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Biden to Tout Bipartisan Infrastructure Package; Beijing Slams Excessive Restrictions on Travel From China; Paying Respects to Pope Emeritus Benedict XVI; Global Football Legend Pele Laid to Rest in Brazil; Disgraced Crypto Mogul in Federal Court. Aired 4:30-5a ET

Aired January 04, 2023 - 04:30   ET

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

[04:30:00]

ELLIOTT GOTKINE, JOURNALIST: Ben Gvir has, in the past at least, advocated for a lifting of the ban. The new government, though, led by Prime Minister Benjamin Netanyahu, says there will be no change.

Elliott Gotkine, CNN, Jerusalem.

(END VIDEOTAPE)

BIANCA NOBILO, CNN ANCHOR: Beijing is hitting back at countries trying to restrict travel over its COVID surge. A live report from the Chinese capital coming up.

MAX FOSTER, CNN ANCHOR: Plus, the disgraced founder of a cryptocurrency exchange appears in a federal court. Sam Bankman-Fried makes his plea at what prosecutors call a, quote, a fraud of epic proportions.

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

Over 25 million people are under a severe storm threat across the southeastern United States. A new tornado watch has been issued to parts of Georgia, Florida and Alabama.

The U.S. House is set to reconvene in the coming hours. So once again try to select a Speaker. On Tuesday Republican Kevin McCarthy failed to secure the 218 votes needed in three rounds of voting.

NOBILO: As a new era of divided Congress unfolds, President Joe Biden will be joined by Republican Senate minority leader Mitch McConnell and others later today in an effort to highlight his bipartisan achievements. The president is traveling to the Ohio/Kentucky border for an event to highlight that this bridge that's due to receive federal funds for repairs. And those funds come from the massive bipartisan infrastructure package the president signed into law in 2021.

(BEGIN VIDEO CLIP) [04:35:00]

ANDY BESHEAR, (D) KENTUCKY GOVERNOR: The American people want to see results and infrastructure is one of those needs that's not blue or red, it's just critical for the safety of our families to get to work, go to church, or the kids to school and for the future of our economy. But if we can just view more things like infrastructure, you know, there's nothing partisan about clean water, about expanding broadband, about ensuring the health care needs for our people. There is so much that we could get done.

(END VIDEO CLIP)

NOBILO: Over the coming weeks President Biden is expected to reiterate his bipartisan achievements in stops around the country at the Republican House majority begins its work.

FOSTER: Disgraced U.S. Congressman-elect George Santos who is poised to take office, could soon face reinstated fraud charges in Brazil.

NOBILO: Authorities there plan to reopen the case against him from 2008 when Santos was accused of stealing a checkbook and using it to buy shoes and clothes. Last week Santos told "The New York Post" that he had not been charged with any crime in Brazil but documents show he confessed to police in 2010 that he had forged signatures on the stolen checks.

Brazilian authorities had suspended the investigation into Santos because they couldn't find him for nearly a decade. But they now say they've verified the New York Republican's location. They'll ask the U.S. Justice Department to notify him of the charges. Santos is already facing a federal investigation into his finances and mounting scrutiny over the lies in his biography.

NOBILO: Gosh, the plot continues to thicken.

FOSTER: And quite a lot going on there.

NOBILO: A lot, very busy. Well, we wait with baited breath.

A new version of the omicron variant of the coronavirus has taken hold in the U.S. and it is raising alarms.

FOSTER: According to data from the U.S. data U.S. Centers for Disease Control and Prevention, about 40 percent of new U.S. Covid cases are caused by subvariant XBB.1.5 by the last week of December. Virologists warrant that this new strain is spreading fast at a similar growth to B.A.5 which caused a surge in the U.S. over the summer.

Now for nearly three years people living in China were subjected to some of the strictest COVID rules on the planet. But now the government's ended the zero-COVID policy triggering a surge in new cases. It says travel restrictions from other countries were excessive. NOBILO: China's foreign ministry is calling the rule by other

countries, unacceptable as the EU considers countries already requiring tests from Chinese travelers.

FOSTER: For the latest CNN's Steven Jiang joins us from Beijing. The concern outside China is that people aren't -- you know, other countries aren't getting the right data out of China. China says it is being very honest about its data.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right, Max. You know, it's ironic that the Chinese are now accusing other governments of overreacting given, as you mentioned, they maintained some of the of the most draconian rules for some three years including measures targeting international arrivals, which by the way are now totally going away until this coming Sunday on January 8.

Now to be fair, some outside analysts have also said the new China specific rules are now going to be effective given the transmissibility of this virus and the lack of proof so far that a new variant or subvariant has emerged from the latest wave of cases here in China.

But as you said, the Chinese have no one to blame but themselves because of their lack of transparency. Despite their repeated denial. Now Chinese experts themselves have acknowledged in major cities like Beijing and Shanghai some 70 or even 80 percent of the population have been infected. That's millions of people in just two cities.

