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Iran Focused Only On Negotiations With Oman About Soh; Israeli Attacks Kill Dozens In Gaza After Disarmament Deal; Arson Arrest Made In Connection With Spokane Wildfire; Young Family Adjusts To Life In Mexico After Leaving U.S.; Hungary's Only Nuclear Power Plant Faces Shutdown Amid Drought; Storms Disrupt Cuba's Efforts to Restore National Power; Teachers and State Employees Protest Low Pay, Job Cuts in Argentina; First Deaths Report in U.S. Cyclosporiasis Outbreak; U.S. Treasury Confirms Yen Purchase in Joint Market Intervention With Japan; Michigan to Vote in Primaries for Governor and Senate; Polish Man Swims for 54+ Hours From Sweden to Poland; Growing Calls for Infantino to Step Aside as FIFA President; Cape Verde's Vozinha Signs Contract With Chile's Colo-Colo. Aired 2-3a ET
Aired August 04, 2026 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[02:00:31]
ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world. I'm Rosemary Church.
Just ahead here on CNN NEWSROOM, President Trump says he's giving Iran one last chance for a new deal after calling off strikes this weekend.
The U.S. and Japan joined forces to help support the struggling yen. We will look at why Washington took this highly unusual step.
Plus, can FIFA President Gianni Infantino hold on to his job. UEFA leads the calls for his resignation after his failed World Cup plan.
ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Rosemary Church.
CHURCH: Good to have you with us. President Trump warns Iran has a last chance to sign a deal with the U.S. to end the war, but says there are no time constraints on negotiations. President Trump also went after Iran's leadership after Tehran contradicted his claim that negotiations would resume on Monday. Iran's foreign ministry says it's focused only on negotiations with Oman about the Strait of Hormuz. Tehran says the two countries are in talks to establish a safe temporary route for vessels through the critical waterway. Our Kristen Holmes has more from the White House.
(BEGIN VIDEOTAPE)
KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: President Trump laid out some of why he decided not to continue with this enhanced military action over the weekend, saying that he received calls from Saudi Arabia, UAE, Qatar, all asking him not to do any kind of increased military action in Iran, and instead saying that Iran was ready to come to the table, that they wanted to talk about the denuclearization of Iran.
But of course, the question remains, what is actually different this time than the several other times we have seen over the past five months, in which President Trump has threatened enhanced military action, only to then back down, saying Iran wanted to come to the table and then have it all completely fall apart? Here's what President Trump said when he was asked about this.
LUCAS TOMLINSON, FOX NEWS CHANNEL CORRESPONDENT: This is at least the fifth time you've turned off airstrikes against Iran since April to negotiate. What is your message to the American people who are wondering what has changed this time? Why should it be any different?
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: Well, you don't know. I don't know. I think we're going to maybe get something. But I want to give them every last chance before decapitation. Very tough to do, what we have planned, still planned. We'll see what happens.
HOLMES: He also said that these talks were ongoing. At one point, he said that this was their last chance to come to the table to have a conversation. But he also said that there was no real time limit on how long he would let these negotiations or these conversations go on for.
One thing is very clear, President Trump is growing more and more frustrated by the day. This is something he had posted on Truth Social. He said Iranian leadership is unbelievably duplicitous. They ask for a meeting. Some would say beg. Talks begin with more scheduled in the immediate future, and then they say openly and proudly that they're not having any discussions, then they go on to give their usual blather in saying the Strait of Hormuz will be operated powerfully by them.
Clearly, here he is pessimistic about these negotiations. We have heard him go back and forth between pessimism and optimism over the last 24 hours as to what exactly could happen here.
Now, one interesting part of this, as you described, this is happening in phases. The first phase being the reopening of the Strait of Hormuz, followed by these conversations about denuclearizing Iran. We've heard that before. This is almost exactly what was laid out in that memorandum of understanding, which, of course, as we know now, was essentially torn up, thrown out. Looks as though they are back now to this square one.
Kristen Holmes, CNN, the White House.
(END VIDEOTAPE)
CHURCH: Behnam Ben Taleblu joins us live from Washington. He is the senior director of the Iran Program at the Foundation for Defense of Democracies. Appreciate you joining us. BEHNAM BEN TALEBLU, SENIOR DIRECTOR, IRAN PROGRAM AT THE FOUNDATION
FOR DEFENSE OF DEMOCRACIES: Great to be with you, Rosemary. Thanks for having me.
