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Trump to Speak at Investment Forum in Riyadh; Trump on First Major Overseas Trip of Second Term; Ukrainian President Volodymyr Zelenskyy "Would Appreciate" Trump at Potential Peace Talks; Hostage Families Travel to Doha to Meet with U.S. Officials; CEOs Including Elon Musk with Trump in Saudi Arabia; Kim Kardashian Testifies in Paris Robbery Trial; Trump and Saudi Crown Prince Sign Bilateral Agreements; Looking Back at Previous U.S. Presidents' Visits to Saudi Arabia. Aired 10-11a ET
Aired May 13, 2025 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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BECKY ANDERSON, CNN HOST (voice-over): Welcome to the second hour of CONNECT THE WORLD.
President Trump gets the royal treatment in Saudi Arabia.
I'm Becky Anderson in the Saudi capital of Riyadh, where it is just after 5 pm. And we are now waiting on remarks by the U.S. president at the
investment forum here in Riyadh.
The U.S. president will be attending the forum with Saudi crown prince Mohammed bin Salman, along with a host of top officials from both countries
and CEOs of major American companies, intent on drumming up business here.
Last hour, the two leaders, along with those top officials, signed a number of bilateral agreements, including one on military cooperation. Now all
this follows what was an opulent welcome to the Saudi royal court and president Trump's first major overseas trip of his second term in office.
He will also this week head to Qatar and the UAE. Of note, there is no scheduled stop for the president in Israel.
Well, CNN's senior White House reporter, Betsy Klein, back with me this hour.
And we've seen a list of these MOUs and agreements signed between the Trump administration and the Saudi government.
What jumped out?
BETSY KLEIN, CNN SENIOR WHITE HOUSE CORRESPONDENT: To me, it's really about military cooperation and energy cooperation.
There is one on the modernization and development of the Saudi armed forces through future defense capabilities, enhanced cooperation on ammunition
training, support services, maintenance systems, upgrades, spare parts and education for land and air systems of the National Guard.
There's also one on development of the health capabilities of the Saudi armed forces. In addition to that, there are some judicial and other
agreements that were signed.
And I think, you know, we talked earlier about what president Trump is getting. He's really showing that he is a dealmaker, a leader on the world
stage. He's bringing investment back to the U.S.
This is now what the Saudi Arabians are getting in return for that investment. They are getting this high-level cooperation with the U.S.
government that they can show as part of this really developing alliance.
ANDERSON: Yes. And this is a decades-old relationship, which has struggled at times over the past decade or so during President Obama's time and
indeed during the Biden administration. So this is about deepening that relationship once again and ensuring that it works in both countries'
national interests.
Of course, the sovereign cash from here, you know, helps Donald Trump with his America First policy. He sees huge opportunity as far as business and
investment is concerned. The Saudis very mindful that this should be a mutually beneficial relationship.
KLEIN: Absolutely. And we are seeing that, with these agreements on really a wide number of issues, including involving the Department of Defense, the
Department of Energy of the U.S; also, the Smithsonian Institutions, for a number of different areas of cooperation they're looking to shore up here.
ANDERSON: It was interesting being here and around the region and watching the development of these trade and defense deals, which have been on the
books now for some time. But the Biden administration tied these deals to normalization between Saudi Arabia and Israel.
Now we know that that is now off the table. That is dead as far as the Saudis are concerned, unless they see a credible pathway to a Palestinian
state. Donald Trump, it seems, conceding to that point and going ahead with these bilateral trade and defense deals at this point.
KLEIN: Yes, I think it's a priority for the Trump administration to expand the Abraham Accords. Of course, that was something that they unveiled back
in 2020. Saudi Arabia has not normalized relations with Israel in the way that they were hoping by this point in time.
But I think that taking that off the table as a precondition for some of these deals in areas of cooperation was something that Trump was willing to
do in exchange for some of these economic wins.
ANDERSON: Benjamin Netanyahu will be, I'm sure, keenly watching the images of Donald Trump here in Saudi Arabia before he goes to Qatar and then on to
the UAE, somewhat frozen out of discussions here, discussions which led to a ceasefire between the U.S. and the Houthis, U.S.-Iran talks.
What do we know about those at this point?
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KLEIN: Well, I think just overshadowing this trip is all of the things that we are not talking about or hearing about publicly from these world
leaders. The specter of Iran, the U.S. held a fourth round of talks led by Steve Witkoff over the weekend. Those talks are moving forward and
progressing.
They're obviously of great interest to the countries that president Trump is visiting here but also to Israel, who does not want to see the U.S.
strike any kind of nuclear deal with Iran. That is something that he is likely to be pressed on, the substance of those deals behind closed doors.
We are not expected to hear him talk about it publicly.
Also, the instability of the economy as a result of the president's tariff policies, something that is sure to come up again. Behind the scenes
publicly, these leaders are going to be flattering the president, offering him deals.
