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Liz Cheney Defeated but Not Deterred; Senator Lisa Murkowski and Kelly Tshibaka Advance in Alaska's Special Race; Rudy Giuliani Faces Grand Jury in Georgia; DOJ Interviewed Pat Cipollone and Patrick Philbin. Aired 3-4a ET

Aired August 17, 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)

ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us here in the United States and all around the world. You are watching CNN Newsroom. And I'm Rosemary Church.

A crushing but not shocking defeat for the most forceful Republican critic of former U.S. President to Donald Trump. Tuesday was primary night in Wyoming where House Republican Liz Cheney conceded to her Trump backed opponent.

Harriet Hageman netted some two thirds of the vote. This was a seat Cheney won by more than 70 percent two years ago. During her concession speech who is vice chair of the January 6 committee said that she could've easily won again but that would have meant embracing Trump's lie about the 2020 election. And that was a path she could not take, she said. Wyoming voters punished her for that stance.

(BEGIN VIDEO CLIP)

REP. LIZ CHENEY (R-WY): This is a fight for all of us together. I am a conservative Republican. I believe deeply in the principles and ideals on which my party was founded. I love its history. And I love what our party has stood for. But I love my country more.

HARRIET HAGEMAN, WYOMING REPUBLICAN NOMINEE FOR U.S. HOUSE: Wyoming has drawn a line in the stand that if we put you in power, you will be accountable to us, you will answer to us and you will do what is in our best interest. And if you don't, we will fire you.

(END VIDEO CLIP)

CHURCH: Cheney went on to say no Americans should not support election deniers in any position of responsibility.

CNN's Jeff Zeleny reports from Jackson, Wyoming.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: Congresswoman Liz Cheney in Wyoming concedes defeat in her congressional primary race, but is looking ahead. Now, the real work begins. In a sweeping speech outside of Jackson, Wyoming on Tuesday night, the congresswoman talked about the threats to democracy.

She talked directly about former President Donald Trump, saying she could've won reelection had she followed the path of election lies. She said she simply was not willing to do that.

CHENEY: Two years ago, I won this primary with 73 percent of the vote. I could easily have done the same again. The path was clear, but it would have required that I go along with President Trump's lie about the 2020 election. It would have required that enable his ongoing efforts to unravel our Democratic system and attacked the foundations of our republic. That was a path I could not, and would not take.

ZELENY: The speech from Cheney was infused with history. She is a student of history, a historian in her own right, talking about the young and fragile democracy that the United States indeed has. She talked about the need to bring Americans together, Republicans, Democrats, independents, she urged them to join her.

What she did not say is join her for what, exactly. She tiptoed to the line, clearly making the case that she is going to be involved in the fight ahead for democracy but didn't say in what form that would take. She did not talk about a presidential run of her own, as many supporters at her event certainly would like her to do.

But she did talk about the urgency facing the country and the imperative nature of Republicans and Democrats and independents to come together against Donald Trump. She said her greatest goal is still keeping him from the Oval Office.

Jeff Zeleny, CNN, Jackson, Wyoming.

(END VIDEOTAPE)

CHURCH: And now, to Alaska where results are coming in from several key races. Alaska's primaries unique and that the top four finishes regardless of party advance to the general election. In the Senate race, incumbent Republican and Trump critic Lisa Murkowski will be on the ballot in November. So will have a Republican rival Kelly Tshibaka who is endorsed by the former president.

Democrat Patricia Chesbro will also advance. And former Republican vice-presidential nominee Sarah Palin is one of the candidates who made the cut in the race for Alaska's at large House seat.

Fellow Republican Nick Begich and Democrat Mary Peltola will join her on the November ballot. A fourth spot is too early to call for both races.

The House candidate took part in a special election to fill the remainder of a late congressman's term. But none of them received 50 percent of the vote. So, it will be a while before a winner is determined.

[03:05:05]

Alaska is using a ranked choice voting system that will start the tabulation on August 31st.

