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CNN International: Biden Meeting With Netanyahu And Families Of American Hostages; Trump Attacks Harris Over Policy, Personality, Intelligence; U.S. Economy Grows At 2.8 Percent Annual Rate In Second Quarter; ISIS-Linked Groups Pose Security Threat Ahead Of Olympics. Aired 3-3:45p ET

Aired July 25, 2024 - 15:00   ET

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

[15:00:31]

ERICA HILL, CNN INTERNATIONAL HOST: It is at 8:00 p.m. in London, 9:00 p.m. in Paris, 12:00 in Los Angeles and 3:00 p.m. here in New York.

I'm Erica Hill. Thanks for joining me today on CNN NEWSROOM.

U.S. President Joe Biden currently meeting with Israeli Prime Minister Benjamin Netanyahu with the families of American hostages held in Gaza set to join them soon. According to one senior Biden administration official, a ceasefire and hostage deal may be on the cusp, but that official though noting it is, quote, up to the Israelis to accept it.

Nearly ten months into this war against Hamas, Netanyahu is under increasing pressure to accept a deal. The Hostage and Missing Families Forum slamming his address to Congress on Wednesday afternoon saying, quote, the speech and applause won't erase the one sad fact. The words deal now were absent from the prime minister's address.

After Netanyahu speech, the IDF announced it had retrieved the bodies of five hostages from Khan Younis. The prime minister is also scheduled to meet today with vice president and now presumptive Democratic nominee, Kamala Harris. That's set to happen in the next hour and tomorrow, he'll be meeting with former President Donald Trump in Mar-a-Lago.

CNN's chief national security correspondent Alex Marquardt joining me now.

So, Alex, in terms of this potential deal, where do things stand right now?

ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Well, we've heard so many times, things are close. Everything's looking optimistic, but right now, we are hearing some of the most positive language that we have heard since the last pause in the fighting ended in late November. This is as close as we've ever been, according to John Kirby, the National Security Council spokesman. He said that at the podium just moments ago, emphasizing the need for both sides to make compromises.

As you just noted, the hostage families disappointed that there was no announcement of a deal and that Netanyahu's speech to Congress just yesterday, the White House has said in the days leading up to these meetings, both with President Biden and Vice President Harris that the administration will use this opportunity to engage with Netanyahu, and essentially get him across the line.

We've got some great new reporting from MJ Lee, our White House correspondent, who says that the U.S. does firmly believe that the ball is in Israel's court. We do know that Hamas has made some compromises in the past few weeks. We do know that there are a lot of details that still need to be hammered out on both sides but that the U.S. is hoping that they can get Netanyahu to a place where he could agree to a ceasefire.

Now I learn just yesterday that the main mediators in these discussions -- Qatar, Egypt and the Egyptians and the U.S. led by the CIA Director Bill Burns, they are working on a new round of meetings that could take place early next week with location to be determined, that would be a very good sign. So that's what we're trying to figure out.

So watching very closely both these twin meetings with Biden and Harris, meeting with Netanyahu to see if they can get him to a place where a ceasefire could be within reach -- Erica.

HILL: I wish it will be key. So, as we watch that, we'll continue to watch for developments out of that. And, of course, later this afternoon, really interesting to hear, too, what the readout is from that meeting with the vice president.

Alex, appreciate it. Thank you.

Joining me now to discuss further, Alon Pinkas, who is the former Israeli general console here at -- general -- consul general, pardon me, here in New York.

Good to see you today.

As we look at where the stance is, Alex, just noted it's some of the most positive language that he has heard coming out of these meetings. John Kirby just saying we're as close as we've ever been.

Do you think this is a deal that will ultimately get done?

ALON PINKAS, FORMER ISRAELI CONSUL GENERAL IN NEW YORK: I don't know because we've been in this scenario to many times to get our hopes too high and to be realistic. There are still hurdles out there.

Now I don't know if you've noticed, I didn't know if Alex notice. This is probably the first time that the U.S. administration, the Biden administration officially says that the ball is in Israel's court until now it was either up to Hamas or both sides need to make hard choices. Both sides need to make difficult cold decisions. Both sides need to come to terms with the -- with the plan.

But it's never been honored in such clear words that the administration believes it is in Israel's court and I think that was said purposely with the intent to pressure Mr. Netanyahu. He is Erica also under immense pressure here in Israel from both the military, the intelligence agencies, and so on. So we'll have to see.

