Return to Transcripts main page
First Move with Julia Chatterley
Evacuation Orders in Los Angeles County; Trump's Migrant Crackdown; Trump Send Additional Troops To U.S.-Mexico Border; Trump Administration To Challenge Sanctuary Cities; Musk Questioning The Stargate Deal; Trump Threatens Sweeping Tariffs; Prince Harry's Victory Against Rupert Murdoch Media Empire; Remembering Kobe Bryant. Aired 6-7p ET
Aired January 22, 2025 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JAKE TAPPER, CNN ANCHOR: You can follow me on Facebook, Instagram, Threads, X, and on the TikTok, @jaketapper. You can follow the show on X,
@TheLeadCNN. If you ever miss an episode of The Lead, you can listen to the show whence you get your podcasts. The news continues on CNN with Wolf
Blitzer right next door in a place I like to call The Situation Room. I'll see you tomorrow.
OMAR JIMENEZ, CNN INTERNATIONAL HOST: Welcome everyone. It is 8:00 a.m. in Seoul, 3:00 p.m. in Los Angeles, and 6:00 p.m. here in New York. I'm Omar
Jimenez in for Julia Chatterley. And wherever you are in the world, this is your "First Move."
All right. Everyone, welcome to "First Move." And here's today's need to know. Wildfire worries. Evacuation orders in Los Angeles County as a new
fire grows to more than 5,000 acres.
Meanwhile, migrant crackdown. President Trump sends an additional 1,500 troops to the U.S. border with Mexico.
And Stargate skeptic. Elon Musk claims that investors in a new A.I. project announced by President Trump don't have the money.
And Prince Harry claims victory after getting a public apology from damages -- and damages, excuse me, from Rupert Murdoch's media empire. All of that
and plenty more coming up.
But we want to begin with these dramatic scenes from California where a new wildfire is quickly spreading north of Los Angeles, driven by gusty winds.
The fire is burning through thick brush and forest. At least 10 aircraft have been requested to help already with the response. Residents in this
area are under a mandatory evacuation order.
And at times, the fire has been burning through an area the size of a football field every two to three seconds. Of course, it comes just two
weeks after deadly wildfires erupted in other parts of L.A. County. Currently, there are about 19,000 people under evacuation orders and 16,000
people under evacuation warnings, according to the L.A. County Fire Department. They confirmed to CNN this afternoon.
I want to go straight to our Veronica Miracle, who is on the scene for us. Now, Veronica, I know you've been out there at least over the course of the
past hour or so. How is this fire moves? What are you seeing now?
VERONICA MIRACLE, CNN CORRESPONDENT: Just incredibly. I mean, Omar, look at the winds. Look at how strong they are gusting. The flames right behind us,
I mean, we have been tracking this over here.
So, when we first arrived here, the flames were all up on that hillside, chewing up this park. We're standing at Castaic Lake Park and we could see
the flames on the other side. The wind over the last hour has pushed it all the way down this way, just all along the lakeside, some of it going down
to the lake, but then, all of it just wrapping around here, going beyond that bridge.
What is a major concern is there is an RV park in that direction. And as the fire pushes this way, the major concerns is all of the houses that are
on the other side of here. Right -- over the last hour. all of the smoke and the flames has really been concentrated in the Parkland, but it is
moving just dangerously close to the populated areas.
Of course, they're under mandatory evacuations, but that doesn't stop people from staying back, hosing down their homes. And we saw a lot of
people who have not yet left.
And another piece of interesting information here, as we were getting to this fire, we were actually trying to cross the road that bridge to get to
a little bit closer to the flames. We were stopped by a CHP officer who said we could not go through because it was a crime scene and there was an
arson investigator up there. So, that is from a CHP officer who wouldn't let us through. Of course, you know, the cause of this fire is still under
investigation. But this is what's happening here in the early stages.
So, a lot of chaos, the I-5, the major interstate that you take to get through here and then go all the way up to Central California, the
connector line from Central to Southern California, that has been shut down indefinitely. And these winds are definitely kicking up. So, a lot of
firefighters out here, but this is a major concern. Omar.
JIMENEZ: And, you know, at this point, I mean, we could hear the wind going across your microphone as you're even talking to us right now. And as you -
- can you just paint a picture for our viewers for perspective. Obviously, folks have been seeing the Los Angeles area burning in various points in
Malibu and Altadena and Pasadena areas over the past weeks, really, since the beginning of this year. Where are you right now? And how close are you
to some of the other affected areas that, again, viewers have been seeing burning over the past few weeks.
MIRACLE: That's right. That's a great question, Omar. We actually were covering some of the cleanup of the damage from the Eaton Fire, and we came
straight from there. So, that was about 45 minutes from us.
So, this is a suburb. The fire is burning in a suburb area where -- kind of up against the hillside. So, it's not as densely populated as you get
further into Los Angeles. So, still about an hour down south is where you're really going to see some of those areas that have been impacted, of
course.
[18:05:00]
But embers here can fly up to a mile away, and that was some of the major issues that happened to the Palisades and the Eaton Fires, they started up
deep in canyons, and then those embers would fly a mile away, start a spot fire, another mile, another mile, and quickly get into populated areas. So,
with these winds anything can happen. And of course, all of this area is on edge.
