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U.S. Markets Tumble on Fed's Bleak Economic Forecast; UK, EU Regulators Make 50-Basis Point Interest Rate Hike; Largest UK Nurses' Union Strikes Over Pay, Declining Standards; Families Holding Memorial for Halloween Crush Victims in Seoul; Second Batch of "Harry and Meghan" Episodes Alleges Jealousy, Lies, Screaming. Aired 4:30-5a ET
Aired December 16, 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]
KIM BRUNHUBER, CNN ANCHOR: Welcome back to CNN NEWSROOM. I'm Kim Brunhuber. If you are just joining us, let me bring you up to date with some of our top stories this hour.
Millions of people in the U.S. are waking up to winter storm warnings. Some 3 feet of snow has already fallen in the plains where blizzard conditions are expected for the next few hours at least. Now the slow- moving storm could bring a foot of snow to parts of Pennsylvania and New England.
Missile attacks are reported in cities across Ukraine this morning including Kyiv, Odessa and Kharkiv. CNN's teams on the ground said they saw missiles and heard explosions as air raid sirens sounded.
U.S. financial markets are hoping to rebound from a steep drop on Thursday but right now the Dow, Nasdaq and S&P futures are all in the red. Trading has been underway for about 90 minutes in European markets. And as you can see, they are in negative territory. In Asia, Hong Kong's Hang Seng index finished higher. Tokyo's Nikkei saw a big drop, the Shanghai Composite and the Seoul Kospi were basically flat.
British and EU regulators are taking a cue from Washington on their efforts to tame the highest inflation in decades. They each raised interest rates by half a percentage point on Thursday, the day after the U.S. Federal Reserve did the same. Inflation on both sides of the English Channel is still in the 10 percent range even though it did tick down last month. There's a concern more interest rate hikes will push economies into a recession which is already looming in Britain. The regulators say they don't have much of a choice. Listen to this.
(BEGIN VIDEO CLIP)
CHRISTINE LAGARDE, PRESIDENT, EUROPEAN CENTRAL BANK: We decided to raise interest rates today and expect to raise them significantly further because inflation remains far too high and is projected to stay above our target for too long.
ANDREW BAILEY, GOVERNOR, BANK OF ENGLAND: Now we think we've seen possibly this week, the first glimmer that were the figures that were released this week. That it's not only beginning to come down but it's a little bit below where we thought it would be. And that's obviously very good news. But there's a long way to go.
(END VIDEO CLIP)
BRUNHUBER: Now inflation is still a concern here in the U.S., of course. But Thursday's stocks dropped on other big news.
The markets nosedived after the Federal Reserve predicted the U.S. economy will barely grow next year. As Richard Quest reports, the economic prospects are now becoming more clear and more grim.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: This was the day when reality seemed to seep in. As interest rates rose in Europe, the ECB and the Bank of England both raised rates by half a percentage point. And of course, we have the rate rise from the U.S. only 24 hours earlier.
The reality that's seeping in is that next year is going to see even higher rates with slower economic growth. Some might call that stagflation, others are refusing to use that term and there are still those that won't admit the reality that there'll probably be a recession in the United States.
Whichever way we cut it, the markets are unhappy because of what they see as the higher interest rates now moving very firmly into that phrase, restrictive territory. The very goal of these higher rates is to slow down economic activity. And we saw that in the U.S. with the latest retail sales numbers, which were down. We know that the consumer is starting to get exhausted. Even though it might be Christmas, if we look into 2023, I'm afraid the economic omens are not that good.
Richard Quest, CNN, New York.
(END VIDEOTAPE)
BRUNHUBER: British nurses walked off the job for the day on Thursday with as many as 100,000 members of the UK's largest nurse's union participating in the historic strike. The nurses want a pay raise that's 5 percent above the inflation rate. A total of 19 percent hike. But they also say they're calling attention to the crisis in the country's national health care service after years of falling pay and declining standards.
(BEGIN VIDEO CLIP)
GEOFF BRENNAN, PSYCHIATRIC NURSE: This group don't want to be here, they want to be in there. I don't want them to be here. I want them to be in there. But we've got no choice. If we continue to just sit in there and endure the conditions that are going on, they won't exist anymore.
