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Saudi Arabia Dismissing Reports of Critic's Murder; Pompeo Meets Kim Jong-un Conveys Trump Regards; President Trump Takes A Victory Lap; Fraud Trail Of Israeli PM's Wife Begins; "Going, Going, Gone!"Bansky Pranks Auction. Aired 11-12p ET

Aired October 07, 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 INTERNATIONAL ANCHOR: Six days and counting since a prominent Saudi journalist went missing in Turkey. Jamal Khashoggi

hasn't been seen since an appointment at his country's consulate in Istanbul. what we know and don't know is ahead. Also, this hour.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: And before you today on the heels of a tremendous victory for our nation.

(END VIDEO CLIP)

ANDERSON: Well, a bitter confirmation battle that polarized the nation. How the Kavanaugh saga may impact the U.S. midterms and why that matters.

Plus, going, going, gone. A British artist takes auctioneering lingo a little too seriously. That story for you this hour.

Hello! You're watching CONNECT THE WORLD. I'm Becky Anderson live for you from Abu Dhabi where it's after 7:00 in the evening. This hour, the

mysterious disappearance of one man exposing just how fragile and on edge the architecture of this region's conflict's geopolitics can really be.

Here is what we know for sure. This extremely well known Saudi journalist, more importantly, critic Jamal Khashoggi was last seen going inside the

Saudi consulate in Istanbul in Turkey six days ago.

We know he hasn't been seen since. We now he went to get papers he needs to get married and we know before the disappearance, he was a prominent

critic of his country's rulers. You can see some of his headlines. He is zeroing in on the throne itself, a big no, no for Saudis. Now, what we

don't know, and that's pretty much everything else, reports from Reuters and the Washington Post have Turkish officials claiming Jamal was killed

inside this well-guarded consulate.

For the last hour, Turkey's president, well, tiptoeing around that being very careful to point out that he's still watching and waiting for more

information. Now, remember, there's a bigger picture here. Turkey backing Qatar, not the Saudis in the kingdom's blockade of the tiny peninsula last

summer. So things are already touching.

Meanwhile, the Saudi's dismissing any suggestion of their involvement as total and outrageous nonsense here, the consul general giving reporters,

looks around the consulate in what was slightly bizarre towards opening cover. He even -- filing cabinets approve that Khashoggi isn't anywhere to

be found there.

(BEGIN VIDEO CLIP)

MOHAMMAD AL-OTAIBI, CONSULATE GENERAL OF SAUDI ARABIA IN ISTANBUL (through translator): I would like to confirm that the citizen Jamal is not in the

consulate nor in the Kingdom of Saudi Arabia and. The consulate and embassy are looking to search for him and we're worried about his case.

(END VIDEO CLIP)

ANDERSON: Let's try and to connect the dots in on this with CNN Jomana Karadsheh who is on the ground at the heart of this mystery for us right

outside the Saudi consulate in Istanbul. And Jomana, we have had fresh comments from the Turkish president. What has he said at this point?

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, you know, Becky, we waited all day to hear from President Erdogan. Everyone was hoping to get some

clarity on the comments that you mentioned earlier. These quotes from these unidentified Turkish officials quoted by the Washington Post and the

Reuters News Agency saying that he -- that Jamal Khashoggi was killed inside the consulate, something we haven't been able to confirm. And we

heard President Erdogan. He gave an entire speech, Becky. This was preplanned. He went into so many different political issues, the economy

in Turkey, did not mention this subject at all.

But afterwards, he was asked by reporters about this and he said was there's an ongoing, everything is being inspected. Security cameras -- I

have to mention, Becky, outside the consulate here, there is a large number of security cameras outside the consulate, so he's saying everything is

being inspected including arrivals and departures from the airports. This is something we heard from Turkish state media saying that at the time of

Jamal Khashoggi's visit into the consulate, a group of 15 Saudis had arrived in the country that day and left also on that same day.

So Erdogan saying that everything is being looked at and they have to wait and see what the outcome of this investigation is. But I have to say he

did sound a bit more hopeful, you know, than these reports we heard earlier in the day indicating that Jamal Khashoggi may have been killed inside the

consulate. Becky?

[11:05:4] ANDERSON: From -- sources of course reportedly not authorized to comment so let's wait as you rightly point out to find out whether we can

get anything concrete on this. As we do, let me broaden this out even more. As part of what he said today, Mr. Erdogan also saying this. Let me

quote to the letter here. People who support freedoms and freedom of expression will not let this go. I am sure they will follow this up. I am

following it up as the President of the Turkish Republic, I am chasing.

