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100 Days Since Russia's Invasion of Ukraine; Ukrainians Find Safety in Zaporizhzhia, But Can't Move On; African Union Leader Meets with Putin on Food Security; Queen Elizabeth Skips Second Day of Platinum Jubilee Celebrations; 390,000 Jobs Added to the U.S. Economy in May; Biden and Saudi Crown Prince to Meet Later This Month; Biden Calls on Congress to Pass Gun Laws; More Shanghai Neighborhoods Locked Down Days After Reopening; China and the West Wrestle for Influence in South Pacific; Biden Speaks About U.S. Jobs Report. Aired 10-11a ET
Aired June 03, 2022 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:00:39]
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): I can hardly it, she says, my legs are swollen. Can I just get back to Kherson or is this some kind of
cruel joke? Please, just let me die in Kherson, at home.
(END VIDEO CLIP)
BECKY ANDERSON, CNN ANCHOR: One hundred days into the Russia's war in Ukraine with little achieved, except bloodshed and pain. Plus.
Who's who of British royalty and politics at the jubilee celebrations with one rather significant absentee.
And an important first meeting with a key U.S. partner Joe Biden will meet face to face with Saudi Arabia's de facto ruler later this month.
Hello, I'm Becky Anderson in London. It's 3:00 p.m. here. Welcome to CONNECT THE WORLD.
One hundred days of war with no end in sight. Russia's unprovoked invasion of Ukraine has cost thousands of needless deaths and misery for millions
more. All the while, the Ukrainian military has defied predictions Russia would conquer the entire country within a matter of days or even hours.
Ukraine's president marking this somber milestone with a vow his country will win.
(BEGIN VIDEO CLIP)
PRES. VOLODYMYR ZELENSKYY, UKRAINE (through translator): The leaders of parliamentary factions are here. The president's chief of staff is here.
Prime minister of Ukraine Shmyhal is here. Podoliak is here. The president is here. Our team is much bigger. The armed forces of Ukraine are here.
Most importantly, our people, the people of our country are here. We have been defending Ukraine for 100 days. Victory shall be ours. Glory to
Ukraine.
(END VIDEO CLIP)
ANDERSON: Ukraine's military says its forces are still holding some areas of Severodonetsk. That is the main focus of Russia's offensive in the
Donbas right now. Russia controls most of the city. Thousands of Ukrainians remain there including some 800 said to be hiding in bomb shelters under a
chemical plant.
British intelligence assesses that Severodonetsk and its twin city of Lysychansk, likely will fall to Russia within a couple of weeks. At that
point, Russia would control all of the Luhansk region in the Donbas.
An intel report also summarizing where we are 100 days into this war. Stuck in the mud. It says Russia's other war objectives have so far failed at
achieving victory would take considerably more time at a continued huge investment of manpower and equipment.
Ben Wedeman connects us today from the Ukrainian capital of Kyiv. 100 days of war, many gave Ukraine less than 72 hours. I guess it does, though, beg
the question, what is being achieved? And what's next, Ben?
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, that's interesting because Dmitry Peskov, the Kremlin spokesperson, was asked that
very question today. And his response was telling. He said certain results have been achieved. And he focused on the Luhansk and Donetsk are in the
eastern Ukraine without mentioning the debacle which was the Russian military operation here around the Ukrainian capital.
What we have seen is that the amount of death and destruction has been massive. For instance, Russia now controls 20 percent of Ukrainian
territory compared to around 7 percent before the 24th of February. Thousands of people here in Ukraine have been killed, exactly how many we
don't know. But for instance, in the port city of Mariupol alone, the Ukrainian officials say as many as 21,000 civilians may have been killed.
Now President Zelenskyy is saying as far as the military that at this point in time, somewhere between 60 and 100 Ukrainian soldiers are being killed
every day. Most of them, of course, in eastern Donbas region where fighting is most intense. The Ukrainian parliament's Human Rights Committee says
that 38,000 buildings have been destroyed as a result of the war.
[10:05:09]
And the country's GDP has fallen by 35 percent. As far as Russia goes, they have also suffered huge losses, although Russian authorities have been shy
to say exactly how many men or how much equipment they've lost. But U.S. officials estimate that Russia's military strength overall, and I'm not
talking about just Ukraine, has been diminished by as much as 20 percent. Russia is now under about 5,000 targeted sanctions. $300 billion of its
foreign assets have been frozen.
We've have seen Sweden and Finland apply for membership in NATO. Europe is growing something of a backbone when it comes to Russia. So much has
changed and it certainly seems that sort of if you look at the balance sheet, Ukraine is holding on. It has defied all expectations. And the
Russian performance on the battlefield has been nothing short of catastrophic -- Becky.
ANDERSON: Ben, a defiant video from the Ukrainian president earlier on, flanked by other Ukrainian leaders, you know, certainly a sense that he
will not give up in the face of this Russian aggression. You are in Kyiv. What's the mood amongst sort of the average Ukrainians at this point? Does
it reflect that sense of defiance that we hear from the Ukrainian president?
