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HALA GORANI TONIGHT

Commonwealth of Pennsylvania Releases Sex Abuse Report on The Catholic Church; Prosecutor Says Church Wanted to Cover Up The Cover-Up; Rescuers in Italy Search for Survivors but Hopes Are Dim; Those Who Live Near Genoa Bridge Complained About Chunks of Concrete Falling for Years; Deaths of Russian Journalists Put Spotlight on Kremlin Activities in Africa; Reuters: Suspect In London Attack Identified As Salik Khater; Russia Begins Patrols In Golan Heights; Erdogan Spokesman: We Don't Want Economic War With U.S.; Democratic Voters Usher In Series Of "Firsts;" Ex- Apprentice Contestant Speaks Out On Donald Trump. Aired 3-4p ET

Aired August 15, 2018 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[15:00:00] HALA GORANI, CNN HOST: Hello, everyone, live from CNN, London, I'm Hala Gorani, a shocking sex abuse scandal on a massive scale. There

are very severe questions for the Catholic Church after more than 300 priests have been found to have abused a thousand children.

Plus, how did a huge bridge collapse in Genoa, people are demanding answers.

Trump goes on the defensive against the former aid and reality television star. I spoke to another former "Apprentice" contestant to get insight.

We begin with that shocking report of sexual abuse within the Catholic Church in the United States. Now, you've heard others like this before,

nothing on this scale. A grand jury is reporting, is exposing, rather, decades of alleged rape and molestation of children in Pennsylvania and how

the church covered it up.

And the scope of this is staggering. More than 300 quote predator priests abusing more than 1,000 child victims. Now the report is distressing

reading, but here's just a sample. In one case, a priest raped a seven- year-old girl who was in the hospital after her tonsils were removed. In another a priest got a 17-year-old pregnant then forged a pastor's

signature on a marriage second quarter only to divorce her months later. It goes on and on and on. Another priest admitted sexually molesting a boy

and pleaded for help but was left in ministry for several more years. So how are survivors of some of this abuse reacting? Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I was groomed, starting beyond.

UNIDENTIFIED FEMALE: The day I met him, I was around 18 months old.

UNIDENTIFIED MALE: They targeted me because I was fatherless.

UNIDENTIFIED FEMALE: I was in my diaper. I ran out and ran right to him.

UNIDENTIFIED MALE: We were taught, I mean the priests and the nuns are god.

UNIDENTIFIED FEMALE: The word God makes me think of him and I just --

(END VIDEO CLIP)

GORANI: All right. There you have a sampling of some of the reaction there that was put together compiled together. A lot of emotion, of

course, Jean Casarez is covering the story from New York. Barbie Nadeau is Rome for the reaction from the Vatican.

So, Jean, these are, first of all, how did these men get away with these alleged abuses and crimes for so many decades?

JEAN CASAREZ, CNN CORRESPONDENT: Well, as the report states, it was the cover-up and the cover-up forms a very big part of this 885-page report.

In regard to the cover-up, it says there were secret archives in every archdiocese in Pennsylvania where they were investigating and they found

that in these secret archives, there actually was documentation of the abuse that was done and the perpetrator priest that did it. But the secret

archive was secret because it was locked and only the bishop in every diocese had the key.

They also said as part of the cover-up, the priest once they got so many allegations of sexual abuse and assault, they would shift and move them

around to various other locations and keep everything covered up. Well, the cover-up has led to the fact that out of 301 priests that they believe

had sexually assaulted these children at the time, only two are able to be prosecuted. The statute of limitations has run. But the attorney general

in Pennsylvania is determined this investigation will go on and this cover- up will be no more. Listen to him.

(BEGIN VIDEO CLIP)

JOSH SHAPIRO, ATTORNEY GENERAL, PENNSYLVANIA: These petitioners and for a time some of the diocese sought to prevent the spire report from ever

seeing the light of day. In effect, they wanted to cover up the cover-up. They sought to do the same thing that senior church leaders in the diocese

we investigated have done for decades, bury the sexual abuse by priests upon children and cover it up forever.

(END VIDEO CLIP)

GORANI: All right. Jean, I was going to say, before, I want to get back to you in a moment, Barbie Nadeau is in Rome. I was curious, the pope was

heard today but did not reference this report, right?

[15:05:00] BARBIE NADEAU, CNN CORRESPONDENT: That's exactly right. He addressed a crowd in a religious holiday inn Rome. He addressed a crowd in

St. Peter's Square. He prayed for the victims of the disaster in Genoa. He did not pray for the victims of those clerical sex abuse accusations.

That's something that bothered a lot of people here. We called the Vatican. We got a stern no comment from them. On their news Web site they

pointed to a statement by the United States church, in which they expressed their sorrow. By no means do they admit to culpability and that's

particularly unsettling, especially with this pope who seems to have a blind spot on this issue. Hala.

GORANI: Jean, some of these investigations are quite recent, right, from 2010, 2009, some of them?

