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Key Negotiators From U.S., Israel And Qatar To Arrive In Egypt; Trump Meets With Canadian Prime Minister At The White House; U.S. Government Shutdown Stretches On With No Deal In Sight; French Prime Minister Holds Talks With Rivals At Macron's Request; Trump Falsely Claims Cuba Has "Virtually No Autism."; Texas National Guard Troops Arrive At Facility Near Chicago. Aired 12-12:45a ET

Aired October 08, 2025 - 00:00   ET

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

[00:00:09]

LYNDA KINKADE, CNN INTERNATIONAL ANCHOR: Hello, and welcome. I'm Lynda Kinkade. Good to have your company.

Ahead here on CNN NEWSROOM, the U.S. government shutdown enters a second week. Essential workers aren't getting paid and some are not turning up for work. Major airports across the country are experiencing delays.

Political survival in France. Can the outgoing prime minister form a government to create a path out of the crisis? He's got until the end of the day.

And Chanel's new artistic director makes a stunning debut with an out- of-this-world catwalk to close Paris Fashion Week. Margot Robbie, Pedro Pascal and Nicole Kidman were front row.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Lynda Kinkade.

KINKADE: After two years of devastating conflict, a glimmer of hope in Egypt, where a source tells CNN that Israel and Hamas have made significant progress during the first two days of peace talks. Key negotiators from the U.S., Israel and Qatar will arrive in the coming hours, which includes U.S. special envoy Steve Witkoff and Jared Kushner, President Trump's son-in-law. Ron Dermer, a close ally of the Israeli prime minister, is also expected to join the talks as they enter a critical third day.

The renewed talks come as Israelis mark two years since the October 7th attacks. Prime Minister Netanyahu pledged to secure the eternity of Israel on the second anniversary of the attacks, calling the conflict a war "for our very existence and our future."

Hamas, for its part, said it was ready to reach a deal to end the war based on Trump's proposed plan. But the militant group seeks clarity on some key points.

CNN's Nic Robertson reports from Cairo.

(BEGIN VIDEOTAPE) NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: What is -- what appears to be happening is, according to a source with knowledge of the situation and knowledge of the talks, that there is progress being made in the talks between Hamas and Israel. The proximity talks. We understand from Egyptian state media that the Hamas are looking for guarantees from President Trump, guarantees that Israel won't return to war if they give up all the hostages and meet with the conditions that are expected of them. That's what they're looking for.

They're also talking, according to Egyptian state media, Hamas also wants to know more details about the implementation of this agreement. Egyptian state media also saying that the conversations within the talks have been getting into the detail of the lists of Palestinian prisoners who would be released in exchange for the hostages. So that also sort of sets the scene for a narrative of potential progress.

And as you say, Steve Witkoff, Jared Kushner coming into the talks here, Ron Dermer, the chief negotiator, lead negotiator from Israel, is also expected to be at the talks as well as the Qatari prime minister going into -- going into the talks on Wednesday. So the scene does seem to be set for the potential for more progress, although what we heard from the Qatari -- the Qataris earlier in the day was, you know, they can't say for sure what the outcome is going to be, but the fact you have senior players coming in now is indicative of potentially being in the end stretch here and perhaps a reflection of what President Trump has been saying, that there is a positivity about all of this.

(END VIDEOTAPE)

KINKADE: Well, the effects of the week-long U.S. government shutdown are starting to show, with Republican and Democratic lawmakers still no closer to a deal. Major airports across the country are experiencing delays due to staffing issues and shortages of air traffic controllers. Officials say they're seeing more people call out sick, and they've had to close some control towers due to the shortages.

Here's what one pilot flying into the Hollywood Burbank airport in California had to do.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Just getting a heads up, you said everything's close for like our clearances?

UNIDENTIFIED MALE: Clearance is closed. Grounds closed. Locals closed. The tower is closed due to staffing. Please contact SoCal on the 800 number and the green book for your clearance.

UNIDENTIFIED MALE: All right.

(END VIDEO CLIP)

KINKADE: Another hot button issue is whether furloughed federal employees will be paid for the time they didn't work during the shutdown. Axios reports a White House draft memo suggesting there have been conversations about not -- about employees not getting backpay. CNN hasn't reviewed that memo and it's not clear how seriously that idea is being considered. President Trump says most of those employees will be taken care of.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: For the most part we're going to take care of our people. There are some people that really don't deserve to be taken care of, and we'll take care of them in a different way.

