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World is Headed to a Recession; Plane Stopped by Court's Order; NATO Preparing for More Aid for Ukraine; New Testimonies for January 6th Committee; Wrong Information Added Pain to Families; President Biden to Meet King and Prince of Saudi; Heat Wave Felt Around the World; BTS Giving Themselves a Break. Aired 3-4a ET
Aired June 15, 2022 - 03:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[03:00:00]
(COMMERCIAL BREAK)
ISA SOARES, CNN ANCHOR: Hello and a very warm welcome to our viewers joining us from all around the world. I'm Isa Soares in London.
And just ahead right here on CNN Newsroom, the United States and China sending grim warnings about the state of the global economy is a crisis looming.
The inaugural flight of a controversial deportation plan grounded at the last minute a day after British officials said that the plane would take off even if it just carried one passenger.
And Ukraine's president is urging to fighters to hold on as Russia's war approaches what could be a pivotal moment.
UNKNOWN: Live from London, this is CNN Newsroom with Isa Soares.
SOARES: Welcome to the show, everyone. It is Wednesday June 15th.
And we begin this hour with global stock markets which have been rattled by surging, as well as persistent inflation. Fear of recession and then economic slowdown. So all eyes today will be on the U.S. Federal Reserve, which is expected to raise interest rates to keep really a lid on inflation when it meets today.
Word of a possible three quarters of a percentage point hike sent the Dow 150 points down lower, the NASDQ gained a slow amount. The S&P finished lower for a fifth conservative day pushing it further into bear market territory.
If we have a quick look at future, well, this is European markets, in fact. They just opened the last minute or so. And you could see right there, Xetra DAX is down 1 percent, Paris CAC 40 is doing fairly better this Wednesday morning; and the FTSE 100 is up almost 1 percent. We'll keep an eye on those numbers.
Just hours ago, China's national bureau of statistics released new numbers for May and they are showing a sluggish recovery from a strict COVID lockdown. So, these how are markets are reacting to that. Nikkei is down 1 percentage, Hong Kong Hang Seng and the Shanghai composite doing fairly better this morning.
Well, a three quarters of a percentage point rate hike in the U.S. would be the biggest in nearly 30 years. And there's no guarantee it will bring down inflation as Alison Kosik now reports.
ALISON KOSIK, CNN CORRESPONDENT: The bear market for U.S. stocks deepened into the close of the session on Tuesday. A day before the Federal Reserve is set to make its interest rate decision. The Dow fell over 150 points. The S&P 500 fell slightly. But the NASDAQ ended with slight gains.
Investors are on edge about the meeting, will the Fed be more aggressive in its rate hikes? As much as Wall Street is worried about the possible side effects of the Fed getting too aggressive, many economists and traders are calling for the Fed to get tougher on inflation through its right heights. And the question is, will the Fed get it right?
There's no guarantee that interest rate hikes will solve the inflation problem. But increasing rates at a faster pace is expected to slow demand, exactly what the Fed wants but the outcome could push the U.S. economy into a recession. It's a delicate dance for the Feds. And investors know it.
And so, investors are preparing which is why we've seen so many volatile sell-offs in the market. There's a re-pricing of stocks underway to adjust and reflect a new landscape, not just a fewer gains in the stock market but slower economic growth, higher interest rates and high inflation.
Alison Kosik, CNN, at the New York Stock Exchange.
SOARES: Let me show you what U.S. futures are looking like this morning. So, looking slightly better than they were of course and how they close just yesterday, a key meeting as Alison said there for the fed but really priced into this is the, you know, three quarter of a percentage point rise there from the Fed. We should keep an eye on that. But you are seeing green hours across the board for those U.S. features.
Let's get more on all this. CNN's Steven Jiang is live for us in Beijing. But we start with Clare Sebastian who joins me here in London.
Clare, before we start talking about the U.S., in the last few minutes we have heard that the European Central Bank is holding an unscheduled meeting. What -- what do we know about this meeting, what are they worried about?
CLARE SEBASTIAN, CNN CORRESPONDENT: So, we don't know a lot about it, we have basically one line from the European Central Bank this morning from the governing council, which, by the way is the monetary policy committee but they sometimes meet to discuss other matters as well. They will be having what they call an ad hoc meeting today to discuss current market conditions. That's all we know.
[03:04:58]
But what else we know is that European bond deals have been rising significantly, the difference, the spread as it's called between German and Italian bond yield has been widening, that's a concern not only about rising interest rates but the more indebted countries like Italy will struggle to cope with that particularly if they rise for us.
We know that the European Central Bank has not raised rates yet --
SOARES: Yes.
SEBASTIAN: -- unlike the Fed and the Bank of England. They have said that they're going to for the first time in 11 years, at the next meeting the one after that could happen even bigger rise based on what happens to inflation. So, there has been concern about that and concern as well about what's called fragmentation within the Euro zone, the countries with more debt, struggling more than other countries with the debts there. So that's what we got today. the Fed meeting also putting pressure on the ECB as well.
SOARES: And we'll talk about the Fed in just a moment. Let me get to Steven Jiang. Steven, to you. I mean, we got this fresh data out of China. It does slow -- it does show a better picture, but it's clear from what I saw that the COVID zero policy shadow is still lingering there.
