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Queen Elizabeth Hosts President Trump at Buckingham Palace for a State Banquet; At Least 30 Reported Killed in Sudan Security Crackdown; U.K. Labor Leader Boycotts Trump State Banquet. Aired 3-4p ET

Aired June 3, 2019 - 15:00   ET


JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: A very good evening to you, I'm Julia Chatterley in New York with a special hour of QUEST MEANS

BUSINESS. Hala Gorani is at Buckingham Palace where the evening's festivities are just about to begin. Minutes from now, we're going to see

President Donald Trump is to have a banquet with the Queen. It might just be the biggest moment so far of his state visit to the United Kingdom and

Hala, I was expecting you to be in a sparkly dress and a tiara along with everybody else tonight. What happened?

HALA GORANI, CNN INTERNATIONAL ANCHOR: I just forgot my tiara at work. You know, I thought you know, maybe just to be a little bit simpler, I

would just wear my ordinary anchoring clothes.

Julia, President Trump is enjoying red carpet treatment on day one of his day visit to Britain. Take a look.


GORA From the Star Spangled Banner, the President enjoyed the pageantry of Buckingham Palace with a Guard of Honor while inside the Palace. The

President inspected various royal artifacts. The Queen presented Mr. Trump with the First Edition book written by the wartime Prime Minister Winston


Mr. Trump then went on to Westminster Abbey to lay a wreath at the grave of The Unknown Warrior, and then on to Clarence House. Prince Charles shared

a lighthearted moment with the President during afternoon tea with the First Lady and the Duchess of Cornwall.

This day of pomp and circumstance is far from over. This hour, we will hear the toast at the state banquet in Buckingham Palace. That state

banquet is the first for a U.S. President in eight years. CNN's Bianca Nobilo is following every move from Winfield House, which is the residence

of the U.S. Ambassador here in London. What more do we know about what will happen this evening, in the building behind me, Bianca?

BIANCA NOBILO, CNN CORRESPONDENT: We know that it's going to be a sumptuous affair. There are over a hundred and fifty guests. It's

something which the Queen also plans meticulously. She is said to inspect all the parts of the room and the proceedings herself in detail.

There'll be several courses of food and we are yet to know exactly what's on the menu. But we'll let viewers know as soon as we do. They'll also be

many fine alcoholic beverages on offer from port wines to dessert and other sorts.

And also, it's a moment where the President can pass his remarks of thanks to the Monarch who has received him for the State Visit in a toast where we

are likely to be able to watch that as well. So it'll be interesting to see whether or not President Trump does veer into political territory when

he is giving that toast.

But the affair, all in all, it's one of supreme extravagance and as I said, it is sumptuous. Everything is planned down to a tee, even the plate

settings are an exact 18 inches apart from each other. So this is an affair like no other and it is truly a very British event, something which

only two other Presidents have received, I believe George W. Bush and Barack Obama.

So I'm sure that the President who seems to be a fan of the Royal Family and obviously somebody who appreciates pomp and ceremony will be in his

element this evening.

GORANI: All right, and interestingly, the President is coming with his four adult children which goes against protocol in these types of State

Visit situations. How is this likely to be managed by Buckingham Palace? By the Royal Family? The fact that there is a much bigger entourage and

unusual this time around.

NOBILO: Well, Buckingham Palace is set up to manage these types of events and they are managed meticulously. And of course in terms of the Trump

family, it is slightly unusual because yes, these are his children, his elder children, but they also play a role within the Trump administration

as advisers, so they also act in a political capacity.

And something which Donald Trump might enjoy is that the idea or the optics of a meeting between a dynasty which is royal and his own, how he would

like to see political dynasty, perhaps of his own family. So the Buckingham Palace will have no issue whatsoever managing that. His

children arrived in a far less conspicuous manner today and they met Donald Trump and Melania Trump at the Palace.

[15:05:10] NOBILO: And they were fairly -- they certainly put on a far less conspicuous showing. So I think that everybody who is in attendance

is showing deference and reverence towards the event this evening, and it does seem as though even though Donald Trump has been critical and has

insulted the London Mayor over Twitter, and has been involved in spats with British politicians in the past in terms of how he approaches the Queen and

the importance that he places on the British monarchy because of his own family connections to Scotland, and supposedly his mother's reverence for

the Royal Family, I think that's, that's without question, something which is important to him, which he will be endeavoring to respect.

But Hala, these events because they are so laden with protocol and ways to behave in front of the Queen, even the most confident President or Head of

State can easily slip up. And famously Barack Obama did that very thing at his own State Dinner when he began to speak over the National Anthems which

are going to be played.

So there's so much to think about, and it is such an unusual affair that there will likely be one slip up or two, but we'll have to wait to see what

the overall impression is at the end of that dinner.

GORANI: All right, thanks very much, Bianca Nobilo. Today is Royal Day, tomorrow is a day for politics. The President will be meeting the Prime

Minister Theresa May -- not that one-on-one sit down that we had expected slightly, downgraded from that -- there will be a news conference as well.

