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Today: Boeing To Present Plan To FAA To Fix Safety Issues; WSJ: Trump Considering Advisory Role For Elon Musk If Reelected; Biden Weighs Letting Ukraine Strike Russian Soil With U.S. Weapons. Aired 7:30-8a ET

Aired May 30, 2024 - 07:30   ET

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

[07:30:00]

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Boeing is trying to prove its plan, so far, is a fix for the quality control issues highlighted after the Alaska Airlines door plug blowout that grounded the 737 MAX 9 nationwide for 19 days. Boeing stresses that it has already laid out clear assembly line instructions for workers, as well as training improvements for the tools also on the factory floor.

Notably, Boeing says it's now hounding suppliers to no longer ship defective parts. Remember, it was an issue with the fuselage built by the supplier called Spirit AeroSystems that caused Boeing workers to remove the door plug on the 737 that was ultimately delivered to Alaska Airlines. The door plug was put back but all of the bolts were not.

Boeing in, in general, just trying to fix its safety culture. And a report found that Boeing had gaps in the safety culture there -- something underscored by whistleblowers -- that has led to delays in certification and deliveries of planes.

We will be keeping an eye on what is in this new plan. Outgoing Boeing CEO Dave Calhoun also reportedly going to be in this meeting with the FAA administrator today, Kate.

KATE BOLDUAN, CNN ANCHOR: Yeah. We know that the FAA administrator said this report -- it's the beginning, not the end of the long road of getting back to where Boeing needs to be, he says.

It's great to see you, Pete. Let's see what Pete can get his hands on today in terms of that reporting -- John.

JOHN BERMAN, CNN ANCHOR: All right. A new report in The Wall Street Journal says that Donald Trump is considering and advisory role for Elon Musk, the Tesla CEO and faltering social media mogul. That is, if Trump gets back to the White House.

The Journal writes, "...the two men are developing a friendly rapport and talk on the phone several times a month as the election nears, the people familiar with their talks said. The pair have held discussions on immigration, technology and science, including the U.S. Space Force. Their views and interests have grown more aligned, the people said, with Musk calling Trump directly on his cellphone."

Joining me now is Cara Lombardo, deputy Wall Street bureau chief of The Wall Street Journal, who is one of many reporters on the byline of this story. Thanks so much for being with us.

So just talk to me first about the nature of this relationship.

CARA LOMBARDO, DEPUTY WALL STREET BUREAU CHIEF, THE WALL STREET JOURNAL (via Webex by Cisco): Yeah, John, thanks for having me.

And it's pretty striking. I mean, Trump and Musk historically, just a few years ago, were trading insults with each other. Now, as you said, they speak on the phone several times a month. Musk calls Trump up directly on his cellphone.

It's kind of interesting but not that surprising if you think about Trump. I mean, he's someone who is obviously drawn to wealth and power. Musk is one of the world's richest people. He oversees a sprawling business empire not only of Tesla but Twitter and SpaceX, which is a rocket company. So it's not surprising that Trump would be interested in getting to know Musk.

At the same time, Musk's politics have shifted rightward recently. He's tweeted about being frustrated with some of the directions in the Democratic Party. DEI initiatives, for example, are something he doesn't like. And migration, in particular, has really caught his attention as a major issue and has heavily criticized Biden about that.

BERMAN: So your reporting -- you say Trump is considering him for and advisory role if he gets back to the White House. What exactly does that mean?

LOMBARDO: It's interesting because we have blueprints for this actually. The advisory role -- our understanding -- and, of course the details aren't worked out -- this is all preliminary, but it would be something informal. That would be useful for Musk because it likely would not require him to walk away from his business dealings or wall them off.

In Trump's other first term, he had several business moguls kind of in his ear informally advising him on a variety of topics -- one which was billionaire investor Carl Icahn. In Carl Icahn's case, this was not an official role. It didn't require confirmation and he didn't have to walk away from his business dealings. So we expect it will be something like that if it comes together.

