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QUEST MEANS BUSINESS
Speedo, Ralph Lauren Drop Ryan Lochte; Closing Ceremony Marks End to Rio Games; Pressure Falls on Tokyo to Pull Off 2020 Games; EU Leaders Map Post-Brexit Strategy; Trump: "I'm Not Flip Flopping" on Immigration; Campaign Cash: Clinton has Edge Over Trump; Urjit Patel Named next Indian Central Bank Chief; Iron Maiden Singer Working with Air Djibouti. Aired 4- 5p ET
Aired August 22, 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: The bell ringing in the start of the new week. The Dow down about 22 points. I've got a good feeling. Yes,
look at that, I think you call that firm and robust, from the Department of the Interior. The start of a new week. It's Monday, the 22nd of August.
Tonight, Ryan Lochte loses his Speedos. The sponsors are dropping the Olympic swimmer.
Choppy waters for a post-Brexit Europe. EU leaders say the bloc will survive.
And the devil's in the details. Iron Maiden's Bruce Dickenson tell me how to run an airline.
I'm Richard quest. We start the new week together. I mean business.
Good evening. Ryan Lochte is running out of sponsorships. The swimmer has lost three major deals after admitting he made up a story about being
robbed at gunpoint in Rio during the Olympics. Now, an extraordinary sort of day, the Speedo deal was the first to go. Just a few hours later, Polo
Ralph Lauren said it would not renew its contract with him. And then that was followed by the Gentle Hair Removal which removed its own sponsorship
in a not so gentle way.
Lochte can find some comfort with a mattress company called Airweave. For now, it's staying with him. Let's look at the statements we've got so far.
First from Speedo. Speedo said, "We cannot condone behavior that is counter to the values this brand has long stood for. We appreciate his
many achievements and hope he may move forward, and learns from the experience." Clare Sebastian joins me now and has been following the
story. All three went today and Lochte said he respected the judgment of Speedo. Why did they all fire him?
CLARE SEBASTIAN, CNN MONEY REPORTING: Well, Richard, it's interesting. Because, obviously, there are several transgressions here. There's the
vandalism, there is the admitted drunkenness, but really what experts are telling me, what the key to this is the element of deceit, the lying. And
of course as you saw events unfolding over the last week, it was really only on Friday that Ryan Lochte came out and apologized and really only on
Saturday evening that we saw in that interview with NBC's interview with Matt Lauer, that he said that what he called the over exaggeration of that
story was what got him and his colleagues into that mess. That over exaggeration, some may call it over exaggeration, some might call it
outright lying. But that really, experts telling me, is what's so radioactive for these sponsors. And a very quick reaction from them today.
The Olympics has only just finished. Many believe they waited --
QUEST: But why get rid of him now rather than waiting for the USOC and the Swimmers Association, which have said they will be holding their own
disciplinary hearings into all of this when everybody is back home?
SEBASTIAN: I think, Richard, the sense is they want to get out in front of this. That that element of deceit is really toxic to their brands. And
there's also a school of thought that believes that actually Ryan Lochte is past the peak of his career and it's no longer as lucrative for them to
sponsor him as it was before. He only one metal in Rio. He won five in London. Yes, he has 12 overall, but he's always been in the shadow of
Michael Phelps his colleague, is the most decorated Olympian of all time.
QUEST: For sponsors overall, though, this is a tricky question, isn't it, the risk versus the reward. What do we know about this?
SEBASTIAN: Absolutely, it's one of the most complex questions that they face. The reward is so high when sponsoring individual athletes, that's
what these sports marketing experts have been telling me. But the risk is also extremely high. And the vast majority of contracts that they sign
have what are called morality clauses in them. They'll all be worded differently depending how profitable the athlete is. How is performances.
But there's definitely a risk associated with it and of course you sign these contracts so far in advance of these events that you do have to
calculate that years, possibly, before this happens. You don't actually know how it's going to be unfold. And there's the question of also
sponsoring the institutions. Should they sponsor, for example, FIFA or the IOC over an athlete, is that less risky? There was a school of thought
that used to think that. Obviously, with the events we've seen around FIFA the last couple of years, we're not sure that's risk-free either. So is a
very complex set of calculations, Richard.
