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Quest Means Business
Gaza Health Ministry: 138 People Killed In Israeli Strikes; Trump To Sign Sweeping Domestic Policy Bill Into Law; Trump: Countries Will Begin Being Notified Of U.S. Tariff Rate; Liverpool Fans Leave Tributes To Spar Player Diogo Jota; Canada-U.S. Border Protections In The Donald Trump Era; Mexican Boxer Detained By ICE Days After Jake Paul Match; Gristedes CEO Threatens To Close Stores If Zohran Mamdani Is Elected New York City Mayor; Long-Awaited Oasis Reunion Tour Kicks Off In Wales. Aired 4-5p ET
Aired July 04, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:18]
PAULA NEWTON, CNN INTERNATIONAL HOST: So U.S. markets were closed for the Fourth of July holiday. There you have Europe, though. CAC 40 down a
percentage-and-a-half as Europe continues to await a possible trade deal with the United States. Those are the markets and these are the main
events.
An hour from now, that Big, Beautiful Bill will become the law of the land as President Trump prepares to sign it into law.
A night of terror in Ukraine. Russian missiles hit more than a dozen locations right across Kyiv and the rest of Ukraine.
And New York mayoral candidate, Zohran Mamdani says he will tackle soaring grocery prices with city-run supermarkets. I will speak with the CEO of a
grocery giant who is threatening to close his stores if Mamdani gets elected.
Live from New York. It is Friday, July 4th. I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.
And so we do begin with breaking news. Hamas has announced on Friday that it has submitted a positive response to a proposal for a 60-day ceasefire
in Gaza, opening the path toward a deal to halt the conflict after months now of failed efforts.
Israel, meanwhile, is keeping up deadly strikes on Gaza as it waits to see how Hamas responds to that ceasefire proposal. Gaza's Health Ministry says
138 people have been killed in the past 24 hours alone. U.S. President Donald Trump says he expects a Hamas response and he does appear to have it
and should have it in the next few hours.
Israel has agreed to the necessary conditions for a ceasefire. This comes ahead of Prime Minister Benjamin Netanyahu's visit to the White House next
week.
CNN's Oren Liebermann is following all of this for us from Jerusalem, and he has the very latest. Oren, what more are we learning now that Hamas has
formally responded?
OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF AND CORRESPONDENT: Paula, this is now a major development. Hamas has responded positively here to the
latest ceasefire proposal. This is what President Donald Trump was waiting for. He said it would take 24 hours. It took almost that entire time, but
Hamas has now responded positively. I will read you a short bit of effectively a two-line statement they put out just moments ago. This is the
key line here: "The movement has delivered its response to the brothers mediating, which was characterized as positive. The movement is fully ready
and serious about immediately entering a new round of negotiations on the mechanism for implementing this framework."
The key word there is "positive." It is an acceptance of the framework for these negotiations and for a 60-day ceasefire proposal. It does not mean
the ceasefire starts immediately and this is crucial.
What is expected to happen now is that Israel and Hamas will enter what are called proximity talks. That's where negotiators effectively shuttle back
and forth between the two sides, either in Cairo or in Doha, to hammer out the final details of the agreement. And when those are concluded, and those
can potentially move quite quickly, that would mark the beginning of the ceasefire.
The timing, of course, is significant. Israel had accepted the deal on Tuesday. The deal put forward by Qatar as the latest proposal. Prime
Minister Benjamin Netanyahu will leave for the united states this weekend and will meet with President Donald Trump in Washington on Monday.
Trump, of course, likely to hail this ceasefire as part of the work he, the U.S. and Qatar and Egypt have put in to get to this point. Again, there is
still work to be done in those proximity talks, so this is not a done deal yet, but this is a major step forward to get to a ceasefire after some 630
days or more of war, nearly 21 months at this point, including days now in which we've seen scores of Palestinians killed in deadly strikes carried
out in Gaza.
So this, a major step towards the ceasefire that negotiators have been working very hard on, but hadn't yet been able to get to, and here we are
in what is potentially some of the last stages to get to a ceasefire here - - Paula.
NEWTON: Now, Oren, obviously we know your caution there, and obviously for good reason, but tell us what may have propelled this over the line to the
point where we have Hamas saying, look, in our estimation, this is positive.
LIEBERMANN: So there were a few big changes here. The broad brush strokes of the agreement are largely the same as what we had seen, 60-day
ceasefire, 10 living hostages, 18 deceased hostages that will come out in exchange for Palestinian prisoners and detainees, more aid going in.
[16:05:14]
But there are some critical differences here. First, instead of the living hostages coming out within the first week or so, it is much more spread
out. According to what we have seen from sources familiar with the negotiations, eight living hostages will come out on the first day of the
ceasefire, two more will come out on the 50th day, and then the deceased hostages will come out throughout the ceasefire as well, including the
final eight coming out on day 60. That was for Hamas, as a guarantee that Israel wouldn't break the cease fire early.
