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CNN International: IDF Says Gaza City is Completely Surrounded; Blinken: Need to Minimize Civilian Casualties in Gaza; Israeli Bombardment of Gaza Intensifies; Speaker Johnson Insisting on IRS Cuts to Pass Israel Deal; Trump Sons Testify at Trial that Threatens Family Business. Aired 4-4:30a ET

Aired November 03, 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 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 been on assignment this week.

And we begin today with the Israel Hamas war. It's Friday, November 3rd, 8:00 a.m. here in London, 10 a.m. in Gaza, where the Israeli military says it now has Gaza City cut off and surrounded. The IDF say the primary goal is to locate and destroy Hamas tunnels and eliminate explosives and other obstacles. Israel says 23 of its soldiers have now died in the Gaza operation.

U.S. Secretary of State Antony Blinken returned to Israel a short time ago and is expected to meet this hour with Prime Minister Benjamin Netanyahu. The secretary says that the U.S. is increasingly concerned by the rising civilian death toll in Gaza, which Palestinian officials say is more than 9,000 people. More than a dozen U.S. Democratic senators are now calling for a short term pause in the fighting, in order to deliver more aid and to focus on getting hostages released. CNN's Scott McLean is covering these angles for us. Scott, what is Blinken hoping to accomplish with this visit? And what message will he be bringing to the region from Biden?

SCOTT MCLEAN, CNN CORRESPONDENT: Yes, we've seen so much focus on hostages before. So much focus on getting aid into Gaza. There were more than 100 trucks that were allowed in yesterday. So it seems like there is some progress being made. Obviously, the hostage negotiations are taking place in the background as well.

But this trip, he says, is primarily focused on making sure that he shows his support for Israel, continues to show American support for Israel. But also tries to send the message that look, Israel needs to be much more conscious of the number of civilian casualties that it has in the strikes, that it is carrying out. He says that as democracies -- as a democracy, Israel has a responsibility to do that. And while Hamas makes it difficult with using civilians as human shields, he says that Israel should try to rise to the occasion.

But look, before he left on the tarmac, he was asked whether Israel was showing restraint. He didn't give a straight answer. Two weeks ago he was asked whether he thought Israel was staying within international law, didn't give a clear answer there either. And the reality is that many Arab, many Middle Eastern states have already made-up their mind on this. They see huge outrage from the West and the U.S. when it comes to the brutal terror attacks committed in Israel. But they don't necessarily see the same kind of outrage when it comes to what's happening in Gaza and the Palestinian lives that are being killed. So he needs to try to flip the script on that a little bit. And you also have just this morning the Emirati Foreign Ministry -- this is a country again, that has been trying to forge closer ties with Israel in recent years -- saying, look, the temperature needs to be turned down here because if it's not, this could escalate into a more regional spillover. And that's when you have extremist groups looking to take advantage, cause more chaos.

NOBILO: And when it comes to the heat of that battle, Israel is claiming progress and its ground incursion. What's the latest?

MCLEAN: Yes. So as you mentioned earlier, they say that they have Gaza City surrounded. Obviously, the Israelis have said precious little if anything beyond that. As to the price -- precise location of their troops, last night we saw there were flares being fired into northern Gaza -- a town called Beit Hanoun, that is very near Gaza. We do have at least one marker on the ground of Israeli troops, and that is at least according to the Palestinian Red Crescent.

They say that al-Quds hospital, the second largest in Gaza, it's located just on the outskirts of Gaza City, they say that Israeli troops were about a kilometer away and firing at the hospital. They say that they actually injured a child and a young man who were outside. There were also strikes nearby -- air strikes nearby the hospital as well. 21 people, they say inside the building were actually in. Injured because of that, because of the glass or things fall falling on them or whatnot.

Israel, we've put those accusations to them specifically. What they've said in the past is that, look, hospitals, they believe are being used to shelter Hamas militants. Al-Quds hospital has plainly denied that. But that is the Israeli accusation and that's why you're seeing these strikes near those hospitals continue.

