welcome to all of you in the united states and around the world. i'm fareed zakaria. we'll start with the ever swirling controversies concerning the trump white house and its ties to russia. today, we have the other side of the story. long time putin spokesman tells me what russia did and did not do and how putin and the russian people view the american accusations. >> we did not have and do not have any intention to interfere

in someone's domestic affairs especially in america's domestic affairs. then the head of president trump's economic advisory council. blackstone ceo stephen schwartsman. first, here's my take. this week we've watched the perfect illustration of a country fighting the last war. the trump administration has now devoted weeks of time, energy and political capital to rolling out its temporary travel ban of citizens against six muslim majority countries which have collectively not committed a single deadly terrorist attack in the united states over the last four decades. meanwhile, the white house is response to a devastating barrage of wikileaks disclosures that will compromise national security for years was a leaker.

the wikileaks revelations are designed to cripple american intelligence operations from isis or al qaeda. wikileaks claims to be devoted to exposing and undermining centralized power everywhere yet it's never revealed anything about the intelligence of the russian or chinese governments both highly centralized dictatorships with central and advised cyber intelligence units. in 2015, u.s. cyber war chief mike rogers warned that we are at a tipping point testifying that the country had no adequate deterrent against cyber attacks. the digital realm is a complex one and old rules won't easily

complex. the analogy that many makers to nuclear weapons. they say the new category of weap weaponary led to the doctrine of det deterrance. this won't work in the cyber realm. first, the goal of nuclear deterrance has been total prevent. the pentagon reports getting 10 million attacks a day. second, there's the problem of a attribution. william llin lynn said in 2010, missile comes with a return address, a computer virus does not. that's why it's easy for the russian government to deny any involvement with the hacking of

the democratic commission. nye argues there's several ways to deal with it, punishment, defense and taboos. punishment involves retaliation. both sides could play the game and it would easily spiral out of control. the other strategies that merit more consideration are one that the united states should develop a serious set of defenses beyond governmental networks that are on public health. regulations and information would encourage the private sector to follow simple rules of cyber hygiene. the final strategy nye suggests is develop taboos against certain forms of cyber warfare. he points out after the use of chemical weapons in world war i, it was enacted into international law and largely held for a century. similarly in the 1950s, many

strategists saw no distension between tactical nuclear weapons and normal weapons and advocated using them. gradually countries came to shunning any use of nuclear weapons. nye recognizes that no one will stop using cyber tools but believes that certain targets could be deemed off limits such as purely civilian equipment. of course, the development of such norms would require multilateral negotiations. at least the administration is working hard to prevent those yemeni tourists from skbenterin the united states. for more go to cnn.com/fareed and read my washington post column this week, and let's get

started. on monday night at 9:00 p.m. eastern and pacific my latest documentary will air right here on cnn. it's called "the most powerful man in the world." we examine the rise and reign of russia's vladmir putin. what can we learn about this man who inspire such passion and who has so much power? tune in to find out. that's 9:00 p.m. eastern and pacific on cnn. for the documentary and for gps earlier this week i had the rare opportunity to interview one of the men who knowed vladmir putin best. dmitry peskov has been at the president's side for almost two decades. it's an almost unique opportunity to hear a senior russian official on the kremlin

side. i spoke to pescov from new york. he was in moscow. i know where to begin about the allegations about donald trump and his campaign and the russian government. let me ask you very directly, did the russian government have any collaboration or serious communication back and forth with donald trump's campaign during the election campaign last year? >> the answer is very simple. no. the fact that russia is being demonized in that sense comes very strange to us. we are really sorry about that. the whole situation takes us away from the perspective of getting our relationship to a better condition. we quite unexpectedly we were

faced a situation when russia, all of a sudden became a nightmare for the united states. we cannot sincerely not understand why american people and american politicians started the process of self-humiliation. you're self-humiliating yourself saying a country can intervene in your election process. america, huge country. the most powerful country in the world with a very, very stable political traditions and you say that a country can easily intervene and easily influence your electoral process. this is simply impossible. when it comes to russia i can tell you that we never had, we do not have and we will not have

