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Escalation In Gaza: Ground Offensive And Evacuations Underway; US Citizens Among 7,000 Foreign Nationals Evacuating Gaza; Israeli Airstrikes Persist As Evacuations Ramp Up; Fierce Urban Combat In Gaza City As Israeli Forces Advance; White House Concerns Rise Over Growing Civilian Deaths In Gaza; Jordan Recalls Ambassador, Calls For Ceasefire In Israel; Federal Reserve Maintains Interest Rates Amid Economic Assessment; Trump Organization Accused Of $168 Million Savings Through Fraud. Aired 2-2:30p ET

Aired November 01, 2023 - 14:00   ET

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

[14:00:00]

BORIS SANCHEZ, CNN HOST: You're watching CNN News Central, I'm Boris Sanchez with Jessica Dean evacuations in Gaza have begun as Israel's ground offensive ramps up. The first group of four nationals has gotten out of Gaza and entered Egypt and that group according to the State Department does include some Americans. Here was a spokesperson just moments ago.

(BEGIN VIDEO CLIP)

MATTHEW MILLER, DEPARTMENT SPOKESPERSON: As a result of these efforts an initial group of foreign nationals including US citizens Departed Gaza through Rafah today and we expect exits of US citizens and foreign nationals to continue over the next several days. We want to make sure we can get US citizens and their family members out as safely as possible.

(END VIDEO CLIP)

SANCHEZ: A total of about 400 Americans and their families are among the roughly 7,000 for national seeking to leave.

JESSICA DEAN, CNN HOST: Some injured Palestinians are also making it through to hospitals in Egypt. You see there a long line of ambulances lined up near the Rafah crossing. But as these evacuations ramp up deadly Israeli airstrikes continue. One in northern Gaza yesterday hit the crowded refugee camp of Jabalia. Israel says the attack targeted a Hamas commander who was behind the October 7th terrorist attacks.

And today a second explosion rocking that camp. The IDF just confirming it was another Israeli strike. We have global coverage for you. We begin with Melissa Bell in Cairo. Melissa tell us the status of these evacuations, walk us through who's made it out of Egypt, who's eligible and who's still waiting.

MELISSA BELL, CNN PARIS CORRESPONDENT: Well just a short while ago, Jessica, we'd heard that 361 foreign and dual nationals had made their way through the Rafah crossing. Just short of the 491 that had been planned to get out today. What we've been hearing from Egyptian officials is that that may be because either some of those who were pencilled to come in, whose name was on the list, didn't make it to the crossing or simply refused to cross because their family members weren't on that list.

I think that's an important reminder of just how difficult this process is going to be and full with chaos and complications over the coming days. Still those foreign nationals that first group that I mentioned of 391 include Australians, Austrians, British, French, Italian, Jordanian, Saudi citizens and as you just heard a moment ago. Apparently they've been joined by the very first American nationals to make their way through the Rafah crossing and really that's been a remarkable development when you consider that this group of some 7,000 by certain estimates of foreign and dual nationals had been trapped inside Gaza ever since Israel announced its total siege.

Many of them had moved southwards when they'd heard the Israeli order to evacuate because of the bombing that was new in the north of the Gaza Strip. They evacuated, the gate had been closed and suddenly this breakthrough in these negotiations this morning. They've been mediated by Qatar and they've been extremely complex. I think it's important to remember that you're talking about negotiations between Israel, Egypt, Hamas, the United States, Qatar, essentially many different parties not necessarily speaking to each other and with many different conditions and difficulties and priorities along the way.

Still for the families of those either still trapped inside or those who've now made their way-out. Tremendous news and really something of a breakthrough. We simply hadn't expected it earlier this morning. It's come very suddenly and what we see are very encouraging signs that this Rafah crossing will remain open. We understand that the deal will involve the extraction, the ability to leave for all foreign and dual nationals that are still inside. And I think it's important to mention also that a separate group of Palestinians this time have been allowed out of the Gaza Strip for the first time since the war began. Some of those most severely wounded that are now being evacuated to a field hospital and we understand that there will be more to follow.

SANCHEZ: Melissa Bell in Cairo. Thank you so much for that report. Let's take you to now to Sderot, Israel with CNN's Nic Robertson. So, Nick what more have we learned about that second blast at the Jabalia camp? The, the IDF now taking responsibility for it.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: These are these are details I have to say that I that I don't have at the moment since stepping up here in front of the -- in front of the camera. So, I'm gonna have to defer till I can get that information in front of me here.

SANCHEZ: Sure, Nic. Bring us up to speed with what was happening there and specifically around the area of Jabalia after the second blast.

