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CNN International: Russia: Will Resume Participation In Black Sea Grain Deal; South Korea Responds To North Korea In Missile Tests; Brazil's President Bolsonaro Breaks Silence; Former PM Netanyahu Appears To Be On Brink Of Victory; U.S. Federal Reserve Rates Decision Due In Coming Hours; How Will The Midterm Elections Change America?; Friends & Families Mourn Loss Of 156 Lives In South Korea. Aired 8- 8:30a ET

Aired November 02, 2022 - 08:00   ET

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

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[08:00:19]

MAX FOSTER, CNN ANCHOR: Hello and welcome to CNN Newsroom. I'm Max foster in London.

Just ahead, the deal is back on. Russia says it will, once again, take part in an agreement to move critical grain supplies out of war-torn Ukraine. Plus, South Korea responds after a flurry of North Korean missile launches. We're live in Seoul for the very latest. And big U.S. political names out on the campaign trail this week, as midterm elections are just days away. How will the outcome change America?

We begin with a major development in Russia's unprovoked war against Ukraine. Moscow says it's resuming participation in the Black Sea Grain Deal that ends a standoff which had threatened to reignite a global food crisis. The agreement ensures safe passage for ships carrying vital food exports from Ukraine. Moments ago, the U.S. Ambassador to the United Nations told CNN this morning that the international pressure on the Russian President will continue.

(BEGIN VIDEO CLIP)

LINDA THOMAS-GREENFIELD, U.S. AMBASSADOR TO THE U.N.: You know Putin is really showing his lack of leadership. He is showing the world that he does not care about what the impact of what he's doing on the world. He's isolated. We will continue to isolate him. And we will continue to publicize what he's doing so that he's not legitimized in the eyes of the world, nor is he legitimized in his own country.

(END VIDEO CLIP)

FOSTER: That's the view of America. Let's begin, CNN'S Salma Abdelaziz who's live for us in Kyiv. And what do we understand about this sudden turnaround on the Grain Deal, Salma?

SALMA ABDELAZIZ, CNN CORRESPONDENT: Yes, Max. So we've just getting this information really in the last hour. What we know now is that after President of Turkey Recep Tayyip Erdogan spoke to President Putin, that deal is now back on resuming as of 5:00 a.m. Eastern time, so already in place. And I just have a statement from the Russian Ministry of Defense that I want to read you that explains their thinking into bringing this initiative back on.

It says, "The Russian Federation considers that the guarantees received at the moment seems sufficient and resumed the implementation of the agreement -- the initiative for the safe transportation of grain and food from the ports of Ukraine," that's the Black Sea initiative", "suspended after the terrorist attack in Sevastopol"

So this was Russia's point, the Kremlin's point since this weekend attack where they accused Ukraine of attacking their Black Sea Fleet with drones. They now say they have the sufficient security guarantees that they want to resume that initiative. That's crucial, Max. We'd already seen a rise in grain prices after Russia had said it would suspend the deal.

We'd already seen Ukraine saying that potentially there was dozens of ships stuck in the Black Sea. I do need to point out that over a dozen vessels were still able to leave the airports despite Russia suspending this agreement in the last few days. But this is a sign of a diplomatic breakthrough here.

Again, this deal is so important because it is the only real diplomatic breakthrough we've had through this conflict. It showed that there is at least some common ground that the international community can find. And we are seeing that that's going to begin again, that's going to be a huge relief to the international community.

FOSTER: OK, Salma in Kyiv, thank you.

South Korea accusing the North of truly crossing a line. So launching three surface to air missiles that landed just North of a maritime border between the two nations. It's a response to a flurry of missile launches from Kim Jong-un's military.

Now officials in Seoul say the regime fired nearly two dozen missiles and scores of artillery shots into the waters off the coast. And for the first time one of Pyongyang's ballistic missiles crossed the maritime border known as the North Korea limit line as the closest they've come to South Korea and territorial waters in 12 years.

