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A Job Well Done; Electricity a Main Factor in Ukraine's Aid Distribution; Duke and Duchess Release Their Second Documentary Series; Tornadoes Left a Mess in Southern U.S.; Morocco Lose to France Two-nil; Another Migrant Worker Died in Doha; Duke and Duchess of Sussex Felt Betrayed by Own Family; Federal Reserve Raise Another Interest Rate; China Play Wise in South Africa; COVID Cases Continue to Spike in China; No Information Yet on Kenny DeLand's Whereabouts. Aired 3-4a ET
Aired December 15, 2022 - 03:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[03:00:00]
(COMMERCIAL BREAK)
ROSEMARY CHURCH, CNN ANCHOR: Hello, and welcome to our viewers joining us from all around the world. I'm Rosemary Church.
Just ahead here on CNN Newsroom, in a pre-dawn attack on Ukraine's capital Kyiv, all 13 Iranian drones were intercepted and destroyed.
The final three hours of Harry and Meghan are up on Netflix, but will we hear anything new? Our Max Foster will be watching to bring us the headlines.
And parts of the south are starting to clean up after nearly 50 tornadoes ripped through the region. We will tell you where the powerful storm system is headed next.
UNKNOWN: Live from CNN center, this is CNN Newsroom with Rosemary Church.
CHURCH: And thank you for joining us. A Russian installed official claims Ukraine has carried out a large attack in the occupied city of Donetsk. He says 40 rockets were fired at civilians in the worst strike he's seen since pro-Russian separatist took control of the region in 2014. There have been no immediate reports of casualties and CNN cannot independently confirm these claims about the attack.
Meantime, Ukraine says its forces took out a swarm of drones over Kyiv on Wednesday before they did any damage to the capitol's energy infrastructure. Ukrainian President Volodymyr Zelenskyy praised his troops for their response to the attack.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): I want to thank our anti-aircraft forces and the air force for repelling another attack by Iranian drones this morning. In total, 13 drones were shot down. These are 13 saved infrastructure facilities. These are saved lives in one morning.
(END VIDEO CLIP)
CHURCH: CNN's Will Ripley reports now from Ukraine's capital on the aftermath of that attack.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN CORRESPONDENT: A terrifying way to wake up in Kyiv, the chilling buzz of another drone attack on the Ukrainian capital caught on camera. "The rumble was like from a moped. That was the sound it made," says Vetlana (Ph). "It fell behind the houses and then there was a strong roar, an explosion."
Some buildings left on fire, hit by remains of the destroyed Iranian made Shaheds as they fell. Some landed near a local soccer field.
Did you hear the explosion?
UNKNOWN: Yes, of course. We all wake up. There was one here first part, and the first -- second one part near the entrance on the training base and the third one near the forest.
RIPLEY: A few hours later, the consequences could have been much worse. And you have kids playing soccer now?
UNKNOWN: No, it's six o'clock before it happens now.
RIPLEY: But they would've been here had it happened later?
UNKNOWN: Yes, later, yes. Because we have a tournament here.
RIPLEY: Authorities say Russia launched the drones towards Kyiv on Wednesday, aiming them at the already battered power grid to sow fear and chaos, and potentially plunge millions into the dark and cold. This time, all the drones were shot down.
Ukraine's President Volodymyr Zelenskyy says the terrorists started this morning with 13 Shaheds. According to preliminary information, all 13 were shot down by Ukraine's air defense systems. Well done, he says. I'm proud.
Ukrainian defenses less successful in Kherson, authorities say multiple Russian rockets hit this administrative building in the heart of the southern Ukrainian city. Authorities say nobody was hurt. Inside, the damage, severe. Entire sections destroyed.
Ukraine says attacks like this and the one in Kyiv aimed at wearing down the Ukrainian people trying to break their spirits, reduce support for resistance against Russia. But here in Kyiv, people refuse to give in.
You are brave people.
UNKNOWN: Yes, our children --
(CROSSTALK)
RIPLEY: I can definitely see that.
UNKNOWN: -- parents, yes, woman, old men. It's -- it doesn't matter. They're so brave.
RIPLEY: Bravery on and off the battlefield.
Will Ripley, CNN, Kyiv.
(END VIDEO CLIP)
CHURCH: And CNN's Nina dos Santos joins us now live from London. Good morning to you, Nina. Let's talk about the Patriot missile defense system that the U.S. will send to Ukraine.
[03:05:00]
We know it's going to take time for Ukrainian soldiers to learn how to use this, but already Russia is making threats. What is the latest on their response?
NINA DOS SANTOS, CNN CORRESPONDENT: Well, the latest, Rosemary, is that Russia according to Dmitry Peskov, the official spokesman for the Kremlin yesterday afternoon on a conference call with reporters, said that these weapons systems would be a very legitimate target from Russia's point of view, if they were dispatched to Ukrainian territory.
I have to point out, though, that although that sounds quite alarming, this is consistent with the kind of messaging that we've had from the Kremlin throughout the course of the war in Ukraine when NATO or U.S. made weaponry has made its way across the border into Ukraine. Russia has repeatedly said that that is viewed by the Kremlin as a legitimate target for them to block onto.
