Return to Transcripts main page
Connect the World
Second Day of Russia's Revenge Missile Strikes; NATO Chief Says Putin Is Failing in Ukraine; Russia's Central Asian Allies Remain Neutral on Ukraine; Iranian Oil and Gas Workers Hold Anti-Government Protest; Lebanese Maritime Breakthrough; JPMorgan Chase CEO Jamie Dimon Warns of U.S. Recession; Bank of England Warns of "Material Risk" to Financial Stability; North Korea Breaks Silence on Flurry of Missile Tests. Aired 10- 11a ET
Aired October 11, 2022 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:00:00]
(MUSIC PLAYING)
(BEGIN VIDEO CLIP)
DMYTRO KULEBA, UKRAINIAN FOREIGN MINISTER: Everything literally happens in the -- in the front of eyes of my family in Kyiv and some people who I know
in Kyiv.
BECKY ANDERSON, CNN HOST (voice-over): Fresh missile attacks from Russia. Vengeance sent from Vladimir Putin's ...
(END VIDEO CLIP)
ANDERSON (voice-over): In Iran, the rage against the regime shows no signs of slowing down.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
ANDERSON (voice-over): And the worst is yet to come. The IMF issues a bleak outlook for the global economy just as the Bank of England steps in
...
(END VIDEO CLIP)
(MUSIC PLAYING)
ANDERSON: I'm Becky Anderson, welcome to CONNECT THE WORLD. It's 6:00 here in Abu Dhabi.
Air raids sounding for a second day across Ukraine where missile strikes in retaliation on a bridge connecting Crimea and Russia. This video, a
snapshot of what Ukrainians are enduring over the past two days. A Russian embassy spokesperson in Paris calling Monday's attacks a, quote,
"logistical consequence of the bridge blast."
And Russia, again, hitting civilian targets with deadly results. At least one person was killed today in the Ukrainian controlled city of
Zaporizhzhya after 19 deaths in Ukraine on Monday and some 100 injuries.
We are learning about one of those victims. Oksana Leontieva was a doctor at a children's cancer hospital in Kyiv, working with the bone marrow
transplant unit. She had just dropped off her 5-year-old son at school when a missile hit her car and burned it to the ground.
The human face to the horrors of this war. The head of NATO says that the attacks on civilian targets shows that Putin is running out of alternatives
in Ukraine. In the meantime, NATO stepping up protection of infrastructure in the Baltic and North Seas following the apparent sabotage of the Nord
Stream pipeline.
CNN's Salma Abdelaziz is following all of this from London.
So we're describing what is going on on the ground; fresh missile attacks from Russia causing destruction on civilian infrastructure and the loss,
again, of civilians in what is this senseless war.
What is the Ukrainian president asking for from the G7 and NATO at this point?
And how did Jens Stoltenberg respond to his request?
SALMA ABDELAZIZ, CNN CORRESPONDENT: Well, first and foremost, what President Zelenskyy is going to be asking for, Becky, is air defense
systems. Air defense systems. You had dozens of missiles, rockets, drones, lobbed at Ukraine by the Kremlin yesterday.
About half of those, just over half, rather, were taken out by Ukraine's air defense systems. But President Zelenskyy is making the argument to all
of his allies, look, I can save more lives. We can stop these missiles from landing in places like a kindergarten or rather a playground in Kyiv
yesterday.
That is what you heard just a few moments ago, about an hour ago, from the NATO secretary general, that promise to stand with Ukraine, the promise of
further air defense systems without any further details. But also a very clear assessment that President Putin is on the back foot. Take a listen.
(BEGIN VIDEO CLIP)
JENS STOLTENBERG, NATO SECRETARY GENERAL: President Putin is failing in Ukraine. His attempted annexations, partial mobilization and reckless
nuclear rhetoric represents the most significant escalation since the start of the war. And they show that this war is not going as planned.
(END VIDEO CLIP)
ABDELAZIZ: So as you can see there, Becky, there's two parts to this, right?
"President Putin is failing in Ukraine." That is what the secretary general says. That's what British intelligence says. That's what Western allies
say. That's what we actually see happening on the ground.
Russian soldiers on the back foot, losing thousands of square miles of territory that had been gained since the start of the conflict to a
counteroffensive.
