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Connect the World
US President Begins Visit to India; US and India Strengthen Ties; Netanyahu Defends US Visit; Parting Shots: King Tut's Close Shave; Oil Concerns Dominate Davos; OPEC Won't Cut Production; Shale Oil Changes Market; Greece Votes; At Least 14 Protesters Dead In Egyptian Demonstrations; One Japanese Captive Killed By ISIS, Another Threatened
Aired January 25, 2015 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BECKY ANDERSON, CNN INTERNATIONAL HOST: Promising an end to austerity. Could this man be the next prime minister in Greece?
Tonight we are live in Athens where a surge is in support for a left-wing party could shape the future of the EuroZone.
Also ahead, ISIS says it killed one Japanese hostage and threatens to kill another if it doesn't get what it demands. We'll look at the woman the
group wants to be released from prison.
And protests turn violent in Egypt as the country marks four years since the revolution that overthrew Hosni Mubarak. We're live in Cairo this hour.
ANNOUNCER: Live from CNN Abu Dhabi, this is Connect the World with Becky Anderson.
A very good evening. It is 8:00 in the UAE.
I want to start in a country that got one of the biggest bailouts in financial history. And now looks likely to vote in a party dedicated to
undoing it.
People in Greece have just under an hour left to vote in their general election. The left-wing Syriza Party was leading in the opinion polls
before the ballot. And you see the man they have been voting for earlier. The party, well it wants to reverse harsh austerity cuts and get some of
Greece's huge debt written off.
(BEGIN VIDEO CLIP)
ALEXIS TSIPRAS, SYRIZA PARTY LEADER: And Greece will return democracy. We people will regain social cohesion and dignity. And the message is that our
common future in Europe is not the future of austerity, it's the future of democracy, solidarity and cooperation.
(END VIDEO CLIP)
ANDERSON: Well, the party's promises to put them on a course with international lenders and have stirred fears of Greece leaving the
EuroZone.
Well, let's go to Athens. Isa Soares is standing by.
What do people in the capital have to say today, Isa?
ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Hello, good evening, Becky.
They're pretty divided, actually, having spoken to several people in the last several days. Many people, of course, really hanging on to every
single word that Alexis Tsipras has been saying, but people really weighing up their options, Becky.
You mentioned Alexis Tsipras the leader of this left leaning party. They're really many people have been enticed by the promises of hope and change.
On the other side you have New Democracy that's lead by the Prime Minister Antonis Samaras who say we must stay the course. There is no other way. If
we leave, we will leave the measures that have been set by us, by our creditors. They're really. The ship will sink.
So it's been a campaign, one that's been lead by hope, one that has been lead by fear.
But what is very interesting here, Becky, is how the numbers have changed in the last several weeks or so. 48 hours ago, the government of Alexis
Tsipras actually had about a 4 percent lead on Antonis Samaras of New Democracy. So I wanted to know what is forcing people to really turn to the
Syriza Party. What is it about their message they believe in.
Take a listen to what some people had to say.
(BEGIN VIDEO CLIP)
SOARES: Steadfast and defiant, these cleaners are not budging. For 595 of them, this is now their second home, a makeshift camp outside the ministry
of finance, the very office who fired them roughly a year ago in cuts demanded by Greece's creditors.
ANTONIA LABROPOULOU, CLEANER (through translator): Most of us are single mothers. There are also many widows. And we're over 40 years old and many
approaching retirement. We believe it will be impossible to find another job in a country that is in financial decline.
SOARES: It's a glove rebellion that has inspired a nation and taken them to the doors of parliament.
Now more resolute than ever, they're placing their votes on Syriza in hope that they will clean up Greece's economy.
LABRAPOULOU (through translator): Most of us women were not involved in politics. There are women who used to vote for other parties and now they
will be voting for Syriza, because they believe that it is the only way out of their problems.
SOARES: They have also realized that these problems are shared by many. And we must all be politically aware.
But making up your mind isn't as easy as it seems, at least not for this computer developer. A private sector employee who has always voted for the
conservatives now having seen his wages slashed and with a newborn baby, he's voting for the change that Syriza has promised.
STATHIS PAPCHRISTOU, COMPUTER DEVELOPER: Syriza doesn't express 100 percent my opinions, and I'm not level with what they believe in they want to do,
but I believe that it's something new, it's a new party that hasn't been, you know, the government or anything else. So it's a new party, fresh ideas
and it's going to change what is already written.
SOARES: Disenchantment you wouldn't expect to hear from middle class families across Greece many of whom until now have backed Prime Minister
Antonis Samaras.
LILA FLOROU, TRADER: You want to stay in Europe. You want to see reforms to take place in Greece. You want there to have hope for the best, but you
don't actually believe in the leaders you have.
SOARES: Hope and fears, emotions shared by the many who just want things to get better.
