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Omicron Delivers Another Uncertain Holiday Season To Pandemic- Weary Americans; Super Typhoon Rai Slams Into The Philippines As Rescue Operations Get Underway; Kidnapped U.S. and Canadian Missionaries Released By Haitian Gang; Turkey Cuts Interest Rate again Despite Soaring Prices; Bank of England Becomes First to Hike Rates; Ten Years of Kim Jong-un; Chile to Hold President Run-Off Sunday; Refugees Making Waves in Their Adopted Country. Aired 1-2a ET
Aired December 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: This hour on CNN Newsroom, it's beginning to look a lot like last Christmas. With the highly contagious Omicron variant turbo charging the global pandemic, adding to the misery of a Delta variant surge of new infections.
24 hours after making first landfall, Rai continues to better the Philippines with powerful winds and heavy rain. Rescue efforts are underway.
And free, free at last but at what cost. Officials confirmed a ransom was paid for the safe release of the last Christian missionaries kidnapped two months ago in Haiti.
UNIDENTIFIED MALE: Live from CNN Center, this is CNN Newsroom with John Vause.
VAUSE: In just a matter of days, it seems the threat from Omicron has escalated as fast as the variant can spread. Around the world governments and public health officials are issuing grim warnings of a tidal wave of COVID patients in the coming weeks, adding to an already surging number of new infections caused by the Delta variant.
UK is now dealing with regular numbers of New Delhi cases. And with Omicron just getting started, health officials warned records will continue to be set day after day for weeks.
France has announced a ban on non-essential travel to and from the UK, effective midnight Friday, and British travellers with a compelling reason to visit France are required to spend 48 hours in isolation on arrival.
Queen Elizabeth has once again cancelled the traditional pre-Christmas lunch with extended family. And the English Premier League postponed one match Thursday, as well as five others scheduled for the weekend. And across the Atlantic on Broadway, the lights have dimmed on a number of big productions, including Hamilton and Moulin Rouge, as casting crew test positive for the virus.
And while the number of overcrowded infections in Britain is believed to be doubling every two days, Britain's -- British Prime Minister Boris Johnson says there'll be no national lockdown and unlike last year, there are no plans to cancel Christmas, at least not yet. CNN's Salma Abdelaziz has a report.
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SALMA ABDELAZIZ, CNN REPORTER (voice-over): COVID cases have once again reached record levels in the UK, with nearly 90,000 positive tests recorded on Thursday. Despite the worrying surge, Boris Johnson said Christmas is still on for now.
BORIS JOHNSON, BRITISH PRIME MINISTER: This is very different from last year, but what we have is the additional protection of the vaccines and the ability to test.
ABDELAZIZ: His chief medical officer sounded more cautious during a parliamentary committee on Thursday, and urged people to limit their socializing.
CHRIS WHITTY, ENGLAND'S CHIEF MEDICAL OFFICER: I think people should prioritize what really matters to them and then cut down on the things that don't.
ABDELAZIZ: More concerning for every one person infected. On average, they will infect three to five others, a health expert said --
DR. SUSAN HOPKINS, CHIEF MEDICAL ADVISER, UK HEALTH SECURITY AGENCY: With a doubling time of every two days the value for Omicron is estimated to be much higher. Very broad brush estimates of between three and five at the moment.
ABDELAZIZ: In Scotland, residents were asked to stay home as much as possible and warned that vaccines were not enough.
NICOLA STURGEON, SCOTTISH FIRST MINISTER: We are in a situation right now that no matter how fast we go with vaccines, this variant of the virus is at the moment running faster.
ABDELAZIZ: As a precaution over the rising cases Queen Elizabeth cancelled a pre-Christmas family lunch of Buckingham Palace source told CNN. The source said it was felt the lunch would put too many people's Christmas arrangements at risk if it went ahead.
And across Europe leaders are watching the UK battle with Omicron very closely.
France announced tourism from Britain would be limited and those arriving from the country would need a compelling reason for entry. Vaccination has also been ramped up with Italy now vaccinating children between five and 11. In Germany, expanding its booster campaign to avoid its health care system being overwhelmed. Across the region, government's preparing for a tidal wave of Omicron during the holiday season. Salma Abdelaziz, CNN, London.
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VAUSE: Dr. Larry Brilliant is with us now he's been on the medical frontlines for more than four decades, notably part of the WHO smallpox and polio eradication teams. And Dr. Brilliant, good to see you.
DR. LARRY BRILLIANT, FUNDER AND CEO, PANDEFENSE ADVISORY: Nice to see you, John. Thank you for having me.
VAUSE: Pleasure. Now, the U.S. already dealing with a COVID search driven by Delta. In the coming weeks, Omicron is expected to make what is a bad situation a whole lot worse. I want you to listen to the U.S. President Joe Biden. Here he is.
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JOE BIDEN, U.S. PRESIDENT: For unvaccinated, we are looking at a winner of severe illness and death on vaccinated for themselves, their families and the hospital they'll soon overwhelm. But there's good news, if you're vaccinated, you have your booster shot you're protected from severe illness and death.
