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Quest Means Business
Trump Arrives In Scotland Ahead Of Sunday Talks With E.U. Chief; Palestinians In Israel Hold Anti-War Protest; New Research Suggests Extreme Heat Accelerates Aging; Israel Says It Will Allow Foreign Aid Airdrops Into Gaza; France Will Recognize Palestinian State In September; Deported Venezuelan Shares Experience In Salvador Prison; Meta Shelling Out Big Bucks To Ahead In A.I.; China's Beverage And Retail Brands See U.S. Market Boom. Aired 4-5p ET
Aired July 25, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:13]
LYNDA KINKADE, CNN HOST: The closing bell is ringing on wall street, a positive end for the week. The Dow closing just shy of a record. We were to
bring you a special edition of QUEST MEANS BUSINESS today from Central Park, but some thunderstorms got in the way. Richard will join us later
this hour.
Well, those are the markets, and these are the main events.
Israel says it will allow airdrops of aid into Gaza. Aid groups say that can be costly and dangerous.
Hopes rise for an E.U.-U.S. trade deal. Ursula von der Leyen says she will meet with Donald Trump in Scotland on Sunday.
And the reality of hotter summers, extreme heat can actually make you age faster.
Live from Atlanta. It is Friday, July 25th. I am Lynda Kinkade and this is QUEST MEANS BUSINESS.
Well, good evening.
U.S. President Donald Trump has landed in Scotland as his administration tries to reach a trade deal with the E.U. The President is there for a
five-day visit. E.U. chief Ursula von der Leyen says she will meet with him on Sunday to discuss trade.
Before leaving the U.S., President Trump said the United States was collecting so much money from tariffs that it might give some back to the
people.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: We are thinking about a rebate because we have so much money coming in from
tariffs -- the tariffs -- that a little rebate for people of a certain income level might be very nice.
(END VIDEO CLIP)
KINKADE: Well, Kevin Liptak is at the White House and joins us now live. A busy day for you, Kevin. President trump are a short time ago said there
were 20 sticking points still in the trade negotiations with the E.U. What are some of those?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: It is not entirely clear, although you can expect some of the ones that have occurred in these other
negotiations could potentially be part of that, including opening up the E.U. to U.S. imports and this is something that the President has really
kind of been laser focused on as he tries to clinch these trade deals ahead of the August 1st deadline, by which the new tariffs that he has threatened
would go into place.
When it comes to the E.U., that tariff would be 30 percent, which is sort of massive. The talks now seem to be sort of convening around a 15 percent
tariff rate, which is similar to what he has offered Japan and a number of other countries, and I think this meeting on Sunday evening in Scotland
with the European Commission President, Ursula von der Leyen, will be fairly critical in advancing those talks.
You know, these are two leaders who aren't necessarily personally close. You heard the President in the gaggle a few minutes ago, describing her as
a good woman, but this is not someone that he has met extensively with. She has not been invited to the White House since the President returned to
office in January.
And so this meeting, which will occur at his Turnberry Golf Course on the West Coast of Scotland, will be an important moment for them to talk about
some of those sticking points and certainly, the hope for von der Leyen is that she is able to avoid the 30 percent tariff that Trump has threatened
on the E.U.
So this will be an important moment. The President said in that gaggle that he thought there was a good chance of reaching this deal. He put the odds
at 50/50, which I am not sure would be described as a good chance, but 50/50 chance. But then you also heard the President go on sort of a lengthy
screed about the E.U. itself, which I think is actually important because it gives you a sense of the President's attitude towards Europe and towards
the European Union.
You know, he has said previously that he thinks the E.U. was conceived to screw the United States. And then in this gaggle, you hear him talking
about issues like immigration, which he says that they need to fix. That's obviously a key issue for him here in the United States, but also talking
about this issue of windmills, saying that they need to get rid of the windmills. That's something that I think is on his mind because he has sort
of disputed the use of those off the coast of Scotland, where you can see them from his golf course.
And so you see how in the President's mind, a lot of this is all wrapped up. The trade issues, the non-trade issues. And I think this meeting with
Ursula von der Leyen will be an important moment for them to kind of sit together, get each other's temperature and really try and get this deal
done. Because even though President Trump says that he has the cards here, that he will put in place this 30 percent tariff, it is true that I think a
lot of people in the White House and Washington want very much to avoid that.
They don't necessarily want a 30 percent tariff on one of the United States' largest trading partners. And so you can see the urgency that the
President faces in trying to reach these deals and certainly he will try to advance that on Sunday evening.
[16:05:02]
KINKADE: All right, Kevin Liptak outside the White House, our thanks to you.
Well, Andy Bounds is the E.U. correspondent at "The Financial Times" and joins us now live from Brussels. It is great to have you with us.
ANDY BOUNDS, E.U. CORRESPONDENT, "THE FINANCIAL TIMES": Thanks very much. Nice to be here.
KINKADE: I want to get your perspective on what you think the last roadblocks are in the negotiations between the U.S. and the E.U.
