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Committee Seeks Clarification from Former Trump Aide Tony Ornato; Trump and Allies Try to Discredit Testimony of Star Witness; U.S. Supreme Court's Latest Decisions, Newest Justice; NATO Wraps Up Historic Madrid Summit; Ukraine: Snake Island Liberated After Russians Pull Out; Cherelle Griner: Brittney Griner's Trial Begins a Few Hours From Now; Uncertainty Over Inflation and Interest Rates Grips Markets. Aired 4-4:30a ET
Aired July 01, 2022 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:00:00]
MAX FOSTER, CNN ANCHOR: Hello and a warm welcome to our viewers joining us in the United States and around the world. I'm Max Foster in London. Just ahead on CNN NEWSROOM --
(BEGIN VIDEO CLIP)
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: But for this girl to sit there and just -- I think just make up stories.
REP. ADAM KINZINGER (R-IL): Mark Meadows and Dan Scavino have refused to come in and talk to Congress. We have the power of subpoena similar to what a court has and the Justice Department has failed to indict them for that.
REP. LIZ CHENEY (R-WY): At this moment we are confronting a domestic threat that we have never faced before.
(END VIDEO CLIP)
FOSTER: Allegations of intimidation, sources telling CNN Trump's allies tried to influence the January 6 Committee's star witness Cassidy Hutchinson.
And as Russia continues to fire missiles, rockets and artillery at civilian targets in Ukraine, Russian forces are driven from key strategic outposts like Snake Island. We're live in Kyiv with the latest.
Plus, ceremonies and speeches across Hong Kong as the city marks 25 years since it was handed back to China. We're live in Hong Kong, Beijing and Taipei.
ANNOUNCER: Live from London, this is CNN NEWSROOM with Max Foster.
FOSTER: It's Friday, July 1, 9:00 a.m. here in London, 4:00 a.m. in Washington. He Where we're getting new insight into what the January 6 Select Committee believes is possible witness tampering by members of Trump's orbit. Sources tell CNN that Cassidy Hutchinson told the panel she was contacted by someone attempting to influence her testimony before Tuesday's hearing. The committee is considering making a criminal referral to the Justice Department.
The committee has also subpoenaed Trump's former White House counsel Pat Cipollone. Testimony from Hutchinson reveals that Cipollone was alarmed about possible criminal behaviors by the president and his aides. One of the people Hutchinson highlighted during her testimony was former White House deputy chief of staff Tony Ornato. Ornato spoken with the select committee twice, but some members say they would like to get clarification from him on the shocking events that Hutchinson told the committee.
Former President Trump and his supporters are doing their best to undermine Hutchinson's damaging testimony. We'll get the latest now from CNN's Ryan Nobles.
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RYAN NOBLES, CNN CONGRESSIONAL CORRESPONDENT (voice-over): New information tonight about the January 6 Committee's star witness, Cassidy Hutchinson. Sources tell CNN that Hutchinson was one of the two examples that Vice Chair Liz Cheney used to show Trump's allies were putting treasure on former staffers to stay loyal to the former president.
REP. LIZ CHENEY (R-WY): Our committee commonly asks witnesses connected to Mr. Trump's administration or campaign, whether they have been contacted by any of their former colleagues or anyone else who attempted to influence or impact their testimony.
NOBLES (voice-over): Witness intimidation, among a growing list of potential crimes, the committee believes that Trump and his top advisers could be at the center of.
CHENEY: It's a serious issue, and I would imagine that the Department of Justice would be very interested in and would take that very seriously as well.
NOBLES (voice-over): But Trump appeared his allies are pushing back, attacking Hutchinson and questioning her credibility, all because of a dispute over one aspect of her testimony. The Secret Service arguing the details she recounted being told about Trump lunging at his detail inside a presidential Suburban are not accurate. The former president clearly backing the Secret Service members who were part of the story, Tony Ornato and Bobby Engel.
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: These are great people. They have devoted their lives to it and I think they were very embarrassed by it because it makes them sound terrible.
NOBLES (voice-over): But members of the committee saying that Ornato's story doesn't add up and they need to make it clear what he knows under oath.
