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Nikki Haley at CNN Town Hall in Iowa on Being the Republican Presidential Nominee; No Survivors Over Cessna Plane Crashes in Virginia; Train Crash in India, 275 Killed; Russia Claims to Have Foiled a Major Attack by Ukraine; Tensions Up Between China and U.S. at Taiwan Strait; Tensions Between China and U.S. Spike; Uncertainty of U.S. Economy Post Debt Ceiling Crisis; Suspect in the Disappearance of Natalee Holloway Extradited to the U.S.; Prince Harry to Testify in London Against British Tabloid; Anti-Drag Show Law Unconstitutional; Hollywood Directors on Strike Reach Deal; Miami Heat Wins Over Denver Nuggets in Game Two. Aired 3-4a ET

Aired June 05, 2023 - 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)

LAILA HARRAK, CNN ANCHOR: Hello and welcome to our viewers joining us from the United States and all around the world, I'm Leila Harrak. Nikki Haley takes center stage at CNN's town hall to explain why she would be the best Republican nominee for president.

Escalating U.S. and Chinese tensions. New video shows just how close a Chinese military ship came to a U.S. destroyer.

And a British court could witness something not seen in more than 100 years. A senior royal giving evidence. We'll have details of the case involving Prince Harry and a live report from London.

We begin this hour with the battle to win over Republican voters in the race for the White House. Former South Carolina Governor Nikki Haley is trying to set herself apart from the Republican frontrunners. She took part in a CNN town hall Sunday night in Iowa to try and convince voters why they should pick her over former President Donald Trump, Florida Governor Ron DeSantis, and others.

For the first time since she's been on the campaign trail, Haley said she is against gun restrictions known as red flag laws. Take a listen.

(BEGIN VIDEO CLIP)

NIKKI HALEY, U.S. REPUBLICAN PRESIDENIAL CANDIDATE: I don't trust government to deal with red flag laws. I don't trust that they won't take them away from people who rightfully deserve to have them because you've got someone else judging whether someone should have a gun or not. It is a constitutional right that people can protect and defend themselves.

(END VIDEO CLIP) HARRAK: Haley also answered questions about her stance on Social Security entitlements and abortion policy. CNN's Jeff Zeleny has more.

JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: Former South Carolina Governor Nikki Haley making a generational appeal to Republican voters in Iowa on Sunday night at a CNN town hall, telling voters she's in it to win it, making clear that she's trying to elevate her candidacy in the growing field of Republican candidates.

She did so by taking direct aim at former President Donald Trump and Florida Governor Ron DeSantis, particularly on Social Security and Medicare.

(BEGIN VIDEO CLIP)

HALEY: I know that Trump and DeSantis have both said we're not going to deal with entitlement reform. Don't lie to them and say, oh, we don't have to deal with entitlement reform. Yes, we do. Yes, we do. It's the reality. I'm always going to tell the truth. Is it going to hurt? Yes.

(END VIDEO CLIP)

ZELENY: She sought to walk a careful line on abortion policy. She said she's unapologetically pro-life, in her words, but declined to say whether she would sign a federal abortion ban saying it simply would not happen in this deeply divided Congress. That could be one of her challenges as she goes forward to try and win over Republican primary voters. But she made the case that it's time for consensus.

(BEGIN VIDEO CLIP)

HALEY: I don't judge anyone for being pro-choice any more than I want them to judge me for being pro-life. So, what can we do with consensus? That's exactly what it is. We come through with consensus and say, what can we all agree on? I think we can all agree on banning late-term abortions. I think we can all agree on encouraging adoptions and making sure those foster kids feel more love, not less.

(END VIDEO CLIP)

ZELENY: After going through issue after issue from trade to China to Ukraine and domestic policies as well, one voter said that she is a breath of fresh air. When asked directly if she faced sexism as a woman running for president, she said she did not look at it that way. She said there's never been a line for the women's room for any job that she has applied for. But then she said, it's time for a woman to break the glass ceiling.

(BEGIN VIDEO CLIP)

HALEY: I'm a big fan of women. We balance, we prioritize, we know how to get things done. I mean, honestly, we've let guys do it for a while. It might be time for a woman to get it done, so.

(END VIDEO CLIP) ZELENY: And Haley is gaining two more rivals this week when former New Jersey Governor Chris Christie and former Vice President Mike Pence also throw their hat into the ring. The field is getting incredibly crowded. There's no doubt about that. The first Republican presidential debate in August. Jeff Zeleny, CNN, Des Moines.

