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The Story Is with Elex Michaelson
Trump Announces Israel-Lebanon Talks for Thursday, Possibly Another U.S.-Iran Talks; Welcome Ceremony Held for Pope Leo in Cameroon; Ethics Investigations Reverberate Across Capitol Hill; L.A. County D.A.'s Office Investigating Eric Swalwell Allegations; Accuser Says Swalwell Sexually Assaulted Her in 2018; China Beats Forecast with 5% GDP Growth Despite Iran War; Iran Threatens to Halt More Shipping if Blockade Not Lifted; Liv Golf CEO Says Operations Continue Amid Funding Reports; Colombia to Cull Dozens of Hippos Linked to Pablo Escobar. Aired 12-1a ET
Aired April 16, 2026 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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ELEX MICHAELSON, CNN ANCHOR: It's pretty amazing. What a life she has led in addition to him, both of them. Such important pioneers in the history of sports and race, and just America itself.
LAURA COATES, CNN ANCHOR: Somewhere the spirit of Larry King, ultimate, consummate Dodgers fan, is smiling. And so there you go.
What do you have coming up on your show tonight?
MICHAELSON: Yes, back to the Brooklyn Dodgers.
COATES: Yes.
MICHAELSON: We've got a lot coming up tonight including Lisa Bloom who is the -- one of the attorneys representing one of the accusers in the Swalwell case.
COATES: All right.
MICHAELSON: Plus, we've got some breaking news from the Middle East as well.
COATES: All right. You have a great show.
MICHAELSON: Let's start THE STORY IS right now.
(BEGIN VIDEOTAPE)
MICHAELSON: THE STORY IS possible negotiations. The U.S. and Iran working towards diplomacy while the U.S. Navy patrols near the Strait of Hormuz.
UNIDENTIFIED MALE: Turn around and prepare to be boarded. If you do not comply with this blockade, we will use force. MICHAELSON: THE STORY IS legal repercussions. Lisa Bloom represents
one of Eric Swalwell's accusers. She's here live to respond to Swalwell's lawyer who says, quote, "regret is not rape."
THE STORY IS the future of pro-golf. New reporting suggests the Saudi funded LIV Golf league could soon be no more. Alan Shipnuck, author of "LIV and Let Die," is with us live.
(END VIDEOTAPE)
ANNOUNCER: Live from Los Angeles, THE STORY IS with Elex Michaelson.
MICHAELSON: And our top story is breaking news. Just in to CNN, President Trump announcing direct talks in the day ahead between Israel and Lebanon. He posted on Truth Social just a few minutes ago, quote, "trying to get a little breathing room between Israel and Lebanon. It has been a long time since the two leaders have spoken like 34 years. It will happen tomorrow. Nice."
This comes amid a wave of optimism from the Trump administration about the war with Iran. A Pakistani delegation is in Tehran for more talks in the days ahead. And the White House says it feels good about the prospect for a deal that could end the war. White House Press Secretary Karoline Leavitt says any additional talks would likely take place in Pakistan, where Vice President J.D. Vance led the U.S. delegation last weekend.
President Trump tells FOX News that he sees the war as, quote, "very close to over." Here's more from the White House.
(BEGIN VIDEO CLIP)
KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: At this moment, we remain very much engaged in these negotiations, in these talks. You heard from the vice president directly and the president this week that these conversations are productive and ongoing. And that's where we are right now. Nothing is official until you hear it from us here at the White House. But we feel good about the prospects of a deal.
(END VIDEO CLIP)
MICHAELSON: Now, the U.S. military claims its blockade of Iranian ports has completely halted Iran's sea trade. But Iranian state media report four vessels traveled to and from Iran on Wednesday. And as gas prices in the U.S. ticked down slightly to a national average of $4.11 a gallon, we got an optimistic prediction from the Treasury secretary of the United States.
(BEGIN VIDEO CLIP)
SCOTT BESSENT, TREASURY SECRETARY: I'm optimistic that during the summer we will see gas with a three in front of us sooner rather than later. So I've been meeting with a lot of my Middle Eastern counterparts, the finance ministers, and they all say that once the straits are open, they can start pumping again within one week.
(END VIDEO CLIP)
MICHAELSON: Let's bring in CNN's Ivan Watson live from Hong Kong.
Ivan, let's start with that breaking news. What we know about this meeting between the leaders of Israel and Lebanon.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, you know, we're going to have to hear what the two governments have to say after President Trump made this announcement. Recall this week has been historic for these two countries, which have officially been in a state of war, and they had not had any bilateral meetings in more than 40 years until ambassadors from Israel and Lebanon met at the State Department, and talked about having more negotiations in the future.
