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QUEST MEANS BUSINESS
Fed Hints At June Rate Rise; Businesses Split on Brexit; Polls Suggest Result too Close to Call on Brexit Vote; Clinton Wins Kentucky Primary; Silicon Valley Responds to Trump Criticism; Zuckerberg to Meet with Conservatives; Kidnapped Nigerian Schoolgirl Found; Trump released List of Supreme Court Candidates; IOC President: "Zero Tolerance" on Doping; Dover a Common Entry Point for Immigrants; Chinese Companies Spend Big Overseas; Ola Cabs Made Cash Payment a Part of Their Business Model; Actress Robin Wright Demands Equal Pay. Aired 4-5p ET
Aired May 18, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] PAULA NEWTON, CNN ANCHOR: The Fed's message to the market today, you didn't listen to us. And that turned out to be a turbulent
session on Wall Street. The DOW is down as trading comes to a close. It's Wednesday, May 18th.
The Fed says rate rises could come sooner than anyone expected, and it warns Britain's referendum could shock markets. Businesses are split on
Brexit. We'll get the view from the factory floor, and we'll go to Dover, the battleground for Britain's fight over immigration. I'm Paula Newton
and this is QUEST MEANS BUSINESS.
Tonight, 35 days and counting before voters in the United Kingdom decide whether to make a break from the European Union. Now, the vote that could
impact the U.K. for generations was hanging over the opening of a new session of parliament. In keeping with tradition, Queen Elizabeth outlined
the priorities for the month ahead. The speech made no reference to the so-called Brexit, but it focused mostly on social issues such as prison
reform. However, the big question, should Britain remain a member of the European Union is on just about everyone's mind in the U.K.
Polls at this point suggest the result is far too close to call. That's not just for a shortage of surveys but the lack of voting history on the
subject makes it hard to know how reliable any of those polls are. Now, we've seen polls that show most business leaders in the U.K. are leaning
towards staying in the EU. Trade with other EU countries is crucial to Britain's economy. $329 billion worth of British goods or 45 percent, all
of its exports, wind up in EU states and $413 billion or 53 percent of British imports come from the EU.
CNN's Money's Europe Editor, Nina dos Santos joins us now from the town of Cirencester in the west of England. Nina, the whole battleground really
for Brexit has been on the back of the economy and even those trade figures that we just quoted are hotly disputed. What have you been finding when
you speak to both small and large businesses?
NINA DOS SANTOS, CNN MONEY EUROPE EDITOR: Yes, that is the key there. It is the difference between small and large businesses, Paula, because there
is a difference between how the business community views this debate and the actual employees of those businesses, the people themselves who will be
having the chance to vote in the referendum in just over a month from now. Businesses largely according to various trade bodies are overwhelmingly on
the side of the remain. They want the current status quo, albeit some in slightly more reformed fashion. Largely because they say there's too many
risks to leaving the European Union.
What we're talking about is the largest bloc of customers anywhere in the world that are freely accessible by countries like the United Kingdom, a
potential market of some 500 million customers. I've been speaking to all sorts of businesses, big and small. Businesses like for instance, Ziemans,
the large German electronics and engineering giant, which employs nearly 400,000 people around the world, 14,000 of those staff, Paula, are in their
13 factories across the United Kingdom. The boss of that company saying, "Well, look, we're German firm. We've invested an awful lot in the U.K.
We like the U.K. as a base to have access to such a huge amount of customers.
But then on the other flip side of it, if you go further down the size of the balance sheet, many small to medium-owned British owned enterprises
they're not getting really what they want out of Brussels. They say that it favors the big guys and there's just too much rules and regulations.
NEWTON: And in terms of those rules and regulations, has there been empirical evidence to show that it is burdensome and that there is
potential that Britain could do better outside of the EU?
DOS SANTOS: This is a really contentious topic. When it comes to the numbers, of course, normally in many votes when it comes to the economy,
the economy often swings about, because it is the one thing that is quantifiable. But many of the numbers here are also hotly contested for
the main reason that we don't really have anything to compare them to.
Now, let's start out with the fact, Paula, that when it comes to the remain side, people who want the U.K. to stay inside the European Union, there are
far more facts and figures to go on because the U.K. is already a member of the EU. So we know at the moment what the economic benefit is.
But the detractors of the European project, those who want the U.K. to leave and say it would be better off outside. Or point to the trade
deficit that you were just mentioning before. The fact that you U.K. exports far less to European countries than it actually imports than it
actually imports. Obviously, they feel that Europe is getting a better deal from that side of the equation.
[16:05:00] What people on the leave side will often do is engage in very emotive arguments? They will point out that many years ago when Britain
had many different trading partners that are now part of the commonwealth, they could trade far freer with them when they weren't hamstrung by
European trade regulations that are already in place. But the real reality is that nobody knows if the U.K. were to decide to vote to leave, what kind
of model it would espouse. And that would make a really big difference to how the GDP, how the currency and various other economic factors that
affect people with businesses and towns like these play out.
