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Trump Attacks Harris During Economic Speech; Consumer Price Index Slows Below 3 Percent for First Time Since March 2021; Columbia University President Minouche Shafik Steps Down; Japan's Q2 GDP Expands 3.1 Percent, First Rise in Two Quarters; Gaza Ceasefire And Hostages Talks To Resume In Qatar; Ukraine Launches "Biggest Attack" Yet On Russian Airfields; Ukrainian Fighter Describes Shocked Reaction Of Russians. Aired 2-3a ET

Aired August 15, 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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[02:00:32]

ROSEMARY CHURCH, CNN INTERNATIONAL 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. High stakes and low expectations with the Gaza ceasefire and hostage talks set to get underway soon. Could there be a breakthrough deal?

Plus, Kyiv's bold gamble may be showing some results, as Ukrainian troops advance in Kursk, Moscow is reportedly sending some of its forces from the front lines in Ukraine to the Russian border.

And the World Health Organization declares the mpox outbreak in Africa a global health emergency.

(BEGIN VIDEO CLIP)

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM WITH ROSEMARY CHURCH.

(END VIDEO CLIP)

CHURCH: Good to have you with us. And we begin this hour in Doha, Qatar, where the latest round of Gaza ceasefire and hostage release negotiations will get underway in the coming hours.

Diplomatic source tells CNN, Hamas will not be participating in the talks, but is willing to meet with mediators afterwards, if there are developments or a serious response from Israel.

Negotiators are hoping to close any remaining gaps on a proposal to end the fighting and return all the hostages held in Gaza. And progress on the talks could potentially prevent Iran from attacking Israel. CNN's Jeremy Diamond has details. JEREMY DIAMOND, CNN CORRESPONDENT: Well, the expectations are not particularly high for a deal to be reached during these negotiations on Thursday in Doha, Qatar. But there is certainly the potential for progress to be made, and with that comes the potential to lower the temperature in this very volatile region.

That also, of course, means that there is the potential for a lack of progress. A lack of progress that could hasten that Iranian response that we've been waiting for over the course of the last two weeks.

But this is the first time in several weeks now that you will see all the key players in Doha. And that is to say, the Mossad director, David Barnea, leading the Israeli delegation, sitting down with the head of the CIA, the Qatari prime minister, as well as the head of Egyptian intelligence.

Hamas, for its part, says that it will not participate in these discussions, but there's a key caveat there, because they do say that they are willing to listen and to hear out the mediators after those negotiations happen.

And frankly, that's different rhetoric, but it's not all that different from the way these negotiations have happened at key moments.

They have been -- Hamas and Israel have never actually sat down together in the same room. It's the Egyptian and Qatari mediators who, after meeting with the Israeli officials, then go and pass along a message to Hamas.

So, it appears that we may see something quite similar unfold after that initial meeting between the Israeli delegation and the other heads of intelligence.

Now, the real question is, how much progress can actually be made here? The Israeli prime minister, as we understand it, has given an expanded mandate to his delegation, but my sources tell me that they are still uncertain that, that is going to be enough to bridge the gap with Hamas.

What is clear, though, if progress can be made, there is real potential for lowering the temperature in this very volatile region. The U.S. special envoy Amos Hochstein, who is in Beirut on Wednesday, he made very clear that he sees an opportunity, not only to reach a cease fire in Gaza, but also saying that he believes that would then present a window of opportunity for a diplomatic solution between Israel and Hezbollah.

Jeremy Diamond, CNN, Haifa, Israel.

CHURCH: Gideon Levy is a columnist for Haaretz newspaper and a former adviser to Shimon Peres. He joins me now from Tel Aviv in Israel.

Appreciate you being with us.

GIDEON LEVY, COLUMNIST, HAARETZ NEWSPAPER: Thank you, Rosemary. CHURCH: So, as Israel continues bracing for retaliatory strikes from Iran, the Gaza ceasefire and hostage release talks are set to begin in the coming hours. What do you expect to come out of this latest round of negotiations? How hopeful are you?

LEVY: Unfortunately, very little, if at all. I wish I could be more optimistic this morning, because at stake are really crucial issues. I mean, I think we are now in a most dramatic crossroad, and Israel -- mainly Israel, has to choose, what way are we going to.