(END VIDEO CLIP)

[00:05:09]

KINKADE: Well, this week marks the last partial paycheck for some government employees until the shutdown ends. The Congressional Budget Office expects roughly 750,000 federal workers to be furloughed during the shutdown.

And after months of back and forth, the U.S. and Canada still don't have a trade deal. President Trump hosted Canadian Prime Minister Mark Carney at the White House on Tuesday. One Canadian minister said the meeting was positive, substantive and more detailed than previous talks, and added that both leaders had directed their negotiators to quickly land deals, particularly regarding steel, aluminum and energy.

CNN's Paula Newton has more from Washington.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: Prime Minister Mark Carney really set expectations low going into these meetings. He did not have any illusions that he was going to come out of the Oval Office with a trade deal. But he did come up with some frank discussion. In fact, the lunch and the Cabinet level meetings went on longer than expected.

I want you to listen to Prime Minister Carney right now.

MARK CARNEY, CANADIAN PRIME MINISTER: There are areas where we compete. And it's in those areas where we have to come to an agreement that works, but there are more areas where we are stronger together. And that's what we're focused on.

TRUMP: It's true.

CARNEY: And we're going to get the right deal. Right deal for America. Right deal obviously, from my perspective, for Canada.

NEWTON: That is an admission that the new trade deal between the United States and Canada will not be like the old one in terms of the conditions that President Trump will set on these. Having said that, the prime minister definitely has the president's attention. They have a good relationship. And I want you to listen now to President Trump talking about a potential trade deal. Listen. TRUMP: I think they're going to be very happy. We have a lot of things

that we're working on that people don't talk about. They talk about, you know, competitiveness. He's a very competitive person, and they talk about things that we don't necessarily agree on, but I think they're going to walk away very happy. I think so.

NEWTON: So happy is clearly in the eye of the beholder. I mean, look, no one in Canada is under any illusions that the deal that they have right now with Mexico, the United States and Canada that they can resuscitate that. But in terms of getting those sectoral tariffs lifted, steel, aluminum, all kinds of energy, it is important that even in the next few weeks, they might come up with some kind of a deal on that.

That's according to Cabinet officials. And perhaps it will lead to more productive talks on a wider deal. Not as favorable to Canada as others have been, but at least a more comprehensive deal in the months to come.

Paula Newton, CNN, Washington.

(END VIDEOTAPE)

KINKADE: I'm joined now by CNN global economic analyst Rana Foroohar.

Great to have you with us, Rana.

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Really good to be here.

KINKADE: So I want to start with the government shutdown. The last shutdown during Trump's first term was 34 days. It cost the U.S. economy about $11 billion. $3 billion permanently lost according to the Congressional Budget Office.

What is the true cost of a government shutdown? Beyond GDP how does it impact investor confidence, public trust and institutional credibility?

FOROOHAR: Well, you know, if you remember going back several years, we had a lot of budget shutdowns under -- mostly under Republicans. And some of those shutdowns ended up cumulatively costing the U.S. its gold-plated credit rating. We had credit write-downs, you know, big ratings agencies downgraded the credit of the U.S. after multiple government shutdowns.

But beyond that, you know, I would actually draw a link between the kind of instability, the sense that we really have this polarized politics in America that began when shutdowns became a more regular deal and the fact that you have fewer foreign buyers in each Treasury auction that the United States has. I think that there's a link where investors globally and investors at home just feel that, look, there is political risk now in the U.S. of a kind that you'd only used to see in emerging markets.

You know, it's not the same. The U.S. still has the dollar as the global reserve, although that's beginning to change. Currencies are becoming more multipolar. But it's really concerning. And I think it's something that we've only just begun to see the ramifications of really.

KINKADE: And Trump has suggested that some federal workers might not receive backpay. Many are required legally to work through the shutdown.

Would denying pay to essential workers be illegal? And what would that signal about labor protections?

FOROOHAR: Nothing good. And that's something that's already been an issue. You know, Trump has really come down on the National Labor Relations Board. A lot of labor activists are very concerned about the way he's treated labor rights in this country. Whether it actually is illegal, which it certainly seems like it would be on paper, would be up to the courts to decide.

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The courts, interestingly, have been ruling at the federal level against Trump in a lot of areas. The Supreme Court has been upholding, you know, some of the more extreme actions that we're seeing. So that's a question that we can't answer right now. But what I will say is, again, this would lead to a certain amount of economic instability, not just in Washington, but beyond. There are a lot of federal workers that have their hands, you know, touching a lot of different operations around the country that could potentially be yet another tailwind for recession in the U.S.

