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WH Rules Out Cuts To Inflation Reduction Act In Debt Ceiling Talks; Moody's: U.S. Default Would Lead To Massive Job Cuts In Some States; State Dept. Suggests They Won't Hand Over Afghanistan Docs To Congress; Van Der Sloot To Be Extradited For Extortion, Fraud Charges; New Study: Snoring, Lack Of Sleep Linked To Brain Damage. Aired 2:30- 3p ET

Aired May 11, 2023 - 14:30   ET

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

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[14:32:35]

BRIANNA KEILAR, CNN HOST: President Biden and Speaker McCarthy are gearing up for round two of debt ceiling talks. The goal is to hash out a deal before the U.S. runs out of money and potentially sinks into a historic default, which could be about three weeks away now.

Ahead of the meeting, the White House laid out a list of measures with a clear message: Don't even think about cutting these.

CNN's Lauren Fox is covering this for us from the capital.

Lauren, how are House Republicans reacting to these red lines from the president's team?

LAUREN FOX, CNN CONGRESSIONAL CORRESPONDENT: Well, at this point, these are really closely held negotiations, Brianna. And a lot of Republicans have been arguing for the last several days that they are not going to negotiate in a public forum what they want to see is a negotiation play out with their leaders, Speaker McCarthy.

And like you noted, there are red lines that are starting to be drawn. The White House for one does not want to repeal parts of the Inflation Reduction Act.

That is a signature piece of legislation for the president, but something that House Republicans debt ceiling proposal took specific aim at.

There are some areas, however, where they may be able to negotiate. Some of those include permitting reform, something that both Republicans and Democrats have wanted to see, although they do come at this by different standards.

You are starting to see potential negotiation around something like maybe a work requirement.

But one of the areas that they are probably going to have to focus the most closely on is spending. And that is because House Republicans bill did reduce spending.

And you've heard repeatedly from House Republicans that they are not going to accept a clean debt ceiling bill. And said what they want to see is spending cuts accompanying those. What level those cuts are at, how specific those cuts are, that is all part of this negotiation.

But I should note that the staff that's been meeting over the last several days, they're trying to figure out what are the terms of this negotiation. What could a framework look like? They are not nearly close to a deal. They are not nearly close to releasing anything.

This is honestly just a conversation around what the contours of a negotiation looks like. So that tomorrow's meeting between leadership from Capitol Hill and the president can be more productive than Tuesday's -- Brianna?

KEILAR: Let's certainly hope that it is.

Lauren Fox, on the Hill for us, thank you.

Boris?

BORIS SANCHEZ, CNN HOST: The closer we get to that potential U.S. default on June 1st, the more we're learning about the damage it would unleash, including potentially millions of job cuts.

[14:35:04]

Let's bring in CNN's Matt Egan.

Matt, which states could see the biggest impact from a potential default?

MATT EGAN, CNN REPORTER: Well, Boris, all states would be hurt because this would just be a complete debacle. But we are learning more about the regional impact here.

Moody's Analytics put out a report estimating the potential job loss if there's a prolonged breach of the debt ceiling.

And they say that there could be half a million jobs lost in Florida and in Texas each. California could lose more than 800,000 jobs. And you can see hundreds of thousands of jobs disappearing from New York, Ohio, Pennsylvania.

And really this is a sampling. No state would be spared here.

It shows, I think, the enormous stakes during this negotiation and the importance of getting a deal done.

Which is why it was startling to hear former President Trump last night dismissing a default, dismissing the ramifications as, quote, "maybe nothing." He said it could be perhaps a bad week or a bad day.

That is really the opposite of what we're hearing from experts. Today, I asked the top federal consumer financial watchdog, Rohit

Chopra, he leads the Consumer Financial Protection Bureau, I asked about Trump's comments.

And he didn't want to comment directly but he made it clear he has the opposite view. He said there would be borrowing cost spikes. There likely would be job loss.

He said, quote, "A lot of things we assume are part of our financial fabric would get ripped away. Every family should be concerned."

SANCHEZ: Just for context on those numbers, you were describing half a million jobs lost in Florida and Texas individually. The last jobs report was thought to be great, last month's report, and it only created about a quarter of a million jobs. That is staggering.

Matt Egan, thank you so much for that perspective.

Jim, over to you.

JIM SCIUTTO, CNN HOST: Well, a sign of the sad times when it comes to firearms in this country. Two Michigan school districts have now banned backpacks for all students after several incidents in which guns were found inside backpacks. We'll have that story just ahead.