CHURCH: Wonderful. So, President Trump threatened Iran on Monday, saying this is their last chance to sign a peace deal before facing decapitation. Now, we have heard this before, but this time it comes a day after Donald Trump was claiming a deal would be made on Monday. So, what's going on here do you think?
TALEBLU: Well, I think the public is in a familiar but frustrating place, but so to a certain degree are American policymakers. I mean, the choices before the policymakers are stark, and this idea of have to negotiate again when the regime even looked a gift horse in the mouth last time and continued to fire on ships after the MOU was in place. Even the Trump administration was willing to waive oil sanctions later on. Something tells me that's not going to produce peace and stability in the Middle East.
[02:05:24]
On the other hand, the talk of going after energy infrastructure. And wider strikes across potentially even civilian targets inside the Islamic Republic. That's not going to do it either. I think we have a lot of tactics here, but a real need for strategy.
CHURCH: Now, President Trump keeps saying Tehran asked for talks, even said they begged for them, but Iran denies that, and we have seen reports of vessels being struck in the Strait of Hormuz. Clearly, Tehran's leadership is not taking Trump's threat seriously.
So, what's Iran's endgame, and what are they holding out for in terms of a deal?
TALEBLU: Well, I fundamentally do not believe that the Islamic Republic believes a deal is on the table, nor do they believe that a deal actually suits them.
At this point in time, despite all the talk of fracture and a different kind of leadership, this is a leadership in that country that is keen on survival, that is able to play to the edge militarily and politically against foreign adversaries, and unfortunately, here believes that the U.S. is not going to be making good on its threats. That doesn't mean you have to believe in the content of the threats the president made good about energy or civilian infrastructure or anything else.
But certainly, when there is a deficit in deterrence due to the public speech of different U.S. officials, well, then that regime is going to escalate and play to the edge, and their ultimate goal is survival.
But in the short to medium term, for the next two years, it's to impose a political cost on the Trump administration and outlast the Trump administration.
CHURCH: And you recently wrote an opinion piece for the Washington Post, saying, and I'm quoting here, Tehran has come to believe it can prevail in a battle of wills. What do you mean exactly by that? And how does Iran's approach to this war compare to the way the Trump administration is approaching this?
TALEBLU: Well, fundamentally, they believe they have more interests at stake, the survival of the regime, the way that they've kind of set around their security posture in their neighborhood, allowing them to bully American partners that you know don't even live on the shores of the Persian Gulf, countries like Jordan, for example.
And so, in this battle of wills, they're willing to pick off elements of the American presence and even elements of the American order, which means that the trend line in the future is going to be more escalation from this regime rather than more engagement with this regime, because they know they can't win an outright conventional conflict.
But if they show that they have more interest on the board that they're harder to control, then they think that might get America to cut and run.
CHURCH: And of course, negotiations are currently underway between Iran and Oman. They have told us themselves. But what do you expect to come out of those talks?
TALEBLU: Well, certainly, I think there's another party here, whether indirectly or informally, whatever is agreed to between the Iranians and the Omanis certainly is going to have an impact on how long America is going to be pausing strikes, and will America recognize or bless what comes out of that agreement?
Previously, the Iranians have said that they're looking to have majority control for entry and or exit in the Strait of Hormuz, into the Persian Gulf. There will probably be some sort of sharing agreement with the Omanis about the pathway, about whose territorial waters ships go in and out of.
But ultimately, the Iranians are trying to cement what they have had in their view, which is they believe they've had a military win, and they believe to the victor go the spoils, if the spoils of the Strait of Hormuz, and they understand America and the West cares about it, so they're keen to extract a very high price.
CHURCH: Behnam Ben Taleblu, thank you so much for joining us. Appreciate it.
TALEBLU: Thank you.
CHURCH: Of course. Russian officials are reporting a new deadly drone strike in the Moscow region. The state-run TASS news agency cites local officials who say five people were killed and six others wounded. This comes a day after Russian authorities blamed debris from a Ukrainian drone for killing at least seven people on a crowded beach in southern Russia. They reported at least three of the victims were children, and we should warn you the video is disturbing. Ukraine's Center for Countering Disinformation says the drone was shot
down by Russian air defenses. CNN's analysis of the video finds that the seconds before the explosion, automatic gunfire from at least three weapons can be heard.
