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Zelenskyy Asks G7 For Air Shield As Rockets Rain Down On Ukraine; "The Worst Is Yet To Come": IMF Issues Stark Recession Warning; Baltimore Prosecutors Drop All Charges Against Adnan Syed; Oil And Gas Workers Add Fuel To Iranian Protesters' Fire; Lebanon, Israel Reach Historic Agreement On Maritime Borders. Aired 1-2a ET
Aired October 12, 2022 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[01:00:25]
JOHN VAUSE, CNN ANCHOR: Hello, again, coming up here on CNN Newsroom. For a second day, non-military targets across Ukraine were hit by dwindling supply of Russian missiles. Not exactly a war winning strategy by Vladimir Putin.
It's bad now. We'll get a whole lot worse next year. The IMF gloomy outlook for the global economy. And adrift at sea, they're both underwater and nothing but sharks, sharks and more sharks, the incredible story of three men who really got lucky to be alive.
UNIDENTIFIED MALE: Live from CNN Center. This is CNN Newsroom with John Vause.
VAUSE: Another day of ramped up Russian airstrikes targeting energy facilities and civilian infrastructure. And once again Ukraine pleading for advanced air defense systems from the U.S. and NATO.
In the capital Kyiv, in other cities, residents were forced to take shelter again, but with fewer missiles fired compared to a day earlier. And let's believe Moscow stockpile of long range precision guided missiles is likely running low.
Still, in the past two days at least 19 people have been killed more than 100 wounded. No major city has been spared. President Volodymyr Zelenskyy press G7 leaders for an air shield to protect against Russian airstrikes. Germany is setting one of the most advanced air defense systems in the world. And the United States has promised similar advanced defenses as well.
(BEGIN VIDEO CLIP)
JOHN KIRBY, NSC COORDINATOR FOR STRATEGIC COMMUNICATIONS: We've been helping provide air defense capabilities to Ukraine since the very beginning of this conflict. The President has expedited the order and purchase of what we call NASAMS. These are national advanced surface air missile systems which will also give Ukrainians some additional range here. (END VIDEO CLIP)
VAUSE: But armed with outdated Soviet era air defenses Ukrainian fighters are doing better than average at intercepting Russian missiles and drones. According to President Zelenskyy, 20 out of 28 Russian missiles were shot down on Tuesday. One soldier used a shoulder five rocket to bring down two cruise missiles on Monday.
And Ukrainian and NATO officials will gather in Germany in the day ahead to discuss future weapons shipments. Well, President Zelenskyy has urged G7 leaders to declare Russia a terrorist state.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): The leader of Russia feeling the approach of his end is trying to force the democratic world to surrender with a terrorist rush to retreat, to lose. This can only be the desire of an insane person more than 100 missile strikes in less than two days against civilians, against civilian infrastructure, Sham referenda, a criminal attempt at annexation.
(END VIDEO CLIP)
VAUSE: These Russian missile attacks over the past two days have damaged about 30 percent of Ukraine's energy infrastructure. Right now CNN is told around the clock repair efforts are underway to restore services. But Ukraine's energy minister is urging those with electricity to limit their usage.
And the mayor of Lviv in western Ukraine says four electrical substations were damaged by Russian missiles, causing serious issues with the city's energy supply.
War in Ukraine is expected to dominate (INAUDIBLE) NATO Defense Ministers over the coming hours in Brussels. Britain's spy chief says Russian losses on the battlefield are staggering, and Putin's troops are running out of ammunition and supplies. More now from CNN's Nick Paton Walsh.
(BEGIN VIDEO TAPE)
NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR (voiceover): The second day of smoke over the capitol in skies that had been quieter for months. A power plant in Vinnitsa, one of many hit today, here by an Iranian drone attack official said as Russia's cruise missiles tried to turn the power off before winter.
A smaller wave of the Monday with Ukraine saying 33 hit their targets and 33 was shot down. Russia's defense spokesman blunt about what it wanted to hit energy systems and military control. These 48 hours of onslaught new and ferocity but not in purpose.
Russia has been hitting civilian targets in cities like this one, Zaporizhzhia daily for the past week, where one person died this day. Terror that led the White House to agree to send advanced air defense systems Monday. But talking to the G7 leaders, Ukraine's president wanted more declare Russia a state sponsor of terror too, he said.
ZELENSKYY (through translator): The leader of Russia feeling the approach of his end is trying to force the democratic world to surrender with a terrorist rush, to retreat, to lose.
[01:05:00]
This can only be the desire of an insane person more than 100 missile strikes in less than two days against civilians against civilian infrastructure, Sham referenda, a criminal attempt at annexation.
WALSH: Yet the days of indiscriminate and clumsy blasts don't change Russia's main problems that its army is using force conscription and lacks basic supplies. Its military leadership, bought a reprieve from rare internal dissent by Monday's violence, perhaps, but still Putin's rhetoric less fiery when he met the UN nuclear watchdog head today to discuss the frontline embattled, Zaporizhzhya nuclear power plant, even as he blamed everyone else for what he's been doing.
VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): Of course, we see that today, there are elements of excessively dangerous politicization of everything connected with nuclear activity.
WALSH: Still, he will meet his Turkish counterpart in Kazakhstan, as his leading diplomat insisted they were not against talks with the West if offered.
