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CNN International: Former President Trump Pleads Not Guilty to 37 Charges; Trump Claims Espionage Act Doesn't Apply to Him; Japanese Military: Cadet Arrested After Shooting; Blinken Speaks with Chinese Foreign Minister Ahead of China Visit; Fed Meets on Inflation Today and Will Announce Rate Hike Decision. Aired 4-4:30a ET

Aired June 14, 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 good morning. I made it just in time.

MAX FOSTER, CNN ANCHOR: You did.

NOBILO: Welcome, everybody in the United States and all around the world. I'm Bianca Nobilo.

FOSTER: I'm Max Foster live from London. Just ahead on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Today we witnessed the most evil and heinous abuse of power in the history of our country.

UNIDENTIFIED MALE: He said they were his own documents. That is not only absolutely false, it's like upside down world.

UNIDENTIFIED FEMALE: Him and his team have gone through this before. So, there is kind of a sense of normalcy in the chaos when it comes to Trump world.

UNIDENTIFIED MALE: Inflation continues to cool off which of course is a huge relief. It's nowhere near back to normal yet. It may need some more inflation fighting medicine from the Fed.

(END VIDEO CLIP)

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

FOSTER: It is Wednesday, June 14th, 9:00 a.m. here in London, 4:00 a.m. in Miami where for the first time in U.S. history a former U.S. president has been arrested and arraigned on federal charges.

NOBILO: Donald Trump pleaded not guilty to 37 counts in the classified documents case. Inside the Miami federal courthouse, he sat hunched over, arms crossed with a scowl on his face and did not speak during the hearing. This is likely the start of a long judicial process that could take years to play out.

FOSTER: After Leaving Ct., Trump went into campaign mode visiting a popular Cuban restaurant where supporters sang happy birthday to him since he's turns 77 today. And he said, some birthday. We've got a government that's out of control.

NOBILO: Because the judge imposed no travel restrictions, Trump then went to his Bedminster, New Jersey golf club to fundraise after his outrage. He called the latest legal action the most evil and heinous abuse of power in American history and insisted he had every right to possess those classified documents.

(BEGIN VIDEO CLIP)

TRUMP: In other words, whatever documents a president decides to take with him, he has the right to do so. It's an absolute right. This is the law. And that is something that people have now seen and it couldn't be more clear. They ought to drop this case immediately because they are destroying the country.

(END VIDEO CLIP)

FOSTER: Our reporters all over this. Kristen Holmes reports from that fundraiser in New Jersey. But first Evan Perez in Miami with what happened inside the court.

(BEGIN VIDEO CLIP)

EVAN PEREZ, CNN SENIOR U.S. JUSTICE CORRESPONDENT: A historic day here at the federal courthouse in Miami where Donald Trump became the first former president of the United States to face arraignment and face these federal charges that he is now charged with. He spent just under two hours at the federal courthouse behind me. He was finger printed. He was processed by the U.S. Marshals, and then sat in this courtroom looking a little bit dejected.

He had his arms folded, twiddling his thumbs. Mostly facing forward as the judge spoke to him about the case. His attorney Todd Blanche entered the not guilty plea on his behalf. Which is unusual in most cases defendants are required to stand up and address the judge and say for themselves that they are pleading not guilty.

His co-defendant Walt Nauta is going to have to come back because he didn't have a lawyer present who could operate here at the federal courthouse in Miami.

One of the interesting developments in the court hearing today was the judge ordering the former president to not discuss the charges with Walt Nauta, his co-defendant, or with any other witness, which is of course an interesting restriction. The former president is facing the fact that lot of the people who work for him at the Trump Organization, at Mar-a-Lago, were witnesses in this case.

And his attorneys raised some concerns about that. Of course, the former president is now running for office again. In the end, the Justice Department promised to produce a list of witnesses that the former president is not allowed to discuss the case with in the coming weeks as this case gets under way here in southern Florida.

