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QUEST MEANS BUSINESS

Brexit Polls Send British Pound Haywire; Polls: Support for "Leave" Campaign Growing; Nigerian Militants Sabotage Oil Output; Yellen: Rate Rises Will Be Gradual; BuzzFeed Refuses to Run Trump Ads; JPMorgan CEO in Favor of Trade Agreements; Burberry CEO Take 75 Percent Pay Cut; Benjamin Zander Teaches Leadership Through Music; T-Mobile U.S. is Giving Shares to Customers; Munoz Back at Work After Heart Transplant. Aired 4-5p ET

Aired June 6, 2016 - 16:00:00   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: Apparently that's how you get a good week started. A triple digit gains for the DOW on Monday, June the 6th.

Tonight, the British pound gets full ax. New Brexit polls send sterling sinking. GOP OMG. BuzzFeed dumps Donald Trump. And Christopher Bailey's

checkered history at Burberry. The chief executive is taking a huge pay cut. I'm Paula Newton and this is QUEST MEANS BUSINESS.

Good evening, tonight the pro-Brexit campaign gets a boost and the pound goes on a wild ride as the rhetoric heats up. A pair of new polls show

Britons are leaning away from the European Union. Now, the "Leave" campaign has a 4-point lead in the latest YouGov poll, and a 5-point lead in an ICM

survey. Now that's pushed the pound to a 3-week low. It bounced back tough, later in the day, and really interesting to see sterling ride this

political turmoil out. The polls from YouGov show a divided nation. Opinion, of course, has shifted time and again since September. And on the

last week the "Leave" camp has gained the upper hand. Volatility in the polls has sent sterling as we were saying on an absolutely hair raising

ride. In general, the pound has weakened as the "Remain" camp has lost ground. Now, on Monday, British Prime Minister David Cameron warned the

fall in sterling is just the beginning.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: Add those things together, the shock impact, the uncertainty impact, the trade impact, and you put a bomb under

our economy. And the worst thing is we would have lit the fuse ourselves.

(END VIDEO CLIP)

NEWTON: Now, as we've warned you before, much hyperbole to go on from both sides here. Now, he touted the economic benefits of staying in the EU.

Those who want to leave the U.K. have focused on -- leave the EU, pardon me -- have focused on immigration. Phillip Davies is a Conservative Member of

Parliament. He told me a Brexit would help the U.K. take control of its borders and insisted it would bring economic benefits, as well.

(BEGIN VIDEOTAPE)

PHILIP DAVIES, BRITISH CONSERVATIVE MP: We are now paying 10 billion pounds a year for a 68-billion-pound trade deficit with the European Union. In

which is a declining part of the world's economy, as well. You can have a 68-billion-pound trade deficit for nothing. You don't have to pay 10

billion pounds a year for one of those. And I think that economically and on the issue of immigration the only solution is perfectly clear, and

that's to leave the EU.

NEWTON: You know, the economic arguments have been flowing fast and furious. I suspect that U.K. voters are probably discounting economic

arguments on both sides because there seems to be a lot of hyperbole. For one you're writing an editorial that if we leave the EU, we will regain our

power to negotiate our own deals more quickly with whomever we want. Is that not completely unrealistically when we have countries that have said

categorically to the UK, look, you're getting the back of the line, not the front of the line, to renegotiate the trade deals?

DAVIES: Well, the U.K.'s the fifth biggest economy in the world and President Obama said we would be at the back of the line, the back of the

queue if we wanted a trade deal with America. Well, I asked who was in this queue? And apparently, nobody's in the queue. So being that --

NEWTON: That's not true, actually. They're in the midst of deals with Asia and other side deals Europe. And he saying, look, Asia and Europe come

first. The U.K. is after that. That's very clear.

DAVIES: The pacific deal's being concluded. Now going to be ratified. The negotiations concluded. Only other deal in town is the TTIP deal with the

EU and that's going nowhere, because the EU can't agree. Because there's 28 different countries all with competing issues. The Americans don't

particularly like it, because the French don't really like free trade really. They're a protectionist country themselves. And it will be much

quicker for the U.K. and U.S. with historical ties, pretty good balance of trade that we have between our two countries, our --

NEWTON: That directly goes against what the President said and if you go away from that, every -- so many business leaders, the majority in the

U.K., are saying that, look, this will be damaging. It would be better to just level them. Say, yes, this could be short economic pain, but the long

term will look much better?

DAVIES: I don't accept that because we have a trade deficit with the European Union. So that we buy far more from them than they do from us. So

why would they stop trading freely with us if we were to leave when we would be there single biggest export market?

[16:05:00] The EU doesn't have a trade deal with the U.S. and not likely to have one in the near future itself anyway. So were not losing out on a

trade deal with America, we haven't got one at the moment. So --

NEWTON: You're saying there would be zero economic effect except on the upside the day after a "Leave" vote?

DAVIES: Paula, everything in our country was still keep trading and Germany want to sell us their cars. France will want to sell us their wine.

NEWTON: That wasn't my question. My question is, what will be the impact -- economic impact short term, one to two quarters after a leave vote?

DAVIES: I don't think there will be impact whatsoever in the first two quarters. I don't think there will be impact at all. Life will carry on

pretty much the same as it does now. People will be trading with each other as they do today. There doesn't seem to be any short-term impact, but a

massive long-term bonus by going this alone and negotiating our own trade deals and making our own decisions just like the U.S. does.

