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Kamala Harris To Deliver Economic Policy Speech Friday; Trump Advisers Tout Chat With Musk, Other Allies Question Strategy; Sources: Ceasefire Talks Unlikely To Thwart Iran Strike On Israel. Aired 2- 2:30p ET

Aired August 13, 2024 - 14:00   ET

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

[14:00:30]

JESSICA DEAN, CNN CONGRESSIONAL CORRESPONDENT: Donald Trump takes his message to the masses in a conversation on X, but is that the message voters want to hear? We'll dissect what he said to Elon Musk about his campaign.

And President Joe Biden is back on the stage with his first official event since leaving the race, one that's very close to his heart.

And a positive update on inflation, as a key report shows it may be slowing. Wall Street is thrilled, but is it enough to calm fears on Main Street, especially as prices remain high, for a lot of things that Americans need.

BORIS SANCHEZ, CNN ANCHOR: And the battle for bronze. There is a huge fight brewing over Jordan Chiles' medal. A panel says she needs to return it. The debate over what happened may not end there. We're following these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

DEAN: In the next hour, democratic vice-presidential candidate Tim Walz will stump for the first time solo for the Harris-Walz ticket. He is going to be talking to one of the nation's largest unions of public employees. And it all comes one day after Donald Trump's one on one talk with one of the world's most famous and controversial CEOs, Elon Musk.

Musk claimed may have been a billion viewers of their two-hour audio only conversation, but it was delayed by 40 minutes by major technical glitches.

Today, the Trump campaign celebrating that chat, but sources say some of his allies aren't so sure.

We're going to start with CNN's Eva McKend, who's covering the Harris- Walz ticket. And Eva, Kamala Harris will be delivering her economic policy speech Friday. What are we expecting to hear from Walz just within the next hour?

EVA MCKEND, CNN NATIONAL POLITICS CORRESPONDENT: Jessica, I suspect we'll hear more of a preview of their economic pitch. just from listening to their argument on the campaign trail, its very worker focused and principally trained on bringing down costs for middle class families.

It will be interesting to see how much of the governor's policies from his work in Minnesota gets rolled into the Harris walls economic vision.

In Minnesota, for instance, there is free college tuition at public two or four-year colleges for families making under $80,000 a year. And a generous Child Tax Credit. You know, does that become part of their vision together.

On the campaign trail, we hear the vice president talk about her career as attorney general in California, going after price fixing schemes. And she is pledging to work to bring down prices.

She claims to be focused on big corporations that engage in illegal price gouging, corporate landlords that raise rents on working families and capping the cost of prescription drugs for all Americans.

A lot of these proposals, though, will require working in concert with Congress, and we're really waiting to get a more detailed argument from the campaign, beyond what they have said on the stump.

Now, as for the DNC, CNN has learned Hillary Clinton and President Biden will speak Monday night. Former President Barack Obama will address the convention Tuesday, and former President Bill Clinton slated to speak Wednesday. Jess?

DEAN: All right. Eva McKend with the latest for us. Thank you so much. And let's talk now with CNN Kristen Holmes, who is here. First, Kristen is following the Trump campaign.

What are you hearing from all the sources you always are talking to? What are they saying about this conversation with Elon Musk?

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Well, Donald Trump himself was thrilled about it. Apparently, he was talking to his team that was in the room with him as the technical glitch was going on, and saying that it was flattering that so many people were trying to get into the spaces that it shut down completely. And he was happy with the fact that it actually went on. He thought it was a good conversation.

And that was the same for his campaign advisers. One of the things we've been talking about, Jess, is the fact that they really are trying to reach people who are outside of your traditional voting block. That means people who don't engage with politics in the same way that others do, low propensity voters, people who are first time voters, people who could be persuaded to vote for Donald Trump, and those people might be watching an interview with Elon Musk more so than watching a news conference or a rally that he does. So, that's their argument.

When you talk to several allies, they don't really understand exactly what the strategy is here, particularly, as we've seen this surge with Kamala Harris in the polls, as well as enthusiasm, and part of that might be based on some of the stuff Donald Trump is saying.

