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CNN International: Blinken: Could Be Last Chance For Gaza Ceasefire Deal; Israel Declares Tel Aviv Explosion A "Terror Attack"; Iran Vows Revenge Over Hamas Leader's Killing. Aired 11a-12p ET

Aired August 19, 2024 - 11:00   ET

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


[11:00:00]

(COMMERCIAL BREAK)

RAHEL SOLOMON, HOST, "CNN NEWSROOM": Hello, and welcome to a special edition of CNN Newsroom. I'm Rahel Solomon live in New York, where we are following two major stories for you. Just hours from now, the Democratic National Convention will kick off in Chicago. That's where President Joe Biden will formally pass the torch to Kamala Harris.

JIM SCIUTTO, HOST, "CNN NEWSROOM": I'm Jim Sciutto in Tel Aviv, covering a critical moment for the entire Middle East. U.S. Secretary of State, Antony Blinken, says this could be the best, maybe the last chance to reach a ceasefire and hostage deal for Gaza.

And we begin with that stark warning from the U.S. top diplomat on a day of intense diplomacy behind closed doors. Blinken is here in Israel, meeting with now the Defense Minister Yoav Gallant. Earlier, he spoke with the Prime Minister Benjamin Netanyahu, separately as well with the Israeli President Isaac Herzog. Israel and Hamas are already blaming each other for putting up new obstacles in the way of an agreement. Talks are expected to resume this week on a proposal that mediators say bridges the gaps between the two sides. Blinken says it is time for everyone to get on board and stop looking for excuses to say no.

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ANTONY BLINKEN, U.S. SECRETARY OF STATE: This is a decisive moment, probably the best, maybe the last opportunity to get the hostages home, to get a ceasefire, and to put everyone on a better path to enduring peace and security.

(END VIDEO CLIP)

SCIUTTO: Blinken said the U.S. is trying to ensure no parties do anything that could jeopardize the ongoing ceasefire efforts. But, just last night, Tel Aviv, not far from where we're standing right now, was rocked by an explosion, and now Hamas and Islamic Jihad are claiming responsibility.

(VIDEO PLAYING)

Police here in Israel are calling this a terrorist attack. They say the only person killed was the bomber himself, though a passerby was injured. That's the atmosphere here right now, already nervous, as these talks continue.

CNN State Department Reporter Jennifer Hansler is here with me in Tel Aviv. Senior International Correspondent Fred Pleitgen, he is in Tehran, of course, has a stake in this as well.

Jennifer, first to you, Blinken is here. Of course, it's important for him to meet directly with the Israeli leaders, but that's just one piece of the negotiation. On that piece of the negotiation, are we confident that the U.S. and Israel are on the same page?

JENNIFER HANSLER, CNN STATE DEPARTMENT REPORTER: Well, it's hard to say, Jim. Coming out of this meeting with Netanyahu, which I should say is three hours long earlier today, two and a half of those hours were just Blinken and Netanyahu meeting one on one. Coming out of that meeting, they do seem to be on the same page. Both sides are saying these were constructive, productive meetings. The Prime Minister's Office said they had reiterated their commitment to this bridging proposal that the U.S. put forward, a source familiar with that deal. The meeting also said that the Prime Minister reiterated their commitment to the deal and said they would send negotiators on to these talks that are going to be happening this week, and they expect the process to move forward.

However, behind the scenes, we expect that there were largely probably very difficult conversations that were had in that three hour meeting about a plethora of issues, not only on the ceasefire deal, but on this issue of the day after in Gaza, what happens on governance, happens on security, and this prospect of perhaps a Palestinian state moving forward? So, we have to see. Yeah.

SCIUTTO: All these are issues that have been sitting there for weeks and months. The question, I suppose, is how they bridge those gaps at this point on the events last night, because Hamas did two things last night. One, they released a statement blaming Israel for setting up new obstacles to the talks, certainly not the same interpretation we're hearing of constructive and cautious optimism etcetera from the Israeli side. But also, they're now claiming responsibility for an attempted terror attack here in Tel Aviv. What do U.S. diplomats say the effect of that is on these talks?

HANSLER: They are also downplaying the prospect of this having a negative impact on the talks. They are saying they still expect things to move forward as planned. You heard President Biden last night saying he is still hopeful that a deal can be reached. They are still working on it. He still thinks this can be done. But, it's -- a lot of optimism we've heard over the past week or so has not been reflected from one of the key parties in this deal, and that is Hamas, the fact that they did put out that statement, basically seeming to reject the proposal at hand. Now, whether that's posturing, whether that is an actual outright rejection, the U.S. doesn't think it is.

But, we'll have to see whether they sign on to this deal that the U.S. is pushing for, and that is why Blinken is in the region to try to get this across the finish line. [11:05:00]

And he is sounding the alarm that this could potentially be the last option.

SCIUTTO: Yeah. Those words of his last best chance, they were revealing about the prospect that if this doesn't work now, then it's hard to see where it might work in the near future.

Jennifer Hansler, thanks so much.

