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Erin Burnett Outfront
Trump Awarded FIFA's First Peace Prize, Selection Criteria Unknown; New Details About Boat Survivors' Movements Before 2nd Lethal Strike; Inflation At Highest Rate In 20 Months, Consumer Spending Slows. Aired 7-8p ET
Aired December 05, 2025 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[19:00:24]
ERIN BURNETT, CNN HOST: OUTFRONT next:
Trump gets a peace prize. The ceremony complete with a red carpet and Village People performance. Why is the head of FIFA so determined to win over Trump?
Plus, breaking news. New exclusive details about that controversial boat strike in the Caribbean. Were survivors waving to surrender before they were killed by the U.S.?
And we'll take you to the hottest new spot in L.A., where people are waiting eight hours to get in, and how this particular story all started with "Everybody Loves Raymond".
Let's go OUTFRONT.
(MUSIC)
BURNETT: And good Friday evening. I'm Erin Burnett.
And OUTFRONT tonight, the peace prize. President Trump celebrating tonight what he calls one of the greatest honors of his life. And that is winning a peace prize presented by the soccer organization FIFA and its president, Gianni Infantino.
(BEGIN VIDEO CLIP)
GIANNI INFANTINO, FIFA PRESIDENT: And therefore, FIFA, the Federation Internationale de Football Association, awards the 2025 FIFA peace prize, football unites the world, to Donald J. Trump, president of the United States of America, in recognition of his exceptional and extraordinary actions to promote peace and unity around the world. Friday, December 5th, 2025. This is the certificate.
(END VIDEO CLIP)
BURNETT: And just to be clear, 2025 is the first and the only year that FIFA, a soccer organization, has given out a peace prize. Infantino, though, is one of Trump's biggest fans at today's World Cup event at the Kennedy Center, he literally rolled out the red carpet for Trump. He brought in even the Village People. Of course, that's the group that was performing at Trump's rallies and performed one of Trump's favorite songs, "YMCA".
And, of course, Infantino knows what Trump would catch his eye. The medal and the actual peace prize are both made of gold.
(BEGIN VIDEO CLIP)
INFANTINO: Mr. President, this is your prize. This is your peace prize. There is also a beautiful medal for you that you can wear everywhere you want to go.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm going to wear it right now.
INFANTINO: Okay, let me hold are. Fantastic. Excellent.
(END VIDEO CLIP)
BURNETT: Now, a gold statue, where perhaps could he have gotten that idea? Could it be from the new gold sign and decor that rolled out today outside the Oval Office? Or maybe, actually, the idea came from Apple CEO Tim Cook.
Remember when he brought in a plaque with a 24-karat gold base to the White House? Or maybe the idea came from the president of South Korea who gave Trump a gold crown. Or maybe it was from Japan, and the gold golf balls that they gave Trump. Or maybe Infantino just remembered that Trump really wanted this prize and this gold statue from his last visit to the White House.
(BEGIN VIDEO CLIP)
INFANTINO: And since you are a winner, of course you can as well touch it. It's pretty heavy --
TRUMP: Can I keep it?
INFANTINO: -- for you. Well, you can. Can I give you --
TRUMP: That's fine. That's a beautiful piece of gold. I will say that's beautiful.
(END VIDEO CLIP)
BURNETT: So he found a way to give him his own version of that.
Today. Infantino, of course, and Trump are no strangers to each other. Infantino attended Trump's inauguration. He rent space in Trump Tower, and he also met with Trump during the president's trip to Egypt.
Now, a number of FIFA's vice presidents as part of the FIFA global governing board, have expressed concerns at the lengths that Infantino is willing to go to please Trump. This is reporting from both politico and "The New York Times".
But when it comes to Trump's brand-new peace prize, CNN is reporting that it's not even clear how the winner is chosen. Sounds like sort of a silly thing to even have to say in the context of everything I laid out, but the point is, they're not even trying to put out a process or anything like that.
Trump was asked about his prize, of course, in the context of Putin openly mocking his peace talks with Steve Witkoff and Trump's son in law Jared Kushner, saying even he grew weary of the discussions as they dragged on. And tonight, of course, Putin is again striking Ukraine. And then there's the context of Trump's strikes on boats and the promise of land strikes and multiple South American countries.
The context of the peace prize, Trump was asked about this today.
(BEGIN VIDEO CLIP)
KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT: What would you say to people who say that prize might conflict with your pledge to strike Venezuela?
TRUMP: Well, I think the peace prize -- I mean, I settled eight wars. I don't know that I'm getting it. I haven't been officially noticed. I've been hearing about a peace prize.
(END VIDEO CLIP)
BURNETT: Okay. Trump changed the subject when asked about his threats to Venezuela, something, of course, he's been repeating multiple times as his administration has doubled down on taking out alleged drug boats in the Caribbean.
[19:05:04]
(BEGIN VIDEO CLIP)
TRUMP: And if we have to, we'll attack our land also, just like we attack on sea. And there's very little coming in by sea. We're going to start doing those strikes on land, too. You know, the land is much easier. It's much easier. And we know the routes they take.