BOUNDS: Yes, well. I have to say that figure of 20 is news, probably to the E.U. side, but there's certainly several cards that is still quite a big
issue. The U.S. doesn't really want to lower tariffs too much on cars. There is the steel issue which is very dear to Donald Trump's heart and the
Europeans are looking for more access for their steel to the U.S., and there are issues like product standards and so on as well. You know, non-
tariff barriers, as he calls them.
So there are still quite a few open areas, and also the feeling that whatever deal you do, you know, will Donald Trump stick to it? Or will he
then come back for more in two months' to three months' time? And then what do you do, you know about that?
KINKADE: Yes, exactly.
Of course, the August deadline for this trade deal is rapidly approaching and we heard from Donald Trump several times today saying he thinks there
is a 50/50 chance of a deal. Does that sound pessimistic or optimistic? What do you make of that?
BOUNDS: I think that's reasonably optimistic. I don't believe that Ursula von der Leyen will be flying there to have a failure, right? I mean, as you
say, as your correspondent said, they've not met much. You know, just on the sidelines of meetings. She has not been to Washington. This is a big
deal for her, a big moment for her.
And, you know, she would not go and sit in front of Donald Trump, you know, to receive a sort of tongue lashing and a failure. That said, you know,
issues are still open. So there are no guarantees. But I would put it slightly higher than 50 percent, maybe 75.
But, you know, I am not in the room as he is.
KINKADE: I mean, Ursula von der Leyen has said that she is ready and willing to negotiate, but also ready to apply counter-tariffs should these
negotiations fail, what could that mean for the U.S.?
BOUNDS: Well, the E.U. has passed a package of 93 billion worth of U.S. goods that will be hit with tariffs on August the 7th if there is no deal
by August 1st.
So I think unlike last time, where you remember we had a deal by July the 9th and they pushed it down the road and said, let's keep talking. I think
this is the real moment. If there is no deal, by August the 1st, then I think, you know, the E.U. will use that retaliation and they might start
talking about retaliation in other areas such as services. You know, they've been talking about a possible levy on digital taxes, which would
hit companies like Google and so on, you know, advertising revenue.
So I do think it could get quite nasty because European patience have been, you know, they had a lot of patience. They've answered in good faith. There
has been a lot of progress. They're giving away quite a lot of concessions in the deal as we hear, you know, 15 percent tariffs across the board Japan
style.
So yes, I mean I think this is a pivotal key moment and things will develop over the next, you know, week at the most.
KINKADE: And of course, E.U. leaders have been watching, as you say, those deals with the U.S. and Japan and of course the U.K., and the U.S. What are
the key takeaways from how those deals played out?
BOUNDS: Well, I think the E.U. came into this process thinking, you know, we are big. You know, we are the biggest trading partner. We are a strong
ally. You know we will deal with this like the first time Trump was in the White House and we will get some kind of, you know, we will buy some more
stuff from the Americans and they will put a few tariffs on and leave us alone.
I think it then became clear that that wasn't trumps game at all and as you saw in that clip, you know, where he is saying, we are bringing in so much
money from tariffs, I am going to give some to the people.
So he really believes in these tariffs as a tool for revenue raising. He believes the U.S. has been ripped off, hollowed out. You know, there is a
big trade deficit with the E.U., so the E.U. is in quite a weak position. They're also worried about issues like security. You know his commitment to
NATO, if they do -- if they retaliate on trade, does that lead across into other issues? And he starts talking about Ukraine and, you know, pulling
support.
So it is a really complicated situation, and I think the E.U. 15 percent is about the limit of where they would get to, to accept if he pushes harder
than that, then it could get a bit nasty.
KINKADE: All right, we will see how these discussions play out on Sunday and what the readout is.
Andy, good to have you with us. Andy Bounds, E.U. correspondent with "The Financial Times." Thank you.
BOUNDS: Thanks.
KINKADE: Well, Israel says it will allow foreign aid to be airdropped into Gaza in the coming days. Health officials in Gaza say at least nine people
died of starvation in the past day, bringing the total to 122 since the start of the war.
The U.N. official in charge of Palestinian aid criticized the use of airdrops. She says they are expensive and dangerous. Five people were
killed and ten others injured when aid packages fell on them last year.
Well, Palestinians, along with some Jewish Israelis, took to the streets in one Arab town in Israel today to call for an end to the war and the
suffering in Gaza.
CNN's Jeremy Diamond was there.
[16:10:10]
(BEGIN VIDEOTAPE)
JEREMY DIAMOND, CNN CORRESPONDENT: Amid the images of starvation in Gaza that have shocked the world, we are here in Israel at one of the largest
anti-war demonstrations that this country has seen. We are talking about a large community of Palestinian citizens of Israel, some Jewish-Israelis as
well, who have come to raise their voices not only against the war in Gaza, but in particular against the starvation that many here see as a direct
result of Israeli policies in Gaza.