Now, his critics quite frankly will see that statement is dripping with irony as President Erdogan often criticized for throwing his critics pretty

much behind bars, using a lot of times to settled political scores. Thoughts on that?

KARADSHEH: Well, you know, some people have been saying this, Becky, over the past couple of days and also you know, these theories of you know, why

aren't we seeing more action from Turkey, why aren't they moving faster on this? But you know, speaking to several people who have been close to this

case including members of the Turkish Arab Press Association who knew Khashoggi and who are close to the government too, they feel that these are

two really not very linked issues right now. This is a very critical issue also for Turkey on several reasons.

You're talking here while this incident may have taken place if it did inside sovereign territory inside the embassy of the consulate of a country

and mission of this country here. This is still taking place in Turkey and this is something that could be seen as encroaching on this country's

sovereignty. And also you know, Turkey does not want to be looking you know, like it can't protect people inside Turkey.

You know, we're not just talking about Jamal Khashoggi here, you have so many other members of opposition groups from other countries whether we're

talking about you know, people from Libya, from Yemen, from Syria, and other countries who have chosen turkey as their safe haven and now they

actually feel quite threatened and quite terrified as some have mentioned over the past 48 hours after these reports have emerged. So I think Turkey

has a lot here you know, at stake to try and make sure that it you know, does what it has to do to clarify what did take place at this consulate.

ANDERSON: OK. So many, many more questions than answers at this point but Jomana, thank you. Right now, U.S. Secretary of State Mike Pompeo is in

South Korea fresh off his fourth trip to North Korea. Earlier Mr. Pompeo met and had lunch with the North Korean leader Kim Jong-un in Pyongyang.

Now, the two discussed denuclearization and another potential summit between Mr. Kim and U.S. President Donald Trump. Here's how America's top

diplomat thought that the talks went.

(BEGIN VIDEO CLIP)

MIKE POMPEO, UNITED STATES SECRETARY OF STATES: We had a good, productive conversation, and as President Trump has said, there are many steps along

the way, and we took one of them today with another step forward so I think this is I think a good outcome.

(END VIDEO CLIP)

ANDERSON: Well, now the U.S. official said the meeting was well better than last time but added it's going to be a long haul. CNN's Alexandra

Field following the diplomatic developments for you now from Seoul.

ALEXANDRA FIELD, CNN INTERNATIONAL CORRESPONDENT: Becky, it was a two-hour meeting behind closed doors for Kim Jong-un, the North Korean dictator and

the U.S. Secretary of State Mike Pompeo. Pompeo flew immediately to South Korea following his time in Pyongyang to debrief the South Korean President

Moon Jae-in. The Blue House here in South Korea is now releasing more information about what was discussed in Pyongyang.

According to the Blue House, Kim Jong-un and Secretary Pompeo talked about working to make the next U.S.-North Korean summit happen as quickly as

possible. They also reportedly talked about steps that North Korea would take toward denuclearization, the issue of U.S. inspections and

corresponding measures that the United States could take. No word on what those measures or steps could be.

Of course, we haven't seen North Korea take any concrete steps toward denuclearization since the first U.S.-North Korean summit between President

Trump and Kim back in June in Singapore. But Secretary Pompeo is saying that today's conversation represented a step forward. He also tweeted

about a good visit to Pyongyang. And an official traveling with the Secretary said that this trip went better than the last one but that

there's still a long haul ahead.

This was the fourth visit for Pompeo to Pyongyang. He was last there in July. Shortly after he left North Korean state news characterized him as

having shown gangster-like behavior. That's a quote there, gangster-like behavior. He was also scheduled to travel to the North Korean capital back

in August. But at the last minute, President Trump scrapped that trip saying that talks with North Korea on the issue of denuclearization had not

shown enough progress.

Certainly, President Trump speaking about North Korea in a different tone in the last couple of weeks. He recently described the "very beautiful

letter that he had received from Kim Jong-un and he talked recently at a rally about how he and the North Korean dictator fell in love. After the South Korean President, he is saying that

he is hopeful that the next summit between the U.S. and North Korea will happen quickly.

Certainly, it's been South Korea's position that the best way forward is to keep the line of communication open between the U.S. and the North. Becky?

[11:10:38] ANDERSON: Alexander Field reporting for you. Still, to come tonight at this hour here on CONNECT THE WORLD, U.S. Republicans say a

victory lap led by President Trump as Judge Brett Kavanaugh takes his seat as Supreme Court Justice. The effect his confirmation could have on U.S.

Midterm elections up next.

