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U.S. Pressures Ukraine to Accept Peace Deal; Thousands Gather to Pay Pope Francis' Last Respects; E.U. Slaps Meta, Apple for Fines. Aired 3-4a ET

Aired April 24, 2025 - 03:00   ET

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

[02:59:41]

ROSEMARY CHURCH, CNN ANCHOR: You are looking at live pictures from Jerusalem as Israel prepares to mark Holocaust Remembrance Day.

Let's get right to CNN's Oren Liebermann, who is on the scene. So, Oren, what can we expect to see and hear in the next few seconds?

[03:00:00]

OREN LIEBERMANN, CNN CORRESPONDENT: Rosemary, right at the top of the hour here, so in just a few seconds here, we'll hear the siren that marks the commemoration, the marking of Holocaust Remembrance Day here in Israel and the entire country will come to a stop.

This is the Mahane Yehuda market here behind me. It's one of the main markets in the city of Jerusalem. And you'll see that everyone here pauses, but it's not just people who are walking around and out on the street.

It's cars on the roads as well throughout the country. It's quite an incredible way to see it happen as the entire country comes to a stop.

And there is the siren. I'll step out of the way as we look in here behind me during this siren.

(LIVE VIDEO FEED)

(LIVE VIDEO FEED ENDS)

LIEBERMANN: The end of the siren there winding down now.

And frankly, you can see the market, the country sort of gets back to what it was doing after that moment of pause there. Obviously, the holiday has a very different meaning here, effectively an extra meaning. It's the second time Holocaust Remembrance Day has been marked since the beginning of the war.

We heard two very different messages from Israel's leaders last night on the eve of the holiday. President Isaac Herzog, the head of state, talked about the need for unity. He said enough hatred, enough polarization. Meanwhile, Prime Minister Benjamin Netanyahu said on this Holocaust

Remembrance Day he promised the war would continue until his goals, the goals of the destruction of Hamas and the return of the hostages. So two very different messages there, Rosemary.

CHURCH: Yes, and Oren, I did want to ask you about that. I mean, how much more difficult is this day for Israel with hostages still being held in Gaza and, of course, the war raging on in the enclave?

LIEBERMANN: It certainly makes this a much more difficult holiday as is. And it's already one of the more somber holidays throughout the year here.

I'll also point out that Hamas released a video last night on the eve of the holiday of a hostage being held, Omri Miran. The family has asked us not to show or release images from there.

The video appears to show Miran being held underground and being walked through tunnels. But the family released a very powerful statement calling it a, quote, "moral failure" of the state of Israel that there are still hostages in Gaza on Holocaust Remembrance Day and that never again has to mean something, and that includes bringing the hostages home.

CHURCH: All right. Our thanks to CNN's Oren Liebermann joining us there live from Jerusalem on this day commemorating the lost lives, six million Jews lost as a result of Nazi Germany.

We're turning now to Ukraine and scenes of utter devastation in the capital following a new barrage of Russian strikes.

Emergency officials say at least nine people are dead and more than 70 wounded in Kyiv after drones and missiles hit the city in the past few hours. Rescuers are seen here at an apartment building flattened by the attack.

Officials say a number of buildings caught fire and the search is ongoing for people trapped under the rubble.

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Explosions rang out across the city as air raid sirens blared for hours. Russian missile strikes were also reported in Ukraine's second largest city, Kharkiv.

[03:05:01]

Ukraine is also under growing political pressure from Washington to accept a U.S. proposed peace plan. President Donald Trump lashed out at Ukrainian President Volodymyr Zelenskyy on Wednesday after he again made clear Kyiv will not recognize Russia's control of Crimea. That's a key part of the U.S. proposal according to sources who spoke with CNN.

U.S. Vice President J.D. Vance added even more pressure on Wednesday saying the territorial lines in Ukraine should be frozen somewhere close to the existing lines.

Russia currently controls about 20 percent of Ukraine with six million Ukrainians living under Russian occupation. President Zelenskyy has long said that ceding Crimea is a non-starter because it would violate Ukraine's constitution, but President Trump appears to be losing patience.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: I just want to see the war end. I don't care. If they're both happy, they both sign an agreement.

