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CNN International: Trump Dismisses Question About Special Counsel Probe; House Speaker McCarthy Warms to Biden Impeachment Inquiry; Chinese Foreign Minister Replaced; Justice Department Sues Texas Over Floating Border Barriers; Moody's: Reforms a Significant Risk to Israeli Economy; PSG Grants Saudi Club Permission to Talk to Striker Mbappe. Aired 4:30-5a ET

Aired July 26, 2023 - 04:30   ET

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

[04:30:00]

MAX FOSTER, CNN ANCHOR: Hunter Biden is expected to enter a plea deal later today for two federal tax charges. Justice Department prosecutors have agreed to resolve a felony gun charge if he abides by court imposed rules.

A top elections security expert fired by Donald Trump, confirms he has spoken with special counsel Jack Smith's team. Chris Krebs says the conversation took place in early May. CNN has learned that Smith's team has been focused lately on Trump's claims that the election was rigged despite praising election security earlier in 2020. The former president and current candidate was in New Orleans on Tuesday. He visited the city's historic French Quarter and posed for pictures before heading for a private fundraiser. Reporters asked him about the special counsel investigation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (INAUDIBLE) is there any question (INAUDIBLE).

Donald Trump, Republican presidential candidate: I don't know anything about it. I don't know. We have crooked nation. We have a lot of crooked nation and people running nation. And our country is failing and we have to turn it around. That's very Thank you very much.

UNIDENTIFIED FEMALE: You don't look like a guy who is concerned about --

TRUMP: I'm not concerned. I'm not concerned. We have a -- we're legit. We have very corrupt people running our country.

(END VIDEO CLIP)

FOSTER: Meanwhile, one of Trump's biggest allies on Capitol Hill, Republican House Speaker Kevin McCarthy, is trying to change the subject for the first time. He's directly threatening President Biden with impeachment. CNN's Melanie Zanona explains.

(BEGIN VIDEOTAPE) MELANIE ZANONA, CNN CAPITOL HILL REPORTER: Well, House Republicans are inching closer to an impeachment inquiry into President Joe Biden. Speaker Kevin McCarthy this week issued his most explicit threat yet against Biden claiming that he was engaged in a foreign bribery scheme to benefit his son Hunter Biden. These are claims that the White House has furiously denied and in which Republicans have yet to provide any evidence of, but it has fueled new momentum on Capitol Hill. Let's take a listen to Kevin McCarthy.

REP. KEVIN MCCARTHY (R-CA) U.S. HOUSE SPEAKER: The word of this continues to unravel. It rises to the level of an impeachment inquiry. What that simply provides is that the American public has a right to know. And this allows Congress to get the information to be able to know the truth.

ZANONA: Now McCarthy did not make those comments by accident. Sources told me and my colleague Manu Raju and Annie Greer that in recent weeks Kevin McCarthy has been hearing from top Republicans both on and off Capitol Hill that he should be prioritizing a Joe Biden impeachment especially over the impeachment of a Biden cabinet official.

Republicans have really been all over the map with their calls to impeach. From calling to impeach Attorney General Merrick Garland to Homeland Security Secretary Alejandro Mayorkas. But in recent weeks Republicans have started to realize that they're going to have the political capital and the time to do multiple impeachments. And so, the thinking goes, according to top Republicans, is that they might as well just go after their top target which is Biden.

But nonetheless, not all Republicans are still sold on this idea. There are still moderates in the party who are deeply concerned about how this could backfire in the midterms. In fact I'm told that issue was raised in a private leadership meeting between McCarthy and some of his team on Tuesday evening. So if and when Republicans decide to go down the route, it's going to be a complicated sales job.

Melanie Zanona, CNN, Washington.

(END VIDEOTAPE)

FOSTER: China's foreign minister has been mysteriously missing for a month now and now he's out of a job as well. Beijing has announced that Qin Gang has been sacked from his high profile post and he'll be replaced by China's top diplomatic advisor Wang Yi. Now it's a significant fall from grace for a Qin. A man who was recently was one of President Xi Jinping's top aides, of course. CNN's Marc Stewart has been tracking Qin's mysterious disappearance and his abrupt change of leadership -- Marc.

MARC STEWART, CNN CORRESPONDENT: Hi, Max. Look, this departure and his disappearance itself is certainly intriguing but also the speed in which it occurred. Because it was only one month ago we saw Qin Gang meeting with leaders from Sri Lanka, from Vietnam, from Russia, in Beijing. But since then he hasn't been seen since. And there are some strong lingering questions. Including where is he?