BERMAN: So if you've been listening to what Donald Trump has been saying on the campaign trail, one thing he really seems not to like, electric vehicles. He throws shade on EVs whenever he can. Elon Musk is pretty deep into electric vehicles here. So how does Elon Musk justify working with a guy who wants to sort of end his industry?

LOMBARDO: So it's a fascinating dynamic. I can't say that our reporting has fully unpacked that issue. What we know is that Trump and Musk have talked about EV tax credits. They've talked about Tesla on their calls.

As we know, Trump, on the campaign trail, has been tough on EVs. Musk, himself, has even made comments -- you know, anti-EV tax credits. He's kind of been a mixed bag when it comes to that issue over the years. So we can't quite parse that out yet but that will be something that I think people will be deeply interested in given the humongous impact that has on Tesla's business.

BERMAN: Yeah, it is a strange dynamic there.

So Musk -- who, granted, says a lot of things that aren't always consistent -- I believe he said he's not going to endorse in this election. I mean, is that going to change? Is he going to get overtly involved in supporting Donald Trump?

[07:35:04]

LOMBARDO: It's really interesting because this is not your typical billionaire who gives a ton of money and expects to influence policies. Like, it's not quite that directive a path. But there's a suggestion of a kind of behind-the-scenes dynamic, as you mentioned.

So our understanding is so far, he's resisted endorsing. He's resisted giving large sums of money to any candidate. But he is not only talking about this advisory role but also planning two projects on the side with a friend of his that have the goal of helping Trump win a reelection.

So one of those projects is a major data-driven project to lead out what they consider voter fraud -- obviously, an issue that Trump has talked about without evidence for a while. And another project is this series of salon-style dinner parties with influential business leaders that Trump and his -- sorry, that Musk and his friend Nelson Peltz, the investor, are arranging around the country. And the idea there will be to highlight what they see as shortcomings in Biden's administration rather than directly endorse Trump.

BERMAN: This is a really interesting article.

Cara Lombardo, thank you for coming on and sharing your reporting with us this morning. Appreciate it.

LOMBARDO: Thank you.

BERMAN: Kate.

BOLDUAN: A new warning from researchers this morning. Getting a tattoo may significantly increase the risk of developing lymphoma, a type of blood cancer.

CNN's Jacqueline Howard is looking into this new study and she's here with us now. Jacqueline, what are you learning?

JACQUELINE HOWARD, CNN HEALTH REPORTER: Yeah, Kate. The study looked at nearly 12,000 people in Sweden and it found that those who had tattoos had a 21 percent increased risk of malignant lymphoma compared with people who had no tattoos. And the researchers say that we do need more research in this area. It was just an associate that was found.

But they also pointed out that there was no evidence that having more tattoos led to an even higher risk. And they also point out that this is just, again, a correlation. It does not imply causation. So if you have a tattoo and you see this study, there's no need to panic.

The researchers say we need to look more into what could be possibly behind this association. They say maybe it's because the tattoo ink itself often contains carcinogenic chemicals. But again, more research is needed here, Kate.

So the main takeaway is that we just need more study in this space, especially because we know that here in the United States, 32 percent of adults have a tattoo. So any research related to tattoos, of course, will get a lot of attention, Kate. And the researchers say we do need more research in this particular area.

BOLDUAN: Interesting. Thank you so much, Jacqueline. Great to see you.

Coming up for us -- more for us -- a mayoral candidate was just assassinated in broad daylight; another candidate hospitalized after another armed attack. A closer look at the violence plaguing Mexico's upcoming elections.

And then there is this. True story. A man with a suspended driver's license shows up to court via Zoom -- down there -- he's right there -- where is he? He's driving in a car. You're going to want to hear what the judge has to say.

(BEGIN VIDEO CLIP)

JUDGE CEDRIC SIMPSON, MICHIGAN STATE JUDGE: Mr. Harris?

COREY HARRIS, IN COURT VIA ZOOM DRIVING ON SUSPENDED LICENSE: Hello?

SIMPSON: Are you driving?

HARRIS: Actually, I'm pulling into my doctor's office, actually. So just give me one second. I'm parking right now.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hey, angel. I'm coming, honey.