[15:05:01]

HILL: You know, as you point out, nothing is said publicly without some thought to it ahead of time. So the fact that that is being put out there, that the ball is now in Israel's court, is significant, I guess the real question though is will Benjamin Netanyahu take that with him? Will he take that cue and is there any sense to your point, it's hard to know, but is there any sense he will?

There's such criticism, right, that he is not actively moving towards a deal, that there was not a focus of the speech yesterday.

PINKAS: That's right. He did not even mention a hostage deal yesterday in that speech, not to -- not to mention a ceasefire.

He's -- he's ignoring it. He's ignored it in the speech and he's been ignoring it for the better part of the last six months.

Now, it's important to keep it all in the context of the document or the plan itself, Erica. There are three phases. Lets -- I'm not going to dwell on the details and bore the viewers, here, but we're only talking about the first phase. The first phase calls for a partial exchange of hostages for Palestinian terrorists jailed in a jail, a 42-day, i.e. 6-week cessation of hostilities and a tactical or local rearrangement of Israeli forces, not to say withdrawal.

But there's a second phase and the second phase is the permanent ceasefire. And that's supposed to take place 42 days later. So why am I -- why am I boring you with these details? Because Mr. Netanyahu can say qualified yes to the first phase at a bunch of conditions and stipulations, say that this is a historic moment, and just expect slash hope slash predict that Hamas will violate the first phase. Therefore, he's exempt from following through on the second.

So I don't want to be a party pooper. I don't want to be sound pessimistic, but we've been in this situation several times in the last few months. And so, you know, seeing is believing here.

HILL: Yeah. I -- absolutely and I think you are hearing that two from a number of people as well. Let's believe it when it actually happens.

It's fascinating to me that you -- we're seeing not just these comments right from the Biden administration, but even former President Trump. We know they have a meeting set for Mar-a-Lago tomorrow.

Former President Trump calling into "Fox & Friends" this morning, and really giving a little bit of a preview, I think of what some of his comments may be to the prime minister. Take a listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, FORMER U.S. PRESIDENT & 2024 PRESIDENTIAL CANDIDATE (via telephone): He's coming to see me. I want them to finish up and get it done quickly. You got to get it done quickly because they are getting decimated with this publicity, and, you know, Israel is not very good at public relations. I'll tell you that.

(END VIDEO CLIP)

HILL: You've got both Trump and Biden essentially saying, hey, it's time to wrap this up. Of course, Joe Biden would love for this understandably to happen under his administration. But the fact that they are in some ways on the same page, going into both of these meetings with the prime minister is fascinating in itself.

PINKAS: Well, I got to tell you, it's not exactly the same page because Trump being Trump, as all these infantile grudges, one of which is against Mr. Netanyahu, and he'd rather see this done before he becomes president, which he believes he will January 20. So, he's unhappy with this.

Secondly, if you noticed what he said at the end of that excerpt that you just showed that Israel has really bad P.R., that's -- that's a -- that's a direct stabbing of Netanyahu because Netanyahu was all about P.R. This is his claim to fame. He's the one-trick pony.

For him, it's all about speeches and P.R. And for Trump, his soulmate, his bro, down in Mar-a-Lago, to say Israel's really bad at PR, that's a direct hit, right between Netanyahu's eyes.

So, no, I don't -- you're right that they're on the same page in terms of the bottom line, get this done, get this over with, let's proceed with a ceasefire and a hostage deal. Other than that, I think Trump is coming to this from a completely different angle.

HILL: You in a piece for "Haaretz", you -- look, you slam to the prime minister's visit and his address. Basically as a PR move on, I'm paraphrasing there. You didn't even call it a P.R. move, but I would say that's sort of what it amounted to. But you also called the address sanctimonious and cliche-ridden, noting that Netanyahu looked like a small leader at a historic moment.

He's also said that Israel will fight by itself if it needs to.

PINKAS: Yeah.

HILL: In this moment, was anything gained for not just Netanyahu, but for Israel in terms of this visit and this address, and frankly these meetings?

PINKAS: Nothing. Nothing tangible, nothing concrete, nothing -- nothing that so-called deliverable. By the way, the small man in a big historic moment is Tom Friedman from "The New York Times". I would say --

HILL: Sorry, you were quoting Tom Friedman. Yes.

PINKAS: I was going to -- I got to give him credit.

[15:10:00]

Otherwise, I'll get an angry (INAUDIBLE). This is from Tom Friedman's column from yesterday.

