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What We Know with Max Foster

Trump Unveils New Global Tariffs To Take Effect August 7; Stocks Sink After Trump Makes His Tariff Plan Clear; Putin: Russian Forces Are Advancing On Front Lines; Trump Orders Nuclear Submarines To Move Over Moscow's Remarks; Huckabee Praises GHF For Distributing More Than 100 Million Meals In Gaza: "Incredible Feat!"; Pope Leo's First Youth Jubilee. Aired 3-4p ET

Aired August 01, 2025 - 15:00   ET

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

[15:00:28]

CHRISTINA MACFARLANE, CNN HOST: U.S. markets sink as Donald Trump unveils his latest round of global tariffs.

I'm Christina Macfarlane, in for Max Foster. This is WHAT WE KNOW.

Markets around the world are facing steep losses in the wake of a new round of sweeping tariffs from President Donald Trump. Higher tariffs against

more than 60 U.S. trade partners are now scheduled to go into effect next Thursday, as the president ramps up his trade war.

A 10 percent tariff increase will apply to countries the U.S. has a trade surplus with nations that have a trade deficit with the United States are

facing a minimum 15 percent tariff rate, while neighboring Canada is being hit with a 35 percent tariff rate. While President Trump agreed to a 90 day

pause on new tariffs for Mexico.

China, meanwhile, is looking at a whopping 64 percent tariff rate if it fails to make a deal with the U.S. by that August 12th deadline.

And a quick check of the U.S. stocks less than an hour before the closing bell, the Dow though, as you can see down by 1.3. And it has been in the

red all day. Arrows across the board in the wake of the trade tariff announcements.

Now let's go straight out to CNN's Kevin Liptak who's joining us from the White House.

And, Kevin, we really are now in an entirely new era. It seems President Trump shaping global trade as he pledged to do. The highest tariff hikes in

more than a century. But I think what we weren't expecting is that these wouldn't go into effect for another week, which I guess allows for a bit

more wiggle room, a bit more time for negotiation.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yeah, it both allows the customs inspectors in the United States to get used to some of these new

tariffs and prepare to apply them to imports into the U.S., but it also gives these countries time to try and wrangle to get their rate lowered.

And in fact, we did hear from President Trump just yesterday afternoon that the delegations were still coming to try and negotiate these new trade

deals this weeklong grace period does allow them some more time to do that.

The other sort of aspect of the timing that is interesting is that the, you know, goods that are on ships loaded up by the August 7th deadline, by next

Thursday that don't arrive in the U.S. until October 5th, will also not be subject to the new tariffs. And so that could potentially put off the risk

of higher prices for consumers that economists have been warning about potentially, you know, maybe to the end of the year, the start of next

year. And so, you do see how the timing of all of this will have a major impact on how consumers are affected and how these countries will try and

navigate their own new trade deals.

But you're right, we are now in an entirely new trade era, really reimagined by President Trump to his liking. You know, he promised as a

candidate to try and rebalance global trade to center U.S. manufacturers and U.S. workers in a way that he had been said -- had been devalued over

the last several decades. Now we are doing just that. And I think the real question is kind of how fixed all of this is.

You know, if history is any example, the president isn't necessarily all that, you know, adhered to some of these rates. He's shown a degree of

flexibility previously, if countries come to him with some sort of offer, he seems willing to accept that. And in fact, we saw that yesterday when he

announced this new 90-day reprieve for Mexico that would put off some of the heaviest tariffs on that country as he and the President Claudia

Sheinbaum try and work out a trade deal.

So, the president, you know, now near a new era, clearly feeling very vindicated in this policy that had seen so many fits and starts and

extensions and delays since he first announced it back in April. Now the president seems very intent on allowing this new tariff regime to take

effect.

MACFARLANE: All right. Kevin Liptak, thank you.

Now, Russian President Vladimir Putin says Russian forces are advancing along the entire line of contact in Ukraine. This indicates no change in

Moscow's position, one week ahead of the Trump administrations ceasefire deadline. This also follows a brutal pre-dawn attack on Kyiv Thursday,

which left at least 31 people dead. Officials say it was the deadliest single attack on the Ukrainian capital in a year.

Well, Nick Paton Walsh is on the ground for us in Kyiv.

And, Nick, in light of this attack on Kyiv in the last few days, is there a sense that Donald Trump's tightened deadline is having any or bringing any

change really to the realities for people on the ground there in Ukraine?

[15:05:05]

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Ultimately not. And I think there are some who try and suggest there's a

rhythm to the Kremlin's attacks against the capital. That after we hear a souring of Trump's tone, the assaults increased.

