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Quest Means Business
Vatican Celebrates First Christmas with Pope Leo; Zelenskyy Signals Willingness to Compromise on Donbas; California Hit with Powerful Christmas Eve Storm; Presidential Tour Of The Elysee Palace; "A.I. Bubble" Concerns Sparked Investor Debates Throughout 2025; Small Businesses Try To Weather Trump's Trade War. Aired 4-5p ET
Aired December 25, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:31]
SALMA ABDELAZIZ, CNN INTERNATIONAL HOST: Welcome to the show.
Merry Christmas!
The U.S. markets are closed for the holiday, but here are the stories we are following today.
Pope Leo urges courage to end the war in Ukraine in his first Christmas address.
Another storm hits California, bringing more flooding and high winds.
And we speak to people putting their hearts into Christmas pinatas to watch them fulfill their Christmas destiny getting smashed for treats.
Live from Atlanta. It is Wednesday, the 25th of December. I'm Salma Abdelaziz and this is QUEST MEANS BUSINESS.
Good afternoon.
As many people around the world celebrate Christmas today, Pope Leo is denouncing the suffering of those in Gaza while calling for courage to end
Ukraine's war with Russia.
In his first Christmas message, the pontiff highlighted the urgent need for conversation over conflict. The first U.S. born Pope urged Russia and
Ukraine to engage in direct talks to put an end to nearly four years of war.
(BEGIN VIDEO CLIP)
POPE LEO XIV, BISHOP OF ROME, HEAD OF THE CATHOLIC CHURCH AND SOVEREIGN OF THE VATICAN CITY STATE (through translator): This is the way of mission, a
path towards others. In God, every word is an addressed word, it is an invitation to conversation, the Word never closed in on itself.
This is the renewal that the Second Vatican Council promoted, which will bear fruit only if we walk together with the whole of humanity, never
separating ourselves from it.
(END VIDEO CLIP)
ABDELAZIZ: Pope Leo also called out the devastating humanitarian conditions in Gaza, asking for justice, peace and stability in the Palestinian
territories, Israel, Syria and Lebanon.
Christopher Lamb is in Rome with more on Pope Leo's first Christmas as head of the Catholic Church.
(BEGIN VIDEOTAPE)
CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: Well, despite the cold and the rain, thousands gathered in St. Peter's for the first Christmas celebrated
by Pope Leo since his election.
Leo was out in the Popemobile on Christmas Day and on Christmas Eve, before the midnight mass came out to the Square to greet the thousands gathered
under umbrellas to follow the mass from outside. He said he admired them for their courage in coming out to be part of the celebrations.
Now, Leo, in his messages, has emphasized that Christmas is about peace. He specifically called for peace and for concern and solidarity with people in
Gaza and he made that call during the homily that he gave on Christmas Day morning from St. Peter's Basilica.
POPE LEO XIV (through translator): How then can we not think of the tents in Gaza exposed for weeks to rain, wind and cold; of those so many others,
refugees and displaced persons on every continent, or of the makeshift shelters of thousands of homeless people in our own cities.
LAMB: Leo came out onto the balcony of St. Peter's where he greeted people in different languages, wishing them a Happy Christmas. He spoke in Arabic,
in Chinese, in Polish, showing his linguistic skills.
Leo, in his Christmas message calling for the guns to fall silent in Ukraine. Before Christmas, he said he hoped that there could be a ceasefire
in Ukraine just for Christmas Day for 24 hours.
He also talked about different conflicts taking place around the world, trying to bring the Christmas message to the here and now in what he was
saying. Leo seeming in festive spirit, seeming happy to be marking the first Christmas since his election.
Christopher Lamb, CNN, Rome.
(END VIDEOTAPE)
ABDELAZIZ: Even on Christmas Day, there is no time off from the war in Ukraine or from the efforts to end it.
Ukrainian President Volodymyr Zelenskyy says he spoke today with Donald Trump's chief negotiators in the peace process; Steve Witkoff and Jared
Kushner and it comes a day after Mr. Zelenskyy signaled a willingness to compromise on what has been a major sticking point.
[16:05:09]
The Ukrainian President indicated he might withdraw troops from the Donbas to create a demilitarized zone if Russia agrees to do the same.
Now, this comes as the kremlin says it is analyzing the new 20-point peace plan put forth by Ukraine, as CNN's Nada Bashir explains, what's inside
this proposal.
(BEGIN VIDEOTAPE)
NADA BASHIR, CNN REPORTER: In his Annual Christmas Address to the Nation, Ukrainian President Volodymyr Zelenskyy paid tribute to those on the front
line, as well as those celebrating the holidays away from home, praying for peace in Ukraine.
But he also drew focus to Russia's continued assault on the country.
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): On Christmas Eve, the Russians once again showed us who they really are -- massive
shelling, hundreds of Shahed drones, ballistic missiles, Kinzhal missiles - - everything was used.
This is how godless people strike. This is what those who have absolutely nothing in common with Christianity or with anything human do, but we
holding on.
BASHIR: Christmas Day in Ukraine was marked by yet another large scale attack by Russia, targeting a market in the center of Kherson. At least one
person is reported to have been killed, according to a regional military official.
The attack comes despite apparent indications of progress in peace talks. Zelenskyy this week signaled his willingness to make concessions on several
key negotiation points, most crucially, concessions on withdrawing troops from parts of the Donetsk region still under Ukrainian control.
