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CNN International: Stocks Tumble Amid Fears Of U.S. Economic Slowdown; Harris Set To Announce VP Pick By Tuesday; Biden Convenes National Security Team As Tension Rise In Middle East; Hundreds Arrested In Far-Right Riots Across U.K. Aired 3-4p ET

Aired August 05, 2024 - 15:00   ET

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

[15:00:41]

RICHARD QUEST, CNN HOST: Eight o'clock in the evening in London, 4:00 in the morning in Tokyo, it's the afternoon, 3:00 p.m. here in New York. I'm Richard Quest. Very glad to have you on board. This is CNN NEWSROOM.

Here is the news.

We start with the question plaguing global markets. Is the soft landing in the market taking a nosedive?

Stocks are now beginning to recover off drug market meltdown this morning. The Dow opened more than 1,000 points lower. The S&P was down over 4 percent. The Nasdaq, the tech heavy Nasdaq, was down by more than 6 percent at the close. The Wall Street losses are the result of global sell-offs.

Now, it all starts, of course, in the U.S. last Friday, but then you've got Japan and overnight Sunday into Monday to the United States, then fueled of affairs are slowing economy. All in all, there are worries as well about bets on artificial intelligence that will be paying off in the future. Add in the job numbers that we saw and a volatile presidential election.

Julia Chatterley is with me.

Julia, of the maelstrom of misery that has made up this market, which do you think is the telling point?

JULIA CHATTERLEY, CNN ANCHOR, FIRST MOVE: I think there is a lot going on, and that's the telling point. You actually can't decipher I think what the most important factor is, but I will tell you, it began earlier than Friday and that jobs number. You mentioned it. We've seen some of the strongest pillars of the financial markets under pressure now for some days and that's the tech stocks and that pressure continued.

We also have that weaker than weaker-than-expected jobs number, manufacturing data and that made and raised palpable risks I think that the U.S. economy is slowing quicker than we thought, throwing them finger-pointing about the Federal Reserve and whether or not they should have cut rates. They have the capacity to cut rates if they need to. Fast forward to last night, and you've got the Japanese market selling off 12 percent.

Now, I would call that panic, quite frankly, and you don't see that without seeing a knock on impact to U.S. markets, to throw in some geopolitical risk if you want to, with Iran and Israel, some are markets which means that a lot of people are on the beach and not trading that adds to choppiness, and this is the result you get.

Richard, I would be tempted if this were just about that data from Friday to suggest that the markets, the stock markets are overreacting. But when you add in all of these things I think it makes sense for people to be a bit cautious here. And let's be clear, the stock markets is still up, what, 10 percent year-to-date.

QUEST: Right.

CHATTERLEY: This is gains being taken back. This is not losses, and that's an important distinction.

QUEST: But huge, absolutely. Listen to Austan Goolsbee, who is now a Fed governor and how he puts it and the ability of the Fed to respond.

This is the governor.

(BEGIN VIDEO CLIP)

AUSTAN GOOLSBEE, PRESIDENT, FEDERAL RESERVE BANK OF CHICAGO: Everything is always on the table, whether that's increases, cuts, et cetera. But the Feds job is very straightforward: maximize employment, stabilized prices, and maintain financial stability. That's what we're going to do. We're forward-looking about it. And so, if the conditions collectively start coming in, that on the through line there is deterioration on any of those parts, we're going to fix it.

(END VIDEO CLIP)

QUEST: Now, assuming that we know rate cuts already baked in for September, is there anything that you are seeing that would warrant either a bigger rate cut, or an emergency meeting, or something in- between?

CHATTERLEY: So just to be clear, the market is now pricing in a half, a percentage point rate cuts in September. Over the next four meetings, we've got one and-a-half percentage points, and that is a dramatic shift in what we've seen in the bond markets and in expectations, and actually that eases financial conditions. That's important because that will help the economy along.

No is the answer, Richard, whether it's the volatility -- go on.

QUEST: If it's a half a point in September, does that -- is that -- is that the evidence for the prosecution, milady, that they should have cut sooner?

CHATTERLEY: It's evidenced that they've created a situation where the markets and investors are having a tantrum because they're concerned about one data point. [15:05:03]

I'd argue that they'll still go a quarter of a point. Let's get some more inflation data. Let's get some more jobs data first.

I was just going to finish what I was going to say, Richard.

QUEST: Please, please.

