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White House to Unveil Buy American Executive Order; White House Trying to Drum Up Support for Relief Package; U.K. Health Minister: No Easing of England Lockdown; COVID Surge Straining Japan's Health Care System; COVID-19 Creates "New Poor" Throughout Italy; China's Xi Jinping to Address World Leaders at Forum. Aired 4:30-5a ET

Aired January 25, 2021 - 04:30   ET

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

[04:30:00]

ROSEMARY CHURCH, CNN ANCHOR: Welcome back, everyone. I'm Rosemary Church.

Well U.S. President Joe Biden is making moves he hopes will boost America's struggling economy. Later today he is set to sign an executive order that directs government agencies to buy more American goods and services. He's also trying to drum up bipartisan support for his administration's proposed $1.9 trillion COVID relief package.

Right now some Republicans oppose the stimulus plan, including U.S. Senator Susan Collins. She told CNN this --

It seems premature to be considering a package of this size and scope. The additional stimulus checks that the president is proposing are not well targeted. If you have a family income in excess of $300,000, the likelihood that you've been harmed significantly by the pandemic is fairly small compared to people who earn their living in the tourism industry.

Meantime, Democrats and at least one left leaning independent are having a very different reaction to Biden's stimulus plan. Here's Senator Bernie Sanders take.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I-VT): Look, we're going to push Joe as -- the president as far as we can. But given the fact he's been in office for less than a week, I think he is off to a good start. What we have got to do is recognize that right now, we're living in an unprecedented moment in American history.

You have got the pandemic. You have got an economic collapse. We have got climate change. We have got a crumbling infrastructure. And what we have got -- and we have millions of people working for starvation wages.

And what we have got to do is roll up our sleeves and fight for the agenda that working people throughout this country want. They want to raise that minimum wage to $15 an hour. They want that direct payment of $1,400 on top of the $600. We have got to do that.

(END VIDEO CLIP)

CHURCH: And CNN's John Defterios joins me now live. Good to see you, John. So many Americans are unemployed as a result of the pandemic. Many of them lining up at food banks. Why do Republican Senators need help finding out where the additional stimulus money is needed?

JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Well I could say, Rosemary, that $300,000 club that Susan Collins is talking about -- the Republican -- is not pervasive in America and this package does not target them. You know in fact this is a package that's going to strain that collaboration that Joe Biden's been talking about working across the aisle.

Even the more sensible economists like Treasury Secretary Janet Yellen are saying, we have to kind of home in, if you will, on workers, women, minorities, that's the support that's needed because of this pandemic wave here that we'll see. And many feel like they're drowning from economic pressure perhaps without a job and the inability to afford health care.

So what we have right now is this divide. You heard from Bernie Sanders, the independent. Elizabeth Warren, the progressive Democrat on one side. The Susan Collins of the world or a Mitt Romney from Utah saying, look, we've already spent $3.2 trillion, do you really want to take that above $5 trillion with this package? Here's Romney.

(BEGIN VIDEO CLIP)

SEN. MITT ROMNEY (R-UT): I think people recognize this is important that we don't borrow hundreds of billions, actually trillions of dollars from the Chinese for things that may not be absolutely necessary. This is a time for us to act with prudence and care and that's why, by the way why we have two parties. Why we have people looking at one another and making sure there's not some kind of excess that would be not be good long term for the American people.

(END VIDEO CLIP)

DEFTERIOS (on camera): And the challenge, as you know, Rosemary, there's a split, two parties, 50-50 in the Senate with Kamala Harris serving as the breaking vote there on each and every occasion. What Romney is talking about is the record deficit, 130 percent of GDP in terms of debt to GDP. The deficit is over $3 trillion. It's unheard of. So that $300,000 a year club and higher and the wealthier Americans and corporations will have to pay it back and that's why the Republicans are pushing back early, although Joe Biden and that left side of the party seems very determined to get this done and quickly, Rosemary.

CHURCH: We'll watch to see what happens. John Defterios bringing us the latest on that, many thanks.

