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Quest Means Business
Trump Unveils Anti-Terrorism Plan; Trump's Campaign Chief Under Investigation; Wade Van Niekerk Runs World Record 400 Meter; U.S. Markets Close at All Time High; Reports: Apple TV to Introduce Twitter App; Terror Fears Hurt Travel and Tourism Sectors; New Boko Haram Video Shows Chibok Girls; Trump Made $39 Million While Casino Failed; Apple's CEO Tim Cook on Who He Calls for Advice. Aired 4-5p ET
Aired August 15, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] RICHARD QUEST, CNN HOST: The bell is ringing on Wall Street on the start of new day. Look at that, the Dow is up 58 points, records. Oh,
a false start. Look at that, there was a false start to the closing bell. And they booed at the stock exchange when they hear that. But here we go.
I feel it's going to be a good gavel. Come on. Sometimes they get it right. It is a start of a new week. It is Monday. It is the 15th of
August.
Tonight, an immigration overhaul. Donald Trump calls for extreme vetting at the borders of the United States.
And the oil market Brent Crude heading for a bold summer. Nigeria's oil minister will be with us on this program.
And I get by with a little help from my friend. Tim Cook reveals who he turns to for advice. I'm Richard Quest. It may be the middle of summer,
but I'm in New York. And I mean business.
Good evening. Tonight, Donald Trump has pledged to fight ISIS online, in the Middle East, and on America's borders. Speaking a short time ago the
Republican nominee warned that the U.S. is facing threats like never before and his solution is to end nation building. He says he's looking forward
to help from allies including NATO, Russia, and the moderate nations in the Middle East. And what he called an extreme vetting of those seeking to
enter the United States.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL NOMINEE: We admit about 100,000 permanent immigrants from the Middle East every year. Beyond that, we
admit hundreds of thousands of temporary workers and visitors from the same regions. Hundreds of thousands. If we don't control the numbers, we can't
perform adequate screening. There is no way it can take place.
(END VIDEO CLIP)
QUEST: Now, to do this Mr. Trump would overhaul the process of immigration or visits to the United States. There are three key proposals. First,
he's going to withhold visas from countries where the U.S. can perform adequate screening, specifically Syria and Libya. They'll be a values test
for visa applicants to weed out extremists as well.
(BEGIN VIDEO CLIP)
TRUMP: We should only admit into this country those who share our values and respect our people. In the cold war, we had an ideological screening
test. The time is overdue to develop a new screening test for the threats we face today. I call it extreme vetting. I call it extreme, extreme
vetting. Our country has enough problems. We don't need more. And these are problems like we've never had before.
(END VIDEO CLIP)
QUEST: Well, part of this increased vetting there will be cooperation with moderate regimes in the Middle East. And that's defined as anyone who is
committed to defeating ISIS. Nick Burns served as U.S. ambassador to NATO as well as Undersecretary of State for Political Affairs. He's now a
professor at the Kennedy School of Government. If anybody knows anything about this sort of subject and when it works, it's you, ambassador. Look,
extreme vetting. What happened inside you when you heard those words? Did you think this is the answer, or this is a problem?
NICHOLAS BURNS, FMR. U.S. UNDERSECRETARY FOR POLITICAL AFFAIRS: I think that Trump has presented us with a problem today. It's not the answer,
clearly. Richard, we've taken in 800,000 immigrants into the United States since 9/11 with very few problems. We have a tough screening by the
Department of State and the Immigration and Naturalization Service. We decide who comes into this country. We practice protection of our borders
as all other countries do.
But to say that we're going to impose a government-written ideological test on people coming into this country, that smacks to me as being un-American.
Who will write the test? What are they going to screen for? Will it reflect the ideology of just the administration writing the test? That's
not the kind of country you are. Because as you well-known, we're based upon freedom of expression and freedom of religion and freedom of the
press. We don't want to keep out all Muslins, which Trump has proposed before. We certainly don't want to say that Brits and French -- the Brits
and Belgians can apply because they've had terrorism on their soil. I think this speech was not thought through very clearly.
[16:05:00] QUEST: But It has a certain attractiveness to it when the fundamental point is put that many of -- the growth of ISIS has taken
place, and I think, you know, you have to accept Mr. Trump's -- not that the president is the founder of ISIS but that the growth of ISIS has taken
place on his watch.
BURNS: Well, I think that is a little bit illusory, because of course ISIS came out of a broken Iraq and a broken Syria. I served in many
administrations, Richard, Republican and Democrat. I served in the George W. Bush administration. That's when the Iraq War started. I don't think
it's fair for Donald Trump or Rudy Giuliani to say that President Obama is singularly responsible for these problems in the Middle East. All of us
who served in government share in that responsibility and I include myself in that.
But this speech today was a frightening speech to me, because it will impose restrictions, I think, on the rights that Americans and intending
immigrants to this country should enjoy as citizens. And you know, a questionnaire is not going to keep out terrorists. What's going to keep
out terrorists is effective intelligence cooperation with the Arab states and with the European countries and effective military action.