SERGEY LAVROV, RUSSIAN FOREIGN MINISTER (through translator): This is a lie. I can tell you right away. We did not receive any serious proposals to enter into contact.
WALSH: Again a sign Russia for all its violence and Bombus (ph) is not in a position of strength. Nick Payton Walsh, CNN, Kryvyi Rih, Ukraine.
(END VIDEO TAPE)
VAUSE: CNN's Jake Tapper sat down with U.S. President Joe Biden and he asked us president if Vladimir Putin is rational. Here's what the President said.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. PRESIDENT: I think he thought, Jake, I think he thought he's going to be welcomed with open arms that this was this has been the home of Mother Russia and Kyiv. And they were he was gonna be welcomed, and I think he just totally miscalculated.
(END VIDEO CLIP)
VAUSE: There's a lot more in that interview that exclusive interview including remarks on Russia, Saudi Arabia, and the U.S. economy coming up later this hour.
U.S. stocks finished mixed on Tuesday at a sliding for the past four days. Investors are concerned about a key U.S. inflation and earnings reports as well as the war in Ukraine. Dow snapped its losing streak rising about 0.1 percent S&P500 and NASDAQ ended the day lower, briefly entering positive territory during midday trading. The fifth consecutive day in the red for both indices.
The Bank of England will not extend its bond buying support for pension funds beyond Friday. Investors hit hard by slumping the bond prices have just three days to adjust their investments before the central bank withdraws support. But the BOE's Governor is standing firm.
(BEGIN VIDEO CLIP)
ANDREW BAILEY, GOVERNOR, BANK OF ENGLAND: I think they need to concentrate and do everything they need to do to eb done by the end of this week.
UNIDENTIFIED MALE: Is there anything that you would see that would that make you change your mind on the thinking?
BAILEY: They need to concentrate on being done by end of this week.
(END VIDEO CLIP)
VAUSE: Just hours earlier the central bank announced new measures to support the UK government debt market for the second time in two days. The pound fell more than a cent against the U.S. dollar to Bailey's remarks to its lowest level in nearly two weeks.
The outlook for the global economy is bleak the International Monetary Fund warning after a difficult year, there's much worse to come. The IMF has again downgraded its forecast for 2023. The agency saying Tuesday global growth will slump to 2.7 percent next year. There's a 25 percent chance it could fall below 2 percent. A drop like that has not happened, hasn't only happened five times in the past 50 years. Government's chief economist gave this stark warning Tuesday.
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PIERRE-OLIVIER GOURINCHAS, ECONOMIC COUNSELLOR AND DIRECTOR OF RESEARCH, IMF: 2023 slowdown will be broad based, with country's accounting for a third of the global economy expected to contract this year or next. The three largest economies the United States, China, and the Euro area will continue to stall. In short, the worst is yet to come. And for many people 2023 will feel like a recession.
(END VIDEO CLIP)
VAUSE: Joining us now is Ryan Patel senior fellow at the Drucker School of Management at Claremont University -- graduate university. It's good to see you, Ryan.
RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT: Good to see you, John.
VAUSE: OK, so the IMF did not mince words about where the economy is heading next year. Here we go. (BEGIN VIDEO CLIP)
BAILEY: Message to the funds involved in all the firms and bolted manage those funds. You've got three days left now. You've got to get this done. Because again, part of the essence of a financial stability intervention is that it is clearly temporary.
(END VIDEO CLIP)
VAUSE: Unfortunately, that was the Bank of England governor, that was not the IMF guy basically said there's a whole lot worse to come. The Bank of England is talking about the bond buying program for the pension funds, which is also another issue altogether. But, because we got the slide world economy, it will look and feel different depending on where you are. Who gets hit the hardest.
PATEL: Well, I think it's really clear from the IMF when they're given the start. You know, when I hear this they call it the U.S., China, Europe. I understand that they will get hit and stall.
[01:10:00]
But imagine who gets hit worst, it's going to be the emerging markets, it's going to be the developing countries, it's going to be, you know, this come back in inflation is about safeguarding actually the rise of living costs where majority and all these other parts of their country, third world countries, they are going to get hit hardest.
Right now, they don't feel it as much because the stall hasn't came down to that aspect. And I think we're starting to see even with that clip that you just mentioned, the Bank of England, right? They're facing that inflation force right now. And that's going to trickle down to these other countries.
VAUSE: This all comes down to timing record, high inflation, inflation is up in the sign of generation. The IMF is urging us so damn, the torpedoes approach for central bankers in the world's biggest economy, stay the course on inflation, even as your economy slows, unemployment starts to rise, because of these countries, the U.S., China, the Eurozone, if they don't get this right. If they fail to work together, then what, inflation really takes hold of all totally screwed?
PATEL: Yes, I mean, that's -- we're putting our all our eggs in a basket saying that we all need to internationally cooperate, which John, you and I know very difficult (INAUDIBLE) geopolitical issues are there. And so I think it is one of those things where next year, we're going to see unemployment rise, definitely here in the U.S. and those other parts of the country. The question becomes, can they stay the course on this very thin line? There isn't much error -- margin of error.