But when you look at the official national figures, the number of cases and especially the number of deaths remain ridiculously low and that just doesn't match the reality. From my vantage point what's happening on the ground, it's still very much a tale of two realities. On the one hand medical facilities from fever clinics to ICUs still overwhelmed by people seeking medication or treatment. Especially senior citizens with underlying conditions.

But on the other hand, we are seeing crowds, traffic congestion returning to cities, especially involving younger folks who have recovered from their infections. You know, flocking back to not only office buildings but also tourist destinations and shopping malls. That's the side of the story that government and state media are trying to highlight while downplaying the more grim side of the story.

But the biggest concern right now is the mass migration of millions of Chinese for the upcoming Lunar New Year holiday. That's the first time in almost three years we're going to see this kind of massive scale of travel nationwide. That's likely to bring the virus from cities to the countryside where the health care system is very much lacking or nonexistent and that is potentially going to have devastating consequences -- Max, Bianca.

FOSTER: out OK, Steven in Beijing. Thank you so much.

[04:40:00]

Now Chinese state media also reporting production at the world's largest iPhone factory owned by Foxconn is now running at nearly full capacity. This comes after workers walked out in October over COVID related working conditions and shortages of food. The month after that violent protests broke out when newly hired staff said management reneged on their promises. The company said in December it was working to restore production. A Foxconn official was quoted Tuesday saying iPhone City has around 200,000 workers on site now.

The disgraced founder of cryptocurrency exchange FTX pleaded not guilty to all charges in a U.S. federal court on Tuesday.

NOBILO: Sam Bankman-Fried is facing multiple charges of wire fraud and conspiracy for his role in what one prosecutor calls, quote, a fraud of epic proportions.

FOSTER: Prosecutors alleged he used customer funds to make investments in other companies, donate to political campaigns and cover loans made by a related hedge funds. His trial is set to begin on October 2nd.

NOBILO: And still to come, tens of thousands pay their respect to Pope Emeritus Benedict XVI. We'll be live in Rome at the public viewing continues ahead of his funeral.

FOSTER: And later, actor Jeremy Renner speaks out on social media for the first time a snowplowing accident. We'll have the details just ahead.

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FOSTER: NASA mourning the death of a space pioneer. Retired astronaut Walter Cunningham died on Tuesday. In 1968 he piloted the first manned mission in the space agency's famed Apollo program. He was the last surviving Apollo 7 astronaut. That mission paved the way for future space exploration involving humans like NASA's Apollo 11 mission which sent astronauts to the moon for the first time. Cunningham was 90 years old.

[04:45:00]

NOBILO: The third and final day of public viewing is now underway at the Vatican where Pope Benedict XVI is lying in state.

FOSTER: He died on New Year's Eve and the Vatican says tens of thousands of people have paid their respects and filed past his body inside St. Peter's Basilica. The former pontiff's funeral will take place tomorrow with Pope Francis leading the mass.

CNN's Frederick Pleitgen joins us from Rome with more on this. Fred, you've been inside the Basilica. So, tell us what that experience was like and also what details we're learning about the funeral. How it compared to past funerals of popes. I know you were at the funeral of John Paul II.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, absolutely, Bianca. And I could tell you, it was a humbling experience going inside St. Peter's Basilica yesterday and witnessing those masses of people who were coming by to pay their final respects to Pope Benedict XVI.

And you know, the Vatican said, it's been tens of thousands of people who have gone past here. I think that the number yesterday after the second day of him lying in state was about 130,000. I could tell you today having been here and stood here throughout the morning, there are already a lot of people who are coming once again.

Now at the end of the day the coffin will be sealed in a special ritual that is going to be taking place and that's going to be overseen by Pope Francis. And then tomorrow at this time, the service, the memorial service, the funeral service will be well underway for Pope Benedict XVI. And that's of course also, when a lot of heads of state are going to be arriving here. And that will also be overseen by Pope Francis as well.

All of that is going to take a little over two hours. And in the end, we're talking about a ritual where you have Pope Benedict who will be lying in a wooden coffin which will then be placed into a zinc coffin. Which will then be placed into a wooden -- another wooden coffin and then be laid to rest in the tombs underneath the Vatican. The place that Pope Benedict is going to be taking there is the one that was formally occupied by Pope John Paul II until he was declared a saint himself. So, it's going to be a very, very long ritual that's going to take place tomorrow.

And you were talking about the fact that in 2005 I was here when John Paul II was laid to rest. It is certainly back then it was a gigantic event with literally hundreds of thousands of people here and millions of people coming to Rome. Pope Benedict himself had requested a smaller, more humble ceremony for himself. Of course, only to the extent that something like that is possible with a gigantic body like the Catholic Church that of course is so influential in so many countries around the world.

Nonetheless, a lot of heads of state are going to be arriving here. The U.S., of course, sending only the ambassador to the Holy See. But the German delegation, for instance, all the heads of Germany's constitutional bodies including the president and the chancellor are going to be here at the Vatican for that tomorrow -- Bianca.

