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Economy Adds 372,000 Jobs; Suspect's Father Defends Sponsoring Son; Christopher Johnstone is Interviewed about Shinzo Abe; Rep. Ro Khanna (D-CA) is Interviewed about the Biden Administration. Aired 9:30-10a

Aired July 08, 2022 - 09:30   ET

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

[09:30:00]

JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: Xavier Becerra, to submit a report to the president within 30 days on his efforts on all of these fronts.

And, again, there are not a lot of details. A lot of these are, frankly, broad strokes where the White House talks about additional actions, for example, to protect and expand access to medication abortion. Not exactly clear what these are.

What's also clear is that many of these steps being taken now don't go as far as what many Democrats have been clamoring for the president to do over the last two weeks, since that Supreme Court decision. For example, this push to have abortion clinics opened on federal lands. That's something that the White House has said could potentially have dangerous ramifications and they've effectively ruled out, at least for the moment.

Erica. Jim.

JIM SCIUTTO, CNN ANCHOR: And it's happening as many states have passed or are passing laws to block access. You know, a battle here really on multiple fronts.

Jeremy Diamond, at the White House, thanks so much.

This news just in to CNN. Perhaps some good news. The U.S. economy added 372,000 jobs in the month of June. That number beat expectations as the Federal Reserve is working to cool off the economy, the labor market as well, to help bring down inflation.

ERICA HILL, CNN ANCHOR: CNN's Rahel Solomon joining us here in New York with more on this latest jobs report.

So, the job market's still red hot. There are still these concerns about a looming recession. You and I were talking briefly in the break, and it is sort of confusing, we live in this world where a good jobs report is almost bad. How does that work?

RAHEL SOLOMON, CNN BUSINESS CORRESPONDENT: Well, it's a very nuanced jobs report. So, what the report tells us is that the labor market is still very strong, some might say too strong. So, we came in at 372,000 jobs being added last month. The expectation was 100,000 less than that. The unemployment rate remaining steady at 3.6 percent for the last four months.

The gains were broad-based. We saw it across industries, from professional services, leisure and hospitality, healthcare, all adding more than 50,000 jobs over the last month.

The reason that we need an asterisk to this jobs report is because there is so much demand for workers right now. We have about 1.9 open jobs for every one person looking. And while it's great for workers to have that sort of flexibility and the options to move if they'd like to move, the issue is that companies can't find workers and so they're raising wages to try to incentivize people to work for their company, which is also great news for workers, except if you are making more but you can afford less because inflation is so high, it's a vicious cycles, right?

HILL: Yes.

SOLOMON: It doesn't even matter if you're making more if you can afford less.

So the Fed is trying to tame inflation. It's hoping to sort of cool some of the wage pressure so that people can actually enjoy making more.

So this is a jobs report that was certainly a lot hotter than most people expected. And at any other time, Erica, this would be a great jobs report. But, in this environment, it makes the job of the Fed much harder.

HILL: Yes, it adds to that challenge.

SOLOMON: Yes.

HILL: Rahel, appreciate it. Thank you. And thank you for put it in layman's terms. Thank you.

SOLOMON: Yes.

HILL: Stay with us. Next hour we are going to speak with Labor Secretary Marty Walsh for more on this latest report and also what's ahead for the economy.

SCIUTTO: Also new this morning, the state attorney in Highland Park, Illinois, says that the shooter's father may not be directly liable for vouching for his son's firearm permit, but prosecutors continue to explore, quote, all possible options there.

(BEGIN VIDEO CLIP)

ERIC RINEHART, LAKE COUNTY STATE'S ATTORNEY: There's not a criminal liability that's directly attached to quote/unquote vouching for somebody else, but we are looking at all of the evidence. There's a mountain of evidence to go through in terms of who knew what when. There's different ways to look at potential criminal liability in this case. I don't want to say much more other than that. But there's not a - you know, there's not a per se violation of law if, you know, you vouch for somebody in a FOID card and then they, you know, they end up doing something terrible like this.