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right, Isa. Also keep in mind, these are official government economic data which is always viewed --
SOARES: Yes.
JIANG: -- with a grain of salt by many economists from around the world. But this data of course does point to a partial recovery in this economy despite the ongoing lockdowns across China back in May, including in shanghai. Now industrial output, for example, an unexpected rose by 0.7 percent compared to a fall of nearly 3 percent down in April.
That is probably due to the resumption of ramping up of manufacturing, especially in Shanghai where the authorities have basically ordered factories to set up these manufacturing bubbles, forcing workers to live and work in their factories, and in some cases, sleeping on factory floors to keep the production lines going.
On the other hand, though, when you look at retail, still very week, dropping a 6.7 percent, slightly improving from April but still not surprising given you have millions of consumers being locked in their homes. Obviously, not spending. And many of those people have said even when they're released from quarantine there is going to be no revenge shopping or shopping spree, because many are increasingly concerned about the future of this economy. And therefore, their future income. Another set of members a lot of people are paying attention to is unemployment. Officially, nationwide this figure stood at just shy of 6 percent. But when you zoom in, you look at the unemployment rate among the young, that is people between 16 and 24, that number creeping up to 18.4 percent in May. Just before the government has said that we are going to see the largest number of college graduates in this country, 10 million people graduating in the coming weeks and months, really flooding this already very depressed job market.
So, this economy definitely not out of the woods just yet. Isa?
SOARES: Stay with us, Steven, I'll return to you in just a moment. I want to, Clare, pick up on really what he was just saying. You know, there was fears and the World Bank talked about this of blow down of inflation right around the world.
SEBASTIAN: Yes.
SOARES: Not just in the U.S. But this strong medicine that we are expecting from the Fed today, they are pricing in from what I saw a 75-basis point. If it doesn't go that way then the markets will react. But why is this medicine needed?
SEBASTIAN: So, the thinking is that the Fed has been too late essentially. That they have spent too long telling everyone that inflation was transitory that it was all to do with the (Inaudible) supply chains that came out of the pandemic, and that would sort of correct itself overtime.
What happened was that it didn't correct itself and then we got the war in Ukraine which led to major increases in food and energy prices. And things like, for example, European sanctions on Russian oil.
SOARES: Yes.
SEBASTIAN: That's not temporary. When that comes in, that's that. That's a redrawing of Europe's energy map. So, inflation is clearly here. You know, it's getting worse in the U.S. We just got the CPI numbers on Friday that we're at 8.6 percent. And that, you know, really is generational highs that actually which we haven't seen in decades, Isa.
So, the Fed is now under enormous pressure. They had telegraphed half of percentage point rise, then was then a sort of series of what seems to be choreographed reports sent to, sort of, trusted journalists who covered the Fed on Monday, saying that 75 basis point was likely.
I think that's now priced in. I think if they don't do that, that will be the shock.
SOARES: I mean, the last time we saw a hike of that nature was 1994 when white like jeans were all the trend when we're probably still at school.
But very quickly, Steven, I want to pick up with you finally, you know the expectation of course is that China will hit the five and a half percent growth. Does Beijing still believe it can meet that?
JIANG: That seems to be increasingly difficult especially with --
SOARES: Yes.
JIANG: -- the second corner only has a few weeks left. And so, a lot of people are really doubting they can achieve positive growth which is the government said. And also, it's worth pointing out that people's lives and livelihoods are not just data points. When you talk to people here on the ground, they are increasingly pessimistic and worried because of new fears of more lockdowns because of these fresh clusters of cases --
SOARES: Yes.
JIANG: -- in Shanghai, but also here as in Beijing when they, you know, closing down a growing number of facilities and shops and bars and entertainment venues. So, people are very much worried and concerned, Isa.
[03:15:08]
SOARES: A lot for us to digest this morning, Steven Jiang in Beijing, Clare Sebastian here in London, thank you to you both.
Well, cryptocurrency is continuing to plunge on Thursday amid the expectations of the U.S. of rising interest rates to, as Clare said, to counter inflation. Investors rush to sell assets prompting too of the biggest crypto exchanges to restrict transactions.
One of them the Celsius Network hasn't yet announce when users can withdraw deposits. It comes as Bitcoin tumbles in value, down a quarter of its value since Friday. Now trading for less than $22,000 down from a record high of $69,000 last year.
El Salvador has lost at least $15 million in Bitcoin in the last 10 months alone. That's more than half the country's investment into the cryptocurrencies being headed of course by the country's president who announce plans last year, if you remember, to build the wealth for a city-funded by Bitcoin. The fallen value hasn't shaken him though.
In a response to the news he tweeted, quote, "you are telling me we should buy more Bitcoin," he says? Bukele. We'll stay on top of that story for you.
Well, the first flight of a controversial deportation planned by the U.K. was grounded at the 11th hour. The plane was on the tarmac with engines on as you can see there, and the cabin crew was seeing boarding when the European Court of Human Rights basically intervened. The court ordered the U.K. not to deport one asylum seeker for the time being as legal procedures play out. The ruling from the court led to the remaining asylum seekers being removed from the flight.
