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Early Start with Rahel Solomon

Trump's Budget Bill Heads To Senate; Colorado Antisemitic Attack; South Korea Votes For President. Aired 5-5:30a ET

Aired June 03, 2025 - 05:00   ET

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

[05:00:25]

RAHEL SOLOMON, CNN ANCHOR: Good morning and welcome to our viewers from the U.S. and all round the world. I'm Rahel Solomon. It is Tuesday, June 3rd, 5:00 a.m. here in New York.

And straight ahead on EARLY START.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATE: I'm not happy about certain aspects of it. It's the Big, Beautiful Bill.

UNIDENTIFIED MALE: He had been planning this attack for a year.

UNIDENTIFIED MALE: People are devastated, horrified, traumatized.

UNIDENTIFIED MALE: They were violently and brutally attacked by fire and it's like brings up horrific images of our past.

UNIDENTIFIED MALE: Critical moment here in this part of the world, we will know who is the next president of South Korea in the next few hours.

(END VIDEO CLIP)

(MUSIC)

SOLOMON: We begin this morning in Washington. Two key pieces of legislation concerning President Donald Trump's domestic agenda are set for review by Congress. The White House is expected to deliver the long-awaited package of budget cuts from its work with DOGE totaling around $9.4 billion. Thats according to an official with the Office of Management and Budget.

House Speaker Mike Johnson says it could be the first of many to come.

(BEGIN VIDEO CLIP)

REP. MIKE JOHNSON (R-LA), SPEAKER OF THE HOUSE: I think there's an appetite amongst all house Republicans to cut wasteful spending. The outrageous things that were uncovered with DOGE and USAID, for example, is something that we've been anxious to handle and address. I think there may be multiple packages rescissions packages coming, and we'll process them as quickly as we can. I mean, it's a big priority for me.

(END VIDEO CLIP)

SOLOMON: Meantime, Republicans are speaking up about meetings with President Trump on ,Monday concerning his big, beautiful bill. Missouri Senator Josh Hawley posted online that his conversation with the president was, quote, great. He also claimed that there would be no cuts to the Medicaid program. A sticking point which held up the bill in the House.

Now, it's one of many things that could become an issue as the Senate reviews the bill. It's estimated that the tax provisions in the bill would increase the national deficit by more than $3.9 trillion over the next decade. That's according to the Joint Committee on Taxation, but also include hundreds of billions in cuts to the Medicaid and food stamp programs. The president himself even noting that even he isn't completely happy with the bill.

(BEGIN VIDEO CLIP)

TRUMP: I'm not happy about certain aspects of it, but I'm thrilled by other aspects of it. That's the way they go. It's very big. It's the Big, Beautiful Bill. But the beautiful is because of all of the things we have. The biggest thing being, I would say, the. The level of tax cutting

that we're going to be doing. We're going to make people really be able to -- we'll have one of the -- we'll have the lowest tax rate we've ever had in the history of our country.

(END VIDEO CLIP)

SOLOMON: All right. Shares of the big three U.S. automakers are hoping to rebound today. They took a beating on Monday after President Trump said last week he would double steel and aluminum tariffs to 50 percent. Ford, General Motors and Stellantis all closed down more than more than 3.5 percent on Monday.

Meanwhile, the White House says that President Trump will likely speak by phone with his Chinese counterpart Xi Jinping this week. Tensions continue to grow after China accused the U.S. of, quote, provoking new economic and trade frictions. President Trump claims that Beijing has violated a trade truce that was agreed to last month.

And persistent concerns about a global trade war have weakened the U.S. dollar. Treasury yields are on the rise as investors sold bonds on Monday. JPMorgan Chase CEO Jamie Dimon, weighing in and warning that the bond market will crack if the U.S. doesn't get its act together, with implications for everyday Americans, small businesses and the U.S. government.

(BEGIN VIDEO CLIP)

JAMIE DIMON, JPMORGAN CHASE CEO: It is a real problem. One day, we're going to have -- the bond markets going to have a tough time. I don't know if it's six months or six years. If people decide that the U.S. dollar isn't the place to be, yeah, you could see, you know, spreads gap out. You know, credit spreads gap out. And that will become a problem.

We had that during COVID. The Fed probably stepped in. Then we had that in 2019. We had it in '20. It will happen again. It's just -- I can almost guarantee you that. I just don't know exactly when or what the trigger might be.

(END VIDEO CLIP)

SOLOMON: All right. Let's take a look at U.S. futures this morning. All off about half a percent. A few things to watch later this morning with the jolts, labor, economic data, a look at how many people are being hired, how many people are being let go.

