Return to Transcripts main page

CNN Newsroom

Harris Details Economic Vision, Trump Calls It "Communist Price Control"; Israeli Strike Kills 15 in Central Gaza; Biden States "Closer Than We've Ever Been" to Gaza Ceasefire; Ukraine's Cross- border Assault into Russia; Democrats, Independents Optimistic about U.S. Economy with Harris, Republicans Not; SCOTUS Rejects Biden Request to Enforce Civil Rights. Aired 4-5a ET

Aired August 17, 2024 - 04:00   ET

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


[04:00:00]

(MUSIC PLAYING)

KIM BRUNHUBER, CNN ANCHOR AND CORRESPONDENT (voice-over): Welcome to all you watching us here in the United States, Canada and around the world, I'm Kim Brunhuber. This is CNN NEWSROOM,

U.S. Democratic presidential nominee Kamala Harris unveils a range of economic policies. What she's planning and how her opponent, Donald Trump, is responding.

Joe Biden expressing optimism over efforts to reach a ceasefire and hostage deal for Gaza. Discussions are taking place amid concerns of Iranian attacks against Israel. We'll have details plus a live report from Tehran.

And hurricane Ernesto pounds Bermuda as the eastern U.S. starts to feel its impact. We're tracking the storm as it moves across the Atlantic.

(MUSIC PLAYING)

UNIDENTIFIED MALE (voice-over): Live from Atlanta, this is CNN NEWSROOM with Kim Brunhuber.

BRUNHUBER: With the Democratic National Convention set to get underway on Monday, we're getting our first look at Vice President Kamala Harris' planned economic policies.

She unveiled parts of that plan Friday in North Carolina, a state now in play after President Biden dropped out of the race. Harris said she wants to create an economy based on opportunity for the middle class. Here she is.

(BEGIN VIDEO CLIP)

KAMALA HARRIS (D), VICE PRESIDENT OF THE UNITED STATES AND 2024 PRESIDENTIAL CANDIDATE: And key, key to creating this opportunity economy, is building up our middle class. Building up the middle class will be a defining goal of my presidency

because I strongly believe, when the middle class is strong, America is strong.

(END VIDEO CLIP)

BRUNHUBER: Harris said she would restore some popular provisions of the American Rescue Plan, including expansion of the child tax credit, also enhancement of the Earned Income Tax Credit and extending subsidies for Affordable Care Act premiums.

Harris wants to work with states to cancel medical debt for millions of Americans and tackle price gouging on food items. She would accelerate Medicare's drug price negotiations, expected to result in billions in savings.

Harris also took aim at Donald Trump's economic priorities.

(BEGIN VIDEO CLIP)

HARRIS: He plans to give billionaires massive tax cuts year after year. You know, I think that, if you want to know who someone cares about, look who they fight for.

(END VIDEO CLIP)

BRUNHUBER: Trump will also be out on the campaign trail this weekend. He is set to hold an afternoon rally today in Wilkes-Barre, Pennsylvania, another battleground state. Trump was slamming Harris' economic plans before she even revealed most of them.

On Thursday, he criticized her and Democrats' handling of the economy in general in a press conference at his home in Bedminster, New Jersey. Trump reached back to the Cold War in his condemnation, invoking communism, likening Harris' plans to something from the Soviet Union or Venezuela. Here he is.

(BEGIN VIDEO CLIP)

DONALD TRUMP, FORMER U.S. PRESIDENT: Kamala is reportedly proposing communist price control. It's a Maduro plan like something straight out of Venezuela. You're all going to be thrown into a communist system. It's a communist system. You're going to be thrown into a system where everybody gets health care.

It's you wait for your doctor.

(END VIDEO CLIP)

(BEGIN VIDEOTAPE)

BRUNHUBER: For more on this, I want to bring in Ryan Patel. He is a senior fellow with the Drucker School of Management at Claremont Graduate University. And he joins us from Cleveland, Ohio.

Great to see you early in the morning here. So let's start big picture with the themes we heard there from Kamala Harris. It sounds like a populist economic message, broadly speaking.

So what struck you?

RYAN PATEL, GLOBAL BUSINESS EXECUTIVE: I think there's a couple of things. I think, one, you know, talking about the middle class is what's going to win. That conversation for the economy, for the U.S., because it's so important.

I think housing was something that was brought up very early and talking about tackling that problem because it will be a big conversation. We've seen prices increase for housing shelter year- over-year and that's something needs to be addressed.