The other key development here was that Hamas was looking for some stronger guarantee around getting from a temporary ceasefire to a permanent end to
the war, something Israel had refused to agree to. Hamas wanted stronger language to that effect.
And we have seen at least some of that, it is not a guarantee of an end to the war, but the latest language we have seen says that negotiations for a
permanent ceasefire will begin on day one, and they will continue and even if they aren't concluded by day 60, by the end of the timeline set forth
here, the ceasefire will continue and negotiations will continue.
And crucially, at least according to the language we have seen, it is President Donald Trump who will help to ensure that the ceasefire remains
in place, and that's a key element here. Hamas was looking for stronger language around an end to the war.
One of the key differences here, just from an Israeli political perspective, is that Netanyahu, following his -- what he sees as his
victory over Iran in that 12-day conflict, politically, he had much more room to maneuver here and was able perhaps to go or at least consider the
possibility of a permanent end of the war and that's what has brought us to this point.
NEWTON: Yes, that personal guarantee, of course, from President Trump, interesting. And again, hopefully a measure of optimism, not just for those
in Gaza, but obviously for the hostage families.
Oren Liebermann, very grateful to you for being on top of this story. Appreciate it.
Now, in just one hour, U.S. President Donald Trump is set to sign his sweeping domestic policy bill into law. Mr. Trump is holding the ceremony
at the White House. He successfully pushed for the bill to be sent to his desk by the July 4th holiday. It passed the House Thursday in a vote
largely along party lines.
The law will lower taxes and reduce spending on social programs. It also increases the budget for the military and immigration enforcement.
Kevin Liptak, our steady pair of hands there at the White House, including on this July 4th. This is, in fact a victory lap for the President, right,
in terms of what he was hoping for. I will add, though, that the law remains unpopular with at least half of Americans, if not more. How does he
plan to see this through?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yes, and I think you're absolutely right. Today is the victory lap, but it is also the kickoff in a
lot of ways of this effort to sell the bill to a very skeptical American public.
Today will be all about the celebration. He has kind of co-opted the traditional July 4th picnic on the South Lawn, which is a celebration of
American independence and turned it into a celebration of this major political victory.
And, you know, we've been able to hear the bands practicing all day. You can hear -- I'm sorry, you can smell the hamburgers and hot dogs on the
grill for this big crowd that he is expecting. It will be punctuated by a flyover of those B-2 bombers that dropped the bunker busters on Iranian
nuclear facilities last month, which I do think kind of underscores this string of successes that the President has had over the last two weeks,
whether it is in Iran, at the Supreme Court, at the NATO Summit, now in Congress, the President really, I think consolidating power in a way that
has really put him in a position to get a lot of the things that he wanted to get done, done.
But, you know, the sales pitch, I think could be a difficult task going forward. THE recent American history, at least, is sort of littered with
presidents who used their congressional majorities to get through these major pieces of legislation, only to come and regret that they didn't do
more to sell it to the public when those majorities were lost in the midterm elections.
And the President does have his tasks sort of cut out for him. You know, Democrats have already begun in earnest their attempts to frame this bill
as stripping away benefits from poorer Americans in order to pay for tax cuts for wealthy Americans, and they have numbers and analyses on their
side.
You know, the Congressional Budget Office has suggested that almost 12 million Americans could see their health coverage stripped away. There are
a lot of other analyses that have the number a little bit higher than that. You also have the CBO saying that it would explode the deficit by $3.3
trillion.
And so the numbers, I think, for President Trump are not on his side. His hope is that when these tax cuts go into place, a lot of Americans will
start feeling the benefits, and the way this bill is structured is that the tax cuts go into effect before the cuts to the social safety net. That was
very intentional on the part of the Republicans to try and sort of gain support in Americans in sort of their households and their budgets before
those cuts are really felt.
[16:10:16]
And so I think, you know, President Trump is sort of the consummate political salesman, but there is a question of how interested he is in
helping Republicans get this across the finish line. He has always been more interested, I think, in his own legacy and his own policies than the
broader political fortunes of the Republican Party.
And so I think it will remain to be seen exactly how he plans to go about this over the months and year ahead.
NEWTON: And, Kevin, before we let you go, given the breaking news on what possibly might be a ceasefire deal, obviously President Trump will take
credit for that as well.
LIPTAK: Yes, and I think, you know, you have seen the President really try and press the Prime Minister, Benjamin Netanyahu, to try and come up with a
resolution in Gaza. Netanyahu will be here at the White House on Monday, and we had heard from the President that he planned, in his words, to be
very firm with Netanyahu about trying to bring a resolution to the conflict there.