And it will all be about how Conservative politicians, members of the Tory Party in this country will try to position themselves for this leadership

race. Whoever wins that race will become the next Prime Minister.

High on the menu for this trip is trade. The White House is calling for an ambitious trade deal with the U.K. Speaking on the BBC, the U.S.

Ambassador to the U.K. predicting an agreement could be ready as soon as the U.K. leaves the European Union.


WOODY JOHNSON, U.S. AMBASSADOR TO THE U.K.: I think the fact that it's on the President's -- it's on the President's desk, day one, the minute you

leave, we can negotiate. We are already negotiating. I mean, we're already looking at the terms and conditions that will allow a successful

negotiation. I think it will done -- with the President looking at it, it will be done as expeditiously as any agreement we ever had.


GORANI: Woody Johnson, the U.S. Ambassador here. It's not the speed of a trade deal that has some people here worried, it's what could be in it.

The Mayor of London says, "President Trump is here to force Britain to agree to anything he wants," quote-unquote.

CNN's Hadas Gold is following all the developments. Hadas, what are some of the concerns of Britain here about a possible trade deal with the U.S.

post Brexit?

HADAS GOLD, CNN BUSINESS REPORTER: Well, Hala, one of the first concerns actually that just came out in the last few days, Woody Johnson, in a

different interview even suggested that as part of a trade deal, U.S. private companies could be in a bid on NHS contracts at the National

HealthCare System that is both beloved and criticized here in the U.K. that would be an unprecedented move, and that immediately got condemnation

across the political lines here in the U.K.

We also got a sneak peek into what the Trump administration would like in a future trade deal with the U.K. in March. Some documents were released,

and in those documents, we saw that the U.S. wants the U.K. to change some of their codes on things like agricultural tariffs and food standards.

This is where we get the debate over things like chlorinated chicken, because right now as part of the European Union, the U.K. has to adhere

different food standards in the U.S., and the U.S. wants to bring the U.K. closer to their standards.

But therein lies the tension that the U.K. will have after Brexit because the E.U. is a huge trading partner for the U.K. though the U.S. is the

number one export trading partner for the U.K. In the last year, it represented 18.6 percent of the export market for this country. The E.U.

as a whole, as those 20-plus nations is an even bigger trading partner and the E.U. will have its own standards on things like food and agriculture


So that's the tension that the U.K. will have to try to mitigate at the same time trying to protect itself in this post Brexit landscape. Of

course, Hala, we don't know what that post Brexit landscape will look like. Because we don't actually know exactly what sort of Brexit deal we will

have yet.

As of right now, the deadline has been moved to the end of October. But if that Brexit deal is changed and if for example, the U.K. somehow stays in

the Customs Union; that completely changes the conversation on any of these future trade deals, Hala.

GORANI: All right, Hadas Gold, thanks very much. As the Trump administration pledges to work on trade, it is President Trump's insults

towards the Mayor of London and the Duchess of Sussex, Meghan Markle that have been getting headlines here.

So just how special is the special relationship with Donald Trump as President. Margaret Talev is a CNN political analyst and a White House

reporter of Bloomberg. So these insults directed at Sadiq Khan and Megan Markle, they didn't go down great here, but by and large today has gone off

without major gaffs by the President.



TALEV: Sort of so good. I mean, he sort of got it out of his system before landing, made his point. Tomorrow is the big event, so to speak.

And tomorrow is really when all the policy and substance of this trip is on the line, right? Because he is going to start the morning with this

meeting, this breakfast of business leaders. A lot of that is intended to kind of move the pieces around on the chessboard toward those trade talks

that we're talking about.

And of course, he will meet with the Prime Minister, the outgoing Prime Minister, then there's the news conference -- anything could happen,

anything goes.

GORANI: Right. There's a toast, though at this State Banquet. It's sometimes a free styling affair. There's no prompter. It's not that

structured in terms of -- you don't know what he might say.

TALEV: I had been unable to get the prepared remarks for the toast.

GORANI: Yes, so -- and we know that the Queen will speak and then the President will speak as well. He doesn't drink alcohol though, does he?

TALEV: He does not. But that doesn't mean things can't get dramatic and unexpected. But look, I think, so far, we have seen -- and this has been

pretty consistent that the President has a different approach to the Queen than he does to the political establishment in Britain that he's been more

than willing, almost excited about making his points about his feelings about Brexit, his feelings about how to be aggressive or negotiate or

leverage with the E.U. He does not do that with the Queen.

GORANI: Right. Well, and because the Queen herself was meant to be apolitical and this is supposed to be a ceremonial day, tomorrow is the day

for politics. He has not shied away from sending signals as to who you would like to see replace Theresa May. Boris Johnson is a hard Brexiteer,

a man that sometimes is likened to Donald Trump and his style as well. So it's interesting that he is really making it quite clear who he is backing.

