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Trump Arrives in London Amid Political Storm Over Brexit; Trump Demands NATO Countries Double Defense Spending; Croatia Celebrates Its First World Cup Final; It's a Bird, it's a Plane...It's "Trump Baby"; Some Signs of Support for Trump Amid Opposition; Trump and Putin to Meet in Finland on Monday. Aired 11a-12n ET

Aired July 12, 2018 - 11:00   ET

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


[11:00:00] BECKY ANDERSON, CNN HOST: Very old, really complicated, and desperate need of some work. Never mind Big Ben, that's just the politics

around here. It's 4:00 p.m. in London. It is 11:00 a.m. in Washington. I'm Becky Anderson. Welcome to what is a special edition of our show. We are

here connecting your world from London this hour.

Well, the U.S. President, Donald Trump, is now on part two of his European tour after a dramatic exit from the NATO summit in Brussels. We'll bring

you all the highlights from his freewheeling news conference where he claimed victory after crisis, talks on defense spending.

But we begin here in Britain or as Mr. Trump calls it a hot spot. He flew directly into a political storm with Theresa May's government in crisis

over Brexit. Mr. Trump says he has no message on that front, but we'll see if that changes as he meets with the Prime Minister today. We are expecting

mass protests during his visit. But he's shrugging that office saying people in the U.K. like him a lot and agree with him on immigration.

Well, let's take you to all the action. Our Nick Paton Walsh is outside the U.S. ambassador's residence in London where President Trump is staying.

Christiane Amanpour is here with me just across the river from Parliament. And Nic Robertson is back at NATO headquarters in Brussels. And Nick, let's

start with you, Nick Payton Walsh outside the U.S. ambassador's residence in Regents Park just a mile or so away from where we are here. And we know

that protesters are being kept away from the residence. We know that securities are tight. What have we heard from the U.S. President at this

point? He's been on the ground, for what, an hour and a half, two hours at this point?

NICK PAYTON WALSH, CNN, SENIOR INTERNATIONAL CORRESPONDENT: Yes, he's not spoken since his arrival and we've seen two osprey military style that were

painted in green colors. Aircraft land here and what looked like possibly two American helicopters, one of which likely carried the U.S. commander in

chief himself land about an hour and a half ago. Now, the first three, four maybe six protesters have gathered just over here. Incredibly quiet.

Holding up signs saying, walk out against Trump and the Tories, the British Conservative Party. And one man holding up a sign saying, where do I start?

And I think to some degree that sums up a lot of this U.K. capital city's response to Donald Trump.

He says the British people, quote, like me a lot. But frankly opinion polls suggest one in ten approve of the job he's doing as U.S. president. Two

thirds strongly disapprove it. This really the multicultural cosmopolitan heart of the United Kingdom. A country itself because of the Brexit vote

many say fueled by immigration issues that too, perhaps that's Donald Trump's rise.

But he flies in to a hot spot not really because of the turmoil that Theresa May has thus far reasonably, well, survived in terms of her

decisions around the U.K. leaving the EU in Brexit. The hot spot is really the protests that we'll see moving ahead now. And there should be more

people arriving here at the U.S. ambassador's residence. This is the only part of central London that he's going to grace with his presence. He's

been very carefully kept away from Parliament, from the usual Royal institutions that would accompany a state visit. He's instead is on a

working visit. He will be here for a matter of hours more and then fly to the Blenheim Palace, the birth place of one of his it seems heroes, Winston

Churchill. Where he'll meet Theresa May and her husband. And then Sandhurst on Friday and Chequers too, before he's going to play golf later on Friday.

It's tomorrow though that the major protests will get under way. The capital not under gridlock or lockdown because of the U.S. President being

here, but because of protests about him being here. A substantial difference where the central streets may see as many as 50,000 plus people

here. But the scene right here now is one of intense security. We've seen a convoy of what looked like American vehicles rush in with intense security

as well, wasn't quite clear who was in that. But certainly, the hours here began with what looked like a party for embassy guests. They have begun to

leave and then they'll be some rest time here before he heads up to Blenheim Palace later on -- Becky.

ANDERSON: Nick Paton Walsh outside the U.S. ambassador residence describing the beginning of what is the second leg of the U.S. President's European

tour. The first of course was the NATO summit where he claimed victory after crisis talks on defense spending. Christiane, is he right to claim a

victory?

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: Look, it's really interesting this whole thing that is going on.

