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Blinken Arrives In Ukraine To Reaffirm It Has American Support; Georgia Lawmakers Pass "Foreign Agent" Law, Defying Protests; Biden Hikes Tariffs On Certain Imports From China By $18 Billion; IDF Claims In Struck U.N. School Used By Hamas In Gaza; Michael Cohen Cross- Examination At Trump Trial Begins. Aired 1-2a ET
Aired May 15, 2024 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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JOHN VAUSE, CNN ANCHOR: Hello from Studio H in Atlanta, I'm John Vause. Ahead here on CNN Newsroom.
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ANTONY BLINKEN, U.S. SECRETARY OF STATE: I have come to Ukraine with a message. You are not alone.
(END VIDEO CLIP)
VAUSE: Well, not now and for how long? The U.S. secretary safe travels to Ukraine, as U.S. military assistance slowly reaches Ukrainian troops on the frontlines.
Hundreds of mass police clashed with protesters outside Georgia's Parliament until lawmakers approve a Kremlin style foreign influence law, which critics say will be used to crack down on free speech.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. PRESIDENT: Not competing. It's not competition. It's cheating.
(END VIDEO CLIP)
VAUSE: And the Biden administration hits Chinese made electric vehicles with a 100 percent tariff, increasing the risk of a trade war with Beijing.
UNIDENTIFIED MALE: Live from Atlanta. This is CNN Newsroom with John Vause.
VAUSE: We begin with recent gains by Russian forces in the north of Ukraine which has been repeatedly hit from the air, including with glide bombs, which use a guidance system and wings to glide for extended distances. The bombs are launched from Russian airspace but Ukrainian air defense
systems are incapable of intercepting glide bombs. But U.S. anti- aircraft weapons can but cannot be used by Ukraine due to restrictions imposed by the White House.
Authorities in Kharkiv say at least 21 people were wounded, including three children in one glide bomb attack. Apartment blocks, the school, shopping center, other buildings all damaged in the strike. Thousands have been evacuated Kharkiv recent days as Russian forces ramp up cross border attacks, seizing towns and small villages near the northern front lines.
And the U.S. Secretary of State Antony Blinken continues his visit to keep reaffirming Washington's support after $60 billion in military assistance was stalled for months by Republicans in Congress.
(BEGIN VIDEO CLIP)
BLINKEN: I have come to Ukraine with a message. You are not alone. The United States has been by your side from day one. We are with you today. And we will stay by your side until Ukraine security. Its sovereignty. Its ability to choose its own path is guaranteed.
(END VIDEO CLIP)
VAUSE: In the immediate short term, Ukraine's president says more artillery ammunition and missiles are needed urgently from allies with Russian forces now retaking territory, which Ukraine liberated back in 2022. CNN's Nick Paton Walsh reports.
(BEGIN VIDEOTAPE)
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Important to say we don't always have full transparency about when and where U.S. weapons get delivered for obvious reasons. But it does look like weeks till they really start feeling the benefit of that long delayed $61 billion held up by a dysfunctional Republican Congress.
That is the reason why the Russians are seeing success that north of the second city in Ukraine, Kharkiv. This is essentially you might call it a third invasion, a completely new prong of attack back into areas that Russia was kicked out of in the end of 2022.
They're moving fast, they clearly have better resources, better ammunition, and clearly to the Ukrainians failed to build defenses there but also don't have the artillery you'd normally rely upon to stop an invading force like this Russian movement here.
They claim to have taken nine villages off the Ukrainians, and they're pushing towards an important one called Liberty where if they got into that, while they might be able to show the second largest city Kharkiv intensely taking the people there, back to the dark days of 2022, their daily life was interrupted by often random Russian shelling.
So, it is a definitely a stark moment here where despite the very positive noises from Secretary Blinken in Kyiv.
Playing guitar they're almost sounding like you hadn't necessarily felt the severity of exactly what's happening north of Kharkiv, it's really a reflection on the ground of quite how slow that aid has been. We've seen morale deteriorate here over the past five or six months because that money was held up. Well, now we're seeing the Russians move over land because of that delay.
(END VIDEO CLIP)
VAUSE: Earlier I spoke with Matthew Schmidt, Associate Professor of National Security at the University of New Haven. He talks about the types of support now being provided to Ukraine with the latest military aid from the US.
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MATTHEW SCHMIDT, ASSOCIATE PROFESSOR OF NATIONAL SECURITY AT THE UNIVERSITY OF NEW HAVEN: So they're in the background our bilateral agreements that are being worked out right now.
[01:05:00]
They're similar to the one with the United Kingdom that's already been signed. And they specify specific types of weapons, specific types of training, timelines for these sorts of things. Even emergency responses showed Russia reinvade at some future points.
And these kinds of things are specific. And they're designed to have the force of treaties in order to draw in American support and commit America to support Ukraine, you know, beyond any particular administration.
VAUSE: So he's a little worn out from anti-Blinken and the hey, we're back speech, which he delivered in Kyiv, listen to this.
BLINKEN: Some Ukrainians may be wondering whether you can count on America to sustain its commitment. The $60 billion aid package that was approved by our Congress with overwhelming support across both political parties, in both houses of Congress, I think demonstrates that you can.
VAUSE: It's a little disingenuous to use a funding bill with Republicans in Congress delayed for months while playing petty politics as an example of bipartisan support for Ukraine.