But I think it's hard, given the pattern were seeing of every ten days, there being a major assault of some description to really define that as

being accurate. What we saw on the very early hours of Thursday morning, 4:40 a.m. was a singular strike. One of five missiles that got through the

defenses here against an apartment block on the northwest of the city.

That caused the place to collapse. And after they picked through the rubble over hours, discovered 28 people had lost their lives. And that one

building alone. Let me give you some of the names here. Six-year-old Matvey Marchenko (ph), a karate fan who loved the martial art, going for

practicing with his older brothers. Irina Hermaniuk (ph), who died alongside her two daughters, Nastia and Elena. Ad a policewoman, Lilia

Stepanchuk (ph), who died there as well.

Look, the scenes there, we were there earlier on today. Horrific, frankly, the level of destruction. But it's just an example of how lethal these

missiles can be if they get through the air defenses indeed.

And we've been reporting on the eastern front lines in a town called Kramatorsk, where on the 22nd of July, a ten-year-old boy was the only

person to die from one Russian airstrike.

Here's his story. His name is Tymur Grigorenko.

(BEGIN VIDEOTAPE)

WALSH (voice-over): When wars kill for years, names bleed into lists without faces. But each loss still burns a black hole in the worlds they

left behind.

Tymur was age 10. He was visiting his grandmother in Kramatorsk, he really wanted to see her, when a 250-kilogram Russian bomb hit her top floor home.

It was 4:40 a.m. on July the 22nd, and Tymur slept alone in the spare room. Toys flipped up on the roof. His mother, Nastiya, had left them together

that night and was due to take Tymur home to Kyiv the next morning.

ANASTASIYA CHAICHENKO, MOTHER OF 10-YEAR-OLD KILLED BY RUSSIAN STRIKE: He said he wanted to stay. I said, "No, son, we're going, we're definitely

going." Then, at that very moment, I wasn't at home, unfortunately. I don't know why or how -- what forces took me away from it. But I should have been

with him. And I blame myself very much for that.

WALSH: Tymur grew up in war, born in 2015, when Vladimir Putin was also annexing towns while talking peace.

His father Yevgeny, playing with him here, was killed fighting the Russians near Lyman 26 months ago. When Nastiya's sister rang at 5:00 a.m., she

sensed it meant more loss, and at first hung up. Didn't want to take the call.

CHAICHENKO: She said, "They took mom away and they're searching for Tymur under the rubble. He should at the scene. From that moment on, I felt like

I was in a dream.

WALSH: At the scene, rescuers had pulled Tymur out. And here are their desperate efforts to resuscitate him.

CHAICHENKO: It was like a new breath of hope when one of the soldiers came out and said that he had a pulse and they were resuscitating him. And for

those 40 minutes while they were pumping him, I prayed to God to give him life. But the miracle didn't happen. And I couldn't go up there. I went

straight to my mom at the hospital.

WALSH: Tymur was the only one to die that night and is buried on the edge of Kramatorsk, where the graves are ready for more, and the skyline, often

loud. Nastiya remembers their last moment together.

CHAICHENKO: You know, it was such -- a very warm last moment with him. We went crazy, I showed him how I used to give him massages when he was a

baby, we laughed, and that was it.

TYMUR: I wish you a beautiful love. I wish you a happy family.

CHAICHENKO: He loved all the animals very much and kids.

[15:10:03]

At home in Kyiv, he has two pet rats waiting for him. He loved them madly. He constantly called me and asked, "Mom, did you clean their cage?" "Did

you feed them? Do they have water?" Very caring, very bright boy. Very.

WALSH: As towns fall and deadlines pass, remember Tymur Grigorenko, age 10, who knew only war, whose teacher said he spoke up when girls were picked

on, who had two pet rats and who really wanted to stay with his grandmother on the night a Russian airstrike killed only him as he slept.

(END VIDEOTAPE)

WALSH (on camera): These sort of stories are dead children in Kyiv two nights ago there in Kramatorsk, a week ago, just part of the relentless

brutality of what we've been seeing hitting Ukraine's civilian population almost every night. What does this do, though, more broadly to the calculus

of the conflict and this extraordinary week that's coming up at the end of which President Donald Trump has said if he doesn't see peace imminent with

Russia in this war, that he imposed secondary sanctions against Russia's major energy customers and potentially against Russia itself.

Well, we've had a very strange exchange over the last 24 hours. The former president of Russia, Dmitri Medvedev, talking on social media about the

dead hand of Russia's nuclear power and essentially throwing yet another nuclear threat in the Western direction.