So, I want to bring back CNN political commentator and former House Republican Charlie Dent. As well as Democratic strategist and professor Caroline Heldman. A warm welcome back to you both.

CHARLIE DENT, CNN POLITICAL COMMENTATOR: Hi, Rosemary.

CAROLINE HELDMAN, DEMOCRATIC STRATEGIST: Great to see you, Rosemary.

CHURCH: So, as we discussed last out hour, Liz Cheney's loss in the Wyoming GOP primary was no surprise given her bold stance against Donald Trump in a state that's truly Trump country.

But Charlie, did she receive sufficient support to gain the credibility she needs to confront Trump and prevent him from being president again as she has vowed to do? And how much she'd do that?

DENT: Well, it remains to be seen whether or not she received enough support. But what Liz Cheney has identified is a great need in this country. To bring our politics to a better place. And certainly, bring the Republican party to a better place. I have always estimated, probably close to 30 percent of Republicans reject Trump and Trumpism and want a new direction for the party and for the country. And they are looking for leaders.

The question is, can -- can that minority of the party grow in rank to challenge the ascendant Trump wing? Which, unfortunately has become very a illiberal -- illiberal and in some cases authoritarian leaning. I think there is a great deal within this country that our politics, both parties frankly have drifted at the political center. The center left, the center right of the political spectrum is underrepresented in the country. And there needs to be a movement.

And Liz Cheney is one of several people I think could lead this movement to try to move the country into a better place. Now, I'm not advocating for a new party. But I am advocating that we need some kind of a movement and people like Liz Cheney, Larry Hogan, Adam Kinzinger, Peter Meijer and others who felt the wrath of Trump I think are well positioned to help carry the mantle going forward.

CHURCH: Yes. I mean, that courage seems in short supply right now in the GOP side, doesn't it.

Caroline, what do you think Liz Cheney's likely next move might be givens she says her work is not over yet. And this is the beginning. So, is she hinting at a run for president do you think in 2024? And how might that go if she does?

HELDMAN: I think she definitely hinted at that when she refenced Lincoln in her speech tonight. She obviously has aspirations for higher office. I think she has a very limited path because she is not welcomed in the Republican Party and she wouldn't be welcomed in the Democratic Party either because of her hawkish ne-conservative positions.

I think her courage goes a long way. I agree with Mr. Dent. The fact that she is putting her democracy and her country above her party and is going to lose her congressional seat as a result of that is something that everyone should be celebrating who cares about democracy.

And I think what is right in front of her is four months of very intensive work with the House select committee, as she has said her primary objective is to make sure that Trump can't run for office again because she's made it very clear. And the committee has made it very clear that they think there is ample evidence that he did a number of things, including again inciting the violent insurrection on January 6.

So, we haven't heard the last of Liz Cheney, I'm not sure though that she will be an elected official necessarily given that she's lost her seat now.

CHURCH: Right. And in Alaska, we are learning that Trump critic Senator Lisa Murkowski will advance to the November election and former Republican Governor Sarah Palin endorsed by Trump is hoping to fill a vacant House seat.

Charlie, what is your reaction to what we know so far about these results in Alaska? And where do you think it's going?

DENT: Yes, in the case of the Senate race in Alaska, Senator Murkowski I think is well positioned to win the general election. She didn't quite get 50 percent here. She will, I think she goes into the general election as a favorite because -- because of her centrist politics, center-right politics and Alaska being a Republican-leaning state I think that she will be able to capture enough Republicans and the significant number of independents and Democrats to rule the day in the general election.

So, the fact that there was a Trump endorsed challenger to her might have help that individual during the primary contest or this news -- what happened tonight. But that's, I think that's a very limited endorsement going forward.

In the case of the House race, they're trying to fill the unexpired term of Don Young who passed away a few months, the longest serving member, I think of the House at the moment until he passed.