SCHMIDT: I understand what you're saying, but I would think that actually no, right there was overwhelming support. But the system allows for a small and vocal minority to up end that overwhelming majority, which is what happened.
And he's emphasizing here, of course, the moral support in the political system, while deemphasizing the fact that it's pretty easy to obstruct that moral support from actually delivering.
(END VIDEO CLIP) VAUSE: Our thanks to Matthew Schmidt for that. Now, mass police have clashed with thousands of protesters outside George's parliament, are the largest demonstrations the former Soviet republic has seen since gaining independence.
For weeks thousands of protesters across the country, a foreign agents bill which was passed by parliament on Tuesday. This new law will require organizations which received more than 20 percent of funding from abroad to register as foreign agents or face massive fines.
Many believe it's an attempt by Parliament to move closer to Moscow and scuffles broke out in Parliament while the bill was under debate. It did pass, as we say now goes to the president who says she will veto it. But Parliament can override that veto with a simple majority.
But George's presidents focusing on as Christiane Amanpour about this, and whether this bill will harm Georgia's chances of joining the European Union.
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SALOME ZOURABICHVILI, GEORGIAN PRESIDENT: It is critical because as you know, Georgia has received the candidate status to the European Union last December, and was on its way to have the opening of negotiations at Asian negotiations by the end of the year.
So it's very middle point, that there is this new pressure, the reintroduction of this Russian law, because it's nothing else but a Russian law, and many other laws that are very disturbing. And that take us away from the recommendations of the European Commission, and from my European past, in general.
The message that we're seeing today, in the streets or the streets a way to treat very peaceful protesters is a very Russian way. It's a way of intimidation of trying to stop the protest and to stop people to say that they want their European passback.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: President Zourabichvili, I just wondered, because I think a lot of people will remember that something very similar happened in Ukraine back in 2013. The overwhelming majority of people wanted their passage towards, you know, partnership with the EU, while the Kremlin back President of Ukraine basically said no. And that caused, you know, huge protests, which eventually led to where we are today.
Do you see that danger as well? Do you see Ukraine caught in a situation that could lead to sorry, Georgia caught in a similar situation?
ZOURABICHVILI: Well, I think that it's not -- it's very similar methods, because that's the way Russia behaves, and governments that are getting closer to Russia behave. But we are in very different situations. We've gone through our maiden match earlier.
We have gone through the same process and we are further down the road. There is here, population that has done so many tests, and as resisted is a very peaceful demonstration. And we have elections, and among the leading the pro-European front. In those elections that will be a kind of referendum.
(END VIDEO CLIP)
VAUSE: The White House has weighed in on this thing. It's deeply troubled by Georgia's foreign agent law, well as Georgia's government's move closer to Moscow.
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KARINE JEAN-PIERRE, WHITE HOUSE PRESS SECRETARY: We have been outspoken about our concerns with the legislation which runs counter to democratic values. And would move Georgia further away from the values of the European Union and let's not forget also NATO.
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We will see the parliament what the parliament does. But if this legislation passes, it will compel us to fundamentally reassess our relationship with Georgia.
(END VIDEO CLIP)
VAUSE: CNN's Clare Sebastian has more now on the events leading up to this pivotal moment for Georgia.
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CLARE SEBASTIAN, CNN CORRESPONDENT (voice-over): Storming the barricades, protesters in the Georgian Capitol refusing to accept their weeks long battle could be lost.
UNIDENTIFIED FEMALE: They can scare us that they can do anything to make us go away. We are going to stay here and fight.
UNDIENTIFIED FEMALE: We're not direction we're not balanced. We will not allow anyone to bring us as foreign agents. We will resist.
SEBASTIAN (voice-over): Purchases face down a wall of riot police pushing them back just hours after opposition and government faced off in Parliament.
ANA TSITLIDZE, GEORGIAN MEMBER OF PARLIAMENT, UNITED NATIONAL MOVEMENT (through translator): You are the Russian regime. You are the legitimate Russian regime.
EKA SEPHASHVILI, GEORGIAN MEMBER OF PARLIAMENT, GEORGIAN DREAM (through translator): It's double standards and the hypocrisy of the opposition.
SEBASTIAN (voice-over): Georgia's pro-European majority has tasted success scenes like this last year forced the government to scrap the same so called foreign agent bill, seen here as a replica of a repressive Russian law and a sign of Moscow's growing influence in this small post-Soviet state. Then in March barely three months after gaining EU candidate status,
the Georgian government revived the law. In a rare appearance in late April, the ruling party's honorary leader and most powerful driving force lashing out the West.
BIDZINA IVANISHVILI, HONONARY CHAIRMAN GEORGIAN DREAM (through translator): Despite the promises of the 2008 Bucharest Summit, Georgia and Ukraine have not been accepted into NATO and have been left out to dry. All those decisions are made by the global party of war.
SEBASTIAN (voice-over): As protesters grew more determined the police response escalated. Violence widely condemned by the European Union. In this shocking attack on May first, opposition leader Levan Khabeishvili says he was deliberately targeted, his bruises still visible.
LEVAN KHABEISHVILI, GEORGIAN OPPOSITION LEADER, UNITED NATIONAL MOVEMENT (through translator): They did not get what they wanted from him. They were filming to upload the video afterwards and to show the opposition leader in a state that would discredit me.