CNN's Will Ripley joins us live from Seoul. These missiles aren't just getting close, they're just coming in increasing number as well.

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean, the fact that you had a South Korean Island off the coast issuing its first air raid alert in six years, and in this staggering pace. We have 23 at least missiles launched in a single day. Back in June, when they did eight in one day, that was considered a provocation. This just ratchets it up to a whole new level.

Twenty-nine launch events so far this year, Max. And, you know, artillery barrage of more than 100 artillery units fired in the waters off the peninsula as well. Some of the missiles that were fired have what's been described by Japanese officials as an irregular trajectory which could mean hypersonics, the kind that can turn in, you know, change direction mid-flight, making it very difficult to predict where they're going to land and very difficult if not impossible to shoot down because they are traveling, you know, multiple times the speed of sound.

[08:05:18]

This is the first time according to South Korea since the division of the Korean Peninsula, that a North Korean missile has landed south of what's called the Northern Limit Line. This is the de facto maritime border between North and South Korea. And in response, South Korea, shot their own missiles, you know, to the north side of that de facto maritime border.

So the escalations don't seem to be dying down, especially with a hawkish government here in North Korea, very much in contrast with the previous administration. President Yoon is all about showing force in North Korea, whereas President Moon, his predecessor, was trying to make peace with them after diplomatic efforts, which ultimately failed. And we are now right back getting close really to the tensions that we saw five years ago in 2017.

So that precision strike that South Korea conducted. Their joint chiefs saying that they're not provoking, it is the North that's provoking. And the North that's fully responsible for this. And of course, predictably, the North says the same thing about the South, pointing to the five-day military exercises between South Korea and the U.S. that are happening right now.

The Vigilant Storm drills with 240 war planes, thousands of U.S. and South Korean service members working together. Something that North Korea in their messaging in the days leading up to this barrage of missile tests on a year that has been marked by a missile testing binge by Kim Jong-un. They're saying that they're going to have more powerful follow up measures to come.

Max, what is more powerful mean? Well, it could mean a submarine launched ballistic missile, it could be mean another medium range or even an intercontinental ballistic missile test. Could they fly something over Japan, or could that be that long awaited 700-grand nuclear test? Certainly, the International Atomic Energy Agency warned about the possibility of that pretty much at any time now happening. That was last week. So it's going to be touching go the next few days here, Max.

FOSTER: Yes. Will, thank you.

And staying in Seoul, the police chief in the district where the deadly crowd surge happened has been suspended. At least 156 people were killed during a Halloween celebration on Saturday. Investigators also raided police stations across Seoul seizing internal reports and documents. Records show police were warned hours before the tragedy about a potentially dangerous situation. As the nation mourns and searches for answers, people are paying respects at makeshift memorials never seen, survivors are sharing some of their harrowing stories and remembering the victims. One exchange student says his friend was a kind soul and is looking back at their experiences in Seoul. That exclusive report later this hour.

Now India's Gujarat state is observing a day of mourning for those killed in a tragic bridge collapse. And now we've learned 54 children are amongst the 135 people who died when the bridge buckled and fell into a river. Most of those children were under the age of 10, youngest just two. The bridge had undergone renovations and reopen just days earlier. Nine people connected to the company that supervise the renovations are under arrest.

Brazil's President Bolsonaro is finally breaking his silence after losing the election to former leader Luiz Inacio Lula da Silva. On Tuesday, Bolsonaro gave a short speech in which he didn't directly concede the election but says he will abide by the Constitution. Bolsonaro's Chief of Staff says he'll work with Lula's transition team to begin the handover.

Now officials are hoping Bolsonaro speech will dampen protests where pro-Bolsonaro supporters have put up blockades and set fires on roadways since Sunday. CNN's Paula Newton joins us from Sao Paulo. Many of these protests believe that, you know their side shouldn't have lost this election, don't they?

