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Biden Discussed Two-State Solution In Call With Netanyahu; Georgia D.A. Probing Trump Now Facing Her Own Inquiry; CEO Slammed For Denying Request For Mom With NICU Baby. Aired 7:30-8a ET

Aired January 22, 2024 - 07:30   ET

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

[07:30:00]

ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: He posted on social media that he would not compromise when it comes to Israeli security control in Gaza.

And really, this episode speaks to the latest tension point between the two men as their disagreements have slowly spilled into public view, most recently around what to do in Gaza after this conflict ends.

Now, President Biden and Netanyahu jumped on the phone for about 40 minutes on Friday, just one day after Netanyahu appeared to pour cold water on the idea of creating a Palestinian state. But a source says that in this call that Netanyahu said that those comments weren't meant to rule out the possibility of a Palestinian state in the future. The two men talked in detail about what attributes a Palestinian state would need to have as negotiations progress. A source saying that it was a serious and detailed conversation.

One thing that Biden administration officials have been speaking about is the possibility of a demilitarized Palestinian state, something a source said President Biden finds intriguing.

And after that phone call, President Biden told reporters that he does think it is still possible that a Palestinian state emerges in the future. But it completely remains unclear at this time how exactly that could happen as Netanyahu has quite publicly been trying to shoot this down.

And it all comes as even as the U.S. has publicly supported Israel there has been some frustration bubbling behind the scenes with the fact that Netanyahu has publicly pushed back on American ideas and proposals at a time when he is also facing a lot of political heat and pressure back home in Israel.

So all of this really speaks to the challenges President Biden is facing at this moment as he's trying to apply more pressure on Netanyahu not just as he is waging this campaign in Gaza but also in discussions about what happens there when the conflict ends.

POPPY HARLOW, CNN ANCHOR: For sure.

Arlette Saenz at the White House. Thanks for the reporting.

Also this. New footage this morning from the Israeli Defense Forces revealing tunnels they allege are used by Hamas and were used to hold as many as 20 hostages. There is the footage from the IDF. Israeli troops even say when they entered, they had to kill several Hamas operatives.

PHIL MATTINGLY, CNN ANCHOR: Now, these tunnels you're seeing in the video we're showing right now are located in the center of Khan Younis in southern Gaza.

CNN's Jeremy Diamond joins us live from Tel Aviv. And Jeremy, what are we learning about these tunnels right now?

JEREMY DIAMOND, CNN CORRESPONDENT: Well, these are some really remarkable images showing the conditions in which the Israeli military says at least some of those hostages were held in. This tunnel system that the Israeli military is showing us in this video runs about a half-mile long under the center of Khan Younis, the second-largest city in the Gaza Strip. It goes 60-plus feet underground.

And the Israeli military says that 20 hostages were held at different times in tunnels. In the video, you can see that there are about five prison cells with a toilet and a mattress in each of them. The Israeli military says that they determined that hostages were held there based on DNA evidence that was collected from those cells as well as the testimony of some former hostages who said that they were, indeed, held in those very same tunnels.

What they also found was a kitchen, bathrooms, as well as child's drawings that the Israeli military says they believe were drawn by 5- year-old Emilia Aloni who was held hostage and released as part of that weeklong truce that led to the release of dozens of former Israeli hostages.

But, of course, we know that there are still many more hostages who remain in captivity -- 132, according to the Israeli government. About 25 of those are believed to be dead. But the pressure is certainly rising -- as we are starting to see -- on the Israel government to get another deal to secure the release of those hostages.

HARLOW: OK, Jeremy Diamond reporting for us in Tel Aviv with a significant update. Thanks.

MATTINGLY: And then there were two. We're just one day away from the New Hampshire primary. The final messages Nikki Haley and Donald Trump have for voters in the state before they head to the polls. We'll have it next.

(COMMERCIAL)

[07:37:34]

(BEGIN VIDEO CLIP)

NIKKI HALEY, (R) PRESIDENTIAL CANDIDATE: Can you hear that sound? That's the sound of a two-person race.

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: Get your neighbors, get your family, get everybody -- you've got to vote because we have to win by big margins. We have to let them know this is a movement.

(END VIDEO CLIP)

MATTINGLY: It is, indeed, the final stretch here in New Hampshire where Granite State voters are just one day away from heading to the polls and making their voices heard.

