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Asian Markets Rebound, Nikkei Jumps Over 10 Percent After A Crash Into Bear Market. Middle East Braces For Iran And Its Allies' Retaliation; Protesters Who Toppled Hasina Want Nobel laureate Muhammad Yunus To Lead Bangladesh; UK's Starmer Vows 'Swift Criminal Sanctions' For Rioters. Harris Expected to Announce VP Pick. Why Some Israeli Soldiers Refuse to Return to Gaza; Historic Rainfall, Flooding Expected Across Southeastern U.S. Western Norway Could Experience Devastating Tsunam.; Highlights from Day 10 of the Paris Olympics. Aired 1-2a ET
Aired August 06, 2024 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
JOHN VAUSE, CNN ANCHOR: Hello, everyone. I'm John Vause. Coming up here on CNN Newsroom.
After Monday's historic plunge, now comes the rebound. Stocks in Tokyo up 10 percent and higher across the region.
(BEGIN VIDEO CLIP)
ANTONY BLINKEN, U.S. SECRETAR OF STATE: All parties must take steps to ease tensions.
(END VIDEO CLIP)
VAUSE: The chasm between must do and are doing. Iran prepares to strike Israel, while the Israeli military reportedly recommends a preemptive strike on Iran.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This is violence. It is not protest. It doesn't matter what the motivation is.
(END VIDEO CLIP)
VAUSE: Well, actually, it's all about the motivation with the worst unrest in the UK in years driven by misinformation and demonizing of migrants.
UNIDENTIFIED MALE: Live from Atlanta. This is CNN Newsroom with John Vause.
VAUSE: We begin again this hour the Tokyo Stock Exchange, where the Nikkei surged at the opening up at one point more than 11 percent now around 8 percent higher, calling back almost all of Monday's historic 12 percent plunge. The biggest one day fall for the Nikkei in percentage terms since October 1987, the biggest point drop in history.
And across Asia, markets are higher. Will this rally though in Asia carry through to a rebound on U.S. markets after the Dow closed down more than 1,000 points Monday, it's worth percentage loss in nearly two years. The NASDAQ closed down 576 points, or 3.4 percent after a big sell off in companies involved in artificial intelligence, like NVIDIA, Apple, Microsoft, according to some analysts, expectations for an AI global revolution may be a little premature. AI profits are basically nonexistent right now.
But for the very latest, let's go live to Tokyo, CNN's Hanako Montgomery standing by. Not exactly unexpected the bounce, but still very much well received at this point, that it looks like the fundamentals of the economy are okay. This is not a route.
HANAKO MONTGOMERY, CNN CORRESPONDENT: Yes, John, you're exactly right. You know, it was a huge surprise yesterday when we saw the Japanese stock market decreased significantly. The value of the stock market dropped very, very suddenly, and now we've seen it recover somewhat just the very next day, but experts are warning me that the markets will likely remain very volatile until September, when the U.S. Federal Reserve is expected to make rate cuts.
Now the reason why we've seen the Japanese stock market get some more momentum and make some more traction just a day after those massive, massive drops in value is really twofold. The first is because we received better than expected service sector data from the United States for the month of July, which has eased some concerns about a potential recession in the world's largest economy.
Now, the second reason is because the value of the yen has steadied a bit and has dropped after that massive surge we saw just yesterday. Recently, we've seen a lot of movement for the U.S.-Japan rate, largely due to the fact that the Bank of Japan raised interest rates for the second time in 14 years.
Now the interest rate is at 0.25 percent which sounds very low, and it is very low compared to many other countries around the world, but Japan has said it needs to raise this interest rate to prop up the value of its currency.
Over the last year or so, we've seen the value of the Japanese yen decrease significantly against the greenback, and that's been very costly for many imports. It's raised the prices for the imports of fuel, of food, and Japan has said it needs to prop up the value of its currency, so it raised those interest rates again.
But the sudden increase in the value of the Japanese yen has really spooked investors and hedge funds, which led to a selling spree. But now that the rate exchange between the U.S. dollar and the Japanese yen has steadied a bit, it's now trading at 146 yen to the dollar, we're now seeing some deep breaths and also some easing there. And again, it looks as though the markets will remain very volatile until September, John, but again, some positivity here about markets, John. VAUSE: Markets go up. Markets go down. See what happens. Hanako Montgomery there in Tokyo. Thank you.
Rana Foroohar is CNN global economic analyst as well as global business columnist and associate editor for the Financial Time. It's good to see you.
[01:05:00]
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Hey, great to be with you.
VAUSE: OK, so markets in Tokyo rebounded when trading began Tuesday, and across the region, stocks opened higher. Is that a sign that maybe the big sell off on Monday was bit of an overreaction? And what does it actually say about U.S. markets?
FOROOHAR: Yes, for sure. I mean, you know, listen, I've been saying for the last day that I think this was an overreaction. You know, this was a predictable unwinding of the yen carry trade as the interest rate environment changed. You've got the disappointing jobs numbers on Friday. You had a market that was, frankly, ready to blow off some steam at any given point. You got some bad news from tech companies or, you know, not even that bad, but just a few bad data points, and markets are jittery.
I mean, they know we've had it pretty good for a pretty long time, and that some stocks are overvalued. And so I think this kind of correction is pretty natural.
Now, if we go into the fall and we see another bad jobs reporter, we start to see some other data that really says, hey, there's something amiss on Main Street. Then I would be much more worried. But this is really, to me, a kind of a predictable, August market correction, slash blip.
