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Early Start with Rahel Solomon

April Report On Consumer Sentiment Due Out Today; Journalist Who Exposed "Signalgate" To Interview Trump; Artist Crafts Team Logos From Old Furniture For 2025 NFL Draft. Aired 5:30-6a ET

Aired April 25, 2025 - 05:30   ET

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

[05:30:00]

RAHEL SOLOMON, CNN ANCHOR: What do you see in the Bank of America data about how people are spending?

DAVID TINSLEY, SENIOR ECONOMIST, BANK OF AMERICA INSTITUTE: Yeah. So in the Bank of America data -- the Bank of America Institute data, we look at the 69 million customers of the bank and look at their spending trends.

What we saw is that March was good. I think everybody knows that March spending was pretty solid. But even in the first three weeks of April -- so through to April 19 spending was pretty solid. In the last week of that period -- week through to April 19 -- I think spending on cars was up 3.1 percent year-over-year.

SOLOMON: Hmm. So cars is an interesting example because you kind of give us a sense of what you're seeing, but then there's sort of the why of it all, right? So are we seeing people sort of pull forward their spending because they're trying to get in front of tariffs? And are there areas of weakness perhaps in discretionary goods where people are pulling back maybe because of concerns about the economy or job security? What can you tell us about the why of it all?

TINSLEY: Yeah, that's a great question.

So what we -- I think we're seeing is that there is pull forward. So essentially what people are doing is -- who are worried about price rises probably due to tariffs coming down the track -- they were buying consumer durables. In other words, electronics, furniture -- particularly cars, actually -- autos. Very strong over the back end of March and the first couple of weeks of April. No real signs of weakness, I wouldn't say, in the data.

I mean, how people feel doesn't always correlate closely with how people spend.

SOLOMON: Yeah.

TINSLEY: People haven't felt great for a couple of years, partly because of the inflation that you were talking about in your story, but they have still been spending. But, of course, this pull forward does beg the question at some point they'll stop pulling forward. There won't be anything left to buy ahead.

SOLOMON: Yeah.

TINSLEY: And then where will spending be? It still looks OK -- the momentum -- but we have to watch very closely I think for that.

SOLOMON: Yeah. It's such a fascinating point about the difference between how people feel versus what they actually do. Because for years people felt really crummy about the economy because of inflation, but the recession never appeared. People kept spending.

TINSLEY: Right, yeah.

SOLOMON: And so it was just such an interesting, sort of, fascinating thing to watch.

David, what about the -- what about the airlines? I mean, what about with travel -- some of the airlines? The U.S. airlines, at least, reported earnings this week and not only did they pull their guidance for the year saying there's too much uncertainty, but we've also heard warnings about falling domestic demand.

Could that be a canary in the coal mine?

TINSLEY: Yeah, this is a good point. You know, air travel data -- and we released a report on this a few weeks back -- it does look pretty soft. Airlines, I think particularly on the lower consumer, have been pulling back on travel spending to date at least. So, of course, that's a big ticket item, you know. It's a big outlay for a family.

SOLOMON: Yeah.

TINSLEY: That kind of yearly vacation. So that could be a sign of softening to come.

And like I say, the data looks OK at the moment. And obviously the labor market is showing a remarkable ability to --

SOLOMON: Yeah.

TINSLEY: -- keep its -- keep in there. So we'll have to watch very carefully.

SOLOMON: Yeah -- no. That's a -- that's a great point.

What about when you look across income groups? Is it broad-based spending or -- because at times in the last few years we've seen spending at the top -- sort of masked weakness among some of the other groups, and that can obviously distort things.

What about across income spectrums?

TINSLEY: Yeah, so a similar sort of story now. Higher income consumers doing better. Spending growth higher than lower income consumers. The lower income consumers -- they're pressured by some of those inflationary items you were talking about -- you know, eggs, et cetera -- a bit more than perhaps the higher income consumers.

People are watching the higher income consumers for signs that they may pull back --

SOLOMON: Yeah.

TINSLEY: -- because of what's going on on the equity markets.

SOLOMON: Right.

TINSLEY: So these wealth effects that economists talk about. They're not really in the data yet but again, something to really closely watch going forward, I think.

SOLOMON: Yeah, something to -- maybe one way to think about wealth effects is if you suddenly look at your 401k or your portfolio and you feel 20 percent poorer or 20 percent less of, well maybe you don't take that trip because you at least feel less wealthy.

David, last question here. Uncertainty obviously seems to be the buzz word of the moment for valid reasons. With the soft data flashing the warning signs where are you going to be looking first at the hard data to see any cracks with the U.S. consumer?

TINSLEY: Well, I think we'll keep looking at our hard data very closely -- credit and debit card data. That gives us a very good high frequency read on the consumer.

But I think the other thing is hiring. Are firms going to pull back on hiring because of this uncertainty? And then that will feed through to a negative impact on the consumer if that does happen.

