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Iran Seeks Russia's Help with Nuclear Program; Luliia Mendel is Interviewed about Iran and Russia; David Malpass is Interviewed about the Economy; Irving Apologizes after Suspension. Aired 9:30-10a ET

Aired November 04, 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]

JIM SCIUTTO, CNN ANCHOR: Not just Iran considering a major change here.

NATASHA BERTRAND, CNN WHITE HOUSE REPORTER: That's the big question right now. And we don't actually know how Russia has responded to this request by Iran to help kind of bolster its nuclear program with additional nuclear materials, with nuclear fuel fabrication, things that could help power its nuclear reactors. And, of course, we should note that experts say that it depends really on which reactors this fuel is used for in terms of the nuclear proliferation risks. So kind of very technical stuff there.

But the bottom line is that Russia and Iran's partnership is expanding and it's worrying U.S. officials and U.S. allies just because of the shear amount of areas where we have seen Russia and Iran begin to cooperate in recent months, including, of course, in Ukraine, where Iran has provided Russia with hundreds of drones to use there.

So, the bottom line right now is that according to the U.S. intelligence that was described to us, Iran has been looking for a backup plan should nuclear talks fail. They want a contingency plan, a deal with Russia, a side deal with Russia, that allows them to reconstitute their nuclear program quickly if they have to.

And this is not only if the nuclear deal fails, of course it seems very far out of reach right now, but it is also in the event that a nuclear deal somehow goes forward. They believe that there is still a high risk. That even if a deal is struck, then a future administration could simply pull out of it, right, and sanctions could be reimposed and then Iran would be left where it is.

So, right now, the officials are watching it closely. We were told by the National Security Council spokesperson that they will work to counter any cooperation between Iran and Russia that they deem counter to their counter-proliferation efforts. But ultimately, you know, it is not something that they are going to be able to address immediately just because of the shear, you know -- the way that U.S., Russia and Iranian relations are just so, you know, hindered right now, Jim.

SCIUTTO: No question. In crisis. Natasha Bertrand, great reporting. Thanks so much. Here to discuss this and more on Ukraine, Ukrainian journalist Luliia

Mendel. She is the former spokesperson for the Ukrainian president, Volodymyr Zelenskyy.

Luliia, good to have you back on this morning. Thanks so much.

LULIIA MENDEL, UKRAINIAN JOURNALIST: Thank you for having me, Jim.

SCIUTTO: So first I want to talk about what we were just discussing there, that reporting, this increasing relationship between Russia and Iran. And Ukraine has certainly felt the effects of that with these Iranian drones wreaking so much havoc on Ukrainian soil and civilians and infrastructure there. How is that impacting the war for the Ukrainian people?

MENDEL: It's definitely very concerning that autocracies keep united and become stronger in this way because they can develop some new maintaining weapons or nuclear deal or, you know, anything else which can cause a threat to the world.

What we see here on the ground, that we can wake up from the sound of explosions and then figure out that they are kamikaze drones right above Kyiv attacking residential buildings, playgrounds, parks. You know, I saw this terrible video of a Ukrainian girl hiding under the table and saying that she saw a robot that wanted to kill her. And this is the reality in which our kids are growing up right now. And we are trying to deal with this. We are trying to adjust.

SCIUTTO: Yes.

MENDEL: And we are trying to ask for the air defense to kill these air drones that are, you know, just -- just killing Ukrainians.

SCIUTTO: Yes. Yes. Close the sky as Ukrainians have been saying for months now.

This is clearly - I don't want to call it a new strategy by Putin, but perhaps a doubling down on a strategy given that he can't win on the battlefield, his forces being pushed back there. He appears to want to bleed the Ukrainian people, the country, further. Can Ukraine withstand that?

MENDEL: Actually, this is such a losing strategy when Russian army is being defeated on their battlefield, they keep attacking the civilian infrastructure, civilians, trying to blackmail us, to kneel somehow to Russia, to agree for the way Russia behaves here, for all those terrible actions what Russia is doing to our people, to our infrastructure, to our cities. But what I see here, people don't have any step back. Like we are really -- feel that we have high morale here and the more Putin attacks us, the more we feel resilient and stronger.

Let me say that right now we are sitting here with a lot of blackouts. In Kyiv, there were 450,000 of residents who woke up to know that there is no light. Personally, I had blackout finished only 30 minutes ago. Yesterday I didn't have light for ten hours. We also have lack of water and lack of heating because Putin destroys

our infrastructure. At the same time, we are very angry. And it's not any decision to collapse or to give up to Putin. So, we feel stronger that we can win in this war.

[09:35:02]

SCIUTTO: Let me ask you this, because there is some criticism inside this country as well, we've heard the pleas from Ukrainian officials for some time, but criticism that the Biden administration, the U.S., while it's giving many weapons, is it's not giving them quickly enough. And you mentioned specifically, for instance, air defense systems. Is that help coming too slowly for Ukraine in the face of this?