VAUSE: Yes, among the reasons you touched on this for the sell off Monday, fears that the Federal Reserve in the U.S. getting interest rates too high for too long. So here's the Fed chair Jerome Powell.
(BEGIN VIDEO CLIP)
JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: 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.
(END VIDEO CLIP)
VAUSE: What he say?
FOROOHAR: He says that it's no longer if we're going to cut rates. It's probably when we're going to cut rates. And I think that what this means is that, you know, they're looking at September, maybe a quarter point, they're realizing that, OK, maybe they're a bit behind the curve, and it's time to act. We're not going to see an emergency meeting. We're not going to see, I don't think, a half percentage point rate cut, unless something else really dramatic happens between now and then.
VAUSE: Yes, and we touched on the recession factor. You know, apart from a very brief recession, the V shaped one back in 2020 during the pandemic, the U.S. economy has not seen a true recession in 15 years. And one analyst noted, this seems like an overreaction, especially given the limited economic data and fed communication expected this week.
So, you know, the word from there is, you know, just chill baby chill.
FOROOHAR: Totally. And I mean, I think you're making the really key point here, which is that we are due for a slowdown. And, you know, they used to come recessions and recovery cycles used to come about every seven or eight years, stretching out to 15 years, with a lot of quantitative easing, a lot of easy money, both after the financial crisis and after COVID has started markets to a certain extent, and there's, you know, going to be a price to be paid for that hopefully won't be too big. I'm not selling. I'm sitting tight. And you know, we'll see what happens in the fall.
VAUSE: Well, the twice impeached, four times indicted, convicted fella, former and wannabe president, Donald Trump weighed in on the market sell-off. Voters have a choice, Trump prosperity or the Kamala crash in Great Depression of 2024. Wow. Not to mention the probability of World War III if these very stupid people remain in office. Remember, Trump was right about everything. Make that note.
A trillion dollar corporate cut during his administration did a lot to fuel the race markets. Here's Neil Cavuto, a rare voice of reason over at Fox News.
(BEGIN VIDEO CLIP)
NEIL CAVUTO, FOX NEWS HOST: The Donald Trump thing in the market amazes me. When they're up, it's all because of him and looking forward to him when they're down. It's all because the Democrats and how horrific they are. Yet some of our biggest point fall-off. Three of the biggest of the top 10, occurred during his administration. A lot of those were in the COVID years. I get that, but you know, you either own the markets or you don't.
(END VIDEO CLIP)
VAUSE: Yes, it's the old rule, you know, if you take credit for the sunshine, then you get blamed for the rain. At least you should. And it's also important that the stock market is not the economy.
FOROOHAR: 100 percent. I mean, I, you know, it always amazes me when presidents get the blame or take the credit. I mean, they really don't deserve that much, if anything, it's the Fed that deserves more blame more credit.
But you're absolutely right. The markets are not the economy. We forget that because we have been in a bull market for so long. But, you know, we live on Main Street. Most people get most of their money in a paycheck, not through stocks, and it's a good time to remember that.
VAUSE: Rana as always. Great to see you. Thanks for being with us.
FOROOHAR: Great to be with you.
VAUSE: Well, the head of the military in Bangladesh reportedly scheduled to meet student protest leaders in less than an hour from now, after the military announced plans to form an interim government following the resignation of the prime minister who fled the country Monday, after weeks of protests which left hundreds dead.
[01:10:03]
According to state media, the President says all detained protesters and opposition leaders will be released. CNN's Christie Lu Stout joins us now live in Hong Kong with more. The White House has actually praised the army in Bangladesh for its behavior showing restraint, also urging this interim government to quickly hold fresh elections.
Is this likely to be enough to satisfy the student protest leaders, because they had their own person in mind to lead this interim government?
KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, absolutely. They are not satisfied, and they continue to be defiant, and John, we have just learned about the current whereabouts of Sheikh Hasina, the Prime Minister, or former prime minister of Bangladesh who was forced to flee her country. We have learned that Hasina is in India, that she is near New Delhi after fleeing Dhaka on Monday.
The former prime minister is believed to be in a quote safer house. That's according to a senior official from the Foreign Ministry of Bangladesh.
And students in Bangladesh, they remain defiant after she resigned, after her exit from the country and after the army chief said that an interim government would be formed, a student protest leader in Dhaka spoke to CNN saying that the next step here is to, quote, abolish the fascist systems forever, unquote, as student protest organizers are now calling for an interim government in their terms, under Mohammed Yunus, the Nobel laureate. I want to play, and let's share their video message. Watch this.
(BEGIN VIDEO CLIP)
MUHAMMAD ISLAM, ORGANIZER, STUDENTS AGAINST DISCRIMINATION (through translator): We have given our blood. We have been martyred. Our vision of forming a new Bangladesh will now have to be realized.
(END VIDEO CLI)
LU STOUT: Dramatic language there from student organizers of the protests in Bangladesh. And meanwhile, the president of Bangladesh is promising to consult everyone on an interim government, and also announced the release of detained student protesters as well as the detained opposition leader.
Now, after the Prime Minister fled, and again, she is now believed to be in a quote safer house near New Delhi in India, after she fled, huge crowds took to the streets in Dhaka. We have this aerial video that we want to share with you, this drone video where you can really see the scale of the protest and the reaction. Massive numbers of protesters hitting the streets of Dhaka, shouting slogans and marking and for many of them, rejoicing in the moment.
