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Uncertainty As Country Awaits President's Formal Resignation; Biden Meet With Israeli Prime Minister Yair Lapid; Biden Seeks To Restore Iran Nuclear Deal; Record High Temperature Heat Waves in China and Europe; Dozen of Fires Burning in Portugal, Spain and France; Flooding in Eastern Part of U.S.; Inflation Hits 40-Year High in the U.S.; World Health Organization is Issuing a New Warning; FDA Approving Novavax for Emergency Use in U.S. Adults; Biden Saying he has Not Yet United the Country; Mary McLeod Bethune Becomes First Black American to Honored with a Statue in National Statuary Hall. Aired 2-3a ET

Aired July 14, 2022 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:40]

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Hello and welcome to our viewers joining us from all around the world. You are watching CNN NEWSROOM. And I'm Rosemary Church. Just ahead. A country out of control. Protesters have stormed the presidential palace and now the prime minister's office in Sri Lanka and there's no end in sight to the chaos. We're live in Jerusalem this hour covering the diplomacy and the controversy surrounding U.S. President Joe Biden's high stakes trip to the Middle East.

Plus, sweltering Shanghai. A heat wave has brought record high temperatures for the city, as well as dozens of others in China.

UNIDENTIFIED MALE: Live from CNN Center. This is CNN NEWSROOM with Rosemary Church.

CHURCH: Good to have you with us. Well, Sri Lanka's capital is calm so far today as the nation waits to learn whether President Gotabaya Rajapaksa will indeed officially submit his resignation. But it was a far different scene on Wednesday after the president abruptly fled the country and the prime minister was named acting president and protesters were furious about that.

They clashed with police, entered the offices of state T.V. and stormed the prime minister's compound in the capital. The demonstrators blame both leaders for their country's economic collapse.

And Kyung Lah is following all the developments for us from her vantage point there in Tokyo. Good to have you with us. So, what is the latest on the political and economic situation in Sri Lanka?

KYUNG LAH, CNN SENIOR U.S. NATIONAL CORRESPONDENT: Well, it's really a big question mark at this point, Rosemary. The people's movement, which is what the ground protesters are describing what they're trying to do is they want power back. They want to pull it away from what they see is a corrupt leadership run by the president who is now fled to the Maldives and the prime minister who has been appointed.

But they don't want this prime minister because they feel that the Prime Minister is simply an arm of the corrupt leadership that got them into this pickle in the first place. So, on the ground in this country, in Sri Lanka, what you feel is apprehension, a big question mark about what is going to happen tomorrow. Tomorrow, the Parliament is scheduled to meet. The Parliament needs to be in the building.

But as you can see from all of the images that we've seen of the prime minister's house, and what happened at the president's residence over the weekend is that it's going to be a little difficult, especially when you think about the rage on the streets. Now, why does that rage exist? Because the economic pressure is that a lot of first world countries in the developed world have felt the inflation, pressure from coronavirus.

All of that is happening in Sri Lanka, in addition to the mismanagement by the government, the president and the prime minister according to the people who are storming those buildings. So, a lot of questions about what happens next. This is really -- if you think about it, a bit of a pause a bit of a gap and holding of the breath before seeing what the president from Maldives is going to do next, Rosemary.

CHURCH: Yes. It is just an unbelievable situation. Kyung Lah bringing us the latest there. Appreciate it.

Well, joining me now is Chulanee Attanayake. A research fellow for the Institute of South Asian Studies at the University of Singapore. Good to have you with us.

CHULANEE ATTANAYAKE, RESEARCH FELLOW FOR THE INSTITUTE OF SOUTH ASIAN STUDIES, THE UNIVERSITY OF SINGAPORE: Thank you for the invitation.

CHURCH: So, after protesters stormed the prime minister's office demanding both the prime minister and the president stepped down the situation has calmed for now at least. But Sri Lanka's economic and political turmoil is worsening. And Prime Minister Ranil Wickremesinghe initially declared a state of emergency and then a curfew in his new role as acting president. So what do you expect to happen next politically?

ATTANAYAKE: It's a very volatile and uncertain situation, unfortunately and it's very hard to see an end to what is happening at the moment. What I think that would happen is tomorrow, the Parliament will convened as schedule.

[02:05:02]

ATTANAYAKE: And just a couple of minutes ago I didn't think in a local news channel it was reported that the speaker saying if the resignation letter from the president does not reach today, they will consider -- they will try to see what legal aspects are there to consider him as left the office in order to proceed with the next steps, according to the constitution. So once the Parliament is convened today they will schedule for election of a M.P. as the acting president which they are targeting to finish by July 20th. So after that, perhaps there will be some stability but that is the hope we have right now.

