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Legendary Investor Speaks Out Against Trump's Trade War; New Tariffs on Auto Parts; GOP Wrestles with Federal Budget Cuts; Medicaid Balancing Act; Labor Party Victory; Sheinbaum Rejects Trump's Offer; Israeli Military Plans; Ukraine-Russia Ceasefire Talks; Shareholders Keeping DEI Alive; Staff Shortages Leads to Airport Delays in Newark; Last Day of Mourning for Pope. Aired 4-5a ET

Aired May 04, 2025 - 04:00   ET

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

[04:00:00]

KIM BRUNHUBER, CNN ANCHOR: Welcome to all of you watching us here in the United States, Canada, and all around the world. I'm Kim Brunhuber. This is CNN Newsroom.

A legendary investor is speaking out against Donald Trump's trade war. Hear what Warren Buffett is saying and why his remarks could be significant going forward.

Meanwhile, the president's meaning resistance to his budget plans from an unexpected source, why he's at odds with some House Republicans over paying for his agenda.

Plus, Ukraine and Russia both say they want to ceasefire, but that's where the common ground ends. We'll have the latest in the live reports.

ANNOUNCER: Live from Atlanta. This is CNN Newsroom with Kim Brunhuber.

BRUNHUBER: Donald Trump's trade policies are coming under sharp criticism from one of the biggest names in American business who had an announcement of his own to make. Legendary Investor Warren Buffett says he's stepping down from his role as the CEO of Berkshire Hathaway at the end of the year.

Buffett told the thousands gathered at the company's annual shareholder meeting that only his children knew his plans. It marks the end of an era in American capitalism. On his way out, he made sure to mention President Trump's tariffs. Here he is.

(BEGIN VIDEO CLIP)

WARREN BUFFETT, CEO, BERKSHIRE HATHAWAY: There is no question that trade can be an act of war and I think it's led to bad things, just the attitudes that's brought out in the United States. I mean, we should be looking to trade with the rest of the world and we should do what we do best, and they should do what they do best.

(END VIDEO CLIP) BRUNHUBER: A pending board approval, Buffett will be succeeded by Greg Abel. He's the vice chairman of non-insurance operations for Berkshire.

The global head of technology research for Wedbush put Buffett's trade comments into perspective. Here he is.

(BEGIN VIDEO CLIP)

DANIEL IVES, GLOBAL HEAD OF TECHNOLOGY RESEARCH, WEDBUSH: You're talking about someone that presidents, leaders of countries around the world for decades within government have always looked to what Buffett says. So, when he talks, everyone listens. That was a shot across the bow. I mean, that's about as negative as you're going to see Buffett in terms of what he's seeing in terms of the tariff trade war. And I think those words you're going to hear throughout the week because that -- everyone was waiting to hear what Buffett said about the trade war.

And even though obviously he, you know, retired at the end of the year, I mean, that -- those are words that'll be heard around the world and around the market.

(END VIDEOTAPE)

BRUNHUBER: Buffett's remarks come as a new round of tariffs hits the auto industry hard. Now, most important auto parts will come with a 25 percent import tax, and that levy doesn't protect American made cars. Now, this is a big deal, not a single one of 10 million cars to come out of U.S. plants last year was built without at least some imported parts. Experts estimate that the tariffs could ultimately add about $4,000 to the cost of any vehicle. CNN's Julia Vargas Jones is at the Port of Los Angeles with more.

(BEGIN VIDEOTAPE)

JULIA VARGAS JONES, CNN CORRESPONDENT: While these new tariffs may not affect those who are shopping for a new car right now, it might affect those who might need a new part or might need repairs on their cars. None of the 10 million cars made in the United States last year used 100 percent American parts. They all need at least some parts to come from overseas, and a lot of it will depend on where that part is coming from, as well as when it left its port of origin.

Just last week, we hit a new milestone here in the United States where all of the ships that had left China before the tariffs, before that deadline of April 9th have already arrived. So, any new merchandise that comes into these ports now will be subject to 145 percent tariff.

We spoke to the executive director of the Port of Los Angeles who said that has already caused a 35 percent drop in imports compared to last year. A lot of these business owners are saying, we're just going to wait and see what happens with these tariffs before moving forward, deciding how much merchandise we're actually going to bring in. Now, there is one way around this and we've spoke to someone who runs one of these bonded warehouses. This is a place that's perfectly legal in the United States where you can hold your goods for up to five years and are not subject to tariffs or taxes until you actually withdraw it, take a listen.

