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CONNECT THE WORLD

Iceland Prime Minister Resigns; Donald Trump Under Pressure As Wisconsin Vote Looms; China Silent on Panama Papers Revelations; Israel Suspends Concrete Shipments to Gaza. Aired 11a-12p ET

Aired April 5, 2016 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[11:00:18] BECKY ANDERSON, HOST: Political fallout. Iceland's prime minister considers dissolving parliament as outrage over leaked documents

about his affairs brings thousands to the streets. This hour, more on how the so-called Panama Papers continues to send shock waves around the world.

Also ahead this hour Israel suspends cement shipments into Gaza. We're live for you in Jerusalem.

And voting under way in the potentially pivotal Wisconsin primaries. We're going to have a look at that and we'll look at how often the U.S.

presidential candidates accuse each other of lying. You might be surprised.

ANNOUNCER: Live from CNN Abu Dhabi, this is Connect the World with Becky Anderson.

ANDERSON: A very good evening. Just after 7:00 here in the UAE. For the first time a world leader is commenting on the so-called Panama Papers

controversy. Sunday's massive leak of confidential documents from a law firm in Panama that was allegedly used by some leaders to hide wealth from

tax collectors back home.

Well, British Prime Minister David Cameron dragged into the controversy because his late father Ian Cameron set up an offshore company for

investors to avoid paying taxes in the UK.

Here is what Mr. Cameron had to say.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: The two things I'm responsible for are my own financial affairs and for the tax system of the United Kingdom.

In terms of my own financial affairs I own no shares. I have a salary as prime minister and I have some savings, which I get some interest from.

And I have a house which we used to live in, which we now let out while we live on Downing Street. And that's all I have. I have no shares, no off

shore trusts, no off shore funds, nothing like that. And so that I think is a very clear description.

(END VIDEO CLIP)

ANDESRON: Meanwhile the document breach could be catching up to Iceland's Prime Minister David Gunnlaugsson who now says that he will dissolve

parliament and call for fresh elections as soon as possible if his coalition partners don't back him.

Well, he's been under intense pressure to resign since the leaks revealed his alleged ties to an offshore company withholdings in Iceland's collapsed

banks.

Well, Iceland's president is responding to the prime minister's request to dissolve parliament. CNN's Frederick Pleitgen joining me from London with

the details.

Fred, why is Iceland's prime minister implicated in all of this? Can you break down the details for us.

FREDERIK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Well, exactly, Becky, because he had a share in a shell company together with his wife. He owned

part of it. His wife owned part of it with a lot of assets that he claims were mostly his wife's assets, but it was a certain amount of wealth and

also apparently shares in some of Iceland's banks that collapsed in 2008.

Now, he says that legally he's done nothing wrong. He said that he sold all the shares that he had in the shell company, which is called Wintress

(ph) to his wife before it was legally mandated for him to inform parliament that he had had these shares in the first place, that is the

last day of 2009, and he said he sold all his shares to his wife. That company is now completely his wife's and that's where these assets are.

Now, of course there are many people in Iceland who are saying, listen, maybe

none of this is illegal but a lot people think it's unethical. And that's why you have those very large demonstrations there in Iceland, also, of

course, Becky, because you had that banking crisis there in 2008 and many people in Iceland

felt that the country was now starting to regain the reputation it had before the banking crisis. And of course the last thing they want is for

their prime minister to be in some way, shape or form tainted, especially since you're absolutely right, he also apparently had some shares of banks that

collapsed in 2008.

And of course Icelandic politics is still very much dealing with that collapse and it is questionable to some whether or not the prime minister

does have any conflict of interest if his wife is holding shares in those banks.

ANDERSON: Yeah. Listen, that's the details of what's going on so far as the Icelandic prime minister is concerned. I want the bigger picture at

this point. What's the Panamanian law firm saying about all of this?

PLEITGEN: Well, that's a very good question, Becky. And certainly, the Panamanian law firm is saying, listen, they don't think they have done

anything illegal. In fact, they were saying that they believe they were the victims in all of this. They say that this breach of documents is

something that was obtained illegally. They say all that their business dealings were legal.

The co-founder of the company went out and gave an interview. Here is what he had to say.

(BEGIN VIDEO CLIP)

[11:05:02] RAMON FONSECA, DIRECTOR MOSSACK FONSECA LAW FIRM (through translator): We are a firm in existence of nearly 30 years. We have

formed more than 250,000 anonymous corporations throughout our history and we take care only of the legal part. We do not participate in the

activities of the company, nor do we have any responsibility over what the company does. We are not responsible for the activities of the 240,000

companies we have established throughout our history.

(END VIDEO CLIP)

PLEITGEN: So as you can see, them they are saying from their vantage point they believe they

have done everything legally. They say they have no responsibility for what the shell companies or the companies that they set up actually then do

with their legal status. However, there are governments in various countries, including the United States who said, of course, they

are going to be looking at this data leak and they want to see whether or not there were dealings in there that might have breached any sort of laws

that would be relevant.

And of course that is something that could spell big trouble not just for various world leaders, but of course for a lot of very prominent people

around the globe as well, Becky.

ANDERSON: All right. Fred Pleitgen on the story for you out of London. And Iceland isn't the only country getting caught up in this controversy.

