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Isa Soares Tonight
Global Stocks Plunge On U.S. Recession Fears; Hundreds Arrested in Far-Right Riots Across The U.K.; Countries Across The Middle East Brace Themselves As Iran Says It Must Punish Israel In Retaliation For The Killing Of Hamas Leader Ismail Haniyeh; U.S. Stock Sink At Open After Global Sell-Off; Bangladesh PM Resigns After Protests; Head Of U.S. Central Command Is In Israel; Israel On High Alert; Biden Meets With National Security Team; Olympic Athletes Withdraw From Triathlon After Getting Sick. Aired 2-3p ET
Aired August 05, 2024 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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ISA SOARES, HOST, ISA SOARES TONIGHT: A very warm welcome to the show, everyone, I'm Isa Soares. Tonight, global markets plunge Japanese stocks,
suffering their biggest-ever day loss, while U.S. stocks look to claw back losses after an earlier drop, we'll find out whether the fears of a U.S.
recession are justified.
Then hundreds of arrests as violent protests rock the U.K. Far-right misinformation sparking clashes with police. We'll be live in Rotherham
with the latest. And countries across the Middle East brace themselves as Iran says, it must punish Israel in retaliation for the killing of Hamas
leader Ismail Haniyeh. That and much more ahead this hour.
But first, this evening, we start with stock markets and particularly U.S. stock markets are down sharply for the day after what has been, I think
it's fair to say a pretty tumultuous morning on Wall Street. There have eased somewhat still down, red arrows right across the board.
I mean, the Dow opened out more than about 1,000 points low, while you can see that had disease, we're now almost 2.5 percent. Both the tech -- the
tech heavy Nasdaq and the S&P were also in a nose-dive. So, up from the steep loss we've had earlier, but still very much deep in the red.
If we have a look at where it all started in the day, and that started in Asia, particularly in Japan, stocks suffering their biggest daily, biggest
daily point loss in fact. Twelve, but just over 12 percent lower, the Nikkei, 225 index, closing that sharply lower, tumbling comes as global
markets fear the U.S. could enter a recession started in Asia.
And when all around the world, including Europe, then to the United States, tracking this story from all angles, of course, is Clare Duffy in New York.
First, I want to go to Richard Quest, and Richard, you and I were supposed to talk about this on Friday, of course, and then we had some breaking
news. But it goes back to Friday, doesn't it, Richard? Because it was one data point. Just explain what's going on?
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: So, the data point to which you refer was a number from the jobs that showed only about 115,000 jobs
created in the U.S. during the last month. And that was lower-than- expected, not dramatically, but it did show, Isa, that the U.S. economy is slowing down.
It showed that 11 interest rate hikes over the last two years has finally taken its toll. The economy is slowing down, the lagging indicator of
unemployment is now starting to show more unemployment 4.1 percent to 4.3 percent, fewer jobs being created. And in many ways, this is exactly what
you would expect if you raise interest rates to kill inflation, which is what they've done very successfully, eventually it will hit the job market.
And so, the test now, has the Fed got there too late? Can they cut rates to keep growth and to avoid a recession, the so-called soft landing, or are
you going to bump right down into recession because they've left it too little, too late.
SOARES: So, when it comes to the rate hike, Richard, in September, I mean, it's not a question of if, right? It's a question of how much at this
point?
QUEST: Yes, can I just -- I think you marginally misspoke. I think you meant rate-cut --
SOARES: Rate-cut, apology --
QUEST: Yes --
SOARES: Yes --
QUEST: Right, yes, according -- yes, I mean, absolutely. The Fed chair has already indicated it, the numbers suggested it would be perverse not to cut
rates now in September. The issue will be a half -- quarter or a half percent, and then you've got the rest of the two more meetings to the rest
of the other, better betting is three cuts between now and December.
SOARES: There were calls before I go to Clare Duffy, Richard, there --
QUEST: Yes --
SOARES: Were calls at least, today, for emergency --
QUEST: Yes --
SOARES: Right, rate cut here. I mean, does that warrant it? You --
QUEST: No --
SOARES: I mean, from what --
QUEST: No --
SOARES: We've seen today, if this drags on, does it warrant it?
QUEST: That was in the detail there, Isa. You added -- you cheekily added that --
SOARES: It drags on, yes, if I did --
QUEST: If this -- if this drags on, you will end up with what's known as a self-fulfilling prophecy. And it goes like this. Wealth, people feel less
wealthy because of market. They stopped spending, stop spending, economy slows down, more job losses, stop spending.
[14:05:00]
Therefore, that's this -- that's the downward spiral. Everywhere to get that, then, yes, you would justify an emergency meeting. At the moment, an
emergency cut in rates would signal panic, and that's the very last thing the Fed wants to do.
SOARES: And Clare, let me go to you because tech stocks, as we showed our viewers, they have taken quite a thumping, haven't they today? Just explain
the reasoning behind that.
