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QUEST MEANS BUSINESS
Olympic Organizers Giving Away Tickets to Fill Seats; 12% of Rio Paralympic Tickets Sold; Olympic Sponsors Protected by Strict Rules; Wharton: Trump's Immigration Plan Would Kill 4 Million Jobs; McCaughey: U.S. Taxes "Killing the Economy"; U.S. Stocks Fall from Records; New York Fed: September Rate Hike Possible. Aired 4-5p ET
Aired August 16, 2016 - 16:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] RICHARD QUEST, CNN ANCHOR: Good day on Wall Street. The Dow Jones is down 85 points. The gavel is about to be hit to bring trading to
a close. You call that a true, firm gavel, bringing trading to an end on Tuesday, the 16th of August.
Tonight, half empty stadium, half empty bank accounts. New problems for the Rio Olympics and the Paralympics. Mario Monti say Europe is at risk of
disintegrating. The former Italian prime minister is on this program today. And Google's dynamic duo is in a face-off with Facetime.
I'm Richard Quest. We have an hour together. And of course I mean business.
Good evening. Thank you for making time to be with us for our nightly conversation on business and economics. And we begin tonight with no
medals for ticket sales in Rio. Attendance at key marquee events have been sparse and ticket sales for the Paralympics are positively dismal. In an
effort to fill seats -- and just look at these numbers -- look at these pictures while were just considering these facts. You can see row after
row, in fact whole blocks of the stadium are absolutely empty. Well, the organizers have now resorted to giving away Olympic tickets to samba
schools that took part in the opening ceremony. Don Riddell is at the Olympic Park. Don, give us -- I don't want to sound carping but this, but
the pictures do tell the story. How bad is it?
DON RIDDELL, CNN WORLD SPORT: Well, it's not great. I mean, I was in the Olympic stadium to see Usain Bolt win his sensational 100 meters the other
night. I will say that that was full. That was a relief, because that's the marquee event of every Olympics. It would have been a real crying
shame if it was half full. I've been to many events and I don't think any of them apart from that event have been close to a sell-out.
I will say that the atmosphere in some of the arenas has still been very good. But there are a lot of empty seats. That is not good on so many
different levels. I mean, for the IOC, which packages this event and sells it to broadcasters around the world for a lot of money, it doesn't look
good when the stadiums are half empty. You take the Premier League for example, and we see what a massive financial success that has been. One of
the reasons for that, Richard, is because all the stadiums are absolutely packed. It looks like everybody's having a great time. The atmosphere
comes through on the screen and that becomes a part of the package.
This is not what the Olympics would have wanted. And I can't understand why it's taken the IOC and the local organizers so long to effectively give
these tickets away, because I've been having this exact conversation with my friends and colleagues here for well over a week now. It feels as
though we're pretty close to the end of the Olympics and they've only just figured out, you know what, let's give them away and fill the stadiums and
give young people a chance to experience sport.
QUEST: Was this in a sense inevitable, in the sense that unlike London, where you've got 70 odd million people in the United Kingdom, but you've
got several hundred million just across the English Channel who can be there in an hour or five to sort of make up the numbers, and you have a day
trip or weekend away. Getting to Brazil is expensive and it's a long way pretty much from most places.
RIDDELL: Well, that's true. So you're counting on the locals to come. And we all know about the problems that Brazil has experienced over the
last few years. I mean they were awarded the Olympics seven years ago. As you know, a lot has changed in that time. At that time, Brazil was an up
and coming economy. It was one of the brick nations, everybody was excited about the future of Brazil. But of course more recently we've seen the
government in turmoil and the economy collapse.
And a lot of people here just aren't interested in the Olympics. And even [16:05:00] if they were interested in attending sporting events, that
doesn't necessarily mean they can afford to go. I will tell you the lady sitting next to me at the 100-meter final paid only $120 for her ticket.
If that was being held in the United States, that would be an absolute snit. Here, $120 is still quite a lot of money. And I think a lot of
people here are finding it very, very difficult to go to these events and support them, especially when a lot of the events, which make up the magic
of the Olympics, are not necessarily the kind of thing you would want to see, like badminton or table tennis or weightlifting.
If you're not a fan of those sports, maybe you're not going to want to go. But the kind of people that do enjoy the Olympics really don't care what
they're seeing because they know it's all a part of the games and it's going to be very entertaining. But I guess for people who are struggling
financially, that's becomes a harder sell.
QUEST: Thank you, Don. I remember very clearly in London lots of people sort of -- in the balancing, saying I only got tickets for weightlifting
but I'm going anyway. Don, thank you, sir, good to see you.