(END VIDEOTAPE)

NEWTON: A debate that will obviously only intensify over the next few weeks. In the meantime, today European stocks ended the day higher. Mining

and energy shares were among the top gainers. They were boosted by a rise in metal prices. The London FTSE saw the biggest gains of all the major

European indices. It ended the day up 1 percent.

Now, businesses, too, of course, are divided on Britain's place in the EU. Small companies see an upside to getting rid of all those EU regulations,

while large businesses fear trade with the continent will become much more difficult. The CEO of Airbus warns his company doesn't have a plan "B" if

Britain votes to leave the EU. Now its factory in Britain has 10,000 workers responsible for assembling the wings for all of the company's civil

aircraft. Fabrice Bregier told Richard Quest a Brexit would not just damage his company, it would harm the British and European economies.

(BEGIN VIDEOTAPE)

FABRICE BREGIER, CEO, AIRBUS: As you say, we have 10,000 people developing, producing wings and other equipment's for us on all of our aircraft. So we

will continue to do that. But it would destabilize, I believe, a U.K. economy and probably the European economy and this one is not good for the

business. So as a European, as a CEO of a European company, I really hope that U.K. will stay within the European Union.

QUEST: What would be the model that you would adopt for Airbus U.K. for the wing maker? I realize you obviously have suppliers that are not in the EU,

but nothing on the scale it would be for Britain if it left.

BREGIER: No, and of course, we would not take any short-term decision. My U.K. workers, employees, managers are really part of an integrated Airbus.

And my only strategy is to grow with them. But we would have to look at the consequences of this Brexit. Hopefully, it won't happen.

QUEST: Let me ask you, I'm not going to push you too far, but could you see a scenario where you would move production from the U.K.? Bearing in mind

it would all depend on like a free trade agreement and all those sort of issues. Could you see a situation where you would move wing making or other

production from the U.K. if it left?

BREGIER: No, we have not plan "B" at all. We would have time to take the decisions. We would have time to look at the future consequences. But we

all know that it would destabilize the world and not be good for the European industry and European company.

QUEST: To push this a bit further, because it is in many ways, you know, we could talk about how many planes you're selling, which new models you're

going to create, the 320 and this, that and the other, but those are the everyday issues you're dealing with. But the big issues, frankly, are the

issues of China's growth. The relationships and world trade. The falloff in world trade, the U.S. election, the Brexit. These are the chief executive

matters that are starting to require more of your time, aren't they, and thoughts?

BREGIER: You are very gloomy today and this market is growing. And even with some slowdown of growth in one part of the world, is it China or in

another part of the world. Globally we are in a green market. And so, this is what counts for me as a supplier of aircraft to my customers, the

airlines. Last month, the traffic increase worldwide by close to 6 percent year on year. This is probably what we will expect this year. So we need

more aircraft.

(END VIDEOTAPE)

[16:10:00] NEWTON: That was the CEO of Airbus speaking to our Richard Quest. Richard will be on the road next week listening to British voters

ahead of that all-important referendum. While Airbus aircraft put together across Europe, Richard picked a vehicle, let's just say it's little bit

more British for this grand tour, have a look.

(BEGIN VIDEOTAPE)

That was the CEO of Airbus speaking to our Richard Quest. Richard will be on the road next week listening to British voters. While airbus aircraft

put together across Europe, Richard picked a vehicle, let's just say it's little bit more British for this grand tour. Have a look.

(BEGIN VIDEO CLIP)

QUEST: The United Kingdom, the nation of tradition, culture, queen and country. As the British people get ready to vote on their future in Europe,

we'll be taking to the roads, discovering how the people are preparing for this most important vote in a generation. Caravanning across this green and

pleasant land. 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)

NEWTON: Can't wait. It will be good to get Richard on the ground there.

In the meantime, oil prices rose Monday in part because of the attack on the oil infrastructure in Nigeria. A group called itself The Niger Delta

Avengers struck again bombing to pipelines. CNN money is launching a new series, "Nigeria: An Economy Divided". Today we look at we look at the oil

situation in Nigeria. How a country so rich in the resource can have an oil crisis. CNN Money Africa Correspondent, Eleni Giokos, joins us live from

Johannesburg. And Eleni it's so infuriating. If you're a Nigerian you're saying, how can we be so rich in this resource but I cannot put a liter of

it into my car to save my life.

ELENI GIOKOS, CNN MONEY, AFRICA CORRESPONDENT: Exactly, I mean, Paula, this is the big dichotomy that you see in Africa's largest economy, and of

course, what was Africa's largest oil producer. But because of those attacks in the Niger Delta, it's now slipping to second position to Angola.

That's the point. You have a country that is so oil rich and has been producing oil for such a long time, but yet doesn't have the capacity to

refine the crude that you utilize in your car. And of course, importantly for Nigerians, it's a major source of electricity, because a lot of people

rely on generators around 80 percent of the day. And of course, businesses have also been impacted. These are some of the issues that the Nigerian

economy has been grappling with. And we know that Nigeria relies on oil for 90 percent of its foreign currency, for 70 percent of its national budget

relies on oil revenues.