KINKADE: Yes, and I want to turn to the trade war, which is hitting some key U.S. industries quite hard, especially soybeans the largest U.S. export to China. In 2024, China bought some $12.6 billion worth. This year it's zero. China has turned to Brazil and Argentina instead, and most soybeans are sold between October and December. If that window closes, the losses could be permanent.

So, Rana, what happens if U.S. farmers lose their biggest buyer for good? Can this market be recovered?

FOROOHAR: Well, it's certainly going to need to be diversified. And that is the byword for everybody right now with the tariff situation being what it is and with the sense that, look, we're in a new economic era. The U.S. and China are decoupling, no question about it. And so supply chains are going to need to be refigured. New buyers are going to need to be found for U.S. commodities.

What I find so interesting about this is that the place that China is getting soybeans from, you mentioned Brazil, Argentina. Very interesting, both in Latin America and Latin America I think is going to be one of these warring grounds, these battlefields where both the U.S. and China are going to square off for trading partners. You see the U.S. bailing out Argentina. Well, Argentina is also where the Chinese are buying cut rate soybeans instead of getting them from the U.S. So it's a really interesting, concerning, challenging geopolitical arbitrage going on right now. KINKADE: I want to turn to Canada and the U.S. trade. So Trump met

with Canadian Prime Minister Mark Carney today to discuss trade. And unlike many other countries, Canada has yet to secure a bilat deal with the U.S. What's preventing that?

FOROOHAR: You know, there shouldn't be anything preventing. If there is any country that the U.S. should be getting closer to, it's Canada for all sorts of reasons. Rich source of natural resources, important security partner in the Arctic, which is becoming a real geopolitical hot zone. The U.S. and China and Russia are all fighting over territory. Rare earth minerals, more shipping being done to the region. Very important to have Canada on board in that area.

I suspect that this may come down to personality types. I predict a deal will be made eventually. It's just impossible to think that the U.S. and Canada would be in a long term trade war. Certainly it would be pretty devastating for the Canadians who do need the U.S. in terms of trade more than the U.S. needs Canada.

KINKADE: Rana Foroohar, great to get your analysis across many different topics. Thanks so much.

FOROOHAR: Thank you.

KINKADE: It is deadline day in France where the prime minister is making an 11th hour bid to find common ground with political rivals and forge a new coalition.

Sebastien Lecornu resigned Monday after just weeks in office, but agreed to the French president's request to hold one final round of talks. He'll be meeting with the Greens and Socialists in the coming hours, and the stakes are incredibly high for President Emmanuel Macron, who is facing calls to step down. He was seen walking along the River Seine in Paris Monday after Lecornu resigned.

CNN's Melissa Bell reports.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: Last ditch negotiations are underway here in Paris as Sebastien Lecornu tries one last time to cobble together a functioning government. This at the request of President Macron who asked him after he'd resigned on Monday to give that government one last chance.

He has to convince those parties who'd agreed to work with him originally about the composition of the government and he has until Wednesday evening to do so. He tweeted himself Sebastien Lecornu about these negotiations, saying that the urgency here was to try and deal with the budget. The French government has until the middle of October to get before parliament, budgetary proposals that need to involve budget cuts if France is to avoid its looming debt crisis.

All of this putting extra pressure on the shoulders of a man who is giving these last ditch talks a try. Should Sebastien Lecornu fail in convincing his partners, those parties with which he had hoped to work to do so, then we understand that the French president will be taking his responsibilities.

[00:15:00]

What he means by that is far from clear. Essentially three options before him. Either dissolving parliament once again but polls show that a snap parliamentary election would see the far-right do even better than the last time parliament was dissolved in June of 2024. He could also try and name another prime minister, but at this stage he's seen five prime ministers come and go since the start of his second term. And there are fears that, once again, this might not work and once again waste time.

The third option, which had seemed very unlikely because the French president had said all along that he would not be resigning and would be sticking it out until the presidential election of 2027, would be that he calls a snap early presidential election. The trouble with that polls also suggest that the far-right would do very well, with the latest polls suggesting they would get up to 35 percent of the vote.

Melissa Bell, CNN, Paris.

(END VIDEOTAPE)

KINKADE: Well, still to come, President Trump's false claim that there is no autism in Cuba surprised doctors on the island. We'll hear from them next.

Plus, protesters in Ecuador throw rocks at the presidential convoy. The government calls it an assassination attempt. We'll hear why activists say they are the victims of government violence.

