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CNN International: U.S. Military Tracking Russia's Military Exercises With Cuba; U.N. Report Says Both Israel and Hamas Committed War Crimes, Grave Violations of International Law; G7 Leaders Head to Italy for a High-stakes Meeting to Cover Middle East, Russia, Climate; Hamas Responds to Latest Gaza Ceasefire Proposal, Include Amendments to Proposal; Hezbollah Launched Dozens of Rockets Toward Israel; Joe Biden's Son Convicted of Three Felonies for 2018 Gun Purchase; U.S. Consumer Inflation Slows in May. Aired 8-9a ET

Aired June 12, 2024 - 08:00   ET

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


[08:00:10]

AMARA WALKER, CNN ANCHOR OF "CNN NEWSROOM": Hi, everyone, and welcome to our viewers all around the world. I am Amara Walker. This is "CNN Newsroom." Just ahead, as Israel endures a barrage of rockets from Lebanon, a damning report from the U.N. accuses both Israel and Hamas of war crimes. We are live in Tel Aviv and London with the latest. Plus this hour, U.S. President Joe Biden is set to depart for the G7 Summit in Italy, a trip that comes just one day after his son's historic conviction. And a show of force at sea, why heavily-armed Russian warships are due to arrive in Cuba in the coming hours

We begin with that damning new U.N. report, 250 days into the war in Gaza, the inquiry finds both Hamas and Israel have committed war crimes and other violations of international law. Now, that 200-page report looks into events beginning on October 7th, which is the day Hamas and other Palestinian militant groups launched a terror attack. It covers the conflict up to the end of 2023.

Israel is lashing out at the U.N., accusing it of anti-Israel discrimination. The report comes as the fate of the latest proposal for a ceasefire and hostage release remains unclear. Mediators are studying a response from Hamas, one that an Israeli official has described as rejection of the plan. U.S. Secretary of State Antony Blinken is continuing his round of meetings in the Middle East to push for the ceasefire proposal backed by the U.N. Security Council. He is in Qatar this morning, the last stop on a four-nation visit.

CNN's Oren Liebermann is joining us now live from Tel Aviv, Israel. Oren, a real diplomatic flurry here with Blinken in Doha and lots of confusion over Hamas' latest statements. Where do things stand as we know it in regards to the ceasefire talks?

OREN LIEBERMANN, CNN CORRESPONDENT: So, we expect to hear from Secretary of State Anthony Blinken fairly soon here, and it'll be informative to get the U.S. perspective because we haven't heard from the U.S. other than to say they have received the response. This will be critical to see how the U.S. views negotiations. Hamas waited 12 days to respond after President Joe Biden put a U.S.-backed proposal on the table, that Israel had at least openly largely accepted and said it would go forward with.

The U.S. was very much at least confident that Israel was on board with this. The question, where does Hamas stand? Hamas finally responded fairly late last night, in which it says it was open to agreements, but also according to a source familiar with the talk, had proposed amendments to parts of the deal itself. Now, Israel, in response to Hamas, had rejected the deal, put forward by President Biden. Now the question, how does the U.S., how do the Qataris, how do the Egyptians view it? And that is what we are waiting to see.

Blinken didn't come here hoping for a major breakthrough, but he also doesn't want to see this process that's ongoing right now fall apart and that will be the key. We'll get a better sense of how Blinken views it perhaps after he speaks. And then we'll see if this leads to meetings, negotiations, and if there's an effort to push this forward here, or if like so many times we've seen in the past, it all falls apart in the details.

WALKER: And in the meantime, we've been reporting about nearly 200 rockets being launched from Lebanon into northern Israel, today. What are you learning about that?

LIEBERMANN: So it is worth pointing out that northern Israel has been essentially at an escalated state of conflict with Hezbollah for quite some time now. A week ago, there were large fires raging across northern Israel and it seems there has been another escalation starting last night when Israel carried out a strike which killed Hezbollah Commander known as Abu Taleb, as well as a number of other Hezbollah militants.

In response, we are now seeing a barrage of rocket fire, approximately 200 at this point, launched by Hezbollah into northern Israel. A number of fires have been started by those rockets, according to Israel police and they've had to evacuate some homes in some areas in northern Israel because of the spread of those fires. It is fairly easy to see, I think behind me it is hot and dry, so those fires are in prime condition for spreading. This is another escalation over what we've already seen.

There had been, of course, in recent months, sort of a diplomatic effort to find an off-ramp here; that clearly failed sometime ago. And now, the only question is how far does this rise with a border already very much on edge.

WALKER: Oren Liebermann, appreciate your reporting from Tel Aviv. Thank you very much. And CNN's Jomana Karadsheh is joining us now from London.