And then you have got a worry about importing fuel and how you're going to get around the issues. There are existing refineries in Nigeria, but

they've been marred by corruption and, of course, very bad maintenance. Now there's a new multi-billion-dollar project underway on the outskirts of

Lagos that is going to change the playing field in Nigeria. Paula, by 2018, it could make Nigeria net fuel exporter. Very different to what it is right

now. Let's take a look.

(BEGIN VIDEOTAPE)

GIOKOS (voice-over): Nigeria exports more oil than any other African country. It's also in the middle of a fuel crisis. How's that even

possible? It's because Nigeria lacks enough refineries. The crucial step between the crude oil that's pumped out of the ground and the fuel that

goes in your gas tank.

GIOKOS (on camera): You have an oil producer that's importing refined products.

MANSUR AHMED, STAKEHOLDER RELATIONS DIRECTOR, DANGOTE GROUP: Unfortunately.

GIOKOS: It's insane to think that.

MANSUR: It is insane. Nigeria produces between 2.2 and 2.5 million barrels of crude a day, yet, it is not able to process more than about 100,000

barrels a day.

GIOKOS (voice-over): But right outside Lagos, there's a solution and a construction. Africa's richest man is building one of the largest oil

refineries in the world.

ALIKO DANGOTE, CEO DANGOTE: This is one simple largest refinery line in the world, which is 650,000 barrels a day.

GIOKOS: Getting to 650,000 barrels of refined fuel won't be easy. It takes a whole complex covering almost 10 square miles.

GIOKOS (on camera): How's this going to change the playing field in Nigeria?

DANGOTE: Well, it is going to change it a great deal. This one we're building was supply hundred percent need of Nigeria.

MANSUR: If we meet domestic requirement, domestic demand, we will still have surplus to export. So that we can become what we, Nigeria, should be,

the hub of petroleum products supplies in the region.

[16:15:00] GIOKOS (voice-over): The Dangote Group also wants to tap another underused resource, Nigerian workers.

DANGOTE: We are going to have our own direct employees, probably between 2,000 and 4,000.

GIOKOS: Employing thousands and solving a country's fuel crisis won't be cheap, but it will be profitable.

How much is this project costing?

DEVAKUMAR V.G. EDWIN, GROUP EXECUTIVE DIRECTOR, DANGOTE GROUP: Altogether we'll be able to manage it less than $12 billion. Probably we'll be able to

get the investment back within seven years.

GIOKOS: For now, these grand plans still look like this. The refinery won't be completed until the end of 2018 and that means more waiting for

Nigerians.

(END VIDEOTAPE)

NEWTON: It's fruitful and it's impressive, Eleni. And yet we talked about the deadline. Two and a half years from now. I mean, Nigeria has set and

missed so many deadlines now on so many of the projects. From what you can tell, and I know you that you speak to oil executives all over Nigeria, how

realistic is this going to be?

GIOKOS: Well, I mean, firstly, when you talk about the economy, you've got so many worries now and talking about deadlines. We are talking about an

imminent recession, because the first quarter GDP growth really disappointed and contracted by 9.4 percent. In terms of being realistic on

the timeline front, we were on this construction site, which is really enormous. But Aliko Dangote, the man that really is behind this vision, has

been known to deliver on big projects. I mean, one of the largest sugar factory in the world. One of the largest cement factories in the world and

deliver on time.

The question is, by 2018, where are oil prices going to be? How are other refineries in Nigeria are going to be performing and importantly, how is

oil production in Nigeria going to look? Remember the Niger Delta has come under a lot of pressure as we mentioned, because of these ongoing attacks.

So these are all going to be a very important thing to look at by 2018. From a long-term project perspective, this is a really big project and it's

definitely going to be a game changer for Nigeria.

NEWTON: Yes, the entire country counting on it at this point. Eleni Giokos, I know you'll continue to stay on top of this, appreciate it. We'll have

more of Eleni's special reporting from Nigeria on the program this week and online. Just head to CNNmoney.com/Nigeria.

Meantime, BuzzFeed says it won't allow Donald Trump to advertise on its site. And its CEO compares Trump to the hazards of smoking cigarettes.

(COMMERCIAL BREAK)

NEWTON: Now, interest rates rises are coming, we've known that for some time. But Janet Yellen won't say when. Speaking earlier today, the Fed

chief said rates would rise eventually and she admitted Friday's jobs report was disappointing.

[16:20:00] Now, the Dow dipped in mid-day trading but it later rallied to gain in impressive 113 points. And Paul La Monica is here to go through the

numbers with us. You know, it definitely was a Yellen bump. But I thought, and was so fascinated by -- it was she didn't say, not what she said that

rallied these markets.

PAUL R. LA MONICA, CNN MONEY, CORRESPONDENT: Yes, I think, Paula, that everyone was excited and happy to hear that Yellen backtracked a little bit

from talking about how imminent a rate hike might be. A lot of people were worried the next meeting, which is next week, could be when the Fed will

raise rates. I think the jobs report really took that off the table. Obviously, we have the Brexit vote, as well. That is something that clearly

is going the weigh on the Fed's mind, as well.

NEWTON: Psychologically, were kind of getting close to the 18,000 level on the DOW, as well.