And last hour I spoke with CNN's global economic analyst Rana Foroohar about the Biden administrations COVID relief package. And I asked her if she thinks his $1.9 trillion proposal is the best way forward for the U.S. take a listen.

(BEGIN VIDEOTAPE)

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Republicans saying that this is too costly now. It's really not the time to be talking about debt. We are still in the middle of a major wave of this pandemic. We've hit record death levels. Unemployment rates are still incredibly high.

[04:35:00]

And you know, you have a new Treasury Secretary, Janet Yellen saying yes, we are going to have to worry about debt, but first we have to get out of the pandemic, and I think that most economists would agree with that.

CHURCH: So, you feel that President Biden should move ahead even if he can't get the GOP on board with this and pass it anyhow?

FOROOHAR: I do. You know, I think trying to reach across the aisle early is a great way to start. You know we've got four years of incredibly contentious politics in this country. But I think at the end of the day this is an emergency situation. I mean, we are in a wartime footing. That is something the president made very clear in his inauguration speech. And I think it's the right move economically.

I think that you've got to start to get demand in the economy. You've got to get people spending again and you really have to backstop folks that are still suffering from, you know, record levels of unemployment. There's going to be major foreclosures, particularly in small businesses if there's not something done soon.

CHURCH: Right, and President Biden wants to increase the national minimum wage and raise taxes on corporations, essentially rewarding hard work in America. But could this potentially hurt rather than help at this time, given some companies won't be able to afford taking on new, more expensive workers?

FOROOHAR: You know, that's an argument that economists often use about raising the minimum wage. The fact is that a lot of people in America are already making the minimum wage. Rewarding work, not wealth is the major campaign slogan that Biden ran on. And it's about really reshaping the American economy. It's about creating an economy that's based on demand, that's based on income rather than the growth of asset bubbles. And I think that that is the right message both short term and long term.

You know, the American economy has become very, very vulnerable on asset prices. President Trump talked a lot about the stock market. Not about the fact that we have had stagnant wages since the 1990s, which is one of the reasons that when you have a major economic shock, people simply don't have savings to cope. You know, we have got to start really thinking about how to build a more income-based economy. And I do think this is the right step forward.

(END VIDEOTAPE) CHURCH (on camera): Many thanks there to CNN's global economic

analyst, Rana Foroohar, for her analysis there.

Well surging coronavirus cases in Japan are causing a shortage of hospital beds. Just ahead, why some are saying the country's health care system is buckling under the pressure.

[04:40:00]

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CHURCH: Mexico's president is the latest world leader to announce he has tested positive for COVID-19. Andres Manuel Lopez Obrador tweeted out the news Sunday evening. He says his symptoms are mild and that he is feeling optimistic.

And in Europe an entire hospital in the German capital of Berlin has been placed under quarantine due to an outbreak of a mutant strain of the coronavirus. The facility hasn't accepted any new patients in three days and its staff are only allowed to travel between work and home.

The Netherlands has imposed a new curfew aimed at reducing social contact. The Prime Minister says even essential businesses like food shops are affected and the U.K. health minister says England is a long way from easing restrictions. Matt Hancock told Sky News there is early evidence the current national lockdown is making a difference.

So for more I am joined by Salma Abdelaziz. She joins us live from London. So Salma, what is the situation there? Talk to us about these restrictions having to stay until mid-February, perhaps beyond.

SALMA ABDELAZIZ, CNN REPORTER: Absolutely, Rosemary. It will perhaps be beyond. (INAUDIBLE). The Prime Minister has already said this will not be open sesame. Restrictions will not be lifted overnight. They will be lifted bit by bit. And is quite simply this country is not there yet. There is still enormous pressure on the National Health Service, on the NHS. So a few things need to change first before these restrictions are lifted.

First, the hospitals in this country, which have been looking at an overwhelming number of coronavirus cases, that case has to come down. And yes, restrictions are beginning to show that the numbers are coming down but still enormous pressure on the country's health service. These doctors and nurse need a break. We need to see near normal levels.

