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One World with Zain Asher
Russia Launches Record Drone Attack Targeting Kyiv; Ukraine: Russia Launches Record Drone Attack on Kyiv; Republicans Say Complaints about Medicaid Cuts are Overblown; U.S. to Send Out Tariff Letters Starting Friday; Liverpool Fans Pay Tribute to Jota Outside Anfield Stadium; Previewing the Nathan's Hot Dog Eating Contest. Aired 11a-12p ET
Aired July 04, 2025 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[11:00:00]
ZAIN ASHER, CNN HOST, ONE WORLD: A sleepless night in Kyiv as Russia launched hundreds of drones at Ukraine's capital. "One World" starts right
now. Residents emerge from shelters to the smell of smoke after what Ukraine's Air Force calls a record setting drone attack. President Trump
gets his Fourth of July celebration.
He'll sign his signature policy bill into law in just hours. And on your marks, get set eat. You've got the best tips for competitive hot dog eating
just in time for a fourth of July barbecue. All right, live in New York. I'm Zain Asher, Bianna Golodryga is off today. You are watching "One
World".
Ukraine calls it one of the worst attacks since Russia's full-scale invasion more than three years ago, and it comes as the U.S. President
engages in telephone diplomacy with the leaders of both countries. Just hours after Donald Trump said he made no progress towards a ceasefire in a
call with Russian President Vladimir Putin.
Moscow unleashed a record number of missiles and drones on its neighbor. Authorities say the massive aerial bombardment on Kyiv killed one person
and injured nearly two dozen others. Hours after that deadly barrage, Trump spoke with Volodymyr Zelenskyy by phone in a conversation Ukraine's
presidential office describes as very important and meaningful.
Earlier, Zelenskyy expressed his frustration on social media and warned that without large scale pressure, Russia will not change its quote, dumb
and destructive behavior. That comment coming just days after the Pentagon for some weapons shipments to Ukraine. Nick Paton Walsh joins us live now
from London.
So, Zelenskyy obviously very frustrated by this. He's been trying to tell the U.S. that Putin simply cannot be trusted. Just walk us through the
intensity of these overnight airways in Ukraine.
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Yeah. I mean, I think it's clear from the readout we've received from President
Zelenskyy's team in the past minutes that they've emerged from this phone call with President Trump, at least projecting a sent positivity here,
sounding grateful, is the phrase used for the support from the United States, calling it a very important and fruitful conversation, but also
saying how President Trump is well informed.
And they spoke about the opportunities for air defense. Remember the absence of patriot missile interceptors key to stopping Russian ballistic
missiles as something deeply troubling Ukraine, at the moment. Trump himself, a matter of hours ago, hinted that indeed, those supplies had
stopped, as reports had suggested from his own pentagon.
Maybe something different is in the works. Certainly, Zelenskyy talks about meetings between their teams and the possibility of defense industrial
capabilities and joint production. So maybe there's something changing the dynamic there, very few specifics given by Zelenskyy in his readout.
But certainly, a tone of somebody who perhaps came away from that conversation with something indeed that they wanted, but that came,
frankly, the attacks sandwiched by a phone call with Putin and Trump, and then matter of hours after that call, which Trump described as very
disappointing.
We now have had what seems by Ukrainian figures to have been a record drone assault, mostly centered on the capital Kyiv, some extraordinary images of
the intensity of the anti-aircraft fire required. It does seem as though there was a slight change in feeling about many subjected to this.
That perhaps Kyiv's air defenses weren't doing quite such the admirable job they've been doing in past months or so, particularly with this higher toll
and concerns as well, because Ukrainian intelligence assessments are now suggesting that perhaps Russia, that's risen from about 100 drones a night
a year ago, is now able to put forward 500 or so, and may they be concerned, be able to field 800 to 1000 in the months ahead.
But it's really the absence of the patriots that leave people concerned. There are suggestions now that perhaps one person may have lost their life
on the assault on Kyiv last night particularly intense, perhaps a bid to challenge Kyiv's air defense and maybe to see quite what they have left in
terms of interceptors. But here's some of the remarkable images from last night.
(BEGIN VIDEOTAPE)
WALSH (voice-over): Hear the buzz and all you can do is wait. Kyiv has seen this almost every night for months, but there was something about Thursday
night's ferocity that seemed new and unchecked, even underground. No sleep is the norm.
[11:05:00]
Huddling in basements too, if you're not so immune to the sirens, you turn over in bed when you hear them, hearing Russia broke another record of
drones fired. Has also happened a lot this past month. What was different was the possibility the capitals air defenses behind interceptions like
these, might be in trouble.
Gunners try to pick off drones, but the American supply of patriots that take down ballistic missiles has stopped. Leaving nights here longer and
louder and solace something you find in the subway. A record assault that came moments after presidents Trump and Putin spoke that too did not go
well.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: I'm very disappointed with the conversation I had today with President Putin,
because I don't think he's there, I don't think he's there, and I'm very disappointed. Well, I'm just saying I don't think he's looking to stop, and
that's too bad.
