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U.S Tracks Suspected Chines Spy Balloon; Another Shelling in a Residential Area in Kherson; U.S. to Send Long Range Missiles to Ukraine; Top European Leaders Prepares Summit in Kyiv. Pope Francis Wraps Up Africa Visit; Zelenskyy Launched Corruption Crackdown in Ukraine; Russia's War in Ukraine Continues; CNN Reports on Indian Billionaire's Huge Losses; Green Comet Passes Earth for First Time in 50,000 Years; Kraft Wants Brady to Retire as a New England Patriot. Aired 3-4a ET
Aired February 03, 2023 - 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)
KIM BRUNHUBER, CNN HOST: Hello and welcome to all of you watching us around the world. I'm Kim Brunhuber. Coming up on "CNN Newsroom," U.S. officials believe China has sent a spy balloon to float over sensitive sites inside the country. Ahead, we'll look at how this could affect Secretary of State's upcoming visit to Beijing.
Plus, European leaders are in Kyiv right now for a wartime summit with President Zelenskyy. We'll take a look at what Ukraine says it needs to defend its borders.
And later, an event that is 50,000 years in the making, how to view the green comet as it passes overhead.
For the first time we are hearing directly from China after surprising reports that a suspected Chinese spy balloon is floating over the northern U.S. The Chinese foreign ministry spokesperson addressed the situation a short time ago saying they are aware of the reports. We will have more in a live report from Beijing in just a moment.
But a senior U.S. defense official says that Pentagon is confident this surveillance balloon belongs to China. The U.S. has been tracking it for a few days and says it entered Montana via Canada and we've hearing that it does not pose a serious risk. But it is traveling near sensitive sites. And people living in the Billings, Montana area definitely noticed something strange in the sky. Listen to this.
(BEGIN VIDEO CLIP)
UNKNOWN: There is the moon. And then there is that. What planet is that?
UNKNOWN: Okay. That's the moon, it's a little fuzzy out here and it's like kind of a crappy phone, but it's slightly overcast. But what the heck is that? That's not the sun. And according to my little planet guide it's not a planet. What the heck is that? Any help would be appreciated.
(END VIDEO CLIP)
BRUNHUBER: The military and White House say there are no plans to shoot down the balloon. It's traveling in a very high altitude, well above commercial air traffic, but the balloon is near a potential target for Chinese espionage. Intercontinental ballistic missiles located in Montana.
Meanwhile, the Biden administration says it acted immediately to prevent the balloon from collecting any sensitive information. CNN's Pentagon correspondent Oren Liebermann picks up the story.
OREN LIEBERMAN, CNN PENTAGON CORRESPONDENT: -- say it came into the U.S. over Montana, coming in from Canada, and that's where they began tracking it. At first, launching F-22 fighter jets. In the end, the decision was made not to shoot it down. President Joe Biden was asked for military options but senior military leaders including Chairman of the Joint Chiefs, General Mark Milley advised against shooting this down. Instead, they are keeping an eye on it and seeing where it goes.
The Pentagon does acknowledge it traveled over several sensitive sites but they won't specify which sites those are. It is worth noting that Montana is home to ballistic missile silos so, perhaps that's what this was after. It is also worth noting of course that the Pentagon says they are confident, very confident in fact, that this was launched by China and they brought it up through diplomatic channels both here in Washington and in Beijing, essentially to express how angry they are about this.
BRUNHUBER: Well, CNN Beijing bureau chief, Steven Jiang, joins me now. And Steven, we just got reaction from Beijing to this. What are they're saying?
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Yeah, Kim, I just came back from the foreign ministry's daily briefing where I asked them three questions about this alleged Chinese spy balloon. What's interesting is that the spokeswoman did not deny the balloon belongs to China outright, instead she gave this rather vague answer as you can see on your screen. She said, "We are aware of reports of the balloon and are trying to understand the circumstances and verify the details of the situation. I'd like to stress that before it becomes clear what happened, any deliberate speculation or hyping up would not help the handling of the matter."
She added, "China is a responsible country. We act in accordance with international law and we have no intention of violating other countries' airspace. We hope relevant parties would handle the matter in a cool-handed way."
[03:04:52]
So, this rather muted response seems to give some credence to the analysis by some U.S. experts that the revelation of this balloon was deliberate on the part of some U.S. officials to really put the Chinese on back foot ahead of the Blinken visit to allow the secretary to really address this issue with more directly, to confront them to basically tell them what the U.S. knows and what the U.S. would like to see Chinese do.
But it's also interesting that, when I and other reporters asked the foreign ministry spokeswoman about if this revelation would have any impact on this planned high-stakes visit. She dodged the question simply saying she has no information, no updates to announce. But the timing of this, of course, is what makes this very delicate and also potentially highly consequential because it really complicates things at a time when both governments, at least publicly, are saying they are trying to reset or at least stabilize this increasingly contentious relationship.
And remember, these kinds of incidents really, in a way, playing to the hands of hot liners on both sides. Already we're seeing some members of congress in Washington calling for stronger actions and new briefings and portraying this as yet another example of how President Biden's China policy is being too weak, and similarly on the Chinese side, you can see this potentially really stir up more nationalistic sentiment and feelings.
