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Connect the World
Police: Officers Likely Shot a Manchester Attack Victim who Died; White House Waiting on Hamas' Response to Gaza Proposal; Seab Diddy Combs to be Sentenced; Shutdown Delays Collection and Release of Key Economic Data; Nvidia Shares Hit Record High Thursday. Aired 9-9:45a ET
Aired October 03, 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: You're looking at the White House on day three of a government shutdown where the Trump Administration
could begin firing federal employees on mass today. It's 09:00 a.m. in Washington. It's 05:00 p.m. here in Abu Dhabi. I'm Becky Anderson from our
Middle East Programming Headquarters.
This is "Connect the World". Also coming up, British police say one of the people who died in the Manchester synagogue attack seems to have been shot
by officers aiming at the attacker. And for the first time in its nearly 1400-year history, the Church of England appoints a woman Archbishop of
Canterbury.
Stock market in New York opens about 30 minutes from now. And stock futures indicating a higher open on the markets in New York, extending Thursday's
record as appetite for AI trades outweigh any concerns investors might have on the impact on the U.S. economy of this government shutdown.
More on that at the bottom of the hour. Well, we start in the UK, where police say that one of the two people killed in Thursday's synagogue attack
in Manchester was likely inadvertently shot by armed officers. Police were responding after a man rammed his car into the synagogue and stabbed people
gathered for a morning prayer service on the holiest day of the Jewish calendar Yom Kippur.
Police say the suspect did not have a firearm. He was shot dead by police. CNN's Nic Robertson has the latest.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: We're here in the North of Manchester, just down the road from the synagogue that was attacked. And
we're getting new details from the police. They say in the shooting of the attacker, a person they name, has Jihad Al-Shamie, a British national of
Syrian descent.
They say in the shooting of him, a bullet may have gone through the door of the synagogue and into the worshippers inside, and what that stray bullet
may indeed have killed one of the congregations there. They're also saying that there is another injured person in hospital who has a bullet wound.
And the police are saying, and the witnesses here all say as well that the only people with weapons, with guns at the scene were the police, the
attacker, the assailant had a knife, had rammed members of the congregation outside of the synagogue with his vehicle, and then tried to stab them.
And what we've been able to understand and learn from eyewitnesses, inside survivors from inside the synagogue. They describe a situation where they
can hear a banging on the door of the synagogue, a banging, and they're saying that the attacker, Jihad Al-Shamie was trying to sort of smash the
door with flower pots.
They describe it as being a newly renovated door. It was secure. It was strong. But the video that we've seen of the police tackling the assailant,
tackling the attacker, the alleged attacker, at least, who the police at that time described as wearing what appeared to be explosive.
So, you have a situation here of the police, the first responding police, the first police to arrive, they're confronted with an attacker trying to
break through the doors of the synagogue. He appears to be wearing some kind of explosives. Later proves not to be a viable device, and the police
shoot him.
And it appears to be at that point that one of the bullets goes through the door, and what eyewitnesses inside the foyer of the synagogue have
described as seeing people, two people injured inside the foyer of the synagogue, one of them bleeding. There's a call that goes out inside the
synagogue for a medic to come and try and help.
But inside the synagogue, this is the moment that people are beginning to realize that this situation is incredibly dangerous. They have been deep in
prayer. There are children, they say, hiding under the pews. And now the armed police have arrived, and as we know, the suspect didn't respond to
what the police instructions.
He tried to get back up off the ground. Appears to be wearing some kind of explosive device, the police shoot him again and kill him. We know now that
two people, two Jewish members of the congregation, from the synagogue are the victims. Two people died. Three others are believed to be in hospital,
at least three others believed to be in hospital.
[09:05:00]
ANDERSON: Well, meantime, Sarah Mullally was appointed the new Archbishop of Canterbury this morning, the first woman to hold that role. She spoke
about the Manchester attack.
(BEGIN VIDEO CLIP)
SARAH MULLALLY, ARCHBISHOP OF CANTERBURY-DESIGNATE: We are witnessing hatred that rises up through fractures across our communities. I know that
the God who is with us draws near to those who suffer. We, then, as a church, have a responsibility to be a people who stand with the Jewish
community against antisemitism in all its forms, hatred and racism of any kind, cannot be allowed to tear us apart.
