the suspected source of the virus, the seafood market and they announced the outbreak.

But instead of being praised, Li got a call from Wuhan city police. With Li coughing too much and breathing too poorly to speak by phone, we asked Li by text "how did you feel when this happened?" "I felt a little afraid, afraid I would be detained, afraid my family would worry," Li responded.

He agreed to sign this document admitting to spreading rumors online, and severely disrupting social order. It reads, "we want you to cooperate with the police and listen to our reminder and stop the illegal act. Can you do that?" Li answered, "yes, I can."

In the weeks that followed, the Wuhan municipal health commission maintained that there was no obvious evidence for human to human transmission. No infection of health care workers, and that the outbreak was, in their words, preventable and controllable.

And with that the people of Wuhan continued about their normal lives. Then came a sudden jump in infections. China's central government took over, scrambling to contain a spreading virus with a rising death toll.

Chinese state media first reported that Li was one of several whistleblowers silenced by police. Calls for Li and the others to be vindicated grew online. China's Supreme Court even weighed in. Adding, quote, "It might have been a fortunate thing if the public had listened to this rumor at the time."

But for many including Li and his parents it was too late. They all contracted the coronavirus. Li is now fighting for his life, alone in quarantine, but online considered a hero. Tens of thousands praising his attempts to sound the alarm ahead of what's become a global health emergency.

[03:09:58]

And for the first time as we've been reporting about this, I'm just noticing here from our feed in Beijing, it looks like that story went to blocked here. So perhaps being censored out here in China.

Meantime, after the Supreme Court issued those remarks essentially supporting the whistleblowers, we did hear from Wuhan police through statement. They essentially said those who are accused of spreading rumors they weren't detained, they weren't fined. They were simply brought in to talk with police.

We did reach out to Wuhan police as well as the local health commission there, we have not heard back from either.

And Rosemary, we should out, there is a distinction between local government here and central government. A lot of folks believe that the local government created the mess that now the central government is stepping in to try to clean it up.

CHURCH: Right. Yes. A lot of concern there and of course, big impact on trade for China. And of course, that is a discussion for another day. But many thanks to David Culver for bringing us up to date on the situation there, joining us live from Beijing.

Well, Hong Kong is now the second place outside of mainland China to report a death from the outbreak. In all it has at least 18 cases. But as the city scrambles to contain the virus thousands of medical workers are on strike. They are refusing to work until all borders with the mainland are closed.

On top of that, Hong Kong is facing its own cruise ship crisis. Officials say 1,800 passengers are being held as they undergo health checks.

And for more on all of this we want to turn to CNN's Kristie Lu Stout. She joins us live from Hong Kong. So, Kristie, what is the latest on the scare across Hong Kong?

KRISTIE LU STOUT, CNN CORRESPONDENT: Rosemary, the outbreak here is widening. As you reported there is now a total of 18 confirmed cases and one death including reports for local transmission cases. Now these are infections that not linked to Wuhan or Hubei province, but infections are happening inside the community. And that is raising a lot of fear, and a lot of concerns of an even greater outbreak here in Hong Kong.

We're also monitoring that cruise ship docked right now in Victoria Harbour where some 1,800 people are stuck on board in quarantine. They are being held for health checks after former passengers were confirmed to have the virus.

Now on a previous voyage the ship had sailed from Nansha, China to Vietnam and back. It's believed three of the passengers were confirmed to be infected shortly after. As for those people stuck on board, 1,800 and quarantined, we don't know when they will be released. It is also day three of the ongoing public hospital strike. Yet, you

know, we are in the midst of a growing outbreak, and yet a significant number of medical workers have chosen for another day to walk off the job.

We have just learned from the organizers that 5,000 medical workers participated in the strike today. Why they are doing this? They want the Hong Kong government to completely seal off the border with mainland China. They believe that if there is no full closure there is not going to be enough manpower or protective equipment to fight an influx of feared infections.

Earlier in the week, we heard from the chief executive of Hong Kong, Carrie Lam, she announced the suspension of all but three border crossings but that is not enough for the medical workers on strike and also for many policymakers and residents here in Hong Kong who support them. Take a listen to one of them.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's not a good time, but it's the right measure to do because it's the only way so we can cut the bargaining power of the government. And I think even the strike may affect our daily life, but I think it is also a good measure for us to force the government to do something that benefits ourselves.

(END VIDEO CLIP)

LU STOUT: And she is right. In the midst of a growing virus at the Wuhan coronavirus, it is not a good time. Now the hospital authority here has warned that public services are being severely hampered. It's appealing to patients if you have mild conditions to go to private clinics. Back to you, Rosemary.

