Return to Transcripts main page
Connect the World
Hours-long Waits for Passengers at Many U.S. Airports; Meta Liable in Case Over Child Exploitation on Its Platforms; Trump Touts Optimism That a Deal May End War Soon; Nine People Injured After Iranian Missiles Fired Toward Israel; Lebanon Faces Its Worst Humanitarian Crisis in Two Decades. Aired 9-10a ET
Aired March 25, 2026 - 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, these are live pictures of the White House, where U.S. President Donald Trump, says that the U.S.
is in talks with Iran to end the war. Tehran mocking D.C. for negotiating with themselves, they say. It's 09:00 a.m. in Washington, 05:00 p.m. here
in Abu Dhabi.
I'm Becky Anderson from our Gulf and Middle East programming headquarters, you're watching "Connect the World". Also coming up at airports across the
United States, wait times are stretching as long as four hours as TSA offices staffing security checkpoints work another day without pay.
The jury is found Meta liable in a case over child sexual exploitation. The growth the latest in the growing legal pressure on social media platforms
to protect their youngest users. Well, stock market in New York opens about 30 minutes from now, futures indicating a positive open.
We will check back in there for the opening bell to see whether that mood holds. Well, we start with optimism out of Washington and skepticism out of
Tehran over the prospects of a negotiated settlement to end the war. U.S. President Donald Trump says he thinks a deal is in sight, and that his vice
president and secretary of state are leading negotiations.
An Iranian source describes the CNN "outreach" between Washington and Tehran, but that source also says there is skepticism that talks will
actually happen. Iran's Foreign Ministry, echoing that pessimism. Have a listen.
(BEGIN VIDEO CLIP)
ESMAIL BAGHAEI, IRANIAN FOREIGN MINISTRY SPOKESPERSON: We have a very catastrophic experience, I should say, with the United States diplomacy, we
were attacked two times within a span of nine months when we were in the middle of a negotiating process to resolve the nuclear issue.
So, this was a betrayal of diplomacy. It is very famous phrase in Iran right now, because it happened not once, but twice. So, no one can trust
the United States diplomacy.
(END VIDEO CLIP)
ANDERSON: It's been another day of attacks in Iran, in Lebanon, in Israel and across the region. This video shows a fire after Iranian drones hit a
fuel tank at Kuwait International Airport. We've got Matthew Chance with us this hour in Doha in Qatar. Zachary Cohen is in Washington.
Matt, let me start with you there. There's a lot of mixed messaging on these talks. So where do we understand that things stand at this point?
MATTHEW CHANCE, CNN CHIEF GLOBAL AFFAIRS CORRESPONDENT: Yeah, hey, Becky. Well, obviously it's a very confusing situation. On the one hand, you've
got United States saying talks are underway and they're going well, and that Iran really wants a deal. And then the other hand, you've essentially
got Iranian saying that's nonsense.
You know, the we're not even in direct talks with the United States. And the more that the United States insists that Iran wants a deal, the more
that Iran seems to insist that there aren't even negotiations underway, sort of ridiculing Washington for suggesting otherwise.
And so, we're all kind of in the dark about, what the nature of these negotiations are. We know that Pakistan has said that it's a mediator in
this and that it has handed over a 15-point plan to Iran. It sounds like the same 15-point plan that Iran has been negotiating with the United
States about for several months, frankly, which involves basically it handing over its nuclear material.
It's rolling back its missile program and opening the Strait of Hormuz and opening its nuclear sites to inspection, things like that. Basically, which
it's rejected in the past, and there's no indication yet that it's prepared to change its position. It's not even clear the United States expects it to
change its position, given that it is announced.
Or we are reporting at least, that even more American forces, ground forces are being dispatched to the area, presumably in preparation for some kind
of potential ground operation. What we do know that there are negotiations underway to parallel negotiations on a much more regional level.
We know the Omanis, for instance, have been engaged with the Iranians on a deal to potentially open the Strait of Hormuz, that's the very narrow
strategic waterway through which something like 20 percent of the world's oil and gas reserves travel through, rather exports travel through every
day, very crucial.
