♪ ♪ good wednesday morning to you. i'm jim sciutto. >> i'm erica hill. this morning a major abortion case under way in texas and it could cut nationwide access to the most common method of

abortion in the united states. this case specifically involves, rather, a drug used in a medication abortion. as of 2020 research shows abortion pills account for more than half of all u.s. abortion and miscarriage health care in this country. the trump-appointed federal judge was at the center of this battle already facing scrutiny. we'll take you live to tech tex and texas and tell you more about why. u.s. officials expressing concern after the drone crashed into the black sea. washington's message to moscow this morning. we are also keeping a close eye on the markets. the dow down just over 500 points now this despite good data on inflation. we'll explain what's behind those numbers at the stock market. but we do begin in texas where the biggest legal battle over abortion since roe v. wade was overturned by the supreme court is happening now.

cnn's rosa floores is in amarillo, texas. one judge in amarillo could have national implications here. >> this judge has a lot of power, jim. let me start with what's happening right now in the building that you see behind me in this courthouse. there's an injunction hearing that just started. it was scheduled to start at 10:00 a.m. eastern and what's happening right now is the plaintiffs who are a coalition of anti-abortion groups are asking the judge to block an fda-approved medication called m methaprestone, approved by the fda for decades. the drug was not safe and the approval process was completely flawed and the fda argues against that saying that's not the case, but here is what is so impactful and so controversial here and that is that if this judge rules against the fda,

this would be a judge who is telling the fda who is the s subject matter experts and the ones that congress trusts and it would be a judge telling scientists what to do which would be unprecedented which rolls so many other questions into play here because then what happens? how does that actually happen in practice? because the fda has processes, procedures and protocols to be able to do that. now does that then start which could take weeks or even months? now there are a lot of questions about what will happen today in the courtroom, electronics are not allowed so we can't give you a play-by-play of what is happening. normally we are able to do that in some cases and not in this case. we will not be inside the courtroom so we will not be able to bring you those updates quickly. now one of the big questions is

could this judge rule from the bench today after this hearing is completed? the answer is yes, but will he? i don't know because of the secrecy around this case i kind of doubt that that will happen because the judge was worried about what he said and what he told parties was a barrage of threats. he was concerned about security and so we really question if he is actually going to make a decision today, but again, that is up to the judge and we won't know until that happens, now because of all that secrecy, there's been an outpouring and an outcry by media and legal experts talkingi about transparency here and having an opportunity for individuals and people to fly to amarillo which, guys, it's in the middle of nowhere, to be able to be present. i should leave you with this. we're expecting protests here today by the women's march.

i talked to them yesterday. one of the things that they're very concerned about is if this starts with abortion medication, where does it end? >> guys, back to you. >> it's an important question and it shows why there's a focus on this case and from legal experts and why the secrecy. i am so glad you're on the ground for us thank you. >> let's talk about the impact of this with a practicing obgyn who conducts abortion services in indiana. >> thanks for having me. >> medication abortion, they account for more than half of all abortions in this country, a ruling here by this one judge in texas could end up cutting off access to this drug even in the 31 states where it's legal. tell us what impact that would have for women in this nation including your patients. >> you know, the fact that we

have so many decades of safety data, the evidence is there that this is a safe drug, methaprestone has proven to be safe and effective and the impact of overruling the fda's ruling of methapres tone and one of the impacts is that we simply would be confused, both doctors and patients will not know if we can trust the national guidelines which tell us to follow the standard of care, the practice that has been set forth by our national organizations or whether we need to listen to a judge who, as the previous reporter said, is not a subject matter expert. it's not good for patients. it's not good for people. >> it's confusing, as we look at the science here, at least from

what i've read and i'm not a medical professional, but even in reading the studies that have been done, the reason the combination, if only one of the drugs was approved what does that mean for a woman who either chooses to have an abortion or needs to have one. often because of a miscarriage the woman's body does not expel that or they need a surgical abortion. >> this medication methaprestone is not just used in abortion care and it's used for miscarriage, and taken away an approval because a court doesn't like what it does is ridiculous. we know that mifepristone is not

