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North Korea Continues Barrage Of Missile Launches; Ethiopia And Tigray Rebels Agree To End Two Years Of Civil War; Ukrainian Team Investigates Cases Of Sexual Assault In Formerly Occupied Towns In Kherson Region; U.S. Federal Reserve Raises Interest Rates By 0.75 Percent; Bank Of England Expected To Raise Rates From 2.5 Percent To Three Percent. Aired 12-1a ET

Aired November 03, 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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[00:59:58]

JOHN VAUSE, CNN ANCHOR: Great to have you with us. Ahead here on CNN NEWSROOM. An unprecedented 24 hours in an already unprecedented year with no lead up in a barrage of missile tests by North Korea, including a suspected launch of an intercontinental ballistic missile.

[00:00:12]

In Ethiopia, the beginning of the end of a brutal civil war, both sides agreed to permanently silence the guns and disarm.

First, he was in, then he was out. Now days later, Vladimir Putin, he's back in, rejoining a U.N. Turkish broker deal for Ukrainian grain exports. So, what was that all about?

ANNOUNCER: Live from CNN Center, this is CNN NEWSROOM with John Vause.

VAUSE: Never before has North Korea conducted this many missile tests in 24 hours, followed up by the possible launch of an intercontinental ballistic missile just hours ago.

All of this happening in what is already a record setting year for Pyongyang's illicit missile program. Never before have North Korean missiles (INAUDIBLE) or what's known as the Northern Limit Line below which North Korean ships are banned.

According to officials in Seoul, around 7:40 a.m. local time, North Korea fired what is believed to be an ICBM from an area near the Capitol, followed up an hour later with two short range missiles by CNN's tally, that makes 30 missile tests this year.

Tokyo initially feared the ICBM was on track to fly over its territory issued alerts for residents in the north to take shelter. It's now believed the missile failed in flight.

All this coming a day after the North Korean fight an unprecedented barrage of at least 23 short range missiles, a move triggered air raid alarms on an island of South Korea's east coast.

Blake Essig is live this hour in Tokyo with the very latest. So Blake, I'll bring you up to speed, where does -- where is Tokyo right now in all this? What is the tensions in the region like at the moment too?

BLAKE ESSIG, CNN INTERNATIONAL CORRESPONDENT (on camera): Well, John, I think Tokyo and the rest of the region is still trying to really figure out exactly what happened this morning. What kind of missiles were fired.

The reality here is what we're seeing from North Korea is unprecedented. Earlier this morning, South Korea's military says Pyongyang fired another three ballistic missiles with a government source saying that one of them could have been an international or excuse me, an intercontinental ballistic missile that's believed to have failed.

Now, the U.S. and South Korea condemn the latest launch calling it a serious provocation. This most recent launch comes just one day after North Korea fired a record 23 missiles in a single day, a combination of short range ballistic missiles and surface air missiles, along with 100 artillery shells that fell into the waters around the Korean Peninsula.

Now, today marks the 30th time this year that North Korea has launched missiles, this is the most missile launches conducted by North Korea in a single year in the country's history. And we still have almost two full months to go.

And it's clear that this region right now is on edge. As you mentioned, Japan actually thought that the missile had flown over the top of Japan.

In a series of tweets this morning, the prime minister's office sent out a warning to the public that a missile had been launched, urging the public living in Miyagi Yamagata and Niigata Prefectures where sirens were heard to evacuate inside a building or underground.

And just a few minutes after that, follow it up with another tweet saying that the missile had passed into the Pacific Ocean as it turns out.

As you mentioned, that was not the case. And the missile did not fly over Japan. Perhaps it's because it failed in flight. Here's Japan's Minister of Defense addressing what happened.

(BEGIN VIDEO CLIP)

YASUKAZU HAMADA, JAPANESE DEFENSE MINISTER (through translator): We detected that the missile that was launched around 7:40 a.m. might fly over Japan. So we put out a J-Alert.

But later, we have confirmed that the missile did not fly over Japan and disappeared in the skies above the Sea of Japan. So, we would like to rectify our announcement.

(END VIDEO CLIP)

ESSIG: Now this most recent series of missiles fired by North Korea shouldn't really come as a surprise after the country's foreign ministry warned of more powerful follow up measures earlier this week if the United States didn't stop its war exercises around the Korean peninsula.

The U.S.'s most recent military exercises happening now. It's called vigilant storm and started on Monday and will continue through Friday. It's worth noting that this large-scale drill between the United States and South Korea was previously scheduled and involves hundreds of aircraft and thousands of service members from each country with U.S. releasing video of its fighter squadrons performing nine operations.

And with one more day of drill scheduled, John, there could be more weapons testing by North Korea on the horizon. And a statement before Wednesday's flurry of missile launches, Pyongyang once again warned that if the U.S. and South Korea attempt to use armed forces against the North, that they would carry out a strategic mission without delay, and that the U.S. and South Korea would pay the most horrible price in history.

Now, perhaps again, that's a warning that we still could see something worse. And as of right now, John, it's believed that the country's seventh ever nuclear weapons test is imminent, John.

[00:05:07]

VAUSE: Blake, thank you. Blake Essig there live for us in Tokyo.

To New York now, Isaac Stone Fish is with us. He's a visiting fellow at the Atlantic Council as well as CEO and founder of Strategy Risks, a private consultancy with a focus on China and risk management. Isaac, thanks for being available. Good to see you.