WALSH (voice-over): Among the smoldering remains of civilian worlds terrorized. Ukraine's Foreign Minister claimed fragments of a grand two
combat drone were found made in China. The growing global footprint of a war where Kyiv's daylight is dark and still by the smoke of the night
before, and where the damage done is measured in intimate, personal loss.
(END VIDEOTAPE)
WALSH (on camera): Now we're into, again, a key, possibly defining moment in this war. We don't know the details of the Trump, Zelenskyy call. Did
they find a mechanism to continue supplying patriots, which the U.S. has said is deeply out of stock in terms of their own supplies.
Going forwards, they've been suggestions, perhaps, that Germany might be able to step in and provide something along the lines of that, or at least
engage in joint production, too, with the Ukrainians. That may be one way around this urgent, desperate shortage. Zelenskyy has been warning for
months that patriots are in very short supply. And indeed, Russia has appeared able to ramp up its ballistic missile production, even with some
North Korean help in the past months or so.
But that's the fight for Ukraine skies and the protection of its civilian population. Another potentially more seismic threat is building to around
the front lines, where we know that 110,000 Russian troops, according to Ukrainian officials, are amassing near the eastern front lines in Pokrovsk
and also north of Sumy inside Russia, 50,000 are also thought to be massing there as well.
So, signs that Russia is gathering a force, possibly slightly larger than that which it invaded within 2022 according to Ukraine officials, and that
yields potentially deep fears for the weeks and months ahead, on the front lines where Ukraine is suffering from ammunition shortages, manpower
issues, and facing a Russia clearly emboldened too by at very best, the wobbly nature of western and American support in the past months, Zain.
ASHER: Right, Nick Paton Walsh thank you so much. Oleksiy Goncharenko got to Ranko is a member of the Ukrainian parliament. He joins us live now from
Kyiv. Oleksiy, thank you so much for being with us. My question to you, you know, what do you hope, obviously, Zelenskyy and Trump spoke today?
What do you hope the Americans are finally coming to understand about the pitfalls of trying to negotiate with somebody like Vladimir Putin?
OLEKSIY GONCHARENKO, MEMBER OF UKRAINIAN PARLIAMENT: First of all, Happy Independence Day. And I want to thank all Americans for all support to
Ukraine. And I want to wish all the best to United States. God bless America. And again, thanks for all support.
And now this is a critical moment, and we hope very much that President Trump will finally realize that the way he tries to communicate with Putin
simply doesn't work, because after know even worse, Putin feels himself emboldened, and Putin humiliates President Trump, because how to explain
when Trump spoke with Putin about ending of the war, ending of hostilities.
And immediately Putin gives order to make one of the biggest attacks on the capital of Ukraine. He could choose any other town city in Ukraine. They're
doing it almost every night. But he chose Kyiv, and it was denied to July 4 and immediately after conversation with President Trump.
This is a way how Putin tries to show that he humiliates United States of America. And I'm sure that United States will not leave these unnoticed.
And President Trump, I hope, will understand that the only way to speak with Putin is to use the language of force, language of strength, because
United States of America are much stronger than Putin, but he is a bully which just tries to understand, where are the borders?
[11:10:00]
ASHER: And you know, what's interesting is that Trump, it appears, is beginning to understand. He talked about being disappointed, walking away
disappointed from that phone call with Vladimir Putin, essentially saying that he now sort of seems to see that Vladimir Putin isn't necessarily
interested in ending this war.
The question is, how exactly does Trump go about ramping up pressure on Putin, specifically because negotiation doesn't work? In fact, the U.S.,
obviously, we got word this week, the U.S. was halting weapon shipments to Ukraine, which is a massive problem, because obviously at this point, they
really need, above all things, air defenses.
So just walk us through what specifically Trump should be doing to apply pressure on Vladimir Putin, now that he is aware that negotiation is not
working.
GONCHARENKO: Yeah, first, let us speak about halting of these and pause in these weaponry supply that's absolutely opposite to what should be done,
because by stopping pausing of weaponry supply, he emboldens Putin. And Putin immediately tries to use this moment to attack Ukraine, where we just
don't have enough interceptors and capacity to stop Russian attacks.
So, what President Trump can do and what will work if Ukraine will receive much more weaponry after such conversation and when Putin shows humiliation
and not respect to the United States. If Putin will see this next time, he will think twice whether to ignore what he was said from the President of
the United States of America, or not to do this.
Secondly, are sanctions, these we know that more than 80 senators in the U.S. Senate signed the bill. And I think it's not many things today in
United States which can unite so many senators from both sides of political spectrum, both Republicans and Democrats.
And I think this is powerful instrument, and if President Trump will implement these sanctions, you all, at least, will start to move this bill,
believe me, the tone of Putin and the way he behaves will change significantly. So, this is the way maybe President Trump knows other way, I
am sure that administration knows what to do.
But this is main to show Putin, the United States are strong and ready to act. In any other case, Putin will feel himself more and more emboldened,
and the aim of President Trump to stop the war will never be achieved.