[11:05:00] President Trump as we have seen has his own particular way of dealing with others. It is a lot of hectoring, it's a lot of saying because

I've done it, it is working. So, look, obviously the NATO allies have to pony up to the 2 percent, but

this has been on the cards since 2014 under President Obama and the target date is 2024. That is what they've agreed to. Despite President Trump

saying a whole number of different things in his press conference early this morning from Brussels before leaving to come here. You know, he

claimed that actually they'd agreed to pay even more. He demanded out of the blue yesterday that they up their spending to 4 percent. And that by

the way they needed to up the deadline to very soon rather than 2024. So, it's been incredibly difficult in that regard.

I did press the NATO Secretary General, Jens Stoltenberg, today several times, this is the last time I asked him, did the NATO allies actually

agree to more than their agreed 2 percent. This is what he said.

(BEGIN VIDEO CLIP)

AMANPOUR: You can just give me a yes or no. Have NATO allies agree to a 4 percent share of their GDP for military spending? Have they agreed to up it

from 2 percent to 4 percent?

JENS STOLTENBERG, NATO SECRETARY GENERAL: We have agreed to make good on the commitments we have made, meaning increasing the defense spending

substantially. And there is a new sense of urgency and new money is coming in just since Trump was here last time. More than $40 billion has come in

from European allies and Canada.

(END VIDEO CLIP)

AMANPOUR: So basically, they have agreed to stick to their commitments of 2014 which is the 2 percent. But it is happening. And the President has

been hectoring them, but it is actually happening. 100 percent of NATO allies are upping their spending. 100 percent of them. Jen Stoltenberg

before President Trump's visit reminded everybody that collectively NATO spending has gone up 5.2 percent.

I think the big picture though, because this is kind of small picture although it is President Trump's bugaboo, this transactional nature. The

big picture is does President Trump come and go leaving the NATO alliance united strong and tough, or putting one more chink in that Western

alliance.

ANDERSON: And what's the answer?

AMANPOUR: Well, that's a very good question. You know, he sort of tried to have it both ways at the end of his press conference. On the one hand we're

strong, we're united, NATO is big and better than ever. On the other hand, you know, still these arguments with the vital allies.

ANDERSON: Because a weaker NATO would suit the man that he will meet on Monday in Helsinki.

AMANPOUR: That's right.

ANDERSON: Down to the ground. What is it? That being, Vladimir Putin.

AMANPOUR: Yes, that has been Vladimir Putin's dream-o-vision in geopolitical affairs since he came to office. Weaken NATO, weaken the

Western alliance. And he has never had such opportunity as under the current U.S. President.

ANDERSON: The alternative to allies upping their spending, Christiane, President Trump said would be for the U.S. to pull out of the NATO

alliance. Were that to happen, what would happen?

AMANPOUR: I don't think it's possible. There would be no NATO without the United States. If that was to happen, the entire, you know, Western

democratic military security complex and operation would have to be revisited. It was the United States in 1949, Harry Truman, who signed this

into operation. And it has kept the peace for 70 years. And of course, as we all keep saying -- because it's important -- NATO's famous collective

defense article, its provision, was only enacted one time and that was after 9/11 on behalf of the United States. So, NATO being there, it's

cheaper to have NATO to stop wars than it is to, you know, each country has to fight their own wars and try to manage things themselves.

ANDERSON: That's certainly the line that NATO members as part of the alliance would use, one assumes. Let's get to Brussels where Nic Robertson

is standing by. Nic, the U.S. President arrived, his opening salvo, his volley as it were, was criticism, sharp criticism of the Germans. He then

went on as we've been discussing to ultimately claim victory in ensuring that defense spending is increased. Despite the fact that as Christiane was

explaining, it was already increasing and has been increasing since 2014. What's the atmosphere like amongst members where you are post-this U.S.

President trip?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, look, they all knew, all the United States NATO allies knew that they were going to come

into a pretty rough and tumble situation with President Trump because of his unpredictable nature. They didn't know how it was going to go. I talked

to a diplomat this morning and he told me that the session yesterday had been, you know, rough, rocky, tough. At times heated. But not worse than

people had expected. There was a sense of there was sort of a bullet dodged and then the bullet came back round again this morning with this emergency

session.

[11:10:00] And I think, you know, Christiane had the opportunity there to very precisely and forensically ask Jen Stoltenberg the U.N. Secretary

General precisely about what President Trump said he'd got out of it. And it really feels -- you get the sense. And although there'd been push back

from the different leaders here, push back from Emmanuel Macron, push back from Justin Trudeau, the Canadian Prime Minister, push back as well from

Angela Merkel, the German Chancellor. And Jen Stoltenberg's framing. There's a sense here that, you know, President Trump has been, you know,

given, accredited a sort of a diplomatic win. He's done what some nations wanted the United States to do, which was really give some oomph to NATO,

to stick its hands deeper in its pockets. The way that he's done it, the bombastic way, the way that it's thrown everything off schedule today, and

that perhaps did catch people a little bit by surprise. But let's go back to what Donald Trump said, this is his framing of how he thinks he's

improved things.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: If you consider putting up tremendously additional funds at a level that nobody's ever seen before, I

don't think that's helping Russia. I think that NATO is much stronger now than it was two days ago. I think that NATO was not doing what they were

supposed to be doing, a lot of the countries. And we were doing much more than we should have been doing. Frankly, we were carrying too much of a

burden.

