Return to Transcripts main page

Connect the World

China To U.S.: Change "Distorted" Views Or Face Conflict; French Protest Plan To Raise Retirement Age; Turkish Presidential Election; Two Of Four Abducted Americans Are Dead; Afghan Women Protest Outside Kabul University; Yemen Receives First Cargo Ship In Years. Aired 10-10:40a ET

Aired March 07, 2023 - 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)

BECKY ANDERSON, CNN HOST (voice-over): I'm Becky Anderson, live for you in Abu Dhabi. This is CONNECT THE WORLD.

Coming up this hour, China issues a stark warning to the United States. Defense Secretary Lloyd Austin makes a surprise visit to Iraq. Protesters

vow to paralyze France, over pension reforms. And Turkiye has a new presidential candidate.

(MUSIC PLAYING)

ANDERSON: We start with a new warning directed squarely at the United States from China's new foreign minister. Qin Gang says that conflict and

confrontation would result if the U.S. does not change what he calls its seriously distorted views of China.

His comments, coming at a news conference on the sidelines of China's National People's Congress, which is a major annual event. Marc Stewart

tracking developments from us from Tokyo. Kevin Liptak is in Washington with perspective.

Starting with you, Marc, this was a stark warning from the new foreign minister. He is not normally as hawkish as this.

What was said that might cause alarm for the U.S. and indeed the West?

MARC STEWART, CNN INTERNATIONAL CORRESPONDENT: Let's look at the back story here, first of all, Becky. Qin Gang, when he was a diplomat, was

known as careful and accomplished.

Now that he is in Beijing, now that he is the head of the foreign ministry, he is certainly embracing that strong, pointed, stern language that we are

so used to hearing from Beijing, especially now at the beginning of a new chapter in Chinese history.

But indeed he did make some very strong comments, a warning, if you will, to the United States. Let's take a listen to his remarks.

(BEGIN VIDEO CLIP)

QIN GANG, CHINESE FOREIGN MINISTER (through translator): If the United States does not hit the brake but continue to speed down the wrong path, no

amount of guardrails can prevent derailing. And there will surely be conflict and confrontation.

(END VIDEO CLIP)

STEWART: So I think a lot of people are asking, does this mean that tension between the U.S. and China is escalating to an even more tenuous

position?

That is hard to say. But it is clear that this new regime in Beijing, if you will, as Xi Jinping begins what is likely a third term, really does try

to send this message of strength and standing up to the U.S.

In fact Xi Jinping just recently made some remarks directed toward the U.S. which is a bit unusual. He will usually just say toward the West. But he

made some statements where he said the U.S. and Western allies have pretty much gotten in the way of China's development. He was speaking to some

Chinese entrepreneurs.

So that is where we are basically with China. It is trying to show some might with new figureheads and, again, a new approach to the world stage,

Becky.

ANDERSON: This is fascinating, isn't it?

Marc Stewart, thank you.

Kevin, let me bring you in.

What does this mean for the U.S.?

For example, in Ukraine, in its continued supply of military equipment to Taiwan; that certainly is being discussed today, off the back of these

statements.

What are the implications here?

KEVIN LIPTAK, CNN WHITE HOUSE CORRESPONDENT: And I think what U.S. officials will be looking for are actions, not necessarily the words from

the foreign minister. But that is not to discount the worrying remarks that he had in his speech yesterday.

Of course, the U.S. has been warning for several weeks now that China could be considering providing lethal aid to Russia. And that is not something

that you heard the foreign minister back off in his speech yesterday.

In fact, he raised this question of, if the U.S. can provide defensive weapons to Taiwan, then why couldn't China, potentially, provide weapons to

Russia?

That is not necessarily a confirmation per se of what China may be considering. But it did really put into context this larger global

political situation in which the U.S. is watching what is happening in Taiwan very carefully. And also, watching what Beijing's intentions could

be with Russia.

[10:05:00]

LIPTAK: The real fear in Washington, of course, is that, if China were to provide Russia with lethal aid, that it could prolong the conflict in

Ukraine and potentially distract the United States from this other potential conflict that is brewing in Taiwan.

Now listen to a little bit more of what the foreign minister had to say about this issue of Ukraine and Taiwan.

