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CNN International: Actors Joining Writers on the Picket Line; Biden: Putin Has Already Lost the War; NATO Assures Ukraine It Will Join Alliance; U.S. Delivers Cluster Munition to Ukraine; Jared Kushner, Hope Hicks Have Given Testimony; Secret Service Ends Probe Into Drugs Found at White House; Nearly All of California Under Heat Alerts; No Breakthroughs in Latest U.S.-China Talks; Hacking Operation Gave China Critical Insight into U.S. Thinking Ahead of Blinken Trip. Aired 4-4:30a ET

Aired July 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 a warm welcome to our viewers joining us in the United States and all around the world. I'm Bianca Nobilo live from London. Max Foster has the day off. He's on holiday. Just ahead on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: How they plead poverty that they are losing money left and right while giving hundreds of millions of dollars to their CEOs. It is disgusting.

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Putin has already the war. Putin has a real problem. How does he move from here? What does he do?

UNIDENTIFIED MALE: You should absolutely be leery of extreme heat like this for extended days.

UNIDENTIFIED FEMALE: I'm very worried that a number of people will die in this heatwave. Heat is a silent killer.

(END VIDEO CLIP)

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

FOSTER: It is Friday, July 14th, 9:00 a.m. here in London, 1:00 a.m. out in Hollywood where TV and movie production is pretty much shut down. SAG-AFTRA the union representing 160,000 actors is now on strike. In the coming hours members are expected to picket in front of major studios and streaming services. They join screen writers who've been on strike since May. This is the first time in six decades that both unions are on strike at the same time. The news came during the British premier of the biopic "Oppenheimer" in London. The cast walked out of the screening to support their colleagues.

(BEGIN VIDEO CLIP) FLORENCE PUGH, ACTOR: It's been a really, really intense few days for a lot of people not so affected. But everybody in the industry will be affected by the decision. But affected by the decision that is necessary.

KENNETH BRANAGH, ACTOR AND DIRECTOR: We know this it's a critical time in the industry and the issues that are involved need to be addressed. And there are difficult conversations. I know everybody is trying to get a fair deal. That's what's required. And so, we'll support that.

(END VIDEO CLIP)

NOBILO: In response to the strike, the studio said the union turned its back on a substantial offer of high pay and benefits. CNN's Chloe Melas has the latest for you.

(BEGIN VIDEOTAPE)

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: Hollywood essentially came to a complete halt on Thursday when a union called SAG-AFTRA representing over 160,000 actors announced that they were going to on strike. And as you know currently, the writers Union, WGA, represents about 11,000 writers and they have been on strike for about two months. In a press conference on Thursday afternoon Fran Drescher, the president of SAG- AFTRA, had this to say.

FRAN DRESCHER, SAG-AFTRA PRESIDENT: I cannot believe it quite frankly how far apart we are on so many things. How they plead poverty that they are losing money left and right when giving hundreds of millions of dollars to their CEOs. It is disgusting. Shame on them.

MELAS: Friday we are expecting to see both writers and actors taking to the picketing lines in front some of Hollywood's biggest studios. You know, we know that there was a letter that was signed by several of the top actors in Hollywood from Meryl Streep to Jennifer Lawrence. Recently saying that they were going to be drawing a hard line when it came to what they were asking of studios. It has to do with streaming, wanting to be paid higher residuals. And for studios to address artificial intelligence and how that plays into productions. And how are actors and both writers going to be able to keep their jobs safe. So we might see some famous faces on the front of those picketing lines and we will be bring you all that coverage. Back to you.

(END VIDEOTAPE)

NOBILO: U.S. President Joe Biden is back in Washington ending a busy week of talks with European allies -- as the war in Ukraine rages in their backyard. One of Mr. Biden's primary goals here was securing long time commitments from allies to keep supporting Ukraine. Speaking at a news conference just a short distance from the Russian border, the president confidently predicted that Ukraine would prevail.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Putin's already lost the war. Putin has a real problem. How does he move from here? What does he do? He could end the war tomorrow. He could just say I'm out. But what agreement is ultimately reached depends upon Putin and what he decides to do. But there is no possibility of him winning the war in Ukraine. He has already lost that war.