This has been something that has been in the President's sort of sights for quite a long time when he ordered up that bombing run on Iran. The real
hope that he had is that maybe that that would be enough to cause Netanyahu to sort of back off on the Gaza war, to sort of view that his objectives
had been realized in the broader conflict, and maybe use that as an opportunity to bring that conflict to an end.
The President, in his mind, thinks that that will be the key to unlocking this much bigger process in the Middle East of normalization, in his mind,
the sort of crown jewel of that would be diplomatic relations between Saudi Arabia and Israel, which would, in the end transform that entire region.
This, in his view, I think, is the first step towards that very much in the President's sights as he prepares for this meeting with the Prime Minister
on Monday.
NEWTON: Exactly. No doubt, a consequential week to come. Kevin Liptak again, wishing you a Happy Fourth and a good weekend. Appreciate it.
Now, Donald Trump says he is going to begin sending out letters notifying countries of the tariff rate they'll face. The U.S. President says all
trading partners should be notified by the time his tariff pause expires next week.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: I think by the ninth, they'll be fully covered and they'll range in value from maybe 60 or
70 percent tariffs to ten and 20 percent tariffs.
(END VIDEO CLIP)
NEWTON: So Mr. Trump says the new tariffs will go into effect August 1st. When asked if countries would be given flexibility with that deadline, the
President said not really.
Anna Steward is in London. And Anna, you do in fact have some news about how those E.U. negotiations are going.
ANNA STEWART, CNN REPORTER: So we know that the E.U. Trade Commissioner was in D.C. yesterday speaking to his counterparts, Maros Sefcovic and we
waited last night, late into the night waiting for some sort of readout as to how that went and we really got nothing at all.
The official line from the E.U. today is that talks are likely to go through the weekend, and this is, "a sensitive phase of negotiations." But
we've got a little bit more intel from an E.U. diplomat speaking to CNN on the condition of anonymity, which was interesting. They said on the plus
side, both sides at this stage are negotiating constructively and intensely, and this is something that we haven't actually had for some
weeks. Both sides, early on in negotiations, accused each other of sort of dragging their feet through the process.
He says, it is unclear whether an agreement will be reached at this stage, and what happens if an agreement isn't reached in terms of that tariff
level. Does it revert back, for instance, to 20 percent where it was on so- called Liberation Day?
And a really interesting point was, they say while the E.U. is working towards the lowest possible tariffs, they say the U.S. is still willing to
impose some substantial tariffs on a number of sectors, while showing openness on some others, and this is where it gets really interesting
because the E.U., of course has a number of sectors to worry about.
There's cars which currently has a 25 percent tariff. There's steel and aluminum which has 50 percent, and there are also sectors that have been on
the sort of target list, but haven't been specified yet.
Pharmaceuticals, that would hit Ireland; wine, Agrifoods of course, a big one for France and Italy. And that brings you to that point of while the
E.U. has to, you know, show unity when it goes into these talks, at the end of the day, it is representing 27 member states who actually all have quite
different interests.
Some countries do have a huge trade surplus with the U.S., some don't. Some, like Germany, are very reliant on cars industry, some aren't. And the
final point we had from the E.U. diplomat just said, should they reach a deal at all cost? That is the big question. At what point -- where is the
red line for the E.U. in terms of whether it will say, no, this isn't going to work and we will accept a new tariff rate and will bring in
countermeasures, which they have actually already discussed.
But that's the big question. Talks through the weekend, I think -- Paula.
[16:15:12]
NEWTON: Yes, those are likely needed given the fact you have to wrangle so many countries and so many competing industrial interests.
Anna Stewart for us, as always, thank you.
Now, coming up, President Trump spoke to several world leaders after saying he is disappointed in his words in Russian President Vladimir Putin. That's
next.
(COMMERCIAL BREAK)
NEWTON: U.S. President Donald Trump did indeed start his Fourth of July on the phone. He spent the early hours of the holiday speaking with world
leaders about Russia's war in Ukraine. Mr. Trump spoke to French President Emmanuel Macron and Ukrainian President Volodymyr Zelenskyy. A day earlier,
he spoke to German Chancellor Friedrich Merz.
Now, the Zelenskyy call follows a Trump call with Russian President Vladimir Putin on Thursday. Afterward, the U.S. President said he was
disappointed, saying the Russian leader didn't seem interested in peace.
Trump's flurry of calls follows a devastating night for Kyiv. Ukrainian officials say Russian missiles hit more than a dozen locations right across
the capital, wounding eight people.
Nick Paton Walsh has our report.
(BEGIN VIDEOTAPE)
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (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. Huddling in basements to. 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 capital's 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 Russian ballistic missiles is at best in doubt. 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.
TRUMP: I'm very disappointed with the conversation I had today with President Putin, because I don't think he is there. I don't think he is
there and I am very disappointed. Well, it is not -- I am just saying I don't think he is looking to stop and that's too bad.
