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The Story Is with Elex Michaelson

Trump - U.S. Navy Escorts In Strait Of Hormuz - Happening Soon; Trump Says U.S. Bombed - Iran's Crown Jewel Kharg Island; Global Oil Prices Jump To Highest Level Since July 2022; Trump - U.S., Israeli Objectives - Might Be A Little Different; Displacement Crisis Grows As Residents Flee Southern Lebanon; Cuban President Confirms Diplomatic Talks With White House; Countdown To The 98th Annual Academy Awards On Sunday; San Jose Mayor Speaks On His Run For California Governor; Aired 1-2a ET

Aired March 14, 2026 - 01:00   ET

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

[01:00:00]

ELEX MICHAELSON, CNN HOST: -- CNN app. They'll also have a post-show on the CNN app as well.

And in our next hour here on the Segun Oduolowu, will be live on our set to make our Oscar predictions. We got a bet going. But we begin with the serious breaking news.

UNIDENTIFIED MALE: This is CNN breaking news.

MICHAELSON: Thank you for watching "The Story Is." I'm Elex Michaelson. It's top of the hour, 10:00 p.m., Friday night here in Los Angeles, 8:00 a.m. Saturday morning in Baghdad, Iraq. And we have breaking news just into us. We are getting new video showing smoke and small flames rising from a building near the U.S. embassy compound in Baghdad, Iraq. CNN has reached out to the U.S. state department for more information. Ivan Watson live in Hong Kong with what we know right now. Ivan?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hi there, Elex. We just know some preliminary details right now. Iraqi security sources telling Reuters that some kind of missile attack did hit the U.S. embassy in Baghdad. We don't know what part of that embassy has been struck and don't know about any possibility of casualties. No confirmation of any information of that sort yet. And so we'll bring it to you as we get it.

The fact is that throughout the last two weeks, U.S. diplomatic facilities around the region have repeatedly come under attack, U.S. military installations as well. The U.S. embassy in Baghdad is located within the heavily fortified green zone in the central site of the city, which is home to government Iraqi government buildings and other embassies as well. And over the course of the last two weeks, on more than one occasion, there have been angry crowds that have gathered that have sought to approach that embassy and that had been kept back.

The U.S. state department has ordered the closure of some embassies in the region, such as Riyadh in Saudi Arabia after it was repeatedly targeted by drones. The U.S. embassy in Oman, for example, the non- essential and emergency staff have been ordered to leave, and we've seen similar moves from other diplomatic locations across the region as well. And Iraq, which is Iran's neighbor to the west has gotten increasingly bloody. There was a French soldier killed yesterday in some kind of a strike on a French military base in the north of the country. You had a U.S. tanker plane, a KC-135 that went down not we're told by CENTCOM due to friendly or hostile fire with all six crew members killed on board. It crashed in Western Iraq, and that was announced on Friday. So this is also becoming very clearly another front in this rapidly expanding regional conflict, Elex.

MICHAELSON: That is true, Ivan. Thank you. We're just getting this information in. If we get more information, we will go back to Ivan. For now, though, we go from Iraq to Iran. And President Trump saying that the U.S. Navy will soon intervene in the critical Strait of Hormuz, where the flow of oil has been effectively paralyzed because of the war with Iran. The President also says the U.S. bombed "Every military target on Iran's Kharg Island, which handles nearly all of the country's crude exports." Afterwards, state media said Tehran threatened retaliatory strikes on Gulf facilities owned by oil companies that cooperate with the U.S. or have American shares.

President Trump said he spared Kharg Island's oil infrastructure, but warned it could get wiped out if Iran continues blocking ships from getting through the strait.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT, UNITED STATES OF AMERICA: Their navy is gone. Their air force is gone. Most of their military is gone. Their big threat is gone in every way. They have no radar. They have no anti- aircraft weapons. For the most part, weapons and for and definitely, they have no way of determining what they call visibility. So just about everything is gone.

(END VIDEO CLIP)

MICHAELSON: A senior Iranian official tells CNN that Iran is considering allowing a limited number of oil tankers to pass through the Strait of Hormuz, but only if the oil cargo is traded in Chinese yen. Iranian Foreign Minister who was out at a rally today, that is notable. They felt safe enough to be out on the public streets, talked about it here.

(BEGIN VIDEO CLIP)

ABBAS ARAGHCHI, IRANIAN FOREIGN MINISTER (translated): Oil prices are on the rise, and this is the result of Israel's and America's actions. They must be held accountable.