To think about it, the core CPI index, about 90 percent of that monthly increased from there.

I think the third thing you think about is the tax credit. I think the things that she talked about, you know, first-time homebuyers, I think it was $25,000 bringing that -- bringing that back as a tax credit, she was really focused on that.

And revealing the plan in North Carolina, especially the economic plan, trying to win that state to me is also an interesting choice for her.

[04:05:00]

When you think about the backbone of the U.S. and trying to address, again, the middle class and the prices.

And finally, I have to mention, you know, she kind of went after some of the corporations and also subsidizing the pricing. So it'd be interesting to see how she actually implements that plan when she tries to put the policy out.

BRUNHUBER: Yes, that's exactly right. That was going to be my next question, is the house. Let's look at grocery prices. Food prices have surged more than 20 percent under the Biden administration. So Harris is promising to go after price gouging.

I mean, how would you actually do that?

PATEL: Well, sorry to jump you, Kim. I know you always ask me great questions. So I knew that was coming.

But this is difficult, right?

I mean, this is something -- I'm happy to tell you it's easy to say, hard to do, right?

You really need to understand where the gouging is coming from. I think it is a policy that is great to have.

But with inflation still at the tie, where can you go and know and understand where it is actually occurring? Yes, it's great. We need to have to ensure that there's some practices in places that consumers like us don't get taken advantage of. And there's these intended consequences.

But where, where is it going to go?

And then on top of that, when you think of price inflation from subsidies that she's going to go down that route, there's an actual undermine some of the objectives about you know, getting the national debt in control as well.

So this is not something that is just here. This is what I'm going to do but having to call up those companies, I'd love to know which one she's going to go after and how that affects the ecosystem and how strong she going to hold that moving forward.

BRUNHUBER: That's right. There are certainly risks associated with that.

So for Harris running on the administration's record is kind of a challenge. The economy feels different than it reads on paper, with good employment and inflation numbers coming down. It's something that Harris herself admits. I want to play a clip from her. Here she is.

(BEGIN VIDEO CLIP)

HARRIS: New numbers this week alone show that inflation is down under 3 percent. Still we know that many Americans don't yet feel that progress in their daily lives. Costs are still too high. And on a deeper level, for too many people, no matter how much they work, it feels so hard to just be able to get ahead.

(END VIDEO CLIP)

BRUNHUBER: So listen, Ryan, this is something you and I have talked about at length over the past couple of months. It's tough to overcome that perception of the felt economy and how she's going to change that between now and November.

PATEL: A great point, yes, the numbers, she's right; 2.9 percent in 12 months through July. That's reported by the Labor Department.

But that just occurred, right?

So you're not going to feel that right now or until November. I mean, yes, it's things are changing but it takes time, just like decreasing the interest rate. So for her, the main thing, the next two, until November, is not just showing what she's going to do in the plan but also having to believe here's what's going to happen in the short term.

Yes, she threw numbers, you know, 3 million, the number new homes and rentals that Harris plans to build at the end of her first term. But she's got to really focus and show what's going to happen in the near term. And unfortunately, that's why I think she's trying to touch the pricing to a degree. What can be measured. And it's going to be a very hard task for her. Yes, the numbers are showing that the economy is going toward that aspect.

But again, it's not feeling it in your pocket as of right now, especially when you think of the different variables that go in there. And unfortunately, for her, it's not an easy one-all, a switch on and a switch to go forward, going that route.

So I also want to tell you, Kim, I know you're probably not going to be on air but that meeting in September with the Fed is going to be an interesting decision as well, because it'll have an impact on how she kind of moves forward as well.

BRUNHUBER: Yes, that's a great point. All eyes will be on that. In the meantime, listen, always great to speak with you, my friend. Ryan Patel, thank you so much, really appreciate it.

PATEL: Pleasure to be here, Kim.

(END VIDEOTAPE)

(MUSIC PLAYING)

BRUNHUBER: U.S. President Joe Biden says a cease-fire in Gaza is closer than it's ever been. Biden says U.S. secretary of state Antony Blinken will head to Israel today to press for an agreement. An Israeli source tells CNN that Israeli negotiators are cautiously optimistic about the talks, although such optimism in the past has been dashed.

But the source says there is potential for an agreement when talks resume next week.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: I'm optimistic, not far from over, just a couple more (INAUDIBLE).

QUESTION: Are you more optimistic now than you have been in months past?

BIDEN: Yes.

