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Fallout from Intel Shakeup in Trump Administration; China Evaluating Possible Trade Talks With U.S.; Gaza Aid Ship Catches Fire After Alleged Drone Attack. Aired 7-7:30a ET

Aired May 02, 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: Mike Waltz out as national security adviser tapped now to be U.N. ambassador. What this demotion/promotion means for Trump's inner circle and U.S. national security today.

And from a full stalemate to potential negotiations, China shifting its tone overnight saying it is assessing proposals now to begin trade talks with the U.S. Could this open the door to real talks?

OMAR JIMENEZ, CNN ANCHOR: And an aid ship heading to Gaza on fire after an alleged drone attack. The urgent calls for help on board this morning.

I'm Omar Jimenez with Kate Bolduan. Sara Sidner and John Berman are out this morning. And this is CNN News Central.

So, this morning, a question, is Donald Trump's inner circle falling apart or is he cleaning it up? There is growing fallout today from the first major White House shakeup since President Trump returned to office. His national security adviser, Mike Waltz, is out less than two months after a big mistake, adding a journalist to a Signal chat, discussing sensitive, if not classified U.S. military strikes in Yemen.

Lesson learned, maybe not. Just this week, Waltz was photographed in a cabinet meeting with Donald Trump appearing to be scrolling through that very same app, Signal, with chats with names labeled J.D. Vance, Marco Rubio, Gabbard. Rubio, the secretary of state, is now also being tapped to serve as national security adviser at least, for now.

So, Waltz is packing up and possibly headed to New York. Trump says that he will nominate Waltz as the U.S. ambassador to the United Nations, a post that requires Senate confirmation. Many Republican lawmakers are saying that Waltz's got a raw deal. Senator Ted Cruz calling it unfortunate news, Mike Brown saying that he is disappointed, Congressman Don Bacon saying Waltz was a great colleague and we all trusted him.

Democrats, as for them, they think that Donald Trump went after the wrong man saying, Defense Secretary Pete Hegseth is who should be losing his job, as he was the person to actually share the sensitive military details on the Signal chat. The Wall Street Journal is now reporting. The Pentagon watchdog is expanding its Signal chat investigation to include now Hegseth's second Signal chat, the one that involved his wife and his brother.

CNN's Alayna Treene starting us off, joining us now from West Palm Beach, Florida, this morning. So, Alayna, what is the latest that you are hearing about this shakeup?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Well, look, this was something, Kate, that was a long time coming. It did seem like a surprise to some people. But, internally, and from my conversations with top White House and Trump administration officials, it was clear that the writing was on the wall, that the president wanted to push Waltz out of his role as national security adviser.

They had long been very frustrated, they, as in the president himself, but also some of his closest aides, including Chief of Staff Susie Wiles. And some of this was before even before that Signal debacle, that Signal scandal, where he had added not only a journalist, but a journalist that President Trump very much dislikes to that Signal chain where they discuss sensitive information.

Even before that, you know, people like Susie Wiles and others had believed that Waltz did not have the same ideology, the same public view. He was too hawkish on some of the things that he was working on. And so, already, you know, again, there was writing on the wall that they did not want to keep him in this role.

Part of the reason it took so long, it took the two months since that Signal scandal to publicly try and oust him is because, one, the president did not want there to seem to be this kind of internal chaos that really bogged down his first administration. He wanted to wait to have Waltz, you know, until 100 days in or more, I was told to really oust a member of his level.

Now, we did hear from Vice President J.D. Vance trying to defend this move to push Waltz and put him into a new role. He tried to frame it as a promotion. Listen to what he said.

(BEGIN VIDEO CLIP)

BRET BAIER, FOX NEWS ANCHOR: Why was Mike Waltz let go?

[07:05:00]

J.D. VANCE, U.S. VICE PRESIDENT: So, he wasn't let go. He is being made ambassador to the United Nations, which, of course, is a Senate- confirmed position. I think he can make a good argument that it's a promotion.

