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President Biden Lays Out Middle East Framework At GCC+3; Biden Hopeful His Visit Will Lead To Lower Energy Costs; Father Pleads For Help Finding Missing Ole Miss Student; Autopsy: Jayland Walker Had 46 Entrance Wounds Or Graze Injuries. Aired 8-9a ET

Aired July 16, 2022 - 08:00   ET

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

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[08:00:34]

BORIS SANCHEZ, CNN ANCHOR: Good morning, Buenos dias, and welcome to your "New Day." It's Saturday, July 16th. I'm Boris Sanchez.

KRISTIN FISHER, CNN ANCHOR: And I'm Kristin Fisher, thank you so much for starting your morning with us.

SANCHEZ: Great to be with you, Kristen.

FISHER: Great to be with you.

SANCHEZ: We start this morning with President Biden delivering a message to Middle East leaders. The United States is not going anywhere, it is committed to that region.

FISHER: Yes, the President spoke just moments ago ahead of the Gulf Cooperation Council Plus Three Summit that's an alliance of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman plus, Egypt, Iraq and Jordan. That's the plus three there.

SANCHEZ: The plus three, right.

FISHER: Our colleague Wolf Blitzer is traveling with the president, and he joins us from Saudi Arabia.

SANCHEZ: And Wolf, you're the top of the agenda for Biden, the issue of energy production, also security in the region, the war in Yemen, countering Iran and over all of this also the murder of a Washington Post journalist

WOLF BLITZER, CNN ANCHOR: Jamal Khashoggi clearly very much high on the agenda for the President of the United States. He's trying to turn the page on U.S. relations with Saudi Arabia right now, which are so important. He wants to strengthen ties with Saudi Arabia and other countries in the Middle East. Listen to how he summed up the U.S. role in the region just a little while ago going forward.

Listen to this.

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JOE BIDEN, PRESIDENT OF UNITED STATES: Let me say clearly, that the United States is going to remain an active engaged partner in the Middle East. As the world grows more competitive, and the challenges we face more complex, is only becoming clear to me that how closely interwoven America's interests are with the successes of the Middle East. We will not walk away and leave a vacuum to be filled by China, Russia or Iran.

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BLITZER: He also said we will not walk away, President Biden's interaction with the Saudi Crown Prince Mohammed bin Salman is clearly looming large over this really important summit. New video shows the President walking with the Saudi leader standing beside him during an initial photo op just a little while ago. The President says he confronted the Crown Prince, accusing him of being behind the killing of the Washington Post columnist Jamal Khashoggi, he says the Saudi leader known as MBS denied involvement.

President Biden was also fiercely criticized for his so-called fist bump during his first visit with the Crown Prince yesterday. The Saudi government wasted absolutely no time promoting the image on Saudi state TV and on social media. This trip comes as the President is dealing with fallout from very high gas prices and soaring inflation back home. The Biden administration says steps Saudi Arabia is now taking will eventually within weeks he says drive down oil prices and provide some relief.

Our chief White House correspondent Kaitlan Collins is with me here in Saudi Arabia, we're in Jeddah, we're following the President of United States. He's going meeting all morning with these leaders of the GCC, the Gulf Cooperation Council, plus these three other countries, Egypt, Jordan, and Iraq. All these leaders are here. And the President is making clear to them He will not leave a vacuum in the Middle East region that could be filled he fears by Iran, Russia or China.

KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: And they started to fear it was already being filled. And that is really why you saw U.S. officials drive the President message on this trip of why they were deciding to come because they obviously were pressed of the political cost of coming and meeting with the Saudi Crown Prince that President Biden had so widely criticized on the campaign trail and vowed to make a pariah. And then of course, going from that campaign promise in 2019, to seeing the two of them stand next to each other today for this family photo in the joint session where President Biden made his remarks and really laid out his vision for the Middle East earlier. It is because of the concern that China and Russia were making inroads and they were worried about that happening and they wanted to step in and try to fill that vacuum.

