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FBI Finds Chinese-Made Equipment Could Disrupt U.S. Nuclear Communications; Russia, Turkey To Escort Grain Exports After Odessa Strike; Consequential Week For U.S. Economy As Recession Fears Rise. Aired 11:30a-12p ET

Aired July 25, 2022 - 11:30   ET

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

[11:30:00]

DR. MARGARET HARRIS, SPOKESPERSON, WORLD HEALTH ORGANIZATION: We've known monkeypox for many, many years, we first learned about it in the human population in the 1970s, and we first identified it back in 1958 in monkeys. That's why it's called monkeypox. But it's changed. It's now moved much more widely. Before, it stayed in a few countries in Africa. Now, it's moved very widely to more than 70 countries and we have large numbers of cases. So that was an extraordinary event.

And is it something we need the international community to work together? That was one of the big issues for us, and indeed, we do. We -- so we're not saying panic. We're not saying, you know carry on as if it's the end of the world. We're saying, let's work together. We've got some tools, we need more tools, let's work together to put a stop to it.

KATE BOLDUAN, CNN ANCHOR: And monkey -- as I mentioned, monkeypox is -- has yet to be declared -- has not yet been declared a public health emergency in the United States. Do you think it should be?

HARRIS: So, we've made recommendations when we declared it as a public health emergency of international concern to the various all the countries that are what we call states parties, and the United States fits into a group two, which are countries with recently important cases and human to human transmission.

And what we're asking of those countries is to implement response actions with the goal of stopping human-to-human transmission, and really empowering the affected communities listening to them, and taking leadership from asking them to lead on this. And also protecting vulnerable groups like women, immunosuppressed individuals, pregnant women, children. Now how you do that is up to each country but that's what we're recommending.

BOLDUAN: One important thing apart about all this is the ability to gather and share data. In the United States, the CDC is saying right now that they don't have enough data to forecast essentially, where this is headed. A CDC spokesperson telling CNN, right now, we do not have enough detailed case data to develop robust estimates. How big of a problem is that?

HARRIS: That's a very important issue and that's an important issue around the world. And that is actually another reason for us declaring a public health emergency of international concern so we can help. We're helping countries around the world with -- for instance, with the testing, with providing the PCR, with providing the primer, explain the other tools that they need to do that. But also, this means you have to work with affected people. And because it's a -- it's a physical -- quite a disease, it's caused by close physical contact, that will take some sensitive activity and decency and empathy to get that information.

BOLDUAN: Yes.

HARRIS: And as we've said over and over again, this really needs to be driven by the effective -- affected communities. If you stigmatize people, if you make people feel in some way, if you do what we have seen, unfortunately, circulating on social media, people will not wish to come forward with information.

BOLDUAN: And so it's important. And you have to be able to be delicate but also effective. It's clearly doable. It just takes leadership to do so. It's good to see you, Dr. Harris, thank you very much for coming on.

HARRIS: Thank you.

BOLDUAN: Coming up for us, new accusations of forced deportations of Ukrainian children to Russia. The chairman of the House Armed Services Committee just returned from a trip to Ukraine. He's our guest next.

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[11:37:24]

BOLDUAN: Now to CNN exclusive. An FBI investigation is raising alarms and investigation into Chinese tech giant Huawei and its equipment here in the United States equipment installed near military installations. Sources telling CNN that it could disrupt highly restricted Defense Department communications including airwaves used by U.S. Strategic Command which oversees, well, a lot including the country's nuclear arsenal. CNN cybersecurity reporter Sean Lyngaas is here now with more on this reporting. Sean, this report it's eye- opening. What more can you tell us?

SEAN LYNGAAS, CNN CYBERSECURITY REPORTER: Right, Kate. Well, the U.S. government has tried to go after Huawei for years, but we're finding it's a lot harder to extricate the equipment from networks you know much easier said than done. The U.S. government has already banned the use of Huawei equipment on U.S. government networks. But now going into America's Heartland, the technology is already out there, a lot of rural telecommunications providers.