(END VIDEO CLIP)

MICHAELSON: As global markets closely watch the situation in The Middle East, oil prices have now hit their highest level since July of 2022. CNN's Jeremy Diamond has more now on the U.S. attack on Kharg Island. [01:05:00]

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, it is a hugely significant island, and there's a reason why we haven't seen the United States or Israel target this island until now. And even now with these initial U.S. military strikes still avoiding hitting the oil infrastructure at this island. I am learning a little bit more about what exactly the United States did strike on Kharg Island. This is from a U.S. military official I spoke with just a few minutes ago. They said that this was a series of wide scale strikes on this island, but strikes that use precision munitions to avoid hitting the oil infrastructure there.

Instead, I'm told that the targets included a naval mine storage facilities, missile storage bunkers, and other military infrastructure on the island. But there's no question that President Trump's military action on Kharg Island tonight is intended to send a message to the Iranian regime. A very clear threat here that the United States is willing to strike that oil infrastructure should Iran not change its posture as it relates to the Strait of Hormuz. But I think we've really need to consider what the impact of that actually would be because should the United States strike, the oil infrastructure on Kharg Island, you're going to see a series of short and long-term ramifications for that.

Experts have predicted that it could send oil prices which are already at over $100 a barrel up to a $150 a barrel, because of the fact that not only does Kharg Island produce a process 90 percent of Iran's oil exports, but Iran's global oil supply amounts to about 4 percent of the global oil markets. And in addition to that, Iran could escalate even further by striking oil infrastructure targets on the other side of The Gulf in countries that are allied with the United States. We've already seen them carry out a very limited series of strikes on oil infrastructure in some of those countries like in Bahrain and Kuwait, and so obviously they could escalate even further.

And then there's the long-term question here as the United States and Israel are clearly still pursuing this ultimate goal of regime change, what happens to the Iranian economy, even if the regime does change, if you destroy and dismantle, something that is really the lifeblood of the Iranian economy? And so all of that has to be considered as President Trump is threatening to go even beyond what he has done tonight, which is strike only the military targets on Kharg Island and now threatening to go after the oil infrastructure as well.

MICHAELSON: Jeremy Diamond, thank you for that reporting from Israel. Meanwhile, President Trump admitting that the U.S. and Israeli objectives in Iran quite might be a little different. His comments come as the war enters its third week.

That is the sound of warning sirens in Tel Aviv Friday where Jeremy just reported from. Israeli officials say Iranian cluster munitions exploded at multiple areas in Central Israel. And Israel says it continue to strike Iran into Friday night as the death toll surpasses 2,000 people. Sources tell CNN that the Pentagon is sending a rapid response marine unit to the Middle East. It's not yet clear how the marine expeditionary unit would actually be utilized, but the units, which typically comprise about 2,500 troops, could help to support evacuations, amphibious missions, or other contingencies.

Earlier, CNN's Kaitlan Collins spoke with Former U.S. House Republican, Marjorie Taylor Greene, of course, had a very public falling out with Donald Trump, and who said that Americans did not vote for war with Iran.

(BEGIN VIDEO CLIP)

MARJORIE TAYLOR GREENE, FORMER U.S. HOUSE REPUBLICAN: These are 13 lives that that I believe should not have been lost. This was -- this war is not something that that Americans voted for in 2024. As a matter of fact, we voted for the opposite. We voted for no more foreign wars, no more regime change. And we were told by many members in the administration throughout the campaign J.D. Vance, Tulsi Gabbard, and others, that they believed that going to war with Iran would be a terrible idea.

It was something that Charlie Kirk himself had said over and over again. And Donald Trump, President Trump, I voted for him three times, fought for him to become President, and I still want him to be successful. But he told Americans for over 10 years and even longer that that he thought foreign wars and regime change was really a bad direction for America to go in, and we trusted and believed him that we wouldn't be doing this. But this was an unprovoked war, and Israel pulled us into it, pulled America into it. And so those are 13 lives, that should not have been lost.

(END VIDEO CLIP)

MICHAELSON: Joining me now live is CNN Senior Political Analyst and Bloomberg Opinion Columnist, Ron Brownstein.

[01:10:00]

Ron, welcome back to "The Story Is."

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Good to be with you.