Whether these other countries who were here at the table meeting with President Biden today, accept that and do believe that the United States is going to remain involved in the region remains to be seen, because I do think they noticed that he had started to shift his attention to China. There are some things that are making it impossible to (INAUDIBLE), Iran is a huge thing that they are all discussing today, all of the leaders have some kind of vested interest in this.

[08:05:08]

One thing that they're split on, though, is how to constrain Iran. And we saw that on display in Israel as the president, the prime minister at various different, sharply different views of what to do. And so those are going to be issues that will remain going forward. But this reset in relations with Saudi Arabia, what does that look like going forward? And does the President embrace the Saudi Crown Prince now as a full partner, something he had declined to do previously.

BLITZER: And this issue of Iran is hovering over all of these talks. And in Israel, he made it clear, he still believes diplomacy is the best way to prevent Iran from developing a nuclear military capability. The Israelis aren't convinced they think that only a military threat to Iran will convince the Iranians maybe to slow down their nuclear program.

Kaitlan, stay with us. I also want to bring into our discussion, Susan Glasser, CNN, global affairs analyst and staff writer for The New Yorker Magazine. Aalso with us, Nic Robertson, he's our CNN international diplomatic editor.

Susan, the President has addressed last hour, we saw it live here on CNN, he spoke about what he called rebuilding trust. And that he said the U.S. is going to remain an active and engaged partner in the Middle East. Talk a little bit about that.

SUSAN GLASSER, CNN GLOBAL AFFAIRS ANALYST: Yes, Wolf, I think you're right to spotlight that it's about China. It's about Russia. It's about a strategic decision by this White House, that you can't pivot away from the Middle East, because it's actually part of a globalized foreign policy right now. And I think there, you know, used to be the sort of notion that it was a zero-sum game in international affairs, if you will, that you could, you know, look to China and move away from the entanglements in the Middle East.

But I think this administration sees it much more as he's in the Middle East because of China and the long-term challenges to American leadership around the world. The question, of course, is, what is he getting out of this? What does it mean to project American leadership at this moment in time? We're talking about very, very incremental gains so far, and a lot of political pain that Biden is absorbing in order to make that statement.

BLITZER: As a result of the improved relationship, you're saying, with Mohammed bin Salman, the Crown Prince, is that what you're suggesting Susan?

GLASSER: Well, that's certainly a part of it. You know, the fist bump, was it really worth it? And Biden has been so palpably uncomfortable on this trip, right? You know, Donald Trump came to Saudi Arabia, they gave him the glowing orb, they had, you know, huge photographs of him, five storeys high on the side of the hotel that he was staying in. He loved it. He was unapologetic, he made it his first visit of his tenure, breaking with tradition. Joe Biden is visibly uncomfortable. This is a man who, after all promised to have values based foreign policy. Well, what is the value that America shares with a repressive country like Saudi Arabia, right?

And so, what has he gotten in return? You've been very uncomfortable, even at the notion of linking, say, Saudi progress and opening up the world energy supply with this visit. And yet, maybe that would have been more politically productive for him to say to Americans, hey, listen, I'm here in order to bring your gas prices down at the pump. And he has refused to -- he hasn't wanted to do that.

BLITZER: Interesting. You know, Nic, the trip was clearly, and you and I've been coming to Saudi Arabia to this region for many, many years that the trip was clearly resetting U.S. relations with Saudi Arabia, Saudi Arabia, militarily, strategically, economically, has been extremely close to the U.S. what for 80 years or so. They want to close the diplomatic gap. The President says Russia, Iran and China are looking to fill that gap if it opens. What do you think, did he accomplish that goal? What is this relationship look like going forward?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: I think it was put back on a better footing, I think there's a positive pathway forward for both the U.S. and the Saudi to develop relationships here. I think that's certainly the aspiration of the Saudis having got what they wanted out of it. And having spoken in the last few minutes to Saudi journalist who is very well connected to the Saudi government. He seems to think that the government here is going to be happy with what they heard in that 10-minute speech from President Biden. For us, it might have been a little bit late on detail. But it was, you know, the respect for the international rules-based order, and wanting to work with countries that support and have and respect human rights, that's a message to Saudi but others in the region as well.