[09:05:00]
It's been essentially blocked off since Israel and the United States began its bombing campaign of Iran late last month. And we don't know what
progress, if any, has been made in those are many negotiations, but we do know they're real and they are actually taking place, which is saying a lot
more than we know of the supposed negotiations going on between directly between the United States and Tehran.
ANDERSON: Yeah. Thank you, Matt. Zach, amid this back and forth over whether or not we will actually see these talks about an end to this war,
as Matthew noted, around 1000 U.S. service men and women preparing to deploy to the Middle East. So, what do we understand to be the latest on
that?
And whether this is part of what was anyway, a sort of, you know, part of the plan, or whether this has been a sort of, you know, a new layer to the
Pentagon's sort of strategy here.
ZACHARY COHEN, CNN SENIOR NATIONAL SECURITY REPORTER: Yeah, Becky, it appears to be a new layer, as I'm told that U.S. officials have approved
orders to deploy members of the 82nd airborne paratroopers. This is an army division that is really predicated on its ability to deploy quickly
anywhere in the world.
It can deploy anywhere within 18 hours from its base in North Carolina. We're told that at least elements of the 82nd airborne have been or have
received their orders to deploy to the Middle East here in the coming days. And so, I think the questions though, are, what will their mission be when
they get there?
We know that Donald Trump has not ruled out the prospect of potentially using ground troops, U.S. ground troops in these combat operations, but the
same time is really hyping this diplomatic push that he is sort of reviving here in the murkiest of terms. And so, I think there's a question as to the
diplomatic effort is happening on one track, but then yet this military movement is happening on the other.
And we're told that other elements of the 82nd airborne could also be deployed, in addition to this initial group of 1000 U.S. troops. And
they're going to join two Marine Expeditionary units that are also making their way to the Middle East. So, this masking of U.S. forces, whether it's
a signal or whether they're being sent there for a specific mission that really does remain unclear at the stage.
ANDERSON: To both of you, thank you very much indeed. All right, as the war with Iran hits businesses in Europe as well as around the world. Spain's
Prime Minister doubling down on his opposition to the conflict. During an address to the Spanish Congress, Pedro Sanchez slammed both U.S. and Israel
for pushing what he calls an unjust and illegal war.
(BEGIN VIDEO CLIP)
PEDRO SANCHEZ, SPANISH PRIME MINISTER: What have the promoters of this illegal war achieved? In my opinion, this is what they have done. First,
undermined international law, destabilized the Middle East, reignited conflicts in Iraq and Lebanon, buried gas under the rubble, under rubble of
oblivion and indifference.
They brought insecurity to Gulf countries that, until less than a month ago were safe, encouraged nuclear programs in Pakistan and North Korea and
given Vladimir Putin more than 8 billion euros to finance his war and invasion in Ukraine. Thanks to rising fuel prices and the lifting of
sanctions, also brought about by the U.S. Administration.
(END VIDEO CLIP)
ANDERSON: That's Pedro Sanchez there. Well, the war does go on. Iranian missiles have been seen in the skies over Israel and the West Bank early
today. Rescue workers say at least nine people were hurt after an Iranian missile struck a city in Central Israel not far from Tel Aviv.
Six children are amongst those wounded there. CNN's Jim Sciutto is on the ground in Tel Aviv.
JIM SCIUTTO, CNN CHIEF U.S. SECURITY ANALYST: The other thing you're hearing are constant air raid warnings here. For the third time in the last
several hours, we went into the shelter because Iran is still firing missiles at Israel. Some of those are getting through.
Last night, a cluster munition got through, and there were no people killed, but there was damage here in Tel Aviv. And there's been a series of
these attacks coming from Iran, even in the midst of this discussion of the possibility of talks, and Israel certainly continues to fire at Iran.
So, the cross fire continues. When I've spoken to Israeli officials here, what they say is that if you look at the 15 point plan that the Trump
Administration presented to Iran, those are all points that Israel could get on board with, that they would consider progress, the shuttering of
those Iranian nuclear sites, an agreement that Iran would not be able to enrich material, nuclear material, on its own territory.
The trouble is, those are issues that Iran has not given ground on as recently as four weeks ago, right?
[09:10:00]
Or at least not to the president's satisfaction. So, the question of course, is, does the president feel that Iran is making concessions? I will
tell you this. Israeli officials have been telling CNN they do not believe this. Iranian regime is in a negotiating mood right now. A mood to give
ground on those we'll see whether that changes over the next several days. But there's a lot of skepticism here.