(END VIDEO CLIP)

ROBERTSON: So, this issue of much stronger to your point, to Christiane's point, I talked with the Estonian Prime Minister here, the Latvian Foreign

Minister too, the sort of Baltic states right up there, feeling very much in the front lines on the eastern edge of NATO if you will, close to

Russia. Feel very much on the frontline with the potential of a Russia threat.

They said to me, look, what really counts is what President Trump says when he gets to that meeting on Monday, in Helsinki, with President Putin. If

he's tough, if he delivers a strong message about the transgressions, illegal annexation of Crimea, you go at putting his troops into Ukraine.

All these issues, if he is tough there, then we are going to feel good about it. So that's going to be, to Christiane's point, it's the bigger

picture here. That's where his NATO allies might feel that his words about being stronger actually come to bear.

ANDERSON: Well, before that meeting -- thank you, Nic. Before that meeting in Helsinki 36 hours or so on the ground here in the U.K. What he didn't

do, Christiane, was I guess blow up the NATO meeting as he had the G7 meeting only a month or so ago. And so, to what happens here. What -- this

is a difficult time. It's been a difficult week for the U.K. Prime Minister. This is a country that the U.S. president has described on his

way here as a in turmoil, a hotspot. What can the two get out of what is this working visit?

AMANPOUR: Look, it's difficult. It is not a state visit as the President wanted, it's a working visit or even different, you know, the nomenclature

around it -- I'm not quite sure what it is. But clearly, the protests have worked, the threats of protest. The President will not be in London. That's

where the protests will be surrounding here including above parliament with that big blimp were going to see.

The truth of the matter is that the United Kingdom and the United States have an important relationship. And others have said, and many have said

that no matter what you might think of this particular U.S. President, his policies, we have a much longer-term view and necessity for the

relationship between the U.K. and the U.S. They've need that all the time. It's been very shoulder to shoulder throughout the history. Now obviously

the current political leadership want it even more. Because they think they're going to have to rely on, you know, special trade deals or

independent bilateral trade deals that are different than what they had when they were part of the EU.

So, for every reason security, trade and others, intelligence sharing, they need this relationship and it goes beyond just one President. But the

protests are going to be not just about the President coming here. From what we understand, it's about his immigration policy. It's about his, you

know, what they consider his policy of misogyny and sexism when it comes to women. There is going to be a women's march. So, a number of views are

going to be put forth here. And yes of course if he is listening to Fox News or if he's listening to Piers Morgan, our old colleague, or even Nigel

Farage or Boris Johnson, those people do like him. You know, and many including President Obama have said that for instance Boris Johnson is

Britain's Donald Trump.

ANDERSON: On his way here in what was a pretty freewheeling news conference as we've described it, he was asked about trip here.

[11:15:00] He said he had no message on Brexit. But he did say that he felt that British people stand shoulder to shoulder with him, and I'm

paraphrasing, on the issue of immigration. So, it's important to point out that there will be a number of protests against his position on immigration

while he is here.

I want our viewers just to see this cartoon today in the "Telegraph" as play on sorts on all the protests that we are expecting against Donald

Trump. It shows as rather frail Theresa May shaking hands with a confident looking Donald Trump who says, I get the impression some folks don't want

you here.

AMANPOUR: Well, look, it's funny. Right? Because it's a mirror image of what's going on. But let's face it, it's not that funny. Because he has

actually tweeted against Theresa May in the past, much the same as he has tweeted against Angela Merkel. Let's not avoid the irony that these are two

women leader. Right? In any event, we skate over that one. But he has done things that this current Prime Minister has been upset about. Retweeted,

for instance, that very far right wing, racist, fascist group that he retweeted and then said, I don't know anything about supporting Brexit.

We understand from the French that he even suggested to President Macron why don't you pull out of the EU too. We know that his chief aide who is

here, he's not his current chief aide, but partner in arms Steve Bannon. He is all about supporting the much more extremist in the political spectrum.

Whether it's here, whether it's in France, whether it's in Germany, Italy, around Europe. In this very sort of nationalistic, populist, anti-EU

politics that they have. So that is an actual agenda for this current administration.

ANDERSON: At the heart of which in many of these movements is an anti- immigration position.

AMANPOUR: That's right.

ANDERSON: Christiane, thank you for that. Nick Paton Walsh is outside the residence. Whereas you were explaining to us earlier, Nick, the U.S.