And Donald Trump called for all that today, but President Obama has already created a coalition against the Islamic state, and that coalition is making
progress. So there was nothing new in the speech. But what he said about means tests and ideological tests, I find that very bizarre and very
unwelcome.
QUEST: I suppose the argument would go, of course, how far can you deviate from the values expressed in the test before one is deemed to be
unacceptable, to pass that test, which of course will be one of the difficulties that I suspect your former colleagues in embassies and
consulates around the world would have to navigate on a daily basis.
BURNS: Well, that's right. And the State Department and the Immigration and Naturalization Service have done a good job in keeping terrorists out
of this country. As I said before, we've had very few problems. And we don't want to go back to earlier times in American history, in the 19th
century -- I'm Irish American, there were political parties and laws that tried to keep Irish-Americans out of the United States. That's what
happened to many of our ethnic groups. We are now a tolerant, inclusive society, and we don't want begin saying that people from a certain part of
the world are no longer welcome in this country, and that's what Trump has been saying consistently for 12 months now.
QUEST: Except for the point that with all the policies that are currently in place, we still end up with attacks in Belgium, in Paris, in Turkey, and
atrocities elsewhere too. So you have to accept perhaps, ambassador, that there is an attractiveness to Mr. Trump's message to a nation that is
concerned that not enough is being done to a successful conclusion.
BURNS: I actually don't think that Trump's message is attractive, Richard. I don't think it's rational. But you are right that we absolutely must try
every means possible to defeat terrorism where it is, in the Middle East and in North Africa and in West Africa, to help those countries fight it.
We also have a problem with lone wolf attacks in the United States so we must be vigilant. But we are vigilant. And since 9/11 we've built up in
both the Bush and Obama administrations a system that has been largely, but not completely successful. And so job number one for the American
president is protecting this country from terrorist. I think that Hillary Clinton will do a much better job at this than these half-baked proposals
authored by Donald Trump.
QUEST: Ambassador, how good to see you, sir. Thank you for being with us. I appreciate your time.
BURNS: Thank you, Richard.
QUEST: Thank you very much. Now we will of course be talking to somebody from the Donald Trump campaign to be getting a little more detail on
exactly what, from the campaign's point of view, why they believe this is the right answer. You'll hear that coming up in the program in a moment or
two.
CNN has confirmed that Donald Trump's campaign manager, Paul Manafort, is indeed under investigation over alleged illegal payments from a pro-Russian
party in Ukraine. The country's anticorruption bureau is looking into whether Manafort received $12 million in undisclosed payments from the
party of former pro-Russian President Viktor Yanukovych. You remember on Fridays program, on QUEST MEANS BUSINESS, the Ukraine's finance minister
said his country was committed to unearthing corruption.
(BEGIN VIDEOTAPE)
OLEKSANDR DANYLYUK, UKRAINIAN FINANCE MINISTER: This Was Something That Was Discussed. It is one of the biggest problems. It was a big problem in
the Ukraine. You know, were very active in fighting corruption. And what I can tell you is that some institutions that were set up last year,
National and the Corruption Bureau, Agency for Prevention of Corruption.
[16:10:00] They started to work and they are showing results. This is visible. I was actually engaged in setting them up, and I could tell you
just, you know, the expectations that we have. They are materializing.
QUEST: Are you worried about president Trump being elected?
DANYLYUK: It's a difficult question, to be honest. I do believe that some people who say something in the election campaign, when they become and see
the polls, they become more responsible and they actually start to think seriously about the actions. So I do believe that U.S. was always a big
supporter of Ukraine, and will continue to be a big supporter, strategic partner of Ukraine for years to come.
(END VIDEOTAPE)
QUEST: We'll hear more and will put this into perspective for you as the views seen from Moscow on these.
It is QUEST MEANS BUSINESS at the start of a new week. And a reminder, by the way, the Dow and NASDAQ did both closed at record highs today, even
though we're in the middle of the summer, but both of them were at record highs. Look at the Dow. It went straight up like a rocket and never
really looked back, 18,636.
South Africa has produced the world's quickest ever man to run 400 meters but he remains adamant, he hates the competition. In a moment.
(COMMERCIAL BREAK)
QUEST: We were talking about before the break about Donald Trump's campaign manager under investigation in the Ukraine over potentially
accepting money from pro-Russian forces. CNN's Matthew Chance is live with me from Moscow. So Ukraine's anticorruption body, Matthew, is
investigating Manafort, and allegedly for what, and does this have legs?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: I mean, it could well do. We'll have to wait to see what they come up with. But what we
have at the moment is a ledger essentially. Which was apparently stolen from the party headquarters of the party of the regions, which is a
Ukrainian political party that was the party of Viktor Yanukovych. Now he was the Ukrainian president who was ousted, who left the country in
November 2013, following that Maidan uprising. He fled to Russia. He was very close to Vladimir Putin, close to the Kremlin.
