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Trump Touts Progress On Peace Plan After Zelenskyy Meeting; Trump, Netanyahu To Discuss Next Phase Of Gaza Plan; One Dead After Mid-Air Helicopter Collision In New Jersey; Dangerous Blizzard Conditions Snarl Travel In U.S.; Polls Close In Myanmar As Military Holds First Election Since 2021 Coup; Trump, Zelenskyy Cite Progression Peace Deal after Meeting; Bulgaria to Introduce Euro on January 1; Historic Holiday Spending Tops $1T for First Time Ever; "Avatar: Fire & Ash", "Zootopia 2" Draw in Holiday Crowds; More Americans Buying Homes in Idyllic Cotswolds Region. Aired 1-2a ET

Aired December 29, 2025 - 01:00   ET

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

(COMMERCIAL BREAK)

[01:00:31]

POLO SANDOVAL, CNN CORRESPONDENT: Hey everyone. Polo Sandoval, live in Atlanta. To all of our viewers around the world, welcome to CNN Newsroom. And here's what's coming your way.

There's fresh optimism after a meeting to discuss ending the war in Ukraine, but the same questions over land concessions and security guarantees remain.

President Trump, he is set to discuss the next phase of the Gaza peace process with Israel's prime minister.

And we'll visit England's Cotswolds, a region of stone cottages and rolling hills that's attracting Americans looking to start a new and pretty life.

UNIDENTIFIED MALE: Live from Atlanta, this is CNN Newsroom with Polo Sandoval.

SANDOVAL: We begin with U.S. President Donald Trump as he describes his meeting with Ukrainian President Volodymyr Zelenskyy as excellent. This after the two leaders held talks at Mar-a-Lago on efforts to end Russia's war on Ukraine.

While both cited progress, no breakthrough was reached as several key issues remain. Mr. Zelenskyy said the teams from the U.S. and Ukraine could meet as early as next week to work out the remaining points of the peace plan. And President Trump plans to speak again with Russian President Vladimir Putin.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: We discussed a lot of things. As you know, I had an excellent phone call with President Putin that lasted for over two hours. We discussed a lot of points and I do think we're getting a lot closer, maybe very close.

(END VIDEO CLIP)

SANDOVAL: The Ukrainian leader is also expressing optimism that they pretty much laid out what was covered during -- actually, I want you to listen as the Ukrainian leader laid out what was covered during Sunday's meeting.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: We discussed all the aspects of the peace framework which includes and we have a great achievements 20-point peace plan 90 percent agreed and U.S.-Ukraine security guarantees 100 percent agreed. U.S., Europe, Ukraine security guarantees almost agreed, military dimension 100 percent agreed, prosperity plan being finalized. And we also discussed the sequencing of the following actions and we agree that security guarantees is a key milestone in achieving lasting peace.

(END VIDEO CLIP)

SANDOVAL: But President Zelenskyy is also underscoring that the question of Ukrainian territory remains a difficult factor amid these negotiations. And President Trump also acknowledging the fates of the eastern Donbas region, which Russia has demanded Ukraine surrender, that remains an outstanding issue. CNN's Frederik Pleitgen has more from Berlin.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: After meeting Ukraine's President Volodymyr Zelenskyy in Florida, U.S. president Donald Trump sounding fairly optimistic about the prospects of a peace deal between Ukraine and Russia to end the war that has been going on in that region.

President Trump, however, cautioning that there are still thorny issues on the table and of course, at any point in time things could fall apart.

Now as far as those issues are concerned, both President Trump and Volodymyr Zelenskyy spoke about those issues, one of them, of course, being potential land concessions by the Ukrainians towards Russia. That's something where in the past the Ukrainians have unequivocally said they don't want to cede land to the Russians.

But in the past couple of days, Ukraine's President Volodymyr Zelenskyy seems to be indicating that maybe it was a possibility. There's one area in the Donetsk oblast in eastern Ukraine that the Ukrainians hold but the Russians want, and the U.S. is now speaking about that area potentially becoming what the U.S. calls a free economic zone. But it's unclear if that's something that can actually be brought across the finish line.

As far as the Ukrainians are concern, they say that any of those issues, especially ceding territory, would require a referendum. That's also something that Volodymyr Zelenskyy said in a press conference with U.S. President Donald Trump. The Ukrainians have been saying that they need time and a ceasefire to be able to prepare a referendum like that.

However, in a call with U.S. President Donald Trump, the Russians say that Vladimir Putin said the Russians are unequivocally against having a ceasefire. They believe that is something that the Ukrainians could use to regroup.

So a lot of thorny issues still at the table. Nevertheless, Ukraine's president says he believes that more than 90 percent of the points that are difficult have already been dealt with. Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

[01:05:03]

SANDOVAL: Joining me now from Los Angeles is Benjamin Radd. He's a political scientist and senior fellow at the UCLA Burkle Center for International Relations. Benjamin, it's great to see you again.