JIMENEZ: I mean, again, we've already seen more than 5,000 acres burning and really, just the past two hours at this point. Veronica Miracle, thank
you for bringing us the report from the ground. Please stay safe.
I want to go -- get more on this from Chad Myers at the CNN Weather Center. Chad, obviously, look, winds, major concern in situations like this,
obviously dry conditions as well. Can you just paint a -- or tell us what are the conditions right now and should residents be worried?
CHAD MYERS, CNN METEOROLOGIST: Well, we're talking about a 35-mile per hour winds, which translates to about 60 kilometers per hour, depending on what
system you want to be using. The problem, Omar, and it's the same system worldwide, the relative humidity of the air that's blowing is 7 percent. 7
percent will crack your fingers and make your lips chapped in just a couple hours. But this is the area that has the wind coming out of the desert, and
then it's blowing through that fire at, you know, less than 10 percent relative humidity.
Kind of going back to your question to Veronica, because I can show you on a map rather than just have her out in the field. Here's Eaton. Here's the
Palisades. There was the Clay Fire. And we're north of there, kind of up the 405, through the 5 Corridor and then right there at the lake. All the
winds have been coming from the north to the south.
So, this is not a spark from any of the other fires. This is a brand-new ignition, which is why Veronica was asking the police officials there,
could this -- can I go? And they said no, because this is an arson investigation. Not that it's arson. We don't know, but they're
investigating.
Here's the lake that she was standing on. She was right there. There's the dam right there creating the lake. Now, the fire is in the wild land area
here for sure. Likely no structures impacted just yet, but the winds are blowing across here, across Interstate 5, which is the grapevine, which
goes all the way north to Northern California. And this is the area -- this is the land area that we're looking at with all of those homes that we're
so concerned about.
And the winds will pick up tonight. And that's a problem because it will push sparks around, but it's a bigger problem, Omar, if the winds pick up
into the 30-to-40-mile per hour range because then the aircraft cannot fly. And we won't have aerial assets dropping water and dropping that flame
retardant on the fires themselves. So, certainly don't want that situation.
We have DC-10s, and you have to be an older person like me to remember what a DC-10 is. It was an old jumbo jet. It was the biggest thing you could own
at the time, I think, made by McDonnell Douglas. They took all the seats out. They took everything out and they put big tanks in there. They can
drop almost 10,000 gallons, 40,000 liters of retardant at a time in a one- mile stretch. A little bit longer than a kilometer.
That's what they're up against right now. They can use these planes right now to help stop the fire. If the winds blow too hard, everybody gets
grounded, and then it's a firefight on the ground, and that's no way to fight this fire at 40 miles per hour for sure. Omar.
JIMENEZ: And that, of course, was such a major dynamic at the beginning of the Palisades Fire at the beginning of this year. Chad Myers, really
appreciate it. Thank you.
Meanwhile, President Donald Trump is sending additional troops to the U.S.- Mexico border. The White House says the president has signed an executive order to deploy 1,500 troops there. He's also suspending the entry of
asylum seekers at the southern border as well. Between 11 and 1,300 people have been crossing the border each day, according to a Homeland Security
official. That is the lowest level in years. The president declared a national emergency at the border on Monday.
I want to bring in Priscilla Alvarez now. So, Priscilla, can you just give us some perspective on what is happening right now and what these troops
either may or may not be authorized to do once they get there?
PRISCILLA ALVAREZ, CNN CORRESPONDENT: Yes, we're getting additional details over the course of the afternoon as to what exactly this is going to look
like. And let's put this into two categories. One is increased manpower. Another is using DOD assets for repatriation flight.
So, on the first 1500 troops heading down to the U.S.-Mexico border, supplementing, I should say, the troops who are already there. Of course,
the Pentagon has offered support on the U.S. southern border, that is not new. What they do often is work behind the scenes, like operational
readiness, having military intelligence analysts who can study and assess flows and threats, augmenting air operations.
[18:10:00]
So, a lot of efforts to try to help the U.S. Border Patrol as it enforces the U.S.-Mexico border and essentially, have the U.S. Border Patrol out on
the frontline instead of having to be behind closed doors doing this other work.
Now, the other part of this is air assets to do repatriation flights. Now, military aircraft, it will be going to San Diego and El Paso. They are
trying to remove as many as those who are in border patrol custody. Just over 5,000 people. Of course, those would be recent border crossers that
would be part of these repatriation flights. The military will be helping carry out -- it's supposed to commence within the first 24 to 48 hours.
That is according to our colleagues over at the Pentagon. And it will, again, include these 1,500 troops who will be assisting along the U.S.
southern border.
So, all of this is part of this crack down on the border. Though, as you know, Omar, the numbers are low. They're lower than they have been. When
you said the 1,000 crossings or just above that, well, that is far lower than when it was 6,000, 8,000, 12,000 people a day. So, the border right
now is relatively quiet, but all the same, the Trump administration is trying to make a statement by sending Pentagon resources there to clamp
down on any crossings.
JIMENEZ: Priscilla Alvarez, really appreciate the reporting. Thank you so much. I want to talk about this more as the Trump administration also plans
to challenge sanctuary cities by threatening to prosecute local officials who resist the federal immigration crackdown. That is according to a memo
from the Justice Department.
