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Japan Nikkei Rebounds After Monday Sell-Off; Intense Diplomacy Underway To Prevent Wider War In The Middle East; Growing Tensions Between Hezbollah And Israel; New Prime Minister Kier Starmer Vows To Quell Riots With "Army" Of Police. In Bangladesh, PM Sheikh Hasina Resigned After Weeks of Anti-government Protests; Protesters Call for New Interim Government Led By Muhammad Yunus; Nine UNRWA Employees Possibly Involved in October 7th Attack; Freed American Journalist From Russian Prison Says She is Finally Being Treated as a Human Being. Aired 2-2:45a ET

Aired August 06, 2024 - 02:00   ET

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

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[02:00:30]

ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world and to everyone streaming us on CNN Max. I'm Rosemary Church.

Just ahead, a massive tumble on Wall Street as U.S. stocks notched their worst day in two years. But just a day after global markets plunge, they seem to be mounting a comeback.

The Middle East on a knife's edge as the region braces for Iran to retaliate against Israel after the death of Hamas leader Ismail Haniyeh.

And the British prime minister vows a swift response after days of violent far-right riots that have gripped the nation.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Rosemary Church.

CHURCH: Good to have you with us. Well, what a difference a day makes for financial markets across the Asia Pacific region. Japan's Nikkei has rebounded sharply from Monday's record sell off. The index has managed to claw back more than half of the 12 percent loss, the biggest since October of 1987.

The question now is whether U.S. markets can follow suit. The Dow closed down more than a thousand points Monday, its worst percentage loss in nearly two years, and the NASDAQ fell nearly 3-1/2 percent as tech stocks took a beating.

Investors are concerned over weak jobs numbers and a possible recession, but U.S. Futures are pointing to a rebound when markets open today, you can see there more encouraging numbers. I want to go now live to Tokyo and CNN's Hanako Montgomery. So, Hanako, what is the latest on markets in Asia, and what can we expect from the financial day ahead for the rest of the world?

HANAKO MONTGOMERY, CNN CORRESPONDENT: Hi, Rosemary, it's good to see you. So, on Tuesday, we've seen Asia stock markets recover somewhat after the massive losses we saw just a day before, but experts are warning me that the markets will likely remain very volatile until September, when the U.S. Federal Reserve will likely make some rate cuts.

Now, the reason why we saw Asian stock markets, and specifically the Japanese stock market, which was the hardest hit just yesterday, recover in about 24 hours, is really twofold. The first is the fact that we received better than expected service sector -- service sector data for the month of July for the United States, which has eased some concerns about a potential recession for the world's largest economy.

Now, the second reason is because the Japanese yen has stabilized a bit and its value has dropped a little bit.

Just yesterday, the U.S. Japan -- the U.S. dollar in Japan rate surged very highly, and the value of the Japanese yen went up very significantly, which spooked a lot of investors and hedge funds.

And the reason why we did see those massive movements is largely attributed to the fact that the Bank of Japan raised interest rates for the second time in 14 years just last week, the interest rate is now at about 0.25 percent which sounds very low and it is compared to many other countries around the world.

But the reason why Japan said it needs to raise interest rates is because it needs to prop up the value of its currency.

Over the last year, we saw the U.S. Japan rate drop significantly, and the value of the yen dropped significantly, which has made the cost of imports for things like food and fuel that much more costly.

So, the Bank of Japan raised those interest rates and it's work, the value of the Japanese yen has gone up. But again, that sudden surge that we saw yesterday spooked hedge funds. It spooked investors, which led to that selling spree we saw yesterday.

But now that the U.S.-Japan rate has stabilized somewhat, it's now trading at 146 yen to the dollar, it has -- it has eased some concerns.

But Rosemary, we're not out of the woods yet. As you just said, we're expecting to see some changes potentially in the U.S. and U.K. stock markets in the hours ahead. And experts have warned that we could be watching with bated breath what the U.S. Federal Reserve will do come September, Rosemary.

CHURCH: Hanako Montgomery joining us live from Tokyo with that report, appreciate it. As the Middle East braces for Iran to retaliate against Israel, the U.S. is reporting a strike against its personnel in Iraq. An American defense official says several U.S. staff were injured in a suspected rocket attack at the Al-Asad Airbase. The Pentagon says Iran aligned militia groups are responsible calling the attack a dangerous escalation. Damage assessments are underway.