(END VIDEO CLIP)

HILL: Well, in a recent interview with "The New York Post," Robert Crimo Jr. says he made the decision to sponsor his son's FOID card because he thought his son would only use the gun at the shooting range.

CNN's Josh Campbell joining us now with more from Highland Park.

So, Josh, you hear the father there speaking out, saying he stands by what he did, but we're learning a little bit more about that purchase as well. What have you learned?

JOSH CAMPBELL, CNN SECURITY CORRESPONDENT: That's right. We're learning about how that -- those weapons were obtained. Now, going back to 2019, we have been reporting on these encounters with law enforcement, between the shooter, his family, family members called police and said that we believe that the suspect is trying to harm himself, is trying to harm members of the family. Despite that police contact, which did not result in any type of charges, the family didn't actually file any complaints that would allow the police to take further action, later that year the father sponsored this card, this permit, for the shooter to actually obtain this weapon. And he's speaking out now, the father, saying that he feels no culpability for the massacre that happened here.

Of course, serious questions there for the family. If you knew the shooter was troubled, why would you then sponsor his ability to obtain a firearm?

Now, the suspect's father spoke to ABC News, again defending himself, talking about what happened.

[09:35:02]

Take a listen.

(BEGIN VIDEO CLIP)

ROBERT CRIMO JR., FATHER OF HIGHLAND PARK SUSPECT: I filled out the consent form to allow my son to go through the process. They do background checks. Whatever that entails. I'm not exactly sure. And either you're approved or denied. And he was approved.

(END VIDEO CLIP)

CAMPBELL: So, again, authorities still have a lot of questions for the father. That investigation is ongoing.

We're also learning new details about how authorities were able to quickly identify the shooter. I spoke with a police official yesterday who said that it was a possible mistake by the shooter that led to that identification because when he was fleeing this area right behind me, on video, you actually see the suspect, according to this official, get spooked by someone who he kind of ran into. He drops the firearm that was wrapped up in a blanket, and authorities were able to make that quick identification from the serial number.

Now, at the same time, local business owners here were scouring their own surveillance footage to see if they could actually find something that could help authorities. Our colleague Ed Lavandera spoke with one property owner who found a key piece of information in his own video files. You actually see this image here of the suspect, we know was dressed in women's clothing. Police say that was in an effort to try to disguise himself.

But, again, you have that firearm, a key piece of information, and a lot of help from business owners here gathering that CCTV, quickly getting that to authorities.

Of course, we know that this manhunt went on for several hours before the shooter was eventually taken into custody without incident.

Jim and Erica.

SCIUTTO: Perhaps before he could have fired again.

Josh Campbell there, thanks so much.

Well, this is particularly sad to learn this morning. We are finding out about the condition of an eight-year-old boy hit by a bullet in Highland Park. There's a picture of him there.

HILL: Cooper Roberts was shot in the chest as he was there to watch the July 4th parade. The bullet severed his spinal cord, paralyzing him from the waist down. A spokesman for the Roberts family discussed Cooper's condition just a short time ago.

(BEGIN VIDEO CLIP)

ANTHONY LOIZZI, SPOKESMAN FOR THE ROBERTS FAMILY: Cooper is still recovering from his most recent surgery, which was on Wednesday night, where they finally were able to close up his belly. And then we did get the prognosis that he would be paralyzed from his waist down.

He's still on a ventilator. Last I know, he was still sedated. And I think we're hoping that he'll wake up and have some consciousness today and so to see if we can eventually, next step, would be to get him off the ventilator.

(END VIDEO CLIP)

HILL: Cooper's family remains hopeful that he will regain consciousness, as you heard there, today. A lot of folks pulling for that little boy.

SCIUTTO: Poor little guy. HILL: Yes.

We want to return to as well to our news out of Japan, shocking news out of Japan this morning, former Prime Minister Shinzo Abe assassinated. We're learning more at this hour about the gunman, a 41- year-old unemployed man who used a homemade gun. What we know about his possible motive. We'll also take a closer look at Abe's legacy. That's next.

