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Turmoil in Egypt; Emerging Markets` Impact on Stocks
Aired January 27, 2014 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CARL AZUZ, CNN ANCHOR: Welcome to CNN STUDENT NEWS. I`m Carl Azuz. Today`s commercial free coverage kicks off in Egypt. Earlier this month, Egyptians went to the polls and approved a new constitution. The government said that vote was about 98 percent in favor, two percent opposed, but here`s the hitch: many people who oppose the government and the new constitution likely didn`t vote. And there were reports of intimidation and arrests to keep them away.
It`s the latest page in a turbulent chapter for Egypt. Massive protests led to the resignation of Egypt`s longtime leader years ago, but since then, Egypt has struggled to stabilize.
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REZA SAYAH, CNN CORRESPONDENT: It is here, January 25, the three-year anniversary of the 2011 Egyptian revolution and this is where it all started. Tahrir Square. The heart of the revolution, really the heart of the Arab Spring. It`s about 1 p.m. in the afternoon. Not a lot of people here at this point. Several thousand people, lots of pictures and posters of the Army Chief General Abdul Fattah al-Sisi, and lots of security, tanks, police, soldiers. Everyone who walked into Tahrir had to go through a metal detector. It is now two in the afternoon, and we are starting to see the first signs of antigovernment protests.
This is a small group of young demonstrators speaking out against military rule, also speaking out against the Muslim Brotherhood and Islamists. And this is what`s raising tensions today. You have supporters of the government out in Tahrir Square. Several blocks away you have interim government protesters.
Around 3 p.m. clashes are up in several Cairo neighborhoods, when antigovernment demonstrators marched towards Tahrir Square. Police quickly turned them back using tear gas. 4 p.m., the crowd in Tahrir is bigger, but nowhere near some of the square`s largest turnouts. Here, it`s the army chief who`s Egypt`s hero.
"He will keep the country safe," says this woman. He is a good man. A strong man. IN the city of Suez 150 kilometers east of Cairo state TV reports another bomb attack, targeting a key police training academy. 16 people are injured. By 5 p.m. several pro-democracy movements tell supporters to go home, calling off planned rallies in Cairo against the military and the Muslim Brotherhood. But small pockets of clashes continue several blocks away from Tahrir Square.
"People want the fall of the regime," protesters scream. By 7 p.m., crowds in Tahrir start to thin. State media continues its day long coverage reporting millions turning out throughout Egypt to celebrate the anniversary of the revolution.
But on state media, where the message is heavily controlled by the government, there was little mention of Egypt`s deepening political crisis, a seemingly wising insurgency that`s using more bombs, allegations of human rights violations and a country that`s still struggling to deliver the freedom, justice and democracy that many Egyptians fought for here, on this day three years ago. Reza Sayah, CNN, Cairo.
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AZUZ: A lot of eyes will be on the U.S. stock market today. It`s one indicator of how the economy is doing, and last week, indications were not so good.
The Dow Jones industrial average saw its worst week of losses since November 2011. Several reasons for it: one corporate earnings. Several big businesses said they earned less than investors expected them to. And that caused stocks to drop. Two, the U.S. Federal Reserve, America`s Central Bank, has been helping the economy. It`s begun pulling back that help and that could hit stocks. Third reason, emerging markets. These are financial markets of countries whose smaller economies are just starting to grow. And when their economy has slowed down, there could be ripple effects.
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ISA SOARES, CNN CORRESPONDENT: Call it a bad case of the emerging market flu: unexpected false moving and unpredictable. This sell-off has been gathering speed for weeks, in both stocks and currencies. On Friday, the Argentine peso fell off a cliff, falling 15 percent for the week. The Turkish Brazilian and South African currencies also tumbled. Weakness in emerging markets is now spilling over into stock markets the world over.
Almost three stocks are coming off their worst week since May 2012. And with stock markets expecting to fair to cut stimulus yet again this week, less liquidity could lead to more money being yanked from emerging markets as investors take a more critical eye. And with China slowing, countries like Brazil and South Africa, that rely heavily on China`s purchasing power could be hit hard. That said, many are still prepared to take the risk.