CHURCH: So how likely is it that Wickremesinghe will appoint a new president next week and who will be able to step in and bring some political stability to the country? Are there -- are there any people that stand out to you that could perhaps step up and step in right now?

ATTANAYAKE: Yesterday, after chief of staff and commanders of Tri forces and chief of police met the prime minister. They have reiterated the importance of establishing political stability at the moment and has said that they don't want to enforce force on the protests -- on the peaceful protesters. So, after that part -- political party meeting was called and the prime minister has said that the -- they have to nominate an individual who has -- who has the ability to get the Parliament majority as well as the trust of the people.

A couple of names are running around. There's opposition leader Sajith Premadasa, then there's a M.P. from the SLPP Dullas Alahapperuma. There's also a proposal in polls for general Sarath Fonseka and also for JVP leader, Anura Kumara Dissanayake. So, if more than one name will be presented at the Parliament, then they would have to go for a secret ballot.

(CROSSTALK)

CHURCH: Right. And of course, the political chaos is just one part of this story. Because the meantime the economy is in turmoil and the people of Sri Lanka are feeling the strain of food shortages, high gas prices. I mean, it's just excruciating for a lot of these people. And that's why we're seeing them in the presidential and prime minister's offices there enjoying the luxury that those two leaders enjoyed at the expense of the people of Sri Lanka.

So, how will the economic woes of their country be solved? Because clearly that is not going to happen anytime soon?

ATTANAYAKE: I think immediately for what the next government that comes into power, the priority should be to establish the political stability then in all -- then to go for the IMF package. Staff level discussions have already has happened. I think the IMF has said despite the political turmoil, they see some positive progress. And this is the only way out for Sri Lanka at the moment. So for that, we need a standing and functioning government.

So the moment that happens, I think, gradually, things will fall apart fall in line. And there will be some economic stability brought to the country. Whatever it is, the current prime minister has done some progress, reaching out to international community for humanitarian aid for Sri Lanka in order to bring essential food and medical supplies. So, they are also expected to reach the country in the next couple of weeks or next one or two months.

CHURCH: Right. Well, let's hope that happens quickly. Chulanee Attanayake joining us live from Singapore. Many thanks.

ATTANAYAKE: Thanks.

CHURCH: But we are just a couple of hours away from a meeting between U.S. President Joe Biden and the new Israeli Prime Minister Yair Lapid. Mr. Biden is hoping to bring Israel closer to normalizing relations with Saudi Arabia, which he visits this weekend. Now on Wednesday, he got a briefing on the Iron Dome Defense System and its next generation success of the Iron Beam.

Later, Mr. Biden laid a wreath at the World Holocaust Remembrance center in Jerusalem. Before he left Washington. He spoke with Israel's channel 12 about his objectives.

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[02:10:00]

JOE BIDEN, PRESIDENT OF THE UNITED STATES: The trip is about stability in the Middle East. It's overwhelming in the interest of the United States of America to have more stability in the Middle East. The more Israel is integrated in the region as an equal and accepted the more likely there is going to be a means by which they can come to an accommodation with the Palestinians down the road.

(END VIDEO CLIP)

CHURCH: So let's go live now to Jerusalem and journalist Elliott Gotkine. Elliott, what is expected to come out of the meeting between the U.S. president and Israel's new Prime Minister Lapid?

ELLIOTT GOTKINE, CNN CORRESPONDENT: Rosemary, they're going to be talking about a few things, obviously, Iran, also the prospects of moving towards some kind of normalization with Saudi Arabia. But also other things such as Ukraine and the U.S. administration's hope to keep the prospects of a two-state solution between Israel and the Palestinians alive. In terms of actual concrete measures, what we will see will come probably later on.

Later on, when there is a press conference with Prime Minister Lapid and President Biden. And also they'll be signing a joint declaration in which among other things, they will both commit to preventing Iran from ever getting nuclear weapons and also, in the words of a U.S. administration official to address the destabilizing activities of Iran and its proxies, and in particular, its threats against Israel, as well.

Now, they will, of course, be talking, as I mentioned about Saudi Arabia, we're expecting as we've been discussing, some kind of announcements that come out of this trip that will enable commercial and civilian flights to fly over Saudi airspace from Israel and also Muslims in Israel or flying from Israel to be able to take charter flights directly to the kingdom in order to attend the Hajj pilgrimage.