LA MONICA: Yes, 18,000 for the DOW. Over 2100 on the S&P, and were even getting close to 5000 for the NASDAQ, so that troika of milestones all in

sight right now.

NEWTON: Paul, you know, the oil trade is something to pay attention to, because it's moved the markets so much. Oil again on the upside today.

LA MONICA: Yes, Oil getting back near $50 a barrel. It's amazing to think because it wasn't that long ago everyone doing the reverse "price is right"

and trying to go as low as they possibly could. Oils going to hit 20, 15, 10. How low is it going to go? And now were back at 50. Part of it is

supply disruptions, but I think that there's a growing recognition that China's economy isn't as bad as everyone thought it would be, and they are

going to continue to consume oil. And so is the U.S., of course.

NEWTON: they are definitely far siding it to 60, $65 for next year. Paul, thanks, as always. Going to be a long week. Especially before Yellen

speaks. So thanks again, Paul.

BuzzFeed is scrapping an advertising deal with the Republican Party over Donald Trump's recent comments. Now, the website said Trump's policies

could threaten the freedoms of its employees and it won't allow ads supporting him. Now an internal memo, BuzzFeed founder and CEO, Jonah

Peretti, wrote, "We don't run cigarette ads because they are hazardous to our health and we won't accept Trump ads for the exact same reason." CNN

Money's Senior media correspondent is Brian Seltzer in the studio with me. OK, Brian, this is kind of an easy PR stunt, if we were going to be

uncharitable. If we were going to be charitable, let's say, it's a moral stand. I mean at this point, do we look at it in the business context?

BRIAN SELTZER, CNN MONEY, SENIOR MEDIA CORRESPONDENT: Certainly, BuzzFeed said it's a moral stand. They're willing to lose probably about $1 million

on this ad deal in order to not have Trump for president ads on this site. It is a lie in some ways of BuzzFeed's editorial stance. The site is a

strongly, very skeptical of Trump's campaign ever since the beginning. I would say at times they are downright adversarial. There's been times when

reporters have not been allowed to go to Trump events because they haven't gotten press credentials. So there's no love lost between BuzzFeed and

Trump even before today. But back in April, BuzzFeed did agree to take on ads from the Republican National Committee. They agreed to this ad

commitment and only today they severed it. The RNC says to me, we were not planning on advertising on BuzzFeed anyway. They say we're just reserving

the space just in case, but I know a lot of people don't believe that.

NEWTON: Convenient. You know, Brian, in fact, the head of BuzzFeed called him in an earlier memo, we reported, a racist.

SELTZER: That's right. That's what the editor in chief of BuzzFeed said last December. Now today, the editor in chief of BuzzFeed, Ben Smith, is

saying this decision by the business side won't affect the newsroom. The reality is they're kind of already in line when it comes to Trump. You

think about BuzzFeed's audience, younger people, and I would say sometimes left leaning. Perhaps this actually is a positive for BuzzFeed. It

positions the site as being more anti-Trump than it already is.

NEWTON: Brian, I'm going to put you on the spot for a little bit. For you and I who are used to being, like we're trying to be as objective as we can

be, how uncomfortable do you think this makes the industry in general that we have BuzzFeed just saying, look, we don't want him. We don't want him

anywhere near us. We won't advertise for him.

SELTZER: It does to some degree, put pressure on other media companies to at least consider the same sort of stance. I don't think others will.

Whether it's big television networks or other big websites. After all, most big networks, most big media outlets expect political ads, and look forward

to political advertising season, because of the millions of dollars that come in.

However, everything about Donald Trump is uncomfortable for media companies. Everything about Donald Trump is uncomfortable for journalists.

Both in the United States and around the world. He's such an unusual candidate. And some ways, that is fascinating and exciting to cover. In

other ways, he's very difficult to cover. He's very hard to fact check, he's very hard to keep up with. There's a lot of things about Trump

uncomfortable. Beginning with the stance against press freedoms. His attacks against journalists and a suggestion that libel laws libel laws

should be loosened. So that's some of what BuzzFeed is citing here, by saying they are not going to take his advertising going forward in the next

4 to 5 months.

NEWTON: And interesting, obviously, in parallel with BuzzFeed, saying we're going to be traditional journalists here, we are not a click bait. They

have a new, you know, whole new strategy on the table. Brian, an issue will continue to follow and I'm sure it'll be controversial.

SELTZER: We'll see if others follow.

NEWTON: Yes, interesting, thanks Brian.

SELTZER: Thanks.

NEWTON: Meantime, America's top banker says he is increasingly alarmed by the rhetoric of the election season and he's urging voters to think for

themselves. JPMorgan CEO, Jamie Dimon, spoke to Poppy Harlow.

[16:25:00] In an exclusive interview telling he told her that the American people are becoming manipulated.

(BEGIN VIDEOTAPE)

JAMIE DIMON, CEO JPMORGAN: We've become more knee jerk. We've turned principles and ideology, and once this ideology, your feet are stuck in

cement. You can't move anymore. You can barely breathe and then you just be angry. So, if you watch FOX, and go home at night and yes, they're right

those terrible -- or go home and watch MSNBC, they're just jazzing you up. You're just being manipulated. Learn to think for yourself about what the

issues are, what the potential solutions are. What the unintended consequences are of policy issues. Because it's very easy to say, we'll do

this. And very often it's the opposite effect.