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[09:42:36]

SCIUTTO: We continue to follow the major news, the shocking news, frankly, out of Japan. Today, the country's former, also longest serving prime minister, Shinzo Abe dead after being shot, assassinated, during a campaign speech outside the city of Osaka. Abe was well known for a global world view, a more robust Japanese foreign policy. He met with three U.S. presidents during his tenure, Trump, Obama and Bush. Former President Trump called the news absolutely devastating, said Abe was a truly great man and leader. President Biden, just moments ago, called Abe a champion of the alliance between our nations. He went on to say that Abe's vision of a free and open Indo-Pacific will endure.

Let's speak now to Chris Johnstone, he's a senior adviser and Japan chair at the Center for Strategic and International Studies, also a former director for East Asia on the National Security Council.

Thanks for joining us this morning.

CHRISTOPHER JOHNSTONE, SR. ADVISER AND Japan CHAIR, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: Good morning, Jim.

SCIUTTO: First, I wonder if you can help people at home understand the shock. You lived in Japan for a number of years. This would be shocking in any country, particularly, though, in a country such as Japan where guns and gun violence is so rare.

JOHNSTONE: Yes, that's right. Again, thanks for the opportunity.

This is a sad day in Japan. A sad, very sad day in the U.S./Japan relationship.

And, yes, this incident is shocking, both for the significance of the figure involved, but also because of the rarity of gun violence in Japan. This is a country where it's virtually impossible for a private individual to obtain a firearm. There was something like ten shooting incidents in the entirety of 2021.

SCIUTTO: Yes.

JOHNSTONE: So very rare, very difficult to get a gun. And that magnifies the impact of this incident for the Japanese public.

SCIUTTO: Let's speak to Abe, a transformational figure, longest serving prime minister, but one with a very different, more robust view of Japan's position in the region and on the world stage than previous prime ministers.

Tell us about the changes he made and what legacy remains.

JOHNSTONE: Yes, sure. He was the most significant leader in Japan in more than a generation. Served for eight years when he -- until he stepped down in 2020. He actually had an initial run as prime minister in 2006 that lasted only a year and wasn't very successful. He stepped down for health reasons.

[09:45:02]

But he came back, and he came back with a plan. A plan that was really focused on moving Japan beyond a legacy of World War II and restoring what in his view was Japan's proper role as a leader in the world, diplomatically, economically, and militarily.

On the defense side, he did a number of significant things. He created a National Security Council for the first time. He pushed to loosen constitutional restrictions on the self-defense forces.

SCIUTTO: Yes.

JOHNSTONE: He passed legislation expanding the self-defense forces' ability to cooperate with the United States. These were all very significant steps that he led.

On the economic front, Jim, he brought Japan into the Trans-Pacific Partnership. This was the trade agreement that was so central at the time. And he held the agreement together after the United States withdrew at the beginning of the Trump administration in 2017. So, he was a leader on the economic front as well.

SCIUTTO: Yes.

JOHNSTONE: And, diplomatically, he was ahead of the curve, in my view, in recognizing the potential challenge of China, posed by China, to the international order. And really took it upon himself to undertake a much more active Japanese diplomatic role in the region. As you noted up front, he referred to it as his free and open Indo-Pacific strategy. This is language that the United States has since begun to adopt.

SCIUTTO: Yes. Yes, he was ahead of the curve, as you say, at a time when you still had U.S. officials of both parties frankly saying that engagement is -- engagement is the way forward with China, and he recognized a - he recognized the threat and changed Japanese foreign policy as a result.

Christopher Johnstone, we do appreciate you sharing your experience here on truly shocking news out of Japan.

JOHNSTONE: Thank you, Jim. I appreciate the opportunity.

HILL: Still ahead, an encouraging jobs report this morning. Recession fears, though, loom large. Our next guest challenging the administration to do more. We'll speak with Congressman Ro Khanna, next.

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[09:51:38]

HILL: The U.S. economy added another 372,000 jobs in June. That's according to newly released data from the Labor Department. And that is a robust jobs market with that number, despite growing fears a recession is brewing.