You're also seeing strikes throughout the rest of Gaza.

[04:05:00]

So while the troops and the tanks are in the north, you are still very much seeing air strikes in the south -- south and central parts of Gaza, the same places that the Israelis have been telling people to evacuate to.

NOBILO: Scott McLean, thank you very much.

MCLEAN: You bet.

NOBILO: Israel says its latest offensive in Gaza is putting pressure on Hamas to release its hostages. The military believes 242 people are still being held since the deadly October the 7th attack. An Israeli spokesperson says they're on a mission to get everyone returned home.

(BEGIN VIDEO CLIP)

EYLON LEVY, ISRAELI GOVERNMENT SPOKESPERSON: Our assessment is that the current ground operation is advancing the conditions to help free our hostages. We've already seen four hostages released under heavy international pressure. We're calling on more international pressure to release the rest of them immediately and unconditionally. But Hamas isn't suddenly going to develop a humanitarian backbone and release the children it abducted out of the kindness of its own heart. We're moving in in order to physically free the hostages and put that pressure on Hamas to release them immediately and unconditionally. And the United States has been very clear that there's no excuse for abducting children and innocent people like that from their beds and holding them hostage in the Gaza Strip.

(END VIDEO CLIP)

NOBILO: In the past few hours, the night sky over northern Gaza has been lit up in a barrage of flares and explosions. The latest assault comes 17 years since Hamas took control of Gaza. Israeli officials say the terror group has spent that time training for war and digging a complicated network of tunnels below ground that you've heard us speak about often. A new propaganda video from Hamas reveals the dangers that Israeli ground troops could be facing as a result. Ed Lavandera has those details.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT (voice over): The firefight on the ground between Israeli soldiers and Hamas fighters has intensified for days, and now Israeli military leaders say its forces have entered Gaza City. Israeli Defense Forces released these video images of soldiers moving through the war-ravaged streets of Gaza.

UNIDENTIFIED MALE (through translator): Our soldiers have been operating in Gaza City for the past few days, surrounding it from several directions, deepening the operation. Our forces are in very significant areas of Gaza City.

LAVANDERA (through translator): Israeli forces have made their way into the northern and central areas of Gaza as well. This is where it says Hamas military leaders are believed to be operating from a sophisticated system of underground tunnels. Israel Defense Force officials say more than 10,000 munitions have been fired into Gaza, striking thousands of targets.

UNIDENTIFIED MALE (through translator): Fighters of the IDF continue to progress in Gaza, holding battles face to face with the Hamas terrorist, deepening the combat.

LAVANDERA (through translator): Hamas released this video of what it says are its fighters emerging from underground tunnels attacking Israeli soldiers inside Gaza. The video does capture the dangerous nature of this ground fight. The military wing of Hamas also says it released this video showing

the moment of an aerial drone dropping munitions on a gathering of Israeli forces in northeast Gaza.

The fighting has taken a deadly toll across the Gaza Strip. Since October 7th, over 9,000 have been killed here, according to Palestinian health officials in the Hamas controlled enclave. Israeli aerial strikes have left massive craters in residential and refugee areas as the military says, it's trying to dismantle Hamas military operations underground. The Israeli military says 20 IDF soldiers have been killed in the Gaza operation. One of those was 20-year-old Rayi Dawi (ph). Dawi's funeral service brought out hundreds of mourners near Jerusalem on Thursday.

(END VIDEOTAPE)

NOBILO: And an update from the IDF which reports an increase in the number of Israeli soldiers killed in Gaza that stands at 23 now.

Sometime today, the leader of the militant group Hezbollah is expected to make his first address since the start of the Hamas Israel War. It's unclear what Hassan Nasrallah may announced, but he's considered a key player and a wild card who could tip the ongoing war into a wider conflict. His recent silence has been unnerving to those worried about regional security.

And adding to the anxiety, the IDF has reported an escalation in cross-border attacks in northern Israel. With increased rocket fire from Hezbollah on Thursday, the Israeli military has been ramping up air strikes in response. And the exchange of fire is now at its highest level since the 2006 war between Israel and Iran backed Hezbollah. The heightened hostilities began shortly after the October 7th Hamas attack on Israel and the subsequent bombardment of Gaza in retaliation.

