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CNN International: Kidnapped Americans Found, Two of Them Dead; Rupert Murdoch Admits Top Hosts "Maybe Went Too Far"; Republicans Outraged by Fox's Use of January 6th Footage; Fed Chair Predicts Higher Than Expected Rate Hike; Inflation Worries; New Senate Bill Would Give Biden Administration Power to Ban TikTok; U.S. New Storms to Bring Heavy Rain, Flood Threat to California. Aired 4-4:30a ET

Aired March 08, 2023 - 04:00   ET

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

[04:00:00]

BIANCA NOBILO, CNN ANCHOR: Hello and a warm welcome to our viewers joining us in it states and all around the world. I'm Bianca Nobilo.

MAX FOSTER, CNN ANCHOR: I'm Max Foster, joining you live from London. Just ahead on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Attacks on U.S. citizens are unacceptable.

UNIDENTIFIED MALE: We think our Mexican and U.S. law enforcement partners for their efforts to find these innocent victims. And the task forward is to ensure that justice is done.

UNIDENTIFIED FEMALE: Do you know how many people who are currently working, going about their lives, will lose their jobs?

UNIDENTIFIED MALE: Inflation is extremely high and it's hurting the working people of this country badly.

UNIDENTIFIED MALE: He is constantly pointed to China as a critical competitor to the U.S.

UNIDENTIFIED MALE: We need a more comprehensive approach to evaluate in mitigating these threats posed by these foreign technologies from the adversarial nations.

(END VIDEO CLIP)

ANNOUNCER: Live from London, this is CNN NEWSROOM with Max Foster and Bianca Nobilo.

FOSTER: It's Wednesday, March the 8th, 9 a.m. here in London, 3 a.m. in eastern Texas and Matamoras Mexico, where authorities are working to learn more about the deaths of two of the four Americans kidnapped last week. All four of the victims were found on Tuesday.

NOBILO: One man is in custody in connection with the kidnappings, accused of doing surveillance on the victims. But officials haven't said if he's tied to a criminal group. The White House condemned the kidnappings.

(BEGIN VIDEO CLIP)

KARINE JEAN-PIERRE, WHITE HOUSE PRESS SECRETARY: Attacks on U.S. citizens are unacceptable, no matter where or under what circumstances they happened, we will continue to work closely with the Mexican government to ensure justice is done in this case.

(END VIDEO CLIP)

NOBILO: Meanwhile, the two survivors are being treated at a Texas hospital. Eric Williams's wife tells CNN he was shot in both legs. Latavia Washington McGee was not injured. Her mother told our affiliate WPDE that her daughter is doing OK, but obviously traumatized from the fact that she had to watch her friends die. CNN's Rosa Flores has the latest development.

(BEGIN VIDEOTAPE)

ROSA FLORES, CNN CORRESPONDENT (voice over): Two of four missing Americans are back in the United States and receiving medical treatment in Texas after being kidnapped in Mexico after what a US official tells CNN was a case of mistaken identity.

Two members of the party were found dead and one of the survivors is severely injured with a bullet wound to his leg according to US and Mexican officials.

In the party of four, Latavia Washington McGee and Eric Williams survived. Zindell Brown and Shaeed Woodard were killed.

NED PRICE, US STATE DEPARTMENT SPOKESPERSON: We're providing all appropriate assistance to them and their families. We extend our deepest condolences to the family and loved ones of the deceased.

FLORES (voice over): They crossed the border from Brownsville Texas into Matamoros, Mexico on Friday for McGee to obtain a medical procedure according to a friend of McGee's. They drove a white minivan with North Carolina plates across the border and got lost while trying to locate the medical clinic where they were headed the friend told CNN.

Before they were able to locate the clinic, disturbing video shows the aftermath of the kidnapping as heavily armed men loaded them into a white truck and transported them to various locations to evade capture according to Mexican officials.

