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World Business, Political Leads Meet in Davos to Discuss Uncertain Future. 10:00a-11:00a ET

Aired January 18, 2017 - 10:00   ET



[10:00:15] UNIDENITIFIED MALE: We're moving from a situation where you have NAFTA to a new situation we don't know, but where the president-elect

of the United States is saying clearly, America first, jobs in the United States.


BECKY ANDERSON, HOST: Uncertainty at a time of transition as the United States prepares for a handover of power. What is the rest of the world

readying for. We're live for you at the World Economic Forum in Davos this hour where leaders from all walks of life are trying to read the

geopolitical tea leaves and react accordingly.

Coming up, I'll ask the UN's humanitarian get the Davos digest of what's shaping the global economy this year, our emerging markets editor has that


Right. A very warm welcome from Davos. It is 4:00 in the afternoon. This is Connect the World with me Becky Anderson.

We are coming to you today from this small Swiss town that is awash this hour with big ideas and big concerns. We are on the brink of seeing a new

U.S. president sworn in and with it a new world order, also it seems, to many. In a world where many voters blame the elite for their economic

woes, the populist politics of the past are making a comeback in many parts.

The only thing that seems to be uniting people at the moment is just one question: just where

are we headed in 2017?

Well, who better to ask our Richard Quest who has spent the last few days in Davos asking that very question. Richard, where are we headed?

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: The people don't know. There is a -- they have been told that the earth is flat. Basically the

globalization movement that has driven so much of this organization and the global economy, and Donald Trump threatens that in a fundamental way,

because he's not talking about free trade, he's talking about fair trade.

Now, look, this is the it's a bit of a mess here, we do have a tidy it up. We put Trump Brexit, trade, populism, EU, Russia, protectionism. But look

what other people have added -- U.S. institutions, technology, jobs, tech, health care, politics, foreign exchange, taxes and regulation,

And what we see is we're told again and again, Becky, by everybody the level of uncertainty is high, this proves it. They're all over here, with

one or two outliars who are deciding to be contrarian. We need to tidy that up.

ANDERSON: Yes you do.

Correct me if I am wrong, but it is fretting largely based on a potentailly different narrative from a President Trump than a Candidate Trump that has

these guys here and elsewhere in this incredibly uncertain state of mind, isn't it?

QUEST: You get a presidentail tweet, and you respond. General Motors did, Ford did, Carrier did, BMW has said it's not going to move cars. But what

is the reality of American -- global business when the president-elect is saying bring back jobs or I'll tariff your company. Carlos Ghosn of

Renault/Nissan made it quite clear he is very much taking that into account in his planning.


CARLOS GHOSN, CEO, RENAULT-NISSAN ALLIANCE: I think any car manufacturer who is not starting to revise his plan because we're moving from a

situation where you had NAFTA to a new situation we don't know, but where the president-elect of the United States is saying clearly, America first,

jobs in the United States and you see that most of the car makers have already not

only listened, understood, but integrated this message into the decision. You have seen how many decisions of investments have been made already in

the United States, so the message is clear.


ANDERSON: What an exhausting time it is for these CEOs, strategists at the beginning of this year.

QUEST: I'm just curious, when you left AbD dhabi, what was the temperature?

ANDERSON: About 28 degrees centigrade. It is actually rather pleasant here, isn't it?

QUEST: You know this of old, mom, 20 minutes after that goes down it'll be down in the minus. Minus 20 last night.

You won't be wearing a light jacket like that in a few hours from now.

ANDERSON: Well, thankfully my show will finish at 5:00 p.m. local time. You'll have to go on after me.

When I came down, up on the train yesterday, one of the world's disgruntled, as it were, had taken the trouble to write elitist felons in

10 feet high letters in the snow at Davos. There is a sense from so many people around the world, it is the sort of people up here that have broken

this system and broken the middle class.

Is that fair?

[10:05:28] QUEST: Xi says you can't blame globalization for all the world's ills. And he's right. But there is a sense that these are the

proponents of globalization, and they are the masters of the policies that are implemented.

So yes, there is a fair point to the people saying, hey, government leaders, CEOs, even NGOs, we have lost out and you haven't accounted for

it. The problem is, you balance that with the hundreds of millions of people in the developing world who have been lifted out of poverty. It's

not a zero sum game, but what has happened is those who had, no longer have.

ANDERSON: Donald Trump seems to think it's a zero sum game. Well, anyway, we'll find

out what he really thinks in what, we're talking hours now, aren't we? Friday.

All right, Richard, thank you. While Richard's scale highlights a mood of increasing uncertainty, then, we are also seeing that 2017 could be the

year of the strong man, as the likes of Mr. Putin, Mr. Erdogan and Donald Trump all dominate the global agenda,

that, coupled with the populist wave cresting some argue that the future of liberalism and democracy in the balance.

