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Azerbaijan Takes Over Armenian Enclave; Iran Approves Penalties For Hijab Violations; Zelenskyy To Meet With Biden At The White House; US Fed Keeps Interest Rates Steady; Mexican Freight Trains Used By Migrants Fleeing To US Halted. Aired 2-3a ET

Aired September 21, 2023 - 02:00   ET

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

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[02:00:37]

ANNA COREN, CNN CORRESPONDENT: Hello and welcome. I'm Anna Coren in Hong Kong. Ahead on CNN NEWSROOM. Ukrainian President Zelenskyy takes his plea for weapons and cash to D.C. and the White House is expected to deliver.

Armenia concedes control a very disputed region with Azerbaijan after a military operation overwhelms the enclave and ethnic Armenians living there.

And Iran doubles down on its strict dress code, passing a bill with harsh punishments for women who failed to wear hijabs.

We begin with a day of important meetings for Ukrainian President Volodymyr Zelenskyy. He's scheduled to speak with members of the U.S. Congress in the coming hours, followed by a White House meeting with President Joe Biden. The administration is planning to announce a new aid package for Ukraine, including artillery, anti-armor, anti- aircraft and other defensive capabilities.

The White House says Mr. Biden is looking to hear a battlefield perspective from the Ukrainian leader. But we'll also assure him, the U.S. will support cave for as long as it takes. Mr. Zelenskyy spoke about his country's needs to CBS News.

(BEGIN VIDEO CLIP)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voiceover): We're defending the values of the whole world, he says, and the Ukrainian people are paying the highest price. We are truly fighting for our freedom. We are dying.

(END VIDEO CLIP)

COLEY: Long-range army tactical missiles systems known as attack EMS probably won't be included in the new aid package. But Spokesperson John Kirby says they're not off the table and discussions are ongoing.

While in New York, Mr. Zelenskyy addressed the United Nations Security Council for the very first time in person. And he called out the elephant in the room accounts all that's been deadlocked since the war began simply because Russia is a permanent member with veto power. Mr. Zelenskyy says there is a solution for that.

(BEGIN VIDEO CLIP)

ZELENSKYY (through translator): In cases of mass atrocities against human rights, veto power should be voluntarily suspended. But we can also observe that Russia will not give up this stolen privilege voluntarily. Therefore, the U.N. General Assembly should be given a real power to overcome the veto. This will be the first necessary step and it is impossible to stop the war because all efforts are vetoed by the aggressor.

(END VIDEO CLIP)

COHEN: Mr. Zelenskyy spent his final night in New York meeting with Wall Street CEOs and business leaders. He's hoping to line up support for efforts to eventually rebuild Ukraine and its economy. Billionaire Michael Bloomberg, businessman Robert Kraft, and former U.S. Secretary of State Henry Kissinger were reportedly in attendance.

Mr. Zelenskyy could have a tougher time with members of Congress, as many Republicans are calling for cuts to U.S. support. The GOP leaders of the House and Senate are outlining very different approaches.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R-KY): Tomorrow, I'll join colleagues in welcoming President Zelenskyy to the Capitol. I'll continue to make the case myself or strange support of Ukrainian calls out of charity but our primary focus on Americans' interests.

REP. KEVIN MCCARTHY (R-CA): Is Zelenskyy elected to Congress? Is he our president? I don't think I have to commit again. I have questions for him. Where's the accountability on the money we already spent? What is the plan for victory?

(END VIDEO CLIP)

COHEN: Poland's Prime Minister says Warsaw will no longer transfer weapons to Ukraine and will focus instead on its own defense needs. But it comes as Poland and Ukraine are at loggerheads over another issue. Poland has issued a ban on Ukrainian grain imports, hoping to protect its own farmers. It could be a sign that support maybe withering for Ukraine and its fight against Russia.

European Council President Charles Michell says the E.U. won't let that happen.