[04:05:00]

(BEGIN VIDEO CLIP)

JENNIFER HARTY, PRESIDENT, HOWARD HARTRY INC.: The other benefit is maybe you find a buyer, maybe you sell your product at a higher price and you find a buyer who's willing to pay that higher price. You can still house it here until you find that buyer. So, it's just giving everybody a pause to try and figure out their -- is it their new price structure? Is it we're -- I think right now we're waiting to see if the tariffs are going to come down. That's the biggie, the tariffs on the Chinese products.

(END VIDEO CLIP)

JONES: Now, this wait and see is also a gamble, albeit quite an optimistic one that talks with China will go well and that those tariffs will eventually go down. But the meantime, all of those goods that are in these warehouses being held are not going to hit the shelves, and that could cause a whole other host of problems.

Julia Vargas Jones, CNN, Los Angeles.

(END VIDEOTAPE)

BRUNHUBER: Republican lawmakers are trying to figure out how to cut more than $100 billion from the federal budget without cutting Medicaid. The White House released President Trump's budget proposal on Friday. It calls for cuts to the National Park Service, climate research, foreign disaster assistance, and much more.

Now, the overall budget blueprint for discretionary spending is $1.7 trillion, that's down more than 7 percent from the current budget. But to make those cuts, Republicans will need to fundamentally wrestle with the federal government's contribution to Medicaid and some Republicans fear that will amount to fewer people in their home states being covered.

I want to bring in Thomas Gift who joins us now from London. He's the director of the Center on U.S. Politics for University College London. Good to see you again. Thank you so much for being here with us.

So, Donald Trump's budget proposal, I mean, normally the president's budget proposal is just a wish list, but do you think that this carries more weight, first of all, because he has such a control over Republicans in Congress and second, because he also wields the power of DOGE?

THOMAS GIFT, DIRECTOR, CENTER ON U.S. POLITICS, UNIVERSITY COLLEGE LONDON: I completely agree with you, Kim. Thanks so much for having me. It's important to stress that Trump's budget bill, which calls for about a 23 percent reduction in non-defense spending is just a start of negotiations with Congress, and the proposed cuts target only discretionary spending in areas like healthcare, education, and foreign aid, not mandatory programs.

So, I think that the slim down bill does indicate that Trump is trying to emphasize a degree of fiscal restraint, something he really didn't prioritize his first time in office. But with a debt of, you know, some 36 trillion, America won't be able to break its spending addiction without slashing defense.

You know, I think that this is particularly salient, this battle between Capitol Hill and Trump because Trump has made so many overtures recently about trying to reign in appropriations that had already been expended by Congress. So, this is a real battle.

BRUNHUBER: Yes, absolutely. And speaking of battle in Congress, Donald Trump's so-called big, beautiful bill, it seems nowhere near ready. Republicans don't seem as if they're on the same page here. I know these big bills, they're always messy. Is the disarray we're seeing now unusual in any way?

GIFT: Well, I think the disarray is unusual from the perspective of what we used to see Trump and Republicans on Capitol Hill. Up until this point, we've really seen Republicans just be a rubber stamp on everything that Donald Trump wants to do. We've seen them vocalize support outside bills for virtually every single executive action Donald Trump has taken. But if we kind of take a step back and look at this from a broader historical perspective, it's really not that atypical.

Again, this budget that the president has put forward is really just a start of negotiations, and then there's always some assumption that those negotiations are going to unfold and they'll meet somewhere in the middle.

BRUNHUBER: Yes. Now, Medicaid seems to be the big stumbling block. Here's President Trump earlier this week.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: House Republicans are working to invest more money in Medicaid than we spent today. The only thing we're going to cut is the corruption and the crooks that take advantage of some of the illegal scheme.

(END VIDEO CLIP)

BRUNHUBER: So, what, if anything, can we read into that, they're going to spend more money, but also cut?

GIFT: Well, they're trying to cut Medicaid, which is a big deal in Congress. At least 12 House Republicans, many of whom are vulnerable in next year's midterms though have already expressed concerns about spending cuts to Medicaid. Leading that charge is Representative David Valadao of California, who directs this moderate coalition called the Republican Governance Group. Valadao is said to be running a group chat that's trying to stiffen opposition to slashing Medicaid to pay for tax cuts and largely increases in border investments and defense spending. Valadao actually knows firsthand the political cost of cutting healthcare. In 2018 he lost his seat after he tried to repeal the Affordable Care Act. He eventually gained that position back, but his experience, I think, is a warning shot for Republicans who think that there won't be significant blowback to Medicaid.

[04:10:00]

Absolutely. These cuts are going to be a big deal for lots of voters. And if Republicans tried to axe that, I think that they're going to face consequences in the 2026 midterms.

BRUNHUBER: Yes, absolutely. And we have to keep in mind, of course, the Republican majority is so thin. So, is Donald Trump going to have to kind of mediate these fights personally? And how effective will he be given that, you know, maybe he might be seen as having less clout these days considering his dismal poll numbers?

