this is "gps" the local public square. i'm fareed zakaria coming to you live from new york. on today's show, donald trump meets davos. the american first president was in snowy switzerland this week meeting the globalist. >> we will no longer surrenderer this country or its people to the false song of globalism. >> why did he go? >> i believe in america. >> what did he say?

>> america first does not mean america alone. >> what might he have learned? we'll discuss it all with a terrific panel. and an exclusive interview with benjamin netanyahu on president trump's recognition of jerusalem of israel's capcapita did that dash any remaining hopes of a two-state solution or did it strengthen those hopes? finally, move over davos men, davos woman is now running the show. the co-chairs of the world economic form were all women. >> even without testosterone we can produce positive constructive energy. >> but is there parody of the session? i'll give you facts and figures. >> first, here is my take, ever since donald trump was elected president, i've said when he did something right, i'd say so.

that's gotten me into trouble with some viewers but i'm going to do it again. on friday at the world economic forum, trump gave a good spooee that was forthright embracing the world rather than condemning. if the speech represents a new approach for the president, it will be a huge step forward but of course, the problem with trump is by tomorrow morning he might veer off in an entirely different direction. the trump presidency so far is composed of three parts, trump one is the circus. the tweets, the out land accompliclaims and trump three is the assaults on minorities, the press, the judiciary and other institutions. trump three is the conventional republican president following a standard gop agenda, hawkish foreign policy guided by mainstream advisors like comb and mattias. we could be entertained by the

circus. we should be appalled by the demagogue but we have to be encouraged by trump the republican. that's not because i agree with the ideas he's put forth in the agenda, i continue to think the tax cut is fiscally responsible blowing a huge hole in the deficit that will starve public investment and effectively transfer government funds from the poor to the rich. on the other hand, his push could be an important reform of an administrative state that has grown burden some and overly complex. trump's policies and his cheerleading rhetoric have without question boosted business confidence, which has larry summers often noted is the cheapest form of economic stimulus. but whatever you think of the policies, the larger point is that trump the conventional republican is working within the american system, rather than trying to destroy it. it's possible the weight of the presidency and challenges of the job pushed trump toward a more

sobering responsible path. it's also possible that trump simply decided for now, for one day, decide with his moderate advisors. he often seems to be an unstable compound of trump's one, two and three on a single day tweeting out juvenile absurdities and lashing out but also promoting some sensible policy. even at davos, he couldn't stop himself from attacking the news media and repeatedly making false or misleading claims. the mood this year among the global elite at davos was upbeat. the world is experiencing global growth, something very rare but underneath this good cheer there is this quiet. partly because people remember their optimism before the global recession hit but there is also an ease while global economics looks reasonably stable, global politics is in turmoil. the old world order created and led by the united states eroding

and the new great powers that are entering this stage are mostly narrow minded. what will the world look like when china, russia, turkey and india among others have much more weight in global affairs? in that context, the role, capacity and intentions of the united states and president become central. if the american president in these times seems uncommitted to the international system, hostile to the world, in different to democratic values and temper, that's especially dangerous today. so what trump behaves better as he did on friday, everyone breathes a sigh of relief. i don't seek to normalize donald trump but i do believe that given the stakes, america and the world are better off for these moments when he behaves more like a normal president. for more go to cnn.com/fareed

and read my washington post column this week and let's get started. you just heard my take, let's see what my panel thinks. in london, the editor in chief of "the economist" and the next war, the growing threat of conflict in today's world. ronna is a global business co columnist for the ft and with me here in new york is ian bremer, the president of the racial group. let me ask you, you were at davos, i saw you there. the mood was buoyant because of the growth. do the leaders deserve the credit for this global growth? are they right? >> well, collectively, they do

deserve some credit. i'm not sure donald trump deserves quite as much credit as he was taking but yes, the global economy is absolutely buoyant and going to grow and as a result, there isn't a short term, a lot of sense of u for . euphoria. people breathe the sigh of relief that donald trump there was trump on best behavior, trump with the tell promeprompt that reinforced the relief and euphoria you had. >> ronna, the best line i know about davos is i think jamie diamond, the ceo that says davos is where billionaires it will millionaires how the middle class feels. the billionaires and millionaires were very happy but will it translate. >> i can't think of a way to put it better. >> will it translate to the middle class? >> you know, i think -- no, i have to agree with jamie diamond on this. i think davos is a counter