I have no favorites, I don't want to have any favorites. I want to have a deal done. I want to save their lives.

(END VIDEO CLIP)

CHURCH: Meanwhile, America's top diplomat skipped a meeting in London aimed at bringing the war in Ukraine to an end. CNN's Nic Robertson has more.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: So the meeting in London scaled down. Secretary of State Marco Rubio unable to attend for logistical issues just a few days ago in Paris Friday. He was the one saying that the Europeans, Ukrainians really needed to move on.

They communicated to them, communicated to the Russians what a broad plan would be and that they should move on. That was echoed again today by the Vice President, J.D. Vance, saying it was time for all parties to make decisions.

J.D. VANCE, U.S. VICE PRESIDENT: We've issued a very explicit proposal to both the Russians and the Ukrainians. And it's time for them to either say yes or for the United States to walk away from this process. We've engaged in an extraordinary amount of diplomacy, of on the ground work.

ROBERTSON: So in that context of a demand for speed, surprising that Secretary Rubio didn't come to London. The meetings downgraded to officials level. The Foreign Minister and Defense Minister of Ukraine did come to London, met with their counterparts here.

And interesting to hear the analysis of the British Defense Secretary about President Putin's so-called 30 hour truce over the Easter weekend. He said that the British intelligence services didn't believe Putin had adhered to that truce. In fact, went on to say that it is Putin who is playing for time, dragging his heels here.

JOHN HEALEY, BRITISH DEFENSE SECRETARY: So while Putin has said he declared an Easter truce, he broke it. While Putin says he wants peace, he's rejected a full ceasefire. And while Putin says he wants to put an end to the fighting, he continues to play for time in the negotiations. ROBERTSON: President Trump today again doubled down on Volodymyr

Zelenskyy, the Ukrainian president, saying that he has no cards and he needs to get on with this deal now. That what he's talking about, what Zelenskyy is talking about, about Crimea, are not accepting what the United States seems to be ready to accept, that Russia should keep control of Crimea.

Zelenskyy says that's a red line. Trump saying very clearly it is Zelenskyy that needs to get on and sign the deal.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

CHURCH: Matthew Schmidt is associate professor of national security at the University of New Haven and an expert in strategic analysis of foreign affairs and military matters. Appreciate you joining us.

MATTHEW SCHMIDT, ASSOC. PROF. OF NATIONAL SECURITY, UNIVERSITY OF NEW HAVEN, AND STRATEGIC ANALYSIS OF FOREIGN AFFAIRS AND MILITARY EXPERT: Good to be here.

CHURCH: So Donald Trump is pressuring Ukraine's President Zelenskyy to make a deal rather than pressuring the aggressor in this conflict, Vladimir Putin. And President Trump says he doesn't care if Russia ends up getting Crimea in these negotiations. He just wants a deal.

And his Vice President, J.D. Vance suggests a freeze on all current territorial lines as a basis for a deal. So what is your reaction to all of this?

SCHMIDT: My reaction to all of this is just a few months ago we never would have believed that this is possible.

My next reaction is that Vladimir Putin is absolutely using Donald Trump to achieve his aims. You can achieve strategic aims with military means or other means. And what's going on ultimately is that the process to discuss the negotiations is being used by Putin to expose the fact that America is going to abandon Europe and then to split apart the NATO alliance, which has been the most successful military alliance in history.

CHURCH: And President Trump has been frustrated that a peace deal has proved so elusive.

[03:10:03]

But he seems to think that a deal will be made this week, but said Wednesday that he thought Zelenskyy would have been easier to work with than he's proved to be so far. What do you think he meant by this and how likely is a deal at this juncture?

SCHMIDT: I think what he meant is that he expected Zelenskyy to grovel, right? And to thank Donald Trump for setting up these negotiations and for ending the war. And that Zelenskyy turned out to not do those kinds of things. This is really an impossible situation for Zelenskyy. It's one thing to accept the facts on the ground about Russian occupation.

It's another thing to give up legal claim to places like Crimea or the Donbas, meaning that years from now Ukraine couldn't claim to have those territories back. And these are positions that Zelenskyy has staked out for years now.