ANDERSON: Jim Sciutto is in Tel Aviv. Well, Israel's government is set to expand mobilization powers, and that move will raise the limit of
reservists who can be activated for duty from 280,000 to 400,000. It comes as Israel hits targets both in Iran and in Lebanon, where it is fighting
the Iran backed Hezbollah and has taken action to occupy what it calls a security zone in the south of the country.
Nick Paton Walsh, back with us today from Beirut. Nick, what do you see and hearing there?
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Yeah. I mean, we had overnight pretty relentless jets over Beirut, but it appears
one strike in the city itself, and this forms part of, I think, a wider pattern we're seeing here, instances in which Israel appears to be
expanding the things it considers to be targets.
We've had reports of gas stations being hit around the country. The IDF saying they are linked to Hezbollah infrastructure, but that feeds,
certainly here amongst the Lebanese, into the concept that anything Hezbollah are part of the political social fabric. Anything that might
potentially have any link to Hezbollah at all, could be hit.
And we've also seen two medics wearing medical uniform hit on a motorcycle in the town of Nabatieh. A number of motorcycles hit by, it seems, are
quite precise strikes there yesterday, their funerals today. So, a growing sense, I think, amongst the Lebanese that potentially, Israel's target list
is expanding to include things that they would normally be much clearer a civilian in nature.
We have seen bridges being struck between here and the south. Air strikes persisting in the southern part of Lebanon, which civilians have been
pushed out of by these forced evacuation orders from the Israelis over weeks now. And now increasing the pressure, because at least five bridges
have been blown across the Litani River, with the suggestion Israel may indeed try and occupy part of that land.
Their finance minister suggesting they might annex all of it up to the Litani River and strikes around the key City of Tyre which was de populated
by this conflict, but increasingly under pressure now as well. And so, we've just heard from Hezbollah's Leader here, Naim Qassem, calling for
national unity, saying that this is a moment potentially for Lebanese to rally together, praising the fight, that his fight has been able to put up
here.
And this feeds into the broader issue that Lebanon and is in at the moment, its government staunchly saying it wants to disarm Hezbollah, not finding
the ability to do that at this stage at all, frankly, seeing the displaced of a million destabilize the country across the board, and now facing the
prospect of Israel launching a more extensive, lengthier ground invasion.
They have just today potentially put in moves to put 400,000 reservists into the Israeli military. That is potentially a move that could be linked
to a wider ground occupation. Is that for leverage? Is that simply a desire for Israel to annex part of Lebanon for leverage and talks down the line,
they talk about a security zone, potentially up to the Litani River, is a fast part of the country itself.
And so many concerned here that the war escalated by Hezbollah seeking vengeance for the death of Supreme Leader Ayatollah Ali Khamenei, starting
this new escalation the conflict off, but one in which Israel, as I said, is increasingly expanding the list it thinks of what a viable target,
dragging Lebanon into it.
ANDERSON: Right, so --
WALSH: And the ultimate question of, how does a Lebanese government that to some degree shares the goal of disarming Hezbollah, that Israel does
achieve that without any military forces of its own, Becky?
ANDERSON: And I know we're still looking at the prospect, potentially, of talks between Israel and Lebanon. At the same time, and in the meantime,
how is -- briefly, how is Lebanon and reacting to the news of talks between the U.S. and Iran at this point, if at all?
WALSH: There will be a mixture, potentially, of relief at the idea that if there is a peace between the U.S. and possibly Israel that's entirely
unclear, Israel showing no white sign at this point, they're going to be pulled along by any particular deal publicly. And Iran, then that could
potentially be a window for calming the violence and escalating conflict here.
[09:15:00]
But it's important to remember, these are two entirely separate chapters here. And while the U.S., Israeli, Iranian conflict settles one potentially
long running moment of aggression and conflict in the Middle East, Israel and Hezbollah, this has been an issue for decades.
And it's one where the Israelis feel they have a moment to disarm Hezbollah, that is a task that's currently out of their reach, certainly
for now when you question whether or not the occupation of large parts of Lebanon south would increase the likelihood of that goal, or, in fact, make
so many Lebanese angry at the violation their sovereignty that again, it potentially provides Hezbollah great attraction within society, like we saw
during the 2006 war.
