Return to Transcripts main page

CNN Newsroom

Iran's Foreign Minister Concerned about 'Miscalculations' with U.S.; Rafah Crossing to Partially Reopen After Nearly 2 Years; Britain's Fallen Prince Appears in Newly Revealed Photos; Xi: China Should Have 'Global Reserve Currency' Status; Bad Bunny, Kendrick Lamar Earn Top Honors at Music Awards; Winter Olympics Set to Begin in Milan on Friday. Aired 12-1a ET

Aired February 02, 2026 - 00:00   ET

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

(COMMERCIAL BREAK)

POLO SANDOVAL, CNN ANCHOR: Hi, everybody. It's great to start the workweek with you. I'm Polo Sandoval, live in New York. And here's what's coming your way here on CNN NEWSROOM.

[00:00:44]

As tensions continue building between the U.S. and Iran, in a CNN exclusive interview, Iran's top diplomat says that he's confident a deal can be made with the U.S.

And it was the biggest night in music: the Grammys. We'll tell you which artists brought their political message to the center stage.

And we are just a few days away from the 2026 Winter Olympics. We'll take you to Milan to see the final preps that are underway ahead of the opening ceremony.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Polo Sandoval.

SANDOVAL: Iranian officials say that they are confident that they will be able to strike a nuclear deal with the United States.

That optimistic message comes as U.S. President Donald Trump threatens to take military action against Iran. And that's if it does not agree to negotiate a nuclear deal.

In recent weeks, the U.S. increased its military presence in the Mideast, and that includes the arrival of the Lincoln carrier strike group.

Iran's supreme leader, Ayatollah Ali Khamenei, warning that his country will respond in kind to any military attack. And he promises that any conflict would turn into what he described as a regional war.

Well, this is how President Trump responded to those comments.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: Why wouldn't he say that? Of course he's going to say that. But we have the biggest, most powerful ships in the world over there. Very close. A couple of days.

And, hopefully, we'll make a deal. We don't make a deal, then we'll find out whether or not he was right.

(END VIDEO CLIP)

SANDOVAL: CNN senior international correspondent Fred Pleitgen spoke with Iran's foreign minister in a CNN exclusive interview to get his reaction to some of the comments from the U.S. president.

(BEGIN VIDEOTAPE)

ABBAS ARAGHCHI, IRANIAN FOREIGN MINISTER: So, I'm not concerned about war. What I'm concerned of is miscalculations and military operation based on misinformation and disinformation campaigns.

It is obvious to us that there are certain elements, certain parties who want to drag President Trump into this war for their own benefits. And I think President Trump is wise enough to make the correct decision.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: How can a meaningful negotiations process be jumpstarted right now?

ARAGHCHI: A meaningful negotiation should be based on trust. And unfortunately, we have lost our trust to the United States as a negotiate -- negotiating partner. We need to overcome this mistrust.

There are now some intermediaries, some -- some friendly countries in the region who are trying to build this confidence. It is difficult, but they are trying.

So, I see the possibility of another talk if the U.S. negotiation team follows what President Trump said. To come to a fair and equitable deal, to ensure that there is no nuclear weapons.

PLEITGEN: So, if this confidence is built, if you get to that stage, you are ready and willing to sit down directly with the American side, with someone like Witkoff, and talk?

ARAGHCHI: You know, the question of directly and indirectly is something else. That is the form of negotiation. And we have to -- we have to --

PLEITGEN: That's what they say they want.

ARAGHCHI: Yes. But we have to take care of the substance of negotiation. And that is more important.

PLEITGEN: Yes. And President Trump says that negotiations are already going on. He has said overnight that there is negotiations taking place.

How does that work right now, with this confidence building, with -- with countries in the region also helping? ARAGHCHI: That is true, intermediaries. As I said, there are some

countries who convey messages and who are trying to build confidence and to -- to prepare the ground for a meaningful negotiation. And we are working with them, and we are exchanging messages.

PLEITGEN: Would you say that these talks that are going on right now are fruitful and can lead to a de-escalation of the situation, to a point where real talks can take place?

ARAGHCHI: I think so far, yes, fruitful.

PLEITGEN: Things like enrichment; things like ballistic missiles; things like proxy forces in the region. I know that the United States has talked about wanting to negotiate about that, as well.

[00:05:08]

Is that completely out of the question for you, or is that something you could at least talk about?

ARAGHCHI: President Trump said no nuclear weapons. And we are fully agree. We fully agree with that. That could be a very good deal. Of course, in return, we expect sanctions lifting. So that deal is -- is possible.

Let's do not talk about impossible things.

