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Dow Falls by More than 600 Points as markets Fear They Might Not See a Summer Rate Cut; DOJ Sues to Break Up Concert Giant Live Nation-Ticketmaster; Feds Reach $310 Million Settlement with Norfolk Southern; Chiefs Quarterback Patrick Mahomes Defends Teammate Harrison Butker. Aired 3:30-4p ET

Aired May 23, 2024 - 15:30   ET

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

[15:30:00]

BRIANNA KEILAR, CNN HOST: All right, we're following some breaking news there. You see that number down 600 points. We are watching the Dow right now. It's really tumbling.

BORIS SANCHEZ, CNN HOST: Yes, CNN's Matt Egan joins us now. He's been watching the markets. Matt, how much of this has to do with fretting about a potential rate cut?

MATT EGAN, REPORTER: Well, of course, Brianna, that's right. But it really is all about concerns about what the Fed is going to do next. What's interesting here is that it was just six days ago that the Dow closed above 40,000 for the first time ever.

Now you can see it's much closer to 39,000. But the mood can change very quickly on Wall Street, and we are, of course, seeing that play out today. You know, not that long ago, there were a lot of people on Wall Street who thought the Fed was going to be able to cut interest rates as many as six times this year because there were all these hopes that inflation was going to be moving right back to 2 percent.

Of course, inflation has proven to be a lot more stubborn than people had anticipated. And the jobs market and the economy at large has been more resilient than anticipated. And so now there are these growing concerns that maybe the Fed won't be able to lower interest rates this summer, maybe not even in the fall. And that is raising some worry among investors.

One of the triggers here were minutes that were released just yesterday from the most recent Fed meeting, and it showed that some officials remained worried about inflation and some of them even left open the possibility that they could have to raise interest rates. Now, that is not the consensus at this point, but just the fact that Fed officials were talking about that was enough to spook investors.

And so we are seeing the Dow down 600 points, about one and a half percent with 29 minutes left in trading. U.S. stocks are basically at the lows of the day -- Boris and Brianna.

SANCHEZ: Yes, Matt, it's climbed back up about five, six points since you started your hit. I attribute that solely to you. Matt Egan, thanks so much for the report.

KEILAR: It's all Matt.

EGAN: Thanks, Boris.

SANCHEZ: It's all Matt.

So you've likely experienced it, sky-high ticket prices and then those extra nebulous fees. Now, the Justice Department is doing something about it, along with dozens of states. The DOJ is suing Live Nation, the company that owns Ticketmaster.

KEILAR: This is an antitrust lawsuit that accuses Live Nation of abusing its monopoly power over live events in the U.S. and driving up ticket prices. CNN senior crime and justice reporter Katelyn Polantz is following this story for us. And we've been awaiting this, I think. But tell us what you're learning here. Since the era of Taylor Swift's tour last summer, right?

KATELYN POLANTZ, CNN SENIOR CRIME AND JUSTICE REPORTER: Since the era of Taylor Swift's tour last summer, right?

KEILAR: That's right.

POLANTZ: Everyone was so angry when they couldn't get tickets because of glitches in the system. This is about more than consumers.

That was the message from the Justice Department this morning. Attorney General Merrick Garland spoke extensively about the service fees that consumers do pay when they buy tickets through Ticketmaster, the largest seller of tickets through Live Nation venues. That's their parent company in the country.

But they also, the Justice Department also takes issue with how artists and venues are locked into their system. They believe that the company retaliates against concert venues that work with their rivals. They have contracts that make things problematic.

But General Garland did talk quite a lot about the fees associated with tickets, even in a personal sense. He talked about a concert he went to long ago, Bruce Springsteen and Bonnie Raitt. Here's a little bit more from General Garland.

(BEGIN VIDEO CLIP)

MERRICK GARLAND, ATTORNEY GENERAL: With exclusive agreements that cover more than 70 percent of concert ticket sales at major concert venues across the country, Ticketmaster can impose a seemingly endless list of fees on fans. Those include ticketing fees, service fees, convenience fees, platinum fees, Price Master fees, per order fees, handling fees and payment processing fees, among others.

(END VIDEO CLIP)

POLANTZ: A senior Justice Department official also told us that with this lawsuit, they're filing it in Manhattan's federal court. They want a jury to look at it for it to go to trial and that a breakup of Live Nation, Ticketmaster having control over these concert ticket sales, that is something that is on the table here.

[15:05:00]

SANCHEZ: How is Live Nation responding?

POLANTZ: Well, they have put out a lot of information. They say that the Justice Department has ignored the data. This wouldn't ultimately lower concert fees for people who are buying tickets.

And they also say that other things contribute to these service fees that stack up. Production costs that get higher and higher, artist popularity, online scalping, ubiquitous, something that they have been very proud to say previously that they have defended, cutting that out by controlling the resale of tickets as well. Their final quote, they talk about the merger between the two companies, Live Nation, the concert promoter, and Ticketmaster, the ticket sales company. Back in 2010, the Obama administration approved it.

