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New Inflation Numbers; Ukraine Claims Advances; Vance Vows to Block Nominees; Father of Kids in Jungle Speaks Out; New Accusations Against "Rust" Armorer. Aired 9:30-10a ET

Aired June 14, 2023 - 09:30   ET

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

[09:30:00]

RAHEL SOLOMON, CNN ANCHOR: 911 for help during a domestic disturbance last month. The Indianola Police Department told CNN they would not comment about the case.

Parents in Temecula, California, sounding off. That's after their local school board rejected a state-backed social studies curriculum and fired the district's superintendent in the process.

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UNIDENTIFIED MALE: The audience will be cleared. Deon (ph), that's your first warning.

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SOLOMON: So, that what you just saw there, that was the reaction after Temecula Valley School Board voted to fire the superintendent, Jodie McClay, even as parents and supporters chanted her name. The dismay came after the board rejected the curriculum in part over a discussion of gay rights activist and politician Harvey Milk. School officials say that the curriculum does not include Harvey Milk directly but refers to him in a supplemental resource for teachers.

And the Las Vegas Golden Knights, Stanley Cup champions for the first time ever. The Golden Knights dominated game five scoring a remarkable nine goals against the Florida Panthers. Captain Mark Stone tallied three of those, making him the first player since 1922 to net a hat trick in a Stanley Cup clinching victory.

Sara.

SARA SIDNER, CNN ANCHOR: All right, things are looking up because costs may cool down for you. The market opening this morning as the Fed gets ready to announce another key decision whether to pause interest rate hikes. Today's decision coming as we get new inflation data with the Producer Price Index. It shows wholesale inflation cooled once again, this time hitting below a pre-pandemic average, yes, 1.1 percent.

Joining us now, CNN chief business correspondent Christine Romans.

All right, I guess I have to start with this idea that perhaps the Fed may not raise interest rates again?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Well, when you see numbers like this, this shows that all of that Fed tightening is starting to work in the economy. A 1.1 percent inflation rate. This is factory floor inflation. So, this will get to the consumer eventually.

But this is even lower than the pre-pandemic average, the ten years before we had the pandemic. And it shows you that sticker shock is really starting to go away. So, this is really an important number and it comes after we saw yesterday, of course, the consumer prices also cooling. A little more elevated than this, but consumer prices are cooling. And the curve of the chart is just undeniable here. It's been 11 months in a row of cooling prices.

And when you look at this chart, Sara, you can see that, in fact, inflation now is not eating up your wage gains anymore. And that's an important point here. For a long time we had very good wage growth in America, but higher prices were taking all that wage growth away. That has finally changed here and finally you're getting a little more in your paycheck and not having to pay it out everywhere else.

SIDNER: I think that's really huge that the inflation will not be eating into your paycheck because it's now --

ROMANS: That's right.

SIDNER: At this low point.

I do want to ask you, what are the bets, what are the odds on whether the Fed raise the interest rate?

ROMANS: So, almost everybody thinks the Fed pause today, the Powell pause they're calling it, to assess all of this work it's done, all of these interest rate hikes that have been working through the economy.

Also you've got a banking system that just a few months ago was sort of rocking under these three bank failures because of higher interest rates. So, the Fed just takes a long here, a pause to assess what is happening overall. I'm sure it likes the inflation news it is seeing, but the job market is still quite strong. The housing market is starting to show some signs of strength again. The stock market is at a one-year high. So, there are some signals that the economy is still chugging along here and that, ironically, can be a concern for the Federal Reserve. So we'll be - I'll be looking today to see what does Powell say about next month and beyond and what the Fed does with rates.

SIDNER: (INAUDIBLE) for the Fed, but not for people who are looking for jobs.

ROMANS: Exactly. Exactly. Exactly.

SIDNER: So, there is that.

Christine Romans, always a pleasure. Thank you.

ROMANS: Nice to see you.

SIDNER: John.