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VAUSE: But here's the rub to that last part of the statement, almost 40 percent of the U.S. population is not fully vaccinated, less than 30 percent of those fully vaccinated have actually received a booster. So if boosters are the main defensive line here to Omicron, that means that this country will the 270 million people, in the words of the U.S. president are facing a widow of severe illness, and death feels like the early days of the pandemic all over again.
BRILLIANT Yes, I think that's right. I think that dividing it, the U.S. or any country into three categories, those who've never had the disease, and have never had a vaccine, those who have had three doses, and in between various shades of two doses had the disease, one dose had the disease, two doses didn't have the disease.
The group in the middle, which would have been adequately protected against Delta is now susceptible to Omicron. I think Omicron kind of looks at everybody that hasn't had three doses, as if to say, well, you're part of my market, you're my customer, I will infect you, you're only a little speed bump in my way.
But if you've had three doses, there's almost a qualitative difference. You go from 40 percent protected to 95 percent. So, lesson number one, get your third dose if it's available to you, if it's possible at all. VAUSE: But the U.S. government and many other governments around the world for that matter to find fully vaccinated as to Pfizer or Moderna shots, one J and J, should that now be revised to two shots plus booster?
BRILLIANT: Yes, of course, it should. I mean, it's just a matter of time. It's a matter also of language and the way in which the FDA looks upon the approvals. But there's no question from an epidemiological point of view fully vaccinated is three doses, and it may in due course, before doses.
VAUSE: There's also been sort of throwback, if you like, to the early days of the pandemic in terms of really stupid statements made by people in very senior positions like CEOs of airlines, in particular, Gary Kelly of Southwest and Doug Parker of America, here they are before Congress.
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GARY KELLY, CEO, SOUTHWEST AIRLINES: Yes, I think the case is very strong that mask don't add much if anything in the air cabin environment is very safe, and very high quality compared to any other indoor setting.
UNIDENTIFIED MALE: Mr. Parker.
DOUG PARKER, CEO, AMERICAN AIRLINES: I concur. The aircraft's safe place you can be.
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VAUSE: What is this magical air filtration device of which they speak? I mean, this was gobsmacking here, not just with Omicron out there, but with the travel season upon us for the holidays. It was unbelievable.
BRILLIANT: Yes. It's one thing to be safer than any other place. And that's different than being safe. So they are using MERV 14 or MERV 14 filters new rapid air exchange systems so they can exchange the all the air in the cabin very quickly. I do think that modern airplanes of which not every plane that you fly is have really good air conditioning and air exchange systems.
That's a very different thing than saying you're safe if you're inside of a tin can for 12 hours with 300 people who may or may not be carrying the virus. Be sure to be masked up when you're on an airplane. And please don't pay attention to the self-serving comments you just heard.
VAUSE: Yes, absolutely. Good advice to finish on. Dr. Larry Brilliant, thank you very much.
BRILLIANT: Thank you for having me.
VAUSE: A developing story now from Japan at least 27 people have died in a fire in a commercial building in the city of Osaka. Well, the cause is still unknown. There are reports it may have been deliberately set. The investigation is focusing on the fourth floor. Images from the scene earlier showed smoke coming from the windows as well as damage on that floor.
Strong winds torrential rain and flooding from Typhoon Rai continue to cause widespread damage and chaos across the Philippines.
In part, phone lines are downed, power is out, hampering ongoing rescue efforts. Still, the Coast Guard was able to save a one month old baby using a plastic tube in chest deep water floating the child to safety. More than 330,000 people right now are in government shelters, many leaving their homes ahead of Rai making landfall Thursday.
While the storm has weakened since then, officials want flooding and landslides remained a threat. Meteorologist Derek Van Dam tracking the system he joins us now live from the CNN Weather Center with the very latest, Derek.
DEREK VAN DAM, CNN METEOROLOGIST: Yes. John, we're getting some of these first images that you've shown on TV. Now just kind of investigating this a little closer, you can see all the leaves ripped off of the tree in the background here. This is indicative of course of a very powerful typhoon not to mention the destruction to the coastal communities with the storm surge.
[01:10:00]
So we're starting to get the bigger picture here of what's actually taking place, of course communications being knocked out across portions of Mindanao and into Visayas. Now the storm is moving towards the what is called the Palawan province and this area has the capital city known as Puerto Princesa City, and it has over 300,000 people that call that particular location home and they are getting absolutely walloped with extremely strong winds 185-kilometer per hour sustained winds right near the center of the storm, which is nearing that capital city as we speak.
Now according to the Philippine Meteorological Agency, this is known as PAGASA. A signal three is still in effect for the central portions of Palawan province, even the western portions of Visayas. That means that they anticipate winds in excess of 120 kilometers per hour, people need to seek shelter now.
You can see our computer models indicating just that winds will be extremely strong for the next three to six hours across that particular area before the storm pulls away from the central and southern Philippines enters the South China Sea. So very warm ocean waters across this area.
Where does it go from here? Very important question because some of our computer models show that the storm could potentially skirt the east coast of Vietnam and perhaps into the extreme southern sections of China near Hainan. You can see the forecast rainfall accumulation depending on exact track of the storm. We could see several, several millimeters of rain across eastern Vietnam in the days to come back to you, John.