Evan Perez, CNN, Miami.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

KRISTEN HOLMES, CNN U.S. NATIONAL CORRESPONDENT: Well, here at Bedminster, the supporters were cheering for him. And he gave a speech that we were expecting. He called this election interference.

[04:05:00]

He said this was all because Joe Biden didn't want to run against the former president in 2024. As we know, he is not even the Republican nominee. But I do want to play a sound bite from his speech. Because I think that it is very important, it gives you an idea of what he is focused on. Take a listen.

TRUMP: Charging a former president of the United States under the Espionage Act of 1917, wasn't meant for this. An act for a crime so heinous that only the death penalty would do and threatening me with 400 years in prison for possessing my own presidential papers, which just about every other president has done. Is one of the most outrageous and vicious legal theories ever put forward in an American court of law.

HOLMES: So clearly, he has a fixation with the Espionage Act. This is the most that I have ever heard him bring this up. He also talked about the Presidential Records Act which as we know he could have declassified documents in office, but he has said on tape that he had documents that he didn't declassify showing both that he knew the process and he hadn't followed the process while he was in office.

One other interesting thing to note here, is that we've talked a lot about Walt Nauta, that body man who is the co-defendant of the former president. We know he traveled back to New Jersey with the former president. We've also learned that his lawyer was on the plane as was Donald Trump's lawyer. So maybe an indication there of how exactly they will deal with this communication. Of course, the judge saying that they could not communicate to each other about the case.

We still have questions about who else will be on that witness list that Donald Trump cannot communicate with about the case. Of course we're going to see how that unfolds.

But Donald Trump defiant tonight, his team saying that they feel good, they feel better than the past. And they now have a playbook for dealing with these indictments. Something they believe they'll have to do again, likely in the future.

(END VIDEOTAPE)

NOBILO: A number of Trump allies in the House are planning attacks on the special counsel investigation, including subpoenas for Jack Smith and Attorney General Merrick Garland. Others want to defund the FBI and Justice Department. But there are some Republicans starting to break from the former president.

(BEGIN VIDEOTAPE)

SEN. LISA MURKOWSKI (R-AK): He had a chance to return them, present them back, but he just doubled down. We cannot take this lightly.

UNIDENTIFIED MALE: It's obvious what the president did was wrong.

UNIDENTIFIED MALE: I just don't see it as a sham indictment.

REP. TIM BURCHETT (R-TN): Very problematic is a reason I'm not -- not defending him. I would like to find out all the truth of it. Obviously, if that's the truth, I'd be very concerned.

(END VIDEOTAPE)

FOSTER: Meanwhile, Trump's presidential rivals are also responding to Tuesday's arraignment.

Former Vice President Mike Pence told the "Wall Street Journal," having read the indictment these are very serious allegations and I can't defend what is alleged. But the president is entitled to his day in court. He's entitled to bring a defense. I want to reserve judgment until he has the opportunity to respond.

And here's former Arkansas Governor Asa Hutchinson.

(BEGIN VIDEO CLIP)

ASA HUTCHINSON, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Anyone is a disservice -- provides a disservice to our justice system and our rule of law if they diminish the seriousness of these charges and the allegations. It does a disservice to our service men and women who are bound by the rules. One of them was convicted to three years in prison for mishandling classified information.

JAKE TAPPER, CNN ANCHOR: In Florida, I believe.

HUTCHINSON: And so, we need to be straightforward about this and not play political games.

(END VIDEO CLIP)

FOSTER: Well Trump says the charges against him are a misapplication of the Espionage Act. Our Kaitlan Collins spoke to former Assistant U.S. Attorney David Weinstein about that claim.

(BEGIN VIDEOTAPE)

DAVID WEINSTEIN, FORMER ASSISTANT U.S. ATTORNEY, SOUTHERN DISTRICT OF FLORIDA: It's part of a larger act, the Espionage Act, and it covers people who had at one time access to documents because they had clearance to have those documents. And then they took those documents from a place where they should have been under secure quarters and either held them or kept them somewhere else or shared them with other people. That's what it has alleged that he has done. It doesn't have to be a mail drop or spy versus spy meet each other somewhere and hand oversee yet documents. It's the improper use and handling of classified documents. And in this case documents that were alleged to contain defense and military secrets of our country.

