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CIA Shadow War in Mexico?; Alex Murdaugh Murder Convictions Overturned; President Trump in China; Inflation Surging. Aired 1-1:30p ET

Aired May 13, 2026 - 13:00   ET

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

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT: And they noted it was, in their opinion, outside the knowledge of the outstanding trial judge and, -- quote -- "superbly competent and professional counsel" for the state and Murdaugh.

[13:00:06]

Now, you may remember there was an evidentiary hearing before, where they determined that she made some improper comments like "Watch his body language," but did not influence the verdict. The high court does not agree with that and said that it did and therefore violated Alex Murdaugh's constitutional right to a fair trial.

We will see what as soon as possible means for getting this together. It, of course, would be very expensive and potentially difficult to find a venue in South Carolina.

DANA BASH, CNN HOST: Yes, this is a really big deal.

Thank you so much for bringing it to us, especially the politics.

Thank you for joining INSIDE POLITICS today.

"CNN NEWS CENTRAL" starts right now.

BORIS SANCHEZ, CNN HOST: Paying the price. New inflation numbers showing that costs for businesses are surging, and those higher prices may soon head to consumers, the war with Iran now hitting Americans' wallets harder than ever.

Plus: trade, tech and Taiwan, no shortage of topics for President Trump as he touches down in Beijing for meetings with President Xi Jinping, the economic cost of the war with Iran casting a shadow over that summit.

And a shadow war in Mexico. Exclusive CNN reporting reveals how the CIA has been conducting secret and deadly operations against drug cartels in that country, a high-risk strategy for the agency.

We're following these major developing stories and many more all coming in right here to CNN NEWS CENTRAL.

We start this afternoon with ugly inflation numbers for the second day in a row, the war with Iran pushing wholesale prices higher at the fastest rate in four years. New data out today shows wholesale inflation surged to 6 percent in April compared to last year, inflamed by higher gas prices.

The International Energy Agency says that the world's oil reserves are rapidly shrinking, setting the stage for further price spikes. And Americans are paying dearly for gasoline, the average price for a gallon of regular now $4.51, says AAA. That has climbed 50 cents a gallon in just the last two weeks.

Food prices are also jumping and airfares are up more than 20 percent just ahead of the busy summer travel season.

Let's discuss with Rick Newman. He's the business columnist and founder of Pinpoint Press.

Rick, thank you so much for being with us.

So, at 15.6 percent, the increase in gas prices accounted for 40 percent of the increase in costs paid by businesses last month. Does that tell you that these high energy prices are eventually going to spread downstream?

RICK NEWMAN, BUSINESS COLUMNIST AND PUBLISHER, THE PINPOINT PRESS: That's exactly what's happening.

So, everybody knows what's happening with gasoline prices because those are the prices advertised in foot-high or two-foot-high numbers on every filling station in America. But this is now creeping much deeper into the supply chain, because energy is an important input into the production of a lot of stuff.

So, when your input prices go up, your costs go up, and that ultimately gets passed on to consumers. I saw one report today. This surprised me, that the price of tomatoes is up 40 percent year over year. And that's because the cost of producing them, sowing the seeds, harvesting the tomatoes, that's all going up because of cost of -- and we should keep in mind, a lot of times, this is diesel fuel, not gasoline.

And that's up by even more than gasoline. So these costs are just going to come at everybody like a tidal wave during the next several months.

SANCHEZ: So, as go energy prices, thus goes inflation, right? And we just got new numbers yesterday showing that, for the first time in three years, the rate of inflation is now outpacing wage growth.

I remember, back then, in the Biden post-COVID era, there was talk of inflation being transitory. Now we're hearing from Republicans that this is just -- that this is just a blip, that this economic pain is a phase. What's the difference between now and then, based on the inflation that you're seeing?

NEWMAN: Well, if you go -- so, the inflation peaked in 2022 under Biden, and it got worse than it is now. It got as high as 9 percent year over year. And that was basically because -- also because of an energy shock.

That had a lot to do with it. That was Russia's invasion of Ukraine, and there were some other things going on. That did pass. I mean, when you use the word transitory or temporary, let's say, how long, how many years or months counts as temporary or transitory?

I think it was a lot longer than anybody wanted. But by the time President Trump came into office in 2025, it was transitory. Inflation was well below 3 percent. It got as low as 2.3 percent around this time last year. And 2 percent inflation is normal. That's the target.

[13:05:04]

So what should be happening right now is, we should not even be talking about inflation. There should be no -- this should be a nonissue. But two things have happened. And they go right back to Donald Trump's policies.

Number one, starting about a year ago, he started imposing tariffs on imports, and inflation went back up a little bit. And then the Iran war, now we have inflation going higher. The overall inflation rate is probably going to easily go over 4 percent in the next month or two. And it could go as high as 5 percent.

