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Putin in Vietnam for Two-Day Stay; Putin Looking to Boost Strategic Partnership; Impact of Tropical Storm Alberto in Texas; Millions of Americans Deal with Extreme Weather; LinkedIn Co-Founder: Biden "More Pro-Business" Than Trump; CEOs Scared of Donald Trump; Boeing Potentially Facing Another Safety Issue. Aired 10:30-11a ET

Aired June 20, 2024 - 10:30   ET

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

[10:30:00]

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JIM ACOSTA, CNN ANCHOR: Today, the next stop in Vladimir Putin's tour overseas, the Russian president is in Vietnam for a two-day stay, this comes after his visit to North Korea where he met with fellow autocrat Kim Jong Un after a lavish welcome. The pair announced a new strategic partnership between Moscow and Pyongyang. A key provision of that announcement of mutual defense pact is raising eyebrows elsewhere on the Korean Peninsula.

CNN's Mike Valerio is in Seoul for us. Mike, what's the reaction there?

MIKE VALERIO, CNN CORRESPONDENT: Jim, I would say in a word, condemnation, or make it two words, strong condemnation from South Korea. Because, you know, believe it or not, South Korea actually has OK relations with Russia for decades now. But you see it on all the front pages here, I mean, it's close to the middle of the night in Seoul.

This was earlier in the morning, the headline of strategic automatic military assistance is certainly what is raising eyebrows here on the Korean peninsula, reviving this 1961 treaty made between Khrushchev and Kim Il Sung, the founder of North Korea.

Also triggering South Korea to say, you know what? We're not lending or giving lethal weapons to Ukraine for their fight against Russia. Perhaps -- the leader of South Korea's National Security Council is saying, perhaps we South Koreans may re-examine that policy if Moscow and Pyongyang are going to work closer together in the military sphere. So, that is all a continuing conversation as the dust begins to settle here.

Now, Putin is off to Vietnam where it is a much different conversation. We saw all the pageantry here and just above the DMZ in North Korea, sharing limousine rides. It is a much more subdued affair in Vietnam, where Vietnam has to be, you know, careful with what exactly happens on its soil. It's very proud, Jim, of being a nonaligned nation. And if you think of this trip that Vladimir Putin is doing, if you have a neighborhood pariah where you live, you know, the neighborhood pariah may go from house to house to check up on things and say, you know, after something terrible has happened, we good, we OK? So, that certainly makes sense for Russian President Vladimir Putin to visit North Korea.

Vietnam is certainly a logical next step for that move because Vietnam has a whopping 70 percent, Jim, of its defense hardware that comes from one place and one place alone, and that is Russia. A huge oil field in Vietnam, also a joint project between Vietnam and Russia. Communist leaders in Vietnam today, waxing poetic about their love of Russia and their time studying there.

But the rhetoric is very subdued. Vladimir Putin, rather than saying, American imperialism has gone on for too long, like he said in North Korea yesterday, is keeping a quieter tone we've heard all day today. Him just talking about economic projects, scientific ventures, that he and the Vietnamese president could endeavor on.

So, the question is, what is Putin going to leave Vietnam with? We are waiting to see, because that could determine how Vietnam perceives Russia, and really, if this tour of the neighborhood is successful, Jim.

ACOSTA: And Mike, we have a little bit of a video or some images coming in just in the last couple of minutes of Putin and Kim Jong Un behind the wheel of a car together. I mean, this really looks like a bromance here.

VALERIO: Yes, it is a bromance. And you know, Vladimir Putin is trying to show the world that they can go their own way. They can go their own way in that limousine and this one right here. It's the same from the front paper -- front page of one of the papers in Seoul. They're trying to say that they don't need the west. This is what Jim Sciutto wrote in his book, "The Return of Great Power Competition," that there can be a new world order, and Vladimir Putin wants Kim Jong Un to be part of that order, Jim.

ACOSTA: All right. Apparently, a gift between the two leaders. I believe "The New York Post" referred to this as the nukes of hazard. Fascinating stuff. All right. Mike Valerio, thanks very much.

Coming up, from fires to floods, the impact in Texas from Tropical Storm Alberto, as wildfires keep burning next door in New Mexico, coming up.

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[10:35:00]

ACOSTA: Floods, fires and heat right now. Millions of Americans are dealing with another day of extreme weather. Look at this new video of the storm surge at Surfside Beach in Texas this morning. Wow. All of this from Tropical Storm Alberto that made landfall in Mexico just hours ago. One state over areas in New Mexico devastated by wildfires are now at risk of flash flooding.