NOBILO: Fred Pleitgen in the Vatican, thank you so much. We'll be checking in with you tomorrow for the funeral.

Interestingly Fred was talking about the triple coffin that the Pope will be buried in. And inside the coffin, there are coins minted during his reign that go in there. As well as a one page account of his time as a Pope and I found out from the Catholic Reporter that we're expecting a tell-all book written by the former Pope's private secretary which will get into people sullying the pope's reputation.

FOSTER: Yes, because he became a very controversial figure later on, did me.

NOBILO: He did. And vastly different in his approach to the papacy to Pope Francis.

FOSTER: Yes, and it's not short of politics, the Vatican.

NOBILO: Noted.

FOSTER: Hundreds of thousands of people gathered on Tuesday for the public wake of the football legend Pele. So many turned up that thousands at the stadium were actually turned away. Pele's casket was then carried through the street of Santos Brazil where he rose to global fame. His son thanked mourners for their support and said, now he will rest.

(BEGIN VIDEO CLIP)

EDSON CHOLBI DO NASCIMENTO, SON OF PELE (through translator): On behalf of the family, we are grateful to everyone. To everyone for all the love, for all the affection, for the respect. And well, to express our gratitude, the greatest feeling of our family is gratitude, of a soccer player, is gratitude.

(END VIDEO CLIP)

NOBILO: Here is where Pele has been laid to rest. A vertical cemetery with 14 stories. His body is on the 9th floor which has a view of the Santos stadium where he set so many records. The floor was chosen in honor of Pele's father who also played football and wore the number 9. Pele died from multiple organ failure last week after battling colon cancer. He was 82.

Actor Jeremy Renner is thanking well-wishers in his first social media post since a snowplowing accident on New Year's Day. Renner took to Instagram on Tuesday to thank everyone for their kind words and also shared that selfie from his hospital bed showed the bruising. And his publicist said the accident occurred in Nevada when Renner was removing snow from a driveway so that his family members could leave after the holidays. He said that the actor remains in ICU critical condition but he is stable.

[04:50:00]

FOSTER: Still ahead, a welcome fit for a football superstar. Cristiano Ronaldo makes his first appearance for his new club after a bitter breakup with Manchester United. His reason for the big move next.

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FOSTER: Football superstar Cristiano Ronaldo received a very warm welcome from his newest supporters.

NOBILO: Roaring fans welcomed him to the Saudi club Al Nassr. The 37- year-old made his first appearance for the club in Riyadh on Tuesday after a very public split from Manchester United.

FOSTER: He never does anything low keyed, does he. Reinaldo says he's accomplished everything he wanted. So, the move to the Saudi club represents a new challenge.

(BEGIN VIDEO CLIP) CRISTIANO RONALDO, FOOTBALL PLAYER: What I want to expect to achieve, it's to make people happy, to enjoy myself, to help the country to be better and better and better not only football fan but always the families, football, which is the people they know. I know the league is competitive. People they don't know that, but the league is very competitive and I want to make people happy. This is my goal.

(END VIDEO CLIP)

NOBILO: Ronaldo says that he's proud to play in Saudi Arabia.

[04:55:00]

He's coming off a landmark World Cup appearance becoming the first man to score in five World Cups to recap in 2022.

And Wall Street is hoping to get back on track after a disappointing first day of trading for 2023. The Dow fell almost 11 points on Tuesday. The Nasdaq shed about 3/4 of a percent and the S&P 500 finished down with less than half a percent.

FOSTER: Let's see what's in store today. The U.S. futures showing where the markets may open when trading begins in a few hours' time. And they're pretty positive this time. The Nasdaq up half of 1 percent. Apple off to a sour start for the new year ago. The tech giants market cap fell below $2 trillion on Tuesday after reports raised concern about demand for its products. Apple has now lost a trillion dollars in market value over the past year.

NOBILO: And shares of Apple were down more than 4 percent in Tuesday trading. They're now down, as you can see, about 3.75 percent. We'll see if that news from China about supply being on the up now that the Foxconn factory is back up and running, so if there's anything to that. But as you say, impacted by that valuation dropping.

And we will finish this hour with a good news/bad news story. First, the bad news, no one matched all six numbers in Tuesday's Mega Million jackpot in the United States which would have been worth an estimated $785 million.

FOSTER: The good news, Friday's jackpot is nearing a billion dollars, would you believe it. If anyone wins, they can get $948 million paid out annually over 29 years or a one-time cash payout of about 483 million which raises the question, what would you do?

NOBILO: I would definitely take it every year just in case of a massive economic crisis devalued the lump sum.

FOSTER: And I'll take a lump sum. so, that says a lot about (INAUDIBLE).

NOBILO: It certainly does.

FOSTER: I'll see you later. For that my earpiece now fall out.

Thanks for joining us here for CNN NEWSROOM. I'm Max Foster. NOBILO: I'm Bianca Nobilo. "EARLY START" coming to you next.

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