Joining us now is an expert on all things New Hampshire, particularly Republican politics, Jim Merrill. He served as an adviser here to past Republican presidential candidates Mitt Romney and Marco Rubio. Jim, appreciate your time this morning.

JIM MERRILL, REPUBLICAN STRATEGIST, STRATEGIST FOR ROMNEY 2012 AND RUBIO 2016: Thanks for having me.

MATTINGLY: One day out -- if you are running the Haley campaign what are you thinking right now?

MERRILL: What I'm thinking is I've got 36 hours to make my case. I mean, you've got to run like you're three votes down with three minutes to go. And so, what you see her doing right now is crisscrossing the state really trying to squeeze as many undeclared, Independent voters as possible to get them to take a ballot for her tomorrow night. And so, she's running out of room and running out of real estate, but she's working awfully hard right now to make that final argument.

MATTINGLY: In that final argument, what is the universe of those types of voters do you think exist at this moment in the race?

MERRILL: Yeah. I think a lot of people have made up their mind but New Hampshire is fickle. We see a lot of shift in the last weekend -- the last 24 hours. And so, a lot of it goes to momentum, and energy, and message.

And so, the Haley campaign is saying she can take it to Joe Biden. She can win and she's the one that can kind of bring the party together and build a broad coalition. So that's the argument she's making. And she's pounding the zone here in places Amherst, where we are, and heading out east towards the sea coast. That's where the bloc of the Republican voters are.

MATTINGLY: Chris Sununu, the governor -- popular governor -- nationwide popular and popular in this state --

MERRILL: Yeah.

MATTINGLY: -- as well -- has been hammering home the need for Nikki Haley. He's also kind of tried to play around the expectations game a little bit. Take a listen.

(BEGIN VIDEO CLIP) GOV. CHRIS SUNUNU, (R) NEW HAMPSHIRE, ENDORSED HALEY: She doesn't have to win. I mean, look, nobody goes from single digits in December to you absolutely have to win in January. Everything Nikki is trying to do is build on the momentum from Iowa -- two percent to 20 percent -- and build on even more momentum here.

The fact that she's knocked all the other candidates out -- nobody thought that was possible, but she's really knocked everybody out -- even Ron. I mean, I think Super Tuesday is probably where you actually have to start winning states.

But as long as the momentum keeps building into her home state, that's an amazing opportunity to turn this thing around.

(END VIDEO CLIP)

MATTINGLY: I'm not quibbling with anything he was saying but one thing I question is it just seems like this is it.

MERRILL: Yeah.

MATTINGLY: Do you think that there's space to get to Super Tuesday if Nikki Haley does not win tomorrow night?

[07:40:03]

MERRILL: I think -- I think it's difficult. I think it's difficult.

I mean, look, the governor is right. Nikki Haley really started here with nothing and she made an earlier investment in New Hampshire of her time. She embraced the New Hampshire culture -- the ethos of campaigning here, and that's gotten her to where she is. So she has a chance tomorrow. She's fought for that chance. She's earned that chance.

Having said that, they'd obviously have to come out with a win tomorrow. I don't think she has to win. But you've seen a lot of consolidation. You see Gov. DeSantis getting out yesterday. So there's going to be I think a big push to bring this field down to one after New Hampshire. So it's up to her to be that -- you know, be that underdog and fight through tomorrow and get -- and buy herself some time going into South Carolina.

MATTINGLY: When it comes to Trump and his voters -- I think he won -- it's off the top of my head, but 32-33 percent in New Hampshire back in '16. Won the primary after he lost Iowa. His voters, his base, his grip on the party just seems to -- feels so different now in this state, certainly than it did back then. Why?

MERRILL: Well, there's an intensity of his support, and you're absolutely right. Now look, Trump has never had a hold on New Hampshire like he has in other states. He won, as you point out, with mid-30 percent support in 2016 with multiple candidates in the field. It's stronger today than it was. And so, for months, he's been in around the mid-40s and so it suggests there's a path here. The challenge, of course, is that as Ramaswamy and DeSantis have dropped out, their voters are likely to break towards Trump.

And so I think what's happened is over the course of eight years you have had -- he's had the opportunity to shape the party, to mold people, and to bring people along with him. So he's got a very devoted, dedicated support of voters with him.

Nikki Haley has taken a different approach. She's trying to build a broader coalition with moderates and with Independents, which would be great for a general election, which is what's so attractive about Nikki Haley to a lot of people. She does very well against Joe Biden.

