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U.S. Treasury Secretary to Unveil Economic D-Day Sanctions on Iran; U.S.-Canada Trade Talks Collapse; Lindsay Clancy Triple Murder Trial Nears its End. Aired 3-4a ET

Aired August 24, 2026 - 03:00   ET

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

[03:00:00]

(COMMERCIAL BREAK)

POLO SANDOVAL, CNN ANCHOR AND CORRESPONDENT: Hey, welcome to our viewers, joining us here in the United States and all around the world. I'm Polo Sandoval, live in New York, and here's what's coming your way here on "CNN Newsroom."

The White House calling it economic D-Day for Iran, we're going to look at what that could mean for the conflict, and we'll also take you live to the Gulf region.

And Trump's trade war, picking back up against Canada out of all countries, the very latest on the rising tensions between two nations that are supposed to be close economic allies.

And the Lindsay Clancy triple murder trial is close to wrapping up. We're going to have legal analysis on this case in a moment.

UNKNOWN (voice-over): Live from New York, this is "CNN Newsroom" with Polo Sandoval.

SANDOVAL: All right, how about we begin in Washington, where the White House is expected to announce new sanctions on Iran in the coming hours. The U.S. Treasury Secretary is vowing an economic D-Day is coming for Iran, at least that's what they're calling it.

In a "Financial Times Sunday" op-ed, Scott Bessent wrote, and I quote, "The world should understand that our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone." Well, the Secretary also says that Iran won't be the only target, but the quote, "economic consequences would impact anyone directly working with Iran."

In the meantime, this recently released footage of Iran's Supreme Leader is prompting more questions about his condition and also his whereabouts. I want to show you that footage.

An Iranian news site posted this short clip of what is believed to be archived footage of Mojtaba Khamenei. He has not been seen in public since being appointed to the role following his father's death. He was killed in the U.S.-Israeli attack that launched the war with Iran in the first place.

And earlier this month, Iranian state media shared another undated video of Khamenei, apparently recorded before the war, Tehran insisting that security considerations are the primary reason for his absence in public.

Let's go live now to CNN's Leila Gharagozlou, who's joining me from Abu Dhabi. So, Leila, as we wait for this announcement out of the White House, any word on how this may or may not impact potential negotiations between the U.S. and Iran?

LEILA GHARAGOZLOU, CNN PRODUCER: Hi, Polo. Yes. So, as you said, Secretary Scott Bessent saying that they're going to announce new sanctions that are going to be the toughest ever in history.

Now, this is something that we've heard time and time again from the administration. It's actually already baked into their policy towards Iran. They put maximum pressure sanctions on Iran after pulling out of the JCPOA.

Now, analysts and experts that I've spoken to have said that it's very unlikely extra economic pressure is going to change the calculus in Iran and going to have them capitulate. They've already seen a lot of economic pressure, both with the port blockade and from the decades prior of having sanctions on them.

Now, Abbas Aragchi, the foreign minister, did speak out about this, saying, we've already seen this movie play out before. Take a listen.

(BEGIN VIDEO CLIP)

ABBAS ARAGCHI, IRANIAN FOREIGN MINISTER (through translator): This is a repetitive scenario, from the crippling sanctions imposed during the Obama administration to the maximum pressure campaign during Mr. Trump's first administration, and now to the latest sanctions. All of these measures have been introduced under different titles, but they represent the same kind of bullying that we have always seen in American policy.

In other words, it's the same movie they keep playing over and over again. We know this movie, so we know how to confront and deal with it.

(END VIDEO CLIP)

GHARAGOZLOU: Now, Abbas Aragchi is correct. They do know how to deal with this, and Iran has been doing this for many decades, where they've built an economy that is resistant to sanctions pressure, which means that it's very unlikely for them to change course when it comes to their strategy on this war or any of their other behavior, right? Sanctions for decades have been used on Iran to try to curb their behavior, whether it's on social issues or on the nuclear issue.

Now, I do think it's really important to understand, though, that these sanctions, this economic lifeline that's going to be cut by the U.S. is going to impact the average person. [03:05:05]

Those are the people who are bearing the brunt of these sanctions, and I've spoken to small business owners and ordinary Iranians, and they are really struggling.

The economy is already in dire straits. People were already struggling to be able to afford basic goods. That has now become a near impossibility.

People are unable to get medication, medical treatment, and I think it's important to look back at this report that the Lancet put out in 2025, saying that sanctions were the leading cause in over 500,000 deaths annually when they looked at them from 1971 to 2021, and the battle casualties are only about 100,000 in comparison. Sanctions impact ordinary people, they lead to deaths, and this is the economic lifeline that's being cut.