TALEV: He is, but the White House has tried to almost like temper or pre- temper that. We saw a release yesterday, officially from the White House kind of on White House letterhead that said that what the President wants

for Brexit is something that's going to be, you know, sort of minimize volatility, in terms of protecting the U.K. and the economy at large.

And then we're seeing within the last few minutes, a tweet from the President saying like basically unshackle, you know, unshackled the U.K. so

we can get a trade deal. So there's a little bit of mixed messaging that leaves room for the President to adjust what sort of a Brexit he wants,

based on who the next Prime Minister is and how they want to handle it.

GORANI: Why ideologically as the American President in support of Brexit, which weakens the E.U., traditional Western allies, and is probably, you

know, a move and a development that would please the adversaries, the foes of Western democracies such as Russia? Why would the President being

support of this so openly?

TALEV: I mean, it's a great question that most of Europe is asking, and some -- and many people in England are also asking, but the President

generally fuse, the U.S. is having the greatest strength of the most leverage in the bilateral context, rather than one that is multilateral.

Either the U.S. has part of a larger piece, or the U.S. negotiating with the bloc that is larger and stronger, because it's many countries together.

So this is a matter of -- the President would view it as a matter of strengthening the U.S., not a matter of trying to weaken the most important

allies America has. But the real question in Britain is, the Brits have a different calculation than President Trump, does.

The Brits have to worry about their long-term viability and what it means for them? Can they get as good of a trade deal? Can they exert as much

trade leverage as they'd hoped to when Brexit kind of took hold as a more popular idea.

GORANI: And the suggestion even that the United States would be interested in opening up the pharmaceutical market or the NHS to American products,

and therefore weakening the notion, the very foundation of a free and universal healthcare system in this country.

This is the one institution -- and I've lived here a long time -- that really across the board in a bipartisan way has the supportive everybody,

as much as it is criticized. So I do wonder when this sinks in what the reaction will be.

TALEV: It is actually a super explosive issue that I think we're just getting a peek under the curtain at. The Brits have so many plates

spinning right now at once that there's some focus on it, but not nearly as much as I think there will be down the line. It is -- it means something

different in Britain, the health system, then it does the United States. Obamacare and those divisions, what we've seen play out in the United

States is a completely different calculation politically in terms of society than what you'll see playing out in Britain.

GORANI: So there are three chapters to this visit. The first one is today, that's royalty. The second one tomorrow is politics. And the third

one is commemorating and celebrating the sacrifice of D-Day soldier heroes. The 75th Anniversary being the sixth of June, of course, as well.

How will the President approach that because that's going to be -- this is a very emotional day, even 75 years later for Europeans?

TALEV: I think that's right. And we were talking about how tomorrow is very probably the most volatile political day because there is the most

substance on the line. But actually, if anything goes sideways with the U.S. participation in those very important events of Portsmouth on

Wednesday, and then in Normandy on Thursday, that actually has the potential to have very deep repercussions in terms of society.

[15:15:17] TALEV: I think the President knows that, certainly his advisers do. And the consistent messaging that we've been getting in the U.S. ahead

of this trip, is that that is a day for commemoration for history, for respect.

The President has made such a point of honoring American veterans that his team is hoping that that is what he is drawn to, rather than disputes about

NATO funding and percentages of defense spending that are commitments and sort of a current event, but we'll see.

GORANI: Margaret Talev, thanks so much. It's really a pleasure having you and having you on the show in person. It's always a pleasure.

TALEV: It's a pleasure. Thank you.

GORANI: A lot more to come from Buckingham Palace this hour. For now, back to Julia in New York.

CHATTERLEY: Thanks so much, Hala. Great conversation. We will return to London later this hour, of course, whether the Queen is hosting a special

banquet for President Trump and First Lady Melania, of course at Buckingham Palace.

And of course, lower growth, but no recession. That's the message from the top economic adviser at the White House who says Wall Street shouldn't be

bracing for recession. That's next. We're back in two.


CHATTERLEY: Welcome back to QUEST MEANS BUSINESS where there is less than an hour now of trading left on Wall Street this Monday, and as you could

see behind me, it has been a choppy session.

Markets right now are lower amid a slew of negative headlines. We've got recession fears, adding to the broader worries over trade equities, I

think, taking their signal from the moves that we're seeing in the bond markets.

But in terms of stocks, we've got Boeing, Apple, Microsoft among the biggest losers here, all those still with exposure to China. The tech

sector though, the NASDAQ off by nearly 2 percent in the session, pushed lower by regulatory fears with the likes of Facebook, Amazon, and Alphabet,

so watch these names in the coming sessions.

But some of the biggest names on Wall Street however are sounding the alarm, warning that Donald Trump's trade wars could very well hasten a


Let me walk you through them. We've got Morgan Stanley saying that if the United States follows through with its threat to impose additional 25

percent tariffs on Chinese imports, and then Beijing retaliates, it could bring on a global recession in less than a year. They said nine months in


[15:20:04] CHATTERLEY: And the National Association for Business Economics says it has seen a "surge," quote in recession fears because of

protectionist trade policy emanating from the White House.