During the gunfire, the drone veers sharply and dives into the beach. It appears to have overshot a Russian radar installation just west of where it came down.
Palestinian health officials say more than two dozen people have been killed by Israeli strikes in Gaza since Thursday, when President Trump announced what he called an historic peace deal between Israel and Hamas. Hamas has said it will disarm only if the attacks stop and Israeli troops withdraw from territory taken after last October's ceasefire agreement.
[02:10:21]
But an Israeli official tells CNN Israel will not pull back and will continue to confront anything it considers a threat. The Israeli encroachment means two million Palestinians are crammed into an increasingly tiny fraction of Gaza's territory in the sweltering summer heat.
Our Jeremy Diamond has more now on the Gaza strikes and a warning, his report contains some disturbing video.
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT (voice-over): Carried in men's arms or bundled in blankets, wounded Palestinians are rushed into ambulances. Amid the mayhem, a boy cries out for his brother before yet another casualty is hauled out on a stretcher. This is Gaza plunged back into chaos, just as hope appeared on the horizon.
Israel carried out this deadly series of strikes this weekend, just hours after President Trump announced a historic agreement for the complete disarmament of Hamas. That deal called for Israel to first halt all strikes in Gaza before Hamas starts handing over its weapons.
Instead, Israel ramped up its attacks, killing at least 28 people in the wake of Trump's announcement, according to the Palestinian Health Ministry.
The Israeli military said it had carried out targeted killings of Hamas commanders and militants, including some involved in the October 7 attack on Israel. For some in Gaza, the strikes were evidence that Israel cannot be trusted.
This is the fate awaiting anyone who gives away the resistance's weapons. We will be torn apart, this man shouts. Israel cannot be trusted. Our weapons are what protect us. It would be a disgrace for us to abandon them.
Israeli bombs also left this enormous crater next to one of Gaza's largest hospitals, striking two warehouses where medical supplies were stored. The Israeli military said Hamas had stashed weapons here but provided no evidence. On the ground, only medical equipment like these dialysis supplies can be found.
Why? What happened? What's inside it to be struck like that? Look what they did to the people, this woman cries. I was optimistic yesterday and said, God willing, a new government will come to take control of Gaza, rebuild Gaza. There will be reconstruction and peace and we will live in safety.
Instead, those who had pitched their tents alongside this hospital in the hope of the safety it might provide are forced to pick through the wreckage before starting over once again. The strikes prompted this rare missive from the Board of Representatives for Gaza, who wrote the strikes killed civilians and destroyed medical supplies before noting that both parties carry obligations under the comprehensive plan.
Jeremy Diamond, CNN, Tel Aviv.
(END VIDEOTAPE)
CHURCH: Turning now to the state of Washington, where a man has been arrested and accused of deliberately setting one of the three major wildfires burning in Spokane County. The sheriff's department provided this screenshot earlier, showing the suspect being led away in handcuffs, those fires have been burning out of control since they broke out over the weekend. Nearly 65,000 people have been forced to evacuate.
Officials say more than 700 structures have been destroyed. Many homes are among them, but so far, no injuries or deaths have been reported.
Earlier, my colleague Elex Michaelson spoke with Washington State Governor Bob Ferguson. He shared more details about that arrest.
(BEGIN VIDEO CLIP)
GOV. BOB FERGUSON (D-WA): It's arson. The individual we understand does have a criminal record, and it just takes a tragic situation. Just makes it more heartbreaking to think that that much of this damage could have been caused by an individual doing this on purpose, so it adds to a really challenging situation.
ELEX MICHAELSON, CNN ANCHOR: So, the arrest is 37-year-old Aaron Farinacci, a convicted felon, and you understand that that folks nearby saw him potentially, you know. Tell us about what you've learned.
FERGUSON: Yes, our understanding is, and this is want to be very clear, late-breaking development, but the understanding is that individual individuals saw him acting suspicious, and then there was smoke a few minutes after that. Police obviously did you know their work and running the ground for that probable cause, that type of thing, and arrest was made, an announcement was made in Spokane, literally just a couple hours ago.
