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U.S. Releases Jobs Report and GDP; Biden Meets Defense Leaders as Ukraine War Grinds On; Putin Claims Ukraine Directly Controlled from U.S.; Israel, Lebanon Set to Sign Historic Maritime Deal; August Airline Complaints Up 320 Percent from Pre-Pandemic Levels. Aired 4:30-5a ET

Aired October 27, 2022 - 04:30   ET

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

[04:30:00]

MAX FOSTER, CNN ANCHOR: Welcome back to CNN NEWSROOM. I'm Max Foster. If you are just joining us, do let me bring you up to date with our top stories this hour. The head of the Miss U.S.A. Pageant has been suspended following allegations of cheating. Contestants claim Crystal Stewart rigged the competition for this year's winner to claim the title. Stewart denies those allegations.

Donald Trump has until November 4th to comply with a subpoena to provide documents and testify to the January 6th committee investigating the Capitol riots. On Wednesday Trump's team accepted the subpoena. It's unclear to what extent Trump will actually comply though.

U.S. stocks are looking for a rebound after some big losses on the Nasdaq. You can see there the futures are all up currently. The Dow is up half a percent. But the others are up only fractionally. Let's see how that goes. On Wednesday the Dow was basically flat. The Nasdaq dropped more than 2 percent though after disappointed earnings reports from Microsoft and Google's parent company Alphabet. The S&P 500 finished three quarters of a percent lower.

Speaking of slumps, Meta's stock took a major dive on Wednesday falling 17 percent after the Facebook parent company posted a quarterly revenue loss for the second time since going public. Meta- founder and CEO Mark Zuckerberg says an industry wide decline in online advertising is to blame but says the company will work to come back stronger than ever. This will shave even more off Zuckerberg's net worth. Earlier this year he lost an estimated $29 billion on a single day after Meta stocks tanked.

The U.S. government releases its weekly jobless report today along with third quarter Gross Domestic Product. Economists estimate that the board measure of economic activity will show at least 2.4 percent growth. But they warn that that may be the bump before the slump meaning that things will slow down in the months to come. All of this could have a major impact on the Federal Reserve's decision on interest rates when they meet next week.

U.S. President Joe Biden says his administration is working to lower costs of everyday living for families and is detailing plans to crack down on so-called junk fees. This comes as the economy and inflation remain top concerns for voters ahead of the midterm elections. Among the new steps he's requiring that banks avoid charging junk fees and new guidance meant to curb the use of surprise overdraft fees as well.

Ukraine was high on the agenda when U.S. President Joe Biden also met with Defense Department leaders on Wednesday. The meeting followed concerns in recent weeks that Russia may resort to using tactical nuclear weapons in Ukraine. Phil Mattingly reports.

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PHIL MATTINGLY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Now President Biden huddled with his top military and civilian leadership in the Department of Defense at a time of increased tensions really across the globe. Certainly, in the Indo Pacific, China's provocations as it relates to Taiwan, North Korean missile testing, the possibility of a nuclear test coming in the next days or weeks.

And certainly, in the most acute manner, Ukraine. U.S. officials have been grappling with the escalations presented by President Vladimir Putin over the course of the last several weeks. A very real, palpable concern that these escalations may move to the point where Putin considers the utilization of tactical nuclear strikes. Something U.S. officials have warned privately to Russia in very definitive terms that there would be a serious response.

I mean, the president has warned in ambiguous more terms that there would be a very serious response from the U.S. side as well. At this point in time, U.S. officials made clear they have not seen any shift in Russian nuclear posture. They've not seen any moves by Russian forces or Russian leadership to go down that path.

But concerns about false flag operations related to dirty bombs allegations that Russian leaders presented over the course of the last several days have really only animated the discussion inside the administration, inside the White House.

One thing remains very clear, the United States willingness to provide support for Ukraine, despite some of the political dynamics currently at play on the domestic front. That is not shifting any time soon. President Biden and his team making clear there will be more defense assistance sent in the weeks and months ahead. More humanitarian assistance as well. And the president making clear that the Western coalition that has come together over the course of the last eight or nine months remains very strong. Take a listen.