Sixty percent of economists it surveyed are predicting the post financial crisis boom will end for the United States in 2020. Now, Poppy Harlow

spoke to Kevin Hassett, he is White House's top economic adviser, he in fact announced he will soon be stepping down from the post.

But when she spoke to him, he also admitted that U.S. growth will likely slow to around 2 percent in the second quarter, but he did insist a

recession simply isn't on the cards. Listein in.


KEVIN HASSETT, WHITE HOUSE ECONOMIC ADVISER: Second quarter is looking closer to two than the three, and we're getting jobs numbers this week, I

think the jobs numbers are very crucial, because the thing that's made me very confident we'd have a strong year is that we've got strong job growth

and strong wage growth.

And there have been other numbers like the durable goods numbers, which in part were impacted by a reduced production of Boeing that are a lot, you

know, a lot weaker or significantly weaker. And so I think that this is a very important jobs number this week.

POPPY HARLOW, CNN ANCHOR: It is, but your growth outlook now for the second quarter is close to 2 percent, not 3 percent. That's news.

HASSETT: No, I'm still at 3% for the year, but the point is that the uncertainty about the forecast is much higher than the last time you and I


HARLOW: Okay. Well, that's something we should pay attention to. Let me ask you, there's a new survey out this morning in business leaders, it's

from the National Association of Business Economics, 60 percent of these folks now, are predicting a recession by the end of 2020. Are you more

worried about a recession by the end of next year, this morning, Kevin, than you were a month ago?

HASSETT: Well, the yield curve -- so this is, you know, it's almost real geeky for your audience. But that the yield curve, which is like the

difference between short term and long term interest rates is doing something that it only usually does before recessions, but all the other

economic data are really strong.

And so I think that the economists who are thinking that there's a recession signal going on, if we're talking about that are looking at the

models based off the yield curve.

My view is that the interest rates right now all around the world are being set by quantitative easing, and, you know, Europe is in recession. And so

they've got a deflationary risk and so that the interest rate signal is particularly inappropriate to use for the U.S. right now.

The very best indicator of recession is something this developed by an economist named Marcelle Chauvet at the University of California and her

thing is available at the Saint Louis FRED website, and right now that says the probability of recession right now is about zero.


CHATTERLEY: Mexican officials, including the country's Economy Minister, are in Washington as we speak in an attempt to stave off President Trump's

most pressing threat.

He has given Mexico until June 10th to curb the flow of illegal immigrants across the U.S. border. If they fail to do so, Trump has said, he will hit

all Mexican imports with a 5 percent tariff, and that level could reach as high as 25 percent in the coming months.

Mexico's Foreign Minister said the action won't solve anything.


MARCELO EBRARD, MEXICAN FOREIGN MINISTER (through translator): Tariffs could cause financial and economic instability, which means that Mexico

could reduce its capacity to address migration flows and to offer alternatives to the new migrants who have recently arrived to Mexico.


CHATTERLEY: The Mexican delegation says Trump's tariffs would hurt both countries as well as consumers. Former Mexican Ambassador to the United

States, Arturo Sarukhan joins me now from Washington. Ambassador, fantastic to have you with us.


CHATTERLEY: I think President Trump's calculation here, though, is the threat of economic damage to Mexico here will force the Mexican government

to take action on these migrant flows. Is that right or wrong?

SARUKHAN: That may be his gambit by doing this, but it's absolutely wrong. And it's misguided. The President is standing in the intersection of

reckless and suicidal when it comes to Mexico policy. Reckless because he could collapse the strategic relationship that has been built between

Mexico and United States, which by the way, was built on one very important premise, you don't mix apples and pears.

That is if you've got a challenge or an issue on immigration, you solve it on that issue alone and you don't contaminate it by bringing in a trade

issue like what the President did on Friday.

And suicidal because of the impact this will have on both economies and on the North American perspectives of a speedy ratification of the newly

revamped USMCA, which is now in the Canadian Parliament and the Mexican Congress.

CHATTERLEY: Do you think that's the first casualty of this that as far as the Mexicans are concerned, they are simply not going to agree and finalize

that NAFTA mark two deal while this current tariff trade, political issue as far as migration flows is concerned?

SARUKHAN: I think USMCA can certainly be the big casualty, or one of the casualties of this process. I think it's very hard politically for the

Mexican government to, as they had done on Friday morning, a couple of hours before the President announced this surprising decision, when the

Mexican government had submitted the treaty to Senate ratification in the Mexican Congress, I think it's going to be very hard for that to move


[15:25:10] SARUKHAN: And in the meantime, I think the Mexican government shouldn't blink because of the boomerang effect of those tariffs on

consumers and on businesses in the U.S., the U.S. should -- Mexico should wait out the initial impact at least of those 5 percent tariffs, and have

local constituencies in the U.S. -- governors and mayors and trade associations across the U.S.

