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What We Know with Max Foster

U.S. & China Agree To Dramatically Cut Tariffs For 90 Days; Freed American Hostage Now Back On Israel Soil; Trump Begins First Major Foreign Trip Of Second Term; Zelenskyy: Ukraine "Ready" For Peace Talks With Putin; U.S.-Brokered Ceasefire Appears To Be Holding. Aired 3-4p ET

Aired May 12, 2025 - 15:00   ET

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

[15:00:25]

MAX FOSTER, CNN HOST: Stocks are surging after the United States and China rollback tariffs.

This is WHAT WE KNOW.

With an hour of trading left on Wall Street, these are the numbers. You can see what they're doing up more than 1,000 points just on the Dow. The other

markets also surging tech stocks. As you can see up 4 percent. Apple is one of them. They've got a big deal with China.

Obviously, the agreement between the U.S. and China slashes tariffs for at least 90 days and signals a possible thawing of tensions between the

world's two biggest economies.

President Trump says he may speak directly with the Chinese president, Xi Jinping, soon.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The talks in Geneva were very friendly. The relationship is very good. We're not looking to hurt China.

China is being hurt very badly. They were closing up factories. They were having a lot of unrest, and they were very happy to be able to do something

with us. And the relationship is very, very good. I'll speak to President Xi maybe at the end of the week.

(END VIDEO CLIP)

FOSTER: Paula Newton is in New York.

I mean, it's remarkable they haven't spoken to yet, really, but it speaks to the tensions, doesn't it, between these two countries. But you know what

happens after the 90 days? Thats the question a lot in the markets are asking, right?

PAULA NEWTON, CNN CORRESPONDENT: Yeah. And you know what? The markets here have their relief rally. Right. The markets got what they wanted. I guess

the issue is here. Did businesses in the United States, consumers in the United States, and consumers and businesses beyond, they didn't really get

what they wanted here, Max. I mean, look, trade deals need to be both durable and detailed. Nothing that has happened here so far matches that

description, and that will continue to be a problem in the months to come.

And again, I want to point out that this is a relief rally based on something that the that the Trump administration created themselves, right?

They hiked the tariffs up to an astronomical amount to understanding that it would amount to a trade embargo and then pulled back from the brink. You

could have threatened those tariffs. I think most countries, including China, would have believed that the president would impose them and

negotiated instead.

But it also brings into question, as what is the endgame for the Trump administration? And there's a lot of collateral damage as people try and

figure that out, as perhaps, maybe even the Trump administration tries to figure that out. Remember the goal here, Max, was, in fact, to reshore

right to try and make especially strategic goods in the United States and drive manufacturers from all over the world to buy American products, and

also to continue to make American goods, more American goods in the United States.

There was supposed to be a decoupling from China. Well, listen to the treasury secretary after this deal was announced speaking to CNBC.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, TREASURY SECRETARY: What we do want is a decoupling. For four strategic necessities, which we were unable to obtain during COVID.

And we realized that efficient supply chains were not resilient supply chains.

(END VIDEO CLIP)

NEWTON: You know, that was pretty self-evident to anyone in the United States, whether you went from a CEO to a businessperson to mothers who

couldn't even get things like baby formula in the United States, there were a lot of issues with supply chains that the Trump administration could

still continue to look at. But in the meantime, as I say, Max, a lot of collateral damage. What this deal does is yes, gives many businesses now

some breathing room.

But the question is when the treasury secretary says he wants the strategic decoupling, it really comes down to a lot of sectors that you'll be hearing

a lot about, whether it's cars or steel. And again, it has many other countries now lined up behind China. The issue is here. It is every country

for themselves, whether it's Japan, Canada, Mexico, the EU. It is going to be a very turbulent few months as this administration tries to make deals

not just with China, but with many other countries as well.

FOSTER: Paula Newton in New York, thank you for that.

Now, the last known living American hostage in Gaza is now back on Israeli soil. Edan Alexander was released by Hamas and handed over to the Red

Cross, just as U.S. President Donald Trump left for a Middle East tour. Crowds gathered in hostage square in Tel Aviv to celebrate his release.

Alexander is a dual Israeli-American who was serving in Israel's military when he was captured.

Prime Minister Benjamin Netanyahu credits President Trump for helping secure his release.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): This is a very emotional moment. Edan Alexander has returned home. We embrace him and

we embrace his family. This was achieved thanks to our military pressure and the diplomatic pressure applied by President Trump. This is a winning

combination.

[15:05:02]

I spoke with President Trump today. He told me, I'm committed to Israel. I'm committed to continuing to work with you in close cooperation in order

to achieve all of our war objectives, releasing all the hostages and defeating Hamas. This goes together, their combined with each other.