WEDEMAN: Well, I mean, for instance, what we've seen here in Kyiv is that many of the people who fled as Russian forces were approaching the city
have returned. When you drive around the capital, it looks like a nice European city enjoying warm early June weather. But I think beyond the
surface appearances, I think there is an understanding among ordinary people that perhaps victory will come at some point.
But the struggle in the war is going to be difficult. The war is going to be long and the cost for ordinary Ukrainians and Russians will continue to
mount -- Becky.
ANDERSON: Ben Wedeman is in Kyiv for you on the ground in Ukraine.
I want to bring in Jill Dougherty -- thank you, Ben -- CNN's contributor in Russian affairs and former CNN Moscow bureau chief.
Ben, we just heard -- sorry, Jill, we've just heard from Ben on the ground in Kyiv, getting us a sense on the perspectives through the eyes of the
Ukrainian authorities and people. What's your assessment of where this war is after 100 days? And where it might go next?
JILL DOUGHERTY, CNN CONTRIBUTOR, RUSSIAN AFFAIRS: You know, the word that comes to mind really, Becky, is this kind of grinding on. The way I look
at, I think Putin has changed the goalpost at least three times. You know, concentrating on Donbas in the beginning, saying it was genocide against
the Russian speakers in that region. And then broadening it to the rest of Ukraine, unable to accomplish that. Then moving back and concentrating on
the east and in the Donbas and that region down to connect to Crimea.
But I think, you know, it really is the head of NATO did call it or predicted that it would be a long of attrition, and I really do believe
sadly that that is what we are looking at right now. And why I think that is that, you know, I watched the Russian side of this because that is my
area of experience and expertise. And right now in Russia, I really do believe that President Putin is trying to make the Russian people and the
world kind of forget about this war because there is not a happy, strong feeling, you know, that Russia is victorious.
It's a very dark mood in Russia. I was there in March, and I just came back, by the way, a few days ago from the Baltics. And in Russia right now,
it's this feeling that, you know, it has to continue that we are under attack, that NATO maybe not even Ukraine, it's really NATO, the West and
most of all the United States, that are the danger to Russia. And I think if I were to sum it up Id' say there's a lot of kind of anger and
resentment of the West.
But also a balancing between that, Becky. And this is a hard thing, I think, for Putin. He has to keep his people angry and furious at the West.
At the same time that he is faced perhaps with the decision about mobilizing the entire country. And I don't think you can kind of, you know,
blend those.
[10:10:03]
He's been trying to keep the Russian people feeling that this war is not really costing them as much as it actually is. But if he mobilizes, it
would be very obvious that it is going to cost every Russian. So it's -- as I said it's a dark feeling.
ANDERSON: It's good to get your analysis. Good piece on CNN today on Digital by our former Moscow bureau chief, Nathan Hodge, entitled "After
100 Days of War Putin is Counting on the World's Indifference." You described it as Putin hoping that the rest of the world would just sort of
forget that this was going on. I think that that sense of indifference certainly is one that -- that hope of a sense of indifference is one that I
think Putin is holding out for.
And to a certain extent, you know, there may be something in there because, although we are seeing the unity holds in Europe, Europe continues with its
sixth round of sanctions, for example, as it continues to try and, you know, stop the amount of money that Russia has got to fund this war, you
know, there is a sense of war fatigue at this point, isn't there?
DOUGHERTY: Absolutely, and I think, you know, it's in the West, I think it's also in Russia. And that would play very well for Putin because if the
world does forget about Ukraine, then the support for Ukraine diminishes and at the same time I think that Putin's other objective is no question
divide the West. Divide NATO, divide the West, do what you can just to tear away that unity, that really is quite unique. It was built up at the
beginning of the war. And those two things really just exactly what he would want to happen.
ANDERSON: Jill, it's always a pleasure. Thank you very much indeed for joining us. Our viewers who have been with us over the years will know Jill
was for many years the Moscow bureau chief for CNN.
Thank you Jill.
Well, let's take a closer look at the situation in southern Ukraine. A Ukrainian military official says it is systematically counterattacking
Russian troops in the Kherson region. As the fighting steps up in the south, many desperate Ukrainians have fled for the relative safety of
Zaporizhzhia. That's where CNN's Melissa Bell talked with some of them.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN CORRESPONDENT (voice-over): Alive and safe, but stuck in Zaporizhzhia. Some of the families that fled the Russian bombings of
southern Ukraine, others have just found themselves on the wrong side of a line that has hardened. Some of these families now living in their cars
have been here for weeks.
Olena Babak (PH) came from the Black Sea town of (INAUDIBLE) to buy medicine for her elderly parents. She's now living with others in the open
air.
Look, she says, he's just had surgery. My husband is without a leg, this grandmother is recovering from a stroke.
I can hardly sit, she says. My legs are swollen. Can I just get back to Kherson or is this some kind of cruel joke? Please, just let me die in
Kherson, at home.
Some of the families bring in their anger to Zaporizhzhia's regional administrative building.
UNIDENTIFIED MALE: What's the problem? Why?
BELL: Like Alexei Ismailov (PH) who fled Mariupol with his wife but has had no contact with the rest of his family for three months.
UNIDENTIFIED MALE: The steel state in Mariupol, and three months I don't have any contact. What happened with my cousin? With my sister? I like to
come back and help, I like bring them to Ukraine.