He's known for his outspoken rhetoric doesn't always reflect policy, and that's led to U.S. president Donald Trump saying openly rare to hear a U.S.

president openly discuss nuclear strategy and positioning, but saying he would move to nuclear submarines to an appropriate position, essentially

saying, you know, don't mess with us with that kind of talk. We'll respond in reality, an unthought of, frankly, escalation in the rhetoric between

the two countries.

And Russian President Vladimir Putin himself saying that disappointment that Trump has been feeling is basically down to inflated expectations.

Look, there is no sign at this point that we're looking for happy diplomacy to take root in the next week or so. Instead, Putin clear that he's

successful in his summer offensive shows absolutely no sign of slowing down at all. And the possibility, too, that that will turn into a change

strategically on the front lines we've been seeing over the past week, when it turns into Russia's advances -- Christina.

MACFARLANE: You know, Nick, it's in moments like this that it is so important to hear those personal accounts of loss in Ukraine and we thank

you for that report.

Well, as Nick was mentioning there, U.S. President Donald Trump is now ordering the movement of two nuclear submarines. It comes in response to

what he calls highly provocative remarks by Russia's former president, Dmitri Medvedev.

On Truth Social President Trump says the subs will be moved, quote, in the appropriate regions, just in case these foolish and inflammatory statements

are more than just that, words are very important and can often lead to unintended consequences. I hope this will not be one of those instances.

Well, Natasha Bertrand is standing by.

Natasha, how exceptional were these comments from the former President Medvedev to warrant the move of nuclear submarines? And is this really all

just part of the pressure campaign as we count down to that 10-day deadline?

NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: Well, Christina, they weren't really all that exceptional. Dmitri Medvedev, he often invokes

Russia's nuclear arsenal in posts on X in regular public statements, something that is deemed very irresponsible by the United States and has

been condemned repeatedly, but that he has continued doing. And he did so again on Thursday when he referred to Russia's nuclear arsenal. And he

suggested that it is available to them should the United States do anything to them first.

And so, he has been kind of dangling this for quite some time now. And it seems like President Trump had enough here and is sending a message of his

own by deploying these nuclear submarines.

Again, we don't know if they are simply the nuclear capable submarines or the nuclear-powered submarines. In other words, whether they actually are

carrying nuclear warheads or whether they are simply powered by nuclear energy closer to Russia, it does appear like these are the submarines that

have those nuclear warheads on them. There are about a dozen or so, just over a dozen of them in the U.S.'s inventory, and they regularly patrol

around U.S. adversaries, around Russia, around China, in hotspots around the world. And they are meant as deterrents.

[15:15:00]

They are essentially meant to be available to the United States should the U.S. decide to launch some kind of strike in response to another nation

using its nuclear weapons.

But again, it is very rare. While it is not rare for the Russians to kind of use their nuclear arsenal as a talking point, it is very rare for the

U.S. to signal where these nuclear submarines actually are in the world. And so, the fact that President Trump has done so here is pretty

extraordinary in and of itself. Again, probably sent more meant as a message being sent to the Russians than of any sign that the U.S. is

actually prepared to use these weapons again, more as a deterrent than anything else, but still pretty remarkable that Medvedev's threats here

have clearly triggered something in President Trump where he feels the need to convey to the world that these submarines are around the Russians --

Christina.

MACFARLANE: Yeah, certainly remarkable.

Natasha, appreciate your reporting. Thank you.

All right. Still to come tonight, praising aid efforts amid a looming famine. We'll tell you about a high-level U.S. visit to an aid distribution

site in Gaza.

(COMMERCIAL BREAK)

MACFARLANE: U.S. Ambassador to Israel Mike Huckabee is praising a controversial aid distribution system in Gaza, saying it's accomplished an

incredible feat. Huckabee visited one of the three operational sites run by the Gaza humanitarian foundation today, along with U.S. envoy Steve

Witkoff.

Huckabee says more than 100 million meals have been distributed since May. That's less than a meal a day for 2.1 million residents. Their visit failed

to prevent dozens more Palestinians from being killed while waiting for aid in what's become virtually a daily occurrence. Nasser Hospital says at

least three were killed near the same site, visited by Witkoff and Huckabee.

One man who was shot in the stomach spoke to CNN, saying Witkoff and his visits are, quote, nonsense.

[15:20:08]

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: As soon as Witkoff arrived in the area, there was random gunfire. The shooting intensified, along with drones and quadcopters in the

air, and they started firing at people. Bodies are scattered all over the place. We can't survive like this. Open the crossings.

