Return to Transcripts main page
The Brief with Jim Sciutto
Bondi Informed Trump He was In Epstein Files; U.S. House Committee Subpoenas Ghislaine Maxwell; Zelenskyy Promises New Anti-Corruption Bill; Russia And Ukraine Agree To Prisoner Swap; Bryan Kohberger Sentenced To Life In Prison; U.S. And Japan Agree With 15 Percent Tariffs; European Lawmakers Meet U.S. Counterparts; Alphabet Reports Better-Than-Expected Results; Tesla Sales Dropping 12 Percent In Latest Quarter. Aired 6-7p ET
Aired July 23, 2025 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[18:00:00]
JIM SCIUTTO, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world. I'm Jim Sciutto in Washington. And you're watching
"The Brief."
Just ahead this hour, sources tell CNN that Donald Trump was informed his name appears in the Epstein files before the Justice Department announced
there would be no further disclosures. Volodymyr Zelenskyy tries to assure protestors in Kyiv he is not backing down from the fight against
corruption. And Spain will meet England in the Women's Euro 2025 Finals after beating Germany.
We begin with multiple breaking developments today in the Jeffrey Epstein controversy despite repeated efforts from the White House to try to move on
from this story. Sources tell CNN that President Trump was told by his attorney general, Pam Bondi, back in May that his name appears in the so-
called Epstein files multiple times.
Officials say Bondi told him several other high-profile figures were also mentioned. However, there was no evidence of a client list nor was there
evidence refuting that Epstein died by suicide in jail while awaiting trial on sex trafficking charges.
Last week, President Trump was asked directly whether he was briefed by Bondi.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Did she tell you at all that your name appeared in the files?
DONALD TRUMP, U.S. PRESIDENT: No, no. She's given us just a very quick briefing and in terms of the credibility of the different things that
they've seen.
(END VIDEO CLIP)
SCIUTTO: It's worth noting that Elon Musk posted back on June 5th, while in the midst of a fight with the president, that, quote, "Trump is in the
Epstein files." And he claimed that the real reason they have not been made public is because of that. That post now appears to have been deleted by
Musk. However, the internet keeps records.
Just moments ago, a House Oversight Subcommittee voted to subpoena the Justice Department to release all files related to Epstein. The House
Oversight chair would now have to sign that subpoena before it can be officially issued. James Comer has already issued a subpoena for Epstein's
former associate, Ghislaine Maxwell. That order asks for a deposition on August 11th at the federal prison in Florida where she is currently serving
20 years.
Manu Raju is on Capitol Hill for us. So, you and I spoke last hour. This vote was a surprise. Democrats it seems caught Republicans off guard, but
they got some votes here. It moves forward. This small step. What happens now?
MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Yes, we do expect the subpoena to be issued this by committee rules. The full committee chairman,
James Comer, is essentially required to issue the subpoena after a vote in a subcommittee. And you're right, Jim, it did catch Republicans by
surprise. Democrats came to this hearing, which was on a separate issue, didn't have nothing to do with Jeffrey Epstein, but they put forward in
motion to call for a subpoena for all the Epstein files.
And knowing that there are several Republicans on that committee who have called for the release of the Epstein files, Democrats try to seize on that
opening and try to expose the divisions within the GOP. You know, a lot of Republicans simply don't align themselves with Donald Trump on this issue,
as Trump wants to move on and forget about this, a lot of Republicans say, we can't forget about this. We've been clamoring for this information for
years. And now, there's a subpoena that will be issued to try to get this information.
Three Republicans ultimately voted with all the Democrats on the committee to approve this on an eight to two vote this afternoon. And I caught up
with one of those Republican members, Congressman Scott Perry of Pennsylvania, one of the more conservative members of the House of
Republican Conference, and I asked him why he supported this measure despite Donald Trump's refusal to release all the Epstein files.
(BEGIN VIDEO CLIP)
REP. SCOTT PERRY (R-PA): I just think it's important that the American people know what's occurred here.
RAJU: The president wants to move on though. He says it's time to move on.
[18:05:00]
PERRY: I have been very clear on my opinion on this issue for a long time.
RAJU: OK. Are your constituents clamoring for this information?
PERRY: Some are. Yes. Yes.
(END VIDEO CLIP)
RAJU: Now, this subpoena is actually going to be fairly broad, Jim, because Republicans actually amended this in the committee to include
communications between Biden officials and the Justice Department over the Epstein matter and also calling for depositions for a whole host of
individuals. That includes Bill and Hillary Clinton, James Comey, Loretta Lynch, the former attorney general under Barack Obama, among a whole host
of other officials that they want to get depositions for. So, there are a lot of different issues on how this ultimately could play out.