And on that ledger, it shows that Paul Manafort received a total of $12.7 million in previously undisclosed payments from that political party. Now,
the anti-corruption office in the Ukraine, in Kiev, is saying that he along with a number of other people on that list are being investigated. It's
all part of a more general corruption inquiry into the misdeeds of the previous administration of the pro-kremlin, Viktor Yanukovych by this new
pro-western government that took power after the Maidan uprising.
[16:15:00] And so, yes, it's potentially very damaging indeed. It certainly doesn't do much for the cause of putting distance between the
Trump campaign, because Mr. Manafort, of course, is the chairman of the Trump campaign, put distance between the Trump campaign and the Kremlin or
in this case, friends of the Kremlin.
QUEST: Now, in this particular instance, the anticorruption organization or unit in Ukraine, is it widely -- is it well-thought-of? We had the
minister on the program last week who said he was having marvelous successes and was getting to grips with corruption in Ukraine. But from
your understanding of this, is this anticorruption unit actually worth the paper it's written on?
CHANCE: Well, it's been set up, it's called the National Anticorruption Bureau, so it's a sort of federal body, you know, body, a national body.
It does have this very kind of powerful mandate to investigate all the corrupt practices that took place under the previous administration. But
because of that very kind of remit, I suppose, you could argue that it's politically sort of tainted. It doesn't so much investigate current
corruption problems. It investigates the problems of the political opposition inside Ukraine. So in that sense it's not entirely fair. That
would be the main criticism of it, I think.
QUEST: Matthew Chance in Moscow, thank you, sir, for staying up late for us tonight in the Russian capital. We thank you, Matthew.
South Africa has a new sporting icon. He's Wayde Van Niekerk. He is in exactly a household name in Olympic running. Yet he bagged the 400-meter
gold in Rio and he did it in record time, 43.03 seconds. I wonder how long it took me to get over to the super screen. Now he smashed the previous
records set by American legend Michael Johnson back in 1999. And that's not all. He somewhat of a sprinting chameleon. Van Niekerk is the first
man ever to have run 100 meters in under ten seconds. Usain Bolt is quicker. But 100 meters in under ten seconds. What else can this man do?
Van Niekerk can run 200 meters in under 20 seconds. And if that wasn't enough, with his golden Olympic triumph, he runs 400 meters in under 44
seconds. I am exhausted merely pushing the buttons and thinking of running that far. CNN's Don Riddell, who can run 400 meters in 4 1/2 minutes,
joins me now. Don't worry, Don, you do it in 4 1/2 minutes, I promise you you'll be leaving me in the dust with six behind you. Lovely day there in
Rio.
DON RIDDELL, CNN WORLD SPORT: It was amazing. For the record, I think I got it down to about 53, 54 seconds when I was in high school. I didn't
particularly enjoy the event, it's a long way to sprint, especially when you're in the outside lane as he was last night. Richard, I was very, very
lucky to be in the stadium to see history being made there. It was an absolutely breathtaking performance. And Michael Johnson has been talking
about having his record beaten. And one of the things he observed was that this guy did it from the outside lane.
Richard, when you start there, you kind of get a head start, because the outside lane is longer. So it means that you don't get to see anybody.
You're ahead of the field. If anybody passes you, you have then got a longer distance to run. So it's very, very hard to get it back. So this
guy got all the way around to the final straight. The field was still behind him. He managed to get over the line in world record time. It was
absolutely incredible. And you talked about all his feats are ready.
He was already the world champion. Now he's Olympic champion and the world record holder. And another really cool thing about this guy, who some are
saying, could well be the future of athletics. He came pretty close to upstaging Usain Bolt last night, which is no mean feat. He is coached by a
74-year-old great-grandmother. You don't see that very often at the Olympics.
QUEST: Yes, let's talk about that. What do we know -- this is somewhat of an unusual coaching arrangement? How did it come about? Knowing South
Africa, I suspect there's a good story behind it.
RIDDELL: Well, I tell you what is a good story, Van Niekerk's mother was actually a very promising athlete as well, but of course she was competing
in the apartheid era, which meant that her sporting career was rather curtailed. And I've covered other sporting stories from this era in South
Africa, where you had very, very talented athletes who were never really able to realize their potential because they couldn't compete on the
international stage. And so that certainly -- his family history. But clearly his coach is very, very talented, and very, very unusual.
QUEST: Don, just help me understand, because whenever I look at the pictures of the race, one of these races, and they are staggered forward,
it always seems to be so unfair to the person on the inside who is seen so far behind.
[16:20:03] But obviously, to the viewers who are not as familiar as you are with this, how mathematically, technically correct is the distance that
they stagger the forward length of the curve?
RIDDELL: Well, I would imagine it's perfectly fair. I've never really questioned it. To be honest with you, I used to love running on the inside
lane because you could see the entire field and you know exactly what you've got to do. They are all running the same length, but they have to
stagger it to try and make it fair, they have to make it so that everybody's running the same distance, 400 meters.
