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Mourners Pay Respects as Queen Arrives at Buckingham Palace; Queen's Coffin Will Move to Westminster Hall in Hours Ahead; Unexpected Rise in Prices Sends Markets Tumbling; Biden Celebrates Inflation Reduction Act as Stocks Sink; Ukraine has Liberated More Than 300 Settlements in Four Days; European Commission President to Travel to Kyiv Today. Aired 4-4:30a ET

Aired September 14, 2022 - 04:00   ET

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

[04:00:00]

BECKY ANDERSON, CNN ANCHOR: Hello and a warm welcome to our viewers joining us in the United States and all around the world. Live from Buckingham Palace, I'm Becky Anderson. I'll be covering all the latest developments as we prepare for the procession of Queen Elizabeth's coffin to the palace of Westminster.

ROSEMARY CHURCH, CNN ANCHOR: And live from CNN world headquarters here in Atlanta, I'm Rosemary Church. I'll have details on all of our other top stories including a global market reaction to Wall Street's worse day in more than two years.

ANDERSON: It's Wednesday, September 14th. It is 9 a.m. here in London where Queen Elizabeth's coffin now rests inside Buckingham Palace. Behind me before the next leg of her final journey begins today. In the hours ahead a procession will take her coffin from the palace to Westminster Hall. Members of the royal family, including King Charles, Prince William and Prince Harry, will be walking in that procession.

The Queen will lie in state at Westminster Hall starting later today until her funeral on Monday at Westminster Abbey. And ahead of that, mourners are camping out in London waiting for their chance to see the Queen's coffin and pay their respects.

Well, an outburst of emotion outside Buckingham Palace late on Tuesday as Queen Elizabeth arrived home for the last time. The crowd, some who waited for hours in the rain clapped and cheered as they gathered to pay their respects to Britain's longest serving monarch.

Well, the Queen's coffin had arrived in London from Edinburgh, in Scotland where thousands of mourners there paid tribute at St. Charles Cathedral. King Charles III also joined the public to mourn his mother in the Scottish capital before flying to Belfast and that marking his first visit to Northern Ireland since becoming the new monarch.

Well, CNN correspondents are fanned out across London following the developments for us. Scott McLean is where people are already lined up to see the Queen lying in state later today. Nada Bashir is outside Parliament and Nina dos Santos joins me here outside Buckingham Palace.

And I think I'll start with you, Nina. I think the images that we will see later today, this afternoon of King Charles III with his two sons walking behind the hearse carrying the coffin will be fascinating. And they will remind us -- there will be echoes of those two young boys as youngsters following behind the coffin of their mother.

NINA DOS SANTOS, CNN CORRESPONDENT: The comparison is inescapable today, Becky. It was 25 years ago on the 6th of September, so just last week, that of course they had to make that long march and walk, procession as part of the funeral cortege, behind their late mother Princess Diana.

William at the time was 15 years old and Harry was just 12 years old. Thereafter, Harry now the Duke of Sussex, has spoken on multiple occasions about how he felt that it affected him so much that he said no child should ever have to walk such a long walk in the public gaze with millions of people looking on at their grief after just having lost their mother.

Now obviously, this is a very different occasion. The preparations have been underway for quite some time. But it comes at a time of heightened tension between the brothers and also, they have now married, they have their own families. As we know, Prince Harry, the Duke of Sussex, has distanced himself somewhat from the royal family by going to move to live in America. This is probably going to be the first time that will also see, not just him with his brother in this moment 25 years later but also his wife the Duchess of Sussex being part of that funeral cortege.

[04:05:02]

She's going to be in a vehicle, we understand, alongside Sophie the Countess of Wessex with the Queen Consort in front in another vehicle with the new Princess of Wales.

ANDERSON: Nina dos Santos with me here at Buckingham Palace. Scott McLean you are down at the river among those who have been queuing. They are at the front of the queue for the opportunity to get to see the Queen's coffin. It will be a closed coffin and they will be able to pay their respects amongst tens if not hundreds of thousands of people who are likely to join that queue which starts where you are in the hours to come.

