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Harris Concedes Election, Vows to Continue the Fight; Trump's Plans for Second Term Amid Campaign Promises; Netanyahu Among the First to Congratulate Trump; Zelenskyy Congratulates Trump as Ukraine Waits in Uncertainty; Global Reaction to Donald Trump's Return to Power; Latin America Braces for Trump's Return to Office. Looking at Possible Economic Impact of Trum's Second Presidency; New Data Confirms 2024 will be Hottest Year on Record; How Trump's Victory will Impact Elon Musk. Aired 12-1a ET
Aired November 07, 2024 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[00:00:17]
ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Hello, and welcome to our viewers joining us from all around the world. I'm Rosemary Church live in Atlanta.
Well, as Democrats here in the United States struggle to make sense of their big loss at the ballot box, President Joe Biden and Vice President Kamala Harris are promising Donald Trump a peaceful transfer of power.
Harris addressed supporters at her alma mater, Howard University in Washington, on Wednesday. She says she called President-elect Trump to offer her congratulations. President Biden also spoke with Trump, inviting him to the White House.
Harris told supporters not to throw up their hands in despair but to roll up their sleeves in the fight for freedom and justice.
(BEGIN VIDEO CLIP)
KAMALA HARRIS (D), VICE PRESIDENT OF THE UNITED STATES: A fundamental principle of American democracy is that when we lose an election, we accept the results. That principle, as much as any other, distinguishes democracy from monarchy or tyranny, and anyone who seeks the public trust must honor it.
At the same time in our nation we owe loyalty not to a president or a party, but to the Constitution of the United States. And loyalty to our conscience and to our God. My allegiance to all three is why I am here to say, while I concede this election, I do not concede the fight that fueled this campaign.
(END VIDEO CLIP)
CHURCH: More now from CNN's Jeff Zeleny.
(BEGIN VIDEOTAPE) JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: Vice President Kamala Harris delivering a concession speech a day after losing a landslide election to former president Donald Trump. After a day of phone calls, including speaking with Mr. Trump and President Biden, she delivered a speech at Howard University addressing her supporters.
(BEGIN VIDEO CLIP)
HARRIS: While I concede this election, I do not concede the fight that fueled this campaign.
(APPLAUSE)
HARRIS: The fight, the fight for freedom, for opportunity, for fairness, and the dignity of all people. A fight for the ideals at the heart of our nation. The ideals that reflect America at our best. That is a fight I will never give up.
(END VIDEO CLIP)
ZELENY: Harris saying it's a fight she will not give up. But the question is how she will proceed. She has 75 more days in the Office of Vice President. So of course that gives her time to really focus on her day job, as well as think about what is next.
For all the recriminations that Democrats will be doing poring over these election results, too much focus on abortion rights, perhaps not enough focus on the actual economy. Did President Biden stay in the race too long?
On Thursday President Biden will address the nation in the Rose Garden. Of course, speaking to many of these. But it was Harris who talked to young supporters and others about what they should do going forward.
(BEGIN VIDEO CLIP)
HARRIS: So the young people who are watching, it is OK to feel sad and disappointed. But please know it's going to be OK. On the campaign, I would often say, when we fight, we win. But here's the thing, here's the thing. Sometimes the fight takes a while. That doesn't mean we won't win. That doesn't mean we won't win.
(END VIDEO CLIP)
ZELENY: Now, Harris did pledge to help President-elect Trump through his transition, saying that she and her supporters will ensure a peaceful transition of power. Of course, that did not happen four years ago.
There is no doubt the Democratic Party is in a soul-searching period. The question, what role does Harris have to play in that? Those answers will come in the future weeks.
Jeff Zeleny, CNN, Washington.
(END VIDEOTAPE)
CHURCH: And the next few weeks are important for Donald Trump as he and his transition team prepare for a return to the White House. Sources say the president-elect spent Wednesday taking calls from world and business leaders and meeting donors at Mar-a-Lago. No word yet on whether those talks include plans to make good on promises made on the campaign trail.
CNN's Kristen Holmes takes us through that list.
[00:05:04]
(BEGIN VIDEOTAPE)
KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT (voice-over): President- elect Donald Trump already has a lengthy to-do list.
DONALD TRUMP (R), PRESIDENTIAL-ELECT: Promises made, promises kept. We're going to keep our promises.
HOLMES: Promises he made during his campaign, starting with immigration.
TRUMP: We've got to have the largest mass deportation ever in history and we're going to -- going forward, the future leader of illegal aliens will not receive automatic U.S. citizenship.