(BEGIN VIDEO CLIP)

CHARLES MICHEL, EUROPEAN COUNCIL PRESIDENT: You intend to support Ukraine for as long as it takes. Ukraine is a crime scene and there is a criminal and it's extremely important to make sure that indeed no impunity. (END VIDEO CLIP)

[02:05:02]

COHEN: Meanwhile, Russia carried out deadly strikes and cities across Ukraine overnight. At least two people were killed and five others wounded in the southern city of Kherson. Officials there called it a terrible night of shelling on residential areas.

In the northeastern city of Kharkiv, officials warn residents to stay in shelters due to heavy Russian shelling.

And earlier Thursday, air-raid sirens and explosions sounded in the capital Kyiv. Officials say the city's air defense system intercepted a number of Russian missiles. At least seven people were wounded in the attack.

U.S. President Joe Biden is working to improve relations with Israel inviting Prime Minister Benjamin Netanyahu to Washington later this year. They met on the sidelines of the U.N. General Assembly for the first time since Mr. Netanyahu returned to office in December. Well, CNN's Hadas Gold has this report.

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HADAS GOLD, CNN JERUSALEM CORRESPONDENT: After nine long months, the Israeli Prime Minister Benjamin Netanyahu finally got his face-to-face meeting with President Joe Biden not in the White House like he would have hoped instead on the sidelines of the U.N. General Assembly in New York. Regardless, the meeting went about as well as he could have hoped. The two used each other's first names, they're very complimentary.

And while they both acknowledge that there have been issues between them that has soured the relationship, namely, Netanyahu's government who say to reshape Israel street Supreme Court. It seems the prospect of normalization between Israel in Saudi Arabia is keeping things float.

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BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL: Under your leadership, Mr. President, we can forge a historic peace between Israel and Saudi Arabia. And I think such a piece would go a long way, first, to advance the end of the Arab-Israeli conflict, achieve reconciliation between the Islamic world and the Jewish state and advance a genuine peace between Israel and the Palestinians.

(END VIDEO CLIP)

But there are huge gaps to bridge before that can happen, including what the Palestinians will be offered as part of this deal. And whether whatever they are offered will even pass muster in Netanyahu's far right-wing government that includes ministers who say they don't even think the Palestinian authority should exist. And even though it only got sort of a passing mention in public, the concerns over the digital overhaul were loud and clear.

Protesters on the street demonstrating against Netanyahu's government could be heard from inside the hotel where the meeting was taking place. That's according to Israeli reporters who were there. And though President Biden addressed what he called the heart issues of upholding democratic values, including checks and balances in the systems. He stressed that even where they have some differences that his commitment to Israel is ironclad.

Hadas Gold, CNN, Jerusalem.

(END VIDEO CLIP)

COHEN: Well, joining me now is Aaron David Miller. A former State Department Middle East negotiator. He's also a senior fellow at the Carnegie Endowment for International Peace. Great to have you with us. Tell me, what did you make of the meeting between Biden and Netanyahu the first since the Israeli Prime Minister returned to power?

AARON DAVID MILLER, FORMER U.S. STATE DEPARTMENT MIDDLE EAST NEGOTIATOR: Yes. It's great to be here with you. And look, I think the meeting turned out predictably where I thought it might. The prime minister -- one of the few Prime Ministers not to see an American President, the White House during his first term clearly is at odds with the U.S. president both on the issue of the judicial overhaul in Israel and Israeli policies toward the West Bank.

I guess I would describe the meeting is managed tensions. Whatever their differences were, I think they -- they're clear but they managed, I think, to handle them. There's also a talk in fact, the President, I think, extended an invitation for the Prime Minister to come to Washington by the year's end. I think that'll depend on the state of the judicial overhaul and progress or lack thereof toward an Israeli starting normalization deal.

COHEN: I wanted to ask, Aaron, you know, behind the smiles and pleasantries, is there respect between these two leaders or do they simply not like each other? And how does that affect the U.S.-Israel relationship?

MILLER: Really good question. You know, Biden's known Netanyahu for decades. But I think the President now understands he's not dealing with the Netanyahu that he thought he knew. Netanyahu was an old, was risk averse, cautious, careful reader of Israeli public opinion. One step forward, tough-minded, uncertain issues, two steps backward. Now you have a Netanyahu that's very risk ready.

