Return to Transcripts main page

CNN News Central

U.S. Futures Tumble Amid Global Turmoil Over Trump's Tariffs; Rising River Levels Trigger Evacuations, Water Rescues in Kentucky; Florida-Houston Set top Tip Off for NCAA National Championship. Aired 7-7:30a ET

Aired April 07, 2025 - 07:00   ET

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

[07:00:00]

KATE BOLDUAN, CNN ANCHOR: Brace yourself. This morning, U.S. Stock Futures plunging after Asia suffers historic losses over the president's trade war. Donald Trump and his team responding with another shoulder shrug saying, just sit tight.

SARA SIDNER, CNN ANCHOR: This morning, in West Texas, a second child has died in the state's growing measles outbreak. Why HHS Secretary RFK Jr., someone who has repeatedly questioned vaccine efficacy, is now changing its tune.

And 19 people across several states confirmed dead after violent storms. Tornadoes and record flooding rocked the Central United States. This morning, evacuation orders underway as the treacherous conditions there continue. We will be there live.

I'm Sara Sidner with Kate Bolduan. John Berman is out today. This is CNN News Central.

BOLDUAN: The breaking news this morning, we are witnessing the rapid destruction of the market. Stock Futures are plunging this morning once again, as the turmoil from President Trump's trade war is rocking markets here in the United States and around the world. Donald Trump's baseline 10 percent tariff across the board, it went into effect Saturday. And also so many countries are bracing for more as the targeted tariffs that he announced are set to kick in Wednesday.

So far today, Hong Kong's main exchange dropped 13 percent. Taiwan's exchange saw its biggest one day loss on record, and the S&P is now nearing a bear market defined as a drop of 20 percent or more from a recent peak.

Add to that, billionaire hedge fund manager and Donald Trump supporter Bill Ackman is now somewhat leaving Wall Street's backlash to the tariffs, calling Trump's tariff plan a, quote, self-induced economic nuclear winter, also saying, this is not what we voted for.

Facing all of this brutal reality, the president and his team are offering mixed messages on a key question in all of this, which is, is the president willing to negotiate or are these tariffs here to stay?

Here was the president last night on the way back to Washington. (BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: Now, I am willing to deal with China, but they have to solve their surplus. We have a tremendous deficit problem with China.

And I do want to solve the deficit problem that we have with China, with the European Union and other nations, and they're going to have to do that. And if they want to talk about that, I'm open to talking.

(END VIDEO CLIP)

BOLDUAN: CNN's Matt Egan starting us off for what is going to be another rocky day. But what's happened already?

MATT EGAN, CNN REPORTER: Well, Kate, look, fear continues to dominate financial markets around the world. And make no mistake, this is all about the president's decision to launch a trade war.

Now, this is how bad things are. Futures are down 2 percent. This is actually good news. This is an improvement because, overnight, we saw Dow Futures were down 4 percent or so, about 1,500 points. You mentioned the Hang Seng in Hong Kong, this was the worst day for the Hang Seng since 1997 when Asian markets were in complete crisis mode, right.

And so this is an indication though that futures are going to open with the S&P trading just above what would be a bear market, right, which is that 20 percent decline. Just for some context here, if the S&P closed in a bear market today, this would be the second fastest bear market in history, second only to 2020 during COVID, and surpassing the 1987 crush.

Look at this. So, this is the S&P 500 so far this year. You could see things were getting a little bit rocky in February or March, and then liberation day came last week when the president rolled out his tariffs. And look at this, it's gone basically straight down. Since then, the S&P 500 lost over $5 trillion in value after liberation day. Look at this complete wipe out.

And you mentioned, Kate, that we are starting to hear from some notable billionaires speaking out. Bill Ackman, who endorsed Trump and has been a very outspoken supporter of elements of the Trump agenda, he is basically pleading with the president to change course.

[07:05:06]

He put out this tweet last night. He said that the president --

BOLDUAN: It was a lengthy statement.

EGAN: It was. Most of his are. But he said that the president has an opportunity on Monday to call a timeout and have the time to execute on fixing an unfair tariff system. He said, alternatively, we are heading for a self-induced economic nuclear winter, and we should start hunkering down. And, Kate, we may find out in the next few hours whether or not the president is going to heed these calls.

BOLDUAN: I mean, according to his team, they're coming this 90-day pause that he is asking for. There's no sign of it yet. Stand by to stand by.

And you have some context also just putting the beginning of the Trump administration into historical context in terms of the market.

EGAN: Yes, it's been atrocious, right? So, the S&P 500, since the president was sworn in, has lost 15 percent of its value. This is the worst start to any presidential term since the S&P 500 launched back in the 1950s. And, again, this is being driven by recession fears. We heard Goldman Sachs overnight came out and they bumped up their recession odds. They now say a 45 percent chance of a recession, although they said it would go even higher if the tariffs kick in.