But there is a lot of concern in this region about that economic instability, the issue of human rights; again, something that is not likely
to be on the agenda. President Trump's business dealings in the region, we are not expected to hear him talk publicly about this.
But the Trump Organization has significant real estate holdings in all three of these countries that he is visiting this week. And most notably,
as you mentioned, this Middle East trip does not include a stop to Israel.
Back in 2017 when the president made that first international trip, he stopped in Saudi Arabia and then he went on to Israel. He's not doing that
this time. I think it really underscores the fraying relations with prime minister Netanyahu during this piece of the Biden administration.
ANDERSON: Interesting stuff. It's good to have you. Thank you very much indeed for joining us.
Well, Hasan Alhasan is a senior fellow for Middle East Policy at the International Institute for Strategic Studies, joining us now from Manama,
Bahrain.
And CNN's Anna Stewart is with us live from London.
Let's talk firstly, Hasan, if we can, about these MOUs and agreements that Trump has just signed, a whole list of economic, trade and defense
agreements.
What stood out to you and what did they what did they represent of substance at this point?
HASAN ALHASAN, SENIOR FELLOW, MIDDLE EAST POLICY, INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES: Yes. So I think these agreements and MOUs are
trickling through; I think it's part of the pomp and ceremony to sign a very long list of agreements.
We'll obviously have to spend time and scrutinize them closely to see what really is substantive and what really is new and what is more in the realm
of sort of a diplomatic reinforcement of these long standing relations.
I think we've known for some time that defense is going to be a very significant part of this visit. There was speculation about a very large
arms package that the U.S. and Saudi Arabia could agree on.
But I think bilateral military and defense ties are obviously going to be a big part of this. And I do think that we are seeing U.S.-Saudi relations
crystallize around sort of defense and technology for investments, kind of partnerships.
Where I think, part of the important gestures that the Trump administration has made over the past few days is ease the curbs on export controls and on
the sharing of advanced U.S. semiconductor and AI technology.
And I think this is something that the Gulf states hold to be a significant priority for them. And, of course, conversely, I think, from the Trump
administration's vantage point, attracting investments into the U.S. economy, which the Gulf states have pledged to do, $2 trillion of,
collectively, I think is obviously going to be a priority for him as well.
ANDERSON: Yes, that sovereign cash key for a very transactional U.S. president who has this America First policy, which is about sort of
onshoring AI and advanced capabilities in what is the U.S.' AI race against China. It's a good lens to see this trip through, that U.S.-China lens.
Anna, let me bring you in. I was at the lunch earlier today. It was fascinating to see pretty much everybody, every member of the cabinet here,
you know, the entire sort of engine that powers Saudi at the table, as were many of Donald Trump's cabinet and notably many CEOs -- Elon Musk, Sam
Altman's OpenAI, the Palantir CEO.
And the list went on: Larry Fink from Blackrock on the sort of investment banking side.
And what are these CEOs expecting to hear from Donald Trump today?
And conversely, what do we expect the Saudis are hoping to hear?
ANNA STEWART, CNN CORRESPONDENT: This is a massive opportunity for all of these big U.S. companies' CEOs. You slightly wonder if there are any CEOs
left in the United States. The list is very, very long in terms of who has headed out to Riyadh and are joining this forum. And they're there for two
key reasons.
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One is, of course, they want investment from Saudi Arabia. The PIF is the biggest sovereign wealth fund in the world. It's already very invested in a
few American companies like Uber. They will be looking for more investment, I imagine, as well from private investors.
But they also have this opportunity, of course, to speak to the president, to speak to White House officials, to try and influence the ever-changing
trade policy of the United States and to make themselves heard from this speech, this keynote we're expecting to get from the president in the next
hour.
I think they'll be looking for some lifting of restrictions on exports of AI chips, particularly for Nvidia. Of course, that's something Saudi Arabia
would be very keen on. They want to really cement their place in terms of artificial intelligence.
In return, perhaps the U.S. will be expecting some sort of restriction from Saudi Arabia on that technology, not then going to China. So that's
probably a key aspect of what we'll be looking for.
We'll be looking for any news in terms of an investment figure, a new investment figure from Saudi Arabia and how much they're willing to invest
in the United States. We have that $600 billion figure from January. That was assured over a four-year time period. We understand the president would
like it to be $1 trillion.
Economists not sure whether either of those figures are particularly realistic. If you consider the fact that oil prices are low and also Saudi
Arabia has some big, very expensive projects to be weighing on their pocketbooks, really. So they might be looking for investment from the U.S.
as well.
ANDERSON: Yes, budget certainly tighter here as the oil price is significantly lower than certainly than it was this time last year.
And we are just getting a new fact sheet from the White House touting Saudi's $600 billion investment and actually breaking those numbers down.
