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U.S. Federal Reserve Raises Interest Rates .75 Percent; Psychoactive Ingredient Appears to Help Depression; Kyiv to Start Emergency Shutdowns as Power Use Spikes; U.S. Accuses North Korea of Secretly Supplying Russia with Significant Number of Artillery Shells; Ethiopia and Tigray Rebels Agree to End Two Years of Civil War. Aired 4:30-5a ET

Aired November 03, 2022 - 04:30   ET

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

[04:30:00]

MAX FOSTER, CNN ANCHOR: Welcome back to CNN NEWSROOM. I'm Max Foster. If you are just joining us, let me bring you up to date with our top stories at this hour.

North Korea is accelerating its missile launches, 26 in the last two days. And now Pyongyang has fired a suspected intercontinental ballistic missile for the first time in months.

Also, President Biden and former President Trump hit the campaign trail today to make a final push for their parties. A new CNN poll confirms Americans view the economy as their top topic just five days before the midterm elections.

BIANCA NOBILO, CNN ANCHOR: And speaking of the economy, we're just hours away from the opening bell on Wall Street and the U.S. stock market is looking to rebound. But we're now looking -- and you can see futures are all not doing so well. They are all going down. Now the Dow, S&P and Nasdaq futures were all up but now were seeing a reverse but a whiplash in the market at the moment.

And it did take a beating on Wednesday after the Fed Chair Jerome Powell announced a 75 basis point hike in interest rates. So that sent markets tumbling. The Dow closing down more than 500 points. Now this is the sixth rate hike this year and the fourth one at that we've had that's been 3/4 of a point. Powell addressed why the Fed moves have been so aggressive.

(BEGIN VIDEO CLIP)

JEROME POWELL, CHAIR, U.S. FEDERAL RESERVE: We continue to anticipate that ongoing increases will be appropriate. We are moving our policy stance purposefully to a level that would be sufficiently restrictive to return inflation to 2 percent. I don't have any sense that we've over tightened or moved too fast. I think it's been a good and a successful program that we've gotten this far this fast. Remember though that we still think there's a need for ongoing rate increases and we have some ground left to cover here.

(END VIDEO CLIP)

(BEGIN VIDEOTAPE)

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Max and Bianca. The Federal Reserve made history yet again on Wednesday approving a fourth straight rate hike up 3/4 of a percentage point. It's part of an aggressive battle to bring down the white hot inflation plaguing the U.S. economy. This supersized hike brings the central bank's benchmark lending rate to a new target range of 3.75 percent to 4 percent. That's the highest since January of 2008. The Federal Reserve did exactly what the market expected and stocks rose in the first minutes after the announcement.

It appears that investors were initially pleased by a new line in the Fed's statement The central bank acknowledged that it will take into account the lag in time from when it raises interest rates to how it affects the real economy. And we are already seeing the impacts of the Fed's aggressive rate hiking path. Mortgage rates at levels not seen in almost 20 years are beginning to choke the housing market. Sales of newly constructed homes dropped 10.9 percent in September from August and were down 17.6 percent from a year ago.

Still, Fed Chair Jay Powell said incoming data show the ultimate level of interest rates will be higher than once expected. And that's despite some inflationary pressures easing.

The Employment Cost Index shows wages and salaries rose by 1.2 percent in the third quarter. That's down from 1.6 percent in the second. And through it all, the job market in the U.S. has remained tight. Job openings unexpectedly surged in September indicating there are 1.9 job openings for every available worker. Friday's upcoming jobs report is expected to show the economy added another 205,000 positions in October. That's down from last month but still historically high. Which means there's more room for more rate increases by the Federal Reserve -- Max and Bianca.

(END VIDEOTAPE)

[04:35:00]

FOSTER: Thank to Alison at the stock exchange there.

Now a top official at the Federal Communications Commission tells CNN the U.S. government should ban TikTok. Brendan Carr cited concerns the Chinese owned social media app may turn over American's data to China's government. The FCC doesn't have the ultimate say on whether to ban TikTok. But Carr says he has a little confidence there's a path going forward despite ongoing government level negotiations. TikTok hasn't responded to CNN's request for comment. But we know how teenagers are going to react to that.