[02:05:01]

Are we aiming at the regional war, or are we aiming at a ceasefire? That's the main issue on the table. And unfortunately, until now, all the signs show that the current government of Israel prefers continuing the war on a ceasefire and releasing the hostages.

I hope this will change, but it will surprise me very much, because until now, all the indications show that Israel wants to continue this war in Gaza, which means, in the express and circumstances, it means original war, because then, Hezbollah and Iran will have to step in. The West Bank is boiling. I've been this week in Nablus, and I can tell you, the West Bank is boiling. Might explode as well.

And so many explosive things are at stake. I cannot understand how we just don't say yes, now, immediately, without any -- almost without any preconditions, because anything else will be much worse than a ceasefire.

CHURCH: Yes. I mean, that is a question a lot of people outside of Israel are asking. And one remaining sticking point to negotiating a deal is the possibility of Israel's Prime Minister Netanyahu, making last minute demands.

How likely is that? And do you think Netanyahu wants to make a deal? It doesn't sound like you think he does. Does he want to see an end to this war.

LEVY: No. Definitely, Netanyahu does not want to make a deal. The only question is, what is his motivation? Because most of his critics in Israel claim that it is only because of his personal considerations and calculations. He knows that his career might be over the moment that this war is over.

I -- and I give him the benefit of the doubt, and I still think that, above all, he doesn't believe in deals with the Palestinians. He never did. He was always very skeptical about any kind of agreement with the Palestinians.

He doesn't live in peace with the Palestinians. He lives -- or he believes only in living on the sword forever. That's a very, very frightening vision for an Israeli statesman, but that's his way of thinking, only by power, only by force.

CHURCH: So, what do you think it will take to end the fighting and return all the hostages still being held in Gaza, and ultimately end this war?

LEVY: Rosemary, only one thing they oversimplified a bit, but that's the main issue. The moment that the United States and the American administration will turn from talking to actions. The United States can put an end to this war within hours. The only thing that is requested is to change the tactics, instead of threatening Israel and advising Israel, and arguing Israel, and promising Israel -- just telling Israel the aid will be conditioned from now on.

If you say no now to a cease fire, you will have to find other sources of ammunition and arms. This will be enough, believe me.

CHURCH: Why do you think the United States isn't doing that? I mean, considering that some of their ammunition, some of their weapons, are used to kill these citizens in Gaza.

LEVY: 40,000 let me remind you. That's a big question that Americans might find the answer. I can't, because it's also contradicting the American interest. The American declared interest is about stabilizing the area and not pushing it into a regional war.

I don't know. I think it has much to do with the background of Biden, who was a Zionist for so many years. Who really loves Israel? I believe so. And he thinks that loving Israel means supporting it blindly, blindly and automatically.

And unfortunately, this is not friendship, because it's pushing Israel to another war and another bloodshed. I hope that somehow the Americans will change their attitude. Without changing the American policy toward Israel, nothing will change the release, let me be very clear about it.

CHURCH: Gideon Levy, joining us from Tel Aviv, many thanks for your perspective and analysis. Appreciate it.

LEVY: Thank you. Thank you.

CHURCH: Ukraine is targeting the source of Russia's air power with what a security source is calling the biggest attack on Russian airfields since the war began.

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UNIDENTIFIED MALE: (INAUDIBLE)

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CHURCH: This video posted on social media shows what looks like a drone crashing down on. an air base in Nizhny, Novgorod Oblast, east of Moscow.

[02:10:06]

A Ukrainian security source tells CNN that they struck four key Russian airfields in several regions, including Kursk, where Ukrainian forces are currently gaining more ground in their week-long incursion. Ukrainian president, Volodymyr Zelenskyy is praising his military and is asking allies for more support.

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VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): Thank you for the accurate, timely, and effective strikes on Russian airfields.

Our Ukrainian drones are working exactly as needed, but there are things that drones alone cannot do. Unfortunately, we need other weapons, missile weapons, and we continue to work with our partners on long range solutions for Ukraine.

