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Early Start with Rahel Solomon

Hamas to Release American Hostage As Trump Makes His First State Visit of His Second Term to the Middle East; U.S.-China Trade Talks in Geneva Ends on a Positive Note; Newark's Airport Chaos Frustrates Carriers and Travelers. Aired 5-5:30a ET

Aired May 12, 2025 - 05:00   ET

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

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POLO SANDOVAL, ANCHOR, EARLY START: Good morning, and welcome to all of our viewers joining us from the United States and all around the world, I'm Polo Sandoval in today for Rahel Solomon. It is Monday, May 12th, already a very busy morning, and it's just 5:00 a.m. here in New York. Straight ahead on EARLY START.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: As the U.S. President Donald Trump prepares to head to the Middle East for the first state visit of his second term, the last known living American hostage held in Gaza could be coming home.

UNIDENTIFIED FEMALE: It's great news. It's of course, painful when you think about the others who are remaining, but it also lays the groundwork at least, to keep these negotiations alive.

UNIDENTIFIED FEMALE: The U.S.-China trade talks in Geneva ended on a positive note, with U.S. officials touting substantial progress in a possible deal with China.

UNIDENTIFIED MALE: You can't just turn off and off the U.S.-China economic relationship, and then expect there's not going to be some short circuiting. We need some stability, we need some certainty, and we need some clarity.

UNIDENTIFIED FEMALE: It's a dangerous combination of very bad equipment, a shortage of air traffic controllers, and far more planes than it can handle.

(END VIDEO CLIP)

SANDOVAL: And welcome to your EARLY START where we begin with a major breakthrough in the high level trade talks between the U.S. and China. They have agreed to drastically rollback tariffs for 90 days, and that's according to a rare joint statement that was just issued by both countries. The announcement coming after two days of negotiations in Geneva. A short time ago, the U.S. Treasury Secretary told reporters that the talks will continue.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, SECRETARY OF TREASURY, UNITED STATES: President Trump, Party Chairman Xi, they have a good relationship, but that the nature of what has happened since April 2nd could have been avoided if we had had this kind of mechanism in place. And I believe it is in place now.

I think we leave today with a process that will move forward, and again, great mutual respect for our Chinese counterparts. I believe they showed us the same.

(END VIDEO CLIP)

SANDOVAL: And the news out of Geneva already having at least a positive impact on some of the markets right now. Let's start with Asian markets, where you can see a pretty significant rise in some cases, even a 3 percent rise in light of the announcement of this temporary trade pause.

You look at markets in Europe as well, which are mixed at the open, at least at the moment. Mostly, again, some gains there of a little bit more than 1 percent in some cases. And in the United States, U.S. futures, they stand -- let's show you exactly where they sit. Again, this is what's projected, a fairly significant increase in what's projected at the Dow, S&P 500 and Nasdaq.

Again, these projections will see if they hold true once trading starts, as that news travels very quickly coming from Geneva. Let's go now to CNN's Kristie Lu Stout joining us from Hong Kong. Kristie, bring us up to speed on the parameters of what technically, we shouldn't consider a deal, but at least, a product of these negotiations.

KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT: Yes, absolutely. In fact, we could call it perhaps a trade war breakthrough. The U.S. and China have agreed to drastically roll back tariffs for a period, an initial period of some 90 days. This was announced at that press conference that wrapped a short time ago in Geneva.

A press conference with the U.S. Treasury Secretary Scott Bessent along with the U.S. Trade Representative. It was also announced in a rare joint statement issued by both the U.S. and China. And according to this statement, by May the 14th, the United States will lower tariffs on some Chinese goods from 145 percent to 30 percent.

And China will lower tariffs on U.S. goods from 125 percent to 10 percent. Now, after the trade talks ended on Sunday, we did hear from the Chinese Vice Premier He Lifeng. He said that the talks were candid, they were in-depth, they were constructive. And he also said that the U.S. and China also agreed to set up a new consultation platform that would facilitate more trade talks to come. Listen to this.

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(BEGIN VIDEO CLIP) HE LIFENG, VICE PREMIER, CHINA (through translator): The two sides

agreed on establishing a consultation mechanism for trade and the economic issues, identified the lead persons on each side and will carry on further consultations relating to trade and economic issues of their respective concerns.