required, but it makes it work better. it make the whole process faster and more effective. it makes it so that fewer people will need to have procedural interventions or longer symptoms. what effectively taking away this medicine would do would be to make people suffer longer with consequences and side effects of medications, and increase the chances that those patients would need to be seen at a hospital or have interventions there. >> yeah. >> -- >> please, go ahead, erica. >> this is when it's tough to be in two different studios, right, jim? when we look at this, rosa raised the question she's been talking to people asking where does this end?

when you look at the possibility here that the fda approval could essentially be overruled. you talked about the confusion for doctors, what else is missing from that conversation as we talk about a borgdz in this country and as we talk about health care? >> that is it right there at the very end. this is a health care matter. abortion is health care nothing more, nothing less. abortion does not need to be legislated by a court, by a single judge who doesn't have expertise in this matter. this is a decision that should be left to the individual pregnant person to make that decision with their family, with their close loved ones and with their doctor. this doesn't need to be decided in a court. >> yeah. >> dr. katherine mchugh, we'll both thank you. it's such an important issue. >> thank you so much for having me. this morning the u.s. says it may not ever be able to

recover the $23 million unmanned military drone after russian jets forced it down over the black sea. the white house is calling this incident unsafe, unprofessional and reckless. moscow says the u.s. has no business flying drones near russia's border. >> we should note this took place over international waters. cnn national security reporter natasha is at the pentagon and ivan watson is in eastern ukraine. natasha, first to you. john kirby, nsc spokesperson does say the u.s. is unlikely to recover the drone and they've had interaction with the drone. what do you know this morning? >> first thing, john kirby the spokesperson for the national security council did say whether the u.s. will be able to recover that drone from the black sea because the waters are difficult to get to and there are no naval

in the area to get that drone. take a look at what kirby said this morning. >> we are assessing whether there can be any recovery mounted and we did intelligence from what might come from someone else getting their hands on that drone. >> they are trying or have tried to minimize the potential intelligence collection capabilities by russia if they were to seize this drone, which, of course, is lying in the black sea at the moment, but they are also saying that they do not believe at this point that the drone is likely to be recovered at all. the u.s. issued a statement yesterday saying that the drone was essentially completely lost, but in other news, the pentagon is also saying today that they believe that, you know, this is not necessary -- this was not -- that this was a reckless and dangerous act by the russians. however, no one is vowing any

real consequences for this. they have sent a very sharp message to the russians saying this is unacceptable because the drone, the russian planes did clip the drone and hit the propeller causing the military to be forced to bring that drone down, but the russians also saying that they do not want confrontation with the united states. while the two countries are going to continue to operate over the black sea and in the region, raising the risk here of a potential confrontation in the future, it does not seem at this point that things will escalate very sharply from here, jim? erica? >> when we look at drones they've played such an integral part in this war in ukraine. how was the downing of that drone different versus what's being used on the battlefield there? >> the reaper that the u.s. air force was operating, it can carry weapons. in this case it was described as reconnaissance drone. it's very different, i think,

from what we see a lot in the skies particularly over the front lines here in ukraine, in eastern ukraine. both militaries are constantly doing aerial surveillance and reconnaissance, trying to find targets on each side. in some cases they're using military, unmanned aerial vehicles, but in a lot of cases they're simply buying the kind of drones that you or i can purchase to fly around in our neighborhoods and doing things like, in some cases rigging them up with cameras to be able to get a live feed, but in other cases to drop things like individual grenades on enemy targets with very lethal results. we know of more militarized unmanned uavs. we know it's public knowledge that the u.s. has provided these switch blade kamikaze drones which are designed to dive down, impact and blow up and cause as

