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U.S. Stocks Fall on Worries Over Inflation and Recession; Teachers in Ohio's Largest School District Go On Strike; Three Officers in Arkansas Accused of Beating Suspect; Parts of China Move to Save Energy Amid Heat Wave. Aired 4:30-5a ET

Aired August 23, 2022 - 04:30   ET

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

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MAX FOSTER, CNN ANCHOR: Welcome back to CNN NEWSROOM. I'm Max Foster. If you are just joining me, let me bring you up-to-date with the latest stories we're following.

According to a CNN exclusive reporting, the U.S. Justice Department has issued another subpoena to the National Archives for additional documents connected to the January 6 riots. It's a possible sign the department is ramping up its investigation into the role former U.S. President Donald Trump played into the attack on the U.S. Capitol.

And Donald Trump is offering his own version of the search of his Mar- a-Lago resort in a lawsuit. Trump's team is also asking for a "Special Master" to handle the investigation.

We are just hours away from the start of the U.S. trading day and here is a look at U.S. futures right now. They are up, which is a different picture from yesterday. In the major indices all lower on Monday over worries the U.S. Federal Reserve will once again hike interest rates by three quarters of a point next month. The Nasdaq, S&P both plunged more than 2 percent and the Dow dropped more than 640 points or 1.9 percent. U.S. stocks had rebounded in July and August after a brutal start to the year. But now the pendulum may be swinging back to pessimism. CNN's Matt Egan explains.

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MATT EGAN, CNN REPORTER: Hey, Max. There is a lot of gloom and doom out there. U.S. markets finishing sharply lower for the second day in a row on more concerns about the health of the U.S. economy and worries about the Federal Reserve's war on inflation.

Also, a new survey out from the National Association of Business Economics, and it finds that almost one in five economists think the U.S. economy is already in recession. 53 percent of economists think that there's going to be a recession that begins by the middle of next year. So, you put it together and you almost have three in four economists saying the U.S. is already in a recession or it's going to be there soon.

Now we should caution that these economists they don't have a crystal ball just because they are worried about a recession doesn't mean that there's going to be one. And also, this survey does not get into the severity of a potential downturn.

A lot of the economists that I talked to, they say the risk is of a mild recession, not a deep one like the Great Recession. And there's also a lot of positives out there about the U.S. economy, right. The jobs market is really strong. Unemployment is down. Hiring is up. Gas prices have also tumbled by more than a dollar from the record high in mid-June. That has been a huge positive.

But it all goes back to high inflation. There are all these concerns that the Federal Reserve is going to overdo it by raising interest rates so high that it ends up slowing the economy right into a recession. And remember, these interest rate hikes they are raising the costs of borrowing on credit cards, car loans, student debt, mortgages. And so, all of that is having a big impact. Right now, Max, there are a lot of concerns about what happens next in the economy.

(END VIDEOTAPE)

FOSTER: Thank you to Matt.

Now Americans are struggling with student loan debt may get some relief soon. CNN has learned the White House is leaning towards canceling up to $10,000 of student loan debt for those making less than $125,000 a year and the announcement could come as early as Wednesday. The White House is also expected to decide whether to further extend the current pause on federal student loan payments which is set to expire at the end of this month.

Twitter is feeling the pinch of economic uncertainty. The tech giant is warning employees that annual bonuses could be cut in half this year. Like other social media companies, Twitter is facing a slowdown in ad sales as many advertisers cut budgets amid fears of a recession.

Meanwhile Elon Musk has subpoenaed former Twitter CEO Jack Dorsey as part of his effort to get out of a $44 billion acquisition deal for the company. Dorsey stepped down as CEO of Twitter last November and remains on the board until May -- one month after the company agreed to sell itself to Musk. It's the latest sign that the legal battle between the Tesla CEO and the social media giant is heating up. The five day trial between Twitter and Musk is scheduled to begin in October.

And It's back to schooling season across the U.S., but in two major cities teachers and other school employees are instead headed to the picket lines. In Columbus, Ohio teachers are seeking better learning and teaching conditions. CNN's Brynn Gingras is following the developments for us.