No, look the speech was, you know, a vanity spree. It was -- it was all about, you know, Israel's trend.

Look, the prime minister, not only did not mention a ceasefire and a hostage deal. He did not take responsibility for the worst debacle, the worst calamity the worst day, in fact, in Israel's history. He's just an innocent bystander. You know, he sees a pundit. He's talking like you and I talking now.

This was on his watch. This is what Biden and Trump are basically telling him each in his own style and tone.

HILL: Alon, it's great to have you here this afternoon. Appreciate the time. Thank you.

PINKAS: Thank you, Erica.

HILL: Well, President Biden's Oval Office address in which he formally ushered in the next phase of the 2024 presidential election, of course, leading to some official campaigning at this point, the competing messages from Vice President Harris, and former President Trump, that's ahead.

(COMMERCIAL BREAK)

HILL: On the heels of a historic passing of the torch, Vice President Kamala Harris today, swiftly moving into campaign mode, mode launching a new ad, speaking to a National Teachers Union in Texas, then making her way, of course, back to Washington where she's set to meet with the Israeli prime minister this afternoon.

Meantime, all of that coming on the heels of what was a very bittersweet night at the White House on Wednesday, staffers lining up, you see them walking in there to watch President Biden's Oval Office address as he spoke about why he would not seek reelection. Somber, reflective remarks that in classic Biden fashion, brands with praise for the country, for the American people, but also feature his concerns for the future of democracy.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: I believe my record as president, my leadership in the world, my vision for America's future, all merited a second term.

[15:15:05]

But nothing, nothing can come in the way of saving our democracy. That includes personal ambition.

So I've decided the best way forward is to pass the torch to a new generation. It's the best way to unite our nation. (END VIDEO CLIP)

HILL: After the speech Biden joined family and staff and the Rose Garden where they enjoyed the president's favorite, ice cream.

For his part, Donald Trump on Wednesday unleashing a lengthy tirade against his new opponent at a rally in Charlotte and continuing in a phone interview this morning on Fox.

For more, let's go to our reporters on the campaign trail.

Eva McKend is covering the Harris campaign. Alayna Treene, covering the Trump campaign.

Good to see you both.

Eva, I'm going to start with you here. So full campaign mode, I think it is appropriate to say at this point we saw, of course we saw it in earnest starting early this week. But today, a little bit different, kicking things off, of course, with that new campaign ad.

EVA MCKEND, CNN NATIONAL POLITICAL CORRESPONDENT: That's right, Erica. You know, she is really framing this contest about freedoms, saying that people should have the right to be free from gun violence in their communities. People have the right to have reproductive choice. And she's saying that Trump is antithetical essentially to freedom, and that if he wins a second term, that Project 2025, which is the conservative policy vision that has been outlined, of course, he's distancing himself from that, but many of the people associated with Trump linked the Project 2025, but that would compromise people's basic rights. Take a listen.

(BEGIN VIDEO CLIP)

KAMALA HARRIS, VICE PRESIDENT OF THE UNITED STATES: Project 2025 is they plan to return America to a dark past. Donald Trump and his extreme allies want to take our nation back to failed trickle-down economic policies.

(BOOING)

HARRIS: But we are not going back. We are not going back.

(CHEERING)

(END VIDEO CLIP)

MCKEND: And I can tell you, Erica, from being out with her on the campaign trail that this is really resonating with a lot of Democratic voters. They were worried that President Biden couldn't forcefully fight fire with fire, and really bring a strong message in opposition to Trump. But they believe her as a former prosecutor against Trump, a convicted criminal, is a strong matchup.

HILL: So we see her starting to lay out that messages. On the other side, Alayna, we are seeing Donald Trump, who of course, when he kicked off that rally yesterday said, oh, you know, people thought I was going to be nice after I got shot. Meh, I'm not going to be nice anymore. Let's not be nice.

He is really laying in on the attack front. But Republicans are also struggling to find the best attack when it comes to going after the vice president.

ALAYNA TREENE, CNN REPORTER: That's exactly right.

And look, I mean, this was his North Carolina rally was his first such rally since not only Joe Biden ended his campaign over the weekend, but since Kamala Harris has really become what seems is going to be her his opponent this fall.