much damage as possible. these russians have been using these shaheed kamikaze drones and we've seen civilian unmanned aerial vehicles that can go far beyond the front lines. just a couple of days ago i was given exclusive access to what the ukrainian military says was a drone made by a chinese company that was carrying a 20 kilogram bomb that was designed to throw shrapnel and they were able to shoot it down with rifles, with kalashnikov assault rifles and i'm working on that report right now. all of this goes to show that there's a lot of stuff flying around in the air. some of it very lethal, and it's an integral part of this deadly, deadly conflict. back to you guys. >> crude surveillance aircraft which i know you and i have flown on before and the danger is you have a crude aircraft

coming in touch with another one and the chances of escalation expand. i'val watson in ukraine. natasha bertrand at the pentagon, thanks so much to both of you. still to come, despite cool signs inflation may be cooling and markets looking down this morning and not quite as far down as they were earlier and still close to 1.5%. coming up, i'll speak to the former president of the atlanta federal reserve bank as to what's going to happen now on interest rates and more. plus, extreme weather from coast to coast. the first nor'easter of the season just hammering new york and new england with snow. three feet in some cases and maybe even more today. hundreds of thousands of customers in the dark. out west, it is the recordbreaking rainfall in parts of california that we're watching. the threat there far from over. we'll speak to a hurricane hunter who has been inside these storms collecting data, and he'll join us live. a "let's dig in" day...

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this morning down, well, just about 500 points this morning, not quite as far down as it was and there's a lot of red there and the dramatic drop coming the new day economic data showed encouraging signs on inflation. >> cnn's matt egan is with us. the drop that we're seeing this morning, that is, as i understand it, not necessarily related to this new, positive data on inflation. this is related to an international banking issue that is also not connected to the bank failure in silicon valley. did i lay that out? >> that's perfect. i couldn't have said it better myself. confidence is a fragile thing. >> yeah. >> and the bank failures from the last few days in the united states have clearly shaken

confidence, and this is a fast-moving story where sentiment is swinging pretty quickly because just yesterday we saw banking stocks race back to life. we saw the stock market rise and it's a totally different story this morning and what we're seeing is regional banks in the united states and they're down first republic, america citizens financial and even some of the big banks. credit suisse is down sharply. that is a bank in europe that has been in trouble for some time. they've been in turmoil, but even some of the big u.s. banks and citigroup and j.p. morgan chase down sharply and investors are worried about whether or not there's another shoe to drop in terms of this pressure on the banking system. there's just so much that we don't know right now which is part of the problem. even some of the titans on wall street don't know. i mean, look at what larry fiffink, the ceo of the world's biggest asset manager is we don't know whether the consequences of easy money and regulatory will

cascade throughout the sector a kin to the s & l crisis with more shutdowns coming. >> ouch. >> exactly. we don't know. it's important to separate out the impact on investors and customers because if you're a customer of a bank you're safe up to $250,000. that is the fdic insurance limit per bank, per borrower. if anything the last few days has shown the federal government is willing to rescue depositors above $250,000 limit which is what they did with silicon valley bank and signature bank. it is important that people take a deep breath and calm down. >> it's an important distinction. deposits are one thing protected by the government up to $250,000 although the government said we'll go even higher and stock prices are different and they have an impact, also. the ppi, the producer price index, had a significant drop. >> despite these inflation

numbers it is so interesting that we've seen the market come down, but on the economic front producer prices unexpectedly dropped between january and february. also on an annual basis it cooled off to 4.6%. if you look at the chart, this is a major improvement from early last year when this metric was nearly 12%. we've seen eight months in a row of cooling off. less encouraging were some of the retail sales numbers out. that showed that american shopping slowed down a bit between january and february. retail sales fell by .4%. that's significant because, remember, consumer spending, that's the biggest driver of the u.s. economy and i should note that comes after a big increase in january. now the question is what is the federal reserve going to do with all of this because we've got inflation cooling off, consumer spending taking a dip and all of this pressure on the banking system. >> i mean, it shows how difficult it is to get a soft landing, right? to get it perfectly right,