HOLMES: Vowing to immediately go after millions of undocumented immigrants, calling for a ban on sanctuary cities, a death penalty for human traffickers, and to reinstate his travel ban on people entering the U.S. from predominantly Muslim countries.
TRUMP: I will send Congress a bill to ban sanctuary cities in the first day that I become president. I will immediately restore and expand the Trump travel ban on entry from terror plagued countries.
HOLMES: On the economy.
TRUMP: Tariffs are the greatest thing ever invented.
HOLMES: Trump has promised massive tariffs on foreign goods, despite economists saying American consumers are likely to pay the price, as well as ending and cutting specific taxes.
TRUMP: My plan will massively cut taxes for workers and small businesses, and we will have no tax on tips, no tax on overtime, and no tax on Social Security benefits for our seniors.
HOLMES: Trump has claimed he could end the conflict in the Middle East and the Russia-Ukraine war immediately.
TRUMP: We're going to take care of Israel and they know that. I will stop the chaos in the Middle East and I will prevent World War Three from happening. Before I even arrive at the Oval Office, shortly after we win the presidency, we, we win the presidency, I will have the horrible war between Russia and Ukraine totally settled. HOLMES: While not offering any explanation of how. He's made
commitments on changing the education system.
TRUMP: On day one, I will sign an executive order banning schools from promoting critical race theory or transgender insanity. I'm going to close the Department of Education and move education back to the states.
HOLMES: Trump has also promised to go after his perceived political enemies.
TRUMP: For those who have been wronged and betrayed, I am your retribution. I will appoint a real special prosecutor to go after the most corrupt president in the history of the United States of America, Joe Biden, and the entire Biden crime family.
HOLMES: Including firing Special Counsel Jack Smith.
TRUMP: I would fire him within two seconds.
HOLMES: Trump has also made promises to those prosecuted for their actions on January 6th.
UNIDENTIFIED MALE: Will you pardon the January 6th rioters who were convicted of federal offenses?
TRUMP: I am inclined to pardon many of them. I can't say for every single one because a couple of them probably they got out of control.
HOLMES: And while unlike some other Republicans, Trump has stated he doesn't want a national abortion ban --
TRUMP: No, I'm not in favor of abortion ban, but it doesn't matter because this issue has now been taken over by the states.
HOLMES: His administration could implement new restrictions without passing a federal law.
Kristen Holmes, CNN, West Palm Beach, Florida.
(END VIDEOTAPE)
CHURCH: To Los Angeles now and Jessica Levinson is a professor of law at Loyola Law School and host of "The Passing Judgment" podcast.
Good to have you with us. Thanks for joining us.
JESSICA LEVINSON, PROFESSOR OF LAW, LOYOLA LAW SCHOOL: Good to be here.
CHURCH: So the polls got it wrong again. Donald Trump, it was a stunning defeat, wasn't it, for Kamala Harris? How did he do it? Even winning the popular vote.
LEVINSON: This was a resounding defeat and a pretty strong message against the Biden administration, against Democrats. I did not expect that Trump would win the national popular vote.
You know, Rosemary, as you and I had talked about, the electoral college really could have gone either way based on those swing state polls. And if they all broke in one direction, which they essentially did, then we were going to see a night like we did last night and, you know, in terms of how did we get here, I mean, I think there are so many reasons, but we certainly do need to look at the voting blocs that voted for Biden in 2020 and then moved to Trump in 2024.
And we're looking at white women. We're looking at Latino voters, both male and female, and we're looking mostly at this bloc of kind of 42 to 64-year-olds. But we knew that the fundamentals were really against Kamala Harris being a member of an administration where people were largely unhappy with that administration and specifically the economy, and the economy weighing as number one on people's minds.
But. you know, Rosemary, as you know, it's complicated and there are a number of different factors that went into people's decisions.
CHURCH: Yes, indeed. And of course, Democrats are doing some soul- searching right now, aren't they?
[00:10:02]
I mean, how did it go so terribly wrong for Kamala Harris and her campaign? And what could she have done differently, do you think, to have changed this?
LEVINSON: You know I don't know that she could have done something dramatically differently.. I know there's a lot of looking back and saying, oh, she should have gone on this podcast, or she should have spent this money in this particular state. And I tend to think it actually goes more towards what we were talking about before, which is that people felt kind of both based in reality and sometimes not that the economy was not working in their favor.
And people absolutely experienced inflation during the last administration. And when you tell people everything is fine and the economy is fine, but it's hard to fill up an entire gas tank and it's hard to put food on the table, and it's hard to make sure that you can pay all the bills at the end of the month, it certainly doesn't feel like it's fine. And that's what a lot of people absolutely experienced.