Julia, Mexico this quarter became the United States' first largest trading partner in the world that means that we are producing and we have -- we are

producing together, and we've created supply chains together and out of every dollar of Mexican exports to the United States, 40 cents of each

dollar are U.S. content U.S. inputs. So you're also slapping 5 percent tariffs on U.S. content.

CHATTERLEY: Because if you look at the Chinese example, though, the Mexicans know that if you call this President's bluff, he'll act and he'll

slap tariffs on imports. So is that what we're looking at here? If the Mexicans take your advice, we could see tariffs on Mexican imports into the

United States hitting 25 percent by October, is that where this is headed?

SARUKHAN: I don't know if that's going to get -- it's going to head in that direction. Again, I think what you've already seen in Washington in

these past 48 hours of local mayors and governors and Members of Congress, Republican members of Congress pushing back against this, I think should

prevent us from reaching that stage.

But certainly, I think Mexico has done this in the past, it did in 2009 to enforce trucking provisions in the NAFTA. It did it last year when

President Trump applied tariffs on steel and aluminum. Mexico is not toothless. It has devised a way to provide the carousel of countervailing

duties very specific impacts on districts, on produce, on exports of United States into Mexico. So I think it is feasible that Mexico could retaliate

with a new carousel.

CHATTERLEY: You know, it's interesting, you said all the way along that Mexico will not pay for a border wall. It's a First Century solution to a

21st Century problem. I'm quoting your words here. A lot of people look at this and say in the short term, at least this is U.S. firms, this is

U.S. consumers that pay the cost of tariffs, do you see this then in the short term as U.S. consumers actually paying the cost of greater border

protection than an effective border wall if this is what the President is trying to tackle here?

SARUKHAN: Look, if you want to tackle migration, that's fine. And we have to do it together. One of the things that have succeeded in past is that

Mexico face a host of challenges that can only be solved under paradigm of joint responsibility. And Mexico certainly has the responsibility of

working hand in hand with the U.S. to try and prevent transmigration, illegal transmigration of Central American migrants through Mexico on their

way to the United States.

But that will be dealt with by having a discussion and a conversation on immigration and border security issues, not by bringing in a trade issue

and contaminating much of everything else in the U.S.-Mexico bilateral agenda.

CHATTERLEY: Yes, I think a lot of people in Congress, and certainly in the United States would agree with you, Ambassador. Thank you so much, for

joining us on the show.

SARUKHAN: My pleasure.

CHATTERLEY: Great to speak to you.

SARUKHAN: Thank you for having me.

CHATTERLEY: All right, the State Banquet is underway in London where President Trump is in the ballroom of Buckingham Palace. We will take you

there live to London after this. Stay with QUEST MEANS BUSINESS.


[15:30:00] JULIA CHATTERLEY, HOST, QUEST MEANS BUSINESS: Hello, I am Julia Chatterley, we'll be back to London in just a moment as we wait for

live pictures of the state banquet at Buckingham Palace. First though, these are the headlines on CNN at this hour.

Buckingham Palace this hour, they're attending a banquet, the main event of the first day of the president's state visit to the U.K. President Trump

will then go from pomp to politics. Tomorrow, he meets with British Prime Minister Theresa May.

In Sudan, opposition leader say the military used deadly force Monday to break up a sit-in. Medics report at least 30 Demonstrators were killed

with more than 100 injured. Protest groups have suspended all talks with the ruling military council following the brutal crackdown.

The U.S. Secretary of State says President Trump's trade war with China is meant to level the playing field. Mike Pompeo said China has not been

treating western companies the same way that Chinese businesses are treated in the west.

Searchers have spotted five bodies on an unnamed peak in the Himalayan Mountains. They are apparently among 8 climbers who went missing a week

ago. This as the whole party before the climb. Officials say the hikers were likely caught in an avalanche.

Cosmetic retailer Sephora is closing all of its locations this Wednesday to hold diversity training, that's in response to an accusation of racial

profiling made by R&B singer SZA back in April. The company's move echoes Starbucks' response to a similar incident last year. And those are the

headlines at this hour, now back to Hala Gorani at Buckingham Palace. Hala.

HALA GORANI, HOST, GORANI TONIGHT: All right, Julia, we'll see you in a little bit. Here's the latest on what's happening in the building behind

me. The state banquet may be under way, but not everyone here in London is feeling hospitable towards the American president. The Labor leader Jeremy

Corbyn is among the politicians boycotting tonight's events.

Joining me now is the organizer of an anti-Trump protest, Shola Mos- Shogbamimu; she's the founder of the group Women in Leadership. Thanks for joining us. So, you are protesting tomorrow.

SHOLA MOS-SHOGBAMIMU, FOUNDER, WOMEN IN LEADERSHIP: I am protesting all through the three days that he is here, absolutely. The key sole thing

about all of the protests is that no democratically elected president has the right to a license to push an agenda of divisiveness and bigotry, of

hatred and prejudice, which is what Donald Trump's administration really represents.