CHATTERLEY: No, no into market rate cut based on the data that we're seeing at this moment, nor the volatility that we've seen so far in financial markets because if you do that, you create more panic and we're not seeing panic, we're seeing fear, and I think that's justifiable.

Don't create panic, but be certain about what you need to do. They have room to cut rates, Richard. Let's be clear.

QUEST: I thought you were going to do a Margaret Thatcher -- no, no, no, or some version thereof. Julia?

CHATTERLEY: I'll save it for your show later.

QUEST: Oh, please do. Thank you very much. Julia is with me.

Rana is also here, global economic analyst and columnist for "The Financial Times".

You didn't -- you chose that green deliberately. You're telegraphing -- you're telegraphing something but what?

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: I'm not in a panic. I think this is a summer tantrum. I think that, you know, overreacting to one bad jobs number is just that an overreaction. I would agree with Julia that I don't think were going to see a wild swing a half, half a percentage point cut in September unless something really truly dramatic happens between now and then.

All that said, Richard, you and I've had this conversation many times in the last couple of years, there's reason to expect to slow down. I mean, there just is. The COVID spending cushion --

QUEST: Right.

FOROOHAR: -- has been, you know, whittled away. You have a lot of geopolitical concerns. You have margins that are tighter. You also have Kamala Harris now surging forward in this new way in the presidential race, and investors are saying, well, maybe were going to get a Democratic president and no tax cuts in the fall. You know, there's just a lot in play right now.

And I think it's quite natural that people were feeling fearful about a slowdown. And, you know, they don't want the music to stop playing. But at some point, it always does. We know that.

QUEST: So, whether music might, listen to Jerome Powell, he's the chair of the Fed, this is what he said about that decision that they made last week.

(BEGIN VIDEO CLIP)

JEROME POWELL, FEDERAL RESERVE CHAIRMAN: The question will be whether the totality of the data, the evolving outlook in the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market. If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September. We're balancing the risk of going to soon as the risk of going too late, that's what we're doing. There's no guarantee in it. It's a very difficult judgment call, but this is -- this is how we're making it.

(END VIDEO CLIP)

QUEST: Are you in the fan that they've got it right or that they're on behind the curve, or that they could never win?

FOROOHAR: Boy, I'm going to have to go with could never win. I mean, it has been very, very difficult to balance inflation versus labor markets in recent years, it just has. I mean, we're in an odd place in global economy where the U.S. is having this incredibly robust recovery in some places, you walk around your on vacation this summer camp, you see that people can't find labor.

QUEST: Yeah.

FOROOHAR: I mean, you know, there is still a lot of that. On the other hand, you see things like McDonalds disappointing, big tech you talk what about earlier disappointing. So they're really mixed signs. I think it's hard to get it right.

I think they're probably, if I had to -- if you put a gun to my head, I'd say maybe a little bit behind the curve because I do sense some signs of softening and I have since the end of last year, you've been going to see certain indicators, delinquencies and loans, things like that start turning to tick up.

It's also about two economies, Richard. It's about, you know, the haves and have-nots here. So --

QUEST: OK. They've got 500 basis points of, if you will, see floor space to cut rate if necessary. This is -- I don't know. I've been bitten many times, but this does not feel like a crisis in any shape or form at the moment.

FOROOHAR: I would agree with you and I'd also remind everybody that August -- I mean, as we all know, August has become a month for market events that managers are all at the beach. The clients are anxious, choppy waters.

Let's wait a few more weeks and then we will have a much firmer raid on all of this.

QUEST: When it can't happen, you're going away on holiday, so there can be no -- so there can be no market --

FOROOAR: I'll be back on the 24th. I'll be with you.

QUEST: What? (INAUDIBLE) Latin, market collapse 25th.

Rana, it's good to see you. Have a lovely holiday. Rest and enjoy.

FOROOHAR: Thank you.

QUEST: Thank you.

As we continue, how the White House and Vice President Harris are going through it and are responding as we await the news of Harris's running mate. Now, we are where we've been most of the session after a sharp fall at the beginning, and I'm guessing called me a fool. Fool. We're going to stay in this area until the close.

(COMMERCIAL BREAK)

[15:13:19]

QUEST: Kamala Harris has only hours before deliberating and she's deciding who will her running mate be. Tomorrow, they're going out and about together.

Her day job is commanding much of her attention today. She's set to join President Biden in the Situation Room for an update on tensions in the Middle East, the administration's reacting to the stock markets in freefall this morning.