So let me just take you through this because we're getting this as we've been on air.
They're revealing that Google, DataVolt, Oracle, Salesforce and Uber are committing to invest 80 billion in cutting edge technologies in both
countries.
I wonder just, you know, as you just process that, how significant do you think that is?
STEWART: We'll have to look at how that compares to investments they've made in both countries in the past. For instance, we've had a number of
announcements from Apple about big investments in the U.S. and actually they're not that dissimilar to investments they've made in past
administrations.
So we need to get more into the detail of that. Of course, it's very interesting politically that they are choosing to make these announcements
here with big fanfare.
This will make president Trump look like a very powerful leader that he's able not only to sign, I mean, how many MOUs, letters of intent and
agreements on its energy, defense, industry, security, justice, space, health, conservation, culture but to also then get these Big Tech companies
to commit to investment in the U.S. and Saudi Arabia.
This is making this a state visit, sort of with quite a big difference. I'm not sure we've ever seen anything quite like it at this stage but the
devil's always in the detail and we don't have that detail yet.
ANDERSON: Yes. And we're just looking at images of Donald Trump with Elon Musk -- and yes, Elon Musk listed here, by the way, as the CEO of X and
XAI. To that end, it seems that he is traveling in his sort of personal capacity.
It was fascinating to both of you to be in the room, the sort of -- when you considered that lunch room today just how much capital was represented
in that room. It is -- it was quite remarkable to see.
Hasan, the Saudi perspective on this trip laid out by the Saudi ambassador to the U.S. in an op-ed earlier today.
She wrote and I quote, in part, "In the kingdom, we believe that a sustainable partnership begins with reciprocity."
And I do wonder how much of that is on display now on this trip. And what you see as the trajectory of the U.S.-Saudi relationship going forward.
ALHASAN: Yes, I think, anecdotally speaking, it's quite interesting to see president Donald Trump himself really molding himself in the image of Gulf
leaders, who we're more accustomed to traveling abroad with many CEOs of state-owned enterprises and sovereign wealth funds and pledging to invest
in third countries.
And I think it's quite fascinating to see president Trump sort of really cast himself in that mold.
But I think, more broadly speaking, for the trajectory of the relationship, I think what we're really seeing, in fact, is both sides taking the path of
least resistance in the direction that they think is beneficial for their national interests.
And so it's interesting that I think they've chosen to compartmentalize some of the difficult issues on which they don't necessarily agree. We see
that from the U.S. vantage point when it comes to the question of normalization with Israel. And however keen president Trump might be on
engineering a Saudi Israeli normalization.
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Clearly, I think the Saudis have made it very clear that this is not going to happen without a Palestinian state. But I think he's been willing to put
that, to set that aside and to decouple that issue from a potential wider collaboration with Saudi Arabia on defense or even on civil nuclear energy
things.
Something that that the Biden administration wasn't willing to do. And I think from the Saudi and broader Gulf perspective, I think they also have
been willing to set aside some of the difficult issues that have to do with regional geopolitics.
Obviously, president Trump's vision for Gaza's future is totally unacceptable in the Arab world. He, two months ago, vowed to annihilate the
Houthis. And then about a week ago, decided to sign a ceasefire deal with them.
The deal he could end up signing with the Iranians could be potentially harmful or otherwise. We simply don't know. And so I think there is a lot
of regional issues on which the two sides might find it very difficult to work together in a constructive manner because of the volatility and
unpredictability of U.S. policy at this juncture.
But what we're clearly seeing is a is a reciprocal desire to set aside these difficult issues and to move forward on bilateral deals that have to
do with advancing U.S. and Gulf national economic and defense interests.
ANDERSON: Yes. And you make some very good points. Anecdotally, look, this is a region that is, it seems, perfectly comfortable doing business with a
U.S. president who is so transactional. You know, they have their own Saudi first policy, if you will, unapologetic about that. It's a hugely ambitious
economic vision here as it is in the UAE.
So none of this is sort of unfamiliar. But this unpredictability and uncertainty has really rattled many people I've spoken to around the
region. It affects this region, not on a tariff basis necessarily but it affects the markets here and it affects people's confidence about U.S.
assets going forward.
And that, I think, has had a, you know, that is impactful and is still for many people, there's a real question mark about where this administration
goes next.
It is good to have you both. Thank you very much indeed for joining us.
We are going to take a very short break. I'm Becky Anderson with a special edition of CONNECT THE WORLD from Riyadh in Saudi Arabia on day one of
president Trump's trip to the region.
After the break, my colleague, Erica Hill, will be back with some of the other news that CNN is following, including what Ukraine's president just
told CNN about his country's goals for potential peace talks this week. More on that is coming up.