NADEAU: Well, there are two cases that actually can be prosecuted. So, when you look at the ascent of 301 priests, not many, because of the

statute of limitations. A thousand unidentifiable victims at this point. They think there could have been thousands more, documents would have been

destroyed and others would not come forward to tell their story. Another thing that's impactful with regard to the Vatican not giving any response,

the reports say -- they don't say the number actually of the priests and bishops that covered this up are still with the church. They actually have

been promoted through the years to cardinal and bishop, still with the Commonwealth of Pennsylvania archdiocese.

GORANI: And Barbie, that was going to be my question to you, A, is this an ongoing -- clearly, this is an ongoing problem. Because if it is true

based on the allegations and the report, some of the high-ranking clerics, not only covered up abuse, but have been promoted since, this is something

the church has to get to grips with.

NADEAU: No, I think that's absolutely right. I think it's something this pope. He can't be held responsible for 70 years worth of violation. He

has only been in the office five years. We did see in Chile, for example, priests involved there. We have seen the resignation of high ranking

cardinals. We're not seeing this pope telling them to step down. We're seeing him accept the resignations. That's a difference. That's something

that the victims of these horrendous crimes want to see. They want it treated as a crime, not a sin.

GORANI: Thanks so much to both of you. I'd like to get the perspective of Father Edward Beck. He joins me live from Los Angeles. Thanks for being

with us. Are you troubled by the pope's silence on this today?

FATHER EDWARD BECK, CNN RELIGION COMMENTATOR: I am troubled by it, Hala. I don't think that it's if definitive silence. I think probably he will

have comment on it. Maybe not today. Maybe in Ireland when he goes there in ten days because the abuse scandal that that country has suffered as

well. So, I think something will come from the Vatican and the pope, maybe not today, maybe not within 24 hours of this report getting released.

GORANI: But I guess for some people, that isn't good enough. You heard Barbie Nadeau say the pope has not been calling on people implicated in

these horrific crimes to step down. He is being passive, not proactive in this case.

BECK: I think again the time frame, I think he should act as soon as possible. But I'm speaking as an American priest in the United States who

has to now deal with this as an issue once again and, of course, it saddens me and my heart brakes for the victims. I am also cognizant the fact the

pope is a pope of a world-wide church. Dealt with this in Chile, Latin- American countries. In Africa, this report was just released. It's 900 pages. He knew it was coming. I think while we should expect him to say

something right away. I think he will say it in due time. He will act the way he needs to act. I wish it was different.

GORANI: Yes.

BECK: I think you look at it from the perspective of a global church. It's not just the United States for him. Although, I think it's time for

him to finally address this definitively.

GORANI: We've seen this emerge in some parts of the world, obviously, not just in the United States, Father Beck, CNN spoke to an abuse who said the

church is more concerned with protecting its bottom line, according to this survivor. Its billions in assets than the people it has harmed. This is

what he said.

[15:10:00] (BEGIN VIDEO CLIP)

SHAUN DOUGHERTY, ABUSE SURVIVOR: When you have embezzled from the church as a priest you go to jail. When you rape a child as a priest, you get

transferred to a whole new flock of kids. So, it's a business. So maybe that will do it. Money has been their presser, their whole time in my

opinion. So, this right now is a public relation problem for his business and he is the CEO of that business.

(END VIDEO CLIP)

GORANI: How do you react to that?

BECK: Well, I would say, Hala, that there's truth in what that man says and financial concerns are certainly a part of what the bishop has taken

into account. But I'm more troubled by the fact that they seem to be most avoiding the scandal of what it would look like for the church and so the

instinct was to protect the institution over protecting the people for whom they are supposed to be pastoring. And I know it says in the bible that

never bring scandal to the church. But it says also never offend a child, that you should have a millstone around your neck and be thrown into the

river rather than to take offense or offended a child. Partly it's about money, perhaps, but I think it's about trying to protect the institution at

all costs and really you need to protect the vulnerable.

GORANI: Yes. I guess my question is, look, you've heard for many years now, of these scandals, in the Catholic Church, in many parts of the world.

We've counted on the Catholic Church. Some people have counted on the Catholic Church to police itself. To realize that there is a disease

within for some clerics will engage in this very reprehensible criminal behavior. But it hasn't worked, has it? Do they need outside

intervention?

BECK: I definitely think there needs to be independent investigation. It is law in the United States after 2002, there is mandatory reporting for

anyone with a credible accusation against him. It must be reported to the authorities. So that has, since 2002, been law here in the United States.

Globally, that is not yet the case. But I don't think an institution can police itself. I think you need independent bodies to do assessments, to

do studies, to do evaluations and then to give the results. I don't think you can police yourself, no.

GORANI: Father, always a pleasure. Thanks so much for joining us there with your take on this report that's come out today.

BECK: Thank you.

GORANI: I wish it were a more uplifting topic.

BECK: Yes, thank you so much.

GORANI: Now, horror, anguish and disbelief in Italy, emotions are raw. They're accompanied by countless questions as well. How could a bridge a

huge bridge, which ran over some densely populated areas have crashed down Tuesday taking at least 39 lives? Hundreds of rescuers in Genoa are still

frantically pulling away massive chunks of concrete, hoping to hear a voice or a body within the wreckage. Our Ian Lee is there.