that's a tall order. matt egan, thanks so much. this morning in the united states it is a tale of two storms. one on each coast really slamming the east and the west coast. you have this late-season nor'easter which dumped more than three feet of snow in parts of new york and new england and in some areas, storms are done. more snow on the way. meantime in california it's the rain and the powerful winds from yet another atmospheric river leaving more than 200,000 customers without power there. >> two separate storm systems and they're being closely monitored by air force reserve hurricane hunters. we are joined now by one of them. major chris dike. i always talk to folks like you who fly into the storm as opposed to the opposite direction. very brave. tell us what it's like and put us in the co-pilot's seat, what is it to drive through these

systems systems and fly through them? >> sure. when we're flying these storms they're different from what we're typically used to with the hurricanes and we still experience a decent bit of turbulence. i was flying the east coast storm a couple of days ago, and we were experiencing light to moderate turbulence, but more consistently throughout the flight rather than the hurricanes which are kind of sporadic. >> we are watching all of this weather this winter. these late storms hitting the east coast what feels like nonstop atmospheric rivers on the west coast. are you seeing changes in the storms as you fly into them? they feel more severe? they certainly feel more frequent. >> well, you know, each storm is kind of different and each scenario sets up for itself, but i will say that our crews have been pretty busy flying these things. we went from a hurricane season that extended into november to picking up with the atmospheric

rivers and the east coast storms, as well. we've definitely been busy. >> atmospheric river in addition to being a good band name, we use this term a lot when we're describing these events. can you explain what that looks like from above as you're up in the air? what's the experience like? how can people visualize that? >> sure. it's basically what you see when you're looking out the window as a sea of clouds and moisture. these atmospheric rivers are transporting a ton of moisture from the pacific ocean out to the west coast of the u.s. and so when you look out over it it's just nothing, but clouds all around you as you're flying through and taking the samples. >> quickly, in terms of those data samples, what are you learning? how is that used and do we see it in some of the weather forecasts that we may see every day? >> oh, absolutely. with the data that we're collecting, we're using these

instruments call drop zones and they're collecting everything from temperature, dew point and the wind speed direction of pressure and report that back to the aircraft and collecting those at strategic points where the models may not have as fine-tuned as a resolution on what's going on, so we collect that data to help boost the accuracy of the model and not only does it help the west coast and it also helps the entire u.s. as the systems move across. >> wow. well, listen, stay safe out there. we appreciate what you do. major chris dike. >> thank you. well, this afternoon north carolina's supreme court is reconsidering two election-related cases that could have big implications on voting rights. we will have details on that. plus several gop lawmakers have criticized governor ron desantis for him saying the u.s. doesn't really need to be supporting ukraine. could this become a defining issue in 2024? that's ahead. refund that allowed d us

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a major stock indexes are back down again this morning despite encouraging news on inflation. right now i see the dow down there just about 500 points. lots of folks watching the markets blaming this on questions about the banking industry. swiss bank credit suisse dropped more than 20% at some point, and now major u.s. banks falling.

regional banks way down in the last several days. joining us to speak about all of this is dennis lockhart, former president and ceo of the federal reserve bank of atlanta. sir, thank you for taking the time this morning. >> thanks for having me on, jim. >> so first, as you see the markets are down again today, after signs of hope yesterday. as you watch this, is the storm still brewing here specifically over concerns about risk to banks? >> i think the developments we saw this morning on the news this morning in the united states of credit suisse and other european bankshares being under pressure, it indicates to me that the systemic question, the systemic worry is still alive and we have to see how this plays out over the coming days, but certainly a touch of contagion seems to be happening with the european banks.