ROBERTSON: Yeah, we know from the commander of the unit on the ground, who's leading the unit on the ground. He says his forces are now at the gates of Gaza City. We've also heard in the last hour or so from the defense minister who said there is actually fierce urban combat underway inside Gaza City.

[14:05:09]

So, describing a very intense battle there. The units that are in there, one of the units, we know the Givati Brigade, they have had specific training for, -- for the combat environment. But the Defense Minister also speaking about anti-tank weapons being used against the troops. The IDF earlier today, saying that 15 soldiers had died on Tuesday. They have updated that figure later today, saying so far now 16. IDF soldiers have died. That appears to be since this current incursion began. Three hundred and twenty-eight, they said earlier today, had died since the 7th of October.

We know that some of those casualties coming in are blast casualties, victims of attacks that sound very much like the type of fighting that the defense minister is speaking about - anti-tank weapons used against amour. We know that the troops are moving in tanks. We know that they're moving in armoured vehicles. And of course, we will get you those latest details from the IFC about the Jabalia, the second Jabalia, very shortly.

DEAN: Right now, Nic Robertson on the ground in Israel. Let's go back now to the White House where MJ Lee standing by. And MJ, what more are you learning about the U.S. departures and the U.S. role in this deal that was brokered by Qatar?

MJ LEE, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, we certainly expect that the release of the foreign nationals from Gaza will take place in stages. We understand that a small number of Americans could end up being processed and ultimately exit today. And that more will follow in the coming days. And ultimately, if everything goes well, U.S. officials believe that 5000 people or upwards of 5000 people could ultimately end up leaving. Remember the State Department had previously said that there are some 400 American citizens in Gaza trying to leave. And that there were an additional 5000 other foreign nationals that were also trying to leave the strip.

This deal, of course, has been weeks in the making and has been incredibly complicated. Conversations between multiple parties. And one thing that we are learned today was that one of the demands that Hamas had made was for some of its own fighters to be released from Gaza as part of the group of injured Palestinians out that are going to be leaving the strip. And that that demand had been rejected. Of course, there were complications and complexities coming from the Egyptian side as well. Concerns about people, Palestinians being sort of permanently displaced and staying in Egypt.

And we also know that as the process unfolds of people entering Egypt, authorities there are very keen on making sure that there is a thorough vetting of every person that is going to enter the country. So, needless to say, there is a huge sigh of relief that this deal has been struck. But one thing that this is not, just to emphasize, is a release of hostages. Those conversations are still ongoing. And obviously, there's not been a breakthrough on that front yet.

DEAN: Still, hundreds of hostages, including children, are being held by Hamas right now. MJ, talk about the concerns in the White House. You have some new reporting about the growing number of civilians that are dying inside Gaza. What are you hearing about that?

LEE: Yeah, I'm told that there is a huge amount of concern within the administration about the number of -- growing number of civilian deaths in Gaza from this conflict. We have seen IDF strikes targeting areas where there are many, many civilians. The death toll has only continued to climb. And that concern was really on vivid display yesterday with the strike that hit this refugee camp. But what is notable is that even today, just now on Air Force One, White House spokesperson John Kirby declined to directly criticize any of Israel's military operations, including this decision to strike this refugee camp. It just goes to show the -- sort of this tightrope that this administration and White House is trying to walk.

It has said all along that Israel very much has a right to defend itself and that the U.S. is really not involved in can't dictate any of the specific military operations and decisions that Israel is making. But I do think we are starting to see this White House confront the question of how tenable it is to continue saying that Israel is trying to minimize civilian casualties. When I think a lot of people see the images that are coming out of Gaza and say it is simply just not true. That this is at sort of the principle that Israeli forces are adhering to. So, that coupled with the fact that administration officials recognize that support for Israel could begin to erode in the coming days and weeks. All of these things make this entire situation incredibly politically complicated for this White House

[14:10:09]

DEAN: MJ Lee at the White House for us. Thanks so much.

SANCHEZ: Let's discuss with the top Israeli official now. Tal Heinrich joins us. She's a spokesperson for Israeli Prime Minister Benjamin Netanyahu. Tal, thank you so much for being with us. I want to start with the second blast at the Jabalia refugee camp. It was confirmed to be an Israeli airstrike. The second one in 2 days in that area. The first one, we understand, wounded or killed several hundred civilians. Could you provide more information about the second strike and exactly who the IDF was targeting?

TAL HEINRICH, SPOKESPERSON FOR ISRAELI PM NERANYAHU: No, unfortunately not, Boris. I cannot provide any information about operational military activity that is happening right now on the ground in Gaza, nor can I provide any information about military strategy moving ahead. What I can tell you is what the IDF spokesperson unit released yesterday, and that is that Israel targeted a top Hamas commander who was hiding, along with other many Hamas terrorists, in a massive terror tunnel complex in that area. This is the only reason why Israel operated there. We said that we will get to the perpetrators of the October 7th massacre, and we mean it.