But they're also in between these kinds of the declaration and also the one on one meeting that Prime Minister Lapid and President Joe Biden will be having. There's also a virtual meeting of a new grouping called the I2U2. This is India, Israel, the United States and the United Arab Emirates. They will be talking about things like food security, and clean energy as well. So, plenty of things are on the agenda.

And then this afternoon, after all of this President Biden due to receive the Presidential Medal of Honor from President Isaac Hertzog and then to greet U.S. athletes at the opening of the Maccabiah Games, the so-called Jewish Olympics here in Jerusalem at a stadium that will be this evening. Rosemary?

CHURCH: Yes. Certainly a very busy day. Elliott Gotkine joining us live from Jerusalem. Many things. Well, on Friday, Joe Biden will become the first U.S. president to fly directly from Israel to Saudi Arabia. Two countries that don't have diplomatic relations. The symbolic flight comes almost two years after former President Donald Trump successfully brokered the Abraham Accords. The normalization of ties between Israel and for Arab countries.

Mr. Biden hopes to bring Israel and Saudi Arabia closer as both countries fear a mutual security threat. Iran's growing nuclear program, talks between Iran and the U.S. aimed at reviving the original 2015 Iran nuclear pact have been stalled for months now. The deal put tight restrictions on Iran's nuclear program in return for relief on international sanctions. But President Trump withdrew the U.S. from the deal back in 2018.

A move Mr. Biden has called a gigantic mistake. And he's vowing to restore that agreement.

(BEGIN VIDEO CLIP)

BIDEN: Because the only thing worse than the Iran that exists now is an Iran with nuclear weapons. And if we can return to the deal, we can hold them tight. I think it was a gigantic mistake for the last president to get out of the deal. They're closer to a nuclear weapon now than they were before. It doesn't have anything to do with whether or not the police force is going to stop, is going to continue to be engaged in activities.

We can act against them and still have a deal where they curtail their nuclear program. And so, I still think it makes sense. We've laid out at the table. We've made the deal. We've offered it and it's up to Iran now.

(END VIDEO CLIP)

CHURCH: But the U.S. and Iran disagree on how to get there, Iranian President Ebrahim Raisi critical of Mr. Biden's trip to Israel and his blasting America's handling of the nuclear talks.

(BEGIN VIDEO CLIP) EBRAHIMI RAISI, PRESIDENT OF IRAN (through translator): The Americans have said that Iran should return to the JCPOA while the Islamic Republic of Iran has never withdrawn from the JCPOA and it was America who violated the agreement. Today it is a question not only for the Europeans who are allies of the Americans in negotiations, but also for all the nations around the world. Why the United States did not adhere to its commitments in the JCPOA and withdrew from it.

(END VIDEO CLIP)

[02:15:05]

CHURCH: Saudi Arabia has been pushing to revive the original nuclear deal even hosting its own talks with Iran.

Well, Suzanne Kianpour is a writer and broadcaster who has spent nearly a decade covering foreign affairs. And she joins me now from Jeddah, Saudi Arabia. Thank you so much for being with us.

SUZANNE KIANPOUR, MIDDLE EAST WRITER AND BROADCASTER: Thank you for having me.

CHURCH: Well, it is a high-stakes Middle East tour for President Biden, the most controversial leg, of course being in Saudi Arabia. But let's start with his first visit to Israel as president. His 10th trip there in total. And the big news so far, is the U.S. president saying he would use force as a last resort to stop Iran from getting a nuclear weapon. Why do you think he's hardened his language on this issue?

Is it to appease Israeli leaders on the sensitive topic of Iran security concerns, given Israel opposes the Iran Nuclear Deal that we know the U.S. is trying to revive?

KIANPOUR: So this trip marks really the beginning of a new chapter here in the Middle East, the actual new Middle East where Israel and its Arab neighbors are unified in a kind of common enemy that being Iran. Saudi Arabia and Israel are both concerned about the security threat that they perceive Iran poses to the region and therefore this kind of hardened language that President Biden has decided to use saying that, you know, force isn't off the table.

And that he's going to be signing this joint agreement in Israel declaring that absolutely, there's absolutely no way that Iran could ever obtain a nuclear weapon. Now, it's important to remember that the White House in recent months has said that Iran has the breakout time for a nuclear weapon has diminished two weeks. So it's -- it is surprising in a way that he's hardened his position but also just given the fact that they don't want the door to diplomacy to close.