(END VIDEO CLIP)
BURNETT: Land strikes and, of course, the allegations of a war crime, specifically on that double tap strike of that boat. There are serious issues facing the president on that front tonight, but they are things he is choosing not to listen to or talk about. Instead, this is what he is surrounding himself with.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Thank you for giving us good stories that we can tell for the American people.
UNIDENTIFIED FEMALE: Thank you for fighting for our country.
UNIDENTIFIED FEMALE: Thank you for allowing me to be at this table.
UNIDENTIFIED MALE: Thank you for allowing me to be part of this team. For people here who are focused on winning.
UNIDENTIFIED FEMALE: Even you kept the hurricanes away. So we appreciate that. Thank you for letting us get up every day and have a purpose.
UNIDENTIFIED FEMALE: The economy is coming back thanks to your leadership.
UNIDENTIFIED MALE: Thank you, Mr. President, for being willing to take a bullet for this country.
UNIDENTIFIED MALE: The greatest cabinet ever for the greatest president ever. And I, as I sit here today, I can't be more proud of how you did it. Sir, you've created the greatest cabinet. It is a joy to be at this table.
(END VIDEO CLIP)
BURNETT: Well, there you have it. And everyone is here with me now.
Paul Rieckhoff, President Trump getting a peace prize, not the peace prize, right? And I don't think there's really any effort by FIFA to make this anything other than what it is. How does it sit with you, how all this is playing out?
PAUL RIECKHOFF, FOUNDER & CEO, INDEPENDENT VETERANS OF AMERICA: Well, I thank you for having me on the greatest panel in the history of the world.
BURNETT: Does it give you joy to be sitting here tonight?
RIECKHOFF: Tremendous joy. And I'm so infinitely grateful. And thank you for stopping hurricanes.
I think it's ridiculous. It's shameful. It's beneath the office. It's gross.
It's also dangerous because I think it's a very effective manifestation of the growth of his propaganda machine. He continues to expand his reach to the country and to the world, and basically battle the truth. I mean, he's getting a peace prize that he made up for himself or was made up for him while he's simultaneously hitting alleged drug boats and threatening war on Venezuela.
And he's also continuing to expand his reach because this was on Fox Sports, that's not insignificant. He continues to go back to Fox Sports. He went there for the NFL. He understands that culture and sports are a way to get to more people. He's doing it while he has own and he has Newsmax, and now he has a propaganda press corps at the Department of Defense that's pushing this message.
And it's all coming together on the biggest platform in the world. FIFA itself has its own corruption problems, but we're going to have the entire world watching us, and the entire world knows about this. And I think approaches it with skepticism. It looks like the White House is for sale. I mean, this war was so
ridiculous, he actually put it on himself, right? Like no one put it on him. He picked it up and put it on himself.
And I think it's making a mockery of the office and of our country. On what might be the biggest stage he's ever seen. This is going to be like the Berlin Olympics.
BURNETT: When you talk about FIFA, I mean, soccer, right? You know, I mean, around the world, I mean, obviously, I'm sure everyone watching knows this, right? I mean, that is the biggest stage that there is, as Paul says.
SABRINA SINGH, CNN GLOBAL AFFAIRS COMMENTATOR: And FIFA also brings together so many different people from different backgrounds and traditionally sports are apolitical. And it's actually where folks from different sides of the aisles, different nationalities kind of leave their differences at the arena and just enjoy the game for what it is.
And so, you're seeing not only a politicization that goes deep within our country and, and partisan divides. And I think a politicization of the military, but also of sports. I think just the fact that FIFA rolled out this, you know, 2025 peace prize, I mean, who's going to be nominated next year? Like, will there even be a second?
BURNETT: Could people -- anyone watching, could anyone imagine, you know, Roger Goodell from the NFL coming out and giving Trump a peace prize from the NFL? Right? I mean, such a thing is absurd.
SINGH: I think it's so absurd. And I think to what Paul was saying, it is so embarrassing that so many people are doing this. And to see, you know, you played that clip of all the cabinet officials going around thanking Donald Trump for, you know, just being in the room. And it's like, you know, if Joe Biden, Barack Obama, Bush did this, I mean, we'd be ridiculed, we'd be ridiculed for that. And that's just not a serious meeting.
BURNETT: Well, none of them, I mean, and I guess none of them would have done that.
I mean, Shelby, from all your reporting -- obviously, you're reporting on the White House for Semafor, you know, you have seen how hard the head of FIFA has worked to ingratiate himself with Trump, right? I mean, and actually, as you point out, Infantino actually got an award himself from Vladimir Putin back in 2019, at which point he said it is only the beginning of our fruitful cooperation and interaction. So, he knows how to use a moment like this.
SHELBY TALCOTT, SEMAFOR WHITE HOUSE CORRESPONDENT: Absolutely. And he's been cultivating this. He began to be close with President Trump in his first term. So, this has been really years in the making.
And I think part of the reason that you're seeing this flattery is A, because he's seen that this works, right? I've talked a lot about all of these world leader meetings. And all of these world leader meetings are they're watching each other and they see what works. They see what doesn't work, right? They see when the Ukrainian president went and was a little bit hostile towards the president, that did not end up as a very good meeting.