And as that is happening, we are seeing people come out here with the images of the bodies of many of those individuals in Gaza who have been
starving. We are seeing people banging pots and pans to call attention to all of that.
You know, in Israel, we haven't seen a lot of big anti-war demonstrations. The largest that we have seen have largely been focused on the hostages and
the fate of the hostages, with many there also calling for an end to the war, but here, the focus is very much on the plight of Palestinians, on the
plight of Palestinians inside of Gaza and amid it all, what we are hearing now are chants against the Israeli Prime Minister, Benjamin Netanyahu, who
many here see as responsible not only for the war in Gaza but for the current starvation now underway.
Jeremy Diamond, CNN, Sakhnin, Israel.
(END VIDEOTAPE)
KINKADE: Well, fishing in Gaza was once a lifeline, a vital source of protein that's now forbidden with the Israeli military renewing a warning
earlier this month not to enter the water, and despite the restrictions, many in Gaza have no choice but to keep fishing, risking their lives in
doing so.
Jeremy Diamond also filed this report.
(BEGIN VIDEOTAPE)
DIAMOND (voice over): The sea once fed Gaza's children shut out from the world under an 18-year Israeli blockade. Now, this is what is left, after a
lifeline became a kill zone.
(FAYZA speaking in foreign language.)
TRANSLATION: We have nothing to eat so we come. I wait for the fishermen to come out of the sea and give me some..
DIAMOND (voice over): What once provided relief now stokes fear. Israel reissued a warning last week prohibiting anyone from entering the sea, but
hunger brings them back. Seen from the water, Gaza's skyline tells its own story, a jagged line of tents and shattered buildings, destruction is
always present, even at a distance.
(AWAL AL AMOUDI speaking in foreign language.)
TRANSLATION: It is true that planes come and shoot at us. They do everything. But we have to go to the sea.
If a day passes without going to the sea, we will die of hunger. I know it is forbidden, but I have to.
(ZIYAD ABU AMIRA speaking in foreign language.)
TRANSLATION: We don't have any other source of food but this one. If I don't bring it to my children today, I die. I have no other place to get
food from.
I will not run after trucks. This is my way.
(HUSSAM SAADALLA speaking in foreign language.)
TRANSLATION: I am throwing the net because we want to eat. Me and my friend made this net to catch fish and eat.
This is what I fished.
I'm always afraid of the naval boats. If we come a bit deeper, the naval ships shoot.
DIAMOND (voice over): They have reason to be scared. This video posted on social media shows what can happen to those who wade too far out.
(UNIDENTIFIED MALE speaking in foreign language.)
TRANSLATION: The (Israelis) took them. They took them.
DIAMOND: In this video, filmed by a cameraman working for CNN shows Israeli projectiles striking close to shore. The Israeli military has not responded
to CNN's requests for comment on these incidents.
(AWAL AL AMOUDI speaking in foreign language.)
TRANSLATION: I have friends who got martyred. Others got injured.
Me, as a fisherman, I'm waiting for my death. But what can I do?
DIAMOND (voice over): Once a source of life, the sea now full of deadly risk. Cut off, patrolled and punished by blockade.
Jeremy Diamond, CNN, Tel Aviv.
(END VIDEOTAPE)
KINKADE: Still to come, there are heat warnings across much of the Northeast of the United States, and now a new warning that extreme heat
could be making us all age faster.
(COMMERCIAL BREAK) [16:17:36]
KINKADE: Welcome back.
Well, there are extreme heat warnings throughout the northeast parts of the United States, and everyone knows that high temperatures can be exhausting,
but it turns out that when it is extremely hot, you may not just feel headachy or woozy or even dehydrated. Severe heat stresses the body so much
that it can actually make you age faster.
Well, Jacqueline Howard, our medical correspondent, is following this story and joins us now.
Good to see you, Jacqueline.
So, you know, there is a whole industry that is dedicated to telling us that we can reverse the signs of aging, but now we are learning that
extreme heat can actually speed up the biological process. Just explain how.
JACQUELINE HOWARD, CNN HEALTH REPORTER: Exactly, Lynda. Yes, this is such a hot topic, especially in Medicine, but what we are learning from this new
research that's based on data from more than 3,600 adults who are older than age 56, researchers found in this data that if you are exposed to
extreme heat on several days in a year, that can accelerate aging in your cells, and researchers found this specifically: People who experienced at
least 140 days of extreme heat each year aged up to 14 months faster than those living in places with fewer than ten extreme heat days a year.
And in this study, Lynda, extreme heat was measured as greater than 90 degrees Fahrenheit. So that's more than about 32 degrees Celsius. And as we
just saw on that map, many, many places here in the United States and around the world right now are experiencing greater than 90 degrees heat.
So that's what makes this really, really interesting and soaring temperatures can deteriorate our cells and tissues, and that's what
researchers say is driving this aging in our cells if you do experience extreme heat several times in a year, and when I say aging, I am talking
about biological aging.