[03:09:54]

And I think right now, again, that's going to be, I think it's too close to call. We don't know what's going to happen because they're trying to fill the seat in the special election to fill the unexpired term and also then, you know, determining the nominees for the general election in the fall for the two-year term.

So, too close to call there. I'm not -- I'm not in the business of making any predictions on that one right now. But Sarah Palin I think is a very, she is a very controversial figure in Alaska. And so, even though she has a Trump endorsement, people in Alaska know

her. And they have strong opinions one way or another. She would have a tougher time getting those crossover votes from Democrats and independents that Lisa Murkowski more recently get.

CHURCH: And Caroline, you're clearly watching Sarah Palin very closely. What do you expect will happen with her run there?

HELDMAN: Well, I think it will be Peltola-Palin matchup. Peltola is the Democratic candidate. She would be the first Native American woman elected to Congress if she is elected. I think it will be a very tight race. And as Mr. Dent pointed out, Sarah Palin is a controversial figure in Alaska.

In fact, a recent poll finds that 64 percent of Alaskans have an issue or have a negative sentiment toward Sarah Palin. So it might be that she gives Democrats their first win in Alaska in 14 years.

CHURCH: And Charlie, was Tuesday a good night for Trump?

DENT: Well, yes. He defeated Liz Cheney. Again, Alaska, it's unclear what the outcome is there. But you know, we -- this is an expected outcome. And Donald Trump has been successful in advancing candidates who support his election denial unfortunately. He's been very successful in this primary to seize.

But he is also -- what he's also done there was help nominate many candidates, Republican candidates in swing states who are perceived to be either too extreme, election deniers or just weak candidates.

And so, winning the primary is one thing. Winning a general election is quite another in states like Arizona, Pennsylvania, in Michigan and Wisconsin. And so, I think that really is what's occurring here.

Donald Trump has infuriated a lot of Republicans in the state like Pennsylvania because of his nominate -- his endorsement in the gubernatorial primary and in the Senate primary against the wishes of many of the more established Republicans. And so, he's made some enemies in this process.

He did the same thing in Georgia where he was actually defeated in the gubernatorial and secretary of state races. So, the bottom line is, you know, if Republicans underperform in the general election, a lot of the anger will be directed at Donald Trump.

And if he's going to run in 2024, well, he's going to have some more enemies and some of these other candidates may have a more better reception from a lot of Republican leaders throughout the country.

CHURCH: And, Caroline, does Trump need to watch his back with Liz Cheney now freed up to go after him?

HELDMAN: Well, I mean, I think he needed to watch his back regardless because the evidence is pretty overwhelming that the January 6 committee that's investigating him is presented. And of course, you have the grand jury investigation in Georgia.

You have two grand juries convened in Washington, D.C. to look at potential electoral slate fraud. You also have the civil and the criminal cases happening in New York. Donald Trump is definitely watching his back.

And Liz Cheney is playing a key role in exposing what happened on January 6th in the days leading up to that. And I think that it's really the investigation of the committee putting a lot of public pressure on the DOJ to act, I think we are starting to see an acceleration there. And that has everything to do with Liz Cheney's work as well as the work of the broader committee.

CHURCH: Caroline Heldman, Charlie Dent, many thanks to you both for joining us. I appreciate it.

DENT: Thanks, Rosemary.

HELDMAN: Thank you.

CHURCH: And still to come, more members of Donald Trump's inner circle are questioned by the FBI over the possible mishandling of classified information as the Mar-a-Lago investigation heats up.

And later this hour, new COVID boosters are coming next month here in the United States. And experts say they could be crucial as flu season picks up as well. Back in just a moment.

[03:15:00]

(COMMERCIAL BREAK)

CHURCH: Wyoming's Liz Cheney chose principles and honesty over capitulation and Republicans responded by voting her out. Cheney conceded to Republican rival Harriet Hageman who will appear on the House ballot in the November general election.

