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U.S. Stock Markets Hit Highs On Friday Despite Trump's Termination Of Trade Talks With Canada; Trump Ends Canada Trade Talks Over Digital Services Tax; Trump Celebrates Supreme Court Win As A "Big One"; Supreme Court Leaves Path For End To Birthright Citizenship; Trump Predicts Gaza Ceasefire "Within The Next Week"; Bessent Warns Of More Tariffs While Teasing Extension; U.S. And China Formalize Deal On Rare Earth Minerals; American Arrested During Raid Wants Answers From ICE. Aired 1-2a ET

Aired June 28, 2025 - 01:00   ET

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

[01:00:00]

(COMMERCIAL BREAK)

ERICA HILL, CNN ANCHOR: Top of the hour here. Hello, and welcome to "CNN Newsroom." I am Erica Hill. Thanks so much for joining me this hour.

President Trump dropping the hammer on Canada again, ending all trade talks over a digital service tax. The Supreme Court giving a green light for the President for to pursue even more of his agenda after a key ruling on lower court injunctions. And the President predicting a ceasefire could come as soon as next week for Gaza in the wake of that truce between Israel and Iran.

U.S. stock market's hitting some record highs on Friday to wrap up a pretty big economic week for the United States, that's despite a move by President Trump that would reignite potentially the trade war with Canada.

The S&P 500 and the NASDAQ Composite both setting new records on Friday. The Dow closed within 3 percent of its all-time high. All this despite what was a somewhat wobbly afternoon.

Markets did briefly go south when the President abruptly announced on Friday he is ending months long trade talks with Canada. The reason? A digital services tax. So that's applied to companies like Google, Apple, and Meta. It's set to go into effect on Monday.

Mr. Trump has taken issue with similar taxes and negotiations with several countries. Canada's Prime Minister, for his part, said his government is considering its response to the move.

CNN Correspondent Paula Newton has more now on these developments from the Canadian capital.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: To many in Canada it had seemed as if the trade war with the United States would simmer down. Prime Minister Mark Carney, Donald Trump getting along so well during the G7 meeting earlier this month and a kind of flexible deadline for trade negotiations to wrap up later in July had been set.

But then Donald Trump said it was the digital services tax that was going to be imposed by Canada. Now to be clear, this tax has been in place in Canada for about a year. The first payment from those digital companies was supposed to be paid. It's supposed to be paid on June 30th. Donald Trump said no, it must be off the table in order for trade negotiations of any kind to go forward. Listen.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They were foolish to do it. And so I said, we're going to stop all negotiations with Canada right now until they, straighten out their act.

We have all the cards. You know, we do a lot of business with Canada, but relatively little. They do most of their businesses with us. And when you have that circumstance, you treat people better.

NEWTON: The President isn't wrong about that. In fact, it will have a chilling effect over Canada's economy already teetering close to recession. I want you to listen now, though, to Prime Minister Mark Carney.

MARK CARNEY, CANADIAN PRIME MINISTER: Oh, I did speak to the President.

REPORTER: What do you -- any reaction to the meeting?

CARNEY: No. Look. We'll, we'll continue to conduct these complex negotiations in the best interest of Canadians. This negotiation.

NEWTON: Now Canadian officials say they will do their negotiating behind closed doors, But this certainly was a salvo that means that the clock continues to tick down on a trade deal with Canada. And the longer this uncertainty lasts, the more that the President is correct that this will continue to hurt Canada much more than it will hurt the United States. And the President likely believes that will get the United States a better trade deal in the end.

Paula Newton, CNN, Ottawa.

(END VIDEOTAPE)

HILL: For more on this, and we're joined by Christopher Clarke, an economics professor at Washington State University, joining us from Pullman, Washington. Nice to have you here.

So, you know, as Paula just laid out this could cause some considerable pain to Canada. Donald Trump saying earlier today, we have all the cards, every single one. Is he right?

CHRISTOPHER CLARKE, ECONOMICS PROFESSOR, WASHINGTON STATE UNIVERSITY: Every single one is clearly an exaggeration. The Canada is one of our largest trading partners -- Canada, Mexico, and China. There would be significant effects for the American economy. Sure. There's asymmetry, but not anywhere near costless for the United States economy.

HILL: There's also -- in fact this is all sort of brewing around as Canada -- as Paula laid out, is brewing around this digital services tax, right, which has been in effect, but these retroactive payments are coming due on Monday, and that is the big issue. It's not dissimilar though to taxes from European countries that the President has also railed against.

What's interesting, though, is the end -- "end" in quotes here, at least for the moment, to any negotiating in terms of a trade deal with Canada. That's not what we're seeing with some of these other countries. Does that surprise you?