The IMF has downgraded the fourth time of the GDP this year, that is a huge deal. That means they keep getting it, I won't say wrong, they keep getting the forecast wrong on saying that we're they're going to go forward. So, the unemployment number is going to be very interesting in these three regions really do have to work together to help prop itself at least somewhat stability. And it'll be really interesting to see because one country can't do it alone.
VAUSE: So we're counting on China and the U.S., essentially, to kind of, you know, work out their differences and work together. OK. The head of the IMF had a basically a message that Dorothy, we're not in Kansas anymore. Here she is.
(BEGIN VIDEO CLIP)
KRISTALINA GEORGIEVA, IMF MANADING DIRECTOR: We are experiencing a fundamental shift in the world economy from one of relative predictability to a world with more fragility, greater uncertainty.
(END VIDEO CLIP)
VAUSE: OK, a wages (ph) at the beginning of whatever this is, because in terms of uncertainty, it seems the impact of climate change and natural disasters is only beginning. The world is becoming more unstable from a geopolitical point of view, less predictable. It just seems that if uncertainty is the big issue here, we're in for a boatload more in the years ahead.
PATEL: We are but there is maybe I don't know, if you want to call a silver lining, or to that degree --
VAUSE: Please.
PATEL: It is. It is changing. If you look at other recessions, you look at '07, '08, obviously, the real estate bubble, and obviously real estate has changed. This is different. This is different, because it disrupted the way digital transformation the way the future work, John. The way companies are moving forward, the way countries are treating employees, citizens, consumers has changed. You know, we're talking about work from home, we're talking about culture, we're talking consumers having more power, we're talking about transparency, again, I'm talking about the long term view, it is going to change. We're talking about supply chain sustainability.
The infrastructure for the energy side isn't there yet, but I can assure you all the opportunity in this silver lining moment where investments will come back in when assets are lower will be in those sectors, because they're going to be a high growth ROI behind it.
So I think overall we're going to see the economy and potentially countries get stronger at a rapid pace. I mean, we've seen the last two years technology, AI, however you want to mention it, we've evolved much more quicker than, you know, in essence, because he had no choice. And I don't see those lessons being learned. I mean, there's lessons learned have to be capitalized going forward to have a faster recovery.
VAUSE: Just in the meantime, though, the real estate market is tanking and your stock portfolio is in the toilet.
PATEL: Yes, but you're not supposed to look at that right now, John, but look at that long term view. I mean, yes, I mean, I think you're going to see prices dropping interest rates is still high. There's going to be some opportunity, but just not right now. But yes, right now I forget your password if I was you.
VAUSE: Thank you, Ryan. It's always good to see you. Good to have you with us. Thank you. Ryan Patel.
PATEL: Thanks, John.
VAUSE: Take care. Well, the British Finance Minister took IMF remarks out of context to defend his widely criticized policies to lawmakers. Here he is.
(BEGIN VIDEO CLIP)
KWASI KWARTENG, BRITISH FINANCE MINISTER: Just to pick up on what the IMF said today that actually the plan the mini budget has increased the forecast for growth. That's exactly -- that's precisely the opposite of what the honorable lady had said. And it's very clear where we stand on this. We've got pro-growth, pro-enterprise, pro- business, conservatives on one side and the anti-growth coalition on the other side who wants to tax more and wants to commit us to low growth.
(END VIDEO CLIP)
VAUSE: It is true the IMF said the UK's biggest tax cut in 50 years would boost economic growth. In the short term you got to let that part out when the IMF also said that would complicate the fight against inflation.
[01:15:06]
This plan has also been criticized by politicians and financial institutions minister is set to reveal his midterm fiscal plan at the end of the month. He told parliament will be quote relentlessly upbeat.
Prosecutors in Baltimore have dropped all charges against Adnan Syed, who spent more than two decades in jail for the 1999 killing of his former girlfriend. Syed has always maintained his innocence and was featured in the landmark podcast Serial. CNN's Jason Carroll has details.
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JASON CARROLL, CNN NATIONAL CORRESPONDENT (on camera): An attorney for Adnan Syed says that he will spend his time now truly being free without the burden of having to wear an ankle monitor this after prosecutors made it official and dropped the charges against Syed for the 1999 murder of his ex-girlfriend Hae Min Lee, after releasing him from prison last month.
They did it after receiving new DNA test results on items that had never been tested before, which they say excluded Syed from evidence collected at the crime scene. All of this the result of Syed's case gaining national attention on the first season of the Serial podcast that was back in 2014. He was already serving a life sentence but new evidence came to light much of its shown in that podcast. The state's attorney confirmed that previous prosecutors on the case had failed to tell Syed's defense attorney about evidence that would have allowed him to defend himself, including that there were two other possible suspects in the case.
Syed serve 23 years behind bars before it's released last month. The state did have a 30-day period to decide whether or not to refile the case. But once that DNA evidence came in late last Friday, the decision was made to officially drop it.
ERICA SUTER, ADNAN SYED'S ATTORNEY: He is elated. He is joyful. He is still processing this. I mean, I think he can imagine this has been -- there have been so many ups and downs over the past 23 years. So he is really just taking it all in. But he's incredibly grateful for all of the people who have supported him and believed in him over the years.