But no doubt about it, what Democrats wanted to get here is a subpoena to - - for the Epstein files. Some Republicans have been demanding that as well, and those Republicans join ranks to force this issue. Now, the question is
going to be, how does the Trump Justice Department respond? Jim.
SCIUTTO: So, that's the -- a key question to you. So, you say by House rules that the chairman of the committee has to accept that recommendation,
in effect, issue that subpoena here. What are the options then for the Justice Department in response to that subpoena?
RAJU: Well, we expected to take some time, Jim, because as part of this motion that was just adopted, it includes language to redact all of the
victims' names that are a part of this. That redaction process could take some time, and that's where things can kind of get really bogged down in
the process of getting information. And so, we'll see.
The Justice Department could certainly drag its feet if it wants to, and then it'll be up to Republicans on the committee to try to push harder or
perhaps not push hard, it depends on where they are in this fight for information or if Republicans decide to line themselves ultimately with
Donald Trump on this issue.
So, there's still some questions about how long it'll take, whether they can get the information they want, and what the information will ultimately
say here, Jim. But at the moment, Republican led committee really defying the president at this key time where he is trying to move on from an issue
that has distracted him over the last several weeks.
SCIUTTO: Yes, rare defiance. I mean, we could reasonably say from Republicans on the Hill to the president. Manu Raju on the Hill, thanks so
much.
So, joining us now chief U.S. national affairs correspondent Jeff Zeleny at the White House. I wonder, I mean, this is a standoff perhaps brewing
between House Republicans and the White House with this subpoena. Any reaction to that vote yet from White House officials?
JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: Jim, there's not, but it is a standoff, of course, if it holds. The House is rushing, as
Manu, was saying, to get out of town for their August break. But that is unlikely to make this Epstein matter go away. That is one certainty in all
of this week. There are questions from Republicans and Democrats alike on this. But at least as of now, the White House is not reacting specifically
to that vote.
But we are confirming and learning that the attorney general, Pam Bondi, notified the president back in May that his name was mentioned in these
large troves of files here. The White House is saying, yes, they knew his name was in there, but that does not mean that there was any wrongdoing. Of
course, we know that Trump and Epstein and knew one another in the '90s and beyond. But, Jim, the bottom line is this is one more day concludes here in
Washington, the questions continue.
SCIUTTO: Now, Jeff, correct me if I'm wrong, President Trump was asked whether he was told by Bondi or others if his name was in those files, how
did he answer then and how does that mesh with what we know now?
ZELENY: He was asked about it by reporters in one of his question-and- answer sessions that many of which he holds. And he said, oh, it was a brief briefing. He acknowledged that there was a briefing with his attorney
general, but he said it was very brief and seemed to move on.
He did not, of course, concede or acknowledge that his name -- that he had been told his name was mentioned. But now, the White House is trying to say
after The Wall Street Journal first reported that the attorney general did brief the president, they're trying to say, look, we knew this, but there's
no evidence that there was any wrongdoing here. So, it doesn't square.
So, of course that will be the next question for President Trump himself. You were asked this, you were briefed in May, did you know your name was in
these files?
And of course, Jim, the bottom line to all of this is, is that what is holding up the government releasing files? Is it the fact the president's
name was mentioned or is it simply the redaction of a victims and other things? But certainly, the White House hoping this would blow over. It has
done anything but that here tonight, Jim.
SCIUTTO: No question. And now, they got a problem on the hill. It appears as well. Jeff Zeleny, thanks so much.
ZELENY: Sure.
[18:10:00]
SCIUTTO: Well, Ukraine's president, Volodymyr Zelenskyy, responded to the first significant anti-government protests since Russia's full-scale
invasion. He has now promising a new bill to bolster the independence of anti-corruption authorities there. Protests started in several cities this
week over amendments granting the oversight of two key anti-corruption agencies to a politically appointed prosecutor general who critics say
could then influence investigations or even possibly shut them down. Those amendments were signed by President Zelenskyy himself yesterday.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYYY, UKRAINIAN PRESIDENT (through translator): I will propose to the Verkhovna Rada of Ukraine a bill that will be a response
that will provide strength to the law enforcement system and there will be no Russian influence or interference in the activities of law enforcement
agencies. And very importantly, all standards for the independence of anti- corruption institutions will be in place.
(END VIDEO CLIP)
SCIUTTO: Well, Russia and Ukraine have agreed to another prisoner swap during their latest round of talks today in Turkey. They have, however,
made little progress towards ceasefire. The meeting came nine days into President Trump's 50-day deadline for Russia to agree to a deal.