Hageman, who was endorsed by former U.S. President Donald Trump has embraced his lies about the 2020 election being stolen. Cheney's loss marks a big victory in Trump's effort to purge perceived enemies from the party. But Cheney says she won't give up the fight to keep Trump out of the Oval Office.

(BEGIN VIDEO CLIP)

CHENEY: Our nation is barreling once again towards crisis, lessness and violence. No American should support election deniers for any position of genuine responsibility where their refusal to follow the rule of law will corrupt our future.

(APPLAUSE)

(END VIDEO CLIP)

CHURCH: Donald Trump's former attorney, Rudy Giuliani is expected to appear before a special grand jury later today here in Georgia. Prosecutors have informed Giuliani he is a target in the probe into Trump's effort to flip the 2020 presidential election results in Georgia.

[03:20:01]

Former national security adviser John Bolton warns Giuliani's testimony could spell trouble for Trump.

(BEGIN VIDEO CLIP)

JOHN BOLTON, FORMER NATIONAL SECURITY ADVISER: President Trump may be right behind him in terms of liability. If Rudy is in trouble is the target of an investigation, then I think Trump almost certainly is as well.

(END VIDEO CLIP)

CHURCH: Meanwhile, a judge is ordering former Trump attorney Jenna Ellis to appear before the grand jury in Georgia. Investigators believe Ellis helped Donald Trump and his associates push claims of election fraud in the state. A court date is still being worked out.

Well, team Trump's legal trouble don't end in Georgia. We have learned two of the most senior former aides to Donald Trump were questioned in what's now a criminal investigation into his handling of classified documents at his Florida home.

CNN's Jessica Schneider has details.

JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: There are new revelations that two top White House lawyers interviewed with the FBI about classified documents Mar-a-Lago, White House counsel Pat Cipollone and his deputy Pat Philbin were Trump's designated representatives to the National Archives when Trump left office.

So, they could have shared details with the FBI maybe about what was taken to Mar-a-Lago, whether Trump insisted that documents remain with him and why 11 sets of classified documents remained at Mar-a-Lago until last Monday when FBI agents searched Trump's Palm Beach home.

Now those details were coming out just as the court fight for more information about the search is looming. A federal judge announcing that he will hold a hearing Thursday afternoon on whether to publicly release the affidavit that's what provided the basis for last Monday's search.

Now the Justice Department is seeking to keep it completely secret, they say that any release would reveal what they're calling highly sensitive information about witnesses, plus specific investigative techniques. So, the DOJ is asking a judge to keep it under wraps because they say if it's released it would provide too much of a roadmap to the government's ongoing investigation.

So, the arguments are coming from all sides, the Justice Department, trump's team that needs to file a response on Wednesday morning, and also media outlets who want this affidavit released, including CNN. All of these arguments will play out in court in federal court in Florida on Thursday afternoon.

Jessica Schneider, CNN, Washington.

CHURCH: And back in Georgia, according to a new court filing 11 Trump supporters involved in the so-called fake electors scheme want the Fulton County district attorney disqualified from the 2020 election probe.

A judge overseeing the special grand jury recently blocked Fani Willis from investigating Georgia State Senator Burt Jones, who also served as a so-called fake elector. The judge's decision came after it was revealed Willis held a fundraiser for Jones's political opponent, a conflict of interest.

Well, time for a short break. When we come back, a stinging defeat for Trump critic Liz Cheney, what she plans to do to keep the former president out of the White House.

Plus, a new demand in the nuclear talks with Iran. What happens if a future U.S. president decides to pull out of the deal, some possible answers later this hour.

[03:25:00]

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(BEGIN VIDEO CLIP)

CHENEY: We must be very clear-eyed about the threat we face and about what is required to defeat it. I have said since January 6th, that I will do whatever it takes to ensure Donald Trump is never again anywhere near the Oval Office. And I mean it.

