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Global Market Sell-Off Intensifies; United States Stocks Sink In Early Trading After Global Sell-Off; Prime Minister Resigns Amid Protests; Bangladesh Army Chief: The Army Will Not Fire At Anyone; Israel: "Multiple" Hezbollah Targets Sturck In Lebanon; Israel On High Alert Amid Fears Of Potential Iranian Attack; Market Turmoil Could Complicate Kamala Harris's Economic Pitch; Far-Right Rioters Set Fire To Hotels Housing Asylum Seekers. Aired 10-10:45a ET

Aired August 05, 2024 - 10:00:00   ET

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

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANNNOUNCER: Live from CNN London, this is CONNECT THE WORLD with Becky Anderson.

(END VIDEO CLIP)

[10:01:32]

BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: Well, it's 10:00 a.m. on Wall Street. The markets been open for 30 minutes in New York, not good news for

investor, certainly, if you're an investor.

On the -- on the side of stocks going higher, a global sell-off is intensifying as concerns grow over the U.S. economy.

Here are the headlines this hour, with tensions heating up, with Hezbollah. Israel bracing for Iranian retaliation as international diplomacy moves

into full gear.

The prime minister of Bangladesh has resigned, and the military says it will form an interim government.

And Keir Starmer chairs an emergency meeting following a series of riots in the U.K. over this weekend.

Well, it's 3:00 p.m. here in London. 10:00 as I say, in New York, after three weeks of losses, it is a brutal start to the new trading day and the

new week on Wall Street.

It's not only U.S. stocks. This is the story there. This follows indices around the world that have been tumbling as fears of a U.S. economic

slowdown send shockwaves through the global markets.

These were prompted by Friday's disappointing U.S. jobs report, and everyone's got their eye now on the Federal Reserve, wondering whether the

U.S. central bank has waited too long to begin cutting interest rates to avoid a recession.

Of course, the Fed has been trying to slow this market down for some time. Have they left it too late? Let's get Richard Quest on this market

meltdown.

I mean, there's an awful lot going on here. And you can argue that this sell off, off the back of the jobs report Friday, which was weaker than

expected, just sort of pricing in a whole load of other stuff on the tech market, et cetera.

(CROSSTALK)

RICHARD QUEST, CNN INTERNATIONAL ANCHOR: Yes.

ANDERSON: What's your sense of what we are seeing?

QUEST: What we're seeing is, let's bifurcated two distinct things. You've got, if you like, the A.I.-hype being the froth coming straight off that,

and that's coming down towards reality.

But perhaps the more significant thing is, of course, what's happening in the wider and the underlying economics. And here, there is the realization

that the medicine that the Fed has been giving the patient, i.e., the U.S. economy is working, the economy is slowing down exactly as it was intended

to. The leading, if you will, inflation has fallen down exactly as it was intended to. And the opposite side of that same equation, unemployment has

risen.

You asked exactly the right question, have the Fed been too late to adjust its policy?

Well, they really had no choice, at one level, Becky, because they had to prove their interest, their inflation, cutting credentials. Their

credibility was on the line, having allowed inflation to rise so dramatically, they had to prove they were serious.

And so, they took a risk on the opposite side of the scales, with unemployment and with slowdown leading to recession. Bear in mind, there is

still only 25 percent says Goldman, of a recession -- of a likelihood of a recession, far more likely sluggish growth.

ANDERSON: Yes. I mean, not -- that there are others who are -- who are putting a recession, you know, at a slightly higher percentage. You've just

spoken to Mohamed El-Erian, for example, he puts it at 35 percent. He is not changing that view, although, he says there is a risk to the upside at

this point.

But again, you are making a really good point here. It's like, you know, the Fed is, you know, charged with ensuring it can get on with its job --

(CROSSTALK)

[10:05:04]

QUEST: Right.

ANDERSON: Which is pulling inflation down from those heady days of what? Around about 10 percent at one point, back down to about three percent.

(CROSSTALK)

QUEST: Right.

ANDERSON: It doesn't want to get involved in politics. That's what Jerome Powell is committed to. This is all about how you can manage the soft

landing, as it were.

(CROSSTALK)

QUEST: OK.