Why was he removed and what is next? Will he ever reemerge? While the government is remaining quite silent about that, it is insisting that its relationship with world powers including the United States will remain strong, if you will.

We just received a statement within the last few hours from the ministry spokesperson from Beijing, let me share that with you.

They say: Our position on U.S./China relations has been consistent. We have always viewed and developed China/U.S. relations from the three principles of mutual respect, peaceful coexistence and win/win cooperation.

And we have heard from other world leaders including from Japan and the U.S. Secretary of State Antony Blinken, who say that they will see this future direction to continue as is.

[04:35:10]

And learning that they've had strong relations with Qin Gang and also Wang Yi. So that is -- that's where the diplomatic stage is set.

Finally, Max, I should point out that this disappearance isn't just physical. It's also virtual. A lot of social media references to Qin Gang have been scrubbed. In addition his presence on the Chinese government website has also disappeared. Those references have all been removed according to a government spokesperson, this is all basically in accord with regulations.

FOSTER: Still to come, a setback for the Biden administration as a U.S. federal judge blocks a key asylum policy. Implications of that ruling just ahead.

Later, a record deal in the making as a Saudi soccer club gets permission to talk with French striker Kylian Mbappe.

(COMMERCIAL BREAK)

FOSTER: Video out of Haiti shows people fleeing from the area around the U.S. Embassy in Port-au-Prince. Driven out what appears to be teargas. CNN can't verify who deployed teargas. The video shows a man carrying a firearm wearing what appears to be the uniform of Haiti's National Police. But it's unknown if he's an actual officer. It comes after local violence drove residents from their homes to the area around the embassy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): I don't know the reason. They just shoot and they asked for the area. They took our house and we're in the street, we want help to go back home. To the Haitian government, we send this message because we want to come back home.

(END VIDEO CLIP) FOSTER: CNN has reached out to the Haitian National Police. Haitian

civil protection and the U.S. Embassy for comment but we haven't heard back yet.

The U.S. Department of Justice says it will appeal a federal court's ruling blocking the Biden administration's asylum policy.

[04:40:00]

A judge on Tuesday blocked the controversial policy and this comes as the Justice Department is suing the state of Texas over floating barriers installed by the state in the Rio Grande River to block migrants crossing from Mexico. CNN's Rosa Flores has more.

ROSA FLORES, CNN CORRESPONDENT: The showdown between the U.S. DOJ and the state of Texas is happening right here in Eagle Pass, Texas. Let me set the scene for you.

The property that I'm on belongs to the Orbina family. They have 352 acres and there are gates like these that give them access towards the river. But take a look, they are barricaded, they claim by the state of Texas. You can see concertina wire. This is a burn that was created, according to them, by the state of Texas. Now beyond that, there are several layers of border barrier before we get to the buoys.

These buoys are at the center of this legal battle between the U.S. DOJ and the state of Texas. The U.S. DOJ filed suit against the Lone Star state saying that these buoys were deployed unlawfully. That the state of Texas did not get the proper permits from the Army Corps of Engineers and that it could create a diplomatic situation with Mexico.

Mexico's top diplomat complaining to Washington saying that this violates two treaties between the two countries. Well, Governor Greg Abbott digging in his heels saying that the state of Texas has sovereign authority based on the Texas and U.S. Constitutions. And the office of the Texas Attorney General saying that they are ready to duke it out with the U.S. DOJ in federal court.

Now one of the concerns from the U.S. DOJ is the humanitarian risks, the public safety risks. Take a look at this video. We were on the Orbina's property when a woman was being tended to by paramedics. Now you look at that video, that woman is being rendered aid. The Orbina's told us the story. They say that this woman was by the Rio Grande and asking for help. Law enforcement had to cut two layers of concertina wire to bring her towards the paramedics. They also had to cut through chain link fencing.

Now the property owner says that they witnessed as migrants have died on their property and they want the dying to stop.

In this federal lawsuit between the U.S. DOJ and the state of Texas, the U.S. DOJ is asking Texas to remove the border buoys. Well, the Orbina family is also asking the state to remove the concertina wire from their property. And they say that Texas so far has refused. Now CNN has reached out to the state of Texas for comment and has not heard back. Rosa Flores, CNN, Eagle Pass, Texas.