Would the U.K. decide to emulate various models like Switzerland, like Norway, like Canada, for instance, Paula? Nobody really knows what kind of
trade deals the U.K. would be able to strike up with its partners if it were to decide to leave, and I should point out one of the big partners,
potential partners that's touted all the time is China. China is an example of an emerging market and there's slowing down, not growing even
NEWTON: Yes, and as always with this it is hard, very trick to separate the emotion from the economics. Thanks for being with us, Nina dos Santos
there live for us.
Now, joining us from Brussels is Daniel Hannan, a conservative member of the European Parliament and an advocate of the leaving the EU. The irony
not lost on me, sir, that you're in Brussels. You're a member of European Parliament and yet you really would like to be able to not have your job
any longer. I mean, as far as your concern when you look at the polls and you've not been able to move the needle on that much. What do you think is
still the most striking argument? What's the argument that you're bringing door-to-door in Britain?
DANIEL HANNAN, CONSERVATIVE MEMBER OF EUROPEAN PARLIAMENT: Well, thanks, Paula, you're right. I'm trying to put myself out of a very comfortable
and well-remunerated job, with very good perks and expenses, and I wouldn't be doing that if I didn't think that it was in the British interest. And
indeed that there would be plenty of opportunities in a post-EU Britain for newly unemployed members of the European parliament, and I think it does
come down to the economy.
For me the central fact is this one. Every continent on this planet has experienced substantial economic growth this century except Antarctica and
Europe. As you were just discussing there with Nina, we're a trading country. We're a maritime country. We need to be where the customers are.
We don't sit on great natural resources in the U.K. The customers are increasingly not in Europe. Our trade with the EU is in deficit and
shrinking. Our trade with the rest of the world is in surplus and growing.
NEWTON: But many would argue you would have the best of the both worlds and it's interesting that you talked there about economies growing. You
mentioned Europe. Britain has grown and it's grown quite well in the European Union. Why not just stay in? David Cameron has been at pains to
say, look, he's got a much better deal from the EU than anyone hoped he would get and you have your pound. You will keep your pound and keep a lot
of other powers beside. Can't you have the best of both worlds by staying in Europe?
HANNAN: Well, that's some sort of concession that you're allowed to keep your own currency? I mean, everywhere else in the world it's taken for
granted that you can do that. New Zealand isn't applying to join Australia and not saying we get to keep our currency.
NEWTON: But it's not taken for granted that you have access to markets that you have now being part of the EU.
HANNAN: But it's really important to understand that the European Union is not a free trade area. It's a customs union. When you join the EU, you
give Brussels 100 percent control of your trade policy. You cannot then sign a bilateral trade agreement with a country that's outside the European
So, for example, we can't sign a free trade agreement with Australia. It's currently being blocked by a dispute involving Italian tomato growers. We
can't sign a free trade agreement with Canada. It's being held up because of an unrelated row about access for Romanians wanting visas to Canada.
I'm not saying that the Romanians or the Italians are right or wrong, but how on earth have we put ourselves in position where we can't exploit the
natural advantages of language and law, custom and kinship that connects us these old friends of ours? It might have made sense 40, 50 years ago when
it looked like Europe was the center of the world, but now the EU is collapsing as a share of the world economy, and we find that we're shackled
to a cadaver.
NEWTON: Mr. Hannan, you're going against everything that the Prime Minister is saying, that the IMF, the governor of the Bank of England, the
United States. What do you have to give voters right now, and you need to sway quite a few if you're going to win this campaign, to say, no, we
believe leave will give Britain the best chance in the economy in the years to come?
HANNAN: Well, there's definitely a division between the very grand people you've mentioned, the tax-free bureaucrats and international functionary of
the IMF, the politicians, the diplomats and mega banks and the multi- nationals and the general population, the people who vote for me and whose interests I represent.
[16:10:00] Being outside the EU will mean cheaper food. It will mean cheaper fuel. It will mean lower taxes. And although the Davos men envy,
the people who go from international seminar one after another name- dropping might not like the presumed loss of influence. For ordinary people the increase in the standards of living and the return of our
democracy, the ability to hire and fire our lawmakers, will much more than compensate for the loss of income of a few Eurocrats like me.
Mr. Hannan, we'll leave the debate there just for this minute though as it continues over the next several weeks. We appreciate your time.
Later this hour we'll take you to dover, the English town that's the closest to the European mainland. It's a major point of entry and a
flashpoint, of course, for Britain's immigration debate.
Now, even the U.S. federal reserve is talking about that U.K. referendum. The next Fed meeting is just a week before the vote. Ahead of that, we'll
show you what Wall Street makes of it.
NEWTON: The DOW plunged about 200 points after the Fed released minutes from last month's policy meeting and then it rallied late in the session to
close off just about three points, as you can see right there. The minutes showed a rate hike in June is a real possibility and so that's how the DOW
finished the day as you can see kind of about even and let's get straight to Paul la Monica. I mean Paul, I thought it was kind of funny that the
Fed minutes kind of showed a scolding like, we don't think you heard us. June is still on the table. We could still raise rates in June and, of
course, we had that wild swing in the market.