He's locked himself into a coalition with most extreme fundamentalist government in the history of the state of Israel pursuing judicial -- a judicial coup really, and policies on the west bank that are essentially directed at annexation and everything else by name. And I think that's frustrating for the President.

[02:10:03]

I think it's annoying. I think there is a -- some degree of an absence of trust and confidence that might have existed in a -- in a more functional form before. So, I think Biden understands he gets it. He's dealing with a different Netanyahu. And again, he's treading the -- navigating the fine line between not embracing him as he might. On one hand, but maintaining a functional relationship because I think Biden understands there's business to do, business in the Middle East, Iran, managing Iran and trying to get to an Israeli starting normalization agreement.

COHEN: Well, you speak about the business that needs to be done and Biden needs Netanyahu for the Iran nuclear deal and the normalization of Israel-Saudi relations. I mean, do you see any progress on those issues anytime soon? Considering what is happening domestically within Israel?

MILLER: It's hard to say on the judicial overhaul, the judicial Coolidge Supreme Court heard arguments, they'll rule probably several months from now. Maybe not until January. On the other issue, Israeli policy toward the West Bank, I think there's very little chance of a much progress. The key I think, for Biden right now is whether or not he can figure out a way to reach a triangular agreement between Biden, Mohammed bin Salman aka MBS.

The -- at some point would be King of Saudi Arabia and Israel. And I think that's a challenge for the President because we're being asked to do a lot of very tough lifts by the Saudis. The administration is going to want to go beyond the U.S.-Saudi accord to get something for the Palestinians. And that's going to be tough for this --for this Israeli government. I think there's a better than even chance that at some point, perhaps even before the years out or early next, will -- we really may see progress toward this.

I'm wary though of the enterprise. We're dealing with two very problematic partners. We're asking a lot of the United States, most extreme fun ones government in the history of the state of Israel and a repressive, oppressive Saudi Crown Prince who frankly is not interested in only having a singular relationship with the United States. He's broadened his relations with Russia and China.

And he's asking the United States for heavy lift. So, I think we need to get something in return both from the Saudis and from the Israelis if we're going ot go through with this deal.

COHEN: Aaron David Miller, always fascinating to speak to you. Thank you so much for your time.

MILLER: All right. And thanks for having me.

COHEN: For the first time in decades, Azerbaijan is claiming control of the disputed region of Nagorno-Karabakh which is majority ethnic Armenian. On Wednesday, arm separatists in the breakaway enclave accepted a ceasefire with Azerbaijan and agreed to lay down their arms. Talks aimed at integrating the territory into Azerbaijan are set to begin Thursday. The dramatic turn of events came after an overwhelming offensive by Azerbaijan's military on Tuesday.

Local authorities report at least 200 deaths and hundreds more injured in the operation, which lasted about 24 hours. For more, here's CNN's Nic Robertson in London.

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NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voiceover): Casualties from Azerbaijan's deadly artillery assault rushed to a hospital in the majority Armenian enclave of Nagorno Karabakh. The Armenian death toll growing as the historic foes fragile peace explodes into dangerous warfare with potentially disastrous consequences.

JENS STOLTENBERG, NATO SECRETARY GENERAL: We are concerned and it is important that both parties now deescalate.

ROBERTSON (voiceover): A ceasefire agreed Wednesday, but they've been here before two wars in the past 30 years over the disputed region. But in June, Azerbaijan began blocking the strategic latching corridor. The only link between Armenia proper and the 120,000 people living in the enclave. Internationally recognized as part of Azerbaijan humanitarian aid convoys were denied access.

Russian peacekeepers couldn't or wouldn't get them through. Food and fuel on the enclave were in short supply.

LUIS GABRIEL MORENO OCAMPO, FORMER PROSECUTOR OF THE INTERNATIONAL CRIMINAL COURT: Blocking the Lachin Corridor.