CLARE DUFFY, CNN BUSINESS WRITER: Yes, Isa, I mean, look, these high flying tech stocks had been fueling markets for the past few months. And
specifically, the excitement and the hype around official intelligence. Tech giants have been promising that Artificial Intelligence is going to
fuel the next industrial revolution.
And that has justified the tens of billions of dollars they've been spending on A.I. infrastructure in the past few months. So, heading into
tech earnings season, which was the past two weeks, investors had really high expectations. They were hoping they would start to see some revenue
gains from that A.I. spending, but that's not what happened on the whole.
We saw really mixed results, in some cases, lower margins, in some cases, weak expectations for the current quarter. And it was kind of a record-
scratch moment for investors who said, wait a minute, when is anybody going to start earning money from these A.I. investments? And the answer really
is that it's going to take longer than many people thought.
For example, Microsoft CFO said they're expecting to start to see monetization from their A.I. technology over the next 15 years and beyond.
Meta said similar things during its earnings -- during its earnings call. And that time horizon really is uncomfortable for investors.
One analyst, Gill Laureate(ph) told me that, that 10 to 15-year time horizon for returns is more like a venture investment than a public company
investments. So, I won't be surprised if we start to see some of these tech names pull back a bit on that A.I. spending, especially amid this broader
economic uncertainty. Isa.
SOARES: Yes, a reality check and really how much that might hurt. Another question, their core business. And Richard, let me just go back to you,
because --
QUEST: Yes --
SOARES: I think for viewers right around the world, they will no doubt will want to know, is this just a blip? I imagine volumes are also down
because it's Summer, right? Is this --
QUEST: Yes, volumes --
SOARES: Or is there a sign -- apologies. Is there a sign from those you've been speaking to, Richard, that there are concerns over the state of the
U.S. economy here? What other data --
QUEST: Yes --
SOARES: Have you looked at?
QUEST: No, there are no concerns about the fundamental strength of the U.S. economy. Is there the possibility of a Fed-driven-slowdown leading to
a recession? Yes. Around 30 percent to 35 percent is what the market is pricing in. But does that mean there are major fissures in the economy,
that such like we had in 2008, the rot is in the roots? No, absolutely not.
And to Clare's very interesting points about this long term return on investment, the market is like children on a sugar rush. And when you
finally take the sugar away or you tell them that they can't have candy for every meal, like your children, Isa, they will eventually throw a strop and
they will throw their toys out the ground. And that's what we're seeing. Now, strip away that froth, and that strop --
SOARES: Yes --
QUEST: And get down to the fundamentals, which is what Clare is referring to, and then I think you start seeing better pricing. But the feeding(ph)
is not going away, Apple is not going away, these big tech companies are merely re-pricing for future profits.
SOARES: Appreciate it, Richard, I simplified the question because I think the timing with the U.S. election is critical of course -- go on, go on.
You know where I was going. I'm actually going to go and talk -- speak about Kamala Harris in just a momentum. But I thought the --
QUEST: Yes --
SOARES: Timing is interesting, given of course, what we've heard from the Republicans in the attacks against the Democrats on the question of the
economy. Richard Quest, thank you very much. And Clare Duffy, to you both, appreciate it, Richard will be back in about an hour or so.
Well, the market volatility is posing a new challenge for U.S. Vice President -- and I was just saying there, Kamala Harris, as she works to
get her two-week old presidential campaign off the ground, and really highlight her economic pitch. Harris is finalizing her choice for her
running mate and is set to decide we're being told by Tuesday.
Now, a source tells CNN that as of Monday morning, she still had not made a decision, but the top contenders, let me show them to you, Minnesota
Governor Tim Walz, Pennsylvania Governor Josh Shapiro and Arizona Senator Mark Kelly.
Harris is expected to appear with her choice at a rally in Philadelphia, we are told perhaps on Tuesday, and this comes as new "CBS' YouGov Poll shows,
there is no clear leader between Harris and former President Donald Trump, as you can see there on your screen. Let's digest all of this with Larry
Sabato; he is a director of the Center for Politics at University of Virginia.
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He's also an editor of the book, "A Return to Normalcy: The 2020 Election That Almost Broke America". Larry, great to see you. Look, let me pick up
with my discussion with Richard Quest and Clare Duffy, because this sell- off that we've seen, the stock market we saw in Asia, we saw in Europe, we're also seeing in the United States, and the anxiety that some may say
over the state of U.S. economy.
I suspect the timing of this won't be particularly good if it drags on, may I add for Kamala Harris. Talk us through the risks politically here on the
question of the economy.
LARRY SABATO, DIRECTOR, CENTER FOR POLITICS, UNIVERSITY OF VIRGINIA: Well, the economy is already the co-big problem that she's got, the other being
the border and immigration. If the economy actually and perceptively worsens, it's really not going to take much to make the election out of
reach for the Democrats.