(END VIDEO CLIP)

CHURCH: Ukrainian officials say that part of their mission in Russia's Kursk Region is to create a buffer zone along its northern border.

Kursk sits north of Ukraine's Sumy region. Ukrainian officials say this summer alone, Russia launched more than 2,000 missile, artillery drone, and mortar strikes into Sumy.

And Ukrainian officials say they are taking care of Russian civilians in Kursk better than Moscow is.

Fred Pleitgen gives us the latest on the ground offensive.

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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): A humiliating scene for the Kremlin. Ukrainian troops sweeping through a Russian village behind a U.S.-supplied MaxxPro armored vehicle.

Kyiv soldiers taking down the Russian flag in another town --

UNIDENTIFIED MALE: (INAUDIBLE)

UNIDENTIFIED FEMALE: (INAUDIBLE)

PLEITGEN (voice over): -- with Ukrainian T.V. reporting from the scene.

Ukraine's top general telling President Volodymyr Zelenskyy, the advance continues.

Troops have advanced one to two kilometers in various directions, he says, and then adds, since the beginning of this day, we've taken captive about 100 enemy soldiers.

The Ukrainians say they want to create a buffer zone in this part of Russia to stop Moscow's army from attacking Ukrainian territory in the future. But the blitz offensive is also a major morale boost for Ukraine, commander fighting inside Russia tells CNN, catching the Russians off guard. They were shocked by such a rapid advance, he says. They were in tactical encounters and willingly surrender to the defense forces. And then, every warrior, every soldier who defend their homeland probably had a dream of stepping onto Russian soil and destroying the enemy there. These feelings are impossible to forget.

While the Russians claim they are stopping Ukraine's assault, releasing this video of their jets dropping powerful glide bombs, Ukraine says it shot down a Russian warplane and a security source says it launched the biggest drone attack on Russian air bases since the war began.

Russian leader Vladimir Putin has vowed a crushing response to Ukraine's incursion. But even Kremlin-controlled T.V. acknowledging that won't be so simple.

UNIDENTIFIED MALE (through translator): Unfortunately, I must say that in some settlements, the enemy is holding that ground and we will need to fight them out of there. That will not happen as fast and as easy as we wanted to.

PLEITGEN (voice over): The Ukrainians have said they will continue to push forward and fortify the gains they have made, hoping to withstand the massive counter attack the Kremlin has promised.

Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

CHURCH: As we just heard, Ukraine's progress inside Russian territory has given a critical morale boost to the Ukrainian people. Earlier, we heard from Carl Bildt, co-chair of the European Council on Foreign Relations, and the former prime minister of Sweden, about what could be coming next.

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CARL BILDT, CO-CHAIR, EUROPEAN COUNCIL ON FOREIGN RELATIONS: I think the significance of what has been happening during the last week with the -- with the Kursk offensive is primarily political. What it will mean militarily remains to be seen, but the fact that they are still holding on and did expanding of the week is indeed remarkable. But it has changed the entire political picture.

I mean, Putin has since the rather unsuccessful Ukrainian attempt at a counter offensive last summer. He has tried to build up the narrative that sort of village by village, he will grind down Ukraine. There was really no way they could succeed.

It was only a matter of time until he could win. That's what he's been trying to build up inside Russia and national. And then, suddenly, out of the blue, comes this and destroys that particular narrative.

It changes the political atmosphere. It changes the morale, the spirit. And in Kyiv, it's up obviously, where it's been somewhat subdued for a couple of months. And in Moscow it's disarray and sort of pessimism, where it is heading.

So, I think it's a completely different picture of the war where it's heading. While before the Kursk offensive, there was these, a lot of peoples or grad in part to Ukrainian defeat.

[02:15:06]

Now, it's a different race, it's a different situation.

(END VIDEO CLIP)

CHURCH: As we've reported, Ukrainian officials say they do not plan to annex the Kursk territory and that they are occupying the land as a way to secure their own border.

Health officials are concerned the ongoing mpox outbreak in Africa is just the tip of the iceberg. Still ahead, new steps to contain the virus as its more dangerous strain spreads to new countries.

Plus, we will hear from a Greek sculptor on how he plans to rebuild his life after wildfires destroyed, his artwork.