And of course, Iran is watching these negotiations quite closely as well. Our Fred Pleitgen is there. Fred, tell us what you're hearing from the Iranian side, as these negotiations continue.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hi there. Jim. Yeah. The Iranians today came out with another statement confirming essentially what you guys were just saying, that, first of all, they are very closely monitoring those ceasefire talks, but at the same time, of course, that for them, retaliation for the assassination of Hamas leader Ismail Haniyeh is still very much in the cards.

The spokesman for Iran's Foreign Ministry came out today and said the Iranians actually want a ceasefire agreement to be worked out. They say that's something that they believe is in their interest. But, at the same time, they also say that they are not optimistic that one can be worked out, because they believe that the Israeli government, specifically, Prime Minister Netanyahu is not serious about working one out. They also don't really trust the U.S. as being objective mediators in all of that. But, the spokesman for the Foreign Ministry, Jim, also said that to the Iranians, the negotiations for the ceasefire and their own perspective retaliation against Israel are two very separate issues. Here is what we're learning.

(BEGIN VIDEOTAPE)

PLEITGEN (voice-over): Iran says its drones and missiles are ready for an attack against Israel in retaliation for the killing of Hamas chief Ismail Haniyeh. But, as tensions remain at a boiling point, Iran's political transition continues. The new President Masoud Pezeshkian's cabinet appointees going through confirmation hearings in Iran's Parliament, the Majles.

PLEITGEN: Once Masoud Pezeshkian's cabinet is approved by Iran's Parliament, the new government will have its work cut out for it. The Middle East, of course, is in severe turmoil, as the region awaits Iran's possible harsh retaliation for the assassination of Ismail Haniyeh.

PLEITGEN (voice-over): While Iran's response appears delayed, parliamentarians here say, make no mistake, revenge is coming and will be harsher than Tehran's last strikes against Israel after Iran's consulate in Damascus, Syria, was bombed in April.

This time, they attacked our mainland. The world will witness a serious reaction by us, the time, the place, and the type of reaction is to be decided, he says, and then adds, you saw the first example. You can multiply that as much as you like. We will teach our enemies a lesson so they will not attack us anymore, this parliamentarian says. We are seeking peace and calm in the region and are not warmongers at all.

The U.S. says it's seeking a ceasefire between Israel and Hamas also in the hopes a deal to end the violence in Gaza could persuade Iran not to launch the retaliatory strikes against Israel. But, Washington has also deployed substantial forces to the Middle East. A senior Biden administration official warning Iran could face, quote, "cataclysmic consequences if it attacks Israel".

Iranian parliamentarians brushing off that warning. If they attack or threaten us, the Iranian response will be jaw breaking, he says. Iran has showed in practice it will do so and has the means to do so. The capabilities we have are not what the world knows about. They are far beyond. But, when, where and how Iran plans to use those capabilities remains shrouded in secrecy, keeping the Middle East on edge.

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PLEITGEN: So, Jim, the Iranians are saying they believe that they need a retaliatory strike as a form of deterrence. At the same time, they've also said that they don't want to have the region further destabilized than it already is, Jim.

SCIUTTO: And for them to say as well that they want a ceasefire, that's notable. Fred in Tehran, thanks so much.

We will have much more ahead on the efforts to prevent a wider war in this region, including a live update from Beirut and our Ben Wedeman.

For now, let's go back to Rahel Solomon in New York. Lots of news there as well.

SOLOMON: Lots of news, Jim. Thank you very much. We'll see you shortly.

Yeah. Let's get to our other top story this hour, the convention that promises to be a historic one, one that seemed unimaginable even just a few weeks ago. President Joe Biden will pass the torch to Vice President Kamala Harris today, as Democrats try to present a united front behind her. In just a few short weeks, the Harris campaign has reenergized the party. Now, she steps into her biggest stage yet, in Chicago, and among the big names scheduled to speak on night number one, former Secretary of State Hillary Clinton, First Lady Dr. Jill Biden, and of course, the President, Joe Biden. Later in the week, we will hear from former Presidents Obama and Clinton and former First Lady Michelle Obama.

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Now, the Vice President has been surging in the polls since her campaign began, making up the polling deficit that President Biden had faced and then some, the latest evidence, a CNN Poll of Polls conducted this month of likely and registered voters shows no clear leader, with Harris at 50 percent to Trump's 48 percent.

Let's bring in CNN's Senior White House Reporter Kevin Liptak, who joins us from the convention. A great city. I went to school in Chicago. So, Kevin, give us a sense of what and who we can expect on day one.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Well, certainly tonight will be that symbolic handing of the baton from President Biden to his Vice President, Kamala Harris. And I think President Biden is taking this speech that he'll deliver this evening very seriously. He spent all weekend up at Camp David, revising his words with two senior officials. And I think he really does feel the weight of this moment. He first came to a Democratic National Convention in 1972. Back then, he was a long-shot candidate to become the youngest member of the U.S. Senate, and tonight really represents the end of that political arc. He is the oldest sitting incumbent President handing off the baton to his Vice President, his chosen successor.