VAUSE: Derek, thank you. Derek Van Dam there for the very latest. We appreciate that. Now more than the damage from this powerful storm, CNN's Vedika Sud following all these developments from New Delhi. So what do we know this hour? How extensive is this damage? How much you know, we will take before the cleanup begins.
VEDIKA SUD, CNN REPORTER: John still early to say how vast the damage is, according to disaster management and rescue officials. The focus still is on evacuating people. Now we have to remember there was just about 20 to 24 hours before the cyclone upgraded from a typhoon to super typhoon giving them very little time to understand how severe the damage would be on the eastern coastline and central Philippines.
What we're hearing like you also mentioned is communication links are down and rescue teams are actually using satellite phones to convey messages to each other and get to spots where people need help with evacuations.
What we also know is that there is a place called Siargio Islands on the eastern coast, it's popular for surfing, it just opened tourists last month. And that has been extremely battered by the super typhoon Rai as of this morning.
Now reports of officials getting to assess the damage will only come later today. They will be starting this afternoon, local time. But for now, it's known that the eastern coast as well as the central Visayas area where there is a place called Bohol has been severely affected. The flood -- flooding out there is massive and intense. It's as high as five feet. We're also hearing from the CEO of Red Cross, that people are on roofs in this area, and they're waiting to be evacuated.
What's also important to note here, John, is the fact that Philippines is very vulnerable to climate change, essentially, because of its geographical location. And because of the warmer oceans, typhoons are becoming more regular out there and more intense and the worry is the damage it's doing to the coastline, John.
VAUSE: Vedika, thank you. Vedika Sud there with the latest reporting in from New Delhi.
Erin Sikorsky is the director of the Center for Climate and Security. Before that, she spent 10 years working with the U.S. intelligence community. She joins us this hour from Washington. Welcome to the program.
ERIN SIKORSKY, DIRECOR, CENTER FOR CLIMATE AND SECURITY: Thanks so much for having me, John.
VAUSE: OK, now a new study from China's Shenzhen Institute has a very ominous headline, tropical cyclones in Asia could have double the destructive power by the end of the century, which is shocking. But it's not really a surprise. If it does prove true, is there a corresponding outlook on the level of social upheaval that comes with that kind of weather event? Is there a sliding scale, perhaps which links these two factors together? SIKORSKY: Sure. I mean, what will really depend is on the level of preparedness, right, that governments and countries have, because it's not usually just climate shocks alone, that cause social upheaval or political instability. But it's those climate shocks layered in, in countries that are already facing, you know, governance challenges where they haven't prepared for these types of storms and shocks and don't have a good plan for what to do or how to get ahead of it. They haven't trained their security services to be prepared to respond.
So it's certainly concerning. But the -- I would argue that the good news is we have these studies predicting these paths are the physical hazards and so it gives us a chance to get ahead of it in terms of the social and political and community response.
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VAUSE: Yes, at least the debate is it real is now over. Climate change, it's already been linked to some violent conflicts in Africa. Root cause according to the United Nations is a dramatic increase or decrease rather of water levels in Lake Chad, which has lost 90 percent of its surface area since 1963 due to overuse and climate change. The dwindling of water resources has led to fighting over what is left.
This seems to be a textbook example of what happens when there is failure to manage and failure to share a resource, particularly when that resource is very scarce.
SIKORSKY: Yes, absolutely. We see with in many different parts of the world. I mean, the Lake Chad Basin is a great example. But it happens elsewhere. Also, that as climate change, you know, reduces access to key resources, whether it's water, or agricultural, land, freshwater and a lot of places that it people need to move, they need to find new places to go where they can -- they can have a livelihood, and often those places already have populations there. You have competing populations coming together to try and use those resources.
And when you don't have strong governance, when you don't have good conflict resolution mechanisms in place already, it can lead to conflict and violence. And one of the challenges is many of the places around the world that are the most vulnerable to climate change are already experiencing conflict or some level of violence. They're already very have very low resilience.
VAUSE: Well, we just had, you know, series of twisters over the weekend, last weekend in the United States, because a huge amount of devastation and loss of life. And now according to a running tally of natural disasters, by the National Centers for Environmental Information, the U.S. has sustained 308 weather and climate disasters since 1980 were overall damages, costs reached or exceeded a billion dollars. The total cost of these 308 events exceeds $2 trillion.
So, explain to me again, you know, how this argument about environmental healthy and energy renewable based economies is actually just too expensive. Because these disasters that just a warm up, the heavy hitters are still to come. SIKORSKY: Right, exactly, you pay a little bit now or you pay a lot later, to change the energy sources we use, move to renewable energy and prevent the absolutely worst outcomes that we expect in the second half of the century.
I'm glad you brought up, you know, the United States, because so often when we talk about climate change and climate security risks, we talk about vulnerable countries and other parts of the world. But here at home, we face a lot of risks as well. And again, there's a responsibility to prevent the worst outcomes. And that is absolutely why we need to look at a path towards more renewable energy.
I will say though, that even if all emissions were cut tomorrow, we still have enough warming baked in that there are going to be risks that we have to deal with over the next 10 to 20 years. And so that's why adaptation and resilience is also critical. It's not one or the other, right? It's not either mitigation or adaptation. You've got to be able to do both to really get after the challenges of climate change.
