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What We Know with Max Foster

U.S. Military Carries Out New Strikes On Iranian Targets; Sources: U.S. Army Secretary Resigning Amid Tensions With Hegseth; Germany Blames Russia For Drone Attack On Leipzig Airport; Death Toll In Nepal Tops 1,000+ People, Thousands Still Missing; Jury In Lindsay Clancy Murder Trial Says It Is Deadlocked; Democratic States Push Back On Trump's Mail-In Ballot Plan. Aired 3-4p ET

Aired September 01, 2026 - 15:00   ET

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

[15:00:25]

MAX FOSTER,CNN HOST: New strikes and new threats against Iran.

This is WHAT WE KNOW.

President Donald Trump saying the United States is striking Iran tonight with, quote, "large and powerful attacks". Mr. Trump says it's in response

to Iran attempting to attack commercial ships in the state of Hormuz, warning harsher strikes could be on the way.

Taking to his Truth Social, the president wrote, "If the failed nation of Iran retaliates for this very justified attack, they will be hit again at a

much harder and higher level, but it will not be the biggest attack of them all. That is waiting in the wings, and when it's over, there will be very

little left of the Islamic Republic of Iran."

Joining us now is Kevin Liptak.

From what we can see, they're already responding and attacking back, aren't they, the Iranians?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Right, and they have threatened to do that, and it sounds as if that retaliation is underway.

Now the scale of it I don't think we know at this point or what specifically the Iranians plan to target but what we had heard earlier were

threats. from their military headquarters saying that they would deliver a, quote, crushing and devastating blow against the American enemy, and that,

quote, the more the U.S. military persists in its aggression in the region, the greater and heavier the losses it will have to endure.

And so, it does seem as if we are back now, at least for today, to this cycle of attacks and retaliation that really colored this conflict for

several months over the summer. You know, for the last month or so there had been of relative calm as the president backed away from military

pressure on Iran and tried to ramp up the economic pressure on Tehran. But that calm has now been punctured by these successive days of back-and-forth

attacks. You know, this began on Sunday when the U.S. went after what it said were sites in Iran that were launching mines into the Strait of

Hormuz. Iran retaliated by firing at U.S. bases in Jordan and the United Arab Emirates. Those missiles were intercepted, and there were no

casualties and no damage.

But clearly, the president found it necessary to respond to that retaliation, and now we're back to this period where these strikes keep

going back and forth without really any clear sign that the diplomacy is continuing. President Trump has actually informed his negotiators that they

should not be talking with Iran until they get a better signal from the Iranians, that they are serious about striking a deal that the president

could accept, and there's no indication at this point that they're any closer to that kind of a deal.

And so, we do seem to be going back to this state of the conflict that is neither a full ceasefire but also not back to the level of attacks that we

saw at the beginning of the war.

You know, inside the White House, I think there had been a real desire to avoid that kind of conflict because, one, the munitions are dwindling. We

know that. In particular, the Patriot interceptors have come in short supply. That's what is defending the U.S. assets in the region from these

Iranian aerial strikes. But two, the war is just generally unpopular, and as we get closer and closer to the midterm elections, that is certainly

weighing on Republicans who want to see, for example, gas prices come down. Right now, we're seeing the price of oil actually go up, and the major

indices in the United States trading sharply lower as these strikes resume.

And so, clearly, now, a new phase potentially of the conflict as the president threatens even greater destruction in Iran. As of now, we haven't

seen that just yet, but clearly heading in the direction of escalation, Max.

FOSTER: Okay. Appreciate it, Kevin. Thank you, from Washington.

Multiple sources telling CNN U.S. Army Secretary Dan Driscoll has submitted his resignation to President Trump. One source said the decision was

unsurprising given the tension between Driscoll and the U.S. Defense Secretary Pete Hegseth.

Driscoll is an Army veteran. He's a longtime friend of Vice President J.D. Vance. His departure has long been rumored. It comes six months into the

Iran war with no end in sight.

Let's get more from Brian Todd.

I guess the relationship with the vice president may have played into this.

BRIAN TODD, CNN CORRESPONDENT: That's right, Max. That is one thing that played into the Driscoll resignation and the months of tension between

Driscoll and Defense Secretary Pete Hegseth.

We do have some new source reporting on all of this from our colleagues Haley Britsky, Kristen Holmes, Kevin Liptak, and Zachary Cohen, who spoke

to multiple sources familiar with the matter.

