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U.K. Prepares For Coronation of King Charles III; Interview With Rep. Josh Gottheimer (D-NJ); Kremlin Crisis?; Red Hot Jobs Report. Aired 1-1:30p ET

Aired May 05, 2023 - 13:00   ET

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

[13:00:00]

JULIE HIRSCHFELD DAVIS, "THE NEW YORK TIMES": That doesn't mean that the questions aren't and the pressure is misplaced, but it makes it, I think, more difficult for the senator to accept.

JOHN KING, CNN HOST: So, another one of the big issues, I think, that will be front and center next week. You have the meeting on the debt ceiling. You have the question of whether Senator Feinstein returns. You have more.

Big week ahead for us after a big week in the rearview mirror.

And thank you for your time today and throughout this week for INSIDE POLITICS.

Stay with us, big news day. CNN NEWS CENTRAL starts right now.

JESSICA DEAN, CNN HOST: Red-hot jobs report, the U.S. economy adding more than a quarter-million jobs, as the jobless rate ticks down. And the Fed's inflation fight just got more complicated.

JIM SCIUTTO, CNN HOST: A dire threat to Moscow's war machine. The head of Wagner, the mercenary group deployed in the war against Ukraine by the tens of thousands, says he could pull out his forces.

This is only the latest potential challenge for the Kremlin, as Russia braces for an upcoming counteroffensive by Ukraine. Kyiv hopes it will end the war once and for all.

BORIS SANCHEZ, CNN HOST: And a ceremony fit for a king, the U.K. preparing for the royal coronation of King Charles III.

We're following these major developing stories and many more, all coming in right here to CNN NEWS CENTRAL.

DEAN: Recession fears did not stop the U.S. job market from booming in April. Analysts were expecting 180,000 new jobs. Employers came in much hotter, creating 253,000.

And the Dow is loving it. But these robust numbers could complicate the Fed's efforts to rein in inflation. Minutes ago, however, President Biden touting the numbers.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Unemployment rate is at 3.4 percent, which is the lowest in 50 years. Black employment has hit a record low. And the really good news is, working-age Americans are participating in the labor force at the highest rate in 15 years, not just since the pandemic, in 15 years.

And the working-age women are participating at the highest rate in 75 years.

(END VIDEO CLIP)

DEAN: CNN business correspondent Rahel Solomon is joining us now to break it down.

Rahel, we just heard from the president, but what are you seeing in all of these numbers?

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, Jessica, it looks like summer came a little early this year, at least according to this jobs report.

So, as you pointed out, 253,000 jobs being added in the month of April, hotter than economists were expecting. Now, we did get revisions for the prior two months that we can show you here. March was revised lower. February was revised lower, in terms of unemployment falling to 3.4 percent, tying a 50-year low.

Now, we have been in this range with unemployment of about 3.4 to 3.7 percent since March of 2022. As the president just said, we saw more people come off the sidelines. That was good news, a lot of that being driven by women, a lot of that being driven by women of color. So that was good to see.

In terms of where we saw in terms of sector, where we saw the largest job gains, professional and business services, really strong demand for accountants. We saw that. Health care adding 40,000 jobs, a strong demand for nursing care facilities, that sort of thing, also leisure and hospitality adding 31,000.

Important to point out, however, with leisure and hospitality, Jessica, that this industry is still not where it was before the pandemic. They're still down about 400,000 jobs. So, in many ways, they are still catching up.

And then here's the caveat. The jobs support is considered more of a lagging indicator. This is not necessarily where you would see the first signs of trouble. I spoke a short time ago to Julia Pollak. She's the chief economist of ZipRecruiter.

And here's what she told me, Jessica. She said: "The issue, of course, is that this," this being the jobs report, "is not necessarily where the risks show up first. Things can turn on a dime in the financial sector very quickly. We have seen with SVB how quickly things can deteriorate when investors smell a rat."

That said, still very strong demand for workers and, as I said, summer came a little early this year, as things heat back up.

DEAN: No kidding.

