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Biden Vows to Respond to Deadly Drone Attack in Jordan; Israeli Protesters Block Aid Trucks from Entering Gaza Again; Putin Scrambling to Project Economic Stability in Russia; HK Court Orders China's Evergrande Group to Liquidate; Protesters Hurl Soup at Mona Lisa Painting. Aired 12-12:45a ET
Aired January 29, 2024 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
MICHAEL HOLMES, CNN INTERNATIONAL ANCHOR: Hello and welcome everyone. I'm Michael Holmes. Appreciate your company.
[00:00:31]
Coming up on CNN NEWSROOM, vowing to retaliate. Joe Biden says the U.S. will respond whenever, and however, it chooses to the deadly attack on U.S. troops in Jordan.
Israeli protesters block a key crossing, preventing vital aid from getting to Palestinians in Gaza. They demand no aid until hostages are released.
And later, protesters hurl soup at one of the most famous paintings in the world.
ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Michael Holmes.
HOLMES: U.S. President Joe Biden is vowing to respond after three American soldiers were killed and more than 30 wounded in a drone attack in Jordan. The attack on the outpost known as Tower 22 marked the first time U.S. troops have been killed by enemy fire in the Middle East since the start of the war between Israel and Hamas.
More than 30 other service members were wounded, including eight who had to be medically evacuated from the base near the Syrian border.
Mr. Biden is blaming Iran-backed militant groups for the attack, while in Iran, state media reports Iran's permanent mission to the U.N. denies the country had any involvement.
The U.S. president vowing to hold those responsible, accountable.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: We had a tough day last night in the Middle East. We lost three brave souls in an attack at one of our bases. I'd ask for a moment of silence for all three of those fallen soldiers.
And we shall respond.
(END VIDEO CLIP)
HOLMES: CNN's Kevin Liptak now with more on the U.S. reaction from the White House.
(BEGIN VIDEOTAPE)
KEVIN LIPTAK, CNN INTERNATIONAL CORRESPONDENT: President Biden calling the attacks on U.S. troops in Jordan despicable and wholly unjust --
LIPTAK (voice-over): -- saying that America's heart is heavy and vowing to respond at a time and in a manner of our choosing.
President Biden was on the road in South Carolina as this was all unfolding, briefed by his national security team, including the defense secretary, Lloyd Austin, and the national security adviser, Jake Sullivan.
And you can imagine in those discussions, a talk about how to respond in a way that would deter these attacks from happening again. But also the imperative to prevent this conflict from spreading even further.
And at the end of the day, President Biden does have quite a consequential choice to make here. He is coming under pressure from some Republicans to respond directly in Iran to some of these attacks.
But certainly, the imperative inside the White House has been to prevent this conflict from broadening. And the fear among American officials as these attacks had proceeded on U.S. troops in Iraq and Syria, is that it would eventually result in fatalities.
Now that that fear has been realized, the decision President Biden has is how to respond so that it doesn't happen again. And certainly, he will be making that decision over the coming days.
But in a statement, President Biden saying that "The three American service members we lost her patriots in the highest sense. And their ultimate sacrifice will never be forgotten by our nation. Together, we will keep the sacred obligation we bear to their families."
Now at the same time, the president is dispatching his top intelligence official, Bill Burns, to France for talks with his counterparts from Egypt and Israel on these hostage negotiations.
Certainly, the hope among American officials is that these will be fruitful in securing the release of all of the remaining hostages in Gaza, paired with a prolonged cessation of hostilities.
And really, the hope had been that this pause in the fighting could cause some space for American officials and Israeli officials, along with their counterparts in the region, to come up with a plan to end this conflict permanently.
And certainly, the death of the American soldiers --
LIPTAK: -- in Jordan will lend some urgency to these talks as the U.S. continues to try and come up with a solution to this conflict and eventually result in lasting peace.
Kevin Liptak, CNN, the White House.
(END VIDEOTAPE)
[00:05:03]
HOLMES: Mark Hertling is a CNN military analyst and former commanding general with the U.S. Army, Europe, and Seventh Army.
Always good to see you, sir. Now, the U.S. has, I think, by and large, responded in a fairly measured way to these sorts of attacks militarily, but now troops are dead and wounded.
How does that attack change the calculus for the U.S. in terms of its options?