Well, my next guest in an op-ed on argues her native Turkey is a, quote, bitterly and sadly polarized country. We have been divided into

invisible, cultural and political ghettos of citizens. And she goes on to say, the only possible way forward is by urgently repairing and restoring

our badly broken democracy.

And today a step of a different kind. Turkish lawmakers could soon be changing the parliamentary system to a presidential one. They are voting

on controversial reforms that would hand sweeping powers to the president. The so-called power bill, if passed, would consolidate the power of three legislative bodies into one

executive branch with the president in charge. Turkey's main opposition parties fiercely object to the changes.

Well, award winning Turkish novelist Elif Shafak joins me now. She is the author of 15 books. He latest is titled Three Daughters of Eve and she

joins me now. Elif, welcome.

If you reflect on what we are seeing around the world, which is a new era, it seems, of strong-armed leaders, that would mirror, I think it would be

correct in saying, what many people feel is going on in Turkey at the moment.

Isn't it time to concede that liberal capitalist democracies as we knew them are over?

ELIF SHAFAK, NOVELIST: Many people like to to believe that Trump is a single phenomenon, but I think there are amazing similarities when we look

at both sides of the Atlantic. Of course there are differences as well. But there's an underlying current of populism. And it's the belief that

sameness is going to bring us safety. This is an illusion. But we have seen similar patterns in Turkey, definitely, and increasing

authoritarianism. Also in Hungary, Poland, democracy is quite fragile. It is not a bed of roses, but it's the best system we as humanity could come

up with. And we need to defend it.

It is very fragile when it comes to those parties that come to power by using the means of democracy. And once they are in power use that position

in order to suppress everything else.

ANDERSON: These constitutional changes, which are likely to come about in Turkey, it will be offered to a public referendum, but I would guess that

the ruling elite are pretty confident that these powers will be afforded to the president, his supporters would say this is a positive change and a

very big one in Turkey's political history. But they will say it's positive.

SHAFAK: I am very, very concerned about all that's happening in Turkey, because we used to have a much more robust civil society.

Let me put it this way, the biggest mistake in my opinion, the political elite in Turkey are making, they are confusing majoritarianism with

democracy. These are two different things. For a proper democracy, for a mature democracy, the ballot box is not enough. But the (inaudible)

politicians are saying, look, I have the ballot box. I have the elections. And I have the support of the people. By the way, let us not forget that

Turkey is a badly divided, bitterly polarized society, but they're saying if I have the votes that means I have the legitimacy.

However, free elections, the ballot box, of course it's important, but it's only one of the requirements for democracy. For a true democracy, you need

other things. You definitely need women's rights, minority rights, definitely rule of law, and the free media, which doesn't exist in Turkey

any more. How can I call it a democracy?

[10:10:ANDERSON: These are issues that the European Union has been very vocal about, and yet you, yourself, have said to the EU in a reach out as

it were, in reports, that you shouldn't isolate Turkey. You shouldn't push it aside. So how do you explain those comments you've made?

SHAFAK: Yes, absolutely. I mean, one can be very critical of the government, but let us not

make the mistake of identifying a government with the people. Turkey is a very important country. It's a very multi-layered country, and when you

focus on the society -- the youth, women, minorities, ethnic, sexual, cultural minorities, all of them are tehre.

There are lots of democrats in Turkey who feel incredibly demoralized and abundant, let us not isolate them.

My fear is the more Turkey is pushed away from the EU, displaced, directly placed into the hands of isolationists. And who are the isolationists?

They are the Islamists, the ultra-nationalists, and of course those who benefit from increasing authoritarianism.

So, we need to keep the dialogue open. At the same time, we can be critical of the government.

ANDERSON: How do you expect a new President Trump to get along with a newly sort of -- a man who's got newly acquired sweeping powers, that of

the president of Turkey?

SHAFAK: I think whether we like it or not, we are all connected, our destinies are connection, and populists in one part of the world

emboldened, encourage populists elsewhere. Extremists on one side of the world create more extremists elsewhere. We have to see those connections.

And as people who believe in diversity, the value of diversity, democracy, because I think Democracy is going through a very difficult stage at the

moment, but of course also liberal democracy specifically, we need to work together across the borders.

I am very worried that Trump's messages, especially about his take on foreign policy, is going to have knock on effects on other parts of the

world, and embolden authoritarian leaders who will say, look, this is a zeitguiest.

ANDERSON: Is it the fault of, as I was explaining to Richard, those who are at the top of

this hill, described in the snow near the station as the elitist felons? Is it those that are here that have helped create this system that so many

people are suggesting is a broken political and economic system that we live with today?