ASHER: So just in terms of, I mean, you know, obviously we're talking about how to incentivize Vladimir Putin to stop this war, what sort of pressure
Trump can put on him. But if you look at what Vladimir Putin is aiming to achieve here, I mean, obviously he wants Ukraine, at the very least, to
cede some territory to Russia in order to stop this war.
And you know, Russia already controls about 1/5 of the territory within Ukraine. If the United States does not back Ukraine strongly, militarily,
in terms of air defenses, in terms of increasing or stepping up weapons supply, weapons shipments. What is at stake for Ukraine going forward?
And what are the alternatives to get this war to stop? Because obviously, as you know, the people of Ukraine have been suffering for pretty much
three years now.
GONCHARENKO: Yeah. The war already is in place more than 10 years, for more than 11 years --
ASHER: Right.
GONCHARENKO: -- full scale invasion for three years, for three years and a half. So, what is at stake? For Ukraine, our existence is at stake. So,
Putin is not interested in two regions, four regions, five regions. That's not true. If he will be giving why he's not stopping today, you said, you
say you're right.
Putin controls more than 20 percent of Ukrainian territory, and Ukrainian says we are ready to ceasefire, to have a ceasefire right now. Why Putin is
not agreeing on this? Because he wants much more. He wants the whole Ukraine, and not just Ukraine. President Trump said that Putin has
ambitions, territorial ambitions, beyond Ukraine.
And that's true. Putin is interested in Ukraine, in Baltic States, in Poland, in Georgia, in Moldova, and so on and so on and so on. So, the way,
so, what is at stake for Ukraine? I said to you was, it was what is at stake for United States. For United States, I think also a lot of is at
stake.
First for President Trump, I am sure he doesn't need his own Afghanistan, because collapse of Ukraine, possible collapse of Ukraine would be even
much, much worse, after billions of dollars, many -- and billions of dollars invested, the face of the United States is at stake.
[11:15:00]
The name of the United States. Is the United States country, its partners can rely on or not? We also don't forget about nuclear Non-Proliferation
policy, because Ukraine is the only state in the human history which voluntarily gave up the third largest nuclear arsenal in the world, and
that was under the guarantees of the United States of America.
If Ukraine would collapse, what will be the lesson to all other countries? Go nukes if you want to have security, and nobody will never stop them,
because they will see what will be if they will not. So, a lot of is at stake, not just for Ukraine, but for the United States of America,
personally, for President Trump, and for the whole world, because other aggressors are watching, and they are thinking what they can do and what
can't.
ASHER: Yeah, and especially, you know, when you talk about what's at stake, it looks as though he's frozen. OK, we have you back. It looks as though,
you know, Vladimir Putin is gearing up not just to seize Ukraine, but you mentioned that the other Baltic states are in jeopardy as well.
Oleksiy Goncharenko, thank you for your time. We appreciate it. Thank you. All right, it is a waiting game in the Middle East, as Hamas says it will
respond to the latest ceasefire plan for Gaza, after consulting with other Palestinian factions. President Trump says we should know Hamas is
intentions in the next 24 hours.
This as the U.S. President gears up to host the Israeli Prime Minister at the White House on Monday. Meantime, we are getting a possible timeline for
the release of hostages. Under the 60-day proposal. Humanitarian aid would begin to flow into Gaza immediately, if and when the initial truce goes
into effect.
And Israel and Hamas would also negotiate for a permanent ceasefire. CNN's Jerusalem Bureau Chief Oren Liebermann joins us live now. So just give us a
bit more detail as to where ceasefire negotiations stand at this point and some of the critical decisions that Netanyahu has to weigh ahead of his
meeting with President Trump, Oren?
OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: Well, as of right now we're waiting on a Hamas response. This is the latest proposal that was put
forward by Qatar to Israel and Hamas earlier this week. Israel accepted on Tuesday with Netanyahu confidant Ron Dermer in Washington.
And now it is Prime Minister Benjamin Netanyahu himself who will head to Washington over the weekend to meet President Donald Trump on Monday. Trump
said yesterday that Hamas should respond within 24 hours, and that's what we're waiting on. In the meantime, we've gotten a much better sense of the
timeline here, based on this 60-day ceasefire, according to a source familiar with negotiations.
A lot happens on day one. First, the two sides immediately enter negotiations to try to get to a permanent ceasefire so they have as much
time as possible to try to get there. Second, aid begins flowing in immediately, and not just aid from the controversial Gaza Humanitarian
Foundation, aid from the United Nations and other organizations as well, immediately flows in, in much larger numbers.
Then the first hostage release happens on the first day of the ceasefire. Eight living hostages come out in exchange for an unspecified number of
Palestinian prisoners and detainees. Unlike earlier proposals, the release of hostages in exchange for prisoners and detainees is spread out over the
entire 60-day ceasefire.
So, it's a total of 10 living hostages and 18 deceased. Again, the first 8 of those living hostages come out on day one, the last two don't come out
until day 50, and then the deceased hostages are spread out from the end of the first week all the way through the end of the ceasefire.