Now, in another sign that Russia is potentially saber rattling again, especially with regards to the nuclear threat issue that has loomed large over the course of this long and painful war in Ukraine. We also saw a video emerge online of the Russian military starting to ready a Yars missile system that is capable of carrying intercontinental ballistic missiles with nuclear warheads that could reach western capitals like, for instance, the United Kingdom and the U.S.
However, military experts have caution not to read too much into this potentially, because this is a crucial time this week when Russia actually has an annual display of its missile capability. And so, this particular system was probably being readied and is being displayed as a result of that crucial military exercise that is taking place in Russia later on in the week.
But this obviously will be in the forefront of E.U. leaders' minds as they gather in Brussels for another E.U. summit that is taking place over there. Obviously, the issue of the war in Ukraine and the effects of it, for instance, on E.U. territory, not just from a security point of view, but when it comes to the rising cost of energy. All of that will probably be up for discussion in Brussels as well. Keeping money of those E.U. leaders, very much on their toes. Because the concern here obviously is with these patriot missile systems, they will have to be the troops, Ukrainian troops will have to be -- to be trained probably in the Ramstein Air Base in Germany by the United States before these systems make their way over towards Ukraine.
And obviously, the concern here for a potential escalation looms large, not just in E.U. leader's minds, but also for NATO as well. Rosemary?
CHURCH: All right, Nina dos Santos joining us live from London, many thanks.
A state of emergency has been declared in Louisiana as extreme weather cuts a path of destruction and misery across parts of the United States. The south has been hit hard with around 50 tornadoes reported over the past two days and thousands of homes and businesses, in the dark right now.
Authorities in Louisiana say at least three people died, and officials all along the Gulf Coast say severe weather has collapsed homes, flipped over cars, and downed power lines.
Here is the mayor of Gretna, Louisiana.
(BEGIN VIDEO CLIP)
BELINDA CONSTANT, MAYOR, GRETNA, LOUISIANA: We've seen catastrophic destruction from both ends of the city, starting from the municipality right next to us, Jefferson Parish all the way over to Orleans through the entire, one strip through the entire city.
(END VIDEO CLIP)
CHURCH: And for more on all this, I'm joined by CNN meteorologist, Britley Ritz. Britley, Louisiana particularly, I mean, here it's been battered by this powerful storm. What are you seeing ahead now in the forecast?
BRITLEY RITZ, CNN METEOROLOGIST: Absolutely. You know, nearly 50 tornadoes touched down across Texas back into the lower Mississippi Valley. We are still dealing with the threat of tornadoes throughout the rest of the overnight and early morning hours as the line continues to trek farther off to the east.
Now, Florida next in line, you see this area highlighted in orange where we have a stronger thunderstorm capable of producing hail, as well as strong damaging winds in excess of 60 miles an hour. With that opportunity for a small spin up as well.
A tornado watch now issued for parts of Florida, parts of Alabama back into southwest Georgia until later on to this morning where we have that potential. Again, you see that area highlighted in orange. That's where we have the possibility of damaging winds and hail, and then that isolated tornado threat as well that will continue on as it continues to press off to the east.
Now, by Thursday, later into the evening, most of the rain will be on the back end of this, but we're still dealing with the threat of stronger storms early on. So, you're seeing that are highlighted in yellow from Charleston to Tampa, where we have that isolated tornado threat. Not as much of a risk today as it was on Wednesday, but the opportunity is still there.
[03:10:03]
Damaging winds in large hail going to be one of our bigger concerns as well as the threat for flooding. Our grounds are saturated and we have an additional one to two inches of rain expected what we're highlighted in yellow from Knoxville to mobile. So, we have to keep that in mind too as we're going out and about.
In fact, lake Charles, Louisiana actually picked up a daily record on Wednesday of nearly two and a half inches of rain. And on the back end of the system where that low begins to wrap back around, we have winter storm warnings up into New England and ice storm warnings for parts of the Allegheny in central Appalachian Mountains where we could pick up a half an inch of ice, if not more.
If that happens over the next 48 hours, then we're dealing with crippling conditions where we wind up with impossible travel and widespread power outages. Now, in New England, on the other hand, dealing with snowfall and we could pick up to nearly two feet of snow in the higher elevations. Rosemary?
CHURCH: All right, Britley Ritz, thank you so much. I appreciate it.
Well, just minutes ago, Netflix released the final three episodes of the Harry and Meghan documentary series. The Duke and Duchess of Sussex shared the early days of their relationship leading up to the wedding in the first three episodes. But this new batch explores the struggles they've endured since then for better or for worse.
(BEGIN VIDEO CLIP)
MEGHAN, DUCHESS OF SUSSEX: You would just see it play out like a story about someone in the family would pop up for a minute and they'd go, we got to make that go. But there's real estate on a web site homepage. There is real estate there on a newspaper front cover, and something has to be filled in there about someone royal.
(END VIDEO CLIP)
CHURCH: And CNN royal correspondent Max Foster joins me now from London. Good to see you, Max. So, it's too early, of course, for you to have viewed these three episodes of Harry and Meghan's documentary series, but the trailer certainly hints at some bombshells ahead. What can we expect?
MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, it does seem to suggest that the first three parts that we talked about last week, Rosemary, were focused on the media and how the media were out to get Meghan in particular, but also Harry and all of the race accusations around that as well.
The trailer suggests that this next three parts will be about the palace and this core accusation that the palace was briefing against Meghan and Harry in order to protect other members of the royal family with are presuming, the accusation there is Kate and William, the Prince and Princess of Wales, or the Duke and Duchess of Cambridge as they were then.
But we need specifics about when this briefing took place and who by, I have to say I was never briefed in that way in the time that they were there in as working royals, so we need to know who it was.
And there's a big write up today in the Daily Mail, for example, by their royal editor who's very well respected, one of the leading tabloid royal editors, saying that she was never briefed either on negative stories about Meghan and Harry in order to push other members of the royal family off the front pages. But these are things that the Sussex has cared deeply about and, these are the reasons they say they left the royal family.
So, we're really looking for specifics about the what and the who at the core of their complaint.
CHURCH: And certainly, in the first part there is this sense that they dump all the media in one pack along with the paparazzi which -- which really isn't the true story here, is it?
FOSTER: Well, you know, there were negative stories, no doubt. And I think there was certainly some sexism there in the coverage. And I think the tabloid editors would admit that there was certainly some racism in the coverage as well. And that's been widely reported on. And I think some snobbery and some xenophobia, perhaps, that's been reported on quite widely.
Their, you know, issue is that the palace didn't protect them. We heard about that in the first parts of the series, but now this is taking it to a new level. If they're saying the palace was actively going out and briefing correspondents against Meghan and Harry, because they were less important in the hierarchy.
And we heard Harry briefly mentioned the hierarchy. I mean, it is a hierarchy and there are more senior members in the family than Meghan and Harry were. So, we're waiting to see exactly what those specific allegations are. They've got their lawyer on the program. She's very well respected, so waiting to hear what evidence she's seen as she claims she's seen that the palace was briefing against the couple.
CHURCH: All right, Max, I will let you go off and watch these three episodes and we will talk to you again very soon. Max Foster joining us live from London. I appreciate it.
Well, from teammates to rivals. Two of the world's biggest football stars are getting ready for a faithful showdown in the World Cup final. Kilian Mbappe and Lionel Messi both looking to make history.
And dozens of African leaders were wined and dined at the Biden White House last night as the administration hosts its first African summit since President Obama.
[03:15:04]
A live report from Johannesburg is coming up later this hour.
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CHURCH: Returning now to our top story, the war in Ukraine. Martin Griffiths is the U.N.'s humanitarian relief chief, and he joins me now from Kyiv as he wraps up a visit to observe the conditions in Ukraine. Thank you, sir, for joining us.
MARTIN GRIFFITHS, U.N. UNDER-SECRETARY-GENERAL FOR HUMANITARIAN AFFAIRS AND EMERGENCY RELIEF COORDINATOR: Pleasure. Thank you very much.
CHURCH: Now at the end of your four-day tour of Ukraine, what's your overall assessment of the situation on the ground there? And of course, the humanitarian needs of civilians who are constantly coming under attack from Russian airstrikes as they try to deal with the many challenges associated with this brutal war.
GRIFFITHS: Well, my -- I was lucky enough, if that's the right word to visit Mykolaiv and Kherson a couple of days back and spent the day looking exactly at how the humanitarian aid of the international agencies and national NGOs and frontline organizations are getting to the people that need it.
And I was really impressed by the efficiency of the local authorities and the openness that they have and the good partnership. So that's a good thing. But, but, and it's a huge but, the -- you go to Kherson, it's still very, very insecure. We had shelling coming close to us when we were in a school where UNICEF had a child-friendly center, there's no reason for that being shelled.
And in a sense, more pervasive than that was the problem of electricity. And it just struck me so forcefully that electricity is the gateway to kind of everything else. You don't get heat without it. You don't get transport without it. You don't get light or medical care without it, and it's cold these days.
So, getting electricity to work and is rely -- and to be reliable is essential for the humanitarian operation and for the welfare of the people. And you know, it's obviously a huge priority. I've just had a meeting with the prime minister here, and he repeats that.
So, electricity, hugely important. Demining, by the way, half a million hectares of agricultural land in Kherson alone needs demining. I gather Ukraine has got more mines than anywhere else in the world. More mine polluted. Huge priority.
But what is true and what is really important is the fortitude of the people, even being shelled staying at their homes surviving and hoping, for God's sake, for a better future.
[03:19:52] CHURCH: Yes. I mean indeed certainly, you talk about the Ukrainian people, they have been extraordinary, haven't they? They've stunned the world. I think most definitely have made -- amazed and shocked President Putin as his watch, thinking that this was going to be over in days.
And here we are nearly coming a year later very soon just a couple of months away from that. So, let's talk about this Russia relentlessly targeting Ukrainian energy infrastructure with missiles and drones since October.
You talked there about what people are having to deal with now as winter approaches. It's going to be absolutely miserable, but there is some support coming in the way of generators from some nations. Is that correct?