MARILYN MOSBY, BALITOMORE CITY STATE'S ATTORNEY: Although my administration was not responsible for neither the pain inflicted upon Hae Min Lee's family, nor was my administration responsible for the wrongful conviction of Mr. Syed as a representative of the institution. It is my responsibility to acknowledge and to apologize to the family of Hae Min Lee and Adnan Syed.
CARROLL: Now the murder of Hae Min Lee remains unsolved but prosecutors say they are determined to find her killer, her family angered over the development saying through an attorney they found out from the media that the charges have been dropped. Their attorney saying all this family ever wanted was answers and a voice. Today's actions rob them of both.
Meanwhile, Adnan who is 41 years old has always maintained his innocence. His attorney would not say whether or not he plans to try -- to file civil charges against those who were responsible for his conviction. His attorney did say that now that he's free, he'll continue to pursue his education and with hopes of possibly pursuing a degree in law. Jason Carroll, CNN, New York.
(END VIDEO TAPE)
VAUSE: Still to come here on CNN. Been a brutal crackdown on protesters in Iran turn on security forces. Also had, two enemies Israel and Lebanon, breaching and historic agreement to resolve the maritime border dispute. This details ahead.
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VAUSE: New video from the southern part of Iran are protesting oil workers which labor strikes which labor is fighting to get on Monday and now spreading to more chemical petrochemical plants in the region. (INAUDIBLE) is in support of growing nationwide demonstrations over the death of Mahsa Amini, who died after being arrested by the so called morality police last month.
Students across Iran are also raising their voices. This video obtained by the Reuters news agency shows students in Tehran forming word blood in Farsi, then clear when the video was recorded. Amini was Kurdish and the protests over her death has spread beyond Kurdish regions.
Pro-government forces have been especially brutal trying to quash dissent in Iran's Kurdistan province. Rights group says the scale of the massacre is much bigger than they can report. You say Iran is using heavy weapons, the kind that pierce armor and concrete on its own citizens. CNN's Jomana Karadsheh has our report.
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JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT (voiceover): This is what the Iranian regime doesn't want the world to see. Its ruthless crackdown on protests in the Kurdish city of Sanandaj has turned it into a war zone.
Security forces moving around on motorbikes terrorizing residents, shooting indiscriminately at protesters and into people's homes. Human Rights monitor Hengaw says several people have been killed including a seven-year-old child who died in his mother's lap.
Communication restrictions making it almost impossible for them and for us to tell the story of that child and the many others Hengaw fear have been killed. After days of trying we were finally able to briefly speak to a protester inside the city. For his safety were concealing his identity.
UNIDENTIFIED MALE (through translator): The security forces are using a lot of force to confront the people. A lot of people have been killed here. Because the internet is cut, we couldn't send any information on social media. The people are really scared. Last night in the Baharan neighborhood, there were fierce clashes.
KARADSHEH: The regime says it is separatists fueling the uprising in the Kurdish region. Armed gangs that have attacked its forces, but offered no proof. The little video breaking through the government's internet shut down just enough to see some of the horror unleashed on the people of Sanandaj.
UNIDENTIFIED MALE (through translator): Last night, the security forces were firing in the direction of houses. They were using military grade bullets. And until now I hadn't heard such bullets. The people were really afraid. They were firing lots of tear gas in the direction of houses, the backyards even the balconies. In the Baharan neighborhood, everyone felt the effects of tear gas. They had difficulty breathing.
We've heard that the hospital is full of injured people. Many people have been arrested and it's not clear where they're being taken because they're not telling anyone anything.
KARADSHEH: Human rights groups say the government is using the blackout to hide its crimes.
RAMAYAR HASSANI, HENGAW ORGANIZATION FOR HUMAN RIGHTS: The scale of the massacre is way, way bigger than what we have been able to report. This is just a drop of the ocean. We have received videos from Sanandaj that the IRGC and other security forces have used 50 caliber machine guns. These are not normal guns. It's basically like shutting protesters let's say in on one of the streets of the United States by M2.
[01:25:05]
KARADSHEH: But those bullets and bloodshed haven't stopped the will of the people, some brave protesters still taking to the streets refusing to be silenced. Jomana Karadsheh, CNN, Istanbul.
(END VIDEO TAPE)
VAUSE: Technically, Israel and Lebanon had been in war since 1948 and remain so to this day. But now both countries are somehow result in maritime border dispute with an agreement that settles a year's long dispute over oil and gas fields in the Mediterranean. CNN's Hadas Gold has details.
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HADAS GOLD, CNN CORRESPONDENT (voiceover): It looks like a Mediterranean paradise. But this is one of the most tense and dangerous places in the world, the Israel-Lebanon border. This stretch of sea has long been disputed between the two enemies technically still at war, even more so over the past decade with lucrative gas deposits at play.
On Tuesday after years of start and stop negotiations a breakthrough. Lebanon and Israel have agreed to a compromise mediated by the United States, the first of its kind in decades. Israel will now be able to develop the Karish oil and gas field and Lebanon the Qana field.
BENNY GANTZ, ISRAELI DEFENSE MINISTER (through translator): I commend the announcement by the Lebanese President accepting the agreement.
ELIAS BOU SAAB, LEBANON'S DEPUTY PARLIAMENT SPEAKER AND NEGOTIATOR: What more can secure stability on this border than having both countries at the same time producing gas.