And they do want to reenter the Iran nuclear negotiations. But it's also not surprising in the sense that they're quite keen for there to be this Israel, Saudi Defense Alliance here in the region. And in a way these two countries could be the custodian of the region, whereas the U.S. won't necessarily have to have such a dominant role here. And these two countries can kind of take care of -- as part of the world if you will, and contain the Iranian threat.

CHURCH: Yes, interesting. So let's look ahead to the more complicated diplomacy of the U.S. president's trip to Saudi Arabia on Friday. As a presidential candidate, Mr. Biden called Saudi Arabia a pariah state. So, what changed his mind and what are the optics of a U.S. president meeting with the Saudi Crown Prince Mohammed bin Salman given a 2021 U.S. intelligence report found the Crown Prince had approved the murder of exiled Saudi journalist Jamal Khashoggi.

KIANPOUR: Now, sources that I spoke to who are familiar with both Saudi and Israeli thinking, have said that they're seeing the way the Biden administration is effectively treating this trip and this potential meeting with Mohammed bin Salman, the Crown Prince, as twisting themselves into a pretzel because they've been careful not to say that there's definitely going to be a bilateral between President Biden and MBS.

They've shaped it in the form of this is a multi party meeting. But of course, President Biden as candidate said that MBS should be a pariah because of this. And except for now, domestically, he has a huge problem and that soaring gas prices. And so, the Saudis are going to welcome President Biden graciously because that is their way, but they are -- they are kind of suspicious from people that I've been speaking to.

I mean, just when I landed in Saudi Arabia, I was having a conversation with an official, and he immediately discussed kind of how he wished that President Trump had had a second term. That's no secret President Biden's going to come here knowing that that is the case. And so, yes, it'll be interesting to see how this unfolds because precisely it is a controversial meeting.

CHURCH: Suzanne Kianpour joining us from Jeddah in Saudi Arabia. Many thanks. Appreciate it.

Well, Ukraine's military is again striking deep inside Russian held territory. Ukraine says a targeted Russian military depots in this strike in the heart of the Donbas. The latest on the fighting just ahead.

Plus, hopeful signs in talks to get millions of tons of Ukrainian grain out to the world. Those details when we return.

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[02:22:06]

CHURCH: Well, after weeks of grinding artillery battles in eastern Ukraine, it appears Ukraine's military is taking the fight to the Russians.

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CHURCH (voice over): For the second time in two days, Ukraine claims it hit Russian military targets far from the frontlines. This video was shot by the pro-Russian administrator in the city of Horlivka. Russia's military is responding with stepped up attacks on multiple fronts. The mayor of Mykolaiv live near the Black Sea says the city was again rocked by powerful explosions Thursday morning. Ukraine's military says the Russians are still pushing toward key cities in the central Donbas. One person was reported killed and five injured in a Russian rocket attack on Wednesday in the city of Bakhmut.

And at least two Russian missiles targeted the city of Zaporizhia including one that strike a large factory. Ukrainian officials say seven people were hurt in that attack.

So let's bring in CNN's Scott McLean. He joins us from the Ukrainian capital. Good to see you, Scott. So, what is the latest run the fighting in the south of the country and elsewhere?

SCOTT MCLEAN, CNN INTERNATIONAL CORRESPONDENT: Hey, Rosemary. Yes. So, powerful explosions were reported by the mayor in Mykolaiv this morning. He was urging people to stay inside their shelters. It's not entirely clear what exactly was hit. But Mykolaiv and nearby Kherson have really become one of the most active frontlines in this conflict as the Ukrainians have geared up to try to retake land in the south.

Case in point there was another strike on a town called Nova Kakhoka. It's about 60 kilometers or so east of Kherson. The Russian-occupied city of Kherson, the local Ukrainian official in that area said that it was a cache of ammunition that was hit. Similarly, on Monday, it was also the Ukrainians who said that they hit a cache of weapons and ammunition, though the Russians say that it was actually fertilizer.

The Ukrainians have made much about the U.S. supply to HIMARS system and their ability to more precisely target things on -- or things well behind the front lines and really try to cut off the supply lines of the Russians. Similarly in the eastern part of the country as well, the Ukrainians are not exactly sitting on their hands. You mentioned it earlier the strike in Horlivka, there is actually video showing a series of explosions on the horizon in what looks to be a wooded area.

The Ukrainian say that those are all military depots. The Russians say that those are actually residential areas though no one was hurt. Ukrainians also say that there was a residential area hit in Bakhmut. This is in the Donetsk area, still Ukrainian territory. It is the first place that you would hit in the Donetsk region, the first town of any decent size if you're trying to come in from the Luhansk region which of course the Russians have taken.