SANDOVAL: Yes, Iranian civilians, they certainly should be staying in focus here as this announcement from the White House comes. Leila, thank you so much for that reporting from Abu Dhabi.

And as Leila just mentioned that these economic sanctions are unlikely to change any sort of thinking when it comes to Iran, but as you look at some of these oil numbers right now, oil markets appearing to fall slightly ahead of this so-called economic D-Day against Iran with Brent crude oil, which is that global benchmark, down a little over 1.5 percent with WTI crude oil also falling a little over 2 percent. Of course, investors looking out for any possible shortages in supply amid that ongoing economic uncertainty in the region.

And British Prime Minister Andy Burnham has just arrived in the Ukrainian capital for his first trip abroad. As Prime Minister, while in Kyiv, Mr. Burnham will be chairing his first meeting of the Coalition of the Willing, the group of countries that are working to bolster Ukraine's security and defense. It follows London agreeing to allow defense firm MBDA to release classified information on U.K. components in order to help Ukraine build its own long-range missiles.

And his trip also coincides with Ukraine's Independence Day. It was 35 years ago today that Kyiv voted to break with the Soviet Union, so we'll be following the Prime Minister's visit there as it's now Monday morning in Kyiv.

And the Trump administration is blaming Canada for the collapse of trade talks with the Transportation Secretary accusing Canada of, quote, "taking advantage of the United States." Canada walked away from the negotiations late Friday, as you may recall.

Prime Minister Mark Carney said that the U.S. has introduced last- minute demands that would have harmed his nation's economy. And he's now promising to match the United States' new tariffs on Canadian goods dollar-for-dollar, according to the Prime Minister. And despite the standoff, White House officials say that they expect talks to resume soon.

(BEGIN VIDEO CLIP)

SEAN DUFFY, U.S. TRANSPORTATION SECRETARY: We want fairness for the American worker. And some of our best friends are the worst offenders, that treat us the worst. And the fact that we provide their security for them and they take advantage of us, I think President Trump was the first one to go, you know what, that's not the kind of relationship that friends should have.

(END VIDEO CLIP)

SANDOVAL: And so the President's calling them out. I think you're going to see Mark Carney come to the table very quickly because it's going to be devastating for his country.

All of that is having an impact on U.S. futures, and in fact, take a look at them. They're slightly down across the board here amid these growing concerns of yet another tariff war.

Let's get some analysis now and go to Benjamin Radd, who's a political scientist and senior fellow at the UCLA Berkeley Center for International Relations. He's on the road right now joining us from Singapore.

Thank you so much for calling in. I really appreciate your time.

BENJAMIN RADD, POLITICAL SCIENTIST, AND SENIOR FELLOW, UCLA BERKELEY CENTER FOR INTERNATIONAL RELATIONS: Thank you for having me. Glad to be here.

SANDOVAL: Yes, glad to have you here. So where do you see this escalating trade war going, with Canada's Prime Minister promising to fight back with tariffs of his own?

RADD: So both sides have tremendous incentives to wrap this up. This is not something that I see is going to be long-term and enduring, and really the issue is one of language, not one of actual terms in terms of finances.

You have the United States, you know, inserting language, or at least the President made some comments about the French giving up, excuse me, the Canadians giving up the French culture and language related to Quebec, and you know, cultural matters that go really beyond the financial terms that we see, and then the Canadians have taken an issue with some of the automotive provisions that were in the agreement. At the end of the day, these are two countries that are really bound not just by border, but by massive co-dependence on trade, on imports, on exports, and so it's just a matter of time before they work this through.

SANDOVAL: Yes, certainly consumers in both countries are listening to you and hoping that that will in fact be a short-term unraveling that we experienced on Friday. So what are, in your view, some of the off- ramp options?

RADD: Well, at this point, from the Canadian standpoint, is one of the legality of what the president can do. [03:10:01]

We saw at a Supreme Court ruling earlier this year, Chief Justice Roberts in his majority opinion basically saying that the president's abilities to institute these sweeping tariffs are limited by something that's called the major questions doctrine, that's something that Congress has the power to do and that is not explicitly delegated to the executive branch.

So President Trump's options here might be limited, and I think Canadians understand the legal implications of what he's trying to do, and that would give an off-ramp to really go back to the table and work through the rhetoric and not the numbers, because again, it's really the rhetoric, the terms, and not the numbers themselves. And then the other issue is this language about Canada being the 51st state or imposing conditions about the use of French language and culture. I think these are things that can easily be worked through and pushed aside for the goals of reaching a broader deal.