POPPY HARLOW, CNN ANCHOR AND CORRESPONDENT: You think the American public is manipulated in a sense?

DIMON: We've wired ourselves to be jazzed up by -- I always say in management, don't let people jazz you up and get you angry. You're just

being manipulated when that happens.

HARLOW: Have you seen this much anger from the public at the financial sector and just big corporations in general, and how do you think it

manifests itself? What has this become?

DIMON: I don't know. I'm not an expert in that. I read a lot of history and, yes, we have seen it many times before. You know, sometimes it's

justified. Sometimes it is not. Sometimes it is finger pointing and sometimes it's blaming everybody for the acts of one. I don't know how it

manifests itself. I hope the next president focuses on the things that make America better. I've already talked about -- we have it so good, but we

should acknowledge the flaws. I think the Democrats are acknowledged that Republicans are terribly afraid of pork, you know, bad spending, bridges to

nowhere for good reason. I think the Republicans should acknowledge that we desperately need infrastructure. Desperately, airports, bridges, tunnels,

roads, hospitals, and then we should roll up our sleeves and get to work and figure out the way to do it well. So I think if we do these things

right, America will be booming.

HARLOW: Donald Trump talked repeatedly about a 35 percent tariff on goods imported to this country from Mexico and China. Mega Wittman, CEO of HP,

said that will throw the country into a massive recession. Is she, right?

DIMON: Donald Trump also will say that I'm a negotiator. I want a better deal. So I don't know if he means 35 percent or not. I think a well-

structured trade agreements are good for America. Every now and then they are structured in a way that hurts certain people. I do think there are

legitimate issues to say, it's not working for everybody. But it works in general. So I'm in generally of favor of trade properly done.

HARLOW: As you travel around this country, as you travel around the world and talk to global business leaders, heads of state, what do they say to

you about the state of American politics and this election?

DIMON: They first of all they look at Americans should understand they look at the American president as the leader of the free world. They really do.

HARLOW: Yes.

DIMON: If I traveled around ten years ago, there's a lot of angry at us for different reasons. The ugly American type of thing. They want good American

leadership. That's what they want. So they're closely watching the election. Remember, their politics have been complicated like this for a

long time. So they're trying to study it and understand it. But they also have some comfort that America is a great quote is, America after

exhausting the possibilities does the right thing. So I think that hopefully that's the case.

HARLOW: You're hopeful that they'll find comfort, there's no shock at what we're seeing right now?

DIMON: They're watching like we are.

(END VIDEOTAPE)

NEWTON: the head of Burberry is paying the price for the company's poor performance. The CEO taking a huge salary cut ahead of what could be an

angry shareholders' meeting.

(COMMERCIAL BREAK)

[16:30:55] NEWTON: Hello I'm Paula Newton. Coming up in the next half hour of QUEST MEANS BUSINESS, the CEO of Lufthansa tells us why flying is still

the safest way to travel. And leadership lessons from a world famous conductor. I'll speak with Benjamin Zander at Carnegie Hall. Now, before

that, these are the top news head loins we're following this hour on CNN.

Police in Ukraine have arrested a Frenchman who was allegedly planning a string of terrorist attacks around this week's European football

championships in France. Police say the suspect wanted to protest against the spread of Islam and had obtained Kalashnikovs antitank missiles and

other explosives. Now, the head of Ukraine state security service, says the suspect had multiple targets.

(BEGIN VIDEO CLIP)

VASILY GRITSAK, HEAD, SECURITY SERVICE OF UKRAINE (through translator): The targets of the attack were, although it sounds strange, it is true, and it

was documented, a Muslin mosque, a Jewish synagogue, a French tax office, highway patrol points and many other places. As I said, 15 terrorist

attacks were planned.

(END VIDEO CLIP)

NEWTON: A refugee aid groups say civilian attempting to flee the Iraqi city of Falluja are being targeted by ISIS militants. Now as Iraqi forces

continue to push onto the city's outskirts. These are some of the people who have managed to escape. Estimated 50,000 others remain trapped in the

center of Fallujah.

The funeral of Muhammad Ali will be held this Friday at a 22,000 seat arena in his hometown of Louisville, Kentucky. On Thursday, a Muslin prayer

service will be held at Freedom Hall in the city. Both services will be open to the public. The legendary boxer died on Friday night. He was 74.

The CEO of Burberry taking a big pay cut following a disappointing year for the company. Christopher Bailey is also the chief creative officer for the

luxury retailer. Last year Bailey was paid nearly $11 million in salary and bonuses. But now his bonuses cut to zero. So he'll have to muddle through

on less than $3 million in pay. Joining me now in New York is Jennifer Ryan-Gold. She's editor at large for "Fortune." I mean, obviously, it is

not the number, the total sum we are looking at here. I mean, it made quite a splash a few years ago, when they appointed Mr. Bailey to be both

creative director and the CEO. I mean, unprecedented in a fashion house that large. When's gone wrong here?