And we saw Julia there talking about SVB -- SVB. We did see that shares of regional banks rebounded a bit today after a big sell-off yesterday. Is that turmoil contained? What's the outlook there?

SOLOMON: It's hard to say that it's contained, especially when you have seen so much volatility.

The regional banks have been up, they have been down. Today, they're taking part in the larger broader market rally, but hard to say for sure that it's contained. And here's what's really concerning about this, Jessica.

The stress with the banks could undo all of the strength we see in other parts of the economy. Earlier this week, I spoke with the chief economist of Bank of America, and I said, look, with inflation being what it is, with interest rates being what it is, with the debt ceiling showdown being what it is -- and I could go on -- what concerns you most moving forward?

[13:05:04]

He said the banking stress. So that's the concern there.

DEAN: Oh, wow, something to keep in mind.

Rahel Solomon for us, thanks so much -- Jim.

SCIUTTO: Today, a top Kremlin official warned that Russia and the U.S. on the verge of an open armed conflict, his words, while claiming that the U.S. wants to destroy sovereign Russia.

But as Moscow ramps up its rhetoric seriously this week, there is a growing rift emerging inside the Russian war effort. The head of the Wagner Group, the private military company leading the siege in Bakhmut, has been criticizing Kremlin leadership for failing to give his fighters enough supplies and ammunition.

Now he is threatening to pull out of that battle entirely.

(BEGIN VIDEO CLIP)

YEVGENY PRIGOZHIN, WAGNER GROUP CHIEF (through translator): I am officially informing the defense minister, chief of the general staff, and the supreme commander in chief that my guys will not be taking useless, unjustified losses in Bakhmut without ammunition.

So, on May 10, 2023, we are pulling out of Bakhmut. We have only two or so kilometers left to capture out of 45.

(END VIDEO CLIP)

SCIUTTO: Now, if true, this would certainly be a big deal. Wagner is not just a loose band of freelancers. They are hardened

mercenaries with a global reach. In December of last year, the National Security Council spokesperson, John Kirby, estimated they had close to 50,000 fighters deployed in Ukraine alone, a majority of them convicts freed from prison in order to fight.

The figurehead of the Wagner Group, who we just heard from, Yevgeny Prigozhin, so close to the Kremlin, he's been known as Putin's chef. He says he founded Wagner in 2014. And CNN has tracked Wagner mercenaries' movements in the Central African Republic, Sudan, Libya, Mozambique, Ukraine, and Syria.

They have been accused of some of the worst human rights abuses in several of these countries. And, for that reason, the U.S. Treasury Department designated the group as a transnational criminal organization in January this year.

CNN's Nic Robertson, he's in Ukraine tracking this.

And, Nick, it's not the first time we have seen Prigozhin complain about his supplies on the front line, but to threaten to pull out entirely, I wonder, do Ukrainian commanders take that threat seriously?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: They provide their own interpretation on it, and they can see that this perhaps is becoming the only reality left open to Prigozhin, because if -- they say, if Russia doesn't fix its ammunition supply problem and Prigozhin continues to lose 100 troops a day, which is what's happening, they say that that's actually going to potentially destroy Wagner.

So, therefore, Prigozhin has no other option, if he doesn't get the extra ammunition, to pull out, or face Wagner having catastrophic losses. And it's interesting. When you listen to what Wagner Prigozhin went on to say was, he said: We will pull out, we will go away, we will lick our wounds, and we will be there when the Russian nation needs us.

So I think part of this is bluff, but part of it is also perhaps political positioning. I think it's very significant as well that, just today, Prigozhin announced that he was hiring Russia's former deputy defense minister, who was only pushed out of his job last week, as one of his deputies at Wagner.

So this is very significant, that it clearly seems to indicate that there are highly placed defense officials within the Kremlin who actually are in favor of Prigozhin. And Prigozhin is specifically calling out the defense chief, the army chief of staff.