SEBASTIAN (voice-over): And violence not the only means of intimidation. Transparency International says these posters of its local Executive Director appeared a few days ago outside its offices and those of other NGOs. The text reads "Traitor and Grant Guzzler."
EKA GIGAURI, EXECUTIVE DIRECTOR, TRANSPARENCY INTERNATIONAL: You are under the attack all the time so the governmental officials and even the prime minister would organize the press conference where they will single you out.
SEBASTIAN (voice-over): Still, the drumbeat of opposition in Georgia grows louder. This is a country at a crossroads. You making it clear this bill becomes law future membership is it serious risk. Clare Sebastian, CNN, London.
(END VIDEOTAPE)
VAUSE: Well, despite threats from President Biden to withhold offensive weapons to Israel, sources tell CNN a new $1 billion arms deal for Israel is now in the works which would include the sale of tank ammunition, tactical vehicles and motor routes.
According to one source talks are in the very early stage, with no word yet on when Congress would be notified to approve the deal.
The Israeli military says more than 100 terror targets across Gaza have been hit on Monday from a four-day extended operation in the Jabalya refugee camp near Gaza City to Rafah in the South. Israel claims several armed terrorist cells close to the Rafah crossing have also been eliminated. Still with the ongoing operations, the U.N. Secretary General is calling for an immediate humanitarian ceasefire. Now from his spokesperson.
(BEGIN VIDEO CLIP) FARHAN HAQ, DEPUTY SPOKESPERSON FOR U.N. SECRETARY-GENERAL: The Secretary General is appalled by the escalation of military activity in and around Rafah by the Israeli Defense Forces. These developments are further impeding humanitarian access and worsening an already dire situation.
At the same time, Hamas goes on firing rockets indiscriminately. Civilians must be respected and protected at all times in Rafah and elsewhere in Gaza. For people in Gaza nowhere is safe now.
(END VIDEO CLIP)
VAUSE: Israel also claimed that the mass war room embedded in a U.S. -- a U.N. operated School in Central Gaza has been hit, claiming it was being used by Hamas commanders. U.N. though it says it's unable to confirm that claim by the IDF.
Meantime, two Israeli airstrikes in a refugee camp in the same area, killing at least 40 people among them nine children. CNN's Paula Hancocks has details. Warning images you're about to see are disturbing.
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PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): Dazed and bloodied. A young boy is pulled from the rubble of the four storey building.
[01:15:00]
Others remain trapped under slabs of concrete after an Israeli airstrike hit this residential building in the early hours of Tuesday while people were sleeping. This mother finds her son being carried away by rescue crews. She throws herself at his lifeless body.
More than 100 displaced people were believed to be sheltering here in Nuseirat in central Gaza, entire families now in tune to beneath the concrete debris.
This man says my children, girls and boys are under the rubble. My wife, my father, we were targeted while they slept. He continues his desperate search for his family. Another man calls out his brother's name. He says he was sheltering here with his wife and four children displaced for a fourth time, this time from Rafah.
This woman says my brother arrived from Rafah three days ago after being forcibly displaced. We don't know where he is. His wife, his five children, they didn't have any connections to anyone.
This is how Gazans are forced to search for their loved ones little equipment using their bare hands against the constant backdrop of Israeli drones overhead. Another Israeli strike at a deer by UNRWA school calls the fire which engulf the buildings there to the displaced became the victims. U.N. staff collect human remains from the schoolyard.
The daily search for a safety that does not exist continues. As hundreds of thousands leave refer moved on yet again by the Israeli military. Some setting up tents in cleared areas, others returning to what's left of their homes.
We are returning to our destroyed homes in Khan Younis, this man says, where there's no shelter or basic necessities, no water or electricity or even the house to shelter.
For the residents of Gaza, it is a constant battle to find the next meal, clean water and a place to sleep, and a desperate hope to survive the night. Paula Hancocks, CNN Abu Dhabi.
(END VIDEOTAPE)
VAUSE: Well, let the cross examination begin. When we come back, defense lawyers for Donald Trump out the gate swinging to get their chance to take down Michael Cohen's, star witness in the hush money trial.
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VAUSE: Defense attorneys came out swinging on the first day of cross examination of Michael Kohn, star witness in Donald Trump's hush money trial in New York. They tried to portray Trump's former lawyer and fixer as a man filled with hate obsessed with his former boss hell bent on revenge. Before that prosecution walked home through his decision to stop being loyal to Trump six years ago, and, quote, Tell the truth. CNN's Kara Scannell has details.
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KARA SCANNELL, CNN CORRESPONDENT (voice-over): Trump's ex lawyer Michael Cohen back on the stand, this time facing an aggressive cross- examination by former President Donald Trump's attorney as his criminal trial continued on Tuesday.
Trump's attorney Todd Blanche in rapid fire questioning that jumped around from year to year tried to paint Cohen as an unreliable witness attacking his testimony and showcasing his hatred for Trump.
MICHAEL COHEN, FORMER TRUMP FIXER AND ATTORNEY: My credibility should not be in question.
SCANNELL (voice-over): Blanche asked Cohen, do you want to see President Trump convicted in this case? Cohen responded, sure. Blanche also highlighted disparaging remarks Cohen has made about Trump on his TikTok page during the trial like calling Trump a dictator D-bag, even though Cohen confirmed prosecutors asked him to stop publicly talking about the case.