(END VIDEO CLIP)

BRUNHUBER: Now all this comes as tensions grow throughout the Middle East.

[04:10:00]

Gaza's civil defense says an Israeli strike has killed at least 15 people in central Gaza and that more people are trapped in the rubble. Lebanon's health ministry says an Israeli strike in southern Lebanon has killed at least 10 people, including children. Lebanese officials say the strike also wounded at least five people.

Israel says it struck a Hezbollah weapons storage facility in the area overnight. And the U.S. is issuing a warning to Iran.

A senior White House official tells CNN that there could be cataclysmic consequences if Iran strikes Israel in retaliation for the killing of Hamas political leader Ismail Haniyeh in Tehran. We have CNN's Nada Bashir joining us live from London and our Fred Pleitgen is live in Tehran.

I'll start with you, Fred.

So what more can you tell us about the U.S. warning to Iran?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, so far sources that we're speaking to here inside Iran are essentially laughing all of that off, not just that warning or that alleged warning by the United States.

But then also some of the statements that came from the foreign minister of Israel yesterday, when he was in a press conference, together with the foreign ministers of the United Kingdom and France, that he essentially said that he expects France, the United Kingdom, to attack Iran if Iran were to retaliate for the killing of Ismail Haniyeh.

Which, of course, happened here in Tehran on July 31st. The Iranians are saying they're going to make their own decisions about how they move forward. But of course, at the same time, they are keeping a very close eye on that process that's going on in Doha on those attempts to get a ceasefire going.

And you can see in those talks that Iran, while, of course, they're not at the table, they're not part of those talks, they still are a major factor in those talks. In fact, made a joint statement by the foreign ministers of the U.K. and France urging Iran not to retaliate at this point in time for the fear of derailing those talks.

And, of course, fueling further tension here in the Middle East. The other thing that really shows how important around is in all of this is the fact that the prime minister of Qatar, who of course, is one of those groups mediating the talks.

On every day that those talks took place, at the end of the day, he called Iran's foreign minister to update Iran's foreign minister on how those talks were progressing. Well last night, Iran's foreign minister, he came out on social media and he said that he had warned the prime minister of Qatar of what he called Israeli deceit in those talks.

The Iranians are also saying that they have no faith in the U.S. as a mediator in that as well. They don't consider the U.S. to be objective. Of course, to be very much in Israel's corner.

So the Iranians are essentially saying they are skeptical about the ceasefire talks. They still very much reserve the right to strike back at Israel for the assassination of Ismail Haniyeh. But they will not say when, where and how that is going to happen at this point in time.

BRUNHUBER: We heard those warnings from the U.S.

Any indications that the U.S. might be involved in any attack on Iran?

PLEITGEN: Well, I mean, it could certainly be that the U.S. would definitely be involved in the defense of Israel if Iran were to attack Israel. That's something that we can see by the U.S.' force posture.

Of course, here in this region and, of course, by the last time that Iran struck back at the Israelis after the bombing of Iran's consulate in Damascus in Syria. The U.S. right now has a formidable force here in this region, with submarines, with aircraft carriers and with warships as well.

A lot of them, of course, right now on a defensive posture there, waiting to see if the Iranians do anything, if there's any strikes that go on by the Iranians.

But it's certainly something, of course, the Iranians would brace for. One of the interesting things that we're seeing right now here out of Tehran is Iranians are still very much saying that revenge, as they put it, is going to happen.

If you go around here, around the capital, around Tehran, there are posters with the likeness of Ismail Haniyeh all over the place, calling for that kind of revenge. But at the same time, of course, it's already been more than two weeks. And so far that revenge has not yet happened.

The Iranians however also saying that they do have formidable weapons at their disposal with which they could strike at any point in time. And the U.S. of course, says the same thing as well.

The Iranians say that they do want to strike back at Israel but, at the same time, they've also made very clear that they don't want a broader conflict and possibly even a wider war.

That of course, could very well also involve the United States to engulf this region in even more turmoil than it is already in. So that's certainly is a factor as well as far as the Iranians are concerned.

But at the same time they are taking their time right now. They say and not making clear again, if when -- or not if when, how they will strike the Israelis.

BRUNHUBER: Yes, Iran saying that delaying their revenge was indeed part of the revenge, making Israel wait for that to happen. I want to turn to Nada now on the negotiations themselves.

We're hearing optimism from some of the parties involved. So take us through where things stand right now with the U.S. secretary of state heading to the region today.