ISAAC STONE FISH, VISITING FELLOW, THE ATLANTIC COUNCIL (on camera): Good to see you, too. Thanks for having me.

VAUSE: You're welcome. Now, the past 24 hours, has seen this significant escalation in a year in which North Korea has already conducted an unprecedented number of missile tests.

So, at what point does this stop? And how great are the chances now of a miscalculation, the longer this goes now that South Korean missiles are in the mix?

STONE FISH: This stops either when Pyongyang feels like it gets the attention that it deserves, that it gets the money, the aid that it wants from the U.S. or South Korea or Japan, or it stops when either the North Korean regime falls apart, or there's enough of a geopolitical crisis elsewhere that the world just really stops paying attention to North Korea.

VAUSE: And amid this flurry of missile fire, residents in northern Japan at one point were getting told to take shelter, train services in parts were stopped. And Tokyo seems to be talking about the need here for a nuclear deterrent of its own. Here's the minister.

(BEGIN VIDEO CLIP)

HAMADA (through translator): Based on the situation, we will consider all options realistically, without excluding anything, including counterattack capability, and continue to work on strengthening our defense capabilities fundamentally.

(END VIDEO CLIP)

VAUSE: The words without excluding anything seems to stand out there. Because Japan has a virtual nuclear capacity, in other words, they had the plans, the material, they just need to put it all together and build it. Do they do that now?

STONE FISH: The big piece of this picture is China and Japan's relationship with China. And Tokyo could very well say we need to defend against North Korea and thus we need to implement and build a nuclear program. But the real target of that would be a deterrence for China, which poses a much longer threat -- a much larger threat to Japan.

And I would argue even the short term, as well as the medium term than North Korea, but North Korea is a very good excuse for Japan to do that.

VAUSE: So, if they went ahead with that, what would be the reaction then from China?

STONE FISH: I think if Japan were to do that, it would seriously escalate tensions. But we do have to remember that China itself has a nuclear power, and Japan, South Korea are not. And so, they have to deal with both North Korea, which is a de facto nuclear power and China, which is one of the world's largest.

VAUSE: Well, the North Koreans seem to have this playbook when they do these tests, it's all about wanting to resume talks with the U.S. They start out, you know, with the crazy talk on state media, a bunch of threats, things level goes up to firing short range missiles, and then up for that long range ballistic missiles and an ICBM.

And then eventually, if it gets that far to a nuclear test, which is also considered imminent. With that in mind, here's Ned Price from the U.S. State Department, listen to this.

(BEGIN VIDEO CLIP)

NED PRICE, STATE DEPARTMENT SPOKESMAN: We continue to seek serious and sustained dialogue with the DPRK. But as we've made no secret of the DPRK, it has refused to engage.

(END VIDEO CLIP)

VAUSE: So, you know, if the missile tests are all about getting U.S. attention, it seems though that they would then refuse to talk. So, on that question of why, as in why now? How do you see it?

STONE FISH: This is less than two weeks after a very important Chinese political conference. It's just under a week to the U.S. midterms. And it's right after a major tragedy in South Korea, a stampede that left roughly 150 people dead.

And I think Pyongyang thinks this is a time when the U.S., China, South Korea are attentive. And it's too early to say whether or not they're right. And I think all sides are trying to manage North Korea's expectation and not show willingness to negotiate or concede on anything. But that appears to be the bargain that North Korea is making.

VAUSE: And up until this point, it seems for the U.S. at least, which is busy handling a war in Ukraine, you know, an economy which is in trouble of inflation, a whole bunch of issues, as well as China, North Korea sort of being in the let's get to it later on basket. It seems that that no longer should be there. It's now more obviously a pressing issue for Washington.

STONE FISH: Biden would love to resurrect Obama's policy of strategic patience, which is to do very little and hope that the problem goes away. And North Korea would love to bring Biden to where Trump was in the first two years of his term, especially right in the middle when he was willing to meet Kim Jong-Un. And he was willing to sit down and negotiate and give the leader face.

And it's -- we're right in the middle of it right now, John. So, it's early to say whether or not Biden will head to his most immediate predecessor or to Obama, but right now he is trying to seem to stick with where Obama was.

[00:10:08]

VAUSE: Let's see if that works out. Isaac, thanks for being with us. We appreciate it.

STONE FISH: Thanks for having me.

VAUSE: Two years of bitter civil war in Ethiopia appears to be coming to an end with a surprise ceasefire announcement on Wednesday.

After just 10 days of talks brokered by the African Union, representatives from both sides agreed on terms and shook hands on an agreement which is not a final peace deal, but a crucial first step towards one, that is if the ceasefire holds.

Earlier this year, a ceasefire fell apart within months and there are many reasons why this one could as well. The human toll in Tigray and elsewhere has been staggering. But with a pause in fighting, it seems critical shipments of humanitarian aid might just be able to reach those in desperate need.

We have more now from CNN's Larry Madowo.

(BEGIN VIDEO CLIP) LARRY MADOWO, CNN INTERNATIONAL CORRESPONDENT (on camera): These talks in South Africa achieved a lot more than was expected and in a much shorter period. It's a new dawn in Ethiopia, a silencing of the guns after exactly two years of the Tigray conflict. But there's a big if, if it can be implemented because it's a big one, a permanent cessation of hostilities, and also, a smooth, orderly disarmament.

