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The Fed Raises Interest Rates By Only A Quarter-Point; Half A Million Strike In UK's Largest Walkout In 12 Years; Pakistan Finance Minister Meets IMF Delegation To Unlock Bailout; Israel Launches Airstrikes In Gaza After Palestinian Rocket Fire; At Least Three Killed In Kramotorsk Missile; Funeral Held For Controversial Australian Cardinal Pell; An Emotional Farewell In Memphis for Tyre Nichols. Aired 1-2a ET
Aired February 02, 2023 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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JOHN VAUSE, CNN ANCHOR: Wherever you are around the world, you're watching CNN Newsroom. Ahead this hour, the pace slows, but the hikes keep coming. And the U.S. fed warns it's not done yet, not even close.
Also ahead.
CNN reporting in frontline trenches with Ukrainian forces as they hold the line against an escalating Russian offensive.
And FIFA's incredible run of tone depth awful decisions continues, reportedly making a sponsorship deal with Saudi Arabia for this year's women's world cup.
UNIDENTIFIED MALE: Live from CNN Center, this is CNN Newsroom with John Vause.
VAUSE: Hopes on Wall Street are growing that the U.S. economy might just be heading for a so called soft landing, after the chairman of the Federal Reserve, Jerome Powell, acknowledged on Wednesday progress had been made in the fight against inflation.
The comments were more dovish than many had expected and came after the bank raised interest rates by a quarter of one point a smaller and more traditional increase in rates, especially compared to the past five increases.
Policymakers acknowledged inflation is easing somewhat but remains elevated, and they indicated more interest rate hikes will be on the way.
(BEGIN VIDEO CLIP)
JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: But that's not grounds for complacency. Although inflation has moderated recently, it remains too high. The longer the current bout of high inflation continues, the greater the chance that expectations of higher inflation will become entrenched.
(END VIDEO CLIP)
VAUSE: Economists point to wage growth, falling consumer and energy prices, and a slower housing market as signs the Fed approach is working. More now from CNN's Matt Egan.
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MATT EGAN, CNN REPORTER (on camera): The Fed's war on inflation isn't over, but strategy is shifting. This 25-basis point rate increase from the Fed is the smallest since last March, when this fight against inflation began. The Fed is still trying to slow the economy down to cool off inflation, but it's gone from slamming the brakes in the economy to just tapping the brakes, and that is an important shift because it lowers the risk that the fed ends up causing an accident either in financial markets or the real economy or both.
And the fed is changing its tune on inflation a bit. The fed statement acknowledged that inflation has eased, and during the press conference, Fed Chair Jerome Powell, he declared that the disinflationary process has begun. He also sort of shrugged off the January boom in financial markets, even though soaring stock prices actually makes the job of the Fed to get inflation down that much harder.
Now, markets seem to like what Powell had to say with stocks rallying during the press conference. But, you know, I would note that Powell did not mince words when it comes to inflation. He said it's, quote, very premature to declare victory or think that we've really got this. And listen to this clip from Powell.
POWELL: It's very difficult to manage the risk of doing too little and finding out in six or twelve months that we actually were close but didn't get the job done. Inflation springs back and we have to go back in and now you really do worry about expectations getting unanchored and that kind of thing. This is a very difficult risk to manage.
EGAN: Powell went on to say that he's not really that worried about the Fed going too far because the Fed has tools to deal with that. At the end of the day, the Fed sounds more encouraged about the inflation situation and they are slowing the pace of rate hikes. The Fed is not done here, but it does feel as though we are much closer to the end of this rate hiking campaign than the beginning. I'm Matt Egan, CNN at the Federal Reserve.
(END VIDEOTAPE)
VAUSE: Looming over the economic recovery, though, is the possibility the U.S. government defaults on its debt. The government hit the debt ceiling last month, and Congressional Republicans want spending cuts before raising the cap on borrowing.
The White House is refusing to negotiate or offer any concessions, and without a compromise, the government would be unable to pay its bills on time, may have to delay some payments to creditors. It could also affect Social Security payments, veteran's benefits and federal employee salaries.
House Speaker Kevin McCarthy was at the White House Wednesday to discuss this issue with President Biden. He says he's optimistic they can reach a deal long before the U.S. defaults on its debt.
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REP. KEVIN MCCARTHY (R-CA) HOUSE SPEAKER: We had an hour conversation about this that I thought was a very good discussion and we walked out saying we would continue the discussion.
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And I think there is an opportunity here to come to an agreement on both sides. We both walked away. We have different perspectives, but we both laid out some of our vision of where we'd want to get to and I believe after laying both of them, I can see where we can find common ground. I think the American public would appreciate that.
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VAUSE: Europe central bank is expected to raise interest rates by half a percentage point when it meets in the coming hours. This comes after new data shows the challenges facing the Eurozone economy. Consumer prices continue to rise and eight and a half percent annual rate in January. But that's slower than a month earlier in December. The rate has eased off for three straight months now.
But core inflation, which looks at a narrow set of data, showed the core price growth holding steady at 5.2 percent annually.
Across Britain, about half a million voters went on strike. The UK's biggest industrial action in more than a decade. They're protesting years of wages that have not kept pace with a staggering rate of inflation. The walkouts hauled train lines to close thousands of schools. Britain's Conservative government has taken a firm stand against the walkouts, the Prime Minister criticizing unions forcing children to miss school.