COHEN: I should have done something. But I didn't.
SCANNELL (voice-over): Blanche pointed to merchandise Cohen sells on his TikTok and podcasts websites, including a mug that says send him to the big house, not the White House and a T-shirt depicting Trump in an orange jumpsuit.
Blanche question Cowen if you talk to the media, including CNN last year about the case despite the district attorney's office asking him not to.
COHEN: Most recently they asked for my cell phones because they want to be able to extract from it the voice recordings that I had had with Keith Davidson, former attorney to Stormy Daniels.
SCANNELL (voice-over): Blanche went through positive statements Cohen made about Trump during his decade working for him. He asked Cohen if he was obsessed with Trump. Cohen replied, I don't know if I would characterize the word obsessed. I admired him tremendously.
Cohen added that at that time I was knee deep into the cult of Donald Trump. Blanche suggesting Cohen changed his view on Trump to help his own legal problems.
COHEN: He needs to be held accountable.
SCANNELL: Earlier Tuesday during the end of direct examination, prosecutors zeroed in on the repayments at the crux of the criminal charges against Trump.
DONALD TRUMP, FORMER U.S. PRESIDENT: This is the old case. Are you allowed to call illegal expensively.
SCANNELL (voice-over): Cohen testified it began with the 2017 Oval Office meeting with Trump where he said they discussed how he would be reimbursed for the $130,000 he paid out of pocket to Stormy Daniels, despite Cohen saying he did minimal work for Trump in 2017. Going month by month he outlined sending made up invoices and receiving checks totaling $420,000, which he said included the hush money reimbursement, other fees and a bonus.
Prosecutor showed one of the $135,000 checks signed by Trump and asked were any of those checks, in fact for work during the months described in those check stubs? No, ma'am, Cohen replied. Cohen testified to this in front of Congress in 2019.
COHEN: This $135,000 check was one of 11 Check installments that was paid throughout the year while he was president. The president of the United States thus wrote a personal check for the payment of hush money as part of a criminal scheme to violate campaign finance laws.
SCANNELL: During cross examination, the jurors heads were bobbing back and forth between Todd Blanche Trump's lawyer and Michael Cohen, who was answering those questions. There is no court on Wednesday, but Blanche said that his cross examination of Cohen will continue and is likely to last all day on Thursday. Prosecutors said that Cohen is the last witness they will call so the question is does Donald Trump put on a defense. Kara Scannell, CNN, New York.
(END VIDEOTAPE)
VAUSE: Well, CNN legal analyst and former White House Ethics czar Norm Eisen was in court Tuesday. He told me Trump's defense team failed to lend a blue on Cohen, who seemed unflappable.
(BEGIN VIDEO CLIP)
NORM EISEN, CNN LEGAL ANALYST: The testimony of Cohen on direct had put the prosecution over the line of proof beyond a reasonable doubt. Blanche had to land knockout punches today, and he repeatedly swung and missed.
The problem was that Michael Cohen was a calm, well prepared witness who would not take the bait. He was very credible on direct and he maintained that persona with short answers, telling the truth. I thought he bonded with the jury and Blanche did not -- Blanche got off to a very rough start. And he really never budged Cohen scored a point or two here and there but not what he needed to do, but it's early days yet. We're going to be back on Thursday.
[01:25:00]
VAUSE: Well also during their cross examination, Blanche pointed to financial gain as this motivating factor possible for Cohen, Cohen sales anti-Trump merchandise like the T-shirt he wore just last week during a podcast, which shows Donald Trump behind bars sending to the big house, not the White House has to captured. And he's doing this despite pleas from the prosecution not to do so.
So I'm just wondering, you can see the jury you see you said it just before the he seemed to bond with the jury. So what was their reaction to all these questions? Did anything actually stick? Do you think?
EISEN: John, today was about a rule that we use usually see in presidential politics, not in court? The expectations game, you know, before every big presidential debate, both candidates, handlers are trying to depress expectations. Well, today the expectations were very low for Michael Cohen.
Throughout this trial, every witness has said something negative about Michael Cohen. The jury expected to meet someone very different than the soft spoken candid, remorseful, and I think, credible witness that they got.
Meanwhile, Blanche was expected to launch a devastating cross examination, and when he swung and missed again and again, he was the victim of his high expectations.
(END VIDEO CLIP)
VAUSE: Well, Germany, a far right politician has been fined $14,000 for using bad Nazi slogans. CNN (INAUDIBLE) reports a leader of the Alternative for Germany party or AfD use the slogans at a rally in May 2021. Allegedly repeated those slogans in December of 2023, despite facing criminal charges for the first offense.
Just a day earlier, another court ruled the AfD party is officially suspected of extremism. This decision allows German intelligence services to place the AfD under surveillance. Well, President Biden hikes tariffs on a range of Chinese goods, when
we come back, how this could impact American consumers as well as workers. What does it mean for China as well live report from Beijing in a moment.
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VAUSE: Welcome back, I'm John Vause. You're watching CNN Newsroom. The U.S. has increased tariffs on Chinese made electric vehicles to 100 percent. The largest of all tariff increases on $18 billion of Chinese imports.
U.S. President Joe Biden made the announcement Tuesday. He says he's expecting retaliation from Beijing. One hour from CNN's MJ Lee reporting in from the White House.