(END VIDEO CLIP)

FOSTER: We're joined now by Alon Pinkas, a former a former Israeli consul general in New York. He's in Tel Aviv right now.

I mean, it was wonderful to see, wasn't it? And he looked really well, didn't he, as well. So that was a pretty positive. But, you know, this is

all linked presumably with the Trump visit. Or do you think this was going to happen anyway?

ALON PINKAS, FORMER ISRAELI CONSUL GENERAL IN NEW YORK: Well, that's difficult to say. I mean, look, I am sure that ahead of his visit, Max, to

Saudi Arabia, the UAE, the United Arab Emirates and Qatar, Trump has been subject to not pressure but to pleas from those three countries to get

reengaged in this.

So, there's a good chance, a high likelihood that this had something to do with it. But this is also something that the American administration has

been working out -- working on, I'm sorry for some time.

What is weird here -- well, maybe weird is to -- in a word, what is peculiar here is that the Americans, at least until now, have not reengaged

in the in the entire process, but rather secured the release of Edan Alexander who we are more than happy, excited, and deliriously, joyful to -

- to get back but he's the one who's a joint American Israeli citizen.

And so, the question is, will the administration follow up on a bigger, broader package here that includes the end of the war, given, Max, that in

the last week it emerged or was divulged from the White House, Mr. Trump's displeasure with Netanyahu's war plans in Gaza.

FOSTER: Yeah, take us through that, because there has been some commentary, hasn't there, about the relationship between Netanyahu and Trump faltering?

Can I call it that? What are you hearing?

PINKAS: Yeah. I mean, look, there was never love lost on Trump's side. He holds a grudge going back to 2019 and 2020. Three weeks after the

catastrophe, the debacle of October 7th, 2023, Trump called Netanyahu a loser, no less. And then he was elected. And then he was heralded by

Netanyahu as, you know, as Cyrus the great, the savior of Israel. It's -- and since then, look what happened in brief form. Let's connect the dots.

Blindsided him in February by saying, I will take over Gaza. I'll turn it into a riviera. Okay, that never happened. But nonetheless, he was -- he

surprised Netanyahu with that.

Then in April again at the White House, at the Oval Office, he in front of television cameras, he said, well, just so I just told the prime minister -

- this is Trump talking to television about Netanyahu. I just told the prime minister that we are in direct negotiations with Iran, that two weeks

later, he fires or dismisses his, national security advisor, Mike Waltz. And a day later, it turns out, or at least the White House leaks, that the

reason was that Waltz allegedly was running some kind of a surreptitious back-channel with Netanyahu trying to manipulate Trump into a war with

Iran.

Fast forward another week, Trump announces the suspension of military activity against the Houthis in Yemen, but does not mention Israel. And

fast forward a few days, he's going to the Middle East, but glaringly skipping Israel. And so, yeah, faltering is one way of looking at it. I

don't think Netanyahu is a happy guy right now.

FOSTER: Okay. Alon Pinkas, thanks for your analysis as ever. And good news on this release today at least.

President Trump won't be stopping in Israel during his Middle East tour. Instead, business deals with Saudi Arabia, Qatar and the UAE are top

priorities.

Mr. Trump departed Washington a few hours ago, heading first to Riyadh. The energy rich Arab nations are expected to roll out the red carpet for

President Trump's first major international trip of the second term.

Kristen Holmes is at the White House for us.

I mean, it is going to be fascinating to see the reception because they can put on a pretty good show there, and were expecting it, aren't we?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Oh, yeah, all the pomp and circumstance. And Donald Trump really likes going there as well,

at least in part. He knows it's going to be a spectacle, and anyone who likes spectacle, it's the president.

Now, one of the things, one of the big reasons that he wants to go on this trip is to really shore up relations with this trio of countries, with

Saudi Arabia, with Qatar, with the United Arab Emirates.

[15:10:02]

But the big thing he wants to be able to do when he leaves there is announce major U.S. investments from these various countries. And we are

told that that's already in the works. It's already in the pipeline. But he wants to be able to come out of this to talk about and tout those large

numbers.

Now, of course, we know there are other issues on the back burner, particularly when it comes to expanding the Abraham Accords. One of the

things that Donald Trump has spoken a lot about, we know that Jared Kushner, his son in law, has been involved in extensive conversations to

kind of try and grease the wheels ahead of time, ahead of Donald Trump landing there in the Middle East.

But one other part of this that, as you noted, is so interesting is the fact that he's not meeting with Benjamin Netanyahu. The fact that this

hostage was released today as he was leaving for this trip, seemingly going around Israel and going around Netanyahu, and now he's going to that region

and not meeting with the prime minister of Israel.

