Transcripts For CNNW Erin 20240702

for watching. i'm wolf blitzer in tel aviv. i'll be bae back tomorrow in te aviv as well. erin burnett "outfront" starts right now. "outfront" next, the breaking news. new flares over gaza as israel launches its biggest air assault on the strip since the start of the war. israeli forces now coming face-to-face with hamas fighters. plus, fears of a second war growing at this hour. cnn witnessing more rockets entering israel from lebanon tonight. and cnn learns hezbollah is about to get a russian military added. and on "outfront" exclusive, janet yellen on why the house has just passed aid package for israel is bad for the united states. let's go "outfront." good evening. i'm erin burnett. "outfront" tonight, the breaking news. we are seeing new flares now over the gaza strip. what you're looking at took place just moments ago as part of a dangerous new phase in the war between israel and hamas. rockets have been raining down on gaza over the past few hours. you can see what happened not long ago in the nighttime in gaza city. it is the biggest ariel attack we've seen since the october 7th terror attacks by hamas. israeli officials telling cnn the area now being targeted they say is a hamas stronghold. the smoke screen you see covering the ground suggests that israeli troops are on the move or maybe on the move. that that screen would be obviously to mask their movement. that's according to nic robertson who is along the gaza border and a spokesperson for israel's military says they have now encircled gaza city. if that's the case, it means israel is completely cut off northern gaza from the rest of the 25 mile long strip. nothing can get in and no one can get out. israel's military chief of staff says the israeli troops are now engaged in quote face-to-face battles with hamas. it's the hand to hand street fighting and they are now inside important hamas facilities that are both above and below ground, which is a seeming reference to idf forces perhaps being inside hamas' massive tunnel system. where of course we understand command centers are there, hamas fighters and hostages. prime minister netanyahu adding quote, we are making progress. nothing will stop us. hamas is fighting back. during the massive air assault, hamas fired rockets back at israel. the iron dome did appear to have thwarted those attacks but tonight's fighting comes as fears grow of a second war. this one along israel's northern border. against a much better armed foe. jim shuuto reporting there's been a pick up in the pace of rocket fire from lebanon into israel. nic robertson and jeremy dimon are on the gaza border. nic, you have seen these flares, the smoke screen, seen this activity behind you. just very close to where you are. tell us more. >> yeah, right now, we're seeing what looks like tent fire going across the horizon behind us. these red traces that go across, low across close to the ground. this has been part of what we've been witnessing here over the past few hours. we hear heavy machine gunfire and these flares that are being dropped now, perhaps you can hear that detonation behind me. the flares that are coming down now appear a little further away than they were earlier on. perhaps around the town here, the heavy, heavy flares that were dropping couple of hours ago. sustained flares illuminating the sky brightly for about half an hour. that was around bait halu. the ground underneath was this dense smoke. the sort of smoke the military often uses to maneuver troops so they can keep them out of danger. so it would stop hamas for example being able to see them. hamas has been using armor piercing rocket shoulder launch rocket propelled grenades. so it is a very dangerous environment for the idf forces on the ground there. and it does appear as if they're tightening their encirclement in the city which has received multiple, multiple missile and artillery strikes over the past couple of weeks. potentially going into the town itself. we don't have those details from the idf we we know across the whole gaza strip and over the past few weeks, more than 9,000 civilians have been caught up and killed in these heavy strikes. more than 22,000 injured according to the hamas-led palestinian ministry of health. so it is not only dangerous tonight for the idf forces, it is also dangerous for the sieve yans down there as military campaign by idf to close in on hamas, as it gains traction. this is what we're witnessing tonight, erin. >> all right. nic robertson, thank you very much. to see a sky lit up like that at night in red and to know that there are people of course beneath those flares, dying. i want to go to jeremy dimon in ashkelon, north of gaza. jeremy, obviously, we talk about the north. if indeed the israeli troops have encircled gaza city, that would mean the north is truly cut off now from the rest of the strip and you have been witnessing an uptick in fighting in the northern parts of gaza, of course, adjacent to ashkelon. >> yeah, no doubt about it. earlier today before we saw these flares and this clear uptick in a ground operation in the