SCOTT MCLEAN, CNN CORRESPONDENT: Yes, I think hundreds of thousands is more likely, Becky. That's because we've already seen 33,000 people file past the coffin when it was in Scotland for a day or two. And in 2002, 20 years ago when the Queen mother's body lied in state, there were 200,000 people that waited to file past it to pay their respects. So, they imagine that for Queen Elizabeth II there will be even more than that.

So, right now, I am about midway through the line that has formed so far. It's a little more than 1/4 mile by my estimation, it goes almost to the Westminster Bridge there, that green one, and it starts over here by the Lambeth Bridge and so, it goes quite a ways. People at the front of the line, they have camped out. Most of the people though, in line have just started here today. And the difficulty is -- well, it's tough to stand in line for long periods of time because they're not allowing large bags and so you can only bring so much in the way of supply.

I just want to introduce you to these four ladies who came here from Gilford which is just outside of London. And you guys had prepared to be in line for the much longer than eight hours that we have left. Is that right?

UNIDENTIFIED FEMALE: We did, yes. We thought we'd here -- we thought we'd be way back there. We came out several to the station and we couldn't believe there were not many people around. And we kept walking, walking. We are about 540th in the queue. Not counting.

MCLEAN: Very specific. And so, I wonder, you know, you were prepared to stand in line potentially overnight. Why was that so important?

UNIDENTIFIED FEMALE: Just to honor her. Honor the Queen. She's just been a fantastic Queen. And it's just really sad and just I want to pay my respects.

MCLEAN: What's the Queen mean to you?

UNIDENTIFIED FEMALE: Oh, she means everything. I think she's just been wonderful. And she's done such a good job. And I just wanted to have been there and say thank you and good-bye to her.

MCLEAN: I wonder because surely a lot of people are watching this and seeing the lineups and seeing the queues and thinking, you know, this is all for just for 30 seconds to go in and pay your respects. But is it really about the, you know, moment where you actually get to file past the coffin or is it just about being here to kind of show how appreciative you are?

UNIDENTIFIED FEMALE: I think it's respect. You have to show you respected the Queen. She's given 70 years of her life to our country. And this is a small moment that we could get back to her in respect.

MCLEAN: All right, thank you all. We really appreciate you talking to us.

And so, Becky, this is again just, you know, one smile place. And you can keep walking just for a moment just to give you a sense of, you know, the people who are here. And you'll notice that there's only small bags. You don't see tents here. You don't see a whole lot of equipment. So, people are having to stand.

A lot of the people here tell me that they got here earlier today because they figured it would be easier to be stationary in one place to stand or to set rather than when the line actually gets moving. When people are actually allowed to start filing past the coffin, that's when it will be more difficult because you'll have to be constantly adjusting your place in line and constantly moving forward rather than being able to actually get comfortable and sit or stand, or even go to the bathroom and hold your place. ANDERSON: Scott McLean is there on the south bank. Thank you, Scott.

The eventual destination for all of those in the queue and the hundreds of thousands of others who will join them is Westminster Hall which is inside the palace of Westminster. That is where we find Nada Bashir. This is a part of the palace of Westminster which has a fascinated history.

I'm reminded by one of the British newspapers today this is where the Queen will lie in state built in 1097 by the son of William the Conquer. It has hosted the trials of Charles I and Guy Fawkes, Henry VIII's coronation banquet and even Tudor tennis matches. And they know that, Nada, because in 1922 tennis balls dating from Henry VIII's time were found by workmen in the hall's rafters.

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That is storied history of the room in which Queen Elizabeth II's coffin will lie in state. Her family will leave here at Buckingham Palace at 2:22 this afternoon and make what will be a 38-minute journey, most of them by foot including King Charles III and his two sons to where you are now. What are the details?

NADA BASHIR, CNN REPORTER: Well, absolutely a storied history here. And this will be a day of traditions and history. This is a place where we've seen the sort of traditions date back to the 1800s. Seven line in-state, hold at Westminster Hall and as recent of course, back in 2002 for the Queen mother where we saw some 200,000 people coming here to pay their respects. Well, that figure is set to be dwarfed today by the number of people waiting to pay their respects to the Queen.