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KINKADE: To Ecuador now, where five people have been arrested after protesters attacked a convoy carrying the president. Officials say the suspects will face terrorism and attempted murder charges. Video released by the Ecuadorian presidency shows hundreds of people on the road around the convoy throwing rocks. President Daniel Noboa was not harmed, but the country's energy minister claims this was an assassination attempt.

And they say signs of bullet damage were found on the president's vehicle. Last month, the presidential motorcade was attacked by crowds in another province. Protesters argued the government is violently repressing dissent over President Noboa's new policy on diesel fuel subsidies. And an indigenous activist group says the government is carrying out a brutal crackdown on protesters.

Last month you might recall U.S. President Donald Trump linked autism to Tylenol use during president despite decades of evidence that it's safe. He also falsely claimed that autism is not present in Cuba because people there don't use that painkiller or fever reducer.

CNN's Patrick Oppmann visited a school for children with autism in Havana to find out more.

(BEGIN VIDEOTAPE)

PATRICK OPPMANN, CNN CORRESPONDENT (voice-over): Music class at the school for Cuban children is an opportunity to make some noise and have some fun. The more than 50 children here face a unique challenge on top of all the other challenges of life in Cuba. They've all been diagnosed with autism.

Music therapy is one of the treatments the school offers to kids who range from ages 6 to 18. Immediately our camera sparks our curiosity and music class becomes dance class. For more than 20 years, Cuba's government has operated specialized schools for children on the autism spectrum. In addition to their lessons, kids here learn life skills. Like how to set a table before mealtime.

"We teach them to eat, to bathe," she says. "We help them with socialization, communication and how to behave, which is an area that's one of the most challenging for them."

There are 10 schools like this across the island, educators here say, and that there is autism in Cuba is no secret, which is why they tell us they were caught off guard by U.S. President Donald Trump last month.

TRUMP: There are parts of the world that don't take Tylenol. I mean, there's a rumor, and I don't know if it's so or not that Cuba, they don't have Tylenol because they don't have the money for Tylenol, and they have virtually no autism. OK? Tell me about that one. And there are other parts of the world where they don't have Tylenol, where they don't have autism. That tells you a lot.

OPPMANN (voice-over): Both of Trump's claims that there is next to no autism and no Tylenol in Cuba are contradicted by the facts on the ground.

We've already shown you that, yes, autism exists in Cuba and as well for decades, Cubans had readily accessible to them a locally produced version of Tylenol. But that medicine like many others is becoming harder and harder to find as Cuba endures the worst economic crisis in years. And so Cubans are increasingly having to find medicines like Tylenol on the black market rather than in government pharmacies.

(Voice-over): Cuban psychologists studying autism say they're unaware of any link between Tylenol and the condition. The same conclusion reached by many other scientists around the world.

"There are many factors behind someone being diagnosed with autism. It's very unique. It has to do with genetics. There are some factors that are hereditary. Others no."

Autism is part of life in Cuba. And it's also true that people with autism face the same shortages that everyone else here does, which the Cuban government maintains are primarily the result of increased U.S. economic sanctions.

This school has been hit hard by daily power cuts, and plummeting salaries for state employees.

"We do lack things," she says. "To say we do not lack things, materials and tools isn't true. We need them. The human resources we have which is the most important."

[00:25:01]

Despite Trump's misinformed comments, Cubans studying autism tell us they would welcome closer collaboration with the U.S. to further understand a global health issue that transcends both borders and politics.

Patrick Oppmann, CNN, Havana.

(END VIDEOTAPE)

KINKADE: Well, the Texas National Guard troops have arrived in Illinois. What we know about their potential role in helping to keep protesters in check. That story next.

(COMMERCIAL BREAK)

KINKADE: Welcome back to CNN NEWSROOM. I'm Lynda Kinkade. Let's take a look at today's top stories.

[00:30:20]

Israel and Hamas have made progress on peace talks, according to a source speaking with CNN.

A number of key negotiators are expected to arrive in Egypt in the coming hours to join as the talks enter a critical third day. According to Egyptian state-affiliated media, Hamas has asked for clarification on the implementation of the 20-point plan.

The week-long government shutdown continues, and it's already causing flight delays at major U.S. airports across the country. They're facing shortages of air traffic controllers. Some are working through the shutdown without pay. Others are not turning up to work. Some control towers have been forced to close.

In France, last-ditch efforts to form a ruling coalition in France is underway. Outgoing Prime Minister Sebastien Lecornu will meet with at least two more opposition parties at the request of the French president.

If there's no progress, Emmanuel Macron will be under more pressure than ever to step down or hold snap elections.