MATTINGLY: That's actually my last question because it's been fascinating to watch as Trump's lead in New Hampshire has grown over the course of the last couple of weeks based on tracking polls -- our polls as well. He loses to Joe Biden in head-to-heads in this state. Now granted, Biden won the state in 2020. It's kind of hued a little bit more blue, particularly on the federal side of things. But at a time when Joe Biden is losing head-to-head matchups pretty much everywhere in the country in all the key states, he wins here by a decent amount.

What should that tell Republicans about Trump going into a general?

MERRILL: You know, look, you're right. I mean, Joe Biden won handily here in 2000, while Chris Sununu won by one of the largest margins in our history. So I think from a Chris Sununu perspective, Republicans are tired of losing. We want to win at the federal level. And so, Donald Trump doesn't necessarily give us the best opportunity to do that next November.

Nikki Haley would seem to. So that's the argument she's been making. But right now, there is a big part of the party that wants to see that rematch Trump versus Biden. So we'll see tomorrow night if New Hampshire gives him that or not.

New Hampshire is stubborn and so is Nikki Haley, it seems like, so we like to mix things up. We'll see what happens.

MATTINGLY: A lot of money has been spent when people weren't necessarily paying attention to this state. We'll see if it has a big impact tomorrow.

Appreciate your time as always.

MERRILL: Thank you.

MATTINGLY: Well, calls are growing for the prosecutor in the Georgia election subversion case to step down as new purchases come to light in court. The details on that ahead.

And apologizing for an apology. The CEO of Texas-based Kyte Baby clearing up her comments after not letting an employee work from home to care for her newborn. That's next.

(COMMERCIAL)

[07:46:46]

HARLOW: We are live in New Hampshire. So glad you're with us on this Monday morning. It is less than 24 hours to go before voters head to the polls here.

We're also following developments in Georgia this morning where court filings reveal the prosecutor in the election subversion case there against Donald Trump bought airline tickets for himself and Fulton County District Attorney Fani Willis on at least two occasions, both for out-of-state travel. Those filings were made by prosecutor Nathan Wade's estranged wife as part of their divorce case proceedings.

Fani Willis, the D.A. there, is facing allegations of misconduct over an improper relationship with Wade. It was first alleged in the court filing by one of the Trump co-defendants. Mike Roman is a former Trump 2020 campaign official who was also indicted over his role in the fake electors plot.

Now, these allegations and these latest filings raise concern they could taint the case. One analyst who has praised Willis is calling for Wade to step aside.

(BEGIN VIDEO CLIP)

NORM EISEN, CNN LEGAL ANALYST, HOUSE JUDICIARY SPECIAL COUNSEL, FIRST TRUMP IMPEACHMENT TRIAL: If they asked me I would say, Mr. Wade, the right thing to do -- not mandatory, voluntary -- the right thing to do is to recognize your successes here and step away.

(END VIDEO CLIP)

HARLOW: That was CNN legal analyst Norm Eisen you just heard from. He joins me this morning. So glad to have you here.

I think it is surprising to some to hear you call for Wade to step away -- not Willis. You think she can continue with this case -- but Wade, her, chief prosecutor on all of this. Can you explain why?

EISEN (via Webex by Cisco): Good morning, Poppy.

Look, the law of disqualification in Georgia does not require either of them to step aside. It's not a disqualifying event for two prosecutors to have a relationship. But the challenge with Mr. Wade remaining on this case is that it's become a distraction from what is one of the most serious alleged conspiracies in American history.

Poppy, we all heard that January --

HARLOW: Um-hum.

EISEN: -- 2, 2021 tape when Donald Trump said to Georgia Secretary of State Brad Raffensperger just find 11,780 votes that didn't exist. That's where the focus needs to be. We need to get the case on track, moving quickly at trial -- it has been requested for 2024 -- and not discussing --

HARLOW: Yeah.

EISEN: -- this relationship. Not mandatory but he should do the right thing.

HARLOW: Well, one of the -- one of the questions here is Wade, this prosecutor, has made more than $650,000 on prosecuting this case, so far, paid through Willis' office. It's taxpayer money.

Mike Roman and his legal team -- one of the co-defendants here -- is saying their argument here is that by using that money to buy plane tickets to go on sort of tropical vacations is not OK. And what they're alleging here is that Willis could possibly be prosecuted herself for onus services fraud or federal racketeering.

