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Quest Means Business

Tech Stocks Plunge on Shocking AI Advancement in China; Ceremony Marking 80 Years Since the Liberation of Auschwitz; Flights with Deported Migrants Land Across Latin America; U.S. Allies Brace For Tariffs A Negotiating Tactic; Trump Threatens 25 Percent Tariffs On Canada And Mexico; Palestinians Begin Returning Home To Northern Gaza. Aired 4-5p ET

Aired January 27, 2025 - 16:00   ET

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

[16:00:09]

PAULA NEWTON, CNN INTERNATIONAL HOST: A brutal day for the NASDAQ. As you can see there, tech stocks off better than three percent, and perhaps for

good reason. That is the headline today as we assess China's cheap, AI chatbot that manages to shock the tech world and send global markets

reeling.

CNN is on the ground in Guatemala, where migrants deported from the US are now landing.

And Elon Musk addresses a German far-right rally. The Holocaust memorials chair calls those comments dangerous.

Live from New York. It is Monday, January 27th. I am Paula Newton in for Richard Quest and this is QUEST MEANS BUSINESS.

And a very good evening to everyone. Tonight, a Chinese startup has shocked US markets and everyone in between by threatening America's lead in AI. Now

the NASDAQ, as we were just discussing, finished sharply lower. You can see there, that's NVIDIA's stock itself. Other chip stocks were also hit

particularly hard, so were tech giants like Microsoft and Google.

Now the startup is called DeepSeek. It says its AI model costs a fraction of the ones built by Silicon Valley. DeepSeek's app quickly soared in

popularity.

Now, the company has now limited new signups and says it was hit by a cyberattack. Now, analysts say DeepSeek performs about the same as other

chatbots. You ask it a question and it generates a response. The difference is what lies under the hood here.

DeepSeek says its model costs less than -- wait for it -- $6 million to train. Compare that to $65 billion Meta alone plans to spend on AI this

year. Now Google and Microsoft also making huge investments. DeepSeek says it relies on NVIDIA's H-800 chips. US tech giants have unrestricted access

to the more powerful H-100 chips.

Clare Duffy has been following all of this for us from New York. Could you let us know what is new here? Because this hit the markets, and as I said,

everyone else is interested like a thunderbolt today.

You know, what role could this play in the AI race and certainly in the economy of the future?

CLARE DUFFY, CNN BUSINESS WRITER: Yes, Paula, this really is a wake-up call for the American tech companies that, as you said have been spending

billions of dollars to build out these advanced AI models. Now we have this competitor from a one-year old Chinese startup that essentially does the

same thing as the advanced models from OpenAI, Meta, Google, you name the big Silicon Valley tech company and DeepSeek as you said that it spent $5.6

million to build this, which is so far and away of just a fraction of the amount that these big tech companies have been spending.

A big piece of what is different here is that DeepSeek queries require significantly less computing power, it is less data center resources to

answer each question. So you ask it a question, and it requires far less than the competing models from OpenAI or Google.

What that means is that there isn't going to need to be this significant spending on data center resources, that we have been expecting that these

big tech companies have said they need to make in order to continue to advance on AI. DeepSeek has essentially proven that you don't need those

significant data center build outs, because it has created this much more efficient model.

So this really calls into question the whole evolution of the AI ecosystem, the way that the big American tech companies have said that this rollout is

going to go. The other big question here is that, of course, this is a Chinese tech company that has been subject to the export restrictions in

the US. The US has restricted the export of the most advanced AI chips.

So DeepSeek has also proven that it can use these less powerful chips to build this competitive model, which really could raise big questions for

NVIDIA, the maker of the most advanced AI chips, about whether everybody can start to do this with these less advanced chips that don't cost as

much. So really big questions happening across the industry today.

One thing I will note that is really interesting about DeepSeek is that it appears to have some of the same censorship that we see on other Chinese

platforms. For example, we asked it today to tell us the story of what happened at Tiananmen Square, and the platform said it cannot answer.

So I think we may not necessarily see this wholesale shift of consumers onto this platform. Obviously, it is very popular and buzzy this week, but

this is an open source technology, which means that anybody can use it, anybody can build on top of it, anybody can incorporate it into their

systems.

And so I think that is really the big question, it is not whether we see people shift to DeepSeek, but what does the rest of the industry do with

this new technology, this efficiency that they have shown is possible.