(BEGIN VIDEO CLIP)

IAN LEE, CNN CORRESPONDENT: 50 years ago, the Morandi Bridge was celebrated as revolutionary, state of the art. Now, a mangled mess, this

bridge will be remembered for one of the deadliest accidents in the country's modern history. Rescuers still scour the carnage for survivors.

Hope fades by the hour. Davida Capallo, a firefighter and former soccer player and is a survivor. He was on the road when it disappeared.

(BEGIN VIDEO CLIP)

DAVIDA CAPALLO, BRIDGE COLLAPSE VICTIM: I felt myself going down in he car. I

thought that it was going to be the end and I was going to die. Then my car stopped. The car hit concrete and I got stuck. I touch myself to see

if I was in one piece as it was a massive shock. I then called the firemen straightaway. And they wouldn't want to help me first. Then I managed to

get out of my car. I was helped out of my car by the rescue teams.

LEE: His car is still in the twisted mound of steel and concrete. Alongside the wreckage, is the neighborhood of San Pedrina. We spoke with

a family who lives literally underneath that bridge in the shadow of danger.

They are part of hundreds of residents evacuated to a nearby shelter. They're relieved but angry.

GIOVANNI DELOGU, LIVED BELOW COLLAPSED BRIDGE: For years and years, we spoke of our disappointment about the bridge and the structure. As time

went by, chunks of the bridge fell down. It was a tragedy we anticipated.

LEE: Genoa's mayor confirmed to CNN the bridge need repaired. Instead the national government had contracted out to Autostrade Del Italia, a

privately-owned company. They say maintenance work was under way, but it's too late the tragedy residents predicted happened for the whole world to

see.

(END VIDEO CLIP)

GORANI: Let's get to the scene, Ian Lee is live from Genoa, Italy. So, the death toll climbed overnight. We're up to 39. Any hope at all of

finding any survivors at this stage?

LEE: Hala, I put that question directly to the chief of the fire services, who is here on site. He said they have to have hope. What they're doing

is that they are cutting these pieces of concrete and they have these enormous cranes that we can see behind me. I don't know if you can see

them. Because it's dark. But they are lifting them up. Then they go a little deeper, listening, trying to hear if anyone is down there. They say

when there is an earthquake, people can be trapped in rubble up to a week. They can be alive. That's where they are drawing this hope, this

inspiration. Really it looks less likely the last time they pulled someone out alive was yesterday.

GORANI: So, there are still people missing? In other words, there are still people who have been reported missing who are believed to have been

on the bridge when it collapsed?

LEE: You know, frankly, they don't know how many people could be still trapped in there until they have gone through all the pieces of debris.

That's one thing we've asked. We said, how many people do you believe are there? They said, frankly, we don't know until we get to the bottom and

find every piece to see if there is a car missing that they didn't know about in the first place?

GORANI: Lastly, obviously, it's too soon for answers, but this was a dramatic failure of a major, major bridge. What's to blame? People have

talked a lot about the fact that there have been complaints about the bridge, it was undergoing maintenance, generally speaking in Italy,

austerity might have cut the government's earmark for big infrastructure thorough fares?

LEE: Yes. Can you go back three decades for complaints that people say that they had about this bridge, that it just was unsafe and we heard from

that gentleman in the report where he said that chunks would fall down from the bridge?

That is a long fall about 150 meters, that could easily kill someone. So, this was a real emergency before this bridge collapsed. And I asked the

chief of police, I said where is this investigation going now? Is this criminal? What are you looking at? He said right now, it's technical. We

need to figure out what was the cause of this bridge collapsing before we take in different directions.

That day when we remember that horrific video, where you can see the rain, the wind blowing and the bridge collapsing, residents here would say the

weather has played a factor in this bridge crumbling. So, they believe it did play a factor yesterday. But that's something that experts are going

to have to look at.

GORANI: All right. Yes, certainly, some of the experts we spoke to said, look, a big rain storm shouldn't bring down a bridge. I'm sure we will get

more answers. Thanks very much, Ian Lee.

Still to come tonight, three journalists left Russia to investigate a lead in Africa. Only their bodies came home. We take a closer look at the

story that may have cost them their lives. We'll be right back.

[15:20:00] (COMMERCIAL BREAK)

GORANI: A high stakes investigation brought three Russian journalists to the Central African Republic. They came back home in body bags, they were

looking into the presence of Russian mercenaries in a volatile country CAR, where various rebel factions are in control. So, who killed them and why?

Clarissa Ward has been following this gram story. She joins me now. What do we know of what happened to these three journalists?

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: It's been extraordinary. It's been over a week since these men were killed and we

still know so little about what happened to them. There are three different versions now how it was that they were killed, who was

responsible, still a lot more questions than answers. Take a look.

(BEGIN VIDEOTAPE)

WARD: Russian mercenaries are making their presence felt in the Central African Republic. Seen here stopped at a rebel checkpoint with truckloads

of military equipment. The rebels appear caught off guard.