HARRAK: Joining me now from Los Angeles is Ron Brownstein. He's a CNN senior political analyst and a senior editor for "The Atlantic." Ron, great to have you with us. Let's start with the GOP. What's your main takeaway from the GOP in Iowa?

[03:04:58]

Did any of the candidates make a convincing case you think of why they should lead the post Trump GOP?

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Yeah, you know, they're obviously facing a unique situation. I mean, we have not had any modern era, a former president, you know, trying to come back. And he has a big piece of the party. Ultimately, they're going to have to make a strong case to convince Republican voters to move past him. They're not there yet. I mean, that's the short answer.

They're beginning to circle around themes. Ron DeSantis saying, you know, you need two terms to finish this. We have a culture of losing. I'm not sure and Nikki Haley is saying we need a new generation of leaders. All of this seems to me still a little oblique and indirect. Seventy-five percent or so of Republican voters were satisfied with the Donald Trump presidency. Over 70 percent of them think that he actually won in 2020 despite all the evidence of the contrary. You're going to need to give them a good reason to move past him. No one is quite there yet.

HARRAK: Now it's shaping up to be quite a competitive Republican race for president, with Vice President Mike Pence and Governor Chris Christie now also entering the race. Could we see a likely repeat of 2016 when Mr. Trump managed to outlast everyone? Or do you think that the Republicans now will coalesce around someone else more quickly?

BROWNSTEIN: Well, the dynamic is similar to 2016, but not identical. Ron DeSantis is in a stronger position as a Trump alternative, I think, than any single individual alternative was in 2016, whether it was Jeb Bush or Ted Cruz or Marco Rubio or John Kasich. I think DeSantis has the capacity to consolidate more of the Republicans hesitant about Trump than any of those did, but he is not kind of an infinite capacity.

And there is, in fact, a kind of overlap of the dynamic, a repeat of the dynamic of 2016 in this sense. In 2016, Donald Trump won about half of the Republicans without a college degree. He only won about a third of the Republicans with a degree. But the rest of those white- collar Republicans never consolidated around a single alternative to him. That's the risk, I think, for Republicans.

Again, many of these candidates getting into the race, Nikki Haley, Chris Christie, Tim Scott, even probably DeSantis, ultimately, they appeal more to the white-collar side of the party than to the blue- collar side of the party that is Trump's strength. And so, there is the risk, but there's too little competition for Trump in effect in his pool and too much competition for the pool of voters who are the most skeptical of him.

HARRAK: Now, Ron, we just closed off a roller coaster of a week. Of course, I'm talking about that battle over the debt ceiling, which is now in the rearview mirror. What has it revealed to you about American politics and especially President Biden's position?

BROWNSTEIN: Yeah, well, first, I mean, it is extraordinary that we went as far as we did toward the brink of a domestic and global financial catastrophe, perhaps over such a modest set of policy goals. I mean, the ends and the means were so out of whack here that it really gives you the feeling that the main reason for this fight among Republicans was to show their voters that they were having this fight.

The resolution that this shows you, Biden's approach to the presidency, I think, very concisely in miniature. You know, he has at times raised very sharp objections to Republicans, to MAGA Republicans, but by and large, his instinct is to make the system work rather than trying to call out Republicans as a threat to it.

And here in the end, he abandoned his position, which had really been the position of Obama as well after 2011, of not negotiating over the debt ceiling, not seeming to want to reward hostage taking to in fact negotiate a surprisingly good deal from the point of view of Democrats. Republicans didn't get a heck of a lot of what they wanted, but they got something of what they wanted.

And in that sense, he did reward the hostage-taking. And so, this is, you know, this is kind of the tightrope of the Biden presidency, trying to call out the breaking of norms, the threat to small D (ph) democracy represented by the Trump faction within the GOP, but also trying to show that he can work with at least some of the Republicans and make the system work.

He has certainly been able to reach more bipartisan deals than many people, myself included, expected. But he is presiding over an era in which you are seeing these kinds of mounting threats to democracy. And you have on the Democratic side, those who wish he would be more aggressive at calling it out and less focused on trying to grease the system and keep it functioning.

HARRAK: Ron Brownstein, thank you so much.

BROWNSTEIN: Thanks for having me.