city, earlier today, the fighting today had grown more intense in that part of the gaza strip. we were not far from nic's position today watching as there were mortar shells that appeared to be fired inside of gaza. we also heard the steady sthud f artillery fire there, but also intensity of arms fire and gun battles between hamas militants and israeli forces in that area. more intense than we had heard in recent days. all of this is very interesting particularly as you consider the context of israeli officials saying tonight they have encircled gaza city. they may have encircled it as they say, having various positions around gaza city and in the city itself, but clearly, they have not cleared the way in the northern part above gaza city between the border with israel and gaza city. clearly, there is still very intense fighting there and so regardless of whether or not they have encircled it, clearly, hamas fighters amain north of gaza city and there's still intense fighting there. as i've been trying to get a better sense from israeli officials about what this encirclement actually means and what the next phases of this ground assault will be, they've been very cautious to characterize what this will be. a siege of gaza city? will israeli forces go in and engage in the intense and perhaps bloody and deadly business of urban fighting inside those densely populated areas of gaza city? they simply won't say. what they are telling me tonight is that they will do whatever it takes to achieve this aims of this war. which as you've heard from the israeli prime minister and other officials, is to eliminate hamas' capabilities inside the gaza strip and to remove it from power. >> jeremy, thank you very much. i want to go now to general joseph, former u.s. sent com commander, and ben hodges. i appreciate both of you being with us. general, let me start with you. this major ariel assault we saw tonight with all of those flares. 30 minutes of non-stop rocket fire and explosions bombarding gaza. and this came right after the idf said that its troops had fully encircled gaza city itself. you saw that low smoke as nic robertson described as possibly being used to disguise israeli troop movement. what do you think is happening inside gaza city? >> thanks, erin. great to be with you. i think what's happening here is israel is as they've stated, has closed in around the city. is trying to create the best positions of advantage they can for what will come next, which will be actual operations into gaza city. so, it's likely that may made contact with hamas forces on the outskirts of the city. they had to fight to get into position and i think that's a lot of what we've seen and will likely see in the near future. >> general hodges, this is the heaviest bombardment we've seen by far since october 7th. i just want to be clear because the context here matters. it has been day in and day out of 300 ariel strikes and tonight is the biggest night yet. what do you think the next 24 hours is going to look like? >> well, i think by encircling gaza city, the israeli defense forces actually have created a situation where they have some options. what u.s. forces did around sat r city in baghdad and kandahar was to encircle and you try to separate the terrorists from the innocent people so this could actually create a situation where they could begin to try and evacuate some people from gaza city, which would obviously make the task simpler for forces when they do have to go in. and with secretary blinken arriving tomorrow, i think there's going to be huge pressure on the israeli government to do some sort of a pause. israelis clearly want to have the city encircled before they have to actually pause. >> right. of course, there's incredible pressure. new pressure from biden tonight to that, to do that very thing. as you point out, general. general votel, the military chief of staff for israel says military forces are underground important hamas facilities. seems pretty clear that means underground obviously in the tunnels in some capacity. when i say in some capacity, that could be a lot of different things, right? we have a map of the vast network of tunnels such that we even know it exists. so what do you think is actually happening there, general, in those tunnels, which are home to hamas fighters, command centers, weapon stashes, and hostages? >> well, i think what's happening right now is as the idf closes in around gaza city and moves to different parts of gaza, they're trying to get control of the entrances and exits for these tunnel systems because if you can control that, you can begin to gain control over the movement of hamas. and you begin to take away one of their critical advantages. that is the ability to shift fighters at will. to move and distribute supplies and to conduct command and control down there. so while this is a very difficult aspect of the fight, it's very critical for them to try to get control of the tunnels and i suspect a lot of what we're seeing is in fact that. >> so, general hodges, i want to ask you about secretary blinken because these images tonight