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CNN INTERNATIONAL: President Biden Signs Executive Order on Abortion Rights; Strong U.S. Jobs Report; Former Japanese Prime Minister Shinzo Abe Assassinated; Abenomics Aiming to Overhaul Stagnant Economy; 40 Towns and Villages Under Attack in Donbas; Ukrainian President Zelenskyy Visiting the Front Lines; Ukrainians Coming Back to the Homes to Rebuild; Global Impact of Russia's War; Britain Searching for Boris Johnson's Replacement; Rishi Sunak Running for Conservative Party Leadership; Defense Secretary and Former Finance Minister favorites in leadership. Aired 1-2p ET

Aired July 08, 2022 - 13:00   ET

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

[13:00:00]

PAULA NEWTON, CNN INTERNATIONAL HOST: Hello, everyone. A warm welcome to you. I am Paula Newton. And you are watching CNN NEWSROOM live from New York.

Now, Japan in shock at this hour and in mourning after the assassination of former Prime Minister Shinzo Abe. Minister Abe was shot in broad daylight while giving a speech on a street in Central Japan, that moment caught on camera.

And a warning now: The video is, of course, disturbing. You can see Mr. Abe speaking to the crowd, when two loud shots rang out. Smoke filled the air. You see it there. Now, police detained the suspect, a 41-year-old man, at the scene. He confessed and has been charged.

Mr. Abe was rushed to the hospital, but, unfortunately, he was declared dead hours later. Doctors say the bullet that killed the longest-serving Japanese prime minister was -- quote -- "deep enough to reach his heart."

Blake Essig gives us more details now about Japan's dark day.

(BEGIN VIDEOTAPE)

BLAKE ESSIG, CNN INTERNATIONAL CORRESPONDENT (voice-over): Japanese Prime Minister Shinzo Abe was speaking at a campaign rally east of Osaka on Thursday when chaos ensued.

Two shots can be heard. Abe is hit the chest and neck, the weapon, a handmade gun, lying on the ground. Bystanders tried to aid the former prime minister before he was rushed to the nearest hospital. But soon news broke, he had succumbed to his injuries and died at age 67.

HIDENORI FUKUSHIMA, PROFESSOR, NARA MEDICAL UNIVERSITY (through translator): There were two bullet wounds. He was in a cardiopulmonary arrest after damage to large blood vessels in the heart. We took resuscitative measures, but, unfortunately, he died at 5:03 p.m.

ESSIG: Police have arrested the suspect, a 41-year-old man who did not flee after the shooting, a rare occurrence in Japan, a country with one of the world's lowest gun rates.

FUMIO KISHIDA, JAPANESE PRIME MINISTER (through translator): He loved this country and constantly looked beyond the current generation, working hard for a brighter future of this country, leaving behind many major successes in various categories.

ESSIG: World leaders also condemned the assassination.

ANTONY BLINKEN, U.S. SECRETARY OF STATE: We really, really mourn a loss, mourn a loss for his family, a loss for his friends, a loss for the people of Japan, a loss for the world.

ESSIG: E.U. Commission President Ursula von der Leyen remembering Abe as a great democrat. In South Korea, the president said Japan's longest-serving P.M. was a respected politician that will stay in Japan's history.

Shinzo Abe's assassinate assassination now a black dot in that history, a violent act of crime that is due to send ripples of shock across the country.

Blake Essig, CNN, Tokyo.

(END VIDEOTAPE)

NEWTON: Now we want to bring in CNN's Selina Wang.

Obviously, shock. I can't help but look at that comment from the current prime minister, Fumio Kishida, who really seemed stricken by this. And I'm sure that's mimicking what's going on around the country. But, crucially here, what more are we learning about the suspect? He's now in custody. But do we know anything more about a motive?

SELINA WANG, CNN CORRESPONDENT: Absolutely, Paula, shock, disbelief unfathomable in a country like Japan that is considered one of the safest in the world.

Now, we have learned from the police conference that the suspect has confessed to committing the act, to shooting the former prime minister, Shinzo Abe. We have learned he's a 41 unemployed man and that he admitted that he hold grudges -- he holds a grudge against a specific organization and believes that the former prime minister was a part of it.

The police declined to give any more details. There are now 90 investigators currently investigating this case. We also know that they raided the suspect's house. Abe was shot at 11:300 a.m. local time while he was giving this campaign speech.

And, hours later, we learned that he died. The medical examiners had said that he died from excessive blood loss. And that, Paula, of course, sending shockwaves not just across Japan, but around the world. He was a towering political figure domestically and abroad.

He was a deft political operator, which is really underscored by the flood of condolences from leaders from around the world, saying that they considered him to be an ally, to be a close personal friend, cultivating relationships with former President -- U.S. President Obama, as well as former U.S. President Donald Trump, which really speaks to the kind of leader that he was, here in Beijing as well, sending shockwaves.