VAUSE: It's here, it's real. It's getting worse and we got to do something about it. Erin, thank you. Thanks for being with us. We really appreciate it.
SIKORSKY: Yes, thanks so much for having me.
VAUSE: Still to come, a happy ending in Haiti for Christian missionaries kidnapped in October, but it comes with a sting (ph). Plus, Turkey's currency continues to plummet, prices continue to soar. The direct result of erdoganomics will explain in a moment.
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VAUSE: 12 hostages free Thursday after being kidnapped by an armed gang in Haiti and now being flown to the United States. The kidnappers initially demanded a million dollars ahead, or the hostages would die if their demands were not met. U.S. official confirms the ransom was paid, but not by the U.S. government. And according to a Haitian source, that amount was not even close to the original demand. Matt Rivers has more.
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MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT (voice-over): A moment two months in the making with the news that all 17 missionaries including 16 Americans and one Canadian kidnapped by arm gang members in Haiti are now free.
It started back on October 16th as the group was returning to their home base from visiting an orphanage east of Port-au-Prince. Among the missionaries representing Christian Aid ministries, five children, including an infant, a three-year-old, a six-year-old and two teenagers. The bus they were in got stopped by armed men as they drove through the suburb of Croix-des-Bouquets. (on camera): Several miles down that road there is where our source in the Haitian security forces says this kidnapping was carried out and in a more normal situation, we would drive several miles down that road and go see exactly where this took place.
But following the advice of both our Haitian producer and our security team, we're not going to go any further than this because they say it's not safe, down that road is the suburb of Croix-des-Bouquets, which is essentially completely controlled by the 400 Mawozo gang, the gang that authority say carried out this kidnapping.
(voice-over): As the group was being kidnapped, this WhatsApp message obtained by CNN was reportedly sent by one of the missionaries. Please pray for us. We're being harassed, kidnapped currently. They have control of our vehicle with about 15 Americans right now, ladies, men and children.
A few days later, the gang that took them seen here in an older video said they would kill the missionaries if they didn't get paid a ransom. As Christian Aid ministries quietly opened negotiations with the gang, we got some insight into what conditions might be like for those kidnapped.
We spoke to a French priest who'd been kidnapped by that same gang in Haiti earlier this year, who told us about one of the places the gang held him. He says it was like a dark hole like a prison cell the last place we were in with no windows. At the beginning, they were giving us food once a day, but by the end they stopped feeding us. They forced us to go hungry, he said, believing it was a negotiation tactic.
But the first sign of hope, two missionaries, both adults freed by the gang on November 21st. Then came three more fried exactly two weeks later, and the remaining 12 would soon follow.
Meanwhile, Haiti's kidnapping crisis goes on unabated, an overmatched federal government is unable to quell the gangs behind the crimes with total kidnappings this year nearing 1,000 according to a Port-au- Prince NGO tracking that data nearly 100 in November alone.
The vast majority of victims are Haitians, not foreigners. Thankfully, the ordeal for 17 foreign missionaries is over. But for many Haitians, the nightmare continues. Matt Rivers, CNN, Port-au-Prince, Haiti.
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VAUSE: When we come back here on CNN, the link between Taylor Swift and a COVID outbreak in Sydney, Australia. The very latest live report.
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VAUSE: Welcome back, everyone. I'm John Vause. You're watching CNN Newsroom. More than 2,000 new COVID infections were reported Thursday across the Australian state of New South Wales. Another daily record. For more now let's bring CNN's Steven Jiang reporting live on all this. So, Australia's been dealing with this some time. This is the second day in a row of record cases. And that zero COVID policy may have some cracks in it.
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right. That's why this is a alarming trend, John, because he's mentioned this a second in a row. They have broken a record in terms of new case numbers and the details are quite worrisome. While on Friday, they reported one death and 215 people hospitalized and 24 people in intensive care. And all of this, of course is happening as they had recently eased a lot of their COVID restrictions, lifting mask mandates as well as health QR code checks in many public places and then of course, omicron, this highly transmissible new variants struck. And this also proves to be at least in many cases, resistant to vaccines because New South Wales does boast (ph) one of the highest vaccination rate in the country. 93 percent of its population age 16 and above have been fully vaccinated.
So this really is now putting the local government in a bind, especially as we head into the holiday season whether or not to reintroduce lockdowns and other restrictions. So far they're trying not to take that option but health authorities already really issuing some very dire warning. They're saying their modeling showing a new case numbers could reach 25,000 per day by January.
And one thing worth noting, of course, a lot of those new case numbers are being driven by large gatherings, super spreader events, high school graduation events, and parties and nightclubs, including one Taylor Swift themed dance party. And as you know, one of her most famous songs is called I Knew You Were Trouble, I think in the minds of a lot of people that seem to apply to Omicron as well, John.
VAUSE: Yes, Taylor Swift. OK. Steven Jiang, thank you very much. Steven Jiang live for us in Beijing.
Britain's surging COVID infection rate is now causing havoc to the schedule for the English Premier Football League, with players and officials testing positive. Another five matches scheduled for the weekend have been postponed. We have more now from World Sport anchor Don Riddell.