(BEGIN VIDEO CLIP)

QIN (through translator): No cold war should be allowed to be repeated in Asia. The Ukraine crisis should not be repeated in Asia.

(END VIDEO CLIP)

LIPTAK: Now we should note that this foreign minister, he is a known entity here in Washington. He was previously the Chinese ambassador to the

United States. So as officials in the White House and the Pentagon and the State Department absorb these comments from yesterday, they do sort of

understand where this man is coming from.

He had a front row seat to this deterioration in U.S.-China ties that has occurred over the last several years. And now, we should note that the U.S.

has vowed punishment on Beijing if they did end up providing lethal aid to Russia.

But there is an open question of what that would be. The sanctions options are tapped out at this point. The tariffs remain in place. There are

already restrictions on what the U.S. is sending to China.

And so as the U.S. watches this play out, it is still a source of very serious concern. And there is nothing necessarily in those remarks from

yesterday that would alleviate any of those concerns going forward.

ANDERSON: Kevin Liptak, fascinating, the perspective out of Washington, here on CNN.

What started out as a fairly routine trip to the Middle East got a lot more interesting on Tuesday, when the U.S. Secretary of Defense, Lloyd Austin,

made an unannounced stop in Baghdad.

Austin is the highest ranking member of the Biden administration to visit Iraq. It came as the German foreign minister also visited the country.

CNN's Oren Liebermann is at the Pentagon with more.

A surprise visit from Austin and indeed from the Germans, by the way.

What is the goal here?

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: For Defense Secretary Lloyd Austin, this trip to Baghdad, the meeting with Iraqi prime minister

Mohammed Shia Al Sudani, serves two important purposes.

First, it's the continuation and the strengthening of Operation Inherent Resolve, the ongoing campaign to defeat ISIS. And second, is the U.S.'

efforts at containing Iran. Let's deal with those separately.

First, after the U.S. transition to purely advise and assist Iraq a couple of years ago, they've been working with Iraqi security forces, which have

led essentially the operations in Iraq against ISIS. That's an important point and one that the U.S. was looking to shore up.

There was an open question of how much Al Sudani would support that or would try to work to move U.S. forces out. Much essentially to the pleasant

surprise of Washington, Al Sudani is looking to expand that relationship.

That very much clear in statements, both from Austin and Al Sudani. So that's important not only the Operation Inherent Resolve in Iraq but also

in Syria as well. And there's a fundamental difference there.

In Syria, the U.S. works and partners forces; in Iraq, the U.S. supports Iraqi operations. So it's important for Austin to make sure that continues.

Also there was the question of how best to contain Iran's influence. Iran looking to use its proxy forces, its proxy militias in Iraq to expand its

own influence there.

And again there was a open question of how Al Sudani would deal with these and which way he would shift, especially after Muqtada al-Sadr, the

clerical position sort of against both Iran and the U.S.

Again, in this case, much to the pleasantly surprised, much to the benefit of Washington, it is Al Sudani who has indicated that he is willing to have

and willing to work with the United States, bringing Baghdad and Washington closer.

So from those perspectives, it's an important visit for Austin during this trip to the Middle East. After leaving Baghdad, he went to Irbil, where he

is now, meeting with Kurdish leadership there.

Again, an important relationship there that Austin is managing, again as you pointed out, the highest level member of the Biden administration to

visit.

ANDERSON: Good to have you, Oren Liebermann, thank you very much indeed. More on that trip as we get it, of course.

Well, people across France are walking off the job and onto the streets in what could be one of the biggest protests against this pension bill so far.

These people in Calais took to the streets and danced. They're pushing back against the government's plan to raise the retirement age by two years to

64. The strikes are also affecting schools, public transport, flights and fuel deliveries. CNN's Jim Bittermann is in the heart of it all, in Paris.

This is the sixth day of protest.

[10:10:00]

ANDERSON: While we look at the video of people enjoying themselves to a certain extent in Calais, are we seeing any end to this in sight?

Or is this, as it seems, an escalation?

JIM BITTERMANN, CNN SR. INTL. CORRESPONDENT: I think we're going to have to wait until the end of today to see how the numbers come in from the

government and from the various unions. And what people are going to be looking at is how many people were actually on strike.