So, it seems at least, is Syria. With allegations that the country has been fueling its civil war by dodging sanctions using offshore companies.

You're going to get the latest from a journalist who has been digging into that story. That is just 10 minutes or so from now.

Showdown in Wisconsin. The U.S. state casts votes in the state's presidential primaries today. People there making their choice on who they

want to be their party's nominee.

And the front-runners in the race, Donald Trump and Hillary Clinton face an uphill battle in the so-called Badger State as the fallout from Donald

Trump's controversial comments on abortion continues.

Polls show him trailing Ted Cruz by 10 points with John Kasich not far behind. On the Democrat's side, Bernie Sanders and Hillary Clinton polling

neck and neck.

CNN's Jason Carroll joining me live from Wisconsin with more. And Trump, Jason, is arguably coming off his worst week in the race. There's

controversial comments on abortion, his campaign manager charged with misdemeanor battery. Is his week going to get worse do you think at this

point?

JASON CARROLL, CNN CORRESPONDENT: Well, look, he certainly has an uphill battle here in this state. But he's making a prediction about what will

end up happening here tonight. Here in the state of Wisconsin, Becky, they are expecting record turnout, expecting 40 percent of all registered voters

to end up in polling places like this one. If that happens, that will equal some 1.75 million people showing up.

Let me take you and give you a look here at this vote, at this particular polling place. You can you see some folks coming in here just starting to

register. They are going to end up casting their votes here on the left side of this gymnasium here in Brookfield.

When it comes down to Wisconsin, Becky, one thing that you have to keep in mind in the state, and I'm quite sure some of your viewers aren't aware of

this, but when it comes to the Republicans it basically comes down to something called the WOW counties, Waukesha, Osaki

and Washington counties. These are basically the three counties surrounding Milwaukee. They tend to go very Republican. This is where

we've seen the huge Republican push to get out the vote. It seems to be working.

Donald Trump feels as though a large voter turnout will end up working in his favor, not in

Cruz's favor. He's also making a prediction here in the state telling people at a rally over the weekend, he says there's going to be a surprise.

Despite what the polls show, the polls as you know showing Ted Cruz up by some 10 points. He says he's going to pull out a win here just like he did

in New Hampshire, just like he did in South Carolina -- Becky.

ANDERSON: Interesting.

Donald Trump touting his strength, sorry, as a reason women are supporting his candidacy, apparently.

Listen, you've been talking about these numbers. Ted Cruz going to have to watch his back to a certain extent in all of this. Do you get the sense

from Cruz's camp that he thinks victory is a done deal?

CARROLL: It's a photo bomb?

Let me get with you in one second. Why don't you talk to my producer.

UNIDENTIFIED MALE: I'm going to vote and get the hell out of here.

CARROLL: Well, you're going to vote and then -- who did you end up voting for.

UNIDENITIFIED MALE: I don't know yet.

CARROLL: You don't know yet?

UNIDENTIFIED MALE: If you had Fox there, I'd probably tell you.

CARROLL: OK, well maybe we can work on that later.

Why don't you talk to my producer over there and we'll get with you after.

I'm sorry, Becky, what was your question?

ANDERSON: Excellent stuff.

No, it was a question about whether Ted Cruz, who is out front in all of this, whether he thinks

victory is a done deal. It's never over until it's over of course. And Trump is a big fighter and certainly will be in this state, won't he?

CARROLL: Well, look, when it comes to Ted Cruz, Ted Cruz has been saying a number of things, Donald Trump have been saying a number of things as you

know, about this particular race.

One thing that they do share in common that I can tell you and that has to do with John Kasich, both of them are saying that this should be a two-man

race. That John Kasich has no business being in this race. It's time for him to get out of the race.

And when it comes to large voter turnout, a couple of things. Donald Trump says, first, a large

voter turnout is going to favor him. It's not going to favor, he thinks, Ted Cruz. He does feel as though when it comes between the matchup between

himself and Ted Cruz that Kasich is the one taking votes away from him, votes he believes will go to him and not go to Ted Cruz.

ANDERSON: Good stuff. And excellent crowd control, sir. Thank you. Jason Carroll on the campaign trail.

Let's get you the latest on some of the other stories on our radar right now. Syria says it has retaken the strategically important town of

Kariatain (ph) from ISIS. The army says it can secure oil and gas pipeline there and block critical ISIS supply routes.

It is southwest of the ancient city of Palmyra,which Syrian forces, as you may remember, recaptured last month.

Well, there are reports that Azerbaijan and pro-Armenian separatists from the region of Nagorno-Karabakh have agreed on a cease-fire. If confirmed,

it could end hostilities that have claimed the lives of dozens of people on both sides. The conflict flared up again over the weekend.

And the Afghan interior ministry said six people have been killed in a suicide attack in the eastern part of the country. It also says 22 others

were injured when the bomber detonated the explosives near a police compound.

Some of the stories on our radar this hour.

Well, Israel has suspended private imports of cement into Gaza,, accusing Hamas of siphoning off some of the supplies.

Now, the cement is intended for badly needed construction projects after a 2014 war with Israel left many homes and other buildings in ruins.