The Mexican President says those responsible will be found and punished. A U.S. official familiar with the investigation told CNN they believe a Mexican cartel kidnapped the group after mistaking them for Haitian drug smugglers.

The State Department has issued its highest level four warning Do not travel to Tamaulipas State where the group was abducted due to heavy crime and kidnapping in the region. JOHN MILLER, CNN CHIEF LAW ENFORCEMENT AND INTELLIGENCE ANALYST: There are many people who cross over that border for these medical appointments.

JOHN KIRBY, NSC COORDINATOR FOR STRATEGIC COMMUNICATIONS: Attacks on US citizens are unacceptable, no matter where or under what circumstances they occur.

FLORES (voice over): McGee and Williams are now under the care of the FBI and U.S. officials are making arrangements to bring home the bodies of Brown and Woodard.

PRICE: We want to see accountability for the violence that has been inflicted on these Americans.

FLORES: The building that you see behind me, that's where we believe that the Americans are receiving medical treatment. The hospital has not issued a statement with the patients permission. Now the FBI, for its part, saying that this is an ongoing criminal investigation and that it is working with federal law enforcement partners, both here in United States and in Mexico, to get to the bottom of who did this.

[04:05:02]

Now, the FBI also saying that they are working to recover the victims, the deceased victims from Mexico back to United States, so that they can reunite them with their families.

Rosa Flores, CNN, Brownsville, Texas.

(END VIDEOTAPE)

FOSTER: Police in Brownsville say Friday's kidnapping should not define Mexico. But when people go to this part of Mexico for work, vacation, or medical procedure, there's always an element of risk.

(BEGIN VIDEOTAPE)

MARTIN SANDOVAL, BROWNSVILLE POLICE DEPARTMENT SPOKESPERSON: Here in Brownsville, a lot of people go to Mexico for doctor visit, veterinarian, dentist, prescription medications, or sometimes even just to go to dinner. It is something that has not changed. There's hundreds of people that go through the bridge daily. And right now, I think everybody is a little more apprehensive. But I'm sure that's not going to stop several people that need to go their doctor visits.

GUSTAVO VALDES, CNN EN ESPANOL CORRESPONDENT: This is a state that is home to the Gulf cartel, so it is a very violent criminal organization. But typically, you see these attacks among themselves, and what you see is collateral damage, like we saw with this woman who was shot in this confrontation with the four Americans.

Typically, Americans are safe as long as they are there during the day. Typically, the criminal organizations don't want to get into this kind of publicity. But the danger is always there. That's why the State Department has the alert, to be careful when he crossed into Mexico, especially in this part of the country.

(END VIDEOTAPE)

FOSTER: Now, the hits just keep coming for Fox News. Humiliating new revelations are emerging in court filings tied to a massive lawsuit against the right-wing network for promoting lies about the 2020 U.S. presidential election being stolen.

NOBILO: In an email released Tuesday, Fox Corporation Chairman Rupert Murdoch admitted in January 2021 that maybe talk host Sean Hannity and Laura Ingram, quote, went too far.

FOSTER: This past January, Murdoch rejected conspiracy theories about Dominion voting systems. CNN's Paula Reid has further details from the transcript.

(BEGIN VIDEOTAPE)

PAULA REID, CNN CORRESPONDENT: I have here one of the excerpts right here, let me read it to you.

He is asked: Have you ever seen any credible evidence to suggest that Dominion was engaged in a massive and coordinated effort to steal the 2020 presidential election?

He says simply, no.

He is asked, have you ever believed that Dominion was engaged in a massive and coordinated effort to steal the 2020 presidential election?

Again, he says no.

He's asked: You've never believe Dominion was involved in an effort to delegitimize and destroy votes for Donald Trump, correct?

He replies, Murdoch says: I'm open to persuasion but no, I've never seen it.

I mean truly remarkable. And right now, both sides of this historic case are asking a judge to just resolve it in their favorite without a trial. If that doesn't happen, this will go to trial in Delaware on April 17th and it will be a historic case. I mean, there's really been never anything like this. It will absolutely be something to watch. And evidence like this, again, not helpful for Fox.