any intention to interfere in someone's domestic affairs especially in america's domestic affairs. we will never let anyone to put his nose in our domestic affairs. >> so what was it that the russian ambassador was talking to so many of donald trump's associates about? >> this is his job. he was talking about bilateral relations. he was talking about what is going on in the united states so we have a better understanding in moscow. this is what is being performed by every ambassador of russia abroad. every ambassador of the united states abroad, including in moscow. the more ambassador talks to people in his country of residence, the better job he

does. >> did he have similar meetings with clinton campaign officials because i don't know of any? >> well, if you look at some people connected with hillary clinton during her campaign, you would probably see that he had lots of meetings of that kind. there were no meetings about electoral process. no way it should be percepted as interference. if you look at it with intention, you would probably say he was trying to interfere in hillary's activities. it would be nonsense because it's not true.

>> isn't it fair to say that mr. putin did not warm to hillary clinton and he accused her of meddling in russia's internal affairs during the 2011-2012 campaign for his own presidency. it does seem as though he might have had a preference for mr. trump because in his view hillary clinton tried to interfere in russian politics. >> you would probably recall that president putin during election campaign never answered direct question about his candidate of his support. he kept saying that we will respect the choice of american people and only american people can and should choose their own president. these were the words of president putin that he had

repeated numerous times during this clast couple of years. of course, if you ask him whether he mentioned the then candidate donald trump, i will answer yes, he had. why? the candidate hillary clinton was quite negative about our country and attitude. declaring russia the main threat for the united states. to the contrary, the other candidate, donald trump was saying that yes, we disagree with the russians in lots of issues but we have to talk to them in order to try to find some understanding. whom do you like better? the one that says that russia is evil or the one who says we disagree but let's talk to understand and to try to fiepd

so -- find some points of agreement. of course, public opinion will likely be the other one. it's quite natural. it's quite natural. it doesn't mean in no way that russia has interfered in the electoral process. >> what do you make of the fact that every intelligence agency in the united states, all 16 say they have high confidence that russia tried to alter the outcome of the elections in the united states? >> we don't know what's the reason for these words. we have never seen any evidence. we've never heard something trustful. what we have seen and open in public part of a report by one of the agencies of the united states and i would humbly say

that it's not a paper of a high quality in terms of being really trustful. >> next on gps, from the election of trump to his presidency. what does president putin make of president trump? when will the two meet face-to-face? dmitry will tell us all when we come back. i've tried enough laxatives to cover the eastern seaboard. i've climbed a mount everest of fiber. probiotics? enough! (avo) if you've had enough, tell your doctor what you've tried and how long you've been at it. linzess works differently from laxatives. linzess treats adults with ibs with constipation or chronic constipation. it can help relieve your belly pain, and lets you have more frequent and complete bowel movements that are easier to pass. do not give linzess to children under six, and it should not be given to children six to less than eighteen. it may harm them.

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we are back with our exclusive with dmitry peskov. what do you and what do mr. putin make of the first few weeks of the trump administration? >> unfortunately, we do have a proper understanding of perspectives. we would expect our contacts to

be more frequent, more in-depth in order to sit and talk to each other to try to understand. we had quite a significant pause in our bilateral relations. for countries like russia and the united states, it's unpardonable not to be in dialogue especially against this amount of regional and global problems that we have. instead of trying to unite our efforts in solving those problems, we are losing potential by blaming everything on earth on each other. >> when president putin spoke with president trump, what was h his reaction? what did he think of president trump? >> it was quite promising. he's very pragmatic, i mean

president trump. he's not hide iing the fact thae disagrees in lots of things with russia. he's pragmatic enough to say that we have to talk. we have to be in a dialogue. we have to compare our positions in order to find some common ground and having some dead ends in our relationship, he said we can not agree upon that we'll never be able to agree upon with you, with the russians but at the same time he says we have to come together and start our dialogue. unfortunately, we don't have a better understanding on when these dialogue can begin, can start? >> does the russian government