Donald Trump has fired a lot of people. He doesn't give them Senate- confirmed appointments afterwards.

(END VIDEO CLIP)

TREENE: Now, Kate, I can tell you from my conversations with people in the White House, I mean, the U.N. ambassador role is not one that the president really cares that much about. That is it has been described to me many times, even back during the transition. So, I just want to put that note there.

And, of course, looking ahead now, one of the key challenges Waltz is going to face is it is a Senate-confirmed position, and many Democratic senators are very eager to get them him in front of them and grill him on what happened with that Signal scandal.

BOLDUAN: Yes. I mean, Mark Warner's telling Manu yesterday asked what confirmation's going to be like. Mark Warner just said simply pretty brutal. I mean, that was from one of the members that would be leading the questioning.

Overnight, Alayna the president, signed a new executive order this time now targeting PBS and NPR. What are you hearing about this?

TREENE: That's right. So, this executive order essentially would slash funding for PBS and NPR. It comes as the president, but also many Republicans on Capitol Hill, have tried to frame both of these outlets as being biased legally -- or, excuse me, a biased toward liberals.

Now, the order directs the Corporation for Public Bad Casting, which funds public broad casters across the United States to essentially end federal funding, again, for NPR and PBS. But just to give you a sense of how this works. So, these outlets receive, yes, some federal funding, but most of the funding that they get comes from taxpayer dollars and donors. And we know that each year, the CPP disperses about $535 million in taxpayer funds to these different public outlets.

It's unclear really, though, in the short-term what this impact is going to be. A lot of the time the CPB gives them this money and it's good for two years. So, we know that these different networks are kind of grappling with what this decision actually means from them.

But it's the latest sign of this Trump administration trying to take action against media outlets. We saw this with CBS and 60 Minutes that they believe are biased against them. Kate?

BOLDUAN: Yes. Alayna, thank you so much for starting us off. Omar?

JIMENEZ: Well, this morning, we're standing by for the release of the April jobs report next hour. So, we'll bring you that when it comes. But the report will give us some important clues about where the U.S. economy is headed as economic alarm bells have been sounding, recession odds have been climbing, and frustration in many camps has been building around Trump's economic policies, including his trade war with China specifically.

But breaking overnight, a slight tone shift from Beijing, China says it is currently assessing proposals by the United States to begin trade talks, and U.S. futures are higher this morning on that news, CNN's Marc Stewart joins us now from Beijing. So, Marc, what else are you hearing at this point? I believe we have -- oh, there you are. Marc, what else are you hearing this morning on this front?

MARC STEWART, CNN CORRESPONDENT: Hi, Omar. Good to see you. Let me just start by giving you the viewpoint from where I stand in China. This is very much being seen as a move by the United States, messaging from the United States to Beijing to perhaps take things a step further, to perhaps initiate talks.

Right now, the messages have been received, the envelopes, the emails have been opened, and that's where we stand. China is going to evaluate where it goes next. In fact, if we look at the statement from the government that came at 8:00 this morning, the exact phrasing is China is currently evaluating this.

The timing of this is very interesting because this statement was released during a holiday, a two-day holiday here in China, that perhaps suggests that it may have something to say. It could have perhaps waited until next week to make this kind a very visible remark.

At the same time, let's be clear, China does not want to appear that it's taking orders or actions from the United States. It does not want to be seen as the nation that caves into the United States. In fact, over the last few days, we have seen a lot of attention on social media, a lot of propaganda, very pro-nationalist themes by the Chinese government, saying that it will not kneel down. Another phrase we've heard is that bullies are paper tigers. It wants to stand defiant and it is sending a message, especially to people here in China that it's here for the long game.

Nonetheless, this is a bit of a break from this stalemate that we have seen and markets are reacting. You mentioned the U.S. futures. Today here in Asia, all of the major indexes closed in the green.