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MJ LEE, CNN SENIOR WHITE HOUSE CORRESPONDENT: President Biden announcing on Tuesday the raising of tariffs on some $18 billion worth of Chinese imports on a wide range of goods, including semiconductors, solar cells, electric vehicles, and critical minerals all of this going towards the broader effort that he says his administration is making to try to protect and shore up American industries from what he says are rampant and unfair business practices coming out of Beijing.
Now the biggest increase that we're seeing will be on Chinese electric vehicles. Those tariffs are set to quadruple and this is to counter according to the president heavy tariffs that Beijing has placed on U.S. car imports and also to try to bolster the U.S. auto industry, especially at a critical moment of transition for the industry as they are moving towards cleaner energy technology.
Now Beijing, we saw gave a swift response. A spokesperson for the Chinese foreign ministry saying that China will take all necessary actions to protect its legitimate rights.
We saw President Biden saying in an interview that he fully expects that Beijing will retaliate in some way. Take a listen.
JOE BIDEN, PRESIDENT OF THE UNITED STATES: I'm sure China will talk a lot about it. But the fact is China already is what you might carry way over -- way over your skis on this.
What they'll do, I don't think will lead to any international conflict or anything like that. But I think they'll probably try to figure out how they can raise tariffs, maybe on products that are unrelated.
LEE: And to zoom out a little bit for context here, former president Donald Trump, when he announced a set of sweeping tariffs on Chinese imports when he was president, this was something that President Biden at the time was critical of.
So the announcement that we are seeing today from this administration is not only keeping those former tariffs in place, but actually expanding on that program, and of course, the fact that we are just months away from the November presidential elections means that politics are definitely at play.
This is a president who is campaigning a lot in some of these critical battle from Mideastern states here like Pennsylvania, like Michigan. And when he travels to states like that, he wants to be able to tout a resurgence in the American auto industry.
And he is certainly expected to point to an announcement like todays to say that all of that goes towards the goal of protecting the American auto industry and the American manufacturing industry as well.
MJ Lee, CNN -- at the White House.
(END VIDEOTAPE)
VAUSE: Live to Beijing and joining us now is Steven Jiang. So Steven, you know, a couple of things. The 100 percent tariff on Chinese-made electric vehicles seems preemptive given the fact that there are no Chinese electric vehicles really for sale in the United States. And $18 billion in the grand scheme of things isn't a whole lot.
But clearly, the concern here is that this could be the start of what will be a trade war. Certainly, joe Biden was expecting something similar to that.
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: That's right, and you heard just now M.J. touched on some of these points and I think the Chinese officials, (INAUDIBLE) and analysts I talked to. They are very much keenly aware of the U.S. domestic power, domestic politics in an election year.
So the question right now is aside from their predictable rhetoric, are they going to take that into consideration when they make their next move? Their promised and expected retaliation against these new tariffs.
And it's worth noting, even though these numbers, $18 billion, a tripling, quadrupling of current tariff rates may seem very eye- catching, but on a bigger scheme, this is only 4 percent of all Chinese imports into the U.S.
So we may not see an immediate major impact on bilateral trade. The deeper concern from Beijing, again, as M.J. mentioned, there's always that comparison between Trump and Biden and the Chinese is always more worried about Biden's attempt trying to form a united front against China versus Trump's going it alone strategy.
So the deeper concern is are other western economies, especially fellow G7 members, going to follow suit and impose something similar.
And that potentially will have more impact because for example, the Chinese EV industry has a much bigger footprint in the European market. And the G7 summit, of course, is coming up in June. So that's something everybody is watching very closely.
And of course, from Beijing's perspective, these new tariffs are not being viewed in a vacuum. They have seen serious moves by Biden since he met Xi Jinping last November outside of San Francisco.
The U.S. has adding -- has been adding more Chinese institutions and companies on its entity list because of alleged ties with the Russian defense industrial base.
[01:34:52]
JIANG: And they've also launched more export controls targeting Chinese -- companies like Huawei.
Now of course, these tariffs from Beijing's perspective, is this a pattern? And so that's why there are already some people saying this could jeopardize the whole slow stabilization of bilateral relationship, especially if Chinese leader Xi Jinping decides he doesn't want his country to be viewed as a U.S. punching bag anymore, John.
VAUSE: Steven, thank you. Steven Jiang live for us there in Beijing. Good to see you. Thank you.
Flash floods triggered by torrential rain has claimed more than 50 lives in Indonesia. The floods have also triggered cold lava flows from a nearby volcano forcing nearly 3,400 residents to evacuate.
Cold lava is a mixture of volcanic material and pebbles flowing down from volcan slopes during wet weather.
More details now from CNN's Lynda Kinkade.
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LYNDA KINKADE, CNN CORRESPONDENT: Rosa Yolanda sits on a hospital bed. She's covered in constant bruises head to toe. The recent college graduate tells Reuters she was at home Saturday texting her sister about the heavy rain outside. Moments later, she heard a thundering noise.
ROSA YOLANDA, FLOOD SURVIVOR (through translator): Suddenly the lights went out and the water rushed in. I didn't have time to stand up and I no longer had time to run and was just washed away by the flood.
KINKADE: Flash floods triggered by torrential rains in Indonesia's West Sumatra province have left dozens dead and missing.