indicator for how most of the population is feeling. it's true ceos were buoyant and i spoke to many. they are excited about the trump tax cuts. more than his speech, they were looking at what's been done so far. the tax cuts and deregulation in the u.s. my concern is really this is a short-term fix and band-aid. that tax cut didn't have a quit kwo p -- quid proquo it's happening in sectors not as labor intensive. the technology sector will do a lot but they don't employ a lot of people. a lot of it will go into share buy back. that won't do a lot for the lower 80. >> ian bremer, you tweeted there this is not just this speech but the last couple of speeches that

trump has given on foreign policy. he's actually stuck to the script in the telteleprompter. >> there is no question teleprompter trump is better than twitter trump. twitter trump is who he is. when he reads other people's words, you have a problem. if he could get out of his way, christine said not only is the economy doing better than any point in the last ten years but trump's tax bill is a piece of the reason for that. if he could sit back and let the economy do its work and let as many competent advisors work it would be fine. the big news this week is trump tried to fire mueller and he was being retrained. continually trump is his worst enemy. >> very quickly, do you think when you listen to all this what was going on at davos, do you think that they were giving trump credit? in other words, particularly european ceos you know very

well, they are not very -- they are hostile to trump, openly hostile. did they change their minds? >> they are openly hostile to many of the things trump does but delighted the fact their share prices are soaring and the american economy is booming and i was truck to the degree european ceos were happy to say the tax cut was great for them, too. i think ceos were quick to turn their tune and i thought there was a remarkably quick shift in opinion there. i agree that much of it is not justified and hopefully we can get on to that. the mood there was remarkably upbeat. >> fascinating. we're going to come back and talk about something else, which is other than trump and gio politics, there was a big story in davos worth hearing about. ronna will explain when we come back, as will all the others. heartburn. no one burns on my watch! try alka seltzer ultra strength heartburn relief chews. with more acid-fighting power

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and we are back with the economist in london and rome and ian here in new york. ronna, you look at the number of sessions and much of the talk at davos this year, it was about something else that people are actually very worried about. explain. >> absolutely. a.i., big data, the digital revolution was the hot topic and what is interesting to me, it's been that way many years at davos but this year you got the sense it was going way beyond the tech sector and going to every kind of business model. i spoke to an insurance executive that told me sensors in cars and homes would enable his industry to write personalized policies.

that's also going to result in some kind of a digital under class. we've seen workers being left behind by technology, we may see people that can't be insured or get health care policies. what is concerning is that the state will be left to pick up the pieces but the state as you've talked about in your column and talking about in my column tomorrow is it's very weak right now. politics are polarized. western liberal democratic states are being asked to do more. they can't. what is interesting is more authoritarian states may be better positioned in the short term to manage this disrupt but that also raises the authoritarian technology state that is wrecking privacy, polit >> my sense is the tech companies are usually the stars of the show are aware this new sense that technology is, first of all, causing a lot of job

losses and might be monopolies. is ushering in a wave of feelings about how to handle technology and big tech. >> i think that's absolutely right. there were lots of sessions on a.i. and how it will change jobs and lose jobs. that's been a subject for some years. for me the two new elements is there was a really sense of a tech lash, a backlash against tech companies, gookggles, facebooks are no longer the shining lights. they are too big, too concentrated and all kinds of people are worried and the number of people that said china is ahead of us in a.i. and we have a real problem. the sense of a.i. is something, part of the geopolitical rift between or struggle between china and the u.s. >> inn, so there is always that under current at davos, as well. is china gaining ground?

is the united states losing out in the key sectors? again, the surface, the american boom makes that seem not true but what's your sense? >> choinese growth is adding moe to the economy and that continues to be the case every year. also, chinese technology driven by the state as opposed to the united states. trump is talking about manufacturing jobs. he's talking about coal. he's not talking about investing in a.i. i think both of those really worry the davos group because the two dominant forces today are opposed to the multilateral developmental approach. you got libertarians in silicon valley and the state capital of beijing that unnerves the folks in a big way. >> ronna, do you sense as a result of all of this, you're going to have a chinese american

clash? >> i think you are. i think you're going to have a splinter net really. you already see china going in a different direction than not only the u.s. but europe in terms of how they are thinking about the internet and regulating the internet. very tight ties between the state and tech firms there and unlimited ability to collect data. i spoke to several western data scientists that were envious of how easy it is to collect data. in china, as they were worried about the authoritarian impact of the data collection. so it is a very disruptive time to say the least. >> and zanny, let me ask you, this is television and we have a minute. quickly tell me why you chose to highlight the danger of conflict and war "the economist" this week? >> two reasons. there is a growing risk of power conflict, an immediate risk

north korea and a terrific piece that shows the risk of a preventive tack in the united states is problem by much greater than people think and secondly, all the things, a rising china, taking its place in the world, plus technology changes in the nature of warfare makes the risk greater. >> when we come back, my exclusive interview with benjamin netanyahu. i'll ask him about the iran deal, the u.s. jerusalem and his own corruption scandal. ts, she can have just the right touch of real milk. easily digestible, it makes her favorite entrées even more delightful. fancy feast creamy delights. love is in the details. i'm trying to manage my a1c, and then i learn type 2 diabetes puts me at greater risk for heart attack or stroke.