[19:10:03]
So, you've seen everybody who meets with Trump and becomes friendly with Trump. They adjust how they act towards him. And I think one of the reasons that FIFA is getting so close to Trump is also because, as you said, this is a huge event and there is so much going on in the world as it relates to the United States. When you're talking about Canada and Mexico, there are the tariffs. There is President Trump, who is -- who has said that he might go into Mexico to bomb the drug cartels. There's all of these things going on. And the closer that FIFA can get to President Trump, the easier it will be for them to make sure that this event goes on smoothly.
BURNETT: And the cognitive dissonance is really quite incredible, Paul. It's also, when you think about it, I mean, just the moment that we can all say there's no one watching this and I don't care what your political point of view is, who doesn't see this for what it is. The head of FIFA wanted to, you know, make Trump happy. So, he gave him a peace prize and a bunch of gold.
So did the crown from South Korea, the golf balls, Tim Cook statue. All of these people know what they're doing.
RIECKHOFF: They do, and they should be ashamed. I mean, it's obvious that they're bending the knee because they want favor or they see a business interest. But I think it's really important to understand this is a very shrewd and effective strategy by Trump to politicize and manipulate sports. 9/11, he didn't go to 9/11 memorial. He met with the New York Yankees.
A week or two ago, he was at an NFL game. This weekend, he'll be at the Army-Navy game, which will be broadcast on CBS to millions of people.
He understands that sports, UFC is another example. He keeps doubling down on sports because it's a way to expand his reach. It's a way to get to people who aren't as involved in politics and aren't watching the news every day, and its working because its normalizing. It's normalizing things like this to people who might not be tracking.
BURNETT: Does that work? I mean, do you see, is that part of a strategy that they're doing that they somehow believe will in some way expand his base?
TALCOTT: I think that they saw that that's exactly what happened in the 2024 election. I covered President Trump across the campaign trail, and he went to a ton of sporting events. He went to the UFC events. He went to the football events. He went to college campuses.
And that works because you're targeting a lot of voters who are not necessarily, you know, going out and voting in every single election, but they like that aspect. They like that a president is coming there. And so that was really successful.
When I talked to Trump's campaign aides, they point to that as one of the main reasons that he was successful in expanding the base. And so he's absolutely continuing it.
SINGH: But it works, but also to the extent that I think we have to take a step back and realize Trump's polling is the worst its ever been. And in theory, he's not going to be on the ballot in 2028. So, he has a lot of rehab to do on his own reputation.
I think going to these events is a -- I mean, that that is smart politically. That is a smart thing to do. But also, I mean, he did that during the campaign, and yet still his numbers are so low.
And that's also because he's not talking about issues that Americans care about. I think, you know, seeing this peace prize, someone that's struggling to buy groceries, someone that's, you know, maybe juggling two or three jobs, and they're looking at this and they're like, well, what about gas prices? What about grocery prices? I actually voted for you because you came into office promising that you were going to lower them. And you haven't.
RIECKHOFF: And stagecraft, I mean, he's the master of that, right? And he keeps ensuring that the crowd supports him, right? When he went to Yankee Stadium over 9/11, he knew he was going to get a favorable response. This weekend, he's going to be at the Army-Navy game. It's going to look like the entire crowd is supporting him and cheering.
BURNETT: And we'll see the response, yeah.
RIECKHOFF: He's setting up the conditions to make him look much more popular than he is.
BURNETT: Right, right. And I'll note on 9/11, he also went to an event at the Pentagon, then of course, up to the Yankees, as you say.
But when we talk about, you know, the context here, the peace plan from Russia, okay, that came out today, Trump has a 33-page document that lays out what is Americas new national security plan. And, you know, there's details in there. But then there's this overarching reality, which is a pretty stunning thing that for Americans to realize, it blames European officials for blocking American efforts to end the Ukraine war, as the Trump administration sees it, and specifically calls for reestablishing strategic, strategic, I'm sorry, stability with Russia.
Sabrina, what do you make of the timing of this?
SINGH: Well, the timing, I mean, it's quite interesting that it comes on the heels of this administration presenting a 28-point peace plan to Ukraine that was basically a complete capitulation of the country. And so, by some of what is in that national strategic strategy, it's really setting up Russia not to be the aggressor, but actually to be someone that maybe the United States could potentially work with.
And I thought that was really stark, and that was something that was very different from the Biden administration, where we did see Russia as an aggressor, where we did see Russia as an entity that was a threat to our national security and to put the blame on European countries and basically say that you're hindering peace. I mean, it's like, give me a break. Like Russia invaded Ukraine and it's a threat not only to Ukrainian sovereignty, but European national security and, frankly, American security interests. And so, it was disturbing.
BURNETT: What's at stake?
RIECKHOFF: Global peace. I mean, rewarding our enemies. I mean, this is the latest item on Putin's wish list.
[19:15:02]
I mean, Putin couldn't write something --
BURNETT: Right, reestablishing strategic stability with Russia.