President Trump is also placing all federal workers in diversity, equity, and inclusion offices on leave after he signed an executive order banning
all DEI programs. I want to bring in CNN Senior Political Analyst Ron Brownstein.
You just wrote an analysis titled "How Trump has Reshaped the Political Map." What do you mean by that? And how do you think that translates to the
pace of executive orders we're seeing right now?
RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Well, what Trump has done, Omar, over these last three elections is really strengthen and consolidate
the Republican hold over the parts of the country that are ready to leaning to the right when he arrived.
There are 25 states that have voted for him in all three of his presidential races. That's the most states that either party has won over
three consecutive elections since Ronald Reagan and George H. W. Bush in the three elections of the 1980s. But what I think is even more important
is the degree to which he has not only won these states, but really tightened the GOP grip on them.
He got 54 percent of the vote in all of them except North Carolina. Republicans now have 22 of their 25 governorships. They control the state
legislatures in all of them except Nebraska, which is nominally nonpartisan, but actually under Republican control. And most importantly,
Republicans now hold all 50 of the Senate seats in these states up from 42 in 2017 during Trump's first year in office.
So, this gives the GOP an incredibly powerful base from which, you know, to advance its agenda. By itself it's not enough to win the White House, it's
not enough to create a filibuster proof Senate, and that is where you get to the question of whether Trump's agenda is really capable of seizing the
opportunity, the disappointment that Joe Biden left him, which is to appeal to an audience significantly beyond his traditional base.
JIMENEZ: So, let's look at, that ruling capacity or that governing capacity, because in execution of the Clemency Act for the January 6th
rioters, for example, Federal Judge Tanya Chutkan who you may remember presided over the Trump election subversion case, wrote today as she
dismissed a January 6th riot defendants case that the dismissal cannot whitewash the blood, feces, and terror that the mob left in its wake and it
cannot repair the jagged breach in America's sacred tradition of peacefully transferring -- transitioning power.
So, given all of what you just said, and given Trump administration officials reportedly discussing inviting some January 6 convicts to the
White House for a potential visit and meeting with Trump, do you anticipate these clemency acts even for violent offenders, in some cases, to do any
lasting political damage in the Republican Party that might make it harder to govern?
BROWNSTEIN: Yes. I do, yes. And I think it's indicative of a broader problem. You know, as I said, you know, through American history, the
presidents who have been most consequential, most successful, really, have tended to follow presidents that most of the country view as having failed.
I mean, that was true for Franklin Roosevelt after Herbert Hoover. It was true for Ronald Reagan after Jimmy Carter.
And I think, you know, the widespread sense among Americans that Biden did not deliver what they expected, particularly on the big issues of inflation
and the border has given Trump an opportunity to really speak to a broader audience than he has throughout his career.
[18:15:00]
But if you look at his actions during the transition, you know, fighting with California and threatening their wildfire aid or the actions that he's
pursued since taking office headlined by this choice to buy to pardon or commute the sentences of people who violently attacked police officers, you
know, you have to question whether he really has the instincts, the inclination, or the skills to be more than what he has been through most of
his career, which is, you know, a base politician who focuses more on dividing than on expanding.
The opportunity is real. I mean, you know, in polling and the election results there are groups that are more open to him than we have seen in the
past. But you look at the way he is approaching governing, and it does lead you to question whether, in the end, he is going to be able to take
advantage of that opportunity, which will first come to roost for Republicans in 2026, in the midterm elections, and then, ultimately, for
whoever succeeds him, assuming he doesn't try to run again in 2028.
JIMENEZ: So, that's what I was going to ask about because, look, even on the immigration front we've seen him -- the president move at a very quick
pace in regards to executive orders. He had campaigned on cracking down on immigration. But when you look at the next potential test of, again,
Republican governing power, the midterms are two years away. I mean, how critical is it for Trump to do all of these actions as quickly as possible?
BROWNSTEIN: So, yes. You know, first of all, I think the locus of action is going to be the executive branch, not Congress. You know, when Republicans
control Congress, usually they're -- what they are most committed to doing is confirming federal judges and justices and passing a big reconciliation
bill, as it's known, which focuses on fiscal issues because they can do both of those with a simple majority vote.
The -- you know, beyond that, there isn't that much that they -- I think, of major agenda items that they're going to get to 60 votes on in the
Senate. So, what you've got is a reality that the big changes Trump is going to pursue, I think, is going to be done through the executive branch
in partnership with red states, basically these 25 states, the Trump 25, as I call them, that he won in three consecutive elections, defended and
blessed wherever -- in almost all cases by the Republican majority on the Supreme Court.
That is the real axis for change in the Trump era. And where I think they're -- you know, where these battles are going to be fought out is
primarily going to be in the courts. And we'll see when, if at all, that Republican majority is going to say no.
I mean, you know, constitutional scholars say the idea of eliminating birthright citizenship with an executive order is absurd on its face.
That's true as long as at least two of the Republican appointed justices agree, assuming the three Democratic appointed justices do. And the same is
true on every issue that will be coming down the pike.
JIMENEZ: Well, as we typically see with executive orders, there's a lot more scrutiny that they are subject to as opposed to if a law is actually
passed by Congress. So, we'll see how many actually hold up.
