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What We Know with Max Foster

Medics: Israeli Strike Kills 15 Near Medical Clinic; Zelenskyy Attends Ukraine Recovery Conference In Rome; 10 Rescued, Three Killed After Houthi Attack On Cargo Ship; Trump Praises Liberian President For His "Good English"; U.S. Judge Blocks Trump From Banning Birthright Citizenship. Aired 3-4p ET

Aired July 10, 2025 - 15:00   ET

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

[15:00:22]

LYNDA KINKADE, CNN INTERNATIONAL HOST: Horrendous images after an Israeli strike near a Gaza health center.

I'm Lynda Kinkade, in for Max Foster. This is WHAT WE KNOW.

With no immediate ceasefire in sight, Palestinians in Gaza describing a horrific Israeli attack that left children among the dead. And we warn you,

this video you're about to see is extremely disturbing. Medics say 15 people were killed in Deir al-Balah, eight of them just children. The

youngest was two years old.

They were gathered outside a clinic waiting for their mothers for supplements. Israel says it targeted a Hamas militant, adding that the

incident is under review.

Our Jeremy Diamond has more now on this strike and we strongly warn you again, this footage is graphic and very hard to watch, but we feel it's

important to show you the reality on the ground.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT (voice-over): Children's screams pierce through the smoke-filled air in central Gaza.

But screams alone cannot prepare you for the scale of the carnage unleashed by this Israeli airstrike this street is filled with the bodies of dead and

injured children, whose bodies are quickly loaded onto donkey carts.

And then there are those barely clinging to life, like this woman splayed on the ground they took my daughter, she says. Her daughter's fate has

already been sealed in her blood white dress. Four-year-old Aya is one of eight children killed in this strike. Aya and her mother were among several

families waiting to enter a health clinic run by Project Hope, an American nonprofit whose operations were known to the Israeli military.

In her white dress, Aya is impossible to miss. Minutes later, two men walk by the clinic and then an explosion fills the air. That smoke is soon

replaced by an outpouring of grief.

"Not my sister. No, not my sister," this boy cries.

The Israeli military said it regrets any harm to uninvolved individuals and is reviewing the incident. It said it was targeting a Hamas militant who

infiltrated Israel during the October 7th attacks, but declined to provide his name. These four children, killed in the targeting of a single

militant, do have names -- Amir, Mohammed, Yasmin and Aya, still in her bloodstained dress. Mohammed, wearing a makeshift plastic diaper, is a

testament to the desperate circumstances that brought his family to that clinic amid shortages of diapers and baby formula.

"Speak to me," Amir's father pleads, hugging his sons lifeless body. His brother Nidal joins him in mourning, but he hasn't just lost a nephew. His

14-year-old daughter, Samah, was also killed.

"What happened is indescribable. It's a massacre. It's genocide. It's a crime against children," Nidal says. "My daughter woke up with a headache

and went to get checked at the clinic. Suddenly, we heard the sound and came running to see all the children dead."

Salma's twin sister is inconsolable. "Please wake her up. She is lying. I know her, I swear she's lying."

As one sister mourns another, a father pleads for it all to end. "Samah is gone and the war is still ongoing," Nidal says. "May the war be gone with

Samah."

Jeremy Diamond, CNN, Jerusalem.

(END VIDEOTAPE)

KINKADE: Well, later in the program, I'll be speaking to an official from Doctors Without Borders inside Gaza about what life is like for health

workers right now.

Well, overnight, Moscow launched one of its fiercest attacks on Kyiv. Dramatic images show an intense Russian bombardment targeting the capital.

Ukrainian officials say at least two people were killed. More than a dozen wounded.

Ukrainian President Volodymyr Zelenskyy is in Rome meeting with European leaders at the Ukraine reconstruction conference. In the wake of Russia's

escalating attacks, Mr. Zelenskyy is once again calling on Kyiv's allies to step up their support.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: We must stop Russian drones and missiles and this means more air defense supplies and more investments in

intercepted drones, air defense systems and, of course, missiles.

[15:05:08]

And I urge all our partners, increase your investments. When Russia increases its attacks, we cannot have a shortage of funding for drone

production.

(END VIDEO CLIP)

KINKADE: Well, let's discuss all of this with our diplomatic editor, Nic Robertson, who joins us live from London.

Good to see you, Nic. I want to get to the Russian attack in just a moment.