(COMMERCIAL BREAK)

ANDERSON: Welcome back. It's 30 minutes past seven in Abu Dhabi. You're watching CONNECT THE WORLD -- excuse me -- from our Middle East

Broadcasting. Now it's a saga that is gripped and polarized the U.S. and indeed abroad. Now after a vicious confirmation battle, Judge Brett

Kavanaugh takes his seat as a Justice on the Supreme Court.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT, UNITED STATES: On this vote, the ayes are 50 the nays are 48. The nomination of Brett M. Kavanaugh of Maryland to be an

Associate Justice of the Supreme Court of the United States is confirmed.

(END VIDEO CLIP)

ANDERSON: Well, that vote (INAUDIBLE) ended a hearing process that the left the nation bitterly divided. President Trump's nominee Brett

Kavanaugh has been accused of sexual violence and allegation he violently denies. His margin of victory was the closest for a top court seat since

1881. With his family looking on, Kavanaugh was immediately sworn in taking both the constitutional oath and a judicial oath. Another

ceremonial swearing is expected later in the week.

The U.S. President celebrated Kavanaugh's confirmation by rallying his base in the state of Kansas. Sarah Westwood has more on Mr. Trump's victory gap

on all of this. Have a look at this.

(BEGIN VIDEOTAPE)

[11:15:10] SARAH WESTWOOD, CNN WHITE HOUSE REPORTER: Well, Justice Kavanaugh's confirmation was the first topic out of President Trump's mouth

during rally here in Topeka, Kansas. He commended the Republicans who refused to waver in their support of Kavanaugh in the face of what he

described as a Democratic plot to destroy his nominee. And he previewed something that might be central to his messaging during this packed

political schedule that he's keeping up over the next 30 days campaigning for Republicans across the country and that's using the bitter confirmation

battle in the Senate that Kavanaugh just endured as something to motivate Republican voters and as an example to warn Republicans of the consequences

of what might happen if Democrats take back control of the House and Congress which is a real possibility heading into November. Here's what

President Trump has to say about the midterms.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: You don't hand matches to an arsonist and you don't give power to an angry left-wing mob and that's what

they've become. The Democrats have become too extreme and too dangerous to govern. Republicans believe in the rule of law not the rule of the mob.

(END VIDEO CLIP)

WESTWOOD: Now, Trump said he been advised to cancel the rally here in Topeka due to historic events unfolding back home in Washington but Trump

said he couldn't miss a chance to campaign for gubernatorial candidate Kris Kobach and congressional candidate Steve Watkins, both Republicans running

in close races here in Kansas. Trump also went after potential 2020 candidates, the Democrats including Senators Cory Booker, Elizabeth Warren,

or Vice President Joe Biden, Senator Richard Blumenthal, but it was clear from the victory lap Trump took here tonight that he was eager to take

credit for salvaging the nomination of Brett Kavanaugh which at one point looked to be doomed in the Senate and he previewed a lot of what we'll hear

as Republicans close in on one month till the midterms. Sara Westwood, CNN Topeka, Kansas.

(END VIDEOTAPE)

ANDERSON: Well, meantime, thousands of people took to the streets to protest the judge's confirmation in several parts of the United States, the

biggest protest on these steps of the Supreme Court itself. Miguel Marquez was there and has his report.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT: So it was anger, tears, and defiance as Brett Kavanaugh was being confirmed in the Senate and then it

turned into civil disobedience. It's a pretty hairy moment here in front of Supreme Court. I'm going to show you some of what is happening here

now. Police officers from both the Supreme Court and the Capitol Police moving a barrier across the front area of the Supreme Court trying to move

everybody out after some tense moments.

The crowd that had been here much of the day moved up onto the steps and then right to the doors of the Supreme Court itself. They were pounding on

the doors. About 12 members of the Supreme Court Police formed a wall on the door keeping the protesters from getting to the doors. The point they

say is that their frustration with this nomination process, they want to make sure that Brett Kavanaugh who they believed was in there being sworn

in at the time the protest was happening actually heard their protest.

They also chanted we believe survivors as that swearing-in was going on. The other theme for the day and what protesters have been chanting we've

heard it on the Senate floor as well is that remember in November. They want to take the anger that they have here and turn it into votes on

November 6th. Miguel Marquez, CNN Washington.

(END VIDEOTAPE)

ANDERSON: Just how damaged is Brett Kavanaugh and will the damage that's been done to his reputation affect how he can act as a judge? And what

does this confirmation mean for Midterm elections? That's crucial. Those are just weeks away. Let's discuss this with CNN's Political Analyst

Julian Zelizer live in New York. Let's start with Kavanaugh himself. This process has been horrific, called a sham by the Democrats, a witch-hunt by

the right, Kavanaugh's reputation in shreds as are -- as is those of many others around this. Just how much damage has been done?