[02:05:16]

The White House released this photo of the U.S. president, vice president and secretary of state discussing the attack in the Situation Room and a statement saying they went over the steps being taken to defend U.S. forces and support the defense of Israel.

They also discussed efforts to lower regional tension. Intense diplomacy is underway to prevent an attack that could lead to a wider war.

For now, it's anyone's guess how and when Iran will go after Israel. However, the Iranian foreign ministry stressed on Monday that Tehran is determined to, "Deter Israel, and no one should doubt its resolve."

(BEGIN VIDEO CLIP)

NASER KANANI, IRANIAN FOREIGN MINISTRY SPOKESPERSON (through translator): Iran does not seek to escalate tensions in the region. If Iran talks about its right to punish the aggressor, this is an action to help consolidate security and stability in the region.

(END VIDEO CLIP)

CHURCH: The Israeli defense minister visited Air Force commanders on Monday and told them to be prepared for anything. Iran has been vowing to punish Israel for days now, after its ally Hamas political chief Ismail Haniyeh was assassinated on Iranian soil last week. Israel has not claimed responsibility for the killing.

CNN's Paula Hancocks is tracking all this live for us, she joins us now from London. So, Paula, what's the latest on heightened tensions in the region as Israel braces for retaliation from Iran?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Rosemary, it's somewhat of a waiting game at this point to see what sort of response there is going to be from Tehran. They have promised that there will be a response, but we simply don't know what that will look like at this point. Nor does Israel and nor does the United States.

You saw the Situation Room meeting in Washington that really shows that they are trying to figure out exactly what this retaliation might look like.

Now, we've heard from two U.S. officials that in April, many of the military assets that Iran may well use when it comes to some kind of retaliation against Israel had been moved. So, this has made it far more difficult for U.S. intelligence to try and predict what will happen, and of course, the timing of when that might happen. Now, when we did see that retaliation from Iran back in April, it was

very much telegraphed when we saw some 300 drones and missiles rockets fired on Israel itself. So, it gave Israel -- it gave Israel's allies, specifically the United States, time to prepare and to be able to bring down the vast majority of those projectiles. It's a very different situation this time around, because they simply don't know what they are up against.

Now, we know that Gen. Kurilla, who's the CENTCOM chief is in the region at this point. He was last time round as well able to coordinate that response to Tehran's retaliation, and this time around, he is in the region as well, although no specification on which country he is in.

But that shows that they are trying to have some kind of protection, as the U.S. has said, that it will help Israel and that it will try to protect them from any kind of attack.

Now, as you said, we have heard from the Israeli side as well. We've heard from the Israeli Defense Minister Yoav Gallant telling his troops that they have to be prepared for anything, saying that they have to be prepared, not just for defensive moves, but also for offensive moves.

But Tehran has been very clear that there will be some kind of retaliation for the killing of Ismail Haniyeh, the Hamas political bureau chief, who's in -- who was in Tehran at the time of that killing. And there's also differing narratives on how he was killed. From Tehran, we're hearing that it was an airborne projectile and that there was a severe explosion outside the guest house, but we have sources close to the matter telling CNN that they believe that there was an explosive device planted inside that guest house potentially months before.

So, there are a lot of unknowns at this point, Rosemary, but what we are hearing from certainly the Iranian side, the certainty is that there will be some kind of retaliation.

CHURCH: All right, thanks to Paula Hancocks joining us, live from London.

Let's bring in Alon Pinkas from Tel Aviv. He is a former advisor to two Israeli Prime Ministers and a former Israeli consul general in New York. Appreciate you joining us.

[02:10:01]

ALON PINKAS, FORMER ISRAELI CONSUL GENERAL IN NEW YORK: Thank you. Good morning, Rosemary.

CHURCH: Good morning to you. So, as Israel braces for retaliation from Iran, the U.S. is reporting a strike in Iran -- in Iraq on American personnel. The U.S. blaming Iranian proxies for the attack. Is this an effort to drag the U.S. into the conflict and if so, how should it respond? PINKAS: Oh, there's no question that there's an effort to drag the U.S. I mean, this is -- this is the sum of all fears, Marjorie -- I'm sorry, Rosemary. This is the sum of all fears that the Americans had since or have since October 7th.

I mean, a regional, wide conflagration. But I have to take a somewhat heretic view here and maybe give the viewers some food for thought. The worst scenario is an escalation with Hezbollah, not necessarily with Iran, because, in terms, Rosemary, of range of missiles, the number of missiles and the accuracy of the missiles, all of which are interconnected, Hezbollah poses a much greater threat. What the Iranians pose is a threat of a regional escalation that the U.S. is so worried about.