So again, it shows you a little bit about where the head is of Trump and the Trump administration now as they head abroad for this first major

foreign trip. And just a reminder, last time, his last term, he also made his first major foreign trip, a trip overseas to the Middle East. Again,

obviously trying to replicate that as we head into this trip.

FOSTER: Feels like this is a dealmaking trip, doesn't it, rather than getting involved in a lot of the local politics?

HOLMES: Yes, it definitely seems as though this is all about wheeling and dealing and trying to come out of here to say, look what I got from the

Middle East. Look at the kind of funding I got for American investments. They're calling them economic agreements.

Now, this isn't, again, not the trade deals that were seeing. This is more an investment in America, in American goods. Thats what they're hoping to

announce when they leave here.

FOSTER: Okay, Kristen at the White House. Thank you.

Ukrainian President Volodymyr Zelenskyy is offering to meet with Russian President Vladimir Putin, potentially as soon as Thursday. It would be the

first time the two leaders have spoken since Russia invaded Ukraine in 2022. Earlier, U.S. President Donald Trump said he also is considering

joining the peace talks, which is set to happen in Turkey.

CNN chief international security correspondent Nick Paton Walsh is in Kyiv.

I mean, it would be an extraordinary meeting, but how likely do you realistically think it is?

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: It is, frankly hard to tell if it's actually going to come off. But Trump is

sounding extraordinarily confident this may potentially occur. In fact, he took Zelenskyy's offer of attending on Thursday in Istanbul in person, an

extra step further, saying that he expected the two leaders to be there. Now, what we don't hear from at this point is any indication from the

kremlin that indeed, Vladimir Putin might indeed attend this meeting.

Let's just step back a huge 48 hours, Max, to how we got to this particular place. And that was a Saturday meeting with the four European powers,

France, U.K., Germany, Poland, with Ukraine demanding a 30-day ceasefire that should have begun unconditionally at midnight just behind me now.

Putin said no to that, essentially offered a meeting on Thursday. Zelenskyy upped Trump's suggestion that he should attend by saying he'd be there in

person. And now we have Trump suggesting, indeed, that he might actually, depending on his timetable on Thursday, attend himself. Zelenskyy has

welcomed that suggestion.

So, it has been an extraordinary bustle of diplomatic activity. My personal hunch is that Trump may potentially think that his suggestion Putin should

be there might force the Kremlin into feeling they can't refuse that invitation. Trump has been reticent to criticize the Kremlin publicly, or

even indeed implement the suggestions from his European allies that there should be sanctions against Russia for ignoring the ceasefire deadline.

That has pretty much got about two hours left in it before it passes here in Ukraine.

So, it's a huge, constant moving mess here, frankly. But the ultimate, I think, outcome of this is going to be that Trump's decision to potentially

attend will put added pressure on Russia to be there. But we have to be cautious about the idea of what Zelenskyy, Putin, Trump meeting might

indeed involve. Zelenskyy and Putin have made no bid to remotely hide their open dislike for each other. Zelenskyy and Trump's relationship. We all

know how messy that has been.

Trump and Putin's relationship -- well, that is the stuff of history books, frankly, that have yet to be written.

So, the idea of those three men suddenly fixing the largest war in Europe since the 40s is somewhat farfetched, but I think it will be a moment of

high stakes, possibly high theater. And it will, of course, I imagine, yield an outcome that will require many months to elucidate -- Max.

FOSTER: Yeah, absolutely. Nick, thank you so much. We'll keep across that definitely.

Now, a temporary tariff truce. Still to come, we look at the 90-day deal between the U.S. and China. It's not a deal yet, but what it could mean in

the long term.

(COMMERCIAL BREAK)

[15:18:03]

FOSTER: The tariff war between the U.S. and China is on hold for the next 90 days. The temporary deal emerged after a weekend of negotiations in

Switzerland. Both sides say they recognize the importance of what they call a sustainable long term trade deal, one which President Trump's economic

adviser says is likely.

(BEGIN VIDEO CLIP)

KEVIN HASSETT, WHITE HOUSE NATIONAL ECONOMIC COUNCIL DIRECTOR: This is obviously two days work, and there's 90 days more work to do to make sure

that we -- we land the plane. But, you know, the plane is right there over the runway. I don't think that there's much hope of people who think that

this is going to go back. This is absolutely a sound deal.

(END VIDEO CLIP)

FOSTER: What we don't know. And it's a question people are asking is the global trade war over.

Joining me now, someone who doesn't know because none of us do, but is best placed to make some predictions, Dr. Mohamed El-Erian. He's the chief

economic adviser at Allianz, and he was the chair of former U.S. President Barack Obama's Global Development Council.