Now, thousands also stormed the Prime Minister's official residence, and in this video, lined up for you, you could see quite a number of them breaking into and vandalizing the inner chambers of what was once a highly protected compound.
Now all this turmoil, it comes after some of the worst violence that this country has witnessed in decades. Earlier, on Monday, as reported on CNN, armed forces opened fire on government protesters in the capital. Last month, it was been reported that some 150 people were killed during protests and deadly clashes, and all this began last month when students they wanted an end of this controversial quota system for government jobs, and that protest then spiraled into this wider campaign to oust the Prime Minister.
Now Sheikh Hasina as her grip on power ended on Monday, after weeks of deadly protests. She is now in India. This was an event that has sent shockwaves across the region and around the world. Back to you, John.
VAUSE: Just explain how this started, because it was essentially over quotas, government quotas, which then basically went from, you know, it's so typical of what happens in so many places. Essentially protests about a government policy that were initially peaceful. There's a crackdown, you know, an over the top crackdown, an outsized crackdown, which leads to deaths, hundreds of deaths, and then before you know it, the leader of the country is on a plane to another country.
So what happened here, physically, in Bangladesh?
LU STOUT: This was a youth protest. Some are even calling it Generation Z protests that eventually forced the Prime Minister, not the former prime minister to flee, and she's now in that quote, safer house near New Delhi in India.
Remember that young people in Bangladesh, and they were protesting against this controversial quota system for government jobs. They deemed that unfair. Young people in Bangladesh make up some 1/5 of the total population of that country, and these young people are confronted with sky high unemployment rates. In fact, nearly 32 million of them are not in work. They're not in school, being deeply unsatisfied with the situation of the economy in Bangladesh, but the direction that the country was taken, especially after four consecutive terms by the former prime minister, Sheikh Hasina, and that is what led to the scenes that you see here on your screen. That is what led them to take to the streets, to challenge the
government and lead to where we are today, where we are waiting to see what this interim government is going to look like with the former Prime Minister now fled and in neighboring India, no longer in Bangladesh. Back to you, John.
VAUSE: Kristie, thank you. Kristie Lu Stout with some really latest news and some background. Thanks, Kristie.
[01:15:05]
With Iranian strike on Israel expected soon. The U.S. now reporting a rocket attack on the Al Assad Air Base in Iraq, which injured a number of U.S. personnel. The Pentagon says Iran-aligned militia are responsible, calling the attacker, dangerous escalation damage assessments are still underway.
Meantime, the White House released this photo of the President, Vice President and Secretary of State, being briefed in the Situation Room, as well as discussing measures to defend U.S. forces in the region, as well as supporting the defense of Israel.
They also talked about efforts to lower regional tensions. Intense diplomacy has been underway for days now to try and prevent an attack by Iran, which could lead to a wider war. For now, though, how and when Iran will actually strike Israel remains unknown, but the Iranian foreign ministry stressed Monday, Tehran is determined to deter Israel, and no one should doubt its resolve.
(BEGIN VIDEO CLIP)
NASER KANANI, IRANIAN FOREIGN MINISTRY SPOKESPERSON (through translator): In using its inherent right based on the principles and rules and regulations of international law, the Islamic Republic of Iran will definitely take serious and deterrent action with strength, determination and firmness in ensuring security and punishing the aggressor.
(END VIDEO CLIP)
VAUSE: Two days now, Iran has talked about retaliation after Israel allegedly targeted the Hamas legal chief Ismail Haniyeh, who was assassinated in Tehran last week. Israel has not claimed responsibility for the killing.
We'll take a short break, when we come back. British new prime minister facing his first crisis as violent far-right protests sweep the country, more on the steps he's promising to take to try and bring the unrest under control.
(COMMERCIAL BREAK)
VAUSE: Britain's newly elected prime minister says a standing army of police will be deployed to end violent protests which have swept the country. This is the first major crisis Keir Starmer has faced since taking office. On Monday, he held his first emergency response meeting, known as
Cobra for about a week now, far-right nationalists have used the deadly stabbing of three young girls in Southport, England to spread anti-immigrant and anti-Muslim disinformation. The Prime Minister says it's nothing more than violent organized thuggery. Elliott Gotkine has more details now,
(BEGIN VIDEOTAPE)
ELLIOTT GOTKINE, JOURNALIST (voice-over): A weekend of violence on the streets of Britain, the fallout of a deadly stabbing attack in northwest England a week ago and false rumors linking the crime to an asylum seeker.
Anti-immigration groups surrounded two Holiday Inn hotels housing asylum seekers. In Rotherham, an estimated 700 people gathered, throwing objects at police, setting fires and smashing windows to try to enter the hotel. At least 10 police officers were reported injured.
In Middlesbrough in North East England, more than 40 people were arrested after protesters clashed with police. Local residents defended a mosque.
SAEED AHMED, MIDDLESBROUGH, ENGLAND RESIDENT: And we want to show the rioters, which is predominantly, perhaps like the far-right fascist people, that they want to spread hate crime and we want to protect our Islam. OK, we want to protect our mosques.
GOTKINE (voice-over): There were also counter protests in multiple cities, including Weymouth and in Nottingham, some chanting Nazi scum off our streets.
KEIR STARMER, BRITISH PRIME MINISTER: We've seen Muslim communities targeted attacks on mosques, other minority communities singled out Nazi salutes in the street. I won't shy away from calling it what it is, far-right thuggery.