(END VIDEO CLIP) [02:15:10]
CHURCH: High temperatures and dry conditions continue to fuel wildfires throughout Europe, including in Greece. Hundreds of firefighters and more than 20 aircraft were deployed northwest of Athens on Monday as flames engulfed forests there.
Authorities are investigating a deadly helicopter crash, which happened during firefighting efforts over the weekend. Thousands of hectares have already burned during the seasonal fires, which experts say have been made worse due to climate change.
Fire units in the Netherlands also move swiftly to put out the flames burning through a nature reserve there. Nearby campers were evacuated from the area so crews could stop the spread of the fire. Aircraft were also deployed to spread fire retardant through the treetops. The wildfire is reportedly a rare occurrence in the Netherlands.
Still to come, why a family whose lives and futures were built and based here in the United States have found a sense of safety in Mexico. We'll explain.
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[02:20:41]
CHURCH: Welcome back, everyone. European Union interior ministers will soon hold an emergency meeting to address Spain's migrant crisis and the political backlash that has followed.
On Thursday, some 60,000 people made the dangerous crossing from Morocco into Spain's North African territory of Ceuta. At least 72 people were killed, some drowned as they tried to swim to the tiny enclave, and some were trampled by Russian crowds. Spain says most of the migrants returned to Morocco within 48 hours, but an estimated 2,000 people remain and are now receiving humanitarian aid, including food and water.
But the chaotic border crossing has sparked a political crisis in Europe, with far-right anti-immigration politicians calling it an invasion, and leaders of some countries, including Italy, threatening to tighten border security. Aid workers in Ceuta are denouncing that reaction.
(BEGIN VIDEO CLIP)
RAMSES MOHAMED, SOCIAL EDUCATOR, ELIN ASSOCIATION: These people has been used as political tool to make pressure in this -- in this international scenario, these persons are not from Morocco. These persons come from countries where there is war, there is hungry, there is death, like Sudan, like Yemen, like Mali. Come from a lot of contexts where there is violence, and for that reason, they had a profile of asylum seekers.
(END VIDEO CLIP) CHURCH: The leader of Britain's right-wing Reform U.K. party is proposing using the military to stop asylum seekers crossing the English Channel. Nigel Farage says his so-called Operation Fortress would intercept asylum seekers in small boats and return them to France. He says if his party is elected, the plan would take effect, "Within a fortnight."
But Reform U.K. is facing growing political pressure. Farage's party has lost its lead in opinion polls for the first time in a year, and is facing investigations into alleged financial impropriety.
A couple who were brought to the U.S. as children have made the grueling decision to leave the only home they've ever known to escape what they describe as persecution from the Trump administration's harsh immigration policies. The Dominguez family, including their four U.S.-born children, are now adjusting to life in Mexico, and the transition has not been easy. CNN's Carolina Peguero has their story
(BEGIN VIDEOTAPE)
CAROLINA PEGUERO, CNN CORRESPONDENT (voice-over): With songs and prayers. This young Mexican couple of pastors held their final church service in Minneapolis, Minnesota. Months later, from their kitchen table of their new home in Morelos, Mexico. Abdiel and Adeline Dominguez share why they decided to leave the United States.
ABDIEL DOMINGUEZ, BROUGHT TO U.S. AS A CHILD: It's one thing to say we're going to move to another city, and another thing to say we're going to move to another state, but then to move to another country, it's a big big move. So, we prayed a lot. We ask God for guidance.
PEGUERO (voice-over): In the last year, the Dominguez family says that along with their community, they have been targeted by the Trump administration and its anti-immigration policies.
ADELINE DOMINGUEZ, MOVED TO MEXICO: That wasn't just us; it was thousands of other families that were going through the same things.
ABDIEL DOMINGUEZ: Just the fear that paralyzed the whole state, the whole country. I think they felt the fear -- the fear -- the fear that we were fearing.
PEGUERO (voice-over): Both dreamer recipients say their resources and livelihood became limited because they couldn't work or go out. Together with their four children, they felt trapped in their own home.
ADELINE DOMINGUEZ: They saw a lot of parents being taken away. And so, that's why they agreed with also coming. And so, there's a song that I sing to my son every night, and it's you're my sunshine, little sunshine, you know, please don't take my sunshine away.