CLARKE: The President is not known for his consistency on these issues. He continually threatens to do huge tariffs and then a few days later reverses them. It remains to be seen whether or not these threats to stop negotiations are going to last very long.

[01:05:00]

The stock market, as we just learned, closed at a record high level, so I don't think the market's really betting on a lot of disruption right now.

HILL: How much do you think that is the fact that a lot of this uncertainty at this point is now baked in for the markets?

CLARKE: Oh, I think that's a really good point. The uncertainty has been here for -- over five months. Some things have settled down. You know, the big large tariffs that were announced back in Liberation Day on April 2nd, all have been pulled back. And the initial large tariffs on Canada and Mexico that were announced back in February and March have yet to be put back on the table. So I think the uncertainty that we have is largely baked in, and I think that the large threats are not being believed by the market.

HILL: There's also this -- you know, we're sort of continuing to see the can be kicked down the road a little bit as we heard today. Some of these deals now, we're told, maybe closer to September 1, Labor Day, of course.

The fact that the gold coast [ph] keep getting moved as well, I mean, how much incentive is there for a lot of these countries when they do keep seeing that the goalpost moves, that perhaps they do have a little more time?

CLARKE: Oh, I think that's a very good point. There has not been a deadline that has hit and stuck for anything major so far. Take it from tariffs or even the TikTok ban, which has been signed by law by Congress, and yet it's continually kicked down the road as we go along.

HILL: Put into perspective for us, if you could, what would happen, right, if these talks did not restart? I mean, Paula talked a little bit about the pain that Canada would feel. How painful would it be as well on this side of the border? CLARKE: Well, I mean, it depends on the specifics. The current situation between the U.S. and Canada is we've imposed tariffs on aluminum and steel, but have not done anything outside of the preexisting trade deal that Trump signed in his first term.

If trade negotiations stop and that situation changes and doesn't be renewed, we're looking at serious economic pain for large sections of the United States, particularly areas in the automobile industry or in the Midwest, or Detroit area that do a lot of trade across the border.

Certainly, right here in my home State of Washington where we engage with trade with Vancouver just north of us, areas will feel some significant pain. So to sum up, significant recession in Canada, but economic suffering and pain here in the U.S. as well.

HILL: Yeah. Christopher Clarke, great to have you with us. Thank you.

CLARKE: Thank you for having me tonight.

HILL: Well, meantime, President Trump is celebrating what he called a giant win from the Supreme Court on Friday. Majority of the justices ruling to limit the power of lower courts in the U.S. to block his policies on a nationwide basis.

Julia Benbrook is in Washington with those details.

(BEGIN VIDEOTAPE)

JULIA BENBROOK, CNN NEWSOURCE CORRESPONDENT: In a six to three ruling, the conservative majority backed President Donald Trump's efforts to curtail lower federal courts from issuing nationwide injunctions that have served as a roadblock to his agenda for months, but left the fate of his divisive executive order on birthright citizenship unclear.

The high court's decision was a significant win for Trump, and it could have lasting implications, not only for the remainder of his term, but also for future Presidents of both parties.

In the majority opinion, Justice Amy Coney Barrett wrote, quote, "When a court concludes the executive branch has acted unlawfully, the answer is not for the court to exceed its power too." In a dissent, Justice Sonia Sotomayor warned that, "Under the ruling no right is safe in the new legal regime the court creates." Writing, "today, the threat is to birthright citizenship. Tomorrow, a different administration may try to seize firearms from law abiding citizens or prevent people of certain faiths from gathering to worship."

BENBROOK (voice-over): There were several other major rulings on Friday. The court also ruled that religious parents can opt their children out of the reading of LGBTQ books in school and upheld a Texas law that requires age verification for pornographic websites.

And in the latest legal challenge to Obamacare to reach the high court, the court upheld a task force that recommends preventive health care services that insurers must cover at no cost. BENBROOK (on camera): Every year, the Supreme Court tries to finish its work by July, but it is unusual to see so many highly watched cases on the final decision day. In Washington, I'm Julia Benbrook.

(END VIDEOTAPE)

HILL: I'm joined now by Jessica Levinson. She's a professor of law at Loyola Law School and also the host of the "Passing Judgment" podcast. It's good to have you with us.

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So President Trump has said this is, in his words, a tremendous win, this ruling. Could you put that in context? How big of a win is this, not only for President Trump, but for the executive branch moving forward?

JESSICA LEVINSON, PODCAST HOST, "PASSING JUDGEMENT": I love the way you phrase that question, because I think that's exactly right. This is a win for anybody who inhabits the Oval Office.

We know that it's not just President Trump who doesn't like it when federal judges impose nationwide injunctions when people challenge their executive orders, but it's all essentially all Presidents we can think back to, President Biden and President Obama.