And when people experience that, they blame leadership and they blame the people at the top who are supposed to be in their view, making policies to change all that. So I don't know that this was a speech that went wrong or a vice presidential pick that went wrong. And I think it tends to be more about the Biden administration, the economy, and Trump's appeal, which at this point, I think is undeniable.
CHURCH: And Jessica, we are seeing the Republican Party unite around Donald Trump. Many jockeying for leadership roles within his new administration as President-elect Trump prepares for his transition to power. But many critics worry there will be fewer guardrails this second time, meaning, of course less advisers and cabinet members pushing back on Trump's worst instincts. So what are your thoughts on this and how bold will he likely be with his new and powerful mandate?
LEVINSON: Well, I think quite bold. You know, this is a really important question because the second administration may not look like the first. And one thing that I focus on today in thinking through, how are things going to change is civil service protection. And I know this might not sound particularly sexy to people but basically, in our country, as you know, that many people who work for the federal government, about 2.2 million, cannot be fired at will, meaning they have a certain level of protection.
And we're talking about people who work on anything from national security to national parks. And the idea of being you should be hired and promoted and retained based on merit, not based on does the president like you or have you pledged loyalty to the president. And we know that in the first Trump term the civil servants did act in some instances as a resistance against Trump's maybe impulses to overreach.
But if he is able to change that, as he says that he might want to, and reclassify many of these experts, these career government servants, as at will employees and fire them and replace them with loyalists, I think that's one area where we really have to watch for change. Another is directing the Department of Justice, as we just heard a few moments ago in the prior segment, to investigate political opponents.
But there are a lot of places where I think Trump learned from the previous administration and he can put a different and more strategic type of pressure on our government.
CHURCH: Jessica Levinson, many thanks for your analysis. Appreciate it.
Well, CNN is following reaction to Donald Trump's victory around the globe, from the Americas to Europe, the Middle East and Asia. And first, we want to go to Israel, where Prime Minister Benjamin Netanyahu who is calling Trump's win a huge victory. He posted on social media that Trump's return to the White House offers, quote, "a new beginning for America and a powerful recommitment to their alliance."
More now from CNN's Matthew Chance in Jerusalem.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN CHIEF GLOBAL AFFAIRS CORRESPONDENT: Well, the Israeli prime minister was among the first to call President-elect Trump to congratulate him on his election victory. That's been emphasized in the short readout of the conversation from the prime minister's office. It says the two men, Trump and Benjamin Netanyahu, agreed to work together for Israel's security and, quote, "discussed the Iranian threat."
Expectations are high in Israel that a second Trump presidency will mean full-throated support for Netanyahu and for the Jewish state, in contrast to what many here see as the Biden administration after the October 7th attacks last year trying to restrain Israel's military action in Gaza, in Lebanon and Iran.
Matthew Chance, CNN, Jerusalem.
(END VIDEOTAPE)
[00:15:01]
CHURCH: Trump's election win will have a huge impact in Ukraine, of course, though it's not yet clear what that impact will be. Ukraine's president is hoping to stay on the president-elect's good side with a swift congratulations.
CNN's Clare Sebastian has more.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN CORRESPONDENT (voice-over): Donald Trump's victory raises existential questions for Ukraine.
TRUMP: If I'm president, I will have that war settled in one day.
SEBASTIAN: And yet, Ukraine's president was one of the first world leaders to congratulate Trump early Wednesday. Volodymyr Zelenskyy even praising his, quote, "decisive leadership." And that's because it's really not yet clear what Trump will be willing or able to do. Don't forget it was Trump that first approved sending lethal aid to Ukraine in 2017, and his first administration slapped multiple rounds of sanctions on Russia, plus Congress actually holds the purse strings here. So despite recent comments like this from Trump's running mate --
(BEGIN VIDEO CLIP)
SEN. J.D. VANCE (R), VICE PRESIDENTIAL-ELECT: My whole argument with Russia and Ukraine is, yes, OK, Russia shouldn't have invaded Ukraine, but a lot of innocent people were getting killed like our interest is in peace. But part of that is motivated by my view that Ukraine is not nearly as important to us as other regions of the world.
(END VIDEO CLIP)
SEBASTIAN: We didn't see instant celebrations in Moscow this morning either. The U.S. is in a position to end the conflict, said Kremlin spokesman Dmitry Peskov, without, of course, mentioning that Russia started it. But he said we will see after January.
Clare Sebastian, CNN, London.