QUEST: Before the end of the year, you and I will have to have a contest, 100 meters, with a slight handicap for those of us who are slightly more
older than others. Are you on for that, Mr. Riddle?
RIDDELL: I am absolutely on. Next time you're in Atlanta, we'll hit the track. Let's do it.
QUEST: It's a deal. Don Riddell who is in Rio. I think I'll need more than a handicap, I'll need start three hours before him. U.S. markets have
closed at an all-time high. Up to 18,636, a gain of the best part of 60 points. The S&P, the NASDAQ, they've all set records for the day. Paul la
Monica, middle of August, now these are quiet days generally in the market, so volume is probably not that high, but what's driving this market to this
sort of level? Good to see you.
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Good to see you as well. A lot of it was oil today, Richard, oil prices continuing to rebound, hopes
that we might finally get a meaningful production cut. As you know, we've been here before. It hasn't happened. Some versus are skeptical. Right
now we're seeing many people bullish on energy stocks once again. That's helping the broader market.
QUEST: This is a cut to raise prices. We are continuing the perversion that higher oil prices are good for stocks.
LA MONICA: Exactly. I think obviously there is a happy medium. When oil prices were at record highs, well over $100 a barrel, that was not good for
the broader economy and the market because it really put a crimp in consumer spending. Right now prices are still relatively cheap. So you do
have consumers going out and shopping. And were going to see that with Walmart, Home Depot, Target, their earnings coming later this week.
QUEST: What other market movement news did we see during the course of the day?
LA MONICA: One interesting one was Twitter's stock rallying, and I think that that is related to reports that Twitter might wind up being an Apple
TV service, which is interesting, because Twitter really betting on sports. Twitter now has a deal to broadcast NFL games on Thursday nights. So the
hope is that maybe that is something that gets more exposure through Apple. Twitter also has deals with the MBA, major league baseball, they had
Wimbledon. So they're streaming a lot of sports.
QUEST: They also streamed the conventions when I was traveling and was unable to watch our own stream.
LA MONICA: Politics and sports are two big markets for that.
QUEST: I was watching it. Good to see you, thank you. We can't even shake hands.
LA MONICA: I know. The bell is in the way.
What hope have I got for the 100 meters against Don Riddell. European stocks closed in the green on Monday, smaller gains on Wall Street, limited
impact on the oil gains. The weak economic impact on the data from Japan. Investors still wanting more stimulus in China. Only the Paris market
lagged behind the other markets, was down just a smidgen. Major airlines stocks bucked the trends on the FTSE. With EasyJet and IAG, that's the
owner British Airways and Iberia. They were down more than 1 percent. It's been a tough year for Europe's travel and tourism sector after wave of
terror attacks. In London Isa Soares has sent this dispatch.
(BEGIN VIDEOTAPE)
ISA SOARES, CNN CORRESPONDENT (voice-over): from Paris to Nice, Brussels to Ansbach in Germany. Northern Europe has been shaken by acts of
brutality this year. The message from European leaders has been one of unity.
FRANCOIS HOLLANDE, FRENCH PRESIDENT: It is clear that we must do everything that we can to fight against the scourge of terrorism.
SOARES: And resolve.
ANGELA MERKEL, GERMAN CHANCELLOR: I am convinced that despite the difficulties, we will win this fight.
SOARES: Despite these words, fear and hesitation is quietly growing in the continent, and in particular the travel industry. Take the view from
Britain. Here, according to the association of British Travel Agents, U.K. sun seekers want their summer sun with a certain of security. Holidays to
Tunisia, which suffered a terror attack on one of its beaches, is down 90 percent compared to last year. Egypt is down 70 percent and Turkey, which
recently saw a failed coup, has fallen by 30 percent.
SEAN TIPTON, ASSOCIATION OF BRITISH TRAVEL AGENTS: There's been a marked shift in the way and the kind of holidays that people are taking. They've
moved away from the eastern Mediterranean, places like Turkey, Egypt and Tunisia and shifted to perennial favorites.
SOARES: Instead holiday makers are looking to the sun, sea, and sangria of Spain as well as Portugal.
[16:25:00] In Spain, in the first six months of this year alone, nearly 33 million foreigners visited the country, that's an increase of almost 12
percent from last year.
CRAIG LEVER, BRITISH TOURIST: The way the world is at the moment, it's not the safest to get there, it's not the safest there. So a place like
Portugal, you would think, is much safer and much more relaxed security- wise than the Gulf.
SOARES (on camera): And while some have gained from what has been a summer of shocks been a cascade of attacks in Europe and the fallout from Brexit.
Others in particular, European airlines and their investors have been rattled by it. EasyJet's stock price has fallen 43 percent since the
beginning of the year. Low cost operator Ryanair was priced up just over a fifth. Travel agent Thomas Cook has seen 50 percent of its value wiped off
during the same period.
SOARES (voice-over): For the time being, the terror attacks have not seemed to have put people completely off traveling. But it is affecting
their choice of destination. And for so many here in Europe, safety and security are now paramount. Isa Soares, CNN, London.