[13:05:20]

We have heard condolences from the Foreign Ministry, but we have yet to hear any official statement from China's supreme leader, Xi Jinping --Paula.

NEWTON: Yes, and, unfortunately, that is significant.

Selina, we know you have lived in Japan in the recent past. Obviously, we're talking about the Japanese people being shaken. And that means no matter their political stripes, right? Violent crime so rare, let alone any gun violence, in Japan. What do you think the repercussions from this will be?

WANG: Yes, Paula, I lived in Japan right before this posting. I only moved to Beijing a few months ago.

And everybody feels very safe and secure. So it is heartbreaking to see that happen in this kind of society. I was always struck by how often I'd see young children alone in a big metropolitan city like Tokyo walking the streets alone at night, on subways alone, in taxicabs alone, because it is that kind of safe society.

So this assassination of one of the most important political leaders in Japanese history, this has really shaken the national psyche here. It is culturally unfathomable that something like this could have happened. People are still digesting this hours and hours after the news has come out.

Gun violence is virtually nonexistent in Japan. In all of 2021, there was only one related gun death. Yes, that is one. Guns are extremely difficult to get. And potential buyers have to go through a lot of hoops in order to get one, passing a written test. They have to do a marksman exam. They have to do a very rigorous background check. It's incredibly difficult to get one.

So, in this kind of very safe society, where gun violence is nonexistent, this is going to really shake the national psyche, as well as cause changes, because, compared to other countries, like in the U.S., political leaders in Japan, they do have a fairly light security.

And this is going to bring questions about whether or not that security needs to be beefed up for sitting and former senior political leaders.

NEWTON: And that's why it is important as well that police get an indication of what the motive might have been.

Selina Wang, we will leave it there for now. Thanks so much.

Now, for added perspective on this, we want to bring in Yuki Tatsumi. She's director of the Japan program at the Stimson Center, a research institute in Washington, and previously worked as the special assistant for political affairs at the Japanese Embassy. And she joins me now from Tokyo.

And what a day it has already been there for Japan. Obviously, the entire country must be in a state of mourning. What perspective do you want to tell us in terms of taking the measure of the man, but also the measure of how shocking this is for Japan right now?

YUKI TATSUMI, STIMSON CENTER: It is incredibly -- it is incredibly shocking.

This really unfolded really quickly over the course of the day. In terms of taking stock of what Mr. Abe has done for the country, I think I would point out first and foremost about his role as the diplomat in chief, if you will, in terms of reaching out to countries, not just with the United States, but then with the other countries that Japan has been building this relationship, but then has not -- not at the intensified level as Mr. Abe does.

He really put Japan on an international map back again. So, I think, in terms of the area of foreign policy, his contribution was -- frankly, it's just priceless and immeasurable. And I'm not quite sure how to -- how the country will recover from that.

NEWTON: Wow. You really think it's that deep of a shock.

It's interesting here, because you're speaking about Abe as a statesman in office, but now even out of office, right? I mean, he retained that influence literally to his last breath. I mean, given that these were elections in the upper house, why did he choose to stay so involved in politics?

TATSUMI: I really believe that, when he left, he still felt like they were mission unaccomplished, if you will. And he just continued to speak out for his own belief of where Japan as a country should go.

And there were disagreements about the direction that he was suggesting. But I think there was a great appreciation that he was a political leader who was not afraid to show the vision that he really hoped to -- hoped for Japan to happen, and regardless of whether that might be sometimes politically unpopular and politically very difficult, but still needs to be done in terms of Japan's evolution as a country.

[13:10:24]

NEWTON: Yes. And you are so right to point that out, because, at times, his policy could be divisive, especially in terms of its nationalism, its security policy, obviously, in the post-World War II environment How do you think his death may influence this going on?

TATSUMI: So, it's a little bit too early to tell.

His successor, Prime Minister Kishida, certainly has picked up his baton in terms of Japan's continued international engagement.

So we will see how that goes. And we will see how the election that's coming up in two days will turn out for Mr. Kishida. But I think one thing for sure is that his passing, as tragic as it was -- and it is really unbelievable for me to be here in Japan on this day, watch the situation unfold.

And I -- like you said, I'm still digesting and figure out how to make out of this -- that, hopefully, that will lead people to think about actual risks that our political leader, regardless of where you are, is facing when someone is running for public office and is not afraid to stand up for what he or she believes in.

NEWTON: You make such a good point, because they are really taking note of this in so many democracies around the world. I mean, I know we often compare it to the United States, but, in other democracies, whether it's in Europe or places like Canada or Australia, former prime ministers are also not subjected to huge amounts of security.