REP. STEPHANIE MURPHY (D-FL): Mr. Ornato did not have as clear of memories from this period of time as I would say Ms. Hutchinson did.
NOBLES (voice-over): Congressman Adam Kinzinger taking it a step further saying in a tweet, quote, there seems to be a major thread here. Tony Ornato likes to lie.
Meanwhile the committee issuing a subpoena to former White House Counsel Pat Cipollone, a key figure members believe has a lot to share.
REP. ZOE LOFGREN (D-CA): There were quite a few things that he could tell the committee that would not be subject to privilege. And I think it's important.
NOBLES (voice-over): Cipollone already signaling that he may be willing to sit for a transcribed deposition.
[04:05:00]
As for others who are fighting subpoenas, frustration is mounting from the lack of action from the Department of Justice.
REP. ADAM KINZINGER (R-IL): Mark Meadows and Dan Scavino have refused to come in and talk to Congress. We have the power of subpoena similar to what a court has and the Justice Department has failed to indict them for that. And so, all it does is send a message, you just have to resist the Select Committee and you may be able to resist all penalties. That's been a frustration.
NOBLES (voice-over): And Wednesday night at the Reagan Library in California, Cheney using the work of the committee to make a case that it's time for the party to move past Trump.
CHENEY: To the little girls and to the young women who are watching tonight, these days, for the most part, men are running the world and it is really not going that well.
NOBLES: And we are learning a little bit more about the testimony that Tony Orinato -- the former White House deputy Chief of Staff -- has already given to the January 6 Select Committee. Sources say that he met on two different occasions, once in January, another time in March, that he was asked questions about what the former president knew about the vice president's whereabouts on January 6 and whether or not he could have done anything more to calm the protestors that were rioting in the Capitol on that day.
Ryan Nobles, CNN, on Capitol Hill.
(END VIDEOTAPE)
FOSTER: History was made on the high court on Thursday. Justice Stephen Breyer officially retired allowing his successor Justice Ketanji Brown Jackson to be sworn in as the first black woman on the Supreme Court.
This came as the court handed down its final opinions in what's been a monumental term. President Biden vowing to tackle climate change by any legal means possible after being hit with what he called a devastating decision to restrict the EPA's ability to regulate greenhouse gas emissions. But the court allowed the Biden administration to Trump era "Remain in Mexico" policy. It forced many asylum-seekers to return to Mexico whilst their immigration proceedings played out.
This as Biden seized a moment on the world stage to forcefully attack the court overturning Roe v. Wade calling on the Senate to change the filibuster rules to preserve abortion rights. Listen to this.
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JOE BIDEN, PRESIDENT OF THE UNITED STATES: The most important thing to be clear about this, we have to change -- I believe we have to codify Roe v. Wade in the law and the way to do that is to make sure that Congress votes to do that. And if the filibuster gets in the way, it's like voting rights, it should be -- we provide an exception for this, the -- require an exception to the filibuster for this action.
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FOSTER: Well, later leaders have wrapped up Summit in Madrid promising more aid to Ukraine. Mr. Biden offered little hope the conflict will end anytime soon though. But he said Ukraine can count on NATO's help no matter how long.
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BIDEN: We are going to stick with Ukraine and all of the Alliance is going to stick with Ukraine as long as it takes. When the war will end, I hope it ends sooner than later. But for it to end, they have to be in a position where the -- the Ukrainians have all that they can reasonably expect, we can reasonably expect, to get to them in order to provide for their physical security and their defenses.
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FOSTER: During the Summit the Alliance also invited Sweden and Finland to join. The invitation came after Turkey dropped its objections to new members. NATO will also prop up its security posture in Europe because of the war in Ukraine. That includes sending two more F-35 fighter jets to squadrons in the U.K., deploying extra air defense capabilities in Germany and Italy, sending an extra rotational brigade of 3,000 troops to Romania and setting up a permanent headquarters for the Fifth Army Corps in Poland.