(END VIDEOTAPE)
QUEST: As we continue tonight, investors hoping for a freeze in oil production at OPEC's meeting next month. Remember the meeting came out of
the blue, but the optimistic is questionable. You're going to hear from the oil minister of Nigeria that has certainly enough of his own problems
in dealing particularly with the lack of production, the shortfall where Nigeria's production is down 23 percent so far. QUEST MEANS BUSINESS, good
evening.
(COMMERCIAL BREAK)
[16:30:00] QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment, when Nigeria's oil minister will be with me live
from Arusha, as the rally continues for crude oil. And what do Warren Buffett, Lloyd Blankfein and CNN's Anderson Cooper got in common? They are
advisers to Tim Cook as part of his all-star lineup of confidants. Before that, this is CNN. And on this network, the news always comes first.
Donald Trump unveiled his strategy for fighting ISIS. The Republican nominee pledged to put an end to nation building in the Middle East and to
ally with Russia. At home he said he would implement extreme vetting of immigrants and he said the U.S. would be vicious when necessary.
(BEGIN VIDEO CLIP)
TRUMP: Military, cyber, and financial warfare will all be necessary to dismantle Islamic terrorism. But we must use ideological warfare as well.
Very important. And they use it on us better than we have ever even thought of use it on them. But that will change.
(END VIDEO CLIP)
QUEST: Mr. Trump's campaign manager is under investigation. Ukraine's Anticorruption Bureau wants to find out if Paul Manafort received millions
of dollars in allegedly illegal payments from Ukraine's former pro-Russian ruling party. Mr. Manafort is denying any Ukraine payments.
On the Democratic side, Hillary Clinton is on the campaign trail with the Vice President Joe Biden and together they attacked the Republican nominee
as a threat to national security. Joe Biden also blasted Trump for what he described as dangerous comments he made about President Obama being the
founder of ISIS. And said Trump's rhetoric endangered American troops overseas.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. VICE PRESIDENT: If my son were still in Iraq, and I say to all those who are there, the threat to their life has gone up a couple of
clicks. It's gone up a couple of clicks.
(END VIDEO CLIP)
QUEST: The Corsican mayor has announced a ban on burkini following clashes between villagers and some Muslim families. The ban is the third to be
introduced this summer in the French towns. The burkini is a full-bodied swimsuit warned by some Muslim women. Some officials on the French Riviera
say it defies the country's laws on secularism.
A U.K. police watchdog has been called into to investigate the death of a former Premier League football player. The local media is saying Dalian
Atkinson died on Monday after being shot with a Taser by police in Telford, which is about 200 kilometers' northwest of London. During his 21-year
career, Atkinson played for Aston Villa and Manchester City amongst others. There have been tributes from his former clubs and teammates.
Oil prices continue to surge. They're up more than 3 percent and the prices are climbing past $48 a barrel, 50 on the horizon. Two weeks ago
they were down at $40. They were boosted by hopes of a new production freeze with OPEC. In Nigeria, it's a much less rosy picture as you'll see
from the numbers. The oil giant was producing 2.2 million barrels per day earlier this year. It's now around 1.5 to 1.6 million as militant groups
continue to hamper the country's output.
Emmanuel Ibe Kachikwu is the Nigerian oil minister. The minister is with me live from Abuja. Minister, good to see you, sir. Thank you for taking
time to talk to us. We'll deal with OPEC in a moment. First, I just want to ask you, I mean, you've described the average for the year as being
abysmal, 1.5 million barrels a day. How do you intend to get production back up again?
EMMANUEL IBE KACHIKWU, NIGERIAN OIL MINISTER: Richard, thank you for having me. Glad to be here. Yes, it's a difficult time. Production is
outrageous, like you rightly said, about 1.5 million barrels a day. But well we intend to get it up. First, we've had militancy problems that
we've had in the Niger Delta. We're putting a lot of energy around it, a lot of dialogue, a lot of engagement, a lot of security meetings to try and
resolve this. The President, Muhammadu Buhari is very concerned about this, and a lot of his executive time has been given to this.
We're expecting and hoping, knock on wood, that in one month, two months, we will find some final solution that will bring production up. Once we've
done that, the resources that we've lost quite a lot of months, five, six months of continuous problems. So it's going to be difficult to catch up
with the 2.2 million barrels on which our system is based. But we're certainly going to try, once things have calmed down and oil companies come
back for the production. But we need almost an average of 900,000 barrels a day of excess production to catch up. That's going to be tough. But
we're going to work on that.
QUEST: If you need 900,000 barrels of excess production to catch up at a time when OPEC is actually looking to cut production, realistically, can
you see any form of cuts being agreed at this meeting in September?
IBE KACHIKWU: I'm not optimistic about that. We've tried that a couple of times. And I think we've not been able to get the sort of unity we need to
affect those cuts. We need and a lot of us are convinced that when those cut is even affected it will have such a major impact. As you know, what
their produces is only about 30 percent of world oil today, so unless we reach some commonality or dialogue with the 70 percent producers you find
that are 20 percent infraction will make much of a difference. So I'm not too optimistic about that. What I think we need to continue to do is to be
aggressive about the engagement of the 70 percent producers. And that is finally what is going to get us there.