And so to have the United States come in and say either you give up those positions, which Zelenskyy can't give up for his own people, for his own political sake in Ukraine, is just unprecedented to see this kind of attack on an ally, to force an ally to give up bargaining positions instead of the enemy.

CHURCH: And Zelenskyy said that Russia didn't adhere to the Easter ceasefire. So how can the U.S. and Ukraine be sure that Russia will abide by any longer term ceasefire?

SCHMIDT: They simply can't. This is Zelenskyy's position, which is we need to establish a short term ceasefire.

We need to establish that Russia will follow that ceasefire before we can start to discuss things like the line of contact and territorial claims and things like this. And it's Russia's position to ignore that and to force long term negotiations without having shown good faith.

And that's exactly the position that the United States is forcing onto Ukraine. And that, again, is what's so untenable here. Zelenskyy can't accept the terms of the agreement as presented this week.

CHURCH: And Matthew, meantime, British officials say Ukraine talks held in London were, quote, "productive and successful," despite U.S. Secretary of State Marco Rubio pulling out last minute. Why did he do that and what might it signal to you?

SCHMIDT: He's doing it to put more pressure on Ukraine, to isolate Ukraine and to say we told you that we are going to withdraw support. Here's another instance of that, another indication that we mean what we say.

This is all part of one larger pressure campaign in order to push Ukraine to accept Donald Trump's deal because Donald Trump wants to be seen as the peacemaker. He wants that Nobel Peace Prize. And he wants so-called peace at any cost, whether or not it's going to reignite the war in two years, because he wants it for himself and his own legacy.

He's not really interested in what Ukraine needs.

CHURCH: Matthew Schmidt, I appreciate you joining us. Thank you.

SCHMIDT: Always.

CHURCH: Tensions are rising between India and Pakistan after the deadliest attack on civilians in India in nearly two decades. Protesters in three Indian cities blamed Pakistan for Tuesday's terror attack in Jammu and Kashmir when gunmen killed at least 26 people and wounded a dozen others at a popular tourist spot in the Himalayas.

Demonstrators burned Pakistani flags, chanted Down with Pakistan and held signs reading Stop Terrorism. Pakistan denies any role in Tuesday's massacre.

A little-known militant group called the Resistance Front claimed responsibility, though Indian authorities are still investigating and searching for the gunmen.

The Indian government has now suspended a critical water treaty with Pakistan, one of several measures against its neighbor.

(BEGIN VIDEO CLIP)

VIKRAM MISRI, INDIAN FOREIGN SECRETARY: The Indus Waters Treaty of 1960 will be held in abeyance with immediate effect. The integrated check post Atari will be closed with immediate effect.

Pakistani nationals will not be permitted to travel to India under the Saarc visa exemption scheme visas. The defense, military, naval and air advisers in the Pakistani High Commission in New Delhi are declared persona non grata. Support staff of the service advisers will also be withdrawn from both High Commissions.

(END VIDEO CLIP)

CHURCH: Pakistan's Foreign Secretary denounced the suspension of the water treaty. Islamabad's National Security Committee is set to meet today to determine its response.

Long lines and wait times as large crowds say farewell to Pope Francis who's now lying in state at St Peter's Basilica. Details when we come back.

[03:15:05]

Plus, a convicted Cardinal is demanding to be part of the conclave that will pick a new Pope. A standoff brewing at the Vatican, that's next.

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CHURCH: We are looking at live images from the Vatican where thousands of mourners have been patiently waiting to pay their respects to Pope Francis. The famous doors to the Basilica reopened to the public about two hours ago and will remain open until midnight local time.

[03:20:07]

And people have been standing in line for hours just to spend a few seconds before the Pope's open coffin to honor his life and compassionate leadership. The pontiff is lying in state at St Peter's Basilica until his funeral on Saturday. Then nine days of official mourning will follow and a conclave will later be held to elect the next Pope. We go live now to Rome and CNN's Barbie Latza Nadeau. Good to see you

Barbie. So we are of course seeing these long lines of the faithful waiting patiently for their turn to pay their last respects to Pope Francis. What are they telling you about how they'll remember him and of course his legacy?