MENDEL: Well, let me say that this terrible Russian war changed the policies and politics around the world and all the countries needed to adapt. And we are very grateful to the United States that they stand with us almost shoulder to shoulder helping with the weapons, with intelligence, what is very important, and with differing types of instrument and, you know -- different types of equipment that can be helpful to Ukrainian soldiers and volunteers here on the ground.

So, right now we just hope that the bilateral support to Ukraine will stay as strong as it is now after midterm elections.

Final question, if I can. You've been well aware of the nuclear threats that -- both in rhetoric and hints, et cetera, that the Russian president and other officials have made. What is the Ukrainian level of concern right now that Russia will follow through on such a threat?

MENDEL: Actually, it's huge because we see that Putin does not have any limits. He is so aggressive and so angry. And he is aimed to destroy Ukraine so much that we don't know what can stop him.

Today he told that there is a necessity to evacuate people from Kherson. This is my hometown. This is my home region. And I'm very much concerned because we don't know, maybe they want to do something terrible there.

Actually, this is the same what we heard yesterday from - from Russian - pro-Russian collaborator who is appointed there as an authority, and he said that something terrible is going to happen there.

While we also have heard from the U.S. intelligence that Russian military leaders were discussing usage of nuclear tactical weapons and we are afraid maybe he would like to use a tactical weapons there.

But also let me remind that there is the Zaporizhzhia nuclear power plant that is fully under control of Russians. And they shelled there. And they control it. And we are really afraid what's going to happen there.

SCIUTTO: Yes.

MENDEL: So this threat is realistic and we are all concerned about it here.

SCIUTTO: That's right. An attack on that plant could be a nuclear attack of a different type.

Luliia Mendel, we wish you luck and we wish you safety as well.

MENDEL: Thank you for having me.

SCIUTTO: Still ahead, Wall Street is reacting this morning to those new job numbers. Look, it's up nearly 400 points, just over 1 percent. As the latest jobs report shows, the U.S. economy added jobs in October, though fewer than the previous month.

We are joined next by the president of the World Bank, David Malpass, for an outlook for not just the U.S. but the world economy.

(COMMERCIAL BREAK)

[09:42:42]

SCIUTTO: Let's take a look now at how markets are reacting to the latest jobs report. The last one before the midterms. You see them up there 300 points now or so, just about a percent. The U.S. economy added some 261,000 jobs in October. Unemployment ticked up slightly to 3.7 percent. That job gain was slightly more than analysts predicted. It was, however, the slowest job growth in this country in almost two years.

Joining me now to discuss the picture here in the U.S. and globally, David Malpass. He is president of the World Bank.

David, thanks for taking the time this morning.

DAVID MALPASS, PRESIDENT, WORLD BANK: Good morning, Jim.

SCIUTTO: So, first your read on those numbers. It was higher than some economists had forecast, but still slower than the previous month. Do you see, in those numbers, and other trend lines, a slowing U.S. economy?

MALPASS: I think there is some of that and so bad news is good news for the equity market for the moment. That's all I can see there. For -- looking into 2023, we have to find a way to have a lot more GDP, a lot more production in the U.S. to help the rest - to help the U.S. and the rest of the world.

SCIUTTO: As you look at these interest rate rises, you've had four in a row now of three quarters of a point, and you even had the Fed chairman, Jerome Powell, say that the path to a soft landing is narrowing in his words. Do you see that as well, that these interest rate hikes might indeed tip the U.S. economy into recession?

MALPASS: I think that's possible. And, you know, we're looking and worrying about a world recession in 2023.

SCIUTTO: Yes. MALPASS: The U.S. is a little stronger than other economies, so that's OK. But the challenge here is probably interest rates were too low for too long. I say probably, but that's clearly the case. And so they're trying to catch up and move them to neutral and so that process is underway, but it means a long, repricing of global assets, which is the middle of what we're in now.

SCIUTTO: I do want to talk about the repricing of assets.

Before we get there, for a moment, when you look to the world economy, because there are so many pieces to that, right, I mean the ongoing supply chain issues, China's economic slowdown, of course the debate here frames it as a party versus party issue. But as a president of the World Bank, what is actually driving a slowing of the world economy?

[09:45:02]

MALPASS: That's really important. So, it's the energy realignment that's going on from the Russia war and also then the severe slowdown in Europe, including the U.K., and also now China is doing another lockdown. So, you've got quite a few parts of the advanced economies outside the U.S. that are really slowing down.

And I have to say, the biggest hit is on poor people around the world. Wherever they are, they're feeling inflation and they're feeling the rate hikes. And for the developing countries, they're feeling currency weakness, which pushes up commodity prices there as well.

SCIUTTO: Those sound like forces that politicians in this country or any individual country can't really move that effectively. Is that right?

MALPASS: No, I think each -- especially the U.S., it's the world's biggest economy, can produce a lot more. If you say, is it possible for the U.S. to produce 5 percent more? Yes. Could it produce 10 percent more energy? Yes. And would that help the world? Absolutely. It would be a massive benefit. So, it's really important, as we're in this inflation, stagflation spiral that we've - that we've highlighted and worried about, that we get out of it as quickly as possible.