But the former Labour leader shared a very different outlook while marching on Downing Street.
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JEREMY CORBYN, FORMER BIRITISH LABOUR LEADER: Fund education properly, paying the teachers, properly give the education experience one of joy and hope for young people can stress and too much depression.
(END VIDEO CLIP)
VAUSE: Later this hour we'll have more on this mass industrial action, including what could break the deadlock as both sides continue to deepen.
A delegation from the International Monetary Fund is in Pakistan right now is soaring inflation and the impact of climate change had the country's economy in free fall. CNN's Sophia Saifi is in Islamabad right now, she joins us live.
And Pakistan is not alone here facing this kind of crisis, soaring cost of energy and diminishing financial reserves means that they're practically bankrupt at this point, unable to meet their payments.
SOPHIA SAIFI, CNN PRODUCER: Yes, I mean John, $3.75 billion left in Pakistan's foreign exchange reserves at the moment that's just enough for about three weeks of imports. Pakistan's people are living through an extreme cost of living crisis. They're concerns that the country is going to default.
But I went out and spoke to people on the streets and this is what they had to say about what they're going through in their daily lives at the moment.
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IMRAN ULLAH YOUSAFZAI, BAKER (through translator): You look at everything, flower, gas cylinders, electricity, the rates of everything have shot up. Because of that, our earnings have come down. It's become very difficult to keep surviving like this.
SYED JAMSHED BUKHARI, DRIVER (through translator): Since onions became expensive, I've stopped buying them, I've left them. But this is not just stopping Iranians (ph). Anything we buy to eat, if we bought one kilo, we buy a quarter of that now. This is the story of every home, not just mine. It's so hard to survive right now.
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SAIFI: These are people who aren't just suffering from the economic crisis. They're having to deal with the political crisis. There is the threat of militancy in this country. Pakistan has gone through about three finance ministers with three deferring economic policies just in the past year. We've got the IMF coming in. They were supposed to finalize their review and had the funds coming in by November of last year. That hasn't happened yet.
There are very extreme decisions that need to be made by the Pakistani government in order for these very important funds by the IMF to come in. I mean, we're being told by analysts that Pakistan could default if these funds don't come in. Even when they do, Pakistan has an unhealthy dependency on the IMF, and this could just be a band aid on the wider crises facing this country. John.
VAUSE: Sophia, thank you for the update there from Pakistan. We appreciate that. Thank you.
Israeli airstrikes targeted central Gaza early Thursday morning. Palestinian news agency WAFA reports F-16 warplanes fired at least five missiles, causing a fire and damage to nearby homes. The Israeli Defense Forces said in a tweet, the strike was in response to rockets launched from Gaza. The idea of claiming its fighter jets struck a chemical and weapons manufacturing site operated by Hamas. This comes as the U.S. continues to call for a de escalation of violence. A search and rescue operation is underway in eastern Ukraine. Officials say a Russian airstrike on a residential area in the city of Kramotorsk has killed at least three people and wounded 20 others.
The missile completely destroyed one apartment building, damaged seven others. President Volodymyr Zelenskyy said such attacks were now a daily reality for Ukraine, the result of, quote, absolute evil on its border.
Meantime, to the east, pro-Russian forces claim to be close to it, certainly in the city of Bakhmut. Ukrainian reports confirm ongoing heavy fighting, and Ukrainian officials believe Russia is preparing for a maximum escalation of the war within two to three months.
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An assessment by Ukrainian defense intelligence says February and March will be, quote, very active. President Zelenskyy is hinting an uptick in activity is already underway.
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VOLDYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): A definite increase has been noted in the offensive operations of the occupiers on the front in the east of our country, the situation has become tougher. We have stood firm all this time from February to February. The enemy is trying to achieve at least something now to show that Russia has some chances on the anniversary of the invasion.
(END VIDEO CLIP)
VAUSE: Right now on the front lines in eastern Ukraine, it's quite literally trade warfare, a grueling back and forth reminiscent of World War II, made all the worse by the brutal cold of winter. Here's CNN Fred Pleitgen.
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FREDERIK PLEITGEN, CNN SENIOR INTENATIONAL CORRESPONDENT (voiceover): All our winter warfare on the eastern front. We're in a trench with Ukrainian paratroopers, they fire on Russian positions using AKs and a U.S. supplied Browning heavy machine gun.
They're searching for weak spots in our positions, says the commander call sign Ghost. They want to see if we fight back. We show strong resistance, though they don't advance. This is what strong resistance looks like.
The Russians are only about 400 yards away, hidden in the snow and fog, but constantly firing at the entrenched Ukrainian. The enemy uses all kinds of weapons, Bogdan (ph) says, small arms, heavy machine guns, artillery, mortars, rocket launchers, and aviation as well.
But so far, the Ukrainians say they haven't lost an inch of territory here. PLEITGEN (on camera): The Ukrainians say the situation here is
reminiscent of some of the worst times in World War II, where they're not only fighting a strong adversary, but the elements as well.
PLEITGEN (voiceover): The snow, the mud, and the cold make fighting here even tougher. And Ukraine's leadership believes the Russians will soon escalate even more after mobilizing hundreds of thousands of men for a likely spring offensive.