SANDOVAL: So subject to these negotiations, subject to any potential court action that you just went over, what do consumers on both sides of the border, what do they need to know right now of any possible immediate impacts, especially if a deal would not be reached?

RADD: Well, the other issue is that the USMCA, the deal essentially, the deal that followed up NAFTA that bans Canada, the United States, and Mexico in a trade agreement, it's in a suspended status right now. And so the United States and Canada have a framework to negotiate on, and I think the impact on consumers in the short term might be minimal, because I think, I maintain that both sides have an incentive to work this through, though I don't want to downplay the significance of what we're talking about here.

The amount of, I think it's $28 to $30 billion are the numbers that are tossed around with regards to what's at stake economically in trade between the two sides. So matters of steel, of lumber, of certain raw goods that are used in industrial and manufacturing, those can be impacted, but whether or not these manufacturing companies and others impose those costs further down the retail chain until it reaches consumers remains to be seen.

SANDOVAL: There are clearly impacts for people on both sides of the border, but I'm also curious, Benjamin, about how this impacts other nations that do business with the United States. I mean, they are clearly watching how this all turns out. So if this actually works on Canada's behalf, to their benefit, what is next for other nations, perhaps other European nations, or Mexico, these countries that do trade with the United States? Do you think they'll look at it and perhaps stand up against any future threats from Trump?

RADD: Well, I think a lot of that goes back to the Supreme Court's decision in learning resources back in April, and again, where the court said there is a limit to the President's unilateral ability under his Article 2 powers to impose these types of trade punishments, if you will, to these tariffs. And so what these countries are going to see is that, number one, is

there an underlying framework for trade? We have that here with the U.S. and Canada, in the USMCA. If you look at Japan, if you look at the E.U., the quibble was about really price, not so much about terms. And in those instances, the Japanese and the Europeans were willing to pay a nominal price to avoid a further trade war.

In this instance, we're seeing Canada saying, look, there's already a benchmark, a framework for this, and it's now just a matter of agreeing on the language, not so much on the financial terms. So I don't think there's too much of a parallel to draw, except for the fact that the legality of the President's abilities to retaliate will be checked by the courts, and if not by the courts, then by Congress.

SANDOVAL: Benjamin Radd, really appreciate you checking in with us and giving us your analysis from Singapore. Safe travels back to California.

RADD: Thank you.

SANDOVAL; All right, now to a wildfire that's uncontained and growing quickly near Reno, Nevada. It has now prompted widespread evacuations. The Hawk Fire, as it's called, has now grown to more than 15,000 acres.

Already nearly 90,000 people have been told to leave their homes or are prepared to leave, and all this as crews try to get these flames under control. Reno's fire chief saying that wind gusts and unusually high nighttime temperatures are all making this fire behave erratically and very difficult for these firefighters to contain.

Forecasters do believe that these windy conditions could get even worse later this afternoon. Officials are saying that the fire appears to have been caused by human activity, but there's no indication that it was intentionally set.

Now to Hawaii, which is being hit with even more rainfall after being lashed by Hurricane Lala just last week. The National Hurricane Center says a tropical depression, Moke, is now passing just south of the island. The Big Island and Maui have already seen some rainfall, at least as of Sunday afternoon, but parts of the islands could see anywhere from three to six inches going into Monday.

And there are also those winds, those maximum sustained winds that are now near 35 miles per hour with even stronger gusts, and the storm is expected to continue wreaking havoc as it continues to move westward over the next few days.

[03:15:02]

But still the Hurricane Center is warning that downpours could cause some life-threatening flooding and mudslides in places that were flooded by Lala on the Big Island, so residents certainly being encouraged to monitor those conditions.

Well still ahead on "CNN Newsroom," we'll get some expert legal insights into the trial of Massachusetts mother Lindsay Clancy, who was admitted to killing her children. And all this as prosecution now preparing to present its rebuttal to her claims of post-partum psychosis.

And also a teacher is appealing to the United States government to free her husband, who's been in ICE custody for over half a year. The story and much more still to come. You're watching CNN.

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SANDOVAL: In Massachusetts, the triple murder trial of Lindsay Clancy is set to resume today, Monday, when prosecutors will present their rebuttal witnesses. Clancy's defense was heavily focusing on her mental health and the treatment she received leading up to the killings of her three children.

Her attorneys are arguing that she was suffering from post-partum psychosis. Prosecutors say that she acted deliberately and with sound mind. Clancy could face life in prison if convicted.

[03:20:06]

For more on all of this, I want to go now to Neama Rahmani, he's a former federal prosecutor and also the president of West Coast Trial Lawyers. Neama, thank you so much for joining us.

