Return to Transcripts main page


Theresa May Takes Over as British Prime Minister; Boris Johnson is New Foreign Secretary; Brady: May is the Right Woman to Lead U.K. Out of EU; Cameron Urges U.K. to Stay Close to EU; Rallying Markets Ready for Major IPO; Messaging App "Line" to Go Public; Retailers Profiting From Pokemon Go; David Cameron's Legacy; Trump's VP Search Enters Final Phase; Venezuelan Oil Output to Drop 10 Percent; Venezuela Drastically Short of Medical Supplies

Aired July 13, 2016 - 16:00:00   ET


[16:00:00] ZAIN ASHER, CNN ANCHOR: Tonight it is official. Theresa May has now moved into number 10 Downing Street and she's wasted absolutely no

time in appointing the ministers who will help Britain move out of the European Union.

Good evening from Atlanta. I'm Zain Asher. We will now know who will fill Theresa May's top cabinet posts. Let me break down some of the names for

you. She's now named David Davis Secretary of State for exiting the EU or the so-called Brexit secretary. Phillip Hammond was appointed the

chancellor of the exchequer or finance minister. He's replaces George Osborne who's resigned from government. Boris Johnson replaced Hammond as

Foreign Secretary. The former London Mayor was one of the leading voices of the leave campaign. He wanted to push Britain to leave the EU. Theresa

May is spending her first night at number 10 Downing Street after assuming the reins of a country very much in turmoil. In the British tradition the

Queen formally asked May to form a new government. May now had a pretty daunting task ahead of her. Her decisions, how of course she handles

leaving the EU, the Brexit, could reverberate for decades to come.


THERESA MAY, BRITISH PRIME MINISTER: We're living through an important moment in our country's history. Following the referendum, we face a time

of great national change and I know because we're Great Britain that we will rise to the challenge. As we leave the European Union we will forge a

bold new positive role for ourselves in the world. And we'll make Britain a country that works not for a privileged few but for every one of us.


ASHER: May is taking over at a historic moment in time. And even on her first day her to do list is already a mile-long. Her first and most

obvious job is to negotiate Britain's exit from the EU. She will need to secure the best deal that maintains the U.K.'s influence in the region.

She'll also attempt to hold U.K. together. Scotland could of course, hold another referendum to leave the U.K. And some in Northern Ireland are

threatening to use the Brexit as an excuse to push unification with Ireland. And May must also sure up the economy reassuring investors Brexit

will not trigger a recession in the U.K. CNN international diplomatic editor, Nic Robertson begins our coverage. He's joining us live outside

the Houses of Parliament. So Nic, let's talk about the cabinet positions, because Boris Johnson now being foreign secretary. I mean help us get

inside Theresa May's head. I mean, she must know this is quite a risky move because he is such a controversial figure.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: And he's really well- known around the world. And he could go knocking on doors all around the world. And he'll be taken in as somebody who's known to those governments.

This is a man who brings with him a lot of flamboyance, a lot of bluster. But who is also known as somebody who's got a relatively strong intellect.

But look, I mean I think, let's take a part, let's have a look at what Theresa May's done here. She appointed Philip Hammond to the top job, if

you will, the treasury, chancellor of the exchequer. Then Boris Johnson gets the next job. Now, Philip Hammond was a remainer. Boris Johnson was

a leaver. Then she fills her own job with Angela Rudd. She herself was a remainer.

So what you can see Theresa May is doing here is sort of trying to unify the party. Bring together those separate elements. Give Boris Johnson a

prime role in the government because that's what a lot of people who voted to leave the country voted for. They saw Boris Johnson campaigning for

that. They believed in him and they supported that. And she's recognizing that Liam Fox, international trade, also someone who campaigned strongly

for the leave campaign.

David Davis, he will negotiate with the European governments for Britain exiting from the European Union. Another person who was part of the leave

campaign. u can see here she has given some of the key responsibilities in terms of exiting the European Union, in terms of foreign policies, in terms

of international trade to keep people within the leave campaign. Because if she didn't, she would have been criticized, not just perhaps by some of

her own MPs, but by people around the country. People would have felt cheated that what they voted for in the referendum wasn't being realized.

So she in a swoop she answers those critics. And on the eve of her taking up office, that's what a lot of people around the country were expressing

concern about. That people like Boris Johnson they thought weren't going to be in the government. Now he is. She's unifying, not only her party in

these appointments, but she's trying to bring on board, the country, the electorate, if you will, and as well talk about a more compassionate


[16:05:00] ASHER: But Nic, people are certainly surprised about this Boris Johnson appointment. Some people might ask, listen, is she more concerned

about giving the Brexitiers a voice other than who was best for what job.

ROBERTSON: Her friends and allies who said this is a person who understands her responsibilities, who keeps a good on her word. Her word

was Brexit means Brexit. That there will be no new election. So she's keeping good on her words here. She's putting in people who will follow

through on that mandate from the British people to leave the European Union. I think certainly there will be criticism. Of course, which ever

decisions she makes. Again, the people that know her do say to a person even those who have been very close in her campaign to become prime

minister, that she will pick the best people for the job. And she knows she has a lot of different issues to balance here.

