good morning. 11:00 a.m. eastern, 8:00 a.m. pacific. as we await a grand jury decision on whether to indict former president donald trump, he and his allies are escalating attacks on the district attorney. we are outside the d.a.'s office. overnight, the video that appears to be the final moments of a black man pinned down. now the kremlin says putin

carefully studied china's peace plan for ukraine. we'll talk with congressman henry cuellar, and we will ask him with the hours long meeting with the president of mexico. and a teacher shot by a student is speaking out in an msnbc exclusive. >> i will never look at the look on his face as he pointed the gun directly at me. we begin this very busy hour with new developments in the high profile manhattan grand jury investigation of a hush money payment made from trump to stormy daniels. a new witness spoke to the grand jury on monday and accused former trump lawyer and fixer, michael cohen, of acting alone

and making the $130,000 payment to daniels back in 2016. former legal adviser to cohen, costello, testified for over two hours yesterday and slammed cohen. >> if they want to go after donald trump and have solid evidence, so be it, but michael cohen is far from solid evidence. >> here on msnbc, cohen responded to costello's comments and defended his testimony. >> the beauty that i have is i have facts, i have truth, i have the documentation. let me rephrase that, the district attorney has the documentation in order to validate every single statement that i have made. >> we should note that donald trump denied any wrong doing in the case. joining me now, vaughn hilliard

live from mar-a-lago, and gabe gutierrez, and an assistant u.s. attorney and president of the leadership conference on civil and human rights. gabe, what do we know about robert costello and the significance of his testimony? >> hi, josé. good morning. he could potentially be the final witness but we don't know that for sure. as you said, he was brought on by the defense to try and blow a hole in the prosecution's case by trying to undermine the credibility of the prosecution's star witness, michael cohen, and calling cohen a liar and convicted purger, and that could be significant but it's hard to know since we were not in the room, and cohen now saying he does not expect to be back here on wednesday. he was not used as a rebuttal witness yesterday, even though

he was standing by. again, costello was trying to undermine cohen's credibility. >> yeah, and how effective could this be to a grand jury? >> well, look, any attorney, any prosecutor, is going to want to make sure that any witness they put on the stand is credible to a jury. so anything that undermines that credibility, that's a question of the jury of whether they believe that undermining or not, and i think that goes back to what all these emails say. bob costello said he had 321 emails. do they actually undermine michael cohen's testimony or not? what we do know, and we do know this from the mueller report, that there are ways in which the district attorney could

undermine the credibility of bob costello, because he is featured in the mueller report, and even in the conversations that he had with michael cohen, in fact, he referenced in the very press conference you are using clips from where he went to deliver the message to michael cohen, essentially, that he has friends in high places, that he wanted michael cohen to know, don't slip. he's got these friends, and he will take care of you. that was the whole conversation that michael cohen shared about the pardon, and this is what we have seen also in public from donald trump, so with any witness, whether it's a witness for the prosecution or a witness of the defense, there's always, always questions about who is the jury going to believe. but mr. costello has some of his own issues on credibility. >> what are we hearing from

trump world about costello's testimony? >> right. today was supposed to be the day that donald trump said was going to be the day of his arrest, and called on protesters and there's a small gathering here now, and it pertains to donald trump and his allies. they heavily promoted over the last 12 hours the testimony of robert costello, from rudy giuliani to campaign advisers to his aligned super pac to other allies, because they are making the case that michael cohen is not a credible witness here. this is so much predicated on that argument. donald trump even saying in a true social post here this morning that, quote, the d.a. will do the right thing because of the testimony that robert costello presented. of course, we don't know as the public what the grand jury has in their hand.