(END VIDEOTAPE)

NOBILO: And there's more. Host Tucker Carlson was caught bashing Trump in private text messages, sent shortly before the January 6th attack on the U.S. Capitol. Carlson texted that he hates Trump, quote, passionately and calls his behavior demonic, destructive, and disgusting.

FOSTER: Tucker Carlson is also facing a barrage of criticism from Republicans and Democrats alike for cherry-picking video from January 6th and downplaying the violence. Carlson says it was neither an insurrection nor deadly.

NOBILO: He even accused Democrats and the media of lying about the death of Capitol Police officer Brian Sicknick, who was assaulted by rioters and then died the next day. CNN's Sara Murray reports.

(BEGIN VIDEOTAPE)

SARA MURRAY, CNN CORRESPONDENT (voice-over): After Fox News attempts to whitewash the deadly attack on the U.S. Capitol even some Republicans are setting the record straight.

UNIDENTIFIED MALE: And I think it was, yes, it was an attack on the Capitol.

SEN. KEVIN CRAMER (R-ND): I think that breaking through glass windows and doors to get into the United States Capitol against the orders of police is a crime to somehow put that in the same category as a, you know, permitted peaceful protest is just a lie.

UNIDENTIFIED MALE: I think it's (BLEEP).

MURRAY (voice-over): Fox hosts Tucker Carlson using curated clips of the Capitol attack to falsely claim, there was no violent insurrection.

TUCKER CARLSON, FOX NEWS HOST: These were not insurrectionists. They were sightseers.

MURRAY (voice-over): House Speaker Kevin McCarthy gave Carlson exclusive access to thousands of hours of video from January 6th.

SEN. CHUCK SCHUMER (D-NY) SENATE MAJORITY LEADER: Speaker McCarthy is every bit as culpable as Mr. Carlson.

MURRAY (voice-over): As U.S. Capitol Police Chief Tom Manger tore into Carlson's program for its, quote, offensive and misleading conclusion. The program conveniently cherry-picked from the calmer moments of our 41,000 hours of video -- Manger wrote in an internal memo. The commentary fails to provide context about the chaos and violence that happened before or during these less tense moments.

[04:10:00]

SEN. MITCH MCCONNELL (R-KY): It was a mistake in my view for Fox News to depict this in a way that's completely at variance with what our Chief Law Enforcement official here at Capitol thinks.

MURRAY (voice-over): The Chief also defending fallen Officer Brian Sicknick, who was attacked with chemical spray and physically fought members of the mob. After Carlson questioned links between his death and the insurrection.

CARLSON: Here's surveillance footage of Sicknick walking in the Capitol.

MURRAY (voice-over): A day after the Capitol attack, Sicknick died from a series of strokes. The medical examiner said he died of natural causes, but all that transpired on January 6th, played a role in his condition.

Sicknick's family slammed Fox in a statement saying: Every time the pain of that day seems to have ebbed a bit, organizations like Fox rip our wounds wide open again and we are frankly sick of it.

Another Carlson claim that the QAnon shaman walked through the Capitol without pushback from police. But in court where Jacob Chansley pleaded guilty, prosecutors say officers repeatedly tried to get him and others to leave. But officers felt outnumbered on January 6th and weary of confronting them. This as the Justice Department still works to hold rioters to account for the attack that day.

MERRICK GARLAND, U.S. ATTORNEY GENERAL: We have charged more than a thousand people with their crimes on that day and more than 500 have already been convicted. I think it's very clear what happened on January 6th.

MURRAY (voice-over): Former president and current presidential candidate Donald Trump proclaimed: Let the January 6th prisoners go and offered his thanks to Carlson and McCarthy.

MURRAY: Now, as the House Speaker Kevin McCarthy, he says he has no regrets about releasing this footage to Tucker Carlson, claiming it was in the interest of transparency.