Thank you so much for joining us.

I mean, we're dealing with a narrative here, I guess, and a president's whim to some extent as well. But in terms of the economics, we're seeing

the markets go up. So how would you explain big investors, big economists interpreting what happened today?

MOHAMED EL-ERIAN, FORMER CHAIR OF OBAMA'S GLOBAL DEVELOPMENT COUNCIL: And thanks for having me, Max. The markets are up because what happened over

the weekend was better than expected. And even beyond what President Trump had indicated, in particular, the tariffs on China didn't just come down to

80 percent. They went all the way down to 30 percent.

As to the implications, there's two things we know and a ton of other things we don't know. The two things we know that the next 90 days will

have higher economic activity than they would have had otherwise. That's better for growth.

The other thing we know is that the Federal Reserve, whatever you expected them to do, you should now realize they're less likely to cut interest

rates soon, and they're going to cut by less than what you thought.

[15:20:11]

Beyond that, Max, there's massive uncertainties. What happens after 90 days? Will people, believe it or not, believe it? Will companies invest?

Will the uncertainty that's paralyzing also household confidence lift? There's so many questions that will remain unanswered for now.

FOSTER: From what you saw about the deal today what sort of economic impact would that have if it carried on?

EL-ERIAN: So compared to where we were before the deal, which was a total embargo de facto on both Chinese exports to the U.S. and U.S. exports to

China, this allows exports to happen, but at a higher price. So you've gone from a situation where it made no sense to import from China. It made no

sense to import from the U.S. if you're in China to one way, it does make sense, but you have to pass on the higher tariffs. You have to pass them

on.

So, it is good for economic activity. But ironically, it is bad for inflation.

FOSTER: Yeah. I also want to ask you about another element of all of this. You know, if you look at what Donald Trump's trying to do and rebalance

trade, he's only looking at goods, isn't he? He's not looking at services.

And a lot of the countries he says he's in a good position with actually have a much better they have surpluses with the -- with the United States.

He's not actually dealing with trade imbalances, is he? Because he's completely leaving services out of it and accompanying a country like China

really benefits from that.

EL-ERIAN: Yeah. And that points to the multiple objectives of the tariff policy. So, one objective, which is why it is focused on goods, is to

reshore activity back to the U.S. the notion of the manufacturing sector that has been gutted by international competition, some rightly would say

unfair international competition should come back to the U.S. So if you look at that element, then the focus is on goods.

If you look at the other elements, we want a fairer trading system. We want to raise revenues from tariffs. Then the focus should be both on goods and

services. But I think the notion of reshoring manufacturing activity is one that's been given a lot of importance right now.

FOSTER: So what's your feeling? Is this the beginning of the end of the global trade war?

EL-ERIAN: No, because if the issue was just economic, then you could make an argument that the plane will be -- will land. You had Kevin on earlier -

- will land. But it's not just economic. Theres domestic politics and there's national security aspects.

So it is better than where we were before. But this is not the destination. This is a step in what will remain a bumpy journey to an uncertain

destination.

FOSTER: Yeah. Like much of this period were in, isn't it?

Mohamed, as ever, thank you so much for joining us today and explaining it in such clear terms.

Still to come, President Trump says he would be stupid to turn down a gift worth hundreds of millions of dollars. Why? The new gift is raising

national security concerns, just ahead.

(COMMERCIAL BREAK)

[15:26:52]

FOSTER: Returning to our top story, changing tides for Donald Trump's trade war. The U.S. and China agree to drastically roll back tariffs on each

other's goods for 90 days, and the markets are celebrating.

Have a look at that. They're all up by more than 2 percent. The Nasdaq up more than 4 percent. The U.S. president says he might speak with Chinese

President Xi Jinping later this week. Mr. Trump says he thinks a longer term deal is likely with China. But if that deal isn't reached before 90

days, then the tariffs would go back up.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: No, but they would go up substantially higher, you know, at 145, you're really decoupling because

nobody's going to buy. But they can go. They got very high because of additional tariffs. I applied during the course because of fentanyl and

other things. But no, but they'd go substantially higher.

(ENBD VIDEO CLIP)

FOSTER: Let's go to Richard Quest who's on a boat because this is what he does. But we can still speak to him.

But, Richard, what was your reaction to the deal when you went through the detail?

RICHARD QUEST, CNN BUSINESS EDITOR AT LARGE: We don't know any details. All we know is that they're going to talk more, and they're going to try and

resolve some very long standing issues. But whether or not you can do it in time to make any significant difference.