michael cohen stated that donald trump knew or was aware of this particular arrangement to stormy daniels of $130,000 before the 2016 election. what kind of documentation may prosecutors have? the federal prosecutors, when michael cohen plead guilty to charges related to this particular inquiry, federal prosecutors said individual one, donald trump, directed michael cohen. so the suggestion out of the documents was federal prosecutors believed they had evidence that donald trump told cohen to make the payment to stormy daniels, and now costello is making the case that cohen did it on his own, and once an indictment were to come out and once we see exactly what prosecutors have in their hands, we will have a better understanding of a potential guiltiness of donald trump in a

criminal proceeding. >> gabe, what more are we hearing about the timeline of this investigation? where are things going next? >> well, that is a big question at this point, josé. according to several sources familiar with the matter, no new developments are expected in the grand jury today, and we don't expect trump to be arrested at this point. the next grand jury date is tomorrow, and that's the earliest that we might know what comes next in this grand jury investigation and whether we might see a potential indictment. i should mention, josé, law enforcement officials here in new york city are preparing for that eventuality and are discussing the security here outside the d.a.'s office, and the barricades went up yesterday and continue to surround the courthouse today. a small protest is scheduled for outside of trump tower, and a

small one yesterday outside the courthouse, but we have yet to see any protests materialize, but officials in new york and washington, d.c. are on high alert if we do see a indictment in the next few days. >> federal prosecutors looked at the hush money case and neither took action against trump then, manhattan d.a. think there may be a case here? >> let's backtrack, josé, because that's an important question. remember that the u.s. attorney at the time, mr. berman, actually made public statements about the fact that the department of justice from washington, d.c. and bill barr was interfering with the prosecutorial independence. if you will recall, he was terminated from the position. he said he would resign -- very, very unusual behavior from a

person appointed by the very president himself, and we certainly have seen a public record also from the january 6th committee that has showed the efforts of donald trump to use the department of justice and u.s. attorney's office for his own personal ends, so we know the department of justice said at the time that a sitting president couldn't be indicted, and that's what we understood to be why individual one, donald trump, who was implicated by the u.s. attorney's office, was not necessarily charged. what we don't know is why they have not charged since. nobody can answer that question, but prosecutors -- what they will say is the indication of public evidence in filings that there was evidence, and -- and we would not have a district attorney picking up an investigation and going to a grand jury if there were not evidence to support paneling

that grand jury, and certainly we will know what the grand jury determines soon. if donald trump did not think he was in peril, we would not see them trying to preempt or interfere with an indictment, and they must know it's coming and they have some sense of what the evidence would be, because they would possess some of it. i would say their behavior is so that it indicates they have legal peril. >> in a similar case, a judge ruled witnesses would be allowed to testify in the civil rape charkevfiled, and what is your reaction to that? >> my reaction is that the attorneys for donald trump are not very happy with that ruling. i think it's a fair ruling. look, this is a civil case. the distinction between a civil

case and a criminal case is in a civil case you can talk about thesnj character of the person determine whether they harmed somebody civilly, because you are not going to put them in prison. in a criminal case, unless it goes specifically to the crime being charged we don't want to do anything, just because you have a bad character, potentially be guilty of a crime. essentially the judge is saying, yeah, that's fair game, you can put in evidence whether this is the kind of guy that would do this, and as a result, you know, possibly have defamed pg carol. turning to a newly discovered video showing virginia state deputies and hospital staff piling on a

shackled man that died while in police custody. i want to warn you this video may be difficult to watch. here you can see the man shackled on the ground and held down my deputies and medical staff for about 11 minutes, according to the "washington post." they were told he had been combative while being admitted to the hospital. "the posts" said it found the video by clicking on drop box links listed in public filings. nbc news does not know how the video was edited. the attorneys for two of the deputies said their clients are innocent. we go outside the courthouse. you are following what is happening this morning, and what is the latest? >> reporter: it has been a busy

morning here in dimwity, and so much of what we heard -- i just left the courtroom a few minutes ago, and so much is centered around that video, and parts of that may be difficult to watch. i want to describe what we were able to observe from nine minutes of a 27-minute video that the "washington post" put up. you see him come in, and he has his hands and legs restrained and he ends up on the ground. we talk about how ten different people are charged with second-degree murder, seven deputies and three employees at the time with the psychiatric hospital, and you can't see the man on the ground. there's no audio. you cannot hear the words being said but certainly a chaotic situation. when we see his body turned over and they realize he is no longer

breathing, they do administer aid. we know during the press conferences everybody was relying on the commonwealth's attorney and the representation for his family to describe what they saw in the video, which they said was horrific. now we are able to see it with our own eyes, and it's something the defense is upset about. this is the defense for one of the deputies that spoke to us this morning. >> certainly that is the prosecutors prerogative. i am disappointed. i think that makes a jury pool and those that see it far more difficult, and those in the public, it's going to be more difficult to find a jury that has not been tainted or read the story, so i am disappointed in that. we were going to file a motion for that not to be released but it's too late. >> trying to summarize what we