[08:05:00]

She has a closer look at the U.N. inquiry into the first few months of the war in Gaza. This inquiry into the first few months of the war in Gaza, as we said. Jomana, what are the takeaways from this report?

JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT: Well, you know, Amara, after months of this investigation by the U.N. Commission of Inquiry, they have released this two damning reports totaling more than 200 pages with their findings and one report focuses on the October 7th attacks on Israel, where they found that Hamas and six armed Palestinian armed groups, and they say some instances as well, Palestinians in civilian clothing committed war crimes they say, including intentionally directing attacks against civilians, murder or willful killing, torture, taking hostages including children.

They also, Amara, identified what they say is "Patterns indicative of sexual violence" and concluded that these were not isolated incidents, but they were perpetrated in similar ways in several locations, primarily against Israeli women. And then you have the reports on the Israel's military operations in Gaza. As you mentioned earlier, this mostly focused on events from October until the end of December, and there they found that Israel had committed, they say, war crimes and crimes against humanity, accusing Israel of using starvation as a method of warfare.

They say that they found that Israel had enforced this total siege of Gaza that amounted to a collective punishment of a population. They accused Israel of intentionally directing attacks against civilians and civilian structures. And here they say that they found, Amara, that the immense number of civilian casualties, the level of devastation in Gaza, they say that this was the result of a strategy of -- to cause maximum damage, disregarding the rules of war, proportionality, distinction and adequate precautions, that this was disregarded, and other crimes as well.

They accused Israel and Israeli forces of sexual violence, extermination, murder, or willful killing, forcible transfer and more. Now, the Commission has accused Israel of obstructing its investigation, saying that it did not give it access to Israel or the occupied Palestinian territories. But Israel for months has made its position, Amara, very clear saying -- accusing this Commission of being anti-Semitic and anti-Israel body, and they said that they will not cooperate with their investigation.

And as you mentioned, today, the response coming from Israel to these findings saying that the U.N. Commission of Inquiry showed systemic anti-Israeli discrimination, again, rejecting accusations against the idea of saying that the Israeli forces adhered to international law and that they carry out their own investigations and they say that it disregarded in these reports and its findings what they say is Hamas using civilians in Gaza as human shields. And on the accusation of sexual violence, Israel says that it is outraged by attempts to draw a false equivalence they say between Israeli soldiers and Hamas, and we are waiting to hear from Hamas, for its response on this, Amara.

WALKER: And no surprise there regarding the response from Israel, as we know, the relations between the U.N. and Israel have been strained for many years and sunk to historic lows with this war. Jomana Karadsheh, good to see you, there in London. Thank you.

Well, the Middle East is expected to be a major topic at this week's G7 Summit in Italy. U.S. President Joe Biden is set to leave for the high-stakes meeting later this hour. We are watching for that and we are hearing the group of seven democracies plans to focus on how to use frozen Russian assets to help Ukraine rebuild. Italy also says Pope Francis is expected to be there and will lead a session on artificial intelligence.

Now, India's president and the U.N. Chief have also been invited, a lot of big names heading to this gathering. CNN's Nic Robertson is standing by for us in Monopoli, Italy, not far from the Summit. Nic, a lot to talk about on the agenda, but obviously, Ukraine and Israel will dominate.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah, Ukraine is certainly going to get a lot of attention. President Biden expected to hold a joint press conference with President Zelenskyy, who will be here. Of course, they met just a few days ago in France.

[08:10:00]

But, on the agenda here will be this $50 billion loan from frozen Russian assets. There are about $300 billion of frozen Russian assets. So, this is the profit that has accrued from those assets. But the question becomes, how do you underwrite it? And there had been a feeling that the European Union could sort of shoulder that responsibility, but it does seem as if the conversation is coming towards the European Union and the United States doing that. But this will be very important for Ukraine if it is delivered and it is expected that it will be agreed and it is a historic move forward for Russia's frozen assets to be used in this way to help the country that it is attacking.

But there are other big the issues here to discuss on. Before they even get to Ukraine, they'll talk about Africa, development there, and about climate change because big issue in Italy and in Europe is immigration. And a lot of the immigration comes by crossing the Mediterranean into Europe, coming from the African continent. So, the G7, the world's developed democracies, the most powerful economic grouping, if you will, have a responsibility and have in the past tried to find ways to use their monies to help the African continent and in that way, perhaps mitigate some of this drive for migration.

That will be subject in of itself on the second day here, as well the indo-pacific, an important issue for President Biden as he tries to build bigger global support for these growing tensions with China in the Indo-Pacific. And then as you said, AI, the Pope coming in on Friday is expected to have some very serious and substantial input on that issue, remembering just last year, the Pope was sort of caught in a deepfake where he was seen wearing this white puffer jacket that turned to be, of course, not him, but a fake. And this is a Pope who has a technical background, studied as a Chemist, has views on how technology can benefit mankind rather than damage it. And this, of course, will be his central (inaudible) to these leaders to grapple with that responsibility.

