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Afghan Female Judges Fear Attacks from Men They Once Jailed; Indebted China Property Giant Close to Collapse; Health Advocates Slam Philip Morris International Deal; Protests, Technical Snags Hit El Salvador's Bitcoin Rollout; Historic Parisian Landmark gets the Christo Treatment; Indo-Pacific Pact; Coronavirus Pandemic. Aired 1-2a ET
Aired September 17, 2021 - 01:00 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: Hello, everyone. I'm John Vause. Coming up this hour on CNN Newsroom, stabbed in the back by two faced Australians. France angered by the new AUKUS security agreement, while Europe as a whole has been just left out.
Pandemic playtime is over with countries in Europe about to implement new requirements for COVID passports, as well as tough enforcements of vaccine mandates.
And why is the company which gave us the Marlboro Man and lied about the dangers of smoking. Now buying a company which makes asthma inhalers.
China is outraged France feels betrayed and Europe left out. The reaction day after the U.S., UK and Australia announced their new security deal, which will see Australia develop a fleet of nuclear powered subs with American and British technology.
All three countries have repeatedly insisted the subs will not be nuclear armed. And angry Beijing remains unconvinced. While Paris is complaining that this Security Alliance was a stab in the back after Australia pulled out a $60 billion deal for French made diesel subs.
Britain's Prime Minister says the trilateral agreement is not intended to harm any country. And the White House insists this agreement has not caused any strains or riffs among allies.
(BEGIN VIDEO CLIP)
JEN PASAKI, WHITE HOUSE PRESS SECRETARY: We cooperate closely with France as the President said yesterday, we have a range of shared priorities in the indo-Pacific. And that will certainly continue. We don't see this from our end as a regional divide.
BORIS JOHNSON, BRITISH PRIME MINISTER: The focus is not intended to be adversarial towards any other power, Mr. Speaker, but it merely reflects the close relationship that we have with the United States and with Australia the shared values that we have, the sheer level of trust between us.
(END VIDEO CLIP)
VAUSE: Well, all that may be true outrage does not seem to come close to describe French reaction to the agreement. Cyril Vanier has details now report again from Paris.
(BEGIN VIDEO TAPE)
CYRIL VANIER, CNN CORRESPONDENT (on camera): France is furious after Australia's U-turn. Authorities at the highest level of government here feel that they were blindsided when the Australian Prime Minister reneged on what was referred to in the French press as the deal of the century is $65 billion contract for 12 submarines.
The French Foreign Minister says Australia betrayed their trust, stabbed him in the back even by switching to American technology at the 11th hour. Australia now working with the U.S. and UK to develop nuclear powered subs which travel faster and can remain undetected longer.
France also angry at the US because at its heart this story is a power play by the White House to achieve its overarching foreign policy goal, aggressive containment of China and the indo Pacific with Australia here as a key ally. Years of French negotiation, collateral damage to President Biden's strategic objective.
Particularly galling for France, they claim they got no heads up from the Americans. The French ambassador to the US telling CNN earlier that they weren't informed about this until they saw news reports in the US and in Australia.
France's immediate response, canceling a function at the French Embassy in Washington meant to commemorate their shared military history. Cyril Vanier, CNN, Paris.
(END VIDEO TAPE)
VAUSE: Max Boot is a Senior Fellow at the Council on Foreign Relations. He's also a columnist for The Washington Post. He joins us this hour from New York.
Max, it's good to have you with us again.
MAX BOOT, THE WASHINGTON POST COLUMNIST: Good to be here.
VAUSE: OK, now that the dust has settled a little we know some more about the details about this agreement. There's no doubt this security writer (ph), it's a big deal. It's significant. The immediate reporting, though in Australia after the announcement painted this trilateral arrangement in terms of being China's worst nightmare. You know, Beijing isn't happy, but it seems that it's not really in the worst nightmare territory, is it? BOOT: I wouldn't say it's China's worst nightmare, you know, something like Taiwan declaring independence might be China's worst nightmare. This is probably a lesser variety of nightmare, but it's definitely bad news for China because it suggests that Australia is not going to cave into Beijing's bullying.
And you will recall that in the last year or two, Beijing has really been turning the screws reducing its buy of Australian exports to punish Australia for criticizing Beijing on human rights violations and demanding a probe of the origins of COVID-19 and so forth. And it turns out that that pressure has backfired spectacularly because it has simply lead Australia back into America's arms.
[01:05:05]
VAUSE: In some ways this could be a nightmare for France if you're like accusing Australia of betrayal, being two-face after tearing up an agreement to buy French diesel powered subs. Here's France's foreign minister.
(BEGIN VIDEO CLIP)
JEAN-YVES LE DRIAN, FRENCH FOREIGN MINISTER (through translator): It is really to put it plainly, a stab in the back. We have built a relationship of trust with Australia, this trust has been betrayed. And today I'm angry with plenty of bitterness regarding this break. This is not done between allies.
(END VIDEO CLIP)
VAUSE: The biggest issue here is it the fact that the United States doesn't trust France with its nuclear technology?