have seen in court this morning, there was a hope by the defense to try and prevent this video from getting out there. you heard -- josé, i know you were talking about the "washington post" and how they obtained it, and the commonwealth attorney included a drop box link that was not password protected and the defense said that was not supposed to happen. in court they discussed the possibility of filing a gag order, and they said it's already out there, it's not possible anymore. you heard the disappointment from the defense there. one last thing as we wrap up, 10 people total charged with second-degree murder, and so far those that were heard today have received fines, but there are more hearings to come. >> thank you so very much. now looking to wall street where another roller coaster week of trade something under way, and take a look at how the markets are doing right now. up about 241 points.

this morning as well, in light of the recent banking industry fears, treasury secretary, janet yellen, insisted the banking sector remains sound. >> let me be clear, the government's recent actions have demonstrated our resolute commitment to take the necessary steps to ensure that the depositor savings and the banking system remains safe. >> but now all eyes are on the federal reserve, where jerome powell is expected to raise interest rates tomorrow despite these recent banking fears. joining us now with more is cnbc's christina. what do you think? >> it shows the government is going to ensure deposits.

they are providing guarantees for all deposits, including uninsured once at silicon valley bank and signature bank that failed a week and a half ago, and yellen is suggesting that lifeline should be extended to other small banks, and that needs congressional support and we know how difficult that can be sometimes, and the biden administration is looking to adopt the executive order, and all is in an attempt to restore the trust in banking. >> what would be the significance of the federal reserve raising interest rates right now? what would it mean for folks considering all of what we have been seeing the last week and a half, two weeks? >> i know.

it's obviously rocked the markets across the globe and has hit the financial sector. we have to keep in mind inflation is still high, spiked to a 40-year high and it was 6% last month and only recently started to drop. our central bank has to deal with that, and they are hiking rates a quarter of a percent, and that's the rate banks lend to each other overnight. we have seen the rate hikes, and that trickles through to consumers. right now the average credit card rate is 20%. higher rates could hurt smaller banks as more people may not put as much deposits in there and that's what the smaller banks thrive on. >> thank you. still ahead, no classes today for hundreds of thousands of students in los angeles. why school workers in the

nation's second largest district are on strike. plus, the kremlin said china has a quote, peace plan for ukraine. what is coming out of today's talks between xi jinping and vladimir putin. you are watching "josé diaz-balart reports" on msnbc.

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23 past the hour. today china's xi jinping is meeting with russia's vladimir putin on day two of this visit

to russia. today they attended an official ceremony as they began official negotiations. meanwhile, japan's prime minister became the latest g7 leader to travel to kyiv for talks with president zelenskyy. joining us, senior vice president for asia and korea chair at the center for strategic and international studies and also an msnbc foreign affairs contributor. what is the reaction so far in china during xi's trip? >> they have been framing the visit as a trip for peace, xi jinping going to moscow having released this 12-point plan to arrive at a cease-fire in ukraine. but here we have the leader of the second most powerful country in the world standing side by

side with his russian counterparts days after he was cited for war crimes by the enter matt criminal court, so the optics of the visit are not exactly ideal. the two men so far have not talked much about that, and a lot of their meetings are said to be focusing on deepening economic ties and furthering china's purchase of cheap russian energy and possibly building a second pipeline. it's why the u.s. has been quite skeptical and critical of the visit by xi jinping. china's cease-fire proposal would largely keep russian territorial gains in place. that is something ukraine's government said it simply won't accept. however, in all of this, ukrainian president zelenskyy has not ruled out wanting to speak with xi jinping and there is a chance there could be their

first phone call since the war started, and that could happen before the end of the week, josé. >> victor, what do you make of the split screen moment. xi jinping and putin and japan's prime minister meeting with zelenskyy in kyiv? >> two things, josé. first, it shows how the countries are lining up behind this japan g7 country and the west lining up behind ukraine, and then china and russia just growing closer and closer. second, i think it means the notion of two theaters, it's no longer the case. the reality is both of these parts of the world, asia and europe are deeply connected because of the war in ukraine. >> victor, as xi meets with putin, the biden administration announces it will send an additional $350 million in weapons and gear to ukraine. what are the chances we could