Monitoring all of this right from the beginning is CNN's Nada Bashir who is covering this for us from Paris. And Nada, this was quite the intervention by the courts. Tell us why it decided to ground the flight to Kigali?
NADA BASHIR, CNN REPORTER: Yes, absolutely, Isa, this was a last- minute emergency intervention by the European Court of Human Rights. We've seen a number of last-minute interventions over the last few days from legal bodies or with very similar reasoning, calling for more time for individual legal cases to be heard.
That is exactly what we heard from the European court last night in relation to one individual, an Iraqi national. They ordered Britain not to deport this individual. They said that there still is time, it needs to be time for the individual to have his legal case heard on the domestic front.
And that is what we've been hearing from advocacy groups across the board over the last few days. And in fact, it was that intervention by the European court that allowed lawyers representing those remaining on the flight to make those last-minute applications to get them off the flight.
Now, previously it had been thought that more than 100 people had received notices that they would be deported to Rwanda on that first flight on Tuesday. That number has dwindled down significantly over the last few days since, you remember that first legal challenge will support to the high court on Friday, down to single digits just yesterday.
We heard from a number of human rights groups picking that at around seven. It is believed now that those remaining six of course were then removed from the flight following that European court intervention. But there has been some question over the jurisdiction the court has over the U.K. government. They are still party to the European convention of human rights and, therefore those human rights cases can be heard at the European court.
But Boris Johnson was actually asked about this just yesterday whether or not it's time for the U.K. to perhaps withdraw from the European convention of human rights in order to allow the government to make its own rules. Now he didn't answer this directly, but he also didn't rule it out. Take a listen.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: Will there be necessary to change some laws to help us as we go along? It may very well be. And all of these options are under constant review.
(END VIDEO CLIP)
BASHIR: Now this has been a blow to the government. We heard from home secretary Priti Patel yesterday reacting to the news of the flight wouldn't takeoff. She did say that she always believed that this wouldn't be easy to pull through this policy. But also expressed disappointment at the European court for making this decision, for making that intervention despite the ruling that we've seen on the domestic front at the high court in London. But of course, this is a deeply controversial policy and it's received
criticism across the board. The U.N's own refugee agency has called the policy unlawful. Human Rights Watch describing Rwanda as having an appalling human rights record. Isa?
SOARES: It's a story that I know you will stay on top of. Nada Bashir this hour for us in Paris tis hour. Thanks very much, Nada. Good to you.
Up next right here on CNN Newsroom, an urgent call for more weapons in Ukraine as officials say the war has now reached a critical stage. We'll have the latest from Kyiv, next.
Plus, Alexei Navalny moved to a maximum-security prison. The latest on the crumbling Kremlin critics imprisonment.
[03:15:00]
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SOARES: Western intelligence and military officials believe the war in Ukraine has now reached a pivotal moment. One that could determine the long-term outcome of Russia's invasion. That assessment coming as fierce battles are reported in the Kharkiv region. And as well as we've been reporting all of these for weeks in fact.
In Severodonetsk where President Volodymyr Zelenskyy says his country are experiencing painful, his words, painful losses. It's there Russia's calling on Ukrainian fighters to really lay down their arms, but Mr. Zelenskyy says Ukraine must hold on, emphasizing how vital it is for its military to stay in the Donbas region. Also crucial, more weapons.
Ukraine's president is now pleading with allies to send modern anti- missile weapons systems to help battle Russia's aggression. Have a listen.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): Even though Russia has fewer and fewer missiles with each passing day, Ukraine's need for such systems remains. Because Russia still has enough Soviet types of missiles which are even more dangerous. There are many times less precise, and therefore threatened civilian objects an ordinary residential building much more.
(END VIDEO CLIP)
SOARES: Let's get more from CNN's Salma Abdelaziz who joins us now live from Kyiv. And Salma, you know, following on from that plea from President Zelenskyy, we know that defense ministers from NATO are expected to meet today. Talk us about -- talk to us about what Ukraine needs right now in the east to really turn this battle around, Salma.
SALMA ABDELAZIZ, CNN REPORTER: So, let's start by discussing what is meant by this pivotal moment. Because western intelligence says this is a critical time on the battlefield, this could determine the long- term outcome. And what the fear is, Isa, is that a Ukrainian military, which is of course facing a much more superior Russian force it's -- it's failing. It's failing on the battleline. Russian troops are incrementally making gains.
The city of Severodonetsk looks all but inevitable for it to fall. And with it, of course, that means that the larger Donbas is at risk for falling as well. So, the main scenario here that you're going to see Ukraine's allies discuss at this meeting led of course by U.S. Secretary of Defense Lloyd Austin.
The main scenario they are concerned about is that President Putin will make these gains. He will solidify these gains in the Donbas, all along the eastern flank, hold on to those newly occupied territories in Mariupol and Kherson and use that territory as a launching pad, as a staging ground to try to take evermore Ukrainian territory.
President Putin's ambition here his appetite for more Ukrainian lands has yet to seize. And he's been clear about that. He's been clear about his imperial vision.
So what defense ministers are going to be discussing is how do you continue to prop up the Ukrainian military that is weakening, we're losing -- they are losing about 100 to 200 soldiers on the ground every single day, among their most experience. They're losing weaponry, of course. They are losing ground that can't be gained back it appears.