There is no question, this is not the address that President Biden once hoped to give, once wanted to give, and certainly, I think he is still processing some of what led to his departure from the top of the Democratic ticket. But, when you talk to senior Biden officials, they do say that he does want to make clear in his speech this evening that he views Kamala Harris as the best person to carry on what he started in office, and then it's the best inheritor of his legacy, and you will hear that from him tonight. And we did also hear from the White House Communications Director, Ben LaBolt, earlier, saying that President Biden would also call out Trump by name. This is a political convention. There won't be sort of any veiled references to the former guy. He does want to make clear the threat he views to democracy if Trump were to regain the presidency.

Now, Kamala Harris will be in this arena this evening to listen to President Biden's speech. That was something that was important to her personally. But, afterwards, President Biden and his wife will head off to vacation in California, essentially giving the keys to the Democratic Convention to Harris.

And when you look at the program that organizers have put together for this week, you see two clear themes, I think. One is to introduce Kamala Harris to the American public, who may just not have been paying attention until this point, and she'll certainly have a lot of help with that, two former presidents, two former first ladies, plenty of Democratic wattage to help her make her case.

But, they'll also want to make clear the stakes of this election, the threat they see Donald Trump posing to democracy, and we are learning that they are featuring speakers who can sort of underscore that point for them, congressmen who served on the January 6 Committee in Congress, also a police officer who is wounded in the Capitol riot, all trying to underscore this point that President Trump would pose a threat to democracy, if he were to regain the White House.

Of course, the capstone speech to the entire event will come Thursday when Kamala Harris speaks to this convention, and the real hope is that that speech will help propel her into the fall and into the heat of the election. There is no question she is coming into this convention on a swell of momentum. She has taken the lead in polls. But, when you talk to Harris advisors, they make clear this is still a very tight race. The real work will begin once this convention ends, Rahel.

SOLOMON: But, Kevin, for you, it sounds like you have a lot of work this week ahead of you --

LIPTAK: Yeah.

SOLOMON: -- between all of the speeches in the event.

LIPTAK: Yeah.

SOLOMON: Here is hoping that you get some good coffee and some good rest in between it off.

LIPTAK: Yeah.

SOLOMON: Kevin Liptak, thank you. I'll see you soon.

LIPTAK: Sure.

SOLOMON: All right. In other news, some sad news to bring you, legendary daytime talk show host Phil Donahue has died at the age of 88 after a long illness. He passed away surrounded by his family, including actress Marlo Thomas, his wife of 44 years.

CNN's Sara Sidner looks back now on the life and career of Phil Donahue.

(BEGIN VIDEOTAPE)

PHIL DONAHUE, DAYTIME TALK SHOW HOST: After 29 years and more than 6,000 shows, here we are.

SARA SIDNER, CO-HOST, CNN NEWS CENTRAL (voice-over): Phil Donahue changed the face of daytime television forever with a talk show that tackled controversial issues in front of a live audience.

DONAHUE: We were so different. Everything else around us was a soap opera, game show.

SIDNER (voice-over): Donahue honed his broadcasting skills early in his career as a radio and TV news anchor in his native Ohio. His big break came in 1967 when Dayton's WLWD TV launched "The Phil Donahue Show". Donahue had the groundbreaking idea of asking the studio audience for questions.

DONAHUE: Suddenly, people were watching. People just like themselves stand up, kick tires, complain, and we found that we like that.

SIDNER (voice-over): The Phil Donahue Show built a reputation as a forum for hot button topics like equal rights for women.

DONAHUE: Issues that women cared about and talked about among themselves, we were on the air talking about it.

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I realized that people in the audience were asking better questions than I were.

SIDNER (voice-over): The show moved to Chicago and later New York, all the while expanding to more stations across America. National syndication meant higher profile guests, among them, his future wife, actress Marlo Thomas. In 1977, audiences watched the couple fall in love live on stage.

DONAHUE: You are really fascinating and you are --

MARLO THOMAS, WIFE OF PHIL DONAHUE: No. But, you are wonderful. I said it when we were off there, and I want to say, you are loving and generous, and you like women, and it's a pleasure. And whoever is the woman in your life, is very lucky.

DONAHUE: Well, thank you very much. She was just obviously a very exciting person. She was not only gorgeous, she had great facility, language and she had opinions, and she was a feminist. She was somebody could argue with.

SIDNER (voice-over): Donahue paved the way for daytime talk show hosts like Geraldo Rivera, Jerry Springer and Oprah Winfrey, but soon, began losing viewers to his new lineup. In 1996, after years of declining ratings, "The Phil Donahue Show" ended.

DONAHUE: Well, thank you. I am flattered. You may be seated.

SIDNER (voice-over): Donahue returned in 2002 with a short-lived interview program on MSNBC. The left-leaning broadcaster claimed his outspoken opposition to the Iraq war led to the show's cancelation. In later years, he appeared as a political commentator and produced the 2007 anti-war documentary "Body of War".

DONAHUE: Let her voice be heard.

SIDNER (voice-over): Phil Donahue, daytime talk pioneer and an enthusiastic examiner of society's thorniest questions.

DONAHUE: I think everybody ought to have a talk show. It's a wonderful education.