see china give direct military support to russia? >> i don't think we could rule it out. i don't think it's something they will announce publicly. it will be something if they did it would be behind the scenes. i don't think they are after some sort of grand peace proposal that would require the russians to withdrawal from the donbas. >> thank you both so very much. up next, school is closed for more than half a million students in los angeles due to a strike. we'll explain what those school workers are demanding. plus, an nbc news exclusive. the virginia teacher shot by her

6-year-old student is sharing her story, what she remembers about that day, next. you're watching "josé diaz-balart reports." -can't hear you, jerry. -sorry. uh, yeah, can we get a system where when someone's bike is in the shop, then we could borrow someone else's? -no! -no! or you can get a quote with america's number-one motorcycle insurer and maybe save some money while you're at it. all in favor of that. [ horn honking ] there's a lot of buttons and knobs in here. heading on a family trip? nah, sorry son, prices are crazy, [son deflates] awh, use priceline. they have package deals no one else has. [son inflates] we can do it! ♪go to your happy price♪ ♪priceline♪ if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more.

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no school today for nearly half a million students in los angeles. right now more than 65,000 employees in the nation's second largest public school system are on a three-day strike in the rain. a union representing cafeteria workers, bus drivers, custodians and teaching support staff in the los angeles unified school district are demanding a 30% pay increase for all members who they say have an annual average salary of $25,000. this morning members of the teachers' union are refusing to cross the picket line after last-minute efforts to avoid a strike fell apart monday. joining us from los angeles, nbc news correspondent, mora barrett. there had been hope averting a walkout would happen. >> reporter: this is day one of the strike, and i am outside headquarters where there's already picketers outside school

buildings starting at 4:30 this morning. there was an effort by the district and the union in the last year to negotiate, and the union is saying the district has not come close to what they are asking for, and they are asking for a 30% increase because $25,000 a year is below the poverty line, and it's not up against the minimum wage here in california. the district came up on their offer in the last few days, but the union is holding firm to the 30% increase. i heard from the union president who is protesting, he's a building engineer and described why it's so important to hold the district to their promises today. >> many of us are parents of lsusd students, and many of us live paycheck to paycheck and we know losing pay will be difficult, but lausd pushed us

to a strike. we refuse to be silent and we are ready to fight, and we are proud to be joined by teachers striking in solidarity with us. united we will win. >> reporter: these are custodians, bus drivers and other essential workers that keep the district running. they don't want their voices to be silenced. we expect to see rally activity later today. this rally and continued protests, josé, is expected to last at least three days. >> meanwhile, the students and their families are kind of in a holding pattern until it gets resolved. what resources are available to them? >> right, josé, the schools have been essentially shutdown because teachers are not crossing the picket lines.

they are standing in solidarity with the essential workers, and that's why school is not in session today. it's important to know that 75% of the school population is at or below the poverty line, and parents and students rely on more than services and education, but rely on childcare for working parents and meals throughout the day, and the district is stepping up and providing childcare at several locations for parents to go to work, and meals, and that's expected to last through the next three days of the strike. >> thank you. now to an nbc exclusive, abigail zwerner, shot by her 6-year-old student tells her story for the first time. take a listen to what she told savannah guthrie. >> i started hearing things that made my fear grow.

as the day went on, it grew more, my fear grew more. i remember him pointing the gun at me. i remember the look on his face. i remember the gun going off. i remember feeling something -- >> what are the physical injuries? >> the initial gunshot went through my left hand and ruptured the middle bone as well as the index finger and the thumb. the gunshot then went into my chest up here where it actually still remains, so i have the scar up here and i still have bullet fragments up here. i have gone through a lot of obstacles and challenges. some days are not so good days where i can't get up out of bed. some days are better than others. >> her attorney said she will file suit against the school in two weeks saying administrators failed to take action after they were warned three separate times

that the boy had a gun with him. the boy's parents have said the child has an acute disability and was receiving treatment under a court-ordered temporarily detention at a medical facility. up next, new reaction from the top house republican leader as republicans are ramping up their threats against the manhattan's d.a.'s office as we await the possible indictment of the former president donald trump. you are watching "josé diaz-balart reports."