In return, Russia would be expected to also withdraw its forces from parts of Ukraine, effectively ceding control of an equivalent amount of territory
and effectively establishing a demilitarized zone.
The proposed withdrawal comes as part of a broader 20-point peace plan, hammered out by the U.S. and European allies.
In addition to concessions on territory, Ukraine is also asking for guarantees when it comes to its security and economic recovery through
concrete commitments from the U.S., as well as European and NATO states.
Moscow has not offered any details regarding peace talks. However, Kremlin spokesperson, Dmitry Peskov told reporters earlier this week that the
Kremlin would continue to maintain contact in the near future through existing channels.
Nada Bashir, CNN in London.
(END VIDEOTAPE)
ABDELAZIZ: Wounded Ukrainian veterans are finding comfort from an unlikely source, one with a wagging tail and a familiar story of courage.
CNN's Ryan Young has more for us.
(BEGIN VIDEOTAPE)
RYAN YOUNG, CNN SENIOR NATIONAL CORRESPONDENT (voice over): Meet Lavr, a Ukrainian therapy dog tasked with helping war veterans recover. Lavr is not
like most therapy dogs, he is fitted with two prosthetic front paws.
"WILD", UKRAINIAN WAR VETERAN (through translator): I feel a sense of emotional relief, especially with a dog here on prosthetics, just like us.
It's truly wonderful.
YOUNG (voice over): Lavr's artificial limbs have not slowed him down. His owner runs a rehabilitation center in Kyiv, where Lavr plays and visits
with patients almost every day. A lot of the patients also have prosthetics and say it's nice seeing a canine friend like them.
IVAN ZHADANI, UKRAINIAN WAR VETERAN (through translator): The dog wants to live just like we do, and I will walk too, not on four legs, but on two.
DMYTRO ZUBARIEV, UKRAINIAN WAR VETERAN (through translator): The dog can walk now, and I will too as well. Soon, I will be able to walk too.
YOUNG (voice over): Lavr's owner and the center's founder says he was rescued near the Odesa railway station, where he lost two front paws in an
accident. After he recovered, bioengineers in Dnipro gave Lavr prosthetic front paws using the same technology being used for wounded Ukrainian
soldiers, bone-integrated titanium implants.
VIACHESLAV ZAPOROZHETS, FOUNDER, TYTANOVI REHABILITATION CENTER (through translator): It's remarkable that our work inspired the veterinarian to
perform osseointegration on this dog, and it succeeded.
YOUNG (voice over): He says that, when he saw Lavr's photos online and read about him, he knew he wanted to adopt him. Now Lavr has accepted his new
paws and new home as his own.
ZAPOROZHETS (through translator): The most important thing is that the dog has accepted the prosthetics. He doesn't chew them. He licks them, treating
them as his own paws. If they felt artificial to him, he would have chewed them off. He's a dog, after all.
YOUNG (voice over): Lavr's playful energy brings joy to the patients. He says his attitude inspires him to work harder to recover, just like Lavr
did.
Ryan Young, CNN, Atlanta.
(END VIDEOTAPE)
ABDELAZIZ: Still to come tonight, another storm slams into California on Christmas Day. We will look at the forecast to see what's on the way.
(COMMERCIAL BREAK)
[16:11:45]
ABDELAZIZ: California is cleaning up from a powerful Christmas Eve storm and preparing for more wet weather. Los Angeles saw a typical December's
worth of rain in one day, and mountain regions have already seen several inches of snow.
The storm knocked over trees and flooded major roadways. More than seven million people across Southern California were at a high risk of flooding.
At least two people have been killed in weather-related incidents.
CNN meteorologist, Allison Chinchar has a preview of what is still to come.
(BEGIN VIDEOTAPE)
ALLISON CHINCHAR, CNN METEOROLOGIST: More than half a foot of rain has already fallen across portions of California, and these numbers are
expected to go up over the next 24 hours as more rain is expected to come into these areas.
We have an excessive rainfall risk for the remainder of today, as well as portions of Friday across Southern and Central California in anticipation
of the extra rain that is coming in.
Now, that first wave already began earlier this morning, that will continue through the afternoon and early evening hours, but then we have our next
round, that's set to come in maybe around 7:00 to 9:00 P.M. local time tonight, across portions of Northern and Central California.
But that system begins to slide southward so that by the time we really get into much of the latter half of the day, Friday, the focus for rain will be
over Southern California, then the good news comes.
Take a look at this, as we head into the weekend, finally getting some much needed drier conditions across that state. Unfortunately, until we get to
that drier portion, we still have more rain in the forecast. You're looking at widespread rainfall totals of an extra one to three inches, but some of
those spots, especially where you see the orange and red color here, could be looking at an extra four to six inches total before this is all said and
done.
In terms of snowpack, still looking at, at least an additional three feet of snow across the Sierras. This is going to make it very difficult for
travel over the next 24 to 48 hours, especially if you're headed from Reno and Tahoe, maybe going West over to Sacramento or San Francisco or vice
versa in the opposite direction.