This means every single member of the Tigray People's Liberation Front has to down their tools, down their guns. They have to agree to reintegrate into Ethiopian society, there was a greater restoration of services and hindered access for humanitarian supplies and protections for everybody who has been involved in this conflict.

So, essentially, letting bygones be bygones. So far, the mood music is promising.

(BEGIN VIDEO CLIP)

OLUSEGUN OBASANJO, HEAD OF AFRICAN UNION MEDIATION TEAM: This moment is not the end of peace process. But the beginning of it. Implementation of the peace agreement signed today is critical to the success of the process.

(END VIDEO CLIP)

MADOWO: This is not the first secession hostilities announcement from Ethiopia this year. Another one early in the year collapsed in August and led to more fighting.

The other big elephant in the room is Eritrea. That country was not part of these talks and was not explicitly mentioned in the announcement. But the Tigray People's Liberation Front has complained consistently about the presence of Eritrean troops in their territory, saying it was against international law.

And at this announcement event, as you read from the TPLF said, there were people within their ranks or in the neighborhood who would want to sabotage this peace deal and ask the international community to be vigilant.

So, in the weeks and months ahead, the implementation of this peace deal will be so critical to making sure there can be some semblance of normalcy in Tigray, that the people who have suffered so much can finally have some peace and that Tigray People's Liberation Front says not because they're weary of fighting, it's because the people deserve peace.

Larry Madowo, CNN, Nairobi.

(END VIDEO CLIP)

VAUSE: Russia has now rejoined a vital grain export deal reversing course just days after suspending its participation. Moscow did that over the weekend. This U.N. Turkey brokered deal, accusing Ukraine of launching drone attacks on Russian ships in Crimean waters from the humanitarian corridors which guarantee the safety of the grain exports.

Ukrainian President Volodymyr Zelenskyy's Turkish counterpart (INAUDIBLE) preserve the deal. That guarantees safe passage for ships carrying grain export from Ukraine.

Russia's president meantime says his country still reserves the right to pull out if Ukraine uses those corridors again, he says for military purposes.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): I have instructed the defense ministry to resume my participation in this work.

However, Russia reserves the right to withdraw from these agreements if these guarantees are breached by Ukraine.

(END VIDEO CLIP)

VAUSE: All those means that the deal will likely ease concerns about global food supplies. According to U.N., Ukraine normally supplies the world with about 45 million tons of grain every year. The price of grain on world markets has already come down.

On the battlefield, Ukraine says its forces have been striking key Russian targets in the occupied Kherson region. Ukrainian officials say the military hit Russian air defense systems in Kherson struck an area where Russian forces have been operating ferries to resupply troops.

All of this comes as Russian forces prepared new defensive positions on the east bank of the Dnieper River in Kherson, officials there confirmed they've been evacuating civilians, a move Ukraine officials described as evictions.

In southern Ukrainian towns once occupied by Russian forces, the damage and devastation left behind is unmistakable.

But Ukrainian investigators are now looking for cases of a hidden crime. Sexual assault carried out by Russian soldiers.

CNN's Chief International Correspondent Clarissa Ward has our report.

(BEGIN VIDEO CLIP)

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT (voice over): Day after day they go house to house, a team of investigators dispatched from the Capitol. These men are tasked with looking for cases of sexual violence.

[00:15:10]

No one was assaulted in this village, these women tell them but every home has suffered.

When Russian forces were pushed out of this area earlier this month, they left a trail of misery behind them.

Down the road, an elderly woman inconsolable asked for help.

I don't know where to sleep now. There are no windows or doors, she tells the policeman.

71-year-old Vera Alekseevnason (PH) was injured fighting on the front lines. She is alone and afraid.

OK, she wants to invite us in to see how she's living.

This is what remains of her home. Only her precious icons are untouched.

Oh my god, oh, God's mother, she says, please keep my son alive and let me see him again.

In town after town throughout the Kherson region, this is what victory looks like and it is grim. Almost every house has been destroyed by heavy fighting and the people's scarred by months of Russian occupation.

In the next village, the investigators talk to 56-year-old Tatiana (PH). We have agreed not to name the village or show her face to protect her identity.

She takes us to her brother's house where she says she was raped by a Russian soldier on August 26th.

TATIANA (through translator): He pinned me against the wardrobe and groped me. He ripped my clothes off. And I was caught in his grip. It was very hard and painful for me. I was crying, begging him to stop but with no success.

WARD: And did he say anything when it was over?

TATIANA: Do not tell anyone anything or it will be worse. That's everything he told me. And then he left. It's very hard for me.

WARD: Did you tell your husband what had happened?

TATIANA: I didn't tell my husband right away. But I told my cousin and my husband overheard.

He said you should have told me the truth but you kept silent. I was very ashamed. Very.

WARD: The shame is on him.

TATIANA: He's probably not ashamed. If he's still alive. I wish that he and all his kin were dead.

WARD: It's coming to the end of a long and emotional day. The men visit the last village on their list. Tomorrow they will head back to Kyiv to submit their findings. They have recorded six allegations of rape in their two weeks here. It must be a hard job.