[07:10:00]

They all had gains. That includes South Korea, Japan, of course, the Hang Seng in Hong Kong, which has seen as a benchmark index.

Omar, I think it goes without saying, when there is financial tension, trade tension between the world's largest and second largest economies, it creates a lot of unease. Perhaps this is a small step forward.

JIMENEZ: Marc Stewart a lot to keep an eye on here, but, as we know, sometimes progress in, in these arenas goes very gradually. And if the posturing from China holds up, this will be a gradual process.

Marc Stewart, really appreciate it. Kate?

BOLDUAN: So, breaking overnight, flames engulf and aid ship bound for Gaza after an alleged drone attack in the Mediterranean. We've got new details on what we're learning about all of this. And the Trump administration is floating massive possible budget cuts that would mean eliminating dozens of substance abuse prevention and treatment programs, same treatments as medicines like NARCAN. This administration just announced it wanted to expand access to. I'm going to talk to a doctor who's an expert in the field and has seen firsthand how these meds save lives.

And Supreme Court Justice Ketanji Brown Jackson speaking out and condemning political attacks on judges. The message she's now sending President Trump.

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[07:15:00]

JIMENEZ: All right, everyone, welcome back. Breaking overnight, an aid ship headed for Gaza caught on fire after an alleged drone attack and it happened just off the coast of Malta.

So, that video was posted by the Freedom Flotilla Coalition. And as of now, CNN has not been able to independently verify the videos, but crew members sent out an SOS.

CNN's Jeremy Diamond joins me now from Tel Aviv. Jeremy, can you just tell us what more are we learning about this?

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, the Freedom Flotilla Coalition said that two drone strikes targeted the ship just off the coast of Malta. They say that there were drone strikes that hit the ship and they posted these videos showing the ship in flames and said that the generator at the front of the ship appear to have been the target.

We cannot independently verify what caused these explosions, but you just heard in that video there that very loud boom indicating some kind of explosion aboard the ship. The activist group is pointing the finger at Israel. We've asked the Israeli military for comments, but they have yet to respond to our inquiry so far.

We should note that Israel does have a history of taking action to block these flotillas, including military action. As we saw in 2010, there was a flotilla that was headed towards Gaza, Israeli naval commandos boarded the ship, and ten people were killed on board as a result of that Israeli military raid.

We should also note that an Israeli Air Force C-130 was observed on flight tracking software hours before this incident took place just off the coast of Malta flying at very low altitude. This ship was headed to Malta to pick up a group of activists, some of them prominent activists, like the climate and human rights activist, Greta Thunberg, for example. They were going to be boarding this ship and then heading for Gaza in an attempt to break the Israeli blockade on the Gaza Strip. That's because today marks two months since Israel has allowed any food, any water, any medical supplies into Gaza in what they say is an attempt to pressure Hamas into releasing more hostages. Now, Maltese authorities said that they sent a tugboat to assist this vessel, but that the crew and passengers on board refused to board. The lead organizer of this flotilla has said that the group is trying to arrange a small boat to go to the ship and to be able to safely get all of those aboard off the ship. They insist that they will continue their activism. Omar?

JIMENEZ: Jeremy Diamond, I really appreciate the reporting.

More news ahead, including new CNN reporting this morning on the Trump administration considering labeling some suspected cartel and gang members inside the U.S. as enemy combatants. We'll tell you why one former Trump official is warning it's a potential slippery slope to police state behavior.

Plus, CNN Sports Central, the New York Knicks moving on in the NBA playoffs, and the Kentucky Derby is this weekend.

Stay with us.

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[07:20:00]

BOLDUAN: Sports time. The New York Knicks are moving on in the NBA playoffs after taking down the Detroit Pistons, 116-1 13.

CNN's Andy Scholes joins us now. I always have to put the caveat out there. I am married to a rabid Pistons fan, so I am now prepared for a tough Friday ahead. What happened?