She had a message for the Scotts. And at least a possibility of a second referendum on independence. There was a Scottish first minister around

here today essentially canvassing and campaigning here talking to different broadcasters. Her message, Theresa May's message was very clear. The bond

is between England and Scotland and Northern Ireland and Wales, is a very, very important bond. Something that she said is important to her. The

language that she used was very, very strong on that issue. So I think she's sending a clear message as well. Although she's had to do this in a

relatively short space of time, we understand the sort of person that she is. She gets into the details. She knows what she's doing. And the

country and her other MPs are taking it on faith at the moment. But she is certainly, certainly listening to what people have been saying around

Britain about the likes of Boris Johnson falling by the wayside and a remain person leader could become prime minister. That and coming from

other criticisms. So perhaps in that regard her room for maneuver wasn't so vast, Zain.

ASHER: Right, Nic Robertson live for us there. Appreciate it, thank you so much.

Earlier I spoke with Graham Brady, a conservative member of Parliament and the chairman of the 1922 Committee, a group of conservative MPs,

instrumental in the picking of the conservative leader. He told me he's pleased that things are moving at such a quick pace.


GRAHAM BRADY, CHAIRMAN, 1922 COMMITTEE: I certainly wouldn't have predicted it a week ago. But it's been fairly clear the last few days

what's going to happen. The British constitution has got many flaws. But it is quite good at dealing with things quickly. It's good at being

corresponsive. And I think we've seen it really in its element in this change your prime minister.

ASHER: So you yourself were a Brexit supporter. So how comfortable are you that Theresa May was in fact, a remainer.

BRADY: I'm entirely comfortable with it. I've known Teresa for a long time. We entered the House of Commons together on the same time in 1997.

I think she is a very serious, very capable woman. And I also think that she has absolute integrity. And when she says that we are committed to

fulfilling the commitment that we made to see through the outcome of the referendum and to making sure that Brexit happens. And making sure that it

is a great success. Then I feel very confident that Theresa May is the right woman to see that through.

ASHER: So one question about the leadership change. I'm in the U.S. and we've seen this anti-establishment wave pretty much across the word, from

Donald Trump to Bernie Sanders to of course, Jeremy Corbin. The Brexit vote in itself was anti-establishment. Do you think that some members of

the Conservative Party will be disappointed that they didn't get to have their democratic say?

BRADY: I'm sure some of the Conservative Party will be disappointed by that. But also I think Conservative Party members in this country are

generally really very responsible, very steady, very serious people. And they can see that there is a real need for stability. There is a real need

for control. And following the referendum when David Cameron announced immediately that he wows be leaving office. There was a danger that that

left a period of drift and possibly a time that would be damaging to the economy as well. I think most Conservative Party members can see what

we've been able to achieve is an important change done quickly, done efficiently.

ASHER: Theresa May has a huge task when it comes to negotiating Brexit. For somebody who hasn't held a major economic or foreign policy position

within government, just explain to our viewers. How is the conservative party helping her prepare for such a mammoth undertaking?

[16:10:06] BRADY: well, Theresa now having been to the palace and become prime minister officially. She will immediately into the task of

constructing a new government. She of course has access to many people both within Parliament who will become members of the government, taking on

those big economic portfolios. But also a huge amount of advice and assistance from outside. So I think the fact that we've got somebody who

is clearly serious, very competent, highly respected is steering. Being on the bridge of the ship, as you like. That is, I think a very good thing.


ASHER: The markets have seen plenty of drama in the three weeks since that Brexit vote. Since a positive trade on June 23 when the referendum voting

was still under way. The FTSE and the MSCI emerging markets index have both rallied. But the German DAX has slipped more than 3 percent. And the

British pound is down more than 9 percent but it has been rallying a bit recently. Morgan Stanley's Chief Global Strategist, Ruchir Sharma, has $40

billion in assets under management. He joins us live now from our London Bureau. So Rashida, thank you so much for being with us. We've talked a

lot in the global media about the losers of the Brexit vote. But who do you think will be the winners?

RUCHIR SHARMA, CHIEF GLOBAL STRATEGIST, MORGAN STANLEY: It's hard to say who the direct winners will be. But here's what's happening, which is that

I think financial markets across the world are celebrating the fact that monetary policy across the world is likely to remain looser for longer.

And that's really sort of up ending up being the big winner as ironically of the Brexit vote. Which is that the Brexit vote in some ways, as I've

argued, has been a vote really against these themes of too much income and inequality and the growing backlash against immigration. But ironically

the people who are benefiting the most just now are the owners of stocks and bonds across the world, because those prices have rallied significantly

after the Brexit vote. And those happen to be very rich people who own the bulk of those assets.

ASHER: So this will make emerging market assets more attractive then, in your opinion.