Later this week, we get the all-important May jobs report. So, a lot of economic data on the labor front here in the U.S. economy. So, watch that space.

And other news this morning. The suspect in the violent attack on a Jewish community event in Boulder, Colorado, has been charged with a federal hate crime.

[05:05:04]

Authorities accuse the suspect, Mohammed Sabry Soliman, of using an incendiary device in the attack. They say that he had been planning for a year. Department of Homeland Security says that he is in the U.S. illegally after his visa expired.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: We have seen two horrific cases of antisemitic violence in our country in the last two weeks, and it is unacceptable to this president. This terrorist was allowed into this country by the previous administration, was foolishly given a tourism visa and then was illegally allowed to stay. These individuals are going to be deported, and we're not going to tolerate such violence in our country.

(END VIDEO CLIP)

SOLOMON: The suspect is also facing 16 counts of attempted first degree murder. CNN's Whitney Wild has the details.

(BEGIN VIDEOTAPE)

CALLER: There is a male with a blowtorch setting people on fire.

CALLER: You know, there is at least one party rolling around in flames.

WHITNEY WILD, CNN LAW ENFORCEMENT CORRESPONDENT (voice-over): Armed with Molotov cocktails and a makeshift flamethrower, authorities say 45-year-old Mohammed Sabry Soliman burned at least 12 people at a weekly Jewish gathering in downtown Boulder as they peacefully marched, calling for the release of Israeli hostages in Gaza. UNIDENTIFIED MALE: We need medical for multiple burns on the

courthouse lawns.

WILD: According to law enforcement, Soliman sprayed gasoline while holding a lighter in the direction of the marchers Sunday afternoon while yelling "Free Palestine". The FBI is investigating the case as an act of terrorism.

AV KORNFELD, WITNESS: A person who threw the Molotov cocktail had two more in his hand, and he was holding them, and he was yelling and he was screaming at everybody. I think he was saying, you're killing my people.

WILD: An elderly Holocaust survivor was among the victims.

UNIDENTIFIED MALE: He's making Molotov cocktails.

WILD: Law enforcement says two Molotov cocktails were thrown and 16 more were found at the scene.

J. BISHOP GREWELL, ACTING U.S. ATTORNYE FOR THE DISTRICT OF COLORADO: Mr. Soliman stated that he had been planning this attack for a year, and he acted because he hated what he called the Zionist group.

WILD: During the attack, Solomon took off his vest and shirt as they caught fire, according to witnesses.

According to an affidavit, he told the FBI he wanted to kill all Zionist people and wished they were all dead, stating he would do it again. Solomon is in the country illegally, according to homeland security. He is an Egyptian national and had lived in Kuwait and applied for asylum, but was denied a visa.

DHS said he entered the country in August 2022 as a nonimmigrant visitor and was granted a two-year work authorization in March 2023 that has since expired.

Soliman appeared in court.

UNIDENTIFIED FEMALE: This is the matter concerning Mohammed Soliman.

WILD: Soliman is facing 16 counts of first-degree attempted murder, as well as multiple counts of assault and felony use of incendiary devices, among other state and federal charges. Recent antisemitic incidents have become increasingly violent. Sunday's attack, coming after two Israeli staff members were shot and killed in Washington, D.C., outside an event at the Capital Jewish Museum nearly two weeks ago.

ELIAS RODRIGUEZ, MURDER SUSPECT: Free, free Palestine!

WILD: And nearly two months after a man set fire to the Pennsylvania governor's mansion using Molotov cocktails.

(END VIDEOTAPE) WILD (on camera): The Boulder district attorney listed a very long list of charges that Soliman is facing, and that's just in state court alone. In total, the state charges could result in a maximum sentence of more than 400 years behind bars.

Back to you.

SOLOMON: Palestinians on their way to receive aid in southern Gaza have come under fire for a third consecutive day. A warning now that the video you are about to see is disturbing. At least 27 people were killed, dozens wounded, according to the Palestinian ministry of health. The Israeli military says that it opened fire on suspects who advanced on the troops. On Monday, three people were killed, and on Sunday, at least 31 people were killed while on their way to get aid.

Let's get more now from Paula Hancocks, who joins us live from Abu Dhabi.

Paula, what's the latest this morning?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Rahel, we see that for a third consecutive day there has been loss of life, very close to one of the aid distribution sites. It's in southern Gaza. It's close to Rafah. This particular occasion on Tuesday was the al-Alam roundabout, very close to where we have seen this, this chaos descending into shooting over the past couple of days as well.