ANDERSON: The question is whether he is been able to do that.

QUEST: Right. But bear in mind, two years ago, back in April of 2022, if there had been a recession or there had been a problem, interest rates were

just about zero. There was nowhere for the Fed to go. Now, we've got about five percent worth of interest rates built in the market.

So, he -- the Jerome Powell and the FOMC has lots of room. This was the -- this was the worry back in 2020, 2022. There was nowhere to go if you

suddenly needed to cut rates. You had to use quantitative easing to stimulate growth if you were in trouble.

Now, they've got 500 basis points. They can cut, they can cut, they can cut.

Now, have they left it too late to do it? It's a moot point. In the rear- view mirror, in a year or two, you and I will be saying they did leave it too late. We won't. know.

We have still got growth of 2.2. percent in the U.S. economy. So, to kill off that and go negative for two percent -- for two quarters of GDP would

be quite something. It's an interesting --

I don't think they've left it too late. I think they are going to have to move in September, moot point on whether it's quarter or 50 basis points.

Ultimately, we're going to see three rate cuts before the end of the year.

ANDERSON: And let's remind ourselves, because I just want to bring up these markets here.

(CROSSTALK)

QUES: Yes.

ANDERSON: You suggested that we probably won't see these markets end as they started today. And I got to say, I think you're going to -- you are

absolutely right.

(CROSSTALK)

QUEST: Yes.

ANDERSON: We're only what? An hour and 36 minutes into the trading day. That NASDAQ was off more than six percent on the open it's down --

QUEST: Yes, yes, knee jerk.

ANDERSON: Yes, exactly. Exactly. So, you know, and there will be lots and lots of people who aren't -- who aren't trading on stocks going higher, of

course.

I mean, the markets are a really big place, and there is lots of people trading, you know, lots of different ends of this market. So, and this is

all about one job's report, which does not make a trend weaker than expected.

QUEST: Right.

ANDERSON: And the trend is getting lower, of course, I mean, it is weakening, but I guess --

(CROSSTALK)

QUEST: I think.

ANDERSON: It's got gone, Richard.

QUEST: I think that one of the big problems we've got with markets now is that unlike the old days of pension funds, where you had a corporate

pension fund, and it paid 70 percent of your pre-tax policy -- of your -- you know, retirement income. Now, you have 401Ks. And everybody is juggling

in search of yield, and that creates its own momentum in a market.

Everybody wants to make the most possible, because you're managing your own retirement in a sense. And that's a real worry for a lot of people in this

country, and indeed in Europe, where they have these -- where everybody now has money purchase pension schemes.

So, you take a look at the market, and we -- and then, we've got the Dow 30, or we've got the S&P or we can show some individual stocks, but you see

stocks that have been beaten up by 30 percent -- 20, 30 percent until we had last week.

And you start to ask yourself, well, if I'm taking a five-year view, and by the way, I've just been looking back dot-com boom and bust share prices.

Take Cisco at the -- at the fall -- at the fall of the dot-com boom and bust, Cisco came in at $18, $19 a share.

On an inflation basis, it should be about $30 a share. It's $45 a share today. So, on a longer-term basis, this is still where the action is, if

you will. And there will be -- the question, of course, is timing it.

Look at this. Right. What was Nvidia down when you -- Nvidia. When we spoke an hour ago, it was off 13 percent, it's come back to 6-1/2. My guess is,

pure guess, Becky. Do not take it to the bank. My guess is, it bounces around here for most of the day and probably maybe gains just a little bit

more than that.

ANDERSON: Yes, I feel the same way, but we will -- we'll see what happens. We are only 38 minutes into the trading day.

QUEST: Yes.

ANDERSON: But off times, let's remind ourselves, off times, I mean, it would be interesting to see what the volumes were like in this first 40

minutes of trading --

(CROSSTALK)

QUEST: Oh, yes. Absolutely. Summer, all those.

ANDERSON: Because that's where the action has been, of course, right out of the gate. And, you know, I wouldn't be surprised, we see very little volume

in these stocks later on in the day. It's good to have you, mate. Thank you very much indeed.

QUEST: Thank you. Thank you.