GRIFFITHS: It is correct. And you know, the good news for the people, the brave people of Ukraine as you say, is that there's a huge welling of international support for them in their time of great tragedy. And the humanitarian agencies here have delivered hundreds of generators, which are absolutely essential up to the front lines.
There was a Paris conference, as you know, a couple of days ago, which pledged over a billion dollars, I think more than billion dollars focused on energy infrastructure. The worry is for the governor of a place like Kherson is who is repairing his electricity lines coming into the -- into the city is whether they'll be damaged again.
So, the uncertainty of war is something which is so pervasive, often not quite understood by those of us who are not in the middle of it. But yes, a generous world and thank God, because the needs are very, very large.
CHURCH: Yes. And hopefully that is sustainable. And we have been reporting on those 13 Iranian drones that were shot down by Ukrainian air defenses Wednesday morning. And now of course we know the United States plans to send a Patriot missile defense system to Ukraine.
How will that change the trajectory of this war and better protect civilians who have been so brutally targeted as well as their infrastructure because it will be eventually protected better, won't it, with this system?
GRIFFITHS: Well, I hope so. We were all woken up. I was in Kyiv yesterday, as you know, and we were all woken up at past five in the morning with the air raid sirens going off and then there's explosions. And as you say that I think all the drones were shot down by the Ukrainian air defense, which was good news for those people living in Kyiv.
Again, and it goes back to my earlier point, you don't know what's going to happen the next morning. The uncertainty of life. And I have many colleagues, U.N. colleagues here who couldn't come to work yesterday because their children couldn't go to school because the schools were closed, because the air aid was going on. All of this has such an extraordinary impact on daily life that it wears people down. And what's impressive here, I think, is that despite that there's a generosity of spirit among the people that we work with and we support and we help, which is quite, quite remarkable, as you say, almost getting closer to a year of war, a huge war, an industrial scale war. People suffering from the small things to the large things. There's no question.
CHURCH: It is just unbelievable, as you say, we just don't know from day to day. And of course, to rebuild Ukraine we're talking about hundreds of millions of dollars and this war is not anywhere near an end at this juncture.
Martin Griffiths, thank you so much for joining us. We appreciate it.
GRIFFITHS: Thank you very much, indeed. Thank you.
CHURCH: There will be no fairytale ending for Morocco at this year's World Cup. France has soared into the final after two-nil victory, ending the dreams of millions across Africa and the Arab world. Morocco will now play Croatia for third, and on Sunday, the world will be watching the big showdown between France and Argentina.
CNN's Don Riddell is in Doha with the details.
(BEGIN VIDEOTAPE)
DON RIDDELL, CNN SPORTS ANCHOR: The world Champions France are just 90 minutes away from standing on top of the world again. No men's team has won back-to-back world titles since Brazil in 1962. But their progress to the final match means heartbreak from Morocco whose historic run is now over.
France struck early in the semifinal match at al-Bayt stadium. A fifth minute goal from Theo Hernandez was only the second time that Morocco had conceded in the tournament. France looked strong, but Morocco kept them on their toes and Jawad El Yamiq almost equalized with a spectacular overhead kick. The French needed their goalie, Hugo Lloris and the post to keep it out.
But the French effectively put the game to bed with a second goal 11 minutes from time when substitute Randal Kolo Muani found the back of the net with his first touch just seconds after coming off the bench.
[03:25:02]
UNKNOWN: Back-to-back. Like what else can we say? And you like, the team, like, people came off the bench and did everything that they did like, this team is so good. This team is so deep and players were so talented. And I'm proud to be French.
UNKNOWN: Well, a bit disappointed. We're so proud of the team. They played very well of a great journey. So yes, quite proud.
RIDDELL: So, a really disappointing night for Morocco. But they've won so many new admirers for the way they've played during this tournament, making history for both Africa and the Arab world.
All eyes now looking ahead to Sunday in the final, which pits France against Argentina. Kilian Mbappe against this PSG club teammate Lionel Messi. It has all the makings of a classic.
Back to you.
(END VIDEOTAPE)
CHURCH: Dozens of civil society groups from Nepal are calling on FIFA to stop dismissing compensation claims from migrant workers who they say have suffered abuses in Qatar. Hundreds of thousands of workers from Nepal have played a huge part in building the infrastructure Qatar needed to host the World Cup.
Meanwhile, FIFA says it's deeply saddened over the latest death of a migrant worker during the tournament. He was a Kenyan security guard who died while on duty last weekend.
CNN's Larry Madowo spoke to his sister who is still looking for answers.
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LARRY MADOWO, CNN CORRESPONDENT: John Njue Kibue's family wants to know exactly how he died. They were told on Saturday that he had fallen from the eighth floor of Lusail Stadium, but they feel they're not getting all the information. They tell CNN they've not been allowed to see any pictures or video footage of what happened, and that's all.
He came to Qatar in November last year. He wanted a better life for himself to support his family back in Kenya, and the lack of information is adding to this family's anguish.
Listen to what his sister told CNN.