(END VIDEO CLIP)

[04:05:00]

NOBILO: Although Ukraine has not yet been formally invited to join NATO, President Zelenskyy was assured by NATO leaders this week that it would happen when the war is over. That news was not well received in Moscow, as you might expect. Russia's president had this reaction.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): As for Ukraine's membership in NATO, this creates threats for Russia security obviously. And one of the reasons for this special military operation is the threat of Ukraine joining NATO. I'm convinced that it won't improve the security of Ukraine itself and in general it will make the world a lot more vulnerable and will lead to additional tension on the international stage.

(END VIDEO CLIP)

NOBILO: Up to 3,000 U.S. military reservists will be headed to Europe. President Joe Biden has authorized the Pentagon to deploy them as part of the Operation Atlantic Resolve, which has now received a new designation.

(BEGIN VIDEO CLIP)

LT. GEN. DOUGLAS SIMS, DIRECTOR OPERATIONS, U.S. JOINT CHIEFS OF STAFF: Operation Atlantic Resolve will be designated as a contingency operation. This new designation benefits troops and families with increases in authorities, entitlements and access to reserve component forces and personnel. This reaffirms the unwavering support and commitment to the defense of NATO's eastern flank in the wake of Russia's illegal and unprovoked war on Ukraine.

(END VIDEO CLIP)

NOBILO: Officials say it will take about six months to send the new troops. They'll join about 100,000 others who are already deployed in Europe under that operation. It's been bolstering NATO's eastern flank since 2014.

Officials say at least one person was injured after a Russian drone strike on a city in southern Ukraine. They say the drones destroyed multiple buildings in Kryvyi Rih which is located northeast of Kherson. But Ukraine says 23 other drones launched by Russia overnight have been shot down. Russia is also reporting cross-border drone strikes coming from Ukraine saying they damaged an apartment building in a border region.

Meanwhile, US-made cluster munitions are now part of Ukraine's war arsenal. U.S. officials are confirming that they delivered some of the controversial weapons to Kyiv. A Ukrainian general said they could reshape the battlefield to Kyiv's advantage.

Salma Abdelaziz has been monitoring these developments for us and she joins me with more. So Salma, what impact are these cluster munitions expected to have in Ukraine and why does the U.S. not share the concerns of some of its allies about the propriety of actually them?

SALMA ABDELAZIZ, CNN CORRESPONDENT: Well, if you asked Ukrainian commanders, they believe that it could have a huge impact on the battlefield. They say that just the fear from Russian troops of the fact that they now have these cluster munitions in hand could make a change to what has so far has been very modest gains that we've seen from the Ukrainian military. I want you to take a listen to how one of the commanders along the southern front lines, Ukrainian commander described it.

BRIG. GEN. OLEKSANDR TARNAVSKYI, UKRAINIAN ARMY (translated text): In general, this is a very powerful weapon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Have you used them already? And how much do you think that they're going to change the fight?

TARNAVSKYI (translated text): We just got them, we haven't used them yet but they can radically change (Battlefield). The because the enemy also understands that with getting these ammunition we will have an advantage.

(END VIDEO CLIP)

ABDELAZIZ: Now on the battle field but yet to be used. To your question as to the concerns. Of course, this is a highly controversial weapon. It's been banned in more than 100 countries. But the United States says that it will only be used in very limited tactical uses on the ground and that they've received written guarantees from their Ukrainian counterparts that that will take place.

The U.S. also goes on to say that this is a temporary measure. That the ammunition that was needed by Ukrainian forces on the ground was unavailable, that once those stockpiles are back up, they will stop providing those cluster munitions. So they see this at a stop gap measure for now. But again, it's raised a lot of eyebrows.

NOBILO: Speaking of raising eyebrows. Vladimir Putin has said that the Wagner group no longer exist. What can we extrapolate from that remark? And does the evidence suggest that that's true?

ABDELAZIZ: President Putin in these comments with splitting hairs. So this is a meeting that took place just days after this insurrection, this attempted rebellion on Moscow. We had heard earlier from the Kremlin spokesperson that President Putin had held an event at the Kremlin with 35 Wagner bosses including Yevgeny Prigozhin. We're now hearing directly from President Putin on this meeting. And he says in response to a reporter's question about whether the Wagner group could be co-opted into the regular Russian military, he responds emphatically they don't exist, well, at least legally they don't exist. We don't have laws that allow for a private military group.

I'm obviously paraphrasing here, but that essentially what Vladimir Putin was saying. But again, eyebrows raised.

[04:10:00]

This is a very curious meeting where President Putin in his words, is saying that he met with these 35 bosses including Yevgeny Prigozhin in this formal easy going setting, if you will, in the Kremlin and gave them options. Not very much that President Putin that we know that seems to be this fierce iron fisted figure. This man sounds like someone who is democratic, taking opinions, deciding what they wanted to next.