BENJAMIN RADD, SENIOR FELLOW, UCLA BURKLE CENTER FOR INTERNATIONAL RELATIONS: Thank you.

SANDOVAL: So let's start by getting your assessment. Based on what you saw, based on what you heard from the two leaders on Sunday, did you see any progress at all in efforts to end the war?

RADD: To be candid, I did not see progress. What -- what I also didn't see was anything that indicated that negotiations were failing or that we're moving backwards in the scope of the talks. But nothing groundbreaking was revealed, nothing indicating that serious movement has been made on the contentious issues, and notably nothing indicating any pressure or efforts to really lean on Vladimir Putin to come along with where the United States and Ukraine seem to be on the latest rounds of negotiations.

SANDOVAL: Thorny and tough issues remain. Those are the words from the U.S. President that tells us basically that there's currently no agreement yet when it comes to land concessions. What options do you think exist for Ukraine if Putin refuses to compromise on that front?

RADD: Well, so long as Ukraine can continue to receive material support, military support and funding from the west, specifically from the Europeans, to continue waging the conflict, they can stay in this fight. But the concern is can they hold on to the land that they are barely holding on to now, specifically the portion of the Donetsk region that they are holding on to.

The concern is that's going to be harder, especially as winter drags on and the Russian forces are attacking Ukrainian power centers and really affecting the nation's ability to heat and provide power for its citizens.

So these all become challenges in sustaining that. And the Russians have demonstrated that they're able to replenish their military, their soldiers as effectively dying, and they're able to -- to get more conscripts.

So this is going to make it difficult for Zelenskyy to really keep the line unless he's receiving enough support from the Europeans.

SANDOVAL: And then, of course, there is the Putin factor. Like the Americans, the Ukrainians, the Europeans, they can all get on the same page. But it doesn't work if the Kremlin is not on board. And Russia, as you know, they have not backed off its maximalist demands, including the surrender of the entire eastern Donbas region, which we just discussed a little while ago.

Are there any possible small victories, you think that Ukraine stands at least a higher chance of securing?

RADD: I think at this point maybe the release of prisoners, those that have been detained by The Russians possibly a pause in the fighting that would really allow Ukrainians to endure a harsh winter and a chance to basically reconstitute their supplies. The Russia doesn't want to see that, but really sort of a humanitarian gesture at demonstrating goodwill on the parts of the Russians.

I think that is a realistic goal and I think maybe that is where the bar should be set, is to basically give a humanitarian pause of the fighting while these other finer points are being negotiated.

SANDOVAL: And in terms of securing rock solid security guarantees for Ukraine, do you think that's perhaps unrealistic at this point?

RADD: Well, yes, if the Ukrainians are insisting that there be a European presence or a firm security guarantee, that's going to be difficult. The Russians have indicated there they will not allow European soldiers to be placed on Ukrainian territory. And again, this idea of a U.S. security guarantee, something that has to pass the Senate if and when it does come up for a vote, what does it look like? Does it essentially mean that there'll be U.S. military or personnel stationed there?

That's going to be a cause of concern for the Russians. They've not even indicated support for anything along those lines. So again, details are vague and that's what makes it so, so challenging.

SANDOVAL: And then there's also taking any mechanics of an agreement to voters in Ukraine. If President Zelenskyy does put any possible peace agreement up for a vote in the form of a referendum, what kind of response do you think he's likely to get from voters? Would they sign on?

RADD: Yes -- yes, that's a great question. A lot of that will determine how it's framed. If any of this comes off as a retreat or surrender, especially of territory in the Donetsk that Ukraine still holds. But the Russia is demanding be relinquished or turned into a neutral zone. That's going to be difficult because I think the Ukrainian people, having endured almost three years of horrific conflict, are not necessarily ready to see it end on the basis of surrender, giving up territory that they have not lost.

And so I think whether or not that's included and how that part is framed will be crucial in any referendum.

SANDOVAL: As always, Benjamin Radd, grateful for your perspective. Thank you.

RADD: Thank you.

SANDOVAL: President Trump and the Israeli Prime Minister, they're expected to discuss the next phase of the Gaza ceasefire plan in the coming hours. Benjamin Netanyahu, you see his plan here arriving in West Palm Beach, Florida on Sunday ahead of Monday's meeting at Trump's Mar-a-Lago resort.

[01:10:06]

On the agenda, the disarmament of Hamas, rebuilding Gaza, the establishment of post war governance of the enclave and the creation of a Board of Peace that's supposed to be led by President Trump. He's been urging both Israel and Hamas to work towards phase two of his peace plan, but both sides continue to accuse each other of violating the deal.

Earlier, CNN spoke with former State Department Middle East negotiator Aaron David Miller about what's at stake during Monday's meeting.