So a lot moving in that regard, but I don't think there's any sense here that a deal between the U.S. and possibly Israel and Iran, whether we see
that in the next 72 hours, is going to have an immediate impact on the issue here, which clearly seems to be Israel seizing the opportunity of
Hezbollah's desire for vengeance about the death of Ayatollah Khamenei, to continue to prosecute its desire to make sure Hezbollah is no longer a
threat.
That's a phenomenally ambitious task. As I said, Hezbollah is politically, societally into wind in so much parts of the south and even here in Beirut
as well. So, the notion you can switch it off through military force alone a little far fetch. We've seen diplomacy trying to get a grip here.
But, you know, weeks now, it seems that Lebanon has been offering direct talks with the Israelis, and publicly, at least, we have seen no traction
from that, just an escalating list of things that Israel considers a legitimate target be that medics bridges, things which its critics say are
both disproportionate and outside the norms of war, Becky.
ANDERSON: Nick Paton Walsh is on the ground for you in Beirut, Lebanon. Nick, good to have you there. Thank you very much indeed. You are watching
"Connect the World" with me Becky Anderson from our Middle East programming headquarters here in Abu Dhabi.
Other news today, passengers face another day of hours long lines at airports in the U.S. as the TSA warns that delays could extend past this
government shutdown. And Meta is found to have enabled the sexual exploitation of children as social media companies come under intense
scrutiny. More on that coming up.
(COMMERCIAL BREAK)
ANDERSON: Well, a warning from airport union officials it could take weeks for TSA staff to return after the U.S. government shutdown ends. Travelers
have already been contending with long lines at multiple airports, as TSA workers call out in large numbers, an estimated 61,000 workers have been
working without pay since mid-February.
They are expected to receive their paycheck this coming weekend, but many remain uncertain if that will happen. CNN's Senior U.S. National
Correspondent, Ed Lavandera is across this story for us today from George Bush Intercontinental Airport in Houston.
[09:20:00]
And Ed, lines at airports remain long. What are you seeing? Where you are specifically today?
ED LAVANDERA, CNN SENIOR U.S. NATIONAL CORRESPONDENT: Well, we are in Terminal E of this airport, and this is one of five terminals. There's
normally nine security lines, or nine security checkpoint areas where people can get through to get to their flights, and only two of those are
up and running.
And this is one of the terminals that is up and running. This is a fantastic vantage point of what this is like. This is only a portion of the
line. The line is so long inside the terminal that for a portion of the line, it spills out into an area that is normally a passenger drop off
here.
You can see the signs here. Normally people, if you look over here, off to the left, you see this is very similar. Cars come by, they drop off their
loved ones or their friends, and then move on. Well, these lanes, four lanes of traffic, have been taken up by these eight security lines that
wind their way through here.
And so, if you're standing out here right now, you probably still have another, I would guess, 2.5 hours of wait time before you get there. And
actually, there have been times over the last few days where the line starts two floors below where they are. So, it has been incredibly chaotic
and a nightmare for so many people to get through this.
And this is because, at this airport, over the last several days, there's been a nearly 40 percent call out from TSA security employees, and that has
really made things very difficult to get passengers through these security checkpoints as quickly as possible. So that's one of the challenges that
people are facing.
We have heard people showing up seven, eight hours ahead of their flight. I talked to one man who was trying to fly from Houston to Trinidad yesterday
who had missed his flight the day before, and he was showing up almost 12 hours before his scheduled flight yesterday afternoon.
He said he was not going to miss another flight that he needed to get home. So, you know, these are the kind of challenges that people are facing. And
what you hear over and over, the attitude from people has been very generous, actually, that, you know, they talk about this is what it is, and
they're trying to keep the best spirits.
ANDERSON: Yeah.
LAVANDERA: But you start talking about who to blame, and politicians, and everybody's angry at U.S. politicians for the way all of this is being
handled.
ANDERSON: Ed, did that guy who came 12 hours early to get through? Did he make it? Did you keep in touch with him?
LAVANDERA: I wasn't able to keep in touch with him. So, they were -- we met him in the line. He was moving very quickly.
