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Writers Reach Tentative Deal With Hollywood Studios; Can Republicans Avert Shutdown?; Democrats Call On Senator Bob Menendez To Resign. Aired 1-1:30p ET

Aired September 25, 2023 - 13:00   ET

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

[13:00:42]

JIM SCIUTTO, CNN HOST: Defiant and determined to stay in office. Democratic Senator Bob Menendez says he will be exonerated after he was indicted on bribery charges, as members of his own party are calling for him to resign.

Running out of time, money and options, now House Speaker Kevin McCarthy is ramping up the pressure on hard-liners in his own party, as the government moves towards a potential shutdown.

BRIANNA KEILAR, CNN HOST: And we have a tentative deal. The writers strike that has paralyzed Hollywood for months might finally be over, so what comes next?

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

SCIUTTO: He's not going anywhere.

A short time ago, Democratic Senator Bob Menendez made his first public comments about the federal bribery charges he is now facing. And amid mounting calls from his own party for him to resign, the embattled New Jersey senator said this:

(BEGIN VIDEO CLIP)

SEN. ROBERT MENENDEZ (D-NJ): I understand how deeply concerning this can be. However, the allegations leveled against me are just that, allegations.

I recognize that this will be the biggest fight yet, but as I have stated throughout this whole process, I firmly believe that, when all the facts are presented, not only will I be exonerated, but I still will be New Jersey's senior senator.

(END VIDEO CLIP)

SCIUTTO: This is actually the second time he has faced corruption- related charges just in the last 10 years. The prior federal indictment resulted in a mistrial and his acquittal.

CNN's Kara Scannell has been following the story. Kara, Senator Menendez, he leaned into his legislative record in those

first remarks and, of course, as you heard him say, said he will be exonerated. Does he have a case?

KARA SCANNELL, CNN CORRESPONDENT: Yes, Jim, so the senator has been charged with a three-count indictment alleging that he was paid hundreds of thousands of dollars in cash and gold bars and in a convertible Mercedes-Benz that his wife had received all in exchange for helping three New Jersey businessmen and aiding the government of Egypt.

And this is where the senator leaned in today in these first public remarks. He talked about his record in the Senate on Egypt, saying that he's been tough on Egypt, that he has fought them on human rights abuses and he has held up some of this military aid that is referenced in the indictment.

He also addressed the hundreds of thousands of dollars in cash that the FBI found in envelopes stuffed in a jacket bearing his name when they searched his home last year. Take a listen.

(BEGIN VIDEO CLIP)

MENENDEZ: Remember, prosecutors get it wrong sometimes. Sadly, I know that.

For 30 years, I have withdrawn thousands of dollars in cash from my personal savings account, which I have kept for emergencies and because of the history of my family facing confiscation in Cuba. Now, this may seem old-fashioned, but these were monies drawn from my personal savings account, based on the income that I have lawfully derived over those 30 years.

(END VIDEO CLIP)

SCANNELL: Now, there are growing calls from Democrats and many in New Jersey for him to resign, and the senator saying that he has not lost the confidence of his constituents.

He pointed to a number of them in the room today who he brought in here to support him. Jim, I mean, this -- he had this press conference or this -- he gave his statement in a building in Union City, New Jersey. This is where he grew up and where he first started his political career, today in the same place, doubling down that he is not going anywhere -- Jim.

SCIUTTO: So, formally, what happens next in this case in terms of court appearances, his chances to respond?

SCANNELL: Yes, so he will appear in federal court in Lower Manhattan on Wednesday, along with his wife and those three other co-defendants.

That is when -- it's the first time he will face these charges in a court of law. It's possible he will be arraigned on those charges. Seeming clear today he's expecting to plead not guilty. And then, from there, it begins the usual process, which could take and likely take several months to play out.

And that is going to intersect with this question of, will he run for reelection? He's up next year. And this is a question he did not answer today, when reporters shouted the question at him -- Jim.

[13:05:08]

SCIUTTO: Well, wouldn't be the first time we saw an indictment an indictment and someone still runs for office.

Kara Scannell, Union City, New Jersey, thanks very much -- Brianna.