My colleague, Katie Bo Lillis, found that the FBI has investigated and determined that Huawei equipment can indeed disrupt communications used by the U.S. military. So it's an eye-opening investigation, indeed. It goes to show that the issue with Huawei is far from over. And it's been an issue in terms of Huawei offering cheaper equipment throughout the developing world, to countries that maybe can't afford it, but here in the U.S., that cost-effectiveness is also a telling and it's something that U.S. telecom operators are having to deal with.

BOLDUAN: Sean, thank you so much for that reporting. I really appreciate it. So, Russia and Turkey, they now say they will use military naval forces to escort -- to try to escort critical Ukrainian grain supplies through the Black Sea. It comes as Russia strikes the city of Odessa -- the key port city of Odessa and that has threatened to upend this very important deal struck last week over restarting these grain exports, an effort to stave off a global food shortage. CNN's Nic Robertson has more.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Kate, Ukrainian officials are telling us despite Russia firing missiles into the port city of Odessa on Saturday, just hours after signing that UN-brokered grain export deal, that Ukraine is still committed to seeing that deal work. They're sending representatives to Istanbul where the Joint Coordination Center is going to be established. They believe that the grain that can begin to be exported in the coming days, they hope it's days, and they hope to have grain on the move by the end of the week.

[11:40:03]

But they are concerned about the language that they're hearing from Russian officials. Russia's Foreign Minister Sergey Lavrov has said Russia has a right to be able to strike the port of Odessa. He also said that Russian warships will be able to escort these cargo vessels as they pass down the Black Sea. That is not written into the UN agreement. And the infrastructure minister here who signed that deal in Istanbul at the weekend tells me that just isn't going to happen.

(BEGIN VIDEO CLIP)

OLEKSANDR KUBRAKOV, UKRAINIAN INFRASTRUCTURE MINISTER: So we won't allow to do this. Our territorial waters and our support only Ukraine and Ukrainian Navy will be -- will be there. So if we're talking about like inspections and all these issues that will be in near Turkey, it will be near Bosphorus, and we will be leaded by Turkey and by United Nation.

ROBERTSON: So no Russian ships escorting the convoys anywhere along the convoy ships?

KUBRAKOV: No way, at all in this process.

(END VIDEO CLIP)

ROBERTSON: And I asked him as well why he thought Russia had fired the missiles into the port of Odessa, he said it was just a powerplay Russia trying to show that they're in command that they're in control of the whole situation here. The plan B that Ukraine has to get grain out of the country by cargo vessel along the Danube River, by train, or by truck overland, those are still in play. But the real effort here, he says, is to get that UN grain deal up and running. And that could mean that over the next few weeks, Ukraine could begin to earn that estimated $1 billion a month for all the grain it hopes to export, Kate.

BOLDUAN: Nic, thank you so much for that. Joining me right now is the chairman of the House Armed Services Committee, Congressman Adam Smith. He just led a congressional delegation to Ukraine this weekend. Chairman Smith, thank you so much for being here. You just got back from your trip, you met with President Zelenskyy. I was watching your Twitter feed as you're putting out information and pictures about your trip, what did you see? What is your biggest takeaway from that visit?

REP. ADAM SMITH (D-WA): Well, the resiliency of Ukraine. I mean, that's the biggest takeaway, the ability for them to keep their country running and functioning and dealing with all the challenges in the midst of a war. When we were in Kyiv for substantial portions of walking around, you wouldn't have known that they were at war. They figured out how to make the country run, how to keep the rail systems running, how to keep their hospitals running to deal with the wounded. So they have been incredibly resilient.

And then also they took us to some of the sites of the Russian attempt to take Kyiv up to Bucha to the sites of the mass graves. They have an incredibly moving memorial that shows pictures of the executions of civilians in the mass graves and what the Russians did when they came in. So, you know, they are incredibly resilient and also very appreciative of the help that they're getting from the U.S. and from other allies that are helping them protect their country from this Russian invasion.

BOLDUAN: What do they need? What was the ask, Chairman?