KAITLAN COLLINS, CNN ANCHOR: When it comes to what's next and what a trial looks like here, how fast do you think that we could see a trial potentially?

WEINSTEIN: In this case it's not going to occur that quickly. In a regular case, they move fast here in the Southern District of Florida. Trial will be set in a couple months and would be perhaps continued a little bit. Case would be resolved in six to nine months. But hear you have security clearances that are needed for his counsel. You're going to have motion practice. You're going to have motions that undoubtedly are going to end up at the 11th circuit. And request for continuance to try and push this matter off past the November election. So, in a case that could normally be resolved by March or April, this one's going to drag out at least until the summer.

(END VIDEOTAPE)

[04:10:00]

NOBILO: This is just one of the many legal issues facing Trump. The former president could also be indicted in the Justice Department's January 6th investigation. Trump is still under investigation in several states including Georgia where he's accused of trying to overturn the 2020 election results. And we've now learned the sheriff of Fulton County, Georgia has sent teams to New York and Miami where Trump has already been indicted.

FOSTER: They went to observe safety and security procedures in case of a new indictment in Georgia. The Fulton County district attorney is expected to announce charging decisions in the coming weeks.

Now the former magazine columnist who successfully sued Donald Trump for defamation, has got permission to seek more damages. Last month E. Jean Carroll was awarded $5 million where the jury found that comments Trump made about her were declamatory and that he had sexually abused her.

NOBILO: Now a federal judge has agreed to allow Carroll to amend her original lawsuit to seek more damages following comments Trump made about her during a televised CNN Town Hall.

Japan's military says a cadet is in custody after opening fire on their unit during a training exercise, killing two and wounding another.

FOSTER: Our CNN's Paula Hancocks following the story from Seoul, South Korea. A lot of mystery about what happened here. But we've got an arrest. They're not looking for anyone else.

PAULA HANCOCKS, CNN CORRESPONDENT: That's right, Max. Yes, we understand from officials that the individuals is in custody. And they have yet to publicize a motive. We don't know whether they have a motive at this point. What they have said though is that the suspected shooter was a cadet who joined the Ground Self-Defense Force in April. And we understand from officials that at 9:00 a.m. on Wednesday, Japan time, there was a live fire drill in Gifu Prefecture in central Japan. And at this point, the cadet fired upon some of his colleagues.

Now we understand, as you say, two have lost their lives. A 25-year- old serviceman and a 52-year-old serviceman, another 25-year-old is injured at this point. So what they're trying to find out is exactly how this happened.

Now we've heard from the Chief of Staff of the SDF, Yasunori Morishita, and he said an investigation has been launched to make sure this never happens again.

He has also said, quote, this kind of incident should never happen in an organization that handles weapons.

Now gone crime is extremely rare in Japan as it is. Because the gun ownership laws are so stringent and there is such a strict vetting process to be able to get hold of a gun. Last year for example, there were just nine firearms incidents for the entire year including of course, that high profile assassination of the Prime Minister Shinzo Abe.

But what this is, is something different. It is within the military. We understand that police and military do have guns in Japan. They are those that are allowed to have them and this is why the chief of staff is so concerned. Saying this should never have happened within this kind of drill. Now understandably the rest of the live fire drills have been canceled temporarily while the investigation is ongoing.

FOSTER: OK, Paula, thank you. Getting all these gun crime stories suddenly out of Japan is such a shock.

NOBILO: U.S. Secretary of State Antony Blinken has spoken by phone with China's Foreign Minister Qin Gang ahead of Blinken's expected visit to China in the coming weeks.

FOSTER: China's foreign ministry says they discussed Beijing's for concerns including Taiwan. While the U.S. State Department says they talked about the importance of communication to avoid miscalculation and conflict.