KEILAR: All right, let's talk about this more now with former federal prosecutor CNN legal analyst Jennifer Rodgers and Spectrum News anchor and CNN political commentator Errol Louis.

Errol, what stood out to you about this press conference that the senator held?

ERROL LOUIS, CNN POLITICAL COMMENTATOR: A lot of what stood out for me was what he did not talk about.

He was very emphatic and said that, while it might seem strange to the rest of us, it's perfectly normal, or at least acceptable, that he would hide half-a-million dollars in his home. He just didn't believe in the banking system. He's the son of immigrants. You never know what might happen was essentially what he said.

What he did not get into was the other people in that caption, including his wife. It's not the U.S. v. Robert Menendez. It's v. Robert Menendez, et al, including his wife, who is listed as having done some very damning things with him in that indictment.

And he didn't touch on any of that, alleged efforts to pressure prosecutors to go easy on some of his business associates or their employees, efforts to maybe sway who he was nominating to become a U.S. attorney in New Jersey.

There's a lot that's discussed there, including those famous gold bullion, those gold bars that literally have the serial numbers of one of the businessmen who are alleged to have bribed this family, the payments that were made to pay for their Mercedes-Benz. He didn't touch on any of that. And he didn't have to, obviously.

But I want to hear a whole lot more about that. The general posture of saying, I'm being politically persecuted is one thing, but that's not really what's in the indictment. The indictment is -- alleges some very specific crimes that he's going to have to answer for both in court and to the public.

KEILAR: He did, Jennifer, specifically address the cash, saying it came from his personal savings and over the course of years based on income that was lawfully derived.

So hat happens with that? Will he have to prove that? Could that come back to bite him if that is not the case? JENNIFER RODGERS, CNN LEGAL ANALYST: Oh, it sure could, Brianna. He's

begging the government to do an unexplained wealth analysis to put up there what he makes as a Senator, what his investments bring in and property he has, et cetera, and then explain how he has that kind of cash just sitting around the house.

But Errol is right. If it were just the cash and you didn't have the treasure trove of text messages and e-mails and the Mercedes-Benz and the no-show job and the bank account they set up to take that money, maybe you get somewhere. But there's just a lot of evidence here, vastly more than there was the first time around.

So this is a very, very different and more dangerous case for Menendez, for sure.

KEILAR: Talk a little bit more about this. Why is this more dangerous? Why is there more evidence? Why is he in more peril than last time?

RODGERS: Well, they worked really hard to collect evidence here.

I mean, they had I think a wiretap on the text messages of Menendez's wife. And that just gave them the whole scheme. She was talking to the other defendants about what it was they wanted Menendez to do and how they wanted him to use his influence and then talking about what they were going to get because of it, and even some cover-up stuff.

They bought the Mercedes-Benz for them, effectively. And then as soon as they got a visit from authorities and they knew that they were under investigation, they tried to paper it over and say, oh, it's just a loan. We're going to pay you back for that Mercedes.

So, they just have so much evidence this time, and it's without the muddying of what happened last time, which was that the person bribing Menendez last time was actually a close personal friend of his with a preexisting relationship, which I think the jury kind of confused, was he doing what he did for him because of the friendship or because of the bribes?

This time around, there's no such issue. These are purely transactional arrangements. And you really can tell that by the communications that the government has obtained.

KEILAR: Errol, let's talk about the politics of this, because we have someone who through his wife and then through an intermediary shared sensitive non-public information about the U.S. Embassy in Cairo with an Egyptian government official.

This is very serious business. He was -- has temporarily stepped down as the chairman of the Senate Foreign Relations Committee. Politically, how do Democrats, aside from Senator Fetterman, who's called for him to resign, how do they kind of hold their fire at this point in time, when you have someone who's still in a position to do harm in this role in the Senate?

LOUIS: Yes, well, listen, putting aside the Senate, right there in New Jersey, the Democratic governor of New Jersey has called for him to step down.