It is psychologically difficult. You understand every victim is so distressed. Alexander Sidro (PH) says, but this is important work.

Most cases they say go unreported. Like so many of the horrors that took place under Russian occupation here, they remain hidden in the dark.

Clarissa Ward, CNN, Kherson region, Ukraine.

(END VIDEO CLIP)

VAUSE: This night, CNN has repeatedly reached out to the Russian military for comment but previously denied committing war crimes in Ukraine.

When we come back here on CNN, Brazil's Jair Bolsonaro presidential election loser has a message for hundreds of his supporters refusing to accept the outcome of the election as they're blocking highways nationwide.

Also ahead, fears of a recession looming even greater in the U.S. after the Federal Reserve raises interest rates for the sixth time this year. More on that later this hour.

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[00:21:47]

VAUSE: Well, the U.S. Fed did it Wednesday, the Bank of England now expected to follow in the hours ahead, both Central Bank's hiking interest rates to fight inflation.

The Fed's move puts U.S. benchmark leading rate -- lending rate rather, up to four percent, hike of three quarters of one percent.

Chairman Jerome Powell indicated the Fed may slow the frequency of interest rate hikes but suggested that big increases may be coming in an effort to cool off this record high level of inflation.

U.S. markets did not like that idea of rates going higher, the Dow shedding more than 500 points, a close of business on Wednesday.

CNN's Richard Quest has more now reporting from New York.

(BEGIN VIDEO CLIP)

RICHARD QUEST, CNN BUSINESS CORRESPONDENT (on camera): The decision by the Fed to raise rates by three quarters of a percent had been baked into the market. It was expected and had been well telegraphed.

Now, the real crunch question, what does the Fed do next particularly at its December meeting? Having given more than 300 basis points of interest rate rises, tripling of rates since the cycle began. The argument is you better wait and see. Wait for it to feed through to the economy, the so-called monetary lag, the cumulative effect.

The Fed has acknowledged that they don't really fully know what the effect is of such large increases in interest rates in today's modern economy.

Is the economy just waiting to slow down into recession? Or will they have to do more? It's called the pivot point or some people just basically saying, wait and see.

We got little indication of that from the chair of the Fed. Initially, the idea was yes, we will wait and see. And the market loved that and roared up into the green. And then at the press conference, more details with the Fed Chair acknowledging that rates will be higher at the end than initially expected.

JEROME POWELL, CHAIRMAN, FEDERAL RESERVE: At some point, as I've said, in the last two press conferences, it will become appropriate to slow the pace of increases as we approach the level of interest rates that will be sufficiently restrictive to bring inflation down to our two percent goal.

There is significant uncertainty around that level of interest rates. Even so, we still have some ways to go. And incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.

QUEST: Put it all together, we're really no closer to knowing what comes next.

Richard Quest, CNN at the New York Stock Exchange.

(END VIDEO CLIP)

VAUSE: Ryan Patel is a senior fellow at the Drucker School of Management at Claremont Graduate University. He's standing by live for us in Los Angeles with more on the Fed's move. Ryan, good to see you.

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT (on camera): It's great to see you, John.

VAUSE: OK, here's a little more from the Fed Chairman Jerome Powell on what the next few months will look like in terms of interest rate hikes, and why.

(BEGIN VIDEO CLIP)

POWELL: We continue to anticipate that ongoing increases will be appropriate. We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to two percent.

In addition, we're continuing the process of significantly reducing the size of our balance sheet. Restoring price stability will likely require maintaining a restrictive stance of policy for some time.

(END VIDEO CLIP) [00:25:07]

VAUSE: OK, so the interest rate hikes, also, no more juicing the economy with free money, right? That's what reducing our balance sheet means.

Explain the fixation, you know, two percent. Beyond the fact it's part of the mandate of the Federal Reserve, but you know, wouldn't three percent and no recession be far better outcome in all of this?

PATEL: It is but I mean, you saw the segment before, it was -- it was -- I've been on air saying this was going to be a 75 basis points. But then, we get this -- I don't know what rumor the market in the last week thinking it was only going to be 50 basis points. And then the market reacts the way it does thinking that it wasn't going to happen. And this is where the two to three percent kind of echoing to that degree.

I think part of also too with Jerome Powell, I want to be clear on this when he said the labor market, he doesn't believe it's softening and because of that -- and he doesn't believe that the wide rage price is going to be spiral, so they are trying to keep more ammo into the -- in the pile, not really pushing the recession but also ensuring that they can still go pretty hard at it.

VAUSE: Yes, we also have similar situation over in the U.K. and the new prime minister, aren't they always new? He warned that tough times will mean some hard choices, here he is law last week.

(BEGIN VIDEO CLIP)

RISHI SUNAK, BRITISH PRIME MINISTER: Mr. Speaker, I have been on as we will have to take difficult decisions to restore economic stability and confidence.

(END VIDEO CLIP)

VAUSE: And so, it shall be with the Bank of England announcing an increase in interest rates in the coming hours. What's your expectation here? And why?

PATEL: Yes, they're actually going to fight inflation even further. I think it's going to be north of 10 percent. They're not -- they're not there yet. They're going to -- I don't want to say they're lagging behind the U.S. but we've seen that in Europe.

I'm glad that you brought up the U.K. because Europe and the U.S. aren't -- are tying it together. And looking at what the Fed did today and with the midterm elections coming up, the rest of the world is watching when you talk about the top economy in the world.