The other side to our Olympic story tonight from Rio are the problems spilling over to the Paralympic games. Now they are to open in 22 days'
time. If you think the situation is bad for the main able-bodied games at the moment, where there are depleted stadia, now organizers are racing to
sell tickets and close a huge budget gap. So you've got -- this is the way the situation is at the moment. So far, only 300,000 of 2.5 million have
been sold in Brazil for the Paralympics, even though the cost for most of them is just barely $3. If you compare to London which also -- there was a
moment for London where there was a crisis for the Paralympics in terms of the number of tickets sold. London at this point had sold seven times as
many tickets and smashed the record. Now, in the end, it ended up selling 2.8 million tickets, and had to add on extra seating. But in Rio, the
organizers are struggling even to get funding, to get to the starting line. And some athletes are depending on the funds for traveling. And now the
Brazilian -- it's a real mess because the organizers are providing some of the money for the Paralympics to get there. But the Brazilian court is
blocking the cash from being disbursed. The organizers are still hopeful they can recover from rather slow and some might say is a pathetic start.
(BEGIN VIDEO CLIP)
MARIO ANDRADA, SPOKESMAN, RIO 2016: What has affected the Paralympics in terms of financing was, obviously, low ticket sales, lack of sponsorship.
We understand that with late too soft of ticket sales for Olympics, we'll be able to sell more Paralympic tickets. So it's yet to be found how much
money will be needed for the Paralympics.
(END VIDEO CLIP)
QUEST: Joining me now Baroness Tanni Grey-Thompson, a former wheelchair racer and winner of 11 gold Paralympic medals. Your ladyship, thanks for
joining us. How concerned are you, when I look at these numbers at the moment? Because dependent upon these sales, depends upon so much of the
money that is used to get the Paralympic athletes to the games.
TANNI GREY-THOMPSON, 11-TIME PARALYMPIC GOLD MEDALIST: I think the first priority is to make sure that the support goes to the countries. There's
50 countries that need the money to get the athletes to the games, because a depleted Paralympics will be a real struggle. London was amazing, and
each cycle of the games moved forward. But Rio is really crucial for the next stems for the Paralympic movement. And you're talking potentially
4,000 athletes that could be affected if this money doesn't come through. With 22 days to go, we're kind of running out of time for that money to be
QUEST: Now the mayor of Rio says the money is there, and that what's preventing it being disbursed are legitimate anticorruption regulations on
transparency. Many of these national Paralympic organizations have to be able to prove how they're going to spend the money so it doesn't disappear
into somebody's pocket. It is a valid point there.
GREY-THOMPSON: It is a very valid point. But actually this probably should have been sorted out several weeks ago. And I think the
International Paralympic Committee got to the point where they had to go public with it to make sure it moved on. Because the reality is the
athletes are going to be starting to leave their countries in the next week or so to be in Rio ahead of the Paralympic games. And they'll going to
start losing their flights. They'll be limited availability. That could be a real problem. And I think the other thing is the ticket sales will
also be a quite a challenge, because, you know, it's hard to compete in front of very few people in London and in other games like Beijing. The
huge number of ticket sales really spurred on the athletics performances.
[16:10:05] QUEST: I understand the blame game, whilst it might be good television, is fruitless in solving the problem. But why do you believe
these numbers that we are looking at the moment, 300,000 versus, say, 2.3 up to 2.8 million. What do you think has gone wrong here, your ladyship?
GREY-THOMPSON: I think it's a combination of lack of sponsors and maybe just not pushing the tickets hard enough. In London what happened was the
Olympic tickets went on sale first, it generated this huge amount of interest. And then they put the Paralympic tickets on sale. And then
there was a big, in the last two weeks of the Olympics, there was a big push on Paralympic tickets.
What's surprising is that Rio and Brazil are a really strong Paralympic nation. Five years before the opening ceremony of Rio they had a huge
party in Rio, 150,000 people turned up on the streets. So I don't think we expected this sort of reluctance of people to buy tickets. But if you look
at the economic crisis there, the reality is, if you've not been paid this month and you're struggling to feed your children, you're not going to be
buying tickets for either the Olympics or even buying very cheap tickets for the Paralympics.
QUEST: Finally, I insist on ending on a more positive note. We've seen some marvelous sport and some great records and some superb athletic
achievements. From your knowledge of the current state of Paralympic athletes, when they start competing, are you expecting to see key
victories, records broken, superb examples?
GREY-THOMPSON: I think what we are going to see is incredible sport, brilliant achievements. There's more media coverage than ever before. And
four years on from London, we're seeing even more talented athletes. So I think the sport is going to be good, and actually the athletes will just
ignore all this politics. They're not interested. They just have to concentrate on being the best they can be. But come the start of the
games, it will be fantastic.
QUEST: Thank you for joining us, good to see you your ladyship. Thank you very much for putting it into perspective. We'll watch the numbers very
closely in the days ahead.
