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Harris Must Choose a Running Mate Soon; Trump's New Lines of Attack on Harris at Georgia Rally; Trump Urges Harris to Agree to Fox News Debate; Countries Urge Citizens to Leave Lebanon; Iran Threatens "Blood Vengeance"; Florida Prepares for Tropical Storm Debby; U.S. Economic Confidence; Katie Ledecky Wins Fourth Consecutive Gold in 800M; Simone Biles Wins Gold in Individual Vault; Ukraine Claims It Sank a Russian Submarine; Dozens Arrested in Violent Protests Over Southport Stabbings. Aired 4-5a ET

Aired August 04, 2024 - 04:00   ET

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

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[04:00:00]

KIM BRUNHUBER, CNN ANCHOR: Welcome to all of you watching us here in the United States, Canada and around the world. I'm Kim Brunhuber. This is CNN Newsroom.

It's getting close to decision time for U.S. Vice President Kamala Harris as she must choose a running mate soon. We'll look at who tops her list.

More and more countries are urging their citizens to leave Lebanon as fears of escalation in the Middle East intensify.

And people in Florida are getting ready for Tropical Storm Debby. It's expected to reach hurricane strength before making landfall.

ANNOUNCER: Live from Atlanta, this is CNN Newsroom with Kim Brunhuber.

BRUNHUBER: We are now in the critical final hours of Kamala Harris' search for a running mate, a decision she has to make by Tuesday. A source is telling CNN Harris will interview top candidates, Pennsylvania Governor Josh Shapiro and Arizona Senator Mark Kelly in the coming hours. Harris is also expected to speak with Minnesota Governor Tim Walz. Sources familiar with the selection process say there's been a renewed focus on him. The Harris campaign is having to move at lightning speed. And CNN's Edward-Isaac Dovere breaks it down for us.

(BEGIN VIDEOTAPE)

EDWARD-ISAAC DOVERE, CNN SENIOR REPORTER: Let's remember, first of all, that two weeks ago, right now, Joe Biden was still in the race. Kamala Harris was the running mate. This is a process. And that itself is having a determinative effect on what's going on. There's a piece up on our site right now that I -- where I write that leaps of faith are not Kamala Harris' style, but she is going to have to make one, at least to a certain extent in this decision.

She's looking at who can help her win. She's thinking about a governing partner. She's thinking about what kind of rapport she'll have with the person. But all of that needs to be done along with all the vetting, about all the past business transactions, all the personal affairs, anything that they've ever done in their lives, all in a period of just a couple of days here, right? And in maybe one or two meetings that Harris herself will have with the final picks.

And importantly, she does not know any of the picks that well, and the one that she does know that has spent the most time with, Pete Buttigieg, that relationship has been a little troubled over the years, but it's gotten a lot better lately. So, she's having to do this all very quickly and figure out where she is.

This is not something that ever is done over a two-week period. And even for the people who have been trying to put together the documents on the side of the potential running mates that takes a long time. Go get all your financial records for the last 10 years or 20 years or 30 years. See how quickly you can do it, right? And that's just one piece of it.

So, it's a lot of the information that needs to be compiled quickly, gone through quickly, trying to not have anything that blows up on them. There's a feeling that if you look at J. D. Vance's rollout and some of the trouble that he's had on the Republican side, that is the kind of thing. It's sort of best-case scenario when not enough is done. But obviously, we've seen in the past sometimes when running major pick that there can be bigger things that aren't caught in the vetting process.

That's why usually this is a fine-tooth comb that they go through, months of questions, of interviewing lots of people and anybody who has ever had any contact with the potential running mates. That is not what they have the option of doing here.

(END VIDEOTAPE)

BRUNHUBER: Donald Trump says his campaign needs to update its messaging now that it's no longer running against President Joe Biden. But as CNN's Alayna Treene reports, he's still hurling personal insults at his rival.

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ALAYNA TREENE, CNN REPORTER: Well, former President Donald Trump at a rally in Atlanta on Saturday tested out new lines of attack against Vice President Kamala Harris. And remember, Donald Trump is still trying to figure out which attacks work the best against her.

At one point in that speech, he even said the quiet part out loud and said, we need to define her. And then he caught himself and said, actually, I don't need to define her, going on to criticize her further. Take a listen to what he said.

(BEGIN VIDEO CLIP) DONALD TRUMP, FORMER U.S. PRESIDENT AND REPUBLICAN PRESIDENTIAL CANDIDATE: You know, four months ago she was considered grossly incompetent by the fake news. Now, they're saying, oh, isn't she wonderful? Isn't she wonderful? No, she's not wonderful. So, we have to work hard to define her. We -- I wouldn't even define her. I just want to say who she is. She's a horror show. She'll destroy our country.