ANDERSON: Wall Street's fear gage has risen to its highest level since 2020 at the height of the global pandemic, and the narrative around the U.S.

economy is shifting. And you can count on CNN for insight on all of this. Just head to CNN digital or use the CNN app on your smartphone.

Right. Let's have a look at other news today, and the prime minister of Bangladesh has resigned after nearly 100 people were reportedly killed in

protests on Sunday.

[10:10:00]

Protesters stormed Sheikh Hasina's residents in Dhaka, the army chief says the military will form an interim government.

Thousands of demonstrators turn out again today. The unrest began last month over a quota system for civil service jobs.

Well, my next guest says Bangladesh needs a political reset. Naomi Hossain is a global research professor in development studies at the School of

Oriental and African Studies at the University of London. Good to have you.

Elaborate, if you will, on what you said. You've said that the country needs a political reset. What do you mean by that?

NAOMI HOSSAIN, GLOBAL RESEARCH PROFESSOR, SOAS UNIVERSITY OF LONDON: I mean that we've been in this moment before, several times, in fact, most

recently in 2006-2008 when the BNP, the opposition -- now the opposition, well, actually, I'm not sure if they are the opposition anymore.

But they were run overturned by a military backed, caretaking government, which then took power for two years and tried to clean up the politics in

Bangladesh, after which Sheikh Hasina's Awami League came to power in a remarkably free and fair election with a landslide, and then ruled for 15

years.

The politics just aren't -- just aren't working for Bangladesh. They are very competitive. It's a winner takes all system. When somebody wins an

election, they basically crush the opposition. We can't go on like this.

We have to have a better political system that's more pluralist, more inclusive of young people, of workers, of ethnic minorities of all sorts.

And that's what we're hoping for now.

(CROSSTALK)

ANDERSON: Right. Well, that is probably, you know, a story for some time down the road. Today, is what I want to concentrate on, then next, take a

listen to the Bangladesh army chief.

(BEGIN VIDEO CLIP)

WAKER-UZ-ZAMAN, BANGLADESH ARMY CHIEF OF STAFF (through translator): I have given orders. The army will not fire at anyone. The police will not fire at

anyone.

(END VIDEO CLIP)

ANDERSON: Is this a realistic promise?

HOSSAIN: I mean, it seems to be being followed, and the result is that there is a lot -- a lot of chaos out there on the streets. As far as we can

see, you have seen the images from gone along (PH) the prime minister's house, protesters or just people in Parliament buildings.

There are some repercussions, some violent reprisals, which are really regrettable, and I really hope that they get controlled. But the army don't

seem to be using any force to control it so far.

But just on this point about that's for tomorrow. They are actually already designing this new interim government now. So, these are questions for

today.

ANDERSON: A very good point. Very good point.

Can you just explain what some of the challenges that we are likely to see from Bangladesh, as the country moves forward from where it stands today?

HOSSAIN: I think the challenges are the legacies of history really weigh very heavily on political process in Bangladesh. There is a lot of

political violence that has been throughout the history. It's very personalized political violence. And people do know, I think that Sheikh

has seen as father and her entire family, apart from one sister, were assassinated back in 1975.

So, there is a lot of anger and pain, and this really has spread quite across the population. The last month's violence has done nothing to dispel

that. I think really a lot of people are talking about the need for a really broad peace and reconciliation and justice process before we really,

we can get this political reset that everyone is hoping for.

Well, we will absolutely stay on this story, continue to report on it as we do move forward. And it's very good to have you on today for your insight

and analysis and what is a really important story. Thank you.

Well, next up new violence at the border between Israel and Lebanon. We examine the growing fears of wider war in the Middle East.

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[10:16:05]

ANDERSON: Well, the Middle East is on a knife edge as it faces the prospect of a potential attack by Iran on Israel. This follows an isle of conflict

between Israeli and the Iran-backed Hezbollah group. The Israeli Air Force says it struck multiple Hezbollah targets in Lebanon overnight after

Hezbollah said it sent drones to attack a military target in northern Israel.

Several countries, including the US, UK and France, are urging their citizens to leave Lebanon.

Well. Ben Wedeman is in the Lebanese capital of Beirut. Jeremy Diamond has reaction from the northern Israeli city of Haifa.

