Return to Transcripts main page

CNN Newsroom

Civil War Fears Intensifying In Ethiopia; Romania Reports Record Deaths From COVID-19; Dutch Government Brings Back COVID Measures As Cases Surge; COP 26 Climate Summit; Parana River Reaching its Lowest; Wall Street Rallies after Fed's Taper Decision. Aired 2-3a ET

Aired November 04, 2021 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:23]

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Hello, and welcome to have you is joining us from all around the world. You are watching CNN NEWSROOM. And I'm Rosemary Church. Just ahead. A standoff on the edge of Ethiopia's capital as fears of a real Civil War. They're intensify. Now all parties stand accused of crimes against humanity.

Germany experiencing a massive pandemic of the unvaccinated, and once again parts of Europe are struggling to contain COVID.

Plus, how decades of war and conflict in Iraq have made it one of the most vulnerable nations to climate change.

ANNOUNCER: Live from CNN Center, this is CNN NEWSROOM with Rosemary Church.

CHURCH: Thanks for joining us. Well, it has now been a year since the start of the conflict in Ethiopia's Tigray region and now there are growing fears, the situation could spiral into an all out Civil War. A diplomatic source tells CNN a combined rebel force is on the outskirts of the Ethiopian capital, and they have the firepower to be inside Addis Ababa within hours if they choose. Vigils were held Wedensday to mark the somber one year anniversary.

The same day the U.N. revealed a joint investigation had found possible war crimes committed by all parties in this conflict. And CNN's David McKenzie is following the story from Johannesburg where he joins me now live. Good to see you, David. So, what is the latest first on the rebel fighters poised to enter the Ethiopian capital?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, Rosemary, I think we have to be careful here. There are conflicting reports about the proximity of the OLA, the Oroma Liberation Army and the TDF. The Tigrayan defense forces to the Capitol. What is probably more significant at this time is that they are threatening the Capitol itself. After -- for many months, they were really on the TDF side trying to push the national forces out of that far north province. But now you face a scenario of two substantial rebel groups, one of which in the OLA has at least an affiliation with the biggest ethnic group in Ethiopia. Those groups traditionally not aligned appearing to align at this time. And why that is significant? Well, Prime Minister Abiy Ahmed, he has for a long time since coming into power saying that his aim was to unite Ethiopia into one national identity. Now you see this very fractured scenario that you possibly have the Tigray in defense force which is a very much stacked with experienced military commanders and the OLA, the largest ethnic group, at least affiliated with that group combining.

It really puts a major, major dent in Abiy's power structure in that country. So apart from any military threat that this group could pose to Addis Ababa, there's also just the political threat that this poses. A lot of talk right now that Abiy's days are numbered at Prime Minister. But he is digging in, understandably, he had a fiery speech yesterday marking the anniversary of the start of this conflict. Have you listened to his rhetoric.

(BEGIN VIDEO CLIP)

ABIY AHMED, ETHIOPIAN PRIME MINISTER (through translator): This pit, which is dug very deep, will be where the enemy will be buried, not where Ethiopia disintegrates. We will bury this enemy with our blood and bones and make the glory of Ethiopia high up again.

(END VIDEO CLIP)

MCKENZIE: Ethiopia has a substantial military, a national military with an air force. They certainly wouldn't roll over if there was an attack on the capital. But you must remember also from the point of view of regional politics, the African Union is based in Addis Ababa. There's a very large diplomatic presence there. The U.S. government calling on the non-essential staff to consider leaving at this time and for Americans not to go to Ethiopia.

This is a relatively swift change in Aby's fortunes who for months has said that he would unite Ethiopia and crush the opposition in Tigray. But I think this is a very different scenario for him politically. And he may be talking tough but it will be difficult potentially for him to get allies regionally in this conflict, if it is the case that this very big ethnic bloc has now turned against him in this conflict.

CHURCH: All right. Many thanks to David McKenzie for that live report. David Shin is the former U.S. Ambassador to Ethiopia. He is now a professor at George Washington University. He joins me now from Washington. Thank you so much for being with us.

DAVID SHINN, PROFESSOR, GEORGE WASHINGTON UNIVERSITY: Sure.