They always have these very colorful demonstrations, with a big turnout. But a lot of people turning out here in Paris. Hundreds of thousands of

people in other parts of the country.

Marseille, the union leader said there was something like 0.25 million people turning out. But it indicates, we'll see what the numbers say. But

then we'll also be watching for something else.

The unions have been calling for, what they call an ongoing strike here, which is to say, these strikes are usually one-day affairs. But they

(INAUDIBLE) asking for -- unions are asking for members to go out for a continuous day on strike.

And this is kind of crunch time for the unions, because, the fact is that they have got about eight days between now and when the legislature will

take up the enabling (ph) legislation. That is going to prevent the government to raise the retirement age.

So they have got about eight days here to convince (INAUDIBLE) that, in fact, their cause is the right one as opposed to what the government

thinks. The government's not had any willingness to proceed here at this point.

So we'll see what happens. But I think they're going to be watching the numbers tonight very carefully. And maybe, whether or not this strike will

go on for one day after another -- Becky.

ANDERSON: Yes, Jim Bittermann, on the streets. It's noisy, folks. Thank you Jim.

We will move to Turkiye now, where the opposition is pinning its hopes on one man to take on Recep Tayyip Erdogan in the presidential elections,

Kemal Kilicdaroglu is the leader of the center left Republican People's Party.

He has been nominated by an alliance of six opposition parties to run in Turkiye's elections in May. Nada Bashir is in Istanbul.

It is important to understand who this candidate is and whether or not at this stage it is clear whether he will pose a challenge to the incumbent

President Erdogan.

NADA BASHIR, CNN CORRESPONDENT: Well, Becky, Turkiye's opposition supporters were certainly hoping that he will have enough support to pose a

significant challenge to Erdogan. He is the leader and has been since 2010 of Turkiye's oldest and largest secular party, the Republican People's

Party.

But he is standing on a platform that is far greater than that. He has the backing now of six opposition parties, that alliance hoping to pose a

challenge to Erdogan and it's brought together parties across the political spectrum.

We're talking about right-wing parties, Islamist parties, secular parties, center-left. It is a broad church (ph) appeal here for the opposition. They

say they are campaigning on a commitment that brings all these parties together.

He says that he wants to govern on the basis of consensus and also on consultation, which, for a country that is already seeing a government

nearing what essentially are authoritarian tendencies in its actions, this could be the change that many people wish to see.

Now he announced yesterday a 12-point plan. And chief among that program are plans to return Turkiye to a parliamentarian system, which could be a

huge shift for Turkish politics.

And also, he has been leading in vocal criticism that has been launched against President Erdogan since the earthquake struck Turkiye on February

6th. He has been quite clear, that many say the government did not respond swiftly enough.

But he has already accused the government of overseeing a system of corruption which has allowed buildings to go ahead, construction to go

ahead without following safety standards meant to be in place.

This topic will be high on the minds of voters, this time around, the election expected to take place in May. But of course, there is the

question of the economy. This is a former civil servant. He has held high- level roles within Turkiye's finance ministry and has the backing of Erdogan's former finance minister.

For a country that is seeing inflation at around 55 percent and facing a deepening economic crisis, with people up and down the country struggling

to pay for everyday items, food and day-to-day goods, this will be an issue chief among voters' minds.

So having someone who has that experience may well be very appealing. The question of whether there is enough appeal here to allow for the opposition

to pose a serious challenge to Erdogan is still to be seen.

President Erdogan has long played into the idea that the opposition is not unified, it's not strong enough to come together around a single leader and

it's disorganized.

[10:15:00]

BASHIR: We have seen some discord over the weekend. We saw the second largest party within that alliance, the E Party, pulling out initially and

not wanting to back Kemal Kilicdaroglu as the nominated candidate.

But they have since returned. This is still a six party alliance. They say they will continue to back Kilicdaroglu on the understanding that the

mayors of Istanbul and Ankara will need to be appointed to the position of joint vice presidents.

So we have seen work by the opposition parties to put their differences aside and to come together, with the hope that they will pose a challenge

to President Erdogan in the upcoming elections -- Becky.

ANDERSON: That is one unified bloc. Thank you.