And so, singing that song, it's like has a deeper meaning now, because that's singing that song there, it was just like I don't want them to take them away. PEGUERO (voice-over): They drove several hours to the Chicago airport, accompanied by loved ones, so they could give them their final goodbyes. Now in Mexico, they still haven't been able to adjust to their new life.
ABDIEL DOMINGUEZ: Like in the Wizard of Oz, you know, like when she said you're no longer -- I think she says you're no longer in Kansas, you know, or something like that. We feel like we're somewhere down south the U.S. You know, living in a small-town border, but we just -- we just got to keep busy, keep our kids busy, and just trust in God. You know, and know that God has good things for us, better things for us.
[02:25:24]
Carolina Peguero, CNN.
(END VIDEOTAPE)
CHURCH: For the first time, the outbreak of cyclosporiasis is being blamed for fatalities. What health officials say was likely a contributing factor. We'll take a look.
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[02:30:10]
CHURCH: Welcome back, everyone. Hungary's only nuclear power plant is on the verge of shutdown due to a drought. The plant usually generates about half the country's electricity, but it was reportedly running at just over 10 percent of its capacity on Monday.
The plant uses water from the Danube River as a coolant, but the river's water levels hit a record low and are projected to fall further. The expected closure of the plant risks a widespread energy crisis.
Cuban officials are working to restore power after the island was again plunged into darkness, but the nation's utility providers say thunderstorms and a power fluctuation are making that harder. Sunday's power grid shutdown was the sixth blackout this year.
Cuba's aging infrastructure is largely to blame, but a U.S. blockade on the oil that Cuba needs to power its system continues to make matters worse, and it's taking a toll on the roughly 10 million people who live there.
(BEGIN VIDEO CLIP)
NOSBIEL CASTILLO, HAVANA, CUBA RESIDENT (through translator): It's hard to get up, go to bed without power, wake up without power. You have to live day by day, so to speak, and it's tough. It's tough. It's tough because things go bad in the refrigerator and you just don't feel like working.
(END VIDEO CLIP) CHURCH: Teachers and state employees marched through Buenos Aires on Monday in a national strike. The demonstration, which left some classrooms empty, led to the presidential palace known as the Pink House.
Protesters are demanding pay rises and denouncing job cuts under Argentine President Javier Milei's government. He came to power three years ago on a promise to slash public spending and has yet to implement the university funding set out in a congressional law.
(BEGIN VIDEO CLIP)
SONIA ALESSO, GENERAL SECRETARY, CTERA (through translator): Milei's government has taken away educational programs, teachers' training, teachers' salaries, school infrastructure, everything that makes for quality education and educational investment.
We are demanding, together with Education International Worldwide, more budget for public schools, which is what they have taken away from us. That is why today we are on strike and marching.
(END VIDEO CLIP)
CHURCH: One of Colombia's most active volcanoes is now under an orange alert in case of an eruption. Increased volcanic activity began last month, with the highest levels recorded since observations began more than three decades ago. Colombia's geological service has warned people not to approach the volcano's upper areas, along with two other neighboring volcanoes.
Well, for the first time, the cyclosporiasis outbreak in the U.S. has turned deadly. Health officials say two people in Michigan died from complications related to the infection linked to lettuce. Colin Jeffery has details.
(BEGIN VIDEOTAPE)
COLIN JEFFERY, CNN NEWSOURCE COORDINATING PRODUCER (voice-over): The first known deaths in the multi-state cyclosporiasis outbreak have been confirmed in Michigan. State health department officials say that both individuals had significant underlying health conditions that may have been impacted by cyclosporiasis and dehydration.
The CDC has identified more than 18,000 cases of domestic cyclosporiasis this season, with more than 6,000 cases confirmed and another 11,000 additional cases undergoing further testing.
ADDIE OLSON, POLK COUNTY HEALTH DEPARTMENT: When we find out about a case of cyclospora, our communicable disease team will talk to them and ask what they've eaten and where they've eaten for the past two weeks. It's a really detailed process.
JEFFERY (voice-over): Those who contract the disease say the symptoms can be strong for several days.