(END VIDEOTAPE)
SOARES: And Becky, many people taking a gamble and many people saying it's actually a gamble on Syriza. And when I asked why people take such a gamle,
they said, well, look at the state of our economy. In the last five years, the economy shrank a quarter of a percent, industrial production has
plunged 30 percent, people living on or below the poverty line, about 3 million people, they said we have given so many politicians the chance, so
many parties to change things here in Greece, they just haven't done it. So now many people gambling on Syriza in the hope that they can change it.
But of course it really depends on how things go after tonight, of course, if they have a majority or whether they need a coalition and their relation
with Europe, the European leaders from Berlin to Brussels have been very steadfast saying -- basically saying you have to stick to the course of
austerity, you have to stick to reforms. There is no carrot, there is just stick.
So whether Syriza if they do win, if they water down some of their promises or if they do a complete U-turn, which is what Samaras said several years
ago, that obviously remains to be seen.
But the people here really hoping for a change that they've been waiting for the last five years no longer coping with austerity and recession,
Becky.
ANDERSON: Isa Soares is in Athens for you this evening. Isa, thank you.
Many analysts say Syriza's surge in popularity stems from deep anger with politicians who have been Greece, they say, through the financial crisis.
In around 10 minutes time, I'll be asking the editor of a major Greek newspaper whether exiting the euro is really a possibility and what that
can mean for the country.
We'll also look at whether Syriza might become more pragmatic if faced with the realities of governing, as Isa was pointing out. Join us for that
conversation later on Connect the World with me Becky Anderson.
Well, ISIS is demanding a swap, an al Qaeda bomber for a Japanese hostage's freedom.
A video released on Saturday claims ISIS beheaded Haruna Yukawa, one of the two Japanese men it's been holding captive. The U.S. president called
Japan's prime minister Sunday to offer condolences and convey solidarity with the Japanese people.
The prime minister denounced Yukawa's murder and says he believes the video is authentic.
Well, a second hostage, Kenji Goto, remains alive. Will Ripley has the reaction from Japan.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: After hours of analysis by some of the top experts here in Japan and around the world, a tragic
conclusion that the videotape posted by an ISIS supporter is believed to be authentic, which means that Haruna Yukawa was indeed brutally murdered,
decapitated. And the picture of that heinous crime posted on the internet for the world to see.
Japanese prime minister Shinzo Abe spoke about the investigation and its tragic outcome.
SHINZO ABE, JAPANESE PRIME MINISTER (through translator): A possible image of Mr. Haruna Yukawa's murder has been released. It's a matter of the
greatest regret.
We've been analyzing the credibility of this image, and unfortunately at this point I must say it's highly credible.
RIPLEY: The father of Haruni Yukawa understandably grief stricken, devastated and still struggling to accept the fact that his son is gone.
UNIDENTIFIED MALE (through translator): I'm wishing that it isn't true in my heart. If he returns, I would hold him tight in my arms.
RIPLEY: And for the family of Kenji Goto right now, so much fear, so much uncertainty. On the videotape, you hear him pleading with his wife Riko to
talk to the Japanese government and convince them to work out some kind of a deal, a prisoner exchange, that would allow him to walk free and back
into the arms of his family. He knows that if that doesn't happen he, too, could meet a similar fate to his friend Hauna Yukawa and fall victim to the
brutality of ISIS.
Will Ripley, CNN, Tokyo.
(END VIDEOTAPE)
ANDERSON: Well, it turns out ISIS does want a certain prisoner freed in exchange for Kenji Goto. She is an Iraqi woman on death row in Jordan for
her role in a series of bombings a decade ago.
Jomana Karadsheh joins me now live from Amman with more on that side of the story.
What do we know about this woman?
JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT: Becky, in 2005 al Qaeda in Iraq, that is the predecessor of ISIS, dispatched a team of four suicide
bombers to Jordan, three hotels in this city on November 9 were hit by suicide bombers. Jordanian authorities arrested Sajida Rashawi (ph) and
later she appeared on Jordanian state television in a series of confessions that the Jordanians aired.
And she said that she had been at one of the hotels with her husband and she also tried to also carry out a bombing there, but her suicide vest
failed to detonate.
In 2006, she was sentenced to death and she has been on death row since. Jordan halted the death penalty that year and there has been a de facto
moratorium on the death penalty in Jordan up until last month when Jordan resumed the executions here with the execution of 11 men.
Becky, Sajida Rashawi (ph), to terror organizations, to ISIS, she is seen as a hero, part of a group that did something very rare, they were able to
strike this country that prides itself with its safety and stability.
And for Jordanians, she is symbolic of a day that really shook this nation, what people here describe as the 9/11 of Jordan.
ANDERSON: Jomana Karadsheh is in Amman for you this evening.
Still ahead this hour, tensions on the streets of Egypt four years after the uprising that led to the ouster of Hosni Mubarak. We'll take you live
to Cairo for what are the violent protests around the country.