[03:19:55]
So how can western allies continue to prop up this military not just in this battle for the east, Isa, but in the long term if this scenario does play out. And President Putin tries to push further into Ukrainian territory.
And there's a balancing act here that has to be played as well. Because western allies and the United States, in particular, want to provide these weapons but they don't want to provoke Russia further. So, you hear discussions about the range of weaponry that should be used.
Let me give you an example. The HIMARS that was promised by the United States, they provide a range of 70 kilometers. Ukraine wants weapons that provide hundreds of kilometers of range so that they could fire even further. But then the fear is what if the hits Russian territory? Well, if that provokes Russia further?
And then, you have the time lag here. So, again, those HIMARS they were promised about two weeks ago but it takes about three weeks to train Ukrainian soldiers on them. And then they have to be sent to the battlefield. So, you have this big lag. That means at least for places like Severodonetsk it's simply too late. And this war could drag out. It could be many, many more years.
And there is already that fatigue that's setting in. The economy, the gas prices. How much longer will the west continue its resolve, continue its commitment to Ukraine and how can they hold up --
SOARES: Yes.
ABDELAZIZ: -- against a much superior force, the Russian military in the face of President Putin's growing appetite for Ukrainian territory.
SOARES: Well, on the fatigue aspect of it, Salma, that you just mentioned there. Is there fear where you are that western commitment, and this is obviously whether, you know, what Ukrainian allies that western commitment may be suffering. Is there a fear of this?
ABDELAZIZ: Absolutely. And you hear that from Ukrainian officials over and over again. And you hear that in every nightly address from President Zelenskyy. You hear that in his pleas for more weapons. Ukraine says it's only received 10 percent of the weapons it's requested.
Now some of those weapons will never come again because of that balancing act the United States doesn't want to provide weapons that could provoke Russia further. But yes, absolutely when you see the United States turning inward because of gas prices --
SOARES: Yes.
ABDELAZIZ: -- and inflation, when you realize that these defense ministers are going to be dealing with potentially a years-long war of attrition. The frontline is 2,500 kilometers long. I mean, that is a huge battle to sustain for years long in the face of a very determined President Putin who is making these incremental gains but by bit. It is unlikely that what has been taken can be returned to Ukrainian territory.
So, this is really about withstanding President Putin's ambitions in the long term and how do they continue to supply those weapons, the cost, the money, the determination, all of that Ukrainian officials is flailing, it's waning.
SOARES: Yes, and we always knew that President Putin would play the long game, but retesting many of the leaders right around the world.
CNN's Salma Abdelaziz, great to have you. Thanks, Salma.
Well, it's not President Zelenskyy calling for further military aid. Ukrainian troops on the ground say more is needed as they engage in fist fighting in the country's east.
Our Ben Wedeman has more for you.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: American symbol, American weapon. Ukrainian troops try out new equipment U.S. supplied M4 rifles fresh out of the box. Away from the front lines, these soldiers are preparing to join the battle raging in the east. This exercise is designed to test Ukrainian forces who didn't use of
western weapons. This is an American 50 caliber machine gun firing Italian bullets. There is a problem though, we are told there is not enough western ammunition.
And not enough weapons either. Even in this drill, much of the firepower dates back to the Soviet era. Ukrainian forces are slowly losing ground in the battle for the eastern Donbas region. Morale here is high.
UNKNOWN: Good morning, Vietnam!
WEDEMAN: Yet no one believes these rifles will halt the Russian advance.
UNKNOWN: Is this?
UNKNOWN: Yes.
UNKNOWN: This is not enough.
WEDEMAN: Ukrainian officials say Russian artillery outnumbers their artillery at a ratio of perhaps more than 10 to 1. Used to deadly effect in the city of Severodonetsk now almost completely Russian control. Big guns not small arms could help Ukraine turn the tide.
VITALI, UKRAINIAN ARMED FORCES: When I can protect myself as a soldier with this weapon, I can protect my comrades. But unfortunately, I can't -- only my country from invaders to use not only this rifle, so we need more artillery. We need heavy rocket systems, and as seriously weapon. Because it's the modern war.
UNKNOWN: From the USA.
[03:24:52]
WEDEMAN: The U.S. and its allies have delivered advanced weapons systems to Ukraine and more are on the way. But the army here is losing men at an alarming rate. More than 100 killed in action every day, according to Ukrainian officials.
"We need a basic minimum to avoid more casualties. Artilleries, smart weapons, radar, drones, and people to train us," say the commander Lieutenant Oleksander, a veteran of the French Foreign Legion.
"We've shown we will fight. We will learn to use these weapons."
And that will take time, and time is a luxury this nation at war cannot afford.
Ben Wedeman, CNN, central Ukraine.
(END VIDEOTAPE)
SOARES: But some countries that can afford to send more military aid are expected to promise to do so today in Brussels. That is according to a senior U.S. defense official who spoke ahead of a meeting of 50 nations, known as the Ukrainian Contact Group.
NATO defense ministers will also meet separately later in the day. NATO secretary general said this ahead of this meeting. Have a listen.