Also, on our radar today, the dangerous heat wave that won't let up. It's putting around 80 million people at risk across the Midwest and the Northeast. We're tracking it all. CNN's Rosa Flores is in Corpus Christi for us. Ed Lavandera is in Capitan New Mexico. Ed, let me go to you first. What's happening on your end of things?

[10:40:00]

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: Well, Jim overnight and into this morning, there has been significant rainfall. We're told by a local firefighting official here that that has really helped in terms of helping keep and prevent the spread of this massive wildfire wildfires around the Ruidoso, New Mexico area. So, that that is some good news.

However, that rainfall has come in such heavy bursts at times that it has triggered mudslides and other kind of flash flooding events throughout the canyon areas of where this fire is taking place. So, you know, it helps in one regard, it causes other headaches and problems in another way. So, that is what the fire crews are dealing with on the ground right here today.

But the good news is, is that that rainfall is seeming to beginning the process of helping tamper this massive wildfire, which is burned more than 23,000 acres since Monday afternoon. So, that's enforced more than 8,000 people to evacuate this area.

And that was a very dangerous situation. There are now two confirmed deaths. The latest victim, we are told, is someone who was found in their car, presumably trying to escape from the fire areas. The other person was a 60-year-old man by the name of Patrick Pearson, who was found dead near a hotel where he was staying at. His son and his family says that he had broken his leg and was unable to drive. And he talked about just how difficult this moment has been for their family.

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ZACH PEARSON, FIRE VICTIM'S SON: He was trying to get away from the fire as fast as he could, you know, but with a broken leg and a brace, using a walker, trying to carry what you could. It's heartbreaking to know that he didn't make it, to know that he was trying to run for his life, trying to get away from the fire.

(END VIDEO CLIP)

LAVANDERA: And that's what so many people were doing and have done since Monday. More than -- Jim, as I mentioned, more than 8,000 people have evacuated more than 1,400 structures in homes that have been devastated by these fires, and many of those people still anxiously awaiting for the opportunity to get back home so that they can assess the damage and what life will be like for them in the years ahead.

ACOSTA: Yes. And, Ed, to see the -- just to the whipsaw, the -- going back and forth, some of these intense wildfires to that flash flooding, it's just unbelievable what this community has had to go through.

LAVANDERA: Oh, no question. You know, imagine this massive -- you know, they describe them as a burn scars on the mountainside, and when the rain falls on all of that, it is basically just dirt and mud and it creates those mudslides. So, you know, it creates another set of problems. But right now, that main priority is getting these fires out as quickly as possible.

ACOSTA: Very scary situation and all the more reason to listen to local authorities when they tell you to be careful and stay safe in these kinds of conditions. Ed Lavandera, thank you very much. Really appreciate it.

Coming up, a revealing new interview with a business insider who says CEOs are scared of Donald Trump. That's coming up.

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[10:45:00]

ACOSTA: The co-founder of LinkedIn would like to connect on the 2024 presidential race. Billionaire Reid Hoffman is calling on business leaders to reject former President Trump, telling CNN he believes President Biden is fundamentally more pro-business. Hoffman told CNN's Matt Egan some of his peers are scared to speak out against Trump.

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REID HOFFMAN, CO-FOUNDER, LINKEDIN: I literally talked to business leaders who are fearful about speaking out against this because they're fearful of retaliation.

MATT EGAN, CNN REPORTER: Are you concerned that Trump could retaliate against you?

HOFFMAN: Of course, I'm concerned.

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ACOSTA: And Matt Egan joins us now. Matt, what else did he say?

EGAN: Well, Jim, it's remarkable to hear a billionaire admit that he's scared that the former leader of the free world could retaliate against him just for speaking his mind. But it does say a lot about where we are right now. And remember, a lot of former CEOs who were critical of Former President Trump, especially after January 6th, they've turned around on him, right? They're back on the Trump train.

Now, Reid Hoffman, however, he is very much speaking out against some of the dangers of Trump being returned to the White House. He just penned this op-ed for "The Economist," where he slammed business leaders who were supporting Trump. That op-ed was titled, "American Business Should Not Empower a Criminal."

Now, what's interesting is that Hoffman told me that in the end, Trump is going to hurt corporate America where it hurts the most, their bottom line. He says that it's actually President Biden who is pro- business not Trump, because he says that Biden respects the rule of law and he doesn't think that Donald Trump does.

Now, it's an interesting argument because obviously Trump has presented himself as the CEO president, right? He's fighting for lower corporate taxes, less regulation. Hoffman's argument is that, in the end, none of that stuff matters if there's no rule of law. Take a listen to what else he said.