Plus, U.S. President Barack Obama visits India with tensions back home. We'll have a live report from New Delhi. That coming up.
You're watching CNN.
(COMMERCIAL BREAK)
ANDERSON: This is CNN and Connect the World with me, Becky Anderson. Welcome back.
Now, let's get back to our top story this hour, that vote in Greece that could have an effect on the whole of the EuroZone.
Faced with a surge in support for the left-wing Syriza Party, the ruling New Democracy Party is pushing the idea that a vote for them is a vote for
stability.
Prime Minister Antonis Samaras says the elections are a choice between safe hands and uncertainty.
Well, let's take a closer look at the parties in the mix. Syriza of the left wing said it's a party set to win, although not an outright majority.
The party is strongly anti-austerity.
Polls put the ruling center fight party in second place. New Democracy is led by Prime Minister Antonis Samaras. He's promising to cut taxes and
gradually end austerity measures.
Pasok is Greece's socialist party and also part of the current governing coalition. It's trailing in the polls, but could be a candidate for a
coalition should one be needed.
And the new centrist The River Party is another potential coalition partner.
All right, let's do this, shall we? Let's bring in Alexis Papahelas who is editor-in-chief at the Daily Kathimerini newspaper in Greece.
So if Syriza wins tomorrow, how will your paper be reporting the story?
ALEXIS PAPAHELAS, EDITOR-IN-CHIEF KATHIMERINI NEWSPAPER: Well, it looks like there is going to be a landslide for Syriza. And I think,you know, our
headline is going to be that it's an historic election since the left has never had power in Greece never in our history. So it is a really historic
moment.
ANDERSON: So you don't see the need for a coalition at this point. You're expecting a landslide, correct?
PAPAHELAS: Well, you know, we have a very elaborate and very (inaudible) election laws, so even though the difference between the two parties could
be quite big, quite substantial, it will depend on whether smaller parties will enter parliament.
My prediction is either they will have a very slim majority in parliament, or they will be governing with one of the smaller parties. Not clear which
one at this point.
ANDERSON: There will be people watching around the world who, quite frankly, say so what. Why do we care about what is happening in Greece?
Clearly, what is happening in Greece has an impact not just on those living there, but on the EuroZone and consequently on the wider, bigger global
economic picture.
A Syriza win for you means what, sir, for Greece going forward? Do you expect them to keep to their promises, they're really stringent anti-
austerity policies that they've been selling to the electorate?
PAPAHELAS: Well, I think it's going to be a difficult time, because Syriza has made a lot of promises. The country is going to run out of money
basically around April or May if there's no agreement between Greece and its lenders.
I think it's going to be a prolonged period of negotiation, a very tough, a very dramatic negotiation, which could actually go into the summer.
The question we all have in our minds, and we don't have an answer, is whether Mr. Tsipras is going to make a U-turn in the compromise or whether
he's going to play really tough ball and whether he has in his mind to leave his mark in Europe, whether he really wants to like go -- you know,
all the way, let's say, with Germany, with the IMF and the others and try to strike a deal and a haircut on the debt.
I don't know. I don't have a clear answer on that.
ANDERSON: All right, well the hours ahead will reveal the answers. Sir, we thank you for joining us.
Keep an eye on CNN. We'll get your that result as and when it comes and its impact on just Greece, as I suggest, but in Europe and the rest of the
world.
Thank you, sir.
Live from Abu Dhabi, this is connect the world.
Coming up, a chat over tea at the state guest house in India. I'm going to head to New Delhi for you to find out what these two leaders have been
talking about.
And security heightened in Egypt as the country marks four years since the revolution that toppled Hosni Mubarak. I'm going to get you live to the
Egyptian capital. That coming up here on CNN.
(COMMERCIAL BREAK)
ANDERSON: This is Connect the World with me Becky Anderson. Welcome back.
Several deaths are being reported in Egypt on the fourth anniversary of the revolution that toppled President Hosni Mubarak. Among them, a protester
shot in the city of Alexandria.
Now, the victim is believed to have been a supporter of Mohamed Morsi, Mubarak's Islamist successor who was overthrown in 2013.
Security has been tightened in Cairo and around the country. The new government of Abdel Fatah al-Sisi has cracked down on all forms of dissent
since taking power.
Well, authorities say police opened fire on that protester in Alexandria after he first shot at them.
Ian Lee, joining me now from Cairo with more. And Ian, the incident serving to highlight, I guess, the divisions that remain in Egypt four years after
an uprising that was supposed to give the country a new lease of life. What's the mood like in Cairo this hour?
IAN LEE, CNN INTERNATIONAL CORRESPONDENT: Well, Becky, the mood as you described earlier, there's a lot of security around here. Four years on
protests around the country. They've been met with, though, a hand. We're hearing from the ministry of health that 14 people have been killed across
the country in these protests.
Now these protests mainly made up by supporters of the Muslim Brotherhood.