And I think one key clear message, the other points that the President made, was that he would not allow a country in the region. And again, he didn't say he didn't name it, but everyone around the table knew that it was around that could close down that vital waterway from the Persian Gulf out to the rest of the world, the Strait of Hormuz Iran has done that before, and President Biden clearly indicating that that is, it is Iran in the crosshairs here.

[08:10:11]

I think, you know, for the President's takeaway from this, if he gets the oil that he thinks he'll get. And if the Saudi response is as positive as the early indications seem to be, then this is a trajectory to do more in the region, which will be vital for not only U.S. national security interests, but for those of partners and allies in Europe. And of course, gas prices being a key part of that picture.

BLITZER: Certainly, it's certainly true. Kaitlan has a question for Susan.

COLLINS: Well, Susan, I kind of wonder, based on what Nic was just saying there, how much did the Saudis get out of this? How much did NBS get out of this meeting?

GLASSER: Well, you know, look, they wanted the visual, they wanted to meet (INAUDIBLE). You know, they were quick to read it around in some ways. Biden's uncomfortableness with a handshake produced an even more favorable image. You know, I don't see, to me why a fist bump is a downgrading from a handshake, if anything, it appears to be a more intimate and friendly gesture, certainly as Joe Biden carried out, so they got that, first of all, they're leader, visually is not a pariah to the United States. In fact, he is a fist bumping, buddy. So he got that, number one.

Number two, I think bringing the U.S. back into the idea of this long- term partnership that the United States has had with Saudi Arabia is very significant. You hear a lot in the in the Saudi rhetoric around this, you know, the decades of engagement, the long term partnership, and it's a validation, in many ways for the idea that the United States is once again making almost Cold War, ask choices, saying that the war between Russia and Ukraine is prioritized, and its consequences are so severe that we're going to have to overlook and we're not going to have a values based foreign policy after all.

And then, of course, the messaging on Iran, which Wolf and Nic have been emphasizing. That's extremely significant, it seems to me, because the message they're hearing both from Israel, by the way, and Saudi Arabia is, you know, give up your main hopes of resurrecting the Iran nuclear deal. You know, those aren't people that you can work with. And, you know, that's what Biden is hearing on this trip.

BLITZER: Yes, that's what the Israelis in some of these Gulf states have in common. They're not thrilled about reviving that diplomacy, which the President keeps talking about, to try to prevent Iran from getting a nuclear weapon. They want to see action, strong words and the threat of military action, which is the only thing they think can convince the Iranians to stop their nuclear program.

Nic, the President is clearly trying to reset this important relationship with Saudi Arabia reset the relationship with Mohammed bin Salman, the Crown Prince. But will human rights be part of the package when all is said and done?

ROBERTSON: It has to be it, has to be for the President to maintain his credibility his told the Crown Prince Mohammed bin Salman behind closed doors in front of his government, that that's a key issue has said it in front of the GCC+3 has made it clear this is a central plank of countries that he wants to deal with. If you will his put NBS on notice, you know, don't overstep the line again, don't know what that line is. We do know he got asked that very searching question the press conference last night, President Biden asked, you know, if there's another killing by MBS, is that blood going to be on your hands? And he demure word on that on that question that he cannot give guarantees, but he's laying out clear warning here for Saudi Arabia that these are the terms of the engagement with the United States.

Look, this is the big test of Mohammed bin Salman, he's coming to power. He's got back some of the standing where he wanted to be, he'll always be tarnished by the killing of Jamal Khashoggi, but it's up to him how he acts now, how he plays out his vision 2030 to deliver a more economically stable country, a country that diversifies from petroleum products that gets into green energies, all of these things he says he wants to do, as well as keep his population on site. That's going to be the test that Mohammed bin Salman and President Biden's laid down some guardrails on that he's in office now and his telling him what it's going to take to get the kind of partnership he wants.

But at the same time, two-edged sword, you know, Biden can lose a Saudi into the into the sphere and orbit and influence of China. That would be a strategic loss for the United States right now.

BLITZER: Would be a huge loss indeed. A very quick question, Kaitlan, before I let you go, we only have a few seconds. But you've been speaking to the White House officials, U.S. officials. What are they saying about the fist bump? It's causing a lot of interest out there.

