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U.S. Market's Extremely Volatile In Early Trading; World Markets Following U.S. Slide; Global Politics Trumps Athletics; Aired 10-11a ET

Aired February 06, 2018 - 10:00   ET

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

(COMMERCIAL BREAK)

[10:00:13] BECKY ANDERSON, CONNECT THE WORLD, CNN: For just half an hour or so today the DOW dropping again briefly injuring correction territory

but then bouncing back right now. You can see the record is a 1 percent into positive territory it was a volatile little picture on Monday without

plummeting more than 4 percent saying the largest one-day loss of points ever. Welcome to the show this is never be the better moment to invest

your time with "Connect the World" live from Abu Dhabi. I am Becky Anderson. Let U.S. get going for you. CNN at the New York Stock Exchange

right now, the largest exchange in the world by far by trillions of dollars and that is why Maggie Lake is there for on the swing in and out of

positive territory out of the gate. Any fence of what is instore this trading Tuesday?

MAGGIE LAKE, CNN MONEY CORRESPONDENT: No. And if anyone tells you they know Becky don't listen to them. This is very (inaudible) all over the

place in the first hour of trade. Down 500 up 350 now down to, now still up to 55, hundreds of the point every time I look over to the screen on

everyone is brief thinking what happen yesterday and trying to figure out where there's about them, I will tell you hearing two different narratives,

one coming from my money managers and economist, who look at the long-term who say this type of moves, while not usually condense in this time period

are normal. Look at the long-term fundamental, don't panic, and don't react to short-term. Completely different story when you are talking to

traders and including one I just talk to wanted to talk to from Chicago who gave a good old hauler and sais volatility is back, momentum is on the

downside no sense that you should change your trade and indicated there is more selling to come. They are looking at short-term. Driven by the

(inaudible), driven by the momentum and motion. Where are those two come together and find the bottom degree, it is anybody's guess right now. What

is going to be important now reopen and where we close, so hang on.

ANDERSON: And you'll hear that refrain nothing to worry about the financial on sound that brings back memories of 2008 just before the

financial crash for some. Sit this one out, might be the best advice to those who don't trade this market professionally, correct?

LAKE: Yes. Get to the sideline and it is very hard to pick what's going on now. You know you will hear people say that you can't just go on cruise

control right is not always getting it down but you can decide when you need your money, how much risk you can tolerate and take a look at your

portfolio and see if there is places that you are underexposure, overexpose and then when things are settle you may want to readjust. Not a great time

to dive in now when things are moving so quickly. Especially if you are trained to settle at the end of the day. Especially when you are looking

at some funds. So very hard for the individual investor in the present time very hard individual investor. Again there is no reason to panic.

There are going to be a larger conversation Becky, going on about the role of central bank and it really different era now when the achieve money is

over and we are looking at a higher interest rate, how fast do they climb or was that due to the global economy. That is the fundamental questions.

So this is a completely detach from the fundamental, but you are also looking at corporate balance sheet that are a lot healthier than they were

back in the financial crisis which I don't want to clean up their balance sheet and do lever. So things are different, but it's hard to have nerves

of steel when you watch the swings on the market.

ANDERSON: You are absolutely right. Maggie this is Donald Trump reacting to market questions last night. Have a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: President Trump anything in the stock market? Any comment on the DOW?

(END VIDEO CLIP)

ANDERSON: Does his silence does much as his (inaudible) for an American President in any way alter the market?

LAKE: No, listen. The U.S. president or the White House usually had a long standard (inaudible) to not comment on the stock market and you never

see them down here ringing the bell for a reason, they get blame, they can take credit when it goes up, but then blame when it goes down. I think I

would not expect anything from the White House and I think a lot of people would be happy for the White House not to comment on the stock market and

you will any sort of enthusiasm. They are going to talk about fundamentals just like every long-term person is going to talk about fundamentals and

the right to say that they are strong and for all the things they're saying are true. So expect to hear that silence continue especially if they

behave. What I think I want to watch Becky is do they stay silence on the share. It was pick by Donald Trump, but if they start to move aggressively

and are seen to be what is, you know sort of undermining that stock rally he boasted about. Does he stay silence and remain independent or does

Donald Trump take to twitter to comment about Stud policy, that will be interesting, that would have nerve the market. We are going to watch for

that, we are not there yet, but that is where I keep my radar on.