RIECKHOFF: It's compromising our alliances in Europe, it's undermining NATO. It's selling out Ukraine again. And I think continuing to lack focus on focus on China, which is still the biggest adversary on the chessboard.
So, this is great for our enemies and bad for Americas national security. And consistent with what he's been doing throughout his administration so far.
BURNETT: Right.
SINGH: And just on that, just on that note, just to piggyback on that, we're pulling resources out of the Indo-Pacific, and we are concentrating more on the homeland, and that's fine. I think we can have a conversation about the Western hemisphere and, and, you know, beefing up some of our capabilities here.
But the fact that you're going to pull some of those capabilities out of IndoPaCom and move them, whether it be to the Middle East or in SouthCom area of responsibility, that is going to impact China. And China is watching it all. And, you know, we have to think about what their next move is.
BURNETT: Any open oxygen is immediately consumed.
SINGH: Right.
BURNETT: All right. Thank you all very much. I appreciate it.
And next breaking news, we are reporting tonight that the alleged drug boat that was hit a second time may not have been heading to American shores at the time it was hit. And the survivors from the first strike were actually seen waving. We'll tell you exactly what we're learning about why and for what.
Plus, stocks up. Wall Street betting big on A.I. But IBM's CEO has come out and said something really important. He said the math on these massive A.I. data centers doesn't add up. Plus, new details tonight about the D.C. pipe bomb suspect as he makes
his first court appearance. What he told investigators tonight.
(COMMERCIAL BREAK)
[19:20:54]
BURNETT: Breaking news, waving their arms. Sources telling CNN the admiral who formerly called for the second strike on the alleged drug boat in the Caribbean, told lawmakers that the survivors were waving at something in the air before the second strike, although they say it is unclear whether they were surrendering or asking a U.S. aircraft for help.
We are also learning that Admiral Bradley told lawmakers that the boat was going to meet a larger vessel heading to Suriname. Suriname is a small South American country east of Venezuela, and that may matter because U.S. Drug Enforcement officials tell us that drug trafficking routes via Suriname are primarily destined for European markets, not the United States.
Of course, President Trump has explicitly said that this boat was an imminent threat heading to the United States, saying, quote, the strike occurred while the terrorists were heading to the United States.
And all eyes right now are on the embattled defense secretary. Secretary Hegseth is preparing to address the Reagan National Defense Forum as we speak.
And Seth Jones is there at the event where the secretary will appear momentarily. Seth also served as advisor to the commanding general of U.S. Special Operations Forces in Afghanistan.
Of course, as many of our viewers know, Seth, I know that you have a lot of questions for Secretary Hegseth. Not just about that double tap strike, but, of course, about all of these strikes, as we know, what, 22 or 23 of them thus far. What do you want to hear from Hegseth tonight?
SETH JONES, PRESIDENT, DEFENSE & SECURITY DEPARTMENT, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: Well, Erin, I think the most significant question is what is the strategy that the U.S. is pursuing in the region? You know, the national security strategy that was just released today talks about strategy as being about ends and means. So, what are the ends here? What are we doing? What is our objective in conducting these strikes? How do we know that we're winning or losing? What is winning even mean?
And I say that in part because, you know, my involvement in operations against al Qaeda and the Islamic State, we were involved in imminent threats against people that were plotting attacks like 9/11 that were in American subway systems. And so, what is the -- what's the end goal of all of this stuff?
And the second question, really is, is what -- is the imminent nature of the threat? And I think that is that that is not clear. And I think the discussion that that Admiral Bradley had with, with house and, and congressional members raised additional questions about that issue as well.
BURNETT: Which I realized would apply to all strikes. But I guess even in the case of this specific strike separate from the fact that there was a second strike itself would be, well, if this boat was actually heading to a boat that was going to Europe, what is the imminent threat to the United States, right? I mean, on a very specific legal basis there is not an obvious answer to that question.
But, you know, when you talk about your experience, Seth, as special, as advisor for U.S. special operations forces, making those decisions in Afghanistan there are many members of the military, obviously, that you speak to daily as part of your work. Now, how conflicted do you think they are right now carrying these boat strikes out?
JONES: Well, I think there are a lot of people that are deeply conflicted right now. There are real questions about what are we doing right now? What is our strategy? And in particular, if you're putting in the hands of some of our best operators, life and death situations where they're killing people, and its not clear to what degree the individuals they're targeting are actually are they criminals? Are they terrorists? Are they on the verge of committing imminent threats acts in the United States?
You know, when a U.S. and special operations and CIA assets took out Saleh al Somali or Rashid Rauf on the Pakistan side of the border, they were involved in actual plots and attacks inside the United States.
[19:25:00]
And we know that that was documented. What -- what is the evidence right now that the individuals that we are targeting present an imminent threat? That intelligence needs to be made public, certainly needs to be made public to members of Congress. And that's just not clear right now, Erin.
BURNETT: No, no, it isn't. In fact, what they seem to say is that if you're -- if you're dealing drugs because those drugs could eventually kill some people who might consume them at some end point that that would justify this. I mean, that's at least all that's been put out there. I don't know, to your point, whether they're going to try to say there's anything else.