ROBERTSON (voiceover): Respected international lawyer, Luis Moreno Ocampo wrote a legal opinion calling the blockade genocide. Azerbaijan disputes his analysis.

[02:15:05]

And in recent weeks, Armenians claimed Azerbaijani forces were amassing weapons readying for a new offensive. Tuesday their fears of attack were realized. The enclave's de facto capital, Stepanakert echoing to gun an artillery fire. Frightened women and children cowering in the street.

UNIDENTIFIED FEMALE (through translator): You don't know how to live in such a situation. How to raise your children when you constantly live in stress tension and no one wants to help you.

ROBERTSON (voiceover): Civilian homes smashed as Azerbaijani officials claim they've launched an offensive against terrorists demanded the Armenian army leave and the Nagorno-Karabakh government disband and depart. Armenia denies it's the aggressor.

E.U. politicians while calling for calm, also calling out Russia's peacekeepers in action. An Azerbaijan's intransigence.

(END VIDEO CLIP)

ROBERTSON (on camera): The fear for many Armenians is that Azerbaijan's terms for the ceasefire will be so tough. They will feel forced to leave Nagorno-Karabakh and that they say, would be ethnic cleansing. Nic Robertson, CNN, London.

COHEN: India is urging its citizens in Canada to be careful without providing any evidence. India's External Affairs Ministry warned they could face anti India sentiment and politically condoned hate crimes. Well, this comes just days after the Canadian Prime Minister accused the Indian government of possibly playing a role in the assassination of Sikh leader in Canada. Well, CNN's Paula Hancocks picks up the story.

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PAULA HANCOCKS, CNN CORRESPONDENT (voiceover): It was Father's Day this past June when Hardeep Singh Nijjar left the temple he led got into his truck and called home to say he'd be there soon for a family dinner. But within minutes, Canadian police say Nijjar was shot several times and lay bleeding in his driver's seat. By any measure, a gruesome killing. Carried out on the streets of Surrey British Columbia, in the heart of the Sikh community.

Police say at least two masked men described as heavier set fled on foot and then into a silver Toyota. They were last spotted blocks away from the temple. And there hasn't been a trace of them since. Canada has now implicated India in this killing and that has led to more fear in this community. More questions about police protection here, given authorities warn Najjir his life was threatened.

His son says the community has a message for Prime Minister Justin Trudeau.

BALRAJ NIJJAR, HARDEEP SINGH NIJJAR'S SON: Sikhs all around the world believe this is not the end. We expect more from you.

HANCOCKS (voiceover): Many are asking why this crime has yet to be solved and want more evidence to be made public. Jagmeet Singh is the leader of the new democratic opposition party and a member of the Sikh community. And he has received an intelligence briefing on the evidence.

JAGMEET SINGH, CANADIAN OPPOSITION LEADER: I received the briefing that outlined some of the what information we have and I trust the work of our security forces. These are very, very serious intelligence reports that have come forward and now requires a serious response.

HANCOCKS (on camera): Despite Canada's allegations, it has had little influence on the Indian government. Those countries have traded travel advisories, diplomatic expulsions, but neither the murder case nor this political issue is any closer to being resolved.

UJJAL DOSANJH, FORMER MINISTER OF HEALTH OF CANADA: If you know -- if you know India made it happen, then you must know who pulled the trigger. If you know who pulled the trigger. Who are they? Why are they not arrested?

HANCOCKS (voiceover): Ujjal Dosanjh is a former Premier of British Columbia and former federal cabinet minister. He says Canada needs to disclose more evidence, because without it, he says, this incident could set relations back decades.

DOSANJH: Government of India rightly distrust Mr. Trudeau. And Mr. Trudeau, obviously, you know, talks about freedom of expression. But I think separatists in this country have gone beyond exercising the freedom of expression.

HANCOCKS (voiceover): Canada's allies seem to be sticking firmly on the sidelines of this conflict. The Biden administration says India should fully cooperate with the investigation but adds India is a vitally important ally. To that end, India and the United States are sponsoring a military conference in India next week. And an Indian military commander says Canada is set to be there too.