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Yes, definitely. There was a level of finger wagging maybe from the Fed that not so fast. Everyone
that's thinking we're just going to sit tight and do nothing until this little presidential election is over.
The economy is always the main focus of the Fed. It's not politics. It's not the stock market, but investors never seem to learn that. So I think
Janet Yellen and the rest of the central bank policy-makers they are going to look at all the data, and if things continue to improve in both the job
market and the housing market and you see oil prices continue to rise, which could lead to more inflation pressures. Then, yes, you know what?
The Fed should probably raise rates in June instead of just sitting tight until the end of the year in 2017 and I think that this was a stern
reminder of that fact today.
NEWTON: And in terms of the market being jittery here. We were just talking about Brexit. Of course, we have this U.S. election. I mean, many
people are saying that, look, this is just going to be the way it is until November. Earnings notwithstanding, and other financial news
Yes. I think if you're a fan of volatility, then, you know, buckle up and enjoy the ride for the next few months because we probably are going to see
a lot more days like this. The day itself was volatile. I mean, when you look at the final closing figures, it wasn't that bad. Pretty much
finished flat. But it was, you know, a bumpy ride along the way. And I think that we're going to have the market continue to be obsessed minute by
minute with every data point, with what's happening in the polls, be it Brexit next month or the U.S. presidential election. There's a lot of data
and it's a data-driven world right now.
[16:15:00] NEWTON: Yes, again, all focus clearly on the Fed, Janet Yellen expected to speak twice before the Fed decision in mid-June, so I'm sure
you'll be listening to that quite closely. Thanks, Paul, appreciate the update.
LA MONICA: Thank you.
NEWTON: Now, it wasn't much but it was enough. Hillary Clinton ground out a narrow win in Tuesday's Democratic primary in Kentucky preventing Sanders
from extending a recent run of victories. Now, on the same night Sanders took Oregon by a healthier margin. The results leave Clinton less than 90
delegates away from clinching her party's nomination.
Now, Silicon Valley is not happy though, some in Silicon Valley, with Donald Trump. The Republicans' presumptive nominee told Reuters there's a
bubble in Silicon Valley. He said some tech companies are, in his words, so weak as a concept and they are selling for so much money. Now tech
investor Mark Anderson has responded on twitter, of course. He laughed off Trump's warning saying, "From now on, if you say there's a tech bubble,
you're agreeing with Donald Trump."
Now Trump isn't alone, however. Marc Benioff, the boss of the cloud computing company Salesforce, also says many high-flying startups are
likely to crash and, of course, there are other people on Wall Street and in Silicon Valley saying that may be the case.
Joining me now is Gillian Tett, the U.S. Managing Editor of "The Financial Times." And Gillian, I have to tell you that you wrote an article a couple
of weeks ago, which as usual was prescient. Because you really pointed to the fact that, look, the populism involved in this election and whether
it's Donald Trump talking about a tech bubble or Hillary Clinton talking about a raise in the minimum wage, it is the populism of this campaign
that's going to affect those financial markets. Just explain that to us.
GILLIAN TETT, U.S. MANAGING EDITOR, "THE FINANCIAL TIMES": Well, what I was basically trying to do is say what do the policies being tossed around
mean for average investors? Now the problem is when it comes to Donald Trump it's very hard to say what his policies are. Because frankly I don't
think he knows for sure either. But the reality that there are investors all over the world right now who don't have time to wait. They want to
know what to do with their money.
So I try to tease out five key themes that investors need to watch. And these are themes like don't buy banks. Because I think it's unlikely that
Trump will be a big friend of Wall Street and Hillary Clinton under pressure won't be either. Don't buy bonds. Because I don't think Trump
will care much about the debt and I actually don't think Clinton, again, under pressure from Sanders, is going to be try to cut the debt
Go out and buy infrastructure stocks, cement stocks. There's a lot of talk about trying to rebuild America quite literally. Another key thing is look
for currency volatility. I mean, even before Donald Trump said he wouldn't necessarily mind a weaker dollar. The reality is that his views on
currencies are very unclear, and that could mean investors take fright.
Lastly and this cuts into the tech issue, look at every single stock in your portfolio and think about political risk and think about the dangers
of precious government intervention. Because Hillary Clinton has spoken a lot about pharma already. Donald Trump is talking about everything from
pharma to tech now and to many other sectors. And yet if you flip that one its head some investors, some investor, some big family offices that I've
spoken to, are actually saying maybe it's time to look actively from at stocks which may actually benefit from capricious government intervention
and try and buy those instead.
NEWTON: Yes, and that would certainly be a shrewd strategy at this point. Some people are a little bit more worried, Gillian, that it doesn't matter
if it's Hillary Clinton or Donald Trump, that the markets are really just take a hit because of that volatility. I mean, do you see that happening?
Donald Trump himself for some reason says that he believes the market is in for a big crash.