PLEITGEN: What do you think the consequences would be if there was a full-on military confrontation between Iran and the United States?

Because I know your military has changed its doctrine, that if there is a major attack, it would be considered existential for the Islamic Republic. What would that mean for -- for the region here?

ARAGHCHI: If war starts, that would be a disaster for everybody. In the previous -- in the previous war, we tried hard to limit the scope of -- scope of war between Iran and Israel.

This time, if it is between Iran and the U.S., since the U.S. bases are spread all over the region, then inevitably, you know, many parts of the region would be involved, engaged. And -- and that could be very dangerous.

Our missiles were tested in a real war last time, and we were able to, you know, understand their problems, their weak points, and their strengths. So, we learned many lessons from those 12 days of war. And I think we are now very well prepared.

But again, being prepared doesn't mean that we want war. We want to prevent a war.

PLEITGEN: President Trump says he's also concerned about the rights of those who are in custody. As you know, he said that he believes that he prevented hangings from taking place here in Iran.

Can you guarantee the rights of those who have been detained and whose cases are being looked into right now?

ARAGHCHI: Of course. First of all, there was no plan for executions or hangings, so there were no plan as such. And right now, I can, you know, affirm that the right of each and every person who is arrested and detained would be observed and guaranteed.

(END VIDEOTAPE)

SANDOVAL: All right, let's get some analysis now. Joining us is author and columnist at "The New Yorker," Robin Wright. Robin, thank you so much for taking the time for us.

ROBIN WRIGHT, COLUMNIST, "THE NEW YORKER": Thank you, Polo.

SANDOVAL: So, "The New York Times'" David Sanger told us on air yesterday that he'd have a better sense of the Trump administration's goals with Iran if it talked less about its warship presence and perhaps more about what it actually plans to do with it.

I'm interested in your thoughts. What is your sense of what the president actually plans to do with Iran? Do you think he's decided yet?

WRIGHT: I don't think he's decided yet. I think the -- both Washington and Tehran are gaming each other at the moment. I think both of them would like to avoid conflict, would like to get a deal. But I think they're still very far apart in terms of what they're willing to give to each other.

And if there isn't some kind of engagement, whether it's through intermediaries in Oman, or eventually directly, I think there's a growing danger that there is some kind of military action.

Now, what the goal is, in terms of the United States using kinetic action, it's too unclear. Does it want regime change? Does it really want just to inspire protesters to push the government for evolutionary political change?

So, I think this is something that is a little bit like Iraq and Afghanistan. The U.S. knows what it can do militarily. The question is, how far is it willing to go diplomatically, and what's it willing to do kind of politically in terms of Iran's future?

SANDOVAL: And let's stay on the topic of this negotiations. Remind our viewers around the world what some of the key demands are that the U.S. is after, and which ones you see as really being the hardest for the Iranians to accept.

WRIGHT: Well, Steve Witkoff, who is the lead negotiator, has outlined four kind of ultimatums to Iran that involve the end of any nuclear ambitions, the end of a ballistic missile program, the end of support for allied or proxy extremist groups in the region.

The -- the Iranians, however, will argue that they have a right to nuclear energy, which is true under the National Proliferation Treaty. But of course, this is where there's a huge gap in terms of what the

United States is willing to accept in terms of any uranium enrichment, the use of that for either a military program, of course, but possibly also for energy purposes.

[00:10:06]

So, there's still a wide gap between the two sides.

SANDOVAL: And there's still the question, too, of just how much power Iran counts on; how much support, I should say.

We know that Iran's regime greatly debilitated last year, much of its leadership taken out. Then, of course, the nuclear sites attacks last summer, the strikes, I should say. What kind of support does the regime itself still count on today?

WRIGHT: Well, in terms of the region, it has very limited support. Hezbollah in Lebanon is weakened. Hamas, of course, in Gaza, although both sides are -- both militias are still -- still armed. The Houthis in Yemen are a little bit weaker. And of course, the Assad regime in Syria has been ousted.

So, Iran doesn't have many allies in the region.

But there are many countries in the Middle East that do not want to see military action and have encouraged the Trump administration to try diplomacy. And that includes Saudi Arabia and Turkey and Egypt and Oman.

SANDOVAL: Right. And despite what the regime tries to -- to project on the world stage, the reality is it is at its weakest, perhaps.

How would you describe the current situation inside Iran? We saw weeks of protests last month. It seems that that situation has, at least for now, calmed down, but could potentially see another resurgence of that.

But what is actually happening inside Iran among the residents, the civilians?

WRIGHT: Well, I think you need to put this in context: that the regime has seen increased protests since 2009, when millions took to the streets across the country to protest a fraudulent presidential election.

