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Quest Means Business
Biden Set To Speak With Canadian PM Trudeau; Deutsche Bank Stock Falls As Crisis Fears Return; President Macron Asks King Charles To Postpone State Visit; Judge Orders Several Former Trump Aides To Testify; Paul Rusesabagina To Be Released From Rwanda Prison; Protest Outside Downing Street For Netanyahu Visit. Aired 4-5p ET
Aired March 24, 2023 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:19]
ZAIN ASHER, CNN INTERNATIONAL HOST: The closing bell is ringing on Wall Street. It was a muted end to a volatile week for US stocks.
Those are the markets and these are the main events: Two nations, one heart. President Biden tells lawmakers in Ottawa that the US and Canada
will defend NATO against any threat.
EU leaders try to ease investor anxiety over Europe's banking sector, this time it's Deutsche Bank, raising alarm bells.
And King Charles cancels his visit to France, as violent protests continue to sweep the nation.
Coming to you live from New York, it is Friday, March 24th. I'm Zain Asher, in for my colleague, Richard Quest, and this is QUEST MEANS BUSINESS.
All right, good evening.
Any moment now, President Biden is set to hold a news conference with Canadian Prime Minister Justin Trudeau in Ottawa. They are expected to
highlight their shared ties amid difficult global and geopolitical landscape and they are expected to speak about their joint efforts on
issues like supply chains and the opioid crisis.
In the last hour, Biden delivered an address to Canada's Parliament. He said, the two countries will always be partners.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: The United States chooses to link our future with Canada, because we know that we will find no better
partner.
I mean it from the bottom of my heart. No more reliable ally, no more steady friend. And today I say to you, and to all the people of Canada,
that you will always, always be able to count on the United States of America. I guarantee you.
(END VIDEO CLIP)
ASHER: Paula Newton is in Ottawa for us. Phil Mattingly is there as well.
Phil, let me start with you. Biden addressing the Canadian Parliament there, really touting the special relationship that exists between both
countries.
PHIL MATTINGLY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Yes. There is no question. Look, when you talk to US officials in the lead up to this 27-
hour visit across the border, they made very clear, the President intended to elevate the importance of a relationship that is very long standing, is
very critical, and yet sometimes can, at least on the Canadian side, feel somewhat under appreciated.
The President very clearly making an effort throughout the course of his remarks to Parliament to try and reverse that as US officials see as a
misconception. However, there were threads in that speech that underscored that there are clear challenges in the relationship, challenges that were
addressed beforehand in the closed door bilateral meeting and they are pretty significant ones, and they span the array of issues, whether it's
the economy, trade, certainly security issues as well, Haiti, which has been a point of tension between the US administration and their Canadian
counterparts, trying to figure out pathways forward.
Now in advance of the meeting, they did reach an agreement on an immigration proposal that the Canadians have been pushing the White House
or the Biden administration for in the weeks leading up to this moment, it didn't seem like they were going to actually get there. They did clinch
that agreement, which is important domestically for Prime Minister Justin Trudeau.
What they came up with on some of the other issues, we're just getting the joint statement right now that we're reading through, but the President
making clear that where there are disagreements, where there are challenges, they address them as friends, they address them in an effort to
actually work together and find a resolution, not in an adversarial manner, or even in an overarchingly challenging manner.
That will be something both leaders are expected to get into at the press conference, obviously, a significant number of questions about both what
happened today and just the broader geopolitical landscape, which the President very much wanted to center this visit on given their alliance.
Canada is a G7 member country, so we'll see how that goes when they take questions.
One thing I would note, these are two leaders that their aides say are genuinely close, do have real warmth to their relationship, call each other
"Joe" and "Justin" and I think you'll probably see that on pretty vivid display here in a little bit -- Zain.
ASHER: We are standing by for that press conference.
Paula, let me bring you in, because part of the reason why Joe Biden is visiting Canada right now is of course the immigration proposal. Just talk
to us a little bit more about the illegal level of border crossings between the US and Canada at unofficial points. Just walk us through that.
PAULA NEWTON, CNN INTERNATIONAL HOST AND CORRESPONDENT: Yes, I mean, Zain, look, it has got to be said. The numbers absolutely pale in
comparison compared to what the United States encounters every day on the Southern border.
[16:05:04]
NEWTON: Having said that, it did become a political issue for Justin Trudeau and just was unacceptable that people from the United States,
migrants were coming in literally in a hole in the fence, I have been there many times, Zain, and it's no more than that.
And US Border Patrol did not do anything to enforce that area and Canada continued to take in migrants directly from the United States into Canada.
Our understanding is that that will end, but in exchange, Canada will take at least 15,000 migrants directly from Central and South America, and that
was its compromise with the United States.
And it really shows the shared common purpose for this visit, these two countries were able to come together and reach a deal not just on
migration, but other things having to do with Defense spending, as Phil alluded to.
There were issues with how much Canada was spending on Defense and how quickly and it seems that Canada has put more on the table in terms of more
money and a quicker timetable.