BROWNSTEIN: And it's -- and real quick, it's writing on sand. Because as you can see, in these first 48 hours, presidents who have to rely on
executive order because they can't get 60 votes in the Senate anymore, they are subject to having it immediately erased from the blackboard by the next
president. And we get whiplash as a country.
JIMENEZ: If you can do it simply with the stroke of a pen, you can undo it simply with the stroke of a pen. Ron Brownstein, really appreciate you
being here.
BROWNSTEIN: Thanks for having me.
JIMENEZ: Meanwhile, President Trump is threatening U.S. tariffs and new sanctions on Russia if President Vladimir Putin doesn't end the war on
Ukraine soon. In an online post, the U.S. president wrote, we can do this the easy way or the hard way. CNN Chief International Security
Correspondent Nick Paton Walsh is in the Ukrainian capital.
(BEGIN VIDEOTAPE)
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Well, it is the second time in about 48 hours in which President Trump has tried to
strike a far from cozy tone with Vladimir Putin, a counterpart with whom his relationship during his first term many question as being too
sympathetic.
His lengthy statement talks about the need to end this ridiculous war, how he'd be doing Russia a favor by allowing them to strike a deal, something
Vladimir Putin should accept because of the economic damage that's been doing. And he says if this idea is not seized on by the Kremlin head, then
he'll be left with, quote, "no choice" but to implement tariffs, taxes, and more sanctions against Russia.
Now, it's unclear quite what tightening of the sanctions screw there is left to do. Just in the closing days of the Biden administration, new
tougher sanctions were placed on the Russian oil and gas industry. And I think many experts assess that the west is doing pretty much all they can
without damaging themselves significantly through the sanctions that have already been implemented.
But still the threat is indeed there. And it's one, I think, designed to try and push Russia to the negotiating table. We haven't really seen a
serious proposal emerges as to how those talks could potentially take place.
[18:20:00]
Ukrainian President Volodymyr Zelenskyy also said at Davos that his team would meet Trump's team, and then eventually he would meet Trump. That's
all part of the stagecraft of diplomacy here, policy makers getting together and trying to establish what a road map towards some kind of deal
would be.
But the big missing part of the equation here is exactly how Moscow feels about this. They have welcomed Trump to office and sounded like they would
be interested in serious negotiations around ending the war in Ukraine, but that is a quite a contradiction, their conduct here, their statements
domestically, much more maximalist at times in what they want to try and achieve.
And regardless, during all this wait for diplomacy to take shape. They are incrementally, but steadily and consistently winning on the frontlines. And
that's the mood music, frankly, here. We have Trump trying to sound, perhaps for his own domestic reasons, that it'll be tough on Moscow.
Zelenskyy tough on Europe, trying to get them to pay more for their own security to police Trump. And Putin welcoming Trump to office, but not at
this stage, sounding like he wants to immediately engage in a process to end the war, that he is slowly, frankly, at this point, but surely winning.
So, a very complex road ahead here, despite this opening salvo from Trump that suggests he wants to provide potentially some tougher incentives for
Russia to come to the table.
Nick Paton Walsh, CNN, Kyiv.
(END VIDEOTAPE)
JIMENEZ: Nick, thank you. Straight ahead, President Trump's announcement of a new A.I. project has the tech world excited? But Elon Musk is openly
questioning the Stargate deal. We'll explain coming up.
(COMMERCIAL BREAK)
JIMENEZ: Welcome back, everyone. Another solid day of gains on Wall Street topping today's Money Move. All the major averages in the green. You see
there with the S&P 500 rising to an intraday record high.
Investors cheering solid earnings from the likes of Netflix and Procter & Gamble. Oracle shares adding to their strong gains on Tuesday following the
announcement of its $500 billion A.I. partnership with OpenAI and SoftBank. Meanwhile, SoftBank, shares rallying more than 10 percent in Tokyo trading
Wednesday as well.
The ambitious Stargate project, as I mentioned, to build out U.S. A.I. infrastructure has been sparking excitement across the tech community, with
the exception of at least one prominent tech figure, the one Mr. Elon Musk. The world's richest person, throwing cold water on the deal, claiming the
main players, quote, "don't actually have the money."
[18:25:00]
A pretty stunning comment considering President Trump was the one who announced and touted the deal at the White House Tuesday. OpenAI head, Sam
Altman, who has a strange relationship with Musk, I think it's fair to say, shot back, writing quote, "Wrong, as you surely know." Adding, I realize
what is great for the country isn't always what's optimal for your companies, but in your new role, I hope you'll mostly put America first.
Paul La Monica joins me. He's a senior markets analysis editor at Barron's Magazine. All right. A little bit of drama in the tech world. But despite
the back and forth, is there anything Elon Musk can actually do here aside from chirp from the sidelines?
PAUL R. LA MONICA, SENIOR MARKETS ANALYSIS EDITOR, BARRON'S: I think for the most part, Omar, he's just going to complain. I mean, yes, we know that
he has a bit of a cozy relationship with the president now due to DOGE, but the president's going to make decisions that he thinks are best for the
country and not just best for Elon Musk. And Musk might've learned that the hard way today. There could be some sour grapes because Oracle stock was up
about 7 percent. Tesla stock fell 2 percent today. So, probably he wasn't pleased by that.
