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Rishi Sunak To Become U.K.'S Next Prime Minister; Russia Makes Unfounded Claims Ukraine May Use Dirty Bomb; Russia Moving Officials And Civilians Out Of Kherson; Committee To Protect Journalists Says At Least 40 Journalists Arrested Amid Crackdown On Protests. Aired 12-1a ET
Aired October 25, 2022 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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LAILA HARRAK, CNN ANCHOR: This is CNN NEWSROOM. I'm Laila Harrak.
Ahead this hour, third time's the charm, Britain's third prime minister in three months hopes to end the political and economic chaos gripping the country.
The West slams Russia's dirty bomb claims which are fueling fears of an uncontrolled escalation in Ukraine.
And U.S. officials accuse several people of spying for the Chinese government.
A historic moment for the U.K. In the hours ahead, Rishi Sunak will become the country's new prime minister, the third in just seven weeks.
Mr. Sunak won the Conservative Party's leadership race, setting him up to become the youngest prime minister in more than 200 years, and the first person of color to hold the job.
They'll have an audience with King Charles where he will officially be appointed to the post.
Mr. Sunak is replacing Liz Truss who stepped down after just 45 days amid political and economic turmoil.
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RISHI SUNAK, INCOMING BRITISH PRIME MINISTER: We now need stability and unity. And I will make it my utmost priority to bring our party and our country together. Because that is the only way we will overcome the challenges we face and build a better, more prosperous future for our children and our grandchildren.
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HARRAK: Mr. Sunak is promising to tackle the challenges including a major economic crisis, but has not yet given any details on his planned policies, while the 42-year-old last served as Britain's finance minister.
Mr. Sunak was first elected to Parliament back in 2015 before taking on his first major government role as chief secretary to the treasury in 2019. While he's now tasked with bringing together his own party and the country and it calls for a general election.
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ANGELA RAYNER, BRITISH LABOUR PARTY DEPUTY LEADER: Labour thinks that we should we be having a general election. I think everybody who I've spoken to the public have said we should be having a general election. There is no mandate now, the conservatives have completely broken their promises, broke our economy. And now they want to see a general election.
They can't just keep doling out prime ministers every month because they're in total chaos and they've lost control of the market and haven't got any ideas of how they're going to tackle the cost of living that people are facing.
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HARRAK: CNN's Bianca Nobilo has more on Britain's next prime minister and the long list of challenges that await him.
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BIANCA NOBILO, CNN CORRESPONDENT (voice over): After making the runoff in the second leadership contest in as many months its second time lucky for Britain's new Prime Minister, Rishi Sunak but that is where his luck runs out.
Sunak inherits an economic nightmare stoked by soaring inflation, war in Europe, a party at its lowest level of popularity in a generation, eating itself alive, changing prime ministers at a pace never seen.
LIZ TRUSS, BRITISH Conservative Party LEADER: I am resigning.
NOBILO: The last Liz Truss became Britain's shortest serving leader ever at a mere six weeks. But the former chancellor has not sugar coated the challenges Britain faces, assuring that he has the economic credentials to steer the nation through the crisis.
SUNAK: We have to be honest, but borrowing your way out of inflation isn't a plan. It's a fairy tale.
NOBILO: The predictions he made about the impact of Truss's tax cutting economic plans were vindicated.
Born to parents of Indian descent, Sunak is Britain's first person of color to become prime minister. But his path to power is a tale as old as time, educated at one of Britain's most exclusive schools, Winchester College on to Oxford University like over half of the country's prime minister then into the finance industry.
After being praised for slick performances during the pandemic, he was tipped to become the next leader. Then, his political fortunes took a nosedive.
Sunak's resignation as chancellor in the last days of the Boris Johnson government was seen as being instrumental in Johnson's downfall. Then, Sunak lost the leadership contest to replace Johnson after his popularity had taken a battering, with many Johnson supporters blaming him for Johnson's end.
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The London police had fined him for attending an illegal gathering and lockdown and his wife Akshata Murty, the daughter of the Indian billionaire founder of Infosys, came under fire for her non-domicile status, sparing her a huge tax bill on her massive foreign income.
Sunak ranks among the U.K.'s richest and has been labeled out of touch with ordinary voters.