MICHAELSON: So we see this real schism in MAGA world. I mean, Marjorie Taylor Greene already had broken with Donald Trump before this war, but this idea of America First is something she's been talking about for many years and something President Trump has been talking about for many years. What are you seeing in terms of the Republican base right now when it comes to this war?

BROWNSTEIN: Well, look, for the ranking file Republicans, they have shown that they're going to follow Donald Trump almost any direction that he goes. We still have enormous support for this war among Republicans in polling even as big majorities of independents and Democrats oppose it. But what I think all of these voices do, and Marjorie Taylor Greene is hardly alone. I mean, there are a lot of voices on the right influential in the MAGA coalition, people like Joe Rogan who are important in enlarging that coalition, who are raising questions about the war and as she did arguing that this is really more in the interest of Israel than in the interest of the U.S.

I think what all of this does is just kind of reinforce the sense that as I felt from the beginning, that Trump is on a very narrow ledge in this conflict. I mean, we have not had a military conflict start with this level of public opposition. And I think as long as the cost to the country seem manageable, the Republican base is not going to turn on him, and therefore, Republican elected officials are not going to turn on him. But any kind of cost on a sustained basis, and I include high gas prices in that, I think are is going to make even his base very restive given how little buy in there was from the beginning on the value of doing this in the way Americans see it.

MICHAELSON: Well, and there was no real attempt to get buy in. Usually when you go into a war, you would explain the process of why you would do it. You would maybe ask Congress to declare war, which is what the constitution says you have to do. You would hold a Oval Office address before you go into the conflict to try to explain to the American people your case. I mean, he held the State of the Union the week that he launched this and didn't really even talk about it. Your column, though, gets -- go ahead. Yeah.

BROWNSTEIN: Yeah. I'm saying that -- you're right. That is such an important point. I mean, I think the way he went to war was as revealing as that he went to war at all. It really reflects his conception of the presidency and his belief that he is essentially in functionally beyond almost any reach of democratic accountability. It's understandably feels that way. The Republican majority in the Congress has not been willing to challenge him on almost anything. The Supreme Court more often than not has agreed with what he wants to do.

In January, he said to The New York Times, the only constraint he sees on his use of force is his own morality. But I think he is kind of bearing the consequences of not making any effort. I cannot -- you cannot find a precedent, I don't think where a President has taken the country to war with less effort to explain or even persuade the country why this was something to do. It felt as though he viewed that as perfunctory, that that winning the consent of the governed, was something that was no longer necessary in his view of the presidency, and I think that has compounded the risk he faces for any consequences from this war starting with higher gas prices.

MICHAELSON: Well, and you talk about that in your column on Bloomberg. Let's put the title up on the screen right now, which you suggest that, Trump's Iran war will compound his affordability woes. That word affordability, which Donald Trump has mocked over and over again, but what it really means to the average person is does the stuff that I buy cost more? And that has real political consequences for Republicans at the midterms.

BROWNSTEIN: Oh, look. I mean, in his first term, his approval rating on the economy was around 50 percent or more, almost always after the first few months, and it was almost always higher than his overall job approval rating, which meant that it was a floor lifting him up.

In the second term, it's a complete reversal. His ratings on the economy are usually at 40 percent or below. Specifically on inflation, they are down to around 35 percent or below typically, and they are lower than his overall approval rating, which means they are an undertow dragging him down. So you start with the perception of a majority of the country that he's failed to make sufficient progress on the problem they elected him above all to solve, which was their cost of living.

And then you launch a war that most Americans say they do not support and they do not understand why you have done it that has the effect of compounding the problem they're frustrated you have not done more to solve in the first place. Now, I'm not a highly paid political strategist, but that doesn't sound like a formula to me to kind of maximize your chances in the midterm election. And as I say, I mean, at this point, Republican voters are with him, so Republican elected officials are with him.

[01:15:00]

But I don't know how many weeks of elevated gas prices they will sustain given how little interest there was in doing this from the country in the first place, even if they applaud the performance of the military and believe that degrading Iran's military capacity is a worthwhile goal.

MICHAELSON: Well and it is not technically Donald Trump's name on the ballot in the midterms, and maybe he doesn't really care. Ron Brownstein, thank you so much for your insights once again. We'll be back with more of "The Story Is" right after this.

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MICHAELSON: Lebanon's capital is reeling from the latest round of Israeli strikes as the fighting shows no signs of letting up. The Israeli military has targeted an area of Beirut considered a Hezbollah stronghold.

