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OPEC Plus Agrees to cut Oil Output by 2 Million Barrels a day; Zelenskyy: Army making "Fast & Powerful Advance" in the South; 85-year-old Former UN Official to receive Medical Procedure; Detained American Citizen Leaves Iran; Security Failed to Unlock Gates in Time; U.S. and South Korea Test-Fire Four Missiles. Aired 11a-12p ET
Aired October 05, 2022 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
LYNDA KINKADE, CNN HOST, CONNECT THE WORLD: Hello, and welcome back to "Connect the World". I'm Lynda Kinkade coming to you from Atlanta if my
colleague Becky Anderson, good to have you with us. We'll begin with word that top oil producers have approved a steep cut in output. Just moments
ago, OPEC and its allies, including Russia agreed to cut production by 2 million barrels a day. This is the biggest cuts since the pandemic began.
And it could lead to a spike in oil prices.
Take a look at how the oil markets are responding. Slash comes as gas prices level off or fall in the U.S., which call the prospect of a big cut
a disaster. Well, this could make for a long winter in some parts of the world.
CNN's Anna Stewart is tracking this for us from London joining us now live. Good to have you with us, Anna, so a cut of 2 million barrels a day. This
is certainly the top end of what was expected right?
ANNA STEWART, CNN REPORTER: Yes, I think a week ago; this really would have shocked us. But over the coming days up to this meeting, there has been
expectation that there would be a major output cut between one or 2 million barrels per day. So this is certainly at the top end of that.
And to put it into perspective, this is 2 percent of the oil consumed around the world. So it really is sizable. And interestingly, looking at
the press release from OPEC, they say this is down to the uncertainty that surrounds the global economic and oil market outlooks.
And that's certainly something to consider, of course, as many advanced economies look to be tipping into recession, what would that mean in terms
of oil demand, it could fall.
And OPEC wants to see all prices high enough to of course, make a profit and invest in further production. There are some concerns though about an
output caught even actually from the CEO of Saudi Aramco, speaking in an oil forum.
I was at yesterday in London, worrying about the lack of spare capacity going forward because yes, we may be looking at a recession and oil demand
dropping.
But at the same time, Lynda, you could see for instance, China, leaving COVID-19 restrictions behind them in the coming months, and what would that
do for oil demands. So it's a very interesting move at this time.
And it's also a very political one. We can't forget that in December, the g7 are planning to place a price cap on Russian oil and Russia is a major
player at the table, not part of OPEC, but part of that alliance.
And as part of this announcement, we now know OPEC plus, so Saudi Arabia to - members and Russia will stay in this alliance until the end of next year.
KINKADE: So it's certainly a lot at play here, Anna. Just talk to us more about the why because the White House had tried to dissuade OPEC from
taking this drastic move.
We know that Russia's deputy prime minister, a man who is subject to U.S. sanctions was at that meeting. Talk to us about what played into this
decision.
STEWART: Well, in terms of the reasons why from OPEC, and Russia, the OPEC plus side of things this has to do with oil prices and control having
control of the market.
It's interesting, you point out the White House because there has been a really concerted effort to lobby OPEC and prevent this output cut happening
because as you can imagine, you know, the White House would like to see oil prices lower, particularly a month out from midterm elections, they'd like
to see gasoline prices lower, not higher, and this threatens to raise those prices.
But all those efforts from the White House clearly fell on deaf ears. Interestingly, we've had a reaction from U.S. President Joe Biden, who says
he needs to see what the detail is. But he said I am concerned, it is unnecessary.
That was in response to a question from CNN's Arlette Saenz as she departed the White House for Florida today, so clearly a lot of concern from the
White House in terms of what all of this means. But frankly, this was a matter out of their control. KINKADE: All right, Anna Stewart for us
staying across it from London thanks so much. We are going to stay on this story. And Abhi Rajendran is a man who studies oil markets for a living. He
is Research Director with Energy Intelligence, and joins us now from London as well. Good to have you with us.
ABHI RAJENDRAN, DIRECTOR OF OIL MARKETS RESEARCH, ENERGY INTELLIGENCE: Thanks for having me.
KINKADE: So just take us through your reaction because just looking at the markets, briefly, not a massive jolt, how much of this cart was already
factored in? RAJENDRAN: Yes, I think you know, we've been hearing about the likelihood of cuts for several days now, right. So we've had $5 move in
prices evening leading up to this and so you see kind of a modest reaction today.
Couple of points to know you know, while the headline is a you know, 2 million barrels a day cut that is off of you know, baseline for the actual
cut will actually end up being closer to 1 million barrels a day.
So you know a little bit lower than some of you know kind of the worst case numbers that were being floated out there. Again the actual cut is going to
be closer to 2 million barrels a day.
[11:05:00]
RAJENDRAN: So that factors into it. But certainly, I mean, I think there's, there's questions around the timing of this around whether, you know, this
is, you know, response to Dickens, or - into it.
