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Incoming Prime Minister Face Economic Challenges, High Inflation; Conservative Party Vote Results Expected in Hours Ahead; Pope Declares Zero Tolerance for Church Abuse; A Third of Pakistan Underwater Amid Historic Flooding. Aired 4:30-5a ET

Aired September 05, 2022 - 04:30   ET

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

[04:30:00]

MAX FOSTER, CNN ANCHOR: Welcome back to CNN NEWSROOM. I'm Max Foster. If you are just joining us, let me bring you up to date with our top stories this hour.

Nearly 50 million people are under heat alert across the Western United States. In California the scorching temperatures fueling deadly wildfires. Authorities said Sunday that two people were killed in the Mills Fire in the town of Weed.

And in the coming hours, the British Prime Minister will be announced. The Conservative Party will choose a new leader to take over from Boris Johnson. Britain's next Prime Minister will be facing a number of economic challenges including soaring inflation. In July the Consumer Price Index climbed to a 40-year high of 10.1 percent as food and energy prices put a squeeze on households. And things could get worse as well. Analysts expect energy bills to rise even further, a whopping 80 percent from October. And frustrated workers are demanding higher wages and right now at least 155,000 people are said to be on strike across the U.K. Some London residents talked about how they're coping.

(BEGIN VIDEOTAPE)

EMMANUELLA BOATENG, LONDON RESIDENT: There just has to be a change in lifestyle at this point, you know. Just turning on the gas when you can. When it's really necessary or making sure that all the lights are definitely turned off and so forth. It just has to be a change in lifestyle. Because that's the only way that you'll be able to actually survive it.

WENDY WATTS LONDON RESIDENT: I'm not bothered with what they do to be honest with you. I find the whole thing a gimmick. I don't understand what kind of government they have where they can allow the utility companies to charge this kind of money and then announce the billions of pounds of profits that they earn.

(END VIDEOTAPE)

FOSTER: Joining me here in London is Mark Littlewood. He is the director general at the Institute of Economic Affairs. But he's also known Liz Truss very closely for a number of years. We'll talk about that in just a moment. But just on this energy crisis. We can call it that, can't we?

MARK LITTLEWOOD, DIRECTOR GENERAL, INSTITUTE OF ECONOMIC AFFAIRS: We technically can.

FOSTER: And she's got a massive issue landing on her entry. How is she got to deal with it do you think? Because she's been quite coy.

LITTLEWOOD: She's been very cautious so far. If she does win -- I think she's very likely to win, by the way, Max. But this is the first thing she's got to deal with. There will be an emergency budget later in the month and that's when we'll see, I think, some real tax cuts to help people. We're likely to see the average energy bill and the U.K. hit perhaps 6,000 pounds a year, that's 7,000 U.S. dollars a year. This has gone absolutely through the roof. A lot of families can't deal with that, can't cope with it, can't pay it. This is an emergency, an urgent problem, not really an important one.

What she likely to do? Well, there's a lot of pressure to try freeze the bills. For the government to pay some part of the bills. She might do some of that. But I think her instinct will actually be to try and cut taxes elsewhere. Whenever we talk about the cost of living crisis, sometimes we overlook the biggest cost of living in the United Kingdom is tax. And if you can get that down that mitigates things like the cost of food and energy bills and the rest.

FOSTER: To explain, we don't have any inside track on Liz Truss winning. But all the polls throughout this whole election have put her way ahead. So, that's why we're assuming she's going to win at this point. But we'll find out in a few hours.

But let's find out a bit more about her. Because you went to university with her back in the days when she was a Liberal Democrat, not a Conservative. So just explain what she was like in those days and why she changed her tune, as it were.

[04:35:00]

LITTLEWOOD: It's very interesting and I think it's very fair, Max, for journalists and presenters like you to ask this question. But also, you have to say although she switched parties, I don't think she switched that many of her opinions. Infamously when she was young, she was opposed to the monarchy. I know she's changed her mind on that.

FOSTER: But she's not pro-monarchy.