[16:20:14]
WALSH: Among the smoldering remains of civilian world terrorized, Ukraine's Foreign Minister claimed fragments of a Goran 2 combat drone were found,
made in China. The growing global footprint of a war where Kyiv's daylight is dark and stilled by the smoke of the night before, and where the damage
done is measured in intimate, personal loss.
Hear what that feels like for those whose broken homes lie in pieces around them.
(UNIDENTIFIED FEMALE speaking in foreign language.)
TRANSLATION: Today's attack is the most terrifying attack in the three-and- a-half years that this war has been going on. There is no info that he (Putin) will launch 700 to 800 Shahed drones. I'm sorry, but neither we,
nor our air defense can withstand it.
(UNIDENTIFIED FEMALE speaking in foreign language.)
TRANSLATION: Today, the drones were flying like swarms of bees. It was such a horror. It is a great horror. Let all Americans know how we live here,
how we suffer. It's very scary when people are left with nothing.
(UNIDENTIFIED FEMALE speaking in foreign language.)
TRANSLATION: It's very scary. And there are small children. Right now, there is no gas, no electricity. We have practically no hope left for
America. Our only hope is in our own people.
WALSH (voice over): Nick Paton Walsh, CNN, London.
(END VIDEOTAPE)
NEWTON: Joining me now is Tymofiy Mylovanov, pardon me, Ukraine's former Minister of Economic Development, Trade and Agriculture, and it is good to
see you again.
Before we discuss the state of the conflict, can you tell us what last night was like for you in Kyiv? And what your fears are? As you're there,
it is 11:20 P.M., right in Kyiv? You're approaching another night.
TYMOFIY MYLOVANOV, UKRAINE'S FORMER MINISTER OF ECONOMIC DEVELOPMENT, TRADE AND AGRICULTURE: Well, the new attack is here. And while I was waiting on
the call, I can hear explosions outside. So maybe even during this couple of minutes that we will be talking, you can hear it.
So I slept where I am. now and there is this sound, buzzing sound of drones and then explosions after that. And then later in night, closer to sort of,
you know, early morning, their ballistic missiles and, you know, I am -- you know, I know I survived. I kind of, you know, but what can you do about
it? You know, you just get through it.
NEWTON: It has been just such a long endurance race for so many people there in Kyiv in literally one of the largest attacks that the war has
known. Given that, what do you make of all the recent diplomacy or lack thereof? Russia has been ferocious, as we were saying, in its attack. And
that was just hours after getting off the phone with President Trump.
MYLOVANOV: Oh, yes. Absolutely. The timing is conspicuous. You know, Putin is sending a finger to everyone. You know, you see, President Trump is
extremely frustrated. There is of course, some conspiracy theories in Ukraine that is sort of which I don't subscribe and majority don't
subscribe to. But, you know, people are frustrated. They have sleepless nights and they are saying, you know, are we being forced to surrender? You
know, do we have to go into this new gulag camps that they are setting up, you know, torture that we hear about, you know, in those stories of people
who are in occupied territories.
So, you know, people are really, really worried and this recent news of a stop of Patriot missiles, you know, they were in Poland. The shipment was
stopped, that adds to the aggravation.
The fact that President Trump and President Putin made no progress is all so upsetting. So, you know, it is a difficult time. And I think Ukraine
will stand, but people will die.
NEWTON: Blunt and obviously absolutely true for everyone living through this in Ukraine.
And his call with President Trump, President Zelenskyy said that the two of them discussed working together to strengthen protection of our skies. Do
you believe this is genuine, or that the White House is perhaps stalling like Putin is stalling, especially in cooperation with things like, you
know, again, those patriot missiles?
MYLOVANOV: Well, I don't think, you know, the administration is homogenous. You know, I have been in politics. I've been in negotiations, including
with the United States, with the previous administrations. And, you know, there are people with different opinions and there is constant back and
forth and I think that's what -- I guess, I would think that something like that is happening.
You know, there are different discussions and some people have a position that Ukraine has to be supported, others have a position that we will end
the war sooner. If we stop supplying weapons to Ukraine, I think it is a mistaken position, misinformed position, basically because people
underestimate what Putin will do.
And if Ukraine falls, I don't think it will happen, but Ukraine never falls, that will be a disaster for European security and then for the
United States, too.
[16:25:22]
NEWTON: You know, so far the United States has not only refused to impose new sanctions on Russia, POLITICO is reporting that Trump envoy Steve
Witkoff says sanctions against Russia should actually be lifted, at least the energy sanctions.
You know, in your estimation, given your former position in government, how effective could the sanctions be if the U.S. decides to actually go ahead
with some of these secondary sanctions, or at least enforce the ones that are already on the table?