Look, the fact that you've gone down from 145 to 30 percent is absolutely tremendous. It is a great boon to the economy. It could help stave off the

worst forms of recession, but it's still 30 percent. And that's still an enormous headwind for the U.S. economy to be going into, and for China to

be suffering.

These tariff levels are so enormous. What I think was interesting is what Scott Bessent said when he said, look, we both decided, i.e., China and the

U.S., that decoupling was not in our interests. Well, did we really need to go through all of this to come to that conclusion?

If you take the totality, yes, its excellent news, but we're only moving back to where we were before, we're certainly not making any progress from

the status quo ante.

FOSTER: I mean, the only proper deal we've seen so far was from the U.K. Some sort of precedent, presumably for how he's going to go into the other

negotiations. What did you make of that one?

QUEST: Economic prosperity deal is the way they call them. And this is a classic of its kind, because, yes, each bit got its -- each side got

something. Whether it was bit more beef, bit more cars access for this, access for that.

But the real thrust of that deal, of that agreement, there's nothing there. It's just we agree to talk and we agree to deal and we agree to do it in

both in good faith. But there's no detail on it. And if the other 26 or 27 deals are the same, all you're doing is tinkering around the edges.

And I think that that's what's going to happen with this deal with China. You're going to see a lot of noise. Yes, tariffs have come down, but you

cannot fool the markets longer term. The markets are only happy today because the worst has been staved off. Longer term, they're going to want

to see real detail, meat on the bones if you will.

[15:30:06]

FOSTER: Yeah, absolutely. Thank you, Richard.

Donald Trump heading to Saudi Arabia, as we said, to kick off the first major foreign trip of his second term, he's planning to also make stops in

Qatar and the UAE. The U.S. president pushing for a number of deals in the region.

Becky Anderson has more.

(BEGIN VIDEOTAPE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: This time, they've gotten richer, we've all gotten older. So, I said I'll go if you pay a

trillion dollars, and they've agreed to do that, so I'm going to be going there, and I have a great relationship with them.

BECKY ANDERSON, CNN CORRESPONDENT (voice-over): It's no secret why the U.S. President has chosen a three-stop Gulf tour for his first official trip of

his second term.

First stop Riyadh, just like in 2017 but while the cast of characters hasn't changed much, the region has and so have its priorities. The Kingdom

of Saudi Arabia, socially and economically transforming with its Vision 2030, Giga projects on the horizon.

TRUMP: Thank you very much. Thank you for being here.

MOHAMMED BIN SALMAN, PRIME MINISTER OF SAUDI ARABIA: Thank you, Mr. President.

ANDERSON: And Trump's main interlocutor, Mohammed bin Salman, growing more comfortable in his skin as a leader. Though his country is feeling the

pinch of lower oil prices, even as it keeps pumping, keenly aware that it's a Trump priority.

And while the Abraham Accords signed in Trump's first term moved the region towards peace with Israel, the war in Gaza became a seismic turning point.

Saudi Arabia accusing Israel of committing genocide and taking a hard line on normalizing relations.

FAISAL BIN FARHAN AL SAUD, FOREIGN MINSTER OF SAUDI ARABIA: Normalization with the Kingdom of Saudi Arabia is not just a risk, it is off the table

until we have a resolution to Palestinian statehood.

ANDERSON: Doha, Trump's second stop has emerged as a central mediator between Israel and Hamas and across the global stage. Washington seemingly

benefiting from delegating responsibility. It's also fertile ground for business. Qatar finalizing a deal to buy 100 Boeing wide body planes from

Washington during the president's visit, a source tells CNN.

In the UAE, artificial intelligence will be the name of the game. Abu Dhabi is fast becoming a global hub for AI and advanced technology, building its

own large language model and signing multibillion-dollar partnerships with the likes of Microsoft and OpenAI, now promising to invest $1.4 trillion in

the United States over the next 10 years and hoping to get access to more Nvidia chips from the U.S. to power its own AI ambitions.

You could argue this is more than just a presidential trip, the Trump family also staking its claim here in Riyadh, a residential and golf

property is in the works. And Eric Trump, the president's son, was also in region ahead of his father's trip here in Dubai. He was touting the

family's crypto ventures and announced a billion-dollar branded Trump residential tower.

In Doha, a Golf resort also in the works, and that is garnering public attention as to whether there is a conflict of interest.

The Art of the Deal on full display in the Gulf, which has cemented itself as a key center of gravity for the Trump White House.

(END VIDEOTAPE)

FOSTER: Becky Anderson reporting for us there.