KINKADE: Yes, and just explain that a little bit further, because I was just reading that. One of the White House Spokespeople, John Kirby was
saying that OPEC has been saying for some time now that they're actually producing three and a half million more barrels than they actually are. So
just explain that a little bit more about what it means in real terms.
RAJENDRAN: Sure, yes. Again, the delta between the headline cuts and the low will actually transpire is, you know, it's going to be a function of
who is hitting their quotas, and who is not right.
So, you know, 2 million barrel paper, again, as you noted, you know, as a group formed by three and a half million barrels a day, but there are
several of the larger countries like Saudi Arabia, UAE, Kuwait, that are, you know, at their baseline level.
So, so, they will, they will be the - the ones that are already underperforming, you know, effectively or are already, you know, cutting,
you know, a decent part of that 2 million, right, so, so half of that two - already in place. And half of that 2 million validate cut will be enacted
for November.
KINKADE: And so in real terms, OPEC, cutting its oil output, what will that mean, for prices at the pump?
RAJENDRAN: Yes, I mean, I think the, you know, again, some of the comments out of the OPEC plus meeting were that, you know, there was a technical
reason for this cut, the OPEC - group was trying to be proactive.
I think the challenge, you know, there's very little evidence of a weak demand of demand falling. And on our numbers on our analysis, you know,
the, the more likely thing that is going to happen to demand over the next couple of months is that it's more likely to go up than down.
And this is assuming a recessionary environment in Europe, sort of a stagflationary environment of the U.S. and, and kind of a weak global
economic environment. So even that being considered, we think demand is still likely to hold up over the near term, if not go up going into the
winter, as you have fuel switching.
You know, the China's reopening is, is a big question, the timing of that all of these are more likely to push demand higher than lower. So, so
taking supply off the market at this point, you know, there doesn't seem to be any fundamental reason for it, at least on our numbers.
KINKADE: And just quickly, despite Russia's invasion of Ukraine, Russia and Saudi Arabia continuing to cooperate closely how did that factor into this?
RAJENDRAN: Yes, I mean, I think the subtext of that is pretty obvious, right? I think, you know, the other things that you have coming over the
next couple of months on the supply side, are, you have the U.S. strategic petroleum reserves that have been a heavy source of supply being withdrawn,
right.
So you're going to lose, you know, somewhere between - 7000 barrels a day of supply that was added to the market every week, taking off of it from
mid-November. And then going into December, you have the EU Russian oil embargo, the price cap plan, that's, that's led by the g7 to kind of smooth
out.
So I think the issue is that, you know, you have I've been taken out of the market already, at least from the SPR release is slowing down. So again, in
a flat to rising demand environment that already created some, some risks.
And then I think there's, you know, there's the element of it, where, you know, Russia is really not happy about the price cut plan. Today, Deputy
Prime Minister Novak said at the end of the OPEC plus meeting, that again, this is something that he said repeatedly over the last couple of months,
that those who try to push through the price cap plan will suffer and there will not be any oil sold to, you know, to those participants.
Of course, mainly this is Europe at this point. So despite, you know, Russia, you know, understanding this risk is interested in, you know,
withholding some supply. Obviously, OPEC plus cuts is our way to do that.
KINKADE: All right.
RAJENDRAN: And the other point is that yes, the other point is that they you know, they would like to have higher prices too, right.
KINKADE: Yes, exactly.
RAJENDRAN: So - supply achieves that as well.
KINKADE: Well, Abhi Rajendran, good to get your perspective. We will continue to follow this closely. Thanks so much. Well, rapid and very
significant gains in southern Ukraine.
That's the assessment coming from Ukraine's president in what he calls an ongoing defensive operation to reclaim territory captured by Russia.
Volodymyr Zelenskyy says Ukraine's army has reclaimed dozens of settlements just this week.
[11:10:00]
KINKADE: These soldiers in Kherson regions stomping a Russian flag, where Ukrainian troops are advancing on the strategically important city of
Kherson which provides the land corridor to Crimea.
And Ukraine's advances coming as Russian President Vladimir Putin signs into law measures to annex four Ukrainian regions deemed illegal under
international law. Well, our Frederik Pleitgen is in the Ukrainian capital of Kyiv, and joins us now. Fred, we've just got an alert into his social
media showing Ukrainian forces crossing into the Luhansk region. This is one of the regions claimed by Russia under their illegal annexation.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, that's actually a really big deal, Lynda. And it's good that we're talking about
it because that really was the main region where Russia said that they control all of that territory, the Luhansk oblast or the Luhansk
administrative district was one where the Russians said that they have complete 100 percent control of that. Now, obviously, the Ukrainians are
saying that is no longer the case, obviously showcasing some of those advances that the Ukrainians have been making.
But of course, in general, one of the interesting things that's been going on is that you had early this morning, Vladimir Putin, essentially signing
off on the annexation of these four areas, with Russia controlling less and less of those four areas. We see it here -
KINKADE: I think we've just lost -
PLEITGEN: --especially a town of Lyman.
KINKADE: We just had a slight break up in that connection, but good to have you with us Frederik Pleitgen, certainly a lot of developments there. We
will check in with you again soon.