GIFT: Completely agree with that last point. I think Trump's low approval numbers right now, according to one poll, which you've probably seen, he's the least popular president at this stage in his term in eight decades. That's certainly not going to do him any favors on Capitol Hill. Republican lawmakers are still largely behind Trump, but I think one concern with passing this big, beautiful bill, so to speak, is that Trump is already expended his political capital on all of these executive orders.

Trump is really an anomaly among recent presidents in that he hasn't used his first hundred days to build momentum for a signature piece of legislation. Instead, he's really devoted his energy to these executive actions, from the consequential like tariffs to the nominal like renaming the Gulf of Mexico.

We look back with Obama and the Affordable Care Act with Biden and the infrastructure bill, it did take them a while to get their policies across the finish line, but unlike Trump, they were laser-like focused on these issues from the very get-go. And the fact that Donald Trump didn't do that during his real honeymoon, I think could cost him in the end with this bill.

BRUNHUBER: Yes, that's a really great point. We'll leave it on that one Thomas Gift, always great to get your analysis. Thanks so much.

GIFT: Thanks, Kim.

BRUNHUBER: Well, it was a disastrous night for conservatives as Australia's labor prime minister secured his second term. Now, this is the first re-election for an Australian prime minister in 20 years when it comes against a backdrop of global turmoil. CNN's Ben Hunte has the story.

(BEGIN VIDEOTAPE)

BEN HUNTE, CNN INTERNATIONAL ANCHOR: It was Australian Prime Minister Anthony Albanese's night, a victory for the Labor Party that almost wasn't. Just a few months ago it was his main rival conservative Liberal Party leader, Peter Dutton, who was leading the pulse. But the tide turned, driven in part by the disruptive trade policies of U.S. President Donald Trump, voters ultimately choosing stability over change.

ANTHONY ALBANESE, AUSTRALIAN PRIME MINISTER: In this time of global uncertainty, Australians have chosen optimism and determination. Australians have chosen to face global challenges the Australian way, looking after each other while building for the future.

HUNTE (voice-over): It was a clear message from voters.

ALBANESE: We are proud of who we are and all that we have built together in this country. We do not need to beg or borrow or copy from anywhere else.

HUNTE (voice-over): Albanese is the first Australian prime minister to win a second consecutive term in two decades, and the Labor Party not only increased its majority in Parliament, but also uprooted Dutton from his own parliamentary seat that he's held for more than 20 years.

Like the recent election in Canada, concerns over Trump's global tariffs and turmoil galvanized voters to reject the conservative opposition. With many Australians wary of Dutton's rhetoric and policies that seemed way too similar to Trump's.

PETER DUTTON, LIBERAL PARTY LEADER: We've been defined by our opponents in this election, which is not the true story of who we are, but we'll rebuild from here.

HUNTE (voice-over): For the next three years, Albanese has his work cut out for him. He has to tackle ongoing domestic problems with housing shortages and the high cost of living, issues he was widely criticized for not fixing in his first term. And he has to continue to navigate relations with the U.S. in unpredictable times.

But the high stakes of this election didn't dampen the spirits of some voters. Many Australians participated in some colorful voting day traditions from feasting on barbecues, including democracy sausages sold by volunteers at polling stations. With some wearing tight fitting swim trunks, known as budgie smugglers to cast their votes. With so much uncertainty ahead, there were at least some things Australians can count on.

Ben Hunte, CNN.

(END VIDEOTAPE)

BRUNHUBER: Well, Australia isn't the only country where conservative goals have been thwarted by the Trump effect, as Ben just mentioned. New Canadian Prime Minister Mark Carney carried his Liberal Party to a solid victory Last week after the U.S. president's rhetoric upended the race and tank conservative support. CNN's Chief Data Analyst Harry Enten looks at the numbers.

(BEGIN VIDEOTAPE) HARRY ENTEN, CNN CHIEF DATA ANALYST: The chance that Australia's Labor Party wins a majority in the 2025 election. You go back to February before the tariff war. Look at this. It was just a 3 percent chance. Just a 3 percent chance.

[04:15:00]

And as we know, well now it's a hundred percent chance that they win the majority, and not just that, they expanded the majority. Back in February, indeed, it was most likely going to be a hung parliament, where the conservative coalition was likely to get the most number of seats in that parliament. But at the end of the day, in the lower house, Labor crushes with an expanded majority. Anthony Albanese, prime minister elected to another term.