BELL: Marina Natanova (PH) who's in charge of social services for the greater Zaporizhzhia region, says humanitarian aid has been hard to bring
because her teams to the south of the city are now without communications. She tells us that it will also be necessary to tell those trying to return
of the dangers they face.
It's very dangerous there, she says. So this will be discussed with them at this new filtration camp. To find out why they want to go and whether they
understand the risk. She says that beyond the water already being provided here, there will soon be a medical center, showers and a room for mothers
and children. For now, these families wait. Just hungry to get home.
Melissa Bell, CNN, Zaporizhzhia.
(END VIDEOTAPE)
ANDERSON: Much of the world has shunned Vladimir Putin for launching the war in Ukraine. Not all of it.
[10:15:01]
But the head of the African Union traveled to Russia to meet with Mr. Putin, Senegalese President Macky Sall spoke to the Russian leader about
how the war is impacting food supplies in Africa. Ukraine says half of its grain harvest has been lost and what has been harvested cannot be shipped
because of Russian blockades.
CNN David McKenzie has been tracking African reaction to what's happening in Ukraine. He joins us now live from Johannesburg.
Look, you know, we talk about sort of the world's outrage. We are also, it has to be clear, you know, looking at a divided world here. Much of which
has been relatively neutral on this including many African nations. Just explain what we understand this meeting to have been about. And what impact
this war is having on particularly Sub-Saharan Africa?
DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, Becky, you raised a very important point because while the solidarity amongst NATO countries
has been pretty uniformed and very robust in the reaction to Russia's invasion of Ukraine, it is a much more complex picture around the world.
And not just countries in Africa that are kind of standing on the sidelines, not commenting either way, there have even been countries that
have been pro-Russia in their outlook.
Now interestingly just a short time ago the Kremlin dropped in their estimation a readout of this meeting. They said that Putin praised the
emergence of the African countries as a global player, as you might expect, given the circumstances. But interestingly it said that the chairman of the
African Union, the Senegalese president, explained to Putin that Africa does have diverse viewpoints and specifically said, and it must be said
according to this Kremlin readout, that there were several countries that have yet to condemn Russia at the United Nations.
What I didn't talk about is a critical problem that many countries face on this continent and in parts of the Middle East is the impact of the grain
blockade that Russia has forced on Ukraine and the sanctions that Russia is also struggling to get its grain and particularly fertilizer out. Many
countries on this continent could face very severe crisis in the coming months because of that, if this war continues beyond 100 days as it will --
Becky.
ANDERSON: David McKenzie on the story for you. Thank you.
Just ahead.
Those bells rang up from one of the world's great cathedrals, Britain's Queen Elizabeth is praised for staying the course. And she was sorely
missed at this event. I'll explain why she didn't turn up after this.
(COMMERCIAL BREAK)
[10:20:11]
ANDERSON: A promise made and kept. 70 years of constancy for Britain and for the Commonwealth by Her Majesty Queen Elizabeth II.
And a short time ago members of the British royal family as well as representatives from the Commonwealth and those who do good without fun
fare gathered at St. Paul's Cathedral in London to honor the Queen at the platinum jubilee service and thanksgiving.
A poignant note here, we are told the Queen watched the service from her home in Windsor. The 96-year-old monarch forced to skip the occasion after
experiencing some discomfort on Thursday during what was the kickoff to jubilee celebrations. But today this happened.
Well, as St. Paul's bells rang out, cheers went up for the arrival of Prince Harry and his wife Meghan. The first time that they've been seen in
public in Britain for more than two years.
Well, joining me now is CNN royal historian, Kate Williams. And that is the big bell at St. Paul's, newly-reconditioned for the occasion as the Brits
wanted to do. And boy, did it rang out an appeal this morning. And for the celebration of the Queen's jubilee, a service which was not attended by Her
Majesty. Why is that, Kate?
KATE WILLIAMS, CNN ROYAL HISTORIAN: Yes, it was very poignant that she wasn't able to attend. So many people there celebrating her reign,
celebrating also her role as head of the church of England. She wanted to be there but we understand that there were a real mobility problems after
yesterday. It was obviously a long day standing outside on the balcony. She is nearly 100. She's been in such incredible health throughout her reign.
We really -- if we think back 10 years ago, Becky, you and I watching the Diamond Jubilee, it did seem possible just in the London Olympics that she
might have been jumping out of a helicopter but no longer. And really I think it's incredible how much she's done. She obviously felt it was too
tiring yesterday and to watch it from home. But it will be really, really hard for her to watch it from home because this was a great celebration of
her reign. 70 years on the throne. Both of the Queen and also how much Britain has changed.
ANDERSON: Four days of events, a couple of days of decent weather. It is expected to lash with rain over the weekend. But that will not stop people
having street parties, et cetera. Four days of celebrations that the other members of the royal family then will be very much a part of. Aside from of
course William and Harry -- sorry, Harry and Meghan who are not working royals anymore, but there were cheers when they arrived to St. Paul's
Cathedral today.
WILLIAMS: Huge cheers.
ANDERSON: What do you make of that?