(BEGIN VIDEO CLIP)

AARON DAVID MILLER, FORMER MIDDLE EAST NEGOTIATOR, U.S. DEPARTMENT OF STATE: I don't think, I think both of these guys don't trust one another. I'm not even sure they like one another, but the reality is they need one another.

Trump needs Netanyahu to avoid his much touted 28-point plan gossip from cratering and Netanyahu desperately needs the Prime Minister -- the President of the United States in order to manage growing call for his resignation and the prospects in 2026 of an election to which he'd like to become prime minister again.

And Trump is more popular in Israel than Netanyahu. So again, mutual need creates a certain amount of dependency. This may not be a great meeting, but it's not going to crater may push the ball forward a tad on Gaza.

(END VIDEO CLIP)

SANDOVAL: U.S. Transportation officials they're investigating a deadly midair collision between two helicopters. It happened on Sunday morning in southern New Jersey. The pilot of one chopper died shortly after the crash. The other pilot was injured. Here's Rafael Romo with the report.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT: The helicopters came down in a field in Hamilton, New Jersey and both pilots were airlifted to a trauma center. This is according to Hamilton Fire Department Chief Sean Macri, who confirmed to CNN that one person died while the condition of the other one was unconfirmed.

Hamilton, located in Atlantic County, is about 35 miles from Philadelphia and sits in near the New Jersey Pine Barrens, a vast area of forested wilderness. According to the Federal Aviation Administration, the crash happened around 11:25 in the morning Eastern Time. The two helicopters collided in midair near Hamilton Municipal Airport in New Jersey, the FAA said in a statement.

Officials also say that only the pilots were on board each helicopter. Both the Federal Aviation Administration and the National Transportation Safety Board will investigate the accident, but the NTSB will be in charge.

The FAA described the aircraft as an Enstrom F-28A helicopter and an Enstrom 280C helicopter, according to the information on the FAA database obtained using both helicopters tail numbers. The aircraft are older, probably built in the 1970s. One has a private owner listed and the other is listed to a charter company.

Fire Chief Macri described the crash scene as a pile of mangled metal that was on fire. That's all it looked like, he said. It was hard to even tell it was a helicopter. New Jersey Senator Cory Booker reacted to the news on Facebook, calling the fatal helicopter crash over South Jersey horrifying and tragic. My heart is with those impacted and their families, Booker said, adding that his office is in contact with the NTSB and requesting more information about the details of this tragedy.

In a later post on Facebook by the Hamilton Fire Department, officials said that there are AI generated images and photos and videos from prior incidents circulating on social media that are being falsely depicted as coming from this incident. These images and videos are not from the scene. We also asked community members to think before sharing content, the fire department said. And this is a tragic incident and an ongoing investigation. Rafael Romo, CNN, Atlanta.

(END VIDEOTAPE)

SANDOVAL: More than 30 million people in the United States are under winter weather alerts across parts of the Midwest and Northeast. Winter storms, they are disrupting flights and causing treacherous driving conditions during what is really one of the busiest travel weeks of the year.

More than 9,000 flights were delayed on Sunday alone, with 700 cancellations nationwide, and that's according to tracking site FlightAware. Blizzard warnings are in effect for at least 2 million people in the Midwest, with heavy snow and wind gusts of up to 60 miles an hour creating whiteout conditions and knocking out power.

If you don't believe me, just look at some of these pictures, some of this video here out of Iowa, where State Patrol officers could barely see out the windshield while responding to a 14-vehicle pileup on Interstate 35.

And in Illinois, severe thunderstorms there, as well as tornadoes causing widespread damage on Sunday. You see some of the roofs that were torn off homes and debris littering the streets as emergency crews and residents surveyed the aftermath. The storms have been fueled by some drastic temperature changes, with a cold front pushing out the unseasonably warm air that we've seen throughout much of the central and southern U.S. over the past week.

[01:15:05]

Myanmar just wrapped up the first phase of voting in parliamentary elections. But critics say that the vote will not bring the country any closer to democratic rule. We'll find out why.

Also, U.S. holiday spending reportedly topping $1 trillion for the first time this year. It sounds great, right? Well, later this year we'll break down. I'm sorry. Later this hour, we're going to break down that figure and discover the truth behind the number. You're watching CNN Newsroom.

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SANDOVAL: The first round of Myanmar's controversial election it is over the next two rounds. Those are expected to take place in January. The country's military junta seized power from the elected government nearly five years ago.

The group's leaders say that the vote will restore democratic rule, but critics and human rights groups say that is highly unlikely. Entire sections of the country will not get to vote because of the civil war that's been sparked by the coup. CNN's Ivan Watson reports on the very latest from Yangon, Myanmar.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): At polling stations across Myanmar's largest city, this song played on a constant loop, anthem urging citizens to vote.