[02:25:04]

If you ask the Ukrainian military officials they will tell you that the frontlines in the eastern part of the country have remained relatively stable as of late. The Russians, they say, don't have the level of supplies, don't have the level of ammunitions that they once did, because of those attacks on the supply line. So, it seems for the moment that they are content to just bomb and shell, the towns and villages on the other side, Rosemary.

CHURCH: And Scott, what's the latest on the appeal hearing for the convicted Russian soldier because I know you were actually there for that appeal?

MCLEAN: Yes. So Vadim Shishimarin was the very first Russian soldier who was convicted of a war crime in this war. He was convicted of killing a senior citizen riding his bicycle just four days into the war. His hearing -- his appeals hearing yesterday trying to appeal a sentence of life in prison with no possibility of parole was delayed because of an air raid siren. But when it resumed, his lawyer made the case that he had actually initially refused orders from a superior to fire the fatal shot.

He says he only fired once and that ultimately, he didn't intend to kill. It was simply the stress and the pressure of that moment that led to this man's death. I asked though, the prosecuting lawyer, the prosecutor, in this case, though, whether he had any sympathy at all for this 21-year-old soldier who was put in this circumstance and sent to Ukraine to fight. Here's what he told me.

(BEGIN VIDEO CLIP)

ANDRIY SUNYUK, PROSECUTOR (through translator): I have absolutely no sympathy for these people. I approached this case with a cold heart and clear mind relying only on the facts. And the fact is that he came to our land and the military equipment in order to destroy as many Ukrainians as possible. He is complicit. No one forces a person to carry out a criminal order.

(END VIDEO CLIP)

MCLEAN: Rosemary, I have to tell you, the thing that really struck me in looking at Shishimarin in the prisoner's box is just how young he looks. Of course, he's 21 years old, but he looks like a child. He looks like a teenager. Now, the three judge panel didn't make any decisions. It's possible that there could be a decision and about a week and a half from now, but it's possible that it could be put off even further than that.

If his sentence is reduced, the longest that he would serve would be 15 years because under the Ukrainian system, there is no punishment between 15 years and life in prison with no chance of parole. The only other option for Shishimarin of course, would be a prisoner exchange. But that is not a question for the courts. That of course, is a political decision, Rosemary.

CHURCH: Yes. Indeed. Scott McLean. Thanks for keeping a very close eye on that and more bringing us that live report from Kyiv. Appreciate it.

Well, there are encouraging signs that millions of tons of Ukrainian grain will finally get exported to the international market. U.N. Secretary General Antonio Guterres called it a ray of hope after Wednesday's talks in Istanbul produced the outline of an agreement, a deal to get the exports moving could be finalized as early as next week. Ukraine's president had this reaction.

(BEGIN VIDEO CLIP) VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): We are indeed making significant efforts to restore food supplies to the world markets. I am grateful to the United Nations and Turkey for their respective efforts. The success of this story is needed not only by our state, but also without exaggeration by the whole world. If it is possible to remove the Russian threat to shipping in the Black Sea, it will remove the severity of the Global Food Crisis.

(END VIDEO CLIP)

CHURCH: Many parts of the world depend on Ukraine's agricultural products especially cooking oil, it sunflower oil accounts for more than 40 percent of the world market. Before the Russian blockade Ukraine shipped about 80 percent of its exports out of its black sea ports.

Well, still to come. A widespread heat wave hits China but instead of cooling down, some are being forced to wait in lines for mass COVID testing. We're live in Beijing with the latest.

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[02:30:00]

CHURCH: A heat wave has brought record high temperatures to dozens of cities in China. On Wednesday, Shanghai matched its highest temperature ever recorded, nearly 41 degrees Celsius. That is more than 105 degrees Fahrenheit. The heat has also driving up demand on electricity in some cities, with the heavy use of air conditioning.

And for more, I am joined by Meteorologist Tom Sater. But first, we want to go live to CNN Beijing Bureau Chief Steven Jiang.

And Steven, these scorching temperatures are making life difficult for those in Shanghai, particularly who have to line up for mass COVID testing. What is the latest on this? And of course, fears that lockdowns maybe next?

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right, Rosemary. But what seems extraordinary about this heat wave is how widespread it is, from Shanghai on the East Coast to all these provinces in the heartland.

On Wednesday, 84 cities across China actually issued their highest- level threat alert, meaning a temperature in their locations would be exceeding 40 degrees Celsius in the coming 24 hours. And Shanghai actually just issued its latest threat alert, and that's been almost a daily occurrence in that metropolis.