But this gunner, who goes by the name Deputy, says the paratroopers are ready. It will be hard, he says. It will be tough, but we will hold because we stand here for our land. If we don't do it, nobody will.
There's a visceral hatred towards Moscow's leaders among these men. In Russia they have a terrorist dictatorial regime, Bogdan (ph) says. Now the civilized world is fighting against this wild, medieval dictatorship.
As we prepare to leave, incoming grenades explode above. And this, the man say, is a relatively quiet day. They expect much worse in the months to come, but their motto is, if not us, who else? Fred Pleitgen, CNN, (INAUDIBLE), Ukraine.
(END VIDEOTAPE)
VAUSE: Ukraine is ramping up its anti-corruption campaign with raids across the country targeting current and former government officials as well as former leaders of Ukraine's largest oil producer, all suspected of financial and other crimes.
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ZELENSKYY (through translator): Today is a fruitful day for our country, a fruitful day in confronting those who are trying to weaken Ukraine. Even at this moment, we will not allow anyone to weaken our state.
(END VIDEO LCIP)
VAUSE: The raids come just two days before a meeting on Ukraine's application to join the EU. Ending corruption, or at least a determined effort by the government to try and do so, is a key part of that process. More now from CNN's Scott McLean.
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SCOTT MCLEAN, CNN CORRESPONDENT (on camera): Well, Ukraine has long held the reputation as one of the most corrupt countries in Europe. President Zelenskyy was elected in part on a promise to do something about it.
Last month, a number of high level officials either resigned or were fired over corruption allegations. And last night, Zelenskyy promised new reforms were coming to make his country more effective and transparent. Just hours later, the majority leader in parliament announced a brand new crackdown, which included searches of the state tax service, dismissal of the entire management team of the customs agency, and notices of suspicion being served to defense Ministry officials.
One of the raids was on the head of the Kyiv's tax authority, accused of a scheme to effectively look the other way on about $1.2 billion in unpaid taxes. Officials say that searches of his property and office turned up cash totaling about $175,000, plus luxury cars and watches. CNN has reached out for comment. Scott McLean, CNN, London.
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VAUSE: The U.S. state of Texas has buried the brunt of a brutal winter storm, affecting states all the way to the East Coast. At least three people have died in Texas from dangerous road conditions as the snow, freezing rain and sleet continue to fall, making travel treacherous.
National weather services advised drivers to stay off the roads, but not everyone heeded that advice. This was a multi vehicle pile-up in Reeves County, Texas, on Tuesday. Line of trucks and other vehicles was enough to shut down the Interstate. This was the only one of many scenes just like it. And among the dangers are also moments of levity, like in this video.
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UNIDENTIFIED MALE: The crazy thing about this is that this protective net for the trampoline, that's so crazy. Wow, look at that. Yes, it looks like it's cold and water, but jeez, that is pretty crazy.
(END VIDEO CLIP)
VAUSE: Almost 400,000 homes and businesses in Texas alone had no accuracy late Wednesday as temperatures continued to fall.
When he rose to the highest levels of the Catholic Church had provoked a strong backlash among many within the church. Just ahead, a closer look at the troubled legacy of Cardinal George Powell as he is laid to rest.
Also, a tip of farewell for Tyre Nichols, whose violent death the heads of Memphis police shocked the nation. There's details also in a moment.
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VAUSE: Of the most controversial figures in the Catholic Church was laid to rest on Thursday. Funeral mass was held in Sydney for Cardinal George Pell, where he was once archbishop. He died three weeks ago in Rome, aged 81.
The faithful filled St Mary's Cathedral, but many of his detractors protested outside and a number of people were detained. He became the highest ranking Vatican official to be convicted of child sexual abuse in 2018. He always denied the accusations, but spent 13 months in prison before the conviction was overturned in 2020. Covering all of this life of Hong Kong versus CNN to Anna Coren, to say he was divisive is sort of an understatement, really.
ANNA COREN, CNN CORRESPONDENT: Incredibly polarizing. Look, I think, John, there certainly are people grieving and those mourners are in attendance at St Mary's Cathedral in Sydney. This was also a man who was despised, you know, reviled by many even within the Catholic Church, people who felt that he had turned a blind eye to child sex abuse within the Church, or to protect the Church.
I think what was really interesting about the funeral today was the noticeable absentees being the Australian Prime Minister, Anthony Albanese. He was not there. Nor was the New South Wales premier Dominic Perrottet. They were not in attendance.
Call it what you will, whether they're gaging, you know, public opinion, but their absent was noted.
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Former Australian Prime ministers John Howard and Tony Abbott were there. Tony Abbott described Pell as the greatest Catholic that Australia has ever produced. And as you say, I mean, this is a man who rose through the ranks. Archbishop of Melbourne. Archbishop of Sydney. A cardinal, he went to the Vatican. He was number three, you know, in Rome.
But obviously, there are people who feel very passionately about what has taken place under his watch. Those protesters, there were hundreds of them there outside St. Mary's Cathedral. They had to be separated from the mourners by police, but they led a march with a giant rainbow flag, shouting slogans like, Go to hell George Pell. Let's take a listen to some of those protesters.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Basically just to show solidarity with the victims and the survivors of what's happened through the Catholic Church, but particularly George Pell.