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ERICA HILL, CNN ANCHOR AND U.S. CORRESPONDENT: Ukrainian president Volodymyr Zelenskyy says he would welcome Donald Trump's president at (sic)
-- potential presence at potential peace talks with Russia this week.
A senior Trump administration official, however, says the U.S. president's attendance will largely be dictated by whether the Russian president
decides to attend.
[10:20:05]
On Monday, Mr. Trump said he was thinking about flying to Turkiye, where Vladimir Putin had proposed direct talks with Ukraine. Since that offer,
though, the Kremlin has not confirmed whether the Russian president or other officials would actually show up.
Just a short time ago, my colleague, Nick Paton Walsh, asked Ukraine's president directly what would happen if these talks don't result in a
ceasefire. Take a listen.
(BEGIN VIDEO CLIP)
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: If this meeting does go ahead and does not result in an immediate 30-day ceasefire,
will you consider that to have to have been a failure?
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: No, of course, it's meant that Russia is not ready for diplomacy. It's been only one side. It's only about
Russia but has been if they will not, if Putin will not come or if ceasefire will not be supported by Russians, by Putin, exactly by him.
So it's been only one thing that Russia is not ready for any kind of negotiation. No time for playing games on the technical level and et
cetera. It's meant -- it means that they are not -- I mean, this supportive, all of these things.
And it's meant only one thing, that we need to be more strong, unite and tough on them. And today I see only one thing. Sanctions, of course. Of
course, if I will have connection with the president Trump, of course, not only sanctions.
And I will tell him. So you see that we need that sanctions have to be powerful and we need a little bit of time for this when sanctions be --
will have influence.
(END VIDEO CLIP)
HILL: And Nick joins me now from Kyiv.
Nick, President Zelenskyy also very clear there was one person and one person only that he wants to meet with.
WALSH: Yes, certainly. He said he hadn't even really entertained the idea of not meeting with Putin, if a Russian meeting does indeed occur. He was
clear to spell out, he said, to avoid any Russian manipulation, that he will be going to Ankara to meet Turkish president Recep Tayyip Erdogan.
They'll meet there.
But indeed, if Putin says, I'm going to Istanbul, he and Erdogan will fly to Istanbul. Absolutely clear that he will be going to Turkiye to await
Putin's arrival. It is not clear at this stage if Putin is indeed going to make that particular journey. It may be that lower-level delegation
attends.
We know that potentially lower-level American officials are on their way. But it's important, too, to just listen to what he said there, a minimal
goal, really, for all of this is if this meeting does indeed occur -- and that is significant if that there is a ceasefire that either comes with it
or follows it.
He led a little bit more potential rope there for the pace at which sanctions should potentially be used against Russia if they don't attend.
Remember, we're still dealing with the aftermath of a ceasefire that the European powers and Ukraine demanded to start on the midnight between
Sunday and Monday.
That was essentially brushed aside, ignored by the Kremlin. Sanctions were threatened if they did that. Those have not come through yet. Potentially,
many might argue, to allow Istanbul a chance to maybe bear fruit if talks indeed do occur there.
Remember that meeting was a Putin idea for direct Ukrainian-Russian talks. It sort of escalated into Zelenskyy saying he would attend. Trump yesterday
said he hoped the two leaders would go. And there are suggestions, too, that Trump, if indeed they do both attend, Putin and Zelenskyy, he may also
be there as well.
So it is, again, an extraordinary moment, a make or break moment, frankly, certainly when you listen to Zelenskyy describe it for diplomacy here. He
was quite clear that if Russia doesn't attend and doesn't agree to a ceasefire while he's there, then there's no more point really negotiating
with them.
And I think so much of what we've seen over the past week has been a bid by, initially, the Europeans and Ukraine. And now it seems Europeans and
Ukraine and maybe potentially the Trump administration to put Putin in a place where he has to agree to this meeting or not.
And ultimately, I think this exercise may end up clarifying, perhaps in the mind of the White House, quite where Moscow sits when it comes to peaceful
negotiations here. But just more and more riding on whether or not Putin gets on a plane and flies to Turkiye on Thursday.
The question that is yet to be answered, upon which, frankly, everything else depends. Erica.
HILL: Yes, absolutely. Nick. Really appreciate it. Thank you.
Some former hostages and family members of hostages still being held in Gaza are traveling to Doha today, where they're expected to meet with
senior American officials. They're hoping for a chance, as well, to see the U.S. president.
Edan Alexander, who was freed yesterday, is not among those traveling. The Trump administration bypassed Israel to orchestrate his release this week,
hoping it could be a crucial step toward ending the war and freeing the remaining hostages. U.S. envoy Steve Witkoff says he believes there is now
a genuine chance for progress in the negotiations.
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On the economic front in the U.S., inflation slowing to its lowest rate in more than four years. The Consumer Price Index for April, just out a bit
earlier today. Consumer prices rising 0.2 percent last month. That brings the annual inflation rate to 2.3 percent.