(BEGIN VIDEO CLIP)
JENS STOLTENBERG, NATO SECRETARY GENERAL: NATO allies have supported Ukraine for many years. Since 2014, NATO allies have trained and equipped tens of thousands of Ukrainian soldiers, officers who are now actually on the frontline fighting the brutal invasion of President Putin. And they make a huge difference.
But we need to be prepared for a long haul. There is no way we can predict how and when this war will end but, we need to be prepared to continue for a long time to continue to provide support and this will be our address tomorrow in Brussels.
(END VIDEO CLIP)
SOARES: We'll stay on top of those meanings. Meanwhile, jailed the opposition leader Alexei Navalny has been transferred to a maximum- security prison. Russian state media reports he was moved to a facility in the Vladimir region on Tuesday, though Navalny spokesperson says his team has not received confirmation of his transfer.
It comes after he was sentenced to an additional nine years in prison last March on charges that he stole money from his anti-corruption foundation. The U.S. State Department is calling for Navalny to be access to his lawyers.
The U.S. State Department is also following the case of an American basketball star being held in Russia. On Tuesday, Russian state media reported that the detention of Britney Griner has been extended until at least July the 2nd.
Griner is a two-time Olympic gold medalist who played in Russia during the WNBA's off-season. She was arrested, as you remember, back in February after authorities claimed she had cannabis oil in her bags. Since then, her detention has been extended several times.
In a statement, Griner's agent said it was clear she's been used, quote, "as a political pawn," calling her detention inhumane as well as unacceptable. She also called the U.S. president and the U.S. vice president, as you can see there, to do whatever it takes to bring her home.
Well, an American who was recently freed from Russia says he is now file a petition with the U.N. over his detainment. Trevor Reed is the U.S. marine veteran who spent nearly three years in a Russian prison before being freed earlier this year.
In the petition, Reed says Russia violated international law by detaining him on made-up charges. He spoke about it with CNN's New Day. Have a listen. (BEGIN VIDEO CLIP)
TREVOR REED, FORMER U.S. MARINE DETAINED IN RUSSIA FROM 2019-2022: The position was to hold Russia accountable for wrongful imprisonment, mistreatment and violations of human rights. They fabricated this crime in order to opening there for political purposes. And this is the first step in seeking justice and ending, you know, Russian hostage diplomacy.
JOHN BERMAN, CNN HOST: What impact do you hope it has, Trevor, beyond just you in your case?
REED: Yes. So, I hope that, you know, by holding Russia accountable that this will, you know, force Russia to end this practice for, you know, all Americans that they're holding there, including Paul Whelan and Britney Griner. Paul is already, you know, been there for three and a half years. And you know, I've been released already for 48 days. We need to get him out of there as well as Britney.
(END VIDEO CLIP)
SOARES: Well, like Reed, Whelan is a former U.S. marine. He was detained at a Moscow hotel in 2018 accused of espionage. He was later sentenced to 16 years in prison. Whelan has denied the charges.
Still to come right here on CNN Newsroom, the January 6 committee previews its next big hearing. What deposition of a former White House lawyer reveals about the campaign to overturn the 2020 U.S. election.
Plus, new details in the hunt for British journalist and Brazilian indigenous expert missing in the Amazon. Why Brazilian authorities are now apologizing.
[03:30:00]
(COMMERCIAL BREAK)
SOARES: The January 6 committee has released a new video ahead of Thursday's hearing featuring a former White House lawyer. It's expected the hearing will focus on team Trump's scheme to use the former U.S. vice president to block certification of the 2020 election which obviously never happened.
But the ex-White House lawyer claims conservative attorney John Eastman was the architect of that campaign and presented it to then President Donald Trump. Here is part of Eric Herschmann's testimony to the committee.
(BEGIN VIDEO CLIP)
ERIC HERSCHMANN, FORMER WHITE HOUSE LAWYER: It was the day after Eastman -- I don't remember why he called me. Or he texted me, or called me, want to talk with me and he said he couldn't reach others. And he started to ask me about something dealing with Georgia and preserving something, potentially for appeal. And I said to him, are you out of your effing mind? Right? I said -- I said I only want to hear two words coming out of your mouth from now on, orderly transition.
And I said, I don't want to hear any other effing words coming out of your mouth no matter what, other than orderly transition. Repeat those words to me.
UNKNOWN: What did he say?
HERSCHMANN: Eventually he said, orderly transition. I said, good, John. Now I'm going to give you the best free legal advice you're ever getting in your life. Get a great effing criminal defense lawyer, you're going to need it. And then I hung up on him.
(END VIDEO CLIP)
SOARES: Well, the former U.S. president could be in even more trouble. The New York attorney general announced her office is investigating fundraising tactics, which helped his campaign collect $250 million. A financial investigative revealed Trump's team sent out as many as 25 fundraising e-mails a day full of false claims that donations would help challenge alleged wrongdoing into 2020 election, dubbed of course the big lie.
The panel says it was a big scam with the funds instead going to a political action committee formed by Trump himself.
CNN's Anderson Cooper spoke with a member of the January 6th committee about that fundraising process.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, CNN HOST: Congressman, a president soliciting a quarter billion dollars from citizens for so called offense fund that apparently didn't exist, it sounds shady, morally bankrupt. Is it illegal however?