[10:05:00]
ABDELAZIZ: By a very -- lightning rod counteroffensive by Ukrainian troops. But that is when analysts say you should be the most concerned
about President Putin, is when he's cornered, when he's running out of options.
So when you look at what happened across Ukraine yesterday in this morning, this indiscriminate attack, widespread across the country, that is the
concern from Kyiv, is that any absence of a clear battlefield victory, President Putin is going to punish civilians. He is going to punish
families.
He's going to try to hit at the morale of the ordinary Ukrainians, who have already suffered for so long.
That is exactly what these meetings at the G7 and NATO are about today, to try and deter that potential, to try to deter the possibility of President
Putin expanding the war and hitting at civilian targets, hitting indiscriminately while he is still losing on the battlefield -- Becky.
ANDERSON: Salma Abdelaziz following the events from London for you today. Thank you.
A former Russian minister describes Vladimir Putin's latest actions as those of a miserable terrorist. Here's more of what Andrei Kozyrev had to
say on CNN a bit earlier.
(BEGIN VIDEO CLIP)
ANDREI KOZYREV, FORMER RUSSIAN FOREIGN MINISTER: Now every man in Russia is threatened and feels that the war is somewhere around the corner and
that it is deadly, potentially deadly.
So he is desperate and he turns to what he's doing, intimidation that is threatened with nuclear weapons, which he will not use, or/and terror
actions in Ukraine and in Russia. And most prominent voices of the opposition in Russia are jailed now or threatened also with long terms. So
terror is the only thing left for him, like for any miserable terrorist in the world.
(END VIDEO CLIP)
ANDERSON: Well, Ukraine's foreign minister says that these latest Russian attacks are hitting close to home, literally. Dmytro Kuleba spoke to
Christiana Amanpour about the growing threats to civilians, including his own family. Have a listen.
(BEGIN VIDEO CLIP)
KULEBA: Everything literally happens in the front of -- in the front of eyes of my family in Kyiv and some people whom I know in Kyiv. My kids were
literally 800 meters away from the bridge when the Russian missile hit it in the downtown Kyiv.
I know a woman who was killed by a Russian missile at a crossroad, leaving child -- her child an orphan because her husband had been killed six months
ago.
So, these are the stories. This is what happened. Deaths of civilians, threat to civilians, and massive, massive destruction of energy
infrastructure across the country. To make the life of civilians as difficult as it can be.
(END VIDEO CLIP)
ANDERSON: The reality there from the foreign minister's perspective. Nick Paton Walsh connecting us at this hour from Eastern Ukraine.
The images that we are seeing in the aftermath of these attacks are truly disturbing. They're terrifying.
What's been the fallout, Nick?
NICK PATON WALSH, CNN INTERNATIONAL SECURITY EDITOR: I think the ultimate conclusion you can take from the past 24 to 48 hours is that Russia has had
its display of what it might consider to be military might, it's launched now -- I think we're north of at least 100 cruise missiles in the past 48
hours.
And a lot of attack drones as well. But at the same time, the consequence has been that Ukraine has to remind the world that civilians are
relentlessly targeted by Russia. This is not something new. What is new is that we are seeing it happen in the capital of Kyiv, in cities that have
had tried to edge back to normal.
I'd like to remind people that the city of Zaporizhzhya, sort of in the center and east of Ukraine, that had been on the receiving end of missile
attacks, relentless missile attacks against apartment blocks, often, for the past week before the onslaught of Monday.
So it's given Ukraine the opportunity to show the world what they've been dealing with since the start of this war. Hitting civilians is not
something new for Russia.
Sometimes it appears to be targeted; other times, you simply can't tell if they thought they were going to hit something else and missed or actually
hit the wrong target through faulty intelligence.
It has, of course, very simply, the White House agree, it seems, very quickly, to something that Ukraine has been asking for for weeks which is
advanced air defense systems.
We don't know how fast they'll arrive, we don't know the technicalities of what they will get but given today, it appears that Ukraine has managed to
intercept a team of the missiles fired at them since between about 9:00 this morning and 1:00 this afternoon.
[10:10:00]
WALSH: They're already on their old Soviet systems that they were complaining about yesterday doing quite well, it would seem, or better
today. None of that reduces the awful toll upon civilians, the toll upon the energy infrastructure here as well.