WALKER: It would be fascinating to watch. I do want to ask you this, Nic, because obviously, on the front or back of many of the European leaders' minds is this election that's looming here in the United States, the possibility that Donald Trump could retake the White House. And as you know, President Biden has used these summits to declare that the U.S. is back and, of course, as you know, the question has been for how long.

Biden and Ukrainian President Zelenskyy, they're going to be sharing the stage at a news conference on Thursday. What do you make of that? Is that a calculated move to present a united front and to convince U.S. allies, you got to stay in the flight with Ukraine?

ROBERTSON: Yes. And a way through this fund to make sure that even if President Biden isn't in office, that the money and financial support, that continuity of support that is going to be so vital for Ukraine in its war of attrition with Russia, which is something, by the way, that -- the war of attrition is something that benefits Vladimir Putin. So, it is vital that Zelenskyy has not only the equipment to fight the war, but actually to power the country, to keep people in jobs, to keep the economy turning over.

But look, President Biden isn't alone facing electoral challenges. You have President Macron arriving from France who has just called for a snap election in his parliament in just a couple of week's time. You have the British prime minister incoming, who has an election on July 4th. Justin Trudeau, the Canadian prime minister, arriving here with facing elections next year. You have the Japanese prime minister coming in here facing calls from the opposition to call a snap election because of irregularities within the prime minister's party.

So, the whole picture and the faces around the table at the G7 by this time next year could be wholly different. I think one that seems to be have a certainty of a place at that table is the host this year, Giorgia Meloni, another of the list of leaders coming here. Ursula von der Leyen, European Commission President, also vying to extend her job within the European Union. So really out of those eight principal leaders here, five of them may not be back in a year's time.

WALKER: Wow, all right. Nic Robertson, really appreciate your reporting there from Italy. Thank you so much.

To U.S. politics now and the history making moment on Tuesday when Hunter Biden was convicted of three felonies related to his purchase of a gun in 2018. Hunter Biden faces up to 25 years in prison but, as a first-time offender, will likely get a lighter sentence.

[08:15:00]

Now, jurors in the case told CNN they felt sympathy for the son of President Joe Biden, but the evidence against him was overwhelming. More now from CNN's Paula Reid.

(BEGIN VIDEO CLIP)

PAULA REID, CNN CHIEF LEGAL AFFAIRS CORRESPONDENT (voice-over): Just 90 minutes after Hunter Biden's guilty verdict, CNN got incredible insight into the case from Juror Number 10. One big mistake from the defense, calling Hunter's daughter Naomi to testify.

JUROR NUMBER 10: I felt -- I felt bad that they put Naomi as witness. I think that was probably a strategy that should not have been done. No daughter should ever have to testify against her dad. REID (voice-over): Despite feeling badly for Hunter and his battles with addiction, the 12 jurors agree that they had no choice but to convict.

JUROR NUMBER 10: All 12 jurors did agree that, yes, he knowingly bought a gun when he was an addict or he was addicted to drugs.

REID (voice-over): Although they all voted guilty, another juror CNN spoke to off-camera, questioned whether the case should have been brought in the first place, saying "It seemed like a waste of taxpayer dollars." And the jurors interviewed by CNN said politics played no role in their decision.

JUROR NUMBER 10: President Biden never really even came in to play for me. His name was only brought up once during the trial and that's when I -- that's when it kind of sunk in a little bit, but you kind of put that out of your mind.

REID (voice-over): President Biden released a statement after his son's verdict saying, in part, I am the president, but I am also a dad. Jill and I love our son and we are so proud of the man he is today, and I will accept the outcome of this case and will continue to respect the judicial process as Hunter considers an appeal.

Hunter also issued a statement after court thanking his wife and supporters saying, I am more grateful today for the love and support I experienced this last week from Melissa, my family, my friends, and my community, than I am disappointed by the outcome.

And Special Counsel David Weiss made aware statement defending the case.

DAVID WEISS, SPECIAL COUNSEL, U.S. ATTORNEY FOR DISTRICT OF DELAWARE: Ultimately, this case was not just about addiction, a disease that haunts families across the United States, including Hunter Biden's family. This case was about the illegal choices defendant made while in the throes of addiction, his choice to lie on a government form when he bought a gun and the choice to then possess that gun.

REID (voice-over): Paula Reid, CNN, Wilmington, Delaware.

(END VIDEO CLIP)

WALKER: All right. Let's talk about what this latest blow means for President Biden. Joining us now is CNN's Senior White House Reporter Kevin Liptak.