MARK HERTLING, CNN MILITARY ANALYST: Yes, it's certainly crossed the president's red line. What he said would cause some additional retaliation.
So I think what's going to happen, Michael, is we will see additional strikes, probably a lot more kinetic activity on some major basis that belong to the popular mobilization forces that are the puppets of the Iranian government.
Don't know how difficult that's going to be, because as you know, in this kind of environment, you can go after some forces. But it's difficult to hit all of those that are trying to harm the United States citizens. Soldiers in the area.
So there will be some more kinetic activity, and I would guess there might be some covert action, too, against, not just the PMFs and the al-Quds Force. But also possibly even some elements within Iran itself, because they know they have intelligence that Iran is behind this. Or so that's what the NSC has stated.
HOLMES: Yes. I guess when you -- when you look back since October 17, I think it's been nearly 160 attacks on U.S. forces in the region. You've got the war in Gaza, which many in the region see the U.S. as a partner in with Israel.
They got clashes on the Lebanese border. The Houthi missiles are flying; these clashes in Syria and Iraq.
There's talk of the risk of a regional war but is a low-level regional war already underway. No, I don't think so, Michael. And I'm going to revert back to what you've experienced.
I mean, you've been in this region multiple times. Everyone's counting the 160 strikes or so that have happened since October the seventh, when Hamas invaded or, you know, conducted terrorist attacks inside of Israel.
What we have to remember is this has been going on for a lot longer than that. Years of popular mobilization forces, the -- the proxies of the Iranian government had been conducting multiple strikes against not only the U.S. but also the Iraqi government.
They have been fighting hard, not just against ISIS in Syria, but also against the curves the United States and anyone else is trying to tamp down ISIS.
So this is an opportunity for Iran to use their proxy forces. And by the way, let me state for the record, Iran could care less about the -- any casualties that occur with the Houthis or the PMFs, or Hezbollah, or Hamas.
They just know this is an opportunity to continue to conduct strikes against the West, against the United States, because they don't want the U.S. forces in any of these Middle Eastern countries. So this has been going on for a long time. You know that.
Yes, President Biden said a couple of weeks ago before all of this, that after one of the -- one of the sites, he said that he delivered a message to Iran. And he said, quote, they know not to do anything.
Well, here we are. I mean, when you look at the message and the receipt of that message in the context of what's happening in the region, what would deter Iran?
HERTLING: Yes, well, the thing is, Iran still has plausible deniability. They can say it's not us. It's the Houthis. It's the mobilization forces inside of a rock. It's something the Iraq government has to do something about.
It's serious. Free-floating electrons in Syria. So they can continue to deny that they're behind us.
The only thing that might cause a shift if the United States released pretty decisive intelligence, saying this is what we have. We have communication between the Iranian government and these forces.
We have some type of action where we detected the supply of weapons or the Quds Force from Iran, actually leading some of these forces. If there was solid proof that could be made available to the Middle East. First of all, it may change things, but truthfully, as you know, it may not either.
I mean, there's so much of a misinformation, misdirection campaign going on with these forces than it may be difficult, even if the truth is released with hardcore intelligence to sway some of the voices in the Middle East that are supporting these forces. That's the challenge of what we're seeing in this area right now.
HOLMES: Yes. When when you look at a lot of these militias, when you look at Hezbollah, when you look at the Houthis, I mean, it all sort of goes back to Gaza.
[00:10:04]
The enormous destruction, the level of death in Gaza does play into all of this. The effects of Israeli actions there. How has the unbridled U.S. support for Israel and Gaza played into regional fury with the U.S. and, in a way, given Iran a regional rallying call against the U.S.?
HERTLING: It certainly has contributed. What we're seeing is the building of alliances with some of these forces. The -- the attacks that Israel has conducted in Gaza, that has harmed civilians and caused damage to the Palestinian infrastructure. Certainly, that is resonating with the Arab world with -- throughout the Middle East.
So there is a building of alliances. Yemen, the Hezbollah forces, the PMFs in Syria and Iraq, even the Iraqi government, we're seeing tend to be swayed by some of these arguments; because they know they have Iran as a next-door neighbor.
And when it comes to a choice between U.S. forces inside of Iraq, continuing to fight ISIS, versus Syrian pressure through some of these PMF forces that had been allowed to flourish within Iraq, that's going to be a difficult choice.