And that's Hamas way of making sure that Israel sticks to the ceasefire. The other element that Hamas was looking for here is some sort of guarantee
that if negotiations to get to a permanent ceasefire. A comprehensive agreement isn't done in 60 days, the war doesn't automatically restart, and
that's where from what we have learned of the agreement itself on the table right now.
It is Trump himself who will ensure that the war doesn't restart and that the ceasefire will effectively continue until there is a comprehensive
agreement. That has been a key demand of Hamas, pretty much from the very beginning. And Zain, I will say that even as we wait on this response here,
there is a sense here that this is the closest we have come to getting to an agreement effectively since the collapse of the last agreement months
ago.
And there is an atmosphere of positivity here, and now we just have to get what we expect to be a Hamas response sometime in the next few hours,
perhaps tomorrow. Now, it is worth pointing out that even if they do accept the proposal, that doesn't mean it goes into effect immediately.
There have to be what are called proximity talks, where negotiators go back and forth between Israel and Hamas, but those can move very quickly, Zain.
ASHER: All right, watch what happens. Oren Liebermann live for us there. Thank you. We come back putting pen to paper. Donald Trump is all set to
take many of the ideas he campaigned upon and turned them into the law of the land. Live report, the White House is coming up for you.
Plus, the Trump Administration's immigration crackdowns are creating ghost towns out of previously bustling neighborhoods in California. That story
ahead.
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[11:20:00]
ASHER: Right, Donald Trump will celebrate one of the singular accomplishments from his second term in office later today, as part of the
White House's Fourth of July celebrations, Trump is going to sign the huge tax and spending package that Congress passed just yesterday.
The bill had a tough pass, path, rather through the House and the Senate, with several Republicans complaining about Medicaid cuts and how much the
bill will grow the deficit. But in the end, nearly all fell in line and gave Trump a huge win that codified many parts of his agenda.
Let's go straight to the White House now, where we find CNN's Kevin Liptak. I mean, Kevin, it took many miracles, actually, for it to get to this
point. And obviously you had a situation whereby, of course, no Democrats were interested in this bill at all, but you had quite a few Republican
holdouts.
Some of them were sharing their concerns publicly, some of them privately. You had a situation whereby many House members, Republican House members,
went to the White House to air their grievances and their concerns with the president, who managed somehow to win them over and get them on board.
You had Senator Thom Tillis, who essentially retired because of a potential falling out with the president. And then, not only does he achieve this,
but he manages to do it by the deadline that he imposed, and also symbolically, given that this is Independence Day in the U.S., you know,
that is a huge sort of propaganda, sort of potential, sort of PR moment for him as well.
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yeah, and it's exactly what he wanted when he set that deadline in the first place, which was to sort
of turn the July 4th celebrations here at the White House into a celebration of this major legislative victory, by far the most decisive one
of his second term so far.
He did spend a lot of time over the last week, cajoling Republicans into voting for this bill. He spent a lot of time on the phone. He spent a lot
of time in the West Wing, meeting with these Republicans, twisting their arms to get them behind this bill. In the end, I think his sort of
political power over the Republican Party was made pretty clear.
There were only two Republican defections in the entire House of Representatives. And I think it really does demonstrate the fealty that a
lot of these Republicans feel towards the president, despite some very serious concerns about the deficit effects of this bill, about what it
would do to Medicaid.
A lot of Republicans still feel like the components of this bill could potentially make them vulnerable in next year's midterm elections, but at
the end of the day, the power that the president has and the power that he has over his supporters convinced a lot of these Republicans to go along
with it.
[11:25:00]
And so now begins the victory lap. We saw that last night in Iowa, the president speaking at a rally type event, really basking in the success of
this bill. And it will continue later today out on the South Lawn. You know, we've already heard the band practicing. We've smelled the grills
firing up for the barbecue.
One of the big moments of this event, aside from the president putting pen on paper and signing this bill into law, will be a flyover of those B2
bombers that dropped the bunker busters on Iranian nuclear facilities last month, which I think sort of gives you a good illustration of what is
consequential stretch of time this has been for the president.
Starting with what happened in Iran, moving to that NATO summit, the Supreme Court decision, the success in Congress, really the president now
at his most politically powerful, he acknowledged himself that yesterday. But of course, now the process begins of selling this to the American
people, and that even some of the Trump, president's allies acknowledge could be a tough slog ahead.
ASHER: Right. Kevin Liptak, live for us there. Thank you so much. All right, some of the first workplace ICE raids took place in the fashion
district of Los Angeles, with dozens of people taken according to CNN -- L.A. Areas that were bustling with energy are now virtually ghost towns,
and it's impacting the economy.
Thanks to fear created by Donald Trump's immigration crackdown. CNN's Veronica Miracle takes a closer look at the fallout.
(BEGIN VIDEOTAPE)
VERONICA MIRACLE, CNN CORRESPONDENT (voice-over): If President Trump's hard line immigration policies aim to scare people here in Southern California,
they're working.
UNIDENTIFIED FEMALE: What's your name.