[08:15:03]

COLLINS: They've really downplayed it. And President Biden himself downplayed it. He was asked about the criticism that he's gotten for it in, that's not just from anyone Wolf, it is, or the publisher of The Washington Post said that he was, he thought that the fist bump to Susan's point was more intimate almost than a handshake would have been. But the President himself laughed it off when he was asked about the criticism last night and the White House says, that's not really our focus. We're focused on what's happening behind closed doors and in these meetings and these accomplishments and the progress that we're making, but it is an indelible image that I think will stick with people of what that meeting looks like. And when you hear what he said on the campaign trail, and you see that image, I think it's hard for people to square those two things.

BLITZER: Yes, good point. Kaitlan, thank you very much. Nic Robertson, Susan Glasser, thanks to both of you, as well.

We're staying on top of all the news here in Jeddah, Saudi Arabia. In the meantime, let's go back to Boris and Kristin.

FISHER: Thank you Wolf.

And still ahead this hour, the Secret Service under scrutiny. The January 6 committee issuing a new subpoena to the agency over claims they did raise text messages from that day of the riot. One committee members telling CNN that their explanation just doesn't make sense.

SANCHEZ: And the University of Mississippi student has gone missing. Now his family is pleading for your help to find him. What we know about the last time he was seen.

FISHER: And the U.S. is not the only place dealing with sweltering temperatures, an unrelenting and very dangerous heat wave is gripping parts of Europe. We will have much more on that coming up.

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[08:20:37] SANCHEZ: So, the January 6 committee has issued a subpoena to the Secret Service for text messages that were sent on January 5th and 6th of 2021.

FISHER: Yes, this comes after Homeland Security -- Homeland Security's inspector general accused the Secret Service of erasing those texts after his office requested them.

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REP. ZOE LOFGREN (D-CA): I will say that the explanation that you have to factory set, and eliminate your data without backing up your data. Just seems, I'm skeptical. I mean, I wouldn't do that.

The argument about when the request was made as largely irrelevant. The Secret Service was aware this was one of the signature events of our country, and that there would be a need to preserve all of the evidence because of that. And also, there's an obligation for federal agencies to retain records. So this is troubling, but they've said they've got the tax and the committee intends to get them all ASAP.

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FISHER: The inspector general briefed the committee yesterday concerning his investigation of the agency's actions during the attack. And according to a source, the Inspector General told the panel at the Secret Service has not fully cooperated with his probe. He also says that the agency did not conduct its own review of its actions on that day. Instead, the agency was relying on the investigation being conducted by the Inspector General's office.

SANCHEZ: We have a former secret service agent with us this morning. Christopher McClennic joins us now to share his perspective.

Sir, we're grateful to have you this morning.

The Secret Service says that messages got deleted as part of a device replacement program. They were not backed up, is that standard operating procedure or what do you think of the claims?

CHRISTOPHER MCCLENNIC, FMR U.S. SECRET SERVICE AGENT: Well, well, first things first. Good morning, Boris. And thank you for having me. I don't want to necessarily speak on what the policies and procedures are of the Secret Service in reference to the deletion of those text messages, because it did goes towards their procedures as far as security are concerned.

However, I can testify that at that time, there was in fact an equipment rollout. I was an agent at that time, and there was new equipment that was being pushed out to the agents of various types, all different types of electronic equipment. So that part of the story does coincide with what the Secret Service is saying. So, that's at least a good thing for the service and the fact that that part of it is undoubtedly true.

SANCHEZ: Simultaneously, the Inspector General told the committee that the Secret Service has not been fully cooperative with this probe, the agency is denying that. How does the service typically approach these kinds of reviews?

MCCLENNIC: By being forthcoming. As an investigator, I will say that when you're investigating these types of situations, you'd almost never get the information as quickly and as holy as you would like. I don't think that there's been any specific information given where they were holding up information or that they were refusing the inspector general, an opportunity to speak to agents.

So, I want to believe that the Secret Service is in fact doing everything that they can to provide that information. And I think, again, it's in the preliminary stages. I think that the giving of information will get better as time proceeds.