Now we should note that President Trump is issuing more executive orders by orders of magnitude than his predecessors, and they're being challenged more often as well. But this is a win for the Trump administration. I think it's a win for those who embrace a broad view of executive power.

HILL: So -- and then just lay off first what comes next here. So there's a pause for 30 days, essentially. This issue will go back to the lower courts. There is an expectation too that there could be some additional legal challenges.

LEVINSON: Well, that's right. So now both sides essentially start fighting and trying to apply the Supreme Court's order. So the Trump administration is going to go back to these lower courts. There were three different judges who impose nationwide injunctions when people challenge the birthright citizenship order.

And the Trump administration is going to say, look at that Supreme Court decision. This nationwide injunction can't stand. It needs to be trimmed back to just the people who sued. We already know that in the hours since the Supreme Court made its decision, that those challenging the executive orders, those on the other side have tried to get -- some of them have tried to get class certification.

And so class certification is one way for challengers to try and get broader relief, which is all a way of saying, yes, now we go back to the lower courts, and now we fight about how to apply the supreme court's decision in this particular case and others.

HILL: And just a reminder, of course, this was not a ruling on birthright citizenship. One of the concerns, though, is that moving forward, should there be a ruling, if we're looking at things that are going to end up being piecemeal, you could have states that no longer recognize birthright citizenship next door to states that do, which would enter in -- I mean, usher in a whole host of issues.

So you live in one state, you have your baby in another state. That happens all the time in the U.S. Or you're born in one state, and then you move to a state where all of a sudden your citizenship isn't recognized. Is the country or the courts ready for that?

LEVINSON: So I don't know that we're going to get there. That obviously would be a very difficult patchwork, both legally and in terms of practically on the ground what it would mean for people.

So what the court said in its majority opinion is that there might be situations where states can get nationwide injunctions. Those would be rare situations, but it would be situations where the state can't otherwise get adequate relief.

In my view, this is a situation where the states can, with a straight face, say, we can't get adequate relief. Maybe if it's -- maybe it's for our residents, maybe it's for people who travel into the state without a nationwide injunction. So I'm not sure that we are going to see this particular executive order take effect anywhere in the country.

Obviously, we'll know more in thirty days. But I think the impact of this decision, frankly, could be felt with respect to other executive orders and other challenges to those orders even more deeply.

HILL: Jessica Levinson, really appreciate your insight. Thank you.

LEVINSON: Thank you.

HILL: California's Democratic governor is now suing Fox News. Gavin Newsom accusing Fox of defamation over its coverage of a phone call between him and Donald Trump during the President's immigration rates.

(BEGIN VIDEO CLIP)

GOV. GAVIN NEWSOM (D-CA): I just filed a lawsuit against Fox News for lies, for deceit, for misrepresentation. Enough of their lies. We'll see them in court.

(END VIDEO CLIP)

HILL: Newsom alleges Fox aired deceptively edited videos and made false statements, claiming that Newsom had lied about the timing of the phone call from the White House. He is seeking $787 million in damages. Fox has rejected the suit and -- the claim, sorry, and calls the suit a transparent publicity stunt.

Still ahead here this hour, tensions with U.S. and Israel front and center at some religious events and ceremonies in Iran on Friday. CNN was there and heard from people in attendance. We have that report for you after the break. (COMMERCIAL BREAK)

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HILL: Donald Trump says he thinks there will be a ceasefire in Gaza soon. The fighting though still goes on. Several people were killed and buried under the sand when Israeli airstrike hit tents sheltering people. First responders rushing to recover victims and put out fires after Israeli airstrike hit a school building in Northern Gaza.

Gaza Civil Defense says it was housing individuals who had been displaced. This is what President Trump had to say about stopping the carnage.

(BEGIN VIDEO CLIP)

TRUMP: I think it's close. I just spoke with some of the people involved. It's a terrible situation that's going Gaza, he's asking about. And we think within the next week we're going to get a ceasefire.

(END VIDEO CLIP)

HILL: And, of course, there is the ongoing shortage of aid in Gaza and food crisis that has resulted. The Palestinian Health Ministry says two more children have now died of malnutrition. That brings the total number to 66.

CNN's Jeremy Diamond now reports on the death of a three month old baby girl who had been born healthy. And I do want to offer you this very strong warning. A number of these images that follow are extremely disturbing.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT (voice-over): Three months ago, Jouri Al-Masri was being carried out of a delivery room, swaddled in a baby blanket just like this one. Now her tiny body is set down on the cold, hard marble slab of a Gaza hospital morgue, drained of all signs of life.