[10:05:24] ANDERSON: Fascinating, Maggie thank you. In the states female America always under the microscope, because it has a gigantic economy the

largest in the world by a mile to the old adage when it stated the rest of the world catches a cold still true. Keep that in mind as you -- look at

this the top American markets the middle European the bottom Asian and you can see drops that was trickling from Monday session in the U.S. all the

way through to everyone else of course the top on the U.S. market, the markets that are open now and going up. The New York, Tokyo, Seoul, Paris,

Jakarta from boom to bust bubble to Bonanza. CNN Money John Defterios has been in the globe and seen it all. So john on your experience, are we

looking at a U.S. led contagion. We can see the markets drop and we know it is awful lot volatility as we look to the past 24 hours also and that

was a really dramatic drop in the U.S. we do still see the easier it will create contagion of your own.

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Absolutely I think it is because of what you're talking about is the weight of the U.S. economy $80

trillion global GDP recorder that is from the U.S., but this is a U.S. driven correction pronouncing the panic buying gold people going into oil

for that very reason. This is a link to the U.S. wage report that came out Friday we have rising wages 2.9 percent the worry here is that Maggie touch

about it briefly is that the federal reserve could be the so-called behind the curve inflations rising to have about interest rates up fast enough and

are chasing inflation that's not what we see in Europe right now. Inflation is running 1.3 percent, the European central bank doesn't need to

move. The unemployment rate and European Union is 8.7 percent it is more than doubled the U.S. average, but because of the United States and you see

the board up again you have the contagion particularly in Asia. Tokyo was down 4 percent, Hong Kong was down 5 percent. Becky these markets Tokyo

was at a record high so that we haven't seen for the last 26 years and it's I had the steepest drop since 2016. It is not a surprise, they have gains

of 25 to 35 percent, Turkey up 30 percent, India 20 percent on Congo 35 percent at some point is going to crack and we are starting to see it right

now.

ANDERSON: It is interesting, look at the European market and we are bringing it up again. Let us get it up on the screen, I was wrong, of

course European markets some of the least are still just about open the loss of hours on trade.

(CROSSTALK)

What we've seen is the sort of increases across European market they had a good run but they haven't had the sort of (inaudible) that we had seen on

this U.S. markets perhaps less of a correction and ready on the nature on European markets. Keeping on the press said briefly, the man in the job

before Mr. Trump, Barack Obama tweeting this out John the wise old balls date from times to mention the stock market, it wasn't par for the cause to

do it alone. That is perhaps a reason and which is pretty much obvious that this point live by the sword and die by the sword. We had a lot of

comment about Donald Trump's insistence that he continue to take responsibility for the outside of these U.S. stock market. Silence on the

downside.

DEFTERIOS: It is interesting and away from the cameras and it is very unusual for Donald Trump. I think it was right particularly by the way and

the Obama administration to point out we try to stay away from the markets. I was suggesting to my commentary earlier on throughout the trading day

that Donald Trump seems to tie very carefully to Wall Street and the success of the White House he thinks are interrelate, so he thinks the Dow

industrials rise of the S&P 500 rise is a credit to him and his policies and now he has provided tax cuts, he has deregulated his promising the

infrastructure spend as well, but we are in Davos together and if I remember having this conversation, he didn't sound like the commander-in-

chief but the salesman in chief, he pulled the clip of that so we can provide some analysis, but just a couple weeks ago he was planning up with

crazy.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The stock market is smashing one record after another and is added more than $7 trillion in new wealth

since my election.

(END VIDEO CLIP)

[10:10:00] DEFTERIOS: So somebody where questioning that $7 trillion evaluation he gave to the rise in the market cap. Also he said that the

market goes up 50 percent of the S&P 500. It was still a very strongly, but it was 34 percent, I think the crux of this going for though he has a

target of 4 percent gross. It begins with an infrastructure bill is another tax bill going, he can get that but the federal reserve can't sit

on the sidelines if you have rising inflation, the federal reserves supposed to be independent and take action.

ANDERSON: And less than 3 percent growth as we saw in the numbers. All right. Before we let you go it is important to point out our viewers that

this markets and they get to the point that they are leasing, you and I had been covering businesses for years now, the fundamentals may be perfectly

fine, but they will be volatility as people trade this market minute by minute if you see a 401K or in a pension fund out there and your concerns

about this volatility, the answer is don't be. Just sit this one out.