[03:09:59]

HARRAK: And CNN will host a town hall Wednesday with former U.S. Vice President Mike Pence live from Grand View University in Des Moines, Iowa. He'll take questions from CNN anchor and chief political correspondent Donna Bash as he prepares for his own expected presidential bid. Tune in Wednesday, June 7th. at 8:00 p.m. in Des Moines. That's 9:00 a.m. Thursday in Hong Kong, right here on CNN. Police say they found no survivors from a small plane that crashed in

southwest Virginia on Sunday. The NTSB will begin investigating the site later today. The plane ventured near the U.S. Capitol before going down, causing enough concern that fighter jets were sent to intercept it, causing a loud sonic boom. CNN's Pete Muntean has more details.

PETE MUNTEAN, CNN CORRESPONDENT: We have heard from folks all over the Eastern Seaboard who heard this, which is apparently from the F- 16s that were sent to scramble this Cessna Citation private jet. According to a source familiar with this incident and NORAD, they both tell us that this plane was unresponsive, four on board. The pilot not responsive as this flight was going from Elizabethton, north -- sorry -- in Tennessee, and then to MacArthur Airport on Long Island.

But the plane then turned and overshot its original destination by about 300 miles. That is when NORAD scrambled F-16s in pursuit of this plane. And NORAD tells us that these airplanes, these fighter jets in pursuit were clear to go supersonic briefly through the speed of sound, the sound barrier, which ultimately leads to a sonic boom. And that is what doorbell cameras far and wide captured. Listen.

(VIDEO PLAYING)

MUNTEAN: -- dog scared there on the deck of the homes there in Northern Virginia. This apparently was because of the flight crew being completely unresponsive. And that track (ph), after the plane turned away from Long Island, went right over D.C., right over the District of Columbia. And that is an issue because there is layer of layer of restricted airspace there.

Planes that are unresponsive typically are not allowed through. They must be talking to air traffic control and squawking a discrete transponder code. If they do not have those things, that is what raises alarm bells at the FAA command center in Warrenton, Virginia. That is why these fighter jets were sent in pursuit.

NORAD also says that these fighter jets came up to this plane. The Cessna Citation Jet seats between about seven and 11 people and fired off flares to try and to get the attention of the crew. But the pilot was apparently unconscious at the controls and the plane crashed into a rural area not too far from Stanton, Virginia near Charlottesville. And that is what led to ultimately this crash.

HARRAK: After one of India's deadliest train crashes, authorities are working to reopen critical rail lines and to ensure such an accident never happens again. Crews are toiling in extreme heat to clear and repair the tracks. They hope to have normal service restored by Wednesday.

At least 275 people were killed and more than a thousand injured. Authorities blaming the train's high speed for the number of casualties. We're also hearing from -- more stories, rather, from survivors.

(BEGIN VIDEO CLIP) UNKNOWN (through translation): People who were alive were shouting for help, praying to God. Rescue teams were doing their best to save people. A lot of people were crying.

(END VIDEO CLIP)

HARRAK: While some are still trying to locate loved ones, unsure if they have been killed or injured or are simply unable to make contact.

(BEGIN VIDEO CLIP)

UNKNOWN (through translation): They are saying you will get to know at the hospital. I've been to all the hospitals and have found out nothing. Now, I'm going to Bhubaneswar to find out. I just need my husband. I don't want anything else.

(END VIDEO CLIP)

HARRAK: Well, CNN's senior international correspondent Ivan Watson is there in Balasore. He visited a hospital treating the injured and listened to the stories of survival.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: This regional hospital received hundreds of survivors of Friday night's terrible train derailment and we've been speaking with everybody in this particular room. Some people lost loved ones who were on board the train when the passenger car started flipping and rolling. This man was traveling alone. He's a 52-year-old farmer who suffered some spinal injuries. He is at least fortunate, though in pain, to be reunited with his family here while he starts to begin the difficult process of recovery.

And I spoke with a 15-year-old boy who was traveling with his mother and father and younger brother. Both brothers have serious head injuries.

[03:15:01]

(BEGIN VIDEO CLIP)

UNKNOWN (through translation): People who were alive were shouting for help, praying to God. Rescue teams were doing their best to save people. A lot of people were crying.

(END VIDEO CLIP)

WATSON: Outside the walls of this hospital, there are hundreds of volunteers trying to offer support to the victims. But we've also met people who are still desperately searching for missing relatives. Now, the government is offering compensation to families of the dead, as well as to people who were injured in the train crash.

The government is also calling for an investigation and says it will bring to justice anybody who's responsible for this deadly catastrophe. But these measures will never be enough for somebody who has lost a loved one. Ivan Watson, CNN, in Odisha (ph) State in Eastern India.