Ben, let me start with you. What are we hearing about last night's attacks?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, last night, according to Hezbollah, they fired drones at the headquarters of the 91st

division of the Israeli military, aiming at barracks that were housing soldiers and officers.

And they claimed that several of them were killed or wounded. The Israeli military is saying that most of those drones or projectiles were

intercepted, that one fell, but only two members of the military were slightly, moderately injured, a soldier and an officer.

But it's important to keep in mind that this sort of daily back and forth between the Israelis and Hezbollah is -- has become really the background

noise in Lebanon.

Every day, Hezbollah, for instance, yesterday, they claimed six strikes on Israeli targets, five so far today. So far today, the Israelis have carried

out a variety of airstrikes, artillery barrages and drone strikes as well.

What we are seeing here is growing concern about the possibility of a regional war. For instance, here in Beirut this morning, there were two

large bangs, and people rushed to their windows and saw fire on the edge of Beirut.

It turned out, that was just a brush fire, and the bangs were Israeli war planes breaking the sound barrier overhead. That scene really is just

psychological warfare by the Israelis. It's frequent in southern Lebanon, but less frequent here in Beirut, that they break the sound barrier.

Now, what we are seeing is that Turkey is the latest country to add itself to the list of those countries that are calling on their nationals to leave

the country as quickly as possible.

It's getting extremely difficult to find a place on a plane flying out of Beirut. We know that, for instance, the American embassy has advised us,

nationals in the country, just book any flight just to get out of Beirut at the moment, although, despite this concern, what we are seeing is people

are going about their lives as best they can. There doesn't seem to be a run-on petrol stations for fuel or stores for food.

Of course, keep in mind Becky, that for 10 months now, tensions in Lebanon have skyrocketed with fears like now of a regional war, and then, there is

been a calming of the situation, this time is particularly much worse.

But I think most Lebanese, at this point, even though they are afraid of what might come, have become used to this up and down of tensions, and are

just hoping that this time, it doesn't actually come to pass.

ANDERSON: Yes, of course, as many of them will be, you know, thinking about what happened four years ago, and the explosion, of course, at the port

there, August the fourth --

I know, I remember you and I talking about this and, you know, people wondered at the time whether that sound, the explosion was of Israeli jets

breaking the sound barrier, of course, again, only to find out that there was, you know, that actual event that much been eerily similar sort of

moment in time when you heard the sounds last night.

[10:20:16]

Ben, it's good to have you.

Jeremy, what is Israel's prime minister saying, particularly in light of these threats from Iran? Because there are threats from Iran. Iran says it

will respond.

JEREMY DIAMOND, CNN CORRESPONDENT: That's right, and as Iran says it will respond, the Israeli prime minister is making clear that Israel will defend

itself and will retaliate for any Iranian attack on Israeli soil.

The Israeli prime minister over the weekend, saying several times that Iran will pay a "very heavy" price, should it choose to carry out attacks

against Israel, making clear that Israel is determined, as he said, to stand against Iran on every front and in every arena. He also said that the

Israeli military is prepared for any scenario.

We have also heard from the Israeli Defense Minister Yoav Gallant, saying that Israel is very prepared to quickly defend itself, but then also to

move from defensive mode into offensive mode.

And the Israeli military has told us this weekend that it was in the process of reviewing potential retaliatory actions, should Iran and its

proxies attack Israel. So, not only a heightened state of alert to defend Israel against potential attacks from Iran and its proxies in the region,

but also clearly preparations underway for a swift counter attack should it come to that.

And that is, of course, why there is such a serious risk, why there are so many concerns at this moment of very dangerous escalations as we could very

quickly see a domino effect that carries this entire region into war.

We know that there are frantic diplomatic efforts at this hour to try and prevent that from happening. Messages being delivered to Iran to try and

measure its response. And clearly that rhetoric from the Israeli prime minister and other Israeli officials intended to try and get Iran to

perhaps recalculate as it, you know, seeks to determine what its next moves will be.

And we don't yet know how imminent a potential Iranian attack against Israel will be. For now, Israeli civilians have not been told by the

Israeli military to do anything differently in their day to day lives that home front command guidance, which is issued to tell Israelis to stock up

on supplies, to be -- you know, limit large gatherings, be close to a bomb shelter, that has not been issued yet.

