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Connect the World
Pompeo: To make Sanctions Work, You Must Target Chinese Banks; U.S. Strikes Alleged Drug Smuggling Boats in Pacific; King Charles First UK Monarch in 500 Years to Pray with Pope; Tesla Posts Bigger-Than-Expected Drop in Earnings; Outcry after Trump Demolishes East Wing for Ballroom. Aired 9-10a ET
Aired October 23, 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, a live look at the demolition scene that used to be the White House East Wing. We will explore
President Trump's controversial construction of a multimillion-dollar ballroom, and who is footing the bill. It is 09:00 a.m. there in
Washington.
It's 05:00 p.m. here in Abu Dhabi, from your Middle East Programming Headquarters. I'm Becky Anderson. You're watching "Connect the World". Also
coming up, the U.S. hitting Russian oil with a new round of sanctions. And it's striking another alleged drug boat, but this time in the Pacific
Ocean.
Plus U.S. Secretary of State, Marco Rubio is the latest high-level official coming to this region to make sure that the Gaza ceasefire stays on track.
Well, the stock market in New York opens about 30 minutes from now. Futures all trending lower at the moment, oil though spiking a little today.
We'll discuss all of that and the latest earnings around the bell at the bottom of the hour. Right, frustration mounting at the White House over
what it calls Moscow's senseless war in Ukraine, and that is pushing Donald Trump to hit Russian oil with sanctions. Now it's seen as a major move for
two reasons.
It is a significant change of approach by the U.S. President towards his Russian counterpart seen here in friendlier days. It's also a coup for
Kyiv. EU leaders say they like it too. They are meeting in Brussels after approving their own package of sanctions against Russia their 19th.
Crude, meantime, reacting to those sanctions on Russia's two largest oil companies, prices are higher as oil traders worry about a possible squeeze
on global supplies. Well, a lot moving at this hour. CNN's Clare Sebastian, tracking all of this from London.
And this is a moment, first time since returning to the White House that Trump has put sanctions on Russia. Where does this leave Ukraine? And just
give us a sense of the significance of this.
CLARE SEBASTIAN, CNN CORRESPONDENT: Yeah, Becky, on the political side, it's a major turnaround, right? Obviously, we've seen so far from the Trump
Administration an approach that focused only really on incentives for Russia, right? Restarting diplomatic dialog the summit in Alaska, with all
the optics, the ending of that chapter of isolation of Russia at the hands of the West.
Even in many cases, we've seen White House officials essentially parroting Kremlin talking points. So, there's been a lot of incentives for Russia,
very little in terms of pressure, until now. And these sanctions are big, right? Rosneft and Lukoil are the biggest oil producers in Russia.
Even the Biden Administration stopped short of sanctioning them in their final package before Biden left office in January, he hit the next biggest,
the third and fourth biggest oil producers in Russia with sanctions. So, Trump has gone one step further here. So, I think it is a major turnaround,
how impactful it will be, and what this means to Ukraine.
I think it's still not quite clear. Initially, of course, this means a little extra hope for Ukraine, the idea that the White House has realized
that that approach of incentives only has not worked, and will now, you know, possibly, if this isn't just a knee jerk reaction, start to ramp up
the pressure in a more sustained way.
And I think, look, there's no evidence at this point that this is going to lead to an instant turnaround by Vladimir Putin to say, look, fine. I'll go
for a ceasefire. I think what Ukraine will be looking for is to the extent to which this slows down the Russian war machine, the extent to which it
eats into Russia's oil revenues.
And that will depend on how much the U.S. is willing to enforce this. That takes a lot of hard work. It will depend on the extent to which Moscow can
find workarounds, as we've seen them do so effectively so far in this war, and it will depend on whether the U.S. is willing to go further.
The announcement of the treasury came with an explicit mention of the possibility for secondary sanctions that would make it, of course, much
harder for Russia to find workarounds. And of course, India is a big wild card here. We're hearing stirrings, noises that they could be cutting back
on Russian oil purchases.
They were probably already doing that as a result of their trade talks with the U.S. and secondary sanctions that have come in. So that is something
that experts are watching very closely today, Becky.
ANDERSON: Yeah, I want to just Clare, get you some sound from an interview that I did yesterday. I spoke to the Former Secretary of State under Trump
in his first administration, Mike Pompeo, he was here in the UAE.