UNIDENTIFIED MALE: He was a Pedophile facilitator, and he couldn't be looked at any other way. That's how we should be remembered. A man that thought, hurting children and abusing children was OK.
(END VIDEO CLIP)
COREN: Now, Pell returned from the Vatican to face charges of child sex abuse in 2017, John. He was accused of molesting two choir boys when he was Archbishop of Melbourne. He was convicted, as you said, in 2018, spent 13 months in prison. That conviction was quashed by the High Court of Australia in 2020.
Now, his supporters will say that he was exonerated of his crimes. However, a royal commission into institutional responses to child sex abuse found that George Pell personally knew of pedophile priests sexually abusing children as early as the 1970s and did nothing about it.
You know, I spoke to one of the mothers of victims of Pedophile priests. Her name is Chrissie Foster. She is an incredible force of nature. Her two girls were sexually abused by a Pedophile priest. They were five and seven. This man was known to the hierarchy of the Catholic Church for decades.
Her little girls, when they became teenagers and adults, one of them committed suicide. The other one threw herself in front of a car and is now permanently disabled. Chrissie said to me, Anna, there is a place in hell for people who ignore child sex abuse. John.
VAUSE: Does be the question why the government released the unredacted version to the royal commission after he was let out of prison. But that's for another time. Anna, thank you. Anna Coren live in Hong Kong.
U.S. Vice President Carmel Harris was among the Mourners attending Wednesday's emotional funeral for 29-year-old Tyre Nichols, who died more than three weeks ago during a violent confrontation with police in Memphis, Tennessee. Five former officers now face murder charges. One of the city's main bridges was lit up as tribute to Nichols. CNN's Ryan Young has more now on the funeral. Some of the images, though, in his report may be disturbing.
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ROWVAUGHN WELLS, TYRE NICHOLS' MOTHER: Tyree was a beautiful person. If it is to happen to him, it's just unimaginable.
RYAN YOUNG, CNN NATIONAL CORRESPONDENT (voiceover): A goodbye to a beloved son, moving tribute and a call for change.
RODNEY WELLS, TYRE NICHOLS' STEPFATHER: We have to fight for justice. We cannot continue to let these people brutalize our kids.
YOUNG: Grieving family and friends celebrating the life of Tyre Nichols today.
WELLS: I promise you the only thing that's keeping me going is the fact that I really, truly believe my son was sitting here on an assignment from God.
KEYANA DIXON, TYRE NICHOLS' SISTER: I see the world showing him love and fighting for his justice. But all I want is my baby brothers back.
LATOYA YIZAR, FAMILY MEMBER: I'm just trying to go home. Don't I deserve to feel safe?
YOUNG: A young father, artist and avid skateboarder, who died after a violent encounter with Memphis police.
BEN CRUMP, CIVIL RIGHTS ATTORNEY: Why couldn't they see the humanity in Tyre? Because we have to make sure they see us as human beings. YOUNG: Civil rights leaders, community members and officials,
including Vice President Kamala Harris.
KAMALA HARRIS, U.S. VICE PRESIDENT: This is a family that lost their son and their brother through an act of violence at the hands and the feet of people who had been charged with keeping them safe.
YOUNG: With the families of other victims of police brutality in n attendance.
REV. AL SHARPTON, CIVIL RIGHTS ACTIVIST: the mother, Falonus and Kiki, is here, of the Floyds. There's Bob and John's sister and Brandon. The mother of Eric Garner from New York is here. They know what it is to sit at a funeral like this.
YOUNG: A service painfully familiar for black communities in America.
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REV. DR. J. LAWRENCE TURNER, SENIOR PASTOR, MISSISIIPPI BLVD. CHRISTIAN CHURCH: We serve notice to this nation that the rerun of this episode that makes black lives hashtags has been cancelled and will not be renewed for another season.
YOUNG: The videos of the brutal police beating were released less than a week ago, and more videos of the incident are expected to be released soon. The city of Memphis saying it's preparing to release the recordings once an administrative investigation is complete and that the Nichols family and their attorneys have already seen the audio and video footage.
The investigation has led to firing of five officers and later, three fire department personnel. Additionally, two more Memphis police officers and two members of the Shelby County Sheriff's Office have been placed on leave.
Contradictions between the video of the fatal beating and the initial police report have prosecutors looking into further charges, including charges of false reporting in that police account for every other officer and fire department personnel at the scene. Personnel files for the five former Memphis police officers charged with Nichols death show several received written reprimands or short suspensions for violating department policies, including Demetrius Haley, who received a written reprimand in November 2021 for failing to document his role in the detention of a suspect who said she suffered a dislocated shoulder as she was arrested, and Desmond Mills Jr. Who received a written reprimand in 2019 for failing to document the use of physical force during an arrest.
None of the officers charged in Nichols' death had previously been disciplined for excessive force. But even as questions in this case linger, the call for change is clear.
SHARPTON: We going to change this country because we refuse to keep living under the threat of the cops and the robbers. YOUNG (on camera): Yes, one of the most emotional parts of this is
when you had Tyre's sisters talking about him wanting just to get home. That poem that she gave spoke to him just trying to reach home. You think about some of his last words when he was calling out for his mother. A lot of emotion here, especially with other mothers coming to this funeral to pay their respects to this family. Ryan Young, CNN, Memphis, Tennessee.