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SOLOMON: Welcome back. At just about 11:18 here in New York, about 10:18 in Chicago, that's where Democratic leaders and delegates are gathering to kick off the party's convention. And optimism is high, with Vice President Kamala Harris expected to emphasize the stark differences between her and Republican Donald Trump. While the DNC is happening, the former President plans to hit the campaign trail and visit battleground states. He'll be in the critical state of Pennsylvania today. Let's bring in our panel now. We have CNN Political Commentator and

Democratic Strategist Maria Cardona, good to see you, and Republican Strategist Rina Shah, always great to see you as well, Rina.

Maria, let me start with you. It's a different convention than anyone thought a few months ago. How complicated is Biden's message going to be tonight? A month ago, he was at the top of the ticket. Now, he is passing the baton.

MARIA CARDONA, CNN POLITICAL COMMENTATOR, & DEMOCRATIC STRATEGIST: Well, I don't think it's complicated at all, Rahel, different, for sure. I think that there is a lot of emotion involved. That's for sure as well. You're right. A month ago, this was a very different ball game, and expectations were very different as to what kind of convention this was going to be.

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But, I think what you have seen in this last month, Rahel, is who President Biden is at his core. And there is no question that has been difficult, that there are a lot of emotions going through what he is going to have to do tonight. But, you also see who he is in his DNA, and that is the consummate public servant, the person who always puts the good of the public, the good of American voters, the good of this country, first and foremost, and that's exactly what he is doing tonight. He is also keeping a great promise that he made when he first ran for President in the 2020 cycle, and that is that he was going to serve to be a bridge to the next generation.

Tonight is the physical, metaphorical, literal, everything building of that bridge, as he passes on his legacy to Kamala Harris as someone who is a historic figure, who will most likely assent to be President of the United States, and that will be his doing. So, he can leave here. He is going to get a hero's welcome, no question. He can leave here incredibly proud of his accomplishments, of what he did for this country, taking it out of a historic pandemic, restoring the economy, restoring protections of our democracy, our rights and freedoms, and now he is going to hand that over to Kamala Harris, who can take this to the next level. And the excitement here and across the country is palpable.

SOLOMON: And Rina, if you're a Republican candidate or the Republican candidate for President, I mean, the DNC is going to dominate the airwaves this week. What are you doing in response? How do you get any attention this week with so much focus on Chicago?

RINA SHAH, REPUBLICAN STRATEGIST: I think today, on day one of the DNC, there is a great frustration amongst the Republican political class, not just inside the beltway, but across the country, because it's as if the past two weeks have been a real dismal showing of attitude. It's not positivity and rainbows you're hearing from the Republican side. The showing from the right has been lackluster. It's been non-charismatic. It's been not filled with hope, and that is what we're going to get, the visual imagery of, out of the Democrats for the next four days. So, there really isn't countering that in any way, other than just

saying that the moment is what it is. Let the Democrats say what they need to stay. As a political strategy, what Republicans can try to do is offer up some degree of solutions with what they hear coming from the podium in Chicago. Different speakers will be casting a vision for what they think America should be in the next four years. If Republicans want to have any hope again of looking like a positive party, looking like a forward-thinking party, looking like a solutions-oriented party, then they ought to be responding mono imano, which means taking it issue by issue.

We all know there are hugely consequential issues at whatever demographic you're looking at for, whether it's Gen Xers or Gen Zers. There is housing. There is immigration. There is economy, and not least of all, reproductive care access. And so, if we hear Republicans try to give a better, more hopeful vision, that's the only way they can counter, again, this very charismatic, hope filled vision that will be coming from Chicago.

SOLOMON: We're going to actually dig into the economy and immigration in just a moment with my next guest. But, Maria, what are you watching for when Kamala Harris speaks? And it's hard to miss, as the three of us talk here, I mean, she is making history. We are all women of color here. What are you going to be listening for, Maria, both in terms of the historic nature of her speech and her ascending to this role, but also, does she create any distance? Does she need to create any distance between her and Biden?

CARDONA: Yeah. I don't think she needs to create any distance between her and Biden, Rahel, because I think the huge miscalculation that Republicans are making is that they think that Biden's economic policies are unpopular, and they are not. He perhaps was unpopular, but Biden's economic policies were hugely popular with American voters, and they have pulled off the charts over and over and over again, the $35 insulin cap, hugely popular. The $2,000 cap on prescription drugs that was just expanded, hugely popular. The Affordable Care Act that Biden and Harris made even more accessible to millions more voters, hugely popular. The student debt forgiveness, hugely popular.

So, she will absolutely not distance herself from any of those accomplishments. What she will do -- 16 million job creation, hugely popular. But, what she will do, Rahel, is that she will talk about some additional policies where people feel them the most, where the higher cost of living at the grocery store, at the gas tanks, and housing markets with rents, with mortgages, which is what she has already announced.

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She is going to be talking about policies that people feel really, really relevant. And in that way, I think that she is going to give voters this notion that she is working for them. She is fighting for them. She is fighting for the solutions that Rina was just talking about, that apparently Donald Trump is absolutely incapable of, and frankly, does have no interest in talking about because every time he gets in front of a microphone, Rahel, he can only insult Kamala Harris. He only talks about the politics of fear, of division, this dark vision of the country that has absolutely no station in reality at all.