[09:05:00]
And he's on record as saying that he wishes more had been done to support Ukraine after Russia took Crimea, of course, a decade or so ago. We
discussed sanctions, amongst many things, yesterday, and here his part of what he said.
(BEGIN VIDEO CLIP)
MIKE POMPEO, FORMER U.S. SECRETARY OF STATE: To actually make the energy sanctions important, you have to go after Chinese banks who are
underwriting a good chunk of this war by getting discounted gas and oil from Russia, providing an enormous lifeline. So, we often in the press,
they'll talk about India.
In the end, you have to go after the Chinese financial institutions that are keeping the economy of Russia afloat to the extent it is.
ANDERSON: I want to come back to your position --
POMPEO: -- that's hard to do. I get it.
ANDERSON: Yeah.
POMPEO: It's easy to be out and talk about it's hard to do, but entirely within our can. And even the threat of that, a credible threat of that, I
think, can begin to change the dynamic.
(END VIDEO CLIP)
ANDERSON: And as you rightly point out, some Kremlin watches saying that these sanctions aren't likely to really massively impact Vladimir Putin's
narrative. Question is, are they likely to at least help, in principle, get him to the negotiating table? We know that a meeting between Trump and
Putin had been at least organized in Budapest in Hungary.
That's what we understand. What is the likelihood that meeting could happen anytime soon at this point, Clare? What are thoughts behind the scenes?
SEBASTIAN: Look, I think Russia would like a meeting. Certainly, they feel that they benefited from the last one, even though, obviously we now see
that it only caused an escalation on the battlefield for Ukraine. And we're hearing from the foreign ministry today saying that they hope that the
contacts with the State Department will carry on.
I think in terms of whether this pressure will be brought to bear, Mike Pompeo has a point, secondary sanctions would be extremely effective in
denting Russian energy revenues. I think the tension that exists there, and one that's existed all along throughout this war, is how much appetite
there is in the West, in the U.S., for taking Russian oil off the market, because, of course, that would lead to sustained price rises, which, of
course, on the flip side, then goes back and benefits Russia.
So, I think if the U.S. does go for secondary sanctions, it would need, certainly, experts have been telling me today to come with policy measures
to try to limit those price rises so that we don't get that tension in play, and then, of course, limiting the impact of those sanctions.
ANDERSON: It's good to have you, Clare. Your insight analysis is super important to us. We did show a spike in the oil price at the beginning of
this show. And I just want to bring that back. There has been a spike, understandably, on the back of this story, perhaps, what I will say is that
there's a lot of oil sort of slopping around at present.
This price spike will be because, you know, taking Russian oil off the market will have an impact, of course, on supplies. I think if you speak to
anybody who studies the oil markets, they will tell us there is sufficient supply out there. So, watch this space on those. But certainly, this has
sent crude, both the WTI and the Brent numbers up quite significantly today.
We will keep an eye on those. Thank you, Clare. Well U.S. Secretary of State, Marco Rubio is due in Jerusalem today to meet with Israeli defense
officials. Now he flies in just hours after Vice President J.D. Vance wrapped up his visit to Israel, as the Americans, frankly, scramble to make
sure that the fragile Gaza ceasefire hold.
(BEGIN VIDEO CLIP)
J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES OF AMERICA: The whole purpose of this trip was to really try to understand how to make the peace
stick, how to move on to phase two, successfully. And a big part of that is just understanding what would be necessary to police and secure Gaza, so
that, on the one hand, we can provide stability and hopefully some humanitarian assistance to the Gazans, but on the other hand, ensure that
Hamas is unable to threaten Israel.
(END VIDEO CLIP)
ANDERSON: Well, CNN's Jerusalem Correspondent Jeremy Diamond joining us live. So, what further details are we now getting on how these talks went
and where things stand, both with the ceasefire and with what we are now calling phase two, which, of course, is about what happens next in Gaza?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, the vice president made really clear that there is this kind of all-out effort right now by the
United States to build out those next steps, both the creation of this international stabilization force.