GRETCHEN PLEUSS, SUFFERED FROM CYCLOSPORIA: The first onset was, you know, what everybody talks about, which is the explosive watery diarrhea, which is no fun, but it's really the symptoms that arise from that, that cause all the stomach pains.
JEFFERY (voice-over): But people like Gretchen say the explosive diarrhea is not the only problem.
PLEUSS: I had to drink a lot of electrolytes to just try to keep some hydration in my body. I was unable to eat anything for about, I would say, about 36 hours.
JEFFERY (voice-over): Health officials say deaths from cyclosporiasis are far from common as the infection is, quote, "generally not a life- threatening illness."
I'm Colin Jeffery reporting.
(END VIDEOTAPE)
CHURCH: The U.S. Treasury confirmed it bought a large sum of yen in a joint market intervention with Japan. After the break, we will get expert insight on whether the unusual move can provide lasting relief for Japan's struggling economy.
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[02:39:16]
CHURCH: Welcome back, everyone Mayor mars detained former leader and Nobel laureate, Aung San Suu Kyi met with a representative of the International Committee of the Red Cross on Monday. These government released images appear to show her first public meeting with a foreign official in years and follow growing concern about her health in prison.
Suu Kyi has been detained since 2021 when a military coup overthrew her democratically-elected government. Her son, who has campaigned for years for his mother's release, reacted to the meeting.
(BEGIN VIDEO CLIP)
KIM ARIS, AUNG SAN SUU KYI'S SON: Well, it's the first independent proof that I've had that she's actually alive for a long time now, so it's extremely meaningful.
[02:40:00]
But I can only hope that this is just a step forwards to her actually being free, because she was incarcerated under trumped-up charges in the first place and should never have been in prison. And I know that the military want to say that the situation in Burma is normalized now, but it's far from that.
And until she is free, along with all the other political prisoners, that just won't be the case. After all, the military have been playing their games for so many years, and this is just another move on their part to try and gain more legitimacy, as far as I can see. They're not doing it for her human rights or anything of the like.
So until she's freed, then I have to be cautious with my optimism.
(END VIDEO CLIP)
CHURCH: Japan's government is making a new case for its military build-up. It says increased defense spending can boost the country's struggling economy while strengthening security against China, Russia and North Korea. This comes as close ally, the United States, says it stepped in to help support the yen.
President Trump directed the Treasury to buy a large sum of the Japanese currency in what he called a gesture of friendship. It's still unclear how much money was exchanged. The yen had fallen to a 40-year low against the dollar, but has strengthened since the joint intervention.
Analysts say the intervention may only buy time with Japan's economy still facing a number of long-term challenges. Let's bring in Ambassador Kurt Tong, who is Managing Partner at The Asia Group and the former U.S. Ambassador to APEC, the Asia-Pacific Economic Cooperation.
Thank you so much for joining us.
KURT TONG, MANAGING PARTNER, THE ASIA GROUP & FORMER U.S. AMBASSADOR TO APEC: Glad to be here.
CHURCH: So you were the Assistant U.S. Treasury Attache in Tokyo back in 1998, when there was a joint intervention. What are the global market implications for this Japan-U.S. joint currency intervention?
TONG: Well, as I think you know, the joint interventions are much more impactful on the market than unilateral interventions by one country, especially when, in the case of Japan, which was trying desperately to keep the yen from falling further, there's a temptation for markets to just continue to test those unilateral interventions.
But a joint intervention like this one can be more impactful, and so far it's held for a few days.
CHURCH: So what does Japan get out of this exactly, and how do you expect the Japanese stock market will react to this intervention over the next few days?
TONG: Well, the weakness of the yen was really creating inflation problems for the Japanese consumer. It was a sustained weakness, and that was creating consumer sentiment problems that were then slowing down economic growth overall, creating a bit of distress in financial markets in Japan.
So this intervention brings things back into alignment, closer to where most people think that the exchange rate should be over the long term. That'll help ease market pressure and instability and allow the government to focus on other means of promoting growth.
CHURCH: And what's in it for the United States? And are there any negatives attached to this joint intervention for the U.S.?
TONG: Well, for the U.S., I think the U.S. was becoming concerned that Japan, in order to prop up the yen, would sell so many U.S. bonds that it would start to have an impact on U.S. markets, selling those U.S. bonds in order to buy the yen. So having the U.S., which has relatively bottomless supply of dollars to intervene, it makes sense to stabilize U.S. bond markets as well. So that's, I think, the biggest reason for the United States.