CHURCH: So, one years since the start of the conflict in Ethiopia's Tigray region, rebel fighters are now moving closer to the capital, Addis Ababa and in response, Ethiopia's Prime Minister is calling on his soldiers and civilians to defend the city with their blood. Where do you see all of this going? SHINN: I don't see anything good coming out of the situation at the moment. Both sides seem to be committed to a military ending the conflict. And I think that is just not going to really be possible. Even if one side or the other or to take control of Addis Ababa, there will be continuing conflict involving different ethnic groups in Ethiopia. So it will not be over. It's a very -- it's a very bad scenario at the moment and there doesn't seem to be any willingness to compromise by any of the conflicting parties.

CHURCH: And as this plays out, the United Nations released a report documenting atrocities on all sides during this year-long conflict. And the U.N. Human Rights Chief is warning that the situation is rapidly deteriorating. So what does the international community need to be doing right now before this destabilizes that whole region?

SHINN: I think more pressure has to be brought to bear on all of the conflicting parties. The government of Ethiopia, the tigray People's Liberation Front, now the Oromo Liberation Army, which is joined up with the TPLF and opposing the government in an effort to try to encourage them to sit down and discuss this conflict rather than continue fighting about it.

CHURCH: And for the benefit of those viewers who perhaps don't know the background to all of this, how did it start and what's the Ethiopian government's motivation and end game and that of the Tigrayan rebel fighters?

SHINN: Well, just to give you the short history of taking it back to 2018 when there was a change of government in Ethiopia, that ended basically a Tigrayan centric government that had been the most important component of government dating back to 1991. And that left a fair amount of resentment. The Tigrayans are only percent of the population and everyone knew that they had a disproportionate amount of power.

The Tigrayans saw the handwriting on the wall and essentially started returning to their homeland in Tigrayans region from the Capitol and other parts of the country. They set up the elections in Tigrayans region contrary to the wishes of the central government, which said they wanted to postpone all national elections. Tigray went ahead anyway, the elections were easily won by the TPLF. You then had a situation I think where the TPLF thought the government was going to send troops and to Togray region.

We don't know whether that's the case or not. And as a result, did a preemptive attack on the northern military headquarters in Mek'ele, the capital of Tigray region. And that basically started the war with the government forces.

CHURCH: And Ambassador, the U.S. Embassy and of course, the other nations represented, they are their advising their citizens in Ethiopia to get out. What's your biggest fear right now, as you watch this all play out?

SHINN: Well, basically chaos. I don't I lived in Ethiopia for three years. And I don't know how you end up evacuating such a large international community. I'm not even 100 percent certain that is the best approach to going forward. We don't know of course what the TPLF and the Oroma Liberation Army have in mind, should they reach Addis Ababa and try to take the town? I think even that is in question, in my view. But I think it may be a bit premature for a massive fallout from from Addis Ababa.

CHURCH: Former U.S. Ambassador to Ethiopia, David Shinn, many thanks for joining us.

SHINN: Thank you.

[02:10:03]

CHURCH: To the fight against coronavirus now as Romania reported a record number of COVID-19 deaths on Tuesday. One person is dying from the virus there every five minutes. Almost 600 On Tuesday, always at one of the country's largest hospitals are lined with body bags, and there are no ICU beds available for new patients.

And it's not just Romania. As you can see from these maps, there's a surge in new COVID cases and deaths in Europe. CNN's Kim kim Brunhuber looks at why the region is struggling to contain the pandemic and what countries are trying to do about it.

(BEGIN VIDEO CLIP)

KIM BRUNHUBER, CNN INTERNATIONAL ANCHOR (voice over): Protesters clashing with police in (INAUDIBLE) this week. They were angry over new COVID measures after the Dutch Prime Minister announced that starting November 6th masks will be mandatory inside most public spaces like museums and gyms. Citizens will also need proof of vaccination or a recent negative COVID test to get in.

In the Netherlands new COVID infections are surging, rising in the month since previous social distancing measures were eased. It's just one of several European countries fighting new waves of the pandemic in Germany infections, deaths and hospitalizations all growing. The health minister says the country is experiencing a massive pandemic of the unvaccinated. Now at least one border town is tightening rules as cases surge. Clubs and other entertainment venues will be off limits to anyone who hasn't been vaccinated.