(END VIDEOTAPE)
VAUSE: Classrooms for empty train services canceled after the largest walkout by workers in the UK in years. Ahead, the strikers demands the government's response and the chances of a breakthrough.
Also ahead. It's for real this time. At least that's what FNL superstar Tom Brady says about retirement. Again. Fan reaction to the latest news when we come back.
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UNIDENTIFIED MALE: How old is he? Like 44? My command's going to call today at some point.
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VAUSE: Welcome back, everyone. I'm John Vause. You're watching CNN NEWSROOM.
Britain has seen the biggest day of widespread industrial action in more than a decade. Hundreds of thousands of teachers, railway staff and public servants walked off the job Wednesday demanding salary increases to cover the cost of the rampant inflation and surging cost of living.
The government is refusing to negotiate but instead trying to pass a new law which unions say is an attack on the right to strike.
CNN's Nada Bashir reports now from London.
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NADA BASHIR, CNN REPORTER: It's the biggest day of industrial action that Britain has seen in over a decade. An estimated half a million public sector workers striking across the country including teachers, transport workers, and civil servants.
With thousands of schools forced to close, most train lines at a standstill, and government services severely disrupted.
Here in central London, thousands of public sector workers have marched on Whitehall, the center of government, to demand better pay and better working conditions. Trade unions say the public sector is in a crisis. And this has only
been exacerbated by record high inflation and a deepening cost of living crisis.
The strikes come amid an ongoing standoff between the government and trade unions. Despite past walkouts and increasing pressure, the National Education Union says negotiations with the government have stalled and warns that schools are now facing a recruitment and retention crisis.
MARY BOUSTED, GENERAL SECRETARY, NATIONAL EDUCATION UNION: That's a toxic combination of overwork and underpay. So teachers are saying very reluctantly, none of the teachers behind wants to be on strike today. But they are saying very reluctantly that enough is enough and that things have to change.
BASHIR: The government maintains that the door for negotiations is always open. And when it comes to the education sector, Prime Minister Rishi Sunak has criticized those taking strike action.
RISHI SUNAK, BRITISH PRIME MINISTER: I am clear that our children's education is precious and they deserve to be in school today being taught.
And actually, the party opposite would do well to say that the strikes are wrong and we should be backing our schoolchildren.
BASHIR: But here in London some students have joined the march in solidarity with their teachers.
UNIDENTIFIED FEMALE: It's as simple as staff working conditions are our learning conditions. So you know when our staff is overworked, underpaid, stressed out, have no time off it ruins the quality of -- it ruins the quality of our education.
BASHIR: The government is now also facing protest against its controversial plans for a new law which would mandate minimum service levels in the public sector during strikes. Unions have dubbed it the anti-strike bill while Amnesty International has described the proposal as alarming warning it could further erode human rights in the U.K.
UNIDENTIFIED MALE: What do we want?
CROWD: 10 percent.
UNIDENTIFIED MALE: When do we want it?
CROWD: Now.
BASHIR: With further strikes planned, pressure on the government is only growing. And disruptions to everyday life are set to become a more frequent occurrence for a population already grappling with a deepening financial crisis.
Nada Bashir, CNN -- London. (END VIDEOTAPE)
VAUSE: With us now from Los Angeles CNN's European affairs commentator Dominic Thomas. Good to see you again Dominic.
DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Thank you, John.
VAUSE: Right now both the government and the unions -- they're both digging in like on the teachers' demands for pay increase for example. First we'll hear from the prime minister and then the general secretary of the education union. Here they are.
(BEGIN VIDEO CLIP)
SUNAK: When it comes to teachers, we've actually given teacher the highest pay rise in 30 years. It includes a 9 percent pay rise for newly qualified teachers and record investment in their training and development.
BOUSTED: There have been over the last 12 years really catastrophic long term decline in our pay. Teachers have lost 13 percent over that period. That in real terms are huge amounts to lose.
(END VIDEO CLIP)
VAUSE: You know, both statements can be true at the same time but the point here is that both sides are taking this hardline because they seem to believe public support is on their side. And one of them is going to be wrong. And that's the formula to an extended stand off and ongoing industrial action. Do what will break the deadlock here?
THOMAS: That's a great question, John. I mean in some ways I wish I knew the answer. I think what could break the deadlock here is that the government's position is a weaker one. We know that they are on their fifth prime minister since 2010 and with a general election looming.
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THOMAS: And unless they can address these issues and the underlying issues that have to do with the cost of living crisis and rising inflation, ultimately their position is weakened.
What we are seeing is that these strikes and that the empathy and sympathy for them is escalating. In some ways, the government has gone down a rather questionable path which is to try and stigmatize strikers, who are already struggling or shame them in the public eye. And I don't think they're winning that particular debate.
And we see throughout the month of February, that more labor action is planned and some of them are getting to a kind of historically and unprecedented level. And so the standoff will go on until the government breaks and addresses these issues.
And if they don't we are going to go down another road of historical precedent, which was all the way back to say 1979 when the Labor government was brought down under these kinds of circumstances and paved the way for Margaret Thatcher. And so I think that position is a vulnerable one at this moment.