BARBIE LATZA NADEAU, CNN REPORTER: Yes, you know the people who are standing in that line, there's really a mixed bag. I was talking to some people yesterday and there were nuns and priests, there were devout Catholics, there were also just tourists who just want to be part of the spectacle and the pomp and circumstance.

But overall I think this Pope will be remembered most for his welcoming humility, especially here in the city of Rome where he did so much for the homeless people, he did so much for the migrants. All these things that touch the hearts of everyday Romans and Italians will mean a lot to them obviously and he'll be remembered for all he did around the world for the people in marginalized communities.

And I think people are really reflecting. Of course the mourning then turns to sort of a celebration of his life but those people who are waiting in line for hours and hours are going to get that chance of a lifetime for many.

But I was also speaking to an elderly neighbor of mine, an Italian neighbor who's been going to see these Popes since John Paul I. And so elderly as she is, she was going to go stand in line so that she could have basically her fourth papal experience. So there are all sorts of different people in those lines, Rosemary.

CHURCH: It's remarkable of course. And Barbie, what more are you learning about funeral preparations for Saturday and of course for the Conclave that will come later to choose the next Pope?

LATZA NADEAU: Well, the mayor's office said they're expecting 170 heads of state or government which is obviously a big security headache for the city of Rome. And they're preparing for about 250,000 people to be part of the celebration. Now that will be in the main square and that will extend of course down the corridors and the streets around that.

So there's a big security issue with it. And then there's a six- kilometer route that his body will be carried or driven, we're not sure quite on the dynamic of that yet, from St. Peter's to Santa Maria Maggiore which is the church where he'll be buried.

So all of those logistics the city of Rome is working on. They've got a lot of military here. They've got a lot of security here.

So this is a big logistic issue. But then of course just the solemn mass, imagining him just like John Paul II certainly.

I remember that funeral sitting in the middle of St. Peter's Square laid out with all these people around and all of the cardinals in their finest robes. It's really quite pomp and circumstance, ritual. It's just really an incredible sight to see and I think people are really looking forward to that on many levels.

CHURCH: Yes, it certainly is. And to be a part of that of course.

Barbie Latza Nadeau, joining us live from Rome. Many thanks.

A controversial cardinal is claiming he can take part in the upcoming conclave despite being listed as a non-elector. Cardinal Giovanni Angelo Biciu became the first cardinal to be convicted in the Vatican's criminal court when he was found guilty of embezzlement and fraud in 2023. He maintains his innocence and his appeal is still under consideration.

CNN's Christopher Lamb told our Anderson Cooper what the cardinal is claiming.

(BEGIN VIDEO CLIP)

CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: He has told reporters in Sardinia, local reporters there, that he can go to the conclave, that although he lost those rights and responsibilities and privileges, it was never stated that he can't go to the conclave.

ANDERSON COOPER, CNN ANCHOR: So is he still a cardinal?

LAMB: He's still a cardinal. He's considered a retired cardinal, but the Vatican lists him as a non-elector so he can attend the meetings leading up to the conclave, but he can't, according to the Vatican at least, go inside the Sistine Chapel. But he says he can.

Basically it's up to those who are running the conclave, the dean, of course those who watch "Conclave", the movie will know about the dean, and other senior figures to work out what they're going to do about this situation.

(END VIDEO CLIP)

CHURCH: Still ahead this hour, Donald Trump says the clock is ticking for countries to make a trade deal with the U.S., we'll find out what happens if they don't.

Plus, Chinese sources tell CNN they believe they have the upper hand in the trade war with Washington, the three things they're demanding from U.S. negotiators after the break.

[03:25:06]

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[03:30:00]

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CHURCH: Welcome back to "CNN Newsroom." I'm Rosemary Church. I want to check today's top stories for you.

Massive crowds are arriving at the Vatican to pay tribute to Pope Francis for his second day. His body is lying in state at St. Peter's Basilica ahead of his funeral on Saturday, which will mark the beginning of nine days of mourning.