I was in Tahrir Square four years ago when this revolution kicked off. And one of the demands was an end to police brutality. And we haven't seen any
real tangible reform from the ministry of the interior.
I talked to one man, though, who says that change come from the streets, but he says not through protests. Take a look.
(BEGIN VIDEO CLIP)
LEE: Reda Hamed works the Cairo suburb of Salaam (ph) trying to energize people around his run for parliament in March. His platform, fulfilling the
goals of Egypt's revolution.
"When there is bread and freedom, social justice and human dignity will be achieved. For people, it begins with bread," he says.
Hamed knows victory is a longshot for his new Freedom and Liberty Party. Money is tight. But he believes their presence keeps Egypt's politics open
to everyone.
A revolution happened in this country to hold people accountable, says Hamed. But this man replies, the revolution didn't give us anything.
His message is a hard sell. Little has changed in the four years since the January uprising. Police continue to use deadly, heavy-handed tactics.
Saturday, they killed an unarmed peaceful protester in central Cairo. Thousands have been killed and even more arrested over the past four years.
All the while, former President Hosni Mubarak who the revolution ousted and his sons have been cleared of charges, leaving many demands of the
revolution unresolved.
Egypt faces a laundry list of issues from security and housing to health care and unemployment. The government says, though, they understand the
importance of delivering.
Minister of Finance Hany Kadry believes it begins with employment.
HANY KADRY DIMIAN, EGYPTIAN MINISTER OF FINANCE: The most important thing is to rebuild confidence in the Egyptian economy, to attract the
investments again, because we believe very much that having a job is your first line of protection against poverty and hardship.
LEE: The government also faces other problems: an Islamist insurgency has killed hundreds of police officers and soldiers, almost daily attacks
target security personnel.
At Hamed's party headquarters, we learn their secret to bring about change. Their strength is their youth. At 47, Hamed is considered an old man.
Perseverance, they believe, will eventually achieve the revolution's goals.
(END VIDEOTAPE)
LEE: And Becky, that is something that's fairly unique to that party is the youth of their memberships. And a lot of these revolutionary parties that
popped up afterwards, a lot of them are made up of young people.
When you look at these older parties, there are a lot of older people that you know aren't really passing down the baton the next generation. And when
you talk to them, they say they're ready. They're patient, they're waiting 10, 15 years. They believe that is when their goals, the revolutionary
goals will be met.
Now President el-Sisi also gave an announcement today. He said that more action needs to be taken, more work, and also more patience. A lot of
people saying that there needs to be patience. But these revolutionaries say it shouldn't be at the expense of their liberties, Becky.
ANDERSON: Ian Lee in Cairo for you.
Well, the latest news headlines are just ahead here on CNN. Plus, the invitation that has the White House up in arms. We'll have more on the
fallout from the Israeli Prime Minister Benjamin Netanyahu's upcoming trip to Washington.
(COMMERCIAL BREAK)
ANDERSON: You're watching CONNECT THE WORLD with me Becky Anderson. The top stories for you this hour here on CNN.
People in Greece are voting in their general election, which could impact the entire eurozone. The left-wing Syriza Party was leading in opinion
polls before the ballot. Led by Alexis Tsipras, it wants to reverse harsh austerity cuts and get some of Greece's massive debt written off.
ISIS is demanding a swap, this convicted al Qaeda bomber for a Japanese hostage that it is holding. The woman was sentenced to death for her role
in a series of bombings in Jordan ten years ago. The demand for her release came in a video posted Saturday that claims ISIS has beheaded another
Japanese man that it kidnapped.
Local officials in northeast Nigeria say Boko Haram has released almost 200 captives. They were taken when the militant group attacked their village
earlier this month. Reuters reports that at least 20 other people are still being held captive. A community leader says the newly-released hostages
will ask for government assistance.
The US and India say they are elevating their relationship. US president Barack Obama arrived in New Delhi on Sunday morning for a three-day visit
with a warm reception. The Indian prime minister, Narendra Modi, even broke with protocol, greeting Mr. Obama personally on the tarmac.
Later, the US president joined Prime Minister Modi at a wreath-laying for Mahatma Gandhi, and the two held one-on-one talks. They say they are
committed to reinvigorating the ties between their countries and boosting cooperation.
CNN White House correspondent Michelle Kosinski is traveling with President Obama. She joins us now from New Delhi. And he is cutting short his trip in
order to pay his respects to the royal family in Saudi on his way home. But certainly we've learned that they have elevated their relationship, and
also patched over some differences. Explain, if you will.
MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Yes, that's what we're seeing. There's a lot of beautiful Indian pageantry, pomp, and circumstance
surrounding this trip. They're at a state dinner right now.
But earlier in the day, both sides said that they have deepened that relationship, and they made substantial progress in a number of areas. I
think the headlines are really in three ares: civil nuclear cooperation, defense, and climate.