GOLD: With Russia's war in Ukraine disrupting natural gas supplies for Europe, there were enormous incentives and pressures to reach a deal and drill.
And the strain wasn't just economic. Hezbollah the powerful Lebanese militia backed by Iran released this video over the summer, threatening to target gas facilities Israel had already put into place if they began pumping before an agreement was reached.
The Israel Defense Forces said in July that they shot down three Hezbollah drones headed toward Israeli installations. Hezbollah leader Hassan Nasrallah is likely to take the agreement as proof that his threat worked. Lebanon led by a caretaker administration is beset by years of extreme inflation, corruption and political instability. Its president Michel Aoun will welcome the desperately needed cash that the gas will bring although it will take years to see a cent. It's a political boon to the Israeli Prime Minister Yair Lapid, who faces an election in just three weeks. His chief opponent, former Prime Minister Benjamin Netanyahu has tried to use the gas deal as a political bludgeon, accusing Lapid of surrendering to Hezbollah.
U.S. President Joe Biden will likely take a victory lap as it was the U.S. mediator almost Hochstein who got the deal over the line when others couldn't. Officials now believe those gas rigs and this new border will make for a much quieter neighborhood. Hadas Gold, CNN, Jerusalem.
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VAUSE: Mark the day the coronation of King Charles III scheduled now for May 6 next year at Westminster Abbey in London. Buckingham Palace says the service will be a more modern affair compared to previous royal coronations will still rooted in long standing traditions. King Charles be crowned alongside his wife Camilla, the Queen Consort.
This will be just the second coronation in British history to be televised. Queen Elizabeth was the first back in 1953.
Well, when we come back, Joe Biden paid a price for a friendly fist bump with the Saudi leader he wants described as a pariah. And now there will be consequences for Saudi Arabia after the kingdom handed Russia a huge boost in oil revenue.
Also ahead.
(BEGIN VIDEO CLIP)
JAKE TAPPER, CNN ANCHOR: Do you think Putin is a rational actor?
(END VIDEO CLIP)
VAUSE: As President Putin think about the state of brotherly Putin's mind that it is an off ramp for Russia in the war in Ukraine.
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[01:31:55]
VAUSE: Welcome back everyone. I'm John Vause. You're watching CNN NEWSROOM.
During an exclusive interview with CNN, the U.S. president says Saudi Arabia will face consequences for agreeing to cut oil production, a decision which will see increased prices at the pump. The U.S. president had personally tried to convince the Saudis to oppose the cut during a recent OPEC meeting.
Now, President Biden will work with Congress to reevaluate relations with the kingdom.
CNN's Kaitlan Collins has more.
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KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: President Biden now taking a different tone when it comes to Saudi Arabia saying he does believe there needs to be a review of the U.S.-Saudi Arabia relationship in light of that decision by OPEC+ to slash oil production despite attempts by the White House to get Saudi Arabia to continue oil production, as it was potentially to increase it.
And this is something that is causing Democratic lawmakers here in Washington to say that Saudi Arabia is effectively siding with Russia in its war on Ukraine because of course, if they slashed production, that could potentially boost prices for Russia, helping them finance the war that they are conducting in Ukraine.
And so, that is something that is under consideration here at the White House, but we are told by John Kirby from the National Security Council that doesn't mean that informal policy review is being conducted. No special teams, no deadlines.
The White House also not saying exactly what options they are looking at when it comes to potentially retaliating against Saudi Arabia, though they do seem to sense a sense of urgency here, saying that this is something they're going to be having conversations with members of Congress about, because you have seen Democrats, people from Biden's own side of the political aisle saying that they believe that the weapons sales that are going to Saudi Arabia should effectively be curtailed, potentially stripping some of those antitrust laws that help OPEC+ function with the price of oil.
All of this matters that are under consideration now in Washington because Congress is vowing to push back against this decision. The question is, just how much the White House is going to go along with this.
But it is a big shift in tone for President Biden himself, given over the summer, he took the political hit, going to Saudi Arabia, meeting personally with Saudi leaders and fist bumping the Crown Prince, a decision he said he does not regret.
But of course, all of that factors into what the White House is thinking now when it comes to the U.S.-Saudi relationship. And they said, really, that amounts to a rethinking of what that relationship is going to look like going forward and whether or not it serves the national security interests of the United States.
Kaitlan Collins, CNN -- the White House.
(END VIDEOTAPE)
VAUSE: President Biden sat down for a one-on-one interview with CNN's Jake Tapper, who asked about the possibility of a U.S. economic recession as well as the mental state of the Russian President Vladimir Putin. Here's part of the interview.
(BEGIN VIDEOTAPE)
JAKE TAPPER, CNN CHIEF WASHINGTON CORRESPONDENT: Do you think Putin is a rational actor?
JOE BIDEN, PRESIDENT OF THE UNITED STATES: I think he is a rational actor who's miscalculated significantly. I think he thought -- you may recall I pointed out that they were going to invade, those 100,000 more troops there. No one believed that he was going to invade Ukraine.
[01:34:55]
BIDEN: You listen to what he says. If you listen to the speech he made after -- when that decision was being made, he talked about the whole idea of he was needed to be a leader of Russia that united all the Russians -- I mean, I just think it's irrational.
TAPPER: So if he is not rational --
BIDEN: I did say he's not rational.