JOE BIDEN, PRESIDENT OF THE UNITED STATES: We're going to continue to support Ukraine together with our allies and partners around the world as it defends itself against Russia's brutal aggression. We have to keep NATO strong and united, as we meet the threats of today and threats of tomorrow.

MATTINGLY: Now all of the underscoring that even at the height of U.S. political season, this is front and center on President Biden's plate, front and center for the administration. There is an acknowledgment internally that for all of the domestic tumult, for all of the political season that the administration finds itself in at this moment, and the lead up to those midterms election, the geopolitical crisis, the geopolitical tensions probably take up more time than anything else.

Phil Mattingly, CNN, the White House.

(END VIDEOTAPE)

FOSTER: In southern Ukraine the battle lines have been drawn in port city of Kherson. An advisor to Ukraine's President says the heaviest of battles against occupying Russian forces is coming.

Right now, fierce fighting is reported in the Donetsk region furthest east. And Russian strikes hit Zaporizhzhia and Kyiv region today. Although no casualties are reported there.

More than 70,000 civilians have left Kherson in the past few days along with Russian officers and elite military units. Ukraine says Moscow is sending in its newest recruits which it describes as cannon fodder.

Meanwhile, on Wednesday, Vladimir Putin repeated Moscow's claim that Ukraine is planning to use a so-called dirty bomb to provoke Russia. Ukraine and its Western allies say that claim is a false pretexts for escalating the war.

CNN's Christiane Amanpour asked Russia's ambassador to the U.K. about the claim.

(BEGIN VIDEOTAPE)

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: Is Russia trying to escalate this war?

ANDREI KELIN, RUSSIAN AMBASSADOR TO THE U.K.: First of all, in his conversation -- I mean, the Minister of Defense Shoigu, he assured every minister once again that we are not going to use nuclear weapon. And there was no single statement, neither by the president or responsible guys. I do not take journalists, of course, at the -- in all of this talks on the television. So, Russia is not going to use nukes. So, it is out of the question.

AMANPOUR: And your president has said that too?

KELIN: He never mentioned a possibility of using the --

AMANPOUR: Yes, but he has. You know --

KELIN: But that's speculations --

AMANPOUR: -- he's raised veiled threats and he's worried everybody.

KELIN: No, no. There are speculations, and allegations, and issues that are trying to be -- which he has not pronounced, in fact.

(END VIDEOTAPE)

FOSTER: CNN's Clare Sebastian joins us here with the very latest. We're trying to figure out what Putin's narrative is here accusing the West of escalating effectively.

CLARE SEBASTIAN, CNN CORRESPONDENT: I mean, constant reversals essentially. It is very confusing at the moment, Max, just to take a step back. We've had weeks of these escalating, very thinly veiled nuclear threats. Then we have Russia accusing Ukraine of making a dirty bomb without evidence. The West worries that it's Russia might actually be planning something like this.

Then we have the ambassador to the U.K. telling Christiane that this is out of the question that Russia will ever use nukes. But at the same time, has he saying there, Putin is personally supervising nuclear drills and Russia and warning of a, you know, high list of global conflict. So, clearly this is messaging directed at the West, Max. Take a listen to what else he had to say on Wednesday.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): What they are trying to achieve we see on the example of Ukraine which has become an instrument of American foreign policy, the country has practically lost sovereignty and is directly controlled from the United States.

(END VIDEO CLIP)

[04:40:00]

SEBASTIAN: A reminder that it is Russia that has invaded Ukraine and just recently illegally annexed about 20 percent of its territory. So, the accusation that the U.S. or the West is trying to trying to take Ukraine sovereignty is another reversal of the truth here. But I think the reality of all of this, Max, is that, you know, Russia is not backing away from this dirty bomb accusation and this confusing rhetoric that all of this puts it -- along with what's happening on the battlefield -- much further away or increasingly further away from the possibility of negotiations.

FOSTER: And the idea that all of this is a pretexts for Russia to be involved in some sort of nuclear attack, is there any evidence or intelligence to back that up as far as we know?