You heard him there talking about the discussions that are happening about the composition of that force, the role that U.S. military officials will
have, not inside of Gaza, but in terms of coordinating and managing that force. And also, he talked about Jared Kushner and Steve Witkoff being in
Saudi Arabia and in the UAE this week after their visit to Israel.
[09:10:00]
Those are some of the countries that could participate in this force. And so, it's really clear that there is this effort to build out the next
steps. And we also heard from him a little bit of a timeline on how soon we could begin to see initial reconstruction of parts of the Gaza Strip.
J.D. Vance said that within months, we could be seeing tens of thousands of Palestinians being moved into Hamas free areas that are being reconstructed
in the southern part of the Gaza Strip. He said that, that Southern City of Rafah, which has been almost completely obliterated by the Israeli
military, could be rebuilt over the next two to three years.
And by that time, he said that he hoped to see some half a million people living in a rebuilt Rafah in comfort and in security. But he said that this
is all going to happen progressively over time, with thousands of people being moved, you know, one after the other kind of.
And the vice president also made clear that the U.S. is optimistic about the prospects of this ceasefire sticking, but that there are going to have
to be efforts made on all sides to ensure that any violations that take place don't result in a collapse of the ceasefire altogether.
And that's why it's been so interesting to see this week, first Jared Kushner and Steve Witkoff, then the vice president and now the secretary of
state, all landing in Israel, seemingly delivering the same message to the Israeli Prime Minister and the Israeli government about the importance of
maintaining the ceasefire.
How much political capital the U.S. is putting into it, and there, you know, kind of managing, it seems, of the Israelis to ensure that they stick
to their side of the agreement.
ANDERSON: Yeah. Washington, of course, would very much like the Saudis to sign up to normalization with Israel. We know that that is not going to be
conceivable until at least Gaza is stabilized. Construction plans in place, and that a pathway to a Palestinian state is at least credible at this
point.
So, and we also know that the Crown Prince Mohammed Bin Salman is going to the U.S. mid-November. There is just a matter of weeks between now and
then, perhaps one of the reasons why we are seeing such an effort being made by these Trump assets to keep the foot in the pedal, as it were.
Meantime, the Israeli Supreme Court again delaying a hearing regarding allowing independent journalists to enter Gaza. What happens with this
case, next, Jeremy?
DIAMOND: Yeah, that's right back in I should disclose that I am a member of the Board of the Foreign Press Association which brought this case before
the Israeli Supreme Court. And today I was in this hearing as it took place. And once again, the Israeli Supreme Court granted yet another delay
requested by the Israeli government to respond to our petition.
The court did order the government to respond within 30 days for a conceivable plan for the press to be able to enter Gaza. You know, we will
see if they stick to that timeline. We were certainly disappointed today to see that yet another delay has been granted to the Israeli government,
which has used one stalling tactic after the next in order to keep a free foreign press out of the Gaza Strip.
It has been more than two years now since foreign journalists have been banned from entering Gaza independently. It's been far too long for that to
be happening. And once again, today, we at the Foreign Press Association renewed our call for the Israeli government to let us into Gaza
immediately, Becky.
ANDERSON: It's good to have you, Jeremy. Thank you very much indeed. Jeremy is in Jerusalem, where the time is just about 12 minutes past 4, 12 minutes
past 5 here in Abu Dhabi. And we've got coverage of this U.S. push into Israel across all of our platforms, including the latest analysis from our
Senior Reporter, Tal Shalev.
She writes that in the constant presence of American officials in Israel means that the United States is not merely mediating the Gaza ceasefire,
but is actively managing it. You can find that for peace on CNN Digital or on our app. Well, the U.S. military has launched another round of attacks
against alleged drug trafficking operations, this time in the Eastern Pacific.
Defense Secretary Pete Hegseth says that five people on two vessels were killed. Now this week's attacks appear to mark an expansion of the U.S.
military's campaign against the drug trade, all seven previous strikes have targeted boats in the Caribbean. On X, Hegseth said, and I quote, narco-
terrorists intending to bring poison to our shores will find no safe harbor anywhere in our hemisphere.
Let's get you Christopher Sabatini, he's a Senior Fellow for Latin America at Chatham House. Good to have you. Thank you for joining us.
CHRISTOPHER SABATINI, SENIOR FELLOW FOR LATIN AMERICA AT THE CHATHAM HOUSE: Thank you.