There's still very much an active conflict underway. The Israeli military has occupied Southern Lebanon. It continues to bomb different cities and towns, and insists that the civilian population, hundreds of thousands of people, will not be allowed to return to their homes in Southern Lebanon while talking about creating a kind of security cordon around Northern Israel.
It's important to note that while the Lebanese government is open to negotiations, there is opposition from Hezbollah, the most powerful militia in the country, backed by Iran, which has opposed any negotiations at all with Israel. So this puts the Lebanese government in a tricky position where it has been unable to control Hezbollah. It wants the killing and the bombing to stop. Recall more than 2,000 people have been killed across Lebanon over the course of the last month and a half.
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And in a single day this week, the Israeli airstrikes killed at least 35 people. Many of them are civilians and medical workers as well. The Israeli government has insisted that it will not have a ceasefire in conjunction with the current ceasefire around Iran and the U.S. so watch this space. We'll see what form these talks that President Trump has suggested could take.
MICHAELSON: Meanwhile, Ivan, let's talk about the other big story we're following right now is the Strait of Hormuz, and also some action in the Red Sea as well.
WATSON: Threats coming from Iran. Look, there is still a state of war between the U.S. and Iran. We're still in a temporary ceasefire that is due to expire on Monday. We're hearing optimism from the White House about negotiations. The Pakistanis, who have hosted talks, the first round of talks, have been fanning out across the region. Pakistan's top general in Tehran this week meeting with Iranian officials, probably ferrying messages from the U.S. and back, their trusted negotiating party at this point.
And we've been hearing mixed messages from the Iranians in this situation. The Iranian foreign minister saying that Iran is committed to peace and stability in the region. Here's what the head of Iran's Atomic Energy Agency had to say. (BEGIN VIDEO CLIP)
MOHAMMAD ESLAMI, HEAD OF IRAN'S ATOMIC ENERGY ORGANIZATION (through translator): If Iran's rights and interests, which are the legal rights of a nation, are recognized and its dignity respected, naturally the negotiation can be fruitful. But if it continues, as it usually does, relying on deception and a lack of commitment and failure to adhere to agreements and set terms, then it naturally cannot succeed.
(END VIDEO CLIP)
WATSON: But a major -- a senior military commander, Major General Ali Abdullahi, he has called the U.S. Navy blockade of Iranian ports illegal and he has said that this is a violation of the ceasefire and extended threats beyond the Persian Gulf to the Sea of Oman and the Red Sea. So there's still some real belligerent rhetoric out there.
Just to give you a sense, this is what we think that the U.S. Navy, the message it's sending to ships coming and going from Iranian ports. Listen to this excerpt.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Do not attempt to breach the blockade. Vessels will be boarded for interdiction and seizure, transiting to or from an Iranian port. Turn around and prepare to be boarded. If you do not comply with this blockade, we will use force.
(BEGIN VIDEO CLIP)
WATSON: Elex, I've been on U.S. military planes and on ships and seen officers reading these kinds of scripts to other aircraft and ships. That's probably what this kind of is, what the message is that they're sending. Conflicting reports about whether or not some ships are getting through or not right now. But long story short, the shipping through this vital waterway is severely restricted.
And we've got warnings from things like the IMF and the International Atomic Energy Agency about threats of a global energy crisis on top of the pressures we're already seeing on the global economy and no end in sight of that.
MICHAELSON: Wow. A lot going on right now. Ivan Watson for us in Hong Kong, thank you.
For more analysis, we're going to stay in Hong Kong and joined by Jasmine El-Gamal, the founder and CEO of Avarose Strategies. She's also a former Middle East adviser at the U.S. Defense Department and host of the podcast "The View from Here."
You're a top Middle East expert. Let's start with this big breaking news out of the Middle East. President Trump just minutes ago posting on Truth Social, trying to get a little breathing room between Israel and Lebanon. It's been a long time since two leaders have spoken. 34 years. It will happen tomorrow. What's your reaction to that? JASMINE EL-GAMAL, FOUNDER AND CEO, AVEROS STRATEGIST: Well, thank you
so much for having me. And yes, indeed, this is really, really big news. The last time Israelis and Lebanese were engaged in direct talks was in the early '90s, under the auspices of the U.N.. So this is a real -- a significant development here. And the other reason why it's significant is that the Lebanese, the Lebanese-Israel track is now being sort of tended to separate from the Iran-U.S. track, which is something that the Americans wanted.
The Iranians were trying to tie the two tracks together and talk about it as some sort of grand bargain. But it looks like now those talks are going to go on regardless of what happens with the U.S. and Iran. Now, I have to tell you, when I was at the Pentagon, during the Obama administration, I covered the Lebanon file. And so I've been working on these issues for a long time.
And I will say that while ceasefire negotiations and an eventual ceasefire agreement are a really welcome development, it really is just putting a band-aid on a bullet hole.