(END VIDEO CLIP)

TREENE: Now, I found those remarks so notable because it really lines up with what I'm hearing from Donald Trump's senior advisers, which is that they have to create an entirely new playbook now that he is facing a new opponent.

[04:05:00]

Remember, they had spent the entire election cycle thus far focused on going after president Joe Biden. And so, they're really trying to work on what works with the crowd, what is the energy in the room when he delivers those types of attacks. And we saw that the. on Saturday night.

Now, I will note Donald Trump did argue that he found Harris' speech and rally earlier in the week also in Atlanta, Georgia, not even just in the same city, but at the exact same venue, he criticized that she had celebrity performers like Megan Thee Stallion perform. He said that he thought that was phony. That is a line I can tell you from my conversations with Trump's team that he is planning to use in the coming weeks in an effort to frame her.

He also tried to tie her to his former political opponent, Hillary Clinton. He said he would never forget that Clinton also had celebrity entertainers name dropping Bruce Springsteen and saying that he has a bad trait. He only likes people who like him.

Now, another thing I want to point out that I found interesting was that he repeatedly went after Georgia's Republican governor, Brian Kemp, as well as the state secretary of state, Brad Raffensperger. Remember, they were both key to trying to deny reports of fraud during the 2020 election. Trump repeatedly called them disloyal.

And I also will note that Kemp, meanwhile, even though he said he wasn't supporting Donald Trump in the primary, he did ultimately say he would support him in November.

Alayna Treene, CNN, Atlanta, Georgia.

(END VIDEOTAPE)

BRUNHUBER: It seems Kamala Harris is planning to show up for the previously agreed upon ABC News debate even if Donald Trump doesn't. Responding to Trump's ABC debate exit, Harris said in a tweet, it's interesting how anytime any place becomes one specific time, one specific safe place. Meanwhile, Trump says he'll see Harris on September 4th at a Fox News debate, or not at all. Trump claims his rival doesn't have the mental capacity to do a quote, real debate against him.

All right. I want to bring in Natasha Lindstaedt, who's a professor of government at the University of Essex, and she joins us now from Cochrane, Germany. Thank you so much for being here with us. So, I want to start there with the debate. So, who has the most to gain from a debate, do you think?

NATASHA LINDSTAEDT, PROFESSOR OF GOVERNMENT, UNIVERSITY OF ESSEX: Oh, Kamala Harris. I mean, she will eviscerate Trump in a debate. She is excellent at debating. She's a trained prosecutor. We've seen the way she's asked questions to for -- you know, the Supreme Court, Justice Brett Kavanaugh, or Former Attorney General Jeff Sessions. She really will shine in the debate, and she did shine in the first debate, the first presidential debate in 2020 and didn't do quite as well afterwards, but I would imagine she'll be incredibly prepared, and it's less awkward for her preparing for a debate against President Trump versus trying to compete against other Democratic candidates in the primary.

Trump's debate style, as we know, is basically to just speak a bunch of lies and bully and overpower people, which he did effectively when he had to debate Joe Biden, who had a horrible performance, of course. But he knows that he will not do well against Kamala Harris, and that's why he's backing out of the debate and trying to change things so that it would be on Fox News, which is obviously a more like a media propaganda machine for the Trump campaign.

BRUNHUBER: Yes. So, then, by ducking the ABC debate, insisting on Fox, I guess that's sort of a poison pill. Donald Trump trying to make sure a debate doesn't happen. And if so, you know, Fox, a live audience, it would be on home turf, as you say.

LINDSTAEDT: Exactly that really wouldn't be very fair. It would be much better to have it on a neutral channel with the setup that they had when he debated Biden, where there was some sort of mute button, that enabled the debate to be a little bit more civilized. But he doesn't want to debate her because he doesn't really have any talking points and he doesn't know anything about policy.

BRUNHUBER: So, the other big story this weekend, the interviews going on for Harris's running mate, do you get a sense of who's most likely to be picked here?

LINDSTAEDT: So, I think she's going to pick Josh Shapiro from Pennsylvania. I think he's the front runner for a couple reasons. He just is going to help her so much with the electoral map. Pennsylvania is such an important state and that's one of the states where she's not quite ahead of Donald Trump in the polls. He's also an attack dog. He is an electrifying campaigner. And I think they have good chemistry.