And so, you know, this obviously is not happening in a vacuum. Ahead of this visit, we are already seeing a flurry of activities on the U.S. part, not only on the economic and technology front, but also in the military sphere in terms of shoring up its presence in this region, including those newly signed agreements with the Philippines.
And even without this balloon revelation, expectations are already very low about this visit in terms of concrete results out of the meetings between Blinken and his Chinese counterpart, Kim. And with his revelation, I think it's just adding more uncertainty to this trip. Kim?
BRUNHUBER: Yeah. Really great to get your reporting there in Beijing. Steven Jiang, thank you so much. Well, Steven mentioned U.S. lawmakers are reacting. The top House Republican is sounding off on the balloon. Speaker Kevin McCarthy tweeted this. "China's brazen disregard for U.S. sovereignty is a destabilizing action that must be addressed and President Biden cannot be silent. I am requesting a gang of Eight briefing."
The Gang of Eight is a group of top congressional leaders and top lawmakers on the House and Senate intelligence committees. Now, as we mentioned, this is all happening as Antony Blinken gets ready to visit China for the first time since becoming U.S. Secretary of State and a number of contentious issues are on the table. CNN's Marc Stewart explains.
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MARC STEWART, CNN CORRESPONDENT (voice-over): U.S. Secretary of State Antony Blinken's next stop on his world tour, China.
MATTIE BEKINK, CHINA DIRECTOR, ECONOMIST INTELLIGENCE UNIT: It is a big deal and I think it's really important not just for the U.S. and China, in their own kind of economic political interests, but for the entire world to see these two superpowers find a way to get along.
STEWART (voice-over): But that may be a lofty goal. In March 2021, talks between Blinken and China's then top diplomat got off to a heated start. A meeting described as tough and direct. Yet the tone was more cordial when President Joe Biden met with Chinese leader, Xi Jinping at the G20 in November, setting the stage for Secretary Blinken's upcoming visit.
JOSH LIPSKY, SENIOR DIRECTOR, ATLANTIC COUNCIL GEOECONOMICS CENTER: The fact that the meeting is happening in and of itself is a success. This is the continuing of a thawing of the relationship that started in Bali between President Xi and President Biden.
STEWART (voice-over): Among the stress points to tackle, semiconductors, the war on Ukraine, human rights, Taiwan, and trade. But experts argued don't anticipate any tangible results just yet.
ALFREDO MONTUFAR-HELU, THE CONFERENCE BOARD: I don't think there is a big expectation that there will be huge positive outcomes with these meetings, but mainly around defining what both countries can do to not deteriorate the relationship.
STEWART (voice-over): If anything, the meeting sets to establish guardrails in a competitive relationship.
LIPSKY: What you need to do is be able to create trust. So, these two gentlemen can pick up the phone anytime, day or night, if there is a flash point or conflict and reach other and understand what's happening in the other countries.
STEWART (voice-over): A visible effort toward diplomacy and the political, social, and economic challenges. Marc Stewart, CNN, Hong Kong.
(END VIDEOTAPE)
BRUNHUBER: All right, for more on this, I want to bring in Malcolm Davis from Canberra, Australia. He's a senior analyst with the Australian Strategic Policy Institute. Thank you so much for being here with us. So, with this, you know, spy balloon, in some ways it seems comically low tech, but what do you make of this balloon and its purpose and capabilities?
MALCOLM DAVIS, MILITARY ANALYST: Look, I think what it is, is certainly a political message being sent by China to challenge the U.S. in terms of the upcoming visit by Secretary of State Blinken. It is a bit of a provocative shot across the U.S. bows, in that sense.
[03:09:59]
From a military technical perspective, I think, as you say, it's a very low-tech way of undertaking intelligence gathering in comparison to say, spy satellites. But in the way that they could use this balloon to gather signals intelligence and electronic intelligence over critical military sites, it's probably quite a provocative but effective way of gathering intelligence. BRUNHUBER: So, you think it's more to sort of listen in rather than
to see things, I guess? The U.S. decision not to shoot it down, it surprised some people. Do you agree with the rational, just let it go?
DAVIS: Yes, essentially because if you look at the imagery of the balloon you will note that there are two large arrays of solar panels below it and then in the middle there is a series of equipment, sections essentially and instrumentation package. This would have a fair bit of mask, given the size of the balloon. So, if they shot the balloon down, there is quite the possibility that that instrumentation package and the solar panels could actually cause damage or potentially even harm people on the surface below when it came crashing down.
BRUNHUBER: Okay. But it has to come down sometime. So, where could it land and then what happens then? Does it -- sort of what we see a, James Bond like race to get to it first?
DAVIS: Well, my initial thought was Ice Station Zebra if you remember that movie. But essentially, yes, it does have to come down at some point. And so, the instrumentation package on that balloon would be of intelligence value to the U.S. The U.S. would obviously want to get a hold of that.