MIRACLE (voice-over): In recent weeks, businesses have shuttered as ICE raids and arrests have sent many undocumented people into hiding. Except
63-year-old taco stand owner, Urbano, for 43 years, he's lived in the United States undocumented. But this past month, when he's been able to
push through the fear of being deported and open his stand, he's had hardly any customers.
MIRACLE: So, he says that business is really slow. You can see a lot of businesses in the area have closed. Can you tell me, have you been in
hiding at all, or have you been out every day working?
URBANO, UNDOCUMENTED WORKER: We have to go out to work, because, if not, who's going to pay our rent, who's going to pay our taxes, like I'm paying
taxes? Can you imagine?
MIRACLE (voice-over): Urbano story is one of many. In fact, one in five California immigrant workers is undocumented. That's according to a study
by the Bay Area Council Economic Institute. So, to see the large-scale impact of the ICE raids, we went to L.A.'s Fashion District.
MIRACLE: Can you show me down Santee Alley.
ANTHONY RODRIGUEZ, PRESIDENT AND CEO OF THE L.A. FASHION DISTRICT BUSINESS IMPROVEMENT DISTRICT: Absolutely.
MIRACLE (voice-over): Anthony Rodriguez is the Business Improvement District President and CEO.
RODRIGUEZ: Probably 90 percent of these businesses are immigrant owned.
MIRACLE (voice-over): Rodriguez says there are roughly 100 shops along this alley alone. A majority of shop owners are too scared to operate, he says.
RODRIGUEZ: Unfortunately, even when it isn't -- there isn't actual activity. The fear of people, you know, someone thinks they hear something,
and that alone will shut down the entire area.
MIRACLE: On a typical weekend day, I'm told that this is packed shoulder to shoulder. You could hardly move through Santee Alley. But since the ICE
raids happened, starting about three weeks ago, there's been a 45 percent drop in foot traffic. What's going on Santee Alley?
UNIDENTIFIED MALE: Well, a lot of people are scared to come out.
MIRACLE (voice-over): Christopher Perez says he hasn't seen his neighboring vendors open for weeks.
UNIDENTIFIED MALE: It's sad seeing my own people get arrested and harassed by the ICE agents, but pretty much, I hope it all ends soon.
MIRACLE (voice-over): And just a few miles away from Santee Alley, we found a similar situation.
MIRACLE: We're on Olvera Street. It's one of the oldest streets in all of Los Angeles, and this is actually considered the birthplace of this city.
And yet, you take a look around at this cultural landmark and all of these businesses, these vendors, they've shuttered their doors.
MIRACLE (voice-over): Those that are open are struggling to make ends meet.
VILMA MEDINA, OLVERA STREET VENDOR/BUSINESS OWNER: There will be days they're like, I sold like, $10 the whole day. It's bad. All of us are
trying to, like, hold on. I mean, we're just trying to do the best we can.
MIRACLE (voice-over): Leaders and business owners all tell us the long-term economic impact of these rates is not clear, but if the nearly 2.3 million
undocumented immigrants in California were all deported. Researchers at the Bay Area Council Economic Institute estimate the state's GDP would decline
by over $278 billion dollars.
ABBY RAISZ, RESEARCH DIRECTOR AT THE BAY AREA COUNCIL ECONOMIC INSTITUTE: That's 9 percent of our GDP. That GDP value is larger than the entire state
of Nevada, than the entire State of Oregon. These are not small outputs.
MIRACLE: Do you have any message to President Trump.
[11:30:00]
URBANO: Mr. President, well, let us work, because we came to work. We didn't come to steal. We came to build in this country. We came to make the
country better.
MIRACLE (voice-over): Veronica Miracle, CNN, Los Angeles.
(END VIDEOTAPE)
ASHER: All right, still to come, the 90-day pause on President Trump's reciprocal tariff is indeed coming to an end. What the president says he's
planning to do next.
(COMMERCIAL BREAK)
ASHER: Right, welcome back to "One World". I'm Zain Asher. Here are some of the international headlines we are watching for today. One day after Donald
Trump held a call with Russian President Vladimir Putin, he spoke with Ukraine's leader by phones.
Volodymyr Zelenskyy's office describes the conversation as very important and meaningful. It comes just hours after Kyiv says Moscow launched a
record number of drones at the capital in an overnight attack. Hamas says it will respond to the latest ceasefire proposal for Gaza after consulting
with other Palestinian factions.
This as we get more details in a possible time frame for the 60-day truce. Humanitarian aid for Gaza would begin immediately, if and when the initial
ceasefire begins. And from Liverpool to lesbian and beyond, tributes are being held today for football star Diogo Jota.
He and his brother Andre Silva died in a car crash in Spain on Thursday, a private wait was held earlier in their hometown in northern Portugal, and
funeral services are being planned for Saturday. The U.S. Supreme Court has cleared the path for the Trump Administration to deport migrants held in
Djibouti to South Sudan.
The migrants have spent weeks on an American military base after a lower court put their removal on hold. This follows a June 23th Supreme Court
decision allowing the government to deport certain migrants to other countries other than their homeland. All right, time is running out for the
U.S. to reach trade deals with dozens of countries before President Trump's self-imposed deadline on July 9th.