U.S. President Donald Trump is ramping up pressure on Ukraine to accept a peace plan to end the war with Russia. President Volodymyr Zelenskyy reiterated Wednesday that Ukraine will not recognize Russia's control over Crimea, which is reportedly part of the deal. He says that would violate Ukraine's constitution.

Israel is marking Holocaust Remembrance Day. Prime Minister Benjamin Netanyahu laid a wreath at the Yad Vashem Memorial in Jerusalem. The day commemorates the six million Jews murdered in the Holocaust by Nazi Germany and its allies and recognizes the strength of the Jewish people.

Well, now to the U.S. trade war with China and another day of mixed messages from the White House. President Donald Trump says he could start reimposing reciprocal tariffs on some countries in the next two or three weeks if they don't make deals with the U.S. But he is much more optimistic about China, claiming direct talks are happening every day.

Meanwhile, Treasury Secretary Scott Bessent warned it could take two to three years to rebalance trade with Beijing. Here's the president.

(BEGIN VIDEO CLIP)

TRUMP: I think what's going to happen is we're going to have great deals. And by the way, if we don't have a deal with a company or a country, we're going to set the tariff. We just set the tariff.

It's something that we think that will happen, I'd say, over the next couple of weeks. Wouldn't you say? I think so. Over the next two, three weeks, we'll be setting the number.

And we're going to pick. Could be for China, too. Could be for China.

(END VIDEO CLIP)

CHURCH: Sources tell CNN President Trump's latest tariff gyrations came after a Monday meeting with the CEOs of major retailers. They reportedly warned the president his policies will mean a supply chain disruptions and empty store shelves.

Investors on Wall Street have been encouraged by the prospect of reduced tariffs on China, with significant gains for the second day in a row on Wednesday. CNN's Vanessa Yurkevich reports.

(BEGIN VIDEOTAPE)

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Investors have told me over the past couple of days that they've really been tracking two storylines. One, what is happening with the trade war and what is the fate of Jerome Powell, the head of the Federal Reserve.

And they've received encouraging news on both fronts, both from the Treasury secretary and from the President. The President said that he was not going to terminate Jerome Powell, the head of the Federal Reserve. Investors were very worried about the Fed's independence and sort of the independence of the head of the Federal Reserve himself.

And then we heard from the president that he is essentially looking to de-escalate this trade war with China. That was also welcome news on Wall Street.

But the Wall Street and the Dow closed down 400 points off the session high for the day. Maybe investors were enjoying their profits a little bit. And investors told me that just as much as they heard encouraging news from the president and his cabinet, that could change very quickly.

But just look at CNN's fear and greed index. We are in fear territory right now. And I bring that up only because for the past several weeks we've been in extreme fear, we haven't been in the fear space since March 27th.

But that does not erase the $6.5 trillion in losses that the stock market has seen since February and the $2.5 trillion in losses that we've seen since the beginning of April when President Trump really ratcheted up this trade war.

And I want to read you something from Greg McBride. He's the chief financial analyst at Bankrate. This is how he kind of summed up how the markets and investors are feeling right now.

He told me that "A softer tone about the Federal Reserve is welcome news to investors, and the market has responded to that. Turning down the heat in the trade war with China is nice to hear, but it will ultimately need to be followed up by action. Where the rubber meets the road is in the details of an eventual trade agreement. Until then, uncertainty will continue to hang over the economy and financial markets."

(END VIDEOTAPE)

CHURCH: And trading is just getting underway this hour on financial markets in Europe. You see there they're all in the red.

We take a look now at the Asia-Pacific region and a mixed bag there. Japan's Nikkei up nearly half a percent, but the Hang Seng in Hong Kong down more than one percent.

[03:35:01]

And turning to U.S. futures, all in the red as we wait just a few hours from opening the markets, opening bell going off. And we'll see what happens in the day ahead.

Donald Trump's kinder, gentler approach to China seems to be having little impact in Beijing, which sees itself as having the upper hand in the trade war. CNN's Beijing bureau chief Steven Jiang has that story.

(BEGIN VIDEOTAPE)

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: China's response to the dramatic climb down from President Trump and the equally telling remarks by his Treasury Secretary, rather predictable, with a government spokesman on Wednesday reiterating that Beijing would fight this trade war to the end if needed, but also leaving the door open for potential talks, stressing though that they would not negotiate under threats or pressure.