But make no mistake, there's also a bit of animosity between Sam Altman and Elon Musk, as you alluded to. And I think that, you know, there are so many
major tech players that are a part of this. Microsoft is a major investor in OpenAI. So, even though Musk may have complained and made these
accusations at OpenAI doesn't have the money. Satya Nadella, the CEO of Microsoft, did an interview on CNBC earlier today and quipped that he has
his $80 billion. He's good for it.
JIMENEZ: Yes, all I know is I'm good for 80 billion. It must be nice. Look, let's talk TikTok, because obviously Trump has issued an executive order
delaying the enforcement of a federal ban on TikTok, which of course was passed into law under Biden, reinforced by the Supreme Court recently. So,
does this become a bargaining chip with China over tariffs? I mean, where do you see this going?
LA MONICA: Yes, I think it is altogether possible that Trump realizes he could use negotiations about TikTok's ultimate survival in the U.S. as
leverage in trade negotiations. But, you know, bottom line, for the past couple of years, there has been a desire to have TikTok in control of an
American company.
The big question is what happens to the algorithm, which is really what is craved, you know, kind of the secret sauce, if you will, for TikTok. Is
that something that also becomes under the control of a potential American buyer, be that you know, someone like Tesla or possibly Oracle as well? You
know, that remains to be seen. But I think a lot of people are just hoping that TikTok does wind up getting saved and having a U S. company operating
the American assets.
Then there's the question of, you know, what happens to the broader company ByteDance, not having control of the U.S. TikTok, but that's, I think a
story for another day.
JIMENEZ: Yes, yes. That's the question. Yes. If it's sold, what does that even look like? And in what form? It might not be the same TikTok. We will
see. Thank you. Paul La Monica, really appreciate you being here.
LA MONICA: Thanks a lot. Have a go.
JIMENEZ: Of course. All right. Everyone, we'll be right back.
(COMMERCIAL BREAK)
[18:30:00]
JIMENEZ: Welcome back. President Donald Trump is threatening to unleash a wave of tariffs on top of trading partners in the coming days. He says he's
now considering a tax on all Chinese imports as early as February 1st.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENT: We're thinking about that too. We're talking about a tariff of 10 percent on China based on the fact that they're
sending fentanyl to Mexico and Canada.
(END VIDEO CLIP)
JIMENEZ: China, Mexico, and Canada, those are the three biggest U.S. trading partners. As Trump threatened 25 percent tariffs on the last two
earlier this week. Now, Jamie Dimon says people need to accept that new tariffs might raise prices. The CEO of JPMorgan Chase was speaking in
Davos, Switzerland at the World Economic Forum. He told CNBC that tariffs serve a purpose.
(BEGIN VIDEO CLIP)
JAMIE DIMON, CEO, JPMORGAN CHASE: I look at tariffs, they are an economic tool. That's it. They're an economic weapon. You know, depending on how you
use it and why you use it and stuff like that. And, you know, people argue, is it inflationary and non-inflationary? I would put in perspective, if
it's a little inflationary, but it's good for national security, so be it. I mean, get over it.
(END VIDEO CLIP)
JIMENEZ: So, be it. Get over it. Other experts warn that tariffs will just raise prices and hurt every country involved. And President Trump's former
chief economic adviser is one of them. Gary Cohn has since been appointed vice chairman of IBM or Big Blue as they used to call it. Richard Quest
asked him why so many respected people have signed on to Trump's tariff plan. Listen.
(BEGIN VIDEOTAPE)
GARY COHN, FORMER CHIEF ECONOMIC ADVISER TO PRESIDENT TRUMP AND FORMER DIRECTOR, NATIONAL ECONOMIC COUNCIL: If you want to tariff something that
you manufacture in your country to protect your workers and protect your GDP, I understand that. But if you're going to tariff something that you
import, that your citizens want, and you're just going to raise the price on it, it becomes a consumption tax. I have had a hard time understanding
this concept.
Now, look, I do think the new administration is starting to evolve on this whole tariff issue. I've seen recent reporting that they're now starting to
think about very small tariffs. So, look, I think we should sit here and wait and see where they evolve, because there is a big impact on tariffs,
and the number one thing that the president needs to fight is he needs to fight inflation. He got elected to lower prices, and he talked about
lowering prices at the inauguration.
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE AND CNN ANCHOR, QUEST MEANS BUSINESS: And you know as well as I do that that -- the traditional way of
lowering inflation is slowing down economic growth either through monetary policy or fiscal policy, but the fiscal policy looks like it's going to be
expansionary.
COHN: Again, I think the new administration's coming in. I think that we probably have seen interest rates go as low as I think they may go. I know
there's other people who think that rates will continue to go lower in the United States. I think the economic debt in the United States right now is
pretty good.
QUEST: Excellent.
COHN: We continue to see good employment numbers. We continue to see a little bit of inflation. The last mile of inflation is always difficult. It
continues to be difficult. We don't want to make it more difficult. So, I think that we'll see interest rates stay where they are. The business
community right now is quite enthusiastic in the United States.