A cooler reading than the 2.4 percent seen in March. Some economic observers were not expecting the inflation to slow in the middle of the
Trump administration's trade war. Of course, a lot of questions, too, about what next month's data could look like.
The latest look at U.S. inflation comes also just a day after that stunning pause or reduction, perhaps we should say, in the trade war between the
world's two largest economies. In a veiled reference to the U.S. earlier today, China's leader saying that bullying -- his word -- would only
backfire.
All of this coming after Beijing and Washington agreed to slash tariffs on each other's goods for 90 days. But, of course, that is temporary, as CNN's
Kristie Lu Stout explains.
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KRISTIE LU STOUT, CNN ANCHOR AND CORRESPONDENT: Global markets have been rallying after the U.S. and China agreed to slash tariffs for an initial
period of 90 days and Chinese president Xi is saying there are no winners in a trade war.
But there is uncertainty, especially for businesses that remain in a tariff holding pattern. Starting on Wednesday, May the 14th, for the next three
months, the U.S. will lower tariffs on some Chinese goods from 145 percent to 30 percent.
China will lower tariffs on U.S. goods from 125 percent to 10 percent. In an interview with FOX News, the U.S. trade representative said that China
also agreed to lift export countermeasures after April the 2nd, including curbs on rare earth ingredients.
U.S. tariff rates on small packages from China, this is known as de minimis, will also be decreased. All this comes after a weekend of high
stakes trade talks in Geneva, the first face-to-face meeting between the U.S. and China since the latest trade war escalated in March.
Investors have been cheering the move, Chinese state media as well. And addressing a Latin American trade forum in Beijing today, the Chinese
leader, Xi Jinping, repeated that well-worn line, there are no winners in a trade war.
(BEGIN VIDEO CLIP)
XI JINPING, CHINESE PRESIDENT (through translator): The century defining transformation is accelerating across the globe with multiple risks
compounding one another.
Such developments make unity and cooperation among nations indispensable for safeguarding global peace and stability and for promoting global
development and prosperity.
There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation.
(END VIDEO CLIP)
STOUT: But businesses, investors, they want more clarity and reassurance. Look, 30 percent tariffs on China is a sharp drop from 145 percent. But it
will still mean higher prices.
Major U.S. trade concerns remain, like the trade deficit and Chinese subsidies for capital and labor. And the lower tariffs are in place only
for a temporary period. Look, Hong Kong-based economist Jiawei Zhang points out this.
Quote, "This is only a three-month temporary reduction of tariffs. So this is a beginning of a long process."
And Jane Foley, head of strategy at Rabobank, adds this, quote, "The overall scenario is not as bad as it could have been. But we still have a
fair amount of uncertainty about where these tariffs will settle, their impact on world growth and central bank policy."
So 90 days is a welcome break from the trade war. But the clock is now ticking. The U.S. and China now have three months to reach a final trade
deal -- Kristie Lu Stout, CNN Hong Kong.
(END VIDEOTAPE)
HILL: Just ahead, more news from Saudi Arabia. The first stop, of course, on president Trump's Middle Eastern tour. Becky Anderson is back with you
after this quick break.
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ANDERSON: Welcome back. You're watching CONNECT THE WORLD with me, Becky, Anderson. And a special edition for you from Riyadh. An historic and
incredibly busy day already for the U.S. president, Donald Trump, as he kicks off a four-day blitz of the Arab Gulf states beginning here in Saudi
Arabia.
Soon, we expect Mr. Trump to speak at what is the U.S.-Saudi investment forum of business leaders here in Riyadh. Earlier, he signed a slew of
trade and defense agreements with the Saudis, including one on military cooperation.
The U.S. president, clearly in his element, as he is surrounded by some of the world's top CEOs, including Elon Musk and the heads of Google and
Amazon, amongst others. Faced with the opportunity to flex his abilities as a dealmaker on the world stage.
Of course, Hasan Alhasan is back with us. He's a senior fellow for Middle East policy at the International Institute for Strategic Studies.
Donald Trump, running a little late, was scheduled to speak at the top of this hour. So we'll hang on for him. This is slated as a keynote speech on
this leg of this trip.
Apart from these business deals that we've seen struck today, deals and MOU struck today, what else should we expect on this leg of this trip?
ALHASAN: So I do think, as you rightly mentioned, the deals and MOU are quite significant. I was just going through the fact sheet that the White
House has put out earlier. It is -- it does provide more color and more detail. It does talk about a $142 billion of arms sales to Saudi Arabia.
And that could be quite significant in terms of Saudi Arabia's own ability to deter its regional adversaries and to respond to sources of threat.
We've already seen the Trump administration approve multiple arms sales over the past few months, including advanced air-to-air missiles, precision
laser guided munitions.