DEFTERIOS: It is tough to ride this one, you see a 1600 point of swing in the Dow industrial is hard to shape it, but I think what we have to do is

watch the signals from Jerome. He was sworn in yesterday, talk about a tough job, 4 percent as a correctional Friday, he comes in another 4

percent correction he sworn in not by accident he is going to face the challenge, by the way little historical perspective that happens November

19, 2008 would have a global financial crisis, so it is trial by fire, but the markets you watch to see how independents Jerome Powell plans to be.

We usually say that, the president usually say step in stock markets fall I can remember being on the White House lawn 1987 Ronald Reagan came out and

said there's nothing wrong with the global financial system today and the market rally. We are not at that point, this is not 1987, and it is not

2008 global financial crisis. This is a correction so far.

ANDERSON: On the incomings sledge hammer a bit of (inaudible) because you don't have to do the irrational exuberance narrative that we had back in

the day, when this bubble went on and on and on. All right. John always a pleasure thank you. Before we move on, consider this, the number of major

American TV channels with taking Mr. Trump's speech boasting about the economy line on Monday, but as the markets fell-off so does these channels,

even Fox news which host one of this favorite shows, have a look at this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The future.

UNIDENTIFIED MALE: We are interrupting for breaking news there is a quite a drop happening on Wall Street a massive selloff is happening today.

(END VIDEO CLIP)

ANDERSON: Well let us take a look at that fellow from Wall Street is playing out on Pennsylvania Avenue to the past year we've seen President

Trump that we had been discussing take credit for the Dow's rise many now asking strategies somewhat backfiring. CNN Abby Philip joins us now from

the White House. White House messaging on what was this market sell-off clearly we had seen this market popping to positive territory at this point

what is the buzz around the White House?

ABBY PHILIP, CNN POLITICAL ANALYST: Well Becky the White House is cautioning that everyone should just keep calm at least for the time being

so interesting considering what you just pointed out this is not been a president who has been shy about touting the stock market as it's been

rising to these high levels in historic levels and now we've been hearing assessing radio silence from President Trump. You know it is unusual but

probably appropriate considering and I think the White House right now is threading a very fine line, don't say too much in a moment like this

perhaps, a correction that could potentially spook the market and just wait for it to unfold there saying the fundamentals of the economy are very

strong. Wages are up on the interest rates are rising as a sign of a healthy economy there saying just hold on and I think perhaps this morning

some of the rebounding and the stock market is a lot of evidence that that perhaps there right. This is going to be something that can go up and then

down and maybe back up again. We just have to wait and see.

ANDERSON: Which will give the White House an opportunity to consider other issues which are watch this week?

PHILIP: Well it is all about this Russia probe, I mean today the White House has acknowledged that President Trump has received the Democratic

memo which is a rebuttal to the Republican one that came out last week and he has five days now to decide what to do with it. Should he block it,

should he redact parts of it or release it? The White House say it is going to put it through a process and that process is going to be the same

as what he did with the Republican memo.

(BEGIN VIDEO)

PHILIP: Lawyers for President Trump are urging him not to agree to an interview with special counsel Robert Mueller. Partially out of concern

that the president you has a history of making false statements and contradicting himself may incriminate himself with investigators according

to the New York Times. But Mr. Trump has insisted that he is eager to speak with Mueller.

[10:15:00] TRUMP: There is no collusion or whatsoever. There is no obstruction whatsoever and I'm looking forward to it, I have to say the

subject my lawyers but I would love to do it.

PHILIP: CNN reported last week that Mr. Trump's attorneys are arguing that Mueller's team has not met the high threshold they believe is necessary to

interview a president in person. The Russia probe hanging over the administration as the president decides whether or not to publicly release

the Democratic memo unanimously approved by the House intelligence committee last night.

The Democratic rebuttal challenges the accuracy of the declassified GOP memo crafted by Committee Chairman Devin Nunes, but accuses the FBI of

surveillance abuses.

ADAM SCHIFF, (D) CALIFORNIA: We want to make sure the White House does not redact our memo for political purposes and obviously that's a deep concern.

PHILIP: The president attacking ranking member Democrat Adams Schiff ahead of Monday's vote calling him one of the biggest liars and leakers in

Washington, but praising Nunes as a great American hero. Entering the speech in Ohio Mr. Trump gloating about Nunes' memo which he falsely claims

vindicates him in the Russia investigation.

TRUMP: We did catch them in the act they are very embarrassed they never thought their way to get caught, we caught him, and they are like the great

sleuths.

PHILIP: Democrat Mike Quigley continuing to press Nunez about whether his staff coordinated with the White House in drafting the GOP memo.