SOLOMON: Yeah. To that end we're going to get the U.S. jobs report next Friday. We get JOLTS data next week. We have unemployment data, of course, on Thursday. So a lot of sort of news on the employment front coming next week here --

[05:35:05]

TINSLEY: Right.

SOLOMON: -- in the U.S.

David Tinsley in London. Appreciate you being here with me. Thank you. Have a great weekend.

TINSLEY: Thank you.

SOLOMON: Yep.

Well, the man accused of murdering the UnitedHealthcare CEO is expected in court in the coming hours. We'll have the details there.

And disgraced former Congressman George Santos will be sentenced today. How much prison time he's facing straight ahead.

(COMMERCIAL)

[05:40:05]

SOLOMON: Welcome back.

Ties between Pakistan and India are cratering after the deadly attack in disputed Kashmir that left 26 tourists on dead. On Thursday Pakistan suspended trade with India, closed its airspace, canceled visas for Indian nationals, and expelled Indian diplomats. The actions are a retaliation for similar measures from India the day before. New Delhi also suspended a crucial water sharing treaty for the first time and shut a key border crossing.

India says that the measures are in response to Pakistan's alleged support for "cross-border terrorism."

India's prime minister, on Thursday, vowing to pursue the attackers "to the ends of the earth."

(BEGIN VIDEO CLIP)

NARENDRA MODI, INDIAN PRIME MINISTER: Today from the soil of Bihar I say to the whole world India will identify, track, and punish every terrorist and their backers.

(END VIDEO CLIP)

SOLOMON: Now, on Thursday, Kashmir police named three suspects allegedly involved in the terror attack but did not say how the men were identified. Two of three are Pakistani nationals. Pakistan denies any involvement.

Here at home Luigi Mangione is scheduled to appear in federal court today. He is expected to enter a plea on charges in the December murder of UnitedHealthcare CEO. The federal grand jury has indicted Mangione on four federal charges. The most serious one, murder through use of a firearm, could land him a death sentence or life in prison. The Justice Department says that it does plan to seek the death penalty.

Meanwhile, there has been an outpouring of support for Mangione from people who say they're frustrated and angry with the U.S. for-profit health care system.

Music mogul Sean "Diddy" Combs is expected in a New York federal court in the coming hours for a pretrial hearing in his high-profile case. Combs has pleaded not guilty to charges of sex trafficking, transportation to engage in prostitution, and racketeering and conspiracy.

Now, some of his children have attended hearings to support their father. You see them here.

Prosecutors accuse Combs of committing the crimes over two decades. Authorities allege that he recorded some of the sex acts with women who were often drugged. And they say that he controlled is victims by threatening violence or promising them money or help with their careers.

Jury selection is expected to begin May 5.

And disgraced former congressman George Santos will be sentenced today. Santos pleaded guilty last year to aggravated identity theft and wire fraud charges. The charges stem from fraudulent activity during his midterm campaign in 2022, including misusing campaign funds. Prosecutors are seeking a sentence of more than seven years in prison. Santos also owes more than $370,000 restitution as part of his plea deal.

President Trump has agreed to be interviewed by the journalist who revealed that classified military information that was discussed in a Signal group chat. Why the president says he's doing the interview straight ahead.

Plus, the Trump administration explains how it plans to carry out deportations under a controversial 18th century law. A court filing reveals the legal process for the Alien Enemies Act.

Stay with us. We'll be right back.

(COMMERCIAL)

[05:47:53]

SOLOMON: Welcome back. I'm Rahel Solomon, and here are some of the stories we are watching for you today.

U.S. envoy Steve Witkoff is expected in Moscow today for possible talks with Russian leader Vladimir Putin. This comes as Ukraine reports new Russian strikes that killed at least eight people across the country this morning. On Thursday, Russian attacks on Kyiv left at least 12 people dead and 90 others wounded.

The Vatican is reporting another day of huge crowds ahead of the pope's funeral tomorrow. We are told that nearly 130,000 mourners have already paid their respects as Pope Francis lies in state at St. Peter's Basilica. The Vatican says that 50 heads of state and 10 reigning monarchs will attend his funeral.

And import agencies in Shenzhen say that China appears to have quietly rolled back some retaliatory tariffs on U.S. imports. Exemptions to China's 125 percent tariffs now apply to some U.S.-made microchips and semiconductors, crucial items that China may not be able to make at home or source elsewhere.

All right. President Trump says that he will sit for an interview with the journalist who exposed the Signal group chat where top officials discussed classified military information. The Atlantic editor-in- chief, Jeffrey Goldberg, was inadvertently added to that group chat by a national security adviser. Goldberg and two other writers were seen leaving the White House Thursday afternoon.

And Trump posted on social media that he's doing the interview "out of curiosity" and as what he calls "a competition with himself." Defense Secretary Pete Hegseth and the Trump administration initially downplayed the "Signalgate" controversy until Goldberg shared screenshots from that chat to let readers draw their won conclusions.

For the first time we are getting a detailed look at how the Trump administration is trying to carry out deportations using the controversial 18th century wartime law known as the Alien Enemies Act. New court documents lay out the legal process for immigrants facing deportation under the act.