So, I think we will see continued investment from the business cycle. And I think we'll see a normalized economy with normalized growth here. And I
think the administration is going to watch this evolve. I hope they're going to watch it evolve.
QUEST: This enthusiasm by business worries me a bit. Because it's predicated on cutting back of regulations.
COHN: I'm not as worried as you are. Look, the Trump administration, at least when I was there, was not anti-regulation. It was pro-smart
regulation.
[18:35:00]
So -- and I think there's a big difference. I think the prior administration was just anti-business. Anything business wanted to do they
were going to block it. I think the Trump administration is going to regulate. They're going to use regulation to protect businesses. They're
going to use regulations to make sure we don't get into a bad situation, but they're going to allow businesses to naturally grow. Where a merger
makes sense, they'll allow a merger to happen. Where a merger doesn't make sense, I think they will block it. You saw that. Even the president came
out with an opinion on the steel merger.
QUEST: And also, of course, with TikTok, whilst he says, you know, we may not ban it, but we're also going to look at the sale option and all those
other things. So, he does recognize the national security concern that didn't come out of anywhere.
COHN: He does. And look, number one driving focus for the president in this administration will always be jobs and economic growth. They're not going
to do something that diminishes the jobs portfolio in the United States.
QUEST: Can we talk computers, IBM and quantum, the whole sort of -- the U.S. has such a lead at the moment. Maintaining that lead is going to be
the challenge, isn't it, against, say, China and others. How'd you do it?
COHN: Look, the United States is a bastion of capital. Look, there's an enormous amount of capital being put into the A.I. quantum space. I think
the United States has a huge lead. Look, none of us are 100 percent sure what China has. We should assume, and I think it would be foolish not to
assume that China is on equal footing with the United States. We shouldn't assume that they're not, because I think that would be a miscalculation.
Better to be over prepared than under prepared to where China is, especially when it comes to national security and thinking about the
government. But the United States, we are continuously pouring more and more capital and investing in the future of technology, whether it be A.I.
And A.I. is going to lead to quantum. And I think the United States has spent enormous amount of money in the quantum front and the A.I. front.
You walk down the street here in Davos and every storefront has A.I. in it. I mean, you know, last year was crypto, this year it's quantum. I'm sorry,
this year it's A.I.
QUEST: Yes. Choose your color.
COHN: Choose my color.
QUEST: It could be big blue, I mean --
COHN: It's got to be blue. You knew which color I was choosing.
QUEST: I did. All right. The next four years in one word. Choose your word, write your word. You can choose -- or you can sign on to somebody else's if
you want to.
COHN: I got to know how to spell it.
QUEST: Do you know what word you want?
COHN: Yes, I know what word I want. Realignment. R-E --
QUEST: Shout it out for us, come on.
COHN: -- A-I-L-I-G-N-M-E-N-T. There's one for the dyslexic world.
(END VIDEOTAPE)
JIMENEZ: I didn't know there was going to be so much spelling at Davos, but hey, bravo, Richard. Coming up, how the world is responding to President
Trump's threat on tariffs. We're also going to look at what it could mean for American consumers. Stick around.
(COMMERCIAL BREAK)
[18:40:00]
JIMENEZ: Welcome back. The Trump administration is moving to impose steep tariffs on goods from China, Canada, and Mexico. While the president claims
foreign exporters pay the tariffs, the move could raise prices for American consumers. CNN's David Culver explores how businesses in other countries
are responding to the economic uncertainty.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: This is where we assemble everything.
DAVID CULVER, CNN CORRESPONDENT: This is where we assemble everything. We're getting a firsthand look at what some are calling an Industrial China
Town.
UNIDENTIFIED MALE: Everything we make reproduced here is going to end up in a major frenching store in the U.S.
CULVER: We're in Mexico. This is an hour outside Monterrey, Mexico, about 160 miles from the U.S. southern border.
CULVER (voice-over): This region, Mexico's so-called Industrial Capital, ideal for companies like China's Kuka Home furnishing looking to reach U.S.
customers.
UNIDENTIFIED MALE: We as American consumers, want everything immediately. So OK, let's open up shop in Mexico.
CULVER (voice-over): While Kuka Home says their move was motivated by shorter supply chains, a surge of other Chinese companies flooded Mexico to
dodge hefty tariffs President Trump levied during his first term.
CESAR SANTOS, PRESIDENT, HOFUSAN INDUSTRIAL PARK: Well, actually, that helped us, because when they put tariffs there in China, then those
companies came to us.
CULVER: And are they still here?
SANTOS: Yes, of course. They're growing.
CULVER: Question is going to be, what happens if tariffs are applied to Mexico? That's something President Trump has suggested he might do.
CULVER (voice-over): Threatening to hit the U.S.'s southern neighbor and largest trading partner with a 25 percent tariff on exports to the U.S.
UNIDENTIFIED MALE: In the 25 percent tariff on Mexico puts me out of business, simply put it, puts me out of business.
CULVER (voice-over): And that, in turn, would leave many here out of work.
CULVER: If you look around me, you can see at this factory in particular, the vast majority of people who work here are from Mexico.
For now, he's comfortable staying here in Mexico because he has a job. He has opportunity. You don't have that. He said, you have to look for other
ways to sustain your family. And he goes for some that means migrating to places like the U.S.