(END VIDEO CLIP)

MACFARLANE: So what we want to know is, will the United States pressure Israel to let more aid into Gaza?

Joining me now is Dr. Mustafa Barghouti, a member of the Palestinian parliament.

Thank you so much for your time this evening. As I was just saying there, I mean, after the ambassador left the distribution site today, he called what

he saw there as incredible on social media. So do you agree with the Palestinian man we just heard just now that this was nonsense and all

really just a performative trip?

MUSTAFA BARGHOUTI, PRESIDENT, PALESTINIAN NATIONAL INITIATIVE: Absolutely. I agree with the Palestinian voice that we heard from Gaza.

And regarding Ambassador Huckabee, it's not the first time that he makes statements that are totally biased to Israeli view. This is the man who

said before when he came to Israel as an ambassador of the United States, that Palestinian people don't exist, that there are no Palestinian people.

I mean, that's the level of his behavior.

But more than that, and that's the most important thing. I don't know what they were trying to investigate in five hours, visiting only with the

Israelis alone, not even trying to see any Palestinian and talk to Palestinians in Gaza. Mr. Witkoff should have visited the Palestinian

hospitals in Gaza, which were bombarded regularly by Israel.

And things don't need to be investigated. Up until now, 1,373 Palestinians were killed near the Gaza Humanitarian Foundation centers. These -- they're

called them humanitarian, but they are not humanitarian at all. They've become death traps for Palestinians and people are dying from hunger.

I don't know what he's talking about. When he speaks about millions of meals, but the reality is that up until this moment, 162 Palestinians have

died of starvation, including 92 children. And the UNICEF says that 200,000 children are at the edge of death now because of starvation. UNFPA says,

it's a United Nation organization, says that 500,000 Palestinians could die at any moment because of starvation.

MACFARLANE: Yeah, I mean, look, this week we saw multiple Arab nations, including Qatar, Saudi Arabia and Egypt, as well as European partners

calling on Hamas to disarm and give up power in Gaza.

Did you agree with those statements? And if so, what does that future look like given we know Benjamin Netanyahu has said there will be no Hamas or

Palestinian Authority in Gaza after the war ends?

BARGHOUTI: Well, we do -- we lost already one year to achieve what they are talking about now. Already a year ago exactly, we met in Beijing. All the

Palestinian groups, the Palestinian parties and Hamas told us then that they are ready not to be in the government and they don't want to be the

government. And everybody agreed on creating an independent national consensus government that could be ruling Gaza, preparing for elections

later, and that could work on stopping this terrible war and stopping these -- this terrible genocide.

So, what they want to achieve is already achieved. Hamas has already informed us many times and more than once, and they've declared that

publicly that they don't want to be the government. The question is who's going to run Gaza? It cannot be Israel that wants to maintain its presence

there as an occupying power, without taking responsibility for the people, or because they want to allow collaborators that work with them to be

running Gaza.

Palestinians have the right to rule themselves, and they don't need an external force to do that for them.

MACFARLANE: I just wonder then, given this happened a year ago, how you are viewing this moment of pressure from the international community and how

urgent it is to act now on Gaza's future to prevent more extremist visions of that future taking place and backed by the U.S., I might add. And by

that, I'm speaking here about the likes of Bezalel Smotrich openly urging Benjamin Netanyahu to apply sovereignty to the West Bank. I mean, how do

you intensify and capitalize on this moment?

BARGHOUTI: The pressure is going in the wrong direction.

[15:25:01]

The pressure has to go in the direction of Israel. And excuse me for the expression, the fascist government in Israel. Netanyahu has allowed

fascists to be running his government. That's what Lapid said, who is the head of the Israeli opposition.

And what we need here is pressure on Israel to stop this terrible war, not only to stop the starvation, but to stop the genocide that is happening in

Gaza, which took the lives already of 60,000 people, including 18,000 children. There is no justification for that thing to continue.

And when you see the United States, instead of punishing the aggressor, which has caused so much killing and so much injuries to the Palestinian

people, instead of punishing Israel, they are punishing the Palestinian Authority by taking measures against Palestinians, punishing the victims.

This is very strange. The pressure has to go in one direction, force Israel to stop this terrible war, force Israel to accept ceasefire, force Israel

to withdraw its forces from Gaza and allow reconstruction of what Israel has destroyed. Terrible destruction.

If this war continues, this confirms that the world is allowing and the United States of America is allowing Israel to commit the huge and big, big

crime of ethnic cleansing of the Palestinian people, because this is the real goal of this Israeli government -- genocide and then ethnic cleansing

of the population of Gaza.