ANDERSON: We've been watching these deadly incidents involving the U.S. military. How significant is it that this effort is now being expanded
beyond the Caribbean.
[09:15:00]
When you look at the map of what the U.S. Southern Command calls its area of responsibility. It certainly extends to the Pacific. But what does that
mean in terms of what the U.S. can do there legally?
SABATINI: Well, legally, it's deeply problematic. According to international law, this could be called a war crime. In fact, the United
Nations and a number of human rights groups, including Human Rights Watch have declared these attacks as being extrajudicial executions.
And the President of Colombia, Gustavo Petro has called them basically murder. And it is problematic the simple designation of a narco-terrorist
something completely novel before, when Barack Obama designated individuals as terrorists. He to order -- in order to use lethal attacks, he had to go
to Congress to ask for permission.
This has not occurred under Donald Trump. And quite frankly, the earlier attacks that were in the Caribbean were quite exaggerated in the sense that
most of the cocaine that arrives on the shores the United States does not come through the Caribbean anymore. It comes through land routes or up the
Pacific, which is -- they're now attacking.
So again, they're ramping up their pressure to what end. It's not clear why they need, supposedly, 12 percent of U.S. naval assets just to take out
these individual boats seem a little bit exaggerated, a little bit of overkill.
ANDERSON: In a classified legal opinion, the Trump Administration argues that the president is allowed to authorize deadly force against a broad
range of cartels because they pose an imminent threat to Americans. Here's a libertarian politician, Senator Paul Rand, explaining the opposing view
stand by.
(BEGIN VIDEO CLIP)
SEN. RAND PAUL (R-KY): No fentanyl made in Venezuela, not just a little bit. There is none being made in Venezuela. These are outboard boats that,
in order for them to get to Miami would have to stop and refuel 20 times. They are, in all likely, going to Trinidad and Tobago.
When can you kill people indiscriminately when you were at war. That's why, when we declare war, it's supposed to be done by Congress. It's supposed to
be thoughtful, supposed to be debated, and we're not supposed to do it willy nilly.
(END VIDEO CLIP)
ANDERSON: Rand Paul there. What do you make of that argument against what we are hearing from the administration?
SABATINI: Well, quite frankly, according to precedent, according to even the War Powers Act, Rand Paul, in this case, is on pretty solid ground, the
-- and I can't think in this case, what we're looking at is a real dangerous extension of executive power to engage in effective war without
the approval of the Congress, which is the constitutional right of the Congress.
But then also it opens up just a mere designation of individuals, which we can't prove. The entire policy is shoot first and not even ask questions
later. They claim they have evidence that they're trafficking cocaine. They claim they're part of some members of cartels, but they never prove that.
And a complete violation of precedent the way this has been done in the past. Before, the Coast Guard would seek to board the ships. It would use
lethal force if necessary. It wasn't permitted, but they would verify that these were indeed drugs being trafficked, and then they'd arrest the people
and put them through the judicial system to be tried through due process.
This completely violates all those standards, and in part, as the senator is implying, this opens up a huge scope of activity for the executive to
designate anyone as a narco-terrorist and then proceed to kill them without any evidence that they're in fact engaging in those activities, or that
they belong to some form of a cartel.
ANDERSON: It's good to have you, sir. Thank you very much indeed.
SABATINI: Thank you, Becky.
ANDERSON: Well, next up, something not seen in half a millennium. Find out why King Charles has made history on his latest trip to the Vatican.
(COMMERCIAL BREAK)
[09:20:00]
ANDERSON: Welcome back. You're watching "Connect the World" with me Becky Anderson. It's good to have you on board. And occasion, nearly 500 years in
the making, King Charles has become the first British monarch to pray with a pope in a half a millennium, something not witnessed since Henry the
Eighth broke from the Vatican in 1534 to form the Church of England.
You are looking at images from the Sistine Chapel in the past few hours, where the historic mass was presided over by Pope Leo and the Archbishop of
York. Well, this hour, the king is attending a service at the Basilica of St. Paul outside the walls, which has historic ties to the English crown.
Charles is being honored with a new title royal confrere of St. Paul's in a gesture of spiritual fellowship. Well, Christopher Lamb following the
king's visit, and he joins us now from Rome. And I've tried to give our viewers a sense of the significance here, but I know you are going to do a
much better job than I have. Chris, just fill us in here.