You are likely going to encounter some delays on the roadways there just because of how much snow is expected to come down. In addition to the rain
and snow, we also have very gusty winds, and that's not just for California. You can see several neighboring states here, also, looking at
some of those high wind alerts where you could be looking at wind gusts up around 40 to 50, even as much as 60 miles per hour as we head through the
next couple of days.
So that's also going to cause some travel concerns, mainly in the airways. So keep in mind you may end up having some airline delays in some of these
major cities.
One thing we talked about again is the heavy amounts of snow. Keep in mind this three to six feet of additional snowfall is on top of what these areas
have already had. And we know that many of these locations have already picked up one to three feet just in the last few days, which is likely
going to incur some additional travel problems.
(END VIDEOTAPE)
ABDELAZIZ: U.S. President Donald Trump is spending the Christmas holiday at his resort in Palm Beach, Florida. On Wednesday, he and the First Lady took
part in a longstanding holiday tradition as they fielded calls from excited kids across the country awaiting Santa's arrival.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: We track Santa all over the world. We want to make sure that Santa is being good. The
Santa is a very good person. We want to make sure that he is not infiltrated, that we are not infiltrating into our country a bad Santa.
So we found out that Santa is good. Santa loves you. What would you like Santa to bring?
[16:15:16]
UNIDENTIFIED CHILD: Not coal.
TRUMP: Not coal! not cool. You don't want -- well, coal is, you mean clean, beautiful coal? I had to do that. I'm sorry.
(END VIDEO CLIP)
ABDELAZIZ: Following those calls, President Trump went on to post a Christmas message on social media criticizing those he described as radical
left scum.
Now, as we close in on the end of 2025, we are taking a look at the Top Ten Most Watched Videos on CNN.
Our Boris Sanchez can break them down for you.
(BEGIN VIDEOTAPE)
BORIS SANCHEZ, CNN ANCHOR (voice over): Number ten, Trump targets Iran. Hours after the United States began its precision airstrikes on three
nuclear facilities, in an unprecedented aerial bombardment of Iran, the president spoke to the nation.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Tonight, I can report to the world that the strikes were a spectacular military success.
SANCHEZ (voice over): In the aftermath, some members of Congress openly questioned the constitutionality of the strikes, while others, especially
MAGA lawmakers, supported the administration.
Number nine, L.A. devastated. Satellite images showing the breadth and depth of the runaway Eaton Wildfire. The fast-moving flames this past
January forcing thousands to flee their homes in search of higher and safer ground. Devastation like this will take years to rebuild.
Number eight, a shocking midair collision caught on tape. On January 29th of this year, an American Airlines flight, operated by American Eagle, and
a U.S. Army Black Hawk helicopter collided over the freezing Potomac River at night. The tragedy caught on tape. The jet was on final approach to
Reagan National, while the helicopter had been performing a required flying evaluation. All 67 people aboard both aircrafts died.
Number seven, an American is pope. In May, shortly after the death of Pope Francis, the College of Cardinals elected their next leader. And to the
surprise of many, the choice was this man, Chicago's very own cardinal, Robert Francis Prevost, the first Augustinian pope.
POPE LEO XIV: I invite you to recognize the marvels that the Lord has done.
SANCHEZ (voice over): Even more surprising, he briefly spoke in English during his first mass.
Number six, hot mic. Justin Trudeau, who at the time was Canada's prime minister, overheard making a jaw-dropping admission to business leaders
back in February, essentially telling them that President Trump's talk of making Canada a 51st U.S. state was no joke. So far, Canada remains Canada.
Number five. Cramer speaks out. Famed CNBC broadcaster Jim Cramer appearing on Erin Burnett's show earlier this year, admitting he was misled by the
Trump administration's tariffs policy.
Listen.
JIM CRAMER, FORMER CNBC BROADCASTER: Over and over again the president said, listen, it's going to be reciprocal. So, you do it. We do it. And
that was going to be so great. And I really believed in it. And I feel like a sucker tonight.
SANCHEZ (voice over): Number four, swallowed whole. A father on a kayak captures the moment his son, Adrian, was briefly swallowed by a humpback
whale off the coast of Chile. Adrian told CNN he didn't realize at first it was a whale and thought he just got caught up in a big wave.
ADRIAN: If the whale had hit me, it would be more dangerous.
SANCHEZ (voice over): What a story to tell his grandkids.
Number three, beauty influencer gunned down. Valeria Marquez was shot and killed by a man who entered her salon, all while on a TikTok livestream in
Zapopan, Mexico. Her death sending shockwaves through a country grappling with frequent suspected cases of femicide.
Number two, Jimmy Kimmel speaking out after a brief suspension following controversial comments he made about conservative activist, Charlie Kirk,
Jimmy Kimmel returned to ABC late night to say he never intended to make light of Kirk's murder, also delivering powerful remarks about freedom of
speech.
JIMMY KIMMEL, HOST, "JIMMY KIMMEL LIVE": This show is not important. What is important is that we get to live in a country that allows us to have a
show like this.
SANCHEZ (voice over): And the number one viral video on CNN's countdown, the feud seen round the world.
ZELENSKYY: Get out so --
TRUMP: Wait a minute. No, no, you've done a lot of talking.
SANCHEZ (voice over): On the left, the Ukrainian president, Volodymyr Zelenskyy, hoping to win more lethal aid from the President. On the right,
President Trump, moments before he would launch into a verbal rampage against Zelenskyy.