[15:05:07]

One of the sources saying this was not surprising, the Dan Driscoll resignation, not surprising because of the months of tension between

Driscoll and Defense Secretary Pete Hegseth. A second source telling CNN that Driscoll had, quote, brought up concerns with the administration

surrounding Army transformation and readiness, and concerns about Hegseth's blocking of those efforts, specifically by firing the generals who were

responsible for those efforts. So that was really at the heart of Driscoll's frustration here. Driscoll's departure had long been rumored

because of the tension between he and Defense Secretary Hegseth.

CNN had previously reported that Hegseth had been upset with Driscoll for apparently not being deferential enough to him, at least at some One source

of tension between Hegseth and Driscoll was the fact that Driscoll did, as Max mentioned, have a close relationship with Vice President J.D. Vance,

and that Hegseth viewed, you know, Driscoll's reported dealings with the White House as an effort to go around him and straight to the White House,

straight to J.D. Vance and others.

Multiple sources telling CNN that almost from the beginning of his tenure, Defense Secretary Pete Hegseth has been distrustful of several top

officials and questioning their loyalties. And this is kind of evidenced by just who he's pushed out in recent months. And here's a list of at least

some of them, but it's not all of them.

You've got Army Secretary Dan Driscoll, who announced his resignation yesterday on August 31st.

You've got Army General Christopher Donahue. He is the commander of U.S. forces in Europe and Africa, a very highly respected commander. He stepped

down in June. Hegseth had not yet nominated him for a new position.

You've got Navy Secretary John Phelan, in April. He had repeated clashes with Hegseth over shipbuilding and other issues. He also annoyed Hegseth by

repeatedly taking matters directly to President Trump, who he had a personal relationship with.

Then there was Army Chief of Staff General Randy George. He was fired by Hegseth in April. George had worked closely with Dan Driscoll. Also a very

highly respected Army Chief of Staff was Randy George.

And then there was Army General David Hodney. He was commander of the Transformation and Training Command. He was forced out by Pete Hegseth also

in the month of April. He had worked with General Randy George on the transformation of how U.S. forces fight on the battlefield.

These commanders, Max, were just instrumental in reshaping the U.S. military, transforming the way the military fights on the background.

Hegseth pretty much cut out the knees of all of them and forced them out. And that list that we showed you there really wasn't half of the list of

other top generals that he pushed out.

Also, our military analyst, Colonel Cedric Leighton, makes a good point top general that either leaves, is pushed out or whatever, you've got maybe 80

or so people around that general who have to be either changed, displaced, changed the nature of their jobs or something because of the support roles

and just how critical that infrastructure is for every top general and admiral in the U.S. military.

So just a lot of disruption, a lot of chaos at the very top ranks of the Pentagon, Max, pretty much all at the hands of Pete Hegseth.

FOSTER: Yeah, fascinating. Brian, thank you.

Now to what Germany is calling a high-risk situation that fits into a broader pattern of Russian destabilization operations against Europe.

German officials are accusing Russia of carrying out a drone attack targeting the airport in Leipzig last month. They've ordered retaliatory

measures, including closing Russia's consulate in Bonn. NATO says it will continue to strengthen our ability to deter and defend all allies against

any threat and the EU says its foreign ministers are working on a joint response.

CNN's Fred Pleitgen is in Berlin.

Obviously, this was a suspicion. Now Germany's come out in quite a bold way and there are going to be repercussions here.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT; There are going to be repercussions, and you're absolutely right, the Germans did come out

in a pretty bold way after they said that both their law enforcement as well as their security services came to the conclusion that Russia was

behind this hybrid attack, as they put it. As we recall, on August 4th, there was an explosive-laden drone that flew into the Leipzig airport near

a Ukrainian cargo plane and then failed to explode. The Germans have said that after analyzing that drone and the explosives, they came to the

conclusion that the Russians were behind this. that they have as well, which they did not disclose at this point in time. They said that the plot

seemed to be very sophisticated, the drone also seemed to be very sophisticated, but they also believe that the people who actually flew that

drone were, as they put it, lower-level operatives.

And you're absolutely right. The Germans then coming out with a flurry of new measures. You mentioned closing the consulate in Bonn in the west of

Germany, the Russian consulate, but then also a cultural house here in Berlin, the Russian house.

[15:10:00]

They also said they're going to make it more restrictive for Russians entering here into Germany, and also continuously go after what Germany and

others call the "dark fleet", which is, of course, a fleet of tankers that the Western countries, Germany, the U.S. and others, suspect are carrying

Russian oil that is under sanction.

So, certainly the Germans are saying that on their part they are doing that. But you're also absolutely right to point out, Max, that the Germans

are saying that they are also going to be discussing this on a European level to get a more forceful joint European and possibly even NATO response

to all of this.