JULIAN ZELIZER, CNN POLITICAL ANALYST: Well, I think you can actually survive this in terms of his own trajectory once he's on the court. He's

on the court and he has a conservative majority now to work with. And while initially there might be some justices who are uneasy working with

them or uneasy forming voting alliances, I think in the end he will as he showed in his testimony governing or make judgments in the kind of way he

believes and the reputation really won't matter. This is now a conservative court. It's official and he will go -- and he will rule that

way.

[11:20:08] ANDERSON: All right. Well, and we're looking at this more conservative-leaning court now for possibly years to come. At Saturday

night's rally in Kansas, President Trump calling Senator Susan Collins incredible for her yes vote. Collins now facing fierce backlash from women

and political opponents. She explained her decision to CNN's Dana Bash. I want our viewers to hear this and then we'll discuss it.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R), MAINE: I found Dr. Ford's testimony to be heart wrenching, painful, compelling, and I believe that she believes what she

testified to. I don't think she was coming forth with a political motive, although I do not think that she was treated well by those who breached her

confidence. But we also had a case where Judge Kavanaugh came forward and said I'm 100 percent certain that this did not happen. So here you have

two people who are each 100 percent certain of what they're saying under pain of perjury. So then I had to look at the other evidence and was there

corroborating evidence and that's why I pushed hard for the FBI to do a supplemental background investigation.

DANA BASH, CNN ANCHOR: So do you still think it is possible that he did it, you just don't have the proof to back that up?

COLLINS: I do not believe that Brett Kavanaugh was her assailant.

(END VIDEO CLIP)

ANDERSON: It just reminds us what role she played in the past what ten days since we first heard from Dr. Ford with her allegations about sexual

assaults or allegations of sexual assault by Brett Kavanaugh when she was in her teens.

ZELIZER: Look, she was most to be the role of moderation and she certainly gave statements early on suggesting she wanted to hear the story, she

didn't want a very heated contentious process. But in the end, she went the Republican way. She supported only a very limited investigation that

ignored people who in the press were contradicting what the judge said, friends of his from college. And then, in the end, she didn't only deliver

a speech explaining her vote which would be affirmative, she really repeated a lot of the points that the Republican majority and President

Trump had been making.

So this doesn't sit well with many Americans who saw her as a you know, a voice of the center because at the end of this, she sounds like a voice of

the mainstream Republican Party.

ANDERSON: So the U.S. public have an opportunity to make that point in what are these midterms now just about a month away. A litmus test of

course for the likes of Susan Collins now, for Donald Trump, for the for the GOP and indeed for the Democrats. What's going to happen?

ZELIZER: Well, I suspect this might help the Republicans. I think in the House, the direction of the house might go the way it was always going to

go toward the Democrats although we'll see. But in the Senate, I think this might be the October surprise. I think the way the president and the

Republicans handled the confirmation might end up energizing Republicans who before were not that interested in these midterms, who were deflated

I'm not a lot of what was going on, now they have been given red meat and they are energized to go and make their point in the election. So the

Senate might actually stay in Republican hands as a result of how the Kavanaugh hearings went and that was certainly not expected.

ANDERSON: And Julian, received wisdom would suggest that you know, if that happens, that would happen without the Republican female vote but do you --

how energized do you think women across the board have been on the back of all of this and might there be some exaggeration as to exactly where all

women across America stand at this point.

ZELIZER: Right. I mean, we do have polls showing that suburban educated - - college-educated female voters have been energized before this. They're doubly energized as a result of this and they favor the Democrats. And

that's why in a lot of the races for the House of Representatives those might be the most decisive votes. But we also don't know how much will

partisanship outweigh gender. Meaning, how will some Republican women see this. They might see it through the lens of the red part of the map rather

than through gender and that could buffer some of the impact that these hearings have on the Republican Party.

[11:25:14] ANDERSON: Yes. That's fascinating. We wait to see 30 days and counting. I think it Tuesday, four weeks from Tuesday. Of course, it's

Sunday. Certainly, Sunday is still here in the Middle East at 7:25. Julian, thank you. Julian Zelizer out of New York for you where it is

11:25 in the morning live from Abu Dhabi.

You are watching CONNECT THE WORLD, I'm Becky Anderson. Coming up, a month then till countdown -- sorry, a month countdown until tough American

sanctions aim to shut Iran out of the world's markets. How countries are trying to save the Iran deal without the United States. That after this.

(COMMERCIAL BREAK)

ANDERSON: You're watching CNN. This is CONNECT THE WORLD. I'm Becky Anderson, welcome back. It's 7:30 here in Abu Dhabi. The Israeli Prime

Minister Benjamin Netanyahu is no stranger to scandal but now it's his wife he was going on trial. Sara Netanyahu appeared in court on Sunday facing

charges of fraud and breach of trust. CNN's Oren Liebermann has more after what is day one of her trial.