So there are clearly some fundamental fissures that he's trying to exploit for whatever reason, exploit because Putin wants him to, because Putin wants to have fall guys, like the defense minister, Sergei Shoigu, when he doesn't get the gains in Ukraine that he wants, or because Prigozhin thinks he can get some political capital of his own and perhaps run for high office. None of that's clear. But what is clear is, that gives somewhat of a

boost to Ukrainian morale when they go into the fight in Bakhmut, because they know the Russians are hurting and they're fighting internally.

SCIUTTO: As you know, listen, it's an open secret, right, that Ukraine is preparing for a major counteroffensive in the east, but they have been suffering enormously in Bakhmut, losing forces by the day in similar numbers to the Russians.

When you speak to Ukrainian commanders, what are their hopes for this counteroffensive?

ROBERTSON: Their hopes are that they can get momentum and that they can do it and they can smash through.

You know, when you come here as a journalist, Jim -- and you have been here as well -- you know that -- that part of the journalistic credentials you get here, there are various caveats and articles. Article 72, I think it is, has a whole list of things that, as a reporter, at a time like this, when there is a -- when there is about to be a counteroffensive, things that you can't report...

[13:10:03]

SCIUTTO: Yes.

ROBERTSON: ... things that you might see when you're traveling around, which we're here, and we're traveling around, and we're seeing things, and we're talking to commanders.

And I can tell you that those commanders have a level of confidence, although they're frustrated in some areas about -- about some aspects of it, but they -- they're confident. They are confident.

SCIUTTO: And they have been underestimated before, we know.

Nic Robertson, regardless, a tough fight to come.

Nic in Eastern Ukraine -- Boris.

SANCHEZ: A lot of threads to pull on from Eastern Europe, Jim.

And to help us get some perspective, we have a member of the House Intelligence Committee, Democratic Congressman Josh Gottheimer of New Jersey.

Congressman, we're grateful to have you. Thanks for sharing part of your afternoon.

I want to ask you about a number of things, but, first, let's take a step back. Of course, let's take a step back and talk about the drone strike over the Kremlin a few days ago, Russia claiming the United States is behind it, the United States denying that.

Do you have any indication of what led to this explosion over the Kremlin?

REP. JOSH GOTTHEIMER (D-NJ): No.

I'm actually getting an intelligence briefing before the committee on Monday. What we know often, though, is, in cases like this, Russia is not often a truth-teller about what happened. So I'm eager to get the facts. I mean, I think the bigger issue -- and you were just discussing this a minute ago -- is actually the volatility going on right now in Russia with Putin, with Wagner, and how much of a challenge that is for him, given how much he depends on them.

This is a huge boost to Ukraine. It's obviously a very tough -- it continues to be a very tough conflict. But the -- but I think this would be a huge setback to Russia.

SANCHEZ: Well, I'm curious about that, because, obviously, Bakhmut has been a place where Russia has invested a lot of blood and munitions and focus.

And if Yevgeny Prigozhin backs out, what does that tell you about the broader conflict and his ongoing dispute with the Russian Ministry of Defense?

GOTTHEIMER: I mean, listen, I -- I'm not inside there, but you can tell from what has just been reported that -- and, overall, what we have seen is that Putin continues to face a lot of challenges on a lot of fronts, and many more setbacks than he expected.

You know, this was supposed to be something that he thought he would just run over Ukraine and -- in a David-Goliath effort. But the bottom line is, the fight back from the Ukrainian people has just been heroic. And every time Putin thinks he's got something locked up, he gets a serious fight back from the Ukrainians, from the allies, and who are in lockstep behind Ukraine.

And I think this has just not gone the way Putin wanted it to, and this would be just another huge setback against heroic forces.

SANCHEZ: Congressman, I do want to ask you about a reported setback on the Ukrainian side.

There's indications -- there are indications that some of the HIMAR systems, these high-mobility rockets that the U.S. has provided Ukraine, that Russians have been able to essentially hack the GPS systems using electrical jammers.

The U.S. is still committed to sending about another 20 or so to Ukraine. Is that something that, at this point, should be reconsidered? That would double the number that Ukraine has right now.

GOTTHEIMER: No, I think this is the right equipment, and I think we need to keep that support. As you just pointed out, I think another 20 more are on the way.