Well, the European Union has agreed to a fresh batch of sanctions to punish Russia for its annexation. The measures will include more restrictions in
trade with Russia in steel and tech products.
They also include an oil price cut for Russian seaborne crude deliveries through European insurers. Well, EU countries are investigating the leaks
on the Nord Stream natural gas pipelines running from Russia to Germany.
The pipeline's suffered unexplained explosions last week, Russia is now saying it should be part of that international probe. Sweden has blocked
off the area around the pipelines pending an investigation. Earlier I spoke with Sweden's defense minister asking him about that investigation.
(BEGIN VIDEO CLIP)
PETER HULTQVIST, SWEDISH DEFENSE MINISTER: The suite of security police is they are responsible for it. And they are doing it in the area. And this
will take some time. But it's very important that they can do their job. And they also do the same from the Danish side.
So we have no evidence and we have no results yet.
And they have to come back with the information when they think that it started for that. That is the topic number one. Topic number two is that
from our first analysis is that this is done by somebody that has ambition to do something. And we see that there may be so responsibility for a state
at door behind.
(END VIDEO CLIP)
KINKADE: Well, for more in Russia's invasion of Ukraine you can go to our website, you'll find everything you need to know about the war, including
live reports and how Ukraine is hitting Russia hard and the regions in Moscow is trying to seize, all that and much more on cnn.com/ukraine.
Well still ahead on "Connect the World" risking it all for freedom. We'll have the latest on those protests sweeping Iran, now largely being driven
by young women. Plus a flight to freedom for an American man who spent six years detained in Iran, we'll tell you why - let go.
(COMMERCIAL BREAK)
[11:15:00]
KINKADE: These girls are chanting Death to the Dictator, part of a wave of protests now in their third week. Iran has tried to crush the demonstration
sometimes with deadly results.
In the coming days of sources has told CNN that the U.S. will sanction those directly involved in a crackdown. The European Union is also
considering sanctions. The protests are being driven largely by young people. And what's especially remarkable is the role that young girls and
women are playing. CNN's Jomana Karadsheh is following the developments from Istanbul.
(BEGIN VIDEOTAPE)
JOMANA KARADSHEH, CNN CORRESPONDENT (voice over): This religious propaganda song released by the Iranian government with a tribute to former Quds Force
Commander General Qasem Soleimani, who was killed in a U.S. drone strike, is also a pledge of allegiance to the Supreme Leader and the ideology.
Critics of the regime say its part of an effort to indoctrinate the next generation to carry on the Islamic Revolution. But that generation is now
rising up saying enough to repression, demanding rights they've never known.
In Tehran spontaneous outbursts of defiance young girls on the streets, waving their headscarves chanting Death to the Dictator, and the now
familiar women life freedom slogan of the protests, with cars honking their horns in support.
More and more video is now emerging if teenage girls joining in the protests. In this video, the girls removed their hand scarves and chasten
official out of the school, throwing water bottles and other objects as they chant dishonorable.
Girls emboldened by the young women who've been at the forefront of the nationwide protests, braving the bullets the threat of prison or flogging,
standing up to the Islamic Republic and it's so called morality enforcers risking it all for their freedoms for their right to choose.
No one knows how this will all end. But one thing is for certain, the barrier of fear has now been broken. Jomana Karadsheh, CNN Istanbul.
(END VIDEOTAPE)
KINKADE: Well, the Iranian singer we told you about earlier this week has now been released on bail. Shervin Hajipour's song in support of Iran's
women became an anthem for the demonstrators. Take a listen. Well, Hajipour was arrested as part of the regime's crackdown on protesters. Iranian
authorities say he will be released until his case goes through the legal process.
Well, an 85 year old American Iranian citizen being held in Iran has been allowed to leave the country for medical treatment. Baquer Namazi will
undergo a procedure in Abu Dhabi. That's according to his family.
Namazi had been detained since 2016 when he went to Iran to try to free his son from custody. Another son said "It is impossible to articulate and
describe sufficiently how I'm feeling. I am just so grateful that after so long, I will shortly be able to embrace my father again".
Well, Jared Genser is a Human Rights Attorney who has worked to free political prisoners. He joins us now from Washington. Good to have you with
us.
JARED GENSER, HUMAN RIGHTS ATTORNEY: Thanks for having me.
KINKADE: So over six years in detention in Iran, accused of spying, Baquer Namazi finally you representative of what's the feeling?
GENSER: Well, I think elation and profound relief. The reality is that he's 85 years old and has had a number of serious health problems. And I think
my biggest fear and that of his family is that he would never get out of Iran before he ultimately died. He been out of prison although he'd gotten
a 10 year sentence since 2018 on a medical furlough because even the Iranian government saw he had major health problems.
[11:20:00]
GENSER: But his condition has deteriorated remarkably in the last year or two, and he needs this major surgery to unclog one of the main arteries to
his brain.
KINKADE: Right he's of course a former UNICEF official, but his son remains in prison in Iran is 51 years old. What more can you tell us about his
case?