[03:34:56]
REP. JAMIE RASKIN (D-MD): Well, let's start with this, Anderson. When it's a rule of political fundraising that when the election is over the winner can continue to raise money. And will usually raise a lot of it. But the loser finds everything dried up immediately, it's just like a desert out there.
But Donald Trump figured out a way to keep the spigots of money flowing even after he lost the election. And that was by claiming he had won the election and it was being stolen from him. And so, they mobilized hundreds of millions of dollars.
Morally, ethically, politically, it's obviously deeply problematic. One would have to go back and see exactly what the campaign disclaimers say. As people wrote checks to the campaign, and you know, offered their credit card contributions. And I have not done that, so I don't know specifically what the disclaimers are saying.
Obviously, you know, the election defense fund didn't exist. You are basically giving right back to the Trump political campaign operation, and all of the political operations of the Trump network. So, whether an actual FICA violation could be made, or a federal mail fraud prosecution, I just don't know. I have not looked at that.
But from the standpoint of our committee, remember, we're not a prosecuting committee. We're interested in just telling the truth and getting the facts out there of what happened. This is enough for us to be able to tell the public that the big lie was also a big scam.
(END VIDEOTAPE)
SOARES: Well, another committee member says just 30 minutes after the last fundraising e-mail was sent the U.S. Capitol was breached.
Brazilian authorities say they have arrested a second suspect in the disappearance of a British journalist and a Brazilian indigenous affairs expert. Dom Phillips and Bruno Pereira were last seen more than a week ago in a remote part of the Amazon.
Our Shasta Darlington has more from the investigation from Sau Paulo.
SHASTA DARLINGTON, CNN CORRESPONDENT: It's been more than a week since British journalist Dom Phillips and indigenous expert Bruno Pereira went missing in a remote part of the Amazon. Brazilian President Jair Bolsonaro says the men are unlikely to be found alive.
Workers at the Brazilian agency for indigenous people are on strike over the government's handling of the disappearance. And others are staging protests of what they see is a slow and inefficient response from authorities who took days to ramp up search and rescue efforts after Phillips and Pereira disappeared nine days ago.
It was precious time lost in a region rife with illegal activity and land invasions from illegal loggers, illegal poachers, and drug traffickers. But these protests are also aimed at exposing the policies and actions that indigenous people feel have been implemented under Brazilian President Jair Bolsonaro.
Deforestation has hit record highs in the Amazon and programs to monitor and protect indigenous territories have been severely restricted and defunded. So many people feel that these issues are connected, and that there is an overall environment of impunity.
What we know, as far as the investigation is concerned is that while search and rescue efforts continue, we know that items belonging to Phillips and Pereira have been retrieved. That both men received death threats before they went missing. And also, that what authorities are calling human biological traces were found in the river, and they are currently being analyzed.
Shasta Darlington, CNN, Sau Paulo.
SOARES: Well, adding to the frustration in the search for the missing men, conflicting news coming from authorities. The Brazilian ambassador to the U.K. is now apologizing to the family of Dom Phillips for passing along incorrect information. The family says an embassy official told them two bodies have been found, that was later denied by federal police.
The White House is making it official announcing President Joe Biden will visit Saudi Arabia, Israel, and the West Bank in July. And the Saudi trip is reviving some old controversies due to the kingdom's dismal human rights record. Listen to how one White House official is defending the trip.
(BEGIN VIDEO CLIP)
JOHN KIRBY, PENTAGON PRESS SECRETARY: The president does not set aside human rights concerns with the leaders all around the world routinely, he brings up our values and our foreign policy and our commitment to human and civil rights. And I suspect he will do the clearly on this trip as well. We don't set that aside.
(END VIDEO CLIP)
SOARES: Well, one figure who looms large over this trip is slain journalist Jamal Khashoggi. The White House press secretary has described his murder as his dismemberment by Saudi agents as quote, "contempt that happened before President Biden took office."
For more on the upcoming trip and the state of U.S.-Saudi relations -- here is international diplomatic editor Nic Robertson.
[03:39:56]
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, the Saudis are saying that President Biden is going there at the invitation of the king, King Salman. But they're making it also very clear that President Biden will meet with Crown Prince Mohammad bin Salman. Indeed, it's with the crown prince is expected at least from a Saudi point of view, expected to have his most substantive conversation about food security, energy security, economic ties improving trade relations. Even discussions about space.
So, MBS is really the day-to-day power in Saudi Arabia. And there seems to be a recognition now by the White House that MBS is going to become the king eventually in Saudi Arabia. That he is likely to be in position for many decades to come. MBS himself views himself and the Saudi kingdom as being the significant power player in the Gulf region.
So, for all of these reasons, and the fact that President Biden does need an oil producing swing capacity state like Saudi Arabia to help out with the rising energy prices around the world. But for all of these reasons, compromises on both sides are being made. But it is a significant climbdown for President Biden.
He had said on the campaign trail that he would turn Saudi Arabia into a pariah state. Now the Saudis listened to his campaign rhetoric, believed that once in the White House, Biden would tone it down. And from conversations I've had with Saudi officials, none of them really expected the relationship to get as rocky as it has over the past year and a half. Or to take this long to reset. But it does seem to be coming back to that point, that so many Saudis talked about, about a long and enduring and important relationship with the United States.