[13:10:01]

And this is a world away from the last time Senator Menendez was in ethical trouble, when the Democratic establishment essentially lined up behind him and supported him. He's asking them -- and that was really a big part of today's press conference -- he's asking them to withhold judgment, hang in there with him a little bit more until more of the facts are known, and not just sort of throw him overboard.

But just as your question suggests, that poses political peril for the rest of the party, both in Washington and in New Jersey, and it's not clear that they're going to endure that kind of danger. The notion -- look, a big part of the case against Republicans, up to and including the race for president, is about ethics, is about having a government that's aboveboard and is not taking foreign bribes or otherwise distorting American policy to suit their own financial needs.

This flies in the face of that. He's a very inconvenient Democrat right now.

KEILAR: Yes, I should be clear, there are a number of Democrats who have called for him to resign, but the Senate is a different story, and there are a lot of people holding their fire in his party there.

Errol and Jennifer, it's so great to have both of you take us through this. Thank you.

LOUIS: Thanks.

KEILAR: Jim.

SCIUTTO: Today, House Speaker Kevin McCarthy is again pushing back on members of his own party, warning House hard-liners that shutting down the government in five days would be a big mistake.

It comes as we're learning new details about the White House's strategy this week to ramp up pressure on House Republicans behind all this. President Biden and top aides plan to repeatedly hammer home what's at stake from millions of Americans and emphasize that a handful of Republican hard-liners would be entirely to blame.

Here is Transportation Secretary Pete Buttigieg on CNN's STATE OF THE UNION."

(BEGIN VIDEO CLIP)

PETE BUTTIGIEG (D), FORMER MAYOR OF SOUTH BEND, INDIANA: The American people don't want a shutdown. From what I can tell, the Senate is ready to go, the administration is ready to go.

House Republicans need to come to their senses and keep the government running.

(END VIDEO CLIP)

SCIUTTO: CNN's Melanie Zanona, she's on Capitol Hill, been following this latest shutdown threat.

So, I feel like I have asked you this question before, not just the last few days, but in previous cycles like this. Are they getting any closer? Is he going to get to the point where he has the votes?

MELANIE ZANONA, CNN CAPITOL HILL REPORTER: Jim, they are nowhere closer to avoiding a government shutdown, even though we are closer to that looming deadline on September 30.

Right now, Speaker Kevin McCarthy's plan is to pass as many individual long-term spending bills as possible this week. That has been a demand of the far right. And the hope is that that will build some goodwill with those conservative hard-liners and that they eventually will rally around a short-term conservative plan to keep the government open.

But there are a couple hurdles with that plan. First of all, it's unclear whether Republicans even have the support to pass either long- term or short-term spending bills. And, second of all, even if they do, those bills are dead on arrival in the Senate.

And, meanwhile, now you have former President Donald Trump openly calling on Republicans to shut down the government if they don't get everything they want.

So, now Kevin McCarthy out with his own message and really trying to ramp up pressure on his own members to fall in line. Take a listen.

(BEGIN VIDEO CLIP)

REP. KEVIN MCCARTHY (R-CA): Well, you have to keep the government open. I mean, if people want to close the government, it only makes them weaker.

Why would they want to stop paying the troops or stop paying the border agents or the Coast Guard? I don't understand how that makes you stronger. I don't understand what point you're trying to make. We have got a border that's wide open today. We will say it's getting worse each month under Joe Biden.

We have got now border agents you saw this morning being bloodied. Why would you want to stop paying those individuals? I couldn't understand somebody that would want to do that.

(END VIDEO CLIP)

ZANONA: Of course, one way out of this mess is for Kevin McCarthy to work with Democrats.

Over in the Senate, Chuck Schumer has already taken steps to try to advance their own short-term spending bill that would include something like Ukraine aid and disaster funding. And Kevin McCarthy has not yet committed to putting a bill like that on the floor.

But, if he did, Jim, he could face a right-wing rebellion and face an immediate vote to try to remove him as a speaker. So, for Kevin McCarthy, eight may ultimately come down to a choice between keeping the government open or keeping his speaker's gavel.

SCIUTTO: It's a great point.

Melanie Zanona, thanks very much -- Brianna.