So, what Jerome Powell said I think is also the Bank of England, you could probably say too, we will stay the course until the job is done. That's pretty sharp words coming from the Fed. And I think other banks are going to be doing the same thing. And that just means John, that there's going to be volatility, you

cannot ignore that and getting people to be prepared for that, I think it's clear that they could have taken the pedal off the gas right now, just to go into the holiday season to provide some momentum, this will probably would have been the moment but wouldn't have been the right move. And this is the move that they're talking about.

VAUSE: You know, you're talking about the reaction to of the Dow as Jerome Powell was speaking, let's take a look at the actual graph, because it's quite amazing.

Look at that green spike there. That's from about 2:00 p.m. At 2:30, it shoots right up. And then towards the end of the day, you see that it just goes back into the red.

But that was, you know, the expectation and the disappointment, as Powell was laying out that you know, there is more to come. But what that says to me is that this is reaction in real time to everything, you know, the Federal chairman is saying, which seems ludicrous.

PATEL: Well, I mean, John, I think part of this and I don't know why we got caught into it, even I thought it was 75 basis point, there's this hope. I think people will try to look for anything, light at the end of the tunnel, even though I mean, you and I both know pretty much that this was going to happen, yet logic told you that maybe there's going to be something better and looking for anything. And I think that tells you the situation of the economy is actually too, right?

When you have data that's not pointing at a full global recovery. And there's data that's kind of misleading in other places and there isn't this clear cut, hey, we are on recovery mode, people are looking for it, we're looking for answers. They're looking at any kind of data point that they can provide to say, everything's going to be OK.

VAUSE: You know, at school they teach us that you should never be described as good or bad, inflation bad for ordinary families. It's good for shameless greedy corporations making record profits.

In other news, the cost of Pepsi has risen 17 percent in the last three months. The third quarter profits up 20 percent. Coca Cola profits up 14 percent year on year, restaurant chain Chipotle prices to increase by more than 14 percent by the end of the year.

Third quarter profit, up a smidge, over a quarter a billion dollars, more than 25 percent. This is happening across the economy. But the cost of food is something else entirely different.

If an airline ticket is outrageously expensive, don't fly, making hard choices on what you can and cannot feed your family, that's when this starts to hurt. And we're just at the beginning of that process right now.

PATEL: We most definitely are. And I hate to say it, you know, those prices revenue is also an increase in prices per item. We've seen it even with Chipotle, I hate to call them out. But they've increased their bowl based on supply chain costs. So, that price is passing to the consumer.

Obviously, there's some margin that they're being made by many of these companies. You mentioned the consumer packaged goods that's easily passed on to the consumer.

So, you're just starting to see this, right? I mean, if inflation continues to go, that pass of price is going into consumer.

John, do you think all of a sudden any major retailer is going to go oh, $0.50 cheaper now since inflation came down? Not happening.

VAUSE: No way, but look, to be fair, we called the others before, we've called out the oil industry. We we called out others before we called out the oil industry. We've called out the airlines. Today it was, you know, the groceries.

[00:30:08]

Ryan, thanks for speaking with us, appreciate it.

PATEL: Thanks, John.

VAUSE: Well, we're just days away now from the U.S. midterm elections. Ahead, a sharp warning from President Biden about the threat election deniers are posing to democracy.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: We must in this moment dig deep within ourselves and recognize that we can't take democracy for granted any longer.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

VAUSE: Welcome back, everyone. I'm John Vause. You're watching CNN NEWSROOM.

Just hours ago, Brazil's outgoing president told his loyal supporters it was time to go home, time to stop blocking traffic on major highways.

The protests began almost soon as Bolsonaro lost his reelection bid on Sunday. CNN's Paula Newton has our report now from Sao Paolo.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT/ANCHOR: Supporters of President Jair Bolsonaro were out on the streets for a third day, and in some cases, they were violent yet again.

Now, federal officials are ordering military police to use force when they need to clear these demonstrations. That's why you continue to see sporadic events, you will see tear gas being used. You will see water cannons. Having said that, protesters by and large that we've seen have been

moved to the side. They have not actually been moved off their protest sites. And for that reason, these protests keep popping up.

NEWTON (voice-over): Even the president seemed to concede things were getting out of hand.

JAIR BOLSONARO, OUTGOING BRAZILIAN PRESIDENT (through translator): The blocking of highways in Brazil impairs people's right to come and go. It is not in our constitution, and we have always been within its limits.

You have to respect the rights of other people who are moving, in addition to affecting our economy. I know that the economy has its importance, OK? I know that you are giving more importance to other things now. It's legit. But I want to appeal to you, clear the highways. This is not, in my opinion, part of this legit manifestations. We're not going to lose our legitimacy here. Other demonstrations, you are doing all over Brazil in square (ph) cities, I repeat, part of the Democratic game, feel free.

NEWTON (voice-over): Protesters that we've spoken to says that gives them the greenlight to stay out on the streets for as long as it takes, and they're still waiting for him to decide whether or not he will accept those results.

Now, having said that, that makes an already tense transfer of power much more contentious here in Brazil, at a time when it does not need it. President-elect Lula da Silva continuing to take meetings and would do calls with international leaders and now working towards Brazil's environmental policy, as an environmental conference comes up in Egypt.