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DON RIDDELL, CNN WORLD SPORT (on camera): The Premier League is fast approaching what is traditionally the busiest time of the season. The festive period is renowned for a slew of games and nonstop excitement over Christmas and the New Year.
But things could be different this time, Premier League clubs have been reporting an increase in positive cases of COVID-19 among their players and staff and an increasing number of games have been suspended. Some are now even calling for a total suspension of the league until all of the players are healthy again. THOMAS FRANK, BRENTFORD MANAGER: The COVID cases are going through the roof in all the Premier League clubs everyone dealing with it, everyone have a problem this moment in time to postpone this round and also the Carabao Cup round. We give everyone a week at least to or these -- I don't know exactly number four or five days to clean and do everything in the training ground so everything is fine, so you break the chain in every club.
RIDDELL: Although a couple of games were played on Thursday night, Liverpool and Chelsea both lined up without key players who'd been signed lined by the virus. And Tottenham's game at Leicester didn't happen at all. Looking forward half of the weekend's fixtures have now been postponed as the UK continues to grapple with the new variant of the disease.
[01:29:53]
And of the games that are still scheduled to be played, there are reports of positive cases in many of those clubs. So it really wouldn't be a surprise if Thursday's action is the last that we see in the premier league, for sometime.
Back to you.
JOHN VAUSE, CNN ANCHOR:: Well as inflation takes hold around the world, financial markets have been waiting for months to see which central bank will be first to raise interest rates.
And now, a surprise winner. The Bank of England increasing rates by a quarter of 1 percent. While, the increase is significant, it's unlikely to do much to slow 5 percent inflation, a decade high for the U.K.
A day earlier, the U.S. Federal Reserve out with three interest rates increases to next year. the European Central Bank has not chosen not to raise rates for now. But from March will scale back a pandemic stimulus program.
And then there's uncertainty over the omicron variant, which many fear has potential to derail a fragile global recovery.
Right now the global inflation champion among major economies is Turkey. Prices are increasing at an annualized rate of 21 percent. At the same time the currency, the lira, is falling like a rock.
The end result of Erdogan-nomics, the misguided and nonsensical economic policies of Turkey's president where up is down and down is up and the end result is widespread misery and many living hand to mouth.
Here's CNN's Jomana Karadsheh.
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JOMANA KARADSHEH, CNN CORRESPONDENT: As expected by many, the Turkish central bank on Thursday lowered interest rates yet again. And we saw the markets reacting to this with the Turkish lira hitting yet another record low.
This has been the story of the Turkish lira for weeks, for months right now. It has lost about half of its value so far this year, more than 30 percent of that in November alone.
Expert economists blame this on the Turkish president's unorthodox monetary policies. When countries are facing inflation, what they try to do cut back inflation is increase interest rates.
Not Turkey. The Turkish president has long been a staunch opponent of interest rates that he argues cause inflation. He says it is an evil that makes the rich richer and the poor poorer.
And he has made clear that the path forward for his country, according to President Erdogan, is to continue these rate cuts that, these interest rate cuts that he says will stimulate growth. They will create jobs. They will increase production, exports, bring in more tourism and investment. Something that a lot of experts and economists have questions.
The Turkish -- the Turkish president is promising results in the next few months. Telling people that they will see the results of this economic plan of his in about six months' time.
It has been an incredibly difficult time for ordinary Turks who are facing inflation that has hit more than 21 percent.
What that really means is that people, a lot of Turks feel that they are getting poorer by the day. They are waking up to find their incomes, their salaries, their life savings losing value, sometimes on a daily basis.
As the price of pretty much everything has been increasing, sometimes on a daily basis. People say that they are struggling to make ends meet, and that they can no longer afford a lot of the basics.
To that effect, we heard the Turkish president also on Thursday saying that Turkey will be increasing the minimum wage by about 50 percent. But to put that into context, that is still less in U.S. dollars than what it was worth at the beginning of this year.
This could provide some relief in the short term, but the question is, for how long, as experts are warning that there really is no's and in sight, with this current economic policy to rising inflation.
Jomana Karadsheh, CNN -- Istanbul.
(END VIDEOTAPE)
VAUSE: Rana Foroohar is CNN's global economic analyst, as well as a global business columnist and associate editor for "The Financial Times". Good to see you again.
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Great to see you.
VAUSE: Ok. So let's say with what's happening in Turkey, you know, it's a textbook case it seems of what not to do to bring down inflation.
Here's the Turkish president, listen to this.
(BEGIN VIDEO CLIP)
RECEP TAYYIP ERDOGAN, TURKISH PRESIDENT (through translator): We are determined to put an end to the uncertainty that has arisen due to the fluctuations in the exchange rate and the exorbitant price increases as soon as possible.
(END VIDEO CLIP)
VAUSE: He actually said that. He seems to be following in the footsteps of most autocrats surrounded by yes men too terrified to call him out and say, you know, you are the problem, Mr. President. You know, cutting interest rates is insanity.
[01:34:55]
FOROOHAR: It's absolute insanity when you have prices spiraling out of control, as they are in Turkey. I mean you have red lines at this point. Working people are not able to buy basics.
Cutting interest rates is actually the exact opposite of what you do in a situation when you want to bring inflation under control.