Hi, Kevin. What are we learning about President Biden and the first lady, how they've been reacting to this conviction? Obviously, as a father and his mother, this has to be a really difficult time for them.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yeah. And I think probably the best signal that we got didn't come from a statement or a speech, but from the decision by the president yesterday to scrap his schedule here at the White House and return to Wilmington, Delaware where to be with his son Hunter, to be with his wife, to be surrounded by family at what was by all accounts a very, very difficult moment. And we know that behind the scenes, the first family has been anguished by what their son Hunter has been going through in this trial.

This really has been a years-long saga that they're confronting when it comes to Hunter Biden's of problems with addiction, and you did see in the statement that the president released yesterday, the sense of pride in his own recovery from the depths of addiction and also saying, of course, that they accept the outcome of this trial. I think the president, he's approaching this as a father really, not necessarily as a president or as a politician. And I think rooted in that approach is this fear that the stresses, the scrutiny could cause his son to relapse back into addiction, which is something that the president, of course, very much fears.

And so, you do see him holding Hunter Biden very close throughout all of this and it was very striking when the president arrived in Wilmington yesterday afternoon to see Hunter there in full view of the cameras on the tarmac with his young family. You saw the president get off the helicopter, embrace his son, embrace his grandson as well, really showing the world that he is standing by his son Hunter at this very, very difficult moment. But at the end of the day, this is not necessarily over. Of course, there is sentencing that will occur before November's election.

There's also another trial on tax charges that Hunter Biden will have to undergo later this year, which could potentially unearth just more embarrassing details of how exactly he was spending his money at the darkest moment in his life.

[08:20:00]

So President Biden, the First Lady Jill Biden did spend yesterday evening sort of huddled with their family at the home in Wilmington and he is on his way now to the G7 Summit in Italy. But certainly, this is a political backdrop that will be weighing on him as he goes about his world duty -- world leader duties over the next couple of days.

WALKER: (Inaudible) put on that hat now as a world leader. Kevin Liptak, appreciate you. Thank you very much.

Still to come, a closer look at the history-making verdict and Hunter Biden's gun trial, a legal expert weighs in on his chances of winning an appeal. But first, images that evoke memories of the Cold War, Russian ships capable of launching hypersonic missiles are on their way to Cuba, why and what it all means, when we come back.

(COMMERCIAL BREAK)

WALKER: A show of Russian force with a clear message to the United States, three Russian warships and a nuclear-powered submarine are expected to arrive in Cuba soon, ahead of military exercises in the Caribbean. And the U.S. has deployed a ship and plans to monitor this exercise. It all comes amid rising tensions between Washington and Moscow over the war in Ukraine. But first off, we want to head over to Doha and take some live pictures where there is a news conference being held between Secretary of State of the U.S., Antony Blinken and the prime minister and foreign minister of Qatar. Let's listen in.

(BEGIN VIDEO CLIP)

MOHAMMED BIN ABDULRAHMAN AL THANI, QATARI PRIME MINISTER AND FOREIGN MINISTER (through translator): (Inaudible) and as we have mentioned in many previous stops that in such deal, both parties need to make some concession in order to reach a suitable arrangement and reach a deal. We in the State of Qatar with our partners committed to bridge the gap, to find a way to end the war as soon as possible and would like to send a message to everyone that every day is a loss of life and of innocent people, every day that pass in the previous eight months, unfortunately, we have seen the catastrophe increasing the other day and we see more casualties especially of the civilians with their children, women in Gaza Strip and with no doubt, we need to take a clear decision and demand (inaudible) into this war -- 37,000 martyrs have passed so far, died so far and thousands wounded in addition to this collective punishment policy and starvation that is being used against our brothers in Gaza.

[08:25:00]

We are witnessing also a change in this conflict in the previous time and there is a clear and firm call to put an end to this war. And in this also regard, we have received the Security Council Resolution, which was presented by the United States of America for an immediate ceasefire and a deal to exchange the hostages and go back to political negotiation to find sustainable solution. And we in the State of Qatar welcome that resolution.

In the previous time, there were so many meetings and regional conferences and international ones. We have participated in the State of Qatar in order to find a sustainable solution to the Palestinian case and also, there was -- there were visits in light of the ministerial committee that had been established and also, the meetings with European foreign ministers. And yesterday, we have participated in a conference for an immediate humanitarian response by the call of King Abdullah II and the President of Egypt, Abdel Fattah El-Sisi, and the Secretary General of the United Nations, who called for an immediate action to end this war and the respect of the international law.