But I would say this display of Russian, quote, "military might" that we've seen since Monday and this morning as well, what hasn't changed: the
fortune on the battlefield. And it certainly hasn't changed, it doesn't seem, the calculations in the minds of those running Kyiv's military
campaign or ordinary civilians.
ANDERSON: As we consider the prospect of a horrific new turn in what is a vicious war, the British spy chief today, Nick, suggested that Russian
commanders on the ground know their supplies and munitions are running. Out Russian forces are exhausted and he says that Russia or Vladimir Putin, is
running out of friends.
Is there briefly, evidence, to that degree?
WALSH: Yes, look, I mean, I think that none of what has happened since yesterday has changed the basic facts that Russia is losing the war. It's a
simple fact. We've seen them retreating on multiple fronts as a partisan opinion.
And they're struggling to supply basic things, necessities on the front line, which calls into question how many cruise missiles they actually have
the ability to fire at civilian targets.
And so, yes, I think those around Vladimir Putin, might likely see that things are not going as well as they could do. And we did hear from
Vladimir Putin less bombast yesterday, saying that future responses from Russia would correspond to the threat that Russia faces.
He did not use the word "nuclear," he did not hint at it, he did of course accuse the West of nuclear threats against Russia. So it does appear that
things are changing. The last 48 hours, though, have brought a sign of Russia's callousness, that I think Ukrainians hoped was only reserved for
front line cities -- Becky.
ANDERSON: Nick Paton Walsh is on the ground. Thank, you Nick.
Well, by pounding civilian sites, Russia may have committed war crimes. That according to the U.N. High Commissioner for Human Rights. Those
missile strikes hitting home for Kyiv's ambassador.
At an emergency U.N. meeting on Ukraine, he said that his immediate family was caught in the attacks. We heard strong words from the British
ambassador. Have a listen.
(BEGIN VIDEO CLIP)
DAME BARBARA WOODWARD, PERMANENT REPRESENTATIVE OF THE U.K. TO THE U.N.: Putin is trying to take Ukraine's land, its resources, its identity. In so
doing, he is overturning the most sacred principle in the international system: that borders cannot be redrawn by force.
(END VIDEO CLIP)
ANDERSON: Russia's envoy, in the meantime, accused U.N. members of ganging up on his country.
One friend that Russia might have relied on is the United Arab Emirates. UAE president Sheikh Mohammed bin Zayed Al Nahyan has been meeting with the
Russian leader in St. Petersburg today, the UAE one of the few nations that maintain relations with both Russia and the United States.
Mr. Putin saying that they would talk about fighting around the Zaporizhzhya nuclear power plant in Ukraine. He's also meeting today with
the head of the International Atomic Energy Agency.
Well, traditionally, Russia's almost always been able to count on its neighbors, former Soviet republics for support. But the war in Ukraine has
changed things. CNN's Ivan Watson has more from Kazakhstan.
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): On his 70th birthday, Russian President Vladimir Putin met with the leaders of
other former Soviet republics. And he called for the resolution of conflicts that erupt in the region.
Of course, Putin is directly responsible for launching the biggest war in recent history in this part of the world.
WATSON: Russia's invasion of Ukraine was aimed at reasserting Moscow's control over part of the former Soviet Union. Instead, this increasingly
disastrous war has weakened Russia's influence across the region, including here, in Central Asia.
KADYR TOKTOGULOV, FORMER KYRGYZSTAN AMBASSADOR TO U.S.: Unless something changes dramatically and Russia rebounds, we'll see Russia's role,
certainly, diminishing in Central Asia, for sure.
WATSON (voice-over): Kadyr Toktogulov is a former ambassador to Washington from Kyrgyzstan, a small former Soviet republic with close economic and
security ties to Moscow.
TOKTOGULOV: To see this kind of attack by Russia against Ukraine was certainly disorienting, because it sort of showed the things -- terrible
things that Russia is capable of.
WATSON (voice-over): Of the leaders of the former Soviet republics, only Aleksandr Lukashenko of Belarus has publicly supported Russia's war in
Ukraine.