HOLMES: Wish we had more time, Mark Hertling. Thanks so much.
HERTLING: Pleasure, Michael. Thank you.
The main U.N. agency in Gaza is urging countries to reconsider cutting off funding over allegations staff members were involved in the October 7 Hamas attacks on Israel.
France and Japan have joined several other countries, including the U.S. and the U.K., in suspending funding for UNWRA. An Israeli official says the country shared information with U.S. officials on the intelligence they had on the UNWRA staffers who were allegedly involved in the attacks.
The official said that they also reached out to UNWRA several days before briefing the U.S. Hundreds of thousands of displaced Palestinians are dependent on aid from UNWRA. And some say a pause in funding could be disastrous and could come soon.
(BEGIN VIDEO CLIP)
FATIN SAFI, DISPLACED PALESTINIAN (through translator): The situation we live in right now, her support from all around the world, the whole world is responsible for the situation that we live in right now. It is a world that cuts the aid from children and women.
We're not talking only food. We are also talking on cutting medicine. They would also cut us off from the air if they can. What is our fault as a Palestinian people? Our land has been occupied. Our houses have been destroyed, and we have been through many wars. And this is the worst. We don't have any hope in life.
(END VIDEO CLIP) HOLMES: Meantime, Palestinian civilians mourning the deaths of family
members killed in overnight Israeli strikes. The Hamas-run Health Ministry in Gaza says at least 165 people were killed in just the past 24 hours, bringing the overall death toll to more than 26,000 since the war started.
Now it all comes as heavy fighting continues in Khan Yunis in Southern Gaza. Israel Defense Forces say they're carrying out, quote, "precise operations" against members of Hamas operating in and around NASA and al-Amal hospitals.
But the Palestinian Red Crescent Society says the hospitals have been under siege over the past week.
Meanwhile, hundreds of Israeli protesters once again blocking aid trucks from even getting into Gaza. They're demanding that the remaining Israeli hostages be freed before any more assistance is delivered to the besieged enclave.
CNN's Nic Robertson with details.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice-over): In Southern Israel, protesters snake through fields dodging police checkpoints, eventually forced to walk.
ROBERTSON: So we're getting close to the border now. There are a lot of police and a lot of soldiers here. But it seems that people can just pass through.
ROBERTSON (voice-over): They've come 100 or so to Kareem Shalom, Israel's only functioning border crossing to Gaza, to block aid trucks.
ROBERTSON: Don't the army and police stop you?
SEFI BENCHAIM, PROTEST ORGANIZER: They now -- they try, but we came with a lot of people. And they are with us, because --
ROBERTSON (voice-over): A pause as he finds the right words, that the soldiers sympathize with them.
BENCHAIM: All of us were the same. We have the same kids inside Gaza.
ROBERTSON (voice-over): Sefi organizes the protests; in the last four days have effectively shut the border. Their demand: no aid until all hostages are released.
BENCHAIM: We're saying the simple thing. Very, very simple. We're saying that you want humanitarian aid? OK, we will give you everything.
First of all, give us our people.
[00:15:03] ROBERTSON (voice-over): More than 130 hostages still held in Gaza. Attitudes amongst some Israelis are hardening.
BATYA JERENBERG, PROTESTER: It's very simple. Hamas is killing us. We're at war. In a war, you don't give help to your enemies.
ROBERTSON (voice-over): Since the war began, many Israelis saw aid to Gaza pre-war, about 500 trucks a day, as tantamount to backing Hamas.
But this is the first time protesters are actually stopping the convoys, already operating way below the minimum the U.N. says is needed.
ROBERTSON: Does it worry you that the trucks that don't come through here today, there will be starving children tonight because of it?
MEIR RASKAS, PROTESTOR: The fastest way, in my opinion -- I'm not a military expert -- but the fastest way to end this war and end the suffering is to have the hostages released.
ROBERTSON (voice-over): Inside Gaza, desperation grows. Aid trucks this weekend, looted in conditions many experienced humanitarian officials describe as the worst they've seen.
Doctors without Borders, the chief of mission, just returned; says more people may die if aid is held back.
LEO CANS, MEDECINS SANS FRONTIERES: We have desperate supplies that needs to come in. And it's not coming in. So yes, it's as I said. As I said, there's the consequences. These people will die. People will suffer more.