ANN WANJIRU KIBUE, JOHN NJUE KIBUE'S SISTER (through translator): I remember him as a good person. I remember him as a hard work -- as a hard working. He said he got some challenges, but he still worked for the work. He still worked. Because in every work you get some challenges, but he'll just -- he just work hard. All he wanted was to just work hard for his family.
MADOWO: He is a second migrant worker to die since the tournament began in Qatar. Qatar has been widely criticized for the treatment of migrant workers in the decades since they got the rights to operate to run the World Cup. And only recently did the World Cup chief of Qatar acknowledge that between 400 500 migrant workers could have died in projects connected to the tournament.
This will add to the questions around the conditions that migrant workers even during the World Cup are operating in here in the country.
Larry Madowo, CNN, Doha. (END VIDEOTAPE)
CHURCH: And still to come, the Duke and Duchess of Sussex share what life has been like since stepping away from royal duties. We'll have the latest revelations from their new documentary series after the break.
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[03:30:00]
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ROSEMARY CHURCH, CNN ANCHOR: Welcome back, everyone. Well, we are learning more about the challenges faced by the Duke and Duchess of Sussex, while deciding to give up their senior royal duties. It's all part of the record-breaking Netflix documentary which premiered its final three episodes about half an hour ago. Take a look.
(BEGIN VIDEO CLIP)
JENNY AFIA, PARTNER, SCHILLINGS LAW FIRM: There was a real kind of war against Meghan, and I've certainly seen evidence that there was negative briefing from the palace against Harry and Meghan to suit other people's agendas.
(END VIDEO CLIP)
CHURCH: And CNN's Anna Stewart joins me now live from London. Good to see you, Anna. So, you have been able to watch some of these new episodes that just dropped this hour. What have you learned so far?
ANNA STEWART, CNN REPORTER: Right. So, I'm about 20 minutes through the first episode, Rosemary, so I've got some way to go. But listen, so far, I've not had the big bombshells that were maybe teased in some of those trailers that we saw. So far in the first episode it does kick off with Meghan actually likening herself to an organism that disrupted the ecosystem of the royal family.
But quite quickly following this, you start right back on their wedding day, you hear that Meghan felt bizarrely calm on the day despite all the crowds. You hear from a guest, Clare Waight Keller who designed her wedding dress. And really this is starting this volume two, the next three episodes on quite a strong footing, quite a positive note I have to say.
You get video for instance, of Meghan at Nottingham College in Kensington Palace, her and Harry joke about how small it was, how low the ceilings were, how Oprah, apparently came for tea and actually remarked no one would ever believe it, sort of looking at her how small their cottage was within Kensington Palace.
And then it moves on actually to Meghan's first official engagement with her Majesty the Queen in Cheshire. This I think was in 2017. I actually remember covering this story, maybe it was 2018. I remember being there and I remember it being really interesting. They traveled up together on the royal train, and Meghan talks about her relationship with her majesty and says, I had a really great time with her.
And she's asked, what is it that you talk about with the Queen of England, you know, over breakfast on a royal train? And she says, I treated her as my husband's grandma and knowing that, of course there has to be a different sense of priority outside in public, when you're having breakfast, you get to talk.
And she talks about the nice moments between their engagements when the queen who had a blanket on her knees and the car would put it over Meghan's, and she says, I was so grateful because now I had a grandma figure, her grandmother had died and she'd been very close to her.
So, so far, so good, Rosemary. But we are waiting for some of those bombshells that were teased, and I think we will be getting those before these three episodes are up.
CHURCH: Yes. And, yes, we. And but before that I do want to ask you because that first installment of this documentary received the highest viewing time of any documentary to debut on Netflix in its premier week. So, it has its fans, it has to be said, but critics are attacking Harry and Meghan. They're claiming that they're cashing in on the royal family, that this is all about profit.
What were is being said about this? And do the Sussex's plan to respond to their critics.
STEWART: Well, in some senses they actually have. We did have a response, I think from the Sussex team that said, listen to those critics that say Meghan and Harry clearly don't want privacy because look at their lives being spilled out on Netflix and all the private photos there.
The argument there was they didn't leave the royal family due to privacy concerns and that they're very happy sharing their lives as long as the narrative, I think is true to what they would like to share. I think there's also criticism as to what is true and what is not.
And I think what people will want to see today, and as you say, people are going to watch this, this was the most watched series, even more than the Crown on the first day. I think people will want to see evidence at this stage.
So, if you're going to throw allegations against the royal family in the media for purposefully lying or planting negative stories, I think at this stage to really convince people they'll want to see some of that proof, some evidence. So that is what I'm hoping we will see in the next three episodes. But I will keep watching, Rosemary, and keep you posted.
CHURCH: All right, we'll send you back. Go watch some more and we'll see if the bombshells are in the next few minutes, and certainly when we chat again. Anna Stewart joining us live from London. Many thanks. And still to come this hour on CNN Newsroom, Americans can expect higher credit card bills and loan payments with interest rates going up yet again.
[03:35:00]
(COMMERCIAL BREAK)
CHURCH: The Bank of England is expected to raise interest rates for the ninth straight time today. Policy makers are trying to fight off a recession and they got some welcome news on Wednesday as inflation eased slightly to 10.7 percent in November.