SMITH: Well, they need more of what we're giving them basically. They have a couple of asks for some other systems, but mostly the HIMARS systems, the long-range artillery fires, the 777 artillery fires have been enormously helpful. Just in the last month, we've seen the success of those systems. They want more of it. And we -- I met with the Department of Defense this morning, Deputy Secretary of Defense Kathleen Hicks, and Colin Cole, who's the undersecretary for policy, we're committed to giving them that assistance.

And what people need to understand is we all want peace, the Ukrainians want peace, and President Zelenskyy wants it as well. The Russians are not going to allow that to happen until they are stopped until they are convinced that they cannot succeed. Putin wants to grind out a slow, brutal victory. We have to help Ukraine stop that, reverse it, and get to peace for the sake of Ukraine, but also for the sake of the world. You mentioned the grain exports, how important it is to get access to that food worldwide, but also to make sure that Russia can't keep doing this to other countries, that sovereign nations can be protected. It's enormously important that we continue to support Ukraine.

BOLDUAN: On the grand crisis. I mean, Nic Robertson was just laying it out. I mean, indirectly to what you just said, do you trust or have confidence that this deal with the Russians will actually hold? I mean, striking the Odessa -- the port -- the port in Odessa is -- I mean, it's like, pretty clear what the intentions are. SMITH: Yes. No, I mean, we were in Poland first and we were there when the news broke that this deal had been reached, we were meeting with some U.S. embassy officials who are assigned to Kyiv but they're working out of Poland. And then by the time we got into Kyiv, the Russians had attacked Odessa. So there's no way anyone would trust the Russians, but President Zelenskyy made it clear this is so important having gotten this agreement. They have to try to get the grain out, both for their sake and also for the sake of the world. So they're going to keep moving forward knowing that they cannot trust the Russians on this deal or anything else.

[11:45:01]

BOLDUAN: No kidding. Mr. Chairman, a top State Department official said Friday that up to 1000 Ukrainian children have been stolen, kidnapped, and given to Russian families. Ukraine's ambassador to the U.S. spoke to this yesterday. Let me play this.

(BEGIN VIDEO CLIP)

OKSANA MARKAROVA, UKRAINIAN AMBASSADOR TO THE UNITED STATES: Russia is forcefully deporting not only adults and families but specifically children. And Russians themselves already admitted that 350,000 children have been evacuated, as they say, but kidnapped, let's call it the way what it is to Russia. They have relaxed their own legislation in order to allow them to be adopted quickly into Russian families. This is a brutal violation not only of international law but of common decency. How can you steal our children and try to -- try to hide them somewhere in Russia?

(END VIDEO CLIP)

BOLDUAN: Is there anything the United States can do about this?

SMITH: Yes, help the Ukrainians win this fight. Because you have to understand what Russia is doing here and what Ukraine wants. I see a lot of false stories floating around about the battle of Ukraine and Russia. What Ukraine wants is they want to be free from the oppression of Russia. In 2004, Russia attempted to basically install a government and overturn an election that read -- led -- sorry, to the Orange Revolution, in 2014, when the then-president was getting too much control from Russia that led to the Maidan revolution.

Ukraine wants to be free of Russia, controlling them and manipulating them. Russia doesn't want that. And what Russia is doing, it amounts to genocide. They know that Ukrainian people don't support them, and don't want them there, so they are going into these towns that they control in Ukraine, taking the population out, in many cases, also executing people in the country who refused to submit to their rule. This is one of the more brutal things that we've seen in decades that Russia is trying to do. And Ukraine people just want their country. They want their sovereignty. And that's what we need to work with them to protect.

BOLDUAN: And they need their children back for sure.

SMITH: Absolutely.

BOLDUAN: Before you go, Speaker Pelosi is planning a trip to Taiwan in the coming weeks. China is pushing back hard on this, I know you've seen it, warning, I think the way they put it his resolute and forceful measures if she makes the trip. Do you think she should go? Do you think -- would you think she's rethinking?