VAUSE: And what we're seeing is industrial action across almost every sector of the economy. But essentially, the demands are the same, they just want to increase wages to cover this record high inflation.
Which then gets to this question of why we're seeing this sort of piecemeal approach if you like from the government. This refusal to get directly involved in negotiations by the prime minister and his cabinet.
So isn't there an argument here to be made that this is an to be made that this is a general problem, with an umbrella issue which is directly in the government's wheelhouse.
THOMAS: I think it is, John. The problem is that when we say the government, you know, who is it really that we're talking about. We know that these divisions over the past decade or so in the conservative party are along many lines. They can't even agree on how to go about addressing the particular issue.
You have one group of conservative and peace that are interested in further tax cuts for the wealthy and for businesses. Where as another group is first of all, clearly aware of the optics. In other words what would it look like to make and provide tax cuts to the wealthiest sectors of society while at the same time, arguing that the inflationary aspect has to be tackled first and foremost.
And instead of talking and tackling those kinds of issues. They're going down the road of first of all, not wanted to provide for the support for public
spending. They know that that is not popular with any of their members. And as I said, to go back stigmatizing the strikers and trying to turn public opinion against them.
The problem is that's a rising number of people that are siding with those, experiencing these working conditions and grievances society. And those are the very individuals that will eventually go to the polls to decide the fabric of the next government in the U.K., John.
VAUSE: And the government has actually proposed what many are calling an anti strike law. Amnesty International said the legislation ignore key safeguards that protect workers' rights under international law, gives ministers sweeping powers to propose minimal service levels after whatever consultations they see fit rather than require them to negotiate alongside unions and employers subject to third-party arbitration, where agreement cannot be reached.
Amnesty goes on to claim the law does not conform to international labor standards. So, instead of direct negotiations they're trying to find some common lines. What the conservative government seems to be heading down the road of direct confrontation.
THOMAS: They are John. And there once again historic precedents to this. We can go back to the factory years when there were different rules and regulations imposed that have to do with simply gathering in public places to try and not just curb striking but any form or kind of protest and activism.
So we see strikes here, but we also see protest and demonstrations that are similar in some ways in scale to the context in France. And the concern for both governments, whether it be the French government or the U.K. government here, it's not just a question of striking but the ways in which it is mobilizing an opposition and weakening the power and the government in power.
And part of that problem here too is that in many ways this conservative government and administration has spent more time on internal struggles and leadership challenges than really thinking about legislation.
And going down the road to further oppression, rules, regulations, and punishing those that are articulating in the public space their dissatisfaction with this government is only going to mobilize their own position and further weaken Rishi Sunak.
And the big question then will be is whether the Sunak can even withstand this in his party as they move towards a general action or whether he will be yet another fall guy in the conservative party.
VAUSE: That's always on the cards isn't it. Many (INAUDIBLE) changing leaders quite often and they've done a lot recently.
Dominic, good to have you with us. Thank you so much, sir.
THOMAS: Thank you.
VAUSE: Australia's reserve bank has announced a new design for the five-dollar note. Gone will be the portrait of Queen Elizabeth II to be replaced with a design honoring the culture and history of first Australians. Notably no mention of King Charles.
The current design will stay in circulation for the time being. It can even be used after the new design is released, one without King Charles.
[01:39:59]
VAUSE: Still to come. Irony is dead, Saudi Arabia maybe a potential sponsor for the Women's Football World Cup but co-hosts Australia and New Zealand are asking FIFA please explain.
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VAUSE: Hong Kong's Pak Nai is known for its stunning coast line and beautiful sunset. Also home to an abandoned oyster farm that's turned into a hot spot for marine diversity.
Today on "Call to Earth" CNN's Kristie Lu Stout reports on the success of a brief restoration project in the area and how the reintroduction of oysters has played a vital role.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN CORRESPONDENT: Tucked away in the northwest corner of Hong Kong with the high tech Chinese Mega city of Shenzhen insights is a rich habitat that is home to mangroves, soft muddy shores and oyster reefs that date back centuries.
For over 700 years, local farmers cultivated oysters here in the mud flaps of Pak Nai. In recent decades, traditional oyster farming has declined, due in part to coastal reclamation and an over harvesting.
But conservationists like Marine Thomas (ph) have discovered that reintroducing oysters to the abandoned reefs can boost biodiversity and strengthen these shores.
MARINE THOMAS, THE NATURE CONSERVANCY: Usually, people associate oysters with food, but less known is that oysters, and other shellfish, create habitats. They create reef habitats. In fact, just like coral reefs they will bunch together and create these hard structures that you can actually walk on.
STOUT: In a survey of the city's coast line, researchers in the Nature Conservancy at the University of Hong Kong discovered existing breeds like this old farms could potentially act as a storage of oyster larvae.
They also found that a single Hong Kong oyster can filter up to 30 leaders or eight gallons of water in hour. One of the highest filtration rates recorded for the species.
Another finding, the reaps host six times more species than bear mud flaps. As a positive as the piles have shown, might shelter shells provide shelter for worms and small crabs, attracting a variety of animals including birds, like this little egret.
And yet another benefit, mitigating the effects of climate change. So how does the humble oyster do that.
So how does the humble oyster do that?