In the background, there's also, I think, a sense that if the yen gets too weak, it could increase the size of the trade deficit with Japan by making Japanese goods more competitive. That's a secondary consideration, but I think it was also in the U.S. mind.
In terms of downsides, well, there aren't really that many unless the market tests the United States, and it turns out that the U.S. intervention is insufficient to change market trends, and that would lead to a loss of credibility for the Treasury.
CHURCH: And what's Japan's role in enhancing its defense teamwork with the United States, despite U.S. policy drift?
TONG: Well, overall, the U.S.-Japan relationship is actually in a very good place. The Trump administration started out hard on tariffs, as you know, and Japan was not excluded from that aggressive action.
[02:45:00]
There was concern back last year that the U.S.-Japan relationship would be damaged by that unilateral action. Instead, Japan responded with relative equanimity, also joined an investment initiative with the United States to try and increase Japanese investment in the United States.
That patience, if you will, with the U.S. and with U.S. policy under President Trump has led to President Trump in turn really trusting Japan and seeing it as perhaps its most reliable and important partner overseas.
CHURCH: And how strong is the relationship between President Trump and Prime Minister Takaichi, do you think?
TONG: Well, the President says positive things about the prime minister on a regular basis. Just yesterday, he said a lot about how much he values the partnership with Japan. And based on that, the two countries have done quite a lot to strengthen military cooperation, other aspects of defense.
And perhaps most importantly, the two countries are really working closely together on so-called economic security issues, like trying to increase the resilience of supply chains and lessen the dependency on important inputs from China, given the fact that both governments in Washington and Tokyo tend to distrust Beijing.
CHURCH: Ambassador Kurt Tong, thank you so much for joining us. Appreciate it. TONG: Thank you.
CHURCH: Here in the U.S., Michigan residents will head to the polls for two major primaries on Tuesday. There's an open race for governor, but it's the Democratic Senate primary that's getting the most attention. Frontrunners Dr. Abdul El-Sayed and House Democrat Haley Stevens are locked in a high-stakes race. CNN's Jeff Zeleny shows us both candidates' final preparations.
(BEGIN VIDEOTAPE)
JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT (voice-over): It's Michigan's moment, and a Democratic battle like no other. Congresswoman Haley Stevens and the full weight of the party establishment trying to stop Abdul El-Sayed and a rising progressive movement, as their Senate primary on Tuesday has become a fight for the direction of the Democratic Party.
REP. HALEY STEVENS, (D) SENATE CANDIDATE: I love bringing a little bit of that grit in a little bit of that Michigan way, and maybe just a little bit of that stick it to them.
ABDUL EL-SAYED, (D) SENATE CANDIDATE: Michigan right now is the center of the political universe because our people need and deserve health care. Our people need and deserve a fair pay for a fair day's labor.
ZELENY (voice-over): For the first time, a year of insurgent Democratic wins in deep blue districts will be tested in a statewide marquee battleground. To win a Senate majority, Democrats must hold Michigan and flip four Republican-held seats.
SEN. GARY PETERS, (D-MI): Let's be clear, folks. We will not take back the Senate if we lose Michigan.
ZELENY (voice-over): In the final hours of a bruising contest here, November electability is stoking August anxiety. Reverend Charles Williams II believes Stevens is the strongest choice for a fall campaign, where Democrats have no room for error.
REV. DR. CHARLES WILLIAMS II, SENIOR PASTOR, HISTORIC KING SOLOMON BAPTIST CHURCH: She's the only one in the race that's actually been elected. She worked in the executive branch. And, of course, she has been a legislator. There's nobody else in the race at this time that has that cachet.
ZELENY: How much of this is about convincing people that you can win in November?
El-SAYED: The question of, can I win in November, is a question that voters alone can answer. So, you know, electability is a thing that's best defined after the fact. So, if and when I get elected, then you will know I'm electable.
ZELENY (voice-over): El-Sayed, a doctor and former public health official, whose parents immigrated to the U.S. from Egypt, was born and raised in Michigan. He confronts questions of electability head on.
El-SAYED: It's not about me. You know who they're really talking about?