And these are important capabilities from the Saudi perspective. And then we've seen a number of other deals in the technology, energy-critical
minerals space. And I've -- I was doing a bit of math as to the numbers that have been sort of put out in the in the White House fact sheet.
And they add up to about $282 billion or thereabouts. And so we're still missing about a $300 billion to $400 billion more of detail. But I think
that this is quite a substantive look into what the two sides have been able to achieve.
But looking beyond business deals and looking beyond MOUs, I think regional issues are very much overshadowing this conference and this visit as well.
We've seen the Palestinian vice president in Saudi Arabia. He met with Saudi crown prince Mohammed bin Salman a few days ago.
And so I think the Gaza issue is very much on people's minds and really looking for ways to break the deadlock and impasse.
On the one hand, with president Trump's vision for Gaza's post-ceasefire future, involving the massive and large-scale depopulation of Gaza -- and I
think that's something that's obviously unacceptable to everyone in the region.
But also really thinking about how to shape the president's agenda on dealing with Iran, with the Houthis, because these have direct
repercussions on the security of countries like Saudi Arabia. So I think regional geopolitical issues have been sidelined so far when we look at the
messaging and the communication that's coming out.
[10:35:00]
But undoubtedly these are things that are on policymakers' minds at the at the moment. And they, I think, will try and get a bit of clarity from
president Trump, who's been very volatile on these issues, as to how he plans on proceeding with these things.
ANDERSON: I just want to get your perspective on the uncertainty, the unpredictability of this -- of Donald Trump and his policies on trade and
tariffs. I was looking at the latest report for this region very specifically.
And while it says that there, you know, there is an enormous impact with regard actual tariffs on this region and where there are, you know, where
there are some energy, sort of caveats in this.
But what has happened is that there is equally as much sort of a sense of unnerving and unnerving sense, a sense of what is going to happen next.
This unpredictability, this uncertainty has really cascaded down throughout, for example, these stock markets around the region.
I just wonder how you think or what you think the consequence of this very, let's be frank, erratic first 100-plus days have been for this region
specifically.
ALHASAN: So I think there are two key points to consider. The first is that, when we look at the direct impact of U.S. tariffs on the GCC states,
the impact might be significant for some sectors and for some countries.
But overall, I think the impact is not that great. And this is due to a number of reasons. Just the U.S. is not the top trading partner for the
Gulf states. China is, it's not a very important market for GCC energy exports. Most of the Gulf states' energy exports travel east to Asian
markets.
And so in a sense, the overall, I think, impact on the Gulf states, who, by the way, are hit by sort of the minimum baseline tariffs of, you know, of
10 percent. And so they have a slightly less rotten deal, so to speak, than many other countries around the world.
But also in the region, including Israel, for example, which was hit with a 17 percent tariff rate, that's obviously been paused at the moment. But I
think, comparatively, the Gulf states are not that impacted.
Now there are exceptions to this. And so, for example, Bahrain and the UAE, both are significant exporters of aluminum to the U.S. and the 25 percent
tariffs on their aluminum exports could hurt them.
Now this is not a short-term worry because, at the moment, there is a shortage of alternative domestic U.S. suppliers. And so the 25 percent
tariff will actually probably hurt more the margins of U.S. consumers, buyers of Gulf aluminum than they will hurt those of Gulf exporters.
But still this is an area of concern. Bahrain and Oman have free trade agreements with the United States and those have been rendered, I think,
quite irrelevant now in the context of this trade policy.
I think, however, the second point to consider here is that, while the Gulf states might not be severely impacted by the direct imposition of U.S.
tariffs on GCC exports, they are nevertheless impacted by sort of the indirect or second order effects of the broader trade war that Trump is
effectively accelerating.
And so what that means is that, if we do see a slowdown in Chinese growth, if we do see a slowdown in global growth, then that could translate into
lower oil demand and will obviously have a downward impact on oil prices and, therefore, on the revenues in the fiscal capacities of the Gulf
states. And that obviously is a is a big source of concern.
So I think the Gulf states have a lot to worry about when it comes to the indirect impact of the trade war. We're going to see obviously how 30
percent tariffs on Chinese exports and what that does to Chinese exports in terms of diverting and redirecting some of those exports.
Potentially competing with Gulf exports in other markets or even flooding the Gulf with cheap Chinese products. So I think there are serious concerns
about the indirect impact.
But I think the direct effect of U.S. tariffs on the Gulf is -- continues to be to be limited. I think where the conversation takes an even more
serious dimension for the Gulf states is when we start talking about things like a potential U.S., in effect, default on U.S. debt.
[10:40:05]
The idea that president Trump could force a number of countries to swap their holdings of U.S. treasuries for securities with longer maturities and
lower yields, that would have a major impact on Gulf financial exposure.