QUEST: Clare, thank you. Joining me now is Bruce Turkel, the chief executive of Turkel Brans. And author of "All About Them: Grow Your
Business by Focusing on Others." Delighted to have you with us, Bruce. Why do you think they got rid of him? Was it the vandalism? Was it peeing
in the corner? Or was it because he told bare faced lies?
BRUCE TURKEL, CEO, TURKEL BRANDS: It's absolutely point three. It's an old saying in our industry, you don't get in trouble for what you do, you
get in trouble for how you handle it.
[16:05:00] What they're concerned about is his lack of judgment. Makes them look bad, makes the country look bad, but worse, makes everybody
wonder what he's going to do next.
QUEST: Right. But are we seeing an example here of it's not the action, it's the lie? You know, it's a cover-up afterward, it's the Watergate
syndrome. It doesn't matter what you did, it's a how you obfuscate it or lie about it afterwards.
TURKEL: That's exactly right, because that's what talks to character. He could have handled it better. He could have apologized sincerely, and as
we talked about, he could have put up some money to put a pool in a favela in the city of God and demonstrated how regretfully sorry he was. But as
soon as he tried to say, oh, no, not me, I had nothing to do with it. All of a sudden everything changed. Most athletes complain they get robbed by
the referees. But Lochte can only complain that he got robbed by himself.
QUEST: Do you think if he would've done that mea culpa with Matt Lauer and said, I'm going to go back there. I'm in a go back there. I'm going to
apologize. I'm going to build that pool. They would have stood by him?
TURKEL: Yes, I do. I don't know that he could have gone back, because once he steps back in that country, remember, he's guilty of a crime. He's
probably guilty of number of crimes. However, the bigger picture, if he had said to Matt Lauer, I screwed up, I get it, here is what I'm going to
do, everything would have different.
QUEST: Now, I just want to put one point to you that I've been getting myself very excited about today.
QUEST: The companies involved, if we look at Speedo's statement and we can call it up again, you can see what Speedo said, they basically were very
weak-willed about it. They sort of wishy-washy said -- I'm just looking for the exact words -- they basically said, "We can't condone behavior that
is counter to the values this brand has long stood for... We appreciate..." blah, blah, blah. I mean, wouldn't they have been better to say, we don't
condone lying, he lied. Instead of this wishy washy values, brands, whatever?
TURKEL: You would think so. And that's what you would expect from your friends, from your kids, from your family. But the difference is, they
don't know what's coming next. They don't know if something is going to happen that's going to all of a sudden make him the sympathetic character.
They're already on the wrong side of this because of what he did. They don't want to wind up on the wrong side of it because of what they do. On
the other hand, you asked the correspondent earlier, why are they doing this now? And the reason they're doing it now is there trying to make hay
while the sun shines. People are paying attention. If the opportunity for them to stand up and say, hey look at us. We don't condone that. But
they're not going out on a limb. I could assure you of that.
QUEST: All right now, finally, Bruce, I'm putting you on the spot here. Because we've had the Lance Armstrong, where you had decades of doping on
an industrial scale. And you've had the Tiger Woods scenario, and you had numerous other examples. But do you honestly believe it was right for the
sponsors to bail out on him just over this?
QUEST: Well, once again, there's two very important issues, besides the obvious. Issue number one, as we heard earlier, it's very likely that they
weren't getting a return on their investment with him. So this gives them an opportunity to save face and bail. But issue number two, you mentioned
Tiger Woods, you mentioned Lance Armstrong, we could have mentioned Oscar Pistorius, guilty of murder, for Pete sakes. Those were guilty of the
social media era. This guy is right in the middle of it. Everything has changed. Now each one of us carries a little wafer of silicon in glass, a
smartphone. And we are tweeting and are Facebooking. And right now companies realize they no longer control their brands. All of us do. And
the world has changed. The world has changed drastically. And you can't put the toothpaste back in the tube. All of us, athletes, actors, but
every one of us, men on the street now, have to be aware of this. There's cameras, there's videos, and everything is changed.