WILLIAMS: Huge cheers when they arrived. Absolutely huge cheers. I think people are thrilled to see them back in the royal fold. They're thrilled to
see the family together again. And there really does seem to be a lot of movement there, a lot of friendship. We understand that the Queen met
Lilibet, her latest great grandchild yesterday and will be attending a little birthday party for it at Frogmore Cottage. And I think really once
we see outside to some of the press coverage of Harry and Meghan which has been very negative, we start to see that really this is a family and they
are there to support the Queen.
ANDERSON: Watching an event like this and knowing that we'll never see, and we're very unlikely to see another jubilee, I suppose you shouldn't say
never again, but, you know, it's very likely that at some point it will be King Charles. What happens to the royal family at this point? What's the
sense? Will they be going forward? What's their relevance these days?
WILLIAMS: Well, that's a good question. This is a celebration that we're seeing this huge spectacular party, the Trooping the Colour yesterday. Is
it for the Queen, for her, or is it for the monarchy? And it is my feeling, my suspicion that quite a lot of it is about the individual, the young
woman promised at 19, you know, when she was just young in 1947 that she would serve her whole life. She came to the throne in '53, seen the whole
of the 20th century.
I think there's going to be a change when Charles comes to the throne and I think that many countries we already know are going to no longer have the
monarch head of state. Barbados has moved, Jamaica said they will, Australia, Antigua, Beliz also, that's going to change. And I think there
will be more questions about transparency, about spending, that I think historians of the future will look back on this monarchy, on this day, as
really marking the high watermark of monarchy.
ANDERSON: She's a very discreet woman. Will she have been enjoying this?
WILLIAMS: Well, she -- the palace tends to say that the Queen doesn't really care that much about milestones. But in her heart, they are
important to her and I think she was thrilled to see the crowds yesterday, all the celebration, all the popularity.
[10:25:02]
She knows that she's been through good times and bad times. Been really difficult, real drops in popularity such as the 1990s, the death of
Princess Diana. But now at the end of her reign, she is seeing all this love for her. I think it's so gratifying.
ANDERSON: Always a pleasure. Been sometime.
WILLIAMS: Good seeing you.
ANDERSON: Nice to see you.
You can find all the very latest on the Queen's platinum jubilee at CNN.com including more about the French president's gift of a horse to mark the
occasion.
Well, almost 20 years ago, photographer Rob Munday shot the first ever holographic portrait of the Queen. Well, now he has unveiled a new portrait
to celebrate her platinum jubilee. He says the image had been sitting untouched in his personal archive all of this time. Have a look at this.
(BEGIN VIDEO CLIP)
ROB MUNDAY, HOLOGRAPHIC PHOTOGRAPHER: I have taken this short video sequence. It was only one second long. And I completely forgot about it.
It's laying on the hard drive for nearly 19 years. But I was (INAUDIBLE), so I looked inside this directory and saw that there were 32 frames in
total. And I, you know, thought I'd have a look at them. But as I was scanning through right in the middle there was just this one frame that
just kind of leapt out at me.
The frames to either side of it, again, would have been totally unusable, this one was almost God given if I'd say so. It was just a beautiful image.
And I just thought, you know, I looked at it, kept looking at it. And then you start asking yourself the question, is it really good? Or is it just me
wanting it to be good? So of course I got people to come and have a look. My wife, being one of them, I said, what do you think of this? I said it
looks completely natural, unposed, very beautiful. She is full of life. She has that whimsical smile, a twinkle in the eye.
It was a very jovial atmosphere for that sitting and jokes were being told. And people were laughing all the time. Angela Kelly, her very, very long-
term personal assistant, dressed her and a very, very good friend of the (INAUDIBLE) said something funny that precise moment. I hadn't realized
when I actually did the shot, it was just a coincidence. This is why I just loved it so much because it's just a really, really natural portrait. I
mean, a lot of people have told me that they've never seen a portrait quite like it.
(END VIDEO CLIP)
ANDERSON: All right. Let's get you up to speed on some of the other stories that are on our radar right now, folks. Much of the world marks Pride
Month, Kuwait summoned the U.S. embassy's charge d'affaires over this tweet quoting President Jode Biden saying LGBTQI people should be treated with
dignity and be able to live without fear. Homosexuality and being transgender is illegal in Kuwait. Its Foreign Ministry said the U.S.
embassy should respect its laws and not publish such tweets.
Well, with prices soaring around the world, Turkey is seeing a 24-year spike. Inflation for May was up by 73.5 percent over the last year. That's
the highest rate since 1988 driven by skyrocketing food and fuel costs as it becomes harder for people to afford just the basic necessities.
In southern Germany, at least four people are dead and 60 injured in a train accident in the Alps. Rescue operations are ongoing. Local media
reports school children were aboard that train. Today was the last day of school in the Bavaria region of Germany.
Well, you're watching CONNECT THE WORLD. I'm Becky Anderson.
Coming up, not long ago, Joe Biden castaway Saudi Arabia as a pariah state. Well, now he seems to have had a change of heart. Why? We'll discuss that
up next.
(COMMERCIAL BREAK)
[10:31:15]
ANDERSON: I'm Becky Anderson. You're watching CONNECT THE WORLD live from London where the time is half past 3:00.