Now, there are Palestinians desperately trying to find any food and water coming to the distribution sites in the early hours of the morning to try and get there early so that they can secure aid. And these are the occasions when we are seeing this -- these incidents break out.

Now in this particular one, this Tuesday, we heard from the IDF that they did open fire multiple times, they said, after identifying what they called several suspects moving towards them.

[05:10:07]

They say that warning fire did not cause those individuals to retreat, and they then fired additional shots. Now we do have footage showing many bodies and also many patients, many injured, heading to Nasser Hospital, which was close by. We've heard from a doctor at Nasser Hospital saying that they are asking for more blood donations at this point. In fact, the director was asking for blood donations outside of Gaza. So, from the West Bank, Jordan, Egypt, the UAE, saying that those inside Gaza are simply too anemic, and they are calling for these blood donations from those in the region.

So, it is a very desperate situation for civilians at this point who are simply trying to get food and water. This is a scenario that we had heard warnings about from the United Nations agencies working on the ground from other NGOs working on the ground. They had concerns that by having so few distribution points for this Gaza humanitarian foundation, this U.S. and Israeli backed aid distribution site, then you were forcing hundreds of thousands of civilians to move around Gaza to, in many cases, walk many, many miles to try and get to a site in the middle of a brutal war. They were worried that this was going to raise the risks, and it does appear to have been particularly deadly for many civilians looking for aid.

We heard from the head of UNWRA saying that aid distribution is becoming a death trap for civilians. We're hearing from the U.N. and from other groups, again, asking the Israelis to open border crossings to allow more aid in and to allow them to be able to distribute at far more points across the Gaza Strip. So, not forcing Palestinians to have to travel in the midst of such a brutal war.

Now, at this point, CHF says that they will continue what they are doing, that they don't have reports of, of these incidents taking place or of shooting happening in and around the aid distribution sites. We've also heard from the U.N. Secretary General Antonio Guterres. He was referring back to the Sunday incident where dozens were killed, saying there has to be an independent investigation into exactly what is happening.

He also said that it is unacceptable that Palestinians are risking their lives for food -- Rahel.

SOLOMON: Paula Hancocks reporting for us there. Paula, thanks so much.

Still ahead for us, the polls are open across South Korea as voters hope to end months of political turmoil with a new president. We are live in Seoul with a look at the candidates and the issues.

Plus, why some U.S. companies are holding back on celebrating Pride month this year. We'll hear why.

And, an unpredictable force of nature now commanding maximum caution. We'll have the latest on the largest eruption of Sicily's Mt. Etna in more than a decade.

We'll be right back.

(COMMERCIAL BREAK)

[05:17:46]

SOLOMON: Welcome back into South Korea now, where we should know within the next few hours who will be the country's next president. Voters are going to the polls right now to choose who will succeed impeached President Soon Suk Yeol. Liberal. Liberal opposition party leader Lee Jae-myung is seen as the frontrunner. His main rival is conservative Kim Moon-soo.

The country is hoping to move on from months of political turmoil and division after the brief martial law declaration by former President Yoon in December. Yoon was impeached last year and still faces insurrection charges for sending troops to parliament. He continues to deny any wrongdoing.

Let's get to CNN's Mike Valerio, who is live this hour in Seoul. Mike, great to see you.

Polls closed in a few hours. We've been reporting on these months of political turmoil in South Korea, you especially. What are voters looking for in a new president?

MIKE VALERIO, CNN CORRESPONDENT: They're looking for a couple of things, Rahel. But first of all, they need somebody to hit the reset button on South Korean democracy. And what we mean by that is that just imagine wherever you're watching from around the world this morning or afternoon, whatever time zone you are, you're in, and you have not one but three acting presidents within the span of six months after the elected president is kicked out of office for sending troops to the parliament. That is what South Korea has had to deal with for half a year now.

So that, of course, is horrible for the confidence of a nation on the world stage, not to mention the confidence of investors, the business community. Somebody needs to come in as the new president and hit that reset button.

Also, bring a marker of stability to the financial markets, to the economy may be in a place to make decisions, yes or no, to particulars of future trade deal decisions with the United States in particular, and also, reassure democratic allies that something like sending troops to the national assembly and a brush with authoritarianism is never going to happen again. But let's listen from the voters themselves.

(BEGIN VIDEO CLIP)

YOUM SUK-HUN, VOTER (through translator): The current domestic situation has so many unstable factors, even economically. So I cast a vote this year with the thought to stabilize the domestic and international situations of the country.

[05:20:00]

KIM DONG-WAN, VOTER (through translator): I saw the news about martial law while I was abroad for a long time, so I felt the urge to return to Korea as soon as possible. My heart was heavy since December, though, I was abroad, I think I participated in this election with my whole heart.