[04:35:00]
IAN HENDERSON, OPHTHALMOLOGIC NURSE: It's more difficult to recruit nurses. So, where I used to have in the double figures -- 15 people are applying for one job. Now I might have to kind of put the job out several times before I get anybody and that's the difference is that people don't want to come into nursing anymore.
(END VIDEO CLIP)
BRUNHUBER: The nurses will strike again on Tuesday. U.K. is seeing a wave of industrial action this month. Transportation and border workers, teachers, postal workers, baggage handlers and paramedics have all either gone on strike already or plan to do so.
President Biden on Thursday says he supports the African Union joining the G20 saying, quote, Africa belongs at every table where global challenges are being discussed. And that declaration came on the final day of the U.S./Africa Summit in Washington with the administration pledging billions in new investments. After years of neglect by the U.S., some African leaders remain skeptical of America's resolve. Here's what the president said on Thursday.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: The choices that we make today and the remainder of this decade and how we tackle these challenges in my view will determine the direction the entire world takes in the decades to come. The United States is all in on Africa and all in with Africa.
(END VIDEO CLIP)
BRUNHUBER: Biden said the U.S. was prepared to invest some $55 billion in African nations over the next three years. He also says he intends to visit Africa sometime next year.
It was a painful moment for the families who lost loved ones in a Halloween tragedy in South Korea. Right now, some of them are visiting the site of the incident for the first time since it happened. That's ahead.
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BRUNHUBER: Experts say North Korea could be taking its ballistic missile technology to the next level. State media say leader Kim Jong- un attended a test of the new solid-fuel rocket engine on Thursday.
[04:40:00]
The test was reported as a success which Western experts said could be significant. Pyongyang has so far only been using liquid fuel rocket engines. But missiles propelled with solid-fuel are easier to launch and give opponents less time to react. Experts say North Korea would still be a number of steps away from using those engines in its ballistic missiles.
Asian state media report at least 16 people have been killed following a landslide at a camp site in Kuala Lumpur early Friday. 17 people are still missing. Authority say hundreds of rescue workers are part in a search and rescue operation.
Right now, families -- victims' families are commemorating their loved ones who died in a horrific tragedy during Halloween celebrations in South Korea. They're holding a memorial service in Seoul to honor the 158 people who were crushed to death in late October. The event is especially hard for some families because it's their first time at the side of the tragedy since it happened.
Paula Hancocks is standing by near the site of that memorial service and she joins us now live. So, Paula, obviously a really sad and poignant day for so many family members of loved ones. They've been visiting the site. Take us through the scene right now. What are they been seeing and what are they telling you?
PAULA HANCOCKS, CNN CORRESPONDENT: Well, Kim, what we're hearing and seeing at the moment is the names of all those that were lost in that crowd crush being read out to the families and the friends that are congregated here. There are also some of the first responders who were first on the scene desperately trying to save lives that have come here to pay their respects and just the general public as well. Those who want to show their support for those left after 158 lost their lives in that Halloween crowd crush.
In the alley itself just close to the stage behind me is filled with notes, messages. There's a make shift memorial that started a month and a half ago the day after the tragedy. That is still going at the subway exit as well. Everybody wanting to show support for those affected by this tragedy.
(BEGIN VIDEOTAPE)
HANCOCKS (voice-over): A painful look at the last hours of their daughter's life. Oh Il-seok and Kim Eun-mi look through photos on her phone, trying to piece together how Ji-min became one of the 158 victims of Seoul's Halloween crowd crush.
KIM EUN-MI, MOTHER OF ITAEWON CRUSH VICTIM (through translator): I can't look at the photos. They make me cry.
HANCOCKS (voice-over): The 25-year-old was photographed at 9:35 p.m. inside a bar. Then outside, in an increasingly crowded backstreet of Itaewon. 9:59 p.m., her father said she messaged friends to say she was going home. At 10:07 p.m., the last photo Ji-min took with her friend. Her friend, who survived, says a few minutes later, the slow- moving crowd suddenly moved faster, sucking them into the alleyway.
Her parents and older brother made frantic phone calls to hospitals and police. At 1:00, the following afternoon, they were asked to come and identify their daughter's body at a hospital morgue.