(END VIDEO CLIP)
ANDERSON: Well, she will become the spiritual leader of 85 million Anglicans worldwide, as Supreme Governor of the Church of England. King
Charles the third has approved her nomination. Let's get you to CNN's Christopher Lamb, who is in London. And it's good to have you, Chris. How
significant is this moment? And what do we know about the archbishop elect?
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Well, Becky is a hugely significant moment. It's the breaking of an extraordinary glass ceiling in
the Church of England, an extraordinary moment for the role of women in the church.
And I think it has ramifications not just for the Church of England, but across the Christian churches, including the Catholic Church, of course,
where the women are barred from ordination, but where there's a big discussion going on about the role of women in the church.
She is the first female Archbishop of Canterbury in 1400 years in the 1400- year history of that role. She is known as a capable administrator. She was a senior nursing officer, the chief nursing officer, I should say, in
England, ahead of her ordination. She is known, as I say, for her administrative and leadership skills.
She's someone who can bring people together, a conciliatory figure. She's been the Bishop of London, which has been a senior position in the church.
And so, she is someone who has experience, obviously within the church, leading parishes, leading a diocese, but also someone with experience
outside of the church in that senior role within Britain's NHS.
ANDERSON: Good to have you. And it is an historic appointment, married and a mother of two adult kids, of course. Thank you for that. For the second
time in as many weeks, a major European Airport has had to temporarily shut down after a wave of drone sightings.
Now this time, Munich Airport in Germany suspended operations for about seven hours overnight, impacting dozens of flights, of course, and
thousands of passengers. Now, last week, the airport in Copenhagen closed for several hours due to drone sightings, prompting Denmark to ban civilian
drone flights ahead of a European summit this week.
Well, all of this happening under the specter of Russia's war on Ukraine, of course, and suspected Russian drone incursions into Poland and Romania.
Russian President Vladimir Putin laughed off rising fears in Europe when asked about drones at a forum that he was at in Sochi.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Vladimir -- why are you sending so many drones to Denmark?
VLADIMIR PUTIN, PRESIDENT OF RUSSIA: I won't anymore. Not to France, not to Denmark, not to Copenhagen. Where else are they flying to? To Lisbon, you
know, they're the people that are amusing themselves. Are the ones that used to get amused by UFOs.
There are so many weirdos out there. But if we speak seriously, we do not have drones that can reach Lisbon. We do have some long-range drones, but
we do not have any targets there.
(END VIDEO CLIP)
ANDERSON: Melissa Bell following this story for us from Paris. President Putin, referring to EU leaders, I guess, as weirdos there, and joking about
fears of Russian drone incursions over Europe. Look, this is no laughing matter, of course, for governments in Europe. What do we know at this
point?
MELISSA BELL, CNN PARIS CORRESPONDENT: That's right, pretty cynical remarks when you consider the alarm that there's been in Europe as a result of
those incidents. You mentioned the first, of course, in Poland, where they were Russian drones, then the incursion of jets into Estonian airspace.
And of course, you mentioned their Munich Airport. But of course, what's been happening in Copenhagen, no direct link with Russia has been
established in terms of those drones in Denmark. But the finger of suspicion, clearly, is pointing towards Moscow, and you've heard it in the
language of European leaders.
Donald Tusk, the Polish Prime Minister, telling leaders in Copenhagen earlier this week, this is war, the triggering of Article IV of NATO, which
launches this consultation process.
[09:10:00]
So, Vladimir Putin is speaking to real fears and a real ratcheting up of the tensions, the concerns, the fears about this hybrid warfare that many
on Europe's eastern flank have been warning about for so many months, Becky. It's just headed further westward since we're now talking about
Munich and Copenhagen.
So, a lot of cynicism in those remarks after the denial itself. Becky, I think it's important to remember that this is Vladimir Putin, a man who
denied that the military buildup around the borders of Ukraine were anything to do with the planned invasion until the invasion happened.