SEBASTIAN: No, it's very linked. The U.S. defense team has reiterated again this week that they have been closely monitoring it but as of yet they don't see any evidence that Russia is either preparing or planning any kind of nuclear attack. But of course, they have to take this rhetoric seriously and the fact that these nuclear drills, even though they're routine, even though annual, are taking place at the same time.

FOSTER: Clare, thank you very much. Still to come, after getting kicked to the curb by Adidas and other

brands, rapper Ye gets physically removed from another company. More on that story later this hour.

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RISHI SUNAK, BRITISH PRIME MINISTER: Mr. Speaker, I have been honest. We will have to take difficult decisions to restore economic stability and confidence. And my honorable friend the Chancellor will set that out in a statement in just a few weeks. But what I can say as we did during COVID, we will always protect the most vulnerable. We will do this in a fair way.

(END VIDEO CLIP)

FOSTER: Rishi Sunak, Britain's newest leader, there in his first Prime Minister's questions in Parliament. He faced a grilling from the opposition Labour Party leader and also acknowledged the difficult conditions that lie ahead as if government try to tackle the country's economic crisis. The British government has announced it is delaying its budget by more than two weeks.

Two countries technically at war are cutting a deal to tap into unexplored oil and natural gas.

[04:45:00]

We're talking about an area in the Mediterranean Sea that's been disputed between Israel and Lebanon for years now. But now the two countries are set to sign an agreement to solve their border dispute and by doing so open the area to immediate energy exploration and improved regional security. Hadas Gold is standing by for us in Jerusalem. It's extraordinary actually that they managed to reach some sort of agreement on this.

HADAS GOLD, CNN CORRESPONDENT: Yes, Max, people have tried in the past and failed to get these two countries as we noted technically at war to reach an agreement. Keep in mind, in Lebanon you still have the Iran back militant group Hezbollah who had in the past vowed to destroy Israel. And yet here we are today the formal signing day of this agreement between these two countries.

Now the motivating factors behind this, what's potentially changed in the past few years are a few things. For one, you have Europe desperately seeking new sources of energy. And Israel had already had a gas field ready for pumping. You have Lebanon in dire economic straits, desperate for new sources of income. And Israel also really wants to see some more calm on its northern borders especially with Hezbollah.

And so, all of this put together, Amos Hochstein, the U.S. envoy -- the one who mediated this agreement -- managing to get it through. Now this morning the Lebanese negotiator calls it a new era and the Israeli Prime Minister Yair Lapid, just in the last few minutes, called it a diplomatic achievement knowing that it's not every day an enemy state recognizes the state of Israel in a written agreement in front of the entire international community.

So, both the Israeli and Lebanese sides have now formally agreed to the agreements within their own governments. Now the agreement is being flown up to -- from the Israeli side -- to northern Israel where then they will have a meeting at the U.N. base on the Lebanese side in a place called Naqoura.

We're still not entirely clear whether we will actually see images of both the Lebanese and the Israeli negotiating teams together in the same room with the Americans. Because, Max, although we keep talking about this agreement between Lebanon and Israel, it's actually each side is signing an agreement with the United States who mediated it. So, there's no direct agreement between the two of them.

What's also notable is after that signing in Naqoura, is that both sides will submit the coordinates of this maritime border to the United Nations. This is the first time that this as happened between these two countries. Sort of a de facto recognition. And it's a major change to what's happening here for Israel, they really hope that this will mean that there will be some calm on the northern border, especially with Hezbollah. And Israel's gas field is ready to start pumping gas to Europe right away. In Lebanon, even though there gas field is not yet online, they hope that just the fact that there will be explorations, they will potentially be pumping gas, that will bring much-needed investment to their economy -- Max.

FOSTER: Well, we'll see. Hadas, thank you very much indeed for joining us in Jerusalem.

Coming up, airline complaints are up more than 300 percent from pre- pandemic levels. We get details on what's driving flyers crazy straight ahead.