CULVER (voice-over): The uncertainty of the Trump tariff threat has Kuka Home pausing expansion plans here, and leaves other Chinese companies
questioning their next move.
CULVER: This is your Spanish language books.
ZHANG JIANQIU, ENGINEER: Yes.
CULVER: Chinese to Spanish.
CULVER (voice-over): Zhang Jianqiu is in Mexico scouting future opportunities for his Chinese employer.
CULVER: With a 25 percent tariff. Is it feasible?
JIANQIU: I think most chain companies, they're waiting, they're watching, and then they'll be making fun decision.
CULVER (voice-over): Some Chinese companies, though, are full steam ahead with expanding their footprint to be within reach of their U.S. customers.
UNIDENTIFIED MALE: This is called the Hofusan Industrial Park.
CULVER (voice-over): Inside Hofusan --
UNIDENTIFIED MALE: Basically, 100 percent of the companies are Chinese companies here.
CULVER (voice-over): -- some 40 companies making home appliances, auto parts, light bulbs, medical supplies, you name it all destined for the U.S.
Here are the lines between what's Mexican and what's Chinese, quickly become blurred.
CULVER: You have street signs. You can see the Chinese flag there.
SANTOS: The Chinese flag, yes. These are restaurant. It's a very nice Chinese restaurant.
CULVER: Chinese restaurant.
SANTOS: Chinese restaurant. Yes.
CULVER: As I look at the name, your name is mixed into this.
SANTOS: Yes. It's (INAUDIBLE) and Santos.
CULVER: These two shareholders.
CULVER (voice-over): Hofusan is expanding rapidly, with plans to eventually cover some 2000 acres. But that's not been enough for the demand.
RAMIRO GONZALEZ, DEVELOPER: This area is just next to Monterey. It's called Fores.
CULVER (voice-over): Developer Ramiro Gonzalez is now building another so- called industrial Chinatown.
CULVER: You've got your name in Spanish and then Chinese.
GONZALEZ: Yes. I'm really happy because the Chinese people call me Talon. Talon means big dragon. Basically, this is a multi-tenant building.
CULVER (voice-over): But if Trump's proposed tariffs on Mexico make the U.S. market too expensive, some Chinese companies are confident that
they've still got other options.
SANTOS: We can sell to Europe, we can sell to Latin America, even Mexico. Mexico is a big market too.
[18:45:00]
CULVER (voice-over): Yet despite the potential loss Trump's tariffs might cause him, Cesar Santos believes widening cartel violence is a bigger
threat to business here in Mexico. So much so that he's given up prime real estate to have a police presence nearby.
CULVER: That's on your property?
SANTOS: Yes, ye donate that area adjacent to the property.
CULVER (voice-over): It's a big part of why he actually supports the man behind the tariffs.
SANTOS: He's Trump.
CULVER (voice-over): President Trump.
SANTOS: Actually, I like him for all the rich -- the issues we have on terms of all the criminal gangs and everything like that, the drugs. So, we
need the help of people like him to stop that.
CULVER: And it was that last point there that we actually made note of while we were traveling through that region, and that is despite the
potential negative impact on the economy down there in Monterrey, Mexico, many of the folks we came across are actually supporters of President
Trump, the engineer from China, he says he looks up to President Trump as a businessman, and then you heard Cesar Santos there say, Hey, That he
actually is looking to President Trump for national security, Mexico's national security, hoping to eradicate the cartel violence that has
penetrated much of that country. Cesar Santos was even here in Washington to attend the inauguration this week.
David Culver, CNN, Washington.
(END VIDEOTAPE)
JIMENEZ: All right. Coming up, remembering Kobe Bryant nearly five years after his death. A new CNN original series out this week explores his life
and legacy.
(COMMERCIAL BREAK)
JIMENEZ: Prince Harry's years long legal battle with the British newspaper group has been settled just before the trial was due to get underway. Now,
the dispute against Rupert Murdoch's news group claimed that reporters and investigators working for British tabloids like The Sun had been targeting
the Prince and his family. Max Foster has more from London.
(BEGIN VIDEOTAPE)
MAX FOSTER, CNN ANCHOR AND CORRESPONDENT (voice-over): After months of preparations, Prince Harry's lawyer today ended the case against Rupert
Murdoch's U.K. tabloids. That was before the trial had even started. Settling for a figure, legal sources say, runs into eight figures.
DAVID SHERBORNE, PRINCE HARRY'S LAWYER: News U.K. have admitted that The Sun, the flagship title for Rupert Murdoch's U.K. media empire, has indeed
engaged in illegal practices.
FOSTER (voice-over): The civil case alleged The Sun and the now shuttered News of the World newspapers had illegally obtained private information
about the prince and used it to sell newspapers. In court, NGN's lawyers apologized to the Duke of Sussex for the serious intrusion into his private
life between 1996 and 2011. For unlawful activities carried out by its private investigators and for phone hacking.
[18:50:00]
Perhaps most notably, it apologized for its, quote, "extensive coverage and serious intrusion into the private life of his mother Princess Diana." The
tabloid obsession with the princess was well known, with almost every step documented by photographers. She died in 1997 in a car crash whilst being
chased by paparazzi in Paris.