Most economists expect a half a percent interest rate increase. The Central Bank voted in early November to hike rates by three quarters of a percent. The biggest increase in more than 30 years.
The U.S. Federal Reserve has raised interest rates by half a point in its latest effort to bring inflation under control. The new range is between four and a quarter and four and a half percent. The hike is lower than their four previous increases, which reflects the fact that inflation is cooling.
So, let's see how financial markets are reacting right now. We're looking at Asian markets here. Hang Seng is down 1.55 percent and Japan down 0.37. So of course, no surprise that this is reaction to the U.S. And markets in the U.S. finished low across the board. Wednesday trading is just getting underway in Europe. And of course, all the arrows at this point are in negative territory.
But for more on this latest interest rate hike, I'm joined now by Torsten Slok, chief Economist at Apollo Global Management. Thank you so much for being with us.
TORSTEN SLOK, CHIEF ECONOMIST, APOLLO GLOBAL MANAGEMENT: Thank you.
CHURCH: So, the Fed raised interest rates again on Wednesday, this time by half a point, less than previous rate hikes. But Fed Chairman Jerome Powell warned of more hikes to come to keep inflation from becoming entrenched he said. Was that the right strategy given we are seeing inflation slow now down to 7.1 percent in America?
SLOK: Yes. The problem for the Fed is that the Fed's inflation is that inflation should be 2 percent. So, with inflation today a little bit more than 7 percent, they're still quite a long way before the Fed is back at their target. So that was why J. Powell, he was saying, we need to raise rates now, but we also need to high rates a few more times.
In fact, what they said at the FOMC was that we will have 75 basis points of more increases in 2023. So that means that we'll probably get another 50 basis points here at the meeting in February, and then another 25 at the meeting in March before the Fed pauses. But that does mean that we do need some more rate hikes to get inflation all the way back to 2 percent. CHURCH: Yes. And of course, this is the seventh interest rate hike
this year. Let's talk about how many more you think will be required to get inflation down to what they consider acceptable. That 2 percent level.
[03:39:57]
SLOK: Yes. The challenge with that is that the, they are saying that they need a few more hikes before they're there, but the problem is that inflation could be more sticky, and that could mean that the Fed might have to do more hikes to get inflation all the way back to 2 percent.
And this becomes a function of why inflation went up. Did inflation go up because of demand in the economy, because of stimulus checks, high unemployment benefits, childcare tax credits, PPP loans? Or did inflation go up because of supply chain problems?
In other words, if it was just supply chain problem, then we just need time to resolve the reasons for why inflation is so high. But if we did see inflation grow up because of demand, then we need demand destruction.
So, there's a very important debate in financial markets about why is it that inflation actually has gone up to these very high levels. And because we don't know that and the Fed doesn't know that, and financial markets don't really know that at this point, we do need some more time for inflation to begin to come down.
And as we get into 2023, we'll have a little bit better idea about how quickly inflation will come back to 2 percent. But the bottom line is to your question, that we are not quite there. There's still too much uncertainty because the distance from the level of 7 percent today in inflation is just simply too far away from the Fed's 2 percent target.
CHURCH: Right. Now there's also the concern of triggering a recession when you overplay your hand here. Is this the only way to get inflation down? The Fed chairman says this is the best we can do. Do you agree with that?
SLOK: Yes, I do agree because the challenge for the Fed is that, we still don't know, and the Fed doesn't know, and financial markets don't know if we need a recession to get inflation back to 2 percent. Because a recession would be, very significant slowing in the economy. That would therefore of course, mean that there would be downward pressure on inflation if we were to enter a recession.
But there is also a scenario where we just get a soft landing. And if we get a soft landing, we may not get inflation all the way back to 2 percent. So, this uncertainty about whether a recession is coming or not still is very pronounced. And J. Powell very clearly said that also at the press conference, that there is still a risk that we could get a recession here in 2023 because we do need to get inflation all the way back to the Fed's 2 percent. CHURCH: Right, of course. That has a lot of people on edge. What is
your advice to viewers trying to get through the holidays with high inflation and these hiked up interest?
SLOK: Yes, the problem is that inflation, as we all know, is still too high and it is going to take time to solve that problem. Inflation started going up now almost two years ago, so we've been through a very long period of very elevated inflation, and the risk is that we still need a few more quarters before we get there.
But what the Fed told us very clearly today is that they are very committed and they feel very strongly that they can and that they should do everything in their power to get inflation down again. So, I do think that initially the Fed said this was temporary. The problem is just that so far, it's been almost two years of very elevated level of inflation, but eventually inflation will come down again. But we just need some more patience before this problem is solved.
CHURCH: Torsten Slok, thank you so much for talking with us. I appreciate it.
SLOK: Thank you.
CHURCH: Well, U.S. President Joe Biden says the United States is all in on Africa's future as he prepares to wrap up the three-day U.S.- Africa Leaders' Summit later today.
On Wednesday night, those leaders attended a gala White House dinner with entertainment by legendary singer Gladys Knight. The U.S. hasn't made this kind of wholesale outreach to Africa since the Obama administration. Since then, China's influence in that part of the world has grown significantly.
