Return to Transcripts main page

WOLF

July Report: Jobless Rate at 16-Year Low, Unemployment Falls to 4.3 Percent; Police: Fraud Investigation Focuses on Israeli P.M.; Russia Bigger Role in Fight Against ISIS in Syria; North Korean Discussions Coming at Asian Summit; Carolyn Warmus Story Airs Tonight. Aired 1:30-2p ET

Aired August 4, 2017 - 13:30   ET

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


[13:30:00] WOLF BLITZER, CNN ANCHOR: For six months, one million new jobs were created here in the United States, which is impressive. The last six months of the Obama administration, one million jobs were also created. The argument you hear from Democrats, this president inherited a very strong economy?

STEPHEN MOORE, CNN ECONOMICS ANALYST: You know, he inherited an economy that was OK, but it wasn't great. We had low growth. If the economy had been as strong as some of my Democrat friends say it is, I think Hillary would be president today. The economy, in the last year of Obama, grew 1.5 percent. Not a good growth rate. It's gone up, last quarter, to 2.6 percent. Still not the 3 percent Trump wants us to get. He wants us to get to 4 percent.

I would say this. For those investors listening to the show, wondering if this -- remember, we also have a bull market in stocks right now. The thing that could, you know --

(CROSSTALK)

BLITZER: Going on for years.

MOORE: It has.

BLITZER: Remember, 2008, 2009, what was it, like 7,000, the Dow Jones. Now it's closing above 22,000. But during the seven, eight years of the Obama administration, it went up. It more than doubled itself.

MOORE: It did. But don't forget, it went up 700 points the day after the election. Investors like the Trump agenda. The point I was going to make --

(CROSSTALK)

BLITZER: They like it because, what, he's deregulating, wants to cut taxes. Is that what they think?

(CROSSTALK)

MOORE: Yes, I think the deregulating and tax cuts. And also because he has more of a pro-business attitude. The point I was going to make is, if this economy will continue to grow, the Republicans now have to get this tax cut done. You know, if they strike out on tax cuts like the way they have on Obamacare, I think a lot of those gains in the stock market, you might see a sell-off. There's a warning flag to investors out there. Republicans just have to get this done. And every employer I talk to say we're waiting for the tax cut. We're ready for it. Is it coming? We'll see in the months ahead.

BLITZER: When is it coming?

MOORE: Hopefully, by Thanksgiving. But Republicans --

(CROSSTALK)

BLITZER: Do you think the votes are there in the House and Senate?

MOORE: If you'd asked me three months ago, I'd say absolutely yes. I'd say, right now, 50/50. There's only 52 Republicans in the Senate. Democrats put out a statement last week, Chuck Schumer, they're not much interested in cutting rates. That means likely it will have to be a Republican-only tax cut. That's a heavy lift when Mitch McConnell can only lose two Senators.

BLITZER: Numbers aren't very positive.

(CROSSTALK)

MOORE: They're numbers. Hooray for America.

BLITZER: -- for the American people.

Thanks very much, Stephen Moore, for coming on.

MOORE: Thanks, Wolf.

BLITZER: Coming up, the Israeli Prime Minister Benjamin Netanyahu facing very serious allegations of corruption. And now one of his top staffers will testify against him. Dramatic developments unfolding in Jerusalem. We'll go there live, right after a quick break.

(COMMERCIAL BREAK)

[13:36:49] BLITZER: Israeli Prime Minister Benjamin Netanyahu is now amid a major political scandal. He's under investigation for bribery, fraud and breach of trust. And things may have just gotten a whole lot worse. Netanyahu's former chief of staff has agreed to turn states evidence.

To break it all down, we're joined by international correspondent, Ian Lee, joining us live from Jerusalem.

Ian, these cases we're talking about, what are they all about?

IAN LEE, CNN CORRESPONDENT: Well, there are two cases, Wolf. The police have been investigating them for months. But in a significant development yesterday evening, we learned that these cases involve bribery, fraud and breach of trust. Prime Minister Netanyahu has been questioned and is a suspect in these cases.

The first case is case 1000. And this deals with the prime minister receiving, allegedly receiving gifts. The second case is case 2000, and this pertains to the prime minister trying to curry favor with a local newspaper, allegedly, and in return, would cut down on the circulation of that paper's main rival -- Wolf?