SUNAK: For friends who are in a working class but not working class, but I mix and match and then I go to see kids from an inner city state school and tell them you know to apply to Oxford in--
NOBILO: This 2001 BBC documentary clip when he was still at university later went viral and it didn't help. He since walk back that comment, but this didn't help either.
Now, Sunak leads Britain at a time when millions fear they won't be able to afford their food and heating this winter.
KEVIN HOLLINRAKE, BRITISH CONSERVATIVE MEMBER OF PARLIAMENT: I think Rishi does have the characteristics that could restore faith in our party. Yes. I mean, I think he's demonstrated that you could judge people on their actions, not their words.
NOBILO: The moment calls for a shrewd political operator, a powerful communicator, a unifier. Sunak will be tested and judged immediately.
Bianca Nobilo, CNN, London.
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HARRAK: And joining us now from Los Angeles is seen as European Affairs commentator, Dominic Thomas. So good to see you, Dominic.
Rishi Sunak is breaking barriers. When you reflect on this very moment, there's the fact that he has not been popularly elected changed the significance of this moment.
DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Yes, Laila, I think it does, and especially when it comes on the heels of the fact that Liz Truss, did not get -- was not elected through a general election.
And I think in many ways, Rishi Sunak's situation is even more problematic. Because this time around, there was no general election. And the election ended with just the M.P.s, who for the second time, in just a few months, placed him at the head of the leadership challenge within the Conservative Party, but this time around, they did not even go to the membership. And so, that I think has taken therefore, Laila to a new level.
HARRAK: To a new level, his economic credentials, obviously, Dominic speak for themselves. But do we know where he stands on other issues?
THOMAS: Well, I think that that's where the bigger question comes in. He's been talking about unity moving forward.
I think ultimately, there are two ways of thinking about that. Unity can mean bringing the party together with this majority that they hold with the time that they have, if they can hold off to a general election, and push through on various policies pertaining to the economy, to society, and so on.
Where I think it gets more problematic is that if they're unable to sort of work with that kind of model of unity, then ultimately what you end up doing is bringing people together, yet again, as with the Brexit debate, and coalescing around being against something.
In other words, against the Labour Party, and issues around immigration, and so on.
In other words, going with that right-wing side of the party that has been more adept at instrumentalizing voters through emotions and through a kind of populist agenda.
I don't think that's the direction that he wants to go in. But it's going to be interesting to see how he goes about building the cabinet. And I think that will send a very strong message as to the initial direction he's going to go in the few days that we will have to write the ship after the storm.
HARRAK: Rishi Sunak is known as the chancellor. But what kind of prime minister do you think he is going to be?
THOMAS: Well, when you compare him too many of the people in the Conservative Party, he's a relatively new figure, and somewhat untested one could say. He was for a short period at the helm as Chancellor of the Exchequer, and he's incredibly young to be taking over this position at just 42 years old.
So, I think that there are going to be some questions around that sort of maturity and ability to bring people together.
But on the other hand, and one hopes that that youthfulness, that connectedness to some of the more important and urgent issues of the 21st century might help him shape things in new directions.
The question is how much leeway he has, as he has to on the one hand balance this incredibly fractured Conservative Party, while at the same time knowing that the pressure from the general public and from the opposition is going to be absolutely enormous to go to a general election.
And if they seem to be inconsistent or uncertain, they will be looking out for that. And that will -- that will further weaken, because ultimately, the number one mission that he has ahead of him is to win a general election and that is going to be hanging over him in the weeks and months and years to come if he's able to hold on that long.
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HARRAK: Exactly. It will be hanging maybe above his head as a dark cloud. Do you expect the clamor for a general election now to die down or to grow even louder?
THEODORE: I think that essentially it's no, it's going to -- it's going to be there. The ultimate goal of the opposition, of course, is to push for a general election.
I think there will be some moment of patience to see whether in conjunction with his cabinet, and he's able to make tangible changes. But we're a long way away from the debates and the emotions around Brexit.
The people are concerned, the electorate are speaking to their -- to their M.P.s about this particular --about all the economic issues that are there.
And unless there's tangible policies that can be communicated and translated to the general public in a short term, that pressure to go to a general election is going to be on him.