So as you know, our chronological age is based on our birthday, how long we've been alive, but biological aging is based on how well your cells and
tissues are functioning and that's what this research is really zeroing in on when you look at this data.
KINKADE: So how does that affect the body at a cellular level? And why are older adults more vulnerable?
HOWARD: Well, when you think about how your body responds to heat, it really comes down to how you can overheat and how your body is really
taking on the stress of that temperature, and we see this in acute cases as well, when you think about heat stroke and heat exhaustion with heat
stroke, for instance, your body temperature can rise to 106 degrees within 10 to 15 minutes. So we are really talking about the stress on the body
when you are in extreme temperatures.
Now there are ways to prevent this, obviously, if you're living in an area where there is extreme heat, you want to make sure you limit your time
outdoors, especially during the hottest part of the day. Try to stay in air conditioning or keep your windows open to get a fresh breeze if you can.
If you do enjoy exercising outdoors, exercise when it is during the cooler part of the day, and what is also interesting when we think about cellular
aging, Lynda, some people who have chronic diseases, they may already be taking medications that have been found to slow down aging. For instance,
if you're prescribed metformin for diabetes, that is seen as one example of how you can slow down aging with that prescription or GLP-1 medications. We
are also seeing research in this space when it comes to those medications.
And then for all of us, ways to slow down aging: Exercise regularly, eat a healthy diet, maintain a healthy weight, do not smoke, limit alcohol.
Smoking is a seen as a way where you're accelerating aging. So don't smoke, limit alcohol. These are things we can all do to hopefully add years to our
lives -- Lynda.
KINKADE: And often we are told that sleeping is the way that the body recovers, but what happens if you're trying to sleep in really hot
conditions.
HOWARD: Right. That can be tough, but sleep is most important when it comes to helping to age in a healthy way and to slow down that cellular aging
process. So if you are an extreme temperatures, you want to sleep at cool levels.
When I say cool, if you can set your temperature in your room to around 68 degrees Fahrenheit or cooler for instance, and definitely make sure to keep
your windows open to get that fresh breeze if you don't have air conditioning.
And the reason why getting enough sleep is so important, especially as you age, is because it can really help kind of reinvigorate at a cellular
level, your cells and tissues, and it can also help reduce stress and inflammation. And stress is also something that can accelerate aging. So
outside of getting enough sleep, when I say enough sleep enough quantitatively and quality sleep as well, so getting enough quality sleep
and getting the quantity, the amount of sleep as well as de-stress during the day, take minutes to breathe.
And if you do enjoy exercise or yoga, try exercise as a way to de-stress and that can help with aging as well -- Lynda.
So I am so happy you mentioned sleep and reducing your stress.
KINKADE: I want all the tips. Jacqueline Howard, good to see you. Thank you.
HOWARD: Thanks, Lynda.
KINKADE: Well, I want to turn now to the clashes between Thailand and Cambodia. It has been a second day of deadly clashes. The death toll is
rising from the fighting, with the Thai Health Ministry now saying 16 people have been killed, 46 wounded in the country and officials in
Cambodia have so far reported one death and five injuries.
The conflicts also have seen tens of thousands of people evacuate from their homes near that frontier.
CNN's Kristie Lu Stout has more.
(BEGIN VIDEOTAPE)
KRISTIE LU STOUT, CNN CORRESPONDENT (voice over): Thai artillery fire pounds Cambodian positions on the second day of deadly conflict between two
Southeast Asian neighbors. Their 500-mile shared border now a conflict zone. The flare up has already claimed several lives, displacing over
100,000 people in Thailand, according to its Ministry of Interior, and thousands more in Cambodia, AP reported, citing an official where families
are sheltering on the grounds of temples.
VENG CHIN, 74-YEAR-OLD CAMBODIAN RESIDENT (through translator): I was so scared, shaking so much, I didn't bring anything with me, and then my son
tried to pull my hand up onto the tractor.
STOUT (voice over): The roots of the conflict go back to the colonial era when many of Asia's borders were drawn by European powers, including the
areas of religious and archeological significance.
THITINAN PONGSUDHIRAK, CHULALONGORN UNIVERSITY: Both sides, Cambodians and Thais feel resentful of history. Thais think that the French took some land
from Thailand, gave to Cambodia. Cambodians think that this is their civilization from a long, long time ago.
STOUT (voice over): In Thailand's Surren Province, evacuees shelter in a university, a hospital in the area abandoned after being bombed.
[16:25:09]
(KUMMOON SRIPRAHORN speaking in foreign language.)
TRANSLATION: I don't want this war to happen. I don't want fighting.
STOUT (voice over): But the violence continues. Cambodia accuses Thailand of using banned cluster munitions. CNN has contacted the Thai military for
comment.
On Friday, the Thai Army released this footage showing its drones destroying Cambodian ammunition stocks. CNN cannot verify the video, which
purports to show jungle positions destroyed, Washington has called for restraint.