I also did get in touch with the Russians as well, with the spokeswoman for Russia's foreign ministry. She obviously denied all these allegations. She

said that the Russians -- Germans were looking for a pretext to go after Russia. She also accused the Germans of stoking, as she put it, the war in

Ukraine and being behind attacks on Russian civilians. At the end, the Russians then warning that any measures against Russia will be met by

countermeasures from the Russian Federation, Max.

FOSTER: Fred Pleitgen in Berlin, thank you.

Now, the death toll from the deadly floods in Nepal has now passed a thousand. That's according to Nepali officials who added that nearly 4,000

are still missing from last week's catastrophe. More than 600 of those missing are workers in tunnels in a hydropower project, along with Nepali

army and police.

As time passes, families of those missing are bracing themselves for the very worst.

Here's Will Ripley with more.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's a pretty significant emotional milestone on the ground here to have the number of

deaths officially cross 1,000. But the reality that people are starting to process and wrap their heads around is it's going to be a question of how

many thousand are dead by the time this is all said and done.

And the reason for that is simple. When you see a giant wall of water traveling at such a fast speed, obliterating buildings in a matter of

seconds, it's unsurvivable for most people who are in the path of that. Now there have been some exceptions to that.

We met the mother of a young girl named Manisha (ph), a five-year-old girl who her parents thought she was dead when the flood swept their house away

in about five seconds. And yet rescuers found her two and a half days or 60 hours after the flood between two battered buildings wedged in an air

pocket that allowed her to survive. I spoke with her mother exclusively.

Here's a piece of what she had to say.

It's miraculous that given the force of that water, that she was able to have a place where she could survive.

GITA UCHAI MAGAR, MOTHER OF RESCUED GIRL (through translator): It was miraculous. When the child was found, it felt like a miracle. I thought,

there is a God.

RIPLEY: They are exceedingly lucky. Even though they lost their home, they lost all of their possessions. They know that many, many people here in

Nepal have lost so much more.

And I have to say, from my trips to Bidur and other areas really heavily impacted by this flood, everybody who I met who lost family members. I met

a young woman who lost 17 family members. I met a young man who lost eight family members. None of them have seen a body of these family members that

they know are lost that they are grieving. And some of them hadn't even been recorded on the official list of the missing by the time that I spoke

to them.

So I think the reality that everybody needs to mentally prepare themselves for is that the numbers from this tragedy, as horrific as they are now, are

likely to get even more horrific in the days and weeks and months to come. And there is a very likely scenario that many, many people who are

relatives of victims will never get closure in terms of a body.

They're trying to do DNA testing, but that's pretty limited. And the fact that bodies are now decomposing so rapidly that they're having to bury them

in mass graves hundreds of miles from where they were washed away is a sign of just how grim and dire this situation is.

(END VIDEOTAPE)

FOSTER: Will Ripley there in Nepal.

Coming up, the jury deadlocks in the Lindsay Clancy trial. We'll look at what the judge told jurors and what it may mean for the case moving ahead.

(COMMERCIAL BREAK)

[15:17:20]

FOSTER: Right now, jurors are deliberating the fate of Lindsay Clancy, the mother charged with the murder in the deaths of her three young children.

That's after they sent a note to the judge today saying they were deadlocked in the case and unable to reach a unanimous verdict. The judge

told the panel of nine women and three men to resume deliberations which are now in their fourth day.

CNN's Brynn Gingras has been following the proceedings and joins us.

I guess the key question here, Brynn, is what the split is, whether it's one person holding out or half and half, that very much affects whether or

not we're going to get an outcome here.

BRYNN GINGRAS, CNN U.S. NATIONAL CORRESPONDENT: I mean, yeah, exactly, Max. It's so hard to tell. I mean, their body language was very stoic,

wasn't really giving away anything when they were brought back into the courtroom and they told the judge that they were deadlocked.

But look, they usually wrap up the day by about four o'clock, so about 45 minutes from right now. That'll put them at about 24 hours of being behind

closed doors deliberating this case. And of course, there's so much evidence, so many witnesses testimony to go through, but still that is a

very long time to be spending together talking about this. So, it's got to be very difficult.

But I do want you to hear the moment that they were brought into the courtroom and that the judge told the courtroom. what their note had

suggested really just 45 minutes into the day today.

(BEGIN VIDEO CLIP)

JUDGE WILLIAM SULLIVAN: I know that this was a long trial. All right? I know there were over 80 witnesses. There were over 300 exhibits. And -- but

because of that, I'm going to ask you to go back out, keeping in mind all of the instructions that I gave you to go out and to continue your

deliberations at this time. All right?