[10:15:00]
WATSON (voice-over): Russia conducted joint military exercises with its other four mutual defense treaty allies. But when it comes to the Ukraine
war, they have all stayed publicly neutral. And that includes Kazakhstan.
In January, the authorities here used deadly force to crush a violent uprising that left dozens dead.
Moscow answered an urgent call for help from the Kazakh government, leading a deployment of troops here on a brief peacekeeping mission.
WATSON: You can still see burn marks on some buildings after the violence last January. Russia came to the Kazakh government's help in its time of
need. But the Kazakh president has made it clear he will not be getting involved in Moscow's war in Ukraine.
WATSON (voice-over): As Russia's military faces more and more setbacks in Ukraine, tensions have exploded in other areas, long seen as Russia's
backyard.
Deadly fighting raged across the border between Kyrgyzstan and Tajikistan in September. Meanwhile, hundreds died in separate cross-border clashes
last month between Azerbaijan and Armenia.
Moscow refused to call for military assistance from its treaty ally, Armenia. And now the Armenian government is working with the European Union
to negotiate a settlement.
Moscow is on the back foot, due to its destructive war of choice. And that's leaving a growing power vacuum across the former Soviet Union --
Ivan Watson, CNN, Almaty.
(END VIDEOTAPE)
ANDERSON: Jake Tapper will sit down with U.S. President Joe Biden for an exclusive interview to talk about the war in Ukraine and the upcoming
midterm elections. We are exactly one month out from those. That interview Tuesday, 9 pm Eastern time, Wednesday 5 am, right here in Abu Dhabi and
right here on CNN.
Well, the drumbeat of rage beats on in Iran. We will look at the current state of the unprecedented protests in Iran and what measures the country
is taking to silence those voices.
And Israel says that a maritime deal will inject billions into its economy. But as recently as last week, that historic deal looked like a pipe dream.
Why and how it's come about is coming up.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
(BEGIN VIDEO CLIP)
ANDERSON (voice-over): Slowing in Iran, oil and gas workers in the Bushehr province shout anti government slogans before work on Monday. That is
according to this video posted on social media.
Demonstrations like these have been frequent across the country since the death of Mahsa Amini, the Kurdish woman who died in custody of the morality
police.
(END VIDEO CLIP)
ANDERSON: Nada Bashir joining us now from London.
[10:20:00]
ANDERSON: We've seen historically precedent setting protesting at the two pillars of the Iranian economy.
Are there any signs that these countrywide demonstrations are slowing down or abating?
NADA BASHIR, CNN CORRESPONDENT: Certainly, not Becky. These protests are playing out as you saw on that video. We've now seen at least one protest
taking place at a petrochemical complex in the southwestern city of Assaluyeh on Iran's southwestern coast.
And we heard there in those videos, protesters, oil and gas workers chanting anti regime slogans, like "death to the dictator," an important
signal of the mood in Iran. Perhaps this could prove to be more challenging to the regime if it were to escalate.
If we are perhaps to see in the coming days more organized strike action. We only have to look at Iran's history to see the 1979 revolution, where
(INAUDIBLE) managed to maintain some of her a grip on power even in the face of mass demonstrations.
But it was the oil workers strikes that played a pivotal role in fracturing and paralyzing the state. And this could certainly pose a significant
threat to the Iranian regime.
But that's not to diminish the impact really of the demonstrators and protesters that we've seen up and down the country, many defiantly taking a
stand against the regime, even in the face of the brutal crackdown that we've seen at the hands of Iran's security forces.
Excessive and lethal force according to human rights organizations, particularly as we've seen over the weekend in Iran northwestern Kurdish
region in the city of Sanandaj. We've seen a significant crackdown there.
Amnesty International raised the alarm bell, warning that security forces have been using live fire ammunition against protesters -- Becky.
ANDERSON: Thank you.
Well, much of what is coming out of the Iranian region is doing so via social media and in our Middle East news letter, we're looking at the
battle of narratives being fought online, including a disinformation campaign. You can read that report on cnn.com.
Elsewhere in this region, we are tracking a historic agreement between Israel and Lebanon. These two countries have accepted a deal to settle a
years-long border dispute over major oil and gas fields in the Mediterranean.