Boris Sanchez, CNN, Washington.
(END VIDEOTAPE)
[16:20:09]
ABDELAZIZ: A Christmas tradition that's made to be broken. We will take a look at Mexico's love Christmas pinatas.
(COMMERCIAL BREAK)
ABDELAZIZ: Welcome back.
I'm Salma Abdelaziz.
Here are the international headlines we are watching today.
Pope Leo denounced the suffering of those living in Gaza during his first Christmas message. The first U.S. born pontiff highlighted the need for
conversation over conflict, urging Russia and Ukraine to engage in direct talks to put an end to nearly four years of war. The Pope called on the
faithful to reject hatred, violence and opposition, and to practice dialogue, peace and reconciliation.
In Nigeria, police say at least five worshipers were killed when a suspected suicide bomber detonated an explosive inside a mosque on
Wednesday. Dozens of other people were injured. No one has claimed responsibility for the attack in the northeastern state of Borno, but the
area has been battling an Islamist insurgency by Boko Haram for years.
Now, California is getting a brief break from a powerful winter storm. Heavy rain and snow fell throughout the state on Christmas Eve, and there
were thunderstorms Christmas Day around San Francisco. Evacuations were ordered for parts of Southern California, where wildfires have left some
areas vulnerable to mudslides. More wet weather is forecast in the hours ahead into Friday.
Now, Britain's Royal Family has attended the Annual Christmas Church Service in Sandringham. The King and Queen were joined by the Prince and
Princess of Wales, as well as their children, Princesses Beatrice and Eugenie were also in attendance. Now that's being seen as a show of support
by the King, in spite of the scandal surrounding their Father Andrew and earlier, King Charles broadcast his Annual Christmas Message in a
prerecorded statement from Westminster Abbey.
The King reflected on the theme of journeys and pilgrimage as he looked back on 2025.
(BEGIN VIDEO CLIP)
KING CHARLES III, UNITED KINGDOM: A few weeks ago, the Queen and I were delighted to make a state visit to the Vatican, where we prayed with Pope
Leo in a historic moment of spiritual unity.
Together, we celebrated the Jubilee theme "Pilgrims of Hope."
Pilgrimage is a word less used today, but it has particular significance for our modern world and especially at Christmas. It is about journeying
forward into the future, while also journeying back to remember the past and learn from its lessons.
(END VIDEO CLIP)
ABDELAZIZ: British T.V. viewers saw a special musical moment at the beginning of the Annual Christmas Carol Service, which aired last night.
A video was shown of Catherine, Princess of Wales, and her daughter Charlotte playing a festive piano duet. The Carol Service was hosted by
Catherine and was filmed at Westminster Abbey in London earlier this month, with about 1,600 people in attendance.
Now, a selection of British artists sang and speakers including Prince William; actors, Kate Winslet and Chiwetel Ejiofor, delivered poignant
readings, all tied to the theme of love, compassion and connection.
Boldly colored pinatas stuffed with sweet treats are a very familiar sight across Mexico on Christmas, and they are lovingly made by hand, even though
they are ultimately meant to be broken.
[16:25:10]
CNN's Polo Sandoval has more on this tradition still holding strong.
(BEGIN VIDEOTAPE)
POLO SANDOVAL, CNN CORRESPONDENT (voice over): Star-shaped pinatas in Mexico. The colorful paper shapes won't last long after a few well-placed
hits from partygoers, but this holiday tradition in Mexico, it is about more than just candy --
UNIDENTIFIED FEMALE (through translator): I think pinatas unite us. The fun that breaking pinatas brings.
SANDOVAL (voice over): You see, making pinatas is a labor of love in some Mexican workshops, especially the star-shaped ones, which are the star
attractions of Mexican Christmas parties called posadas.
They commemorate Mary and Joseph's journey to Bethlehem. The seven points of the star symbolize the seven deadly sins and the sweet treats inside,
they are the reward for good overcoming evil.
And in the weeks before Christmas, everyone in the shop pitches in to help with production, even those still learning the family business.
JAYDEN HERNANDEZ ORTIZ, FAMILY OWNS PINATA BUSINESS (through translator): This time of year is beautiful because it is a tradition carried out every
year, started by my grandmother, now passed on.
I am the third generation continuing this tradition.
SANDOVAL (voice over): A product made to be destroyed, but workers say they still put a lot of love into them.
JAQUELINE GARCIA GONZALEZ, ARTISAN (through translator): We always try to give it that touch, some love, so that people are attracted to them.
Because sometimes when you make things in a rush or just for the sake of making them, well, you don't transmit that and that's what we look for in
pinatas.
SANDOVAL (voice over): From the workshops to the posada, star pinatas are a tradition dating back centuries, bursting with the Christmas spirit.
UNIDENTIFIED MALE (through translator): I mean, we like parties. We like to put emotion into everything, and the colors reflect that.
They reflect it as a symbol of joy.
SANDOVAL (voice over): Polo Sandoval, CNN.
(END VIDEOTAPE)
ABDELAZIZ: A Sheriff in Ohio was surprised to find the driver he had pulled over for speeding appeared to be Santa Claus.
Police bodycam footage shows a man behind the wheel as you can see, there dressed like Jolly Old Saint Nick and a passenger dressed as Mrs. Claus. In
the video, the Sheriff asks Santa for his I.D. and then shared a laugh with the couple over the unique situation.