In recent years, Beijing has invested billions of dollars in Africa and it shows one notable beneficiary has been the tiny country of Lesotho.
CNN's David McKenzie met with the new prime minister who said his poor country needs all the international help it can get.
(BEGIN VIDEOTAPE)
DAVID MCKENZIE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Lesotho's brand-new prime minister knows how to make an entrance. A millionaire diamond magnate, Sam Matekane entered politics just six months before the election. Now he's here to celebrate his win.
And meet us at his mountainside mansion. Good afternoon. How are you, Prime Minister?
SAM MATEKANE, LESOTHO PRIME MINISTER: Fine. How are you doing?
MCKENZIE: Very nice.
MATEKANE: Thank you very much. Thank you. Our country was gone. This is reality. Lesotho was gone because it cannot do anything for itself. You know, with the debt that we have, with many other things that were happening, we were not happy, because we can see this is now the end of Lesotho.
[03:44:57]
MCKENZIE: This tiny mountain kingdom entirely surrounded by South Africa has struggled for years with external debt, poverty, and unemployment. Past leaders often turning to one country for help. Lesotho's parliament, the state library, the convention center, are all built by the Chinese, even their state house. A gift from the People's Republic.
Were those smart deals to make?
MATEKANE: Well, what happened in the past is the past. I'm focusing in the future now because the debt is there.
MARIA BREWER, U.S. AMBASSADOR TO LESOTHO: I will often caution my African partners that if something sounds too good to be true, it probably is.
MCKENZIE: In a new era of great power competition, the U.S. government has recently taken a far more assertive line on China in Africa.
BREWER: We want this trade investment to be on an even playing field, and that's something that is, again, is very important to us.
MCKENZIE: What do you mean by that specifically?
BREWER: That laws are fairly enacted, that development opportunities are open.
MCKENZIE: That would indicate that China's investment has been opaque in your mind.
BREWER: I think that we are always looking for more transparency.
MCKENZIE: Unlike China's no strings attached, the policy the U.S. explicitly ties trade deals like the Africa Growth and Opportunity Act to measures like democracy and freedom. AGOA allows companies like precious garments in Maseru to export these Greg Norman golf shirts quota and tariff free, and employ thousands of mostly female workers like Metopia Masekane (Ph) who makes just under $150 a month.
"It's not enough to survive," she says, "but it still makes a difference and it's better than sitting at home." In a country with so few opportunities, even these conditions and this work can provide a lifeline for this woman, but this month China announced it'll allow tariff free imports from Lesotho and a host of the world's poorest countries.
And China recently forgave some of Lesotho's debt. It's donating a brand-new hospital in Maseru, likely weary of its reputation for trapping countries in debt.
If you look at the overarching trade, the Chinese have outstripped the U.S. significantly in Africa. So, can you compete at this point?
BREWER: We are what people aspire to be. America is what people aspire to become more and more alike. We're not a perfect country. We don't claim to be, but our model of development, our sense of individual freedom, those are things that I think people here on the continent still very much value and want to emulate.
MATEKANE: Competition will always be there whether we like it or not, it doesn't matter who is in competition with who, but it'll always be there.
MCKENZIE: If you got the same offer from the U.S. or China, which one would you take?
MATEKANE: I'll take both.
(END VIDEOTAPE)
MCKENZIE: A savvy politician there and across the continent, not just in Lesotho this is playing out. And you see this meeting with President Biden and more than 40 leaders of African nations. It looks like a reset of the viewpoint of the U.S. towards Africa, a strategic view -- reset.
Rosemary, put the question to the Chinese about this accusation of placing countries in a debt trap. The ministry of foreign affairs gave a pretty robust answer, saying that the talk of economic coercion and debt trap is, quote, "complete lies and frame ups."
So, there's certainly a level of sensitivity from the Chinese. They are still accused in many countries of placing governments into these difficult scenarios, but it takes two to tango. So, you have to ask the question of why those governments and those leaders got those deals in the first place.
The proof will be whether these investments announced by President Biden will be sustained and the U.S. can really be seen as an economic partner to countries on the continent. Rosemary?
CHURCH: All right, David McKenzie, many thanks.
Surging COVID cases in China have turned parts of the capital into a ghost town even as strict COVID measures have been mostly lifted. The government says it's no longer trying to track every case, but hospitals and clinics are seeing waves of new patients.
CNN's Selina Wang has details.
SELINA WANG, CNN CORRESPONDENT: COVID Lockdowns are finally over in China. But the irony is that here in Beijing, it still feels like we're stuck in one. Streets are empty, many stores are closed. Businesses are struggling to stay open because so many people have COVID. It's spreading extremely fast here in Beijing, and authorities say it's spreading rapidly across the country, but we don't know just how fast.
[03:49:54]
Authorities said they've given up on counting all cases since there's no way to gauge the number of infections now with people avoiding official tests and staying at home.