NADA BASHIR, CNN CORRESPONDENT: Well, mediators have described these talks which took place in Qatar over Thursday and Friday as serious and constructive.

[04:15:04]

The proposals put forward were described as bridging proposals aimed at trying to close and narrow down those gaps between Israel and Hamas. We know that a broader framework has launched, been approved or at least agreed upon by both sides.

But it is those finer details which have proven difficult to get everyone to agree upon. We've heard from diplomatic sources in the past that some of those disagreements focus on, for example, Palestinians being able to freely move from southern Gaza and return back to parts of northern Gaza without restriction.

On Israel's request with veto power over which Palestinian prisoners are released from Israeli jails as part of this agreement. And crucially, of course, the presence of Israeli forces along the Philadelphi corridor, separating the border between Egypt and Gaza.

So these have according to sources been key issues for some time now. However, according to people familiar with the negotiations, including diplomatic sources that have been taking place over the last two days, there has been some progress made.

There is, as you mentioned, cautious optimism over the progress of these talks. We are expecting officials from the U.S., Qatar and Egypt, again, key mediators, to meet next week. We know that there will continue to be work over the coming days, focus more specifically on the implementation and the terms of this deal.

But there is a sense of hope that there may well be a deal to actually sign and agree upon next week. At least that is the hope of many in the international community, including the United States. President Biden saying that we are closer than we ever have been to a deal being struck.

But of course, there has been some words of caution as well from both sides. We know, of course, that while an Israeli delegation welcomed the efforts of mediators, they have not explicitly endorsed this deal.

We've heard from Hamas officials saying that they feel that the U.S. has conformed to Israel's demands. So no explicit agreement from either side, just yet. And while there is cautious optimism from mediators and members of the international community, there also continues to be a lot of skepticism within the region.

We've been in this position before. We've heard that there has been progress in talks time and time again without any real result. And as the situation in Gaza continues to deteriorate, there is that mounting pressure. Many now holding their breath, hoping that this might, in fact be the deal that actually gets signed for once.

BRUNHUBER: Yes. Still hope. Nada Bashir live in London, Fred Pleitgen live in Tehran. Thank you to you both. Really appreciate it.

Conditions are deteriorating in Bermuda right now, as hurricane Ernesto batters the island. The center of the storm is expected to track near or over Bermuda in the coming hours. But due to Ernesto's large size and slow forward motion, (INAUDIBLE) storm conditions could continue well into Saturday evening.

Drenching rain and powerful winds from the category 1 storm began to thrash the island Friday afternoon. Life-threatening surf and rip currents are possible along the U.S. East Coast. We'll have more from CNN meteorologist Allison Chinchar a little later in the hour.

Ukraine says it's making more progress in its cross-border incursion into Russia.

Now the question is, how will Vladimir Putin react to the humiliation of enemy troops on Russian soil for the first time since World War II?

We'll get that just ahead. Please stay with us.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[04:20:00]

(MUSIC PLAYING)

BRUNHUBER: Both Russia and Ukraine are reportedly gaining ground on two opposite sides of the battlefield. Ukraine says Russian troops are now 10 kilometers or about six miles from the key city of Pokrovsk, which is northwest of Avdiivka.

The statement says fighting is underway around the clock and the situation is getting worse. But Ukraine says it's also pressing ahead with its surprise incursion into Russia's Kursk region, reportedly advancing up to two more miles.

According to president Volodymyr Zelenskyy, the operation is going as planned. Here he is.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): We see (INAUDIBLE) is suffering losses. So this is beneficial, very beneficial for our defense. This includes the destruction of Russian army's logistics and the depletion of the reserves. We must inflict maximum damage on all Russian positions and we are doing so.

(END VIDEO CLIP)

BRUNHUBER: Meanwhile, Russia claims Ukraine has likely used the U.S. made HIMARS missiles to destroy a bridge in the Kursk region. U.S. officials say Kyiv has used those weapons in its incursion but they appear to have been fired from Ukraine.

Now some experts believe the Ukrainian incursion is nothing less than a turning point of the war, not because of Kyiv's gains on the ground but because it pokes a hole in Russian president Vladimir Putin's narrative.

Former Swedish prime minister Carl Bildt says Putin has been pushing the idea that Ukraine can be gradually ground into submission. Now the new offensive shows otherwise.

And Bildt recently wrote in "Foreign Policy" magazine, that, quote, "Wars are political as well as military and it's in the political arena where Ukraine's incursion into Kursk has fundamentally changed the course of the conflict."