KEILAR: After 146 days, writers and the major Hollywood studios have reached a tentative deal. So the strike that has frozen production on TV shows and movies appears to be almost over. Will the actors make a deal next?

Plus, Southern border cities pleading for help, as federal officials tell CNN the number of migrant crossings will remain high. We're going to tell you why coming up.

And who doesn't love a good sample? A NASA spacecraft has brought one back from an asteroid, and it could hold clues about the birth of the solar system.

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[13:18:55]

KEILAR: Coming soon, Hollywood writers back at work.

In fact, the 11,000-plus members of the Writers Guild of America could get the green light tomorrow to return to their jobs after the union finally reached a tentative deal with the studios over the weekend. And guild leaders call it exceptional.

Overnight, there was a moment of celebration captured by "The Los Angeles Times, "

(BEGIN VIDEO CLIP)

STRIKERS: Thank you, NegCom! Thank you, NegCom!

(END VIDEO CLIP)

KEILAR: All right, if you didn't make that out, they are chanting, "Thank you, NegCom," which is short for Negotiating Committee.

So, if members approve the deal here, this would end the union's second longest strike ever, more than 145 days that has cost the industry an estimated $5 billion.

CNN's Camila Bernal is in Los Angeles. She's been following this all along.

Give us the details, Camila, of this tentative deal.

CAMILA BERNAL, CNN NATIONAL CORRESPONDENT: So, Brianna, so far they have not been made public, but every writer that I have talked to so far has told me, look, we trust our committee. We trust the WGA. And so they believe that they're getting the things that they fought

for, including higher wages when it comes to streaming, and, of course, artificial intelligence. They were very concerned about A.I. and really not knowing what comes in the future.

[13:20:08]

But, according to sources that spoke to CNN, that was actually the final sticking point, artificial intelligence. So, we know that there is some sort of progress on that end. What happens here is that they're going to have to figure out what the language is going to look like. That's what the WGA is saying.

They're dotting every single I. And after they do that, then there's going to be likely a vote tomorrow by the leadership. And, after that, it then gets made public. And we're all going to be able to see exactly what's in this contract.

I want to read part of the statement from the WGA. And here's what they're saying: "What we have won in this contract, most particularly, everything we have gained since May 2, is due to the willingness of this membership to exercise its power, to demonstrate its solidarity, to walk side by side, to endure the pain and uncertainty of the past 146 days."

It really has not been easy for the industry, for many here in Hollywood and beyond. It's just been tough over the last 146 days. So people are just so thankful and so excited to see this happen. One of the writers I talked to told me: "I'm ready to go back to making magic, to telling stories."

So that's the kind of thing you're hearing in Hollywood today, Brianna.

KEILAR: What about the actors? The Screen Actors Guild has been on strike now, 160,000 members. They have been striking at the same time here.

BERNAL: Yes, and this is what makes it really hard to go back to normal, because, even if there is a deal that's made by the WGA, the actors are still on strike.

So it means that a lot of people are really not going to be able to go back to work, the WGA telling its members to go out and support the picket lines for SAG-AFTRA. So, SAG-AFTRA also released a statement saying they're waiting to see what exactly is in the deal, but also saying that they're going to fight for their own demands and the things that they're looking for.

So it's going to be a tough negotiation that end as well. But many do believe that this deal with the writers will likely encourage or speed up the process with SAG-AFTRA. We will have to wait and see what happens. But for a lot of people in the industry, it means waiting even longer to really go back to work, Brianna.

KEILAR: All right, Camila, thank you so much for the very latest there -- Jim.

SCIUTTO: All right, let's get a perspective now from in front of the camera.

Josh Rhett Noble is an Atlanta-based actor, a member of the actors union SAG-AFTRA.

Josh, good to have you on this afternoon.

JOSH RHETT NOBLE, ACTOR: Pleasure to be on. Thank you, Jim.

SCIUTTO: So, the writers and actors had similar issues here that they have been striking for. One is for better compensation from streaming, another really on technology, your image getting stolen, used in 1,000 different places, or A.I. taking over the job of writers.

Based on what -- and, granted, there's a lot we don't know -- but based on what of the deal that writers appear to have struck, does it seem that the producers have largely met your demands or willing to?