But I think, you know, Zain, one thing is for certain, and perhaps Phil will even agree. You know, when you look at Joe Biden sitting up there in
Parliament and giving a speech, there is probably no friendlier place and that includes Congress. He is among friends. He feels the comfort of being
able to do that.
And that likely made it possible to have so many policy deliverables today. I can tell you, US administration officials kept our expectations quite low
for weeks, and what we will now hear from the press conference is more substantial that we were thinking even in terms of Haiti, of aid to Haiti,
even though that aid will not include Canadian boots on the ground, but we continue to await that press conference that Phil is at right now.
ASHER: Yes, we do feel. Phil Mattingly and Paula Newton live for us there, thank you both so much.
And as Paula was just talking about, and as Phil was just talking about, we are getting that press conference any moment now. The podium is ready for
Prime Minister Justin Trudeau and US President Joe Biden set to speak any moment now. We will of course bring you that press conference as and when
it happens.
In the meantime, other stories that we are following: Global banking concerns spread to Deutsche Bank on Friday, as shares closed eight-and-a-
half percent lower in Europe. It dragged down other bank stocks and the broader markets as well.
The DAX closed down about 1.6 percent and the CAC 40 fell 1.74 percent. Deutsche Bank's slide follows problems at Credit Suisse, which has since
been taken over by UBS. In the US, the collapse of Silicon Valley Bank and Signature Bank have rattled the market as well.
EU leaders tried to calm investor nerves. The heads of 27 EU countries met in Brussels earlier. They said in a statement that the banking sector is
resilient and that it has strong capital and liquidity positions. Speaking earlier, German Chancellor, Olaf Scholz said he has no concern about the
health of Deutsche Bank.
(BEGIN VIDEO CLIP)
OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): The banking system is stable in Europe and the European Union, and the Eurozone has regulatory
structures in various areas, which implemented strict rules and that paid off.
It puts us in a situation where we can say that the European banking regulators and the financial system are robust and stable.
Deutsche Bank is thoroughly reorganized and modernized its business model, and it is a very profitable bank. There is no reason for concern
whatsoever.
(END VIDEO CLIP)
ASHER: Anna Stewart is live for us in London. Olaf Scholz saying that there is no reason for concern, but clearly investors don't seem to be
agreeing with him. Anna, just explain that to us.
ANNA STEWART, CNN REPORTER: Yes, nothing to see here was the message by the German Chancellor.
ASHER: Right.
STEWART: But looking at markets, investors don't agree. Credit default swaps, they are the insurance of debt against default, surged really this
week really over the last three days and so, we've seen this big falls in share prices in terms of Deutsche Bank being down at everything at 14
percent at one stage.
It has pared back some of its losses. It closed the day down eight-and-a- half percent, but the big head scratcher really is why is Deutsche Bank being punished more than most of the sector today? Now, this is a bank that
we have spoken a lot about in the past, it was a very troubled bank.
In 2016, for example, the IMF actually dubbed it the world's riskiest bank. There were scandals. It needed a huge restructure, but Olaf Scholz is
right, it has come out the other end of that. This is a bank that has returned to profit. So why is this bank being punished? And I think this
goes to the issue we've seen for the last few weeks really, ever since the collapse of Silicon Valley Bank, I think it comes down to confidence and a
complete collapse of that and investors looking at which is the next weak link. Credit Suisse was a very weak link and it buckled under this sort of
pressure.
ASHER: And because other banking shares fell as well; other European bank shares fell as well. So, just explain the link between Deutsche Bank and
the other bank shares as well. What's behind the selloff there?
STEWART: I think they are all braced against the same sort of pressure and a lot of this pressure obviously started with the collapse of Silicon
Valley Bank, which is interesting because there are different reasons really for the different crises of confidence.
[16:10:04]
STEWART: Silicon Valley Bank, for example, had a very concentrated client base and tech. It also had very long dated Treasuries on its balance sheet.
It didn't undergo annual stress tests, like many of the big European banks do, and all it took was a bank run for it to have to sell some of those
Treasuries at a loss, and then you had a real crisis on your hands and more people pulled their money out, and you've got a big bank run.
In Europe, it's a bit different. With Credit Suisse, there was a crisis of confidence, largely based on the fact that this was a bank that had so many
scandals under its belt and wasn't profitable, and was in the midst of a big restructure. So any kind of issue with investor confidence was going to
drag that bank down.
Now, we are looking at just the contagion effect, and what is so interesting is we've had so many messages now from Central Bank Governors,
from governments, from regulators stating that these banks undergo very strict checks in Europe, all of them undergo an annual stress test, all of
them have to meet very strict capital and liquidity requirements.
But if confidence gets so weak, and people pull all of their money out of a bank, well, any bank will struggle with that. And I think at this stage on
a Friday, what we saw was investors thinking, You know what, sell now ask questions later -- Zain.
ASHER: So here's the thing, obviously, Olaf Scholz is saying that Deutsche Bank is resilient. But as you pointed out just a second ago,
Deutsche Bank has like Credit Suisse, in a sense has a string of problems, especially in its past, a string of scandals.
So in addition to the sort of overall fear that we're seeing, do you think that is a case a little bit of Deutsche Bank's past coming back to haunt
it.