Mudslides and cold lava flow from volcanic eruptions, a mixture of rock, sand, water in volcanic ash adding to the level of devastation, inundating roads and sweeping away homes, trapping victims, or sending them into nearby rivers.
YOLANDA: I got stuck on the road that was full of wooden materials and debris from the houses that were washed away. I got trapped by the pile of debris and the water was not flowing
anymore and I hit the rubble and then tried to get my head out of the water because I could feel the water flow was receding.
KINKADE: Thousands of people have been evacuated from their flooded homes as rescuers recover bodies and dig through the damage.
While Rosa Yolanda recovers in hospital, others remain lost in the rubble.
YOLANDA: Mom, thank God, is safe while they are still searching for my dad.
KINKADE: With heavy rains forecast throughout the week, the dire search for survivors continues. This, the latest flood catastrophe as unprecedented rainfall triggers flash floods around the world.
Lynda Kinkade, CNN.
(END VIDEOTAPE)
VAUSE: Next up here on CNN NEWSROOM, Roaring Kitty back. So too, it seems the meme stock craze where shares of failing (ph) companies suddenly surged driven by sentiment on social media and a whole bunch of other factors. We'll try to figure (ph) all that in a moment.
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VAUSE: Shares of video game retailer GameStop once again skyrocketing after the social media return of the trader known as Roaring Kitty, who'd been silent on Twitter, now X, for three years.
On Sunday though he was back posting a simple image of a cartoon gamer. That's all it took to send GameStop shares through the roof.
But GameStop is not alone. These failing companies are also seeing huge gains, but mostly temporary not because of their financial fundamentals, but rather because a reawakening of the so-called meme stock craze, where investors rally around a company and generate online buzz with the intention of sticking it to the short sellers and hedge fund managers who bet against the stock.
In some ways, it mirrors what's happening with Trump Media. Supporters of the former U.S. president have pumped up the share price, even though the company itself has been hemorrhaging money and is a bad buy.
Live now to San Francisco Ryan Patel, senior fellow at the Drucker School of Management at Claremont Graduate University. Welcome, it's been a while.
RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT, CLAREMONT GRADUATE UNIVERSITY: It has John. VAUSE: Thanks for being with us. Now, two years -- three years after
the meme stock craze of 2021 came the movie -- it was two years after 2021, came the movie, "Dumb Money, Dumb Me", about the meme stock craze. It features the underdog, "Roaring Kitty against the hedge fund managers.
Here's a clip.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: How much did we make today?
UNIDENTIFIED MALE: 5 million?
UNIDENTIFIED FEMALE: How much did we lose today?
UNIDENTIFIED MALE: 1 billion.
UNIDENTIFIED FEMALE: And yesterday?
UNIDENTIFIED MALE: 4 million.
UNIDENTIFIED FEMALE: And yesterday.
UNIDENTIFIED MALE: A billion.
(END VIDEO CLIP)
VAUSE: Is that a fairly accurate representation that meme stock trading is where the little guy gets rich and the only victims are the short sellers or hedge fund managers.
PATEL: On day one, John, what we, what we don't see is yes, meme stocks allow you to potentially get that rich.
But what they don't in the other side of the picture is that, you know, they drop as fast as they gain because there is no fundamentals behind it.
And unfortunately, John, I -- this is a message where hopefully some people listen to this. This is not the time to put all your savings and put into these kind of stocks because you don't know what is going to go on. And you should be looking at investments that are a little bit different than just that. But the downside of this is it goes up and it goes back down.
And John, if you've got $100 from me, will you put it in GameStop?
VAUSE: Maybe. It's like I wasn't trying (ph) for a while as everyone knows. I don't go putting money in the Chinese share market or stock market it's like going to the casino (ph). If you put it in, maybe you win, maybe you don't.
And that's kind of the same thing here, right.
PATEL: No. It's not. I mean yes and no. I mean these are still -- hold on, John, these are stocks that have no business doing what the valuation that they have right now, right?
I mean, that's -- that's what it's being told and the return is out there and they're trading at a multiple that, you know, financially doesn't make sense.
VAUSE: But you can say the same thing about the Chinese stock market, you know, a couple of years ago. So it's a little bit better now, but it's actually back in the day. It was like a casino. You roll the dice and see how you go.
But the fun continues. The meme stock craze continues on Monday. And on Tuesday, (AUDIO GAP) what these (INAUDIBLE) are doing, correct me if I'm wrong, is not illegal. It does seem like a form of insider trading to me.
You know, the big losers are just simply the short sellers and the resurgence in trading is way down compared to what it was in 2021.
Net inflows from self-directed investors into GameStop on Monday total around $16 million compared with the peak of more than $87 million January 27, 2021.
So are there any indications that meme stock trading will not just fade away like it did back in 2021.
PATEL: I think so. I mean, when 2021 came, let's be -- the real Wall Street bets (ph) forum was seeking to squeeze the hedge funds on their short positions. It was super clear that's what they're doing.
I think for right now, I'm not saying it's not clear, but it doesn't seem like it has that longstanding aspect to it behind as well.
And so as it fades over time, these, these bets are not long-term bets John, right. They have to take a gain of those who are buying this. And this is not illegal. It's online community -- online Internet communities come together and say, let's all go buy this. So they all go buy this.
