this is "gps" the local public square. well come to all of you around the united states and the world, 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 globalists he loves to deride. >> 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 as israel's capital, 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 sexes? 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 speech that was forthright, intelligent and conciliatory, 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 outlandish claims, the reality-like tv show. trump two is the assaults on the 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 advisers like gary kohn and jim mattis. 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 irresponsible 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 burdensome and overly complex. trump's policies and his cheerleading rhetoric have without question boosted business confidence, which as 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 sober and responsible path. it's also possible that trump simply decided for now, for one day, to side 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 at democratic institutions but then 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 synchronous 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 in rome, cnn's global economic analyst. with me here in new york is ian bremer, the president of the rash yeah group. let me ask you, you were at davos, i saw you there. the mood was buoyant because of

the sense of growth. do the leaders deserve credit for this synchronous 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 euphoria. underneath that i think there are deep concerns. you highlighted some of them. people breathed the sigh of relief that donald trump there was trump on best behavior, trump with the teleprompter and that reinforced the relief and euphoria you had. >> ronna, the best line i know about davos is i think jamie diamond, the ceo of jpmorgan 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 to the middle

class? >> i think not. i have to agree with jamie diamond on this. davos is a counterindicator for how most of the population is feeling. it's true that ceos are buoyant. they are excited about the trump tax cuts. more than his speech, they were looking attacks cuts, certain 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 quid pro quo. 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 will bolster the top 20% but 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 been remarkably sensible, which is to say he's stuck to the script in the teleprompter. >> there is no question teleprompter trump is better and more acceptable 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 lagarde opened davos and said not only is it better than 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 restrained. continually trump is his worst enemy.

>> zanny, 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 struck 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 geopolitics, there was a big story in davos worth hearing about.

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i use herpecin l.re, it penetrates deep to treat. it soothes, moisturizes, and creates an spf 30 barrier, to protect against flare-ups caused by the sun. herpecin l. and we are back with the economist's in london and rome and ian here in new york. rana, 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 underclass. 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 disruption but that also raises the authoritarian technology state that is wrecking privacy, lots of big political issues. >> zanny, 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, goggles, 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. >> ian, so there is always that undercurrent 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? >> chinese growth is adding more to the global 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. that's a sector the chinese want to dominate. i think both of those really worry the davos group because the two dominant forces today are ideologically opposed to the multilateral, developmental approach at davos. you got libertarians in silicon valley and the state capital of beijing that unnerves the folks in a big way.

>> rana, 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 us 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 by 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 much greater than people realize. >> it's a terrific cover story. you should all read it. when we come back, my exclusive interview with benjamin netanyahu. i'll ask him about the iran deal, the u.s. embassy move to jerusalem and his own corruption scandal. ♪ (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives,

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welcome back to gps. i'm fareed zakaria coming to you from davos, the small ski townhome to the world economic forum. donald trump's fellow world leaders were out in full force. on thursday i interviewed

israel's prime minister benjamin netanyahu on stage at the forum. it was almost two months ago president trump announced he was recognizing jerusalem and hoped to move the u.s. embassy from tel aviv. sharltly thereafter 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 before 2019 is out. what does it mean for peace? here 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 to israel say look, the reason we're opposed is this should be part of a final deal. the status of jerusalem should not be decided arbitrarily and unilaterally. we want this solved but in a way that helps produce a settlement. do you understand that point people make? >> 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 for the 70 years of israel's existence that we're celebrating now. jerusalem has been 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 seat 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. it has to be grounded in reality. >> 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 asking 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 daesh isis come in. that's the end of peace, the end of palestinian authorities and a

powerful threat to the survival of israel. i never mince words about that. israel will retain the overriding 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 either 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 tradeoff? >> 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 powers, their own parliament, their own flag and embassy, 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 hamas or isis, then come ask me again. >> is jared kushner going to make peace in the middle east?

president trump says he has a chance of doing that. >> 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. it's fundamentally not a real estate deal but a problem recognizing israel's existence, the problem of not recognizing a jewish state in any boundary, but it also has its real estate elements. and they're, i have to say, very creative. i wait to see what they'll 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'll ask prime minister netanyahu when we come back. you don't want to live with mom and dad forever, do you? i'm making smoothies! how do i check my credit score? credit karma. don't worry, it's free. credit karma. give yourself some credit.