HARRAK: Coming up on "CNN Newsroom," Ukraine making some moves on the battlefield while keeping the bigger plans for its counteroffensive under wraps.

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[03:20:00]

HARRAK: Russia says it has thwarted a quote, "large-scale Ukrainian offensive in the southern Donetsk region." The Russian defense ministry released this video showing what it claims is a skirmish with Ukrainian forces. Moscow says that Ukraine tried and failed to push through a vulnerable frontline area with tanks and armored vehicles. Ukrainian officials however are refusing to comment and it's unclear that what Moscow was describing was an actual offensive, rather than a way to test Russia's defenses.

Meantime, violence spilling over farther into Russian territory. Poor Ukrainian Russian dissidents are stepping up attacks on the Belgorod region. But Chechen strongman Ramzan Kadyrov is offering to send his fighters in to deal with them.

Let's get you more on all of these developments. Clare Sebastian standing by in London. Clare, good to have you back with us. Both sides bracing for that much anticipated counteroffensive.

CLARE SEBASTIAN, CNN CORRESPONDENT: Yeah, absolutely, Laila. And I think, you know, it's at least getting closer, we can say, that much. These shaping and softening operations by the Ukrainian side continue. And I think not just in terms of their actions. Obviously, they haven't claimed these, but we do see an increase in activity across the border, increased shelling over the weekend in Belgorod.

But also, watch the information space here. Take a look at this video that the Ukrainian deputy defense minister put out on Sunday.

(VIDEO PLAYING)

SEBASTIAN: So, this urging silence around the counteroffensive. The caption of the video, plans love silence, the beginning, we assume of the counteroffensive, it means will not be announced. But of course, the effect of this is to keep us talking about it. It's the second video with this kind of similar level of production values in as many weeks. The commander of the armed forces put out another one just over a week ago, trailing the Western weapons that we assume will be used in this counteroffensive.

They're keeping the Russians guessing assuming that this sort of -- this ramp up in suspense will stop them from being able to regroup and retool, take some kind of operational pause. So, you see that as well. And I think on the Russian side as well, the ministry of defense has put out this video alongside those claims that they have thwarted what they're calling a large-scale Ukrainian offensive. They say they've destroyed a large amount of Ukrainian weapons and

troops. They even said that General Gerasimov, who is the commander of the Russian armed forces and the head of the operation in Ukraine was in a forward command and control position during this period. So, they are making a lot of this. As you said, though, Ukraine has not confirmed this. We have not been able to verify it ourselves. But they are clearly also putting out their own information here.

And the Ukrainian side is also warning about this. The Strategic Communications Directorate of the Ukrainian Armed Forces saying that Russia is intensifying its information operations, including around this counteroffensive and will be putting out more false information. But as for the counteroffensive itself, we are, it seems, moving closer. President Zelenskyy in the middle of May said we need more time. Now, he tells the "Wall Street Journal" over the weekend that they're basically ready even without, he says, the addition of those F-16 fighter jets that he has been pushing for.

HARRAK: Clare Sebastian, thank you so much for your continued coverage.

Sunday was Russian political dissident Alexei Navalny's 47th birthday. Well, human rights activists say at least 90 of his supporters were detained by police after they took to the streets to call for his release from prison. Video shows a woman who was detained in a Moscow square for walking with a balloon that reads Happy Birthday. There are no estimates of how many people participated nationwide and CNN cannot independently verify claims of the numbers detained or their status.

Mr. Navalny is serving a nine-year sentence in a maximum-security prison outside of Moscow. He's about to go on trial again on extremism charges, which could result in a 35-year prison sentence.

NATO Secretary-General Jens Stoltenberg says Sweden has fulfilled its obligations for admission to the alliance. Stoltenberg was in Istanbul on Sunday meeting with recently re-elected Turkish President Recep Tayyip Erdogan. Turkey has blocked Sweden's accession to NATO mainly because it accuses Stockholm of housing, quote, "terrorist organizations."

Swedish, Turkish and Finnish officials will meet next week to discuss Sweden's membership bid. Meanwhile, hundreds of demonstrators in Stockholm protested against recently passed anti-terrorism legislation. The government hopes the new law will help overcome Turkey's objections to Sweden joining the transatlantic alliance.

[03:25:07]

Up next, U.S.-China tensions spike after a near collision at sea in the Taiwan Strait. A live report on the latest just ahead.

And then with the debt ceiling crisis behind us, what's next for the U.S. economy? I'll speak with a global business expert about why that is far from certain.