And also in this regard, we welcome also the continuation of the air support or air drop by the Americans and also would like -- also to praise your additional package of support to Gaza. The State of Qatar has its continued with its efforts in order to send all humanitarian aid continuously to our brothers. Your Excellency, you know, that we are living in very critical times and we believe that reaching a deal, an agreement is very important. And this deal will save the lives of the innocents and also will save the whole region which is on the verge of collapse and explosion. And we depend -- rely on the American role and our also partners in Egypt and the rest of the countries in order to pressure all the parties to reach an agreement that ends that war. And Your Excellency, you know that I believe that we have received -- its time that we need to reach a sustainable solution. And today, we have discussed how to reach those sustainable solutions that bring the stability to Gaza and to our also brothers in the West Bank and to everyone that lives in this region. We believe that sustainable solution and is just one which is integrated (ph) Palestinian as a state with Jerusalem its capital based on the international law on the borders of 1967 to live in peace alongside with Israel and as you are aware, Your Excellency, the region is open to have a clear peace agreement based on the Arabese (ph) initiative and there is a moment in the General Assembly to receive Palestine or accept Palestine as a full member and this step will also contribute to the two-state solution.

Thank you, Your Excellency, for your presence in Doha and for your continuous cooperation. And on our strategic partnership with the U.S.A., in this conflict and any other -- and on other files and issues.

ANTONY BLINKEN, SECRETARY OF STATE OF THE UNITED STATES: Well, first, let me just say, it is very good to be back here in Doha and especially to be with my colleague and my friend, the prime minister. As you heard him say, we were together just yesterday in Jordan, had a conference to work to rally more international support to address the dire humanitarian crisis in Gaza.

Qatar has already shown remarkable generosity in helping people in such urgent need, providing 4,700 tons of food, medicine and other life-saving aid.

[08:30:00]

At yesterday's conference, I announced $400 million more in additional support from the United States to the Palestinians. That brings the total amount that we've provided to $670 million in additional U.S. assistance to the Palestinians in the eight months that this war has been going on. We've long been the leading provider of support to Palestinians and we will continue to do everything we can to support them, particularly in this time of need.

We are also continuing to work every single day on increasing the flow of assistance into Gaza and making sure that it gets to people who need it within Gaza, working to improve civilian protection, working to secure the release of hostages. Now, single most effective and most immediate way to end the suffering of people in Gaza, to end the suffering of Palestinians and Israelis alike, to tackle the humanitarian assistance crisis, to prevent the conflict from further escalating and spreading to other places is to get a ceasefire that allows us to get to work toward a more durable end to the conflict.

Here again, Qatar has been a tireless partner and the prime minister personally a tireless partner in working to mediate a ceasefire and a hostage release, something that the prime minister and I first discussed here on October 13th and many times since. 12 days ago, President Biden set out a ceasefire proposal rooted in core principles of releasing all the hostages, surging assistance into Gaza, guaranteeing Israel's security, providing a path to an enduring end to war, and starting the massive reconstruction for Gaza.

The entire world, almost without fail, has been behind this proposal and we've heard it again and again and again, individual countries pronouncing themselves in support in this region and beyond, important groups like the G7, the Arab League, Palestinian authority, Israel, and of course, just two days ago, the United Nations Security Council. Leaders in the region that I've met with over the last couple of days, they have reaffirmed that again and again and again.

So, we were waiting on one response and that was the response from Hamas. And as the prime minister said, last night, we received a response. Hamas has proposed numerous changes to the proposal that was on the table. We discussed those changes last night with Egyptian colleagues and today with the prime minister. Some of the changes are workable; some are not. Here in a nutshell is where we stand. A deal was on the table that was virtually identical to proposal that Hamas put forward on May 6th, a deal that the entire world is behind, a deal Israel has accepted, and Hamas could have answered with a single word, yes.

Instead, Hamas waiting nearly two weeks and then proposed more changes, a number of which go beyond positions that it previously taken and accepted. As a result, and you heard the prime minister say this, the war that Hamas started on October 7th with its barbaric attack on Israel and on Israeli civilians will go on, more people will suffer, more Palestinians will suffer, more Israelis will suffer. But in the days ahead, we are going to continue to push on an urgent basis with our partners, with Qatar, with Egypt to try to close this deal because we know it is in the interests of Israelis, Palestinians, the region, indeed, the entire world.

And we all agree that the deal has to be grounded in the principles of the ceasefire proposal that the entire international community supports. There's something else that is critical and the prime minister alluded to it. It is also crucial that we get from the immediate ceasefire that we are working urgently to achieve to an enduring end. And in order to do that and to do that effectively, we have to have plans for the day after the conflict ends in Gaza and we need to have them as soon as possible. For months, we've been working with partners throughout the region on such a plan and that was also a key focus of conversations I've had over the last couple of days.