(END VIDEOTAPE)

FOSTER: At least 31 people died and more than a dozen injured after clashes between inmates and police at a prison in Ecuador -- according to Ecuador's Attorney General. More than 100 prison employees who've been held hostage in several prisons have also been released. Now the country's president has declared a state of emergency in all prisons to make sure a crisis like this doesn't happen again.

There are worries about an economic fallout in Israel after the government pushed through the first part of controversial judicial overhaul plan. Labor unions are urging the government to reverse their decision as protests continue. This as thousands of reservists are refusing to report for service. The contentious bill passed on Monday would strip the Supreme Court of its power to declare government decisions unreasonable. The legislation has also sparked multiple legal challenges.

For more let's go to journalist Elliott Gotkine who joins us live from Tel Aviv. And we're really getting a sense now about the wider fallout from this bill passing.

ELLIOTT GOTKINE, JOURNALIST: Very much so, Max, and I suppose the big worry for this government is that momentum seems to be building in terms of the damage and potential damage to Israel's economy. So yesterday we heard from Morgan Stanley downgrading its outlook on the Israeli economy. We heard from Moody's, one of the three big credit ratings agencies also warning about the potential fallout for Israel's economy, saying that there are significant risks for political and social tensions over the issue of the judicial overhaul will continue with negative consequences for Israel's economy and security situation.

And we still haven't yet heard from Standard & Poor's and Fitch. The other two big rating agencies. Which could have a further negative impact on things like the Israeli currency, the shekel, which is close to a three-year low against the U.S. dollar. And also the Israeli stock market, which also underperforming other indexes around the world. So there are those concerns.

And I suppose the other big concern is investment in Israel. Israel's much fabled startup high tech sector where investment has fallen at a much faster rate than its fallen in startups around the world in terms of investment from venture capital firms in to startups.

[04:45:00]

And that's a big worry for Israel because high tech exports account for about half of all Israeli exports. So if the high tech sector is impacted, that will have a very big impact on the economy as a whole.

Now that said, it's not all doom and gloom. Certainly that's what Benjamin Netanyahu and his Finance Minister Betzalel Smotrich were trying to say yesterday in the wake of this announcement by Moody's. They were saying look, once the dust settles, everyone will see that the Israeli economy is strong. And to be fair OECD reckons that Israel's economy will grow by about 3 percent this year. That's not too shabby compared with other developed markets around the world.

And also there are big investments coming in the gas sector. And just yesterday, we had a big French aerospace and defense company Thales, is buying -- announcing that it is buying an Israeli founded company called Imperva for $3.5 billion.

So it's not all doom and gloom, but this government will be worried for this drumbeat is getting louder and louder as to the potential damage to the economy -- Max.

FOSTER: OK, Elliot, and in terms of -- I mean, this was only the first stage of this wider reform plan. Wasn't it? There are more bills going to Parliament. More bills that are going to go this process. So are we going to, you know -- is there potential for some of these other parts of the reform plan to cause more concern in the economy?

GOTKINE: Well, very much so. I mean, we've seen these protests going on for more than six months. We've seen thousands of reservists saying that they will not serve as a result of just this one part of the government's judicial overhaul. And even though Prime Minister Benjamin Netanyahu in an attempt perhaps to reach out to the opposition again, said that he was open to dialogue and there shouldn't be a problem in reaching agreements ahead of the next kind of legislative onslaught which would be expected around October/November.

The opposition believes that there is no point really in negotiating with this government because it hasn't done so in good faith on this part of the judicial overhaul and therefore in any way Prime Minister Benjamin Netanyahu, according to the opposition leader Yair Lapid, is not really in charge. He's beholden he says to the more extremist elements in his coalition. So, yes, plenty more scope for more laws, for more protests and more potential damage to the economy -- Max.

FOSTER: Elliott -- Elliott in Tel Aviv, thank you very much indeed for that.

Now more than 50 pilot whales have died after being stranded on a remote beach in western Australia. This is video of them gathering on Tuesday before becoming stuck. Officials are working to try to rescue dozens of remaining whales that are still alive. Authorities say they've had hundreds of offers to help from volunteers. It's unclear why the whales became stranded. Residents are being urged to stay off the beach.

Still ahead, Skittles are trying out a limited edition flavor, one that you're more likely to find in sandwich. It's a candy really. Anyway, we'll find out more after the break.