(BEGIN VIDEO CLIP)
OFFICER: Oh my gosh, this is a video of the night. You know what's funny? I just love working. There goes my presents. You guys have a wonderful night.
Merry Christmas!
(END VIDEO CLIP)
ABDELAZIZ: A Facebook post on the Fulton County Sheriff's page says the Santa driver was let off with a warning and told to just slow down.
And finally, Christmas Eve brought a very special present to a lucky lottery player in the United States. Someone in Arkansas won the second
biggest lottery prize in U.S. history, a whopping $1.8 billion.
We are still waiting to find out who owns that valuable ticket. The winning numbers were 4, 25, 31, 52, 59, and the Red Powerball number is 19.
Now, how did the prize get this big? Wednesday's jackpot had been growing since two tickets split a $1.7 billion prize back in September.
Thank you so much for joining us. I am Salma Abdelaziz in Atlanta.
Merry Christmas to all who celebrate.
(COMMERCIAL BREAK)
[16:30:48]
RICHARD QUEST, CNN HOST: A festive mood on Wall Street and for good reason. Investors had lots to cheer about as they saw gains, gains, and more gains.
Hello, welcome to this Christmas edition of Quest Means Business.
What a year it has been. We had A.I., we had trade wars, and we had a brutal battle, it seems, between the White House and the Fed. And
throughout it all, the markets seemed to sail majestically on.
So, what did we get up to? Well, we visited some palaces, we went to a gold refinery, we even assembled some furniture that was strong enough to carry
my weight. Yes, indeed, it was a great year, and we had lots of fun.
There were two initials that were with us throughout the year, the central forecast of the whole investment world, A.I. Wherever we went, it was A.I.
this, A.I. that, A.I. the other. Deals worth hundreds of billions of dollars were done, and NVIDIA became the first company to be worth $5
trillion. We all knew that A.I. was crucial to our future.
(BEGIN VIDEO CLIP)
CATHIE WOOD, CEO, ARK INVEST: This is the opposite of the tech and telecom bubble. That's why this is sustainable. This is the proverbial wall of
worry. Those are the strongest bull markets. They climb a wall of worry and they broaden out over time and that is what is happening now.
(END VIDEO CLIP)
QUEST: But somehow, we also knew that there was a bubble brewing in the market, and some investors were extremely concerned.
(BEGIN VIDEO CLIP)
MOHAMED EL-ERIAN, RENE M. KERN PRACTICE PROFESSOR, WHARTON SCHOOL: Compare it to the other extreme, the tulip bubble, where people were betting on
tulips. That was completely irrational. This is rational.
There will be winners, but you're betting on many, many horses. A few horses will get enormous payoffs, and the rest are going to end up in the
blue factory.
(END VIDEO CLIP)
QUEST: Throughout the year, it became obvious there were two main countries when it came to A.I., the United States and China, which caused great
concern and consternation in Europe, which feared it was being left out and would have sovereignty issues if it had to rely on the others.
That's why President Emmanuel Macron told me that Europe had to play its part, and France wanted to be a leader. We discussed it when I visited the
Elysee Palace.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, FRENCH PRESIDENT: We need an A.I. agenda because we have to bridge the gap with the U.S. and China on A.I. Otherwise, we will
consume, we will use the A.I. being produced and invented in the U.S. and China. But we will not be the one to control ours.
QUEST: How much is your thinking and your execution being put on turbo charge by the new administration, and it's much more muscular, some would
say, brutal way in which it's basically saying, we're going to do it. Europe, we're going to do it anyway.
MACRON: Look, I will be very clear. I think the election of President Trump is as well a wake-up call on top of the others for the Europeans. It means
you cannot procrastinate anymore. So this is why I will work very hard to have, obviously, the backing of France, but some key countries, with Ursula
von der Leyen and her team, in order to deliver this package and this agenda.
(END VIDEO CLIP)
QUEST: Now, the purpose of my visit was, of course, to discuss A.I. and economics. But I couldn't leave without cheekily asking for a tour. I
wanted to see the artworks. Magnifique.
(BEGIN VIDEOTAPE)
MACRON: I want to show you a very special room. Here is the Salon Cleopatre with an Oppenheimer and some contemporary art as well.
QUEST: Do you get involved? Do you choose?
[16:35:01]
MACRON: Definitely. And in fact, we go with Mobilier National and some of our museums in order to choose the pieces which will be put here.
And here was, in fact, the room of La Pompadour. This palace was made by aristocrats in the 18th century. Here it was completely recreated by
contemporary artists and designers. French designer, Bismuth. And here is a mural tapestry. Beautiful.
QUEST: What happens if the dogs go on this?
MACRON: No, they don't. They don't go. Please, respect the instructions.
QUEST: I can see who's the boss.
MACRON: We have a very special place called the Pantheon. It was a former church and it's where great people are buried in recognition. And I decided
for the centenary of the end of the First World War to put all the veterans, symbolically, of the First World War. And I asked a piece of art
to Anselm Kiefer because he's German.
QUEST: But I love the way you combined the classic with the mob.
MACRON: This is the approach.
QUEST: Beautiful.
MACRON: And this one, it was asked by Francois Mitterrand for the bicentenary of the French Revolution. I love this one.