[16:35:00] QUEST: Can I put you a criticism about the new -- or the government, it's not new anymore, but the government that some people say -
- I want you to listen to a critic of the government, talking about the Chibok girls, the couple of hundred girls who have still not been found,
they were abducted by Boko Haram a couple of years ago. Listen to this criticism of the government, sir, and I'll ask for your reaction
afterwards.
(BEGIN VIDEO CLIP)
HOSEA TSAMBIDO, CHAIRMAN, CHIBOK COMMUNITY: We have never called this government clueless. But because of false promises, doing nothing. Worst
of all I think the chief of air staff said that they have already finished their work in the Northeast. Now they're packing their things to the Niger
Delta to go and to cut the pipelines. Well, they're still in the bush. Which means the oil is better than the humans.
(END VIDEO CLIP)
QUEST: The fundamental criticism, sir, for you to respond to, is that the economy and the oil is considered to be more of a priority for the
government than finding the girls.
IBE KACHIKWU: Richard, not so at all. On the contrary, since President, Muhammadu Buhari, resumed, I think his first initial steps was target the
crisis in the Northeast and the Chibok girls. If you remember, most of the business said he had where to neighboring countries trying to gather
alignment amongst neighboring countries, military forces and fight on this issue. And the military has been completely engaged in that territory.
One of the crisis that the president inherited was once he came in, he found that monies that were allocated to the military to be able to deal
with these issues were largely diverted. And he spent a lot of time trying to find funds, trying to reach out to individuals who corrupted and rid
themselves with this money. So he first had to deal with that problem. Once he dealt with that, the army has gotten a lot more brisk in his
business. However, we thusly have not found the girls and is sorrowful for everybody. Every Nigerian who thinks about it, I have children, the last
thing I want is for those children to be in the forest, abandoned. And we're doing everything that we can. It's a very emotional issue in Nigeria
and I sympathize with all parents who are in the situation. But the president hasn't given up on this.
QUEST: Minister, thank you. We can see there's obviously a storm brewing, a weather storm I ought to say, brewing behind you. We see the lightning.
IBE KACHIKWU: Absolutely.
QUEST: We see the lightning. We hear the thunder. I'm going to let you get off home before you get wet. My word, looks like a humdinger of a
storm tonight. I thought I better mention the lightning just in case you thought those flashes were related to something else behind the minister
were something else. Real big storm going on there.
Donald Trump says the U.S. faces unprecedented threats from ISIS and has called for what he calls an extreme solution. We'll hear about extreme
solutions and extreme vetting in a moment.
(COMMERCIAL BREAK)
[16:40:24] QUEST: Donald Trump says the U.S. needs extreme vetting of those seeking to enter the United States. And his anti-terror proposals
were outlined a short while ago. So stamping the visas, he wants to withhold visas from countries where the U.S. cannot perform adequate
screening. He'll introduce a U.S. values test for visa applicants and he wants to redefine allies as anyone committed to defeating ISIS. Howie Lind
is a retired U.S. Navy commander and now a director of Veterans for Trump. He spoke to me a short time ago.
(BEGIN VIDEOTAPE)
HOWIE LIND, RETIRED U.S. NAVY COMMANDER: He just crystallized what it's going to take and what it really means to crush ISIS, to defeat ISIS across
the globe. He outlined many parts of that. But principally it's to partner with other countries who are in this with us to defeat ISIS. And
they've killed 33,000 people over the last 15 years. And 80 percent of that has been in the last three years. So he has, you know, great plans to
do this. It's been said over and over, I know by other people, but it hasn't been done. This administration, the Clinton and Obama
administration hasn't done that.
QUEST: Right, but this idea that Mr. Trump says he will do it and will do it fast, as soon as he comes into office, it sort of assumes that somehow
all the other countries, Russia, the United States, the U.K., France, Germany, they haven't managed to do it. But he won't tell us how he's
going to do it.
LIND: Well, of course the first has to come into office. He talked about the commission on radical Islam that he'll form right away to determine why
people go to that ideology in the first place. But as far as militarily and operationally attacking them financially, in the cyber world too, yes,
he will do that right away. The military can do it. The United States military, as a former commander in the U.S. navy, I know there's the
capability to defeat this enemy of ours. We just have to commit to it.
QUEST: What you understand by this is an escalation, is what you're talking about in the battle?
LIND: Well, escalation is one word. I would say just executing a careful plan to defeat them. That's really what it's about. And the will to do
it. He has the strength, the stamina, the energy, the intellect, to carry that out, that Hillary Clinton does not.
QUEST: But he doesn't have the experience. She does.