The Chinese would want to stop them from getting that, so really it does depend on where it comes down. If it comes down over the ocean perhaps in the Gulf of Mexico or in the Atlantic Ocean, then it is a challenge in terms of recovering it from the water. If it comes down over land, potentially over Central America or Mexico, that's an even more challenging scenario because then it's in someone else's territory. So, it would be interesting to see that ultimate endgame works out.
BRUNHUBER: So, we talked a little bit about the timing here, with the U.S. Secretary of State Antony Blinken heading to China. We heard from some of our reporters that this was -- the revelation of this balloon was sort of a message from the U.S. side to say, you know, to put China on the defensive. But you're saying this was more a message from China, is that right? Do you think this further complicates the already fraught diplomacy that is going on here?
DAVIS: It does certainly make it more difficult for Secretary of State Blinken's visit to succeed. Maybe hard-liners in the Chinese communist party don't want it to succeed. Whatever you define success as. But certainly, I think that, you know, the Chinese sending this balloon over now was very poorly timed from a diplomatic perspective because it would undermine U.S. interest in having a reconciliation with the Chinese, if they are doing these sorts of provocative actions.
At the same time, the Americans highlighting the fact that there is this balloon, I think, identified by a lot of people on the ground and (inaudible) on social media, really does force the U.S. to actually (inaudible) state that the Chinese are doing these sorts of flights in the past and this latest one is carrying it over. Really sensitive military sites, including ICBM fields in Montana. BRUNHUBER: All right, we'll have to leave it there, but we appreciate
your analysis. Malcolm Davis, thank you so much.
DAVIS: Thank you very much.
BRUNHUBER: All right, now to the war in Ukraine where authorities in the southern port city of Kherson reports Russian forces are shelling residential areas. At least two people were killed in the latest attacks, the regional prosecutor's office has opened criminal proceedings. Russian forces were driven out of the city only three months ago.
The deputy head of Kherson's regional council says Ukrainian forces are working very well to destroy Russian military targets across the Dnipro River. Further north, there is no letup in Russia's missile barrage against residential areas in the city of Kramatorsk. At least four people were killed, 18 wounded in the latest attack. CNN's Fred Pleitgen and his team were heading to the scene of one strike when a second missile hit.
(BEGIN VIDEOTAPE)
FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Two missile strikes on the city Kramatorsk in eastern Ukraine. Right at the location that we're about to film.
(On camera): There were just two massive missile strikes right in our vicinity. You can see it's just a couple of yards away from where we are. We're not exactly sure what kind of missiles it was, but this is a residential area. We're right in the middle of town.
(On camera): Photojournalist, Mattias Heng, films the damage caused by the impact. Ukrainian authorities later said they believe the missiles were S-300s, normally used to shoot down planes, devastating when launched at urban centers.
[03:15:05]
As medics tended to the wounded, producer Tim Lister checks in with our headquarters.
TIM LISTER, CNN CONTRIBUTOR: Extremely large detonations really, really close. We are going to stay in shelter.
PLEITGEN (voice-over): As we take cover, residents are clearly traumatized by the violence. It is terrifying, Natalia (ph) tells me. But what can we do?
The strikes came as search and rescue efforts were ongoing in exactly the same neighborhood after a Russian missile leveled an apartment block on Wednesday night, killing at least three and wounding eight. The Russians seem to be bringing the cities of this region into their war, regardless of the consequences.
And Russian president, Vladimir Putin, is saying there is worse to come. Putin spoke Thursday at events commemorating the Battle of Stalingrad, where Soviet forces defeated Nazi Germany 80 years ago, openly threatening the U.S and other countries support Ukraine.
VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translation): Clearly, they don't understand that modern war with Russia will be quite different for them, he said. We won't send our tanks to their borders, but we have the means to respond and it won't be with the use of armored vehicles.
Cities like Kramatorsk already know that the Kremlin is ready to escalate its war on Ukraine. Largely quiet just weeks ago, there now in the eye of the storm, as Russian forces seek to grind their way through Donetsk. When the coasts seemed clear, we left Kramatorsk.
(On camera): We're going to get out of here as fast as possible, just in case there's more missile strikes coming, but it certainly seems to us as though the Russians are making Kramatorsk a front line in this war.
(Voice-over): A grim prospect for the thousands of civilians here and in other towns in eastern Ukraine. Fred Pleitgen, CNN, Kramatorsk, Ukraine.
(END VIDEOTAPE)
BRUNHUBER: Sources tell CNN the U.S. will be sending the longer-range missiles to the Ukraine as part of a soon to be announced military aid package. The ground launched small diameter bomb, a guided missile with a range of 145 kilometers, will be part of a new $2.2 billion security package. The bombs will effectively double the range of weaponry, but it will not include long range missiles that Ukraine wants. Sources say the details could be announced as soon as Friday.
Leaders of the European Union are in Kyiv for a summit today, with Ukrainian president, Volodymyr Zelenskyy. The European Commission President Ursula von der Leyen says Russia must be held accountable in court for its, quote, "odious crimes in Ukraine."
She announced the EU will set up an international center in the Hague to prosecute the crimes of aggression. President Zelenskyy is demanding more punitive sanctions against Russia. CNN's Scott McLean is live in London. So, Scott, what is President Zelenskyy hoping to get out of this summit?