This is a man who is so weak that he calls powerful women nasty. There's a man who's waged a war on women's rights, LGBT community during his

administration, you've had the Muslim ban, disaster -- everything to exclude people, and he is also the face of the far-right. He's a symbol of

leadership for far-right populism.

This is what we are standing up against, and it's absolutely important that we do so. Look, I refuse to stand on the sidelines and be judged by

history as being complicit through my silence.

[15:35:00] GORANI: I understand that you dislike the president and his policies. Can you separate the man from the office because there are those

who don't support Donald Trump or what he says or his rhetoric or his policies, and say yet, this is an important relationship, we need to

support at least the idea of a state visit.


GORANI: Extended to an American president --

MOS-SHOGBAMIMU: We all absolutely respect the office of the president of the United States of America. It is the most powerful office in the world.

However, the man who sits in that office, anyone who sits in that office has to earn our respect, and Donald Trump has not done that.

In fact, the fact that someone like him is wielding the power and influence that, that office represents is a tragedy. It's absolutely outrageous

because look at what he's doing with it. He's genuinely a global threat. Look, Sadiq Khan is absolutely right to compare him to 20th century

fascists. Because everything he is doing is to push, is to -- is to exclude and segregate and to promote divisiveness.

GORANI: What should the U.K. according to you do then in a post-Brexit world where they need to maintain and nurture a very close relationship

with the United States, knowing that in the next few years, they will need if Donald Trump is re-elected a partner on the other side of the Atlantic.

MOS-SHOGBAMIMU: I think it's important that our morals, our values and our beliefs are not put at stake because our government puts us in this

neurotic state of Brexit. And it is possible, I mean, we've got politicians who are meant to have zillion years of experience and

diplomacy. So there's no need to pander to the influence that Donald Trump represents.

We already gave him a visit last year, Hala, and that visit cost us millions of pounds, millions that should go into increasing the pay of

civil servants, millions that should go into putting police, more police on the streets to combat knife crime, to go into our children's centers. All

of this national things that we require.

GORANI: So what -- now that he's here --


GORANI: So, yes, you know, I know your ideal situation would be no visit at all, but the visit is unfolding. Is there any positive that could come

from it from your -- from your vantage point?

MOS-SHOGBAMIMU: Well, you know, if it was possible for Donald Trump -- I mean, to be honest with you, it was possible for him to take a good look at

the responses he's getting from the people power that the United Kingdom represents, he should take that -- he should take a note in that and say

look, maybe there's something about his behavior that he should change.

But he is never going to change. This is a man that before he left for the United Kingdom made condescending remarks to Theresa May, was already

endorsing Boris Johnson and promoting Nigel Farage. I mean, goodness, they're all cut from the same cloth. The only difference between Boris and

Trump is that Boris has better hair.


MOS-SHOGBAMIMU: This is -- this is a man that keeps on moving --

GORANI: So the answer is no --


GORANI: Nothing positive, but if -- look at any kind of silver-lining here because I guess would it be -- would it be worse to not nurture this

relationship at all as you said?

MOS-SHOGBAMIMU: We will always have a special relationship with the United States of America. All we're saying is having a relationship during the

Trump administration does not require you pandering to his influence, does not require you normalizing his behavior and acting as though what he does

is acceptable, it's not acceptable.

Our government should use its platform to call him out on the wrong things that he is doing, quite frankly. Because as I said, he is a global threat.

GORANI: So you'll be at the protest tomorrow and we'll see if the number's compared to last year's protest. We know that the inflatable Trump baby --

MOS-SHOGBAMIMU: Yes, Trump baby will be there --

GORANI: Will be making it. Shola Mos-Shogbamimu, thanks very much for joining us.

MOS-SHOGBAMIMU: Thank you --

GORANI: I will -- in fact, you'll be hearing from a Republican as well a little bit in a few minutes who supports Donald Trump, so we have all views

here represented. Thank you, Shola, appreciate it. The state banquet is under way at Buckingham Palace behind me. The toasts and anthems are

expected any moment now.

Let's go to CNN's Pamela Brown for more. What more can you tell us about what the evening has in store for the president, Pamela?

PAMELA BROWN, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, this is the main event, capping off a very busy day for President Trump. He has arrived

there at Buckingham Palace for this lavish opulent state dinner. It's a state dinner that he's only the third U.S. president to have the honor of

attending a state visit, this overall state visit.

It's really an honor for President Trump. And so tonight is the state banquet. Queen Elizabeth has signed off on every single detail for the

dinner, this is a menu that has been six months in the works. A hundred and fifty people will be attending, including several White House

officials, and of course the royal family.

So this is quite an opulent affair, capping off as I said a very busy day with the president having lunch at Buckingham Palace, tea at Clarence

House. He went to Westminster Abbey to lay a wreath as well, he was able to review the royal British guards with this opening ceremony. So this has

certainly been a day that President Trump seems to have really enjoyed.