Well, Hamas officials denies Israel's allegations telling the Agence France Presse press that all

cement distribution sites are monitored by cameras.

He's also warning of dire consequences for the economy unless the ban is lifted.

Oren Liebermann following the story from Jerusalem for you.

This isn't the first time we've had a flareup over cement imports into Gaza. But Oren, Israel says that Hamas is stealing cement. For what

purpose?

OREN LIEBERMANN, CNN INTERNATIONAL CORRESPONDENT: Well, there the Israeli fear and Hamas boast as we've seen in recent weeks and months is that this

cement is being diverted or being used for rebuilding tunnels. In the 2014 Gaza war, Israel claims to have destroyed some 30 or so

tunnels leading from Gaza into Israel. And as we've seen before, these are well constructed tunnels using the all important cement.

Israel now fears that Hamas is once again diverting cement from the people who need it, from private citizens who need to reconstruct or rebuild homes

straight toward building tunnels again.

We've seen Hamas say that these tunnels are for defensive purposes. Israel would beg to differ as they have seen these tunnels used for attack

purposes in the last Gaza war. And following that war, that was the major fear that tunnels would be reconstructed.

Of course cement is the all important material not just for tunnel construction, but also for

the rebuilding of Gaza. The International Monetary Fund says some 90,000 homes that were damaged but not destroyed have been rebuilt since the Gaza

Zar, but 16,000 homes that were destroyed, reconstruction on those has barely just begun. It is because Israel believes that that cement is being

diverted, that they have suspended for now the movement of the cement into Gaza.

ANDERSON: All right, the UN, I know, is intervening trying to resolve the situation. Briefly what's the latest?

LIEBERMANN: The UN is a critical part of the GRM, the Gaza Reconstruction Mechanism. And they have put out a statement saying they are working with

Israelis and the Palestinians to resolve this as quickly as possible.

Let me read you a part of that statement. It says, "those who seek to gain through deviation of materials are stealing from their own people and

adding to the suffering of Palestinians in Gaza. The reconstruction of Gaza remains critical to ensuring its stability and I urge a rapid

resolution of this matter."

Becky, the UN is very aware that their own report says Gaza could become unlivable by 2020 without cement, without that critical rebuilding

material. That may happen even faster.

ANDERSON: Oren Liebermann on the story out of Jerusalem for you this evening.

Still to come tonight -- thank you, Oren -- Brazil struggling with a number of crises: political upheaval, economic turmoil, and the Zika virus. All

that, plus of course the summer Olympic Games in four just months. We are going to check in on how the country is coping

later on this hour.

And migrants seeking a better life in Northern Europe hit a major roadblock in Greece.

(COMMERCIAL BREAK)

[11:17:16] ANDERSON: This is CNN. You're watching Connect the World with me Becky Anderson. Welcome back. 17 minutes past 7:00 here in the UAE.

Now, France says it hasn't done enough to help Syrian refugees and is vowing to do more in light of a deal between the European Union and Turkey.

A report from Reuters sites the French foreign minister who says that the number of Syrian refugees welcomed by France is, quote, still extremely

inefficient -- sorry, let me say that again -- still extremely inefficient. And his nation needs to redouble its efforts.

Well, under the terms of the deal Turkey is taking back migrants and refugees who cross the Aegean to enter Greece illegally. Erin McLaughlin

reports.

(BEGIN VIDEOTAPE)

ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT (voice-over): Under the cover of darkness, the buses arrive full of disappointment and disbelief.

These are the first migrants to be deported from Greece back to Turkey, part of a deal meant to discourage migrants from making the deadly sea

crossing that's wreaked havoc on Europe's borders.

Authorities are taking no chances. There's a heavy police presence. One border officer for every migrant. Some migrants even handcuffed.

For now, they are deporting men. Not a woman or child to be found. From places from Pakistan and Afghanistan. Migrants looking for a better life.

A sad end to a journey once fueled by hope.

They were bused in from the detention center. Here, morale is at an all- time low. After all, these people face a similar fate. Migrants aren't allowed to leave. And journalists aren't allowed in. We talked to them

through a wire fence.

(on camera): So that's your number?

UNIDENTIFIED MIGRANT: Yes.

MCLAUGHLIN (voice-over): This Afghan migrant sold all of his possessions in Kabul towel fund his trip from Turkey.

UNIDENTIFIED MALE: I think it's better to go back to Turkey or Afghanistan.

MCLAUGHLIN: These men say they'll get to Europe no matter what the price.

(on camera): Will you try to come back to Europe if you get sent to Turkey?

UNIDENTIFIED MALE: Yes, we'll come back to Europe if they deport us.

[08:20:09] MCLAUGHLIN (voice-over): Authorities intervene to stop us from talking further. We are asked to leave.

(SHOUTING)

MCLAUGHLIN: That determination we saw at the detention center still evident in the waters off Greece.

(on camera): NATO boats patrol these waters. Those efforts are not enough. Dotting the coastline you still see life jackets from migrants who just

arrived.

(voice-over): On this day, more life jackets than the number of migrants deported. That's a problem for E.U. and Turkish officials. Their deal

depends on stopping that flow.