Nic Robertson, CNN, London.
SOARES: And I'll be talking about that meeting with Nic Robertson in the next 45 minutes or so. Well, it's time to break out the fans as heat waves sweep parts of Europe as well as beyond. After the break, how countries are trying to keep their cool, that is next.
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SOARES: Well, around the world, heat waves are producing destructive and sometimes deadly conditions. Officials in the U.S. state of Texas, warn residents to stay indoors and of course stay hydrated. They say current temperatures could be fatal to people who are not prepared.
Meantime, after the hottest March on record, India and Pakistan are dealing with more record-breaking heat. Pakistan's climate ministry says that the country jumped from winter to summer without experiencing any spring this year.
And Spain is enduring its earliest heat wave in more than 40 years. Temperatures are reaching more than 40 degrees Celsius in some areas. Forecasters warn the weather system could move to France and the U.K. in the coming days. In fact, we are feeling that here in the U.K. Expected to be (Inaudible).
[03:44:58]
CNN meteorologist Pedram Javaheri will have a look at the forecast. But first, I want to go to Al Goodman who is live for us in Madrid this hour. And Al, it is normally warm, pretty warm, at this time of the year in Spain. But this is very hot, indeed.
AL GOODMAN, JOURNALIST: Hi, Isa. It's 9.45 in the morning in Madrid. The temperature is already 27 degrees Celsius. That's 80 degrees Fahrenheit. And that's close to the low for the entire day. It's going to go up as you say, here in the Spanish capital, to 40 degrees, or 104 degrees Fahrenheit. And even higher in southern Spain, in places like Seville.
The National Meteorological Service says this day is expected to be the worst day of this extreme heat wave that is gripping the country. And it is the earliest heat wave on record in the last 41 years. And that's on the heels of the hottest May on record in 58 years.
So, about half of Spain's regions are on a level three extreme heat wave alert. That's the highest level. Several others are on a secondary, just a notch below that. Now the cause according to the meteorologists is a stable front. There's not much wind, and not much rain anywhere in Spain right now.
And in addition to that, there is a very hot air mass of air blowing in from North Africa. So, the Spanish health ministry is advising people to drink lots of water and other liquids throughout the day even if you're not thirsty, even if you're not doing exercise to stave off dehydration that happens. Some of the schools, especially in the southern part of Spain are
ending classes early so the kids can get out. A lot of the schools are not air conditioned. In agricultural entities fields, workers are being called in just about at dawn so they can get to work early and finish by 3 p.m.
But it's not just here, Isa, in neighboring France, just to the north, the temperatures of 40 degrees centigrade are expected this week. Experts fear this could be the earliest heat -- extreme heat wave in France in 75 years. And they have had problems with other heat waves killing people in previous years.
Also, it is expected to move into Britain with temperatures around 30 degrees centigrade level, which is very, very hot, 86 degrees Fahrenheit up there. Isa?
SOARES: Yes, and in the U.K., weather is expected to get warmer, like you said 86 Fahrenheit on Friday. Al, thank you very much. Let me go to Pedram. And Pedram, yesterday, you and I were talking about this heat wave, the U.S. is also experiencing. Just put everything into perspective for us. Why are we seeing these heat waves right now?
PEDRAM JAVAHERI, CNN METEOROLOGIST: You know, the elements are in place here, Isa, to produce an incredible heat wave. All of it coming together, and it's about a week before summer officially even gets underway across the Northern Hemisphere. And notice, it's been a multiday set up. We've had already eight days in the first 14 in the first month of June where Madrid has scorched up to 30-degree threshold.
And we have again, low pressure off to the west, high pressure off to the east. Both of them kind of surging in a southerly flow, and to the south, of course is Northern Africa. The Sahara Desert not too far beyond there. So, we get quite a bit of warm air that's being ushered northward over the last several days.
And again, sending these temperatures in some places as many as 15 degrees above seasonal average. Twenty-seven normal for this time of the. Forty-two what we saw in the past 24 hours in portions of Spain. Notice the heat advisory is widespread from the north, all the way towards the south. And this is the concern here, as Al noted, this is the hottest day of the week, we do expect to climb up to 41 degrees. But potentially to happen to a few showers by the evening hours.
But again, the heat will already be firmly in place there. Paris 31, 27 in London, and the heat really wants to expand over the next couple of days. Up towards the north, and eventually a little farther towards the east as well.
So, take a look at these observations of the forecast. Because London is expecting a high of 34 degrees come Friday afternoon. Karachi in Pakistan, high temperatures forecast of 32. Again, an incredible setup to bring such heat across London. I looked into this, the last time it was this hot in London was back in August of 2020, so about two years coming since it's been this hot. And across the U.S., Isa, parts of about 18 states almost 90 million Americans dealing with very similar temperatures. A lot of power outages in parts of the U.S. as well, because of the recent severe weather. Isa?
SOARES: Pedram Javaheri and Al Goodman, thank you to you both. Well, it's not just Europe really feeling the heat, the U.S. is also in the midst of (Inaudible) as we were just saying, with some extreme weather, with record heat raging floods, as well as devastating fires.
Our Brian Todd has more.