[01:20:00]

Israeli planes have also dropped leaflets over the city. They contained a message from an Israeli intelligence unit in charge of recruiting agents. The UN says more than 800,000 people have already been internally displaced because of the fighting. But some experts say the number could soon reach a million as Israel raises the prospect of a bigger ground operation in the South. For more, we are joined from Beirut by Basma Alloush. She is the Deputy Director of Public Affairs and Communications at the International Rescue Committee. First off, thank you for the good work that you are doing. What is the greatest need right now?

BASMA ALLOUSH, IRC DEPUTY DIRECTOR, PUBLIC AFFAIRS AND COMMUNICATIONS: Thank you so much for having me. As you said, we're almost reaching a million people in need. And to give you a perspective, many of those people fled with very short notice, barely were able to grab the basic essential items with them. And so right now, the needs on the ground, people need everything from mattresses to pillows to blankets to prescription medication, things that we take for granted usually. People couldn't even remember or didn't even have the ability to think about. They just bear barely grabbed their children and fled for their lives.

So right now, the needs are immense across Lebanon, and we're trying our best to help people adjust to their new realities.

MICHAELSON: Where are all these people that are displaced supposed to go?

ALLOUSH: So that's something that we're really grappling with in Lebanon right now. As you said 800,000 people displaced. There's only a 130,000 of those that were able to seek shelter in these collective sites, these schools that were converted into shelters, stadiums, things of the sort, these public institutions that are now housing people.

Otherwise, I drove across Beirut two days ago, and people are in tents. People are sleeping out in the open. It was raining last night, and these tents didn't look waterproof to me at least. And so I can only imagine? I saw people sleeping in their cars. People are -- have it creating these makeshift arrangements where they're renting out trucks and converting the back of the truck into putting mattresses so that they it can be a space for them and their families to sleep.

Others are trying, they're seeking shelter with relatives, with family members. Many can't afford rent. And it seems like people are really struggling to find sustainable housing, while this conflict continues.

MICHAELSON: What can our viewers do to help? And what's the strategy to help all these people?

ALLOUSH: Absolutely. So right now, there is a scale up, an increase in the humanitarian response. The International Rescue Committee and humanitarian organizations are really trying to help people with the most basic needs, and help them really adjust to their new realities.

The easiest way and I think the most impactful way for viewers and Americans to show solidarity is to help support these humanitarian efforts, support the International Rescue Committee and other humanitarian organizations, and really stand in solidarity with the Lebanese people and make sure that they're not forgotten.

MICHAELSON: Basma Alloush, thank you so much again for what you are doing. It is so, so crucial. We'll be right back. When we come back, we take you to Cuba and Venezuela. Stay with us.

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[01:25:00]

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MICHAELSON: An update on our breaking news video here from Baghdad, Iraq where smoke and small flames have been seen rising from a building near the U.S. embassy compound in Baghdad. It's unclear exactly what happened. CNN has reached out to the state department for more information. Cuba's President has confirmed for the first time that the U.S. government and Cuba have been holding talks. Cuba is facing a growing energy crisis after the U.S. imposed a blockade on oil shipments to the island. The Cuban President says no fuel has arrived on the island in three months. President Trump has said that the Cuban government is desperate to make a deal while also predicting that the regime would soon fall.

Joining us now from Caracas, Venezuela is journalist Eyder Peralta, an international correspondent for NPR. Welcome to "The Story Is" for the first time.

EYDER PERALTA, INTERNATIONAL CORRESPONDENT NPR: Hey, Elex.

MICHAELSON: We have seen protesters in the streets of Cuba, increasing political pressure. How is the blockade there exerting and exacerbating pressure on the Cuban government?

PERALTA: I mean, they've basically run out of oil. They have -- they've been installing solar panels and solar power, and it's just not enough to keep the lights on. And when you can't keep the lights on, people will be very unhappy, and that's what we're seeing in Cuba right now.

And today was a big day because the President, Miguel Diaz-Canel came on television, and he confirmed what the Trump administration has already been saying, which is that they are holding talks with the United States government to try to come to what he said is a peaceful solution to their differences. And he didn't details about what these talks involved and he said that they were very sensitive and that he wasn't going to give details about what these talks are about.

[01:30:00]

But I think what it tells you is that the mounting pressure from the United States is really getting to the Cuban government, and they're looking at Venezuela, right? What happened January 3rd, the extraction of Nicolas Maduro from here, President Nicolas Maduro from here. And they're feeling the pressure, and now they're coming to the table with the United States.