(END VIDEO CLIP)

LU STOUT: The talks in Geneva were the first high level, face-to-face talks between the U.S. and China since the latest trade war escalated in March, and the stakes have been so high during this ongoing trade war between these two economic superpowers. We have seen the stock markets all over the world be upended as well with the global supply chain, the risk of a recession has been risen as well.

And now, as we monitor the markets, we're seeing a lot of positivity out there. Investors weighing and considering and really liking what was achieved after two days of high stakes, breakneck talks in Geneva. And Polo, we've also been monitoring Chinese social media and netizens' reaction, and the topic U.S.-China joint statement is one of the top trending topics inside China, clocking views of up to 110 million. Back to you --

SANDOVAL: Wow --

LU STOUT: Polo --

SANDOVAL: Absolutely fascinating. Potentially, as you point out, injecting some certainty into the global markets as made clear in the numbers that we just shared with our viewers. Kristie Lu Stout, great to have you as always.

LU STOUT: Thank you.

SANDOVAL: President Trump, he is set to depart in the coming hours for his visit to three of the world's richest nations. He will be arriving in Saudi Arabia on Tuesday, followed by visits to Qatar and the United Arab Emirates. Now, this coming as Hamas is announcing the imminent release of Edan Alexander, he is the last known living Israeli-American hostage held in Gaza.

Now, in a post on Truth Social, Trump called the development a monumental news, and also, Alexander's parents, they are traveling to Israel right now, but Prime Minister Benjamin Netanyahu says that Israel has not committed to a ceasefire of any kind in exchange for this release. Netanyahu claims that Alexander's release has only made possible, thanks to, in his words, military pressure on Hamas in Gaza.

Our Paula Hancocks joins us live now from Abu Dhabi. Paula, this will be some news that the family of this young man have been waiting for years for -- what do we know about this expected release, how it came together and also how it's different, perhaps from other hostage releases?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: So, Polo, this particular hostage release is very different in the fact that it is an individual being released. And it is a standalone release. There is nothing it appears in exchange for this release. Now, we understand Edan Alexander will be released by Hamas imminently.

They said that it is part of a step towards a ceasefire. It's been described as a goodwill gesture towards the United States, but what it doesn't do is it doesn't really push forward the situation in any tangible way. There will not be, as far as we know, any Palestinian prisoners released in exchange for this hostage release.

There also won't be any promises of a ceasefire. In fact, as you mentioned there, the Israeli Prime Minister specifying that negotiations will take place under fire, saying that they have not committed to a ceasefire of any kind in exchange for this hostage release. Now, of course, it will be very welcome news, to say the least, for the family itself.

They heard on Sunday, on Mother's Day that this was going to happen. And they are quoted as saying, it is the greatest gift imaginable. Now, we know they are going to be in Israel. We know that the Middle East envoy for the Trump administration, Steve Witkoff, will also be in Israel as well. And certainly, this is being seen as a positive development.

But as I say, it is something that doesn't necessarily push towards the other 58 hostages being held in Hamas, apart from Alexander being released as well. It also doesn't give any guarantees of any border crossings into Gaza being opened, any humanitarian aid being allowed into Gaza. It has been more than two months since any food, water, shelter or medical supplies were allowed into the Gaza Strip, and there are increasingly desperate cries from humanitarian aid groups about just how dire the situation is there.

But certainly for this one family, it is a very welcome development. And of course, you have to look at the timing here, it comes just one day before the U.S. President Donald Trump comes to the region. Polo.

SANDOVAL: Paula Hancocks with a very important reminder that this conflict far from over for so many others, but nonetheless, a long overdue reunion, especially for that mother. Paula Hancocks in Abu Dhabi. Thank you.

[05:10:00]

Pope Leo XIV, he is hosting his first audience with journalists since his election to the papal seat. This comes after another first for the new pontiff, his Sunday blessing at the Vatican. A lot of crowds on hand, Leo surprised some of them with his singing during part of the Queen of Heaven prayer. Listen to this.