NOBILO: And also in denial seemingly. Salma Abdelaziz, thank you so much for joining us.

President Biden is reaffirming his commitment to bringing home Americans illegally detained abroad.

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BIDEN: I'm serious about prisoner exchange. And I'm serious about doing all we can to free Americans being illegally held in Russia or anywhere else for that matter. And that process is underway.

(END VIDEO CLIP)

NOBILO: "Wall Street Journal" reporter Evan Gershkovich has been detained in Russia for more than 100 days after being arrested on espionage charges that he, the Journal and the U.S. government vehemently denied. And fellow wrongfully detained American, Paul Whelan, has been in prison for nearly five years, also on espionage charges that he and Washington deny. U.S. officials recently confirmed that quiet discussions are under way with Russia to try to secure the release of both Gershkovich and Whelan.

The hours ahead will provide another test of the U.S. House Speaker Kevin McCarthy's leadership. They will also demonstrate how even the U.S. military is subject to the country's culture wars. Passing the National Defense Authorization Act is supposed to be a fairly straightforward process, a bipartisan matter. But this year conservative hardliners within the Republican majority have pushed through several controversial amendments.

Among them a ban on the Defense Department covering expenses related to abortion services. Another would bar a health care program for service members from covering hormone treatments for transgender individuals. That has many Democrats saying that they will not back the bill and even unanimous Republican support is not guaranteed. If the House passes the defense bill, it would still need to be reconciled with the Democrat controlled Senate.

Sources tell CNN that former President Donald Trump's son-in-law and a former top aide have given testimony in the investigation into efforts to overturn the 2020 election. Jared Kushner and Hope Hicks have both testified before the grand jury in the case. Their appearances are notable because they were both mention of Trump's inner circle. CNN's Kaitlan Collins has the details on what we know.

(BEGIN VIDEOTAPE)

KAITLAN COLLINS, CNN CHIEF CORRESPONDENT: It's notable who's gone. Which is obviously Jared Kushner and Hope Hicks. Probably two of the closest people to Donald Trump during his time in the White House and certainly during this time period. We know that they both went and testified before the grand jury, this hearing for testimony in this -- in their investigation into the efforts to overturn the election by not just Trump but also his allies.

And I think it matters because Jared Kushner was obviously there. You know, I was told back in mid-December of that time period that Jared Kushner was going with Ivanka Trump and urging Trump to concede the election. You know, they never bought into the idea that it was stolen. That doesn't mean they spoke up, but going to him privately and urging him to concede.

Hope Hick is also notable. We know that she spoke to the January 6 Congressional Committee. It's kind of interesting how much of a roadmap they have paved for a lot of this stuff. But she talked to them about urging Trump to remain people -- to tell people who came to Washington for January 6 to remain peaceful in the days leading up to that day.

So they both have kind of offered their perspectives of that to the January 6 committee. We don't fully know what they said to the grand jury that was hearing them when they went last month. We do know one line of questioning was whether or not Trump had privately acknowledged that he had lost.

(END VIDEOTAPE)

NOBILO: Meantime, in the investigation into Trump handling of classified documents, the special counsel says there's no reason to postpone scheduling a trial date. In a court filing special counsel Jack Smith aggressively rejected the arguments for the delay presented by Trump and his co-defendant. The special counsel is seeking a trial date in mid-December. Trump faces charges related to retention of national defense information. He and Nauta also face charges stemming from alleged attempts to hide the materials. And both have pleaded not guilty.

And the Secret Service has concluded its investigation into cocaine it found at the White House earlier on this month. And agents still don't know who brought the small bag into the West Wing. One Republican lawmaker says that's ridiculous.

(BEGIN VIDEO CLIP)

REP. TIM BURCHETT (R-TN): They don't know who it is and they -- it's a complete failure. I mean, this thing is ridiculous. You know, I don't know if this is a diversion or not. Because it's a pretty good diversion. A lot of people are upset about it. Because they don't -- clearly the Secret Service is failing at their job.

(END VIDEO CLIP)

NOBILO: A source familiar with the investigation says the leading theory is that visitor on the weekend tour left it there. CNN's Jeremy Diamond reports.

(BEGIN VIDEOTAPE)

[04:15:00]

JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: Well the Secret Service on Thursday closing the investigation into that baggy of cocaine that was found at the White House less than two weeks ago. And they're closing it without a suspect being found. The Secret Service says in a statement that they closed that investigation due to, quote, a lack of physical evidence.