Australians who say Trump's election was bad for Australia. Look at this. When Trump was elected back in November of 2024, it was 40 percent. Look at where it was right at the end of the campaign, 68 percent, two-thirds of Australians said that Trump's election in the United States was bad for Australia. Anthony Albanese and the Labor Party, of course, the leftist part of that country, they hammered, hammered, hammered the conservative coalition over Donald Trump.

And not only at the end of the day did the Labor Party win and not only did they get a majority, they expanded their majority, but also the head of the conservative coalition actually lost his seat. That is how big this labor movement was, and it was supercharged by Donald John Trump. Australia no bueno on Donald Trump as these numbers indicate and the election results from Australia indicate.

Say the U.S. will have a positive impact on world affairs. This is April versus pre-2024 election. Look at the number of countries in which that percentage has declined, the percentage who say the U.S. will have a positive impact on world affairs. It has declined. And get this 26 out of 29 countries nearly unanimous. It doesn't basically matter where you go. Yes, there's maybe a country here or there that liked the United States better, but the vast majority of countries that are polled hold a lesser view of the United States now versus before Donald Trump was elected.

The bottom line is, as I said earlier, this has caused liberal leftist parties worldwide a massive upswing in their popularity and has caused a downgrading in the minds of many different folks throughout the globe, perhaps not in the United States, however, but many folks throughout the globe to see the United States as a lesser than they did before Trump was elected.

The bottom line is Donald Trump hasn't just shaped the politics in the United States, he has shaped it worldwide, oftentimes to the detriment of conservative parties and to the benefit of leftist parties worldwide.

(END VIDEOTAPE)

BRUNHUBER: Mexico's president says she declined President Trump's offer to send U.S. troops to fight drug cartels. Claudia Sheinbaum told the crowd at a public university opening Saturday that the U.S. president made the offer. She said, sovereignty concerns prompted her to tell Trump, no thanks. Sheinbaum added that she told him the two countries could collaborate and share information, but she would never accept U.S. troops on Mexican soil.

All right. Still to come, months after he was berated in the White House by Donald Trump and J. D. Vance, the Ukrainian president Zelenskyy says he's just had the best conversation with Donald Trump yet. We'll have more on that ahead.

And Israel is planning new operations in Gaza as talks with Hamas about a ceasefire and hostage return deal stall. We'll have that story and much more after the break. Please stay with us.

(COMMERCIAL BREAK)

[04:20:00]

BRUNHUBER: Flights have resumed at Israel's Ben-Gurion Airport after a missile landed nearby. They were temporarily suspended along with train service to the airport. The Israeli military says the missile came from Yemen, and that several attempts to intercept it failed. No word yet on injuries, but police ask the public to stay away from the area. Houthi Rebels have repeatedly launched missiles at Israel, but this appears to be the first time when it's hit near the airport. It's the third consecutive day of missile launches from Yemen towards Israel.

Meanwhile, Israel says it's planning to mobilize thousands of reservists in the coming days, and what appears to be an expansion of its offensive in Gaza. The plan is likely to be approved by Israel's security cabinet just a few hours from now. According to Israel's public broadcaster, PAN 11, the plan calls for evacuating Palestinian civilians from Northern and Central Gaza ahead of expanded operations there.

Families of hostages slammed the move and Prime Minister Benjamin Netanyahu. They released a statement arguing that any escalation of the conflict will put hostages at risk.

(BEGIN VIDEO CLIP)

YOTAM COHEN, BROTHER OF ISRAELI HOSTAGE NIMROD COHEN (through translator): Netanyahu's peace war is a war of hostage slaughter that must be opposed. This war serves only Netanyahu and his partners who are disconnected from the people. I call upon the military chief of staff. You must not order a military operation that will inevitably lead to the killing of hostages. Such an order is manifestly illegal, bearing a black flag. We demand from you full commitment to the hostages.

(END VIDEO CLIP)

BRUNHUBER: Anti-Netanyahu demonstrators flooded the streets of Tel Aviv again on Saturday, calling for a ceasefire and hostage release deal. Negotiations have been stalled for weeks. Sources tell CNN that U.S. and Israeli officials are working on a plan to get aid into Gaza that bypasses Hamas. A total Israeli blockade of the enclave just passed the two-month mark and officials warn that famine is looming.

Kremlin officials say they're waiting for Ukrainian President Volodymyr Zelenskyy's definitive response to its ceasefire proposal. Russia's offering to lay down its weapons for 72 hours starting Thursday. How it coincides with Moscow's annual World War II Victory Day celebration, Zelenskyy has denounced that plan as, quote, "a manipulation." He says Russia is simply trying to create a pleasant atmosphere for its parade and to show off for foreign dignitaries who will be visiting Moscow. But Zelenskyy says he's ready to call a truce on certain terms. Here he is.