And remember, in a humid place like Shanghai, the feel like temperature sometimes could be 10 degrees higher than what's being reported by the weather service. Now, of course, not surprisingly, people across the country are doing all they can to escape the heat, not only turning up their AC but also heading into air raid cell shelters in many places and flocking to the beach if they can. And of course, then buying things like watermelon, ice cream and coke drinks. But as you mentioned, the added challenge this year is this happening amid a resurgence of COVID in many parts of the country, including in Shanghai, especially with the detection of the highly transmissible Omicron subvariant BA.5. So, because of this country's strict zero COVID policy, that automatically translates into new lockdowns and mass testing.

So, as you mentioned, just imagine having to line up in the streets in the scorching sun for hours to get tested. Already we have seen some social media images of COVID workers in full hazmat suits having to lie down on huge blocks of ice to cool themselves down. But of course, there's also a huge economic implication as the struggling economy trying to recover in many places. Obviously, authorities are already warning residents and factories alike to use less power, and in some cases, even implementing power rationing.

And then, of course, this is also going to have major impact on crop production, which in turn could adversely affect prices of animal feeds and meat. So, this heat wave really could have arrived in China at a worse time. Rosemary.

CHURCH: It is certainly a nightmare scenario. And, Tom, let's go to you now to see if there's any relief in sight to these scorching temperatures?

TOM SATER, CNN METEOROLOGIST: Well, you know, when it comes to the northern hemisphere, right now, Rosemary, everyone is sweltering. I mean, it's one thing to break a daily high temperature record, but we are seeing monthly records. We're seeing all-time records, for cities, countries. It's just really something else.

Now, the one difference between the European heat wave and in Asia, is there's much more humidity in Asia. So, their heat index, how it feels to the body, is even much higher. But that really doesn't give us much relief at all. I mean, I'm sure you have a passing shower might help.

[02:35:00]

But look at this, we get into the eastern provinces of China. Shanghai tying that all-time high temperature record of 40.9 degrees. But I mention this the last hour, it really needs to be repeated. When you look at Chongqing, I mean, they've been in the 40s for some time. Most of the heat waves that we're seeing right now in Europe are nothing compared to the benchmark here in 2003.

But look at Shanghai, in records since 1873, that's a lot of summer days. They've only topped out about 40 16 times. But 14 of the 16 or all since 2009. The fingerprints of climate change, and it's going to continue. As we look at the periphery, we're starting to see heavy rainfall in some areas, and just when you have these heavy thunderstorms, that's another problem with climate change. So, the heat really is producing massive rainfall like we head north of Tokyo.

Look at this, I mean, 400 millimeters of rain, Rosemary. 218 of that came in just four hours. So, it's not just the heat and the fires that are causing problems, but we've got, of course, the flash flooding. 73 large fires in Portugal right now. And this could be the worst day that we've seen in the last couple of days. It gets a little bit better in the next couple of days, but only marginally.

CHURCH: Yes. Just a miserable mix of extreme conditions there, Steven Jiang, Tom Sater, many thanks to you both. Appreciate it.

And record highs are also the theme in Europe, which has been sweltering under its own heat wave. Temperatures climb to 45 degrees Celsius in parts of Portugal and Spain on Wednesday. There's no break in sight in that region for at least a few more days. And this weekend, the heat is expected to reach Britain and possibly bringing the highest temperatures ever recorded. Officials have already issued a rare Amber extreme weather alert in England and Wales for this Sunday.

And the heat wave is coming hand-in-hand with wildfires. Dozens of them burning in Portugal, Spain and France. In Portugal alone, more 120 people have been injured and more than 600 had to flee from the fires. Officials say more than 30 homes have been lost so far. And that is happening on the back of another heat wave last month when Europe saw its second warmest June on record.

And as wildfires rage in Europe, flooding is a problem in Eastern U.S. Officials say more than 40 people are unaccounted for after flash flooding inundated this part of Virginia. No fatalities have been confirmed so far. Heavy storms hit Virginia and two other states Tuesday night, dumping up to 15 centimeters of rain in just a matter of hours. The rain set off landslides that blocked roads in the area and washed-out access to many bridges.

Well, still to come, from the price of gas to the price of eggs. Consumers in the United States are seeing a major jump as inflation hits a new high.

A grim warning from the World Health Organization, a new variant is causing a surge in COVID-19 cases across Europe and around the world. Coming up, their new recommendations for older people.