NOBILO: Yes, we do. But I guess the concern is that because TikTok is owned by ByteDance was a Chinese company headquarters in Beijing. Technically the Chinese Communist Party can be compelled them to release information, data and TikTok's been under fire for aggressively harvesting for information that you don't need for the app, like calendars, geo-locating, contacts even.

FOSTER: But their argument being that they've moved service and the whole business in America to America. But I guess --

NOBILO: It doesn't seem to be allaying a lot of concerns.

FOSTER: No. A new British study has shown that a mind-altering substance in magic mushrooms could help people suffering from depression. The search has found that a single's dose of synthetically made -- how do you day that?

NOBILO: Psilocybin

FOSTER: Improve the condition in people who resist other treatments. I asked you that because you've studied this.

NOBILO: Yes, as you said studied, yes. Scientists say people who take the psychedelic drug seem to benefit after also receiving counseling about the trips that they experience. While more research is needed, the effects seem to wear off after three months. But this is really interesting because there has been studies conducted on psilocybin and its effects on depression, PTSD, alcoholism, Alzheimer's even, for about 70 years. But because the drug was so associated with counter culture and demonized, it's obviously held back a lot of progress that it might actually promise.

FOSTER: It also does creates anxiety in people because the trip can be very unsettling.

NOBILO: Yes.

FOSTER: We'll talk more about that later.

New warnings for users of dry shampoo as well. An independent lab has found high levels of cancer causing chemicals in several more brands and batches. Just last month several aerosol dry shampoos were recalled because they possibly contained benzene. On Monday, Valisure told the U.S. food and drug administration that 70 percent of the dozens of samples tested contain substantial levels of benzene. The lab is urging the FDA to quickly request further recalls and to better defined limits of benzene contamination in products.

NOBILO: A top Biden administration official is confirming CNN's reporting that the U.S. believes North Korea is secretly supplying Russia with a significant number of artillery shells.

Meantime, Russia has now rejoined a vital grain export deal reversing course just days after suspending its participation. Moscow had initially pulled back from the agreement last week, claiming that the decision came after Ukrainian drone attacks in Crimea. Russia's president says that his country still reserves the right to pull out If Ukraine uses the corridor for military purposes.

FOSTER: And in Kyiv, authorities plan to push forward with emergency shutdowns I'm power supplies just days after power was fully restored following Russian strikes. this comes after a significant spike in electricity consumption In the Ukrainian capital. Salma is there, also Clare is here in London. Salma, presumably this is because it's getting colder.

SALMA ABDELAZIZ, CNN CORRESPONDENT: You can only assume that much. But, again, Max, the unprecedent power grid here, the critical infrastructure of this city has been so frayed by just weeks of sustained bombardment. It is difficult to repair. it is difficult to sustain. It is really just limping along. So, we had seen Now for weeks officials having to impose these hours long blackout. Now they're having to take these steps to put in emergency blackouts. So, you can understand how that's difficult for families. At least when it's scheduled you can sort of prepare yourself about when you shower, when you get your kids out of the door. Much harder when they are just simply cut.

And of course, everyone preparing themselves for this to get even more difficult in the winter, as you mentioned, it gets colder and colder, people need more and more heating. And we're seeing this pattern, of course, across the country yet again, more overnight strikes on the critical infrastructure of this country. In particular I'm going to point out the Zaporizhzhia nuclear power plant. It reported that it's been disconnected from Ukraine's power grid as of 11:00 p.m. last night. It's emergency generators had to be kicked back on.

It is a Russian occupied nuclear power plant. It's not the first time that this has happening, but we are again, talking about a nuclear power plant, at the front lines, getting shelled, disconnected from the power grid. it's absolutely concerning. When it's prepared you can plan. Much harder when they are cut. Everyone preparing for this to get even more difficult in the winter. As you mentioned, it gets colder and colder people need more and more heating. We've seen this across the country.

More overnight strikes on the critical infrastructure of this country. In particular, I'm going to point out the Zaporizhzhia power plant. It's been disconnected as of 11 p.m. last night. The emergency generators had to be kicked back on. It is a Russian occupied nuclear power plant. This is not the first time and it's getting shelled, disconnected from a power grid. It's absolutely concerning.

FOSTER: Yes, it's very frightening. Salma, thank you.

NOBILO: And Clare is here.