NOBILO: And in terms of communication and miscalculation, CNN's Kristie Lu Stout joins us now to discuss this more. Because Kristie, the wider context of this of course is that Blinken had a meeting scheduled I think back in February when the spy balloon saga unfolded. So where does their relationship stand now and what more do we know about this call?

KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, this was an interesting conversation because there were some pointed comments from Qin Gang. You know, Chinese foreign minister said during this call that the U.S. should respect China's core concerns including the issue of Taiwan. This was conveyed during this phone conversation that took place on Wednesday between Qin Gang and America's top diplomat Antony Blinken, ahead of Blinken's expected visit to China.

Now according to a Chinese foreign ministry readout, Qin said that China/U.S. relations have encountered new difficulties and challenges and that the responsibility is clear. And the statement of the foreign ministry added this. Let's bring it up for you.

Quote: It is hoped that the U.S. will take practical actions to implement the important consensus reached by the two heads of state in Bali -- that making reference to the G-20 summit that Took Pl. in November -- and effectively manage differences. Unquote.

Now the ministry also called on the U.S. to stabilize and return to the track of healthy development. Now on Twitter we heard this from Antony Blinken.

He said, quote, spoke tonight with the PRC State Councilor and Foreign Minister Qin Gang by phone. Discussed ongoing efforts to maintain open channels of communication as well as bilateral and global issues. Unquote.

[04:15:00]

Now sources tell CNN that Blinken is bound for Beijing in the coming week. His trip was originally scheduled back in February but was postponed due to the Chinese balloon incident. And this phone call comes after the White House recently warned of growing aggressiveness by the Chinese military earlier this month. As you recall, warships from China in the U.S. were involved in that near collision in the Taiwan Strait. The U.S./China relationship is at its lowest point in decades over the issues of Taiwan, over technology, over trade, over territorial disputes, but engagement is taking place. Just last month the White House national security adviser met with a top Chinese official Wang Yi in Vienna for talks that were described as candid and constructive.

Also in May, the CIA director paid a visit to China. A trip that wasn't disclosed until this month. And also earlier this month, the U.S. commerce secretary and the U.S. trade representative both met with the Chinese commerce minister in the United States. And now we have today's phone call between Qin Gang and Antony Blinken which sets the stage for this long-awaited visit by Blinken to China. Back to you.

NOBILO: Kristie in Hong Kong. Thank you very much.

Ahead on CNN NEWSROOM, the U.S. Federal Reserve board ponders an 11th consecutive interest rate hike. The new data shows inflation is cooling. So, will that help their decision.

FOSTER: Plus, millions of people are in the path of a powerful cyclone barreling toward Pakistan and India. The latest forecast and developments coming up.

NOBILO: And possibly the creepiest and most concerning story of the day. Later a woman back from the beyond. A woman in Ecuador is declared dead but later heard pounding on the lid of her coffin from the inside.

FOSTER: True story.

NOBILO: Yes.

(COMMERCIAL BREAK)

NOBILO: Another day, another rally on Wall Street as investors remain bullish that the Federal Reserve board will pause its relentless string of interest rate hikes. They're gaining confidence from May's consumer price data showing annual inflation hitting its lowest level since March 2021. The Fed is expected to announce its decision at 2:00 p.m. Eastern today.

And here is a look at how things stand in terms of futures. So a mixed bag. The Dow obviously still reacting to those fears ahead of that much anticipated decision. And here's CNN's Matt Egan with our inflation report.

(BEGIN VIDEOTAPE)

MATT EGAN, CNN REPORTER: Max and Bianca, there's no denying inflation is cooling off big time. The latest numbers from the government show that consumer prices jumped by 4 percent year over year in May, that is not good, but it is so much better than the four decade high of 9.1 percent last June. Annual inflation has now cooled off 11 months in a row and it's now at the lowest level since March of 2021.

All of that is moving in the right direction. It is very good news when it comes to the cost of living. One problem though. The most recent cool-off in inflation is being driven in large part by the plunge in gasoline prices. And that is not likely to be repeated. When you look under the hood, you can see that underlying inflationary pressures are stubbornly high, they have not cooled off all that much in large part because of the spike in housing costs. So it is going to take some time for that metric to really get back to healthy levels.