(END VIDEOTAPE)
CHURCH: Congratulations for Donald Trump are accompanied by deep concerns. Just ahead, we are live in Beijing with China's reaction and the threat of looming tariffs.
(COMMERCIAL BREAK)
[00:20:03]
CHURCH: As world leaders congratulate Donald Trump on his presidential victory, some governments are also preparing for the potential impact of his return to the White House.
CNN's Steven Jiang is in Beijing, Mike Valerio is in Seoul, and Stefano Pozzebon is in Bogota.
Welcome to all.
Steven, let's start with you. How is China responding?
STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Yes, Rosemary, unlike four years ago, Xi Jinping didn't wait more than two weeks to congratulate the winner of this U.S. race. The fact he picked up the phone so quickly to not only congratulate Trump but also offering him the -- all the platitudes you would expect from Beijing, emphasizing mutual respect, win-win cooperation and saying the two men should chart a course for the two countries to get along in a new era.
So the timing and the content of this phone call seems to indicate the Chinese have learned something from Trump's first term in office in terms of how he operates and his personality, because Trump and his advisers are reportedly tracking very closely when and how world leaders reach out to him after his election victory.
But still, many Chinese officials, according to sources, are really still haunted by the wild swings in Trump's China policy during his first term in office and the kind of resulting nightmares they had to live through. And they are very much dreading the prospect of having to deal with this all over again. But of course, the fact that Trump is going back to the White House seems to be the only certainty in this picture of uncertainty is not lost on the Chinese government.
But the stakes simply cannot be higher in terms of this relationship between the two superpowers and the world's two biggest economies. Atop of many people's concern, of course, is this potential economic and trade conflict between the two sides because of Trump's campaign rhetoric slapping new and even bigger 60 percent tariffs on Chinese imports. We don't know if he's going to make good of that promise, but the Chinese are taking him very seriously based on his track record.
The worry here, of course, is this time around, there is a sentiment here in Beijing according to analysts, they're not going to take this lying down. They are going to call him bluff. Even with a sluggish economy at home, they're willing and capable of using their tools in their toolbox to fight back. And that of course could have devastating effect not only on the Chinese and U.S. economies, but also for the world at large -- Rosemary.
CHURCH: Steven Jiang in Beijing, many thanks to you.
Want to turn now to Mike Valerio in Seoul.
So, Mike, what is the reaction from South Korea? MIKE VALERIO, CNN CORRESPONDENT: You know, it's cautious, Rosemary.
And there are really two buckets that the South Korean government is looking at from Seoul this afternoon. The first bucket, will President-elect Trump demand that South Korea pay more money to station U.S. troops in South Korea, and then the second bucket, could we be looking at a future summit with President-elect Trump and North Korean leader Kim Jong-un? Unfinished business here on the Korean Peninsula.
So when we're talking about the number of troops that are stationed in South Korea, President-elect Trump has said that he wants South Korea to pay as much as $10 billion for U.S. troops. Right now South Korea is paying in the neighborhood of $1.1 billion for 28,500 American troops on the Korean Peninsula.
Those troops, Rosemary, are used as a counterweight to China and also a security guarantee against North Korea. In fact, there was an agreement that was reached on Monday where South Korea would pay a little bit more, around $1.2 billion annually, we can very much expect President Trump conceivably to tear up that agreement.
Now for a future summit with North Korea's leader, Kim Jong-un, you know, I had the opportunity to talk to Robert C. O'Brien. He was Trump's final national security adviser, serving for about 500 days at the twilight of the Trump administration, and he said, yes, we are looking to finish crescendo that was reached in Hanoi in February of 2019 and try to get some sort of deal with North Korea.
Here's him talking about negotiations between American and North Korean diplomats in Stockholm in the fall of 2019. Listen to what he told us.
(BEGIN VIDEO CLIP)
ROBERT O'BRIEN, FORMER U.S. NATIONAL SECURITY ADVISER: They took a very hard line publicly after the meetings. But we thought that that September, it was September, October, I believe of 2019. We thought that meeting would lead to something maybe another summit in the spring but then, unfortunately, COVID hit and the whole world changed. And especially in North Korea with the total, you know, unbelievable lockdown in North Korea. And so we lost that opportunity.
(END VIDEO CLIP)
VALERIO: So they're looking to again have another shot at what they call an opportunity for a summit with Kim Jong-Un.
But, Rosemary, would North Korea want to come to the negotiating table over the summer, summer of 2024?
[00:25:02]
Kim Jong-un has forged a new military partnership with Russian president Vladimir Putin. They are in a much stronger position of negotiating now. They have Russian backing in terms of money for troops that are going to fight in Russia's war against Ukraine. Assumedly, military technology, according to analysts that we're speaking to, also going to Pyongyang. So it is a much different tableau than where we left it when Trump left office -- Rosemary.