STEWART: It is literally the specter of all those scandals of the rate fixing LIBOR scandal, of money laundering scandals, and all of these
things, and that is what you think about I have to say, when you see Deutsche Bank in the news. I, immediately, in my mind goes back to all of
those stories, but those were a few years ago. This bank has been profitable for some time.
It is possible that is playing into the story at this stage. It is possible that more needs to be done by Europe as a whole in terms of ensuring
deposits, maybe that's what it will take at this stage, but it might just be another choppy day of trade and Deutsche Bank just happens to be being
pummeled the worse and I'm sure we'll get more of this next week, so it doesn't seem to be over yet.
ASHER: Uh-oh. We're ready. We're bracing ourselves, Anna.
Anna Stewart live for us there. Thank you so much.
And the game of Whack-a-Mole continues for authorities trying to stomp out fears in the banking sector. Officials have already guaranteed depositors,
arranged lifelines, and coordinated takeovers all to try to prevent new problems from popping up.
Now, Deutsche Bank, as Anna Stewart was just talking about there is threatening those efforts and officials will need to act very quickly to
prevent the fear from spreading further.
Kristina Hooper is Chief Global Market Strategist at Invesco. She joins us live now from Connecticut. So Kristina, just walk us through your reaction
overall to all the sort of investor anxiety we are seeing, especially in Europe.
KRISTINA HOOPER, CHIEF GLOBAL MARKET STRATEGIST, INVESCO: Well, I mean, it's clear that this is a crisis of confidence. It is not a systemic
crisis. It's not a widespread, enormous issue problem. It's more about investors getting comfortable with headwinds facing specific banks with
idiosyncratic issues.
You know, there are some commonalities there, but this is not systemic, and I think that's important to stress.
What we have going for us is policymakers that are very sensitive to the risks, they really have been ever since Central Banks began their
aggressive tightening policies. We're really three for three -- the Bank of England stepped in last fall, and really worked quickly to stem the crisis
around a UK gilt yields and pensions.
And then of course, we saw the United States step in and essentially create a new credit facility and do everything it could to address the problems
among some regional banks, and of course, we saw the Swiss National Bank step in last week.
So we have policymakers that stand at the ready to perform, to create effective policies to target issues, and I think that that's really the key
takeaway, just we need to keep stressing it because it is a competence issue.
ASHER: Okay, so it's a confidence issue. So what does that mean in terms of specifically what officials and regulators need to do to stem the crisis
and also to instill more confidence in the European banking sector?
HOOPER: Well, I think consistent messaging is critical. You know, we did see a lot of jitters created this week by US Treasury Secretary Janet
Yellen's words, that really took away from what seemed to be a much more positive sentiment coming from the FOMC press conference.
[16:15:01]
HOOPER: So I think you know consistent language is important, but more than that, it is continuous reassurances that policy makers stand at the
ready to do what is needed to stop anything and any -- you know, to see warning signs, and address them quickly to stop anything, any problems from
becoming major crises.
So far they've done just that. I think we need to see a continuation of that, and hopefully, then we can get some distance and move beyond this.
ASHER: So reassurances, you know, sort of repeatedly letting investors know that they're going to do whatever it takes to really support the
banks. ECB President Christine Lagarde said that they do have the tools to fight inflation, and also the banking crisis.
I mean, do you think that's the case?
HOOPER: I do think that's the case. Certainly, that is the playbook that they've used thus far. The Bank of England did that this past fall, and
we've certainly seen the same thing with the ECB and the Fed, although with their interest rate decisions, what they gave us were dovish rate hikes.
And so they have changed their guidance going forward.
So that suggests to me a sensitivity to the fact that they may need to stop hiking rates, they may need to do that now. So certainly, I think policy
tools that are targeted at directly stopping the issue or addressing the issue at hand is important, but I think also that realization that they may
need to stop hiking, and they may even need to start cutting rates, that is the other part of the equation.
ASHER: So with that in mind, understanding that, you know, at some point, they're going to stop hiking, likely. What do you think that means for
stocks and for economic growth overall in this country?
HOOPER: Well, I certainly think that defensive positioning is likely to perform better in this environment. I mean, we are in a risk off
environment where there is still a lot of hesitation and nervousness, and it is likely to take some time to get beyond that, to feel as though these
issues are behind us.
But I think once markets feel a lot more comfortable with the situation, with banks, both in Europe and the US, and once we see Central Banks hit
that pause button, I think sentiment can change and this could be a more risk on environment where stocks perform better and riskier credit could
perform better as well, but it's going to take a little time to get there.
ASHER: All right, Kristina Hooper live for us there, thank you so much. We appreciate that.
All right, King Charles has postponed his State Visit to France next week amid rising social unrest over President Macron's pension reforms. We are
heading to Paris, next.
(COMMERCIAL BREAK)
[16:20:36]
ASHER: Plans for a protest next week in France has forced King Charles to postpone his State Visit. Emmanuel Macron asked the King to come some other
time.