(APPLAUSE)

(END VIDEO CLIP)

CHURCH: Liz Cheney was one of 10 House Republicans who voted to impeach Donald Trump. Now she is the eighth who will not be returning to Congress next year. CNN project she will lose the Wyoming Republican House primary to Trump-backed attorney Harriet Hageman.

Cheney has been outspoken in her condemnation of Trump as the vice chair of the January 6th committee. Hageman has embraced Trump's false claims about election fraud in 2020.

(BEGIN VIDEO CLIP)

HAGEMAN: But I did not do this on my own. Obviously, we're all very grateful to President Trump who recognizes that Wyoming has only one congressional representative and we have to make it count. His -- his clear and unwavering support from the very beginning propelled us to victory tonight.

(END VIDEO CLIP) CHURCH: And in Alaska, incumbent Republican Senator Lisa Murkowski who also voted to impeach Trump will advance to the November election. Her main challenger is Kelly Tshibaka who has been endorsed by the former president.

Alaska's former Republican Governor Sarah Palin is hoping to fill a vacant House seat in a special election, that race will be decided by a ranked choice tabulation of votes later this month. Palin is also competing in a second primary for the same seat in the next Congress. The top four vote getters will all advance to the November election.

Ron Brownstein is CNN's senior political analyst and senior editor for The Atlantic. He joins me now from Los Angeles. Good to have you with us.

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Hi, Rosemary.

CHURCH: So Republican Liz Cheney lost her Wyoming primary race as expected but is vowing to keep Donald Trump out of office.

[03:30:01]

She -- she didn't say how exactly though. What -- what do you think she's planning to do?

BROWNSTEIN: Well, look, first of all, I mean the magnitude of her defeat, she lost by over two to one really puts an exclamation point in what we have been seeing all summer in other Republican primaries, which is that right now, today, this is Donald Trump's party.

This is a party still in for all to him. Election deniers are winning nominations across the country for governor, for secretary of state, for House and Senate races and really kind of seeding a potential crisis for the 2024 election in terms of their willingness to accept the results and potentially to try to tilt the results.

Cheney made very clear that she wants to continue the fight against that. That she views Trump as an existential threat to American democracy. And not only Trump, she said more explicitly than any other Republican that I've heard in this cycle that Americans should not vote for any of the election deniers, which are, you know, the GOP nominees for literally hundreds over well, over a hundred offices.

So, she made clear that she wants to kind of be the -- be a leader in an effort to roll back his influence in the party. What she didn't say as you know was exactly how. There are many of the Trump skeptics in the party who wanted to run for president in 2024 to bring the case against him into a Republican primary. That seems the most logical course for her, but we're going to have to wait and see what she does.

CHURCH: Yes, certainly. And then of course in Alaska, as we mentioned, we're learning that Trump critic Senator Lisa Murkowski will advance to the November election. And former Republican Governor Sarah Palin, endorsed by Trump, is hoping to fill that vacant House seat. What do you expect will happen in Alaska come November? BROWNSTEIN: Well, you know, Alaska has some unusual election rules which are all designed, they all push in the same direction toward trying to improve -- improve the position of centrist and moderates. They have what is called a jungle primary where candidates from both parties run in the same primary and the top four finishers advance the general election.

And then they add onto that a ranked voting system, which is very rare in the U.S. where people identify their second and even third choices. And those votes are reallocated as the candidates as it narrows down to the top finishers.

Because of that system, Lisa Murkowski, I think is a clear favorite to win in November, even though this Trump-backed challenger did very well against her. And it's a real wildcard in this -- in this house race, because the Democrat is actually leading Sarah Palin in the special election to fill the term through November by about five points.

And it's entirely possible that the ranked choice voters for the other Republican in the race who is more of a moderate, more of them might prefer the Democrat to Palin. So, it's not inconceivable that Democrats could win this seat at least through November. And then of course we have to have the other election in November with more rank choice voting to see what happens , for the full term.