NEAMA RAHMANI, FORMER FEDERAL PROSECUTOR, AND PRESIDENT, WEST COAST TRIAL LAWYERS: Thanks for having me, Polo. As always, big day for both the prosecution and the defense in Massachusetts.

SANDOVAL: Absolutely. And I really want to get your thoughts on the prosecution. But first, though, let me play for you and our viewers just some of the testimony that jurors will soon be considering.

What you're about to hear is the defense's last witness, psychiatrist Philip Bresnik. And listen to what he told jurors about what he believed was Clancy's state of mind the day of the killings.

(BEGIN VIDEO CLIP)

DR. PHILLIP BRESNIK, FORENSIC PSYCHIATRIST (on the phone): She had what is known as a delusion of influence. That is, not only did she hear a command, but she felt that her body was taken over by an external force where she was in a dream state and did not have control of her own body. It was almost like she was a puppet and someone else was pulling the strings.

(END VIDEO CLIP)

SANDOVAL: That she had no control of her body the day of those murderers. So what do you make of that? And just how compelling do you expect the jury to find that doctor's testimony?

RAHMANI: It's very strong and compelling, Polo, and this is why. If you're the defense or the prosecution, for that matter, you want to start strong and you want to end strong. And the defense started with Lindsay Clancy's mother, a very powerful witness, followed by her mother-in-law, Patrick's mother, the ex- husband. And then they ended very strong with the psychiatrist, and this is why it's relevant. Under Massachusetts law, one can be found not criminally responsible, which is the equivalent of insane in most states, if either one of two things are true.

They don't understand the wrongfulness of their actions, and that's certainly possible because the two previous witnesses, including the hospital chaplain and the psychologist, testified that Clancy was hearing voices telling her to kill her children so they could be safe.

But there's a second way to get there. If you're unable to conform your actions to the law, basically you don't have control. And that's precisely what this defense expert said.

So you've really covered both bases of legal insanity or criminal responsibility there in Massachusetts. So, really, it's going to be very difficult for the prosecution to get 12 out of 12 jurors to disagree here.

SANDOVAL: On that note, Neama, the state has maintained that Clancy acted intentionally and had also planned her children's killings. What's your assessment of the prosecution's performance so far in their case?

RAHMANI: At the beginning of this case, I thought there was very little chance that Clancy would be acquitted or the jury would hang, because these acts were so heinous. And they had evidence of premeditation in the weeks and days leading up to the murders.

But I think the defense has really covered a lot of ground in this past week. And you could tell by the fact that they've really shortened their presentation. I do think the defense thinks they're ahead.

And, of course, social media is no barometer. But if you are really following this case, and this is probably the biggest case in social media maybe since Johnny Depp versus Amber Heard, there are really strong differing opinions on both sides. So I do think the defense has scored enough points for at least the casual viewer who was watching.

And those people that are watching this case gavel to gavel every single day, that there's enough division here that I think the defense has created reasonable doubt.

SANDOVAL: We're seeing some videos you were speaking to, Neama, of some of these supporters wearing pink, since Clancy supporters wearing pink outside of the courthouse. We've seen them throughout much of the presentation of testimony.

Just culturally, how has this case highlighted the issue of maternal mental health? We saw in her testimony that Clancy herself had this desire to be able to seek treatment to address that.

RAHMANI: Well, there's no doubt that this case has raised even more awareness. I think one reason this case is better than your typical insanity case is the fact that you have this well-documented history of mental illness, 12 different prescription medications, some of them anti-psychotic medications, her voluntarily checking herself into an inpatient facility, desperately begging friends, family members for help, don't typically have that.

And I think what you're seeing, the support outside, all those women wearing pink, some of them actually had a Karen Reid case that ended up in essentially an acquittal, not once but twice. When you have this much support for an accused murderer, in this case, an admitted murderer, you have to be thinking, if you're the Commonwealth, if you're the prosecution here, that you're potentially in a world of hurt.

[03:25:00]

And one thing you're seeing, this support, and we're seeing a lot of women, we're really seeing a clear divide here, there's a lot of women, especially mothers who have suffered through this, that are really pro-Lindsay Clancy, and then some other types who haven't given birth to children, and many men who think that she's guilty and she should spend the rest of her life in state prison.

So the divide is fascinating, and the reason I'm bringing that up is, the jury, we don't know what 12 are going to deliberate, but the 18 total, including alternates, they consist of 12 women and 6 men. So that ratio, again, broad generalization, bodes well for the defense.

SANDOVAL: Without a doubt. Long after this verdict is read, this will certainly leave a lasting imprint on society in general.