Gulf sovereign wealth funds are immensely exposed to U.S. financial and capital and debt markets. And if we were to see a rewriting of those rules
on the ability to extract capital outside of the U.S. on the question of a potential U.S. default on U.S. debt, then I think that could be a very
serious consideration for the Gulf states moving forward.
ANDERSON: It's good to have you. Your insight is so valuable. Thank you very much indeed for joining us, Hasan Alhasan.
You're watching CONNECT THE WORLD. After this short break, we're going to take you to New York, where the Sean Diddy Combs trial has just resumed.
We are expecting a key witness today. More on that is coming up.
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HILL: Reality TV star Kim Kardashian is in a Paris courtroom at this hour, facing the people who are accused of robbing her at gunpoint and tying her
up nearly nine years ago.
She's testifying against the so-called grandpa robbers, who were accused of stealing millions of dollars in jewelry from her while she was in Paris for
Fashion Week. She told the court a short time ago she feared she would be raped and killed during that attack inside her hotel room.
CNN's Saskya Vandoorne is following the story for us with more of the details from outside the courthouse in Paris.
So bring us up to speed, Saskya.
What more have we heard in terms of testimony today?
SASKYA VANDOORNE, CNN PRODUCER: Exactly, Erica. She is going into great detail, describing that night almost minute by minute. She said that two
men dressed as police officers barged into her room, that one of them had a gun to the concierge's head.
The other one started yelling at her, (speaking foreign language). And she couldn't understand because his accent was so heavy.
So she had to turn to the concierge, who acted as a translator and said, "They're after your engagement ring."
So she handed that over. Then they asked for jewelry. They asked for cash. She gave all of this to them. And then they tied her up. They duct-taped
her. They handcuffed her. They placed her in the bath. And then they made off in the middle of the night.
Now inside that courtroom with her are the 10 people who are on trial, nine men and one woman, who are accused of orchestrating this heist.
The alleged ringleader, Aomar Khedache, he has pleaded guilty to kidnapping. He has pleaded guilty to armed robbery and he has written a
letter to Kim Kardashian, asking for her to forgive him.
Just now, she was responding to that letter and she said that she did forgive him. I'm just going to read to you exactly what she said.
[10:45:00]
"I believe so much in second chances and I meet people who have done horrible crimes and I try to have empathy for them. But I do also fight for
victims who have been through horrific crimes."
He's not the only defendant to have asked for forgiveness. Yunis Abbas, who has also pleaded guilty to some of the charges, has said that he is sorry.
And he didn't realize the trauma that he had inflicted on Kim Kardashian until he saw her on that David Letterman show, where she breaks down in
tears and where she talks about fearing for her life, Erica.
HILL: Saskya, really appreciate it. Thank you.
Also happening at this hour, it is day two of the criminal trial against Sean Diddy Combs. We're expecting a key witness to take the stand today.
His ex-girlfriend, Cassie Ventura, she is also the woman seen in disturbing hotel surveillance video from 2016.
This is that video here, Sean Combs there, running after her in a towel. You see him then, in this moment at the elevators, beating her, dragging
her down the hallway. Yesterday, prosecutors said Combs had coerced her and another woman to participate in his so-called freakoffs.
CNN's Leigh Waldman is outside the courthouse in New York and covering these developments for us.
A very graphic, disturbing first day of testimony. We are expecting Cassie Ventura today. Walk us through what we learned on day one, Leigh.
LEIGH WALDMAN, CNN CORRESPONDENT: Erica, good to be with you.
Like you mentioned, very, very graphic on that very first day, especially in the testimony of Daniel Phillip (ph), who said that he was paid to have
sexual interactions with Cassie Ventura on multiple occasions, spanning the course of several years.
At some points, he said that Ventura paid him. At other points, he said the defendant, Sean Diddy Combs, was the one who paid him. He also testified
that in at least one occasion, he heard what he believed was an assault of Combs beating Ventura.
But he did return to see the couple again after those interactions. Some of the graphic details, that even Combs' children had to get up and leave the
courtroom for, was when Phillip (ph) testified that Combs would direct those sexual interactions between himself and Ventura, tell them what to
do, tell them to apply baby oil, things of that nature.
He also testified that Combs would record these interactions between himself and Ventura. He talked about her state in those interactions, at
one point saying he came to one of the meeting locations. And Ventura was slumped over, appeared to be drugged in that interaction.
Now on cross-examination today, when Phillip (ph) was back on the stand, the defense went after that and said, "Was she drugged during every
interaction?"
And he said no. And some interactions he didn't know if she was under the influence, either alcohol or drugs, in that interaction. But he said only
in that one instance he heard her being beaten and saw her appearing to be under the influence of some sort.
But we're expecting most of the graphic details to come from Cassie Ventura herself, who is expected to testify. And we're hearing that those freakoff
videos and photos will be shown to the jury.
HILL: We really appreciate it. Thank you.