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Well, Becky, it is really an historic moment to see an English king and a pope praying together in the
Sistine Chapel. It's not happened in at least 500 years as you said, some historians are saying or asking whether it's ever happened.
It certainly never happened in the Sistine Chapel before. So, it really has been an historic visit by the king. He is at the moment in the basilica
behind me at St. Paul outside the walls for another service. He has been honored, as you said, as a royal confrater, which is basically a way of
honoring the king and well, offering a welcome to him.
He's also sitting on a chair, especially commission chair that says, "ut unum sint" in Latin, that they may be one. So, this visit is all about
overcoming the divisions of the past. And King Charles is someone who does take faith very seriously. And he is very keen to engage the Catholic
Church, it seems.
Perhaps more so than his mother, and certainly more than monarchs in recent history. He described himself as thrilled to be at the Vatican when he met
with Pope Leo, and of course, this visit is a welcome distraction for him, given the problems that he's having to deal with his younger brother,
Prince Andrew back in the UK.
But clearly King Charles in this visit making History and emphasizing the importance of unity and of building bridges between different churches and
showing that divisions of the past don't have to define the future, Becky.
ANDERSON: And what else is on the agenda for the royal couple on this visit?
LAMB: Well, it's a very short trip. And after this event at the basilica, the king is going to come out, expecting him to do a short walk about to
greet some people who have gathered to see him. He's then going to go to a college, the Beda College, which trains priests, English speaking priests
from across the British Commonwealth.
He's going to spend some time with them. He's going to plant, water a tree. This visit has also been about emphasizing care for creation, which is
something that is obviously a long-standing concern for the king. And then he's going to head back to the UK after. That's a very, very short visit.
It is a trip he wanted to do under Pope Francis, but when Pope Francis got ill, they had to postpone the trip.
ANDERSON: Christopher, good to have you. Thank you.
[09:25:00]
Let's get you up to speed on some of the other stories that are on our radar right now and testifying the French Parliament after last weekend's
heist at the Louvre. The museum's director said the balcony where thieves broke in was not covered by security cameras.
The director told senators it was the result of under investment. Well, tropical storm Melissa barely moving through the Caribbean, setting up the
potential for days of dangerous flooding. Jamaica, Haiti and the Dominican Republic could face the brunt of what is this bad weather.
Melissa is forecast to strengthen to a hurricane by this weekend. And it is day 23 of the U.S. government shutdown, and in the coming hours, the Senate
is expected to vote on a Republican backed bill, if passed, it would require the government to pay workers deemed essential, including those in
the TSA and the military.
Well stay on this with CNN's Annie Grayer, she's live from Capitol Hill. Annie, what's the sense behind the scenes here?
ANNIE GRAYER, CNN SENIOR REPORTER: Well, this is a bit of a shift in strategy for Senate Republicans, who had been adamant that they were not
going to put any bill on the floor other than the bill to fund the government as a way to try and pressure Democrats.
But now they are willing to put this bill that would just pay current -- would just pay essential workers, so people who are currently working
during the shutdown without pay, but that doesn't include -- so that would mean TSA agents, military troops, the people who are currently working.
It would not include furloughed workers. And there are millions of federal workers who are set to miss their first full paycheck since the government
shut down tomorrow. But Democrats are not supportive of this effort, mostly because it's very limited in scope.
And they have a lot of questions about how the president and his administration have been firing federal workers during this shutdown.
Democrats are going to try and offer a bill that would pay all federal workers, so not just the ones who are currently working, but we're not
expecting that to have appetite in the republican conference either.
So, we are day 23 the second longest shut down in history. It is continuing to be a stalemate. There is no end in sight. There are no meaningful
negotiations going on because Republicans say they will not negotiate the rising cost of health care prices until the government is reopened.
And Democrats say, let's have that negotiation and then reopen the government. So round and round we go another day, but we will see how this
vote for some federal workers does on the Senate floor today.
ANDERSON: We can stay with CNN, our colleagues there working behind the scenes to get you the very, very latest. Thank you very much indeed. And
we're going to take a very short break, back after this.