Now, we're a long way from that, a long way, meaning a month of this is still going on in September, then I think people can start making
preparations for Republican administration. But it's not, it's early August and one presumes as Richard was suggesting that this is more short term and
it doesn't indicate a deeply-disturbed American economy.
SOARES: And that's where everyone is hoping, and as stated, that's where it looks that way like Richard was saying. In the meantime, Larry, we just
showed our viewers kind of the choices, the most consequential decision right now for Kamala Harris. And that's, of course, who is going to be her
running mate?
I want to show viewers again, some of the top three contenders at this moment. We've got Tim Walz of Minnesota, Josh Shapiro of Pennsylvania as
well as Mark Kelly of Arizona, Senator Mark Kelly of Arizona. Politically, electorally, Larry, who is the best candidate here?
SABATO: Oh, I think it's a pretty easy choice. It would be Governor Shapiro of Pennsylvania, because Pennsylvania has 19 electoral votes, and
Governor Shapiro is enormously popular in Pennsylvania, which is split right down the middle between Democrats and Republicans.
He really could help Kamala Harris carry that state, and without Pennsylvania, she is not going to win the presidency. You could also argue
without Pennsylvania, Trump won't win it. So, it's a critical state, maybe the critical state in this election. So, that's -- and he's also a very
good speaker. All of these things come into it.
But he's also controversial in some ways. He's a very strong supporter of Israel and the Palestinian and Arab-American parts of the Democratic Party
have been criticizing that. But you know, there are always pluses and minuses, Isa. There is --
SOARES: Yes --
SABATO: No perfect candidate.
SOARES: Let's flush -- flesh that out if we could on the controversial aspect because he has, like you say, Larry, has been facing kind of an
onslaught of attacks from more kind of progressives for his support for Israel. And important to note for our viewers that his support, his current
stance on the issue is kind of in line with mainstream Democratic Party. So, what do you make Larry, of these attacks? How much do you think that
this will play into Kamala Harris' decision at all?
SABATO: Well, I'm sure she's taking it into account. I certainly don't think it should be a critical factor, but I'm not in the room. I don't know
what she's -- what she's thinking precisely. But you have to look at what a candidate can do for you. You have to win before you can govern. It's just
so basic. And it's amazing how many political activists can't focus on that. It's obvious.
SOARES: Who would the Republicans, you think want to see as VP for Kamala Harris?
SABATO: Among those three, they would want Governor Walz, because while he doesn't hurt Kamala Harris, and he's perfectly agreeable. You know, the dad
liked -- well, so was Tim Kaine who ran with Hillary Clinton. He was supposedly America's dad, didn't get any electoral votes for Hillary
Clinton.
So, if you're not winning additional electoral votes, you're just there and you're going to become invisible quickly. That's what happens to vice
presidential candidates.
SOARES: And as you heard, as mentioned earlier on introduction, Larry, we have some polling that shows kind of Kamala Harris kind of almost neck-and-
neck really. One of them has actually her beating Trump nationwide, but that's, I mean, within the margin of error. So, the question now going
forward is how does she keep this momentum, Larry?
Because she certainly energized Democrats and has, you know, stirred donors. I think when we mentioned last week, a campaign -- where is it?
Raised $310 million in July, more than double of what Donald Trump receives. So, how does she keep this going?
SABATO: She needs a good public reaction and press reaction to her vice presidential pick, I assume announced tomorrow. That is critical because
that's going to carry her and this new nominee all around the country to every single swing state and into the Democratic Convention.
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The convention is two weeks from now. So, you keep that going, you're already at the end of August virtually, and the traditional startup
campaigns though, we abandoned it decades ago, is labor early September. So, if she can keep the momentum going, she's going to have at least a
small lead by early September.
Now, whether it will survive or not, we'll see. But Isa, remember, it's not just what's happening with Kamala Harris, is the fact that Donald Trump is
discombobulated. It's so obvious he hasn't figured out how to attack Kamala Harris. He's making loads of mistakes, and he's spending his bullets on
fellow Republicans. Does that make any sense? Only to Donald Trump.
SOARES: What's -- what happened to the debate when they're supposed to debate? I think I had read that he was no longer -- he shifted the date of
the debate with Kamala Harris, I think how much -- is she getting under his skin here, Larry?
SABATO: Yes, well, that was a signal right there. Trump actually said, I'm not doing it on the date that you want, even though --
SOARES: Yes --
SABATO: I agree to. I'm not doing it with the network you wanted, "ABC", even though I agreed with it. And I'm not doing it without an audience even
though I agree to that, I want a giant arena full of Trump boosters who will boo and cheer everything I say, cheer and boo everything you say,
Kamala.
OK, what does that tell you? He's backed out of it.
SOARES: Well --
(CROSSTALK)
SOARES: Yes, he does, he does indeed. That's a very important detail. That's a very important detail. Larry, always great to see you, appreciate
it, thank you very much.
SABATO: Thanks, right.