TETT: Yes. I mean, Donald Trump says a lot of things, and one of the problems is that he tends to toss out ideas rather impetuously and it's
very hard to define what actually he means when he says it. But when he's talking about the fact that the tech bubble is or the tech stocks are in a
bubble over on the west coast, I mean the reality is he's probably echoing a view held by many other investors. And in some ways, if he goes into the
next election with the stock markets having taken a beating with Americans feeling even worse about their wealth and about the state of the economy,
that's probably going to play into his hands.
I don't think he's so much of a conspiracy theorist that he's actually trying to do that deliberately, but reality is that the more turmoil he
stokes up between now and November the greater the chance or the conditions will be playing into his camp, not the camp of stability which is basically
what Hillary Clinton is representing.
NEWTON: Yes, Jillian, if we look further down the road, so whoever becomes president, whether it's Hillary Clinton and she's a little bit more
interventionist perhaps and Donald Trump and you said a bit unpredictable there. Some people when they look at the longer term health of the U.S.
economy it's not going to matter and not going to matter especially when you have the independence of the Fed. I mean, what do you think?
[16:20:09] TETT: Well, it's funny that you mention that, because I met with a bunch of big CEOs last week, over on the west coast. And the
message for many of them is the best thing about Donald Trump is that actually if he gets into the White House, most of them would say God
forbid, but if he gets into the White House it would actually be able to do that much. Because the dirty secret of Washington is the actually the
president is very constrained by Congress, and if Congress is in Republican hands, Trump may end up be also to say a figurehead if he were to actually
win this race.
I think that's a little bit too cynical. I think in many ways Trump does have an agenda which he would love to put into place if he were to be
elected. In my view it's all about rebuilding America in a literal sense. I think he is obsessed with infrastructure, with being like an Eisenhower
Mach 2. And those are the kinds of things people should be watching for. Certainly right now the reality is investors are probably placing and
facing more political uncertainty than they have seen for decades, not just in America but in Europe too. And this whole idea that somehow it was just
emerging market regions like Latin America where you had wild political swings, that idea is dead.
NEWTON: Yes. Definitely a new paradigm there. Gillian, thank you so much and we'll continue to check in with you as we continue the wild ride that
is this campaign. Appreciate it.
TETT: Lots of news to follow. . NEWTON: Facebook's CEO, Mark Zuckerberg, is getting ready now to sit down
with prominent figures from the conservative media. He invited them to discuss allegations that the social network is biased against them.
Facebook has been accused of suppressing right-leaning stories on the site's trending section. CNN political commentator S.E. Cupp will be among
those at the meeting and before that meeting she told me she expects an open dialogue.
S.E. CUPP, CNN POLITICAL COMMENTATOR: I've been told that Facebook wants to hear from us, which is why they kept the meeting relatively small. And
I'm sure they want to reassure us or walk us through exactly what happened and reassure us it won't happen again. But I'm really going in with an
open mind. I want to learn more about the problem and the issues, and I assume Facebook wants to learn more about us. The funny thing is that
conservatives and Silicon Valley have a lot in common. We come down on a number of issues on the same side, and so we should be working together
NEWTON: Did the news that perhaps the trending topics were skewed liberal and Facebook says they haven't found any evidence of that, but does that
kind of feed into what you thought as a conservative all along? When you saw the headline, you thought, yes, of course, this is true.
CUPP: I didn't actually. You know, I came up in the business at a time when Facebook was really becoming an important and empowering tool for
people in my business to promote themselves, to get exposure, to meet people, to sell books and to get in front of the right kinds of people.
And so Facebook was, you know, instrumental in terms of my career and in terms of, you know, my work in the conservative movement.
Whether that was on issues of gay marriage or gun rights or life, connecting me to the right people was everything. So, no, I didn't. I was
actually pretty surprised. What I did like though is that they addressed it right away, you know. They issued a statement, they were taking it
seriously and looking into it and now they are meeting with us. You know, that isn't always the case. If you'll recall when the news that the IRS
had been conservatives broke we were stonewalled.
NEWTON: Do you think a lot of it might being damage control? From a perception point of view this really puts Facebook behind the eight ball.
What do you think? I'm so interested in the fact that you don't think there's anything really to this story really.
CUPP: No, that's not true. There's a PR problem, hence the meeting, and there is a practical problem. I want to learn more about that problem. I
want to learn more about, you know, the human error here, whether it was sinister or not, you know. I want to learn more about the process and how
these things can happen and preventing them in the future, and I assume that's the point of this meeting.
In addition to damage control to actually get to the bottom of a problem and figure out how to stop it. I see a problem. You know, it's
undeniable, but I also know that conservatives need to work with Silicon Valley going forward and Silicon Valley needs to work with conservatives.
This was a bit of a setback, but I'm hoping we can all get over it together.
[16:25:00] NEWTON: And in the next few hours we should hear what has come of that meeting. Now the connection between Brexit and immigration.
Violent protests over the refugee issue. Activists who say they want the door to be closed to immigrants say leaving EU would restore Britain's
control of its borders.