MACFARLANE: Dr. Mustafa Barghouti, we appreciate your comments this evening, and thank you so much for being here.

BARGHOUTI: Thank you.

MACFARLANE: And recent weeks, pressure has been mounting on Israel to allow more aid into Gaza. Images of starving and malnourished children have

shocked the world, and it does feel as though something has shifted in recent days. Here on this show, we wanted to give you a snapshot of the

stories we've heard this week the heartbreak of families unable to find food for their children. Another medically evacuated to the U.K. so you can

receive the care he desperately needs, and all the while calls for Israel to stop the suffering.

Take a listen.

(BEGIN VIDEO CLIP)

NADIA EL-NAKLA, FAMILY MEMBERS ARE IN GAZA: She said a few days ago that they had a small loaf of bread that she was trying not to eat herself so

she could keep it for the kids. She also said that when advised her -- by her sister to forage for some leaves and grass, that she couldn't even find

that to eat.

HUMZA YOUSAF, FORMER FIRST MINISTER OF SCOTLAND: All of world leaders must be incensed, must be at least tortured inside by the images of emaciated

children, starving mothers and fathers. How can they not work together to at least allow aid to flow in? Forget the geopolitics for a second. And I

know that's hard given the situation we're dealing with, but surely we must all be able to agree that starving children must be allowed to have access

to food.

TAREQ HAILAT, HEAD OF TREATMENT ABROAD PROGRAM, PALESTINE CHILDREN'S RELIEF FUND: It's honestly so sad, you know, on a daily basis., my phone rings

more than 100 times. I mean, as we're having this interview right now, I'm getting notifications on my phone from desperate families pleading, and

what's more sad than anything is the fact that when you hear these success stories, there are so many others that never got to the point of success

that were not as fortunate as Aya.

OMAR DIN, CO-FOUNDER, PROJECT PURE HOPE: And on the day of the incident, he had gone out with a few of his friends to get some aid from the Kuwaiti

camp. So, he was going to get food for his family. One of his friends who was with him, they were walking along. They spotted some Israeli tanks that

started shelling them and others in the vicinity, and one of the shells caused his friend to die and blew up in the vicinity of Majd, and it caused

his both of his jaws to be broken in multiple places. And for a lot of his face to be disfigured.

SIR ROGER GALE, UK CONSERVATIVE MP: The solution to the problem in that part of the Middle East is a two-state solution. That means recognize,

recognizing Palestine. This is not a reward for Hamas. Hamas is unspeakable.

It shouldn't be conflated. Recognition should not be conflated with rewarding Hamas. It is part of the solution. But we have to send a very

clear message to Israel whether we have the support of the United States of America or not, we have to join with those of a like mind and be on the

right side of history.

(END VIDEO CLIP)

MACFARLANE: We'll be right back after this short break.

(COMMERCIAL BREAK)

[15:33:06]

MACFARLANE: More than 60 countries are facing higher U.S. tariffs beginning next Thursday. And some of those increases are substantial. Tariff rates

will rise between 10 and 50 percent in the last chapter of U.S. President Donald Trump's trade war.

Mexico has been given a 90-day extension on yesterday's trade deadline. Electronics, toys and clothes are among the items that American consumers

may soon have to pay more for. Mr. Trump says the levies will help bring new jobs to the United States.

The U.S. tariffs are having a big impacts on the markets. Stocks initially sank after President Donald Trump announced his sweeping tariff plans.

Here's a look at the big board right now. The Dow down by over a point and red arrows, as you can see there, across the board. The Nasdaq down the

most there are by under 2.2 percent.

So, what we don't know is how the markets finally woken up to Trump's tariff reality.

Joining me now is Art Hogan, chief market strategist with B. Riley Financial.

Great to have you with us, sir.

So, it does appear, Art, that there is no TACO Trump here, following through on what he threatened to do. But you know, investors have known

about what's been coming for weeks. So why did we see these markets open so sharply down today?

ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY FINANCIAL: Yeah, I would tell you this. So, taking a step back. Liberation day, April 2nd when the

reciprocal tariffs were announced that was much larger than anybody had believed and delivered in a very chaotic, chaotic fashion. And the market

had a quick 10 percent drawdown in the week following that and bottomed on April 8th.

And it bottomed because we started to get those delays that 90-day negotiating period. And we're -- we that hope we'd start to hear about some

deals.

