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At This Hour

U.S. Adds 467,000 Jobs In January Despite Omicron Surge; Putin And Xi Show United Front In China Amid Ukraine Crisis; U.S. Says Russia Planning To Fabricate Pretext To Invade Ukraine; Beijing Games Begin Amid Diplomatic Boycott And COVID Restrictions. Aired 11-11:30a ET

Aired February 04, 2022 - 11:00   ET

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

[11:00:00]

JIM SCIUTTO, CNN ANCHOR: Yes, busy news week. We do hope you have a good weekend. Thanks so much for joining us today. I'm Jim Sciutto.

BIANNA GOLODRYGA, CNN ANCHOR: And I'm Bianna Golodryga. "AT THIS HOUR" with Kate Bolduan starts right now.

KATE BOLDUAN, CNN ANCHOR: Hello, everyone, I'm Kate Baldwin. We begin this hour with breaking news. We're waiting to hear from President Biden, at any moment after the January jobs report just crushed all expectations. U.S. economy added 467,000 new jobs last month far better than estimates and despite the Omicron surge. The unemployment rate ticked up slightly to 4 percent.

Joining me now is CNN Chief Business Correspondent Christine Romans with a look at a deeper look at these jobs numbers as we're waiting to hear from the President. Christine, what's sticking out to you?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: You know, this was a big surprise. And I think it was even a big surprise for the White House. What sticks out to me is that the survey week for the government came when they were maybe 12 million people who were out sick or taking care of a sick relative or a kid out of school or quarantining. And that despite that disruption, you had an American job market that was powering ahead.

The story here is that companies are hungry to hire workers. There aren't enough workers for all of the open jobs. When you look at the year, Kate, really important to focus on the trend. 6.6 million jobs added in the first 12 months of the Biden administration. And the makeup of that job creation is changing a bit that would, by the way, be the strongest first 12 months of any presidency back to the great depression.

But the makeup changed, it was much stronger at the end of the year than we thought. Remember, there was a disappointing 199,000 jobs, net new jobs created in December. Well, the government has revised that sharply higher to more than 500,000 jobs in December.

In November, a paltry 249,000 jobs added back into the economy. It's almost triple that. So you can see these revisions show. The government is having -- economist having difficulty capturing just how this churn is is going on in the labor market. And it is much stronger than we thought.

Wages, 5.7 percent growth there for wages. For many people, you know, inflation is eating up those wage gains. But you saw big gains and leisure and hospitality workers and for that sector, in particular, they're getting raises big enough to offset the inflation increases.

So that's an interesting part of the economy to watch here. People who are working in bars and restaurants and hotels, companies need them so badly. They're giving them good pay raises.

BOLDUAN: This is really interesting. Christine, thank you for that.

ROMANS: You're welcome.

BOLDUAN: Let's get back over to the White House right now. CNN's John Harwood is standing by. John, as Christine's laying out, there's a lot for the President to discuss here. But what are you expecting to hear from him?

JOHN HARWOOD, CNN WHITE HOUSE CORRESPONDENT: Well, we expect him to tout the same thing he touted in a tweet a while ago, which is the number that Christine mentioned, 6.6 million new jobs over the last 12 months since he's been in office more than any president in recorded history in terms of job growth. Now, obviously, that's a little bit misleading in the sense that we're bouncing back from a pandemic. And it's not like we were on a steady baseline and you're raising the level.

But the important news is the economy is bouncing back. This seems to be the economy shrugging off Omicron that's good news, suggest a move in the direction of normalcy later this year. And, of course, the push and pull of this number is that inflation is partly a result of this hot job market not for everyone, as Christine said.

People at the bottom coming out ahead. That's good news for them. Tempers income inequality a little bit.

On the other hand, those inflation pressures are a huge political problem for the administration, a problem for the economy, if they become entrenched long term. Economists are projecting. Inflation will temper toward the end of the year and be much lower than it was last year. But that's still ahead of us.

Right now, though, the President's going to celebrate these jobs numbers. And it's clear that if you want a job in the United States right now, you can get one because as Christine just outlined, there are more jobs available right now than there are workers seeking jobs.

BOLDUAN: Yes. Let me bring Christine actually back in, John, to this conversation. Because you often talk about really eloquently, Christine, this disconnect between --

ROMANS: Yes.

BOLDUAN: -- how the economy looks by the numbers, and how it feels, how people say it feels to them.