THOMAS: So the humblest oyster will also help us fight climate change if it is in a restructure. so it's been a hard that is creating a barrier. Think of it as natural seawall. Then it's going to be good to be creating friction on the sea bottom that will attenuate wave action. And therefore also flooding at the back of it.
STOUT: Since 2020, Thomas and a team of the volunteers have been at work, restoring this abandoned oyster farm. They dry old cells from the sun before returning them to the water to form a base for oystery larvae to attach to.
[01:44:56]
STOUT: They hooked in through this millions of oysters to help revitalize the area over the next few years.
ASHLEY HEMRAJ, MARINE BIOLOGIST: One of the biggest things that always amazes me and makes me happy is seeing all the number of crabs here, especially here. As you walk the crabs walk away. If you fix on it, it is quite amazing to see this. It is really, really beautiful.
STOUT: As new oysters grow, they clean the water, provide shelter and food for wildlife. And join forces with the mangroves as a coastal buffer.
A spectacular sunset descends on Pak Nai as these small briny creatures work to build an ever more vibrant ecosystem.
Kristie Lu Stout, CNN -- Hong Kong.
VAUSE: Please let us know what you're doing to answer the call to earth with #CallToEarth. . You're watching CNN NEWSROOM.
Back in a moment.
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VAUSE: It's been 45 days since the end of the World Cup in Qatar, a tournament marred by the appalling treatment of migrant workers, highlighted by the cruel callous reaction by organizers to the death of one worker from the Philippines and once again, FIFA is at the center of a controversy of its own making.
The sports Web site, The Athletic, reports football's world governing body has struck a lucrative sponsorship deal with Saudi Arabia for this year's women's World Cup to be held in both Australia and New Zealand in July.
To be clear, Saudi Arabia is one of the world's most repressive regimes with an already long history of women's rights abuses. And despite progress in recent years, to this day, Human Rights Watch notes, Saudi women still must obtain a male guardian's approval to get married to, leave prison, or obtain certain health care.
Women also continue to face discrimination in relation to marriage, family, divorce, and decisions writing to children including child custody. Men can still file cases against daughters, wives or female relatives under their guardianship, for disobedience, which have previously resulted in arrests for small returns to the male guardians home or imprisonment.
This is to say nothing of the long jail sentences handed down to women activists who simply tweeted a retweet criticism of the regime.
Little wonder then co-hosts Australia and New Zealander were both blindsided and shocked to learn about this deal in the making. Both countries demanding a "please explain" from FIFA.
Joining us now is Christine Brennan, CNN sports analyst and sports columnist for the USA Today.
It's good to have you with us.
CHRISTINE BRENNAN, CNN SPORTS ANALSYT: John, it's great to be with you. Thank you.
VAUSE: Ok. So as for the why part of this, why FIFA would strike a deal like this, Craig Foster, former captain of Australia's Socceroos write this, "It is perfectly in line with FIFA's search for money at any cost. A complete disregard for human rights policy let alone, principles.
Unless we're being punked at this stage by FIFA, It seems hard to find another explanation. Is there another explanation out there?
BRENNAN: Probably not. The idea of taking money from repressive regimes is not new. And when we talk about FIFA we can also, of course, talk about the International Olympic Committee who took $51 billion do a billion that was spread Putin to build, '13, winner of it (INAUDIBLE) in 2014.
And of course it's not only given Beijing a Summer Olympics in 2008. Of course the Chinese government, we know how their repressive record on human rights, but the summer games in L.A. and of course, the winter games exactly a year ago in 2022.
[01:49:51]
BRENNAN: So these organizations are often in bed with the worst among us. They love the money, all of these leaders, some of them same people actually who are part of the federation and also part of the Olympic Committee.
It is all basically that same mindset. Money is good and they don't care where it's coming from. And it is truly appalling and yet it keeps happening over and over again.
VAUSE: The two chosen countries apparently, where unaware that this deal was actually in progress. Here is part of their complaint which was written to FIFA.
"Australia and New Zealand, both the sovereign nations, and it's double association, after decades placed the utmost importance on gender equality quality. And has sought to promote these ideals around the world.
Clearly that is something which is foreign to FIFA, but it is kind of a catch 22 here, right? Because in a sense women's soccer needs increased sponsorship. The sad reality is that Saudi Arabia has the money. So what are they to do here?
BRENNAN: See what they do. Yes. I was heartening to hear and read the New Zealand and Australia remarks. And this is what happens when you place a worldwide sporting events and a western democracy. Or in this case, two western democracies.
Isn't it wonderful? It's a breath of fresh air. They're fighting back. They're saying this is wrong. Compare, of course, what we had with Qatar just a month and a half ago, you know where anything goes, the worst of everything that we would know in terms of human rights violations. Everything that would have us recoil and say that just terrible for the 21st century.
Well Qatar did it and it just went on, the games went on and we played on the field. It was a very successful World Cup on the field.
But here, (INAUDIBLE) have them pushing back. Thank goodness for that. It's great to see it. But you're right, the conundrum is that all sports need funding. All sports need money. And women sports, obviously, starting much later than men sports, of course, are not often funded the same way, especially the women's World Cup of course, it's not getting anywhere near the money that the men's World Cup gets.
So yes, you can see the allure of taking that money. I would say, thanks but no thanks. And I love that the Australian and New Zealand officials are doing. I hope they succeed in saying we do not want Saudi money to be a part of our World Cup.