JENNIFER REINGOLD, EDITOR-AT-LARGE, FORTUNE: I'll say it's not entirely Mr. Bailey's fault. Because the entire luxury market h what as seen a terrible

couple of years and Burberry in a way the s the top of that. They have an enormous presence in Asia and although economic issues in Asia have

affected it. As well as the fact they're very focused in Hong Kong and Chinese tourists are no longer as able to go to Hong Kong to do the

shopping. Which has really just disproportionately affected Burberry. Having said that, it is still an important thing to do if you're the CEO of

a company, you have the make your numbers. And you have to respond to the trends. You can't just say, when things are going great, the credit goes to

you and when things go poorly, it is somebody else's fault.

NEWTON: In terms of them looking at what the restructuring, it is an iconic brand, luxury brand, which is pinning a lot hopes on Asia. They say they're

going to restructure now, all out of the cost cuts coming down the way. There actually going to streamline the product line. Do you think these

luxury brands are prepared for what they have been seeing in Asia? Because they've penned so many hopes on them.

REINGOLD: I would have to say, no, not exactly. I would say that there was a moment, almost a gold rush, where you had no choice but to run and jump

and get into the market as quickly as you can. And Burberry was one of the first and has built out quickly and very, very effectively. But you know,

what goes up comes down.

[16:35:00] And I think at this point, they're going to really just press on the cost side of things. And try I to figure out a way to get other people,

maybe not Asians as much, to really, really start buying on another level. Europe has also been a problem for Burberry, because of the terrorist

attacks and obviously, some of the economic confusion.

Yes, a lot of head winds there for them. I mean, if you look at the retail trend, this is an incredibly fragile situation now in retail. And doesn't

matter at the bottom of the scale or the top end. In terms of the trends, is it still being wholly and solely impacted by trying to navigate that

online distribution? Or do you think that, you know, department stores, malls, those kinds of flagship stores that they have of major cities, I

mean, how are they navigating this? Because retail sales have been quite soft all over the world.

REINGOLD: What we've seen at "Fortune" is that there is a perfect storm happening for retail. As you said, Paula, the high end and the low and.

It's very much in the middle. There's one issue is product. People are not happy with what's out there. Another issue is how millennials like to buy.

They like experiences, in some ways, more than they like clothes and cars. So they're not buying stuff that much. And besides that, there's an

incredible squeeze in the middle class, particularly in the United States and some of the western markets because of rising income inequality. You

are starting to see the standard brands really suffering and this we're seeing across the board.

NEWTON: You've really outlined some really good points there. In the midst of that, I hate to say this, but do you think in terms of consolidation

that some of the luxury brands could just fall by the wayside or become in the future a shell of former selves.

REINGOLD: I think the entire retail industry is undergoing a tremendous contraction right now. I do not think there will be nearly as many

survivors as the names that we are used to hearing and seeing today. I really don't think you're wrong about that.

NEWTON: Interesting. Jennifer, always good to have you here and retail being a large part of driving those economies. Appreciate it, thanks.

REINGOLD: Thank you.

NEWTON: Lufthansa CEO says the world is creating new powerhouses and Europeans must stick together to stay competitive. Garson Spohr spoke with

Richard Quest at IATA's annual meeting in Dublin. He also insisted Lufthansa could weather an U.K. exit from EU if Britain votes to leave.

(BEGIN VIDEOTAPE)

CARSTEN SPOHR, CEO, LUFTHANSA: As the head of Lufthansa, I'm not that worried. Because I think our industry's prepared to work across borders

around the world. So even if things change in the U.K. it wouldn't affect the industry right away. It truly would slow down growth in Europe, that

would affect our business. But I'm more worried as a European, because I think it's a wrong way the go for Europe. The world is as we all know

creating new powerhouses in Asia, the U.S., obviously is recovering. I think Europe needs more unity to make the best out of the talents and

substance we have in Europe and the U.K. leaving the EU surely wouldn't help in this regard.

QUEST: And this is as a European. But at the same time, there are so many in Europe -- not asking you as a CEO now. As a European, that believe

Europe has gone in the wrong direction. Or, is in danger of the wrong direction.

SPOHR: Well, I'm a very convinced European. I think the strength of Europe, the diversity, different cultures, different histories, makes things

difficult and complex, but the same time the unique upside of Europe. So I think Europeans need to be more positive about their uniqueness rather than

about the complexities we have here.

QUEST: This question of airline security, which is now front and center. We don't know the facts of completely of EgyptAir 804, but there are -- we had

MetroJet, we have Egypt 804, you've had Brussels. How concerned are you now that more needs to be done for aviation security?

SPOHR: Well, as terrible as all these accidents and events were, we should always remember one thing. This industry, flying, still is the safest way

of transport. As was mentioned in this IATA conference today, there's now a safety record of 1 to 3.1 million flights. That's unbeaten by any other

industry. And that's also I think a fact of this matter. But you're right. We have been very successful as an industry to continuously improve safety

and security.

I think with the world becoming a less secure place, there's even more efforts to be done. And in the end a lot has to do with intelligence and

sharing of intelligence, between countries, but also between airlines. And I think conference like the one we are attending here today is another

platform to make sure that the sharing of intelligence is a key issue for safety and security.

QUEST: You don't perceive a crisis in this area?

[16:40:00] SPOHR: No, I wouldn't go that far. And you see from the growth of our industry, it hasn't really affected growth. We have been seeing a

solid 6 percent growth last year. I think we are seeing similar this year. There's not that many other industries around the world which grow at 6

percent.