Last night, he seemed even more focused on Joe Biden than he was on Kamala Harris. Take a listen to just one piece of what he said.

(BEGIN VIDEO CLIP)

[14:05:03]

ELON MUSK, CHIEF EXECUTIVE OFFICER, SPACEX, TESLA, AND TWITTER: Yes.

DONALD TRUMP (R), FORMER U.S. PRESIDENT AND 2024 PRESIDENTIAL CANDIDATE: This was a coup. This was a coup of a president of the United States. He didn't want to leave, and they said, we can do it the nice way.

MUSK: Yes.

TRUMP: Or we can do it the hard way.

MUSK: No. Yes. I'm -- they just took him out back behind the shed, and basically shot him.

(CROSSTALK)

TRUMP: Oh, what they did with this guy? And I'm no fan of his. And he was a horrible president, the worst president in history.

(END VIDEO CLIP)

HOLMES: Now, in addition to comments like this, he went after Kamala Harris. They spent a lot of time praising each other, going back and forth about how great each other was. Not necessarily a campaign. But each one person saying to me, we wish he would focus on policy. We believe that if he actually doubled down on things like immigration and the economy, he would be doing better in this race against Harris.

But again, this is a strategy, at least, part of a strategy his campaign team says is to work and try and get these outside the box voters. We're just not going to know if it's working until closer to November.

DEAN: All right. Kristen Holmes, the latest. Thanks so much. Boris.

SANCHEZ: Let's dig deeper now with Frank Luntz. He is a pollster and a communication strategist.

Frank, always great to have you on. I want to start with Donald Trump taking to act with Elon Musk. The campaign says they were seeking to engage these non-traditional voters, something that's been a focus for the Trump team, these first time or low propensity voters. How much do you think that demographic can make a difference in November?

FRANK LUNTZ, POLLSTER AND COMMUNICATION STRATEGIST: It's significant. It's what he did in 2016. It's what campaigns that have been successful over the last decade have done, bringing new people into the electoral pool.

It's difficult, because there's a reason why they haven't voted. Either they don't care or they don't like anybody, or they don't see that it impacts them in a personal way. I commend the Trump campaign. It's the candidate that's problematic. The candidate who can't stick to issues like inflation or immigration, can't stick to policies that the public supports, that instead, he has to deliver a attacks against a president who is not running against him.

What people think of Joe Biden has no impact on Kamala Harris, and it's actually damaging Trump's efforts right now, at a time when the nation is so evenly polarized, so hostile to each other.

So, yes, it is a very effective strategy and adding to the voter pool, and increasing the opportunity to win votes. But it's very ineffective when you're communicating to the public on things that they don't care about or even find offensive.

SANCHEZ: On the other side, I'm curious to get your perspective on Kamala Harris, laying out her policy vision when it comes to the economy later this week in North Carolina, something that has been a liability for the Biden administration. What do you think she needs to do to sway voters to her side on that issue?

LUNTZ: The key is, is affordability. It's not inflation. Inflation is what you and I say. Affordability is what the average American feels. And in the story, before setting this up, you communicated that it's of things that people care about. Housing and healthcare, which is very expensive, food and fuel, which is day to day items. And the public believes that the -- no matter what inflation is right now, they are looking at it over the last four years, and that's a dangerous situation for Harris. She wants to get ahead of it. So, it's smart for her to be doing it.

And in fact, she doesn't really have a choice. Now, that she is the candidate, she's going to have to draw a contrast, because the public does not believe that Joe Biden was affected on inflation, and they do give Trump credit in his administration for numbers that we haven't seen since he was president.

One last thing about inflation. Everyone feels it doesn't matter whether you're working paycheck to paycheck or whether you are middle class. Doesn't matter whether you're from Pennsylvania, Wisconsin, Michigan, Nevada, Arizona, the South, Georgia, North Carolina, because it's so universal, and it impacts everyone from whether they are 18 years old or 80 years old.

This is the key issue, because everyone feels it, and Harris has a way to go to show that her policies aren't going to make a tough situation even worse.

