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U.S. Markets Up After Trump Softens Tone on Powell, China; U.S. Business Activity Slows Amid Tariff Uncertainty; Tesla Posts Lowest Quarterly Sales in Nearly Three Years; Ukraine's Peace Talks; New Media Taking Over WH. Aired 4-5p ET

Aired April 23, 2025 - 16:00   ET

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

[16:00:09]

PAULA NEWTON, CNN INTERNATIONAL HOST: The Dow looks set to hang on to a two-day rally now, and I will say most of the indices off their session

highs, but look a two-day rally, we will take it. Those are the markets and these are the main events.

President Trump's remarkable tone shift on tariffs and the Fed Chair amid signs all the uncertainty is weighing on the real economy.

Tesla shareholders cheer Musk's pledge to pay more attention to the flailing car maker.

And thousands of faithful queue for their chance to bid goodbye to Pope Francis.

Live from New York. It is Wednesday, April 23rd. I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.

And a very good evening to everyone. Tonight, Donald Trump's shift in tone is sparking some optimism on Wall Street. Now, the President says he has no

intention of firing the Fed Chair and he says the administration is actively working to get that trade deal with China.

Now, the softening stance helped fuel a strong rally for U.S. markets, day two, I will add. Now investors are feeling relief as President Trump

continues to talk about progress in trade negotiations. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: Tariff negotiations are going very well. We are dealing with many, many countries.

They all want to be involved with America.

We are going to have a fair deal with China. It is going to be fair.

REPORTER: Are you talking to them actively now?

TRUMP: Actively? Everything is active. Everybody wants to be a part of what we are doing. They know that they can't get away with it any longer, but

they are still going to do fine.

(END VIDEO CLIP)

NEWTON: The President's shift comes after major retail CEOs warned him in the Oval Office of the impact of those policies.

The CEOs of Walmart, Target, Home Depot and Lowe's told Mr. Trump shelves in the United States could soon be empty and that economic pain would

become sharper within weeks.

Kevin Liptak is at the White House for us.

I mean, look, Kevin, we have some data out already that may indicate that that slowdown is beginning. And yet, I've been talking all afternoon about

back to school sales. Right? Those start in July. I am sure that was front of mind for some of those retailers.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yes, I think so and I think it is front of mind for some of the President's own advisers who are

looking at the sentiment and trying to ascertain exactly how this is all playing out, and the news isn't necessarily good, whether it is in, you

know, consumer confidence numbers, but also just in anecdotal evidence on the ground.

And when you hear from the CEO, for example, of Walmart, which is the country's biggest retailer, that his shelves might be empty by the summer

and that already these tariffs have disrupted the supply chains, I think you have to take it seriously and that is probably part of what inspired

the President to say from the Oval Office yesterday that he was willing to cut the 145 percent tariff rate that's in place on China to cut it down

substantially.

And I think you do see the President's advisers, in some ways breathing a sigh of relief. Although we did hear from Karoline Leavitt earlier today

that the president would not unilaterally lower the tariff rate, he would need to see some reciprocal action on the part of China and how that

happens, I think, remains very much unknown.

While the President does say that he is having these active talks with China to negotiate this trade war, he hasn't talked on the phone with

President Xi Jinping. You hear China saying today that their door is wide open for negotiations, but it doesn't appear as if at this point, those

negotiations have started in earnest, and it could potentially take quite a long time for these two sides to come together and come to any kind of

agreement that they can both agree to.

But what I do think is clear this afternoon is that the President is looking for ways to ease up in some fashion, and you see him, you know, at

least in his rhetoric, doing just that.

NEWTON: Yes, and I want to ask you about Scott Bessent and really, the fact that he seemingly has more influence in the Oval Office right now. I know

your reporting indicates that he got into a screaming match with Elon Musk regarding who would head the IRS, and yet, that's indicative of something

larger here, right? Something that's calming the markets if it is true that Secretary Bessent will have more influence.

LIPTAK: Yes, and it seems true for now, and I think that that is an important caveat because whoever has influence on the President is sort of

a revolving sort of carousel of advisers. You know, this week, Peter Navarro might not have the ear of the President, but that's not to say that

he won't be back next week talking to the President about a harder line on tariffs.