In 2017, 2018 and '19, there were protests over economic issues. Iran actually increased fuel prices by 300 percent.

In 2022, there were protests over personal freedoms and the women life freedom movement.

So, there are Iranians are -- feel betrayed by the revolution. They're angry over the crackdown. But at the moment, the regime still has the military tools to repress the challenges to it. It has the arms; it has the numbers. Hundreds of thousands of security forces. And so, it -- it has lost the majority support, clearly, inside the

country. But it still has the ability to crack down. And that's, I think, the -- the big question about the future of the opposition movement.

SANDOVAL: A lot that we are yet to see.

"The New Yorker's" Robin Wright, thank you so much for your time and your analysis. As always, great talking to you.

WRIGHT: Thank you, Polo.

SANDOVAL: Russia is facing new accusations of targeting civilians in Ukraine following drone strikes on a bus and on a maternity ward on Sunday.

At least 12 mine workers were killed and eight others wounded after a Russian drone struck their bus in Southeastern Ukraine. Their employer, Ukraine's largest private energy company, says that the bus was taking their workers home after working at a coal mine, and that the strike was part of a larger attack on its mining operations in the region.

And that happened just hours after a separate strike on a maternity hospital. At least six people were injured in that attack.

Ukrainian officials say that all medical staff and patients, including three women in labor, were able to get to shelters in time.

And President Volodymyr Zelenskyy condemning these attacks, calling them a demonstrative crime and deliberate escalation by Russia.

The president later confirmed on X that another round of peace talks between Russia, Ukraine, and the U.S. are expected to take place later this week in Abu Dhabi.

After nearly two years, the Rafah Crossing, that crucial lifeline for Palestinians in Gaza, it is expected to reopen partially on Monday.

A trial phase was conducted this past Sunday. The crossing, which connects Gaza and Egypt, will be allowing a limited number of Palestinians to leave the war-torn enclave.

And the reopening brings to a conclusion the first phase of the U.S.- brokered ceasefire deal.

CNN's Jerusalem correspondent Oren Liebermann, with those details.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN INTERNATIONAL CORRESPONDENT: Israeli and Palestinian officials say it is a trial phase --

LIEBERMANN (voice-over): -- on Sunday for the Rafah border crossing, and that pedestrian traffic won't be allowed to start just yet. Israel's coordinator of government activities in the territories, or

COGAT, for short, says the European Union, Egypt, and other representatives are at the Rafah border crossing, working through what that limited opening will look like.

They say, after this trial phase, pedestrians will begin to pass through that crossing. But there is no specific date, at least from the Israelis, on when it will open.

Meanwhile, Ali Shaath, who is the head of the Palestinian technocratic committee, says the trial phase will last until Sunday. And then on Monday, Rafah will be open to pedestrian traffic for the first time in nearly two years.

[00:15:04]

It has been largely closed since May 2024, when Israeli forces in Gaza took over the border crossing itself.

But this is just a limited opening. There will be no humanitarian aid or commercial goods as had flowed through that crossing for years. This will be only pedestrian traffic.

An Israeli security official says it will be limited to 150 Palestinians leaving Gaza each day, and only 50 allowed back in.

This is really the final phase or the final step --

LIEBERMANN: -- in the first phase of the U.S.-brokered ceasefire agreement. Israel had refused to open it until all of the living and deceased hostages had been returned from Gaza, and the final deceased hostage, Ran Gvili, was returned just last week.

Oren Liebermann, CNN, in Jerusalem.

(END VIDEOTAPE)

SANDOVAL: Well, the fallout from the latest Epstein file releases hitting the British royal family yet again: images of the former Prince Andrew appearing to show him leaning over a female on the floor.

Just ahead, what the U.K. prime minister wants the former prince to do about this latest revelation.

(COMMERCIAL BREAK)

[00:20:32]

SANDOVAL: Welcome back. Five-year-old Liam Ramos. You see him here as well as his father, Adrian. They are both finally back in Minneapolis after being released from a Texas detention center over the weekend.

Federal officers had taken them into custody just outside of their suburban house in Minnesota. Well, the image of an officer holding Liam's Spider-Man backpack. You see him there wearing that light blue bunny hat, as well? Well, this image, it sparked national outcry over the detention of a child and reignited that conversation about immigration.

Officials were accused of using Liam as bait to get his mother to open the door. That's a claim that the administration denies.

The judge who ordered their release is issuing a blistering opinion, calling out immigration officials for their tactics, as well as their use of administrative warrants, which is a big, debated issue right now on Capitol Hill.