SCOTT MCLEAN, CNN CORRESPONDENT: Well of course he is hoping to get the E.U.'s continued support when it comes to weapons. He is also hoping to get a fast-track membership for Ukraine into the European Union, saying yesterday that he thinks that his country deserves to start negotiations on full membership this year.
Now, Ukraine has been a candidate state since last summer but in order to actually become a full-fledged member, there is a laundry list of conditions that it would have to meet. One of the biggest challenges for Ukraine is clamping down on corruption. And of course, in the fast few weeks we have seen evidence that Ukraine is trying to do that. It announced a series of investigations and sanctions and firings to try to clamp down on things like tax fraud, embezzlement, and the list goes on and on. But there is a lot more that it would need to do in order to shed its
reputation as one of the most corrupt countries in Europe. Now, an E.U. official said earlier this week that they wanted to make sure that they acknowledged the work that Ukraine had done, but they didn't come anywhere close to putting a timeline on how long it might actually take for them to gain membership into the block.
And consider the countries like North Macedonia, Serbia, Turkey, they've been waiting more than a decade to actually become full- fledged members with no signs that that is coming anytime soon. President Zelenskyy also called on the E.U. to ramp up sanctions. This is why.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translation): Now the price of sanctions has somehow slowed down in Europe, and the terrorist state on the contrary is adapting to the sanctions. We need to catch up, we need to correct this.
(END VIDEO CLIP)
MCLEAN: And despite the sanctions an IMF report predicted that the Russian economy would actually grow slightly this year. Ursula von der Leyen though insisted that sanctions were in fact having an impact. One of the things to mention quickly, Kim, and that is, that of course, Ukraine wants to keep up the pressure on western allies to deliver the weapons that it asked for.
[03:20:00]
And he got some good news, some welcome comments from the Polish prime minister yesterday who said that, "it's his view, it's his country's view that Ukraine should have fighter jets. Though he said that he would go along with whatever NATO allies decided. He said if he was making the decision unilaterally, that they would have them.
This is much further than we've heard the Dutch prime minister, the French president go on this topic. Obviously, the Germans, the Americans have said very plainly, no but just a month ago not a single country was willing to send tanks to Ukraine. Poland became the first to send them and then a few weeks later, suddenly there were 12 countries, more than 120 tanks on the way to Ukraine in a couple of months. So, perhaps, Ukraine can only hope that the same domino effect may happen here with fighter jets. Kim?
BRUNHUBER: Yeah, absolutely. All right, Scott McLean in London, thank you so much.
Well, the next six months will be, quote, "absolutely crucial in the war on Ukraine." That's according to an assessment by the CIA. Director Bill Burns says developments on the battlefield will be key with this Russian President Vladimir Putin isn't serious about negotiations. Burns says Putin believed he can grind down Ukraine while political support from Europe and the U.S. wanes. He says that calculation is just as flawed as Russia's decision to invade last February.
Pope Francis is wrapping up his visit to the Democratic Republic of Congo after a rousing reception in the central African nation. That (inaudible) next after the break.
Plus, tech giants report their fourth quarter earnings and it underlines worries about economic uncertainty, that is coming up.
(COMMERCIAL BREAK)
BRUNHUBER: In the next hour, Pope Francis will head to South Sudan. That comes after he bids farewell to the Democratic Republic of Congo where he got a warm reception. He's been meeting with a number of Catholic bishops who have helped drive democratic change in the country in recent years.
On Thursday evening, he held mass in Kinshasa and met with members of the clergy, religious women, and seminarians. And earlier in the day, he addressed a crowded city of 65,000 people. CNN's Larry Madowo has details.
LARRY MADOWO, CNN CORRESPONDENT: Pope Francis has been receiving a rock star welcome in the DRC since he got there Tuesday evening and he has been hitting the right notes, playing the greats hits, calling out exploitation, corruption, praying for peace. One of the standup moments he's got had to be his Thursday meeting with catechists and young people where he told them not to be manipulated, but also got the entire group to shout no to corruption.
POPE FRANCIS, (through translation): All say it. No to corruption.
[03:25:00]
A papal visit is a big deal, anywhere but in a country where about half the population identifies as catholic it's extra important, and I think that's not been lost on the Pope or the people.
UNKNOWN (through translation): I am very, very, very moved to have a pope in our country after 38 years. My joy is immense.
UNKNOWN (through translation): We hope that his visit to Congo will bring peace. We have this hope.
MADOWO: The pope's message to the young people was to watch out for people who would use them to keep the DRC and the vice grip of instability and violence, and encourage them to reimagine a peaceful future for the DRC.
And I think what this trip has accomplished, two things. One, shine global attention on the conflicts in the DRC, but two, he's given the people of the DRC a lot to think about in the weeks and months ahead. Larry Madowo, CNN, Nairobi.
