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Isa Soares Tonight
U.S. Fed Set To Announce Rate Decision; Seventy-Nine Dead After Migrant Boat Sinks Off the Coast Of Greece; At Least 100 Dead In Nigeria Boat Crash; U.S. Federal Reserve Leave Interest Rates Unchanged; State Funeral Held For Former Italian PM; Nottingham Rampage Leaves Three Dead, Three In Hospital; International Criminal Court Team Visits Area Of Dam Breach. Aired 2-3p ET
Aired June 14, 2023 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[14:00:00]
ISA SOARES, CNN INTERNATIONAL HOST: Hello, and a warm welcome to the show, I'm Isa Soares. Any minute now, the U.S. Federal Reserve is set to announce
its decision on whether to raise interest rates or keep them unchanged. I want to go straight to Matt Egan who is in New York keeping an eye on this.
And Matt, their expectations of Fed will pause, we have a decision as of yet, it's just come 2 O'clock.
MATT EGAN, CNN BUSINESS REPORTER: Isa, we do have a decision. The Fed has decided to pause this war on inflation, decision just out to keep interest
rates unchanged. Now, as you mentioned, this was widely expected, but this is a big deal nonetheless. This snaps a streak of ten consecutive meetings
where they raise interest rates.
This has been the most aggressive fight against inflation in the United States in more than 40 years. Now, looking at the statement that just came
out, the Fed officials, they did keep in language, saying that inflation remains, quote, "elevated". They say the job gains have been robust in
recent months, and that the unemployment rate has remained low.
And they also talk about the banking system, which of course is a big deal because we've seen a series of bank failures in the United States. And they
reiterate that the banking system remains sound and resilient, but they do say that tighter lending conditions are going to impact the economy, going
to impact families and households.
Reading a little bit further into the statement, they do talk about sort of what is next for interest rates. And it looks like, for the most part, they
kept in some of the language that had been there previously. Saying that as they assessed what steps are needed next for monetary policy, they're going
to continue to look at the income information on the economic outlook.
And I also think it's notable that this decision appears to me to be unanimous. So all the Fed officials --
SOARES: Wow --
EGAN: Have agreed here to keep interest rates steady. Isa.
SOARES: And this is important because normally, you know, when the Fed doesn't do anything, it's not -- it's rarely news. But this is important
because like you said, Matt, we have seen what 10 months of hikes. So, the next question is, I mean, is this a pause? Is this a skip? What do they do
next month?
EGAN: Right. I think that's a great question. I think that Fed Chair Jerome Powell, he's going to face some tough questions later this hour from
journalists about what he thinks is going to happen next. Is he in favor of an interest rate hike next month when the Fed meets again? Because that is
what investors are starting to price in.
That the Fed is going to actually begin to raise interest rates, at least one more time. Does Chair Powell believe that that's a good idea? I suspect
he's not going to want to box himself in because we're --
SOARES: Yes --
EGAN: Still going to get another jobs report. We're still going to get more inflation readings before that. But I do think it's important to try to
take a step back and think about why the Fed is shifting its strategy a bit here, right? I think that the fact that they're pausing is an
acknowledgment that in their view, their strategy is working that inflation has cooled off.
We learned this week that consumer prices went up in May at the slowest annual rate in more than 2 years. And so, maybe the economy doesn't need
all of this inflation-fighting-medicine to get pumped into it, like it so obviously did last year, and arguably during much of 2021 as well. Also, I
think this is an acknowledgment from the Fed that they've already done a lot here.
Ten straight meetings, yes. But during that span, they raised interest rates by 5 full percentage points. And so, that has done some sort of
damage to the economy, taking a minute to think about how much damage, certainly makes some sense. Now, we look at the market reaction here, again
this was widely expected, sometimes we see a kind of a cell on the news reaction from the market.
Stocks had been rallying in the days leading up to this decision. But as you can see, the Dow is down almost 30 points, about 1 percent, hitting
session lows now. And I do think that we're going to see the markets bounce around as everyone reads the tea leaves coming out --
SOARES: Yes --
EGAN: From Fed officials in the next few minutes about what Jerome Powell thinks is going to happen next.
SOARES: And like you said, probably a priced in expectation wars for reports here, Matt. I will keep an eye on the Dow, of course, when we see
Jerome Powell speak in what? Less than -- in about 25 minutes or so.
[14:05:00]
When he does speak, what should we be looking out for? Because it's what he says rather than what he does here that matters.
EGAN: Absolutely, OK. I think that I'm wondering if he's going to say that the next meeting is a live meeting. Meaning that yes, in fact, the Fed
could very well raise interest rates? I think that he's also got to address how much higher he thinks rates are going to have to go. Is it one more
quarter of a basis -- quarter of an interest rate hike or does he think that there might be more needed?