SANCHEZ: How likely is it you think that actual secret service agents might be testifying before the committee?

MCCLENNIC: At this point, 100 percent. It's really not within the secret services norm to get involved in these types of situations. But that said, the members of the service have come out and stated that they will have agents testify. And with that, I 100 percent believe that that is going to take place.

SANCHEZ: So, I wanted to ask you about this, CNN is reporting this week that there was a D.C. police officer that has corroborated to the committee some of Cassidy Hutchinson story about the heated exchange between Trump with his detail on January 6. I'm wondering what you make of that, how significant that is?

[08:25:17]

MCCLENNIC: I think very significant. I spoke about this before with Ms. Hutchinson's testimony, and that it was, for lack of a better expression, riveted. She makes a very, very good witness. Now that said she was not in the vehicle at that time. And she was testifying to what she had heard. I don't know exactly what this D.C. officer is stating. Well, let's back up even further than that. I know members of the D.C. Police Department. I have the greatest respect for the members of the D.C. Police Department for the D.C. department as a whole. I believe that what is being said by them, they believe it to be accurate. That said, as an agent who's investigated cases and as a prosecutor whose prosecuted cases, you always want to go with your best witness.

And this case, unfortunately, the best witnesses were those who were in that vehicle at that time. And as I said before, it's a bad day when the service has to testify in reference to these, these rumors. But it seems like there's no other way to get to the bottom of this. And I think the best witness will be those who were actually in the vehicle unfortunately.

SANCHEZ: We have to leave the conversation there. Christopher McClennic, appreciate your perspective, sir. Thank you.

MCCLENNIC: Thank you, Boris. Have a good morning. SANCHEZ: Of course.

FISHER: Desperate pleas for help this morning after an Ole Miss students suddenly disappears. Jimmy Lee hasn't been seen for about a week and details on the search and the ongoing investigation straight ahead.

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FISHER: The father of a missing student from the University of Mississippi. Jimmy "Jay" Lee is pleading for the public's help in finding his 20-year-old son who disappeared more than a week ago.

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JIMMIE J. LEE SR., FATHER OF JIMMIE "JAY" LEE: If anyone knows anything, or sees anything, say something, call, contact the law enforcement. Just tell them what you know. This is my plea that you help find my child.

(END VIDEO CLIP)

SANCHEZ: According to police, Jimmy "Jay" Lee was last seen leaving an apartment complex near the university on July 8th. Earlier this week, authorities were able to find his car, but there's still no sign of him.

CNN's Nadia Romero has been following this story. She joins us now live.

Nadia, bring us up to speed, what's the latest on this investigation?

NADIA ROMERO, CNN NATIONAL CORRESPONDENT: Yes, Boris and Kristin, we heard from Ole Miss Police and Oxford Police that are they're working in conjunction with one another to try to find Jimmy "Jay" Lee. So they recovered his car on Monday at a different complex somewhere else where he doesn't live about two and a half miles or so from his home. So they were able to take that car into the Mississippi State Crime Lab and start processing it, looking for fingertips, DNA evidence, potentially receipts or something that can help them put a time line together. And this has been an investigation that has stretched all across the campus community. So, police tell us that they've executed about a dozen search warrants. And they've also interviewed people on and off campus.

And what we've been hearing from students and from neighbors of Jimmy Lee, I want you to take a look at this statement that the University of Mississippi released to its students saying, we understand that this may be a very distressing time for members of our campus community. And you may feel a need to speak with someone. Students who need assistance can access the support services from the university. And then in that alert the university listed a handful of ways that students could find support and talk to someone if they need to. His friends say that he was a vibrant person, and you can tell, when you look at his pictures that he lived life out loud. And I want you to hear from his neighbor who says that she's concerned and everyone who knew him is concerned about his disappearance. Take a listen.

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LAKIOWA MILA, JIMMY "JAY" LEE'S NEIGHBOR: They should be alert now if it is a kidnapping because these like him. Like this is a usual to happen on campus like I've never heard anything like this happening around here.