But also of course, to catch a glimpse of the new monarch. He will be taking part in that funeral cortege leaving Buckingham Palace where you are now alongside the Prince of Wales and Harry the Duke of Sussex. Where they will take part in that procession passing through the central parts of Westminster to Whitehall the center of government here and Britain. Passing through Downy Street onwards to Westminster.

When they arrive here members of the royal family will be taking part in a service led by the Archbishop Of Canterbury. But up to that point that the members of the public will be permitted to enter Westminster Hall and Pay their respects. And there is a lot of traditional customs around this ceremony. The Queen's coffin of course will be draped in the Royal standard adorned with the Imperial state flag. And actually, this will take place for four full days, 24 hours around the clock. And the Queen's coffin will be guarded at all times by soldiers from the royal household.

And of course, this is a moment of tradition and a moment of history. But there are other concerns as well around this. This is a large- scale event. We've seen the road closed around a significant police and security presence. And as you saw in Scott's reporting there, we are expecting hundreds of thousands of people to come here to central London, to Westminster, to wait for that opportunity to pay their respects to the Queen. We've already seen an online condolence book being put out for people

to sign their letters of condolence. This will be something that is televised. Also, people will be able to access this. So, the state broadcaster, BBC, we'll be able to see inside the Hall of Westminster if they aren't able to visit themselves.

We are also expecting thousands more to be gathering just up the road in Westminster. Perhaps you're waiting to enter Westminster Hall, but just to get a glimpse of this significant moment where we will see the new king, King Charles III, as well as his two sons, the Prince of Wales and the Duke of Sussex taking part in that procession. It will be an emotional moment. It will be a historic moment. And we are course expecting hundreds of thousands of people just in the next few hours to take part. This will be four full days of line in-state -- Becky.

ANDERSON: Nada Bashir there for you in central London. To you Scott and to you Nina, thank you very much indeed for joining us.

We will have a lot more on Queen Elizabeth's final journey, her memorial plans and a new royal era here in the U.K. and to the realms around the world later this hour.

CHURCH: There it is the closing bell brought some relief for most investors on Wall Street. A disappointing inflation report pushed U.S. financial markets to their worst day since June 2020. The Dow lost more than 1,200 points, close to 4 percent. The Nasdaq fell 5 percent and the S&P 500 lost 4 percent.

Well, that inflation report showed U.S. consumer prices rising a .10 of a percent from July to August. Most economists had expected the falling cost of oil and lower gas prices would bring down inflation. The news was a little better in terms of annual inflation. That number came in at 8.3 percent. The second monthly slowdown and well below 9.1 percent in June.

Let's bring in CNN's Eleni Giokos who is following world financial markets from Dubai. Good to see you again, Eleni. Of course, a grim day on Wall Street. How are other global markets responding and what are the futures hinging about what may lie ahead?

ELENI GIOKOS, CNN CORRESPONDENT: Look, I have to say that that inflation reading, which increased by 0.1 percent from the month of July to August has created an enormous whiplash for markets around the world. And we know that the Dow, the Nasdaq and the S&P lost between 4 and 5 percent and Tuesday session. And we're seeing very similar negative territory for Asian markets.

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Where we saw the Hang Seng losing around 2 1/2 percent. We've also got the Kospi in negative territory. The Shanghai taking a knock as well.

And this is basically the big conversation about sticky inflation in the United States. What this is going to mean for more Fed hikes and the Fed tightening cycle has been very aggressive. Will they have to up the ante to try to try and bring down inflation, which is bleeding through into medicine, into rentals, into food, despite the fact that gas prices have come down in the United States.

In Europe as well, we're seeing negative territory across the board. And again, we say this is whiplash, right. So, anything that happens in the U.S. is reverberated in markets around the world.

Now what is encouraging though, the U.K. inflation number for August came down just below 10 percent, at 9.9 percent for the month of August, which is far better than people had anticipated. Which means that the Bank of England at least will not have to change its stance on what it's doing with interest rates.