SMITH: I don't think we should let China dictate something like this. You know Nancy Pelosi is the Speaker of the House, she's the most powerful person in the country, if she wants to go visit Taiwan, she ought to be able to do that. And China -- Russia does the same thing. Russia says you know everything is like provocative and threatening. It is not provocative or threatening for Nancy Pelosi to go to Taiwan. She's meeting with them and she's talking to them.

China does not have the right to dictate how the U.S. or Taiwan should conduct itself in these matters. Nancy Pelosi isn't going there to call for Taiwanese independence or to attack China. She's going there to express support for the Taiwan government and the Taiwan people. And I just don't think we can let China dictate to us where the Speaker of the House travels to.

BOLDUAN: Yes, scary nonetheless.

SMITH: Yes.

BOLDUAN: It's good to see you, Mr. Chairman, thank you for your time.

SMITH: Thank you, Kate. Appreciate it.

BOLDUAN: Coming up for us. A big economic week is ahead of us that could tell really the country if the nation is headed for a recession. Details next.

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[11:52:30]

BOLDUAN: A deluge of economic data is coming this week with recession fears rising. The message this morning for the White House is America is resilient, but where do things stand and what are we going to learn this week? CNN's Rahel Solomon is here with that. What are we going to hear this week, Rahel?

RAHEL SOLOMON, CNN CORRESPONDENT: Well, Kate, it's a massive week for econ data but also corporate earnings. So Washington Wall Street, every one watching what we're going to hear these next few days. So let's start with tomorrow. We're going to hear consumer confidence essentially, how are people not just feeling but how might that impact their financial decisions, their purchasing decisions in the months to come?

We know that that level has been at about a 10-year low, so consumers not feeling great. Wednesday, all eyes on the U.S. Federal Reserve, we expect another rate hike of 75 basis points or about three-quarters of a percent. We saw a rate hike of the same magnitude last month. But just in terms of historical terms, that is a massive rate hike.

Thursday is probably going to be the day that gets the most attention, the first reading on Q2 GDP. We know that the first quarter GDP was negative. If we see another negative print, Kate, it is going to reignite the debate over are we already in a recession. The White House has already been pushing back against that. And then on Friday, we get a key inflation report that PCE which is the Fed's preferred inflation report it's a bit more broad than CPI so a huge week. And on top of that, we're going to get earnings from Apple, Amazon, Facebook, so it is a massive week.

BOLDUAN: Yes, it will be -- yes, the Q2 will be an interesting -- an interesting moment. Also then see what the White House says in response because they pushed back pretty hard about questions of recession so far.

SOLOMON: They have. And they've been pointing to the job market which is historically strong and it has been very strong but remains to be seen if that will be enough after Thursday.

BOLDUAN: Absolutely. It's good to see you, Rahel, thank you so much.

SOLOMON: OF course.

BOLDUAN: All right, so there is a lot to be anxious about these days, just ask Rahel. But expectations can make a big difference when it -- when it comes to your well-being. Dr. Sanjay Gupta has more in today's "CHASING LIFE."

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: I'm Dr. Sanjay Gupta, host of CNN's "CHASING LIFE" podcast. Have you ever convinced yourself you're bad at math, you aren't good at running, or you get too nervous to speak in public? Learning how to shift our expectations can impact our physical and mental health. Science writer David Robson calls it the expectation effect. In an experiment, researchers told a group of runners they had a gene that made them especially good at exercise, even though they didn't. They found that simply having this expectation actually improves their performance.

[11:55:02]

Here are a few tips on how you can use this sort of expectation effect to your advantage. Robson says, start by examining the evidence. Ask yourself whether there is any objective evidence to assume you might be bad at something. For example, are you actually unable to enjoy exercise or is that something you convinced yourself to be true? You can also perform a ritual. Think of top athletes. They have pre-game rituals to help them get into the right mindset. For you, it could be just having a cup of coffee before writing. But the point is it helps you feel in control.

You can hear more about how to optimize your health in "CHASE LIFE" wherever you get your podcast.

(END VIDEOTAPE)

BOLDUAN: Sanjay, thank you so much. And thank you so much for being here, I'm Kate Bolduan. "INSIDE POLITICS is up next after this.

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