(END VIDEO CLIP)

GINGRAS: And when he actually said that Max, there was an audible gasp in the courtroom, according to our colleagues that are inside there. Look, we

haven't even heard from them since this happened at about ten o'clock this morning. No questions, no asking for more evidence, nothing like that.

So, clearly, they are working hard to get to some sort of resolution. It's unclear if they will actually have one today. One thing is for certain

though, Max, we know that this was sort of an informal request from the judge to go back and continue their deliberations. He didn't have to give

the two what's called the Tuey Rodriguez charge in the Commonwealth of Massachusetts. Otherwise, most people know as the Allen charge, which is to

formally read the fact that they need to continue deliberating.

So, it's possible if they do come back and say we are still deadlocked, we might hear that next. We might have a verdict. Not really sure which way

the court will go, but certainly there are still some options on the table, even though we haven't heard from them again today.

FOSTER: OK, Brynn, back to you when we get that. Thank you so much.

GINGRAS: Yeah.

FOSTER: What we don't know is could this case end in a mistrial?

Joining us now, attorney Amy Lee Copeland.

Thank you for joining us, Amy Lee.

I guess it is a possibility, isn't it? But the judge is going to do everything to avoid that.

AMY LEE COPELAND, FORMER FEDERAL PROSECUTOR, SOUTHERN DISTRICT OF GEORGIA: He sure is, Max. It takes a lot of time and resources. I'm sure everyone is

exhausted and this is such an emotional trial. It would be very difficult for people to try that again.

And as Brynn said, on the second time around, almost certainly the judge will give the Allen charge. That's what we call dynamite charge among

lawyers. It's designed to blast up a stalemate and the judge will remind them of those facts.

If they come back again and say, we continue to be deadlocked, he's going to tell him no one can decide this case better than you, but he's also

going to tell him hang on to any of your personally held beliefs. If you can't be swayed, it's OK to do that.

It's interesting to see what's going to happen next.

FOSTER: Will he know what the split is? I guess he doesn't know either, does he? But are we helpful to that because it'll show the chances of

whether or not they're going to agree?

COPELAND: And that's either something most judges don't or can't ask. They just take the jury up the word that there is a deadlock and the -- you

know, it started with a note. We've deliberated for hours and we can't reach a verdict. So, we could see another note like that or we could see a

verdict sometime. But under Massachusetts law, the judge can send them back to deliberate only twice after the jury says we're deadlocked. If the jury

wants to keep going, they can ask. But I think this jury is probably very tired and wants to go home.

FOSTER: If there's a mistrial, is Lindsay Clancy able to leave? I mean, what happens?

COPELAND: If there's a mistrial, she hasn't been convicted, and several things can happen. Number one, the state can elect to retry her. Clancy's

defense attorney has already said, you know, listen, if they want to try it again, I'm here. We're trying it again.

But other things can happen, too. Most courts allow jurors, if they are willing to, to talk to the party's attorneys. So, if there is a mistrial, I

wouldn't be surprised if the prosecutor and the defense talks to the attorney, sees what the sticking points were, what was convincing.

This could result in the state going ahead with a second trial. The state could say, you know, I think we did our best, and this isn't going to be a

great idea for us. They might offer an offer she can't refuse.

But there are all sorts of different options if a mistrial is declared a mistrial, that the state can retry her. It's not an adjudication of guilt.

FOSTER: I know this is a very complex and very emotional case, and postpartum psychosis is something that has, you know, gained a raised

awareness as a result of this, and that's what many people are cheering. But ultimately, if she isn't convicted, we know that she did it, what does

that say for justice? I mean, isn't ultimately the justice system about getting justice for the victims here, who were the children?

COPELAND: So that's an interesting question, because there are two different versions of not guilty that the verdict form allows a jury to

find. One is just not guilty straight out. And I don't think that's likely. She has just said again and again, I killed my children.

But if the jury finds you're not guilty due to a lack of criminal responsibility, she will likely go into a state psychiatric hospital for

treatment. And who knows how long she would stay there -- months, years, until, you know, she is cured, until a judge will let her out. She wouldn't

be walking around free after this verdict.

The justice for the children is, you know, in our system, we just do not incarcerate. We don't punitively punish people that lack the mental

capacity to commit a crime. And of the two not guilty verdicts, again, I just don't think it's possible the jury is going to say not guilty, period.

But I do think she has a shot of not guilty due to lack of criminal responsibility.

FOSTER: It's a fascinating case, isn't it? Thank you so much for joining us, Amy Lee, as ever, for your insightful --

COPELAND: Thank you, Max.

FOSTER: We are going to go to a very disturbing case now in England. A man accused of drugging his wife and allowing other men to sexually abuse her

going on trial today in Manchester.

CNN's Saskya Vandoorne reports.