PAULA NEWTON, CNN CORRESPONDENT: Yes. And Max, look, the President statements is just far too vague for them to believe anything else. And the fact that he actually gave voice to their concerns in that speech talking about injustice and indignation, he, of course, said that they should remain peaceful.

But listen, Max, we were with some of the protesters as that speech came through. They watched it live, it was only two minutes. And here's what one of the reactions was. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translation): This was a statement where he didn't see anything conclusive. It gives us the impression that there was something wrong with the elections. That is a plus for us to continue our stand and keep protesting.

(END VIDEO CLIP)

NEWTON: You know, Max, we've heard this from protesters again and again. In fact, they say some of them that they're taking a page from American conservatism and staying out there for what they describe as freedom and patriotism. Now, I want to be clear, these are small groups of protesters that have been fairly effective at paralyzing some streets. We've got a no new blockade on the go about 100 kilometers west of Sao Paulo right now.

[08:10:08] Having said that, Brazil's institutions or democratic institutions are holding firm. And Max, even allies of Bolsonaro, who are in charge of states and local governments are saying, look, enough is enough. Riots and demonstrations are not going to change the results of this election.

At issue, of course, Max is the fact that this was a very tight margin in this election, and it is going to reflect the difficulty in governing this country for Lula da Silva, of course, the President- elect now. Max?

FOSTER: OK. Paula Newton in Sao Paulo, thank you so much.

Now on the brink of a dramatic political comeback, former Israeli Prime Minister Benjamin Netanyahu appears set to return to power. Partial results from Tuesday's elections show Netanyahu's Likud party and its allies are on track to win a majority of seats in Israel's parliament and alter nationalist bloc that would join Likud in that ruling coalition performed well, setting the stage for the most far- right government in Israeli history.

Hadas Gold watching developments for us from Jerusalem. That's really the story here, isn't it, the rise of the right?

HADAS GOLD, CNN CORRESPONDENT: Yes, Max, without question, it is the story. Not only Benjamin Netanyahu's come back, the fact that the polls are showing right now, the exit results are showing that his block of parties may have as many as 65 seats in parliament. That's a nice cushion of at least four seats, because the majority needed in parliament is 61.

And I've seen that opinion polls leading up to election day did none of them showed that his block of parties would potentially have as high as 65. The best he was getting was 61. Everyone thought is going to be a very, very close margin. And instead, what we're seeing is that the smaller parties, especially on the left side, especially some of the Arab parties that haven't managed to pass that threshold, that having also that higher turnout that all helped Benjamin Netanyahu and his allies.

Now, what everyone is really focusing on is the rise of of this far- right party. It's called religious Zionism/Jewish power. It's two parties brought together. These were once considered the extremist fringe of Israeli politics. One of their leaders was once convicted for inciting racism against Arabs. But -- and even Benjamin Netanyahu himself once said that one of their leaders shouldn't be considered for a Cabinet position. Now, he most likely will be considered for a ministerial position.

So now the question will be, not only will they be in government, most likely they will be, but also what kind of power will they have? What positions will we get? Because that could really reshape Israeli policies on things like the West Bank, on things like Arab citizens of Israel, and that's a big concern, especially for Israel's international allies like the United States and new allies, like those -- that were part of the Abraham Accords. Max? FOSTER: OK, thank you, Hadas. We'll be back with you when we get final confirmation.

Now, in the U.S., it's decision day for the Federal Reserve. And Fed watchers say it won't be a surprise if the U.S. central bank hikes interest rates by three quarters of 1 percent. We'll know in the coming hours.

The central bankers are in a bit of a bind. The U.S. labor market isn't letting up. Great for workers but not if you're trying to call inflation and that were translated into Tuesday's lower Wall Street finish. CNN's Rahel Solomon shows us what's at stake.

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: All eyes on the Federal Reserve as policymakers meet to decide whether to raise interest rates again, and by how much. The broad expectation is that the U.S. central bank will raise its benchmark interest rate, another three quarters of 1 percent. If so, that would be the fourth in a row, something we haven't seen in modern history.

