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Boris Johnson Rejects Calls for His Resignation; U.S. Lawmakers Suggest Using SWIFT Against Moscow; U.S. Braces for Strong Nor'easter; Prince Andrew Demands Jury Trial in Giuffre Lawsuit; Campaign Underway to Reopen Delhi Schools. Aired 4:30-5a ET

Aired January 27, 2022 - 04:30   ET

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

[04:30:00]

ISA SOARES, CNN ANCHOR: Salma Abdelaziz joins us now live with the latest. And Salma, you know, my heart aches for Lobby And Emma Jones' families. It's clear they are angry, they're furious, and they want something to happen here. We are, of course, waiting for that Sue Gray report, which we have been promised for days now. What can we expect? Will Boris really step down? Because he seemed pretty adamant that he's holding on to the reins here.

ABDELAZIZ: That's a very good point. And I think you're right, they want something to happen here. And what they want to happen here is quite simple. They want the rules that everyone else in this country had to follow, the rules that police enforced, the rules that people got ticketed for, got -- had to pay fines as high as 10,000 pounds for. They want those rules to be applied to the people who set the rules, to the very government that set the rules.

But it is not going to be up to the public here, Isa. You have two- thirds of the British public in the latest snap polling wanting the Prime Minister to resign after these allegations. But it is all going to come down to the Conservative Party. And there's two bits of key information that are going to help them make that critical decision as to whether or not they continue to support Prime Minister Boris Johnson or they take the steps to remove him.

The first bit of information, the Sue Gray report. This is a report written by a senior civil servant who has for weeks now been looking into these allegations of partying, we expect that eminently. I know I've been saying that for a while. But we really do any day now expect that report to be released. It's supposed to provide that timeline that blow by blow of what happened, who was there, and most critically what the Prime Minister Boris Johnson know about the parties -- Isa. SOARES: And I know you stay posted as soon as, of course we have got

the Sue Gray report we shall bring it to you. Salma Abdelaziz with a very powerful report there. Thanks, Salma.

We are learning new details about the federal investigation into Republican Congressman Matt Gaetz. The Florida radio host and key witness in the case is now cooperating with the U.S. Justice Department after pleading guilty in a separate case. His lawyer says he told investigators what he knew about the allegations against Gaetz including sexual contact with a minor, sex trafficking and obstruction of justice. Gaetz has denied all wrongdoing.

Some consider it a powerful way to punish Russia if it invades Ukraine. Experts say it would deal a painful blow to the Russian economy. Russia says it would back fire on the West. We'll explain SWIFT when we come back.

Plus, the U.S. on alert for strong winter weather this week.

PEDRAM JAVAHERI, CNN METEOROLOGIST: And a potential blockbuster snowstorm in the works. Possible nor'easter here and winter weather alerts in advance of it across portions of the Northeast, for as much as a foot and a half or more of snowfall in store. We'll talk about this and exactly where this is going to play out. Coming up in a couple of minutes.

[15:35:00]

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SOARES: Welcome back to CNN NEWSROOM. I'm Isa Soares. If you're just joining us, let me bring you up to date with our top stories this hour.

In a few hours, U.S. President Joe Biden and Supreme Court Justice Stephen Breyer expected to appear together at a White House event. Breyer set to announce his retirement, paving the way for a replacement. The White House says President Biden will nominate a Black woman in his place as promised.

And the U.S. and NATO have delivered a written response to Russia over the Ukraine crisis. The document outlines areas of progress for Russia including arms control, transparency as well as stability. Of course, we'll have much more on those two stories at the top of the on "EARLY START" in about 25 minutes or so.

One of the biggest deterrence against a Russian invasion may not be a military weapon at all, in fact. It is being called SWIFT, which is a secure network that financial institutions use to move money right around the world. U.S. lawmakers and others have suggested cutting Russia out of the system and make it nearly impossible for global financial institutions to send money in and out of the country.

The move could be a punch in the gut really for the Russian economy, including oil and natural gas companies, but Moscow is warning it could back fire. Let's get more on this. Anna Stewart joins us now. And Anna, until now we have been hearing so much about unprecedented sanctions if there is an incursion. But some believe this could be more effective. Talk to us exactly about how SWIFT works here.

ANNA STEWART, CNN REPORTER: Yes, last night Secretary of State Antony Blinken said, again, he and EU leaders are discussing sanctions, but we don't know what is on the table. But this potentially is the most damaging to Russia's economy. SWIFT is -- essentially will underpin financial transactions all around the world. It's used by 11,000 financial institutions across 200 countries.

Now, disconnecting Russia from SWIFT would be extreme and it would have devastating consequences, frankly, for the economy. Because you can see capital outflows from any firm or bank within Russia that relies on foreign financing. You could see lots of currency volatility, and also in 2014 when this was first really floated, I guess, as an idea with the annexation of Crimea, the finance minister then said it would see the economy in Russia shrink by 5 percent.