In Greece, there were more than 6000 new COVID infections Wednesday, the country's most in a day since the start of the pandemic. Russia and Ukraine also reaching record high numbers of new infections. Some European countries like Spain, Italy, France and Portugal have avoided the same trend. But the continents overall average of new cases has been rising for more than five weeks, while infections seem to be declining in the world's other regions.

Tides are changing once again in the pandemic as countries in both East and Western Europe struggle with new waves. Kim Brunhuber, CNN.

CHURCH: The U.S. has crossed a tragic milestone but there is hope in the battle against coronavirus. More than 750,000 Americans have now died from COVID. That's according to Johns Hopkins University. And that's more COVID-related deaths than any other nation in the world. But many Americans are hoping the decision to approve the vaccine for children ages five to 11 will help cut the number of deaths and cases.

Children across the U.S. are now getting their first Pfizer shot. Something the U.S. President says will bring relief to parents all over the country.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: For parents all over this country, this is a day of relief and celebration. After almost 18 months of anxious worried every time the children are to childhood a sniffle or started to cough. Well, you can now protect them from this horrible virus because everyone always worried that was coming on. 28 million more young Americans are now eligible for the protection of a vaccine.

(END VIDEO CLIP)

CHURCH: Joining me now is Dr. Grace Newman, the head of the testing program at the South Central Family Health Center in Los Angeles. Thank you, Doctor for all that you do.

DR. GRACE NEWMAN, HEAD OF THE TESTING PROGRAM, SOUTH CENTRAL FAMILY HEALTH CENTER: Thank you so much for having me. It's my pleasure.

CHURCH: Thank you. So just hours after the CDC gave the green light for all kids five to 11 to get their COVID vaccine shots, parents were making appointments and kids were getting their shots. But we know that many other parents in the U.S. are not planning to vaccinate their kids. What's your best advice to them when weighing up risks versus benefits?

NEWMAN: That's an excellent question. I think parents need to talk to their pediatrician, need to get advice from the pediatrician, need to look at the science, need to weigh the risk and benefits before making a decision not to get their kids vaccinated.

CHURCH: But if a parent came to you and said, I'm very concerned, I don't want to do this. What would you say to them?

NEWMAN: I would say that the science really speaks for itself. There's hard data, hard evidence to say vaccine saves lives. Vaccine is much better than not getting vaccinated. So yes, I would definitely recommend it.

CHURCH: So let's talk about the crisis unfolding in Europe where a surge of new COVID cases and deaths is now moving from the east to the west into Germany in the Netherlands mainly because people are refusing to get vaccinated for whatever reason, despite having easy access to the shots. So we have the same problem here in the U.S. of course. So, how do you convince those people to get the shot and remind them of the dangers previously posed by diseases like polio, smallpox, measles, chickenpox, and mumps before those vaccinations were made available? Some of us have had three of those diseases is in our lifetime

[02:15:02]

NEWMAN: Yes. That's such an important issue and I think vaccine hesitancy is just a distraction to the real issue of lack of access to vaccines, lack of access to good health care. We have data to prove that vaccines do save life from historical data that you've just mentioned polio, other types of vaccines such as smallpox. Those data, guide us and give us the information and the, you know, the strength to know that this is what we should do the right thing is to get vaccinated.

CHURCH: Do you think somehow we're failing to offer public health announcements to people to explain this to them? Because obviously, some people are very forgetful. And I mean, most of us know somebody who had polio, certainly, if they're around my age, they would have known someone who had and survived polio and people who died from polio.

NEWMAN: Yes, absolutely. Our message has to be clear, loud and consistent. Polio vaccines save lives. Smallpox vaccine safe life. Coronavirus vaccine will save life. We need to re educate our population, we need to dispel some of the misinformation that's outside in the world wide web, you know, the Instagram, all that stuff, we need to make sure that our message is clear, loud and consistent.