MJ Lee is in Philadelphia where Harris is set to announce her running mate.

Let's do this. First of all, do we know when it's likely to be this announcement? Is it going to be tomorrow do we think?

MJ LEE, CNN SENIOR WHITE HOUSE CORRESPONDENT: So, we don't know exactly when this is going to be announced, and we can tell you that the campaign is trying to keep the decision closely under wraps and they would like the public announcement to come as close to the evening rally that will take place here in Philadelphia tomorrow evening as possible.

And they're sort of modeling this after what we saw four years ago with President Biden when he announced that he was choosing Kamala Harris as his vice presidential running mate. But, of course, we do know who the final contenders are likely to be. And those are the three people that the vice president met with in-person yesterday in Washington? Do you see, they are Pennsylvania Governor Josh Shapiro, Minnesota Governor Tim Walz, and Arizona Senator Mark Kelly.

Based on all of our reporting, Richard, it would be a complete shock if the person she chose didn't end up being one of those people. And we know that just two take people a little bit behind the scenes on this vetting and selection process. The two big questions that the vice president has been asking of the team around her and certainly herself, is the question of who can help me win?

[15:15:01]

And second, who would be a good governing partner for me?

We also know, of course, that the vetting team has presented her with a ton of data, a lot of research about each of the three people. And just a lot of other polling information on about the three contenders I should say, because at the end of the day, she can look for a good governing partner, but you're not going to be doing governing if you don't win the election come November.

QUEST: That Kamala crash is how Donald Trump is describing today's market movements and stock market turmoil. Now, bearing in mind, they can't force the Fed to do anything that the Fed doesn't want to do. Is this -- should she be worried? Is it something that they are worried about that she's going to get stuck with the bad economic or market news?

LEE: I think everybody should be worried, you know, this is at the end of the day, if she were to be successful in November, and if she were to win this election, the economy that she's going to inherit is the economy that she's going to inherit. And I think the challenging position can that the vice president is in is of course, the fact that she is very much a part of the Biden administration.

Any policies that are perceived to have been sort of contributing to whatever we see unfold today. And in the coming days and weeks, she is very much going to be a part of that.

But, Richard, I have to tell you, this doesn't just apply to the issue of the economy. This applies to everything else across the board as well. And in the coming weeks, I think we are going to see her trying to strike that balance. She is going to be sort of that loyal soldier to President Biden. But in different ways, and I think in different policy areas, you're going to see her sort of picking and choosing the areas where she really leans in and support of certain Biden administration the policies and areas where she actually now starts to put some distance between herself and the work that the Biden White House and the administration has been doing depending on what is politically advantageous.

QUEST: MJ Lee is in Philadelphia, with a busy 24 hours ahead. I'm grateful.

Joining me now, Democratic strategist Julie Roginsky and the Republican strategist, Sarah Chamberlain.

Start with you, Sarah. Surely you have got massive big cudgel with which to hit metaphorically, I hasten to add, the Democratic ticket. And you know, she was there, Inflation Reduction Act, stimulus act, she helped inflation grow and now look at it. Now, there's a Kamala crash.

SARAH CHAMBERLAIN, REPUBLICAN STRATEGIST: Yes, you're absolutely right. Number one issue for (AUDIO GAP) country is the economy. The Biden economy is really lacking here. (AUDIO GAP) American people (AUDIO GAP). QUEST: All right. Julie, she can't run away from it.

JULIE ROGINSKY, DEMOCRATIC STRATEGIST: Well --

QUEST: I mean, she has no power over the Fed. She is part of every economic decision that has happened so far. This is her economy.

ROGINSKY: Run away from what? We've had one bad market day. Let's see what happens.

I mean, look, this could be -- this could be the beginning of something or it could be an anomaly because traders are on vacation, or it could be something in between. I mean, who knows? Who knows what the Fed is going to do?

I mean, for all we know, the Fed is going to come back and raise rates -- excuse me, lower rates even before they're supposed to this fall. Or they may wait, but we don't know.

I mean, look, Trump's -- the amount of times that the market crashed in the same way during Trump's time in office and then came back and then crashed and then came back and then again, if I recall, when the market jumped up like crazy a few months ago, Trump said, well, of course its because people know that I'm going to be president. That's why the market is doing so well.

So let's just call him down, all right? We've had one bad day so far. And who knows what's going to happen tomorrow?