So there's a lot of twists and turns ahead in Alaska, but I would bet on Murkowski and it would not shock me if Palin does not win in this first round.

CHURCH: Interesting. Meantime, we are also learning the FBI interviewed former White House lawyers, Pat Cipollone and Patrick Philbin about the Mar-a-Lago documents, making them the most senior ex-Trump officials to be questioned in this criminal probe. What do you make of this?

BROWNSTEIN: Well, first, you know, as I wrote in my cnn.com column this week, I mean, the juxtaposition here is really striking and ominous in many ways, Trump's hold on the Republican Party is tightening even as his legal and ethical problems are mounting.

And what that says, I think the clear signal that Republicans have sent in the way they have reacted to the Mar-a-Lago raid is that they would be even less likely to constrain his arbitrary exercise of presidential power should he be returned to the White House than they were during the four years of his presidency for, you know, in the first term.

So, I think that is a very clear signal that they are sending. I think all of these investigations, the notification to Rudy Giuliani that he is target of the Georgia grand jury. And all of these investigations are growing more serious and threatening for Trump. And yet, he is winning primary after primary with candidates who explicitly endorse his lies about the 2020 election.

And to me, you know, experts that I talked to this week, you see all of these developments suggest the Republican Party is morphing into something much more like what we see in Turkey or Italy under Berlusconi, a party that is enthralled to a strong man that is moving in authoritarian direction.

And we just don't have a language or kind of a frame of reference in American politics to deal with what are the threats that are mounting that Cheney wants to run against. But you saw today in her result how difficult it is to mobilize a constituency in the Republican Party to push back on this.

[03:35:01]

So, these could be some very choppy waters ahead, not only for Trump personally, but for American democracy overall.

CHURCH: Yes, indeed. I mean, let's look into that investigation into Donald Trump's efforts to flip Georgia's election results in 2020. His former attorney Rudy Giuliani is being ordered to face a Georgia grand jury. What do you expect will come out of that?

BROWNSTEIN: You know, it certainly seems like the Fulton County district attorney is driving toward indictments in terms of Trump's efforts to overturn the election there. And whether that reaches all the way to Trump himself, I think is a critical question.

But she has been serious both in terms of looking at, you know, figures from outside the state, like Giuliani and demanding testimony from Lindsey Graham, but also from those Republicans within the state who participated in the fake elector's scheme, which is also the target clearly of the Justice Department investigation.

I mean, we are heading toward momentous decisions at multiple levels of government, perhaps unprecedented indictments of a former U.S. president, and yet the awareness and the likelihood that even such an indictment would not invalidate him for many, perhaps most Republican voters.

It's not inconceivable that Donald Trump could be both under indictment and the front runner for the Republican presidential nomination in 2024, which is a situation that, you know, again, you think of Berlusconi in Italy when you hear that kind of prospect, but that is what we are headed toward.

And that is the kind of thing that Cheney is trying to put herself in the way of. You know, it's not going to be easy to just lodge his hold on the party. That's really the clear lesson of this year.

CHURCH: Yes. Ron Brownstein joining us live from Los Angeles. Many thanks.

BROWNSTEIN: Thank you.

CHURCH: U.S. first lady Jill Biden has COVID. It is the first time she's tested positive for the virus. She was last seen by reporters in South Carolina on Sunday, while on vacation with the president. Her communications director says the first lady is feeling good and has mild symptoms.

According to the White House she is double vaccinated and double boosted and is taking the antiviral drug Paxlovid. She will isolate in South Carolina until she has two consecutive negative COVID tests.

Well, the next generation of COVID boosters will be available in the U.S. by the middle of next month. The White House COVID response coordinator, Dr. Ashish Jha made the announcement Tuesday. The new boosters will carry instructions to help the immune system fight off the BA.4 and BA.5 strains of the virus. Jha urge people to get them as soon as possible, especially if the seasonal flu makes a comeback this year as expected.