TOMMY PIGOTT, PRINCIPAL DEPUTY PRESS SECRETARY, U.S. STATE DEPARTMENT: The United States urges an immediate cessation of hostilities, protection of
civilians, and a peaceful resolution of the conflict.
STOUT (voice over): But Beijing is watching too as the border battles threaten to develop into something bigger.
FU CONG, CHINA'S PERMANENT REPRESENTATIVE TO THE UNITED NATIONS: And as far as China is concerned, we are going. We are mediating between the two
sides, and we do hope that the situation can stabilize as soon as possible.
STOUT (voice over): The U.N. Security Council will meet Friday to try to mediate an end to an ugly chapter in a combative relationship.
Kristie Lu Stout, CNN.
(END VIDEOTAPE)
KINKADE: Well, still ahead, the British Prime Minister says he will pull every lever to help the Palestinians in Gaza. Keir Starmer says the scenes
there are appalling and unrelenting. We will have that story next.
(COMMERCIAL BREAK)
KINKADE: Hello, I'm Lynda Kinkade. There is more QUEST MEANS BUSINESS in just a moment, but first, the headlines this hour.
U.S. President Donald Trump has just arrived in Scotland. The President's five-day visit will be a mix of both official and personal commitments.
President Trump is expected to visit his golf courses. He is also scheduled to meet with both the British Prime Minister and the European Commission
president.
[16:30:01]
The U.S. Justice Department finished a second day of talks with Ghislaine Maxwell, the convicted accomplice to sex trafficker, Jeffrey Epstein.
Maxwell's attorney says she was asked about one hundred different people and held nothing back.
The Trump administration is facing backlash for failing to disclose more information about the Epstein case. The convicted sex offender took his own
life in jail while awaiting trial on federal charges.
Thailand has activated martial law in two provinces bordering Cambodia. Clashes between the two countries have reportedly displaced more than
135,000 people. The Human Rights Watch analyst told CNN that under martial law, the Thai military will be able to detain individuals for up to a week
without charge. They'll also be able to implement a curfew and limitations on movement.
British Prime Minister Keir Starmer says the pathway to peace in the Israel-Hamas war includes recognizing a Palestinian state. He's pledging to
pull every lever to get Palestinians in Gaza humanitarian support, including evacuating children who need urgent medical care. Starmer did not
mince his words when describing the situation in Gaza.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH PRIME MINISTER: The appalling scenes in Gaza are unrelenting. And I know the British people are sickened by what is
happening. The images of starvation and desperation are utterly horrifying. The denial of aid to children and to babies is completely unjustifiable.
(END VIDEO CLIP)
KINKADE: I want to go to Israel now. Our Jeremy Diamond is there. Good to have you with us, Jeremy. I want to start first on that humanitarian
situation in Gaza, because Israel has long sided Hamas stealing supplies as a reason for restricting aid into the Gaza Strip. But a USAID investigation
found no evidence of widespread theft. Have you seen any reaction to the findings there?
JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: We have not, the Israeli military, you know, continuing to repeat that there is well documented
evidence of Hamas using humanitarian aid to fund its militant activities in Gaza.
But this USAID investigation, and its findings of no -- or its lack of findings of any significant stealing of aid by Hamas really just bolsters
what we've been hearing from humanitarian aid organizations throughout the course of this war.
I mean, the United Nations has long said that it's seen no evidence of widespread or wide scale stealing of aid by Hamas. We've also heard from
former Biden administration officials who have since come out publicly to say that they asked Israel for evidence of this practice by Hamas, which
Israel has long decried, and that they were never presented with any evidence of the sort.
And so, you know, there's no question. I mean, I've spoken with a former hostage who told me that he saw, you know, stockpiles of humanitarian aid
in the tunnels in which he was held. But that is something altogether very different from the large scale stealing of humanitarian aid to a point
where it would lead Israel to do what they have actually done, which is to create this entirely separate system through this Gaza humanitarian
Foundation, which they claim will keep the aid from Hamas.
And instead, the result of that we have seen has been a chaotic distribution model in which we have seen hundreds of people who have been
shot and killed by the Israeli military as they have tried to make it to those sites.
KINKADE: And of course, as the humanitarian situation gets worse by the hour, there doesn't seem to be any progress when it comes to a ceasefire,
negotiators have walked away, essentially. What -- why did they -- why did they walk away? And what does the U.S. president mean when he says they're
considering other options to now end this war and bring the hostages home?
DIAMOND: Well, I can tell you that I spoke earlier today with a source familiar with the negotiations, who told me that it was an earthquake in
Doha, Qatar, where these negotiations have been happening, when that statement from the U.S. Special Envoy Steve Witkoff, came out last night
announcing that the United States was pulling back from these negotiations, withdrawing its negotiating team back for consultations, as Witkoff accused
Hamas of not negotiating in good faith here.
I can tell you that there's still some uncertainty about exactly what this means for the talks, even as we have heard the Israeli Prime Minister and
President Trump suggesting that they are going to walk away from these talks altogether behind the scenes, I'm told that that's not necessarily
the case.