(COMMERCIAL BREAK)

[02:40:00]

CHURCH: Americans are feeling the squeeze from the soaring cost of living as new economic data shows inflation surged to a new 40-year high last month. The Consumer Price Index rose 9.1 percent from a year ago in June. That's well above the 8.6 percent posted in May and a bigger jump than economists had expected.

And that means, over the past year, the cost of basic necessities has soared. Gasoline prices saw the biggest jump, nearly 60 percent, food prices are up 10 percent, while shelter costs are more than 5.5 percent higher. The latest inflation reading may raise the chance of more aggressive action from the Federal Reserve.

(BEGIN VIDEO CLIP) MAURICE OBSTFELD, FORMER CHIEF ECONOMIST, IMF: The headline inflation number is truly scary. Month to month inflation was 1.3 percent, which is even higher than in March, the month after the war started. And that translates to 16.8 percent annual greater price level increase. So, I think the Fed is very worried about this. And 75 basis points for this month is a done deal, maybe even 100 is on the table.

(END VIDEO CLIP)

NOBLES (on camera): Inflation isn't just an issue in the United States, countries around the globe are struggling to contain a rise in the cost of living, even as economic growth is expected to slow. Bank of America analysts now predict a mild recession could be coming to the U.S., while the head of the International Monetary Fund is warning its forecast for global growth is likely to be downgraded again this year.

The World Health Organization is issuing a new warning as COVID cases spike due to the highly contagious Omicron variant, BA.5. According to the W.H.O., COVID cases in Europe have risen 25 percent, fueled by this new subvariant. And they warned the actual number may be much higher due to a lack of testing. Health authorities there are recommending a second booster shot for everyone older than 60.

In the United States, health officials warn that people who haven't kept up with their vaccinations or COVID boosters could be at risk for reinfection. While parts of the U.S. are seeing cases rise, the White House expert on the virus says, it's too soon to know if BA.5 is more serious than other variants. He says the public's response must evolve with the virus, and that more data is needed to get ahead of it.

(BEGIN VIDEO CLIP)

DR. ASHISH JHA, WHITE HOUSE COVID-19 RESPONSE COORDINATOR: The way I would describe it, certainly the most immune evasive. What we're seeing right now, is that people who got infected three months ago are getting reinfected at very high rates. People who aren't up to date on their vaccinations are getting breakthrough infections at very, very high rates.

We're not seeing that yet, and we don't know because we'll get more data, that this is somehow causing more serious illness. That's a place where we have to get more data.

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CHURCH: The U.S. Food and Drug Administration has authorized the Novavax COVID-19 vaccine for emergency use in adults. The company says, late-stage trials found the vaccine is 98 percent effective against mild to severe cases of the disease, including Omicron subvariants. The Novavax protein based two-dose shots can't be given out until the U.S. Centers for Disease Control recommends it. The CDC Advisory Committee is set to considerate next Tuesday.

And thank you so much for joining us. I'm Rosemary Church. World Sport is coming up next. And I'll be back with more news in 15 minutes. This is CNN.

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LEMON: -- things Biden is facing now, bad economy, pandemic that won't quit, a war overseas, major Faultline here over gun rights, abortion rights. How is he going to unite the country in the next two years?

DAVID AXELROD, CNN SENIOR POLITICAL COMMENTATOR: Yes. Well, no, it's going to be difficult. And I think right now, his task is to create a choice for the country. He -- if he goes into the fall election with this set of facts, or this set of indices, it's going to be a very difficult November. He has to create a choice for people and he has to make clear with the Republican Party is offering.

And that by its very nature involves being a little, more contentious, more comparative, more challenging. So, you know, I have no doubt that this is what is in his heart. He is by his nature very conciliatory person. He's worked across party lines for half a century.

LEMON: Is that realistic right now? Is that realistic right now? Because, listen, I'm not saying that the country shouldn't be united, but I don't think the country wants to be united? I think people are dug in on both sides.

AXELROD: You know, Don, I think there are a lot of people in this country who want to see people working together. I think they're a lot of people in this country who are alarmed by the shrill voices, but I also think that the parties themselves are not in that place. That the activists -- particularly the politicians, are not necessarily in that place.

Joe Biden was elected because he stood for that, that's with the country voted for. But right now, you know, some of those things that he most values are not what's needed, he needs to be more contentious, he needs to really draw the choice over people.