UNIDENTIFIED MALE: It really is a terrifying experience.

UNIDENTIFIED FEMALE: It is the stuff of nightmares. I'm thinking I'm going to die, and I thought that was it.

UNIDENTIFIED FEMALE: You can't see it but it's there looming.

UNIDENTIFIED FEMALE: You cannot outswim this. You cannot outrun it.

UNIDENTIFIED FEMALE: The sirens are going off.

UNIDENTIFIED FEMALE: It was chewing up everything in its path.

UNIDENTIFIED MALE: And bang, the tornado hit. You just hear it and feel it.

UNIDENTIFIED FEMALE: My eyes and my throat were burning.

UNIDENTIFIED FEMALE: You have got to be up high enough. That is your only escape.

UNIDENTIFIED MALE: It is all the colors of hell.

UNIDENTIFIED MALE: It's hard to imagine the power of Mother Nature.

UNIDENTIFIED MALE: We're not ready. We're very far from being ready.

UNIDENTIFIED MALE: We have so much technology. We have the ability to control so much in our lives. You still can't control Mother Nature.

UNIDENTIFIED MALE: "VIOLENT EARTH WITH LIEV SCHREIBER" premieres Sunday at 9:00 on CNN.

(END VIDEO CLIP)

(COMMERCIAL)

BERMAN: Former Olympic gold medalist Gabby Douglas is giving up her dream of competing this summer in Paris. She suffered an ankle injury. But she does tell ESPN she still hopes to compete in the 2028 Olympic Games in Los Angeles. The five-woman team for this summer will be named on June 30.

New developments this morning in a decades-long murder case -- Scott Peterson, convicted of murdering his wife Lacey Peterson and their unborn son in 2004. In an effort to get a new trial, his legal team requested 14 pieces of evidence be retested for DNA.

The judge approved of just one -- a piece of duct tape recovered from the body of his wife at the time of her autopsy. Human DNA was found on the tape during the original investigation but not enough to generate an identity at the time. The judge made clear the decision to retest the tape is not indicative of a decision on allowing Peterson a new trial.

[07:45:04]

And then in Mexico, three attacks on political candidates in just one day. A mayoral candidate was killed after greeting supporters at a campaign rally. Authorities say Jose Alfredo Cabrera was shot on the final day candidates were allowed to campaign publicly before the election. The gunman was killed at the scene.

Now, a different mayoral candidate was hospitalized after an armed attack, while yet another had shots fired at his truck -- Kate.

BOLDUAN: That's terrifying.

We're also covering this, this morning. One of the country's largest mortgage lenders is offering some homebuyers the deal of a lifetime -- zero down on their dream home. But there is a catch, and experts are warning of flashbacks now to 2008 and the global financial crisis.

CNN's Matt Egan is here. Matt, what is going on with this?

MATT EGAN, CNN REPORTER: Kate, we know a lot of people would love to buy right now but they don't have enough saved up for a downpayment.

BOLDUAN: Yeah.

EGAN: So a major mortgage lender is offering what they see as a solution here. This is from United Wholesale Mortgage. They have launched a zero percent down mortgage program. It's open to first-time homebuyers and lower-income borrowers.

Essentially, it's two loans. The first one would cover up to 97 percent of the home value. The second one is for the remaining three percent, up to $15,000. But experts are stressing you really need to understand and read the fine print here because if home prices stop going to the moon, this could really backfire.

So here's the deal. The second loan -- it's interest-free, which is great --

BOLDUAN: Um-hum.

EGAN: -- but it does have to be paid back in full if the home is sold, if the mortgage is refinanced, or if the mortgage is paid off. Now, the issue here is that homeowners -- they're going to start with no equity at all. So, sure, home prices are soaring right now but here's no guarantee that's going to continue. And if home prices drop, borrowers would instantly be underwater where they owe more than the home is worth. That's exactly what happened during the subprime meltdown 20 years ago.

So imagine a scenario where you lose your job or run into financial trouble and you have to sell your home. Even if you're underwater you still owe that second mortgage. And if you don't have the cash to come up with it, you're at risk of foreclosure and damaging your credit.