ROMANS: And I feel as though it's COVID exhaustion and inflation. These are two things that just have really ground down optimism, and ground down people's psychology in this country right now. You know, and I don't know what the fix is for it exactly. But when you look at the labor market, we've talked about the great resignation. I heard it yesterday described as the great upgrade really.

You've got millions of people who quit their jobs last year for a better job or a better life balance situation or a completely new industry. So there is -- I keep using this word churn, Kate -- there's this churn happening in the labor market. That has never happened since I've been covering the economy, which makes it difficult to capture each month sort of a snapshot of what's happening overall. But I do know that the polls, the sentiment polls don't reflect what John and I think are seeing in these numbers month after month.

[11:05:11]

BOLDUAN: Christine, thank you. John, thank you so much.

Joining me now for more on this is Commerce Secretary Gina Raimondo. Secretary, thank you for being here. I mean, no one expected the report to look like this. What does it say to you?

GINA RAIMONDO, U.S. COMMERCE SECRETARY: It says what we know, which is that we have a very strong economy right now. The past year has been -- we've broken all kinds of records in terms of job creation, wage increases. It's really what we've been saying.

I mean, America is still the only economy in the world that is stronger now than pre-pandemic. And you know, President Biden's leadership on the economy has been extraordinary. The moves he's made have clearly work and what we've created over 6.5 million jobs.

BOLDUAN: One number -- there are a lot of numbers that jumped out, but one number that also jumps out is that over 54,000 jobs were added in transportation and warehousing, double from December. Is that a signal that the big problems and concerns and fears with a supply chain, is that a signal it's getting better?

RAIMONDO: Yes, I think it is. We see that, we hear that, we see that in the data. You know, congestion is down at ports. There are more trucks on the road, we're training more truckers. But also, as I talk to business leaders of small and large businesses, they will tell you, things are getting better.

It is still not where we need to be. And I'm sure you see that in your own life when you're trying to buy things, order things. But it is much better than it was and the fact that we now have, you know, more people in logistic, more truck drivers, more trucks on the road, you're just going to continue to see improvement.

BOLDUAN: Would you say as with what you're looking at that this is an economy now moving past the pandemic? RAIMONDO: Yes, yes, absolutely. Listen, I think COVID is obviously still here, people are still calling out sick. As you were saying earlier, a lot of people resigned last year, it remains to be seen how many of them will come back and when. So I don't think we are, you know, fully post-pandemic.

But I would say certainly the worst is behind us and with the supply chains, for example, the worst is definitely behind us. And we're just going to continue to make steady progress as we go forward.

BOLDUAN: We've got to talk about inflation, of course. I want to play for you how Mark Zandi of Moody's Analytics put it this morning.

(BEGIN VIDEO CLIP)

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: I think that's really what's stinging people. I mean, the last time we saw inflation like this was 40 years ago, it's two generations ago. So a lot of Americans just have never seen anything like this. And it's really hurts.

And Christine is actually up to $250 a month more now to buy the same kinds of goods and services folks are buying a year ago. So really stings.

(END VIDEO CLIP)

BOLDUAN: And this is a real disconnect. I think where the disconnect is. What the numbers show is not necessarily how people say they feel about the economy. What do you -- what can you do about that?

RAIMONDO: Yes. So first, I think it's more than just inflation. These past two years due to COVID have been brutal for people, everyone. I'm sure you see it in your own life, in your own family. People are tired, they're exhausted, they're depressed. COVID still around, we're still not back to normal. I do think that that is a real factor in this.

With respect to inflation, he's right. I'm old enough to remember meat shortage and the gas prices being high. And we haven't seen anything since it will get better. You know, want to today, for example, which is the question, what can we do today. Congress is taking a vote as we speak, the CHIPS Act.

A third of inflation is being driven by car prices being so high. Why? We don't have enough semiconductor chips. So much of inflation is being driven by the supply chain disruptions that you say. Much of it is being driven by labor shortages, which is why we're trying to get affordable childcare to every child.

So, you know, moms and dads can go back to work. So we need to expand production. You're making investments that expand production. So demand gets, excuse me, supply matches demand. We need to expand the labor force. And we really need to focus on this chip shortage.

BOLDUAN: So there's also --

RAIMONDO: And also --

BOLDUAN: Oh go ahead, sorry.

RAIMONDO: I'm sorry. Of course, the Fed has the tools to deal with inflation. I mean, President Biden has been clear with us, his team, that we need to use every tool in our toolbox and be as aggressive as possible to deal with inflation because we know it's hard on people. But the Fed has the biggest tools and its toolbox to deal with inflation that's why we have an independent Fed and I expect they will be acting and that will certainly help manage inflation.