But first, I want to ask you about Zelenskyy in Rome for the first time, we saw this notable shift from Washington, the U.S. joining talks on a

potential peacekeeping force after this war ends.

What can you tell us about it?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah, it's pretty significant. So, Keith Kellogg, President Trump's adviser on Ukraine, who

was at that meeting in Rome with President Zelenskyy, along with Zelenskyy and the Italian Prime Minister Gorgio Meloni, joined the coalition of the

willing that's led by the British and the French. Obviously, Starmer and Macron are meeting together and hosting it out of the U.K.

Join them and they put forward this declaration afterwards. They're calling it the Northwood declaration after the military site where they were

hosting these, where they were hosting this sort of virtual gathering. But the point being out of this, that it's laid out Europe's plans that are

absolutely diametrically opposed to what President Putin has said that he is willing to tolerate in terms of a ceasefire. What they are saying, and

this is what Keith Kellogg was on the call about discussing as well, along with Zelenskyy, along with Meloni, along with Starmer, along with Macron,

that within hours of a ceasefire in Ukraine, there would be a military force that would go into Ukraine, that would be led by a two star general

based out of Kyiv, and it would be looking at restructuring Ukraine's military, re-providing it and strengthening its defenses, basically making

it more ready to deter Russia in the future.

So, where this stands in the scheme of any ceasefire conversations that President Trump has been trying to have with President Putin isn't clear.

But I think what's been clear over the last number of months is that the Coalition of the Willing, Macron and Starmer, led by them, has not made

this, not made this point about this military force public to let Trump have these conversations with Putin.

So, it kind of indicates that patience with that in Europe or Trump's own patience with Putin has now run short. And this is part of that -- part of

the product of that.

KINKADE: All right. Nic, we will cover more on this later in the program. I'll speak with a former deputy energy minister from Russia. We appreciate

you joining us. Nic Robertson from London, thank you.

Well, Yemen's Houthi rebels are continuing to attack ships in the Red Sea, renewing fears of a shipping crisis along that crucial trade route. Ten

people have been rescued and three others were killed after Houthis attacked a Liberian-flagged vessel for several days. It was the second ship

to come under attack in a week.

The U.S. embassy in Yemen has also accused the Iranian backed group of kidnapping other crew members. The Houthis say they attacked the ship

because it was on its way to Israel.

I want to bring in retired U.S. General Wesley Clark is the former NATO Supreme Allied commander.

Good to see you, and great to have you on the program.

GEN. WESLEY CLARK (RET.), FORMER NATO SUPREME ALLIED COMMANDER: Thank you.

KINKADE: So, this was the second time Houthis have attacked a commercial shipping vessel in the past week. But this time, crew members were

reportedly kidnapped. What sort of escalation are we seeing right now?

CLARK: Well, it's a continuation, but it does show that the U.S. campaign against the Houthis, while it resulted in an agreement not to further

strike U.S. shipping, did not rob the Houthis of their capacity to attack other ships and despite the fact of the stealth bombing in Iran, Iran

remains their major supplier. Iran's obviously giving them the hardware, the technology, the surveillance that they need and so forth. They're --

this is an ongoing battle.

They say they're fighting for the Palestinian people and attacking Israel, but they're really fighting, I guess, for themselves and their recognition

and keeping some sort of resistance alive sponsored by Iran.

KINKADE: Of course, back in early May, after that U.S. mission, Donald Trump declared victory. A reported $750 million was spent to attack 1,000

Houthi targets in Yemen. So where do the Houthis stand now militarily speaking? Have they been able to rebuild their arsenal?

CLARK : I think we probably never got it all. It's very difficult in an air campaign in that kind of terrain. But Yemen looks a little on a map, but

it's quite a big place. It's difficult terrain. Without parties on the ground, with close air support, without continued 100 percent oversight for

an extended period of time, you're not going to eliminate all these potential abilities to strike.

And this was a relatively unsophisticated attack. They had boats. They had RPGs, but they did say they had ballistic missile and a cruise missile

coming in. So, this is stuff that either Iran has recently supplied or its stores left over from Iranian earlier supplies.

KINKADE: Of course, these sort of attacks by the Houthis began around November 2023, when they hit about 100 commercial vessels. They were able

to sink a couple of them. They killed several sailors, and they held crews hostage for months.

What are they likely to do with the hostages that they've just taken?