TAPPER: You said the speech is --
BIDEN: I think the speech is, his objectives. I think he thought that he was going to be welcomed with open arms. That this was -- this was the home of modern Russia and Kyiv and that he was going to be welcomed. And I think he just totally miscalculated.
TAPPER: What is the off ramp? Is there any acceptable way that he can leave in his mind without seizing territory in a way that would not be acceptable for Ukraine?
BIDEN: I don't know what's in his mind. Clearly he could leave. He could just flat leave. And still probably hold his position together in Russia.
The idea that he has been able to convince the significant Russian people that this is something that he thought made sense but now he's accomplished what he wanted to do and it's time to bring the Russians home.
TAPPER: The economy remains top of mind for voters. Should the American people prepare for a recession?
BIDEN: No. Look, they've been saying this now, every six months they say this. Every six months they look down, the next six months to see what's going to happen. It had not happened yet.
But we're in a better position than any other major country in the world economically and politically. We are -- we still have real problems.
But look at what we got done, we passed so much legislation that is significantly makes a point about, you know, for example the American Rescue Plan, the legislation to deal with inflation. The Inflation Act. We've moved along -- I mean there's so much that's been accomplished
that the idea that there is something as an automaticity to a recession is just not -- just not there. They have been predicting this on and off for the last --
TAPPER: But you just that a slight recession is possible.
BIDEN: It is possible -- look it is possible. I don't anticipate it.
(END VIDEOTAPE)
VAUSE: Political analyst Michael Genovese is the president of the Global Policy Institute at Loyola Marymount University and he is with us from Los Angeles. It has been a while, Michael, nice to see you.
MICHAEL GENOVESE, POLITICAL ANALYST: Good to see you, John.
VAUSE: Ok. So midterm elections in the U.S., four weeks away. The balance of power in the Senate and in the House of Representatives up for grabs.
This interview was seen as an opportunity for the president to sell his administration's achievements because in a lot of the races around the country, Republicans are tying the Democrat candidate directly to Biden, essentially making this midterm election a referendum on the president.
So how did Joe Biden do?
GENOVESE: Well, you know, every midterm election is a referendum on the incumbent president. And that is one of the reasons why, is it time for us to punch back at the incumbent? Whatever we don't like we can blame on that person and it is always a fact that midterms are tough on presidents. They tend to lose about five or six Senate seats, about 25 house seats.
I think Biden will do better this time. But, it's hard to defend against the onslaught of criticism especially when there are serious problems out there that the American public really is worried about -- inflation, gas prices, maybe there's going to be a recession.
And so President Biden was trying to basically defend his record. He is not the most scintillating speaker and therefore he doesn't always sell himself. Nor does he sell the case as well as he could. But it's a tough sell, because the Republicans are really on the attack.
VAUSE: Yes. You mentioned the economy as being one of the biggest issues for Americans coming up to the midterms. And the U.S. economy, you know, seeing a lot of inflation. It's struggling to bring down those high prices. And that issue of a recession was a question that Jake Tapper put to Joe Biden. Here it is.
(BEGIN VIDEO CLIP)
TAPPER: Should the American people prepare for a recession? BIDEN: No. Look, they've been saying this now -- every six months they
say this. Every six months they look down the next six months and say what's going to happen. It had not happened yet. It hadn't -- there is no guarantee that there is going to be -- I don't think there will be a recession. If it is, it will be a very slight recession.
(END VIDEO CLIP)
VAUSE: The thing about this administration though is that, you know, they can play with the technical definition of what a recession is. And they can weasel their way out of, you know, being labeled with an official recession, but the reality is, I guess politically, is there is much difference from a technical recession not happening if everyone feels like the economy is in a real recession and feeling the pain of that?
GENOVESE: That's right. To the American public, that does not pass the smell test. They feel like there's going to be a recession. Some people feel there already is a recession.
[01:39:53]
GENOVESE: And so feelings are more important than facts, we know that. Perception is more important than reality and so whoever can shape the narrative can win the argument.
Joe Biden has been unable to shape the narrative. He doesn't speak authoritatively or with confidence and so the American public is understandably worried. And I don't think Biden has done much to reassure them.
VAUSE: And you know, on the positive side, this country has an unemployment rate of about 3.5 percent which is historically low. But that only affects a fraction of the country.
We're looking at inflation, which affects the entire population. Everyone's spending power is being hurt. So politically, it's kind of a loser at the moment?
GENOVESE: That's right. And you know, many economists are saying there is going to be a recession. Having said that, the underlying forces in the economy are actually fairly strong especially compared to other countries. But it really is a matter of what you feel and what you think when you close the door at night and go in and sit down at the living with your family.
And do you feel confident? Do you feel like tomorrow's going to be a better day. Do you feel like you can basically pay your bills and have a little bit of disposable income? Americans are understandably and I think rightly concerned.
VAUSE: The president was also asked about the relationship with Saudi Arabia. This is interesting because the kingdom essentially screwed over Joe Biden as well as Ukraine when OPEC+ agreed to cut oil output. It was a big win for Russia forcing the price of oil up. Again, here's President Biden speaking with Jake Tapper. (BEGIN VIDEO CLIP)
TAPPER: Do you think it is time for the U.S. to rethink its relationship with Saudi Arabia?