Back with that and more in just a moment.

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CHURCH: Welcome back, everyone. The ongoing mpox outbreak in Africa is now officially a global health emergency. The World Health Organization made the Declaration on Wednesday after a more deadly strain of virus called clade Ib spread to four new countries.

Until recently, it's been contained to the Democratic Republic of Congo. Mpox has infected more than 17,000 people in Africa this year, killing more than 500 of them. The WHO chief is concerned the virus could keep spreading.

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TEDROS ADHANOM GHEBREYESUS, DIRECTOR-GENERAL, WORLD HEALTH ORGANIZATION: It's clear that a coordinated international response is essential to stop these outbreaks and save lives.

A public health emergency of international concern is the highest level of alarm under international health law.

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CHURCH: Mpox, formerly known as Monkeypox, can easily spread through close contact among people or through contaminated items. The WHO is moving to ramp up vaccinations and other health measures.

Anne Rimoin is a professor of epidemiology at UCLA's Fielding School of Public Health, and she joins me now from Los Angeles.

It's great to have you with us.

ANNE RIMOIN, PROFESSOR, UCLA FIELDING SCHOOL OF PUBLIC HEALTH: Thanks for having me.

CHURCH: So, the World Health Organization is declaring monkey pox a global health emergency with a rapid spread of a new form of the virus across Africa, sounding the alarm, and you're just back from the Democratic Republic of Congo. What is the situation there?

RIMOIN: Well, Rosemary, I did just get back from DRC, just this last weekend. And you know, there is a lot of concern about the rapid increase in these cases, and the need to really be able to employ tools that are going to be able to help this country and all of the surrounding countries get in front of this virus, and that means more diagnostics in place to be able to detect cases, help with public health messaging, vaccines and therapeutics, all of which will be -- definitely, all of -- access to all of these things will certainly be improved with this public health emergency of international concern declaration.

[02:20:09]

CHURCH: So, what do we need to know about how monkeypox potentially affects everyone?

RIMOIN: Well, I think that the key here, as we've said with so many different outbreaks over time, while we've been talking, is that truly an infection anywhere is potentially an infection everywhere.

And so, people might think, well, you know, this is something that's happening in Central Africa and mostly rural, remote places. But, you know, now we're starting to see a change in how mpox is spreading -- how this monkeypox virus is spreading.

We're starting to see more and more cases in the traditional age group, of children under the age of 15, who usually get it from contact with animals, seeing a lot more of those cases, potentially a lot more person to person transmission in households, as a result.

And then, also we are starting to see this other kind of transmission, which is transmission by sexual routes. So, we're seeing it in in various communities, sexual and gender minorities. We're also seeing it in people who are sex workers. So, as a result, we're seeing this spread through sexual networks, potentially very, very extensive sexual networks, and starting to see those cases also spreading and community spread through the traditional way outside of the Democratic Republic of Congo's borders. We've now seen it in, you know, over a dozen countries that are close by.

CHURCH: And this follows an earlier emergency declaration for a 2022- 23 global outbreak. What was done to get that under control, and what was learned from that experience?

RIMOIN: Well, that outbreak, or that -- the global outbreak of mpox, was driven by this -- a clade II of mpox, which really originated in West Africa. And so, the lineage of that clade IIb was responsible for that. And that was primarily sexual transmission, and we saw that happen globally. You know, I think what we were able to do at that point was to be able to deploy very important public health measures, including vaccines and therapeutics, to be able to get in front of it, and to have very strong messaging from all areas. And that was very, very effective to be able to stop the spread and really reduce the impact.

You know, countries like the Democratic Republic of Congo and the other countries that are associated with this outbreak right now are low resource settings. They are in the Global South, and they do not traditionally have access to these kinds of tools.

So, this declaration is going to help them get access to the vaccines that are so critically needed to be deployed in high-risk communities.

CHURCH: Right. Of course, as you point out, very few vaccine doses available on the African continent. So, what's being done to improve that situation?

RIMOIN: Well, there have been some donations of vaccine that will be made available. But remember, these vaccines. In particular, the JYNNEOS vaccine that's going to be made available is a two-dose vaccine.