Also what does he make of the strength of the jobs market, right? It's been absolutely incredible how many jobs have been added in the middle of this
war on inflation that everyone -- that many economists thought it was going to cause a recession. The jobs market is not cooperating. Is he concerned
that maybe the jobs market is too hot?
And also, does he think that the banking crisis is largely over? I mean, thankfully, we haven't seen any more bank failures after the three large
banks failed earlier this Spring? So does he think that some of that damage is done? If so, then that could actually suggest that Fed officials think
they might have to do more work here to slow down the economy, to fight inflation.
In just one last point here, Isa, is even though inflation has cooled off, it's still not anywhere near back that -- back to that 2 percent target
that the Fed is aiming for. And I think that Powell is probably going to have to address the fact that more work is going to be needed here.
SOARES: Yes, and I'm sure he'll reiterate that as he has in previous occasions that more work is needed, but perhaps they need time to evaluate,
of course, those hikes that we have seen, those ten consecutive hikes that we have seen. Matt Egan, thank you very much, of course, we'll stay on top
of the Dow Jones, I'm just looking at my screen, it's down, what? One percent or so.
As soon as of course, we hear from Jerome Powell in 25 minutes, we'll bring you that live and we'll see how the market reacts. But for now, of course,
a pause on U.S. interest rates. Now, to a tragedy in the Mediterranean Sea. Seventy nine people are dead after a boat carrying hundreds of migrants
sank off the coast of Greece.
More than 100 have been rescued, and it is feared the number of people who perished may go much higher. There may have been as many as 750 migrants on
the fishing boat. The boat set off from Libya and Greek authorities say it was headed for Italy. Here is CNN's Barbie Nadeau from Rome with the very
latest for you.
(BEGIN VIDEOTAPE)
BARBIE NADEAU, CNN CONTRIBUTOR (voice-over): Exhausted migrants who survived a shipwreck rest at a rescue center in Greece. The Greek coast
guard responded to the latest Mediterranean tragedy on Wednesday. They say no one on board was wearing a lifejacket. Scores of people drowned. The
death toll continues to rise.
Hundreds of migrants crammed onto a boat in Libya, hoping to reach Italy or get rescued on the way. But that didn't happen. Their boat sank in the
central Mediterranean, the most dangerous maritime crossing in the world.
YANNIS KARVELIS, REGIONAL HEALTH DIRECTOR (through translator): It is indeed a tragic situation. A very difficult situation with a very large
number of shipwrecked people, a number that I think we have not faced in the past to such an extent and volume.
NADEAU: This is the deadliest first quarter on record in the Mediterranean since 2017. In February, a migrant boat carrying more than a 100 people
broke off the rocks of Calabria in southern Italy. Ninety four bodies were recovered. Despite the dangers, the number of undocumented people seeking a
better life in Europe has soared in 2023.
The Italian government says more than 55,000 people have arrived by boat since January. They're fleeing conflict at home, the climate crisis and
sweeping economic inequality. But European leaders can't seem to agree on how to solve the crisis, which has grown increasingly deadly. Ongoing
negotiations with Tunisia and Libya where most of the boats come from have stalled. So the boats keep coming, and the death toll keeps rising.
(END VIDEOTAPE)
SOARES: CNN's Barbie Nadeau joins me now for more with -- Rome. And Barbie, this is just so disturbing, yet another migrant tragedy. Just bring us up
to date with the very latest. I want to -- keen to focus on the search and rescue, is that still underway?
NADEAU: Well, it's now going to be a recovery situation because you know, they crowd 104 people they pulled out of the water, they pulled out 79
bodies. But they know there are hundreds, maybe more on that boat. You know, this boat was first flagged by an NGO more than 24 hours before it
sank. And at that time, they thought around 700 people -- 750 people were on the vessel.
Now, when a boat like that goes down, you can be assured that the traffickers and the smugglers will have locked people into the lower level
of the boat.
[14:10:00]
That's so people don't move around. That's so they can get as many people as possible for the most money as possible, to cross the sea to this,
quote-unquote, "better life" here in Italy where this boat was -- we assume and we are told was headed. So, the rescue operation now looks very much
like recovery. And that's going to be complicated because these boats are hard to bring up about at the bottom of the sea, they're very difficult to
go down into.
And you know, we're looking at the end of -- starting the end of the day here, darkness coming. So we're not quite sure exactly when they'll start
that process of really the hard work. And that's going to be finding out how many people are still on that boat underwater. Isa.