Deputy Attorney General Todd Blanche responding to the judge's ruling in this ABC interview.

(BEGIN VIDEO CLIP)

TODD BLANCHE, U.S. DEPUTY ATTORNEY GENERAL: The immigration law, the body of immigration law, is much different than -- than our typical criminal process because of the administrative nature of what we do every day. And so, to the extent that we need to appeal that judge's decision, I promise we will.

GEORGE STEPHANOPOULOS, ABC: To clarify, the lawyer for Liam Ramos and his father say they were following the legal process for asylum.

BLANCHE: I don't know what that means. There's a very meaningful dispute about whether they had properly applied for asylum.

(END VIDEO CLIP)

SANDOVAL: And those protests, they haven't stopped. In fact, they've continued across the United States.

Here's a snapshot of what we saw over the weekend. Many of those on Friday, with demonstrators calling for ICE agents to leave their cities.

And this comes after the shooting deaths of Renee Good and Alex Pretti. They were both killed at the hands of federal agents recently.

And anti-ICE sentiment, it was also a big theme at Sunday night's Grammys. It wrapped up just a few moments ago. While accepting one of his awards, performer Bad Bunny used some of his time on stage to send out some criticism towards ICE.

(BEGIN VIDEO CLIP)

BAD BUNNY, SINGER: Before I say thanks to God, I'm going to say ICE Out.

We're not savage. We're not animals. We're not aliens. We are humans, and we are Americans.

(END VIDEO CLIP)

SANDOVAL: Yes. In another one of his victory speeches, he also dedicated his award to those who left their countries following their dreams, a clear reference to migrants.

A number of other artists, you see them there wearing those round pins. They read "ICE Out."

And singer Billie Eilish also speaking out against the federal agency in comments that were partially censored in the live broadcast.

And it seems that there is some disagreement among House Democrats on how to address the partial and ongoing U.S. government shutdown.

They held a private call on Sunday to discuss their approach to the funding bill that was passed by the Senate on Friday. And sources are now telling CNN that some Democrats voiced support for the package during that call.

Previously, though, House Democratic leader Hakeem Jeffries had told Republicans -- specifically called the House speaker and told them that he would not count on Democratic votes.

The deal on the table would fund most of the government through September, but Homeland Security would only get funded for two weeks. And this while lawmakers discuss potential reforms to federal immigration enforcement.

A confident House Speaker, Mike Johnson, insisting that Republicans can pass legislation even without support from Democrats.

(BEGIN VIDEO CLIP)

REP. MIKE JOHNSON (R-LA): Well, let's say I'm confident that we'll do it at least by Tuesday. We have a logistical challenge of getting everyone in town.

And because of the conversation I had with Hakeem Jeffries, I know that we've got to pass a rule and probably do this mostly on our own.

(END VIDEO CLIP)

SANDOVAL: The U.S. Justice Department says that there will be no Epstein-related charges as more files are released.

Pictures like the ones we want to show you, they have been among the millions of documents that have been released over the past several weeks.

More than 3 million pages were released on Friday alone, according to the DOJ. Some have been withheld based on different legal privileges, according to DOJ officials.

But despite what the photos appear to show, or what the other files contain, the deputy attorney general says that none of it actually meets the threshold for prosecution. Listen to him.

[00:25:03]

(BEGIN VIDEO CLIP) BLANCHE: I can't talk about any investigations, but I will say the

following, which is that in July, the Department of Justice said that we had reviewed the files, the quote, "Epstein files," and there was nothing in there that allowed us to prosecute anybody.

We then released over 3.5 million pieces of paper, which the entire world can look at now, and see if we got it wrong.

Now, there's a lot of correspondence. There's a lot of emails. There's a lot of photographs. There's a lot of horrible photographs that appear to be taken by Mr. Epstein or where people around him. But that doesn't allow us necessarily to prosecute somebody.

(END VIDEO CLIP)

SANDOVAL: And the fallout from the latest Epstein file release seems a bit more clear in the United Kingdom.

Lord Peter -- Peter Mandelson has resigned his membership in Britain's Labor Party, according to Britain's Press Association. He says that it's to avoid further embarrassment about his relationship with Jeffrey Epstein.

Mandelson lost his job as U.S. ambassador last year because of his connections to the late, disgraced financier, who he once called, quote, "my best pal."

And more apparent embarrassment for the former Prince Andrew in the latest batch of files that were released by the U.S. Justice Department.

Photographs showing him on all fours, leaning over a female lying on the floor. Now, while the images don't necessarily imply any wrongdoing, they do add support to King Charles's decision to strip his brother of all royal titles and privileges.