We will get to them one after the other. We want to minimize civilian casualties as we do that, but as you know, in every war since the dawn of history, there are unfortunately tragedies and civilian casualties. But I was listening to your reporting earlier and let me just ask you this. You know that there were more German civilian casualties in World War II than American or British? That doesn't mean that the Germans were the good guys, right, and that the allies were the bad guys, right?

We're talking about a Jihadists Nazi ideology that has to be eradicated. We're facing, we're dealing with pure evil here, and this is a matter of life and death to Israelis. It is that serious.

SANCHEZ: Tal, I understand you can't expand on ongoing IDF operations. We were told yesterday by an IDF official that we would get specifics on Ibrahim Biari. He was that senior Hamas commander that the IDF said was killed in the first strike on Jabalia. When will that evidence be shared?

HEINRICH: Well, that is a question for the IDF spokesperson, and our military press will decide when is the right time to share this information. But I can tell you that we are not targeting anyone else in Gaza but civilians. Hamas is cynically, but rather terrorists, of course. Hamas is cynically using civilians as human shields in Gaza. They're hiding underneath civilian urban structures such as hospitals and youth centers and schools. And of course, we're not targeting them. We want to minimize the civilian casualty, and Hamas are the ones who are putting them in harm's way. We called on them to evacuate from the north for this exact reason.

SANCHEZ: Do you know if Prime Minister Netanyahu has spoken to President Biden since the strikes in the refugee camp?

HEINRICH: Well, we are communicating with the White House on an hourly base. I can tell you about the specific time of the recent phone call between the Prime Minister and President Biden. I cannot give you the details right now.

SANCHEZ: Sure. I do want to pivot to the deal that was struck to move certain Palestinians and foreign nationals out of Gaza. Did the IDF effectively agree to a ceasefire in the Rafah border crossing in that area? Was that part of the deal?

HEINRICH: Again, I cannot say anything in that respect. But what I can tell you, Boris, is that international pressure, and also international media pressure is working against Hamas. This is exactly what we should be doing, exerting pressure on Hamas. Every time that Israel takes the fire for Hamas' own doing of double war crimes against Israeli civilians and Palestinian civilians, it serves their cause. So, we need to mount, to ratchet up the pressure on Hamas because it is working in that respect of the report that you just mentioned, and it is also working in the respect of the hostages.

This is why they released 4 hostages so far. So, we need to ratchet up the pressure on Hamas.

SANCHEZ: On the broader question of more Gazans getting out of that area, many of your neighbors in the region have been opposed to allowing Gazans in. But would you say that you, your government would be open to striking a deal that would let more people in Gaza, foreign nationals and others who want to leave the area, to letting them out? Would you be in favor of that kind of deal?

HEINRICH: I can tell you that our government is communicating with international partners in such respect. And I cannot expand further on that. But we want to see civilians out of harm's way. This is why we evacuated communities in the south and the north of Israel. This is why we called on Palestinians in the northern Gaza Strip to evacuate to safer havens where humanitarian aid is waiting.

[14:15:00]

What we need to do so that less people would suffer and would be caught in harm's way is to ratchet up the pressure on Hamas. If you remember in the first days of the war, there was another attempt to let foreign nationals out of the Rafah border crossing, but Hamas were the ones blocking their way. So, if international pressure will mount on Hamas, this will help everyone, Israelis and civilian Palestinians alike.

SANCHEZ: Tal, I want to ask you about Israel's relationship with Jordan, because Jordan announced today that it is immediately recalling its ambassador to Israel. They want to see a ceasefire. First, what's your response? And second, are you concerned that Israel's relationship with an important neighbor like Jordan is at risk?

HEINRICH: So, I will say just that, that regional players know that Israel that -- will eliminate the terror threat of Hamas will also serve their own interest in the region. And regarding a ceasefire, you see there was in fact a ceasefire on October 6th. Then Hamas broke it on October 7th when they butchered, raped their way through our communities here in Israel and started this war basically. And there will be a ceasefire again once Hamas is eliminated and once the hostages will be back home safe. Right now, a ceasefire is not negotiable before we reach that goal.

SANCHEZ: On the question of what happens

(CROSSTALK)

HEINRICH: Because it basically means that they can get away with what they did.

SANCHEZ: -- Yeah. On the question of what happens if the IDF succeeds in eradicating Hamas, is there a plan for what happens next in Gaza in a post-Hamas world?

SANCHEZ: So, Boris, there are different contingency plans. We are discussing them with international partners, but it is very, very premature to discuss them right now because you see it's like talking about a Marshall Plan before the Battle of Stalingrad. It's very premature. First, your evil must be eradicated.