Do you think that this was actually an attack on the process? I know it's early to say, but, obviously, if politicians of all stripes have to change the way they communicate with people, do you think it will have a lasting impact?

TATSUMI: It could.

But, like you said, Paula, we're still looking for the arrested man's motive. Hopefully, this is just an isolated incident who's disgruntled about the situation that he himself is currently in and it doesn't really reflect on any kind of systemic -- systemic movement that Japan has been going through without many of us noticing.

But even if that's the case, you're right. I mean, it does absolutely give up political leaders here a moment of pause to see whether to -- whether the current system of protecting their political leaders at the highest office and who, after serving that time, has been enough.

And it is certainly very, very different from the -- how the United States protects former presidents. It's much lighter. But then it also goes kind of against with the grain of our political leaders, who really want to go in, into the people, who wants to have a more personal connection with the voters.

And this happened at such a unique time, where there was a -- it was literally two days away from the election, where all the political leaders across the political spectrum were really getting into -- amongst voters, try to have much personal connection as -- with the voters and supporters as much as possible.

So I think it takes a little bit of time after the election happens for this to all settle down in terms of lessons learned about the security that needs to be provided, and how the political rally like this, the security parameter around this needs to be handled.

NEWTON: Yuki Tatsumi, I'm going to leave it there for now. But you have really given us some insight into what is national grief at this hour in Japan. We thank you for staying up so late for us on what is going to continue to be a very shocking few days. Thanks so much.

TATSUMI: Thank you for having me.

NEWTON: Now, leaders and diplomats right around the world, of course, expressing shock and horror at Abe's assassination.

CNN international diplomatic editor, Nic Robertson, joins me now.

And I know you have been following all of it.

You just heard Yuki Tatsumi, obviously, as a Japanese scholar, sitting there trying to make the measure of it, but also President Biden, right? I mean, he was just talking about this a few months ago, and was very blunt, saying, look, I'm stunned.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, and the world is, because you just don't expect it.

Somebody who walked so large on the world stage, who's been so much president on the world stage is suddenly removed from it in Japan, in Japan, because it just doesn't -- this doesn't happen there.

[13:15:09]

Abe, when he came to office as his second term of prime minister, 2012, and he ran all the way until 2020, when he -- because of illness, he had to step down, he really decided to put Japan on the international map. In the first two years, he visited almost 50 countries. He was the first world leader to go to India and share Republic Day with the Indian leadership. Narendra Modi one of those who was very quick to respond to his to his shooting with sadness and condolences.

We have heard from Jens Stoltenberg as well, NATO's secretary-general, saying that he was a defender of democracy. Just look at where NATO is today, needing this alliance with Japan, needing a Japan that is strong, that has a built a rebuilt defense force, as Shinzo Abe had done during his time in office, to the point that, at this latest NATO summit just last week, the Japanese prime minister was invited.

Japan had really become hugely important right around the world, the European Union as well, Ursula von der Leyen describing him as a champion of multilateral world order. So, these accolades, these really pay tribute to what Secretary of State Antony Blinken described as Shinzo Abe's vision.

He said he was a man with vision. And that, I think, is framed best by looking at what he did. What Abe decided to do with Japan a decade ago has arrived Japan on the world stage as a much more rounded international player, with a much stronger defense force at a time when its democratic democracy-loving allies around the world need it in a world that is increasingly divided for and against China.

NEWTON: OK, Nic Robertson, we will have to leave it there. Appreciate you weighing in on this. Thanks so much.

Still to come for us tonight: As Japan's longest-serving prime minister, Shinzo Abe, knew several U.S. presidents, as Nic was just saying, we will have a live report from Washington to see how leaders there are reacting to Abe's assassination.

(COMMERCIAL BREAK)

[13:20:05]

NEWTON: Around the world, of course, shock, sadness, reactions at this hour over the assassination of former Japanese Prime Minister Shinzo Abe.

Now, in the U.S., Abe had notable relationships with numerous leaders. That includes presidents Barack Obama, Donald Trump and, of course, now Joe Biden.

CNN senior White House correspondent Phil Mattingly joins us now from the White House.

And, remember, right, I know you do, Phil, the fact that Biden was vice president during that Obama administration, and he traveled, had what we call a real working relationship with Abe. And I know they really rolled up their sleeves to try and get things done there.

And before we get to reaction, I also want to look at a G7 photo which I know you remember from 2018, which is Angela Merkel with Donald Trump, right. And who is right in the thick of it right there? It is Shinzo Abe trying to convince Donald Trump at the time to really tone down the trade war.

So, Phil, what is the reaction there, not just from President Biden at this hour, but from former President Trump?

PHIL MATTINGLY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Yes.

And Shinzo Abe a was one of the few leaders who actually had former President Trump's ear. And that was part of a lengthy effort and very clear effort to cultivate the former president at a time when most world leaders were stunned or shocked. President Shinzo Abe showed up at Trump Tower in 2016 before former President Trump was even inaugurated to meet with him.