The U.S. jobs report for May was just released and the good news, maybe also bad news, here's why. Employers added 390,000 jobs to the U.S. economy
last month. That was more than was expected. The unemployment rate stayed at 3.6 percent. That is still near record low territory. However, if jobs
growth remain solid, and Americans have more money to spend, that could of course continue to push up inflation. And that could force the Fed to
tighten economic conditions more aggressively.
Well, the U.S. President Joe Biden is expected to comment on the job situation any moment now. And we'll get to him when he does. First, let's
bring in CNN correspondent Rahel Solomon to further break down these numbers.
I mean, the Fed is really stuck between a rock and a hard place at this point, isn't it? What's the current thinking about what they do next to
deal with this U.S. economy?
RAHEL SOLOMON, CNN CORRESPONDENT: Good to be with you, Becky. Yes, you know, I spoke with one economist after the numbers crossed and asked, you
know, from your perspective, what does this jobs report mean for the White House and for the Fed? And she said, look, they will be pleased with this
report because yes, to your point, Becky, it was higher than expected. That top line number of 390,000 jobs being added.
It is a signal that jobs may be cooling. I want to show you sort of job growth the last few months. This 390,000 the lowest we have seen in more
than a year. That number has usually hovered at least at 400,000. When you take a look at April, 436,000. March was revised to about 300,098. So,
again, so close to 400,000 for the last 12 months, and of course there have been some months like February where we saw quite a bit more, 714,000.
So the fact that we're now starting to see, Becky, numbers come in that are in the three's, that is a sign of a slowing in the economy which the Fed
wants to see, which the White House wants to see. Of course we got President Biden's op-ed earlier this week which started to warn and started
to suggest that in this new phase of the economy we're in, this maturing of the economy and the expansion that we have been, and we will see lower jobs
growth.
I also want to tell you, Becky, where the jobs are in this jobs report. Looks like leisure and hospitality adding another 84,000 jobs. Professional
and business services, another 75,000. And perhaps very importantly, transportation and warehousing. Truck drivers being added. We know there
have been such a shortage of truck drivers so. 47,000 being added to the economy here. So yes, to Nela Richardson's point, the Fed is going to want
to see this because as we know, and as we talk about quite often, the Fed is trying to bring about a slow landing, an easy landing.
They don't want to sort of pump the brakes on the economy. And so the numbers sort of trailing down as a sign that that could be happening. We
know we are going to hear from President Biden shortly on the jobs report. Of course we will bring you those comments when they cross. But we have
been hearing, we heard that op-ed earlier this week from President Biden that jobs would start to slow.
You could argue, however, that they would like to see numbers in the one range. About 150,000 jobs being added because as it stands now, and as it
has, Becky, the jobs market has been so hot. There has been so much demand for workers that there are about two open jobs right now for every
unemployed worker. So what the Fed is trying to do is bring a bit of balance in the jobs market and sort of bring that number sort of, you know,
to meet an unequal point without having to really increase joblessness.
So it is a tough job for them. Remains to be seen if they will be able to pull it off in terms of this soft landing and being able to avoid a
recession.
ANDERSON: Nobody said it was easy. I mean, Jamie Dimond talking about facing a hurricane.
[10:35:02]
Elon Musk saying he doesn't like the look of where the economy is at present. I mean, much talk, much talk of, you know, a recession out there
potentially. That is what the Fed is trying to head off at the moment while ensuring that they don't allow that economy to take off too much.
Thank you, Rahel, it's good to have you on.
While the state of the economy remains a vital domestic challenge internationally Joe Biden has got a full plate and perhaps a changing tone
at least. For the first time since taking office, the U.S. president will meet face to face with Saudi Arabia's de facto ruler, Crown Prince Mohammed
bin Salman, later this month. Now this after campaigning on making Saudi Arabia a pariah state and actively avoiding the crown prince also known as
MBS for almost two years.
Now this announcement comes after two key deals were reached on Thursday. OPEC Plus agreeing to boost oil production by 200,000 barrels per day in
the summer months and the extension of a U.N. brokered truce in Yemen. Now both of those have a Riyadh dimension of course. Officials tell CNN the
timing of the announcements is deliberate and is laying the groundwork for a likely meeting between the two leaders.
I want to bring in CNN White House reporter Natasha Bertrand who's been following the details around this announcement closely. She joins me now
live from Washington.
As I understand it, we don't actually have a date confirmed. But it's looking like a trip at the end of the month and we are well aware that
relations Riyadh and Washington, a key U.S. partner in the Middle East region have been very strained over the past couple of years. So we know
there's been some work behind the scenes going on. These two key announcements, though, clearly helping repair this relationship -- Natasha.
NATASHA BERTRAND, CNN WHITE HOUSE CORRESPONDENT: Major diplomatic breakthroughs, that is what our sources are describing this as. Especially
the announcement by OPEC Plus that it will increase production of oil by about 200,000 barrels per day in July and August. Now that is not that
much, right? But for the Biden administration, which has been essentially pleading with OPEC and the Saudi Arabia, frankly, for the last year to
increase production and getting flatly rejected at every turn, it is a big deal.