Sara Murray, CNN, on Capitol Hill.

(END VIDEOTAPE)

NOBILO: House Speaker Kevin McCarthy is also downplaying the violence of January 6. Here's what he said Tuesday, defending his decision to give the footage to Fox News.

(BEGIN VIDEO CLIP)

REP. KEVIN MCCARTHY (R-CA) U.S. HOUSE SPEAKER: I continue to hold that my job here, just as it was before, is to make sure all the transparency comes out. And that is exactly what I'm doing. And just like all who cover news, people are able to interpret the way they want. But I think the fairest way to do it, instead of trying to clip it into something else, allow all the transparency so everyone can see the, so January 6th never happens again.

(END VIDEO CLIP)

FOSTER: In comments on CNN's K-file from the days after January 6, McCarthy described the violence in starkly different terms then Tucker Carlson.

(BEGIN VIDEO CLIP)

MCCARTHY: They skilled walls. They brought ropes. A couple of protesters died because they scale. And when you have the inaugural there was scaffolding. They were scaling the scaffolding. They -- they overtook the place.

One officer got killed. (INAUDIBLE) they got broken arms. You didn't understand what was transpiring at that moment and that time. People hanging. People brought ropes. When I got back into my building, I found the straps they had. I don't know if they're going to try to kidnap somebody or whatever. But they -- they were well planned for it.

(END VIDEO CLIP)

FOSTER: McCarthy says he'll release the January 6th footage to all media organizations, although he didn't say when.

NOBILO: The acting chief of the U.S. Federal Aviation Administration will appear before a Senate committee hearing in the coming hours. Senators want to know about the agency's efforts to reform how it certifies new airplanes.

FOSTER: The changes come in the wake of two Boeing 737 Max crashes in 2018 and 2019 that killed more than 300 people. The fatal crashes raise safety questions about the FAA's airplane certification program.

Investors on Wall Street are hoping to regain some ground after dismal day, on Tuesday. You can see pretty positive at the moment, just up near a few percentage points or -- what would you call them -- point percentage points.

NOBILO: Yes, or a tenth of it.

FOSTER: The chairman of the U.S. Federal Reserve will be back on Capitol Hill today four the House Financial Services Committee. Jerome Powell says inflation is still too high, and a bigger than expected interest hike is coming. CNN's Matt Egan has the details.

(BEGIN VIDEOTAPE)

MATT EGAN, CNN REPORTER: Hey, Max and Bianca. So, Jerome Powell he's essentially saying that this war on inflation could drag on, perhaps into the summer. Here's why.

Despite the Fed's best efforts to cool things off, the economy got off to a very hot start this year, hiring boomed in January. Retail sales, they skyrocketed. And here's the big problem, inflation remains way too high. In fact, if you look at the Feds preferred inflation metric, it shows that while price gains have cooled off in the past nine months, they unexpectedly heated up in January. And inflation remains well above the 2 percent the Fed is targeting. Listen to what Powell had to say about what all of that means for interest rates.

JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: Although inflation has been moderating in recent months, the process of getting inflation back down to 2 percent has a long way to go and is likely to be bumpy.

[04:15:00]

As I mentioned, the latest economic data have come in stronger than expected, which suggests the ultimate level of interest rates is likely to be higher than previously anticipated.

EGAN: In other words, more tough medicine is probably on the way. Now remember the Fed is already raised interest rates eight straight meetings. It lowers the dosage of the inflation fighting medicine in the last two meeting. But after today's hearing, investors are pricing a growing chance that the Fed goes big again, with a 50-basis point hike later this month.

And that did not sit well at all with Wall Street. The markets were a little change before Powell start speaking, but by the end of the day, they closed down sharply lower. For Main Street, all of this means higher borrowing costs. Mortgages, mortgage rates, they are creeping closer to 7 percent. Again, credit card rates, they've never been higher. And at the end of the day, the big problem is that the more the Fed has to do to tame inflation, the greater the risk that they do too much. And they accidentally slow the economy right into a recession -- Max and Bianca.