And so I do think, you know, when you talk to people on Wall Street, they do see Bessent as something of a moderating force on the President.

[16:05:10]

He is obviously come from the world of hedge funds. He is a soft spoken guy. He is not sort of an outlandish person like Navarro that is why the

President hired him for this job in the first place, is because he appreciated his business acumen, but that's not to say that these clash of

personalities isn't sort of erupting in serious fashion inside the West Wing.

Elon Musk and Scott Bessent are people who have had some bad blood for quite some time. Musk had not been lobbying on Bessent's favor to get the

job of Treasury Secretary back during the transition. This latest dispute was over who was going to run the IRS, the Internal Revenue Service, which

is underneath the Treasury Department.

Musk had put forward his own candidate that Donald Trump appointed to the position of Acting Commissioner, while Bessent was out of the country. That

did not sort of sit well with the Treasury Secretary, and he came back and made his displeasure very well known. I am told that they were shouting

expletives at each other within full earshot of a number of other staffers in the West Wing.

The White House says that this is all part of a normal policy process, that this is all just on the up and up. But, Paula, I think if I was screaming

expletives at someone in the office back at the Bureau, H.R. would probably have something to say about it. it is not really a normal process in any

other kind of workplace.

NEWTON: Yes, and as you point out, if it is politically correct or not, it is influencing policy as we speak. Kevin Liptak for us, thanks so much for

the update from the White House.

And speaking of U.S. Treasury Secretary Scott Bessent, there is an opportunity, he says, to strike a major trade deal with China. He says the

Trump administration wants to rebalance global trade, and that means working with other countries and convincing them to change their practices.

Listen.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, U.S. TREASURY SECRETARY: I wish to be clear, America first does not mean America alone. To the contrary, it is a call for deeper

collaboration and mutual respect among trade partners.

China needs to change. The country knows it needs to change. Everyone knows it needs to change, and we want to help it change because we need

rebalancing, too.

(END VIDEO CLIP)

NEWTON: A Chinese government spokesperson said if the U.S. truly wants a negotiated solution, it should stop threatening and blackmailing China.

Heather Boushey was a member of the Council of Economic Advisers under President Joe Biden. She is now a senior research fellow at Harvard's

Kennedy School, and she joins us now.

Glad to have you here, as we try and parse what the latest news is on trade. I have to point out, there are no negotiations ongoing right now

with China. The door is open, apparently, but no one is walking through it. What are the prospects in your estimation? And in the meantime, what risk

do you think there is for the U.S. economy and beyond?

HEATHER BOUSHEY, MEMBER, COUNCIL OF ECONOMIC ADVISERS UNDER PRESIDENT JOE BIDEN: Well, you've already -- you know, at the earlier part of your story,

you know, you've talked about the risk to the U.S. economy. You know, these tariffs have been implemented in such a chaotic way, and yes, so the

President has said today that they are willing to work with other folks. But will he change his mind? I think he has lost a lot of trust as a part

of any negotiations that he is going to do.

That loss makes it both hard to know where were going to end up. It also makes it really hard for investors, for businesses, for workers and

families across the economy to know what is coming next. You know, where should you be investing? Where will these tariffs end up? Will they -- you

know, will these deals actually happen? These are all questions that, you know, that we are facing across the U.S. economy. It is why the IMF has

downgraded growth projections for this year that just happened recently.

You know, all of this is not painting a good picture for the U.S. economy. And I think that even though the President did speak today, I guess I am

still left with a lot of questions about how he is going to achieve these goals and really, honestly, I continue to wonder what the goal actually is,

because if the goal is to create vibrant industries and better jobs, there is very little that he has done in the past few months that push us in that

direction.

NEWTON: And do you worry that if there is a de-escalation, that's the word of the Trump administration, that everything will be lost for no reason at

all? I mean, the U.S. economy so far has been incredibly resilient. I would say, in the last three years. Can it weather this as well?

And given what you just indicated as well about the IMF, what are the risks to the global economy?