President will be for a couple of hours before being feted tonight. I think we should describe this or we can describe this at Blenheim Palace with a

gala supper. He will meet the U.K. Prime Minister, Theresa May, and her husband as I understand it. What else do we know about what happens next?

WALSH: As you say the hours ahead here may see protests pick up at the U.S. ambassador residence on the edge of Regents Park. But you have to point out

how weird it feels, frankly, here that a part of the green areas of London's parks have been kind of fenced off to allow the President to be

here untroubled by the tens of thousands of protesters that will be in the center of the city. Where you would normally expect him to spend so much

more of his time.

But yes, tomorrow he will head off to Sandhurst, the military Academy, where he will see a joints display of U.S./U.K. military expertise and then

Chequers. Tonight, he'll be at Blenheim Palace, the birth place of Sir Winston Churchill. The man whose bust he famously put back in the oval

office. But we also are learning too, that when he landed here in Winfield House, it was to the tune of the Beatles, "We Can Work It Out." We've heard

over songs being played over the hours before hand as well. Sort of a party atmosphere they were trying to generate. I'm sure there are many in

Britain, frankly, who wish Trump would simply just let it be. But a potentially tempestuous hours on the streets here certainly ahead -- Becky.

ANDERSON: Nick Paton Walsh outside the U.S. ambassador's residence in London. Well, the U.S. Embassy is warning Americans living in the U.K. to

keep a low profile during the President's four-day trip. There are some concerns that some of the protests against Mr. Trump could turn violent.

This statement on the embassy website warns U.S. citizens to be aware of their surroundings and exercise caution.

Well, joining me now is Kate Andrews. She's the U.S. political columnist for the British newspaper, "City A.M." amongst other things. And the former

spokeswoman for Republicans overseas U.K. From the U.S. perspective, what will success look like for the U.S. President on this trip?

KATE ANDREWS, NEWS EDITOR, INSTITUTE OF ECONOMIC AFFAIRS: Well, he's certainly going to be interested in talking about trade and talking about

defense. I think those will be the two main issues. On the former, it's still early days. The U.K. is not yet able to secure free trade deals

around the world. There are questions around the way Brexit negotiations are going. When they might be possible, if it will be possible. But

certainly, the President has already extended a hand and said that the U.K. will not be at the back of queue, but at the front of the queue for a free

trade agreement, and it makes sense. These two countries are heavily involved when it comes to trade. The U.K. and U.S. are the biggest

investors in to each other when it comes to putting money into business from outside countries. So, there's a lot that can be gleaned there and a

lot to be piled on top of it.

ANDERSON: And you're right to point out that there's a long road ahead. A road that could and at a time where the U.S. President, currently Donald

Trump may not be president by that stage. Because of course, today is the day that we had the white paper delivered by Theresa May on her exit plan.

[11:20:00] A lot as you say to get through. Including the fact that this plan is the way that Britain exits the EU ultimately. It includes a customs

union for goods, part of the single market and therefore working out any unique bilateral trade deals will be tough. But you're also right to point

out that they will be talking defense and defense spending. And Downing Street agreeing with and supporting Donald Trump's stance that defense

spending specifically for NATO needs to be up and he will claim a victory, coming out of this NATO summit, won't he.

ANDREWS: I think he will. And one of the reasons he can claim victory is I think it's one of the few issues -- regardless of what you think of his

other very questionable comments -- that he seems to talk a lot of sense. It is not fair that the U.S. props up with cash and support an alliance

that is supposed to incorporate so many other countries. And I think looking at countries like Germany and Italy in particular, it feels like

they've been riding on the USA. So, I think he's got some points. Obviously, the way he's negotiating this, calling for 4 percent of spending

to go into NATO, it seems like something he has taken out of the "Art of the Deal." I don't think it's going to work politically. But he is making a

legitimate point. And for Germany to say we can't get to 2 percent of spending until 2030 is too far down the line. It is not that Germany owes

the U.K. money it's that -- sorry, that Germany owe U.S. money, is that the U.S. could be investing that money in roads, infrastructure, welfare, the

way that Germany does.

ANDERSON: Donald Trump though, very briefly, will conflate what is spent on NATO by its members with the sort of trade surplus, for example, that he

sees the EU having with the U.S.

ANDREWS: Wrongly so I think. But he does do that.

ANDERSON: Thank you.

ANDREWS: Thanks for having me.

ANDERSON: You can check out the latest from President Trump's controversial trip to the U.K. online and catch up on all the headlines from the NATO

Summit in Brussels. All of that is at CNN.com. You know how to find that.

And speaking of NATO, President Trump warns he could leave the organization if he wanted to. But it not necessary. We've got the latest from Brussels

coming up again in about 20 minutes time.