MICHAELSON: You've reported on the ground in Cuba. You know so many people that are there. What's it like on the ground in Cuba, and how different is it now than maybe even a few months ago?

PERALTA: It's completely different. I've been in Cuba for many years, and especially during the opening of the Obama era, it was vibrant and thriving, and now it just feels abandoned, and people are cooking with wood in Havana, right? They can't get medicines where they go. The hospitals when they go to the hospitals, the doctors tell them, in order for me to treat you, you're going to have to go buy this medicine someplace else.

And so people are struggling with day-to-day things, including things like finding eggs. Sometimes you just can't find eggs in Havana. And so it's a very precarious situation there, and people are obviously looking for a change.

MICHAELSON: So Cuba likely is going to be the next conflict for the United States. Obviously, Iran is the conflict right now. The last conflict the United States got involved in was in Venezuela, which is where you are right now, Caracas, Venezuela. What's it like in the streets there? You say that it seems like the folks may be ready for transition. What do you mean by that?

PERALTA: I think what's odd is that it's very surreal. The same rhetoric Venezuela has had for the past more than two decades, which is Yankees go home. You hear it on the streets. There's posters on the streets that say bring our kidnapped president home. It feels like everybody is living in a different universe. It's like a multiverse here, right? The government is still sort of talking the same talk that they have, but at the same time, they're sitting down with American cabinet secretaries. They're cutting deals with American oil companies.

And then also what's happening on the streets is, I've just been hearing a lot of people who say, we want to move forward. The situation here is very desperate. People are having a really tough time living because the Bolivar has devalued. It's impossible or very hard to get dollars here, and they just want a normal life. And when they tell you they want a normal life, they also say that they're willing to -- they don't really care who sits in Miraflores, who sits at the presidency as long as things get better here.

MICHAELSON: Well, we hear so much about the politicians, but we don't hear that much about the people. So we appreciate your reporting on NPR and with us tonight, to shed some light on what the everyday person is going through in both Cuba and Venezuela. Thanks so much for being here and sharing their stories.

PERALTA: Thank you for having me.

MICHAELSON: More of "The Story Is" right after this.

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[01:35:00]

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MICHAELSON: We are counting down to the start of Sunday's Academy Awards. The biggest buzz is about two of the movies that are competing for the top prizes. They are Sinners, starring Michael B. Jordan, which was nominated for record breaking 16 awards, and One Battle After Another starring Leonardo DiCaprio, which is also up for more than a dozen Oscars. We should note both are Warner Bros. movies, the studio owned by CNN's parent company, and now apparently going to be CNN's parent company for a while.

So let's get into this. Emmy-Award Winning Entertainment Journalist, Segun Oduolowu is back with us. Good to have you here.

SEGUN ODUOLOWU, EMMY-AWARD WINNING ENTERTAINMENT JOURNALIST: Good to be hear.

MICHAELSON: Let's put up all the nominees for best picture. Remember, this is the most nominees where they put into one category. So we got Frankenstein, Hamnet, F1, Sentimental Value, Sinners, and we continue with Marty Supreme, One Battle After Another, Begonia, Train Dreams, and The Secret Agent. But really, it seems like it's a two horse race, right?

ODUOLOWU: It's a two horse race, but it could be three. It's really Hamnet, One Battle After Another, and Sinners. And it's those are those are the three if you are a betting person, I'm going with Sinners. But also Paul Thomas Anderson, who's the Director of One Battle After Another, has never won for Best Director. It'll be very interesting to see if maybe they nominate this movie for him.

I think it's Ryan Coogler. I think it's Sinners. Sinners is what everyone's talking about. That's got the momentum.

MICHAELSON: Which is kind of wild because Sinners was out so long ago, and yet it seems to have had kind of a resurgence again. So the most interesting category of the entire Academy Awards is probably best actor.

ODUOLOWU: Yeah.

MICHAELSON: Let's put this --

ODUOLOWU: Chalamet vs Michael B. Jordan.

MICHAELSON: Let's put this up. We got Ethan Hawke, Michael B. Jordan, Leonardo DiCaprio, Timothee Chalamet, and Wagner Moura. How do you break this one down?

ODUOLOWU: Oh, I've said this on air with you, Elex. If Michael B. Jordan doesn't win, we march at dawn, brother, OK. He played three roles, Set of Twins and a vampire guy.