[16:35:00]
I spoke with a senior Israeli official who told me that in his view, this is not at all a collapse of these negotiations, but that rather, it seems
to be an attempt to try and jolt Hamas back to reality, back to the realm of what is actually possible in these negotiations. Basically saying that
Hamas' latest response, which was submitted on Wednesday, didn't come close enough to the Israeli position, and that is what seems to have prompted the
decision by the U.S. and Israel to pull their negotiating teams from Doha, at least for the moment.
And so, what this will require, according to the senior Israeli official, is for Hamas to come back with a new response, with one that is
significantly closer to the Israeli position, and that does seem to be the intention of this pressure tactic from the United States.
But it also seems quite clear that President Trump is prepared to walk away altogether. I mean, the language that we heard from him today was quite
stark as he talked not about other diplomatic options for getting the hostages back and ending the war in Gaza, but rather basically making clear
that Israel would have carte blanche to, you know, eradicate Hamas from Gaza, whatever that may mean, and effectively to pursue what could very
much be an endless war in Gaza against a deep seated insurgency there with no real prospects of a negotiated outcome.
So, you know, there's no question that we are at a fork in the road right now, I think the next few days will make clear whether that fork was a
collapse of these talks altogether, or whether there's the possibility of reviving them in the coming days.
KINKADE: We can only hope it's the latter. Jeremy Diamond, our thanks to you, appreciate it.
Well, France will soon recognize a Palestinian state, and expects other nations to follow suit. The news is welcomed by the Palestinian vice
president, a senior French official tells CNN, "The idea is to put a bit of pressure on other countries following President Emmanuel Macron's surprise
announcement."
Israeli Prime Minister Benjamin Netanyahu condemned the decision, saying that it rewards terror. President Macron says he will make a formal
announcement in September at the United Nations General Assembly. CNN's Saskya Vandoorne has more.
(BEGIN VIDEOTAPE)
SASKYA VANDOORNE, CNN PARIS BUREAU CHIEF (voice over): This is a historic move from France. It says it will recognize the state of Palestine at the
United Nations this September, becoming the first major western power to do so. And the timing is no accident.
French front pages this week show images of skeletal Gazan children, victims of the hunger crisis, pushing the Palestinian question back to the
top of the agenda.
As ceasefire talks between Israel and Hamas again look to be stalling, an Elysee spokesman said Macron hopes the move could add pressure on Jerusalem
at a critical moment.
So why has Macron done this? Despite strong support for Israel after the October 7th Hamas terror attacks, he says this isn't about Hamas. It's
about reviving the two-state solution.
We must build the state of Palestine and ensure it contributes to security of all, he wrote.
JOSHUA ZARKA, ISRAELI AMBASSADOR TO FRANCE: Hamas are looking at what's happening, are looking at what is being decided in international community
and from their point of view, it will be an encouragement to continue. It is going to be harmful not only for the future, but for the continuation of
the war. It will encourage basically Hamas to say, well, it's working. Why should we stop?
VANDOORNE (voice over): Meanwhile, President Donald Trump dismissed the move.
TRUMP: His statement doesn't carry any weight. He's a very good guy. I like him, but that statement doesn't carry weight.
VANDOORNE (voice over): The decision follows Spain, Ireland and Norway who recognize Palestine last year. The stakes are high for Macron, as France is
home to the largest Jewish and Muslim populations in Western Europe. And yet a May poll found 63 percent support statehood.
And pressure came from within France, too. This week, prominent French historian Vincent Lemire warned Macron, quote, if you wait any longer,
you'll end up recognizing a cemetery.
For Macron, it's also about legacy, following in the footsteps of President de Gaulle, Francois Mitterrand and Jacques Chirac, all of whom were
sympathetic to the Palestinian cause, Macron may be taking the lead and adding symbolic gesture, but for now, there's little hope the French
decision will change the reality on the ground in Gaza.
Saskya Vandoorne, CNN, Paris.
(END VIDEOTAPE)
KINKADE: Venezuelans deported from the U.S. is speaking out about their experience inside El Salvador's notorious mega prison. CNN's Stefano
Pozzebon speaks to that one of them after the break.
(COMMERCIAL BREAK)
[16:43:00]
KINKADE: Welcome back. I'm Lynda Kinkade.
Venezuelans deported from the U.S. is speaking out about their experience inside El Salvador's notorious mega prison. Some say they were beaten by
prison guards, shot with pellets, and deprived of proper medical care for months.
Stefano Pozzebon is in Caracas, Venezuela, and he joins us now live. Good to have you with us, Stefano. So, El Salvador's mega prison has drawn
international attention for its harsh conditions. What can you tell us about these new allegations? What exactly were you told?
STEFANO POZZEBON, CNN CONTRIBUTOR: Yes, Lynda, well, these allegations are chilling. There is no other way around it. But as we want to speak business
first, I wanted to bring you one latest development here in Venezuela. We're coming to you live from in front of a gas station, because business
here in this country, as often has to do with oil.