BLITZER: What about the latest revelations involving the prime minister's former chief of staff? This could be a huge development.

LEE: That's right. This happened today. We learned that a former chief of staff of the prime minister has turned state witness. He has pled guilty and has cut a deal with prosecutors in another case that doesn't relate to this. But in turn, he will provide evidence. He will provide any information pertaining to these two cases that the police are investigating.

BLITZER: Serious development, indeed. So how is Prime Minister Netanyahu responding?

LEE: Defiant, Wolf. They've been saying this phrase, that "There will be nothing, because there was nothing." Something we've been hearing time's after time. In a statement, we also heard from a family spokesman, who said, "We flatly reject the false claims made against the prime minister. The campaign to replace this administration lies at its heart, but it's doomed to fail for the simple reason that there will be nothing, because there was nothing." Again, hearing that phrase again.

And then tonight, Wolf, we heard from the prime minister. He posted a video on Facebook.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translation): I can't not refer to this week's affair. I don't refer to background noises and I continue to work for you.

(END VIDEO CLIP)

LEE: So, Wolf, as this investigation continues, you can see that the prime minister remains resolute.

[13:40:33] BLITZER: And there's a lot of concern, I'm sure, among supporters right now. The Israeli police and the prosecutors, they're there working on this, you point out, on this case now for several months.

Recently, by the way, the former Israeli prime minister, Ehud Olmert, served time in prison. He is out. A former Israeli president also served time in prison. He was recently released.

Authorities in Israel take these allegations clearly very, very seriously.

Ian Lee, reporting from Jerusalem for us. Thanks very much. We'll stay on top of this story.

Also coming up, a new development in Syria. Russia assumes a bigger role in fighting ISIS. Could that be a sign that President Bashar al Assad is winning his country's civil war? CNN has the only western reporter inside Damascus. And guess what? We're going there live.

(COMMERCIAL BREAK)

BLITZER: U.S./Russia relations are at a, quote, "dangerous low." That, from the kremlin, agreeing with President Trump's assessment of the situation. A statement from Russia's foreign ministry reads, quote, "We urge our American colleagues to stop demonizing Russia and its foreign policy." That was in response to Vice President Mike Pence's comments earlier in the week. He accused Moscow of trying to destabilize the western Balkans while on a visit to Montenegro.

The strained relationship will certainly be a topic of discussion this weekend when the Secretary of State Rex Tillerson and his Russian counterpart, Sergey Lavrov, meet on the sidelines of an Asian security summit.

One issue the U.S. and Russia seemingly agree on, at least for now, the fight against ISIS in Syria. Dynamics on the ground have shifted with noticeable effects.

We go to our senior international correspondent, Fred Pleitgen, live from Damascus. He's the only western journalist in Damascus right now.

Fred, Russia has taken a new initiative in Syria. How is that impacting the cooperation between U.S. and Russian forces?

[13:45:29] FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, it certainly seems to us, Wolf, as though the U.S. and Russia are in sync as to who is going to fight ISIS here in the Syria. You have those American-backed forces, the Syrian Democratic Force in and around Raqqa. And then the Syrian military that is now increasingly fighting ISIS around the southeast of Syria.

It was so interesting, Wolf. I was able to speak to senior members of the Syrian military, who told me firsthand they don't mind U.S. planes flying around in the skies as long as they're coordinating with the Russian and fighting against ISIS. And they also said that with the Syrian army they are now fully dedicated to fighting ISIS. They say, at the moment, that's their only and main priority. It seems as though the U.S. has its sphere of influence where its backed forces are fighting ISIS. Russians have their sphere of influence. And that really has made a big difference on the battlefield, for instance, with the Syrian military making massive gains against ISIS in the past weeks -- Wolf?

BLITZER: Fred, tell us a little more about the cease-fires in what are called the safe zones of Syria.

PLEITGEN: Yes. One of the things enabling the Syrian military to make gains against ISIS. What the Russians have done, they've brokered local cease-fires. A lot of that, Wolf, frankly, it's possible because a lot of rebel groups no longer believe the U.S. might come to their aid, for instance, at the end of that CIA weapons program as well. So the Russians have brokered those local cease- fires. That means Syrian forces can go somewhere else, fight against ISIS. And the Russians are responsible for this safe zones. In fact, they opened up a new one just north of Homs. There have been some skirmishes around there as well. The rebel groups of part of those cease-fires, but other groups, for instance al Qaeda-backed groups are not. But you do see the Russians really are taking on a very big role here in Syria and their footprint continues to develop virtually every day -- Wolf?