UNIDENTIFIED MALE: Very few.
El-SAYED: Talking about you. They're saying that you're not open- minded enough, you're not big-hearted enough to elect somebody named Abdul.
ZELENY (voice-over): Stevens was elected to Congress in a 2018 Democratic wave, winning a Republican-held seat in the Detroit suburbs. She's backed by more than $60 million in outside spending on T.V. ads, including from a pro-Israel group, in a race that's been partially defined by the Democratic Party's split on U.S. support for Israel.
STEVENS: There is a reason why Republicans are already spending thousands and thousands of dollars meddling in this primary, trying to maybe get their preferred candidate. Look, when it comes to Michigan, I run through anyone and anything to stand up for us.
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CHURCH: Coming up, pressure is mounting for the head of FIFA as his bid for re-election is facing hurdles after he tried to sell off the World Cup. We'll explain.
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CHURCH: Welcome back, everyone. A Polish swimmer is recovering after swimming for more than 54 hours without rest from Sweden to Poland while raising funds for cancer care. According to CNN affiliate, TVN24, he is the first person to have completed the 99-mile crossing. That's nearly 160 kilometers. This was his fifth attempt. Donations for his fundraiser for the Cancer Fighters Foundation are still pouring in and have surpassed $220,000.
U.S. soccer is firming up its leadership as it tries to capitalize on the momentum from this year's World Cup. Argentina Head Coach, Mauricio Pochettino has agreed to stick with the men's team through the next tournament in 2030. The announcement follows a strong showing on home soil for the Stars and Stripes who made it to the Round of 16 knockout stage. Pochettino says this is an amazing opportunity and looks forward to developing the team's talent over the next four years.
Calls for Gianni Infantino to step aside as FIFA President are getting louder. The football federations of Wales, Serbia and Sweden now say they can no longer support Infantino's bid for re-election and UEFA, the European football governing body, is even threatening to take legal action over his failed plan to sell a stake in World Cup profits to private investors.
World Sports Coy Wire has details.
COY WIRE, CNN SPORTS ANCHOR: The aftershocks from the World Cup just keep getting bigger. Despite FIFA and its President Gianni Infantino scrapping their plans to sell stakes in FIFA competitions to private investors, the backlash from the global football community is not going away.
Just days after UEFA voted unanimously to boycott FIFA competitions over the initial proposal, European football's governing body has now threatened FIFA with legal action and said any potential evidence should not be destroyed. Lawyers have informed FIFA that UEFA is, quote, "actively considering legal action, arbitration and/or regulatory complaints arising out of and in connection with the FIFA Forward Enterprise plan proposed by FIFA and all related matters."
The letter named 18 FIFA execs who it said should retain data, documents and electronic messages as potential evidence.
[02:55:00]
David Bernstein, former English Football Association Chairman, says the pressure needs to stay on for an eventual removal. Listen.
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DAVID BERNSTEIN, FORMER CHAIRMAN, ENGLISH FOOTBALL ASSOCIATION: Oh, it's extremely serious. I don't think he can survive. I mean, I think that UEFA have taken a very strong line and they threatened to, of course, withdraw from the World Cup next time if the proposal was not withdrawn. Well, it has been withdrawn, so that's good.
But I think they should maintain that position pending Infantino's leaving FIFA because the deal and Infantino are now joined together at the hip. And I think they've got to absolutely push maximum at this time now to get him out and move on. Otherwise, football is going to be bitterly divided over the next period.
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WIRE: CNN also understands that the English Football Association is set to write to Infantino to withdraw its support for his re-election, this after Wales became the first nation to do so. FIFA presidential elections are set for March. Back to you.
CHURCH: After a thrilling World Cup run, Cape Verde's team captain and veteran goalkeeper, Vozinha, is taking his talents to Chile. And look at that crowd that welcomed him in Santiago. He arrived over the weekend amid speculation that he was joining the country's largest club, Colo-Colo.
The team officially confirmed Vozinha's signing on Monday. Following his medical inspection, the 40-year-old has locked down a six-month contract with options for a one-year extension. Local media suggest he will make his debut on the pitch later this month.
I want to thank you so much for your company this hour. I'm Rosemary Church. "CNN Newsroom" with Polo Sandoval is next after a short break. Stay with us.
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