are dramatic and you point out that it's not random that you're seeing a night like tonight right ahead of secretary blinken's next visit because everyone knows that visit in large part is a big push for the israeli government to pause. to pause military operations in gaza for humanitarian purposes. obviously, the u.s. has also been pushing such a pause as a way to release hostages, although israel said it wouldn't succeed in that, but that's part of it. so, do you think that israel will be forced to concede to that pressure? >> look, the israeli government, you know, their objective here is to eventually end up in a situation where they can peacefully coexist with their neighbors. so what they're doing now has to contribute towards that in state much more than just destroy hamas. that means they're going to need support from the west. not just the united states but other countries, and arab countries. so it's in israel's interest, actually, to find a way to damage hamas severely but still be able to have support from arab countries and the united states. so they can't be dismissive of the message to secretary blinken is bringing tomorrow. >> and he's bringing it in person. biden's obviously made it but bringing it in person with the import that carries. thank you both very much. i appreciablete your time. our breaking news coverage continues on this most intense evening of this war so far. fears of a second war along israel's northern border now intensifying because the leader of hezbollah is expected to break his silence. he could alter the course of this war. plus, i speak to american pediatrician, dr. zent. her harrowing journey out of gaza, her time there, we've been following closely. she'll be reunited on camera with her husband tonight. and a tense showdown between the attorney general's lawyer and trump's son, eric, who says he knows nothing about financial statements that inflated the famimily's wealtlth. but ththat is not t what the e s shshow. just moments ago, a flare seen as we were coming to air. we are witnessing the biggest air assault for anyone there on that 25 mile strip since this war began an october 7th and it comes as our cnn team in northern israel is witnessing rocket fire from forces into israel. this is a pivotal moment. the leader of hezbollah is about to speak for the first time since the war began. what he says could change the traje trajectory of the war. jim shuuto is "outfront" on the ground. what have you been seeing there today? >> reporter: well, this whole past week and longer, we have seen an exchange of fire along this northern border. mostly artillery fire, mortar fire, today though, we saw the sky filled. rockets coming from lebanon into northern israel and then we also saw israeli missile defense high in the sky taking out some of those rockets. did not appear they got all of them. israeli fire jets higher up in the sky responding as well. helicopters moving in both directions. just a level of activity in the sky that shows the level of alarm today on the border as the attacks stepped up. coming in from hezbollah and southern lebanon and fears of the opening of a new front. a rocket fired from southern lebanon sets the street on fire. today, northern israel suffered under one of the biggest barrages of rockets since the start of the war. our team witnessed the iron dome missile defense system intercept two incoming rockets. though at least one other caused substantial damage. in response, the israeli military fired back at what it s says is the culprit. hezbollah in southern lebanon. hezbollah sits on a massive stockpile of rockets and missiles. far bigger than that of hamas. numbering more than 100,000, many of the range and accuracy to strike deep into israel territory, including all the way to tel aviv. this is one sign of how seriously israel is taking the hezbollah threat. today, we watched israeli special forces and tank units conduct a live fire exercise. training to defend israel in case of invasion from the north. these are combined arms exercises. israel special forces, idf special forces here. there's also two tanks involved in this. it is live fire. it's a measure of the seriousness with which they're keeping their forces trained up ready to go if negacessary in t north. but also given the fact we're within sight of syria, just a few miles from the lebanon border, this is also a show of force to iran's proxies in the region. a show of force perhaps to this man. leader of hezbollah. to his admirers in the muslim world, he is a leader of the resistance. credited with forcing israeli forces out of southern lebanon in 2000, after an 18-year occupation. to israel, he is an existential threat on its northern border. tomorrow, he will address his followers and the world for the first time since the october 7th hamas attacks. the question for many, will he order his forces to join the war against israel more aggressively? >> they have the capacity to do enormous damage but i'm not certain that they really want to be on the receiving end of what israel is going to send their way. >> the threat of escalation extends