They say the world is a better place because of that merger, not a worse one. And they are ready to go to trial. They're getting the lawyers lined up to fight the Justice Department on this.

KEILAR: It's so interesting. But just as a consumer, you think you're looking at one kind of price. And then by the time all those fees get added on, what looked like a reasonable, you know, concert ticket price is no longer for sure.

Katelyn, thanks so much. We'll keep an eye on this with you.

And ahead, the new settlement between the Feds and Norfolk Southern, more than a year after this train derailment here, put tons of hazardous materials into one Ohio town's air, water and soil.

[15:10:00]

(COMMERCIAL BREAK)

KEILAR: The U.S. has reached a $310 million settlement with Norfolk Southern. That's a company who had that train derailment that spilled more than a million pounds of toxic chemicals into the town of East Palestine, Ohio back in February of last year.

SANCHEZ: CNN's Jason Carroll joins us live with more details. So Jason, what exactly is in this settlement?

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Yes, well, you know, the settlement, first of all, is according to federal authorities, this is just for them another step to make sure that the people of East Palestine are taken care of and that Norfolk Southern continues to foot the cost of any cleanup that may come up in the future.

So what happened was the DOJ filed a lawsuit on behalf of the EPA and this $310 million settlement is the result of all that. And here's part of what it entails.

$235 million for past and future cleanup costs. $25 million to establish a community health program. That's so that folks there in East Palestine in that affected area can go and have their health checked for a period of up to 20 years.

$15 million for long-term water monitoring. That includes groundwater and surface water. Checking up on that for a period of 10 years in addition to paying $15 million for violations of the Clean Waters Act.

Now, Norfolk Southern, for its part, its CEO, Alan Shaw, saying the following in a statement saying: We are pleased we were able to reach a timely resolution of these investigations that recognizes our comprehensive response to the community's needs and our mission to be the gold standard of safety in the rail industry.

And just to give you an example of how important monitoring is, it was just last month that the EPA out there checking some of the water that goes through East Palestine found a number of deceased fish in the area, which just goes to show you the importance of the need to have increased testing there, increased monitoring of the waterways.

We should also tell you that in addition to this lawsuit, in a separate lawsuit, Norfolk Southern agreed to pay $600 million in a settlement that would resolve many of the lawsuits there from residents and businesses in the affected area.

But I also have to tell you after, you know, just going through and texting some folks out there, including one businessman who has a warehouse right next to the site of the derailment, he says he's not going to be part of any of these lawsuits. He does not still trust the government here, does not trust Norfolk Southern. So there are folks out there still pursuing their own lawsuits -- guys, back to you.

SANCHEZ: Wow, Jason Carroll, thanks so much.

Still ahead, Super Bowl champ Patrick Mahomes is weighing in on his teammate Harrison Butker's controversial commencement address. Up next, what the quarterback and the NFL commissioner are saying about it. Stay with us.

[15:15:00]

(COMMERCIAL BREAK)

SANCHEZ: One of the biggest stars in the NFL, quarterback Patrick Mahomes, now playing defense for his teammate, kicker Harrison Butker. Butker's been in the spotlight over a controversial commencement speech, one where he said that a woman's accomplishments in the home are more valuable than any academic or professional goals. He also called Pride Month a deadly sin, among other things.

Still, Mahomes is standing by his kicker.

(BEGIN VIDEO CLIP) PATRICK MAHOMES, KANSAS CITY CHIEFS QUARTERBACK: I judge him by the character that he shows every single day, and that's a good person. That's someone who cares about the people around him, cares about his family, and wants to make a good impact in society. When you're in the locker room, there's a lot of people from a lot of different areas of life, and they have a lot of different views on everything.

And we're not always going to agree. And there's certain things that he said that I don't necessarily agree with, but I understand the person that he is.

(END VIDEO CLIP)

KEILAR: Chiefs coach Andy Reid also defended Butker, saying that he didn't think he was speaking ill to women. He went on to say Butker has his opinions, and we all respect that.

CNN sports analyst Christine Brennan is with us now on this story. You know, the one person that can, Christine, put this whole controversy to bed is Harrison Butker. I mean, maybe he can. He did not speak to the media yesterday. What did you think about that, and should the Chiefs send him out to talk to people?

CHRISTINE BRENNAN, CNN SPORTS ANALYST: Well, I think so, Brianna. I mean, the comments were not just normal comments. You know, when we hear, well, someone's got an opinion, I respect their opinion.

No, this is a man who said women are being told diabolical lies, and basically told women to not have careers and to stay home and have children.

[15:20:02]

Which means you and I would not be doing what we're doing right now, and nor would millions and millions of American women and women around the world. That is an incendiary comment. That's not your normal graduation speech, and that is worthy of our attention, especially a league, the NFL. We saw with the Swifties, we saw with Taylor Swift. By the way, I can't wait to hear from the Swifties on all of this. They may take care of it themselves. But the NFL cares so much about women. About 45 percent of the fan base of the NFL, Brianna, is female.