So, this is a really interesting economic tool, but the problem is the potential fallout. Both in terms of the financial contagion that you could see. It has been used successfully, for instance, with Iran, relating to their nuclear program back in 2012. But Russia is very different, it's a much bigger economy. It's really interconnected in terms of financial markets, and EU, for example, is the biggest foreign investor in Russia. You know, in 2019, the FDI investment valued at some $350 billion. So, you could have fallout there.

You could also, Isa, have retaliation. And I think that is possibly the biggest concern when looking at this kind of option, particularly with energy. And the fact of the matter is Russia holds huge power when it comes to energy security, again particularly in Europe, the EU relies on Russia for over 40 percent of its gas imports, 25 percent of oil. So that is the concern. And it was really interesting, you know, the German foreign minister and a German newspaper last week said this is the biggest stick, but it's not necessarily the sharpest sword.

SOARES: Yes, I mean, this is U.S. lawmakers thinking about it, and like you pointed out, Anna, Europe probably feels very different to this idea. Anna Stewart there for us. Thanks so much, Anna.

[15:40:00]

A winter storm expected to have winds as strong as a hurricane and snow measured in feet is headed for parts of the Northeastern United States. Meteorologist Pedram Javaheri breaks down what to expect. Good morning, Pedram.

PEDRAM JAVAHERI, CNN METEOROLOGIST: Yes, good morning, Isa. Weather going to get very interesting this weekend across parts of the Northeastern United States. And if you look at the map now, just about nothing going on with the exception of some lake enhanced snow showers and few scattered showers around portions of Florida, at least on the eastern half of the U.S. And the lake snow showers is kind of a telltale sign of what's ahead of us. Frontal boundary that is setting that into motion here, eventually going to set the stage for the wintry weather we're expecting here. But notice the alerts already in place, eastern Massachusetts,

portions of Rhode Island. The National Weather Service here already prompting these winter weather watches for potentially as much as a foot and a half of snowfall or about that amount.

But what we're looking at here is that that's the region that has the highest probability of seeing significant wintry weather. There comes a frontal boundary, here comes a low-pressure system up the eastern seaboard. Put this together with the colder air back behind this frontal boundary and I'm here to tell you it is one of the coldest air masses in years across portions of the U.S. That together prompts the potential for wintry weather.

Now, where does the storm system end up? That's still up in the air. Is it going to be close towards the coastline? Is it going to limit the amount of snow showers? Is it going to be too far away or is it going to be in that prime zone that we've talked about in recent days? The models have had a really tough time here. And gradually, in fact, wanted to push this a little farther toward the East. So that placement really will be key here.

Breaking down the models here side by side, look at the significant variabilities. In fact, the latest run of the models for the American model almost entirely takes New York out of any potential significance of wintry weather, while the Europeans stay firm that we'll have widespread coverage, especially along the Eastern Seaboard, along the coast. The highest amounts across portions of Massachusetts.

Now regardless of how much snowfall comes down, we know the winds here are going to be impressive. Storm surge threat going to be very high. And coastal flooding also going to be in place. Of course, with snowfall, you can also have blizzard-like conditions. So, all of this will be fine-tuned over the next 24 or so hours -- Isa.

SOARES: Pedram, thank you very much.

Icy weather in Indiana is causing accidents -- as you can see here. A FedEx truck was left dangling off the bridge. Police confirmed it collided with another vehicle as they lost control due to the slippery conditions. One of the drivers was sent to the hospital, but later released. And just seven miles up the road, a van hit a guardrail after skidding across two lanes. No other drivers were injured.

Still to come right here on the show. Prince Andrew wants a jury to decide his fate in the sexual abuse lawsuit. Max Foster joins us live with the details next.

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SOARES: A man accused of the murder of a Houston area officer has been caught and brought back to the city. He was arrested in Mexico and handed over to U.S. authorities before being transferred to Houston law enforcement. Oscar Rosales is accused of shooting and killing Harris County Corporal Charles Galloway during a routine traffic stop. According to authorities, Rosales was brought back to Houston.

Prince Andrew's legal team is demanding a jury trial in the sex abuse lawsuit brought against him by Virginia Giuffre. She claims she was trafficked by Jeffrey Epstein as a minor and forced to have sex with his friends, including the Prince, who has repeatedly denied the allegations, making it formal in a filing on Wednesday.

CNN's Max Foster joins me now from Dubai with the latest. And Max, we are getting this morning a -- starting to see really what type of defense Prince Andrew's team will put forward here. Talk us through the legal plan of attack from his team.

MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, I think, Isa, it's really a statement of intent, really. So, he says he wants a jury trial. Giuffre's team have already asked for that. So that's really a statement of, you know, the scale of a trial he's willing to take on really. And then he goes through dozens of points, paragraph by paragraph, really taking all the allegations that Giuffre has made against him and dismissing them, trying to get case thrown out.