[16:05:02]

NEWTON: Yes, they have apparently built a better mousetrap, and they've put the plans online.

Clare Duffy for us, thanks so much for that very efficient explanation of what's going on here. Appreciate it.

Now, tech investor Marc Andreessen is calling it a Sputnik moment for artificial intelligence. Now, it is no secret, of course, that the US and

China have been in an AI arms race. The US has tried to block Beijing, as Clare was just saying, from accessing its high end chips, putting quotas on

chips other nations can buy in order to prevent their resale.

It has also stopped China from buying certain chip making equipment. Now, DeepSeek apparently building a powerful platform despite all of those

curbs.

Michelle Guida is the CEO of the Krach Institute for Tech Diplomacy at Purdue University, and she joins us now.

Really good to see you, and have you weigh in on this. Okay, I want to talk kind of, you know, big, medium and small. So if we deal with the big

picture, let's talk about geopolitics and the economic consequences first.

Do you think China's boast here, and they are boasting about it with DeepSeek is a wake-up call to the US and if so, why?

MICHELLE GUIDA, CEO OF THE KRACH INSTITUTE FOR TECH DIPLOMACY AT PURDUE UNIVERSITY: It is absolutely a wake-up call, and I think it continues all

of the momentum that the United States has placed on becoming the global leader in the world capital for artificial intelligence.

We saw a big announcement last week with the Stargate Project and a number of private sector companies joining in, including OpenAI to make sure that

the United States leads and that we unleash our own innovation and our energy in order to do that and this just doubles down on that imperative.

Our long-term reality is that we need to be the global leader in AI with our trusted allies and partners, so that it reflects our interests and our

values, and not that of China and the Chinese Communist Party.

NEWTON: But how best to do that? Because it does seem as if the Biden administration was trying that.

GUIDA: Well, we have to do what we do best. We have to do it faster, smarter and better and that's innovate at scale. So the question is, how do

we launch our next ten Stargate projects? How do we unleash even further American energy across all forms of energy in order to power that

innovation? How do we graduate more engineers?

The Krach Institute is at Purdue University. Purdue is going to graduate more engineers than any other top university in the country. How do we do

that even greater? There need to be ten more Purdues.

So we need more engineers. We need more energy. We need more innovation. The good news is that's our superpower. We just need to do it faster.

NEWTON: Now I want to go to the medium picture then. This would be these American companies themselves, whether it is a chip or the modeling or the

AI infrastructure. Is it true that you believe that these companies can spend a lot less right now, and that might pit one competitor against the

other, but in general, in terms of the economic architecture of this, wouldn't this look better for all companies?

GUIDA: I think we will find out in the coming days. I think as we see today, the markets are reacting and they're reacting to DeepSeek's self-

reported information that did this thing on the cheap and I think we will find out.

There is a lot of question marks around that and do we need to ask if I believe it? Do we trust what a Chinese company has put out? And I think if

we look at the Chinese playbook, whether it is the government or companies, over time, we know that they often fudge some of their self-reported

numbers.

So maybe they made it this cheap, maybe they didn't, and I think we will learn that in the coming days. Either way, I think it is a nice catalyst

for American companies in the United States and partners and allies across the world to make sure that we are doubling down on our efforts to lead in

AI.

NEWTON: And, you know, our correspondent there, Clare Duffy, you know, said this as much. This is China once again, understanding and proving they say

that they can actually beat the United States at its own game. Gosh, it makes the TikTok concern seem so 2024 right now.

In the here and now, should consumers worry about China in AI? And I mean, should you even download this app, even if it is better? What difference

will it make to who has your information and what they do with it?

GUIDA: Well, it all comes down to trust. Do you trust a Chinese company? Do you trust an app that is owned by a Chinese company with your information

with its algorithms? That's a big question around TikTok.

It was the same question around Huawei that many, many countries across the world have banned because they don't trust it. And so trust is the ultimate

question here and that is why the technology of the future has to be trusted technology.

And it is not just on governments or business leaders to be thinking about this, but to your point, the more that American citizens and consumers are

tracking this, the more empowered it will be.

NEWTON: And finally, before I let you go, would you use it? Have you used it? Have you noticed anything about it that we should all be clueing into?

GUIDA: I have not used it. I don't make a habit out of downloading Chinese apps for those very reasons, because I value my own privacy. But in talking

to a lot of folks, I think there are some -- there is definitely some really good capabilities and then some questionable, including translation

and other things.