Ejaz Haider, a senior fellow at the Center for Security Strategy and Policy Research, joins me now from Pakistan. Thank you very much for joining us today, Sir.

EJAZ HAIDER, SENIOR FELLOW, CENTER FOR SECURITY, STRATEGY AND POLICY RESEARCH: Thank you for having me.

[04:10:00]

NOBILO: Antony Blinken, the U.S. Secretary of State, is returning to Israel. We know that the U.S. has at least expressed concern and deterrence for anybody else joining this conflict or for its spilling over to a greater extent. Where do you think the international community is in terms of its anxiety that Hezbollah and other actors will continue to be more involved in this conflict in an increasing the intense way?

HAIDER: I think that's the real danger. A number of analysts and also heads of government and states have actually been talking about it. And we've also seen the northern border hotting up. There have also been missile attacks reportedly from the Houthis in Yemen. A number of other militant groups have also said that they support Hamas and whether they can actually join the war or not is obviously remains to be seen.

But there is definitely in terms of if you look at it from a political strategic level of analysis. This has been a major win for Hamas in the sense that, you know, the idea of Israel actually securing itself by presenting the Palestinians from any normalization and reaching out to the Arab states to do that now lies in ruins. And you know, so we constantly, obviously, because things are happening on the ground. So we're looking at the military operational level of it.

But there is the higher level at which a number of Arab states that had earlier normalized with Israel, or the ones that had normalized through the Abraham Accords are also under tremendous pressure for various reasons, not least because of how the populations look at this, this contest or conflict, if you will, and have recalled their ambassadors. And similarly, Israel has had to withdraw its staff from various missions for security reasons, including from Turkey and Jordan and elsewhere.

NOBILO: Ejaz, this is a very important point to pick up on the broader strategic objectives of Hamas, which I think can be overlooked sometimes. And obviously, it's designated as a terrorist group by many nations. But that doesn't mean that for an attack two years in the planning, there weren't far more specific and sophisticated and global intentions behind the attack.

And can you just give us an overview right now of where Hamas is currently getting support from? Obviously, you mentioned the Houthis. We've been talking about Hezbollah but give us an overview of that.

HAIDER: Well, it's a known fact and you know, even through Austin, which is, you know, available intelligence, not necessarily deep intelligence that Hezbollah has been supported by Iran. They have had contacts with --correction -- Hamas has been supported (INAUDIBLE). Hamas also has had operational and organizational links with Hezbollah. They -- their guarders have also been part of some of the fighting in Syria along with Hezbollah.

So clearly, you know, in terms purely militarily speaking, the picking up best practices from some of the best in the business. And of course you have technology transfers in terms of not just indigenous manufacturer of certain platforms. Like for instance, there's earlier seen rocket propelled grenade launcher that seems to be doing a lot of damage to the Israeli Merkavas and Namer APCs and. And of course, you know, these are things that kind of transfer from one group to another. And they learn in terms of planning, in terms of how to execute those plans. And at the lower level, the military operational, tactical level, Israel is now facing a fight which is going to be close quarters. Which is going to be from rubble to rubble, destroyed buildings to destroyed buildings. And it's something where Israel's technological advantage gets largely diluted. In fact, is also using these sorts of, you know, apparently these commercially available drones, which they are using as direct attack munitions, and they also seem to have done quite a bit of damage to the Israeli forces. NOBILO: Just lastly to you, the U.S. has intelligence that Bashar al- Assad has agreed to send a Russian missile system -- missile defense system to Hezbollah, possibly with the help of, you know, Russian mercenary groups. Where is Russia's involvement in this from what you understand? And what is in their strategic interest?

[04:15:00]

HAIDER: Well, I am not privy, obviously, to this intelligence. It was only the statement about it.