GOTKINE (voice-over): The protests erupted last week after misinformation spread in the wake of a violent attack in the seaside town of Southport, northwest England, three little girls were stabbed to death, others were critically injured during a Taylor Swift themed dance class. Rumors spread that the man responsible was a Muslim asylum seeker.
To try to calm the violence, the police named the 17-year old suspect as Axel Muganwa Rudakubana, born in the Welsh capital Cardiff, two Rwandan parents. He's been charged with three counts of murder and 10 counts of attempted murder. He's expected to enter a plea at his next court date in October.
News that the suspect was British born did not calm the protests. Prime Minister Keir Starmer issued a warning to those involved.
STARMER: Be in no doubt those that have participated in this violence will face the full force of the law. GOTKINE (voice-over): Officials said extra lawyers are being deployed
to work around the clock to process all those arrested. And Starmer, a former Director of Public Prosecutions himself, is now facing an early test of his leadership, as his Labour government comes under pressure to quell the violence quickly and address the deeper problems of social division driving the unrest. Elliott Gotkine, CNN, London.
(END VIDEOTAPE)
VAUSE: CNN European Affairs commentator Dominic Thomas joins us live from Los Angeles. Welcome back.
DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Thank you, John.
VAUSE: So well the U.K. has a new prime minister. It seems he's now facing what is essentially an old, long running problem. He's more now from Keir Starmer.
(BEGIN VIDEO CLIP)
STARMER: Whatever the apparent motivation, this is not protest. It is pure violence, and we will not tolerate attacks on mosques or our Muslim communities. So the full force of the law will be visited on all those who are identified as having taken part in these activities.
(END VIDEO CLIP)
VAUSE: Absolutely, to the last part of that, but to the first part, whatever the apparent motivation is, that's the crux of the problem here. It's essentially anti-immigrant protests who like misinformation, government policy and racism.
THOMAS: Yes, you're absolutely right, John, that's the key here, and it's built around myths, false narratives and lies about immigration, about jobs and criminality, and the impact on health care and social media has amplified that.
But as you know, in the U.K., many of the newspapers, I think, share a responsibility in this, as do politicians who have amplified these questions as well. And what we're essentially seeing is a kind of scapegoating and othering of sections of the population, whether they be Muslims or migrants and so on. And what this has the effect of doing is essentially distracting from the very real issues that are impacting people in British society today. John.
VAUSE: And you mentioned the newspapers and conservative politicians as well. Back in May, a former minister within the Conservative government, Andrea Jenkins, described U.K. immigration policy in these terms. For too long, the U.K. has been seen as a free lunch, study, work, marry, or smuggle your way in, and soon you're guaranteed a lifelong or you can eat buffet for you and your extended family.
That may hit all the sort of right political points from, you know, the right-wing point of view, but it also does a lot to reinforce prejudices, and doesn't do a whole lot to diffuse the situation. And yet, this is a former minister within the government. THOMAS: Yes, well, unfortunately, John, you know, within that particular government, as a whole succession of home secretaries, made analogous kind of comments talking about an invasion and so on. What we have here is obvious prejudice. I mean, it's racist, it's migrant phobic. And once again, the thing is, what it ignores. Of course, it presents migrants essentially as takers, rather than talking about, first of all, the very long history and incredible contribution that immigration has made to British society.
But the other aspect of it, and I think this is really the important sort of component of it, is the prejudice is not based on fact. And the fact is that the majority of people who enter the U.K. do so legally. They are students. They are workers. There is a labor shortage, which actually has been exacerbated, ironically, by Brexit across many sectors of U.K. society. And actually asylum seeker numbers are done so these politicians, along with newspapers, along with social media campaigns and so on, should. Bear a tremendous responsibility for what we see unfolding in the U.K. today.
[01:25:03]
VAUSE: And social media in particular, was singled out by the interior minister Yvette Cooper as being rocket fuel for spreading misinformation. Here's a little more from the minister.
(BEGIN VIDEO CLIP)
YVETTE COOPER, BRITISH INTERIOR MINISTER: There are also obviously issues around social media and social media act it is really a rocket booster behind both the spread of misinformation and also the organization of this violence. Social media companies need to take some responsibility. We also need to make sure that criminal activity online is being pursued. And I think it's really important that none of us forget this minority of thugs do not speak for Britain.
(END VIDEO CLIP)
VAUSE: They may not speak for Britain, but they do speak for a fairly big part of the country. And this is a fair enough debate to have a sensible, logical debate about how many people is a suitable number of, you know, what level of immigration is right for the country. Obviously, if you have it in a sensible, calm fashion, without the prejudices and the racism.
But this has been going on since Brexit, or even before Brexit. Brexit was essentially a referendum on immigration, and the far-right one.
THOMAS: Yes, and you're absolutely right. Well, over 15 years, you know, certainly the particular question of immigration has been key to U.K. politics. Is not a debate, not an election, in which this is not a central subject.
And you're right that around Brexit, the number one issue, the number one question that shaped the leave though, was the question of immigration. The question of social media is important. These are global, transnational organizations that operate in the national sector and have an impact to shape elections, politics, policies and so on. And clearly, regulation is needed there.
But what needs to change here dramatically is this particular narrative and the myth making that are driving these individuals into the street who have been led falsely. It's important to say, falsely to believe that the immigration question is a problem first of all, and that it's not being dealt with, and that therefore they see themselves as taking the law into those into their own hands.