SHAFAK: Yes. My concern is, we tend to swing from one mood to the other very quickly. Let us remember, two decades ago, there was so much optimism

about globalization, we would become a national village, nationalism...

ANDERSON: They loved it up here.

SHAFAK: The borders would become meaningless, but now we have come to the opposite feeling. We have to see that globalization is much more

complicated and it brought the best and the worst in us.

Those people who have benefited from globalization did not see those who suffered from it, but also visa versa. So it is gaps -- cultural,

economic, and cognitive gaps that we should be concerned about. It is inequality that we should be concerned about.

But let us not forget that this is -- I think this is a very important point, populism makes its own myths. So, lots of populist demagogues tell

us, look, they are the elites, they are the establishment, but let us not forget that forget today's populist demagogues are also part of the elite

and they're also part of the establishment.

ANDERSON: You make a very good point.

SHAFAK: Just with a very different ideology.

ANDERSON: Thank you for joining me up here in Davos today.

Richard's right, the sun is going down and it is getting colder. Lots more from Davos this hour. We'll be getting the economic outlook with 2017,

then, with our emerging markets editor, my colleague, John Defterios. geopolitics between Saudi Arabia and Iran likely to impact crude oil prices

in 2017, that's on top of the uncertainty over global trade, and we'll also be hearing from the UN humanitarian relief chief on new challenges in

funding global aid efforts.

We are taking a very short break. We'll be back after this.

No we won't, we're going to keep going.

This year in Davos, we have seen a role call of world leaders, including the Chinese president for the first time, but a leader everybody is talking

about are going to see a roll call, the elephant in the room hasn't even taken office yet. Donald Trump will be inaugurated in

just two days. And right now, more of his cabinet nominees are on Capitol Hill ready to face what can only be described as a grilling. That includes

Nikki Haley, Trump's pick for ambassador to the UN. She is expected to challenge U.S.

contributions to the United Nations at her confirmation hearing and ask whether the money spent is worth it.

Well, Donald Trump prides himself on his connection with ordinary voters and yet, he's actually seeing historically low approval ratings heading

into the White House. A CNN/ORC poll finds just 40 percent of Americans like the way he's handling the presidential


Well, contrast that with President Barack Obama. He's leaving office, he's got his highest approval numbers since 2009: 60 percent -- 6-0 percent,

that puts him third among recent presidents for end of term approval ratings behind Bill Clinton and Ronald Reagan.

Well, one of Obama's final moves as president is a controversial one. He has commuted Chelsea Manning's prison sentence.

In 2010, you may remember, the military intelligence analyst gave hundreds of thousands of

classified documents to the WikiLeaks website. Well, Manning's sentence was cut from 35 years to seven, pushing up the release to May of this year.

Now that leak, which was the largest in U.S. history, included this video of a U.S. helicopter firing at insurgents in Iraq and killing at least nine

civilians, including two journalists,

Well, Manning published those documents, Julian Assange has agreed to be extradited to the United States now that Manning's sentence has been

commuted. He is holed up in the -- Ecuador's embassy to avoid extradition to Sweden where he's wanted on sex assault allegations.

It's slightly complicated, isn't it?

Well, let's explain all of this to you. Let's bring in Nic Robertson. He's outside the Ecuadoran embassy in London -- Nic.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: Yeah, Becky, there's even more layers to it as well as we'll unfold here. Julian Assange has

welcomed as a victory the commutation of Chelsea Manning's sentence. And a couple of days prior to that he said if President Obama commutes Chelsea

Mannings sentence, he would turn himself over to U.S. authorities.

Now, ostensibly he's been holed up here in the Ecuadorian embassy for the last four-and-a-half years, because he faces extradition to Sweden, but he

says he feared if that happened will agree to extradition.

He fears if that happened he would be extradited to the United States to face unspecified charges. Investigators in the U.S. said that they have

been investigating him.

His lawyer has now tweeted that...

ANDERSON: All right, I lost Nic there, apologies for that. We seem to be having some technical difficulties, but we will crack on. You got the gist

of it.

Barack Obama will hold his last news conference as president on Wednesday. You can watch that right here on CNN. Our special coverage begins at 2:00

in Washington, that's 7:00 p.m. in London, and 11:00 p.m. in Abu Dhabi, where you will know if you are a

regular viewer, that we are generally based. That's our home in the UAE.

We're live, though, from Davos this hour or a special edition of Connect the World at a time of great global change and uncertainty.

Much more to come. You're watching CNN.


[10:21:00] ANDERSON: Right. You're back with us here in Davos. This is CNN. You're watching Connect the World with me, Becky Anderson.

As the global elite get to grips with a political field in transition, it's not just the world's political and financial leaders who are here, the

United Nations, along with a host of international charities and aid groups, are also at the World Economic Forum. And they are hoping to cash

and commitments to tackling the most pressing humanitarian crises like the ongoing one in Syria.