[04:25:00]

(BEGIN VIDEO CLIP)'

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): At the same time, we are ready as soon as possible, even from today, to move toward a ceasefire if Russia is ready to mirror those steps for complete silence, for prolonged silence of at least 30 days, this is a fair period in which the next steps can be prepared. Russia must stop the war and cease the assault, cease the shelling.

(END VIDEO CLIP)

BRUNHUBER: Zelenskyy's demands come days after an extensive Russian assault on the City of Kharkiv. Melissa Bell has the latest.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: President Zelenskyy has been speaking to the massive drone strikes that hit Kharkiv on Friday night, injuring dozens, including an 11-year-old, setting many residential buildings on fire.

He spoke by telegram to the fact that there had been no military targets and that the point of these strikes was specifically to target civilians as they were putting their children to bed. An important reminder of the urgent need to find a ceasefire deal, but also of the need for more pressure to be brought to bear on Russia.

President Zelenskyy has also been speaking this weekend of his view of progress that's being made on the diplomatic front. He spoke to reporters about his meeting with Donald Trump in the Vatican last week, saying that it had been their most useful so far, their best conversation so far. He said that progress had been made on a number of different issues.

He spoke of his sense that the American administration was growing increasingly frustrated with Moscow and its intransigence when it came to implementing or agreeing to that 30-day ceasefire that both Washington and Kyiv are calling for. That he had sensed that both Steve Witkoff and President Trump himself were growing increasingly impatient. And he said that he believes that the mineral deal that's been struck this week with Washington will allow Ukraine now to look at. Purchasing those much-needed air defense systems from Washington, air defense systems that have proven so crucial so far but whose future in terms of aid seemed to hang in the balance ever since President Trump took office, with President Zelenskyy looking in a far surer position after that mineral deal than he was before.

Melissa Bell, CNN, Paris.

(END VIDEOTAPE)

BRUNHUBER: Earlier, former U.S. Ambassador to NATO, Kurt Volker spoke to CNN about what the U.S. can do to help Ukraine and push for peace. Here he is.

(BEGIN VIDEO CLIP)

KURT VOLKER, FORMER U.S. AMBASSADOR TO NATO, FORMER U.S. SPECIAL REPRESENTATIVE FOR UKRAINE NEGOTIATIONS, DISTINGUISHED FELLOW, CENTER FOR EUROPEAN POLICY ANALYSIS AND SENIOR ADVISER, ATLANTIC COUNCIL: Overall, I think Trump has put a lot of pressure on Ukraine and that has helped to get to a point where the U.S. and Ukraine really are in alignment right now. But as far as Putin's concerned, there have only been carrots, only enticements, only inducements, never any real pressure on Putin. And I think because of that, Putin has actually escalated his demands, rejecting Trump's requests for a ceasefire. So, I think the next stage now has got to be tougher pressure on Putin.

And there are two things that I think need to be done. I think we need to pursue the secondary sanctions on those who are helping Russia evade the primary sanctions on oil, gas, and financial industry. Those should be applied. And secondly, we should be able to give Ukraine loans, to borrow as much money as they need to buy American weapons and ammunition. So, there will be a steady supply of military support for Ukraine for as long as the eye can see.

And Putin needs to see both of these things. His own economic situation deteriorating and Ukraine's military situation stable to try to get to a point where he is actually ready to end the war.

(END VIDEO CLIP)

BRUNHUBER: DEI has found itself in the political crosshairs in recent months, but despite declining popularity amongst some politicians, a number of investors are doing what they can to keep the policies alive. I'll speak to one expert about what corporations are trying to do to keep DEI in place and why.

And a shortage of air traffic controllers causing delays at a major airport in the U.S. We'll have the details when we come back. Stay with us.

(COMMERCIAL BREAK)

[04:30:00] BRUNHUBER: Welcome back to all of you watching us here in the United States, Canada, and all around the world. I'm Kim Brunhuber. This is CNN Newsroom.

Diversity, equity, and inclusion, or DEI, as it's commonly known, has become a political buzzword in recent years. Anti-DEI sentiment has grown among consumers with companies like Target, pulling back on initiatives in the face of mounting right-wing pressure. Anti-DEI, shareholder proposals have also grown since 2024, reflecting a broader movement on the political right to crack down on DEI. But these anti- diversity proposals have received on average less than 2 percent of shareholder support. Instead, investors at big companies like Costco, Apple, and Levi's have voted against proposals targeting programs aimed at advancing different races, genders, classes, and other marginalized groups.

So, to talk about this a little bit more, I'm joined now by Jon Solorzano, partner at Financial Law Firm, Vinson & Elkins. And he comes to us from Los Angeles. Thanks so much for being here with us. So, these companies that are voting down these anti-DEI proposals. they're getting kudos for being seen to stand up for DEI, you know, progressives are plotting them, but do they deserve this praise?