SOARES: Well, U.S. President Joe Biden is holding crisis talks with his national security team this hour, amid growing fears of an all-out war in
the Middle East. The U.S. is tightening defense cooperation with Israel as it braces for a potential attack from Iran as well as its proxies.
The head of U.S. Central Command is in Israel right now to assess the security situation. Today, Iran's Foreign Ministry said it doesn't want
regional war, but says it must take deterrent action to prevent further instability after a series of high-profile, of course, assassinations
blamed on Israel.
Turkey has now joined countries urging its citizens to leave Lebanon amid fears of a wider war. Hezbollah says it hit a military site in northern
Israel today, while Israel says it struck multiple Hezbollah targets in Lebanon overnight. Let me get more from the very latest from Jeremy
Diamond, is live for us in Haifa in northern Israel.
And Jeremy, look, the message from Tehran, I think has been quite clear, they will respond. The question now becomes, how does it respond? What are
you hearing at this moment, at this tense moment, I imagine in terms of how Israel is preparing?
JEREMY DIAMOND, CNN CORRESPONDENT: Well, what's interesting is the Israeli military is not only preparing for this massive air defense scenario
effectively, potentially a reprise of what they had to do back in April with his international coalition that included several Arab countries that
helped defend Israel from that barrage of 300 missiles and drones.
But they are also at this hour preparing not only to do air defense, but also preparing for potential counter strikes. The Israeli military saying
over the weekends that they were reviewing options for a potential retaliatory action by Israel for the retaliatory action that Iran would
carry out against Israeli soil.
And so, you can hear, just hearing that word retaliatory, the extent to which this could be a very slippery slope into a broader and far more
dangerous regional war. The -- we've seen videos of the Israeli military's chief of staff as well as the top Northern Command General in Israel, both
of them reviewing and approving operational plans, offensive operational plans, we should note for those potential scenarios.
The Israeli Prime Minister for his part over the weekend, telegraphing multiple times that Israel will exact a quote, "very heavy price for any
Iranian attack against Israel." And all of this of course, is intended to try and provide some kind of a deterrence factor to make Iran even just
slightly perhaps second guess what it is about to do to perhaps recalibrate its actions.
And of course, on top of that, what you also have is a flurry of diplomatic activity in the region intended not only to solidify that coalition that I
was talking about back in April that helped defend Israel against those missiles and drones. But also to try and send clear messages to Iran to try
and de-escalate the situation.
It does not seem that those diplomatic efforts for now are working in terms of getting Iran to step off of this ledge at the moment. But the question
is, will it help to calibrate Iran's response, and perhaps to try and avoid the outbreak of that regional war. But there's no question that we are at a
very tense moment in the region right now, Isa.
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And even just tonight, we are continuing to see those cross border attacks between Israel and Hezbollah, multiple air raid sirens sounding in northern
Israel in just the last hour, but of course, that has been the usual tit- for-tat since October 8th. What we are anticipating, what we are waiting for, what we are expecting is something perhaps far more severe, Isa.
SOARES: A tense moment, a dangerous moment as you outlined there for us, Jeremy, at the heart of this, of course, this tension is the conflict in
Gaza of course. Today, we learned the Palestinian authorities in Gaza preparing for a mass burial there, I think of 89 bodies or so. Just what
more can you tell us?
DIAMOND: Yes, we have seen this happen periodically throughout this contract -- conflict is, Israel returning the bodies of Palestinians to --
via the Kerem Shalom Crossing into Gaza. They are returning them with very little identifying information, if any at all. In some cases, these appear
to be bodies that were dug up at cemeteries inside of Gaza as Israel searched for the potential remains of hostages.
In this case, though, the Israeli military isn't providing any information about these bodies, about where these bodies were taken from, where they
were brought to, and who these people were? Eighty nine bodies as we understand it, and they are mixed up into a series of body bags.
According to Palestinian officials, the bones of 13 different people were found in just one of these body bags, and all of this is of course,
heartbreaking for the families who gathered at this Khan Younis cemetery where these bodies were arriving, hoping that there would be some kind of
identifying information to tell them that their loved ones' remains had been found.
Some of these family members have not known where their relatives have been for weeks now, Isa.
SOARES: Jeremy Diamond for us in Haifa today, thank you very much, Jeremy. And still to come tonight, violence fueled by the far right grips the U.K.,
we'll have a live report from one area impacted by the unrest. That is next.
(COMMERCIAL BREAK)
SOARES: Well, hundreds of people have been arrested in the U.K. as violent protests gripped much of the country over the weekend. Rioters vandalized
hotels, starting fires and smashing windows in locations, reportedly sheltering asylum seekers.
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Much of the violence is targeting migrants fueled by far-right groups spreading misinformation about the background of the suspect in the
Southport attack. Now, you may remember this, three girls were fatally stabbed last week. British Prime Minister Keir Starmer vowed to ramp up
criminal justice after he chaired his first cobra emergency meeting earlier today.