CHURCH: Mike Valerio, with that live report from Seoul. Many thanks to you.
Stefano Pozzebon joins us now from Bogota.
Stefano, how are Latin American leaders reacting to Donald Trump's reelection
STEFANO POZZEBON, JOURNALIST: Well, Rosemary, a mixed reaction. Latin America could be heavily impacted by the new Trump presidency. You have conservative leaders such as Argentina's Javier Milei, the president of El Salvador, Nayib Bukele, and the former president of Brazil, Jair Bolsonaro, all among the very first ones to congratulate Trump. And they will feel emboldened by such a conclusive victory by the right-wing candidate in the United States.
And Argentina's President Milei was quick to work the phone and get in touch with the Trump administration to try to set up a visit even before the new administration takes office, according to Argentinian media.
On the other side, you have progressives such as Colombia's Gustavo Petro, Mexico's Claudia Sheinbaum, who are bracing for a bumpy relationship with the new White House. And if there is a country that is predicted to bear the brunt of those economic policies, new economic policies by the Trump administration, well, that is Mexico, which is the U.S.'s largest trading partner and whose exports could be heavily impacted by the new protectionist tariffs that Trump said he will lay out in the campaign trail.
On Wednesday morning, for example, the Mexican peso tumbled to its lowest level in two years before making up some of that terrain lost. The Mexican president Claudia Sheinbaum told reporters that there is no need to panic and that the U.S. and Mexico are not meant to compete with each other. But her administration will be hard pressed to get on good terms with Trump and probably find a deal before those new economic policies are laid out.
And much of that deal will hover around migration, Rosemary, with Mexico playing a new and more active role, trying to lower the number of migrants reaching the U.S. southern border, which is a massive pledge from the Trump campaign. His pledge also to deport millions of undocumented migrants could wreak havoc to the economies in Latin America because many of these countries rely heavily on remittances from their diasporas in the United States to try to boost their local economies. And one could argue that it will remain a formidable challenge to lower the numbers of migrants towards the U.S. especially if these plans that Trump is laid out will boost the domestic production inside the United States at the expense of the other economies in the continent and the other economies in Latin America.
And lastly, Rosemary, well, authoritarian regimes such as the Venezuelan regime of Nicolas Maduro and Nicaragua's Daniel Ortega, could probably benefit from a more transactional approach to foreign policy by the new White House. The Trump administration may be happy to overlook some of their anti-democratic abuses as long as they revert the migration trend. So as a sum up, mixed reactions and of course bracing for four years of unpredicted foreign policy by the new White House here in Latin America -- Rosemary.
CHURCH: Stefano Pozzebon bringing us that live report from Bogota. Many thanks.
Well, Wall Street is celebrating a quick and decisive outcome in the U.S. election with investors sending stock markets to new record highs. A look at the economics of a second Trump era. That is next.
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CHURCH: Welcome back, everyone. You're watching CNN NEWSROOM, and I'm Rosemary Church.
[00:32:31]
Vice President Kamala Harris says she is committed to a peaceful transfer of power after conceding the U.S. presidential election to Donald Trump on Wednesday.
In a speech at her alma mater, Howard University, Harris did something her opponent refused to do after the 2020 election: accept the results.
Harris said she had spoken with Trump and congratulated him on his victory. She also acknowledged the pain of her loss while offering supporters a positive message, encouraging them to fight in a much different way than a defeated presidential candidate did four years ago.
(BEGIN VIDEO CLIP)
KAMALA HARRIS, VICE PRESIDENT OF THE UNITED STATES, 2024 PRESIDENTIAL NOMINEE: The outcome of this election is not what we wanted, not what we fought for, not what we voted for. But hear me when I say -- hear me when I say, the light of America's promise will always burn bright as long as we never give up, and as long as we keep fighting.
(END VIDEO CLIP)
CHURCH: U.S. stocks soared to new record highs on Wednesday following Donald Trump's victory.
Markets were mostly boosted by an election that was decided relatively quickly, as investors crave certainty. The Dow, S&P 500, and NASDAQ all reached new highs. The Dow surged more than 1,500 points, or more than 3.5 percent.
The S&P climbed by 2.5 percent, and the tech heavy NASDAQ closed nearly 3 percent higher.
The record day on Wall Street comes despite economists' warnings that many of Trump's policies could increase inflation and America's budget deficit.