[08:35:00]

In the coming weeks, we will put forward proposals for key elements of a day-after plan, including concrete ideas for how to manage governance, security, reconstruction. That plan is key to turning a ceasefire into an enduring end to the conflict. But also, turning an end of war into a just and durable peace and using that piece using that peace as a foundation for building a more integrated, more stable, a more prosperous region. Over the course of what is now my eighth visit to the region since October 7, everyone that I've engaged with has made clear that this is the path they want to pursue.

Now, I can't speak for Hamas or answer for Hamas and ultimately, it may not be the path that Hamas wants to pursue. But Hamas cannot and will not be allowed to decide the future for this region and its people.

UNIDENTIFIED MALE (through translator): (Inaudible) for a Q&A, the first question from Al Jazeera, Arabic. My -- I have two questions. The first one to Your Excellency, prime minister, guarding the response of Hamas on the proposal, are we talking about take and give with the officials of Hamas with the mediator or the comment and amendments will be for the Israeli to respond?

And the other question for Secretary Blinken, which is about your eight visits to the region, we are talking about eight visits so far, during those visits, you and other American officials who have met with the families of the Israeli hostages, where there any attempt to meet with the families of the wounded or those who died of the Palestinians or those who even were wounded on the hands of the settlers or even in Gaza? For example, in Doha here, there are 2,000s of the Palestinian patients who are wounded who came here for treatment. Thank you very much.

ABDULRAHMAN AL THANI: Concerning your question, yesterday, we have received a response, and as we have said in the statement, now, we are studying that response and of course, there will be give and take with Hamas or negotiation with them in order -- or with the Israelis in order to bridge the gap between the both positions. Of course, those are nothing (inaudible) not a new dynamic for the negotiation.

Usually, there is space for negotiation because after all, it is negotiation to reach an agreement, a deal. There is no absolute response, yes or no. So we wish that this time of negotiation will be the shortest. We wanted to have more momentum and movement. However, unfortunately, we have faced so many challenges in the-- as we have said, we are committed. We want to present a proposal, so that we bring both parties closer. Thank you.

BLINKEN: Thank you for the question and the short answer is yes. I've had the opportunity to meet with Palestinians who suffered from the conflict in Gaza. When I was in Jordan, I believe it was on my last to the region, may have been the one before that. I met with a remarkable group of women who had managed to leave Gaza to get out, are now in Jordan, but have left family members behind, have lost family members. And I heard directly from them, everything that they had experienced and everything that their family members who remain in Gaza continue to experience.

In the United States, I've met with Palestinian Americans who have family in Gaza, including family members who've been killed or terribly injured over the course of these eight months. I carry with me a little pamphlet that one of these individuals gave me with pictures of his family members, including a little one-year-old boy, who was killed in Gaza.

[08:40:00]

And I have to tell you that their stories, their suffering, that motivates me just as the suffering of the hostages and the suffering of those who were slaughtered on October 7th motivates me to do everything possible to bring this conflict to an end and to put us on a path to durable peace and security because, at the end of the day, this is exactly about what you've suggested. It is about the men, the women, the children, whether they are in Gaza, whether they are in an Israel, and we have to -- we have to be looking out for them.

And I've said this before, but I'll say it again, the biggest poison in our common well that we all have to drink from is dehumanization, the inability to see the humanity in someone else. And when that happens, when hearts get hardened, it is very hard to do anything. It is very easy to justify anything. So, we have to push beyond that and the most important way to do that is to always have in mind what little girls, little boys, women, men are going through as we speak.

UNIDENTIFIED MALE: (Inaudible) Iain Marlow, Bloomberg.

IAIN MARLOW, SENIOR REPORTER, BLOOMBERG NEWS: Thank you. Thank you both. Secretary Blinken, for you, despite your intense efforts to pressure Hamas, they obviously don't seem to be accepting the deal as President Biden laid out and the Israelis are characterizing this as a flat-out rejection. Does Hamas' response count as a rejection of the deal in your view? Do you think the deal is essentially dead? And if not, what exactly is the U.S. diplomatic strategy now to try and keep these talks alive and bring the parties closer together?

And secondly, the U.S. has put all the emphasis on pressuring Hamas, at least publicly. But do you think it might be time for the U.S. to put more pressure on Israel to move them closer towards accepting the permanent ceasefire that Hamas has asked for, even if that allows the group to survive in some form?

And prime minister, even with the elaborate three-phase deal that is being created to try and bridge the divide between Israel and Hamas, we still seem to be stuck on the fundamental question of a temporary versus a permanent truce, which is effectively, will Israel allow Hamas to survive this? Do you think these negotiations can really be salvaged? And what is the risk to the region if these talks continue to fail? Thanks.