Let's get you up to speed on some of the other stories on our radar right now.
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HILL (voice-over): French actor Gerard Depardieu has been found guilty by a court in Paris of sexually assaulting two women on a film set in 2021.
With that conviction came an 18-month suspended prison sentence earlier today. Depardieu was not present for the verdict. He maintains his
innocence and says he does plan to appeal.
Fighting erupting between rival factions in Libya's capital following reports that a prominent militia commander was killed. The United Nations
is calling for de-escalation and the internationally recognized government in Tripoli told local hospitals to prepare for emergencies.
British police say they have arrested a man suspected of arson following a fire at prime minister Keir Starmer's private London home. No one was
injured in the fire that broke out at the house in North London on Monday. The prime minister was not there at the time.
He, of course, currently lives in the official residence at 10 Downing Street. Counterterrorism officers say they are leading that investigation.
HILL: We bring you back to Riyadh after this quick break for the very latest on president Donald Trump's trip to the Middle East and his first
stop, of course, in Saudi Arabia. Stay with us. This is CONNECT THE WORLD.
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[10:50:00]
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ANDERSON: U.S. president Donald Trump and his delegation are on their first major overseas trip of Trump's second term. First stop here, Saudi
Arabia. No shortage of pomp and circumstance as the Saudis rolled out a royal welcome for the 47th President of the United States.
Last hour, president Trump signed economic and defense agreements with the Saudi crown prince, keeping the mission of the trip in mind, focusing on
trade and investment. CNN's Betsy Klein is here in Saudi Arabia with me.
One expert recently said to me, coming here ticks all Donald Trump's boxes when it comes to his America First policy.
Does it?
KLEIN: Absolutely. And I think, first of all, as you mentioned, that pomp and circumstance, the pageantry, the royal purple carpet that was rolled
out, president Trump is so acutely aware of what things look like on television. It is very important to him and clearly his hosts recognize
that they are trying to welcome him.
We saw those Arabian horses prancing with American and Saudi flags, I mean, really putting on a show of force to welcome the president here.
But beyond that, we are also starting to see some of the more tangible things, the White House putting out a fact sheet that's celebrating what it
describes as historic and transformative deals, including plans to invest in AI data centers and energy infrastructure.
Google, DataVolt, Oracle, Salesforce, AMD and Uber committing to invest $80 billion in what it calls cutting-edge, transformational, transformative
technologies in both countries.
Other big deals they're highlighting as well as those memoranda of understanding and other key agreements of cooperation between the Defense
Departments of both countries.
ANDERSON: So I guess the question is, do they stack up to the $600 billion that he was -- that he was promised if he made this his first stop on his
first presidential trip?
KLEIN: Not quite. But you know, this is something that was announced back in December before the president was even sworn in. And he had talked about
how important it was to get that Saudi investment in the U.S.
Cast himself as a dealmaker the way he has for many, many years, art of the deal. And we just haven't seen the that total, that $600 billion number. Of
course, he joked earlier today he'd prefer it would be $1 trillion.
ANDERSON: I mean, there's some sovereign cash sloshing around this region, these countries, as we've been discussing this hour, also looking to ensure
that their own national interests are served.
These are big projects. This is a completely different country than that which Donald Trump visited back in 2017. It is ambitious. Budgets are
tight. Foreign direct investment here is down significantly.
So I guess we're waiting on this speech from Donald Trump now. It will be interesting to see how he frames this keynote speech at this investment
summit and whether or not it is very much framed around his America First policy or whether it acknowledges the importance of a sort of mutually
beneficial relationship for Riyadh as well.
KLEIN: That will certainly be one of the themes we're watching closely. And just, generally speaking, though, as you mentioned, this checks all of
his boxes. He is very welcomed here. And really they are putting on a show for the president that he very much enjoys.
ANDERSON: Well, I was at lunch and I have to say the atmosphere was extremely warm and extremely cordial. If that is anything to go by, just
anecdotally, he will have a good trip here for tonight.
Thank you.
For tonight's Parting Shots, a look back at the U.S. presidents who previously visited the kingdom of Saudi Arabia.
President Trump in Riyadh today, of course, as part of his Gulf trip. He is the eighth U.S. president to visit the kingdom, a testament that the ties
between the two allies go way back almost 80 years ago, when President Roosevelt met King Abdulaziz Al Saud on board a U.S. ship.
But the first U.S. president to visit Saudi was in 1974, when President Nixon met King Faisal in Jeddah to repair strained relations after the 1973
war.
[10:55:07]
Although Trump is on his second visit as president to the state, Obama outscored him with four visits over his eight-year term. The most recent
trip was three years ago, when President Biden attended a Gulf Cooperation Council summit in Jeddah.
Well, that is it for CONNECT THE WORLD. Stay with CNN. "ONE WORLD" is up next.
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