And what officials are crediting that to is their diplomatic heavy lifting over the last year to repair the relationship between the U.S. and Saudi
Arabia which of course had been very damaged by President Biden's mentality towards the Saudis which has been to make them a global pariah. That is
what he campaigned on. He has said that he is very opposed of course to their long -- their litany of human rights abuses and he has not spoken
with MBS directly since taking office.
He has preferred to speak with his father, the king of Saudi Arabia, kind of cutting MBS out deliberately. So this is a big deal and it's a big
turnaround for the U.S.-Saudi relationship. And it's a recognition that the Saudis are going to be necessary for U.S. national security policy, for
U.S. economic policy, especially as the United States tries to isolate the Russians increasingly of course as a result of the war in Ukraine.
They recognize, and this is kind of real politic winning here, that they need the Saudis kind of in their orbit to have a solid relationship with
them despite the human rights abuses of course that Joe Biden has called out repeatedly. So this is likely to get some heat back at home
domestically. Groups are already calling out the Biden administration for this seeming reversal saying that it is, you know, not consistent with his
promise to put human right back at the center of foreign policy, to meet directly with MBS.
But this is really a success of two key members of his administration who have been traveling back and forth to Saudi Arabia for months and months
trying to repair this relationship, Becky.
ANDERSON: Fascinating. And we work out of the region and so it's been clear that there has been much work going on behind the scenes. And it's
interesting to see where this is landing at present. Thank you.
Right, we are going to take a very short break.
(COMMERCIAL BREAK)
[10:41:30]
ANDERSON: Well, in the United States President Joe Biden delivered a primetime address Thursday night demanding a response from lawmakers to an
epidemic of gun violence in America after what has been a series of deadly mass shootings.
This report filed by my colleague Jeremy Diamond.
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT (voice-over): After a spate of mass shootings.
JOE BIDEN, PRESIDENT OF THE UNITED STATES: How much more carnage are you willing to accept? How many more innocent lives must be taken before we say
enough?
DIAMOND: President Biden making his most fervent and specific appeal yet for stricter gun laws.
BIDEN: We need to ban assault weapons and high-capacity magazines. And if we can't ban assault weapons, we should raise the age to purchase them from
18 to 21. Strengthen background checks, enact safe storage law and red flag laws. Repeal the immunity that protects gun manufacturers from liability.
Address the mental health crisis.
DIAMOND: The president demanding action during a rare primetime address. As a somber line of 56 candles burned behind him representing victims of gun
violence from every U.S. state and territory.
Biden's speech comes after he and the first lady visited the grieving communities of Uvalde, Texas, and Buffalo, New York. He implored the
country and Congress to act now.
BIDEN: After Columbine, after Sandy Hook, after Charleston, after Orlando, after Las Vegas, after Parkland, nothing has been done. This time that
can't be true.
DIAMOND: The president stressing this isn't about harming lawful gun owners.
BIDEN: I respect the culture and the tradition. The concerns of lawful gun owners. At the same time, the Second Amendment like all other rights is not
absolute.
DIAMOND: And arguing guns are the number one killer of children in this country, according to the CDC.
BIDEN: More than car accidents, more than cancer, over the last two decades, more school age children have died from guns than on-duty police
officers and active-duty military combined.
DIAMOND: Biden hasn't ruled out additional executive action. But as a bipartisan group of senators negotiate a potential compromise package, the
president saying it's now up to Congress to act. On Thursday, the House Judiciary Committee met for a 10-hour long session during a recess week to
debate a gun reform package. One measure included, Biden's proposal to raise the age to purchase some assault rifles from 18 to 21. That package
was passed along a party line vote.
MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: What's wrong with raising the age for semiautomatic rifles?
REP. JIM JORDAN (R-OH): It's constitutional, even the Ninth Circuit just said it was unconstitutional.
REP. DAVID CICILLINE (D-RI): Spare me the bullshit about constitutional rights.
DIAMOND: But in Senate, that proposal faces stiff Republican resistance. A political reality Biden acknowledged.
BIDEN: Don't tell me raising the age won't make a difference. Enough, my God. The fact of the majority of the Senate Republicans don't want any of
these proposals even to be debated or come up for a vote, I find unconscionable.
(END VIDEOTAPE)
ANDERSON: That's Joe Biden delivering that message to the American people last night, Jeremy Diamond reporting for us there.
We are waiting to hear from the U.S. president, Joe Biden. The latest jobs numbers out of the States have just been released.
[10:45:02]
The numbers are, face of it, looked pretty good. But that's the fear that this economy needs slowing down somewhat. The president will address the
U.S. economy. As soon as he does we will get to that. Meantime, several Shanghai neighborhoods have been put back into lockdown due to a handful of
positive COVID tests. The shutdown came just a day after the Chinese government reopened much of Shanghai.
The city had been like a ghost town for two months due to what has been this incredibly strict zero COVID policy.
Selina Wang with the latest for you.
(BEGIN VIDEOTAPE)
SELINA WANG, CNN CORRESPONDENT: Freedom was short-lived for many in Shanghai. Just a day after the city started exiting a brutal two-month
lockdown multiple neighborhoods were placed back under lockdown for 14 days. Starting on June 1st, Shanghai began allowing most of its 25 million
residents to leave their communities. But nearly two million were still confined to their homes because they have recent COVID cases in their
areas.