MICHAELSON: Yeah.

ODUOLOWU: He should win, but Wagner Moura won at the Golden Globes. Timothee Chalamet won at the Golden Globes as well though the -- different categories.

MICHAELSON: Different categories.

ODUOLOWU: Different categories they were split. Michael B. Jordan won at the actors award, formerly Screen Actors Guild. So I think it's got to be Michael B. Jordan. I'm expecting it to be Michael B. Jordan. I would be shocked if it's not him. I really would.

MICHAELSON: It was pretty cool at the actors award how much the actors seemed to really get into it. And traditionally, that award show is the best predictor because it's got the biggest share of people that actually vote for the Oscars. So it's kind of like a coming attraction. ODUOLOWU: Well, because the two award shows overlap with the people that vote. So the people that vote for the Academy Awards are also in the same camp that vote for the actors awards.

[01:40:00]

That overlap makes you think it's going to be Michael B. Jordan.

MICHAELSON: And when Viola Davis presented it to him, she had a very similar mindset to you.

ODUOLOWU: Yeah. As she should. Sister Viola, don't get it wrong.

MICHAELSON: It was interesting. So the actress category doesn't seem to be quite as interesting. Jessie Buckley, Rose Byrne, Kate Hudson, Renata, Emma Stone all nominated, but it seems like Jesse Buckley is on one of those rides where she wins every single award.

ODUOLOWU: So Jesse it's a three person race with Rose Byrne, Jesse Buckley, Emma Stone. Emma Stone's vying for her third Oscar. Jesse Buckley is the favorite, and Rose Byrne is kind of the dark horse. It's a comedy. It -- comedies don't always do well, but Emma Stone -- I'm sorry. She won at the Golden Globes. Rose Byrne won at the Golden Globes. Again, different category. The Oscars puts drama and comedy and everything together. I think it's Buckley. Although, if Emma Stone go goes and gets her third, I wouldn't be surprised, but I think it's Buckley.

MICHAELSON: Yeah. And of course, Buckley acting in Hamnet, which is the exact kind of movie that people in the academy like, were you as bored by Hamnet as I was?

ODUOLOWU: No, because --

MICHAELSON: I couldn't make it through it.

ODUOLOWU: Hamnet gave me so much Shakespeare and love and there was -- I cannot see Hamnet. This is the stuff -- Hamnet is the type of movie that the Academy Awards love.

MICHAELSON: Loves.

ODUOLOWU: Love to award. They love this whole, oh, where it's art and, oh, the tortured story of -- they're Shakespeare.

MICHAELSON: -- crying and parenting.

ODUOLOWU: I'm done with it. If I see him look, I love Chloe Zhao. I think she nomads. She directs beautiful movies. I don't want to see her on that stage talking about Hamnet. It's -- I'm sorry. It's not time for Hamnet. It really isn't, OK.

MICHAELSON: It'll be interesting because the academy is a little different who's voting for it now.

ODUOLOWU: Yeah. MICHAELSON: Than who voted for that kind of award when every year it was the white British person who could --

ODUOLOWU: Is that your way saying that the Academy's a little spicy?

MICHAELSON: It is a little spicy now.

ODUOLOWU: Well, if that works.

MICHAELSON: So a lot of people have their Oscar pools, and they make their picks. So I guess we're going to have our Oscar pool and make our picks.

ODUOLOWU: Are we going to do a gentleman's wager.

MICHAELSON: We got to do a wager. I don't know what we're betting, but I'm going to put my picks up. These are the ones I think will win. And I sort of spread it out. Best picture Sinners, directing Paul Thomas Anderson, best actor Michael B. Jordan, best actress Jesse Buckley, supporting actor Sean Penn, supporting actress Amy Madigan. I think they spread it out a little bit. There is a possibility that Sinner sweeps. It's their night, and they kind of win everything. But I sort of gave it. What did you do?

ODUOLOWU: Well, you played it really down the middle. I agree with you. Best picture should be Sinners.

MICHAELSON: Let's see your -- let's see your pictures. Put them up on the screen.

ODUOLOWU: Do we have my -- do we have my pics? Yeah. Best picture is Sinners, Director Ryan Coogler, best actor Michael B. Jordan, best actress Jesse Buckley, best supporting Sean Penn, though I'm pulling for my man Delroy Lindo. I just don't think that they're going to get it. And then best supporting actress Teyana Taylor, who won at the Golden Globes.