[04:40:00]

As Max was saying, so Clare, yesterday we were talking about Iran providing Russia with drones period now we're saying that North Korea --and according to U.S. intelligence report and CNN reporting, is supplying artillery to Russia. So, what's the impact of having this additional support?

CLARE SEBASTIAN, CNN CORRESPONDENT: so, the news is that the U.S. Security Council spokesman, John Kirby, has confirmed CNN reporting that while we knew over the summer that Russia was sort of planning to potentially buy artillery shells from North Korea. Now they believe North Korea is covertly supplying the artillery shells under cover of sort of shipments to North Africa and the Middle East. They don't know if they've arrived yet, they are monitoring the situation and they won't comment on the exact quantity.

But what this shows us in conjunction with what we know about Iran supplying drones and potentially even ballistic missiles going forward, is that Russia is now having to turns to these kinds of actors to resupply its military. It can't do it itself anymore to the extent that it would like to because of sanctions impacting its industrial sector. It also reveals crucially I think that it's not going to -- sort of it's willing to explore any avenues to keep this special military operation going. This is not a matter of a country that's looking for a path to peace.

NOBILO: Clare Sebastian for us in London and Salma Abdelaziz for us in Ukraine. Thank you.

The Houston Astros have tied up the World Series with the Phillies. And history was made in one of the most astonishing ways possible.

FOSTER: Keep watching.

(COMMERCIAL BREAK)

NOBILO: Whether it's from over fishing, pollution or climate change, the world's oceans and water habitats are under threat by human actions.

FOSTER: Across the globe, inspiring men and women though are fighting to prevent and even reverse the damage that could change our waterways actually forever. Today CNN is hosting our second annual "CALL TO EARTH DAY," focusing on those efforts. Vedika Sud is at the Silver Beach in Mumbai. Vedika, what's going on behind you?

[04:45:00]

VEDIKA SUD, CNN REPORTER: Good afternoon from Mumbai, India's financial capital. It's a very hot day here today It's about 2 p.m. local time. And right behind me, that hasn't deterred these dozens of volunteers, Max, from actually going ahead and clearing the mess from this beach. They do it for two hours every week and they've been doing this for over 7 years. Under the leadership of a man who is a lawyer by profession. This has been his project. It's been his passion for years. It's because of this man, Afroz Shah, and his team that you see the beach being as clean as it is today.

I mean, let's just go back to the picture that have shared with the team this from 2015. If you look at the image, that's what the beach looked like about 7 years back. Completely messed up, completely full of plastic. I spoke to Afroz this morning, he did mention that open defecation is still a problem here. That's something they're trying to resolve. Along with that it's also the effort to make a behavioral change in the people. To make them aware, to educate them of the perils of plastic waste at the beach. Here's what he had to say.

(BEGIN VIDEO CLIP) AFROZ SHAH, ENVIRONMENTALIST: There are a lot of people who take check and want to be clean or plastic pollution to be reduced or (INAUDIBLE) climate to implemented. But to my mind after working so long as a ground-level analyst, I tell you it has to be deliberate change.

(END VIDEO CLIP)

SUD: 65 million KGs of plastic is what they've recovered, guys, in the last seven years, believe it or not and the efforts continue at this beach. I used to live in Mumbai until about a decade ago. And this beach has never looked as clean as it is today. It's so heartening to come here. It's so heartening to see all of these people make a difference. And here's what they produce, tiles from what they recycle, the ways that they segregate from this beach. Interesting, isn't it -- back to you.

FOSTER: That's amazing and the transformation is about beaches, incredible. Vedika in Mumbai, thank you.

NOBILO: In South America Patagonia covers around half a million square miles of Argentina and Chile. And over the years fishing and tourism have started to take a toll on the regions shores. But some scientists are working hard to protect those precious waters.

(BEGIN VIDEOTAPE)

VRENI HAUSSERMANN, MARINE ZOOLOGIST: For me Patagonia is the most beautiful part of Chile. It's very remote, very wild and rugged coastline. Full of green forests, temperate rain forests, has lots of glaziers, rivers, lakes. And the coast is very steep.

The marine life came from deep waters but also from adjacent area so the diversity we find on shore is elevated compared to other coastlines. My name is Vreni Haussermann, I'm a scientist working at the University of San Sebastian and I'm studying the marine biodiversity of the Chile's Patagonia.