hope that president trump will be willing to consider relaxing or overturning the western sanctions against russia that will put in place in the wake of the ukranian crisis? president trump has said something that he will weaken the sanctions. >> it was never on the agenda until now. russia will never initiate putting it on the agenda. those are the words of the president putin. he said we're not going to touch this issue. as soon as you're ready and willing because you initiated those sanctions then you will put it on agenda by yourselves but we're not going to be the first. >> do you now worry in the climate that exists now in the united states in washington, 65% of americans want a special prosecutor to look into the

issue of russia's connections with the trump campaign, in that environment do you worry it will be very difficult for the trump administration to have a cooperative relationship with russia? >> yes, we do worry. we do worry. public opinion, if you load the public opinion with a huge burden of fake news of this fake blaming on russia. if you repeat every day numerous times that russia is guilty of everything. russia is interfering. russia is trying to hack everything in our country and everything that depogoes wrong our country is because russia. if you repeat it and repeat it then you will have more than 65%. we consider it a raeal danger fr the future of our bilateral

relationship. we sincerely want to see this hysteria coming to its logic hand better sooner than later. >> what do you think it's going to look like when putin and trump meet for the first time? >> they will talk to each other. they will talk to each other. trs pornts they just sit -- it' they just sit in front of each other and start talking. we can't expect that they meet each other on g-20 summit in hamburg in the beginning of july. this is the first place when they will come across each other. next on gps, what kind of a person is vladmir putin? what is he like to work for? what motivates him? dmitry peskov will tell us.

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dmitry peskov, one of his closest advisors talked to me about the man he has known for two decades. americans are very curious about vladmir putin. how would you describe him? >> if you ask me what is mr. putin, well he's a president of the russian federation. he came to power in a country that was about to collapse to lose its territorial and political integrity. there was a country with a huge foreign debt. a country that couldn't afford paying off that foreign debt and it was a very intense negotiations with dead holders. a man who managed in a decade using his management skills, using his personal talents, using positive international and

economic environment to make russia stable again. to make russia being a country with increasing level of standards of living. were more prosperous, more unite unit united, developing quite fast and playing more and more serious role in global affairs. this is mr. putin. >> is that why he's so popular? to what do you attribute the popularity he has in russia? >> he's different from lots of statesmen and politicians that we see in the world and we see in russia. first of all, he's not a populist. he does what he says and he never says more than what he will be able to do in the future. that's why people trust him.

plus, if you imagine a politici politician, every and each of them would promise a lot. would promise a lot for coming generations. will promise that generations after coming generations will feel better in their life and would feel better standards of living. what he did, he made the life better. that's why his level of support is really unique. it's more than 80 or 85%. it's unimaginable in global politics. >> pleasure to have you on, sir. >> thank you very much. don't forget, monday night

at 9:00 p.m. eastern and pacific right here on cnn, you can catch the premiere of the most powerful man in the world. my new documentary is on the rise and reign of vladmir putin. don't miss it. next, the billionaire businessmen who has president's ear on economic matters. the founder of blackstone stephen schwarzman, the head of the president's strategic and policy foreign, when we come back.

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if you want help improving your a1c and blood sugar numbers with a non-insulin option, click to activate your within. ask your doctor about once-weekly trulicity. thank you everybody for being here this morning. this is a really world class group. i want to thank and congratulate steve. you have done an amazing job. >> that was president trump at the top of the first meeting of his strategy and policy forum. it's a very impressive collection of american business

leaders who will come together to give the businessman turned president on advice to bring back job, grow the economy and make america great again. the steve that trump said was doing an amazing job is my next guest. stephen schwarzman is the chair of that council and his day job is the chair of blackstone, the world's largest private equity firm which he co-founded. welcome. >> good to see you. >> why did trump pick you for this job? have you known trump for years? have you worked with him ever? >> i've known him a long time. i've had a pretty direct, candid relationship with him. he called me after he was elected and asked if i wanted to do something officially in the government. i said no. i'm very happy with my day job. i thought that's what you would tell me. i'd appreciate it if you would