MYLOVANOV: So it is -- you know, it is a half empty, half full glass story. Sanctions have not been as effective as they could have been, potentially,
let's say the Biden administration imposed them right away, once Putin started the invasion. You know, it is a salami tactics a little bit over
time, the escalation management, that didn't really work out, but it worked somewhat.
And it denied, you know, hundreds of billions of dollars of revenues to Russia, which means the Russian Defense Industry didn't have those hundreds
of billions. Now, could secondary sanctions work to push Russia to the table? Absolutely.
I think, they can, but it requires political will and coordination across multiple countries, which is difficult but possible.
NEWTON: Okay, Tymofiy Mylovanov, thank you so much. We wish you some measure of peace in the hours to come, as, as you say, it looks likely
again that there will be some kind of assault by Russia. Appreciate it. Thank you.
MYLOVANOV: Thank you.
NEWTON: Now, still to come for us, the Mexican boxer who just had a major fight in the U.S. has been arrested by immigration officials. Details on
why the U.S. intends to deport him.
(COMMERCIAL BREAK)
[16:30:17]
NEWTON: Hello. I'm Paula Newton and there's more QUEST MEANS BUSINESS in a moment when New York mayoral candidate Zohran Mamdani is promising city run
grocery stores. I'll speak to a CEO who is threatening to close his supermarkets if that happens.
And Oasis has kicked off its reunion tour in Wales as we speak, that's going on, the band is performing for the first time since 2009.
Before that though, the headlines this hour.
Hamas says it submitted a positive response to a proposal for a 60 day cease fire in Gaza, opening the path toward a deal to halt the conflict and
free hostages.
As news trickles out and a potential truce, Israel is keeping up deadly strikes on Gaza. Gaza's health ministry says 138 people have been killed in
the past 24 hours alone.
Now, in about 30 minutes from now, President Trump is set to sign his massive tax and spending bill, narrowly approved along party lines by
Congress on Thursday. It cuts funding for safety net programs like Medicaid and boost spending for immigration enforcement.
The Congressional Budget Office estimates the bill will raise the national debt by more than $3 trillion over the next decade.
And Joey Chestnut is once again the winner of Nathan's Famous Hot Dog Eating Contest. He downed 70-1/2 hot dogs in 10 minutes to win his 17th
title. Chestnut was welcomed back to Coney Island after a one year absence for having endorsed plant based Impossible Foods.
An outpouring of grief and emotion today as Star Liverpool football player Diogo Jota is remembered alongside his brother Andre Silva. The siblings
died in a car crash in Spain on Thursday in Jota's hometown of Gondomar, Portugal, a private wake was held today before being open to the public.
And in the U.K., fans are leading tributes to Jota outside Anfield Stadium. Matias Grez reports now from Liverpool.
(BEGIN VIDEOTAPE)
MATIAS GREZ, CNN SPORT REPORTER (voice over): The city of Liverpool, a place defined by its fierce football rivalry, united today in grief, fans
of both Liverpool and Everton gathering outside Anfield Stadium today to mourn the loss of Diogo Jota, the 28-year-old forward who died in a car
crash in Spain, alongside his brother Andre Silva on Thursday.
Everton players arrived carrying wreaths, applauded by supporters gathered at the stadium. The club was represented by two of their Portuguese
players, a powerful gesture that transcended rivalry and showed solidarity from across the city.
Tributes continued to grow at the stadium on Friday, with fans leaving shirts, scarves and handwritten notes thanking jotter for his passion and
commitment.
Among the sea of red, a soul blue Everton shirt, a sign of respect that cuts across allegiances.
UNIDENTIFIED MALE: I support Everton. I work with a lot of colleagues and work who support Liverpool. And obviously it's just like, touch the city as
well. Like, you know, sort of like Everton and Liverpool fans. It's just a really, really sad day. Yesterday, emotional and obviously, like, you know,
I'm a football fan, and it touches everyone.
UNIDENTIFIED FEMALE: It's just a tragic, he's only 28. It's just (INAUDIBLE).
UNIDENTIFIED FEMALE: Number 20, it's so mean so much this guy make Liverpool get to top the league and champion.
GREZ (voice over): Former Liverpool Captain Jordan Henderson was seen in tears as he laid flowers paying his respects to a player he once led on the
pitch.
On social media, tributes have flooded in from around the world. Jota's Liverpool teammate Mohamed Salah wrote, it's going to be extremely
difficult to accept that Diogo won't be there when we go back. They will never be forgotten.
GREZ: Here at Anfield, the sense of shock remains raw. Fans and players alike remember Diogo Jota, not only as a brilliant footballer, but as a
devoted family man and a beloved teammate.
The message is clear, he will always be Liverpool's Number 20, and he will never walk alone.
GREZ: (voice over): Jota and his brother died after their car veered off the road and caught fire in northwestern Spain early on Thursday morning.
Spanish authorities say a burst tire while overtaking may have caused the crash.