That's why Better Markets CEO Dennis Kelleher -- he told me that this has the potential to turn the American dream of homeownership almost immediately into a nightmare.

BOLDUAN: What is the company saying about this?

EGAN: Well, I did talk to an executive from United Wholesale Mortgage, and he said this zero percent down program is great for consumers because it gets at that downpayment problem. And he said that the critics are uneducated about the current state of the industry. And it's true -- underwriting standards are light years away from 20 years ago. I mean, back then, there were those infamous ninja loans --

BOLDUAN: Yeah.

EGAN: -- where people were borrowing with no income, no job, no assets. That just does not fly right now for good reason.

What's interesting though is the company told me that demand is through the roof. This program launched two weeks ago and they've already got thousands of applications. And that's because, as we know, it's really, really tough out there right now. I mean, you have mortgage rates are high, home prices are even higher.

Gallup had this poll that found that 21 percent -- just 21 percent of Americans say it's a good time buy right now. That is tied for a record low. Seventy-six percent say a bad time. It's hard to get 76 percent of Americans to agree on anything, but they agree on this.

And so, clearly, this program is trying to get at the affordability problem. Experts are just stressing you need to understand what you're getting into because a solution like this is not without risk.

BOLDUAN: Yeah, what's the best way to get at the affordability problem --

EGAN: Exactly.

BOLDUAN: -- is at the center of this.

It's great to see you, Matt. Thank you for that reporting.

EGAN: Thank you, Kate.

BOLDUAN: John.

BERMAN: All right. New this morning, Secretary of State Antony Blinken is signaling that the U.S. could consider allowing Ukraine to use American-supplied weapons against targets on Russian soil. Until now, the U.S. has forbidden that, but NATO allies have reversed course.

So this is what Secretary of State Blinken is now saying:

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, U.S. SECRETARY OF STATE: As the conditions have changed, as the battlefield has changed, as what Russia does has changed in terms of how its pursuing its aggression, escalation, we've adapted and adjusted, too -- and I'm confident we'll continue to do that.

(END VIDEO CLIP)

BERMAN: With us now, CNN military analyst and retired lieutenant general, Mark Hertling. General, great to see you. This is of particular interest because of what's going on around Kharkiv, which is Ukraine's second-largest city. The Russians have made recent gains over the border here.

What would allow Ukraine -- allowing Ukraine to use U.S. weapons to target inside Russia -- what advantage would that give to Ukraine.

LT. GEN. MARK HERTLING, CNN MILITARY ANALYST, FORMER COMMANDING GENERAL, U.S. ARMY EUROPE AND SEVENTH ARMY (RET.), (via Webex by Cisco): It's somewhat critical, John, and it's not just the ground advances the Russians have made across the border. It is the use of the air that have -- that the Russian Air Force has used to launch glide bombs and missiles at the citizens of Kharkiv itself.

[07:50:00]

The infrastructure damage in that town has just been significant. It's a continuation of Russia's war crimes against the people, violating everything within the Geneva Convention and the Law of the Land Warfare.

So when you provide the capability for Ukraine to strike aircraft that are launching these glide bombs or hit targets where missiles are fired from, it will reduce the amount of civilian casualties in places like Kharkiv and in other places. But it also just stops the formation of Russian forces from conducting operations across the border.

Russia has a great deal of space, as it were, within the Russian territory to do whatever they want, and that space can't be uncontested. Ukraine has got to go after some of those things to prevent further advances.

Now, this is a change. This is a big deal because there's also the risk of the potential of Russian escalation. And they have -- Mr. Putin has mentioned numerous times that there's the potential for using nuclear weapons. That's the riskiest part and only the president can take on that risk. You know, as much as we would like to push or others would like to push, he's the one that would be responsible.

BERMAN: So how far do you think the U.S. might allow their weapons to be used striking inside Russia? Are we talking about an area right around the border, which is here, or do you think it would be the type of thing where U.S. weapons could be used to target deep inside Russia?

HERTLING: Well, John, I think I've mentioned to you one time the military acronym of DOTS -- depends on the situation.