(BEGIN VIDEOTAPE)

[11:30:01] OREN LIEBERMANN, CNN CORRESPONDENT: Sara Netanyahu is the constant companion to her Prime Minister husband. Always by his side,

whether it's a first visit to India or welcoming close friends to Israel.

"The people of Israel love us unlike the media," she told the trustees. One half of the power couple in Israeli politics, Netanyahu's third wife

regularly hosts world leaders at the Prime Minister's residence in Jerusalem, always in the picture. This time, she has the headlines all to

herself. Her trial on charges of fraud and breach of trust now underway.

The trial focusing on the alleged misuse of taxpayer dollars at the couple's official residence. The case is all about catered meals.

Prosecutors say Sara Netanyahu ordered approximately $100,000 in meals and spent thousands of dollars more on high-end chefs, illegal under Israeli

law when there's already a chef in the residence.

She's maintained her innocence. Her lawyer called the indictment false and hallucinatory. "It's the first time in Israel and in the world that the

wife of a leader is put on trial for food entrees." Her legal team said in a statement, "There was no fraud, no breach of trust, or any other felony.

We're certain in the end that justice will speak. Truth and logic will prevail."

This case comes as her husband also faces serious allegations. Benjamin Netanyahu is a suspect in three separate criminal investigations. Police

say they have enough evidence to charge him with fraud, bribery, and breach of trust. He too has repeatedly insisted he's innocent. Often saying

there will be nothing because there is nothing.

In one of those cases, investigators have said Sara Netanyahu is also suspected of bribery. Her lawyers firing back, calling it an absurd

suspicion and saying, "These things never happened." Formal charges in all of these cases remain in the hands of Israel's Attorney General. For now,

it is Sara Netanyahu alone who is on trial. Oren Liebermann, CNN, Jerusalem.

(END VIDEOTAPE)

ANDERSON: Well, let's get you up to speed on some of the other stories that we're following. Few were right now, and at least, 10 people are dead

and 135 injured after a 5.9 earthquake rocked Northwestern Haiti on Saturday night. The president urging residents to keep calm, and crisis

cabinet has been organized to coordinate the emergency response there.

The International Police Organization, Interpol, is asking for clarification from China about the whereabouts of the agency's missing

president. Meng Hongwei was last heard from 11 days ago. The South China Morning Post, says he has been under investigation in China, and quote, a

source saying, he was taken away for questioning upon landing there.

A man known as Brazil's Trump is leading opinion polls as the country votes in a heated presidential election. Far-right candidate Jair Bolsonaro and

his chief rival Fernando Haddad, getting out early to cast their ballots. Bolsonaro began rising in the polls after an attack last month when he was

stabbed in the stomach.

And Cameroon's president, Paul Biya is expected to extend his 36th-year role in the country's election. The 85-year-old is one of Africa's

longest-serving leaders, but he's been accused of running a brutal regime. The election comes amid unrest and violence in English-speaking parts of

that country.

Then just under a month time, the United States, when it reimpose a series of tough economic sanctions on Iran. President Donald Trump announced

these sanctions in August as part of his campaign to levy his words maximum pressure on Iran's government. Now, Mr. Trump's ultimate goal to bring

Iran's leaders to the negotiating table, he says, for its controversial nuclear program.

Iran's supreme leader, says his country will "defeat the U.S. sanctions," but that will no doubt be a difficult task. Here's what the sanctions hit.

Iran's ability to buy American dollars, its trade and gold, and other precious metals. And transactions related to Iran's currency, the rial.

That making it incredibly hard for other countries to continue trade with Tehran. And as the clock ticks closer to November the 4th, when those

sanctions come back into effect, Iran's trading partners scrambling great ways to bypass. For more, emerging markets editor John Defterios has more.

(BEGIN VIDEOTAPE)

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: A historic moment after years of negotiations. Finally, a landmark agreement to curb Iran's nuclear

program. A deal the U.S. President Donald Trump calls one of the worst ever made.

Earlier this year, he fulfilled his campaign promise of withdrawing from the accord and re-imposing sanctions on Iran's struggling economy. With

the repeated message to those wanting to do business with the oil-rich country.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Any individual or entity who fails to comply with these sanctions will face severe consequences.

[11:35:01] DEFTERIOS: Despite the threats, the European Union is scrambling to keep the deal alive. They have reason to. E.U.-Iranian

trade is running at over $2 billion a month. Numbers that are now expected to fall. As Europe sees it without trade and investment, Iran has little

incentive to go along with any deal.