Neama Rahmani, I really appreciate you helping us just break all this down. We know you'll be watching in the days ahead. Thank you so much for your time.

RAHMANI: Thanks, Polo. Talk soon.

SANDOVAL: Talk soon.

All right, now to the case of a Texas teacher who's pleading for the release of her Venezuelan husband. He's been detained by ICE for more than six months now. CNN's Carolina Peguero with her story.

(BEGIN VIDEOTAPE)

HEATHER ALAMBARRIO, HUSBAND DETAINED BY ICE: Neither one of us know when we're going to see each other again, and I don't know when I'll get the call to bring him home with me.

CAROLINA PEGUERO, CNN CORRESPONDENT (voice-over): Heather Alambarrio, a teacher and U.S. citizen, is moving mountains, hoping to be reunited with the love of her life, her husband, Jose Rafael Alambarrio Cardenas. He has been held in an ICE detention center for more than six months.

ALAMBARRIO: My husband is kept in a place like that, such a beautiful, kind person, and there's thousands of Rafael's, hundreds of thousands across our country who are in a similar situation, and the weight of that falls on me as I turn to walk away from that place.

PEGUERO (voice-over): Heather and Rafael met during salsa lessons, and months later, they married in 2025 and filed a spousal petition with immigration authorities. They attended their routine ICE appointments in Dallas, Texas, until the last one turned into their worst nightmare, where he was detained.

ALAMBARRIO: And I waited, and after about 45 minutes, the door opened, and our attorney walked out, and she looked at me, and she just shook her head.

PEGUERO (voice-over): CNN confirmed through court documents in Rafael's attorney that he doesn't have a criminal record. He entered the United States from Venezuela in 2023, and upon arrival, applied for a political asylum. He passed his credible fear interview, but that case is still under review by the federal government.

The Department of Homeland Security says Alambarrio-Cardenas is expected to remain in ICE custody while his immigration proceedings are resolved.

ALAMBARRIO: We had submitted all of our documents and even had our interview, so we felt like if anyone was okay, Rafael would be okay.

PEGUERO (voice-over): After spending several months in the Peerland Detention Center in Texas, Rafael was transferred to the Adams County Correctional Center in the state of Mississippi. We spoke to him through a video call.

JOSE RAFAEL ALAMBARRIO-CARDENAS, VENEZUELAN NATIONAL DETAINED BY ICE (through translator): To be honest, I feel like I'm back in my country because the way things are being handled are the same way like back home.

PEGUERO (voice-over): Despite the distance and missing their first wedding anniversary, Rafael shares the love he has for his wife.

ALAMBARRIO-CARDENAS (through translator): The love of an immigrant, it's not easy, but I never thought it would be this difficult. I love Heather more than anything, and she has showed me the same, and that's what keeps me strong here.

PEGUERO (voice-over): This is not the first case of immigrants married to U.S. citizens being detained by ICE, which is why Heather wants to send this message.

ALAMBARRIO: Our country is a country that is great because of our Constitution and the Bill of Rights and checks and balances, and we need the balances and checks to be working for us.

PEGUERO (voice-over): Carolina Peguero, CNN, Dallas.

(END VIDEOTAPE) SANDOVAL: And still on the way, the Iranian regime focused on the conflict. While that was happening, enforcement of hijabs had eased. Well now, hardliners are cracking down on women's dress codes again. We'll explain.

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[03:30:00]

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SANDOVAL: Welcome back, I'm Polo Sandoval in New York, and these are today's top stories.

Nearly 90,000 people around Reno, Nevada, are being told to evacuate or prepare to leave, and this as the Hawk Wildfire rages out of control. Forecasters say that high temperatures and windy conditions could get even worse later today, making efforts to contain the fire even more difficult.

British Prime Minister Andy Burnham is in Kyiv, marking Ukraine's Independence Day during his first trip abroad since taking office. Mr. Burnham will be sitting down with President Volodymyr Zelenskyy. Later, they'll be co-chairing talks with the Coalition of the Willing, aimed at bolstering support for Ukraine's security and defense.

The U.S. is expected to announce new sanctions against Iran later today. Treasury Secretary Scott Bessent warned of an economic D-Day that is coming for Iran. Bessent also put Iran's allies on notice and vowed to impose tremendous economic consequences on countries that do business with Iran.

Meanwhile, hardliners in Iran are once again enforcing mandatory dress codes for women. But many women are choosing not to wear their headscarves. CNN's Jomana Karadsheh has the details.

(BEGIN VIDEOTAPE)

JOMANA KARADSHEH, CNN CORRESPONDENT: This woman is being publicly shamed by another woman for showing her bare legs in Iran. Eventually, officers arrive and make her put on pants.