Here's CNN's Larry Madowo.

(BEGIN VIDEOTAPE)

LARRY MADOWO, CNN INTERNATIONAL CORRESPONDENT: Friday's Epstein files, released by the U.S. Justice Department, adding political pressure and renewed attention --

MADOWO (voice-over): -- on the former Prince Andrew, because they appear to show contact between the British royal and Jeffrey Epstein, two years after the disgraced financier pleaded guilty to soliciting sex from a minor.

The British prime minister, Keir Starmer, telling reporters in Japan that he believes that Andrew Mountbatten-Windsor, as he's now known, should testify before the U.S. Congress.

He believes that Epstein's victims have to be the first priority. He didn't comment on whether or not Andrew should give an apology. He says that's for him to decide. But he said that he's always believed that anyone who's got information should be prepared to share that information in whatever form they're asked to do that. You can't be victim-centered if you're not prepared to do that.

MADOWO: This is because the latest documents include pictures and emails between the former Prince Andrew and Jeffrey Epstein.

MADOWO (voice-over): Some of the pictures feature what appears to be Prince Andrew leaning over the female, whose face is blurred. In another one, he's looking directly at the camera. We don't have full context about when or where these pictures were taken.

But we also have some emails. In one Epstein office to introduce the former Prince Andrew to a friend. When Andrew says he's willing, Epstein says this friend is a 26-year-old Russian.

In another one, they're planning a meeting in London.

These pictures, these emails do not constitute wrongdoing, and CNN has reached out to Andrew Mountbatten-Windsor for comment. He's always denied any wrongdoing and says he was not aware of any of the things that Prince [SIC] -- that Jeffrey Epstein was accused of.

But his brother, King Charles, took the extraordinary step of stripping him of his royal titles and evicting him from his Windsor mansion as attention and pressure grew regarding his links to Jeffrey Epstein.

Democrats have said that they should have Andrew Mountbatten-Windsor testify before the U.S. Congress.

MADOWO: And this is all so that his victims can have some closure.

Larry Madowo, CNN, Nairobi.

(END VIDEOTAPE)

SANDOVAL: Xi Jinping calling for China's currency to achieve global reserve currency status. Hear why some analysts are calling his vision a pipe dream.

Stay with us. We'll be right back.

(COMMERCIAL BREAK)

[00:33:42]

SANDOVAL: Welcome back. I'm Polo Sandoval in New York, and these are today's top stories.

State media reporting that the Iranian supreme leader is warning that the U.S. attack -- a U.S. attack from the U.S., would spark a regional war.

U.S. President Donald Trump responded that, if the countries do not strike a deal, the world would find out whether Ayatollah Ali Khamenei is right about war.

President Trump says that Iran is, quote, "seriously talking" with the U.S. about its nuclear program.

At least 12 miners have been killed in a Russian drone strike on a bus in Southeastern Ukraine. Their employer says the bus was taken the workers home after working at a coal mine, and the strike was part of a larger attack on its operation in the region.

And this strike came just hours after a separate Russian drone attack on a maternity hospital, which injured at least six people there.

The Rafah Crossing, that crucial lifeline for Palestinians in Gaza, is expected to reopen partially on Monday after nearly two years of being closed.

Israeli authorities say that the crossing will only be open for the limited passage of residents only.

The reopening marking the conclusion of the first phase of the U.S.- brokered ceasefire deal.

Xi Jinping has a bold new vision for China: to raise the yuan to global reserve currency status.

[00:35:07]

China's leader outlining his vision in a piece for his ruling party's publication. His plan includes a, quote, "powerful central bank" and other institutions to make Beijing competitive in the global financial market.

The president's coming -- comments, they actually come as investors are rethinking their exposure to dollar assets. Just last week, the U.S. dollar hit a four-year low and President Trump announced his new pick to lead the U.S. Federal Reserve.

So, let's discuss all this and head over to CNN's Kristie Lu Stout, joining us live from Hong Kong.

Kristie, it's great to see you.

Xi Jinping, he's openly challenging the U.S. dollar.

KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR/CORRESPONDENT: Yes.

SANDOVAL: Why is that?

STOUT: You're right. This is a very interesting development, Polo. You see the Chinese president, Xi Jinping, openly challenging the U.S. dollar with this desire to build a, quote, "powerful currency."

In fact, he's making this call for the renminbi to become a global reserve currency.

Now, this idea is not new. In fact, the Chinese leader made a speech about this two years ago in 2024. But over the weekend, there's this Chinese Communist Party commentary piece that was published on "Qiushi (ph)," which was based on that 2024 speech by Xi Jinping, re-upping the idea and bringing it out to an ever-wider audience.