FEDERICA MOGHERINI, HIGH REPRESENTATIVE, FOREIGN AFFAIRS AND SECURITY POLICY, EUROPEAN UNION: We are putting in place mechanisms together with

the Europeans, but also with others from all over the world. That would guarantee that trade can continue.

DEFTERIOS: So, the block has proposed a new mechanism. A so-called special purpose vehicle which it hopes could be up and running before

November. It functions as a clearinghouse, facilitating trade with Iran in Euros. And crucially, allowing European companies and perhaps others to

legally trade with Iran without facing U.S. retaliatory sanctions.

But it may be too little too late. Several European heavyweights including Peugeot, Renault, and Airbus have already pulled out of Iran. And many

firms are reluctant to engage a business that puts them at odds with the U.S. Treasury Department including French oil giant, Total.

PATRICK POUYANNE, CHIEF EXECUTIVE OFFICER, TOTAL: I cannot run a global company like Total without any access to the U.S. banking system, our U.S.

investors. It's just a matter of fact, the world economy today is organized around a currency which is a dollar.

DEFTERIOS: Even Iran's president, Hassan Rouhani is doubtful about the plan's chances for success, despite Europe's good intentions.

HASSAN ROUHANI, PRESIDENT OF IRAN (through translator): The reality in a tangible fashion or expectations have not been met.

DEFTERIOS: A sentiment shared by many multinationals who by all accounts will be very reluctant to jeopardize access to the world's biggest economy,

the United States, to plant a flag in the Iranian market.

(END VIDEOTAPE)

ANDERSON: Well, John Defterios is with me and now in Abu Dhabi. The sanctions, of course, don't come into effect until early November. This

already having impact on the markets last week, saw a big spike, of course in oil prices. What kind of impact is this having across the board?

DFTERIOS: Yes. Was that number of different factors of play, Becky, but I would have to say the geopolitical risk because of the tensions from

Washington on Tehran really topped that list. We're looking at exports of 2.8 million barrels a day for Iran back in June.

By the end of the year, we could see 2 million of that wiped out below a million barrels a day. No wonder we see the price of oil heading higher.

We see larger clients of Iran. Japan and South Korea starting to cut their orders.

Let's clear what China and India are doing. We heard over the weekend from the Foreign Minister of India that they're going to continue the orders but

they order books seem to be lower than they were two months ago. So, they're trying to straddle both ways.

Let's take a look at the graphic. The snapback influence off the last two months. In mid-August, we had $70.00 a barrel after the snapback sanctions

went in. It's been a staircase higher as you can see here, and we hit 86 plus. Like, 86, 70 last week. We're having around $84.00 a barrel.

Then it's fascinating that Vladimir Putin decided to get in on the debate, as well. Suggesting, "Yes, I don't think prices should be this high." But

I actually point the finger at Donald Trump for his policies on Iran, Libya, and in Venezuela.

ANDERSON: Which is ironic because President Trump himself has come out strongly against the OPEC. Here's what he had to say at the recent U.N.

General Assembly.

(BEGIN VIDEO CLIP)

TRUMP: OPEC, and OPEC nations are as usual ripping off the rest of the world, and I don't like it. Nobody should like it.

(END VIDEO CLIP)

ANDERSON: He might not like it. And -- but there are experts say this surprising go even higher. People talking about $100 on the barrel again,

John.

DEFTERIOS: In fact, at the end of physical market, these of either financial trades right now. We have financial trades according to

strategist I've spoken to that are 10 times the physical market right now.

That means the hedge funds have just piled into this place right now. But this has become such a sensitive issue, Becky. It's being debated on the

U.S. Congress floor as legislation called NOPEC, which basically lifts the immunity for the 15 member states of OPEC themselves because of their

collaboration to lift prices.

Now, their argument is, "Well, look, we helped rescue prices from $26.00 a barrel in 2016. Without us intervening, we wouldn't have a stable market

and all that U.S. investments today.

But the 15 members are starting to put back, but it's a very sensitive issue in Saudi Arabia. How sensitive when they were debating the NOPEC

legislation on the floor, secretary of state of the United States Mike Pompeo called the Crown Prince of Saudi Arabia to suggest, "Look, you are

an ally of ours, but this is a president feels very strongly about this OPEC legislation."

So sensitive is the crown prince, in October, November, they start to released 200,000 barrels a day. Even though, sources within Saudi Aramco

share the reports showing that demand is falling.

So, exactly what they didn't want to do, put more oil on the market when demand is falling. But they're responding no doubt to Washington.