And we could see gasoline prices close to $5 a gallon. And how long this lasts depends entirely on when this standoff with Iran ends.

SANCHEZ: Do you see any kind of hangover or a period of time between the Strait of Hormuz magically reopening in the next few days and gas prices going down for American consumers and therefore the price of everything starting to creep down again?

NEWMAN: I think the lag time is three to four months. So, from the moment that traffic starts to get back to normal through the Strait of Hormuz and some of these other work-arounds that are under way now start to have an effect on markets, I think you will see prices coming back down.

And, by the way, one of the things you are seeing in the stock market, I mean, one of the reasons where we keep hitting new record highs in the stock market is, yes, there are other things going on with the A.I. boom, but the market is looking past the Iran war and it still is pricing in an eventual return to more normal oil prices.

But whoever -- who has that magic wand, Boris? I mean, somebody needs to wave that magic wand today. And, obviously, this is not that easy, or else Trump would have done it. He's in a pickle with gas prices where they are. And Republicans obviously are sweating.

So, if we can get traffic through the -- flowing through the Strait of Hormuz, give it three to four months, and we will be back to normal. The sooner that happens, the better.

SANCHEZ: Rick Newman, appreciate your perspective. Thanks so much for joining us.

NEWMAN: Thanks.

SANCHEZ: The cost of this war obviously hanging over the president's critical summit in Beijing.

And, earlier, China rolled out the red carpet for President Trump as he arrived for talks with Chinese leader Xi Jinping, China of course, by far the largest buyer of Iran's oil. And we're now learning that President Trump in the next 48 hours is expected to encourage Xi to push Iran to reopen the Strait of Hormuz.

Let's go live to Beijing with CNN's Mike Valerio.

Mike, obviously, a lot at stake for this trip.

MIKE VALERIO, CNN CORRESPONDENT: I think it's extremely consequential, really resetting the relationship, or at least that's what American officials are telling us at this very late hour in the middle of the night here in Beijing, Boris.

So, what's important for everybody back home in America to know, deals and getting help with the war in Iran are far and away the two biggest topics that the president is going to raise with his meeting with Chinese leader Xi Jinping.

So let's take you through the agenda for tomorrow, the time difference, 12 hours between us and the Eastern Seaboard. So, 8:00 a.m. is when the huddle happens with Trump and his top officials, 10:00 a.m., 10:00 p.m. Eastern Seaboard Time, is when the president goes to the Great Hall of the People.

Think of that, in the center of Beijing, sort of China's version of the United States Capitol, this huge edifice meant to project confidence and the permanence of the communist state built in the era of Mao in 1959. Then he goes to a state dinner later on in the evening, a state banquet, at 6:00 p.m. local time.

But in terms of asking for help from China to reopen the Strait of Hormuz, we went up and down throughout town in Beijing, Boris, most of the day yesterday. And I was so struck by so many who told us they do not want China getting involved at all in this U.S.-Israel war.

Let's listen to what they said. We will come back and talk about it on the other side.

(BEGIN VIDEO CLIP)

MS. YUAN, BEIJING RESIDENT (through translator): I don't think China should interfere too much in those kinds of issues.

MR. LI, BEIJING RESIDENT (through translator): China's diplomatic principle has always been noninterference, so it won't do anything. It only calls for something, not take concrete actions or specific measures.

MR. LIU, BEIJING RESIDENT (through translator): I don't have a good impression of President Trump at all. The U.S.-Iran conflict was stirred up by him too. I just think this guy, look at the trade and economic war before. Wasn't that him too?

(END VIDEO CLIP)

VALERIO: So, in terms of what both sides want, let's get to the other agenda in terms of the remaining items.

So, we talked about the war in Iran at the top. Taiwan and arms sales. If China does marshal help to reopen the Strait of Hormuz, analysts are telling us that potentially China could ask for a concession when it comes to Taiwan.

China definitely wants a change in position with the United States to oppose potential Taiwanese independence, rather than the current position, which is do not support. China also wants access to chips for artificial intelligence that have greater capabilities than their own chips made throughout China. So that's certainly high on the agenda.

[13:10:05]

And trade. I think people need to know, Boris, back home that a lot of these tariffs -- even though the Supreme Court knocked so many of them out in February, a lot of the tariffs are still in effect from the first Trump administration and from the Biden administration.

So China wants those out of the picture. A lot going on between now and Friday afternoon here in China.

SANCHEZ: Yes, plenty for the two leaders to discuss.

Mike Valerio, thank you so much for laying that out for us.

Still to come, a CNN exclusive on the CIA's secret deadly war on cartels inside Mexico. We have details on their operations ahead.

Plus, a trial that captured national attention, and now the South Carolina Supreme Court had overturned Alex Murdaugh's murder convictions. What comes next in a high-profile case?