Uniforms, magazines, you said you had civilian equipment, the man says. Nearly 200 Russians and plane loads of weapons have arrived in this

resource rich but unstable African nation since January. Officially, they are security consultants, invited with UN approval to help train government

forces. Unofficially, they are believed to be connected to a shadowy Kremlin-backed private security empire called Wagner. That is active in

eastern Ukraine, Syria and Sudan.

MIKHAIL KHODORKOVSKY, EXILED RUSSIAN TYCOON (through translator): They trained the local government troops. They also hold negotiations with

militants and they are also involved in the work of some structures obtaining diamonds and gold in the country. What else they do there?

Broader format we still have to learn.

WARD: Mikhail Khodorkovsky heads the investigation control center which helps three Russian journalists travel to CAR to unravel the mystery. They

never made it home. Just days after they arrived in the country, Alexander Rastorguev, Orkhan Jemal and Kirill Radchenkowere were found shot dead.

The journalists left the capital Bangui that morning and were expected to overnight in

Sibut on the way to Bambari. Instead, they abruptly deviated off course, heading into a no man's land. The Kremlin says they believe they were

killed by bandits in a robbery gone wrong. Khodorkovsky says there are holes in the story.

KHODORKOVSKY (through translator): They're starting to move at night when it's forbidden. They're moving in a direction that was not planned from

the beginning, instead towards a more dangerous route. And they do not inform their colleagues in Moscow. This situation is very mysterious.

WARD: What is known is that the journalists were pursuing a story that reaches deep into Kremlin circles. The U.S. Treasury says Wagner is headed

by a man called Dmitry Utkin who has been sanctioned.

Utkin has links to this man, Yevgeny Prigozhin, known as Putin's chef for his close relationship with the president, he has also been sanctioned by

the U.S. for running Russian troll factories.

WARD: Do you have any reason to believe that these men were killed because of the work they were doing?

[15:25:00] KHODORKOVSKY (through translator): Yes, I think exactly that, because if they had been murdered for armed robbery, this doesn't happen.

European journalists are not killed in circumstances like these. Some people we know in Russia were approached by people connected with the

Russian mercenaries and said that they warned the journalist not to go there. To keep themselves well away from the area. And that they killed

them. We don't have 100 percent certainty that this is what happened, but the version remains on the table.

WARD: Khodorkovsky has sent a team to CAR to investigate the killings, so has the Russian government. For the friends and family left behind, there

are more questions than answers.

(END VIDEOTAPE)

GORANI: Talk about first of all a courageous group of journalists, an extremely high-risk assignment. This Wagner Group, what do we know about

it?

WARD: We have tried to reach out to get some contact, some sort of -- to have them respond in some way to what we learned. They don't have an e-

mail address. They don't have a phone number. We contacted also the main company, they said they've never heard of this Wagner. So, Wagner Group

doesn't officially exist. What it really is, is a kinds of umbrella group of various different private security companies operating in different

countries across the world and the leadership of these countries is very murky as you saw.

GORANI: Who is paying them, whether it's in the CAR or Syria?

WARD: That's the million-dollar question. A lot of people are saying the Kremlin would have enough to benefit. It's much easier to deploy them than

your own groups you have a degree of plausible deniably. There is also the question whether this gives Putin a chance to have strategic depth in

affect. This is an area that has traditionally been dominated by the U.S. and in CAR by the French. So, a lot of different theories. A lot of

different questions. As we keep on saying, not many answers just yet.

GORANI: This is one volatile country. It's a patchwork of rebel groups outside of the capital, extremely dangerous. What would the Russians want

with the CAR?

WARD: One can only speculate that several things might be interesting to them. First of all, it gives them a real foothold in the region, since the

Soviet Union, they've had little foot print. CAR the domain of the French. So, this would give them a real sort of presence as they seem to be trying

to assert themselves more on the international stage, wanting to make a mark, show that they're there. Of course, also, CAR is rich in natural

resources, diamonds, gold, a lot of mining there. A lot of deals to be done to people who are willing to take the risks that are necessary to do

business in that area.

GORANI: All right. Our chief international correspondent, Clarissa Ward, thank you for that report, really interesting report on what's going on in

that part of Africa. Now to Afghanistan, where there has been more violence. Once again, the numbers are becoming more and more staggering, a

suicide bomber detonated inside an education center in the Shiite section of Kabul. Officials say almost 50 people were killed, dozens more wounded.

These were images of the aftermath. So far, no one claimed responsibility.

Afghan government force have been dealing with a wave of violence, including that Taliban assault on the city of Ghazni south of the capital.

We are learning more about the man carrying out that car ramming attack here in London. The focus is why? We'll have the latest on the search for

answers. Also coming up, we're keeping our eye on Turkey's economy as the president says he doesn't want an economic war with the U.S. His actions

may say otherwise. Richard Quest will join me after this.

(COMMERCIAL BREAK)

[15:30:20] GORANI: I want to update you now on that suspected terror attack here in London yesterday. We're finding out more about the man who

police say deliberately drove into a barrier outside the Houses of Parliament.

However, we still don't know what his motive was. I want to bring in CNN's Erin McLaughlin. She's been following the story since it broke. So, what

are we learning from authorities about this man?

