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CNN International: Trump Threatens to Withhold Aid from Jordan & Egypt if they do not Agree to take in Palestinians from Gaza; Poland Calls on Trump to Remove Cap on Chips; UAE Signs Agreement with France to Develop Data Center; World Braces for Trump's Next Tariff Move; Real Madrid Face Off Against Man City in Blockbuster Clash. Aired 9-10a ET
Aired February 11, 2025 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
BECKY ANDERSON, CNN HOST, CONNECT THE WORLD: Well, it's 09:00 a.m. in Washington, it's 04:00 p.m. in Kyiv, and it is 06:00 p.m. in Dubai. It is
February the 11th, and for those of us living in the UAE, that means it's show time at the World Government Summit.
The annual gathering designed to help make governments of today smart and more efficient and more responsive tomorrow. Well, you are watching a
special "Connect the World". I'm Becky Anderson. And believe me when I say, no matter, the discussion here at WGS, one man's name seems to dominate.
Less than a month into his presidency, Donald Trump is shaking things up state side with a flurry of executive orders. A sweep of financing at
federal agencies, threats of trade wars, and so it goes on. Three weeks in as team Trump overhauls government, the U.S. could be facing a
constitutional crisis.
Well, we will get to all of that in the next two hours, also center stage for the U.S. President. And squarely in focus here in Dubai, the
opportunities and challenges for governments and businesses as the race for AI dominance heats up. We're here all week, and we'll be speaking to the
key players and leaders at the helm of our rapidly changing world.
First up, we get back to Mr. Trump's most recent comments, and amid all the global change, quick check on the stock market in New York. This opens this
hour, of course, markets indicating a lower open on Wall Street as investors grapple with the latest tariff salvos, together with some
caution, ahead of testimony from the Fed Chairman and new inflation data.
More in about 30 minutes time. Well, we start with the U.S. President trying to assert authority over two of the world's biggest hot spots,
Ukraine and Gaza. In just a few hours, Donald Trump welcomes Jordan's King Abdullah to the White House for what could be very sensitive talks about
the future of Gaza.
The president calling for a U.S. takeover of the enclave and a redevelopment of the bombed-out strip, and naming Jordan as a country that
could play a big part in that effort, or risk losing U.S. aid. Well, this meeting happening amid President Trump's latest comments demanding Hamas,
free all hostages held in Gaza by Saturday.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Well, I would say this, and I'm going to let that, because that's Israel's decision, but as
far as I'm concerned, if all of the hostages are returned by Saturday at 12 o'clock, I think it's an appropriate time. I would say, cancel it and all
bets are off and let hell break out.
(END VIDEO CLIP)
ANDERSON: Right, that is Donald Trump. Jeremy Diamond connecting us then this hour from Tel Aviv, there is a lot to unpack. Let's start with King
Abdullah's visit to the White House. He and Trump now have diametrically opposed views on Gaza's future. How do we expect this meeting to go?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, I think a lot of it is going to have to do with what King Abdullah comes to the table with. I
think it's become quite clear that, yes, while President Trump has been adamant about this idea of a U.S. takeover of the Gaza Strip.
The permanent displacement of more than 2 million Palestinians who live there, and having them instead reside somewhere in Jordan or -- and, or, I
should say, in Egypt. It's also quite clear that the president is using this as somewhat of a maximalist idea to see what else can be generated in
the region in terms of ideas to address the issue of rebuilding Gaza, to address the number of Palestinians who live there and where they will go as
the strip is being rebuilt.
And so, I think a lot of it is going to hinge on what King Abdullah comes to the table with, and whether or not he has some kind of alternative
proposal for the president. I will also be watching to see whether the president actually makes good on his threats to cut off billions of dollars
in aid that Jordan and Egypt receive if they are not amenable to his idea.
[09:05:00]
And so far, we have seen, of course, that they very much are not and that's because Jordan in particular, has domestic political considerations as
well. More than half of its -- population are refugees were distended from Palestinian refugees stemming from the 1948 war and onwards. And so, he
also has a domestic political street to listen to, in addition to hearing out the President of the United States.
