China Stock Market Gets Hit Due to Virus Scare; Democratic Presidential Candidates Push Campaign Slogans Ahead Iowa Caucus; Senate's Looming Acquittal of Trump as Senate Vote on Articles of Impeachment
ROSEMARY CHURCH, CNN HOST: Hello and welcome to our viewers joining us here on the United States and from all around the world. I'm Rosemary Church.</s>GEORGE HOWELL, CNN HOST: And I'm George Howell. This is "CNN Newsroom." And ahead this hour.</s>CHURCH: Stocks sink in China as the markets open for the first time in more than a week and made the coronavirus fears as the first death outside China is recorded.</s>HOWELL: The U.S. presidential election season kicks off Monday with the Iowa caucuses. Democrats running for president will set the tone for the race for the primaries.</s>CHURCH: And after 50 years, they are Super Bowl champions again. We will go to Miami for a live report on the big win for the Kansas City Chiefs.</s>HOWELL: All around the world, good day to you. We start with the Wuhan coronavirus spreading across China and stoking fears in that country's stock market. Trading got back underway in mainland China Monday after the lunar New Year break. Markets have just closed after plummeting as much as 9 percent there you see.</s>CHURCH: As stocks fall, the number of infections keeps rising. China now confirms more than 17,000 cases and 361 people have been killed. That means that this outbreak has killed more people in mainland China than SARS back in 2003. The first known death outside of China has been confirmed in the Philippines. Well, for more, journalist Kaori Enjoji is live in Tokyo but let's go first to CNN's Steven Jiang in Beijing. So Steven, with more than 17,000 people now infected, what is China doing to contain and fight this virus?</s>STEVEN JIANG, CNN SENIOR PRODUCER: Well, Rosemary, their focus right now is still containment in the epicenter, that's Hubei province, and with Wuhan being the provincial capita, because when you look at the numbers, Rosemary, the majority of confirmed cases still happens in Hubei. On Sunday, for example, Hubei reported more than 2,000 new confirmed cases and 56 new deaths. And there is also one worrisome trend there in the province. That is now more than half of the cases happen outside of Wuhan. Why is this alarming? Because that means more cases now happening in smaller or poorer places with even less of a health care infrastructure to deal with or to cope with this kind of outbreak. That is what you are seeing authorities further tightening their quarantine measures in this province, which of course already locked down almost 60 million people. In one city for example next to Wuhan, the authorities there are now requiring every household, only sending out one representative every other day to buy groceries. Everyone else has to stay in. Now, of course, they are also addressing the problem, the shortage of medical supplies and the personnel and other resources throughout the province. Already we see more than 8,000 medical workers from the rest of China being sent in to reinforce over worked local doctors and nurses. The authorities, of course, are also building two brand new facilities on the outskirts of Wuhan, one of which just got completed. And they are now open as we understand, with the Chinese military taking over this facility with more than 1,000 hospital beds ready to receive patients on the outskirts of Wuhan, Rosemary.</s>CHURCH: All right. Steven Jiang, thanks for bringing us up-to-date on the situation there across China. Appreciate it.</s>HOWELL: And now live in Tokyo, Kaori Enjoji is following the story there for us. And Kaori, look, people are certainly nervous, staying off the streets and that is having an impact on the economy throughout Asia.</s>KAORI ENJOJI, JOURNALIST: Absolutely. This is as expected. A knee jerk reaction in the capital markets today with billions, hundreds and billions of dollars wiped out from the equity markets in China. Shanghai Shenzhen opening down very, very sharply and still languishing around those levels. We are seeing reaction one week of closures in these markets and they're playing catch-up to that. But it's not just the equity markets that are responding like this. We have seen a sell off across the board. Take a look at commodities, iron, ore, copper, crude oil, all down very sharply in Asian trading. And on top of that, you're seeing a reaction in yields as well. I think the big litmus test is going to be how Wall Street opens because it was down already on Friday. They've had all this time to digest it and see whether or not these new cases of the coronavirus are going to wreck havoc on that market again when it opens later on today. The central bank of China in times like this, central banks are worried that rates are going to spike so they flood the money markets with cash. And that's exactly what they did today and to try and stem this off low. And their -- this injection what they call of liquidity is the biggest we've seen by the People's Bank of China since 2004. That's the market reaction. I think the longer term focus will be on the supply chain and this is worrisome. I covered the earthquake in 2011 here in Japan. I covered the Thai (ph) floods that wrecked havoc on the chip industry