And if not, then he's going to argue them clearly. Prince Andrew denies that he was a co-conspirator of Epstein and all the Epstein trafficked girls to him is really the headline from his lawyers. There are all these other points where he uses slightly different terminology. He says -- the Prince will say there lacks sufficient information to admit or deny the allegations.

So really questioning other allegations. And one of the really interesting ones there is the photo. The famous photo of Prince Andrew with his arm around Giuffre with Ghislaine Maxwell in the background. And he says there, you know, it lacks sufficient information for him to admit or deny the allegations. Really questioning the authenticity of that photo. He even says, he denies the allegation that Giuffre says which is that Maxwell was a close friend of his.

So, he's using this top legal team to go through every single detail of all the allegations and trying to tackle them. But he's clearly really fighting this, probably not, Isa, what the royal family would like to see. They want this all to go away and would probably prefer to have an outcome. There is no suggestion he's going for that at this point.

SOARES: Seems very much he's going on the attack here. Max Foster for us in Dubai. Great to see you, Max.

Parents in Delhi say enough is enough when it comes to pandemic school closures. Have a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The implications are I would say catastrophic.

(END VIDEO CLIP)

SOARES: Still ahead, the reason they say it is doing real damage to children's education. That is next. [15:50:00]

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SOARES: In India, there's a push for schools in Delhi to reopen. They've been closed for almost all of the pandemic, with students missing hundreds of days of in-person learning. And now some parents are stepping up a campaign to get children back in class. Vedika Sud is live for us in New Delhi this hour. And Vedika, put this into context for us -- I mean Vedika. How long have children been out of school here?

VEDIKA SUD, CNN REPORTER: Well, according to parents who've actually signed a petition and handed over a memorandum to the deputy chief minister of Delhi, their children have been out of school for almost 600 to 650 days since the outbreak of the pandemic, which means they have barely been to school, Isa. And this is especially for the younger children and students who have missed out on actually (INAUDIBLE) of school according to a petition that these parents have filed with the Delhi government.

They have around 1,600 signatures of parents on them, demanding and requesting the Delhi government to open schools once again. They say there are a lot of social benefits of children going to school, which their kids are missing out on.

We've spoken to educationists who call the implications of long-term schools being shut catastrophic for the children. And according to UNESCO, India is one of the countries leading the list when it comes to the longest time away from offline school. Which means being in school physically and learning from teachers, and obviously being a part of a larger setup with other friends and community and understanding things better than being on online classes which have been an impediment for many to understand the processes of education, according to experts.

We've spoken to parents. They have mentioned a lot of challenges that their children are facing. Let's just listen in to one of the petitioners who's also a parent in this case.

(BEGIN VIDEO CLIP)

DHANINI MATHUR, INDIAN PARENT: For my 5 1/2-year-old, even though he has access to devices and the internet and has parents at home and grandparents who can supplement learning, nothing can really substitute for being in school. Like I said earlier, the give and take in the playground, that I cannot recreate that at home.

(END VIDEO CLIP)

SUD: On Wednesday, the daily cases in Delhi were reported to be almost 7,500. Coming back to a few weeks ago, Isa, it stood at over 20,000. These parents are now saying let our children go back to school, at least start a hybrid system if nothing else -- Isa.

[15:55:03] SOARES: Yes, Vedika, 600 days is a long time and the impact, of course, it has on their mental health. Appreciate you being with us. Vedika Sud there for us in New Delhi.

SUD: Thank you.

SOARES: 400 years ago, the mere accusation of witchcraft was enough to get someone hanged or burned at the stake. Thousands of innocent men, women and children died in Europe as a result of the witch hunts. The vast majority of those victims were women. Now efforts are under way across Europe to address those historic wrongs. In northern Spain, in Catalonia, where prosecution was especially severe, the Parliament in Catalonia has voted to officially pardon hundreds of people unjustly executed as witches.

And the Kansas City Chiefs felt mighty generous after their team won big against the Buffalo Bills Sunday night. A children's hospital in Buffalo, New York says its received $13 donations from the thousands of Kansas City supporters. As of Wednesday, the total had reached more than $250,000. The $13 donation comes from the 13 second drive the Chiefs made to send Sunday's game into overtime. The Chiefs won the game and will play in the AFC championship this weekend.

Let's play "Jeopardy," the answer, Amy Schneider. The question, whose amazing streak on the U.S. game show just came to an end? Schneider had crushed the competition for 40 straight days, the second longest run by anyone in the answer and question show's history. No more. She admits -- the librarian from Chicago who beat her was faster on the buzzer. Don't feel bad for Amy. The engineering manager won more than $1.3 million during her streak and she'll never forget what's Bangladesh, the clue she missed in the tricky "Jeopardy" final.

And that does it for us here on CNN NEWSROOM. I'm Isa Soares in London. Thank you for your company. "EARLY START" with Christine Romans and Laura Jarrett is up next. Do stay right here with CNN and I shall see you tomorrow. Bye-bye.

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