LIND: Well, if you call Benghazi and her email scandal and the Clinton Foundation experience, I don't. Again, I'm a former military officer, and
all the veterans that I talk to, as well as law enforcement and across the country, believe in his viewpoints. They don't believe in Hillary
Clinton's failed policies, Barack Obama and hers, failed policies combined. That have caused the rise of ISIS. They cause the rise of ISIS and his
solution is to defeat it.
QUEST: On this question of values and testing values for visitors and for migrants and things like that, it's going to be very difficult to test
people's values who want to come and visit the United States, isn't it? It all goes back to the ridiculous question on the old visa form, have you
ever been a communist.
LIND: Well, I'd say face-to-face interviews I would guess would be one certain aspect of this. We have no idea who these people are coming in
from these terrorist type nations. So I that performing --
QUEST: Do you class France and Belgium as a terrorist class country, bearing in mind that there are -- that ISIS has infiltrated those
countries?
LIND: No, I do not call France and Belgium and the others our friends as terrorist nations. I'm saying that people who have maybe gone through
there from terrorist areas, yes, they should be interviewed and reviewed. Our whole immigration system is a complete mess. Our visa system is a
mess. So that's part of this whole thing, restoring our visa system. Interviewing and talking to local and federal law enforcement officers to
find out why are people being radicalized over here in the first place, that long list of all those calamities of mass shootings in this country,
in the United States. We have to stop that. Hillary Clinton will not stop that.
QUEST: Do you accept then, listening to what you're saying, there's going to have to be a sizable increase in expenditure on the visa interviews, on
the processes put in place. Even allowing for efficiencies and improvements and changing processes, there's going to have to be more
people doing the checking.
[16:45:03] LIND: Well, maybe so. But I think there will be a huge deterrent effect also. Don't you agree? If all of a sudden we say, hey,
we're going to be interviewing everybody who wants to come in here from these bad areas, I think there will be a huge slowdown in the numbers of
people that try to do that.
(END VIDEOTAPE)
QUEST: Today was all about Donald Trump's foreign policy and his military policy for ISIS. But the man often touts his success as a businessman. A
new CNNMoney investigation revealed that for one of his businesses, Mr. Trump's success came at the expense of his investors. CNN's Cristina
Alesci reports.
(BEGIN VIDEOTAPE)
CRISTINA ALESCI, CNN CORRESPONDENT (voice-over): When it went public in 1995 Donald Trump's first and only public company raised $140 million from
investors. A decade later Trump hotels and casino resorts was bankrupt. A record not lost on this famous stock picker and Hillary Clinton supporter.
WARREN BUFFET, CEO, BERKSHIRE HATHAWAY: Believe who believed in him, that listened to his siren song, came away losing well over 90 cents on the
dollar.
ALESCI: Investors lost out. But Trump made millions, even as the company's losses mounted. A CNNMoney review of SEC documents finds that
his salary, bonus and options totaled about $20 million over ten years. Another $18.5 million came from a web of deals. They were complex
contracts that paid Trump for consulting with his own company. Licensing deals in which the company paid Trump to use the Trump name and
reimbursement for the use of Trump's personal jet or his golf courses for VIPs. This may be a head scratcher, but these kinds of third party
transactions happen all the time, and they're totally legit.
DAVID BECHER, ASSOC. PROF. OF FINANCE, DREXEL UNIVERSITY: Lots of companies have these. Some of them are very small. Some of them are quite
more complex. So this is quite usual, to have these. But you have to be very careful in reporting them to make sure that you're letting the public
and your shareholders know what's going on.
ALESCI: the company did have a special committee to approve these kinds of deals. But its members had other ties to Trump. While that might raise
eyebrows today, it was actually pretty commonplace two decades ago.
BECHER: Go back and look at the financial statements of lots of companies, and they had a lot of their boards filled with insiders, people who worked
for the company. Nowadays we would view that as a conflict of interest. But simply back then it was a much more common practice.
ALESCI: Twenty-one years after he first sold shares to the public, Donald Trump is running for president on his strength as a businessman. The
campaign didn't respond to CNNMoney's request for comment. But it's pretty clear Trump considers the tale of his first public company a business
success.
TRUMP: I did very well in Atlantic City. Then I took the company public. I took, you know, a lot of money out of Atlantic City, which is what I'm
supposed to do, I'm a businessperson.
ALESCI: A businessperson who made millions from a money losing company.
(END VIDEOTAPE)
QUEST: Cristina is with me now. Not the first, and won't be the last.
ALESCI: No. And this plays into the narrative that Hillary Clinton is putting out there, that he leaves consistently, the little guy, who he's
supposed to be supporting, out in the cold. You heard Warren Buffett. He said, 90 cents on the dollar. What does that mean? If you invested $100
in his company when it went public in 1995, only five years later, you didn't have to wait the full decade, only five years later you would have
been left with about $9 while he's collecting millions and millions of dollars in fees, and not just compensation, but those complex fees. And by
the way, those fees are pretty typical, especially in private equity transactions. You see them a lot where investors buy entire companies and
then they charge their own investment for consulting and advertising and all kinds of management fees.