But what happens when they decide to sell John and they all sell together? What happens? Prices drop.
VAUSE: Someone has pay -- yes.
PATEL: Somebody has to pay and usually it's the people in the middle that get caught unfortunately, who come at the end of now it looks at this segment and go, once you go buy tomorrow.
Now look at the fundamentals of what is done. I think GameStop's up -- I don't know -- 300 percent in the month. And so on.
And so you've got to really understand what you're putting your money into and what the risk is.
VAUSE: Well, a good segue to Trump Media because if ever there was a company perfect for meme stock trading. It is Trump Media.
Trump supporters and other speculative traders pumped up the stock, not for its extraordinary lousy fundamentals. This is a CNN analysis -- but for a voter of support for the former president's campaign, even a barometer of his winning chances.
[01:44:52]
VAUSE: The stock, which has surged nearly 200 percent this year has been extremely volatile, rising and falling rapidly depending on the whims of the day.
And all this was happening long before Roaring Kitty was back on the scene. So it seems to be one area of real sort of a potential problem and this is that -- you know, this is a president who is willing to use the power of the Oval Office for personal gain.
So this is where there seems to be one area of possible conflict here.
PATEL: Yes. I mean -- I'm actually surprised it's not higher, John, right? I mean, I'm surprised it didn't come off roaring great and now we're at this aspect.
I'm really interested to see how the stock does as he continues on the campaign trail. Does he continue to push it. Does his supposed supporters support it.
(AUDIO GAP) as a meme stock aspect as you mentioned, I'm surprised it's not much higher than it is.
Just as a general rule, anyone who tries to sell and picks the highs and sell and picks the lows to buy you are losing bet.
PATEL: Yes. I mean it is, right. I mean, if you -- if it's already at its high, its already too late, John to put in. I mean, unless you think it's going to go up further, but that you don't know because this is not a long-term bet of any kind of fundamentals because you don't know what it's going to grow year over year.
It is a very short-term bet and that's how people are using it or the people who are making money off of it they're day traders. They're trading at certain numbers, which that's not, that's not what gets reported, but that's what's happening. People are trading it very regularly to make money.
VAUSE: Yes.
Ryan, thank you for the explanation I really appreciate you being with us. Good to see you as always.
PATEL: Appreciate you, John.
VAUSE: Thank you.
The battle of A.I. continues with Google showcasing their newest model called Gemini 1.5 Pro. Comes just a day after the reveal of a new and improved ChatGPT from OpenAI.
New features from Gemini include the ability to have the A.I. read a textbook and present the information like a regular teacher to answer questions. Hopefully a nice one.
Users will also be able to search photos on their device with questions like when their daughter learned to swim or what their license plate number might be. That is truly creepy.
Besides being a personal assistant, some A.I. is being used to help people deal with the eventual loss of a loved one.
CNN's Anna Stewart, host of "DECODED" spoke with one family training A.I. models to keep their memory alive as they face multiple health issues.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: All right. Ready? Here we go.
ANNA STEWART, CNN CORRESPONDENT: It's a typical Saturday morning for the Gowin family. Jason and Melissa have three boys. Jace is eight years old, and the twins, Logan and Anthony are five.
JASON GOWIN: It's like living every day with a house full of feral raccoons.
Our boys are such a force of joy, destruction, but also joy.
STEWART: The Gowins focus on the good times. They don't know how many are left.
Melissa had a stroke days after the twins were born.
MELISSA GOWIN: It happened all so fast, like a blur in a way but. They said, they -- I only had two or three years. For them not to have their mother after that was heartbreaking.
Three months later, Jason received a diagnosis of stomach cancer.
J. GOWIN: It didn't look good for either one of us. We have no -- we had no plan and there was nothing in place.
M. GOWIN: God forbid, if they lose both of us, what can we give them? So they have something at least.
STEWART: After a bit of online research, Melissa and Jason A.I. startup, You Only Virtual. Created by Justin Harrison. He was inspired by his mother.
JUSTIN HARRISON, CEO, YOU, ONLY VIRTUAL: when she passed, I invented a new kind of technology to make sure that I kept in contact with her and that I didn't fully lose her.
STEWART: Harrisons still talks to his mother or this version of her, which he calls a persona. It's an ai model trained on years of text messages and phone calls between them.
It even learned her voice.
HARRISON: if we can reconfigure or rewire or remove significantly the pain from loss and maybe even redefine what it means to lose somebody.
UNIDENTIFIED MALE: Good morning, Jace, how are you today?
JACE GOWIN: I'm good. How are you?
STEWART: This is Jason's persona which Jace likes to cool robo-dad. Melissa's persona isn't quite ready to chat yet.
J. GOWIN: Can he make jokes?
JACE GOWIN: A lot of times.
STEWART: This is your real dad's biggest concern, right? Is he is as funny as real dad.
JACE GOWIN: Let me test him. Oh, the turkey.
[01:49:47]
J. GOWIN: I don't know if he knows the turkey story.
UNIDENTIFIED MALE: Yes. I remember that turkey story that you shared with. me before.
J. GOWIN: He knew part of it.
STEWART: Jason and Jace chat with the persona at least once a week?
But it's not all jokes. The reason for its creation looms large.
UNIDENTIFIED MALE: Oh Jace, where do I begin. There's simply not enough words to describe the depth of my love for you. From the moment you were born, you brought so much joy and light into our lives. Being a father is truly my greatest honor.