SHARMA: Yes, it gives them break. As you know, emerging market assets have been under a lot of pressure. And a part of that pressure has been

the fear that the Feds are going to increase interest rates and the liquidity is going to be withdrawn from some of those markets. And I think

that the fact that now it seems that the Fed is really sort of out of play this year is going to help emerging markets for a while.

ASHER: But what will it mean for emerging markets who rely on the U.K. for trade for example. What will this Brexit vote mean for them?

SHARMA: Well you know, U.K. has really become a very marginal player. I think the whole of Europe and U.K. have really been very marginal

contributors to global growth. So therefore I think the impact of the global economy of Britain possibly even entering a recession is extremely

small. The world today really is a G-2 world. Which is that two economies really matter for the global economy are U.S. and China. That's how the

world has changed. U.K. and Europe have hardly contributed to global growth this decade. So therefore anything that happens to them doesn't

really have a major impact on the rest of the world.

ASHER: And given the Brexit vote, Ruchir, you think were in this climate of de-globalization as it were. And if we are what will that mean for the


SHARMA: That's something I cover a lot in my new book. You know, the fact that we are in a phase of de-globalization. If you look at the entire

world today you're seeing a rise in protectionist measures across the world in the so-called AC area, which is after the crisis. And then we also have

a collapse in global capital flows, and even migrant flows have peaked. The number of people moving from the emerging world or the developed world

that flow has peaked and in fact now is ebbing. So I think that were in a world where it sort of feeds on itself. Which is that we've seen de-

globalization partly because this is the weakest economic recovery and postwar history. But because we have seen a backlash take place against

trade and migrants that's likely to lead to possibly even lower growth in some of these countries, but as backlash is building. So that's the sort

of vicious feedback loop in which some countries are likely to get caught and affect the global economy.

ASHER: So de-globalization thanks to the antiestablishment movement that has been sweeping the world. Ruchir Sharma, we have to leave it there,

thank so much for being well us, appreciate that.

SHARMA: Thank you.

ASHER: And in the final Prime Minister's questions, David Cameron urged Theresa May to stay close to the European Union even as European leaders

want Britain to begin the process of separation. Earlier I spoke to Ingeborg Grassle, a member of the European Parliament for Germany and asked

her what Theresa May should know about negotiating with Angela Merkel.

[16:15:12] (BEGIN VIDEOTAPE)

INGEBORG GRASSLE, MEMBER OF THE EUROPEAN PARLIAMENT, CHRISTIAN DEMOCRATS: You know, I think they are quite similar. They're very calm. They are not

worrying it all. I think they are bound to reside. They want to come to good results Angela Merkel is interested in to let's survive the partner.

That's what we need, we want to have Great Britain as close as possible to the European Union. And I think Angela Merkel knows that for that Mrs. May

need some successes.

ASHER: That's interesting because David Cameron said something very, very similar. He also told Theresa May that the U.K. should try and be close to

the European Union for all the benefits of trade, cooperation and security. In your opinion is all of that really possible without freedom of movement.

Angela Merkel herself has said that there will be no cherry picking in all of this.

GRASSLE: This will not be possible without freedom of movement. You know, we have tools for everything and there are four tools U.K. can choose. I

wonder if we can invent a fifth. But you know, I think the U.K. should start an honest debate on immigration. We see there are roundabout 6

million foreigners in Great Britain, four from the Commonwealth and 2 million from the European Union. It is not fair to blame the European

Union for everything that's going wrong in the U.K.

And this is a huge task Mrs. May will have to come to a more honest and more fair perspective also for her own citizens. And I'm very unhappy

about the Brexit. Germans are very unhappy about the Brexit. We want to have good relations with the U.K., but this cannot mean that we throw away

what we have, the internal market. And we cannot organize the next wave of Brexit's, exits, Chexits, whatever, the Dutch. You know we need to keep

the European Union together.

ASHER: You mention that Germans are very unhappy about the Brexit. Germany has elections next year. Do you think that the Brexit vote will

impact whether or not Angela Merkel stays in power?

GRASSLE: I think that the values that Angela Merkel has will be very useful for Great Britain but as well for Germany. The reputation she has

with the German voters. It has improved since the Brexit. We see that it's the utmost importance to keep the European Union together and

everybody counts on her. All the responsibility is now on her shoulders. That's why I think this will help her regain a very strong position within

the German voters.

ASHER: and one thing that Angela Merkel has to figure out is really how a Brexit is going to impact the EU economy as a whole. There are a number of

European companies that have great exposure to the U.K., German companies as well, to be fair. Do you think those companies should have a say in how

Brexit negotiations are handled? Because it will impact them.

GRASSLE: Of course, these companies will do a lot of lobby work. German companies have over 300,000 working places in the U.K. The U.K. for us is

a very important trading partner, but U.K. is spending a lot of Germany as well. That's why it has to be a relationship on mutual respect and also on

mutual utility.