So that's as far as the denial goes, and what we should make of it. But certainly, the remarks will do nothing to calm European concerns that they
need to be extremely vigilant and that they intend to be very tough about any future incursions. And I think it's important to note also Becky, that
behind the derisory sort of mocking tone that the Russian President took.
There was also a threat saying, look, this is all being done, this ratcheting up of the concerns of European leaders to further the
militarization of Europe. But be very careful, because if that happens, Russia will have no choice but to respond. So, some pretty dark words there
as well beneath the mockery, Becky.
ANDERSON: Yeah, pretty ominous stuff. Absolutely. Melissa, always a pleasure. Thank you. Well, the final ship in the international aid Flotilla
headed for Gaza has now been intercepted. This footage was streamlined -- live streamed earlier from the boat Marinette as it was approached and
boarded by Israeli forces.
Flotilla organizers are promising this is not the end of their mission. They were attempting to break Israel's blockade on Gaza, they say, and
deliver desperately needed aid. And the situation in the enclave has grown even more dire this week. Israel issuing a last chance warning for people
to get out of Gaza City as it ramps up its assault there.
Meantime, we are waiting for Hamas' response to U.S. President Donald Trump's proposal to bring an end to this war. CNN's Jeremy Diamond is live
this hour, instead of in Western Israel near the Gaza border. Jeremy, Trump suggesting earlier this week he'd given Hamas three to four days to
respond.
It received the proposal late Monday night. Any indication yet and what its response is likely to be, and when we might get it. Important to have you
where you are, of course, today, and you can explain why it is that you are there.
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Yeah. Becky, well, it does seem unlikely at this point that Hamas is going to reject this Trump
proposal altogether. We know that they have been consulting this week with other Palestinian factions, and have also been meeting with not just the
Qatari and the Egyptian mediators, but also the Turks, who have also been involved.
And there really has been a full court press from those three countries, as well as several other Arab and Muslim countries that are trying to get
Hamas on board with President Trump's 20-point plan to end the war in Gaza. One of our producers, Ibrahim Dahman, spoke with a senior Hamas official,
Mohammad Nazzal, who said that Hamas is unlikely to seek more time to respond to their proposal, saying, quote, we will respond soon, God
willing.
And so, we expect Hamas to respond, they will likely respond positively, but also requesting some changes to this proposal, and that really will be
the question of, how many changes are they going to be requesting to this. I spoke earlier this week with a source who's involved with the U.S. plan,
who told me that the U.S. is willing to negotiate this proposal.
It is not an entirely take it or leave it offer to Hamas, but they are willing to negotiate over the details of the plan. And they do not want to
see a process that's going to be protracted and drawn out over some of the very core concepts, such as whether or not Hamas disarms, for example.
And so, we will have to see whether Hamas is willing to make some real changes to its red lines that it has set up in the past, several of which
are included in this Trump proposal. But indeed, as these negotiations, these deliberations, are still ongoing, we are continuing to hear and see
the sights and sounds of bombardment in Gaza.
There have been several artillery shellings going into Gaza just in the last few hours that we have been on the border. We could see some smoke in
the distance as well, although it's quite bright right now, so maybe difficult for you to see on your screen, but we are in Northern Gaza right
now.
We're just across from Northern Gaza, I should say, and we have been able to see a series of explosions and puffs of smoke as a result of that. And
this is notable, because this is the territory that Israel has claimed to have totally conquered and taken over and cleared of Hamas militants, and
yet we are continuing to see Israeli forces striking there.
[09:15:00]
And we have also seen, earlier this week, just two days ago, Hamas firing several rockets into Southern Israel, one of their biggest barrages in
really, quite some time. And the fact that it came from Northern Gaza, one of these areas that Israel has purportedly cleared, shows the difficulty
for Israel of actually achieving this mission of completely destroying Hamas, which of course, Prime Minister Netanyahu has made clear, is his
number one goal.
And should Hamas reject this proposal, President Trump has said he will give Israel the full backing to continue with that mission in Gaza.