More than two million Peloton bicycles have just been recalled. We're going to tell you which ones and why. That's next.

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[14:41:47]

SANCHEZ: This just in to CNN. A spokesperson for the U.S. State Department suggesting the agency will not hand over key documents related to the U.S. withdrawal from Afghanistan. That is despite a contempt threat from Republican lawmakers.

Let's bring in CNN's Kylie Atwood, who is at the State Department for us.

Kylie, this was a deadline set by Congressman Mike McCall for Tony Blinken to hand over diplomatic cables related to the U.S. withdrawal, and it appears that's not happening?

KYLIE ATWOOD, CNN NATIONAL SECURITY CORRESPONDENT: Yes, that's what the indication was from the State Department spokesperson from the podium this afternoon.

Of course, we'll have to wait and see when this deadline actually happens tonight at 6:00.

But as you were saying, this has been an ongoing battle between the House Foreign Affairs Committee, who is investigating the Afghanistan withdrawal during the Biden administration, and the State Department.

Who says that they don't want to turn over this cable because they don't essentially want those diplomats who signed onto this cable -- expressing concern about the lack of preparation at the State Department for the withdraw from Afghanistan -- they don't want those diplomats dragged into what is turning into essentially a political fight here.

But the House feels -- Chairman McCall, feels he really does need that cable. He really needs to see what diplomats were saying, what they were warning the department to do that they weren't doing.

So we're continuing to track this. Of course, it is pretty high stakes right now because the chairman has said that he is going to hold the secretary of state in contempt of Congress, which is pretty critical.

And a very real threat from the chairman if the State Department doesn't actually comply. We're watching to see what happens.

But indications from the State Department is that they are still standing clear, that they don't want to provide the actual cable. They have provided briefings.

But the chairman is saying those briefings haven't been substantive enough.

SANCHEZ: Yes. McCall even offering to redact the names of the diplomats to try to protect them the way the State Department has said they want to, but response on that. We'll see what comes next.

Kylie Atwood, at the State Department, thank you so much.

Jim?

SCIUTTO: The main suspect in the 2005 disappearance of Natalee Holloway is now being extradited here to the United States. Joran van der Sloot faces charges of wire fraud and extortion for scamming the Holloway family.

Their daughter last seen leaving a bar all those years ago in Aruba with him. The Dutch national is serving time in a Peruvian prison for a separate murder case.

The Holloway case inspired countless headlines, books, movies, theories about what happened. Those very hard questions. She was an 18-year-old from Alabama.

CNN's Jean Casarez joins us now.

Jean, tell us what we know about these charges that he faces here. And is there any continuing investigation of the essential issue here, right, which is Natalee Holloway's disappearance?

JEAN CASAREZ, CNN CORRESPONDENT: Excellent question. I think that will be part of the U.S. case.

Jim, we are just learning, CNN Espanol, has confirmed they spoke with Maximor Alteplase. He is the attorney for Joran van der Sloot. He is in Lima, Peru. And he has just said that he is going to appeal the decision by the Peruvian Supreme Court to extradite Joran van der Sloot to the United States.

[14:45:07]

He believes the time has passed, that no longer can the statute of limitations allow for him to come to this country. We will see where that goes.

But the prison that Joran van der Sloot is in right now is really 24 hours away by car from Lima. He says he has not had the chance at this point to talk with his client.

But this extortion -- and it is extortion -- it's one of the federal charges as well as wire fraud. It stems from a transaction in 2010.

The Holloway family was desperate to find their daughter, the remains of their daughter. So a $250,000 reward was offered. Joran van der Sloot found out about that reward.

And according to legal documents, he contacted an attorney of the family saying that he would be willing to say exactly what happened to her and where her remains could be found. But he wanted the money.

The Holloway family began working with the FBI, according to those legal documents, and they said it's a deal. Papers were signed. He was given a $25,000 down payment, put in his bank account and partially cash.

And that attorney went to Aruba. He drove with Joran van der Sloot to a home and Joran said her remains are in the foundation of that home and my father buried her there.

According to Natalee Holloway's mother, here is what she writes: "In May of 2005, my 18-year-old daughter, Natalee Holloway, left Birmingham for Aruba to attend her high school graduation trip. She was never seen again."

Now almost exactly 18 years later, her perpetrator, Joran van der Sloot, has been extradited to Birmingham to answer for his crimes.