ASHER: It's time for a quick break here on QUEST MEANS BUSINESS. As you can see behind me U.S. markets are trying to extend the record rally, and

they did ever so slightly. Worldwide markets also getting ready for what is expected to be the biggest tech IPO in two years. That's after the



[16:21:07] ASHER: Wall Street a late push to continue its record-setting rally. The Dow Jones struggled for most of the day but finished with a

gain of nearly 25 points, so pretty much flat. CNN's Paul La Monica joins us live now from New York. So Paul, what happened? Because yesterday we

saw these dramatic record-setting gains. And now we still get a record- setting gain as well but stocks lost momentum. What happened here?

PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Yes, I think too many investors are maybe taking a needed break before the flood of corporate

earnings begins tomorrow. We've got J.P. Morgan Chase. So that is going to be a key one to watch, Delta airlines also. And then there are a lot of

earnings next week. And I think that's really what investors are really going to be focused on. Brexit is amazingly a story that, I don't know if

you want to say it's tied up in a bow so to speak, but it is largely the concerns I think are now in the rearview mirror. Because at least we know

what happened and Theresa May is the Prime Minister already, which a lot of people didn't think was going to happen this quickly. So investors now

have to move onto their next obsession, which is going to be corporate earnings.

ASHER: Speaking of the next obsession, we did about five minutes ago I understand, get Yum Brands. What are investors going to be looking for as

a sort through the earnings, I understand there were some concerns about slow growth in China.

LA MONICA: Yes, that has been a concern for a while. There have been some food safety issues. Yum still now has plans to spin off the China

business. But China is starting to rebound. China sales were up in the most recent quarter and the company did report earnings that beat

forecasts. They raise their outlook as well. So now I think investors are going to be looking more closely at the domestic business. How are KFC,

Pizza Hut, and Taco Bell doing in the U.S.? There have been some concerns about a slow down there. Maybe, dare I say some brand confusion with KFC,

because I believe that last checked they had four different actors playing Colonel Sanders in their somewhat odd ad campaign lately. So that's going

to be something I think to watch. Can this new ad campaign revitalize KFC?

And something else to watch will of course be J.P. Morgan tomorrow when we get their earnings. Hopefully he will have you back on the show to discuss

that. Paul La Monica live for us there, thank you so much, appreciate it.

LA MONICA: Thank you.

Demand is expected to be strong for Japanese messaging app "Line" when it goes public in New York and Tokyo this week. It's expected to be the

largest tech IPO in two years. But questions remain about Line's music growth and whether he can use it IPO cash to expand outside of Asia.

Here's our Maggie Lake with more.


MAGGIE LAKE, CNN ANCHOR (voice-over): it's take off time for "Line," the most popular messaging service in Japan is going public in a deal worth

over $1 billion.

KATHLEEN SMITH, RENAISSANCE CAPITAL, IPO ETF MANAGER: The "Line" IPO will be the biggest IPO so far this year. And in terms of technology IPOs

"Line" will be the biggest one since the Ali Baba IPO of the fall 2014.

LAKE: demand from investors has been so great that Line was able to price at the top of its IPO range. Despite the uncertainty over Brexit and this

year's dearth of public offerings, investors appear ready to show some love to Line.

SMITH: Messaging apps are a fast growing industry. And I think that investors recognize that they can be popular in the U.S. and they can be

popular in many other countries. A lot of the interest is coming from retail investors in Japan and institutional investors here in the U.S.

LAKE: One big positive, Line are ready makes money from mobile games and animated stickers featuring its popular cartoon characters. But to really

boost profits Line wants users to order goods and services through its app. A goal that all messaging apps are working toward.

SHELLY PALMER, MANAGING DIRECTOR, LANDMARK/SHELLYPALMER: WHATSAPP, WeChat and Line have really good roadmaps as to how they can be this center of

your life. How you can get movie times or tickets. How you can order food. How you can speak to one another. How you can order an Uber without

leaving the messaging app. It's a really, really interesting approach to doing life electronically and it's taking shape nicely. And that's what I

think this IPOs about.

[16:25:09] LAKE: There are negatives. Line could have trouble growing outside key Asian markets. And despite his 200 million active users, the

number of new people signing up has slowed.

PALMER: Is flat user growth an issue? Could be. It could be or it could be just a blip in the radar screen until the next cool thing, the next cool

feature comes out and everybody goes I've got to have that aura got to use that.

LAKE: One thing is certain, a successful IPO will be a crucial test for the markets.

SMITH: there are hundreds of very highly value tech companies that are sitting in the pipeline that are expected to come out into the IPO market.

Who were, Airbnb, we believe that Spotify is going to be lined up to come out. So this will be an important bellwether.

LAKE: A lot is on the line as this popular app makes his public debut. Maggie Lake, CNN Money, New York.


ASHER: All right, from the real world of financial markets you just saw their, to the virtual world of Pokemon Go. Nintendo's wildly popular game

played on smartphones is only about a week old and it's already taking the world of tech. A lot of people are talking about this. Because Pokemon Go

is played by walking around in the real world, retailers are finding ways to profit. Nick Parker hits the streets of New York to find out.


NICK PARKER, CNN CORRESPONDENT: created in a dazzling array of colors and flavors, these artisanal doughnuts are already a hit with sweet tooth New

Yorkers. For now, the company behind them is on a real sugar high as word is out that this door is a Pokemon Go hotspot known as a gym.