In Portugal, a private wake for close family and special guests was held this morning at a chapel in Gondomar attended by Jota's agent Jorge Mendes,
Portugal's Prime Minister Luis Montenegro and Jota's mother and father.
[16:05:15]
A public wake open this afternoon, allowing fans and the local community to say their goodbyes. A funeral will take place tomorrow morning.
(END VIDEOTAPE)
NEWTON: Our thanks for Matias Grez for that report.
Now, U.S. Immigration officials arrested Mexican boxer Julio Cesar Chavez Jr. on Wednesday, and it comes days after he fought social media influencer
Jake Paul in a high profile bout in California.
Now, the Department of Homeland Security says Chavez Jr. is in the process of being deported from the U.S. over alleged cartel ties and other
infractions.
CNN's Valeria Leon has been following this story, and she joins us now from Mexico City. Valeria, what more are you learning? Because there is
certainly a dispute as to why he is being arrested.
VALERIA LEON, CNN CORRESPONDENT: Yes, Paula, and we've seen how these videos of the moment of his detention went viral, showing the Mexican boxer
Julio Cesar Chavez Jr. in chains. And Chavez's lawyer claimed the U.S. government is using him as a prop for anti-immigration policies, arguing
that with the Trump administration's focus on deporting undocumented immigrants, this is just one example.
But Chavez's story doesn't end in the ring. Earlier this year, he was arrested in the U.S. for illegal possession of a ghost gun, a weapon made
with a 3D printer that can go undetected at security checkpoints.
At that time, his father, Julio Cesar Chavez Sr. celebrated when a judge cleared him of charges, saying it was a tunnel with no end.
But now once again, that tunnel seems to have darkened after Mexico's government publicly confirmed that the Mexican boxer Julio Cesar Chavez Jr.
has an outstanding warrant for arrest issued in 2023 for alleged ties to organized crime.
But surprisingly, this morning, Mexico's president Claudia Sheinbaum said that she had been unaware of the charges against him in Mexico until they
were brought to light by the U.S. government yesterday afternoon, leading to questions as to why that warrant hadn't been served over the past two
years.
After the arrest of the Mexican boxer, 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.
Chavez Jr. also used to post on social media about how close he was with Ovidio Guzman, another son of El Chapo now locked up in the U.S.
The Mexican boxer's wife is a U.S. citizen, and according to Homeland Security, Chavez Jr. was applying for a US 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 federal agents in the U.S. arrested Chavez Jr. in Studio City in California on charges related to this Mexican arrest warrant and to being
in the U.S. illegally.
But even though his visa expired on Friday, just one day before he fought American boxer Jake Paul, he wasn't deported. It was three days after the
fight when U.S. Marshals arrested him, so he fought while in the U.S. illegally. Nobody stopped him until after the event, and now he's in the
process of being returned to Mexico in the coming days, and we'll see how these -- he deals with these legal charges once he's back in Mexico.
But this case leaves Mexico's international public relations with a black eye with yet another public figure being linked to the drug trade, Paula.
NEWTON: Valeria Leon, thank you. Appreciate the update on that story as well.
Now, the Republican sweeping spending package includes a huge boost for funding for immigration and border security, and it devotes $170 billion
for what President Trump vows to be the largest deportation operation in U.S. history. The money will be used to fund detention centers, hire more
immigration officers and build a border wall.
Meantime, Canada is ramping up security measures along its border with the United States, and they include heightened patrols and billion dollar
upgrades.
I went to take a look for myself at Canada's new approach to border security in the era of Donald Trump.
(BEGIN VIDEOTAPE)
NEWTON (voice over): We are at the Peace Bridge on the world's longest international border, more than 5,500 miles separating Canada and the U.S.
by land and water.
[16:40:10]
Here on the Niagara River between Fort Erie, Ontario and Buffalo, New York joint patrols, Canadian and American law enforcement on the water, keeping
an eye on both sides of the border.
NEWTON: And that is the U.S. Coast Guard ship. Now, the joint patrols between Canada and the United States, that's not new. What is new is the
approach on the Canadian side of the border.
CHRIS LEATHER, CHIEF SUPERINTENDENT, RCMP: Since the new U.S. administration came into power, we have had a paradigm shift here in Canada
in terms of our law enforcement posture. There's no question.
NEWTON (voice over): Canada is putting its money where its border is, a billion dollars more, launching drones.
UNIDENTIFIED MALE: So, it opens up a whole new world to us, as far as detecting criminality.
NEWTON (voice over): Adding more radar and thermal imaging.
UNIDENTIFIED MALE: And what it's able to do is pick up heat signature.
NEWTON (voice over): A more robust presence everywhere. Why now? Call it the Trump effect.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The fentanyl coming through Canada is massive.
NEWTON (voice over): And so, President Trump imposed punishing tariffs, even though U.S. data show less than one percent of fentanyl seized at the
U.S. border comes from Canada.
