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Final Preps Underway for King Charles' Coronation Tomorrow; Russia Jamming U.S.-Made Rocket Systems in Ukraine; OMB Director Says, White House Open to Short-Term Debt Limit Fix. Aired 10-10:30a ET

Aired May 05, 2023 - 10:00   ET

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

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SARA SIDNER, CNN ANCHOR: It's a ceremony not seen in the United Kingdom in 70 years. Tomorrow, the official crowning of a king, King Charles III, to be specific. CNN is live in London ahead of this historic day.

KATE BOLDUAN, CNN ANCHOR: And after warnings that the U.S. could tumble off a debt cliff next month, the White House is signaling it's open to talks, but not about spending cuts. This just ahead of the big meeting between President Biden and congressional leaders. Can they avoid a default?

JOHN BERMAN, CNN ANCHOR: A suspect is in custody this morning after a series of stabbings near the University of -- UC Davis. Details about who police say is behind the attacks, all of this right here on CNN NEWS CENTRAL.

SIDNER: The countdown to King Charles III's official coronation is on, and this morning the king is on the move. Last hour, we saw him as he left Buckingham Palace to meet with commonwealth leaders. And soon we will see him welcome international guests who are attending tomorrow's fanfare, including First Lady Jill Biden.

Just under 19 hours from now, a crowning ceremony not seen in the United Kingdom in 70 years will happen. Charles will formally become the royal leader of the U.K. His wife, Camilla, will also officially be crowned queen.

Tents are already lining the procession route as thousands of people descend upon the mall outside of Buckingham Palace.

And CNN's Salma Abdelaziz is there with the crowds. Salma, just how excited are people? I understand you spoke to some folks who got to meet and shake hands with the king.

SALMA ABDELAZIZ, CNN CORRESPONDENT: Sara, the excitement is through the roof here. You can just see behind me this sea of tents. They are all the way down the mall. People camped out just hoping to get a glimpse of the procession, and as you mentioned, just a short time ago, King Charles gave a preview. He came out on the mall. He shook hands including, with these two lovely people, Clare and Lovell. Claire, I'm going to start with you. How did that moment feel? How did it feel to shake hands with him?

CLARE, MET AND SHOOK HANDS WITH KING CHARLES III: It was incredible. My legs went to jelly as he approached us. And I'm never going to wash my hand.

ABDELAZIZ: And, Lovell, there's no doubt about where you came from, all the way from Toronto. Tell me about that moment.

LOVELL, MET AND SHOOK HANDS WITH KING CHARLES III: It was incredible, absolutely surreal. Just to be able to shake hands with the king and offer congratulations, it was amazing.

ABDELAZIZ: And this is a once in a lifetime moment. Why come all the way from Canada?

LOVELL: Because it's once in a lifetime, and I wanted to be part of this, so I'm here. When I found out the date of the coronation, I booked a hotel and my flights.

ABDELAZIZ: And you hear that story repeated across the mall time and time again. People are just so deeply aware, so deeply conscious of the fact that this is only happening once in a lifetime, as you mentioned, the first time in 70 years for a coronation to take place, and everyone here just wants to be a part of it, Sara.

SIDNER: You can tell her the rule is she can wipe her hand on her jacket and she never has to wash the jacket. I do recommend washing hands even though she shook the king's hands. Salma, thank you so much for joining us and giving us all that. John?

BERMAN: Yes, I have my special hat ready. This ceremony promises to be formal, precious, and historic, not necessarily in that order. Westminster Abbey has been the setting for every coronation since 1066 when William the Conqueror was crowned. He, of course, a famous Frenchman of Viking descent.

There will be more than 11,500 officers on duty making this one of the largest security operations the city of London has ever seen. Those officers will get a special coronation medal for their service, as will more than 400,000 others who have actively contributed to this event.

Invitations were sent to approximately 2,300 people, including roughly 100 heads of state from around the world. For what it's worth, U.S. presidents do not or have not -- they don't go to British coronations. Again, there will be two 1.3-mile processions through London, one to get the king to the ceremony, one to take him back to the palace for the drive to the service.

King Charles has opted to ride in the diamond jubilee state coach built in 2014. It is newer to the collection, black tires with gold hub caps.

[10:05:00] But for the ride back, he's taking an older ride, much older. The gold stagecoach right there has been used in every coronation since William IV in 1841. And, Kate, it corners like it's on rails.

BOLDUAN: I don't know how to follow you, so I'm not going to. And I'm just going to someone else, including, joining me right now is London's mayor, Sadiq Khan, to talk to us more about what the weekend means. Mayor, what is this weekend going to be like in London? Are you all ready?