CLARK: They've got two options. They could ransom them off, or they could hold them. And so you'd have another hostage situation. But in this case,

these hostages have really nothing to do with Israel. So it's not like you could have another case where you're going to have to get out of Gaza, or

were going to do something to these people, these hostages are basically third country nationals who just happen to be accruing a ship that they

claim was headed for Israel.

So, it doesn't really make sense. But things, they don't always make sense. They're likely to be held for a while the Houthis figure out what to do and

how to get leverage out of it.

KINKADE: General Wesley Clark, always great to have you on the program. Thanks so much for joining us.

CLARK: Thank you.

KINKADE: U.S. President Donald Trump is facing criticism for praising Liberian President Joseph Boakai for his command of the English language.

That's because the official language of Liberia is, in fact, English.

Here's that awkward encounter.

(BEGIN VIDEO CLIP)

JOSEPH BOAKAI, LIBERIAN PRESIDENT: And we just want to thank you so much for this opportunity.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Thank you. And such good English. Such beautiful.

Where did you -- where did you learn to speak so beautifully? Where? Where were you educated? Where?

JOSEPH BOAKAI, LIBERIAN PRESIDENT: Yes, sir.

TRUMP: In Liberia?

BOAKAI: Yes, sir.

TRUMP: Well, that's very interesting. It's beautiful English.

BOAKAI: Sure.

(END VIDEO CLIP)

KINKADE: One Liberian diplomat told CNN President Trump's question was inappropriate and condescending, but the country's foreign minister says

there was no offense caused to the president saying what President Trump heard distinctly was the American influence on our English in Liberia. And

the Liberian president is not offended by that.

Well, let's bring in Alayna Treene, who is at the White House today.

Good to see you, Alayna.

So what's the White House saying about that exchange today?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Oh, look, they're defending the president. They actually shared a quote with CNN from the president's

Africa advisor, Massad Boulos, who essentially said that he was in the room, that there was nothing offensive about it. The president was

complimenting him and another White House adviser echoed those points.

And what I do think is actually really interesting about this, Lynda, because as I was watching this in real time, just as someone who has

covered the president, not only this administration and his campaign, but also his first administration when he was in the White House, we've seen

this with him. You know, he is someone who -- and you could really see that in the room yesterday. He believes that being in person and having

conversations and being able to negotiate in person with foreign leaders is a strength of his. He thinks that's how you get good deals done is by being

able to talk to them face to face, but often when you have a translator involved, which is what we saw with the other African leaders who were

representing different countries yesterday, the president often doesn't feel as engaged in some of those conversations.

You could see in watching this when I was watching him speaking with these different leaders, but specifically the Liberian president, you could see

him smile and kind of perk up when he realized that the Liberian president was going to be able to interact with him in English. And so that's where I

think a lot of this came from. Now, of course, as you mentioned, we have heard now from some people in Liberia taking issue with this, saying that

they believe it was offensive, that he didn't realize that the official language in the country is English. But again, you're not hearing that

necessarily from the leaders of Liberia who said that they don't take offense to it, that they believe that he was referring to the American

influence on the language, Lynda.

KINKADE: All right. Alayna Treene, good to have you with us, from outside the White House. Thank you.

Well, Brazil is giving President Trump a taste of his own medicine over his terror threat. President Lula da Silva is vowing to reciprocate Trump's 50

percent tariff if he follows through with it, marking the first time in months any other country has threatened to match President Trump's tariff

threats. Trump's tariff warning, sparked by what he calls a witch hunt trial of the former right-wing president Jair Bolsonaro.

[15:15:02]

Our Isa Soares reports.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN CORRESPONDENT: President Trump is using the economy as a political weapon. He's been saying the tariffs are about leveling the

playing field, that there's a trade imbalance and that the United States is being ripped off by other countries. In the case of Brazil, that is not

true. President Trump yet is imposing a 50 percent tariff on the country. The reason you ask, a court case against former President Jair Bolsonaro, a

case which he says is a witch hunt in this letter and should end immediately.

So, this is not about business, but about his buddy.

The two have been friends since Trump's first term.

TRUMP: Probably because of the relationship that we have, Brazil and the United States have never been closer.

SOARES: And they've been building on that relationship ever since.

In 2022, Trump supported Bolsonaro's bid for reelection.

TRUMP: So, I strongly endorse President Bolsonaro. He will be your leader for hopefully a long time.

SOARES: And even though he lost the current president, Lula Da Silva, Bolsonaro came out for Trump ahead of the 2024 election in the U.S.,

praising their exceptional relationship when he appeared at a CPAC convention.