Myanmar's military is holding an election in the midst of a brutal civil war. The conflict triggered nearly five years ago when the military staged a couple overthrowing an elected government and violently crushing subsequent protests.

[01:20:00]

This voter told me he hopes the election would help Myanmar chart a way out of its difficult situation.

My family live in the countryside where it's not safe, he says. I want the fighting to stop and wish for peace.

The situation in this Southeast Asian country is dire. The U.N. predicts more than 12 million people will suffer from acute hunger in 2026, with some 4 million people displaced by the war. Meanwhile, the U.N. Special Rapporteur for human rights calls the

election a sham.

TOM ANDREWS, U.N. SPECIAL RAPPORTEUR FOR HUMAN RIGHTS IN MYANMAR: There has been an escalation of the use of sophisticated weapons of war, helicopter gunships, jet fighters attacking civilian targets in the run up to this election.

If the junta is successful in getting the international community to in any way recognize this as legitimate, then it will be able to entrench its brutality and things in Myanmar are going to get much, much worse.

WATSON (voice-over): The military government concedes it can't hold the election in large parts of the country now controlled by armed opposition groups.

WATSON: Is it difficult to have an election when there's a civil war?

WATSON (voice-over): In Yangon, it's safe, says Myo Thein. No problem, no problem. He's running for office with the military aligned Union Solidarity and Development Party.

WATSON: You lost in the last two elections.

MYO THEIN:, SPOKERSPERSON AND CANDIDATE, USDP: Yes.

WATSON: Do you think you have a better chance in this election?

WATSON (voice-over): He has reason for optimism. The party whose candidates beat him twice can't compete in this election.

WATSON: These are the offices of the National League for Democracy, or NLD Party. Now it won exclusively in national elections that were held in 2015 and 2020. But since the coup, many of its leaders have been arrested and thrown in jail.

WATSON (voice-over): The U.K. and European Union say this election is neither free nor fair. But a Myanmar military government spokesman calls their criticism irrelevant.

The junta trying to generate excitement for this controversial process. Two more phases of the election are scheduled to take place in other parts of the country next month. Ivan Watson, CNN, Yangon.

(END VIDEOTAPE)

SANDOVAL: U.S. President Donald Trump wraps up face to face talks with Ukraine's Volodymyr Zelenskyy. Still ahead, an update on progress towards ending Russia's war and the key sticking points that still remain.

(COMMERCIAL BREAK)

[01:26:00] SANDOVAL: And welcome back. I'm Polo Sandoval in Atlanta. And you're watching CNN Newsroom. Still no breakthrough after more than three hours of talks between the Ukrainian and U.S. Presidents at Mar-a- Lago. U.S. President Donald Trump says that they could be, as he put it, very close to a peace deal to stop Russia's war in Ukraine. CNN's Reid Binion has the latest.

(BEGIN VIDEOTAPE)

TRUMP: We had a terrific meeting.

REID BINION, CNN CORRESPONDENT (voice-over): President Donald Trump meeting with Ukrainian President Volodymyr Zelenskyy in Florida for high stakes peace talks to develop a plan to end Russia's war in Ukraine.

TRUMP: And I do think we're getting a lot closer, maybe very close.

ZELENSKYY: We had a really great discussions on all the topics and we appreciate the progress that was made.

BINION (voice-over): The goal of the meeting to close gaps in the original 28-point peace plan Trump first proposed last month and which Ukraine has since revised to 20 points.

TRUMP: There are one or two very thorny issues, very tough issues, but I think we're doing very well.

BINION (voice-over): Any potential deal would need buy in from Russian President Vladimir Putin, who spoke with Trump by phone ahead of Zelenskyy's visit. Trump described the call as, quote, very productive.

Trump's meeting with Zelenskyy came on the heels of a massive, deadly weakened attack on Ukraine by Russia. Moscow launching the year's longest sustained assault on the capital city, Kyiv, killing at least two people and leaving many without residential heating amid freezing temperatures. Zelenskyy said the latest Russian attacks, quote, really showed Putin doesn't want peace.

In addition to the call with Putin before the meeting, Trump planned to speak with the Russian leader again after the talks.

TRUMP: I'm also calling President Putin back after the meeting.

BINION (voice-over): I'm Reid Binion reporting.

(END VIDEOTAPE)

SANDOVAL: And joining me now on President Trump's push for peace is CNN's senior political analyst Ron Brownstein joining us. Ron, it's good to have you with us again.

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Good evening.

SANDOVAL: So let's dive right in here, Ron, what is your assessment of the latest Trump-Zelenskyy meeting? I'm sure you were listening. I was listening.

BROWNSTEIN: Yes.

SANDOVAL: I didn't hear any direct pressure from President Trump on Putin to move things along.