So, while you may have 50 or 70,000 doses of vaccine, that really means you have half of that available to make -- to have people be fully vaccinated.

So, you know, getting that vaccine is going to be very complicated. The African CDC estimates that there is a need for approximately 10 million doses. And right now, there are far fewer doses than that available. So, hopefully this declaration will really spur these the companies that are making vaccines, to make more vaccine, and make it readily available to these countries.

CHURCH: Yes. Let's hope that happens. Anne Rimoin, great to have you with us and explain this to us and all our viewers. Appreciate it.

RIMOIN: My pleasure.

CHURCH: Hurricane Ernesto is turning north and headed out into the open Atlantic Ocean. Right now, the Category 1 storm leaves behind destruction and flooding in its wake after lashing Puerto Rico and knocking out power to half of the island.

The U.S. National Hurricane Center predicts the storm could strengthen to category three by Friday. They expect Ernesto to slow down as it approaches Bermuda, dumping up to nine inches, or nearly 230 millimeters of rain on the island.

Well, meantime, in the Pacific, Typhoon Ampil continues to grow stronger in warm waters as it surges toward Japan.

[02:25:04]

Right now, it's the equivalent of a Category 2 hurricane, with winds of almost 160 kilometers per hour, according to the Joint Typhoon Warning Center. It predicts the storm will only brush Japan's coast.

But Tokyo and other coastal areas will bear the brunt of up to 200 millimeters of rain and winds nearing 120 kilometers per hour in some areas.

Greece and 19 other countries across Europe are currently under heat alerts as they continue to battle ongoing extreme temperatures. And after a short break from the wildfire dangers, the threat level for that is expected to rise again in parts of Greece. CNN meteorologist Chad Myers has details.

CHAD MYERS, CNN METEOROLOGIST: Yes, we got a lull in the wind on Wednesday. But that will not be the case on Thursday. Back to a level four out of five for the fire threat here.

Not to the extreme category that we were on Monday when there was so much damage that occurred there, but still four out of five. And I don't see any help with this wind. You see gusts in there, 40 to 50 kilometers per hour, maybe even up to 60 at times. And that was Thursday, Friday, and this is now obviously into Saturday.

There is not as much light, not as much heat from the satellite picking up here, but you still see how many fires are in parts of Europe. But just have to hope that these things don't ignite or reignite because of the drought, because of the heat, possibly whatever else it's going to take to get these fires out.

We're not seeing the perfect conditions whatsoever here. Clearly, the heat alerts in parts of Europe. Things get a little bit better for Athens by the weekend and into next week.

But still hot here, hot through the Iberian Peninsula and then all of Northwestern Europe, very, very close to what we would consider mild.

Athens goes from 38 back down to 33, where you should be by Tuesday. So, we'll take that no real threat of any significant rainfall that the firefighters would certainly welcome, just sunshine all day, moon all night.

CHURCH: Well, the fires have destroyed homes and businesses across Greece. But one sculptor who lost his life's work in the blaze is vowing to rebuild.

CNN's Eleni Giokos spoke with him.

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ELENI GIOKOS, CNN ANCHOR (voice over): Emotions just too strong to hold for this local Greek sculptor, who lost everything in the fires.

VANGELIS ILIAS, SCULPTOR (through translator): I've lost part of myself, part of my state of mind is here.

GIOKOS (voice over): This is what's left of his pieces, carefully carved by hand using an ancient Greek technique. Years of work, reduced to rubble. So, Vangelis has also stored some of his most prized possession, some of the work he does for fun in this container, there's a secret lock inside. You can't open it. The metal has completely melted. And if you look inside completely dark and the smell of smoke so evidence.

He just doesn't know the status of his work right now and he needs to bring someone in to cut this open.

Many like Vangelis were not insured. They now depend fully on the government assistance plan.

Residents can get up to 10,000 euros in aid. Vangelis estimates 60,000 euros worth of damage, but that's not really what hurts.

ILIAS: When I work on my artworks, I don't do it with money in mind. I work with creativity, aesthetics, and my spiritual state as the guiding principles.