We have a lot more on Turkiye's elections inside our "Meanwhile in the Middle East" newsletter. Right now, there is a fascinating article on that

and how the devastating earthquake is likely to play a big role in all of this election talk, cnn.com/mideastnewsletter.

And while you are there sign up. It can be delivered right to your inbox three times a week. It's a really good read. And if you care about this

region, you should get that in your inbox.

Next up, devastation and defiance: the latest on the battle for Bakhmut, where the ground offensive -- from that ground offensive to the war of

words.

And we've got some breaking developments on that story of the kidnapped Americans from Mexico. That is coming up after this.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

ANDERSON: We're learning more about the fate of four Americans who were kidnapped in Mexico. They were shot at and kidnapped in Matamoros on

Friday. The state government there says two of them are now dead and the other two are alive.

Let's get to Stefano Pozzebon, who is covering the story for us.

What do we know about these Americans that were kidnapped?

And what are the latest details?

STEFANO POZZEBON, CNN CORRESPONDENT: The latest, Becky, is one of the most tragic updates and news that we fear there was coming in the last few

hours, just about half an hour ago the president of Mexico played a phone call in a press conference out of Mexico City.

The phone call was with the governor of the state of Tamaulipas, where Matamoros is located in northeastern Mexico, just south of the U.S. border,

saying that the four Americans had been located. Two of them have died and one is injured and other is unharmed.

According to the governor, about who they are, we know that they traveled over the weekend from South Carolina. They are all from a group of four

people. They were all traveling to Mexico from the area of Myrtle Beach on the South Carolina Atlantic coast.

[10:20:00]

POZZEBON: And they were coming to Mexico to get a medical treatment, in particular cosmetic surgery, which is not uncommon. The U.S. southern

border is heavily trafficked by trade goods and also by tourists and medical tourists, who go to Mexico to take advantage of cheaper medical

fares, compared to the cost of receiving a medical treatment in the U.S.

We understand that, according to one source, these four African Americans have been mistaken for Haitian smugglers and they were entering an area

where the cartels and the drug cartels of Mexico rule the law.

I think, Becky, this is an occasion to put an eye onto the deteriorating security situation in Mexico after over 50 years of gruesome war on drugs

and the territorial struggle with some of these cartels.

But to recount, the news of the hour is that four U.S. citizens have been located, Becky, and two of them are dead, unfortunately. Back to you.

ANDERSON: Stefano Pozzebon, reporting for you.

Ukraine's military says there have been dozens of Russian attacks in the eastern city of Bakhmut over the past day. This new video is a glimpse of

some of the intense damage that the city has suffered.

(BEGIN VIDEO CLIP)

ANDERSON (voice-over): The general staff in Ukraine says there were over 140 attacks from Russia in a 24hr period. This as NATO estimates that

Russia has lost five times more soldiers in Bakhmut than in Ukraine.

But Russia is defiant, saying victory there will lead to further advances.

(BEGIN VIDEO CLIP)

SERGEI SHOIGU, RUSSIAN DEFENSE MINISTER (through translator): At the same time, the support of the key regime by NATO countries is not leading to the

success of Ukrainian troops on the battlefield.

On the contrary there is a significant increase in losses among the personnel of the armed forces of Ukraine. Only in February, the increase by

more than 40 percent compared to January amounts to over 11,000 service men.

(END VIDEO CLIP)

ANDERSON: The fierce fighting there has complicated evacuation efforts with few civilians making it out of the war zone each day. CNN's Alex

Marquardt takes a look at one successful mission.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT (voice- over): Racing into the war zone, a white-knuckle drive toward the middle of

Bakhmut. This is the last successful emergency evacuation mission by the Bakhmut police.

"We need to go faster," an officer says. "The Russians can clearly see us."

This team, called the White Angels, grabs civilians who have been trapped, throwing belongings in the back. There's a cat; someone else with a guitar.

The fighting raging nearby. The residents told to hurry up and get in and sit anywhere they can. As they hold on tight the rescue mission speeds away

from the smoldering city. Ahead there's smoke from a Russian strike.

Getting dropped off safely, Leonyd (ph) tells the officer that everything is blown up in Bakhmut, even inside his apartment.