SOARES: I mean, as you were saying, Barbie, this was flagged 24 hours ago, are we getting any clear idea as to what happened? What are authorities
telling you here about the timeline?
NADEAU: Well, you know, we reached out to the Maltese search and rescue people, we reached out to the Italians, and they have not responded at
whether or not they had been alerted. Of course, you know, this is a well oiled machine by now. These boats come from Libya, trying to get to Italy,
and they either make it all the way across or they're rescued by NGO ships or by often the Italian coast guard.
And so, you know, once they're flagged by these NGOs, these authorities have been told, we know, but they don't often communicate certainly to
journalists about whether or not they sent anyone to send a rescue. Now, we don't know how it ended up in Greek waters at the port it left in Libya,
obviously, plays a role into that. But we don't know if it had a motor problem, if there were strong winds, strong seas.
The Mediterranean is a rough body of water, and it's not safe by any means. And so sending out, obviously, people know that they're risking their
lives. And time and time again, you know, this central Mediterranean passageway is the deadliest migrant passageway in the world that people use
-- more than 20,000 people they know have died trying to make this crossing since 2014.
How many have died? They don't even know about, of course, will never be known. And you know, this is a saga where you and I have talked about many
times, and it's something that continues. And it's only mid June. You know, this is -- this is when the boats usually start in full, and you know, in
greater numbers. Isa.
SOARES: It's just incredibly tragic, of course, so many women, so many children trying to escape, obviously, instability in their own country, and
being exploited, of course, by human traffickers in getting to the situation, just truly horrific. Barbie Nadeau, appreciate it. Thank you
very much, Barbie.
Well, in Nigeria, more than 100 people are dead after a boat carrying hundreds of wedding guests capsized in the Niger river. Authorities say the
overcrowded boat overturned when it hit a tree trunk on Monday. Witnesses say that the boat split into two and the water carried passengers away.
However, rescuers have brought at least 144 passengers to safety.
Well, Odessa residents say their children are living in constant fear. This as the city is hit yet again by Russian attacks. Ukrainian officials say
cruise missiles killed at least three people, that happened overnight. Several more were injured and victims may still be trapped in the rubble.
The Ukrainians say Russian strikes also killed three people in the Donetsk region.
And Kyiv is reporting partial success in its counteroffensive. CNN's Fred Pleitgen and his team have seen the intensity of the battle firsthand. They
have more now from the frontlines.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Ukrainian forces firing at Russian troops holed up in Blahodatne in south
Ukraine. This video, the brigade says shows the Russians making a final stand here. Much of the area near the frontlines deeply scarred by combat.
(on camera): This is the area of Ukraine where the heaviest fighting is currently taking place. And you can see what it's done to a lot of the
buildings and the cities and villages around this area. And that fighting is said to get even worse.
(voice-over): We're with the 68 Jaeger Brigade, which has been making important gains here. The soldiers confident and grateful for U.S. supply
gear. "A lot of the times it saved my life", he said. "It saves our lives every day from shrapnel, shelling and bullets." But some of the vehicles
have already been lost, and the Russians continue to fire back.
Constant artillery shelling and even airstrikes too close for comfort as our crew had to duck for cover. Still, the deputy brigade commander says
his soldiers are just getting started. "Our counterattack will definitely be successful", he says. "We believe in victory. We are moving forward
towards our goal. We are advancing."
[14:15:00]
On this part of the frontline, the Ukrainians believe they have the gear, the manpower, and the determination to advance far into Russian-held
territory. Fred Pleitgen, CNN, Velyka Novosilka, Ukraine.
(END VIDEOTAPE)
SOARES: Fred reporting there from -- Fred, Velyka, and well on the ground. Well, also on the ground is our Sam Kiley in Kyiv with the very latest. And
Sam, as we heard there from Fred, these are very early days, of course, on this offensive. And right now, it seems that Ukraine is claiming partial
success when we focus in the southeast. Just remind us here, Sam, what is the military objective in this part of the country?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Isa, this is a frontline that extends east-west from Zaporizhzhia, Ukrainian-held through
to the Donetsk city which is held by the Russians since 2014-'15. Now, it has a very heavy series of trench lines, reportedly, the biggest and
longest trench line built since the second World War, visible from satellite imagery, of course.
Very serious defenses in depth. And that is because from the Ukrainian perspective, if they can punch through this frontline and head towards
Crimea, they can also divide Russian forces. They can trap Russian forces in Kherson, on the other side of a frontline. And then they can perhaps
then exploit some of the gains they've had around Bakhmut, where they're also pushing not in a massive way, but in a significant way.