Now, the funny thing, or the tragic thing, or the puzzling thing about all this, is that the U.S. does not want to be dragged into the war, that's obvious. The Iranians do not want America to be dragged into the war because they have a lot of assets that may be compromised in that process.

No one actually wants the Americans to be dragged into this, except arguably Israel, which thinks that an American strike on Iran could turn the debacle of October 7th into some kind of a strategic game changer. I think it's false and flawed. A flawed assumption, but there you have to.

CHURCH: So, what type of retaliation are you expecting in Israel from Iran, what's their likely calculation with any attack?

PINKAS: OK, there are two sets of calculations here. I'll try and be brief. The first is, is it just from Iran avenging or retaliating against the killing of Haniyeh in Tehran? And the timing was also important and pertinent because it was the inauguration of the new president in Iran, and Iran already pledged and vowed and promised to retaliate.

So, the question, the first set of issue issues, is whether this is just from Iran versus Israel in a con -- you know, in a contained setting, or conversely, is Hezbollah also involved? Because if Hezbollah is also involved, and as I said before, they pose a greater threat, that may also mean that the Houthis in Yemen may be involved. And before you know it, we have a 360 degree attack.

The second set of calculations that we're looking at is what exactly are they targeting? You know, in nuclear theory, there used to be a distinction between counter force and counter value, counter force meaning you hit military installations, military forces war -- you know, weapons, platforms and counter value. You hit power plants, airports, seaports and population centers.

If the Iranians and Hezbollah go for counter value, then we're looking at a major war. If, on the other hand, they limit their retaliation, their response to several dozens of missiles, over half of which will probably be intercepted by the U.S., by the British, by Jordan and by Israel and maybe other countries that I don't know of. So, we could call it quits, you know? We could say, OK, this is a remake of what happened in April, an exchange of missile or drone salvos.

But if, if there is a misfire, a you know, a mistake in the launching of the missile, and it does cause damage, then hell may break loose.

CHURCH: Very sobering. Alon Pinkas joining us live from Tel Aviv. Many thanks for your analysis. Appreciate it.

PINKAS: Thank you very much. Rosemary.

CHURCH: Still to come, Britain's new prime minister faces his first crisis as violent far-right protests sweep the country, more on the steps he's vowing to take to quell the unrest, back with that and more in just a moment.

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[02:16:58]

CHURCH: Welcome back, everyone. Britain's new prime minister is vowing to end the riots sweeping the U.K. with what he calls a standing army of police ready to bring violent protesters to justice.

Facing his first major crisis since taking office, Keir Starmer chaired his first emergency response meeting known as Cobra on Monday. He says far-right agitators have seized upon the deadly stabbing of three young girls in Southport, England last week, using that tragedy to spread anti-immigrant and anti-Muslim disinformation. Starmer says it's nothing more than violent, organized thuggery.

(BEGIN VIDEO CLIP)

KEIR STARMER, BRITISH PRIME MINISTER: We'll ramp up criminal justice. There have already been hundreds of arrests. Some have appeared in court this morning. I have asked for early consideration of the earliest naming and identification of those involved in the process who will feel the full force of the law.

And thirdly, I have been absolutely clear that the criminal law applies online as well as offline, and I am assured that that is the approach that is being taken.

(END VIDEO CLIP)

CHURCH: Hundreds of volunteers have gathered in cities affected by the riots to help clean up the damage.

CNN's Nada Bashir has been following the developments and has more now from one of the sites of these violent protests.

(BEGIN VIDEOTAPE)

NADA BASHIR, CNN REPORTER (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 target of their rage, this hotel reportedly housing asylum seekers.

BASHIR: 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-right rioters.

You can see behind me, the smashed windows have now been boarded up. At one point, rioters 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.

BASHIR (voice over): 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.

LINDSEY 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 (voice over): Violent anti-immigration riots have been sweeping across the country in the wake of the horrific killing of three young girls in Southport.

6-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.

[02:20:14]

Drawing condemnation from the country's prime minister.

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

BASHIR (voice over): 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 flash point 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.

UNIDENTIFIED FEMALE: If people are going to bring 200 people out to incite here, we're going to bring 20,000 out to incite good.

BASHIR (voice over): 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 more violence.

Nada Bashir, CNN in Rotherham, England.