The deal paving the way for potentially lucrative gas exploration for each country. Now do keep in mind that Israel and Lebanon are still technically
at war, with both sides trading threats as recently as last week. Hadas Gold following developments.
Hadas, walk us through how this deal came together and its significance. If you will.
HADAS GOLD, CNN INTERNATIONAL CORRESPONDENT: Well, Becky, this area has been under dispute for many years. There have been many attempts at
negotiation to bring some sort of agreement.
But it's only been in the last few months that we've seen a lot of movement toward. That there's been a lot of work by the U.S. mediating team, led by
Amos Hochstein but I think a big motivation behind this is actually Russia's war in Ukraine because of the pressure that places on European gas
supplies.
And so they're looking for other sources of gas and this Mediterranean Sea that could be full of rich oil and gas deposits could be an answer to all
of it. I think that that's been a big motivating factor for all, of it
We want to pull up math so we can give you an idea of what we're actually talking about here and on this map you'll be able to see all of the
different sort of claimed lines by both Lebanon and Israel on where they think the maritime border should be.
And you could see all the way up to number one, that is where the original Israeli line was, down to number 29, was the Lebanese claim as of 2020.
Those two, fields the Karish field and the Qana field are the two gas and oil fields.
And what this agreement will now say -- this is according to officials that I've spoken to -- is essentially that line 23 line will be with some
modifications will be the maritime border between Lebanon and Israel.
Lebanon will have all of the access to the Qana field and Israel will have all the according to the Karish field, ready to go online in a matter of.
Days
For Lebanon, of course, they face a dire economic situation. This could mean an infusion of money down the line. And Israel says the Karish field
is ready to go online. They could start exporting gas to Europe very quickly.
And we're actually hearing very warm words about this from both Israeli leaders and Lebanese leaders. Take a listen.
(BEGIN VIDEO CLIP)
BENNY GANTZ, ISRAELI DEFENSE MINISTER (through translator): I commend the announcement by the Lebanese president accepting the agreement. The State
of Israel is interested in having a stable and prosperous Lebanese neighbor. The agreement and discussion is just and positive for both sides.
ELIAS BOU SAAB, LEBANESE NEGOTIATOR (through translator): (INAUDIBLE) in its final shape is now with the president.
[10:25:00]
SAAB (through translator): Lebanon has obtained its full rights and all of its remarks have been taken into account, despite rumors that Lebanon did
not receive any of its demands. Lebanon has obtained all of them because they are rightful demands. And I know that the other side will also
consider that the demands and mark is asked for were met.
(END VIDEO CLIP)
GOLD: Becky, pretty amazing to hear these types of statements from Lebanese and Israeli leaders. As you, noted, the countries are still
technically at war, they consider each other enemies.
We also should note Hezbollah's role in all of. This Hezbollah had threatened Israel's gas fields if it went online before the negotiations
were settled. Israel actually shut down three drones that they said were shot by Hezbollah over the Karish field. So far they said that they will
adhere to the agreements.
And Israel thinks that this would be very important in keeping the northern border quiet and calm.
Now not everything is completely finished, because this agreement still has to be ratified, especially internally for Israel. Still a question about
whether the full parliament will need to vote on it or not.
But still, a historic day, it's really incredible to see these two enemies that are still technically at war coming to an agreement over the maritime
border -- Becky.
ANDERSON: Well, the window is closing, wasn't it?
With just three weeks away from an Israeli election. Thank you, Hadas.
You just heard briefly there from Elias Bou Saab, Lebanon's lead negotiator on this. I'll speak to him next hour on how this historic deal came
together from his perspective. Do stay with us for that just ahead.
This hour a grim announcement from the IMF. Investors may be getting into the brace position. We will get you team coverage on that coming up.
And ahead, North Korea's explanation for launching several missiles.
But first, let's get some other stories also making news. You're watching CONNECT THE WORLD. Stay with us.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
ANDERSON: Well, I'm Becky Anderson out of Abu Dhabi for you, just half past six.
The markets transfixed, it seems, by's high profile warnings and a grueling first up, the International Monetary Fund lowering its forecast for global
economic growth. For the second time in three months and a warning, in its words, the worst is yet to come.
Well, investors also poring over stark comments from the head of JPMorgan Chase. Jamie Dimon warning that the U.S. is likely to enter a recession
next year.