[11:40:02] ANDERSON: And the reason why the U.S. president is making noise, of course, is we're a month out from these U.S. midterms. A very

notion that the price of gas at the pump fought for many including his base. The fact that would be going up at the time of the U.S. midterms he

will assume will be bad news for him and the Republican Party.

There are though -- studies that show that these days, you know, the rise in the price of all doesn't have as big an impact on growth in the U.S. as

it -- as it used to, John.

That the French president has been pushing of course to salvage the Iran deal. But last week, France imposing sanctions of its own on Iran. It is

in retaliation for an attempted bombing on French soil. It's one of them go over this because it's really interesting with a geopolitics lie on

this.

He alleged the target of the attack of the French alluding to an exiled Iranian opposition group that was holding a rally near Paris in June.

French authorities say diplomats from Iran's intelligence ministry were behind the pot.

Now, Tehran denying involvement causes a conspiracy to destroy their relationship with Europe. Do these new sanctions and friction between

France and Iran dash or help dampen enthusiasm for the potential for any deal between the E.U. and Tehran going forward?

DEFTERIOS: Well, let's put it very simply here. It could happen at a worst.

ANDERSON: Yes.

DEFTERIOS: And both for Iran or for president of France Emmanuel Macron. He, at the United Nations General Assembly actually banged the drum and

said, to Donald Trump, "You can't really have it both ways. If you want a lower price of oil, you got to let the sanctions from Iran get lifted." If

-- that's why they've created a special purpose vehicle to try to work around this sanctions.

ANDERSON: Is that going to work, by the way?

DEFTERIOS: Well, I -- 100 percent don't think it's going to work and I'll tell you why. You heard from Patrick Pouyanne of Total in the report that

we put together there. He says, "Look, there is political realities. Yes, I understand why we want to stay engaged with Iran. It's a good political

gesture from the P5 members outside the United States to proceed with it. But I have the reality, I raise 70 percent of my financing from Wall Street

and 30 percent of my shareholder base is in the United States. I can't go head-to-head with U.S. Treasury and the U.S. Federal Reserve."

And the bottom line is here we have a sound bite for this. To like take a closer look, Donald Trump has a break here. He wants lower oil prices.

Gas prices have gone up by the way from $250 a gallon on average to $290. But probably that cross $3.00 a gallon by to the time midterm elections

come through.

But as most people put say, and not just President Macron, you can't have it both ways. If you're going to hammer Iran and take the oil out of the

market, the prices will go higher. Let's take a peek, listen.

(BEGIN VIDEO CLIP)

MARIOS MARATHEFTIS, PARTNER AND CHIEF ECONOMIST, THE GOVERNANCE CREED: You can never have it both ways in economics, and that's indeed a contradiction

in U.S. policy and U.S. desires. Sanctions on Iran will tend to drive oil prices higher. So, the U.S. will have to prioritize and choose one over

the other.

(END VIDEO CLIP)

DEFTERIOS: And I think just to add on this, Becky, I think this is a -- not just an embolden president. But an embolden the United States that

producing nearly 11 million barrels a day. They're not as dependent on the Middle East producers or producers in Latin America as they were before.

So, he has taken a very hard stands here.

But I do think we could see triple digit $100 a barrel by the end of the year as a result of it.

ANDERSON: Fascinating. Thank you, sir.

DEFTERIOS: Nice to see you.

ANDERSON: Nice to see you too. CNN Business is what John is, the emerging markets editor of, of course, is a CNN Money changes its name to CNN

business, and do check out the web site for that when you can.

You're watching CONNECT THE WORLD live from CNN's Middle East program right here in Abu Dhabi. Next, a breaking news story. You know about a savage

Saudi critic walking into a Saudi consulate that apparently disappearing. What happens? We asked his editor, up next.

(COMMERCIAL BREAK)

[11:46:13] ANDERSON: Right now, six days and counting as we loop back to what is our top story this hour that is brimming with questions but really

almost no answers. 59-year-old Saudi journalist and critic of this country's rulers, Jamal Khashoggi, missing for almost a week now after

going to Kingdom's consulate in Istanbul, and not being seen again.

Turkey's president telling reporters he is watching the investigation closely, personally trying to find out he says what happened because the

journalist is a friend of his. Well, now Khashoggi prints a lot of criticism in one of America's most well-respected newspapers, The

Washington Post, writing for them as they contributed the paper leaving his column empty on Friday under the headline, A Missing Voice.

His editor at The Post, Karen Attiah, joining us now live from New York.

The way you last spoke to Jamal, where you were aware that oblate he is being concerned about his safety in any way?