QUEST: If you could take one piece home with you when you're finished. You can take one, you know, imagine I can give you one piece in the whole
place. Which one would it be?
MACRON: You know what? I would just take my pen and start again.
QUEST: Thank you very much.
(END VIDEOTAPE)
QUEST: The more we talked about A.I. and the digital future, so it seems the backlash is more towards real things you can touch, feel and play with.
And I discovered this with Clare Duffy when we went to a famous Christmas market. Now, she was very keen to point out, forget digital, we were
talking handmade crafts.
(BEGIN VIDEOTAPE)
QUEST: We are here at the Holiday Market in Union Square. This is, I love this. I -- do you actually have to assemble this?
UNIDENTIFIED MALE: Yes.
QUEST: Is it really difficult?
UNIDENTIFIED MALE: These are a couple of hundred pieces.
QUEST: Are you good at this sort of thing?
CLARE DUFFY, CNN TECH REPORTER: I love a puzzle. What strikes me about this being here at the Holiday Market, looking at what people have made by hand,
is it sort of the antithesis to the A.I. sloppification that we've seen take over the internet this year of artificial content, artificial videos
and photos. It's nice to see.
QUEST: This is a very good example. Hello, sir.
UNIDENTIFIED MALE: Hello.
QUEST: Are these all handmade locally?
UNIDENTIFIED MALE: Not locally. We're out of Minnesota.
QUEST: Minnesota?
UNIDENTIFIED MALE: Yes.
QUEST: But it's all original stuff.
UNIDENTIFIED MALE: One hundred percent.
UNIDENTIFIED MALE: Absolutely.
QUEST: This is what you're talking about, isn't it?
DUFFY: The human creativity, exactly that.
QUEST: This is the exact opposite of the whole A.I. tech bubble stuff. As you've covered the year, what's been the feeling you've had?
DUFFY: I think we're transitioning from a place where A.I. felt like this novelty that people were curious about and they wanted to experiment with
ChatGPT. And we've now come to a place where people are starting to sort of grapple with what this is going to mean, both in good and bad ways, right?
We're thinking about the ways that A.I. content is taking over the internet, the way that these companies are spending hundreds of billions of
dollars to build out physical infrastructure, to power A.I. systems. We're sort of moving into this technology, becoming more of a real thing in our
lives now.
QUEST: To me, it seems there are two distinct aspects to it. On the first side, if you will, there's the companies, as you say, building out their
infrastructure and all of that. But the second side is us knowing how to use it properly.
DUFFY: Exactly.
QUEST: It's not just search, is it?
DUFFY: We've moved into this place where A.I. is not just a search engine. That is still how consumers are often using it. But people are finding all
of these various ways to use A.I., whether it's to develop these very personal relationships with chatbots. Companies are trying, not always
successfully, to figure out how to incorporate A.I. to make their operations more efficient and to drive value. But we're still at this point
where only about 5 percent of companies that have piloted A.I. systems are actually seeing a real return from it.
QUEST: I'm not going to ask you if it's a bubble, because I don't think anybody really knows, and I tend to Mohamed El-Erian's view. If it's a
bubble, it's a rational bubble. But is it out of control, or do you feel in 2025 it came? I don't know.
DUFFY: I think what's interesting, just within the last few weeks, we've seen a number of tech CEOs saying they even think there's a bit of over-
exuberance in the market when it comes to artificial intelligence. I mean, certainly I think there is a possibility that within the year or two we'll
see a correction, maybe not a bubble burst, but a sort of slowdown in the excitement.
What we're seeing is that this technology is starting to grow at a slower rate than we've seen over the last few years, and yet the investment
continues to be on this extreme scale.
QUEST: Do you actually spend much time on A.I.?
DUFFY: You know, in my personal life, not really.
[16:40:00]
QUEST: Yes.
DUFFY: I mean, I certainly am experimenting with it for work, but a big part of my concern when I think about using it myself is the environmental
impact of this technology. And I -- so every time I think about using ChatGPT, I then think about, is it worth it, or is there another way I
could find this information?
QUEST: You mean asking ChatGPT, how do I get to XYZ? Are the trains running on time? Blah, blah, blah. How do I make this?
DUFFY: Right. Is there a recipe that I could use? Or should I just pull out my recipe book instead, rather than using ChatGPT?
QUEST: Recipe book.
(END VIDEOTAPE)
QUEST: So much for A.I. The year was also defined by tariffs and the trade policy of the United States. Many people were hit, including small business
owners in New York, in a moment.
(COMMERCIAL BREAK)
QUEST: Welcome back to our Christmas special where you can never have enough Christmas sweaters. Tariffs, tariffs, and more tariffs. It was a
central theme of the year as President Trump launched his Liberation Day, and mayhem, confusion, and chaos seemed to reign around the world as U.S.
tariffs kept changing.
Let's take this sweater for example. It comes from Honduras where the tariff rate should be 10 percent. But you've also got new regulations about
the elimination of de minimis. It was all very complicated. What it tells us is this sweater from Honduras was more expensive, and as we discovered
when we went to visit local shops, so was pretty much everything else.
(BEGIN VIDEO CLIP)
QUEST: It is easy to think of tariffs on the big stuff, the automobiles, the dishwashers and the like. But the truth is, most of us will feel our
tariffs at places like this, the Heavenly Deli, where you buy your food and drink every single day.