Now, there are so many other good choices as well. We've been hearing about Tim Walz from Minnesota. He wouldn't help her as much with the electoral map, of course, but he's just so likable. And he's from, you know, rural America. He's a former school teacher. He's known as being a workhouse -- work horse in Congress. And he has gone viral for talking about Trump and his team. And talking about them as being weird and the way he speaks, he really connects with people.

[04:10:00]

You're also hearing about Mark Kelly, the senator from Arizona. He could help her also with the electoral map and help her maybe on the issue of immigration and he has just such a great resume as an astronaut. He probably wouldn't be as effective as a campaigner. But he is a moderate, and I think he would appeal to a lot of people.

BRUNHUBER: Turning to Donald Trump now. He was here in Atlanta for a rally. What do you make of the fact that, you know, here in this swing state, Trump was attacking the very popular Republican governor? I mean, that doesn't seem like great strategy, does it?

LINDSTAEDT: No, it makes no sense. I think the Trump campaign has just been totally caught off guard. They couldn't imagine that someone would do something magnanimous as Joe Biden did and step down. And so, they weren't ready. Also, for just all of the energy and excitement behind Kamala Harris' campaign. I mean, we were speaking about this weeks ago. Her approval rating wasn't particularly good. But now, he's sort of in a corner. And when he's in a corner, he tends to become completely unhinged and more angry than normal, and he starts even attacking those that might even support him going after secretaries -- the governor, Brian Kemp.

I mean, this all comes across as very petty. And he even admitted it. I only really like people that like me. He also criticized the deal -- the hostage deal swap, and said Putin should be congratulated. And then, he went into his normal sort of misogynistic attacks with racist undertones against Kamala Harris, you know, talking about her name and that there's 19 different ways to pronounce her name. And that's really all his campaign has to offer.

I mean, we know that he has. 46 percent support. This hasn't changed at all. He needs to gain people. He needs to be able to attract more voters, but he doesn't have a clear message. It's really all about himself. He's rambling on and on. And his talking points aren't uplifting, and you contrast that with Kamala Harris' talking points, she's been pretty effective talking about issues like health care, gun control, reproductive rights. This is juxtaposed with Trump's campaign, which is really moving the U.S. closer to dictatorship and is very dark and very personalistic.

BRUNHUBER: Yes, we'll see whether he refines that campaign now that he sort of gets a fuller grip on who he's running against exactly. We'll have to leave it there. Natasha Lindstaedt, thank you so much for speaking with us.

LINDSTAEDT: Thanks for having me.

BRUNHUBER: More countries are urging their citizens to leave Lebanon amid growing fears of a full-scale war breaking out in the Middle East. France has joined the U.S., Britain, and Jordan, urging their citizens to leave as soon as possible, while Sweden is now temporarily pulling out its embassy staff from Beirut.

Saturday night, Israel said it intercepted a barrage of 30 projectiles coming from Lebanon which didn't cause any damage or casualties. Hezbollah said it was responding to multiple Israeli strikes in Southern Lebanon earlier on Saturday, reportedly going after Hezbollah targets. A Lebanese news agency says one teenager was killed and six civilians wounded.

Now, that's happening after Iran threatened to retaliate against Israel for the killing of Hamas political chief -- Hamas' political chief in Tehran. Israel has neither confirmed nor denied responsibility.

All right. For more, Nada Bashir joins us now from London. Nada, so Hezbollah already firing rockets into Israel, presumably just a precursor to an actual main attack.

NADA BASHIR, CNN CORRESPONDENT: Yes, absolutely. That is certainly the warning that we've been hearing from the Iranian regime, the IRGC, the Iranian Revolutionary Guard Corps warning that there will be severe punishment, again, pointing the finger of blame squarely at Israel. They have said that there will be blood vengeance in the words of the IRGC.

So, there is certainly anticipation of a tougher response, beyond what we've been seeing over the last few months with regards to Hezbollah's attacks on Israeli territory, and of course that crossfire between Hezbollah and the Israeli military along Lebanon's southern border.

Now, we've been hearing warnings, of course, from members of the International Community, including one U.S. official who has warned that response from Iran could look like a variety of responses. On the one hand, we may see perhaps a direct response. We did see back in April, Iran targeting Israeli territory with drones and missiles, although we could also see a much larger, more complex response in coordination with Iran's proxies in the region, namely, of course, Hezbollah in Lebanon and Houthis in Yemen.

So, there is certainly high anticipation as to what that response will look like. And of course, Israel on high alert as well. As well others in the International Community. The United States bolstering its military preparedness in the Middle East as well, sending in warships and other further military capabilities in the region.