And so what Donald Trump was trying to do last night was define her and test drive some of the attacks that I know his team has been work- shopping behind the scenes and, look, he repeatedly attacked or argued actually, he spent the majority of that very lengthy speech attacking the vice president. He called her lyin' Kamala, although he repeatedly mispronounced her name. He argued that she is a radical liberal, trying to paint her as far more liberal than Joe Biden.

He specifically went after her on policies relating to immigration, the border, and abortion, and also claimed that she is somewhat of a mastermind behind many of Joe Biden's policies.

I want you to take a listen to what some of what he said.

(BEGIN VIDEO CLIP)

TRUMP: So she was the border czar, but she never went to the border, right? So think of it, they get me to that position and then the campaign says, I'm the prosecutor and he is the convicted felon. That's their campaign.

Lyin' Kamala is also a total radical on a word called -- you know this, right? A word called, what? Abortion.

She is a threat to democracy, a true threat to democracy.

You've been terrible at everything you've done. You're ultraliberal and we don't want you here. We don't want you anywhere.

Kamala, you're fired. Get out of here.

(END VIDEO CLIP)

TREENE: Now, Erica, a few things I just want to point out there.

One, when he said that she is the borders czar for Biden, that is just not the case. She had been put in charge of handling diplomatic relations with Central America. Of course, the responsibility of the border falls under the Department of Homeland Security.

He also claimed that she never visited the border. She did in June of 2021. So, just a couple of things to note there. But I do want to point out what he also said later in that clip, which

is about how he believes Harris is trying to define him, this idea that she is a prosecutor and that he is a convicted criminal.

[15:20:01]

He argued later in that rally that he doesn't think voters will buy it.

But look, I think to your point, which is that a lot of people still do not know how to attack her. That is very much true. I know that from my conversations with Trump's advisers, you know, they had spent over a year on modeling, on data, on a playbook design to go after an unpopular 81-year-old man.

Now, they're really grappling with what does it mean to go after someone like Kamala Harris and I think it'd be very interesting for us to watch how some of these attacks change over the next few weeks as they continue to workshops some of that behind the scenes.

HILL: It certainly will and it will be interesting to watch if he continues to mispronounce the vice president's name on purpose which he has done for years. That also seems to be something that they're working with, which is fascinating in itself.

Alayna, Eva, great to see you both. Appreciate the reporting. Thank you.

Joining me now to discuss further, Republican pollster and focus group expert, Frank Luntz.

Frank, nice to see you this afternoon.

When we look at where things stand, the polling is early, obviously, this matchup is new, but CNN's poll conducted this week shows an overall similar picture, right? Of this Trump Harris matchup when similar to Trump-Biden, you're seeing Donald Trump leading this poll by three points, but that's within the margin of error. So, no clear leader there.

And just a few minutes ago, "The New York Times" put out a poll which shows up similarly narrow race. As you look at this and how each candidate is trying to define both their campaign and their lanes, and their opponent, where do you see the strengths and weaknesses for Harris and Trump?

FRANK LUNTZ, POLLSTER: So, first, I don't look at the national numbers. I don't mean to undercut CNN or "The New York Times", but we don't vote by popular vote. We vote by Electoral College. So I'm following it only by state.

HILL: Uh-huh.

LUNTZ: Second is I'm looking at those key states to see where their numbers have gone and some of the state polling is going to take week before we figure that out. Third is that Harris has a chance to choose a vice president to take

one of these key swing states completely off the table. Georgia, North Carolina Michigan, Pennsylvania, Arizona, all have governors or senators, Democrats, that could be paired with her and if those candidates are chosen as VP, that say there's no longer a swing state.

In the end, Trump has been doing well because of the Latino vote in Nevada and in Arizona, because he's been able to get some young Black male vote in Georgia and in North Carolina and the union vote in Pennsylvania, Wisconsin, and Michigan.

We have to rethink everything. Harris has a much higher ceiling than Trump than -- sorry, than Biden does. But she also has a lower floor. So she can do much better than Biden was doing, but she could do worse as well.

So I'm watching to see who's presenting and nobody is right now, who's presenting a positive vision for what they're all about, because in the end, you can hammer the opponent. But it's not just voting against someone, you have to give them a reason to vote for someone to ensure that your voters actually turn out on election day.

HILL: So in terms of voting for, I think, I think you make a great point, right? Harris launched this new campaign ad this morning. She's using Beyonce song "Freedom". There's been a lot made about that, that Beyonce said, it is yours for the duration of the campaign.

She is framing that as I am a choice for freedom for you to hold onto your rights, whether those rights involve your own body and reproductive and health care, whether they involve gun violence and how you feel about your own safety.