And that particular narrative needs to change, needs to be rewritten, and the stigmatization and the othering of these populations needs to stop, so that the real issues, as I said, that impact British society and can be addressed here. And it's a tall order, and it requires a rethinking of the narrative around immigration, and that's obviously a difficult one, John.
VAUSE: But what politicians are being elected by saying these sort of things. And there's a reward at the end of the day for certain politicians who make it way, make their way to Parliament. Is this fixable?
THOMAS: Well, that's the big issue. And the fact is, we are seeing that politicians don't like to listen to these particular facts. They have, increasingly, I would say, flirted with some of these far right issues, so you even have, like the case of Keir Starmer, a kind of law and order administration and talking about certain questions around immigration, such as development policies and so on.
Many of these have been proven to be ineffective, so that the process of policy making is also deeply infused with kind of misconceptions, false perceptions and so on. And you're absolutely right to say that the easier path the politicians have taken has been towards exacerbating tensions, polarizing and exploiting and instrumentalizing the question of immigration, rather than trying to counter the particular narrative that it represents. And this is an issue not just in Europe, but in the United States and elsewhere. John.
VAUSE: Good point. Dominic, good to have you back. Good to see you. Thank you.
THOMAS: Thank you.
VAUSE: In a moment, the biggest decision so far of Kamala Harris's run for president, who will she choose as a running mate. That in a moment.
(COMMERCIAL BREAK)
[01:31:01]
JOHN VAUSE, CNN ANCHOR: Welcome back, everyone. I'm John Vause. You're watching CNN NEWSROOM.
Kamala Harris has won 99 percent of the delegate vote Monday, officially making her the Democratic Party presidential nominee and the first black woman and first Asian-American to lead a major party ticket. The Harris campaign will travel to several battleground states this week, including Michigan, North Carolina and Nevada.
First stop though, Pennsylvania in the hours ahead. That's where Harris is expected to appear with her running mate at a rally after announcing her decision.
As of Monday afternoon a source said Pennsylvania Governor Josh Shapiro, Minnesota Governor Tim Walz, and Arizona Senator Mark Kelly are or all in the running.
Maria Cardona is a CNN political commentator and Democratic strategist. She's with us this hour from Washington. Good to see you.
MARIA CARDONA, CNN POLITICAL COMMENTATOR: Thank you, John. Good to be with you.
VAUSE: Ok. So in the days leading up to this Democratic announcement of vice-presidential running mate, it seems that Kumbaya moment of the party (INAUDIBLE) just a little.
Progressives are pushing for Minnesota Governor Tim Walz over Pennsylvania governor Josh Shapiro. And for what it's worth, here's the former New Jersey Governor, Republican Chris Christie.
(BEGIN VIDEO CLIP)
CHRIS CHRISTIE (R-NJ), FORMER GOVERNOR: It should be Josh Shapiro. I don't think this is a hard choice. He's a very talented politician. He's extraordinarily popular, 65 percent job approval in a state she needs to win.
(END VIDEO CLIP)
VAUSE: He does make a case. Both governors have their pros and cons. So place your bets. Who will it be as far you're concerned and why?
CARDONA: I think Josh Shapiro would be a great pick. I also think Tim Walz would be a great pick. They each have their pros and cons. But frankly, mostly pros.
And the most important thing here, John, is you will hear everyone talk about what each of these contenders will bring from an electoral standpoint and obviously that's important.
And obviously it's going to be one of the key things that the vice president takes into consideration as she makes her choice.
But more important than all of that, John, it's going to be her gut. It's going to be her core. It's going to be the chemistry that she feels she has with whoever she ends up picking because the -- one of the most important things above electoral, above the map is giving her a governing partner.
This person is going to have to have her back throughout four years, hopefully eight years of what will be her administration. VAUSE: I'll put you down as a dodge on that question. So with that in
mind, I want you to listen to Republican nominee Donald Trump on Josh Shapiro. Here he is.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL NOMINEE: I don't care. let him do whatever. They still want to have open borders. If she picks Shapiro, she's going to lose the Palestinian vote. And that's fine.
Everybody has their liabilities.
(END VIDEO CLIP)
VAUSE: Oh, don't they, Donald? Yes, they do.
Ok. But he is referring to the controversy around Shapiro, who is an Orthodox Jew and in particular what's seen as a very pro-Israel stance, in particular an op-ed he wrote in college three decades ago about the Oslo Peace Accords between Israel and Palestinians.
He predicted peace will never come. He was right. He described Palestinians as being battle-hardened. Went on to say, "Despite my skepticism as a Jew and a past volunteer in the Israeli army -- for a couple of months, he worked on a base -- I strongly hope and pray that this 'peace plan' will be successful."
Here's Shapiro's response to the controversy.
(BEGIN VIDEO CLIP)
GOV. JOSH SHAPIRO (D-PA): It's something I wrote when I was 20, is that what you're talking about? I was 20.
But I have said for years -- years, long before October 7 that I favor a two-state solution.
Israelis and Palestinians living peacefully side id by side.
(END VIDEO CLIP)
[01:34:45]
VAUSE: Is there a "use by date" for what people may have written while they're in college, when their 20-years-old. I mean, his position now is pretty mainstream.
CARDONA: Well, you know, in politics people are going to try to dig up every single thing that a person uttered if they're trying to find ways to cut that person down a notch.
I actually think if she chooses Governor Shapiro because he is such a strong supporter of the state of Israel, it's going to give her a little bit more leeway and a little bit more flexibility to perhaps walk that thin, fine line of being able to be a lot more supportive and empathetic and sympathetic, as she should be, as we all should be, of trying to protect innocent Palestinian lives in this horrific endeavor which should not take away the support of Israel.