[04:15:00]

Of course, there is huge concern for the potential for this response to trigger a broader escalation across the region, to trigger an all- out war. We've been hearing warnings for some time now from the United States, for example, of Israel's potential to perhaps launch a ground incursion into Lebanon, or perhaps seeing airstrikes moving further north into Lebanese territory, even the capital, Beirut. So, there is certainly a huge amount of concern around that. Again, we are waiting to see the response. And despite the mounting tensions in Israel, we have seen still huge rallies taking place across multiple cities, calling on the Israeli government to settle a ceasefire deal to ensure the release of hostages. We saw tens of thousands taken to the streets in Tel Aviv for example, just yesterday.

So, certainly while there is that high alert atmosphere in Israel, still those protests are ongoing. But again, we've been hearing warnings from other nations telling civilians -- residents, rather, in Lebanon, for example, to evacuate immediately, including the U.S. and the United Kingdom. So, there is certainly a concern there for the safety of those in Lebanon.

And again, it's unclear how significant, how broad this retaliation, this response will be by the Iranian regime. They have vowed severe punishment. Again, Iran and Hamas both pointing the finger of blame for the assassination of Hamas' political chief Ismail Haniyeh on Israel. Iran also accusing the United States of backing Israel in this operation. But again, Israel has neither confirmed nor denied responsibility for Haniyeh's assassination.

BRUNHUBER: All right. And, Nada, briefly, you've been following some of the other stories as well, including a stabbing attack and the deadly Israeli strikes on a school and a camp for displaced Palestinians. What more can you tell us?

BASHIR: That's right. We're getting more information from authorities in Israel, a stabbing attack. At least two people said to have been killed just south of Tel Aviv. A 66-year-old woman and a man, according to emergency services, approximately 80 years old. At least two others injured in this knife attack.

The Israeli police officials say that they, in their words, neutralized the stabber, who they say was a resident of the West Bank. And of course, what we're also seeing in Gaza is a continuation of Israel's military onslaught. We saw deadly strikes yesterday targeting two schools near Central Gaza in Gaza City.

And today, overnight, we have seen the distressing images, video coming out of -- around the Al Aqsa Martyrs Hospital in Deir al-Balah. This is a hospital, one of the last few remaining that is able to take patients. It is on a daily basis, hugely overrun. But outside the hospital on the compound, there are countless tents for the displaced. And we've been seeing distressing images of those tents engulfed in flames. At least five people so far said to have been killed, many more injured as well, but we are still getting more details on that.

The Gaza civil defense says this was the result of an Israeli airstrike. We have put a question out to the Israeli military who said they are looking into those reports. But again, hugely distressing. This was an area known to be housing thousands of displaced civilians.

BRUNHUBER: Nada Bashir in London, thanks so much. All right. I want to head now to Berlin where we're joined by New York Times Chief Diplomatic Correspondent Steven Erlanger. Thanks so much for being here with us.

So, let's start with the Iranian response that we're waiting for. How different do you expect it to be from the barrage we saw in April in terms of the tactics, how long it might last and the potential to inflict even more damage?

STEVEN ERLANGER, NEW YORK TIMES CHIEF DIPLOMATIC CORRESPONDENT: Well, I think they're trying to get it right, because they do not want an all-out war with Israel. They do not want an all-out war with their proxy, Hezbollah. The fear is that if Hezbollah gets involved in a big way and Israel goes after Hezbollah, Hezbollah will use up its rockets and missiles and keep Israel underground for several months, but there will be disaster in Lebanon. And once the deterrent that Hezbollah represents for Iran disappears, the fear in Iran is that Israel will attack Iran, because Iran is a nuclear threshold state.

And for Israel, it looks at the tentacles around it, the Houthis, Hezbollah, Hamas, but it knows the head of the octopus is Iran. So, this is a big issue, and I think this is why Iran will be very careful to kind of calculate its response to damage Israel, but to damage it reciprocally and not open up the chance of an all-out war.

[04:20:00]

BRUNHUBER: Right. But I guess the question is, what would be reciprocal? I mean, trying to thread that needle, because presumably they would have to do some damage and then after that attack Israel would then respond and then we're into this cycle of retaliation that's so hard to pull out from.

ERLANGER: It's so hard to pull out from, and this is why the United States and Britain and other allies are urging all sides to utilize restraint, to be careful. We were nearly there before when Iran, in retaliation, sent hundreds of missiles over Israel. Now, they will advanced the war. And then, I think hit military targets. Not many people were hurt. No one died. But it was considered well judged.

Now, Iran could do the same with much less warning. It could overwhelm Israel's air defenses. But if it did that, the chance of big Israeli retaliation would be severe. So, they could go after military targets. They could try to assassinate an Israeli leader, which would be reciprocal. They could do lots of things, but that's the whole point they're trying to decide for themselves and keep everyone else guessing.