And I think that contrast with Kamala Harris, with -- we're going to see in her speech. She is focused and her foundation is in the politics of joy and in the politics of solving the problems that Americans see right before them, I think that is going to be what brings her to victory in November.

SOLOMON: And Rina, I'll give you the last word here. But, why do you think that is? I mean, I hear Maria say that some of these policies from Biden are hugely popular. He himself may not have been. But, I mean, when you look at polling, it's Trump who gets more credit when it comes to the economy. It's Trump who many people think the economy was better under. We can talk about the data a different day. But, why do you think he spent so much time attacking Harris when he does actually have this issue which voters seem to favor him on and which many voters say is their top issue?

SHAH: Well, the Republican class in Washington is really frustrated with Trump right now because he doesn't speak in specifics. But, that's actually quite ironic, because Trump thinks he does best when he doesn't speak in specifics. We saw last week with that press conference he did from his Bedminster golf club, a place that most people cannot access. He did this conference where he could have talked again about the data, about what a plan he has to make the economy more robust to counter what they call Bidenomics from the right. I didn't hear any specifics again. But, he believes that he can keep attacking Harris because she is running this campaign on vibes. And that's been talked about a great deal. People say you can't win an election based on vibes. I push back and I say it's going well so far.

But, I'm thinking past these next four days, Rahel. I'm thinking, what is the strategy when they start to talk, and they meaning Harris-Walz, about their next four years? And this last week, we got a little glimpse of that when they talked price controls, and suddenly, the right was inflamed. They said that's Soviet talk. That's Communist talk. They started painting her as a Communist. So, see, that's Trump's way of needling, meddling, poking the bear, if you will, to activate the right against her. And he thinks that's a strategy that will be most successful as we roll past Labor Day and into the thick of the campaign, which means September, October.

So, I would just say some free advice to the Harris-Walz campaign, continue to behave like moderates, continue to campaign like moderates, because all that the right and Trump have right now is trying to paint out this ticket, this Democrat ticket, as too progressive and too liberal to conquer the consequential challenges we see America facing today, whether it's economy, immigration or any other kitchen table issue.

SOLOMON: I want to actually focus on the economy now. So, I'm going to let both of you go. Maria Cardona, Rina Shah, thank you both so much. Maria --

CARDONA: Thanks, Rahel.

SOLOMON: -- have a great time in Chicago. Great city.

CARDONA: Thank you so much.

SOLOMON: I will see you soon.

All right. And as our panel just mentioned, one of the big issues of this election is the U.S. economy. Kamala Harris, she laid out her economic plan on Friday, and she says the goal is to lower costs for middle class Americans. Her plan includes a proposal for a federal ban on price gouging at the grocery store. She also wants to offer incentives for the construction of three million new homes and offer down payment assistance for first-time homebuyers. And she is calling for tax relief for working families, including an increase and the child tax credit. Listen.

(BEGIN VIDEO CLIP)

KAMALA HARRIS, VICE PRESIDENT OF THE U.S., (D) PRESIDENTIAL CANDIDATE: More than 100 million Americans will get a tax cut. We will end America's housing shortage by building three million new homes and rentals. I will lower the cost of insulin and prescription drugs for everyone with your support, not only our seniors.

(END VIDEO CLIP)

SOLOMON: OK. Joining us now to crunch the numbers is Maya MacGuineas. She is the President of the Committee for a Responsible Federal Budget. This is a nonprofit public policy organization which addresses federal budget and fiscal issues. Maya, great to see you. So, let's start there. So, this is her plan for the first 100 days, which she says will bring down costs for Americans. I'm going to get your take on a few, if we can kind of rattle through these as quickly as we can. So, on housing, this tax incentive for builders to try to build three million new starter homes, your thoughts on that.

MAYA MACGUINEAS, PRESIDENT, COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET: Yeah. I think that makes a lot of sense. So, first off, the overall focus of this is on affordability, and one of those big components is on housing, and they're looking at both ways to make housing more affordable by giving some tax breaks.

[11:30:00]

But, on the tax credit for more building, we need to create a higher supply of housing. And so, I think that that will. I don't know how effective their specific credit will be. But, I think trying to create more housing is definitely something that will contribute to making it more affordable.

SOLOMON: And what about the demand side? So, that was the supply side of the equation. What about offering this $25,000 assistance for first-time homebuyers? How do you see that?

MACGUINEAS: Right. Again, I think that will make it more affordable for those homebuyers. I'll put a couple caveats there, though. Oftentimes, we've seen with policies where the federal government is trying to subsidize things for individuals and families. They end up being priced into the good. That's why we see higher education, healthcare and housing, all have such high levels of inflation. So, when you subsidize them this way, sometimes the prices just become higher. I do think, however, this will have the effect of making things more affordable, but it is a four year very, very large tax credit, and the idea that it will just disappear after four years, I think, is not realistic.