BOUSHEY: Well, I think that there is a big question, you know, how much can the U.S. economy stand? You know, when I was in the White House, we were

focused on making sure that we were building on the strength and the resiliency of the U.S. economy and making sure that we could take on

whatever came next.

And, you know, there was a lot of questions about whether or not there would be a recession and all of that.

[16:10:10]

What I see here is an administration that, you know, the President has said himself, he doesn't care whether or not a recession happens. He doesn't

seem to care whether or not you know, that leads to unemployment for workers across the economy or what that might mean for shortages that may

happen in the short term, or how small and medium sized businesses are coping with the supply chain challenges that they are literally facing

right now, and today you know, we saw small businesses spike.

You know, the number of new businesses created during the Biden years, what will that mean in the coming months and years to come of this

administration? These are all questions that people are asking across the economy. And, you know, you asked about the growth projections, what does

this mean globally? You know, I think what we are all seeing is that countries are trying to figure out how to make do without the United

States.

And, you know, if the U.S. wants to be a good partner and a good negotiator there, the President is going to have to be clear on his goals and using

tactics that can bring people to the table.

NEWTON: Do you think that there has been, though, too much damage done at this point? I want to point out that the Fed Beige Book, which they

anecdotally actually get into every corner and crevice of the economy to figure out what's going on. This was added to the Purchase Managers Index

that came out today, all of this showing business activity in growth now, not a decline, but a decline in growth for the start of the second quarter.

I don't have to tell you that sentiment is clearly depressed there. And yet there were some goals that the Trump administration outlined, right, that

that were achievable, right? Onshoring manufacturing, getting a hold of pharmaceutical manufacturing in the United States.

Do you believe that that is at risk in terms of the goals that the Trump administration had laid out significantly in the campaign, in the first

days of the administration?

BOUSHEY: Well, having worked for an administration where we saw historic investment in the construction of new manufacturing facilities, you know,

we did that. Joe Biden did that through putting in place a host of policies to encourage investment.

You know, certainly trade plays an important role, but there are also you know, a set of policies to encourage people to invest here in the United

States, including, you know, both domestically and international firms coming in, making sure that they have the workers that they needed to have,

making sure that all the different pieces could come together so that that investment could happen.

What I see this administration doing through DOGE and other steps is actually undoing much of that -- much of those supports for domestic

investment, making it harder. And of course, you know, through gutting the National Labor Relations Board there and other steps they have taken across

government, they are making it harder for workers to make sure that those are good jobs that are being created across the U.S. economy.

So when we talk about the goals, it seems that the goal is to punish people or to punish other countries. But what kind of economy are we creating here

domestically? That's the question that we should be asking. What kinds of industries are we investing in? What kinds of jobs are we creating? And are

those the ones that we really need and that Americans want and deserve?

NEWTON: And we continue to await the developments with this Trump administration and this ongoing trade war.

Thanks so much. Really appreciate it.

Now, Elon Musk says he will soon cut back on his work with the Trump administration. Tesla shares jumped after Musk said he will spend more time

with the company. You see it there up a little bit better than five percent. Musk made the announcement during last night's earnings call.

Listen.

(BEGIN AUDIO CLIP)

ELON MUSK, CEO, TESLA: I think I will continue to spend, you know, a day or two per week on government matters or as long as the President would like

me to do so and as long as it is useful. But starting next month I will be allocating far more of my time to Tesla.

(END AUDIO CLIP)

NEWTON: Tesla's automotive revenue, in fact, fell 20 percent in the first quarter. Its Q1 profit plunged 71 percent on the lowest sales in nearly

three years.

Clare Duffy is with us in New York. I mean, Clare, look, this stock does not trade on the fundamentals anymore. If you look at the fundamentals, the

stock should have been down no matter what Elon Musk said. So what are investors and Elon Musk himself, what are their hopes? What do they hope to

turn around in the next few weeks and months?

CLARE DUFFY, CNN BUSINESS WRITER: Well, yes, Paula, I think that the stock reaction is really investors saying it is about dang time for Elon Musk to

say that he is going to be spending more of his time as the CEO of the company that he is the CEO of, rather than with the government, and that

stock price reaction must be because of those comments, because, as you said there, the actual earnings results were not very good.