But Canada's own intelligence shows organized crime, including gangs from Mexico are producing more fentanyl and other drugs in Canada for export to
the United States and elsewhere, also expanding their footprint to launder money as well.
NEWTON: Was the president on to something here?
LEATHER: The president and our -- and our government, I think it's safe to say have agreed that we can do more collectively to secure the border, and
we have regular members out to the border in uniform, on patrol, which is something say, a year ago, we weren't doing.
NEWTON: Do you worry about what you don't find in cities?
ABEID MORGAN, DIRECTOR, INTELLIGENCE AND ENFORCEMENT, CANADA BORDER SERVICES AGENCY: That's always a concern, and that's really where it comes
down to working closely with our law enforcement partners.
NEWTON (voice over): From fentanyl to firearms, the Canada Border Services Agency says the president's scrutiny has led to more resources and
intelligence sharing on all kinds of smuggling.
Canines like Quanta (ph) now trained to sniff out everything from drugs to guns. While the world's longest border may still be undefended, on Trump's
urging and threats, it is now better protected.
(END VIDEOTAPE)
NEWTON: Still to come for us, we talk to the supermarket mogul threatening to close his stores if New York elects Zohran Mamdani as the next mayor.
(COMMERCIAL BREAK)
[16:45:24]
NEWTON: Democrat Zohran Mamdani is now the party's official candidate for New York City mayor, and one of his big plans is to create a network of
city owned grocery stores, one in each borough, in fact, in both New York and the nation. The price of groceries has soared since the pandemic, and
in some New York City neighborhoods, as many as one in three people report being food insecure.
My next guest is John Catsimatidis, and he is CEO of New York based supermarket chains Gristedes and D'Agostino and the CEO of Red Apple Group.
He's also a former Republican candidate for mayor. We should mention that who is threatening to close his stores if Mamdani is elected. And I thank
you for being here, and Happy Fourth of July to you.
JOHN CATSIMATIDIS, CEO, GRISTEDES: Well, thank you for having me. And you know, it's interesting what's going on in New York right now. You know, our
country overall has been systematically taken in many respects. Chicago is a vast problem and San Francisco is a vast problem. And the next step is to
take over New York and the people that have common sense. I'm not going to allow it, I was in Havana in the 1990s.
NEWTON: OK, but before we get to politics, allow us to get to food first. Now, New Yorkers have often complained that groceries are just far too high
priced. You know that as well as anyone knows that. Some of them can't get even fresh fruit and vegetables at a reasonable price. You're saying City
Hall would put you out of business, though? Why?
CATSIMATIDIS: No, I'm not saying City Hall will be put out of business, but what he wants to do doesn't make any sense. I've seen Fidel Castro say the
same thing. I've been in Havana, and it doesn't make sense to open up stores and what are you going to do? Just give it away.
I mean, this New York City is the head of capitalism in the world. So, we're either in business to be in business. And you know, I came to the
United States as an immigrant from the -- from Greece, and I worked 70 hours a week, I believe in immigration. I worked with Lee Iacocca on the
Ellis Island Foundation. We believe in immigration, but we do not believe in invasion.
In other words, we want people to come to the United States that swear allegiance to the United States of America. Love the way our life.
NEWTON: Right, but we're not -- I don't -- I don't -- again, we're not talking about immigration. I want to talk about the price of food, and if
we can just show again something that we had earlier that that it's very high, and New Yorkers know it's very high, but it's also high compared to
the rest of the country.
So, food between -- it's gone up quite a bit. We're showing it now. You know, you can't see it, but food inflation in New York City Region versus
the United States in the past 10 years both have gone up tremendously.
But here's the thing, it's gone up 56 percent in the New York region, while only going up, still a lot, 46 percent in the rest of the country. There is
a gap there. You run very large stores in New York City and beyond. Why is it so expensive? Because that is the problem that the candidate for mayor
wants to get to, right?
CATSIMATIDIS: Well, the problem is, doing business in the city in New York is the highest cost of anywhere, the highest cost of energy of anywhere,
the highest cost of labor anywhere, the highest cost -- we have completely union labor, the highest cost of energy and transportation to get into the
city of New York.
Every truck that comes in from other provinces, from other boroughs, is punished because there's congestion pricing like you have in London. The
problem is created, but not -- you know, we can bring prices down, so do the same thing that city wants to do. Don't charge us any rent, don't
charge us any taxes. I mean, it's common sense, and socialism doesn't work, right? I mean, that's my point of view.
And I've done this for 50 years. I've run supermarkets for 50 years. That's one of our businesses. We're in the oil business, we're in the real estate
business, and we've done supermarkets for 50 years, and I'm willing to keep doing it, but I'm not going to -- you know, there's an old expression in
New York, you can't fight city hall. If City Hall wants to run them, let them run it.