(COMMERCIAL BREAK) HARRAK: Welcome back to our viewers in the United States, Canada, and all around the world. I'm Laila Harrak and you're watching "CNN Newsroom." A close naval encounter in the Taiwan Strait is ratcheting up tensions and rhetoric between the U.S. and China. That moment, coming over the weekend, when the U.S. said a Chinese military ship sailed in front of a Navy destroyer causing the U.S. vessel to slow down to avoid a collision.

Let's get you more on this. CNN's Kristie Lu Stout is following developments and (inaudible) from Hong Kong. Talk about too close for comfort, Kristie. So, while the U.S. and China locking horns at a security conference in Singapore, there was that near collision between those two warships. What's being done to diffuse tensions? What happened?

KRISTIE LU STOUT, CNN CORRESPONDENT: Yeah, Laila, U.S. tension front and center this weekend in two places, Asia's largest security forum in Singapore and also in the Taiwan Strait. Now on Saturday, warships from both China and the U.S. were involved in a near collision. And we now have fresh video of the incident that was released earlier today.

[03:29:59]

Let's bring it up for you. And this is what's happening here. So, the U.S. and Canada, they were staging what they called a routine transit through the Taiwan Strait when that Chinese ship cut right in front of the American vessel. The U.S. military says that the Chinese vessel was very close. It came within 150 yards or 137 meters of the U.S. Destroyer in a, quote, "unsafe manner." And that forced the U.S. ship to slow down to avoid a collision.

And separately, just now, we've been monitoring the Ministry of Foreign Affairs briefing. We just heard from a spokesperson reacting to this incident that happened over the weekend saying, quote, "The measures that were taken were completely reasonable, legal, professional and safe," unquote. We also heard just hours after this incident from China's defense chief who accused the U.S. of creating chaos in the region.

He was speaking in Singapore at the security forum and said this, quote, "They are not here for innocent passage, making reference to the U.S., they are here for provocation," unquote. Li Shangfu, the U.S. -- sorry -- the Chinese defense chief, he also said that the U.S. and China should seek common ground and common interest.

But, keep in mind that China earlier rejected an offer from the Pentagon chief, Lloyd Austin, to meet in person formally at the summit citing sanctions. Well, Austin, he expressed deep concern about the lack of high-level military communication and then he gave his speech on Saturday at the Singapore summit. He said this, let's bring it up for you, quote, "For responsible leaders the right time to talk is any time. The right time to talk is every time. The right time to talk is now."

The U.S.-China relationship is at a point of very deep friction. The two are loggerheads over a whole spade of issues from trade, tech, Taiwan, territorial disputes in the South China Sea. Some engagement has been happening. In fact, a U.S. official told CNN on Friday that the director of the CIA secretly traveled to China last month to help reset relations. Laila?

HARRAK: Some engagements and there is a tentatively, a glimmer of hope there because there is maybe a high-level meeting scheduled to take place potentially?

LU STOUT: Potentially. According to the White House National Security Advisor Jake Sullivan, he said that U.S. President Joe Biden and the Chinese leader, Xi Jinping, will meet, quote, "at some point." He made these comments at an interview with CNN's Fareed Zakaria on an episode of GPS that aired on Sunday. Take a listen.

(BEGIN VIDEO CLIP)

JAKE SULLIVAN, WHITE HOUSE NATIONAL SECURITY ADVISOR: We will, I hope, soon see American officials engaging at senior levels with their Chinese counterparts over the coming months to continue that work. And then at some point we will see President Biden, President Xi comes back together again.

(END VIDEO CLIP)

LU STOUT: Now, there are efforts underway for more engagement between these two superpowers. It was just last month in May when Sullivan met with China's top diplomat, Wang Yi, in Vienna for talks that were described as candid and constructive. Also, last month, even though it was only revealed on Friday, last week, yet the CIA director going to China for visits and for meetings.

And just last week, the U.S. commerce secretary, as well as the U.S. trade representative, meeting with the Chinese commerce minister. But an open-ended question as to when Biden and Xi are going to meet next. Back to you.

HARRAK: Kristie Lu Stout, as always, thank you.

LU STOUT: Thank you.

HARRAK: With the U.S. debt ceiling crisis now a memory, economists and investors are trying to figure out where the U.S. economy goes from here.

(VIDEO PLAYING)

HARRAK: The Dow posted its biggest single day gain of the year, Friday, up more than 2 percent. Investors cheer the debt ceiling deal and a favorable jobs report, but more moderate thinking appears to be taking around with the U.S. stock futures for Monday, barely moving. It's not clear if inflation is tamed quite yet, and with no two key inflation indicators due out in mid-June, just as the Fed decides on its next interest rate move. Money managers may be poised to take a cautious approach.