CHURCH: All right. Our Kristie Lu Stout bringing us up to date on the situation there across Hong Kong. Many thanks.

Well, of course we mentioned the economics of this. And the outbreak in China is damaging the economies of other countries as well as China. And interruption in the supply chain of goods from China to South Korea has two companies closing their doors temporarily.

Our Paula Hancocks has more now from Seoul.

PAULA HANCOCKS, CNN CORRESPONDENT: Some South Korean companies are starting to feel the knock-on effects of coronavirus as many companies in China are being forced to shut their doors. That is having an affect here in South Korea.

Now first off, it is the automakers that seem to be affected, as they do rely on auto parts coming from China. Hyundai, the world's fifth largest automaker has just announced that they will have to shut down their production by February 7th. That is on Friday. They say it will be in varying degrees depending on which production line they will clearly use all the parts they have until they can go no further.

[03:15:01]

Now they have said that they are reviewing measures to try and lessen the impact of this. They are also looking at alternative places to get these parts that they need.

Now another smaller South Korean automaker SsangYong also announced earlier this week that they are going to shut down their production from February 4th to February 12th, again, due to that supply shortage.

So, the automakers are the first here in South Korea to be affected by this coronavirus. But many other companies also have production facilities in China which have had to be shut down. So, this is certainly not going to be the end of those companies affected.

Paula Hancocks, CNN, Seoul.

CHURCH: And several countries are working to evacuate their citizens from China. Hundreds of people have already been airlifted out. Grateful to escape, but now finding themselves quarantined in remote areas.

Cyril Vanier has more.

CYRIL VANIER, CNN CORRESPONDENT: Wearing face masks and escorted by officials in protective clothing, Australian nationals arrive on Christmas Island for quarantine. Evacuated from the epicenter of the coronavirus outbreak they will stay on the remote island for two weeks. The maximum incubation period for the newly identified disease.

In Uzbekistan passengers evacuated from China are sprayed for disinfection. They too will be quarantined. In the U.S., more than 500 passengers evacuated Tuesday. Upon arrival, they are subject to a federally mandated 14-day quarantine, the first there in 50 years.

These are some of the countries that are now evacuating their own out of China as the number infected with coronavirus worldwide soars. Authorities are taking additional precautions. Many countries imposing tough restrictions on travel from China, evacuating their citizens, and placing anyone who may be infected under quarantine.

The Russian prime minister says they will take matters a step further, deporting any foreign citizens found to be infected with coronavirus. Russia is also evacuating its 600 nationals from Hubei province.

(BEGIN VIDEO CLIP)

VLADIMIR MARKOV, EVACUATED RUSSIAN CITIZEN: Currently, my evacuation has started. I'm going to the bus; it was provided by Russian embassy.

(END VIDEO CLIP)

VANIER: One Russian citizen recorded his journey out of Wuhan where he had been living for three months. In Canada, authorities prepare a military base in Ontario to house evacuees from China. There, they will also offer social and mental health services. (BEGIN VIDEO CLIP)

PATTY HAJDU, CANADA HEALTH MINISTER: Part of the reason we are offering social support is they will be isolated from one another. So, the isolation isn't just for the group, it's actually individual where they're isolated from one another.

(END VIDEO CLIP)

VANIER: In France, these quarantined evacuees are less restricted. Some 180 mostly French nationals are at a seaside resort near Marseilles as they are monitored for symptoms of the spreading coronavirus.

Cyril Vanier, CNN.

CHURCH: And we'll take a short break here. We are back in just a moment.

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CHURCH: Well, Donald Trump delivered his State of the Union address Tuesday night, standing in the very room where less than two months ago he was impeached. He talked about the economy, immigration, abortion among other campaign issues.

The president honored conservative talk show host Rush Limbaugh with the Medal of Freedom. And traded snubs with House Speaker Nancy Pelosi.

So, let's bring in CNN's Nic Robertson and John Defterios. Good to see you both. So, Nic, I do want to start with you. It was a State of the Union address designed for President Trump's base. But what's the rest of the world likely to make of what many are calling a reality show?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes. I think that may just be quite a global shrug on this one, because that's not a lot here that sort of hasn't been laid out or hasn't been heard from the president before. The hyperbole that he uses to describe his successes as he sees them, for example, you know, the Middle East peace process.

He talks about the Middle East peace plan that is recently put forward. He talks about that but fails to mention that the Palestinians have rejected it. He uses figures about NATO, saying that he is managed to get $400 billion more money out of NATO nations. That's not strictly true.

That, yes, contributions are up by it's by $130 billion to the end of last year, where it's only $400 billion if he go to the end of 2024. So, you know, what they're hearing from the president here is language that he used before.