And he joins us now. Carl Bildt is a co-chair of the European Council on Foreign Relations and he joins us now from Korcula (ph), Croatia.

Thank you so much for being here with us. As I mentioned there, you said that this incursion into Russia is a turning point in the war. I realize you don't mean that from a military point of view.

But just to start on the battlefield itself, are you surprised by what Ukraine has accomplished here?

CARL BILDT, FORMER SWEDISH PRIME MINISTER: I think a lot of people are surprised because, if we go back a year in time, we had the much, much hyped, we have to say, Ukrainian attempt at a counter offensive and everyone expected the Ukrainians to do something rather radical to change situation on the battlefield.

That failed miserably and what we've seen since then is that element of pessimism concerning the Ukrainian military abilities to change the situation on the battlefield.

And then suddenly, because cooperation comes, which demonstrates that they are really capable of rather impressive offensive military operation. So that changes the entire strategic political picture of the conflict.

There is no doubt about that.

[04:25:00]

BRUNHUBER: Right. And among the people, perhaps surprised by this, Putin as well, right?

So when you say it might be a turning point in the war, you mean politically. So explain to us why exactly.

BILDT: Yes, (INAUDIBLE) what it means militarily other experts can probably go into more details about that. But it clearly changes the political calculus. It is profoundly embarrassing for Mr. Putin to see Ukrainian forces spreading fairly deep into Ukraine -- into Russian territory.

And while he said, when it started, he said -- and his chief of staff Gerasimov said, we got to throw them out very quickly. We are now more than 10 days into this operation and we have no sign whatsoever of any serious Russian response. So it shows that what he's been building up as his narrative of

gradually grinding down the Ukrainians, the Ukrainians having no capabilities doing (INAUDIBLE), suddenly we have the Ukrainians go into Russian territory, profoundly, profoundly embarrassing for Mr. Putin.

BRUNHUBER: Before I get to what it means for allies, I just want to ask you, within Russia itself, this upsets Putin's narrative. As you say, Moscow is trying to hide or reframe what's happening.

But do you think that, within Russia it will affect the support, for example, that he might get from the elites, the belief that he might get within Russia itself?

BILDT: I think that might be two effects. One, obviously he would be saying, well, now it's sort of the idea of the West is invading Russian territory. Let's do more in order to defend ourselves. That sort of (INAUDIBLE) of support.

But I think primarily among the elites, because he's been saying to the elites that, trust me, I'm going to win this particular war; yes, stay with me and, step by step, village by village, square kilometer by square kilometer, I'm going to take, take Ukraine.

And that particular narrative has been a chapter that -- I think that's more an effect among the elites. But at the end of the day, that's where power lies in Russia.

BRUNHUBER: Yes. The more tangible effects might perhaps be on Western allies, especially here in the U.S.

Do you think it will change the narrative here that we're hearing from certain Republicans, for example, who have said that basically Ukraine can't win?

BILDT: Yes, I mean, those of JD Vance, the vice president nominee, (INAUDIBLE) one who said there's no way whatsoever, because that Ukraine can win. Because Russia can produce more (INAUDIBLE) ammunition than Ukrainians. That's been one of his main arguments.

Now it demonstrates that they can actually do things and they have built up military capabilities. So they can change the situation on the battlefield, on the ground in order -- and we have to be clear about that -- in order to shorten the war and make a political solution come closer in time.

Because that has to be the aim at the end of the day.

BRUNHUBER: Finally, before we go, any concerns that U.S. weapons have been used in these incursions, that this may escalate tensions between the U.S. and Russia?

BILDT: What I don't know. Back in Sweden, (INAUDIBLE) opinions, weapons, so German weapons or (INAUDIBLE) weapons or whatever. But it's been primarily Soviet references, as a matter of fact, that has been used. But I mean, this is a strategic defensive operation. It is not a war

that Ukraine started. It's a war that Russia started and it's part of the defense of Ukraine. And that is why we are and should continue and should, as a matter of fact, strengthen our support for what the Ukrainians are doing.

BRUNHUBER: All right. It's been really great speaking with you, Carl Bildt. Thank you so much for being here with us.

BILDT: Thank you.

(END VIDEOTAPE)

BRUNHUBER: All right. Still ahead, Kamala Harris reveals her economic platform centered on helping middle-class and lower-income Americans. And it comes amid new polling on the state of the U.S. economy. Voters weigh in on which candidate they trust more -- next. Stay with us.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[04:30:00]

(MUSIC PLAYING)

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

U.S. Vice President Kamala Harris has unveiled her economic agenda as the Democratic nominee for president. And it's got a populist theme. Her platform calls for providing tax relief for more than 100 million middle-class and lower-income Americans.