beyond hezbollah. yemen based houthi rebels also backed by iran are firing long range missiles at israel in the southeast. another point in the war that would see israel surrounded. as the world awaits the words of hezbollah's leader, hezbollah fighters issued their own public letter earlier this week saying that their hands, their fingers are on the trigger. israeli officials have had their own strong words, communicating to hezbollah via interlocaters in europe, that if hezbollah gets into this war in numbers, that israel will strike back deep into lebanon. strong words now and now all eyes tomorrow on the words of the hezbollah leader. >> very sobering. jim, thank you very much. and more breaking news on this. because cnn is now learning that syria has agreed to provide hezbollah with a russian made missile defense system. oren is "outfront" at the pentagon breaking this news. you are just getting these breaking details. this would be a significant and serious development. what more are you learning? >> according to two sources familiar with the intelligence, the syrian president has agreed to provide a russian made ariel defense system to hezbollah. and it is the russian mercenary group wagner that will transfer that sa 22 missile defense system from syria to lebanon where it could be set up to be used. now, what's unclear from the intelligence according to these sources, is whether the system has already been transferred. it is a medium range air defense system and would add to hezbollah's capabilities if and when it arrives in lebanon. now, the israelis have dealt with the system in the past in syria. this is from may 2018. this is video from the idf of them striking sa 22 in syria that was operated by iran or being used by iranian proxies there. so they have shown the capability to handle these systems and to strike them from the air. but of course now the situation is entirely different with israel embroiled with a war in gaza and the possibility that hezbollah could enter this in a much more significant fashion. so even if israel has dealt with sa 22 before, certainly not under these circumstances and that's what everyone here is watching very closely. according to other sources on the matter, so far, the u.s. believes that iran and its proxies don't want to get involved in a big way but of course as jim pointed out, the speech from the hezbollah leader, earveryone is watching that speech to see where this goes and what it means. it's also worth pointing out the common denominator. syrian president backed by iran and they have worked with russia there, which has also backed assad and provided the wagner support. you see the ties here linking all of these different groups. >> absolutely. thank you very much. next, the american doctor whose story we've all been following. she was trapped in gaza. she told us about 800 people sharing a toilet. told you about the duress there. what was it like there as she left? plus, the house voting to tie billions this aid to israel and janet yellen is sounding the alarm. why? our exclusivive conversasation cocoming up. assault on northern. the biggest bombardment since the war began. flares and rockets lighting up the sky. explosions booming. troops at this hour, israeli troops surrounding the heart of gaza city according to the israel defense forces. this offensive as some americans are finally making it out of gaza and one is dr. barbara zind. an american pediatrician. she arrived the day before the october 7th terror attacks to treat children in gaza and that kept her trapped in gaza then for 26 days. you've all been following her story closely. as viewers of this show, and tonight, she's on her way home. she's on a plane going to colorado to see her family and i was able to speak to her just as she was going to catch that flight. "outfront" now, dr. barbara zind. i know you are literally on your way back home. i can only imagine the conflicted feelings you have about that and you're eager to be going home but of course leaving behind so much suffering. how do you feel right now? s >> well, just as you said, i feel mixed and relieved to be on my way home. i know being there, i couldn't do anything to help what was going on, but also, yeah. just so sad for the people of gaza and concerned about what's going on going on in the next weeks to months to however long it takes to get some peace there. >> there is so much suffering. i know barbara, while you were there, it was so hard for you to get any contact. your husband, paul, who we were speaking to every day, sometimes he got a text from you. sometimes he couldn't even and he was obviously quite distressed but there were times he told us you were sleeping in a car with six other people. you had reported that food and water were in short supply. you had seen people fighting over food outside the compound where you were. and you talked about a toilet shared by 800 people. just to imagine the thought of that. what that means for people. the duress. what more can you tell us about the conditions inside gaza right now? >> well, they, you know, it's great that the aid is