Let's take a closer look now with Congressman Ro Khanna, a Democrat from California, a deputy whip for the Congressional Progressive Caucus. He also sits on the House Oversight Committee.

Congressman, good to have you with us.

Before we jump into headlines of the day, as you and I were talking briefly in the break about the assassination of Prime Minister Shinzo Abe, I'm just curios, your thoughts on him, and on his legacy, specifically on those ties between Japan and the U.S.

REP. RO KHANNA (D-CA): Well, he made a great contribution to strengthening the U.S.-Japan relationship. It's just shocking and sad that something like this would happen in Japan. It's a culture, as you know, that doesn't have gun violence. An to have a political assassination is just deeply disturbing and suggests the increase of violence and polarization, not just in our country, but around the world.

HILL: Yes, it certainly does give you pause.

There is a lot -- and thank you for your - for you thoughts and your reflection there.

There is so much going on here at home, as you know.

We look at this jobs report today, very strong. We're also starting to see a dip in gas prices, a dip even in mortgage rates. Those are good things.

I know you've said in the past, though, that you would like to see some more -- the administration pointing to some more concrete examples there of how things are perhaps going better, instead of just saying that they are.

Why do you think there is still this persistent messaging problem?

KHANNA: Well, Erica, first I think the president deserves a lot of credit with the American Rescue Plan. These jobs numbers aren't happening by accident. That was significant investment in the country. It was a significant boost on consumer demand, and it's led to record job creation. I also think it's helpful that the gas prices are starting to come down. Of course, the president released Strategic Petroleum Reserves. There is massive investment in states like Ohio of new factories that Intel is creating but it's being held up by the Republicans in Congress to be able to do that even more.

So, I'm pleased that at least the numbers are being reported, and we are making progress.

HILL: All right, so I'm hearing from you that maybe you don't think there's a messaging problem there.

What I found interesting is, there was CNN reporting, which I know you saw this week, in terms of what is and isn't working and frustrations in Washington among Democrats with the president, with this administration. You've encouraged people with constructive ideas that they need to reach out, right? That they need to be a part of the solution. You've talked specifically about having an economic council. I'm curious, when you've reached out, part of what we heard in that reporting was that people can't get a call returned when they want to help this administration.

Are you having that same issue?

KHANNA: Erica, that -- I just can't find that to be true. I have been at times suggestive that the president should be more aggressive on what he could do to lower gas prices, lower food prices, on baby formula. When I wrote an op-ed, I often get calls from everyone from the White House chief of staff to the economic advisers. They are emailing back at midnight.

You can criticize many things about the White House, you can't criticize them on a lack of responsiveness. Ron Klain, Steve Ricchetti and others are doing an extraordinary job in reaching out.

[09:55:03]

And I would encourage people who have criticisms to reach out directly to the White House and I guarantee you that they will hear you.

HILL: I do want to get your take on this quickly.

"Axios" is reporting that Senator Schumer is pushing for the House to hold an up or down vote on the U.S. ICA bill. This is Innovation and Competition Act. I know how important this is to you, to your constituents as well. You're on the conference committee. Would you support that move?

KHANNA: Erica, I'm open to it. I, of course, was a co-author with Senator Schumer, Todd Young, Mike Gallagher on this. It is one of the most important things we can do is to make sure that semiconductors are made in the United States. It's going to increase our production. It's going to invest in new technologies to give us a competitive edge over China. Obviously, I prefer the House version, but I'm open to compromising to getting something done and getting it to the president's desk. If that's the only path, I'm open to it.

HILL: All right. Well, we will be watching to see what emerges there.

Congressman Ro Khanna, appreciate you taking the time to join us this morning. Thank you.

KHANNA: Thank you, Erica.

SCIUTTO: Still ahead, we do continue to follow the stunning news out of Japan this morning. Former Prime Minister Shinzo Abe assassinated. We speak with one of his former advisers. That's coming up.

(COMMERCIAL BREAK)