A nuclear deal with Iran could be close. Just ahead, what Tehran is asking for just in case a future president pulls out of the agreement.

[03:40:00]

(COMMERCIAL BREAK)

CHURCH: South Korean defense officials are monitoring developments from Pyongyang after North Korea apparently fired two cruise missiles towards the sea of its western coast. This would be the first time since January North Korea has fired a cruise missile, which is not banned under U.N. sanctions.

It comes as the U.S. is scheduled to hold joint military drills with South Korea next week.

Ukraine says rescue efforts are underway after a Russian rocket strike in the Odessa region. Officials there say at least four people were wounded and several buildings destroyed. It comes just a day after explosions rocked a Russian ammunition Depot in Crimea the second such incident in a week.

The Russian defense ministry is blaming sabotage. Ukraine has not claimed responsibility, but President Volodymyr Zelenskyy urged Ukrainians to steer clear of Russian military sites.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): I am asking now all our people in Crimea and other areas in the south of the country, in the occupied areas of Donbas and Kharkiv region to be very careful. Please do not go near the military facilities of the Russian army and all those places where they store ammunition and equipment, where they keep their headquarters.

(END VIDEO CLIP)

CHURCH: To the east, Ukraine is acknowledging some Russian gains in the Donbas. One Ukrainian commander says Russian troops shell their positions up to 800 times a day, describing the situation on the ground as intense but fully controlled.

Iran is apparently worried about getting Trump again if it resumes its nuclear deal with the U.S. and other world powers. A diplomatic source tell CNN Tehran wants compensation if the U.S pulls out of the agreement like Donald Trump did back in 2018. The revive deal, like the 2015 original, would limit Iran's ability to produce a nuclear weapon in exchange for sanctions relief.

[03:45:01]

And CNN's Clare Sebastian is following these developments. She joins us live from London. Good morning to you, Clare. So, what more are you learning about Iran's call for compensation and what is the likely response from the U.S.?

CLARE SEBASTIAN, CNN CORRESPONDENT: Well, Rosemary, it should be noted we have not seen the final text as the European Union is calling it, nor have we seen Iran's written response that they submitted on Monday night in response to that final text. What we do now know via semi-official state news agency is there in Iran is that there has been a closed session of parliament happening in the last hour or so.

So, perhaps more might come out of that. They were set to review the nuclear talks in that closed session. So, we could hear more on the Iranian perspective from that.

But we do know from a regional diplomat, as you said, that one of the key sticking points now is that Iran is essentially seeking compensation should the same thing happen again, as happened in 2018 that a future U.S. administration pulls out of the deal.

They want reassurances that any sanctions relief that's imposed as that -- that's brought in as a result -- as a result of this deal stays in place. Essentially worried that a foreign business might come back and invest in Iran, then the sanctions might be reimposed and they'd have to leave straight away.

Again, all that of course, a lot of turmoil for Iran's economy. We don't know exactly how this would work. The regional diplomat telling us that no real solution is yet on the table. And as for the U.S. they are also not giving very much away. Ned Price, the U.S. State Department spokesperson on a Tuesday calling on Iran to stop bringing in what he called extraneous demands outside the original JCPOA, the original agreement.

He was referring to another Iranian request that the Iranian Revolutionary Guard Corps be taken off a list of foreign terrorist organizations. So, there are a lot of complicating factors here as they edge closer to an agreement.

As for the next steps, we know that still the E.U. and the U.S. are studying this agreement. Iran's foreign minister has said, though, that if the U.S. comes back with what he called a flexible and realistic approach they could be close to a deal. Rosemary?

CHURCH: All right, Clare Sebastian joining us live from London. Many thanks.

A family vacation for one American family turned into a terrifying ordeal after a shooting attack in Jerusalem.

CNN's Hadas Gold has the story.