But with leaders grappling with so much change within their own countries, that may be a much harder task this year than in previous years.

Stephen O'Brien is the United Nations undersecretary general for humanitarian aid and emergency relief coordinator joining me now. of you

know is our home, but we're in Davos, at a time that will reflect great global change within their -- much harder task than in earlier years. How

do you feel as we move into what is a year of certainly unpredictability and many people concerned and fretting about what we are facing.

STEPHEN O'BRIEN, UN HUMANITARIAN AID AND EMERGENCY RELIEF COORDINATORY: Well I'd go further, I'd say it's actually chaotic and extraodinarily

complex, when I look at the humanitarian needs for 2017, we are looking -- having identified about 130 million people who need our help. We've

already prioritized that 93 million need our help tonight in order to help save their lives, in order to make sure they're protected as civilians from

bombing and other attack.

And so it's very important to recognize that's going to take about $22.2 billion, even for those of us in the United Nations system and all our

partners, including the international and national NGOs on the multilateral basis to reach those people. And last year, we closed

out by having raised half what we needed, which was obviously less than that.

So, yes, we are really faced with a challenge, because we can't do our work unless we have access. And we can only have access so long as we bring the

right things to help people save their lives. That costs money.

So, those are the two things we need.

So, as we face the unpredictability, as you put it, we have to reach out and to forge new partnerships as well as build on the genuine successful

track record of delivery.

ANDERSON: Why you all come to a meeting like this, correct, because herein lies some very,

very deep pockets. And I have to say, viewers, not everybody here is as pessimistic as we're suggesting. There is an overarching sense of

pessimism, but there's money up this hill, are you getting it? Where are you getting it from?

O'BRIEN: Well, we do have many countries who have repeated year upon year, giving very generously to the United Nations, particularly for humanitarian

emergency relief, whether it's natural disaster, or now more than 80 percent coming out of man-made conflict. And you can see that whether it's

Syria and Iraq and the surrounding countries, it could be Yemen and South Sudan, Lake Chad basin, these are vast humanitarian needs we have to meet.

And it's our not just our moral duty, it's the sensible right thing to do, because if you don't address it, you leave an even more chaotic, uncertain,

unpredictable world and protracted crisis, which does not help the political stability and economics going forward.

ANDERSON: Are you fretting about a Donald Trump presidency?

O'BRIEN: Well, it's all part of the change and transition, which you referred to earlier. And so we all have to adjust to what are the new

political priorities, but I'm very clear that the case you for saving life, for protecting civilians in conflict, it's a good case. We have a great

track record. We can always be better at the use of our money. We can always be more

efficient and create more impact. But that doesn't mean that what we have done in the past is other than very, very good.

So, we need to build upon that success, invest in humanity, and make sure that this world is there for a more secure place overall and doing right

and fair by the people who need it.

ANDERSON: The work you do is generally with people who might suggest that they have been in the back draft of a failed policy of globalization.

Globalization was supposed to decrease inequality, was supposed to create jobs, increase wages. It certainly wasn't expected to push the sort of

tsunamis of people around the world that we have seen over the past couple of years. Do you blame globalization for these inequalities?

[10:25:11] O'BRIEN: Well, in many ways, I don't, because the globalization of information, the nanoseconds within which you can report on a disaster

that's taken place somewhere the other side of the world and to have very real information about what's really happening, that mobilizes the effort,

the funds, the technical expertise and the political will to meet those needs.

Now in natural disasters, that can happen with a pretty ready heart as well as a pocket, it's more dificult in conflicts, which is why we have much

more complex issues to deal with. But nonetheless, we have to make that case.

So, I think it can be helpful, we shouldn't just see it as a problem.

LU STOUT: Let me just ask you finally, you have been very outspoken about the situation in Syria and the effects that that is having on those those

who are there and who are having to leave. Are you optimistic as we move towards a meeting, which on paper at least suggests that there is a

solution, and a solution in the shorter term than others might have expected? I'm talking Astana here?

O'BRIEN: Absolutely. Well my focus is as always, as the humanitarian in the UN, making

sure that we're focused on international humanitarian principles of independence, making sure we're neutral, always delivering what's needed.

ANDERSON: Are you positive about the meeting? Do you think there's a solution at the back end of it?

O'BRIEN: We should welcome wherever the cessation of hostilities, broadly holding, wherever we can build the will for people to attend to start

talking rather than to use violence to try and settle their differences. And so I remain not able to make a judgment about

whether it will or won't happen, all I know is that the right steps are being taken to try and make it work, and then lead that to Geneva and to

resume genuine talks that could get back to where the new secretary general is talking about. We need to be much better at getting at the root causes

and above all the prevention agenda and resolving conflict and making sure that we're not always carrying this terrible price on people because of

conflict, which are the way that too many differences are trying to be settled.