NEWTON: Hello. I'm Paula Newton. Coming up in the next half hour of QUEST MEANS BUSINESS, the CEO of India's answer to Uber tells us why the
company offers a unique opportunity for startups and Claire Underwood is used to making power plays on "House of Cards." and now the woman who is
playing her strikes a hard bargain in real life. Before that, these are the top headlines we're following this hour.
One of the Nigerian schoolgirls kidnapped by Boko Haram has been found. Now, these are the first images of Amina Ali Nkeki, who was found with a 4-
month-old baby and with a suspected terrorist who says he's her husband. CNN's Stephanie Busari, spoke to a man who found the young woman and
recognized her as one of the 276 girls kidnapped in 2014.
(BEGIN VIDEO CLIP)
STEPHANIE BUSARI, CNN PRODUCER: He told me she was in a very different state to what he recognized her. She was thinner. She was in a dirty
condition. He described her and clearly not taken a bath. so all kind of reports point to her escaping. Interestingly enough she was with a baby
and a man she identified as her husband. He was a Boko Haram fighter. The man, the eyewitness claims, told them that he was also abducted from an
area called Mubi, in northeastern Nigeria and taken to Sambisa Forest to become a Boko Haram fighter, and while there he was given Amina to marry.
(END VIDEO CLIP)
NEWTON: Thirty-seven people have been known to die in Sri Lanka after landslides triggered by heavy rain and flooding. The red cross has managed
to rescue more than a 180 people buried by debris in the Kigali district. Authorities say, hundreds of thousands of people have been forced to leave
Donald Trump has released a list of 11 judges he says he would consider appointing to the U.S. Supreme Court if he's elect the president. Now, the
list features conservative judges that Trump says could replace Antonin Scalia who died in February. President Barrack Obama is trying to persuade
Congress to confirm Merrick Garland to the position, before he leaves office.
[16:30:00] The head of the international Olympic Committee says he will take a zero tolerance approach to doping in athletics. The U.S. is
investigating claims of widespread doping by Russian athletes. In an exclusive interview with CNN's Samantha Davies, Thomas Bach, says
authorities will not tolerate cheating.
(BEGIN VIDEO CLIP)
[16:30:30] THOMAS BACH, PRESIDENT, INTERNATIONAL OLYMPIC COMMITTEE: This is what they have done and what the IOC is initiating immediately is a
full-fledged inquiry into everything. and then based on these facts then we will take our decisions and these decisions will be about zero
(END VIDEO CLIP)
NEWTON: Now, back to the Brexit campaign currently on. Nick Herbert says leaving the European Union would be a jump into the void. The British MP
is happy to be called a Euro skeptic and is also the chairman of Conservatives for Reform in Europe, and he told me why the U.K. needs to
be at the big table in Brussels.
(BEGIN VIDEO CLIP)
NICK HERBERT, BRITISH LAWMAKER: The vast majority of businesses are showing that they want to stay in the single market and it also, of course,
enables us to trade not just with the EU but with all of the countries, 50 or so countries that the EU itself does trade deals with. So you're
talking about full access to the world's largest single market that has helped to keep prices down, has maximized inward investment into this
country and has helped create jobs. With some 3 million jobs linked to our trade with Europe.
NEWTON: Right, but specifically, for Campaign Leave, business for Britain which are independent, more of the smaller companies. They claim that just
5 percent of companies in Britain trade directly with the EU and yet everyone must comply with the infuriating regulations that are imposed by
HERBERT: Well, international surveys show that we're one of the least regulated countries in the world in terms of the burden on our businesses.
That's why Britain has created 2.4 million jobs over the last six years. So there clearly isn't a regulatory burden that is holding us back in that
sense. There are two important sets of arguments for businesses. For those businesses that directly trade with Europe. There are hundred
thousand businesses that do that. Of course, they want full access to the single market and being outside of those arrangements would disadvantage
them and be very costly to the country. But for all other businesses there is, of course, the question of economic stability, which has been hard won
in this country after the financial downturn and the government and the Bank of England.
NEWTON: But that is the point of contention. Many people do not believe there would be that instability. I'm intrigued by your background in this.
Years ago you were for the Europe yes, euro no campaign. You fought very hard to keep the pound. Why at this point in time, what are you trying to
prove to the citizens of your country to say, look, it's different this time and this is why we must continue to stay in Europe because, let's face
it, most people believe it was quite your campaign to keep the pound was quite successful.
HERBERT: Well, just to say that on this point about instability, the governor of the Bank of England, no less, has warned about an economic
shock and the impact on our economy and that's what other independent bodies are saying. It would very be very damaging to all businesses. On
the campaign, which I led 15 years ago, the no campaign against joining the euro, that as you note said Europe yes, euro no. Opposition was that
Britain has an advantage being in the single market, but that we should keep our own currency. And that does indeed give us the best of both
worlds. That remains my position and the majority of businesses in this country.
We are outside of the Eurozone. We will be set apart from deeper integration if the Eurozone countries want to do that, because the prime
minister has secured that in his deal. But we have full access to the single market. We also are outside of Europe's passport-free area so we
keep our own borders. So this is a special status. A relatively advantageous arrangement under which Britain has been prospering. And the
question is, why would we want to take a risk with a leap into the dark for a specifies alternative arrangement, which all the independent experts are
warning us could cause as financial shock and make our country poorer?