These are key critical systems. I think they need certain software updates that -- to respond to Russia's latest antics on jamming. That will be addressed. But these systems are critical. I think we need to keep them moving and our support moving behind Ukraine.

So, I think that will be addressed to counter what Russia is doing. And that's -- these munitions are critically important and have been since the beginning.

SANCHEZ: And, Congressman, another question on the ominous words from a top Russian official, saying that the United States and Russia are on the verge of open conflict.

What did you think?

GOTTHEIMER: You know, I -- what do I think? I think that this is -- we have been consistent with our allies in standing up to the egregious and -- behavior of the Russians from day one here and their heinous attack on the Ukrainian people.

And so I think we have -- we have made it very clear from the beginning with our allies that we will stand up to their atrocities, and that's what we're doing by being supportive of the Ukrainian people, as many of our allies have been. And we will continue being supportive.

And you have heard that, by the way, from Democrats and Republicans in the United States, that we have to stand by our allies, and we stand by -- with NATO, stand by the Ukrainian people, and make it very clear that this is -- what Russia has done, what they're attempting to do is unacceptable.

SANCHEZ: Congressman, we appreciate your perspective. We hope to hear from you again after that briefing about the drones. Maybe you will provide us some information?

[13:15:00]

GOTTHEIMER: Thanks so much. Have me -- I will look forward to being back.

SANCHEZ: Thank you so much, Congressman Josh Gottheimer of New Jersey.

Thank you -- Jim.

SCIUTTO: Well, the coronation countdown is on. How the palace is preparing for King Charles' big day. That's tomorrow. We're going to be live in London.

Plus: chilling video released showing university murder suspect Bryan Kohberger interacting with an officer at a traffic stop just weeks before the gruesome stabbings.

And a new and urgent warning for our oceans. Scientists say that water temperatures are now off the charts, and the impact, sadly, could be catastrophic.

(COMMERCIAL BREAK) DEAN: Right now, a royal reception is under way in London, the British royal family hosting overseas guests ahead of tomorrow's official crowning of King Charles III. Dignitaries from around the world, including first lady Jill Biden, are there for those ceremonies.

[13:20:00]

And, of course, it's been 70 years since the U.K. witnessed a coronation, when Charles' mother, Elizabeth, was crowned queen. And, today, he met and shook hands with some of the British public, thanking them for attending his big day, which is now just 17 hours away.

Thousands are expected to attend the events outside of Buckingham Palace, and some are already staking out their spots along the parade route.

CNN's Salma Abdelaziz is live in London.

And, Salma, the pomp and circumstance that we're going to see tomorrow is probably unlike anything we have seen in some 70 years.

SALMA ABDELAZIZ, CNN CORRESPONDENT: The joy, the atmosphere of happiness, you can just feel it all along this mall. You can see these tents, everyone camped out, just hoping to get a glimpse of tomorrow's big, big event.

And I want to introduce you to, I think, the cutest family on the Mall. All of these little ones, cousins, sisters, they're all here today.

Why did you come out? Why are you here?

KIDS: To watch the king's coronation.

ABDELAZIZ: To watch the king's coronation.

And, Lacey (ph), I'm going to ask you, because you're the eldest, what does it mean to be here with your whole family and see this day?

UNIDENTIFIED FEMALE: It feels really special just to be here with my family, to spend a -- such a special moment, which could be like once in a lifetime.

ABDELAZIZ: And you all are going to camp out tonight.

Dan, I know you're one of the parents. How do you feel about camping out with this many little ones?

UNIDENTIFIED MALE: Crazy!

(LAUGHTER)

UNIDENTIFIED MALE: But it's all a bit of fun.

ABDELAZIZ: But it's all a bit of fun.

And I'm just going to ask for one last thing. Could everybody turn around and show me the back of their T-shirt? There you go, a whole team just ready for the big day.

I mean, this is such a family-like atmosphere. Everyone knows this is once in a lifetime. They want their kids to be a part of it., Jessica.