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The issues between the Lebanese government and Hezbollah, between Hezbollah and Israel, and between the Lebanese government and the Israeli government, are all overlapping but slightly distinct. And in order to really get to the root causes of those issues, we need to do more than just have a ceasefire, which of course can be violated as has been the case over the last two and a half years.
We need to talk about support and building the capacity of the Lebanese armed forces so that they can exercise a monopoly of force over their country. And we also need to talk about sustained diplomatic and economic support to the Lebanese government.
MICHAELSON: Wow. Meanwhile, we're just looking at some images of Benjamin Netanyahu. I know you've written a lot about this. What was his role in possibly pushing the U.S. into this war? And at this point, does Benjamin Netanyahu have any incentive to help the U.S. get out of this war?
EL-GAMAL: Well, two very good questions. The first one, Benjamin Netanyahu stated himself that this has been a lifelong dream of his for 40 years to get the U.S. and Iran to enter into a joint war. Sorry, to get the U.S. and Israel to enter into a joint war against Iran. This was happening when I was in government. President Obama rejected the option of going to war with Iran, of course, because we all knew what the Iranian response would be, especially if Iran felt existentially threatened.
And we've seen all of that play out over the last month, over a month. So, so, that -- Benjamin Netanyahu definitely played a role in pushing President Trump to do this, although I always say President Trump has agency and he's the one who decided to make that decision at the end of the day. In terms of whether Prime Minister Netanyahu has an incentive to stop this war, he does not. His goal was regime change. That hasn't yet happened. His goal in Lebanon is to completely destroy Hezbollah and allow the
tens of thousands of Israelis who've been displaced from their homes in the north of Israel to come back. That hasn't happened yet. So Benjamin Netanyahu's goals are far from over. But as I've said for the last few weeks, there would come a time when Israeli and U.S. interests started to diverge. And I think we're starting to see that now where the U.S. is going to do its own negotiations with Iran, help the Lebanese government talk to the Israelis and turn down the temperature there, regardless of what Prime Minister Netanyahu wants.
MICHAELSON: Can you talk about the way that this war is changing, the way that Americans view Israel? We had sort of this very interesting vote in the United States Senate, where 40 different Democrats voted against funding Israeli arms. That is a major change than just a generation ago, when AIPAC, the Israeli, you know, political force, basically had total bipartisan support. Talk about this very, very different moment in history.
EL-GAMAL: Absolutely. I mean, it's not just significant. It's really unprecedented in, you know, this is a major, major shift in U.S. public opinion, particularly with Democrats, particularly with young Democrats. And you're finally starting to see that trickle into the politics. It was very notable that none of the Democrats who are likely running for president in the next elections voted to allow or voted in favor of U.S. arms being sent to Israel. That is huge.
But it is a natural progression of the shift in public opinion over the last two and a half years, the majority of Americans, both Democrats and Republicans under the age of 45, are not happy with U.S. unconditional support to Israel in light of what has happened in Gaza, in light of what they see as undue Israeli influence over U.S. foreign policy, and they want to see that stop. They want to see American politicians focus on America.
And so you're going to see this trend continue. I think this is an irreversible trend. I think it is a natural progression of Israel's overreach, both in the Middle East and in domestic U.S. politics.
MICHAELSON: And already a major part of the 2028 Democratic presidential primary, which is interesting and clearly has kind of already begun.
Jasmine, what a pleasure to talk with you. So much interesting insight from you. Thanks so much for joining us. Really appreciate it.
EL-GAMAL: My pleasure. Thanks for having me.
MICHAELSON: Speaking of Congress, the top Senate Republican is warning the White House to stop slinging insults at Pope Leo. Majority leader John Thune says the digs could offend Catholic Republicans.
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President Trump has slammed the Pope for his opposition to the war with Iran, and Vice President J.D. Vance, who became Catholic in 2019, has also taken issue with the pontiff. (BEGIN VIDEO CLIP)
J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: I think it's very, very important for the Pope to be careful when he talks about matters of theology.
UNIDENTIFIED REPORTER: Do you agree with that sentiment?
SEN. JOHN THUNE (R-SD): When he talks about matters of theology?
UNIDENTIFIED REPORTER: Yes.
THUNE: Isn't that his job? I'd stay focused on the administration, on the economic issues, the pocketbook issues that I think most Americans care about. And, let the church be the church.
(END VIDEO CLIP)
MICHAELSON: Meanwhile, students from America's most Catholic university, Notre Dame, appear to be on the side of Pope Leo.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I found it incredibly disrespectful, especially the A.I. image of him portraying himself as Jesus. I would ask why, like, what is going on in your head that would make you like, say these things? Or like, do like, do any of this?