They have got a lot of momentum now building south of the city there. They've taken some estimates around 7 miles of territory there and
assailant, that is pushing into territory they lost to the Russians. So, if you combine all that, you're starting to see potential, just potential, for
a Ukrainian initiative to really get going, and start to get the Russians on the run, because ultimately, Isa, the Ukrainians know that they need the
Russian army to collapse from within.
Because they can't really beat it in terms of manpower. They do have much better equipment now. We're seeing that it being used and lost inevitably
on that frontline that Fred was on just the other day. But -- and that will continue very significantly too, that they've had this uptick in new
equipment being promised by the United States.
Replacement Bradleys, more ammunition, more HIMARS and long-range rocket systems, all intended to back-fill the counteroffensive as it builds with
momentum. Isa.
SOARES: Yes, and this partial success that Ukraine is speaking of, of course, and you talked -- you and I spoke about this, I think it was on
Monday, Sam, it's coming at a military cost, you know. We've spoken in the week how Kyiv lost multiple U.S.-supplied armored vehicles. You mentioned
it's expected, this is only the first phase, the probing phase.
And I suspect we'll see more of this happening, but U.S. now stepping up, which is what I'm guessing Ukraine has been asking all along, right?
Continued support.
KILEY: Yes, I think very significant indeed that they've announced this support very quickly, on the back of the reports of losses of equipment.
Now, those will be internal reports, not just what's been put out on social media, because of course, a great deal of what is going on with both sides
on social media, claims and counter-claims are nonsense intended to distract and disarm the fighting spirit of the enemy.
But it is the case that the Ukrainians have built into their plans and understanding, and a regretful understanding that they are going to take a
very significant casualties. They are going to spend and have a lot of this material that they've been supplied by the United States and other NATO
partners, destroyed.
And prior to this counteroffensive, in meetings all over Europe, you recall not long ago, President Zelenskyy went on a whistle-stop tour around Europe
to drum up support, not just for his desire for F-16 fighter bombers, but also to make sure that logistics train won't break once his
counteroffensive gets underway.
Now, it's in the early stages, it is needing re-supply. And it's very important not just in a physical sense that the Americans have stepped up,
but that they're doing so vocally and immediately. That will be very well received indeed on the front lines. Isa.
SOARES: Yes, well, it definitely will help, not just what we're seeing on the frontlines, but also with morale. Sam Kiley, great to see you, thanks
very much, Sam. And still to come tonight --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: President Putin has an entire country as hostage.
(END VIDEO CLIP)
SOARES: The ICC's first chief prosecutor tells me about the difficulties of trying Vladimir Putin for his actions in Ukraine. Then, voters, Republicans
and now Donald Trump himself are responding to his indictments. What we expect legally and politically after such a historic day. Both of those
stories after this short break. You are watching CNN.
(COMMERCIAL BREAK)
[14:20:00]
SOARES: Well, Donald Trump now lashing out at prosecutors a day after his arraignment in Miami, Florida. He pleaded if you remember, not guilty to
federal crime charges that he kept national security documents after leaving the White House and lied to officials about it. He is now back at
his New Jersey Golf Club, celebrating his 77th birthday.
(BEGIN VIDEO CLIP)
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Today, we witnessed the most evil and heinous abuse of power in the history of our country.
This is called election interference. This day will go down in infamy and Joe Biden will forever be remembered as not only the most corrupt president
in the history of our country, but perhaps, even more importantly, the president who together with a band of his closest thugs, misfits and
Marxists, tried to destroy American democracy.
(END VIDEO CLIP)
SOARES: Well, defiant speech as you heard there, spelling more headaches for his legal team. Whatever Trump says can be admissible in a potential
courtroom fight with a special counsel.
(BEGIN VIDEO CLIP)
TRUMP: I hadn't had a chance to go through all the boxes, it's a long tedious job. It takes a long time, which I was prepared to do, but I have a
very busy life.
(END VIDEO CLIP)
SOARES: He likes to share. So what comes next for Donald Trump and his presidential campaign? Our senior legal correspondent -- first
correspondent, Paula Reid is in Washington. Paula, great to see you. We heard there, just a little clip of a very defiant Donald Trump. So what
happens now legally? Just talk us through the path to trial here.
PAULA REID, CNN SENIOR LEGAL CORRESPONDENT: The first thing he needs to do is assemble his legal team. Yesterday, he was represented by two attorneys
he had been working with for quite some time. One of them is the former solicitor general in Florida. But we know that they've been looking for
some attorneys in Florida to take on this case permanently.