Richard, you know, better than anybody else. The market, you know, that people can come in and start buying tomorrow, buying on the dip. And who knows?

QUEST: Right, but it's a valid point, this idea of being -- it will come on to who's likely to be the revised presidential nominee. But, but sorry, it's a valid point that the entire administrations record she is she can both. I'll give you both sides of it. She can both celebrated and claim it as hers, but can she win away from it?

ROGINSKY: Look, she can't run away from it. But if you want to look at the economy, the economy, we have the lowest unemployment rate we've had in ages.

QUEST: Right.

ROGINSKY: We've had the highest stock market even today. It's higher than it was when Trump was president. I mean, over and over and over again, all the economic indicators, inflation is way down after COVID.

[15:20:02]

So we, over and over and over again, were looking at economic indicators that are pretty good for Kamala Harris. And so, she not only should she not run away from it, I think she should embrace it.

QUEST: Now, on the other side, Julie, the way this goes forward, the ability and Sarah, I'm not sure we can hear you terribly clearly at the moment, we might be having a few problems with your with your line, but assuming we're not -- how would you play this out?

CHAMBERLAIN: As a Republican, I would (AUDIO GAP)

QUEST: Sarah, I'm going to interrupt you.

Forgive me, we are having a lot of difficulty hearing you. The sound is not good, so I'm going to ask technical team if we can reestablish links to you because it is quite difficult to hear you.

And while we do that, I'll stick with you, Julie, who's it going to be? Who would you really -- don't just throw your arms up, who do you think makes the best? And I promise you, we will not play this back afterwards if you get it wrong. It's not the nominee, who's the best for you?

ROGINSKY: I like Tim Walz for a number of reasons, which is not to say that I wouldn't take Kelly or Shapiro either, but I like Tim Walz because I think Tim Walz brings a Midwestern sensibility to this. I think he is a former -- as the same way the Mark Kelly as a former military guy. He is the governor of a state where I think the Midwest -- kind of encapsulates the Midwest to some extent. He's a former teacher. He's a former member of Congress. So he knows how to deal with being on the Hill, but he's also an executive and being a governor.

So I think this guy is kind of a great and firing in all cylinders, not to say that I don't think that is Josh Shapiro or Mark Kelly wouldn't be formidable too. And I'll be happy with whoever she chooses.

QUEST: The weirdest thing in this election cycle so far, this bear that RFK Jr., I mean, I suppose --

ROGINSKY: That's the weirdest thing?

QUEST: Well, no, just for today, just for today, I mean, we start off with this stock -- fine. So it there's a bit of road kill, but this business about dumping it in Central. I don't get it. I mean, what's going on?

ROGINSKY: I the sad thing is, I don't live too far from where he dumped that bear and I actually remember the story from about a decade ago. And now that I ever dwell on it too long, but the one that got stayed RFK Jr. as I still think vaccines are safer than eating daily roadkill, which is I think it was his first intent for this bear was. But I'm not so sure. I mean, what he was doing.

I mean, talk about the Streisand effect, talking about getting out front of it what he thought was a bad story that actually made it worse than he thought it was going to be.

QUEST: So glad you're with us. Thank you.

ROGINSKY: Thank you. QUEST: My apologies. We, of course, had a very poor connection with Sarah, which meant we weren't able to say with her. So that's why we didn't hear as much from that side and nothing more. Don't read into anything like that. Cock up, not conspiracy.

Coming up next, President Biden and Vice President Harris in the Situation Room. That's the began in the last hour is the rising tensions on the Middle East. We need to discuss that even more.

(COMMERCIAL BREAK)

[15:26:57]

QUEST: Warm welcome back.

In the last hour, President Biden has convened a meeting of his national security team as tensions continue to escalate in the Middle East. Iran is repeating its threat to retaliate after last weeks killing of the Hamas political leader, blaming Israel for the attack. And multiple U.S. officials across the Middle East and Washington telling us that retaliation is expected in the coming days. Who knows? It could be the next 24 hours.

Jeremy Diamonds is with me from Israel.

And it's awful to put it in these terms, Jeremy, but the scene seems to be set in some shape or form for an Iranian and arguably Hezbollah and others attack towards Israel. That could be multi-day nature.

JEREMY DIAMOND, CNN CORRESPONDENT: Very possible, Richard, and it certainly is a waiting game at this point, but amid that waiting game, there is a lot happening on the one hand, you have diplomatic activity across the region trying to avert that Iranian attack. Those efforts don't seem to be successful, but they're also trying two at least ensure that what follows will not escalate into an all-out regional war.