UNIDENTIFIED MALE: There's like a lot of charged opinions about it, which a lot of people here have. And I think I kind of echo some of those, which is definitely that he shouldn't have done it.
UNIDENTIFIED MALE: I think that's kind of taking it too far. I think he's just maybe trying to be too powerful.
(END VIDEO CLIP)
MICHAELSON: Meanwhile, Pope Leo is pushing ahead with his 10-day swing through Africa. After first stopping in Algeria, he's now on a visit to Cameroon. There was a welcome ceremony for him in the capital with troops standing guard. Pope Leo later spoke outside the presidential palace, urging authorities to avoid corrupt practices.
CNN's Vatican correspondent Christopher Lamb is traveling with the Pope.
(BEGIN VIDEOTAPE)
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Well, Pope Leo is saying that his visit to Africa is about sending a message of peace and unity that, quote, "the world needs to hear." He was speaking on board the papal plane from Algeria to Cameroon, talking to journalists about his trip to Algeria, stressing the importance of Christian-Muslim relations.
Leo, of course, facing huge criticism from President Trump and J.D. Vance for his stance on the war, but showing that he wants to continue to talk about peace. He won't be, as he said, afraid of the Trump administration.
Now Leo is in Cameroon for a very important trip focused on reconciliation. This is a country that has been in conflict between the Francophone government and the English speaking separatist groups. Leo will be flying to Bamenda, which is at the center of this conflict, on Thursday.
Leo, though, in the capital Yaounde, addressing political authorities alongside a president, Paul Biya, the oldest in the world at 93 years old, hosting what is his fourth papal visit.
Christopher Lamb, CNN, Yaounde.
(END VIDEOTAPE)
MICHAELSON: Tomorrow here on THE STORY IS I'll be speaking about the Pope's African tour with CNN's Nairobi based correspondent Larry Madowo, who will be here in Los Angeles with me. So please tune in for that.
In the meantime, still ahead right now on THE STORY IS, severe weather again threatening millions across the midwestern U.S. Some 10 million people across six states are under tornado watches this hour. Dangerous weather conditions are forecast to continue through the end of the week.
A new batch of severe storms cropped up on Wednesday. There have been more than two dozen tornado reports during a multi-day outbreak that began on Monday. Thunderstorms have brought destructive hail ranging in size from limes to softballs, with nearly 100 reports across the region. And flooding has been a serious problem in the upper Midwest. That storm threat for Thursday is lower and less widespread, but severe weather is set to return on Friday.
Still to come here, the L.A. County District Attorney's Office joins the investigation and allegations against former Democratic congressman Eric Swalwell.
I'll talk with Lisa Bloom live here on set, who is representing one of his accusers, and just met with authorities.
And dozens of cocaine hippos linked to the late drug lord Pablo Escobar are expected to be culled in Colombia. Yes, this is a real thing. We'll show you why ahead.
(COMMERCIAL BREAK)
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MICHAELSON: The L.A. County district attorney says their office is working with law enforcement on an investigation into former Democratic congressman Eric Swalwell. He resigned from a 13-year congressional career on Tuesday amid multiple sexual assault and misconduct allegations. Swalwell also ended his campaign for California governor over the weekend. He denies all the allegations.
Meanwhile, other lawmakers on Capitol Hill have been facing their own ethics investigations with their political careers and the Republicans' narrow House majority hanging in the balance.
CNN's Lauren Fox has our report.
(BEGIN VIDEOTAPE)
REP. ALEXANDRIA OCASIO-CORTEZ (D-NY): I'm glad that Eric Swalwell is leaving. I'm glad that Tony Gonzales is leaving.
LAUREN FOX, CNN CORRESPONDENT (voice-over): More showdowns over who should be expelled from Congress in the wake of two major resignations. Especially contentious in a body where every vote counts.
Next week, the House Ethics Committee expected to make a recommendation on Democratic Representative Sheila Cherfilus- McCormick, who was indicted in November and accused by federal prosecutors of taking millions in FEMA funds and rerouting some of it to her campaign. The Ethics Committee found her guilty last month of violating campaign finance laws.
She pleaded not guilty and says she doesn't plan to resign. "The allegations I'm addressing are not the same as those facing some of my colleagues. Lumping them together, particularly with cases involving sexual assault and rape, is inaccurate and irresponsible."
Also, under fire, Republican Representative Cory Mills, who is under investigation by House Ethics for campaign finance infractions and sexual misconduct.
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Mills' ex-girlfriend accused the congressman last year of threatening to release sexually explicit images and videos after her relationship ended with Mills. Mills has denied the accusations.
REP. CORY MILLS (R-FL): Here's the distinguishing difference. One, I'm not married, so I'm not committing an affair in my life. Two, I have never had any inappropriate actions or any type of illegal behavior, inappropriate behavior with a staffer or intern of any type. I have absolutely no investigations that are criminal that are open. I have no pending anything and I don't really find it to be warranted that I'm even tethered to the individuals that are on there.