And in World Cup action, Croatia dashes England's dreams and prepares to square up to France in the final. We have the hopes and heartbreak up next.

(COMMERCIAL BREAK)

ANDERSON: This is the moment it all changed for Croatia. Elation and jubilation as the whistle blew in Moscow you on football history itself.

[11:25:01] There was seas of color and clears through the streets as the small Eastern European country beating England 2-1. Qualifying for its

first ever Let's put it into World Cup final. Well, let's put this into perspective shall we. This would mean Croatia is about to be the smallest

country to play a World Cup final since Uruguay won in 1950. Croatia's population just above 4 million compared to upcoming rival's France's 64

million.

But of course, while Croatia and France look forward to the finals, it was heartbreak and despair for the three lions as the World Cup won't be coming

home to England after all. Well, let's break all of this down and look forward to the reason behind all of this. The World Cup final where Croatia

take on football of France on Sunday. CNN's Alex Thomas is in the city where that battle will go down. He's live in Moscow's iconic Red Square.

And I know you hate that coming home, it's coming home line, so you for one I know won't be delighted about the result, but for one you'll be delighted

that that phrase will have had its day -- Alex.

ALEX THOMAS, CNN WORLD SPORT: Yes, Becky, and credits to England that they tried so hard and for so long to keep a lid on those expectations. And

there had certainly been a different post defeat feel about this England loss having seen so many in the past. They haven't gone from hero to zeros

overnight. People understanding and probably did as well as they could at this World Cup. But nonetheless before their match with Croatia, there was

that old feeling that maybe the stars were lining. England they're going to conquer the football world again. When clearly, they are not able to. And

the reason is very simple, Croatia was a better football team on the night.

And they coupled that talent, the likes of Luka Modric, their captain player from Real Madrid, Ivan Rakitic, one of his fellow midfielder who

plays for Barcelona, you've got Juventus striker, Mario Mandzukic, who's been to more than on Champions Leagues finals. Dejan Lovren who was also

this year's Champions Leagues final. So many players that play had very top clubs. They've gone down to talent, couple that with the kind of resilience

they've shown over three successive knockout games, Becky, where they've come from a goal down every single one of them and also had to play half an

hour of extra time. Although at least they didn't have a penalty shootout at the end of at this time against England. So, add all that up those extra

minutes on the pitch, they played a game more than France going into Sunday's final, which will be a huge task. But credit to Croatia

considering their tiny population and their resources compared to some of the larger football countries.

ANDERSON: Yes, absolutely. At Alex, good stuff, thank you very much indeed. Well in the heat of victorious uproar, ASP photographer, Yuri Cortez, could

not get any closer to the action. He was buried under the Croatian team as they celebrated their winning goal against England. The shots are

marvelous.

Just ahead, will the Trump baby balloon poke fun or further inflate the President's ego? We speak with one of its creators up next. Stay with us.

[11:30:00] (COMMERCIAL BREAK)

ANDERSON: Well, it is 4:30 p.m. in London for those of you who are just joining us, you are more than welcome. And a welcome for the U.S. President

Donald Trump from Theresa May this evening. The prime minister will welcome him to the U.K. He's arrived, he is staying at the U.S. ambassador's

residence just a mile or so from here. And will be feted tonight at a gala hosted by the prime minister.

And looking up at the sky over central London tomorrow people will be greeted with, well, this sight. Now, there is no mistaking this with

anything other than what it is. A giant orange Trump baby balloon. It stands a whole 6 meters high. It wears a diaper. Sports one of Donald

Trump's trade mark angry scowls and even clutches a smart phone in its tiny right hand.

Sheila Menon is with me. She is a spokesperson for the Trump baby balloon. I don't think I ever thought I would say that. A spokeswoman for the Trump

baby balloon. This is bound to annoy Mr. Trump. It has really angered his supporters. Some calling it embarrassing and silly. Some are calling it

insulting. What is the message behind the Trump baby?

SHEILA MENON, SPOKESWOMAN, "TRUMP BABY BALLOON": I mean we are flying this tomorrow morning in Parliament Square Gardens because we know that it is a

humorous, satirical way of getting through to Trump because as robust as he seems to like to portray himself as, we know that he is very thick skinned

when it comes to being ridiculed and this is would be way is one way of getting through to him.

ANDERSON: So, what is the message?

MENON: This actually is about representing, having a go at Trump in protest of his policies, his hate-fueled policies. And politics that are having a

devastating impact on real lives. Not just in the U.S., but in the U.K. and all over the world.

ANDERSON: There is also a petition circulating as I understand it asking for Trump baby to fly over Turnberry Golf Course in Scotland where of

course the president is expected to play golf on Saturday. It does seem that police have said that won't be possible. Do you have a plan to fly

Trump baby anywhere else?