ANDERSON: That's OK. That meeting later on, today. I am learning that mediators are engaging with Israel and Hamas to try to solve what are these
current issues, after Hamas said it is delaying the release of additional hostages. We've got to ask at this point, where does all of this leave the
ceasefire, and indeed, the potential further hostage releases at this point?
DIAMOND: Well, Becky, I think it's clear that this is the most fragile moment to date for this ceasefire between Israel and Hamas, and that's
because you look at just the number of issues that have emerged over the course of the last 72 hours or so, you know, you have everything from the
images of those three frail hostages emerging from 16 months in captivity, which have drawn a renewed sense of urgency among the families of the
hostages and so many here in Israel for the release of all the remaining hostages.
You add into those the president's proposals regarding Gaza, you add into that his new ultimatum for Hamas to release the hostages by Saturday. And
on top of that, of course, you have other domestic political forces at play in Israel that are urging the prime minister to go back to war and to
continue to fight Hamas in Gaza.
And so, when you put all of that together, it puts this ceasefire in a very, very delicate position. The fact that the mediators are working to
address it, the fact that Hamas made this threat about delaying the release of the three hostages five days beforehand indicates that there is still
some possibility for these issues to be resolved.
We know the Israeli Prime Minister has been in a security cabinet meeting today, discussing all of this, Becky.
ANDERSON: And more to come. Jeremy, good to have you. Thank you. Well, in a major paradigm shift, Donald Trump seems to be turning his back on U.S.
policy when it comes to Ukraine, saying in a Fox News interview on Monday that the war-torn country may or may not be Russian someday.
More comments come as Mr. Trump said he told Kyiv he wants something in return for ongoing U.S. assistance. Have a listen to this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Ukraine though you think you can get a deal, do you keep sending American weapons until you do.?
TRUMP: No, what I'm saying is the following, they have tremendously valuable land, in terms of rare earth, in terms of oil and gas, in terms of
other things. I want to have our money secured, because we're spending hundreds of billions of dollars. And you know, they may make a deal, they
may not make a deal.
They may be Russian someday, or they may not be Russian someday, but we're going to have all this money in there. And I say, I want it back. And I
told them that I want the equivalent like $500 billion worth of rare earth. And they've essentially agreed to do that, so at least we don't feel
stupid. Otherwise, we're stupid. I said to them we have to get something we can continue to pay this money.
(END VIDEO CLIP)
ANDERSON: Well, let's just do a deep dive on this. Our Chief International Correspondent, Security Correspondent, Nick Paton Walsh, following all of
this. Good to have you, Nick. Trump, suggestion that Ukraine could be Russian one day would up end U.S. policy of course. Tens of thousands of
Ukrainians have died fighting to not be Russian at this point. How enormous is that statement? Let's just start there.
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Yeah, look, I mean, he sounds off the car foremost like he's suggesting, you
know, they could be Russian one day, they could not be Russian one day, essentially, as though that's kind of leverage in deal making. It's unclear
if the deal he refers to as a wider peace deal.
That's currently in the hands of his negotiators, unclear how far they're getting, or if it's a wider deal about rare earth metals that he believes,
there's potentially half a trillion dollars' worth in Ukraine. Not entirely clear if those numbers will hold in time. But it's shocking, I think,
because it's already been adopted by the Kremlin Spokesperson, Dmitry Peskov, as essentially echoing what have been their talking points for a
while.
They've maintained the 20 percent of Ukraine that they've occupied through brutal military force killing thousands of civilians. They say desperately
wanted to be Russian, and is inescapably now part of Russia. I paraphrase there. So yeah. I mean, you know, remarkable to see the occupant of the
White House, however flippant that particular remark may have been meant at the time, it is still coming from the President of the United States,
Becky.
ANDERSON: Nick, I spoke with the Polish President Duda earlier today here at the World Government Summit. We talked about Trump's interest in
Ukraine's rare earth minerals. Have a listen.
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(BEGIN VIDEO CLIP)
ANDRZEJ DUDA, POLISH PRESIDENT: Please remember that President Donald Trump, first and foremost is a businessman, and this is the point that I
always repeat in all the discussions, because he has got a business-like style of conducting politics. He's got a business-like style of speaking
about politics.