The French President has his hands full dealing with growing social unrest over his pension reform, as Mr. Macron is vowing to press on with the
changes and he had this to say about violent clashes across the country on Thursday.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, FRENCH PRESIDENT (through translator): In the face of violence, which I distinguish from the protests, we continue to be
extremely firm. On that topic, I condemn the violence we saw yesterday. I remind everyone of their responsibilities, and I reassure the law
enforcement forces who did exemplary work of my full support.
As to everything else, we continue to move forward. The country deserves that and needs it.
(END VIDEO CLIP)
ASHER: Melissa Bell is live now from Paris. So Melissa, today certainly represented a bit of a breather, but the country is still feeling the
effects of what happened yesterday. Walk us through it.
MELISSA BELL, CNN CORRESPONDENT: That's right.
The images were quite extraordinary, and as you mentioned, a moment ago, there was more than a million people in the streets. Some of it was
peaceful, much of it was peaceful, but it was those extraordinary images of the rubbish being set alight, the barricades going up, the scuffles with
police that have of course, been quite shocking ever since that march took place.
What we're expecting over the course of next few days are more of those spontaneous small scale protests that we've seen for much of the last week.
But the size of yesterday's demonstration, the anger of parts of it, the violence of some of it, really have I think, prompted the government this
morning to make that call to Buckingham Palace to suggest Emmanuel Macron said out of common sense that the visit should be postponed.
And this of course, ever since the unions announcing that the next big day, the 10th day of planned protests and strike action will now come on Tuesday
with no doubt a repetition of some of those scenes we've seen today, and bear in mind that Paris is really not looking its best.
There are some 10,000 tons of garbage still out there on the streets of the French capital. It's seen better times. I think, all of that taken together
was just considered that the disconnect as well between the images of a State Visit, Emmanuel Macron has contested as he is right now, holding a
State Visit for King Charles III was just too out of touch really with what we're seeing on the streets of Paris.
And again, that anger really focused on the person of the President, who has for a long time been described by his detractors, by unions, by those
on many sides of the political spectrum as representing really only the rich. That is the criticism that he is really been lobbying for ever since
the yellow vests.
And this time as well, the main criticism of many people is that this particular reform, they say, will penalize the blue collar workers more and
that is part of the protest movement. You see it in the placards. You hear it in the chants. You hear it when you speak to people.
And I think that disconnect between the demands and the view that they have of Macron, combined with what we can imagine the State Visit would have
looked like suddenly didn't seem like a terribly good idea -- Zain.
ASHER: So what happens next, Melissa? With both sides digging in their heels, Emmanuel Macron is not going to do a U-turn or an about face,
obviously. And these protests are set to continue intermittently, but there are going to be more large scale protests. Where does this all go from
here?
BELL: Well, in terms of the law itself, Zain, its last hurdle will be getting through the Constitutional Court. We expect that to happen within a
month. It will rule on its constitutionality now that it has been pushed through Parliament without a vote. That is, as far as the law itself goes.
As for the protests, I mean, part of them is very much trying to make the government buckle under the weight of disruptions to the economy. It's not
just the people in the streets.
So yesterday, we saw, again, the blocking of refineries and depots, and that's having an impact at the petrol pump. There are people now having to
queue for gas stations in some parts of the country. There is of course, the question of the garbage and I think the question is how long that
battle of wills can go on whether the trade unions can keep up that pressure and continue to cause as much disruption to everyday life as they
can and for how long they can maintain that.
For the time being, polls do suggest that the people are behind the movement and against the law, about 70 percent against the raising of the
retirement age from 62 to 64. I think the hope on the part of the government is that time will help and that they will be more able to move
on to other things.
[16:25:10]
BELL: But given the uproar in Parliament, given the anger we've seen on the streets, it's very difficult even looking beyond this particular
reform, to see what can really be done over the course of the next four years of the end of Emmanuel Macron's second term. Remember, this was a
reforming President, who hoped this reform would be done swiftly, that he could move on to the others that he really considers will be the legacy --
his legacy once he leaves office.
A lot of questions about exactly what happens next -- Zain.
ASHER: All right, Melissa Bell, live for us there. Thank you so much.
Bangladesh has spent a decade trying to end its reputation for sweatshop labor. We will hear from the head of the country's Garment Manufacturers
Association next.
(BEGIN VIDEO CLIP)
FARUQUE HASSAN, PRESIDENT, BGMEA: This is a completely transformed working condition. It is completely different now.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
ASHER: Hello, everyone. I'm Zain Asher. There is more QUEST MEANS BUSINESS in a moment when Bangladesh's garment industry has long faced
criticism over its working conditions. The head of the country's Garment Manufacturers Association tells Richard Quest, the situation is improving.
And just weeks ago, it seemed the Ukrainian City of Bakhmut was about to fall into Russian hands. Now, there are signs Moscow's momentum is stalled.
Before that though, these are the headlines at this hour.
The Pentagon says 10 rockets targeted a US base in Syria Friday morning. The barrage follows a retaliatory strike by the US on its Syrian facilities
linked to Iran's Revolutionary Guard.