She's proposing measures to make daily life more affordable, bringing down the cost of things like groceries, housing and child care. And she criticized Donald Trump's call for more tariffs on imported goods, saying it would result in higher prices for consumers.

Meanwhile, Trump gave two speeches this week centered on the economy but he has yet to release a detailed economic plan. As CNN's Harry Enten reports, the former president and business man is losing ground to Harris in polls about the economy.

(BEGIN VIDEO CLIP)

HARRY ENTEN, CNN POLITICAL ANALYST: So we're going to look at polling from Michigan, Pennsylvania and Wisconsin, battleground state polling.

And what you see is that Trump's advantage on the economy while still existing is shrinking. So against Joe Biden, he held a double-digit advantage in these three states. Against Kamala Harris, the advantage is still there. But look at that. It's dropped to just six points.

And this is part of a larger picture of Donald Trump on the issues in which he leads. He still may lead but the issue leads are shrinking and you see that right there on the state of the economy at issue. He should be leading by double digits like he did against Joe Biden.

ANDERSON COOPER, CNN HOST: When people were asked about what candidate cares more about them, what do you see?

ENTEN: Yes, we talk about the economy and we say, OK you know, who do you trust more on the economy?

Oftentimes, people like to ask the question, who is actually caring about me?

You know, you look at what Kamala Harris is putting out in her plan, right. She's trying to win the empathy vote, right?

You go back to 2012, Mitt Romney actually won that election on the economy but Barack Obama was able to beat Mitt Romney because he was able to defeat him on the question of who cares more about me. And what are we looking at in those key battleground states?

Again, Michigan, Pennsylvania, Wisconsin, what you see is, although Donald Trump leads on the economy on the question of who cares more about people like you, look at that, Kamala Harris has that six-point advantage.

And so this is what she's playing to. She's trying to win the empathy factor because the fact is, I think a lot of people's thoughts on the economy are kind of baked in. But if she can say, "You know, I have the better plans going forward for you and family." She feels she can win that way and that's why she put out the plans she did.

(END VIDEO CLIP)

BRUNHUBER: A new survey from the University of Michigan found Democrats and independents felt energized and more optimistic about the economy in the wake of Harris replacing Joe Biden at the top of the Democratic ticket.

But those who identify as Republican moved in the opposite direction, souring on the economy in the months since Biden passed the torch to Harris.

[04:35:00]

(BEGIN VIDEO CLIP)

BRUNHUBER (voice-over): U.S. stocks just notched their best week of the year so far, all three major indices were up on Friday, staging a comeback after last week's global market rout.

Stocks were lifted by encouraging economic data, including rising retail sales and evidence that inflation is cooling. The widespread expectation that the Federal Reserve will cut rates in September and the result is greater optimism among traders.

(END VIDEO CLIP) BRUNHUBER: Disgraced former congressman George Santos is expected to plead guilty to federal campaign fraud charges on Monday. Multiple sources tell CNN Santos, who was expelled from the House last year, previously pleaded not guilty to 23 charges relating to fraudulent activity during his 2022 midterm campaign.

Allegations include misusing campaign funds and lying about his personal finances on House disclosure reports. The ex-New York representative is only the sixth lawmaker ever to be expelled from the U.S. House chamber.

Now the worst of typhoon Ampil is over for Japan. The storm brushed the country's eastern coast on Friday. It's now weakened to the equivalent of a category 2. The Atlantic hurricane will continue moving away from Japan and into the open waters of the north Pacific.

Meanwhile, in the Atlantic, hurricane Ernesto has been lashing Bermuda the past few hours and it isn't over yet. The hurricane's center is expected to pass near or over the island very soon. Ernesto as a category 1 storm is still packing a powerful punch. dangerous storm surge is expected as well as large and destructive waves.

Ernesto thrashed Puerto Rico and the Virgin Islands earlier this weekend and is creating dangerous conditions for much of the U.S. Eastern Seaboard. Swells from Ernesto caused this home in North Carolina to collapse into the sea.