NEWTON: Now, well, economic factors are, of course, a major issue. Immigration is playing a role. Many of those are calling for a Brexit
saying Britain needs to regain control of its own borders, and that's why we're taking you right now to Dover. Yes, it's those famous for those
white cliffs and the place where many new arrivals first set foot in Britain. And it's also been the scene of violent protests in recent
[16:35:00] Our Hala Gorani is there for us live right now, and Hala, I'm intrigued by the emotion of this debate. You know, we've just outlined a
lot of the economic reasons and we've have people from remain and people from leave. And yet is it really this whole issue of keeping control of
the borders and sovereignty? Is that really what is capturing people's imagination there in Britain?
HALA GORANI, CNN CORRESPONDENT: Well, I think for those who would like to least EU it is. In fact, it's consistently cited as the most important
issue for people who support leaving the EU. They believe there are too many migrants in this country, legal migrants from other European countries
who take advantage of benefits and put stress and pressure on schools, on hospitals and other services in this country. If you ask those who say the
U.K. should remain inside the EU, they will say economics is the primary reason to believe that the U.K. benefits from being a member of this
organization. Because there are jobs created, they say. Because in the end GDP growth benefits from being a member of a free market. Twenty-eight
countries with no tariffs and certainly a freedom of movement for goods and people. They believe that this is a net benefit for their country.
So really what's important to see here is that the issues are different. The primary issues that concern voters on both sides of this debate are
different. There is another divide and that is a generational divide. A vast majority of the voters who say they support remaining inside the EU
are younger than those who say they support leaving the EU, and one of the explanations for that is that people younger, primarily under 40 years old,
have known nothing other than a scenario in which the U.K. has been a member of the European Union. Those who are older believe that sovereignty
has been erode, that too many laws are voted in Brussels and they would like sort of the good old days back when you ask them why they prefer
leaving the economic and political union that is the E.U., Paula?
NEWTON: Yes, it will be so interesting to see about turnout, about if the younger people or the older people end up turning out for the vote. I
mean, Hala, is summer is unfortunately notorious for a lot of the heart- rendering scenes that we see in Europe with so many migrants arriving on the shores, and the whole argument that starts about what do you do with
them. And do you think that that will play into this debate, and I really mean the optics of the debate?
GORANI: Certainly the optics, because, look, the U.K. is not a member of Schengen. Anybody who comes in gets their passports checked, whether they
are European citizens or whether they're citizens from another part of the world. So really when you see a situation like the mass migration crisis
that we've been seeing in Europe, primarily from countries like Syria and Iraq and elsewhere. It plays on emotions among people who believe the U.K.
would be better off, "controlling its borders." Those who support remaining in the EU will say, but the U.K. does control its borders.
There's a reason, and I was speaking with a member. European Parliament, who supports remaining in the EU, saying, look, there's a reason why people
in Calais would like to come the U.K. are stuck on the other side of the border. Just about 30 miles over my shoulder, really, is what we're
talking about here. Calais, this is how close we are to France.
It is because the EU controls its borders. Emotions is at play. The arguments are very different on both sides. The issues are different. And
a same set of statistics can be used by supporters of both sides of the argument to argue different positions. So it's very interesting to see how
passionate it has become even though we're really 30 days away from the actual referendum on June 23rd, Paula.
NEWTON: Yes, and important though to lay out all the issues for our viewers before that all-important vote in a little more than a month. Hala
Gorani there live for us from Dover. As you just heard Hala say, this decision is causing divisions right across the country.
Richard Quest will be going on the road to find out what's on voter's minds as they prepare to vote on staying in or getting out of the EU.
(BEGIN VIDEO CLIP)
RICHARD QUEST, CNN ANCHOR: On June the 23rd, the United Kingdom will take a crucial decision about the route the country is on. Will there be a
sudden turn? A change of direction? Or is it steady as she goes? Its very future in Europe is at stake.
The week before the vote, I'll be caravanning across the country, getting the sense of the nation's mood from the village greens to the lights of the
big cities. Over the hills and far away. Join QUEST MEANS BUSINESS on the road as voters decide whether to remain in the EU or to leave and strike
out on a new path. The U.K., in or out, on CNN.
(END VIDEO CLIP)
[16:40:00] NEWTON: We are all looking through that coverage. Who knew Quest had a Winnebago stashed in the garage somewhere for this very
purpose. Continuing CNN's Money special focus this week on the tech revolution in China. We take a spin with Didi Chuxing, the country's
leading car hailing app.
NEWTON: Chinese companies are continuing think overseas shopping spree. Home appliance-maker Media Group has made a $5 billion offer for Kuka, a
German company that makes industrial robots. Its machines are used by carmakers such as Audi and Mercedes-Benzes. It comes as Chinese companies
increasingly look to foreign takeovers as a way to counter slow growth in China.