On the nuclear matter, the US is calling this a "breakthrough." This is something that has been worked on for more than a decade. It really hit an
impasse about six years ago. But now they've reached an agreement on things like US companies coming into India, building nuclear reactors to provide
much-needed power to more of India.
But there were a couple of big issues that they couldn't agree on before. One was in liability. The US wanted more flexibility on that end from the
Indians, and that's something that was very unpopular in the Indian congress. Now, apparently, they found a way to work around that without
having to change the law.
And also, the US had been demanding tracking of all nuclear material coming into India. They've reached an agreement on that as well, although they're
not giving any detail now because they say they're still working toward fully implementing the plan.
Also on defense, they've renewed their 10-year defense agreement that's going to involve more trade, more sharing of technology. We know that they
want to work on technology like aircraft carriers and Jet engines.
And also on climate, they're going to deepen the cooperation in reducing chlorofluorocarbons, expanding alternative energies, especially solar and
wind. But again, this isn't as specific as that big climate agreement that was reached a couple of months ago between the US and China. These aren't
the specific carbon reductions that we saw in that plan.
The US, of course, would like to see this happen, and both the US and India say they're going to be working on something more leading up to the global
conference on climate change in Paris in December.
But this is significant, they say, and this was an area where there had been disagreements in the approach to carbon reductions and climate in the
past. But the US says they are reaching more and more cooperation in that area, Linda (sic).
ANDERSON: Michelle, thank you. Fareed Zakaria will sit down with President Obama while he's in New Delhi to discuss a wide range of topics. You can
watch that exclusive interview starting 11:00 AM Tuesday in London, 3:00 here in Abu Dhabi. You'll, I'm sure, work out times for you locally.
So, some would say a successful start for Mr. Obama in India. Part of his stated objective to pivot US relations to India -- oh, sorry, to Asia at
least. But can he push through his foreign policy objectives with a Republican-led Congress back home?
I want to bring in CNN global affairs correspondent Elise Labott. She joins us now, live from Jerusalem. I want to talk about a number of issues, but
let's start, Elise, just with this India trip. We've heard about this pivot to Asia. We've been promised it, now, for some years. Is this really the
start of things to come?
ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Well, Becky, certainly the administration hopes so, because everybody knows that economically and in
terms of growth in the future that Asia, that's where the great game is right now.
And certainly, countering China, dealing with India as more of a global partner. The US has been looking for India to take a greater role in global
affairs. And certainly under Prime Minister Modi, President Obama hopes that relationship will catapult the US-India relationship into a greater --
on the global stage.
But what happens is -- and we've seen this week -- every time the US wants to look towards Asia -- and even the president has to shorten this trip now
because of the death of Saudi King Abdullah -- the Middle East always dragging the United States back to that region.
Every time it wants to kind of spread the wealth, if you will, not only deal with these Middle East issues. The Middle East in such turmoil right
now, the US has no choice but to focus their attention there.
ANDERSON: All right. Well, let's stick with the Middle East, then, because Israel's prime minister defending his controversial trip to the United
States, slated, of course, for early March. Now, Benjamin Netanyahu, we know, will address Congress as it considers more sanctions against Iran.
The Obama administration, at least, opposes new measures while nuclear talks are going on. Let's just a have a listen for our viewers' sake to
what Mr. Netanyahu told his cabinet today, and I want you to react to this.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL (through translator): As prime minister of Israel, I am obligated to make every effort in order to prevent
Iran from achieving nuclear weapons that would be aimed at the state of Israel. This effort is worldwide, and I will go anywhere I am invited in
order to enunciate the state of Israel's position and in order to defend its future and its existence.
(END VIDEO CLIP)
ANDERSON: We know this trip hasn't gone down well at the White House. That's, perhaps, an understatement. How do you think they're going to react
to what they've heard from Mr. Netanyahu today?
LABOTT: Well, Becky, I don't think what the prime minister said today is any different than what they've expected as a result of the announcement of
this trip. Basically, the prime minister has seen the criticism.
I've been talking to officials for the last couple of days in Washington. I've never seen -- the relationship, let's face it, the relationship
between President Obama and Prime Minister Netanyahu has never been a warm one. Very frosty, a lot of tensions. Personally, in all the years that I've
been covering, and I've never seen it so bad.
The Bush -- sorry, excuse me -- Obama administration feels very slighted by the actions of Prime Minister Netanyahu. The US feels for all it does on
Israel, not -- and I'm not even talking about the security issues right now. Because that's a given. The US is always going to help Israel in terms
of its security in the region.
But in terms of the political support that the US gives Israel, whether it's at the United Nations, whether it's over the Palestinians trying to
join the International Criminal Court. Secretary Kerry made 50 calls about that. They are very upset at the fact that the president -- prime minister
went behind the White House's back to set up this trip.
So, the prime minister doubling down right now, even after hearing all that criticism, it's not going to go down very well.