We know Congress likes to extend things. That makes what will already be a very expensive credit, likely much more credit if it were to become permanent. And that's one thing we haven't talked about with any of these policies. They don't talk about any of the details of paying for them nearly to the extent about the details of the policies they want to put in place. They will be very expensive.

SOLOMON: And you mean on both sides of the aisle, both Trump and Harris.

MACGUINEAS: Well, that's interesting. So, I was talking about Vice President Harris right there and her ideas, the child tax credit, the EITC, help for housing, help for healthcare. All of those things they've said we will offset those costs and support many of the Biden tax increases. They have not been as specific.

When you're talking about former President Trump, it's interesting. He has much more so far, policies that will cost a lot of money. Those would make the deficit worse. But, he has also talked about some very significant higher new revenues through the tariffs that he is talking about. All told, none of these have been fleshed out yet. None of them are fully scored. But, both candidates, not surprisingly, we see this a lot in campaigns, are emphasizing all the things they would give away to taxpayers, new tax cuts, new spending, and they will have quite a hefty price tag that goes along with them.

SOLOMON: And then lastly before I let you go, turning to the price of groceries, a first ever federal ban on price gouging.

MACGUINEAS: Yeah. So, it's interesting Vice President Harris has this, again, this campaign -- suite of campaign proposals focusing on affordability. A lot of them are in regulatory changes, and without details, it is unclear how effective that will be, how much structured that will be. There is less talk about how you actually get overall inflation down, and more of a focus on this price gouging, which is an amorphous thing to get at, and it's not clear how effective they'd be able to be in those regulatory shifts.

SOLOMON: Is it -- does it sort of highlight that, actually getting inflation down? The body that's responsible for actually getting inflation down is not the White House. It's the Federal Reserve.

MACGUINEAS: It does. I mean, this is a very difficult topic, because inflation is on the mind of voters, and politicians want to talk about how they will improve it. The main job here falls to the Fed. We'll be hearing a lot from them this week at Jackson Hole. There are some things that lawmakers, Congress and the President can do, but they're the opposite of what they normally want to do. When you make things cheaper for taxpayers and voters, obviously that helps making those things affordable, but that additional demand actually turns around and pushes those prices back up. That's why inflation is such a difficult thing to get control of once you've lost control.

And so, making things cheaper by giving people more money to pay for them, ironically has the effect of actually making them more expensive through higher inflation, particularly if they add to the deficit. So --

SOLOMON: Yeah.

MACGUINEAS: -- the most progress here will come from the Fed and monetary policy.

SOLOMON: Yeah. It's really ironic, as you point out, and counterintuitive, but it is what it is.

Maya MacGuineas, great to have your insights and analysis today. Thank you.

MACGUINEAS: Thank you.

SOLOMON: Well, still ahead, a new Hezbollah attack in northern Israel, as Washington's top diplomat tries again to broker a Gaza ceasefire. We are live in Beirut. Plus, a new week of Ukraine's unprecedented offensive inside Russia. Hear what President Zelenskyy is saying about what Ukraine hopes to achieve. We'll be right back.

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[11:35:00]

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SCIUTTO: Welcome back. You are watching CNN Newsroom. I'm Jim Sciutto in Tel Aviv.

Returning now to our top story today, a last-ditch effort by international mediators to broker a ceasefire and hostage deal for Gaza. The U.S. Secretary of State, Antony Blinken, he is in back-to- back meetings today here in Israel. A source says his three-hour discussion with the Israeli Prime Minister, Benjamin Netanyahu, was constructive. However, Israel and Hamas, the two parties on either side of the table here, are blaming each other for putting up new block -- obstacles to an agreement. Blinken says it is time for everyone to stop making excuses and get it done. Mediators do believe that reaching a ceasefire is critical if a wider regional war is to be avoided.

Israel and Hezbollah, they exchanged fire yet again today across the northern border of Israel, which borders Lebanon, following an Israeli strike in southern Lebanon on Saturday, one of the deadliest since the October 7 Hamas terror attacks. Israel says its target was a Hezbollah facility where weapons are being stored. Lebanon's Health Ministry says at least 10 women were killed. This includes a woman and her two children. This sort of cross-border fire has been going on for months and months.

Our Ben Wedeman is following the developments from Beirut. Is it your sense, Ben, that the pace of this cross-border fire has picked up?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Certainly it does appear to be somewhat more intense over the last few weeks than it has been in recent months. But, for instance, today, we've seen six Hezbollah strikes on Israeli targets so far today, and many strikes by Israeli warplanes and drones on the other side. Hezbollah reporting two of its fighters were killed today. At this point, it appears the total number of Hezbollah fighters killed since the eighth of October is in excess of 400.

Now, this afternoon, also we heard Israeli warplanes for the first time in eight days breaking the sound barrier over Beirut, specifically over Beirut airport. They stopped, it seems, in the run- up to the talks in Doha. But, it appears that as tensions seem to be rising again, because there doesn't seem to be any perceptible progress, despite the somewhat rosy statements from U.S. officials in these talks and people are now once again bracing for the possibility that Hezbollah will make good, as it said it will make good, on its threats to take revenge on Israel for the killing on the evening of 30th of July of a senior Hezbollah commander. So, tensions rising once again, as it appears the U.S. diplomatic efforts are foundering once again. Jim.