Now the competition between the athletes is fierce. Olympic sponsors have the field to themselves. After all, just think about it, you've paid
billions of dollars for the privilege of sponsoring and having your name attached. But of course, think about it. If your company is attached to
the Olympics, you want to make jolly certain that the competition is not. Shasta Darlington reports.
SHASTA DARLINGTON, CNN CORRESPONDENT: Whether you're over in the Olympic Park or here in the Olympic Fan Zone, what you won't find a whole lot of is
brand competition. That's because the only refreshments you can buy are the Coke brand, the only beers, Brazil's Skol. In fact, the city of Rio de
Janeiro has turned into one big advertisement. Here at the megastore you can get your Rio 2016 mascots. But the only official sporting brand you'll
find is Nike. And the only card they accept is Visa. All these companies and more have paid big bucks to be official sponsors of the Olympics.
Competitors are nowhere to be found.
PETER SHANKMAN, SHANKMINDS BUSINESS: Advertisers have paid anywhere from 4 to $6 billion overall to be involved in this year. So it makes sense that
the Olympic committee will want to protect that investment for the advertisers.
DARLINGTON (voice-over): Staging the Olympics is expensive. The Olympic committee needs the money big advertisers bring to the table. To help
protect their official brands and guard against what they call over commercialization, the IOC has rule 40, which restricts athletes' ability
to mention companies on social media if they're not official sponsors. There are also strict rules on what you can or can't say about the Olympics
SHANKMAN: If you are not an official sponsor and haven't been given clearance to say that you are an official sponsor, you can't say things
like "Olympics" or "gold" or "silver" or "bronze" in conjunction with your advertising.
DARLINGTON: There are ways unofficial brands get around these regulations. Under Armour's, Rule Yourself, spots starring superstar Michael Phelps make
no mention at all of the Olympics. General Mills puts animals through their paces in track and field this summer in a so-called rabbit showdown.
And Google's home page features the doodle fruit games. Amid all the restrictions, some are fighting back.
SHANKMAN: When Donald Trump and the Pope both tweeted about the Olympics, the rule 40 twitter account said please cease and desist from wishing good
luck to our athletes as you are not an official licensed sponsor. It was obviously parody and was designed to mock the IOC for the draconian rules.
[16:15:03] DARLINGTON: Don't expect the Olympic committee to change its rules anytime soon as it moves to protect its profitable brand. Shasta
Darlington, CNN, Rio de Janeiro.
QUEST: Oh, the Olympic rings. Now, as we continue talking about Donald Trump, his economic plan has received much scrutiny and a great deal of
criticism. After the break, one of his economic advisers joins us to tell us why it's not as bad as the critics suggest. The plan, that is. In a
QUEST: Donald Trump's alma mater has a gloomy prediction for the Republican presidential nominee's immigration plan. It's the University of
Pennsylvania's Wharton School and it estimates that the plan to deport 11 million undocumented workers would actually kill 4 million jobs by 2030.
In comparison, it says Hillary Clinton's proposals create a pathway to citizenship and would cost around 400,000 jobs in the same period.
The whole question of Donald Trump's economic plan is now very much under debate and discussion. In just a moment, we're going to be talking to one
of Mr. Trump's economic supporters and on his economic council of advisers who will be telling us why the critics perhaps are wrong. But first
though, Cristina Alesci is with me to dissect and to set, if you like, the parameters for our discussion. Cristina, what do the critics say about Mr.
CHRISTINA ALESCI, CNNMONEY, CORRESPONDENT: Well, let's put the immigration stuff on the side for a second because it's economics. So let's stick to
taxes, trade, regulations, three big tenets of his policy. On taxes, Mr. Trump came out and said he's going to reduce taxes for everyone,
essentially, three tax brackets, 12, 25, and 33 percent. If you remember, when he came out with his original plan, that top bracket was at 25
percent, and most economists and experts said it would cost an extra $10 trillion, add an extra $10 trillion to our national debt. So he's revised
that. Most experts say it will cost less but still cost us a lot of money.
On trade, he's saying that he's going to implement strong protections against currency manipulation and he's going to put tariffs on cheaters.
How were going to do that? Still a little bit fuzzy on all the details, but most pro-trade people will say this does not account for the fact that
we are losing manufacturing jobs because of innovation and technology improvements, which is plan does not really address. Third, regulation.
Every business in the U.S. is really happy to hear about less and less regulation. Big, medium, and small businesses want more of this. The
problem is that Trump is saying that regulation under Obama has cost America jobs. That's not necessarily true. When you look at the energy
sector, a lot of these jobs have been lost because of the price of oil. Now, "The Economist."
[16:20:02] QUEST: Yes, "The Economist."