They've survived months of brutally intense assaults. Russia has made gains trying to encircle Bakhmut and surrounding it on three sides as Ukraine

desperately tries to fend them off.

Today we met Bakhmut's deputy mayor in a city nearby at a makeshift aid center for Bakhmut evacuees.

MARQUARDT (voice-over): He tells us it's very hard to persuade the more than 4,000 civilians left there to leave. They say they have nowhere to go

and have no money. "It's very hard to survive there," he says.

"It's not life; it's survival. Drinking water is a big problem. Walking to the well is dangerous," he says. "Shells landing on your head all the

time."

All he now feels, he tells us, is fear and sadness.

Everyone here knows how hard it will be for Ukraine to hold onto Bakhmut. Svetiana's elderly mother with disabilities didn't want to leave but

Svetiana managed to convince her.

MARQUARDT (voice-over): "I don't know if my house is still standing," she tells us. "It's very painful thinking about those still in Bakhmut." He

eyes well up. "I just want them all to survive," she says. "That's my only wish" -- Alex Marquardt, CNN, in Eastern Ukraine.

(END VIDEOTAPE)

ANDERSON: Let's get you up to speed on some of the other stories on our radar right now.

(MUSIC PLAYING)

ANDERSON (voice-over): Afghan women have been protesting a ban on female education. This video shows women students gathered outside Kabul

University, as their male counterparts return to classes.

[10:25:00]

ANDERSON (voice-over): CNN cannot independently verify when this was filmed. The U.N. says that the Taliban's restriction may amount to a crime

against humanity.

Iran says that it has arrested a number of people over a wave of mysterious poisonings in schools. It is not clear how many were arrested or what role

they may have played in the poisonings. As well as many as 5,000 students, mostly girls, have fallen ill.

In India, firefighters are trying to control toxic fumes from spreading further after a fire broke out of a waste plant on Thursday near the city

of Kochi. Authorities say that several firefighters fainted or needed medical attention as smoke and methane gas blanketed the area. Residents

are being advised to stay inside.

The United Nations' secretary general has tweeted he is heartbroken after a fire ripped through a Rohingya refugee camp in Bangladesh. Some 12,000

people are now homeless, many of them, already struggling to survive after fleeing their homes in Myanmar. CNN's Christina Macfarlane reports.

(BEGIN VIDEOTAPE)

CHRISTINA MACFARLANE, CNN CORRESPONDENT (voice-over): A massive fire ripped through a refugee camp in Bangladesh as residents flee escaping if

lucky with any belongings. Local firefighters and volunteers use what little they have to try and put it out. One mother says she couldn't save

anything.

KULSUMA KHATUN, ROHINGYA WOMAN (through translator): Chickens, houses and clothes have been burned. I couldn't take anything out of the house. I just

took shelter to save my children.

MACFARLANE: Another man said he was saved by crossing barbed wire fences. After two hours, the fire is brought under control. Through the smoke, a

man wipes his tears.

This is Cox's Bazar, home to around a million Rohingya Muslims, most of whom fled neighboring Myanmar during the brutal military crackdown, which

the United Nations has called genocide, a claim which Myanmar denies.

It's one of the world's largest refugee camps where people live in overcrowded and squalid conditions. Now some 12,000 people are left

homeless and crucial facilities like health centers and water facilities have been destroyed.

Many were already struggling to survive after the U.N. slashed food aid from $12 to $10 per person this month due to a massive funding gap.

UNIDENTIFIED MALE (through translator): Earlier our rations were not enough; now they have been reduced further.

MACFARLANE: To make matters worse, the area is exceptionally vulnerable to climate change.

REGINA DE LA PORTILLA, COMMUNICATIONS OFFICER, UNHCR BANGLADESH: They're living in an area that is very prone to natural disasters exacerbated by

the climate crisis. So what we are seeing is a very dry season with way hot weather that can lead to fires.

MACFARLANE: It was just two years ago that at least 15 refugees died and more than 10,000 families were displaced in another fire at the camp.

Aid agencies say they're working to provide food and temporary shelter to those who lost their homes. As authorities evaluate the damage and continue

to investigate the cause of the fire. The fire yet another blow to community already so devastated -- Christina MacFarlane, CNN.