BOLDUAN: But, again, even though the president tweeted about it, his team says his plan is not intentionally trying to crash the markets, so his team says,

EGAN: Yes.

BOLDUAN: Matt, thank you so much.

EGAN: Thanks, Kate.

BOLDUAN: Stick close, please. Sara?

SIDNER: All right. Speaking of what President Trump's team says with the global markets on edge and tumbling, President Trump and his White House team are sending mixed messages about whether he is open to negotiations on these new tariffs. The president on Air Force One last night indicated he was leaving the door open to talk, but he struck a different tone from his top advisers earlier to hear them tell it, there will be no negotiations and no delays.

(BEGIN VIDEO CLIP)

HOWARD LUTNICK, COMMERCE SECRETARY: There is no postponing. They are definitely going to stay in place for days and weeks.

UNIDENTIFIED FEMALE: Is President Trump willing to negotiate or are these tariffs permanent?

SCOTT BESSENT, TREASURY SECRETARY: Well, I think that's going to be a decision for President Trump.

PETER NAVARRO, TRUMP SENIOR COUNSELOR FOR TRADE AND MANUFACTURING: This is not a negotiation. This is a national emergency based on a trade deficit that's gotten out of control because of cheating.

(END VIDEO CLIP)

SIDNER: Some may argue, especially those looking at their 401(k)s, that there's a different kind of national emergency happening now, but CNN's Alayna Treene is at the White House for us. Alayna, what are we hearing this morning after those mixed messages that we heard over the weekend?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Well, Sara, I think two things can be true. I think there's no question that the president himself and directly really believes in these tariffs and wanting them to have lasting change on the world of conning. But at the same time, there's also this idea that I continue to pick up from my conversations with top Trump administration officials that they do want to have some sort of wins that they can point to, to really kind of keep the faith with the American people, to have people at least be a little bit more patient to see if this tariff plan can work out.

Now, despite what we heard the president say, you played some of that earlier on Air Force One, saying he's open to talking to different countries. He's open to eventually making a deal. He posted this last night, and this is where I think he really is at when it comes to this tariff plan. He said, quote, we have massive financial deficits with China, the European Union, and many others. The only way this problem can be cured is with all caps, tariffs. He went on to say they're already in effect and a beautiful thing to behold. Later on, it says, someday people will realize that terrorists through the United States of America are a very beautiful thing. We also saw him just post moments ago as well, really trying to further defend this tariff plan, Sara.

But, look, again, I think your point is very valid, and there's a lot of people at this White House who recognize as well that the markets are crashing, global markets, not just United States markets, global markets are crashing. People's 401(k)s are imploding. Americans are very concerned about what this means for them. And so there's definitely conversations going on behind the scenes about how do we get people to buy into this plan. Because on one hand, they believe in this, the president really does want to break the global trading order and reshape it, but there's also, of course, how much can Americans actually take, and that's a big question that they still have to address.

SIDNER: Yes. When you talk about the global markets, the Hang Seng this morning, Hong Kong's, down 13 percent. That is a huge drop.

Alayna Treene, thank you so much. We'll see what happens with this administration and what it does over the next days and weeks. Kate?

BOLDUAN: Coming up for us still this hour, the Trump administration has until the end of the day to return the man that is mistakenly deported to El Salvador. The latest on a judge's new order, we'll bring you an update.

And Kentucky is under a state of emergency right now as parts of the Kentucky River are near all-time record flood levels, and at least 19 people have been killed across seven states from the violent storms that they're now moving east.

[07:10:00]

And the incredible moment police rescue, a missing two-year-old baby found in a ditch.

(COMMERCIAL BREAK)

SIDNER: Well, some folks are worrying about the markets, there are people across the country worrying about their lives this morning. Kentucky is under a state of emergency as the Kentucky River keeps rising. Part of the river could reach record-breaking flood levels today in the wake of violent and deadly storms that have swept across the entire Central U.S.

[07:15:03]

CNN's Derek Van Dam is joining us now from The Weather Center. Derek, what are we seeing as far as these water levels and where they could go today?

DEREK VAN DAM, CNN METEOROLOGIST: Yes. Well, Sara, this storm is largely done, but now we're left with a cleanup and recovery efforts. But look at the damage that has already been ensued across this region, just incredible images coming out of Frankfurt and Monterey, Kentucky. This is near Lexington. We're talking about neighborhoods and homes that are isolated from their surroundings because of the flood waters that have crept into this region. Just terrifying moments, many swift water rescues, we heard about the state of emergency and also the rain that fell from the sky was tremendous.

You could see this observed, well, actually rainfall estimated totals here, and some of it largely located across Northern Kentucky, western portions of Tennessee and into Arkansas. The areas that we were warning about for several days, it was certainly a forecast that became realized. And now the aftermath as the water filters in from the smaller streams into the larger rivers, we're seeing these record levels approaching the. Frankfurt, Lock, for instance in the Kentucky River, we are currently at 48.27 feet, just shy of the record level, and it's surpassed its forecast crest. And it's likely to continue to get higher because of the rainfall totals that fell across the region.