And international law will be -- disregard even loss.
ROBERTSON (voice-over): By late afternoon, police and soldiers at the border sent running when protesters saw trucks moving. Turned out they were being sent back to Egypt.
The IDF says it's tightening security in the area.
Nic Robertson, CNN, on the Israel-Gaza border.
(END VIDEOTAPE)
HOLMES: Israel, meanwhile, joined high-stakes talks with the U.S., Qatar, and Egypt on Sunday, officials trying to work out a hostage release deal along with a pause in the fighting in Gaza.
The Israel prime minister's office says the meeting was constructive, but inconclusive with, quote, "significant gaps" to be worked out in additional meetings this week.
A diplomatic source tells CNN that Qatar's prime minister is expected to travel to Washington this week. U.S. officials say they're cautiously optimistic, that talks are proceeding in the right direction. And that an agreement could be within reach. The U.K. says a British warship in the Red Sea took down a drone
launched by Iranian-backed Houthi rebels on Saturday. So far, no injuries reported.
The British defense secretary calling the growing attacks along the key shipping route, quote, "intolerable and illegal." The U.K. and U.S. have been jointly carrying out strikes against Houthi targets in Yemen. But the rebel group says it won't stop the attacks until the war between Israel and Hamas is over.
Some Russians are having to line up at grocery stores, where they find rising prices on the basics, like eggs. How it's revealing an unstable reality in the country. That's when we come back.
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HOLMES: The head of NATO, Jens Stoltenberg, is visiting the U.S., and he's expected to meet with senior officials in Washington in the coming hours.
In an interview Sunday, Stoltenberg touched on the dispute in Congress over tying Ukraine aid to tighter U.S. border controls, stressing that Ukraine's needs cannot be ignored.
(BEGIN VIDEO CLIP)
JENS STOLTENBERG, SECRETARY GENERAL, NATO: What matters is that Ukraine gets continued support, because we need to realize that this is closely watched in Beijing. And so it's not only making Europe more vulnerable, but all of us, also United States more vulnerable if Putin gets what he wants in Ukraine.
And this is actually a good deal, because we -- by using a fraction of the U.S. defense budget, we have been able to destroy and degrade the Russian army substantially.
And therefore, we should continue to do so.
(END VIDEO CLIP)
HOLMES: Stoltenberg's U.S. visit comes as Sweden moves towards becoming NATO's newest member. But he also said that the addition of Sweden is not meant to provoke Russia.
And turning now to a country already in NATO, Finland, where two candidates are advancing out of a crowded presidential race into a runoff.
Center-right candidate Alexander Stubb of the National Coalition Party and the Liberal Green Party's Pekka Haavisto will face off in two weeks.
As president, the winner will lead Finland into its new NATO membership, an alliance that has angered neighboring Russia, both men promising a tough stance against Vladimir Putin. And as the war grinds on in Ukraine, Putin is trying to project an
image of economic stability in Russia. But it's proving difficult. The price of one staple, eggs, for example, surged in Russia last year, possibly underscoring a broader problem for Putin ahead of his country's upcoming elections.
CNN's Clare Sebastian reports.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT (voice-over): "When your husband spoils you with expensive presents," reads the caption. Russian social media brimming with egg memes. Making light of a new feature of Russia's upside-down war economy.
Sudden and unexpected price rises.
SEBASTIAN: Drive an hour outside Moscow, though. And it's no laughing matter for these pensioners.
"Yes, of course we notice it. The pension is 13,000 rubles," says Euba (ph). That's less than $150 per month.
"Maybe we buy less meat," says Nadyeshta (ph). "There's still enough for medicine."
Egg prices rose 18 percent in December alone, Russian official data shows. More than 60 percent over the year, far outstripping overall inflation at 7.4 percent.
As images spread of lines forming outside supermarkets -- this purportedly from Belgorod in December -- Russia's president forced into damage control mode.
VLADIMIR PUTIN, RUSSIAN PRESIDENT (voice-over): I am sorry about this and want to apologize for this problem. This is a setback in the government's work. Although they say this is not the case, I still think it is. The problem is related to a failure to increase imports enough.
SEBASTIAN (voice-over): The government took the not-so-subtle hint. Eggs were exempted from import duties for six months, and shipments started arriving from Turkey, Azerbaijan, and staunch ally Belarus also ramping up supplies. Its president unable to resist a rare dig.