BOOT: I mean, I wouldn't put it that way. I mean, France actually has nuclear powered submarines. The issue is that Australia would rather have American nuclear powered submarine technology rather than France's diesel powered submarine technology. Because nuclear powered subs are just a lot more effective. And especially in the wide spaces of the Pacific Ocean, of course, you know, France is upset because they are potentially losing out on a $60 billion contract.
But remember that, that contract was up in the air anyway because of French cost overruns. And so there was a dispute going on anyway between France and Australia. I think there's no question that the U.S. probably could have handled this better diplomatically. I can't understand why France was only notified about this deal, at virtually the same time that it was being publicly announced. That to me seems like a big fail.
But overall, I, you know, I don't think there's any way to simply avoid having France be unhappy about this. But I think it's still a big win for the United States. I think it's a big win for Australia. And I think it's a big win for all the countries that are worried about Chinese expansionism. And I expect that the U.S.-French alliance, which has lasted more than two centuries, will survive this plan (ph). VAUSE: Europe, though, as a whole is totally out of the loop on this deal. Much like the U.S. withdrawal from Afghanistan took them by surprise as well. You know, if there's a clear message from AUKUS being directed at Beijing, is there an unintended one coming a bit heading over to Europe?
BOOT: I think there's no question that this shows that not all of the tensions and the US-European relationship were created by Donald Trump. They were certainly exacerbated by Trump. But those tensions are not going away, simply because President Biden has an office. And I think, you know, part of that is certainly Biden could be more mindful of the Europeans.
And again, Biden really did not consult our European allies on the Afghanistan withdrawal, even though they have more troops there than we did. And again, in this deal with Australia, there should have been more outreach to France to begin with. But, you know, at the end of the day, I think there's simply some differing interests between the U.S. and Europe in particular, the United States as a Pacific power is much more worried about the rise of China than the Europeans are.
VAUSE: Back in June. NATO actually did turn its focus to the Pacific declared China a strategic challenge for the first time. And there was this sense, I guess, that Europe or the United States were, you know, almost on the same page here in how to confront Beijing. What happened?
BOOT: I mean, I'm not sure that there is a fundamental shift in European perceptions of China. I think this is really just French peak over losing out on this very lucrative contract. I think that's all that's going on. I'm not sure that other European countries, like Germany care much one way or the other, and, of course, the United Kingdom as part of this deal as well with Australia. So they're very much on board.
But again, I just don't see that the Europeans are going to be as opposed to Chinese expansionism as the United States is going to be because the Europeans don't have the same equities in the Pacific. They don't have forces in South Korea and Japan as we do. They don't have the trade links and the strategic links that we have in that region.
So it's simply going to be more of a concern for the United States and the Europeans. But I think European concern about Chinese human rights abuses, and Chinese expansionism is certainly growing and that is place the big question mark over the European Chinese trade accord. That was concluded last year.
VAUSE: Max, it's good to see you again. Thank you for being with us. Max Boot, columnist at The Washington Post. Take care.
Satellite images obtained by CNN appeared to show renewed activity at one of North Korea's key enrichment plans, leading to new concerns about Pyongyang's illicit nuclear weapons program. CNN's Paula Hancocks live in Seoul for us again. So, these satellite images, they're one of the few ways to gather intelligence on what's happening inside North Korea. So what precisely can be seen in these images? And what's the takeaway?
PAULA HANCOCKS, CNN CORRESPONDENT: Well, John, these images, the commercial satellite images have been analyzed by the Middlebury Institute and specifically weapons expert, Jeffrey Lewis, and he says what you can see here is that the North Koreans are expanding this Nuclear Research Facility complex.
[01:10:06]
Now he says that it appears as though they are expanding the floor space by about 1,000 meters, which could hold about 1,000 extra centrifuges. Now what this means, he says is that they could, in theory be able to produce 25 percent more weapons grade uranium than they are at the current time.
So, clearly this would be a significant expansion if this satellite imagery does in fact show what it is believed to be showing that it comes also just after, in fact, the end of August was when the International Atomic Energy Agency said in a report that they believe that one of the nuclear reactors had been restarted or was being restarted within the same complex, something that 38 North also corroborated.
So we are seeing an uptick in the movement at this key nuclear facility. Also two sources familiar with the situation say that U.S. officials are aware of the satellite images and they also acknowledge that this would appear to show that North Korea has the intention to increase the amount of weapons grade uranium that it can produce.
So certainly, this comes as a concern to many officials not necessarily a surprise as we did here at the beginning of the year, Kim Jong-un's saying that he was going to increase his nuclear capability. But certainly it comes as a surprise or a concern at the end of a week that has been extremely busy on the Korean peninsula with long range cruise missiles being fired by North Korea, they say over the weekend, short range ballistic missiles as well. And of course on the South Korean side, they also had their own with missiles test via a submarine launched ballistic missile. So this really does end a week of heightened tensions and certainly a concern of where things are going next. John.
VAUSE: Paula, thank you. Paula Hancocks live for us there in Seoul. With a short break, when we come back, Italy will roll out some of the toughest COVID restrictions in the world. So, what's in store for those who refuse to get vaccinated? Also ahead of FDA meeting in the coming hours, could decide if Americans will or will not get a COVID booster shot. Details in a moment.