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BRYNN GINGRAS, CNN U.S. NATIONAL CORRESPONDENT: 94 percent of the union representing teachers who are in the largest school district there in Ohio, Columbus School District, saying that they want to move forward with this strike. So about 4,000 teachers hitting the picket line with the deadline of when school starts looming. It's about to start on Wednesday. And now they're just trying to get to some agreement with the school district as far as issues that they say are so important, not just to them, but also to the students.

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At issue for them, they want smaller class sizes. They also would like heating and air conditioning in the classrooms of some of these schools saying that there are units there, but they aren't working properly. Another issue that they brought up is the fact that they want adequate planning time. They want days off to have that.

Now apparently both sides, the school district in the union, have met 22 times to try to come to some agreement. The school district saying they're giving their best and final offer but it wasn't good enough and that's why the teachers are picketing.

But again, the school is expected to start on Wednesday and we're told that classes then will likely have to be -- or will be all online run by substitute teachers. And this also means that sports can get delayed because a lot of the teachers who are picketing also run the sports schedule. So, a lot of issues there in Columbus, Ohio.

We're also seeing similar issues with a different union in Philadelphia's schools. And you know, it just talks about sort of the major issue for these teachers as they head back to school. You know, the pandemic was weighing heavily on them. We've talked about shortages. Now we're seeing these strikes and union negotiations break down. Again, it's just another sign of all that these teachers and these employees are facing as they head into the new school year. Back to you.

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FOSTER: Thanks to Brynn.

Now the doctor who guided the U.S. through the coronavirus pandemic and saved countless lives says he is ready to pursue the next chapter of his career. Dr. Anthony Fauci who is 81 will step down as director of the National Institute of Allergy and Infectious Diseases at years end. He served the agency for more than four decades. But much of his work was out of the public eye until COVID hit. Dr. Fauci provided the U.S. with calm, careful expertise and withstood a barrage of insults by right wing anti-maskers and anti-vaxxers. Death threats as well. Dr. Fauci advised seven U.S. presidents going all the way back to Reagan and the Reagan administration. He most recently filled the role of chief medical officer to President

Joe Biden who praised his unwavering commitment and said that he touched all Americans' lives with his work. Do stay with CNN, Dr. Fauci will appear on "NEW DAY" a bit later on.

Still to come on this program, an investigation is under way after a violent protest or arrest, rather, in Arkansas was captured on the video by a bystander. Details of the incident coming up.

Plus, graphic testimony in court surrounding leaked photos of the helicopter crash that killed NBA star Kobe Bryant and eight others.

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FOSTER: In the U.S. state of New Mexico a suspect already charged with murders of two Muslim men has been charged in the murder of a third. Authorities say Muhammad Syed is also the prime suspect in a fourth killing which happened in November. Syed was arrested on August 9. The shootings rattled the state's Muslim and South Asian communities. Authorities say the suspect may have known the victims and interpersonal conflict may have led to the attacks. According to an affidavit, Syed denied involvement in the killings earlier this month.

Two people are dead and one other injured after a shooting at two locations in Atlanta, Georgia. Police say a female suspect has been taken into custody at the airport and the victims were likely targeted. Authorities say they recovered a handgun at the airport and a suspect was caught before going through security.

In Florida, the Parkland School shooter's attorney is asking jurors to consider Nikolas Cruz's dysfunctional family life and mental health issues before deciding whether on sentence him to death. Cruz has pleading guilty to killing 17 people and wounding 17 others at high school in Parkland in 2018. Prosecutors are seeking the death penalty while Cruz's attorneys are asking for a life sentence without the possibility of parole.

Three law enforcement officers are under investigation in Arkansas accused of violently beating a suspect during an arrest that was caught on camera and officials say a federal civil rights investigation has also been opened. CNN's Nadia Romero has the story and a warning some of the video is disturbing to watch.

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UNIDENTIFIED FEMALE: This is bad. We got to get out of here.

NADIA ROMERO, CNN U.S. CORRESPONDENT (voice-over): Three Arkansas law enforcement officers have been removed from duty after this disturbing video was posted online, showing them beating a man outside of a convenience store. Arkansas state police had now opened an investigation into use of force by all three officers and the FBI is also investigating.

The Crawford County Sheriff's Office has identified them as Deputy Zack King, Deputy Levi White, and Mulberry Officer Thell Riddle. CNN has reached out to all three, but so far hasn't heard back.