OH IL-SEOK, FATHER OF ITAEWON CRUSH VICTIM (through translator): That image of her keeps coming to me, so I can't sleep at night.
EUN-MI (through translator): It snowed yesterday and got cold. Ji-min is buried outside. It makes me more sad.
HANCOCKS (voice-over): Grief is becoming clouded with unanswered questions and anger.
IL-SEOK (through translator): I hope the truth will be revealed soon. We don't know how my daughter died. How her body ended up there.
HANCOCKS (voice-over): A special investigation is ongoing. Ku-lok (ph) shared the first emergency calls for crowd control came in about four hours before the tragedy. So far, two police officers have been dismissed and arrested, accused of destroying evidence. The chief of police in the area has been suspended. One police officer, who wants to conceal his identity for fear of retribution for speaking out, says he arrived to see a pile of people in a narrow alley.
UNIDENTIFIED MALE (through translator): We could not pull people out from the bottom. There was too much pressure. I assume they had already died. People in the second and third layers were fading, crying out for help, but we could not pull them out.
HANCOCKS (voice-over): He says it was already too late when he arrived and safety planning should have been made in advance.
UNIDENTIFIED MALE (through translator): The problem with this now is that the people who should really be responsible are not taking responsibility. The direction of the investigation is not looking up, only down. There may have been mistakes trying to save just one more life but if you blame us, who would want to do this job?
HANCOCKS (voice-over): Political infighting and finger-pointing has no place in the home where Ji-min grew up. Her parents read every birthday card, pour over every photo, struggling to cope with the life-changing tragedy that should never have happened.
(END VIDEOTAPE)
HANCOCKS (on camera): Now, Kim, it is heartbreaking just how long it has taken to read everyone's name out. It just brings home how great this tragedy was. 158 lives lost in an alleyway on a night when many are supposed to be celebrating.
[04:45:00]
Now as some of those names are being read out. We can also hear cries from some of the bereaved families that are listening and sitting, wanting to be part of this memorial. Dozens of those families are now supporting each other as they wait to see what happened, how this possibly was able to happen. Obviously a very emotional evening for many here.
BRUNHUBER: Gosh, just heartbreaking. All right, thanks so much. Paula Hancocks, appreciate it.
Well, we're getting some new revelations from the final episodes of "Harry and Meghan." Up next, how the Royal family might react. Stay with us.
(COMMERCIAL BREAK) BRUNHUBER: A new CNN poll shows voters have little appetite for a Biden/Trump rematch in 2024. 62 percent of Republicans and Republican leaning voters want someone other than Donald Trump. 59 percent of Democrats and Democratic leaning voters want someone other than President Biden. CNN's Jamie Gangel sat down sat down for an interview with top Democrats in Congress to get their take.
(BEGIN VIDEOTAPE)
[04:50:00]
JAMIE GANGEL, CNN SPECIAL CORRESPONDENT: There is a CNN poll that just came out that shows there's little appetite on both sides for a Biden/Trump rematch in 2024. You're stepping aside. Do you think President Biden should step aside for a younger generation?
REP. NANCY PELOSI (D-CA), U.S. HOUSE SPEAKER: I think President Biden has done an excellent job as president of the United States. I hope that he does seek reelection. He's a person with a great vision for our country.
He's been involved for a long time, so he has great knowledge of the issues and the challenges we face. And he is the most empathetic president. He connects with the American people. The vision, the knowledge, the strategic thinking is all here. The empathy is from the heart. And I think that he has been a great president.
SEN. CHUCK SCHUMER (D-NY): Look at what he has accomplished?
GANGEL: Do you think he should run again?
SCHUMER: He has done an excellent, excellent job. When he runs, I'm going to support him all the way.
GANGEL: Right now, Donald Trump is the only Republican who has announced he could be the nominee, he could be president again. You've been through the first presidency. You've been through January 6th. What would it mean if Donald Trump was reelected president?
SCHUMER: I don't think it'll happen. I think people have gotten wise, too. Took a little while, but they did.
PELOSI: I don't think that we should talk about him while we are eating.
(END VIDEOTAPE)
BRUNHUBER: At 80 years old Joe Biden is the oldest U.S. president in history. Donald Trump is 68 -- 76, rather.