Now Ukraine is now facing one of the most crucial and difficult periods of the four month old war. Russia continues to fire missiles, rockets and artillery at civilian targets across the country. At least 18 people were reported killed early on Friday when missiles slammed into a residential building and recreation center in Odesa. Just down the coast from Odesa, Russian forces have now been driven from Snake Island after week of Ukrainian attacks. President Volodymyr Zelenskyy highlighted the significance of retaking the island.
(BEGIN VIDEO CLIP) VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Snake Island is a strategic point, it significantly changes the situation in the Black Sea. It does not yet guarantee security, it does not yet ensure that enemy will not come back. But this significantly limits the actions of the occupiers. Step by step we will push them back from our sea, our land and our sky.
(END VIDEO CLIP)
FOSTER: In the Donbas, Russia claims it has captured half of the city of Lysychansk, that's including the local oil refinery.
[04:10:00]
Ukraine disputes that and says it still controls some of the industrial site.
Let's go live to Kyiv and CNN's Salma Abdelaziz who is juggling all of the messaging here. And it's interesting around Snake Island, isn't it, because a clear victory, as it seemed from the presidential office there. But the Russians saying it was a goodwill gesture that they were pulling out. I mean, how do you see it?
SALMA ABDELAZIZ, CNN REPORTER: Look, the main headline here is of course that the Russian forces have withdrew from Snake Island. And that's hugely symbolic, Max, because this was a place that really symbolized Ukraine's resistance very early on in this conflict. It was one of the opening salvos of the war, when a Russian warship -- again, this was at the beginning of the conflict months ago. Russian warship pulled up to that island, just this 45 acres essentially rock in the Black Sea. Yes, strategic, but again this tiny bit of land. And told the Russian warship, told over radio for Ukrainian forces on that island to surrender. And they responded by saying Russian warship go expletive yourself telling them where to stick it.
That went viral, that little radio exchange. It was printed on t- shirts, on mugs. You could go into any shop in Ukraine and you would hear that echoed. It became sort of a war chant, if you will, for Ukrainians. And they say -- Ukrainian officials -- that after military operations by air, land and sea, that they were able to force out Russian troops and finally take back that island. Again, a massively symbolic victory, one that means so much to Ukraine at a time when it is absolutely on the back foot on the battlefield.
And yes, Russia has a different narrative. It says it's withdrawn strategically from the island as a good will gesture and it sort of indicated in his messaging that that might ease the blockade of grain.
Now, Ukraine of course is accusing Russia here of blockading of preventing their ability to export some 22 million tons of grain. So, we'll see if that eases. At the same time Russia's been disputing this claim saying it is not their fault that the grain can't get out of Ukraine.
But again, it's the symbol of Snake Island being liberated, back in Ukrainian hands, that is so important. Especially when you look at that frontline where Ukrainian forces are having to retreat from that all-important Donbas region where they are outmanned, outgunned, where Russia absolutely had the momentum. This is going to be a massive morale boost for them.
FOSTER: OK, Salma in Kyiv, thank you.
You are looking at live pictures now from outside a Moscow courthouse where American basketball star Brittany Griner's criminal trial is scheduled to begin in a little less than an hour from now. Griner was detained in Moscow in February after officials said they found cannabis oil in her luggage. She's been held in a Russian prison ever since. Griner is expected to arrive at the courtroom very soon. We'll bring that to you.
Back in the U.S. Brittany Griner's wife Cherelle told CNN that she has been getting advice from families of other wrongfully detained Americans. In her exclusive conversation with CNN's Abby Phillip, she also discussed her reaction to seeing the pictures of Brittney in a Moscow courtroom earlier this week.
(BEGIN VIDEOTAPE)
ABBY PHILLIP, CNN SENIOR POLITICAL CORRESPONDENT: Have you seen any of the pictures that have been released, this week, of her?
CHERELLE GRINER, WIFE OF DETAINED WNBA STAR BRITTNEY GRINER: I have.
GRINER: I have. I have.
PHILLIP: And what did you think?
GRINER: It was very disheartening, you know? And honestly, I told you, I like to be very frank, with my wife, you know, and authentic, when I do write her, you know?