BLINKEN: Thanks, Iain. Look, as I said, based on what we saw last night, the response from Hamas, numerous changes proposed to the deal that was on the table, and that the entire world has gotten behind, but some of those are workable changes. Some as I said, are not. I don't want to characterize it further, but at some point in a negotiation and this has gone back and forth for a long time, you get to a point where if one side continues to change its demands, including making demands and insisting on changes for things that it already accepted, you have to question whether they're proceeding in good faith or not. But based on what we've seen and what I've discussed with the prime minister and what we discussed with our Egyptian colleagues, we are determined to try to bridge the gaps and I believe those gaps are bridgeable, doesn't mean they will be bridged because, again, it ultimately depends on people saying yes.

But here's the thing, and we both said it. The longer this goes on, remember, Hamas had this for 12 days and it is not as if the world stood still in those 12 days. People were suffering throughout those 12 days. The longer this goes on, the more people will suffer, and it is time for the haggling to stop and a ceasefire to start. It is as simple as that.

Look, Israel accepted the proposal as it was, and as it is. Hamas didn't. So, I think it is pretty clear what needs to happen. And we are determined in the coming days to, again, try to work this -- we will work this with urgency and see if the gaps that are workable, we can actually work and bring it to conclusion, and then may be that Hamas continues to say no, well, I think it will be clear to everyone around the world that it is on them and that they will have made a choice to continue a war that they started.

(END VIDEO CLIP)

[08:45:00]

WALKER: You have been listening to a live news conference there in Doha, Qatar with U.S. Secretary of State Antony Blinken and the prime minister there. The biggest takeaway was from this last question where you heard the one of the reporters ask Secretary of State Antony Blinken whether or not the deal is dead as a result of Hamas making amendments to this latest ceasefire/hostage release proposal, which was backed by the U.S. and is also backed by the U.N. Security Council. He didn't say the deal is dead but it has injected a fresh air of uncertainty and maybe more pessimism.

Let's bring in CNN's Oren Liebermann, who has been listening into this as well. What was your takeaway from it?

LIEBERMANN: Very much what you're honing in on right now, Amara. And this was what we were waiting to hear, how do the U.S. -- how does the U.S. view Hamas' response and how do the Qataris. And it is clear from what Secretary of State Antony Blinken said that he puts the blame if this fails at this point, right on Hamas, and that's because he says in Hamas' response, they have asked for what he called numerous changes. He did say some of them are workable while some of them are not.

He also pointed out both in his opening statement and then in response to that last question, that Hamas has previously accepted proposals and then in subsequent rounds of negotiations blown past the positions which they already had. And that, of course, he says has not helped negotiations as and it hasn't helped to bring about a ceasefire. He was then asked about this right at the end there in the last question we listened to, is it at Hamas' feet and he said -- let me look at my notes here for a second -- he said, look, if you have to go back, back again and again to the same group in the negotiations and they change their own positions, he then said you have to question whether they are proceeding in good faith or not.

He also said, Israel has accepted the proposal that is on the table as has the U.N. Security Council. And therefore, he concludes it is on Hamas to accept this. Now, because they haven't given a response that is a clear acceptance or a rejection according to the Qataris, the U.S., he says as will other negotiators keep trying to push forward to try to bridge the gaps. And both he and the Qatari foreign minister and prime minister say this was possible, and this will be the focus of the efforts. Now, he didn't mention Israel when he started talking about day-after plans, but it is clear that is what he is referring to because members of Israel's own government have accused Prime Minister Benjamin Netanyahu of not having a day-after plan and that is obviously a necessary part of this. An immediate ceasefire hopefully then leads to a permanent ceasefire, but that can't happen without adapter plan. He says the U.S., in the coming weeks, will put forward its own day-after plan that will include ideas, proposals on governance, on rebuilding, and on much more.

So, that is also a key part of what Blinken put forward here. So at least from the U.S. and the Qatari perspective, there is a path forward and they are going to try to expand that and move forward with it. Again, Blinken said that there were numerous changes proposed by Hamas, some are workable, some are not. The Qatari foreign minister and prime minister said, there is space for negotiations here and they will try to bridge the gaps. We will see in the coming days if that is possible or if, as we've seen too many times before, this all falls apart on the details of what is on the table right now.

WALKER: Yeah. But clearly, there is that air of suspicion whether or not Hamas is negotiating in good faith, those are the words that Antony Blinken used and he also mentioned in that news conference, Oren, that this deal that Hamas has is almost identical to the deal that Hamas put forward back in May. So again, it raises questions as to why Hamas is coming back and asking for numerous amendments as Anthony Blinken said.

Could you remind us what is in this deal that the U.S. backed because there is a -- this is a three-phase proposal that Israel and the U.N. Security Council also supports.