And this is what Xi said. Let's bring it up for you. Saying this, quote, "China should have a powerful currency, widely used in international trade, investment, and foreign exchange markets, holding the status of a global reserve currency," unquote.

Now, the timing of this publication is interesting. It comes amid ongoing U.S. dollar weakness. In fact, the U.S. dollar last week hit a four-year low.

It also comes amid ongoing trade tensions between the United States and its trade partners, and that upcoming shift in leadership at the top of the U.S. Federal Reserve.

But let's be real here. You know, China does have a limited role in global reserves, which is absolutely dominated by the U.S. dollar.

But the Chinese currency is gaining ground. In fact, the renminbi is now the world's second largest trade finance currency on the back of extremely strong trade volume.

But when you ask the experts, analysts out there about Xi's goal, it's a bold one. Is it achievable? And they say not right now, because China does not have the infrastructure to support this, quote, "powerful currency."

In fact, this is what we heard from Scott Kennedy of CSIS. He writes, "impossible without opening the capital account, And China won't do that. So no more than a pipe dream," unquote.

And then Bonnie Glaser of the German Marshall Fund elaborates further with this. She says, quote, "For the renminbi to attain global reserve currency status, China will need to have an open capital account and full convertibility. Is Xi ready to implement those changes? Probably not, but the ambition is clearly there."

Yes, indeed. The ambition is clearly there for China to have a greater role in trade and for China to have a greater role in foreign exchange.

Back to you, Polo.

SANDOVAL: So, in the face of those challenges that you lay out, if China, in essence, revives its currency, making it more freely convertible, doesn't that mean more expensive Chinese exports, though?

STOUT: That, in theory, yes. And many people have pointed out that is a potential risk for China, a reason why China does not want to make the renminbi fully convertible. Because you could see a surge in the value of the yuan and make Chinese experts [SIC] -- Chinese exports more expensive.

But analysts also point out a couple of factors. No. 1, China would be able to absorb any sort of fluctuations in any modest appreciation to the renminbi.

And also, they point out, too, the sheer scale of its manufacturing capacity. Even with a slight uptick in the value of the yuan, the prices of Chinese exports will be very competitive and will be lower than that of its rivals.

They also point to the example of Japan. We all know that the Japanese yen has been under immense pressure for the last few years. And guess what, Polo? The Japanese yen, in the last few years, every year has notched a trade surplus five years in a row.

Back to you.

SANDOVAL: Absolutely fascinating. Another live report from CNN's Kristie Lu Stout. Thank you so much, Kristie. Appreciate it.

STOUT: Thank you.

SANDOVAL: Still ahead here on CNN NEWSROOM, it is the biggest night in music. We'll be breaking down the biggest moments and the wins from the 68th Grammy Awards that just wrapped up.

(COMMERCIAL BREAK)

[00:44:13]

SANDOVAL: The 68th Grammy Awards ended just a little while ago. And the biggest winner of the night, Kendrick Lamar, celebrating the success of his song "Luther," featuring Sza, off his album "GNX."

He went into Sunday's ceremony with nine nominations and took home trophies for Record of the Year, Best Rap Album, among others.

The award for Best New Artist, that went to Olivia Dean, whose summertime hit "Man I Need" went viral. It gave the London native her first Billboard Hot 100 hit, currently sitting at No. 2 on the charts.

And the night's biggest award, Album of the Year, that went to Bad Bunny, as he got quite emotional after he was awarded that, going on to then head to the stage, no doubt giving him even more drive and energy as he prepares to headline the Super Bowl halftime show next week.

[00:45:03]

Joining me to break down the biggest moments of the night is entertainment journalist Michael Musto.

Michael, it's wonderful to see you again. Welcome back to CNN.

MICHAEL MUSTO, ENTERTAINMENT JOURNALIST: Nice to see you. Thank you.

SANDOVAL: So, let's start on -- on one of those last notes there, Bad Bunny starting his first acceptance speech of the night with "ICE out," his words. What did you think of the tone that he struck as he condemned recent

actions of immigration agents? And then, in a subsequent acceptance speech, even seemed to dedicate his award to migrants?

MUSTO: I welcome -- I welcome the politicization of these award shows, because I feel these are famous people with a lot of sway over the public, and they can influence them.

I also happen to agree with him that ICE is a bunch of federal thugs, basically, who cover up their faces and take people off the street without enough regard, really, for due process when it comes to their handling of immigrants and protesters, as well.