And President Trump put out a statement effusively praising the former prime minister earlier today. And the former president President Obama did as well. Obviously, Joe Biden was the vice president. They worked together. They traveled together at various points.

And President Biden saying in a statement that he was shocked, he was angered, and both he and former President Biden -- or former President Obama underscoring both the relationship that the prime minister had with top U.S. officials, but also the relationship the former prime minister had with his country and the direction, kind of a dramatic direction, both economically, when it came to national security and security posture, that the country took under his leadership.

Obviously, there were plenty of issues internally, domestically, that Prime Minister Shinzo Abe had to deal with. But when it came to his relationship with America, regardless of president, regardless of party, one of the things that always stuck out is that he took the time to try and establish relationships, to try and ensure the relationship between the United States and Japan was in a stronger place than when he found it, when he started in the office.

And one thing that always sticks out to me -- and I was on this trip at the time -- was the decision by President Obama, former President Obama and Prime Minister Shinzo Abe, to actually go to Hiroshima, to show up there together. The two also traveled to Pearl Harbor to show up there together. Obviously, decades have gone by since World War II.

But it was a really critical, healing moment that other leaders either hadn't considered or hadn't felt the time was right for. Shinzo Abe did. And he not only was willing to do it. He was willing to work with his U.S. counterparts to ensure that occurred, kind of trying to close the book on an extraordinarily emotional and damaging time in the past of both countries.

NEWTON: Yes, such a good point that, symbolically, it had to be done if Japan would move on from its World War II past.

Obviously, a busy day there for you, Phil, at the White House, top of mind, domestic agenda right now. Just announced a little while ago, a new abortion rights policy. It's executive action again.

Democrats are asking themselves, will this be enough?

MATTINGLY: And the short answer is no.

And, look, let's be very clear about something right out of the gate. There is nothing President Biden can do via executive action that can restore a constitutional right that was just struck down. As the president has made clear over and over again, the only way to do that would be legislatively, through Congress, codification of what used to be Roe vs. Wade, obviously no longer exists anymore.

The executive order today is largely the president directing his agencies to come up with different ideas, whether to protect Medicaid -- medication abortion, whether to protect the ability of individuals to travel, privacy when it comes to apps in particular. That's been a big area of concern for administration officials.

But, broadly, when it comes to this issue that is so polarizing and it's just infuriated Democrats, including Democrats who have been very critical of this administration's response, the president's message has been this. Take a listen.

(BEGIN VIDEO CLIP) JOE BIDEN, PRESIDENT OF THE UNITED STATES: The fastest way to restore Roe is to pass a national law codifying Roe, which I will sign immediately upon its passage on -- at my desk.

And we can't wait. Extreme Republican governors, extreme Republican state legislators, and Republican extremists in the Congress overall, all of them have not only fought to take away the right, our rights, but they are now determined to go as far as they can.

Now the most extreme Republican governors and state legislatures are taking the court's decision as a green light to oppose some of the harshest and most restrictive laws seen in this country in a long time.

(END VIDEO CLIP)

[13:25:06]

MATTINGLY: So, for Democrats who are asking, what's the plan here, there's the plan. It's political activation at a moment where the president's approval ratings are very low, lowest of his term, and congressional Democrats in the Senate and House are concerned about losing their majorities.

Other than that, though, the executive order underscores the fact that president just doesn't have a lot of power to undo what the Supreme Court did just a couple of weeks ago.

NEWTON: Yes, which is why he's going to continue to say, get to the polls in November.

Phil Mattingly, as always, thanks so much there live for us at the White House. Appreciate it.

Now to the U.S. economy, where today's jobs report is proving a glimpse of hope, I guess. Amidst a tide of economic woes, the U.S. labor market added a greater-than-expected 372,000 jobs last month. And that's outpacing analyst predictions. The unemployment rate held steady at 3.6 percent.

CNN business correspondent Rahel Solomon, I can tell you, is all over this. She's with us here in New York.

Yes, OK, it was good, but it means that inflation is still hanging over this market, right? Rahel, when you look at this, what does it tell us, not just about jobs, but about the overheated economy?

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, Paula, I think it's so interesting that you said, I guess this is a good report, because a lot of people were sort of scratching their heads after this morning's report was released.

So what it tells us is that the labor market is still very strong, 372,000 jobs being added last month. Paula, that's about 100,000 more than expectations. So the market is still much hotter than many would like to see, perhaps even the Fed. When we look at sort of where the jobs are, its broad-based, professional services, leisure and hospitality, health care all adding more than 50,000 jobs. The asterisk here, it was a positive jobs report with an asterisk. And that asterisk is wages. Demand for workers has been so strong, Paula.