Our Nada Bashir joins me now from Rotherham in England, one of the places at the center of the unrest at this weekend. And Nada, what we have seen,
and we played some of the footage here, you know, over the weekend is just truly ugly. Just give us up-to-date, bring us up-to-date with the very
latest, and what the government is prepared to do this, to stop this sort of violence.
NADA BASHIR, CNN REPORTER: Well, that's right, Isa, hugely troubling scenes across parts of the country over the weekend. The scene here in
Rotherham is a lot calmer, of course, the police is still present. But this was one of the areas targeted by those far-right riots, violent, racist
riots are taking place around this hotel behind me, one of the hotels reportedly sheltering asylum seekers who had come to the country.
But there are mounting concerns that these riots will only continue despite the efforts of the U.K. government to try and clamp down on these riots.
We've been hearing from politicians throughout the day, including, of course, the Prime Minister Keir Starmer, saying that they will take tough
legal measures against those rioters.
But again, we are hearing more calls for more riots throughout the country over the course of the weekend. The question remains whether the police
will be able to do enough to quell these riots as they continue to rise. Take a look.
(BEGIN VIDEOTAPE)
(RIOT)
BASHIR (voice-over): Violent clashes in the northern English town of Rotherham.
(CROWD CHANTING)
BASHIR: Far-right rioters among hundreds across the country seen here facing off with police. The target of their rage, this hotel reportedly
housing asylum seekers.
(on camera): Like many hotels across the country, this hotel behind me had become a vital shelter for asylum seekers coming to the country, many of
whom have fled war and persecution at home, including countries such as Afghanistan, Syria and Sudan. This should have been a safe haven for them,
but instead, over the weekend, this became the target of violent and racist attacks by far-right rioters.
You can see behind me the smashed windows have now been boarded up. At one point, rioters even attempted to torch the building. And this is just one
of several locations across the country that have been targeted by these far-right rioters. Britain's Home Secretary, Yvette Cooper has pledged
swift action to bring perpetrators to justice.
With hundreds said to have already been arrested and police warning that their search for those involved will continue.
LINDSEY BUTTERFIELD, ASSISTANT CHIEF CONSTABLE, SOUTH YORKSHIRE POLICE: Please, be assured, if you were there, we will find you, and you will be
held accountable for your part in yesterday's violence.
BASHIR (voice-over): Violent anti-immigration riots have been sweeping across the country in the wake of the horrific killing of three young girls
in Southport, six-year-old Bibi(ph), seven-year-old Elsie(ph) and nine- year-old Alice(ph) stabbed to death while at a dance workshop in late July.
While the tragedy brought members of the local community together in mourning, a troubling disinformation campaign centered around false claims
that the attacker was an immigrant has been seized on by members of the far-right.
(CROWD CHANTING)
BASHIR: Drawing condemnation from the country's Prime Minister.
KEIR STARMER, PRIME MINISTER, UNITED KINGDOM: If you target people because of the color of their skin or their faith from now these far-right.
BASHIR: With renewed calls for further riots across the country this week, there is growing concern for the safety and security of Britain's minority
and ethnic communities. The Home Office announcing on Monday that Mosques in the U.K. will be offered greater protection with new emergency security.
But this latest spate of violent racism and in some instances, Islamophobia has also inspired others to take a stand --
(CROWD CHANTING)
BASHIR: Including in Lancaster, another flashpoint for anti-immigration riots. And in Hull, where dozens of volunteers arrived with broomsticks and
trash bags, ready to clear up the debris in the wake of this weekend's unrest.
NADINE BALMER, HULL RESIDENT: If people are going to bring 200 people out to incite here, we're going to bring 20,000 out to incite good.
BASHIR: But it remains to be seen whether cooler heads will prevail as the government ramps up efforts to crack down on rioters and the country braces
itself for yet more violence.
(END VIDEOTAPE)
SOARES: And our thanks to Nada Bashir for that report. And still to come tonight, Bangladeshi protesters take to the streets in celebration of Prime
Minister Sheikh Hasina's resignation. We'll unpack what this means for the south Asian nation. That is next.
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(COMMERCIAL BREAK)
ISA SOARES, CNN INTERNATIONAL HOST: Welcome back everyone. If you're just joining us, let me bring you up to date with our top story this hour is
really the global stock market sell-off that we have been seeing which really started in Asia now into the United States.
You can see the Dow right to red hours right across the board. The NASDAQ there -- NASDAQ down 3 percent. S&P also down to 2.5 percent. A similar
picture with the Dow Jones Industrial was -- they've come up -- they've got better, actually, as the day has progressed. Steep losses earlier today. I
think the Dow opened down more than 1,000 points lower. Tech heavy NASDAQ also -- and the S&P, also taking a nosedive.