Now this kind of consistency is why a lot of people both inside and outside the Chinese government would probably agree that without having to do much, Beijing already seems to have the upper hand here in this latest round of exchange, because in contrast to all these flip-flopping and twists and turns from Washington, the Chinese have been standing their ground.

They want to be perceived as the upholder of international order and norms. They really want to be seen as the adult in the room, if you will.

And that's perhaps due to them studying Mr. Trump for a long time, and the conclusion from here seems to be concessions will only invite more pressure, and the only language this president understands and respects is leverage.

Now very interestingly, just a few days ago, I talked to a well- connected source who is familiar with the leadership's thinking here, and he told me oftentimes they would notice Mr. Trump talking very nice and sweet about China, about his relationship with Chinese leader Xi Jinping.

Then quickly they would notice Mr. Trump's cabinet secretaries and senior officials, again, spewing out very hawkish views about China, and this source said, given Mr. Trump's total control over his people now, by not publicly rejecting those hostile views towards China, the president seemed to be condoning them, and that just very much runs counter to three things they really want to see from the White House before any progress can be made on those potential trade talks, and those things are reciprocity, sincerity, and perhaps more importantly, consistency.

Steven Jiang, CNN, Beijing.

(END VIDEOTAPE)

CHURCH: The Trump administration has now revoked student visas in nearly every corner of the country as part of a vast immigration crackdown, and few universities know why. By CNN's count, more than 1500 international students, recent graduates, and universities have had their visas or statuses terminated so far this year.

That number includes more than 200 colleges and institutions. Reasons for why so many visas are being revoked remain murky, but the U.S. Secretary of State has said that some behavior, including participating in protests, will not be tolerated. It's unclear if the students whose visas have been terminated must leave the country immediately or if they can stay to continue their education.

Meta and Apple are facing hundreds of millions of dollars in fines under a landmark digital law. Coming up, how the U.S. tech giants are responding to the European Union's penalties.

Plus, Tesla shares jump after Elon Musk says he's going to dial back his work with the Trump administration. But is it too late to reverse the damage he's done to his own company? We'll take a closer look.

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[03:40:00]

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CHURCH: The European Union has fined Apple and Meta nearly $800 million combined in the first enforcement of its landmark digital competition law. The antitrust fines risk escalating tensions between the E.U. and the Trump administration, as CNN's Clare Sebastian explains.

(BEGIN VIDEOTAPE)

CLARE SEBASTIAN, CNN CORRESPONDENT: Well, this was a delicate moment for the European Union given the current trade climate.

On the one hand, they had to be seen to be enforcing their digital laws. But with Trump's reciprocal tariffs paused and Europe hoping they'll be dropped completely, they also had reason to avoid inflaming further tensions with the U.S., especially because the Trump administration has made it clear it sees Europe's tech regulations as non-tariff barriers against which it could retaliate with tariffs.

So the fines themselves are relatively modest. Apple, which was found by the E.U. to not be doing enough to allow app developers to steer users to offers outside the App Store, were fined around $570 million. Small change for a company that made almost $400 billion in annual revenue last year.

Now Meta, which the E.U. says through its consent or pay system on Facebook and Instagram didn't offer users who didn't consent to their personal data being used for personalized advertising and equivalent service which uses less of their personal data, were hit with a fine of around $230 million. Previous antitrust penalties in Europe have been in the billions.

But there's a sting. Both companies have to pay the fines and change their behavior within 60 days. Meta already has a fix in place which the E.U. is assessing.

Or they risk fines going up. And both companies have slammed the decision.

Apple promising to appeal, saying the E.U. decisions are quote "bad for the privacy and security of our users, bad for products and force us to give away our technology for free." [03:45:06]

Meta, going even further, saying that the commission forcing us to change our business model effectively imposes a multi-billion dollar tariff on Meta while requiring us to offer an inferior service.

The pointed use there of the word tariff, which this isn't, making it clear that while the E.U. is still willing to get tough on tech, the political climate and Trump's trade war have raised the stakes.