BRUNHUBER: Yes. You talk about other countries urging restraint because, you know, among the fears is that this could drag the U.S. into a wider regional war and President Biden has been calling for de- escalation, but it seems over the course of the war, at least against Hamas, that Netanyahu hasn't really listened, that President Biden hasn't had as much influence over Netanyahu's actions as you might think.

I want to quote from one of your recent articles, Israel appears to have gone rogue. Explain what you mean here. ERLANGER: Well, what I mean is that, as you summarized, Netanyahu isn't really listening. He came to Washington to give a very defiant speech. He then went to pay obeisance to Donald Trump, who he clearly wants to win the election. He thinks Biden is now clearly lay a lame duck figure, and Bibi is pushing his domestic audience to say, look, we need to restore our military deterrence. Look how clever we are in these assassinations. We are going to keep pressing in Gaza. We're going to continue to suppress Hamas in the West Bank.

And the problem is he's playing to a domestic government where he is dependent on these two far-right messianic religious, very clever ministers who he normally doesn't like, but who he's given incredibly powerful positions to. One, the finance minister and one, the police commissioner who have very, very strong influence over what happens in the police, the West Bank, and they represent a kind of revolting against conventional wisdom.

So, Bibi is presenting himself much in a way as Trump is as the leader of the anti-elite revolt that does not see a Palestinian State as possible, that talks about annexing the West Bank, that wants to resettle Gaza, and that has no interest in what most of the world says because it believes the world is against Israel anyway.

BRUNHUBER: Yes, we'll have to leave it there. Really appreciate your analysis. Steven Erlanger, thank you so much.

ERLANGER: Thank you.

BRUNHUBER: All right. Still to come. Florians prepare for Tropical Storm Debby. We'll have the latest on his path and how strong it's expected to be. That's coming up just ahead. Please stay with us.

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BRUNHUBER: Tropical Storm Debby is getting stronger and expected to make landfall along Florida's northern Gulf Coast as a hurricane on Monday. While North Florida remains in the crosshairs, parts of Southwest Florida are already feeling some effects from Debby.

Many communities have been getting ready for days ahead by filling up sandbags, as you can see, to use in the event of flooding. Debby is expected to dump more than a foot of rain across parts of Florida and even more in Southern Georgia.

CNN's Meteorologist Allison Chinchar joins us now. Allison, a foot of rain, I mean, this sounds, you know, cataclysmic. Is that putting it too strongly?

ALLISON CHINCHAR, CNN METEOROLOGIST: No, because that could be the low end of what some states end up getting. So, yes, that's going to be more like the widespread totals that we get with some of those areas pushing two feet or even possibly 30 inches total. So, yes, flooding is certainly going to be the main concern with this particular storm. Now, here's a look at where Tropical Storm Debby is right now. Sustained winds of 45 miles per hour just off to the west of the keys and it's going to continue its way off to the north over the rest of today. So, here you can see the radar. We've already starting to see a lot of those outer bands begin to spread some of that moisture in and across Florida. That will become more frequent as the day goes by and obviously, spread farther northward.

Here's a look at that storm. Again, gradually expected to intensify as we go through the day today. It is expected to make it to hurricane status likely late tonight or very early tomorrow morning just before it makes landfall. But it's not going to weaken too much.

So, even if -- as it's maybe, say, east of Tallahassee still expected to have those Category 1 hurricane winds and then it finally starts to weaken considerably. But then notice this where it just kind of sits right here and doesn't really move. That's the problem. That's what's going to lead to a lot of the rainfall here because it sits and doesn't move and can provide a tremendous amount of rain.

Storm surge is also going to be a big concern, especially across the Big Bend region. You're talking six to 10 feet above that ground level. Even some of the surrounding areas, you're talking four to six feet of storm surge. But rainfall definitely going to be the big concern here. Widespread six to 15 inches of rain. And then, some of these areas could end up picking up 20 or 30 inches of rain total. Kim.

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BRUNHUBER: Wow. Folks are really going to have to prepare for that.

CHINCHAR: Yes.

BRUNHUBER: All right. Allison Chinchar, thank you so much. Appreciate that. Well, the Kamala Harris campaign has to make up for lost time, but she's not making any hasty decisions about a running mate. We'll see who she's still considering just days before the expected announcement.

Plus, well, it seems Americans don't have a lot of confidence in the economy right now, and neither does Wall Street. We'll look at why coming up. Stay with us.

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BRUNHUBER: Welcome back to all of you watching us here in the United States, Canada, and around the world. I'm Kim Brunhuber. This is CNN Newsroom.