Now, China's also got plenty of home-grown successes. We now look at Didi Chuxing, for example. It is the Chinese answer to Uber, and it recently
got a $1 billion shot in the arm from Apple. Matt Rivers hailed a ride.
MATT RIVER, CNN CORRESPONDENT: So you're in Beijing and you need to get somewhere. It's too far to walk, so you're going to need to get a ride.
If you live in China and you speak Chinese, there's a good chance you're going to pull out your phone and open up an app called Didi Chuxing. It's
simple to use really. You just tell the app where you are and where you want to go. And when the car arrives, you hop in, tell them where you're
going and take off.
The Didi Chuxing or DD for short, says rides like this one, happen 11 million times per day across China in 400 different cities. It now says it
has 300 million users and most experts agree its market share is somewhere between 75 and 90 percent. But the company does have competitors in cars
for hire apps. So let's say you forgot your wallet and you have to go back. Except this time, you pull out your phone and you open up Uber.
In most of the world Uber is the alpha app but in China it's more like the plucky startup looking to put a dent in a DD-dominated field. It's trying
to get that foothold by offering extremely low prices and subsidies to its drivers.
You can now grab an Uber like this one in around 50 different Chinese cities, but progress is come at a cost. In February Uber's CEO said the
company was losing over 1 billion U.S. dollars per year here. As in the short term it prioritizes expanding its presence in the hopes of making
money down the road. China has more than 1.3 billion people, many of whom have places to be, but whether it's DD or Uber that gets them there is one
of the biggest tech battles in the world. Matt Rivers, CNN, Beijing.
[16:45:00] NEWTON: And we have much more on "CHINA'S TECH REVOLUTION" on our website CNNmoney.com/Chinatech.
Now in India, meantime, the boss of taxi service Ola cabs, says it's preparing for a future where most people don't own cars. And I found this
very interesting. Earlier I asked its CE, Bhavish Aggarwal, what makes the company different from online rival Uber.
BHAVISH AGGARWAL, CEO OLA CABS: See, the opportunity in Indian is actually a creation opportunity, not really a destruction opportunity. Because in
India if you compare the average car ownership in India to the U.S., India has two-person car ownership. So a lot of creation of mobility has to be
done, and that's how we've designed our company. Creating for the Indian opportunity. In so many ways our business is very, very unique.
For example, in India, people pay with cash, and we accept cash from day one. And al lot of people in India pay with cash. And that's part of our
business model. We have a much broader spectrum of services on our platform. In India we operate bus services. We operate three-wheeler on-
demand services, and we offer cab on-demand services. So it's a much more broader platform in that sense, and much more local features built in from
a local inside, both the consumers and the driver. And if you look at Indian opportunity, over the next five years, more than 300 to 400 million
trips will come under the ride-sharing platform and that's the opportunity that we believe we're building towards.
NEWTON: In terms of your growth, you know, you have a $5 billion valuations by one estimate. What justifies that valuation. What are you
seeing in your growth ahead?
AGGARWAL: Our growth is very, very aggressive, very strong. We do more than a million rides a day in India, and we have a large part of the market
share. We, you know, by third-party we must about 75 percent of the market share. And India being such a large opportunity where essentially
mobility, the paradigm for mobility will be leapfrogged into direct ride sharing. There won't be car ownership at scale. So if you couple all of
these different trends together that actually -- Ola is very well suited to leverage all these trends and built into a very, you know, useful big
consumer business in India.
NEWTON: You don't have to go far in India to realize how frustrating getting anywhere there can be. It's true. I have to ask you though in
terms of the regulatory environment and the security environment. I mean, look, this is a huge issue for anybody running your kind of operation
anywhere in the world really. I know there is an Ola cab driver right now. There is -- there are allegations about stalking, molesting. What kind of
safeguards will you have in place for your customers?
AGGARWAL: Safety is top priority for us, and all our drivers are fully certified, all of them are checked. Their addresses are checked.
Backgrounds are checked. To whatever extent the Indian system makes it possible to check. We build and we allow consumers to have unique features
in the app where they can use an alarm within the ride itself, which goes back to the police station. We profile drivers based on their riding
behavior, driving behavior to make sure we weed out the bad performing drivers, which are considered unsafe in terms of their driving profiles.
There's so many things that a tech company does which make it actually much safer than, you know, hailing a cab off the road in India, or hailing an
auto rickshaw off the road in India. And given our scale the number of incidents that happen are much, much fewer than what happened in offline
world. So consumers actually trust our platform like Ola and because of the safety features we've built, because of profiling of drivers we do, to
provide them a safer ride home, and it remains our top priority.
NEWTON: Now the intrigue on the hit show "House of Cards" is the apparently nothing compared to the real drama behind the scenes and, of
course, it's all about money.
[16:50:43] NEWTON: Life is imitating art behind the scenes of the hit Netflix show "House of Cards." Now, Robin Wright, who plays the
calculating U.S. first lady, has shown that she's just as ruthless in real life. Wright threatened to go public unless she was paid the same as her
co-star Kevin Spacey. Producers folded and gave her the reported $80,000 raise to half a million dollars an episode. It was a tactic her character
(BEGIN VIDEO CLIP)
CLAIRE UNDERWOOD: I'm done trying to win over people's hearts.