A case like this is a full-time job. Most really, good defense attorneys in Florida, they have their own full-time practice. It's hard to take on
something like this. And historically, Trump has had difficulty finding lawyers because there are concerns about him not paying his bills. There
are concerns about the reputational impact, potentially alienating other clients.
So it might take him a while to find his final legal team that will help him through this prosecution. But once he has that team in place, we expect
that they're going to try to get this case dismissed. Now, I'm not saying they're going to be successful, but they're going to try, because one of
the big tensions here is that, the special counsel wants this to go as fast as possible.
[14:25:00]
He issued a rare public statement last week and said, he wants a speedy trial. But former President Trump hoping to be president once again, he
wants to delay this as long as possible, preferably until after the election. So he's going to try to file any motions, do anything he can to
try to put this back at least after the election. And he hopes he'll be back in the White House, so can maybe make all this go away.
SOARES: Right, so delay and delay tactics. And meanwhile, Paula, what we have seen it seems is Trump's team viewing this indictments -- and correct
me if I'm wrong, through the lens of his re-election campaign, right?
REID: Yes --
SOARES: But as we saw in that little clip that we just played, he likes to talk. How risky is this legally?
REID: I mean, he is a very challenging client, right? That's why he has so much difficulty finding lawyers, right? One of the incredible things about
this particular case is that he's on a recording talking about having these classified documents, knowing he can't declassify them. That's a little
unusual for him, because yes, he talks all the time. But he tends to do so in a way that is pretty careful.
Gets right up to the line, but doesn't usually incriminate himself with some of these public statements, you know, they could be used against him
later. But he's a very challenging client, I'm sure that any lawyer would advise him to one, stop attacking the Justice Department, no matter how
politically, viably you think that is.
And stop talking about this case, stop defending yourself because you're only making it worse. But he is not out to listen to anyone. I mean, this
is a guy who I think truly, probably, thinks that he did nothing wrong. He does not seem to truly understand the difference between the Presidential
Records Act and classified documents, right?
The materials that are major in your presidency versus classified materials. We also know during his presidency, he understood most of the
procedures enough to follow them while in office. So that's unlikely to be a viable defense if and when this ever goes to trial.
SOARES: Paula Reid, appreciate, thanks for breaking it all down for us. Thanks very much. And still to come tonight, Italy pays respect to former
Prime Minister Silvio Berlusconi with a state funeral in Milan. Plus, we have details on the vigils for the three people killed in Nottingham on
Tuesday, that includes two students.
(COMMERCIAL BREAK)
[14:30:10]
SOARES: Welcome back everyone. If you were joining us, it's at the top of the hour. You've seen the U.S. Federal Reserve has opted to keep interest
rates unchanged this month. That hinted more interests -- increases pardon me, could be coming. We are keeping an eye on the Dow Jones. You can see
there. It was kind of priced in as we heard from our Matt Egan in the last 25 minutes or so.
But the Dow Jones is down just over 1 percent. Nasdaq and the S&P also down. We heard from the statement from the Fed saying that holding the
target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy.
Jerome Powell is walking in. Let's have a listening.
JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: Good afternoon. My colleagues and I remain squarely focused on our dual mandate to promote maximum
employment and stable prices for the American people. We understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2 percent goal.
Price stability is the responsibility of the Federal Reserve. Without price stability, the economy doesn't work for anyone. In particular, without price stability, we will not achieve a
sustained period of strong labor market conditions that benefit all.
Since early last year, the FOMC has significantly tightened the stance of monetary policy. We have raised our policy interest rate by 5 percentage
points and have continued to reduce our securities holdings at a brisk pace. We have covered a lot of ground, and the full effects of our tightening have yet to be felt.
In light of how far we have come in tightening policy, the uncertain lags with which monetary policy affects the economy, and potential headwinds
from credit tightening, today we decided to leave our policy interest rate unchanged and to continue to reduce our securities holdings. Looking ahead,
nearly all Committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2
percent over time. And I will have more to say about monetary policy after briefly reviewing economic developments.
The U.S. economy slowed significantly last year, and recent indicators suggest that economic activity has continued to expand at a modest pace.
Although growth in consumer spending has picked up this year, activity in the housing sector remains weak, largely reflecting higher mortgage rates.
Higher interest rates and slower output growth also appear to be weighing on business fixed investment. Committee participants generally expect
subdued growth to continue. In our Summary of Economic Projections, the median projection has real GDP growth at 1.0 percent this year and 1.1
percent next year, well below the median estimate of the longer-run normal growth rate.
The labor market remains very tight. Over the past three months, payroll job gains averaged a robust 283 thousand jobs per month. The unemployment
rate moved up but remained low in May, at 3.7 percent. There are some signs that supply and demand in the labor market are coming into better balance.