And just overnight, the Venezuelan President Nicolas Maduro has announced that Chevron, the major oil company from the United States, has been
allowed to operate in Venezuela, that will mean that the exports of oil that this government so often rely is reliant upon to get some money will
resume.
And we don't know if that is a direct result of the negotiation that brought those people that we were able to speak with here in Caracas.
Last week, the Venezuelan government signed a deal to trade at least 10 U.S. nationals and permanent residents in exchange for it, for more than
250 migrants who were released. They were released from the second person in El Salvador, we were able to speak with one. His name is Jerce Reyes,
and this is his story.
(BEGIN VIDEOTAPE)
POZZEBON (voice over): A homecoming, fit for a star, Jerce Reyes left Venezuela last year alone, and this is how he returned. Welcomed back after
being deported from the United States and spending four months in El Salvador's notorious CECOT prison.
He was returned last week with 251 other Venezuelan migrants in exchange for 10 U.S. nationals and permanent residents, plus dozens of political
prisoners held in Venezuela. Reyes told CNN that his stay in the prison was agony.
[16:45:16]
JERCE REYES, DEPORTED TO CECOT (through translator): After they shaved our heads, we had to walk about 100 feet, crouching like this. They beat us.
When we got to the cells people were screaming. There was blood on the floor, vomit.
Then the director spoke and said, "Welcome to the center for the confinement of terrorism. Welcome to hell on earth."
POZZEBON (voice over): On one occasion, he claims he was sent to solitary confinement for hours as a punishment because he tried to shower outside
the allocated time. At times, he says, he contemplated suicide.
The Salvadoran government denies these allegations, saying it respects the human rights of those in custody, quote, "without distinction of
nationality".
A former professional soccer player, Reyes crossed the U.S. southern border last September for an appointment with immigration authorities. He was
accused of being a gang member and immediately detained by Immigration and Customs Enforcement.
In December, he applied for asylum, citing Venezuela's economic crisis. But in March, U.S. Homeland Security accused him of belonging to the infamous
gang Tren de Aragua, an assessment DHS confirmed to CNN in a statement then and reiterated Thursday.
Reyes says this is a misunderstanding.
This is the incriminating tattoo. He's saying that it represents his favorite soccer club, Real Madrid from Madrid in Spain. -- the crown and a
soccer ball. And he's saying that that's why he spent four months in a maximum-security prison.
His tattoo artist told us he inked him in 2018, when Tren de Aragua was barely known inside Venezuela, let alone abroad.
CNN verified Reyes has no criminal record in his own country. What is your message for President Trump.
REYEZ: As the Bible says do not judge by appearances, but by justice.
POZZEBON (voice over): This week, Venezuela opened an investigation into several Salvadoran officials, including President Nayib Bukele, for the
alleged abuses at the prison. Reyes says that he won't be leaving this place anytime soon, simply glad to be back on the field.
(END VIDEOTAPE)
POZZEBON (on camera): Lynda, I really think that his case is particularly interesting because, like he said, he was waiting for an asylum. He was due
to be in court in the United States on April 17th in front of a judge to present his case, and he was hoping being granted asylum due to the
dramatic economic conditions that this country is still living through, by the way, here in Venezuela.
But that, of course, didn't happen, and Reyes has been able to speak with his lawyer since he came back to Venezuela. He confirmed to that to us just
yesterday, but he has no intention of trying to go back to Venezuela anytime soon -- sorry, to go back to United States, of course, anytime
soon, Lynda.
KINKADE: You can't blame him. Well done getting that interview. Stefano Pozzebon, thanks very much.
Well, the race pitting tech giants against one another. Why Mark Zuckerberg is spending billions of dollars to take the lead in artificial
intelligence? That story is next.
(COMMERCIAL BREAK)
[16:51:02]
KINKADE: Welcome back. Meta CEO Mark Zuckerberg is spending billions of dollars to get ahead in the A.I. race. He reportedly wants his company to
be the first to reach so called artificial superintelligence. That's the theoretical point where A.I. goes beyond the capabilities of human
knowledge, and to get there, Zuckerberg is on a mission to recruit an all- star team of researchers and engineers to beat his competition.
Well, Clare Duffy is with me. Good to see you. Claire, so just how successful has Meta been at poaching top A.I. talent from rivals?
CLARE DUFFY, CNN BUSINESS WRITER: Hi, Lynda, he has been shockingly successful. Really, they have managed to hire top A.I. talent away from the
likes of OpenAI, Google, Anthropic, Apple, Scale AI.
And just to really underscore how successful they've been at this, just a few minutes ago, Mark Zuckerberg announced that Shengjia Zhao will be the
company's new chief scientist for its Meta Superintelligence Labs team. This is an employee that they hired away from OpenAI just a few weeks ago,
and he was one of the makers of ChatGPT.
Mark Zuckerberg says he will now be leading Meta Superintelligence Labs, research agenda and scientific direction.