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should be equal justice. this was personal money. was not trying to hide. seven years ago, and the statute of limitations, and in your heart of hearts, you know, too, this is just political. >> joining us from orlando, nbc news correspondent, ali vitali. how is the trump investigation playing out there? >> yeah, i mean, josé, welcome to the next 18 months, because republicans were already being asked to answer everything in regards to donald trump, but now you are squarely in the election year and there's going to be a primary, and he's the frontrunner. as much as mccarthy and others are saying they would prefer to focus on policy, it's obvious at some points they will have to talk about the former president, especially when he is up for potentially a historic indictment. that has dominated parts of the

conversation here. this is what it will look like for the next 18 months as the house republicans try and leverage their house majority, but also do so not just pushing on their policy priorities, and they have been talking about things like education, and the pending fights on the debt ceiling and on tiktok being a point of bipartisan agreement and certainly on china, and all of these issues came up and so too did the former president. what was interesting to me, mccarthy was asked during that press conference whether he thought trump was the leader of the party, and mccarthy dodged on that, and he said if you ask the press he clearly is, and chagrinned at the idea that we keep bringing up the former president, but the house majority is linked to the former

president, and also the ones that went along with the election denialism in 2020 and took that into their own races in 2022, and it's part and parcel to being republican right now, and trumpism is something they are actively grappling with even though some lawmakers are saying, yeah, i am ready to move on, i am exhausted, he's still the frontrunner of their party right now. >> thank you so much. a bipartisan group of lawmakers are now back in the u.s. after meeting with the president of mexico. it comes as experts now say the level of cooperation between the u.s. and mexico on the war on drugs is at its lowest point in decades. joining us now with more, democratic congressman from texas, he was one that travelled to mexico. always a pleasure to see you. what stood out to you after your meetings with the president of mexico in this trip? >> first of all, it was not only

the president but he had the cabinet. they took four hours. it was a very interesting format. we would speak on one topic for 15 or 20 minutes and then they would speak. it went on and on for about four hours, a working lunch also. what is important is they are also saying they want to work with us. i know there are reports it's one of the lowest type of relationships, but in many ways when you talk to our people on the ground there and the mexican officials, we are trying to improve not only immigration, and not only stopping fentanyl but also on trade. there's more than $1.8 billion of trade between the u.s. and mexico. a lot of our industries depend on mexico for us to sell their products. >> congressman, the recent killings of americans, did that come up in the conversations with mexican officials? "the washington post" points out over 500 americans are still

missing in mexico. what did the folks you spoke with talk to you about that issue? >> we know fentanyl and a lot of that will be coming in through our ports of entry, but there's other ways, airports, mail, and it comes through mexico, and one of the things that the mexican president said when one of our senators asked him this question, will you talk to the chinese to stop sending the precursors over to mexico with fentanyl, and he committed and repeated it twice to make sure we understood what he was saying, and he said i will officially ask china to stop, to do their best to stop sending precursors and fentanyl to mexico and then going off to the u.s., and i thought that was significant and never learned him say that before. >> even though he has for the past week that fentanyl is not produced in mexico, and he said

it's america's problems. senator bob menendez was with us last week, and he said the mexican president is either deceiving himself or the mexican people, and to what level do they take the responsibility for the fentanyl crisis? >> what he and his cabinet are doing is trying to work with us, and for him to publicly say i will talk to china to stop the precursors from coming indirectly or directly, and he's saying there's a problem we are seeing that here and definitely in mexico. i thought it was important that he made that statement, and he said i will officially ask the chinese to stop the precursors from coming in. he talked about a joint

responsibility. he said, look, it's not only the law enforcement but you need to make sure you have the public awareness, the health, for americans to stop doing this type of drugs. the fentanyl, just a little bit can kill you. it's unfortunate what is happening with fentanyl, so he did talk about responsibility, and he talked about joint responsibility and he was saying don't just blame us, the mexicans, you, the americans have a responsibility also to stop the consumption, so he said i want to work with you, but please don't just put the blame on the mexicans by ourselves. >> congressman, thank you very much for being with us. really appreciate it. >> it was a pleasure. >> thank you. we are just hours away from the final of this year's baseball classic after an exciting two weeks. last night, japan after trailing