LITTLEWOOD: I think she's pretty pro-monarchy. She thinks there should be a constitutional monarchy. She also was on the remain side in the Brexit referendum. Now I think wished that she voted leave. But in general terms -- if you're just viewers are trying to understand what makes her tick -- she's very in favor of free markets and enterprise. She's rather skeptical about the government being able to do much good. She doesn't think the big government programs, high spending and more regulations are the answers to too many of our problems. So, in broad brush terms, if Liz Truss prevails -- which I think is supremely likely -- I'm expecting at the start to move policy in the direction of lower taxes, less regulation, fewer government programs. Not immediately reaching for the lever of government support or news schemes to solve any particular problem. That will be quite a shift from what we've experienced here in the U.K. for the last 15 or 20 years.

FOSTER: And people want to know more about her personality and I'll ask you about in a moment. But first, the other big question -- particularly for our viewers -- is where she stands on the global stage. It's pretty clear she's not as strong on the special relationship with the U.S. as Boris Johnson was. She sees the U.K. as more of an independent nation, is that fair to say?

LITTLEWOOD: I'm not totally sure that is fair. In fact, as our foreign secretary when she's been sketching out what should Britain's long- term be on the global stage. She suggested that we need some sort of economic version of NATO. That the free countries of the world actually need to tie together rather more than they have done at the moment. So, that doesn't mean just a bilateral relationship with the U.S.A. and perhaps that's what's guided a lot of foreign policy from Britain. You know, how close are we to the Americans. But it definitely includes the USA, but it potentially includes Australia, New Zealand, a whole range of other countries --

FOSTER: Like India?

LITTLEWOOD: Yes, potentially, potentially. Those who are on the side of liberty she thinks have not actually got their act together when we're facing challenges from Russia and China. We've been too divided. So, I think we can expect her to be pretty pro-American.

FOSTER: What's she like as a person? There are some great videos flying around during the election of her dancing at a nightclub. Is she married? Has she got kids? I mean, what's her story?

LITTLEWOOD: She's married with two daughters. I think she met her husband actually through the Conservative Party when they were lowly activists. She doesn't parade her family around.

FOSTER: No, we don't see them at all, do we.

LITTLEWOOD: And I think that's quite appropriate. She's doesn't trade off of them but I know she's very proud of her family. She is as a politician fantastically and wonderfully indiscreet. You will not leave a meeting with Liz Truss.

FOSTER: I have more recently -- that's the exact impression came away with.

LITTLEWOOD: She calls a spade a spade. She will absolutely let you know where she stands on any given issue and potentially where she stands on any given person.

FOSTER: She's very personable, isn't she. She's very connected. So, shall have a very personal conversation. She's not aloof in any way. LITTLEWOOD: Exactly. And they often say about diplomats, that a

diplomat is someone who thinks twice before saying nothing. And I think that's true of politicians as well, not true of Liz Truss. And actually, her one to one ability to communicate in a very casual way -- you mentioned she has a reputation of being a partier. She just gets on with people quite well, very naturally if you're having a drink with her or chat with her. I think that's what stood her in good stead with the members of the Conservative Party, the rank and file members of the Conservative Party who actually decide. And will know their decision at lunchtime today.

FOSTER: Just got to convince the wider nation though next.

LITTLEWOOD: Oh, there's a bigger challenge there.

FOSTER: OK, Mark Littlewood, really appreciate your time. Thank you.

Now people of Chile have spoken. With nearly all ballots counted the majority of voters rejected a new constitution, 62 percent to 38 percent. Voters came out on Sunday to cast their ballots on the charter which focused heavily on indigenous rights and gender equality. The results stand in stark contrast to October 2020 when nearly 80 percent of Chileans back the creation of a constitutional assembly to replace the previous charter. Much of which dated back to the dictatorship of Augusto Pinochet.

Now Pope Francis says he takes person responsibility for ending sexual abuse within the Catholic Church, as in there should be a zero tolerance approach to it. In an exclusive interview with our partner channel, CNN Portugal, the Pontiff said, quote, a priest cannot remain a priest if he's an abuser.

For more on the interview, CNN's Vatican correspondent Delia Gallagher joins us now live from Rome. A lot of people, of course, saying too little too late, but at least he's addressing the issue.