PARKER (on camera): Just outside the store a battle for supremacy of the gym is raging on the streets of the lower East side.

UNIDENTIFIED MALE: I'm going to wait till they finish and then destroy their gym.

PARKER (voice-over): A flashpoint for rival teams.

UNIDENTIFIED MALE: This is what the gym looks like.

PARKER: Gym's allow users to train and bulk up the Pokemon characters that they catch in the augmented reality world.

UNIDENTIFIED FEMALE: We're not even from here. Were from Long Island. We were taking the train here to go to the city and then we saw all the pokey

stops and we just got off the train. Like some places have signs, Pokemon related and it kind of makes you want to go in there.

PARKER: I mean, Mark Israel created a whole new product after discovering that all four of his stores were gyms or pokey spots. He designed what he

calls a pokey seed to capture the imagination of new customers.

MARK ISRAEL, OWNER, DOUGHNUT PLANT: We found out Friday when the game came out. And by Saturday morning we had the pokey seed out. As soon as we

finished it, we took a picture of it and put it on the social media. And people started coming down to the shop before we even brought it out.

PARKER: He's charging a 20 cents premium on pokey seed and says overall business is up by an estimated 15 percent. Marketing experts say

businesses could further profit from Pokemon if Nintendo opens up its platform and allows stores to become partners.

TROY OSINOFF, ONLINE MARKETING EXPERT: they can see their customers walking through and taking advantage of these different Pokemon stops if

they were able to rent out or buy Pokemon locations.

UNIDENTIFIED FEMALE: Would you like your receipt?


PARKER (on camera): It seems the time has arrived where were going to taste one of these.

ISRAEL: Cheers.

PARKER: Cheers. Pokey seed.

ISRAEL: Salute.

PARKER (voice-over): Now it's about keeping pace with demand. A challenge likely shared by other small businesses suddenly caught up in the global

Pokemon phenomenon. Nick Parker, CNN, New York.


ASHER: Most European stocks slipped on Wednesday there first lost in five sessions. Investors are waiting for a monetary policy decision by the Bank

of England. And is set to come on Thursday. You see some of the market slipping there. Is this the beginning of the end for the super jumbo?

Airbus is slashing production on its A380 aircraft after struggling to find new commerce. It says it will only build 20 of the twin deck jets next

year. There are currently about 193 of them and use around the world, with about 126 more orders from airlines lined up. That's way below the 1200

Airbus said it expected when the aircraft was first introduced back in 2005.

Well, she has met the Queen. Now Britain's New Prime Minister will face the business world. While the head of a top group of professional leaders

says she has faith in Theresa May. I'll bring that to you just ahead.


[16:32:01] ASHER: I'm Zain Asher at CNN center. There's more QUEST MEANS BUSINESS in just a moment.

Theresa MAY has proposed radical changes for British companies. The business community responds. And there is one political animal staying put

at number 10 Downing Street. But first the headlines at this hour.

Theresa May is the new British Prime Minister tonight. The Queen accepted David Cameron's resignation and formally appointed May to the job. Her

biggest challenge will be negotiating the U.K.'s exit from the European Union. First May is moving very quickly to fill her cabinet. Philip

Hammond was named chancellor of the exchequer, the finance minister. Boris Johnson, gets Hammond's former job as foreign secretary and David Davis is

the Secretary of State for exiting the European Union, the so-called Brexit minister.

Human error may be to blame for Tuesday's deadly train collision in southern Italy. Prosecutors have opened a manslaughter investigation, but

no charges have been filed in the crash, which left 23 people dead. And another somber day in Dallas as mourners pay their final respects to police

officers killed and ambushed. The first of five funerals were held Wednesday. Three officers were laid to rest as family and friends honored

their lies with emotional tributes. The men were gunned down by a sniper last week.

Tonight the new British Prime Minister is in the house at 10 Downing Street, and the pressure is on. The corporate world is watching Theresa

May, who says Brexit must mean Brexit. That is something many in big business never wanted. Credit Suisse says it's new survey shows corporate

sentiment has collapsed in the U.K. after it voted to leave the EU. Investment firm ICAP says it's cautiously confident looking ahead.

Property developer Barratt says it's too early to say what the impact of the uncertainty facing the U.K. economy will be. And JD Wetherspoon's

chief says, "I believe the U.K.'s economic prospects will improve."

Theresa May has announced plans to curb excessive pay and put workers on company boards. That's a major departure from the Conservative Party

stance. Barbara Judge chairs The Institute on Directors, an organization for professional leaders that reports response business practice. Speaking

to me earlier. I started by asking her if she has faith in Theresa May. Take a listen.


BARBARA JUDGE, CHAIR, INSTITUTE OF DIRECTORS: I absolutely do. I think we are very fortunate to have Theresa May at the helm at this moment.

Business hates uncertainty. We now have certainty. We have a politician we know and has gone through numbers of different jobs and has done them

all extremely well. I have no doubt she's be up to this job as she's had all the ones she's had before.