This scene is being played out in cities across the country. The focus seems to be turning back to how women are allowed to dress.

At the height of the war, women without headscarves were even seen at pro-government gatherings. The regime seemed to have bigger priorities, but now hardliners are pushing the hijab back on the agenda. Cafes, restaurants and shops are being shut down for failing to enforce mandatory dress codes.

Hardline clerics are demanding tougher enforcement. This cleric speaking directly to President Massoud Pazeshkian.

UNKNOWN (translated): To what extent do they have to take off their clothes for it to be a red line, so you say "ah, this must not be done anymore."

KARADSHEH: But there's a problem for the regime. Iranian women are not backing down.

[03:35:04]

Four years ago, the death of Mahsa Jina Amini in custody after being detained by the so-called morality police ignited the Women, Life, Freedom protest. The uprising was brutally suppressed, but widespread acts of defiance survived.

Today, women walk through Iranian cities without headscarves and ride motorcycles through Tehran, Shiraz and Isfahan as the war with the U.S. seems to stall and oil confrontation is bubbling up.

(END VIDEOTAPE)

SANDOVAL: That's the explosion that whipped through a building in central Gaza. Residents there said an Israeli strike hit the property after its owners were warned to leave the area.

Palestinian health officials say that at least two people, including a young boy, were killed in two separate airstrikes in Gaza on Sunday. One Palestinian man describing the ongoing desperation in this territory.

(BEGIN VIDEO CLIP)

UNKNOWN (through translator): There is no ceasefire. There is nothing. Our lives are destroyed, our youth are destroyed.

What can we do? We want solutions. We want to live in peace.

This does not make sense. It's true these things are happening to other people.

But I am also human. I see these things. People torn to pieces.

We die. Our morale is destroyed.

(END VIDEO CLIP)

SANDOVAL: And we'll be right back with more.

(COMMERCIAL BREAK)

SANDOVAL: Welcome back. You're up to speed on the market. And here are your business headlines.

A U.S. Federal Reserve official warning that the central bank is unlikely to reach its two percent inflation target until the war with Iran ends.

[03:40:03]

Consumer prices in the U.S. have been climbing since the war started in February. Despite the dour outlook, the Minneapolis Fed president says that the bank is absolutely committed to reaching its two percent goal.

U.S. gas prices are up more than 37 percent since the U.S. and Israel launched its war with Iran. According to the latest data from AAA, the national average for a gallon of gas is now $4.10.

But gas isn't the only thing costing Americans more since the war started. New data now revealing that energy prices are also up nearly 15 percent when you compare it to a year ago.

The valuation of fast fashion retailer Shein dropping some 70 percent from its peak four years ago. The company is now valued at about $27 billion. It hopes to raise about $1.7 billion with its Hong Kong IPO, which is now underway, Shein is expected to start trading on September 1.

Norwegian football star Erling Haaland is expected to start the new soccer season with this new look. Check it out.

The Manchester City striker chopping off his famous long locks in favor of this buzz cut. Looks pretty good. He revealed this transformation in a now-viral social media post, his long blonde hair made him one of the most recognizable players during Norway's run at the 2026 World Cup.

Plus, he's a pretty good player.

We'll take a quick break. For our viewers in North America, I'll have more of your news in a moment. For our international viewers, it's "World Sport", that's next.

(COMMERCIAL BREAK)

[03:45:00]

(COMMERCIAL BREAK)

SANDOVAL: And welcome back to our viewers here in the United States and in Canada, I'm Polo Sandoval in New York. Back to your headlines now.

CNN is learning about a private meeting between President Trump's son- in-law and the Democratic leader of the U.S. House of Representatives. The source is telling CNN that Jared Kushner and Hakeem Jeffries met in New York several weeks ago. We are told that they discussed ways for the White House and Democrats to collaborate on key issues like immigration, housing availability, and the cost of living.

And this meeting comes as Democrats eye the possibility of winning a House majority in the upcoming midterms. CNN's Julia Benbrook is in Washington with more.

(BEGIN VIDEOTAPE)

JULIA BENBROOK, CNN CORRESPONDENT: We are learning that President Donald Trump's son-in-law and a close advisor, Jared Kushner, recently met with the top Democrat in the House of Representatives, Hakeem Jeffries. During this meeting that was first reported by the "New York Times," the two discussed potential ways for the White House and Democrats to work together in the future. Key areas of discussion were immigration, housing, and the overall cost of living.