[01:20:00]

Every millimeter of her body is a testament to Gaza's humanitarian crisis and Israeli policies that have enabled it. Her father says Jouri was born a healthy seven point nine pound baby but needed lactose free baby formula, which she couldn't find in any Gaza hospital.

Closing the crossings and depriving children of milk is one of the war crimes against our children, her father says. I do not know what the reason is and what their sin is to be killed in this manner. Their only fault is being innocent babies.

For weeks, Gaza's doctors and nurses have warned baby formula shortages are threatening the lives of Gaza's most vulnerable, like the babies in this neonatal unit at A1 Holeu Hospital.

MOHAMMAD TABASHA, HEAD NURSE AT AL HOLEU HOSPITAL: We have a bigger problem of shortage of milk, especially for special formula milk for all of the neonatal --

DIAMOND (voice-over): Israel's aid coordination agency, COGAT, said it, quote, "Does not prevent or restrict the entry of baby food." And said, more than 1,100 tons of baby food have entered Gaza in recent weeks.

Israel lifted its eleven week total blockade of Gaza in May, but has continued to restrict the number of aid trucks and types of aid allowed into Gaza. The result, thousands of cases of acute malnutrition among children.

Food shortages are also driving up the need for baby formula in Gaza as malnourished mothers like Fatmeh [ph] struggle to breastfeed their babies.

A mother does not even have enough to eat for herself. How can she feed her children or breastfeed them? Fatmeh asks. I was nine months pregnant when the ceasefire began, and I expected that everything would be available, especially milk. For now, Fatmeh has formula to keep her babies alive, even though limits on aid into Gaza means formula deliveries are inconsistent.

But for Jouri it is too late. Three months after she came into this world, she became the 66th child to die of acute malnutrition during the war in Gaza according to the Palestinian Health Ministry. Her father says he was out hunting for her formula when she died. It was nowhere to be found.

Jeremy Diamond, CNN, Tel Aviv.

(END VIDEOTAPE)

HILL: Heart wrenching and incredibly important reporting from Jeremy there.

There is new satellite imagery which appears to show fresh activity to Iran's Fordow nuclear facility. The site, of course, was a key target in U.S. and Israeli strikes on Iran's nuclear sites. Excavation and earthmoving equipment are visible in the images that were captured on Friday.

President Trump has repeatedly claimed the U.S. strikes obliterated Iran's nuclear program, but an early U.S. intelligence assessment has raised questions about the extent of that damage and also the impact on Iran's nuclear capabilities.

Iran's Ambassador to the UN says the country is open to transferring its stockpiles of enriched uranium to other countries under certain conditions. Meantime, Iran's President says the country avoided escalating conflict with Israel into a, quote, "Full scale and uncontrollable war in the region."

(BEGIN VIDEO CLIP)

MASOUD PEZESHKIAN, IRANIAN President (via translator): The attacks by the United States and the Zionist regime on Iran's peaceful nuclear facilities, which were under the full supervision of the International Atomic Energy Agency, are a gross violation of all international rules and an irreparable blow to the status of the nuclear nonproliferation regime by a permanent member of the Security Council.

(END VIDEO CLIP)

HILL: President Trump says he would absolutely consider further military action if Iran pursues nuclear weapons. The Trump administration also telling U.S. House members on Friday they are working to bring Iran back to the negotiating table.

Well, the tensions between Iran, Israel, and the U.S. at the forefront of religious ceremonies and events in Iran on Friday. Here's CNN's Fred Pleitgen in Tehran.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Here at Friday prayers, the prayer leader has been ripping into the United States and ripping into Israel as well. The Iranians are saying they believe that they imposed the ceasefire on the U.S. and Israel because their military was so strong. Many of the folks here chanting death to America and death to Israel.

The great nation of Iran showed resistance in these 12 days, he says, bringing the enemy to its knees. God willing, the weak enemy will be defeated even more. And he says, we will roll you out of this region with the permission of God.

The concept of martyrdom is hugely important here in the Islamic Republic Of Iran. We're currently at an event where hundreds of mothers hold their babies into the air to show that they're willing to offer them as martyrs for God and for Imam Hussein.

[01:25:00]

And this goes back to the early days of Shiite Islam where Imam Hussein, when he was besieged in Karbala, he held up his newborn baby and asked the enemy that was besieging Karbala to give the baby water, and instead the enemy killed the baby. It's a very important story here in Iran.

PLEITGEN (on camera): And, of course, all of this takes on an even greater importance now that Iran is involved in that standoff with Israel and the United States. This is an annual event that takes place every year, but folks that we've been speaking to say that for them, this year, it's even more important.