(WEATHER REPORT)

BRUNHUBER: U.S. President Joe Biden says a cease-fire agreement between Israel and Hamas is close but, in Gaza this weekend, there are new Israeli strikes and evacuation orders. We will have the latest next, please stay with us.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[04:40:00]

(MUSIC PLAYING)

BRUNHUBER: There's new optimism about the possibility of a ceasefire and hostage release agreement between Israel and Hamas. But there are also new Israeli strikes in Gaza and evacuation orders.

Israel has ordered people to evacuate parts of Deir al-Balah and Khan Yunis. They also ordered a new evacuation of the al-Maghazi refugee camp in central Gaza. Israel claims rockets were fired from those areas and it's launching its own strikes there.

The U.N. says that since last October, more than 80 percent of people in Gaza have been displaced.

The White House has condemned a deadly attack by Israeli settlers on the Palestinian village of Jit in the occupied West Bank. A U.S. National security spokesperson called it, quote, "absolutely appalling." He warned the violence isn't helping the ongoing Gaza ceasefire and hostage release talks, which are set to resume in Cairo next week.

The settler attack has left the town of Jit devastated. More than 70 armed settlers invaded Thursday night, overnight into Friday, firing live bullets and tear gas and setting several cars and homes on fire. The Israel Defense Forces said, some people there threw Molotov cocktails and rocks before they dispersed.

A 23-year-old Palestinian man was killed in the attack. Top Israeli officials, including prime minister Benjamin Netanyahu and the president, denounced the settler violence.

(BEGIN VIDEOTAPE)

Miri Eisin is a senior fellow at the International Institute for Counter-Terrorism at Reichman University. And she's also a retired IDF reserve colonel and she joins us live from Herzliya, Israel.

Thank you so much for being here with us. First on what we've seen in the West Bank, what do you make of this latest, especially brutal attack that we saw?

MIRI EISIN, SENIOR FELLOW, INTERNATIONAL INSTITUTE FOR COUNTER- TERRORISM, REICHMAN UNIVERSITY: As you said before, the president has denounced the Israeli prime minister, who is known as being a right wing minister. He has denounced it as have other Israeli politicians.

[04:45:00]

I'm going to say as an Israeli and as a citizen, I'm appalled. It's horrible and these people need to be arrested. They're supposed to be stopped before they do so. This is the way Israelis feel. These are not the way that we are. We are all against this.

And they should not be allowed in any way to do something so illegal, so against the law, so horrific. So yes, I'm absolutely with all of the denouncements.

BRUNHUBER: Hamas has called on Palestinians in the occupied West Bank to, quote, "rise up" against the crimes of the occupation and to confront the terrorist attacks of settlers.

Do you think it signals the prospect of more violence there?

EISIN: Well, Kim, I think that most people are not aware of how much violence by the Hamas, by the Palestinian Islamic Jihad in the West Bank, there has been over the last 10 months. When Hamas put out that call, that's something that they put out literally every single time.

You said before, Israel has attacked again against difference terrorist targets in the Gaza Strip. Hamas puts out these kinds of calls all the time. Sometimes you see that younger generation upping and doing actions. But the IDF, the Israeli Defense Forces, are very proactive in that

West Bank against the Palestinian terrorists. And I'll add, we should be with our police just as proactive against any kind of Jewish or Israeli terrorism. Terrorism is terrorism.

But I'm not going to compare. Well, I will, I will say that terrorism is terrorism and Israelis who went in should be arrested and put in jail. And Palestinian terrorists who do that kind of action should be arrested and put in jail.

BRUNHUBER: I want to look at the possible ceasefire deal here. We've heard optimistic noises from several of the parties involved but, you know, we've been here before, only for things to collapse.

So do you truly get the sense that we are any closer to a deal than we were, you know, a week ago, a month ago?

EISIN: Well, so I'm one of the pessimistic ones and I want to explain why, professionally, I look at things from the Hamas point of view, from Yahya Sinwar's point of view, not because I agree with it. I think it is totally off the charts. They are genocidal terrorists.

But from their point of view, they have no interest in a cease-fire. They absolutely, they, the Hamas, have an interest that the Islamic regime of Iran should attack Israel. But Hamas (INAUDIBLE) Sinwar have an interest that Hezbollah should attack Israel.

So any trying to stop that by a ceasefire, let alone by letting out 115 Israelis and non-Israelis taken from their homes and from parties and from outside on Saturday morning, October 7th, they have no interest in doing so.

So I'm quite pessimistic.

BRUNHUBER: And others would say that prime minister Netanyahu doesn't have any interest in a ceasefire because it threatens his fragile coalition.

Would you agree with that?