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welcome back. fareed zakaria coming from davos. the ski town home to the world economic forum. it grabbed the biggest headlines thus far but out in full force. israel prime minister and benjamin netanyahu. it was almost two months ago

president trump announced he was recognizing ja re ing jerusalem to move the u.s. embassy from tel aviv. the u.n. general assembly overwhelmingly voted to condemn america's decision. but this week, administration doubled down. vice president pence speaking on monday set a date saying the new embassy will open the 4/20/19 is out. what does it mean for peace? is my interview with the prime minister. prime minister, pleasure to have you. >> pleasure to be with you. >> president trump announced that the united states will move its embassy from tel aviv to jerusalem and the arab leaders i talked to who are not unsympathetic say look, the reason we're opposed is this should be part of a final deal.

the status of jerusalem should not be decided unilateral unilaterally. we want this solved but helps produce a settlement. do you understand that point people pamake? >> i understand they say it but i think they are wrong. where is my office, the prime minister's office in jerusalem? where is that? right next to that is the supreme court, the real only independent supreme court in a radius in our region. where is that in jerusalem? the seed of government is in jerusalem. this has been the case. jerusalem is the capital of the jewish people since the time of king david. that's only 3,000 years ago. president trump made history but recognizing history. recognizing these indelible facts of the past and the present and under any peace

agreement, you know that the capital of israel will continue to jerusalem and the seed of our government will continue to be in jerusalem. i think on the contrary, he did a great service for peace because peace can only be based on truth, on reality and denying the simple fact israel's capital is jerusalem is -- pushes peace backward by creating an illusion, fantasy. you can't build peace on fantasy. >> a number of palestinians reacted to the trump administration's decision by saying it appears that benjamin netanyahu is essentially signaling the end of the two-state solution, we should now move to a one-state solution. what we now asked for since we will never have our own state with our own capital, what we ask for is political rights since we live under israeli sovereignty. is that a possible consequence

of this, the palestinians will move to ask for a one-state solution? >> i think it's a complete distortion. i don't think they mean it. they want to govern themselves, i don't have a problem with that. i'll tell you my position, it's simple. i would change it from the day i gave the speech. the principles have always been the same. the palestinians should have all the powers to govern themselves but none of the powers to threaten us, which means that in any political arrangement, israel must retain the over riding security control in the tiny area west of the jordan, from the jordan to the mediterranean because otherwise you'll have d.a.s.h., isis come in. that's the end of peace, the end of palestinian authorities and a powerful threat. i never mince words about that.

israel will retain the over riding security control but other than that, the palestinians will be free to govern themselves. i don't think there is a problem with that. people say yeah, if they don't have control over the military and security of things, that's not real sovereignty. you can't have another country retain the military forces, you know, a former enemy. how could that happen? well, how about american forces in germany? almost 80 years after the fact or in. >> japan. >> japan and so on. we live in a complex world. we have failed states in the middle east. we don't want another failed state and the key fundament of stability and success and peace is security. israel will maintain it for our benefit but for the benefit of the palestinians. >> you know there are a number of people that say the problem with no progress on this issue is that over time you will have

a vast number of palestinians who live under israeli sovereignty and in that circumstance, israel will not be able to be jewish and democratic, that they will lose democratic character because they will be ruling over a large group or jewish character because the number of palestinians will overwhelm the number of israeli jews. do you buy that trade off? >> i think there is a third option. i don't think -- i don't want to annex the palestinians as citizens of israel and i don't want to have them as our subjects. they can live in their own spear, govern themselves with their own flag and embassies, what have you. except the powers that are needed that we need to retain in order to protect ourselves. this is not a gimmick. it's not a spin. it's real. this is the kind of arrangement we have to --

>> but what countries has ever done that? you talk about germany and japan. germany and japan have control over their military. you're not -- if you were to give the palestinians the deal the germans got after world war ii, the palestinians would be happy. >> no, they say we don't want any residual forces and residual military presence beyond two, three years. that's now going on 80 years that the americans are there. >> germany has full sovereignty in military and defense. >> i think that when the palestinians demonstrate they can, you know, they can actually govern those territories and not have them taken over by ha mash >> is jared kushner going to make peace in the middle east? >> it's a very able team the president has. they have many, many abilities.