And at this particular juncture, we know that the Conservative Party is not going to fare well in that. So, it's an enormous task that he has and in many ways, an unreasonable task to be placed on the shoulders of somebody who is so young and around whom there is a tremendous level of expectation within the party now.
HARRAK: Dominic Thomas in Los Angeles, thank you so much.
THOMAS: Thank you, Laila.
HARRAK: Well-wishers for Rishi Sunak are coming in from around the world, European Council President Charles Michel tweeted his congratulations, adding, working together as the only way to face common challenges and bringing stability is key to overcoming them.
U.S. President Joe Biden offered his congratulations during a White House reception celebrating Diwali, the Hindu festival of lights.
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JOE BIDEN, PRESIDENT OF THE UNITED STATES: Pretty astounding, a groundbreaking milestone and it matters, it matters.
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HARRAK: Members of the U.K.'s large Indian community are also celebrating Sunak. A Hindu temple in Southampton, co-founded by his grandparents extended its firework program to mark both the festival Diwali and Sunak's win.
The temple's president says this is a Barack Obama moment for people of Indian or South Asian descent in the U.K. Here's how some members of London's South Asian community are reacting.
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UNIDENTIFIED FEMALE: So many Asian living here, and I am living here in this country about 42 years -- since 42 years, you know. So, it is a long time, so anything can happen, you know?
When you are living in a multicultural society, you know, certainly (INAUDIBLE) and for what country.
UNIDENTIFIED MALE: Being somebody who's nonwhite myself, I would have wanted somebody with a few more, you know, more scruples probably, being bit more left leaning maybe, especially coming from you know, a minority and having suffered certain things, you know, you would want somebody to understand and I feel like he doesn't, I might be wrong. Let's see.
UNIDENTIFIED FEMALE: Oh, (INAUDIBLE) doesn't make any difference because he is born in England. And he's born and brought up here only, so I don't think so there is any difference.
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HARRAK: Well, just ahead, dozens are reported dead in a military airstrike in northern Myanmar. Find out why the attack is causing outrage in the international community.
Plus, Russia insists Ukraine may use a dirty bomb on the battlefield. We'll explain how the Ukrainians are trying to disprove that claim.
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HARRAK: As many as 50 people are dead after a military airstrike in northern Myanmar on Sunday, that's according to local media. CNN cannot independently verify the number of deaths. This video was shared by a rebel group in the region and they claim it shows the aftermath of the attack.
According to Reuters, the strike had a concert organized by an ethnic minority group opposed to the ruling military. Ambassadors of 14 countries signed a joint statement criticizing the military authorities saying this attack underscores the military regime's responsibility for crisis and instability and its disregard for its obligation to protect civilians and respect the principles and rules of international humanitarian law.
The Palestinian health ministry says at least five people have been killed in the West back after Israeli forces conducted arrayed against an armed group.
They say at least four Palestinians died during the operation itself and a fifth person was killed during ensuing protests against the raid.
Israel says it was trying to shut down a militant hideout which it says was used to manufacture explosives.
The U.N.'s nuclear watchdog has accepted an invitation to examine two of Ukraine's nuclear sites. The Ukrainian government requested the inspections to try to disprove claims that it might use an explosive mix with radioactive material on the battlefield.
Russia has insisted without any proof that Ukraine plans to use a so called dirty bomb on its own territory in a false flag operation.
And according to Reuters, Russia will raise the issue to the U.N. Security Council on Tuesday. But Ukraine and the West reject Moscow's allegations.
And NATO's Secretary General says Russia must not use it as a pretext to escalate the conflict.
The U.S. has suggested it's actually Russia who might use a dirty bomb and warned of consequences if it does.
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NED PRICE, STATE DEPARTMENT SPOKESMAN: We're concerned when we hear this type of patently false disinformation emanating from the Kremlin. We know the Kremlin's track record when it comes to these types of claims.
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HARRAK: All of this is happening as Ukraine is trying to retake the southern city of Kherson from the Russian occupiers. Ukrainian defense official says Russia is bringing in new military units to push back Ukraine's offensive, but at the same time, the Russians are also withdrawing their administrative services from the area.