And I told her, I said, I saw a picture. And honestly, for a second, I thought you was insane. I said, you know, and it kind of took me aback. And so, I told her I was like, I just want to tell you one thing. I said, if you are losing your mind, just be gracious with yourself, because you're human, and that's OK. And that when you come back, you know, we will love you back whole.
And I said, If you aren't going insane, you know, just do me a favor and, you know, just try and keep whatever integrity you can control by not allowing them to depict you, in ways that are not really, you know, your current state, I said. So, if you got to put a hoodie on, and cover your head, do it. Don't allow them to try and strip you completely to that degree.
Because, at the end of the day, they're controlling the media, over there. So, I don't really know, you know, if it's Photoshopped, or if that's really her state of being, and things of that nature. But, you know, it was very hard to see. And so, I understand propaganda, to a certain degree. So, I try not to take it as just truth. But it did make me worried.
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FOSTER: And we'll speak to Clare Sebastian who's got lot of experience of operating within the media in Russia. Do you think Brittney's wife has got a point there, that we're seeing a lot of propaganda play out here?
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, I think that is something to bear in mind as we see how this trial unfolds. Max, certainly, Russia has very tight control over the media at the moment, much more so now since the start of the war in Ukraine. And obviously the war in Ukraine very much complicates this case.
But I think if you look at the precedent for trials like this, the most important precedents we have are of course Trevor Reed who has now been released from prison in Russia and returned home. And Paul Whelan, another American citizen who is still there.
[04:15:04]
They were both subjected to trials. The trials were largely behind closed doors. We didn't really see the evidence that was put forward to support their eventual convictions. In the case of Trevor Reed, the then U.S. ambassador called it, you know, a theater of the absurd. Paul Whelan's trial was said it could take secret evidence according to U.S. officials.
So, you know, I think that it is understandable that the family are very worried about this trial and how it's going to go. But I think the other point to this is that a trial even a conviction doesn't preclude an eventual deal being made to secure her release. Trevor Reed was released after having been convicted. Admittedly that gave a sort of combination of both hope and despair to the families of both Brittany Griner and Paul Whelan. Because of course Trevor Reed had a health emergency which seems to be why U.S. officials pushed for his release.
But look, there is talk in the State Department, they do seem to be actively dealing with this, CNN's Jake Tapper spoke to Antony Blinken about a week ago -- the U.S. Secretary of State. Asked him about the potential for a prisoner swap for Brittney Griner. And he said, look, they're not discussing details, but he said that bringing Americans detained abroad home from detention is their highest priority. So, the trial is set to start within the hour. We're hearing from CNN's Fred Pleitgen who is on the ground, that the hearing is expected to take no more than about 90 minutes. So, we'll watch and see what comes out of that -- Max.
FOSTER: OK, Clare, thank you. We'll be watching that throughout the day of course.
Up next, a rough quarter and turbulent year so far for U.S. stocks. A closer look at the latest numbers just ahead.
Plus, it is July 4th weekend, but holiday plans could be impacted by heavy rains across the United States. Details ahead.
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FOSTER: The closing bell on Wall Street on Thursday marking the end of a turbulent second quarter for all three major indices there. The Dow which fell 253 points in trading and did it's worth three month period since 2020. Similar story for the S&P 500 which also posted its worst first half of the year since 1970. And for the Nasdaq, it ended it worst quarter since 2008.
Right now, let's get a check of the markets around the globe. We are just over an hour into trading across Europe. Here is where things stand. German and French shares up, but London shares down. We've also been keeping an eye on the markets across Asia with just an hour to go until the opening bell on Wall Street -- a few hours rather. All the Asian stocks, the main ones at least are down. Japanese shares down nearly 2 percent, what would you believe. And here's a look at the futures, all looking down. The story really about risk aversion, investors moving away from riskier assets such as shares and into bonds.
All three major U.S. indices ended the first six months of the year in the red. And uncertain and worrying really period over inflation concerns, rattling investors. CNN's Rahel Solomon has more details from New York.