JON SOLORZANO, PARTNER, VINSON & ELKINS: Well, I think it's important to put this into context. Shareholders have the right to bring proposals against any company, assuming that they meet the basic thresholds of ownership. And this has been a trend that's been happening for a number of years where shareholders are bringing proposals against companies and companies often oppose these proposals. And shareholders typically will support what the company says.

The anti-ESG and anti-DEI proponent class has been really stepping up their efforts in the last couple years. And some of this predates the current Trump administration and some of the anti-DEI perspectives that have been, you know, clearly articulated to the world.

So, in some ways, what's happening right now is really just a continuation of what we were seeing prior to the administration where shareholders viewed some of these proposals as being overly prescriptive. They weren't really in further into a long-term shareholder value. And so, you were seeing these shareholders supporting what management was dictating.

[04:35:00]

I think it's important to also understand that while the large institutional investors who make up often 30 percent plus of the shareholder base at every company that's public, they themselves are under a lot of pressure, anti-ESG, anti-DEI. And so, they're really silencing their own efforts because they're seen as too political, too woke.

But that being said, they haven't really come all the way around to saying, well, we actually think that DEI or ESG is a bad idea. We just are going to be a little bit less vocal ourselves about it. So, to the extent that a company is articulating that this is a bad thing to have a shareholder micromanage, what we're doing as a company, the large institutional investors that take up a large percentage of a company's voter base are still saying no. And this is a continuation of a long- term trend that we've been seeing.

BRUNHUBER: Yes. And just for viewers who might not be familiar with the acronym ESG, is environmental, social, and governance, right? So, investors are saying they don't want ideological shareholders to kind of drive business. Is any of this, in any way, an endorsement from investors who actually believe DEI programs are good for business? Because research has shown it is good for the bottom line.

SOLORZANO: Yes. I think that a lot of investors, while now they're maybe a little bit more careful about being overt about saying we think the DEI is necessarily a good thing, they're going to -- I think at their core, they fundamentally believe that it is good for business over the long-term, having good human capital management programs, having high employee morale, having a view towards a broader consumer base. And that was some of the things that were articulated in some of these opposition statements, which is basically what you put in your proxy statement if you're opposing a show proposal.

So, for instance, Costco basically was articulating that having a diverse employee base leads to better outcomes because they can, you know, select better products for their consumers that are represent a wide swath of population, or consumers enjoy seeing people who look like them when they're shopping in the stores. Those were articulated specifically in the opposition statement and those types of things are being articulated to the shareholders who then realize this is actually perhaps good for business. And so, why would we support something that says the risks outweigh the benefits.

BRUNHUBER: Right.

SOLORZANO: If a company is saying the benefits are better than the risks, then let's defer to them.

BRUNHUBER: Right. OK. So, then on the flip side, I mentioned in the introduction that there's been a huge increase in these anti-DEI proposals. They only get about 2 percent support. So, why are these anti-DEI crusaders doing it? Are they doing it just for the attention or does it give them some leverage with the companies to kind of force some changes?

SOLORZANO: It's a good question and it's one that I think every sort of activists or sort of ideologically driven shareholder has perhaps a different view on it. You can almost be assured that you're probably not going to win a shareholder proposal, whether it's pro-DEI or anti- DEI. But one thing that shareholder proposals are, is a very loud, very cheap megaphone.

So, it's one way for a proponent to basically say, we are sticking it to the big corporates and we can go raise fundraising or we can get media attention, and you really only have to have a very small ownership stake in order to bring these proposals forward. The large institutions that have big stakes in companies, they have a lot of skin in the game, if you will, they own, you know, 15, 10, 20 percent of a company and they don't necessarily view these proposals as aligned with their own economic interests and this is more of a grandstanding thing for ideologically focused people.

But I can say that even if they know that they're going to lose these proposals, this is still potentially worth the effort for them to raise awareness, raise their profile, raise fundraising. And this is a really good megaphone for them.

BRUNHUBER: Yes, it's interesting to see, I mean, as you mentioned, so many country -- so many companies have been walking away from this DEI language, interesting to see whether they're also walking away from the principles in practice as well. Time will tell. John Solorzano, thank you so much. Really appreciate it.

SOLORZANO: Thank you.

BRUNHUBER: Well, people flying through Newark Liberty Airport in New Jersey this weekend are suffering a sixth day of delays. The FAA imposed ground delays, some lasting for more than three hours because of air traffic control staffing shortages. Website FlightAware is reporting at least 55 flights canceled and 17 delayed so far today. CNN's Leigh Waldman has more on the problems and filed this report on Saturday.