TRUMP: President Bolsonaro, a great honor.

SOARES: Now back at the White House, Trump, using the weight of the office to help his buddy out. But why is Bolsonaro on trial?

UNIDENTIFIED MALE: They're getting into the capital tonight.

SOARES: Well, remember when Trump supporters stormed the capitol, Brazil had its own version on January 8th, 2023. Pro-Bolsonaro protesters broke

into Congress and the presidential palace. I was there in the aftermath, and I personally saw the damage the rioters had done ransacking government

buildings, destroying artifacts, including art pieces, even setting some buildings on fire.

Prosecutors say they found a connection between the riots and Brazil's former president. And earlier this year, they charged Bolsonaro, along with

33 other people, in connection with an alleged plot to overthrow the government. Those accused deny the charges.

For his part, the Brazilian leader says his country has a right to reciprocate the tariffs and has refused to get involved in Bolsonaro's

court case, telling Trump to do the same.

LULA DA SILVA, BRAZILIAN PRESIDENT: This country has laws, this country has rules, and this country has an owner, and that's the Brazilian people. So

save your judgments for your own life and keep them out of ours.

SOARES: Isa Soares, CNN, London.

(END VIDEOTAPE)

KINKADE: Well, still to come, a firsthand account of the dire humanitarian crisis in Gaza. We'll speak to an official with Doctors Without Borders

just ahead.

(COMMERCIAL BREAK)

[15:21:10]

KINKADE: Returning now to our top story tonight and a warning that the video we're going to show you is extremely disturbing. An Israeli strike

has killed 15 people gathering outside a health center in Gaza. According to the Al-Aqsa Martyrs Hospital, eight of those killed were children, the

youngest just two years old.

The head of Gaza's health ministry says the center was dispensing children's formula. The Israeli military says it was targeting a Hamas

militant involved in the October 7th attacks. Israel has intensified its strikes in recent weeks, with the Gazan health ministry saying that almost

3,000 Palestinians have been killed over the past month.

So, what we want to know is just how dire is the situation for health workers in Gaza right now?

Well, joining me now is Dr. Mohammed Abu Mughaisib. He is the deputy medical coordinator in Palestine for Doctors Without Borders, and he joins

us from Gaza tonight.

We appreciate your time. Thanks for joining us, Doctor.

DR. MOHAMMED ABU MUGHAISIB, DEPUTY MEDICAL COORDINATOR FOR PALESTINE, MSF: Thank you for having me.

KINKADE: Obviously, I want to start with that horrific attack near that health clinic, which, of course, killed and wounded children. What more can

you tell us about that incident?

ABU MUGHAISIB: I mean, first of all, I mean, it's not the first time that clinics, health facilities, hospitals are targeted directly or indirectly.

I mean, today is a really a tragic one as well. One of them is targeting -- I mean, beside the clinic, which is treating children who are suffering

from malnutrition. They were waiting with their mothers to receive supplement food and formula milk.

And, you know, an excuse of targeting a wanted person -- I mean, you target all the around the neighborhood. So that's not the first time. Today, it

was children who are suffering from this disease and malnutrition, hunger, and, you know, every day is the same story.

KINKADE: Yeah. You mentioned malnutrition and hunger. Of course, Israel imposed that full blockade on humanitarian aid in March, slightly easing

those restrictions in May.

What are you seeing now in terms of access to food and nutrition?

ABU MUGHAISIB: Actually, there is no improvement until now. I mean, there is few trucks entering. There is the distribution points that has been

opened by the American NGO with Israeli support, but actually these actually even distribution points are, you know, it's a death trap. I mean,

every day there is hundreds of people killed and injured when they are going there to pick their food kits or parcels.

So, I mean, it's not improving at all. I mean, in the market you don't find food. I mean, the bakeries are closed. I mean, the people are in poverty,

living in -- I mean, displaced, I mean, it's horrific. I mean, the situation didn't improve at all.

KINKADE: Yeah. It's horrific. The images we've been seeing there, of course, has been a long list of conflicting demands when it comes to

ceasefire talks from both Israel and Hamas. The U.S. president says he is optimistic that a ceasefire can be achieved.

What's the feeling in Gaza? Is there a sense of hope at all?

ABU MUGHAISIB: You know, I'm saying it every time. I mean, in the last few weeks, I mean, I mean, hope is really a fragile word in Gaza. People are

not having hope at all. I mean, I mean, more than 600 days of this war, people, you know, the population now of Gaza are squeezed in 25 percent of

the -- of the area. I mean, they are displaced.