[11:35:00]
He says he will likely start sending out letters on Friday notifying countries the cost they will pay in order to do business with America. U.S.
Treasury Secretary Scott Bessent said about 100 countries could continue to face 10 percent minimum tariff rates after the deadline. Anna Stewart joins
us live now from London with more.
So, Anna, obviously this puts a lot of countries on notice. A lot of countries are under pressure to start coming up with some kind of an
agreement with the U.S., even if it's sort of a bare minimum agreement, like what the UK ended up doing. However, this does show that the Americans
are also desperate too, because a trade war with the entire world, of course, help hurt them just as much.
ANNA STEWART, CNN CORRESPONDENT: Yes. And so, we have from the treasury secretary this news that maybe for 100 countries, nothing will change. That
10 percent tariff that currently exists will just stay in place. We also, though, had comments from President Trump earlier saying that maybe they
will range between 60 and 70 percent all the way through to 10 to 20 percent and this is when he's going to start sending out letters, as soon
as today, in fact.
So, we kind of have a naughty and a nice list being drawn up by the U.S. Administration at this stage, once again. Now for those countries that
maybe don't have a big trade surplus with the U.S., or those that even have a deficit, like Australia or the UAE, they're probably not concerned.
They're likely to be probably in the 10 percent bracket. Or perhaps those countries who are very close to reaching a deal. Perhaps they will be given
some grace or an extension of the deadline. Two of the top offenders, if we're looking at those countries that import a lot more than they export to
the U.S., I'm thinking, you know, China and Vietnam, they've actually reached some sort of deal.
China has made a trade truce when it comes to export controls. The tariff level has been reduced from both sides. So perhaps that's enough. Vietnam
did reach an agreement, at least in principle, with the U.S. That was last week. So perhaps that one's OK, but the ones to watch really the EU,
Mexico, Canada, Japan, India, all of those yet to do trade deals, and perhaps we will see some action.
We're told by Scott Bessent, the Treasury Secretary that there are more trade deals to be done. Interestingly, though, Zain, given we are so close
to this deadline, and given that the tariffs could range up to 70 percent. We're not seeing a huge amount of reaction on financial markets.
We're not seeing investors particularly worried, and perhaps that's because we have had so many different deadlines come and go. Tariff levels have
changed so many times that I'm not sure investors are really buying the threat of the less is the threat of the new tariff levels.
I don't think anyone is particularly hopeful that there will be a slew of trade deals between now and the 9th. But perhaps people aren't really
buying that it will actually happen. I think it feeds into the whole taco trade, this idea that Trump always chickens out, Zain.
ASHER: Yeah, so we've been talking about that. That's why we've seen muted reaction, in fact, that the S&P is that record high levels, right? It's not
what you would expect, given the fact that the U.S. is essentially in a trade war with the entire world. Anna Stewart, live for us there.
Thank you so much. Five months into Donald Trump's second term as president, the U.S. economy is giving off mixed signals. The economy added
a stronger than expected, 147,000 jobs in June, and the unemployment fell. Unemployment rate fell to 4.1 percent, however, on the downside, the
economy shrank in the first quarter of the year, and then there's the uncertainty over tariffs.
That Anna was, of course, just talking about not forgetting the potential impact of Donald Trump's tax and spending bill that just passed. All right,
joining us live now to discuss this is the Chief Economist for UBS Global Wealth Management, Paul Donovan. Paul, thank you so much for being with us.
I do want to start with the jobs report.
So, 147,000 jobs added in June, that headline number obviously much higher than people were anticipating. We were anticipating this year. Then 115,000
jobs added came in better than expected. Talk to us about the resilience in the labor market. I mean, obviously another thing that economists are
pointing out is that half of those jobs came from government jobs.
You had federal workers essentially switching to state and local type jobs. But and then also the fact that the private sector does show weakness in
terms of the labor market, especially when you think about construction and manufacturing and that sort of thing. Just give us your overall take on
this number.
PAUL DONOVAN, CHIEF ECONOMIST FOR UBS GLOBAL WEALTH MANAGEMENT: So, the thing about this number, the first point to make is that it's not a precise
number, it's a barely educated guess. Let's be honest, the quality of labor market data in the United States is shockingly bad. So, this will be
revised substantially in the coming months.
And we didn't actually create 147,000 jobs. You had a seasonal adjustment process, which assumes that enormous numbers of school teachers are hired
weeks before they all go on summer holiday. This is probably not true. So, the numbers are a bit dubious on the headline.
Nevertheless, with a headline like that, there isn't sort of the smoking gun that is going to force the fed into an early rate cut.
[11:40:00]
So, the headline is going to keep the Federal Reserve on hold on rates. The thing is that as soon as you start burying beneath the surface, getting
into the detail, red flags keep popping up all over the place. So, the weakness, for example, in the private sector payrolls, is something of a
concern.
The fact that people are saying, you know what, we're just giving up and exiting the workforce. So that's the declining labor force participation
rate. If we're going to use the technical jargon, its, basically people giving up and saying, you know what, I can't carry on doing this.