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HOFFMAN: The rule of law is what has made America very special. It has made an environment for business that has been spectacular, a glowing beacon to the entire world. It's the trust that other countries have in us and our system and how we interact, which allows our industries to export and allows the dollar to be the reserve world currency of the world. And that's the reason why Biden is fundamentally, no matter what, more pro-business than Trump.

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[10:50:00]

EGAN: More pro-business than Trump, according to Hoffman. Now, the Trump campaign responded in a statement that attacked Reid Hoffman, describing him as "a protege of George Soros," attacking his personal character. However, the Trump campaign did not directly address any of Reid Hoffman's actual arguments here. And listen, at the end of the day, this is going to be a matter for the American voters to decide about who's going to be best for the economy, who's going to be best for everyone's own personal financial situation. Clearly, Jim, that is going to be a major deciding factor in November.

ACOSTA: Yes, Matt. I mean, there's been a lot of discussion on this about whether a huge immigration crackdown, how that would affect a big business in this country because relying on migrant labor and also what happens if Trump imposes tariffs, you know, in a huge way, that obviously will have a ripple effect.

And Trump apparently posted on Truth Social about firing CEOs. What can you tell us about that?

EGAN: That's right. Trump, about two days ago, he posted on his social media platform that business executives and shareholder representatives should be 100 percent behind Donald Trump. Anybody that's not should be fired for incompetence. And that post on Truth Social went on to quote a Wall Street Journal story talking about how Donald Trump is pushing for lower corporate tax rates. And President Biden wants to raise the corporate tax rate. Just a stunning statement there from the former president.

But to get back to your point about what happens on immigration and trade, it is really important to remember that inflation, right, the cost of living remains the number one frustration for Americans right now when it comes to the economy. And what's interesting is that economists that I've spoken to have argued that some of Trump's campaign proposals would actually run the risk of making inflation worse, specifically the idea of increasing tariffs on China, having across the board tariffs, that ultimately that would raise costs for businesses and for consumers.

And also, on the immigration front. I mean, Former President Trump has advocated for sweeping deportations at a time when a lot of businesses say they need more workers, not less. An economist warned that if you deport a lot of people, then you could have a situation where wages go higher, and that would lift prices. So, a lot of factors at play when you think about what some of these policies would actually do to the economy. Jim.

ACOSTA: All right. Very interesting. Matt Egan, thanks a lot. Really appreciate it. We'll be right back.

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[10:55:00]

ACOSTA: Boeing is facing yet another potential safety issue. The plane manufacturers warning pilots that if a bird hits the engine of a Boeing 737 MAX, the passenger cabin could fill with smoke. CNN's Pete Muntean is following this and joins us now. Pete, more concerning news regarding Boeing. What can you tell us about this?

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Well, this is pretty significant because smoke in the cockpit has caused crashes, smoke in the cabin can cause incapacitation. It can make you sick. The procedure is to get on the ground as quick as possible. And this issue, just coming to light now, signals yet another possible issue with Boeing's 737 MAX line. A model that's been dogged by design and quality control issues.

This stems from two incidents last year on Southwest Airlines flights. In both cases, a bird hit one of the plane's two engines. In February, Boeing warned Southwest Airlines and American Airlines of the issue, and in turn, they warned their pilots.

Here is what the alerts said. American Airlines told its pilots, Boeing has received two reports of CFM LEAP-1B engine failures following large bird strikes on takeoff and initial climb. That could cause oil to burn. And Southwest Airlines told its pilots that could cause the immediate presence of smoke and fumes entering the passenger cabin through the air conditioning system.

Now, the company that makes the engine, CFM International, says the engine has met bird ingestion certification requirements. Performed as designed, though the birds in these incidents were very large, much larger than required. to be given the blessing of regulators.

Now, the Federal Aviation Administration says, we'll continue working with Boeing on this investigation, into these incidents will determine if additional actions are required based on their findings.

Bird strikes are pretty common. Most bird strikes occur early in the morning or at sunset when birds are most active. 90 percent of them happen near airports. That means the biggest risk is on takeoff and landing. The FAA recorded some more than 17,000 bird strikes in 2022. It is a huge and prevalent issue. Most of them don't cause issues like this.

And there is a name for what is left over after a bird strike happens. It is called snarge. Something that's typically picked up by researchers, they look into that to try and mitigate these bird strikes to do it safely without hurting the birds, and of course without hurting airplanes and causing issues like this.

ACOSTA: Fascinating. All right. Please stay on top of this, Pete, we really appreciate it. Thanks so much. And the next hour of "Newsroom" starts right now.

All right. you are live in the "CNN Newsroom." Jim Acosta in Washington. We begin with the race for the White House.

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