As the first boat loads leave for Turkey, the Greek Coast Guard arrives. New migrants on board, ready to take their place.

(END VIDEOTAPE)

ANDERSON: Erin McLaughlin reporting for you.

I want to get you back to our top story this hour and that is the massive data leak known as the Panama Papers.

We are now seeing reports that the documents are exposing corruption at the highest levels of the Syrian regime that people with business and family

links to President Bashar al-Assad are making use of complex offshore schemes hiding vast wealth and perhaps even sneaking around sanctions.

A lot of work on this is being done by the International Consortium of Investigative Journalists. CNN can't independently confirm this reporting.

Well, let's speak to Juliet Garside now. She's the telecoms correspondent for The Guardian Newspaper and has been writing about Mr. Assad's family.

She's with us now via Skype from London.

And Juliet, these are some very serious claims. These reports suggest a kind of secret cabal defying laws, flouting taxes. So, tell us what are

you seeing to back up those claims?

JULIET GARSIDE, THE GUARDIAN: Well, I don't think we're not seeing a secret cabal. But what we are seeing is offshore pandemonium, a lax

regime, particularly in British jurisdictions such as British Virgin Islands, with minimal supervision, with minimal

accountability where anything goes.

We found 23 companies and individuals sanctioned by the United States and Europe who

were clients of Mossack Fonseca. And we know that 17 of those individuals were clients of the firm while they were on sanction's lists. And they

include Bashar al-Assad's cousin Rami McClouffe (ph), his brother, the former Syrian army general and head of intelligence in Damascus Hafez

McClouffe (ph), both of them were also customers of HSBC Suisse Bank right until Switzerland imposed sanctions in late 2011, several weeks after the

beginning of the Syrian civil war in March 2011.

ANDRESON: These allegations, as you point out, going to the very heart of sanction busting, sanctions that were put in place to help stop a war. So

is the point here you think that essentially offshore companies have helped Syria's civil war grind on now for five years?

Is that the implication of all of this.

GARSIDE: Do you want sanctions to be effective, you need people to impose them. in the BVI, what we've seen is that it took Mossack Fonseca a year

to realize that it was servicing a company that was supplying fuel to the Syrian government, Syrian air force, which has obviously played a key role

-- this is aviation fuel in the Syrian air force has obviously played a key role in the humanitarian crisis.

This company, Pangates Interantional Corporation, was sanctioned, in July 2014 by the U.S. And while Mossack Fonseca claims not to knowingly act for

any companies that have been involved with the Syrian civil war, it took it until August 2015, that's nearly one year afterwards, to realize it was

acting for this company, keeping it in business effectively.

ANDERSON: The law firm in question, Mossack Fonseca, based in Panama, of course, they don't have to follow American sanctions, and there has been a

lot of reports in the British media about the use of tax havens in general, lots of talk about whether they are more morally illegal, as it were,

rather than just strictly illegal -- morally bereft, perhaps.

So, what I'm moving towards is long-term is there any prospect of these kind of loopholes being closed?

GARSIDE: I think there are clear things that the UK can do right now. They can make sure that the owners of companies are declared to governments

and tax havens, so they're not kept and buried in a register far, far away from the tax haven itself, they're kept at government level and theyr'e

made public just as they are in the UK. In the UK we know who owns our companies.

And as far as sanctions goes, yes, you're right. U.S. sanctions do not apply in the BVI. European sanctions normally do, they're normally

extended by the UK to its overseas territories. And there's actually no reason why this shouldn't be policed much more closely by the BVI.

ANDERSON: Interesting, and possibly more to come. Thank you. Your analysis on what is

known as the Panama Papers leak.

In China, leaders are taking it one step further. You can't even read this CNNMoney.comarticle on the Panama Papers there, authorities blocking it, as

well as our broadcast, but you can learn more about the effects in China and across the world by heading to CNNMoney.com.

Well, we move on from this story. I want to highlight some 8 percent of global household wealth is held in offshore accounts, an immense $7.6

trillion, that's according to calculations by the Economist Gabriel Zucman.

Now, it's the lowest estimate of the tax were paid on just the income that generates, that would be enough to wipe out global hunger six times over,

according to UN figures from 2008. And that is how tax havens in Europe and elsewhere are connected to some of the world's poorest people. Food

for thought.

The latest world news headlines just ahead plus the Summer Olympics get under way in Brazil in four month's time. But is the nation ready? We

take a look at the crises facing Brazil coming up. This is a very short break. Don't go away.

(COMMERCIAL BREAK)

(HEADLINES)

ANDERSON: No new migrants left Europe on Tuesday for Turkey. Under the terms of the deal, Turkey taking back many migrants and refugees who cross

the Aegean to enter Greece illegally.

Now, the first batch left on Monday. Erin McLauglin joins me now from the Greek Island of Lesbos with more.

What are conditions like at the detention center where so many are being held? And why is it nobody else has left?

[11:29:44] MCLAUGHLIN: Well, Beck y, here outside the Moria (ph) detention center the

situation is tense. This is where the migrants are taken once they arrive on the Island of Lesbos. They are cannot leave the detention center,

journalists are not allowed inside.