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RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Thursday closes out the first half of 2022 and it has been a rough ride for U.S. stocks this year. Since January, the S&P 500 has shed about a fifth of its value. The Dow is off more than 15 percent for the year and the tech heavy Nasdaq is lower by about 30 percent this year. Investors reacting to heightened fears of a recession as the U.S. Federal Reserve tries to tackle inflation that remained at a 40 year high. To tame inflation, the Fed Is raising interest rates. So, making borrowing more expensive and cool demand in spending.
That hopefully allows demands to catch up to the supply of goods which in theory should thrower inflation. But the risk of the Fed overdoing it and curbing demand so much that it triggers a recession is growing and the markets are jittery.
And on the inflation front, Thursday we got a new report which confirmed inflation is proving to be quite stubborn. One key inflation measure remains steady at 6.3 percent for the year ended in May. The Federal Reserve wants that number to be closer to 2 percent.
Looking ahead to the rest of the year, investor outlook remains bleak as the Fed has continued to expected to continue to raise interest rates to combat inflation. And as it does, borrowing costs continue to get more expensive for Americans. Perhaps one sign of relief, gas prices are lower with one energy consultant Andy Lipow telling me, he sees the average price of a gallon getting hitting 4.70 within two weeks.
Rahel Solomon, CNN, New York.
(END VIDEOTAPE)
FOSTER: In travel, some pilots for Delta Airlines are on the picket ahead of the busy July 4 weekend. These pictures from Minneapolis on Thursday. The airline has already cut about 100 flights a day from its July schedule to minimize disruptions. But experts are warning it's going to be a summer of travel hell. While airlines receive $54 billion in federal aid during the pandemic, they now have fewer employees than before COVID especially pilots.
Labor shortages won't be the only challenges for holidays this weekend adding to the travel misery, much of the U.S. will be impacted by heavy rains and thunderstorms as well. CNN meteorologist Derek Van Dam has more details on that.
DEREK VAN DAM, CNN METEOROLOGIST: That's right, Max. Millions of Americans will be traveling today through the course of this extended holiday weekend, myself included. Many of us want to get a head start on our early weekend plans. And there's going to be some travel problems -- and travel concerns I should say, that being severe weather across the upper Midwest and then the potential for some flash flooding across the Gulf Coast states, monsoon natural moisture over the four corners.
But really across the northeast today is your day to travel if you're located in New York or Boston. But things will change as we head into the weekend. More on that in just one second.
Look at what the National Service has done, they have issued a flood watch in and around the Houston area, this includes Galveston. This is all thanks to what was a tropical disturbance just off the coast of Texas.
[04:25:00]
No longer monitoring this for tropical activity because it has moved on shore, but this storm system will bring plenty of Gulf of Mexico moisture and it will kind of resurge all of this rainfall potential into the area. Now we've had plenty of drought conditions across eastern Texas into western Louisiana, and this will help put a dent into that with rainfall totals here exceeding several inches. Weather Prediction Center has a slight risk of flash flooding in and around Houston as well as southwestern Louisiana. You can kind of see that system spinning up across the area.
Other weather story for the extended holiday weekend will be this approaching cold front along the East Coast. You can see it producing a few thunderstorms today across portions of Pennsylvania and into eastern Ohio. But as we head into the day Saturday, continue conditions become a little more prime for severe weather especially along the eastern seaboard into New England, Boston, New York, Philadelphia to D.C., damaging winds and large hail are a possibility. So, we're going to monitor that situation closely. By the Fourth of July, it'll clear out nicely and bring in very pleasant conditions just in time for fireworks -- Max.
FOSTER: Thanks to Derek Van Dam. Now China's president makes his first trip outside the mainland since
the start of the pandemic. We're live in Hong Kong with details on Xi Jinping's visit and the city's anniversary celebration -- Ivan.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, Max, Xi Jinping declaring a new era for Hong Kong on his first visit to this city in some five years. This after organized political dissent in this former British colony has been all but crushed. But the Chinese leader did not spend the night here. We'll have more details of his visit after the break.
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FOSTER: Hong Kong is marking 25 years since the former British colony was handed back to China with a day.