(BEGIN VIDEOTAPE)

SASKYA VANDOORNE, CNN PARIS BUREAU CHIEF: Twelve men from across Britain held a husband drug and sexually abuse his own wife, according to

prosecutors. Today, all of them are due to go on trial alongside the woman's husband in a case expected to last until December. Authorities say

the husband in his 60s can't be named to protect his wife's identity.

[15:25:01]

He was charged with 48 counts spanning a 20-year period, initially denying them all, but he has since admitted to drugging and sexually assaulting

her, according to court documents. He's pleaded guilty to five counts of rape, six counts of assault by penetration, and three counts of sexual

assault, as well as sharing intimate images of his wife without her consent.

But he still denies dozens of the other charges, including allegations that he conspired 13 other men to drug and rape her. Those men are aged between

28 and 73. Most are accused of directly taking part in the sexual abuse, while others are accused of helping to supply substances intended to render

her unconscious.

Among them is a paramedic, Jonathan Kirk, who was photographed shaking hands with Prince Harry. Another is a former football club chief executive

called Karl Lindsay. The men now going on trial deny the charges against them.

A 13th man, Keith Fotheringham of Scotland, was also charged and has already pleaded guilty to all the charges he faced, including conspiracy to

rape and conspiracy to administer a substance with intent.

Today, a jury in Manchester will begin hearing the case against them.

Saskya Vandoorne, CNN, Manchester.

(END VIDEOTAPE)

FOSTER: With just weeks to go until the U.S. midterm elections, a U.S. Postal Service official says Donald Trump's executive order on mail-in

voting could cause major problems. Now the unnamed whistleblower says there isn't much -- well, it isn't enough time to adequately test the technical

hurdles required by Mr. Trump's executive order. He predicted huge batches of mail-in ballots could be rejected and undelivered.

As a result, President Trump has ordered the Postal Service to work with Homeland Security to ensure that ballots are only mailed to verified U.S.

citizens. Meanwhile, Democratic states have gone to court to challenge the president's mail-in ballot plans.

Just a short while ago, CNN spoke to a Democratic secretary of state about the uncertainty involving mail-in voting.

(BEGIN VIDEO CLIP)

CISCO AGUILAR, NEVADA SECRETARY OF STATE: We have a president who wants to choose his own voters while the voters choosing the elected. Nevada will

continue to run its elections as we have in the past until a judge tells me otherwise. We're continuing the legal fight. We know that Democratic

secretaries of state are standing ground. They are not going to relent in allowing this administration to dictate how to run elections because the

Constitution is very clear that states run elections, not the federal government, not the United States Postal Service. And it is disheartening

that the Postal Service is doing what they're doing, but we're going to hold them accountable in court.

(END VIDEO CLIP)

FOSTER: Well, CNN has learned that the U.S. Department of Homeland Security is launching a major push to investigate voter fraud in the

upcoming midterms. It's acting on Donald Trump's largely debunked claims that there's widespread voting by non-citizens in the U.S., as Priscilla

Alvarez reports.

(BEGIN VIDEOTAPE)

PRISCILLA ALVAREZ, CNN CORRESPONDENT: The Department of Homeland Security has accelerated its efforts into investigating voter fraud as part of the

president's broader crusade on this issue. Already, for example, the Department of Homeland Security has pushed states to share their voter

rolls for audit, among other measures. And in this case, we're learning that starting today, HSI, which is under the agency Immigration and Customs

Enforcement, is going to launch a coordinated criminal voter fraud surge initiative to pursue investigative leads, conduct field interviews, and

support timely prosecutorial review according to guidance that we reviewed.

Now offices in nine states will be following investigative leads. Those include, for example, Washington, Wisconsin, Missouri, Georgia, California,

Pennsylvania, Nevada, New York, and Connecticut. Now, of course, the timing of this is notable. It is only a few months shy of the midterm elections

and generally federal governments have tried to avoid any overt investigations into elections or while elections are on the horizon for

fear of any sort of chilling effect.

Now that has been the Justice Department's policy and in this case it's the Department of Homeland Security that is investigating and they're not

obligated to follow that policy and there are exceptions for exceptional circumstances, and the department has been in this ongoing effort of

rooting out what they say is voter fraud.

Now, in a statement, the Department of Homeland Security said the following, quote, "While ICE Homeland Security investigations is not able

to comment on any active investigations, HSI is actively rooting out and investigating election fraud wherever it can be found. They went on to say

that under President Trump, HSI is committed to restoring integrity to our election systems and ensuring that American citizens and only American

citizens are electing American leaders.