Well, the only real deal we heard about in that time frame was the U.K. And that was actually a pretty reasonable deal, 10 percent across the board

with a little bit more for steel and aluminum and some carve outs for some industries.

[15:35:07]

And I think investors made the assumption that we'll continue to push out deadlines and actually navigate our way to some important and reasonable

deals. And unfortunately, none of that's really happened. So, the eurozone comes in at 15 percent. That's higher than expectations but lower than the

30 percent that was threatened.

And then you take a step back and say, okay, what are four biggest trade partners. And it's clearly the Eurozone, Mexico Canada and China. And three

of those four are still in the unknown category, but are certainly being threatened at a much higher rate. And that turns everything on its head.

We -- you know, we went from thinking the U.K. trade deal was going to be the template for everything to wait a minute, it's going to be

significantly higher than that. And there's no rhyme or reason for why we haven't accomplished over the course of 90 or 100 days, getting to a place

where this looks like a reasonable exit to this trade war highway.

MACFARLANE: It's funny you say, you know, that were sort of waking up, I think, a bit now to the reality of what has happened, especially with those

big Trump trading partners, because I think Donald Trump has really challenged our whole perception of trade and what constitutes, you know,

like poor tariff deals, good tariff deals.

I mean, countries have been looking at 15 percent tariff deals like the E.U. and in some senses, breathing a sigh of relief that it wasn't worse.

And we've seen markets opening down and thinking as well. Well, you know, it could have been worse. It does feel a little bit like Trump has shifted

our worldview here.

But ultimately, is this a strategy for him that is going to win out?

HOGAN: I don't know if it's going to win out unless and until we get to a place where there is something reasonable decided between Mexico, Canada

and the United States. And, you know, in the last go round, the first administration changed the, you know, the name of NAFTA as the USMCA. And

yet trade between the two of our most important trade partners continued pretty seamlessly.

Now, that is in question right now. And that's the tricky part. So going along from April until coming into this week, we made an assumption that

things would look a whole lot more like the U.K., or perhaps the Eurozone, and it just not. That's just not playing out.

And the fact that all these letters are going out and they range from 10 percent with countries that we actually have a trade surplus with to 50

percent is just not tenable. And we're running out of rope on this. So, we're getting to a place where investors just can't ignore this anymore.

MACFARLANE: And it's interesting to see the Vix, I guess they call it Wall Street's fear gauge jumping to 22 percent Friday morning. I mean, how hard

do you expect this is going to hit the U.S. economy. And what are your biggest concerns at this point?

HOGAN: Well, we've already seen to a certain extent some of the impacts. So, the uncertainty around trade and tariffs showed up in the soft data.

The survey data throughout the entirety of the second quarter, what's now showing up is the hard data. So we just got a personal consumption

expenditure inflation report, the PCE, that showed significant a significant uptick in prices for goods.

We certainly -- we got a GDP report that showed the first half of this year we had an average GDP of 1.2 percent versus 2.4 percent in the second half

of last year. So that's an economic slowdown. And today, we got a jobs report that showed that as opposed to thinking were creating 150,000 jobs

on a monthly basis, which was the three month average.

Apparently, we're creating about 40,000 jobs on a monthly basis, significantly lower than anticipated and largely due to uncertainty around

trade and tariffs.

MACFARLANE: Yeah, and you're right to point out, I guess, the kind of elephant in the room there being inflation, the latest U.S. data is saying,

you know, did give us evidence that tariff charges are being passed down to supply chains, which of course could in turn hit consumers.

Given that then, were the Federal Reserve right to hold steady on interest rates this week, and how likely are we now to see the rate change in

September?

HOGAN: Yeah. Great question. Had the Federal Reserve had the jobs report while they were talking for two days, they likely would have cut. Thats the

one thing they're paying the most attention to is the slowdown in economic activity as it pertains to employment. I think that the likelihood for a

rate cut by the fed in September went from something this morning, went from a 40 percent chance to a 70 percent chance.

So I think they're starting to see the impact on the labor force. That's one of their mandates that they're going to protect. I think they'll look

at tariff pricing and inflation as a one-time price adjustment and focus more on their mandate for full employment.

MACFARLANE: Hogan, always great to have you on in these moments, sir. Appreciate your time tonight. Thank you.

HOGAN: Thank you.

MACFARLANE: Well, just minutes ago, we learned that the head of the U.S. Bureau of Labor Statistics has been fired. Earlier today, president Donald

Trump had accused Erika McEntarfer, who was nominated by former President Joe Biden of manipulating jobs numbers, quote, for political purposes.