(END VIDEOTAPE)

NOBILO: The CEO of Starbucks is set to testify about the coffee giants labor practices before U.S. lawmakers. Howard Schultz has agreed to speak in front of the U.S. Senate committee on March the 29. And he agreed to show up as lawmakers were considering whether to subpoena him instead.

FOSTER: At issues is the company's response to a growing wave of unionization at stores around the U.S. Schultz has repeatedly said he doesn't agree with the push for workers to unionize. Starbucks has been accused of using illegal methods to prevent unions for reforming. But more than 280 Starbucks have successfully unionist over the past year.

The head of the National Security Agency and U.S. cyber command say the Chinese owned video app TikTok presents a national security concern.

NOBILO: He told lawmakers that's due to the way it collects data on people who use the social media platform, and the fact that census information for its vast global audience. The warning coincides with the U.S. Senate Bill that would give the Biden ministration new authority to ban the app used by tens of millions of Americans.

FOSTER: The fear is that China could force TikTok's parent company to hand over Americans user data. TikTok's CEO insists the company has never received such a request from the Chinese government, nor would it comply with one. The bipartisan Restrict Act does not target TikTok specifically, but aims to rein in foreign technologies that could pose national security risks.

(BEGIN VIDEO CLIP)

SEN. MARK WARNER (D-VA): So, instead of playing whack-a-mole on Huawei one day, CT the next, Kaspersky, TikTok, we need a more comprehensive approach to evaluating and mitigating these threats posed by these foreign technologies from these adversarial nations. SEN. JOHN THUNE (R-SD): It's safe to assume that if the CCP is willing

to lie about its spy balloon and cover up the origins of the worse pandemic in 100 years, they'll lie about using TikTok to spy on American citizens.

(END VIDEO CLIP)

FOSTER: I think actually what TikTok said that was quite significant is the concern is being that China, under Chinese law, Chinese companies have to handover data to the government if they're asked for it. He's saying even if they asked for it, we would not handed over. Which in theory, would alleviate the concern.

NOBILO: But it's interesting because it's not the only concern. The FBI director, Chris Wray, was saying he doesn't like the fact that a country with values that aren't shared with the U.S. can have the influence to manipulate algorithms potentially and push content that they have an agenda for to an American audience.

FOSTER: Yes.

NOBILO: So, there seems to be multiple security concerns.

FOSTER: Indeed.

NOBILO: A day after Chinese leaders lash out at the U.S., we're getting a very diplomatic response from the Biden administration.

FOSTER: We are. Plus, Ukraine says its forces are repelling nonstop Russian attacks on Bakhmut. The latest on the fierce battle there in a live report just ahead.

NOBILO: And millions on the West Coast the U.S. are looking at more winter storms and wet weather.

DEREK VAN DAM, CNN METEOROLOGIST: California is once again under the crosshairs of yet another atmospheric river, this time it's going to be a milder system that will move in that will have flooding repercussions across the state. I'll explain the threats coming up after the break.

[04:20:00]

(COMMERCIAL BREAK)

FOSTER: Officials in California are warning residents to prepare for a new powerful storm expected to hit in the coming days, just as the state digs out from all that heavy snowfall.

NOBILO: A short break in the wet weather is expected on Wednesday and early Thursday, before a warmer more powerful storms then arrives. Winter storm watches have been issued at the high elevations beginning Thursday and lasting into Sunday.

FOSTER: Some 60 million people in lower elevations are preemptively under flood alerts. Meteorologist Derek Van Dam has the forecast. VAN DAM: Here we go again, California under the crosshairs of yet

another atmospheric river event. These, quote unquote, rivers in the sky have the ability to produce up to 25 times as much water that actually flows through the Mississippi River.