(END VIDEO CLIP)

VALERIO: So we have two main candidates. We have Lee Jae-myung. As you mentioned, he is the progressive liberal candidate, and, Rahel, he is framing this election as a referendum on what happened six months ago. He's saying essentially to the electorate of this country, why trust the conservative party when the conservative president allowed something like martial law to happen?

The conservative candidate, though, Kim Moon-soo, is saying even though martial law was a mistake, conservative principles will get South Korea through this trepidatious moment, especially as it comes to trade. This is evenly, nearly evenly divided country. So were going to see what happens. We should have a winner declared shortly after midnight local time.

SOLOMON: Mike, it's really interesting in that soundbite, that clip we just played from the one voter who talked about some of the domestic economic issues, we know there's a rising cost of living issue. There's high unemployment for young people.

What visions do both of these candidates have when it comes to those clearly pressing domestic issues, but also the relationship with the U.S.?

VALERIO: Yeah. And, you know, the domestic economic issues play into the wider world because South Korea is such a tech powerhouse. Samsung, Hyundai, Kia Motors, LG, you know, all of those things play from domestic economic issues to South Korea's place on the world stage. So, let's talk about their biographies, because where they come from helps inform their economic and geopolitical worldview.

So, Lee Jae-myung, you know, he rose from poverty, Rahel. He's the liberal candidate, worked in a factory growing up, rose up to become the mayor of Seongnam, which is a tech hub about an hour south of Seoul. Became the governor of Gyeonggi, which is the biggest province in South Korea.

And because of his really hard upbringing, sees himself as a voice of the working class, fashions himself as a South Korean Bernie Sanders, wants universal basic income for the poorest of society and to branch it out to everybody eventually, and to have the government lead the way in terms of spending big time to energize the economy.

He also wants okay relations to maintain a good rapport with the United States, but also, importantly, better relations with Beijing and better relations with Pyongyang, which is a departure from the past president.

On to the conservative candidate, Kim Moon-soo. He is holding on to his conservative orthodoxy. He was a labor minister for the past president, the one who declared martial law and was removed. He sees tax cuts, tax cuts for businesses and the middle-class deregulation as the way to go to help save South Korea's economy. And he wants a bear hug of relationship with the United States to not move away from it at all.

He's in favor of perhaps paying more for the American troops who are here, and also wants to maintain a hard line against North Korea. So all of these things in the blender of South Korean politics, we will know how this shakes off, how this shakes out when the blender stops moving, when all the votes are counted again in just a few hours. It has big implications for the U.S.'s major partner in this corner of the world, and also for how this key democracy moves forward after such a traumatic chapter in December, Rahel.

SOLOMON: Yeah, it's really been something to watch the last few months.

Mike Valerio, reporting live for us in Seoul, Mike, thank you.

Well, hours after a disappointing round of peace talks, Ukraine launched drone attacks on Russian occupied areas that left hundreds of thousands of people in the dark. We'll have those details for you straight ahead.

(COMMERCIAL BREAK)

[05:28:19]

SOLOMON: Welcome back. Some 700,000 people were without power in Russian occupied parts of Kherson and Zaporizhzhia Monday night. Ukraine drone attacks on energy infrastructure caused the widespread power outages. That's according to Moscow backed officials in the two regions.

Hours earlier, Russian and Ukrainian officials met for a second round of peace talks in Istanbul. But the discussions ended nearly as soon as they began and without any major breakthroughs, both sides did agree to work on a new prisoner exchange. As for ceasefire, statements from both delegations suggest that that is not likely.

I want to now get to a report from Nick Paton Walsh.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice-over): A bird's eye view of humiliation. Ukrainian drones halfway across Russian Siberia, seconds from hitting the Kremlin's most prized bombers.

But the data was bad for Moscow, 117 drones hitting 41 long range bombers across Russia, a Ukrainian security source said. A torn-up skyline here in Belaya exactly what Moscow dreaded and Ukraine needed, a boost to its flagging morale, damaging Russia's war machine, for sure, but maybe also its calculus in peace talks.

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: Our operation spiders web yesterday proved that Russia must feel what its losses mean. That is what will push it toward diplomacy.

WALSH: Ukraine hit Irkutsk, 4,500 kilometers away from Ukraine, where Google Earth still shows similar propeller driven aircraft in the open. But they also struck Olenya right on the Arctic Circle. Similar planes, also on Google, another example of something that just was not meant to happen in Russia's brutal war of choice. For how was as extraordinary. Ukraine's security.