ANDERSON: Well, I just want our viewers to get this. The Obama administration, perhaps, had another reason to be rattled by the trip. Mr.
Netanyahu invited by the Republican House speaker, of course, John Boehner, apparently without any consultation with the president, as you alluded to.
That seemed to surprise even those who are usually critical of the White House. Let's have a listen to this.
(BEGIN VIDEO CLIP)
CHRIS WALLACE, FOX NEWS ANCHOR: Ron Dermer, the Israeli ambassador, according to the State Department, never mentioned the fact that Netanyahu
was in negotiations and finally agreed to come to Washington, not to see the president, but to go to Capitol Hill, speak to a joint session of
Congress, and criticize the president's polices. I have to say, I'm shocked.
SHEPARD SMITH, FOX NEWS ANCHOR: It was Secretary Kerry who had a pretty good comeback to Boehner's political stunt here.
(END VIDEO CLIP)
ANDERSON: He may be shocked. I think, perhaps, the US watching public who would expect the Fox network to be fairly right-wing when it comes to its
narrative -- I think I'm not telling anybody anything that they don't already know -- were you shocked to hear this stance?
(LAUGHTER)
LABOTT: I saw that clip. It was about a five-minute segment between Shepard Smith and Chris Wallace, two conservative anchor people on Fox News. I was
pretty shocked.
When Fox News, that is really kind of has a very, as you said, right-wing stance, and is also very pro-Israel and very supportive of Prime Minister
Netanyahu's policies, particularly towards Iran in general -- when they said that, that was shocking to me.
And that just means that everybody, I think. It's not so much that the prime minister wanted to come talk to Congress. It was the way it was done.
It was the breach of protocol. It was the snubbing, publicly, of the US president that I think has everybody so shocked.
What officials told me is, look. We don't want him to come to Congress and talk about Iran and be critical at this critical juncture when we need to
be negotiating with Iran. But if he was up front about it. If he said, you know what? I understand your position, but I've got to take care of my
people, I've got to do what I've got to do, they wouldn't like it, but they would begrudgingly accept it.
But the way that this went down, I think, really is a snub and I think has really shocked people in Washington, and I think will have a taint to the
relationship for some time to come.
ANDERSON: Well, let's see what happens. Elise, thank you for that.
If you've been following the drama in US-Israeli relations, if so, what do you think about it? The team at CONNECT THE WORLD always wants to hear from
you, facebook.com/CNNconnect. If you're a regular viewer, you'll know that. You'll also know you can tweet me @BeckyCNN. That's @BeckyCNN.
Your Parting Shots tonight come from Egypt. Experts now say one of the world's most recognizable relics can be restored after being damaged in
what was an unfortunate accident. Amir Daftari now has more on King Tut's close shave.
(BEGIN VIDEOTAPE)
AMIR DAFTARI, CNN INTERNATIONAL CORRESPONDENT (voice-over): This is the moment when on of the greatest treasures in human history was repaired with
nothing more than household glue. The people charged with the upkeep of King Tutankhamun's mask not only broke off its famous beard, but also
managed to crudely stick it back on, leaving it scratched and stained.
Images of the botched job are all over the internet, much to the horror of experts around the world. But officials at the Cairo Museum have been quick
to reassure people that the damage can be reversed and that it's not permanent.
MAMDOUH AL-DAMATY, MINISTER OF ANTIQUITIES (through translator): That's an exaggeration, because there's a huge difference between saying, like it has
been said, that the mask has been broken or that there is change in its color. Other things are being said, such as that those who broke it are not
experts or that those who worked on it are not specialists.
No, those who worked on it are specialists, and like you heard, there are different schools of dealing with these type of things.
DAFTARI: The 3,000-year-old relic is one of Egypt's biggest tourist attractions. So, at a time when the country's visitor numbers are
struggling, authorities will hope that this hairy moment doesn't cause lasting damage of any kind.
Amir Daftari, CNN.
(END VIDEOTAPE)
ANDERSON: And that was CONNECT THE WORLD with me, Becky Anderson. We'll have a special edition of "The International Desk" just as polls in Greece
are closing. That's coming up in 15 minutes. Do stay tuned for the latest results from what is this crucial election. From the team here in the UAE,
it is a very good evening.
(COMMERCIAL BREAK)
JOHN DEFTERIOS, HOST: The snowy slopes of Davos, Switzerland, are far removed from the desert sands of the Middle East, but it's events in that
region that are dominating the agenda here at the World Economic Forum. Mainly the plunging cost of crude.
With oil prices at better than a five-year low, we'll look at the impact this will have on the region's producers, but also the relief it provides
to the region's importers as well. MARKETPLACE MIDDLE EAST is looking at both sides of the oil debate.