"The Economist" came out with a very strong anti-Trump message. They're a free trade publication, basically saying ".his proposal threatens the jobs
and living standards millions of Americans. Rarely has a candidate been less deserving of such a leap of faith."
QUEST: That's the background. Thank you, Cristina. You been watching these things. Now let's talk about this with -- Thank you very much
Cristina. Betsy McCaughey is a Trump supporter who is listed as a member of Mister Trump's economic policies. We're talking taxes. You heard
Cristina Alesci putting into perspective the tax plan.
BETSY MCCAUGHEY, TRUMP SUPPORTER: She left out the most important part of the tax plan, which is the reduction in corporate tax rates. That's what's
killing the economy. American companies paid the highest corporate tax rates in the world, not just nominally at 35 percent, but across the board,
the average is about 27 percent. Much higher than other countries in the world.
QUEST: The Committee for Responsible Tax, whatever the foundation is, says that that tax cut on the corporate tax will raise the deficit by $2.3
MCCAUGHEY: It will not. Let me explain why. And in fact the tax foundation has demonstrated why it will increase revenue over the course of
a decade. We collect about $273 billion a year in corporate income taxes. But when you lower corporate tax rates, you increase business activity.
Companies invest more in the tools that labor uses. Wages go up. Income goes up. Corporate income goes up. And as a result -- just a moment -- as
a result, tax revenues go up. You see an increase in the payroll tax. You see an increase in individual income tax revenues. And over the course of
a decade, you will see a $400 million per year increase in total tax revenue.
QUEST: But in Donald Trump's plan, not only is he cutting the corporate level, he's cutting the income tax level as well.
MCCAUGHEY: That's right. I do want to make one more point about this.
QUEST: Before we get to your other point, if we may. And at the same time, he's increasing expenditures on things like defense whilst protecting
MCCAUGHEY: That's right. Very much of what Ronald Reagan did.
QUEST: Yes, and he ballooned the deficit. He ballooned the deficit.
MCCAUGHEY: That's right, he did. But over the course of a decade he produced enormous prosperity. Here is where I'm coming from on this.
Voters this time around have a choice between class warfare and economic growth. I'm choosing growth. And here's why. 8 million more people are
living in poverty today than when Barack Obama took office, 14.5 percent of our people are living in poverty. And why? Stagnant wages --
QUEST: Hang on a second. But the entire Trump plan rests on greater economic growth.
MCCAUGHEY: That's right.
QUEST: And nobody has ever seen the level of growth necessary to make up the shortfall for tax revenues by lowering taxes. So a question, do you
accept that in the short term this balloons the deficit?
MCCAUGHEY: There's no question that it does. But Americans will be better off. They're enduring very stagnant wages. And when you --
QUEST: That's not true. The wage growth has risen. If you look at the last numbers, wage growth is up 3 to 5 percent.
MCCAUGHEY: It's not satisfactory, and you know it. And more or less, more than that, our economy is now limping along at 1.2 percent growth despite
robust consumer demand. Why because businesses are not investing.
QUEST: No. No, no. With respect. I accept that 1.2 to 1.5 percent growth is subpar. But --
MCCAUGHEY: Subpar? We can't survive with that. Reagan's recovery was 4.5 percent.
QUEST: They were different eras with different economics. And if you take the U.S. --
MCCAUGHEY: We can get back to that. We can get back to that level of growth.
QUEST: Not when you've got the EU growing at less than 1 percent.
MCCAUGHEY: Ireland grew 7.8 percent last year.
QUEST: That is completely fallacious and you know it, because Ireland was coming out of a dramatic recession, and it was a bounce back as a result of
MCCAUGHEY: Look at their corporate tax rate, 12.5 percent.
QUEST: Yes, and look at what's happened with Ireland and its corporate tax rate at 12.5 percent. And look at what the U.K. is proposing to do because
MCCAUGHEY: Slash rates. They're all slashing rates to be competitive except the United States where Hillary Clinton is running ads saying
corporations ought to pay their fair share. That's the most demagogic ad I've ever seen. Americans ought to know corporations are paying the
highest rates in the world.
QUEST: So do you also support, along with this, measures to, for example, allow the repatriation of overseas money?
MCCAUGHEY: Oh, yes, that's a very good idea. Because the temporary repatriation -- I'm glad you brought that up -- will bring in $2.1
trillion, which will enable companies to invest that here in the tools of productivity.
[16:25:00] QUEST: Why go for, other than, frankly, political philosophy --
MCCAUGHEY: I like your spirit, by the way.
QUEST: Well, I can admire yours as well. The estate tax. Inheritance tax, death duties, whatever you want to call it, you accept, you must
accept that it will only benefit the truly rich.
MCCAUGHEY: Well, it will benefit people who start small businesses and want to pass them on to their children and farmers. This is a major issue
in the agricultural parts of the nation.
