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Experts Warn Testing Demand Likely to Exceed Capacity; Julie Khani, American Clinical Laboratory Association President Discusses Coronavirus Testing; Mark Zandi, Chief Economist, Moody's Analytics, Discusses New Jobs Report, Economy; Gang of Eight Being Briefed on Russia Bounty Intel; NYT: Afghan Contractor Was Middleman in Russian Bounty Scheme; Houston Rockets' Sefolosha Opts Out of NBA Restart; Washington Mystics' Natasha Cloud Will Skip Upcoming WNBA Season for Social Reform; WNBA's Maya Moore Pauses Her Career for Social Justice. Aired 11:30a-12p ET

Aired July 02, 2020 - 11:30   ET

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


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[11:30:10]

KATE BOLDUAN, CNN ANCHOR: As coronavirus cases surge here in the United States, testing, which the White House task force has said has increased fivefold since April, testing could again become a major issue.

But folks in the medical testing industry are warning once again they might not be able to keep up with the coming demand.

And scenes like this that you're seeing on your screens in Houston are playing out across the country. People waiting for long lines and some waiting for miles to get tested for the virus.

Joining me now is Julie Khani, the president of the American Clinical Laboratory Association, a trade association representing the labs that conduct and process these tests, critical companies in the fight against the coronavirus right now.

Julie, thank you very much for being here.

Talk to me about what you are hearing. How much has demand for tests increased in let's say just the past three weeks?

JULIE KHANI, PRESIDENT, AMERICAN CLINICAL LABORATORY ASSOCIATION: Well, good morning.

And you're right. Laboratories are critical. And speaking for my members, they have dramatically expanded their testing capacity, doubling that capacity just in a matter of weeks.

But even with those expansions, we're seeing steady and significant increases in demand for testing. We're concerned that that demand will exceed our current capacity.

We don't want that to happen. We're doing everything we can. We're working around the clock to expand out testing resources to make sure that everyone who needs a test can get one.

BOLDUAN: When and if testing demand does exceed testing capacity, what happens then, Julie?

KHANI: Well, we want to make sure that everyone is adhering to recommendations by public health officials to wear masks and to be socially distant.

It's also important that we have clear testing guidelines to make sure that those who need the testing most can receive the testing.

We're also calling upon Congress to make sure that they designate funding. There's been the promise of free testing in this nation, but we have concerns about loosening of insurance requirements to cover some types of testing. And Congress needs to step up. We need to make sure that anyone who wants a test they can get one.

BOLDUAN: When will you hit the wall? When do you estimate the industry will be hitting a wall with testing capacity?

KHANI: The testing capacity is very fluid. It depends a lot on supplies. We've heard a lot about supplies over the last three months. And my member laboratories have done a lot of things to expand out those resources, validating different types of swabs, for example.

You've seen laboratories offer at-home specimen collection, which significantly reduces the need for PPE. You've also heard a lot about specimen pooling in recent weeks where -- where we're going to lead with the science.

But we do think that there are opportunities there, particularly in areas of low prevalence, and that will assist in the effort to expand out testing supply --

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BOLDUAN: So you just can't estimate that?

KHANI: There's really no sort of one-size-fits-all solution to testing. We can't guarantee a specific testing mark. Certainly, steady access to supply is important.

What I can tell you is, since early March, my member labs have performed over 16 million tests. In a matter of weeks, again, we double out the capacity. And we're going to keep doing everything that we can to continue to expand that capacity --

BOLDUAN: Does it seem --

KHANI: -- and meet our nation's needs.

BOLDUAN: Does it seem possible to do 50 million tests, process 50 million tests a month because that's what the White House says they will be capable of by the fall?

KHANI: So, again, speaking for my members, at this point, we're performing about 300,000 tests per day. That's compared to about 100,000 tests in April.

We're going to need everyone. Every clinical lab who has the capabilities to perform this test needs to do so, in addition to looking at other innovative ways, looking to things like pooling, point-of-care testing, antigen testing.

And at this point, we're certainly not at the point of hitting those numbers. We'll keep doing our part together.

BOLDUAN: Julie Khani, thank you for your time.

[11:34:48]

Coming up next for us, stocks soar after the positive jobs report, but how much do the numbers reflect reality?

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BOLDUAN: Big hiring. That is the headline on the economy this morning. The June jobs report out today showing that 4.1 million jobs were added last month with states opening up and people getting back to work. The unemployment rate then fell to 11.1 percent, better, but that is relative now, of course.

[11:40:05]

And still, 1.4 million people filed for unemployment insurance last week, the 15th straight week those numbers have been over one million.

Joining me right now is chief economist at Moody's analytics, Mark Zandi.