I mean, there is no food, there is no schools, there is no university, there is no infrastructure, there is no what people standing in queues for

water, the hospitals are, you know, partially functioning.

I mean, in general, the situation is completely -- there is no life. I mean, so I mean, there is no hope at all. So, I don't see that the people

are really optimistic with this talks.

[15:25:03]

And they are at all, you know, not looking for it. They are looking for the basic things. They are looking to have water, to have food and to have

security.

KINKADE: And shelter, of course, you've been displaced many times, like most of the population of Gaza. Just I mean, what impact does that have

mentally, psychologically on you and others like you?

ABU MUGHAISIB: I mean, the population is completely exhausted. I mean, you know, it's --I mean, everyone has been displaced more than five times. I

mean, from different areas because of the first orders of evacuation by the Israeli army.

And of course, you know, moving and to find a safe place is very difficult to move. You know, you know, it's not very -- it's not -- it's very

difficult. You know, you don't have a big space. Gaza is a very small region. So, I mean, the population really are totally exhausted, broken,

tired. And as I told you, they lost hope as well.

KINKADE: What can the international community do right now to help?

ABU MUGHAISIB: I mean, to push again, I mean to continue pushing and raising, to stop advocate, to stop really this war. I mean, that's enough.

I mean, enough suffering for the population. I mean, in Gaza and, you know, to advocate that's what I'm asking the international community to do.

KINKADE: Dr. Mohammed Abu Mughaisib, from Doctors Without Borders, we appreciate your time. Thanks so much. And take care.

ABU MUGHAISIB: Thank you. Thank you.

KINKADE: We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

[15:30:00]

KINKADE: A U.S. judge has issued a nationwide block against President Donald Trump's order to end birthright citizenship. Last month, the U.S.

Supreme Court prohibited nationwide judicial bans unless it was in response to a class action lawsuit, as is this case.

Well, Katelyn Polantz joins us from Washington to explain all of this.

So, exactly, what does this ruling mean, Katelyn?

KATELYN POLANTZ, CNN CRIME AND JUSTICE CORRESPONDENT: Well, Lynda, it means that babies that are born in the United States to immigrant parents, even

people who may not be here legally, those babies, if they're born after February 20th of this year, they will be getting citizenship. That's what

the judge's determination was because he looked at what the Trump administration was trying to do to end birthright citizenship and said,

that is not a close call. That's what the judge's words were. He said he was going to issue a preliminary injunction to stop that policy from going

into place and making sure that those babies born after February 20th of this year do get citizenship.

This decision, it is going to be on hold a little bit for a couple of days. So, the Trump administration has the ability to appeal. They are going to

be appealing aggressively. We know that already because they've already taken this the whole way up to the Supreme Court and back once. And what

the judge in this New Hampshire case was doing, he was implementing the direction that the Supreme Court had given them.

The Supreme Court had said, you can't just universally say that this policy should not should be affecting all babies born in the United States. You

have to define the class, the group that's bringing the lawsuit. And so that's what we had today. It is the class of babies born after February of

this year. And it will be applying to them.

What this lower court judge has said, unless the Trump administration gets some sort of relief from an appellate court or perhaps from the Supreme

Court themselves, again -- Lynda.

KINKADE: So, what's the process going forward, Katelyn? How long could this play out for, and how long could this temporary ruling last?

POLANTZ: Well, the temporary ruling from the judge, things are paused for about a week. And so that's the chance that the administration has to go to

the next court, a court of appeals, an intermediary court, and then that court will decide, can this judge's ruling go into effect, meaning that

birthright citizenship is allowed and the Trump administration policy to end it would be blocked or does the appellate court let things go forward?

And then you would see a lot of activity from the Trump Justice Department trying to get Supreme Court review as well.

But this is the sort of case, and the question of the constitutionality of birthright citizenship and Trump's decision to want to end it as part of

his immigration policy is crackdown on immigrants across the country -- all of that is going to continue to move through the courts, because at the end

of the day, the Supreme Court is probably going to be the one that has to decide ultimately, is it constitutional to end birthright citizenship, or

is that something babies born in this country have a right to, to get citizenship if they are born on American soil, a big legal question that we

are still pretty far away from having a final answer on -- Lynda.

KINKADE: All right. Katelyn Polantz, staying across the door for us from Washington, thanks so much.