CHURCH: And Doctor, while these richer nations deal with a population refusing to get the COVID shots, many people in Latin America can't even get access to these vaccinations. So -- these vaccines. So, how do you address that inequity? And what does the lack of access to vaccines mean in terms of cases and deaths in those areas?

NEWMAN: Yes. The lack of access is definitely an issue in poor countries. We need to -- as a nation, we need to be the model. We need to get ourselves vaccinated so that we can show that vaccines save lives so that we can also share this message with the poor nations that do not have the access. We need to share vaccines with them so that they too can get protected. This is a global issue. This is a global wide world issue that vaccines saves life and we need to get everybody vaccinated.

CHURCH: All right. Dr. Grace Newman, we thank you so very much for joining us.

NEWMAN: Thank you, sir. Thank you, ma'am.

CHURCH: Well, since the start of the pandemic, there have been reports of people trying to unfairly profit off the high demand for key medical supplies. Now the man at the heart of a CNN investigation into fake and use medical gloves is under arrest. Investigation found that millions of these substandard gloves were being sold to distributors in the U.S. CNN's Scott McLean has more now on the scam and the arrest.

SCOTT MCLEAN, CNN INTERNATIONAL CORRESPONDENT: The CEO of the time medical glove company Skymed was arrested in Thailand on Wednesday. Kampee Kampeerayannon is facing several fraud related charges. Thai police say that the Skymed Web site is a facade meant to attract foreign buyers. One of them was an American company called Rock FinTech which paid Skymed more than $6 million for hundreds of thousands of boxes of medical gloves but never received any.

Other U.S. customers told CNN that the Skymed gloves they received were substandard or even second hand. Thai police also say that in June, a Rock FinTech representative even went to the address where Skymed said their gloves were made but found no factory there. We interviewed kampee last week prior to his arrest and he gave inconsistent and contradictory explanations as to where its gloves were produced.

Eventually conceding that it has no tie factory but instead sources its gloves abroad. He also claimed that Skymed was the victim of unauthorized counterfeiting by its former distributor Paddy the Room which CNN found exported tens of millions of gloves to the U.S. Many of them substandard or even soiled and clearly secondhand. Police say Kampee denies all of the charges against him. CNN is attempting to reach out to him through his lawyer. Scott McLean, CNN, London.

CHURCH: Well, Police in Western Australia say the man suspected of kidnapping four-year-old Cleo Smith had to be hospitalized after harming himself while in custody. His injuries are not considered life threatening. The 36-year-old is expected to be charged in the coming hours. Police won't say what charges he will face but they believe he acted spontaneously and alone. Cleo Smith was rescued from a locked house Wednesday morning, not far from her own home nearly three weeks after vanishing from her family's campsite.

Well, the U.S. military says China's military buildup is outpacing anything seen before with its nuclear arsenal growing much quicker than anticipated. We'll explain what that could mean for Taiwan and the rest of the region after short break.

(COMMERCIAL BREAK)

[02:22:17]

CHURCH: An investigation into that U.S. drone strike that killed 10 civilians in Kabul has found execution errors were made, but says there was no violation of law. Seven children were among those killed in the August strike. The review found there was evidence children were at the site two minutes before the missile was launched. But the strike cell was not aware of that at the time. The deadly strike has only added to concerns over how the U.S. handled its chaotic exit from Afghanistan.

Iran has released footage of last month's alleged confrontation between its Revolutionary Guard and the U.S. Navy in the Gulf of Oman. The video shows what appeared to be two American warships next to a large tanker and smaller Iranian military vessels. Iran claims it stopped those U.S. ships from seizing Iranian crude oil on board the tanker. The Pentagon spokesman John Kirby says those allegations are absolutely false. And it was Iran that illegally seized a merchant vessel in the Gulf of Oman.

(BEGIN VIDEO CLIP)

JOHN KIRBY, PENTAGON SPOKESMAN: We monitor a lot of activity in that part of the world. It's not about waiting. We are reacting to false claims that the Iranians made today. So if you're asking me why am I talking about this today, because you're asking me about it today because the Iranians lied about it today.