SCIUTTO: Yes.

MALPASS: You can think of a goal being, how do you get to interest rate neutral at as low a level as possible so that it causes less damage for the world?

SCIUTTO: So you're talking about increasing production in this country. What's the plan? What are the steps that would be needed to do that?

MALPASS: Every day trying to help and allow small businesses to get access to capital. That's one of the problems. The whole system is set up to really concentrate capital at the top. And that's not really the people that create attractive jobs and new jobs, innovative jobs for young people. In "The Washington Post" this morning I saw the geothermal project

that's being blocked in Nevada. That's energy that is needed. And as you look just day by day, there's one story after another of things that are -- that are not -- that are being done that block production rather than enable it.

SCIUTTO: Final question just because you brought it up before, and that is just about assets worldwide. We've already seen the stock market come down, although it's come up off its lows. But as you mentioned, ten years of very loose monetary policy, low interest rates, quantitate testify easing, et cetera. Let's, you know, prices increasing for everything, including people's homes. Watching right now, are you saying to folks at home, and then folks more broadly, that the world is in for a bit of a bubble burst? I mean is it too strong to say that?

MALPASS: I don't think too strong. I call it a repricing. That means some prices have to go down quite a bit. But the big challenge for the poor, for developing countries, is that that long period is at a point where they don't have enough money for health care, for climate, for education. One of our big worries has been the back sliding on education because of the school closures. And so these are core issues that -- and I call it a crisis facing development. If you look out and say you're going to take four years to reprice assets, that puts a huge burden on developing countries and the poor especially.

SCIUTTO: No question. Four years is a long time, too.

David Malpass, really do appreciate the conversation this morning.

MALPASS: Thanks, Jim.

SCIUTTO: Still ahead this hour, suspension, then an apology. NBA player Kyrie Irving back in the news, facing significant blowback after tweeting a link to an anti-Semitic documentary. Why the league has now decided to take action.

(COMMERCIAL BREAK)

[09:53:14]

SCIUTTO: NBA player Kyrie Irving now said he is sorry. This after the Brooklyn Nets suspend him for at least five games. The controversy over a documentary that Irving promoted on Twitter, which civil rights groups blasted as anti-Semitic. The team said in a state it was, quote, dismayed. Irving refused to apologize or, quote, acknowledge the hateful material in that film.

CNN's Brynn Gingras joins me now with details.

So, Brynn, you know, you had this, I don't want to call it a settlement, but donation yesterday, an agreement it seemed. But now you then had the league act. So where does this all stand?

BRYNN GINGRAS, CNN CORRESPONDENT: Yes, I mean, Jim, it's been quite a week for Kyrie Irving and the Net franchise. Like you said, they had this agreement that they were going to each, the Nets team and Kyrie Irving, give $500,000 to the ADL. But then Kyrie Irving went forward and said this.

(BEGIN VIDEO CLIP)

KYRIE IRVING, BROOKLYN NETS POINT GUARD: I didn't mean to cause any harm. I'm not the one that made the documentary.

I cannot be anti-Semitic if I know where I come from.

(END VIDEO CLIP)

GINGRAS: I mean essentially Playing the victim in that press conference after that agreement was made. Well, that really pissed off the Nets. So, what they said, basically, in a follow-up statement was that he really wasn't learning anything and that he had multiple chances to apologize and he didn't and he was really just unfit to be associated with the Nets franchise, suspending him for least five games.

Then the ADL came forward and said, you know what, that $500,000, you clearly have some more education, some learning to do. We can't accept that donation in good consciousness.

So, it wasn't until really early -- late last night, really almost at midnight, where Kyrie Irving posted a sentiment, a statement online, and I want to read part of that to you. It said, to all Jewish families and communities that are hurt and effected from my post.

[09:55:01]

I am deeply sorry to have caused you pain and I apologize. So, this is the first time he actually said I'm sorry, Jim, after, again, multiple times where he just would not apologize. Not take ownership for what he had said. And he said he initially was reacting to being called, you know, anti-Semitic, when he should have been actually acknowledging what he said and why it was wrong.

However, there is still criticism out there, Jim, did this go far enough. And you have to remember, we all know, Kyrie Irving, extremely polarizing player, always has been. This, you know, criticism isn't just on him. It's also on the NBA and on the Nets franchise at how long they've taken, how they have responded to this continued controversy.

SCIUTTO: No question. Brynn Gingras, thanks so much for covering.

GINGRAS: All right.

SCIUTTO: Also this morning, synagogues in New Jersey are on alert after the FBI said it received credible information about a broad- based threat. The agency says it is taking proactive measures now to urge synagogues to increase security measures. The FBI alert came in response to anti-Semitic comments in an online forum frequented by extremists. The New York attorney general says there will be increased patrols in the area as well. Still ahead, a major development on the campaign trail. Not about

Tuesday's midterm elections. What we're learning now about former President Trump's 2024 timeline.

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