MENON: We have been raising money, there was a crowd funder, we raised way more than our target and we will use that money to take Trump on tour to

basically follow Trump around with his visits and hopefully we can take the baby with us.

ANDERSON: Who created this?

MENON: A team of us who are behind this. There is a guy called Leo Murray who had the idea. You know, Trump has an inflated ego. He is very thin

skinned. And he likes to throw his toys -- so that is where the idea came from. A guy called Matt Bonner designed it and here we have this thing that

now has a life of its own.

ANDERSON: Some people are welcoming the U.S. President with open arms. In fact, this London pub renamed itself in honor of his visit. Once known as

the Jamison it is now called the Trump Arms. Will you be drinking there?

[11:35:00] MENON: I don't know if that will be a pub I will be frequenting. Probably not. But tomorrow, yes, we have a six-meter-high one we are flying

in the morning and in the afternoon, we have a 3-meter-high one which will be mingling with the protesters, hundreds of thousands of people who are

going to be gathering in London to protest Trump's visit.

ANDERSON: Whether he sees them or not is a question that remains unanswered at present because his schedule is tending to keep him outside of central

London. But protests are planned and supposed to be huge. Sheila, thank you. Sheila Menon is a spokesperson for the Trump baby balloon joining us

here on CNN.

Just up the road from here, let's get the view now from 10 Downing Street. We are joined as I understand it by CNN's Sam Kiley. Sam, as far as we

understand, what is it that the U.K. is hoping to get out of this working visit with the U.S. President?

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Prestige I think is absolutely key to the May government at the moment. But that is going to be

hard to foster. On top of that of course in the longer term with the Brexit negotiations, if there is a hard or indeed a soft Brexit, there is an awful

lot of hope among the Brexiteers that the British economy will be somehow propped up by what they hope could be a free trade deal with the United

States given the context of the Trump administration's trade wars with China and the European Union, that may be a distant prospect.

Not least because Mr. Trump has made a made it abundantly clear that there is almost a sense of amusement for him over the Brexit turmoil as he put it

in the British government. He made that remark of course just before he left Washington and he repeated it just today in Brussels. This is what he

said.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I said I'm going to a few hot spots. We have NATO, we have the U.K. and then we have Putin. Putin may be

the easiest of them all. You never know. But I'm going to a pretty hot spot now with a lot of resignations.

(END VIDEO CLIP)

KILEY: A lot of resignations of course among them Boris Johnson and David Davis the foreign secretary and lead Brexit negotiator. Respectively, both

very senior cabinet ministers who have since been replaced. But diplomatically, Becky, that is not the language that one would expect from

a visiting President, although it is the sort of language that people have come to expect from Donald Trump. On top of that of course he is on this

official but nonstate visit being moved around the country so that he can avoid the much-promised demonstrations against his visit that are building

today outside Winfield House, the U.S. ambassador's residence in Regents Parkway

where he will be staying. But we're anticipating much bigger demonstrations tomorrow. And for that reason, there will be no motorcades through the

streets of London, Becky.

ANDERSON: Sam Kiley outside Number 10, that being the prime minister's residence. We are coming to you live from London today where U.S. President

Donald Trump is going to spend the night arriving fresh from a NATO summit packed with tough messaging and some confusing claims. Details on that are

just ahead.

[11:40:00] (COMMERCIAL BREAK)

ANDERSON:

(BEGIN VIDEO CLIP)

TRUMP: You can ask anybody at that meeting, they are really liking what happened over the last two days. There is a great, great spirit leaving

that room.

(END VIDEO CLIP)

ANDERSON: The U.S. President there calling it a great spirit at the NATO summit. But as we have heard throughout this hour there are great

differences as well in particular on the issue of defense spending. Mr. Trump is now in London he touched down just a couple of hours ago, and he

is at a Winfield House as we speak, the residence of the U.S. ambassador here, starting a four day visit to the country whose alliance with the U.S.

is known as a special relationship. Special as we know is a relative term. Michael

Chalmers is back with me, he is deputy director general of Royal United Services Institute. And recently been crunching the numbers on NATO defense

spending. In what was a free-wheeling news conference earlier on today, the U.S. President claiming a victory by persuading NATO members to up their

spending. He says significantly. What do we know?

MICHAEL CHALMERS, DEPUTY DIRECTOR GENERAL, ROYAL UNITED SERVICES INSTITUTE: We know yesterday NATO put out a communique essentially reiterating the

pledges on spending they made in 2014 which allowed for a significant increase and there has been a significant increase over the last four

years.

ANDERSON: A victory for Donald Trump?