[11:40:00]

SCIUTTO: Yeah. The region, as ever, a tinderbox. Ben Wedeman in Beirut, thanks so much.

Rahel, back to you.

SOLOMON: All right. Jim, thank you. We'll see you shortly.

Well, it has been nearly two weeks since Ukraine launched its surprise incursion into Russia. Ukrainian President Volodymyr Zelenskyy saying that the goal is to create a buffer zone inside Russia to protect the Ukrainian border. He claims that Ukrainian forces are establishing a stronger foothold and launched airstrikes that destroyed a second bridge used by the Russian Army. The Ukrainian military says that it controls 1,000 square kilometers of Russian territory. Now, while the fighting continues, India's Prime Minister now plans to travel to Ukraine. This comes just after weeks after Kyiv criticized him for hugging Russian President Vladimir Putin during a visit in Moscow.

And a luxury yacht sank off the coast of Sicily after being hit by a tornado early this morning. Sicily's Coast Guard says that at least one person was killed. Six others are still missing. Among those missing is British tech entrepreneur Mike Lynch. The yacht was anchored near the port of Porticello on Sicily. 15 people have been rescued, including one child. The yacht files under a British flag, and most of the passengers and crew were British. According to the fire brigade, the yacht's hull was bound 49 meters below sea by divers. The yacht's captain was among the rescued survivors.

Well, still to come, this is not the first time the Democratic National Convention has been held in Chicago. Still ahead, a look back at the chaotic 1968 convention in the Windy City. We'll be right back.

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SOLOMON: Welcome back. Protests and violent clashes with police marred the 1968 Democratic Convention in Chicago. Protests over the war in Gaza are expected at this week's convention. And the governor of Illinois tells my colleague Jake Tapper that law enforcement is prepared for any scenario.

(BEGIN VIDEO CLIP)

J.B. PRITZKER, ILLINOIS GOVERNOR: If there are troublemakers, they're going to get arrested and they're going to get convicted. But, the fact is that the vast majority of people who are protesting, and we've seen this before, are peaceful protesters. They want to have their voices heard. They're going to be heard, no doubt about it, and we're going to protect that.

(END VIDEO CLIP)

SOLOMON: Now, most Democrats very quickly lined up behind Vice President Harris once President Biden dropped out of the race. But, there are still a number of still uncommitted delegates that want answers from Harris over the administration's handling of the war in Gaza.

CNN's Donie O'Sullivan spoke to some of them.

(BEGIN VIDEOTAPE)

ABBAS ALAWIEH, MICHIGAN UNCOMMITTED DELEGATE: We've got 30 uncommitted delegates that are representing over 740,000 uncommitted voters nationwide who voted uncommitted as a pro-peace. anti-war vote in the Democratic primary.

DONIE O'SULLIVAN, CNN SENIOR CORRESPONDENT: This is a meeting of uncommitted democratic delegates here in Chicago on the eve of the Democratic National Convention.

ALAWIEH: -- that it's not sustainable for our own government to fund the mass killing of civilians.

[11:45:00]

JEREMIAH ELLISON, MINNESOTA UNCOMMITTED DELEGATE: Folks become delegates at their state party, and then they come to the national convention, and they're either committed to the candidate, to one of the candidates, or not. In our case, we're not committed because we haven't heard what we've wanted to hear. Looking for a ceasefire. We're looking for a strong commitment on a ceasefire. We're looking for an arms embargo for us to stop sending weapons that are contributing to the genocide there. ALAWIEH: I represent some of the over 101,000 voters in Michigan who

voted uncommitted as a pro-peace, anti-war vote.

LEXIS ZEIDAN, CO-CHAIR OF UNCOMMITTED NATIONAL MOVEMENT: Nobody wants to see Trump in November. We are a very anti-fascist movement. We are actually doing what we can to save the Democratic Party by saying, listen, VP Harris, there is a key base of over 730,000 anti-war voters who are telling you that we want to see you turn the page on Gaza (ph) policy and save Palestinian lives.

O'SULLIVAN: What do you want to hear from Harris in Chicago this week?

ALAWIEH: I want to hear from Vice President Harris, how it is that she is going to turn a new page on Gaza policy from the destructive and disastrous policy over the last 10 months to one that saves lives?

O'SULLIVAN: You got to meet Harris briefly in Michigan.

LAYLA ELABED, CO-CHAIR OF UNCOMMITTED NATIONAL MOVEMENT: We wanted to be able to speak to her directly, and the fact that Michigan voters would want to support her in the November election, but we can't do that right now, while our family members, our friends, our loved ones are being killed with U.S.-funded bombs. I told her that we need a policy shift that will save lives in Gaza. My community is telling me that they're losing tens and hundreds of their family members, and she said it's horrific. She has been incredibly empathetic. I do have to say that. More -- we have seen more empathy and compassion from Vice President Harris. But, that is not enough. Palestinian children can't eat words.

O'SULLIVAN: Is there more hope in this movement right now with Harris at the top of the ticket than there was when Biden was there?