But clearly, I mean, in the sense that with the Russo Ukraine war going on and with the United States and its allies both in the European Union and NATO, essentially creating an anti-Russia bloc. And I -- and I'm not saying this in terms of any value judgment, I'm just simply stating a fact. Obviously, has its in its interest to be part of any, you know, effort which can directly or indirectly hurt the United States and its allies. I mean, it's basic historical common sense. And also, you know, it's common sensical in terms of real politics.

NOBILO: Ejaz Haider, thank you so much for joining us. Really appreciate your thoughts.

HAIDER: Thank you.

NOBILO: We'll have much more now ahead on the Israel Hamas war.

And also, a former cryptocurrency billionaire found guilty of fraud and conspiracy. What his conviction could mean for the future of the cryptocurrency market.

Plus, parts of Italy are seeing flooding as storm -- as a storm impacts the region. The latest on the dangers from the rough weather ahead.

[04:20:00]

(COMMERCIAL BREAK)

NOBILO: The U.S. House of Representatives has adopted a multibillion dollar stand alone aid bill for Israel. But the Senate is refusing to take up the bill and the White House is threatening a veto. CNN's Melanie Zanona reports from the Capitol.

(BEGIN VIDEOTAPE)

MELANIE ZANONA, CNN CAPITOL HILL REPORTER: Well, the House passed a $14 billion aid package for Israel, but they passed it mostly along party lines. The final vote tally was 12 Democrats voted in support of the bill, and two Republicans voted against it. So really an example here of how partisan even a non-partisan issue has become here in Washington. And the reason why Democrats were against this bill is because of the new speaker, Mike Johnson, and the way he decided to put this bill together. First of all, he decided to exclude Ukraine money. That's something

that has been a priority for the White House, but it has become divisive in the House Republican Conference.

And second of all, Johnson decided to include partisan cuts to the IRS as part of this package. He wanted to pay for this measure. He didn't want just a straightforward emergency supplemental, which is really unusual. Typically, those types of bills are not conditioned upon anything. So that is one of the reasons why the White House has issued a veto threat for this bill.

But it's going nowhere in the Democratic controlled Senate, and one Democrat, Jared Moskowitz, who did vote in support of that bill in the House even he was unhappy with how it all came together.

REP. JARED MOSKOWITZ (D-FL): I'm willing to give anybody the benefit of the doubt when they come into a leadership position. But this was it. This was his first full week, first big vote. National security issue for the American people, a national security issue for Israel, our number one ally. And he played politics for it so that he could send out a political mailer.

ZANONA: So the House and Senate really on a collision course here. And meanwhile, the prospects for Ukraine funding are also very much in doubt. Speaker Mike Johnson has said that he would try to pass a Ukraine aid package at some point in the near future, but only if it includes stricter border security measures. Something that is sure to set up a fight with Democrats. And so at this moment, just really uncertain how this is all going to play out.

Melanie Zanona, CNN, Capitol Hill.

(END VIDEOTAPE)

NOBILO: U.S. Treasury Secretary Janet Yellen defended President Biden's opposition to the Israel aid bill. Here's what she told CNN about the conditions laid out by Republicans.

(BEGIN VIDEO CLIP)

JANET YELLEN, U.S. TREASURY SECRETARY: I think it's an irresponsible bill tying support for Israel. Lacking support for Ukraine, which are both vital national security interests. And then tying aid for Israel to what is really an irresponsible proposal to cut funding for our Internal Revenue Service.

(END VIDEO CLIP)

NOBILO: Donald Trump's oldest daughter is expected to take the stand in his fraud trial next week after a New York court denied her request to postpone her court appearance. Ivanka Trump's attorney argued that her client would suffer undue hardship if forced to travel to New York from her home in Florida in the middle of a school week. Ivanka's brothers took the stand on Thursday. Donald Junior and Eric Trump placed the blame on others for financial statements at the center of this case. CNN's Brynn Gingras has the details. (BEGIN VIDEOTAPE)

BRYNN GINGRAS, CNN CORRESPONDENT (voice-over): Former President Donald Trump's two eldest sons, in court with smiles and thumbs up for the cameras. Eric and Donald Trump Jr. testifying in New York in a civil fraud trial, accused, along with their father, of falsely inflating the value of properties, like Trump's previous own hotel in Washington, Trump Tower in Chicago, and their Miami resort, by hundreds of millions of dollars.