But this is a company that really has been dealing with compounding crises. You have increased competition in the E.V. market. You have all of the

controversy and attacks related to Musk's work in the government. You have, you know, now tariffs that are going to further undermine this company's

business, and so investors were really, you know, almost begging Musk to come back and spend more time at Tesla and now seem to be happy that he

appears to be planning to do that with him saying that he will be spending more time at Tesla and less time at DOGE starting in May.

[16:15:26]

But it is not actually clear if that is his choice. This Special Government Employee role that he has is only meant to last 130 days per year, so this

may be more that he is getting pushed out of the government rather than coming back to his company by choice. And as you hear him say, there also,

it doesn't appear that he is stepping away from the White House for good. He still said he plans to spend a day or two per week on DOGE matters.

Now, I do think that, you know, investors will be looking for him to figure out how to turn around some of the fundamentals of this business, in

particular, the competition issue.

In just the last few months, we've seen Chinese competitors in the E.V. market really leapfrog Tesla in terms of some of their capabilities. We saw

BYD, you know, announce five-minute charging, I think those are the kinds of things that investors are going to want to see from Musk when he comes

back full time, it is how are they really going to turn things around for this company long term?

NEWTON: Yes, and I can't believe we are using the words "turnaround" at this point when things were so hopeful for Elon Musk and all of his lines

of businesses just a short time ago. It is about dang time, Clare. I'm glad you put a fine point on it, because I think, you know, that's exactly what

so many investors have been thinking at this point.

Clare Duffy for us. Appreciate it.

DUFFY: Thank you.

NEWTON: And we do have some news just in on the trade war. Twelve U.S. states, including New York are suing the Trump administration over those

tariffs. New York Attorney General Letitia James accuses the White House of illegally imposing tax hikes in the form of tariffs. The lawsuit argues

that President Trump did not get permission from Congress to impose the duties, and that the White House broke the law by using executive orders to

do so.

Pope Francis is now lying in state at St. Peter's Basilica. The Vatican says it may extend visits because so many people have come to pay their

respects to the late pontiff. We will have a report from Rome after the break.

(COMMERCIAL BREAK)

NEWTON: The Vatican says it may extend visiting hours for people to view the Pope's body because of a high volume of pilgrims. Francis is lying in

state at St. Peter's Basilica, where he will remain for three days until his funeral.

[16:16:10]

The Pope's body was transferred to the Basilica this morning from the Chapel of Casa Santa Marta. Thousands of mourners witnessed him being moved

through St. Peter's Square.

Ben Wedeman reports on the procession.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): In reverence and respect, the faithful united in tribute to Pope Francis

Wednesday.

From the modest chapel at Casa Santa Marta through the storied streets of the Vatican, Pope Francis' simple wooden coffin, held aloft by pallbearers

and followed by his Cardinals and Swiss Guard in a somber cortege.

The historic procession was welcomed to St. Peter's Square by more than 20,000 people, the Vatican said. The applause of tourists and faithful

following his open coffin as it was moved into the Basilica.

Here, the pope will lie in state before his funeral Saturday. Coffin on the floor, his hands clasping the rosary, a mark of his wish for simplicity in

death, as in life.

After the service, a chance for the faithful to say farewell. Lines of mourners who had queued since the early hours, flooding in.

UNIDENTIFIED FEMALE: Very sad.

WEDEMAN (voice over): Irma Herrera-Recio (ph) and her 80-year-old mother were in the crowds when the Pope appeared at Easter Sunday mass. Days

later, they are back to say goodbye.

IRMA HERRERA-RECIO, VISITING FROM LOS ANGELES: This has been her dream to come to the Vatican, come to Rome and get to see the Pope. We were hoping

we would have him for a while because of all the wonderful things that he did.

LOUIS KEMAYOU, VISITING FROM U.S. VIRGIN ISLANDS: The leader of faithful and men and women of goodwill. So I was so humbled to be among those who

honor that great man.