GENSER: Yes, you see Baquer Namazi has been detained since October of 2015 and has now spent almost seven years in Evin Prison. This past weekend, we
learned for the first time he was going to be given a one week renewable medical furlough, which has now been granted to him and he is now for the
time being out.
But today's deadly also a bittersweet day. Because while one Namazi is finally able to leave Iran and be reunited with his son, we have not seen
for more than six and a half years, the other son remains in Iran, and obviously, a prisoner.
And ultimately, what needs to happen, of course, is that hopefully these goodwill gestures on the part of the government of Iran can be used as an
impetus for the United States and Iran to finally come together and work expeditiously to finally resolve an outstanding set of hostage cases that
could then lead to Namazi's finally being reunited as a family in the United States.
KINKADE: It is interesting to note that Baquer Namazi is the first American freed under the Biden Administration. Ryan, of course, is often used to
prisoners as bargaining chips. Do we know what Iran gained from this release?
GENSER: Well, you know, only Iran can answer that question. I guess, what I would say is that, you know, we've been pressing for Baquer Namazi's exit
for a long time. And it was really the UN Secretary General Antonio Guterres, most especially who had been pushing publicly and privately for
this to happen.
Because as you noted, Baquer had spent 30 years as a UNICEF staffer in heart, you know, heart at heart spots all over the world. And, you know,
the UN really sees him as a member of our extended family.
And so there was an outpouring of support from the UN to push Iran to have his travel ban lifted. It had an illegal travel ban in place for last four
years since he got out of jail.
And so I think, you know, this is a good day, all things considered. But we can't forget, obviously, you know, what's going on with Siamak Namazi and
the need for him ultimately, to be freed along with the other American hostages.
KINKADE: Yes, and there are, as you mentioned, other jewel Iranian Americans detained right now in Iran. What could this deal mean for them
something this must give them hard?
GENSER: I would think so. And, you know, and I think that we've been trying for obviously, years to get Namazis out of jail. And it's been very, very
difficult most especially to get the dual nationals out, because Iran doesn't recognize dual nationality and considers people who are Iranian to
be exclusively Iranian.
You know, again, you know, what I would say is that, you know, I would call the United States to respond to the liberal gesture of the release of
Baquer Namazi and the furlough of Siamak Namazi.
To reinvigorate efforts to come to a final resolution of these cases, the suffering of the families in these circumstances is really beyond
imagination. And I think in the Namazis where you are talking about two loved ones who had been imprisoned, it's far worse than twice as bad.
It's usually 10 or 20 times as bad for the family. And so I just want peace, for the family, for Namazi family, who I've come to know and work
with over so many years. It's just been tragic the way that you know, in his golden years Baquer Namazi, for example, you know, has been cut off
from his, his grandchildren, from his son, out of the country and otherwise, and, and this kind of suffering just simply needs to be brought
to an end of once and for all.
KINKADE: And can you just give us some insight Jared into the negotiations behind the scenes. You said you've been working on this for years and given
Baquer was a UN, a former UNICEF official. I understand the UN also played its part in his campaign to get him released from the country.
GENSER: Yes, I think I would do a step back and have a look at the broader issue of countries that engage in this kind of a practice, because the
reality is the United States has not been especially effective over the years and resolving these kinds of situations.
And in a large part, I think it's because we've dealt with kind of one, you know, one country in one case at a time, and our policies have been
consistently inconsistent in terms of how we negotiate, you know, do we strike deals, do we pay ransoms? Do we talk to terrorists?
You know, and these are questions where, you know, both Democrat and Republican administrations in the United States have struggled to find a
solution. Ultimately, what I think needs to happen is, you know, an approach that would be multilateral.
And where countries around the world come together and say it's you know they're not going to tolerate this practice you know, writ large.
[11:25:00]
GENSER: And you know that there are deterrent policies that are put in place, such that if a country takes, you know a foreigner and put it in
prison, that all the countries that might be a part of this multilateral agreement would come together and work individually and collectively try to
secure that person's release.
You know, I think that the negotiation process has been horrifically difficult for the Namazi's. You know, the Namazis were left behind by
President Obama. Siamak Namazi was the one American that was not released as part of the 2016 hostage deal explicably.
And then subsequent President Trump secured the release of two other Americans from Iran. But Siamak and Baquer Namazi were left behind by
President Trump. And so now we're, of course in the Biden Administration.
And I definitely congratulate the President and Secretary General Gutierrez for, for having been able to finally get boss her out of the country. But
the work is far from done. And we really need to bring this family's nightmare to an end as quickly as possible.
KINKADE: The International Human Rights Lawyer Jared Genser, congratulations to you also, for your work on this case. Thanks very much
for your time.
GENSER: Thanks so much.
KINKADE: Well, still ahead the British Prime Minister warns of what she calls stormy days and she made the speech of her political life to turn her
fortunes around. We'll look at how she did next.
Plus, the U.S. and its allies are teaming up in a sign of force after North Korea's recent missile launches. CNN Correspondent Selina Wang will join us
later with the details.