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Well, police are making progress in this investigation. They have identified him. Although, they're not

naming him publicly. British media reports that his name is Salik Khater, a 29 years old, a British citizen, originally from Sudan now living in

Birmingham. And we are hearing from members of the Sudanese community in Birmingham as well say they're absolutely shocked about what transpired

here in London.

Yesterday, they said there's no signs that he was radicalized. They thought he was coming to London to apply for a visa to go back to Sudan.

So take a listen to what the spokesperson for the Sudanese community in Birmingham had to say about him.

(BEGIN VIDEO CLIP)

NASSAR MAHMOOD, SPOKESPERSON FOR THE SUDANESE COMMUNITY IN BIRMINGHAM: They knew him to be somebody who's quite sociable person. He is a keen

footballer. He plays regularly. He is somebody who is quite active. He's not the kind of person, you know, the loner type person and he wasn't known

to be a fervent worshiper.

And as far as we know, he never attended the mosque here. So this is what we gleaned from the community.

(END VIDEO CLIP)

McLaughlin: It's not exactly the description of someone who was radicalized.

GORANI: Exactly. I was going to say we've covered many terrorist attacks. Something doesn't -- it doesn't sound right to me, to be honest. It does

not sound like someone -- he did not fit the profile. He didn't go to the mosque. He went to a shisha cafe. His friends and family say he never

exhibited any signs.

Is it possible that the motive is not in this case terrorism?

MCLAUGHLIN: Well, it certainly seems a possibility at this point. The motive in this case is still a mystery. Authorities saying they're

suspecting terror because of a number of factors, the fact that Westminster was the target. It's been a target of terror in the past. The fact that

it appeared as though the car which was weaponized deliberately drove into that area, plowing into that security barrier, all of those factors leading

them to suspect terror. But that is not definite at this point. And motive really now is the focus of this investigation.

GORANI: So this is all circumstantial evidence. The target, the fact that a car was used to deliberately ram people and there was a third one, which

escapes me now. But in any case, it's not like at least, as far as we know, the police looked into all his devices or found communications or no

encrypted communications with (INAUDIBLE) and things like that. That that's what we don't know yet?

MCLAUGHLIN: Yes. If they have, they're not saying. And remember, yesterday after this transpired, authorities made it very clear at that

point, he wasn't cooperating which means he wasn't talking to them to be able indicate, at that point, a motive. Also, was noting no other weapons

were found in that vehicle. They believe he was driving it alone.

GORANI: All right. Erin McLaughlin, thanks very much for the latest.

To Syria now. The regime has managed to reclaim most of what it have lost with the help of Russia, of course. Now, Russian forces are taking on

another role patrolling the buffer zone between Israel and Syria in the Golan Heights. And we might suggest Russia is not leaving Syria any time

soon.

CNN's Fred Pleitgen is embedded with the military and sent us this report.

(BEGIN VIDEOTAPE)

FRED PLEITGEN, CNN CORRESPONDENT (voice-over): This valley could be vital of the next phase of the Syrian conflict, Quneitra at the foot of the Golan

Heights. The buffer zone between Israel and Syria.

On a Russian organized visit, Colonel Viktor Zaitsev shows me the area the Syrian military with Russian help recently retook.

COL. VIKTOR ZAITSEV, DEPUTY COMMANDER, RUSSIAN MILITARY (through translator): On the right, you can see the demilitarized zone. And

further down is the Israeli border. Behind us is the bravo line. Further along there is the post of the Russian military police which serves as the

guarantor of peace in the Province of Quneitra.

PLEITGEN: The U.N. observer mission abandoned its posts here when rebels took over the area in 2014. Now, Russia says it wants to bring the

observers back also to mitigate Israel's anxiety over Iran's possible presence.

Ousting rebels from this area was a huge achievement for the forces of Bashar al-Assad and their Russian backers. But it's also led to huge

concerns among the Israelis. They fear Iran could gain a foothold here.

Israel has expanded its cross-border airstrikes on Iranian positions in Syria and says it wants Russia to keep Iran away from its borders.

[15:35:06] Russia -- an ally of Iran in the Syrian war said it's conducting joint patrols with the Syrian police in the demilitarized zone.

LT. GENERAL SERGEY KURALENKO, RUSSIAN MILITARY (through translator): Currently our plan is -- and we are already implementing it, is to set up

checkpoints of the Russian military police along the Bravo line and I'll stress that in the demilitarized zone itself there are no Russian

checkpoints. But in total, we have four checkpoints operating.

PLEITGEN: The Syrian army with Russian support swept through most of southern Syria about a month ago. Now, that the anti-Assad rebels have

been ousted, the danger of a larger Israeli-Iranian confrontation here looms.

Fred Pleitgen, CNN, Quneitra, Syria.

(END VIDEOTAPE)

GORANI: It's starting to sound like deja vu. Tensions rising yet again between the U.S. and Turkey. The spokesperson for Turkey's president says

the country doesn't want an economic war, however, it slapped new tariffs on American fruit, tobacco, cars and other products. Ankara is retaliating

for the latest rounds U.S. tariffs that were announced last week.