(BEGIN VIDEOTAPE)

HADAS GOLD, CNN CORRESPONDENT: Shia Hersh Glick had come to Jerusalem from New York for a 10-day trip with his family to pray at the holy sites before his son Baro's (Ph) wedding. But their vacation turned to horror early Sunday morning in what Israeli police are describing as a terror attack. A man coming up to a bus stop just outside Jerusalem's old city walls and began shooting.

This is where the attack took place at the bus stop for King David's Tomb. Shia's family telling me they were actually waiting here for a taxi to take them to their hotel when the attack began.

And although Shia was struck in both the face and the neck and he fell down, he got back up despite being wounded to pull his son Baro (Ph) away. Shia's wife and daughter miraculously were unhurt.

Back in New York, family, friends like Rabbi David Niederman say they're not surprised by Shia's act.

RABBI DAVID NIEDERMAN, EXECUTIVE DIRECTOR, UNITED JEWISH ORGANIZATIONS OF WILLIAMSBURG: He shielded the most important the -- to him, which is his wife and children and sacrificed himself. So, it is beyond explanation. The father gave away as a father gives away everything to his children.

GOLD: Another family friend, Rabbi Moishe Indig says Shia had already been granted one miracle by surviving cancer years before. Now he has another.

MOISHE INDIG, RABBI AND FAMILY FRIEND: Doctors couldn't believe it. It just missed his main artery with just the thickness of a hair line.

GOLD: Eight people in total were injured, including a pregnant woman who had to undergo an emergency C-section, as well as 22-year-old New Yorker Menachem Palace.

MENACHEM PALACE, SHOOTING SURVIVOR: Bullets popup.

GOLD: The Glick's family's community back in New York are now praying for the victim's recovery and peace.

INDIG: We pray everybody should be in peace and harmony and love with each other. And we pray this shouldn't happen again to anyone.

GOLD: Hadas Gold, CNN, Jerusalem.

(END VIDEOTAPE)

CHURCH: Parts of southwestern U.S. are facing a potentially catastrophic collapse of their water supply unless they take drastic measures and cut back their water use. Those details when we return.

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CHURCH: The drought in southwestern U.S. has reached a new tier of crisis for the first time, specifically, a federally designated tier two water shortage. The designation means Arizona, Nevada, as well as Mexico will have to further cut back on water used from the Colorado River starting in January.

CNN's Isabel Rosales has more.

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ISABEL ROSALES, CNN CORRESPONDENT: Millions of Americans bracing for painful water cuts.

UNKNOWN: If we don't get water, how can we keep going?

ROSALES: A mega drought draining rivers and links throughout the southwest. Lake Mead, the nation's largest reservoir at its lowest water level on record. The drought threatening hydropower at the Hoover Dam. Now approaching its lowest point to be able to produce power. Upstream at Lake Powell, water levels just 44 feet away from stopping hydropower generation.

REP. DINA TITUS (D-NV): Crops are dying. The desert is drying. This is what goes all across the southwest.

ROSALES: And for the first time ever, the U.S. Bureau of Reclamation announcing a tier-two water shortage for the Colorado River starting in January.

UNKNOWN: It's killing us. You're at nature's mercy.

ROSALES: It's raising alarms in several states. Looking to cut up to 25 percent of the river water usage at the bureau's request for now.

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UNKNOWN: I drive around and I look at empty canals. Literally, I burst into tears over it a couple of times because I'm thinking, it's just such a hopeless situation.

ROSALES: Across the west and south, 40 million Americans are under heat alerts this week. And if it's hot now, scientists warn it could get even worse in the next 30 years. More than 100 million Americans could face a heat index above 125 degrees during the hottest days of the year.

According to climate research nonprofit First Street Foundation, their study found an extreme heat belt would stretch from Texas to the Great Lakes.

I'm Isabel Rosales reporting.

(END VIDEOTAPE) CHURCH: And thanks to spending part of your day with me. I'm Rosemary Church. CNN Newsroom continues with Christina Macfarlane, next.

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