It's a critical weekend for Kamala Harris as time runs down for her pick for a running mate for November's election. Sources say top candidates, Pennsylvania Governor Josh Shapiro and Arizona Senator Mark Kelly, will meet with the Vice President in the coming hours. Minnesota Governor Tim Walz will also speak with Harris, as there's been renewed interest in him from the Harris campaign. Harris is expected to stump with her new pick in Pennsylvania on Tuesday.

Now, the U.S. economy is strong right now, according to reports on consumer spending, but strong isn't how many Americans perceive it. The stock market is reacting in fear. On Friday, the Dow tumbled more than 600 points after falling more than 900 earlier in the day. The S&P and NASDAQ also closed down.

Now, part of this comes from a weak U.S. jobs report, which recorded surging unemployment rates and more people applying for out of work benefits. Traders have been placing their bets on the Federal Reserve cutting interest rates in September, but many worry that won't be enough to fix a growing crisis of confidence.

[04:35:00]

Ryan Patel is a senior fellow with the Drucker School of Management at Claremont Graduate University. And he joins me now from Los Angeles. Great to see you again. So, break it down for us. What is going on? Why are the markets so worried?

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT, CLAREMONT GRADUATE UNIVERSITY: Well, let me take the first part, the markets are worried because they've seen a lot of data, not just in the jobs report, Kim, it's also this last week and then, the upcoming week of earnings released, right? And so, a couple of the big tech companies, like Amazon, didn't have great earnings, and then you also had Intel having a big -- in the semiconductor industry, a big relief of late layoffs.

And so, this sparked a little bit to that. And also, the A.I. spending in the big tech companies too led to less revenues. And on top of all of that, the market wants the Fed to actually already cut interest rates. And I think that also put on there because the Fed just had a report and they still didn't really signal that they were going to do that.

BRUNHUBER: Yes. So, let me ask you there. I mean, did the Fed make a mistake here? Did it wait too long to cut rates, which they haven't done yet, but presumably they will be doing?

PATEL: Well, I mean, that's the thing, Kim. I mean, let me take it for the audience. The market is reacting thinking that the Fed was going to do this in September, even though the Fed had said they weren't going to do it until later during the year. Fed comes out, said that they were going to have at least 25 basis point. And to answer your question, yes, this data that we've seen, the jobs report, points that the Fed waited too long, or they -- but we also knew the Fed also stated, Kim, that they weren't going to go ahead of the curve, that they were going to come behind it until they saw all the data and then make the decision.

So, for me, when you see the investors and Wall Street react to this, it's almost predictable because we knew Intel wasn't going to do that great. This new news isn't really new to investors, but all of it together is sounding off to the markets. And even the -- you know, the VIX index, which is kind of the fear gauge of Wall Street is at all- time high compared to the bank -- you know, the bank regulation and the bank failures from years ago.

BRUNHUBER: Yes. All right. So, I take it from, what you're saying, a few alarm bells are going off here. But how worried should the average American be with what's going right on sort of right now and is a recession sort of still possible?

PATEL: Yes, I think this is -- there's a lot of noise. Meaning, if you look at the consumer price index, it is a mixed bag, meaning that you think of the debt being at all-time high on credit cards. Savings is all time -- you know, not all-time low, but it's really low for people to spend. We do see people spend in retail, but we also start -- are seeing in the reports that they're not spending on ticket items. So, what does that mean? That means people are saving their money on specific food purchases that are still pretty high.

And so, even with this news this week, Kim, I think people are still holding back and not wanting to spend on different purchases and also seeing that the wage growth still hasn't kind of came together. I think it's -- people are still very conservative and feeling the pain in certain sectors and industries.

So, this -- I mean, I know this is an alarm bell for probably investors, but I think for the average consumer, it's still the same feeling, meaning that is there really stability and trust moving forward?

BRUNHUBER: Yes, let's get to that feeling of trust there, because all of this is sort of, you know, coming with, you know, possible rising costs of oil because of Middle East tensions. I mean, it isn't a great economic atmosphere sort of heading into the election if you're a Democrat, especially when you look at how people feel about the economy.

A recent Gallup poll found nearly half of Americans rate the current conditions as poor. Seven in 10 Americans believe the economy is getting worse. So, given all of that, is the perception worse than reality here? I mean, this is something we've talked about, you and I, a lot, but now it seems like maybe the two are kind of matching up now. Is that fair?

PATEL: I mean, it is. If you go and say you want to pay rent and something, is it more expensive compared to last year, Kim? You want to go pay, you know, for food compared to last year, you're going to say it's more expensive? Yes, you are.