BIDEN: Yes. And by the way, let's get straight to what I want. I didn't go to (INAUDIBLE) about will, I wanted it about making sure that we -- make sure that we weren't going to walk away from the Middle East.
We should, and I am, in the process when the House and Senate gets back, there are going to have to -- there's going to be some consequences for what they've done.
(END VIDEO CLIP)
VAUSE: A couple of things, does anyone really believe the meeting between Saudi Crown Prince and Biden was about anything other than oil and the price of oil? And at this point, is it wise to be starting a fight with the third biggest oil producer in the world whilst in a midst of a war with the world's second biggest oil producer?
GENOVESE: We are -- I mean no pun intended, we are over a barrel. And we've always had this very strained and strange relationship with Saudi Arabia. They do not conform or comport to our values. But in a tough world where you have to make tough choices, you can't always side with the angels.
Sometimes you have to make deals with countries that you don't like. We've done that for years with Saudi Arabia. Right now, they are not behaving as if they are an ally or a friend. They are behaving like they are switching their allegiance to Putin and Russia.
That would be strategically foolish of them but I can understand why they are trying to play both sides of the -- burn both sides of the candle.
VAUSE: Michael Genovese, as always thanks so much. We appreciate you being with us.
GENOVES: Thank you John.
VAUSE: We'll take a short break, when we come back, an extraordinary rescue of three fishermen saved after their boat sank in the Gulf of Mexico surrounded by sharks. Sharks, lots of sharks everywhere sharks.
[01:42:58]
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VAUSE: We have this just in to CNN.
A court in Myanmar has sentenced deposed leader Aung San Suu Kyi to another three years in prison. This time it's for corruption charges, the latest in a series of military trials which critics have denounced as a sham. CNN's Paula Hancocks following the trial for us from Seoul.
At this point it seems the details of her alleged crime are not even relevant. She is 77 years old. She'll spend the next 26 years in jail. She'll be 103 years old by the time the sentenced is served.
So unless the military dictatorship comes to a dramatic end sometime soon, chances are she'll die in prison.
PAULA HANCOCKS, CNN CORRESPONDENT: John, her supporters say that is exactly what the military junta wants. They want her out of the public eye. They want her behind bars. In case they ever do get around to having those as they call them free and fair elections that they have promised the people of Myanmar.
They are well aware that Aung San Suu Kyi is still extremely popular within her own country. And certainly, they do not want her to be any part of any elections in the future.
In fact, it was February of last year when they staged that bloody coup and deposed Aung San Suu Kyi and the democratically-elected government that had won in a landslide against the military in November before.
So this is what her supporters and critics of the junta are saying. That these charges are trumped up. That many of them are made up. Aung San Suu Kyi and her lawyers have denied all the charges against her.
But the important thing for the junta is that this is kept behind closed doors. The very fact that these court cases, and military court cases are being held behind closed doors is very telling. The fact that there was a gag order on her lawyers is very telling.
These details are coming to the outside world from sources with knowledge of what is going on. This particular one today, she was sentenced to another three years in prison. This one was because she was found guilty of taking bribes of some half a million dollars from a local tycoon which she does deny.
But there are at least 20 charges against her in all and so far there are 26 years in jail against her. But the overwhelming expectation of her supporters and of human rights groups around the world is that this is the military junta's intention, to keep her out of sight, John.
VAUSE: What would be the impact on essentially what has been a resistance to the military dictatorship. Clearly that is part of the issue here to sort of decapitate that movement. Will this embolden those who are her supporters or will it make them cower even further?
HANCOCKS: Well, what we have seen is the anti government -- sorry the anti military and pro-democracy protests have continued all the way through this process. The military junta has been carrying out extremely bloody crackdowns on those who are calling for democracy and calling for the reinstatement of the democratically -elected government. In fact, one group is trying to keep count the AAPC says that more than 2,300 people have been killed so far. And they say the actual number is likely far higher. Those are just the individuals that they can actually confirm at this point.
Information is very difficult to come by as the military is controlling communication within the country. And more than 15,000 people have been arrested. So there is lessening freedoms and increasing arrests from the military junta. They are trying to strike fear into those who still oppose them. But up until this point, there are still those who do vocally and visibly oppose them, John.
VAUSE: Paula thank you. Paula Hancocks in Seoul. Appreciate that.
20 years on since a very deadly day in Bali, marked by Australia and Indonesia. (INAUDIBLE) plans throughout the day -- survivors, officials, families and friends of the victims attending memorial services. Those 5 minutes have paid tribute to the victims.
202 people from more than 20 countries were killed back in 2002 when a group linked to al-Qaeda detonated two bombs outside of nightclubs in an area that was popular especially with Australians -- it was a sad day.
In northern Thailand, mourners gathered Tuesday at a Buddhist temple to say their final farewells to 19 of the lives lost in last week's day care center massacre. Orange colored flames lit up the sky during the cremation ceremony. Coffins were dressed with flowers, with flashing lights, decorative cloth, pictures of some of the young victims along with stuffed toys were there.
[01:49:58]
VAUSE: Here's the leader of the temple reflecting on the sermon.