QUEST: When I hear this sort of tale, is it illegitimate? It may be legal to do it, but are these fees and expenses, are they put in for the purpose
of extracting money? Or is there a legitimate purpose behind them?
ALESCI: Absolutely 100 percent for extracting money out of a company. You can justify some of the fees, but a lot of them seem to be exorbitant. In
fact, this very issue came under an immense amount of scrutiny when you looked at the private equity guys and what they were doing with their
companies at the height of the financial crisis. This came under scrutiny. Investors did not like the fact that they were essentially draining these
companies through these fees.
To your point, there's supposed to be protection for the investor in the form of a committee that does not have ties to either the CEO or management
and, you know, the company itself. So there's supposed to be that protection. In this case, there seemed to have been conflicts of interest
in that layer of protection for investors. And since then, by the way, it's gotten much better, corporate governance has gotten much better.
[16:50:03] QUEST: They were different days.
ALESCI: Exactly.
QUEST: Good to see you. Thank you.
ALESCI: Absolutely.
QUEST: It can be very lonely at the top. Ask the man who runs the world's most valuable company. We'll be hearing about that in a moment, after
you've had a moment to think about how you would like to "MAKE, CREATE, INNOVATE."
(COMMERCIAL BREAK)
QUEST: Now, he is arguably the world's most powerful chief executive. He's Tim Cook, and he runs Apple, which as you are aware, is one of the
world's most valuable companies. Now he's been telling "The Washington Post" who he calls for advice. When asked his different advisors, he says
he looks to Warren Buffett about when he should return cash to shareholders. But then he turned to Anderson Cooper for advice about how
to announce that he was coming out as gay. And then he turned to Goldman Sachs' chief executive Lloyd Blankfein, about how to handle testifying to
congress. Cook admits it's lonely at the top. When you're CEO, there's nobody anybody really can turn to. Our global affairs and economic analyst
Ali Velshi joins me now.
ALI VELSHI, GLOBAL AFFAIRS AND ECONOMIC ANALYST: Good to see you, Richard. You remember some years ago, I think that the Lloyd Blankfein thing is
interesting. Some years ago in the midst of the financial crisis Lloyd Blankfein said in response to a reporter question that Goldman Sachs and
people like that are doing God's work. And he suffered a lot of consequences for that, although he lived to fight another day. When Tim
Cook said it's lonely at the top, he quickly added, but I'm not asking for sympathy. CEOs don't deserve sympathy.
QUEST: I noticed he immediately qualified it, I'm not asking for sympathy. But the truth is, every CEO I've met who had a second and third rank
beneath it, they all say the same thing. Nothing prepares you for the moment when you sit in the top desk.
VELSHI: For the consequence of the decisions that you finally make. All of us who are not CEOs always have advice for CEOs. And he is saying that
there is -- I thought it was very -- it was an honest conversation. He's not one who uses a lot of jargon, he speaks regular speak. And he was
saying he didn't think he would be CEO, really he always thought Steve Jobs would bounce back. And it is really privileged and difficult for him to be
the main guy at Apple.
QUEST: Do you find, and we talk about CEOs generally, and you and I have met more than our fair share of them. They do get this shock when -- you
could be the COO, the CFO, the CMO.
VELSHI: You can be right there in the room all the time. There's two kinds. There the kind that believes they should always have been there.
Some of the get arrested. Some of them lead their company down a bad path.
[16:55:00] Some of them are really rich and think it's preordained. And then there's a second set, and they do tend to be smaller, of people who
understand the gravity of the challenge of being answerable to employees, to customers, and to shareholders. It's a difficult job.
QUEST: But the general rule is that those who have been number two tend not to make particularly good number ones.
VELSHI: Right. And in the case of Apple, this was a tough thing to follow, because nobody thought anybody was like Steve Jobs in terms of his
genius and creativity. What Tim Cook has done is he's made Apple a nicer place to work. He's made Apple a friendlier company.
QUEST: But is the jury still out?
VELSHI: Sure. His big thing is the Apple watch. We're big tech guys and we don't have Apple watches. Just a basic, simple watch.
QUEST: There is nothing basic and definitely nothing simple about yourself. Ali Velshi, how wonderful talking to you. That's a nice bit of
a watch. You've got the whole thing.
VELSHI: The whole thing going on there.
QUEST: I'll have a Profitable Moment after the break.
(COMMERCIAL BREAK)
Tonight's Profitable Moment. Ali Velshi was right, CEOs come in various different sizes and guises. But from all of those that I've met the most
successful always seem to have one thing in common, they have a vision of where they want to lead a company in good times and in bad. And the most
classic example of that and one of the best exponents, I think, was Alan Mulally, who came from Boeing and then went on to Ford and led that company
to greatness in extremely difficult circumstances. Being CEO is not easy. They don't expect sympathy. The get paid a bunch of money. And they must
never forget, when the buck stops, it stops with them.
[17:00:07] That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's
profitable. We'll be together tomorrow.
END