And not all politicians like that. They are not used to it is a slightly different kind of language and slightly different methods of action. And he
took immediately a business-like approach to this. He put it clearly. The United States has already provided huge assistance to Ukraine. It is true.
Nobody else has helped Ukraine so much as the United States, and it should be stressed and highlighted, but it is also important please remember that
the first who helped Ukraine was nobody else but precisely Donald Trump. We are speaking about the budget for the Pentagon in 2020, when he was still
serving as president in his first tenure.
And already then, he was providing military support to Ukraine, when nobody really was thinking seriously about the war and about Ukraine having to
defend itself. But today he's saying, OK, what will America have from that? Are you able to offer anything to America? Well, this is life, and it is
hard to wonder, to be surprised that it is also the approach of the President of the United States.
(END VIDEO CLIP)
ANDERSON: Nick, the Polish President there suggesting this Trump rhetoric might all be part of the president's hard bargaining. He may have a point.
How does that go down, though, in the country of Ukraine?
WALSH: I mean, look, we don't have running commentary on every sort of inflection of Trump's rhetoric here, but I think there's a disparity when
you're dealing with a life and death conflict of -- hundreds dying every day. Frankly, by Russian estimates, sorry, Western estimates of Russian
casualties, 1500 max, dead and injured on the front lines alone, civilians dying in large numbers every week.
To use the rhetoric of the boardroom negotiation to try and progress that is going to leave many people deeply unsettled, and it also doesn't
particularly fit with the stability of what you might many refer to as sort of America's world order at the moment, where they've been the dominant
power for many decades.
And so yes, it may well be that he throws these ideas around of maybe you'll be rushing one day. Are you going to strike a deal or not? He, on
Friday, threw out the idea that he'd meet Zelenskyy at some point this week. It doesn't seem like it's going to happen at this particular stage.
That sort of casual way of dealing with something of this severity and complexity may potentially yield fruit down the line. We simply don't know,
but in the short term, I think it gives the idea to the Kremlin, who are very serious, very studied, very savage, very willing to inflict pain on
the -- people to achieve what they want. Perhaps makes them look less serious than potentially, Ukraine's allies would like, Becky.
ANDERSON: Briefly Nick, and Donald Trump has been talking about a negotiated peace, and I talked to President Duda about what that might look
like, and our viewers will hear that next hour, whether that includes Ukraine, for example, dropping its ambition for NATO membership, dropping
the idea that it needs to retrieve land that Russia currently occupies.
Given the sources that you speak to and the world that you work in, and you're just back from Ukraine. What chance of a negotiated peace mediated
by Donald Trump anytime soon?
WALSH: OK. It's incredibly hard to tell. We simply don't know if there is a more sophisticated, nuanced negotiation happening behind closed doors, that
more advanced. But we do seem to see reticence from the Kremlin certainly, to talk about how there may be progress, or even acknowledge the phone call
that Donald Trump says he's had with President Vladimir Putin.
You've got to remember, Becky, that Russia is winning on the front lines now to horrific costs and very slowly, but they're getting what they want
out of fighting. And so right now to suddenly decide to stop that fighting makes no sense on their behalf. Ukraine, on the other hand, is losing,
certainly, maybe some occasional setbacks for Russia on the battlefield, but they're not seeing the ground they need being held.
And they're certainly experiencing man power problems. So, the clock is not ticking in Kyiv's favor right now.
ANDERSON: Right.
WALSH: And the longer this -- negotiation process or lack of a peace deal comes through, the more likely it is to play to Moscow's favor.
ANDERSON: Understood.
WALSH: So yeah, I think it's a tough -- for something to happen soon, if even further down the line.
ANDERSON: Nick Paton Walsh out of London for you today, just back from Ukraine. Thank you, Nick. Well, much of NATO's focus is on Ukraine right
now. But Poland, a member of course, is also caught in the middle of competition between the U.S. and China in its final weeks.
[09:15:00]
The Biden Administration issued new export restrictions on U.S. made chips that power artificial intelligence, while Beijing is the clear key target.
The move impacting countries across the globe because it limits their access to computing power, many are America's closest allies, and some were
exempt, Poland, though not among them. Well, Mr. Duda told me he hopes President Trump will reconsider.