and it took months for supply chains to come back. And this is a very different environment we're now in 2020. Industries are much more specialized, which means that there might be a chip factory. There are lots of chip factories in Wuhan that makes a particular chip that a company, electronics device maker needs. And if you can't get your hands on that, even if the capital markets start to resume, this kind of resumption in business could take a long time. Not to mention if the cities are on lockdown, even if the factories come on board, how are you going to move them outside into the places that need them? And so I think the longer term implications are going to be fairly significant. But having said that, let's take a look at numbers because you want to know exactly what kind of impact we're talking about. Take a look at the Chinese economy. Chinese economy now is eight times larger than it was during the SARS outbreak. So, that gives you a little bit of sense of scale. Take a look at the exports that are coming out of China. Exports are six times larger than they were in 2003. That means the impact compared to the SARS situation in 2003 could be more significant. And then of course you have the impact on sentiment. Our consumers really going to be spending after an outbreak like this, guys.</s>HOWELL: To your point there, Kaori, China just a much bigger player at this point. So, certainly these numbers, the concerns among people there will have an impact. Kaori Enjoji, thank you for the reporting.</s>CHURCH: And later this hour we will have a live report from Ivan Watson in Macau where the coronavirus has turned the gambling mecca town into a ghost town. All right. Well, the first major contest, the 2020 U.S. presidential race is just hours away.</s>HOWELL: We are talking about the state of Iowa caucus-goers there. We'll make their pick for president and take a look here. The numbers, you can see the number of candidates that they'll have to choose from. A lot of candidates on the Democratic side.</s>CHURCH: Yes. And many of those White House hopefuls held rallies across the state this weekend, making their case to supporters as well as undecided voters.</s>BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATE: The future of this country is dependent upon what happens in November. And it all begins tomorrow night here in Iowa.</s>ELIZABETH WARREN (D-MA), PRESIDENTIAL CANDIDATE: But that's the key. Get in this fight because this moment will not come our way again. This is the moment that we will be measured as a nation and as a people. This is the moment.</s>JOE BIDEN (D), PRESIDENTIAL CANDIDATE: We choose unity over division, and we choose truth over lies. There is not a single thing we can't do. When we do it together we've never, ever, ever, ever failed to be an objective. We need to set our mind to it and did it together.</s>PETE BUTTIGIEG (D-IN), PRESIDENTIAL CANDIDATE: Are you ready for that sunrise as we put this presidency behind us? Are you ready to tell your friends? I believe you are going to make me the next president of the United States, and if you do I will work all day every day to make you proud.</s>AMY KLOBUCHAR (D-MN), PRESIDENTIAL CANDIDATE: So join us, caucus with us. We are going to do this and we are going to win.</s>HOWELL: All right, from Iowa and now to Washington, D.C., in just a few hours time, closing arguments will start in the U.S. president's impeachment trial. And after that, the vote on two articles of impeachment will happen on Wednesday.</s>CHURCH: And it's looking more than likely the U.S. president will be acquitted after the Senate voted 51 to 49 to block testimony from new witnesses. One key senator, Republican Lamar Alexander who voted no on witnesses explains why he thinks President Trump should be acquitted.</s>SEN. LAMAR ALEXANDER (R-TN): Well I believe he did, one, was that he called the president of Ukraine and asked him to become involved in investigating Joe Biden. The second thing was at least in part, he delayed the military and other assistance to Ukraine in order to encourage that investigation. Those are the two things he did. I think he shouldn't have done it. I think it was wrong. Inappropriate was -- the way I'd say improper, crossing the line. And then the only question left is who decides what to do about that?</s>CHUCK TODD, MSNBC HOST: Well, who decides what to do about that?</s>ALEXANDER: The people -- the people is my conclusion.</s>CHURCH: All right. Joining me now from London, Leslie Vinjamuri, head of the U.S. and the Americas Programme at Chatham House. Thank you so much for joining us.</s>LESLIE VINJAMURI, HEAD, U.S. AND THE AMERICAS PROGRAMME, CHATHAM HOUSE: Thank you Rosemary.</s>CHURCH: All right. So, quite a week in politics in the United States. Monday of course, a big night for Democrats with the Iowa caucuses. Polls show Joe Biden and Bernie Sanders neck and neck, but some Democrats haven't even made up their minds yet which is extraordinary. What is your sense of who might come out on top and why is Iowa still so very important?