They even have flag football that they're promoting for girls in high school to keep girls and women interested in the NFL. So that piece of this conversation, we're really not looking at how that impacts this because this is a terrible look. If you are trying to attract women and girls to your game, to be fans, to be players of flag football, and to be there for the next 30, 40, 50 years, the fan base of the NFL desperately needs.

SANCHEZ: Yes, it could be a big issue for the league as it tries to complete that outreach. Following his speech, Butker, he had the number one selling Chiefs jersey, at one point even selling out a women's version of that jersey. Do you think Goodell, Reid, and Mahomes are sort of permitting him using this language, being less critical than I guess they could be because they're reading the room and they're seeing what the audience for his speech is saying with their wallets?

BRENNAN: Boris, as we know, Michael Jordan said Republicans buy sneakers too. And there certainly is an element of that. And that makes sense, right? I mean, there are views all over the place. I guess the difference here is that he was so forceful. And when you give a commencement speech, and I've been honored to give a few, the idea is to uplift and to encourage and not diminish, as he did, the women in the room and their goals and their hopes and their dreams.

So, you know, that's exactly what's happening. And to Patrick Mahomes' credit and any other teammates he has, they want to keep the locker room chemistry together. If you had Patrick Mahomes come out and say maybe what he wanted to say, his wife Brittany, very accomplished, they're in business together. There's a lot more going on with Mahomes' family than having kids, which by the way, it's wonderful if you want to have kids and be a mom, of course.

But I think Patrick Mahomes probably realized if he had come out strongly against his teammate, that would have sent a signal through the locker room that may have been very difficult, not only for right now in the springtime, but heading into the fall as well.

KEILAR: Yes, what did you think? Because it is sort of a change from what Goodell said last week about this not reflecting the views of the NFL.

So what do you think about kind of the adjustment and just how they're trying to figure out exactly where, like, the center of gravity is on these culture war kind of things?

BRENNAN: Brianna, absolutely. You know, a league is a business. They want to sell a product. They care very much. But this is the same league that realized the power of Taylor Swift and women and girls and empowering those young kids, those young women and girls, and, of course, older women as well to come and watch the NFL. They saw the NFL, you would have thought, would be the only league that didn't need any more help to have more viewers and TV ratings. And it did. And it was Taylor Swift, a woman, a strong woman, complete opposite of the caricature or the model, so to speak, that Harrison Butker wants for a woman. I mean, you couldn't have someone further than that away from that than Taylor Swift.

So I think they're trying to play both sides against the middle. But at the end of the day, I think it's a controversy to stick with this team and with Butker for a very long time.

KEILAR: All right. I think you may be right about that. Christine Brennan, as you usually are, I will say thank you so much for being with us. We're going to be right back.

[15:25:00]

(COMMERCIAL BREAK)

KEILAR: All right Boris, so we're finally hanging out again.

SANCHEZ: It's been a minute.

KEILAR: After a busy couple of weeks where we've been doing some stuff. You've mostly been doing the stuff.

SANCHEZ: Well, you took like a whirlwind trip to the Middle East and came back in like record time.

KEILAR: Yes, but Boris has been on assignment and part of it has involved swimming. More on that to come. It's very cool, but I don't want to spoil it.

SANCHEZ: We can't.

KEILAR: And also, you recently spoke at your alma mater, Syracuse University.

SANCHEZ: I did.

KEILAR: And we want to play a small portion of the speech.

(BEGIN VIDEOTAPE)

SANCHEZ: See, I always knew that I wanted to be a journalist. Ever since I was a little kid. I was inspired in part by my mom. As a child in Cuba, she had a passion for writing. And she aspired to one day be a journalist and write for a newspaper. But of course, communism.

She was forced into menial labor and that dream was deferred. Authoritarians don't like a free press or people expressing themselves freely. Case in point, my grandfather was sentenced to 20 years in prison. Simply for trying to speak the truth about a brutal dictator. Who executed thousands of his people for their beliefs. And 25 years after deciding that I wanted to be a journalist. After hearing my grandfather's story. Incarcerated and tortured for questioning power.

I had the opportunity to walk into the White House as a correspondent. With the most powerful person in the world standing in front of me. Pointing at me. Inviting me to question him. The very thing that cost my abuelo so much of his life.

In no other country in the world would my story even be possible. Because the alchemy offered by this soil is unrivaled.

[16:00:00]

All of the information and creativity, technology. The produce and people and things that we have access to. A potential that seems limitless. And I see the strength of it in this room right now in you.

(END VIDEOTAPE)

SANCHEZ (on camera): I do appreciate you guys playing the speech. But I have to say, you all played the most somber and serious. There were a lot of jokes. I spent so much time writing jokes. KEILAR: It's pretty cool. But you have some of that online.

SANCHEZ: Yes.

KEILAR: Which you can check out.

SANCHEZ: Check it out on Instagram.

KEILAR: What a meaningful message. It gave me chills.

SANCHEZ: Yes, absolutely. It's important to remind students that they can mess up a lot. And still find their way. Go Orange.

KEILAR: Go Orange.

SANCHEZ: "THE LEAD" with Jake Tapper starts right now.