So we've seen diplomats crisscrossing this region. At the same time, what we are witnessing here in Israel is first of all, civilians kind of going about their life as usual, there has been no change yet in the home front command guidelines to civilians to tell them to limit large gatherings or remain in near shelters. Although there have been some guidelines issued by different municipalities like Haifa, where we are now instructing civilians to make some preparations, at least.

There is also a lot of military activity. The military is on very high alert here, preparing not only for that massive air defense effort that might be required, but also beginning to examine a potential retaliatory scenarios. We know that the Israeli military's top general was reviewing potential of responses that they could deliver should Iran attack.

So there is a lot of activity, a lot of preparations being made and also efforts to revive that international coalition that helped defend Israel against those three-hundred Iranian missiles and drones back in April. That's part of why you're seeing General Kurilla, the top U.S. general in the Middle East, visiting the region, visiting Israel today, trying to reassemble that coalition in anticipation of a potential Iranian attack.

QUEST: So let's talk about where wants and how the U.S. would see is its obligation towards Israel to assist. Now obviously, if it's existential, then that's a completely different matter. But at what point -- where does the U.S. draw the line of further direct assistance to Israel?

DIAMOND: Well, it certainly seems clear that the U.S. is prepared to do what it did back in April, which is to help shoot down Iranian drones and missiles headed for Israeli territory. We also know that they have made preparations to evacuate civilians from Lebanon.

[15:30:01]

Should that become necessary in terms of an actual military noncombatant evacuation?

The question of U.S. troops actually entering the theater, engaging in combat, I think is a very far away notion. There is no so indication that that is in the offing. But I think the most critical role is going to be helping with that air defense effort and as I said with General Kurilla is doing in the region which is trying to reassemble that coalition that includes several Arab countries to ensure that they also help with radars and with aerial defense in the event of an all-out barrage.

QUEST: Jeremy Diamond, it's late in the evening for you, thank you, sir.

The prime minister of Bangladesh has resigned weeks after deadly anti- government protests left many dozens of people killed. Demonstrators stormed the official residence of Sheikh Hasina, in the capital Dhaka. And she has now reportedly fled the country. The army chief said, the military is forming an interim government. People are taking to the streets to celebrate her resignation.

Hanako Montgomery reports.

(BEGIN VIDEOTAPE)

HANAKO MONTGOMERY, CNN CORRESEPONDENT (voice-over): Forced out of office, Bangladesh's Prime Minister Sheikh Hasina in a dramatic resignation Monday after weeks of deadly anti-government demonstrations. Thousands of jubilant protesters stormed her official residence and scenes aired on local TV. Chairs, tables, and televisions looted from what was one of the most protected buildings in the country.

WAKER-UZ-ZAMAN, BANGLADESH ARMY CHIEF: I have given orders. The army will not fire at anyone. The police will not fire at anyone.

MONTGOMERY: The country's army chief, Waker-uz-Zaman, now calling for the same students who brought about his seen his downfall to help them maintain peace, and announcing that an interim government will be formed by the military.

It came after anti-government protesters were attacked in the capital Dhaka on Monday, according to a CNN fixer in the city.

Dhaka is a battleground, that's how one witness described the chaotic scenes on Sunday as tens of thousands of protesters took to the streets, some wielding sticks and knives, demanding Hasina's resignation. Dozens of people were killed on Sunday alone in a resurgence of protests that have spread nationwide with violent clashes erupted between demonstrators, police, and ruling party supporters.

Rallies that began last month over quotas for civil service jobs have escalated into widespread fury with protesters demanding Hasina and her ministers be held accountable for the rising death toll. Protests began in July, led by students angry over hiring rules that would reserve more than half of civil servant positions which are highly prioritized for select applicants. Students said its discriminatory system that would cut down on job opportunities in a workforce where an estimated 18 million young people are unemployed.

In the clashes that followed, at least 150 people were killed, thousands injured, and about 10,000 arrested a military enforced curfew and a mobile and internet blackout attempted suppress protests, as well as the ruling by the country's Supreme Court to reduce the quotas.

But public anger has only intensified with protests returning in recent days.

UNIDENTIFIED FEMALE (through translator): It wasn't possible to stay at home anymore. Everyone is on the street. Many people who are younger than are no longer with us. They've been killed.