But there are local guidelines here in Haifa, as well as in the -- in Jerusalem, urging residents there to begin to make some preparation. So,

clearly, different tack, depending on which city in Israel you are. But certainly, we are at a moment of tension.

And amid all of this, General Kurilla, the top U.S. general in the Middle East, visiting the region here, expected to meet with Israeli officials, as

well as others in the region, as there is also this effort underway to try and strike that international coalition once again, that defended Israel

from that Iranian attack in April, that enormous air defense effort that was orchestrated across the region.

General Kurilla certainly seeing if he can bring that coalition back together again to defend against yet another potential Iranian attack.

Becky.

ANDERSON: It's good to have you, Jeremy.

And Ben, thank you both. And if you have not already done so, please do sign up for our MEANWHILE IN THE MIDDLE EAST NEWSLETTER. Scan the Q.R. code

on the right of your screen, or pretty much the center of your screen.

You will get more on the big stories from the region sent right to your inbox, as well as articles explaining the background and context of so many

of the stories dominating the global agenda.

All right. Let's get you up to speed in some of the other stories that are on our radar right now. And today marks one year since former Pakistani

Prime Minister Imran Khan was arrested and put behind bars. Khan was jailed on various charges ranging from corruption to leaking state secrets. In a

written interview, Khan told Reuters he blames the military for his ouster.

A tornado watch is in effect for more than 11 million people in parts of Florida and Georgia in the U.S., as Hurricane Debby moves inland. The storm

could also bring catastrophic flooding along parts of the U.S. East Coast, dumping a month's worth of rain in the coming days.

Protesters say they will stay on the streets in Nigeria, even after demonstrations were said to have turned deadly over the weekend.

Amnesty International says security forces killed 13 people. The police deny this, saying they did not use lethal force. Protests erupted

nationwide over the economic crisis, which is so deep. Some Nigerians can't even afford food.

ANDERSON: Well, U.S. stocks skid in early trading after what was a global sell off. What's buying the market meltdown.

[10:25:02]

Plus, a look at the combination of politics and money is just ahead.

And looting and rioting in the U.K., as far right protesters target hotels, housing, asylum seekers. A look at what is going on here. We're

broadcasting out of London for you after this.

(COMMERCIAL BREAK)

ANDERSON: Welcome back. You're watching CONNECT WORLD with me, Becky Anderson.

Well, more now on our top story, which is a bruising start on Wall Street.

The Dow, one point down more than a thousand points. The NASDAQ and the S&P really taking a beating on the opening. This coming after three weeks of

losses. Fears of a U.S. economic slowdown are now sending shockwaves through markets, and that is affecting investors around the world.

Everyone's got their eye on the U.S. Fed -- Federal Reserve, of course, wondering whether the U.S. central bank has waited too long to begin

cutting interest rates. Chicago Federal Reserve President Austan Goolsbee, talking earlier to CNBC, says the Fed will react to any deterioration, and

I quote there in the economy.

Well, the latest market downturn sparked by what was a disappointing U.S. jobs report, and that has made Kamala Harris's economic message in her run

for president more complicated.

Despite inflation and the public's generally sour mood on the economy, the Biden-Harris administration could always lean on what has been a strong

jobs market. But now, that could change, with Republicans seizing on the news with what just more than 90 days to go before the election.

I want to bring in Allison Morrow, and you have written a digital piece on this, and you start it by pointing out, "The Biden Harris administration

couldn't shake the vibe session, even when the economy was on a tear. So, is it going to be even more difficult as a road ahead for the Harris

campaign? Now, that things are looking slightly more complicated.

[10:30:02]

ALLISON MORROW, CNN BUSINESS SENIOR WRITER: It's certainly more complicated. And I think we need to be careful to note that one month

doesn't make a trend. This was a very, very bad jobs report, relative to expectations and relative to the strength that came before it.

But we have to remember for the last two plus years, it's been a very strong job market. So, this was a surprise and you know, markets hate a

surprise. So, one analyst compared investor reactions are often like hyperactive first graders who are just trying to out anticipate when the

music will stop playing musical chairs.