ANDERSON: It is always a pleasure having you on. Thank you, sir. And a very -- or good luck for 2017. We're only at the start of it.

Live from Davos this hour, we have a lot more ahead from this year's world economic forum. And you've got other world news, too, of course, as tension

between Russia and NATO countries rise. We visit a Russian border town to see what concerns people have there.

You're with CNN. We are taking a very short break. Back after this.



[10:31:39] ANDERSON: European leaders have been expressing their concern after Donald Trump said he thinks NATO is obsolete. The people people in

one Russian town just across the border from Estonia say they are not too concerned about the military alliance. CNN's Clarissa Ward is there and

she filed this report.


CLARISSA WARD, CNN SENIOR INTERNATIONAL CORRESPONDENT: We're here in the city of Pskov which is just a stones throw away from the border with the

European Union. And as NATO builds up its presence across Eastern Europe and across the Baltic States, people here in this ancient fortress city say

that they're actually not too worried about it. Because Russia is also building up its presence along the border and holding its own military


UNIDENTIFIED FEMALE, (through translator): I think our city is well protected. After all we have so many divisions and troops here. We are one

of the most advanced powers in the military stance. So, we shouldn't be afraid.

WARD: It's not the fear of a military escalation that preoccupies people here most. Life in Pskov is tough. The average wage is just over $330 a

month compared to $1,100 in Moscow. The young people are leaving. The population is dwindling and alcoholism is rampant.

UNIDENTIFIED MALE (through translator): People don't buy new clothes anymore. They buy less food because they only have enough money to pay the

bills and for the basics.

WARD: Well, most people here say that they're not interested in politics. They are waiting and watching to see whether things might change under

President Donald Trump. Trump has called NATO obsolete. And he said that he may consider lifting sanctions against Russia. That has a lot of European

leaders feeling very anxious. But to most people here, its music to their ears.

Clarissa Ward, CNN, Pskov, Russia.


ANDERSON: Well, one man's name is on the lips of everyone here at Davos. Donald Trump is not here, but he's sending shock waves across the Atlantic

and he hasn't even taken office yet, aside rom describing NATO as obsolete. The U.S. president-elect is also alarmed Washington's longtime allies with

his praise for Russian President Vladimir Putin. Well there's also criticism of German Chancellor Angela Merkel. And over the weekend, Trump

even suggested the One China policy was open to negotiation.

Clearly, U.S. foreign policy is in for a major shake-up under the Trump administration.

Well, my next guest, Lally Weymouth, invited Donald Trump to that dinner six years ago. She is a senior associate editor for The Washington Post.

That dinner I refer to is the Washington correspondent -- the White House correspondents supper in 2011. You famously now invited Donald

Trump to that and there are those who say that it was at that when he was chided as it were, I guess, by President Obama that he decided he was going

to run or office.

So, for those who are fretting about a Trump presidency, as you to blame?


But Obama did attack him for the entire speech. And I think that Trump and myself were certainly not expecting this.

[10:35:07] ANDERSON: So you're not to blame, is that you're telling me?

WEYMOUTH: No. I'm not to blame.

ANDERSON: What do you see, then, from a Trump presidency?

WEYMOUTH: Well, I think that he's very focused on what he's talked about all during the campaign. He's very focused on growing the American economy

and creating more jobs in America.

ANDERSON: Repealing Obamacare, jobs in America, that there has been some evidence of so far as new jobs in America, most of those companies say

these jobs were on the cards anyway. But what is it that a President Donald Trump is going to do than is any different than a candidate Donald

Trump because there was a lot of very, very heated rhetoric that wasn't very presidential.

WEYMOUTH: I don't disagree with you. But I think his main aim is to create jobs in America right now and to grow the U.S. economy. And a lot

of businessmen, I think, are actually pretty happy with this agenda if the economy grows. And they see possibly America becoming the engine of

growth, whereas we used to look to China as the engine of growth. So that would be a big turnaround if it happens.

ANDERSON: Were you reassured, because many people here were. I mean, there are -- there is a lot of concern about the uncertainty that a Donald

Trump presidency has. Is he going to go for broke and start these trade wars, trade conflicts? Some reassuring words to the people here in Davos

from the Chinese president, no less, here.

You know, it's not a slam dunk that other countries aren't going to gain from a U.S. -- the demise in a U.S. economy under a President Trump.

You're being very positive about this. We know absolutely nothing, really, about what he's going to do next.