NEWTON: Through all of this, investors are keeping a wary eye on Brazil. They do want this economy to try and restart itself, especially when it comes to the issues, the entrenched issues of poverty and inequality.

Paula Newton, CNN, Sao Paolo, Brazil.

(END VIDEOTAPE)

VAUSE: Meantime, authorities in Brazil are investigating new video showing crowds making what appears to be a Nazi salute during the national anthem.

The video circulating online is said to be a rally in the state of Santa Catarina on Wednesday, one of several rallies across the country held in front of military bases.

They're supporters of Brazilian President Bolsonaro, gathered to protest the results of the election.

It's unclear who originally posted the video. CNN cannot verify its authenticity.

Nazi incitement is a crime in Brazil, and the state prosecutor says those identified here will be held accountable.

Almost all the votes have been counted in Israel, with official results expected now in the coming hours.

Projections show former Israeli prime minister, Benjamin Netanyahu's party and its ultra-nationalist allies have expanded their lead to an outright majority.

Concerns are mounting, though, over how much power those allies might wield in what could be Israeli's most far-right-win government ever.

But the president's office released a time table on Wednesday, indicating that a new government could still be a few weeks away, and consultations over who has the best chance of forming one will begin next week.

CNN's Hadas Gold reports now from Jerusalem.

(BEGIN VIDEOTAPE)

HADAS GOLD, CNN INTERNATIONAL CORRESPONDENT: Benjamin Netanyahu is poised for a big comeback with as many as 65 seats in the Israeli Parliament, far more than the 61 seats he would have needed to have a ruling majority and become prime minister.

Far better than the opinion polls showed, which in the leading days leading up to the Israeli election, showed him at just around 60 to 61 seats, at best, for him and his allies. Their result was much better than, really, anybody expected at 65.

But one of the biggest stories from election day this week in Israel is the rise of the far-right. Part of Netanyahu's allies for his next coalition will be made up of a far-right wing bloc of parties called Religious Zionism and Jewish Power.

And this party could gain as many as 14 seats in the next Israeli Parliament. That would make them the third largest party in Parliament, just behind Benjamin Netanyahu's Likud Party and the current caretaker prime minister, Yair Lapid's Yesh Atid Party.

Now, this group of parties, they are made up of people who were once considered the far-right fringe extreme of Israeli politics. One of the leaders was, in the past, convicted for inciting racism and supporting terrorism.

Another one of their leaders, once from the Israeli parliament, told other Arab Israeli members of the Israeli Parliament they don't belong there and that they should have been kicked out in 1948 when Israel was created.

But now, these types of people will have, potentially, quite a bit of power in the next government because of their numbers in the Parliament.

The question will become, what sort of ministerial positions might they get? They've made public demands for things like public security or even minister of defense. But Benjamin Netanyahu, when he's been asked about this, he says that he will become the prime minister, that he will have the largest parties, and they will set the policy and make the decisions.

But there also is a big question about how is Israel's around the world, especially the United States and newer allies, like those from the Abraham Accords, the United Arab Emirates, how what their relationship will be like with the Israeli government, if these new right-wing politicians have positions of power.

Hadas Gold, CNN, Jerusalem.

(END VIDEOTAPE)

VAUSE: Just days before the U.S. midterm elections, and President Joe Biden is effectively warning that democracy is on the ballot, urging Americans to ensure candidates who denied the results of the 2020 election do not win office.

Joe Biden rallied against what he called lies told for power and profit. He said the future of the country depends on voters' ability to confront those lies.

CNN's Phil Mattingly picks up the story.

(BEGIN VIDEOTAPE)

PHIL MATTINGLY, CNN CORRESPONDENT: Just six days out from the moment votes start to be counted, most Democrats around the country are talking about the economy. They're talking about health care, trying to find some way to hold back what increasingly looks like a red wave in these midterm elections.

President Biden taking a very different approach on Wednesday night.

MATTINGLY (voice-over): It was something that was driven, according to several advisers, by several weeks of the president grappling with the moment the country currently finds itself in.

Things really crystallized in the wake of the attack on Speaker Nancy Pelosi's husband, Paul. Now, the president is obviously close with the speaker and knows her husband, Paul Pelosi.

But it was the broader repercussions of what that attack meant and what it could portend in the future that were really the driving factor that drove the president to give these remarks that he'd been considering for several weeks.

[00:40:07]

MATTINGLY: They were sharper than very similar remarks he gave back in September 1st. They were more urgent, and they were more clear that this is a decision for voters to make, a decisive one, according to the president. For him, the stakes couldn't be higher. JOE BIDEN, PRESIDENT OF THE UNITED STATES: This is no ordinary year.

So I ask you to think long and hard about the moment we're in. Your typical year, we're often not faced with questions on whether the vote we cast will preserve democracy or put us at risk. But this year, we are.

MATTINGLY (voice-over): Now the reality here is this, as we look towards the midterm elections, White House officials know this is not the issue that is driving voters. That is the economy. That is inflation.

MATTINGLY: The president, however, still felt it was critically important to make these remarks and cast them in a very political light.

They do say that, when you talk to White House advisers, that Democrats will pay attention to these remarks. This does break through for the Democratic base. The Democratic base that has seen its enthusiasm drop over the course of the last several weeks, perhaps electorally, that as an impact.