CHALMERS: It's a victory for Russia because it is a response to Russia primarily. It is also a response to American pressure from President Obama

and President Trump. President Trump has contributed to that pressure, I don't think Trump is the main cause of it.

ANDERSON: Mr. Trump did start the NATO summit with a salvo against one of his key European allies, let's just have a listen on to this.

(BEGIN VIDEO CLIP)

TRUMP: Germany as far as I'm concerned is captive to Russia because it is getting so much of its energy from Russia. We have to talk about the

billions and billions of dollars that is being paid to the country that we're supposed to be protecting you against.

(END VIDEO CLIP)

ANDERSON: You just described Donald Trump's victory as being a victory for President Putin. I wonder whether you think Donald Trump's attempt to set

up this narrative ahead of his meeting with Putin on Monday, I'm not soft on Russia, you are, as it were to other European and NATO allies, to

deflect criticism some might say from his own approach to Russia.

CHALMERS: I think there is an element of that, it's about domestic politics, but actually I think it is more worrying than that. Because this

is consistent with what Donald Trump has said for decades in terms of his belief that America's main Democratic allies are free riding. They are

exploiting the United States, a position no previous President has made. It is deeply worrying because it suggests his whole approach to his European

allies is one in which he actually doesn't see his allies in the way that has been in the past.

And I think the European governments are struggling to know what works. If they understood that Donald Trump had specific demands which if met he

would be satisfied, that would be would one thing. But the 4 percent demand is another example of the way in which he is so unpredictable. I think

quite a number of leaders are saying what is the point, we will never satisfy him. Because we don't really know what he wants.

ANDERSON: The disrupter in chief as some have called him, his style very, very different we know from those that have come before him. He wants a

one-on-one meeting with Vladimir Putin in Helsinki next week when he ran his one on one meeting for example with the North Korean leader recently,

there was nobody else in the room. Interestingly, I just want to get your take on this. The congressional delegation that has been out in Russia over

the past week or so, with some sage advice it seems for the U.S. President. Don't go in alone and go in prepared for the meeting with Vladimir Putin.

Where do you think -- if you look through the prism of the U.S. and then the prism of Moscow, do they stack up together at this point? Or this

meeting?

[11:45:00] CHALMERS: One of President Putin's key objectives will be to split the alliance. He has seen the NATO summit. He sees how divided

President Trump is from his European allies. He will want to exploit that division any way he can. And what President Trump should have been doing in

Brussels and now in the U.K. is consulting his key allies about what his message will be to President Putin?

It is good that the two leaders are meeting. But Trump has to go into that as a representative of a big alliance. He should be there representing NATO

and the idea that he is going in and there is a lot of fear in European capitals that he will do some sort of deal over their heads without

consulting them which Europeans will have to live with the consequences.

ANDERSON: Like what? Just out of interest.

CHALMERS: For example, he could reduce the number of American military exercises in Europe in the way that he promised to the North Koreans

without consulting South Korea. The same thing could happen here.

ANDERSON: So, we know that there is some alarm in European capitals. Let's just take a look at some numbers here's on how people around the world

actually approve of American leadership. And in 2008, this is interesting, Bush was at 34 percent. 2017, Obama 48 percent. 2018, this is the number

for Trump. 30 percent. What should we make of that?

CHALMERS: I think European public opinion looks at Trump and it is partly about how he behaves domestically of course. Exploiting racial division and

so on. But I think in terms of international attitude, he is not treating his allies as friends with whom we can have legitimate differences and

arguments but in the end we're all in it together. As we have been since World War II. He is treating allies sometimes in a worse way than

competitor countries like Russia and China and that makes people very worried because the American security guarantee has been very important to

Europeans. But this also very important for America's superpower status, the United States would not be a superpower without allies.

ANDERSON: Michael Chalmers is from the Royal United Services Institute. Your insight and analysis has been valuable today, sir, thank you very

much, indeed. From hitting allies hard to sharing some surprising praise on a country he is embroiled in a trade war with, listen to what Mr. Trump had to say about

China.

(BEGIN VIDEO CLIP)

TRUMP: I have a great respect for their President as you know. President Xi spent two days there, was among the most magical two days I've ever lived.

And I think we're going to end up doing something very good with China. Right now, we're in a pretty nasty trade battle, but I think ultimately

that will work out.

(END VIDEO CLIP)

ANDERSON: Two of the most magical days that I have ever lived. Mr. Trump on China then. Live from London. For you still ahead, President Trump's slams

Germany for its reliance on Russian gas. Now Moscow hitting back calling Mr. Trump's criticisms and economic ploy. The perspective from Moscow is

next.

[11:50:00] (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: I'm very concerned with the pipeline. I don't like the pipeline. I say how do you have NATO and then you have somebody paying the people that

you are protecting against?