And following yesterday's deportations as the migrants inside the center come to realize that there is a real possibility, in fact, a likelihood

that they will suffer a similar fate, we've seen them protesting. A group of migrants have approached the main entrance of the detention center,

holding signs, pleading for their freedom, pleading to the press for help, saying that they would rather die than go back to Turkey, then suffer the

fate of their fellow migrants they saw deported yesterday.

Now, in terms of the conditions inside the detention center, again it's dire. Migrants telling me they feel as though they are caged animals.

We spoke to one aid worker from MSF who was inside the center earlier today. He said that they have actually run out of food. There's one

organization inside that still has rice and is feeding the rice to the migrants. It's over capacity. It's over crowded. There's a lack of

sanitation. People are sleeping on the ground.

Take a listen to what he had to say.

(BEGIN VIDEO CLIP)

JONAS HAGERSEN, SPOKESMAN, DOCTORS WITHOUT BORDERS: I think there's a tense situation in there. We are concerned mostly for the vulnerable

groups: so elderly, sick, children, pregnant women, they should not be kept in a detention center like this.

(END VIDEO CLIP)

MCLAUGHLIN: Now, he also told me that many of the migrants are complaining about a lack of information, a lack of information about the asylum seeking

process. He said that they have received numbers, but not more information than that.

And we're also hearing from UNHCR today telling me that yesterday with regards to the deportations on the Greek Island of Helios, some 13

individuals were deported who had wanted and expressed a wish for asylum in Greece.

And Greek officials yesterday had assured everyone that the individuals deported yesterday did not have access to the asylum seeking process.

UNHCR saying now that they are trying to work in Turkey to reach out to those individuals and help them, they are also trying to help Greek

officials make sure that proper procedures are in place inside these detention centers so that that doesn't happen again.

Now, as you said, Becky, no deportations today. We're also hearing media reports that there are no deportations expected tomorrow. Why that is,

unclear at this time.

ANDERSON: Erin McLaughlin on Lesbos for you in Greece. Thank you.

To the race for the White House, getting you bang up to date. And crucial primary today in the U.S. state of Wisconsin. The polls are open and high

turnout is expected.

Now, Republican primary voters could deal Donald Trump a setback in his effort to clinch enough delegates to secure his party's nomination.

While we've been reporting on that, some moments ago on the Democratic side -- and that's what I want to get to now, Bernie Sanders hoping to continue

chipping away at Hillary Clinton's delegate lead. His campaign manager tells CNN it's -- and I quote, very, very unlikely that either

candidate will win enough pledged delegates to claim the nomination before this summer's convention.

Well, Clinton campaign strongly disagrees. It calls her lead nearly insurmountable and says the only way for Sanders to win would be to, quote,

reverse the will of the voters.

Well, let's go live now to Wisconsin. Chris Frates is in Green Bay. What likelihood, then that he is able to do that, reverse the will of the

voters, as Clinton suggests?

CHRIS FRATES, CNN CORRESPONDENT: Hey, Becky. Well, I can tell you that there's a lot of debate over that.

But first Bernie Sanders needs to win here in Wisconsin. In fact, both Sanders and Clinton have made the argument that if turnout is high today,

they feel good about their chances. So, I have good news for both campaigns, at least here in the polling place where we are, turnout is in

fact high. We've seen about 300 people come through the doors since they opened at 7:00 a.m. at this location. It usually gets about 1,600 people.

So, a large turn out here.

And I've talked to a number of Democrats, most of them voting for Bernie Sanders. And also I talked to a never Trump Republican who said he also

voted for Bernie Sander just because he doesn't want to see Donald Trump take that nomination. So, that's good news for Bernie Sanders as he tries

to really run up the score here in Wisconsin. He needs to take as many of those 86 delegates as possible.

Now, Hillary Clinton has really tried to manage her expectations here in Wisconsin, her campaign making the point that she lost this state to then

Senator Barack Obama in 2008 by double digits and making the point that this is a majority white state that does better for Bernie Sanders than it

does for Hillary Clinton.

But I think if you look at Hillary Clinton, she's taking the campaign to New York. She didn't come here for a last minute push yesterday ahead of

this vote, she stayed in New York.

And there's a reason for that, there's 250 delegates on the line April 19 in New York. Hillary Clinton leading Bernie Sanders there by double

digits. She wants to solidify that lead. And Bernie Sanders really wants to try to challenge it. He wants to win here today and then leapfrog to

New York in two weeks and upset Hillary Clinton.

In fact, he is -- both Clinton and Sanders have agreed to a big event on the primary calendar before this April 19 primary, April 14, five days

before that crucial New York primary right here on CNN. They are going to go mano a mano. They're going to debate in Booklyn, that's the first time,

Becky, we've seen Sanders and Clinton go head-to-head in over a month -- Becky.

ANDERSON: Amazing.

All right. It seems a lot longer than that. Thank you.

Her resume, then, is impressive, her experience virtually unrivaled in this presidential race, but Hillary Clinton can't seem to shake criticism of

everything from her pant suits, or her trouser suits to her personality, to even the sound of her voice.

John Mann looks at what some call her likability problem.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: She doesn't seem very warm. She doesn't seem very genuine.

UNIDENTIFIED FEMALE: She has a lot of baggage. She doesn't appear honest. People haven't liked her for years.