President Trump's Middle East tour comes as he's about to be gifted a 747 jet from Qatar. The luxury gift would be retrofitted and used as Air Force

One. It's worth hundreds of millions of dollars and raises a lot of questions about security and ethics. The White House, however, says it will

follow all legal guidelines.

Earlier on Monday, the president defended the gift, saying he can't turn down a free jet.

(BEGIN VIDEO CLIP)

TRUMP: I could be a stupid person and say, oh no, we don't want a free plane. We give free things out. We'll take one too, and it helps us out

because again, we're talking about we have 40-year-old aircraft. The money we spend, the maintenance we spend on those planes to keep them tippy top

is astronomical. You wouldn't even believe it.

So I think it's a great gesture from Qatar. I appreciate it very much.

(END VIDEO CLIP)

FOSTER: So what we want to know, what are the security concerns with a foreign nation donating a jet to a U.S. president?

Joining me now is senior national security analyst Juliette Kayyem.

Thank you so much for joining us.

I mean, one of the obvious ones, I hate to say it, but there have been security experts talking about this today is that the plane will have to be

torn apart as soon as they get it, because they'll be looking for bugs.

JULIETTE KAYYEM, CNN SENIOR NATIONAL SECURITY ANALYST: Of course. I mean, it's the most obvious -- whatever you think of Qatar would do this or not,

the risk of this plane being a bit of a trojan horse, so to speak, because it was not built designed to be the president's airplane.

[15:35:11]

So, it would have to be retrofitted to ensure that it has the safety protocols and the -- and the surveillance protections means that you're

going to have to essentially dismantle it to make sure there's nothing in the wire or the piping, so to speak, in the airplane. That was my first

thought when I heard the story was -- was there geniuses and were idiots to be -- to be honest.

And there's a reason why it's free. I mean, it's -- and so -- and even and this is like, this would be true of any country. It's not this country in

particular. There is a reason why things like a president's transportation is governed by to protect him, is governed by the very country that he is,

is the head of is because there's things that we simply do not delegate.

FOSTER: So it arrives. And, you know, I think they're talking about it being fitted out by the Qataris, which seems like a very generous thing to

do. But just describe to me how much of it will have to be pulled apart. I mean, the whole thing?

KAYYEM: Yeah. Yes. I mean, there's -- there's two pieces to this. So, the first is of just what would be the interior surveillance and safety and

security concerns and that you're just going to have to do full on sweep nuts to bolts, there's no question about it.

And I -- and the Secret Service has basically said that, that, that even though it's the Air Force that runs, the airplane and then has the

designated pilots under our continuity plans, you have two planes that are designated as Air Force One, because if you had one, then the president

couldn't move around otherwise.

So we're not sure where this plane fits in. And you would then have to secure it. But this comes to the second piece. Theres some things that this

plane does not have that you would want Air Force One to have. And that in particular. And what I've been talking about today is, is the, the air to

air refueling.

What people have to remember is that Air Force One is designated as such. It's just an airplane. But as such, because it is what we would call the

continuity of government, continuity of operations plan, if there was a threat in the homeland, 9/11 or even something worse, you want the

president to be safe in air, in flight, without having to land in a situation where it may not be safe for him so that he can make decisions

for the nation.

It's not for transportation. It's not for convenience. It's our continuity of operations plan. Without that capacity, which under the specs I've

looked at, the plane does not have, it's just an airplane and it's going to have to land and get refueled. And there's reasons why you need to protect

not about Donald Trump, but about his role in our constitutional order that have been built out since essentially the nuclear age. And it's -- I'm not

quite sure you know, why that's not necessary now. I'll just put it bluntly.

FOSTER: How long would it take to do all the work that you would expect to be done on it, to make it safe for the American president to fly?

KAYYEM: So, I mean, I think it might take as long as the president is complaining about getting his new airplane, which may be a couple years

out, but it would -- it would definitely take likely in terms of the retrofitting the nuts to bolts, it would take anywhere from six months plus

and some people that that have been who know the aviation wiring would say it could take up to 1 to 2 years and you're essentially going to dismantle

this thing and then reassemble it. And it doesn't even have the features that you want for, again, not Donald Trump, but the president of the United

States.

Air Force One is our continuity of operations plan should anything happen in the event of a catastrophe, that that is your worst nightmare. But

that's what governments do, is that they envision sort of your worst-case scenario planning. So there's no retrofitting that will get this plane, at

least the specs we know right now up to speed for the kind of use that we would need.

And also, I have to add, you were going to constantly have to redo this, right? I mean, in other words, it's not like you do it once and you feel

good, right? You're going to constantly have to assess the airplane in terms of its suitability for the president of the United States.

Yes. It's free. But a lot of things that are free are also not smart, and they're embarrassing for us to do, and they're not a good reflection of our

own capacity. And that's why we don't do things necessarily, because they're free.