MICHAELSON: Yeah.

ODUOLOWU: That's what I think it's going to be. Gentlemanly bet, if I lose, I'm willing to take a, like, pie to the face on air with you.

MICHAELSON: OK.

ODUOLOWU: And if I win, we'll switch seats, I'll interview you in our segment on Monday.

MICHAELSON: OK.

ODUOLOWU: You like that?

MICHAELSON: That sounds good.

ODUOLOWU: That will be fun.

MICHAELSON: I don't lose either way. ODUOLOWU: Yeah. You don't lose.

MICHAELSON: I would love to be the guest.

ODUOLOWU: There you go. You throw a pie in my face. I honestly, I think this Oscars is going to be very interesting. Conan O'Brien is hosting for his second year in a row, and you've got movies that everyone is talking about. You've got actors that people want to see.

MICHAELSON: And a lot of movies that people have seen, which is great. Segun Oduolowu. Thank you. On Sunday, CNN variety are live on the red carpet for Hollywood's biggest night. Be sure to tune in 4:00 p.m. the afternoon Eastern 1:00 p.m. pacific time on CNN and TBS. You can watch it on the CNN app. I'll be right back.

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[01:45:00]

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MICHAELSON: Tonight, California Governor Gavin Newsom is Miami as part of his National Book Tour. The primary election to replace him as California Governor ends in June. Now one Democrat running for California Governor says the state needs major changes and is actually running against many of Newsom's policies. We joined him recently as he got some high profile help.

(BEGIN VIDEO CLIP)

ELEX MICHAELSON, CNN HOST: San Jose Mayor Matt Mahan, a Democrat running for California Governor, tours Pacific Palisades slowly recovering from last year's fire that burned nearly 7,000 structures here.

UNIDENTIFIED MALE: But what do you think Mr. Matt Mahan, now that you've actually seen for yourself?

MATT MAHAN, MAYOR, SAN JOSE: It's absolutely devastating.

MICHAELSON: There's some construction underway, but still so many empty lots. Residents frustrated by insurance and permitting challenges.

MAHAN: People have a right to be incredibly frustrated with the pace of recovery.

RICK CARUSO, BILLIONAIRE DEVELOPER AND ENTREPRENEUR: Family oriented neighborhood code.

MICHAELSON: Mahan's tour guide is Rick Caruso, a billionaire developer who considered running for Governor himself, but ultimately decided to back Mahan.

CARUSO: It's all right. I'm just going to give you a full draw of endorsement. MICHAELSON: This is their first joint TV interview. So, Rick, why Mayor Matt?

CARUSO: Well, one is he can win.

MICHAELSON: Mahan is a married father of two, who grew up in the farming town of Watsonville, California. He was elected student body President at Harvard, became a tech CEO, served on the City Council of San Jose, and then was sworn in as Mayor in 2023.

CARUSO: He's middle of the road. He's practical, and he just cuts through the performative baloney that we all see out there.

MICHAELSON: In 2024, Mahan helped to lead efforts to toughen California's law on retail theft and drug related crimes.

CARUSO: Mayor Matt Mahan.

MICHAELSON: In late January, he entered the Governor's race relatively late. The biggest issue in the state, everybody admits is affordability, right? So what is one specific thing that you're going to do as Governor to make my life and everybody else's life cheap?

[01:50:00]

MAHAN: Yeah. I mean, the biggest thing is reduced regulation, and you see that show up in housing costs, energy costs, health care costs. We are the most overregulated state. We just keep passing more bills, more laws, more process, and we get less of what we need.

MICHAELSON: Caruso are to introduce Mahan to Southern California communities like the Palisades.

MAHAN: So I'm here to mostly listen and learn.

MICHAELSON: Mahan hosting a roundtable here with fire survivors. As we have a lot of work ahead of us. And meeting with the media. So what is the biggest thing that you could actually do as Governor, an action item to fix the situation here in the Palisades?

MAHAN: Well, I think the single biggest thing is to get those FEMA dollars to flow.

MICHAELSON: California Governor Gavin Newsom asked President Trump and Congress for nearly $34 billion in aid, which hasn't come. What has come, President and the Governor often trolling each other online.

CARUSO: I can say this because I'm not a candidate. We need our elected officials getting out of the business of performative politics and name calling and work together.