(END VIDEO CLIP)

ROMERO: And so let's get another look at Jimmy "Jay" Lee so that you can see this person and if you maybe have seen him all natural or maybe you've seen him with hair and makeup as in dresses as sometimes he wears, this is Jimmy "Jay" Lee, who is 20 years old, five foot seven, 120 pounds, black and blonde hair with brown eyes He was last seen on Friday, last Friday, July 8th, leaving his apartment complex on campus wearing a silver robe or housecoat, a gold cap and gray slippers.

So if you think you saw someone who matches that description, police are asking you to contact them. Boris, Kristin there is a $1,000 war from Crimestoppers for any information that could lead police to finding him.

FISHER: Yes, and let's hope they find him. Nadia Romero, thank you so much.

New this morning, CNN has learned that a United Nations group is investigating that Ohio plate police shooting of Jayland Walker, you remember of course Walker's that 25-year-old black man who was unarmed when he was shot while running from police after an alleged traffic violation.

SANCHEZ: And so on Friday, an autopsy report released by the Summit County Medical Examiner's Office revealed that Walker had 46 gunshot entrance wounds or graze injuries. He apparently died because of blood loss from his internal injuries.

CNN's Polo Sandoval takes us through this story.

POLO SANDOVAL, CNN CORRESPONDENT (on-camera): Good morning to you. This information that was released by the Summit County Medical Examiner's Office on Friday basically finalizes some of those early findings that I had an opportunity to review in a preliminary autopsy report while in Akron, Ohio last week. They offer specifics though, the ME now reporting that Jayland Walker suffered a total of 46 either gunshot entrance or bullet graze wounds. The ME though not ruling out the possibility that a single bullet could have caused several of those wounds. Among those results that were released, though also the toxicology report coming back negative for both drugs and alcohol and also showed evidence that Akron police officers did attempt first aid on June 27th, when they, when eight of their officers opened fire shooting and killing Walker.

[08:35:43]

There was also an exam that perhaps could have further supported this claim from Akron police that they heard a single gunshot coming from inside Walker's vehicle during the vehicle pursuit portion of the incident that night. The medical examiner saying that a gunshot residue test was not conducted on Walker's body saying that though the technology is sound, that it can lead to inconclusive results mainly false positives or false negatives since that residue can easily sweat off or be rubbed away. So this is the medical examiner on Friday explaining why that test was not done on Walker's body.

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LISA KOHLER, EXAMINER, SUMMIT CO. MEDICAL: The FBI lab discontinued gunshot residue testing in 2006. Based upon these issues related to the interpretation and testing, and the ease with which these particles can be dislodged from the skin, the medical examiner's office discontinued collecting these samples in 2016 and no longer purchases the collection kits to be used by our staff. Because of this, Mr. Walker's hands were not swapped or tested for gunshot residue.

(END VIDEO CLIP)

SANDOVAL: A representative for the Walker family tells me that they have retained the services of an independent forensic expert that not only has performed a physical examination of Walker's body earlier this week but is currently looking over this final autopsy report as well. The Walker family legal team releasing a statement on Friday after those final results were released writing, today's Summit County Medical Examiner's report on Jayland Walker's death confirms the violent and unnecessary use of force by the Akron Police Department on an unarmed young man who has the family expected was not under the influence of drugs or alcohol. The legal team goes on to write, the family is devastated by the findings of the report and still await a public apology from the police department.

We should mention that Ohio's Bureau of Criminal Investigation is handling this investigation. They will turn over their findings eventually to the Attorney General, who then hopes to present them to a grand jury in the state of Ohio to see if any criminal charges would be filed.

Kristin, Boris, back to you.

SANCHEZ: Polo Sandoval, thank you so much.

Time is up, that's what top administration officials are telling Congress they say lawmakers need to take action on a semiconductor chip shortage right now, or the United States could face serious long- term consequences. We'll talk to an expert about it after a quick break.

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SANCHEZ: Time is up. That's the message from U.S. Commerce Secretary Gina Raimondo as Congress remains locked in a debate over funding for producing semiconductor chips here in the United States. As lawmakers get closer to an August recess, both sides are playing the blame game, while a potential long-term disadvantage with China looms over the country's economic and national security.