FOX (voice-over): Even some Republicans have said Ethics needs to move swiftly on Mills.
REP. ANNA PAULINA LUNA (R-FL): I'm not Cory Mills' spokesperson, but I'm sure he's not going to run cover for someone when I think that they're wrong.
FOX: You also have Democrats calling for Cory Mills to step aside or be expelled. Would you be supportive of that measure? REP. MIKE JOHNSON (R-LA): What I'm supportive of is due process.
There's a due process investigation that is going on for that individual member. It's about halfway through the process.
FOX (voice-over): And the prospects of further expulsions could impact Johnson's already narrow majority, a reality that members say no one can deny, especially as the speaker stares down several must-pass bills just months before the election.
REP. JARED MOSKOWITZ (D-FL): Obviously, there's a voting reality that gets put into this, not because it should when it comes to moral issues, but that's just the nature of this place.
FOX (voice-over): Lauren Fox, Capitol Hill, CNN.
(END VIDEOTAPE)
MICHAELSON: Joining me now live is civil rights attorney Lisa Bloom. She represents a woman who says that Eric Swalwell sexually assaulted her back in 2018.
Lisa, welcome. Good to see you.
LISA BLOOM, ATTORNEY FOR ERIC SWALWELL ACCUSER: Thank you.
MICHAELSON: Thanks for coming in.
BLOOM: You as well.
MICHAELSON: You got a big press conference yesterday for people that may have missed it. Sort of what is the basic allegation that your client says in terms of what happened here?
BLOOM: Yes, my client very bravely came forward with her real name, Lonna Drewes, and her face, and she spoke directly about what she says happened. And she says that Eric Swalwell, she believes, drugged her and raped her in a hotel room in 2018. After that incident, they never saw each other again. She went to sexual assault therapy a couple of years later.
She told some people contemporaneously, right after it happened. She's got a photo with him that we showed at the press conference. So that's her story.
MICHAELSON: And then you all went to the L.A. County Sheriff, right?
BLOOM: Right. Because when there's an allegation this serious, it needs to be handled by law enforcement. I feel that very strongly. So we immediately went to the L.A. County Sheriff's Office, which has jurisdiction over West Hollywood, where the incident happened, that she says happened. And we got a detective assigned and there were a couple of other deputies, and we sat there with them.
She answered all of their questions. She didn't have anything to hide. We provided some evidence. We are gathering additional evidence and we are going back tomorrow for a follow-up interview, which they just requested today.
MICHAELSON: So they're now asking for more.
BLOOM: Yes.
MICHAELSON: So they believe that at least so far it's credible enough to come back for more information.
BLOOM: I think that's correct. Yes.
MICHAELSON: And so we don't know yet in terms of any potential criminal charges, because they got to do the sheriff's investigation first. Then it goes to the L.A. County District Attorney if it rises to the level of criminal charges, correct?
BLOOM: That's correct. Exactly.
MICHAELSON: Yes. So Swalwell has a new attorney named Sara Azari who's L.A. based.
BLOOM: Yes.
MICHAELSON: And she spoke with Chris Cuomo about all of these allegations on News Nation last night. Here's what she says.
(BEGIN VIDEO CLIP)
SARA AZARI, ATTORNEY FOR ERIC SWALWELL: The issue that we're talking about here is whether it was consensual sex, that is criminal sex. And, you know, two adults consenting, which is our position, is not against the law. And so what I say to jurors, I'm going to tell your audience, regret is not rape. So the fact that, you know, a day later, years later or whatnot, you maybe had shame around what you did or maybe you were in a relationship and shouldn't have done what you did. Doesn't make it rape.
(END VIDEO CLIP)
MICHAELSON: Your response to that.
BLOOM: Wow. OK. So the problem she has is her client has already spoken out before she came into the picture. Let's talk about what he said. I'm not perfect. I'm not a saint. This is between my wife and me. And then he said, you know, I have made mistakes in judgment without elaborating what they were.
My client never said anything about shame or remorse. Why should she be ashamed? She says she was sexually assaulted. So, you know, look, she's got to come up with something. She's got a client to defend. There's only one person in the world who's defending eric Swalwell right now, and that's his paid attorney. We're not hearing anything from his best friends, his colleagues, his own family, his wife, only his paid attorney. And this is what she's come up with.
MICHAELSON: But this idea that, you know, the sex was consensual, which is different, by the way, than what his attorney on Friday night said to me. And it's different, by the way, than what Swalwell initially said when he said that he had, you know, no inappropriate relationships. Now it seems like it has moved to it was consensual sex and that's not a crime.