BLITZER: Fred Pleitgen, reporting from Damascus. Fred, thanks very much.

This weekend, the U.S. Secretary of State Rex Tillerson heads to the Philippines for a critical regional security summit. The issue of North Korea's nuclear ambitions certainly front and center as Secretary Tillerson joins representatives from China, Japan, Russia, South Korea at the summit.

Let's discuss this and more with retired Rear Admiral John Kirby, a CNN military and diplomatic analyst, former spokesman for the Pentagon and State Department. And also with us, our global affairs analyst, Elise Labott.

Elise, North Korea's foreign minister will also be there in Manila at this summit. Secretary Tillerson said he hasn't ruled out the possibility of speaking to the U.S., addressing speaking directly with North Korean officials. Is that possible? There could be a conversation there?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: It's possible, but not likely, Wolf. A meeting like this would have to be really prepared and certain points that Secretary Tillerson would want to address.

I think what you're going to see at this meeting is opposite, the U.S. looking to isolate the North Korean foreign minister at this ASEAN meeting and try to seek suspending North Korea's membership in ASEAN.

I think what Secretary Tillerson said was very significant the other day. You have a lot of mixed messages coming from this administration about, you know, whether there should be military action, whether there should be talking. Secretary Tillerson said, point blank, he's ready to talk, if conditions are right. He just wants to see a sign from North Korea that they're ready.

BLITZER: Let me play that clip. This is Secretary Tillerson widely seen ascending a message --

BLITZER: He was.

BLITZER: -- to North Korea. Listen to this.

(BEGIN VIDEO CLIP) REX TILLERSON, SECRETARY OF STATE: We're trying to convey to the North Koreans, we are not your enemy, we're not your threat, but you are presenting an unacceptable threat to us, and we have to respond. And we hope that at some point they will begin to understand that, and that we would like to sit and have a dialogue with them about the future.

(END VIDEO CLIP)

BLITZER: Significant words, like to sit and have a dialogue with them about the future.

These summits, the sidelines, there are informal talks that do occur. And you've attended those kinds of summits. So is that at all realistic that there could be a dialogue between North Korea and the United States?

REAR ADM. JOHN KIRBY, CNN MILITARY & DIPLOMATIC ANALYST: Well, Wolf, I agree with Elise. I don't think that's going to happen here. And I do think the tea leaves show they'll look tore ways to isolate the North at this conference. There's lots of sideline and pull-aside discussions, but I don't see one happening with North Korea.

I just want to say, on his sound byte there, Tillerson's sound byte, he was also messaging China.

BLITZER: He was?

KIRBY: He was also messaging China. China was an audience for what he was trying to say there, too, that we need to find a way to diplomatically resolve this. And we know that talks are a way forward and they're willing, at least I hope they are, to find new breakthroughs in the diplomacy.

[13:50:17] BLITZER: I find it interesting, John, that the North Korean foreign minister was even invited to this security summit in the Philippines where all these other world leaders are going to be attending. That in itself is significant.

KIRBY: Yes. They're not technically a member of ASEAN but that they were invited, yes. And we're not members of ASEAN, and we were there at their invitation. And we let them control who's coming and going and participating. It's not bad that Pyongyang will be there and have to participate in multilateral discussions about security and trade issues in the region. But I think, again, Elise is right, that we need to take a very sort of firm stance here.

BLITZER: So even if the North Korean foreign minister, Elise, doesn't sit down and meet with Tillerson or any other U.S. official, the North Korean foreign minister could meet with a lot of people over there and make his points.

LABOTT: He could, but what Secretary Tillerson is headed there to do is to make this point, we don't want you talking to North Korea. We want to diplomatically isolate them. The question is, do they care? You know, you've seen kind of widespread international condemnation of North Korea at the U.N., at other places. I think the only thing that really they care about is some kind of agreement with the United States, and they haven't even shown they're ready to talk, so I'm not really sure that that kind of talk makes a difference.