JOHN BERMAN, CNN ANCHOR: Overnight, Russia launched a new barrage of missiles and drone attacks into Ukraine. Ukrainian officials say they intercepted 12 of the 20 attacks. One of the missiles that got through, though, struck the port city of Odessa. Three people were killed there and a dozen more injured.

On the ground in Zaporizhzhia, Ukrainians are claiming to have gained what they call partial success. Ukraine's top general said they are seeing both defensive and offensive fierce fighting there. This is all part of Ukraine's long awaited counteroffensive which is now in its early stages. CNN was the first U.S. network to travel with Ukrainian troops on the front lines.

CNN's Fred Pleitgen part of that team, back now safely, and joins us from Zaporizhzhia.

Fred, it's great to see you well. Why don't you tell us what you saw.

FREDERIK PLEITGEN, CNN CORRESPONDENT: Hi there, John.

Well, it certainly is fierce fighting that's happening out there on the front lines. We were sort of on the southeastern part of the very front line here in the southern Ukraine, and that's also the place, John, where the Ukrainians have made the most headway over the past couple of days where they've managed to take back from the Russians a couple of villages in that area and are pushing further south, trying to breach those very, very strong Russian defenses in those places.

[09:35:04]

Now they say that they have the manpower and the gear to do that. And they also say that they are moving forward. They are able to make some advances. But the going there is extremely tough. The Russians are firing back with what can only really be described as a wall of artillery fire.

When we were on the ground there, we heard artillery fire pretty much the entire time. The Russians really trying to hold the Ukrainians up that way. The other thing that the Russians are using is also their combat jets. And we had an air strike very close to where we were and we had to duck for cover ourselves.

Here's what happened.

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PLEITGEN (voice over): Still, the deputy brigade commander says his soldiers are just getting started.

Our counterattack will definitely be successful, he says. We believe in victory. We are moving forward towards our goal. We are advancing.

(END VIDEO CLIP) PLEITGEN: So, as you can see, he's saying they are advancing. But, again, those advances are really difficult to do. And the Ukrainians themselves are saying that the Russians are really putting up some pretty strong defenses out there. It's a sort of layered defense network that the Ukrainians will have to work their way through.

Of course, one of the things we have to keep in mind, John, is that the Ukrainians still have a long way to go. They want to make it all the way to the Sea of Azov to try and cut the Russian forces off from their supply lines to Crimea and, of course, also to regular Russian territory as well. They've gone a couple of miles. They still have a long way to go. And every inch there they say right now is contested.

And I think one of the things that really stood out to me is, obviously, you have these two sides going at it. Even the Ukrainians are saying that the Russians are putting up a really tough fight, John.

BERMAN: Frederik Pleitgen, yes, all the way to the Sea of Azov. People can see on our map, that means the Ukrainians need to get through the entire red territory there, all the way to that body of water toward the bottom of your screen.

Frederik Pleitgen, great to see you back. Terrific report. Thank you very much.

Rahel.

SOLOMON: All right, John, and coming up for us, Republican Senator J.D. Vance vowing to hold up President Biden's judicial nominations indefinitely. We'll tell you why.

Plus, a horrific scene in Japan. A teenage cadet arrested after allegedly opening fire on members of his own unit during a live fire training exercise.

We'll be right back.

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[09:42:01]

BERMAN: Happening now, Italy is mourning the loss of one of its most controversial public features. A state funeral for former Italian prime minister, and billionaire, Silvio Berlusconi, he passed away at the age of 86. He was elected prime minister three times. He served for nine years. Longer than anyone since Benito Mussolini. His career was marked by a series of political, financial and personal scandals, many of which landed him in court.

An investigation is now underway following a deadly shooting at a Japanese military training center. At least two people were killed, another was injured after a teenage cadet allegedly opened fire on members of his own unit during a live fire training exercise. The chief of staff for Japan's ground self-defense force condemned the shooting saying, quote, this is - this kind of incident should never happen in an organization that handles weapons. The cadet was arrested and the motive of the suspect still unclear.