DELIA GALLAGHER, CNN VATICAN CORRESPONDENT: That's right, Max. The Pope gave a wide ranging interview in which he discussed amongst other things, sexual abuse in the Catholic Church which he called it diabolical and vowed to continue to work towards eradicating it. He also spoke, Max, about the war in Ukraine. Let's take a listen to some of what he said.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): What is it possible for a Pope to say to President Putin and President Zelenskyy?

[04:40:00]

POPE FRANCIS (through translator): I don't know. I don't know. I had a dialogue with both. They both visited me here before the war and I always believe that in dialogue we always have to move forward.

(END VIDEO CLIP) GALLAGHER: Now we know, Max, that the Pope has spoken to President

Zelenskyy on several occasions since the beginning of the war. There's been no indication, however, that he has spoken directly to President Putin. He said that a trip to Kyiv and Moscow was, quote, up in the air. He has said previously that he would like to go to Kyiv. He has been invited, but he would also like to go to Moscow and for the moment, Max, there has been no invitation extended to the Pope from Moscow -- Max.

FOSTER: Delia Gallagher, live from Rome. Thank you very much indeed.

System pressure is back to normal in Jackson, Mississippi. The water once again flowing out of faucets. But experts warn it's still not safe to drink. Details on that ahead.

Plus, a third of Pakistan is now under water amidst historic flooding. Public health experts worry that what's in the water could be causing even more problems. We'll have the details on what might be in that water next.

(COMMERCIAL BREAK)

FOSTER: New video shows the spot where a stolen plane crash landed in the U.S. state of Mississippi. The twin engine plane was stolen Saturday morning by a worker at a regional airport who threatened to crash it into a local Walmart. Police tried to convince the man who is not a licensed pilot to land. He eventually crashed in this field. He is now in custody and has been charged with grand larceny and making terroristic threats. Police say federal charges are also expected.

[04:45:00]

After nearly a week without it, water is once again flowing for much of Jackson, Mississippi. City officials announced significant gains in water pressure and tank storage levels. But they say what's coming out of the tap is still not safe to drink. Residents are being urged to keep boiling tap water before consuming it. In the meantime, state and federal authorities along with an army of volunteers are distributing bottled water. Jackson has been without reliable tap water since Monday after flooding caused the city's main water treatment plant to fail.

Now to the latest in flood ravaged Pakistan where the death toll continues to rise from historic flooding. Officials say more than 1,300 people have died. Nearly a third of the victims are children. This, as authorities work to get relief to hard-hit areas.

Now authorities breached the country's largest fresh water lake intentionally displacing 100,000 people from their homes. Officials say the move will save densely populated areas from more flooding.

Meanwhile, two members of the U.S. Congress are on the ground in Pakistan. Representatives Tom Suozzi of New York and Sheila Jackson Lee of Texas arrived in the region on Sunday to assess the flood damage. CNN's Anna Coran has more on the historic flooding.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN CORRESPONDENT (voice-over): As rushing flood waters turn stagnant, the nightmare for Pakistani citizens who survived the initial onslaught now displaced by one of the worst flooding events in the country's history has only just begun.

MUHAMMAD KHURSHID, FLOODING SURVIVOR (through translator): Villages have been submerged one after another, our village was on the front side and it was also submerged. In 30 minutes, our village was there, no more.

COREN (voice-over): With an estimated more than one third of the country underwater makeshift shelters like this one are overrun with survivors with no homes to return to.

UNIDENTIFIED MALE (through translator): There are too many people in very few rooms, the bathrooms are clogged and there is no water.

COREN (voice-over): Hunger, lack of sanitation and disease now threatened to extend the monumental suffering for the more than 33 million people affected.

FAISAL EDHI, EDHI FOUNDATION (through translator): I can see a very big famine looming very close, very soon. I can see its initial stages. Right now, there are people who are hungry for a week or even 10 days. This is a very alarming situation.

COREN (voice-over): Doctors also sounding the alarm about a system struggling to come.

VIJAY KUMAR, HOSPITAL DOCTOR: Before the floods we used to see 50 to 60 patients during my night duty, but now we're seeing 130 to 140 patients due to illness arising from unsanitary conditions.