(END VIDEOTAPE)

ANDERSON: Just ahead on CONNECT THE WORLD with me, Becky Anderson. The Fed chief in the hot seat on Capitol Hill. What Jerome Powell may signal about

future rate hikes. Stay with us.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[10:30:00]

(MUSIC PLAYING)

ANDERSON: Welcome back. I'm Becky Anderson. You are watching CONNECT THE WORLD from Abu Dhabi, here are the headlines this hour.

China's foreign minister warns the U.S. will face conflict and confrontation if it does not change its perception of the country. The

foreign minister spoke on the sidelines of the National People's Congress. He also said that Beijing does not provide weapons to either side of the

Ukraine war and called for dialogue to end.

The Mexican state governor where four Americans were kidnapped on Friday now says that two of them are dead. The other two, alive. Family members

told CNN that the four Americans kidnapped by armed men in Matamoros in Mexico were a tightly knit group of friends traveling from South Carolina

for one of them to get a medical procedure.

Hundreds of thousands of workers are striking across France, bringing the country to a standstill. They are protesting the government's plan to have

people work two years longer before they get their pension.

And in one section of Paris, things got heated between the demonstrators and the police.

Years of war have left Yemen's economy in tatters. In fact, with millions in dire need, the United Nations says that Yemen is the world's worst

humanitarian crisis. A U.N. brokered truce expired months ago. But CNN's Laila Harrak tells us there is one encouraging sign.

(BEGIN VIDEOTAPE)

LAILA HARRAK, CNN ANCHOR AND CORRESPONDENT (voice-over): A commercial cargo ship docks in Yemen's Hodeidah port, the first time in several years

a vessel carrying more than just humanitarian essentials has been allowed to unload there.

It's the sign that fragile piece brokered by the U.N. last year between Houthi rebels and the Yemeni Government is still largely holding, though

neither side renewed the agreement when it expired in October.

The Yemeni government says the move is meant to build trust and strengthen negotiations between the two sides who have been fighting a civil war since

late 2014.

Hodeidah and much of the northwest, including the capital, Sanaa, is controlled by the Houthis, who are backed by Iran. But the government

controls most of the rest of the country and is supported by Saudi-led forces who enforce a naval blockade off Yemen's waters.

Under a U.N. vetting program to ensure weapons don't enter the port; only ships containing food, fuel and cooking oil have previously been allowed.

The hope is the additional goods flowing into Yemen will help to ease the humanitarian and economic crisis gripping the country. The U.N. says two

thirds of the population needs help and protection and is appealing for nearly $4.5 billion of aid, despite some of the recent gains made.

ANTONIO GUTERRES, U.N. SECRETARY GENERAL: Civilian flights resumed from Sanaa. Vital supplies arrive through the port of Hudaydah. But the economy

is in enormous difficulties, basic services risk collapse and humanitarian needs continue to soar while excess is constrained and funding perennially

falls short.

HARRAK: It is a shortfall on so many levels. Food and fuel prices have surged, inflation is high. They're dual currency notes and exchange rates,

all of which make it harder for Yemenis to buy anything at an affordable price.

These Yemenis cut trees to earn a little money.

ABDULSALAM DABWAN, YEMENI BAKER: Citizens are forced to cut down trees in order to provide a living for their children. Trees are cut down and sold

to bakeries.

HARRAK: UNICEF estimates that more than 2 million children have dropped out of school. An increase of nearly half a million since the war began.

Some for safety reasons.

[10:35:00]

HARRAK (voice-over): Others because they are needed to help make ends meet, like this boy, interviewed after school began last year.

MIDIAN ADNANA AOUDI, FORMER STUDENT (through translator): I feel sad because I dropped out of school. My friends go to school and I don't. I had

to drop out to help my parents and support my family.

HARRAK: A desperate future for a country at a crossroad. A lasting peace could be the only hope for Yemen civilians weary of fighting their own

battles just to survive -- Laila Harrak, CNN.

(END VIDEOTAPE)

ANDERSON: U.S. Fed chief Jerome Powell testifying this hour before a Senate committee on Capitol Hill. In prepared testimony, he says that

interest rates will rise more than most people realize.