[11:10:14]

Secretary, thank you for coming on. I really appreciate it.

RAIMONDO: Thanks.

BOLDUAN: As you can see the podium right there on the other side of your screen, we are waiting standing by right now to hear from President Biden his take on this job report. What he says about the state of the economy and the recovery from the pandemic. We're going to bring that to you when it happens.

Coming up still also for us, Russia's Putin and China's Xi showing a united front in Beijing. What they are saying about the escalating crisis with Ukraine. That's next.

(COMMERCIAL BREAK)

[11:15:07]

BOLDUAN: Developing this morning, Vladimir Putin and Chinese leader Xi Jinping showing a united front in Beijing, shoulder to shoulder and united in opposition of expanding NATO as the Olympic Games begin. This show of solidarity comes as tensions with the West worsen, and more than 100,000 Russian troops are now positioned near Ukraine's border.

CNN Selina Wang is live from Beijing with more for us. Quite a photo op, Selina, but what did the leader say?

SELINA WANG, CNN INTERNATIONAL CORRESPONDENT: Yes, Kate, quite the photo op, indeed. And Putin was clearly the guest of honor here. Putin and Xi they had one on one lunch together bilateral talks, and then they attended the opening ceremony show together. And they released a joint statement saying that they oppose NATO expansion, that they oppose what they were calling NATO's cold war mentality and accused the U.S. and the west of stoking instability.

This is just a further sign of the strengthening ties between China and Russia economically, on trade, on energy, as well as in a diplomatic front. And it comes at such an important time for Russia at a time when they are engaged in a diplomatic showdown with the West over Ukraine and China expressing sympathy to what they've called legitimate security concerns. But important to note, Kate, here that China is in a delicate position because they want to maintain these strong ties with Russia. But at the same time, experts say they do not want to see Ukraine-Russia conflict, they would prefer stability. Now Putin there at the opening ceremony joined by a list of VIPs that's heavy on autocratic and strong mid leaders, leaders like Crown Prince, Saudi Arabia, as well as the leaders of Egypt, Turkmenistan, and Tajikistan.

Quite a far cry from 2008 when we saw George W. Bush in the stance with Chinese leaders. Definitely a very different picture now, Kate.

BOLDUAN: Absolutely. Selina, thank you so much.

Meantime, the Kremlin is denying reports that the U.S. -- that U.S. intelligence says Russia was planning to stage a fake Ukrainian attack as a pretext to invade Ukraine again. CNN's Nic Robertson has this live in Moscow for us. Nic, this is a serious claim. What are you hearing there?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, the foreign minister here knocking it down, calling it delusional, not the first he says, of course, we've been taught told about the possibility of false flag operations before the British government also saying that the Kremlin was going to install a puppet government in Ukraine once they invaded and took control of the country. This isn't keeping the Kremlin's response in keeping with everything that they've said until now.

The foreign minister saying that as we see more and more of these, it becomes obvious to everyone what's going on. But the Pentagon laying out what they have.

(BEGIN VIDEO CLIP)

JOHN KIRBY, PENTAGON SPOKESMAN: As part of this fake attack, we believe that Russia would produce a very graphic propaganda video, which would include corpses and actors that would be depicting mourners and images of destroyed locations as well as military equipment at the hands of Ukraine or the West.

(END VIDEO CLIP)

ROBERTSON: So while Russia is continuing its build up around the borders of Ukraine and the north, the east and the south on state media here, what are they doing? They're trolling the State Department spokesman Ned Price when he was asked the question by journalists, can you give us more details that underpin what you're saying about this false flag operation? So it's getting heavy attention here in the media in Russia. Kate?

BOLDUAN: Nic, thank you so much for that.

Joining me now is Retired Army Brigadier General Mark Kimmitt. He's a former Assistant Secretary of State for Political Military Affairs. Also with us is Julian Barnes, he's a National Security Reporter with The New York Times who first reported on the alleged Russian plot. Julian, can you tell us more about what you've learned about this alleged plot? Do you -- and kind of going off of what Nic was saying there, do you expect the administration is going to release evidence of this because they are getting questions about it?

JULIAN BARNES, NATIONAL SECURITY REPORTER, THE NEW YORK TIMES: Yes. It is a good question, but what it's really hard here is that when you have an intelligence matter to release this sort of hardcore evidence, a PowerPoint of this or an e-mail message about the planning of this, any sort of sort of concrete evidence would kind of -- as were how the U.S. collected this. And we can see we're kind of in an information battle between the United States and Russia.