QUEST: You can change the rules to allow for farmers without giving Donald Trump and his family a $4 billion advantage.
MCCAUGHEY: You're falling for that class warfare rhetoric, you know, it's kind of silly.
QUEST: No, I'm not. It's a fact. God forbid Mr. Trump --
MCCAUGHEY: If somebody works their whole life to build a drugstore chain or a farm, why should they have to sell it because the estate tax at 50
percent was taking half of it?
QUEST: Why give the truly rich a tax break at the same time?
MCCAUGHEY: They've already paid taxes on their income.
QUEST: Well, what I hope is that you will come back to discuss other aspects.
MCCAUGHEY: It's a deal.
QUEST: There's a lot more we need to get to.
MCCAUGHEY: Absolutely. Next time, regulation.
QUEST: We might talk about regulation. We'll regulate the regulation. Thank you so much. I'm exhausted.
On Wall Street, stocks fell from Monday's record. Paul La Monica is at the New York stock exchange. Paul, what particular reason, why did it go up
like a rocket yesterday and stay there and today comes down like a stone?
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: Yes, well, let's put things in perspective here. I don't want to sound as combative as your previous
guest, but the selloff wasn't that dramatic. And we are coming off of record highs. I think the reason for the slip today, investors now got a
wake-up call from one key Fed member, Bill Dudley of the New York Fed, saying a rate hike is possible in September. I think most people have
written off the possibility of a rate hike because of what your last guest was talking about, namely the presidential election. Everybody thinks the
Fed is on hold until December or maybe 2017. A rate hike next month could rattle the markets upset the apple cart.
QUEST: Now on this question of a rate hike, I mean, I seem to remember, I think it was George Bush, you'll correct me, I'm sure, our guru, the Fed
has raised rates during, in the immediate preview up to the election. So it's not against doing that. But it would be less than desirable in this
very febrile environment.
LA MONICA: Exactly. The Fed is apolitical. It tries its best to not look partisan. And you are correct, Richard, George Bush, George W. Bush's
father, in 1992, did think that possibly one of the reasons for his loss was that you did have interest rates going higher at a time when the
economy seemed to justify it. I think the Fed will act if they need to. But right now, when you look at what every other central bank around the
world is doing, the Fed is hard-pressed to have a legitimately good reason to raise rates when they're near zero or negative just about everywhere
QUEST: Paul La Monica at the stock exchange. We are grateful for you being there tonight. Thank you, sir.
LA MONICA: Thank you.
QUEST: The talk of a possible Italian banking crisis, perhaps it's just a smokescreen. It's designed to deflect attention away from the real culprit
of what's happening in Europe, Brexit. The view of the former Prime Minister of Italy, Mario Monti will talk about that and the health of the
Eurozone as QUEST MEANS BUSINESS continues this evening.
[16:31:06] QUEST: Busy days, hello, I'm Richard Quest. There's more of QUEST MEANS BUSINESS in just a moment. When I'm going to be talking to the
athlete who won gold at the Olympics and lost on "The Apprentice." And Instagram loses one of its most powerful users, Justin Bieber. Will tell
you why in just a moment. Before all of that, you're watching CNN, and of course this is the network where the news always comes first.
A British court has found extremist cleric, Anjem Choudary, guilty of inviting support of ISIS. Choudary has pledged allegiance to the ISIS
leader an associate of Abu Bakr al-Baghdadi in 2014 and the authorities say his jihadist rhetoric inspired Britain's to fight on the terror groups
behalf. He is to be sentenced next month.
Russian forces have loaded bombs and missiles on their planes and taken off for Syria from an air base in Iran. It's the first time I ran has opened
one of its bases for the Syrian war. Russia has been striking the groups fighting the Syrian president Bashar al-Assad. Both Russia and Iran are
supporting the Assad regime.
The United States has transferred 15 prisoners from Guantanamo Bay to the United Arab Emirates. Most of prisoners are from Yemen. It's the largest
prison transfer from Guantanamo since president Obama took office.
The eldest son of the drug lord known as "El Chapo" may have been kidnapped in Mexico. The family's attorney, says it's likely his son was abducted
from a restaurant in the town of Puerto Vallarta. The local attorney general says Ivan Guzman is among 16 people who were taken.
Brazil's women's football team is out of the Olympics. They lost on penalties to Sweden after a goal at semifinal. It's a second shootout
victory for the Swedes. You will recall, of course, they knocked out the United States also on penalties. And now they will play either Canada or
Germany in Saturday's final.
The former prime minister of Italy, Mario Monti, says fears of an Italian banking crisis are exaggerated. Italy's banks have amassed billions of
dollars in bad debts, as you can see if you look at the players. Unicredit and Intesa Sanpaolo are Italy's two biggest banks, the shares of both have
fallen dramatically over the past 12 months. Monte dei Paschi has already been bailed out and the prospect of further bailout funds for that bank are
on the horizon.