MICHAELSON: Are you suggesting that the Newsome sort of taunts of Trump is not helpful when you're trying to get billions from him.

CARUSO: I mean, I couldn't imagine running my business with people I depend on doing business with, calling somebody a name and then calling them up, hey, you want to go do business together?

UNIDENTIFIED MALE: I want to be its fighter protector against the President.

MICHAELSON: The top polling Democrats in the race often focus on fighting President Trump. But Katie Porter recently holding up a whiteboard at the party's convention reading F Trump. Mahan says there's a more effective way to push back when needed.

MAHAN: I'm not going to spend my time just trying to be the loudest I can be in being anti something. We also have to be for something. And in addition to challenging President Trump where we disagree, where I think the law is on our side, I will also say we have a shared responsibility to rebuild Altadena and the Palisades.

MICHAELSON: Mahan recently visited Downtown LA's Skid Row, the epicenter of California's homelessness problem. What was your big takeaway from that?

MAHAN: It's a massive public policy failure, and it's completely unacceptable.

MICHAELSON: In San Jose, Mahan is focused on expanding interim housing and even proposed jailing unhoused people who repeatedly refuse shelter.

MAHAN: So we will use the court system, the drug courts, the mental health courts, to ensure that we save your life for your good and the good of the broader community. I want to organize a movement of people.

MICHAELSON: On this day, Mahan and Caruso are speaking to tech leaders at the upfront conference in Hollywood. There are some concerns from folks on the left that feel like you're too close to the billionaires, too close to Silicon Valley, and that their jobs are not going to be protected in this era of AI. What do you say to them? What does AI regulation look like to you?

MAHAN: Well, first of all, while I have had support from tech, it would be a little strange if the Mayor of Silicon Valley didn't have the leading employers and industries in the city think that he'd done good jobs.

MICHAELSON: The City of San Jose trains its employees on how to use AI to help their careers.

MAHAN: We cannot just put our head in the sand and pretend that AI isn't happening. If we do that or if we try to push the industry out of California, it will still happen, but it'll be happening to us, and we'll lose the ability to shape it.

MICHAELSON: As per Caruso, there are a lot of people that are wondering about your future. Back in early January, he talked with us about running for either California Governor or LA Mayor.

CARUSO: The reason I will run is because I truly believe in public service.

MICHAELSON: You said when I run.

CARUSO: Yeah.

MICHAELSON: And then you didn't run.

CARUSO: Yeah.

MICHAELSON: And there were a lot of people that thought you were running. So what is the bottom line reason of why you didn't run?

CARUSO: Well, there's never any one reason. But the reason that weighed on me the most was the benefit to the family in terms of, is there a risk to the family and the welfare of the family. And politics has become a lot angrier in the last few years than when I ran last time. And so, again, I kept saying to myself, the goal was to make change, not to get a job. And then when I really thought about it, who can best lead?

MICHAELSON: In 2022, Caruso ran and lost to LA Mayor Karen Bass, who's currently running for reelection. Who are endorsing for mayor?

CARUSO: That's a good question. I haven't figured that one out yet.

MICHAELSON: Reality star Spencer Pratt is running, as is LA City Council Member Nithya Raman, a democratic socialist. Bass' main opponent is from the left. I'll part of you that feels guilty that that is that way?

CARUSO: I'm certainly going through a grieving process. Yeah. I do. I love this city. And so I worry about the leadership in this city. I worry about the direction of the City Council. And, of course, I do. And I will continue on the private sector, which I said publicly, to do everything I can seven days a week to help the city that I love. And I'm going to.

[01:55:00]

MICHAELSON: As for the governor's race, Caruso was all in on Mahan. Real concise, what would your closing argument be?

CARUSO: California has an opportunity to elect somebody who's got a proven track record of making the quality of life of people better.

MAHAN: The best resistance is to deliver results. It's to demand that our government do better before we go back and ask people again and again to just give more. It's about accountability.

(END VIDEO CLIP)

MICHAELSON: So Mahan just recently started running TV ads, but he's got a lot of work to do and not a lot of time to do it. No major poll has shown him cracking double digits so far, but the percentage of undecided voters is huge in this race. There is no clear front runner, but the debates are starting real soon. And if Mahan's numbers don't go up real soon, he may not qualify for those debates.

Thanks for watching this week. I'm Elex Michaelson. Really appreciate you being with us. We'll be back on Monday for more of "The Story Is."

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