In a statement, Jeffries spoke to the relationship with the administration, writing in part, "the American people want bold change, and that's what House Democrats will deliver." Adding, "in every conversation that we have with the Trump administration, we will continue to make it explicitly clear that the affordability crisis is not a hoax and nothing short of transformational policy change is acceptable."

A source familiar with the matter tells me that during this sit-down, Kushner suggested that at some point, Jeffries meet with White House Chief of Staff Susie Wiles, who of course plays a key role in much of what takes place here at the White House. With just 10 weeks now until the midterms, the timing of this meeting is drawing some attention as some are wondering if it is a bit of an acknowledgment that the next two years on Capitol Hill could look a little bit different.

House Speaker Mike Johnson is pushing back against that assumption. He says that he remains confident that Republicans will keep control of that chamber. Take a listen.

REP. MIKE JOHNSON (R-LA), SPEAKER OF THE HOUSE OF REPRESENTATIVES: I know Jared is a smart guy and he hedges bets, but I'm telling you what, you better not bet against the House Republicans. I know Jared has interests and lots of other things going on. He's not really directly involved in the admin, at least in the day-to-day in the White House.

BENBROOK: Right now, Republicans hold razor-thin majorities in both the House and the Senate. We have reached out to the White House for more details on all of this.

Julia Benbrook, CNN, Washington.

(END VIDEOTAPE)

SANDOVAL: CNN's senior political analyst Ron Brownstein spoke with my colleague Will Ripley earlier about the Democrats' efforts to win over those disillusioned Trump voters, and here's what they discussed.

(BEGIN VIDEO CLIP)

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST, AND OPINION COLUMNIST, BLOOMBERG: I believe that the core question of the '26 election has really already coalesced or revealed itself, and that is, can Republicans win significantly more voters who disapprove of Trump than they did during his first term?

Trump's approval rating now, Will, is lower than it was in 2018. It's lower than Biden's was in '22, it's lower than Barack Obama in 2010, George W. Bush in 2006, Bill Clinton in 1994. All of those presidents were net negative in their approval, and it

led to a really bad election for their party in those years that I mentioned. Trump is 8 to 10 points below where all of them were at this point, but Democrats have not yet consolidated the usual share of voters who disapprove of the President.

What we saw in Trump's first term is that 90 percent of voters in 2018 and 2020 roughly who disapproved of his performance voted Democrat for the House. Every Democratic Senate candidate, incumbent, or challenger during his first term won at least 89 percent of people who disapproved of Trump according to the exit polls, except the one running of Susan Collins in 2020. Democrats aren't there yet.

So the question is, is it because the Democratic image is weaker than it was during his first term, or is there just simply a polling lag?

I tend to believe that the fundamental things apply, as Bogart said in Casablanca, and that ultimately the Republicans are going to lose somewhere north of 85 percent of people who disapprove of Trump. Democrats aren't there yet, and the question is whether it's kind of a structural problem because their own favorability is weaker than it was in 2018, or is it just a seasonal problem because it's summer and when we get to fall, we're going to see it.

[03:50:06]

And that really is, I think, going to be one of the crucial pivot points of this election.

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SANDOVAL: Staying in politics, U.S. President Donald Trump says that his endorsements are, quote, "stronger than ever," and this despite a list of recent losses. Republican primary voters have rejected 10 Trump-endorsed candidates for statewide office or for Congress in primaries this year, a CNN analysis finding that's equal to the number who lost in 2018, 2020, and 2024 as primaries combined.

In a social media post, President Trump said in some of those races it was almost impossible for his endorsed candidates to win, but he said that he felt obligated to endorse them because they were, quote, "good people."

And the first ever IndyCar race in the U.S. Capitol is now in the books, President Trump attending the Freedom 250 Grand Prix on Sunday along with the First Lady. Thousands of fans were there watching Kyle Kirkwood take on that victory, and the President was heavily involved in making this race a reality. He even toured the track in his presidential motorcade.

The President signed an executive order in January that bypassed some of the bureaucratic hurdles for the event, one of several this summer commemorating the nation's 250th birthday. And some of the fans spoke with our Brian Todd about what they thought of this race.

(BEGIN VIDEO CLIP) BRIAN TODD, CNN CORRESPONDENT: Chris, is a -- you've been to several races, you said. Okay.

Liz, you have not. Okay.

Got to get your impression first time. How do you like it?

LIZ, SPECTATOR: This I saw the warm up and it was so cool. I didn't think I was kind of like, oh, they're just cars running. But the speed they're going. It was so freaking cool and I got goose bumps and I got all shaky, it was really cool.

TODD: And now you're a veteran, Chris. You've been to some of these races. What do you think? What stands out to you about this particular one?