WEDEMAN (voice over): The Pope's body now back with the flock he loved ahead of his funeral and burial.

Ben Wedeman, CNN, Rome.

(END VIDEOTAPE)

NEWTON: The U.K. says Hong Kong has hurt its reputation by refusing entry to a British MP. Wera Hobhouse says she flew to Hong Kong this month to

visit family and she was detained, questioned at the airport and then sent back on the first flight home. Her husband, meanwhile, was allowed to

enter.

Hobhouse belongs to the Inter-Parliamentary Alliance on China, which has criticized Beijing's record on human rights.

The leader of her Liberal Democrats Party urged the British Foreign Minister to speak out about this.

(BEGIN VIDEO CLIP)

ED DAVEY, LEADER, U.K. LIBERAL DEMOCRATS PARTY: What the Chinese did, they stopped a grandmother visiting her newly born grandson. That is quite

outrageous. And that's why Liberal Democrats are fully behind our great colleague, Wera Hobhouse, and have said to the government and to David

Lammy that they should be calling in the Chinese Ambassador and demanding an explanation. This is unacceptable.

(END VIDEO CLIP)

NEWTON: Meantime, the British government put out a statement warning that the incident has undermined Hong Kong's international reputation and its

ties to the U.K. China's Embassy in the U.K. then defended Hong Kong. It said "Border entry is a matter within a country's sovereignty. The Hong

Kong SAR government has the authority to handle individual cases of entry in accordance with relevant laws and policies. The U.K. side should duly

respect this."

Meantime, a spokesperson for Hong Kong says the government does not comment on individual cases. However, the spokesperson said it is the duty of the

immigration officer to ask questions to ascertain that there is no doubt about the purpose of any visit. The person concerned knows best what he or

she has done. It will be unhelpful to the person's case if the person refuses to answer questions put to him or her for that purpose.

And Wera Hobhouse joins us now.

Good to have you on here as we continue to try and parse what happened here. Hong Kong's response, as you just heard there, was categorical in a

sense, even though it didn't specifically refer to your case, it suggests that if someone refused to answer questions, that that would, in their

words, be unhelpful in terms of being granted entry.

I am curious, what were you asked? How did you respond or did you refuse to respond?

WERA HOBHOUSE, BRITISH LIBERAL DEMOCRATS MEMBER OF PARLIAMENT: Well, no, I was absolutely cooperative. I know not to mess around with Border Control

officers as we know you want entry, so I was polite. I answered all the questions I was asked about the purpose of my visit, which was to visit our

son and his newborn baby, and I wanted to cuddle my grandson for the first time.

I gave my son's address. I gave his residence permit.

[16:25:10]

I was asked about what my son was doing in Hong Kong. He is working at the University of Hong Kong. He is doing research that is funded by the Hong

Kong government. I gave all of these answers.

I was asked for my hotel reservation, which I showed. I was asked for my return flight, which I showed. They had all the information. And indeed I

have said if they could just release a transcript or a tape recording of the interview, then there could be -- and to show the evidence that I

didn't answer any questions, but of course there haven't because I've answered all their questions.

NEWTON: Now, I want to be clear here, the Hong Kong National Security Law of 2020 seeks to, in the words of the law, prevent succession, subversion,

terrorism and foreign interference. I mean, do you see what happened to you as another form of transnational repression? I mean, do you think you are

the first member of the Parliamentary Alliance on China to be denied entry to the U.K.?

I mean, do you believe it has anything to do specifically with what you said as an M.P. in the service to your government?

HOBHOUSE: Well, I have not been at all a particularly outspoken critic of China other than what M.P.s in the U.K. Parliament say about human rights

abuses in China. So I have not been standing out in any shape or form.

I am the first M.P who has been refused entry. There has been in the past five conservative M.P.s and two peers who were put on a blacklist and

warned that there were sanctions, so if they tried to enter Hong Kong, they would be -- or China, they would be refused entry, but I had no such

warnings.

I was visiting my son on a private visit. My husband was allowed in. it is not about my son. It is not about my husband. It is about me as the M.P. I

am a member of the Inter-Parliamentary Alliance on China, but I am no other than any other U.K. M.P.