MONTGOMERY: Hasina blamed her political rivals for the unrest, saying the main opposition party and other adversaries infiltrated the student movement. The human rights groups have accused authorities of using excessive force to stifle dissent and curtail civil liberties in the past.

Now, Hasina's 15 straight years in power are over. The student movement celebratory. But what next for the country now under military rule is uncertain.

Hanako Montgomery, CNN.

(END VIDEOTAPE)

QUEST: Now to the United Kingdom, violent protests fueled by far-right groups intensified over the weekend. In Northern England, protesters vandalized and set fire to two hotels that are being used to house asylum seekers. They smashed windows and attacked the police. More than 370 people have been arrested since Saturday.

The British Prime Minister Keir Starmer has condemned the violence, calling it in his words, far-right, thuggery. CNN's Nada Bashir joins me from Rotherham in northern England, one of

the places at the center of the unrest this weekend.

As I listened and watched over the weekend, it didn't seem as if the authorities have got a handle on this yet. How -- what's your reporting?

NADA BASHIR, CNN CORRESPONDENT: No, absolutely, Richard. And in fact, what we're hearing from far-right groups on social media is further cause for yet more riots across even more cities in the United Kingdom, including in the capital London.

[15:35:05]

So, there have been calls for them to mobilize once again throughout the weekend that will be a huge concern for the government despite these statements that we've been hearing from ministers as well as, of course, the Prime Minister Keir Starmer, who spoke earlier today.

He chaired an emergency COBRA meeting. He said that the government would be using the full force of the law to prosecute those involved in these far right riots. But again, while the situation here is calm, this is one of the hotspots, of flashpoints. Just yesterday, one of the hotels targeted by these far rioters, violent and racist attacks, damage caused to the building, at one point, they tried to torch the building behind me.

And this is the concern. This is the worry for Britain's minority and ethnic communities is the potential for these riots to continue to spread. Take a look.

(BEGIN VIDEOTAPE)

BASHIR (voice-over): Violent clashes in the northern English town of Rotherham. Far right rioters among hundreds across the country seen here, facing off with police the targets their rage -- this hotel reportedly housing asylum seekers.

Like many hotels across the country, this hotel behind me had become a vital shelter for asylum seekers coming to the country many of whom have fled war and persecution at home, including countries such as Afghanistan, Syria, and Sudan.

This should have been a safe haven for them, but instead, over the weekend, this became the target of violent and racist attacks by far rights rioters. You can see behind me, the smashed windows have now been boarded up at one point why it is even attempted to torch the building. And this is just one of several locations across the country that have been targeted by these far-right rioters.

Britain's home secretary, Yvette Cooper, has pledged swift action to bring perpetrators to justice with hundreds said to have already been arrested and police warning that their search for those involved will continue.

LINDSAY BUTTERFIELD, ASSISTANT CHIEF CONSTABLE, SOUTH YORKSHIRE POLICE: Please be assured if you were there, we will find you and you will be held accountable for your part in yesterday's violence.

BASHIR: Violent, anti-immigration riots have been sweeping across the country in the wake of the horrific killing of three young girls in Southport. Six-year-old Bebe, 7-year-old, Elsie, and 9-year-old Alice stabbed to death while at a dance workshop in late July.

While the tragedy brought members of the local community together in mourning, a troubling disinformation campaign centered around false claims that the attacker was an immigrant has been seized on by members of the far right, drawing condemnation from the country's prime minister.

KEIR STARMER, BRITISH PRIME MINISTER: If you target people because of the color of their skin, or their faith, then that is far-right.

BASHIR: With renewed calls for further riots across the country this week, there is growing concern for the safety and security of Britain's minority and ethnic communities.

The home office, announcing on Monday that mosques in the U.K. will be offered greater protection with new emergency security, but this latest spate of violent racism and in some instances, Islamophobia, has also inspired others to take a stand.

Including in Lancaster, another flashpoint for anti-immigration riots and in Hull where dozens of volunteers arrived with broomsticks and trash bags ready to clear up the debris in the wake of this weekend's unrest.

NADIDE BALMER, HULL RESIDENT: If people are going to bring 200 people out to incite here, we're going to bring 20,000 out to incite good.

BASHIR: But it remains to be seen whether cooler heads will prevail as the government ramps up, efforts to crack down on rioters, and the country braces itself to get move violence.