So, get -- let's -- let's go live now to New York, to Rana Foroohar, CNN global economic analyst, columnist and associate editor at "The Financial Times."
Good to have you with us.
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Good to be here.
CHURCH: So, I want to start with reaction on Wall Street, with U.S. stocks soaring to these record highs a day after the election.
How sustainable is this in the wake of Donald Trump's victory, particularly considering some economists had been warning that Trump's policies, like tax breaks, promises to bring down inflation would increase -- would basically hurt the U.S. economy and increase the budget deficit?
[00:35:09]
FOROOHAR: Well, Rosemary, let's start with the fact that markets usually do go up after a presidential election. That's normal. I think that there's a sense of we know what reality is going to be now. There's a sense of certainty. as you mentioned earlier.
But one thing that's interesting to me is that the markets are, in some ways, betting that Donald Trump will actually not put in his promised campaign issues around economics.
I mean, what the markets are saying is we don't think there are going to be huge tariffs. We think that there's going to be the sort of financialized, you know, tax breaks, low-regulation sort of paradigm that you got in Trump one. Very laissez faire, very, you know, let's do whatever we can to bolster the stock market.
But if you look at what Trump actually promised during the campaign, he promised high tariffs. He actually talked about weakening the dollar as a way of increasing America's export economy.
Now, that's going to be very difficult to do at a time when China is actually ramping up its own manufacturing economy. And, you know, trying to put more cheap goods out there into the world.
But it's interesting to me that there seems to be a disconnect between what the markets believe Trump will do; what his actual campaign promises were.
CHURCH: And of course, the economy was consistently the top issue for most U.S. voters, especially those who -- who have been and were really hurting, despite being told the us economy was the envy of the world.
Was there anything the Biden administration could have done to make their lives better? And how quickly can President-elect Trump turn this around and improve their lives as -- as he has promised?
Well, look, there's no doubt that, during the Biden administration, inflation was a huge topic.
It was a huge issue. It really was a body blow to a lot of people. You had things like food, fuel, housing, going up into the double digits in terms of inflation over the course of two or three years.
And even though the Biden administration did a lot, and the Federal Reserve did very well to curb inflation, and it has been coming down in recent months, that felt experience of several years of really dealing with this is something that I think probably helped tilt the scales towards Donald Trump.
That said, the markets are actually saying they believe that the Trump administration will bring with it more inflation. If you look at the bond market, the bond market is telling us they think inflation is going to be up. They think that the debt levels of the U.S. and borrowing that may take place under the Trump -- second Trump administration could actually contribute to more inflation.
So, you know, and that coupled with tariffs, if they are indeed put in place, would probably create more inflation. So, I'm not at all hopeful that the inflation situation is going to get any better under Donald Trump. In fact, I think it might become worse.
CHURCH: Yes. Interesting. So, you mentioned tariffs with China. So, what impact will Donald Trump's plans for increased tariffs likely have on the economy? And could we see this develop into a trade war with Europe.
FOROOHAR: Well, that's a very interesting question. Let me start with the question about tariffs overall.
I mean, tariffs are one tool in the economic toolbox for protecting an economy. In this case, Trump is looking to protect against Chinese mercantilist practices, to try and ring fence the U.S. domestic manufacturing industry in various areas.
The problem is that, if you're going to institute tariffs, you need to have an industrial strategy at home. I think that's something the Biden administration had. I do not believe that is something we've heard articulated from Donald Trump yet.
At the same time, tariffs are, in some ways, a tax on the consumer in the sense that you're making imported goods more expensive. So, that goes to this inflation question.
You may end up getting a lot more inflation, and unless you have a plan at home to really bolster U.S. exports, which would require a weaker dollar, which is not what we're seeing right now, you could be in a situation where you're getting the inflation without getting any kind of manufacturing competitiveness on the back end of that.
CHURCH: And presumably, I mean, the second Trump presidency and any advisors that have a strength when it comes to the economy would be aware of these concerns from, you know, top elite economists warning about this possibility of higher inflation if Donald Trump goes ahead with some of his policies. Presumably, he won't go through with some of that. Could you see that happening, otherwise the U.S. being able to -- to basically tell the world that they have the best economy post-pandemic, that would change, wouldn't it?
FOROOHAR: Well, look, I frankly don't have a lot of trust that Donald Trump will or won't go through with anything that he has said he will or won't go through with. He doesn't have a wonderful track record of keeping promises. Let's -- let's be honest.
I think that, if I were looking at it from a -- from a Trump-oriented, you know, what do I think Donald Trump would actually do to serve himself as president? I actually don't think he's going to put in place major tariffs. I don't think he's going to risk collapsing the U.S. equity markets.