BROWNSTEIN: Yes, I think that's really the key point. Right. I mean, you know, President Trump's posture toward his level of engagement with the war and certainly his behavior towards Zelenskyy and Ukraine has been variable or erratic, depending on how you want to put it all year.

But the most consistent through line in the way he's approached this is what you suggest is that he has been unwilling to really put pressure on Putin to end the war. He's tried to entice him toward ending the war by talking about, you know, economic benefits and a more robust economic relationship that could follow the end of hostilities, but he hasn't been willing to pressure him.

And I think, you know, a lot of people are skeptical that Putin will accept any significant step toward ending the war so long as he feels that continuing the hostilities are in his benefit. And to this point, President Trump, and again, you saw today, is very complimentary comments about Putin, even in the aftermath of this attack on Kyiv, has been unwilling to put the kind of pressure that might change his calculus.

BROWNSTEIN: Ron, how motivated do you see President Trump when it comes to continuing negotiating peace in Ukraine? I mean, should he perhaps have some renewed focus on the more domestic issues like affordability, especially ahead of midterms?

BROWNSTEIN: Well, as I said, I mean, I think his interest in engaging in this has really kind of oscillated up and down all year. You know, he, during the campaign, he said he could end it on day one. He has insisted throughout that it never would have happened if he was president. I think there's very little evidence of that.

[01:29:48]

So I don't think he can completely walk away from it.

You know, the midterm elections are going to be decided overwhelmingly by domestic issues, and particularly for swing voters Affordability is right at the top of the list of what they are concerned about.

But, you know, this is a problem that he has claimed that he can solve and said that he would solve on Day One. And I just don't see with all of that trailing behind him how he can -- how he can plausibly walk away and just kind of wash his hands of it.

POLO SANDOVAL, CNN ANCHOR: It's already 1:30 a.m. in Washington on Monday. We're going to be watching closely for that meeting that's expected to happen with Netanyahu and the president.

How do you think the U.S. president will respond to the Israeli prime minister's apparent reluctance to enter the next phase of the Gaza ceasefire? Do you think President Trump's patience may be wearing thin with the prime minister?

BROWNSTEIN: Well, look. Yes, you know, it's funny. It may be the word "erratic" applies to all of Trump's relationships, but certainly he has had his ups and downs with Netanyahu as well.

On the one hand, I think over the last year he has given him more rope militarily than even the Biden administration, which was hardly tugging on the reins very tightly.

On the other, you know, their personal relationships have been prickly going back to his first term and points where Trump felt that Netanyahu was not giving him sufficient credit.

It's pretty clear that their interests are diverging as you move toward stage two, the broadly-defined stage two of the Trump administration peace plan. And Netanyahu is not really interested in advancing any of the steps that would be required to either establish some of the international institutions needed to rebuild Gaza or to convince other Arab nations that he is serious about any kind of autonomy for the area, or involving the Palestinian authority.

So there is a divergence of interest. And, you know, at times, again, I mean, in the same way that we talked about Ukraine and Zelenskyy, Trump's posture towards Netanyahu has gone up and gone down. I suspect tomorrow may be a little more on the prickly side, given where the two sides are at this point.

SANDOVAL: Also, just a symbolism that we've seen for the last couple of days with these two world leaders. You have President Zelenskyy and then, of course, now Benjamin Netanyahu traveling not to Washington, but to Florida, where the president is spending his holiday.

I mean, just what message does that send do you think that the president could be sending about the U.S. involvement in bringing these conflicts to a close and to a peaceful resolution?

BROWNSTEIN: Its more about what is the lever to U.S. involvement? I mean, it is almost -- so many things about the Trump administration are more about personalizing the power in him rather than the kind of the institutions that, you know, traditionally have served American democracy, both at home and its role in the world.

And it's almost like they are, you know, they are journeying to the rural, the castle of the leader. And it just kind of underscores how personal really countries around the world have accepted that there is now this kind of personal fealty or, you know, tribute you must pay either literally or figuratively by going down there to the leader in order to keep him engaged and maybe in control, you know, on the issues affecting your country.

I mean, what we saw -- we saw foreign visitors give him a gold, you know, Rolex watch and in other ways just kind of pay homage to him. And I think leaders around the world have basically accepted that as the price of keeping him on the rails and keeping the U.S. and their relationship with the U.S. on the rails.

SANDOVAL: And as we learned in February, we know what can happen if they don't approach it that way --

BROWNSTEIN: Yes.

SANDOVAL: With the meeting between Zelenskyy and President Trump back in February.

Again, Ron Brownstein, thank you so much for helping us better understand everything that's going on. I always look forward to your analysis.

BROWNSTEIN: Thanks for having me.

SANDOVAL: So China's military says that it has launched war games around Taiwan in a, quote, "serious warning against the island's push for independence". China's eastern theater command said that the military drills, called the "Just Mission 2025" will also involve live fire exercises.