PLEITGEN (voice-over): We want to show them we are not scared of anything, she says, and will support our state until they are destroyed. And she says they need to know that Imam Hussein is our everything, and we should sacrifice our lives for Imam Hussein. This is a symbol saluting Imam Hussein, she says, who's the leader of all the oppressed who stand against oppressors and don't submit.

PLEITGEN (on camera): And just to show how big this is in Iran right now, the crowd here was chanting death to America, death to Israel, and there was even a children's choir that was singing songs as videos were shown of Iran's missile program in action against Israel and, of course, also when the Trump administration carried out those strikes against Iranian nuclear installations.

In total, right now, as this conflict is taking place, all of this extremely important to the folks here. Fred Pleitgen, CNN, Tehran.

(END VIDEOTAPE)

HILL: Thanks so much for joining me. I'm Erica Hill. For our international viewers, Inside Africa is up next. For those of you joining from the United States, we'll have much more news after this short break. Stay with us.

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[01:30:00]

HILL: Welcome back to CNN Newsroom. I'm Erica Hill. The U.S. Treasury Secretary said the U.S. could soon start reimposing some of the so called reciprocal tariffs on more than a dozen countries.

Scott Bessent telling CNBC on Friday, they're also nearing deals with 10 nations. When those tariffs were paused in April, Mr. Trump's new deal deadline was, of course, July 9. That is now just over a week away. Also on Friday, Secretary Bessent, though, telling Fox News that negotiations could be wrapped up by Labor Day. Labor Day is September 1, so that is clearly a movement of the goalpost there, a more relaxed framework than the original time frame.

Meantime, on Friday, the U.S. and China formalized a deal on shipments of rare earth in minerals, which is essential for everything from everyday electronics to fighter jets, and it was caught up in Mr. Trump's trade war. The two nations, though, have now struck a deal.

CNN's Marc Stewart has those details.

(BEGIN VIDEOTAPE)

MARC STEWART, CNN CORRESPONDENT: A major sticking point in this trade dispute appears to be resolved. The focus is on rare earth minerals, which has been a point of leverage for Beijing.

Businesses around the world, including American firms, depend on them to make things like consumer electronics, electric vehicles, batteries, drones, even fighter jets. China dominates the processing of these materials, a 90 percent hold according to the International Energy Agency. It's basically been accused of hoarding them, but now Beijing and the White House have reached a deal when it comes to access. On Thursday, President Trump at a White House event said an agreement was signed with China. Now officials here in Beijing are confirming they're now on the same page. Previously, some restrictions were put in place by the U.S., including export curves on chip software, ethane, and jet engines while threatening to revoke the U.S. visas of Chinese students. The visa issue with Chinese students was dropped recently. This is all far from spontaneous.

At one point, trade talks between the two nations hit an impasse. In recent weeks, we've seen a phone call between President Trump and Chinese leader Xi Jinping as well as more face to face talks between these two economic superpowers in London.

A mixed day in markets on Friday, at least here in Asia, this has been an ongoing strain for both Wall Street and Main Street in recent months. Marc Stewart, CNN, Beijing.

(END VIDEOTAPE)

HILL: U.S. Senators are expected to start voting on President Trump's massive tax and spending bill Saturday afternoon. It's still facing those some hurdles among Republicans over spending levels and cuts to Medicaid.

Here's CNN's Manu Raju with more from Capitol Hill.

(BEGIN VIDEOTAPE)

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: President Donald Trump and Republican leaders are pressing hard to get his massive agenda through the Senate by the end of this weekend, and Saturday is a critical day. That's when we expect the first procedural vote to open up debate on this bill.

But they can only afford to lose three Republican Senators because all of Democrats are going to vote no. Can they actually only keep the three defections? That is the big question at this moment because already two are threatening to vote against it. That's Senator Rand Paul of Kentucky. He's concerned about the impact that this bill would have on the national deficit. In fact, it's expected to add trillions of dollars to the deficit over the next decade, but I was also concerned about the $5 trillion increase that this plan calls for to the national debt limit.

And there's Senator Tom Tillis who's concerned about the cuts to Medicaid and the impacts of this bill would have on his constituents. He told reporters on Friday night that he is a no, period, saying that the fundamentals of the bill need to change. We'll see if that ultimately wins his vote if there are changes made to win him over.

Several other more moderate Senators have concerns, Senator Lisa Murkowski, Senator Susan Collins, a more conservative Senator, Josh Hawley, they all say -- raise concerns about the Medicaid cut. All of them want to see the details of this plan before they commit on how to vote. And some of the members want deeper spending cuts. Senator Ron Johnson, a more conservative member, wants deeper spending cuts, would not say how we would vote on Friday evening. Now Senator Mike Lee of Utah who suggested that that he, Lee, Johnson, and Senator Rick Scott potentially could all vote as one block on the vote on Saturday. So that will be something to watch.