And what is going -- what weapons would go after, whether any kind of weapons that Russian launches, they could affect inside of Ukraine. So when you're talking about a very deep strike -- and that's what the biggest concern of the Biden administration is -- very deep strikes against Russian capabilities deep within Russia. There's also -- already concern about a radar site that was hit inside of Russia that Russia has claimed as interfering with their capability to defend themselves against a nuclear strike. So you can see where there's a lot of commentary about what might happen if U.S. weapons or NATO weapons are used inside of the federal republic of Russia. And what you have to do is ensure that it's just attacking the kinds of weapons that are going against Ukraine. That's a very difficult --

BERMAN: Yeah.

HERTLING: -- targeting process and that's what Ukraine is expected to do.

BERMAN: You know, one thing that has been noted is that despite Vladimir Putin's bellicose rhetoric over the last two years, Russia has been somewhat restrained in targeting U.S. supply lines as it were. I mean, everyone knows that U.S. weapons are coming into Ukraine from Poland here. Yet, Russia hasn't really targeted those armored weapon convoys.

HERTLING: Well, they haven't targeted the convoys because those are very difficult to target, John. But as you know, they have been launching missile strikes at a lot of western cities within Ukraine. I'll cite, specifically, Lviv and the various military facilities that are in the far west -- almost on the port -- the Polish border. Russia has struck stationary targets in that way. But they basically can't get aircraft or the kind of guided missiles that will strike large convoys, so it's very difficult for them to do that. But I've got to tell you, if Russia could strike those convoys, they certainly would.

BERMAN: Gen. Mark Hertling, always great to have you on. Nice to see you this morning. Thank you -- Kate.

BOLDUAN: Very soon, the jury will begin its second day of deliberations in Donald Trump's criminal trial. And at the very same time, the jury is also still out on who will be Donald Trump's running mate as he takes his presidential campaign from the trail to the courtroom and back to the trail again. But we have seen a pretty public campaign and audition from many who want to be Trump's running mate.

This morning, there's new reporting and speculation that his VP pick may be someone who is not even being discussed right now. One adviser telling CNN this. "Historically, the more he says a name, the less likely it is to be that person."

Joining us right now is Republican strategist Shermichael Singleton, and Democratic strategist Julie Roginsky. It's good to see you, guys. I absolutely love that quote.

Shermichael, if the list of known VP contenders includes, and I will list for us: Ben Carson, Marco Rubio, J.D. Vance, Elise Stefanik, Tim Scott, Doug Burgum, Tom Cotton, just to name a few.

Who would you venture to guess is the off-the-radar type of VP contender then?

SHERMICHAEL SINGLETON, CNN POLITICAL COMMENTATOR, REPUBLICAN STRATEGIST: I mean, you know what, Kate? That's a good question.

I would look at someone like Brian Sandoval, the former governor of Nevada. He's a Latino American and represents the largest minority group in the country right now. Thirty-six million Latino Americans are eligible voters. They're going to play, I would argue, an outsized impact on this election this November.

[07:55:00]

So if I'm looking at this pool and I'm trying to advise the former president, I'm looking at two things. What demo groups I could potentially increase my margins. Whether it's African American men or it's Latinos, you need to have a running mate, I would argue, who represents one of those two communities.

BOLDUAN: Julie, let me read a little bit more of this reporting coming in. It is the following. "There's a steady drumbeat of speculation within Trump's orbit that the former president's flair for the dramatic will at some point take over. Many around the campaign believe the lack of secrecy surrounding the open audition raises the possibility Trump ultimately picks someone off the public's radar."

A dramatic reveal would be, would do, could do I don't know, what to the race. I mean, do you think it's shaking things up? Is that what -- is that what Trump's campaign needs right now?

JULIE ROGINSKY, DEMOCRATIC STRATEGIST, CO-FOUNDER, LIFT OUR VOICES: I mean, have we not learned about Donald Trump after all these years? Of course, it's dramatic. Of course, it's like "THE APPRENTICE." But ultimately --

BOLDUAN: He'd make it dramatic even if it was exactly the person --

ROGINSKY: Of course.