Joining me now from Los Angeles is Ryan Patel. He is a senior fellow at the Drucker School of Management of Claremont Graduate University. So good to have you with us, Ryan. The debt ceiling fight seems to have been resolved. Does this now mean that the government gets a clean slate? Are things stable now? How have markets reacted?

RYAN PATEL, DRUCKER SCHOOL OF MANAGEMENT, CLAREMONT GRADUATE UNIVERSITY: Well, it's never that easy. I think the markets have reacted accordingly, that they felt that this was going to occur. But it has been a whirl, of course, to a year and we're halfway throughout the year. And I believe that we're still going to see the rollercoaster down the road in the next six months.

So, I think that this is one step that has gone great, but then guess what, now we're going to be talking about inflation. We're going to be talking about the Fed meeting which is coming up in a couple of weeks in June and how is that going to play out.

[03:35:00]

So, yes, the markets haven't really came back to saying hey, everything is great because there's some uncertainty still ahead. But we did pass one test, but we're not out of the waters yet.

HARRAK: Not out of the waters yet. Let's talk inflation. You mentioned it there. What is the situation we are facing right now? What does, you know, all of this mean for attempts that are being made to defeat inflation.

PATEL: Well, let's just be very honest. I'm going to be very honest here. We're not out of the woods even close when it comes to knowing that we've dealt with inflation. Now, are we in the same situation we were six months ago, no? But we're not in the situation where we thought we were going to be where we're going to start decreasing the interest rate and have it under control.

Yes, we saw last month the unemployment rate here in the U.S. had dropped from like three points, you know, (inaudible) increased 3.4 or 3.7. We saw a slow and averaging rate build (ph), but we did see in the last Wednesday report from the labor department certain numbers that, you know, the increase of job openings.

So, that obviously puts a wrench into the Fed, which then goes 10 times in a row. We've seen the increase in the rate. So, in June when it comes up, I believe the Feds should freeze or pause the interest rate to get more data to see what they're going to do in July, and that would be the best-case scenario.

HARRAK: And what if the Fed doesn't do that during its next meeting?

PATEL: Well, that means it's going to increase it and it's going to be the 11th time in the row. It will cause, I think, some markets to, I want to say react, but we're going to see when is it going to be enough. And I think the Fed, if they're going to increase, it maybe it's by 25 basis points or 50. They have to really give the reason on what that aspect is.

And I think the Fed here really needs to decide what their long-term strategy is going to be since we haven't seen the numbers go the way they want to. So, obviously, that's why I think the pause would be better so they can kind of re-gather and have a better plan for the second half of the year. But, if they believe the numbers are going in the wrong direction, then they're going to be aggressive which they continue to say that they're going to be.

HARRAK: And let's talk more about in terms of where numbers are going when it comes to jobs. There has been some encouraging news on the jobs front. What's your read?

PATEL: Yeah. I mean, it's encouraging but not encouraging enough because there hasn't been any decision before, either or. Anything about the business community as a whole, we did see cuts in the first half of the year, but businesses have still have been not aggressive in their growth. They're kind of sitting on the sidelines. And you've kind of see that in IPOs. Not to make that correlation, but we've seen less IPOs going into because there's this un-shakiness of when we're going to go.

And until you have that credibility, that stability, and that certainty, that stability is going to come back for businesses to kind of come back and be more aggressive. Otherwise, we're going to see flat growth for the rest of the year, which the U.S. is, and then GDP is seeing that. And what the Fed and what consumers want and businesses want is to be more aggressive and back to that growth number. But until we see more better data that is more consistent, that will give that confidence that others are looking for.

HARRAK: What debate needs to be had right now and is this current situation actually sustainable? Do you think that lawmakers that it's high time to have that very serious discussion about public debt?

PATEL: Well, I think you have to start it now. You can't wait until the end. We saw that in the debt ceiling in the past week. We're talking about pushing it out in two years and that's what they did. They agreed to push out, you know, another two years to deal with the situation, but you can't wait 18 months from now to continue that conversation.

I think all sides need to come together starting right now, not waiting six months and start to put a plan together to ensure that all parties and we're putting the economy in a place that the citizens are doing well too. So, I would say it's not over, this is just beginning to have this conversation and having control of that debt ceiling and having control of the debt and making sure imports and exports are going to be something that puts the U.S. economy and a more stability future has to happen now.