And as Fred Pleitgen reports, they seem to be taking Ukrainian civilians with them.
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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): As Ukrainian forces continue to make gains in the south of the country, Moscow accelerating the evacuation of people from the area around Kherson. Ferries bringing tens of thousands across the Dnipro River, the Russian state to safety, Ukraine says these are essentially deportations.
UNIDENTIFIED FEMALE (through translator): My mother needs medical treatment she's ill, and of course we're afraid for our lives. We live not far from the Antonivskyi Bridge. I think everything will be fine. Kherson will hold out.
PLEITGEN: Local officials believe this could be the beginning of a full Russian retreat from this area.
SERHII KHLAN, KHERSON REGIONAL COUNCIL MEMBER (through translator): The occupiers and collaborators are leaving the west part of the region in quite a dramatic way. This happens along with the total looting of Kherson city and the region west of the river.
PLEITGEN: But Ukraine's military intelligence say they believe Russia is actually building up its forces here for a massive stand, rather than readying for a withdrawal.
But as Vladimir Putin's troops lose ground, officials in Moscow are making troubling accusations. In a call with Secretary of Defense Lloyd Austin, Russia's defense minister Sergei Shoigu, alleging without any evidence that Ukraine is planning to detonate a nuclear laced improvised device, a so called dirty bomb.
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A Russian general adding to the claims:
LT. GEN. IGOR KIRILLOV, RUSSIAN DEFENSE MINISTRY (through translator): The provocation is aimed at accusing Russia of using weapons of mass destruction at the Ukrainian theater of operations that would launch a powerful anti-Russian campaign in order to undermine the confidence in Moscow.
PLEITGEN: He have sharply rejects the allegations, even asking the International Atomic Energy Agency to inspect its civilian nuclear sites. The IAEA already has staff in the Zaporizhzhia nuclear plant trying to prevent an atomic disaster there.
Ukraine's president hurling the allegations back at Moscow.
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Never get more Russia be able to dictate anything to anyone. It no longer has the potential to dictate, the world sees that. Russian potential is being wasted now in this madness on a war against our state and the entire free world.
PLEITGEN: The Russians continued to hit Ukraine with long distance missiles and drones this weekend, the Mykolaiv and elsewhere.
The Russians are continuing their air campaign against the public infrastructure of this country, hitting civilian areas like right here, killing and wounding scores of people.
But the air campaign is also taking a massive toll on the energy infrastructure of this country, leaving hundreds of thousands without power.
The Ukrainians say Russia's airstrikes won't stop there advance. Kyiv's army looking to retake as much of their territory as possible before winter sets in.
Fred Pleitgen, CNN, Zaporizhzhia, Ukraine.
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HARRAK: Jill Dougherty is an adjunct professor at Georgetown University, CNN contributor and former CNN Moscow Bureau Chief. She joins us from Washington with more. Russia's claim that Ukraine may exploit a dirty bomb on its own territory. What is their thinking? What's the strategy here?
JILL DOUGHERTY, CNN CONTRIBUTOR: You know, it's almost hard to say what the strategy is. But it appears that whether obviously, they're accusing Ukraine of trying to do this and plotting to do this.
So, what they're saying officially is that, if this happened, if Ukraine set off a dirty bomb, Ukraine would blame it on Russia. And it would launch this kind of, you know, worldwide criticism of Russia, a campaign against Russia, that seems to be their rationale.
But a lot of it doesn't quite follow from that. Because number one, there really is no evidence. Now, I've seen the tweets and the other social media coming from the Russian government, specifically, the Foreign Ministry, showing the components that Ukraine could use, excuse me, but that does not mean that there's actual proof that they have a weapon.
HARRAK: There's been this sudden flurry of contacts initiated by Russian officials, most notably the Russian defense minister, who has been on the phone with his U.S. counterpart, is this a genuine desire for dialogue? What does it signal to you?
DOUGHERTY: Well, we don't know everything that they talked about. But this would appear that it's part of this outreach to get the message out that Ukraine, supposedly and this is denied by the West, is plotting this attack.
It looks as if it's part of an organized campaign by the Kremlin, because you see it popping up in the Russian media, etcetera.