ANDERSON: Good to have you, Jeremy, thank you very much indeed. Time there for just after 04:15 in the afternoon. You're watching "Connect the World"
with me Becky Anderson from Abu Dhabi, where the time is just after 05:15. Still to come, the White House has a mass firing list.
And if the work, if you work for the government, you're not going to want to be on that. More after this.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: Can you give us an estimate on the number of federal workers that the Trump Administration wants to
fire during the government shutdown? Are we talking hundreds? Are we talking thousands?" Look it's likely going to be in the thousands.
(END VIDEO CLIP)
ANDERSON: Well, those remarks from the White House Press Secretary, Karoline Leavitt, on Thursday. Today, thousands of U.S. federal workers
could end up with pink slips. The White House threatening to make deep cuts to the federal workforce, which has been caught in the crosshairs of course
of this government shutdown fight.
The political stalemate on Capitol Hill is now on day three. And so far, neither side appears willing to bend. Democrats are expected to vote down
the Republicans short term spending plan later today. CNN's Alayna Treene following the story for us from the White House.
And as we understand it, according to sources, Alayna, the White House has a list of the agencies that they are targeting with the firings, the man
leading the charge in this is a man by the name of Russell Vought. Who is he and why is he so crucial for us to know at this point?
ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yeah, Russell Vought has been a name well known, not only in conservative politics, but in Trump world
itself for several years now. He actually was the White House's Budget Chief under the first Trump Administration as well.
But he is someone who has very conservative ideals. He was part of Project 2025 something, that was created under the Heritage Foundation, and he was
one of the architects of that really conservative blueprint for the country, for one another Republican, namely, if President Donald Trump were
to win re-election, which, of course, he did.
I would note that actually throughout the president, President Donald Trump's campaign for his second run at the White House, he tried to
distance himself.
[09:20:00]
Donald Trump, I should say. Trump tried to distance himself from Project 2025 repeatedly arguing that some of the ideas in there were too
conservative, a little too far right for his platform. But now we actually saw the president yesterday nod to Vought, saying that he was going to be
meeting with him to discuss this myriads of cuts that they are planning to the administration while the government is shut down.
And he nodded to the fact that Vought is someone who is very well connected to Project 2025 so I just want to give you some of that context here. But
look, I mean Russell Vought is someone who essentially, because he is the White House's Budget Chief, he has the keys right now to the federal budget
even more so now that the government is shut down.
And we've heard from a series of people in this White House that they plan to use this period when the government is dark, really, when the funding --
is coming in, to enact mass layoffs. And when I say layoffs, they're talking about thousands of firings, that those are permanent firings that
they are planning to roll out, I'm told, as soon as today.
And just so you know, everyone understands what we're talking about. During a government shutdown, you normally have employees, federal workers
furloughed, essentially temporarily laid off during that period. But this has never been done before, Becky, we went through the data of the past 14
or so shutdowns.
No previous administration, including the president's first administration, has ever done what they're trying to do during this government shutdown.
Now, I do want to say as well, we saw Vought today announce that they're not only making cuts or firings across the government, but they're also
trying to find cuts to different benefits programs and different projects, specifically infrastructure projects.
And we've seen them now pause funding and kind of try to inflict pain on democratic run cities. One of the cities that we heard they were targeting
yesterday were infrastructure projects in New York City, they were freezing approximately $18 billion, Russell Vought announced yesterday for some of
those projects.
I should note that New York City is actually home to the constituents of the Democratic leaders in Congress, both Hakeem Jeffries and Senator Senate
Minority Leader Chuck Schumer. But then today, Vought announced that they're also going to be freezing 2.1 billion in Chicago infrastructure
projects as well.
So, we're seeing kind of these cuts be targeted to democratic led cities, democratic you know, projects. That's exactly what we heard. The president
said that they would be targeting, really programs that and benefits that are more aligned with the Democrats. Now I want to give you a sense of what
we've been hearing from Republicans on this because there's two quotes that show kind of the differences of how they're viewing.
This one from Johnson, Mike Johnson, the House Speaker and one from Senator Mike Lee, take a listen.
(BEGIN VIDEO CLIP)
REP. MIKE JOHNSON (R-LA): Russ does this reluctantly. He takes no pleasure in this.