I'm not even sure he's going to go for a weaker dollar policy, because again, that could affect stock prices. You know, it -- it could, unless it was coupled with a really strong, sensible industrial strategy at home, end up causing more pain than gain.
We are in for a lot of instability right now, Rosemary. I think we're in a sweet spot with market sort of thinking, hey, we're going to get lower taxes. We're going to get lower regulation.
But the bond markets are already telling us we're worried about debt, we're worried about inflation. So, don't get too excited yet.
CHURCH: That's a real concern. Rana Foroohar, thanks for the heads up. Appreciate it.
FOROOHAR: Thank you.
CHURCH: Well, weaker, but still a worry. Hurricane Rafael batters Cuba. We will show you where it might hit next.
(COMMERCIAL BREAK)
[00:54:34]
CHURCH: Israeli airstrikes hit several areas in Lebanon overnight.
This video shows explosions in a Beirut suburb early Thursday morning. It's unclear whether there were casualties in this attack, and Israel says it's looking into it.
But it comes hours after Lebanon's health ministry says Israeli strikes in other parts of the country killed at least 40 people and wounded more than 50 on Wednesday.
An Israeli military source says the strikes hit Hezbollah targets, and the Iran-backed group says it also carried out nearly three dozen attacks on Israeli forces in Southern Lebanon.
Hurricane Rafael is now moving away from Cuba after battering the island on Wednesday. It crashed ashore as a Category 3 storm but has since weakened to Category 2 as it enters the Gulf of Mexico.
The storm caused Cuba's power grid to crash and is the fifth major hurricane in the Atlantic this year.
Rafael has winds of nearly 170 kilometers, or 105 miles per hour. It's not quite clear where it will end up, but it's expected to turn to the West and slow down in the coming days.
It could make landfall as a weaker storm anywhere from the U.S. Gulf Coast to Northeastern Mexico.
Firefighters in Southern California are battling two out-of-control wildfires the National Weather Service says are being fueled by dry conditions and high winds.
The Mountain Fire in Ventura County turned skies dark and a hazy orange on Wednesday. More than 100 firefighters and nearly 60 fire engines were on hand to try and tame the flames, but high winds caused them to spread.
And in Malibu, the Broad Fire has consumed at least two structures, according to officials. Two of California's major power companies have shut off electricity to more than 11,000 customers to prevent further sparks.
Well, many of the extreme weather events around the world can be linked to global warming, and new data confirms 2024 will be the hottest year on record.
It will also be the first year to smash a warming limit scientists have warned about for years.
CNN meteorologist Chad Myers has details.
(BEGIN VIDEOTAPE)
CHAD MYERS, CNN METEOROLOGIST: October 2024 was the second warmest October on record, second only to last year.
But the problem is this number: 1.65 Celsius above pre-industrial levels. Trying to keep that number below 1.5. And that hasn't happened much. We have been above 1.5 for months and months. The only one that we weren't above 1.5, we were 1.48. Close enough.
When you take a look at the entire year, certainly, 2024 will be the warmest year on record and will likely be above 1.50 for the year for the first time ever.
And we're going to be the warmest is because we've had so much warmth here in the beginning of the year, even though we're kind of battling it out here at the end for 2023 and 2024.
There was so many more temperatures, so much higher than 2023 at the beginning. There isn't going to be any chance of us not being the No. 1 year. The top temperature year of all time, since we've been keeping records. And the water is still warm, obviously, warm enough to still make hurricanes out there. Now, the end of hurricane season isn't till the end of November anyway, but rarely do we get a major hurricane making landfall in November, and we just did.
(END VIDEOTAPE)
CHURCH: Chad Myers, many thanks for that.
And we'll take a short break. Back in just a moment.
(COMMERCIAL BREAK)
CHURCH: Welcome back, everyone. It is full steam ahead for team Trump. The president-elect declared victory early Wednesday in West Palm Beach, Florida, where his transition team has already started setting up offices and meeting with candidates to fill administration roles.
They're also working quickly to set up meetings with world leaders like Israeli Prime Minister Benjamin Netanyahu. His office says he was one of the first to congratulate Trump on his victory.
Chinese President Xi Jinping also reached out to Trump on Wednesday. Their relationship will be especially important to watch. Trump initially called their bond outstanding during his first term, but that changed amid a trade war with Beijing and the start of the COVID pandemic.
One phone call Trump probably won't receive is from Russian President Vladimir Putin. The Kremlin says he has no plans to congratulate Trump, while the U.S. continues to aid Ukraine in its war effort.