[00:30:05]
BLOOM: Right. So why do we have so many different stories? Look, when someone's accused of sexual assault, there's only two possible defenses: I didn't have sex with her, or I did, but it was consensual. And we've already covered both of those in just a couple of days. You know, I think he's having trouble keeping his story straight.
MICHAELSON: So, what happens now? Because you say that other people have come forward too, right?
BLOOM: I've had three additional women reach out to me since the press conference, and that was just yesterday morning. I'm very happy to talk to anyone for free and confidentially.
In addition, witnesses have also reached out to me who remember when my client was there with Eric Swalwell at different events back in 2018, as she says. So, all of that is very important. We really appreciate that.
I really see a groundswell. My client's also gotten hundreds of messages on social media that mean the world to her, thanking her for her courage.
MICHAELSON: So, these other accusers, they -- similar stories?
BLOOM: Yes. I can't go into the details of their stories right now, but yes, there are similar stories of sexual misconduct.
MICHAELSON: How do you think -- just to wrap this up -- that this is still happening in 2026 after #MeToo, after everything that every man, woman should know about all of this? How is this still happening?
BLOOM: It's heartbreaking. Because there are sick people out there who do terrible things, who are drunk on power, who think that women's bodies are something that they can control. And it's wrong, and it's disgusting. And I'm really sorry for my client, Lana, and for all of the others.
MICHAELSON: And we should point out, again, that Eric Swalwell denies all of these allegations. We have invited Eric Swalwell to join us here on THE STORY IS. We've also invited Sara Azari to join us here on THE STORY IS.
Both of them so far have declined our invitations, but we hope that they will talk with us soon.
Lisa, always great to talk with you. Thank you so much.
BLOOM: You, as well. Thank you for having me.
MICHAELSON: We'll be back with more news. Still ahead, a big, big day when it comes to Liv Golf. And that whole tournament and industry could be going away. We'll have more just ahead.
(COMMERCIAL BREAK)
[00:36:37]
MICHAELSON: President Trump is threatening to fire U.S. Federal Reserve chairman Jerome Powell if he doesn't step aside when his term ends next month. That term is set to expire on May 15, and Powell has promised to stay on the job until a successor is confirmed, saying, quote, "That's what the law calls for."
Powell also has the option to remain on the Fed's governing board until 2028. It's not clear whether Trump can fire Powell without cause.
In an interview with FOX Business, the president was asked what would happen if Powell stays. Here's what he said.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENT: Well, then I'll have to fire him, OK? If he's not leaving on time, I've held back, firing him. I've wanted to fire him, but I hate to be controversial. You know?
(END VIDEO CLIP)
MICHAELSON: Hates to be controversial.
Well, Trump nominated former Fed governor Kevin Marsh to replace Powell, but Republican Senator Thom Tillis, a key member of the committee that approves Fed nominees, has said he will not vote to confirm him until a Justice Department investigation into Powell has finished.
That probe is looking into whether Powell lied to Congress about the Fed's $2.5 billion renovation of its Washington headquarters.
Now, despite warnings from the International Monetary Fund that the war with Iran could endanger the global economy, China's economy is chugging right along.
Beijing just reported 5 percent GDP growth for the first quarter of the year, beating expectations, keeping China on track to meet its annual growth target.
Kristie Lu Stout joins me now from Hong Kong. Kristie, China is the first major country to report GDP since the war's start in February. How much is the conflict impacting what's happening in China, which is the world's second biggest economy?
KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR/CORRESPONDENT: It's really interesting, when you drill down into the numbers, Elex. Look, China had a very strong start to the year. Its economy grew 5 percent in the first quarter from a year ago, all on the back of strong exports.
But the war in the Middle East is causing deep uncertainties for the world's second largest economy.
Now, China is also the world's largest importer of energy, but it's still been able to be shielded from the Iran energy shock. Its faring and its managing through this crisis much better, compared to its neighbors across the Asia Pacific region.
And I want to walk through the reasons why. Let's bring up the full screen graphic.
First of all, China was prepared. China has a huge estimated 1.3 billion barrels strategic reserve of crude oil. That's more than four months' worth of imports.
China has also diversified its power generation into solar and to wind, and it doesn't mind getting dirty. It still uses coal not only for energy, but also for fertilizer.
And as soon as the war broke out, China looked after itself. It curbed exports of energy like diesel, gas and jet fuel, keeping it for itself.
Look, China may be shielded, but China is still vulnerable. It is vulnerable to rising prices. It is also vulnerable to falling demand for its exports.
I want to show you a hit of analysis from the China economist at Goldman Sachs. And this is what Xinquan Chen said. He said this: quote, "China's exports remain a key growth engine in 2026. But the recent energy shock has shifted the focus toward the sustainability of external demand."