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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 including enrichment office siel material on a vast scale. >> wouldn't it be better to be 15 years from now than next month? >> no, what they can do today is at best enrich ukraine and break it what's rushed to create a nuclear, an arsenal of nuclear weapons unimpeded by any international agreement. the agreement lets them do it.

this is why the deal is so bad, because it gives iran the state of our time the wherewithal to produce nuclear weapons, nuclear bombs. they could give it to proxies, terrorists, they could 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, keep it or nix it. the important part for me is to keep iran from getting the arsenal. 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. >> when you talk to european leaders -- at least when i've talked to european leaders and in public statements they say they support the deal, do not see any reason to amend it. they believe iran is in comp compliance with the deal and they think it 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 it 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. first of all, the inspections are deeply flawed because iran says you cannot inspect military sites. so if you're the iranian regime, where do you think you'll do weaponization? in military sites. 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 acquire a nuclear weapon.

>> when you look at the middle east -- you and i have talked about this before -- >> by the way, the arab states, unnamed, agree with me. >> so we're just about to name them. >> you want to name the unnamed states? go ahead. >> it seems as though israel is today in a closest strategic alliance with saudi arabia and egypt at any point in its history and this is an anti iran alliance, egypt and saudi arabia are the crucial players. would 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, daesh, before that al qaeda and has prevented, by the way, dozens of major terrorist attacks not only in the middle east but throughout the world and saved the lives of many, many citizens because our intel was second to none, and also our 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 minorities. that's hope, that's the future of peace. up next, i'll ask prime minister netanyahu about himself, the criminal probes swirling around he an his associates. he's already been questioned numerous times by israeli authorities. what happens next? there's a vacation at the end of every week with hilton. whatever type of weekender you are, don't let another weekend pass you by.

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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 of sorts 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 netanyahu. >> mr. prime minister, i wouldn't do my job if i didn't ask this question. it's about your own political future. you face in israel serious investigations. 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. you'll see that i am. >> 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 to, deepening their ties with israel, what are they trying to get from israel? >> two things. protection. 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 critical facilities of many, many states. that's the first thing everybody

wants that. 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. you have been talking about it. basically the conference of big data, 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, the tires, the engine is minimal. essentially computers on wheels. now we have a cars industry so there we compete. an israeli company has been sold. this technology produced in israel. israel is not only an i.t. power, it's a waterpower.

not only that. 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. here in davos. mark your calendars. next up, many years ago the political scientists coined the term davos man to describe the 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.

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you can easily add premium channels, so you don't miss your favorite show. and with just a single word, find all the answers you're looking for - because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today. my book of the week is christopher hayes "wilight of 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 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 participants are women. that's an improvement, attendees voice the frustration. and the lopsided gender balance in these halls. the web zone gender 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 participation and salary between men and women. 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 recently passed legislation forcing companies to prove that any wage difference between employees is not due to gender and on the survey's political empowerment subindex that measures the gap between men and women at the highest levels of decision-making the u.s. was in the lower half of the back coming in at 96 between pakistan and vietnam.

don't forget we launched the "gps" challenge online. every sun we post on our website ten questions that will challenge your knowledge of the world. 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. hello, everyone, thank you for joining me this sunday. i'm fredricka whitfield. president trump is in washington preparing for a major milestone in his presidency, delivering his first state of the union address that happens in two days and immigration is expected to be at the forefront as the president sells his controversial plan. let's get straight to cnn's boris sanchez live for us at the white house. boris, what is likely the theme of the speech? >> reporter: hey there. the them of president trump's speech is building a safe