BRUNHUBER: Israel and Sudan have finalized the text of a peace agreement that is going to Israel's foreign minister. The agreement is expected to be signed later this year in Washington after the transfer of power in Sudan to a civilian government. Sudan was part of the original Abraham Accords, normalizing Israeli relations with the UAE, Bahrain, and Morocco. But the military coup in Sudan in 2021 stalled the final steps of the process with (inaudible).
Amid escalating violence between Israel and Palestinians, Israeli Prime Minister Benjamin Netanyahu was in Paris on Thursday meeting with French President Emmanuel Macron. A statement from the Elysee Palace said Macron expressed his availability to help restart dialogue between Israel and the Palestinians.
The two leaders also reportedly discussed Iran's nuclear program, Macron warning of consequences if Iran continues its reckless behavior. Israel has long insisted Iran is seeking a nuclear weapon after Iran says its nuclear program is only for energy generation.
Russian troops may be gone, but life is anything but normal in the Ukrainian city of Kherson.
(VIDEO PLAYING)
Still ahead, how the city's residents keep ongoing within earshot of Russian artillery strikes. Stay with us.
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BRUNHUBER: Welcome back. I'm Kim Brunhuber. This is "CNN Newsroom." Let's get you caught up with the latest developments in Ukraine. Top E.U. leaders are in Kyiv right now for the first time with Ukraine since Russia's invasion began. They're expected to discuss the progress towards joining the E.U. as well as further European support for Kyiv.
[03:30:00]
Meanwhile, Ukraine is reportedly set to receive new missiles that will effectively double the striking range of its military. It will hit targets from more than 140 kilometers. U.S. officials say they are part of a new security package that Washington will announce in the coming days.
The E.U. has made it clear that rooting out corruption is key to Ukraine's integration into the group. Kyiv launched a series of anti- corruption raids this week, targeting current and former political leaders and former business executives.
Earlier, I spoke with Vladimir Shulmeister, a lecturer at the Kyiv School of Economics, and I asked him how widespread corruption is during the war. Have a listen.
(BEGIN VIDEO CLIP)
VLADIMIR SHULMEISTER, LECTURER, KYIV SCHOOL OF ECONOMICS: I was talking with various representatives of the countries which were used to be historically in Soviet bloc and also historically from the Soviet time. I think that it originates from there. It became part of the culture of these countries. And unfortunately, there are different levels of corruption that is by far higher than average in the European Union.
BRUNHUBER: Hmm.
SHULMEISTER: To fight that, and I was talking to Mr. Zelenskyy about that four years ago before he became president, that he is -- I actually had no doubts that he would be president, would be elected president. I told him that it is wonderful moment for him to change this situation in Ukraine dramatically, and he had all the possibilities to do that.
Unfortunately, it is happening only now. And what we see now is only, let's say a nice picture with searches, with investigations. These should go further to change the situation dramatically.
People -- Ukrainians -- I'm really surprised that this situation happens also during the war and that this corruption level is very high. And I was really -- I was really hoping that corruption would stop during the war, when people are dying in the war. Ukrainians are fighting for their freedom and the corruption goes on.
(END VIDEO CLIP)
BRUNHUBER: Shulmeister also said corruption is rampant in Russia as well, and the country that beats corruption first will most likely win the war.
Now, on the front lines, a major city liberated from Russia's ground forces isn't getting a break from its artillery. Shells and rockets keep raining down on the city of Kherson, which is only separated by a river from Russian positions.
Sam Kiley has a firsthand look into the life under the constant threat of artillery attacks.
(BEGIN VIDEOTAPE)
CROWD: (SPEAKING IN FOREIGN LANGUAGE).
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Twelve weeks ago, Ukrainians celebrated the liberation of Kherson from months of Russian occupation.
(CROWD CHANTING)
(SOUND OF BOMBARMENT)
KILEY (voice-over): This is the scene today.
(On camera): The Russians continuing to fire with direct fire from tanks across the river, which is just a few hundred meters in that direction. And on top of that, locals are telling us that it's being regularly shelled with grads. The multiple rocket launching system completely indiscriminate.
(SOUND OF BOMBARMENT) (Voice-over): Homes have been blown up. Hospitals torn by high explosives in weeks of an ever-intensifying bombardment. Local authorities here talk of scores of artillery attacks from Russian positions just across the Dnipro River every day. Firefighters and emergency workers keep their base location secret. They're prime targets for Russia's guns.
(SOUND OF BOMBARMENT)
KILEY (voice-over): Two people were killed around the city overnight.
(SOUND OF BOMBARMENT)
KILEY (voice-over): A missile landed very close to here recently, adding urgency to this food distribution to people who are still here because they're trapped by poverty.
Grad rockets flew in during the day. At half past three, right here, our guard was standing there. The guard got hit, they said.
(SOUND OF BOMBARMENT)
KILEY (on camera): Why do you think the Russians are doing this?
(Voice-over): Revenge, probably, she said. Probably, revenge because they ran away.
This underpass is a brief refuge taken by desperate civilian seeking help and food.
Most of the houses are destroyed, he said. People are staying without electricity, water and gas. And there is constant shelling. We're on the contact line. We live near the bridge. Anatoli (ph) will take what help he can get from local government.