[10:30:00]
ANDERSON: He tells CNBC that Europe is already there.
Well, right now, the U.K. hearing from its finance minister, Kwasi Kwarteng, facing questions in Parliament for the first time since last
month's so-called mini budget crashed the pound.
Kwarteng was asked whether he'd increase benefits in line with inflation. Have a listen to this.
(BEGIN VIDEO CLIP)
KWASI KWARTENG, U.K. CHANCELLOR OF THE EXCHEQUER: I'm delighted to see that one member of the anti growth coalition is focusing on growth. But in
relation to his specific question, he will understand that the medium term fiscal plan is coming on the 31st of October. And I'm not going to prejudge
any measures in it.
(END VIDEO CLIP)
ANDERSON: Well, at the same, time the Bank of England's warning of what it's calling material risk to the U.K. financial stability and it's taking
action for a second data row, launching new measures to ease pressure on pension funds caught up in the turmoil from that fiscal event as it was
called, a couple of weeks ago.
CNN's Rahel Solomon standing by New York, Clare Sebastian is live for us from London.
Let's start with the kind of bigger picture here, this warning from the IMF.
What are the tailwinds that the global economy is facing at this point?
How concerned is the IMF?
RAHEL SOLOMON, CNN CORRESPONDENT: Well, Becky. The headwinds are certainly quite a few, the ones that we talk about a lot, the war in Ukraine of,
course inflation and central bankers trying to quell inflation.
And then, of course, China's lockdowns and that impact to supply chains. But the outlook is darkening. It is worsening, Becky. The IMF saying that
it actually expects that one third of the world to be in a recession next year and then many people around the world will feel like it is a
recession, slashing its outlook for 2023.
Slightly compared to a few months ago to 2.7 percent. But of, course compare that to 2021, the IMF chief economist saying, that the U.S., the
E.U. and China, will continue to stall. But that the worst is yet to come.
And again, for many, 2023 will feel like a recession, Becky. As you pointed, out these comments in this report that was just released coming
just about 24 hours after the high-profile warning from Jamie Dimon, the chief executive and face of the largest U.S. bank.
So all of these warnings, the IMF, I don't know if you could put it any more bleakly or anymore drastically that the worst is yet to come but also
saying that stormy waters are ahead. So at a time when we were expecting perhaps a bit of good luck, a bit more sort of optimism, it feels like we
can't really rely on that at this point, Becky.
ANDERSON: When the Bank of England talks about material risk to the U.K. financial stability, what are they talking?
About and how concerned is the central bank about what is going on in the U.K. at present?
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, Becky. So this is the continued long and painful hangover from the mini budget that you heard the
chancellor just there saying that he was not going to prejudge anything in his medium term fiscal budget that he is now called forward to Halloween,
October 31st.
So until that point, it's really down to the Bank of England to try to stabilize things. What they're talking about is -- and I think I can pull
up a chart -- their efforts with their announcement of a 65 billion pound bond buying scheme right after the mini budget to try and stabilize things
has not fully come to the markets.
We're now seeing guilt deals, in the U.K. government debt deals rising again, a sign of the markets' sentiments around the risk around them. That
is creating turbulence for pension funds.
And some pension funds are even calling for the Bank of England to go further than they've gone. A trade group saying that today for the pension
industry they want the Bank of England to extend the bond-buying scheme. That was supposed to end on Friday this week.
To the point at which we hear from the chancellor on October 31st, to try and calm things down. There is a major worry, still, Becky, that these tax
cuts that the government announced are inflationary and pushing out real interest rates.
And we really do not know if or how they're going to pay for them. The Institute of Fiscal Studies, a very influential, think tank today said that
the government would need to find 60 billion pounds worth of spending cuts over the next five years to stabilize the national debt.
That would mean, potentially, austerity, as well as tax cuts in a time when we're in a cost of living crisis.
ANDERSON: Well, these central bankers, to both of you, are in a real bind, aren't?
Just bring up what we have been looking at in the U.K., market the stock market, there and the pound. Nothing is looking strong. It has to be said
at present, the central banks are in a real bind.
Raise rates too quickly, you crash the economy and you cause what is known as a hard landing.