To put this in perspective, before this summer, the last time the Fed raised rates by that magnitude in a single meeting was 1994. But the Fed is also trying to tame consumer inflation that's currently hovering at 40-year highs. By raising rates, the Fed makes borrowing costs more expensive, which should slow demand and thus cool prices. But the data hasn't shown a cooling of prices, not yet at least and not in a significant way.

Also complicating, the Fed's inflation fight, red hot labor market. New employment data released Tuesday showed that job openings actually picked up in the month of September. Meaning for every one person looking for a job, there are almost two jobs available. Good news for American job seekers, not so much for the Fed.

Chairman Jay Powell has said that he would like to see better balance between job openings and job seekers because of concerns that this labor market could be driving up wages. Higher wages could then trickle into higher costs for goods and services. We'll learn much more when we hear from Powell when he speaks Wednesday afternoon. Many investors and economists around the world will be hanging on to his every word.

Rahel Solomon, CNN, New York.

FOSTER: Still to come in just one week, the political landscape in America could look very different. We'll look at what's at stake and how the outcome might change America. Stay with us.

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FOSTER: Welcome back. Now in one week's time, we'll know the results of the U.S. midterm elections. So what's at stake? And how will America change as a result? We'll have a look at the states here. The gray ones largely decided according to history, either Republican or Democrat, but these yellow states, they are undecided. So that's really where the battle lines are drawn here.

Let's go into one of them. This is the choice for Nevada Senate. You can see how close the polling is here. It's literally neck and neck between these two candidates. It shows a typical race in America. This is what's at stake, the U.S. House of Representatives, the lower house, it's already pretty much neck and neck. We could see a change in the balance of power, not just in the lower House, but also in the upper House in the Senate. It's extremely tight in both of these.

CNN's Political Director David Chalian joins us because he's going to put this into context. Because really, David, this is a global event, isn't it?

DAVID CHALIAN, CNN POLITICAL DIRECTOR: Certainly is, Max. As you noted, what the stakes are here, you know, we are so closely divided between the Democrats and the Republicans. As you just showed, in both the Senate, the upper chamber and the House, the lower chamber, razor thin current Democratic majorities that are at peril. And if indeed, Republicans, when one or both chambers, it will change the course of the Biden presidency.

FOSTER: And we want to bring up the -- a measure of the national mood in America because this is also very important, isn't it? It's what motivates people to go to the polls. And you can see the approval rating for Joe Biden is at 40 percent. They're talking about the economy being poor. Does that work against the Democrats?

CHALIAN: It does. We have a brand-new poll from CNN out this morning, Max, showing -- we asked voters what is the most important issue in the election. Far and away, 51 percent of likely voters in this poll out today said it's the economy and inflation, nothing else even comes close. There's only one other issue in double digits and that is the issue of abortion policy, but it's way behind the economy in terms of importance in voters' mind.

And then when you look deeper into, OK, so those voters who say the economy, which is a slim majority, is issue number one, how do they intend to vote? Overwhelmingly, it favors Republicans. And I'll just add one more finding from our poll, which is that Republicans also have an enthusiasm advantage. So among the people who claim to be extremely enthusiastic about voting in this election, Republicans have a 14 percentage point advantage over Democrats among that group of people.

[08:20:01]

FOSTER: Which means they're more likely to turn out and vote, right?

CHALIAN: Exactly.

FOSTER: If we look at some of the key issues that are going to come up as we expect them to come up at least in this election, economy at the top, you've mentioned that the Supreme Court in reproductive rights, take us through those two.

CHALIAN: Yes. Well, ever since the Supreme Court here in the United States overturned that 50 years of precedent with that Roe v. Wade case, going by the wayside, it put -- abortion rights, basically, front and center over the summer. And what happened is that we saw Democrats get very energized around this issue.