[16:35:10] ASHER: Right, so we do have certainty as you mentioned, but Theresa May has said, and I'm quoting to you here, she said, "Brexit must

mean Brexit and we are going to make a success of it." Just explain how can big businesses there in the U.K. make a success of something that can

possibly, possibly lead the country into a recession?

JUDGE: Well of course, you just that possibly. And frankly, business hates uncertainty. Are members of the IOD, first of all 80 percent of

business is small and medium size business, that's the first thing. But second of all, big business doesn't really worry about Brexit. I sat next

to someone from BP the other night and he said, we're a global business. We don't mind about Brexit at all. Brexit will give us a lot of


We can get rid of some of the over regulation that we haven't liked. We can lower our taxes, which is what George Osbourne has already started to

talk about. We can make Britain even more competitive than it has been. I have worked in Asia, in North America and in Europe. And the one thing I

know for sure is Britain is a trading nation. We were trading before there every was the EU. We will look very strongly at our trading partnerships

with the U.S. and our trading partnerships with Asia. We will look to the places that understand that Britain has so many advantages starting out

with our place in the world, GMT. We have creativity. We have the rule of law. We have a very good place to work, excellent schools. They're so

much about Britain that business all around the world wants that I believe you're going to find that you will make it more successful rather than


ASHER: As you mentioned that Britain is of course a trading nation. It is a net importer. If Theresa May can't negotiate access to the single market

and what happens to big businesses, then?

JUDGE: Well first of all, I don't know whether she can or she can't. The negotiations have just begun. There's many different ways to access the

single market. There's the Norwegian model. There's the Canadian model. There's some misspoke model. What business is looking for his labor,

skilled labor to come into our nation and for us to be able to take our goods, export out of the nation. And that give-and-take is yet to be

negotiated. But I actually put my money on Theresa May.

ASHER: But the question is, can she negotiate access to the single market without freedom of movement. Therefore, living up to the spirit of the

Brexit vote

JUDGE: On never knows what she can negotiate. The negotiations have just begun. We imported many negotiators into Downing Street right now, into

Westminster right now. They'll be a lot of negotiations that will go on as to how much we will have freedom to the single market. How much

immigration we will have. Will be bringing in immigration from around the world, not just from Europe. The point is there will be give-and-take.


ASHER: It was a bittersweet moment for David Cameron speaking out Prime Minister's questions for the final time for the very last time as Prime

Minister. He painted a picture of hope in the halls of Westminster.


DAVID CAMERON, BRITISH PRIME MINISTER: The last thing I would say is you can achieve a lot of things in politics. You get a lot of things done.

That in the end, the public service, the national interest that is what it's all about. Nothing is really impossible if you put your mind to it.

After all, as I once said, I was the future once.


ASHER: It was a reference back to 2005 when a young youthful exuberant David Cameron made his debut across the aisle from the then Prime Minister,

Tony Blair. But it's not quite over for David Cameron. He is sticking around continuing as a member of Parliament. He sorted out a small office

across from Parliament and is preparing for life on the back benches as well, of Westminster. Max Foster takes a look back at David Cameron's six

steward years in office and his fateful decision to roll the dice on Europe.


MAX FOSTER, CNN ANCHOR AND CORRESPONDENT (voice-over): David Cameron's promise of a referendum ultimately the death now of his leadership. The

argument over Britain's place in Europe bringing his time add 10 Downing Street to a dramatic end. When Cameron first took office in 2010, it was

against an unfamiliar backdrop. A coalition government for the first time in generations.

CAMERON: we are announcing a new politics.

FOSTER: In this new era Cameron oversaw the country's gradual economic recovery. A shrinking budget deficit any record number of jobs created.

Although the process of austerity was painful for some. Cameron maintains Britain's special relationship with America. Joined the international

coalition against ISIS. And welcomed the world for a highly successful London 2012 Olympics.

[16:40:01] When it came to reelection last year, even Cameron was taken by surprise when he won a majority. But that win came at a cost. Pressure

from an increasingly disgruntled group of Eurosceptic MPs within Cameron's own party, forced him to make a pledge.

CAMERON: Yes, we will issue that referendum on our future in Europe.

FOSTER: The Europe issue has divided Cameron's Conservative Party for decades.

CAMERON: I am not a British isolationist, but I do want a better deal for Britain.

FOSTER: In February he went to Brussels to renegotiate Britain's position in Europe. He declared it a success. But his critics, including high

profile members of his own cabinet, said little had changed.

BORIS JOHNSON, FORMER LONDON MAYOR: Explain to the House and to the country exactly what way this deal returns sovereignty over any field of


FOSTER: Having failed to convince even some of his closest political allies, Cameron's position going into the referendum was vulnerable. And

after the ballots were counted Britain had voted to leave the EU and the PM fell on his sword.

CAMERON: We should aim to have a new prime minister in place by the start of the Conservative Party conference in October. Delivering stability will

be important.

FOSTER: After days of political blood shed to name his successor, a fellow remain campaigner, Theresa May, outlasted the others forcing Cameron's hand

one last time.