ALEXANDER LUKASHENKO, BELARUSIAN PRESIDENT (through translator): Our own production covers our needs in terms of grain, pork, chicken, milk, vegetable oils. and chicken eggs.
PUTIN (through translator): Send some to us. Don't be greedy.
SEBASTIAN (voice-over): In Putin's surprisingly resilient war economy, the egg crisis reveals the biggest problem is not decline but overheating.
Putin says this is about higher demand because of the slightly higher wages. Partly true, economists say, but what Putin doesn't say is why wages are up.
SEBASTIAN: This labor shortage is a huge issue, right? What does that come from?
ELINA RIBAKOVA, SENIOR FELLOW, PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS: Mobilization. I think to me the key issue here is the fact that there are a lot of deaths at war. And then they have to be replaced. These people have to be replaced. You know, the Russian officials trying to keep it very quiet the numbers of how many people have died.
SEBASTIAN (voice-over): The weaker ruble, a direct result of sanctions, has also pushed up import costs for poultry producers.
[00:25:06]
And then there's the war-time spending.
DR. RICHARD CONNOLLY, ASSOCIATE FELLOW AT RUSI: The budget for 2024 envisages, even adjusted for inflation, record levels of federal government expenditure.
So when you put that alongside of, you know, a supply-side tightness with a massive increase in demand driven by the state, you've got a recipe for inflation.
SEBASTIAN (voice-over): President Putin now poised for the next price spike, a threat to his image of stability ahead of March elections but likely not his presidential shelf life.
Clare Sebastian, CNN, London.
(END VIDEOTAPE)
HOLMES: Farmers in France are planning to encircle Paris as part of their protest for better pay and living conditions. They held similar protests outside of Paris on Friday, shutting down roads.
But government officials pledge to keep Paris open for business. They're planning to mobilize 15,000 police officers and other law enforcement to maintain order.
(BEGIN VIDEO CLIP)
GERALD DARMANIN, FRENCH INTERIOR MINISTER (through translator): The second instruction is obviously for law enforcement to show great moderation, as I have done since the start of this protest movement toward protesters and farmers.
We do not seek escalation. We want people to be respected, first of all, law enforcement and for property to be respected. We don't intend to allow government buildings or tax collection buildings or grocery stores to be damaged or trucks transporting foreign produce to be stopped.
(END VIDEO CLIP) HOLMES: Far-right French politician Marine Le Pen is showing her support, taking a ride in a tractor and saying France's position as Europe's largest food grower is essential to national security.
(BEGIN VIDEO CLIP)
MARINE LE PEN, FRENCH POLITICIAN (through translator): If agriculture is thinking in France, our entire country is sinking. Because our country is a great agricultural power. And if it were announced to be one than it is also our sovereignty in our food security, which will sink.
We must therefore put in place a major agricultural rescue plan.
(END VIDEO CLIP)
HOLMES: Farmers in Belgium protested on Sunday, as well. Many European farmers are worried about crops entering the E.U. market from countries with fewer regulations.
And thousands of demonstrators turned out in Germany on Sunday, the marchers in Munich calling for more help with small businesses and farmers. Many of the protesters also against additional funding for Ukraine to fight Russia.
Much more to come here on CNN NEWSROOM, including the latest on our top story: that deadly attack on U.S. personnel in Northeast Jordan.
Also, one of China's largest real-estate developers is being forced to liquidate. We'll be live in Hong Kong with the latest on the court's order.
(COMMERCIAL BREAK)
[00:30:13]
HOLMES: Returning now to our top story, the deadly drone attack on U.S. troops in Northeast Jordan. Right now, U.S. officials believe militants backed by Iran fired the drone, and they're working to determine which group precisely is responsible.
CNN national security reporter Natasha Bertrand has details.
(BEGIN VIDEOTAPE)
NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: Three U.S. Army soldiers were killed and more than 30 U.S. service members were injured --
BERTRAND (voice-over): -- when a drone struck a U.S. Army base in Northeast Jordan on the border with Syria on Sunday morning, local time.
Eight U.S. service members had to be medically evacuated.