LIEBERMAN: So you are right, it's a phased -- a three-phased approach. Phase I is an immediate ceasefire and the beginning of the release of the hostages-- women, children, and the elderly in exchange for the release of Palestinian prisoners in Israel. Israel would withdraw from densely populated areas, that would then lead to a space for negotiations to try to get to Phase II. Phase II being a permanent ceasefire, the complete withdrawal of Israeli forces. There is no clear timeline set on those negotiations or on how long Phase I takes to get the Phase II.

According to a source familiar with the discussions, this is at least one of the proposals on this timeline that Hamas has tried to inject into the ongoing negotiations. And then Phase III is the rebuilding of Gaza. This is the proposal that is on the table right now. Blinken said, Israel has accepted it and you are right to point out that he said it is very similar to what Hamas put forward and accepted about a month ago. But he said Hamas' positions have changed on positions they have previously accepted.

[08:50:00]

And now, it is -- can the U.S., can the Qataris, can the Egyptians move forward from this spot, hoping that the acceptance of U.N. Security Council Resolution, which Hamas at least voiced some support for, gives an international backing right now to the effort that is so desperately needed.

WALKER: So, it doesn't look like the deal is dead, at least that is not what is being said explicitly. I guess at best, there is just more uncertainty added to these talks. Oren Liebermann, appreciate you joining me for this. Thank you. We'll be right back after this.

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WALKER: A big day for U.S. economic news, just out the latest inflation numbers and the rate of inflation slowed in May to 3.3 percent year-on-year, down from April's 3.4 percent. This latest snapshot of U.S. inflation comes just hours before the Federal Reserve unveils its key interest rate decision. Here is the latest look at Wall Street Futures. All right, let's get right to CNN's Matt Egan now. OK, so new U.S. inflation numbers are out, somewhat positive.

MATT EGAN, CNN REPORTER: Yeah, Amara. Positive and better than expected which, of course, is really encouraging because, listen, inflation remains the number one problem in this economy and arguably the number one frustration among voters. So, we've found out that consumer prices went up by 3.3 percent year-over-year in May. Now, that is not good, right? That is well above what is considered healthy and the pre-COVID pace. But, that is an improvement from 3.4 percent in April.

It is better than it had been anticipated. The real surprise is the month-over-month figure that showed prices did not budge in May. There was zero inflation. We have not seen that in almost two years. You have to go back to July of 2022, the last time that this figure was unchanged. And again, that is better than expected. And this was really driven by the fact that gas prices have gone down, right? That is big news and that is very important. It is not just gas prices though, we've also seen some other improvements.

We saw price drops month-over-month for air fare, new cars, recreation, and clothing. Now when you dig in a little further, economists like to look at what is known as core inflation, which excludes food and energy. It is looked at as a better indicator of where inflation is going next. And again, we saw some improvement there, not healthy overall, but still core inflation was up by 3.4 percent. That's the lowest since April of 2021and again, that was better than expected. Now, all of this was received well on Wall Street.

We saw Dow Futures at the last check, up about 300 points. That's compared to basically no change in Futures before these numbers came out. So investors are celebrating this. Obviously, it is not all good news. There is still some problems, of course, shelter, for example, remains way too high, the cost of rent and buy. We've also seen that the price of going out to eat continues to go up. So, we need to watch all of them at. But, Amara, I do think big picture, these are some encouraging news, some glimmers of hope on the inflation front.

WALKER: Another thing that was maybe seen as a double-edged sword last week was the fact that the job market was super hot, right? And of course, the question now leads to the Fed, which is set to make an announcement on its key interest rate later today. So then, what do we expect there, knowing that the hot job market doesn't help in the inflation fight, but we are all seeing inflation slowing just a bit?

[08:55:00]

EGAN: Right, Amara. There is a lot of moving pieces here and I do think that Friday's Jobs Report did raise some concerns that may be the economy is too hot. Today's Inflation Report though certainly helps. Now to be clear, the Fed is not likely to cut interest rates today. There is almost no chance. I just looked and even after these numbers came out, the market is pricing in less than a 1 percent chance of a cut today. The big news is what happens -- what does the Fed say about the future, where are interest rates going next.

And this is one of those meetings where the Fed releases those interest rate projections. That happens in every other meeting. It is known as the dot plot. Now previously, back in March, the Fed was penciling in three interest rate cuts this year that would have been great for everyone concerned about the high cost of borrowing, rent, mortgages, car loans, credit cards. That does not seem likely just looking at the calendar.

But, today's report does keep alive the chance that the Fed will cut interest rates twice this year. So investors are going to be really paying attention to whether or not the Fed is still projecting three cuts, is it two? Is it one? It is a very big deal, Amara, for the economy. And frankly, it could even play a role in the election coming up.

WALKER: Yeah, perhaps. Matt Egan, good to have you. Thank you so much. I'm Amara Walker. "Connect The World" with Becky Anderson is next.

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