SANCHEZ: Tal Heinrich, thank you so much for the time. We appreciate you sharing your perspective with us. HEINRICH: Thank you.

SANCHEZ: Of course. Still plenty more news to cover on News Central, including a big decision by the Federal Reserve on interest rates. We'll bring you the details in just moments. Plus, Donald Trump Jr. expected to be the first of 4 Trumps to testify in the civil fraud trial surrounding his family's empire. Is he going to take the stand today? What is that testimony going to be like? We'll take you live outside the courthouse in just moments. CNN News Central, we'll be right back.

(COMMERCIAL BREAK)

[14:21:32]

SANCHEZ: The Federal Reserve deciding to leave its finger on the pause button for the second time in a row, not increasing interest rates as the nation's economy continues to absorb the effects of past hikes. CNN's Vanessa Yurkevich joins us now with more. Vanessa, the Fed keeping interest rates steady, what does that say about the U.S. economy?

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: The second pause in a row, the third in the last year, and here's what the Fed is saying about the economy, saying that economic activity has been expanding at a strong pace. Job gains have moderated in recent months but remained strong. That is a nod to some of the strong economic data we have seen in the past couple weeks. But right now, the Fed is in a rest and assess moment. They want to see what the previous 11 rate hikes are going to do to the economy.

But as we know for everyday Americans, if the Fed raises rates, that increases borrowing. So, we're looking at right now mortgage rates nearly topping 8%. Any new car loans, student loans, credit cards, Americans are feeling the pain of higher borrowing costs. So, the Fed has obviously taken that into account, at the same time pointing to better than expected, better than expected data we've seen, like GDP, stronger job growth and continued consumer spending. Taking those together, they still feel like this is a moment to pause.

Now, consumers, though, have how they're feeling about the economy, which may look a little bit different. We know that despite the fact that consumers are spending, they're putting a lot on credit cards. And that is one of the ways that folks are still grappling with this high inflation. And also, for three months in a row now, Boris, we have seen consumer confidence fall. So those are indicators that Americans are still grappling with these higher prices. Now, the Fed is going to be meeting again in December. In their September meeting, they have explained that they are going to bake in another hike at some point this year.

That December meeting will be the last opportunity, Boris, for them to do that as they are trying to hit this soft landing and get inflation back to that 2% target that they're looking for, Boris.

SANCHEZ: Yeah, it's been a difficult process to get inflation back down. Markets, though, look to be responding well to this news. We'll keep an eye on them. Vanessa Yurkevich, thank you so much. Jessica.

DEAN: A banking expert testified in a New York courtroom just a few moments ago that Donald Trump and his company saved more than $168 million as a result of fraud. The benefit coming by obtaining favorable bank loan terms that the New York attorney general claims were ill gotten. Let's get right to seeing a national correspondent, Brynn Gingras. She is outside that courthouse for us. Brent, walk us through the importance of this expert's testimony.

BRYNN GINGRAS: Yeah, Jessica, listen, the expert is essentially throwing out a number there saying it's calculated based on the interest rates that the Trumps received on those financial statements that were inflated. Had they not had those inflated financial statements, they wouldn't have gotten such a great interest rate and therefore they're able to calculate that number. But hearing that number is important, certainly in court, as the judge will be the one who makes a determination of how much the Trump organization may have to pay back as a penalty for this case.

[14:25:00]

So, we will have to see how that all plays out in court. Now, right now, the defense, once it gets picked back up after lunch, is going to continue its cross-examination of this witness, a witness that they didn't even want to take a stand, take a stand fighting that they were not an expert in this. But they said they have 3 hours of cross- examination, and they're about an hour into that. Then, after that is done, possibly, we may see Don Jr. take the stand in this case.

We did see the former president's eldest son walk into the courthouse, up the steps right here behind me. So, it's very possible he could take the stand. And when he does, of course, he's going to be asked questions about those financial statements, what his involvement was in preparing those financial statements, and essentially his involvement in the entire fraud scheme that the state alleges happened over the course of decades.

So, we're waiting to see if that testimony actually pans out today. If it doesn't, it could slide back just to tomorrow. And then, after that, we will see Eric Trump, who both of them are defendants in this case, key to the state's case because they, you know, lead the Trump Organization, took an expanded role of that as the president took over the Oval Office. So, certainly, a lot of questions will be coming up in the next few days as the Trump children take the stand and the former president himself next week. Jessica.

DEAN: Yeah, a lot more to come there, Brynn Gingrass. Thanks so much for that update. Still to come this afternoon, Senate Majority Leader Chuck Schumer is reversing course and says he will bring a resolution to the Senate floor that would bypass Senator Tuberville's months-long block on military promotions. Stay with us.