FOSTER: Okay, Juliette, thank you so much, indeed. Really appreciate you joining the show.

KAYYEM: Yeah. Safety people have a lot of thoughts.

FOSTER: You seem a bit bemused by it all.

Okay, we're moving on. Towns along the India-Pakistan border are buzzing with activity again. This comes days -- actually, we're going to those live

pictures because it looked a bit odd. That is Edan Alexander the U.S. Israeli hostages -- hostage. He's just been freed from Gaza.

He's arriving at a hospital on an Israeli military helicopter. You can see that on the left. He's arriving there because obviously, one of the

priorities, as soon as he gets back into Israel is to make sure he's fit and healthy, and they want to check, various medical checks before he can

really go back out into the public to make sure he's well.

He did actually look very well in the images that we saw. But I think Israel really celebrating today, the last U.S. Israeli hostage are finally

released, and just ahead of President Trump's visit to the region as well. Although we have been told he won't be going to Israel, he's going to other

countries there instead, such as Saudi Arabia.

So there's the helicopter and it looks like he's in a safe place now, and you can't imagine the relief, can you? After more than a year in captivity.

Now, towns, as I was saying, along the Iran-Pakistan border, are buzzing with activity again. This comes days after India and Pakistan engaged in

the most intense fighting in decades, sparked by a terror attack in Kashmir. A ceasefire between the two historic foes came into effect on

Saturday afternoon after mediation from the U.S.

CNN's Nic Robertson sat down with Pakistan's foreign minister, who told him more about how the deal was struck.

(BEGIN VIDEOTAPE)

MUHAMMAD ISHAQ DAR, PAKISTAN'S FOREIGN MINISTER: After this, after having seen our escalation -- rather counter escalation, and in defense, I think

then certain capitals in particularly us realized it could be a really filthy next moves.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMTIC EDITOR: And what did they say to you then?

DAR: No. They all -- I had a call after, you know, Secretary Rubio talked to Mr. Jaishankar. He talked to me. It was around (INAUDIBLE) on 10th of

Saturday, 10th of May --

ROBERTSON: Right after the counter strike.

DAR: Yeah. And our operation had ended almost. And he said, India is ready to, you know, stop it now.

ROBERTSON: Secretary Rubio said to you that India is ready to stop.

DAR: Yes. Would you be willing? I said, of course. I said, we give you our word, and if India does not restart, we would not do it.

ROBERTSON: And what was -- what did J.D. Vance or Secretary Rubio, what did they say to their Indian counterparts that caused India to say that they

were now ready for mediation?

DAR: I have no idea but I think they were seeing practically that they had seen what happened in the sky and they're air force to air force. And they

were seeing now having sent drones and having fired missiles. Now we are now in a first time reacting after almost three days, so they could see how

serious, you know, the damage was on their side. I'm sure they would have realized that, you know, they had miscalculated.

ROBERTSON: And during this process, the United States gave you assurances about the process. What assurances did they give you?

DAR: Assurance was very simple that if we agree to stop, obviously, I was told that he will reconfirm to the Indian side.

ROBERTSON: Secretary Rubio?

DAR: Secretary of State Rubio will reconfirm and that's exactly what happened.

ROBERTSON: And President Trump has said that he is willing now to continue to engage in this situation. How important to you is that?

DAR: Well, I think it's very important. It's the root cause of this regional instability and danger of, you know, such incidents is actually

the Jammu and Kashmir. It's not us. It's internationally recognized.

ROBERTSON: Bottom line, to resolve Kashmir, your dispute with India, you need the support of the United States and other countries. You can't do it

alone.

DAR: No. Well, we have we are always there, available for composite dialogue. But it takes two to tango. We can't do it solo.

ROBERTSON: Where and when can we expect these talks between you and India over the issue of Kashmir, over the issue of water, over the issue of

terrorism? When's that going to happen?

DAR: Well, I think it is. It is in the interest of everybody to delay or to leave such issues beyond certain reasonable time, create further

complications. Nobody would be interested in creating complications. At least Pakistan is not. We have established our equality. We have

established our deterrence balance.

ROBERTSON: And right now, you remain with an existential issue that India has abrogated the terms of the Indus water treaty from 1960, denying you

the water, they say, from these three major rivers.

DAR: The national security committee of Pakistan declared that if this treaty is tampered, if the water is diverted, if water is stopped, we will

treat it as an act of war.

ROBERTSON: So we have a ceasefire today. The water issue is outstanding, and if it isn't resolved, you're saying composite dialogue. You're saying

if it isn't resolved through composite dialog, then this amounts to an act of war.