There are 1.9 open jobs right now for every American looking for a job. And while that is great for Americans, it gives them the option to move if they would like to move jobs, it's not so great for companies because they're raising wages to try to incentivize and attract workers.

Again, wage growth, great for workers. However, inflation is sort of the elephant in the room here. If you are making more, but you can afford less because of inflation, well, that's not a great predicament to be in. In fact, it's a vicious cycle. And the Fed knows that.

And so that's why it is trying to cool inflation, because even if we are seeing wage growth, which we are, it's being eaten up by inflation. So it's a vicious cycle. It makes the job of the Fed much harder. One sort of silver lining here for the Fed in this report is that wage growth, while still elevated, is moderating, it's stabilizing.

And so that perhaps provides a bit of ease for the Fed as it tries to cool inflation, because, of course, we know, as companies raise wages, their costs increase, and that tends to trickle down into higher consumer prices. And, Paula, that is the last thing we are trying to see at this point in this inflationary environment with inflation at 8.6 percent, according to the last inflation report.

By the way, we get the next one next week. So that will provide a bit more of a complete picture about what exactly is happening in the economy right now.

NEWTON: Yes, Rahel, I will have to leave it there for now.

But it'll be interesting to see if any of these data points really move the market. Is it because it's a Friday? I'm not sure. Not much going on, on at the market today.

We will get back to you next week, Rahel. Appreciate it. Thanks so much.

Still to come for us, back to our top story, of course. We will take a closer look at Shinzo Abe's legacy and his namesake's strategy to try and jump-start the world's third largest economy.

And later: Ukrainian forces try to fight off a fierce Russian assault in the Donbass, but it could be an uphill battle. A live report ahead from Kyiv.

(COMMERCIAL BREAK)

[13:30:00]

NEWTON: And welcome back, everyone. I'm Paula Newton in New York.

We want to go back to our top story. The assassination of Former Japanese Prime Minister Shinzo Abe. Now, he was shot at close range at a political rally just hours ago. We have video of the attack. We want to warn you that some viewers may find it distressing to watch. Take a look.

Abe was campaigning in the Western City of Nara for liberal democratic party candidates that was ahead of the election in the upper house on Sunday. Police say he was shot by a man with a homemade gun who has admitted to shooting the former prime minister. Now, they say the suspect is 41 years old, unemployed, and told them, he thought Abe was linked to a group that he hates.

CNN Correspondent Will Ripley reflects now Abe's life and legacy both in Japan and around the world.

(BEGIN VIDEO CLIP)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voiceover): Japan's longest serving prime minister, Shinzo Abe, had big dreams of a Japanese comeback. A comeback marred by a series of setbacks.

The Tokyo 2020 Olympics, Abe's greatest achievement. Japan spent billions only to see the games postponed by the coronavirus pandemic. The games were a cornerstone of Abe's plan to revive a struggling economy and transform Japan into a global destination. Abe promised a brighter future, a future looking bleak after 2011's massive earthquake, tsunami, and Fukushima nuclear meltdown.

Abenomics was an ambitious plan to overhaul Japan's economy with stimulus and reform. It led to record high government debt and failed to make a lasting dent in decades of deflation. Problems made worse by Japan's aging population and shrinking workforce.

Abe also tried to strengthen Japan's military, reinterpreting the nation's pacifist constitution drafted after World War II. The move led to massive protests in the Japanese capital. Abe's visits to a controversial war shrine angered his Asian neighbors. He was criticized for not making a new apology at the 70th anniversary of World War II, accused of trying to rewrite Japan's brutal wartime past.

Abe began fighting for more military power during his first time as prime minister in 2006. At 52, he became Japan's youngest postwar leader. Corruption scandals within his party caused Abe's popularity to plummet. He resigned a year later, blaming health problems.

Abe had ambition and roots in a powerful political dynasty. Two former prime ministers in his family. Reelected in 2012, Abe declared Japan is back. He tried to raise Japan's profile on a global stage, developing allies in Europe, India and Southeast Asia, trying to mend frosty relations with China.

Abe made history in 2016, appearing alongside former U.S. President Barack Obama in Hiroshima and later, Pearl Harbor. Abe was one of the first world leaders to form an alliance with Donald Trump, taking the U.S. president out for a hamburger in Tokyo. Shinzo Abe leaves behind Akie, known as a vibrant and popular first lady and his wife of more than three decades.

(END VIDEO CLIP)

[13:35:00]

NEWTON: Our thanks to will Ripley there

Now, one hallmark of Abe's legacy, as we've been telling you, was his ambitious effort to kickstart Japan's flagging economy after decades of stagflation. So, what exactly was Abenomics and was it successful? CNN's Reporter Anna Stewart has been digging into that for us.