WEYMOUTH: No, you're talking about his foreign policy, but I was talking about his domestic policy. I think that you brought up the One China

policy, which I think is very important, and he is going to have to renew the One China policy. He is going to have to repeat the One China policy.

And as for international trade, I think that he is very bent upon this. He's very bent upon fair trade, as he calls it, versus free trade. Like it

or not, that's his view. And I think they will enforce that.

ANDERSON: So what is his foreign policy going going to be when it comes to the Middle East, for example?

WEYMOUTH: Well, I mean, I talked to the leader of the Kurds -- I interviewed the leader of the Kurds in northern Iraq yesterday, and he told

me that he believed that there would be a deal between Russia and the U.S. I don't know if he has any more information than I do. But I asked him,

well, OK, who are the winners and who are the losers? Is it Ukraine that gets traded, is it Syria? And he said obviously he didn't know who the

winners and losers were, but he believed there would be a deal and he believed there had to be a deal to stop the fighting in Syria.

ANDERSON: Fascinating. All right. Well, we will find out more after inauguration. I want to look at out how much Friday's inauguration, and

the week leading up to it, could cost, Lally. And bear with me for one moment while I give these estimates to our viewers based on past events and

from planning official suggest that the pricetag could top $200 million.

WEYMOUTH: And how much did Obama's cost?

ANDERSON: Do you know?

WEYMOUTH: No, do you?

ANDERSON: But I think -- you're pushing me, I might. Hold on for one second.

WEYMOUTH: But I think Trump is aiming to have his costs way less. I know there are two -- I think there are less inaugural balls. And I think his

whole -- I'm not speaking for Trump, but I just -- from reading the papers, I think his effort has been to reduce the price.

ANDERSON: OK. Well, let me give you some more numbers, because we are -- I'm not through my shopping list of costs here. Taxpayers and private

donors foot most of this bill, apparently, for inaugurations. Some estimates suggest that the committee running the event has raised as much

as $90 million in private donations. You're happy with that, are you?

WEYMOUTH: what's wrong what that?

ANDERSON: I'm just asking you.

WEYMOUTH: Well, the taxpayers aren't paying it, private people are paying it.

ANDERSON: All right, and Trump's inauguration could be on course to become, let me put this to you, the most expensive in history, this from a

president who has the worst approval rate -- or some horrible, to use a choice phrase that the president-elect uses himself, some horrible approval ratings in the latest poll that CNN and ORC

has conducted.

WEYMOUTH: I think the inauguration will be fine. And I think that people should just get over it. And I think should with it and give him a chance

and see what he does instead of judging him before he's even president.

ANDERSON: Oh, here's some optimism here in Davos today.

WEYMOUTH: No, I think...

ANDERSON: Thank you for joining me.

WEYMOUTH: Thank you, Becky.

ANDERSON: Live from The World Economic Forum, this is Connect the World. Coming up, is the economic outlook from Davos as uncertain as the political

one seems to be? Well, I'm going to speak with our emerging markets editor John Defterios. He's up after this short break. Don't go away.



[10:42:14] JAVAD ZARIF, IRANIAN FOREIGN MINISTER: I believe that we need to wait for the administration to take office before we start passing

judgments. Of course we have very fundamental differences with the United States.


ANDERSON: Iranian foreign minister Javad Zarif there saying his country will take a wait and see approach to the Trump presidency.

Welcome back to Connect the World. We're live for you in Davos this hour.

And speaking here earlier, Mr. Zarif also said he doesn't see any reason Iran and Saudi Arabia can't work together to stop conflict in Syria and

Yemen, although he did acknowledge there are, quote, a lot of grievances between the two countries.

Well, there is common area -- common concern for the two countries, and that is the oil

markets. And for more on that, I want to welcome CNN Money's emerging markets editor, John Defterios. I mean, some certainly some conciliatory

words, as it were, from the foreign minister of Iran towards what is a geographical foe, if nothing else, in Saudi Arabia.

But we are, it is fair to say, seeing an area of common concern. And, you know, where we see a trust deficit in so much when it comes to Saudi and

Iran, we're actually seeing a bit of coming together. Explain.

JOHN DEFTERIOS, CNN MONEY EMERGING MARKETS EDITOR: Well, in fact, this time last year, I couldn't have said that, Becky, because that was the

major hurdle, the number one producer of oil in the Middle East and the number two in terms of reserves being Iran, they were always at

loggerheads, and in fact we had that showdown in Doha in the spring, Ali al-Naimi (ph), who was the foreign administer of petroleum for Saudi Arabia

came down and said you need to cut. You can't come into your presanctions high above 4 million barrels a day, and he had the instructinos to leave

the meeting if they couldn't find a compromise.

They made a shift. Khalid al-Falih is now the minister of -- as you know - - energy, mining and industry. And he sought a compromise. He says we can work together.

