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Farmer in U.S. Says Costs Too High to Plant Tomatoes; Russia Deploys Iranian Drones to Target Infrastructure in Kyiv, Ukraine; Georgia Republican Senate Candidate Herschel Walker Continues Denying Allegations He Paid for Girlfriend's Abortion. Aired 8-8:30a ET

Aired October 17, 2022 - 08:00   ET

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

[08:00:00]

AARON BARCELLOS, A-BAR AG ENTERPRISES: We are seeing hotter streaks during the summer, more extremes between cool and warm. And I don't know what an average year is anymore.

STEPHANIE ELAM, CNN CORRESPONDENT: Barcellos says tomato crop yields across the state have steady declined over the last decade.

BARCELLOS: A lot of that is due to the climate change.

ELAM: As for his family's operation, tomatoes may soon be out of the mix.

BARCELLOS: Right now, we don't have any acres scheduled for tomatoes for next year. Unless tomato prices in the field get to a level where we think we have a chance to make money, we're going to go do something else with those open acres.

(END VIDEO TAPE)

ELAM: And as far as these farmers are concerned, they say that Americans need to decide where we want our food to be grown, because the cost of growing these fruits, these vegetables is going up. And if we want to know where our food is coming from, then they're saying that we need to be able to vote for that with what we buy at the grocery store because they can't compete with prices of products coming out of other countries at some times.

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: Nothing scheduled for next year.

ELAM: For that one farmer. That just shows you how expensive it can be.

MARQUARDT: Very scary. Stephanie Elam, thank you so much for that great reporting, appreciate it.

ELAM: Great to see you.

MARQUARDT: And NEW DAY continues right now.

BRIANNA KEILAR, CNN ANCHOR: Russia unleashing a deadly wave of kamikaze drone attacks on Kyiv. I'm Brianna Keilar. Alex Marquardt in this morning for John Berman. The loud explosions rocking the capital.

(BEGIN VIDEO CLIP)

(GUNFIRE)

(END VIDEO CLIP)

KEILAR: So what you're seeing here in this video appears to be an Iranian Shahed 136 drone coming under fire in Kyiv. CNN has not been able to confirm the location. The drones were targeting Ukraine's energy infrastructure just before the onset of winter. Kyiv and Washington have accused Tehran of supplying these drones to Russia. Iran has rejected that allegation.

MARQUARDT: Ukrainian forces did manage to shoot down some of the drones, But the mayor of Kyiv says that the city was still hit several times today. People in a busy area filled with universities, bars, and restaurants, they had to go scrambling for cover. At least three people have now been killed and rescue operations are still under way. People are being urged to stay inside and pay attention to warning sirens.

CNN chief international correspondent Clarissa Ward joins us now live from Kyiv. Clarissa, this death toll is ticking higher and higher.

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: It is, Alex. And we were down at the scene of one residential building that was hit by one of those kamikaze drones. Three people were found dead in the rubble, an elderly woman, also a young couple, including the woman who was just six months pregnant. So truly a tragedy.

The residential building very near to several installations that pertain to sort of critical civilian infrastructure. The feeling on the ground here seems to be that that is very much the target of this new wave of attacks. But this is definitely a new and grim chapter in this war. Up until last Monday, things had been relatively quiet and peaceful in the capital. Life here was getting back to normal for the last several months. That all changed last Monday with this barrage of deadly missile attacks. And of course today now with this spate of drone, kamikaze drone attacks.

Again, we have seen these Shahed drones used in several places around the country in the last month, but this is the first time we've really seen them launching an attack on Kyiv in this way. And authorities here saying that they managed actually successfully to intercept 15 of them.

Now, I want to bring in now, if we're able to get him up on the line, the mayor of Kyiv, Vitali Klitschko. Vitali, I'm not sure if you can hear me. Hopefully you can. You and I were talking together just a few hours ago at the scene where that residential building was hit, and I wonder if you can tell our viewers a little more about what the Russians exactly were trying to target here and why.