(END VIDEO CLIP)

CHURCH: Despite the latest tensions Iran nuclear talks are set to resume at the end of the month. The seventh round of negotiations is scheduled to be held in Vienna on November 29th. The U.S. State Department says these talks will pick up exactly where they left off in June. Since then, Iran has elected a new president and assembled a new negotiating team to try and revive the 2015 Nuclear Deal. The talks are aimed at bringing the U.S. back into the agreement and getting Iran to comply with it.

The U.S. military warns that China's nuclear capability has advanced faster than expected, and the country could have 1000 warheads by 2030. That's five times what it has now and much higher than the Pentagon had projected a year ago. The annual report also notes with alarm that China is rapidly modernizing every aspect of its military with an eye on dominating the Indo Pacific region by mid- century. CNN's Oren Lieberman has the details.

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: In the latest China military power report from the Pentagon, the Defense Department focused partially on the rapid modernization of China's nuclear force saying the heavy nascent nuclear triad. Similar to the United States nuclear triad of air launched, sub launched and ground launched ballistic missiles.

[02:25:06]

LIEBERMANN: The estimate from last year that they could roughly double their force or stockpile of 200 nukes within 10 years. Well, that's old news now. Now the Pentagon says they could have 1000 nuclear warheads by 2030. And that comes from the speed with which they're modernizing and building out their nuclear stockpile and their nuclear options. But that's just a part of what's concerning here in the short term.

In the bigger picture over the long term, the China military power report says that by 2049, so before the midpoint of the century, China aims to supplant U.S. global influence and replace U.S. partnerships and alliances in the region with its own partnerships and alliances in the region. How disturbing is that? Well, Joint Chiefs Chairman General Mark Milley said it best at a -- the Aspen Security Summit on Wednesday.

(BEGIN VIDEO CLIP)

GEN. MARK MILLEY, CHAIRMAN, U.S. JOINT CHIEFS OF STAFF: We're witnessing, in my view, we're witnessing one of the largest shifts in global geostrategic power that the world has witnessed and it only happens once in a while.

(END VIDEO CLIP)

LIEBERMANN: One of the interim goals laid out in the China military power report is 2027 where China looks to build a system of systems within its military and modernize or at least advance modernization dramatically over what it is now. The China military power report, the Defense Department says a lot of that is aimed towards Taiwan and options that would give China when it comes to Taiwan. That would include blockading the islands perhaps an amphibious assault on Taiwan itself or in some of the outlying islands.

All of this modernization is also meant to build deterrence and essentially act as a warning sign against foreign intervention or any moves by Taiwan towards independence. A lot of that pointed straight at the U.S. Oren Liebermann, CNN in the Pentagon.

CHURCH: Phasing out fossil fuels is gaining momentum at COP26. The latest pledges out of Glasgow on cutting emissions. That's next.

Plus, Iraq's president says decades of war and conflict have contributed to the climate crisis in his country. Hear his message to COP26.

(COMMERCIAL BREAK)

CHURCH: Well, bringing the world toward cleaner energy and coming up with the financing to do it. The latest pushers at the COP26 Climate Summit. Ukraine and Chile are now among seven countries committing to ending their use of coal as early as 2035.

[02:30:00]

And the U.K. says 18 nations have made a separate pledge to phase out coal by not building or investing in new coal power.

A breakthrough on international financing of fossil fuels is expected to be announced in the coming hours. A U.K. official says at least 20 nations have agreed to stop funding projects abroad for not just coal but also oil and gas. A source close to the negotiation says the U.S. will be a part of the deal. Meantime, the world's least developed countries are calling on wealthier nations to follow through on their promise to deliver 100 billion in climate aid a year. The money was supposed to have started flowing last year, but distribution could be pushed back to 2023.

Hundreds of banks and firms representing the global finance industry are pledging trillions to help eliminate carbon emissions, the plan was spearheaded by the U.K. which has plans to become the world's first net zero financial center. Here is the British finance minister.

(BEGIN VIDEO CLIP)

RISHI SUNAK, BRITISH CHANCELLOR OF THE EXCHEQUER: I can announce that the United Kingdom will commit 100 million pounds to the task force on access to climate finance, making it quicker and easier for developing countries to access the finance they need. And we are supporting a new capital markets mechanism, which will issue billions of new green bonds here in the U.K. to fund renewable energy in developing countries.