[16:10:02]

So I think we are talking to a number of sources, both in government and in tech that are pressure testing and stress testing the platform and just how

competitive it remains to be seen. But either way, a good nudge for the United States.

NEWTON: A nudge, and as we've pointed out, likely good smart people in the United States and around the world, quite frankly, working on this open

sourcing right now and having to figure out how they did it.

Michelle Guida, thanks so much for explaining all that to us. Appreciate it.

GUIDA: Thank you.

NEWTON: Now, coming up for us, we've been following immigration raids across the United States this weekend, countries in Central America are now

taking in migrants. We will take you there in a moment.

(COMMERCIAL BREAK)

NEWTON: Today marked the 80th anniversary of the liberation of the Auschwitz Nazi Death Camp. Germany's chancellor Olaf Scholz and Britain's

King Charles were among those who gathered on the grounds of the former camp, where more than a million people, mostly Jews, were murdered.

CNN's Melissa Bell was at today's Remembrance Ceremony.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN CORRESPONDENT (voice over): Their numbers dwindling, but their resolve intact. Survivors supported by their families making the

difficult journey back to Auschwitz-Birkenau the largest and deadliest of the Nazi camps.

JONA LAKS, HOLOCAUST SURVIVOR: At my advanced age, it is really courageous to come back, I must say it. I didn't want to, but it is necessary. It is

necessary for the world to know.

BELL (voice over): Jona Laks was just 14 when she was brought by cattle cart to Auschwitz with her twin sister, Miriam, and their older sister

Chana, in 1944. By then, most of the more than one million people who passed through these infamous gates had been sent straight to their deaths

in the gas chambers.

But Jona and Miriam say they were spared by the notorious Nazi doctor, Josef Mengele.

LAKS: Obviously, they were satisfied to get an additional pair of twins for his notorious experiments.

BELL (on camera) Were you and Miriam experimented on?

LAKS: We were. Of course.

BELL (voice over): The serial number tattooed on her arm may have faded, but the memories of the survivors gathered at Auschwitz on Monday were

razor sharp.

[16:15:04]

TOVA FRIEDMAN, HOLOCAUST SURVIVOR: I held on tightly to my mother's hand in the dark cattle cart for countless hours, while the cries and the prayers

of so many desperate women permeated my soul and haunt me to this day.

BELL (voice over): Eighty years after the camp's liberation, this may be the last time that the voices of survivors are heard at Auschwitz.

MARIAN TURSKI, HOLOCAUST SURVIVOR (through translator): Those who lived to see freedom, there were really hardly any, so few, and now there is only a

handful left.

BELL (voice over): It will soon fall to others, academics, monuments and museums to make sure the enormity of what happened here isn't forgotten.

BELL (on camera): How important is it that the world marks this and understands what happened?

LAKS: Perhaps it would hopefully remind the world that human life is sacred and should be honored.

BELL (voice over): Melissa Bell, CNN, Auschwitz-Birkenau.

(END VIDEOTAPE)

NEWTON: Nearly a thousand people were arrested over the weekend in immigration sweeps right across the United States. Raids were reported in

several states, including Florida, California and Texas.

President Donald Trump's border czar said the operations prioritized criminal aliens and deportation flights have begun in countries in Latin

America.

Now, David Culver is on the ground for us in Guatemala City, where one of those planes carrying migrants landed just a short time ago.

David, it is really good to have you on the ground there. How is Guatemala receiving these migrants and how have they described to you their

cooperation with the United States on this?

DAVID CULVER, CNN SENIOR US NATIONAL CORRESPONDENT: Hey, Paula, good to see you.

You pointed out that most recent plane, and actually you're right. It just touched down a few minutes ago and that is a military aircraft, we should

point out which, as you were probably following over the past 24 hours or so, between Colombia and the US was the point of contention.

And that's really what's new between Guatemala and the US. Going back to last Thursday, Guatemala began to allow military aircraft from the US to

bring migrants who are being deported from the US back here to Guatemala.

Now, they still have the commercial chartered aircraft doing that as well. And we were given an idea as to what that looks like. We were given an

insight as to what folks are dealing with as soon as they step off onto the tarmac at the military side of the airport here in Guatemala City.