You also know Admiral Bradley, who is the officer who is actually in command of that specific strike. Do -- and he was the one who testified in Congress. Do you have any doubt that that whatever he shared with lawmakers is what he truly believes?
JONES: I believe Admiral Bradley is a principled individual with a very distinguished career in special operations, so would fully trust his explanation to lawmakers. Absolutely.
BURNETT: All right. Thank you very much, Seth. Great to see you. And Seth, of course, will be -- will be there. And we'll be listening to what the defense secretary has to say in his speech this weekend. Thank you, Seth.
And I want to go straight now to Democratic Congressman Ro Khanna, who's on the House Oversight Committee.
Congressman, a lot to talk to you about. And you heard Seth Jones talking there about what he sees as a clear distinction about what was known, what were the ends and means and the reasons for strikes that he was a part of in places like Afghanistan.
In this case, we have now learned today a few new things. The two survivors didn't radio for us. It didn't appear to have a radio. They may have been waving for help, although it's unclear whether it was for surrender or for asking for help from an American plane. This is according to the testimony to Congress, according to sources. And that that boat may not have been heading to the United States at all.
We also are learning, though, that a JAG officer approved the strike.
Does all of this add up to you?
REP. RO KHANNA (D-CA): Well, there are two different issues here, Erin. One which you raised. It's not just the second strike that may have been illegal. The first strike itself may have been illegal.
We have not been briefed as an Armed Services Committee on what the standard is that is triggering the military to kill on our behalf. They are killing people on behalf of Americans, and we don't know what standard they're using to do that. The only explanation has to be from Pete Hegseth. He needs to come before the Armed Services Committee, senior Republican, senior Democrats have called for it, and he owes the nation a full, transparent explanation.
BURNETT: So just hours after the executive producer for the Charlie Kirk show posted this, congressman. He posted every new attack aimed at Pete Hegseth makes me want another narco drug boat blown up and sent to the bottom of the ocean.
Hegseth responded to that post saying, "Your wish is our command, Andrew. Just sunk another narco boat".
And in the context of the flipness with which he addressed this, I spoke to your colleague Mike Turner, Republican congressman, earlier this week, about that Hegseth's use of Franklin the turtle children's book to mock people who are upset about the strikes that he put out, that's the picture he posted.
And Congressman Turner said, and I quote, I'm very disappointed. And I thought it was very inappropriate that a cartoon would be used in this manner of something that's obviously very serious. Now, that's what he said publicly.
I'm curious, Congressman, about what you're hearing behind the scenes from your gop colleagues. You know, some of them who are your friend and you can have private conversations. What are they saying about Hegseth?
KHANNA: Well, Congressman Turner has been very principled on this issue, and he's echoed the concerns of Congressman Bacon and many other senior Republicans. And they say that you can't just kill people without a standard. That's not the American way of doing business. If we do that, we're giving license to Putin. We're giving license to Xi Jinping.
America is different because we follow the rule of law, because we follow the rules of war. One senior Republican senator, I won't mention his name, one senior Republican said that the Hegseth and others are talking about killing these boats like they're in a video game.
It is disgusting to have that kind of cavalier attitude towards human life in a nation like ours, which believes in faith and the dignity of every person. This calls for Hegseth to come before the nation and explain himself, and he should not be deflecting the blame on Admiral Bradley. That is a cowardly behavior, and that's what he's doing. And that is really offended a lot of people on the armed services committee that he's cynically trying to make this Admiral Bradley's fault, to absolve himself of any responsibility. People aren't buying that.
BURNETT: This topic is obviously crucial, but I don't want to not mention one other thing when I'm talking to you, Congressman, because I don't want this to get lost. And I know neither do you.
[19:30:00]
Sixteen days is how many days it's been since you and your colleague, Republican Congressman Thomas Massie, got that bill passed, right, for Trump had to sign it because every single Republican but one joined you. The clock is ticking now.
Do you know what they're doing to those files right now?
KHANNA: I assume they're following federal law and preparing for a release. The survivors expect that. I can tell you that having talked to the survivors and being in touch with the survivor's lawyer.
Thomas Massie and I are in regular touch. Expect that. We asked to meet with Attorney General Pam Bondi. We have not heard, but we will be raising this issue with the justice department until those 16 days, and we expect to have a full release, which is required by federal law.
BURNETT: All right. Congressman Khanna, thank you very much. I appreciate seeing you on this Friday night.
KHANNA: Thank you, Erin.
BURNETT: All right. And next, stocks are up, even though we've learned spendings down. Inflation is up, too. What is going on with this disconnect. And the suspect in the Washington pipe bomb case making his first
court appearance as we're now learning he told the FBI that he believed the 2020 election was stolen.
(COMMERCIAL BREAK)
[19:35:54]
BURNETT: Tonight, inflation spiking in America, rising to its highest level since April 2024. And what is the impact of the fact that prices keep going up and up? Americans are cutting back on spending. Consumer sentiment remains at near record lows. That's the impact.