This video is said to show the outcome of the US strike. Some 900 US troops are in northeast Syria fighting against ISIS.
Another legal setback for Donald Trump. A US Federal Judge has ordered several of his former White House aides to testify before a grand jury
including ex-Chief-of-Staff, Mark Meadows.
The grand jury is investigating efforts to overturn the 2020 election. Sources say the judge rejected Trump's claims of executive privilege.
And China says it has never and will never ask companies for data on foreign users. The Foreign Ministry said that US lawmakers who want to ban
TikTok are part of a xenophobic witch hunt. TikTok's CEO, Shou Chew, faced a five-hour grilling yesterday on Capitol Hill about the company's data
security and ties to China.
The hero of Hotel Rwanda will soon be a free man on Friday. The president of Rwanda commuted the 25-year sentence of Paul Rusesabagina. He was
convicted of terrorism-related charges in what his supporters call a politically motivated show trial. Rusesabagina is best known for saving
hundreds of Rwandans during the 1984 genocide.
[16:30:59]
Garment factories in Bangladesh were pushed to improve working conditions after some major tragedies a decade ago. The deal responsible for many of
those changes is set to expire this year. Nearly 200 companies signed the Bangladesh accord back in 2013. It allows retailers to be held liable if
their factories don't meet safety standards. The garment industry plays a huge role in Bangladesh's economy.
Before the pandemic, it accounted for 80 percent of exports and four million jobs. During his recent trip to Bangladesh, Richard Quest spoke to
the head of the country's Garment Manufacturers Association. He asked about their working conditions.
(BEGIN VIDEOTAPE)
FARUQUE HASSAN, PRESIDENT, BANGLADESH GARMENT MANUFACTURERS AND EXPORTERS ASSOCIATION: I think it's is better, is -- I think, right now, the working
condition and the safety, we are the best in the world. And we are not stopping there. We believe this is a continuous work. And every day is
improvement. If I can give you some data, right now we have the highest number of green factory in the world.
In terms of energy efficient, in terms of environmentally and in terms of safety.
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: Right. But what about the people who do it? The conditions, the solvents that they're having to work with,
the machinery, the hours, the bank conditions?
HASSAN: It's completely transformed. We are -- we are --
(CROSSTALK)
QUEST: Your organization to say, it's still got a long way to go,
HASSAN: We are working on that. But it is the way it is happening. We are bringing and we want -- and we welcome all our friends, partners,
development partners to see our factories. And seeing is believing. So, this is a completely transformed working condition. It's completely
different now.
QUEST: How significant is the pressure that comes to bear from the ultimate retailer? I tell you what I mean. You know, we always have those of us in
the developed economies. If we put pressure on the company to say we won't buy that stuff, then the company puts pressure on the manufacturer which
puts pressure. It comes down the chain. Is that true?
HASSAN: It is still happening. And that's the thing we are trying to say no, because I know -- because we have done a huge investment in terms of --
that's why I'm saying that we have upgraded our machine technology and process. So, that's why the physical work of our employees have reduced
drastically. And we have done environment-friendly factory, workplace safety but the other thing is that the price, we are really looking for
ethical price.
Fair prices. And we are giving the best things to our employees. But we know that. We need to do more of that.
QUEST: Is it possible? You see when you have -- in the U.K., in the U.S. T- shirts at six bucks, five pounds, and you think that the cotton had to go across one ocean and then they'll get finished goods have to go back across
the ocean. We -- does the West still need to pay more for its finished goods from places like Bangladesh for RMGs?
HASSAN: Actually, they are not paying more because whatever --
(CROSSTALK)
QUEST: Do we need to pay more?
HASSAN: No. I think because what we are doing also, we are working on recycle. We are using each and every west to recycle that one and that's
why the raw materials, we don't need to import much raw materials from abroad. So, we believe that the recycling industries in one day, still some
West are using as a landfilling, but we are making Bangladesh the recycling hub. So, we will import West and we will produce on garments.
QUEST: What do you mean by an ethical price?
[16:35:07]
HASSAN: Ethical price is say clearly that fair prices. I mean, as I said that because of the pressure from the brand that we can get cheaper from
another country, pay this one and I can get it. So, the fair price is what we want is that what you call is a -- we call it the ethical price is that
the wages, the factory, whole process, the work we are doing, and the quality we are doing that they should pay prices, so that we can also pay
better salary, better facilities to our employees.
QUEST: The race for cheaper labor. Eventually, you'll be surprised by some of the parts of the world. Do you not need to do what China has done, which
is invest more in the real high-tech specialized textiles? At the moment your bulk, but China's also bulk but that's not doing printing and screen
printing and has technology no one else has. Is that your future?
HASSAN: Yes. And we are doing. We are already upgrading ourselves. In machinery we have done. In technology we're doing and we are also going for
high-end textile production so that we don't have to be only cheap goods production. So, I believe this is -- we are not behind China much. So, we
are reading ourselves. Every day we are changing ourselves.
QUEST: That's your future.
HASSAN: Yes. And we believe that the innovation design development, that's the area we are working and also recycle, decarbonization, these are the
area we are working. And I believe Bangladesh are doing more value-added item. And in coming days, Bangladesh will be one of the leader in garment.