It's an issue where Democrats have an advantage with the public on where they stand on abortion policy, being pro-abortion rights, versus many Republicans who are anti-abortion rights. And so, we saw Democrats sort of galvanize around that. We've seen Democrats spend more money on advertising related to abortion rights in a way to energize their base voters. But the reality is, we were just discussing is, in the overall picture of the issue landscape, the economy is just so dominant.

FOSTER: OK, David Chalian, really appreciate your time. Going to very busy couple of weeks coming up.

Now, still ahead, mourners paying tributes for the victims of this weekend's tragedy in Seoul. Up next, a student recalls his last moments with his friend on that fateful night.

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FOSTER: More now on the tragedy in South Korea. Most of the 156 people killed in the crowd crush were young, they're in their 20s, among them 26 foreign nationals as well and many spending semesters abroad. CNN's Ivan Watson spoke with survivors and friends of some of those killed and filed this exclusive report.

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IAN CHANG, FRIEND OF VICTIM STEVEN BLESI: Everybody was very fond of Steven. Steven was the kindest person that ever was. He would be there for you. He was like a dear friend for everybody. A kind soul.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Ian Chang, a 21-year-old from Florida is talking about his friend Steven Blesi.

CHANG: That's me with Steven.

WATSON (voice-over): The two American university students met here in South Korea during their semester abroad in Seoul.

CHANG: It was like one of his big adventures to come here, by himself.

UNIDENTIFIED FEMALE: Show me some cooking skills.

WATSON (voice-over): The young Americans mixed class work with exploring Korea.

CHANG: He definitely like the food here for sure.

WATSON (on-camera): The barbecue --

CHANG: Yes, Korean barbecue. WATSON (voice-over): And that included late nights out in Seoul's bars and nightclubs. That is until Saturday night when everything went horribly wrong.

CHANG: I didn't think it was real, you know, the whole thing because I saw him that day, right? I just learned in the news that he passed away. It just, you know, doesn't seem to be true.

WATSON (voice-over): The two Americans plans to meet here in Seoul's Itaewon district to celebrate Halloween. But that night, Korean authorities estimate more than 100,000 other people were also coming to party here.

UNIDENTIFIED FEMALE: At the beginning, we thought it was funny.

WATSON (voice-over): Stuck in the crowd Anne-Lou Chevalier, a 22-year- old French exchange student filmed herself with friends at first laughing, but then she suddenly looks distressed.

[08:25:12]

(on-camera): You were hurt, what happened to you?

ANNE-LOU CHEVALIER, SURVIVOR OF CROWD CRUSH: At some point I had no air and we were so crushed to other people that I couldn't breathe at all, so I just passed out.

WATSON (on-camera): Unconscious.

CHEVALIER: Yes, unconscious.

WATSON (voice-over): Bystanders pulled Chevalier limp out of the crowd. She was one of the lucky ones.

(on-camera): This narrow alley was ground zero on Saturday night. Hundreds of party goers collapsed into a deadly pile up here and began suffocating under the weight of the crowd.

(voice-over): At least 156 people died. South Korea is still processing this staggering loss. Days later, lost belongings on display for grieving relatives to identify.

CHANG: So I miss Steven to tell him that, hey, don't come to our place anymore.

WATSON (voice-over): On Saturday night, Ian Chang got to the crowded neighborhood first, and warned his friends not to come. But the Atlantic native who loved hip hop and international travel never answered. The next day, authorities identified Blesi and Anne Gieske, another American student from the same exchange program as two of the many victims.

Just weeks ago, this group of friends went on a weekend hiking trip together.

CHANG: He was such a great person. Like a great friend. WATSON (voice-over): Steven and Ian shared plans for the future. Hopes and dreams that will now never be fulfilled.

CHANG: I wish I could have made more memories with him, you know? And this, I'm going to miss him.

WATSON (voice-over): Ivan Watson, CNN, Seoul.

(END VIDEOTAPE)

FOSTER: Thank you for joining me here on CNN Newsroom. I'm Max Foster in London. World Sport with Alex is up next.

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