Beijing has significantly escalated Taiwan encirclement drills in recent years. And these drills follow a landmark multibillion dollar arms deal between Taiwan and the United States.

Taiwan condemned the drills, accusing China of, quote, military intimidation.

Still ahead here on CNN NEWSROOM, Bulgaria getting ready to usher in the New Year and a new currency. We'll look at the changes to expect as the country adopts the euro.

[01:34:35]

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SANDOVAL: Syria plans to kick off the New Year by introducing a new national currency. It's expected to replace the former Assad regime's banknotes in a bid to strengthen the Syrian pound. Reports say that the updated notes removed two zeroes from the currency. Some bankers are fearing that that could undermine efforts to tame inflation.

The exchange period is expected to last about 90 days, during which both currencies will be recognized as legal tender.

And big changes are also coming to the economy in Bulgaria, which will be transitioning to the euro at the start of the New Year. The E.U. calls it a historic milestone that will offer new opportunities for people and businesses.

And this comes just two weeks after the Bulgarian government resigned amid widespread protests over alleged corruption in the state of the economy.

Here's CNNs Lynda Kinkade with more on what the euro has to offer.

(BEGIN VIDEOTAPE)

LYNDA KINKADE, CNN CORRESPONDENT: Dual pricing at a Bulgarian grocery store. The cost of goods displayed in both the outgoing Bulgarian currency, the lev, and euros, a soft launch of what customers can expect to pay on January 1st when Bulgaria adopts the euro as its official currency.

It's taken many years for Bulgaria to meet the economic criteria to join the euro. After becoming a member of the European Union back in 2007.

And now that the time has come for the switch, Bulgarians are divided on how it will affect them. Some people say it will be good to integrate more with other E.U. countries.

VESELINA APOSTOVLOVA, PENSIONER (through translator): Because in the entire E.U. the euro can be used. Not only older people but also young people can easily travel using euros instead of having to exchange currency.

KINKADE: But a recent poll says that about half the country, which is one of the poorest nations in the E.U. is skeptical, fearing the change would drive up prices.

EMIL IVANOV, PENSIONER (through translator): I am against it. First because the lev is our national currency. Secondly, Europe is heading towards demise, which even the American president mentioned in the new national security strategy.

[01:39:53]

KINKADE: Euro starter coin kits are now being circulated. Analysts say there may be some confusion, especially amongst the elderly, as people use the new banknotes and coins.

But some processes will be automatic. Lev bank accounts will be converted into euros on the first of the year. A necessary adjustment period, according to some economists.

STEFAN LUKOV, EOCNOMIST (through translator): First and foremost, it will further integrate our economy and in the end, at least, our central bank will become a full member of the European central bank family and will have the right to participate in decision making.

KINKADE: But the transition comes at a time of political turmoil in the country. The prime minister resigned in December after less than a year in office, following weeks of mass protests against corruption and a controversial 2020 big budget proposal, which means Bulgaria's entry into the Eurozone will be happening as the country tries to form a new government.

That's a lot of change in the New Year. But one thing is certain, as of January 1st, there will be a period of one month where there will be dual circulation of both the lev and the euro for payments, and after that, the euro will be Bulgaria's sole legal tender. And the lev part of the country's past. Lynda Kinkade, CNN.

(END VIDEOTAPE)

SANDOVAL: 2026 just days away, and New Yorkers, they are ready to leave some things behind in 2025. The Times Square Lions they put on a good riddance day celebration on Sunday. People there sharing some of their worst moments of the year with actor Jonathan Bennett and looked forward to what they want to bring in the New Year.

(BEGIN VIDEO CLIP)

JONATHAN BENNETT, ACTOR: Tom, I have to know what are you saying goodbye to and closing the curtain on in 2025.

TOM: I am closing the curtain on negativity in 2025. I want us to focus on what unites us and not what divides us.

(END VIDEO CLIP)

SANDOVAL: Hear, hear. Good riddance to negativity.

I'll join you once again in a few moments if you're watching us in the United States. For our international viewers, stay tuned for "WORLDSPORT".

[01:41:54]

(COMMERCIAL BREAK)

SANDOVAL: Welcome back to CNN NEWSROOM.

President Trump is touting the impact of his policies on the U.S. economy. In a social media post, he said tariffs helped boost U.S. Gross Domestic Product and also lowered the trade deficit.

The president also said that there is no inflation. New numbers released last week showing third quarter GDP, with the fastest growth in two years rising to 4.3 percent. And the U.S. trade deficit has narrowly at least -- it's narrowed significantly. But inflation that stands at 2.7 percent.

So headlines say that holiday shopping topped $1 trillion for the first time this year. But there seems to be something that those numbers may not necessarily be reflecting.