So, the magic number, not to get bogged down in the details, was 4 million barrels a day. They didn't want Iran to go above 4 million. They came in

just slightly under. The minister for energy in Iran, Bijan Zangeneh says I can make that happen.

Both had compromises. I heard from both sides behind the scene saying, we want this to work, because it's in our interest to see a higher oil price,

and that what happened in 2016.

ANDERSON: And interestingly enough, I was talking to some people here and they were reflecting on the fact that at this meeting in Davos in 2016,

when the oil price was below 30 bucks on the barrel, there was much concern by those who care for a higher price that it could go even lower. At 50

odd on the barrel at this stage, the oil price is in good shape. Where does it go from here?

DEFTERIOS: Well, it's interesting. We've doubled since Davos 2016, 27 up to 54. And we were covering it last year. And I remember, it almost felt

like one of these Davos cliffs, because many were talking about $20 a barrel. And they had that showdown between Saudi Arabia and Iran. Cooler

heads prevailed.

And most believe we're in that sweet spot between $55 and $60 a barrel. And in fact I spoke to the CEO of Saudi Aramco today, and he said the great

re-balance or the great glut of a billion barrels is finally eaten up. He thinks we can get to that balance by June 2017, and he needs it. He needs

to do $2 trillion valuation on his IPO in 2018.

I sat down with him earlier. And i started on is the market truly rebalancing? We talk about it, but is it really going to happen? Let's

take a listen.


[10:45:44] DEFTERIOS: I have seen a recovery of 300,000 barrels a day in shale already. And I see expectations of another million barrels by the

end of 2018. Is that overestimating the potential bounce back of U.S. shale?

AMIN NASSER, CEO, SAUDI ARAMCO: I doubt it will be increasing by a million barrels, but it all depends on the prices and how it improves through 2017

and 2018.

To us, the unconventional oil, or shale oil, will -- additional production will come on stream with (inaudible) and that's well known from day one.

So, there is going to be in '17 additional barrels coming. How much? That is -- we'll wait and see how much barrel that will be coming on, on the


DEFTERIOS: As you know, this new administration wants to be pro oil, if you will, as an oil

producer, one of the largest producers in the world, wouldn't it be alarming if the U.S. went down this path to put on protectionist measures

to oil, something that's never done before.

NASSER: We don't like to see any protectionist measures in oil or other sectors, but it is something up to each country to decide on. And we will

wait -- on the other side, we will wait and see what type of measures will be taken. No decision is yet taken for us to comment on.

DEFTERIOS: There's been some doubt whether you're going to deliver on the planned IPO in 2018. It slid to the second half of the year. Will you

deliver it in that time frame?

NASSER: There will be no change sin your plans to -- for the IPO. We always say 2018, or still talking about 2018.

DEFTERIOS: Originally, it was the first quarter 2018.

NASSER: No one say -- talked about (inaudible).


NASSER: This is only at your end, but nobody talked about (inaudible) it was always 2018 and we're still saying 2018.

DEFTERIOS: Part of your valuation is based on the proven reserves of over 250 billion barrels. Could you see an effort here to do a reevaluate of

those reserves? And will they be going higher in preparation for the IPO in terms of discoveries.

NASSER: Wwe are confident in our reserves. And when we are listed with the regulations in the market that will be listening, and we will abide by

that regulations. We are very comfortable with the size of our reserves, and with the methodology we use to calculate our reserves.


DEFTERIOS: The methodology to calculate our reserves of 260 billion barrels. They're comfortable. That's going to be the largest IPO, if they

pull it of, in 2018. It's all part of that 2030 plan, that you know about, in Saudi Arabia for diversification.

Good. All right, John, John Defterios in the house for you.

All this hour, we've been looking at the challenges and opportunities that lie ahead in 2017. For the biggest risks, then, facing the global economy,

do head to there, John says, we should all keep a watchful eye on the Trump presidency as the Chinese business facing


[10:51:15] ANDERSON: ...his family are getting a head start. Movers have been spotted taking boxes into the house they are leasing in Washington.

Getting things done early is probably a good thing.

Inaugural moving day is mayhem. Randi Kaye shows us how it all gets done in so little time.


RANDI KAYE, CNN CORRESPONDENT: It's organized chaos inside the White House on inauguration day. By 10:45 a.m., the Obamas will likely leave the White

House for good, giving the chief usher and his staff just six hours to get the 132-room mansion ready for the new administration. Former White House

Chief Usher Gary Walters helped coordinate the moves of five Presidents including Reagan, Bush 41, Clinton, and Bush 43.

GARY WALTERS, FORMER WHITE HOUSE CHIEF USHER: It's a choreograph. It's like a ballet.