[03:34:56]
KILEY (voice-over): A Russian strike against city hall five days ago means that this plastic sheeting can be put to better use.
What are you going to do with that?
I'll board up the windows. The windows are out, no glass.
He'll have to walk home. No one will drive to his neighborhood. It looks out across the river, at the Russians.
Sam Kiley, CNN, in Kherson.
(END VIDEOTAPE)
BRUNHUBER: China will fully reopen its border with Hong Kong and Macau starting on Monday. People entering mainland China from either region will no longer need to show a negative COVID test unless they have traveled abroad in the past seven days. China is also lifting (INAUDIBLE) on the number of travelers from both regions. People heading to Hong Kong will no longer have to show proof of vaccination. And Macau is ending its requirement for negative COVID test results.
Shares of a company headed by an Indian billionaire, Gautam Adani, plunged even further. This fallout (ph) continues over allegations of fraud and stock manipulation. We'll have a live report from New Delhi when we come back. Please stay with us.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
(APPLAUSE)
BRUNHUBER: Some tech giants reported earnings Thursday that disappointed Wall Street. Apple closed its first revenue decline since 2019 with sales falling 5% of the final three months of last year, significantly worse than analysts have predicted. Shares of Apple fell more than 4% in afterhours trading.
Google parent, Alphabet, reported its profits fell by a third in Q4 along with nearly flat revenue growth. Alphabet shares also dropped about 4% immediately following that report.
And despite beating estimates with 9% increase in revenue, Amazon stock fell nearly 5% after the company reported slower growth in certain closely-watched segments.
Europe's two largest central banks raised interest rates sharply on Thursday, opting for bigger increases than the U.S. Federal Reserve. The Bank of England and the European Central Bank hiked rates by half a percentage point. Benchmark rates for both are at the highest levels since 2008.
Across the Atlantic, the Federal Reserve eased up on rate hikes Wednesday, delivering just a quarter-point increase, saying it is making progress against inflation. But the banking chiefs of the E.U. and U.K. say they are still a way to go. Listen to this.
(BEGIN VIDEO CLIP)
CHRISTINE LAGARDE, PRESIDENT, EUROPEAN CENTRAL BANK: This is the highest in all time that core inflation has been in our part of the world. So, I get it, headline inflation has gone down and more so than we had expected and that many had expected, but underlying inflation pressure is there.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
ANDREW BAILEY, GOVERNOR, BANK OF ENGLAND: We have done a lot already.
[03:39:59] BAILEY: The full effect of that is still to come through. But it is too soon to declare a victory just yet. Inflationary pressures are still there. We can see that in the data. We hear it from our agents. We need to be absolutely sure that we really are turning the corner on inflation. That's why we increased bank rates today and that is why we will, of course, continue to monitor the data very carefully.
(END VIDEO CLIP)
BRUNHUBER: The European Central Bank says it expects to raise interest rates further by another half a percentage point in March.
The financial meltdown continues for Indian businessman Gautam Adani, who has now lost his status as Asia's richest man. Shares in Adani's flagship firm are down over 15% today as it grapples with the fallout from a report from an American research company accusing it of fraud.
Joining me now from New Delhi is CNN Vedika Sud. Vedika, it's a fascinating story here. Take us through it.
VEDIKA SUD, CNN REPORTER: Fascinating indeed, Kim, and here is why. So, Gautam Adani, who was until a few days ago the richest Asian, is no longer holding that position. In fact, he was in league with Jeff Bezos and Elon Musk until about Monday last week, just a day before the Hindenburg report was out.
And today, about nine days later, he is not even in the top 10 wealthiest persons in the world. He is ranked number 23, according to Bloomberg. That is the net worth for that you've seen after that U.S. firm, research firm, accused the Adani group of fraud. Here is all you want to know about the controversy and the man in the midst of it.
(BEGIN VIDEOTAPE)
UNKNOWN: Sustainability for tomorrow.
SUD (voice-over): Protest by opposition lawmakers in India's parliament on Wednesday highlighted concerns of the finances of an Indian billionaire.
On the same day, his conglomerate, Adani Enterprises, called off its $2.5 billion share sale after a significant drop in share price.
GAUTAM ADANI, CHAIRPERSON, ADANI GROUP: For me, the interest of my investor is paramount and everything is secondary.
SUD (voice-over): Even a statement from the low-profile businessman, Gautam Adani, wasn't enough to calm India's stock market. It all started after U.S. research firm (INAUDIBLE) accused his business of fraud and stock manipulation.
The Adani Group has denounced the allegations as baseless and militias. It called the report a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India. The Adani Group founded about 30 years ago controls power stations, ports, and airports with huge stakes in the energy and logistics sector. It has long been linked to the wider success of India.
TIM BUCKLEY, DIRECTOR, CLIMATE ENERGY FINANCE: The Indian economy has been growing as one of the fastest-growing and emerging markets in the world for a decade now, and that profound success story in India has certainly been a cornerstone of the Adani Group because they are investing in infrastructure in India.
SUD (voice-over): This decent growth has often been flagged by detractors. Adani is seen as a close ally of Indian Prime Minister Narendra Modi. Critics say that Adani's rise rested heavy on crony capitalism, which Adani has repeatedly dismissed.