(BEGIN VIDEOTAPE)

LEIGH WALDMAN, CNN CORRESPONDENT: There's waves of travelers coming throughout the Newark Airport today. We checked the flight board downstairs, and it's littered with flights that are canceled or delayed. Several hundred flights have been delayed today with dozens of others that have been canceled.

[04:40:00]

Starting this weekend, United Airlines is actually canceling 35 round trip flights from this airport specifically, and it all stems back to staffing issues with air traffic controllers. We spoke to some passengers today about their delays and how they're feeling altogether.

UNIDENTIFIED FEMALE: Yesterday from West Palm Beach, flight was delayed for three and a half hours for no reason the last minute. Once you get to the airport, there was a last-minute information. So, I would appreciate if the airlines or if anyone else will give us ahead of time. So, then we don't have to leave home and be stranded at the airport for three, four hours.

WALDMAN: Now, as a whole, there are 3,000 air traffic controllers short across the entire nation. We heard from the union that represents these air traffic controllers. They said these are some of the worst staffing shortages they've seen in nearly 30 years. It could take eight to 10 years to make up for these staffing shortages.

Earlier this week, we also heard from the transportation secretary who said they're working on incentivizing programs or incentive programs to try and get more people into this field, including a $5,000 bonus for people who enroll in the academy. Also bonuses for people who stay until they're reaching retirement ages, but we're hearing from those passengers and they are feeling the pressures and pains of these staffing shortages that come with these delays. Back to you.

(END VIDEOTAPE)

BRUNHUBER: In Bolivia, five people have been rescued after their plane crashed into alligator infested waters in the Amazon. Rescue footage shows the pilot, three women and a child stranded on the submerged wreckage of their plane surrounded by alligator infested waters. The pilot says the plane lost power mid-flight, forcing an emergency landing. Two days later, they responded by fishermen triggering rescue efforts. All five were airlifted to hospital where the pilot spoke about the ordeal.

(BEGIN VIDEO CLIP)

PABLO ANDRES VELARDE, PILOT OF CRASHED PLANE (through translator): We were practically with the water under our knees, and it was deep. We couldn't swim and because of the wild animals around, we couldn't move to harder ground. I thank God more than anything for a second chance that we are all here alive.

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BRUNHUBER: Doctors say all five survivors are stable officials are investigating how the group remained undiscovered for so long despite multiple search flights sweeping the crash area.

Today, the Vatican is hosting the final mass mourn Pope Francis. Coming up, live report from Rome with the latest on the ceremony at St. Peter's Basilica. Stay with us.

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BRUNHUBER: Soon the Vatican is set to hold the ninth and final mass mourn the death of Pope Francis. The ceremony at St. Peter's Basilica completes a period of mourning that traditionally follows a pope's funeral. It's among the last remaining preparations before next week's papal conclave, beginning May 7th.

And tracking this for us is CNN's Barbie Nadeau, who joins us live from Rome with the latest. So, Barbie, take us through what we're expecting today.

BARBIE LATZA NADEAU, CNN REPORTER: Yes, you know, it's a very solemn day here, this final mass of morning, and the basilica behind me will close about 1:00 p.m. local time. So, they can prepare inside for that final mass.

But we've seen all morning long, these pilgrims just, you know, singing and praying and walk -- they want to walk through the holy door, into the basilica. Of course, this is a jubilee year. So, it's just a really momentous moment here. And you've got the cardinals, all of them, who are going to be voting and not, which many of them are conducting mass in their titular churches here in Rome. So, you've got just kind of spread out into the City of Rome this very momentous occasion, and we're really feeling it here in the Piazza. Kim.

BRUNHUBER: Yes. And then, Barbie, look ahead for us to the conclave.

NADEAU: Yes. You know, I mean, this really is the countdown to the conclave. We were here the other day when they were putting up the Sistine Chapel chimney, and you know, that's where the white smoke or black smoke will come out first in the white smoke eventually.

And, you know, what we know is on the 6th of May, the cardinals will go into St. Peter's, into the Vatican City, and they'll stay at Santa Marta. That's where Pope Francis lived, and that's where they will be basically living throughout the conclave. Then on the morning of the 7th, they'll have a mass and be sworn in secrecy, give up their phones, give up every contact with the outside world and go into the Sistine Chapel for their first vote.

And if it -- they don't reach a conclusion, obviously, that's the black smoke. And then, the next day, they'll do the same thing of two votes in the morning, two votes in the afternoon. And we'll be expecting two episodes of smoke, let's say.

But I remember from conclaves pass, this is the third one, I've been here for, that when the smoke is expected, people from all over the city, not just the tourists, come to the square to look at the chimney and try to figure out is that white? Is it black? What is it? And then when it's white smoke, all church bells of Rome ring, which just draws the entire city's population to the square to find out who the next pope will be.