Joining me now is Yaroslav Yurchyshyn, the chairman of the Committee for Freedom of Speech. He attended protests himself regarding those changes to
those anti-corruption authorities. Yaroslav, thanks so much for joining.
YAROSLAV YURCHYSHYN, CHAIR, UKRAINIAN PARLIAMENT COMMITTEE FOR FREEDOM OF SPEECH: Yes, thanks for your interest to what happened in Ukraine. Really,
we have a prominent protest. It was protest for safety of anti-corruption, independency of anti-corruption infrastructure, and it is the best example
that Ukraine are still fighting corruption because its request not our international partners, but our society, even in time of war.
SCIUTTO: Now, President Zelenskyy seems to have been listening to those protests to some degree. He says he will introduce a new bill. Is this
enough for you and other protestors?
YURCHYSHYN: No, we don't see draft law which will be proposed. But our president still hear society. So, it's totally change approach for
collaboration between society and government, what we see in Russian Federation. So, after the protest, Zelenskyy ready to proposed decision,
but we still don't see this decision.
I hope that it's not a trick and we will have really guarantee for independency and effectiveness of our anti-corruption. Infrastructure,
because this infrastructure was created after Revolution of Dignity and it was part of like civilian agreement between government and our society.
So, we waiting for proposal from the side of president, but the change of position, the hearing of society, it's a good symbol that government are
still under control of Ukrainian society, even in the time of martial law.
SCIUTTO: President Zelenskyy said in justifying this move, and he referenced it again in his comments the night, that there was some Russian
interference in this anti-corruption agency. In your view, was there any credible evidence that you've seen of Russian infiltration?
YURCHYSHYN: I don't see the fact of that. Yes, we have some investigation from the side of special services of Ukraine. It's possible. It's can be
because we do understand how many sources, Russia, in west, in creation of different networks of influencer in social media in even religion
organization. But still, if we have some personal problem in different institution it can be solved through the investigation, which will be
connected with this personality.
[18:15:00]
But to pretend that we try to solve problem of Russia infiltration, but just food under political control, independent institution, it's tried to
play a very bad game with our society and our international partners. So, I don't believe that all this -- all what happened yesterday to sign this
really dangerous law have some connection with Russia infiltration.
SCIUTTO: Has it --
YURCHYSHYN: It was trying to have control for under anticorruption institution because some investigation have connection with people who have
closed affiliation for -- with office of president.
SCIUTTO: Of the president. Has President Zelenskyy damaged his standing in Ukraine with his decision?
YURCHYSHYN: No, I don't think. I think that it's a strong side for politician when mistake was done to agree that, yes, we done mistake, but
we ready to fix it. So, it's in long-term perspective if decision will be done in appropriate way, it'll be strength, not a weakness of president.
SCIUTTO: Yaroslav Yurchyshyn, thanks so much for joining.
YURCHYSHYN: You're welcome.
SCIUTTO: The confessed killer who stabbed to death four American college students in their beds will now spend the rest of his life in prison with
no chance of parole. However, we still don't know why Bryan Kohberger carried out these gruesome murders.
Before the judge handed down his sentence today, the victim's families and friends came face to face with their loved one's killer. In a hushed and
packed Idaho courtroom, they told Kohberger exactly what they thought of him, evil, a sociopath, a murderer, someone the world will forget the
minute the cell doors close behind him. Jean Casarez was inside the Idaho courtroom as today's emotional hearing unfolded.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: The truth is your basic.
JEAN CASAREZ, CNN CORRESPONDENT (voice-over): It was a morning filled with incredible emotion in an Idaho courtroom as heartbroken family members
delivered victim impact statements in the sentencing hearing of Bryan Kohberger.
UNIDENTIFIED FEMALE: I should have been having the college experience and starting to establish my future. Instead, I was forced to learn how to
survive the unimaginable.
CASAREZ (voice-over): Kohberger, the man responsible for brutally stabbing four University of Idaho students to death in their sleep back in 2022.
UNIDENTIFIED FEMALE: I had to sleep in my mom's bed because I was too terrified to close my eyes.
CASAREZ (voice-over): The surviving roommate sharing the trauma they say they have endured since that tragic night.
EMILY ALANDT, READING STATEMENT OF SURVIVING ROOMMATE BETHANY FUNKE: I slept in my parents' room for almost a year. I made them double lock every
door, set an alarm, and still check everywhere in the room just in case someone was hiding.
UNIDENTIFIED FEMALE: What he had shattered me in places I didn't know could break.
CASAREZ (voice-over): And family member after family member expressing their pain.
SCOTT LARAMIE, STEPFATHER OF MADISON MOGEN: We will grow old without our only child, our bright, beautiful friend and daughter.