UNIDENTIFIED MALE: I was in my memory when answering questions for the site having my feelings hurt and he didn't answer the question.

PHILIP: Nunes refusing to answer questions from CNN.

UNIDENTIFIED MALE: Did you vote for the Democratic memo?

PHILIP: Before again appearing on Fox News to tout his memo.

DEVIN NUNES, REPUBLICAN CHAIRMAN OF THE HOUSE INTELLIGENCE COMMITTEE: Political dirt was used by the FBI and they knew it was political dirt to

open a counterintelligence investigation into the other campaign, that's what people, I just can't believe that people on the other side are not

furious about this.

PHILIP: President Trump also raising eyebrows with this rebuke of Democrats for not applauding during his State of the Union speech.

TRUMP: They were like death and un-American, un-American. Somebody are treasonous I mean I just, why not. Should we call that treason, why not?

I mean I certainly didn't seem to love our country very much.

(END VIDEO)

PHILIP: Well Becky, the president is fighting political battles on all fronts will he talked special counsel Mueller, will he release that

Democratic memo, but there is also some legislating to do he has to deal with spending bill this week and also immigration. He is doing all that

while publicly attacking Democrats on the other side of the aisle.

ANDERSON: Abby Philip from the Washington. Thank you Abby. Still to come tonight Winter Olympics just three days from beginning, all the focus is on

diplomacy. The latest ahead of the so-called peace games after this.

(COMMERCIAL BREAK)

[10:20:51] ANDERSON: Let us look at some on that big board. It is less than an hour since U.S. stocks open after Monday's big sell-off. A record

of 1 percent higher at present but let me tell you that market is in and out of positive territory and since the open so not really settling down as

of yet, the rest of the trading day is before us. We will keep an eye on that for you.

Athletes and officials are arriving in Pyeongchang, the city is opening ceremony at the Winter Olympics of course on Friday. A very carrying on

140 North Korean musician is already in the South on Wednesday a larger North Korea delegation is set to arrive includes more than 200 people who

will cheer for North Korea athletes competing in the games, but organizers are dealing with a problem. A virus outbreak to run into Pyeongchang

security detail $1200 guards had been pulled from duty and dozens are in hospital. The South Korean military has deployed 900 soldiers as back up

security. Amid all of this it seems the competition shouted somewhat by the politics surrounding North and South Korea, CNN Ivan Watson is in

Pyeongchang and he joins us now. The U.S. Vice President Mike Pence arriving today, what is the messaging so far and what are this quite

frankly very political gains Ivan?

IVAN WATSON, SENIOR INTERNATIONAL CORRESPONDENT, CNN: Yes he just landed in Japan a couple of hours ago and on route to Alaska he made comments

where it took a very tough line against the North Korean regime and its participation in the winter Olympics, take a listen.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENTIAL OF THE UNITED STATES: We will be telling the truth about North Korea at every stop, will be ensuring that whatever call

for cooperation that is existing between North and South Korea today on Olympic teams does not cloud the reality of a regime that must continue to

be isolated by the world community and it must be brought to a place where it ends it provocations and ends its development and possession of nuclear

weapons and ballistic missile. With regard to any interaction with the North Korea delegation I have not requested a meeting, but we will see what

happens.

(END VIDEO CLIP)

WATSON: That is a really interesting concluding point that he made there we'll see what happens, because that was also echoed by the U.S. secretary

of state Rex Tillerson something to that effect out which suggests that they're still leaving the door open to the possibility of some kind of

communication here at the opening of the junction Olympics in just a few days' time and we know that Kim Yong-nam the ceremonial head of state of

North Korea will be leading the North Korean delegation to the opening ceremony here at these games so that something to watch closely. Already a

number of North Koreans have arrived there 22 athletes on the ground in the final days of training you mentioned this ferryboat that landed with 140

member orchestra they were greeted on the wharf Becky by anti-North Korean protesters holding up defaced portraits of the North Korean leader Kim

Jong-un, we had seen a lot of activity by these more conservative anti- North Korean South Korean demonstrators in other cities around the country in recent days and there's another very large delegation expected to cross

the border by land on Wednesday which will include more than 200 cheerleaders and will include a tae kwon do demonstration team, but as for

the government the state news media has fired back at Washington specifically at President Trump in his State of the Union speech in which

he singled out North Korea for its dismal human rights record of the case in a state news agency used very insulting terms calling Trump an old

lunatic and saying quote he cannot deodorize the nasty smell from his dirty body woven with fraud sexual abuse and other crimes, so maybe there is an

opening for diplomacy, but there's still an awful lot of tough talk going between Washington and Pyongyang, Becky.