Just look. Tariffs, tariffs, tariffs.
(END VIDEO CLIP)
QUEST: As the tariff rates kept changing, so it became extremely difficult for companies to keep up. And in some cases, the elimination of this so-
called de minimis rule, where anything under $800 was now subject to tariffs, made life even more difficult. Take, for example, the grocer's
Fortnum and Mason's, based in London. Fortnum's export a huge amount of tea to the United States. Or at least they did. I spoke to the chief executive.
(BEGIN VIDEOTAPE)
QUEST: Tea is now facing a double lump of trouble because of tariffs. And first of all, you have the ending of the de minimis rule. Now, the de
minimis rule means, of course, that basically any goods under the -- goods under $200 now attract a tariff, whereas before they did not.
[16:45:02]
So you have the de minimis rule which is there. But then if you add on to the de minimis rule, the U.S. authorities have now said that since tea
leaves come from India and China, they cannot be considered point of origin in the United Kingdom or in Britain, and therefore no more 10 percent
tariff. Instead, it's 50 percent from India or 30 percent from China or whatever else.
These two forceful actions, loss of de minimis, point of origin, the man who is going to explain to me is Chief Executive Tom Athron of Fortnum and
Mason. What does this mean for the price of dealing with selling your online tea or whatever?
TOM ATHRON, CEO, FORTNUM & MASON: Well, so thank you for having me on, Richard. Good to see you. And I have to say, you poured that beautifully.
No, I'll have it black, actually. What it means, I mean, what it fundamentally means is that American tea drinkers, and there are 159
million Americans who drink tea every day, are paying more for their tea.
(END VIDEOTAPE)
QUEST: The real problem is businesses work on certainty, and the way things kept changing made it very difficult for everybody to keep up. The largest
corporations have vast resources and were able to do so. It's the smaller businesses that really felt the brunt of it. Matt Egan joined me at that
Christmas market and showed me exactly how and why.
(BEGIN VIDEOTAPE)
QUEST: What sort of year was it in terms of, I mean we were just looking at some wonderful gloves there, leather, imported, Italy, tariffs.
MATT EGAN, CNN SENIOR REPORTER: Well, nothing was spared from tariffs this year, virtually nothing, right? Everything's now got these import taxes,
but it was -- I mean this had to be the most consequential year for trade and for tariffs, I mean certainly in my lifetime, and I don't even think we
totally understand what all the ramifications are just yet.
QUEST: But everybody had to deal with it.
EGAN: Yes.
QUEST: And as I'm just looking in this market, I mean whether it's an individual trader who bought cloth from where, where does your cloth come
from?
UNIDENTIFIED FEMALE: These details are screen printed in Turkey.
QUEST: In Turkey, good example of it. Somewhere else, right? Thank you.
UNIDENTIFIED FEMALE: Our blankets are made in the U.S., but a lot of the yarns are still imported.
QUEST: Imported, so tariffs, things went up, affordability, and it's interesting, that was everybody in some shape or form. Jewelry, tell me a
bit about jewelry this year.
EGAN: Well, a lot of the jewelry comes from India. India's got 50 percent tariffs. We're seeing some prices go up for jewelry, in part because of
tariffs, right?
QUEST: Even if it wasn't tariffs, just the economy and the concern and the uncertainty. Tell me about that with the Fed.
EGAN: Well, the Fed probably was leaning towards cutting interest rates, but then they had to kind of pause because there was just so much
uncertainty, right? The tariffs, the immigration, the spending cuts, everything was happening all at once, and so they ended up pausing on
interest rate cuts, much to the ire of the White House.
QUEST: Is there a consensus yet on whether the tariffs are inflationary one-shot or systemic and will build?
EGAN: I don't think there's consensus because the tariffs keep changing, right? The policies have adjusted again and again, they've intensified, and
they've gotten dialed back, and so it's hard to say that it's definitively a one-time hit, because it's hard to say it's completely done at this
point.
QUEST: What happens in '26?
EGAN: Well, hopefully it's less chaotic, right? I mean, hopefully tariff policy settles down and there's fewer dramatic announcements and everyone
can just sort of adjust to the new regime of where tariffs are.
But the problem is, Richard, and you know this, a lot of the companies, they have a lot of pre-tariff inventory, and they've been working that
down, and at some point, they're going to have to stock up again, and they're going to have to pay those tariffs.
QUEST: Where do you think we are in the inventory cycle?
EGAN: I think we're in sort of an unusual place, right, where a lot of companies --
QUEST: No, no, how much has still got to --
EGAN: I think it really varies based on the company. I mean, some of this has to do with how sophisticated the companies are. Some of these big
corporations, they can navigate the supply chain nightmares. They are ahead of the game. I think it's those smaller companies that are a little bit
worse off, and they're going to be in a tougher spot when it comes to inventory.
(END VIDEOTAPE)
QUEST: Gold, gold, gold, and more gold. Unfortunately, these are only pieces of gold chocolate. The real stuff is much more valuable. In fact,
gold was very much on everyone's mind, as the price soared with greater uncertainty. Gold got well and truly caught up in the whole tariff mess.
Anna Cooban visited one of Britain's gold refineries to see for herself all the glitters.