Do you view that as a positive selling point like I'm the one who's going to allow you to continue to do those things. Does that meet your criteria?

LUNTZ: Yes, it does. And in fact, it's a very good choice, very good choice of issues and framing, because Americans wanted -- they may not want to make the choice, but they want to have the right to make the choice. And for her to be on the side of freedom normally you see Republicans on the side of freedom, Democrats and aside have equality and justice.

It's a very smart strategic move for her to try to take one of Trump's issues. Now, it's -- the question is when they start to go at each other, ad for ad, message for message, and which ones going to be stronger?

I -- I have to take issue and I'm being very straightforward because I absolutely want to be accurate, and I want to be truthful. She was given the responsibility for immigration. The president said in their press releases about it, and there White House statements about it, Vice President Harris was given the responsibility for coordinating immigration out of the White House?

Yes, it is, part of homeland security, but she was specifically put in charge and she did not have a sense.

(CROSSTALK)

HILL: I'm going to interrupt you, Frank, I need to interrupt you just for one moment here.

Let's listen to the vice president.

HARRIS: They agreed to that previously, now he appears his backpedaling but I'm ready. And I think the voters deserve to see the split screen that exists in this race on a debate stage.

[15:25:06]

And so, I'm ready. Let's go.

REPORTER: Will you do it on Fox?

REPORTER: Do you have a comment on the protests yesterday?

HILL: So, the vice president, of course, just landing there at Joint Base Andrews, making her way -- she's been making her way back to Washington where she is set to meet with Prime Minister Benjamin Netanyahu this afternoon. She was campaigning earlier today in Texas, speaking with the American Federation of Teachers.

You just heard there, Frank, she was asked specifically about the debate and about whether she wants to debate President Trump. She said she is ready. She plans to do it.

A question shouted because we know the Trump campaign is now pushing for this to be on Fox, not an ABC. But she said she is ready. She wants that split screen moment.

That will be a far different split-screen moment than what we saw just a few weeks ago with the president and the former president.

How much is riding on that debate?

LUNTZ: Everything. I know I have a small screen here because if I was sitting with you are basically at my hands out here, everything.

The final judgment -- and there was only 4 percent are undecided when Biden and Trump debated, and Trump's so clearly won that -- let me rephrase that, Joe Biden so clearly lost that debate and that was the beginning of the end for him. It just took a matter of weeks for people to say he needs to step aside.

With Harris, that debate will determine in the end that 6 percent who is undecided and that's going to determine the election. It is game, set and match and I think that she's a better debater than Joe Biden, even though he's got more experience.

But I -- again, I have to remind viewers, she debated Joe Biden in 2019. It did not do spectacularly. In fact, she raised a whole lot of money and didn't even make it to the very first primary in the Democratic battle for the nomination.

So I think it's going to be the most significant debate of my lifetime, of your lifetime. And I believe you're going to add an audience of 70 or 80 million people to watch.

HILL: How do you see? We only have about a minute left, but how do you see each candidate setting themselves up over the next several weeks, leading into that September debate.

LUNTZ: So let's be candid. Donald Trump has the discipline -- has no discipline. I wanted to come up with a metaphor. There isn't any.

He simply cannot not attack her. So that's just going to be the way that it is. She's going to be more strategic in her attacks which he's going to have to get over an image.

Her polling was horrible as vice president. She was the most unpopular vice president for 40 years. Now her numbers have improved considerably, but she's got to overcome that as well.

And most critically, they have to have an agenda for the future -- a detailed plan of action for what they're going to do in the first 100 days, and the first year. We do not vote based on what we've done.

We vote based on what we will do. And that's for both candidates to design and to present to the American people before that debate.

HILL: Frank, good to talk to you as always. Thank you.

LUNTZ: Thank you.

HILL: Well, Hollywood, quickly embracing the change at the top of the Democratic ticket. George Clooney, who, of course, had called for Joe Biden to step down at a "New York Times" op-ed not long after co- hosting a fundraiser for him is now hardly backing the Harris campaign, along with Barbara Streisand, Jordan Legend, Spike Lee, Beyonce also blessing the campaign's use of her song, "Freedom", which as we mentioned, is now being used in the Harris campaign's very first ad, which launched today.

(BEGIN VIDEO CLIP)

HARRIS: We believe in the promise of America, and we are ready to fight for it. Because when we fight, we win.