The labor force participation rate has moved up in recent months, particularly for individuals aged 25 to 54 years.
Nominal wage growth has shown signs of easing, and job vacancies have declined so far this year. While the jobs-to-workers gap has declined,
labor demand still substantially exceeds the supply of available workers. FOMC participants expect supply and demand conditions in the labor market
to come into better balance over time, easing upward pressures on inflation. The median unemployment rate projection in
the SEP rises to 4.1 percent at the end of this year and 4.5 percent at the end of next year.
Inflation remains well above our longer-run 2 percent goal. Over the 12 months ending in April, total PCE prices rose 4.4 percent; excluding the
volatile food and energy categories, core PCE prices rose 4.7 percent. In May, the 12-month change in the Consumer Price Index came in at 4.0
percent, and the change in the core CPI was 5.3 percent.
SOARES: You've been listening there to Fed Chair Jerome Powell, of course in the last 30 minutes or so we heard from the Fed's decision that they
will pause their interest rate hikes. Of course they'll be raising rates since March 2022. They raised rates, in fact, consecutively 10 times. And
what we've heard from Jerome Powell in the last few minutes is they are strongly committed to bringing inflation to our 2 percent goal.
[14:35:17]
Of course, at the moment, that's more than double that target, the inflation. So clearly of a concern, still of a concern. Jerome Powell also
said they've raised interest rates by five percentage points. So he said, we have covered a lot of ground. But he then went on to say, the full
effect of tightening has not yet been felt. And in terms of future moves, how will the Fed move next month? Is this a pause? Will there be no pauses?
Hinting at the fact there will be more interest rate hikes?
He said most officials think additional hikes are necessary this year. So see as a pause, see as a skip, but more hikes to come this year. We don't
know what that means next month, but clearly this pause, this skip meant really to gauge, really the impact that we have seen in terms of the rate
hikes and whether that's trickling down through the economy.
We'll keep an eye on any of the latest lines from Jerome Powell. We're also keeping a close eye on stock markets because it was down about 1 percent or
so when the Fed announced it 35 minutes ago. Although it's priced in, as you can see, hasn't really moved that much.
But look, this is a moment when everyone's listening to the Fed. Any hints of how the Fed may act in the coming months? Any indications? It's like
reading tea leaves here, but we'll keep an eye on the market. But the key line here is that they're pausing for now, but that more hikes are coming.
Now, I want to go to Italy because it's a National Day of Mourning there, where a state funeral was held earlier for former Prime Minister Silvio
Berlusconi.
And you can hear the applause there as thousands gathered in Milan to say goodbye. Berlusconi died on Monday at the age of 86 after battling
leukemia. He was a controversial figure in politics, his lengthy career marked by scandals. Our Senior International Correspondent, Ben Wedeman, is
in Rome with more on the day's events, as well as Berlusconi's legacy. And then for many, this was, of course, a moment to pay respect, but also to
remember that this man, this figure, who for so many years dominated Italian politics and the media. So how will they remember him? Because he
was a divisive figure like we said?
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: It really depends, Isa, who you speak with. But certainly what we saw in Milan was an
outpouring of respect affection for a man who was for many, was the Italian dream. He came from a simple middle-class background and became, at one
point, the richest man in Italy.
Now, it was appropriate that his funeral was held in the Duomo of Milan, that is the largest church in all of Italy for a man who, for many, was
larger than life. In attendance at that funeral were his five adult children by two different wives, as well as his last romantic partner, who
is a mere 53 years younger than he was.
Also at the funeral was the Italian President, Sergio Mattarella, as well as Giorgia Meloni, the Prime Minister. There weren't a lot of foreign
dignitaries there. Most prominent among them were Viktor Orban, the Prime Minister of Hungary, as well as the Emir of Qatar and the Prime Minister of
Iraq.
Now, today, of course, was a day of national mourning. Some Italians didn't quite understand why it was a day of national mourning for a man who was
actually convicted, found guilty of tax evasion, and who was dogged for years by the law because of financial misdoing, because of his infamous
bunga bunga parties and other legal complications.
But nonetheless, he was a man who served as prime minister of this oftentimes unruly country longer than anybody since the end of the Second
World War. And he really did leave a mark, not just on Italian politics, but on the media. Keep in mind, he said, that in 1980 he founded the first
national private television network, breaking the monopoly of the state broadcaster RAI and providing Italians with a somewhat lower brow form of
entertainment, but something that at least livened things up a bit in a somewhat stayed media environment.