HARRAK: Ryan Patel, thank you so much for your insights. Thank you.

PATEL: Thank you.

HARRAK: And still to come, the prime suspect in the disappearance of American teenager, Natalee Holloway, is set to be handed over to the United States. We'll have details on the charges he'll face. Plus, Britain's Prince Harry about to do something no senior royal has

done in over a century. We'll have a live report on Harry's lawsuit against a British tabloid publisher. Do stick around.

(COMMERCIAL BREAK)

[03:40:00]

HARRAK: The prime suspect in the disappearance of American teenager Natalee Holloway will be temporarily transferred to the United States custody this week. Peruvian officials tell CNN they will hand over Joran van der Sloot to Interpol on Thursday which in turn will deliver him to American authorities. Van der Sloot is set to stand trial in the U.S. on extortion and fraud charges for allegedly trying to extort Holloway's family after she disappeared. She was last seen alive with Van der Sloot and two other men 18 years ago leaving a nightclub in Aruba.

Prince Harry is expected in London's high court early this week as he and others sue a British tabloid. The trial resumes Monday in the lawsuit against the publisher of the "Daily Mirror." The suit accuses Mirror Group Newspapers of unlawful activities including phone hacking to obtain private information.

Well, Harry would be the first senior British royal to testify in court, and get this, 130 years. Let's bring in CNN's Nada Bashir for you live in London. Nada, Prince Harry taking on the tabloids, potentially exposing himself to questioning in open court. This is quite something.

NADA BASHIR, CNN REPORTER: Absolutely. This is certainly a significant case and over the next three days, the high court here in London will be hearing and considering the case against the Mirror Group Newspapers allegations that its newspapers published stories with private information solicited through unlawful means including crucially phone hacking between 1991 and 2011.

And there are more than 100 claimants in this case, among them is of course Prince Harry, the Duke of Sussex. Including other notable figures, actors, sports stars, other celebrities, all of whom claim that these newspapers published or they put in personal detailed information about their private lives (inaudible) supply their journalists through those illegal means.

Now, over the next few days we will be nearing the evidence here. The opening statements expected to be given today. Its unclear which day exactly Prince Harry will be due to give evidence in person, but all eyes will certainly be on the high court waiting for that. Prince Harry himself claims that the Mirror Group Newspapers published 140 stories which included private personal information (inaudible).

[03:45:06]

However, at this stage, the court is only considering 33 of those stories. Now, Mirror Group Newspapers have contested these allegations. They say their senior editor and leaders within the group were unaware of any wrongdoing throughout this period. And they also claim that some of these lawsuits have been brought forward too late.

Now, Prince Harry -- for Prince Harry, of course, it is a deeply important, deeply personal matter. He has been very vocal about wanting to reform media practices, reform the media's intrusion in people's personal lives. He's been vocal about that in his books (inaudible), in the Netflix documentary he released alongside his wife, Meghan Markle, the Duchess of Sussex.

This is a hugely important issue. He has accused so far (inaudible). He wants to see this through the courts. He wants to see reform. Of course, he has spoken very, very clear about the impact of media intrusion has had not only on his personal life and on that of his wife, Meghan Markle, and his family, but also (inaudible) of course on his late mother, Princess Diana.

So, this is a deeply personal issue for him. (Inaudible). Remains to be seen when he will appear in court. But as he mentioned that, he will of course, face questioning. It is the first time in over 100 years that a member of the royal family has stood to give evidence in court and face this kind of questioning. Well, we have seen those personal details (inaudible) revealed in his book and the Netflix documentary.

This is of course a different ball game. This is a very different environment and this is not under his control. And we may see some very personal details, questions being revealed in court that the Royal family may not wish to share. Laila?

HARRAK: Nada Bashir reporting from right outside the high court and we've got also some double decker's passing by behind you. Thank you so much, Nada. Thank you for your reporting.

Now, a federal judge in the U.S. state of Tennessee has ruled that a law limiting public drag shows is unconstitutional. The judge appointed by former President Donald Trump says the law restricts freedom of speech where it has given many people reason to celebrate. But conservative lawmakers aren't done fighting back. CNN's Isabel Rosales reports.

ISABEL ROSALES, CNN CORRESPONDENT: Federal Judge Thomas Parker has now barred Shelby County -- Memphis is in Shelby County, from enforcing this law saying in part of a 70-page ruling, quote, "As a matter of text alone, the Adult Entertainment Act is a content and viewpoint-based restriction on speech. The AEA was passed for the impermissible purpose of chilling constitutionally protected speech."