(COMMERCIAL BREAK)
KINKADE: Welcome back. I'm Lynda Kinkade, good to have you with us. Well, Ukraine's Zaporizhzhia nuclear plant has been under Russian occupation for
months. Well some news just into us.
Vladimir Putin is claiming it officially for Russia. The Russian president today signed a new decree taking the plan into federal ownership. It also
amends the Russian constitution and meeting new regions of Ukraine into the country.
The decree was published on a Government portal. Well, the status quo is not an option. Those are the words of the British Prime Minister Liz Truss.
She's been defending her plans to grow the UK economy during a make or break speech a short time ago.
In fact, it was billed as the speech of her political life. Ms. Truss is telling the Conservative Party's annual conference that "Britain is open
for business".
[11:30:00]
(BEGIN VIDEO CLIP)
LIZ TRUSS, BRITISH PRIME MINISTER: I have three priorities for our economy, growth, growth and growth. The fact is that the abolition of the 45 P tax
rate became a distraction from the major parts of our growth plan. That is why we're no longer proceeding with it. I get it and I have listened.
(END VIDEO CLIP)
KINKADE: Well, that speech was just hours ago, and it was briefly interrupted by protesters, as you can see there from Greenpeace. CNN's
Bianca Nobilo is covering the Tory party conference since it began. She joins us now from Birmingham in England.
Good to have you with us, Bianca. So we've heard various ways this speech has been described lackluster, just one of the many ways certainly, she
became quite animated when those protesters from Greenpeace came in. And the reaction certainly got a standing ovation.
BIANCA NOBILO, CNN CORRESPONDENT: It did. And that can sometimes happen with speakers, especially ones that can be more stilted when something
interrupts their flow. And they have to extemporize and be a bit more spontaneous, that can read well to an audience.
And that is what we saw today. You described it in your introduction as a make or break moment for the Prime Minister. That was accurate. Did it
break her, definitely not? Did it make her?
And that's an informal way of saying, well; it's too soon to tell. The real question is whether or not the prime minister can regain the control over
her party and try and win the support of the public bearing in mind that she's only been Prime Minister for 28 days.
And 10 of those days, there was a political, a political pause because of the Queen's funeral. So in that time, she's managed to get herself into a
very difficult situation with this unpopular economic announcement having to U-turn on that.
Her party being fractured this sense of disarray, building over the conference, and open disagreements between members of cabinet and members
of the party. So the speech was the opportunity for the prime minister to study the ship to try and convince the party that they don't have to give
up that it could be possible they win the next election and turn the economy around. And that moment when the protesters interrupted the speech
became quite pivotal, let's take a listen.
(BEGIN VIDEO CLIP)
TRUSS: Now, later on, in my speech, my friends, I'm going to talk about the anti-growth coalition. But I think, I'd say they arrived in the hole a bit
too early. They were meant to come later on. So we'll get on to that. We'll get on to that. We'll get on to that in a few minutes.
(END VIDEO CLIP)
NOBILO: Now Lynda, that anti-growth coalition remark is becoming one of the prime minister's favorite new refrains along with wanting to expand the
economic pie. And it seems like it might be a more successful one if she can convincingly make the case.
But one of the issues that her detractors and even some of her initial supporters have is where are the details of where this economic policy of
tax cuts will be provided from. So her supporters were buoyed by that speech, some of them were even inspired.
And it put their minds at rest that the prime minister will probably continue to improve in terms of how she communicates. But those who have
deep concerns about the prime minister want the details, and they're going to need a lot more than a half hour speech, to be convinced that she has
what it takes to take the country forward in these difficult times.
And a test will come tomorrow when the prime minister goes to Prague to meet with European leaders in this weakened position, how she navigates
that will be quite instructive, I think to members of her party who are looking for any indication of whether or not the prime minister has the
right stuff, Lynda.
KINKADE: Yes, exactly. Just 28 days as you say in certainly being tested Bianca Nobilo, good to see you. Thanks so much. Well, for months Elon Musk
has been trying to back out of buying Twitter.
But now in a surprising turn around, he's put his original offer of $44 billion back on the table. Well, that sent Twitter stock price surging more
than 20 percent in trading on Tuesday.
You can see where it is now just shy of the price agreed upon in the original deal, but there is a catch. In return Musk wants Twitter to drop a
lawsuit the company filed for his attempt to renege on the deal.
In June Musk claimed he was misled over the number of fake Twitter accounts. Well, still ahead on "Connect the World" a show forced by South
Korea and the U.S. after North Korea launched a missile, how they responded to what the U.S. calls a dangerous and reckless action.
(COMMERCIAL BREAK)
[11:35:00]
KINKADE: Welcome back. Indonesia's President Joko Widodo says he will order a "Total audit of football stadiums across the country to avoid another
tragedy". People are demanding answers after a deadly stadium crash killed more than 130 people on Saturday including children. CNN's Kristie Lu Stout
tells us where the investigation stands so far.