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VAUSE: Italy will soon impose tough new COVID restrictions. Mid fears cold weather in the coming months could see a rise in cases. For unvaccinated workers who are unable to show a recent negative test, it could mean suspension. CNN's Ben Wedeman has details reporting from Rome.
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BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Italy has become the first country in Europe to require all workers in the public as well as the private sectors to provide proof that they are either fully vaccinated have been tested negative for Coronavirus or have recently recovered from the disease.
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Thursday evening, the government announced these measures in the decree which will go into effect on the 15th of October. Since early August, the so called Green Pass has been required for entry into museums, galleries, sporting and entertainment venues, as well as for, for instance, indoor dining.
Since early September, green passes have also been compulsory for domestic air flights, train travel between regions as well as sea travel.
Italy is eager to avoid another wave of Coronavirus as winter approaches. Failure to comply with these latest measures, some of the toughest anywhere include suspension but not dismissal from work as well as heavy fines for both workers and employers.
Italy was one of the hardest hit countries in the early phases of the pandemic and among European countries has the second highest death toll after United Kingdom, but it's come a long way since then, according to government statistics 75 percent of the population over the age of 12 in Italy is now fully vaccinated. Ben Wedeman, CNN, Rome.
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VAUSE: France is wrapping up efforts to encourage vaccinations. Around 3,000 healthcare workers have been suspended for failing to comply with the government's mandatory COVID vaccination requirement. Most support staff according to officials and the suspensions are temporary. But one hospital worker is protesting the vaccine rule with a hunger strike. He says he's not against vaccinations but opposes the shots being made mandatory.
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UNIDENTIFIED MALE (through translator): It's a hunger strike because we think that this vaccination order shouldn't be happening, and that it was imposed with sheer violence against the health personnel.
(END VIDEO CLIP)
VAUSE: Joining me now from Los Angeles, Anne Rimoin, Professor of epidemiology at the UCLA Fielding School of Public Health. Professor Good to see you. Welcome back.
ANNE RIMOIN, PROFESSOR OF EPIDEMIOLOGY, UCLA FIELDING SCHOOL OF PUBLIC HEALTH: Nice to be here.
VAUSE: OK. There is really just this inconsistency globally when it comes to these COVID-19 passports. Many countries in Europe are embracing the idea. A headline in the economist explains why, how France tackled vaccine hesitancy COVID-19 passports approved, efficient and surprisingly popular.
Well, in many states of the U.S. where vaccination rates are low, and hospital admissions are high. Mandated COVID passports have been banned. There's an executive order signed by the governor of Florida, which says businesses and schools and government agencies, which are asking for proof of vaccination from customers or staff can now be fined $5,000 that happen on from starting on Thursday.
So people will most likely die in this process. But I guess it's almost like a real time experiment now to find out just how effective these COVID passports are in boosting vaccinations in protecting the health of a community. The problem is, it's an experiment we don't really need.
RIMOIN: Well, John, I couldn't agree more. I think that, you know, this, this issue of vaccine passports has become politicized, like everything else. We have many examples of this. The yellow fever vaccine has been required globally for decades. And that is a perfect example. We also require vaccinations in schools, for health workers, you know, for many, many vaccines. So this is not a new concept. And it's really not only to keep these health workers safe, but to keep everybody safe in a hospital, for example, and same thing for vaccine passports going to places.
You want to be able to reduce the probability of having this virus spread. If you are vaccinated, you are less likely to get COVID. You are less likely to spread COVID. And I think that that we really have not -- we run out of a lot of options here. So very important concept to be able to consider at this point.
VAUSE: Yes, absolutely. Right now 24 states in the U.S. are threatening to sue the Biden administration for mandating vaccines. Here's his part of the President's response, and it begins by referencing the state of Mississippi and its requirements for vaccine. Here it is.
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JOE BIDEN, U.S. PRESIDENT: Mississippi, children are required to be vaccinated against measles, mumps, rubella, chickenpox, hepatitis B, polio, tetanus and more. These are state requirements. But in the midst of a pandemic, it has already taken over 660,000 lives. I proposed requirement for COVID vaccines. And the governor of that state calls it quote, a tyrannical type move, a tyrannical type move.
(END VIDEO CLIP)
VAUSE: It does raise the question why the anger and outrage and the outright refusal of a COVID vaccine? RIMOIN: Well, you know, John, I think the problem is this virus has become very political. It's unlike any other virus that we are -- that we're dealing with that we have a vaccine for.
[01:20:09]
So I think that the problem is we've let politics get in front of public health. And we are now paying the price. We are a country that has, you know, we're struggling to get our numbers up with vaccination. We are now seeing outbreaks. We're seeing hospitals overwhelmed again, in certain states. And we're going to continue to pay the price until we can get enough vaccines and arms. And these kind of statements by governors, the political statements that are happening, really continue to polarize an issue which should really only be about public health, not about politics.