We did receive a statement from the Republican Tennessee Attorney General, Jonathan Skrmetti, and here's what he said, in part, "The scope of this law has been misrepresented in public by those more interested in pressing a narrative than in reading the statutory text. The Adult Entertainment Act remains in effect outside of Shelby County. This narrowly tailored law protects minors from exposure to sexually explicit performances."

Skrmetti also saying that his office is reviewing that order and that they do plan to appeal at an appropriate time. CNN spoke with one of the co-hosts of the HBO Original Series, "We're Here," a Tennessee native, Eureka O'Hara. Here's what they said.

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EUREKA O'HARA, DRAG PERFORMER: And drag is such an expression of who we, of freedom of who we are. So, to be, you know, co-put into a box with something so sexually explicit, it really does kind of demean the message that I was doing especially for my work specifically with "We're Here." So, it was saddening at the same time.

(END VIDEO CLIP)

ROSALES: And earlier this year, Tennessee Republicans hold a super majority in the state legislature, passed this measure later on. It was signed into law by the Republican governor, Bill Lee. And here's what the law sought to do. Specifically, to limit adult cabaret performances on public property in order to shield children from viewing them and threatened violators with a misdemeanor, and then repeat offenders with a felony.

The ban also specifically included, quote, "male or female impersonators who performed in a way that was harmful to minors." Originally, this law was set to go into effect April 1st. And at least in the case of Shelby County, that is not the case for now. Isabel Rosales, CNN, Atlanta.

HARRAK: Still ahead, Hollywood directors reached a tentative deal with the big studios, but no such luck yet for the writers. We'll have the details for you.

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HARRAK: Hollywood directors have reached a tentative deal with movie and television studios on wages, work hours, the use of A.I. and more while the writers' strike continues. CNN's Chloe Melas has the details.

CHLOE MELAS, CNN REPORTER: The DGA is calling this a, quote, "truly historic deal," but what's in that deal? Well, I'm going to break that down for you. There are 19,000 Director's Guild members and they wanted more money, they wanted artificial intelligence and streaming concerns to be addressed, and it looks like they got that.

So, there's going to be a 5 percent wage increase in the first year. Assistant directors are going to see their workdays cut by an hour. We have been hearing that many members and multiple guilds feel not only overworked but underpaid.

Something that is interesting is that in the contract it also bans live ammunition on the set. This is coming a little over a year after what happened on the set of "Rust" where cinematographer Halyna Hutchins being killed by a live round of ammunition that somehow got its way onto set and in that prop gun that actor Alec Baldwin was holding. When it comes to artificial intelligence, the agreement would also put into writing a clause about the use of A.I. stating, quote, "A.I. is not a person and that generative A.I. cannot replace the duties performed by members."

And for the first time, global streaming video-on-demand residuals would be paid on the number of international subscribers. So, this results in a 76 percent increase in foreign residuals for the biggest services.

[03:54:57]

So, this is tentative. This is going to be submitted to the guild's national board in a meeting on Tuesday. But, again, we still have the writers on strike. We still have SAG that's currently figuring out their own deal. And this is important because the content that we all watch and we consume, this means we need directors, we need writers, we need actors to do that.

So, the writers guild has come out and said that they support their friends in the DGA, but that they are still holding out for their own deal and for their own agreement on wages and residuals and concerns with A.I., so, we will see. You know, I've had rioters tell me that they think the writer strike can go through the summer. Back to you.

HARRAK: In game two of the NBA finals, the Miami Heat withstood a 41- point onslaught from Denver's Nikola Jokic as they defeated the Nuggets, 111 to 108 on Sunday, and tied the series at one game each. Well, Miami got off to a hot start, but Denver came back with a 45 to 14 run in the second quarter to take control of the game. But Miami answered with a late run of its own to regain the lead in the fourth.

Denver's Jamal Murray had a chance to tie the game, but missed a three pointer in the final second. And with that, the Heat came away with the win. The series moves to Miami for game three which is scheduled for Wednesday.

Thousands of people gathered on Sunday in Paris to compete in a mass dictation competition. School desks took over the Champs-Elysees as contestants from the ages of 10 to 90 attempted to write down passages read by an announcer without making any mistakes. All readings arranged from French classics, to sports, to literature and even contemporary writing. CNN affiliate BFMTV says the event broke the world record for the largest dictation. Thank you so much for watching. I'll see you tomorrow.

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