And next week the Federal Reserve will be meeting. They're going to be taking the new CPI number into consideration. And the fact that market participants are clearly trying to re-rate risk right now. And it is evident in the market losses that we've seen. In fact, take a look at the futures. They do look slightly more encouraging for the start in United States today. But again, this means that the markets are now repricing what the new risks will be. Are we going to see more of a market slump in the next few weeks. Is this short-term? Was this just a knee-jerk reaction?

Futures right now looking positive. Will this remain the same if we get any other data or any other big conversations. The messaging here, Rosemary, from the big banks, from the analysts and importantly from the Federal Reserve are going to be absolutely vital in terms of market trajectory.

CHURCH: Yes, absolutely and will watch to see what Wall Street does in the coming hours. Eleni Giokos always a pleasure, thank you so much.

Well, the disappointing inflation report couldn't come at a worse time for President Biden as he spent the day celebrating the signing of his Inflation Reduction Act. Then he went to Delaware to vote in the state Democratic primary. CNN's Phil Mattingly has our report.

(BEGIN VIDEOTAPE)

PHIL MATTINGLY, CNN SENIOR WHITE HOUSE CORRESPONDENT: For a month White House officials have carefully planned and calibrated a celebration. A celebration of President Biden signing a cornerstone legislative achievement into law. That law named the Inflation Reduction Act.

The inflation information that came out on the morning of that celebration, not ideal. Inflation still running hot, though there were some deceleration on the top line. White House officials grappling with the reality that a persistent issue that is really plagued Americans across the country is not going away anytime soon.

That, however, didn't dampen the presidents effort to celebrate that cornerstone legislation achievement. One that he and Democrats are quickly pivoting to utilize in advancement in this midterm election just two months away. Take a listen. JOE BIDEN, PRESIDENT OF THE UNITED STATES: There was a two trillion

dollar tax cut. Not a penny of which is paid for and it mainly benefited the wealthy of one percent of American people and the biggest corporation. 55 of the fortune 500 companies made 40 billion dollars and in 2020 didn't pay a single penny in federal income tax. But, this year, even though some of the biggest companies in America flooded capital with lobbyists and money, they lost and the people one. No cooperation will have to pay, they will have to pay minimum taxes of 15 percent -- just 15 percent. The days the billion dollar companies paying zero in taxes is over, I promise you.

MATTINGLY: Now, White House officials point to gas prices that have dropped precipitously over the course of the last several months as some good news. But there is a recognition particularly as the Federal Reserve gets ready to raise rates again. That are real dangers here in the economy. However, they point to steady job growth, a stable, for the most part, economy grappling with those prices.

But more than anything else they point to those legislative achievements. Not just the Inflation Reduction Act, but a series of major legislative victories towards the middle of this summer. Victories that the president and Democrats plan to really focus on in the weeks ahead. The pitch is essentially, as you just heard, they were able to get stuff done against intractable opposition. That is why they should be sent back to Capitol Hill. That is why the president's majorities in the House and the Senate should be maintained. Whether that will play out, well there are certainly headwinds and more so perhaps then inflation heading into the midterm election. The Democrats, right now, feel at least unlike earlier in the summer, they have something to run on.

Phil Mattingly, CNN, the White House.

(END VIDEOTAPE)

CHURCH: We'll take a short break, but as it fights to recapture more territory in the east, Ukraine is getting a special visit today. Coming up, what's on the agenda as the European Commission president heads to Kyiv.

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CHURCH: Russia is on the run in eastern Ukraine, but still launching attacks in the. south. A Ukrainian official says at least two people are dead in Mykolaiv after it came under heavy shelling today. Now, this comes after a senior aide to Ukraine's president said a counteroffensive against Russia is slowing but not stopping. He says troops are fighting to retake control of the city of Lyman in the Donetsk region. Russia still holds huge swaths of territory, but Ukrainian President Volodymyr Zelenskyy now says some 8,000 square kilometers, roughly 3.000 square miles, have been recaptured this month. And here is the Pentagon press secretary on Tuesday talking about where Russian troops are headed next.

(BEGIN VIDEO CLIP)

BRIG. GEN. PAT RYDER, PENTAGON PRESS SECRETARY: We've seen a number of Russian forces especially in the northeast, in the Kharkiv region cross over the border back into Russia as they have retreated from the Ukrainian counteroffensive.