And all this goes back, if you remember, to Friday, when we saw disappointed U.S. Jobs reports. There's now concerns over the Federal
Reserve and how they may act. Many wondering at this stage whether the U.S. Central Bank waited too long to begin cutting interest rates. We keep an
eye on those numbers, of course, and we'll keep you updated on all the market moves.
Now, the prime minister of Bangladesh has resigned after weeks of deadly anti-government protests. Demonstrators storm the official residence of
Sheikh Hasina in the capital, Dhaka. She has now reportedly fled the country. The army chief says the military is forming an interim government
as people take to the streets to celebrate Hasina's resignation. Hanako Montgomery has the details.
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(BEGIN VIDEOTAPE)
HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): Forced out of office, Bangladesh's Prime Minister Sheikh Hasina, in a dramatic resignation Monday
after weeks of deadly antigovernment demonstrations.
Thousands of jubilant protesters stormed her official residence and scenes aired on local TV. Chairs, tables, and televisions looted from what was one
of the most protected buildings in the country.
GEN. WAKER-UZ-ZAMAN, BANGLADESHI CHIEF OF ARMY STAFF (through translator): I have given orders. The army will not fire at anyone. The police will not
fire at anyone.
MONTGOMERY (voice-over): The country's army chief, Waker-uz-Zaman, now calling for the same students who brought about Hasina's downfall to help
them maintain peace, and announcing that an interim government will be formed by the military.
It came after antigovernment protesters were attacked in the capital Dhaka on Monday, according to a CNN fixer in the city.
Dhaka is a battleground. That's how one witness described the chaotic scenes on Sunday as tens of thousands of protesters took to the streets,
some wielding sticks and knives, demanding has seen his resignation. Dozens of people were killed on Sunday alone in a resurgence of protests that have
spread nationwide with violent clashes erupting between demonstrators, police, and ruling party supporters.
Rallies that began last month over quotas for civil service jobs have escalated into widespread fury with protesters demanding Hasina and her
ministers be held accountable for the rising death toll. Protests began in July, led by students angry over hiring rules that would reserve more than
half of civil servant positions which are highly prioritized for select applicants. Students said it's a discriminatory system that would cut down
on job opportunities in a workforce where an estimated 18 million young people are unemployed.
In the clashes that followed, at least 150 people were killed, thousands injured, and about 10,000 arrested. A military enforced curfew and a mobile
and internet blackout attempted to suppress protests, as well as a ruling by the country's Supreme Court to reduce the quotas. But public anger has
only intensified with protests returning in recent days.
UNIDENTIFIED FEMALE (through translator): It wasn't possible to stay at home anymore. Everyone is on the street. Many people who are younger than
me are no longer with us. They've been killed.
MONTGOMERY (voice-over): Hasina blamed her political rivals for the unrest, saying the main opposition party and other adversaries infiltrated
the student movement. The human rights groups have accused authorities of using excessive force to stifle dissent and curtail civil liberties in the
past.
Now, Hasina's 15 straight years in power are over. The student movement celebratory, but what next for the country now under military rule is
uncertain.
Hanako Montgomery, CNN.
(END VIDEOTAPE)
SOARES: Well, the head of U.S. Central Command is in Israel to assess the security situation as the country braces for a possible attack by Iran.
Israel's defense minister met with Air Force commanders today, saying they must be prepared for anything. Iran is vowing to punish Israel for a series
of high-profile assassinations, calling the threat and retaliation deterrence against further instability.
New attacks across Israel-Lebanon border are only fueling, of course, those tensions. Hezbollah says it hit a military site in Northern Israel today,
as we heard from our Jeremy Diamond in the last 20 minutes or so. Let's get some perspective from Daniel Levy, president of the U.S./Middle East
Project. He's joining us from Scotland tonight, a well-known face on the show.
Daniel, great to see you. Look, this is clearly region on edge as it braces for Iran to -- and all proxies, I should say, to retaliate. We've heard
from Iran. Their message is clear. They're saying that blood vengeance is certain. How do you think Iran may respond here? Will it be solo? Will it
leverage proxies in the region?
DANIEL LEVY, PRESIDENT, U.S./MIDDLE EAST PROJECT: Well, of course, Israel has carried out these assassinations, these extrajudicial killings, in
fact, off the back of 10 months, over 300 days since an attack on October 7th, which can't be excused, since the mass killing of civilians, the
devastation, the causing of a humanitarian catastrophe, 40,000 Palestinians dead, over 15,000 children.
If you wanted to dial this down, you have to put an end to that. And were America, were the Biden administration to have a diplomatic strategy to de-
escalate, that's what they would have to lead with. Using their leverage to get a ceasefire in Gaza and then to those attacks so that one could have
the possibility of a regional deck de-escalation. They haven't done that.
[14:40:00]
What we saw in April, after an Israeli assassination in an Iranian diplomatic compound in Damascus, was a measured Iranian response, which
showed they had capacity, which was broadcast in advance, which allowed Israel to be told, don't now ratchet things up. Will Iran go for something
similar and will Israel respond similarly?