SANCHEZ: Well, Frank, from both big parties to a third party. There were two pieces that caught my eye recently on RFK Jr. There was USA today saying that his campaign is imploding, but he can still be an electoral problem for Trump. And then, the Washington Post essentially saying, RFK Jr is now hurting Donald Trump.

Do you think his campaign makes it to November, and who do you think he would draw voters from most? LUNTZ: Well, the question is, it's a great question, and it's an issue, what percentage does he get? Because for two percent, three percent of the electorate, the smallest percentage, he is actually drawing votes away from Donald Trump more than Harris.

[14:10:02]

However, when he was getting up to eight, 10, 12 percent of the vote, not more than 60 days ago, he was drawing more votes from Harris than he was from Trump.

In the end, he's got to get on the ballot. So, no matter what he's getting in national data, he is not on the ballot in almost all the swing states, so, he will be a non-factor.

Second, is that with Harris now in the race, the excitement, the energy, she has brought out brand new voters, younger women who were not participating in the election campaign, and they see something in her that they did not see in Trump. A lot of Bobby Kennedy's vote. The reason why Harris has gone up so much in the last three weeks is that she is basically sucked in the undecided and sucked in Bobby Kennedy's vote. And I expect him to be more damaging to Trump in the end than to Vice President Harris.

SANCHEZ: That is fascinating. Frank, I also want to get your perspective on the idea of a post-convention bump and how this sort of unprecedented streak of news that we've had over the last month and a half or so might have changed that.

There are folks out there who have argued that for Republicans, that post-convention bump came early because of the attempt on former President Trump's life, and that for Democrats, the DNC bump came early because Kamala Harris was announced essentially as the effective nominee for the Democratic Party.

Do you believe that that bump still occurs the way that it used to historically, and whether it's been sort of truncated or advanced by the way that we've seen the news cycle develop?

LUNTZ: It's a fair question, but I'm not going to duck it. I'm going to try to adjust it. Because what really matters is that debate on September 10th. When you see both candidate, side by side, and they both are answering the same questions at the same time, and challenging each other. Whether she gets no bump or two points, whether it was before or after the convention, in the end, it is that side by side comparison that's going to make the entire difference in this campaign.

And the question is, is the Harris message stronger than the Trump message? And I will tell you this, if it's just about policies, just about issues, Trump has the advantage. If it's about candidate traits and attributes and who the people are, Harris has the advantage.

So, both sides have a strength, both sides have a weakness, and frankly, it's just simply too close to call.

SANCHEZ: Frank Luntz, always great to get your perspective on things. Thanks for joining us.

LUNTZ: Appreciate. Thank you.

SANCHEZ: Of course.

Still to come, Israel bracing for potential strikes from Iran, as high stakes Gaza peace talks are set to resume in just days. We have a live report for you from Tel Aviv in just moments.

Plus, new numbers out today showing the high cost from inflation may be cooling off. What that means for your wallet?

And crews near Athens, Greece, battling a fast-moving wildfire, forcing even more people to evacuate. The latest on efforts to contain the flames as CNN NEWS CENTRAL continues.

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[14:17:51]

SANCHEZ: Tensions in the Middle East are running high right now as talks are set to resume Thursday on a potential cease fire deal for Gaza.

Moments ago, the state department said Qatar is working to ensure that Hamas actually shows up for those critical negotiations in Doha. But we're told that Iran, a key player, is not expected to be there. And sources say this week's meetings are unlikely to fend off its expected retaliation against Israel for two high profile assassinations.

Let's take you now live to Tel Aviv with CNN's Nic Robertson. Nic, what more do we know about the status of these ceasefire talks?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, I think the expectation where the bars being said about what could happen this week, best-case, worst-case scenarios, the fact that -- the fact that our understanding is that Iran could still strike, whatever the outcome of the talks, I think that was already sort of baked into the calculation. The question is based on the outcome of the talks, or even anything that the talks even get underway, based on that happening, does Iran go for a big strike or a lesser strike that doesn't involve Israel retaliating, and then getting an escalatory situation? So, that's the question there.