He's been relishing all of the attention. I mean, this is a very fancy affair, white tie there tonight for the state dinner. And tomorrow, the

president also has a very busy day here in London. There will be a business round table with the Prime Minister, other business leaders, and

his daughter Ivanka will also be attending we're told by a U.S. official.

[15:40:00] He'll then be meeting, discussing -- having more discussions with Theresa May, and we do expect there to be a joint press conference

after. And there's been a lot of talk about the special relationship between the U.S. and Great Britain. But there does appear to be some

cracks in that relationship over some key issues on foreign policy, on Iran, on China, and then of course, there's climate change.

And just recently, President Trump had accused British intelligence of spying on his campaign. So there certainly is a lot for the two leaders to

talk about. But at the same time, Theresa May is stepping aside in just a few days. And so, it's unexpected that any concrete deliverables will

actually be coming out of the meetings tomorrow.

GORANI: All right, Pamela Brown, thanks very much. The special relationship has a few cracks in the surface from trade deals to cyber

security. We break down the bones of contention. Stay with us.


GORANI: Mind the pomp and pageantry, the special relationship appears to be in some ways on thin ice. First, there's the issue of Huawei. The U.S.

has blacklisted the Chinese firm and is reportedly pushing for the U.K. to follow suit on all aspects of Huawei components by the way, not just the

core ones.

The Iran nuclear deal is another major flash-point. Britain is committed to the agreement, despite the U.S. withdrawal, alongside is EU partners by

the way. And then there's Brexit. President Trump had ignored diplomatic norms and weighed in on the state of British politics, saying the U.K.

should take a tougher stance with Europe.

He's also praised some of Prime Minister Theresa May's possible successors, including Boris Johnson. Greg Swenson is a founding partner of the

merchant banking firm Brigg Macadam, he's also a representative for Republicans overseas. Thanks for being with us. All right --


GORANI: So let's talk a little bit about these issues that could divide the two sides. Because on Huawei --


GORANI: For instance, there are potentially some disagreements there --

SWENSON: Sure --

GORANI: That could really drive a wedge between the Americans and the Brits.

SWENSON: Yes, I know, absolutely. And you'll see -- you know, look, this is a long-term relationship, like a family, siblings don't necessarily

always agree, and you're going to have some disagreements and some disputes. So, I don't think that the U.K. has to do everything the U.S.

commands them to do or vice versa, but you know, look -- you know, Huawei has been an issue.

[15:45:00] The president has done a good job of exposing that issue and people are much more aware of it than they were. And remember, the

Australians and the New Zealanders already pulled out or ordered Huawei, you know, or stopped --

GORANI: Right --

SWENSON: Their governments from using Huawei.

GORANI: Greg, I just want to let our viewers --


GORANI: And you in fact, if you look at the screen here --

SWENSON: Sure --

GORANI: What we're seeing is the entrance to the official banquet room. This is a -- and you see her majesty the queen there and to her right is

the U.S. President Donald Trump, behind them is Prince Charles, the first lady Melania Trump. There you have Camilla; the Duchess of Cornwall and

you have Theresa May; the outgoing Prime Minister and Prince William.

This is Kate, Prince William's wife, Steve Mnuchin I believe --


GORANI: The Treasury Secretary. So this is days and days in the making --


GORANI: Just to set the table.


GORANI: Now, we're expecting the national anthems of both countries to be played and then toasts. Not everybody is happy about this as you know,

Greg, my previous guest, for instance --

SWENSON: Sure --

GORANI: One of the protest organizers saying this is a man who is divisive, who had said some racially insensitive and hurtful things, he's

praised the far-right, who's spoken badly about women, called them nasty.


GORANI: How do you respond? Are you a Trump supporter?

SWENSON: Yes, a Trump supporter --

GORANI: How do you --

SWENSON: He's really actually grown on a lot of -- grown on me, grown on a lot of conservatives --

GORANI: Greg, just one moment --


GORANI: We're going to listen in now for a little bit. All right, there you have it. Victoria Arbiter joins me now. By the way, Victoria, we have

an idea of what the menu will look like now. We have halibut for starters -- let me just check the menu there. I've lost it, but there's a sable for

dessert, and I believe some sort of meat main dish. All right, are we going to Victoria here?

VICTORIA ARBITER, CNN ROYAL COMMENTATOR: Yes, we have in terms of the menu, yes, everything will have been sourced from the royal farms, from the

royal estates. We've got lamb from Windsor, we've got fish as you mentioned, all of the vegetables, probably grain in Windsor or indeed up at


Tonight will be about laying on the finest hospitality Donald Trump perhaps will have ever experienced. And this is the kind of experience he loves.

He likes his attention, he likes to have the grand opulent affair all in his honor. So, as you can see from these images that we're seeing inside,

the flowers are over-the-top gorgeous.