The president's broader message will support the message he delivered in stark terms, very urgent terms, in terms that made very clear that he's concerned about the direction of the country.

Phil Mattingly, CNN, Washington.

(END VIDEOTAPE)

VAUSE: Overfishing and pollution, rising temperatures an infestation of jellyfish, the world's oceans are under threat on multiple fronts. When we come back, saving the world's ocean, a call to earth, in a moment.

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VAUSE: From our biggest cities to our most remote communities, we all rely on the oceans. And right now, they're under threat like never before.

Across the globe, incredible work is being done to try and reverse the damage. So today, CNN hosting our second annual call to earth day, a 24-hour global day of action aimed at raising awareness in environmental issues and engaging with conservation and education.

So with that, CNN's Steven Jiang joins us from the British school of Beijing. Kristie Lu Stout is at the Harrow International School in Hong Kong.

But we'll start with Steven, of course, at the British school in Beijing. Katie Vause went there.

So what are they doing for this, on this day, Steven?

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Well, John, you and I are both very proud BSU (ph) parents, and this is one of Beijing's leading international schools. And they do have a very diverse student body, but there was a common theme running through their curriculum, helping our planet.

So let's take a look at this classroom here. Hi, guys.

So can you tell me, what you are talking about here?

UNIDENTIFIED MALE: We're talking about how plastic pollution and ocean -- is affecting the ocean.

JIANG: So how does pollution of the ocean's affect climate change?

UNIDENTIFIED MALE: Well, because so the whales, because the whales are like -- because they, like, they've lots of nutrients to the ocean, but they're solid waste, so --

JIANG: You want to help him?

UNIDENTIFIED MALE: So whales really help with the carbon. So because of plastic pollution, they're really getting, like, dead, so that's a problem.

JIANG: Yes, so -- so they're obviously learning, still learning a lot about this problem. But they're also getting hands-on experience in terms of trying to address some of the challenges. And this is what these kids here are doing.

So can you tell me what you're doing here?

UNIDENTIFIED FEMALE: We are making coral.

JIANG: Why are you making coral? Why is coral -- why coral is important to the health of our oceans?

UNIDENTIFIED FEMALE: Coral is normally, like, animals in the sea, and --

JIANG: So that's why they're important, right? What about here in this group? What are you guys doing here?

UNIDENTIFIED MALE: We are writing a letter from a whale to humans.

JIANG: What's your whale trying to say to humans?

UNIDENTIFIED MALE: Basically, it's saying stop polluting the ocean with plastics and other toxins, and like, do something about it. Get -- get rid of the plastics.

JIANG: Right, so I think the message here is clear. Even though all of these kids live in a land-locked city like Beijing, the choices they make in their daily lives still affects the health of our oceans, which of course, internet climate change.

Because as they have been saying to me earlier, the oceans are the planet's lungs and (UNINTELLIGIBLE). So John, I think that's the message they're trying to really take home

with and then also doing their part to make a more positive impact -- John.

VAUSE: Absolutely, great school there in Beijing. I'm biased, though. Steven, thank you.

Let's go to Kristie Lu Stout there in Hong Kong. Also in a very school there in Hong Kong. Kristie, so what are they doing for this day in Hong Kong at Harrow International School?

KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT/ANCHOR: Hey, John.

Yes, I am here at one of hundreds of schools around the world that are marking this call to earth day, a day of action to better protect the planet.

And I have to tell you, the community here is all in, from the teachers to the students, lower primary to secondary. They're all marking this day.

This is lunchtime. This is busy, because a charity fair is happening right now. They're selling cupcakes. They're selling used jumpers, games, seaweed as well to raise money for environmental NGOs, including ocean conservation NGOs.

Over here, we met with a group of year-three students who were writing and performing ocean conservation themed poems about the perspective of a coral reef and from the perspective of the sea, and they plan to share dramatically with their peers.

Now, this day is going on here. However, we're also keeping a focus on that the theme at hand, on ocean conservation. Half an hour from here by car is an area in the new territories of Hong Kong called Pak Nai. It's where there are stunning sunsets, coastlines.

It's also, thanks to an oyster restoration project, home to an incredible array of marine life. Take a watch.

(BEGIN VIDEOTAPE)

STOUT (voice-over): Tucked away in the northwest corner of Hong Kong, with the high-tech Chinese mega city of Shenzhen in sight, is a rich habitat that is home to mangroves, soft muddy shores and oyster reefs that date back centuries.

STOUT: For over 700 years, local farmers cultivated oysters here in the mud flats of Pak Nai. In recent decades, traditional oyster farming has declined, due in part to coastal reclamation and over harvesting.

STOUT (voice-over): But conservationists like Marine Thomas have discovered that re-introducing oysters to the abandoned reefs can boost biodiversity and strengthen these shores.

MARINE THOMAS, CONSERVATIONIST: Usually, people will associate oysters with food, but less known is that oysters and other shellfish create habitats. They create reef habitats. In fact, just like coral reefs, they will bunch together and create these hard structures that you can actually walk on.

STOUT (voice-over): In a survey at the city's coastlines, researchers from the Nature Conservancy at the University of Hong Kong discovered existing reefs like these old farms could potentially act as a source of oyster larvae.