(COMMERCIAL BREAK)
[09:30:00]
ANDERSON: Right, we are out of the gate that is the open on Wall Street. And we are keeping a close eye on Wall Street, investors digesting a slew
of third quarter earnings reports as they wait for U.S. consumer inflation numbers for September due out on Friday, after being delayed, of course,
due to the government shutdown.
Let's see how these markets are faring just minutes into the session. And I have to tell you, and these markets were pretty flat, just mixed on the
futures, just ahead of the bell. So, let's have a little look at the three major indices ended in the red on Wednesday. That is the state of play as
we get out of the gate today.
We are also watching oil prices on the rise amid global supply fears. That's after the U.S. imposed sanctions on Russia's two largest oil
companies. Let's discuss this with Allen Root. He's an Associate Editor at Barron's previously spent 17 years on Wall Street. Good to have you.
Let's start with oil. We've seen this jump in prices today as sanctions were announced on those two major Russian oil companies. Where do you see
this market headed? I mean, there is quite a lot of supply out there slopping around, isn't there?
ALLEN ROOT, ASSOCIATE EDITOR AT BARRON'S: Yeah, a lot of supply. And then, you know, European economy is a little weak. Chinese economy is not growing
like it used to. So, supply, demand balance like demand, portion of that could also be helped. You know, the Russian situation, I think oil is up
about 5 percent but that still leaves it down like 15 percent over the past 12 months, and energy stocks are sort of flat year to date.
So that's sort of the setup. You know, this Russian situation might even be a little more targeted at China than anybody else. I believe, President
Trump and Xi slated to meet next week. A lot of the Russian oil ends up in China. So, this is partly, to some extent, you know, another one of those
pre meeting trade negotiations.
So, we'll see where the policy goes after that meeting. But it again, it's amid this background of basically too much oil.
ANDERSON: Yeah. And I spoke to Mike Pompeo -- the Former U.S. Secretary of State in the first Trump Administration about exactly this. And he said to
me very specifically, and this was in the UAE yesterday. You know, any U.S. sanctions on Russia are targeted effectively at China, so you making a very
good point.
And underscored by Pompeo with me yesterday, Tesla profits down. EV tax credits over. Let's take a look at what that stock is doing today, down
nearly 5 percent, can must turn this around. He's got plans for robots and robotaxis. Many say he's too focused on his own pay package at this point.
What's your view?
ROOT: I thought so, you know, it was -- we've taken a reverse order the from the conference call in earnings yesterday. I actually thought that the
highlight was, I will term it a rant at the end of the call, you know, with Musk saying proxy advisors were corporate terrorists for recommending
shareholders reject the trillion dollars pay package. So, yes, that is top of mind for Elon.
ANDERSON: Yeah.
ROOT: But you know about the earnings, right? And you say, can you turn it around? You know, the stock is up 100 percent over the past year. Earnings
in the most recent quarter, operating profit were down 40 percent, so investors are happy. Is there a turnaround? Is this on the cusp of this new
wave of AI driven earnings growth.
Tesla is always it's almost a company one of one. The car business is definitely struggling, and people should expect more weakness, especially
in the fourth quarter, like you say, with the tax credit going away. If you listen to the call, though, and you read analyst notes, cars are, you know,
number two or three on the list these days, robotaxis and robots are all anybody cares about.
You know that has the stock trading at like 170 times earnings. It's one of the top most expensive stocks in the S&P behind like a Palantir. So that's
where investors heads are at. They did make some progress in the quarter on robotaxis. They're expanding their service area.
There were more promises about expansions to other cities by the end of the year. So that's what people are focusing on. But when you sort of put it
all together, it was sort of like a -- quarter, and that's one of the reasons the stock is down five.
[09:35:00]
I think, personally, I mean, the market will determine this down five is about the right reaction to what we got yesterday.
ANDERSON: Yeah, yeah, it was down four and a bit when we started speaking. It's down just over 5.5 now. Good point 414 spot 55. Let's talk about the
wider markets briefly. Are there fundamental inflation concerns out there, particularly in light of some of the warnings that we've been hearing about
loans.
ROOT: Oh, so, you know, there's a couple of things going on. I mean, the market's still -- Tesla 1.4 trillion people see as an AI stock. AI is still
driving this market. You know, with some of the service providers, GE Vernova, Vertiv, even Amphenol yesterday, they've all reported great
earnings.