SEN. MIKE LEE (R-UT): Russ Vought, the OMB Director, has been dreaming about this moment, preparing this moment, since puberty.
(END VIDEO CLIP)
TREENE: So, two very drastically different looks on how you know, Vought is viewing this, but I think what Mike Lee saying is very much in line. We
know that vote has been planning widespread cuts to the federal government for a very long time, and now they are arguing is the time to do it while
the government is shut down.
ANDERSON: Thank you, Alayna. I want to stay stateside and get you to a developing story in the next hour. It is the sentencing for Sean Diddy
Combs today, and you may remember he was convicted on two counts of transportation to engage in prostitution. Each count carries a possible
prison sentence of up to 10 years.
He was cleared of more serious charges of sex trafficking and racketeering conspiracy. So next hour, we are expecting to hear more. Laura Coates joins
me outside the courthouse. And as we understand it, the defense is expected to show a video. Viewers can see a part of that video that CNN is just
obtained. Just explain what we know about this video and what the defense is trying to do with it at this point?
LAURA COATES, CNN CHIEF LEGAL ANALYST: You know, one of the big things that any defense wants to do in order to reduce the possible sentence of their
client is to present that person as a remorseful family man, not the image of the celebrity that the entire world knows, I think of Sean Diddy Combs.
In fact, in the letter that Sean wrote to the judge. He wanted to make the judge not use him as an example or a poster child, and instead somebody who
he wanted to give a second chance. This video includes images of his young children. Him as a family man, discussions about him as a humble person,
all with the hopes of having the judge see him as that person, as opportunity to be a changed person.
As he writes, he believes that prison could either kill you or break you and he chooses to live. He wants this judge to view him as somebody who can
demonstrate remorse, and in fact, is a changed person.
[09:25:00]
Now on the flip side, there are letters from victims, including Cassie Ventura in this matter, who testified while pregnant over a course of days
about the violence that she suffered at the hands of Sean Diddy Combs. He was not convicted of crimes related to RICO and sex trafficking, which
requires fraud and violence to be proved.
But still, she was one of the people mentioned in the transportation to engage in prostitution, and she has said, do not be fooled. This is not a
changed man, and fears for her life moving her family out of New York. Now, remember, he is not going to face life in prison. The more serious charges
are gone, but they are worlds apart from what the prosecution and the defense want.
The prosecution, they want 11 years because of the manner in which he engaged in the crimes that he was convicted in, and want the judge to take
into account the violence as alleged. The defense is saying, 14 months is what is required. The big question today is, how would the judge rule on
the sentence and how long might this take?
We are told, from guidance from the court sources, this could be an all-day sentencing that could last even up until Monday, of an actual statement of
what the sentence is. But I'll tell you, what is really abnormal is the opportunity for anyone in this circumstance to have a video such as this
played, and I'm eager to find where this judge will fit on this range of sentencing.
ANDERSON: Yeah, it's fascinating, isn't it? Can you just get our viewers a sense of just how wide that range is?
COATES: So, we have sentencing guidelines here in the United States based on your prior criminal behavior and convictions he doesn't have that. It
also takes into account the nature of the crime, and they assign sort of a grid and a points-based system that ends up in a particular range of time.
To guide the court's hand, you have the probation team, which essentially are court employees who are interviewing the defendant community members
thinking about aspects of the crime and discussions about the nature of their discussions with the person.
And they are going to recommend they say to the court about five to seven years the prosecution wants higher because they want them to take into
consideration force and violence used in the domestic violence that was described in grave detail and of course, seen by so many people around the
world in that now infamous hotel video, and they want to take into consideration his lack of remorse.
Now, meanwhile, the defense is saying, no, no, the range must be lower. We can't take into account the violence or the force, because that was not
what the jury found for the prostitution requirements, and instead, they wanted a very, very low end, which would mean, given the time he's already
been in jail, even awaiting sentencing, let alone his trial, he could, if the judge says the defense is right, he could be out by the end of this
year.
That's the range we're talking about for this court end of this year, Diddy free or 11 years from now?