moving in, but there's so much more aid that's needed. it's so difficult. the camp next to us ran out of water and we were getting short on water. at one point, only thought we had two more days of food left and were able to have someone risk their lives and go to north gaza to get food for our group. we were the fortunate ones. so really, people were just having trouble getting food. finding food in the grocery stores and getting water. a friend of mine there today says he's drinking the tap water, which is salty and not safe. 80% of the water there is not safe. so it's concerning. concerning about the health and like you said, toilet issues and sanitation. that's diarrhea and distarry, especially for the children there. that's half of the population. >> yes, and of course, the population to which you've dedicated your career and your life and your care. i mentioned your husband, paul. i just want to bring him into the conversation because he was with us and everyone watching every day, sharing any update he had from you throughout this entire ordeal. and paul, i know you can see barbara. literally on her way to come home to you. how's it feel the finally be in this moment? to see her, to know she is safe and on her way home to you? >> well, it's incredible. it was one of those things where you know, i knew it would happen but seemed like time was dragging on and then at some points, i did get pretty pessimistic, but otherwise, i'm very happy that she's on her way home. >> dr. zind, i know you have a, you can text, talk, but here in this moment, is there anything that you'd want to say to paul before you get on that plane and obviously you'll be with him tomorrow night at this time. >> yeah. you know, i think it's harder to be the people at home. granted we have challenges here, but you know, it's harder to be the people at home. and so i really, i, you know, appreciate all the love and support from paul and our son have given me. i just felt so bad for them. >> they had such incredible care for you. dr. zind, you mentioned your conflicted feelings because of what you're leaving behind. this was not your first trip to gaza. you had been several times before to help children there. do you think you'll go back? >> i have to talk to paul about that. i definitely want to come back and do, continue to do work with palestinian children. but we'll have to make that a family discussion, right? >> paul? >> yeah, we'll have vigorous discourse on that, yes. >> i can only imagine. i guess i'm glad that just kind of i guess eves dropping on your conversation here, it made us all smile in such a moment of darkness and pain for everything you've witnessed and endured. our thoughts are with you. please have a safe trip home and we will all be so glad you will be reunited, and your son as well. so thank you, again. >> thank you. >> see you later, sweetie. >> okay. see you, sweetie. >> and they, of course, will be seeing each other in just hours. next, trump's son, eric, caught in a gotcha moment. plus, the house just passing $14 billion in aid for israel but it's tied to spending cuts and actually adds to the deficit. treasury secretary janet yellen is my exclusive guest tonight. it was a dramatic day in the trump fraud trial. eric testifying under oath he had no knowledge of his father's financial statements. moments later though, the prosecutor then showed e-mails proving otherwise. >> former president trump's two eldest sons in court with smiles and thumbs up for the cameras. eric and donald trump jr. testifying in new york in a civil fraud trial -- of faultily inflating the value of properties like trump's previously owned hotel in washington, trump tower in chicago, and their miami resort by hundreds of millions of dollars. >> before even having a day in court, i'm apparently guilty of fraud for relying on my accountant to do, wait for it. accounting. >> the brothers executive vice presidents at the trump organization where they worked most of their adult lives took over the company when donald trump was elected president in 2016. >> don and eric are going to be running the company. >> donald trump jr. testifying he still believes the financial statements submitted in the case were quote materially correct end quote though the judge ruled the valuations were false. both brothers saying they did not prepare the financial statements for bank loans. i never worked on a statement of financial condition, eric trump said. i didn't know anything about it really until this case came into fruition. when pressed by prosecutors in the tense exchange, eric acknowledged e-mails from a decade ago appeared to show he knew about the statements. so, you did know about your father's annual statement as of august, 2013, didn't you, the prosecutor asked. it appears that way, yes, eric said. trump jr. told the court he relied on accounting and legal teams to assure the documents were correct when he signed them. i'm fine with the bank relying on that information, he testified. i don't know that i intended for them to do anything. i'm signing off on it. >> the banks in question made hundreds of