Joining us now is consumer spending analyst Hitha Herzog, who is also chief research officer at H Squared Research. Hitha, it's great to have you.

HITHA HERZOG, CHIEF RESEARCH OFFICER, H SQUARED RESEARCH. Thanks for having me.

SANDOVAL: So, so despite those economic headwinds, Hitha, at what levels did you see holiday consumer spending this year? And do you think that that number will shrink? HERZOG: You know it's interesting. The National Retail Federation was

reporting close to $1 trillion, if not more spend that consumers will be doing over the holiday season, as you said.

But what they are not taking into consideration are the returns that are going to be happening this week and into January, to the tune of $850 billion. That's almost 16 percent of what was spent.

So when you factor in those numbers, yes, $1 trillion sounds incredible. But when you have all those returns, something is going to be off.

And what I am seeing is that the spend really is being driven by higher income consumers. So if you look at the -- at the income rate, that grew about 2.6 percent for higher income, for lower income, it grew about 0.6 percent.

That's not saying that lower income consumers weren't spending, but they were just spending at a more specific rate. They were going to discount stores. They were making choices that maybe are not, so on the spur of the moment.

Whereas the higher income consumer was spending a ton paying that on their credit cards and then paying that off month to month.

SANDOVAL: Fascinating. So let's get back on the returns side of this all. I mean, doesn't that -- well, first off, why --is there any indication of why you're seeing consumers essentially return, what, some 15 percent of the goods that they purchased and then doesn't that eventually cost the retailer? I mean, they have to have it shipped back. They have to restock.

HERZOG: Yes. No, absolutely.

What really happened was during the pandemic, as you remember, most of us were on lockdown, but we all needed our stuff. So we got very used to getting all of our things delivered in real time, right.

Logistics got faster. Things like -- stores like Amazon got things to us in two hours or less. And as consumers, we got used to that.

We also got used to this thing called bracketing, which a lot of people will just buy a bunch of sizes, have it delivered to them, their homes, try them on and then send it back.

What they don't realize is that every time you return something, it costs the retailer somewhere between $10 and $20. When you start adding that up that really bites into the bottom line of retailers. So we're seeing about a 16 percent of online purchases being sent back or returns in general being sent back for holiday purchases.

But overall, Polo, annually, retailers see about 40 percent of online purchases being sent back. That's billions of dollars of returns coming back to the retailer, and they can't process that. So what they're starting to do is charge people for those returns to have those sent back. SANDOVAL: And obviously, this was the first holiday shopping season

under the second Trump administration with all of the presidents talks on tariffs. Did you see that perhaps affect consumer confidence this holiday season

HERZOG: Oh yes. We -- according to the Afterpay cash app study, the holiday spending data study, a lot of consumers really felt stressed going into the holiday, about 38 percent of them.

With that said, consumers were spending about on average of $1,000 per purchase, right. This is for, you know, gifts, et cetera, for the home. But what was interesting is that because of the inflation rate that purchase wasn't -- it cost more, but it wasn't that people were getting more.

[01:49:53]

SANDOVAL: And finally, did you see -- you talked a little bit about, the way they changed their spending trends. Did you also see perhaps a change in where people were spending their money? What kind of retailers, perhaps less of the big box retailers, more of the local businesses, perhaps somewhere else.

HERZOG: Yes. Walmart really had a boom this holiday season. I think it really -- people wanted to get the best value, right. You have these headwinds of inflation, tariff flip-flopping. So they went to stores that they knew that they were getting the best value.

So Walmart, TJ Maxx, off-price retailers. Those are the retailers that really saw a lot of benefit from this holiday season's consumer spending.

Also, the luxury retailers. Again we were talking about the price agnostic higher income consumer. Those were the ones that were essentially pushing the economy forward with their luxury spending and purchasing in general.

But off-price retailers, discount retailers were the ones that were really seeing the benefit. And then middle -- middle retailers that we're seeing now, there's a dearth of retailers that are closing their stores. They were the ones that really took a took a hit.

And what we're essentially seeing is a tale of two consumers. That bifurcation that has been going on for essentially years now is really seeing -- is really coming to prominence now.

SANDOVAL: Hitha Herzog, really appreciate that dose of reality for millions of consumers and retailers throughout the country. Appreciate your expertise. Thank you.

HERZOG: Thanks, Polo.

SANDOVAL: And Americans were spending on gifts, but also at the movies. You see this weekend after Christmas, it's always huge at the box office. And this year was certainly no exception because there was something for everybody. Everything from a little bit of science fiction. There was also some animation, plenty of comedy, and much, much more.

Let's go now to CNN's David Daniel with those early estimates.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We're in the middle of the jungle and we are being hunted. Now we die.

DAVID DANIEL, CNN CORRESPONDENT: "Anaconda" began its run in fifth place, earning $14.6 million.