NOBLE: Well, as I don't speak officially for SAG-AFTRA, but, obviously, as a member, I will say that the feeling amongst us, the members, is that this is a good sign.

I feel like it's something that we have been waiting for, obviously, while we have been supporting the WGA. This seems like, OK, maybe, at this point, we could go back to that negotiating table and figure out something that's going to work for everybody, because we all want to work. That's all anyone wants to do. We just want to be fairly paid and to work.

SCIUTTO: Yes.

Can you tell us how, just so folks at home understand -- because terms like A.I., it gets thrown around about everything that you talk about these days. But can you explain how A.I. technology has impacted your work, compensation, and your colleagues? Like, what's the real worry here?

NOBLE: I think one of the biggest worries is, especially with background actors -- this was mentioned during negotiations in the past -- is scanning our likeness and then reusing you in perpetuity, which obviously means forever, and being paid once.

And that is something that seems completely outrageous to me. And I think one of the other big misconceptions about the strike itself is that all the actors that you see on your television screen, at the movie theater, that we're all millionaires and we're just really hungry for more money.

And that may be the case for the 1 percent, but for everyone else like me and so many other middle-class actors, we just want to work, we want to make a living wage, and we want to make enough to have health insurance. That's it. And we don't want the art to be lost by artificial intelligence, because the art is human. It's us. It's interaction. It's connection. And that, to me, is a

scary concept, where it's suddenly only no longer human, and it's no longer real.

SCIUTTO: Yes.

The image piece, I have heard about this, is, you do one spot, then, all of a sudden, you get calls saying, hey, I saw you in a video game. What was your face doing in the back of the crowd? It's a real thing. It's happening right now.

NOBLE: Yes.

SCIUTTO: You're a TV actor, I think we have a clip of you from the show "Monarch."

[13:25:05]

Another issue here -- right, and we're going to play it.

(BEGIN VIDEO CLIP)

NOBLE: Dottie, Dottie, Dottie, the rumor making the rounds is that you're sick. That's why you're not performing.

UNIDENTIFIED ACTOR: She said no more questions.

NOBLE: That you have got cancer, that you're even beyond the doctors' help.

UNIDENTIFIED ACTOR: Now I'm saying no more questions.

(END VIDEOTAPE)

SCIUTTO: Wow. You took a punch for being a reporter, man. I got a -- I can't stand close to you at events like that.

NOBLE: Better watch your back.

SCIUTTO: On the streaming issue, see, that's another one, right, because everybody at home watching right now, they're like, oh, yes, I'm streaming, and I will bet you the actors, they must be making out great from all these new shows and so on.

But tell me what the reality is.

NOBLE: The reality is that so much of the art that's being consumed by the consumer is now streaming. So it's Netflix. It's Hulu. It's Tubi.

Now, if I have a show that airs on, let's say, NBC, FOX, et cetera, we know what those residuals are going to be because they can track how many times it's reaired, et cetera. We are still with SAG-AFTRA on an -- honestly, an ancient contract for streaming that hasn't really changed over the last decade.

And, because of that, we don't know how many times something is being watched or streamed that we're on, and the compensation is not equaling the amount of people consuming that product. And that's all they want. It's just -- it's literally just wanting to be paid for your work, the same with the writers.

It seems very elementary when you get down to it, but that's it.

SCIUTTO: Yes.

NOBLE: It's just fair wages and equal pay. In 2023, we're still saying that, equal pay, equal pay.

SCIUTTO: No, I get it. Now, my producer's giving a story of someone who had a small part on "The Office," gets paid more from that than a major part on streaming, in part because of residuals.

Josh Rhett Noble, we wish you good luck. Hope you and your union come to settlement too as well.

NOBLE: Thank you so much. And thank you for shedding light on what we're going through. We appreciate it.

SCIUTTO: Happy to -- Brianna.

KEILAR: Still ahead: Could a new deal with Mexico help slow down the number of migrants crossing into the United States every day?

And the Alabama dockworker attacked in a brawl that drew national attention now speaking out. Hear his story for the first time.

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