millions of dollars. think about this, right. they are not claiming that they are victims. they are not saying that they were misled. >> trump jr. said he didn't fact check the value of properties including his father's apartment which the attorney general alleges was described as more than three times larger in square feet than it actually is. the new york attorney general says the fraud got the trumps better loan and insurance policy terms. >> the evidence is clear. and that is he inflated his statements of financial interest to enrich himself and his family. >> it's a case former president trump called fake and fully discredit. >> this trial is a disgrace. should have never been brought. >> if the judge rules against the trumps, they could be forced to pay back millions and lose their business license in the state. and court ended on another tense exchange. this one between the judge and trump's defense lawyer, christopher kise. the judge didn't like a comment he made about the judge's clerk. even saying he'll extend the gag order that's against the former president to the entire defense team. kise defended himself and reiterated his concern about this clerk's role in the trial. now, listen, eric trump comes back on the stand tomorrow and then possibly we see the former president under oath next week. erin? >> thank you very much. that clerk of course been a lightly rod in this case. next, a billionaire adviser attacking janet yellen. >> it was the biggest blunder in the history of the treasury. >> secretary yellen responds exclusively next. and nikki haley emerging as the alternative to donald trump. so what is her path to winning? the gop-led house passing a $14.3 billion aid to israel bill. a bill that has no funding for the ukraine war against russia. and a bill that has $14.3 billion in irs cuts. cuts that new speaker mike johnson says off set the aid. the bill of course may go nowhere in the senate where democrats and even top republicans want ukraine aid included. janet yellen spoke with us earlier and i began by asking her whether the house bill is a non starter. >> absolutely. i think it's an irresponsible bill. tieing support for israel. lacking support for the ukraine. which are both vital national security interests. and then tieing aid for israel to what is really an irresponsible proposal to cut funding for our internal revenue service. the only gainers from that are wealthy tax cheats and corporations that will pay fewer taxes that they owe because the irs will be deprived of $14 billion of money for tax enforcement. the congressional budget office estimated that loss of $14 billion would result in almost twice that. around $27 billion of reduced tax revenues. so overall, cutting funding for the internal revenue service doesn't cut the deficit. it raises it substantially. >> secretary, you're forced though into a situation, a political process where say getting aid to israel in addition to some irs cuts or other things you don't like, or no aid for israel at all. which would you choose? >> well, the president has made clear he would veto the bill in the house that ties aid for israel to cuts in funding for the internal revenue service. the ukraine situation and israel both have strong bipartisan backing and it's critical that we quickly provide both those forms of aid. with respect to ukraine, we have a country that is fighting hard to preserve its democracy after a brutal attack by russia. this is not something that is, our funding only good for ukraine. it's in our own national security interest because if we don't stand up when russia attacks ukraine, we don't know what countries might be next. >> secretary yellen, we live in uncertain times and very frightening times. these wars are obviously both part of that. in the israeli war against hamas, i know this matters to you as an american, but also on a personal level. you've talked about your father's family coming to the u.s. from a small town in poland and you've talked about how much of that town was destroyed in the holocaust. nearly the entire jewish population was deported or murdered, and that included your own family. and now we're seeing a disturbing rise in anti-semitism around the world and in the united states. a 400% rise in antisemitic incidents reported by the anti-defamation league. and that's just since the terror attacks on october 7. secretary, are you taken aback by this? how trouble ready you by this? >> i'm very troubled by this. i was appalled by the brutal attacks by hamas on israel and feel that israel deserves our unqualified support. but it's critically important also to attempt to minimize casualties of civilians in gaza, and i'm very supportive of efforts to as president biden is to bring humanitarian relief to gazans so that we don't see needless tragedy there as well. >> secretary, i do want to ask you also about some other comments, which you may well have seen. just the other day from the billionaire investor stanley druckenmiller. he was speaking on a panel, and was talking about what he sees as the treasury department's failure to lock in low interest