BERTRAND: And the number of wounded is expected to rise as service members report injuries consistent with traumatic brain injury. Now the Biden administration --
BERTRAND (voice-over): -- has said that they believe that an Iran- backed militia was responsible for this attack on the U.S. service members at this base on Sunday.
However, they have not yet identified which militia group they believe carried out the strike. However, they have vowed to retaliate. President Biden said on Sunday that the U.S. shall respond. And Secretary of Defense Lloyd Austin said that the U.S. will respond at a time and place of its choosing and reiterated that it is unacceptable for U.S. service members to have been killed.
Now this is not the first time that Iran-backed militias have targeted U.S. and coalition bases in Iraq and Syria. In fact, since October alone, these Iran-backed proxy groups have launched over 150 drone and rocket attacks at these bases since October, saying that they are retaliating --
BERTRAND: -- against the U.S. response and support for Israel in the war against Hamas in Gaza.
The U.S. has warned Iran privately through diplomatic channels that they need to rein in these proxy groups. But so far, those private warnings have not had a significant effect.
Now the U.S. has responded to these attacks in the past --
BERTRAND (voice-over): -- striking certain areas related and linked to Iran in Iraq and Syria, as well as weapons depots and command-and- control centers used by these Iran-backed proxy groups.
However, it has not yet deterred those attacks.
BERTRAND: And as we saw on Sunday, those attacks continued and had extremely tragic results. The next-of-kin notifications for these three U.S. Army soldiers is ongoing.
And we expect to have more details about those who died and those who were wounded in the days to come.
Natasha Bertrand, CNN, Washington.
(END VIDEOTAPE)
HOLMES: Turkey says it's arrested at least 47 suspects linked to Sunday's church attack in Istanbul.
Turkish security forces carried out more than 30 raids, looking for two gunman who opened fire during mass at a Catholic Church. At least one person was killed.
At least two of the suspects are believed to be affiliated with ISIS. ISIS did issue a statement, claiming responsibility for the attack, saying it was a result of the call from ISIS leaders to, quote, "target Jews and Christians everywhere." Turkish President Recep Tayyip Erdogan called the church to express
his condolences, and Pope Francis condemned the shooting during his weekly prayer at the Vatican.
A court in Hong Kong has ordered the Evergrande Group, one of China's largest property developers, to liquidate. It comes years after the company defaulted on more than $300 billion in debt and sent the Chinese real estate industry into a tailspin it still hasn't recovered from.
CNN's Kristie Lu Stout is following developments from Hong Kong; joins me now.
So Kristie, what does this ruling mean for China's property sector and the world's second biggest economy.
KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT/ANCHOR: Well, Michael, this move could send shockwaves through China's capital and property markets. This is what we've learned.
Earlier today, on Monday, a judge here in Hong Kong ruled to liquidate Evergrande after years of failed attempts to restructure it.
Now, announcing the ruling, the Hong Kong judge, her name is Linda Chan. She said this: quote, "It is time for the court to say that enough is enough," unquote.
Evergrande shares were trading down as much as 20 percent before the hearing, before the ruling was announced. Trading was halted in China Evergrande and its listed subsidiaries across China.
Now, for years, this company, Evergrande, has been the poster child of China's nationwide property debt crisis. It all goes back to 2021. It sent China's property sector into this tailspin, when it defaulted on its offshore debt.
It is the world's most indebted property developer. It has more than $300 billion worth of liabilities, $240 billion in assets. And analysts say that this decision to liquidate the company is good news, long-term, for China's economy but will be painful.
This is what we heard from Andrew Collier with Orient Capital Research. He said this: quote, "Evergrande's liquidation is a sign that China is willing to go to extreme ends to quell the property bubble. This is good for the economy in the long term, but very difficult in the short-term."
[00:35:10]
And then we heard this from Gary Ng of Natixis. He adds this: quote, "It is not an end, but the beginning of the prolonged process of liquidation, which will make Evergrande's daily operations even harder."
He goes on to say, "Investors will be concerned about whether there will be a snowball effect on other developers as the queue to liquidation is long."
Now, Gary Ng there, hinting that all eyes on Country Garden, another indebted property developer, as well.
Now, this liquidation process for Evergrande, it could be very, very complicated, given the many authorities, the many parties involved. There had been questions about whether officials inside China would respect and uphold a ruling from a judge here in Hong Kong.