U.S. lawmakers have been calling for greater restrictions on TikTok citing what they perceive to be Chinese security threats. This week the Senate passed legislation banning the social media platform which has more than a billion users worldwide from U.S. government devices.
I think that TikTok is a national security issue. I would caution any parents letting their parents use it. I think it gives the Chinese communist party an opportunity to spy on all of us.
(BEGIN VIDEO CLIP)
SEN. ROGER MARSHALL (R-KS): And I think that TikTok is a national security issue. I would caution any parents letting their children use it. I think it gives the Chinese Communist Party an opportunity to spy on all of us.
The magic of TikTok -- and there's a lot of good things on TikTok -- the magic of TikTok is that the algorithms can be manipulated. So, I'm concerned that this could be used as a propaganda tool of the Communist Party of China.
BRUNHUBER: These are states that have banned the app on state issued devices. The Idaho, Wyoming and New Hampshire governors were the latest to join in. The fear is that user data could end up in the hands of the Chinese government.
U.S. House just brought Puerto Rico one step closer to becoming a U.S. state.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: 133, the nays are 191. The bill is passed.
(END VIDEO CLIP)
BRUNHUBER: Thursday the House passed the bill that would give Puerto Ricans a binding vote for either full statehood, independence or sovereignty in free association with the U.S. Now only Congress can grant Puerto Rico statehood.
The latest and final episodes in the "Harry and Meghan" documentary series offer the best look yet of the bad blood brewing between the British Royal family. The Duke and Duchess of Sussex allege there was jealousy, lying, even screaming. Max Foster has a look at the breakdown.
(BEGIN VIDEOTAPE)
PRINCE HARRY, DUKE OF SUSSEX: Good morning. It's 6:00 a.m. on the 14th of March, and we are on the freedom flight. We are leaving Canada and we are headed to Los Angeles.
MAX FOSTER, CNN ROYAL CORRESPONDENT (voiceover): The palace may have been spared in the first drop of episodes, but this time, Harry and Meghan didn't pull any punches.
PRINCE HARRY: Everything that's happened to us was always going to happen to us because if you speak truth to power, that's how they respond.
FOSTER (voice-over): In the final episodes of the couple's Netflix docuseries, Harry took aim at his brother.
PRINCE HARRY: It was terrifying to have my brother and scream and shout at me and my father saying things that simply weren't true and my grandmother, you know, quietly sitting there and sort of take it all in.
FOSTER (voice-over): The couple sharing their perspective on the Royal rift, which in their words, push them out of the fold. It started during their tour of Australia back in 2018. So successful it created jealousy in the palace they say.
PRINCE HARRY: The issue is when someone who's marrying in, it should be a supporting -- a supporting act, is then stealing the limelight or is doing the job better than the person who was born to do this. That upsets people. It shifts the balance. Within four hours, they're happy to lie to protect my brother. And yet for three years, they were never willing to tell the truth to protect us.
[04:55:02]
FOSTER (voice-over): Meghan says the stress of the media coverage was too much. Last year saying she didn't want to live anymore.
MEGHAN, DUCHESS OF SUSSEX: I was like all of this will stop if I'm not here. And that was the scariest thing about it is it was such clear thinking.
FOSTER (voice-over): But she also suffered physically because of the stress of the worldwide coverage and in British newspapers, including the "Daily Mail" which published a letter she wrote to her father.
PRINCE HARRY: I believe my wife suffered a miscarriage because of what the Mail did. They watch the whole thing. Now, do we absolutely know that the miscarriage was created -- caused by that? Of course, we don't. But bearing in mind the stress that caused the lack of sleep and the timing of the pregnant -- the timing of the pregnancy, how many weeks in she was, I can say from what I saw that miscarriage was created by what they were trying to do to her.
FOSTER (voice-over): The family's response, well, on Thursday, they showed a united front that at a planned engagement and the palace said they had no plans to comment on the series.
Max Foster, CNN, London.
(END VIDEOTAPE)
BRUNHUBER: That wraps this hour of CNN NEWSROOM. Thanks for watching. I'm Kim Brunhuber. "EARLY START" is up next.
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