And it was interesting hearing from many of them, because there was about 80 on the flight that we met, and many of them said that they were as soon

as they took off, handcuffed on the flight, and it was about an hour out from landing after they had cleared out of US airspace, where they then

allowed to get out of the handcuffs, it was removed from them, and then they were able to step freely onto the tarmac, where they were greeted by

the vice president here in Guatemala, who we spoke with.

And the vice president was even emotional receiving some of these citizens back to their country. Many of them hadn't been back for several years,

some of them decades. And they had fled during a very tumultuous time during the 30-plus years of Civil War that was brutal and violent here. So

they weren't quite sure what they were returning to.

You had some who seemed defiant, even determined to figure out somehow to get back to the US even just being here only a few minutes.

(BEGIN VIDEOTAPE)

CULVER: You have a four-year-old daughter and a four-month-old son.

FIDEL AMBROCIO, MIGRANT DEPORTED TO GUATEMALA: Yes. I left them.

CULVER: And they're with your wife in the US.

AMBROCIO: Yes. And I am scared, because now with Trump, they say I have to go. You know, go with the criminals. But we are not a criminal, you know.

CULER: But you have a trespassing conviction.

AMBROCIO: Yes. But for me, it is not like that.

CULVER: To you it is not as serious a crime.

AMBROCIO: Yes. I am not.

CULVER: Do you think you'll go back?

AMBROCIO: I have to go back, for sure.

CULVER: You'll find a way back.

AMBROCIO: Yes.

(END VIDEOTAPE)

CULVER: It doesn't matter who is president of the US he says, he is going to figure out a way back into the United States. He says whether that's

legally or illegally. He hasn't really thought about it, but he is determined to make it happen.

Now, compare that to several other folks who we met who said they have no interest now in going back to the United States. For them, as soon as they

had gone through this ordeal, one woman, who at 43, had been seven months already in immigration detention in the United States, said, this is it.

She is here now. She is settled.

She even has adult kids and grandkids in the US who is she is working to get out, even though they are documented, but she just says she wants her

whole family together back here in Guatemala, which is interesting because it speaks to perhaps some of the deterrent factor that President Trump and

that administration is hoping to put out there, and it seems to be having an impact in many regards here.

Now, all in all, you hear from the vice president and she is trying to really dance this fine line, Paula, between the US and Guatemala, trying to

keep relations stable.

[16:20:08]

But at the same time, she points out that the number of migrants being accepted since President Trump took office has not changed. It has

basically been the same as what they were experiencing, if not a bit lower under President Biden.

So it does not seem like there has been some major surge in increase in deportations from the US to Guatemala as of now. And the only thing that

they stress is different is the fact that military aircrafts are being used in these deportations, and there is no indication the vice president tells

me that they are going to try to stop that anytime soon.

I think they are very aware of what that caused with Colombia yesterday, and knowing that Secretary Rubio is going to be here in the coming days,

they want to make sure relations stay in a good state of play.

NEWTON: Yes, things are different with a military aircraft. But again, all the attention and all the photo opportunities as these people are being

deported. We will wait to see what kind of numbers come forth in the coming weeks and months.

David Culver, as I said, so good to have you on the ground there. Appreciate it.

Now, some breaking news just in to CNN. President Donald Trump has fired Justice Department officials who worked on his criminal investigations.

Now, that's according to sources familiar with the actions.

A letter from the acting attorney general says they cannot be, "trusted to faithfully implement the president's agenda." Now, some of the individuals

who worked with Special Counsel Jack Smith, who has dropped two criminal cases against Mr. Trump.

Katelyn Polantz has been following all of this for us from Washington.

And this saga continues. You know, they're fired. This is not exactly the norm, although they might have been expecting this to be the likely

outcome, and we have to point out, right, many of these people are federal employees that are just doing the job they were ordered to do by the

Department of Justice.

KATELYN POLANTZ, CNN CRIME AND JUSTICE SENIOR REPORTER: It is not the norm in any sense, and this affects more than a dozen people who worked on those

cases against Donald Trump, according to the sources that we are talking to.

What the letter is that went to them was saying that they are removed from federal service, effective immediately. These are career folks, people who

like you said, would have been already working in the Department of Justice, went to assignments, including in the Special Counsel's Office of

Jack Smith, to work on those two criminal cases against Donald Trump that went through the courts, now are dismissed because he is back in the

presidency, and then went back to their home offices or other parts of the Justice Department. That is who is getting the notifications.