Clare Sebastian CNN, London.

(END VIDEOTAPE)

CHURCH: Tesla shares got a boost on Wednesday, jumping more than five percent. One day after Elon Musk said he'd be spending less time on Donald Trump's Department of Government Efficiency or DOGE and more time running his electric vehicle company.

Tesla's profits have plunged 71 percent in the first three months of the year. Sales have been slumping due to strong competition from Chinese car makers and because Musk's work with DOGE and his support of far-right groups has turned off many people from buying Teslas.

Earlier, my colleague John Vause spoke with Alan Root, an associate editor at the financial magazine "Barron's," about whether Musk can reverse the damage already done to Tesla.

(BEGIN VIDEO CLIP)

ALAN ROOT, ASSOC. EDITOR, "BARRON'S": Now is the brand damage that Tesla management actually admitted to on the Q1 earnings call. Permanent, you know, we'll have to see. Stepping back from DOGE is a great thing.

You see that Tesla's first quarter earnings were relatively weak. The stock still went up five percent mostly because Elon was going to spend more time in Austin, Texas, less time in Washington, D.C.

As opposed to, as part of laying low, I mean, you know, he does need to repair some of the damage, whether that is launching new vehicles. Tesla would argue that launching self-driving robo-taxis will help restore some of the luster.

They won't be in sort of a Bud Light situation by virtue of improving products and expanding product lines. So time will tell.

But Tesla is Musk and Musk is Tesla. He's inextricably linked to the brand and the company. So lying low might not be enough.

It'll just be it really is up to him in terms of change of behavior and tone to see if he can bring back some of those left-leaning people that are more willing to buy E.V.s that he alienated in the first quarter.

In some respects, investors would love it if the President listened to Elon because he is no fan of tariffs. That was the big blow up between him and Peter Navarro. The Scott Besent blow up probably also related to tariffs. Elon is more of a free trader.

So if in a perfect world investors got exactly what they wanted, they would have Elon focused on the car company and they would have the president leaning a little more his way about tariffs. That would be a near-term euphoric solution for investors. We might not get that much.

But some of those tensions are probably around tariffs, but I don't necessarily think it means that he's going to leave Washington completely with his tail between his legs.

(END VIDEO CLIP)

CHURCH: The Trump administration appears to be standing by the embattled U.S. Defense Secretary. Vice President J.D. Vance says he has 100 percent confidence in Pete Hegseth. This comes after reports emerged that Hegseth discussed military plans in a second Signal group chat that included his wife and his brother.

One Republican senator suggests how Hegseth could avoid future missteps.

(BEGIN VIDEO CLIP)

SEN. KEVIN CRAMER (R-ND): I would hope that he's learned. I'm confident he has. I'm confident that Pete Hegseth can still be and will be a great Secretary of Defense.

He's going to need some help around him. I think one of the things he has lacked in the early days is some real expertise, institutional expertise in the building. I think the monster that is the Pentagon was a bigger monster perhaps than he even thought.

(END VIDEO CLIP)

CHURCH: CNN's Brian Todd reports on the involvement of Hegseth's wife in his new role as Pentagon chief.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): She's not formally employed at the Pentagon, and it's unclear whether she has a security clearance, though a source tells CNN she's applied for one. A Pentagon spokesperson said the department does not discuss security clearances for any individual.

But Jennifer Hegseth is now firmly entrenched in her husband's inner circle and in his controversies. Jennifer Hegseth was in a recent second Signal group chat in which her husband, Defense Secretary Pete Hegseth, shared sensitive information about U.S. military operations against the Houthi rebels.

Pete Hegseth didn't refute the reporting that he'd shared information on a Signal chat with his wife, but did say this to Fox News. PETE HEGSETH, U.S. DEFENSE SECRETARY: What was shared over Signal then and now, however you characterize it, was informal, unclassified coordinations for media coordination and other things.

[03:50:01]

TODD (voice-over): Jennifer Hegseth met her husband when they both worked at Fox News. Each has three children from previous marriages, and they have one child together.