And, Anna, in short order here, many people realize that the results were mixed. Was he blindsided on two key issues, right? It was both women's participation in the workplace, which he tried to improve, but also the fact that there seem to be no solution on the low immigration levels.

ANNA STEWART, CNN REPORTER: And both of those were aimed really when Abe tackled the big issue of Japan's aging workforce, which is an issue that advanced countries all around the world will have to deal with or already are. And Japan, in many ways, is a model.

Shinzo Abe, I remember, giving a keynote speech at a World Economic Forum in Davos in 2019, and a pillar of that speech was his great pride and the fact that he added 2 million women to the workforce. So, in that sense, he made some achievements, some headway there.

Let's bring you the three arrows of Abenomics. Of course, there was the monetary policy. So, lower negative interest rates and loads and loads of sort of buying up bonds, (INAUDIBLE) programs, fiscal stimulus aim to promote investment, the structural reform that was the third one that perhaps slightly missed the mark.

And speaking to economists today, they do say that there were some successes in the early years looking at Japan's economic growth. In the early years, there were certainly (INAUDIBLE). And it did -- you know what, Paula, it did actually draw a line under two decades, I think it was, of deflation, a loss decade. So, it did have some purpose. Did it get inflation though to the 2 percent target? No, it persistently missed time and time again. And of course, for Central Bank, that seems to be a bit of a failure.

Interestingly, very recently, as in April or May of this year, inflation did hit its target, but that is very much relating to its war in Ukraine and all the inflationary pressures there.

It was interesting reading a sort of an interview with Shinzo Abe after he left the post of prime minister in the economist, it only in May this year, and he was actually asked what his legacy would be, what will he be remembered for, and he said Abenomics. So, although it was a mixed bag and it possibly didn't, you know, achieve everything it set out to, he was still extremely proud of it.

And it does, doesn't it, in the history sort of Thatcherism, Reaganomics, we have Abenomics. And I think he will be remembered forever for the dent he made on monetary policy all around the world.

NEWTON: Yes. And again, to a lot of opposition at times, and it's interesting that you bring us in his own words, right, he wanted to be remembered for that. And of course, it will have a lasting impact not the least of the which is women's participation in the workforce in Japan.

Anna, thank you again. Really appreciate it. Good to see you.

Still to come for us, Ukrainian President Volodymyr Zelenskyy visits troops in the front lines as he vows to never give up territory for peach with Russia and the widespread effects of Russia's brutal war. We will see how it is accelerating the threat of famine in a country thousands of miles away.

(COMMERCIAL BREAK)

[13:40:00]

NEWTON: Ukraine is reporting fierce shelling in the Donbas as Russia fights to capture the eastern region on behalf of pro-Russian separatists. Now, the Ukrainian military says more than 40 towns and villages have come under attack in just the last 24 hours. Russia is now focusing on Donetsk, that's after capturing virtually all of the neighboring Luhansk province.

Ukrainian President Volodymyr Zelenskyy meantime tells CNN, his country will never give up territory in exchange for peace with Russia. He visited troops to the west of Donetsk acts on Friday. And we want to bring in CNN's Scott McLean now. He's following all these developments from Kyiv.

And certainly, as we have been seeing there and warnings stepped up assaults on Russia's part, I'm wondering if you have any insight into what kind of resistance there are meeting from Russian forces?

SCOTT MCLEAN, CNN CORRESPONDENT: There undoubtedly is some, Paula, but it seems the Ukrainians, at least, in that far eastern part of the Donbas region, the Luhansk, Donetsk area, seems like they are unable to quell what seems like an inevitable Russian march west.

And even where the Russians are running into resistance though they resorting to a familiar tactic which is bomb and shell and launch missile strikes and airstrikes against towns and villages on the other side of the front line. The Ukrainians have had much more success in the northern part of the country as of late and the far south as well, and that is the area where president Zelenskyy visited troops there along the front lines in the Kryvyi Rih area. He also met with generals in that area.

Not too far from there is the Kherson area, which is currently occupied from Russian-backed separatists. And well, that is where Ukrainians say that they have launched a successful strike on what they believe was a deposit of ammunition stored in a warehouse. But pro-Russian separatists say that that wasn't a warehouse and it didn't have ammunition in it. They claim that that was actually a hydroelectric power plant and that it is still operational at this point, accusing the Ukrainians of trying to intimidate the people in that area who are just trying to get on with their lives peacefully with Russia.

Here's what's remarkable though, Paula. You have all this fighting all along the front lines, and even in the last few days, we've seen missile strikes pretty far from the frontlines as well, and yet, consistently, you have seen in recent days more people coming into Ukraine from Poland than going the opposite direction. Some people are coming back to their homes which are damaged beyond recognition.