As to Iran being at the talks, I don't think that was ever really expected, because they have never been part of the Gaza negotiations. This is something where there are mediators, you know, Qatar, the Egyptians, the United States working on it as well, bring -- trying to work in between Israel and Hamas. So, Iran's never had a place at that table. Their stake in this is the potential of the outcome.

What we understand about Hamas is participation, of course, their former top negotiator, Ismail Haniyeh, assassinated by Israel in Tehran almost two weeks ago now. He was based in Qatar. Hamas now will continue to have and will have a representative in Qatar, I understand from sources, on Thursday. But whether or not that Representative gets involved with the mediators after they have met with Israel depends on the conditions that Hamas is setting.

[14:20:09]

They have said very clearly that these talks on Thursday must revolve around the framework that President Biden set out in May and then -- and then, sort of reached a conclusion in July.

Hamas's position is that Prime Minister Benjamin Netanyahu keeps making add-ons to that framework. And those add-ons, a key issues, and Hamas will not engage, they say, if Israel comes to these talks and tries to put more add-ons on that original framework.

So, where are we? Bottom line, the potential for getting to the talks is still there, but sources that we're talking to in the region say it is difficult. It is tough. One of them told me had never seen pressure such as -- is being applied now to sides as before. This is -- this is a first for him.

SANCHEZ: Nic Robertson, live in Tel Aviv for us. Thank you so much, Nic. Jessica?

DEAN: And let's talk about the current situation more in the Middle East. Joining us now, CNN global affairs analyst and defense secretary under President Trump Mark Esper. Secretary Esper also serves on the board and as a strategic adviser for a handful of aerospace and defense related companies.

Always great to see you, Secretary Esper. Thanks for being here, as we're in this kind of wait and see time.

MARK ESPER, CNN GLOBAL AFFAIRS ANALYST: (INAUDIBLE).

DEAN: Yes, as we're in this wait and see time to see what unfolds. We know that the U.S. and Israeli intelligence expect an Iranian attack, what they say, imminently. Back in April, it took about two weeks for Tehran to hit back in that episode. We're about at that point now. Do you see this happening in the next, let's say, 48 hours between now and when those cease fire talks are supposed to begin on Thursday?

ESPER: At this point, Jessica, I think it depends on what happens with the talks. If they happen and they are ongoing, that they're somewhat productive. Both sides are engaged, and I think Iran holds off, and that is what they apparently are telling people right now, is that their action depends on the progress, the talks, and if the talks continue to move forward.

I think, you know, they are using this leverage this time for a couple reasons. One is they can get -- maybe get a good deal out of a U.S. administration that wants it, others that want it. But also, they don't want -- Iran does not want a major regional conflict. And at this point in time, if they retaliate in the way that they probably need to, with more force, and what they demonstrated in April, where they had 300 plus missiles and drones, then a risk a wider regional war that neither Tehran nor Hezbollah, for that matter, wants.

So, I think they're trying to apply this leverage in a way that would conclude a ceasefire that would benefit Hamas. And so, we'll wait and see how this plays out over the next 48 to 72 hours.

DEAN: Absolutely. And in the meantime, the U.S. has ordered this guided missile submarine to the Middle East and accelerated the arrival of the carrier strike group in anticipation of any attack.

Knowing your background, what does this tell you that this type of asset, specifically that submarine, is being deployed and that it's also being talked about publicly?

ESPER: Well, the administration, publicly and privately, has been signaling to Tehran -- through proxies to Tehran, to deescalate, to not respond, not to retaliate. They've been doing this to Hezbollah as well. And there was a lot of prudence in terms of moving the additional ships, destroyers that can shoot down missiles and drones into the region to support Israel. But the movement of the guided missile submarines, which is not a defensive capability, but an offensive one, signals that if Israel, I'm sorry, if Iran, takes action or Hezbollah, we're prepared to strike with over 150 Tomahawk land attack missiles at targets either within Hezbollah or Iran for that matter, to take out launchers, to do whatever they need to defend, help Israel defend itself.

So, it's a deterrent gesture to signal strength and support for Israel.