BOLDUAN: -- everyone said in the countdown clock to it.

ROGINSKY: But think about what Donald Trump is missing, right? Donald Trump needs cash desperately, and Donald Trump doesn't want anybody with his own profile or her own profile to overshadow him, right?

Mike Pence was perfect for him because Mike Pence walked behind him like a dutiful medieval wife and effectually, like, did nothing to overshadow him whatsoever.

Doug Burgum is the guy because Doug Burgum has an unlimited amount of money he can put into a PAC for Trump if he wanted to and fund the campaign that Trump is having a hard time funding right now. And he's kid of a low-key guy. He's not somebody who is going to have his own profile, like J.D. Vance. He's not somebody who is going to be the first of anything, like a Tim Scott. He's going to be a Mike Pence with cash and that, I think, is something that is very appealing to Donald Trump.

So it could be dramatic. It could be a whole "APPRENTICE" type selection process. But I think at the end of the day, Trump is going to revert back to what he needs, which is money and somebody who is going to do what he wants and not overshadow him.

BOLDUAN: Let me also ask you both about this new reporting from The Wall Street Journal. John was talking about it earlier in the show that Elon Musk and Donald Trump have begun speaking several times a month since privately meeting in March at the home of billionaire investor Nelson Peltz.

Does this make you happy or does this make you concerned, Shermichael?

SINGLETON: I mean, look, the former president needs cash and Elon Musk has a lot of cash and he has a lot of friends with a lot of cash.

And in many ways, Kate, we've seen over the past several months since Elon Musk took over ownership of Twitter, now X, that he's become in many ways a darling of the right. And so to have that relationship -- potentially have a pseudo endorsement, if you will, by having his financial backing, I think will certainly benefit the former president.

BOLDUAN: The reporting from the Journal, Julie, is that the pair have held discussions on immigration, technology and science, including the U.S. Space Force.

No matter what you think of Elon Musk -- I mean, he does control a massive social media platform. If he really would be leaning into supporting Donald Trump -- advising Donald Trump, working -- I guess I could say if he would lean into really working against Joe Biden and his campaign, what impact could that potentially have?

ROGINSKY: Well, a ton, right? If Musk actually wants to write a check into the PAC -- and as I keep saying, Trump needs money.

BOLDUAN: Yeah.

ROGINSKY: That could really change the trajectory because Trump is having a hard time raising money right now. He's blowing a lot of money on things that are not related to his campaign directly. So Musk can help with that tremendously.

Musk also controls Twitter, right, and Musk has an ability to have the algorithm promote Trump-type behavior, which actually he's already doing in some ways.

But Trump doesn't need to go on Twitter himself to have Elon Musk work on his behalf on social media. And I think that's something that's very, very, very important to Trump, right, to both have that megaphone and also to have somebody with a lot of cash.

So it is concerning to Democrats.

BOLDUAN: I want to play something -- one real quick question for you, Julie, because the Biden campaign is taking this new, more aggressive approach in trying to win over Black voters. We're seeing a big campaign event yesterday.

I want to play something Donald Trump played -- something Joe Biden said.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Think about this. What do you think would happen if Black Americans had stormed the Capitol? I don't think he'd be talking about pardons. It's the same guy who wanted to tear gas you as you peacefully protested George Floyd's murder. The same guy who still calls the Central Park Five guilty even though they were exonerated. He's that landlord who denies housing applications because of the color of your skin.

(END VIDEO CLIP)

BOLDUAN: Shermichael, he's really going hard. I mean, what is your reaction to this, and this move now? It's a do -- it's a more aggressive approach going after Trump specifically trying to win back over part of the coalition that got Biden in the White House.

SINGLETON: I mean, you're right, Kate. And on the three points that the president made he's not wrong. If you talk to many African American voters, they would tend to agree.

But I think the issue here, Kate, is that the president isn't speaking about the economy, and that's what a lot of African Americans are concerned about -- specifically, Black men. We know what the racial issues are in this country. Black people don't need to be lectured on that.

[08:00:00]