(END VIDEO CLIP)

CHURCH: Well, are now to South America where the Parana River has reached its lowest level in decades due to a severe drought. The crisis is disrupting energy production and commerce. An environmentalist say climate change is contributing to the problem. CNN's Rafael Romo reports.

(BEGIN VIDEO CLIP)

RAFAEL ROMO, CNN CORRESPONDENT (voiceover): Winding through three different countries, the Parana is the second longest river in South America after the Amazon. It flows for nearly 4,900 kilometers, 3,000 miles through Brazil, Paraguay and Argentina. The Parana not only provides water for all three countries, it's a crucial waterway for Paraguay's commerce according to the country's director of the River and Ocean navigators Association. But since April, that commerce has been dead in the water due to the river's low levels.

JUAN CARLOS MUNOZ, DIRECTOR, RIVER AND OCEAN NAVIGATORS ASSOCIATION OF PARAGUAY (through translator): The impact to the Paraguayan foreign trade is very important, Munoz says, because 96 percent of this commerce is done through this waterways.

ROMO (voiceover): The problems caused by the low levels go beyond commerce. The Parana feeds two crucial hydroelectric plants. Itaipu, which provides power to both Paraguay and Brazil. And Yacyreta, which is shared with Argentina.

Lucas Chamorro, a chief cheer engineer at Yacyreta says, during the southern hemisphere's past winter, the Parana had its lowest water levels in more than 50 years, which meant that a 25 percent decrease in the power plants ability to produce energy.

MARIA JOSE VILLANUEVA, WORLD WIDELIFE FUND MEXICO: It is a very serious problem. It is --

ROMO (voiceover): Maria Jose Villanueva, a leader for Worldwide Life Fund on Mexico, an environmental organization says, drought conditions are affecting the wildlife of Latin America and explain serious problems like increasing wildfires in Brazil's Amazon.

VILLANUEVA: This is something that we are seeing exacerbated around the region, in Mexico to Argentina, the lack of rainfall that it's caused to climate change. But also exacerbated by the different drivers like land use degradation, deforestation and over exploitation of aquifers.

ROMO (on camera): Are there any other explanations different from climate change? VILLANUEVA: Droughts have happened all across the human and nature on the earth's history. However, if climate change is exacerbating the periods of lack of rainfall.

ROMO (voiceover): Last year, NASA published a map of severe drought conditions in South America, showing parched land in dark red.

Earlier this month, local media reported that a unusually powerful sandstorm have left at least six people dead in Brazil, a situation caused in part by severe drought conditions grappling the country Southeast.

And back in May, a surreal scene developed in Northwestern Mexico. For the first time in more than three decades, residents in Sinaloa State were able to visit the tombs of loved ones in a cemetery that had been underwater after a dam was built there in 1987. The country was going through one of its worst droughts in recent memory.

An April, Mexico's Water Authority reported 75 percent of its territory was experiencing moderate to exceptional drought conditions.

ROMO (on camera): A report by the Washington based American Society and Council of the Americas published over the summer stated that abnormally dry conditions in Argentina, Brazil, Mexico, and Paraguay threatened water reserves and economic recovery, a situation that may not recover itself, experts say, unless factors like deforestation, illegal mining, and overexploitation of natural water resources are halted. Rafael Romo, CNN, Mexico City.

(END VIDEO CLIP)

[02:35:00]

CHURCH: Iraq's president says war and conflict over the past four decades have made the country especially vulnerable to climate change. He described some of Iraq's environmental challenges in an important message for COP26.

(BEGIN VIDEO CLIP)

BARHAM SALIH, IRAQI PRESIDENT: Desertification affects 39 percent of our country's lands, 54 percent of our fertile lands are at risk of being lost due to salinity caused by the decline in the levels of the Tigris and Euphrates. 7 million Iraqis have already been affected by drought, climate change, and the risk of displacement.

(END VIDEO CLIP)

CHURCH: He is calling for international assistance to help tackle Iraq's climate crisis. So, let's bring in CNN meteorologist, Derek Van Damme. Good to see you, Derek.