UNIDENTIFIED FEMALE: I hate to say it, but it's just her personality, which is just not a fair thing to say, because she's a woman, and she comes off

as kind of serious. You hear a lot on the news about her yelling.

JONATHAN MANN, CNN HOST, POLITICAL MANN (voice-over): They are impressions that barely scratch the surface of Hillary Clinton's decades in public

life. But they're deep-seated, and for Clinton, they are a problem.

Hillary Clinton has been many things. A middle class girl from the north side of Chicago, a Yale scholar, the first lady of Arkansas and then the

first lady of the United States. After a tumultuous eight years in the White House.

(SINGING)

MANN: She'd go on to serve as Senator from New York, the only first lady to ever hold the post.

(CHEERING)

MANN: And then in 2007, she became a candidate for president herself.

She has worn many hats, and famously many pantsuits, and she is judged for her clothes, her hair, her marriage, her integrity, and something much more

basic, her likability.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: You're likable enough, Hillary.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Thank you.

MANN: A CBS/"New York Times" poll found that 52 percent of voters have an unfavorable view of her. Donald Trump, perhaps the most polarizing

politician in America today, is disliked by only slightly more voters, 57 percent.

There have been questions, scandals, investigations about a land development deal from her days in Arkansas known as Whitewater. About the

deadly attack on a U.S. diplomatic outpost in Benghazi, Libya, when secretary of state. About her decision to handle her government

communications on a private e-mail server. What do all the episodes have in common? No wrongdoing was ever proven, but she was never able to wash away

the stain of scandal.

MARGARET HOOVER, CNN POLITICAL COMMENTATOR: The problem with Hillary Clinton isn't the substance. The problem is the style. The problem is, is

she the person you want to have a beer with?

MANN: Then there was Monica Lewinsky, her husband's relationship with a White House intern that nearly brought down his presidency.

UNIDENTIFIED MALE: It's important to remember that Bill Clinton is still one of the most popular living American politicians. But the down side is

those scandals. And to the extent that mentions of Monica Lewinsky dredge up memories people would not like to relive.

MANN: There may be something else. Maybe many Americans are just uncomfortable with a woman as successful and fiercely ambitious as Hillary

Clinton.

Years ago, she identified the problem.

CLINTON: I suppose I could have stayed home and baked cookies.

HOOVER: She has already competed in a presidential primary eight years ago. She's been the secretary of state of the United States. By the way, the

third female secretary of state of the United States. At this point, I don't think it's sexism.

UNIDENTIFIED FEMALE: Hillary!

MANN: Supporters insist Clinton is still judged unfairly.

DONNA BRAZILE, CNN POLITICAL COMMENTATOR: This will be a big test for the country and whether or not we're able to look past all of these cultural,

social and media biases and look at the person, the individual, the leadership traits and what they bring to the conversation. That's the big

test she'll have to pass.

MANN: Compare her to some of the most important men in her life today. Clinton is not credited with Bernie Sanders' honesty, Donald Trump's

candor, or her husband's magnetism. But she is doggedly working towards the Democratic presidential nomination, and as she approaches the general

election, she will at some point have to convince Americans that she can be the first female president of the United States, whether they like her or

not.

Jonathan Mann, CNN.

(END VIDEOTAPE)

ANDERSON: Well, Brazil has long been considered a country on the rise, but it now faces a number of crises from its economy to its politics and its

public health. All that with Rio welcoming fans to the Summer Olympics in just four months.

My colleague Paula Newton looks at Brazil's fragile state of affairs.

(BEGIN VIDEOTAPE)

(MUSIC PLAYING)

[11:40:22] PAULA NEWTON, CNN CORRESPONDENT (voice-over): Take a stroll on the beach and at first it seems nothing's changed. Brazil's cliches endure.

Its gorgeous beaches, its fun-loving attitude, its image as the country of the future.

NEWTON: But you take a closer look and you wonder, what happened?

Well, it's a political and economic drama so devastating, it's shattering many of those cliches.

NEWTON (voice-over): First up, the economy, slashed by Brazil's worst recession in a generation, one that could turn in an all-out depression by

year's end. Unemployment is close to 10 percent. Thousands of businesses have closed. Nasiza Hosha (ph) has been running this Rio restaurant and bar

for more than a half-century.

NEWTON (voice-over): He tells me, "Of course, we are living through a crisis and the scope of it is the worst I have ever seen." Could things get

worse?

They just did, with a crushing political drama. Brazilians are outraged by a scandal so sordid it already implicates more than half the country's

national politicians in a kickback scheme, allegedly orchestrated by the state-run national energy conglomerate, Petrobras -- and that's not all.

Brazilian President Dilma Rousseff is cornered by a budget scandal that could see her impeached within weeks; her predecessor, Luiz Inacio Lula da

Silva, once revered as a savior of modern Brazil, also under investigation for kickbacks.

Brazilians are devouring news from Watergate-style wiretaps in every corner and crevice of their everyday lives.

UNIDENTIFIED MALE: It's sad but it's -- they're thieves.

NEWTON: How can you guys cope?

How will you cope?

UNIDENTIFIED MALE: Embarrassing.

NEWTON: Embarrassing?