ANDERSON: Yeah.
LAVANDERA: But he was about 45 minutes away from the front of the line about six hours before his flight. So, I'm going to assume that if he's
watching this, he is sitting at home in Trinidad.
ANDERSON: OK. Yeah. I've just been looking at those pictures and my producers in my ear. We were just saying. I mean, you know, there are worse
things in life, but I can't think of many. I mean, this is the nightmare sort of scenario, isn't it? That you are looking down on from that bridge.
I mean, there's very few things that would make me think that queue was worth it. I mean, obviously their emergencies, not withstanding, some
people will have to travel. But really, yeah, nightmare. Ed, it's good to have you. Thank you very much indeed. Well, a jury in New Mexico has found
that Meta, which owns Facebook and Instagram, of course, failed to protect children from sexual abuses.
In the landmark case, Meta was found liable for misleading users after the safety of its platforms and engaging in unconscionable trade practices.
Meta has been ordered to pay $375 million for violating New Mexico's consumer protection laws.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Social media has really become and as Meta, as a company itself and what it has come to represent, and should be trying to
represent better and in just protecting teens and people that are going to be on those platform --
(END VIDEO CLIP)
ANDERSON: Well, Meta says it will appeal the decision. CNN's Technology Reporter Clare Duffy has been following this case. She joins me now from
New York. In what ways did the jury find Meta failed to protect children, Clare?
CLARE DUFFY, CNN TECH REPORTER: Well Becky, this is a really significant decision, and coming after less than a day of jury deliberation on this
case. This lawsuit was filed by New Mexico's Attorney General back in 2023 and accused the company of failing to protect children on its platforms, by
failing to prevent bad actors from getting onto its platforms, contacting young people who they don't know, and also failing to warn parents and
teens about these risks.
And this jury found Meta liable on all counts founding that the company willfully engaged in unfair, deceptive and unconscionable trade practices.
As you said, the jury has now ordered Meta to pay $375 million in damages, and this is just the first phase of this trial, Becky, the next phase will
be presented directly to the judge, and could see Meta ordered to pay additional financial damages and also to make changes to its platforms.
[09:25:00]
Now, as you said, Meta is planning to appeal this decision, and I'll read to you a statement from a Meta spokesperson following this decision
yesterday. They told me quote, we respectfully disagree with the verdict and will appeal. We work hard to keep people safe on our platforms, and are
clear about the challenges of identifying and removing bad actors or harmful content.
And look, Becky, $375 million is sort of a drop in the bucket for a company as big as Meta, but this is a really significant moment, because for years,
we have been hearing concerns from parents and lawmakers and advocates about risks to children from these platforms. This is the first time a jury
is holding Meta accountable for those risks.
ANDERSON: We've been hearing those concerns from some of the characters who actually run these companies themselves. It has to be said when asked about
their own children, by the way, this is just one of many cases against social media giants. And you talk about the significance of this, and
you're absolutely right to underscore and the consequences going forward are yet to be sort of explored.
What can we expect from the following cases after this verdict?
DUFFY: Well, Becky, we're still awaiting a decision from the jury in the Los Angeles trial against both Meta and YouTube, accusing the companies of
intentionally addicting young people and harming their mental health. We are going to be soon entering day nine of jury deliberations in that case,
so awaiting a decision there.
But I think stepping back and looking at the bigger picture here, this New Mexico case, I think certainly could set a precedent for other states to
follow. And I also know that many parents are hoping that lawmakers are watching these cases, watching, as you said, the testimony from whistle
blowers, former employees, and also the internal documents that we're seeing coming out, shedding light on what these companies have known about
the risks to users.
And potentially being motivated by all of that to pass more comprehensive online safety regulations for children, Becky. So, all of that, I think,
could potentially come out of this wave of legal pressure that we're seeing against Meta and the other social media companies.
ANDERSON: Clare is in New York today. Well, the time is just before half past nine. Thank you. Still to come. Cautious optimism on Wall Street, DOW
futures are up and oil prices are lower on hopes of a resolution to the war in Iran. We are awaiting the opening bell. We will get you that after this.
(COMMERCIAL BREAK)
[09:30:00]
ANDERSON: Right. An Invest America today is the organization ringing in the trading day this Wednesday, the futures markets were indicating relatively
positive start to the session today across these three markets, or indices. Let's have a look and see how they get on. That's the bell for you.