Paula Newton, CNN, Ottawa.

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COHEN: Still to come. Humanity how has opened the gates of hell.

[02:20:02]

That's the message the U.N. had a walk out of the world climate summit on Wednesday. We'll have more on the fiery rebuke.

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COHEN: Welcome back. The U.N. Secretary General sent a clear message during a global climate summit on Wednesday. We are headed towards a dangerous and unstable world. Antonio Gutierres implored countries to commit to net zero emissions by the year 2050 or even earlier. He also scolded some of the world's biggest polluters for going against their commitments by expanding fossil fuel use.

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ANTONIO GUTIERRES, UNITED NATIONS SECRETARY-GENERAL: Humanity has open the gates of hell. Horrendous heat is having horrendous effects. These trucks farmers watching crops carried away by floods. Sweltering temperatures, spawning disease, and thousands fleeing in fear as historic fires rage.

(END VIDEO CLIP)

COHEN: The list of speakers at the summit was restricted to a select group of member states the U.N. deemed to have clear and effective plans to address climate change. Notably absent from that list with the United States, China and India.

The U.K. didn't make the speaker's list either. Instead of Prime Minister Rishi Sunak was in London announcing a series of delays to key climate targets, which critics consider a sharp turn from the U.K.'s former stance on the issue.

CNN's Anna Stewart has the details.

ANNA STEWART, CNN REPORTER: The Prime Minister said he wasn't watering down the U.K.'s climate targets but the U.K. still planning to reach net zero by 2050. He has however, watered down some climate policies that were introduced by a previous government. In fact, a government that he was in. He was the finance minister. He says both labor and conservative governments have failed to be honest with the public about the cost of climate policy.

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RISHI SUNAK, PRIME MINISTER OF BRITAIN: No one in Westminster politics has yet had the courage to look people in the eye and explain what's really involved. That's wrong, and it changes now.

(END VIDEO CLIP)

STEWART: The biggest change is to a ban on buying new petrol or diesel cars, that has now been delayed from 2030 to 2035. And that's a change that has angered car makers in the U.K.

There were also a number of changes to how Britons can heat their homes in the future, relaxing a plan to phase out new gas boilers and doubling a grant for households to upgrade their boilers worth more than $9,000. The reason for these changes are due fold, according to the Prime Minister. Firstly, he says the U.K. is further ahead of every country in the world when it comes to tackling climate change, saying the U.K. has the fastest reduction in greenhouse gas emissions of the G7.

So, he's essentially arguing here that there is carbon headroom to relax policy. Secondly, he says he is concerned that the British public couldn't afford the policies.

[02:25:00]

Buying new electric vehicles, new boilers and insulating homes all at a time of high inflation and high borrowing costs. Some of course question whether there's another reason and that this is the starting gun of Rishi Sunak's election campaign. Whether it was rejecting this list of heavy-handed measures, which weren't even policy, the Prime Minister mentioned opposing the sorting of trash into seven different bins twice in his statement or the use of these three words throughout. Pragmatic, proportionate, realistic.

Reinforced in a tweet from the Prime Minister. A new political slogan perhaps not the sexiest, but the sentiment may appeal to those struggling with a cost of living and those on the right of the Conservative Party who want to see less government intervention.

Anna Stewart, CNN, London.

COHEN: The U.S. Federal Reserve takes a breather on raising interest rates. After a quick break, I'll talk with prominent economists about what this means for consumers.

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COHEN: The U.S. Federal Reserve announced Wednesday it would not raise interest rates right now, but could very well do so one more time this year. CNN Matt Egan explains what that means for American consumers.

MATT EGAN, CNN REPORTER: The Fed is almost done, but not quite. That's the message from Fed Chair Jerome Powell. As was widely expected, the Fed voted unanimously to keep interest rates at 22-year highs. But officials are still penciling in at least one more rate hike this year in their quest to get inflation back down to healthy levels. And the Fed does not plan to dial back its inflation fighting medicine very much at all next year.