>> we saw over the weekend, the fed and the department of the treasury take immediate steps to try to calm this by one, ensuring depositors that their money is safe and also offering measures by banks who had some long-term holdings in u.s. treasurys here. as you look at this, do the u.s. fed and treasury have to take more steps now and if so, what steps, specifically, to rein this in? >> well, if it turns out to have a global dimension, then i think the regulators and the federal reserve particularly will be activating swap lines for dollar swap lines for the european central bank and be coordinating or at least talking very frequently with their colleagues in other jurisdictions around the world just to evaluate what kind of disruption is occurring

and whether there's going to be a need for the fed to provide liquidity to dollar markets around the world. that's typically what happens when something morphs into an international problem, and that seems to be the news this morning. so again, i -- you have to watch this minute by minute to see how it evolves, but that's one thing they could be thinking about. >> the sad fact is we've been here before. it's not to that degree at this point, but in 2008 you had similar concerns. dodd-frank law was passed after ward and it did a number of things including imposing stress tests on banks and increasing assets they had to hold and some of them rolled back in 2018 including raising the size of the bank that needs to abide by these regulations and you were in support of those relaxations in 2018. i wonder if you look at the situation now, was that a mistake and is that rollback

partly to blame for what we're seeing now? >> i don't remember being in support of it. no one asked me. i had been retired from the fed by that time. your question is was it a mistake? i think in retrospect it appears now to have been a mistake to raise the threshold for stress test to, i think, 250 billion. it turned out that silicon valley bank was just below that level and therefore didn't apparently go through the same stress test regimen that the larger banks do, and the stress test would conceivably, and the most adverse case would have picked up on the potential illiquidity, even though their balance sheet two or three weeks ago looked pretty sound. the stress test might very well have uncovered that. >> dennis lockhart, we'll

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carolina's supreme court is re-hearing two cases that were already decided last year. that's because when those rulings came down the court had a democratic majority. >> when republicans regained control of the court after the mid-terms gop lawmakers asked to revisit the rulings. the cases involve north carolina's voting maps and voter identification laws. cnn's diane gallagher is following both hearings for us and joins us from charlotte, north carolina. first, tell us about the cases and is this an okay thing to do. you change the makeup of the court and you go back to try to get a different outcome? >> jim, i do want to be clear, the only thing that has changed about these cases is the political makeup of the court. both of them decided last year and to give you an idea of how rare this is, these two election cases equal the same number of cases that the state supreme court has re-heard over the past three decades. the one that they are hearing today centers around a 2018

voter i.d. law that the then democratic majority, state supreme court deemed unconstitutional last year. the re-hearing will be in about two hours in north carolina. yesterday there was a re-hearing on redistricting and what was interesting about that argument was not the fact that the lawyer who was representing the republican defendants said that it wasn't an extreme partisan gerrymander because that is what the court ruled last year voting there to be a special master or redrawing those maps, but they say that the court shouldn't have been able to rule in the first place, and if that argument sounds familiar -- familiar to you, that is because this is the underlying case for that controversial so-called independent state legislature case that is currently at the u.s. supreme court, jim?

erica? >> so that is one of the many reasons that so many people are following this closely today. i really appreciate it. thank you. >> yeah. joining me is cnn political commentator errol lewis and molly ball a time national correspondent. good to see you both this morning. errol, if we start in north carolina as dianne point out, only two other cases were heard in the state supreme court in the last 30 years or so, this is more than the content of those cases. this is about political power. is this a foreshadowing of what may be to come in other areas? >> you'd have to really look state to state, erica, because in north carolina you have an elected supreme court and they are very public, very highly contested and very hotly contested races. so in some ways, that court, unlike in some other states is really a part of the whole political storm that goes on, and what we're expecting to see happen really sort of tracks with that.