You mentioned that Zelenskyy says he is not going to see even as one inch of territory to the Russians, and his people, well, they are hellbent on rebuilding.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Here we spent two days and one night.

MCLEAN (voiceover): As the Russians bomb the Kyiv suburb of Hostomel in the early days of the war, the Titova family, Russian speakers who fled Donetsk eight years ago, huddled in their tiny basement listening to the new war on their doorstep.

Here, 10-year-old Makar (ph) ask his five-year-old sister Tasia (ph) what she wants most.

For Putin to finally die, she tells them.

When the shelling hit their yard, Alex and Katerina grabbed the kids and left the safety of the cross space.

MCLEAN (on camera): You had no choice?

KATERINA TITOVA, HOSTOMEL RESIDENT: You have no choice. You have to leave. You must leave to save your lives and your kids.

MCLEAN (voiceover): Our Hostomel is burning, Alex said from the end of his driveway. They walked 10 miles past dead soldiers to find an evacuation bus.

Two months later, they came back to find Katerina's jewelry studio missing an entire wall, windows were smashed, the roof of their house have holes into, and inside, there was shrapnel everywhere.

TITOVA: They even took a piece small of mental from this, it was broken, this is our family from Donetsk.

MCLEAN (on camera): Why do you still want to live here?

TITOVA: This is our casita. I wanted to live in my own house and I wanted to make a place for my family, for my kids. [13:45:00]

MCLEAN (voiceover): Plenty of others feel the same. In their bombed- out village and amidst the signs of war, there are also signs of life. Mikhail Neymet's corner store was ripped apart and looted. He says he could easily have fled the country but he would rather be here.

I have kids, grandkids, he says. You have to keep living. Life goes on.

Down the road, this high-rise complex sustained heavy damage in the fighting. In this building, most apartments are badly damaged. This one has a new window.

MCLEAN (on camera): This is actually not the roof of this apartment block. It was actually once the penthouse suite. This would presumably been the doorway. There are also some dishes lying around from whoever lived here before.

MCLEAN (voiceover): We slept in this room, resident Alexander Rotmanov tells me. This is where we ate. This is our dining room.

During the invasion, he and his wife were forced to stay in this filthy basement while Russian soldiers lived in his apartment. Hostomel has no shortage of challenges, and yet is people are still coming back.

TITOVA: We even thought about if our house will be burnt and destroyed, no matter, we will return.

(END VIDEO CLIP)

MCLEAN (on camera): Defiant determination there to rebuild, but the reality is that for more people, it will take a lot more than that. Almost no one, Paula, in this country has home insurance. It is just not part of the culture here. And so, for the people who are rebuilding, they have to rely on either their savings, take a loan or cross their fingers and hope for some kind of money from the government. But so far, that hasn't materialized.

NEWTON: Yes. And it also requires a modicum of peace to understand that if you do rebuild it is not going to be shelled again. This is all in short supply at this hour. Scott, a really good piece. And important to go back to those towns and villages just to see what people are dealing with. Really appreciate it. Thanks so much.

Now, Russia's war is not just a devastating toll on the toll of people of Ukraine, it's also impacting thousands, people in -- countries, pardon me, thousands of kilometers away disrupting their access to critical food supplies. CNN's Clarissa Ward shows us how the war is pushing Somalia closer to famine.

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CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT (voiceover): On the edge of the Naeem camp just outside of Somalia's capital, Zamzam Mohammed shows us the fresh graves of those who have died here.

ZAMZAM MOHAMMED, ADMINISTRATOR, AL NAEEM CAMP: One, two, three.

WARD (voiceover): There are 30, she says, in total, the victims from this country's record drought. As the camp administrator, Mohammed is tasked with burying the dead.

From that corner to this one, she says, this line of graves is all children.

WARD (on camera): It must weigh your heart to have to bury these little children.

WARD (voiceover): You feel such sadness when you bury a baby, she tells us. I am a mother and I can feel their pain as a parent.

Some 500 yards away, Norta Alehumi (ph) has yet to visit the graves of her three children. Severely malnourished, they died after contracting measles.

I cannot bear to go, she says. The grief I would feel.

Aid agencies warn that Somalia is marching towards another famine. Nearly half of the country is hungry, some 800,000 people have been forced from their homes this year alone.

WARD (on camera): So, two months ago, this camp didn't even exist. Now, there are more than 870 families living here.

WARD (voiceover): Conditions are dire, and the world's attention is elsewhere. Thousands of miles from the front lines of the war in Ukraine, the impact of Russia's invasion is being felt here. Food and fuel prices have skyrocketed as Russia's blockade of Ukrainian wheat threatens global supplies.

MOHAMUD MOHAMED HASSAN, DIRECTOR, SAVE THE CHILDREN COUNTRY: The wheat that is consumed in Somalia, 92 percent of it comes and Russia and Ukraine when you put it together. So, the price of wheat has doubled, in some areas you know, 150 percent increase.