So, I think, you know, the chances for a dialogue are there, but they're not happening on other subjects, but this is one thing is that Russia wants to get across to undermine Ukraine.
And also, you know, when reports like this come out, it destabilizes things. It sows of course, confusion, and sometimes chaos. But it does not appear to be working at this point.
HARRAK: It doesn't appear to be working at this point because so far, these allegations of a dirty bomb don't seem to intimidate Western allies for instance, out of supporting Ukraine, is that encouraging?
DOUGHERTY: Well, it's encouraging for Ukraine, of course, because you do hear from the United States, from the U.K., from France, etcetera, that they will continue to support Ukraine.
So, I think the Russian gambit isn't working out the way they wanted it. But don't forget, you know, this is -- this false flag operation, if that's what it is, and it appears to be is actually an old technique. It's been used by Russia, it was used in the old Soviet days, which is essentially, you know, to accuse the enemy of plotting to do the same thing that you are plotting to do.
Now, we don't know whether Russia would actually, you know, release some type of dirty bomb in Ukraine. We simply don't know that. But it is possible.
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So, I think here we have a classic example of a false flag operation.
HARRAK: Jill Dougherty, thank you so much.
DOUGHERTY: Sure.
HARRAK: Hundreds of people in Iran are now facing criminal charges for taking parts in anti-government protests. Details on that and the latest demonstrations, next.
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HARRAK: You're watching CNN NEWSROOM. I'm Laila Harrak.
An Iranian court has charged more than 300 people with conspiracy and collusion to damage national security, according to state aligned media.
For the demonstrators face a much more dire charge of war with God, which could lead to the death penalty. While this legal action comes more than five weeks into anti-government protests that have erupted across Iran, many of them on university campuses. Activists outlets like the student news network posted video of this rally in Tehran on Monday. And IranWire says these images show students in the city of Dezful chanting freedom.
Meanwhile, at least 40 journalists are among those who have been arrested by Iranian authorities, this according to the Committee to Protect Journalists.
CNN's Nada Bashir picks up the story.
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NADA BASHIR, CNN REPORTER (voice over): Women, life, freedom, a rallying cry that is only growing stronger as protests in Iran enter their sixth week sparked by the death of 22-year-old Mahsa Zhina Amini, who died in the custody of Iran's notorious morality police in September.
But as the regime intensified, its brutal and deadly crackdown on protesters, it's also scrambling to control the narrative, jailing at least 40 journalists as protest first began, according to the CPJ.
YEGANEH REZAIAN, SENIOR RESEARCHER, COMMITTEE TO PROTECT JOURNALISTS: These are just estimation, I'm sure that correct tally is over 400. Several of the cases of these journalists that we have covered as soon as they reported about that news on their Twitter channels, the next day they were arrested.
BASHIR (on camera): And just walk me through the tactics being used by the Iranian regime. How are journalists in Iran being repressed?
REZAIAN: Security forces usually read the homes of journalists after midnight in order to create an environment of scare and fear.
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They usually transfer these journalists immediately to solitary confinement. In most cases, they don't let the journalists have access to a lawyer.
BASHIR (voice-over): Much of Iran's media is under state control. With journalists rejecting the state's narrative facing harsh penalties. Among them Niloufar Hamedi, one of the first journalists to break the story of Amini's death in Iranian media.
UNIDENTIFIED MALE: We know that Niloufar has been held in solitary confinement.
BASHIR (voice-over): Here in London, journalists at the pro reform news outlet IranWire, which has been working with CNN to cover the ongoing protests, are meticulously documenting the detention of journalists in Iran.
UNIDENTIFIED MALE: One of them needs to be confirmed.
BASHIR (voice-over): It is a growing list with a concerning lack of clarity on where many of these journalists are being held. Among them are citizen journalists, bravely documenting the regime's crackdown on their phones and on social media.
MAZIAR BAHARI, IRANWIRE: So for a citizen journalist inside the country are the most important colleagues we have. And without them, we would not be able to operate. These are the peoples who risk their lives in order to report.
BASHIR (voice-over): With internet blackouts being used by the Iranian authorities as a tool to stem the spread of information, the role of journalists on the ground bear witness to atrocities perpetrated by the Iranian regime. It is growing more important and more dangerous -- Nada Bashir, CNN, London.