The stocks, you know, traded off their highs and videos down yesterday. There's a little bit of AI concern, you know, bubble talk coming into the
market. I don't think there's any real fundamental data points that drive that concern beyond just how well the market's done.
The other part of the market, you know, DOW, chemical -- you know, there's a lot of weakness in housing and construction. It's a high interest rate
since the inflation that is concerning sort of the other 493 stocks in the S&P 500. And I think you raise a good point with the loans, you know,
tricolor, it's what I will say right now is its sort of a watch item.
It is a subset of automotive loans. Automotive loans are not mortgages. That's a good thing. And then subprime auto loans are not all auto loans,
but there's definitely some stress. And I think what the message, the broader message, is the low-end consumer in North America is really
struggling.
That doesn't necessarily show up in stocks, because the high-end consumer, they got money, but the low-end consumer really is struggling, and we'll
have to watch to see how far those tentacles reach into other areas of the economy.
ANDERSON: It's good to have you, sir. Thank you very much indeed. News you can use, folks, if you are keen to keep an eye on these markets, then stick
with us bottom of the hour in this first of our two hour shows, because that is when these markets open, and that is when we get you some insight
and analysis.
Thank you, sir. Well, President Trump moving ahead with plans to build a huge new ballroom at the White House. And now we have a list of who is
paying for it, Apple, Amazon, Lockheed Martin and Meta today, just a few of the companies bankrolling the bulldozers that have already demolished the
entire East Wing.
CNN Digital has a full list of more than 30 corporate and individual donors. But aside from who is paying, many are asking if it should be
happening at all. Here is Tom Foreman.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): As the historic East Wing of the White House is ripped down, outrage is piling up, with preservationists
saying they are deeply concerned new construction will overwhelm the White House itself. And Former First Lady Hillary Clinton posting, it's not his
house, it's your house, and he's destroying it.
SHAWN MCCREESH, WH REPORTER FOR "NEW YORK TIMES": The reader response has been overwhelming. I mean, people are emailing me every five minutes.
There's something about these images that have really upset people.
FOREMAN (voice-over): The White House Communications Director is dismissing the worries as pearl clutching by losers and President Trump has not even
blinked.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: You probably hear the beautiful sound of construction to the back. You hear that sound,
that's music to my ears. I love that sound. Other people don't like it. I think when I hear that sound, it reminds me of money.
FOREMAN (voice-over): After planting massive flagpoles outside the White House, slathering the Oval Office in gold trim and paving over the
legendary rose garden. Trump is relocating the office of the first lady and more and demolishing the space to fulfill his longtime dream of installing
a vast ballroom.
Bigger than a football field, able to hold about 1000 people in an architectural rendering, the $200 million add on looks like something from
the French Palace of Versailles, or, as many critics have noted, a salute to Trump's Florida home Mar-a-Lago. Trump's allies seem fine with that.
And on Capitol Hill, they echo the president's claim that the cost will be covered by private donors.
REP. STEVE SCALISE (R-LA): It's not even taxpayer money. It's going to be a permanent renovation that will enhance the White House for all future
presidents.
FOREMAN (voice-over): Parts of the White House have been extensively renovated before with the input of presidential families. But this time,
the apparent lack of significant outside oversight, the shifting details and Trump's open disdain for government itself is plaguing author Robert
Arnold, who captured the feelings of many on threads.
ROBERT L. ARNOLD, AUTHOR OF "DEFIANCE TIL DEATH": It feels like the whole story of his goddamn term, break it, sell it, lie about it, blame the
press. Move on before the dust settles.
[09:40:00]
FOREMAN: And that seems to be the chief complaint of so many critics. They say this really is the people's house, and Donald Trump is just a renter,
but they can't seem to stop him now. Tom Foreman, CNN, Washington.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
ANDERSON: The NBA is back in action, and so is Wemby, the French phenom, dazzled, dismayed, wow the Dallas crowd all night in his team's win on
Wednesday. Coy Wire will have that more after this short break on "World Sport". I'm back with more "Connect the World" in 15 minutes.
(COMMERCIAL BREAK)
[09:45:00]
(WORLD SPORT)
[10:00:00]
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