Starting in Patagonia we found many species that haven't been described before. The coastline is more than 100,000 kilometers which is twice around the world. There are only a handful of scientists working there so even if we studied all the main areas, there are still most parts that we don't know yet.

Patagonia was free of human impact for a long time. But in the 80s when aquaculture moved in it started to be impacted. Life in the shores has been reduced and abandoned. There are species we hardly don't find anymore.

By impacting an area where we know very little about, we always have the risk that we are damaging ecosystems and their equilibrium of the ecosystems is lost.

I hope that humanity understands the need to protect the planet. I hope humanity understands the need of protecting the oceans and our lives and the lives of all future generations depends on a healthy ocean and a healthy planet. (END VIDEOTAPE)

NOBILO: If you would like to share your thoughts about raising awareness on environmental issues, you had to our special page, CNN.com/CallToEarthDay. We'll be right back.

[04:50:00]

(COMMERCIAL BREAK)

NOBILO: You're looking at an incredible rescue here. Two Florida residents saved a woman's life after they spotted her clinging to a car which was partially submerged in a canal. Cristiano Piquet was flying his paraglider near Miami when he noticed the overturned car. He landed nearby while recording the whole thing on his body cam.

FOSTER: It's just incredible, isn't it. A resident heard what was happening, came to help and pulled the woman from the car with a rope -- as you can see. She was taken to a nearby hospital in a stable condition. We're happy to say. Police are trying to figure out exactly how that car got in the canal.

NOBILO: And two years of bitter civil war in Ethiopia appears to be coming to an end with Wednesday's surprise announcement of a cease- fire. Then they shook hands on the deal after just ten days of talks brokered by the African Union, far quicker than expected. The U.S. welcomed the cease-fire as an important step toward regional suitability. As CNN's Larry Madowo has been following this dramatic development for us from Nairobi. Larry, this did surprise observers not just in the fact that it happened but also how far this agreement went.

LARRY MADOWO, CNN CORRESPONDENT: Absolutely, because these two parties have been at war for two years and the agreement was signed almost exactly two years to the day since the conflict began in Tigray, in the north of Ethiopia.

Finally, the governments and the Tigray People's Liberation Front agreed to come together to a table and agreed to a permanent cessation of hostilities, disarmament of the elements that have been involved in this conflict, a restoration of services and hindered access for humanitarian supplies and restoration of services. Banking, communications all of these have been completely blockaded in most of Tigray for the past two years.

[04:55:00]

It's a significant monumental moment. A new dawn so to speak for Ethiopia. Considering that just about two weeks ago even these talks were in doubt. They were postponed indefinitely, it was not clear they were going to happen. But hearing from the government representative, from the TPLF representative, they were complementary of each other. They said they were now weary of fighting. That they thought that finally the people have deserved a chance at peace.

But the big question here, one of two questions, is the implementation. There's going to be a need for a lot of vigilance from the international community to make sure they don't go back to, as one person described it, their proclivity for shooting at each other.

And the other question is Eritrea, they are trying to come in to Tigray, and CNN has reported on this extensively -- and the TPLF has consistently called out the presence of Eritrean troops in coordination with Ethiopian troops and there were the peace talks. And it's not clear if they will agree to this permanent cessation of hostilities.

NOBILO: Larry Madowo in Nairobi, thank you

FOSTER: The Houston Astros won game 4 of the World Series on Wednesday making history along the way. Their pitcher threw a no hitter against the Philadelphia Phillies. Only the second no hitter in the World Series since 1956.

NOBILO: And the Astros scored 5 runs in the fifth inning. Enough to tie up the series at two wins apiece. The teams face off again tonight in game five.

And if you're feeling -- in the U.S. -- and you're feeling lucky. You might want to buy a Powerball ticket. The jackpot is now up to $1.5 billion after there was no winter again on Wednesday.

FOSTER: We keep giving that advice every day.

NOBILO: We do, yes.

FOSTER: This makes it the second largest jackpot in Powerball history with no winners after 39 consecutive drawings. The next drawing is on Saturday and if there's a single winner, they can choose to take a lump sum payment of $746 million. That could even hit a billion. Thanks for joining us here on CNN NEWSROOM. I'm Max Foster.

NOBILO: And I'm Bianca Nobilo. "EARLY START" with Christine Romans is next.

[05:00:00]