And let those markets settle a little bit, the oil price is slightly lower. There is a sense that investors may feel there's an opening here to see an
end to this war, but that's not clear at this point as to whether that is indeed the case as these, I would continue to hear mixed messaging on these
talks.
But the DOW JONES certainly off to a relatively robust start there, more than 1 percent higher on the open 46,000 and change more than change 46.5
thousand there. And as that also higher, and the S&P by about the same. Well, Iran will absolutely keep charging a fee for safe passage through the
Strait of Hormuz.
Certainly, according to a senior Iranian official, who said in an interview on Tuesday that countries not involved in the war can still pass through
what is that critical shipping waterway, but must first coordinate with authorities in Tehran. Tracking data appears to show several ships have
passed through the strait in the last day, though, CNN cannot independently verify those journeys.
My next guest is one of the few economists who correctly predicted the 2008 global economic crash. She wrote about it in the coming first world debt
crisis, which was published two years before that crash. Well, in her latest book, "The Global Casino, How Wall Street Gambles with People and
the Planet".
She writes about how remote mobile financial markets are affecting everything from the cost of living to the climate crisis. Ann Pettifor
joins me now. She's also Director of Policy Research in Macroeconomics or PRIME. It's good to have you. Markets bounced, certainly on the open, on
the hopes of a U.S.-Iran deal, even as strikes continue, Ann, how fragile is this rally?
ANN PETTIFOR, DIRECTOR OF POLICY RESEARCH IN MACROECONOMICS: Yeah. But I mean, it's so hard to tell, and there's so much uncertainty. But the fact
of the matter is that the whole picture is very unbalanced, the whole global picture, if you like. And so, what we've done is to throw this war
into what is already a system which is unstable, and in my view, unbalanced, heavily unbalanced.
And with a dozen or so bubbles bubbling along the surface of the global economy. So, I think there's quite a lot still to worry about.
ANDERSON: I just want our viewers to have a listen to Larry Fink at Blackrock, CEO, who's on the BBC earlier. Have a listen.
(BEGIN VIDEO CLIP)
LARRY FINK, CEO OF BLACKROCK: If there's a cessation of war, and yet Iran remains a threat, a threat to trade, a threat to the Straits of Hormuz,
then I would argue that we could have years of, you know, above $100 closer to $150 oil.
UNIDENTIFIED MALE: What happens the global economy? If that happens, how do we see?
FINK: We'll have global recession?
(END VIDEO CLIP)
ANDERSON: Do you agree?
PETTIFOR: Yes, I do. And you know, I really worry that we're going to have a kind of implosion. And one of the sectors that are most vulnerable is, my
view, the AI sector, most vulnerable not just to the general imbalances, the fact that they're now net debtors, when before, they were using their
own cash for investment, because they -- a lot of them, the money going into AI has come from the Gulf.
Has come from Gulf countries. Last year, they invested something like $70 billion in AI. It's not clear to me that they're going to be able to
maintain that level of investment. And so, what the AI think hyperscalers are doing is looking to the debt markets and shifting risk away from
themselves and on to bond holders.
And in the case of setting up IPOs in the summer, the risk will be shifted on to shareholders. I think that is an indication of their lack of
confidence in the system.
ANDERSON: Yeah.
PETTIFOR: So, I'm worried about, worried about the fact that there is new technology appearing, even as we speak, where you know, open-source tech
guys are downloading a new program, something called Llama, which will enable people to build local, large language models on their own computers,
on their own iPhones, and without need for the big hyperscalers.
And I think that poses a threat to the AI sector, which, in turn, because so much is invested in it, so much of the American stock market is
dependent on AI, will actually spread the risk even further.
[09:35:00]
And it's really interesting, Becky, there is parallel with what happened to the music industry in the 1980s. In those days, musicians had to go into
these big studios with big mission control tech, you know, and pay $2.5 thousand a day to get their music recorded. And then someone invented
something called GarageBand.
And now all music seems to be recorded in people's bedrooms. I think you will see a similar thing happening with large language models that will go
on to computers and iPhones and prevent hyperscalers from harvesting data, but also make it possible for people to use large language models without
having to pay a subscription to --
ANDERSON: Yeah,
PETTIFOR: I think that poses the sector as well.