But when you look on Wall Street, you don't see any evidence of this. You know, overall the Dow, the Nasdaq, the S&P all closing higher today. You got records everywhere continuing a stunning rally that has seen double digit gains for the year.
Despite all of these economic headwinds. I didn't even mention tariffs.
OUTFRONT now, two regulars, Dan Ives and Jim Bianco.
And, Jim, you know, I know we've talked about this before, but I guess -- I think I use the term cognitive dissonance earlier in the show, in this particular world of the economy, it is -- it is screaming the cognitive dissonance, right? Some people are doing really well. Stock market, anything related to tech, A.I. -- I mean, it just seems there is no limit to it right now. But you've got Americans struggling to keep up.
You've got inflation that has, over time, built to such a level that I think years ago, none of us would have thought we would have been in this position, right? It would have been hard to even imagine it.
I'm just wondering, Jim, how long do you think both things can continue to be true? Some of this economic pain and this record after record on Wall Street.
JIM BIANCO, ECONOMIC ANALYST: I think it can continue for a while. We refer to it as the K-shaped economy. What the economy is being driven by. When we look at the economic statistics, is the top of the K, the top of the -- of the income spectrum.
They're getting -- they're seeing a home prices go up, which we call, you know, the affordability problem. They're seeing new highs in the stock market. They're spending money and the GDP and the retail sales numbers all look very good.
The bottom of the K. And let's remember, bankrate.com does an annual survey, 59 percent of the public says they cannot come up with $1,000 in an emergency. They're just seeing that prices CPI is up 27 percent since 2020. But wages are only up about 21 percent over the time period.
So, they're only relying on paycheck to paycheck. And they're seeing that their paycheck buys them less and less. And that's the difference in this so-called K-shaped economy, is that we've got to get prices under control. Otherwise, the anger is going to just continue on the bottom end. And if the stock market continues to rally, it's not going to be viewed more and more as an indicator of the broader economy.
BURNETT: Dan, I mean, how long do you think this can continue? And by the way, I know I still have to say my jaw hits the floor. When you think about prices going up 27 percent in just the past five years. I mean, that is -- that is epic. But, Dan, do you -- do you share Jim's view that this can continue for a while?
DAN IVES, GLOBAL HEAD OF TECHNOLOGY RESEARCH, WEDBUSH SECURITIES: Yeah. Look, I mean, Jim raises great points as always. I mean, and we've talked about a lot on the show. Look, this is an A.I. revolution. It's the fourth industrial revolution that's being led by us. I mean, U.S. is ahead of China for the first time in 30 years when it comes to tech.
So, I think what's pulling out here is it's a tech led market that you're continuing to see in terms of leaders from Nvidia and Microsoft and others. Uneven clearly in terms of the broader economy, more pressure on the Fed, especially going into next week, and a new Fed chair.
But the reality is, I think this is a tech bull market that goes on, you know, we think for another few years.
BURNETT: So, another few years, I mean, in that and obviously we've got midterms coming through. So, I know that's a significant thing to say.
Jim, though it's interesting when dan talks about the revolution, right, that we're going through. And I know you've talked about it, you've actually likened it in terms of the impact on the market from this to what we saw with the railroads over a century ago. It is this massive spending on A.I. and in that context, Jim, I saw something this week that flagged in the middle of the night because I'm up, you know, know, surfing the optimistic side of X.
And I see this post from the CEO of IBM, Arvind Krishna. It's a post about something he said. He was asked about these A.I. data centers, right. And the trillions of dollars being thrown at these data centers.
[19:40:01]
And he said that this money to him does not add up. Here's what he said.
(BEGIN VIDEO CLIP)
ARVIND KRISHNA, IBM CEO: It takes about $80 billion to full -- to fill up a one gigawatt data center. If I look at the total -- these things, the total commits in the world on this space of the AGI seem to be like 100 gigawatts, at least announcements. That's $8 trillion of capex. There's no way you're going to get a return on that, is my view, because $8 trillion of capex means you need roughly $800 billion of profit just to pay for the interest.
(END VIDEO CLIP)
BURNETT: I mean, it was a sobering comment to come from someone like him who's looking at this from the math and looking at the actual data centers.
BIANCO: It is. But I think there's a couple of things we have to put in place. I completely agree with Dan. This is a fourth generation or fourth industrial revolution.
And just like, if you will, the third, which might have been the Internet, we did have a peak. We did have a big correction from 2000 to 2002. But when it was over with, we still had the Internet.
BURNETT: Yeah.
BIANCO: And then that bred a whole another wave of technological advances, which we know as Meta and Uber and Airbnb and Amazon and Google and the like. And I think that this is the same thing here. Everybody's got to play this game because the loser is going to be somebody who's not playing.
But if you're not, you know, an investor in this, what are you -- what you're going to be left with A.I. at the end of it. And that's going to be a big positive for everybody.
BURNETT: So, Dan, I know you're all in on A.I. You've been doing work also with the open A.I. founder Sam Altman, and the talk about a bubble I know you believe is way overblown.
And this is a separate question from what Jim just said, right? Which is that even if there is a bursting of some sort of a bubble, at some point we're still left with A.I. do you question, dan, the use of the word bubble at all?