Well, U.S. Senator Bernie Sanders admits the United States has failed on securing its border, but says the country needs a more humane solution to

immigration.

Speaking to our Christiane Amanpour, the left-wing senator said mass deportations were not workable and believes ordinary voters would agree.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I-VT): In this country right now, you have millions and millions of people who came from Latin America or wherever, who are

working in meatpacking plants. They're harvesting crops. They've been in this country for years. They're law abiding. They are paying taxes, and

they are doing some of the most dangerous, underpaid work in America.

They're in the fields. They're in meatpacking plants. They are working with our children in childcare centers. They're working with our parents in

nursing homes.

And if you ask the American people, should we be just throwing these people, millions of these people out on the street where often without any

due process, the American people will say no. So, we need to find some solution to that problem. But it cannot simply be throwing millions and

millions of people out on the street.

(END VIDEO CLIP)

KINKADE: Bernie Sanders there.

Well, rescue crews say, searching for flood victims along the Guadalupe River could take days, if not weeks. Officials report that at least 120

people have now died in the flash flooding in central Texas, and more than 160 people remain missing. It comes amid growing questions about the local,

state and federal response to the crisis.

[15:35:00]

Well, bureaucratic obstacles may have impacted the response and rescues. Multiple officials inside FEMA tell CNN that they were ready to deploy

assets to Texas immediately. But new protocols meant some deployments weren't approved until 72 hours after the flooding began. One new internal

policy requires that DHS Secretary Kristi Noem's personal approval for expenses above $100,000. When disaster response costs often soar into the

billions.

Secretary Noem defended the response in an interview with Fox News.

(BEGIN VIDEO CLIP)

KRISTI NOEM, DHS SECRETARY: Well, we were there immediately, you know, the as soon as the flooding happened, I went there. And showed up and it was

devastating. The alert system went out from the National Weather Service. But that doesn't necessarily mean that the thousands of people that were

camping along the river, you know, heard that.

CHARLIE HURT, FOX NEWS HOST: What could be -- what could be changed? Well.

NOEM: I think that that is always a response that the local officials make a decision for each of their towns, each of their counties, what their

alert system is. We don't make the decisions for the local communities. We shouldn't make the decisions for the states because every state is

different. Every town is different.

(END VIDEO CLIP)

KINKADE: Well, a Texas Republican lawmaker says he plans to introduce legislation to allow the state to install sirens in counties.

Well, still to come, world leaders talk next steps in protecting Europe's future, while Russia launches a massive attack on Kyiv. We'll have those

details ahead.

(COMMERCIAL BREAK)

KINKADE: Welcome back. I'm Lynda Kinkade.

Russia is pushing forward with a renewed intensity in Ukraine, launching a massive attack on Kyiv. Dramatic images from overnight show the aftermath

of a drone and missile bombardment that killed at least two people in the capital. Well, tensions between Russia and the U.S. are bubbling to the

surface. U.S. President Donald Trump is slamming Russian leader Vladimir Putin for his, quote, meaningless statements regarding ceasefire

negotiations.

[15:40:07]

In response, the Kremlin now says the Ukraine peace process is not stalled and it is awaiting signals from Kyiv.

Well, what we don't know is why has Russia changed its tactics with these drone assaults?

Joining me now is Vladimir Milov, former Russian deputy energy minister and a former adviser to the opposition leader, Alexei Navalny.

Good to have you with us, Minister.

VLADIMIR MILOV, FORMER RUSSIAN DEPUTY ENERGY MINISTER: Hello. Thanks for having me on the show.

KINKADE: So overnight we saw this massive assault, another one from Russia on Ukraine. Ukrainian officials saying 400 drones, 13 missiles were used.

But it appears their strategy has changed in terms of the tactics they use. These drones appear to bypass the capital and then change directions and

increase in speed.

I want to get your understanding of why you think the Kremlin is changing its approach right now. And what it signals. Is it about overwhelming

Ukrainian defenses, or is there perhaps a deeper strategic goal?

MILOV: It is not a new tactic as such. It just has intensified recently. And I think partly it happened because Putin was emboldened by President

Trump's, I have to say, it, relatively soft approach to negotiating with Russia. Putin basically became much more maximalist in his hardline demands

of late.

And another thing here is Putin's senses that there is growing war fatigue in the west, fatigue of supporting Ukraine. There are some trends in

Ukrainian public opinion which tell that many people are also, you know, very weary after all these years of war, and they might be willing to

accept some compromise on Russia's terms.