SHERIFF JIMMY DAMANTE, CRAWFORD COUNTY, ARKANSAS: They will be punished for what they did if they are found to be in violation of any rights, laws or anything like that.

ROMERO (voice-over): The incident happened Sunday in Mulberry, Arkansas, about 140 miles northwest of Little Rock. On the video, you can see at least two officers punching and hitting the man and kneeing him repeatedly as they try to arrest him. That's when a bystander off camera yells at the officers.

UNIDENTIFIED FEMALE, BYSTANDER: Don't beat them. He needs his medicine.

DEPUTY 1: Back the f*** up.

DEPUTY 2: Get in your car.

ROMERO (voice-over): Arkansas governor, Asa Hutchinson, said the officer's response was not consistent with the training they received.

ASA HUTCHINSON, (R) GOVERNOR OF ARKANSAS: That is reprehensible conduct in which a suspect is beat in that fashion. We saw a glimpse of that. It is under investigation.

ROMERO (voice-over): Police say the man in the video is 27-year-old Randal Worcester of Goose Creek, South Carolina. An attorney representing Worcester tells CNN that Worcester was wanted for allegedly threatening a gas station clerk in a nearby town. Though Crawford County sheriff says when officers located him, he was cooperative at first, then got violent and tried to attack the officers.

DAVID POWELL, RANDAL WORCESTER'S ATTORNEY: We've all seen the video. I don't believe the excessive amount of force that was used would be justified by -- if my client did, in fact, spit on someone. I believe it was above and beyond what the officers were trained to do and what they should've done in that situation.

ROMERO (voice-over): Police said Worcester refused medical treatment but was taken to the hospital as a precaution. He is facing numerous charges, including assault, battery and resisting arrest. Worcester is now out of jail on $15,000 bond.

POWELL: There were multiple abrasions to his face, scratches. He did complain of pain to his head. I believe he was only able to sleep on one side of his head because of the nights and the injuries to the other side.

ROMERO: The sheriff says that the three officers involved were not wearing body cameras. But he said that he did dash cam video that has not been released to the public.

[04:45:00]

The sheriff said what he saw on video does not represent his department and he is vowing to punish any of the deputies if they violated anyone's rights or laws.

Now, the attorneys for the suspect, Randal Worcester, say that they believe the officers used excessive force and that their actions were not justified. One of the attorneys told me that she believes the woman who took that cellphone video saved her clients life.

Nadia Romero, CNN, Crawford County, Arkansas.

(END VIDEOTAPE)

FOSTER: A Los Angeles court heard graphic testimony Monday describing the scene at the helicopter crash which claimed the lives of nine including those of NBA star Kobe Bryant and his daughter. Bryant's widow, Vanessa, left the courtroom during that testimony. Jurors saw graphic descriptions of the human remains and heard from authorities about the timing and protocols of crash site photography. L.A.'s active fire chief testified the captain who photographed the remains violated the dignity and privacy of the families.

Still to come, these new images of Jupiter are so remarkable, even scientists say that they were stunned. A closer look at this planetary portrait when we return.

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FOSTER: Majestic new images from the James Webb Space Telescope show Jupiter like we've never seen it before. These pictures were taken with an infrared camera and then artificially colored but the level of detail here is extraordinary. At the top and bottom of Jupiter, you can see stunning images of the planet's northern and southern auroras. The second image is the wide field view. You can see the faint outline of Jupiter's rings and also two of Jupiter's moons. One on the left of your screen is particularly bright and the other a little fainter is to the right almost where the rings are. NASA says the fuzzy spots in the lower background are likely other galaxies.

NASA says the Artemis 1 mission is ready to launch in the coming days. The agency is targeting a Monday launch with the spacecraft set to travel beyond the moon and back. No one will be on board, but this mission will kick off NASA's the Artemis program which aims to send people back to the moon including the first woman and first person of color onto the lunar surface by 2025.

The debut of HBO's highly anticipated "Game of Thrones" prequel was a hit.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: No queen has ever sat in the iron throne. The king has an heir. Daemon Targaryen.

UNIDENTIFIED MALE: I will not be made to choose between my brother and my daughter.