(BEGIN VIDEO CLIP)
DUDA: My request to President Trump is very simple in this regard, Mr. President, please change the decision taken by President Biden, by his
administration in the last days of his tenure, because this is a wrong decision which harms us as allies of America, which harms us as NATO member
state, which from our perspective, as responsible and loyal ally to the United States.
We have shed blood in Iraq together with the U.S. soldiers, our soldiers, together with U.S. soldiers were shedding blood and were killed in
Afghanistan. We immediately stood by them upon their call. This decision is not understandable to us. It puts us in a position of an ally of a lower
category, and we cannot see any grounds for that.
(END VIDEO CLIP)
ANDERSON: Right. The Polish President there speaking to me earlier, well, AI has dominated discussion here on day one of the World Government Summit.
It's dominated discussion friendly here for years, the host. The UAE, has poured billions of dollars to position itself as a world leader in AI.
Just last week, the Emirates signed a $30 billion agreement with France to develop a giant data center there. Plus, it's also been reported that
OpenAI CEO Sam Altman was here in the UAE to discuss fundraising with the Abu Dhabi Investment Group MGX. That group a significant investor in Mr.
Trump's AI strategy and his new Stargate project.
Well, rattling the AI scene at present, Chinese start up DeepSeek, offering an AI model that competes with top tier U.S. companies at a fraction of the
cost. Raising a critical question, is the massive spend we've seen thrown at developing AI infrastructure really necessary?
(BEGIN VIDEO CLIP)
OMAR AL OLAMA, UAE ARTIFICIAL INTELLIGENCE MINISTER: Was it expected, in your opinion? Like, did you actually think that this is going to happen.
It's going to happen this fast and, in this way, or were you caught by surprise as well by what DeepSeek was able to achieve?
ROBIN LI, CEO OF BAIDU: Basically, my view is that innovation cannot be planned. You just don't know when and where innovation comes. What you can
do is just to foster an environment that is conducive to innovation.
(END VIDEO CLIP)
ANDERSON: Well, that was the Baidu CEO speaking with the UAE Minister for artificial intelligence, Omar Al Olama. Baidu CEO, of course, is Robin Li
here at the summit earlier today. I'm delighted that the minister joins me now, Omar, it's good to have you. Talk about an industry disrupted at
present.
What's your view on DeepSeek, and whether the massive multi-billion dollar spend, some, if not much of that is coming from the UAE at present, maybe
an overspend, a massive overspend. What's your sense?
OLAMA: I think the first thing on DeepSeek is it was a curve ball. It was a surprise to the whole industry. The claims were very big claims that some
things actually do not make sense in terms of whether the cost was for the final training cost, or whether the cost is an accumulative cost of
everything that they needed to actually build these models.
But what was surprising is the amount of innovation that DeepSeek was able to create something that is more efficient, to create something that is
more cost effective, and to make it open source. These frontier models were always closed force because they need to justify the billions of dollars.
China is changing the game.
ANDERSON: The UAE and its own model, of course, open source. You're a big promoter of that. Why? Just explain to our viewers.
OLAMA: So, our view is not everyone will be able to build these models on their own. The best way that technology can be used for good, and the best
way that technology can ensure that there is no digital divide, is for it to be open source. We're a country that thrives in globalization, and with
this ethos, we believe that bringing other countries alongside us is actually the way to go.
ANDERSON: Minister, the UAE has been on becoming a world leader in AI and you've super charged this effort. You've been the AI minister here since
2017, the first AI minister, of course, in the world. It seems a long time ago that you and I first met when you got that job.
[09:20:00]
How do you navigate? What is this highly charged? Some say over height AI world with a clear focus on where the UAE is headed and how?
OLAMA: So, if you looked at what the UAE did since 2017 there was a lot of hype on computer vision systems in 2017, there was a lot of talk concept
arrive in -- at that point. We did not spend billions on the hype. We focused on what would be relevant, even beyond that, which is
infrastructure, which is certain key materials that we need to ensure that our dominance in AI is going to be forward looking.
And it will be relevant if people pivot or they stay on the same course. Now, our investments in GPUs and data centers and infrastructure, today's
paying dividends. We're able to build these models, we're able to attract the top companies to come to the UAE. We're able to attract talent.