You know, Erdogan has been quoting Islamic banking laws, Koranic scriptures that forbid, you know, making money with interest to justify this but to be honest, I think these are much more political statements than any kind of coherent economy theory.
And I think he's desperate. You know, I think this is a person who does not know what to do with Turkey's very volatile, very dicey economy right now. And so he's hoping he can score some quick political points which is clearly not working when people are on red lines.
VAUSE: Yes. It's a desperate situation for a lot of people right now in Turkey.
The flip side of this, you know, the Bank of England raising official rates by a quarter of 1 percent to try and rein in the highest inflation there in a decade. Governor Andrew Bailey also added a note of caution to anyone expecting deflationary pressure from the impact of the omicron variant. Here he is.
(BEGIN VIDEO CLIP)
GOVERNOR ANDREW BAILEY, BANK OF ENGLAND: It certainly, I think, can have, you know, quite an effect on activity in the economy. We're already seeing it in some of those what we call the fast (ph) indicators -- mobility, you know, foot fall and retail outlets, restaurant bookings and so on.
It's not however clear whether it will cause inflation pressure to come down, or even go up. I mean that's also a very important factor for us.
(END VIDEO CLIP)
VAUSE: So explain in very simple terms, because maybe the president of Turkey will be watching, why it is that the governor of the Central Bank of England basically cut interest -- sorry, increased interest rates instead of cutting them when the inflations rise (ph).
How does that work? How does that support the currency, which may be in free fall, I don't know, like the lira?
FOROOHAR: Right. Well you know, basically, when you have prices rising, you want to constrict the amount of credit in the economy. You want to help reduce borrowing. You want to sort of reign in a situation that's gotten a bit too hot.
And you do that by taking money out of the system, and that's what raising interest rates are all about. It's about tightening monetary policy, rather than loosening it as we've seen, certainly for the last decade, in some countries, you know, many more years than that.
One of the issues, though, is when you do it and how do you do it? We have quite an asset bubble in places like the U.K., certainly in the U.S. and there is a worry that if you start to raise rates, stock markets tend not to like that.
However, this is what you have to do to bring prices under control. So, you know, it's interesting when the U.K. announced their decision, when the U.S., actually, a few days ago the central bank said we are going to hold back on bond buying.
We're going to maybe look to do three rate hikes next year, the markets were ok with it because I think that what they didn't like was the uncertainty. And a sense that oh my gosh, we could have runaway inflation, are the central bankers watching this?
VAUSE: Yes. well, unlike, you know, the Bank of England and the U.S. Fed -- the European Central Bank, taking a more dovish stand on inflation saying an interest rate increase next year is unlikely. And here is their outlook for 2022.
(BEGIN VIDEO CLIP)
CHRISTINE LAGARDE, EUROPEAN CENTRAL BANK PRESIDENT: Inflation is expected to remain elevated in the near term, but should ease in the course of next year.
The inflation outlook has been revised up. But inflation is still projected to settle below our 2 percent target over the projection horizon.
(END VIDEO CLIP)
VAUSE: You know, the Fed raised their outlook as well, up from 2.2 percent I think to 2.5. That was seen as being overly optimistic by a lot of people. So where does leave the Europeans. FOROOHAR: Well, you know, one of the crazy things that's happening right now that's making it very difficult for all central bankers to manage inflation, is that there is not a synchronized recovery, right? So Europe is in a different place that the U.K., than the U.S.
And so, central bankers are trying different things. They're going in different directions. Now what happens, and you sort of heard this in that soundbite from the governor of the Bank of England. It can create these sort of asynchronous pressures where, you know, you push a little against inflation and you go too far. And then prices start to swing in the other direction.
We are in a really delicate moment right now, John. A lot of economists actually think that we are going to be in for kind of a bifurcated environment where you could see prices going up, prices going down many times in the next few years.
So, I don't think it's the 70s. I am worried about food and fuel costs for -- particularly for working people. But I also think it's possible that you can see a deflationary supply shock at some point in the next year or two.
VAUSE: Wow, it's going to be a rollercoaster, huh? So buckle up.
FOROOHAR: Indeed. Buckle in.
VAUSE: Thanks, Rana. Good to see you.
FOROOHAR: Nice to see you.
VAUSE: You too. Take care.
So, it's been 10 years already. 10 years since the brilliant comrade rose to power after the death of the dear leader, from one Kim to another.
[01:39:57]
VAUSE: When we come back, the more things change in North Korea, the more they stay the same. Nowhere (ph) into political (INAUDIBLE) -- draconian crackdowns, and menacing threats to neighbors and perceived enemies.
(COMMERCIAL BREAK)
VAUSE: 10 years ago today, one dictator died and another rose to power. In North Korea they gathered to honor their dear leader, the late Kim Jong-il, who ruled with an iron fist for 17 years.
And when he died the family business was handed to his son, Kim Jong- un. Since then, North Korea has launched more missiles -- illicit missile test rather than ever before.
And Kim made history, meeting three times with U.S. President Donald Trump. But despite some changes, much remains the same for the people of North Korea. Paula Hancocks with the facts and a decade of The Little General.
PAULA HANCOCKS, CNN CORRESPONDENT (voice over): October, 2010, Kim Jong-un was introduced to the world as North Korea's heir apparent. A warning to expect another domestic obsession for Kim's family.