give me advice on a longer term basis and if you could form a group of really remarkable people who could get together every month or two with me. tell me what's going on in the world. give me advice on things and be straight shooters. that would be an enormous contribution. you pick them. check them with me. i'll tell you if i like them. ask them and let's get to work. that's where it came from. >> you said be a straight shooter. the question i would have for you which a lot of people wonder is, have you been able to pick up the phone, talk to president trump and tell him things that you disagreed with and what was his reaction whn yction when yo? >> he's better face-to-face. i'm not going to tell you what i said. >> have you told him things -- have you told him, you're doing this, i disagree. you don't have to tell me the

specifics. is he a guy that can take criticism? >> he's something that likes to know what you think is the right thing to do. he was a real estate person. that was his basic job. there are a lot of things outside of that sphere, which are new and different and to the extent that someone else he trusts has a view on things that are unfamiliar to him, he's very open to learn. if he has some instincts that are countered by reality, he will let his previous perceptions of things go and move to what he sees or what somebody tells him. i find him pretty easy to deal with. >> when you look at the markets, it seems that broadly speaking being a big bull run since the president was elected, they look at a lot of things that he's said as have pro-business. corporate tax cuts, the big

infrastructure push. he's also said other things such as trade wars, tariffs on china, tariffs on mexico, labeling china a currency manipulatomani. do you think the markets are guessing all the good stuff, from their point of view, will happen and all the bad stuff won't? >> no one knows for sure. the good stuff is really good. it's important those types of things be achieved not for the benefit of just the business community but for the benefit of people in the united states who haven't had a great run. about 60% of them since the year 2000 have not had an increase in their disposable income. they are frustrated and they should be. in terms of things with a negative spin, i think he looks at life and say we should have more or less equivalency in

trade. if we're out competed, that's fine. no problem with that. barriers that stop our companies from bringing in their goods or doing it at the same price from tariff perspective or other nonhno non-tariff barriers, that's not fair. we ought to be equal. that's where it comes from. >> you expect you will see a very significant change in the real gdp that has note grown much than 1% over the last 18 years? >> absolutely. >> what do you predict? >> it should end up in the threes which will be a doubling of what we've done. there's enormousinhabition to

growth. that doesn't mean you get rid of all things. there's a lot of good stuff that's not really helpful. that's retarded lending in certain sectors and infrastructure is another one. for example, you remember in the stimulus program it was $175 billion allocated to build infrastructure. well, hardly anything ever got built. it was because the laws basically almost contradict each other wi other. policies that exist contradict each other and so do regulations. for example, to do big projects in the united states can take 10 to 15 years to get approved. in germany, to do big projects, it's two years. in canada, it's two years. our system just because of the

way things get enacted over time has made it so difficult and in the stimulus plan nobody knows what was built. the numbers i've been told is roughly 30 billion got built but there was $175 billion available. we have to change that. >> stay with me, steve. up next i'm going to ask stephen about another country he knows better than most. china. i'll ask if there's a danger that united states and dmchina e in trade war or worse, when we come back. why put up with just part of a day? aleve, live whole not part. tell you what, i'll give it to you for half off.

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we're back with stephen schwarzman. the ceo of blackstone. now one of the top advisors to donald trump. let me ask you, what does happen if you end up with some

protectionist measures? what happens if you start deporting many of the undocumented workers who work in construction and agriculture? won't that have a depressing effect in a very similar way? >> let's talk about the trade stuff first. i think with trade, everybody in the world now is on notice in an odd delivery system, but nonetheless on notice that the u.s. wants equivalence and i think the president would call that fair trade. there are countries that have shown up and said i want to negotiate a different deal with you. there's a list of countries who are having discussions with us. there will be changing as a result of that. if those are handled well it

will be successful. everyone involved and can china is the biggest one. it's a trade deficit around 360, 370 billion soon to be 400 billion, that doesn't mean much to anybody who is probably watching but it's half of the total u.s. trade deficit. >> do you have a particularly relationship with china that's very deep. you founded schwarzman college which is a program for people to go to china. here is a president who said he will label china currency manipulator. he promised he would do it the first week. i guess that didn't happen. he was going to slap a 45% tariff on china. when you talk to the chinese, aren't they worried this will lead to a trade war? >> i think they have a certain