And this is what matters. Our key focus on two folds. First, is we want to be the hub of talent for this region, and you know, one of the leaders in
the world. And second, is we want to be one of the fastest go to market places on Earth, because we believe that the money is going to be made in
the application layer, not on building the models themselves.
ANDERSON: To viewers who may not be as immerse in this as you are, just explain what you mean that.
OLAMA: So, it will cost a few billion dollars to build a very advanced reasoning model, today. The cost cannot be justified unless you can apply
it in a way that can create economic dividends and returns. We believe that certain regulations around the world do not allow for the use of AI,
especially in sectors that are non-controversial, where you should deploy AI.
We want to be a place where our legislations are friendly for good uses of AI that are going to create great impact on the lives of people. And we
believe that you can actually go to market here faster than anywhere else.
ANDERSON: I just wanted to explain a little further the multibillion-dollar investments that the UAE is making, not just here, but multibillion dollar
investments have been made elsewhere, particularly in AI data centers, huge investments in the U.S. That's nothing new. You've been investing in the AI
industry and advanced tech industry in the States for a long time.
We've seen the MGX, the Abu Dhabi Investment Group Fund, very active in the U.S. market, also active in the past week or so in France, announced that
the AI summit by the French President, the investment by the Emirates in French or a French giant, AI -- data is this CIA sort of hedge.
Its bit to a degree, because there is a bit of an arms race going on. The Europeans hoping that they can compete. Let's just have a listen to Macron
on this.
(BEGIN VIDEO CLIP)
J.D. VANCE, U.S. VICE PRESIDENT: When conferences like this convene to discuss a cutting-edge technology, oftentimes, I think our response is to
be too self-conscious, to risk averse, but never have I encountered a breakthrough in tech that so clearly calls us to do precisely the opposite.
Now our administration, the Trump Administration, believes that AI will have countless revolutionary applications in economic innovation, job
creation, national security, health care, free expression and beyond. And to restrict its development now will not only unfairly benefit incumbents
in the space, it would mean paralyzing one of the most promising technologies we have seen in generations.
(END VIDEO CLIP)
ANDERSON: Spot the obvious mistake that is clearly not the French President, but it is the Vice President of the United States. J.D. Vance,
talking about a sort of balance between AI, safety and innovation. I do want to close our conversation with a discussion with you about that.
But the investment by the Emirates in France, France, Europe, trying to compete against what are the heavy weights, the U.S. and China? Can you
just give us a sense of where you see that competition sort of playing out?
OLAMA: I was just thinking to myself, the French President speaks perfect American English. But jokes aside, I think the statement that the vice
president made are very accurate. We tend to over a great industry that are nascent and do not allow for them to be applied in sectors, again, non-
controversial sectors that can create economic dividends, that can justify the costs that are being spent on them.
Think about, for example, infrastructure development. If I can build my roads, my bridges, my tunnels, much more effectively using artificial
intelligence, I should, and I should be able to do that today, not in 10 years, not in 5 years, not in a year from now, and that's our ethos in the
UAE.
We believe that the world is not going to be bipolar. It's not going to be unipolar. It's going to be multi polar. And a country the size of the UAE
can have a seat on the table with two things. The same way that we invest in renewable energy to become a global leader in renewable energy with --
We can invest in AI and AI infrastructure to have a seat on the table and to be a main player and driver of the development of this technology. And
while you actually invest in the infrastructure, you can see who can utilize it. You can see who has growth in terms of its utility and terms of
its revenue.
[09:25:00]
And you can actually invest alongside these players. So, we have a very long-term ambition on AI, and we believe that we want to be in the full
stack, developing the models, implementing the infrastructure and working with the talent.
ANDERSON: This is development and deployment. That's where I finally the discussion here so fascinating, and the development of the AI story here so
fascinating, because we're not just talking about deployment across sectors and industries. We're talking about the emergence of this sort of, you
know, a very robust deployment world.
You have a long standing, and perhaps, I don't know whether we would call it friendship or sort of relationship, at least, with Sam Altman of OpenAI,
he's been here the World Government Summit a number of times, as has Elon Musk, of course. Now today we've seen a sort of the opening salvo of a bid
from Elon Musk for Sam Altman's OpenAI.