And CNN's Priscilla Alvarez explains.

[05:50:00]

(BEGIN VIDEOTAPE)

PRISCILLA ALVAREZ, CNN CORRESPONDENT: A newly unsealed court declaration is giving a new window into the procedure for migrants who are subject to that sweeping wartime authority known as the Alien Enemies Act. It's a measure that's only been used three times in U.S. history.

It's also one that the Supreme Court recently said the Trump administration can use. But it noted that those who are subject to it do need to have some level of due process and be provided reasonable time to contest their removal underneath this authority. Now we are learning what exactly the administration has interpreted that to mean.

Now, according to this declaration, migrants are provided a notice -- one page -- saying that they are going to be removed under the Alien Enemies Act. Now it is provided in English though the declaration says that there is a conversation to be had with the officer who translates it.

Then it says that the migrant or the individual who is subject to the removal is to say within 12 hours if they plan to contest it -- to state their intention to contest it and then given 24 hours to actually contest their removal underneath this authority.

That is a truncated process, according to the American Civil Liberties Union, and does not give any time for someone to reasonably be able to contact an attorney and also file their petition to contest the removal under this sweeping wartime authority.

Now, this proceeding is still ongoing similar to others across the country -- other courts that have halted the removal of migrants using this authority as they try to glean more information from the administration and the way in which they are proceeding with its use.

In this case -- this case being of migrants who are in detention in a certain part of Texas -- well, the judge halted their removals until at least May 2.

Priscilla Alvarez, CNN, Washington.

(END VIDEOTAPE) SOLOMON: President Trump not even 100 days into his second administration but he may already be looking at another term even though that violates the Constitution. Apparel featuring the message "Trump 2028" has not popped up on Trump's official retail website.

The U.S. Constitution's 22nd Amendment clearly states that "No person shall be elected to the office of the president more than twice."

The second round of the NFL draft happening later today. Next -- coming up, meet the artist who created the unique hallway each player at the draft walks through when their name is called.

We'll be right back.

(COMMERCIAL)

[05:56:50]

SOLOMON: Welcome back.

Round two of this year's NFL draft is tonight. And here is a look at the draft's top three picks selected last night.

With the first pick of the draft, the Tennessee Titans selected quarterback Cam Ward. Ward set an NCAA division one record throwing for 158 touchdowns. With the second pick the Jacksonville Jaguars chose Heisman Trophy winner Travis Hunter. Now Hunter could become the first full-time two-way player in NFL history. He excelled at both wide receiver and cornerback in college. And the New York Giants picked third, selecting Penn State edge rusher Abdul Carter.

Congrats guys.

All right, during tonight's second round of the draft keep on eye out for a one-of-a-kind art installation that each player walks through.

CNN's Coy Wire has that story.

(BEGIN VIDEOTAPE)

COY WIRE, CNN SPORTS ANCHOR (voiceover): Green Bay, Wisconsin hosting this year's NFL draft. And while one name won't be called on stage his hard work will be on full display.

IKE WYNTER, MILWAUKEE-BASED ARTIST: My name is Ike Wynter, and I got commissioned by the NFL to bring all 32 NFL team logos to life.

WIRE (voiceover): Ike Wynter's artwork lines the very path future stars walk after hearing their names called. A Milwaukee native, he spent more than 600 hours building logos for all 32 teams entirely out of furniture he found on the side of the road.

WYNTER: I've yet to stain or paint or buy a piece of wood for my art. When they kind of gave me the green light to start on the project I just kind of started disassembling all of this furniture and it's all from alleys and the side of the road. WIRE (voiceover): No paint, no stain -- just raw materials repurposing more than 50 pieces of discarded furniture for every 3x3-foot work. This year's draft theme is "Built By Community."

Wynter says using Wisconsin's castoffs without altering their natural beauty was important.

WYNTER: Wood is always the one thing getting tossed. So instead of just tossing it, one day I literally just made the conscious effort to bring the wood home and use a couple of saws in my garage and just cut it up -- truly, out of, like, curiosity and for fun, and as an art project.

WIRE (voiceover): While he's already created pieces for heavyweights like Mike Tyson, he calls this project the coolest of his life.

To make the moment even more special, when the NFL came knocking, they had no idea they were tapping into a family legacy. Wynter is the grandson of Ray Kuffel, who was drafted by the Buffalo Bills in 1944.

WYNTER: I'm glad that my grandfather's story gets to be revisited through this whole journey. I'm glad that my art is more publicly known through this journey. Whatever tomorrow brings, as long as I get to sit in my studio and cut wood and listen to music, I'm on a good journey, you know.

WIRE (voiceover): Wisconsin's trash reimagined into treasure -- a reminder that not all legacies are written in stats; some are built in sawdust.

Coy Wire, CNN.

(END VIDEOTAPE)

SOLOMON: Our thanks to Coy for that report.

And our thanks to you for joining us here on EARLY START. I'm Rahel Solomon live in New York. "CNN TIS MORNING" starts right now. Have a great weekend.