The second concern, and that's something that you've heard the health secretary and health officials here speak about a great deal are the variants. Not just the variant identified here in the U.K. that has of course caused this second wave but also variants that we're seeing in South Africa and Brazil, variants unidentified. (INAUDIBLE)

And the fear is they don't want any more to come in. They want to keep the variants out of the U.K. that's why they're looking at restrictions coming into place like hotel quarantines. But the key here, Rosemary, is the country's vaccination program. You have to see that this country's most vulnerable people being vaccinated. 3/4 of the over 80s have gotten their inoculations. But there's millions more who need that shield, need that protection before the rules are lifted -- Rosemary.

CHURCH: Yes, we just cannot move fast enough for vaccinations right across the globe. Salma Abdelaziz bringing us that live from London, many thanks.

Well a new COVID case spike in Japan is putting serious strain on the country's health care system. According to a recent survey at least 15,000 people are waiting for treatment in hospitals or isolation centers but right now there just aren't enough beds to keep up with demand. The number of new infections has been rising sharply over the past month. According to Johns Hopkins University Japan has reported more than 366,000 cases since the pandemic began.

For more on the situation I want to bring in Selina Wang. She joins us live from Tokyo. Good to see you, Selina. So what is the latest on these hospitalizations across Japan?

SELINA WANG, CNN CORRESPONDENT: Rosemary, great to be with you. That's right, the medical system clearly under strain. Some experts even say it's already in a state of collapse. Now we've reached out to 11 prefectures here in Japan that are currently under a state of emergency and we found out that more than 18,000 people who have tested positive for COVID are either waiting for a hospital bed or waiting for space at an isolation unit. And these numbers have skyrocketed just in the past month.

Here in Tokyo now quintupling to nearly more than 7,500 people who are waiting for space. This is according to a survey by Kyoto news.

[04:45:00]

Now what these numbers mean is that more and more people are dying at home from COVID-19. While these numbers do include people with mild or no symptoms that are waiting for space in an isolation center. It also includes those with more serious symptoms that have no choice but to wait at home. And this all comes as cases in Japan have more than doubled in the past two months to now more than 360,000.

While parts of Japan are under a state of emergency, including here in Tokyo with residents urged to stay at home, businesses like restaurants and bars urged to close early, most health experts I speak to say it's too little too late.

And Rosemary, meanwhile you have Japanese officials trying bat away any rumors that the Olympics could be canceled. They're only 6 months away and they insist they will still go on. But of course the situation on the ground does not bode well for the success of the games. And of course what happened at the Australian Open also point to the challenges in hosting an international sporting event. Seventy- two athletes now under a 14 day quarantine. Rosemary, you can just imagine all the challenges at a much bigger event like the Olympics.

CHURCH: Yes, I mean that has certainly been a wake-up call. Hasn't it? Selina Wang bringing us the very latest from Tokyo. Many thanks.

And just ahead here on CNN. The World Economic Forum is going to look a lot different this year as leaders meet virtually to discuss the global pandemic and other urgent issues. Back with that in just a moment.

(COMMERCIAL BREAK)

CHURCH: The coronavirus is dealing a heavy blow to Italy's economy. Both the financial costs and human toll have been high. Melissa Bell reports on the new poverty the pandemic has created.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN CORRESPONDENT (voice over): Almost a year since the first lockdown much of Italy is still in the grip of restrictive measures across the country as it desperately tries to contain the spread of a new wave of infections. For the government it's been a challenging balancing act between protecting citizens' health and reviving the country's economy.

The human cost of the pandemic in Italy has been very high with more than 80,000 dead. But the economic cost after months of lockdowns is also high. According to the Bank of Italy, half of families surveyed in the country said their income went down in the spring during the first lockdowns and in many places, things only got worse from there.

TITO BOERI, PROFESSOR OF ECONOMICS, BOCCONI UNIVERSITY: There has been a change in the people who have been going to the world food centers where there has been an increase and those are changed. So right now, we have more Italians than before. And before we were more migrants.

BELL (voice-over): At the supermarket in Rome run by the Catholic charity Caritas, they help some of those hardest hit.