So, you have been looking very closely at the impact of Iraq's climate crisis, why have you been seeing?

DEREK VAN DAM, CNN METEOROLOGIST: Yes, not just here in Iraq but also the entire Middle East as well, Rosemary.

In fact, the Middle East suffers from several adverse impacts from climate change, from declining rainfall, to sea level rise will, and you add in this increased demand from water from population growth as well as irrigation purposes, and you have a recipe going for disaster going forward in the future.

Just within the Middle East alone, 85 percent of the water in the Middle East is actually used for irrigation purposes. So, basically, what is happening is we are taking water from the ground, groundwater, faster than it has been replenished by the rain that falls from the sky. That is a potential problem, and we've seen it already within Iraq, the desertification of Iraq.

You heard the president of Iraq discussing that particular term. Well, what does it mean? It's actually the process by which fertile land becomes desert. So, that particular area of Mesopotamia, between the Tigris and the Euphrates River, that is known as Mesopotamia. And that particular region is very fertile, but it is dry enough. And this is a major driver of agriculture across Iraq and into much of the Middle East.

In fact, you've got a semi-arid to arid country, only 150 millimeters per year, that is not enough participation enough to replenish that amount that is being depleted from the ground within that area. So, we see this drying trend. In fact, we're seeing an annual loss of about 100 square kilometers, that is per year, that is equivalent to the size of Lisbon, Portugal of that farmable land, that agriculturable (ph) land within Mesopotamia.

So, a significant portion of Iraq being impacted by this drought, the longstanding drought. And of course, we continue to see that decrease in farmable land. Even in Iran, that same -- similar story is playing out across this area, groundwater depletion observed in about 77 percent of Iran's land area. So, they are also experienced this desertification impacts. You can see some dry riverbeds where fishing boats once lined these rivers. Well, now, they are stranded. And this is just one of the many scenes playing out across the Middle East as we speak. Rosemary.

CHURCH: All right. We appreciate you taking a closer look at that. Derek Van Damme, thank you.

Well, coming up after the show break, Wall Street rallies to a record high after the feds says it will start phasing out a stimulus that kept the U.S. economy afloat during the pandemic.

(COMMERCIAL BREAK)

[02:40:00]

CHURCH: A quick look now at some of the Asian financial markets one day after the U.S. announced it would begin scaling back its economic stimulus. Investors anticipated the move and have so far reacted positively. Well, the federal reserve's enormous bond-buying program helps support the economy throughout the pandemic, now the U.S. Central Bank is tapping the brakes on the stimulus measures to keep inflation in check. CNN's Richard Quest has the details.

(BEGIN VIDEO CLIP)

RICHARD QUEST, ANCHOR, QUEST MEANS BUSINESS: The thing about the fed is they don't like to take the markets by surprise. So, the decision to begin tapering now had been well telegraphed. The feds said that it would reduce the era number of bonds that it buys each month by $15 billion this month, and then reduce it even further the following months onwards and onwards. And so, a long period of bond-buying, quantitative easing designed to prevent a depression on the back of a pandemic comes to at least the beginning of the end.

And that is what this is, the beginning of the end. Because there is a long way to go. First of all, the fed has to stop buying bonds, then it has to start re-buying those bonds that are maturing. And finally, interest rates will start to rise. The time scale on all of this depends on inflation. And at the moment, inflation repressions (ph), as everyone is aware, are high.

The fed believes they are transitory, that they will disappear next year when supply chain eases up. But that is not a certainty and there are other economist and central blanks that believe this inflation is sticking and the fed will have to move quicker if it wishes. Richard Quest, CNN, New York.

(END VIDEO CLIP)

CHURCH: The Feds decision lifted Wall Street to new highs with all three major indices notching new records Wednesday. The Dow finished up about 0.3 percent, the S&P 500 rose 0.6 percent, and the NASDAQ 1 percent.

And thank you so much for joining us. I'm Rosemary Church. World Sport is coming up next. Then, I will be back in 15 minutes with more news from all around the world. You are watching CNN. Stick around.

(COMMERCIAL BREAK)