KAREN ATTIAH, GLOBAL OPINION EDITOR, THE WASHINGTON POST: Again, thank you for having me on. Lately, I mean, I tend to check in Jamal. Just in

general, I mean, we would -- he lived in Virginia, near Washington, D.C.

And just from time to time, I would say, "Are you OK? Are you safe? You know, are you sure how are you feeling? And he's -- there are times where

-- you know, with me for coffee or lunch, and he said, "You know, I feel pressure." He felt the pressures that were being placed on his children.

But he would just always say, "You know what, but I have to do this. I have to write. My friends are going to jail, who's going to speak to them?

I have to do this." Whether or not, I'm not aware of any very, very specific -- you know, threats or anything. But I do know -- you know, he

felt -- he felt the pressure.

ANDERSON: When he -- yes, when he -- when he say -- he said he has to do this, how did he perceive his narrative about Saudi Arabia and the changes

of that country is going through? How did he describe, even such many describe him for example, as a dissident, as a fierce critic of a -- of a -

- the crown prince. How has he describes his narrative to you?

ATTIAH: Yes, I mean, not only to me if anybody very closely reads his work, I mean, one thing he would say to me a lot was, "I don't want to be

labeled the dissident." He didn't want that, he rejected that. He wanted -- he didn't want to be this opposition someone -- you know, a person

living in exile. He's just -- I just want to be free to write what I want to write.

And so, I think very often I think what people need to also understand is he was very close to the Saudi royal family. He was an advisor to them.

He was very, very close with senior, senior-level princess.

And so, I think in a lot of his pieces actually, you see him, yes, very critical of the crackdowns and not of the repression. But also praising --

you know, the say Mohammad bin Salman which is Mohammed bin Salman efforts to let women drive.

He took on sometimes an advisor role, and even in our editing process from time to time he would say, "OK, let's tone that down. I really don't want

to personally insult. I really want to guide this young 30-something prince. He's not being given good advice by his advisers, or not

listening.

He's almost like he felt like he needed to help, help him help his country.

ANDERSON: Well, Mohammed bin Salman himself personally laying out in no unclear terms that he has absolutely nothing to do with any of this.

Telling Bloomberg last Wednesday at one of his royal palaces that Jamal left the Saudi consulate soon after getting there in as little as just a

few minutes, in fact.

So, so many conflicting reports here at this point. We are also hearing from the Turks that they are investigating, that President Erdogan, he says

Jamal is a close friend of his, it is closely watching the investigation as things go.

What -- we know less about what happened than we do than it seems that we did just a week or so ago, or six days ago. What we do know is he went

into this consulate, we don't know whether he came out or not. Because we haven't seen any video image, CCTV release either by the consulate or by

Turkish authorities.

At this point, do you buy into what the Turks are saying about an investigation ongoing?

[11:50:57] ATTIAH: Right. You know, we heard --we heard Erdogan's statements today. That's the most high level obviously that we've heard so

far, that there will be an investigation. Again, we're holding out hope that there's good news and we don't -- I don't want to believe that he's

gone.

But, you know, right now, the thing that we do know -- we do know that is that it's Jamal's work and that no matter what, he didn't deserve any of

this. He was there to -- he wanted to marry his Turkish fiance.

But what we do know is we're not going to shut up. We're going to keep his name out there, and we're going to -- again, if anything, anybody who would

want to silence him, they've only made us want to present who he is, who was to the world even more strongly. So, again, I think if there's

anything that is clear is that he is an important voice in what he was saying.

Is saying is important and that we shouldn't need to press for answers and we will be pressing for answers.

ANDERSON: Jamal, a contributing editor to the Washington Post, and his boss there. Thank you.

ATTIAH: Thank you so much.

ANDERSON: Live from Abu Dhabi, you're watching CONNECT THE WORLD. More after this short break.

(COMMERCIAL BREAK)

[11:54:40] ANDERSON: What's your "PARTING SHOTS" tonight? One artist appears to be taking a shot at the world of high-end art, the anonymous

graffiti artist called, Banksy, that stunned the art world with another stunt.

This time, he rigged this piece of work called Girl With Balloon up to a shredder hidden in its frame. Now, a self-destruct function that shocked

everybody. The art work had just sold for $1.4 million at Sotheby's in London on Friday.

Banksy, he seemed to have a good laugh, he posted them the message, "Going, going, gone!" And we are going, going, gone ourselves I'm afraid. To say

it is end of our show, but we are burning the midnight oil on social media where you can see a lot more from us.

Including my time with some Special Olympics athletes meeting some bright young people of determination. We had a good time at then. You should

check that out at facebook.com/cnnconnect. I'm Becky Anderson. That was CONNECT THE WORLD. Thank you for watching.

(COMMERCIAL BREAK)

END