They also found that a single Hong Kong oyster can filter up to 30 liters or eight gallons of water an hour, one of the highest filtration rates recorded for the species.

Another finding? The reefs host six times more species than bare mud flaps, as piles of shelves provide shelter for worms and small crabs, attracting a variety of animals, including birds like this little egret.

[00:50:03]

STOUT: And yet another benefit: mitigating the effects of climate change. So how does the humble oyster do that?

THOMAS: So the humble oyster will also help us fight climate change if it's in a reef structure. So, if it's in a hard reef structure, that is creating a barrier. Think of it as a natural seawall. Then it's going to be creating friction on the sea bottom that will attenuate wave action. And therefore, also flooding at the back of it.

STOUT (voice-over): Since 2020, Thomas and a team of volunteers have been at work restoring this abandoned oyster farm. They dry old shells in the sun, before returning them to the water to form a base for oyster larva to attach to.

They hope to introduce millions of oysters to help revitalize the area over the next few years.

ASHLEY HEMRAJ, MARINE BIOLOGIST: One of the biggest things that always amazes me, and makes me happy is seeing all the number of crabs here. Especially here, as you walk, the crab will walk away. If you fix on it, it's quite amazing to see this. It is really, really beautiful.

STOUT (voice-over): As new oysters grow, they clean the water, provide shelter and food for walled life, and join forces with the mangroves as a coastal buffer.

A spectacular sunset descends on Pak Nai, as these small, briny creatures work to build an ever more vibrant ecosystem.

(END VIDEOTAPE)

STOUT (on camera): Oyster reefs are among the most at-risk habitats in the world. In fact, according to the Nature Conservancy, they say 85 percent have disappeared.

So the oyster restoration project that you watched just now in Pak Nai, it's also happening in many other corners in the world. Absolutely critical in reversing that trend.

And activities like this, very integral as well. A charity fair to raise money, to raise awareness for environmental NGOs like the Nature Conservancy.

I just spoke to one of the organizers here, John, and they say last year they were able to raise 5,000 U.S. dollars from this charity fair and are hoping to do the same thing this year. So we wish them luck.

Back to you, John.

VAUSE: Kristie, thank you for that. Kristie Lu Stout with a very good report there.

And thanks to the kids at Harrow International School for all they've done. Thank you.

And you at home, you can follow along with this global day of action. Please log on to CNN.com/CalltoEarthDay to see what other people are doing to answer the call. There are people answering the call, all around the world right now. So find out what you can do to help.

Time for a short break. Back in a moment.

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VAUSE: Tropical Storm Lisa, once a Category 1 hurricane, bringing heavy rains to Southern Mexico and other parts of Central America. Lisa was downgraded after making landfall Wednesday near the city of Belize.

The storm surge was predicted to be up to several feet in places.

[00:55:03]

CNN's Derek van Dam tracking all of them for us right now.

Where is Lisa? What's she doing?

DEREK VAN DAM, CNN METEOROLOGIST: Well, she's moving inland now. But, she did cause some storm surge near Belize City earlier today, once it made landfall.

Remember, the storm actually made landfall just to the south of Belize City. So they were on the receiving end of that onshore push from the Caribbean sea. And that allowed for some of the water to inundate some of the local roadways within Belize city.

Here is the specifics on the landfall near -- near Belize City. This is, again, Hurricane Lisa as it made landfall as a Category 1, 140 kilometer per hour sustained winds.

Made landfall about 4:20 Central Daylight Time. That's 5:20 Eastern Standard. And, again, police city located right about there. So, they were on the northern tier of the storm. And, that allowed for that onshore push and created some of that storm surge conditions. We're still going to have that onshore flow for the next few hours as

the system fully creeps across portions of the Yucatan Peninsula. So the potential here really for some -- some coastal erosion, high seas along the coastal areas. Certainly, a threat.

We have tropical storm warnings in place from Chetumal Southward through, basically, the entire coast line of Belize.

Now, inland, this is a flash flood threat. This storm is actually going to create upwards of 150 millimeters of rainfall across this area.

Eventually, exits into the warm waters of the bay at Kanpeche (ph), stalls out and does not become, really, a threat aside from enhancing some of the rainfall for this particular region.

You can see the storm slowly moving across this area. This is going to bring heavier rainfall into Guatemala, as well as portions of southwestern Mexico going forward through the course of the weekend.

Something interesting, too. We actually, earlier tonight, before Lisa was downgraded to a tropical storm, we had two simultaneous hurricanes across the Atlantic basin. That is the first time since 2001 since that has actually happened -- John.

VAUSE: I'm in trouble. We don't use pronouns for storms.

I apologize. Derek, thank you.

Temperatures in Europe have been rising faster than any other region in the past 30 years, according to the World Meteorology Organization. And a new report issued ahead of the U.N.'s International Climate Summit In Egypt which starts Sunday.

The data shows a gradual increase since the early 1900s. But a rate more than twice the global average in the last few decades. About half a degree every ten years.

The trend is fueling extreme weather, as well as causing more than $15 worth of damage. That was in 2021 alone.

VAUSE: Thank you for watching CNN NEWSROOM. I'm John Vause. Please stay with us. WORLD SPORT starts after a very short break. I'll see you again.

There is no WORLD SPORT. I'm back in three minutes. Stay with us.

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