(END VIDEOTAPE)

NEWTON: The conductor of an orchestra doesn't make a sound. He depends on the ability to make other people powerful. That's a quote of Benjamin

Zander who's leading in orchestra of students in two sold-out shows at Carnegie Hall. He'll tell us what he's learned about leadership from a

career in music. That's next.

(COMMERCIAL BREAK)

NEWTON: A few hours from now, distinguish conductor, Benjamin Zander, will take the stage at one of the most famous classical venues in the world.

Just a few blocks from here, Carnegie Hall. More than 12,000 people requested tickets to join his Boston Youth Philharmonic Orchestra for a

night of Stravinsky, Debussy, and Tchaikovsky. Zander made a name, not just leading the band, but also in his inspiring speeches before their concerts.

His mission is simple, he tells me. To teach leadership through classical music. I went the meet him as he prepared for tonight's performance.

(BEGIN VIDEOTAPE)

BENJAMIN ZANDER, CONDUCTOR: Music has a particular power. It's irresistible. There is nobody who doesn't respond to music of one kind of

another. And when we started off, we thought that the conductor was a leader up here and the orchestra was down here. And the conductor dominates

the orchestra. That's the former view notion of leadership. What I discovered was that the conductor doesn't make a sound. So he gets his

power from the power that he gives and gets from other people. So my interest is how are they doing? If their eyes are shining, then I know that

they're engaged fully in this process. If they're not shining, I ask this question. Who am I being that my players' eyes are not shining? We can do

that with our children. We can that with our colleagues, with our workers.

NEWTON: We can take the leadership principles, but why music?

ZANDER: Well, classical music has a particular power, a particular pathway to our soul that other music doesn't necessarily have. Because it lifts us

up like that. And that feeling of lift, that -- there's a theme in the Tchaikovsky -- it's loving theme. I ask, is there anybody who doesn't

respond to that?

NEWTON: Whenever you speak, you talk about the vision thing and when you apply it to music you talk about certainly the impulse. And when you don't

hear the impulse --

ZANDER: Right.

NEWTON: You can see the entire piece.

ZANDER: Stop thinking about every single note along the way and start thinking about the long, long line.

NEWTON: What do you mean by that? Does that apply to leadership?

[16:45:15] ZANDER: Yes, absolutely. The vision is -- look, most people, in their daily lives think about the individual moments. They think about this

minute or that minute or this quarter or that quarter if they're in business. The visionary thinks about the long line. So the beauty of music

is -- a classical music -- is it sets up the enormous lines which don't fall. They're constantly -- but this is, ah, about lifting the spirit and

see and raising the eyes so you're looking into the distance.

NEWTON: We talk about the current passion and you have many. The youth orchestra playing at Carnegie Hall. You say they're not children. They're

not accomplished musicians. They are leaders. How? Why are they leaders?

ZANDER: Watching the kids play with their passion and their complete bodily engagement, their eyes, their energies, that's a very a very inspiring

thing. Because in most things in life, it is a competition. You're winning a game. You're competing with people to get into college. And, you know,

there's all that fear and anxiety and pressure that exists around competition. This is not about competition. There's no winning here. It's

all about contribution. About giving away the gift that this music speaks about. And giving it to as many people as we possibly can find.

(END VIDEOTAPE)

NEWTON: Such a treat earlier today and really such a unique perspective on leadership that can apply to anything, including business. They are touring

through Spain and next few weeks. Believe me, if you can see them, it's worth every minute.

Meantime, T-Mobile wants its customers to have a stake in the company, literally. This cell phone giant is giving away stock. Yes. T-Mobile CEO

will be live with me in the studio next to explain.

(COMMERCIAL BREAK)

NEWTON: Well, this is a new one. It's surprised me. T-Mobile is offering customers in the United States the chance to be co-owners of the company.

The cell phone carrier is giving away one share of stock to each customer. Allowing them the chance to earn more. Now T-Mobile says it is the first

publicly traded company to make such a move. Shares of T-Mobile closed down more than 1.25%. Now priced at $43 a share. John J. Legere, the CEO of T-

Mobile joins us live here live in the studio. Look, a lot of people will say, John, look, this is a stunt. What does it mean? Why are you doing

this?

JOHN LEGERE, CEO, T-MOBILE U.S.: Yes. Listen, this is Un-carrier 11. We have done ten of these Un-carrier moves before and in that period of time

we have grown from 33 million to 66 million customers. We have the most satisfied customers in the space.

[16:50:00] And, you know, it's been a period of time where we're solving pain points. Pain point for this time is loyalty programs are broken. You

got one of them. We're just saying thank you. We are giving stock to each customer. To each new customer and then letting customers refer and get

another share of stock. Second thing we announced is called T-Mobile Tuesdays. It is an app, on your phone.

NEWTON: You are going to give away free things and includes pizza and a lot of others things. But look, how do you explain this return on investment on

this kind of a promotion to your investors? I mean, despite having the one stock that people will have, they'll have a stock worth $43 on any given

day to your subscriber. How do you explain it?

LEGERE: Which by the way is a stock that at the start of this period opened at $15 a share. It is now $43 a share. So I think investors are quite

happy. It's baked into our financial guidance. Which is also expanding margins and growing. The fastest growing revenue in the wireless industry.