At least 45,000 people have been evacuated as a cyclone barrels towards western India. Pregnant women and other vulnerable groups given priority. Officials pleaded with those who did not evacuate to stay inside their homes. The storm is expected to make landfall near the India/Pakistan border sometime tomorrow.

Rahel.

SOLOMON: All right, John, thank you.

And back here at home for us, some Republicans on Capitol Hill retaliating after Trump's indictment. Republican Senator J.D. Vance, from Ohio, vowing to hold up President Biden's judicial nominations indefinitely. He's calling on Attorney General Merrick Garland to commit to a new policy on prosecutions and what he called, quote, politically motivated law.

CNN congressional correspondent Lauren Fox on Capitol Hill now with reaction.

Lauren, how much of an impact could this actually have?

LAUREN FOX, CNN CONGRESSIONAL CORRESPONDENT: Yes, let's talk through exactly what J.D. Vance is doing here. He is arguing that he is going to slow down this process of confirming nominees for the Justice Department. But right now there are just two nominees in the pipeline. So, what impact could this actually have?

All he can do is really slow this process down. He ultimately can't stop nominees from being approved, but he can force Senate leaders to really burn time, burn valuable Senate floor time on these nominees. And that's exactly what he plans to do.

But all said, if there are two nominees in the pipeline right now, that's probably about two weeks of Senate floor time that could be eaten up by this process. Ultimately, he cannot stop these nominees all together. It's actually very different than what we are seeing from Tommy Tuberville, who is holding up about 250 Pentagon promotions right now with a hold because of policy that he doesn't like that the Pentagon is carrying out. That is a much more complicated process because usually Pentagon officials move through much more quickly, in part because they're just not political nominations.

In the case of the Justice Department, it's not unusual for a senator to have an issue with a particular nominee forcing leaders to burn that valuable floor time.

Dick Durbin, however, the chairman of the Judiciary Committee, said that this is certainly just a political move from Vance.

[09:45:06]

Here's what he said.

(BEGIN VIDEO CLIP) SEN. DICK DURBIN (D-IL): I think it's sad that they have taken this position. We should allow this case to move forward. Let justice find its conclusion. Start with the presumption of innocence and let the government produce evidence that convinces a jury, if it can.

Well, if you're in favor of law enforcement and the administration of justice, then not filling vacancies of judges doesn't help at all.

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FOX: And this is the retaliation of one Republican senator. But over in the House of Representatives there are a series of steps that lawmakers are considering, including trying to defund the special counsel's office, potentially defund parts of the FBI. All of that is going to take place in the House of Representatives. But we should note, even if they were to include that in appropriations process, once they send it over to the Senate, it's going to get struck (ph) out because Democrats control that chamber.

SOLOMON: Yes, Lauren, it's been really interesting to see the different reaction to the indictment from House Republicans versus Senate Republicans.

Lauren Fox, great to have you on Capitol Hill for us. Thank you.

Sara.

SIDNER: A miracle in the jungle. The father of four children, who first survived a plane crash, and then survived a month in the dense jungle, is talking to CNN. His children are recuperating in the hospital. And I want to show you some of the pictures that they have been drawing of their ordeal.

In the bottom left, just down there, you will see a dog that they named Wilson. That is a special rescue dog that belongs to the Colombian military. But here's the thing, they believe the dog found the children at some point, but, guess what, now he is missing and being searched for by soldiers.

CNN was also able to speak with the father of the children directly. He called their unlikely survival a miracle.

CNN's Stefano Pozzebon joins us live from Bogota with more on this story.

Stefano, what more did the father say about this incredible rescue?

STEFANO POZZEBON, CNN CORRESPONDENT: Yes, Sara, it was good to speak with the father. He, (INAUDIBLE), he's the biological father of the two youngest children and the stepfather of the two oldest ones. As I was saying, we were able to speak with him yesterday. It was the first interview he gave to any international media. And we were lucky to sit down with him and actually get to feel a little bit of his emotions.