DEAN: Salma, I think they're making what they call core memories as a family there. They're going to remember that for years and years to come.

Now, it looks like you are along the parade route. Is that where you're seeing most of the people camping out? Are they kind of spread out across the city? And what are they looking forward to the most?

ABDELAZIZ: So, actually, if you just walk along with me, like, all down this way, just keep following me here, you can just see these little tents everywhere. And it is all down this mall.

Again, this is the Mall, so this is the route that connects Buckingham Palace. Down here on the other end is Trafalgar Square. So, this is where the procession is going to be. And, earlier today, King Charles gave a glimpse, gave a touch to people when he was able to come out right here at the top of the Mall and shake hands with people, thank them for taking the time, the energy to camp out tonight.

And everyone is hoping not just to get that glimpse of the procession, but also that balcony moment, Jessica.

DEAN: Oh, yes, that's always kind of the indelible moment from these festivities.

Salma Abdelaziz in London for us, thanks so much.

And I want to bring in now our CNN royal correspondent, Sally Bedell Smith.

Sally, it's lovely to see you.

SALLY BEDELL SMITH, CNN ROYAL CORRESPONDENT: Great to see you.

DEAN: Salma just took us outside to see it all.

SMITH: Yes.

DEAN: Walk us through -- as someone who has covered this family, walk us through the importance, not only for Prince Charles as an individual, but as -- for the royal family as a whole, and what it means going forward in this modern age.

SMITH: Well, it's a formal affirmation.

Obviously, there -- a lot of people don't believe that a monarch becomes truly a monarch until he or she is anointed, makes the sacred oath and then is crowned. So, even though he became king the moment his mother died, it's really his -- this coronation is the sort of apotheosis of who he is and what he means, not only to current -- to Britain right now, but also in the long span of 1,000 years.

This is an ancient ritual with very specific emblems and regalia and vestments. And, at the same time, he has, I think, in a very imaginative way, adapted it where he could to the 21st century to make it reflect Britain as a multicultural, multiethnic, multifaith country. And that will be very representative tomorrow.

DEAN: And it's interesting because, obviously, he is his mother's son, and yet you have written extensively about Prince Charles' upbringing, who he is.

SMITH: Yes.

DEAN: He's a very different man than a lot of people in his family, and certainly his mother and father, who came before him.

SMITH: Yes, he is.

I would say, fundamentally, he has always been sort of, on the one hand, rather insecure. I think he's gotten over that. He was very shy when he was young. But he has always had a kind of questing intelligence, and particularly when it comes to spiritual matters. He has wanted to make a difference, because he knew that he would have to wait quite a while.

[13:25:03]

He didn't reckon on 70 years, but he knew he would have to do something meaningful. And he has. And his legacy as the prince of Wales is very extensive. And he's had a profound impact on all levels of British society.

It's -- there were people who were sort of worried that, because his mother had a sort of -- such a serenity about her and such a kind of intrinsically reassuring presence, that maybe he couldn't measure up to that.

But I believe, since he became king back in September, he has shown us that he has that same ability to bind people together. It's something that has meant a lot to him for years. He has always wanted to heal rifts, be -- whether it's between religions, whether it's between cultures.

And I think the reflection of that impulse will be -- will be really felt tomorrow.

DEAN: Wow.

It is something to see somebody kind of meet their destiny, meet their moment in what many would consider to be their third act of life.

All right, Sally Bedell Smith, thank you so much for your insight. We sure do appreciate it.

SMITH: You're welcome.

DEAN: And don't forget you can celebrate the coronation of King Charles III with CNN. You can watch history in the making inside Westminster Abbey and along the procession. Our coverage starts tomorrow morning at 5:00 a.m. right here on CNN -- Boris.

SANCHEZ: Coming up, newly released video of Bryan Kohberger taken one month before he allegedly killed four University of Idaho students, what this reveals about the case.

And, later, it's the two most exciting minutes in sports, but there's a cloud over this year's Kentucky Derby, after four horses die in a matter of days. Details on that and more coming up on CNN NEWS CENTRAL.

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