So, join us, go to KamalaHarris.com, and let's get to work.

(MUSIC)

(END VIDEO CLIP)

HILL: CNN's Elizabeth Wagmeister joining me now.

So, Elizabeth, you had previously reported, Hollywood was really wary at that point about backing Biden's reelection. Times have changed with Kamala Harris at the top of the ticket. ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT: Times have absolutely changed really overnight. Hollywood is rallying behind Vice President Kamala Harris. And I spoke to a producer who told me that he hasn't seen this much excitement in the entertainment business since Obama's first speech.

So that says a lot because obviously, the Obama years were very celebrity-friendly years. Now, you mentioned some of the a-list stars up top who had been backing Harris. And what we're also seeing is a lot of younger stars.

Now why this is going to be key is because Gen Z, we will have a lot of first-time voters in this race. And the sources that I'm speaking, too, both in the entertainment industry and close to Harris's campaign, they know that it is essentially a race to Gen Z. How do you get them off TikTok and get them into a voting booth?

Well, now we have seen people like Ariana Grande, who has 378 million followers on Instagram, Demi Lovato, and, of course, Charli XCX, the pop star, who really caused Kamala Harris to go viral with her tweet, Kamala is brat.

[15:30:13]

HILL: There's also -- look, there's been a lot made of these comments that J.D. Vance, who, of course, now is the GOP nominee for vice president. Comments that he made in 2021, calling Harris one of the, quote, childless cat ladies who are miserable at their own lives, that prompted a lot of questions about one of America's best loved childless cat ladies, Taylor Swift, whether she would say anything.

But it's also prompted some serious -- some more serious reaction from Jennifer Aniston, for example, speaking out about those comments, not going so far as necessarily throwing her weight behind the vice president's presidential bid, but making it very clear that those comments were unacceptable.

WAGMEISTER: Yes. Last night, Jennifer Aniston taking to her Instagram story to say that she couldn't believe that these comments were coming from a potential future vice president of the United States. I want to read you some of what she said here, Erica.

Jennifer Aniston wrote, quote: All I can say is Mr. Vance, I pray that your daughter is fortunate enough to bear children of her own one day. I hope she will not need to turn to IVF as a second option because you are trying to take that away from her, too.

So there very clearly, Jennifer Anniston talking about his stance on reproductive rights at his far right stance, and Jennifer Aniston is someone who is very private, even though she's one of the biggest stars in the world, she rarely speaks about politics.

But back in 2022, Erica, she did open up for the first time about her fertility struggle. She said that she unsuccessfully tried IVF. So this is coming from a personal place and striking a chord with a lot of women around America. HILL: Yeah, it certainly is, and we've seen, of course, the vice

president's stepchildren and their mother come out praising Kamala Harris as well and her family and her role as a stepmom.

Elizabeth Wagmeister, great to have you this afternoon. Thank you.

Take a look at some business news on this Thursday, the world's largest economy making major gains in the second quarter, blowing expectations out of the water as the U.S. economy expanded 2.8 percent.

CNN's Paula Newton here to break it down.

So, Paula, the news comes, of course, as interest rates remain high, which is raising questions about why what that could mean for any potential Fed rate cuts. Overall, though, I mean, this was a pretty exciting report.

PAULA NEWTON, CNN CORRESPONDENT: Absolutely, because it blew away expectations. We knew the economy was strong, but we didn't know how strong, right? And when you look at the chart here, given the growth that has been happening over the last few quarters, this is very impressive. Again, this measured economic activity between April and June, so that second quarter of 2024, very impressive, in fact, doubling what it was in the first quarter of the year. You see it there.

And this was an almost every sector, Erica. I mean, incredible to think about the fact that just consumers, businesses, everyone just kind of ante up and was feeling good about this economy. Some had expected, the consumers would kind of pull back. They have slightly but not to any extent, that economists thought they might, especially given the fact that generationally, we are seeing the highest interest rates and we have seen in more than 20 years.

That is the key now, in terms of what happens in the coming weeks. Will interest rates go lower?

HILL: And what is the sense there?

NEWTON: I want to get to first, the issue of the guessing game, right? A lot of people already saying that, look, July is out there actually meeting next week. I don't think we expect that but certainly in September there is a chance that will go down by much, but by a quarter point.

Of course, the White House is watching all of this carefully. I know you've been given a lot of political talk in the last few minutes. We do want to go to the White House statement. You cannot blame Kamala Harris and the president for taking a victory lap on this one.