[10:25:21] ANDERSON: For sure. Ivan Watson in Seoul for you this evening. To South Africa now where the speaker the national assemblies in the state

of the nation address by President Jacob Zuma is being postponed. Mr. Zuma once again facing pressure to resign over allegations of corruption. Top

leaders of his party is scheduled to meet on Wednesday to decide he's political feature. Let us bring in CNN David McKenzie joined us, excuse me

David. This does seem to be extraordinary set to cancel a states of the nation address. Why do they do that?

DAVID MCKENZIE, CNN CORRESPONDENT: Well Becky it is extraordinary this is one of the major political events of the major political events and really

toss the way for the government of the parliament is a way normally for the president to step their authority on political life on South Africa and now

as you say they postponed this. They haven't given a date yet and it is because Jacob Zuma faces these growing course all know people trying to

push them out including many within his own party. He faces a national executive committee meeting of the ruling AMC on Wednesday. I think

because it was so close before the state of the nation that is one of the reasons that they delayed it and also they said to avoid seems like this

that we saw on 2017 in other years of where there was fighting that broke up between opposition and security within parliament. I think the AMC

worries this would be a humiliating experience for President Zuma does show that the president is in a very tenuous situation politically, Becky.

ANDERSON: David in Johannesburg for you on what is an extremely important story there. Thank you David. Just ahead will get another check on this

stock markets. Plus what Mr. Trump has to say about their recent performance, after this.

[10:30:00] (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The stock market has smashed one record after another. The United States is doing fantastically well,

better than we've done in decades. The stock markets are incredible.

You're seeing what's happening with the stock market. People are appreciating what we're doing. The stock market is way up again today and

we're setting a record laterally all the time. The stock market is at an all-time high -- all-time high. We're at all-time high. All-time high.

(END VIDEO CLIP)

BECKY ANDERSON, CNN ANCHOR: Almost nonstop for all this time in office, the American president taking the credit for American stocks roaring, up,

up and away.

But 24 hours ago, at the same time, this was happening, on the left, Donald Trump talking up how well the economy is doing, and on the right, the Dow

Jones, an extremely important metric for his country free falling its worst drop points at least in its more than its 100-year history, wiping out its

gains so far in 2018.

Well this is the Dow Jones right now. Let's have a look at this. The market has been swinging in and out of positive territory, just dipping low

at this point but it tells CNN, there's no real reason to panic.

The Dow has seen much worse drops, certainly in percentage terms. But in taking so much credit for the surge and then seeing to shrug off the drops,

Mr. Trump helped turn in mostly economic story into a political one.

Well, right now, let's get you back to the New York stock exchange where, Maggie Lake, is back with us live, and an hour or so into the trading day.

What's the feeling there, Maggie?

MAGGIE LAKE, CNN CORRESPONDENT: The feeling is that this is just beginning, Becky. We have seen from the open and just a short time we've

been trading, swings of almost 1,000 points and every time I look up, we're in a different place by hundreds of points.

So there is a huge amount of volatility here. One trader just walked past and said it's like driving up that road in San Francisco that zigs and

zags. Everyone is keeping their eyes firmly on the screen.

But you know, it's interesting, they're here and they're focused on the sort of short term versus the long term. We talked about it before. And

although we are seeing the years gains erased, the entire market rally that we've experienced is not.

We are still up a huge amount if you put your money to work right around the time of the election, and when you look at the underlying fundamentals,

they are still positive. Part of why you're seeing, this rethink is because wage growth is strong, unemployment is lower than it's been in

years.

So that fundamental story hasn't changed. What's going to happen to interest rates, that is the key and those two sides have to come together.

We are going to watch this market all day and I'm going to tell you right now, it's going to be the last hour of trade that is going to matter the

most and no one here is willing to make a bet yet on just where we stand.

ANDERSON: Maggie Lake is on the floor of the exchange. More from Laggie (ph) -- from Maggie, as the day continues. Thank you, Maggie.

So the economy, a bright spot, the U.S. president often calls his success. And the dark cloud hovering over the administration, well, of course, that

is the Russia investigation. All of this swirling around Washington where we can find CNN white house reporter and friend of this show, Stephen

Collinson.

Stephen, before we talk about other things, still nothing on what are these wild swings in stocks from the U.S. President, perhaps we shouldn't be

surprised, right?