YAZAN KADER, WASHINGTON UNCOMMITTED DELEGATE: I think that, in general, we would all say we're cautiously optimistic. There is a little bit more wiggle room we feel like with Vice President Harris. We've already seen her change the rhetoric a little bit, but words are not enough.

(END VIDEOTAPE)

SOLOMON: Well, the most eagerly anticipated speaker at the convention tonight will be the President. Joe Biden has spoken at the DNC many times before, but everyone understands that this will be an especially important appearance for the President and for his legacy. It's been just a few weeks since he decided to drop out of the race in favor of Vice President Kamala Harris. She will speak on Thursday to formally accept her party's nomination.

Joining us now with his thoughts on conventions past and present is CNN Political Analyst and Historian Julian Zelizer. Julian, always good to have you. So, you said in a piece this morning on foreign policy site that Harris should look to Obama's 2004 speech at the DNC. You say it's as relevant now as it was then, even when he was an unknown quantity nationally. In what ways, Julian, can she borrow from that speech? JULIAN ZELIZER, CNN POLITICAL ANALYST, & HISTORIAN & PROFESSOR, PRINCETON UNIVERSITY: Yeah. That was his famous keynote address. He was a state Senator, and he made a speech which we could call kind of an ode to progressive patriotism. He talked about the communal values of this nation, the things that bind us rather than tear us apart. He talked about the role of government in alleviating some of the pain and uncertainty that Americans face in the marketplace, and he talked about himself as a product of what the new America is, pluralistic, diverse and global. And I think all of those themes are very important and should be front and center for Democrats as they talk to the nation in the coming days.

SOLOMON: Julian, I imagine it's also just as easy to have a not so flattering moment at these conventions. You think about, as one example, the infamous Al Gore kiss in 2000. The context being that he was seen as a bit stiff, a bit robotic. Then you see that kiss. Some perhaps thought it was romantic. Others thought, even if it was romantic, it was really political. Talk to us about the potential to have a moment and a not so favorable way.

ZELIZER: Yeah. This happens all the time. These are televised events, and they could be a moment like what you just described with Vice President -- former Vice President Al Gore, where you look inauthentic and you play into stereotype, or it could be like 1968 where the visuals of protest and chaos, which as many people are thinking about today, become a way in which people understand what the party is about. So, it's not as if you can always control the image and control how people see it, and that's what parties try to deal with as these unfold.

SOLOMON: Julian, let's look back and listen to some of Biden's past appearances at previous DNCs.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT, UNITED STATES OF AMERICA: I am not at all offended that none of you have any idea who I am. It's time to elect John Kerry. I accept your nomination to run and serve with Barack Obama. With great honor and pleasure, I accept. We own the finish line. I accept this nomination for President.

(END VIDEO CLIP)

SOLOMON: Julian, it's sort of fascinating to look back at that sort of montage there. What are you going to be listening for tonight?

[11:50:00]

I mean, some might say it's incredibly complicated, I mean, personally and politically for him, I mean, as he gives this speech and then prepares to head off on vacation.

ZELIZER: Well, look, one, he gets a chance to define his legacy to a very big audience. So, we'll hear how he defines himself. Two, he will show and try to show that the party is unified and that there isn't tension between him and the Vice President, and finally, in defending his record and talking about unity, that is intended to be beneficial for Vice President Harris, because she is connected to this administration. You can't separate yourself. So, I think those are the three points we will see if he can achieve and do effectively.

SOLOMON: OK. Julian Zelizer, we will see. Thank you.

ZELIZER: Thank you.

SOLOMON: All right. And the stars will be out for the Democratic National Convention. Among the notable names expected to attend are John Legend and Julia Louis-Dreyfus. Multiple sources also tell CNN that while high-profile speakers are still being finalized, a slew of Hollywood celebrities will speak on the convention's main stage. Now, speculation has run quite rampant about two stars in particular, and they may be the biggest stars on the planet, at least for a certain subset, Taylor Swift and Beyonce, both women endorsing the Biden- Harris ticket in 2020. Spokespeople for the DNC and the Harris camp would not comment on the rumors. But, as they say, watch this space. Watch that stage and watch this space.

Tune in for live coverage of the Democratic National Convention in Chicago starting at 05:00 p.m. Chicago time; 6:00 p.m. Eastern Time; 11:00 p.m. London time, right here on CNN.

All right. Still to come for us, an exciting opportunity for stargazers. We'll tell you where and how to see a rare super blue moon.

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[11:55:00]

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SOLOMON: Welcome back. And before we go, one more thing. Stargazers across the world have a celestial treat in store. There were a combination of a supermoon and blue moon, peaks this afternoon at about 2:26 Eastern Time, one of four on tap in the coming months. Astronomers call it a supermoon when the moon's elliptical orbit brings it closer than usual to Earth, making it look larger and brighter. As for blue moons, they don't actually look blue, barely. It's a term that describes the second full moon in a month that has two full moons. Pretty cool.

All right. Thanks for being with me today. We know your time is money. So, thank you for spending some time with me. I'm Rahel Solomon live in New York. Stick with CNN. One World is coming up next.

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