[04:50:00]

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FOSTER: Not a good time for rapper Ye to be around shoes. Just one day after Adidas terminated nearly a decade of work together. The artist who changed his name from Kanye West was escorted from the premises of another shoe company. Executives from Skechers say he arrived unannounced and was filming with no authorization in that building. The company says it has no intent of working with the musician and designer who in recent days has lost multiple brand deals because of antisemitic comments he made.

Elon Musk visited Twitter staff at headquarters office on Wednesday carried a sink.

He tweeted this video of himself with words, entering Twitter HQ let that sink in.

Musk has until the end of the week to close his $44 billion deal to buy the tech company or face trial. He's reportedly planning to finalize the deal on Friday bringing an end to months long battles over his acquisition.

Roughly 37 million bottles of Pine-Sol products have been \ recalled because they could contain a potentially dangerous bacteria. Clorox the makers of the pine scented cleaner say the affected cleaners could cause harm to people with compromised immune systems or people with external medical devices. So far, no injuries have been reported. The original pine scented Pine-Sol products are not included in the recall. For more information you can go to pinesol.com.

Well, this probably won't come as a surprise to many people. A new federal data shows August airline passenger complaints are up compared to pre-pandemic levels. And how much they're up may or may not astound you. CNN's Pete Muntean has the latest on what's behind the numbers.

(BEGIN VIDEOTAPE)

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Max, these new numbers show that thousands of passengers have been so fed up with the airlines that they're turning to the federal government as a last resort. This new data was just released by the Department of Transportation and it says that passengers submitted more than 7,000 complaints to the federal government during the month of August. That is the last full month of what we call the summer of flight cancellations. Remember, the airlines canceled about 55,000 flights in the U.S. between Memorial Day and Labor Day -- According to FlightAware.

The big take away from these new numbers, August complaints were up 6 percent compared to the month before. But get this, the numbers are 320 percent higher than back in 2019 before the pandemic. It is a lot of anger about the airlines. The data shows the top of issues for passengers was over cancellations and delays, followed by problems with baggage -- mainly with foreign carriers. Also, issues getting refunds from the airlines.

The data also included details on who canceled the most flights in August. United took the top spot, followed by American Airlines and then Southwest. What is interesting, is that these new numbers are coming out as so many of you are considering buying tickets from the airlines for the holidays. The message from the Department of Transportation is that the airlines must perform -- Max.

FOSTER: Pete there.

Now fans of Rihanna can thank the black panther for the latest music release. Her latest single "Lift Me Up" comes out on Friday and she put out a little teaser on Twitter.

[04:55:00]

(BEGIN VIDEO CLIP)

(RIHANNA TEASER ON TWITTER)

(END VIDEO CLIP)

FOSTER: The song will be featured on the sound track for the new Marvel sequel "Black Panther: Wakanda Forever." It is Rihanna's new music as a solo artist in six years. The song is written as a tribute to the late "Black Panther" star Chadwick Boseman who died two years ago after battling colon cancer.

Kentucky coal miner Michael McGuire is so excited to take his little boy to the first University of Kentucky basketball game that he rushed straight from work to the game. As you can see McGuire was still covered in black coal dust from his hours underground but he didn't care. He just wanted to share his son's experience and didn't want to waste any time getting cleaned up first. Have a listen.

(BEGIN VIDEO CLIP)

MICHAEL MCGUIRE, COAL MINER: He had a blast. He was dancing. And every time they would slam dunk it, he would -- he would go crazy. I was just really excited to make all these memories with my kids and my wife. It's pretty much either come straight there or miss half the game going home to take a shower.

(END VIDEO CLIP)

FOSTER: Wildcats coach John Calipari was so moved by McGuire's selfless devotion to his family that he offered the family tickets to a home game later that season.

Finally, this hour, the U.S. Powerball jackpot has climbed to $800 million after no ticket matched all the winning numbers in last night's draw. That makes the prize to Saturday's contest the second largest in Powerball history. The odds of winning are a daunting 1 in 292 million. It's worth a go maybe.

Thank you for joining us. I'm Max Foster in London. "EARLY START" with Christine Romans is up next.

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