Let's break down the implications now with Mark Zandi, he's the chief economist at Moody's Analytics. Mark, good morning, appreciate having you on.

Help us understand first how we got here, how there is a chip shortage, and why relying on chips coming from overseas impacts Americans?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, we used to produce a lot of chips here, if you go back 30 years ago, well over one-third of the chips produced in the world were producing the United States. But over time, manufacturers move those operations overseas because it was cheaper. And now we only produce 10, maybe 15 percent of global chips, which is really become a problem evident in the pandemic, if you just go back a year ago, when the Delta wave of the virus hit, it knocked out a lot of chip plants in Asia. And when those chip plants shut down, it shut down a lot of other activity, like you could see the vehicle industry, they vehicle companies couldn't get chips, they could produce cars, we saw a collapse in inventory and prices for vehicles have gone sky high. And that's a (INAUDIBLE) a part of why inflation is as high as it is today.

And then of course, the tensions with China have intensified in recent years, which has become a really big deal because the Chinese produce a lot of chips. And Taiwan also is a massive producer of chips and obviously a lot of risks there given the relationship with China and Taiwan. So, a lot of risk here.

We need to get a lot more chip production back in the United States. And that's the idea behind this legislation. So I agree with the Commerce Secretary, we do need to get this passed.

SANCHEZ: So what are the stakes say if Congress goes into the August recess without passing this bill?

ZANDI: Well, that's a big mistake. You know, you got a lot of -- you know, the good news is you got a lot of chip manufacturers from Intel, that's the biggest U.S. chip manufacturer to Taiwan semiconductor, which is the largest chip producer in the world, saying that they'll build factories here, chip factories here if in fact that piece of legislation is passed. So if it's not passed, that puts in jeopardy those plans and the longer it takes Congress to pass this law, the longer it takes us to address this issue.

[08:45:06]

And by the way long, there's a long lag between when you start a chip plant, and when you finish a chip plant, its years. So we need to get going here. So big stakes here, it's really important that lawmakers get it together and sign on the dotted line.

SANCHEZ: And so, you mentioned that this has the chip shortage had an impact on inflation, long term is getting an increase in domestic chip supply and domestic chip production, would that have a positive effect on inflation?

ZANDI: Yes, absolutely. I mean, we wouldn't be in this situation, if when in the future, there's other disruptions to the supply chains. You know, I may not be a pandemic, but it could be lots of different things. So, what we learned in the pandemic was the supply chains are very long. They're not very resilient to stresses. And we need to, we need to bring them in, particularly for things like chips, which are critical for, you know, everything that we consume, from smartphones, to refrigerators, to medical devices. And for national security, I mean, jet fighters, those Javelin missiles that are being used in Ukraine, they're loaded with chips.

So, this is a national security issue that's become very clear, during the pandemic, that we got to bring some production here back at home, because this is a an economic and a national security issue.

SANCHEZ: And Mark quickly before we let you go, a lot of pressure on Congress before the recess, because they're not only looking at this, but also the reconciliation bill that Senator Joe Manchin of West Virginia, sort of dealt another blow to, at least in the sense that the Biden administration had very broad aspirations for that bill. Do you think something winds up getting passed? How do you see that unfolding?

ZANDI: Yes, something really slimmed down. I mean, one thing that has to get done is funding for the subsidies for health insurance through the Affordable Care Act. If they can't come up with that, then 30 million Americans are going to see their health insurance premiums go up, or they're going to lose the insurance altogether, because they just simply can't afford it. And that doesn't make any sense whatsoever, you know, particularly the context of this very high inflation that we're suffering through particularly lower income households that rely on those health insurance subsidies.

So I think something will get through, but obviously, you know, a very slimmed down compared to what had been discussed up to this point in time, which is a shame because I think a lot of things that were being discussed in the previous forms of this legislation would have been very helpful for climate change and other economic issues that we face.

SANCHEZ: Got to leave the conversation there. Mark Zandi, always appreciate your expertise. Thanks.

ZANDI: Sure thing.

SANCHEZ: Of course.