Do you think that holds any legal water or is that a stretch?

[07:50:00]

EISEN: It's ridiculous, Poppy.

Mr. Wade is a former judge. He's an experienced lawyer. He's done a terrific job up until now leading this team. He's had a series of successes. The team he's led has defeated some of the most prominent attorneys in the country in a series of legal battles -- secured four guilty pleas.

He's working at what we call in the legal profession a low bono rate. A reduced hourly rate of $250 an hour. That is nothing unusual. He's worked hard for years. The sum he's earned is not unusual by legal standards. I know it might sound like a lot to average folks.

And people are allowed to have relationships. Prosecutors can do that. They can travel together.

HARLOW: No --

EISEN: That's silly. The law does not support it.

HARLOW: OK.

I do want to let people listen to Fani Willis. This is her speaking publicly about this and defending herself and defending Wade -- listen.

(BEGIN VIDEO CLIP)

FANI WILLIS, DISTRICT ATTORNEY, FULTON COUNTY, GEORGIA: All three of these special counselors are superstars. But I'm just asking, God, is it that some will never see a Black man as qualified, no matter his achievements? What more can one achieve? The other two have never been judges, but no one questions their credentials.

(END VIDEO CLIP)

HARLOW: Norm, Fani Willis has been subpoenaed in the divorce proceedings. She's trying to quash that subpoena. My question to you is would you advise her to comply with the subpoena

-- to say whatever she's asked, to answer the questions, and try and move on from there?

EISEN: I would advise her to attempt to confine the scope of the subpoena to relevant evidence. I looked at the available divorce papers and it appears that Mr. Wade's estranged spouse and Mr. Wade were already separated long before he came onto this case. If the information is not relevant to the divorce, Poppy, then there's no need for this deposition, if it is an attempt to harass or exploit.

But we don't have all the facts. Ms. Willis knows more. She should put that out there and if it's irrelevant she should object. If there's relevant information she should try to shrink the topics and narrow them down, but provide the information.

HARLOW: Norm Eisen, thank you. Good to have you.

EISEN: Thanks, Poppy.

HARLOW: We are down to the final two. It is Haley versus Trump. It's less than 24 hours now until the New Hampshire primary.

And how the White House plans to use Vice President Harris to take on Donald Trump and make the fight for reproductive rights front and center in the 2024 campaign.

(COMMERCIAL)

[07:57:50]

MATTINGLY: The Texas-based baby clothing company Kyte Baby is under fire this morning for its handling of an employee asking to work from home to care for her adopted baby in intensive care. The chief executive has now issued an apology.

(BEGIN VIDEO CLIP)

YING LIU, CEO AND FOUNDER, KYTE BABY: I wanted to hop on here to sincerely apologize to Marissa for how her parental leave was communicated and handled. It was my oversight that she didn't feel supported as we always have intended. I will be reviewing our H.R. policy and procedures to make sure to avoid hurting our staff and our community in the future.

(END VIDEO CLIP)

HARLOW: That apology also creating some backlash. Camila Bernal following all of this for us. What happened, and what is the company facing now?

CAMILA BERNAL, CNN NATIONAL CORRESPONDENT: Well look, a lot of people just said that first apology, Poppy and Phil, was not enough. People said it wasn't genuine. That it was scripted. And so, the CEO came back and said fine, I'll do another apology. And this time she went off script and said that she regretted not allowing this employee to work remotely while her baby was in the NICU.

So I want you to listen to part of that second apology. Here's what she said.

(BEGIN VIDEO CLIP)

LIU: This was a terrible decision. I was insensitive and selfish. I cannot imagine the stress that she had to go through. I fully realize the impact of my action, my decision, and my short-sidedness.

(END VIDEO CLIP)

BERNAL: Now, here is the backstory. This all started in December of last year when Marissa Hughes and her partner decided to adopt a baby. That baby was born prematurely and because of health reasons had to remain in the NICU.

The policy for Kyte Baby for Marissa was that she would get two weeks of maternity leave and then she would have to sign a contract saying that she would go back to work for at least six months after her leave. She was not able to sign that contract because her baby was still in the NICU.

So they released a statement, and I want to read part of it, where they said that yes, she proposed a remote-from-work option. But they said they didn't "feel that proposed plan would fulfill the responsibilities of her current position."

So they're saying that her job is there if she wants to return. And not only that but now they are saying they are also going to revise their company policy because of all of this.