Well, America's European allies are promising to work with Donald Trump. British Prime Minister Keir Starmer spoke in Parliament Wednesday.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH PRIME MINISTER: Mr. Speaker, can I begin by congratulating President-elect Trump on his historic election victory? As the closest of allies, the U.K. and the U.S. will continue to work together to protect our shared values of freedom and democracy.
(END VIDEO CLIP)
CHURCH: German Chancellor Olaf Scholz is acknowledging some of the uncertainty that comes with an erratic U.S. president-elect, but he is promising stability.
(BEGIN VIDEO CLIP)
OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): Many things will certainly be different under a government led by Donald Trump. Donald Trump has always made that clear publicly.
Our messages are clear. Firstly, Germany will remain a reliable transatlantic partner.
(END VIDEO CLIP)
CHURCH: And French President Emmanuel Macron tweeted this: "Congratulations, President Donald Trump. Ready to work together, as we did for four years. With your convictions and mine. With respect and ambition for more peace and prosperity.
(END VIDEO CLIP)
CHURCH: Well, billionaire businessman Elon Musk donated more than $100 million to support Donald Trump's campaign, and that huge investment seems to be paying off for Musk. On Wednesday, the value of Musk's shares of his electric vehicle company, Tesla, went up by more than $15 billion.
So, what does Trump's victory mean for Elon Musk?
CNN's Brian Todd takes a look.
(BEGIN VIDEOTAPE)
DONALD TRUMP, U.S. PRESIDENT-ELECT: We have a new star. A star is born. Elon.
BRIAN TODD, CNN CORRESPONDENT (voice-over): A victorious Donald Trump effusively thanking billionaire Elon Musk for his support.
TRUMP: He's a character. He's a special guy. He's a super genius.
TODD (voice-over): It's no wonder Trump is grateful. Musk went all in.
MARK PRESTON, CNN SENIOR POLITICAL ANALYST: We've never seen a media baron in this age of social media, somebody who owns one of the most influential social media platforms, become so involved with one person.
TODD (voice-over): Musk has spent at least $118 million for Trump and gave away $1 million a day to supporters. Musk also stumped for Trump and inundated X, the platform he owns, with a torrent of pro-Trump posts and misinformation.
LAURA BARRON-LOPEZ, WHITE HOUSE CORRESPONDENT, PBS NEWS HOUR: He has millions of followers on X on social media, and he has also spread Donald Trump's baseless lies about the election.
TODD (voice-over): Someone, who says he voted for Hillary Clinton and for Joe Biden, now at Trump's side on election night, and posting, "The future is going to be so" fire emoji.
[00:55:08]
What does Trump's victory mean for Musk?
SARA FISCHER, CNN SENIOR MEDIA ANALYST: He'll definitely have Donald Trump's ear. TODD (voice-over): Trump has said Musk will be an influential voice in
his government, tasked with downsizing the government by $2 trillion a year.
Why would Trump tap Musk?
TRUMP: You, you're the greatest cutter. They go on strike, and you say, that's OK, you're all gone.
TODD (voice-over): Musk posted a meme showing himself in the Oval Office with the words, let that sink in. But Trump says Musk won't be a cabinet secretary.
TRUMP: I mean, I'd love to have him, to be honest with you, but he doesn't want to.
TODD (voice-over): One possible obstacle.
UNIDENTIFIED MALE: Two clear conflicts of interest. He receives massive amounts of federal contracts from the federal government.
TODD (voice-over): Musk's companies, primarily SpaceX, had $3 billion in government contracts last year, according to a tally by "The New York Times."
Could Musk's profits grow, thanks to his ties to Trump?
FISCHER: For Elon Musk, there are some very obvious policy benefits if he can get in with the administration.
TODD (voice-over): Musk's platform X could also benefit as a major hub of MAGA online, and Tesla saw its stock price jump almost 15 percent after Trump's win, even though it has barely any contracts with the government.
The two fellow billionaires have similar views on immigration, deregulation, free speech, gun rights, and conspiracy theories. But --
FISCHER: Donald Trump and Elon Musk both have track records of having very close relationships turn sour very quickly. If for some reason, one delivers on the relationship more than the other, or one thinks that they're not getting as much of it out of the other, that's when I can see the egos clashing.
TODD: Elon Musk said during a livestream on X that his PAC would keep going beyond this election and would weigh in, quote, "heavily" on future elections.
As the world's richest man, Musk certainly has the means to back that up.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
CHURCH: And thanks for watching CNN NEWSROOM. I'm Rosemary Church. I'll be back with more news in just a moment. Do
stay with us.
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