Jennifer Hegseth has been perpetually by her husband's side since his confirmation process earlier this year. She often went with him to his meetings with senators on Capitol Hill.

And a Senate aide tells CNN there was particular frustration among female senators that Jennifer Hegseth was there because they were looking to ask Pete Hegseth about allegations against him of sexual assault, which he has denied.

Jennifer Hegseth's presence at those meetings, quote, "totally changed the dynamic of the conversations about the assault allegations," the aide said.

COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: Really put a damper on those senators' ability to actually ask the most sensitive questions and to get a real flavor for what he was all about, whether he was being truthful or whether he was, you know, trying to hide something.

TODD (voice-over): Multiple sources tell CNN Pete Hegseth has grown increasingly paranoid about potential leaks to the media within the Pentagon and has begun depending on a smaller circle for counsel, including his wife.

A U.S. official tells CNN Jennifer Hegseth shares her husband's distrust of many media outlets besides Fox. Jennifer Hegseth has also attended at least one official meeting with her husband at the Pentagon in March with Britain's defense secretary.

Pentagon press secretary Kingsley Wilson tells CNN that Jennifer Hegseth, quote, "exited the meeting before any sensitive and classified discussions occurred."

Still, one watchdog says her mere presence at that meeting could send concerning signals.

GREG WILLIAMS, DIRECTOR, PROJECT ON GOVERNMENT OVERSIGHT'S CENTER FOR DEFENSE INFORMATION: If foreign leaders can't count on our secretary of defense not to share sensitive information with their spouse or other personal connections, whether via signal or in-person meetings, it inevitably lessens their willingness to share sensitive information with us. That makes us less safe.

TODD: Pentagon press secretary Kingsley Wilson tells CNN that Jennifer Hegseth is a, quote, "incredibly accomplished woman and leader." Wilson also said of her that she is a trusted advisor to her husband and an advocate for military families.

Brian Todd, CNN, Washington.

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CHURCH: Just ahead, thousands of people pour into the Vatican to pay their last respects to Pope Francis. We will show you the mood inside St. Peter's Basilica.

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CHURCH: The second day of public tributes to Pope Francis is playing out at the Vatican right now. We are seeing huge crowds quietly and respectfully filing into St. Peter's Basilica. Many of the mourners have waited in line for hours.

Pope Francis died on Easter Monday after 12 years of leading the world's 1.4 billion Catholics.

[03:55:01]

His funeral will be held in a packed St. Peter's Square on Saturday and is expected to draw multitudes of the faithful and at least 170 heads of state or government.

CNN's chief international correspondent Clarissa Ward was able to enter the Basilica and has this report.

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CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: We've just exited the Basilica where the body of Pope Francis is lying in state and will be for the next few days. There were hymns being sung softly by a choir, prayers being said, and this long line of largely silent people filing in quietly to pay their last respects to the leader of the Catholic Church who many really viewed as transformative.

And looking at the crowds who were waiting to go and pay those last respects, you could see that some of them were there to mark a moment in history. Some of them perhaps had already been here in Rome when Pope Francis died. Others clearly deeply moved by his life, by his legacy.

Quite a bit of emotion from some people trying to take the time to pray and have some reflection. We saw a lot of families, babies, children hoisted on shoulders. And, of course, a lot of people, as is common in the world today, with their iPhones trying to capture this moment.

And although Pope Francis was very emphatic about his desire to live a simple and humble life, when you're standing in that Basilica, in that extraordinary space, there is certainly an air of majesty.

Now we're outside, and you can see some people are exiting, but over here, long lines snaking around as people wait for their turn to go and pay their respects. When Pope John Paul II died, hundreds of thousands came, and we spoke to one person who has been covering the Pope for many years who said that the more people saw the images on television of visitors filing past to see the body of Pope John Paul II lying in state, the more visitors then began to flock to St. Peter's Square to be part of this historic moment.

And so we will see in the coming days as more and more people gather to remember Pope Francis.

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CHURCH: And thank you for spending part of your day with us. I'm Rosemary Church.

"Amanpour" is next. Then stay tuned for "Early Start" with Rahel Solomon starting at 5 a.m. in New York, 10 a.m. in London. Have a great day.

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