VAUSE: The messaging overall on vaccination has been sort of a gently, gently, softly, softly approach. It's a personal choice. The problem is that it's not. Mississippi, for example, it's one of the lowest vaccination rates in the country, while the highest number of children being treated in hospital for COVID. There is a connection between those two numbers, especially for children under 12, right?
RIMOIN: Absolutely. What we know is that cases are increasing dramatically in places where we have low vaccination rates, and they're increasing dramatically, in particular, in children and young adults, and particularly children who don't have an option to be vaccinated at this point. And they really rely on everybody else around them who can get vaccinated, getting vaccinated.
That is really the benefit of having high vaccination rates is that it protects those people who cannot get vaccinated and are really vulnerable to this virus. And a reminder, we have the Delta variant that is spreading. This is not like the original strain. It is so much more contagious than the original strain. So the strain sticks are just that much higher.
VAUSE: We'll finish off with the wisdom of radio shock jock, Howard Stern, listen to this.
(BEGIN AUDIO CLIP)
HOWARD STERN, RADIO SHOCK JOCK: When are we going to start putting up with the idiots in this country and just say you now -- it's mandatory to get vaccinated? Fuck them, Fuck their freedom. I want my freedom to live.
(END AUDIO CLIP)
VAUSE: Yes, at what point is there that recognition of the rights of the vaccinated? When does that happen?
RIMOIN: Well, I think we're really coming to the point now where people are tired of seeing these rates continue to spike to see the unnecessary illness, the unnecessary death, and the burden that is placing on our health system. You know, we have to remember, it isn't just about a personal choice of vaccination or not vaccination. If you are unvaccinated, you are more likely to suffer severe disease, hospitalization and death. We're seeing hospitals overwhelmed. That doesn't just impact people who have COVID. That also means if you have a heart attack, it is much less likely to get care. We've all heard stories of this.
If you have a stroke, you're much likely to get care. You are much likely to get care if you're in a car accident if the hospitals are overwhelmed. So this issue of how this -- the COVID-19 pandemic is affecting everyone is becoming clearer and clearer as we see these waves and people who need care being really unable to get it because the hospitals are overwhelmed with cases of COVID.
VAUSE: A lot of people who will die in the coming weeks and months say it's all unnecessary at this point. Anne, thank you. Anne Rimoin there in Los Angeles. Appreciate it.
Independent devices to the U.S. Food and Drug Administration will gather in the coming hours to discuss the need for booster shots. There is no agreement over the needle even the effectiveness of an extra dose. CNN's Jason Carroll has details.
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JASON CARROLL, CNN NATIONAL CORRESPONDENT (voice-over): An important day in the battle over booster shots and FDA Advisory Committee will meet to discuss whether it's now time for some Americans to get that added shot. This as some states have already made plans as they await approval of a third dose roll out next week.
DR. LEANA WEN, FMR. BALTIMORE HEALTH COMMISSIONER: There's actually a pretty straightforward case to be made for why we should be allowing booster shots at this time, especially for older individuals and people who are more medically vulnerable.
CARROLL: An estimated 5.2 million people could be eligible for a booster shot. Though, there is still debate among doctors and public health experts on how effective that shot would be.
DR. CARLOS DEL RIO, EMORY UNIV. SCHOOL OF MEDICINE AND GRADY HEALTH SYSTEM: Giving more vaccine to those people already vaccinated is going to do very little to sort of lessen the burden on our hospitals. We got to get the unvaccinated vaccinated in order to really change the course of the pandemic.
DR. FRANCIS COLLINS, DIRECTOR, NATIONAL INSTITUTE OF HEALTH: I was one of the biggest skeptics of the docs in the White House about boosters and I've become convinced particularly looking at the Israeli data.
CARROLL: That data supports the argument for an additional shot. Several studies being presented in that FDA meeting suggests that boosters would help. Moderna also saying it's vaccine shows waning protection over time and expects more breakthrough cases will start to crop up.
While booster shots could amp up protection for those already vaccinated, the nation's hospital system is overloaded with COVID patients, most of whom are unvaccinated.
[01:25:07]
Nearly 100,000 Americans are hospitalized with the virus.
Now for the first time since June, the CDC predicts new daily hospitalizations will decline between now and early October.
In Los Angeles, vaccines will soon be required for indoor bars, nightclubs and wineries. Vaccines or a negative test will also be required for large indoor events like concerts.
GOV. GAVIN NEWSOM (D) CALIFORNIA: We have got to break this COVID cycle these surges that we're experiencing. We are not timid in terms of leaning in anticipating the changing dynamics.
CARROLL: In Florida the opposite mindset. Today, the state will begin punishing local governments for requiring their employees to get vaccinated, threatening a $5,000 fine for each violation.
(on camera): Meanwhile, some big businesses are making headway when it comes to vaccination efforts. United Airlines announced that 90 percent of its employees are now vaccinated. It was the first major carrier to require that its employees be vaccinated. Jason Carroll, CNN, New York.
(END VIDEO TAPE)
VAUSE: The death toll from COVID in the United States has been staggering the highest in the world and impossible to comprehend. But this scene in Washington, with more than 650,000 flags planted on the National Mall is a sobering representation of American lives lost during the pandemic.