(BEGIN VIDEO CLIP)

(POPE LEO XIV SINGING THE QUEEN OF HEAVEN PRAYER)

(END VIDEO CLIP)

SANDOVAL: It's been sometime since we've had a singing pope. Pope Leo's first address drew massive crowds and even larger crowds that are expected for his installation mass, which is scheduled for next Sunday. He notably invoked the words of his predecessor, Francis, by calling for an end to war.

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ROBERT PREVOST, POPE OF THE ROMAN CATHOLIC CHURCH (through translator): In today's dramatic scenario of a third world war being fought piecemeal, as Pope Francis said, I, too, turn to the world's leaders with an ever timely appeal, never again war.

(END VIDEO CLIP)

SANDOVAL: A very direct message from his -- to -- directed to his fellow global leaders. Crowds were heard shouting long live the pope! After he finished his address this weekend. Leo says his papacy will closely follow in the footsteps of Pope Francis by caring for the least and the rejected. If we hear some of his remarks with those journalists, we'll certainly make sure to bring you some of that.

And also, we will have more on President Trump's state visit to the Middle East in a live report from the region after a quick break. Plus, Ukraine's President and other European leaders told Russia, no peace talks without a ceasefire. But all of that, of course, changed with a single post from Donald Trump on social media. We'll tell you what the U.S. President said.

And also, another round of chaos at airports on the U.S., especially the east coast, as equipment issues continue to ground flights, where else? At Newark.

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[05:15:00]

SANDOVAL: President Donald Trump will be departing in the coming hours for his visit to the Middle East. He will be arriving in Saudi Arabia on Tuesday, followed by visits to Qatar and United Arab Emirates. The three countries have pledged to invest heavily in the American economy to buy U.S. weapons systems.

The President's first stop, Riyadh, that's where we find CNN's Becky Anderson. Becky, you've reported on what this really means for some of these oil rich nations. It's about safety. It's about security. But for the American President, for Donald Trump, what kind of opportunities does he see in this major trip for him?

BECKY ANDERSON, CNN ANCHOR, CONNECT THE WORLD: It's a really good question, Polo. He has made no secret of the fact that he sees the Kingdom of Saudi Arabia, where I am here in Riyadh, Qatar and the UAE, as offering huge advantages for his America First Policy.

Advantages and opportunities that, frankly, he doesn't necessarily get elsewhere. What does that look like? Well, it is these countries' appetite to commit massive capital, trillions of dollars in the U.S. economy now, and going forward through investments and partnerships, and their increasing influence in mediating an end to global conflict.

These are the sort of, you know, the twin tracks that these countries believe position them as indispensable allies of a Donald Trump-run America. And to be quite clear about this, this is not a one-way street. The blank check of old, if you will. This is a new era for this part of the world. Each country has a list of its own priorities.

This is a region transformed since Donald Trump's last trip here to the kingdom in 2017. And these are countries with huge economic ambitions themselves. The Kingdom of Saudi Arabia, already a society and economy transformed over the past eight years since I've been coming in and out looking for massive investment and partnerships to power its own vision 2030.

It's Saudi First Policy, if you will. This is about an economic future in this region for generations to come. So, no longer a blank check relationship with the U.S., it is strategic and it is laser-focused. I spoke earlier to H.A. Hellyer about what he believes success would look like, for example, for the kingdom on this trip. Have a listen.

(BEGIN VIDEO CLIP)

HISHAM HELLYER, GEOPOLITICAL ANALYST & SCHOLAR IN SECURITY STUDIES, POLITICAL ECONOMY, HISTORY & BELIEF: I think that there's a few things that will be interesting to watch over the next few days. First, the discussion around a nuclear energy program within Saudi Arabia and the cooperation of the United States with regards to that.

Now, this is essentially being decoupled completely from the normalization file. And if you remember, only a little while ago, it was all part and parcel, right? That there would be cooperation on energy, but there would also be a defense treaty as long as there is also normalization. Well, the normalization part is no longer a condition.

These have been completely decoupled, and now, these are bilateral conversations. I don't think you're going to see too much being announced in terms of defense ties.