STEPHEN COLLINSON, CNN CORRESPONDENT: Right. This in many ways is a punch that Donald Trump walked into after, as you showed just there,

repeatedly and incessantly claiming credit for the, you know, great gains in the stock market over the last few years and particularly since he was

elected.

You know, the president hasn't made any distinction between the economy and the stock market and those are two different things. You know, the

economy is still as, Maggie, was saying doing very well, excellent job growth, rising wages.

[10:35:00] And in many ways these are things that people have waited to see for a long time. So, politically and going into the midterm elections

where the economy in the central argument of Trump and the Republicans, things still look to be OK.

But you know, the fact remains if the president takes so much credit for rising stocks, he is going to come in under fire when the market goes down.

And that's the reason why most presidents stay away from making predictions and claims about the stock markets just because, you know, like stocks,

political fortunes that are linked to stocks can go down as well as up.

ANDERSON: And what goes up must come down they say. Away from the markets then, and we are, of course, keeping an eye on those market stocks

down about two-thirds and one percent as we speak. But as I said, they've been up and down in positive territory today.

Stephen, Mr. Trump's lawyers are advising him not to be interviewed by Special Counsel Robert Mueller. Why? Well, they seemed to be worried he

will commit perjury. That is according at least to the New York Times.

Well, CNN reported the president's attorneys felt Mueller's team hasn't met the threshold for a face-to-face interview. This really won't -- a debate

has been going on for months. Mr. Trump, himself, said he wanted to speak with Mueller and would do so under oath. What's your take on this?

Is Mr. Trump now less likely or more likely to talk to Special Counsel Robert Mueller?

COLLINSON: I think, you know, just as the president has shown, he's completely unpredictable and it's unclear whether he will follow the advice

of his lawyers. I think this issue we've been talking about these dueling memos over the last few weeks in the Russia investigation.

But this issue of whether Trump will testify to Robert Mueller is the next big thing to watch in the Russia investigation. Now the reason why

Trump's lawyers don't want him to testify to Robert Mueller is because the Special Counsel has employed one of the most high-powered legal teams we've

ever seen put together in Washington.

And the president has a record of boastful talk, telling untruths. He can get himself into all sorts of trouble. It's often, you know, in these

Washington investigations, it's not necessarily the underlying issue that gets someone into trouble, it's whether they tell the truth to a Special

Counsel or a special prosecutor.

So there are all sorts of reasons why if you're a lawyer, you would think, well, it's not very smart for the president to go and pull himself through

that.

The downside of all that is, will Mueller then try to subpoena the president to testify before a grand jury, that would set up a big

constitutional clash in Washington that could go all the way to the Supreme Court, drag this on much longer, perhaps until the midterm elections in

November.

And it would also raise this fundamental question, is the president has said all along there was no collusion, there was no obstruction of justice.

So why isn't he willing to go before the special prosecutor and tell the truth and clear his name? And that is a difficult political question.

You have got a legal conundrum here and you have got a political conundrum that the president is facing.

ANDERSON: All right. On another note, Mr. Trump criticized Democrats for not applauding during his State of the Union speech last week. Have a

listen to this.

(BEGIN VIDEO CLIP)

TRUMP: They would rather see Trump do badly, OK, than our country do well. That's what it means. It's very selfish. Even on positive news --

really positive news like that, they were like death and un-American. Un- American.

Somebody said treasonous. I mean, yes, I guess, why not? You know, can we call that treason? Why not. I mean, they certainly didn't seem to

love our country very much.

(END VIDEO CLIP)

ANDERSON: Well, a pretty strong use of words there. But have the Democrats responded not really out of the norm, is it? Stephen.

COLLINSON: Right. And think this gets to a trend of the Trump presidency. You have to sort of pick what you're going to get outraged

about.

Now if you see Donald Trump as someone with deeply autocratic tendencies, you're going to find that kind of remark troubling because it suggests that

he views anybody that does not support him as un-American and un-patriotic.

But put it in the context of that rally and Trump's character, I don't think anyone immediately thinks that the president is going to go and round

up people that didn't clap at his State of the Union Address.

So I think this gets to the point of the president says so many things everyday that sort of nudge against norms and make people outraged, you

have to sort of choose which is the real substance and which is just part of the crazy world around Donald Trump that we've seen ever since he was a

candidate.

[10:40:08] ANDERSON: We live in interesting times. Stephen Collinson, friend of our show, always a pleasure having you on, out of Washington,

viewers, for you. And you might have missed this during Monday's market meltdown.