knowledge that these are early days. there's a learning curve. after three years of doing my job, i know much, much more than i did my first day and he said that's the nature of being president of any country. he said if you've never had that job, you have no idea what being the head of state is in a major country. the chinese are waiting to see what the u.s. positions are. as they said they are very patient and they'll be there. they said they worked with many u.s. presidents and u.s. presidents have worked with many presidents of china. they want a long term relationship with the united

states and we'll see how things go with the discussions. it's very measured and not quite as hyperbolic as things are on our side. i don't think that there's going to be issues regarding china's currency manipulator and some of the other things. >> you think some of that will be dialed back? >> i think so. >> do you think when you look at something like immigration, for example, will it similarlily be a dialing back. if you're going to start deporting the numbers that trump talked about during the campaign, it will have a big impact on construction, on agriculture where they use a lot of immigrant labor. >> that's not just over my pay grade but outside of my pay grade. >> i didn't know there was anything over your pay grade. >> i'm declaring this one. >> you see already a big shift in terms of the way this

administration is viewed by the business community and you think that will translate directly into economic growth? >> the question is how long will that take? how many thing s have to be enacted for that to happen but i have no doubt, actually, which is unusual for me because i'm usually pretty nuanced as to whether that will result in significantly higher growth. >> you're investing on the assumption of greater growth? >> i guess 12, 13% in the last few months isn't so bad. in the stock market we're at a record. consumer confidence in america is at a record since the year 2000. these aren't about republicans having confidence. it's not about democrats having confidence. it's about the country having confidence and the world. the u.s. stock market is a global market.

all of these confidence ultimately result in change behavior. >> pleasure to have you on. next on gps, donald trump's aproouf approval rating in the united states is rather low. there's two foreign country where is he has majority support. where? find out when we come back. or is it your allergy pills? holding you back break through your allergies. introducing flonase sensimist.

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america, it turns out is the 7th best country in the world according to a u.s. news and report out this week.

the report ranks countries using categories like perception of quality of life and religious freedom. the u.s. slid from fourth place in part because of the glow ball view of the election. this brings me to my question of the week. of the countries surveyed, only two demonstrated majority support for donald trump? t the first was russia and what other nation. stay tuned and we'll tell you the correct answer. now the book of the week. president trump's national security advisor h.r. mcmaster recommended a set of classics on international affairs. they are excellent but i thought i would recommend one in particular. michael howard's war in european history. a set of essays by the greatest living military mistor yhistori are sweeping, highly intelligent. a quick, wonderful read. thousands of soldiers in perfect formation.

streams of military vehicles. helicopters tlflying overhead. it was a massive anti-terror rally held by more than 10,000 armed police in a contentious western chinese region last week. this staggering show of force was not the only one like it this year. these rallies are a response to what the chinese government calls terror but observers say is ethnic violence between the country's chinese majority and the native minority. they have been a few acts of terror in recent years. on the same day of the ral lly isis problpaganda video was sho.

one politician said china should quote bury the corpses of terrorists in the vast sea of the people's war. the chinese communityist party knows a thing or two about guerilla warfare. the correct answer is china. according the survey, 54% of chinese surveyed view donald trump favorably while the number was 83% among russians. when asked which american candidate they would have voted for, 59% said hillary clinton while 27% would have voted for president trump. if you had signed up for or new newsletter you may have known the answer to this already. go tocnn.com/fareed.

it will take you a minute to sign up. don't forget do catch the most powerful man in the world monday at 9:00 p.m. here on cnn. thanks for being part of my program this week. i'll see you next week. it's time for "reliable sources." this is our weekly look at the story behind the story. how the media really works. how the news gets made. in this hour, where in the world is the secretary of state. dozens of outlets concerned about the new secretary of state inaccessibility. my panel set to weigh in. with the u.s. attorney pre-bharara hearing the trademark phrase, you're fired. what does this mean for an ongoing probe of fox news. trump said he got his military advice from watching the news. now as president cable news has inspired many of his tweets. is t