[16:50:06]
I mean, it's dumb, in my opinion. OK, you either have capitalism or you have socialism.
NEWTON: John, we will leave it there for now, but a story we'll continue to follow and appreciate your time, as I said on this holiday, July 4th,
appreciate it.
CATSIMATIDIS: I'm at your disposal anytime.
NEWTON: Thank you. Now Independence Day festivities are, in fact, well underway in the United States. Britain has much to celebrate this July 4th
as well. Oasis is back with fans packing Principality Stadium in Wales for the band's first show in 15 years. Variety's executive music director joins
us next.
(COMMERCIAL BREAK)
NEWTON: The band synonymous with Brit pop is taking the stage for the first time in more than 15 years. Oasis just kicked off its reunion tour in
Wales. That was a couple of hours ago. Fans have filled Principality Stadium to hear the band's hits like Wonderwall and Acquiesce. Oasis
sparked a frenzy last year just by announcing its comeback. Fans waited for hours in online queues only to see ticket prices skyrocket, it was enough
for British regulators to launch a full investigation into Ticketmaster, something we have heard elsewhere.
Now, Jem Aswad is the executive music editor at Variety, and I want to thank you for joining us.
The reunion is a big deal, but I'm a bit puzzled why. I mean, I always say to myself, do 20 somethings really care about this? Explain.
JEM ASWAD, EXECUTIVE MUSIC EDITOR, VARIETY: It's not the 20 somethings that it's for. There aren't that many artists that have not reunited, many
famous bands, The Smiths, Talking Heads did Rock and Roll Hall of Fame, but that's it. And you know, most of them have. So, it's, it's something still
to desire.
And to your point, about 20 something year olds. This is for 40 and 50 something year olds, basically reliving their youth, the big Generation X
thing. And in England, it's taken over an entire generation there.
NEWTON: Yes, right, in my snack bracket, of course. But the brothers' volatile relationship, but I will describe it as operatic at times, the
comments between the brothers absolutely epic. I'm going to give you -- give the viewers a flavor. Noel Gallagher quote when he resigned from the
band, said I simply could not go on working with Liam a day longer.
[16:55:02]
And then from Noel's comeback, basically saying he's a miserable little -- I can't pronounce, you guys fill in the word if you know what I mean.
You know what, we all know what he means. So, how did all of this come together despite what was really a family feud to end all family feuds?
ASWAD: Well, like a lot of these public battles, you have to wonder how real it is. I think a lot of it is real. I think they genuinely don't get
along, but there's no question that the feud played a major role in keeping attention on them for the last 16 years, which is what it's been. It was a
big part of it when they were together in that sort of precipice of you know, today, everybody's wondering, are they going to make it through a
song? Are they going to make it through the set, let alone are they going to make it through the tour?
Because one or both of them have left the band at multiple times over the years. They once did an MTV Unplugged without Liam because he -- they got
in a fight and he didn't show up, and Noel sang all the songs.
But there's -- it's entertainment value, and in a way, it was social media -- a social media feud before social media, and now it's just moved over to
there. So, this is sort of like the cap on the opera, if you will.
NEWTON: The point that they could come together, though, I think gives us reason to smile, especially the fans. But let's get to the issue, right?
They came back together because they were likely going to make a lot of money off this tour, and then we had this online debacle for tickets and
the prices. Why does this keep happening?
We've had investigations into Ticketmaster in the United States, Canada, elsewhere in Europe. What's the solution here as you follow this?
ASWAD: Well, I mean, between this, between Taylor Swift tickets, between Springsteen tickets, the reality is, you're trying -- you know, what? 50
million people are trying to get through a door that will admit two million people. So, it's not surprising that there's going to be a bottleneck, and
there's going to be problems, and there's going to be the internet breaking down.
I'm not an apologist for Ticketmaster at all, but I will say that every time one of these things has happened, they have taken steps to try and
make it better. After the Taylor Swift debacle, which some people say was because she wanted to set a record, break the record for most tickets sold
in a single day. Well, she did break the record. She also broke the internet and Ticketmaster.
So, what they did was they staggered. The next big tour that came up was Beyonce. They staggered the on sales across a month for different segments
of the tour. There were some complaints, but nowhere near as many.
ASWAD: Like you said, though, the supply and demand equation still applies here, and that sometimes can lead to some uncomfortable ticket prices.
Look, unlike everyone else, I'm waiting to see if they make it through these concerts. Jim, I have to leave it there for now, but thanks so much.
Really appreciate it.
ASWAD: Thank you.
NEWTON: Now, in just a few minutes, President Trump set to sign his domestic policy bill in the law at the White House. You are looking at live
pictures there. That is the beginning of the ceremony, and I will bid you to have a good weekend.
(COMMERCIAL BREAK)
END