BRIAN TODD, CNN CORRESPONDENT: A large house crumbles into the surging Yellowstone River, and washes downstream.
UNKNOWN: That is insane!
TODD: The town of Gardner, Montana where that house was has been left isolated and surrounded by water according to officials with swift wild rescues taking place. Heavy rain and melting snow cause catastrophic flooding in Yellowstone National Park which had to be evacuated. Roads and bridges washed away.
[03:49:57]
The parents of CNN supervising producer Tim carter told us of their nail-biting trip out of Yellowstone over a bridge that was compromised.
UNKNOWN: When we were going over it, it really was scary because the water was already violently, you know, swirling around the bridge. So, we did find out later that it had washed out.
TODD: But at the Yellowstone region is not alone. Several areas of America's lower 48 states are experiencing extreme weather between inescapable heat, floods, heavy storms, and tornadoes. More than one third of Americans, 125 million people are under heat alerts from North Carolina through the Plains states due to a so-called heat dome that parked itself over the Tennessee Valley. A public health official in Houston says no one in these areas should shrug off the risks.
PORFIRIO VILLAREAL, PUBLIC INFORMATION OFFICER, HOUSTON HEALTH DEPARTMENT: When you have extreme heat, then everyone is in danger. When you suffered heat exhaustion then, or heatstroke then your vital organs, your brain suffers damages and you could die.
TODD: At one point in the past 48 hours, more than half a million households in the upper Midwest have lost power as residents dealt with crippling heat in those areas. Violent thunderstorms in the Midwest did severe damage, and prompted tornado warnings in Chicago.
In the west and southwest record-breaking temperatures combined with high winds, low humidity, and drought, are fueling wildfires. The pipeline fire raging near Flagstaff, Arizona, has grown to more than 20,000 acres. One resident of a Montana town near Yellowstone can only hope her new home survives the flooding. UNKNOWN: My husband and I just put in a brand-new house, never been
able to afford a new house. It's sitting at the top of the lane, and we are hoping that by some God miracle that our house will be there.
TODD: This particular pattern of extreme weather is expected to last for at least the next few days. And beyond that, not a lot of relief. Our experts at the CNN weather center say because of climate change heat waves like this will become increasingly common and more severe.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
SOARES: Still to come right here on CNN Newsroom --
The singers of Permission to Dance are asking for permission to take a break. What we are learning about a hiatus for K-pop superstars BTS and some of their potential solo projects. That's up next.
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SOARES: K-pop superstars BTS say they aren't breaking up. They are just taking a break. The massively popular boy band made the announcement during their 9th anniversary celebration on Tuesday. And we're very careful to call this a hiatus.
The members say they went to time to explore solo projects. One of them did admit they were going through a rough patch right now. The BTS promises the band will get back together again someday. It does not sound good.
CN's Blake Essig joins us now like from Tokyo at this hour. Blake, I suspect there are plenty of tears and heartbreak for teenagers this morning off the back of their comments?
[03:55:02]
BLAKE ESSIG, CNN CORRESPONDENT: You know, Isa, the real question here is, is a break ever really just a break?
SOARES: Yes.
ESSIG: I don't pretend to know the answer to that. But either way, this does feel like the end of an era. And the BTS army that includes tens of millions of fans worldwide are understandably devastated by last night's news. Since BTS meteoric rise to global stardom, which began in 2013, the seven-member group has achieved huge international success, winning hundreds of awards.
And while it isn't going to ease the sadness of super fans, the group did offer several reasons for the decision to go on this so-called hiatus. Including a lack of individual growth, and the inability to pursue solo projects. While acknowledging their fans, the band also admitted that the dynamic of the group had changed during the COVID-19 pandemic. And that it's been a long and exhausting process trying to find their identity. Take a listen. (BEGIN VIDEO CLIP)
RM, MEMBER, BTS: Right now, we have lost our direction, and I just want to take some time to think. And then return. That just feels route to our fans, like I'm letting down their expectations.
(END VIDEO CLIP)
ESSIG: Although it wasn't given as a reason for the group's decision to at least temporarily go their separate ways, all South Korean men age 18 to 30 are required to serve in the military for at least two years. And three band members are due for military service over the next two years.
Now on the business side of things, even though Hive, BTS management company released a statement clarifying that the group would continue to work together as well as individually, as a result of last night's announcement by the band to pursue solo projects.
Hive watches its stock fell more than 25 percent today. A big loss financially for the management company that birth BTS. But also, a big loss for the tens of millions of fans around the world that will be hoping, Isa, that in this case, a break really is in fact just a break.
SOARES: Yes, it sounds like a break. It doesn't sound like a hiatus, just saying. Thank you very much, Blake Essig for us in Tokyo. I appreciate it, Blake.
Now, Costa Rica has earned the final spot in the FIFA World Cup after defeating New Zealand one-nil. They look excited match. Well, the match was played in Qatar, but look at the fans back home, this will be the 6th World Cup Costa Rica has qualified for and the third in a row. While (Inaudible) will join Spain, Germany, and Japan, in group E. The field of 32 teams is now set for the tournament. Get ready, it begins November.
And that does it for me. Thanks very much. I'm Isa Soares. Back at the top of the hour with more news. More CNN Newsroom. Don't go anywhere.
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