(END VIDEO CLIP)

CHURCH: CNN's Clare Sebastian is tracking events in Ukraine from her vantage point in London. She joins me now live. Good morning to you, Clare. So, EU Commission chief Ursula von der Leyen has announced a surprise visit to Kyiv.

[04:25:02]

And also announced EU plans to help dig out of its energy crisis. What more are you learning about all this?

CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, Ursula von der Leyen, the EU Commission President has just delivered her annual state of the union speech, Rosemary. She was fully dressed in Ukrainian colors and that is because she was announcing this trip to Kyiv later on today. And because she also announced that she wants to put in additional measures to try to help Ukraine's economy as Ukraine conducts is counteroffensive and sees the sudden gains in the east of the country.

Some of the measures she wants to bring in, she wants to provide Ukraine with seamless access to the European single market. She wants to connect Ukraine to the European electricity grid. Have them join the EU roaming, free-roaming zone. And she wants no import duties on Ukrainian imports coming into the EU. All of these would boost Ukraine's economy. Which we know the EU and other Western powers have pledged aid to help them rebuild. There would also be additional measures to boost them obviously.

We know that Ukraine wants to join the EU but that is an extremely long process. These are the interim measures to help them sort of be part of the bloc in economic terms. The other side of this that she talked about is the major issue that they're having in the European Union with energy prices and electricity prices.

And a short term thing that she talked about, that she wants to do is to cap the profits of low-cost electricity producers. These are renewables, things like wind and solar, non-fossil fuels. She says they are reaping windfalls and can contribute to aid that they need to give the citizens in all of this. She also wants a windfall tax on fossil fuel producers as well.

But longer-term she wants to reform the electricity market in the European Union. Decouple she says gas prices from electricity prices, which is one of the things that has sent energy bills soaring. These though, Rosemary, very delicate discussions that have to go on with member states. The issue is that this has come at a time when they have to try and reduce energy demand going into winter and some of these measures actually subsidize energy use. So, extremely difficult discussions as we've seen so far. CHURCH: Yes, absolutely. Clare Sebastian joining us live from London, many thanks.

Well, Ukrainian officials say their military has liberated more than 300 settlements in just four days during their counteroffensive. Residents of these villages endured months of Russian occupation. CNN's Melissa Bell spoke with Ukrainians about the emotional moments when they found out their town had been liberated.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN CORRESPONDENT (voice-over): Larissa Kharkivska is ashamed of what little she has, food given by the Russians.

Mainly rice, flower, and sugar. For six months she says, she and her 35 year old daughter were virtual prisoners of their apartment, too scared to go out. The medical help Svetlana needs after an accident 15 years ago impossible to get.

Most people, says Larissa, left Shevchenkove through Russia. Only the poorest left behind living on what they can grow, apples and watermelons mostly.

Larissa's empty fridge now her primary concern.

BELL: Enough for one month.

BELL (voice-over): She's embarrassed she says will show the world how empty it is. But tries nonetheless to offer us some of the watermelon preserves she has just made before showing us around a town liberated on Friday after several days of fighting. The shops now closed were for six months only affordable for Russian soldiers, she says.

LARISSA KHARKIVSKA, SHEVCHENKOVE RESIDENT (through translator): They mocked people. Sometimes, they killed. There were so many of them and, they were so young.

BELL (voice-over): The arrival of Ukrainian soldiers a relief for Larissa and our friend Maria, but almost too much to digest.

MARIA, SHEVCHENKOVE RESIDENT (voice-over): There's psychological abuse, and there is violence. For me, psychological abuse is worse. We were sitting in a basement for two days. And then our husbands came and said our soldiers are here. And it was just tears of happiness.

BELL (voice-over): Happiness at the change of hands, but uncertainty still about how to survive and what the immediate future holds.

Melissa Bell, CNN, Shevchenkove.

(END VIDEOTAPE)

CHURCH: Our coverage of the new royal era continues in just a moment with my colleague, Becky Anderson in London. Straight ahead, a look at how King Charles III has made bridging communities and religious groups a cornerstone of his public service. We're back with that in just a moment.

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