And there's a lot of this information being released. The U.S. is trying to expose the plots. And if they showed too much evidence, then their sources would dry up, or at least that's what they argue.

BOLDUAN: It's interesting and also a valid point. I mean, General, what is your reaction to this?

[11:20:05]

BRIG. GENERAL MARK KIMMITT (RET.), FMR. ASST. SECRETARY OF STATE OF POLITICAL-MILITARY AFFAIRS: Well I can't say I'm surprised. The Russians are pretty clever in their tactics that they use. They've used the combination of cyberattacks, mercenary forces, what we call the little green men. They've been disruptive in the political process inside of Ukraine. They've masked huge amounts of forces on the borders, and whether they intend to use them or not, the days and weeks to come will tell. But I wouldn't be surprised at all that they would employ this notion of false flag operations as part of their portfolio of tactics that they're going to use.

BOLDUAN: Now, in general, Vladimir Putin and Xi Jinping, they're making quite a show of standing shoulder to shoulder right now. How real do you think that alliance is? And what do you think it means to this ongoing crisis in Ukraine, as we watch it kind of play out today?

KIMMITT: Well, as it's often been said, countries don't have friends. They have interests. And at this point in time, for a number of reasons, Xi and Putin do have common interests. But I think Nic Robertson was right. The fact remains that number one, this is against the Chinese policy of non-interference. And number two, the Chinese generally don't like to see instability and conflict, for many reasons, not the least being that it interrupts their business interests.

BOLDUAN: Kind of looking at this past week, Julian, the administration very publicly said that it was no longer going to use the word imminent in describing the possibility of Russia reinvasion of Ukraine, if you will. And there's also a lot of debate over whether Putin has made up his mind or not of what he wants to do. How does this disclosure this -- your reporting about this possible fabricated video, this false flag plot? How do you think this disclosure plays into this? BARNES: Well, I think that's a perceptive question here. Because what we do know is that Russia is planning for the possibility of an invasion. We do know that they are using disinformation now to try to undermine the Ukrainian government and build support within Russia. But what we don't know is the intentions of Vladimir Putin. That's very hard for any outside analysts, any intelligence official to really ascertain.

So is this a real big threat by Putin that he intends to back down from, or are we going to see a very bloody invasion? And no one can tell you for sure. People can make educated guesses. People have analytical conclusions, but nobody knows except for Putin.

BOLDUAN: All right, that is true. It's good to see you, Julian. Thank you, General, thank you as always.

Coming up for us, let the games begin. The Beijing Winter Olympics are underway despite the pandemic and a diplomatic boycott. That's next.

(COMMERCIAL BREAK)

[11:28:06]

BOLDUAN: An Olympic Games like no other officially underway in Beijing. The opening ceremony kicking off two weeks of competition against a complicated geopolitical backdrop. With the coronavirus pandemic still raging, China is restricting athletes in an Olympic bubble and limiting the number of spectators at venues. And then there is also a diplomatic boycott, of course, by the U.S. and several others over China's record of human rights abuses.

Joining me now on the phone from Beijing is CNN Sports Analyst Christine Brennan. She's also a USA Today sports columnist. And also with us is CNN Contributor Patrick McEnroe, an ESPN commentator, and he served as the coach of the U.S. men's tennis team at the 2004 Olympic Games.

Christine, let me start with you. The opening ceremonies by design, of course, are a celebration, but this is an Olympics really like no other. How do you describe that opening ceremonies this time around?

CHRISTINE BRENNAN, CNN SPORTS ANALYST (via telephone): Yes, Kate, there were certainly fewer -- it's great to be with you, of course -- there's fewer athletes there. Nathan Chen, for example, the figure skaters that he didn't want to be anywhere near the opening ceremony, just because of the close proximity with other athletes. The fear of COVID and the concerns with the masks that everyone's wearing, of course, the positive COVID test and you're in quarantine. And there goes your Olympic dream.

So fewer spectators, the same reason of course COVID. If you were a diplomat, because you mentioned the boycott led by President Biden and other nations. And it was, to me, it was a grand illusion. You know, they throw a great party here. Second Olympics, they've had that 2008 Summer Games. Now the first city ever to host both this summer and a Winter Olympics 14 years later. But the issues of genocide, freedom of speech, human rights abuses, those issues, of course, are just covered over at a time like this. And obviously, as a journalist, I think it's so important to bring them up. And so this grand, glorious celebration of Chinese culture, there are certainly many, many questions that come with that.

BOLDUAN: You're on the ground in Beijing, Christine.