(END VIDEOTAPE)

BASHIR (on camera): And, Richard at this stage, authorities say more than 370 rioters have been arrested so far. Some even appeared in court already this morning, but the police are continuing their efforts to locate those all involved over the weekend. And of course, they will be given close eye on what transpires out the rest of the week, as I mentioned, continued called for yet more riots across the country -- Richard.

QUEST: Nada in Rotherham, thank you.

We have breaking news to bring to your attention. Rolling in an historic antitrust case against Google and its bad news for Google. A federal judge in Washington says the tech giant is violating antitrust law in the way it's using its search engine.

Google spends billions of dollars on exclusive contracts, maintaining its role as the world's default search engine. Now a judge has those contracts illegally blocked out potential competitors, and in a brief rebuke says, Google is a monopolist.

[15:40:08]

The ruling almost certainly will be appealed because it has the potential to reshape the tech industry, impacting lawsuits, not just against Google, but also including Apple, Amazon and Meta.

As you and I continue together, the U.S. gymnastics superstar Simone Biles had her final competition at Paris. Will she able to end on a high note and add to the medals stockpile.

(COMMERCIAL BREAK)

QUEST: The most decorated American gymnast can perhaps get off our balance. It was a disappointing fall on the balance beam that left her off the podium for the individual beam the final. Simone Biles ended with a sil -- Olympics with silver on the floor.

In the first place was Brazil's Rebeca Andrade, who you see here with her arms in the air, Biles and bronze medalist, Jordan Chiles bowing to her playfully during the medal ceremony.

Biles recounted the special podium moment.

(BEGIN VIDEO CLIP)

SIMONE BILES, U.S. OLYMPIC GYMANST: She's queen and first, it was an all-Black podium. So that was super exciting for us. But then Jordan was like, should we bow to her? And I was like, absolutely. So, we're like are we going to do it now? And then that's why we did it.

But she is -- she is such an excitement to watch and then all the fans in the crowd always cheering for her. So it just -- it was just the right thing to do.

(END VIDEO CLIP)

QUEST: Today, silver medal is Biles' fourth of this year's Olympics, 11th overall, including seven goals. It makes her the most decorated Olympic gymnast of all time.

Coy Wire has been tracking it all.

And look, I have to say, forget the medals which are important, but forget the medals, looking at that picture and just feeling the respect that the competitors have for each other and the dignity.

[15:45:03]

Simone Biles is absolutely the epitome of sportswomanship and grace and elegance in all, in all ways.

COY WIRE, CNN SPORTS CORRESPONDENT: Richard, it's such a good point and a poignant one because remember, gymnastics back in the day, it was pretty cutthroat if you would. I mean, they were stone cold, they would not really talk to each other or interact. They -- even there's a famous movie quote, whereas like this is not gym-nice-tics. All right?

So they were very savage competitors, but we are seeing it totally different era now into your point, its lead in large part by Simone Biles and that moment came after, remember, the floor routine, but before that, she missed out on meddling completely on the beam today. So for her to have that awareness and to put herself for own ego, her own medals to the side and share that moment, Andrade's moment, who by the way, was cheering Simone on the whole time, it's an incredible, remarkable thing.

I caught up with Suni Lee just a bit ago. Another one of Team USA stars who is going home with three metals and I asked her, Richard, what she thought that moment presented. Listen.

All right, well get to another one here. Richard, I apologize for that. Suni Lee just said it just shows how far this sport has come.

Now I do want to talk about American swim star Caeleb Dressel, though, because he, too, is going home with more medals, three more Olympic medals, and he was full of smiles, Richard, when he came up here on a rooftop of our WBD house studios, after what may have been his last ever Olympics, he is embracing the moment. He is also heartbroken after missing out on the final for one of his best events earlier in the games.

I asked him Richard how tough an intense these moments can be for these athletes. Listen.

(BEGIN VIDEO CLIP)

CAELEB DRESSEL, 9-TIME OLYMPIC GOLD MEDALIST: You train whole life first the race boils down to a couple of seconds. Yeah. And then when its over, it's over, so it's devastating, it's heartbreaking. You put all that effort to something and you want a different results, and then, all of a sudden, there -- there's guys that are better than you on that day.

And there's nothing you can do about it. So yeah, I was -- I was heartbroken. I needed -- I needed to cry.

WIRE: Yeah.

DRESSEL: And I'll probably have a couple when I get home, reflecting on the me and then hoping it'll subside and I can enjoy, enjoy my friends, my family when I get home.