MAYOR SADIQ KHAN, LONDON: Well, Kate, great to join you. I'm just coming from the excitement that Salma was talking about. It's going to be the best day our city has seen for decades. It's going to be amazing, pomp, pageantry, a solemn religious service, hundreds of thousands of people from across the country, across the world. You have seen some of them along the streets of the ceremonial procession. We have more world leaders, presidents, prime ministers, first ladies, royal families than we have ever seen before in one place. It's a two- hour ceremony in Westminster Abbey, more than 2,000 dignitaries, including ordinary British people moving from across the globe celebrating our king's coronation. And it's going to be an exciting day.

BOLDUAN: You mentioned the number of heads of state that are coming. I mean, security around these huge international events is always a focus. I mean, you have so many heads of state coming. I was wondering this morning, how would you compare the security preparations and setup around the coronation as compared to the just recent -- the other very recent international event, which was the funeral service for Queen Elizabeth?

KHAN: So, I just come from the special operations room that the police are running. We can't think of an example of an event around the world which has had this many world leaders and this many people attending. Last year's funeral of her Majesty Queen Elizabeth II was big, but not as big as the coronation is going to be. Not as many world leaders came last year, for obvious reasons, the short notice and so forth.

When you think about global events, whether it's Olympics, whether it's World Cups, whether it's inaugurations, actually, there aren't as many world leaders as there are going to be in London tomorrow, but also the numbers of people around the ceremonial procession. And that's why it's a logistical nightmare.

To give you an idea of the scale of the challenge over the course of the last few days, almost 30,000 officers involved. Tomorrow, more than 11,500 officers involved. Not just doing all the normal things, public order, making sure everyone is safe, but making sure the VIPs and dignitaries can enjoy themselves but be safe at all times, whether it's a prime minister from country A, a president from country B, or some of the royal family from country C. We have got to make sure everyone enjoys the coronation but is kept safe.

BOLDUAN: I want to ask you just personally. I mean, as King Charles becomes the head of the Church of England, of course, the coronation is also a deeply religious ceremony with the archbishop of Canterbury leading the service. There is such religious diversity among the people of London as well as the country. You're the first Muslim mayor of London. How do you approach this moment?

KHAN: Well, listen, I'm pretty proud to have met King Charles III on many occasions, including when he was Prince of Wales. What King Charles has said is, unlike the queen who was the defender of the faith, the Church of England, he wants to be the defender of all faiths. And that gives us a sense of real pride in our king.

And you're right, we're a country, we have a prime minister who is of Hindu faith, a home secretary who is of Buddhist faith, a foreign secretary whose mom is originally from Sierra Leone, and, of course, the mayor of London who is a proud Muslim, and all of us view King Charles as now king, as we indeed saw her mom as our queen.

And the reason the coronation is so important, yes, there is a religious ceremony, but the archbishop of Canterbury and King Charles III have made sure it's inclusive to those of us from different faiths and different backgrounds. And that's why we're so proud, we're looking forward to a fantastic coronation, but also being subjects and citizens going forward.

BOLDUAN: I was also reading, and I don't want to be the bearer of bad news, Mayor, but I was reading that in terms of the weather tomorrow, it could be a washout. I mean, we're obviously all familiar with London weather, but what does that mean on coronation weekend?

KHAN: So, to give you an idea of the impact on our city, hotel bookings are up by more than 70 percent. Live music things (ph) are busy, pubs are busy, shopping it going off the scales. Record numbers of tourists in London this weekend. And, in fact, the good news is the weather is going to clear up tomorrow.

There's a bit of rain in the morning, great events for the coronation, but there will be a royal household, the balcony for the fly over, the fantastic concert on Sunday at Windsor Castle.

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I can confirm exclusive to CNN, Lionel Richie is going to be in the house as is Katy Perry. Tom Cruise is rocking up as well. Nothing will divert our spirits and we'll show the world how to have a good party.

BOLDUAN: Lionel Richie and Katy Perry. All right, I was going to watch already. Now, I must watch if Lionel Richie is going to be in the house. Mayor, thank you so much. I really appreciate it.

KHAN: You might sing all night long.

BOLDUAN: I mean, I can't top it. Mayor Sadiq Khan, it's great to see you. Thank you. Sara?

SIDNER: We have some new CNN reporting that Russia is throwing off American-made rocket systems in Ukraine but using electronic jammers. That's to make the rockets miss their targets. Ukraine's military had hailed the HIMARS systems as a game changer in the war, but this interference by Russia could make them less effective.

CNN's Senior National Correspondent Alex Marquardt is following all of the developments for us. How disruptive is this if Russia has been able to jam these systems?

ALEX MARQUARDT, CNN NATIONAL SECURITY CORRESPONDENT: Well, Sara, you're absolutely right. These HIMARS systems have been absolute game changers for Ukraine. They're the most celebrated, the most feared by the Russians, the most important piece of weaponry that the U.S. has given Ukraine throughout the course of this war. They're normally extraordinarily precise, to within ten feet.