The following year, in December, Kim Jong-il died and his son took control.
JOSEPH YUN, FORMER U.S. SPECIAL REPRESENTATIVE FOR NORTH KOREA: I was in the State Department when we heard, Kim Jung-il had died, his family died. And we thought goodness, is this it? Essentially, what 25-year-old is taken over? 26 year old taking? And you saw him kind of looking bewildered as he walked by the hearse.
HANCOCKS: Speculation of instability, or an opening up by a leader briefly educated in the west, should die down -- once what's purges began as Kim consolidated power.
YUN: We saw him, you know, essentially having his uncle, who was almost like a regent, being executed, summarily executed. And then of course, a few years later, his older half brother being killed -- Assassinated in an airport in Kuala Lumpur.
Kim Jong-un: over saw more nuclear missile tests and his father and grandfather combined over the past 10 years. Intense development and launches, making North Korea far more than just a regional threat.
ANKIT PANDA, SENIOR FELLOW CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: Many of the developments that we saw North Korea complete during Kim Jong-un's 10 year so far were initiated by his father and his grandfather.
So there is a story here that involves all three Kims. But certainly Kim Jong-un will be remembered in North Korea for crossing the most important threshold which include bringing the United States into range with ICBMs.
HANCOCKS: Intercontinental ballistic missiles, a new version paraded just last year.
In January of this year, at the eight party Congress, Kim Jong-un announced his weapons agenda. Hypersonic missiles, submarine-launched ballistic missile among them. Testing this year reported to be from that very wish list.
PANDA: If I were North Korea, I would focus on doing one thing, or two things, or three things and doing those well. But what we see in North Korea is really more than 10, around 15 potential nuclear delivery systems under development.
[01:44:58]
PANDA: It's really remarkable.
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Little Rocket Man.
HANCOCKS: Tense exchanges between Kim and then U.S. President Donald Trump brought the peninsula closer to military confrontation than it had been in years.
Both sides blinked and more than a year of unprecedented diplomacy ensued. Kim achieving what his predecessors could not, meeting a sitting U.S. president.
YUN: He appeared quite confident, talking with Trump one on one, as leader to leader. And also, you saw him doing things, that you don't normally expect a communist dictator to do.
He was walking around at the marina area. Kind of waving at people, and taking selfies.
HANCOCKS: Three meetings with former President Trump, five with China's leader Xi Jinping, and three with South Korean president Moon Jae-in. Kim Jong-un is well established on the international stage.
DUYEON KIM, SR. FELLOW, CENTER FOR NEW AMERICAN SECURITY: I think he has really tried hard and pretty much has succeeded in trying to be perceived as this normal leader of a normal country. And you know, really, putting his stamp, his mark on old policies.
HANCOCKS: His pledge to revive the economy however remains elusive. International sanctions, and closed border due to the COVID-19 pandemic have crippled the country, already considered one of the world's poorest.
The U.N. said this year around 40 percent of the nations suffered food insecurity before the pandemic and that has only increased. Adverse weather and bad harvests pushed Kim Jong-un to admit this year, quote, "The peoples food situation is now getting tense."
CHEONG SEONG-CHANG, SENIOR FELLOW, SEJONG INSTITUTE: The biggest difficulty North Korea is facing now is that even North Korea doesn't know how long this isolated situation will last. Kim
HANCOCKs: Kim Jong-un's health has kept expert and intelligence agencies guessing. South Korea's National Intelligence Service told lawmakers Kim has lost some 20 kilos, 44 pounds but appears healthy.
Photos over the span of recent months show a significant change. Assumed health scares earlier in the rein spark fevered speculations of who might proceed him. That has now calmed down.
YUN: I have seen beyond 10 years -- 20, 30, 40 years. Assuming his health hold up.
HANCOCKS: 10 years into his rule, Seoul spy agency says they believe Kim is beginning his own brand of self idolization. Removing the photos of his predecessors from a key meeting, and starting a new concept called Kim Jong-unism.
Our peoples first, our nation's first, self reliance, really trying to differentiate himself from his father and grandfather's.
HANCOCKS: A metaphorical coming of age. His predecessor introduced their own isms at a certain point. (INAUDIBLE) Kim Jong-un is just starting to stamp his title, on the country he inherited.
Paula Hancocks, CNN, Seoul.
(END VIDEOTAPE)
VAUSE: In Australia, a rare but not unheard of accident has claimed the lives of five children their inflatable bouncy castle became airborne, lifted up by strong gusty winds, the children eventually falling about 10 meters to the ground below.
Many have now gathered at makeshift memorials laying flowers and sharing in the grief. Four other children survived and they're now in a serious condition in hospitals. This was meant to be a celebration of the end of the school year, in the state of Tasmania.
Voters in Chile head to the polls on Sunday for a run-off election between one candidate from the far left another from the far right. It's the most polarized election Chile has seen since returning to democracy in 1990.
CNN's Rafael Romo has more on that and how this political division is playing out in individual lives?
(BEGIN VIDEOTAPE)
RAFAEL ROMO, CNN CORRESPONDENT (voice over): It's a signature that would've been unthinkable only a decade ago.