He, for example, recounted that the flight on Friday, when he was allowed to take his children out of the jungle finally after looking for them for 40 days on a military helicopter. And this is how they actually got out. Take a listen.

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MANUEL RANOQUE, CHILDREN FOUND IN COLOMBIAN JUNGLE (through translator): The moment we found the kids, we started to see thunder and lightning bolts. We left at the right moment. Ten minutes later, and the helicopter could not have taken us.

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POZZEBON: So, thunder bolts, lightning, the rainy season in the Amazon, they really got out by the hair of the neck.

In talking about Wilson, Sara, we need to say that the Colombian army is saying that they will stay in the jungle to locate him. Yesterday we spoke with a general of the Colombian army who told us that 70 commandos are still in the jungle to locate the K-9 unit. That said, of course, the focus is now on the kids, and they are remarkable, incredible achievement of saying alive in the jungle for 40 days.

Sara.

SIDNER: Yes, he talked about it being part of their indigenous upbringing, which helped them survive in the jungle eating things like fruits.

Thank you so much, Stefano Pozzebon. I appreciate all of your reporting out there in Bogota.

John.

BERMAN: Investigators looking into the deadly shooting on the set of "Rust" are now accusing the movie's armorer of drinking heavily and smoking pot during filming. What her attorney is saying this morning.

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[09:53:03]

BERMAN: A new twist this morning in the aftermath of the "Rust" movie set shooting. Prosecutors said in a new court filing an armorer, Hannah Gutierrez-Reed, was likely hungover when she put a live bullet into the prop gun used by Alec Baldwin. That gun would later fire a live round during rehearsals, killing cinematographer Halyna Hutchins. Witnesses are also set to testify that Gutierrez-Reed was drinking heavily and smoking marijuana during filming.

CNN's Chloe Melas is with us with the very latest.

Chloe, what are you learning here?

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: Well, listen, you know, John, this filing was done on Friday. The special prosecutors have been building their case because there is this criminal trial that is looming. And remember, in April, they dismissed the involuntary manslaughter charges against Alec Baldwin. But this morning, Hannah Gutierrez-Reed's attorney telling CNN, quote, the case is so weak that they now have chosen to resort to character assassination claims against Hannah.

John, we've always been wanting to know, how did live bullets first of all get to the set in the first place and who loaded the gun? Was it Hannah? Was it the assistant director, Dave Halls? And how did they not realize that it was a live round? Alec Baldwin has always maintained that when the gun was handed to him that it was handed to him by Dave Halls and that he declared it a cold gun. So, clearly, the prosecutors building their case for this criminal trial that will be happening. Ad they also say, though, that they reserve the right to re-file criminal charges against Alec Baldwin, John.

BERMAN: What are you learning on that front, Chloe, because when they dropped the charges, or withdrew them, they said they reserve the right to do it again. Do they seem like they might be closer to that?

MELAS: So, in April, when they announced that they were dismissing temporarily the charges against Alec Baldwin, they said that new evidence had been presented to them when it came to the gun. So the gun, we have a picture of it. It's a Pietta Colt -- Long Colt 45. And they have been trying to figure out if the gun malfunctioned.

[09:55:02]

So, we know in this court filing on Friday that, you know, the gun, they say, and broke sere (ph) have been sent to the state's independent expert for further testing. If it is determined that the gun did not malfunction, charges against Mr. Baldwin will proceed.

I have extensively covered this case and what happened on the set of "Rust" in 2021. Alec Baldwin telling CNN at the time in an interview that when he pulled the hammer back that it went off, that he never pulled the trigger. And his legal team believes that this gun had been modified. And that because of the modifications, John, that this caused the gun to fire.

But, again, it really comes down to, how did a live round get to the set. And as we get closer to trial, clearly we all are going to be learning more.

BERMAN: Chloe Melas, thank you so much for bringing us up-to-date on this.

Sara.

SIDNER: This has never happened before. So, what happens after the historic federal arrest and arraignment of a former U.S. president? For Donald Trump it is clearer than ever he's on the attack.

Stay with us.

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