That is partly because the American jobs market is still running hot, creating a tricky situation that the Fed policymakers see. Markets are all

ears, when it comes to Powell, especially on Wall Street.

One of the biggest names on Wall Street is voicing his top, economic concerns. JPMorgan Chase CEO Jamie Dimon telling Bloomberg he worries most

about the war in Ukraine and the U.S. relationship with China.

For details on that and his view on inflation, head to cnn.com. Or find it on your app.

Let's bring up the markets, because what we know from Jerome Powell is the following. In testimony this hour on Capitol Hill, he has said that the

peak rate for rates will be higher than anticipated; that revisions to growth show inflation higher than expected; minimum deflation in services,

decisions to be made by the meeting, the next FOMC meeting, and inflation will be bumpy.

Let's look at these markets. It is interesting, they have actually clawed back some. I was looking at these as we were in the advertising break and

as Jerome Powell was delivering those remarks.

And actually, the markets were down more than half a percent. My sense is that this break, we'll get some announcements on this after the break. My

sense is that the markets had factored in what Jerome Powell had to say.

And that is because they take a look at these inflation numbers. And while they are better, i.e. inflation, tighter, lower than it was this time last

year, it is clearly not under control as far as the Fed is concerned.

And therefore, they are looking to keep rates higher and at a higher peak than had originally been anticipated.

Higher inflation, higher rates and these markets do not like it. Not one bit. I would say, this is somewhat factored in. Markets expected this.

Next up, a chance for Chelsea to fend off the Blues. Why the pressure is on for Chelsea and the Champions League. That is coming up.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[10:40:00]

(MUSIC PLAYING)

ANDERSON: Let's return to our breaking news on the four Americans who were kidnapped in Mexico. A state government in northeast Mexico now says the

two of them are dead, the other two are alive. They were reportedly shot at and kidnapped after arriving across the border in Matamoros on Friday.

Back with Stefano Pozzebon, who's on the story.

We know that sadly two of these Americans are dead, two have survived and the video that we are watching, Stefano, just talk us through.

It is of the point at which these Americans were abducted, as I understand?

POZZEBON: Yes, exactly, and that perhaps, Becky, lets you understand, just like the reality of the U.S. on the border, of the U.S. and Mexico border,

right now, where even yesterday, the State Department's Ned Price made a call and urged U.S. citizens not to travel to Tamaulipas, to this area in

northeastern Mexico.

Because it is a level 4 critical, avoid traveling on the U.S. Department of State's travel list. This is an area that is heavily controlled by drug

cartels. And tragically it really seems that these four U.S. citizens, that traveled all the way from South Carolina from the Atlantic Coast, to

receive medical treatment in Mexico.

They were just in the wrong place at the wrong time. Now the local governor has said that two of them have been found dead and one is critically

injured.

But again, this shows the dystopian reality of that part of Mexico, where hundreds of thousands of people in Mexico, cross the border every day for

work reasons, for tourism; in this case, to receive medical treatment.

And countless amount of goods are traded every day through the border. But the border is also the territory heavily controlled by rivaling drug

cartels, who are waging wars against each other as well as the Mexican state.

And this is an example of how dangerous the deterioration of Mexican security over the last few years has been and why this is an area of great

concern right now for U.S. authorities, Mexican authorities, all over North America -- Becky.

ANDERSON: Stefano, just to underscore what you have just said, one U.S. official, familiar with the situation, telling CNN that one of the two who

have survived this abduction has been critically injured.

So at this point and for the benefit of those who may be just joining us, for Americans abducted on Friday in northeastern Mexico. Two we understand

now are dead, two are alive, one critically injured.

Where are they?

pause Yes, they are, according to the local governor, both the security forces and ambulances have rushed to the scene where they have been

located. They did not specify the exact location where these Americans are located.

It is in the Matamoros area of northeastern Mexico. So not far from where they were abducted before the weekend. And we understand that Mexican

authorities and the FBI are working closely to bring to justice whoever has been responsible.

But once again, one source from U.S. enforcement tell CNN that these people were probably being hit by a Mexican action by mistake because they were

mistaken for other people that had incurred in the wrath of the Mexican cartels -- Becky.

ANDERSON: The details still to be nailed down. Thank you.

Stay tuned for more, coming up after this.

END