So our shareholders are pretty pleased. Today is a day, though, where customers are saying, hey, I like this. Investors may temporarily be

saying, how do you do this? How are you doing this? But for today, this is simply about telling our customers, thank you.

NEWTON: You have a lot to thank them for in the sense they switched if droves.

LEGERE: Yes.

NEWTON: I mean, many people are very blunt. Even your competitors are blunt. You are taking business away from them. John, you know right now

that makes you a takeover target. Where do you think all of that is going?

Well first of all, we've been taking customers from all three other wireless carriers for three years. This isn't a new start. Second thing is

takeover question, it really is about that the industry is structured in some change artificial way. What customers want now is they want

everybody's infrastructure wireless, cable, fixed to get together and figure out how to let people access what they want, what they want to see

and do on mobile devices whenever they want. So that forces the industry to think about, hey, how could certain companies get together and do that

better? For me, my job is to create a very strong standalone company. We are by far the strongest wireless company. But also be open minded over the

coming years to things that might happen to bring us together, partner, ally, merge with others to do a better job.

NEWTON: That's a bit of a headline you're giving me, John. Your saying consolidation will be inevitable here.

LEGERE: Consolidation is inevitable in the wireless industry. Consolidation is inevitable amongst cable and wireless players, as well as the adjacent

industries.

NEWTON: OK, listen, we all love to hate our providers. You know that, right?

LEGERE: Yes, not us.

NEWTON: Do you think -- well, I mean the surveys are good, but I think, you know, it is like, to be blunt here, do I want to hang myself or do I want

to shoot myself. Right? Come on. You know how much, you know, it's infuriating.

LEGERE: That is -- are you a T-Mobile customer?

What are you doing -- not going to tell you. What are you doing to take that frustration away?

LEGERE: That's it. You just described entire Un-carrier revolution. People hated their wireless providers and wireless services is one of the most

important things people have in their lives. So what we became about was solving the pain points you hate. Get rid of your contracts. Have

simplified pricing. International data framing. Now been John free streaming of video, free music streaming. Now things like being thanked,

having a loyalty program that tells people, I work for you.

Right now, we are making the customers be the boss. That's what's changing wireless. Right now, 71 percent of my customers say that they're willing to

recommend us to somebody else and 70 percent of customers say a personal recommendation is most important to them. Yes, that's exactly what I'm

doing and using to grow our business.

NEWTON: We'll see with one piece of stock goes. But your competitors even say up to 100 shares recommending others. Even your competitors say what

you have done in last three years in this market is extraordinary. Which is why they're looking at you. And please come back. If any of that action

happens just talk to us.

LEGERE: I will.

NEWTON: Appreciate it, thanks so much.

Now the fall in oil prices will has led to a surge in profits for airlines. Now the carriers are pumping the extra cash become into their fleets. For

United, that means an upgrade for the passengers at the front of the plane. The new business class is called Polaris. The focus is on giving fliers a

good night's sleep. It includes a pod that fully recline to create a 6 1/2- foot bed. United CEO, Oscar Munoz, spoke with Richard and told him Polaris was just the beginning.

(BEGIN VIDEOTAPE)

OSCAR MUNOZ, CEO, UNITED AIRLINES: We have an incredible product you will get a chance to see and we're already getting rave reviews. But as I said

time and time again, it's way beyond the product. It's about the human quality and the human connection and human carrying that our team, our

family United has been known to express and has beginning to express more fully. And it's that excitement and energy that's really going do take this

Polaris from lounge to landing from a product perspective even to greater heights. Because of the fact of our flight attendants, our pilots, our

ground crews, our entire United family is there to support you as the customer.

QUEST: Oscar, I'm here at the IATA annual general meeting and the big talking point here, of course, is how airlines are once again making money.

How there's a certain element of sustainability in the profitability. You had a couple of very good quarters and a rocky quarter. Do you believe that

there has been a what paradigm shift for your profitability?

[16:55:00] MUNOZ: Well, listen. I have been around this industry for a long time as a lot of us and I really do believe that. I think there's the focus

on, not only the profitability as you say, but you see not only us, but the entire airline industry reinvesting back in the business, reinvesting back

in the product in various ways. And a healthy sign that we as business professionals understand that that investment is going to have a return on

it so, yes, I think we're really enjoying this and having been in other industries, having money is better than not having money, clearly.

QUEST: You must be tired of people asking you about your health. But I would be remiss if I did not say, how are you finding it being back full

throttle, particularly in one of the most stressful industries, one of the most stressful times, Oscar?

MUNOZ: Yes, well, I tell you, it's great to be back. I feel terrific. And I'm constantly energized by the spirit and the commitment and the

professionalism of our employees and my United family. And truly, truly that's what keeps me going.

(END VIDEOTAPE)

NEWTON: We'll be right back with more of QUEST MEANS BUSINESS in just a moment.

(COMMERCIAL BREAK)

Time for one more quick look at the markets. Interest rates rises are coming. But Janet Yellen won't say when. Today the Fed chief said rates

would rise gradually and she admitted Friday's jobs report was disappointing. The DOW dipped in mid-day trading, but it later rallied to a

gain of triple digit gain of 113 points. That's it for QUEST MEANS BUSINESS. I'm Paula Newton in New York. I'll see you right here tomorrow.

END