(BEGIN VIDEOTAPE)
DEFTERIOS (voice-over): Six years ago, one of the key issues in this Swiss alpine valley was the threat of peak oil, the inability to find new energy
reserves.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I, Barack Hussein Obama, do solemnly swear --
DEFTERIOS: US president Barack Obama took the oath of office promising to do something to reduce America's dependency on foreign crude.
(MUSIC - "HAIL TO THE CHIEF")
DEFTERIOS: Fast-forward to 2015. US shale producers are cranking out nearly 4 million barrels a day, more daily output than oil-rich Iran.
Since their meeting in November, OPEC producers, led by Saudi Arabia, have refused to cut their production in a battle for market share, suggesting
non-OPEC players can do so if they are worried about prices.
ALI AL-NAIMI, SAUDI ARABIAN MINISTER OF PETROLEUM: If they want to cut production, they are welcome. We are not going to cut. Certainly Saudi
Arabia is not going to cut.
DEFTERIOS (on camera): And this is a position you'll hold for, what, the first six months of 2015?
AL-NAIMI: It's a position we'll hold forever, not 2015.
DEFTERIOS (voice-over): As a result, oil is not $115 a barrel, like last June, but hovering below $50. Leading up the Davos annual meeting, energy
executives, polled at this Gulf Intelligence Energy Forum, say prices will remain between $50 and $60 this year.
Industry analysts say stability, or the so-called end-point, when oil can level off between $70 to $90 a barrel, could be three to five years away.
CHRISTOPHE RUEHL, GLOBAL HEAD OF RESEARCH, ADIA: This end-point will only come -- nobody talks about tomorrow and today -- but it will only come when
global demand is again strong enough to match A, the increased production growth in North America which we have seen, and B, OPEC production at
whatever level they decide.
DEFTERIOS (on camera): But those attending the meeting here in picturesque Davos know a great deal can happen between now and 2020, especially in
places like Libya and Yemen. After all, we've had four turbulent years after political upheavals.
DEFTERIOS (voice-over): In countries where budgets require $100 or more per barrel to break even, some say the price squeeze could spark more unrest.
ALI KHEDURY, CEO, DRAGOMAN PARTNERS: If they incur too much suffering on some of their neighbors, that those fires they light through exceptionally
low prices can ultimately lead to radicalization and regional destabilization, fundamentally threatening the global energy supply.
(END VIDEOTAPE)
DEFTERIOS: Here within the Congress Center, no one seems to be factoring in any sort of geopolitical risks, especially in the Middle East, and as a
result, there's downward pressure on prices, and this is not helped by the fact that the four core producers within the Gulf are unwilling to cut
production.
(BEGIN VIDEOTAPE)
DEFTERIOS (voice-over): With 12 members, the Organization of Petroleum Exporting Countries controls over 80 percent of the world's proven
reserves. The bulk of those are in the Middle East. The man at the helm of the group is Abdalla el-Badri, the secretary-general. An oil veteran, he
has been in the post since 2007.
DEFTERIOS (on camera): Two months into this process, would you say it's been the wisest strategy for the organization?
ABDALLA EL-BADRI, SECRETARY-GENERAL, OPEC: If we cut our production, first of all, we don't know by how much. If we cut in November, say 1 million,
then we come back in June we reduce another million. We come back 2016 and we reduce production, we keep reducing our production, replacing it by non-
OPEC supply of a very high cost.
DEFTERIOS: You see that the shale producers are starting to cut jobs already. Can Russia withstand a price of $50 a barrel, and OPEC will
benefit from this process?
EL-BADRI: Let me tell you one thing. Our decision was not targeted to shale oil, it was not targeted to Russia, we are not targeting anybody. It is a
pure economic decision for the benefit of our member countries.
DEFTERIOS: Finally, is it worth all this dislocation we're seeing in the oil market? Isn't it a lot of pain to determine what the bottom of the
market is and for OPEC to hold the production? Isn't it a lot of pain for many oil producers of the world?
EL-BADRI: Because some of them, they are saying that OPEC caught them by surprise by this non-OPEC supply. But it is the other way around. It is the
non-OPEC supply with the high cost that caught by surprise that OPEC did not produce its production.
DEFTERIOS: So, Russia's not cutting production right now. The shale producers are cutting some production. We could be in this mess for another
six to eight months, don't you think, sir?
EL-BADRI: It's OK, this is the market. We are accepting it.
DEFTERIOS: And playing a pretty hard game, wouldn't you say?
(LAUGHTER)
EL-BADRI: Maybe.
(END VIDEOTAPE)
DEFTERIOS: So, a strategy that is leading to a showdown between the Middle East producers of OPEC and non-OPEC players like Russia, Norway, and as we
discuss after the break, the United States.
(COMMERCIAL BREAK)
DEFTERIOS: It was less than a year ago that the United States hit a landmark milestone. After the back of a shale oil boom, the country jumped
from 5 million barrels a day in 2008 to over 8.5 million with expectations to increase even further.