GIOKOS: (voice over): But the fire won't win, says Vangelis. He has vowed to rebuild his life's work stone by stone.

ILIAS: I believe this won't ruin me because I will put in personal work. I believe not. I believe not. And I will fight for it. A flower must bloom from the ashes.

GIOKOS (voice over): Eleni Giokos, CNN, Penteli.

(END VIDEOTAPE)

CHURCH: Coming up, Donald Trump took the stage for a speech on the economy, but still couldn't resist more personal attacks directed at Kamala Harris. Details on his Latest rally just ahead.

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[02:31:48]

CHURCH: Welcome back, everyone. Well, it was meant to be a speech focused on the economy, but U.S. Republican presidential nominee Donald Trump went off-message several times at an event in North Carolina, lobbing insults at Vice President Kamala Harris about her laugh and her intelligence. He also went after her running mate. Those attacks coming before Harris is set to roll out her own economic proposal later this week.

CNN's Kristen Holmes was there for the speech and has more from Asheville.

KRISTEN HOLMES, CNN U.S. NATIONAL CORRESPONDENT: Former President Donald Trump set out to give a policy speech on the economy and for all intents and purposes, he did. It was certainly more off -message than what we had seen in the excerpts from the remarks, but he did talk a lot about the economy. And just before we get into what exactly he said, the note here is the reason that his team has been pushing this idea to Donald Trump, that he needs to focus on the economy. He needs to focus on immigration. He needs to focus on crime, is that if you look at the polling between Donald Trump and President Joe Biden, he out-polled Joe Biden on those three topics. Voters believed he did a better job on those three things. And the plan is for Donald Trump to link Kamala Harris to those same policies of President Joe Biden's, to say that they are the same administration. She is obviously the vice president. So any unpopular policies that Joe Biden had should also be that of Kamala Harris.

Now, obviously, as we have seen, Donald Trump has had rather hard time staying on message or even defining his attacks against Kamala Harris, but he did seem to have some new lines this time around, essentially doing just that, linking Kamala Harris to Joe Biden and those same policies, particularly on the economy. Take a listen.

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DONALD TRUMP, (R) FORMER PRESIDENT OF THE UNITED STATES AND PRESIDENTIAL CANDIDATE: Kamala has declared that tackling inflation will be a day-one priority, think of it, for her, but day-one for Kamala was three-and-a-half years ago. Why hasn't she done it? Kamala Harris won't end the economic crisis, she will only make it worse. And why hasn't she done it? She talks about it. She is doing a plan. You know, she is going to announce it this week maybe. She is waiting for me to announce it, so she can copy it.

(END VIDEO CLIP)

HOLMES: Overall, the speech was fairly light on policy he would actually put in place, other than lowering inflation, lowering cost. But he did commit to one thing, he said the -- if he was elected, the U.S. would commit to cutting U.S. energy and electricity prices by 50 percent within a year to 18 months, not a lot of detail on how exactly he would do it, but the crowd did go wild. The one thing to remember here is, as we talk about the economy, we talk about the economy getting better, which it certainly is by all statistics and measures.

I do continue to talk to voters on the ground who specifically point to cost, not necessarily the economy as a whole, but what things that are important to them that they need every day, what those things cost, like groceries like fuel. And they still say that those costs are impacting them, impacting their wallet, and that's why they believe Donald Trump would be better in office.

[02:35:00]

It is just something to keep note here as when we talk about why his advisers are pushing this messaging so hard and hoping Donald Trump will stay on with that same messaging.

Kristen Holmes, CNN, Asheville, North Carolina.

CHURCH: And while Trump continues to attack Harris on inflation, some new data shows price hikes actually slowed more than expected last month. The Consumer Price Index fell below 3 percent for the 12 months ending in July, a milestone not seen since March of 2021. Wednesday's report builds on another positive report from June, which has helped reassure the markets and the Federal Reserve that inflation is moderating. This could pave the way for the Fed to cut interest rates next month.

Well, the president of Columbia University is the latest Ivy League leader to resign months after pro-Palestinian protests gripped her campus. Egyptian-born economist, Minouche Shafik has faced heavy criticism for her handling of the encampments at Columbia. In her resignation letter, Shafik said it had become difficult to overcome divergent views, adding that the turmoil has taken a toll on her family and she has been distressed by threats and abuse.