Now, the rockets that the U.S. has given to Ukraine, they fly around 50 miles or 80 kilometers, so from quite a distance. But the Russians have been quite effective at jamming them, we are told. Now, those rockets are guided in part by GPS guidance, and those GPS signals can be jammed.

I spoke to one Ukrainian source who talks to drone operators on the frontlines. Those operators fly forward and look at targets. And we're told that the HIMARS have been having a harder time being precise, harder time missing their targets -- harder hitting their targets and sometimes missing their targets.

So, what has had to happen, Sara, is the U.S. and Ukraine have had to come up with workarounds to pierce through that Russian jamming. So, they'll figure something out to get around that jamming, then the Russians will come up with a countermeasure, then the U.S. and Ukraine will then have to come up with something to counteract that.

So, in the words of a senior Pentagon official, this has been a game of cat and mouse. It means that they constantly have to be tweaked to maintain their effectiveness on the battlefield. Sara?

BOLDUAN: The Russians are in the midst of a spring counteroffensive. They are bombing over and over and over several different parts of Ukraine. Ukraine has said, look, they're preparing for their counteroffensive. This has got to be solved, correct, before that goes forward?

MARQUARDT: Yes. The HIMARS have been so critical throughout this conflict, and they will be absolutely critical during this counteroffensive. So, it is of the utmost importance that they are effective. They need to be able to fire well beyond the frontlines to hit communication hubs, logistical hubs, ammunition depots. And so that is why there is a new focus, a renewed focus, I should say, by the U.S. to help the Ukrainians take out Russian jammers so that the HIMARS can maintain that tactical edge that they have been offering the Ukrainians so far, Sara.

BOLDUAN: CNN Senior National Correspondent Alex Marquardt, thank you so much for all of that. John?

BERMAN: So, the national could default on its debt in a matter of weeks but the White House now says it may be open to a short-term fix.

A former U.C. Davis student is now accused of going on a violent stabbing spree. What police are saying about a possible motive.

And this just in to CNN, the WHO has declared an end to the global public health emergency over COVID three years after they first issued the declaration. What this means for all of us going forward.

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SIDNER: On our radar this morning, police have arrested a man in connection with the murder of an Arizona hiker. You see the suspect right there. He's being taken into custody by police. That happened yesterday. 29-year-old Lauren Heike was found dead on a trail over the weekend. Police said that she died after being attacked from behind. The identity the suspect has so far not been released.

And newly released documents reveal details of a search of Bryan Kohberger's home and his office after his arrest for the murder of four University of Idaho students. Authorities performed blood tests of over 60 stains at his apartment and at least three tested positive for blood. Police also searched a storage closet and his desk at his Washington State University office. Both were empty.

And a big legal win for Singer Ed Sheeran. A jury ruled he did not violate the copyright of Marvin Gaye's classic song, Let's Get It On, when Sheeran wrote his hit, Thinking Out Loud.

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ED SHEERAN, MUSICIAN: I'm obviously very happy with the outcome of the case and it looks like I'm not having to retire from my day job after all. But at the same time, I'm unbelievably frustrated that baseless claims like this are allowed to go to court at all.

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SIDNER: Sheeran and one of the plaintiffs who had sued him hugged and they spoke at length after the verdict. She said she respected the jury's decision. Kate?

BOLDUAN: As the United States barrels toward a potential June default on the nation's debt, the White House is signaling that it's open to talks but, to be clear, not about the spending cuts Republicans want, but talks of a short-term fix to the debt ceiling. Biden and congressional leaders are set to meet in the coming days.

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So, is this the opening to an actual solution?

CNN's Arlette Saenz is live at the White House. Arlette what are you hearing from there on this?

ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: Well, Kate, President Biden and Republicans remain far apart on how to address the debt ceiling and avoid a default. But they have started, the White House, to express some openness to possibly having a short-term fix to the debt ceiling.

Now, earlier today, one of the president's top advisers here at the White House, Mitch Landrieu, said that this is a manufactured crisis, as Republicans are not moving towards raising the debt ceiling without conditions attached, as has been done in the past. But yesterday, the OMB director, Shalanda Young, did say that the White House could be open to a more short-term fix. She did not detail exactly how long that extension could potentially be, but take a listen to what she told reporters about how it could be something that they could talk about down the road.

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SHALANDA YOUNG, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET: At least that part of the conversation about length, I would love to be in that part of the conversation because we're at least in the positive. Default is off the table. So, I'm happy when we get to that part of the conversation. We're not there yet. And the idea is to put brinksmanship to bed and get to talking on making sure we avoid default. And once we're talking about timeframe, that means we're at least on the right side of this debate.