ANDERSON: Wow, that's quite a range.
COATES: -- quite a range.
ANDERSON: It's good to have you there, Laura, your insight and analysis. Go on. Go on.
COATES: No, I'm just agreeing with you. The idea of the range is why I think so many people are here waiting to see what's going to happen. We are
expected to hear, by the way, from other victim -- who testified in court and Diddy himself is going to speak today. He will present in so called
street clothes and address the court in his own now, sentencing defense.
ANDERSON: What do you expect him to say? Have we got any idea?
COATES: He wrote a letter three pages worth, describing why he wanted a second chance from this judge. He described himself as a broken man,
humbled by this process. He addresses two of the women who testified, Cassie Ventura, as well as the pseudonyms witness and victim named Mia.
He describes that the images of abuse that he inflicted on Cassie Ventura have replayed in his mind over and over again, and he will carry a burden
of that domestic violence with him for the rest of his life. He even talks about how the behavior that he is asking to get a second chance for in
terms of the domestic violence, are things that he, himself, as a father of daughters, would find unforgivable.
But he talks about wanting a second chance, and that's the letter I expect him to read that openly in court and to, of course, add to the detail and
personalize it for this judge, and I suspect, read the room to get an idea of how this judge is feeling, because no longer a jury of 12, he's got to
convince.
It's a judge who's not going to be persuaded by antics, crocodile tears or anything short of authenticity.
[09:30:00]
ANDERSON: You know you've got the right person on the story when you've got Laura Coates in town on this story. She has a vast background in law and
her insight analysis so important to us. We are going to get back to that courthouse as and when we get more. We are also just about to listen to or
hear the opening on Wall Street today, and there it goes.
That's the bell. The much-anticipated release of the U.S. jobs report is, of course, on hold. What the government shutdown means for the fate of that
data and the uncertainty facing economists is up next.
(COMMERCIAL BREAK)
ANDERSON: Welcome back. I'm Becky Anderson in Abu Dhabi. You're watching "Connect the World" with me Becky Anderson. Well, the first Friday of the
month is supposed to be the day the U.S. labor market department, sorry, releases its closely watched jobs report.
It's not happening today, of course, because the U.S. government is shut down, and that's put a release on the -- that's put a halt on the release
of these numbers. Ahead of the mark, ahead of the opening on Wall Street, the markets were looking pretty buoyant, and they've opened in a pretty
buoyant fashion.
They do seem to be shrugging off this U.S. government shutdown, despite the fact that, of course, you know, no jobs data being released leaves
economists, including the Federal Reserve, with a decidedly cloudy view of America's economic picture. Democratic Senator Elizabeth Warren says the
data is ready to be released, and she is calling on President Trump to do just that.
Well James Knightley is the Chief International Economist at ING Financial Markets, and he joins us now. It's good to have you. Particularly on this
day, this data has become, of course, arguably more important given the uncertainty around the U.S. economy. After the last jobs report.
The fed has announced its first rate cut of what it indicates is a series, but of course, it watches inflation and it watches jobs. Those are its two
responsibilities. How important is this data and how difficult is it to analyze the economy without it?
JAMES KNIGHTLEY, CHIEF INTERNATIONAL ECONOMIST AT ING FINANCIAL MARKETS: Yeah, I mean, it's fair to say that our visibility on what's going on is
certainly impaired by all of this. That's not to say that we're flying completely blind, though, of course, there are plenty of alternative data
sources coming out there, lots of different business surveys, lots of different providers out there. We can get some really granular data on
restaurant dining right across the U.S., for example.
[09:35:00]
So, we're not, as I say, completely blind, but it does make a job a little bit trickier, and certainly for the fed as well. But I think you know, in
terms of what I'd say, we have, as you suggest, seen the start of interest rate cuts coming through. And the fed has signaled that it thinks it will
probably do two more this year.
And so far, the third-party data we've been getting has provided nothing to counteract that sentiment. So, markets are still very firmly backing the
idea that we will get interest rate cuts in October and December.