Fed officials previously projected for rate cuts in 2024. Now they only see two rate cuts. So, what does all this mean? Well, first, it suggests that borrowing costs will stay relatively high for the foreseeable future. We're talking about credit cards, car loans and of course mortgages. That means further pressure on the economy. Of course, this is an economy already grappling with plenty of headwinds, including worker strikes, the Return of student loan payments and rising energy prices.

[02:30:04]

Still, there are clear signs of progress on the inflation front. Fed officials, they marked down their core inflation forecast for this year, and they simultaneously marked up their views on both GDP and unemployment.

Now this is a reminder of how the war on inflation has progressed much better than feared. The most aggressive rate hikes in four decades have helped cool inflation, all without wrecking the economy, at least so far. Now the question is whether or not the Fed can finish the job, and pull off a soft landing. Matt Egan, CNN, New York.

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COREN: I now want to turn to Carsten Brzeski in Frankfurt, Germany. He's the global head of Macro for ING Research. Carsten, great to have you with us. The US Feds pause was widely expected. But were there any surprises in what Jerome Powell had to say?

CARSTEN BRZESKI, GLOBAL HEAD OF MACRO, ING RESEARCH: Oh there were definitely surprises. I think Jerome Powell made it clear that there is a high likelihood that we're going to see an additional last rate hike before the end of the year, I think that was surprise number one. And the even bigger surprise was the Fed's own expectation that there would hardly be any rate cuts next year.

So, in June, the Fed had still expected that there might be a hundred base points rate cuts next year, but now it's only 50 base points. So the Fed is a strong believer in the soft landing scenario, and the most aggressive rate hike in decades will not have any big harm to the US economy. That's a big surprise.

COREN: I was going to say, do you agree with his assessment?

BRZESKI: I will say I find this a very optimistic surprise because when we look at all the risks that the US economy is currently facing, you mentioned them before already in the short report, I think it is very unlikely that the US will be able to manage this soft landing.

So we're currently still expecting a minor recession, starting with the fourth quarter of this year, and then, in the first half of next year, to bringing down the US economy into a de facto stagnation. And this, in my view, would also trigger a bit more aggressive rate cuts by the Fed next year.

COREN: The expectation, certainly, when you listen to what Jerome Powell has to say, is that inflation is under control. But is that realistic, considering oil prices are rising? And then you look at the auto strike in the US, which, if dragged out, could cause major problems for the US economy.

BRZESKI: I think no central banker in the world would currently really stand up and say, I know for sure that inflation is fully under control. I think the last couple years have shown that inflation is back, that there is only so much that central banks can really do to bring down inflation, because it's driven by oil prices. It is driven by the lack of qualified workers, demographics, et cetera, et cetera.

And I think what you're rightly pointing to is that there is a risk that we see a second wave of inflation coming and the surge in oil prices over the last couple weeks is, in my view, a worrying signal that we could see inflation also coming up, which would pose or put an effect on other central banks, for an even bigger challenge, namely, should they react to higher oil prices, which will be even more dampening economic activity, but will also risk that the inflation goes up again and that the central bank's credibility, as inflation fires, will further be on the mind?

COREN: I wanted to ask you about how this rosy picture that Jerome Powell is painting and, certainly, the markets in the US, you know, up there, they're buying into this story. How could it all unravel?

BRZESKI: Well of course, we all would love to believe that this is a rosy picture and, you know, we all love Disney movies, don't we? So of course we love the happy ending. I think when I look at the forecast by the Fed it is really hard to see that there won't be a real no negative impact on growth but the most aggressive rate hikes in the couple of decades, we can really orchestrate a soft landing. So, I'm a bit afraid that something is going to give. So either the economy will be weaker, and then, indeed, inflation will come down further.

Or if the economy remains as strong as it currently is, we will probably also see that inflation will then be higher, which then would trigger even more Fed rate hikes. So it is a very tricky situation. And all central bankers I think currently are right to say that they are highly data dependent, because no one has this crystal ball knowing what the future will look like in a couple of months from now.

COREN: I think it's always so important to speak to an economist outside the US, because I think you see things much more realistically.