[05:20:00]

That will be terribly different. I think that's a harder conversation, not because, by the way, I don't think that the Trump administration would be interested in it, but because they'd have to be involvement of Congress, at least at some level, depending on what sort of relationship we'd be talking about. But it wouldn't surprise me at all if we saw an announcement around --

ANDERSON: Right --

HELLYER: Energy. And I think Riyadh will be very happy with that, and I think that D.C. will be happy with that as well. So, there's a lot of win-wins, I think, to be had on this trip.

(END VIDEO CLIP) ANDERSON: One win as H.A. earlier, Polo, pointed out there, that the

President is likely not to get, almost definitely not to get, is this normalization between Saudi Arabia and the -- and Israel. I spoke to the Foreign Minister this time last year, their position hasn't changed. He said normalization was off the table unless the kingdom sees a pathway to a Palestinian state.

Look, we don't know what we might hear from any of these parties on that going forward, and potentially on this trip. But while there is no clear pathway to a Palestinian state, the Kingdom of Saudi Arabia will not be signing up to normalization at this point. But there is an awful lot more on the table.

So, watch for announcements, both from here, from Qatar and indeed from the United Arab Emirates towards the end of the week. That's a country where I live, keenly focused on A.I., advanced tech, crypto, the new geo tech, as it were, which is the sort of third pillar to geopolitics, geo-economics these days, really sort of shifting the paradigm when it comes to international affairs. Polo.

SANDOVAL: An absolutely fascinating conversation there that you had with H.A. Hellyer. I was also -- my ears perked up when you mentioned the possibility, I should emphasize, the possibility of Donald Trump meeting with Syrian government officials. I think that really speaks to, as you point out --

ANDERSON: Yes --

SANDOVAL: This new era of the region of what -- of how much the U.S. President stands to benefit from meeting with leaders in the --

ANDERSON: Yes --

SANDOVAL: Region.

ANDERSON: And you're making a very good point, and it's really important to point out that these -- this comes back to the sort of really bold economic visions that countries in this region have, not least Saudi and the UAE. What I'm told time and time again here is that they -- this is a region that needs to see de-escalation.

This is a region that wants to see economic integration. This is a region that was told by Barack Obama, Donald Trump in his first stint as U.S. President, by Joe Biden and now by the U.S. President Donald Trump again, that they need to sort out their own backyard. And this is what is going on in this region. For example, on the Syria file, both the Saudis and Qatar recently agreed to pay off Syria's World Bank debt.

It was something like $15 million. Doesn't sound enormous, but the idea being these are countries that are prepared to invest, to support the Syrian economy going forward. What they need to see, though, is from the United States. The lifting, for example, of the Caesar sanctions that were put on Bashar al-Assad and his government back in the day. These are still sanctions on the country. And until they see those

lifted, they don't believe they can invest for success and reconstruction for Syria going forward. And of course, you know, what happens in Syria, it doesn't stay in Syria, it ripples around this region. So, these visions will not be completed on -- cannot be successful if this region continues to be sort of, you know, roiling in conflict and working in silos.

So, you see a real attempt around the region for foreign policy to be clearly squared with economic policy. And this really mirrors what's going on in the United States. The President talks about his America First Policy. Well, you know, there is an unapologetic Saudi First Policy here in the kingdom, an unapologetic UAE First Policy in the Emirates.

But all of these countries believe that success in their countries will cascade around the region, that you know, frankly, you know, we'll have to see how that plays out. But this is -- you cannot overstate the importance of this trip for the President to this region. And you can read more about the regional dynamics at play in our CNN digital piece, laying out what Saudi, Qatar and the UAE each have on their wish-list that is online and across CNN platforms. Polo?

[05:25:00]

SANDOVAL: What a moment for you and your team to be there, Becky, always a pleasure being on with you. Thank you. Well, Qatar is the second destination of the visit. As you heard, the President said on Sunday night that the Defense Department plans to accept a Boeing 747 as a gift from that country to replace the current one that's used as Air Force One.

On his Truth Social platform, Mr. Trump hit back to criticism from Democrats, who are calling it bribery. The President says it is, quote, "a very public and transparent transaction." Still to come on your EARLY START, Russia launches air assaults on Ukraine, ignoring global calls for a ceasefire as a precursor to peace talks. How Ukraine is responding is next.

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