Because what we know now for sure is that Prime Minister Netanyahu sees political benefit in an open-ended war. The Biden administration has been
unwilling to use its leverage to prevent that. And so, we are at a crossroads and at a time of great unpredictability, as you said.
SOARES: Yes. And look, going back to that attack in April, of course, when, just a reminder for viewers, Iran launched, what, 300 or so
projectiles, a heads up, I believe, Daniel, was given, right? Given how embarrassing this strike was in Tehran, I wonder how aggressive you think
that this -- there will be, because the risks here, as Jeremy, we heard him saying, are not just huge, but it's so dangerous, this juncture.
LEVY: Exactly. Look, assassinations, extrajudicial killings, Israel has a long history of carrying these out. It assassinated, it killed the founder
of Hamas, Sheikh Yassin. It killed many of the Hamas leaders. Hamas is still there. It assassinated the leaders of Hezbollah, Mughniyeh, in 2008.
Hezbollah is still there, stronger.
It -- the Americans took out Qasem Soleimani in an extrajudicial killing. The Iranian Revolutionary Guards Supreme Commander. Iran is still strong.
So, these actions do not shift the strategic equation or the military equation, but they can sap morale and they can generate a response. And the
question here is, do either Israel or the U.S. have a strategy that goes beyond the military?
Now, Netanyahu shows no interest in politics or diplomacy. Does the Biden administration show an interest in those things? Because if the signal Iran
is receiving is that Israel continues to have a green light to do anything, then Iran may draw the conclusion, and Hezbollah may draw the conclusion
that this is going to end in a regional war, so we might as well set out our terms.
There is quite a consensus, Isa, as you know, because you follow this closely, that the escalatory actor, the unpredictable, dangerous actor, is
not primarily Iran and the Axis of Resistance, it is primarily Benjamin Netanyahu and the axis of Zionist extremism, and I think it's correct to
call it that.
The U.S. has to decide whether it's aligning with that. Arab states have to make that decision or whether they're going to wind this down. That's going
to be decisive.
SOARES: Very quickly, Daniel, I've seen the Delhi Telegraph just over the weekend quoting a senior Israeli source said that Joe Biden's decision to
quit the presidential race has emboldened Benjamin Netanyahu to take bolder action against Iran.
I mean, what do you make of that comment? What do you make of the timing of some of these assassinations, even if Iran -- even if Israel says it's not
behind it?
LEVY: I do think this is part of the calculation and the equation, but it's not Biden quitting the race that has emboldened Netanyahu. It is that
America has been dishonest with its own public, with the world, perhaps with itself, by saying the only problem was Hamas and the Axis of
Resistance, and not acknowledging that they have leveraged with Netanyahu, they haven't used it, they continue to send the arms. We would not be where
we are today if the U.S., Biden administration had not allowed this to happen, had not indulged and given Israel a green light.
And it's humiliating that the thing that they think they could use is to leak stories to their favored media outlets. I'm not referring to you here,
that, hey, I was tough with him on a phone call. That's not serious. That's American weakness. That's humiliation.
SOARES: I'm glad you clarified you're not looking at me. Appreciate, Daniel. Good to see you, Daniel. Leave you there. Thank you very much.
We have just news coming in to CNN and United Nations investigations has found the nine employees from its main Palestinian relief agency, quote,
may have -- I'm going to say may have been involved in the October 7th attack and no longer work at the agency.
The investigation began in January when Israel accused some UNRWA employees of participating in the attack. A spokesperson tells CNN some of the nine
were fired in January and others later after new allegations were made. The U.N. investigated a total of 19 employees who were accused by Israel. So,
this just coming in to CNN. U.N. probe found nine UNRWA employees may have been involved in the October 7th attack.
[14:45:00]
We'll stay across the story as soon there any more developments, of course, we'll bring it to you. We're going to take a short break. See you on the
other side.
(COMMERCIAL BREAK)
SOARES: While fashion accounts for 10 percent of the world's green gowns - - greenhouse, I should say gas emissions as part of our Going Green series. We are showcasing innovative solutions that aim to make the industry more
sustainable. In Finland, a former waste management expert is giving a new life to old clothes, as Lynda Kinkade now reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: This is somebody's old jeans that has been shredded, and now it's ready to go to a transformation.
LYNDA KINKADE, CNN INTERNATIONAL ANCHOR (voice-over): In Finland, Infinited Fiber Company turns discarded cotton blended fabrics into Infinna
fiber, a 100 percent recycled textile.
PATRI ALAVA, CEO, INFINITE FIBER COMPANY: One truckload of textile waste, every second it's been landfilled or incinerated. Traditionally and
presently, clothing are made by using virgin materials, which are either say 65 percent made of plastics oil-based causing the microplastics
problems or then using virgin cotton. Cotton growing is major consumer of fresh water.