And it really is striking language. This isn't a Saturday Night massacre as we talk about American history, this is in broad daylight on Monday

afternoon massacre.

One of the things that is written in this letter, removing people from their service as career prosecutors at the Justice Department says, "Given

your significant role in prosecuting the president, I do not believe that the leadership of the department can trust you to assist in implementing

the president's agenda faithfully."

So this clearly is part of the retribution and the political blowback that Donald Trump has wanted within his Justice Department. This letter that

went out to folks in federal service as career prosecutors, it came from the acting attorney general of the Justice Department, so not even somebody

who has been through a Senate confirmation process, but someone who Trump has installed since he took office as the president.

And it also comes at the same time as the US Attorney in Washington, DC, so the person who oversees the office that handled all -- more than a thousand

cases against individual Capitol rioters as that person, that interim US Attorney also says he wants to investigate prosecutors that worked on those

felony charges against individual rioters.

So this is quite a significant move by the Trump administration, by the Justice Department, and very, very out of the ordinary and out of line,

which is with how career prosecutors are generally handled and treated whenever they do finish any sort of role or case that they're working on.

NEWTON: Yes. And we will see if there are any repercussions from this or any kind of legal action that they themselves can take.

Katelyn Polantz, thanks for jumping on the story for us. Appreciate it.

Now, tens of thousands of Palestinians are returning to Northern Gaza. We will talk about those who are making the journey back to see what's left of

their homes.

(COMMERCIAL BREAK)

[16:27:39]

NEWTON: Hello, I'm Paula Newton and there's more QUEST MEANS BUSINESS in a moment. But before that, the headlines this hour.

Now, a number of US tech stocks are sinking after the unveiling of Chinese AI startup DeepSeek. The company produced a ChatGPT like model that can

operate at just a fraction of the price of models from American tech giants Meta, Google and OpenAI.

The news sent the NASDAQ tumbling with NVIDIA stock at one point during the day falling nearly 20 percent.

Britain and the EU are condemning what they call a sham election in Belarus. Longtime leader, Alexander Lukashenko was returned to office

Sunday. He has been in power for more than 30 years now. Britain immediately imposed new sanctions on Belarusian officials and Defense

companies.

After his 2020 election win, Lukashenko ordered a harsh crackdown on protesters and the opposition party.

Now, White House officials say President Trump is soon expected to sign an executive order banning transgender military service. He is also expected

to end the military's efforts at diversity, equity and inclusion. The new Secretary of Defense, Pete Hegseth, was sworn in over the weekend.

Hegseth said he will ensure these orders are complied with rapidly and quickly.

Now Colombia has walked back from the brink of a trade war with the United States and is sending its own planes to pick up Colombian migrants that had

crossed into the United States. Now, President Trump threatened immediate 25 percent tariffs after Colombian President Gustavo Petro blocked US

Military flights carrying migrants on Sunday. Within hours, the two sides were able to come to an agreement.

Now the episodes, of course, is sending a warning to other countries. Colombia has a long and good relationship with the United States, and other

allies may find themselves in the crosshairs.

Donald Trump has, of course, threatened a 25 percent tariff on goods from Canada and Mexico. The Peterson Institute warns that measure could wipe two

percent off Mexico's growth rate, and it could lower Canada's GDP by some $100 billion.

Jean Charest is a former deputy prime minister of Canada and a member of the newly formed council on Canada-US relations, advising Canada on how

best to counter the American tariff threat. It is good to speak with you again and good to see you.

JEAN CHAREST, FORMER DEPUTY PRIME MINISTER OF CANDADA: Thank you, Paula.

NEWTON: OK. So, you and I both know there are two ways we can play this, right? You can be transactional. You can go along to get along, even if the

Trump administration does impose these tariffs. And then there's the theory that the best way is, look, pound the table. Be tough. Which are you

advising to the Canadian government right now?

CHAREST: Well, the Canadian government, Paula, is going to be tough and will respond in kind if the American administration does 25 percent

tariffs. I mean, there will be a strong response. It'll be as robust as what the American administration put in front of us. And we will defend our

interests. But as we do that, Paula, we also, you know, we want to work with our American neighbor. We've always done that.

It's in our mutual interest to do that. And by the way, Canadians understand the difference between elected officials, the United States, Mr.