So what Bad Bunny just came out and said was "ICE out." And a lot of the celebrities there, including Justin Bieber and his wife Hailey, were wearing "ICE Out" buttons. That was a preplanned motto for the night.

And I also felt that Billie Eilish --

SANDOVAL: Yes.

MUSTO: -- if I could jump ahead --

SANDOVAL: Yes, please.

MUSTO: -- also joined the brigade of "ICE Out," but she invoked a four-letter word. She and her brother won for Best Song for "Wildflower," and she said that there are no illegal people on stolen land. And ICE has got to go.

SANDOVAL: Right. Now, I had to look up some videos online, since it was bleeped out -- bleeped out during the broadcast, to hear exactly what she said. She certainly had a very choice -- choice set of words directed at that federal agency.

You mentioned Billie Eilish again, and her win for "Wildflower." I mean, talk about an upset. Were you surprised that it beat "K-Pop's Demon Hunters" -- or "K-Pop Demon Hunters," I should say?

MUSTO: No, because I'm terrible at predicting, but I like the way the Grammys this year kind of showered -- they showered the love.

I mean, Bad Bunny won "Album of the Year." Kendrick Lamar won "Record of the Year." And Billie and Finbar [SIC] -- is his name "Finbar" -- won for Song of the Year.

I really think some year Kendrick Lamar has to win Album of the Year. I feel he's been robbed a few times. There were times when they just said, Oh, let's give it to Taylor Swift again.

Kendrick Lamar has elevated hip-hop. And he -- his speech said hip-hop is here to stay. It's largely thanks to him, and he deserves Album of the Year.

But he never seems upset. I give him that much.

SANDOVAL: You know, in terms of spreading the love, I loved the way they presented the nominees for Best New Artist, the way they had this joint performance from each one of those artists before they eventually handed out that award to Olivia Dean.

Which, by the way, awarded again, Best New Artist. And it seems that every year since 2018, that has gone to a female artist. Can you speak to how their talent has really dominated in the last several years?

MUSTO: Well, first of all, Olivia Dean spoke about being the granddaughter of an immigrant. So, she was on the bandwagon, too.

Like you say, that was an amazing array of talent. It really showed the fresh blood. Some of them have been around for a while, but it doesn't matter. They had a breakthrough this year.

And my favorite was Addison Rae, who really came through the ranks of TikTok. She was an influencer. And people are mad. How could a TikTok influencer make it? It doesn't really matter anymore what venue you take, as long as the talent rises to the top, and it does.

Congrats to Olivia Dean. There are so many women that are the new talent. And to me it signals a change in the music industry: that the doors are more open for women than they used to be.

A woman doesn't have to be the lead singer of a rock group of all men to get noticed. She could be a solo artist. And I thought it was just a dazzling array of talent that they showed; much-needed new blood in this industry to keep it alive.

SANDOVAL: Yes. On the tone of remarkable female artists, I mean, I was so glad to see Reba McEntire taking the Grammy stage. I believe that was her first time, too. That was something that was long overdue. It was a touching tribute, as she was paying tribute to those who we've lost in the last year.

Finally, a few, maybe a few closing thoughts from you on what some of those performances that everyone's going to be talking about on Monday.

I was jotting some down as I was watching, maybe even dancing when Bruno Mars took to the stage. But Tyler, the Creator, what was going on, on the stage? Some sort of simulated car crash, an explosion.

I mean, what else are people going to be talking about in the next few hours.

MUSTO: Definitely that performance at the gas station. Also, Justin Bieber in his boxers --

SANDOVAL: Yes.

MUSTO: -- and socks. I thought he'd be a briefs kind of guy. I don't know. I did not need to see that many tattoos.

However, he has to try to, you know, reinvent himself and constantly be edgy. I think he's doing a good job.

[00:50:06]

SANDOVAL: Yes.

MUSTO: I loved Cher at the end, because she -- she kind of came onstage to do one thing, because she was also supposed to announce Record of the Year, and they had to summon her. Trevor Noah, the host --

SANDOVAL: Right.

MUSTO: -- had to summon her back on stage. And then she didn't want to leave. After Kendrick Lamar won his award, she didn't seem to want to leave. You've got to love Cher --

SANDOVAL: Yes.

MUSTO: -- no matter what she does.

SANDOVAL: Right, right, right. She can do no wrong --

MUSTO: But I mean, there were some --

SANDOVAL: -- even if she almost left us guessing.

MUSTO: There were tremendous performances. I mean, Lauryn Hill did a tribute to D'Angelo and also to Roberta Flack.

SANDOVAL: Yes.

MUSTO: There was a tribute to Ozzy Osbourne, who I met and was not the man who bit the head off of birds all the time. He had a normal, loving side.