Now, it's worth noting, of course, that experts say that there is no evidence of election or rather widespread voter fraud that has occurred in

recent elections. However, the administration is continuing to tout their work on this and pushing forward with it. Late last week, for example, they

also announced the arrest of a Honduran national who they say falsely claimed to be a U.S. citizen and registered to vote.

[15:30:07]

So, this continues to be a big effort by the administration and clearly one the Department of Homeland Security is going to be a central force in.

Back to you.

(END VIDEOTAPE)

FOSTER: Now, coming up, there's a battle over leadership of the Pentagon, just as the United States launches new strikes on Iran. Now some

Republicans are voicing their frustration with Pete Hegseth's leadership. Why they're upset with him after the break.

(COMMERCIAL BREAK)

FOSTER: Defense Secretary Pete Hegseth taking heat from Republicans on Capitol Hill after his falling out with the outgoing Army Secretary Dan

Driscoll. As we discussed earlier, Driscoll quit after flagging concerns about Hegseth's removal of several top generals. The Army's chief of staff

and various other top officials have been forced out in recent months.

Now the Republican Congressman Don Bacon told our Manu Raju that he thinks Hegseth is being unwise.

(BEGIN VIDEO CLIP)

REP. DON BACON (R-NE): We've lost service chiefs, joint commanders, like Cyber Command, and it's not been healthy.

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: What does it say about Hegseth's leadership, specifically? Well, this is one of the big negatives

with him right now.

(END VIDEO CLIP)

FOSTER: So, what we want to know is, does the Pentagon have a leadership problem?

Joining us now, CNN military analyst Colonel Cedric Leighton.

Colonel, my first question, I guess, is when we hear the long list of very senior staff who've been leaving, how damaging has that been just on a

practical basis away from the politics for the long list of very senior staff who've been leaving? How damaging has that been just on a practical

basis away from the politics for the US military at such a tough time for them?

[15:35:02]

CEDRIC LEIGHTON, CNN MILITARY ANALYST: Yeah, Max, it's been extremely damaging. And when you consider the fact that the U.S. is engaged in a

conflict with Iran, you have the obvious war in Ukraine, between Russia and Ukraine, which requires U.S. military support. There are so many different

aspects to this, plus the usual readiness questions.

There is a significant shortfall of not only talent now that many of these people have been forced out of their very senior positions. But you also

have a problem bringing in new people who not only can do the job, but who also fit the criteria, some of which apparently are moving criteria when it

comes to what Secretary Hegseth actually wants in his subordinates.

So, this is a very difficult situation where people are basically being forced to toe a political line when the U.S. military is supposed to be an

apolitical organization.

FOSTER: He's also trying to show his strength, isn't he? Because as we understand it in this latest case, the general we were talking about had a

very good relationship with the vice president, and perhaps there was concern that Hegseth was having someone work for him who was going around

him, going to the White House, which isn't good for his leadership.

How damaging is that actually for the military?

LEIGHTON: It's very damaging and you know the military has a chain of command for a reason. Now there are situations of course where people will

have prior relationships with someone and the most professional thing to do is to acknowledge that relationship, but always to be loyal to your boss.

Sometimes it's possible to do that. Sometimes there are practical considerations that may limit that that possibility, but it is extremely

damaging because you know not only is there a good order discipline question here.

But there's also a question of uncertainty and basically fear among the senior person, in this case Secretary Hegseth, because he seems insecure in

his current position, and that insecurity breeds mistrust, which then breeds these kinds of environments where from a operational perspective,

it's a very difficult situation in which to work and in In a case like the Pentagon where you basically need to understand not only what your mission

is, but also whom you can trust and whom you can trust within the bureaucracy, it becomes a major issue and it could be detrimental,

certainly for the subordinates, but also for the leadership in the Pentagon as well.

FOSTER: What's the danger then for Hegseth going forward and indeed the commander in chief who needs everyone in line at the Pentagon, obviously.

Yeah, well, one of the big dangers, Max, is that they're not going to be told the truth about the things that are actually going on on the ground.

For example, it seems to have come as a surprise to President Trump that there are munitions shortages of the kind that we're experiencing with the

Patriot missiles and the THAAD systems. These are defensive missile systems. But in order to conduct military operations, you also need to

protect your base.

And when you have a situation like you have in Iran, which apparently was not well thought out from a planning perspective -- operationally, there

were some successes, but if you don't plan for these kinds of missions and have adequate supplies, that really reflects poorly not only in the

planning process, but on the people who initiated these operations. And based on the news accounts that we're seeing as far as the start of the

Iran war is concerned, Secretary Hegseth played a leading role in that, and that of course creates some significant turmoil when things aren't

adequately planned, adequately prepared for.