Trump and his administration and the American people. With whom Canadians just have an outstanding relationship on a day-to-day basis.

NEWTON: It doesn't -- it doesn't seem to matter to President Trump, no matter how much good will there is across the table or his good friendship

with Wayne Gretzky, the Canadian hockey star. But I want to ask you, because you've been in this position for -- as -- bless you. As premier of

Quebec. Do you believe energy should be put on the table in terms of a counter tariff? So, it doesn't mean necessarily blocking energy but, you

the current premier of Quebec right now, Mr. Legault, could cut electricity to the very corner of Manhattan that I'm sitting in right now, or just

impose another tariff on it.

CHAREST: Paula, everything is going to be on the table. I doubt that you'll hear Canadian officials talk about what they intend to do until they

actually do it, which is the way that we're going to manage this situation. In the case of energy, it is a huge relationship. You consume 20 million

barrels of oil every day. You produce 13 million. Canada supplies you with four million. You have a deficit. We supply America with 60 percent of the

foreign oil.

They consume almost all of the foreign natural gas comes from Canada. Hydroelectricity is part of that. There's no one, though, Paula, who's been

out there saying we're going to cut it off. But there are other options on how we could deal with energy to be able to make our point. We don't --

we'd like -- we don't -- wouldn't want to do that, but if we have to make her point, we will.

NEWTON: And it is a point that many have been making, and yet it doesn't seem to be getting through. Most believe that President Trump will levy

tariffs in some form. I wanted to hear from you, as I know how much you deal with this, about how this is affecting business between the three

countries, right? That already have, I'll say a trade deal in place. One that the first Trump administration negotiated.

I mean, orders aren't being placed. Investments are being sidelined. Do you think -- do you see it having an effect?

CHAREST: I work for a law firm here in Montreal, yes. Uncertainty does create a chill in investment. That being said, we have an administration

that has a real dilemma. Mr. Trump says he wants a growth agenda of reducing taxes, reducing regulations, cutting government -- the size of

government and he has a tariff policy, Paula, that is exactly the contrary of that. The tariff policy will increase the cost of living, inflation and

interest rates. Sorry.

NEWTON: In terms of what you would advise leaders going forward, whether it's Canada, Mexico or, you know, the E.U. allies are also on notice here

how to best deal with Donald Trump. Everybody famous -- famously says that he's transactional and he needs a win, and yet this administration, the

second time around seems different.

CHAREST: We know Donald Trump. We saw him operate in his first mandate. We understand that it's different in the second mandate, by the way, that he's

much more in a hurry to do a number of things, more adept at dealing with the administrative issues he has to deal with that being said, we're going

to deal with this situation with a great deal of firmness, and we have some of the things that the United States needs very badly and can't get

elsewhere.

That includes energy. It includes nuclear, for example, uranium. It includes strategic minerals. It includes a lot of food stuff, things like

potash, Laura, that is key to the American agricultural sector. Every farmer in the United States should have a very hard look at a tariff on

potash, because this is certainly not a good idea if you want to be able to operate your farm at a reasonable cost. So, there's a whole series of

things on which we depend on each other.

[16:35:04]

And if Mr. Trump chooses to go down this route, well, so be it, we will be there to respond.

NEWTON: And we will leave it there for now. Jean Charest for us live from Montreal. Appreciate it.

Now, tens of thousands of Palestinians are returning to what's left of their homes in northern Gaza today. Men, women and children on foot

carrying whatever belongings they have left, are now facing the mass destruction that cloaks their neighborhoods.

CNN's Jeremy Diamond reports from Tel Aviv.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT (voice-over): Today, the masses of people trekking up Gaza's coastal road are not being forced to

flee and returning home. The Palestinian people are going back to their homes, this man shouts, announcing his joy to anyone who will listen. It's a great happiness. We

feel like we can fly. After being displaced for months on end, tens of thousands of Palestinians are finally returning to Northern Gaza shielded

by the guarantees of a six-week cease fire.

This river of humanity flows for miles and miles, underscoring the magnitude of the last 15 months of war. For many, like Eyad al Masri (ph)

their journey began in southern Gaza, taking down their tents they hoped forever.

I'm taking these four bags and going back to my house, Eyad says. I don't know if it is still standing or not, but I'm going back to Beit Hanoun.