FRANCIS UNDERWOOD: Let's attack their hearts.
CLAIRE UNDERWOOD: We can work with fear.
FRANCIS UNDERWOOD: Yes, we can.
(END VIDEO CLIP)
NEWTON: Ooh, fear. CNN Digital Senior Producer, Lisa France joins us from the CNN Center in Atlanta and, Lisa, she real did try that whole fear. I
mean, she threatened them, didn't she?
LISA RESPERS FRANCE, SENIOR PRODUCER, CNN DIGITAL: Absolutely, it was a tactic worthy of Claire Underwood, completely. She let them know if she
didn't get the pay raise she would go public with the fact she was not make being as much as Kevin Spacey. And, you know, she did her research. She
said she found out that at one point her character was actually more popular than Frank Underwood, Kevin Spacey's character, so she felt like
she was worth it and let the producers know and they gave in to her.
NEWTON: I mean, a couple of questions here, Lisa. We've had a lot of stories in the news about pay equity, especially on this show, and yet
Hollywood is not immune and do you think more women in Hollywood will really be, as we described, ruthless about it?
FRANCE: Well, you know, she's not the first actress to come out and discuss the disparity and the Hollywood pay gap. We've had people like
Jennifer Lawrence write a letter, an open letter questioning why her male co-stars get paid more than she does. Of course, Patricia Arquette
famously mentioned it in her speech last year at the academy awards when she was accepting her best supporting actress award.
So, you know, there's a sense that the more women speak up about this the more, you know, they engender this conversation that there's going to be
movement. And some people say why should we even care given the fact that the women make millions of dollars? And what they are saying is they are
exactly like the average women. But what they're saying is they're exactly like the average women in that they should get paid equally for the equal
NEWTON: And Roseanne Arquette on this show has made the point that, look, people look to us as examples and whether you are working in retail or
whether you are Robin Wright that you should be paid equally. I mean, it's intriguing to me though that the producers folded. I mean, in Hollywood,
do you think things are going to change? From the outset people think to themselves, look, we better be careful here or this could end up being a
real media public relations disaster.
FRANCE: I think that Hollywood is going to go the same rate as the rest of the country. It's all about getting your message out there. "House of
Cards" is an extremely, you know, popular show for Netflix. It makes a lot of money, and, you know, I feel like the more actresses continue to have
this discussion and continue to get out in front with the media talking about this, that slowly we're going see the gap closing a bit.
NEWTON: Well, I kind of compared it to extortion and I don't think I would want to meet her in a dark alley in real life or as her character.
FRANCE: She's a tough one.
NEWTON: She sounds like it. Thanks so much, Lisa. Appreciate it.
FRANCE: Thank you.
NEWTON: Now, we want to take a final look at Wall Street. The DOW had a volatile up-and-down day and finished the session almost flat. Yes, all of
that talk and there we are down three points. It fell sharply, of course, after the U.S. Federal Reserve hinted interest rates could rise as soon as
next month, and you better believe it that the Fed and Janet Yellen want the market to know that. They are saying that perhaps they may raise
interest rates as early as mid-June. We'll hear from Janet Yellen twice before that time, and we'll bring that here on QUEST MEANS BUSINESS.
In the meantime, checking European stocks. The FTSE finished flat. The other major indices gained and they were boosted by banks. That may change
tomorrow after they see the news from the Fed. Goldman Sachs released new investment advice though, saying it's been more pessimistic about stocks
for the next 12 months, blaming concerns about growth.
[16:55:05] To the oil market now, brent crude rose trading within a few cents. Just a few cents folks, of $50 a barrel and it's all about supply
problems. In Nigeria strikes and violence have cut output to its lowest level in about two decades. Venezuela, of course, may have the world's
proven oil reserves, but the country has descended into political chaos. And in Canada wildfires close to the most important oil sands installations
have knocked out about a fifth of the country's production and that interruption continues.
Now, cinemas around the world could come into contact with an endless tumbling puzzle. Plans for Tetris, the move, believe it or not are taking
NEWTON: Things may be falling into place for the iconic video game Tetris to hit the big screen. Threshold Global Studios says it's stacking up $80
million for film adaptations. There could be two more levels or sequels to come. The game involves the relentless ordering of tiles. But American
producer, Larry Kasanoff, says the film will be different.
With the backing of a Chinese businessman, Bruno Woo, they plan to make a sci-fi thriller in China. And it follows a trend of small screen
characters going to the big screen. Sony Pictures Animations is making an emoji movie. Is that really necessary. The story apparently unfolds in a
place called Emoji Valley, a secret world inside your cell phones. Nintendo also says it's planning feature animations. All these projects
are trying to emulate success of the biggest movie of them all, "The Lego Move." And that's it for QUEST means business. I'm Paula Newton in New
York. Richard will be live from Beijing here tomorrow. Don't miss it. It will be an exciting show both Thursday and Friday, again, with Richard,
live from Beijing.