IVES: Yeah. I mean, look to me, 3 percent of companies in the U.S. have gone down the A.I. path. So it's still early. We think about it from a baseball. I mean, it's top of the third inning in a nine inning game. And globally, you're still in the early stages and more and more going toward the A.I. revolution.
So, the reason I don't view it as a bubble is the second, third, fourth derivatives of big tech, they're just starting to play out -- the data center, the three to four trillion being spent.
And I can -- look, we've said -- I mean this is an A.I. party. It started 9:00 p.m. It's now 10:30 p.m. Party goes to 4:00 a.m.
And the bears watch that party through the windows from the outside.
BURNETT: And the people who stay up all night, I guess the question is, do they regret it the next morning?
Thank you both very much, I appreciate it. Good to talk to you. And next, new details tonight about the man accused of planning pipe
bombs outside the DNC and RNC headquarters. We are now learning that he told the FBI that he thought the 2020 election was stolen.
Plus, the hottest spot in Los Angeles.
(BEGIN VIDEO CLIP)
ELEX MICHAELSON, CNN HOST: When you see an eight-hour line for your restaurant --
UNIDENTIFIED MALE: I don't even know what to say.
MICHAELSON: How do you -- how do you conceptualize that?
UNIDENTIFIED MALE: Honestly, I become my parents, Max and Helen. It's too much.
(END VIDEO CLIP)
BURNETT: We'll tell you what's worth an eight-hour line.
(COMMERCIAL BREAK)
[19:48:00]
BURNETT: All right. Breaking news on the D.C. pipe bombing case. We are learning about a possible motive. The suspect, we've learned, told FBI investigators that he believed the 2020 election was stolen.
Now, Brian Cole Jr. just made his first court appearance. Allegedly, he had planted pipe bombs in Washington, D.C., the night before the January 6th insurrection.
And tonight, Brian Todd is OUTFRONT with the new news.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): Wearing a tan jumpsuit and glasses as he made his first court appearance, 30-year-old Brian Cole, Jr. was read his rights today by a federal judge. Six members of his family, visibly emotional, stood up at various points in the hearing, then shouted, "We love you, Brian. We're here for you, baby."
Cole faces two federal explosives charges connected to two pipe bombs left at Democratic and Republican Party headquarters in Washington nearly five years ago, the night before the January 6th attack on the Capitol.
One of the charges states he allegedly had the intent to kill, injure or intimidate. Attorney General Pam Bondi told Fox News the legal case against him could build.
PAM BONDI, ATTORNEY GENERAL: Hundreds of agents are on this case because this is a very dangerous person. And again, I believe there are more charges to come. TODD (voice-over): Cole did not enter a plea. People briefed on the
matter tell CNN. During interviews with the FBI, Cole told investigators he believed the 2020 election was stolen, perhaps providing the first indication of a possible motive.
BRADLEY MOSS, NATIONAL SECURITY ATTORNEY: Certainly seemed like an effort to disrupt things, to prevent the certification of the electoral slate that next day and to somehow prevent Joe Biden from becoming president two weeks later.
TODD (voice-over): But sources tell CNN Cole made multiple statements with FBI investigators over a period of hours, and officials are being cautious about discussing a definite motive. Investigators say they used Cole's cell phone data to track his location the night the bombs were dropped, and they traced purchases he made of the bomb components, including galvanized pipe timers and batteries, and new details from neighbors and officials of a reclusive suspect who kept a low profile in the Woodbridge, Virginia cul-de-sac where he lived.
[19:50:05]
JEANINE PIRRO, U.S. ATTORNEY FOR WASHINGTON, D.C.: His closest friends or his family. He lives with his mom and his sisters. He would go to work for a few hours a day. His father had a bail bonds -- bail bondsman company.
TODD (voice-over): Neighbors told CNN they'd often see Cole walking his chihuahua in the neighborhood. He had quirks, like wearing shorts and red crocs. Even on the coldest days of winter, they said. And they said he was antisocial.
NEIGHBOR OF SUSPECT BRIAN COLE, JR.: He never interacted, never made eye contact, always kind of kept to himself, often would be wearing headphones and just seemed like he was either listening to something or just kind of wanted to stay by himself.
(END VIDEOTAPE)
TODD: Officials tell CNN this nearly five year investigation is still ongoing, with more search warrants being executed. The criminal complaint for Brian Cole says in the days after he allegedly planted the bombs on the night before January 6th, the complaint says in the days after that, he continued to buy components used in bombmaking -- Erin.
BURNETT: All right. Brian, thank you very much, with those new details.
And next, the most talked about new restaurant in Los Angeles. Friday night, time to talk about that. People actually waiting eight hours to get a table. I mean, what in the world in this day and age could be behind that? Well, there is something, and we're going to show you what it is.
(COMMERCIAL BREAK)
[19:55:59]
BURNETT: So, would you wait eight hours for a milkshake? What about for scrambled eggs? Before you say, are you crazy? Let me just tell you that is actually happening in L.A. right now where "Everybody Loves Raymond" co-creator Phil Rosenthal has just opened a new diner. Rosenthal also stars on the hit Netflix show "Somebody Feed Phil", and obviously he's put food front and center of his sitcom career.