But Donald Trump launched the 2018 midterm election campaign. Head over to our website CNN.com. There, Stephen, breaks down Mr. Trump's visit to

Ohio, and electoral bell weather state and see what else he said to try to fire up his base of voters there at CNN.com.

Live from Abu Dhabi, you're watching Connect the World. I'm Becky Anderson for you. Coming up, Poland revisits a dark chapter as it's poised to

outlaw any suggestion it's partly to blame for the holocaust. It could say the country is rewriting history, more on that, after this.

(COMMERCIAL BREAK)

ANDERSON: You're watching Connect the World. I'm Becky Anderson in the UAE. It just before quarter to 8:00, you are very welcome. All this hour,

we are following the early trading on Wall Street.

Let's check back in those markets down about 0.6 percent to one percent, two-thirds of one percent or so. And 150 odd points lower in the market.

You can see it bobbing around a little bit, dropping off a bit.

We've seen it as much as one percent higher here. So it's very volatile in and out of positive territory. Trade is playing this market much of the

advice that we've been hearing, as for the retail investors stay out and sit on these sidelines as it were.

As this market does its thing. Of course, we've seen a couple of sessions of significant losses on this U.S. stock market, the contagion, and

obviously, taking hold in the Asia markets, of the European markets as well. But these markets just leveling out it seems today in its early

morning trade at least Tuesday morning.

Well, a huge controversy playing out in Poland over the country's legacy from the holocaust. The president says he will sign a bill that will make

it a crime to suggest that Poland was in any way complicit in the holocaust.

Anyone who does so, well they could go to jail. Poland is where the Nazis ran camps such as Auschwitz, of course, during the occupation. This bill

is being reviewed by constitutional panel. And Israel for one, is hoping that it will be changed.

CNN's Ian Lee, following that part of the controversy from Jerusalem and our Melissa Bell is in Paris on the Polish point of view. Which is what

from Warsaw? Melissa, what's the justification of this law and why so sensitive?

MELISSA BELL, CNN CORRESPONDENT: Well, Becky, for a long time, the idea this phrase, Polish death camps, has been something of a sore point -- soft

spot in Poland.

[10:45:05] It excites a lot of anger and you can understand why. Poland, as the Polish government points out, at the moment and around this bill,

the Polish government and Polish state, since he sees to exist when the country was annexed by Germany in 1939.

Therefore, the logic goes, it cannot be blamed for the camps that were built on its soil during the occupation, unlike countries like France and

other European countries, there was no collaborationist movement, there was no collaborationist government.

Now on the other hand, of course, there are those who say, be careful, there were of course, individuals who were complicit in the Nazis crimes.

And they need to be able to be held to account.

The point of this bill, though, is that when you look at it carefully, it's does clearly that it is not about individual complicity in those crimes, it

is about accusations that the Polish state or the Polish government was complicit.

And you sense in what the Polish president announced today, an attempt by referring this to the constitutional court, really to appease those worries

that have been expressed by Israel and by the United States to say, look, we're going to be very careful and make sure that this meets a number of

our own criteria, especially with regard to do with things like the remembering of the survivors.

And also the question of the sentencing and how that will work. And yet, the polish president has signed this bill and that's caused a lot of

controversy in a number of different countries. Becky.

ANDERSON: This is on this story from Warsaw. And what's the Israeli response?

IAN LEE, CNN CORRESPONDENT: Obviously, Becky, this is a very sensitive issue in Israel, 6 million Jews died in the holocaust and many young

students, when they finish up their studies before they move, on a lot of them go to Auschwitz, which is described by them as being a very moving

time in their lives.

And we heard -- we have heard condemnation and concern. We heard from Israel's Minister of Education, Naftali Bennett. He was actually scheduled

to go to Poland. He was invited by the government and the invitation has been rescinded because he said he was going to speak truth.

He said that the bill -- of the bill that the blood of Polish Jews cries from the ground no law will silence it. The government of Poland canceled

my visit because I mentioned the crimes of its people, I'm honored.

Now we have heard a bit more subdued tones from the foreign ministry. They expressed reservations, they say they're going to wait to see what comes of

the court's ruling in Poland about how to move forward.

They say that there is a responsibility with Israel and Poland to preserve the history and to study the holocaust. We also heard from Israeli Prime

Minister Benjamin Netanyahu, -- he was speaking this week at Yad Vashem, that is the holy Holocaust Museum here in Jerusalem. And he said that it

is important to preserve the truth. Becky.