Now the policy across China is that every positive COVID case and close contact must go to quarantine facilities. The community where the cases are
found also then go into lockdown. So as a result of just seven new COVID cases in Shanghai, more than 100 people were sent to government quarantine
and four neighborhoods were sealed off. People in Shanghai still remain on edge, haunted by fears of a renewed lockdown.
On Thursday morning, crowds were seen fleeing from a mob because people feared a COVID case was found in the mall was going to lockdown. The mall
later said it temporarily closed to disinfect without confirming whether there was a COVID case there.
In cities across China, including Shanghai and here in Beijing, a recent COVID test is necessary to enter public areas. I have gotten used to
regularly waiting 30 minutes or an hour just to get my test. Our lives are also dictated by health codes on our phones that track our movements. If
our code is green we can enter public areas. If they turned red we have to isolate at home or go to quarantine.
Zero COVID is not going away anytime soon in China. And neither will the disruptions to people's daily lives.
Selina Wang, CNN, Beijing.
(END VIDEOTAPE)
ANDERSON: Well, a game of geopolitical chess is being played right now, and South Pacific and China just came up short in the latest rounds. CNN's Ivan
Watson has the details of what's worked and what has not for Beijing.
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): To many outsiders, island nations in the South Pacific are a tropical paradise.
Exotic and remote. And yet the focus of intense diplomatic activity from China. Part of a Chinese push for influence that's turning the Blue Pacific
continent into a zone of geopolitical competition between China and its Western rivals.
(On-camera): China's foreign minister has been leading a delegation on a whirlwind 10-day tour across the South Pacific. Meeting face to face or
virtually with officials from at least 11 different Pacific Island nations. Most of these countries entire populations are dwarfed by even a small
Chinese city.
WANG YI, CHINESE FOREIGN MINISTER (through translator): Don't be too anxious, don't be too nervous, because the common development of the
prosperity of China and all other developing countries would only mean greater harmony, greater justice and greater prosperity of the whole world.
WATSON (voice-over): The last time great powers competed in the South Pacific was World War II where the U.S. and its allies fought a grinding,
island hopping military campaign against Japan. Since the war, many Pacific Island still have close ties to the U.S. and its Western allies. But in
March, that status quo shaken with the leak of a secret security agreement between China and the Solomon Islands signed the following month. It allows
the Solomon's government to call for help from Chinese police and armed forces. In May the release of another proposed document.
(END VIDEOTAPE)
ANDERSON: And let me get you to Washington where the U.S. president is about to speak. Let's listen.
BIDEN: And what we're doing to lower the costs for American families. I know that even with today's good news a lot of Americans remain anxious and
I understand the feeling. I grew up on a family about 100 miles from here that if the price of gas went up they felt it. It was a discussion at the
kitchen table. And there's no denying that high prices, particularly around gasoline and food, are a real problem for people.
But there's every reason for the American people to feel confident that we'll meet these challenges because of the enormous progress we've made on
the economy, the Americans can tackle inflation from a position of strength, still a problem we can tackle from position of strength. The
purpose that we've set out to accomplish and the progress we've made I think is critical.
[10:50:04]
At the time I took office about 16 months ago, the economy installed and COVID was out of control. Today, thanks to the economic plan and the
vaccination plan that my administration put in action, Americas achieved the most robust recovery in modern history. Just two years removed from the
worst economic crisis since the Great Depression. The job market is as strong as it's been since just after World War II.
We've got more evidence of that today. We learned that in May the economy - - new jobs bringing the total since I took office to 8.7 million new jobs. An all-time record. We learned that more Americans entered the labor force
in May. In fact working age people have come back into the workforce at a faster rate in this recovery than at any point in the last 40 years. That
means that the unemployment rate is near historic close and the number of Americans on unemployment benefits has gone from record highs to record
lows, with millions of Americans moving up to better jobs with better pay.
American manufacturing is booming. 600,000 new manufacturing jobs created since I took office. But it isn't only about jobs. Since I took office,
families are carrying less debt. They are average savings are up. Recent survey from the Federal Reserve found that more Americans feel financially
comfortable than any time since the survey began in 2013. That confidence and comfortability is part of the reason why America has applied to start
more new small businesses last year than ever before in American history.
And because of our historically strong growth, we have strengthened Medicare and Social Security programs that millions of American families
rely on. Yesterday, I learned the Social Security and Medicare trust will be able to pay benefits for longer than previously projected before we
passed the American Rescue Plan. The reason, a faster unexpected recovery in jobs, earnings, economic growth that's all strengthened the financial
prospects for these bedrock programs.
In fact America's stronger economic -- in a stronger economic position today than just about any other country in the world. Independent experts
have projected that the U.S. economy could grow faster than China's economy this year. That hasn't happened since 1976. Nearly one-half century ago.
The point is this. We've laid an economic foundation that's historically strong. And now we're moving forward to a new moment where we can build on
that foundation.
Build a future of stable steady growth so we can bring down inflation without sacrificing all the historic gains we've made. And that's what
we're beginning to see today's job report. With today's numbers, the jobs over the last three months have averaged about 400,000 jobs per month.