And, later, a Republican's message for Americans on edge over these soaring gas prices: Just relax. Everybody, relax.

We will discuss next on CNN NEWS CENTRAL.

(COMMERCIAL BREAK)

[13:15:23]

SANCHEZ: We're following a stunning development in a case that made headlines nationwide, the South Carolina Supreme Court overturning Alex Murdaugh's murder convictions, ordering a new trial.

The court today sided with Murdaugh's defense attorneys, who argued that jurors were tainted by improper comments made by former County Clerk Becky Hill. The justices writing in their unanimous ruling -- quote -- "Although

we are aware of the time, money, and effort expended for this lengthy trial, we have no choice but to reverse the denial of Murdaugh's motion for a new trial due to Hill's improper external influences on the jury and remand for a new trial."

The ruling is the latest twist in the sprawling legal saga that has spawned a limited series, two crime documentaries, podcasts, books, all sorts of media.

Let's discuss with prosecutor turned defense attorney Joey Jackson.

Joey, always great to see you.

Remind us what this county clerk said to jurors that has now upended the murder convictions.

JOEY JACKSON, CNN LEGAL ANALYST: Yes, it was pretty significant, Boris. Good to be with you.

So, now the county clerk, remember, is a person who pretty much oversees the jury. Whenever there's a jury trial, you have a jury clerk, what you call -- or will call you, hey, we're starting late today, what are the lunch orders going to be. They pretty much oversee.

And the reason I mentioned that, Boris, is because they develop somewhat of a rapport, and they certainly have credibility because they're the extension of the judge.

And when you have a person of that magnitude who's connected to the judge making rulings talking about watch his body language, he's lying to you, you know, he's misrepresenting, this is not going to take long when you go and deliberate, and in terms of the jurors deliberating and finding him guilty, and making other comments like that, which are clear in your suggestion that he is guilty, you shouldn't believe a word he says, it's all in his demeanor, that's not good.

And so the issue when you have a clerk like this or any court personnel -- in this instance, it was the clerk, Ms. Hill -- when you have a person doing that and introducing information to the jury, obviously, it has an impact.

And in the event that it doesn't have an impact, it's still problematic. But the court essentially found as follows. That directly goes against the right to a fair trial. We hold that as sacrosanct in this country. You have a right to a fair trial.

And you can't have a right to a fair trial when you have the very clerk in the court in which the case is being held and heard saying things like this. And so that's the essence of what she said. And as a result of that, the court said, hey, it impaired the jury. There's a presumption that what you said to the jury was prejudicial, affected the outcome of the case, and we have got to do this again.

SANCHEZ: So, Joey, it's not as if Murdaugh is going to just walk free tomorrow, right? He separately pleaded guilty to dozens of financial crimes, and he's serving concurrent state and federal sentences of 27 and 40 years for those.

Does this ruling at all impact those sentences?

JACKSON: So it does not. Those are separate, as we look there. So he was in a world of legal trouble, both from a state perspective and a federal perspective, of course, with the state 27 years, the federal government for 40 years.

So that certainly is not impaired or impacted at all. And so he's not going to get out. He's not going anywhere as a result of this. I should also say that there's another case that could be pursued against him relating to a suicide attempt in which he paid his cousin to shoot him, just bizarre stuff.

SANCHEZ: Yes.

JACKSON: And that's a case that would be pending. So he's not going anywhere. And the other issue, we should say, is that the court ruling, the Supreme Court, while significant and while upending his conviction, doesn't mean he will be retried again.

That's a function not of the judges and the Supreme Court, who ruled 5-0 that you can't have a -- you can't inflame jurors like this or taint jurors like this. It's up to the actual prosecutors to make the determination as to whether to do a retrial.

But, certainly, as a result of this decision, that's what the court said he must get.

SANCHEZ: So, as those prosecutors are weighing this, I mentioned a moment ago the amount of content that was generated by this entire case in the form of documentaries and limited series and stuff like that.

How do you pick a jury? How do you find a jury pool that hasn't heard about this case or that can weigh in on this case without having any impressions of Alex Murdaugh or his family or any of the entire affair?

JACKSON: So, what happens -- and this is very critical. What happens is, when you select a jury, the calculus and analysis is not whether you have heard about the case. Do you have an opinion about the case? What do you think about the case? What are your views about the case? How much of YouTube did you see it on? How much did you watch CNN?

[13:20:04]

The issue is, sir or ma'am, could you agree to put that aside and evaluate the case based upon what you hear in the courtroom, based upon what you see in the courtroom, based upon the evidence that is presented? And if it's presented strongly enough, do you agree, sir or ma'am, to vote for the prosecution because you would conclude that he's guilty? In the event, however, that you conclude that the evidence in the

courtroom, not based on your opinion, is of a value that it doesn't establish as guilty, be not guilty? Could you agree with that?

