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CNN 10 - January 25, 2018

CNN 10

The Issue of Globalization Takes Center Stage in Davos; Toys "R" Us Announces Store Closings; NASA Tests New Aircraft Technology

Aired January 25, 2018 - 04:00 ET

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


CARL AZUZ, CNN 10 ANCHOR: Welcome one and all to CNN 10, your daily explanation of world news. I`m Carl Azuz at the CNN Center.

Based around the idea of a improving the state of the world, the World Economic Forum is holding its annual meeting right now in Davos, Switzerland. Leaders of governments, companies and societies from around the world are gathered at the mountain resort. And the forum`s 48th yearly meeting is dedicated to creating what it calls a shared narrative to improve the state of the world.

That maybe easier said than done. One reason, an issue that`s become increasingly important to many members of the World Economic Forum is globalization, the idea of governments and businesses working more closely with each other and becoming more integrated.

Globalization is controversial. Its supporters say it`s created jobs and industries in poorer countries, led to lower prices for goods and helped nations work together toward solving the world`s problems. Its opponents say it`s led to bad working conditions in poorer countries, given certain companies too much influence in the world and eroded the individual cultures of nations.

U.S. President Donald Trump who`s at the forum has spoken out against globalization in the past. He`s also said his administration`s America first policy would prioritize Americans when it comes to issues like international trade or foreign affairs. Because that contrast with the vision of leaders like French President Emmanuel Macron, who`s spoken in favor of globalization and governments working more closely together, President Trump`s speech and the reactions to it will be closely watched when he gives it on Friday.

(BEGIN VIDEOTAPE)

JOHN DEFTERIOS, CNNMONEY EMERGING MARKETS EDITOR: Davos, filled to the brim with snow, is known by locals as the magic mountain, for its pristine air, healing properties and peaceful setting. But during the annual sojourn of the World Economic Forum, Davos morphs in to a haven for the global elite, and even a platform for globalization. This is my 27th year in attendance, serving as a witness to this rapid evolution.

The forum spent the last three decades building the brand around being at the center of radical global change starting in 1990, about two months after the fall of the Berlin Wall, the forum hosted West German Chancellor Helmut Kohl and his East German counterpart Hans Modrow.

Next up, China`s leadership rolled into Davos to celebrate its role as a giant exporter.

Resistance at globalization surged at the dawn of the new millennium. Protesters made their way to Davos to show global CEOs and policymakers firsthand that change was moving too fast.

But none of this dented the forum. It rode a wave of growth with the architects behind the digital revolution. It served as a venue to help resolve global conflicts and they even debated the merits behind the global financial crisis.

A decade later, the game has completely changed. Enter Donald Trump, raising the populist tenor, threatening to erect trade barriers and putting America first. His protectionist zeal can potentially rock the very foundation of the forum.

From the 300 people that attended the first year I came to Davos, to ten times that amount now, 2018 is the year the forum is leaning in. There are record number of government leaders, the emerging market darling India, its prime minister will have a high profile, juxtapose against Mr. Anti-Globalization, Donald Trump himself.

Davos man or Davos woman, the term used where the ultimate globalist, has met its match in the U.S. president, as this enclave in the Alps fights to stay relevant for the next half century.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

AZUZ (voice-over): Ten-second trivia.

The founder of Children`s Supermart later opened what famous retail company?

Toys "R" Us, FAO Schwarz, Big Lots, or KB Toys?

Charles Lazarus, the founder of Children`s Supermart, eventually opened the hugely successful Toys "R" Us.

(END VIDEO CLIP)

AZUZ: Hugely successful for decades anyway. Last September, Toys "R" Us said it was filing for bankruptcy protection, meaning it was billions of dollars in debt and needed to reorganize its business to stay open.

At the time, "The Wall Street Journal" reported that company would need to close some stores as part of the process, and yesterday, Toys "R" Us announced those closures. One hundred eighty-two locations in more than 40 states and Puerto Rico are on the list. This includes dozens of Babies "R" Us stores, which the company owns and in all, the closures account for about one-fifth of all the Toys "R" Us retail locations in America. The 700-plus stores that the company has outside the U.S. won`t be closed.

Why is this happening? Two big reasons, one is named Amazon, one is named Walmart. Both are giving Toys "R" Us serious competition. But the company CEO says these closures give it the best chance of coming out of bankruptcy as a stronger company.

(BEGIN VIDEOTAPE)

SUBTITLE: NASA is testing new technology that allows an aircraft`s wings to fold in midair.

The tests were performed at NASA`s Armstrong Flight Research Center in California.

The prototype aircraft uses lightweight materials such as alloys to fold the outer parts of its wings.

The alloys used in the tests are materials that "remember" their shape when triggered their temperature.