I can't find a job. I'm just going to stop pretending. That's also a troubling sign as well. So, in the detail, there is a number of signals
here that we may be running into some problems. Overall, the narrative about the U.S. labor market, I think, is that we are seeing firms now
reluctant to hire. They're not necessarily firing the workers that they've got, but they are reluctant to hire any new workers.
ASHER: I mean, you bring up so many important points, and that is, I mean, we have seen like quite significant revisions in the data in both
directions. I mean, in the first set of three months, we saw massive downward revisions, and then obviously, in these recent jobs report numbers
that we got, we had actually upward revisions for the last two months.
And the contractors who are in charge of actually carrying out these surveys to get the jobs report numbers, a lot of them are being laid off.
So, there is a massive issue when it comes to the reliability that a lot of people have acknowledged. That being said and obviously you point out the
difference between the headline number.
And then obviously, when you peek below the hood, there are massive discrepancies, that being said, I mean, obviously it is confusing. What
does the fed do with this particular piece of data, do you think? The September rate cut was baked in at this point. I mean, where do they go
from here?
DONOVAN Well, the Federal Reserve has this policy of data dependency. I don't actually think it's a very good policy, because it's very backward
looking, but in the wake of a number like this, the fed is not going to have an incentive to cut rates, not for now. Now, what I think is going to
happen is that as we go forwards, that reluctance to hire new workers on the part of many companies across the United States is going to lead to a
gradual increase in the unemployment rate.
It's going to be creeping up as new people come into the work market. As you graduate from high school, you graduate from college, you are going to
find it harder to get a job, and we've got a lot of anecdotal evidence of this, that it is taking longer for these people to find work.
So that's going to be something which will eventually trigger the fed into cutting rates. But we have to recognize that with a lot of the policy
decisions that have been taken in the States, the economic impact of tariffs, for example, the economic impact of the uncertainty around policy,
the economic impact of the immigration policies, these are not felt immediately.
They're felt with a three-to-six-month delay. So really, the narrative in the second half of this year is what the fed is going to have to be
focusing on how bad do things get?
ASHER: Paul Donovan, that was great analysis. We appreciate it. Thank you so much. All right, services to honor Diogo Jota are being held today,
coming up. We'll see how fans of the Liverpool star are paying their respects around the world, and of course, in his hometown. That story after
the break.
(COMMERCIAL BREAK)
[11:45:00]
ASHER: All right, people are now remembering Diogo Jota at a public wake taking place right now at a chapel in the Liverpool footballers, hometown
of Gondomar, Portugal. A private church wake for the family was held earlier today. Their funeral will happen on Saturday.
So obviously, two brothers passed away, Andre Silva and, of course, Diogo Jota, both brothers who died in that accident on Thursday. I want to go now
to CNN's Matias Grez who joins us live now from Liverpool. I mean, talk to us about the tributes pouring in for this really remarkable soccer player
and human being as well.
MATIAS GREZ, CNN REPORTER: Absolutely, and I'm sure, as you can imagine, the overwhelming emotion here over the last 24 hours has been grief. But if
I just stand to the side for a moment, I'll let you look at all the hundreds and hundreds of tributes that have been laid outside here, outside
Anfield stadium for Diogo Jota.
Scarves, shirts, flags, handwritten notes, and among them, a bunch of flowers laid down by Former Liverpool Captain Jordan Henderson, who came to
pay his respects early this afternoon. It is not just Liverpool fans that have been arriving. We've seen fans in Manchester United shirts coming to
pay their respects.
And I'm sure you can see the blue of Everton flags and shirts dotted throughout the sea of red, two teams, typically bitter rivals, on the
pitch, but Offit, I think it goes to show just how much Diego Jota was loved and respected, not only in Liverpool, but in the wider football
community.
And speaking to Liverpool fans here, of course, it was Diogo Jota success on the pitch that so endeared him to the fans here. He was here for five
years, scored 65 goals, won four major trophies. But really it sounds though, it sounds like Diogo Jota the person was what really resonated with
people at the club and people in the city, a family man, a hardworking man with humble origins, and I think a lot of the fans saw some of themselves
in him.
And the timing of his passing, he was on top of the world, professionally and personally, had only 12 days ago, married his childhood sweetheart and
the mother of his three children, and just weeks before that, had won the Premier League with Liverpool and the nations league with Portugal, which
of course, only makes the timing of his passing all the more tragic.
And if there's one thing amid the grief that has stood out more than anything else when speaking to fans and listening to tributes from former
teammates and players, it's Diogo Jota's smile. And I think that's how fans here want him to be remembered, a man with a broad grin and infectious
personality, and a player who, every time he stepped onto the pitch, gave absolutely everything for the Liverpool -- and for the city.
ASHER: And I absolutely loved what you said, Matias, about Liverpool fans and Everton fans, normally bitter rivals, both of them putting that aside
to come out and pay their respects to this person who really touched so many lives on and off the pitch. Matias, thank you so much for that.