And regardless of where the inflation is, you feel that in your pocket. And then, when you look at the savings account, it's also less as well. And I think part of it too, is the stability of the job market of also, is your company continuing to grow? I also think, and we saw with Intel, hate to use them in an example, where companies are spending money and the profits are decreasing. What is it -- what did that happen? Who passes the buck? What is the prices go toward? It's is toward the consumer.

And so, I think consumers see it and feel it. And when it comes to voting, Kim, it's what did you do last for me? What did you do for me? How do I feel? And unfortunately, that is a part of the thing. You can show all the economic numbers of the last three years of how the market's grown, which it has. But -- and the GDP has grown this year as well. But when it trickles down to the actual consumer, it's a mixed result because it's not all variables are equally the same. And that's why it's tough.

[04:40:00]

BRUNHUBER: Exactly right. Listen, we'll have to leave it there. But always great to talk to you. Ryan Patel in Los Angeles, thanks so much.

PATEL: Thanks, Kim.

BRUNHUBER: All right. Here is where the medal table stands on day nine of the Paris gold rush. China still holds its lead with the most Olympic gold medals so far. Team USA is close behind but it's leading pack with the most medals overall. There are a few events going on right now, the highlights come up later.

The men's 100-meter final. American Noah Lyles will be running to break Usain Bolt's world record. We have the last night of swimming for men and women featuring four finals. And a rematch of Wimbledon is on tap. Spain's Carlos Alcaraz goes up against Serbian legend Novak Djokovic in the men's singles final at Roland-Garros.

So, for more on what you can expect from today's events, I'm joined now by CNN Sports Analyst Christine Brennan live in Paris. Before we go to today, you know, it seems Christine, you and I, we've spent a lot of time talking about Ledecky and Biles for good reason. They haven't disappointed. Another great day for the American stars, right?

CHRISTINE BRENNAN, CNN SPORTS ANALYST AND SPORTS COLUMNIST, USA TODAY: Oh, absolutely, Kim. You know, I was at the swimming pool at the venue there and Katie Ledecky made history. This is remarkable what she has done over four Olympic Games. She won the 800 freestyle for the fourth consecutive time. She did it in 2012, 2016, 2021, and now 2024. Won by more than a second. That's about a body length over Ariarne Titmus, who we must say from Australia, has had a great Olympics.

And you know, the sportsmanship, you know, so much we hear about bad in sports, Kim. This is -- well, this is the best in sports. You have Katie Ledecky and you have Titmus raising Ledecky's arm in triumph after Ledecky won that -- her ninth gold, which now ties her with a Soviet gymnast as the most -- from back in the '60s is the most ever for a woman. So, that's extraordinary.

And Titmus realizing the moment, even though she's just been defeated, raising Ledecky's arm in triumph, hugging her. And then, when Ledecky came out of the pool deck and was announced one last time as she got out of the -- pulled herself out of the pool, you've got Titmus with prolonged applause for Ledecky.

As Katie said earlier in the week, when asked about the rivalry between Ledecky and Titmus, she said, it's not a rivalry, it's a friendship. And what a great statement as Ledecky went into the history books.

And an hour or two earlier, you had Simone Biles winning the vaults, winning her seventh gold medal. She could -- has a chance for two more. She could tie Ledecky for the most golds ever for a woman in any Olympic sport from any country ever. This is what we're seeing here from these two 27-year-olds. It's quite remarkable. It's exhilarating. And as I said a moment ago, it is the very best of sports.

BRUNHUBER: Yes, I mean, we are literally witnessing history here. So, Christine, let's pivot to today. So, what's on your radar?

BRENNAN: Certainly, there's the U.S. women's basketball team against Germany. This is going to be a good one. Obviously, WNBA players on both sides. The U.S. team is being watched. They're the best in the world and they don't get a lot of attention.

Last loss. Kim, in 1992, that's just incredible for the U.S. women's basketball team. And yet, because they almost are too good for their own good, they just -- a lot of reporters can't go, not because we don't care, but we're so busy with all the other things going on at the Olympic Games. And of course, the Caitlin Clarke controversy, and should she have been there, and the eyeball she would have drawn to this team to give it attention. Nonetheless, here they are, they're playing well. Germany, a great collision there.

And as you mentioned, they are.

Djokovic and Alcaraz, and of course, they just met and Alcaraz beat Djokovic at Wimbledon. Alcaraz also won at Roland-Garros. Of course, this tournament is at Roland-Garros. And you know, what's interesting, there was some talk when tennis was brought into the Olympics, men's and women's tennis, that, wait a minute, they have all those four Grand Slams, why do they need tennis?