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HARRAK: The U.S. Justice Department is cracking down on alleged Chinese spies. Attorney General Merrick Garland has announced charges against six people. Four are accused of working under the cover of a fake think tank to recruit Americans to work as assets for the Chinese government.
Prosecutors say they tried to bribe their targets with lavish gifts, including all expenses paid trips to China.
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MERRICK GARLAND, U.S. ATTORNEY GENERAL: The indictment alleges that between 2008 and 2018, the defendants used the cover of a purported Chinese academic institute to target, co-opt and direct individuals in the United States to further the PRC's intelligence mission. Those directives included an attempt to procure technology and equipment from the United States and to have it shipped from China. They also included attempts to stop protected 1st Amendment activities, protests here in the United States, which would've been embarrassing to the Chinese government.
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HARRAK: Two others are accused of trying to undermine the U.S. government's case against a Chinese telecommunications company. A person familiar with the investigation tells CNN that company is Huawei.
And in China, speaking out against the government and its strict zero COVID policies are rare in public. So protesters are now turning to a more private venue to vent their anger. CNN's Selina Wang reports.
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SELINA WANG, CNN CORRESPONDENT (voice-over): Graffiti with angry messages scribbled all over bathroom stalls might be a common sight in much of the world but not in China.
The Chinese character scrawled in this Beijing bathroom reads, "anti dictatorship, anti COVID tests." Messages like this are spreading in bathrooms in several Chinese cities. It is because public restrooms are one of the only places in tightly surveiled China with out security cameras.
This graffiti says, "Remove dictator and national traitor Xi Jinping."
Some of them are even written in English. "No to COVID test, yes to food, no to lockdown, yes to freedom, no to great leader, yes to vote. Don't be a slave, be a citizen."
Their messages copy the slogans written on two banners hung on a busy overpass in Beijing. A rare protest in the capital just days before the start of the Communist Party Congress.
The banners cleaned up and quickly censored from Chinese social media. But it did not stop people from replicating the act around the world. The same slogans are hung on London's Westminster Bridge and draped over the Chinese embassy in London.
But inside China, public displays of dissent toward Xi are extremely rare. It can lead to long prison sentences or even worse. We spoke to one man who graffitied in a bathroom. We are shielding his identity because of fears of retribution.
UNIDENTIFIED MALE (through translator): I had to wear a mask. And when I was writing, I was worried someone might catch me. We can only write slogans in places like bathrooms to express our political views. It is so pathetic. We've been suppressed to this degree.
WANG (voice-over): In another Chinese city, a person wrote the same slogans with a picture of Winnie-the-Pooh in a crown, canceled. [00:35:00]
WANG (voice-over): China has censored any images of the cartoon character being compared to Xi. The author texted CNN, "I hope people who see my slogan can start changing their minds, realizing that they have been brainwashed."
We have no way of independently verifying all of the graffiti. And it is unclear how widely held these views are in the police state. But frustrations in China over the country's zero COVID measures are growing.
Harsh lockdowns over a handful of COVID cases, constant COVID testing, mask quarantine facilities, anti Xi slogans are rapidly spreading from China to campuses in America and around the world.
And in Paris, an outdoor play to parody Xi Jinping's rule, Xi dressed up in the emperor's clothes, then being dragged down by COVID enforcers.
UNIDENTIFIED MALE (through translator): If we don't do anything it means that we are willing to be ruled by the CCP. When I saw the graffiti in that bathroom, I started crying. It shows that some of the Chinese people want democracy and freedom of speech. And they're willing to pay a price for it.
WANG (voice-over): Yet Xi's power is ironclad. The public's anger reduced to scribbles in bathroom stalls. And even those will be quickly painted over -- Selina Wang, CNN, Hong Kong.
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HARRAK: Hong Kong stocks are trying to recover from their worst day in almost 14 years. The Hang Seng plunged nearly 6.5 percent on Monday. The index is on a bit of a roller coaster today. Let's bring in CNN Kristie Lu Stout, live in Hong Kong for you.
Kristie, investors gave China's power reshuffle a thumbs down on Monday.
What is the market picture today?