PAOLO CHIATTI, AID WORKER, CARITAS: This specific period that have or received so many calls from a huge variety of people or families. We can say that the specific situation of poverty is connected to the pandemic. It impacted to the existing situation of poverty that the spreading of the virus has made the situation even worse.

BELL (voice-over): According to a report by Caritas, poverty rose during the first three months of the pandemic. The charity says it's seen an increase in the number of people asking for help for the first time. These are the so-called new poor. Thirty percent of those they helped.

ROBERTA, MOTHER OF FOUR (through translator): We went from a very normal situation like most people to finding ourselves suddenly without work. My husband is on furlough, but the money didn't arrive, or it arrived after a very long wait. And we found ourselves facing extreme difficulties. We have children and a family to take care of. We still have to pay bills and life goes on.

We couldn't manage financially anymore so we went to the church and asked for help. And they said to come here to the Emporium supermarket. They help us like this, and we try and go on.

MARISA MARSI, FAIRGROUND WORKER (through translator): Our sector was very hard hit. They shut down all the fares. So, we were completely out of work and only have the welfare check to live off. This has been since the summer.

BELL (voice-over): But there is some hope. Italy is set to get 208 billion euros in loans and grants from the E.U. as part of a recovery package.

BOERI: It's difficult to see when it will be over because it will depend on very much of the speed of the vaccine campaign. And vaccine campaign is to be extremely fast to be successful.

BELL (voice-over): The government's first wave slogans promoting resilience have given way to a sense of fatigue with no clear end in sight, especially for those struggling to make ends meet. A return to normality feels a long way away.

Melissa Bell, CNN.

(END VIDEOTAPE)

CHURCH: Well, billionaires around the globe have already recovered from the economic impact of the pandemic while the world's poor are looking at years of struggle. Oxfam International reports billionaire's wealth grew by $3.9 trillion between mid-March and the end of December. But the number of people living in poverty may have increased by up to 500 million last year. Oxfam's report said for the first time ever the pandemic could increase economic inequality in nearly every country at once.

And in this climate of great economic crisis for so many, world leaders are meeting virtually this week for high level talks hosted by the World Economic Forum. CNN's Kristie Lu Stout has our report.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT: It's that time of year again. Davos is taking place. But this time it's different. The World Economic Forum is hosting a virtual forum this year. It's showcasing over 2,000 business leaders and political leaders from all over the world, including German Chancellor Angela Merkel, ECB Chief Christine Lagarde, the Indian Prime Minister, the Japanese Prime Minister, as well as the Chines President Xi Jinping.

[04:55:00]

All these leaders will gather virtually this week under the banner theme of, quote, a crucial year to build trust. And the first keynote speaker is Chinese President Xi Jinping. Xi Jinping is expected to speak at around 8 p.m. Beijing time. And he's expected to address two issues.

Number one, China's success in reigning in the coronavirus and number two, China's call for greater global cooperation in regard to the pandemic, as well climate change. Now this will be Xi Jinping's second Davos speech. He made his Davos debut back in 2017, days before the inauguration of Donald Trump. And in that speech, he defended globalization. He also hailed China's leadership in economic globalization. And he warned of the dangers of a trade war.

Now trade experts have said that the trade war has caused collateral damage for both sides, for both the U.S. and China. Meanwhile, new figures out over the weekend from the United Nations indicates that China has overtaken the U.S. as the top destination for foreign direct investment reeling in some $163 billion. Now this new top ranking underscores China's prominence of world economic stage. So all eyes are on Xi Jinping as he makes this speech to Davos, to the world, and also to the Biden Administration just days after the inauguration.

Kristie Lu Stout, CNN Hong Kong.

(END VIDEOTAPE)

Super Bowl IV is now set, and the Kansas City Chiefs will look to repeat as champs. They will face Tom Brady and the Tampa Bay Buccaneers February 7th in Tampa marking the first time in NFL history a team will play for the title in their home stadium. This will be Brady's 10th appearance in the Super Bowl. All the others, of course, came with the New England Patriots.

And thanks so much for your company this hour. I'm Rosemary Church. "EARLY START" is up next. You're watching CNN. Have yourselves a wonderful day.

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