And, Elex, there are already signs of strain percolating from the big Chinese economy. In March, China reported its factory gate prices rose for the first time in more than three years.
[00:40:06]
Back to you, Elex.
MICHAELSON: Wow. And Kristie, we know the Asian markets are open now. How are investors reacting to this news in real time?
STOUT: You know, despite analysts saying, look, there's a specter of inflation, rising energy prices, rising prices of everything, and even the warning that we heard from the IMF, optimism across the board.
Optimism among investors here in Asia, tracking those gains that we saw earlier in the United States on the back of strong earnings reports, as well as optimism and hope that the U.S. and Iran will be able to somehow hash out an extension to the ceasefire.
There, you can see it. Gains across the board. Quite in contrast to all the red arrows we saw last month.
Back to you, Elex.
MICHAELSON: Always good to see green. Kristie Lu Stout in Hong Kong. Thank you so much.
Meanwhile, Iran is raising the economic stakes of its conflict with the U.S. by threatening to shut down shipping in the Red Sea, as well as the Persian Gulf and the Sea of Oman. That is according to the state-run news agency there.
Tehran says it will move on the waterways if U.S. continues its blockade of Iranian ports. That went into effect on Tuesday.
Richard Quest at the big board, explaining how the blockade is actually being enforced -- Richard.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: The U.S. military says it has completely halted Iranian shipping. What we need to understand is exactly what that actually means.
So, here we have a map of the current situation. And the United States says that Iran's ports -- we're talking about all these ports, particularly Kharg Island, all the big ones, all of them, they're over here. He says they are blockaded at the moment.
But where is the U.S. actually doing the blockading from? Not from the straits itself, but the ships are probably somewhere outside in the Gulf and the Arabian Gulf along. They're keeping as far away as possible.
The U.S. says it is not blockading the Straits of Hormuz itself, and traffic not related to Iran may cross. But of course, that raises the question of how much traffic is actually moving across.
In terms of traffic that has actually managed to get across, if we take a look, you can see. Some vessels, for example, the Christiana, have passed through the straits. You can see it here.
Others, the Rich Starry (ph). I'm just going to show you here. You can see it coming around here. Some of them came down, came all the way around -- the Rich Starry (ph) -- and then turned all the way back again.
Iranian media says four ships have traveled to and from Iran today. It is a tricky issue of getting around, but even if a boat gets through, the U.S. Can of course still intercept and interdict a vessel anywhere in international waters.
If you look at the blockade before the U.S. blockade, Iran routed vessels North of the channel. Really interesting to see how it did. You came North of the channel and out to avoid mines.
Now, Donald Trump says U.S. allies will start using minesweepers. CENTCOM has released audio of militaries warning vessels in the Gulf of Oman taking, depending on which route they're going, the Northern or the Southern, because that has been determined as the hazardous area. UNIDENTIFIED MALE: The U.S. Has announced a formal blockade of Iranian
ports in coastal areas. This is a legal action. All vessels are advised to immediately return port if leaving and discontinue transit to Iran if that is your next port of call. D
Do not attempt to breach the blockade. Vessels will be boarded for interdiction and seizure, transiting to or from Iranian ports. Turn around and prepare to be boarded. If you do not comply with this blockade, we will use force. The whole of the United States Navy is ready to force compliance.
Quest: Whichever way this plays out in the days ahead, the economic damage is already baked in to a large extent, and the longer it continues, the worse it gets.
Richard Quest, CNN, London.
(END VIDEOTAPE)
MICHAELSON: Thank you, Richard.
New reports about funding are raising questions about the future of the Saudi-backed Liv Golf League. Still ahead, we'll discuss those details with golf writer extraordinary Alan Shipnuck, who literally wrote a book called "Liv and Let Die."
(COMMERCIAL BREAK)
[00:48:55]
MICHAELSON: THE STORY IS sports. A source tells CNN the CEO of Liv Golf is denying any changes to its operation after multiple reports suggested the future of the breakaway league is in doubt.
He sent a letter to employees saying that Liv Golf is moving forward as planned.
Reports on Wednesday indicated that Saudi Arabia is considering pulling funding from the league. Remember, Liv Golf lured big-name stars away from the rival PGA Tour with multi-multimillion-dollar payments.
But the league has sparked allegations that Saudi Arabia was actually using Liv Golf to, quote, unquote, "sportswash," or burnish its reputation to distract from potential human rights abuses.
Joining me now is Alan Shipnuck. He is a writer at large for "Scratch Golf." He is the author of the book on all of this called "Liv and Let Die." And he's the author of a new book on the two-time now champion of the Masters, Rory McIlroy.
[00:50:00]
Alan, welcome back to THE STORY IS. Good to see you.