Great to see you, Mark.

What do you think of this jobs report?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: A good report, better than I expected. I expected a job gain of three million, and we got five million. A lot of the job gains were in industries that got nailed by the pandemic, leisure, hospitality, retail. So all good news.

However, you know, the pandemic pushed the economy into a very deep hole. And even with the good numbers, we've got a long way before we crawl out of the hole.

And given the re-intensification of the virus across many parts of the country, obviously, the risks are pretty high that we might slip back.

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ZANDI: So good news but we've got a long way to go.

BOLDUAN: That's what I was going to ask you. The report covers through June 12th, which is just before these surges were really breaking out that we're seeing now. Many states now slowing plans of reopening or reversing course.

What impact do you think the new wave of spikes will have on whatever economic recovery was starting?

ZANDI: Well, not good. You know, clearly, we've got businesses that will have to close again. And then we have a lot of other businesses that are going to remain very, very cautious.

I mean, now they realize that this pandemic is a problem, and it's not going to go away until we get a vaccine or effective therapy.

And the uncertainty of that, I think, makes businesses just very -- sit on their hands and be very cautious. So this is a real threat, a real risk.

It really does put pressure increased pressure on lawmakers, the Trump administration and Congress to come together to provide more fiscal support.

Because, as you know, Kate, all of the support that they have provided to date runs are out pretty soon. And given this re-intensification of the virus and re-closings of businesses, and without that help, the economy will be in trouble.

BOLDUAN: Yes. You've told me before that a second wave that we're looking at, fearing, potentially, in the fall, could be catastrophic to the economy.

Would a second bump within the first wave do the same?

ZANDI: Yes, potentially. I mean, this is feels like, you know, this is -- Dr. Fauci is right. And if we get 100,000 infections per day, I think that that would be significant and sufficient enough to really push this economy under.

I mean, we're -- it's not only in the states that are feeling the infections rise. You know, Florida and Texas and California, they are clearly backtracking here.

But it's other parts of the country. I mean, I live in the northeast. I live in suburban Philly. I just learned that New Hersey is no longer going to allow people to go into restaurants, indoor dining. So the nervousness is all across the country and the impacts will be broad- based.

So, yes, I think if the infections continue to rise like they have over the last couple or next couple of three weeks, the risk to this recovery are quite significant.

BOLDUAN: No kidding.

Always great to have your perspective, Mark. Thank you so much.

ZANDI: Sure.

BOLDUAN: Coming up for us, top members of Congress are getting briefed right now on the intelligence that Russia offered bounties for killing U.S. Troops in Afghanistan. And a new report identifying a possible middleman in this plot.

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[11:48:01]

BOLDUAN: Behind closes doors on Capitol Hill right now, the Gang of Eight is getting briefed -- getting a briefing on the intelligence report that has rocked Washington and beyond. Russia offering bounties to the Taliban for attacking and killing U.S. troops serving in Afghanistan.

Leading the briefing, CIA Director Gina Haspel, the new director of National Intelligence and the NSA director.

While President Trump continues to say that he doesn't believe the intelligence assessment and is also calling it a hoax, the "New York Times" reports new and extremely specific details about what the intelligence included. An Afghan businessman serving as a middleman tasked with passing reward money from Russia to Taliban fighters, reportedly, up to $100,000 for every U.S. soldier killed.

CNN congressional reporter, Lauren Fox, is on Capitol Hill and CNN Pentagon reporter, Ryan Browne, is also here.

Lauren, let me start with you.

What are you hearing about this briefing going on?

LAUREN FOX, CNN CONGRESSIONAL REPORTER: Certainly, this isn't the first briefing on Capitol Hill this week, Kate, but it is the highest- level briefings that anyone has received on Capitol Hill yet.

And that's not just because of who is going to be in this briefing. The officials that are part of the Gang of Eight include Nancy Pelosi, the speaker of the House, as well as Majority Leader Mitch McConnell and top officials on both the House and Senate Intelligence Committees.

But it also has to do with the briefers themselves. This is a wide array of intelligence agency officials, including CIA Director Gina Haspel, who is someone that lawmakers have wanted to hear from all week.

But you can expert that Democrats and Republicans, behind closed doors, are going to have different kinds of questions. We know Democrats have publicly been calling for who knew what when and why wasn't the president verbally briefed on this intelligence if that was the case.

Republicans, meanwhile, will be looking for any contradictory evidence or intelligence between the different agencies.

When I talked to Senator Roy Blunt, who is a member of the Intelligence Committee, coming out of their briefing yesterday, he said he had seen contradictory evidence and intelligence.

[11:50:04]

So those are the two different focuses of both the Republicans and Democrats going into this briefing this morning -- Kate?