(END VIDEO CLIP)

WIRE: Now, Caeleb went on to win two more goals here, Richard, making nine career Olympic golds, tiny with Carl Lewis, Mark Spitz, and Katie Ledecky for second most of any American ever. So is the joy of victory, the agony of defeat on full display here. But as you can see there, using their platform to spread messages

about positivity, about, hey, it's okay not to first. It's okay. Okay to be full and show your emotions.

QUEST: Coy Wire, it's okay to have the bottle of Bordeaux tonight for dinner when you finish. Send me the bill. Maybe not.

All right. Thank you, sir.

At least four people are dead from what is now Tropical Storm Debby. It's made landfall as a category one hurricane, but millions of Floridians and Georgians under tornado watch, huge amounts of rain.

CNN's meteorologist Chad Myers is with me.

How bad is this going to be and where's it headed?

CHAD MYERS, AMS METEOROLOGIST: You don't hear the National Weather Service of the United States say catastrophic, historic, life- threatening very often when it comes to just a -- just a 85 mile per hour, about 130 kilometer per hour hurricane. And it's not the wind that really were have a problem with. And yes, we have four people dead mainly because of falling trees.

We've had a half a meter of rainfall on those tree roots. Of course, those trees are going to fall. The wind is coming down to a little bit right now, about 100 kilometers per hour, but its going to stick around. This location right here, is Wednesday, that's 48 hours from now, you could almost walk there in the same amount of time.

This storm will be crawling in the heat of the day. The afternoon, we can get tornadoes on the ground from these land-falling hurricanes. If we had one, I zoom in and you would see a purple box, let's see what happens here, because this is all just life.

No, no tornado warnings right now. But see this area near Lake City flash flood, emergency going on there every, every word that you see purple, Richard, you're looking at 30 to 50 centimeters of rainfall, somewhere greater than 10 to 15 already on the ground. This is what has already fallen, and we have more rain in the forecast a little bit farther to the north on up into Georgia and South Carolina into the Lowcountry of South Carolina.

And when I say Lowcountry, that's not a good place to be in a flash flood, Richard. It's low for a reason.

QUEST: You're going to be following closely. And I'm grateful for you. Thank you, sir.

Minutes away from the closing bell at the New York Stock Exchange, and we'll update you on where we stand pretty much. No, no, that now -- the Dow is sort of taking a bit of a tumble again.

[15:50:02]

Yep. All right. After the break, we'll get into more details.

(COMMERCIAL BREAK)

QUEST: Heading towards the close, and we're just down once again. We've taken a bit more of a tumble.

Allison Morrow is with me to put this in perspective.

A lot -- I mean, I suppose the good part is we haven't gone further down, there is still eight minutes and we've held the line, if you will, after the initial shock. So it really all depends on what comes next.

ALLISON MORROW, CNN BUSINESS SENIOR WRITER: Yeah. I think there's a growing consensus that the market might have had a bit of an overreaction this morning in response to, you know, the Nikkei in Japan, took a 12 percent dive and that was quite scary for a lot of investors, especially those who've been using Japan's free cash, essentially, to buy U.S. based assets.

And so, a lot of those trades are getting unwound now. And that's causing kind of a contagion effect, if you will. So, I -- you know, I don't have a crystal ball. I can't tell you when the market is going to bottom out, but things do seem to be holding the line a bit now.

QUEST: As it holds that line, in a sense, I mean any action by the Fed before September is actual regular meeting would be a panic move.

MORROW: I think so. And that seems to be the consensus of people, analysts and economists who I've spoken to, you know, the Fed wants to have a steady hand and I think doing an emergency cut isn't really in the cards for them.

QUEST: And I -- I mean, you're right. Twelve percent was dramatic in Asia, and we'll see how things here.

I'm grateful to you, Allison. Thank you very much --

MORROW: Thank you.

QUEST: -- for joining us. There we go. That's Allison Morrow.

And in just a few moments, I'll have "QUEST MEANS BUSINESS" for you at the top of the next hour. We will start suitably with the closing bell on Wall Street and as the program goes on, we'll develop further into what it's likely to be, how bad it's likely to get, a look at all the ramifications. That's likely to happen in terms of the Federal Reserve, and its moves.

I'm in for Jim Sciutto today. I'm very grateful that you stuck around and we'll be together for the next hour because the news never stops. Neither do we. This is CNN.