VITALI KLITSCHKO, MAYOR OF KYIV, UKRAINE: Good morning. But I can't tell it's good morning because it's a big tragedy what happens right now in our hometown. It's more attacks, it's more infrastructure destroyed. I want to explain the reason of this attack. The Russians tried to destroy critical infrastructure of our hometown. Before the winter, they want to switch off the electricity and make attack to our power plant stations. And right now before the cold season we prepare our city to deliver warmth to houses, and that's why the reason to destroy the whole critical infrastructure.

[08:05:03]

They try to make big trouble for our hometown. They're fighting not against civilians, not against the military. They're fighting against civilian. And the whole explanation is special operation. It's explanation against the war against us, it's everything a liar. Putin need Ukraine after the last attack. I have definitely opinion that Putin need Ukraine without Ukrainians because they destroyed our operation. We have a lot of pictures from Irpin, Bucha, just six months ago. But right now the last attack last week was against our university was attacked attacked. The rockets landing near children's playground. And right now the apartment building. By the way, it's our hometown. It's our hometown, destroyed, more than --

WARD: What's the effect then, on the psyche -- what's the effect on the psyche, because things had been getting back to normal for people in Kyiv. And now we see this sort of relentless uptick in the number of attacks, and now with these drone attacks, surely that must have an effect on how people here in this city are feeling.

KLITSCHKO: They try to destabilize the situation in Kyiv and bring the panic to our citizens to make a depression. Instead that, the people are very angry. The people want to fight and defend our houses, our family, our children. We are very good motivated. But Russians and Putin do that because they helpless. Right now, they do it, everything what is actually not bring the effect in this war, because our soldier for a couple of months was very successful in east and south of Ukraine. But right now the Putin try to give them good face but for some people in Russia who are asking what's the reason, what are we doing there. And Putin tried to do something to maybe explanation where attack Ukrainian, and we're so strong. It's weakness. It's weakness from Putin. And it's genocide of Ukrainian population. Putin need Ukraine without Ukrainians. I have some information --

WARD: Thank you so much for your time, Mr. Mayor. Thank you very much for sharing your thoughts with us, Mr. Mayor.

And just one other thing I would add, Alex and Brianna, tossing back to you, is that the foreign minister, Dmytro Kuleba, has also come out actually now calling for sanctions against Iran, saying that Iran bears serious responsibility because these are Iranian-made drones. It will be interesting to see what the wider response to that will be. Alex, Brianna?

MARQUARDT: Very hard to imagine that the mood in Kyiv will not shift significantly after what has been several months of relative calm and people being able to go back to their normal lives. Clarissa Ward in Kyiv, thank you so much for your interview with mayor Vitali Klitschko. We will be coming back to you throughout the course of the day.

KEILAR: The death toll rising from the fire at the notorious Evin prison in Iran. It's known for housing the country's political prisoners. CNN is covering developments around the globe.

(BEGIN VIDEO TAPE)

NADA BASHIR, CNN PRODUCER: I'm Nada Bashir in London. And in Iran, a deadly fire, the notorious Evin prison known for the detention of political prisoners has killed at least eight people and injured dozens more according to state media. CNN can't independently identify the cause of the fire. Pro-reform news outlet IranWire reported on Saturday that sources within the prison said a revolt had taken place, with reports of teargas being deployed by prison authorities. However, government officials have asserted that the situation was quickly brought under control with a security official telling state media on Saturday that the blaze had started after a group of thugs set fire to a clothing warehouse on the complex. This comes as Iran's brutal and deadly crackdown on nationwide antiregime protests continues to intensify.

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: I'm Steven Jiang in Beijing where it's day two of the ruling Communist Party's 20th National Congress where Xi Jinping is set to secure a precedent breaking third term as the country's supreme leader. He delivered a rousing speech on Sunday, outlining his governing philosophy being the only way to restore China's global standing is to restore the party's dominance in every aspect of Chinese society.

[08:10:09]

One term he used time and again was to struggle or fight. Fighting COVID fighting corruption, and without naming the United States, fighting hegemony, clearly indicating he is unlikely to back down from any of his hardline policies and positions, including on zero COVID and his desire to reshape a U.S.-led world order.