KRISTIE LU STOUT, CNN ANCHOR AND CORRESPONDENT: Well, investors are still unnerved and Chinese financial markets struggling to recover after that huge and historic market selloff on Monday.
We have been monitoring the Chinese markets closely. Let's bring up the latest data for you. They have been able to bounce back from some territory of ground that was lost earlier today. You can see the Hang Seng up 0.9 percent. The Shanghai composite gaining about 0.75 percent.
The Chinese currency today has reached a new 15-year low against the U.S. dollar. So we are monitoring that as well. Of course it was on Monday when the Hong Kong Hang Seng index had its worst day since the 2008 financial crisis. Tech stocks slammed in particular, like Tencent, Alibaba. These are
Chinese tech giants. They lost over 11 percent in value on Monday, losing a combined value of $US 54 billion. U.S. listed Chinese tech shares also plunged.
Despite the fact that a rosier than expected third quarter GDP report came out rather late but came out on Monday, investors and markets are spooked by Xi Jinping, the Chinese leader and his recent power grab.
He was at the 20th Communist Party Congress when the Chinese leader not only secured the unprecedented third term as leader of the Communist Party but also packed the politburo standing committee with his loyalists.
He also pushed out experienced economic policymakers like the head of the Peoples Bank of China, like Li Qiang, the premier of China; like Liu He, who is the vice premier of China.
Earlier today we have been speaking to a number of economists, asking why investors are still so concerned. I will show you this comment from Justin Tang, head of Asian research at United First Partners.
He says "The concern is the lack of checks and balances in a partisan committee. Mr. Xi has never been supportive of consumer tech stocks. And the market expects that stands to continue or even more restrictions to arise," unquote.
And in a research report we heard this from Julian Evans-Pritchard of Capital Economics, who writes, "The outlook for China remains gloomy. There is no prospect of China lifting its zero COVID policy in the near future. We don't expect any meaningful relaxation before 2024. That is almost two years from now."
Analysts also pointing out that there are additional headwinds that are hitting the world's second largest economy. It is not just the power grab by Xi Jinping, it is not just the zero COVID policy. You also have China slumping property market as well as concerns about global economic growth. Back to you.
HARRAK: Kristie Lu Stout reporting in Hong Kong thank, you so much.
STOUT: You got it.
HARRAK: European activists stocked up on snacks to use in protest over the weekend. How they used cake and mashed potatoes to speak out against climate change -- when we return.
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HARRAK: Harvey Weinstein's second sexual assault trial began in a Los Angeles courtroom on Monday. Prosecutors say that eight women will testify they were assaulted by the former Hollywood film producer.
Among them, Jennifer Newsom, wife of California governor Gavin Newsom. Weinstein's pleaded not guilty to the charges which stem from a series of incidents alleged to have happened between 2004 and 2013.
The legal team for a U.S. basketball star jailed in Russia says she is not expecting miracles. A court is expected to hear Brittney Griner's challenge against her nine-year prison sentence over the coming hours.
She was arrested at a Moscow airport in February and accused of having cannabis oil in her luggage. Meanwhile, the U.S. State Department is signaling that there may be progress in freeing Griner and U.S. Marine veteran Paul Whelan, who has also been imprisoned by Russia.
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NED PRICE, U.S. STATE DEPARTMENT SPOKESPERSON: I can say there have been active discussions, including in recent days. But our imperative is to see Paul Whelan and Brittney Griner returned home. We are not going to do anything, to say anything publicly that could impair that ability.
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HARRAK: While Bill Richardson is the former U.S. ambassador to the U.N., following a trip to Moscow last month, he says he believes that both Griner and Whelan could be released by the end of the year.
Now four people have been arrested in London after a wax figure of King Charles was defaced. At least two protesters smeared chocolate cake on the waxwork at Madame Tussaud's on Monday. They were demanding that the government stop granting permission for fossil fuel use.
And they were not the first climate protesters to target a museum with food. In Germany on Sunday, protesters covered Monet's "Haystacks" painting with mashed potatoes before gluing themselves to the wall.
Earlier this month, tomato soup was thrown at a van Gogh painting in London.
I am Laila Harrak. I'm back at the top of the hour with more CNN NEWSROOM. But first, "WORLD SPORT" starts after this break.