Though, we are the second largest apple exporter in the world. But in denim we are already become number one. We are even on top of China.
(END VIDEOTAPE)
ASHER: Israel's Attorney General says that Benjamin Netanyahu has a major conflict of interest like corruption charges against the prime minister may
complicate his plans to change the Supreme Court. That's next.
(COMMERCIAL BREAK)
ASHER: Just in to CNN. Explosions were heard near an Iranian malicious site near the Deir Ezzor. That's according to a resident. It's the same city the
U.S. coalition struck on Thursday after an American contractor was killed.
[16:40:09]
In the meantime, in Ukraine, Russia is suffering staggering losses in Bakhmut. One of Kyiv's top generals says the Russia is having to send in
reinforcements. But the battle is far from over.
CNN's Ivan Watson reports from Ukraine.
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): Russia's war machine appears to be losing momentum in Bakhmut, where Ukrainian
commanders now exhibit optimism.
After hurling themselves for months against Ukrainian defenders in the city on Ukraine's eastern front, Russian troops and mercenaries have made only
incremental gains and suffered staggering losses.
Russian forces in Bakhmut or depleted, says one of Kyiv's top generals. And the Ukrainian counteroffensive could soon be launched. Harder to judge. The
enormous sacrifice Ukrainians have made in their costly defense of this embattled city.
But while Russia's efforts have slowed, they have installed. Ukraine claims the area has been hit with more than 200 strikes in the last day alone. And
Russia is sending in backup to compensate for the growing losses of Wagner private mercenaries with Russian airborne troops now playing a greater role
in the fighting around Bakhmut, according to the Ukrainian military.
ANDRIY BABYCHEV, SERVICEMAN, UKRAINE'S 93RD BRIGADE (through translator): I want to say that the situation in the south is not improved, in such a way
we can talk about some kind of victory or anything like that. On the contrary, the enemy is applying even more pressure.
WATSON: President Volodymyr Zelenskyy earlier this week paid tribute to the defenders of Bakhmut, visiting Ukraine's eastern front to hand out awards.
The deadly grudge match over Bakhmut is far from over. The Ukrainian military says it's using the front lines of Bakhmut to bleed and exhaust
the Russian army. But how long can Ukraine afford to fight a bloody war of attrition against its much larger, stronger enemy?
Ivan Watson, CNN, Zaporizhzhia, Ukraine.
(END VIDEOTAPE)
ASHER: Protesters descended on Downing Street as Israel's Benjamin Netanyahu arrived to meet with British Prime Minister Rishi Sunak. The
demonstration over Israeli government's judicial reforms was organized by a group of Jewish Israeli Britons. Sunak's office that he raised reforms
during the meeting. The British Prime Minister stressed the need for democratic values adding that they underpin Britain and Israel's
relationship.
Here's our Salma Abdelaziz with more.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Those 60,000-home demolition.
SALMA ABDELAZIZ, CNN CORRESPONDENT: We're just across from 10 Downing Street. The Prime Minister's office of course at two simultaneous protests
are taking place. On this side over here, you see protesters with Palestinian flag. They're increasingly concerned about the uptick in
violence in the region about the increasingly deadly raids by the Israeli military. And this is not unusual.
You would expect anytime the Israeli Prime Minister visits London to see a protest like this. What is unusual is this demonstration right here. To see
protesters, we the Israeli flags demonstrating against the visit of an Israeli Prime Minister. That is unusual. But they tell us they're echoing
the sentiments that they're hearing on the ground in Israel. Hundreds of thousands of people who take into the street in recent months outrage at a
judicial overhaul legislation that's being pushed by Prime Minister Netanyahu that these protesters tell us will threaten Israel's democracy.
Will erode the checks and balances of that country. Will game Prime Minister Netanyahu autocratic-like powers in these protesters tell it what
they want to see is Prime Minister Rishi Sunak. British Prime Minister Rishi Sunak speak up and speak out against the happening on the ground. And
use this opportunity, use this three-day visit to really condemn Prime Minister Netanyahu's actions and the push for this judicial overhaul.
But I can tell you, that is unlikely to happen. The U.K. and Israel signed a trade agreement, a new trade agreement just a few days ago. So, these
protesters aren't too hopeful that there's going to be condemnation coming from 10 Downing Street. They say Prime Minister Rishi sunnah is going to
carry on with business as usual.
Salma Abdelaziz, CNN, London.
(END VIDEOTAPE)
ASHER: The U.S. has criticized Iran for its destabilizing behavior in Syria. It follows a drone attack. All right. It looks as though U.S.
President Joe Biden and Canadian Prime Minister Justin Trudeau speaking now. Let's listen in.
Two men there walking to the podium set to speak about the very special relationship that exists between the U.S. and Canada as well as some
migration --
[16:45:09]
UNIDENTIFIED FEMALE: Good afternoon, everyone.
ASHER: Let's listen in.