Now it's imperative as a meteorologist that we investigate where this plume of moisture originates. And notice how it's coming from basically Hawaii. This is known as the Pineapple Express. And this is important, because it's going to transport a lot of mild air with this atmospheric river. So, as it fluctuates from north to south across the state of California, we do anticipate this to be a mainly rain event. Of course, snow in the higher elevations.

But remember, we've had already record setting snowfall for the state of California. So, you add liquid precipitation on top of that, and a flash flood threat increases dramatically. This is for Thursday, according to the Weather Prediction Center, Sacramento Valley all the way to San Francisco, further south, we have a moderate risk of flash flooding. And you can see why. Look at the barrage of storms that will batter the state through the weekend, and once again into early parts of next week, over spreading high elevations snowfall. But more importantly, rain on top of the snow that's already fallen.

National Weather Service issuing flood watches for this entire area. That's basically central and northern California.

[04:25:00]

So, how much rain are we expecting? Well, the potential exists for 3 to 6 inches across the coast and inland as well. But remember, on top of that, the higher elevation snowfall, that's 8,000 feet or higher, we could be measuring this in feet, once again adding to those record- breaking snowfall totals that have already formed across the state.

The moisture spreads inland. There is a look at the winter weather advisories. By the way, a nonaffiliated winter storm taking place over the next 36 hours across the upper Midwest, heads up Omaha, to Minneapolis, St. Paul, plenty of snowfall for you, could lead to the fifth snowiest winter season in Minneapolis history. And into the south, where it stays rain. We expect excessive rainfall that could lead to some localized flash flooding across the deep south. Back to you.

NOBILO: In the hours ahead, officials in Memphis are expected to release about 20 more hours of video related to the deadly police beating of Tyre Nichols back in January.

FOSTER: This comes after the city wrapped up its internal investigation, and we learn a seven police officer has been fired. Five other former police officers have been indicted on criminal charges. A spokesperson for the Shelby County district attorney says no one else is expected to face criminal charges at this time.

The Mississippi State Senate has passed a bill that supporters claim will help fight crime in the capital Jackson. The plan would let the majority white legislature select judges and prosecutors rather than the residents of a city that is more than 80 percent of a black population.

NOBILO: Legal experts in Jackson say there are better ways to fight crime, and Democrats opposing the bill call it an attempt to overrule the elected leadership in that city.

(BEGIN VIDEO CLIP)

ROBERT L. JOHNSON, MISSISSIPPI STATE HOUSE DEMOCRATIC LEADER: The reason it's wrong is because the Constitution of the state of Mississippi, Article Six Section 1:53 expressly says that judges shall be appointed. And furthermore, we have a provisional way if you want to have more judges to handle this backlog. We do it every year. We have people come in and request additional judges. This county, this district has requested additional judges to be elected. And they've been turned down and denied at every turn. And so, this is just a racist, unconstitutional power grab.

(END VIDEO CLIP)

FOSTER: The bill now moves back to the State House. Its sponsor says Mississippi's governor is in lockstep to make the capital city safer.

NOBILO: Embattled railroad company Norfolk Southern will be the focus of at least government investigations in the aftermath of two trained derailments in the U.S. state of Ohio.

FOSTER: The Federal Railroad Administration is conducting a 60-day safety review of Norfolk Southern. And the National Transportation Safety Board is also opening an investigation into the company's safety culture. That probe will encompass multiple incidents and three deaths since December 2021. Norfolk Southern's CEO is scheduled to testify at a U.S. Senate hearing on Thursday.

In Egypt, at least two people were killed and 16 injured when a passenger train derailed near Cairo. Authorities say it crashed into a platform after failing to respond to a signal.

NOBILO: Egypt's transport minister has ordered a committee to be formed to find the cause of the derailment and to identify those responsible and limit the damage.

FOSTER: Now ahead, the White House tries to lower the temperature with China after it accused the U.S. of trying to stifle Chinese development.

NOBILO: And later, Ukrainian President Volodymyr Zelenskyy is defending his decision to keep troops in Bakhmut during an exclusive interview with CNN. We'll here part of that, coming up.

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