WARD (on camera): So, you had climate change, COVID, but the war in Ukraine is really threatening to push Somalia over the edge?

HASSAN: Yes, definitely yes. Yes.

WARD: And what about if the war continues in Ukraine? If that blockade remains in place, what impact will that have here?

HASSAN: I cannot imagine what will be the impact.

WARD (on camera): The stabilization ward at the Banadir Hospital offers a glimpse of what may be to come. There are no empty beds and many desperately sick children.

Dr. Hafsa Mohamed Hassan (ph) works around the clock to keep her youngest patients alive. WARD (on camera): How many years have you've been working in this hospital?

DR. HAFSA MOHAMED HASSAN (PH), BANADIR HOSPITAL: Eight years.

WARD: Eight years?

DR. HASSAN (PH): Yes.

WARD: Have you ever seen so many children being brought in with malnutrition?

[13:50:00]

DR. HASSAN (PH): No, this is the worst situation I have seen. And the number of the cases are increasing day by day. The hospital is very occupied with these cases.

WARD: Are you overwhelmed?

DR. HASSAN (PH): Yes. It's overwhelming. The situation is overwhelming.

WARD (voiceover): In one bed, we meet Horaida Abdi (ph) and her four- year-old son Mohammed (ph).

I already lost three children in this drought, she says softly.

WARD (on camera): So, you came here to save your son? How do you cope with that kind of loss to lose three children? How do you get through the day?

WARD (voiceover): I can't cope with the situation, she says. I just pray that my remaining children will survive.

It's a prayer shared by so many women here. One that the world has yet to hear.

(END VIDEO CLIP)

NEWTON: And that was our Clarissa Ward reporting from Somalia.

We'll be right back after a short break.

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NEWTON: And welcome back. In the U.K., the race for a new leader is on. Ending a tumultuous week in politics. Prime Minister Boris Johnson resigned Thursday after nearly 60 of his own ministers and government officials resigned.

Early favorites to replace him as Conservative Party leader include Defense Minister Ben Wallace and Former Finance Minister Rishi Sunak. But he is not going yet, right? Johnson says he will stay on as caretaker prime minister until possibly October. And many, in both his own party and the opposition, do not like the idea of that. CNN's Nada Bashir joins me now from Downing Street.

And you've been following all of this. OK. So, it's game on for Rishi Sunak. Hardly surprising. He was one of the first high-profile ministers to resign. But is there a good measure of his chances? And, obviously, to underscore, is there any more news on how long Boris Johnson will hang on?

NADA BASHIR, CNN INTERNATIONAL CORRESPONDENT: Well, look, we have already had endorsements for Rishi Sunak, the former chancellor of the Exchequer, as you mentioned there. He was the one that sort of launched that avalanche of resignations along with the health secretary, Sajid Javid, both announcing their resignation within minutes of each other.

Now, it was very much expected that Sunak would throw his hat into the ring for the leadership bid for the Conservative Party. And just in the last two hours or so, he has confirmed that he will be running for the Conservative Party leadership.

[13:55:00]

Now, he said in a tweet, just in the last two hours, I'm standing to be the next leader of the Conservative Party and your prime minister. Let's restore trust, rebuild the economy and reunite the country. And he also, true to his value, is in a pretty slick three-minute campaign video shared online, saying, his values are nonnegotiable. Patriotism, fairness and hard work.

Now, the chancellor has gained a lot of prominence over the last few years. We saw him on numerous occasions during the COVID pandemic, giving those press briefings at number 10, behind me. He oversaw the Furlough Program during the pandemic. But he also has come under fire recently over his personal tax and wealth affairs, particularly around revelations that he came permanent residence in the U.S., holding a green card for personal tax purposes for more than a year while he was chancellor. That was a source of heavy criticism for the chancellor, particularly, of course, during a time when the country is facing a pretty serious cost of living crisis.

Now, the government not seem to be doing enough to support people during this crisis, as well as criticism over the welfare system in the U.K. So, he has a lot to contend with. But he's not the only minister to have announced their plans to run for the leadership. We've also seen other members of the Conservative Party saying that they will run. The attorney general, Suella Braverman. She announced that she would plan to run ahead of Boris Johnson's resignation during a live- TV interview.

We also heard from Tom Tugendhat today. He appears as a sort of dark horse in this race. He wrote an op-ed today saying that, number 10 needs a cleanup. And he believes that he is the one to deliver on that.

NEWTON: Number 10. I think many British people would say, you can save that again. Nada, thanks so much for the update. Really appreciate it.

Now, you are -- have been watching CNN Newsroom. I want to thank you all for watching us tonight. Stay with us though. Isa Soares picks up when I left off with "Isa Soares Tonight."

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