Mr. Monti joined me from Italy on the line. And he says the Eurozone should be more concerned about Brexit than Italy's banks.
MARIO MONTI, FORMER PRIME MINISTER OF ITALY: Italy has been having for a long time now, a lower growth rate than the rest of the Eurozone, which has
not been brilliant, on the other hand. I think the fear now about the possible banking crisis out of Italy is slightly exaggerated. I see almost
a wish on the part of the Anglo-Saxon world to deflect the attention a bit from Brexit.
Now, Italian banks of course have quite a lot of nonperforming loans due to the sluggish economy. That is not exclusive of Italy. On the other hand,
Italian banks had been traditionally highly exposed, highly invested in government bonds.
[16:35:00] And the risk that there would be a knock-on effect against the banks from a potential default of the Italian treasury has been deflected
and killed four years ago now.
QUEST: Do you still see Brexit as being the principal risk at the moment facing the European Union?
MONTI: Yes, indeed. Not so much in terms of financial risk, because Brexit will have deep seismic consequences on the European Union and its
politics, and its economy, but they take rather longer. Now, the most imminent risk as far as Brexit is concerned is that it could push
indirectly for some disintegration of the European Union. I'm sure the U.K. will be extremely capable of seeking their own interest in the
negotiations after Brexit, which is fair enough. But I'm afraid that the other 27 will be quite tactically diverging from over here on the stance to
be held vis-a-vis the U.K. And I believe that the U.K. should be treated very fairly. We all have an interest in an excellent neighborhood
relationship with the U.K. But the U.K. cannot really dream of being in the single market, having the advantageous out of that, and yet not being
in the European Union.
QUEST: When we talk about the United States, how concerned are you at what you hear and what you see with the U.S. political season? Donald Trump.
MONTI: Donald Trump is a magnet for concern, as it were, also because he represents to the most vocal possible degree, the phenomenon about populism
which is there also in all western-style democracies including of course in European countries, and which in my root is at the root of the very visible
crisis of the European Union right now.
That is not in my view a crisis of the EU institutions sitting in Brussels or Frankfurt. It is a crisis in the 27 national capitals. Now, when we
see Trump, we see how deep the phenomenon of rejection of globalization, rejection of international corporation, rejection of the notion that well-
informed government can handle problems. And this is a problem of course for everybody.
QUEST: Mario Monti joining me in talking about problems in Europe. The European stock market closed firmly in the red. Investors reacting to the
U.K. inflation data, the biggest rise in consumer prices since 2014. Of course that's likely to get even worse, the U.K. inflation, with the
devaluation of the pound, which will import more inflation into the country. The mining giant BHP Billiton posted a record $6.4 billion loss.
You can blame amongst many of the reasons of course the extra costs for dealing with the Brazil dam breach crisis, which still has many places to
Visa is hiring, if you're interested. Now these are the qualifications you'll need. A bachelor's degree and an Olympics background. So what is
it about an Olympics background that makes people so desirable as an employee? We'll talk about it, next.
[16:41:18] QUEST: Early in the program, Shasta Darlington told us all about how Visa is one of the sponsors, the credit card. Visa is enjoying
the sprinting master class in Rio. The financial services company is sponsorship deals with Jamaican legend Usain Bolt and South Africa's latest
poster boy, Wade Van Niekerk. Now they're talking about going to step further. Visa has launched a recruitment drive for Olympians only. It
says it will announce at the end of the Olympics nine Olympians that it's offering jobs for. Angela Ruggiero is an ice hockey Olympic champion from
1998, as an ambassador of Visa's program. She joins me from Rio. I'm curious, Angela, first of all delighted to have you with us from Rio, but I
am curious. What do you think an Olympian, besides stamina, strength, sport, integrity and those wonderful qualities, why are you so employable?
ANGELA RUGGIERO, ICE HOCKEY OLYMPIC CHAMPION, 1998 OLYMPICS: Well, it's a great having. Thanks for having me, Richard. Athletes learn their entire
lives how to be focused, how to work with a team, how to set goals, how to work hard, show up on time. All these intangibles. The list can go on and
on. It's great because we can then apply those skills to any other job in the world. And with Visa's support here, I think it's usually hard to get
your first job, especially after you've been training, and again, really focused on achieving an Olympic gold medal. So that transition could be
hard. But I think every Olympian has that base skill set that, again, you can apply anywhere, and I think will be just as successful.