A year ago artist Suzanne Brennan Firstenberg created the same scene but then there were just over 260,000 flags. This year the flakes stretched for almost four miles.
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VAUSE: Welcome back, everyone. I'm John Vause and you're watching CNN Newsroom. The humanitarian crisis in Afghanistan has only gone from bad to worse since the Taliban took control the country. The head of the UN refugee agency Filippo Grandi was in Kabul Wednesday where he was shown a warehouse filled with relief supplies. But he warns the situation is desperate and more help is urgently needed.
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FILIPPO GRANDI, U.N. HIGH COMMISSIONER FOR REFUGEES: In the last few months alone, hundreds of thousands more than half a million Afghan have been freshly displaced by recent fighting, adding themselves to the millions that were displaced in previous years.
[01:29:41] Many of them are sleeping out in the open. Food is very scarce in the
country. Medicines are lacking. The situation from a humanitarian point of view is pretty desperate.
(END VIDEO CLIP)
JOHN VAUSE, CNN ANCHOR: Well, as the Taliban tightens its control over the country, it seems the more Afghans are trying to flee. And among them, hundreds of female judges now fearing reprisal attacks from the men they sent to jail.
CNN's Anna Coren reporting live for us now from Hong Kong on this. It is interesting, because these women once had these incredibly -- you know, positions of authority. They have respect. Now they're living in hiding because they just don't know what is going to happen the following day.
ANNA COREN, CNN CORRESPONDENT: Well John, a month ago when the Taliban came into power, they said women could work, they will be respected, they will be a part of society. Remembering that a generation of women have been educated in the last 20 years.
Clearly, that is not happening. As you say, these very powerful important women under the previous government, you know, they are now fearing for their lives. They say they have targets on their heads and they need to leave Afghanistan.
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COREN (voice over): Childhood laughter shared by two young sisters who have no idea about the dangers they now face. Their mother, Nabila, was a judge in Afghanistan, a profession now made impossible for women.
The Taliban has told them not to return to work. And now the whole family has a target on their heads.
NABILA, AFGHAN JUDGE (through translator): A day or two after the Taliban arrived in Kabul, my personal number was called and I was threatened with revenge, threatened with murder. And I had to cancel my phone numbers.
COREN: The family is currently in hiding, in fear of being hunted down by men she put behind bars. Some of whom have now been freed by the Taliban.
NABILA: Because of this threat from the prisoners, I changed my house once every four days. I hide there and I try to never go out.
COREN: Her fear compounded after a policewoman, eight months pregnant, was murdered by the Taliban according to her family, a claim the Taliban deny.
Nabila is one of around 200 women judges left stranded in Afghanistan. Many of them presided over the worst cases of the violence against women including rape, murder and domestic abuse. Some of them had even traveled to the U.S. for a judicial education program.
Under the cover of darkness and gunfire, a few dozen others have managed to get out. One experienced high court judge risked her life to flee the country after the Taliban came looking for her.
UNIDENTIFIED FEMALE (through translator): Five members of the Taliban came to my area asking my neighbors about me. I relocated again because I was so scared they could find me.
COREN: This judge managed to escape with her nieces and nephews on a flight from Kabul after days of waiting at the airport. She wants to keep their identity hidden as she fears for family members back home.
They landed safely in Poland and are now trying to get to the U.S. But the judge can't forget the life she left behind.
UNIDENTIFIED FEMALE: Now I feel like I lost everything. Imagine you have a personality, a career, respect, a home, a car, a life and everything. And suddenly you leave everything.
COREN: As chaos and uncertainty unfold inside Afghanistan, the U.S.- based International Association of Women Judges is trying to help more of their Afghan members to leave. But they say western countries need to do more.
VANESSA RUIZ, INTERNATIONAL ASSOCIATION OF WOMEN JUDGES: Governments need to be better, more agile, more generous, frankly, in giving admission to people who are in danger in Afghanistan.
We're not going to abandon them. We're not going to forget them. And we're not going to let the world ignore them.
COREN: For those left behind, like Nabila, escape is their only hope as they see no future in their homeland under Taliban rule. But she hopes one day she will be allowed to return to the bench.
NABILA: We have been working for many years to combat violence, oppression and injustice. And I want to continue with my work.
COREN: Her bravery in protecting Afghanistan's women despite the dangers was to create a better future for her daughters, a generation that now faces a dark reality under the new regime.
(END VIDEOTAPE)
COREN: John, it's not just these 200 judges -- female judges, desperate to leave the country. There are so many other women who were in professions as other women who fled, you know, violent relationships, marriages, and have been living in shelters.
And I was speaking to a human rights activist yesterday who looks after one of these shelters. She is currently caring for dozens of women and children.
[01:34:57]
COREN: And she said the Taliban does not want to hear us, they do not want to see us. Why is there such hatred towards women?
She wants her women and girls to get out of the country as well because she said the Taliban will not let us live a life worth living.
VAUSE: Anna, thank you. Anna Coren with her report from Afghanistan about the fate of so many women there. Anna thank you.