CHRIS, VETERAN INDYCAR FAN: It's a road course and that's always fun. You know, a road course on my own home roads, I definitely love that. And just having a point of reference for how fast they're going on these city streets is insane.

(END VIDEO CLIP)

SANDOVAL: We all know artificial intelligence seems to be exploding in nearly every part of our daily lives. Well, that now includes how some people are practicing their faith.

A San Francisco Bay Area pastor has launched an A.I. version of his ministry. It brings a high-tech version of him, his voice, and also his teachings to the digital realm. And his parishioners can then join in from the comforts of their own homes whenever they seek religious guidance.

Here's CNN's Nick Watt with more.

(BEGIN VIDEOTAPE)

NICK WATT, CNN NATIONAL CORRESPONDENT (voice-over): Passion, emotion, love. Black Americans are world leaders at making worship very human.

WATT: My church when I was a kid was like this. I might still be religious.

WATT (voice-over): Now Pastor Justin Lester is pioneering the inhuman. He's cloned his mind, birthed an A.I. digital doppelganger, which ministers to his flock when the real man cannot.

UNKNOWN: I can make an appointment with the pastor, but I can ask this question right now.

UNKNOWN: It's amazing. You have to try it sometime.

WATT: I will.

REV. JUSTIN R. LESTER, FRIENDSHIP MINISTRY BAPTIST CHURCH (through A.I.): I did. WATT: I'm feeling a little lonely today.

LESTER (through A.I.): It's not good for man to be alone. That's scripture. That's truth.

And it applies to you right now. Loneliness isn't weakness. It's a signal that you were made for connection.

So here's what I want you to do today. Reach out to one person.

UNKNOWN: I like to use it when one, he's away or two, there's a question I'm too embarrassed to ask him because I feel like I should know the answer to it.

UNKNOWN: Some things you may be hesitant to say out loud.

WATT: Yes.

WATT (voice-over): So how does it work?

LESTER: I connected on YouTube, my TikTok, my Instagram, and everything I've ever written. So all the way back to every sermon I've ever preached. Books, all of that are in there.

WATT: Do you obviously evolve as a human and as a preacher and a pastor? Does it evolve with you?

LESTER: Every single day it updates.

WATT: You said in your sermon Sunday to give other people credit. What did you mean?

LESTER (through A.I.): Nick, I appreciate you pressing me on that. Let me be real with you. I was talking about giving credit to the people around you.

LESTER: It creeps me out because like somebody's literally talked to it before and was like, I literally thought you had a conversation with me. So I don't have the video part on.

WATT: Okay.

LESTER: Because that was weird. But --

WATT: Okay. So if the tech there catches up, will you do so I can look at you?

LESTER: Absolutely. I'll do it because I'm curious about it. I'm an innovator.

UNKNOWN: I'm not going to lie. I would live for that. I live for that.

WATT (voice-over): He's already launched PastorGPT, which helps other pastors write sermons. And his little church offers coding classes and uses A.I. to handle the earthly and mundane.

LESTER: Like I went to school to preach the gospel, to teach the gospel, care for God's people. I did not go to school to, you know.

[03:55:01]

WATT: So A.I. is giving you more time to be human.

LESTER: Absolutely. A.I., man, gives me more time to be a better father, be a better husband, to be a better pastor. Hospital visits don't have to be five minutes, they can be 20.

WATT (voice-over): But can A.I. do this?

WATT: And when I watch you preach, you know, I see and I feel humanity. I see the frailty. I feel all these human things. Can you really bottle that into an algorithm?

LESTER: Oh, no. So A.I. cannot feel.

WATT: You're also not like creating something that's going to replace you.

LESTER: No, I think I'm pretty cool. No.

WATT: We're not going to be replacing the pastor.

UNKNOWN: No.

WATT: We're not going to be having weird virtual churches with no humans.

UNKNOWN: No, not at all. No, I think what we see is an expansion of the church happening.

WATT: Okay.

UNKNOWN: An expansion of love, an expansion of humanity.

WATT: If you try and make the A.I. twin talk about something random, weird, someone tried Swedish politics, it will not engage. The bot will only talk about things that the real man himself knows about.

Also, if you bring up something very serious, homicide, suicide, violence, abuse, the bot will say, that's too much for me. Call the pastor.

As the poetic pastor himself says, rivers are great because of the banks. A.I. is great with guardrails. Maybe that's a lesson for the wider world as well.

Back to you.

(END VIDEOTAPE)

SANDOVAL: And a lesson that A.I. religion is here.

Thank you so much for joining me this hour, I'm Polo Sandoval in New York. I'll be right back with you in a moment with more of your headlines here on "CNN Newsroom."

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