(END VIDEOTAPE)

CHURCH: Sunder Katwala is the director of British Future, a U.K. based think tank. He joins me now from Dartford in England. Appreciate you being with us.

SUNDER KATWALA, DIRECTOR, BRITISH FUTURE: Good morning.

CHURCH: So, in what has been the worst social unrest the country has seen in years, how was it possible for these violent anti-immigration, anti-Muslim and right-wing protests to get so out of hand so quickly, given they are fueled by disinformation, including false claims that the Southport stabber was an immigrant?

KATWALA: Yes, there's a cocktail of factors that lead to this. Spreading, there's a lot of online disinformation about who the -- who the perpetrator was, and then there are -- there are groups being stoked up, but also spontaneous, diffuse networks of people who are perhaps on a hair trigger around issues of, you know, asylum and boats across the channel, or their fears of Muslim immigration or integration.

And so, have decided to target and attack groups that happened to be totally unconnected to the terrible and tragic incident that took place.

CHURCH: The U.K.'s new prime minister, Keir Starmer, is vowing to quell the riots with an army of police, he says. So, when might that happen, and is that the solution to this problem do you think?

KATWALA: I think immediately, you know, this week, in the next few days, the police and the government need to demonstrate they've got control of the situation, and they will be looking to charge and convict people very quickly. So there's a very, very clear message that these are very dangerous racist rights and that there are big consequences taking part.

But there's a longer term debate then once things are calmer in the streets about what you do in parliament, in politics, about debates, about identity, integration, racism, prejudice, what kinds of changes. You can't make changes to try and pacify the kinds of tiny minorities who are taking part in racist violence, but you need to show the rest of society, the majority of society, that we can have those debates legitimately and work on a strategy for closer communities, more trust between people, so that shocker events don't create this kind of prejudiced reaction.

CHURCH: So, what do you think is behind the rise of the far-right in the U.K.? What's fueling this hatred? KATWALA: It's not growing as a -- as a part of the population in the long term, especially across generations, it's shrinking, but the sort of two-three percent of people now don't accept that people who aren't white or British, you know, the old traditional views of the far-right that wants to send all migrants and minorities back. That group as society has moved away from it is much more socialized, linked up network together online in hateful networks that are 24/7 and those are being used to socialize towards violence.

So, you've got to be really strong on what the platforms do to break that up and how to prosecute people who conduct this kind of behavior.

There's a different thing we need to do then, which is to have better and stronger relations between different groups in our society, which is going well with younger people in more diverse parts of the country, but there's still a challenge to make that meaningful contact, bridge the generation and the geographical gaps in our society.

CHURCH: And so, you say the far rioters is -- makes up what, so two to three percent of the population, but there are a whole lot of other people out on the street as well.

[02:25:05]

So, how representative of the British people are these violent and extreme protesters? And what do most Brits see then as the solution to the problem here?

KATWALA: Well, there's very, very little sympathy for the protests of for example, there's been research in polling the last few days, four percent people think the police should be -- the court should be lenient to people arrested and convicted for this. Most people want stronger action than normal because of -- because of the nature of it.

That is completely different to the contested debates about post Brexit, immigration policy, integration policy, how to get that right? . We've got different views there. You know, the Reform Party of Populist Party, they've got a sixth of the vote and five MPs, and they will take a very tough line on these issues, the broad majority of the public is more with the positions of the Labour government, the Conservative government, a more balanced approach, where people have got concerns about immigration and integration, but they also think it makes a positive contribution. So, most people are balancers on issues of handling immigration and diversity in a changing society.

And so, you know, those with much stronger and tougher views can use the legitimate political process, but can't use street violence to try and shift the argument their way.

CHURCH: Sunder Katwala, thank you so much for joining us and sharing your perspective on this issue. Appreciate it.

KATWALA: Thank you.

CHURCH: After waves of violent protest, Bangladesh prepares to dissolve its parliament and form a new government. What student demonstrators want to see from the next group of leaders, that's just ahead here on CNN.

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CHURCH: Welcome back, everyone.

Student protesters in Bangladesh are now pushing for a new interim government after the president announced the release of detained protesters and opposition leaders, according to state media, this follows the ouster of longtime Prime Minister Sheikh Hasina, who stepped down Monday after weeks of deadly anti-government protests.

CNN's Kristie Lu Stout joins us now from Hong Kong for more on this. Good to see you, Kristie. So, what all is known about the situation inside Bangladesh after the prime minister resigned and left the country?