VAUSE: As for Trump's choice for a running mate, that's J.D. Vance, who has a thing against childless cat ladies. Here's Mrs. Vance defending her husband's remarks. Here she is.
(BEGIN VIDEO CLIP)
USHA VANCE, WIFE OF J.D. VANCE: What he was really saying is that it can be really hard to be a parent in this country. and sometimes our policies are designed in a way that make it even harder.
J.D. absolutely at the time and today would never, ever, ever want to say something to hurt someone who was trying to have a family who really, you know, struggling with that.
(END VIDEO CLIP)
VAUSE: She's articulate. She made sense. The problem is that's not what Mr. Vance actually said. You know, maybe Trump chose the wrong Vance as his running mate.
CARDONA: that's exactly right, John. She was beautifully articulate in what she just said. But it had nothing to do with what her husband said, unfortunately.
And so I think therein lies the problem and it's not just that he said it once or twice, or a long time ago, right, talking about things that people have said in the past, it's that he has doubled down on it. It's that he hasn't apologized.
And it's interesting that his wife said that J.D. Vance never wants to hurt anybody who is trying to have children. Well, what about people who choose not to have children, right?
That that is a lifestyle that people are free to choose. This is a free country, at least it will be unless Donald Trump gets elected. And I think that is the bottom line, right?
I think this really easily and beautifully plays into the contrast. And the choice that is before the American electorate in November.
VAUSE: Maria Cardona, thank you so much for being with us. Really appreciate it.
CARDONA: Thanks so much, John. Great to be with you.
In Venezuela, the opposition presidential candidate and opposition leader are now both under criminal investigation. The public ministry accuses Edmundo Gonzalez and Maria Corina Machado of falsely announcing the winner of the weekend election. Venezuela's electoral body says Nicolas Maduro won the vote in a third term. But is yet to release any election records to back up that claim.
U.S.A.'s recognized Gonzalez as the rightfully elected president of Venezuela. This seems to be standard operating procedure for the Maduro government, which issued an arrest warrant for Juan Guaido in 2023 and sentenced another opposition leader, Leopoldo Lopez, to 14 years in prison. Both men have since fled the country.
The Israeli military returned 89 bodies to Gaza Monday. Palestinian officials are preparing them for a mass burial. A warning now, viewers may find the video they're about to see disturbing.
Family members of the missing gathered at the burial site, hoping to find information about their loved ones. Palestinian officials say the bodies were handed over in a shipping container.
The Israelis did not provide the identities or information about when or how they died. Gaza's civil defense officials say some of the body bags contained the remains of more than one person. Some of the bodies were killed several months ago.
Now, forensic specialists are examining the bodies to try and find out more details.
Some Israeli soldiers who fought in Gaza are reconsidering what they're ordered to do during that war. One former reservist tells CNN he witnessed serious misconduct, says many troops were motivated by anger and revenge for the October 7 attacks.
CNN's Jeremy Diamond speaks to some Israelis now refusing to return to war.
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN INTERNATIONAL CORRESPONDENT: Michael isn't just protesting Israel's war in Gaza. He served in it. And now as the war enters its 11th month, he is refusing to serve again.
MICHAEL OFER ZIV, FORMER ISRAELI RESERVIST: It just feels like this is my duty now. Like after doing whatever I did there, I feel like my duty is to oppose this as much as I can. To raise my voice to be part of this, of this fight.
DIAMOND: Michael served as a fire control officer, monitoring threats to Israeli forces in Gaza and approving airstrikes from across the border.
You were watching live feeds of these airstrikes happening?
[01:39:51]
ZIV: Yes.
DIAMOND: And what were you seeing?
ZIV: Well, no audio, just video. We just see the feed. And then all of a sudden you see just a building goes boom, you know, goes up in flames, like big mushrooming clouds.
DIAMOND: It looks like a video game.
ZIV: Exactly. And then you start seeing that the aftermath of those strikes. At some point, your brain cannot disconnect those two things anymore and they start to connect.
This is happening in real life and has actual effects on those people. So you start connecting the dots.
DIAMOND: Once he connected those dots there was no going back.
At the end of May, he and 40 other military reservists said they would not serve again, signing an open letter declaring "Our conscience does not allow us to stand up and lend a hand to the desecration of the lives of the hostages and to sabotage another deal."
ZIV: I'm actually supposed to be there now. I was called back. I told them I cannot come. I cannot in clear conscience come and do this, and in clear mind and clear heart, cannot -- cannot participate in this thing.
The main vibe was we shoot first, ask questions later.
DIAMOND: It became clear to you that the system was not doing all it could to protect civilians.
ZIV: Yes. Yes. Very, very clear at some appointed.
DIAMOND: Yuval Green is taking the same stand after wrestling for months with his service as a combat medic in Gaza.
YUVAL GREEN, ISRAELI COMBAT MEDIC: I was always in conflict, it was as simple. But I felt like I can't abandoned my friends at this moment, you know, when they need me the most.
DIAMOND: But the immeasurable destruction around him became impossible to ignore. And so was the language of revenge, he says, that seemed to imbue everything Israeli soldiers in his unit did in Gaza.
GREEN: The way they spoke, the violent way they spoke, you know. Ideas like killing the entire population of Gaza suddenly became almost, almost normal.