(END VIDEO CLIP)

FOSTER: Roughly 10 million viewers watched or streamed the first episode of "House of the Dragon." The network says it's the largest audience for any new original series in HBO's history. The series takes place almost 200 years before the events of the original show. HBO is owned by CNN's parent company Warner Brothers Discovery.

Now, on the silver screen, the "Minions" have fallen victim to China's censorship. Chinese viewers of the new animated film "Minions, the Rise of Gru," have reportedly flooded social media with complaints that the ending was changed. In the original version the main super villain Gru is seen riding off with another villain named Wild Knuckles after a heist. But in China, audiences say that Gru returns to his family in the end touting his accomplishments as a father to his three girls.

Now cities in China are taking drastic new measures to save power amid a crippling heatwave. That including Shanghai which is turning off bill boards and other outdoor advertisements to conserve energy. Hundreds of high heat alerts have been issued so far this had year. Meanwhile, the extreme heat and drought conditions have sparked bush fires in China's southwest with thousands of firefighters and other authorities called into help fight those flames. CNN's Kristie Lu Stout is joins me now from Hong Kong with more on what is being done to save power there.

KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, Max, China is suffering its strongest and worst heatwave since 1961. So, you have officials across the country scrambling to find ways to make it the effects of this disastrous heatwave. For example, in the city of Shanghai, the outdoor advertisement billboards switched off, even the iconic buns skyline has gone dark. All in a desperate bid to save electricity because there's a power crunch due to the ongoing extreme heat there.

Meanwhile in the city of Chongqing, some 5,000 firefighters and emergency personnel have been dispatched to put out bush fires as a result of the extreme heat and the drought according to local officials. They say that they have the fires under control and that no casualties as a result of these fires have been reported.

Meanwhile in the province of Sichuan, this mega province that's home to 84 million people, they have announced that they have cut their hydro power capacity by half which is very significant for this probably. Sichuan Province, its electricity, 80 percent of it, comes from hydro power sources. So now they are forced to rely on its largest coal fire plant instead for electricity. Sichuan Province also announced that it will extend blackouts for all factories in 19 of its 21 cities and that affects companies like Apple, like Intel, like Foxconn that all have production facilities in Sichuan.

And because of the power crunch in Sichuan Province, that has led to supply chain disruptions for automakers in Shanghai affecting according to state media the big EV maker Tesla and as well as SAIC, that's China's biggest automaker.

Look, this has been going on since June. Since June there has been this intense and prolonged heatwave hitting across the country, huge parts of China affecting some 900 million people. And Max, I want to show you this map of what the forecast looks like in the days ahead. And as you can see on your screen, there is very little relief in sight. You know, just the human toll here is serious and the economic toll, Max, is rising. Back to you.

FOSTER: Yes, and really foreboding map there, isn't it. Thank you very much Kristie. Warm temperatures also affecting the world's glaciers. New before and

after images show just how fast they are melting.

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In Switzerland they're losing an area the size of Manhattan, would you believe every 10 years. This is what the country's corner glacier look like 87 years ago. You can see just how far the ice stretches. But today the ice is gone, replaced by trees and vegetation. And here are two more images 93 years apart, the glacier is gone. Researchers say the world can expect to see another 60 percent loss in glacier mass by the end of the century.

Now in sports news, Tampa Bay Buccaneers quarterback Tom Brady has returned to the training camp following an 11 day break for personal reasons. The seven time Super Bowl champion was seen practicing with his team Monday. One of his teammates said the 45-year-old quarterback was, quote, firing on all cylinders again.

And Marcus Mariota appears to be one step closer to securing his position As the Atlanta Falcons' starting quarterback. He spent the last couple years as a backup in Las Vegas and he had an impressive game Monday night as the Falcons face the New York Jets in preseason play.

Now, tears are meant to keep eyes clean and healthy, but now for the first time scientists have linked dogs' tears to emotion. And it appears that they cry tears of joy when reuniting with their owners. Japanese researchers measured the amount of dog tears before and after reunions with their owners after up to 7 hours of separation. Then they compared that to how the dogs reacted to reunions with other people the dogs knew but were not their owners. Only the reunions with owners increased the amount of tears. Scientists say that may be due to the dogs producing oxytocin, also known as the love hormone.

Thank you for joining us here on CNN NEWSROOM. I'm Max Foster in London. "EARLY START" with Christine Romans and Omar Jimenez is next.

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