So that's really the analysis when you're selecting a juror. Unless you're under a rock nowadays, Boris, you have heard something because we are in such a social media, sensationalized society. If you're not watching it on TV, it's certainly there, right?

And so I think that, if there is a retrial, that certainly is going to factor into it. And if a juror says, no, no, I have opinions, he's guilty, they're not going to be paneled because they're going to be challenged for cause.

In the event, however, that a jury concludes that, you know what, I'm good and I -- everybody has the opinion I have mine, I could serve, then they will serve.

But this is an important decision. And I should also briefly note that the court was somewhat concerned also because the case began -- became all about his financial crimes. And it was sort of like, wait a minute, are we on trial for murder of his two family members or is this a case about financial fraud?

And so the court, in its analysis and opinion, said, you got to limit that, court, moving forward. Yes, you can put some of that out there, but when does it become a case about he's a bad guy, convict him, as opposed to he's a murderer? Because that's what we're here for.

Always have to keep your eye on the prize when you have a case before a court and before a jury.

SANCHEZ: And a case like this one, especially. The saga continues.

Joey Jackson, thanks so much for joining us. Appreciate it.

JACKSON: Thanks.

SANCHEZ: Still ahead, exclusive reporting of a CIA secret campaign in Mexico against cartels. We're going to show you what CNN is learning about the new effort to dismantle entire criminal networks.

Plus, a report from "The New York Times" finding that Tehran has regained access to most of its missile facilities. Coming up, what this signals for an already fragile cease-fire.

Stay with us.

(COMMERCIAL BREAK)

[13:26:42]

SANCHEZ: Now to some new exclusive reporting.

CNN is learning the CIA may have facilitated a car bombing in Mexico that killed a member of the notorious Sinaloa cartel. Sources say the attack is part of a secret CIA campaign south of the U.S. border aimed at dismantling drug cartel networks by taking out mostly mid-level members.

CNN national security correspondent Natasha Bertrand joins us now.

Natasha, what have you learned?

NATASHA BERTRAND, CNN NATIONAL SECURITY AND POLITICS CORRESPONDENT: Yes, Boris, so this is part of an expanded CIA campaign inside Mexico that is spearheaded by the elite and very secretive paramilitary force within the CIA known as Ground Branch.

And these operations officers, we are told, have been directly participating in lethal attacks on mostly mid-level cartel members inside Mexico. Those mid-level members attract less attention, for example, when they are targeted. They are key cogs in the machine, however, and it's part of that infrastructure of the cartel networks that the Trump administration has repeatedly said they are trying to destroy.

And one such episode occurred earlier this spring on March 28, and we have a bit of video of it in which a car was traveling down, you can see it there, a highway, very busy highway just outside of Mexico City, exploded in broad daylight. The circumstances surrounding that incident were not made clear by the Mexican government.

And we are told that that is one such operation that was facilitated by CIA operations officers to take out a member of the Sinaloa cartel who was inside that car, the Sinaloa cartel being one of the cartels that the Trump administration has designated as a foreign terrorist organization.

So, what we are -- when we went to the CIA for comment about all of this originally, presenting them with details of our reporting, they said that they were going to decline to comment. They later came out after publication of the story and said in a statement -- quote -- that the report was "false and salacious" that was "nothing more than a P.R. campaign for the cartels and puts American lives at risk."

Now, similarly, we reached out to the Mexican government for comment repeatedly about our findings before publication, and they did not respond to our request for comment, saying that they -- ultimately coming out after publication, saying that they reject any notion that the CIA is operating unilaterally inside Mexico or conducting any kind of lethal operations, something that Claudia Sheinbaum, the president of Mexico, echoed earlier this morning in a press conference.

But, look, this is a very delicate issue for the U.S. and Mexico.

(CROSSTALK)

SANCHEZ: Yes.

BERTRAND: The presence of CIA operatives inside Mexico is obviously not something that the Mexican government would like to advertise. And, previously, we have seen the Mexican government acknowledge that

they have not been fully aware of the CIA's presence inside the country just as recently as last month in the state of Chihuahua when two Mexican -- or two CIA operatives were actually taking part in an operation on a meth lab in that state that the Mexican government was not aware of.

So, clearly, a lot of politics going on here, but this is something the Trump administration has said repeatedly that they are willing to do, take it on alone, if the Mexican government is not going to do more to combat the cartels themselves.

SANCHEZ: Wow, a really eye-opening story.

Natasha Bertrand, thank you so much for that.

Coming up: The administration says that Iran's military is decimated, but, according to a new "New York Times" report, U.S. intel agencies are telling a very different story. We will explain in just moments.

(COMMERCIAL BREAK)