KRISTIE LU STOUT, CNN CORRESPONDENT: The hunt for answers continues in the wake of Indonesia's football stadium tragedy. Indonesian football
authorities say delays and unlocking the gates contributed to the disaster that killed at least 131 people.
Two Indonesian football officials have been banned for life including the security coordinator of the team that hosted Saturday's match. According to
the Chair of the Indonesian FA's disciplinary committee, then there is the security officer.
The person who regulates the entry and exit of the audience the door, he is responsible for several points that must be implemented, but are not
implemented properly. He should not be active in the football environment for life.
The team was also fined around 16,000 U.S. dollars. On Wednesday, the Indonesian President Joko Widodo visited the city where the tragedy
unfolded. Last weekend chaos and violence erupted at an Indonesian league football match in East Java province.
The match between two fierce rivals ended in a crowd surge that became one of the world's worst stadium disasters. The tragedy has triggered outrage
and grief in Indonesia and beyond. On Tuesday, the former Indonesian men's national team coach spoke to CNN.
(BEGIN VIDEO CLIP)
SIMON MCMENEMY, FORMER INDONESIA MEN'S NATIONAL TEAM COACH: People have to be able to go home from football. And then secondly, you know the police's
reaction to it. How can we make stadiums safer? How can the police have protocol which doesn't incite the scenes that we saw the other night?
(END VIDEO CLIP)
STOUT: Indonesian authorities have pledged to investigate the locked gates and the use of tear gas. And our tear gas is a crowd control measure that
is banned by FIFA, the world football governing body.
Andi Haryanto was at the match with his wife and two daughters and this photo was taken at the stadium before the disaster. He tells CNN his two
daughters and his wife was killed. And he has questions especially about the use of tear gas. Haryanto tells CNN, I still don't understand.
Why did the police shoot us in the stadium seats with tear gas? Don't they know that many children and women are watching the match in the stance?
Why? What do we do in the stadium seats? Why did they shoot us?
Indonesia is suspending all football matches until each team submits new security plans all the way to the top to the Indonesian President. Kristie
Lu Stout CNN, Hong Kong.
KINKADE: Well, the U.S. and South Korea have conducted missile and bombing exercises in response to a North Korean ballistic missile test. They
testified for missiles off the east coast of the Korean Peninsula.
A day earlier North Korea fired a ballistic missile over Japan, the first such test in five years. CNN Correspondent Selina Wang joins us now. Good
to see you Selina. So the U.S. and South Korea continue with these tests. These are the second exercises in less than 24 hours.
[11:40:00]
SELINA WANG, CNN CORRESPONDENT: Yes, that's exactly right. What we are seeing here Lynda is a very coordinated effort of show of force between the
U.S. and South Korea conducting two exercises in less than 24 hours, including those bombing and missile tests.
We have however, learned from the South Korean military, they have disclosed that one missile launched early Wednesday actually crash. After
launch, they're still investigating details of the malfunction and what happened, however, no casualties have been reported.
Now the joint exercises with South Korea that also follows on Tuesday, the U.S. conducting exercises with Japan. Now this is a very tense and
frightening moment for the people here in Japan.
Remember, on Tuesday morning people in the North of Japan they woke up to the sirens and alerts from the government to take shelter that missile from
North Korea launched on Tuesday, flying over Japan for the first time in five years.
And also in that telephone call between U.S. President Joe Biden and Japan's Prime Minister Fumio Kishida. Japan's Prime Minister said North
Korea is posing a grave danger to Japan to the region to the world.
We also earlier heard from John Kirby, who spoke to CNN he said the purpose of these joint exercises is to send a message to North Korea to show that
the U.S. and their allies they have the capabilities to deal and respond to North Korea's provocations. Take a listen.
(BEGIN VIDEO CLIP)
JOHN KIRBY, U.S. NATIONAL SECURITY COUNCIL COMMISSIONS, COORDINATOR: We've made it clear to Kim Jong-Un will willing to sit down with no
preconditions. We want to see the duty group denuclearization of the Korean Peninsula; he hasn't shown an inclination to move in that direction.
And quite frankly, he's moving in the opposite direction. We have to make sure that we have the capabilities and the readiness in place to meet our
national security interests, our treaty commitments in the region. And we're going to do that.
(END VIDEO CLIP)
WANG: Analysts largely say that there's really not much however, that the U.S. and its allies can do to stop North Korea from its weapons buildup
because they say the North Koreans are in no mood to talk.
And that in fact, after the failed U.S. North Korea summits during the Trump Administration that the North Korean leader has concluded that
there's really no point in talking, now timing here is also critical.
The Chinese Communist Party Congress is happening in mid-October. And analysts say that North Korea does not want to anger the Chinese and it's
possible that after this party congress, there will be even more significant tests from North Korea, Lynda.
KINKADE: Alright, Selina Wang, we will touch in with you, touch base with you again soon. Thanks so much for that update. Well, in Wednesday's
parting shots to a mission of firsts. Take a look at this, live pictures as SpaceX gets ready to launch four people to the International Space Station.