J. GOWIN: I need 3,000 letters. You, ok.
JACE GOWIN: There's only one you.
J. GOWIN: I know. Daddy's trying his best to be ok. Number one, I'm always in your real heart, always. Number 2, it's a really cool robot me that you can talk to.
JACE GOWIN: Yes, but I don't know how to type on the computer.
J. GOWIN: It's happening again.
STEWART: You're going to learn how to type real fast.
JACE GOWIN: Ok.
Melissa has outlived her prognosis by two years. Jason's cancer is now in remission, but he faces new health issues.
How do you feel about robo-dad, is he pretty good?
JACE GOWIN: Yes, but I needed to do the (INAUDIBLE) joke.
J. GOWIN: Laughter is what keeps us going here. And if you know, a little piece of me or a little piece of her can make our boys laugh one more time, this whole journey has been worth it.
UNIDENTIFIED MALE: I will always cherish our bond as father and son.
STEWART: Anna Stewart, CNN, Athens, Pennsylvania.
(END VIDEOTAPE)
VAUSE: We'll take a short break.
We're back in a moment.
(COMMERCIAL BREAK)
VAUSE: Well, the mothers of the former Miss U.S.A. and former Miss Teen U.S.A. are speaking out days after their daughters stepped down. During an appearance on "Good Morning, America", they are accusing pageant organizers of abuse and mistreatment.
(BEGIN VIDEO CLIP)
BARBARA SRIVASTAYA, MOTHER: Do not continue this charade.
The girls decided to step down, give their dream of a lifetime, a crown, a national title. Why did two girls decide leave. That's some bad how they were ill-treated, abused, bullied, and cornered.
UNIDENTIFIED FEMALE: She was so upset this is NOT what she worked so hard for --
THE Miss universe organization needs to come out and speak to us or apologize or clean this mess.
(END VIDEO CLIP)
VAUSE: It's the first time a winner in either competition has stepped down. The former Miss Teen U.S.A. said, quote, "No longer -- her values no longer are aligned with those of the organization."
Former Miss U.S.A. accused the pageant's CEO of a toxic work environment. Also, the mothers are speaking out because both of the titleholders or former titleholders are under an NDA, non-disclosure agreement.
Miss U.S.A. or the pageant organizers of Miss Universe have returned CNN's request for comment.
Now to the Westminster Dog Show. On Tuesday, dog lovers gathered in New York to watch the canine contenders vie for the top title. Best in show was claimed by a miniature poodle named Sage. The three-
year-old ball of fur was the clear favorite of the crowd. To win she had to outshine six other group winners. The honor for runner-up went to Mercedes, a German Shepherd somewhere. Do you see Mercedes?
[01:54:54]
VAUSE: Graduates of a nursing school of Philadelphia could barely recognize their own names because the announcer reading them at their commencement, mangled pretty much every single one of them.
Hey, it could be my brother or a distant relative. Here's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: Never have so many names been so butchered even easy ones like Victoria Elizabeth Bruce.
UNIDENTIFIED FEMALE: Victoria, Leigh Zebath Bros.
MOOS: Butchered beyond recognition. Be it Meghan --
UNIDENTIFIED FEMALE: Meghan Lu Iaubry.
MOOS: -- or Allison.
UNIDENTIFIED FEMALE: Alice Suni Cole Bishopo.
MOOS: And how can you mangle Molly. Molina Zabeth Cap.
MOOS: The announcer of Thomas Jefferson University in Philadelphia was reading off phonetically spelled names on cards. But how hard is it to pronounce Thomas.
For the record, Thomas, can you state your full name for us?
THOMAS MICHAEL CANEVARI (ph) JR., GRADUATE: Thomas Michael Canevari Jr.
MOOS: Thomas was the first college of nursing grad to actually correct the mispronunciation.
UNIDENTIFIED MALE: Thomas.
JIMMY FALLON, TALK SHOW HOST: Thomas, the name of our school Thomas Jefferson University.
MOOS: Thomas says at first it felt like a slap in the face.
UNIDENTIFIED FEMALE: Tah moo may.
CANEVARI: Then she never even said my last name at all.
MOOS: But now that the video was gone viral.
CANEVARI: We just cannot stop with thinking and laughing about it. I'll never forget that day for as long as I live.
MOOS: Neither will Sarah Virginia Brennan.
UNIDENTIFIED FEMALE: Sayeer Voon Jinju Brennan.
MOOS: On her Instagram, Sarah posted "A new degree and name. Thanks. I guess."
The announcer apologized. So did Thomas Jefferson University saying, "Each graduate deserves to have their name honored correctly." But for now, Thomas is aka Tahmoomay.
CANEVARI: I have a new nickname all my friends gave me.
And when Thomas congratulated his new friend, he addressed her and signed off with their new names.
UNIDENTIFIED FEMALE: Tah moo may --
MOOS: Jeanne Moos, CNN -- New York.
UNIDENTIFIED FEMALE: Thomas.
(END VIDEOTAPE)
VAUSE: Sometimes those names are tricky.
Thank you for watching. I'm John Vause. CNN NEWSROOM continues with my friend and colleague, Rosemary Church after a very short break.
Hope to see you right back here tomorrow.
[01:57:25]
(COMMERCIAL BREAK)