And I think that they can do without it because it is blood money in many ways from the Saudis.
VAUSE: And the Saudi can't be spending big on sporting right. In 2021, a report from human rights organizations Grant Liberty found Saudi Arabia spent at least $1.5 billion dollars on sportswashing at major international sporting events.
It seems unlikely they'd be spending next the money is that it wasn't producing results. So I guess what sportswashing (ph)_ works.
BRENNAN: Yes, maybe, although I've covered a lot of the Liv Golf, you and I we talked about that. And that is sportswashing 101. And it's worked also to let everyone who basically wasn't paying attention find out and remind themselves about the Saudi involvement in 9/11, especially not the 19 hijackers wore Saudis. Of course Mohammed bin Salman who runs -- the Crown Prince of Saudi Arabia, who runs the Saudi Investment Fund has been basically called the mastermind of the murder and dismemberment of Jamal Khashoggi, the Washington Post columnist by human rights groups and the United Nations.
So, you know, be careful what you wish for. If you want all the attention, well guess what, you're going to get the attention. And I promise to stay on that Liv Golf story. I promise to stay on this one. And I think there are other journalists like me and here we are talking about it, that has not putting the Saudi in a favorable light.
So yes, So they're spending lots of money, they're also getting lots of scrutiny. They hate that, and we're going to keep doing it.
VAUSE: Yes. (INAUDIBLE) is it Christine, which is good to see.
BRENNAN: Thank you.
VAUSE: Thanks for being with us.
BRENNAN: Exactly. Yes. Thank you.
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: How old is he like 44? The man got to call it a day at some point. He can't play football forever
UNIDENTIFIED FEMALE: Honestly, I'm pretty pissed. I went to Boston because I'm a Pats fan and then he went to the Bucs that year. And then, now he's retired. So I'm kind of really pissed off.
UNIDENTIFIED MALE: Tommy, we love and thank you for everything. You have been great and you've brought me 30 years of Sundays. I love, it thank you.
(END VIDEO CLIP)
VAUSE: NFL fans there with their thoughts on Tom Brady, the most celebrated quarterback of all-time, announced his retirement Wednesday. For those paying (ph) along at home that's the second retirement announcement in as many years.
But this time he says he really does mean it. More now from CNN's Andy Scholes.
(BEGIN VIDEOTAPE)
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: After a legendary 23-year career, Tom Brady announcing on Wednesday that he is retiring again. This time for good.
TOM BRADY, NFL PLAYER: You only get one super emotional retirement essay and I used mine up I last year. So really, thank you guys so much to every single interview we for supporting me. My family, my friends, teammates, my competitors.
SCHOLES: That's an announcement coming just hours after Brady walked the red carpet for his movie "80 for Brady".
BRADY: Let's go.
UNIDENTIFIED FEMALE: Oh my god, that's Tom Brady.
[01:54:54]
SCHOLES: There will never be another athlete like Tom Brady. Drafted 199th overall by The Patriots in 2000, Brady was a true underdog, only about 30 percent of six round picks make NFL rosters.
Brady went on to win seven Super Bowls. That is more than any other team in NFL history. What fans will always remember are the comebacks, most notably being down 28 to 3 to the Falcons Super Bowl 51, before orchestrating one of the greatest comebacks in sports history.
No matter the game, no matter the score, Brady proved it's never over when he was on the field.
BRADY: When you're losing late in the game, I mean what's the worst thing that can happen? You're already losing. So I always look at it as, you know, a great opportunity. Then I think, man, if we can come back and win this, this is what
people are going to remember.
SCHOLES: They say no one can defeat Father Time, well Tom Brady came the closest. Brady won three Super Bowls in his 20s, two in his 30s, and two more in his 40s.
Brady retired and then unretired before the 2022 season saying he still had the desire to play. But the past year was a rough one for Brady, on and off the season.
BRADY: I'm 45 years old, man. There's a lot (EXPLETIVE DELETED) going on.
SCHOLES: Brady and his supermodel wife, Gisele Bundchen announced their divorce after 13 years of marriage mid-season. And Brady had a losing record for the first time ever.
Gisele reacting to Brady's retirement saying, wishing you only wonderful things in this new chapter of your life.
At age 45, Brady leaves the game with numerous records including most passing yards and touchdowns. For 23 years he gave sports fans so many amazing moments.
That is why, when people discuss the best athletes ever, for many Tom Brady is at the top of the list.
BRADY: Thank you guys for allowing me to that need to live my absolute dream. I wouldn't change it. Thanks. I love you all.
SCHOLES: Thank you Tom Brady, sincerely -- football fans everywhere.
(END VIDEOTAPE)
VAUSE: Meantime, in other retirement news, the Crazy Train has finally stopped after five decades.
Heavy metal legend Ozzy Osbourne announced he's retiring from touring. According to the 74 yar old, a series of health setbacks including a spinal injury, COVID, Parkinson's as the reasons for his retirement, pretty good reasons.
However Osbourne says his singing voices is fine and he's looking for ways to perform without the need to continue to tour.
Thank you for watching. I'm John Vause.
CNN NEWSROOM continues after a short break with my colleague and friend, Rosemary Church.
I'll see you next week.
[01:57:40]
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