Here in Beijing the number of patients going to fever clinics jumped 16 times this Sunday compared to a week before. Authorities also said the number of calls to the emergency hotline have jumped six times. So, here in China there isn't a strong primary care system, so it's common to rush to the hospital even for minor illnesses. So, it's no surprise we're already seeing long lines forming outside of hospitals.
Authorities are now scrambling to increase the number of fever clinics and ICU wards, pledging as well to boost the lagging vaccination rate for the elderly population.
The fear from experts I speak to is not how this plays out in Beijing, but the potential devastation that could happen when COVID hits the rural areas with weak medical infrastructure.
Take a listen to what Xi Chen, an associate professor at the Yale School of Public Health had to say.
(BEGIN VIDEO CLIP)
XI CHEN, ASSOCIATE PROFESSOR, YALE SCHOOL OF PUBLIC HEALTH: China has around like 2,800 counties. Many counties do not have any ICU beds. And even they have beds, but they do not have medical doctors to serve.
(END VIDEO CLIP)
WANG: And now people across China are left to fend for themselves. People are rushing to stock up on fever and cold medicine. But interestingly, canned peaches are also flying off the shelves after rumor circulated that canned peaches can treat COVID.
In videos that have gone viral on social media canned peach factories are talking about how they're working overtime to meet demand. One factory said orders have jumped by tenfold. Searches for canned peaches have searched more than 2,700 percent on China's search engine Baidu in the past week. It has gotten to the point where state media is now publishing articles stating that the food has no medicinal effect or ability to cure COVID.
I spoke to a health expert who said this whole canned peach craze reflects the lack of communication between health authorities and the public, and it shows just how unprepared people feel that they're willing to follow the hype of canned peaches as a home remedy.
Selina Wang, CNN, Beijing.
CHURCH: Questions are growing about what happened to a U.S. college student who's been missing in France for more than two weeks.
Next, CNN visits the city where Kenny DeLand, Jr. was studying and talks to people who knew him. We'll have that in just a moment.
(COMMERCIAL BREAK)
CHURCH: Family members are increasingly worried about the fate of U.S. college student Kenny DeLand, Jr. who's gone missing in France. His father spoke earlier with CNN's Anderson Cooper.
(BEGIN VIDEO CLIP)
KENNETH DELAND, FATHER OF MISSING U.S. STUDENT: I talked to the FBI today. And I asked the FBI agent, you know, is there, do you feel like there's any progress? What's the status? And I don't get anywhere. And it just feels like the wind has gone out of the sail as far as what's being done to find my son. You know, the more time that goes by, the more worried we become.
(END VIDEO CLIP)
CHURCH: And his father is disputing a French prosecutor's claim that DeLand likely left on his own.
CNN's Melissa Bell spoke exclusively with the mother of the host family caring for DeLand in the city of Grenoble.
(BEGIN VIDEO CLIP)
[03:54:55]
MELISSA BELL, CNN CORRESPONDENT: Social media posts give little away, just images of a young American enjoying his exchange program in France. But Kenny DeLand, Jr. vanished 15 days ago without a trace after leaving the home of the host mother he was staying with.
She explains that she's only spoken once to Kenny's mother, never to his father, but agrees to speak exclusively to CNN without the camera. What the host's mother told us was that of all the exchange students she'd had at her home, Kenny DeLand was the one that seemed to be having the most trouble fitting in and settling down to life here in Grenoble.
She also said that, of course, since he's disappeared, she'd been inundating him with messages to which he hadn't responded. And she added that she had been reassured by that sighting of him about an hour south of here in that sports shop because she said it confirmed the possibility and her hope, that in fact, he'd gone and cut off communications voluntarily.
It was taken on December 3rd. Kenny DeLand spent just over $8 before vanishing altogether, according to his family, leaving behind only Facebook pictures of his life in France from Paris to the University of Grenoble Alps.
The last time Kenny DeLand turned up for lessons here at the university he was studying at was November 28. By the 29th when he failed to turn up, a missing person's report was filed and an emerged that he had left his host family that morning taking a packed lunch, a change of clothes, his wallet and his phone. Kenny DeLand hasn't been heard from since.
We show Kenny's picture around the campus in the hope that someone may recognize him. When we find Kenny's friends, they prefer not to speak on camera, but tell us that Kenny had friends that were exchange students and some that were local. We care about him and we want him to come back safely.
Statements that contradict what French authorities have said that Kenny struggle to make friends.
DELAND: What I'm telling you is he makes friends and he's easy to talk to like me. If you don't know my son, then it's tough for you to make some statement, some bold statement.
BELL: One of the things Kenny's friends told us is that he may have been stressed about the upcoming exams. Is that something that you recognize?
DELAND: He's in a foreign country. He's pretty upbeat kid. You know what I mean? So, it's 's possible. Sure. He was anxious. He was -- he wanted to do good. He wanted to prove that he could get good grades even on the trip of a lifetime.
BELL: Kenny DeLand, Jr. chronicled his journey to France in August. His father still hopes he'll be able to pick him up as planned on Saturday.
Melissa Bell, CNN, Grenoble.
(END VIDEO CLIP)
CHURCH: And thanks for your company this hour. I'm Rosemary Church. I'll be back with more CNN Newsroom after a quick break. Do stay with us.
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