Meta had already been spending tens, if not hundreds of billions of dollars on data center infrastructure for artificial intelligence, and this hiring
spree really kicked off several weeks ago with the $14 billion investment in the A.I. startup Scale. AI. As part of that deal, Meta hired away
Scale's founder and CEO, Alexandr Wang. He will now be leading this new Meta Superintelligence Labs team.
And since then, they've hired around two dozen other top researchers and software engineers and product managers away from those rivals, and part of
this has been Meta shelling out for multimillion dollar pay packages for some of these top talent.
So, it's no surprise that they have been able to get these people to switch companies, Lynda.
KINKADE: Yes, money does make a difference, but Meta already had a sizable A.I. research group, right? So why create and pull billions of dollars into
a new team? Is it about catching up or changing the game entirely?
DUFFY: Yes, I think there's a couple of things at play here. One of them is the fact that Meta had fallen behind, reportedly on releasing its biggest
version of its most advanced A.I. model earlier this year.
So, I think there may have been some internal worries about potentially falling behind. Mark Zuckerberg, of course, wants to be the winner in this
race to superintelligence.
The other, I think, bigger motivation, is that Mark Zuckerberg has for a while wanted to make Meta more than just a social media company. He had
that sort of unsuccessful bid to turn the company into a Metaverse platform a few years ago, and now he has really refocused its efforts on artificial
intelligence.
They've spent these billions of dollars on data centers. They need to do something with them, because unlike some of its peers, like Google and
Microsoft, it doesn't have a cloud computing business to fall back on if it doesn't succeed at A.I.
And he's also built this big devices business around smart glasses, that business hinges on its A.I. models continuing to get better and better.
KINKADE: Fascinating. All right, good to have you with us, Duffy, thanks so much.
Well, Chinese brands are expanding across the U.S. despite President Trump's ongoing trade war. Luckin Coffee, Pop Mart and Haitian have all
seen a major boom, but what makes these brands so loved by Americans? CNN's Vanessa Yurkevich and Marc Stewart investigate from two different
continents.
(BEGIN VIDEOTAPE)
VANESSA YURKEVICH, CNN CORRESPONDENT: America's latest coffee chain isn't from America.
MARC STEWART, CNN CORRESPONDENT: It's from where I live. Luckin Coffee is from China.
YURKEVICH: Luckin just opened its first two locations right here in New York City. They are huge in China.
STEWART: Here in China, Luckin overtook Starbucks back in 2019. Right now, it has about 22,000 stores across the country. You can understand why it
has its eye on the U.S.
YURKEVICH: How did you hear about Luckin?
UNIDENTIFIED FEMALE: I actually heard about it from TikTok. Apparently, it's China's number one coffee chain. So we really wanted to try it. It's
actually really good.
[16:55:06]
STEWART: Here in China, Luckin is known for its cheap prices. This is a specialty latte with oat milk. It only costs about $1.25 U.S. dollars.
Do you think they'll be successful in the United States?
UNIDENTIFIED MALE: If they are cheaper as they are in China now, I think they will be. Coffee is coffee.
YURKEVICH: All right. We got some cold brews here. Ice drinks started about 4.50 and go up from there.
Luckin isn't the only Chinese beverage company to come to the U.S. HEYTEA, a really popular tea brand in China, has been here in the United States
since 2023.
STEWART: HEYTEA is very popular among young people here in China. It's very sweet, but there's also a fresh taste to it.
YURKEVICH: The Chinese own company Pop Mart did $1.8 billion in sales last year. And about 23 percent of that came from outside of China, primarily
because of these guys.
UNIDENTIFIED FEMALE: Labubu unboxing.
STEWART: Even before the Labubu craze, Pop Mart was popular here in China. This is its theme park in Beijing.
Well, there's a lot of hype about some of these Chinese brands coming to the U.S. Here in China, American brands like McDonald's have been part of
life here for years.
YURKEVICH: Chinese companies are moving to the United States at the same time that we're in a trade war with China, but U.S. consumers don't seem to
care. They just want a good cup of coffee or their chance to get their hands on the ever elusive Labubu.
(END VIDEOTAPE)
KINKADE: Well, U.S. markets closed higher to finish the trading week. The Dow rose rather steadily throughout the day, closing about two. 100 points,
just over 200 points higher, so shy of an all-time record that it set in December.
Well, 3M closed on top, finishing more than one percent higher. United Health also ended the session in green. It's been under pressure recently
because of a U.S. investigation into its Medicare billing practices. A few health stocks closed at the bottom. Johnson & Johnson fell more than seven
tenths of a percent overall, though, U.S. markets have been on a roll recently. If the Dow has a couple more sessions like this, it'll break that
all time record soon enough.
Well, that is QUEST MEANS BUSINESS, I'm Lynda Kinkade. Stay with CNN. We'll "THE LEAD" with Jake Tapper is next.
(COMMERCIAL BREAK)
END