Good news is the heavy rain has moved on from the region, but where it is still raining, we still have flashflood watches in and around the Atlanta Metropolitan region. You can see the flood warnings in place still across many of the areas of Kentucky and into Tennessee.

Storm system moves off the East Coast later today, certainly into the day tomorrow, another half an inch of rain for the entire eastern seaboard, but no significant flooding concerns out of this because the majority of the heaviest rainfall certainly took place across Tennessee and Kentucky. Sara?

SIDNER: All right. Derek Van Dam, a lot of people in peril this morning, I appreciate you.

Right ahead, as the Trump administration ramps up pressure on drug cartels, the CIA is weighing its authority to use lethal force against them.

And tonight's the night, I'm sorry, do you see these colors? My Florida Gators and the Houston Cougs will square off in the national title game for college basketball's top spot. And you know who I'm going for, no questions asked.

(COMMERCIAL BREAK)

[07:20:00]

BOLDUAN: Tonight is the big night for the Florida Gators and the University of Houston, the NCAA Men's Basketball Championship matchup, and what a road to the finish it has been already.

CNN's Coy Wire is in San Antonio with all the moments. And you had a little visit from our Sara this past week.

COY WIRE, CNN SPORTS ANCHOR: Woo, I had a little birdie come visit me down in San Antonio, Texas, and wait until you see some of the video that was captured. This three-week run to a national title all comes down to this Florida-Houston with a chance of a lifetime. I sat down with each of the two coaches who guided their teams here last night, the Gators, a team of overlooked scrappers, but they are a tightly knit group, always dancing, always that whole vibe, and so are their fans. Look at that girl, our very own Gator alum, Sara Sidner, weathering the ups and downs of the season with them, Florida seeking their first title in 18 years.

Here's a little talk I had with the coach about that dancing culture.

(BEGIN VIDEO CLIP)

TODD GOLDEN, FLORIDA HEAD COACH: Part of why we are good is because of that, you know, because of our good-natured fun that we have, our ability to be in the Final 4 for the first time and be light, you know, not be tense and, uptight going into this game. And it's something that is what our program's about.

WIRE: Okay. They say this is the last dance, things go the way you hope they go. Are we going to see you dancing in the locker room? And if so, what are you busting out? Old school spring --

GOLDEN: Yes, maybe the robot a little bit. I will not be dancing. I can promise you that, but I will be in the middle of it. I'm in the middle of the mosh pit going nuts, if we're fortunate enough to win.

(END VIDEO CLIP)

WIRE: All right. They will face Houston, who shocked the world, upsetting Duke. And check out their 69-year-old head coach, Kelvin Sampson. He has moves too. But make no mistake, this team is savage. This is them running, Kate, before the sun's up, prepping for this season, averaging about a five-minute mile as a team, old school toughness. The coach started his career at Montana State 44 years ago, always having to overcome the odds. He trains his players to fight too. Here's part of my chat with him.

(BEGIN VIDEO CLIP) KELVIN SAMPSON, HOUSTON HEAD COACH: You got to have a shtick. What is it that you do that where you can level the playing field a little bit, develop a chip on their shoulder. When you coach at the Montana, Texas, to Washington States, you always have a chip on your shoulder. And for me, that chip has never left my shoulder.

(END VIDEO CLIP)

WIRE: All right. With that chip on the shoulder mentality, coach is seeking his and Houston's first ever championship. It all goes down tonight, Kate. I found myself a ten-gallon hat with an extra gallon to fit my big old head. So, that's Sara Sidner comes down to join me here. Come on down on that big bird with her and we're going to watch the Gators, according to Sara, chomp, chomp.

BOLDUAN: You're annoyingly cute in a cowboy hat.

SIDNER: Oh, what's this?

BOLDUAN: Oh, I'm sorry. What just --

SIDNER: Now there are two, but there will be only one and we will be number one. Just remember that, Coy. And I like the hat. It's nice. Poor Kate.

BOLDUAN: All I know is I'm a bit terrified to be the fans that was on the receiving end of your high fives because you assaulted them.

SIDNER: That is true. They were. But they were so happy. We were all so happy.

BOLDUAN: Or scared of you, or scared of you.

[07:25:01]

I would've been like, I'll root for anybody. You tell me too, lady.

Coy, thank you so much and I would expect to see some of your dances a little later. Thank you, sir.

With that, we will be right back, friends,

(COMMERCIAL BREAK)

SIDNER: All right. Breaking this morning, as countries around the world feel the ripple effect from President Trump's tariffs, Asian markets plunged overnight, deepening a global stock route triggered by China's forceful response to those unexpectedly high tariffs.

[07:30:04]

CNN's Marc Stewart has the very latest from Beijing for us this morning.