DEAN: Yes, and you mentioned the talks and how they may be playing into all of this, and especially the timeline. It's worth noting, this will be the first major meeting with Sinwar, heading up Hamas's political wing after Haniyeh's assassination. I'm curious if you think that that will change the dynamic at all.

ESPER: Well, it certainly cuts out the middle man, which used to be Ismail Haniyeh, who was killed late last month. He was the political leader. He was considered more moderate than Yahya Sinwar. So, now, Sinwar wears two hats. He's the head of Gaza. He is the architect behind the October 7th attack on Israel, and now, he's also the political leader. So, I think it's -- he's a more hardline than members of Hamas outside Gaza.

The other thing too is his demands. I think, frankly, are unreasonable for the Israelis.

[14:25:01]

So, you know, he wants, basically, for the Israelis to leave, allow him to remain in control, keep the southern border open, so that he can rearm and refit, and then, allow them to govern in Gaza, basically.

So, I still see a big gap here between what Israel wants, and not just Netanyahu, but I think, you know, a majority of Israelis and what Sinwar and Hamas wants. And so, we'll see. Maybe they can narrow the differences. But it seems like there is still a big gap between the two.

DEAN: Yes. And so, as you lay it out like that, how do you bridge that gap? You -- obviously, they are making a huge effort to try to do that, especially the U.S. representatives that are going to be over there. We're sending, you know, everyone we can, to try to get this done. But how do you get there? It's that -- it's almost, you know, Tony Blinken said there on the 10-yard line a couple months ago, but it's almost any knowledge that last 10 yards could be the hardest.

ESPER: Yes. I mean, it's both sides are in a situation that Bibi Netanyahu is getting pressure from the Israeli people to do two things: return the hostages, of which there is at least 70 or so living, and maybe three dozen or so not, who have been killed. And at the same time, destroy Hamas, not allow -- don't allow Hamas to come back into power and repeat what they did on October 7th as they promised.

On the other hand, Yahya Sinwar who is leading what's left of Hamas is one to fight to the last innocent civilian, which is a tragic situation for the Palestinian people, innocent civilians who don't support Hamas, who are trapped there. And so, he clearly has no regard for his people. So, it's -- again, both are fighting for strategic aims, and nobody wants to see this repeat.

And Netanyahu's view has been, the more military pressure we can put on them, the more -- the more likely we are to bring Sinwar to the table.

Also, Jessica, you know, there were three leaders that -- at least, three leaders that Israel has been targeting now for a matter of months. Two of them are now dead. Mohammed Deif, who was killed a month or so ago in Gaza and Ismael Haniyeh, who was killed in late July.

The only remaining leader -- big leader they want is Yahya Sinwar. So, you know, he is a hunted man right now and probably forever will be. But again, he's the one leading Hamas at this point, and is willing to keep fighting until he gets what he wants.

DEAN: Meantime, the hostages are still being held in Gaza. Hostage families are criticizing Israel's far-right National Security Minister Ben-Gvir, for visiting the Al-Aqsa compound today. It's being viewed as a provocation by Muslims around the region by Hamas. Is this sort of thing helpful at such a delicate time when they are trying to get a ceasefire and a hostage deal? Obviously, Ben-Gvir has his own thoughts about that.

ESPER: Yes, you know, it's hard to get a read of all that's happening within Israel. But when you look at things like that -- you know, the West Bank is brewing as well. Right? There is -- there is been conflict there, Palestinians killed in the West Bank, we still have Hezbollah, we still have the Houthis, we have the Shia militia groups in Iraq, and so, the whole region is boiling.

And so, you got to be careful about any moves that might kind of escalate into something bigger and really focus on the task at hand. DEAN: Yes, any small move can have a big impact when it's -- when the tensions are the way they are right now.

Secretary Mark Esper, great to see you. Thanks so much.

ESPER: Thanks, Jessica.

DEAN: Coming up, a key inflation report is out. It is cooler than expected, and what that's going to tell us about the state of the economy and how it's impacting the prices you pay.

Plus, USA Gymnastics not giving up the fight after losing an appeal over Jordan Chiles' Olympics -- Olympic bronze medal. We'll have the latest developments on that story ahead.

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