So this is all taking a toll on the lira. But what about global markets? Is there a risk of contagion? Richard Quest is here in London with us.

How significant is this? Is this a temporary spat or could it become a big much bigger deal?

RICHARD QUEST, CNN INTERNATIONAL HOST: Oh, it could certainly become a much bigger deal. But the thinking is, is this financial Armageddon on our

doorstep? Probably not. It doesn't really have the capacity to blow the whole thing up. What it does do is start to weaken key countries, whether

it'd be India or South Africa, with their currencies, in terms of Latin America, in terms of the debt crisis. It makes things worse.

And in doing so, of course rises the value of the dollar, which in itself creates a whole new set of problems, except President Trump wants a higher

dollar.

GORANI: OK. So, what could diffuse this at this point?

QUEST: It's very difficult to see what, it's very difficult to see --

GORANI: It's all about the pastor. That was the beginning.

QUEST: Apparently there are people backing off of from that. Even the Americans are backing off and saying it doesn't look like there's a

possibility.

The reality is that for no apparent reason, Donald Trump launched these extra tariffs and it was --

GORANI: And he said it was about Pastor Brunson.

QUEST: He said it was about the pastor. But today at the briefing, he seemed to be backing off from that somewhat. Sarah Sanders seemed to be

backing off from that. The reality is -- the reality is the Turks today (INAUDIBLE) had no option but to go back with a quid pro quo.

This has been started to some extent by the U.S. president. And now Turkey has taken it one stage further. Whether or not the president comes back

for a second or third bash will be interesting.

GORANI: The reality is America can and is hurting Turkey. Turkey really can barely make a dent when it comes to the U.S. economy.

QUEST: Yes. But if Turkey is hurting and certainly India hurts and South Africa hurts and before long Southeast Asian countries, the emerging

markets -- the emerging markets, ETF exchange traded fund. The emerging markets ETF is down some 40 percent so far this year. The emerging marks

are on the precipice waiting to see what's going to happen, particularly its interest rates go up in the United States.

GORANI: What I find interesting is -- and tell me how investors are reacting, because the U.S. and Turkey have a very important strategic

military relationship. America uses Incirlik which is a base inside of Turkey to conduct airstrikes in other parts of the Middle East.

They have not leveraged that. So in other words, it tells me, perhaps and we'll see how things develop, that this is a spat that at least maybe even

the leaders are expecting will be contained?

QUEST: Yes, absolutely right. I think that's because -- I think it's absolutely spot on because to allow this dispute to infect the security

alliance, would be to start underpinning NATO even more than what has already happened.

So absolutely there seems to be a view, let's keep security, let's keep defense, let's keep military things just on one side and let's look at this

purely on economic grounds, could that change? Highly possible, likely, probably not.

GORANI: All right. It's all very dangerous though. They all have the potential to spread.

QUEST: Yes, contagion. Look, I wish I had a bowl of water and I could drop a pebble into it, because that would show exactly what we're talking

about and the gash of water all that no.

GORANI: No, let's not go there. NO. We're going to be mopping up the studio for hours. And you're going to be here in this very studio at the

top of the hour with "QUEST MEANS BUSINESS."

QUEST: I am.

GORANI: Always great having you on this show.

QUEST: Sign me out, please.

GORANI: Richard, yes. Great seeing you.

Now, you've heard of snail mails, not like this, however. Ten tons of post has finally made its way into Palestinian areas of the west bank after it

was blocked by Israel for up to eight years. Palestinian officials say the bulk was released in a one-time deal, seeing letters and items like

medication finally on their way. They've been stuck sometimes for two, three, five years.

[15:40:12] And some of it is really just kind of heartbreaking. A note attached to one wheelchair says it was sent from Turkey in 2015, to be

delivered to Gaza. Now, you saw from those images, Palestinian postal workers are on overtime to make sure that the mail finally gets there. I

wonder what it would feed like for someone to get a letter that's seven or eight-years-old.

Don't forget, you can check our interviews and analysis on our show, on our Facebook page, facebook.com/halagoranicnn. And check me out on Twitter,

@HalaGorani.

Still ahead, diversity was the winner in several U.S. races setting the stage for the November elections. We'll see how it was a night of firsts,

just ahead. Stay with us.

(COMMERCIAL BREAK)

GORANI: We have a new development regarding that report on abuse by priests in the U.S. I want to get to a statement from the Pennsylvania

catholic conference. It reads, "We are devastated and outraged by the revelations of terrible sexual abuse crimes committed in the Catholic

Church. The time to discuss legislation will come later. Our focus now is on improving ways that survivors and their families can recover as they

continue through a difficult healing process."

The fate of Donald Trump's former campaign manager, Paul Manafort, will soon be in the hands of a jury. Defense lawyers have wrapped up closing

argument, suggesting that Manafort is the victim of a selective hunt for wrongdoing by special counsel, Robert Mueller.

Manafort's trials stems from the Russia investigation, but focuses on alleged tax evasion. Prosecutors earlier argued that Manafort repeatedly

lied to finance the lavish lifestyle. They're getting a chance for one last rebuttal before the case goes to the jury.