DIAMOND: What was that moment when you decided I can't be a part of this anymore?
GREEN: Basically, they told us to -- after one of the houses we've used to protect ourselves. We went out of it. And this was a house in the middle of Khan Younis, a place that would be definitely rehabilitated by the Palestinians afterwards.
And they told us to burn it down because we're burning down every house we're coming out of. I said, all right, this is just not a good enough reason to take away the house of two or three families. I'm not doing that.
And if we're doing that, I'm leaving. The commander of my company just didn't have good enough answer and I just left.
DIAMOND: The next day, Yuval jumped into a vehicle making a supply run out of Gaza. He never went back. There is a sense in Israel that if you refuse to serve or if you criticize the war, that you can be viewed as a traitor in some ways.
GREEN: Yes. A lot of the closer -- of my closer friends and families are, you know, are more afraid that I'd be harmed because of those interviews than it was in Gaza.
Crazy, right?
DIAMOND: The Israeli military has yet to try and call Yuval back to active duty.
But as the war rages on and a wider regional war looms, the military could prosecute Yuval and Michael for refusing to serve.
ZIV: I do prefer to go to jail than to participate in what we're doing in Gaza. But I prefer to do neither if it's possible.
DIAMOND: He may need to cease fire to turn that hope into reality.
Now in response to Yuval Green's allegations, the Israeli military says that it follows Israeli and international law and that buildings are only destroyed in order to quote, "remove a threat". They say that any destructions of buildings that don't fit operational needs are quote, "contrary to the army's orders and the IDF values and will be examined".
Jeremy Diamond, CNN -- Haifa, Israel.
(END VIDEOTAPE)
VAUSE: When we come back here on CNN, tropical storm Debby slowing to a snail's pace, leaving parts of the southeastern U.S. with what some are calling once-in-a-thousand-year rainfall event.
[01:44:00]
(COMMERCIAL BREAK)
VAUSE: Torrential rain and strong winds from tropical storm Debby have left at least four people dead in Florida, now threatening to bring historic flooding to parts of the U.S.' south.
The mayor of Savannah, Georgia is terrified, he says, by the amount of rain this slow-moving storm is bringing. Now expected to move into the Atlantic Ocean in the hours ahead, and will then slowly push into North Carolina later this week.
More now on tropical storm Debby from CNN meteorologist Chad Myers.
(BEGIN VIDEOTAPE)
CHAD MYERS, CNN METEOROLOGIST: Well, Debby started out certainly as a rainmaker with almost a foot-and-a-half of rain over parts of Florida. Everywhere that you see purple on this map, that's ten inches of rain or more. And then the red spots here somewhere around six. Look at the wind gusts here, just barely getting into the hurricane
category, but they were there. This is the rainfall that is still to come because this storm is moving so slowly, literally five miles per hour.
The Olympic athletes could power walk faster than that. And it's going to hang around for a very long time, putting down significant amounts of rainfall.
There could be 10 to 20 inches of additional rain into parts of Georgia, South Carolina, North Carolina. And look at this, by Saturday, there could even be rain into the northeast.
Now obviously the cone goes all the way to the left and all the way to the right five days away from now but it's certainly a possibility. We keep watching it for you here.
Now, also remember that there could be some tornadoes still coming in. If you hear those sirens or your phone goes off, make sure you take cover. Low country, South Carolina, also up toward the Grand Strand (ph).
(END VIDEOTAPE)
Our thanks to Chad Myers for that report.
Well, scientists have warned western Norway could be hit by a devastating tsunami in the coming years.
CNN's Michael Holmes explains why.
(BEGIN VIDEOTAPE)
MICHAEL HOLMES, CNN CORRESPONDENT: It could be years or even decades from now, but geologists expect this mountainside will collapse into the waters below, triggering a tsunami within minutes and putting people in surrounding towns at risk.
The mountainside lies near Stranda in Norway. For decades, the eastern inside of the mountain has been undergoing gradual deterioration, losing up to ten centimeters a year into the fjord below, according to experts.
LARS HARALD BLIKRA, GEOLOGIST, NORWEGIAN WATER RESOURCES AND ENERGY DIRECTORATE: It's a bit shifty. We are, of course, a bit nervous when we see these changes in the mountain because when it changes, there is something happening.
HOLMES: In 2016, Norway's Directorate for Civil Protection estimated that 54 million cubic meters of rock could fall from the mountainside generating waves several meters high which would crash into nearby villages.
Two towns nestled at the end of the fjord may be hit with waves as high as 70 to 80 meters. GEIR GJORVA, SHIPPING AGENT: The wave will propagate in fjord. No one
knows how big it will be, whether it will be this size or that size. Who knows? It can happen slowly or quickly. No one knows.
HOLMES: If a collapse happens, it won't be the first time. In 1934, a landslide of around 3 million cubic meters of rock happened a few towns over, triggering a devastating tsunami. That event inspired the creation of the movie, "The Wave" released in 2015.
BLIKRA: We are not here for fun. This is real life. It's a large probability that we can have a large event which can create a major threat for the society. And we really need to monitor this, to have control.
HOLMES: Sensors inside the mountain and instruments on the surface measure every movement of the mountain to sound the alarm in case of an emergency.
[01:49:53]
HOLMES: Geologists say the mountainside will show warnings before plunging into the water below, giving nearby residents enough time to evacuate.
Emergency plans are set and when the time comes, authorities say they're prepared.