[02:35:04] But, look, there are certain indicators that suggest the economy is not as strong as the headlines in the US suggest. Employment data is mixed, you know. Jobs numbers have been revised down time and time again. What is your take on where it's all heading?

BRZESKI: I think, you know, Anna, the problem is, remember the boy who cried wolf story? So, many experts also outside the US have been calling for a US recession. And it never came. So, the US economy indeed has proven to be much more resilient than people thought at the start of this year. Does this now mean that there will never be a slow, and there will never be a recession? No. When we look at the data, we do see underneath the headline data that there is a cooling of the labor market ongoing.

We're also truly afraid that, for example, now the student loan repayment will further undermine purchasing power, disposable incomes. So, they should also show up in consumer numbers. And then, let's not forget monetary policy has a delayed impact on the real economy, where we have now borrowing costs at record highs, be it credit card debt, be it mortgages. So, this will always take a couple of years before it has completely or fully unfolded its full impact.

So, therefore, I find it hard to see that this most aggressive monetary policy tightening will not have negative or adverse effects on the US economy. Because, I must say, I have trouble thinking that this time is different again. We will see that this is just a normal return of higher interest rates and higher interest rates undermine economic activity over the medium term.

COREN: Carsten Brzeski, great to get your perspective. Thanks so much for joining us. Well thousands of migrants risk their lives to reach the US, often hopping on northbound freight trains into Mexico. But as border crossings increase, the railroad moves to minimize that risk. Those details after the break.

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COREN: Iran's parliament has approved a controversial new dress code bill that sets harsh penalties around wearing the hijab. Under the new bill, women who refuse to wear the headscarf could face a number of financial penalties that could increase to a prison sentence if found to be done in an organized way. Iran state media says the bill would have a trial period of three years.

It still needs to be approved by the powerful Guardian Council before it's implemented. Human rights advocates have condemned the bill and are calling it gender apartheid. Amid a new surge in border crossings, a Mexican railroad company has indefinitely suspended dozens of freight trains that travel to border cities with the US.

[02:40:05]

The railroad says it stopped the trains to protect migrants after several injuries and deaths were reported recently. More now from CNN's David Culver.

(BEGIN VIDEOTAPE)

DAVID CULVER, CNN SENIOR US NATIONAL CORRESPONDENT: With growing concerns over a rising number of migrants trying to cross into the US through the southern border, one of Mexico's largest freight rail operators, Ferromex, has halted several northbound trains. Now these are the freight trains that migrants jump onto and they ride for days amid really treacherous conditions.

It takes them from places in southern Mexico, close to the US border. In May, my team and I went aboard and rode only what is a small portion of what some referred to as la bestia, the beast, given how dangerous and deadly it can be for migrants.

CULVER: We have permission to go up. Okay. Yeah. Many of these folks tell me they've been on here not hours but days. It's four days on the train but he's been traveling from Venezuela for six months. He's going to show me the little things he brought with him. This is everything he has, right here. But yesterday this is what he's got -- . He finished his food but he has a little bit of water left.

He says he wants to work in the US when he gets there. He wants a better future. A better life. I asked him, where are they going then? He said they really don't know but as of now they are basically just going with no idea as to what is next. Getting all their belongings out of what they have with them.

CULVER: Now the trains were halted to protect the migrants, according to the railroad operator. Mexico's president had said he would assure the routes continue, but it speak to not only the pressures for US border officials but the growing number of migrants flooding into Mexico. It's something we saw firsthand this summer. 500 miles from the US southern border encampment filling Mexico City.

The country's capital struggling to deal with the influx. Shelters overcrowding. We noted at the time, while the number of migrants entering the US was decreasing after Title 42 ended, it by no means has stopped the flow. Those migrants still desperate, still determined to reach their end goal which for most is the United States. David Culvert, CNN.

(END VIDEOTAPE)

COREN: Well thank you so much for your company. I am Anna Coren. I'll be back with more CNN NEWSROOM at the top of the hour. WORLD SPORT is next.

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