ANDERSON: I get where you're at. I mean, I think I'm not sure that you know, the threats you see around the AI sector going forward are
necessarily associated with this conflict. I hear what you're saying about the Gulf. I have to be the Gulf investment in AI. I have to be absolutely
clear, certainly from the UAE's point of view, and they have been absolutely clear on doubling down on their investments.
PETTIFOR: Right.
ANDERSON: But I do see where you see some risk to the wider market and the, you know, reliance that these indices have, as they go higher, on the tech
companies, you know, sort of underpinning that bounce.
PETTIFOR: Yeah.
ANDERSON: I guess there's a couple of questions I've got for you. I mean, economists argue that today's banks are far more resilient than, for
example, in 2008 but we've seen the emergence of this private credit market. And I wonder which a lot of people are concerned about at present.
There seems to be some real vulnerability there, and indeed in sovereign debt. So again, you know, how risky do you believe, leaving aside the sort
of AI market and how that can disrupt, you know, our very lives and the lives of investing and all the rest of it?
PETTIFOR: Yes.
ANDERSON: I'm just wondering about these different sorts of assets classes, and where you see the risks there?
PETTIFOR: Well, I think private credit is the sort of subprime mortgage crisis of 2007. It's only a very small part of the global financial system.
But nevertheless, it's the fact that, you know that is it's imploding, and investors are getting out as fast as they can. It's an indication of the
kind of uncertainty that there is.
So, I think we just have to be careful. This is not just another canary in the coal mine, and I think it is a canary in the coal mine, and it's not
been taken seriously. But it's -- but in itself, it's not going to do the thing, really. So, I -- you know, I think there's quite a lot to worry
about.
Sovereign debt is a big issue. The fact that flows to poor countries are now lower than flows from poor countries into rich countries, that's going
to cause instability, that's going to cause political tensions, that's going to cause defaults probably on sovereign debt. So, we are rarely
stretching the stability of the system beyond its capacity, it seems to me.
And you know, we said all these things, but the banks being solid and sound. Back in 2005 and 2006, we thought they were solid and -- the banks
are not the problem, because high street banks, Main Street banks, are really not in this game. There is bigger game, which is the shadow banking
system, which is actually beyond the regulatory reach of the Federal Reserve effectively.
And has been the cause of all the financial crises of the last period, you know, the DFC, but also around COVID, and also around Silicon Valley and so
on.
ANDERSON: It's good to have you. I'm going to have to wind this up because I have got to take a break. It's really good to have you. As you talked
about garage music, it reminded me, house and garage are very much my generation, my youth. You make me feel. I don't know either old or young
today, I don't know which one it is.
Anyway, Ann, thank you. U.S. President Donald Trump suggesting a goodwill gesture from Iran that he described as a mystery present has helped with
diplomatic efforts to end the war. He says the gift is an indication that the Iranian negotiators talking with his administration were willing to
follow through on their promises.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: They gave us a present, and the president arrived today. It was a very big present worth a
tremendous amount of money. It was oil and gas related, and it was a very nice thing they did, but what it showed me is that we'll the right people.
(END VIDEO CLIP)
ANDERSON: Well, I discussed that statement with the Director of the Iran project international -- the Iran project at the International Crisis Group
Ali Vaez, a few hours ago. He gave me his take on what Mr. Trump may have been talking about there.
[09:40:00]
And whether the Iranian regime is in any kind of mood to talk right now to his mind. You'll be able to find part of that conversation on my social
channels, @beckycnn on Instagram and X. Check those out. We will be right back.
(COMMERCIAL BREAK)
ANDERSON: We'll get ready to save it the next two months, if you are a Liverpool fan, because it will be the last that you will see of Mohamed
Salah in a red jersey. The Egyptian star, announcing that he will leave the club at the end of the season. Amanda Davies will have that in "World
Sport" after this short break.
My colleague Christina Macfarlane is going to pick up for me with the second half of "Connect the World" in 15 minutes. I'll see you same time,
same place --
(COMMERCIAL BREAK)
[09:45:00]
(WORLD SPORT)
[10:00:00]
END