it's almost like a third branch of the legislature that's getting involved. the chances of them arriving at a decision that is not to the liking of democrats are very, very high at which point they'll have to make some decisions within the democratic party out there about whether they want to fight it out on the ground and turn it to the federal courts. >> it's going to see. let's move on to 2024. there was a lot of activity in iowa over the weekend and it's the comments from ron desantis about ukraine really getting the most attention and he's reduced the war, russia's invasion of the territorial dispute and that's of vital interest to the u.s. and that has swift backlash to his fellow republicans. i just want to play some of those moments. >> to say this doesn't matter is to say war crimes don't matter. he's created war crimes and will go beyond ukraine, putin, if you

don't get that you're not listening to what he's saying. >> it is a territorial dispute any more than it would be a territorial dispute of the united states like say canada or the bahamas. he doesn't deal with foreign policy every day as governor. so i'm not sure -- i can't compare that to something else he did or said. >> this could really be a defining moment, molly for the republican party certainly moving into 2024 as we talk about not just ukraine, but foreign policy in general. how do you see this playing out? >> well, i think that's what remains to be seen. we are starting to see this 2024 primary engage and starting to see more activity and starting to see the candidates take positions or potential candidates in this case on high-profile issues and desantis has made a clear bet that this is where the base of the republican party is headed as has former president trump and

you see from those comments that you just played, the immense amount of the bleeback he's gotten from the establishment. the question is did he know that was coming from the republican establishment to put him back in the lane or did he not know that there would be quite so much. as some of those people noted, foreign policy is an area where he'll have a lot to prove on the campaign trail and having been a federal legislator and being more well known as the governor of a state and so as these states add these positions they'll definitely be definitional for desantis and his campaign possible ney ways he didn't intend and he has more work to do as he defines himself as a candidate. >> as we look at what his campaign may look like, right? it's one thing to be in iowa during the primary, but if he's opening up to a broader, national audience what those messages will be.

i know we're tight on time, errol, but i do want to get your take on vice president harris going to iowa. what should we read into it if anything? >> the biden-harris ticket in formation wants to at least put a stake in the ground and make sure they don't miss every single news cycle and they have the power of the office and they can do that. make no mistake, that is not friendly territory for this particular white house. you know, if you remember back in 2020, kamala harris dropped out because she'd gone in on iowa and made 87 appearances and was polling 23% and joe biden came in fifth. so this is not friendly political territory, but they'll try to make sure the republicans don't have it all to themselves which is about the least they can do at this point. >> errol lewis, molly ball, good to see you. thank you. still to come, right as the

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rid ght now the chair seen there, is speaking in virginia trying to find answers and solutions after close calls on runway across the u.s. just this year. >> cnn correspondent pete muntean has been following and takes a look at a problem that seems to be plaguing american airports. >> it is a runaway problem on

america's runways from hawaii to the latest incident at reagan national airport outside washington, d.c.. >> take off clearance. aborting takeoff. 2003. today the federal aviation is holding a safety summit bringing together pete buttigieg, investigators and regulators and follows seven so-called runway incursions involving commercial airliners since the start of this year, an issue that landed on capitol hill last week. >> the numerous recent near-misses by airlines just this year are very troubling. >> it was the latest grilling for faa acting administrator billy nolan who insisted to lawmakers and passengers that flying is safe. in announcing the summit, nolan said the faa will examine which mitigations are working and while others appear to not be as effective as they once were. >> the faa absolutely has a grasp on this situation and it's something that we look at every day. >> also in the meeting,

representatives from airline unions. american airlines captain says no meeting is necessary to know airlines are stressed to the max still struggling to bounce back from the pandemic. >> the data is behind me. it's happening. these incidents and things that we've been talking about well over a year ago are starting to show up on the flight deck and in operations. >> so far the faa sees no apparent common cause for the incident, a top concern for the national transportation safety board. >> just because we are the safest in the world doesn't mean that we'll continue. it only takes one. one serious tragedy to change all of that. >> our thanks again to pete muntean for that reporting and an important programming note, tomorrow night, rather, on cnn prime time, kate bolduan will take a closer look at america's of a

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