People quickly crowd around a few busses heading north. Babies and belongings hoisted with urgency. Others carry what they can, taking their

chances on foot. Trudging through this uneven coastal road, young and old alike are determined to push past fatigue and return home. For the first of

many that moment came shortly after 9:00 a.m. crossing an abandoned Israeli checkpoint where mass Hamas militants now stand watch.

Israel agreed to open the road to Northern Gaza only after resolving a two- day dispute with Hamas over the fate of an Israeli hostage, Arbel Yehud. Hamas now set to release her alongside the captive Israeli soldier, Agam

Berger and a third hostage on Thursday.

Back in Gaza, this is what most are returning to. Bombed out buildings and heaps of rubble now line the streets. Even amid the destruction, there is

joy as family members separated by war reunite. Thank God, Mutad (ph) says as he kisses his mother and embraces his daughter. He hasn't seen them in

10 months.

Amid the reunions, there are also tears as people set foot on the land they call home once again. I'm crying right now out of happiness, this man says.

I don't want anything except to enter my homeland.

The enormity of the destruction in Gaza, prompting President Trump to call for moving Palestinians out of Gaza.

DONALD TRUMP (R) PRESIDENT OF THE UNITED STATES: I'd like Egypt to take people, and I'd like Jordan to take people. I can -- you're talking about

probably a million and a half people and we just clean out that whole thing.

DIAMOND (voice-over): Among those who camped out for days near the checkpoint to Northern Gaza, waiting for it to open, Trump's idea is

quickly rejected. We say to Trump, no and a million and one knows we will stay here. We will stay in Gaza, he says, even if it is a pile of rubble.

(END VIDEOTAPE)

NEWTON: And our thanks to Jeremy diamond there. The chairman of the world Holocaust Remembrance center accuses Elon Musk of insulting victims of

Nazism. Musk told members of the far right AFD party that Germany needs to "move beyond the guilt of the past." CNN's Frederik Pleitgen was there.

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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Elon Musk, larger than life, the virtual guest of honor at the far-right

alternative for Germany's election campaign kickoff of it. Some AFD members have been accused of using Nazi rhetoric. Musk calling for more German

nationalism.

ELON MUSK, CHIEF EXECUTIVE OFFICER, TESLA MOTORS: I think there's likely too much of a focus on past guilt, and we need to move beyond that. It's OK

to be proud to be German and not to lose that in some sort of multiculturalism that dilutes everything.

PLEITGEN (voice-over): Music to the ears of AFP supporters.

MUSK: You know, go, go, go.

PLEITGEN (voice-over): Musk speaking even before the party's main candidate, Alice Weidel, who makes no secret on immigration, the AFP sees

eye to eye with the Trump administration.

And Weidel telling me just how important a Musk's support is.

[16:40:03]

ALICE WEIDEL, AFD CANDIDATE FOR GERMAN CHANCELLOR: I'm incredibly happy that (INAUDIBLE) made it and I wish him and Donald Trump, J.D. Vance, all

the best of our blessings.

PLEITGEN (on camera): What would you do if you became the chancellor immediately?

WEIDEL: Closing our borders, controlling them and then sending out all the illegals and also these people who do crimes, they have to leave our

country.

PLEITGEN (voice-over): Germany has taken in millions of refugees in recent years, mostly from Syria, Iraq and Afghanistan. But after a string of high-

profile crimes like a recent stabbing by an Afghan asylum seeker killing a two-year-old boy and a man trying to stop the rampage, many Germans have

soured to the migrant influx. Musk inserting himself into German politics, calling German Chancellor Olaf Scholz an incompetent fool and saying only

the AfD can save Germany.

PLEITGEN (on camera): Well, Germany's established parties have said that they will not cooperate with the AfD. The party is currently riding a high

in the cold, and could soon be one of the strongest political forces in Germany.

PROTESTERS: Elon Musk (INAUDIBLE)

PLEITGEN (voice-over): Outside the venue, Musk also a lightning rod for those protesting against the AfD.

I understand what happened in 1933, this man says, where many people didn't want to see it, and I don't want my children to ask me, Dad, where were you

when the Nazis started again?

The AfD rejects accusations of being right-wing extremists, and the party leaders say, like it or not, the AfD is on the rise with Elon Musk fueling

their ascent.

Fred Pleitgen, CNN (INAUDIBLE) Germany.

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NEWTON: And that's QUEST MEANS BUSINESS. Up next. Richard Quest's World of Wonder.

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