[02:30:00]

KRISTIE LU STOUT, CNN CORRESPONDENT: Well, Rosemary, students of Bangladesh, they are still defiant and they have their demands after the prime minister resigned and fled to India, and after the army chief said an interim government would be formed. In fact, a student protest leader in Dhaka told CNN that the next step is to "abolish the fascist systems forever." 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 CLIP)

LU STOUT: Now, the student protest organizers are now calling for an interim government under Muhammad Yunus, the Nobel Laureate. And early on Monday, Yunus spoke to CNN. Take a listen.

(BEGIN VIDEO CLIP)

MUHAMMAD YUNUS, NOBEL LAUREATE: People are celebrating on the street. Millions and millions of people all over Bangladesh celebrating as if this is our liberation day.

(END VIDEO CLIP)

LU STOUT: Yunus also said that he hoped that the army in Bangladesh would be wise and handover all responsibility to a civilian government. I mean, while the President of Bangladesh is promising to consult all parties on this interim government, and he also announced the release of detained student protesters as well as the detained opposition leader.

The former Prime Minister Sheikh Hasina, she fled on Monday. She is now in India. She is in fact, near New Delhi after fleeing Dakha on Monday. She is believed to be in a safer place that's according to a senior official from the foreign ministry of Bangladesh. And after she fled, I want to show you this video, huge crowd took to the streets in Dhaka, shouting slogans, marking the moment. In this aerial video, you could just see the scale of these protests, just massive numbers of protesters out there shouting slogans, marking and for many of them, rejoicing in the moment.

Now, thousands also stormed the official residence of the prime minister who was forced to flee. In this video, you can see scores breaking into and vandalizing what was once a highly protected government compound. And all this turmoil, it comes after some of the worst violence Bangladesh has witness in decades.

Earlier on Monday, as reported on CNN, armed forces opened fire using live rounds on anti-government protesters in the capital. We know that last month, it was reported about 150 people were killed during protests, and this crisis, it erupted last month, when student groups, they wanted the end of this controversial quota system for government jobs. And then that later spiraled into this wider campaign to oust Sheikh Hasina.

Her grip on power ended on Monday after weeks of deadly protests. She is now in India near New Delhi. This is an incident that has sent shockwaves across the region and across the world. Rosemary?

CHURCH: All right. Thanks to Kristie Lu Stout, Bringing us that live report from Hong Kong.

A United Nations investigation has found nine employees from UNRWA, the U.N.'s biggest aid agency in Gaza, may have been involved in the October 7th Hamas attacks on Israel.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You said involvement in October 7th, that can mean different things to different people. Can you give us any clarity on what you mean by that?

FARHAN HAQ, UNITED NATIONS DEPUTY SPOKESPERSON: For us, any participation in the attacks is a tremendous betrayal of the sort of work that we are supposed to be doing on behalf of the Palestinian people.

(END VIDEO CLIP)

CHURCH: The U.N.'s internal oversight office investigated a total of 19 employees, who were accused by Israel, of participating in the attacks. Soon after the findings, Israel's military spokesperson wrote on X, "Your relief agency has officially stooped to a new level of low." Israel's more than nine-month long offensive in Gaza has taken a toll on Hamas, but an in-depth forensic analysis shows nearly half of the militant group's military battalions in northern and central Gaza have rebuilt some of their fighting capabilities.

CNN's Tamara Qiblawi has this report.

(BEGIN VIDEOTAPE)

TAMARA QIBLAWI, CNN SENIOR DIGITAL MIDDLE EAST PRODUCER (voice-over): Israeli soldiers in Gaza fighting street by street, house by house in Israel's longest war in decades. The goal they say to destroy any semblance of Hamas. Netanyahu's message is clear.

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): We are fighting and we are wining.

Goals including the elimination of Hamas.

We are going win with all our force. Are you ready?

CROWD: Yes

QIBLAWI (voice-over): The destruction of Hamas imminent, the objective within reach. But the data paints a very different picture. CNN, the American Enterprise Institute and the Institute for the Study of War, all comb through thousands of claims by the IDF and Hamas' military wing, Qassam Brigades.

[02:35:00]

What we found was evidence of a significant Hamas resurgence. Have a look at the Gaza Strip. Israel believes there are 24 Hamas battalions spread throughout the territory. We analyze 16 of these in northern and central Gaza, the most targeted areas in Israel's nine-month offensive. Our research shows that out of these 16, only two have been destroyed. Nine degraded, but still functional; five are currently combat-effective, able to carry out missions against Israeli forces.