JUSTIN TRUDEAU, PRIME MINISTER OF CANADA: It is a real pleasure to welcome my friend President Biden, Joe, to Canada this week. We had the opportunity
to discuss the progress made under the February 2021 roadmap for renewed U.S.-Canada partnership. A plan our country's put forward a month after the
President was sworn in.
TRUDEAU (through translator): Today with President Biden, we've made progress on several important files and I'd like to mention some of our
common priorities. Growing the middle class, strengthening the economy, making life more affordable for people, fighting climate change and
protecting the environment. Protecting our citizens and our values.
In this serious time with all the challenges we face. We're doubling down on our partnership, and on our friendship. As I said earlier today,
economic policy, climate policy and security policy aren't just connected. They're one in the same. But the President and I agree on this, and that's
why we launched a joint energy transformation task force that will accelerate our work on clean energy and clean tech.
This will include securing and strengthening electric vehicle and critical minerals supply chains, and other eras to advance our collective energy
security. Of course, an integrated approach means creating good middle- class jobs for workers on both sides of the border. And it will make our collective economic growth stronger and more resilient. Securing and
developing critical minerals supply chains is essential to making things like batteries, computers, phones, and semiconductors.
TRUDEAU (through translator): Canada and United States have agreed to put in force a system for building semiconductors. And so, I'd like to announce
today that we have signed an agreement with IBM to extend to the ability and capacity for the installations in Bromont, Quebec to develop new
capacity. Demand is on the rise as his competition. Canada's investment in semiconductors which will be up to $250 million will make it possible to
enhance the competitivity of the North American economy, create jobs for the middle class and to draw on Canadian talent. In addition to reducing
pollution.
In addition to cutting pollution and fighting climate change, the President that I also worked on protection, protecting more nature as well. Canada
and the U.S. share the longest land border in the world. We share three oceans and the Great Lakes. The Great Lakes are a source of drinking water
for 40 million people, and this shared resource needs to be protected. This is why Canada will make a major new investment of $420 million to continue
safeguarding the Great Lakes for generations to come.
Whether it's on protecting our shared waters, including in the Arctic, conserving biodiversity or building strong net zero economies, Canada and
the U.S. will continue to work together as partners. We'll also continue to work together as partners to keep our people safe. Keeping people safe also
includes keeping asylum seekers safe. Keeping our borders secure, and keeping our immigration system strong.
Both of our countries believe in safe, fair and orderly migration, refugee protection and border security. This is why we will now apply the Safe
Third Country Agreement to asylum seekers who cross between official points of entry. After midnight tonight, police and border officers will enforce
the agreement and return irregular border crossers to the closest port of entry with the United States.
TRUDEAU (through translator): When the agreement comes into force as of midnight tonight, border officers will return people crossing the border to
the closest Canada-U.S. border crossing. Our teams have worked hard to go to achieve this agreement. All of the work will make it possible to deter
irregular immigration at our borders, while at the same time we increase regular migration and immigration.
It's always our top priority. Last year I had the opportunity to visit NORAD personnel in Colorado. NORAD plays a central role in detecting,
deterring and defending against aerospace threats to our shared continent.
[16:50:05]
NORAD has protected North America for over 60 years. And we're continuing our work to meet the evolving security challenges we face today. Canada is
making major investments to modernize surveillance systems. And on top of that, we will invest to modernize and build new infrastructure to support
the arrival of our 88 new F-35 fighter jets so that most importantly, we can support our men and women in uniform who keep us safe.
This bolsters Canada's defense abilities for the coming decades. Of course, protecting our countries also means continuing our work to make our borders
more secure and keep people safe. The opioid overdose crisis is having devastating consequences in our communities. We're going to disrupt the
cross-border movement of chemicals used in the illegal production of fentanyl. Canada and the United States will build a global coalition
against synthetic drugs.
We must stop the traffic of synthetic opioids while at the same time focusing on a public health response. If we want to keep Canadians and
Americans safe at home, we have to continue defending our values around the world. Values like democracy, the rule of law and respect for the
international rules-based order. Today, we reaffirmed our steadfast support for the Ukrainian people, as they defend themselves against Putin's brutal
barbaric invasion.
TRUDEAU (through translator): We also talked about other parts of the world that are experiencing difficulties like Haiti. As I said, Canada will keep
Haiti in the heart of the solution for resolving this crisis. Today, I'm announcing that Canada will invest an additional $100 million to provide
better police's support and to the national police force in Haiti. We will also impose additional sanctions on two other members of the Haitian elite
who are benefiting from insecurity and violence.
We are determined to increase international support for Haiti, including through humanitarian assistance. President Biden and I had very productive
meetings. As I said a little earlier, our economic measures are also climate measures, security measures. The President recognizes the
importance of acting on all of these fronts.
Last time we stood together in this very room. You were the outgoing vice president. And we were embarking upon some challenging times in our
relationship as a country. As two friends and countries. I have to say, through our conversations back then, through the work we've been able to do
over these past two years, it has truly been an honor to be able to work with you for the benefit of Canadians and Americans but also to continue to
have a positive impact on the world in a very uncertain time.