The whole thing?

UNIDENTIFIED MALE: Embarrassing.

NEWTON (voice-over): And to crack confidence still further, Brazil is coping with Zika, a mysterious virus stalking the country, one that may

cause a devastating neurological disorder in hundreds of newborns.

In Brazil's already challenging favelas, there is fear.

"We're worried about the situation," she tells me, "and we're trying to cope with it."

NEWTON: So we have a country shattered by economic despair, demoralized by a political crisis and plagued by Zika. And through all this, in just a few

short months, Brazil welcomes the world for the Olympics.

NEWTON (voice-over): So we went to the Museum of Tomorrow, Olympic legacy project -- incidentally, its construction also implicated in the kickback

scheme -- to find out how Brazilians plan to deal with it all.

NEWTON: So you're going to put it on pause?

UNIDENTIFIED FEMALE: Yes. Pause, no, Olympic Games. OK.

NEWTON: Start the circus again?

UNIDENTIFIED FEMALE: Yes. No, it's a mess.

NEWTON (voice-over): A mess and a reminder that even with the Olympics coming, Brazilians are struggling to hold on to those classic cliches that

once made them so proud.

Paula Newton, CNN, Rio.

(END VIDEOTAPE)

ANDERSON: And updating you on our top story tonight. And breaking news, the Icelandic Prime Minister Sigmundur David Gunnlaugsson has resigned

according to one of the papers there. The prime minister has said in a live broadcast apparently.

Let me get you some more on this. David Gunnlaugsson, of course, had said he would dissolve

parliament and call for fresh elections as soon as possible if his coalition partners didn't back him. He's been under intense pressure to

resign since the leaks revealed his alleged ties -- alleged ties, of course, to an offshore company with holdings in Iceland's collapsed banks,

these the Panama Papers as they have come to be called.

So just news in as we are broadcasting here. He has resigned amid this Panama Paper scandal. We're going to get you my reporter on this story,

Frederik Pleitgen, who is London for you. Fred, breaking news this hour.

PLEITGEN: Yeah, breaking news. And it really seems like this standoff that was really going on in Reykjavik throughout the better part of the day

has now, wouldn't say been decided, but certainly all parties have come together and seemed to have worked something out at least.

There was a statement hat we have gotten from the deputy head of the Progressive Party, which is the party that the prime minister is also a

part of saying that the prime minister will resign, but that he will stay in place as the leader of the Progressive Party.

So at least the first thing that these protesters were calling for many people in the opposition were calling for as well seems to be happening,

and that is that the prime minister is resigning.

But really, throughout the better part of the day, you could see a lot of political gambling going

on, you could see a lot of political negotiations going on between the prime minister and the president. We're at the beginning, a lot of people

in the opposition were saying that the prime minister should resign. The prime minister for his part said not so fast. If I'm going to

resign, everybody resigns. And he said that he wanted snap elections. He wanted to dissolve parliament.

Snap elections would have had to be held in around 45 days. So, it seems as though all of this

at this point in time will not happen. Still waiting to see what the political way forward will be for Iceland. But at least the main demand of

the people who were protesting and who have scheduled to protest tonight again seems to be met. The prime minister from the information that we're

getting is, indeed, resigning, Becky.

ANDERSON: Yeah. And remind us, just briefly, what they were protesting. How has he been caught up in this Panama Papers scandal?

PLEITGEN: Well, you know, the interesting thing is that from the very beginning Gunnlaugsson has been saying that he believes that he has been

name unfairly. He says that at least legally he has done nothing wrong.

All of this is about a company, an investment company, a shell company, that he and his wife

owned, which apparently has a lot of assets especially of his wife's, in that company. But also seems to have shares of several Icelandic banks

that went bust in 2008.

Of course, you had the big banking crisis in Iceland at that point in time as part of the wider global financial crisis that was going on.

Now, he says that he sold his share in that company, which is called Wintress (ph) to his wife

before any of that would have become relevant to his career as a parliamentarian and before he would have had to disclose any of that to the

parliament and to any sort of oversight committee for politicians in Iceland. And so he again says that he did nothing wrong legally.

However, there are of course many in Iceland who say, yes, maybe legally this was all sound, but ethically it's not something that they want their

prime minister to be part of, especially considering all the problems that Iceland had after the 2008 financial crisis where, of course, big economic

downturn, a lot of jobs lost, a lot of people facing economic hardship, and really the country coming back, one of its main features then being a new

found transparency.

So, certainly a lot of people very angry at the fact that the prime minister's name was even

mentioned as part of what people are calling the Panama Papers investigation, Becky.

ANDERSON: Iceland's prime minister resigns. Breaking news this hour, stays on as the leader of his party but caught up in what has become to be

known as Panama Papers scandal and appears to be at least professionally its first victim.

Fred, thank you. Frederik Pleitgen is in London for you.

Taking a very short break at this point. Back after this.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

CESAR HERRADA, MAKERBAY: Imagine a boat that has flexible hull. Instead of having a boat that is rigid with a rudder at the back, you actually have

the whole boat can bend. And so that gives you better control of the trajectory and also you have more energy efficient and safer.