And of course, he went on to enter politics in 1994, a man like Donald Trump. He really had never held any public office, and he came into office
promising to be as successful in government as he was in business. That didn't actually turn out to be the case.
[14:40:17]
After he left office, the Italian economy was in worse shape than ever before and was in the grips of severe economic crisis. But his personality,
as they say, larger than life, did win him. Many admirers who came out today for that funeral. Isa?
SOARES: Yeah, it's definitely very colorful. Ben Wedeman, appreciate it. Thank you very much, Ben.
Now, a vigil will be held Thursday in Nottingham for the three people killed in English city. British officials say the two of the victims were
university students. They were stabbed by a 31-year-old man. Both students were 19 years old. A man in his 60s was also found dead. And officers
believe the incidents are linked.
CNN's Scott McLean has been following the story and joins me now with more. And I should say that vigil I saw earlier, Scott, incredibly moving, really
hard at times to actually to watch. This, you know, this is we're in June. This is the moment when students are out celebrating almost end of year,
and yet they are celebrating the death two of their friends?
SCOTT MCLEAN, CNN CORRESPONDENT: Yeah, frankly, I don't even want to imagine what those families are going through. And you're absolutely right.
That vigil was really hard to watch. And when you think of, you know, just how sudden this was. And obviously, the more we learn about these students
who were killed and also this 65-year-old man, the more tragic this becomes.
We know their names, Barnaby Webber and Grace Kumar were the two 19-year- old students. They attended the university of Nottingham and they were both quite gifted athletes. Grace Kumar so gifted, in fact, that she represented
England in field hockey. She was studying to become a doctor. Her parents said that she was wise beyond her years.
Barnaby Webber was a cricket player. His parents said that he was over the moon to learn that he had actually made the University of Nottingham team.
And they said that he was brilliant, bright young man with everything to live for. And it is just so heartbreaking to hear these families describe
just how proud they were of these kids. And I just want to play you a little bit of sound from this vigil when the fathers of these two young
students got up and actually spoke to the crowd. So here's what they said.
(BEGIN VIDEO CLIP)
FATHER OF NOTTINGHAM ATTACK VICTIM: It's the love that we have out here. I just wish we had it everywhere. So look after each other. It's a big thing.
FATHER OF NOTTINGHAM ATTACK VICTIM: I'm lost for words. I've lost my baby boy and I can't even comprehend how I'm going to do and deal with it.
(END VIDEO CLIP)
MCLEAN: I lost my baby boy. It's pretty hard to watch.
SOARES: Barnaby's father there.
MCLEAN: Yeah. There was also a 65-year-old man who was killed as well. He worked at a school. The school also put out a statement saying that he was
beloved, respected, always went the extra mile for students.
SOARES: Hard to comprehend what we heard Barnaby's father says, hard to comprehend what's happened here. What do we know about the suspect? Because
we very little about him. Do we -- what more do we know?
MCLEAN: Yeah, we know that he's 31 years old. We don't know very much at all about the motivation. Police say that they are keeping an open mind
when it comes to this.
SOARES: What's that's mean?
MCLEAN: So they say that they're working with counterterrorism police, doesn't necessarily mean that they're considering terrorist -- that this
could be terrorism, could be other things, mental health, you name it.
But what is especially usual about this crime is not only the randomness of it, or at least seeming randomness of it, but also the geography of this
and the sheer physical space that was traveled. So if we bring up the map here, you had the two stabbings on Oxton Road. That was the first one, then
you have the 65-year-old man Ian Coates, who was found stabbed at Magdala Road, just more than a mile away. Then you had the van stolen at Magdala
Road from Ian Coates driven down to Milton Street, which is in the city center, where he tried to run down three people.
One person still in critical condition in the hospital, and then a fourth location where this guy was actually arrested. And we just learned today as
well that this suspect also tried to get into an assisted living, or supported living facility as well, but didn't manage to get in, thankfully.
SOARES: I know you'll stay on top of that, Scott. Appreciate it. And we'll be back after this short break.
(COMMERCIAL BREAK)
[14:47:06]
SOARES: Well, Ukraine's military says it's achieving a partial success in Southeast Ukraine. Right now, there's fighting happening in several areas
around Zaporizhzhia. You can see on your map. And Ukraine claims to be gaining ground there.
The offensive comes as part of Kherson are still coping with the floodwaters, of course, from the collapse, Nova Kakhovka Dam. On Monday, a
team from the International Criminal Court, the ICC, visited the flooded area to gather information about the breach. That afternoon, I spoke to the
ICC's first Chief Prosecutor, Luis Moreno Ocampo during his tenure. He investigated investigations in dozens of countries. And in his new book,
War and Justice in the 21st Century, he's giving new insight into how those inquiries work.