U.S. President Trump is stripping security clearance of one of his most vocal critics, former CIA director, John Brenan. The White House made the

announcement a short time ago. Sarah Sanders read a statement from President Trump listing the reasons he says Brenan is being cut off.

(BEGIN VIDEO CLIP)

SARAH SANDERS, WHITE HOUSE PRESS SECRETARY: First at this point, my administration, any benefits that senior officials might glean from

consultations with Mr. Brennan are now outweighed by the risk posed by his erratic conduct and behavior.

Second, that conduct and behavior has tested and far exceeded the limits of any professional courtesy that may have been due to him.

(END VIDEO CLIP)

GORANI: Brennan has been tweeting blistering criticisms of Mr. Trump, including calling his performance at the Helsinki summit with Vladimir

Putin nothing short of treasonous.

Now to some ground breaking elections in the United States, as voters ushered in set a big first in some primaries yesterday. Christine

Hallquist became the first transgender nominee for governor by a major political party winning Vermont's democratic primary.

[15:45:06] Jahana Hayes could become the first black member of Congress from Connecticut. That's if she defeats her Republican rival in November.

And Ilhan Omar could become the first Somali-American Congress member, after winning a Minnesota democratic primary. She said this to her

supporters.

(BEGIN VIDEO CLIP)

ILHAN OMAR, U.S. HOUSE DEMOCRATIC CANDIDATE: We believe that together, together, we can organize around the policies of hope and make sure and I

believe we have the America we believe in, the America we deserve.

(END VIDEO CLIP)

GORANI: Let's talk more about some of these -- some of these groundbreaking results with Congressional Correspondent, Phil Mattingly.

So, Phil, what does this tell us about what to expect here in November?

PHIL MATTINGLY, CNN CONGRESSIONAL CORRESPONDENT: I think, Hala, when you look at over the course of the primaries, we're kind of coming towards the

end of that process right now. One thing has been clear, it's always a little difficult to pull out trend lines here. But when it comes to

diversity and when it comes to women candidates, there has been a movement towards people running like we've never seen before and not just running

but winning.

If you look at the LGBT candidates across the country, hundreds have won. You have openly gay nominees in the State of Colorado, in the State of

Texas. Obviously, a transgender nominee in the State of Vermont.

From the religious perspective, from the faith perspective, you go from zero female Muslim members of the U.S. House to almost guarantee to be two

by November.

And you just got to look across the board here. And it's interesting. You talk to some of the candidates. A lot of them don't want to make it about

the fact that they're women or making about the fact that they're Muslim. But almost to a person, they will say, it has been a reaction to the

president.

Through President Trump, that's what drove them to run. That's why they're in the races. Will they all win? The answer to that is no, particularly

if you look in Vermont. Phil Scott, the incumbent governor is very popular. But it's very clear that it has been a driving force and it is a

clear shift societally, at least on the political side of things right now.

GORANI: And we heard from Christine Hallquist, who is the first transgender nominee for governor of a major political party. Her

understanding of what these races coming up in November are about. Listen.

(BEGIN VIDEO CLIP)

CHRISTINE HALLQUIST, DEMOCRATIC NOMINEE FOR VERMONT GOVERNOR: We all are working hard every day and I didn't really necessarily think about what it

would look like to win. But it is starting to sink in, the historic significance of this nationwide.

Vermonters have always been a very loving and welcoming state. So it really hasn't necessarily been an issue for Vermonters. But I am

definitely proud and honored to be making history for the nation.

(END VIDEO CLIP)

GORANI: And I wonder if -- I mean, because you still have, obviously, in many parts of the United States, pro-Trump candidates that are expected to

easily win re-election. Are we starting to see a real polarization here where you have these candidates who are maybe have a more sort of Bernie

Sanders-type approach to campaigning, doing well and then on the other end of the spectrum, the more pro-Trump Republican candidates doing well as

well?

MATTINGLY: Yes. State by state, district by district, obviously is not all monolithic. But I do think you make a really interesting point in

terms of the polarization and the parties right now.

Basically, if you are a Republican, you have to be supporting President Trump or you're going to lose your primary. That has been played out over

and over.

We saw it last night in Minnesota where a governor nominee, Tim Pawlenty, a former governor, big money, big name I.D., all of those things. He lost

because he said negative things about President Trump. So that's the Republican side of things.

And then on the democratic side of things, you've seen a clear push on the progressive side. Whether that means different backgrounds, different

faith orientations, there is sexual orientations, or just how they feel about policy issues, you've seen democratic socialists make a big move in

the country as well.

Again, it's not unanimous. It's not homogenous. But it's clear that there are trend lines here that we haven't seen in the past. A better way to put

it. Particularly on the democratic side of things is issues or personal traits that in the past political experts, if you want to call them that

would say that disqualifies you from running. Or you shouldn't even considered getting into this race.

Those were no longer disqualifications. People aren't just running with those qualifications. They're winning with those qualifications. At least

on the primary side.

We'll see how those translate in November. But it is a definite clear shift in terms of how people think about their electorates and how willing

people are and specific types of people are to actually run because they feel like they can make a difference, Hala.