BOLDUAN: Ryan, the "New York Times" report of the Afghan man, he was named in the intelligence reports and confirmed by Afghan officials, according to the "New York Times." Talk to us. Tell us more about his role.

RYAN BROWNE, CNN PENTAGON REPORTER: Kate, this "New York Times" offers a very deep level of detail about exactly how this supposed bounty program worked.

They identify this businessman, this Afghan businessman based in the country's north, who had connections to the black market, connections to various enterprises.

But apparently, he was the middleman here in this program. Russian agents paid him the money, who he then would reach out to the militant groups, many of them Taliban connected, offering reportedly bounties of $100,000 per U.S. or coalition soldier killed in these attacks. This is a very deep level of detail.

We know from our sources that much of the information in this intelligence report was gained from interrogations, from intercepts. And the "New York Times" really laying out how this worked.

Now, one of the things the report did say is that the middleman, the Afghan, and the U.S. government attempted to capture him in a series of raids but he was able to escape, reportedly, to Russia so he was unable to be detained.

However, according to the report, cash and several of his associates were captured during those raids.

BOLDUAN: Yes. This is a really amazing reporting.

Great to see you, Ryan. Thank you.

Lauren, thanks so much.

Much more to come, potentially, coming out of the briefing we're hearing that we've learned is ongoing.

A quick programming note. Don Lemon and Dana Bash will be hosting CNN's "FOURTH OF JULY IN AMERICA," a special evening of fireworks and an all-star lineup. It all begins at 8:00 p.m. Eastern on Saturday.

Still ahead for us, though, sports fans across the country might be ready for professional sports to kick into gear but not all of the athletes are on board. Why some athletes are opting out.

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[11:56:58]

BOLDUAN: The NBA is on track to resume games at the end of this month but not all the players are on board. For one veteran, the risks surrounding the COVID crisis have him opting out of the season.

CNN's Coy Wire has much more on this.

Coy, training camps I think are due to start next week in Orlando. What are hearing about all of this?

COY WIRE, CNN SPORTS ANCHOR: That's right, Kate. I talked to Houston Rockets player, Thabo Sefolosha last night for about 20 minutes. He's the latest on this growing list of NBA players refusing to play when the season resumes due to coronavirus concerns.

He said this was a really tough decision for him, Kate. He said he made a commitment to help the Rockets make a run at the title this year. But he has two daughters, 11 and 12 years old. And he doesn't want to leave his family during these times.

There was a talk with his wife that ultimately led to his decision. She saw that he was stressing and she said you're putting yourself in harm's way and maybe it is not necessary.

Still though, Kate, NBA Commissioner Adam Silver, two days ago, defending the league's restart plans, saying it could be a model for other businesses.

Sefolosha applauded the creativity and the efforts to keep players safe. He doesn't see how people won't get sick even in that bubble environment.

Major League Soccer just a week away from starting the month-long tournament, already in the bubble at Disney in Florida. Six players FC Dallas players tested positive for coronavirus. They're self-isolating at the resort. The rest of the team's in quarantine, too, waiting for test results.

This could be a glimpse, Kate, of what every league might face even after the seasons get started.

BOLDUAN: It is tough.

COVID isn't the only reason, Coy, that some athletes sit out these new abbreviated seasons. There's a growing number of athletes we're hearing are sitting out to focus on social justice as well.

WIRE: Yes, some athletes think sports might be a distraction from what they see at this small window in time where they can use their platforms to make change.

Natasha Cloud, a woman on a mission. She is skipping the upcoming WNBA season to fight for social reform. She tells CNN that true activism, Kate, has to go beyond just T-shirts and taking down statues. Here she is.

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NATASHA CLOUD, WASHINGTON MYSTICS WNBA PLAYER: Wearing a T-shirt is not enough. Wearing a T-shirt saying Black Lives Matter is not enough for the NBA who stole the WNBA's idea of putting Black Lives Matter on the court is not enough.

And so, not only with our leagues, but America as a whole, do not be distracted by the crumbs that people are throwing at you. T-shirts and things on the court are crumbs. Taking down statues of racist slave owners that's crumbs.

(END VIDEO CLIP)

WIRE: She says the time is now, Kate.

Maya Moore, one of the greatest to play her sport, a four-time champ, six-time all-star, she walked away from her sport in her prime last year to help Jonathan Irons, a man convicted of a home invasion and a shooting in 1998. He insisted he wasn't there. He was still set to serve a 50-year prison sentence.

But yesterday, there he was walking out of Jefferson County Correctional Center in Missouri. And Maya Moore was there, wearing a mask, greeting him with a hug. She helped him get his conviction overturned. New evidence was found in the case.