And all the tributes, like -- like you said. Reba McEntire. It was a wonderful mixture of the classic and the newfangled. It showed the breadth of the entire music industry, in my opinion. And somebody like Chappell --

SANDOVAL: With a deeply political message.

MUSTO: Yes. And Chappell Roan looked unhappy, I think, because she thought, well, last year was more of my year, but I've learned to put on a smile and just pretend.

SANDOVAL: That's right. And look, Sabrina Carpenter had a moment on- stage, too.

MUSTO: Sabrina -- Sabrina was. She and the dove. But thankfully, Ozzy was not there to bite it. But she -- she's a tremendous, tremendous performer. She really is.

SANDOVAL: Yes. No, I enjoyed every minute of it. Michael Musto, always enjoy every second of our conversation, as well. You have a great week ahead. Thanks for all your analysis, as always. MUSTO: You, too. Thank you. Bye-bye.

SANDOVAL: All right. The Olympic flame, it has entered the final stages of its journey across Italy. And the countdown is on as it heads to Milan for Friday's opening ceremony. We'll take you to the host city for a preview of what you can expect.

(COMMERCIAL BREAK)

[00:53:29]

SANDOVAL: So, on Friday, the world will be turning its attention to Italy as the 2026 Winter Olympics get underway in Milan.

The competitions, they will be spanning eight sports and 15 different disciplines, including ice hockey, skating, my favorite curling.

CNN's Antonia Mortensen is in the host city with more on what you can expect.

(BEGIN VIDEOTAPE)

ANTONIA MORTENSEN, CNN SENIOR PRODUCER: There's a real buzz here in Italy as the Olympic flame makes its way to Milan, where just in a matter of days, the 2026 Winter Olympics are due to start.

The event will be held across eight different locations in Northern Italy, with main hubs here in Milan and the mountain resort of Cortina d'Ampezzo.

UNIDENTIFIED MALE: We just got here last Monday and already the city seems like buzzing from it. There's advertisements everywhere. Obviously, we're right behind one of the Olympic team stores, so, so far the city atmosphere has been great.

UNIDENTIFIED MALE: There's, like, party vibes. People are excited. We're excited, and I think the atmosphere is really good.

MORTENSEN (voice-over): Milan will host ice sports and the opening ceremony.

UNIDENTIFIED MALE: A milestone.

MORTENSEN (voice-over): In Cortina, we'll see the women's alpine skiing events, sliding sports, and curling. The glamorous mountain resort returning as an Olympic host more than 70 years after the 1956 games.

Sixteen venues have been built or upgraded for the games, though not without setbacks. The Milan Santagiulia Ice Hockey Arena faced serious concerns over its ice quality.

With the NHL returning to the Olympics after 12 years, players had warned that they wouldn't complete unless the ice met standards.

After a January test event, organizers now insist the rink is ready, even as some non-critical parts of the stadium remain unfinished.

The price tag for these games, around 4 billion USD. Officials hope that the investment in infrastructure from transport links to long- term facilities, will pay off for future generations, long after the medals have been awarded.

DOMENICO DE MAIO, EDUCATION & CULTURE DIRECTOR, FONDAZIONE MILANO CORTINA 2026: It's really important that the sport infrastructure that has been born in Milano Cortina will be a, really, legacy for our country.

But the big event like the Olympic Games have the impact of all community. It's a commitment to create a bridge with all communities, not only with the fans or sports stakeholders.

MORTENSEN (voice-over): Safety will be a top priority at the games, and U.S. security officials told CNN they've had teams here for two years, working with Italian authorities to protect American athletes and their delegations.

But news that ICE agency employees will assist U.S. security operations hasn't gone over well locally, prompting the Italian government to clarify their role as restricted within the U.S. diplomatic missions.

ANTONIO TAJANI, ITALIAN FOREIGN AFFAIRS MINISTER (through translator): We need to look at what the responsibilities of ICE actually are. If they come, they will come to cooperate, not out on the streets, but to cooperate with the police. Just as police forces from other countries do. When there's a major event, there has to be international cooperation among police forces.

MORTENSEN: And beyond sport, the region hopes to leave its mark, showcasing its culture, food, and of course, the unbeatable coffee.

The countdown is on here in Northern Italy, and the world is watching.

Antonia Mortensen, CNN, Milan.

(END VIDEOTAPE)

SANDOVAL: Thank you so much for joining us. I'm Polo Sandoval, New York. I'll be right back with you with more of your headlines on CNN NEWSROOM after this break.

(COMMERCIAL BREAK)