QUEST: Let's pause, Angela, for a moment. As part of your post-Olympic career you actually appeared on "The Apprentice." We're going to bring all
the sections of our news coverage together, Donald Trump. Let's just enjoy a moment of Mr. Trump describing the candidates that he had on "The
(BEGIN VIDEO CLIP)
DONALD TRUMP, HOST, "THE APPRENTICE": I'm looking for someone who's a sharp negotiator. I'm looking for the apprentice. Right now, these 18
candidates are about to embark on the world's toughest job interview. They're the best and the brightest. Lawyers, business owners, internet
executives, even an Olympic athlete.
(END VIDEO CLIP)
QUEST: Now, as the Olympic athlete, you got fired further down, but when you were against -- let's be honest here Angela -- when you were against
all those other candidates do you feel the dedication and the commitment of reaching sport gives you an advantage against them? They just don't know
what it's like to actually have that gut-wrenching, tear jerking, absolute level of exhaustion.
RUGGIERO: Absolutely. I mean, any athlete that's competed at a high level, it takes a lot of dedication to get there. Again, you have to work
hard. You have to set goals. You have to work with others. Even when I was on "The Apprentice," I knew I had intangible skills they may not have
had. I was playing in front of millions of people and they may have been an intern at the time. I used to pressure, and again, trying to apply that
whether it was in the boardroom or in this case any job thereafter.
[16:45:00] QUEST: I can understand in certain cases Olympians are team players, particularly if it's a team sport like hockey or football or
something. But many Olympians are dedicated to the point of destruction in terms of their self and individuality, aren't they? It is you against the
RUGGIERO: Yes, but you know what, sometimes those individual skills, again, are just as applicable. And, you know, it does take a good
employer, it takes a good support system, your coach. It takes sponsors, it takes a lot of people to help round out that athlete, so they aren't
just focused on one thing. They can kind of see the bigger picture.
QUEST: Finally, come on, be indiscreet, tell me, if there was one sport or one discipline or one championship within the Olympic sporting movement,
which would make the best employee? Track and field, swimming, diving, hockey? Which is the best?
RUGGIERO: I'm biased here, obviously, I have to pick ice hockey. Honestly, I think any Olympian, again, they inspire the world. They put
themselves out there. You see their range of emotions. You see them dedicated to a craft. And you see them at their best. So that's why I'm
really excited, Visa is helping and other sponsors are coming in and saying, look you've given so much to the world and we're going to try to
give back to you. Because it is a hard transition. You're in the limelight and everyone cares about you, when the lights go out, you have to
figure out where you're going to channel that energy. And so I do think they're great assets in any company, and I encourage other companies to
hire more athletes, more Olympians.
QUEST: We're grateful you came on the program and talked about it, thank you so much for joining us from Rio Tonight. Still to come, we have a very
busy program ahead. We're going to be making a call. Google comes calling. The company has launched its answer to FaceTime, after you've had
a chance to MAKE, CREATE, and maybe INNOVATE.
QUEST: I'm having a conversation with myself, which is probably the best way, that means I don't answer myself back. It's all about Google, which
is getting some facetime of its own, taking on Apple and Skype with a new app. It's called Duo. The name is a clue. It supports one-on-one
calling. Now unlike FaceTime, it is agnostic as to your operating system. So it will work on Android and Apple devices. The Lance Ulanoff is the
Mashable chief correspondent and he's the editor-at-large. So if you don't know about this. Look, come on, another way of making a call. But why
would I need it if I've got the Facebook one. I've got FaceTime. And I've got Skype.
[16:50:00] LANCE ULANOFF, CHIEF CORRESPONDENT AND EDITOR-AT-LARGE, MASHABLE: Well, OK, so Skype you certainly have on Android. FaceTime you
would not. You also have Google Hangouts, which is both on Android and IOS. But this is just an app from Google that does nothing but video
calling. So what's a big deal about this is you know the whole Google ecosystem. They have all your information. They have your Gmail account
and that's tied to your YouTube account and it's tied to your contacts., Everything is tied together. Now this is an app that uses your phone
contacts. So it really understands, oh, I'm just on your mobile device, and you call who you want. You don't have to call who's in your Google
QUEST: Right, but is the long term goal to somehow integrate it into the wider Google ecosystem?
ULANOFF: Well, I there's certainly a goal to put it inside of Android. Meaning that when you get Android, we're hoping that it is part of it.
That the app comes along with it.
QUEST: That makes sense.
ULANOFF: They have not said that they're doing that yet, but to me it makes perfect sense as well. And they don't want Face Apple to own this
this sort of mobile-to-mobile calling experience. Remember where Hangouts got its start, on the desktop.
QUEST: Right, I can understand. So FaceTime I don't really look at really, because I'm not quite sure the other person has got an IOS. It's
not going to be the default calling thing of choice. But have they built a better mousetrap do you think?
ULANOFF: They've built a similar mousetrap.
QUEST: A me too.