KRISTI GONCALVES, MOTHER OF KAYLEE GONCALVES: The emotional toll you've inflicted on me is immeasurable. I live with a constant ache with birthdays
that are now memorials, with holidays that feel hollow, with empty chairs that scream louder than words ever could.
CASAREZ (voice-over): And their anger. Victim Kaylee Goncalves' father moving the lectern to direct his comments directly to his daughter's
killer, dramatically shifting the tone in the courtroom.
STEVE GONCALVES, FATHER OF KAYLEE GONCALVES: The world's watching because of the kids, not because of you. Nobody cares about you. You're not worth
the time, the effort to be remembered. In time, you will be nothing but two initials forgotten to the wind, no visitors, nothing more than initials on
an otherwise unmarked tombstone.
CASAREZ (voice-over): Perhaps a most striking statement coming from Kaylee Gonzalez's sister.
ALIVEA GONCALVES, SISTER OF KAYLEE GONCALVES: Your textbook case of insecurity disguised as control. Let me be very clear, don't ever try to
convince yourself you mattered just because someone finally said your name out loud.
CASAREZ (voice-over): The convicted killer appeared emotionless while in court and declined to address the court when given the chance.
JUDGE STEVEN HIPPLER, IDAHO 4TH JUDICIAL DISTRICT: The time is now calm to end Mr. Kohlberg's, 15 minutes of fame. It's time that he be consigned to
the ignominy and isolation of perpetual incarceration.
CASAREZ (voice-over): The judge not sparing his own harsh words for the killer.
HIPPLER: I'm unable to come up with anything redeeming about Mr. Kohberger because his grotesque acts of evil have buried and hidden anything that
might have been good or intrinsically human about him.
[18:20:00] CASAREZ (voice-over): Sentencing him to life in prison without the possibility of parole for all four counts of murder plus fines and 10 years
for the burglary charge.
HIPPLER: I will not attempt to speak about him further other than to simply sentence him so that he is forever removed from civilized society.
CASAREZ (voice-over): And as he heads to prison, he does so with the parting words of the families he tried to silence.
A. GONCALVES: I see through you. You want the truth? Here's the one you'll hate the most, if you hadn't attacked them in their sleep in the middle of
the night like a pedophile, Kaylee would've kicked your fucking ass.
(END VIDEOTAPE)
SCIUTTO: The emotion there from the sister of one of those young Idaho students who was murdered. Well, coming up, a new trade deal between the
U.S. and Japan. What are the details in the deal, what it means for Japan's auto industry and Americas? That's next.
(COMMERCIAL BREAK)
SCIUTTO: On Wall Street, U.S. stocks rallied with the Dow gaining more than 500 points, the S&P set another all-time high, the NASDAQ also hitting
another record. This follows Japan's Nikkei, which was up more than 3 percent. Toyota and Honda soared to double digit gains, this after the U.S.
and Japan agreed to a new trade deal. The two nations reaching an agreement which will impose 15 percent tariffs on Japanese imports, including cars
and auto parts.
Under the deal, Japan will also create a $550 billion fund to make investments in the U.S. President Trump had previously threatened Japan
with a 25 percent tariff. The Japanese prime minister welcomed the deal as, quote, "the lowest figure to date for a country that has a trade surplus
with the United States."
Earlier today, a United auto workers leader told CNN he doesn't believe this deal is good for U.S. automakers.
(BEGIN VIDEO CLIP)
TONY TOTTY, PRESIDENT OF UAW LOCAL 14: Just that first glance, I don't like the deal. You know, Japan doesn't import many U.S. vehicles. Last year it
was around 16,000 where we take in $40 billion of their imports. So, you know, even if you say 15 percent to 15 percent, it's still not a good deal
for us. I think this is a better deal for us rice producers than it is the U.S. auto worker.
(END VIDEO CLIP)
[18:25:00]
SCIUTTO: Seijiro Takeshita is a professor of management and information at the University of Shizuoka. Thanks so much for coming on.
SEIJIRO TAKESHITA, PROFESSOR, MANAGEMENT AND INFORMATION, UNIVERSITY OF SHIZUOKA: Thank you for having me.
SCIUTTO: So, first question is, is this deal in the interests of the U.S. and Japan?
TAKESHITA: Well, yes, at least it's going forward. And you can see, you know, the reaction to the stock market that, you know, it basically soared
yesterday on back of the fact that, you know, most of these Japanese automobile exporters are going to have a less burden than initially
expected. You know, now the taxation is down to 25 to 15 percent.