ANDERSON: And is that why we see these markets continue to hit record highs, despite the fact that the U.S. government is shut down, and as you
rightly point out, there is limited visibility on actually what is going on in the market and the economy.
KNIGHTLEY: Yeah. I mean, it may well be, you know, no news is good news, you know, until something can come in and break sentiments, we're just
going to keep going in the direction that we've been going for the last few months as well. So that is one thing that I think markets are always
looking to the positives.
And the fact that we haven't had a jobs report that could and probably would likely have been very soft today, just allows you to make that excuse
to just keep going upwards.
ANDERSON: These stock markets, and I'm looking specifically at those, and we can talk about other U.S. assets, and these U.S. stock markets are being
buoyed by investor appetite for AI and advanced tech. We've seen Nvidia, once again, Thursday, hitting a record high will bring up the price.
That may have been some profit taking on that today, but I mean, you know this is happening a time where we are also warned that there just may be an
AI bubble out there. It does seem as if investors are honed in on big tech, ignoring what's going on in government, ignoring what's going on, you know,
in the world that says there's a bubble fit to burst here beware. What's your take?
KNIGHTLEY: Yeah, I think you know, certainly it is being driven by corporate news slow rather than the macro news slow. The markets are
taking, I think, quite a sanguine view on what's going on, saying, well, the Fed Reserve is there. They're going to help us out, they're going to
support the economy, they're going to do what's necessary.
So, we can just keep focusing on the relatively upbeat corporate news. Now I think most economists are a little bit nervous, though. The consumer is
key to the America, the American economy. 70 percent of all economic activity is consumer spending, and we have got stresses materializing.
Consumer confidence is weakening. People are worried about tariffs, raising prices, squeezing spending power. They are worried about the jobs market as
well, and also, while equity markets are indeed at all-time highs, we've had five consecutive monthly falls in home prices.
So, it's not all pointing one way. There are certainly still risks out there for now, equity markets are looking, as I say, to all the positives,
but certainly, I think most economists are a little bit more conservative, a little bit more cautious in the outlook.
ANDERSON: Yeah, and I just wonder whether investors that you speak to share your concern. Because, as we see this sort of, you know, these surges, or
this continued appetite to buy us tech stocks. So, we also see, you know, a continuation of you know, the gold price rise, there's a hedge going on.
It's just that both sides of that hedge seem to be making money at the moment. I just wonder how much concern you hear out there from the investor
community, and what the long-term damage to U.S. assets might be given where we are at in 2025?
KNIGHTLEY: Yeah, I think it's fair to say, I mean, I was in Europe for the last couple of weeks, traveling in the U.S. again this week. You know,
speaking to investors, there's very little conviction buying out there. You're buying because you've got a lot of cash on the sidelines, and that
cash needs to be put to work.
So, there is not a huge confidence that this is, you know, this is a market that's just going to keep going up and up and up. It's very cautious, very
-- wary to the risks. And suddenly, I think I'd be very nervous that we could see increased volatility over coming months. You know, we've had a
fantastic run.
But as I keep saying, those economic challenges are not going away, and this still, you know, open for debate whether the fed, whether interest
rate cuts will resolve the problem, whether, you know, there is something more fundamentally shifting in the U.S. economy. That could mean that we
could be faced a much weaker story as we head into 2026.
ANDERSON: Yeah, yours is not an easy job these days. I mean, all the sort of you know, the fundamentals that you would look at feels like they're
pointing one way, and yet, you know what's happening the markets, what investors are up to, you know, seems to be counter to that.
[09:40:00]
But anyway, I mean, tough job, but somebody's got to do it. Thank you, and thank you for joining us today, and we will be right back. Thanks.
(COMMERCIAL BREAK)
ANDERSON: Abu Dhabi has been balling the New York Knicks beat the Philadelphia 76ers yesterday as the NBA games come back to the Emirati
capital. This was one of two preseason games hosted in the Etihad Arena, right along the road from where we are here. And I'll be at the game on
Saturday night.
So, it says, see who takes that win. "World Sport" is up next. I'll be back in 15 minutes with the second hour of "Connect the World".
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[09:45:00]
(WORLD SPORT)
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