NASA Astronaut Nicole Mann is the Mission Commander, the first woman in that position for SpaceX. She'll also be the first Native American woman to
travel into space.
Also on board the first Russian to join our SpaceX exhibition as part of a ride sharing deal, NASA and Russia's space agency. Liftoff is expected next
hour from the Kennedy Space Center in Florida. Well, that is it for us today. I'm Lynda Kinkade in Atlanta. I'll be back same time tomorrow. Stick
around; Marketplace Middle East is up next.
(COMMERCIAL BREAK)
[11:45:00]
ELENI GIOKOS, CNN CORRESPONDENT, MARKETPLACE MIDDLE EAST: After years of economic turmoil, a financial bright spots on the horizon for Egypt's
economy, we delve into Kyros versioning startup scene. Coming up Marketplace Middle East is in Cairo, we meet with the Minister of
International Corporation.
Plus Egyptian entrepreneurs embrace green business as the country prepares to host the world's largest climate event cop 27.
Welcome to Marketplace Middle East, I'm Eleni Giokos. And this month, we are in Cairo. It's a bustling city with a population of over 20 million
people in its metropolitan area.
Now Egyptian markets date back centuries, and they've seen numerous economic cycles of highs and lows. Tourists are an important revenue stream
for markets and now it's a sector that's been heavily impacted by the Russian war in Ukraine.
(BEGIN VIDEOTAPE)
GIOKOS (voice over): Egypt relies on Ukraine and Russia for at least a third of the 10 million tourists visiting the country every year. Tourism
as a percentage of GDP plummeted from $32 billion in 2019 to 14.4 billion in 2020, a drop precipitated by the pandemic.
Egypt's economic growth forced the country to take painful measures to devalue its currency and reform its economy. In June this year, it turned
to the World Bank for a $500 million loan.
And now analysts are forecasting a surge in private investments and exports. A large part of that is encouraging a foreign direct investment at
the forefront of that strategy is Rania Mashat, Egypt's Minister of International Cooperation.
I sat down with her to find out what Egypt's plan is going forward.
GIOKOS (on camera): I want to start with where Egypt stands right now, economically. We have seen rising inflation, we're worried about grain,
we're concerned about cost of fuel, but at the same time that you're experiencing the short term pain, you have to maintain focus on the long
term. How do you balance out this dilemma?
DR. RANIA A. AL-MASHAT, MINISTER OF INTERNATIONAL COOPERATION, EGYPT: Since 2014, Egypt invested in silos for wheat storage; we did not have that
before, also invested in increasing agricultural land. And wheat was part of that. So when this crisis happened, there were storage capacity, and
also the risk 50 percent of our local consumption from local production. So this is when a country has a vision, it can weather different shocks, it
can create that resilience.
GIOKOS (on camera): All of these that you mentioned require immense funding, right. And during this time, where you see you know, economic pain
and uncertainty, how do you ensure that there's always fiscal space to fund these types of mega projects, do you inviting FDI you're inviting companies
to come in invest? The energy projects seem to be quite exciting. Do you think Egypt is based in sort of in a very different position to be able to
attract this kind of many?
DR. AL-MASHAT: So a few a few important pointers. When we look at countries trying to move forward on their development agendas, of course, budget
provides key resource, but also private sector investments are important and also international partnerships with multinational development banks
and development partners. So there are different types of financing.
GIOKOS (voice over): When it comes to entrepreneurship and innovation, Mashat says Egypt's future is looking bright. The information and
technology sector is robust, clocking in higher growth and the country's GDP.
Between 2020 and 2021 the sector grew 16 percent with $3 billion in investment. Between 2019 and 2020, the sector rose by 15.2 percent.
DR. AL-MASHAT: So we have a demographic, this is quite impressive 60 percent of the population below the age of 30. Innovation and creativity
exist access to digital spaces there and therefore, what we've seen over the past few years, a very vibrant and developing startup scene.
GIOKOS (voice over): While there are many challenges, there is overall optimism.
CHRIS SCHROEDER, CO-FOUNDER, NEXT BILLION VENTURES: It's not without its challenges, and entrepreneurship is about challenges to begin with in any
event. Emerging markets have distinct challenges about sufficient capital across the spectrum and educating new markets new to technology.
But this is a new era of success I think in Egypt now and also through the Middle East and emerging markets. The Egyptian companies are looking not
just at Egypt but the region and beyond it.
And look I think we have to remember that while there is infrastructure challenges in any emerging market and pretty much anywhere overall in
places like education and health and prop tech and technology elements of financial stuff, at the end of the day, that's where the opportunity lies.
And I think Egyptian entrepreneurs are moving into that quite seriously.
[11:50:00]
GIOKOS (voice over): And leaning into that is the Egyptian government who are remaining laser focused on growth sectors during times of massive
uncertainty.
DR. AL-MASHAT: The global environment is evolving, and it's been very challenging for everyone. But what we've seen most recently is a reduction
in fuel prices and food prices, which is creating some relief.