I represent my country in the way that we are standing up for civil liberties and human rights, but that is all that I can think of. And in the

absence of any further explanation --

NEWTON: You say that's all, but do you believe -- do you believe that's why you were denied entry?

HOBHOUSE: I have no idea in the absence of any explanation, we can only guess. But we need a proper explanation. I do not know why I was denied

entry, and I am seeking answers still.

NEWTON: But do you suspect it was because your work on this committee?

HOBHOUSE: I suspect that I came up as in somewhat on a maybe long list and this is why I am saying, you know, if there is a blacklist of U.K. Members

of Parliament, please release it.

But that the uncertainty is of course, then creating a really chilling effect on everybody because nobody now knows whether they could be

eventually denied entry into Hong Kong if they turned up at border control.

NEWTON: But do you suspect that is the purpose of actually denying you entry?

I mean, China's long arm of intimidation, it reaches right into democracies, whether it is in the U.K. or beyond. We have seen Hong Kong

activists go through this no matter where they are living. What do you think the answer is now? Because it is having a chilling effect.

HOBHOUSE: It does indeed, and I think for us it is a wake-up call. It is a wake-up call for all expats living in Hong Kong, including our son, who

think that they are living in a city that is trying to do business as normal, be open for people and travelers and families. And yet, suddenly

somebody like me is being denied entry that has indeed shown China's repressive politics against anything that they suspect to be critical of

the Chinese Communist Party and what they are doing within their own country.

NEWTON: But what do you believe would change in terms of what you do? Should the Starmer government summon the Chinese Ambassador as your leader

suggests? How would that serve those who are speaking out about China's human rights record? I mean, there is a lot at stake here, including trade,

right, that is on the table between China and the U.K. Given the trade war going on, it is highly significant.

HOBHOUSE: Indeed it is, and the U.K. wants to possibly reset some relationships with China and open up more trading relationships. But if the

political realities are what they have shown up to be in this incident, when I tried to enter Hong Kong, I think should make our government think

twice to have a relationship that is very asymmetric.

NEWTON: All right, we will leave it there for now, Wera Hobhouse, we certainly hope you get to hold your grandchild soon. I know so many Hong

Kong activists as well around the world who are really suffering, unable to see their families at this hour.

Wera Hobhouse for us, thank you so much. Appreciate it.

Now, Donald Trump says Ukrainian President Volodymyr Zelenskyy is hurting peace talks. We will tell you why the U.S. President says Crimea is a major

hang-up. That's next.

(COMMERCIAL BREAK)

NEWTON: Donald Trump says, Ukrainian President Zelenskyy is hurting peace talks by saying he won't recognize Russia's occupation of Crimea. In a

Truth Social post, President Trump says Crimea was lost years ago and is not even a point of discussion. The White House press secretary addressed

the issue just a couple of hours ago.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: President Zelenskyy has been trying to litigate this peace negotiation in the press, and that's

unacceptable to the president. These should be closed-door negotiations. The president's national security team, his advisers, has exuded

significant time, energy, and effort to try to bring this war to an end. The American taxpayer has funded billions of dollars in this effort, and

enough is enough. The president is frustrated. His patience is running very thin. He wants to do what's right for the world. He wants to see peace. He

wants to see the killing stopped. But you need both sides of the war willing to do that. And unfortunately, President Zelenskyy seems to be

moving in the wrong direction.

(END VIDEO CLIP)

NEWTON: Nic Robertson joins us now from London. Two things I want to note there, Nic, one is there was no mention of what Vladimir Putin was doing or

not doing towards peace talks, but there's a significant point there. She talked about what American taxpayers have footed the bill for so far. So,

I'm going to kind of ask what the second question before we get materially to what happened today. If the United States does walk away from the peace

talks, what indications are you getting that they will also walk away from military aid, from any other type of aid and from intelligence sharing?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: The implication is there. Mark Rutte, NATO secretary general, will be in Washington tomorrow.

He'll be meeting with Pete Hegseth, Marco Rubio, secretary of state, and Mike Waltz, the national security adviser. And perhaps there, he'll be

asking that question, because it would be the other members of NATO that would end up footing the bill.