Well, this is why maybe we need tennis at the Olympics, because we get the matchups of the best in the game. And there's also something called the Golden Slam that Steffi Graf won, where you win all four of the Grand Slam tournaments, and then you also win an Olympic gold medal. And obviously, this means a lot to both of these men. That's going to be fun to watch.

And of course, the French love tennis. They love their Roland-Garros champions and Djokovic and Alcaraz, two of the best, and we will see them on the world stage, the greatest stage, the Olympic Games.

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BRUNHUBER: Yes, fascinating intergenerational match up there. Christine Brennan in Paris, thanks so much. And we will be right back.

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BRUNHUBER: Ukrainian military claims it sank a Russian submarine and hit an S-14 anti-aircraft missile system in Russian occupied Crimea. Ukrainian officials say the submarine, quote, sank on the spot, adding that the same sub was severely damaged in a Ukrainian missile attack last year. He claims Russia's navy has already lost a third of its Black Sea fleet. Russia has yet to comment on the alleged attack.

Ukraine's military also says it carried out strikes inside Russia on Saturday, including an airfield where Russian forces allegedly stored guided aerial bombs and other equipment.

In the U.K., dozens of people have been arrested as violent protests fueled by far-right groups gripped several cities for a third day. Tensions have been flaring since a stabbing attack last week which left three children dead. Journalist Elliott Gotkine has more from London.

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ELLIOTT GOTKINE, JOURNALIST: Less than a week after three small girls were killed in a Taylor Swift themed dance class in Southport, near Liverpool in North West England, far-right protests, anti-immigrant, anti-Muslim protests have continued to take place in cities across the U.K.

On Saturday, they took place in cities such as Bristol in the west of England, Hull in the north east, Belfast in Northern Ireland, Liverpool, Manchester as well. There were scenes of violent clashes between far-right protesters and police, a number of whose officers were injured when they had things like bricks and bottles thrown at them.

There were also violent scenes when anti-racist protesters and far- right protesters managed to get to one another. For the most part, they were kept apart by police officers. We also saw vehicles being set on fire. There were also reports of looting in some instances as well.

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Prime Minister Keir Starmer saying that the police had the government's full backing to try to keep the streets of Britain safe and to take full measures that were necessary against those that, in his words, were looking to sow hate.

Now, these protests began in the wake of this stabbing that, as I say, left three girls killed, seriously injured eight others and left two adults in hospital. There was misinformation spread on social media, particularly X that said that the perpetrator was a recent migrant and who was Muslim. As a result of this misinformation, the judge presiding the case took the unusual step of lifting reporting restrictions on the 17-year-old boy who turns out to be born in Cardiff in Wales and whose parents came to the U.K. in the wake of the Rwandan genocide. They came from that country.

Now, the 17-year-old boy, one Axel Rudakubana, has been remanded in custody. In other words, he's been kept in prison until his pretrial hearing, which is expected to take place in October.

Elliott Gotkine, CNN, London.

(END VIDEOTAPE) BRUNHUBER: And we'll be right back. Please stay with us.

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BRUNHUBER: Well, the Paris Games have been very successful for Chinese badminton star Huang Ya Qiong. Her story has given new meaning to those symbolic Olympic rings. So, first, she won gold with her teammate, defeating South Korea in the mixed doubles final. And then, have a look at this. Her boyfriend and her fellow team member dropped to his knee and popped the question on live TV. The crowds cheered as Huang said, yes, and he slipped on an engagement ring. Now, this isn't the first engagement at the Paris Games. Two Argentinian athletes said, I will, in the Olympic Village earlier.

Well, dancers from the Moulin Rouge in Paris, the birthplace of the "Can Can" got into the Olympic spirit, giving cyclists at the Olympic men's road race a little encouragement. Have a look.

Riders were competing a 170-mile track that started at the Eiffel Tower, looped past the Palace of Versailles, and finished at the Trocadero. Now, it wasn't clear whether the dancers helped the riders speed up or slow them down.

Now, some Olympic gold medalists from the Rio Games are camping in a park in Paris to watch these games. Former German footballer Josephine Henning and her friends are in the Bois de Boulogne in two vans, one of which is a converted fire truck. They say it's good fun and it saves money. They found the campsite on an app. And so far, there's been no charge for parking. So, they have extra money for tickets to Olympic events, but they say they still have to be careful. Some cash left unattended in the van was actually stolen.

All right. That wraps this hour of CNN Newsroom. I'm Kim Brunhuber. I'll be back with more news in just a moment. Please do stay with us.

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