[10:35:00]
ANDERSON: Not quickly enough and inflation takes off and the rest is history. Jamie Dimon, Rahel, has been talking today about a recession for
the U.S. He says that Europe may already be there.
Can we take anything positive out of what is apparent bad news at present?
SOLOMON: It's a great question. You know, the economy is still in a good place right now. At least here in the U.S. So I guess that there is that
silver lining. And consumers are still holding up.
So I think we will learn a lot more about whether or not we see silver linings. Later this week, Becky, we will hear from JPMorgan, we will hear
from the large banks in terms of how Americans are doing.
And as you know Becky, the U.S. consumer is two thirds of the U.S. GDP. So it's very important what the U.S. consumer and Americans are doing. Last
quarter I went back to look at my notes and what the banks were saying.
And they all, without a doubt, without exception, Becky, said that U.S. consumers were in strong shape. They were still spending on discretionary
items like retail and restaurants.
The question later this week is are they still?
And that, I think, if they, are I think perhaps that's the silver lining.
ANDERSON: Yes. Fascinating. I've run out of time. To both of you, it is always a pleasure. Thank you.
Let's get you up to speed on some of the other stories that are on our radar right now.
In South Korea, it says that it sees Pyongyang's missile launch from a reservoir as a last resort to avoid surveillance from the South and from
the U.S.
Earlier North Korea says that its missile tests and military drills were practice for tactical nuclear strikes at targets in South Korea.
Venezuela's president, Nicolas Maduro, has got a firsthand look at the aftermath of landslides southwest of Caracas. At least 36 were killed and
more than 50 remain missing. These landslides destroying more than 300 homes. They were set off by rains from hurricane Julia.
Well, that same storm system has left a path of death and destruction across Central America. We have just learned Julia's death toll there has
jumped to 27. Most of the victims in Guatemala and El Salvador.
We'll take a very short break. Back after this.
(MUSIC PLAYING)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
ANDERSON: South Korea's president says North Korea has nothing to gain from its nuclear weapons program. That warning comes after Pyongyang
claimed recent launches and other military drills were practice for quote, "tactical nuclear strikes on South Korea." CNN's Will Ripley has the
details.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): North Korea's missile testing blitz, a staggering seven tests since September
25th.
[10:40:00]
RIPLEY (voice-over): CNN's tally, 25 launch events this year, an unprecedented barrage and ballistic and cruise missiles.
Last week, North Korea's most powerful missile test since 2017, triggering a rare national emergency alert. Tensions skyrocketing to five year highs.
No mention of mass missile testing on North Korean state media until now, breaking six months of silence Monday, calling the testing binge practice
for tactical nuclear strikes on South Korea.
ANDREI LANKOV, PROFESSOR, KOOKMIN UNIVERSITY: North Koreans' final goal is sort of clear. The ASA (ph) wants to have full scale tactical and strategic
nuclear weapons.
RIPLEY: A growing arsenal experts say could be used as leverage to lift crippling sanctions. State media quoting leader Kim Jong-un, nuclear combat
forces are fully ready to hit and wipe out South Korean targets including airports and potentially U.S. military bases, threatening tens of thousands
of American lives.
LEE SANG-YONG, STUDENT (through translator): I'm concerned that these continuous threats might take away our happy and safe life.
RIPLEY: Experts predict the most provocative test in half a decade may be imminent, the U.S. and allies monitoring a flurry of activity at North
Korea's known nuclear test site. I traveled there in 2018 for a staged demolition, North Korea made the questionable claim all nuclear tunnels
were destroyed.
The secretive site now apparently restored, ready for a seventh underground nuclear test, potentially pushing a rattled region and weary world back to
the brink of nuclear crisis -- Will Ripley, CNN, Taipei, Taiwan.
(END VIDEOTAPE)
ANDERSON: Now to a story that is out of this world. New research shows that our galactic home, the Milky Way, has a graveyard of dead stars that
stretches three times the height of the galaxy.
Get your head around this. The Milky Way galaxy formed about 13 billion years ago and it's been known to billions of stars, many of which have
collapsed into dense remnants over time. Now astronomers have discovered this while creating a first digital map of the so-called galactic
underworld. Amazing.
(SPORTS)
[11:00:00]
END