We can take in the worst quality of material, which is broken, dirty and so forth, turning that into premium quality new textile materials. We're using
less water. We are using less energy. And circular fashion is taking care of that waste problem.
KINKADE (voice-over): Cotton is the second most used textile fiber after polyester. And it's a challenging material to recycle, according to Alava.
But advancements over the last few years, coupled with demand from labels, have made it a reality.
ALAVA: This is our production facility. We bring in here the collected assorted textile waste. Purify the waste, remove polyesters, other
synthetic material, colors. We are regenerating the fiber, cutting it to the stable fiber length, finalizing the fiber, dry it out, and ship it to
the arm spinners, and it's ready to go to the brands. It looks and feels natural and soft like cotton.
And the materials can be mixed with elastane to make it very comfortable, stretchy materials or mixed with the polyester.
[14:50:00]
KINKADE (voice-over): Big name brands like H&M, Adidas, and Patagonia have begun to incorporate Infinna into their lines.
KIRSI ROINE, CHIEF CUSTOMER OFFICER, INFINITED FIBER COMPANY: Patagonia made a T cycle project where they're circulating old Patagonia T-shirts.
So, it's made 100 percent out of old clothes. Fully (INAUDIBLE) products. This is a mix with Infinna and Lyosol (ph).
ALAVA: Our main challenge is facing the fact that it's high volume and high-speed industry. So, really getting innovation, which is quite new into
the volumes what are required by brands. We are in the process of preparing and planning for setting up the first commercial scale factory.
We have a really unique solution, making premium quality cotton like fiber, having the same touch and feel, 100 percent from waste. And that's a unique
value for the brands, for the consumers, and naturally for the industry itself.
(END VIDEOTAPE)
SOARES: Very good news indeed. And for more stories from the series, you can visit cnn.com/goinggreen. And still to come tonight, Simone Biles makes
a final quest for gold at the Olympics in Paris. Plus, athletes pull out of the triathlon events in the Seine after getting sick. That is next.
(COMMERCIAL BREAK)
SOARES: Well, Germany has won a triathlon mixed relay event at the Olympics. That win is a bit of an overshadow really by the ongoing
questions over the water quality of the Seine River. Belgium withdrew after one of its athletes became sick. A Swiss competitor also dropped out after
falling ill. Olympic officials insist the water has been safe for swimming when the events have taken place.
Let's get the very latest. Our World Sport Don Riddell. So, Don, I mean, it doesn't look good for officials there who said the water quality was good
and swimmers could go back in.
DON RIDDELL, CNN WORLD SPORT: Yes, they stand by that. I don't think we know what these athletes actually are sick with, Isa. But yes, you make a
good point. They did have to pull out.
We all know the triathlon events in Paris have been a source of considerable angst because of the bacteria levels in the river. There was
just as much drama in the mixed relay event on Monday. As you say, on the eve of the race, Belgium had to pull out. Switzerland had to juggle its
lineup after their athletes got sick. Germany won the relay, ahead of Great Britain and the USA who took bronze in a photo finish.
[14:55:00]
(BEGIN VIDEO CLIP)
MORGAN PEARSON, TRIATHLON MIXED RELAY SILVER MEDALIST: I think they could have invested more into having clean water. It seems like they kind of were
just hoping for the best. And no, the athletes are going to do it because it's the Olympics. So, I think they could have invested more. Maybe
differently. It sounds like they invested a lot of money, but maybe they'd had the right -- the wrong ideas. They need more idea people.
(END VIDEO CLIP)
RIDDELL: There are still two more events to come in the River Seine, the men's and women's swim marathon at the end of the week. Sunday brought us
an absolute classic in Paris as the American Noah Lyles won the gold medal in the 100 meters. Lyles has emerged as the tracks biggest star in recent
years. He was less than convincing in the heats and in the semifinal. And in the final, he had to come from behind, storming to the finish and
winning in a photo finish. And it was so close that none of the finalists knew the result until it was confirmed on the big screen. Lyles taking gold
ahead of Jamaica's Kishane Thompson. Another American, Fred Kerley, took bronze.
The Olympics are now over for another American star, Simone Biles, signing off in style. She won silver in the floor routine on Monday, adding to the
three gold medals that she'd already won in Paris after the mental health setback she suffered in Tokyo three years ago. It's been a hugely
successful comeback for the 27-year-old. Her Olympic medal tally now stands at seven golds, two silvers, and two bronze.
And the gymnastics floor champion, Rebeca Andrade, is also a really good -- feel-good story. The Brazilian has suffered three ACL tears in her career.
This was her first gold, but fourth medal in Paris, and with another American, Jordan Chiles, taking bronze. We had three black athletes on the
podium. That was a first for Olympic gymnastics. Isa --
SOARES: And what a photo that is of womanship -- sports womanship. Appreciate it, Don. Thank you very much.
That does it for us for tonight. Do stay right here. Newsroom with Richard Quest is up next.
(COMMERCIAL BREAK)
[15:00:00]
END