He wants to exacerbate these trends. He wants to be as brutal as possible to show his determination to actually make some peace talks happen on his

terms.

KINKADE: Yeah. And of course, as you mentioned, with those drone attacks, Russia has scaled up the production of these Israeli designed drones. And

certainly in the last two months in June and now, July, we've seen a massive uptick in the use of these sort of killing machines every day in

the course of this war.

How effective are they?

MILOV: This, I think, just underlines the importance of supplying Ukraine with sufficient number of anti-aircraft devices and missiles to counter

these attacks. I think there's been a clear correlation with the growth in size of these attacks and the civilian deaths in Ukraine while Ukraine was

out of anti-aircraft missiles stock, that's the issue that have been broadly discussed also with the U.S. and with posing U.S. military aid.

Patriot missile systems are vital in this regard.

So, Russia senses that there is weakness there. Ukrainian air defenses are undersupplied and exacerbates the attacks. But I think also this -- this is

more a PR operation because it covers up a lot of problems that exist with Putin.

I mean, we can go across the board, lack of manpower of an imperfect battlefield tactics, significant problems with military production on other

ends like battlefield vehicles, for example. This is where Russia is running behind drones, financial problems, budget deficit insufficient

money to finance the war.

Putin wants to cover all these mounting problems with, you know, increased brutality of these attacks to create a PR impression that he might be

gaining an upper hand. I think it's important not to fall for that PR exercise.

KINKADE: And, Minister, you mentioned earlier about the negotiations that Trump was trying to have with Vladimir Putin and clearly failing. He's

recently acknowledged that ending the war is not easy and that Putin might not actually even want peace.

Do you believe that Trump is waking up to the true nature of Putin's regime, or is it just political posturing?

MILOV: I think President Trump is probably cornered because it's evident to everybody that Putin is really not willing to give away any serious

concessions. So, Trump has to say something. But the biggest question is not that. The biggest question is what Mr. Trump is ready to do to

seriously change his long-term approach.

And I think here Putin has all the reasons to sort of feel safe for the moment, because it doesn't look like neither Trump nor his Republican Party

is really willing to reengage into supplying Ukraine with massive military aid. Doesn't look that way, which means this is one more reason why Putin

feels emboldened at the moment.

KINKADE: Vladimir Milov, we appreciate your perspective on this. Thanks so much for your time.

Well, a high-end new beach resort is getting a lot of attention, but this isn't your typical family-friendly destination. Still to come, the resort

that's just opened in North Korea.

(COMMERCIAL BREAK)

KINKADE: Well, going, going, gone. Sold to the iconic purse lover. One of the most famous bags in the world has just been auctioned off in Paris.

You're looking at the original Birkin bag. So, as it sells for a record $10 million. It was a custom-built design for the late actor and singer Jane

Birkin, who turned their Hermes tote into a fashion icon. As Sotheby's says, it's a rare moment in the world of fashion when an object transcends

trends and becomes a legend.

Well, let's bring in Anna Stewart for more on all of this.

Good to see you, Anna.

So Birkin bags are known for fetching eye watering prices, often tens or even hundreds of thousands of dollars. But this really is insane, $10

million for a used bag.

ANNA STEWART, CNN CORRESPONDENT: Weah, well get on to just how used it looks, but I think this surpassed all expectations. We knew that advanced

bids before the actual auction took place were coming in over $1 million, but $10 million. And then you look at this bag and it has scuffs. It has

stains, it's scratched. It's got remnants of glue, I think, from some stickers.

But that's all part of the story of the bag and actually part of its value, because this was Jane Birkin bag. And unlike Birkins today, Lynda, you

know, she actually used it. She piled stuff into it. I've seen photos of her using it. It's left on the floor.

These days, if you buy a Birkin bag, of course, you're more likely to put it on a bag stool in a restaurant and keep it perhaps behind some glass in

your house. They are worth a fortune. This one, though, worth more because of the fashion law. Because it was the original.

The story, of course, being that Jane Birkin was saddled with the former CEO of Hermes at the time in the 80s, on a plane to Paris, and was

complaining about the sort of lack of functionality of a bag. And this is what inspired the Birkin and was named after her. So this is the original,

the OG.

KINKADE: The OG. It is an incredible story, but I have to wonder, like as far as investments go, how does the Birkin bag stack up?