You know, there is a big reaction today. And I think for Harris's campaign in particular, it's going to be difficult to see what happens in the next

month. Obviously, we don't have a lot of time left before the election.

ANDERSON: And we probably shouldn't be surprised if actually that jobs report last week is revised upwards, oftentimes they are, we've seen a lot

of that happening quite significant revisions across some of these economic reports. So, don't be surprised by that.

But I'm not suggesting for a moment that I know anything that -- you know, know anything about what will happen with this report. But like I say, it's

a caveat here.

Look, whether or not Jerome Powell wants his decisions, here's the broader sort of Fed's decisions to be deemed political. And he's determined they

won't be, he's determined that the decisions that are made by the FOMC are decisions made based on the economic picture, there will be many people who

will accuse the Fed of getting involved in politics, because, frankly, we are what one FOMC meeting away from the election at this point. And on main

street, things are, let's be clear, quite tough.

MORROW: Absolutely. I mean, the Fed is -- really values its independence, it is always trying to stay out of the fray of politics. And you know,

Jerome Powell's favorite expression is we will be data driven, we will look at the data, we will look at the economy, they have a dual mandate of

maximum employment and price stability, and they've got price stability, and they've had maximum employment. And now that's looking a little shaky.

But I think what we were talking about earlier with the revisions, it kind of underscores how managing an economy, especially the one the size of the

United States is not exactly -- it's more art than science, there's not an easy input output kind of directive. The Fed has broad tools that it's

using, and it will keep using them as best it can. But it is a really difficult balance to strike.

ANDERSON: You end your piece by suggesting that this is complicated. And I think that's, you know, to your -- to your last point, it is.

I mean, there are briefly, you know, questions being asked about whether, you know, the toolbox is sufficient for the Fed to ensure that it can

manage this economy into a, you know, a good and sort of sustainable slowdown as it were.

You know, what's the received wisdom out there out there about whether the Fed has what it needs on top?

MORROW: Yes, I think when we look at the economy of the last two years, especially a lot of it is on the Fed's shoulders.

And you know, when the economy is in a slowdown, it's a lot more incumbent upon fiscal policy, that's lawmakers to stimulate the economy. And when the

Fed -- sorry, when the economy is running too hot, all of the responsibility kind of falls on the Fed's shoulders. And there's endless

academic debate we could have about whether that's too much power in the hands of unelected officials. But you know, I think the Fed is going to

stick with its -- you know, it's trying to stay above the fray and not get in the muck of politics as it has historically.

ANDERSON: Absolutely. Then we go back to the .com. Bubble and -- bubble and its bust. I'm really a lot of the -- you know, a lot of that around what's

going on at present. People reminding us all you know, if you're old enough to have been around at that point, as I am, you know, we don't want to be

there again. Let's see, you and your piece, so to say, by acknowledging it's complicated, isn't exactly a slam dunk message to voters (ph).

Allison, thank you.

MORROW: Thank you.

ANDERSON: Well, ahead on CONNECT THE WORLD, British Prime Minister Keir Starmer chairs an emergency security meeting after a weekend of far-right

rioting across the United Kingdom. I'm going to talk My next guest about what is going on and what might happen next.

(COMMERCIAL BREAK)

[10:36:57]

ANDERSON: Well, the U.K. was hit by a series of riots over the weekend. Rioters broke in to hotels, housing, asylum seekers attempting to set fire

to them. Refugee councils condemned the attacks.

The riots began after three young girls were killed in northwest England. This was exacerbated by the far-right spreading disinformation including

claims the attacker was an immigrant. Well, Prime Minister Keir Starmer has condemned the riots. He's also chaired an emergency meeting to deal with

the unrest.

Well, joining me now is Milo Comerford, the Director of Policy and Research for counter extremism at the Institute for Strategic Dialogue. It's good to

have you. I just want -- for the benefit of our international viewers, for you just to explain what is happening here in the U.K. from your

perspective.

MILO COMERFORD, DIRECTOR OF POLICY AND RESEARCH FOR COUNTER EXTREMISM, INSTITUTE FOR STRATEGIC DIALOGUE: Of course, Becky, so almost exactly a

week ago, there was a terrible stabbing in the town of Southport in northwest England, where a 17-year-old murdered three young girls and

injured many more.