AMANDA SEYFRIED, ACTRESS: Millie is going to be living with us.

BRANDON SKLENAR, ACTOR: You're going to live with us.

SEYFRIED: Andrew, I told you.

DANIEL: "The Housemaid" dropped a spot to fourth place on $15.4 million in ticket sales.

UNIDENTIFIED MALE: I don't think you understand the stakes here.

UNIDENTIFIED MALE: You find that funny? I get nervous laughter sometimes.

DANIEL: "Marty Supreme" took third place with $17.5 million.

UNIDENTIFIED MALE: There's a snake.

UNIDENTIFIED FEMALE: Stop in the name of the law.

DANIEL: "Zootopia 2" rose to second place, grabbing $20 million for a domestic total of $321 million.

"Avatar: Fire and Ash" kept the crown, adding $64 million for a ten- day domestic total of $218 million.

In Hollywood, I'm David Daniel.

(END VIDEOTAPE)

SANDOVAL: From a-list stars to wealthy buyers looking for a fresh start, more and more Americans, they are calling Britain's idyllic Cotswolds region their home.

Anna Cooban went there to see what it's all about.

(BEGIN VIDEOTAPE)

ANNA COOBAN, CNN BUSINESS REPORTER: I'm here in the Cotswolds. It's a region in the west of England and it is a quintessential slice of English country life. And despite the really gray, drizzly weather here today, this part of the world has become a big draw for Americans, buying properties and starting new lives here.

So I've turned up to find out why. DEBRA DREW, COTSWOLDS RESIDENT: I think the Americans have quite a

romantic notion about the Cotswolds because of the honey-colored stone and the cottages. I think they think everyone in England lives in a stone cottage.

COOBAN: They think it's all like this.

DREW: Yes. And it's always sunny.

COOBAN: And tell me there's this trend of more and more Americans moving to the Cotswolds recently. Is this something you've noticed?

DREW: Oh my gosh, yes. It's in the press here every day. I think the -- I think the Brits are quite interested in the fleeing Americans.

COOBAN: The Cotswolds is a protected area of natural beauty. It's about 100 miles west of London. Hop on a train and you're there in a couple of hours. That proximity combined, of course, with those famous rolling hills, makes it a magnet for lots of famous people.

For centuries, the region was at the center of Britain's wool trade. Today, it is sprinkled with many well-known names.

Kate Moss has had a place there since the early 2000. Here's David Beckham digging up vegetables on his Cotswolds estate.

But in 2024, U.S. comedian Ellen DeGeneres really helped put the region on the map for Americans when she moved there with wife Portia de Rossi.

[01:54:46]

HARRY GLADWIN, BUYING AGENT, THE BUYING SOLUTION: Over the last 12, 18 months, we've seen about 30 percent increase in the number of Americans registering with us, wanting help with their purchases.

But it's not a cheap part of the world to buy in. There is a premium because it's an incredibly popular location. Really, you could look at anything from a smaller cottage for around 1 million pounds through to sky's the limit.

COOBAN: Hi there.

UNIDENTIFIED FEMALE: Hello. How are you?

COOBAN: I'm well. How are you?

LAUREN NEELY, COTSWOLDS RESIDENT: Very well. Thank you so much.

It's been a 15-year dream in the making. My husband and I fell in love with the U.K. way of life. We love the weather. We loved the architecture, the history, even the food. It looks quite a bit like home. I'm from Pennsylvania, so it's not that different as far as rolling, gentle hills, fertile land.

COOBAN: The Cotswolds has quite a reputation in the U.K. for being very well-to-do. Has that been what you've experienced? How does the reality compare with the impression?

NEELY: I think the impression is correct. These homes are much bigger than they look from the lanes and they're very private.

That being said, well-to-do means the people have wonderful etiquette. They're very inclusive, they have wonderful manners.

Yes, everyone's just been so friendly and so gracious. Everyone's very down to earth. They have a dog, they take walks, they come to the local pub. They're just people.

Painswick (ph) feels like I went to bed and woke up in the middle of a Christmas Hallmark movie. The stone walls and the architecture. It just feels like comfort in a time when the world needs more of that. So we moved here in May and it's been a dream.

COOBAN: You know, I think I understand what all the fuss is about now.

Anna Cooban, CNN -- the Cotswolds.

(END VIDEOTAPE)

SANDOVAL: And while some Americans are out searching for their pricey cottage, the Olympic torch is making its way across Italy before next year's Winter Games. The 21st leg of the relay that took the torch to the city of Potenza, which is in the mountains just east of Naples, you see, with the police escort.

The 2026 Winter Olympics. They are scheduled to begin in Milan on February the 6th.

And with that, we want to thank you so much for joining us, the last hour of NEWSROOM.

I'm Polo Sandoval in Atlanta.

The news continues with my colleague Rosemary Church after a short break.

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