To then Sebastian Pinera who for many years opposed it signed the law earlier this month that allows same sex couples to marry and adopt.
"To freedom," he said, "is built by acknowledging that we are all equal when it comes to dignity. And that it should include the freedom to love.
The new law gives espousal benefits to couples who are part of the civil unions, like Evelyn Morales and Jacqueline Paez.
(on camera): What does the law mean to you?
"If anything happens to me, I know my baby will be taken care of", Morales says. Paez can now legally adopt a couple's child, and get parental rights.
But Chile's national debate about same-sex couples is far from over. It's one of several contentious issues driving voters, as the South American country gets ready to hold the runoff election on Sunday.
"Love shouldn't have borders or restrictions," says Gabriel Boric (ph), a 35-year-old leftist presidential candidate who says if he wins, he will fight to preserve the rights of the LGBTQ community.
[01:49:58]
ROMO: His right wing rival, Jose Antonio Kast (ph) says that while he respects the rule of law, he believes marriage should be between a man and a woman.
Chile is still dealing with the COVID-19 pandemic, which has killed nearly 40,000 people in the country of 19 million.
And in the fall of 2019, the country was also rocked by a series of deadly protests over economic inequality.
ROBERT FUNK, ASSISTANT PROFESSOR OF POLITICAL SCIENCE, UNIVERSITY OF CHILE: What we've seen in this election campaign is that one of the main factors has been fear. On the one hand, we have the fear of violence, fear of crime, fear of more violent protests.
And on the other hand, on the side of Boric (ph) and his voters, there's fear of a kind of authoritarian regression.
ROMO: The country Funk says is as polarized as it's ever been which explains why, out of a field of seven, voters chose two candidates from the extreme right and left to advance to the runoff election.
(on camera): Regardless of who wins the election, this will be the first time since Chile's return to democracy in 1990, that the next president won't come from the traditional parties. The winner of Sunday's run-off election will take office in March, replacing current president Sebastian Pinera here at La Monera presidential palace for a four-year term.
ROMO (voice over): "The choice is between freedom and communism," says right-wing candidate Kast. Boric, his leftist rival says voting for Kast, is like asking to return to the 1970s, repressive dictatorships of Augusto Pinochet.
Chilean voters will face a tough choice at the polls between two extremes on Sunday.
Rafael Romo, CNN -- Santiago.
(END VIDEOTAPE)
VAUSE: Well, a refugee in Italy getting his voice heard.
After the break we'll meet the migrant who's encouraging other to get involved in their adopted countries.
(COMMERCIAL BREAK)
VAUSE: Facebook parent company Meta says it's identified a huge network of (INAUDIBLE) Iran spying-for-hire firms snooping on influential people around the world.
The social media giant says no government is directly involved but instead, surveillance for hire groups from China to Israel use spyware and fake social media accounts to monitor politicians, journalists and dissidents in more than 100 countries. Meta says hundreds of fake Facebook and Instagram accounts have now been taken down, about 50,000 people are notified they were being tracked.
Well, thousands of refugees who fled across the Mediterranean not only face danger at sea but they often have a difficult time adjusting, be accepted in their new homes. But one migrant in Italy is trying to bridge the gap between his fellow travelers and Italians.
As CNN's Ben Wedeman reports, he's using his new role in local government.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Today Abdullahi Ahmed walks the corridors of power, local power, as an elected member of Turin's city council.
This 33-year-old native of Somalia, has come a long way since 2008 when he stepped ashore in Italy after a perilous seven-month journey across desert and sea.
[01:54:53]
WEDEMAN: "I arrived here when I was 19 years old," he says. "Without a family, I didn't know Italian. I didn't know anyone here."
Under the gaze of the once-high and mighty in the Sala Rosa of Turin City Council, Abdullahi insists migrants shouldn't shy away from public life.
"I've always believed you can't be a foreigner forever," he tells me. "You have to become a well-informed active citizen, working for the future of your city and society."
Abdullahi wasted no time. He became fluent in Italian, founded an NGO to help raise awareness about the challenges facing migrants. Wrote an award-winning book about his experience, helped his siblings complete their higher education back in Somalia, and ran for local office. Not bad for one stranger in a strange land.
In recent decades, Italy's migrant population has grown dramatically, changing along the way what it means to be Italian.
Something Pakistan-born community activist Adrian Malik-Sher and friend of Abdullahi knows only too well.
ADRIAN MALIK-SHER, PAKISTAN BORN COMMUNITY ACTIVIST: One Italian should be like black, one Italian should be like brown, one Italian should be white -- why not?
WEDEMAN: Tunisian born baker (INAUDIBLE) voter for Abdullahi in the last local election.
"Now we're going to give you something to do," he tells Abdullahi. 32 years in Italy, Hamai (ph) sees the presence of the migrant in local government as a step forward.
"Now maybe, our voices will be heard," Hamai tells me. "In the past, we weren't heard at all."
Finally, new Italians are starting to raise their voices and are being heard.
Ben Wedeman, CNN -- Turin, northern Italy.
(END VIDEOTAPE)
VAUSE: Thank you for watching CNN NEWSROOM. I'm John Vause.
Please stay with us. The news continues after a short break with Kim Brunhuber.
I'll see you next week.
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