(BEGIN VIDEOTAPE)
ANNA COOBAN, CNN BUSINESS AND ECONOMIC REPORTER (voiceover): Hidden away, a warehouse on the edge of London. CNN has agreed not to reveal the exact
location for security reasons. That's because it's the U.K.'s largest gold refinery capitalizing on a new gold rush.
[16:50:10]
COOBAN: Don't be fooled. This is not a bucket of dirt. This is a bucket of pure gold worth about $2 million, and it could be turned into one of these
very heavy gold bars.
COOBAN (voiceover): In times of uncertainty gold is seen as a safe bet by investors. That's giving gold prices their biggest rally since 1979,
meaning that this jewelry is now worth more when thrown into the flames and melted down.
COOBAN: Here we go.
UNIDENTIFIED MALE: Right there.
COOBAN (voiceover): Baird & Co. buys all jewelry and turns it into pure gold that can be traded by investors.
At this stage the gold is still only considered around 50 percent pure.
COOBAN: Whoa.
COOBAN (voiceover): It is taken into the refinery for further purifying.
COOBAN: So what are these called?
LEE TOLLOW, SENIOR REFINERY TECHNICIAN, BAIRD & CO.: So these are called cornflakes.
COOBAN: Cornflakes?
TOLLOW: Yes.
COOBAN: But you can't eat them.
TOLLOW: No.
COOBAN (voiceover): And each of these flakes is around 90 percent pure and will be worth around $1,000, but they're still not ready to be sold.
TOLLOW: We do them as cornflakes, so they're all different shapes. So then there's spacing between, but when the acid drops, it can get to the whole
surface of the cornflake.
COOBAN (voiceover): The gold sand is taken back to the furnace and turned into these 99.99 percent pure gold grains. These are cast into molds,
rolled out, and weighed, ready to be stamped and sold. Each of these tiny bars can then be bought direct by investors or even available in retailer
Costco for around $7,000.
COOBAN: And there we go, a gold bar with a stamp of approval.
COOBAN (voiceover): Twelve months ago they were selling for less than $5,000. And it's returns like these that are making gold so popular with
investors from the trading floor to the supermarket aisle.
Anna Cooban, CNN, London.
(END VIDEOTAPE)
QUEST: I'll save some of this gold for a rainy day. It's all changed at the top of IKEA's parent company. But before the CEO leaves, he joined me to
assemble some furniture. How did we do?
(COMMERCIAL BREAK)
QUEST: Hopefully you got plenty of gifts this holiday time and hopefully there wasn't too much assembly required. This year I was privileged to be
joined by the outgoing CEO of IKEA's parent company, Jesper Brodin. I'd always wanted to assemble IKEA's furniture with the head of IKEA to see
just how difficult it is.
(BEGIN VIDEOTAPE)
[16:55:16]
QUEST: I am having palpitations over this.
JESPER BRODIN, CEO, INGKA HOLDING: This is going to be a chair in a few moments.
QUEST: Just -- just -- just -- just let's show it.
These are impossible to put together.
BRODIN: Absolutely incorrect and we shall prove it. Let's see.
QUEST: We have three implements.
BRODIN: Here we go. And you've got to be in charge of the assembly structure.
QUEST: Number one.
BRODIN: Yes. You know, can I tell you what's a good number one. Make sure we have all the screws. OK?
QUEST: This is going to get embarrassing even before we've started.
BRODIN: Have you opened these ones?
QUEST: It's open. Yes it is open.
BRODIN: Yes, I would like to see them here.
QUEST: Oh no, no. They'll fall on the floor.
BRODIN: OK, OK. Let's see, let's see.
QUEST: No, I mustn't argue. I must not argue with the CEO of IKEA who does actually know what he is doing.
BRODIN: We will see that in a moment.
QUEST: All right.
BRODIN: All right, time has come to do the last moment here and we are so far so good and here we are.
QUEST: When you design these things, it is really clever how you actually design it, so --
BRODIN: You know, it is a very interesting design formula. It is called a democratic design. It is five things -- it is form, function quality,
sustainability, and then the most tricky one of all, low price.
So you need to do all of this and still make sure that it is -- and that is why engineering is so important.
QUEST: How often does your sustainability come into conflict with low price?
BRODIN: Today, honestly.
QUEST: Yes.
BRODIN: Sustainability is one of the biggest drivers for us to get cost and price down and when you look at it, it is not that difficult, right? If you
manage to make the flatpack flatter, you will save cost. If you find a way to save material, it will save cost. If you're building circular flows, you
save cost.
If you have renewable energy in your production, in your transport, you will save cost. So again, for us today, actually sustainability is one of
the big business driver. Here we are. Beautiful, democratic design with a flexibility in it. Now you have to try it and see if you like it.
QUEST: All right. It is classic, isn't it?
BRODIN: It is. It actually has the flexibility as well. So it is built for comfort. It should be safe.
QUEST: What could possibly go wrong?
BRODIN: Nothing. We made it. So thank you so much.
QUEST: Thank you very much.
(END VIDEOTAPE)
QUEST: Well, it wouldn't be Christmas without Rudolph. What a year it has been. And we look forward to bringing more to you next year. And thank you
for spending time with us. As always, whatever you're up to in the year ahead, I hope it's profitable.
(COMMERCIAL BREAK)
END