But if this bill goes down today, that would be a huge and embarrassing setback for President Trump who's putting the pressure on these members to vote, yes, by his self-imposed July 4 deadline. And if that fails, they'll have to retool the package, potentially push it back to later this month.

If it is approved, then the Senate will descend into what's known as a vote-a-rama. That means a marathon series of amendment votes that will take place all through the day Saturday, Saturday night, into Sunday, potentially. That could go on for many, many hours ultimately before the bill has to its final vote on final passage.

[01:35:00]

Then it would come back to the United States House, and that's where so many House Republicans are threatening to vote against this measure because of their concerns about some of the changes the Senate made.

Then it'll be up to Speaker Mike Johnson as well as Donald Trump to cajole members and the House GOP to fall in line to get it onto his desk by July 4. So a lot of work cut out from in this major bill that deals with a multitrillion dollar overhaul of the United States tax cut.

There's deep spending cuts, new work requirements on social safety net programs, hundreds of billions of dollars in funding for defense programs, for national security programs, for border security measures, all of which raises this question. Can Donald Trump get it over the finish line, win these members over? It's uncertain at this moment as the Republican leaders and the President have a lot of arm twisting to do to get a major victory on President Trump's desk.

Manu Raju, CNN, Capitol Hill.

(END VIDEOTAPE)

HILL: New York City mayor Eric Adams is defending his relationship with President Trump. He says voters aren't concerned with the corruption charges he once faced. The Trump administration, of course, dropped those charges in return for his cooperation, things like immigration enforcement.

Adams tells CNN voters, though, should look at what he's done for the city.

(BEGIN VIDEO CLIP)

MAYOR ERIC ADAMS, NEW YORK CITY: Well, I think look at the numbers. When you allow New Yorkers to hear the real story of the success and the turnaround of developing more jobs in our individual senior years in the history of the city, in three and a half years, we have ensured that we develop housing that's needed more than the previous two mayors combined.

And then when you look at the small business operating, the safety of the city, I ran on a public safety platform, and we delivered on that. The last six months, we had the last lowest number of shootings and homicide in recorded history of this city. I am going to be able to tell the real story of how we turned the city around.

(END VIDEO CLIP)

HILL: In November's election, Adams will likely face former New York governor Andrew Cuomo and, of course, the presumptive Democratic nominee, 33 year old Zohran Mamdani. Adams was elected mayor as a Democrat, but he is now running as an independent. Sources tell CNN Cuomo will also run as an independent.

The University of Virginia's President is resigning amid pressure from the U.S. Justice Department to dismantle the school's diversity, equity, and inclusion programs.

(BEGIN VIDEO CLIP)

HILL (voice-over): Students there cheering. Outgoing President Jim Ryan, who you see, he said he is resigning with a heavy heart, writing, I cannot make a unilateral decision to fight the federal government in order to save my own job. He added that would appear selfish to employees who would lose jobs, researchers who would lose funding, and students whose visas could be withheld.

Ryan's departure comes as the Trump administration takes aggressive aim at federal funding for higher education institutions over DEI issues. UVA repeatedly asked for extensions when justice officials asked whether they were complying with a ban on affirmative action.

(END VIDEO CLIP)

HILL: Authorities in New Orleans say they have now captured another inmate who was on the run for more than a month. Antoine Massey and nine others escaped from a New Orleans jail on May 16. Investigators say they took advantage of badlocks, stolen bedding, and a hungry jail employee to escape. A tip led to Massey's arrest in a neighborhood just miles from the prison. One escapee still remains on the loose.

U.S. immigration officers arrested an American citizen this week in Los Angeles. She says they racially profiled her. The officers, however, say she was arrested for assault. Here's Tom Wait of CNN affiliate KCAL with the details.

(BEGIN VIDEOTAPE)

TOM WAIT, KCAL NEWS POLITICAL REPORTER (voice-over): A relieved Andrea Guadalupe Velez released from federal lockup embraced by her emotional mother and sister. ANDREA GUADALUPE VELEZ, DETAINED DURING IMMIGRATION RAID: It's been

hard. I didn't know all of this media coverage was happening, and I'm just relieved that I'm outside.

WAIT (voice-over): Velez's mother and sister recorded this video of her being picked up and carried away on Tuesday by federal agents conducting an immigration enforcement operation. It all happened as Velez was being dropped off at the shoe store where she works in downtown L.A.

VELEZ: It was day of work and, like, everything happened so fast, and they didn't identify themselves, so I was kind of scared.

WAIT (voice-over): Velez says all of a sudden, she was surrounded by masked men.