But that said, still, it is a vast increase, you know, to 15 percent. Basically, I don't find any logical consistency in this, you know, whole
deal, if you want to put it that way. As you know, the taxation of American cars into Japan is basically zero. So, well, you know, we -- you just have
to move on. But, you know, certainly, it is a bitter relief, but I think, you know, we just had to play the poker game of bluff and calling the bluff
by Mr. Trump at the end of the day.
SCIUTTO: Does this do anything to address the trade surplus? I mean, Trump said that was what he is trying to correct here. But fact is Japan does not
import that many U.S. cars. There's just not a lot of demand for U.S. cars there. It exports 40 billion some odd I think to the U.S. Does this correct
that imbalance at all?
TAKESHITA: To a certain degree, because many of the Japanese manufacturers are now trying to transfer the production base to the United States. But
that said, if it's 15 percent, I think a lot of manufacturers would not necessarily, you know, for example, utilize their base in Canada or Mexico.
Instead, they might export continuously from Japan with higher price tag.
And also, going back to your previous interviewee's comment, you know, as you just noted, you know, the fact of the matter is, it is not that we're
not buying foreign cars. If you look at the Japanese consumers, they're buying very heavily into, for example, German cars.
SCIUTTO: Yes.
TAKESHITA: It's simply the point where, you know, U.S. cars aren't competitive in the Japanese market.
SCIUTTO: Yes. I wonder, this is a very basic question for you, because I want to show a picture here, up on the screen, which shows Donald Trump as
he was announcing this deal. And in the picture you can see there, as we zoom in, that the numbers on the placards in front of him are different
than the numbers that he announced. It says 10 percent tariff rate on the paper. He changed it to 15 percent. It says $400 billion investment, he
announced 550 billion.
I mean, do the U.S. and Japanese have the same numbers that President Trump announced today? Is it written down somewhere?
TAKESHITA: I just told you that, you know, I think the Trump administration is playing a game of poker, and there you go. You just displayed it on this
screen. I don't think there was a very strong, I'd say, pre-negotiations that went on. And you know, the number that you just cited, you know, $550
billion, I mean, it's not written down. So, it could change tomorrow. We might be having the same interview tomorrow. And I think that's one of the
worries that Japanese corporations have, you know, U.S. is slipping into anocracy away from democracy. And for that reason, I think the country risk
is rising quite substantially.
So, you know, I think a lot of Japanese companies would want to put their foreign direct investment to the states, to the back burner. Although, the
fact is that we are the highest investor into the United States. I can easily see why many of Japanese companies would be worried to make long-
term commitment under this regime.
SCIUTTO: Before we go, I mean, even just a few days ago there were fears that the U.S. and Japan were far away from a deal. But here you have it.
What got it over the finish line?
TAKESHITA: Well, at least we've come to a deal. It's at least a milestone, and that gives a bit of a -- that, you know, Japanese politics here are
very much in confusion state, if I may say to the least, because, you know, the current government do not have the majority in both the upper and the
lower house. We just had a devastating loss on the upper house by the LDP, the ruling party.
So, the instability is very, very clear. And from that point of view, yes. Having at least some kind of deal at least certainly better than 25 percent
as initially proposed, is certainly at least some milestone that we can at least look forward to.
SCIUTTO: Seijiro Takeshita, thanks so much for joining us.
TAKESHITA: Thank you.
[18:30:00]
SCIUTTO: Coming up after the break, the vice president of the European Parliament joins me live here in Washington as he visits to reinforce
cooperation between the E.U. and the United States. Both sides appear to be inching towards their own trade deal.
(COMMERCIAL BREAK)
SCIUTTO: Welcome back to "The Brief." I'm Jim Sciutto. And here are more international headlines we're watching today.
The head of the World Health Organization says that Palestinians and Gaza are suffering a manmade mass starvation due to Israel's aid blockade.
Israeli officials are blaming Hamas entirely for the food shortage. Gaza's health ministry says at least another 10 people have died from malnutrition
in just the past 24 hours.
Attorney General Pam Bondi told President Trump in May that his name was in the Epstein files, this according to sources familiar with that discussion.
Officials say Bondi told the president that other high-profile figures were also mentioned, but there was no evidence of a so-called client list nor
any evidence refuting that Epstein died by suicide. The White House dismissed the story as fake news.
The man who pleaded guilty to murdering four University of Idaho students has been sentenced to life in prison with no chance of parole. The judge
called Bryan Kohberger, a quote, "faceless coward," and said their deaths were an unspeakable evil. The prosecutor said the killer had no background
of violence or a criminal history before he carried out those murders.
The United States could be headed towards a trade deal with the European Union, which would see a 15 percent tariffs on goods imported from the
E.U., that according to multiple reports sourcing E.U. diplomats. The final say, of course, comes down to President Trump and European leaders.