Why is this allegedly extortion? Because Joran van der Sloot sent an e-mail after he took that representative to that home in Aruba, and he said, guess what, it's all a lie. Nothing I told you was the truth.

And he is serving time now in Peru for the murder of Stephany Flores -- Jim?

SCIUTTO: Just such a sad story. And imagine the questions that that poor family has.

Jean Casarez, thanks so much.

Brianna?

KEILAR: Now to other headlines that we are watching this hour.

A Michigan public school system banning backpacks after a fourth handgun was confiscated from students this year. The most recent firearm was found in a third grate grader's school bag. The district says the ban will be in effect until further notice.

Also, a major victory for asylum seekers. The Supreme Court is allowing a transgender Guatemalan woman to appeal her deportation from the U.S. on the grounds she will face sexual discrimination and assault in her home country.

This ruling could make it easier for other noncitizens to challenge their removal orders in court.

If you start with a morning ride on your Peloton, well, listen up, because the company is recalling two million units, two million bikes due to a safety hazard. The seat could break mid ride on model number, PL01. So you can contact customer support for a free at-home repair kit.

Boris?

SANCHEZ: If you suffer from untreated sleep apnea, a new study suggests you need to get to the doctor right away. Because there are some details you'll want to hear about potential brain damage.

Plus, there's new hope for children with peanut allergies. A skin patch might be the answer. We'll have details on those stories and many more straight head on CNN NEWS CENTRAL.

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[14:52:58]

KEILAR: All right, millions of people snore in their sleep. That means millions of people have to put up with it. But a new study says it may be more than an annoyance. It could actually cause brain damage.

It's estimated that 936 million adults suffer from sleep apnea worldwide. And those are just the ones that have been diagnosed.

CNN health reporter, Jacqueline Howard, is joining us now on this story.

I think a lot of people, Jacqueline, are going to pay attention to this. So tell us exactly how sleep apnea can impact the brain.

JACQUELINE HOWARD, CNN HEALTH REPORTER: That's right, Brianna. And we know that there is this connection between sleep and brain health. Sleep is beneficial for the brain. It helps with those connections between brain cells.

And during sleep, your brain goes through a process where built-up toxins are cleared away. So we see this connection between sleep and benefits to the brain.

In this particular study, researchers looked at MRI images from 140 study participants. These participants had sleep apnea. And the researchers found that those with more severe sleep apnea

showed more damage to the white matter in their brains. That's in comparison with those who had more mild sleep apnea.

And this also kind of shows how having more disruptions to your sleep caused by sleep apnea can aim the brain.

Because white matter is very important for brain function, for brain health. We know that it's found in deeper tissues of the brain.

That really shows that connection again between brain health and sleep -- Brianna?

KEILAR: It's alarming.

HOWARD: Yes.

KEILAR: It's actually sad when you describe it like that.

So let's talk about treatment for sleep apnea, because I don't think just say elbowing someone is going to help them get treatment. What are the real treatments here?

HOWARD: That's right. And you first want to get evaluated for sleep apnea, if you think that you have it.

Of course, sleeping on your side is better than sleeping on your back. So there are some things that you can do while you're sleeping.

[14:54:56]

But for treatments specifically, we know that breathing devices like a CPAP machine can help or oral devices like the mouthpiece. And in some cases, therapy for muscles in your face can help. Or in severe cases, surgical procedures.

But again, other things that you can do in your day-to-day routine, maintaining a healthy weight can help, as well.

And like I said, if you are having disruptions with breathing in your sleep, make sure you do not sleep on your back. Try to position yourself on your side. And that may help as well -- Brianna?

KEILAR: Jacqueline, really important story impacting so many people. Thank you.

Boris?

SANCHEZ: Parents may soon be breathing a sigh of relief for their kids with peanut allergies. A new skin patch is showing promising results in toddlers ages 1 to 3.

Clinical trials show, after 12 months, two-thirds of children given the skin patch could safely tolerate peanut protein compared to those that received a placebo.

The peanut protein they were given was the equivalent to eating one to four peanuts, training their bodies to handle an accidental bite.

This study was conducted by researchers from French biopharmaceutical firm, DBV Technologies.

Jim?

SCIUTTO: Well, in just hours, the policy that kept some asylum seekers away from the southern border expires. That has U.S. border towns preparing for an even bigger surge of migrants. We'll be live once again at the border.

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