I just wonder what you make of what's going on between those two I know, reportedly, Sam Altman has been in the UAE recently looking for sort of
further funding. I just want to get your sense, your response, what you've seen emerge across Twitter or X today.
OLAMA: So, I've been I've known both individuals for a number of years now, and I don't want to go into the personal side of this, but I think that
there is some accuracy in terms of Elon -- that he was part of the company and that, you know, he invested alongside in the beginning.
And I also think that companies shift and change, and, you know, have to maneuver to survive, because at the end of the day, it's survivor of the
fittest, survivor of the most agile and survivor of the fastest to adapt. My view on this is, I think the U.S. is going to be able to progress if
they are able to bring a creative technology genius like Elon and as well, a very active and able entrepreneur like Sam Altman to work together --
compete with each other. So hopefully that will happen.
ANDERSON: Good diplomatic answer from the Minister of AI here in the UAE. It's always a pleasure.
OLAMA: Thank you, Becky. Thank you.
ANDERSON: Omar, thank you very much indeed. Right, still to come, President Trump slamming the U.S. court system as a number of judges temporarily
block his plan to reform the federal government. More on that is coming up.
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ANDERSON: President Donald Trump lashing out at U.S. court system as his administration finds itself on a growing collision course with a number of
judges. Now, everything from the president's move to a birthright citizenship to some Elon Musk led efforts to slash federal agencies.
And funding has been temporarily blocked by the courts as the White House tries to reshape the federal government. Have a listen to the president
expressing his frustration on Monday in this conservative talk show interview.
[09:30:00]
(BEGIN VIDEO CLIP)
TRUMP: You got some very bad rulings, and it's a shame to see it, frankly. They want to sort of tell everybody how to run the country. They don't talk
about what you're looking at. All they just say is, oh, it's unconstitutional. Judges should be ruling. They shouldn't be dictating what
you're supposed to be doing.
(END VIDEO CLIP)
ANDERSON: Well, CNN's Katelyn Polantz joins me now from Washington, if I've got Katelyn on the show, I know that there could be, well, it feels at
least like a constitutional crisis. At least you and I, of times talk about crisis. Where are we at here? Just explain.
KATELYN POLANTZ, CNN SENIOR CRIME AND JUSTICE REPORTER: Becky, we're not exactly at the point of constitutional crisis just yet, but things are
moving very fast in the court system. What's happened so far is that the Trump Administration has put a lot of policies in place very fast.
Things like cutting back the federal workforce, cutting foreign aid spending, shutting down USAID, cutting other money that was set to go out
in different ways, from the federal government to organizations to health care and medical research to environmental projects that were ongoing.
And judges have stepped up, Becky, pretty quickly. Oftentimes, setting hearings with just a half an hour notice or just a couple hours' notice,
and then at those hearings, they're saying everything, get on hold. Let's keep the status quo for now so that the courts can look at the law more
closely here.
And so, what has happened just yesterday and in the past couple days? Yesterday, there were five different ways that federal judges stopped Trump
policies. Some of those that are on your screen right now were among the things that judges stopped from happening, especially maintaining health
research funding across the country.
That was a big one that happened yesterday. But everything is moving very fast. Trump is pushing back, and the Justice Department is going to be
continuing to fight this stuff, Becky, saying that Donald Trump's actions should not be reviewable by the courts. He's the president, the head of the
executive branch. He should do what he wants to do. So, it continues on.
ANDERSON: Isn't this fascinating? So, it does. It's always good to have you, Katelyn, thank you so much. Well, coming up, we're going to dig into
the latest tariff declarations and threats from Donald Trump. You'll get the perspective from this global gathering. We are here at what is known as
WGS, the World Government Summit in Dubai. More coming up.
(COMMERCIAL BREAK)
[09:35:00]
ANDERSON: Possibility of more American tariffs looms like an anvil hanging over the global marketplace, ready -- at present, ready to be dropped. U.S.
President Trump could announce plans for what he calls reciprocal tariffs as soon as Tuesday. He said they could hit just about my quote, hit every
country.