And now this came after a nearly two week long investigation carried out by the Secret Service. They went through visitor logs of hundreds of individuals who walked in and out of the West Wing in the days preceding the discovery of that small less than one gram baggy of cocaine.

They went through surveillance footage. The also collected -- tried to collect DNA and fingerprint evidence from that baggy. But a source familiar with the investigation telling me that there was insufficient DNA and they were not able to pull fingerprints off of that baggy. They therefore weren't able to identify who brought in that baggy to the lower level entrance of the West Wing where this was discovered in a cubby. Which we should note, is used for -- where individuals who come in for tours, where they would leave their cell phones. It's and also where officials going into classified settings would leave their cell phones before going into there.

The Secret Service says in a statement, quote, there was no surveillance video footage found that provided investigative leads or any other means for investigators to identify who may have deposited the found substance in this area. Without physical evidence, the investigation will not be able to single out a person of interest from the hundreds of individuals who passed through the vestibule where the cocaine was discovered.

Now a source familiar with the investigation says that that discussion of surveillance footage, because while there was -- there are surveillance cameras in that area, they were not directly trained on those cubbies where the cocaine was found.

Now another source familiar with this investigation says that the leading theory remains that this was left by a visitor who walked into the West Wing for one of those tours over that weekend. But that is not the definitive conclusion of the Secret Service. The White House meanwhile in a statement, they say that they've been brief the by the Secret Service on the outcome of this investigation and that they are reviewing that information.

Jeremy Diamond, CNN, the White House.

(END VIDEOTAPE)

NOBILO: Investigators from the House Ethics Committee have begun reaching out to witnesses as part of a recently revised investigation into Congressman Matt Gaetz. The investigation is focused on allegations that the Florida Republican may have engaged in sexual misconduct, illicit drug use or other misconduct. At least one witness tells CNN they spoke with investigators about alleged lobbying violations too. A source familiar with the House's panel work, says that the Justice Department's decision not to bring charges against Gaetz does not impact what the committee will and won't investigate. Gaetz has denied any wrongdoing.

People in Vermont are bracing for another round storms and flashfloods after heavy rainfall left catastrophic flooding earlier in the week. Here's what the governor of Vermont had to say.

(BEGIN VIDEO CLIP)

BILL SCOTT, (R) GOVERNOR OF VERMONT: This isn't over. And it won't be over after this storm. On Sunday, unfortunately, there's another chance for heavy rain statewide.

(END VIDEO CLIP)

NOBILO: At least one person died in the flooding, a 63-year-old man drowned in his home on Wednesday -- according to the Vermont Department of Health.

In Alabama, there are reports of people being trapped in their homes because of heavy flooding. High water also forces a number of road closures and traffic delays there.

And take a look at this. A tornado was spotted in Illinois west of Chicago. As a it swirls you can see a beautiful rainbow emerging to the right of the twister. Several tornado warnings were issued across the Chicago area Wednesday evening.

And more than 19 million people in the U.S. are under heat alerts right now from Washington state down the West Coast including almost all of California and all the way south to Florida. The heat dome in the Southwest will only expand today and into the weekend. The all- time high temperature of 117 degrees Fahrenheit could be tied or even broken in Las Vegas on Sunday. And Death Valley, California could reach an unbelievable 130 degrees or higher on Saturday and Sunday. Here's what a fire captain in Arizona had to say about this extreme heat.

(BEGIN VIDEO CLIP)

CAPT. ROB MCDADE, PHOENIX, ARIZONA FIRE DEPARTMENT: This is a very dangerous heat wave. I think sometimes we're insulated in our homes. The air conditioning is on, we're in our air-conditioned car. We go out, we travel across the parking lot of one minute and then we are inside the restaurant. But it is dangerous and it is fatal. It's fatal and it's something that you just can't brush aside. You should absolutely be leery of extreme heat like this for extended days.

(END VIDEO CLIP)

NOBILO: The excessive heat is obviously especially dangerous for people who work outdoors. So here is advice from those who must work on the roofs.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: After a long time, it's getting very, very hot.

[04:20:00]

And on the roofs especially when the sun heats the metal and all the tools we're using, so that's what we're doing come very early.

UNIDENTIFIED MALE: All we can do in this heat, is send them out with a lot of water and ice, let them go on as many breaks as they want to.