A potential benefit for commercial airliners includes increased aerodynamics without the strain of heavy hydraulics.

Folding wings may also help achieve supersonic flight, or traveling faster than the speed of sound.

(END VIDEOTAPE)

AZUZ: Pick a card, any card. Pick a rabbit out of a hat. Basic magic tricks used to keep secret. They were shared from magician to magician, or in kits or books you`d have to buy. But now, you can learn many of them for free in minutes on YouTube. Rabbit not included.

So, how can a performer keep up with the speed of the Internet and even use it to make magic.

(BEGIN VIDEOTAPE)

SUBTITLE: Magician or Hacker? Mostly Human Conversation with Laurie Segall.

DOUG MCKENZIE, MAGICIAN & MENTALIST, MAGIC 2.0: What are your names, by the way?

UNIDENTIFIED MALE: Raven.

MCKENZIE: Raven, I`m Doug. And?

UNIDENTIFIED FEMALE: Yanita. Yanita.

MCKENZIE: Yanita, nice to meet you. And how are you guys related?

UNIDENTIFIED MALE: She`s my wife.

MCKENZIE: Perfect. I`m going to see if I can get a connection between you guys.

Pull out your phone, do you have your phone with you? And same thing, pull out your phone.

LAURIE SEGALL, CNN TECH SENIOR CORRESPONDENT: You`re work is really interesting because you do incorporate kind of old school magic with new technology.

MCKENZIE: So, you know, there`s a history of magicians being at the forefront of technology. The first ever hacker was a magician.

And maybe hold your phone in your right hand. Hold your phone in your left, I`m going to come behind you like this. With your other hand, I`m coming between you like this, and your other hand, give me a favor, hold up one finger like this, same thing, watch. If I take your fingers like this

-- all right, touch them, ready, one, two, three, I`m going to touch them like this. Don`t let go, OK?

You get a call and you`re getting a call as well from each other? Yes?

Answer it, answer it, make sure you`re connected. Are you connected?

UNIDENTIFIED FEMALE: Yes.

MCKENZIE: Yes? Now, here`s the thing, don`t hang up, don`t hang up, bring your phones down like because you`re still connected. Look, still connected, watch. Tick your fingers on three, one, two, three. I`m going to pull them apart, ready? Like this. It disconnects.

UNIDENTIFIED FEMALE: Wow. You`re amazing. Can I get a picture with you?

MCKENZIE: Sure. Here I help you.

You know, I have this history of tinkering and building and throughout time since 1900 until about now, technology has advanced a lot faster than magicians will be able to keep up with.

SEGALL: I would imagine as a modern day magician, it must be harder to keep secrets and to keep what you do as secret.

MCKENZIE: Technology has been bad for magic and good for magic at the same time, because magicians used to like protect their secrets so well.

Nowadays, you can go on YouTube and you can find a lot of magic secrets. When it`s something that`s like a 595 download and it`s a simple secret, you don`t have the same respect for it as when it took you years to learn or track down or figure out.

Where are you guys from?

UNIDENTIFIED FEMALE: Sidney, Australia.

MCKENZIE: Sidney. So, can I show you guys a little bit of magic? Can we try that? Perfect.

What you guys name are?

UNIDENTIFIED FEMALE: Krista (ph).

MCKENZIE: Krista, I`m Doug.

UNIDENTIFIED FEMALE: Nice to meet you.

MCKENZIE: Nice to meet you. And?

UNIDENTIFIED MALE: Alina (ph).

MCKENZIE: Alina. Alina, you have your phone. Do me a favor. Think of something you could find in Wikipedia. It could be a person, a place, a thing, it could be anything you`d like, OK?

I mean, just search for an article on that in Wikipedia and don`t tell me what it is. Don`t even show it to the camera.

And, Krista, do me a favor. I want you to go to the middle of the article, just scrolls in the middle and think of any long word in the middle of that article. Just think of a long word in there. Don`t tell anybody what it is. Just think of one. Don`t point it out or anything like that.

Let me go with this.

For the first time, what was the word you thought of?

UNIDENTIFIED FEMALE: Advantages.

MCKENZIE: Here you go.

(LAUGHTER)

SEGALL: What do you say to people who say magic doesn`t exist?

MCKENZIE: So, I think magic does exist. But magic exists inside people`s minds. So, magic is a feeling, right? And my job as a magician is to evoke that feeling in you.

(END VIDEOTAPE)

AZUZ: It`s kind of like prestidigitation, using the magic of the Internets to reveal how peer to peer communication can still flourish and you are elevate a field with secrets endanger of vanishing. You got a sleight of hand it to him for equivoking a new router of Internetainment.

I`m Carl Azuz and CNN 10 reappears tomorrow.

END