But beyond the official government numbers, economists and investors they like to look at alternate sources of data. And we did get some encouraging news on that front as well. Because online shoppers are being greeted by rapidly dropping prices. Adobe Analytics says that online prices in May fell by 2.3 percent year-over-year, that is the biggest decline since April 2020. Back when COVID-19 pandemic was causing all kinds of chaos in the world economy.

Computers, electronics, flowers all experienced large price drops. Online prices for groceries are still going up rapidly, but even those have cooled off. So when you take all this together, Wall Street is betting that the latest inflation indicators are going to give the Federal Reserve cover to do absolutely nothing in today's meeting.

Investors are growing increasingly confident that the Fed will hold interest rates steady, that would snap a streak of ten consecutive meetings where they've raised rates. But because inflation is still not back to healthy levels, investors and economists are penciling in another interest rate hike come July. Max and Bianca. (END VIDEOTAPE)

NOBILO: Despite overall inflation significantly cooling, grocery prices in the U.S. are starting to climb again. Extreme weather, the war in Ukraine and supply chain disruptions are just some of the reasons to blame here. The U.S. Bureau of Labor and Statistics report that grocery prices were nearly 6 percent higher in May than the same time last year. And restaurant menu prices were up more than 8 percent. And specific foods have also become more expensive in the last year, including flour, bread, juice, fruits and vegetables. A notable exception to the increases have been eggs. After skyrocketing earlier this year, prices fell nearly 14 percent in May and that's the largest single month decline since 1951, a time that Max remembers well.

FOSTER: You crack me up.

The maker of the Instant Pot, a popular kitchen appliance, is filing for bankruptcy. Instant Brands blames high interest rates and tighter credit for the move. But the company who also makes Pyrex and Corning ware says it's still seeing a lot of growth since the start of the COVID pandemic and that 90 percent of U.S. homes now have at least one of its products. It's filing for chapter 11 bankruptcy which allows the company to stay in business as it gets rid of its debt.

An unprecedented drought is affected the Panama Canal prompting authorities to implement water saving measures. Water levels in at least one reservoir are dropping and a forecast to hit historic lows next month. And the start of El Nino, which brings warmer than average temperatures could make things even worse.

[04:25:00]

Surcharges and weight limits are being imposed on ships using the global trade route. And new drought restrictions could force ships to carry fewer goods as well.

Millions in India and Pakistan are hunkering down or evacuating ahead of a powerful cyclone's arrival. The storm has been churning in the Arabian Sea and is expected to make landfall near the India/Pakistan border on Thursday. Urban flooding is forecast for Pakistan's largest city, Karachi. Where businesses and shopping malls are shutting their doors as the storm is expected to bring heavy rain and damaging winds to the area. And in India's Gujarat state, at least 21,000 people have been moved to safer ground. The heavy rain is also expected to trigger land slides and flash flooding across the region.

Still ahead, looking for lawyers. Donald Trump's legal team is in a state of flux despite his arraignment in Miami. We'll explain what's making the process so difficult.

Plus, overnight missile attacks on Ukraine. This time it hit civilian targets in Odesa and Donetsk.

(COMMERCIAL BREAK)

NOBILO: Welcome back to CNN NEWSROOM. I'm Bianca Nobilo.

FOSTER: I'm Max Foster. If you're just joining us, let us bring you up to date with the top stories.

Ahead of a high stakes visit to Beijing, U.S. Secretary of State Antony Blinken has spoken with his Chinese counterpart, they discuss maintaining open lines of communication and managing relations to avoid conflict between their countries.

And Donald Trump has made history becoming the first former U.S. president to be charged and arraigned for federal crimes. He pleaded not guilty to 37 counts in the classified documents investigation on Tuesday. But it's a long way ahead for the trial itself, which could take months or even years to play out.

[04:30:00]