VELEZ: I was like, what's going on? Because, I was just -- I wasn't doing anything crazy. I was just going to follow orders, and they just decided to pick me up.

WAIT (voice-over): What the video doesn't show is the moments right before her arrest. Federal authorities alleged in a criminal complaint that is one of two ICE agents conducting the immigration check on some people in the area started to chase a man.

[01:40:00]

He saw a woman, later identified as Velez, step into his path and extend one of her arms in an apparent effort to prevent him from apprehending the male subject he was chasing.

Velez says the claim isn't true. She doesn't know the men and believes she was profiled as explained by her attorney.

REPORTER: There was a time when you're in the police custody and you believed that they didn't know you're a citizen.

VELEZ: Yeah. They didn't.

REPORTER: Can you can you talk about that?

VELEZ: Yeah. I didn't know -- they didn't ask for my ID. I think maybe towards the end when I was already in the car arrested, they asked for my ID. And they were kind of questioning whether I was a U.S. citizen or not. I'm like Latina, so I'm pretty sure I was probably racially profiled.

(END VIDEOTAPE)

HILL: Still to come here after years of conflict, Rwanda and the Democratic Republic Of Congo signed a peace deal in Washington, D.C. What's in it for those countries and also for the U.S.? That's next.

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HILL: Vladimir Putin thanking U.S. President Donald Trump for his efforts to end the war in Ukraine. The Russian President also expressed support for normalizing relations between the two countries. Take a listen.

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VLADIMIR PUTIN, RUSSIAN PRESIDENT (via translator): I believe that President Trump sincerely strives to resolve the Ukrainian issue. I think he said recently that it turned out to be more difficult than it seemed from the outside. Well, that is true. And there is nothing surprising here either. It is one thing to observe from the outside and another to immerse yourself in the problem.

Thanks to President Trump, relations between Russia and the United States are beginning to level out in at least some areas.

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HILL: Meantime, Ukrainian military officials say Russia has amassed more than 100,000 troops near the Ukrainian City of Pokrovsk.

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Russian forces have been trying to capture that city for nearly a year. Despite having a clear advantage of the number of troops and weapons, Moscow has been unable to seize the area. It's a strategic target for Moscow. It sits on a key supply road with railways connecting it with other military hubs.

Rwanda and the Democratic Republic Of Congo signing a peace deal on Friday in Washington, D.C. That deal is aimed at ending the devastating conflict in the Eastern DRC and also has an apparent benefit for one of the brokers of the deals, the United States.

As seen as Larry Madowo explains though, some remain unconvinced the deal itself can actually end the conflict.

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LARRY MADOWO, CNN CORRESPONDENT: President Trump taking a victory lap after this major peace deal between the Democratic Republic Of Congo and Rwanda. He's previously said he thinks he deserves the Nobel Peace Prize for helping make this happen. He helping make this happen.

He called it a dangerous part of the world and praised his Senior Advisor on Africa, Massad Boulos for getting it across the line. Massad Boulos is also the father-in-law to his daughter, Tiffany Trump. He hosted the leaders of the Democratic Republic Of Congo and Rwanda, their foreign ministers. He said they were very honored to be at the White House.

The parties have agreed to a raft of things. The key part of it is, the text here is important, includes the provisions on the respect for territorial integrity and the prohibition of hostilities, the disengagement, disarmament, and conditional integration of ground of ground state armed groups. And they will also establish a joint security coordination mechanism, which will be important to implement this because there have been previous peace deals that have failed between the DRC and Rwanda. Crucially, M23 rebel group are not a party to this. They are the group that the DRC accuses Rwanda of arming and supporting. Rwanda wants the DRC to disarm and stop supporting the FDLR, which they accuse of planning to overthrow the government of President Kagame.

But President Trump also said something that raised a lot of eyebrows in Kinshasa, across the region, and in the continent.

TRUMP: We're getting for the United States a lot of the mineral rights from the Congo as part of it. They're so honored to be here. They never thought they'd be coming to. Look this is a very tough part of the world. They never thought -- they were just telling me, they never thought they'd ever be coming to the White House, and they're so honored.

MADOWO: The Democratic Republic Of Congo has the world's largest reserves of cobalt, which powers everything from mobile phones to electric cars. And the question here is how did the DRC put those minerals as part of this agreement?

It didn't come up in the official signing that was led by Marco Rubio, the Secretary of State, and the two foreign ministers, but suddenly, the text will be scrutinized to see exactly what they gave up there. There's a lot of criticisms of Western countries aiming and vying for African minerals, and this suddenly fits that description that's often criticized here.

Whether this deal does work still remains to be seen, and the question of how was this signed in Washington, not in an African capital. Previous mediation efforts here in Nairobi and in the Angolan capital, Rwanda, did not bear fruit.

