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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