[18:35:00]
A delegation of E.U. lawmakers is in Washington right now. They've been meeting with U.S. officials and lawmakers, as well as officials at the IMF
and World Bank. Among them, my next guest, the vice president of the European Parliament, Victor Negrescu. Thanks so much for joining.
VICTOR NEGRESCU, VICE PRESIDENT, EUROPEAN PARLIAMENT: Thank you for the invitation.
SCIUTTO: So, there's a lot of talk of positive movement towards a deal. Are the U.S. and the E.U. close to an agreement?
NEGRESCU: We hope for a positive movement. And we talked about that with lawmakers here at Washington. And of course, there were some positive
signs, but nevertheless, we still do not have an agreement. 15 percent could be quite high for European companies. So, therefore, I would not say
there is an agreement yet.
I hope, nevertheless, that we can identify way forward. We have this deadline, 1st of August. Everyone is concerned, including U.S. companies
that we met today actually here in Washington, because we know that those tariffs will create problems in terms of trade. So, every year our trade
level goes up to $1.5 trillion, which is a huge amount. So, we don't need to lose this opportunity and this potential.
So, therefore, we hope for a conclusion. We hope for a resolution. But also, we hope that the tariff will not go up to 15 percent.
SCIUTTO: Now, would this be both countries paying equal tariffs or Europe, their E.U. would be paying higher tariffs or rather E.U. imports to the
U.S. would face higher tariffs than U.S. imports to Europe?
NEGRESCU: For the time being, the rumor is that Europe will pay the 15 percent, which, again, will be quite unfair.
SCIUTTO: Yes.
NEGRESCU: And knowing that, of course, a lot of U.S. companies have access to the European market, especially in terms of services where basically
American companies dominate the market in Europe. So, we hope, again, for a fast conclusion of the negotiations. We believe 15 percent might be too
high. Nevertheless, we can identify other ways, other solutions by applying tariffs, but in the same time, seeing further investment coming from the
U.S. in Europe, especially on defense, especially on energy.
Lawmakers here were very clear in underlining that we need further cooperation on those respective topics. There is a lot of potential going
on. Europe just recently presented its future long-term budget, a 2 trillion euros budget, which could be used also by U.S. companies if we do
not apply those tariffs.
SCIUTTO: So, why would the E.U. agree to pay, if this is where it goes to pay tariffs that the U.S. would not be paying?
NEGRESCU: I think, of course, it would be hard to convince all member states to agree upon those tariffs, but for us, we see this partnership --
a partnership that unites two regions that are strong on democracy. And we believe it's not only about economy, it's not only about trade, it's about
common values, it's about protecting ourselves against our competitors, especially China. But this is why we hope that the tariffs will not go as
high as that.
Because again, this will have an impact on trade. I was visiting earlier last week in Boston some strong U.S. investments here in America. And they
were using 70 percent component that were coming from Europe. So, therefore, also U.S. companies to do their investment here in the U.S. need
the knowhow that exists in Europe.
And of course, if you look at the biggest American companies, they survive, they develop because they have access to the European markets. So, imagine
that those companies themselves will need to pay those tariffs. So, it's not only European companies paying the tariffs, it is mainly American
companies working in Europe and in the U.S. paying those tariffs. And this might have an impact on trade.
SCIUTTO: Let's say you come do a deal tomorrow or next week or, you know, before the August 1st deadline, do E.U. leaders, officials believe that the
U.S. will stick to the terms of the deal? Because President Trump has a history of changing this year, but if you look back to his first term, he
signed, for instance, trade agreements with Canada and Mexico, which in the current trade war, he is now violating his own agreements. Do you have
confidence that any agreement will stick?
NEGRESCU: We need to base this agreement on confidence, and this is why European experts were very clear in underlining that if we reach an
agreement, this agreement has to apply across all sectors. Because we have seen a couple of months ago those tariffs being applied on steel and
aluminum, which had a huge impact, especially on eastern European countries that are strong partners of the U.S., including my country, Romania, that
exports steel and aluminum to the U.S.
So, we are strong partners. We understand maybe the current discussions here in the U.S. But if we reach a deal, the deal has to be respected
across the board.
SCIUTTO: Now, the E.U. has been speaking to China about the possibility, at least, of growing trade between E.U. -- the E.U. nations and China. Do you
believe that that will happen regardless of a deal with the U.S.?
[18:40:00]
Because I've spoken to European officials who've said, listen, as the relationship sours with the U.S. we will look elsewhere for trade. Not to
completely replace U.S. trade, but perhaps to grow more somewhere else. Is it possible that E.U. grows its trade with China?