ULANOFF: Isn't that the way today, didn't we just have Snapchat Stories and Instagram Stories? If you can't buy something, or you can't get
everybody to just walk over to something you have existing, build something that's similar to what's out there. And I give google credit. They've
made this the most stripped down thing you can imagine.
QUEST: Brilliant, that means people like me can use it.
ULANOFF: Very easy for everyone. And because it uses your phone number and it uses the phone numbers already in your system, you don't have to
think about anything. You don't have to say, oh, please, are you on this, are you on google duo? No, they're on the phone, they're in your contact
list, they're there.
QUEST: You could of course just make a phone call. Thank you very much for being with us.
ULANOFF: It was a pleasure.
QUEST: How old fashioned of me. That was an original idea, make a phone call.
Many believers have had their worst fears confirmed. The global pop super star Justin Bieber has deleted his Instagram account, swoon. It follows
unpleasant comments Bieber received about his girlfriend, Sofia Richie, the daughter of Lionel Richie. Bieber's ex-flame Selena Gomez had told him to
stop posting pictures of Sofia. Now he decided more dramatic action was need. This was all that's left for his millions of Instagram followers.
Bruce Turkel is the Chief Executive of Turkel Brands and author of "All about Them: Grow Your Business by Focusing on Others." Does Justin Bieber
just look -- well, you tell me what he looks like. He had 70-odd million followers and he gets rid of the whole lot of them on Instagram because
he's in a bit of a snit about people saying nasty things about his girlfriend.
BRUCE TURKEL, CEO, TURKEL BRANDS: Thank you, Richard. Throw me under that bus. He has 70 million followers plus all my daughters' friends, now I'll
tell what you I think about him. Thank you very much. The truth is, this probably is not going to affect Justin Bieber very much. The folks it
might affect, believe it or not, is Instagram, because this could become a fad. Other celebrities could say, wait a second, I want to make a stand
here, and they could pull off as well. The ironic thing is what we'll find is Kim Kardashian is going to post on Instagram about Bieber leaving
Instagram, so it's not going to end.
QUEST: But what purpose does it serve in the sense of -- I mean, you might have assumed by now, with everything he's been through, that he might have
guessed that people say unpleasant things about him, admittedly -- and I'm sure since she's the daughter of Lionel Richie, she's seen a few unpleasant
things about her father or her family at some point. So I don't get where this has come from or where it's going.
TURKEL: Remember the old saying, Richard, if Justin Bieber falls in a forest and there's no one there to post it on Instagram, did he actually
fall? What we're going to find out is if either one of them are talents or simply celebrities? Because the social media machine feeds on celebrity,
not talent. You opened the show talking about believers. You notice there's no Kevin Mahogany-izers, or Clapton-ers or Pacino-ers, Pacino
because celebrity and talent are very, very different. This is going to actually prove if there's any profundity to his talent or in fact if he's
famous simply because he's famous.
QUEST: No, come on. He's a star in his own right and his music is widely acclaimed as being good.
[16:55:00] so from that point of view, I come back -- I'm going to round it up with the first question I started with. Does he look bad for doing it
or does he look gallant for saving the reputation of his young lady?
TURKEL: OK, now, let me add something else. I don't think it has anything to do with the reputation of his young lady. It has to do with money.
Follow the money. What happens every time he's on Instagram, is he builds Instagram's brand value and he builds their shareholder value. But they're
not paying him to be on there. So what he's looking to do, as so many other celebrities are, is to find that fine balance between monetizing who
they can bring to a platform and what they're worth. And if he can demonstrate that, in fact, Instagram has suffered because he's not there,
there might be something real. I pooh-pooh the whole idea of him gallantly throwing his cape across the social media chasm, to completely mix my
metaphors, and saving his young lady from dirtying herself with what the public things.
QUEST: Mixed metaphors couldn't be more perfect. QUEST MEANS BUSINESS is exactly the place where you can mix your metaphors and fall over your feet.
Bruce, good to see you in Miami tonight. Thank you for joining us.
TURKEL: Thank you.
QUEST: What a brilliant program it's been. We'll have a Profitable Moment after the break.
QUEST: Tonight's Profitable Moment. There is still time to rescue the Paralympics from what promises to be a very disappointing set of ticket
sales if not disastrous. And indeed the question of the funding crisis to get the Olympians to the Olympic Games or at least the athletes to the
games. As we heard from Angela Ruggiero today on the program, those who worked so hard to get to the Olympics, to take part, the dedication they
have shown, whether able-bodied or Paralympians, they deserve the chance to at least show what they've done. And none perhaps more so than those that
will be going to the Paralympic Games. Which is why the money must be sent so they can get there. And the ticket sales must be boosted so that the
crowds can create that atmosphere to truly recognize their dedication now.
And 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 do it again tomorrow.