ANDERSON: Ian Lee, is in Jerusalem for you. Melissa is in Paris. We are in Abu Dhabi. Thank you, guys. This is Connect the World. Lots more,

ahead on our top story this hour, the state of U.S. markets after the sell- off, take a look.

We are just five points into positive, as I say it, we change. We're about even on the U.S. stock, it have been a chaotic start to this trading

session, very, very volatile. And we are only an hour or so in. More on that after this.

[10:50:00] (COMMERCIAL BREAK)

ANDERSON: Ten to 8:00 in the UAE. You are watching CNN. This is Connect the World with me, Becky Anderson. Now, still too early to tell what will

happen on Wall Street this Tuesday, after what was Monday's record drop.

More than an hour and it's been up, it's been down, it's been down, it's been up. Pretty much a very volatile performance, is what we can call it.

Here is what things stand at present. Do not rely on the market to stay where it is.

Returning to what are the top stories today. We've been hearing about how politics is intruding on play at this year's Winter Olympics, including

with a rare performance by North Korean art troop later this week. Musicians were handpicked by Kim Jong-un to spread a very specific message.

CNN's Will Ripley reports.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN CORRESPONDENT: When North Korean popstar, Hyon Song-wol made her big entrance in South Korea, the media captured her every move.

Hyon rose to fame as leader of the Moranbong Band, a group that has been called North Korea's Spice Girls.

Their music and mini skirts, Avant-garde by Pyongyang standards, a fusion of pop and propaganda. North Korean leader Kim Jong-un reportedly

handpicked the girl group himself around five years ago.

In 2015, the Moranbong Band made headlines, abruptly canceling a performance in Beijing as nuclear tensions escalate. Hyon is believed to

be a married mom in her late 30s or early 40s, and one of the most influential women in North Korea -- a high-ranking member of the ruling

Workers Party, a colonel in the Korean People's army.

She was even a delegate at inter-Korean talks in January, and is set to lead a group of North Korean musicians performing at the National Theater

of Korea in Seoul.

KIM CHEOL-WOONG, NORTH KOREAN PIANIST (through a translator): As a female musician, she's at highest level, says pianist Kim Cheol-woong.

RIPLEY: Kim knows what it's like to be a lead musician in an Asian music like everyday is tightly controlled. He attended the best music school in

North Korea. Later, given the rare opportunity to study music abroad. Before you left North Korea, have you ever heard jazz or pop, or any other

kinds of music?

CHEOL-WOONG (through a translator): If you're caught performing those types of music, he says, you will end up in jail.

RIPLEY: Kim says he was caught playing a forbidden western love song. In North Korea, love songs are about the leaders. Songs of praise are for the

party. It was actually music that made you want to defect?

CHEOL-WOONG (through a translator): After studying abroad, I realized the stiffness of North Korean music, he says. I wanted to play music and

express myself freely.

RIPLEY: But, Kim, says he still listens to North Korean music. And still misses his home town. Do you hope to go back to Pyongyang and perform

someday? I wished, he says.

CHEOL-WOONG (through a translator): I live everyday, believing that day will come.

RIPLEY: He knows music, like sports, has the power to bring people together, even when their worlds could not be farther apart. Will Ripley,

CNN, Seoul.

(END VIDEOTAPE)

ANDERSON: Right. Just in time for your Parting Shots this hour. For 28 years, the Berlin wall stood menacingly, dividing a city tearing loved ones

apart. People died trying to cross it. Well, all that is now history and it's increasingly distant.

The wall now has been gone longer that it stood. It came down in 1989 and with it, went to Cold War divide between communism and democracy,

repression and freedom. When it came down, it brought unparalled celebrations.

[10:55:00] Well now, what's left behind the wall in the 150 kilometer border fence, an observation tower where you can look down on the remnant

of something that forever change the German political, economic and social fabric. Amazing.

The U.S. stock markets might be volatile but our reporting is rock solid, so count on Connect the World in our Facebook page,

Facebook.com/CNNconnect, for music gets as real, well as it gets. I'm Becky Anderson.

This hour, we have been connecting you all extraordinary while the global stock market, a roller coaster ride at present, still up and down.

A political mess in South Africa and the Olympic Winter Games, set to take place on what can be a very tense Peninsula. We will be back tomorrow.

From the team here in Abu Dhabi, those who are working with us in Atlanta and in London, thank you for watching. You are at the International Desk,

next, from CNN.

END