STEFANO POZZEBON, JOURNALIST: I am Stefano Pozzebon in Bogota, Colombia. And in Brazil President Jair Bolsonaro is facing a backlash over some disparaging comments he made about a group of Venezuela minors on Friday. The president is facing former president Luiz Inacio Lula da Silva in a tough runoff for the presidency of the country at the end of the month. In an interview, he meant to be warning Brazilians about what he called the risks of turning the country into new Venezuela. The way he referred to underage girls in Brasilia was deemed inappropriate for a man of institutions.

(END VIDEO TAPE)

KEILAR: We're just 22 days until America votes in midterm elections that could not be more consequential. Early voting getting under way in Georgia where Republican Herschel Walker is challenging the Democratic incumbent Raphael Warnock in a race that could decide which party controls the Senate. We'll have more on that in a moment.

On the debate stage tonight in Georgia, incumbent Republican governor Brian Kemp squares off against his Democratic challenger Stacey Abrams. Abrams will be getting some help on the campaign trail from former president Barack Obama between now and November, we have learned. The former president will also be campaigning in Michigan and Wisconsin.

MARQUARDT: And there are two other notable debates tonight. Democrat Tim Ryan and Republican J.D. Vance have round two of their debates in Ohio's quickly tightening Senate race. And then out in Utah, independent Evan McMullin and incumbent Republican Senator Mike Lee, they battle on the debate stage in the only Senate race in the country where Democrats opted to not field a candidate.

And this morning Georgia Senate candidate Herschel Walker is facing new questions about the legitimacy of the sheriff's badge that he flashed on the debate stage on Friday night. Take a look.

(BEGIN VIDEO CLIP)

HERSCHEL WALKER, (R-GA) U.S. SENATE CANDIDATE: And you know what's so funny, I am with many police officers.

(LAUGHTER)

WALKER: And at the same time --

UNIDENTIFIED FEMALE: Mr. Walker, Mr. Walker, Mr. Walker, Mr. Walker.

WALKER: No, no, no, no. When he said a problem with the truth, when he said a problem with the truth --

UNIDENTIFIED FEMALE: Excuse, Mr. Walker, please, out of respect, I need to let you know, Mr. Walker, you are very well aware of the rules tonight.

WALKER: Yes.

UNIDENTIFIED FEMALE: And you have a prop.

WALKER: Yes.

UNIDENTIFIED FEMALE: That is not allowed, sir.

(END VIDEO CLIP)

MARQUARDT: He contested that, that was not a prop. Let's bring in CNN national politics reporter Eva McKend. Eva, what authority is Walker claiming that he has with that badge?

EVA MCKEND, CNN NATIONAL POLITICS REPORTER: So Alex, he has these badges from different local law enforcement agencies in the state, but to be clear, these badges are ceremonial in nature. People who hold them cannot pull over anyone, arrest them. But still, the Johnson County Sheriff's Office, that is the office that that particular badge is from that he flashed at the debate, they're defending him, saying that he has been an effective ambassador for law enforcement in the state and that they're proud to endorse his run for U.S. Senate. And Walker has made this, his proximity to law enforcement, so

crucial, so critical to his election argument. But to be clear, he does not have the power with his badge to arrest anybody, pull anybody over. It is really ceremonial in nature.

KEILAR: Herschel Walker moments ago responding yet again to allegations that he paid a former girlfriend to get an abortion. Can you tell us what he said, Eva?

MCKEND: So he's telling NBC basically much of the same, Brianna. He is again denying these core allegations that he paid for a former girlfriend's abortion and encouraged her to get another one. But what we're learning now is more about this $700 check that is key to her claims. Let's take a listen.

(BEGIN VIDEO CLIP)

HERSCHEL WALKER, (R-GA) U.S. SENATE CANDIDATE: This is still a lie because she's the mother of my child. So you're going to see somebody giving a check. So what I'm saying, it's a lie.

UNIDENTIFIED FEMALE: Do you know what the $700 check is for?

WALKER: I have no idea what that can be for.

UNIDENTIFIED FEMALE: Is that your signature on the check, though?

WALKER: It could be. It doesn't matter whether it's my signature or not.

Yes, that's my check.

(END VIDEO CLIP)

MCKEND: So he was a bit evasive on this point in the past, but now he is conceding that it is, in fact, his signature on the check. So he sent the $700 to this woman, but he's not confirming -- or he is denying, rather, that it was for an abortion.