Each of the chairs will have been measured with a ruler to make sure it was the perfect distance from the table. The finest cutlery, the finest

glasses and bottles of wine that I believe cost in the region of 1,400 pounds. So tonight is a very special affair, and it is all about really

making tonight the show piece of the state visit. Tonight is about welcoming the guests, tomorrow will be politics and of course Wednesday

will be poignant --

ELIZABETH ALEXANDRA MARY WINDSOR, QUEEN OF ENGLAND: I'm delighted to welcome you and Mrs. Trump to Buckingham Palace this evening. Just 12

months after our first meeting at Windsor. Visits by American presidents always remind us of the close and long-standing friendship between the

United Kingdom and the United States.

And I am so glad that we have another opportunity to demonstrate the immense importance that both our countries attach to our relationship. In

the coming days, you will see some of our most treasured historical buildings, speak to the business leaders whose expertise and innovation

drive our economies and meet members of our own services, past and present.

You will also travel to Portsmouth and Normandy to commemorate the 75th anniversary of D-Day. On that day and on many occasions since, the Armed

Forces of both our countries fought side by side to defend our cherished values of liberty and democracy.

[15:50:00] Mr. President, in your State of the Union address this year, you paid tribute to some of the American heroes who risked their lives, and

we owe an immeasurable debt to the British, American and allied soldiers who began the liberation of Europe on the 6th of June, 1944.

I paid my first state visit to your country at the invitation of President Eisenhower. As supreme allied commander, he had ultimate responsibility

for the execution of the Normandy landings. In his headquarters in St. James' Square, not far from Buckingham Palace, British and American

officers worked closely together to plan the freedom of a continent.

And it would be no exaggeration to say that millions of lives depended on their common endeavor. As we face the new challenges of the 21st century,

the anniversary of D-Day reminds us of all that our countries have achieved together. After the shared sacrifices of the second World War, Britain and

the United States worked with other allies to build an assembly of international institutions, to ensure that the horrors of conflict would

never be repeated.

While the world has changed, we are forever mindful of the original purpose of these structures, nations working together to safeguard a hard won

peace. Of course, it is not only our security which unites us, but our strong cultural links and shared heritage.

Every year, there are almost 4 million visits by Americans to the United Kingdom, with a great number claiming British descent. And with your own

Scottish ancestry, Mr. President, you, too, have a particular connection to this country. We are also bound by the strength and breadth of our

economic ties as the largest investors in each other's economies.

British companies in the United States employ over one million Americans, and the same is true vice versa. Mr. President, as we look to the future,

I am confident that our common values and shared interests will continue to unite us. Tonight, we celebrate an alliance that has helped to ensure the

safety and prosperity of both our people for decades, and which I believe will endure for many years to come.

Ladies and gentlemen, I invite you all to rise and drink a toast to President and Mrs. Trump, to the continued friendship between our two

nations, and to the health, prosperity and happiness of the people of the United States.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Your majesty, Melania and I are profoundly honored to be your guests for this historic state visit.

Thank you for your warm welcome, for this beautiful weather, your gracious hospitality, and your majesty, it's nearly seven decades of treasured

friendship with the United States of America.

This week, we commemorate a mighty endeavor of righteous nations and one of the greatest undertakings in all of history. Seventy five years ago, more

than 150,000 allied troops were preparing on this island to parachute into France, storm the beaches of Normandy, and win back our civilization. As

her majesty remembers, the British people had hoped and prayed and fought for this day for nearly five years.

When Britain stood alone during the blitz of 1940 and 1941, the Nazi war machine dropped thousands of bombs on this country and right on this

magnificent city. Buckingham Palace alone was bombed on 16 separate occasions. In that dark hour, the people of this nation showed the world

what it means to be British.

They cleared records from the streets, displayed the Union Jack from their shattered homes, and kept fighting on to victory. They only wanted

victory. The courage of the United Kingdom's sons and daughters ensured that your destiny would always remain in your own hands.

Through it all, the royal family was the resolute face of the Commonwealth's unwavering solidarity. In April, 1945, newspapers featured

a picture of the queen mother visiting the woman's branch of the army, watching a young woman repair a military truck engine. That young mechanic

was the future queen. A great woman.

Her majesty inspired her compatriots in that fight to support the troops, defend her homeland and defeat the enemy at all cost. We also pay tribute

to Prince Philip's distinguished and valiant service in the royal Navy during the second World War. On D-Day, the queen's beloved father, King

George VI delivered a stirring national address.

That day, he said "after nearly five years of toil and suffering, we must renew that crusading impulse on which we entered the war and met its

darkest hour. Our fight is against evil and for a world in which goodness and honor may be the foundation of the life of men in every land."

This evening, we thank God for the brave sons of the United Kingdom and the United States who defeated the Nazis and the Nazi regime and liberated

millions from tyranny. The bond between our nations was forever sealed in that great crusade. As we honor our shared victory and heritage. We

affirm the common values that will unite us long into the future.

Freedom, sovereignty, self-determination, the rule of law, and reference for the rights given to us by Almighty God. From the second World War to

today, her majesty has stood as a constant symbol of these priceless traditions. She has embodied the spirit of dignity, duty and patriotism

that beats proudly in every British heart.