COREN (voice-over): While it's almost impossible to comprehend the level of devastation brought on by what the U.N. calls a monsoon season on steroids. This satellite image of just one district in Punjab Province a little less than a month ago compared with now gives a glimpse into just how dire the situation is. For some, fortunate enough to see floodwaters recede, a new shock.

ASHAN ULLAH, SHOPKEEPER (through translator): The town has been turned to ruins. Before it was a lively place and hundreds of tourists would come and go, but now everything is turned to ruins.

COREN (voice-over): Aid agencies alongside the Pakistani military are doing their best to reach those still cut off by impassable roads with Herculean rescue efforts ongoing. And as the death toll continues to rise, more rains are expected for much of September. That forecast and ominous warning that the worst may be far from over.

(END VIDEOTAPE)

COREN (on camera): Now Max, the Pakistani Prime Minister Sharif visited the flood zone in Sindh Province today with his Foreign Minister as well as the Chief Minister of Sindh. This is in the southeast of Pakistan that has been badly affected. They flew over an ocean of water. They met with flood victims. One woman saying that her house, her crops completely destroyed. That she's been without food and water for days.

There is a humanitarian crisis unfolding right now in Pakistan. The death toll more than 1,300, one third of those victims are children. And this, of course, Max is growing as rescue teams get to those areas that have been completely cut off from the outside world.

And there is a desperate plea, Max, for assistance for international aid. We know that the U.N. Secretary-General Antonio Guterres is due to fly to Pakistan this week and obviously meet with emergency teams, meet with victims. But the pleas from the Pakistani government is for the international community to come to the rescue because right now they are completely overwhelmed with the catastrophe that they're having to deal with.

FOSTER: Images are utterly shocking.

[04:50:00]

Anna, thank you for joining us from Hong Kong.

In East Asia typhoon Hinnamnor is about to make landfall in the Korean Peninsula and Japan's southern islands on Tuesday. The storm has been lashing parts of mainland China, Taiwan, Japan and the Koreas with heavy winds and strong winds. Officials in parts of Japan and China have canceled dozens of flights and closed schools because of that storm.

Former U.S. President Barack Obama is known for being a great public speaker. Now he has an award to prove it. We'll explain after the break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

LORI LIGHTFOOT (D) CHICAGO MAYOR: We have yet to hear from anybody in an official capacity from Texas. That's unacceptable. We're talking about human beings lives who have themselves gone through an incredible journey just to get to the United States.

(END VIDEO CLIP)

FOSTER: The Mayor of Chicago Lori Lightfoot lashing out at Texas Governor Greg Abbott after a second wave of migrants were bussed to her city. She accused Abbott of manufacturing a human crisis.

[04:55:00]

About 50 migrants arrived in Chicago on Sunday made up mostly of families. Another bus load of migrants made it to Chicago from Texas last Wednesday. Lightfoot says the city will make sure the migrants have food, clothing and shelter as well.

Now an emotional tribute in London for the late drummer of the band the Foo Fighters.

The band honored Taylor Hawkins, their late drummer, at a packed Wembley Arena on Saturday. Hawkins' 16-year-old son Shane took his dad's place on the drums as the band played there hit song "My Hero." It was the first Foo Fighters performance since Hawkins died suddenly back in March.

Former President Barack Obama has now won half of the four major U.S. entertainment awards. On Saturday he received an Emmy for outstanding narrator for the Netflix documentary "Our Great National Parks."

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES (voice-over): A fish that can walk. Surfing hippos want to catch the waves. Species found nowhere else on earth.

(END VIDEO CLIP)

FOSTER: Obama previously won Grammys for audio versions of his memoirs and he is to awards short of the EGOT -- that someone who has an Emmy, a Grammy, Oscar and a Tony.

Now another successful launch for SpaceX on Sunday evening. A Falcon 9 rocket carried the latest load of Starlink internet, satellites and other technology made it into orbit with no issues. The Starlink network aims to increase Internet service in remote areas. A more than 3,000 of its satellites are already in orbit.

Thanks for joining me here on CNN NEWSROOM. I'm Max Foster in London. For our international viewers, Bianca and I will be back in two hours from now for special coverage on the new U.K. Prime Minister. But for now, "EARLY START" with Christine Romans is next.

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