When we come back, a bit of a head scratcher. Why did Philip Morris International, one of the world's biggest makers of cigarettes just buy a company which makes asthma inhalers?
Also, billions of dollars in debt and struggling to find a way out. One struggling Chinese company could send shock waves through the world's second biggest economy. We'll explain in a moment.
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VAUSE: Two up, two down. Now, too big to fail is back.
Chinese real estate giant Evergrande is struggling under a mountain of debt and wrestling on how to cut costs or sell assets or probably both before a default causes shockwaves in the world's second biggest economy.
Kristie Lu Stout has details now reporting from Hong Kong.
(BEGIN VIDEO CLIP)
KRISTIE LU STOUT, CNN CORRESPONDENT (voice over): It is the Chinese giant that lives up to its name. Evergrande is one of the biggest real estate groups in China. Owner of a football team, it has also built a football academy thought to be the biggest of its kind. It is also building the world's biggest football stadium -- a massive lotus flower that will seat 100,000.
And its latest claim to fame?
(on camera): The Hong Kong-listed Evergrande has become China's most indebted developer with liabilities worth more than $300 billion. And cash-strapped property firm is struggling to pay it back.
(voice over): Sending its stock price plummeting, prompting ratings agencies to downgraded its status and warning it could default which would sent shockwaves through China's economy.
(on camera): So how did Evergrande get into this mess?
MATTIE BEKINK, CHINA DIRECTOR, ECONOMIST INTELLIGENCE UNIT: It's built as many as 600,000 homes annually and it's a massive (INAUDIBLE) 56 times bigger now than it was a decade ago.
It's also strayed far from its core business. It's founded a colossal football academy, a bottled water brand which had been later sold, an electric car company.
STOUT (voice over): Disgruntled and desperate investors have protested at company headquarters in Shenzhen.
"They've cheated me out of all of my money, I have nothing left," says one unidentified investor.
The real estate giant said online speculation about its bankruptcy are quote, "completely untrue" adding "The company has indeed encountered unprecedented difficulties at present but the company is determined to do everything possible to restore the operation as usual and protect the legitimate rights and interests of customers." That has done little to pacify angry investors in Shenzhen.
[01:39:56]
STOUT: And elsewhere in China, video circulating on social media show what is described as an Evergrande protest in Hainan, in Nanchang. And in Chengdu, CNN could not verify the footage.
In August, China's central bank summoned Evergrande execs and warned the company to reduce its debt. Analysts say it is likely Beijing would intervene.
(on camera): Will the Chinese government step in to save it.
BEKINK: Here at the EIU we do ultimately expect that the government will intervene in the Evergrande's case as it will not allow the company's defaults to spread into the banking system.
NIGEL STEVENSON, ANALYST, GMT RESEARCH: The problem is that if large numbers of those buyers of properties don't receive their property, they're not going to (INAUDIBLE) to pay them, other property developers, people are going to lose confidence.
STOUT: There's just too much at stake. China's economy is sputtering because of its aggressive response to the delta variant and supply chain issues. Chinese markets have plunged as regulators target tech, education and other private enterprises -- a major default is the last thing China needs.
So Evergrande, living up to its name, has become too big to fail.
Kristie Lu Stout, CNN -- Hong Kong.
(END VIDEOTAPE)
VAUSE: Well, Bernie Madoff's victims are set to receive a little more money to help cover their losses. The U.S. Justice Department says those impacted by his Ponzi scheme are receiving in total another $568 million. The payout is going to make 31,000 victims, are coming from the Madoff Victims' Funds set up by the government. Federal officials say they have now recovered about 80 percent of the stolen money.
British health advocates are fighting Philip Morris International latest corporate acquisition. The company which owns the Marlboro brand has taken a majority stake in Vectura which makes medical inhalers used for treating asthma and other lung conditions. Philip Morris says it's part of a post-nicotine strategy. But dozens of U.K. charities, health experts, and many group have deep suspicions this deal is not what it seems. And they're calling on the British government to step in.
In a blunt letter to the health secretary Joe Churchill, they write, "The deal creates perverse incentives for Philip Morris to increase harm through smoking so it can profit again through treating smoking- related diseases.
Paul Billings with the American Lung Association -- one of the many organizations opposed to this deal. He joins us now from Silver Spring, Maryland.
So Paul, thank you for taking the time for being with us.
PAUL BILLINGS, AMERICAN LUNG ASSOCIATION: Thanks for having me on.
VAUSE: You know, in a way, it seems like we are being punked by Philip Morris. You know, they sell a product causing respiratory disease and causes death in many cases. Now it wants to get it on the back end of the deal and so dying customers (INAUDIBLE) can ease their suffering or save their lives. Is that pretty much where we are right now?
BILLINGS: It does appear that we have the world's largest tobacco company buying a respiratory health company that is working to develop inhalers and other ways to deliver respiratory medications that can help people suffering from lung disease, including people suffering from lung disease that is caused by and exacerbated by the products that Philip Morris manufactures and sells particularly to addict children who become ill as adults.