It`s not a full blown crisis, but as cheap money from the Fed dries up emerging markets could be sneezing for much longer. Isa Soares, CNN, London.
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UNIDENTIFIED FEMALE: See, if you can I.D. me. I`m a word for someone who takes action and risk, I come from an old French term meaning to undertake. Today, I`m associated with someone who starts a business. I`m an entrepreneur, someone who organizes and manages a business.
AZUZ: One such entrepreneur in the African nation of Uganda has a very good problem: there is more demand coming in for what he makes than there is supply of it. We are talking about paper bag, something we all use and probably don`t think much about. But what`s started out as a simple product made on a small scale is opening up some big dreams for its founder.
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UNIDENTIFIED FEMALE: Just 21-years old, Andrew Mupuya is the founder of YELI, the first Ugandan registered company to produce paper bags. His business is housed here in Kosakosa. A slum just outside Kampala`s bustling city center. In this small space, his employees turn out tens of thousands of paper bags. Each week, the work is done by hand. His brand stands for Youth Entrepreneurial Link Investments, a project launched as a teenager in high school after learning about the hazards of plastic bags.
ANDREW MUPUYA, YELI, FOUNDER: (inaudible) ecofriendly (inaudible) easily decompose. The if you (inaudible) they can easily decompose. But plastic bags take too long. So, that`s the difference.
UNIDENTIFIED FEMALE: Uganda and other East African countries have attempted to ban plastic bags to curb environmental damage. They are still used in the country, and often collect in heaps on the side of the road.
But Andrew believes, Ugandans will eventually choose paper over plastic. He even plans to build a recycling operation.
MUPUYA: My plan is to recycle paper, because it is cost-effective and (inaudible) an environment.
UNIDENTIFIED FEMALE: For now, he gets his paper from Kenya.
MUPUYA: We`ve made and then we cut it. Each team members specializes in one step of the process. One of the biggest challenges Andrew`s startup faces right now is supply and demand. He is getting too many orders, and his team cannot keep up. MUPUYA: I`m only able to supply 40 percent of the demands I have.
UNIDENTIFIED FEMALE: It`s a problem, he says, most clients understand, and a push for Andrew to keep thinking big.
MUPUYA: So, I believe it is (inaudible) start.
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UNIDENTIFIED FEMALE: Time for the "Shoutout." What`s the most popular professional sport in the U.S.? If you think you know it, shout it out! Is it: football, baseball, soccer or auto racing? We`ve got three seconds, go!
The recent survey by Harris Poll indicates pro football is (inaudible) America`s favorite sport? That`s your answer and that`s your shoutout.
AZUZ: And by more than a field goal, 35 percent of American adults who follow pro sports said football was number one. In second place, baseball with 14 percentage points followed by college football, autoracing and man`s pro basketball. What`s yours? If you are on Facebook, we`re at Facebook.com/cnnstudentnews. If you`re on Twitter, we are at cnnstudentnews.
Time to take attendance. Here is who is watching in today`s class on the CNN STUDENT NEWS, "Roll Call," we`ve got the Champions, it can`t be them. They are at Caesar Chavez High School in Lavine, Arizona. To Ashland, Kansas, now - where the Bluejays are online, hello to the students of Ashland High School. And we wrap things up with the Wild Cats over in Hilliard, Ohio. Glad to see you at Hilliard Davidson High School.
Today`s last segment is brought to you by Hawaii`s Kilauea volcano. If that sounds like a vacation advertisement, it`s not. You don`t want to lounge along a lake of lava. The Kilauea volcano is one of the most active in the world, it` been continually erupting since 1983. And it`s lava lake is rising inside the crater. Though it`s not expected to boil over anytime soon. It`s got about 165 feet to go before that could happen.
Still, there is a lot to love about that video. It`s great look at some mighty mountain molt and melt. And you could say, it rocks that there is no crater view, and of course, it`s nice to see without commercial interruption. CNN STUDENT NEWS returns tomorrow.
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