Back in April when talks between protesters and the university broke down, students and others, not associated with Columbia stormed a campus building. Shafik called in police who carried out arrests and made sure the encampments were not re-established. Some faculty members drafted a censure motions saying Shafik had violated students' rights to peacefully protest. The encampment at Columbia inspired a series of other demonstrations at campuses across the U.S. and globally.

And we'll be right back.

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CHURCH: Welcome back, everyone. Japan is marking an economic achievement. The country's Gross Domestic Product grew by more than 3 percent in the second quarter. According to government officials, it is the first time in two quarters that Japan has seen positive growth. Reuters initially cited a forecast of a little more than 2 percent for the same period. And here's how the Asian markets are faring right now following the news, you can see the Nikkei up their point 0.78 percent, the Seoul Kospi up 0.88 percent, the Hang Seng down.

Experts warn Japan has to closely watch risks of a downturn and volatility, especially with growing concern of a possible recession in the U.S. While tourists are capitalizing on the unpredictable nature of the Japanese yen right now, Japan's National Tourism Organization says more than 3 million people visited the country in June and it is on pace to break its annual tourism record.

[02:40:00]

One of the big draws for visitors to Japan is getting luxury goods at a bargain price, as CNN's Hanako Montgomery reports.

(BEGIN VIDEOTAPE)

HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): With a lot of cash or the swipe of a credit card, tourists from China, the U.S., Thailand, Australia are buying up Japan's high-end items at an unprecedented rate defined global trends of a luxury slowdown. The reason for the shopping spree, the weak yen.

UNIDENTIFIED MALE: I had to come and help their economy.

UNIDENTIFIED FEMALE: The reason why we come to Japan for traveling.

MONTGOMERY: I see.

UNIDENTIFIED FEMALE: It is much cheaper than before.

UNIDENTIFIED MALE: Yes.

(CROSSTALK)

UNIDENTIFIED FEMALE: (Inaudible) makes a huge difference, yeah.

UNIDENTIFIED MALE: Yes, that's one of the main reasons to be here.

UNIDENTIFIED FEMALE: I was here a couple of years ago when it was like a completely different experience. The amount of money I'm willing to spend, huge difference.

MONTGOMERY (voice-over): As the yen hit historic lows this year, foreign tourists are snapping up luxury goods for less than back home, and buying tax-free doesn't hurt.

MONTGOMERY: The luxury market is booming in Japan as it sees record foreign tourist numbers and spending with estimates surpassing $54 billion this year alone.

MONTGOMERY (voice-over): But elsewhere, big brands are feeling the pinch. LVMH, the world's largest luxury group and giant behind Louis Vuitton saw a 14 percent revenue dip in Asia, excluding Japan, during the second quarter of this year compared to 2023. Brands like Ferragamo and Kering also took a hard hit. But Japan is bucking the trend, even riding a wave of celebrity-driven demand for vintage luxury.

UNIDENTIFIED MALE: Yes, Japanese vintage is very popular. From a global perspective, Japan excels at curating, appraising items and distinguishing between authentic and imitation designer pieces.

MONTGOMERY (voice-over): Japan's vintage scene already a top destination for high-quality finds, is also getting a boost from the weak yen. Asia's second-hand luxury market is set to reach $4.38 billion this year, 165 percent bigger than the U.S. with Japan leading the way. But with higher Japanese interest rates looming and a fluctuating currency, experts warn this travel trend may not last.

UNIDENTIFIED FEMALE: So, the price harmonization across region will eventually take place. So far, it's been so volatile, it has not been caught up. But these two factors will kick in and the arbitrage opportunity will be lessened.

MONTGOMERY (voice-over): For now, tourists are cashing in on this luxury paradise, while their wallets can hold up demand.

Hanako Montgomery, CNN, Tokyo.

(END VIDEOTAPE) CHURCH: Thanks for joining us. I'm Rosemary Church. "World Sport" is next. And then I will be back in about 15 minutes with more "CNN Newsroom." Do stick around.

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