all night long had a ninth inning come back scoring two runs against mexico to secure its spot in tonight's final. team usa looking to defend the 2017 title after taking down cuba on sunday. can you tune in 7:00 p.m. eastern, 4:00 p.m. pacific. should be one incredible game. up next, how a so-called black tax may be hurting students in tennessee's largest school district. you are watching "josé diaz-balart reports" on msnbc. a with rinvoq. rinvoq is not a steroid, topical, or injection. it's one pill, once a day. many taking rinvoq saw clear or almost-clear skin while some saw up to 100% clear skin. and, they felt dramatic and fast itch relief some as early as 2 days. that's rinvoq relief. rinvoq can lower your ability to fight infections, including tb. serious infections and blood clots, some fatal,

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while flonase takes hours, astepro starts working in 30 minutes. so you can [ spray, spray ] astepro and go. 52 past the hour. schools are crumbling in memphis because city cannot afford repairs. one of thenb■ reasons for thatx something researchers call a black tax in which majority-black cities pay more to borrow money than white e1 communities. that money funds things like schools, roads and public projects. antonia hylton went to e1memphi. what did you find?xd

every morning, daphne packs lunch for her daughter andew niece. typically, theyxd would ride to the same school where daphne works. but in august, the routine turnedxd upside down. the roof of the library at their school caved in. sending three adults to the e.r. >> the kids have to go to school.t(ñr just pray from day to day that everything is safe.e1 >> the schoolñr has been closed. for years, memphis students have attended schools with over half 1%=9■ dollars in deferred maintenance costs. according to the county schoolfy board. a new study offers a clue as to why.e1 researchers found evidence that memphis has been harmed by what they call the black tax. a pattern in which cities with more blacklp residents pay high

borrowing costsj] compared to majority white communities, even when credit risk ise1 takene@q' account. the more black people, the more they charge. >> weok discovered -- >> reporter: thisó[■ woman foug for more e1funding. >> i've been in memphis my entire life. i can remember as a little girl going toçó elementary school. this is where i went to. the exact same thing. >> reporter: a professor studies the black tax. his team believeslp it has cost memphis more than $100 million. >> the3w■ market is acting as i the presence of the black people is something that makes it risky. >> reporter: we reached out to the major banks.çó-9■ all declined to comment.e1e1e1 the mayor plans to demand

answers. that's a major implication. >> that's a xdokdisrespect not to th"1 county but to ee/+v we haver community of lenders that we have what it takes. we just need to make sure that we are treated fairly. >> reporter: 20 minutes down the road, they have a higher bond ratingeó.s ande1 a new $100 mil high school. here in memphis, reverend green continues to fight an uphill ze5 and put on a brave face.çó >> don't children wholp look li me deserve to see better and to go inlpe1 places that look like schoolse1 look in other area sn how do we get there?ok >> reporter: that question was on everyone aels mind. thelp researchers recommend cits

like memphis dum$p'swers.xd ask them for othere1 citiecr th they are beingfá compared to an find out if they are being treated unfairly. see if a change can be made.e1 >> antonia hylton, thank you very much. so important. appreciate it. that wraps up the hour for me.e1 i'm jose diaz-balart. you can watch highlights from today's show online. i thank you for the privilege of your time.fá andrea mitchell picks up with more news after a quick break. g! we're just passing through on our way to the jazz jamboree. [ imitates trumpet playing ] and we wanted to thank america's number-one motorcycle insurer -for saving us money. -thank you. [ laughs ] mara, your parents are -- exactly like me? i know, right? well, cherish your friends and loved ones. let's roll, daddio! let's boogie-woogie! (vo) businesses nationwide are switching to verizon business internet. (woman) it's a perfect fit for my small business.

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right now on "andrea mitchell reports," law enforcement preparing from lower manhat÷ó to capitol hill for and unprecedented grand jury decision on whether to indict a former president. we will have a live report from outside the manhattan d.a.'s office. house republicans meeting in orlando. their conference overshadowed by the potential indictment of