But I will say this, say what you will about cooperation bipartisanship and so on, he's gotten more done than anybody thought he would. The infrastructure bill, he obviously got the Rescue Act, he got the gun bill, he got some things done. And I think he deserves credit for that. But there is a big stark choice now and it goes to the sort of tone and tenor of the parties and what the Republican Party stands for. The Republican Party that exists today is not the one that Joe Biden grew up with all those decades in the United States Senate.

LEMON: That's certainly right. Listen, I'm not sure if he was elected in large part because the country -- because unity, I think that they wanted -- that, I think, people wanted sanity and they wanted a steady hand. And I'm not sure if unity, how high up on the, you know, chart unity was in the polling.

But listen, I want you to take a look at Biden, when he saying with a potential rematch with Trump. Here it is.

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UNIDENTIFIED FEMALE: Are you predicting a Biden-Trump rematch in 2024?

JOE BIDEN, U.S. PRESIDENT: I'm not predicting. But I would not be disappointed.

UNIDENTIFIED FEMALE: You will not be disappointed? So, you look forward to that rematch?

BIDEN: No. Look, the one thing I know about politics and American politics in particular, is there's no way to predict what's going to happen. I'm not even halfway through my term yet.

UNIDENTIFIED FEMALE: Yes.

BIDEN: And so, there's a lot of room to figure out what's going to happen.

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LEMON: Well, listen, one thing he said is true, it is hard to predict. But the thing is, 64 percent of Democrats say that they want a different nominee in 2024. He's got an uphill battle with his own party before he potentially battles Trump for the White House again.

AXELROD: Yes. And, Don, look, discontent is not unheard of among Democrats or Republicans when the president isn't doing well in the polls and you're heading into a fall campaign. You know, we felt some of that when I was in the Obama White House.

The fundamental thing I'd be worry about that those are large numbers, 64 percent is a large number, but then, also, when they were asking -- they ask people to volunteer what it was that they objected to about Biden, the people said they didn't want him to run. The third of them, the largest number, said age, that he was too old.

That is not a political problem. That's an actuarial problem. That is a problem that's not going to get better, he's not going to get younger. We know that. That's a political prediction one can make. And so, that's the thing that he has to confront when he makes this decision. And he's got time to make this decision. But yes, presidents have fought back, none of them have been, you know, in their 80s when they did it. And that is a concern that he has to address. And I -- you know, I think it's, frankly, a difficult one.

LEMON: Well, Reagan wasn't a spring chicken. I mean, I was alive for that.

AXELROD: Reagan was younger when he left office then the president is now.

LEMON: Yes.

AXELROD: So --

LEMON: He's having issues.

[02:50:00]

AXELROD: You know, and there were concerns about Reagan at the end of his term. Listen, I don't think Joe Biden is -- you know, I think he is in command of what he's doing. And we've seen it, on Ukraine and other issues. He's, you know, offered strong leadership. But, you know, when you are going to face the voters and ask them at 82 for another term, and you're can be closer to 90 than 80 at the end of that term, that is a very, very difficult case to make. And ultimately, he's going to have to confront that question. It's not like other presidencies.

LEMON: Yes. Well, listen, even with the headwinds, he still leads Trump by just three points, 44 percent to 41 percent.

AXELROD: Yes.

LEMON: And the headwinds and with all the bad news with the economy that he has now. So, we'll see you. You're right, we can't predict it. Thank you, David. Thank you. Really appreciate it.

AXELROD: OK.

LEMON: The House Speaker Nancy Pelosi calls it trading a traitor for a civil rights hero, a statue of civil rights icon Mary McLeod Bethune replacing a confederate general in the capital and marking a first for the National Statue Hall. We are going to tell you about it, that's next.

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LEMON: History in the making at the Capitol today. Maybe I should say her-story. The unveiling of the statue of civil rights pioneer Mary McLeod Bethune in Statuary Hall. The first black American honored with the state commission statue in the hall. Can you believe? 2022, the first African American?

(INAUDIBLE) two statues. Bethune is from Florida and it replaces a statue of a confederate general. Bethune was born in 1875, the daughter of formerly enslaved people. She was an adviser to five presidents and an educator. Her statue includes a cap and gown because she was the founder of a school for black children that later became Bethune-Cookman College and then, later the Bethune-Cookman University.

There are statues of other distinguished black Americans in the capital such as Martin Luther King Jr. and Rosa Parks. But Bethune statue is the first of a black American to be commissioned by a state and erected in Statuary Hall. But the fact is, there are still statues of confederates inside the Capitol for now. First on CNN, we're learning that Trump tried to call a member of the White House support staff who is talking to the January 6th Committee. All the details just ahead.

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