[16:35:00]

The European Union, as a bloc, has contributed more financially than the United States has to support Ukraine so far. And there's no doubt that

without U.S. support Europe would struggle to match in the same way, and Ukraine would therefore struggle on the battlefield. But it doesn't mean

that if the U.S. walks away, and we don't have an answer to your question, but if it is in the negative and that nothing else is forthcoming from the

United States for Ukraine.

Every indication at the moment is that the Europeans are going to try to do what they can to support Ukraine. They've stood back at the negotiation.

You know, and on all this talk we've heard from the White House today, President Trump on his Truth Social berating President Zelensky, telling

him to sign up and we heard the spokesperson there saying that it really was on Zelenskyy and putting the pressure there.

The British defense secretary yesterday in Parliament spoke about his view about who is holding everything up, and the fact that the British defense

intelligence agencies don't believe that it's President Putin here, no surprise, don't believe that President Putin is telling the truth. This is

what he said.

(BEGIN VIDEO CLIP)

JOHN HEALEY, BRITISH DEFENSE SECRETARY: So, while Putin has said he declared an Easter truce, he broke it. While Putin says he wants peace,

he's rejected a full ceasefire. And while Putin says he wants to put an end to the fighting, he continues to play for time in the negotiations.

(END VIDEO CLIP)

ROBERTSON: So, clearly, the Europeans do seem to be in another place than the U.S. administration, and therefore, it kind of makes it more

interesting that Secretary of State Marco Rubio didn't come to persuade his British counterpart, David Lammy of the rightness of the U.S. position as

it appears to be.

You know the reason that was given was that it was a logistical issue and that he couldn't come, but at a time of where the United States really does

seem to want to get this done, I think that raised eyebrows here for sure.

NEWTON: Yes, it must be demoralizing for so many in Ukraine at this hour to see this going on. All right. Nic Robertson, always grateful. Thanks so

much. Now, to Washington where the Trump administration is shaking up the White House Press Corps. Donie O'Sullivan spoke to some of the new faces

who've been invited to cover the president.

(BEGIN VIDEOTAPE)

DONIE O'SULLIVAN, CNN SENIOR CORRESPONDENT: This is my first time in here.

NATALIE WINTERS, CO-HOST, STEVE BANNON'S "WAR ROOM": Well, you're only probably with the most controversial White House correspondents.

O'SULLIVAN: Right.

CARA CASTRONUOVA, REPORTER, LINDELL TV: And I'm actually really good at yelling. because I used to be a ring announcer.

WINTERS: We're all biased, right? We just wear our bias, which I think is a pejorative term to begin with on our sleeves.

BRIAN GLENN, CHIEF WHITE HOUSE CORRESPONDENT, "REAL AMERICA'S VOICE": I mean, there's no doubt about it. I'm pro-Trump. The questions I ask, in my

opinion, are going to help highlight the good things that he's doing for America.

O'SULLIVAN (voice-over): These are White House correspondents like you've never seen before. They're part of the Trump administration's push to bring

so-called new media into the White House.

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: We have a individual in our new media seat today.

O'SULLIVAN (voice-over): Cara Castronuova is White House correspondent for Lindell TV.

UNIDENTIFIED MALE: Go to mypillow.com.

O'SULLIVAN (voice-over): Yes, that Lindell.

LEAVITT: Boys will be boys and --

O'SULLIVAN (voice-over): The new media outlets have full access to the White House briefing room where they ask questions like this.

CASTRONUOVA: Will you guys also consider releasing the president's fitness plan? He actually looks healthier than ever before? Is he working out with

Bobby Kennedy and is he eating less McDonald's?

LEAVITT: I can't confirm. The president is in very good shape.

GLENN: Why don't you wear a suit? Why don't you wear a suit? You're the highest level in this country's office.

O'SULLIVAN: And the characterization that what you were doing asking Zelenskyy that question that you were trolling?

GLENN: I'm not a troll. I never have been. That was a legitimate question. I just wanted to ask. It didn't mean to, you know, get everyone fired up

like they did.