(END VIDEO CLIP)

ANDERSON: The U.S. President referring to the Nord Stream 2 gas pipeline, it is still under construction, but once completed, this pipeline will

transport natural gas from Russia into western Europe. It is said to be one of the longest offshore gas pipelines in the world stretching 1200

kilometers, enough gas will be transported to supply 26 million households.

CNN Money's emerging markets editor John Defterios, normally my colleague in Abu Dhabi, both of us here in London today. The U.S. President's

argument is that he cannot understand why for example the Germans will be made to look vulnerable with their dependence going forward on what would

be a critical gas supply from Russia. Is he right to have these concerns?

JOHN DEFTERIOS, CNN MONEY EMERGING MARKETS EDITOR: Well, this is as I've described it yesterday, but it's intensified in the last 24 hours. Really

nasty pipeline politics and is not surprising, Becky, because it is billions literally over decades and a long-term relationship that Russia

set up not only with Germany but with the European Union.

So, day one, Trump attacks the Nord Stream pipeline. Day two, Dmitry Peskov, spokesman for Vladimir Putin came out and said, what Trump is

trying to do is unfair competition into the European Union market. Said he is trying to force natural gas from the United States LNG on to the

European market.

Let's bring up the graphic again of Nord Stream. What is interesting about this is it bypasses Ukraine entirely. It is Russia directly to northern

Germany and then distributed to the rest of the European Union. This is the second pipeline. This is built to last as a relationship for decades. As

Gazprom the major gas producer in Russia is the major shareholder. But five other European energy companies.

So of course, they are trying to lock it in forever. But some of the complaints we've heard like Donald Trump suggesting in a that Germany is

already taking 70 percent of its natural gas from Russia is not the case. We have a graphic breaking it down here. It is Russia the number one

supplier to Germany at 35 percent, Norway is 34 percent and then it drops down to the Netherlands. The challenge will be that the production in the

Netherlands is dropping quickly, but the demand for gas is going up and Americans want to fill that void.

This is the reality here. They have two export terminal, adding four more. By 2020, the U.S. wants to be in the ranks of Qatar and Australia and

compete against Russia. So, this is really a nasty game because really European Union doesn't have any another choice but to bring in natural gas

from Russia. But how dominant of a player is the question. And that is the challenge from Donald Trump.

ANDERSON: And going forward we've seen enough of Donald Trump to know that if you did nothing but see the world through the prism of energy politics,

you would probably be able to read the tea leaves fairly well about what happens next. We heard about the Trump baby balloon earlier. There is also

a push to get this song back on the charts here in the U.K. Have a listen.

(BEGIN VIDEO CLIP)

GREEN DAY: Don't want to be an American idiot, don't want to be on the new media, can you hear that sound of hysteria?

(END VIDEO CLIP)

ANDERSON: Your view of Trump's status in the world. We've just been discussing that with the last guest.

DEFTERIOS: Well, he is a bully. Let's call it like it is. And I think it's very interesting that he challenges his allies first, particularly for a

second round with Angela Merkel here taking issue with the Nord Stream pipeline. Some would even question, OK, that was a structure from her

predecessor, Gerhard Schroeder. Dirty politics because they wanted to lock in Russia for years to come. But he challenges them on every front. We've

had the conversation before of him being a transactional President. I don't want to be cynical, but he is saying for the NATO allies to boost their

military spending. And then today at the press conference it came out, he says, if they want to order US military hardware we'll make sure that the

financing comes in because it is in a slow growth environment for ten years.

[11:55:00] They don't have extra budget for military spending. And he wants that, and he wants to lock in transactionally LNG into the European market.

This is a market better than half a billion consumers. So that is the strategy. Below all this noise, he has priorities and it is representing

U.S. business. But he is not very transparent about it. He uses a geopolitical issue and Russia's dominance and says at the end of the day we

want LNG into Europe at the same time.

ANDERSON: I almost beg to differ with you on whether he is being transparent or not about this. I would say absolutely clear. But I get your

point.

DEFTERIOS: He starts on the geopolitical and coming back into the business underneath. Let's put it that way.

ANDERSON: John Defterios in the house. He's only been in London for a few hours. Not John. The U.S. president. And on the road for a few days. But he

is already up turning conventions and causing global stirs. Tomorrow we are expecting to see huge protests in the city against Donald Trump and of

course that giant baby Trump balloon will be in the air above the Houses of Parliament behind me.

CNN's coverage of Mr. Trump's European tour goes on right after this. I'll be back along following it all for you tomorrow from right here in London.

So, join us for that. And you stay with CNN for the hours to come. I am Becky Anderson, that was CONNECT THE WORLD, thank you for watching.

END