Larry Madowo, CNN, Nairobi.

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HILL: If, like me, you're a fan of Formula One racing, you're going to want to race to a movie theater this weekend.

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UNIDENTIFIED MALE: It's alright. You just wait. I'm quicker than you.

HILL (voice-over): Brad Pitt in the driver's seat in the new F1: The Movie. Stay tuned.

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HILL: The highly anticipated summer blockbuster F1: The Movie kicking into high gear on its opening weekend. Brad Pitt plays a former driver who returns to the sport after some 30. The movie itself is a Warner Brothers Pictures film, which, of course, is -- shares the same parent company as CNN.

Here's CNN en Espanol Elizabeth Perez with more.

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UNIDENTIFIED MALE: Some people look at Sonny Hayes. They see a guy who lives in the den, a gambling junkie who missed his shot, the best that never was. But I see possibility.

UNIDENTIFIED FEMALE: I've seen trailer. It looks really, really cool.

ELIZABETH PEREZ, CNN CORRESPONDENT: Brad Pitt, a Formula One car, and some serious high speed Hollywood magic. That's right. The Hollywood star is starring in a brand new Formula One movie named F1 film at real Formula One races with real teams and real fans watching. This could be one of the coolest racing movies ever made.

In the film, Brad plays a retired racing legend, Sonny Hayes, who is pulled back onto the grid for the last shot at glory behind the wheel. With Lewis Hamilton producing, the actual F1 teams involved in Top Gun Maverick director, Joseph Kosinski, calling the shots, this movie promises a lot.

UNIDENTIFIED MALE: Action.

GEORGE RUSSELL, MERCEDES TEAM DRIVER: It is very surreal for sure. You know, I've grown up seeing all of Brad Pitt's movies, and he's obviously such a worldwide superstar. But he came into our world, and he wanted to hear from us. He wanted our views, our opinions, how they can make the movie better, how they can make it as authentic as possible.

So, you know, I really can't wait to see it, and I feel this movie is going to be the one that we're going to love and everyone else will too.

TOTO WOLFF, MERCEDES TEAM PRINCIPAL: Such a good personality. Humble. He was really interested in the sport and learning about it. And, it's always -- you see when somebody as successful as that the character is also very, very good, and that was why working with Brad and with Javier and with Jerry overall was just a pleasure.

JERRY BRUCKHEIMER, PRODUCER, "FI: THE MOVIE": We make movies that entertain audiences. We call it, we're in the transportation business. We transport them from one place to another, and we're transporting them inside Formula One. What I love making, and I made a lot of them, is take you inside a world that you'll never be a part of and show it how it actually works.

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You will see how these teams are run and how the teams come together, the drivers come together, and it's just -- it's a fun experience. UNIDENTIFIED MALE: When was the last time you won a race?

UNIDENTIFIED MALE: Sunday, Daytona.

UNIDENTIFIED MALE: Oh, I'm sorry. I meant Formula One.

UNIDENTIFIED MALE: Oh, I'm sorry. Then same as you.

PEREZ (voice-over): And in addition to the enthusiasm of the teams, the cast of F1 are also excited for this summer blockbuster to get to the front of the grid.

SIMONE ASHLEY, ACTRESS IN "F1: THE MOVIE": I'm such a fan of Formula One, so it's be able to attend all these races and be on the grid, shooting these scenes amongst all of the chaos and the adrenaline. I'm just so deeply grateful that I got to witness and experience all this.

KERRY CONDON, ACTRESS IN "FI: THE MOVIE": So she's the technical director of the team, which is basically in charge of the car. Everything that's do with the car comes through my character. So the driver feedback about the car, if we need to change something on the car, is it going to work with the rest of the car? When we get to a track, is our car good at straights or turns? It's like, basically, everything got to do with the car is, I'm the brains. And then also, there's romance. I love a little romance.

PEREZ: Who are you kissing?

CONDON: You got to watch the movie.

UNIDENTIFIED MALE: Relapse. Relapse the lifetime.

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HILL: We may be able to guess though who she's kissing. Well, finally here, a man in Staten Island, New York had to run when a ticked off turkey went after him in his own driveway. Oh, what would we do without home security cameras?

Look at this, catching the encounter, Noel Colon said he was headed to work when he spotted the angry bird sitting in the walkway. Turns out the turkey spotted him too, and, well, as you can see there the chase was on. That turkey can really move, actually. Apparently, the thinking afterwards was the turkey was likely protecting this nest of eggs. Seems everyone's okay.

Thanks so much for joining me this hour on CNN Newsroom. I'm Erica Hill. Stay tuned. Our coverage continues after a short break.

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