[15:50:03]

STEWART: Well, you know what the argument is there for buying a Birkin bag. Lynda, I can tell you, having done more research than I thought I would

ever have to do on such a thing. Listen, it was $2,000 new in 1984. They're now selling for about $13,000 new, but they are worth so much more on the

secondary market because so few are made every year. And actually, the client list is really limited.

Hermes won't sell just anyone a Birkin bag, no matter how much money you have. So, on the secondary market they cost a lot more. And actually

there's some study from Bag Hunter. It shows that between 1980 and 2015, the Birkins value on the secondary market averaged about 14.2 percent a

year.

Now, as you can see, that actually beat the S&P 500 and gold. Now this is quite an old study. I haven't found enough banks have been interested to

follow this alternative investment, but I think the arguments there maybe we should all be putting our money into Birkins.

KINKADE: Maybe we should. I mean, it sounds like a good excuse for me.

Anna Stewart, as always, good to see you. Thank you.

Well, if you build it, will visitors come? Thats a big question. Surrounding a new luxury beach resort in North Korea.

CNN's Will Ripley takes a look at how the resort is built and who might stay there.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Kim Jong- un's yacht glides ashore on North Korea's eastern coast. The Wonsan Kalma Coastal tourist zone, miles of white sand beaches, water sports and luxury

villas, 1,500 hotel rooms.

Wonsan was known as the ruling Kim family's favorite summer retreat, and one of North Korea's most active military testing grounds.

TRUMP: But they have great beaches. You see that whenever they're exploding their cannons into the ocean. And I explain, I said, you know, instead of

doing that, you could have the best hotels in the world right there.

RIPLEY: President Donald Trump once pitched U.S. investment in Wonsan.

NARRATOR: Were the doors of opportunity are ready to be opened, investment from around the world?

One moment, one choice.

RIPLEY: Today, seven years later, Kim beat Trump to the punch, building it on his own.

The resort features grand hotels with luxurious amenities, even international grade summit halls, a soft power backdrop perhaps setting the

stage for diplomacy.

Kim did bring the Russian ambassador for the grand opening. These days, Pyongyang reportedly won't even accept Trump's letters at the United

Nations.

Kim's wife, Ri Sol-ju, made her first state media appearance in more than a year, often walking several steps behind her husband and their teenage

daughter, believed to be Kim Ju-ae. She often appears alongside her father at official events, fueling speculation she's being groomed as a possible

successor.

Kim personally inspected the Wonsan project at least six times, including once when I was there reporting for CNN.

On the ground here in North Korea, now they're building a beachfront resort that North Korean leader Kim Jong-un came here to Wonsan to inspect just

yesterday.

How have things improved under Kim Jong-un?

"Every day we see changes," he told me, "like new construction."

The new resort includes a massive water park and a surf machine generating artificial waves. And this very real wipeout. Even grannies firing pistols

on horseback.

This retiree says she was moved to tears thinking about how their leader has given them such amazing benefits, even as much of the country still

struggles with food shortages, medical care and electricity.

Now, North Korea celebrates a resort. Kim built it without Trump, without aid, without compromise, and with every single one of his nuclear weapons

still intact.

(END VIDEOTAPE)

RIPLEY (on camera): They built it. But who will come? Aside from locals, only Russian tour groups can visit the beach resort. Certainly no

Westerners, not even Chinese tourists, at least for now. In fact, it may be quite some time before North Korea even comes close to being able to fill

those dozens of brand-new hotels designed to accommodate up to 20,000 people.

Will Ripley, CNN, Taipei.

KINKADE; Well, finally, this hour, the world's most famous hippo is celebrating a birthday.

Moo Deng, the pygmy hippo who has become a viral sensation, turned one. She and her mother were given a huge tub of tropical fruit as a birthday treat.

Moo Deng's cute antics have been featured in memes and viral videos, turning her into an international celebrity. And fans, of course, have

flocked to this zoo in Thailand to join in the celebration.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): This will be part of their memories, the kids, because they've not seen her before and they can go to

school and tell their friends that they've seen her. Now it's their childhood memory.

(END VIDEO CLIP)

KINKADE: The charity auction was held as part of the birthday festivities, and a cost of Moo Deng's footprints sold for more than $21,000.

So happy birthday to Moo. At least that's less than the cost of a new Birkin bag.

I'm Lynda Kinkade. That is WHAT WE KNOW.

"QUEST MEANS BUSINESS" with Paula Newton is next.

END

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