the thing that people don't realize is that these people have made their mark in the markets in real estate. this is not only a real estate deal but a problem of recognizing israel's existence and not recognizing a jewish state in any boundary but it also has its real estate elements. i have to say they are very creative, you know, and i wait to see what they will put down but i don't rule it out. because i think we need peace. i think the palestinians need peace. next on "gps" iran, president trump said he's waived sanctions against that nation for the last time unless european allies get tougher on iran. has obama's nuclear deal reached the beginning of its end? i asked prime minister netanyahu when we come back. of capital? what's critical thinking like?

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the president said something quite dramatic recently that he was not going to renew the waiver of sanctions on iran, which means that at some point it is quite possible that the united states will unilaterally withdraw from the iran deal. then iran would have the option presumably of beginning to enrich uranium again, go down a path, a nuclear path again. isn't that a bad outcome for israel? >> no. i think that the president deal is so deeply flawed that it guarantees that iran will have what it needs to make nuclear weapons for material on a vast scale. gives them time. >> wouldn't it be better? >> no, what they can do today is

at best enrich enraukraine and k it what's rushed to create a nuclear, an arsenal of nuclear weapons unimpeded by any international agreement. the agreement lets them do it. it gives iran the state of our time the where with all to produce nuclear weapons, nuclear bombs and proxy, terrorists and use it themselves. that's where we don't want to get to. i don't particularly care if they fix the deal, cancel the deal. the important part for me is to keep iran from getting the deal. iran not only spreads terror worldwide but says it's going to use the weapons and use every weapon they have to annihilate

israel. we're not going to let that happen. >> whether you talk to european leaders, when i talk to european leaders and publish statements, they say they support the deal. they do not see any reason to amend it. they believe iran is in compliance and produces stability. when you talk to them and say fix the deal, do they tell you yes, we're going to fix the deal or do they say what they are saying publicly, the deal is good, there is nothing -- no fixing needs to be done? >> well, i'll tell you what i tell them. you know. >> what i'm hoping is you'll tell me what they tell you privately. >> i'm sure you do. i can say that the fact they signed a bad deal doesn't mean they have to keep a bad deal. in history, we've had instances of nations signing very bad deals and living, if they manage to live, to regret it. there was such a deal, by the

way, most recently with north korea. they had a deal. everybody said that's it, you know, the north koreans will keep the deal and will prevent north korea from having nuclear weapons. they will join the community of nations. so much for that. they signed a deal. >> wouldn't we wish for a deal given that their inspectors in iran, given it's much more difficult, are you comfortable with an iran where there is no deal and it can do whatever it wants. >> i don't think it can do everything. the inspections are deeply flawed because iran says you cannot inspect military sites. so if you're the iranian regime, wh where do you think you'll do weaponizati weaponization. you can't inspect it. this is one example of how flawed this deal is. secondly, look, iran doesn't rush forward to make nuclear

weapons because they can suffer crippling sanctions. that brought them to their senses last time, a number of times. second, they might think correctly that if they try to rush for a bomb, they will be countries that would prevent them. i don't want to speak in the name of another country but i guarantee you i speak in my name, we will not let them asquareakwa acquire a nuclear weapon. >> when we look at the middle east, it seems as though -- >> the arab states unnamed agree with you. >> we are just about to name them. it seems -- >> you want to name the unnamed states? go ahead. >> it seems as though israel is today in a closest strategy alliance than at any point in its history and this is an anti

iran alliance egypt and saudi arabia are the crucial players. do you agree? >> i agree there is an alignment of israel and other countries in the middle east that would have been an unimaginable ten years ago and certainly in my lifetime. i never saw anything like it, and i'm at the stage of israel nonetheless. it's extraordinary. it starts with a common concern with a common enemy, which is radical islam of the radical sunnis, d.a.s.h. and prevented major terror attacks not only through the middle east but throughout the world and saved the lives of many citizens because intel was second to none

and common stance against iran. that's one source. what is not recognized there is another source of this closeness and it's their desire to make use of the civilian technology that israel has in water or agriculture or i.t. and other areas to better the lives of health, to better the lives of their citizens. i view that as a great promise for peace. i think it's changing attitudes not only on the level of the regime. we pull the arab world and see the beginning of changes, significant change in the attitude towards israel and the arab public, not all of them and not yet majority but significant minority. that's hope, that's the future of peace. up next, our last prime minister netanyahu about himself, specifically the criminal probes that are swirling around him and his associat associates. he's already been questioned numerous times by israeli