Your speech in Parliament a few minutes ago was filled with optimism, grounded in a deep faith in people and the character of the citizens we
serve, and their ability to step up and meet the challenges before us. Like we have for many years, we will continue to work shoulder to shoulder as
allies and friends to bid -- build a better future for Canadians and Americans alike. It is always a pleasure to stand beside you. It is always
a pleasure to work with you.
Right now, it's a pleasure to hand it over to you.
JOE BIDEN, PRESIDENT OF THE UNITED STATES: Thank you very much, Mr. Prime Minister. And I can't leave a challenge we haven't met together when we
sought to do it together. Excuse me. Before I speak to the progress of this trip, I was informed by my national security team on the way over here that
about an attack in Syria yesterday. An Iranian-backed militant groups used an unmanned aerial vehicle to strike one of our facilities causing several
American casualties.
One of our citizens tragically died in that attack. And on the flight up yesterday, I spoke our national security team in order to immediate
response. Last night, U.S. military forces carried out a series of airstrikes in Syria, targeting those responsible for attacking our
personnel. My heart and deepest condolences go out to the family of an American we lost and we're -- speedy recovery for those who are wounded.
But I'm also grateful for the professionalism of our service members who so ably carried out this response. And to make no mistake, the United States
does not -- does not emphasize seek conflict with Iran but be prepared for us to act forcefully, protect our people.
[16:55:11]
That's exactly what happened last night. We're going to continue to keep up our efforts to counter terrorist threats in the region and partnerships
with Canada and other members of the coalition to defeat ISIS. Now, let me get to today's business. It's wonderful we're back in Canada. I'm honored I
had a chance to address Parliament this afternoon. They were very patient. I appreciate it.
And, you know, a little over 75 years ago, in his own address to Parliament, President Truman said, no two nations are called upon to make
great contributions to the world's rehabilitation. And well, we are making great contributions the world's rehabilitation in my view. Today, as we
stand at, as I said, today, an inflection points in history, our nations are once again called upon to lead. And together I believe we're answering
the call.
First, we've unleashed an economic potential of our people, and our partnership, in partnership that generates more than $2.5 billion in trade
every single day. Secondly, we're transforming our hemisphere into clean energy powerhouse, including extending the Inflation Reduction Act tax
credits to electric vehicles assembled in Canada. And as we discussed over the last two days, we're also strengthened our supply chains for critical
minerals in semiconductors that power our everyday lives.
Today, we're making a $50 million available through the Defense Production Act to incentivize more U.S. and Canadian companies to invest in packaging
of the semiconductors and printed circuit boards. I also want to emphasize what I said earlier in Parliament, that Canada and the United States always
will have each other's backs. And we see this through NORAD as we work to modernize the world's only and emphasize again, the only by national
military command. There's none other than the world.
And we see it through NATO where we're ensuring that we can meet any threat. And over the last year, we've seen it through our strong and
unified support for the brave people Ukraine to which the Prime Minister spoke so masterfully today in Parliament. And stepping into up to provide
critical humanitarian aid, as well as security assistance. And for Canada's embrace of Ukrainian refugees.
And as we head to the second year of Russia's brutal invasion, our unity is not going to break. We're going to keep the pressure on Putin through our
historic sanctions and tariffs. And we're going to continue to provide Ukraine with training, equipment, humanitarian assistance it needs and to
defend itself against Russian aggression. And finally, as we deepen the global cooperation, we're also exploring our regional collaboration.
As we discussed today, we're doubling down on our work to disrupt synthetic drugs, which have claimed too many American and Canadian lives. By
bolstering our work together and the North American drug dialogue with Mexico, and building on a new global coalition against synthetic opioids.
We're working to get these killer drugs like fentanyl out of our communities. Ad together under the Los Angeles Declaration on migration and
protection.
And the Prime Minister has already spoken are also making good on our commitment to addressing historic levels of migration in our hemisphere.
Since we created dedicated pathways in the United States, the number of migrants arriving on our southern border has dropped precipitously. And I
commend Canada for stepping up with a similar program, opening new legal pathways for up to 50,000 migrants that come to Canada from countries in
the Western Hemisphere.
Mr. Prime Minister, Canada and United States has always been partners in progress. And today, we're once again called to lead. I know that the
United States can count on Canada to be our friend, doing the hard work, doing the historic work, doing the work that matters and doing it together.
I truly believe we only make a -- we're going to make some great contributions. I am optimistic about the future.
And that's not hyperbole. I'm optimistic. I really am. We're going to make a better future for the people of Canada, the American people, and a
consequence for the whole hemisphere and around the world. Thank you.
UNIDENTIFIED FEMALE: Thank you, Mr. President. Prime Minister. We'll be taking two questions from the American delegation, two questions from the
Canadian delegation. One question, one follow up. Mr. President, first question over to you.
BIDEN: All right, I guess the first person I'm calling on is Josh. Josh (INAUDIBLE) Josh.
UNIDENTIFIED MALE: Thank you, Mr. President. Two questions. One for each of you. Mr. President, you talk today about the security and economic
partnership with Canada.
[17:00:00]
President Xi just went to Russia and expanded China's economic commitment with that country.
END