But there is a serious threat to that expansion. For producers, the current cheaper prices mean less profits and potentially even losses.
DEFTERIOS: Every year at the World Economic Forum, business and government leaders and even celebrities descend on this Swiss resort to debate he key
issues of the year. And after four years of record prices of over $100 a barrel, the falling price of crude was right at the top of the agenda.
(BEGIN VIDEOTAPE)
SUNIL KANT MUNJAL, CHAIRMAN, HERO MOTOCORP: The oil prices are likely to stay where they are or trend down a little bit further. And I think for the
world, especially for the developing world, where many of the countries are oil importing countries, I think this is wonderful news.
MANFREDI D'OVIDIO, CHAIRMAN, SILVERSEA CRUISES: Well, certainly for the cruise industry, it's a big advantage, even though the drop in the price of
extraction, the cost of the price is not what we find when we go and refuel our ships.
IYAD MALAS, CEO, MAJID AL FUTTAIM: At this stage, with the volatility that exists and not seeing a bottom -- and maybe we have, maybe we haven't, and
that's what's not very clear.
DEFTERIOS: For the oil-rich producers of the Middle East, there is still a sense of calm, however, mainly because of the cheap rate of production. On
average, it costs around $27 to produce a barrel of oil in the Middle East, $10 or less in the Gulf states.
In the United States, that average is closer to $65. And with oil continuing to sink below the $50, US shale producers are in a difficult
position of having to wait and weather the storm.
Shale producers, like Ross Perot, Jr. The Texan billionaire heads up and manages the family business, which has interests in real estate, financial
investments, and oil and gas.
DEFTERIOS (on camera): How much dislocation will this fall in oil really have, particularly on shale production going forward, in your view?
ROSS PEROT, JR., CHAIRMAN, HILLWOOD: The key to US oil is it's a private sector. Private money, private sector. So already, production is being shut
down, rigs are being laid down. And I think the world will be shocked how quickly we re-correct within Texas within the shale oil place.
DEFTERIOS: It's interesting. The Saudi people I spoke to at the OPEC meetings were suggesting they could knock out to this price correction 20
to 30 percent of the shale production and even permanently. Do you agree with that?
PEROT: Well, because you have a -- I do. There's a lot of shale that's marginal shale. It's very difficult to produce. Core shale plays will
produce even in a low oil price environment, and they'll be the first to come back. But you could take half a million barrels out of the US
production fairly quickly with a low oil price.
DEFTERIOS (voice-over): Only last year, their oil company, HKN Energy, announced that it had struck oil in Kurdistan. Northern Iraq has flourished
over the last few years as international energy companies tap into the region's estimated 45 billion barrels of reserves. But as the ISIS
insurgency continues, could this recent prosperity be under threat?
PEROT: Kurdistan is the great, last onshore oil play left in the world. These are where you have the great oil fields that should have been
discovered 40 or 50 years ago, but because of political reasons, no one drilled them. They're now being drilled.
The Kurds will ramp up to probably over 3 million barrels a day. They will be one of the great additions to the world oil supply out of Kurdistan.
ISIS slowed it down, the turmoil in Baghdad slowed it down.
It certainly makes investors nervous about investing in Kurdistan when you have a war and you have political uncertainty. But the opportunity is so
large, if you're long-term, it's a very strategic place to invest and to be in the oil business.
DEFTERIOS (voice-over): It's not all doom and gloom. Energy importing countries, like Jordan, are immediately reaping the rewards of cheap oil.
Unlike its Gulf neighbors, Jordan doesn't sit on a wealth of reserves. It actually imports about 90 percent of its energy needs.
So, the lower prices are having an impact, according to finance minister Umayya Toukan, when I spoke to him here at the forum.
DEFTERIOS (on camera): Many people are talking about the strain of lower oil prices, but how about for Jordan as an economy when you see a drop of
better than 60 percent?
UMAYYA TOUKAN, JORDANIAN FINANCE MINISTER: It's very good for the economy of Jordan, because the cost of production will be less. A very important
input to producing goods and services is oil, so lowering the oil price by 60 percent should ultimately lead to higher incomes as well as to higher
demand for goods and services and growth.
DEFTERIOS: As a finance minister, do you worry that people lower their guard and don't want to go through more reforms now that the oil price has
come off? Is that the real danger?
TOUKAN: That's very, very relevant. People feel -- maybe they're tired of austerity, and they consider this as a break. But really, that would be
wrong. I think we should use this favorable circumstance to continue with our reforms and to increase competitiveness.
(END VIDEOTAPE)
DEFTERIOS: Umayya Toukan of Jordan talking about the energy market, which dominated the proceedings here at the World Economic Forum.
And that's all for this special edition of CNN MARKETPLACE MIDDLE EAST, this week from Davos, Switzerland. I'm John Defterios, thanks for watching.
(COMMERCIAL BREAK)
END