[15:40:02]

The U.S. only added 73,000 jobs last month. May and June's payroll gains were revised down, too.

Richard Quest is joining us now at the Frick Collection in New York.

And, Richard, I guess this could be called a bit of a Trumpian authoritarian move to remove the person who he accuses of being at the

heart of this poor jobs report. Theres no evidence, is there, that these jobs, this job report, was manipulated, but there were some pretty stunning

revisions announced today.

RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: Yes, we saw both the poor, very poor jobs number for the month that's just gone. And the revisions

sharply lower for the previous few months. But that's one on one.

And what the president's come up with is about 45, because he has now decided to fire this person who's responsible for the BLS, the Bureau of

Labor Statistics, and seemingly without any evidence or -- I mean, it is the most extraordinary accusation that this government employee who if you

look at her confirmation back in January, yes, she may have been nominated by the former president, but she was overwhelmingly approved by the U.S.

Senate. More than 85 senators voted for her. So, it's as close as you can come to, to say, it's a bipartisan appointment, if you will.

No evidence whatsoever that there has been any fiddling of the numbers which are getting worse, which is exactly what had been expected.

MACFARLANE: Well, it's certainly been a big week on the economic front. I'm sure we'll have another big week next week.

But for summer Fridays, Richard, I understand where you're at The Frick there. Tell us what's happening. I can see a hubbub behind you.

QUEST: Yeah, look at this. Look at this. I'm just going to move out a bit. Isn't this beautiful? This is the main gallery here of the Frick Collection

up on Fifth Avenue in New York.

And it's just reopened after -- I mean, it's one of the jewels in the cultural life of New York. It's just reopened after a quarter of $1 million

renovation. Renovation up top to bottom, left to right, inside out. Absolutely spectacular.

And we're here, of course, we're very lucky to be allowed to be here today to show you this. And by the way, just look at those wonderful flowers in

the middle. They're sort of replicas of the flowers that were here when the whole thing started. Excuse me. Thank you very much.

Those flowers are actually ceramics. Can you believe it? They are gentle ceramics which have been made by an artist, and we'll be talking to him

later in the program. We'll also be talking about jobs, by the way, and we'll be talking about trade, and we'll be talking about tariffs because

interestingly, and I know you'll want to know about this, all of this was the product of coke, iron, steel from the Gilded Age. This is classic

industrial money that was put into philanthropy. And we're going to be talking about all of that old money.

MACFARLANE: Oh, I do love a bit of Gilded Age series. I'm currently watching on Netflix as it happens.

So, Richard, lovely place to be on a Friday afternoon. Appreciate it. Thank you.

QUEST: Absolutely.

MACFARLANE: All right. Still to come, Pope Leo is taking part in his first jubilee of the youth. It will be an important test for the pontiff as tens

of thousands of young pilgrims take part in a day of penance.

(COMMERCIAL BREAK)

[15:46:44]

MACFARLANE: 2025 marks jubilee year in the Catholic faith, a special time to focus on reconciliation and spirituality.

As Christopher Lamb reports, thousands of young Catholics have been visiting the Vatican this week for youth jubilee.

(BEGIN VIDEOTAPE)

POPE LEO XIV, CATHOLIC CHURCH: You are the light of the world.

CHRISTOPHER LAMB, CNN VATICN CORRESPONDENT (voice-over): A surprise appearance by Pope Leo in front of thousands of young Catholics. The future

of the church is gathered in Rome in what's being dubbed a Catholic Woodstock. The mega youth gathering, part of the church's jubilee year

celebrations, bringing together an estimated hundreds of thousands from every corner of the globe. Many of them camping out in warehouses like this

one, all part of the festival atmosphere. Not tourists, but pilgrims.

Among those on the streets of Rome, youngsters from Leo's hometown of Chicago, like him, fans of the White Sox and the city's pizza.

VICTORIA AGUIRRE, U.S. PILGRIM: It is such like once in a lifetime experience to just be here, gathered with so many teens of the same faith

from around the world.

LAMB: And if you could ask Pope Leo one thing, what would it be?

AGUIRRE: Deep dish or thin crust pizza?

LAMB: This week, Leo was handed a slice from Aurelio's Pizza, his favorite.

UNIDENTIFIED MALE: Amazing.

POPE LEO XIV: Amazing.

LAMB: It's less than 100 days since Leo's election, and he's still settling into his new role. But this week is a big test.

The long-term trend shows an uptick in young people disaffiliating from mainline religions in the West. But for the Catholic Church, some research

points to a growing interest among Gen Zers in Catholicism.