And, you know, for these kinds of operations, you usually require months of preparatory work before you actually go and execute them. And that clearly

did not happen in this case.

FOSTER: No, absolutely. Colonel Cedric Leighton, always love having you on the program. Thank you so much for your thoughts on that.

It is the final moment of trade on Wall Street. Stocks are falling today, actually. The Dow falling more than 400 points as renewed clashes in Iran

concern investors.

This is our Business Breakout.

Investors also worried about rising global bond yields, which have reached their highest levels in decades. They've been pushed up by higher oil

prices and concerns central banks could raise interest rates this month. The steep rise in bond yields, can push up the cost of borrowing.

U.S. President Donald Trump is hosting a group of energy executives at the White House today. The talks expected to center around how to lower gas

prices, which have soared because of Mr. Trump's war with Iran.

[15:40:03]

The number of available jobs in the U.S. increased in July. There are more than seven million job openings, but employers remain cautious. Hiring

activity remains muted in what's being called a low hire, low fire job market.

Fashion retailer Shein has made a lackluster debut on the Hong Kong stock market. Shares fell as much as 10 percent in early trading. The IPO values

Shein around $26 billion, far below the company's peak of nearly $100 billion just for years ago.

Anna Stewart is with us.

We're expecting this to be the great bonanza, aren't we?

ANNA STEWART, CNN CORRESPONDENT: Well, I think we're all very excited about Unitary, the robotics maker, which had a sort of 400 percent over

subscription. I think there's been some disappointment with this IPO, not least because actually Shein is listing here at a huge discount to where it

was just in 2022. Then it was valued in a private fundraising at around $100 billion. Now today, this listing valued it at just over $26 billion.

And despite that, despite that huge discount, shares fell 10 percent in the first few minutes of trade. They did recover through the day.

But there are a number of reasons why I think this ultra-fast fashion company has disappointed for many investors. First of all, of course, it's

been bitten rather hard by tariffs and taxation.

In the U.S., there was a tariff exemption for low-cost goods under $800. This really helped Shein's business model and it did extremely well in the

pandemic when people were locked down. People were very much influenced by what they saw in social media and Shein hauls were huge.

Now fast forward to this year, Donald Trump's administration has removed the tariff exemption. So suddenly revenue took a massive hit in the U.S.

E.U. has a similar story. They have introduced a new duty, a tax, it's a flat rate of three euros per good that you buy per category. So, for

instance, Max, say you bought a pair of board shorts and a pair of sunglasses and a pair of shoes from Shein, that would be nine euros. That

might be as much of one of those items that you bought, given it is ultra- fast, very, very low cost clothes.

There's competition from the likes of Temu, also from more traditional fast fashion companies like Inditex, Zara, Mango, even Primark, for instance,

doing better online. And then there's all of the regulatory probes.

Now, Shein is currently facing investigations in four different jurisdictions. It's already been fined by France. It's also being probed by

the U.S. I think there are a couple of different investigations, the E.U. and Ireland, for a number of things. They're being investigated for the

illegal sales, including childlike sex dolls and weapons. They are also looked into for addictive features, for fake discounting, for misleading

sustainability claims.

There's a lot, essentially, for investors to take on board. A lot of risk on the table, plus the fact that New York refused to-- well, there was a

big political backlash when they tried to list in New York, and then when they tried to list in London, it was actually the Chinese securities

regulator that decided they didn't any of this in the perspectives, and that is why it has listed in Hong Kong.

So quite a lot for investors to take on board with that listing today.

FOSTER: And fashionistas. Thank you, Anna.

Coming up, Tropical Storm Edouard making landfall, threatening the Texas and Louisiana coast with torrential rain and flooding. That's next.

(COMMERCIAL BREAK)

[15:46:46]

FOSTER: So, this just in, the jurors in the Lindsay Clancy trial have been dismissed without coming to a verdict. That means deliberations do enter a

fifth day tomorrow.

Meanwhile, heavy rain and gusty winds are lashing the Texas-Louisiana border. as Tropical Storm Edouard makes landfall. The storm's compact size

will limit its impact. The biggest threat is flooding rainfall in southeast Texas and southwest Louisiana. Sustained winds are at 50 miles per hour. A

level three or four risk of flooding has been issued through Tuesday night, includes the city of Houston.

Let's bring in CNN meteorologist Derek Van Dam, who joins us from the Weather Center in Atlanta -- Derek.

Max. So yeah, the storm just made landfall within the past 20 minutes or so. National Hurricane Center declaring that took place in Johnson's Bayou.

That is far southwestern Louisiana.