[04:50:00]

(COMMERCIAL BREAK) FOSTER: Spain and Zambia are facing off right now in the Women's World

Cup with the Spaniards taking an early 2-nil lead. They are poised to secure a spot in the knockout round. La Roja could be the second team to arrive there after a very strong showing by Japan. About two hours ago the Japanese comfortably overcame Costa Rica 1-nil. And later today Canada will take on Ireland in Group B.

Two time NBA all-star Jaylen Brown has agreed to the richest contract in league history. An eye-popping $304 million over five years extending his time with the Boston Celtics. The 26-year-old put up some of his career best numbers in the past season and he was named in the all-NBA team which made him eligible for the new contract.

And there is a new development in the saga of French soccer star Kylian Mbappe. His current team Paris Saint-German has granted permission for a Saudi club to talk with the 24-year-old. And they're reportedly offering a record $332 million contract. Now more from CNN's World Sports anchor Don Riddell.

(BEGIN VIDEOTAPE)

DON RIDDELL, CNN WORLD SPORT ANCHOR: Every summer the top football players in the world take a rest. But the excitement around the game never stops and it's transfer news and speculation that continues to fuel the hype. Every summer the dollar amounts go up and up, but this year the numbers being discussed are absolutely ridiculous.

Could it be that the French World Cup winner Kylian Mbappe is off to Saudi Arabia where he will be paid over $700 million? Maybe. So how did we get here? Well Mbappe was already a rising star when he made his debut for Paris Saint-German at the age of 18 back in 2017. He was a world champion with France the next year. Since then, he has won five league titles and numerous cups, but PSG have never won the European cup.

And at times his relationship with PSG and their fans has been rather uneasy. Two years ago when he was yet to sign a new contract, he was heavily linked with a move to Europe's most successful team Real Madrid. And this is what he said to CNN's Becky Anderson back then, she asked if he regretted saying that he wanted to leave.

KYLIAN MBAPPE, PARIS SAINT-GERMAN STRIKER: I don't even know because I was honest. I gave a feeling. I gave what I have in my heart. And I think nobody can say something about it because it is a feeling, it is personal. But of course I'm happy to stay.

RIDDELL: Mbappe would end up playing Real Madrid in the Champions League just a few months after that. And despite continued rumors of a move to the Spanish capital, he did commit himself to Paris with a contract extension in May 2022.

Saying, quote, I'm delighted, I am convinced that here I can continue to grow at a club that provides everything necessary to perform at the highest level.

But now things are really changed. Still no Champions League title. Lionel Messi has just left. And Mbappe has reportedly refused to exercise a contract extension. Meaning that he could leave for nothing next year. PSG have not taken him to Japan on their preseason tour. That would suit Real Madrid if it all works out this way and they could get him in a year's time because they would save hundreds of millions of dollars. But what does Mbappe do in the meantime.

(END VIDEOTAPE)

[04:55:00]

FOSTER: Stories in the spotlight this hour. Messi mania, the Argentine legend led last place Inter Miami to a 4-nil win over Atlanta United in a Leagues Cup's match on Tuesday. Messi scored the first pair of goals and later added an assist. That's after his game winning extra time goal in his debut match next week. Now meanwhile, his $160 Maimi jersey has sold out and won't be available again for months we've told.

A new study finds plant based milk and cow's milk are not always nutritionally equal. Researchers say not all of plant options are fortified to meet various attritional ingredients contained in dairy. The study looked at nutritional labels and ingredients from 23 different plant based milk makers and found only 28 of their 233 products had as much or more protein, vitamin D and calcium as cows milk.

Skittles newest flavor probably won't have you tasting the rainbow. In celebration of National Mustard Day in August, on August 5 in fact. The candy brand has partnered with French's mustard to make its first ever mustard flavored Skittles. You probably won't find in stores though. Those brave enough to try it will have to visit French's mobile stopping in the three U.S. cities including Atlanta, Washington D.C. and New York. There's also an online sweepstakes for a chance to win a mustard Skittles package.

And the plot discuss leader for the next Mega Millions drawing. No one matched the winning numbers on Tuesday. So Friday's Jackpot is now worth an estimated $910 million. Lottery officials say the drawing has only passed $1 billion on four occasions, so this could be the fifth largest Jackpot in Mega Millions history.

Thank you for joining me on CNN Newsroom. Good luck with that. I'm Max Foster in London. "EARLY START" with Christine is next.

[05:00:00]