That's historically robust and a sign we're beginning to shift to steady growth after rapidly recovering 600,000 jobs over the prior six months.
And as we move to a new period of stable, steady growth, we should expect to see more moderation. We aren't likely to see the kind of blockbuster job
reports month after month like we had over this past year. But that's a good thing. That's a sign of a healthy economy with steady growth, rising
wages for working families, everyday costs easing up, and shrinking the deficit. That stability puts us in the strong position to tackle what is
clearly a problem, inflation.
I have been very clear that fighting inflation is my top economic priority. On Tuesday I spoke about one element of my inflation plan, giving the
Federal Reserve the space they need to operate. Today I'd like to address the two additional elements of my plan to tackle inflation. One, bringing
down the cost of everyday goods for families. And two, bringing down the federal deficit at the same time.
Bringing down the costs, here's where we stand. The two challenges on the minds of most working families are prices at the pump and prices at the
grocery store. Both of these challenges have been directly exacerbated by Putin's war in Ukraine. The price of gas is up $1.40 since the beginning of
the year when Vladimir Putin began amassing troops at the Ukrainian border. This is the Putin price hike.
Putin's war has raised the price of food because Ukraine and Russia are two of the world's major bread baskets for wheat and corn. The basic product
for so many foods around the world. Ukraine has 20 million tons of grain in storage right now, has been in storage since the last harvest. Normally
that would have already been exported into the world market. But because of Putin's invasion and the blockade of the port which they could take that
grain out for the rest of the world, it's not. It's not.
[10:55:06]
And look, I understand that families who are struggling probably don't care why the prices are up. They just want them to go down. Joe, what are you
going to do to bring them down? But it's important that we understand the root of the problem so we can take steps to solve it. I have been up front
with the American people from the outset. That there would be a cost here at home of Putin's decision to brutally and savagely invade a sovereign
nation.
But as your president, I remain committed to doing everything in my power to blunt the impact on American families. That's exactly what I'm doing. I
led the world to coordinate the largest release of global oil reserves in history. 240 million barrels to boost global supply and keep prices from
rising even more. I directed the sale of gasoline using homegrown biofuel this summer. And I'm working closely with our European partners to get more
of the grain locked in Ukraine right now out in the world market which could help bring down prices.
There's ways to do that over land which we could talk about at another time. But actions have already helped to blunt that what would have been an
even larger Putin price hike. As I said, I am going to continue to use every tool available to me to further blunt those price hikes as we move
forward. But the fact is this, there's more than one way to solve this problem. Food and gas prices are going to be elevated by Putin's price
hike, one way we can make things a little better for families is by helping them save on other basic items that family needs on a monthly basis.
Like their utility bills, their internet bills, their prescription drug bills, and other costs like housing. My goal is to make sure at the end of
the month families have a little more breathing room than they have now. For example, here is something we can do right now. Congress could help
ease the cost for families right away by passing my clean energy investment proposal -- that I proposed. It's been sitting there.
Things like tax credits for businesses to produce clean energy. The tax cuts for families to make their homes more energy efficient, that's what it
results in. I met with nearly a dozen CEOs of America's largest utility companies such as Southern Company and American Electric Power. They told
me that if we pass the investments, they will make immediately lower -- they'll immediately lower the average families' energy cost by about $500 a
year. That will help a lot. It'd make up for a lot.
In the long run, it would help families make America truly energy independent. So in the future, American families are no longer subject to
the whims of a dictator half a world away controlling oil. It's not just utility bills -- lower prescription drug costs by giving Medicare the power
to negotiate with the pharmaceutical companies and how much they can charge just like they do with the Veterans Administration.
Right now -- more than X amount of dollars for your insulin. Well, they can decide not to sell it at all or they can sell it at the price that the
government says they'll pay for. Bringing down the average cost of prescription drugs by capping that cost, by the way, no more than $35 a
month. It costs less than 10 bucks to make it. And some families, that means hundreds of dollars a month and sometimes hundreds of dollars a year,
depending on what ailment they're trying to deal with.
Someone with diabetes, for example, it's hundreds of dollars per year. Someone with arthritis could be thousands of dollars per year. I've laid
out a plan to lower rent and mortgage cost. The largest cost most families face around a third of a typical family's budget because we have shortage
of housing. Building more than a million more housing units in closing the shortfall in affordable housing in this country will do that.
I've laid out a plan to lower the cost of high-speed internet by working with the 20 leading internet service providers to cut their prices and
raise their speeds for tens of millions of households. This could lower what they have to pay for high-speed internet by $50 a month or more. And
nearly 40 percent of households in America qualify for these savings.
And by the way, you can find out if you are eligible by visiting getinternet.gov. Getinternet.gov. Say it again, getinternet.gov. To see if
you qualify. I've laid out a plan to lower the cost of everyday goods that move through our supply chains to storage and family's doorsteps. For
example, at the State of the Union I called on Congress to crack down on foreign-owned shipping companies that have raised their prices to transport
goods by as much as 1,000 percent. 1,000 percent. And that obviously raises the cost of the goods on those ships to consumers.
(END)
END