</s>VINJAMURI: Well, Iowa is important first because it's starting it out. It's always been a barometer of where things will go, although, obviously things could change and I think especially this time quite dramatically. But you know, it's really -- this is a state that voted for Obama twice, then voted for Trump. It is a swing state. It tells us a lot about the divisions in the nation. It's an aging state, but it has very important younger demographic as well. And I think if you look at those polls, you know, it's very -- even the pollsters, the best pollsters will say it's very difficult to predict, but we have Bernie Sanders and Joe Biden coming at the top in many of the polls. And this in some ways represents, you know, what we are all seeing in the Democratic Party, which is that divide between a very progressive base represented by Bernie Sanders and Elizabeth Warren, and a more moderate side which is what Joe Biden represents. And the fact that they are both pulling strong, I think tells us a lot about what we know very much about the Democratic Party. So, this is one that everybody will be watching, but even afterwards things will continue to develop.</s>CHURCH: It does, but for the Democrats, they are really looking for the person that can beat President Trump, and which one of them, if it comes down to Biden versus Bernie Sanders, which one could do that?</s>VINJAMURI: Yes. That is the $100 million question. And I think, you know, a lot of people that are watching this assume that right now the nomination is Joe Biden to lose and that across the board he might have the better chance. But again, this is a very difficult thing to call. And as we, now this election is likely to come down to just a few states. And so it's not about looking at a popular vote. It's about looking at what will happen in Wisconsin, Michigan, Pennsylvania when comes to November, so, a lot of play. A very specific electoral set of institutions, but I think there is a big question about whether Democrats will unite, whether they will turn out for the candidate that eventually merges on the Democratic side. That will really make all the difference to what happens in November.</s>CHURCH: All right. So, let's turn now to the impeachment trial. Of course, it's looking more likely now that President Trump will be acquitted Wednesday. So, what all did this impeachment trial achieve and have the Democrats inadvertently strengthen President Trump's hand here?</s>VINJAMURI: Well, I think this has been, as we know, a remarkable period in America's politics. Remember, the Republicans have moved. The people have not moved. It looks as you said, very much like it will go towards acquitting the president. But the fact that so many Republican senators now even recognize that the president did put pressure on Ukraine, that he withheld that military aid. And the argument now is who decides? Is this something for the Senate to decide or is this something for the people to decide. So, I think even having gone through the process, having heard the arguments, it's changed the historical record of what we will come to know about this period of American politics, about President Trump. And it will undoubtedly influence voters when they go to the polls. Now, I think there is a big question about independent voters. Remember that 66 percent of American voters wanted to see witnesses called. We know that they won't be called. But a lot of independent voters, right, that number remains extremely high amongst independent voters who wanted to see those witnessed called. So the fact that they weren't, may well have an influence on how independent voters think about this and how they vote when it comes to November.</s>CHURCH: Right. And extraordinarily, only two Republicans dared to vote with the Democrats last week to bring in new witnesses. That vote of course, failed. But how surprised were you that Republican Lisa Murkowski and Lamar Alexander voted against hearing from new witnesses? What does that tell us about the way Republicans think now and their support for Mr. Trump?</s>VINJAMURI: Well, I think, you know, we have seen this for Trump's entire presidency with a few exceptions. We have seen the Republican Party really coalesce right around the president, come out in support of him, even on issues that we would not have expected the Republican Party to support the president on. Obviously trade is one of those. But on this trial I think that, you know, the writing has been on the wall for some time. It had looked from the start that the Republican Party would really back the president. Part of that comes down to this argument of executive privilege that the Republicans really pushed on Part of it comes down to, you know, tight politics in their own local constituencies; concerns about, you know, re-elections. And then it does come back to this broader question of trying to read the American people which remained very, very divided on that question of impeachment and wanting to leave the choice with the American people. The American people have seen the evidence. They've seen the trial. And they will decide when it comes to November what they think of President Trump.</s>CHURCH: We'll see what they do decide in the end. Of course, Leslie Vinjamuri, thank you so much. I appreciate it.</s>HOWELL: Still ahead, a day of routine shopping turns into a terror attack and a shooting. Coming up, how London police were able to respond as quickly as they did.