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SAENZ: Now, this all comes as the White House has really tried to issue these dire warnings about the impact of potential default would have on the American economy. But right now, all eyes will be on that Tuesday meeting, as President Biden sits down with House Speaker Kevin McCarthy and other congressional leaders to try to find a way to talk about this debt ceiling issue as the country is barreling towards a potential default in less than four weeks.

BOLDUAN: That's right. Arlette, thank you so much, Arlette Saenz from the White House.

Trying to put brinksmanship to bed seems a tall order in Washington right now.

SIDNER: And if you can stay with me, we're going to explain some of this. A debt default would have a major impact on tens of millions of Americans, from social security to veterans' benefits, to how much you pay for a loan.

Here's a look at potential downsides. First, social security, about 66 million retirees, disabled workers and others receive monthly benefits from social security. For two-thirds of them, it makes up more than half of their income. And if the U.S. defaults on its debt, those payments could be delayed.

It could also take longer for veterans to get their disability payments and pensions. And even paychecks would be stalled for the 1.4 million active duty military members and more than 2 million federal civilian workers.

If you look at the big picture and the economic effect, a debt default would likely be disaster for the financial markets. Moody's Analytics has estimated stocks could shed as much of a third of their value or around $12 trillion, yes, with a T, in household wealth, even if the impasse were solved very quickly.

The cost of borrowing money and paying off debt would also, of course, rise. That's because interest rates on loans, credit cards, and mortgages are often based on treasury yields. That is on top of the increased cost Americans are already facing from rate hikes. And, finally, a debt default could trigger an economic downturn.

As you might imagine, analysts suggest the jobless rate could jump to 5 percent if it lasted a week and over 8 percent if the standoff lasted more than six weeks. Let's hope it doesn't happen. John?

BERMAN: Yes. Thanks for that cheery report right there, very gloomy.

You know what's not gloomy? This new jobs report. New this morning, a surprising report from April revealing employers added 253,000 jobs last month. That is way more than analysts had expected and shows the labor market is doing fine when other indicators pointed to a possible showdown -- slowdown.

The unemployment rate dropped from 3.5 percent all the way down to 3.4 percent. That is tied for the lowest level since 1969. It's very low.

With us now, Nela Richardson, she's the chief economist for the payroll firm, ADP. One way to describe this jobs report, and I keep looking at the numbers, is buffo. I mean, how do you see it?

NELA RICHARDSON, CHIEF ECONOMIST, ADP: That wasn't the first word that came to mind, but it's a very strong report. And you know what made all of the difference? The difference was made by the fact that people came off the sidelines and into the labor market. We're seeing labor force participation rate in this report for prime age workers finally exceed what it was before the pandemic. That's good news for labor supply. And it means that the labor market has some momentum in terms of hiring too. So, very strong report, and any adjective that you have that rhymes with strong is great for me.

BERMAN: Buffo does not rhyme with strong, but it means the same thing.

In terms of where we're seeing these jobs being added, it's service sector, largely, professional and business services, health care, leisure and hospitality. Talk to me about where you're seeing strength.

RICHARDSON: Exactly that, and those consumer-facing services. Recall that when the U.S. lost 20 million jobs in March and April of 2020, much of it was in the service sector. It was the hardest hit component of our economy. And that's because face-to-face interaction became problematic with the health care crisis.

Now, as we are on the other side of that, that hiring has really been strong. Leisure and hospitality has been the stalwart of the jobs recovery. But in this report, we saw that health services, education services, professional business services, even information technology, which had big headlines in terms of layoffs for large companies, even that showed hiring strength. So, that broad based hiring in the service sector was also matched with some pretty solid hiring in the goods sector as well.

So, I think one of the great things about this report is that that hiring wasn't isolated. It was really across all industries and all sectors.

BERMAN: Very quickly, what about the Fed here? Because, occasionally, you hear that the Fed, what they want to see is actually maybe a slowdown in hiring. But can it also be a good thing that the Fed is, you know, raising interest rates and the economy is holding up pretty well?

RICHARDSON: This is a rare report. And if you match that with what we're seeing in the ADP data, it's rare because you can have your cake and eat it too. We saw a lot of hiring, but matching that with the ADP payroll data, wage growth actually is moderating. And if you look at the jobs report over a period of month, you see that deceleration in wage growth. That's great news for the Fed because wages are not going to be the driver of inflation, even though we're seeing all this hiring.

Hiring is good for the worker, it's good for the economy, but having moderating wage growth is good for the Fed who is trying to contain inflation.

BERMAN: It seems like one of those days we might be able to take yes for an answer, at least from the economic data. Nela Richardson, great to see you, thanks so much for coming on. Kate?

BOLDUAN: Ahead for us, police in Davis, California, have a man in custody who they say was responsible for three stabbings that really terrorized that college community. Who he is and how police nabbed him, when we come back.

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