DONALD TRUMP JR., DEFENDANT: Before even having a day in court, I'm apparently guilty of fraud for relying on my accountant, to do, wait for it, accounting.

GINGRAS (voice-over): The brothers, executive vice presidents at the Trump Organization, where they worked most of their adult lives, took over the company when Donald Trump was elected president in 2016.

DONALD TRUMP, FORMER U.S. PRESIDENT: Don and Eric are going to be running the company.

GINGRAS (voice-over): Donald Trump Jr. testifying he still believes the financial statements submitted in the case were, quote, materially correct, end quote. Though Judge Arthur Engoron already ruled the evaluations were false.

Both brothers saying they did not prepare the financial statements for bank loans.

I never worked on the statement of financial conditions, Eric Trump said. I didn't know anything about it really, until this case came into fruition.

[04:25:00]

When pressed by prosecutors in a tense exchange, Eric acknowledged emails from a decade ago appeared to show that he knew about those very financial statements.

So you did know about your father's annual financial statement, as of August 20, 2013, didn't you? The prosecutor asked. It appears that way, yes, Eric Trump said.

Trump Jr. told the court he relied on accounting and legal teams to assure him the documents were correct when he signed them.

I'm fine with a bank relying on that information, he testified. I don't know that I intended for them to do anything. I'm signing off on it.

TRUMP JR.: The banks in question made hundreds of millions of dollars. I mean, think about this, right? They are not claiming that they are victims. They are not saying that they were misled.

GINGRAS (voice-over): Trump Jr. said he did in fact check the value of properties, including his father's apartment, which the attorney general alleges was described as more than three times larger in square feet than it actually is. The New York attorney general says the fraud got the Trumps better loan and insurance policy terms.

LETITIA JAMES, NEW YORK ATTORNEY GENERAL: The evidence is clear, and that is he inflated his statements of financial interests to enrich himself and his family.

GINGRAS (voice-over): It's a case former President Trump called fake, and formally discredited.

TRUMP: This trial is a disgrace. It should have never been brought.

GINGRAS (voice-over): If the judge ruled against the Trumps, they could be forced to pay back millions, and lose their business license in the state.

GINGRAS: Another tense exchange at the end of court, this one between the judge and Trump's defense lawyer, Christopher Kise. The judge, saying Kise made a comment that was misogynistic toward his court clerk and threatened to extend a gag order that's against the former president to the defense team. Kise defended himself and reiterated the fact that he thinks that this clerk is playing an unfair role in this trial.

Now court picks back up on Friday with Eric Trump back on the stand and the former president under oath on Monday, with Ivanka Trump possibly also taking the stand sometime next week.

Brynn Gingras, CNN, New York.

(END VIDEOTAPE)

NOBILO: A jury has found former billionaire Sam Bankman-Fried guilty for his role in the collapse of crypto exchange FTX. Bankman-Fried was convicted on seven counts of fraud and conspiracy, including stealing billions of dollars from accounts belonging to customers of FTX. The trial has been closely watched by regulators, investors and the crypto community at large for signs of a potential larger crackdown on the largely unregulated crypto market.

(BEGIN VIDEO CLIP)

DAMIAN WILLIAMS, U.S. ATTORNEY: The cryptocurrency industry might be new. The players like Sam Bankman-Fried might be new. But this kind of fraud, this kind of corruption is as old as time. And we have no patience for it.

(END VIDEO CLIP)

NOBILO: The collapse of FTX fueled a panic in the trillion-dollar crypto industry and left an estimated 1 million customers facing potential losses. Sentencing is set for March of 2024.

And much more to come for you on CNN after a short break. When we come back, we'll be speaking to a doctor working in Gaza about the situation on the ground there. So do stay with us to hear that.