O'SULLIVAN (voice-over): Right now, the brief room, the seats are, you know, big networks up front. You're hoping that that will be rearranged,

that outlets like yourself might have a more prominent seat here.

WINTERS: Definitely. If it were up to me, I'd kick a lot of these outlets out. I view my role here more as sort of reporting on not so much the White

House, but really the media.

O'SULLIVAN (voice-over): Natalie Winters is White House correspondent for Steve Bannon's show "War Room."

WINTERS: Our bias is not to be sycophants for President Trump. Our bias is for our audience, which is the working class of America, the people who

want to put this country first.

O'SULLIVAN: If Trump messes up, will you guys call it out?

WINTERS: Yes, and we have. I think time and time again, particularly on the vertical and issue of immigration. We are not for stapling green cards

to diplomas.

O'SULLIVAN (voice-over): We met the new media correspondents on the day Trump announced tariffs that could upend the world economic order. As other

news outlets reported on the tanking stock market, on Bannon TV, they celebrate it.

WINTERS: This is the first day where a sitting president put America's working class first, and it's a glorious day to be standing here at the

White House and to be able to say that and bring that to you.

O'SULLIVAN: Have the, quote/unquote, "traditional reporters" that are here been hostile to you at all, has --

WINTERS: Well, I think they know better than to come after Natalie Winter's in the "War Room" posse. But it's the looks, the eye rolls, the

conversations that I overhear.

[16:40:00]

O'SULLIVAN (voice-over): They're adjusting to life as part of the White House Press Corps.

O'SULLIVAN: These big tents here is where you have CNN, ABC.

CASTRONUOVA: Right.

O'SULLIVAN: The networks. And you guys are kind off this side here.

CASTRONUOVA: So, we're kind of off to the side, which is what a lot of alternate media is doing right now.

O'SULLIVAN (voice-over): From the protocols --

CASTRONUOVA: There were times when -- at the beginning, when we're standing kind of here, not realizing we're in people shots.

O'SULLIVAN (voice-over): -- to the snack selection.

CASTRONUOVA: And then, this is off topic. The vending machine is full of junk food, and I'm a big MAHA person. I almost ate a Beef Slim Jim

yesterday. I was desperate.

O'SULLIVAN: Do you consider yourself a journalist?

WINTERS: Yes.

O'SULLIVAN: Tell me --

WINTERS: It seems like you took a little pause to process that.

O'SULLIVAN: No, I mean --

GLENN: But I think we all should have a seat at the table. I really do. And if you -- the very first week she did the new media, it was Axios. And

Axios, by no stretch of imagination, is a conservative new media.

O'SULLIVAN (voice-over): But while not all new media here are MAGA media, a lot of them are more cheerleading President Trump than challenging him.

O'SULLIVAN: You are a Trump fan, right?

CASTRONUOVA: Yes, I'm definitely a supporter of President Trump.

O'SULLIVAN: So, will you be able to hold them to account then and call them out?

CASTRONUOVA: I would, I will be able to hold, a hundred percent, him to account. You know, there's -- I'm sure things that will happen that I

disagree with and I have said plenty of times, you know, on the record when I've disagreed with his decisions.

O'SULLIVAN: Is there anything so far in this administration you've disagreed with?

CASTRONUOVA: I'm not going to -- let me put some thought into that for a second. I'm just overwhelmed -- like just overwhelmed with how well I

perceive things to be going.

O'SULLIVAN: But to the people, and I'm sure you see this online every single day, who say, you don't deserve to be here because you're not a real

journalist, what's your response to them?

WINTERS: Well, I'm pretty sure the group of people in there spent, what was it, four years covering for someone who was essentially dead, and

that's being charitable. In my description of him, a president by the name of Joe Biden.

So, to all those people who are apoplectic over having new media voices, you guys fail. And that's why we're here.

(END VIDEOTAPE)

NEWTON: Fascinating, isn't it? Our thanks to Donie O'Sullivan for bringing us that report. And that is "Quest Means Business" Up next "Marketplace

Europe."

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[16:45:00]

END