Chicago's mayor is lashing out at the deployment of Texas National Guard troops in Illinois. Mayor Brendan Johnson calls the deployment illegal and dangerous and is suing to stop it.

The troops are part of the Trump administration's effort to protect federal immigration agents amid growing protests.

CNN's Omar Jimenez reports.

(BEGIN VIDEOTAPE)

OMAR JIMENEZ, CNN CORRESPONDENT: Now that the Texas National Guard is here in Illinois, the question is what will their deployment actually look like?

We've been here throughout the day, monitoring outside this Army Reserve training center. And really, some of the new things that popped up are this fencing, for example.

Of course, as more people started to get curious as to what their operations actually looked like, we have seen, in these nighttime hours, uniformed military personnel coming in and out of what appear to be barracks or some form of structures here on the front.

But again, this fencing was put up hours after the Texas National Guard was seen here initially on the first place.

Now, when we talk about the scope of what their deployment is actually going to look like, one of the main concerns comes down to how community-facing will they be? Some of the folks in many of Chicago's communities -- we are just outside Chicago -- but in Chicago's communities, many people have already had --

JIMENEZ (voice-over): -- what, at this point, have become high-profile run-ins with federal immigration enforcement.

Remember previously, when the National Guard was being considered here, it was over violent crime. Now it seems to be, at least in part, trying to bolster the federal response to what we have seen on the immigration front in the city of Chicago.

We got some hints from Gregory Bovino, who was sort of helped lead the immigration response for the Trump administration in various jurisdictions, including L.A. And we have seen his operational control here in Chicago, as well.

He said, at the very least, if these National Guard troops are sent out to protect federal property and personnel, as has been laid out in the White House memo to this point, then it also frees up federal agents to do other types of work.

JIMENEZ: And then hanging over all of this is this lawsuit that the federal judge did not immediately deny troops being deployed here; instead gave the Trump administration two days to respond with oral arguments over this, set for Thursday.

So, the beginning of a new chapter in this back and forth between the Trump administration and local officials here in the Chicago and Illinois area. But what exactly that next chapter looks like is yet to be seen.

Omar Jimenez, CNN, Elwood, Illinois.

(END VIDEOTAPE) KINKADE: Well, still to come, the new top designer at Chanel makes an intergalactic debut at Passion [SIC] -- Paris Fashion Week. We'll have that next.

(COMMERCIAL BREAK)

[00:38:46]

KINKADE: Welcome back. Tesla has unveiled new, cheaper versions of the company's two main cars, the Model 3 and the Model Y.

The roughly $5,000 price cut aims to create a more affordable starting tier for buyers. And of course, it comes after the expiration of the $7,500 E.V. tax credit for U.S. consumers.

So, what's the ripple effect of these price reductions? Take a listen.

(BEGIN VIDEO CLIP)

JOHN MURPHY, MANAGING DIRECTOR OF STRATEGIC ADVISORY, HAIG PARTNERS: When you start cutting price and devaluing the product, it means the existing product that's in the market, hundreds of thousands of Tesla Model 3s and Ys that are in the U.S., have now also been devalued.

So, when those consumers come back in to trade in those vehicles and tries to use the equity in their vehicles to buy the next new Model Y or 3 or other vehicle, it's going to be very difficult for them to do so, and their equity is a lot lower.

It's a big problem.

(END VIDEO CLIP)

KINKADE: The Trump administration has ordered FBI employees to search for papers and records related to the disappearance of the famed pilot, Amelia Earhart.

Two law enforcement sources tell CNN that the FBI workers in Washington and New York have until Wednesday to respond to the request.

President Trump announced last month that he plans to declassify and release all government records related to the aviator.

Earhart was trying to become the first woman to fly around the world back in 1937, when her plane went missing over the Pacific Ocean. She was declared lost at sea after a 16-day search.

And finally, a debut and a grand finale.

Chanel's new artistic director brought fashion Paris week [SIC] to -- Fashion Week in Paris to a close at the historic Grand Palaise monument, which recently underwent a $500 million restoration.

The set wasn't just a whole new world. It was an entire solar system with glowing planets. Matthieu Blazy is the fourth artistic designer to lead the Chanel

fashion house, and he received a standing ovation.

But despite all the eye-catching decor and the celebrities, which included Ambassador Nicole Kidman, as well as Margot Robbie and Pedro Pascal, he made it clear that the clothes come first, as -- well, that does it for this edition of CNN NEWSROOM. I'm Lynda Kinkade.

Stick around. WORLD SPORT is next.

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