So, there -- ALAN SHIPNUCK, WRITER-AT-LARGE, "SCRATCH GOLF": Delighted to be here.
MICHAELSON: -- was some -- yes. There was some reporting that, basically, Liv is going to stay for the rest of the season, but then what happens next? What happens next year? Are we sure that Liv Golf is even going to survive into next year?
SHIPNUCK: Nobody is sure of that, including the players on the tour, including the CEO who put out a very carefully worded letter to the employees, as you mentioned.
It's -- you know, just last week, Scott O'Neil, the CEO at the Masters, was telling people under the tree there at the clubhouse that Liv was funded through 2032. Now they're funded through 2026. The state of play is ever evolving and uncertain.
And there are larger things happening. You know, the public investment fund of Saudi Arabia just put out this new five-year plan. The -- they're pulling back on a lot of spending. A lot of vanity projects are going away.
And in that context, Liv is vulnerable, because it's -- it's a money- losing business. Now, it is an exercise in soft power. As you mentioned, there's other strategic aims through Liv Golf sportswashing and getting into the halls of power in the Western world. But as a business, it is losing billions of dollars.
And if the Saudis are looking to trim some fat, it's a pretty easy decision.
So, I think Liv's not dead, but it's on life support. And the next 6 to 8 months are going to be very intriguing to see if there's a way forward, possibly a new sponsorship, maybe -- maybe retrenching how the whole league operates. But -- but right now the future is extremely uncertain.
MICHAELSON: So, there has not been a great relationship between Liv and the PGA Tour. And some of the players on the tour have been very against the folks that went to Liv.
If Liv goes away, does the PGA Tour welcome back those golfers with open arms?
SHIPNUCK: No, quite the contrary. It's time for vengeance and payback.
Most -- most of the Liv Golfers are going to be out in the wilderness. They can play on the Asian tour. They can play on the European tour. But there is no love lost with the PGA Tour in the United States.
And the players on the PGA Tour do not want their jobs taken by the Liv defectors. So, there's going to be roadblocks. There's going to be suspensions.
They may find an avenue back for the two players who really matter: Bryson DeChambeau and Jon Rahm. They're big stars. They would add value to the PGA Tour. They could concoct some sort of special criteria based on them being
multiple major championship winners and finesse them back onto the tour if they really want to. But even that will run into resistance.
So, the guys who went to live were rolling the dice. They knew that. And you know, as Don Draper said, that's what the money is for. They were -- it was it was a risk. It was a calculated gamble. And it looks like it's going to blow up on them.
So, there's not a lot of sympathy for -- for the Liv guys. They made their choice and now they're going to have to live with the consequences.
MICHAELSON: Well, there's nobody on the PGA Tour who pushed back against Liv more than Rory McIlroy, who just this past weekend at the Masters won his second green jacket in a row. You were there for that. You literally have a brand-new book about Rory McIlroy that's -- that's out.
Talk to us about what this moment means for Rory McIlroy.
SHIPNUCK: Well, for his legacy, this Masters victory is monumental. It just sends him up the list of all-time greats.
And, you know, last year when he won the Masters, it was catharsis. It was relief. This was joy. It was a very different feeling.
He's completely unburdened, and he's now calling it Augusta National his home course. This is a place that tortured him for the better part of 15 years.
So, it's very tantalizing to think how many more green jackets Rory might nab --
MICHAELSON: Yes, yes.
SHIPNUCK: -- in the context of this battle with Liv. It just, you know, it cements Rory's status as the biggest star in the game.
It's just a -- it's just another example of when you play on the tour, the competition is tougher. You're more optimized for the challenge of the major championships like the Masters.
MICHAELSON: Yes.
SHIPNUCK: And so, it's a big moment for him personally.
MICHAELSON: Yes, yes.
SHIPNUCK: It also -- echoes are felt in this larger battle. -
MICHAELSON: Alan Shipnuck, thanks so much. We'll be right back with more after this.
(COMMERCIAL BREAK) [00:59:18]
MICHAELSON: Finally, this hour, CNN's Stefano Pozzebon reports on the hippos notorious drug lord Pablo Escobar brought into Colombia in the 1980s.
(BEGIN VIDEOTAPE)
STEFANO POZZEBON, CNN CORRESPONDENT (voice-over): They may look chubby and almost cute, but Pablo Escobar's famous hippos have become a plague in Colombia.
More than 30 years after the narco leader was killed in a shootout with police, some of his animals and their descendants are now being culled.
In 2021, CNN traveled to film with the hippos, who were roaming wild in lockdown.
POZZEBON: We're getting close to the hippos with an expert, finally, so this should give us special protection, because we are with Gina.
GINA: No, if I say run, you run. OK.
POZZEBON: If you say run, run.
GINA: With wild animals, you cannot forget that they're wild animals. They're not domestic.