And that's on top of a new 10 percent tariff on Chinese goods and the 25 percent tariff and all aluminum and steel that Mr. Trump announced on
Monday. Well, Anna Stewart is here with me. This has been a conversation that has loomed over the discussions that are going on here at WGS.
What are you hearing from business and frankly, government leaders about, you know, what is a very worrying sort of protectionist era that the U.S.
is sort of throwing out the rest of the world at this point?
ANNA STEWART, CNN CORRESPONDENT: And here we are at World Government Summit where we're talking about globalization and how governments, you know, work
together. And yet there's this backdrop, and it's been a threat now for months, about protectionism, de globalization and tariffs.
And it's something that is being discussed, particularly off the stage in the green rooms, before the panels, the private sideline chat, but on
stage, it's quite a different message. I think, from some of the CEOs I spoke to today, like the General Motors International CEO, or we had the
CEO of LATAM Airlines.
And they're quite honest. You know, yes, tariff is something they're going to face, but they've been there before. They say, they say, you know what
will come, will come. We will respond. And that's frankly, because business leaders have absolutely no control about what's going to happen next.
They are in kind of crisis talks behind the scenes, working out what they're going to do. But even if you look at steel and aluminum tariffs,
what does that mean for car manufacturers? If you're manufacturing your car in Mexico, say, and then you want to import it into the U.S. What will it
mean? And the threat of broader tariffs on Europe, that will be worrying CEOs massively.
ANDERSON: Market absolutely hate surprises. You know, a sense that you know, they've got a heads up on what's going on, is where investors would
much rather be, of course. And the idea of these reciprocal tariffs supposedly affecting most of the world will be worrying.
STEWART: Hugely worrying. Today, the U.S. markets just opened, they are trading slightly lower, and I think this is actually probably investors
watching what drone power the Fed chair is going to say in testimony, regular testimony to Congress. Because what impact will the tariffs that
already announced have?
What impact will the tariffs that may be announced have? And the answer is, we're probably not going to get that impact assessment yet, because it's
not just tariffs. Tariffs is one situation you also have, of course, the issue of tax cuts, spending cuts. What will the overall picture be?
There is no doubt tariffs are inflationary, though, and inflation data comes out tomorrow. So, there's a lot for investors to look at. See mix
markets, mix in Europe, mix in Asia today U.S. trading --
ANDERSON: Little bit confused out there -- Yes, little bit. A lot, a bit. Thank you. It's always good to have you. Anna Stewart here with me at the
World Government's Summit. Will the New Champions League knockout phase, begins on Tuesday with a match up, usually fit for a final. I tease you.
More on that, after this.
(COMMERCIAL BREAK)
[09:40:00]
ANDERSON: Welcome back. You're with me Becky Anderson in Dubai at the World Government Summit. This is a special edition of "Connect the World" for
you. Well, Manchester City and Real Madrid meet again for the fourth time in as many seasons.
Rather than it being in the later stages of the Champions League, it's for a place in the round of 16 in the New Champions League structure. While
Amanda Davies joins me now for more on this. Without getting too weedy, just explain where we are at this point.
AMANDA DAVIES, CNN WORLD SPORT: Yeah, you wonder, Becky, whether this is the situation that -- for European footballs governing body absolutely
wanted when they came up with this new format for their flagship competition, the Jeopardy, the intrigue, or actually, whether it's their
worst nightmare, two of the biggest clubs in the competition.
The 2023 winners, Manchester City and the defending champions, the record winners, Real Madrid, going head-to-head at this earlier stage. They didn't
make it automatically through this new, expanded league stage, so going head-to-head in a two-legged playoff to make it into the knockout stages
the last 16.
You know, traditionally you say, oh, they've played each other four times in the last four seasons. They've won two each, and what can we take from
those moving forwards. But all bets are off with these two sides at the moment, they are not living by the rules. Pep Guardiola admitting he
doesn't know what he's going to get from his side.
It's a fascinating encounter, but Darren Lewis, our Senior Sport Analyst and myself have tried to unpick it and look ahead towards to come. And now
we've got more of that in just a couple of minutes in "World Sport".
ANDERSON: Oh good. Good stuff unpacked in "World Sport". Amanda is back just after this break. I'll be back in 15 minutes with the second hour of
"Connect the World". Do stay with us.
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