BLITZER: The Russians are going to be there. Sergey Lavrov, the foreign minister of Russia will be in Manila. The secretary of state of the United States, Rex Tillerson, will be there. I'm assuming they will have an interesting conversation.

KIRBY: I'm assuming they'll have a full bi-lat. And lots of things to discuss, not to mention Fred's reporting out of Syria. If what they're doing in Syria can have some positive developments, I think that's good. My experience has been that they have never really been serious about going after ISIS in Syria. They really are about securing their own foothold, their own security interest in Syria. And we haven't heard any talk about moving the political ball down the field in Syria. So we'll see where it goes.

BLITZER: All right. We got to leave it on that note.

Elise, John, guys, thanks very much.

Much more news coming up. We'll be right back.

(COMMERCIAL BREAK)

[13:56:31] BLITZER: Tonight on CNN, new information in the so-called "Fatal Attraction" case. Former teacher, Carolyn Warmus, is still behind bars and maintains she did not kill her older lover's wife back in 1989.

CNN's Kyra Phillips sat down exclusively with the convicted killer. She's joining us now.

Your CNN special report airs later tonight. Looking forward to it. But tell us about the new information you collected in doing all your reporting.

KYRA PHILLIPS, CNN CORRESPONDENT: Well, you remember the movie "Fatal Attraction?" This was billed as the real-life "Fatal Attraction." And it became a national media frenzy. And it's because Carolyn Warmus was a beautiful young schoolteacher having an affair with an older married man. His wife ends up dead, shot nine times, and she goes on a trial for the murder. It's a hung jury. But then just before the second trial, the lover, Paul Solomon, finds a bloody glove in his closet. Sound familiar? A bloody glove. That helped acquit O.J. Simpson, as you remember. This bloody glove helped convict Carolyn Warmus. But she and her lawyers say they can prove her innocence.

(BEGIN VIDEOTAPE)

PHILLIPS: Do you believe that you can help overturn this conviction?

JAMES LENIHAN, ATTORNEY FOR CAROLYN WARMUS: I believe I can help Carolyn get this conviction overturned. PHILLIPS: What is it? Is it a smoking gun? Is it an instinct?

You know, my father told me when I was a kid, they're going to come times in your life when you're going to have a little birdie chirping in your ear. He said, no matter what you do in life, always listen to that birdie. When I met Carolyn, the birdie began to sing.

PHILLIPS (voice-over): Warmus, who's from a wealthy Michigan family, graduated with a master's degree from Columbia University in 1987. She was living in the Big Apple and loving her first teaching job in the suburbs of New York. Paul Solomon, 17 years her senior, became her mentor, and she was captivated by his charm.

(on camera): How did he steal your heart?

CAROLYN WARMUS, CONVICTED FOR MURDER OF LOVER'S WIFE: Like puppy love, almost. But at the time, I thought, oh, this was real love. You know, this was real deep love. But he was intelligent. I'm sort of intelligent. And I don't know, he was just, you know, paying a lot of attention to me.

(END VIDEOTAPE)

BLITZER: Interesting stuff. So you got a sense to know this woman, now 20-odd years after her conviction? She's been in jail all these years.

PHILLIPS: Oh, yes, for 25 years, practically her whole adult life. And people said to me, and I felt this way as well when I was interviewing here, this seems like the nice mom next door. She doesn't seem like someone who could pistol whip another woman and shoot the person nine times. And she has a chorus of defenders supporting her.

There's this bloody glove, which is so interesting, the blood was never tested. So she's on appeal, wanting that glove tested.

Also no weapon was ever found, no eye-witnesses, all based on circumstantial evidence, her conviction.

So it's a pretty fascinating case to look at again 25 years later. She feels the media frenzy helped convict her because the movie "Fatal Attraction" was such a blockbuster, everybody was zoned into this case.

BLITZER: Yes. Well, we're looking forward to it later tonight as usual. Good work.

PHILLIPS: Thank you. Thank you.

BLITZER: And don't miss Keira's special report, "Fatal Attraction or Fatal Mistake, The Carolyn Warmus Story." It airs later tonight 10:00 p.m. Eastern on CNN.

That's it for me. Thanks for watching.

The news continues right now on CNN.

[14:00:11] BROOKE BALDWIN, CNN ANCHOR: All right, you're watching CNN on this Friday afternoon. I'm Brooke Baldwin. Thank you so much for being --