VAUSE: And with that in mind, the CEO of Philip Morris International was quoted in a company press releases saying this, "We are very excited about the critical row Vectura will play in our Beyond Nicotine strategy. Look forward to working with Vectura's scientists and providing them with the resources and expertise to grow their business to help us achieve our goal of generating at least $1 billion in net revenues from Beyond Nicotine products by 2025.
You know, to grow their business. Their business is, among other things, you know, this is Vectura selling asthma inhalers. Philip Morris has already got a lot to increase Vectura's sales by selling cigarettes to kids as you mentioned.
So clearly that's what they meant but I'm just wondering is there in some bizarre way here -- is there a synergy between these two companies in terms of inhalation devices which makes this deal make sense in any way at all?
BILLINGS: I cannot begin to understand what motivates executives for a tobacco company that sell a lethal product that kills so many of its users. What is most troubling to us is a company that has been built around improving the delivery of medication is now going to be run by a company that is selling addiction death and disease. And we fear that technology designed to deliver medication will now be used to addict more people more rapidly and increase their addiction to tobacco products.
VAUSE: And there is history for this when it comes to, you know, manipulating the level of nicotine to addict people to cigarettes. You know, they have been doing -- they were doing it since 1959 and denied it all along they knew what they were doing, right.
So this is not beyond the realm of possibility?
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BILLINGS: No, the cigarette is a highly engineered product to deliver a precise dose of nicotine. And Philip Morris is the best in the world at doing this through their Marlboro brand.
And now they are buying a company that has technological, intellectual property on how to deliver doses of substances to the lung through the body, and we fear what that will mean. You are giving a new avenue, a new technology, to a company that, you know, is in the addiction business.
VAUSE: And this raises the question about, you know, this company which has this uncomfortable relationship with the truth, has a credibility issue.
And it goes to the shareholders of Vectura and you know, why they decided to sell. I guess that's up to them and that's their decisions to make but at this point, is there anything which can be done to make sure to end this deal because it seems like it's a done deal right now?
BILLINGS: Well, we are exploring our options with our partners in the U.K. to see what can be done. I also think that the broader pharmaceutical industry needs to evaluate whether they want to do business with a tobacco company.
The pharmaceutical industry is in the business of selling health just like pharmacies are in the business of selling health. They shouldn't be selling cigarettes. They shouldn't be partnering with tobacco companies.
They should really be discerning of who they choose to do business with as should the entire medical establishment.
Tobacco use is the single biggest cause of preventable death in the United States and around the globe. We should be doing everything we can to end the use of tobacco and end that death disease and suffering that is caused by, you know, this company and its industry.
VAUSE: You know, the last time I saw was 8 million people worldwide died every year from cigarette smoke. So that's something to think about.
Paul, thank you for being with us. BILLINGS: Thank you very much.
VAUSE: Well for El Salvador, the adoption of bitcoin as legal tender continues to run into technical problems that leads to major protest. Even cattle ranchers, usually staunch allies of the president, are opposed to bitcoin.
CNN's Rafael Romo has more.
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RAFAEL ROMO, CNN CORRESPONDENT (voice over): They have come from across the country bringing their best cattle in high hopes for a tidy profit.
Welcome to Aguilares, a town in north central El Salvador where live cattle trading is a long time tradition. It's the kind of place where you look at people in the eye. When a deal is made, you shake hands and exchange cold, hard cash.
Other than feed and pasture, these cattle ranchers now have an additional worry. They know the government has legalized the new digital currency called bitcoin, and rumors are running rampant.
"The truth is that it is not that simple," this rancher says. "What if you don't know how much it is worth or how much it is going to get devalued tomorrow? What if it goes up? It's like gambling."
Earlier this month, El Salvador became the first country to adopt bitcoin as a legal tender in addition to the U.S. dollar. President Nayib Bukele says using bitcoin as legal tender will attract foreign investment, help lower commissions and remittances and give an alternative to people outside the banking system.
(on camera): Analysts for the International Monetary Fund which provided an emergency loan to El Salvador last year and is working on another, have warned that adopting bitcoin as legal tender pose serious risks to the country's financial stability and integrity.
When the law went into effect on September, the cryptocurrency market crashed losing billions in value. And the government's digital wallet for bitcoin has experienced several glitches that were still not fully fixed a week after the launch.
(voice over): The younger generation and some small business owners have embraced the cryptocurrency.
But others, like this protester, say bitcoin is a phony currency.
(INAUDIBLE) who's the president of El Salvador's medical association was among thousands of protests who took to the streets a week after the bitcoin law went into effect saying it is just another example of the president's dictatorial bent.
"We are worried about many decisions the government has taken, including imposing a currency (INAUDIBLE) said. The president's answer?
"There is no dictatorship here. What we have is a democracy. A lot of the protesters didn't even know what they were protesting about," he also said. "And the ones who knew, vandalized private and public property." Later suggesting that they're financed from abroad.
Back in the Aguilares, even those who support the president otherwise say introducing bitcoin was a mistake.
[01:49:51]
"Everything that he has done is good, at least what he had done so far," this rancher says. "But introducing this currency was not right. Which bank is backing it," he wonders.