Elex Michaelson is OUTFRONT and he's trying out those milkshakes
(BEGIN VIDEOTAPE)
ELEX MICHAELSON, CNN CORRESPONDENT (voice-over): This is the best milkshake I've ever tasted.
Greatest assignment of all time.
NANCY SILVERTON, CO-OWNER, "MAX AND HELEN'S": Yeah, right.
MICHAELSON (voice-over): It's too good not to share with Phil Rosenthal and Nancy Silverton.
PHIL ROSENTHAL, CO-OWNER, "MAX AND HELEN'S": Now we're friends.
MICHAELSON: I mean, how can we not be friends after that?
MICHAELSON (voice-over): Phil and Nancy co-created "Max and Helen's", a 40-seat diner that's the most talked about new restaurant in L.A. online.
MICHAELSON: When you walk around this place, what goes through your mind?
ROSENTHAL: I'm in love.
MICHAELSON (voice-over): It's drawing long lines to L.A.'s Larchmont neighborhood. On opening weekend, an eight hour wait to get a table.
MADELINE SIDARAS, CUSTOMER: We'll be back waiting again.
MICHAELSON: When you see an eight-hour line for your restaurant --
ROSENTHAL: I don't even know what to say.
MICHAELSON: How do you -- how do you conceptualize that?
ROSENTHAL: I've become my parents, Max and Helen. It's too much. It's too much.
MICHAELSON (voice-over): Phil Rosenthal named the restaurant after his late parents. Their pictures, all over the walls here. Their influence, all over Phil's resume.
ROSENTHAL: I owe them everything.
MICHAELSON (voice-over): The real life Max and Helen helped to inspire Ray's fictional parents on "Everybody Loves Raymond", a 15-time Emmy Award winning show co-created by Phil.
ROSENTHAL: My mom would say, you know, it was a little exaggerated. Your hair looks beautiful. I was talking to dad.
MICHAELSON (voice-over): Phil's parents regularly joined via Zoom on his Netflix food and travel show, "Somebody Feed Phil". After "Somebody Feed Phil" visited the Palace Diner in Maine in 2022, Phil started thinking about opening his own diner in L.A.
ROSENTHAL: Diners are disappearing from America, and with that, you maybe lose your center of your community. So we're going to fix everything with our diner.
MICHAELSON (voice-over): Phil's dad especially loved diner food.
ROSENTHAL: His one great love in his life wasn't his wife and children. It was very soft scrambled eggs.
MICHAELSON: On his tombstone, right? What does it say on his tombstone?
ROSENTHAL: Are my eggs fluffy? And so Max's fluffy eggs are on the menu.
MICHAELSON (voice-over): That menu, designed by Phil's longtime friend Nancy Silverton, past winner of the Jjames Beard Award for best chef in America.
Nancy, who so often focuses on fine dining, is now concentrating on diner food.
SILVERTON: We're competing with memory. And everybody does.
ROSENTHAL: Literally competing with memories.
MICHAELSON: Yeah.
SILVERTON: And people have that memory, right?
ROSENTHAL: Every American has a memory of this food.
MICHAELSON (voice-over): One of the biggest hits --
ROSENTHAL: You can't leave without this.
MICHAELSON (voice-over): Hot chocolate with a marshmallow.
MICHAELSON: It's so good.
UNIDENTIFIED MALE: This is going to table 35.
MICHAELSON (voice-over): Phil's son-in-law, Mason, and daughter Lily help run the family restaurant.
MASON ROYAL, CHEF, "MAX AND HELEN'S": You know, this is just the most special project I've ever been a part of. LILY ROYAL, PHIL'S DAUGHTER: Honestly, it's such a dream come true.
ROSENTHAL: This what you're seeing right here? I wish this for every parent. I'm so proud.
MICHAELSON: How does that make you feel?
LILY ROYAL: It's everything.
ROSENTHAL: I'm a wreck. Thanks for coming.
MICHAELSON: There's nothing better, right? Just one life.
ROSENTHAL: There's nothing better.
MICHAELSON: Yeah, absolutely.
(END VIDEOTAPE)
BURNETT: All right. Elex, I could have watched even. Oh, there's going to be someone around you waiting. Eight hours is going to come that out of your hand. You better watch out. How long are people waiting right now?
MICHAELSON: It's about an hour and a half right now, so it's gotten a little better. But we want to show you this. This is what you're waiting for. This is the Reuben. And I'm trying it for the first time.
Erin, next time you're in L.A. You and I are coming here. You're going to try this really, really good.
BURNETT: That is, that is almost wrong what you're doing right now to me. That is just -- I mean, you lean in like that you took a giant bite of a Reuben sandwich with whatever that awesome looking sauce.
Oh, well, hopefully, you're going to be feeling okay for later tonight because Elex's new show, "THE STORY IS" will be at midnight tonight and every night 9:00 Pacific. Best new show around.
And we will see you then. Thanks for joining us.
Time for Anderson.