GORANI: Sure. But the most important question for the Democratic Party, in particular, because they control neither House in Congress is whether or

not they can flip the House of Representatives. This is what they want to do. I wonder if anything in the primaries can give us an indication of

whether or not that's a possibility at this stage.

[15:50:05] MATTINGLY: Yes. I mean, I think the biggest thing right now and it's not a direct correlative to the thing. And you can take it from

last night as well, is turnout in the primaries.

And again, it's not a one on one match between what happens in the primary, what happens in November. But if you look at Minnesota or you look at

Wisconsin, two states -- Wisconsin, a state that President Trump won stunningly in 2016. Minnesota, another blue state that President Trump

almost won.

If you look at the democratic primary turnout, 80,000 more Democrats showed up in Wisconsin, 200,000 more Democrats showed up in Minnesota. If you

look across the board special elections, which again, aren't a direct corollary. But you can see the enthusiasm there. That's what Democrats

are holding on to right now.

I think the big question now is in midterm elections, traditionally, historically and, Hala, you know this well, Republicans do better. They do

better in these districts, especially since they currently control them. Their incumbency has advantages.

Will that turnout, will that enthusiasm drive Democrats to the 23 or more seats they need to flip the House? Democratic analysts and political

consultants feel like they're on their way right now. But obviously, Hala, a very long way to go in the next couple of months.

GORANI: All right. Phil Mattingly, thanks so much.

Still ahead, we've heard salacious claims from former reality star and ex- White House aide, Omarosa. Now, a fellow veteran contestant of The Apprentice joins us just after the break to tell us about his interactions

with Donald Trump.

(COMMERCIAL BREAK)

GORANI: Former White House aide, Omarosa Manigault Newman says she will not be silenced. She is facing legal action from Donald Trump's campaign

after writing a searing tell-all book about working for the president. She was also a contestant on Mr. Trump's reality show, "The Apprentice," of

course.

Another former Apprentice contestant is speaking out and he's on our show right now. Surya Yalamanchili wrote a book called "Decoding the Donald."

Thanks for being with us.

How much time did you get to spend with Donald Trump and what did you learn about his character during that time?

SURYA YALAMANCHILI, FORMER "THE APPRENTICE" CONTESTANT: So this was 12 years ago. We spent about six, seven weeks with him while we filmed

Apprentice season six in Los Angeles. And this was actually the same season where he apparently met Karen McDougal and had these liaisons with

Stormy Daniels in California. So it turned out to be one of the more problematic seasons of The Apprentice for him, as far as what we learned

about him.

I had instance towards the ends of it, the live finale where he actually screamed at me and because he did not like that I made a joke in the live

finale. And I think that just shows that he -- his temper, when he doesn't get what he wants or he doesn't like how some things going, he lashes out.

And certainly you can see that on his Twitter stream now. All of the world sees it.

GORANI: Absolutely, all of the world sees it every day and journalists follow these tweets and there are ripple effects every day as well.

But of camera, how was he different then on camera? Because as the president we see him, quote/unquote "performing." He's in front of

cameras. Was he different when the cameras weren't rolling?

[15:55:02] YALAMANCHILI: You know, somewhat shockingly, what you see is what you get with Trump. He loves attention. He loves when people give

him adulation and affection. So as long as you're saying nice things about him and telling him how smart he is or that you want to go work for him.

He loves it as long as the attention is on him. And so very much, the Trump that people see at rallies and different things, that's him.

GORANI: Because some of the video I've seen of him 10, 15 years ago, he sounded calmer, just a little more deliberate in his phrasing. He sounds a

little more disjointed now. Have you noticed the change based on what you see now versus 10 years ago?

YALAMANCHILI: There's no question that he's under a lot more stress now. I think he's used to having a lot of attention. But most of it being

pretty favorable or reasonably favorable for him.

And right now, he's got lots of the world disgusted with him or angry with him. And more than 50 percent of Americans depending on the poll that you

read. And so I think he's feeling under a lot of pressure and certainly the Mueller investigation and the like. I think this is very clearly

somebody who's under pressure.

And like I said, he lashes out when he's under pressure. It's what he did from when I got to observe him up close and one on one. And certainly I

think it's what I see when I watch him on CNN.

GORANI: Yes. Thank you, we've got to leave it there. Surya Yalamanchili who wrote "Decoding the Donald." Thanks for joining us. Really appreciate

it.

YALAMANCHILI: Thank you.

GORANI: We're going to have a lot more after a quick break. We will be -- "QUEST MEANS BUSINESS" is in the house here in London talking about

markets, as well as the impact of that tit for tat tariff spat between Turkey and the United States and the rest of your day's business world.

I'm Hala Gorani. I'll see you the same time, same place tomorrow. Stay with CNN. We'll be right back after a quick break.

(COMMERCIAL BREAK)

(CLOSING BELL RINGING)

[16:00:58] QUEST: Closing bell ringing on Wall Street, Dow's day for the market. They're off the lows of the session. That as you can see. We'll

show you the final numbers. It's not been an encouraged day for the financial system.

END