"You have to be patient and get information about it so that you know how you can best use it and if it's convenient or not," this rancher says. "If the president is wrong then we are all wrong."
For now, most of these ranchers say they will stick to what they know -- a cash system that's worked just fine for generations. And even though some are open to using a cryptocurrency in the future -- their main worry is that bitcoin can be as volatile as this bull.
Rafael Romo, CNN -- Mexico City.
(END VIDEOTAPE)
VAUSE: Well, European scientists say the hole in the ozone above the South Pole is now larger than all of Antarctica. It appears every year between August and October it breaks down by December when ozone levels usually start to fall. But this year it is much larger than it usually is at this stage.
The hole is blamed on chemicals like chlorine and bromine mine which are being phased out. The ozone layer which protects us all from ultraviolet UV rays is still not expected to fully recover until at least the 2060s.
Well, coming up, an historic landmark in Paris is the subject of a very big cover up. And here on CNN NEWSROOM, a dream come true for the late artist Christo.
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VAUSE: Well, the late Bulgarian artist Christo had an obsession, wrap things on a spectacular scale, bridges, islands, buildings. So it was no surprise that the French President Emmanuel Macron was on hand Thursday for the inauguration of a project Christo dreamed up 60 years ago.
CNN's Saskya Vandoorne has more now on the cover-up of the Arc de Triomphe.
(BEGIN VIDEOTAPE) SASKYA VANDOORNE, CNN CORRESPONDENT: It took 90 climbers and 25,000 square meters of silvery blue fabric to transform Paris's most famous war memorial into a new work of art.
UNIDENTIFIED MALE: That cross of the four arches is incredible. You have a nonstop wind. And you cannot believe it, how the fabric above you will be moving like a living person because all of that will be also wrapped.
VANDOORNE: That was the vision of the late Bulgarian artist, Christo as he spoke to CNN in 2020 -- one of his last interviews.
Conceived 60 years ago when he was a young man in Paris the project's success is rooted even further in the past.
Paris' archives where the key to its construction, engineers pored over drawings of the 50 meter high monument, studying where they could drill into the 19th century structure.
ANNE BURGHARTZ, ENGINEER, SCHLAICH BERGERMANN: Some of the statues they have wings, they have swords, they have trumpets. So we build these cages around the statues to protect them from the fabric, from the climbers, from the construction site work.
VANDOORNE: Using textiles to transform historic monuments and landmarks is what made Christo and his late wife Jeanne-Claude famous. Small Islands off Miami covered in tutus of flamingo pink. The 16th century (INAUDIBLE) draped in golden sandstone. And Berlin's Reichstag covered in silvery gray.
The bill for wrapping the arc, more than $16 million -- funded through the sale of Christo's art. The installation will open Saturday. But many visitors and Parisians have already formed an opinion.
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UNIDENTIFIED FEMALE: There is engineering, there is art, there is poetism. And this kind of connects to everybody.
UNIDENTIFIED MALE: It's not really the kind of art that I like. But it's only for three weeks, so I'm ok with it.
UNIDENTIFIED FEMALE: What I didn't expect is that it is at the same time so monumental and so sensual.
VANDOORNE (on camera): The recyclable fabric is designed to evolve with the weather. The red rope, a poetic interpretation of the French flag. Years of planning and 12 weeks of round the clock work have gone into making a sketch come to life.
Wolfgang Volz who worked with the couple for 50 years is part of the team overseeing the project. The first time he has done so without them.
WOLFGANG VOLZ, PHOTOGRAPHER: I miss them now. But I will miss them tremendously in that fantastic moment when you see it -- it's done, you look at it and say, not bad.
VANDOORNE: Like all of Christo's artwork, it will be short-lived, just 16 days.
UNIDENTIFIED MALE: You cannot own it, you cannot buy it. It will be gone. I will never see it again. And that is also the magnetic force of our project. They're not something that stays.
VANDOORNE: The ephemeral nature of Christo's work, all the more poignant, for being brought to life after his death.
Saskya Vandoorne, CNN -- Paris.
(END VIDEOTAPE)
VAUSE: Finding some much deserved respect for the queen of soul with "Rolling Stone" magazine rewriting its list of top 500 songs for the first time in 17 years.
The list was created by polling more than 250 artists, songwriters and industry figures. And if you are wondering, here is the top 5.
Number 1, Respect by Aretha Franklin, written by the great Otis Redding. Number 2 "Fighting the Power" by Public enemy. At number 3 was "A Change is Going to Come" by Sam cook. Number 4 was "Like a Rolling Stone" by Bob Dylan. And rounding out the top 5 "Smells Like Teen Spirit" by Nirvana.
R-E-S-P-E-C-T, 2 minutes and 18 seconds of a powerful song.
Thank you for watching CNN NEWSROOM. I'm John Vause.
Please stay with us. Michael Holmes takes over at the top of the hour, a lot more CNN NEWSROOM after the break.
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MICHAEL HOLMES, CNN ANCHOR: Hello. And welcome to CNN NEWSROOM.