But it wasn't just the royals who were alleged targets of the tabloids. Ordinary civilians say they were subject to claimed invasions of privacy,
sometimes using the same very questionable tactics. And in a criminal trial starting in 2013, one editor of the Murdoch-owned News of the World was
found guilty of conspiracy to hack phones. He was sentenced to 18 months. The real question now is what comes next.
EMMA JONES, HACKED OFF: This is here now for the police to investigate. You know, we've got a corporate culture of unlawful behavior. We've got an
admission of that. And the same people still working at that organization. For what reason would they not have to now investigate those practices and
say, you know, this has happened? The evidence is almost laid bare. And they've gone to huge lengths to avoid being scrutinized in the court.
FOSTER (voice-over): Prince Harry may have settled, but the legal battles may not be over for the tabloid press, with the prince calling for a new
police investigation, pressure is mounting. A spokesperson for The Sun said no staff at the newspaper were found culpable, and police have previously
found no criminal case.
Max Foster, CNN London.
(END VIDEOTAPE)
JIMENEZ: Thank you, Max Foster. And we should note, London police tell CNN there remain no active investigations into allegations of phone hacking or
related matter. We await any correspondence from the parties involved, which we will respond to in due course.
Now, it's been almost five years since the death of basketball legend Kobe Bryant. Now, a new CNN original series takes a look at Bryant's legacy. He
was drafted straight out of high school, playing his entire career with the Los Angeles Lakers. Bryant was killed in a helicopter crash in 2020, along
with his daughter and seven other people. Our own Bill Weir was a sports anchor in Los Angeles at the peak of Kobe's fame. He filed this report.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Ladies and gentlemen, the next man I'm going to introduce has it all. Youthfulness, talent, got lots of money, about to get
married. Come on up, Kobe.
BILL WEIR, CNN CORRESPONDENT (voice-over): Long before the five NBA title parades, the MVP awards, and Olympic gold --
KOBE BRYANT: USA is back on top. This is what it's all about.
WEIR (voice-over): -- Los Angeles fell in love with this kid at first sight. His dad, Jellybean Bryant, was an NBA first rounder and journeyman
pro who played and coached around the world. So, on courts from Italy to Philly, the prodigy dribbled and dreamed of being better than dad and
everyone else.
BRYANT: You know, I was in the airport on my way up here. And people would come up to me and say, hey, do you play basketball? And I'd say, yes, you
know, I play basketball. And they'd say, well, what team do you play for? I'm used to saying Lower Merion High School. So, I'm in there, I'm like,
well, I play for Lower Merion High -- no, you know what? I'm in Los Angeles.
WEIR: And this sports crazed town embraced that kid like a member of the family, like few other athletes ever. I was a sports anchor in L.A. the
night Kobe proposed to Vanessa, and every station in town sent traffic helicopters over their house, live coverage to mark the momentous occasion.
We had no idea how he would evolve as a family man, as a player, and how Vanessa would end up as a fierce defender of his legacy.
WEIR (voice-over): In 2003, when he was charged with sexually assaulting a 19-year-old desk clerk at a Colorado resort, he insisted it was consensual.
And his wife's very public support helped keep the public very much on his side.
BRYANT: I'm innocent. I didn't force her to do anything against her will. Disgusted at myself for making a mistake of adultery.
WEIR (voice-over): His defense team and the media tore into his accuser's personal life. There were multiple death threats. And when she was no
longer willing to testify, the case was dropped and Kobe would apologize to her in writing. But he would also harness his pent-up anger and drive into
a new alter ego he called Black Mamba. A snake so deadly it strikes fear at first sight.
SCOOP JACKSON, SPORTS JOURNALIST: The next month, he did 81, he came back with that. He won his first championship without Shaq, once he became the
mamba. He won his second championship without Shaq, once he became a mamba. He finally won the MVP, once he became a mamba.
[18:55:00]
WEIR (voice-over): But off the court, Kobe would shed black mamba and transform into a girl dad, doting over his four daughters with obvious,
infectious love right to the end.
UNIDENTIFIED FEMALE: Kobe Bryant did not invent girl dad. He just perfected it. It just felt like the future was limitless for him.
ANNOUNCER: CNN breaking news.
UNIDENTIFIED FEMALE: And then in a heartbeat, it all stops in the most horrific way imaginable.
WEIR (voice-over): It's been five years since a helicopter accident took him, his daughter Gianna, and seven others. We remember the lives lost, and
the legacy of Kobe. A name forever in the debate over all-time greats.
Bill Weir, CNN New York.
(END VIDEOTAPE)
JIMENEZ: And finally, on "First Move," it wouldn't be awards season without the Razzies. Every year, the Razzie Awards recognize what they consider the
worst in filmmaking. This year, the "Joker" sequel, " Folie a Deux," led the pack. I'm so sorry. With seven nominations. Second place is shared by
"Borderlands, "Megalopolis," "Reagan," and "Madame Web," each receiving six nominations.
We're speaking of, you know the best thing about the future? It hasn't happened yet. That's a line from Madame Web. Doesn't matter.
That's just about it for us in the show. What a better way -- no better way to end the show. Thanks for watching. Stay with CNN. More news ahead.
(COMMERCIAL BREAK)
[19:00:00]
END