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and topped it with tender chunks of buffalo-style chicken. now that's mega. there will be nothing because there is nothing. that's a quote not from donald trump but by the russia investigation but benjamin netanyahu. it's a mantra source for him when he's asked to comment on the investigations swirling around him. the israeli police named netanyahu a suspect in two cases breach of trust. he's been interviewed multiple times but authorities and his former chief of staff agrees. here again, benjamin netten y n here again, benjamin netten eta >> mr. prime minister, i wouldn't do my job if i didn't

ask this question. how should the world see this? should the world look at this and say this is israeli democracy at work when nobody is above the law, above scrutiny, above investigation or do you regard this as a political witch hunt? >> nobody is above the law in israel and that's the case in this case, too, but i'm also confident nothing will come of it because there is nothing to come out. so i think that it's just a question of time and next year, yeah. next year, we'll do it once a year and you'll see if i'm proven right. >> finally, you just came back from a trip to india. >> yeah. >> tell us what is it that all these countries that you have been going that i'm deepening trying to get from israel. >> two things, israel and

intelligence. for example, keeping planes from blowing up in the sky. that's not a problem for who suffers that but civil aviation. israel has been the leading force to protect the lives and the credit of many, many states. that's the first thing everybody wants. the sparks of radical islam are flying into every continent and country. the second thing they want is the future. that's not only to push back the bad it's to seize the good. we're in a world of tremendous change. artificial intelligence and connectivity changing industries. israel has a car industry within a matter of years. we make 85% of the value of a

car will be software, the body, the chassis is minimal. po most cars are technology on wheels. my office has been sold to intel for 15 billion for vehicle technology. israel is not only an i.t. power, it's a waterpower. we recycle almost 90% of our waste water. the runner up is spain with 20%, just to understand. if you're a country that needs water and you can recycle your waste water, you come to israel. this is a revolution. israel, we're working to build up the life of the jewish estate and afford the future of prosperity and progress and peace. >> next week on "gps" don't miss my interview with king abdullah

ii. mark your calendars. next up, many years ago the political scientists coined the term davos man to describe the aven average attendee but is davos man making way for davos woman? this year the seven co-chairs of the meeting were all women. was it just window dressing? when we come back. it's absolute confidence in 30,000 precision parts.

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christopher hayes twie liglight the elites. i brought it with me to the world economic forum. it's a highly intelligent and profound reflection with the current system that is so divided almost all our societies. and now, the last look from here in davos where there is some history being made. >> it's fascinating -- >> all seven of the gathering co-chairs are women. top leaders in business, finance, science and social entrepreneurship. >> you have to talk about prosperi prosperity. >> all seven gathered on stage on an opening session and one is managing director that something was out of the ordinary. >> the change from the panels that would be part on occasion. >> progress in gender doesn't fully trickle down to the ranks of attendees.

the forum admits 21% of the 3,000 pariticipants are women. that's an improvement, attendees voice the frustration. the web zone getter gap report is a publication that charts the progress of more than 100 countries toward gender equality. the most recent report notes the gender gap widened since they started measuring more than a decade ago and based on current data, it will be 100 years before most countries have closed their overall gender gaps and 217 years to close the economic gap including work force precipitation and salary. where did the united states fall on the 2017 gender gap? it's in 49th place, the worst ranking in the history of the survey. number one is iceland which

vently pavent recently forced companies to prove any wage difference between employees is not due to getter and on the political empowerment subindex that measures the gap between men and women at the highest levels, the u.s. was in the lower half of the pack at 96 between pakistan and vietnam. don't forget we launched the "gps" challenge online. see how well you do at cnn/fareed quiz and try your hand. thanks for being part of this program. i'll see you next week. hey, i'm brian stelter and this is "reliable sources." our weekly look at the story behind the story. how the news gets made.

with trump's ingrammigration, w is in the coverage. amy goodman with an answer and president trump swiping at jay-z after this interview with van jones. >> the protrump media is escalating the war on robert muell mueller. one weapon is confusion. the challenge for you and me is to refuse to be confused. let's lay it all out here. almost every day there is at least one revelation how many people robert mueller interviewed and how much the special counsel investigation learned about the inner workings of trump world. mueller knows the repeatedly tried to pressure individuals. leak by leak, the ones there on screen, it becomes clear trump is in more and more of a proc precarious situation. with