Because of reporting restrictions in the U.K., there was very little information about the individual who carried out this attack, leading to a

huge online vacuum of information which was filled as you mentioned with missing disinformation about the attacker's identity, claims that this was

a Muslim who was on a security watch list that they were an illegal immigrant, facts that have been since proven or disproven.

But this was really seized upon by those who were looking to spread an anti-migrant, anti-Muslim agenda. And this has bubbled out into real world

violence up and down the U.K. over the past week.

ANDERSON: And it's horrendous to see it. We just heard from the Prime Minister who chaired an emergency what's known as Cobra meeting today,

let's just hear from him.

(BEGIN VIDEO CLIP)

KEIR STARMER, BRITISH PRIME MINISTER: We'll ramp up criminal justice. They've already been hundreds of arrests. Some have appeared in court this

morning. I've 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'd been absolutely clear that the criminal law applies online as well as offline. And I'm assured that that's the approach that is being

taken.

(END VIDEO CLIP)

ANDERSON: Yes, this dissemination of myths and disinformation is awful. And clearly, the prime minister acknowledging that something that that will be

dealt with what is going on online will be dealt with as they deal with what is happening physically. And we're looking at some of the images from

over the weekend.

Do you think what we've heard from Keir Starmer, the new prime minister, and let's remember, you know, he's only been in position for a month, do

you think that will be enough to calm things down?

COMERFORD: I think at the moment, we're at a very raw point in the cycle. And unfortunately, we're seeing this ongoing violence, which has really

proliferated over the course of several days. I think to some extent, there will be a backward look of what could have been done better. What -- how

policing might have been more proactive how social media companies might have been able to get ahead of this by curbing the spread of viral

disinformation on their platforms.

[10:40:11]

For the time being, I think that there will be, you know, short term efforts to really seek to bring those two accounts who've been violently

targeting Muslims and migrants, but I think there will be a broader soul searching that follows to really understand how we can address the root

causes of this violence in this country.

ANDERSON: The new Home Secretary Yvette Cooper had this to say, "make no mistake, there will be a reckoning for the individuals who took part in

this violence, those who whip them up on on social media and in online chat forums and those who have felt emboldened by this moment to stir up racial

hatred." She is clearly attributing a lot of what's happened here to online far-right hate.

And again, for the benefit of our viewers who may not be across what is going on here in the U.K., is that your assessment as well?

COMERFORD: I think there is an organized far-right movement at the heart of driving much of this hate and violence, of course, as with any protests,

you know, you have a broad group of people who engage in opportunists and those looking to hang on to the coattails of this kind of violence

existing. Certainly the nature of authority extremism in the U.K. is a very decentralized, sort of online organized phenomena where we see these huge

sprawling Telegram channels being used to organize offline violence. You see the spread of viral content on TikTok, and you see on X the

proliferation of the sort of disinformation which has led to direct violence.

So, I really do think that in many ways, this is an example in a case study of the sort of narrow jump between this kind of information threat online

and real world violence.

ANDERSON: This has been a week's worth of violence now, since the awful, awful tragedy in Southport a week or so ago, the loss of three young girls

at a Taylor Swift themed sort of yoga party as it were. Do you expect to see this continue at this point?

COMERFORD: I think we have to wait and see. Unfortunately, there are still agitation and mobilization happening in these online spaces. And there

still seems to be a large degree of enthusiasm from those driving this violence to sort of continue the momentum of the past few days.

The police assured that they are in a position to be able to confront these violent protesters and rioters. And that really, I think, you know, getting

a handle on this will be of absolute critical importance to the government before we start to look more broadly at how we address the root causes of

these issues.

ANDERSON: Good to have you. Thank you very much indeed.

COMERFORD: Thank you.

ANDERSON: Well, folks, you've been watching CONNECT THE WORLD live from London. Normally, you of course broke house out of Abu Dhabi in the UAE but

we're here for a couple of weeks in London and you have had what is our top story.

Today, the roiling markets. "WORLD SPORT" is up next. Thank you for watching.

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