So, it really is an exciting time. You know, everybody who's watched the movie "Conclave" may think it resembles that. But here in Rome, it really is just a moment that so many people who live in this city just revel in and they'll be here in the square, many of them after those church bells ring. And it's an exciting time. Kim.

BRUNHUBER: You say an exciting time, but you also spoke of the solemnity of this occasion, especially as we're still talking about the mourning of Pope Francis. And there's been a lot of criticism here and around the world after President Trump posted an A.I. generated image of himself dressed as a pope. We're showing it there. Have many people out there seeing this picture and how are folks reacting, especially at this sensitive time of mourning?

NADEAU: Yes. You know, I mean, you know, this is something that's in all the papers this morning and people are talking about it, and it's especially uncomfortable for the American cardinals, those who supported Donald Trump over President Biden because of his stance on abortion. So, it puts them in a very kind of difficult situation.

But you know, whoever it is that will replace Pope Francis, which will not be President Trump, they're hoping for someone that is like him. Now, we heard from one of the people here in St. Peter's Square behind me just about what they're hoping for in the next pope. So, let's listen to what he had to say.

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CLARA CHATELLIER, FRENCH TOURIST (through translator): I think he was a very committed pope who knew how to make people talk about him and who proposed many beautiful things. So, I hope the next will be as committed to the causes that are important today.

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NADEAU: And you know, it's anyone's guess if it'll be a pope like Pope Francis or it'll be someone who's a little bit more conservative along the lines of Donald Trump. Kim.

BRUNHUBER: All right. we'll be watching. Barbie Latza Nadeau, thank you so much. Appreciate it. And we'll be right back. Stay with us

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[04:50:00]

BRUNHUBER: A growing number of tourists are paying to experience a day in the life of a Japanese high schooler. The immersive experience works in tandem with a government plan to encourage more tourists outside of high demand destinations like Tokyo and Kyoto could also serve as a solution for Japan's increase in school closures. CNN's Hanako Montgomery reports.

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HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): Class is in session.

UNIDENTIFIED FEMALE: Good morning, everybody.

MONTGOMERY (voice-over): But these students aren't here to study for one day only. They're experiencing what it's like to attend school in Japan. Uniforms on. Chalk in hand.

UNIDENTIFIED FEMALE: My name is Hino Miyabi (ph), and I'll be your teacher for today.

MONTGOMERY (voice-over): There are no failing grades at Kimino High School, only certificates of completion and a rare immersion into Japanese culture.

PARINA KAEWKRAJANG, TOURIST: The teacher is like really like in character and like just being able to do it with my friends like makes the whole experience like super fun.

MONTGOMERY (voice-over): Originally, a middle school, this building in the mountains of Chiba, southeast of Tokyo, closed in 2020 due to falling enrollment, but it's not just here. As Japan's average age goes up, the number of children goes down. Nearly 6,500 schools have shut down nationwide over the past two decades, according to government data. [04:55:00]

Meanwhile, as tourism overcrowd cities like Tokyo and Kyoto, an experience like this supports a government plan to shift more foreign tourists from overcrowded cities to rural areas, giving new life to these once abandoned school grounds.

The program doesn't stop at lunchtime. Participants take turns serving traditional Japanese meals, just like students do. On the menu, curry and rice.

UNIDENTIFIED FEMALE: So, as you can see, she holds it like a pencil, but the brush is upright.

MONTGOMERY (voice-over): Miyuki Nagano (ph) is an actor at the experience, demonstrating how to write Japanese calligraphy, known Shodo. In gym class, they're taught tamayde (ph), a Japanese beanbag tossing sport.

By the end of the day, tourists receive their certificates of completion, creating memories some say they've only ever seen secondhand.

JASON WU, TOURIST: Based on the things I've seen in like anime, in shows, things I've read, it felt pretty authentic. The -- it got compressed into one day, which is kind of what you have to do. But I would say, yes, I feel like I was in the shoes of a high school student again in a different country.

MONTGOMERY (voice-over): The day costs about $250, the price for a glimpse into a side of Japan most tourists never see.

Hanako Montgomery, CNN, Tokyo.

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BRUNHUBER: Well, summer maybe more than a month away, but India's going through a spring heat wave and one elephant is staying cool. The pachyderm splashed around in a pool at an Indian temple in Southern Rameswaram. India's government meteorologists say most of the country will experience intense heat wave this summer. India normally has a very hot summer and a mostly temperate winter. Looks like fun.

That wraps this hour of CNN Newsroom. I'm Kimber Brunhuber. I'll be back with more news in just a moment.

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