But ahead of the decision, we did learn that China's supreme court and Hong Kong's Department of Justice, they signed an agreement of reciprocal recognition to enforce this judgment.
Back to you, Michael.
HOLMES: Go back to the basics. What happened to Evergrande? I mean, what went wrong?
STOUT: Evergrande is the poster child of China's deepening property debt crisis. It's also been the poster child of China's -- the downside of China's growth at all costs business model that's been in place for decades.
Now, for decades, the times were really good for Evergrande. It sold so many different property developments. You can recall the pictures we could share with you of unfinished apartment buildings across China.
There was a time when consumers would purchase these buildings, even before construction was finished. And during these good times, that was when Evergrande mounted and just gobbled up loads of debt, $1.3 billion worth of liabilities.
It all changed in 2021. That was when the Chinese central government authorities realized that property prices were too high. They made a move to curb excessive lending. And then Evergrande later that year defaulted on its offshore debt. That's what sparked the property crisis. And the property industry has not been able to recover since.
And Michael, as you've heard many times as we've been talking about Evergrande over the years, this is significant. Because 30 percent of China's overall economic activity is in the property industry.
Back to you.
HOLMES: Yes, very, very big deal. Kristie Lu Stout in Hong Kong. Appreciate it. Thanks so much.
We can take a break. When we come back in Paris, activists launched a sneak attack on the world-famous Mona Lisa. We'll tell you why after the break.
[00:37:41]
(COMMERCIAL BREAK)
HOLMES: Activists have once again sought to vandalize art as a method of protest.
In the latest incident in Paris, two people threw pumpkin soup at Leonardo da Vinci's masterpiece, the Mona Lisa, leaving some visitors disgusted and annoyed.
(BEGIN VIDEOTAPE)
HOLMES (voice-over): The crowd gasps as two activists throw soup at one of the most famous works of art in the world. But it would be the Mona Lisa, painted by Leonardo da Vinci in the 16th Century, who would have the last laugh.
Her mysterious untouched by the stunt --
UNIDENTIFIED MALE: We need to close the room.
HOLMES (voice-over): -- safe behind a shield of protective armored glass as security ushered people out of the room, the vandals obscured behind barriers.
Their protest for healthy and sustainable food leaving a bad taste in the mouths of many visitors.
UNIDENTIFIED MALE: It's disgusting to treat art that's really valuable for the history of humankind that way.
HOLMES (voice-over): Museums around the world are on guard after a series of similar attacks on famous works of art, whether its throwing soup at a Van Gogh; smearing paint on the casing of the Degas sculpture; or hurling oil at a painting by Gustav Klimt.
It's all for shock value: a tactic used by climate or anti-oil groups to get attention. But to many people, it's a baffling, if not infuriating disruption.
UNIDENTIFIED FEMALE (through translator): I really don't see the link. I'm not shocked for the Mona Lisa. I'm not worried for her, because she's ultra protected. But then I don't see the link with food, other than the fact that the Mona Lisa is internationally recognized. So we'll definitely hear about this.
HOLMES (voice-over): The Mona Lisa has survived the centuries. It's been stolen, attacked with acid, had objects thrown at it. So a dowsing of soup and a canned message by activists only puts the spotlight back on it.
A masterclass in capturing the public's attention, something with which no gimmick or cheap trick can compare.
(END VIDEOTAPE)
HOLMES: Now, the NFL's defending champions, the Kansas City Chiefs, are headed back to the Super Bowl for the fourth time in five years. And they'll be facing one of the league's hottest teams: the San Francisco 49ers. Sunday's AFC championship game between the Chiefs and the Ravens in
Baltimore was a defensive battle. Kansas City managing to contain Ravens quarterback Lamar Jackson for much of the game.
And the chiefs held on to win 17-10.
And in the NFC title game, it was just the opposite, as shoot-outs between the 49ers and the Detroit Lions, who really should have won. But that's just me.
The Lions, on the road and against all odds, dominated the first half, up 17 at half time. But after that, it was all San Francisco, scoring 27 unanswered points for an epic comeback, winning 34-31.
Super Bowl LVIII, between the Niners and the Chiefs, is February 11 in Las Vegas.
Bummed for Detroit.
Thanks for spending your part of your day with me. I'm Michael Holmes. I'll see you in 15 minutes.
[00:43:02]
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