When I spoke to him, I started by asking him, what evidence the ICC teams would be looking for in Kherson?
(BEGIN VIDEOTAPE)
LUIS MORENO OCAMPO, FORMER CHIEF PROSECUTOR, INTERNATIONAL CRIMINAL COURT: The International Criminal Court already indicted President Putin. And it's
interesting because it's the only court in the world who can do that. And they did it. The court did it. So now, of course, the court could keep
adding new charges, but the issue is how the states will react. Because another -- an international -- our warrant is not like a national it's not
a police going to arrest a person. It's a constraint for President Putin. It's like when a group of criminals have a hostage in a bank. So you don't
go and kill them. You try to negotiate with them. And in this case, President Putin has an entire country as hostage.
And that's why it's very important how states, other states in Europe, in Africa, in Asia, in the U.S., how they react to this. How they put pressure
on that, how they leverage this to stop what's happening in Ukraine today.
SOARES: Right. And so this -- the dam could potentially be part of another crime. The ICC puts against -- that's what you're saying against Putin. And
if there's evidence that obviously that Russia or Putin played a role here in the breach of the dam and the flood and the damage it caused and it
triggered, how would you then go about prosecuting this?
OCAMPO: Look, in this case, it is always a complexity, because it's not enough that Russian people did it had to be President Putin himself
involved with. That why is so complicated. And that's why it's so important that the first case presented against Putin is very clear. Because it's a
case that Russia itself was exposing, pretending was a humanitarian assistance, and in fact, it was a war crime, abducting, transferring the
children from Ukraine, and President Putin of himself involved with the leader of the office that committed this crime.
[14:50:07]
So I think it's a very strong case connecting President Putin with the crime. In the dumb case, that's a challenge. Is there evidence that
President Putin himself was involved with? That's a different issue. But that's why it's so important already President Putin is indicted.
SOARES: Yeah. What you're talking about, of course, the ICC, like you said, Mr. Moreno Ocampo has already several cases against Russia, most recently,
as you mentioned, that issued an arrest warrant for President Putin and another top Russian official. And that's, as you clearly stated there, over
alleged war crimes pertaining to the illegal force deportation of children from Ukraine to Russia. How likely, though, realistically here, Mr. Moreno
Ocampo, is it that we'll see President Putin prosecuted in our lifetime?
OCAMPO: Well, the most one important thing is, first, President Putin has immunity before any other court in the world, but not before the
International Communal Court. That's important.
Second, it's important to understand this is a very serious crime. Third point, what's happened now is President Putin is limited. He -- there is a
big debate now, he can go to South Africa, to the meeting there, and South Africa is debating the issue. So that's the impact. It's a constraint on
President Putin and it's a constraint to the States, U.K. and U.S. rejected to him in a conversation in a meeting at the U.N. with this lady who was
indicted with him.
So there are warrant issued by the International Criminal Court limit the activity of Russia and limit the discretion of the States. That's why it's
so important. International is more primitive. And the International Criminal Court is the only institution we have to deal with the crimes
committed in Ukraine by Prussian people.
SOARES: Mr. Moreno Ocampo, really appreciate you taking the time to speak to us. Thank you, sir.
(END VIDEOTAPE)
Former head of the ICC. I'll be back after this short break.
(COMMERCIAL BREAK)
SOARES: Welcome back, everyone. The European Parliament has approved new rules intended to govern artificial intelligence. It is part of a major
attempt to address potential dangers from the developing technology.
[14:55:04]
Lawmakers are calling for bans on AI, biometric, surveillance and emotion recognition system. They also want AI firms like ChatGPT to disclose
content that is AI-driven. The parliament says its next move is to work with E.U. member countries to turn the rules into law right across the
block.
And finally this evening, thousands of people are flocking to Seoul this summer, but not to see the sights you probably imagine. Fans are showing up
to bathe in the Oria that is BTS, the biggest boy band in the world. This week marks 10 years since BTS was first unveiled as the band leave that
prompting local authorities and tour operators to treat the anniversary as a festival of national pride.
The postal service has released commemorative stamps and skyscrapers are being lit up purple, as you can see here, the band's signature color. Well,
mega fans Lisa and Diana said they planned their trip from California seven months in advance to coincide with the anniversary. And they said, we want
to just, you know, eat the food they eat, just to breathe the same air that they breathe. That is a lot of love and dedication.
That does it for me for this evening. Thanks very much for your company. Do stay right here. Quest Means Business is up next. We'll have more on that
Fed decision. I'll see you tomorrow. Bye-bye.
(COMMERCIAL BREAK)
END