[15:45:03]

So you're saying ultimately if it's not resolved, you'll go back to war?

DAR: Well, you see that in the nations movements, there are certain you know, times when you have to take, some very serious decisions, as we did

on ninth night. Now, let us look forward positively. We want to take the whole process forward in a honorable way, with dignity for both sides and

resolve through a composite dialogue. The issues which will give a long- term basis this region peace and security.

(END VIDEOTAPE)

FOSTER: Still to come, the suspects accused of stealing jewels from Kim Kardashian are on trial in Paris.

We'll take a look at what makes the group so unusual.

(COMMERCIAL BREAK)

[15:49:01]

FOSTER: Another high-profile celebrity trial, this time in Paris. A group of thieves accused of breaking into Kim Kardashian's hotel room, tying her

up and stealing millions of dollars in jewels. It happened in 2016, when the reality star was in France for Paris Fashion Week, and Kim Kardashian

is expected to give testimony on Tuesday.

Here's CNN's Saskya Vandoorne.

(BEGIN VIDEOTAPE)

SASKYA VANDOORNE, CNN CORRESPONDENT: They shuffle into court frail aging, some battling serious health issues. But these men, known as the "Grandpa

Gang", stand accused of a violent heist. Ten people are on trial. Most are over 60.

Among them, alleged mastermind Aomar Ait Khedache. He's accused of being part of the gang that tied up Kim Kardashian, locking her in a bathroom and

making off with millions in cash and jewelry, including her diamond engagement ring, which was never recovered.

Now partially deaf, the proceedings are being transcribed for him to follow along.

[15:50:01]

CHLOE ARNOUX, LAWYER FOR AOMAR AIT KHEDACHE: My clients already apologized to her. Well, he tried to do so by sending her a letter, and I think he is

very remorseful about what he's done and the fact of having seen her on TV describing her fear, describing the stress she felt.

KIM KARDASHIAN, MEDIA CELEBRITY: I didn't know who he was. And I'm like, what is happening? Are we going to die? Just tell them I have children like

I have babies, I have a husband, I have a family. Like I have to get home.

VANDOORNE: Khedache, a school dropout who spent much of his adult life in and out of prison, is pleading guilty to armed robbery and kidnaping,

according to his attorney. Yunice Abbas, a repeat offender with a long list of crimes to his name, wrote a book on the heist. He admits taking part in

the robbery, but denies involvement in the kidnaping.

YUNICE ABBAS, DEFENDANT: It will happen naturally. I will apologize, but will it make a difference? I've done it several times. I did it during the

hearing. In TV interviews. I've always done it.

VANDOORNE: Abbas has blamed the TV reality star for flaunting her jewelry online, and says he tracked her movements in the days leading up to the

robbery. The prosecutor says this was no spur of the moment crime. It was a carefully planned job by seasoned offenders. Their case has built on DNA

evidence, security footage and wiretapped calls tying key suspects to the crime.

The trial is also reopening trauma for others the night receptionist described as the forgotten victim, was caught in the chaos nearly nine

years ago. When Kardashian takes the stand in Paris, Tuesday, security will tighten a packed courtroom and increased police presence are expected,

underscoring the trials enduring global spotlight.

Saskya Vandoorne, CNN, Paris.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

FOSTER: The Israeli military is sharing video of a reunion between U.S. Israeli hostage Edan Alexander and his family. Take a look. Alexander was

freed by Hamas earlier today and moved to an Israeli military base.

This is the moment.

(VIDEO CLIP PLAYS)

FOSTER: His mother raced to embrace her son, screaming with joy. As you can see. Alexanders been moved since to an Israeli hospital. He's got to have

those checks, but he looks pretty well, doesn't he? He is the last known living American hostage captured by Hamas on October the 7th.

This year's Eurovision song contest kicked off on Sunday in a big way. Check out this huge parade in Basel, in Switzerland. You can see the stream

of flags and costumes. Basel hosts the Eurovision Semifinals on Tuesday and Thursday.

On Saturday, up to 12,000 fans will watch the final in person. Last year, 163 million viewers worldwide watched Switzerland's Nemo win Eurovision. In

case you missed it. This year, the group KAJ representing Sweden are favorites to win.

Finally, tonight in Germany, the public finally got to see twin tiger cubs at the Frankfurt zoo on Friday. Look at that. According to the zoo's

director, Rasmi and Mandala are lively and they're curious. And that's when they're not sleeping.

This is the first time the Sumatran tiger babies could be viewed by zoo visitors since they were born.

I'm Max Foster. That was WHAT WE KNOW today.

"QUEST MEANS BUSINESS" up next.

END

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