And they say today's GDP report makes clear that we have the strongest economy in the world, thanks to my -- and my -- and Vice president Harris's economic agenda. Our economy grew a robust 2.8 percent of the last quarter, based on strong American consumers and the business environment. But here's the thing. Erica, to so many Americans, they described the

fact that look, I'm feeling good now, but it is not as good as perhaps the numbers indicate, and it is that fragility in the American economy that Kamala Harris will really have to address in the coming weeks.

HILL: Yeah, it's something Democrats have not figured out how to address, is how people actually feel. So it will be interesting to watch that.

Paula, appreciate it. Thank you.

Just ahead here, the terrorism threat is looming over the Olympic Games, which, of course, officially begin tomorrow. How groups like ISIS are recruiting and growing as officials attempt to protect the Paris Games.

(COMMERCIAL BREAK)

[15:38:37]

HILL: The opening ceremony for the Paris Summer Games is now less than 24 hours away. And as a world gears up to cheer for the athletes, officials are monitoring the potential threats that come with an event of this magnitude.

CNN's Nick Paton Walsh (INAUDIBLE) how terror group ISIS is actually making a resurgence with the help of social media ahead of the games.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice-over): Once battered but now flourishing in the shadows, ISIS seemed crushed in Syria. But ahead of the French Olympics, extremism experts are seeing a troubling resurgence.

One disturbingly targeting teenagers using social media platforms like TikTok to recruit. According to a landmark study by researcher Peter Neumann, nearly two-thirds of ISIS-related arrests in Europe in the past nine months have been of teenagers.

PETER NEUMANN, PROFESSOR OF SECURITY STUDIES, KING'S COLLEGE LONDON: We're also seeing groups like ISK, Islamic State Khorasan, specifically targeting young teenagers and a lot of these young teenagers, they may not be very useful.

They may mess up. They may change their mind. But at the end of the day, some of them may actually be quite useful, not least because they are less suspicious.

Who would think of a 13-year old as a terrorist?

WALSH: This study collates public data on the arrests, some startling. Two teens, age 16 and 18, arrested in April and May for plots on the Olympics, one with a bomb belt.

[15:40:03] A 14-year old on a mall, a 15-year old on a synagogue, and a 15- and 18-year old plotting together.

Germany, too, made arrests of an 18-year old for a knife attack plot and also three teens, age 15, 15 and 16, for an ISIS-inspired plot.

NEUMANN: So ISK is by far the most ambitious and aggressive part of ISIS right now. They are trying to target young people on the internet with a lot of social media outrage that we've seen.

A lot of platforms like TikTok, especially, attracting younger people, teenagers, young teenagers, almost through algorithmic amplification, drawing them into bubbles.

WALSH: TikTok said they stand against violent extremism and take down 98 percent of terror promoting content before it's reported to them.

The new reach of ISIS' remnants emerges as their latest offshoot, ISIS-K, originally based in Afghanistan, becomes increasingly focused on the West and powerful in nearby Turkiye. A U.K. security source telling CNN the so-called directed terror threat plots instructed by remote from afar have become a greater concern over the last 18 months with ISIS-K, the most potent group under scrutiny.

ISIS-K reappeared violently in Istanbul earlier this year with this brutal attack on a Catholic Church. And Turkish court documents seen by CNN portray a vast network of ISIS-K radicals in the city.

Some detainees from a plot to attack the Swedish consulate describe how they got orders from ISIS-K's external operations chief, known only as Rustam, hiding in the Pakistan-Afghanistan border area.

One said how Rustam deletes his Telegram messaging accounts every 15 to 20 days as a precaution after he would contact me with another username.

Turkish police have launched a vast wave of raids against ISIS-K, one shown here. Last year alone, saying 426 ISIS suspects were arrested in 122 operations. Yet ISIS-K's ambition grows with experts fearing they seek to make their brutal name and that the red lights of terror are blinking again.

Nick Paton Walsh, CNN, London.

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HILL: And our thanks to Nick for that reporting. In terms of the Olympic Games, you can be sure to join CNN tomorrow. We've got some special programming for you, "Aiming for Gold" airs on Friday at 7:00 p.m. Paris time, 1:00 p.m. here in New York, and you do not want to miss that.

Stay tuned. We're going to take a short break here. For our international viewers, living golf is next. If you are strip grieving us on Max, we'll be back with more news after this short break.

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