I think perhaps toughest on Iran talking about the sanctions the United States is putting on Iran and Iran essentially only needs to call the United States to get those sanctions dialed back.

Certainly, the Iranians know that the president is prepared to talk to them. We've seen now tweets out of senior Iranian leadership this morning saying that they are about to -- about to change their position.

And I think perhaps very striking on this is, you know, President Trump barely mentioned Europe as a trading bloc or individual nations if at all. Yet, his poise in other discussions to potentially put big trade tariffs on goods coming from Europe. So, you know, this is, I think this is a president that the world has heard from. And their expectations and therefore calibration had the respond is pretty much baked in already.

CHURCH: All right. Nic Robertson, many thanks to you, joining us live from London.

As we mentioned, the president spent a large part of the night touting his economic policies. He claims his new trade agreements with China, Mexico and Canada would help generate more U.S. jobs. He also boasted about the high number of jobs that have already been created during his administration.

(BEGIN VIDEO CLIP)

TRUMP: After losing 60,000 factories under the previous two administrations America has now gained 12,000 new factories under my administration, with thousands upon thousands of plants and factories being planned or being built.

(APPLAUSE)

TRUMP: With the tremendous progress we have made over the past three years, America is now energy independent and energy jobs, like so many other elements of our country are at a record high.

(END VIDEO CLIP)

CHURCH: And CNN's emerging markets editor, John Defterios joins us now live from Abu Dhabi. Good to see you, John. So, what do you make of all of this?

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Well, it's amazing that a lot of claims by the president but only kernels of truth, if I can put it that way. Let's call it an election manifest, or call it like it is. And this is all under the banner of rebuilding America.

So, he is running for office, speaking to his base. And in comparison, to the other G7 industrialized nations, Rosemary, the U.S. is growing well. Two-point one percent, but not great. In fact, that's the slowest growth in three years.

He was touting the jobs right now. The last three years of the Obama administration eight million jobs are created. The first three years of the Trump administration? Under seven million jobs. It's not bad, but he was riding a wave created by the Obama administration when it comes to economic policy.

Now he's trying to talk himself into reelection, but he's also spending himself into reelection, if you will. The budget deficit in the United States on an annualize basis has never been higher, it's a trillion dollars.

Like the Republicans like to see major military spending are better than $2 trillion. And of course, corporate America likes him because the corporate rates on taxes have gone from 35 percent all the way down to 21 percent. So, indeed, factories are opening up again. He makes a very good point. Because it will lower gas prices due to the U.S. shale revolution, many more factories are going onto U.S. soil.

[03:24:59]

Now on the trade front very quickly, I don't think the payback from the U.S.- China trade dispute has been notably big payback for American business, if you will. And it actually puts the global economy at risk.

China is growing at its lowest rate in three decades right now. And I don't think contrary to what the president said, that relations with China are on better footing, nor with the NAFTA rewriting of that agreement.

So they did make some labor changes right now, but the tensions between the United States and Mexico and even north of the border in Canada I don' think was worth all the bluster and all the arguing that he did with two key partners south of the border and of course north in Canada at the same time, Rosemary.

CHURCH: Now, of course, when we look to the reaction there from President Trump and from Republicans, and of course the Iowa debacle, it has been a very good week for President Trump. And of course, in a few hours he is more than likely going to be acquitted in his impeachment trial.

How do people across the region there feel about the possibility, if the Democrats can't get organized, of another Trump term?

DEFTERIOS: Well, the narrative here is, which candidate could stand up to President Trump in debates and on economic policy? So, you see the results of Pete Buttigieg in Iowa. He is a very sensible, low key, resilient candidate. Michael Bloomberg who's got a big war chest.

Those here in the region like him. But I would say -- suggest the same in Europe. The real question here for the president going forward, though, is the narrative, the banging of the drum to his base enough to carry him to office?

You know, his approval rating is difficult to get above 50 percent. That's not a fantastic sign. The unemployment of 3.5 percent is the lowest in 50 years. This plays well. But I think he is also vulnerable on health care and on the pharmaceutical. He says he's challenging big pharma. The cost for health care for the average American is very, very high. I don't think he is bulletproof going into the 2020 election to be candid. And I think that's how people see it.

They accept this growth, Rosemary, but it's not stellar growth. They just think he might get reelected unless a challenger really stands up against him.

CHURCH: Yes. Of course, still a long road to go, right? John Defterios, many thanks --

DEFTERIOS: Yes.

CHURCH: -- to you for joining. We appreciate it. And thank you for your company. I'm Rosemary Church. Business Traveler is up next. But first, I'll be back with a check of the headlines. You're watching CNN. Do stick around.

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