CAMERON: I will attend the House of Commons for Prime Minister's questions and then after that I expect to go to the palace and offer my resignation.

So we'll have a new prime minister in that building behind me, by Wednesday evening. Thank you very much.

FOSTER: A hasty exit for a Prime Minister who dared to tackle the European question and lost.


ASHER: Amid the political cat fight for number 10 Downing Street, there does remain to be one constant. Larry the cat. He'll remain the resident

of the street. And there was no pussyfooting from David Cameron earlier. He showed Parliament a photo of him and Larry insisting he's sad to be

leaving him in the Westminster catwalk. Later tweeting that picture together with a single word, "Proof," proof that he really does love Larry.

Larry, does, however, have feline company. Thomaston, the new chief mouser of the foreign and Commonwealth office. It's uncertain the future for El

Gato the cat of opposition leader Jeremy Corbin. He may have to shelf ambitions of becoming a chief mouser as the Labour Party bears its claws in

a leadership contest.

All right, still to come here on QUEST MEANS BUSINESS. It's an odd version of the Apprentice as Donald Trump closes in on his choice for vice

president. That's next.


[16:45:06] ASHER: All right, now time for a bit of U.S. politics. Donald Trump is said to be very close to picking his running mate. We should find

out in a few days from now. The presumptive Republican nominee says he has three top finalists to be his vice president. They are, you see them the

man on the screen there. New Jersey Governor, Chris Christie, he's been campaigning with Trump this week. Former house speaker, Newt Gingrich as

well, and Indiana Governor, Mike Pence. Those are the top three they appeared -- Mike Pence rather appeared with Donald Trump at a rally on

Tuesday. I'm joined now to break this down with our very own political man, Jonathan Mann. So what is Donald Trump looking for in a vice

presidential candidate? What kind of candidate would actually make him a stronger nominee?

JONATHAN MANN, CNN "POLITICAL MANN": Well he's been very clear that he wants someone who knows how government operates. Keep in mind Donald Trump

has never run for elected office. He's never held elected office. He's been a New York tycoon his whole life. He wants a Washington insider. He

said that explicitly. And that's why you're seeing some of those names on this list. He's also said more recently that he wants a fighter. Someone

that's really going to go out and make the case for him. And again, that's a characteristic we've seen in a couple of these candidates.

ASHER: That's Chris Christie. That's the fighter.

MANN: Chris Christie is the fighter. Newt Gingrich has also been outspoken in his defense. And Mike Pence last night at his audition, his

first campaign appearance for Trump, was also way more of a fighter than the people of Indiana have ever seen him before. So the candidates are

already leaning in that direction. One thing he has not said, but the party is saying and other people are saying, is that he needs someone to

reassure conservatives, Republicans that he is one of them. And that's why Mike Pence is on the list. Basically Donald Trump is an outsider to most

of the people he's inviting to vote for him as a Republican presidential candidate. And this would be an opportunity to establish his credentials

with this pick.

ASHER: Oh, so you strike the balance basically. He's the outsider. Bring someone else as an insider. You've got the pair to balance it out like


MANN: That would be the way of thinking. Mike Pence, Indiana Governor. He was a member of the House of Representatives for 12 years. He was high

up in the house leadership. He was on the House foreign affairs committee. He's an Evangelical Christian. He is as conservative as they come. And so

that punches the conservative ticket for Donald Trump in the way that the others cannot. In a way that Donald Trump has never been able to. Because

he is a famously liberal figure by the standards of the Christian right.

ASHER: There's hardly a week go by without Donald Trump saying something controversial. Let's talk about this spat. This latest argument he's had

with Supreme Court Justice Ruth Bader Ginsburg. What started it?

MANN: Well that's the astonishing thing. He did not start it.

ASHER: Who did start it?

MANN: she started it out of the blue --

ASHER: She started it in an interview.

MANN: -- in any interview with the New York Times. Where she said she couldn't imagine the court, she couldn't imagine the country with Donald

Trump is president. And quoting her late husband, she said it might be time to move to New Zealand. OK, maybe elapse on her part, but that was

interview number one.

Then after she'd had some time to think about it, a previously scheduled interview subsequent was CNN, she did the same thing. She says, "He is a

faker. He says whatever he wants to say. Anything that's going through his head. I can't believe he's never been forces to show his tax returns."

This is unprecedented, I just want to make this point over and over again.

ASHER: I've never seen a Supreme Court Justice --

MANN: no one ever has.

ASHER: -- say anything like that about a presidential candidate.

MANN: her political leanings are well known. She's on the liberal side of the court. She's a hero or heroine I should say, to many young American

liberals. But never has a Supreme Court Justice gone on the record against a political candidate in the course of an election campaign. People are

startled. The New York Times, which loves Ruth Bader Ginsburg, which loves the Democratic Party, even it was appalled and editorialized against her.

ASHER: there has been so much in this election that we have never seen before. So I guess that is nothing new. But Jonathan Mann, thank you so

much for breaking that down for us, appreciate it.