EISIN: So Kim, I have no problem with agreeing with that. But I want to call it out. Let's not put Hamas, a genocidal terrorist entity, that is defined as such worldwide, whether on Hezbollah or even the Islamic regime of Iran as the same aspect as a government inside Israel.

I am against this government but I don't oppose the legitimacy and democracy of this government. It was voted in and I'm going to go protest to get it out. And putting it on the same level as if the one is the same as the other is not the same.

I think that this government wants to arrive at some kind of end to this war. I think they do want the hostages to come back. And, yes, I also think that they are a far-right government that have additional interests. And I oppose those interests.

BRUNHUBER: U.S. secretary of state Antony Blinken, again, heading to the region.

What influence do you think the Biden administration will have on these negotiations, given President Biden's lame duck status?

EISIN: The lame duck status has nothing to do with the fact that the United States of America is the strongest, most important both supporter, backer, military cooperator. The United States general, the commander of CENTCOM, the one who is in this area, has been to Israel several times over the last few weeks.

So when we're talking about it, it's not about the White House and specifically President Biden; it's about the United States. It's about those shared values that the ends with all of our kind of -- I call them warts and pimples. We are a democracy in the Middle East, very much struggling in a horrific war.

The United States' backing is of great importance and when the United States comes, we do not ignore them.

BRUNHUBER: All right, Miri Eisin, appreciate having your insights. Thank you so much.

EISIN: Thank you so much, Kim.

(END VIDEOTAPE)

BRUNHUBER: All right. Still ahead, Romania's Ana Barbosu is now officially a bronze medal winner but Team U.S.'s battle for the bronze isn't over. We'll have details on that when we come back, please stay with us.

(MUSIC PLAYING)

(COMMERCIAL BREAK)

[04:50:00]

(MUSIC PLAYING)

BRUNHUBER: The latest twist in the Paris Games gymnastics saga came Friday when Romanian gymnast Ana Barbosu was officially awarded the bronze medal for the individual floor exercise.

Barbosu acknowledged the difficult circumstances of her reallocation ceremony, as its called, and expressed your gratitude to those who helped get her there.

(BEGIN VIDEO CLIP)

ANA BARBOSU, OLYMPIC GYMNAST (through translator): The resolution of the case was possible, thanks to the Federation and the law firm that did not give up on us. The sportswomen fought for all of us and wanted there to be three bronze medals.

I thank them because they fought for us and continue to fight. I'm very happy to have this medal and I hope to continue to represent Romania at the highest level and bring back as many medals as possible. Thank you.

(END VIDEO CLIP)

BRUNHUBER: Barbosu's celebration comes after the court of arbitration for sports' controversial ruling that stripped American gymnast Jordan Chiles of the bronze medal. But the battle for bronze is far from over. Despite recent setbacks, Team USA has vowed to continue fighting for Chiles' medal to be restored.

[04:55:00]

The U.S. Supreme Court has rejected by a vote of five to four a Biden administration request that it enforce new civil rights protections for LGBTQ+ and pregnant students. The unsigned order includes a partial dissent from the court's three liberal justices, joined by conservative Neil Gorsuch.

Federal judges in the 10 states had put on hold the anti- discrimination rule intended to protect transgender students until legal challenges run their course. The ruling means that the intended protection will remain blocked to some degree for now, in about half of the country.

Updated COVID, vaccines in the U.S. could be approved as soon as next week as the country experiences its largest summer wave of infections in at least two years.

Two sources familiar with the matter, say the Food and Drug Administration is expected to sign off on the mRNA vaccinations from Moderna and Pfizer that target a strain called K.2 that's circulating.

Now according to the Centers for Disease Control, viral activity levels in wastewater are a key indicator are at their highest level since July 2022.

A Missouri woman is charged with allegedly trying to steal ownership of Elvis Presley's Graceland estate and millions of dollars from his family.

On Friday, the U.S. Justice Department arrested 52-year-old On Friday, the U.S. Justice Department announced the arrest of 52-year-old Lisa Jeanine Findley. She's accused of orchestrating a failed foreclosure attempt on the king of rock 'n' roll's mansion turned museum.

Findley claimed Elvis' daughter, the late Lisa Marie Presley, had pledged Graceland as collateral for a loan that she did not repay before her death. Prosecutors say that loan was never actually made.

All right that wraps this hour of CNN NEWSROOM. I'm Kim Brunhuber. I'll be back with more news in just a moment, just a moment, please do stay with us.