What you need to know for our international audiences that's right near the border of Louisiana and Texas on the northern Gulf Coast. So here it is now

losing its energy source, which was the bath like waters that we have across the northern portions of the Gulf water temperatures there

struggling or reaching roughly 30 to 31 degrees Celsius, roughly 88 degrees Fahrenheit. And that's like high octane fuel for a developing or

strengthening type tropical system.

And that's exactly what it did on its final approach as it reached land here in southwestern Louisiana. Just ran out of runway, right? So now no

longer with the warm bathwater helping fuel this storm strengthening. We start to see a degradation in the storm going forward, and in fact that's

what we anticipate, but in the days to come or in the hours to come, we do have very heavy rain in this forecast.

The winds not as much of a concern for this area. It will be the potential of localized flash flooding and I want to point out this area here just

east of Houston. You see those darker shades of red and oranges. Those are rainfall rates anywhere from two to three inches per hour. That's a lot of

rain.

By the way, when this made landfall, it was a tropical storm with 60 mile per hour winds. That's roughly 95 kilometers per hour, but there were gusts

over 100 kilometers per hour right along the coastline. Right now, as it stands, we're gusting to 47 mph in places like Beaumont, Texas, Lake

Charles, just shy of 30 miles an hour.

So, it's a -- it's a powerful storm. It's a small but compact but fierce storm that made landfall and really approached this area very quickly. We

were monitoring it over the past 36 hours or so, but again, the rainfall threat, that's what we're concerned about with this very compact tropical

system as it moves over land and that'll bring anywhere from three to six inches of rain locally higher amounts possible.

And this is a very low-lying part of the United States, so the potential here for localized flash flooding, certainly a potential here -- Max.

FOSTER: Okay, thoughts with them. Thank you, Derek.

Still to come, a stunning low-level flyby to wow the crowds.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Whoa! Whoa! Whoa.

(END VIDEO CLIP)

FOSTER: What was it? A dangerous stunt, leaving no margin for error. Judge yourself.

(COMMERCIAL BREAK)

[15:52:37]

FOSTER: Two planes flew just above the stadium full of rugby fans ahead of a match in South Africa on Monday. The viral moment has left some praising

it as a brilliant publicity move, but others have raised concerns about safety.

CNN's Pete Muntean reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It's so low. Whoa! Whoa! Whoa!

PETE MUNTEAN, AVIATION CORRESPONDENT (voice-over): It was a stunning stadium flyby over 56,000 people. Two jets from South African regional

airline Airlink only feet from the top of Cape Town's DHL Stadium. One of the empty 98-seat passenger planes low enough to fly through smoke from

fireworks launched from the roof.

Data from Flightradar24 shows the lead jet's lowest altitude reported at roughly 210 feet. The stadium is about 164 feet high, putting the jet maybe

only 46 feet above it.

Peter Goelz is the former managing director of the National Transportation Safety Board.

PETER GOELZ, FORMER MANAGING DIRECTOR OF THE NATIONAL TRANSPORTATION SAFETY BOARD: It is an unnecessary danger in part because it leaves No margin for

error. You got to fly it right. You can't have any mistakes.

MUNTEAN (voice-over): The airline celebrated the flyover in a post online, calling it spectacular. Airlink insists the flyby was carefully planned,

rehearsed, and approved by South Africa's Civil Aviation Authority.

GOELZ: This looks like a stunt planned by the P.R. department and signed off of inappropriately by the Civil Aviation Authority. It looks like the

P.R. people ruled the day. And that's not the way aviation safety ought to be run.

MUNTEAN (voice-over): And this wasn't a one-off. Airlink staged a similar formation flyby over Johannesburg's Ellis Park one week earlier, using the

same specially painted jets.

Low-flying airliners are part of South African rugby history. In 1995, a South African Airways 747 famously flew over the Rugby World Cup final, a

flyover featured in the film "Invictus".

And in 2024, an Emirates A380 flew over the same stadium, though a few hundred feet higher.

Saturday's flyover in Cape Town punctuates a summer of low flyovers.

[15:55:02]

In July, a pilot from the US Navy's Blue Angels flew low over the crown during the Pensacola Beach Air Show, sending tents flying and military

leaders scrambling to defend the maneuver.

A month before, a Boeing 777 on a test flight passed as low as 25 feet over a runway at Horseshoe Bay, Texas, triggering a federal investigation.

GOELZ: Now, fly by at 1,000 feet is already impressive and people enjoy it and there's no reason to lower it other than unnecessary risk-taking.

MUNTEAN (voice-over): Pete Muntean, CNN, Washington.

(END VIDEOTAPE)

FOSTER: What do you think?

I'm Max Foster. That's WHAT WE KNOW. Do stay with CNN. More after the break.

END

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