All right, running out of medical supplies and running on desperation, Venezuela is spiraling out of control right now. In the countries falling

oil revenue is simply making matters worse. First they highlight from "MAKE, CREATE, INNOVATE."


[16:51:10] ASHER: Venezuela's oil output is at a 13-year low and set to get worse. The international energy agency says an economic crisis is

weighing on the country at a time when the country desperately needs revenue. Paula Newton is in Caracas for us tonight. So Paula, beside from

the figures from oil revenue, there is a very real human cost to this desperation.

PAULA NEWTON, CNN ANCHOR, CORRESPONDENT: Zain, compared to what we see on the street is almost crass to even mention that kind of a number. But we

have to look at all of this in context. We have a country that is sitting on the largest proven oil reserves in the world. And children here are now

dying, because they do not have common medicines that have been available here for decades. Take a look.


NEWTON (voice-over): Like any mother, Lucero Rodriguez, is anxious to be with her son in intensive care. You can see it how her touch so comforts

Dylan. And yet this mother says it's agony knowing there is much more he needs that she can't give him.

LUCERO RODRIQUEZ (through translator): At this point things are getting worse and worse. We can't get medical supplies for the baby. We can't

even find the formula he needs to grow. Now we're making sacrifices. I have been in the hospital for 15 days and have witnessed how children are

dying every day.

NEWTON: And doctors tell us that's a real risk for Dylan. He has cystic fibrosis. It damages the lungs and digestive system. Right now the

medical team works hard to expunge dangerous mucus. But here in Venezuela dealing can't get the antibiotics or any of the other specialized medicine

he needs to help them survive.

But Dylan's not alone, Dr. Urbina says standing by his side, 70% to 80% of the medicines children need in Venezuela haven't arrived at Caracas is

pediatric hospital or anywhere else for months. Even cancer patients are left untreated.

NEWTON (on camera): the sad truth is pediatric oncology has been completely shut down in this hospital. Chemo is being done here, but the

doctors tell us that the medicines are still completely inadequate.

NEWTON (voice-over): Six-year-old Gustavo has leukemia. But instead of intensive therapy his is sporadic. His mother, Gabriela Mota, worries

about when he'll have his next chemo treatment. Having already seen for children die without it.

GABRIELA MOTA: I don't know whose fault it is, she explains. If it's the government or the opposition or XYZ, I don't know. It's sad for us to

suffer for whoever did this to our children.

NEWTON (on camera): do you have any doubt that children are dying because of these medicines.

HUNIADES URBINA-MEDINA, DIRECTOR OF VENEZUELAN PEDIATRIC SOCIETY: Yes of course, totally. We have an intensive care unit is about 10 beds, and we

are only working with four.


URBINA-MEDINA: Because we don't have medical supplies. We don't have enough nurses.

NEWTON (voice-over): Dr. Urbina takes us to ICU and shows us the leaks, the mold, the derelict conditions.

URBINA-MEDINA: You will see this area. Four years ago there was a fire.

NEWTON: Four years. Still this wing hasn't been rebuilt. You can see why Dr. Urbina says most days he and his colleagues feel like they're

practicing wartime medicine. Shattered wards, broken equipment, festering toilets.

URBINA-MEDINA: We have to deal with that because we love our children. We love our hospital. We love Venezuela. And even though this looking at

this we have to work.

NEWTON: Parents carry-on to. This is an intimate moment as Lucero showers Dylan with all the love she can, still burdened at what is not in short

supply here, despair.


[16:55:00] NEWTON: You know that mother remains at Dylan's bedside and she knows in fact that he's lucky. He's in hospital. He's getting some kind

of treatment. You know, Zain, there's been a huge social media campaign here for months and if you go on to twitter you will see it. Literally

cries for help on social media. Does anyone have this medicine? Do you know any way you can get it to Venezuela? There are some NGOs that have

been helping out, but Zain, it's just not enough.

ASHER: Yes, because that was going to be my next question. I mean, I'm sure there are so many people around the world watch your story thinking,

you know, how can I help? How can I help the mothers in Venezuela who are in such despair? I mean, is there anything the international community can


NEWTON: Well the main problem now is that the government disputes what we just put out there on the report. The health minister here tells CNN that

medicines aren't in short supply. They are dealing with some shortages, about 15 percent. But they say it's a problem with distribution. Quite

frankly the mothers I've spoken to, we don't care. It's not about politics. I don't see chemo here for my son. And I know that two years

ago, three years ago it was available. Zain, there are as I said, private NGOs working. That's why the international mediation and negotiations

going on right now are so important, because they're trying to get the government to relent and actually realize the problems and try and help

them with it.

ASHER: All right. Just heart breaking what's happening there on the streets of Venezuela. Paula Newton, thank you so much for your reporting.

Appreciate you being with us live from Caracas, appreciate that. Least from there. Thank you.

All right, that does it for us here at QUEST MEANS BUSINESS. I'm Zain Asher here at CNN center in Atlanta. The news continues here at CNN don't

go away.