FISHER: Next up, extreme heat blanketing Europe, the devastating temperatures sparking wildfires, and leading to dozens of deaths. We have much more on that. Plus, your weekend forecast here in the United States. Next.

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[08:52:16]

FISHER: One of the most intense heat waves on record is unfolding across Western Europe with deadly consequences in Spain. Officials believe at least 84 people have died in Spain since this dangerous weather began. Temperatures in the southern and western regions of the country have soared to nearly 113 degrees this week, nearing record levels and the extreme heat sparking multiple wildfires across that country. This is Spain's second heat wave in less than a month and temperatures are expected to rise throughout the day.

SANCHEZ: Let's bring in CNN meteorologist Allison Chinchar, she's live in the CNN Weather Center for us. And Allison it looks like Spain is going to get a break after this weekend.

ALLISON CHINCHAR, CNN METEOROLOGIST: Yes, they are but it may only last a day. And that's going to be the big concern is that they're right back up there with those increasing temperatures. Takes Sevilla for example, they will drop back into only the 90s on Monday but back into triple digits once again on Tuesday, Madrid dropping back into the 90s Tuesday before they return to the triple digits or 40 degrees Celsius once they get later into the week.

Now for cities like Paris and London, it's going to not only get warmer this weekend, but continue to warm as we go into next week. The especial concern here for the areas of the UK because they could end up breaking their all time temperature record, which is 101 degrees, which was set back in July of 2019. London's forecast for Monday is 101 degrees, so they are going to get awfully close to that record. The concern here is that less than 5 percent of the population of England actually has air conditioning in their homes.

Back home closer into the U.S. we also have some heat alerts. Now the orange color you see here, that's heat advisories in the central U.S. and then out towards the west. We also have excessive heat watches and warnings as temperatures are expected to remain well above where they normally would be this time of year. Dallas, Oklahoma City and San Antonio all expected to remain in the triple digits for at least the next five days. But here's the thing, the eastern half of the country has had temperatures pretty close to normal the last few days. That all goes away once that heat begins to spread east in the coming days.

So take for example, Chicago near 80 on Sunday back to the 90s by the time we get to Tuesday. St. Louis, Indianapolis also making it back into the 90s once we get to Tuesday of the upcoming week. Really the only relief in sight guys is in the form of some showers and thunderstorms likely to hit the Gulf Coast and areas of the central U.S. as well.

SANCHEZ: We know you'll be tracking them for us. Allison Chinchar, thank you so much. Before we let you go this hour, we have a quick programming note for you, CNN's "UNITED SHADES OF AMERICA" airs tomorrow with a special episode. Here's a preview.

(BEGIN VIDEO CLIP)

W. KAMAU BELL, HOST, UNITED SHADES OF AMERICA (voice-over): Before you start making fun of Appalachians eaten squirrel, this is not an everyday meal anymore. Squirrel is how they teach newbies to hunt, they're doing this for me, my welcome to the family. [08:55:09]

(on-camera): Wow.

UNIDENTIFIED MALE: All right, there we go. Nice.

BELL (on-camera): First bite the squirrel.

UNIDENTIFIED MALE: Give it a shot.

UNIDENTIFIED MALE: Make sure you don't get some buckshot.

UNIDENTIFIED MALE: Ain't no buckshot.

UNIDENTIFIED MALE: I think it past. I think it past.

BELL (voice-over): You have to have a lot of skills.

(on-camera): That's the thing I'm starting to learn about living.

UNIDENTIFIED MALE: Necessity is a good teacher.

UNIDENTIFIED MALE: Well, I grew up in a coalfields and there were no deer. And the only thing, you know, that my dad taught us how to hunt, squirrels and rabbits.

(END VIDEO CLIP)

SANCHEZ: A succulent edition of "UNITED SHADES OF AMERICA," airs tomorrow night at 10:00 p.m. right here on CNN.

And hey, don't go anywhere, "SMERCONISH" is next. But then we're back in just (INAUDIBLE).

FISHER: Succulent telling me --

SANCHEZ: Delicious.

FISHER: -- that that squirrel was succulent.

SANCHEZ: I'll try some with you.

FISHER: All right. Maybe, if I was desperate. We'll see you guys in an hour.

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