Meanwhile, today in the state, it's the first day of early voting. Let's of excitement here on the ground. Senator Warnock, rather, Walker's opponent, he is going to be voting here in about an hour. Brianna, Alex?

[08:15:00]

MARQUARDT: First day of early voting and a big debate tonight. Lots going on in Georgia. Eva McKend in Atlanta, thank you so much for that report.

KEILAR: And in Arizona, Republican candidate for Governor there refusing to say definitively if she would accept the results of the election if she loses.

Here is part of Kari Lake's interview with our Danna Bash on "State of the Union." (BEGIN VIDEO CLIP)

DANA BASH, CNN ANCHOR AND POLITICAL CORRESPONDENT: My question is, will you accept the results of your election in November?

KARI LAKE (R), ARIZONA GUBERNATORIAL CANDIDATE: I'm going to win the election and I will accept that result.

BASH: If you lose when you accept that?

LAKE: I'm going to win the election and I will accept that result.

(END VIDEO CLIP)

KEILAR: CNN chief political correspondent and co-anchor of "State of the Union," Dana Bash with us now. That was an interesting answer, because it seems like there's only one condition that she is spelling out under which she'll accept the results.

BASH: That's exactly right. And at first, it starts with her own election, and then if she does win, and she becomes Governor, then it moves on to the 2024 presidential election, which we know was consequential -- pivotal, in 2020. The fact that Doug Ducey, the sitting Republican Governor, and the people who work in the current Secretary of State and others, said that they were going to follow the law, count the votes, and then put up the person who won. Well, that was Joe Biden.

It is not clear if that would be the case, if Kari Lake were to become Governor. And so, you know, we talked about 2020, about the fact that election denial is a pretty key part of her campaign out on the campaign trail, it absolutely was in the Republican primary. It's a large part of how she not only got Trump's endorsement, but got the Republican nomination, and then she continues to do it.

So that was why we discussed it in addition to really important issues, like inflation and border issues before them, but when you're talking about a Republican or any candidate who is just simply denying reality in the past, and not accepting potential reality in the future, that's critical, because that is at the core, as we all know, of our democracy.

MARQUARDT Really important issues, but it sounds like they won't be debating these issues. Right after that conversation, you interviewed Katie Hobbs and you asked her why she is refusing to debate. What did she say?

BASH: Well, let's listen, and we will talk about it on the other side.

(BEGIN VIDEO CLIP)

KATIE HOBBS (D), ARIZONA GUBERNATORIAL CANDIDATE: Look, Kari Lake has made it clear time and time again that she is not interested in having substantive, in-depth conversations about the issues that matter to Arizonans. BASH: If you think she's as dangerous as you're saying to democracy,

is it your responsibility as a candidate who wants to run Arizona to show and explain who their alternative is?

HOBBS: That is exactly what I'm doing right now and there is a lot more ability to have a conversation with you without her interruptions and shouting to do that.

(END VIDEO CLIP)

BASH: Kari Lake has said, "I will debate you anywhere, anytime. I will let you write your questions for me. I will do it anywhere." It's almost like a like a Dr. Seuss book that she has repeated over and over again.

But this has become an issue for Kattie Hobbs, because it is such a high stakes race. It is such -- not just high profile, but there are so many ramifications for who becomes the Governor of Arizona, again, not just for the people of Arizona, which is big in and of itself, but for the country looking ahead to 2024.

Katie Hobbs is the sitting Secretary of State. She was one of those trying to, along with the Republican Governor, the Republican Speaker of the House in Arizona, trying to sort of defend the parameters of vote counting and sort of how it should go. And now, she is up against somebody who doesn't believe that the election was free and fair, falsely, in 2020, and she is not going to get on the debate stage.

There was a debate scheduled and Katie Hobbs pulled out and so, it has become an issue in a way that maybe shouldn't have and it should be focused on what we were talking about on things like inflation and abortion, but the fact that she won't debate has given Kari Lake a very wide opening.

KEILAR: Kari Lake is very polished, right? She's good on TV.

BASH: She sat in these chairs for 27 years. She is very good on TV. She is a well-known figure because she is a longtime local anchor.

KEILAR: Yes, and maybe that is something that would be tough for Katie Hobbs or she certainly feels like there is some risk and maybe less reward and doing that.