KAYE: The Chief Usher has a swat team of about 90 staffers but every second counts. By the time Donald and Melania Trump return from the inaugural

parade, the White House has to feel like home.

WALTERS: Their clothes are in their closets. Their personal effects are in the bathroom. Their favorite foods are in the kitchen. We break the staff

down almost minute to minute on their activities.

KAYE: Florists, art curators, carpenters all pitch in.

With only three small elevators in the White House residence getting one president out and the other in is never easy. Depending on how much Donald

Trump is planning to redecorate, walls need to be painted, carpet change, paintings hanged, books set on shelves. The staff eats at scheduled time so

the work never stops.

The chief usher usually work closely with the first lady. Walters helped Hillary Clinton choose wallpaper and Laura Bush pick out China. But even a

dance as well choreographed as this one isn't always perfect.

In 1993, Walters lost his voice and had to write all directions on a notepad. When Bill Clinton arrived he welcomed him with a whisper. That

same year, Mrs. Clinton's inaugural ball gown disappeared during the move.

WALTERS: There was a rather frightful time for about 15 minutes until we located the dress.

KAYE: And on inauguration day in 1989, Bush 41s granddaughters surprised the White House staff by showing up 2.5 hours early in the middle of the

move. This year, if all goes smoothly, the Trumps will never know of chaos that preceded their arrival at the White House. The chief usher will meet

Donald Trump at the door and offer a simple greeting "Welcome Mr. President to your new home."

Randi Kaye, CNN, Washington.


ANDERSON: Well, CNN has unique access to Barack Obama's final days in office. Tune in for the end, inside the last days of the Obama White House

airing Thursday at 1:00 p.m. in Abu Dhabi, our home, generally. That is 5:00 p.m. in Hong Kong.

Well, the view here in Davos is frankly stunning, but a lot of ordinary people around here think the world -- around the world think that being

here, perched high up in the Swiss mountains, doesn't let the world's richest and most powerful people really see everyday life.

For your Parting Shots, then, today, here are the views of some ordinary Joes just like you and me.


UNIDENITIFIED FEMALE: There is a fear, there is a general fear in the fact that there's no employment for everybody, and there's no employment


UNIDENTIFIED MALE: They're sitting in an office and don't see the real world is, and they don't react quick enough to what are the real problems

out here on the street.

UNIDENTIFIED MALE: I don't think the world leaders really impact my life. I think that's overblown.

UNIDENITIFIED FEMALE: Our lives are totally different. We're the peasants and they're the privileged.

KAREN WEBB, RETAIL VENDOR: I feel that the politicians are in their own little bubble, their own little world. There's us working class and then

you've got them.

ELIZABETH MZIOUED, FOOD VENDOR: They discuss our lives. They set rules that are

unrealistic, and they don't have to live by them. They're never going to be with that money in their pocket.

TONY GEARY, RETAIL VENDOR: They're almost legalized crooks, politicians. They're allowed to get away with really whatever they want to.

MZIOUED: Who can really go against the big companies? I doubt even the government would.

UNIDENTIFIED MALE: I'm afraid there are no leaders today to lead people.


UNIDENITIFIED MALE: To inspire people.


JUAN CARLOA VAJA, BOLIVIAN TOURIST: We need more power for the people, because the middle class has been controlled by these people. So we need


MARANATA, STUDENT: The global solution actually is a mess. They think more of economical side, and they don't think about maybe the future of the


TANYA DANE, STUDENT: I don't put my hope in leaders of the world. And that's not where my hope lies, my hope actually is in Jesus Christ.

RHONDA MADEWELL, CHILDCARE AND RETAIL WORKER: Honestly, I don't look to government for change anymore. I think it's really just about people and,

you know, within your small community.

UNIDENTIFIED MALE: I have lived here my whole life. Yeah, I haven't lived very far. I'm not very worldly. Do the global leaders, do they affect me?

Do they impact my life? Are they representing me properly? I don't really think they represent me in any way, but that's not a bad thing, it's just

that my daily life goes on with our without them.

ANTHONY GARZA, ARCHITECT: The recession was a result of global policies, and I was hit hard by the recession. So, yes, I believe the impact of

global policies affects small business people like myself.

UNIDENITIFIED MALE: Do these meetings improve the state of the world? I think in

their minds it does, but not in my mind. I really don't think -- it has little or no impact on me. And it is kind of a shame that would have an

impact on me, to think people go meet in Lake Geneva, Switzerland and affect average Joe in Kenosha, Wisconsin, I don't want them to affect me.


ANDERSON: Change, challenges and above all common concerns, but crucially no agreement on how to tackle them. It's been a packed show this hour as

we look ahead to what awaits the world in 2017.

I'm Becky Anderson. That was Connect the World from the World Economic Forum in Davos. Thanks for watching.