rates. he was saying virtually all americans went and refinanced, locking in low mortgage rates. companies went out to take advantage of the incredibly low interest rates. he says everybody did it, except for the treasury department. he puts this on you personally. here is what he said. >> janet yellen, i guess because political myopia was issuing 15 years of two basis when she couldn't have 30 years at 180 basis points. i literally think if you go back to alexander hamilton, it was the biggest blunder in the history of the treasury, and i have no idea why she has not been called out on this. she has no right to still be in that job. >> well, secretary, i wanted to give you a chance to respond what stanley druckenmiller said. >> well, i disagree with that assessment. we have been lengthening the maturity, the average maturity of the portfolio. and in fact, at present, the duration of the portfolio is about the longest it has been in decades. we have found in regular discussions with wall street professionals, having regular and predictable issuance of maturities across the spectrum, both long, intermediate and short is critical to having deep and liquid markets for u.s. treasuries, which is critical to lowering our costs over time. and that is exactly what we've been doing. >> all right. your response tonight. secretary yellen, we very much appreciate your time tonight, and thank you. >> thank you. thanks for having me. next, nikki haley rising. she says she still has more plans to try to dedefeat trumpm. we'll l see next. nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. bold. daring. expressive. contra costa college allows me to be whoever and whatever i want to be, providing the stage, the canvas, the tools to use my voice and write my story. find your passion and create your future at contra costa college. start today at contracosta.edu tonight, former south carolina governor nikki haley gaining steam among some voters and setting herself up as the trump alternative. the thing is, the question exists, could she become a real threat to him or not? jeff zeleny is "outfront." >> reporter: nikki haley is having a moment in the republican presidential race. >> who has decided who they're going to be with? >> reporter: the question is whether she can turn it into a winning one. that's precisely what haley was trying to do today in new hampshire, working to solidify herself as the leading alternative to donald trump. handshake by handshake, table by table, the former south carolina governor is making her case in increasingly urgent terms. >> we're right there. so it's just about getting as much support as we can. we have a country to save. >> yes. >> we have a country to save. >> reporter: with the former president still dominating the republican primary, haley is focused for now on the race for second place, rising through the ranks in the narrow lane of anyone but trump. she has settled into a solid second in south carolina, is battling for runner-up in new hampshire, and is locked in a tie in iowa with florida governor ron desantis with trump holding a commanding lead in all three early voting states. >> her numbers are moving, surging. one thing i know about politics, there is such thing as political momentum. i think she has built a lot of political momentum coming out of the first and second debate. >> reporter: new hampshire governor chris sununu is keeping a close eye on haley as he decides which republican to endorse. the third debate next week he believes could be a turning point. haley and desantis are on a collision course, a preview of which has been playing out in duelling ads from their respective superpacs. >> governor haley helped a chinese company set up shop five miles from our base on land she gave them. >> ron desantis, he is lying because he is losing. >> reporter: heidi mahoney is a republican ready for change. she is sold on haley, she is tough. i think we need that i think we need her strength ro. >> reporter: she says haley has the best chance to win back the white house. haley is campaigning with an air of confidence, eager to weigh in last night on the daily show about whether desantis wears lifts in his cowboy boots. >> i've always said don't wear them if you can't run in them. we'll see if he can run in them. >> reporter: yet she strikes a serious tone on foreign policy challenges like israel and ukraine. >> when you look, it's an unholy alliance. it's iran, russia, and china. and let me tell you, i've never been as worried as i am today that america is acting like it's september 10th all over again. and we better remember what september 12th felt like, because we're there. >> reporter: she semi-bracing the momentum, but told us her defining moment is yet to come. >> my moment will be on election day. >> reporter: and erin, governor haley is just shaking hands here, finishing an hour-long town hall in new hampshire. the bottom line is this race for second place is simply a consolation prize, unless haley or whoever emerges can eroding some support from trump, who has a commandi

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