Even as Israel uses its full military might, Hamas has been able to partially rebuild nearly half of these battalions. And it says, it is replenishing its ranks.

ABU OBAIDA, AL-QASSAM BRIGADES SPOKESPERSON (through translator): We have been able, with God's help, to recruit thousands of new fighters.

QIBLAWI (voice-over): A high-ranking Israeli officer told CNN, they agree.

UNIDENTIFIED MALE, HIGH RANKING ISRAELI ARMY OFFICER: Everywhere Hamas rears its head, we will enter. Can this ping pong stay forever? No. Our society is not built for this. And neither is the international community.

QIBLAWI (voice-over): Take a look at Jabalya, where Israel's problems are laid bare. Back in December, Israel declared the three battalions stations here destroyed. In May, less than six months later, Israeli forces faced fierce fighting by all three battalions, now, as a guerrilla force, emerging from the rubble.

We see this scenario play out across Gaza. The IDF says it his killed or captured more than 14,000 Hamas combatants, as well as half of the military leadership, including its top commander, Mohammed Deif. But, Hamas continues to recruit, to regroup, to regenerate.

Military experts we spoke to say, Israel's heavy-handed bombing campaign has accelerated Hamas' recruitment from among the civilian population. Retired U.S. Colonel Peter Mansoor helped lead the 2007 surge in Iraq, considered one of the most successful counter insurgencies in U.S. history.

COL. PETER MANSOOR, UNITED STATES ARMY (RETIRED): The fact that they are still in Gaza, still trying to root out elements of the Hamas battalions shows me that Prime Minister Netanyahu is wrong. The ability of Hamas to reconstitute its fighting forces is undiminished.

QIBLAWI: Is this an unwinnable war, would you say?

MANSOOR: This conflict will only end with a political solution, it won't end with a military victory.

QIBLAWI (voice-over): Netanyahu faces growing pressure over the spiraling humanitarian catastrophe in Gaza, and around the 115 Israeli hostages who remain there. More than 39,000 Palestinians have been killed according to health authorities. Gaza has been largely destroyed, yet Hamas' hold over the territory endures.

Tamara Qiblawi, CNN, London.

(END VIDEOTAPE)

CHURCH: Israel's military has responded to CNN's report arguing that the majority of Hamas' brigades had been dismantled and that most battalions were at a low level of readiness, unable to function as a military framework.

It is important to point out that the analysis in this report relied on U.S. military definitions which differ from those used by the IDF.

And we'll be right back.

(COMMERCIAL BREAK)

[02:40:35]

CHURCH: A Russian-American journalist freed in an historic prisoner exchange says she is "finally being treated as a human being" after her release from Russian detention.

Alsu Kurmasheva was reunited with her family in an emotional scene in Maryland last week. She was freed along with Americans Evan Gershkovich and Paul Whelan. Kurmasheva had been working for the U.S. backed Radio Free Europe/Radio Liberty, when she was detained in October of last year and found guilty of spreading false information about the Russian army. Her employer and family denied the charges. She spoke to CNN about her ordeal and the lead up to her release.

(BEGIN VIDEO CLIP)

ALSU KURMASHEVA, FREED RUSSIAN-AMERICAN JOURNALIST: When they took me out of my cell in Kazan, they never told me where they were taking me. Even in Moscow, I didn't know what was going on.

Then, I saw that bus of other prisoners. Even then, you know, you can never know for 100 percent that it's going to happen. So there was hope, as there is a belief that there is always hope, but you should be ready for anything.

(END VIDEO CLIP)

CHURCH: She told CNN it wasn't until she saw her family that she finally believed she was free. Now, she is encouraging people to send messages to those being held in prisons, and explained how such gestures kept her going.

(BEGIN VIDEO CLIP)

KURMASHEVA: I want to show you something. I showed those in Russian courtroom on June 1st. This is -- these things kept me going.

This picture -- so this is from little Davis (ph) in the United States. This picture is from little Maya (ph) in Russia. And thank you so much children, kids, mothers, fathers, everyone. Thank you for your support.

(END VIDEO CLIP)

CHURCH: And thank you for joining us. I'm Rosemary Church. "World Sport" is coming up next. Then I will be back in about 15 minutes with more "CNN Newsroom." Do stay with us.

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[02:45:00]

(WORLD SPORT)