ADANI: Prime Minister Modi and myself both have come in from state of (INAUDIBLE) and that makes -- makes me the easy target of such business allegations.
SUD (voice-over): (INAUDIBLE) cautioned that the fallout of the report by Hindenburg Research not only poses a risk to the Adani Group but the Indian economy.
HEMINDRA HAZARI, INDEPENDENT BANKING AND ECONOMIC ANALYST: In the normal case of events, the regulator would've stepped in and announced an investigation. But sadly, in this case, the regulator for the public has chosen to remain silent.
SUD (voice-over): The immediate impact has been obvious. More than $100 billion wiped off the value of his business empire. The wider challenge now for India's market regulator and the Modi government will be to try and cap the market chaos and regain the trust of nervous investors.
(END VIDEOTAPE)
SUD: For three consecutive days in parliament, Kim, opposition lawmakers have been protesting disrupting parliament and demanding a statement from the Modi government. They've also been demanding an independent probe into the accusations leveled by the Hindenburg firm.
Now, what was interesting here, and I'm going to leave with you with this, Kim, is that the day before the report was out, Adani's net worth was $120 billion.
[03:45:04]
SUD: Today, according to Bloomberg billionaire index, it stands at about $61 billion. Kim?
BRUNHUBER: Big loss but still hardly poor. Vedika Sud, thanks so much for this. I appreciate it.
Well, at the, moment thousands of years in the making. Coming up, why scientist say a green comet passing over the Earth is so significant. Stay with us. (COMMERCIAL BREAK)
BRUNHUBER: Stargazers have gotten a rare treat, a comet not seen from Earth in more than 50, 000 years, the Green Hue. The visitor shown here over Stonehenge in England was lost visible during the Stone Age. It's orbit around the sun takes it furthest reaches of the solar system which is why it has taken so long to swing by again, when it just completed its closest approach to our planet, about 42 million kilometers away.
For more on this, we're joined by astronomer, Laurence O'Rourke, a senior systems engineer at the European Space Agency and he is in Madrid. Thank you so much for being here with us. So, 50,000 years ago when the comet was last seen and the sky, mammoth and saber toothed cats and Neanderthals might have looked up and seen it. Now, 50,000 years later, you are among those who saw it. So, describe what you saw.
LAURENCE O'ROURKE, SENIOR SYSTEMS ENGINEER, EUROPEAN SPACE AGENCY: Yeah. I mean, 50,000 years ago, we don't have the light pollution, which we have these days, with all the lights from the city and those days we would have seen it very, very clearly. But if you really want to see it, you have to be in an area which -- with no background light.
What I have seen -- I mean, I saw it a number of number of nights ago, it's very much a diffused cloud of small whitish cloud which -- it is quite beautiful when you look through the telescope or either you can see it through binoculars or even -- in the last few nights, you can even see it with the naked eyes.
BRUNHUBER: Now -- so, you describe it there as whitish but, of course, as you all know and from the pictures we are showing here close up, it looks more green. So, why is that?
O'ROURKE: Yeah, it's -- I mean it really -- it comes from what comets are made of. Comets are really just a ball of ice and dust, and the ice has many different types of ice as well as there are different types gases, which are -- which formed the ice. And so, comets are just ball of ice and dust as it gets closer to the sun, it heats up and the ice sublimes because there's no liquid in space, it changes from ice to gas.
And so, what you have around the comment is gas and you see dust. And one of these gasses in fact is like dicarbon. It's C2. So, just like water, it's known as H2O, you got two hydrogens. This case, we're dealing with two carbons. The discus (ph) and the -- is illuminated by the sun. Effectively, you get fluorescence. And so, the photons from light actually released green photons. And so, it's quite beautiful. And so, of course, while I said it was white when I was looking at it, of course, it's -- as you look and if you're using cameras, you can really see it as green.
BRUNHUBER: So, of course, it's fascinating whenever we get a visitor from outer space, but why is this comment particularly generating so much interest? O'ROURKE: I think it's because it is coming so close to the Earth. It's -- a lot of the comments we see are very, very far away. They passed by the sun, but they're very difficult to spot. And the fact that you can -- excuse me -- you can see this with the naked eye the last two nights, it's quite extraordinary.
[03:50:08]
I think one other aspect which makes it very special is from where it originates from. It's coming -- it has such a long orbit, 50,000 years is a long time. This is because it originates from Oort cloud, which is a huge cloud of billions of comets from the outside -- excuse me -- and the outside of our solar system.
And so, it's very much originates from. And because it comes from there, it hasn't experienced much of the sun. And so, a lot of its properties from when it was formed are still there and this makes it very interesting because there you're seeing something which still has its original properties when it's formed and this is very interesting for science.
BRUNHUBER: Yeah. So, it sort of leftover debris from the origin of our solar system, I guess, it's like a frozen time capsule. So, what exactly do you think we can learn from it?