We really appreciate it. Right, Mexican boxer Julio Cesar Chavez Jr. was detained by the United States just days after a high-profile fight with
Jake Paul. Officials say the 39-year-old is in the process right now of being deported. He's being accused of making fraudulent statements on his
immigration application, and say that he has an active arrest warrant in Mexico.
His attorney called the allegations outrageous. Joining us live now from Mexico City, CNN's Valeria Leon. Valeria, what more can you tell us?
VALERIA LEON, CNN CORRESPONDENT: Well, after the arrest of Mexican boxer Julio Cesar Chavez Jr., we're now learning more about his ties with Former
Sinaloa Cartel Leader Joaquin El Chapo Guzman and his family. Chavez Jr. is married to Frida Munoz, who herself was once married to one of El Chapo
sons, Edgar Guzman, but Chavez Jr. also used to post on social media about how close he was with Ovidio Guzman, another son of El Chapo.
[11:50:00]
Now locked on in the U.S. And the Mexican boxer's wife is a U.S. citizen, and according to Homeland Security, Chavez Jr. was applying for a U.S.
resident visa. And during that process, officials said he made false statements, which led to an immediate order for his deportation back to
Mexico.
But yesterday, Mexico's government publicly confirmed rumors that Chavez has an outstanding warrant for arrest issued in 2023 to organize crime and
arms trafficking. And just this morning, Mexican President Claudia Sheinbaum said that she had been unaware of the charges against him until
they were brought to light yesterday afternoon, leading to questions as to why that warrant hadn't been served over the past two years.
ASHER: Right, Valeria Leon in Mexico City. Thank you so much. Up next on "One World", how many hot dogs could you eat in 10 minutes? Oh, my gosh. Oh
gosh, two, three, how about 76 -- I can't even watch this, 76 hot dogs in 10 minutes. Our Harry Enten explains how to win a Hot Dog Eating Contest,
which, by the way, is a fourth of July tradition here in the U.S.
(COMMERCIAL BREAK)
ASHER: All right, we are minutes away from the start of a fourth of July tradition here in New York. Nathan Hot Dogs Eating Contest. The world
record was set by a man known as JAWS. Joey Chestnut -- 76 hot dogs in 10 minutes. Harry Enten usually crunches numbers for us, but today he's
actually crunching hot dogs. It's an assignment he relishes. Take a look.
(BEGIN VIDEOTAPE)
GEORGE SHEA, COFOUNDER OF MAJOR LEAGUE EATING: If I were picking the absolute best physique for a competitive eater, I would say your height,
6.2, maybe 6.3, big shoulders, big frame, but not tight ab. You don't want to be ripped. You want expansion.
HARRY ENTEN, CNN CHIEF DATA ANALYST: Oh, well, then I'm in perfect condition.
ENTEN (voice-over): If you're in my physical shape, then George Shea, the co-founder of Major League Eating, has the sport for you. Shea has been the
host of Nathan's famous fourth of July Hot Dog Eating Contest since 1991. He walked us through the techniques used by the most prominent competitive
eaters.
[11:55:00]
SHEA: Kobayashi, obviously had his own technique of separating out the hot dog from the bun, dunking it in water. And then obviously, Joey Chestnut
has a completely different technique. It's actually a science. Joey is the best at it. He crunches it up in a -- after he's dunked it, and then just
drops it down his gully.
ENTEN (voice-over): He's referring to the OGS of the Hot Dog Eating Contest, Joey Chestnut and Kobayashi.
SHEA: Kobayashi would never beat Joey in the long run because his frame is too small. Joey is a big guy -- one big, so he has that advantage. But on
top of that, he's done this for so long, and he has sort of cream.
ENTEN (voice-over): So how do folks feel about the annual Hot Dog Eating Contest?
UNIDENTIFIED MALE: Joey Chestnut, I'm coming for you.
ENTEN: What do you think of the idea of trying to shove as many hot dogs down in a set period amount of time?
UNIDENTIFIED FEMALE: I think it's hilarious.
UNIDENTIFIED FEMALE: I think they're crazy.
UNIDENTIFIED MALE: No, I love it. I love it.
ENTEN: If you wanted to in a 10-minute period of time, how many hot dogs do you think that you could put down?
UNIDENTIFIED MALE: Three.
UNIDENTIFIED FEMALE: Probably about four.
UNIDENTIFIED MALE: Probably three.
UNIDENTIFIED MALE: 1000.
ENTEN: 1000, that seems like a heck of a lot of hot dogs in 10 minutes. How about you?
UNIDENTIFIED MALE: Probably like 40.
ENTEN: So, the other thing that you do when you're out in Coney Island is to ride the nearly 100-year-old cyclone like I did earlier. Let's take a
listen to how I did. Yahweh, my friend Yahweh --
(END VIDEOTAPE)
ASHER: You know, I normally love hot dogs, but after seeing that, I need a minute. I need a minute before I have one hot dog again, maybe even half a
hot dog again. That was our Harry Enten there, reporting from Coney Island on a very American tradition. There is more "One World" after the short
break.
(COMMERCIAL BREAK)
END