(END VIDEO CLIP)

NOBILO: Still to come, concerns about a hacking operation that got inside the email of a U.S. government agency.

And it's been branded as a giant leap for women's empowerment, a birth control pill that Americans can get without a prescription.

And India's moon shot, the countdown is on for the launch of the country's historic space mission, but hopes for a controlled landing on the lunar surface when we come back.

(COMMERCIAL BREAK)

NOBILO: The U.S. Secretary of State had, quote, candid and constructive talks with a top Chinese diplomat Thursday on the sidelines of the ASEAN foreign ministers summit. A State Department official says there were no breakthroughs, although none were really expected. The meeting in Jakarta was the latest effort to lower the temperature between the two superpowers after months of soaring tensions.

We're told that Antony Blinken and Wang Yi spent a fair amount of time discussing fentanyl. Many of the chemicals used to manufacture it comes from China.

[04:25:00]

But China so far seems unwilling to cooperate with the U.S. on stopping the flow. Blinken will hold a news conference in the hours ahead shortly before leaving Jakarta.

And to discuss all of this CNN's Marc Stewart is following the events from Tokyo. Marc, what was achieved here or perhaps more significantly not achieved?

MARC STEWART, CNN CORRESPONDENT: Well, Bianca, let me use the words that we're hearing from the U.S. And I will apologize in advance for using diplomatic speak. But according to U.S. officials, Secretary of State Antony Blinken and a Chinese diplomat touched upon bilateral, regional and global issues. So while we don't have many specifics. That would include everything, from the tension in Taiwan, to what we are seeing in North Korea.

And on that topic of North Korea, it's something that the Secretary of State recently addressed during this visit to Indonesia. Let's take a listen.

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, U.S. SECRETARY OF STATE: We need to work to end North Korea's unlawful weapons of mass destruction program and ballistic missile launches. Yet another one just this week which threatened the region and the global nonproliferation regime.

We must uphold the freedom of navigation in the South and East China Seas and maintain peace and stability across the Taiwan Strait. And we must push for a just and lasting peace to Russia's war of aggression on Ukraine.

(END VIDEO CLIP)

STEWART: And on the topic of the Russian war with Ukraine, that's something that China has not specifically condemned. So that perhaps could have also come up in conversation.

We should also point out the fact that this meeting, this sideline meeting, took place between the United States and China is very significant. And Bianca, for months we been talking about this frosty relationship between the United States and China. But slowly things are starting to thaw out.

Earlier in the year, we saw Secretary of State Antony Blinken pay a visit to China. Just a couple weeks ago we saw Secretary of the Treasury Janet Yellen make a visit to China. And now this discussion on the sidelines in Indonesia. Perhaps it is setting the stage for an even bigger conversation between President Biden and Chinese leader Xi Jinping. We will have to see. But these incremental steps, Bianca, they are seen as very significant.

NOBILO: Marc Stewart, thank you as always for breaking it all down for us from Tokyo.

The U.S. State Department says Blinken also raised concerns about hacking with China. Warning the U.S. government will respond to any action that targets its interests. That is after Microsoft announced China based hackers breached email accounts of two dozen organizations including some U.S. government agencies. CNN's Kylie Atwood explains what China might have gained from that attack.

(BEGIN VIDEOTAPE) KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: The Biden administration believes that China's hack of U.S. government agencies provided the Chinese government with insights into the Biden administration's thinking ahead of the planned visit to China by the Secretary of State Antony Blinken. That's according to two U.S. officials familiar with the matter.

And we should note that Microsoft said that they learned about this hack on June 16th from their customers. And that's when they began investigating it. That is the same day that the Secretary of State left Washington and headed to Beijing for those meetings.

Now we should also note that this hack only was able to gain access to the unclassified side of U.S. systems. And so therefore when you talk to U.S. officials, the amount that the Chinese officials were able to glean was quite limited. But it did provide them with some insights leading into the Secretary of State's visit which could have contributed to how Chinese officials thought about that visit, which is significant. We should also note that Secretary of Commerce Gina Raimondo, who was also compromised in this hack. She is planning to visit Beijing in the coming months.

Kylie Atwood, CNN, Washington.

(END VIDEOTAPE)

NOBILO: A red alert heatwave warning is in effect in some major cities in Italy as temperatures continue to soar. We'll have a live report for you from Rome.

And counting down. We are getting closer to the launch of India's historic space mission for a controlled landing on the moon. Why engineers are hoping the third time is a charm.