To that end, Pope Leo meeting Catholic social media influencers this week who were trying to reach a younger generation, and who have turned out in

force.

There are also events like this one where young people are invited to go to confession. There are hundreds of tents laid out for them to go and receive

the sacrament of reconciliation. Same time, though, there's huge enthusiasm for Pope Leo.

JEAN MATTHIEU BILLES NOL, U.S. PILGRIM: I feel like I already know the guy, you know, and just -- just seeing him walk down with the papal cars and him

seeing the American flag and just waving at us, it's super exciting. And I feel like he truly loves us.

LAMB: And at a time of uncertainty, political and otherwise, young people finding in their faith and Pope Leo a reason to hope.

Christopher Lamb, CNN, Rome.

(END VIDEOTAPE)

MACFARLANE: Now it's the auction that shocked the fashion world still to come. We hear from the new owner of the original Birkin bag. Why he thinks

it was worth the price.

(COMMERCIAL BREAK)

[15:52:06]

MACFARLANE: U.S. President Donald Trump is bringing back the presidential fitness test. It's not for him. It's for schoolchildren. He signed an

executive order on Thursday, expanding his council on sports, fitness and nutrition. The president's fitness test is part of that order. It rewards

children who achieve excellence in physical education.

The program began in 1966 under the then President Lyndon Johnson. Barack Obama replaced it in 2012 with a project focused on improving individual

health.

Now, it's always been an exclusive brand, but now the Birkin bag is the most expensive handbag in history. Just weeks ago, the original bag went

for $10 million at auction in Paris.

Saskya Vandoorne spoke to the new owner to find out why he thinks it's worth so much.

(BEGIN VIDEOTAPE)

SASKYA VANDOORNE, CNN CORRESPONDENT (voice-over): This is the moment a bag made history. The original Hermes Birkin designed for a `60s icon smashed

auction records in July, selling for an eye watering $10 million.

And this is the mysterious buyer on the other end of the phone.

SHINSUKE SAKIMOTO, CEO, VALUENCE: I was sitting in this very chair. It was the most expensive purchase I've ever made for a single item. So to be

honest, it was very exciting, but it really made me sick to my stomach.

VANDOORNE: Tokyo-based Shinsuke Sakimoto is a businessman and collector.

In an interview with CNN, he revealed what was really going on behind the scenes in that dramatic 10-minute bidding war.

UNIDENTIFIED FEMALE: We now come to the star maker. Do you want to bid? Six million -- at 6 million euros?

SAKIMOTO: Are there many enemies?

It's a one-on-one match.

They gave up! Here it comes.

UNIDENTIFIED FEMALE: Seven million euros.

SAKIMOTO: Wow, amazing!

For real?

(CHEERING)

VANDOORNE: A former professional soccer player, the auction appeared to bring out Sakimoto's competitive nature.

SAKIMOTO: We were almost at the upper limit, but in those few minutes, we were actually strategizing to inflict psychological damage on our opponents

and force them to give up by making a bid without delay.

VANDOORNE: His company Valuence specializes in circular design and the purchase and sale of rare pre-owned luxury items. But this bag won't be

resold anytime soon.

SAKIMOTO: I think it's a truly artistic piece. We would like to exhibit this at museums and venues to convey this value and background to the next

generation and to inspire people.

(END VIDEOTAPE)

MACFARLANE: Or $10 million on a bag makes me feel a little bit queasy. And I definitely leave it on the tube on the way home.

[15:55:01]

Anyway, finally, tonight, earlier.

(BEGIN VIDEO CLIP)

ANNOUNCER: Full power and liftoff. Go, go. Go Crew 11.

ANNOUNCER: Together we rise as NASA SpaceX Crew 11, heads up to the International Space Station.

ANNOUNCER: Vehicle pitching downrange, 1.7 million pounds.

(END VIDEO CLIP)

MACFARLANE: Earlier today, NASA launched the SpaceX Crew 11 mission from the Kennedy Space Center in Florida. A team of four were on board a SpaceX

Dragon spacecraft atop a SpaceX Falcon 9 rocket. The crew made up of two American NASA astronauts, one Japanese Jaxa astronaut and one Roscosmos

cosmonaut, is headed to the International Space Station. They are scheduled to dock on the ISS Saturday at 3:00 a.m. Eastern Time.

This morning's launch came after a last-minute cancellation yesterday due to the weather, and with that, we are launching you into the weekend.

That's it for us on WHAT WE KNOW.

Do stay tuned for "QUEST MEANS BUSINESS" up next, as you saw from The Frick Collection in New York.

END

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