NEGRESCU: I hope Europe will not be pushed in developing trade with other countries that do not share our values. So, this is why this agreement is
crucial. And we have many member states that, you know, are worried about our movement towards a stronger partnership with China, countries that
refuse this type of partnership.
So, this is why, personally, I'm pushing for this kind of trade agreement with the U.S. But indeed, Europe has to survive. Our economy needs to
survive. So, if we cannot have access to the American market, then our companies needs to identify new markets. It can be Brazil, it can be
Mexico, it can be Canada, or it can be China.
But of course, we all understand that it's also a strategic choice. So, it's not only about trade, it's about defense, it's about our security,
it's about the kind of future we want to build, but also, it's about the security of the American people because we fully understand the challenges
that the U.S. is facing right now in Asia and why the U.S. needs to focus also more on China. And we are ready to help the U.S. doing so, but we
cannot be pushed around. And in this regard, the tariff agreement is crucial for our future.
SCIUTTO: Victor Negrescu, we wish you the best of luck in the ongoing negotiations. Thanks so much for joining.
NEGRESCU: Thank you so much.
SCIUTTO: Coming up on "The Brief," Alphabet and Tesla earnings are now out, what those numbers reveal, what they also mean for investors. We'll take a
look coming up.
(COMMERCIAL BREAK)
SCIUTTO: Google's parent Alphabet reported better-than-expected results for the second quarter. It's cloud revenues growth surged about 32 percent.
Advertising sales also jumped more than 10 percent. Tesla, however, posted a second straight quarterly revenue decline, missing Wall Street estimates.
The EV maker saw its steepest decline with a 12 percent fall in revenue, steepest in more than a decade.
Ross Gerber is the CEO of Gerber Kawasaki Wealth and Investment Management. Also, an early Tesla investor. Ross, good to have you.
ROSS GERBER, CEO, GERBER KAWASAKI WEALTH AND INVESTMENT MANAGEMENT: Thanks for having me.
SCIUTTO: So, Tesla's not show really any signs of turning things around. I mean, do you expect that to happen eventually here or is this a long, slow
race to the bottom?
GERBER: Well, I just listened to the conference call and it just doesn't seem like anybody at Tesla wants to challenge Elon and the fact that he's
actually the cause of the decline in sales.
[18:45:00]
And so, as much as it's great to have Elon back focused on Tesla and working full time again at the company, he's also one of the reasons people
aren't buying the cars. So, until there's some attempt by Tesla to change the narrative around Elon and the cars and this connection between his
extreme political beliefs, it's going to be a hard time for Tesla because consumers don't want their products.
SCIUTTO: So, is that a statement for him or does he have to be gone to get over that?
GERBER: Well, you have a Catch 22 because you want Elon working at Tesla because he's obviously the most qualified person to be the CEO there and so
much of the innovation at Tesla is relying on what Elon's been pushing. But at the same respect, he's so divisive on Twitter that it's just like hugely
detrimental.
And then his whole foray into politics, which, you know, seemed like this master stroke, you know, 6, 7, 8 months ago is a disaster for him and for
Tesla's wellbeing. Because now, we're going to be losing all the regulatory and consumer benefits for buying EVs in the next month and a half. And this
is going to be really hard for Tesla.
And so, you know, things just don't look that great there, you know, in the short and medium-term, and then, you know, if they don't really realize the
goals of the long-term, Tesla's, you know, best days might be behind it.
SCIUTTO: What about EVs in this country, given that those tax incentives are going to go away, and I think one can reasonably say you have an
administration now that's openly hostile to electric vehicles. What does that mean for EVs in this country? Is it a short-term blip?
GERBER: Well, I think that consumers understand, not fully, but for the most part, that EVs are better cars. They're lower cost of operation.
They've been buying EVs all around the world in a much greater clip than here in the United States. And that's kind of the sad thing about the whole
thing, is that China and Europe are really adopting EVs and really trying to do something for climate. And the U.S. used to be a leader in this. And
now, we're sort of the follower and we're sort of moving away from EVs and climate solutions at a time when they're more crucial than ever.
So, yes, it's a really big problem that, you know, the government isn't incentivizing clean energy and transportation. But at the same respect, I
think consumers want these products and that they can be delivered at reasonable prices, then people will choose them anyways.
SCIUTTO: Alphabet, just to touch on another company, says that A.I. is positively impacting every part of its business. Are you seeing that in
multiple companies right now?
GERBER: Well, we're seeing it depending on the type of company, what -- how their business actually functions and whether A.I. can really be a huge
benefit. A business like mine in financial services, it's just a huge benefit, and A.I. is just a part of what we do now every day, whether it's
research or writing or just trying to find information, you know, A.I. is pretty damn useful, I have to say.