ANDY SCHOLES, CNN ANCHOR SPORTS: I'm sure he had a rough night for him, Kate. You know, the Pistons, they put up a great fight in game six and in this entire series, but, you know, Jalen Brunson was named the clutch player of the year this season, and he once again showed why in game six.

Late in this one, you know, it appeared that the series was headed for seven as Detroit had a seven-point lead with 2.5 to go. But Brunson is coming through once again. And with the game tied at 113, he crosses over Ausar Thompson and hits the dagger three. Brunson finished with 40. Knicks closed the game on an 11-1 run and win 116-113.

(BEGIN VIDEO CLIP)

JALEN BRUNSON, NEW YORK KNICKS GUARD: I don't want to like say it's going to be different, but obviously we're playing against the defending champs next time. So, it's going to be a lot different. They have experience, the Celtics have experience. And playing these guys, they were just physical. They just -- they were -- they brought the fight to us and then we had to respond, and then we did.

(END VIDEO CLIP)

SCHOLES: Yes. Celtics and Nicks will start their series Wednesday. Clippers meanwhile surviving to fight another day. James Harden having a bounce back game, he had 28 points, 8 assist. Clippers will win that one, 111-105 to force a game seven Saturday night in Denver.

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That one's on TNT.

And Denver fans going to need to lock in Saturday night because the Avalanche will also be playing in a game seven against the Stars in Dallas at the same time. Colorado's scoring four unanswered goals in the third period of game six. This one was unlucky for the Stars. They were trying to clear it but Sam Steel hits it off of Colin Blackwell and look at it, as it floats in for the goal. It was a true Avalanche in that third period. They would win 7-4.

And three other teams advancing to the second round last night in the Stanley Cup playoffs, Golden Knights eliminating the Wild, they're going to face the Oilers who beat the Kings. And the Maple Leafs also moving on as well, they will take on the defending champion Panthers in round two.

All right, and tomorrow, we've got the 151st running of the Kentucky Derby. Two-time Triple Crown-winning trainer Bob Baffert is back this year. He was suspended for the last three years after a 2021 winner Medina Spirit tested positive for a banned substance. Baffert did have two races in the field, Rodriguez and Citizen Bull, but Rodriguez was scratched from the race yesterday.

But here's the look of the field, the favorite for the derby this year. A horse named Journalism. There's also a publisher. And another favorite is Sandman.

But, Kate, there's like 100 percent chance of rain. I like Citizen Bull, the Baffert horse in this race, but I've been doing a little research. Luxor Cafe, a Japanese horse, does well in the mud. So, I'm looking at Luxor Cafe. And fun fact Luxor cafe's father, American Pharaoh, who won the Triple Crown. So, there you go. It's one of my picks.

BOLDUAN: The best part about it is if someone just like parachuted and started hearing that part of the conversation, they would think you were having absolute stroke on T.V. because it makes no sense. These names are so crazy, which is the best part.

I'm going to go with Chunk of Gold, I think, I saw way at the bottom, but I've heard Chunk of Gold, great in the mud.

SCHOLES: Hey, Kate, that's one of the best things about Kentucky Derby. You never know what's going to happen. I had Rich Strike a couple years ago to win. It was 80-1 odds, and it happened. It was one of the best days ever.

BOLDUAN: Fun fact, 10,000 bottles of bourbon are going to be consumed over this weekend for mid juleps, so what could go wrong?

SCHOLES: It sounds right.

BOLDUAN: Great to see you buddy. Thank you so much.

All right, a shakeup in the West Wing, President Trump ousts Mike Waltz as national security adviser, now trying to move him to the U.N. Why the White House is trying to call this a promotion, and national security experts say it is anything but.

And Supreme Court Justice Ketanji Brown Jackson criticizing the president, she says his attacks on the court system are, quote, undermining our Constitution and the rule of law.

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