It's a platform technology that could be used on literally any boat. In 2015, we opened this place, Maker Bay, in order to be building bigger and

bigger boats.

I'm Cesar Herrada, I'm inventor of (inaudible) and director of Maker Bay. And this is the team.

My full time job normally is to build shapeshifting boats. And I realized that I didn't have the resources in Hong Kong to actually have a big space

to build these boats. That's why we're trying to bring this (inaudible) space to community and services into one same place and to make it easy and

fast for anyone.

Children, hobbyists, professional designer or engineers to come in this place and go from an idea to a finished product as quick as possible.

FIONA CHING, MANAGING DIRECTOR, MAKERBAY: Hi, I'm Fiona Ching. I'm the managing director of MakerBay.

We're a very small team here, a typical start-up company. My role at the beginning is to help set up the whole space. It was a very old factory, so

we renovated the whole thing. And then after the space is ready, we started recruiting members, and organize workshop and classes, basically to

build a maker community here.

The concept of Maker couch is quite new in Hong Kong. So, we spend some time to understand what the market wants and what we can offer. So we

spent around six months to build different curriculums and also to develop our surfaces.

KEN CHEW, MAKERBAY INSTRUCTOR: Hi, I'm Ken Chew. I'm a joint instructor here at MakerBay and a co-founder of (inaudible).

We started off small like I'm a member, or resident maker as they say. But over the time, we find that our interests are sort of like jibe.

We have the same goals and to spread awareness in terms of the maker spirits.

Three months ago probably I wouldn't even have thought of doing classes after classes. I was just coming in to see if I can use the facility to do

my hobby, which is (inaudible). And they started encouraging me and say, hey, what you're doing is actually cool. And probably a lot of people

would be interested in that. Why don't you try (inaudible).

I think MakerBay is the platform where they provided me with not just space but also with the support.

HERRADA: Well, I wish that this place is a place where people can try things and fail, but be in an environment that's favorable and it's

supportive for them to try harder and harder things. It's really driven by curiosity, driven by empathy, and that's what I think makes this space

interesting.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

[11:55:04] ANDERSON: Well, before we draw this show to a close this evening, I want to

get you to Cairo where two sisters are breaking into the fashion industry with their own handbag company.

CNN's Amir Daftari has their African Startup story.

(BEGIN VIDEOTAPE)

AMIR DAFTARI, CNN INTERNATIONAL CORRESPONDENT: The back alleys of Cairo, a side to the city very few people see.

This old tannery has been around for decades. Animal skins are washed, dyed, dried and then made into leather. It can be a daunting place and not

exactly where you'd expect to find two young women.

But sisters Monaz and Ayah (ph) are here to do business and they negotiate hard.

So, what they are arguing about there is that the girls haven't got the right quality of leather

they wanted. And there's a dispute of what kind of leather they are going to get next.

It's something these two entrepreneurs have had to adapt to quickly...

UNIDENTIFIED FEMALE: How come other people get better quality than us?

DAFTARI: Making sure they get premium materials is essential to their startup.

And this is why: handbags and accessories that are 100 percent made in Egypt. Okhtein, they call it a fashion brand with flair.

UNIDENTIFIED FEMALE: We wanted to create carryable art and wearable art. Why bags? I think -- we were like, OK, it's something so personal to a

woman. She carries everything inside. Why not make it very...

DAFTARI: Combining art and entrepreneurship -- for these sisters, learning on the job.

UNIDENTIFIED FEMALE: It's very hard to translate our designs to very skilled artisan, because they were all used to the traditional way of

creating a handbag. And we wanted to kind of like turn that around.

UNIDENTIFIED FEMALE: And it was because we were young ladies, and here it's a very male-driven society and culture. So two young ladies not

bossing men around, but ordering men around, that was very difficult.

UNIDENITIFIED FEMALE: Very difficult.

DAFTARI: Okhtein has only been in business for a year, costing between $90 and

$400, they have already sold around 1,500 bags. Most sales happen online mainly through their Instagram page. But now they got a pop up store as

well.

Which one would you say most popular bag or handbag.

This one right here?

UNIDENTIFIED FEMALE: Yes. And I think it's like (inaudible) and practical it is Also one actress, Emma Watson, was spotted wearing this bag.

DAFTARI: Oh, so she wore this exact bag.

So, what happened to sales?

UNIDENITIFIED FEMALE: They tripled.

DAFTARI: So just off back of a celebrity wearing this bag.

UNIDENTIFIED FEMALE: Exactly. And then it became like the most popular.

DAFTARI: So, if i wear it, then surely sales will increase ten fold. What do you think?

Celebrity endorsements aside, the sisters are keen to keep Okhtein accessible to all.

UNIDENTIFIED FEMALE: One of our philosophies is that the girl that does not want to spend a lot of money, or can't afford to spend a lot on

designer bags, yet find something very original, this is where we come in.

DAFTARI: Coming in and coming up. These startup sisters are building a brand that's not only

successful but stylish, too.

Amir Daftari, CNN, Cairo.

(END VIDEOTAPE)

ANDERSON: All right. I'm Becky Anderson. That was Connect the World. Thank you for watching from the team here and those working with us around

the world, a very good evening.

CNN, though, continues after this short break. Don't go away.

END