I think for other types of businesses and for many big companies in America, they're still trying to adapt to the rapid changing technology
environment. And in many cases, they're just not sure yet where this will help them. But I think over time the efficiency gains in A.I. for all
businesses will become fairly obvious. And I think it's one of the more impactful tech, you know, I would say themes that I've seen in my career.
And I've invested in technology themes for over 30 years. So, I'm pretty excited.
And a company like Google where a lot of people don't think very highly, like their search business is going to be disrupted and such I think are
underestimating Google's power and knowledge of the internet, and we're starting to see that Google is not being hurt via A.I. and then continues
to help companies like Google because they know so much information and such valuable information that if you're really going to run A.I. models
that are accurate, you kind of need Google data and I think that that puts Google on a pretty decent position long-term.
SCIUTTO: Ross Gerber, always good to talk.
GERBER: Yes, thanks for having me.
SCIUTTO: Coming up next, the teams are set for the Women's Euro 2025 Final. Find out who will be on the pitch this Sunday in Switzerland right after
this short break.
(COMMERCIAL BREAK)
[18:50:00]
SCIUTTO: So, we now know who will be playing in the Women's Euro 2025 Final. England staged a dramatic comeback Tuesday against Germany to make
its second consecutive final where they will take on Spain, who reached the final after an extra time win over Germany. The England-Spain match set for
Sunday in Switzerland. World Sports Don Riddell joins us. So, tell us first about this Spanish win over Germany, first ever?
DON RIDDELL, CNN WORLD SPORT: Yes, absolutely. I think they would argue it's been a longtime coming. This tournament has just been absolutely
brilliant, Jim, and it's served up another nail biter on Wednesday night after, as you say, the defending champions, England, reached the final with
a heart stopping win against Italy in extra time. The next semi between the world champion Spain and the eight-time European champions, Germany, also
went the distance. And this game had everything, everything that is except a goal in the first 90 minutes. That was the closest Spain came late in the
first half.
Irene Paredes heading the ball against the base of the post, La Rocka had their chances, as did the Germans, who, to be honest, really could have won
it right at the death. First. Clara Beul (ph) fired a free kick, just wide at the post. And then deep into injury time, look at this, a deflected shot
forced a desperate save out of (INAUDIBLE) who then had to recover quickly and brilliantly to deny Carlotta Wamser. So, that meant extra time.
And then look at this. This is just such a wonderful turn and finish and a wonderful story. Aitana Bonmati, arguably the biggest star in the women's
game, with a goal in the 113th minute. That was tough on the German goalie, Ann-Katrin Berger, who'd had a wonderful tournament. She won't be thrilled
to have been beaten at the near post like that, but a brilliant finish from Bonmati. Remember, she is the two-time Ballon d'Or.
And also, I'd kind of forgotten this in the moment when she scored. She also almost missed this tournament. She was in hospital just days before
the start of this tournament being treated for meningitis. Her involvement in this tournament was in considerable doubt. And look at this. Now, she
has taken her country into the final of the Euros for the very first time, and it sets up a tantalizing final against England, the Lionesses, the
defending champions. It is also a repeat of the last World Cup Final in 2023 in Australia. Spain won that game to become world champions. England
have a chance for revenge on Sunday night.
But it's going to be a fascinating game. England of really ridden their luck to get to this point. Spain, I think, will be the favorites, but who
knows? It's all set to be a great final.
SCIUTTO: Wow. What a comeback from the hospital bed to score that goal, which is -- I mean, I'd like to know what the width of the goal is from
that angle.
RIDDELL: It's about that much.
SCIUTTO: Yes. Don Riddell, thanks so much.
RIDDELL: All right.
SCIUTTO: Well, the rankings are out for the world's most powerful passports and three Asian nations top the list. According to the Henley Passport
Index, Singapore once ranked number one, while South Korea joined up to join -- moved up to join Japan at the number two spot. The U.K. meanwhile
continued its downward trend, coming in at number six. The U.S. dropped to its lowest level ever, 10th place. The Henley Index ranks the world's
passports according to the number of destinations their holders can access without a visa.
[18:55:00]
In today's Good Brief, legendary musicians, Stevie Nicks and Lindsey Buckingham of Fleetwood Mac are back together. According to a news release,
they will be re-releasing a reissue of Buckingham Nicks, their first and only studio album they put out as a duo back in 1973. This comes as the
famously on again, off again collaborators have recently been teasing something of a reunion. They had both posted lyrics to their song, "Frozen
Love" of Buckingham Nicks on Social Media.
Thanks so much for your company today. I'm Jim Sciutto in Washington. You've been watching "The Brief." Please do stay with CNN.
(COMMERCIAL BREAK)
[19:00:00]
END