Dana Bash, great to have you. Thank you so much for sharing your interviews with us.

BASH: Nice to see you, both.

MARQUARDT Appreciate it.

BASH: Thank you.

KEILAR: A new prediction about the economy from economists.

Christine Romans here with what the data tells us. MARQUARDT And why former President Donald Trump is saying that

American Jews have to "get their act together." His latest Truth Social post that is drawing so much criticism this morning.

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[08:23:59]

(BEGIN VIDEO CLIP)

JAMIE DIMON, CEO, JPMORGAN CHASE: Europe is already in recession, they are likely to put US in some kind of recession six to nine months from now.

PIERRE-OLIVIER GOURINCHAS, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND: The worst is yet to come. And for many people, 2023 will feel like a recession.

LARRY SUMMERS, FORMER TREASURY SECRETARY: I think it's more likely than not that sometime in the next year or 18 months, we will have a recession.

JOE BIDEN, PRESIDENT OF THE UNITED STATES: There is no -- there is no guarantee that there is going to -- I don't think there will be a recession. If it is, it will be a very slight recession. That is we'll move down slightly.

(END VIDEO CLIP)

MARQUARDT So, is the American economy headed for a recession. Economists and market forecasters have so far been divided, but they may be circling around a consensus. And it's not pretty according to a new survey of economists by "The Wall Street Journal." The probability of a recession in the next 12 months stands at 63 percent. That is up from 49 percent back in July.

Joining us now Christine Romans, CNN Chief Business correspondent. Christine, what are they saying?

[08:25:00]

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: You know, Alex, this is the first time this survey has been above 50 percent since back in July 2020, that was right after a very deep, but short recession.

Look, the world is grappling with three big trends: High inflation, rising interest rates to fight that inflation, and a global energy crunch. In the US, that has these economists raising the likelihood of a recession here in the next 12 months. They've been slowly raising their forecasts over the past months -- Brianna.

KEILAR: And I know everyone's ears will perk up at this, economists also expecting job cuts.

ROMANS: They are. This year, the US economy has been averaging 430,000 jobs added each month. That's big. By the second quarter next year, these economist see on average 34,000 jobs lost a month, and a little worse than that each month in the third quarter. That is quite a reversal, you guys, from what is a very strong job market right now, 3.8 million jobs added so far this year.

MARQUARDT And Christine, what role is the Fed playing in all of this?

ROMANS: Well, it is the Fed's job to fight inflation and it's been cranking up interest rates to try to cool demand and cool inflation.

The Fed, at first, was criticized for being too late and recognizing that inflation was not temporary, but something more dangerous. But now, economists are criticizing the Fed for being too aggressive.

From "The Journal" here, "Some 58.9 percent of economist said they think the Fed will raise rates too much and cause unnecessary weakness." The worry is that a soft landing is becoming more and more elusive. What is a soft landing? You've heard me say this, you hear economists talk about this, this soft landing, it's when the Fed tightens enough to lower inflation, but not spark a recession.

It's interesting, Brianna, because the Fed has to solve the problem, but the Fed can make the problem worse at the same time.

KEILAR: Yes, definitely. Okay, silver linings now with Christine Romans. Give us some good news.

ROMANS: So, if there is a recession, these economists think it's going to be very short and shallow. And for the whole year, next year, they still see positive economic growth in the US. The US is a standout with the rest of the world. And most economists surveyed expect the Fed will eventually have to reverse course and begin cutting interest rates in 2024.

And you guys, the other silver lining is, I want to be very clear here. These are predictions, nobody knows exactly what's going to happen. You have to have a lot of humility to be an economist or a journalist covering these economists in these times because as we know, the last two and a half years have been absolutely unprecedented. No one really knows with certainty how this is going to turn out.

MARQUARDT Yes, potentially troubled waters ahead. Hope your silver linings' prediction is correct.

Thanks, Christine, really appreciate it.

ROMANS: You're welcome.

MARQUARDT Now, high-profile trials with jurors behaving badly. What did some of them do to get removed from their cases?

KEILAR: And new CNN report on what law enforcement officials knew about violent threats aimed at lawmakers prior to the attack on the US Capitol.

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