Something else which is quite important, is we're moving ahead on different structural reforms that will open up also investing opportunities for
sectors. So Egypt I think, over the years has shown a lot of resilience. And that is something that we feel despite hiccups there is a medium to
long term trajectory that we're very confident about.
(END VIDEOTAPE)
GIOKOS: Coming up, we'll take a look at one sector that's on an upward trajectory; how turning to tech could help Egypt's entrepreneurs braved the
economic storm that's coming up next on Marketplace Middle East.
(COMMERCIAL BREAK)
GIOKOS: Welcome back to marketplace Middle East from Cairo. Many young entrepreneurs here are discovering that investing in green business models
are a path to profitability.
(BEGIN VIDEOTAPE)
GIOKOS (voice over): In November, Egypt is set to host the biggest climate change conference in the world, COP 27. And here in Cairo, sustainable
entrepreneurship is the entire buzz. One angel investor tells us why entrepreneurs are currently going green in the hope of big returns, not
just financially, but also altruistically. They call him the Egyptian shark.
KHALID ISMAIL, FOUNDER AND CHAIRMAN, HIMANGEL: I don't know I mean, people think I'm too strict and so on.
GIOKOS (voice over): Because Khalid Ismail knows a thing or two about what makes a good startup. A judge on the Arab version of Shark Tank today, his
VC fund is not only looking for a profitable return, but a green one.
ISMAIL: We are very lucky that most of the startups we invested in have made good impact, because we look for impact as well. So sometimes
financial gain is not the only thing, there is a trade-off. And we accept that.
Of course, we want to make money at the end. But you know if it's not 10x or 50x, but only 2 x and yet it had a good impact on the society and so on.
That keeps us also still happy.
GIOKOS (voice over): After successfully selling his Cairo based software company to Intel in 2011 Khalid could have retired, but instead wanted to
invest in the next generation of young entrepreneurs in Egypt. 60 percent of the population is below the age of 30 according to government
statistics.
ISMAIL: I was not ready to do another seven year, tough journey and so on. But let me give back to people and the youth all the experience I learned
give back, I set aside some of the money that was from the gain of the sale to do that. And initially it was actually not for profit.
GIOKOS (voice over): From waste management to electronic waste to reusable cooking oil, Khalid's company is known for investing in startups that claim
to be environmentally friendly.
ISMAIL: This is one more the tech part quick turnarounds, you know, an app and all of these things. Whereas, you know, a more sustainable endeavor
that takes five, seven years to build and needs cash flow.
And all of that is typically not on the radar screen of many VCs. So we thought it's a blue ocean for us to become known as investors in that area
and through enough that's what happens. So in waste management in particular, we've invested in five startups.
[11:55:00]
GIOKOS (voice over): One of the first was biodiesel MISR. Meet Mahmoud Rokab. His aha moment came at a petrol station in the UK when he saw
biodiesel fuel on offer. The same can't be said in Egypt. Now he's dedicated his career to changing that. And Mahmoud says the answer can be
found in everyone's kitchen.
MAHMOUD EL ROKAB, CEO, BIODIESEL MISR: We are a biofuel producer out of used cooking oil and all the waste oils. Biodiesel is completely
alternative to petroleum diesel that runs the commercial engine and all liquids.
GIOKOS (voice over): While used cooking oil is readily available in Egypt, it is costly to convert into biodiesel. Biodiesel costs are currently 70 to
130 percent higher than petrol and diesel.
In Egypt, diesel is subsidized by the government. So for now, his market is Europe where EU mandates dictate the use of biofuels.
ROKAB: The European market is huge. It's $14.2 billion market size.
GIOKOS (voice over): Mahmoud says Egypt's proximity to Europe makes his business logistically viable.
ROKAB: We are in the middle of the world. So it's good opportunity.
GIOKOS (voice over): He believes his company which produces 90 metric tons of biodiesel per day could help Egypt become a market leader in the space.
ROKAB: But I'm not hoping that my company only to be the largest or the first producer, we are the largest in MENA region. We know this by now. But
I hope that Egypt is the country that I belong to, will be the largest producer of biofuels in the world. It's not the company, it's the country.
GIOKOS (voice over): Khalid Ismail agrees and believes turning a profit doesn't necessarily have to be bad for the planet.
ISMAIL: As we all know that you know, less co2 or whatever is better for the world. But you know there is a price for that. So you go to a factory
and say produce less co2, they say this is going to cost me $2 million a year. I'm not going to do it.
But if you can turn that environmental need into financial gain. Then you don't need to convince them that it's you're doing this for the
environment, you're doing it still as any enterprise for financial gain. But while you're doing that, by the way, you are reducing the carbon
emission, you are doing well for the environment, you're doing well for your society and so on.
(END VIDEOTAPE)
GIOKOS: Well, that's it for this edition of Marketplace Middle East. If you'd like to see some of the stories that we featured on this program, you
can check out our website. From me Eleni Giokos here in Cairo, Egypt, I'll see you next time.
[12:00:00]
END