(BEGIN VIDEO CLIP)
PRAKRU ADISAI KIJANUWAT, ABBOTT: Our intention is to send the children and their teacher off to heaven. The teacher will take the lead and the 18 children will follow her steps to heaven according to our beliefs, and the desires of her parents, and everyone here, to send them off.
VAUSE: Most of the 36 killed in this massacre were little kids, (INAUDIBLE) wife and stepson who he killed before taking his own life. The largest mass killing by an individual in Thailand's history.
We'll be right back.
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VAUSE: Facebook parent company Meta is aiming for a whole new type of customer, one with a lot of money to throw around and doesn't mind wasting it with the release of new virtual reality headset. The Meta Quest Pro debuted on Tuesday, priced at $1,500 -- four times the cost of Meta's cheapest head sets. But this new model isn't your average gamer. The Quest Pro, being
marketed to businesses with a suite of new mixed reality features more aimed at architects and designers.
Go get them while they are fresh.
Three fishermen lucky to be alive after a weekend trip which turned into a nightmare made out of sharks -- a lot of sharks. Rough seas for more than 24 hours after their boat sank off Louisiana's Gulf Coast.
CNN's Randi Kaye has the story of their dramatic rescue.
(BEGIN VIDEO CLIP)
RANDI KAYE, CNN CORRESPONDENT: 28 hours, that's how long three Louisiana fishermen were stranded in shark-infested waters in the Gulf of Mexico. Here is what they told ABC News.
PHONG LE, RESCUED BY U.S. COAST GUARD It made a distress call on the VHF radio to the Coast Guard and let us know that we've taken on water. We've taken water and our vessel is sinking. And not even seconds after that, the boat was nearly halfway in the water.
KAYE: Halfway underwater and no land in sight. The only thing they could see were sharks -- lots of them.
LUAN NGUYEN, RESCUED BY U.S. COAST GUARD: It bit the life vest and it didn't touch me. It bit the vest and boom, it hit. I pushed them in the face. And I think that is where I caught these injuries on my hands.
So I took my two thumbs and jab them in the eyes and he took off.
KAYE: The man had tied a couple of coolers together to form a raft. They tried to stay afloat and out of reach of the sharks.
LE: That was critical in surviving, tying the ice chests together.
KAYE: But time was not on their side. The men had set out for a fishing trip from Venice, Louisiana on Saturday morning. When they did not return home, friends and family began to worry and called the U.S. Coast Guard.
Somehow, in a stroke of luck Sunday, one of the fisherman was able to text a friend his location in the moment before his phone died .
NGUYEN: I sent my location to my friend. And it was only 2 percent left. The minute I sent it, I see him trying to reply to me. And the phone cut off. I ran out of battery.
[01:54:48]
KAYE: That front alerted the Coast Guard which search for the men by air and sea. The search area spanned more than 1,200 square miles, slightly larger than the state of Rhode Island. And then, another lucky break. The men had been in the water for more
than 24 hours already. But within just two hours of receiving the text for help, they spotted the men from the air, 25 miles off of the Louisiana coast.
By now, it was around noon on Sunday. One man was hoisted up to the chopper, with the help of a rescue swimmer.
UNIDENTIFIED MALE: Halfway up.
SEAMAN ANDREW STONE, U.S. COAST GUARD: The fixed wing aircraft saw the other two men floating about a mile away. That's when we sprung into action and sped the boat up to get these guys. We pulled up to them and they were getting harassed by sharks when we pulled up.
KAYE: He says the sharks where about four feet long.
STONE: One of the men had been bitten up on his hand as you saw and was pleading into the water. His lifejacket -- his life preserver had been ripped about halfway down by the fish. So, we got him on board first. Pulled him out of the water.
KAYE: All three fishermen suffered from hypothermia.
UNIDENTIFIED FEMALE: They had multiple lacerations on their hands Almost down to the bone. We actually were able to recover one of the lifejackets that had been eaten through by a shark.
KAYE: A nightmare fishing trip with a happy ending, one these men will never forget.
And all three men were taken to University Medical Center in New Orleans. They are recovering but of course one of them no surprise is saying he is in no rush to get back into the water.
Just imagine those conditions, three to five-foot waves, surrounded by sharks, the water was cold. They had no idea if anyone was actually coming to get them. They were 25 miles offshore. And they might not have even known that.
Luckily they had those coolers which had some water in them. So they were able to stay hydrated. But again, just imagine, 28 hours or so in those waters, wondering if help was ever going to come.
Randi Kaye, CNN -- Palm Beach County, Florida.
(END VIDEOTAPE)
VAUSE: NASA says the world's first ever mission to change the motion of an asteroid in space was a success. Last month, NASA slammed a spacecraft into an asteroid. The redirection -- double-asteroid redirection test or DART as it is called seen as a success because the smaller asteroid, the orbit was changed by around 32 minutes.
The orbiter (INAUDIBLE) around the large asteroid. An image taken by the Hubble telescope on Saturday shows the debris, which broke off from the smaller asteroid.
We could confidently say right now, no asteroids are currently threatening the earth which is good news. NASA calls the test a watershed moment for planetary defense and all of humanity. Sleep easy.
Thank you for watching CNN NEWSROOM. I'm John Vause.
The news continues next with my colleague and friend Lynda Kinkade.
Hope to see you right back here tomorrow. thanks for watching.
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