O'ROURKE: I mean, the water that on our planet, on planet Earth, originated from the -- from space. And we believe it originated from comets and asteroids. The gases, which we have, which we are breathing, also a small -- a lot of would have come from comments. And so, understanding what these time capsules contain confirms a lot of our theories that we got -- it originated from comets. So, it helps us understand where we come from, and (inaudible) are we going.
BRUNHUBER: Now, in the future, there will be an opportunity presumably to learn a lot more from comets like this. I mean, you are involved with Rosetta, the first spacecraft to orbit a comet, which was able to land a probe on its surface. I mean, it is a shame we won't to be able to do the same thing with this comet, with the interceptor, but talk us through what we will be able to do in the future if we get another visitor like this?
O'ROURKE: Well, indeed, I mean, the European Space Agency is planning to launch in 2029 a mission called Comet Interceptor, which is intended to fly out into an area space which is there, for example, James Webb telescope, is (inaudible) located and we leave it there exactly in waiting mode, waiting until a comet just like this one, because this really is a perfect candidate. It's Oort cloud. It's coming from this location, very, very far away. It's clean. It hasn't changed by much from the sun.
And so, when we launch, we will be waiting in space and waiting to identify a comet like this. At that point, we fire the thrusters and we effectively try to pass that comet as close as possible, take images. We have two different virtual robots (inaudible) really at the time. And so, it's -- the future is quite bright when it comes to commentary reflect (ph) using spacecraft or the comet interceptor is going to change our view (inaudible).
BRUNHUBER: Well, we will have to wait another 50,000 years to see this comet, who knows who will be watching that and how, but we appreciate your insights on this occurrence, Laurence O'Rourke. Thank you so much for being here with is.
O'ROURKE: My pleasure.
BRUNHUBER: I appreciate it.
O'ROURKE: Thank you for having me. Bye-bye.
BRUNHUBER: Well, assault charges have been dropped against one of Australia's top tennis stars according to Australian affiliate network, 9News. Nick Kyrgios had pleaded guilty in a court in Canberra to shoving his girlfriend during an argument in 2021. The magistrate rejected the bid to dismiss the charge on mental health grounds. Instead, the court found the charge was at a low level of seriousness, and let him go because he was not at risk of re-offending.
Well, just one NFL legend Tom Brady thought he was out of the game. New England Patriots' owner, Robert Kraft wants to pull him back in, at least symbolically. Brady announced his retirement after 23 seasons on Wednesday, this time for good, he says. He briefly retired, of course, last, year before returning to the Tampa Bay Buccaneers for one more season. He spent the vast majority of his career with New England Patriots, winning six of his record seven Super Bowls with the team. Kraft says he wants Brady to sign a one-day contract to officially retire as a patriot. Here he is.
(BEGIN VIDEO CLIP)
ROBERT KRAFT, NEW ENGLAND PATRIOTS OWNER: Not only do I want it, our fans are clamoring for it. And to us, he has always has been, and always will be a Patriot. We will do everything in our power to bring him back, have him sign off as a Patriot, and find ways to honor him for many years to come.
(END VIDEO CLIP)
BRUNHUBER: Super Bowl 57 is a bit more than a week away. And for the first time in the U.S. pro football history, black quarterbacks will be leading both teams. Two players, Jalen Hurts of the Philadelphia Eagles and Patrick Mahomes of the Kansas City Chiefs noted the importance of the moment. Here they are.
(BEGIN VIDEO CLIP)
PATRICK MAHOMES, KANSAS CITY CHIEFS QUARTERBACK: Yeah, I mean, to be on the world stage, and have two black quarterbacks start in the Super Bowl, I think it's special. And I've learned more and more about the history of the black quarterbacks since I've been in this league, and the guys that came before me, and Jalen set the stage for this.
[03:55:06]
And now, I'm just glad we can set the stage for guys that are -- kids who are coming up now.
JALEN HURTS, PHILADELPHIA EAGLES QUARTERBACK: Yeah, I think it is history. I think it is nice worthy being noted and it is history. You know, it has come a long way. I think there's only been seven African American quarterbacks who played in the Super Bowl. So, to be the first for some reason is pretty cool. So, I know it will be a good one.
(END VIDEO CLIP)
BRUNHUBER: The Eagles and Chiefs kickoff on Sunday, February 12th in Glendale, Arizona for the U.S. Football championship.
Well, first generation iPhone that is still sealed in his original box could dial in big numbers at auction. The device is an obsolete relic by today standards, but too savvy investors it is bangle (ph) piece of history. Originally costing around $600 when it came out in 2007, another just like it recently sold for around 40 grand. The owner of this device says she is hopeful it might fetch as much as $50,000. The bidding opens on Thursday and ends on February 19th.
One of Italy's most wanted mob bosses has been arrested and friends working as a pizza maker. Edgardo Greco was convicted in absentia for the murder of two brothers in the 90s, and had been on the run for 16 years after escaping police custody in Italy under his new identity. Greco was even featured in a local French newspaper as an authentic Italian pizza maker. The 63-year-old will likely be extradited to Italy.
All right, that wraps this hour of "CNN Newsroom." I'm Kim Brunhuber. We continue with Bianca Nobilo after a after a quick break. Please do stay with us.
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