EINAR ARVE NORDANG, STRANDA NORWAY MAYOR (through translator): Concerning the life and the health of people, we feel rather safe. But it's clear that there are important material values at stake. From my point of view, I also think that having to evacuate thousands of people in a small area because of the risk of a landslide is a nightmare scenario for a mayor, I have to admit.
HOLMES: Experts are searching for ways to slow the mountain's deterioration like draining water which acts as a lubricant to the rocks. But these solutions are complex and costly, and some residents say it's best not to worry too much.
OLAV ARNE MEROK, GEIRANGER RESIDENT: Here we are about 30 to 40 meters above sea level. It is certain that if the wave reaches 90 meters, we will be underwater. but we cannot live constantly with this idea in mind. Otherwise, we no longer live.
HOLMES: Michael Holmes, CNN.
(END VIDEOTAPE)
VAUSE: Well, a huge legal blow for Google after a U.S. court ruled the search engine giant is an illegal monopoly using its market dominance to stifle competition. According to the 277-page ruling, Google violated antitrust laws by paying other companies like Apple and Samsung billions of dollars a year to have Google automatically handle search queries on their smartphones. Google is set to appeal.
Still to come Olympic silver for American gymnast Simone Biles in Paris? A silver? Who took gold?
(COMMERCIAL BREAK)
VAUSE: At the Paris Olympics, women's volleyball quarterfinal begins about an hour from now. Team U.S.A. and China are tied on top of the medal tables with 21 each. The U.S. still ranks first in overall medal count.
CNN's Coy Wire has the very latest Olympic highlights.
(BEGIN VIDEOTAPE)
COY WIRE, CNN WORLD SPORT: Simone Biles finishes out her 2024 Olympics with a silver medal to add to the three golds she's already won here. She missed on medaling in the beam today, but her floor routine was jaw-dropping. She stepped out of bounds a couple of times, likely costing her the gold, but her difficulty level was on such another level but it still won silver.
She leaves Paris with five more gymnastics medals, American record 11 in her career. Brazil's twenty-five-year-old star, Rebecca Andrade won her first gold of these games. And check out this incredible display of sportsmanship afterwards. Simone and fellow American Jordan Chiles bowing down to Andrade on the podium.
I caught up with Team U.S.A. stars Suni Lee, who added three more medals to her name and asked her about that remarkable moment.
Listen.
(BEGIN VIDEO CLIP)
SUNI LEE, TEAM U.S.A. GYMNAST: I feel like in the sport of gymnastics, only the gymnasts will know really how much respect do you have for each other. And also like we are the only people that know what we go through every single day to get to where we are.
So seeing someone succeed, honestly, just makes me really happy. And I was so happy for her too. I was up there jumping up and down. But yes, it was a great moment.
(END VIDEO CLIP)
WIRE: The mixed triathlon finally took place and there has been so much added stress to the biggest moment of these athletes' careers. Australia's team doctor said they've been using prophylactic antibiotics, skin washes, ear washes, eyewashes on their triathletes and marathon swimmers after each swim.
[01:54:47]
WIRE: Germany won the mixed relay ahead of Great Britain and U.S.A. who took bronze in a photo finish. Still two more events to come in the Seine, the swim marathon at the end of the week.
The man with perhaps the most powerful right arm on the planet, Team U.S.A.'s Ryan Crouser has won Olympic shotput gold for a third straight time. No one else has ever won three -- period, in the event.
I caught up with him earlier today to talk about his superhuman career.
(BEGIN VIDEO CLIP)
RYAN CRUISER, OLYMPIC GOLD MEDALIST: This one has definitely been the most enjoyable not because it has been easy. It's been the complete opposite.
It's just been frustrating this year with injuries and setbacks and kind of asking myself like, can I get back to the level that I need to be at to be competitive against these guys. Or questioning like can I get to where I need to be and so just kept moving forward doing what I still was able to do.
So that kind of makes this one mean the most because the most kind of went into this.
(END VIDEO CLIP)
WIRE: And finally, American swim star Caeleb Dressel racked up three more Olympic medals.
He was full of smiles here at our WBD house studios after what may have been his last ever Olympics, embracing the moment he was also heartbroken though after missing out on the final for one of his best events earlier in the games.
I asked him how tough and intense these moments can be.
(BEGIN VIDEO CLIP)
CAELEB DRESSEL, TEAM U.S.A. SWIMMER: You train your whole life for a race that boils down to a couple of seconds. Yes. And then when it's over, it's over. So it's devastating. It's heartbreaking.
You put all that effort into something and you wanted different results. And then all of a sudden there's guys that are better than you on that day. And there's nothing you can do about it.
So yes, I was -- I was heartbroken. I needed -- I needed to cry.
WIRE: Yes.
DRESSEL: And I'll probably have a couple when I get home, reflecting on the meet (ph) and then hoping it'll subside and I can enjoy, enjoy my friends, my family when I get home.
(END VIDEO CLIP)
WIRE: Caeleb won two more golds here in Paris making nine career Olympic gold, tying him with Carl Lewis, Mark Spitz, and Katie Ledecky for second most by any American ever.
And as you can see, everything is going to be just fine no matter what his future holds as he gets some well-deserved time with his wife Meghan, and their baby boy, August.
(END VIDEOTAPE)
VAUSE: Thanks Coy for that report.
And thank you for watching. I'm John Vause.
Please stay with us. My friend and colleague Rosemary Church is in the chair.
CNN NEWSROOM continues after a short break.
See you right back here tomorrow.
[01:57:11]
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