QUEST: On that cheerful, happy note, thank you very much. Good to see you, Bruce. Go back to shvitzing Miami.
Now, the newsletter. I've been talking about this in the newsletter. Frankly I take a slight different view. Whether or not it was right --
you'll hear about it in the Profitable Moment at the end of the program -- but this newsletter today talks about Ryan Lochte and what the sponsor did.
You need to sign up for it. And it arrives just as the New York market closes, and ahead of the Asia trading day. Go to CNNMoney.com/quest.
The Rio games might have been a magnet for controversy before the Olympic flame was even lit, but in the end, it finished in blazing form, fireworks.
Oh, look at this firework display.
[16:10:00] And more on the Olympic legacy, Shasta Darlington is in Rio. Don Riddle joins me now from Copacabana Beach. Because Shasta, you're
going to have to wait a moment while I see off Mr. Riddell, who is quite determined to rub salt into the wounds of every one of his colleagues by
reminding us that he's on Copacabana Beach while the rest of us are in studio 71. Don Riddell, did the sport live up to its billing?
DON RIDDELL, CNN WORLD SPORT: Yes, I think it did. There was all the distraction of the doping controversy and whether or not the government
bodies had taken strict enough action before the tournament began. We did see that cold war in the pool between some of the Americans and some of the
Russian swimmers in the first week. Overall, I think that the sport was absolutely fantastic. We saw a new world record set. We saw some dominant
performances. We saw some amazing young athletes emerging. We saw events and performances that will live with us forever. I mean Usain Bolt and the
triple/triple. Michael Phelps signing off. Katie Ledecky winning by half a pool.
We also saw athletes really rising to another level in terms of their behavior. We saw Abbey D'Agostino and Nikki Hamblin helping each other up
when they fell on the track. An incident, by the way, was rewarded with the Pierre de Coubertin awarded, which isn't often handed out. All in all,
I think it was really inspiring Olympics.
QUEST: Stay with me, Don. Shasta Darlington, for months, if not a couple of years, you and I had talked on this program as part of our nightly
conversation about possible disasters, calamities, and things that could go wrong. Will Rio be happy with the way they've been portrayed?
SHASTA DARLINGTON, CNN CORRESPONDENT: You know, Richard, we've always said all along that you really have to look at this in two different ways. Are
the Olympics a success for the athletes who came? And are they a success for the city and the country that are hosting them? And I think that, the
big question, once it's all said and done, and Rio is left with the hangover, is was it worthwhile? I don't think there's a clear answer yet.
If you look at the latest poll, you now have more than half of Brazilians who think that the Olympics make Rio look good. But also 62 percent who
still think the Olympics did more harm than good for Brazil. And while you may not get some of the white elephants that you had with the World Cup,
for example, this just came at a really bad time. Despite the gold medal in men's football and men's volleyball and great performance stories right
at the end, I do think Rio is going to be left with a hangover. We're still really trying to gauge just how bad that hangover is going to be,
QUEST: Don, quickly back to you, if you're still with me on Copacabana Beach. What was your favorite moment?
RIDDELL: There were several. But I mean, quickly, I was in the stadium when Brazil beat Germany on penalties to win their first ever Olympic
title. The atmosphere in that game was something I've never experienced before. I was fortunate enough to see all three of Usain Bolt's sprints.
I will definitely be telling my grandkids about those, that was just amazing.
QUEST: Grandkids. Yes, will look forward to that. We'll have pictures of those at some point on the program. If I'm still sitting in this chair.
That would be an achievement. Shasta Darlington, not your favorite moment, but as we look forward, you've got a trial to cover next, haven't you? A
DARLINGTON: Exactly, Richard. Talk about hangovers. Basically Brazil is waking up and realizing, while that matter was fun, they've still got an
impeachment trial that starts on Thursday. President Dilma Rousseff was suspended a while ago. The whole trial in the Senate is coming to an end.
She's going to appear in the Senate for the first time next week to defend herself. All of this while, as you know, the recession drags on. So
Brazil is right where we left it before this party started, Richard.
QUEST: Well, allow me to say, Shasta, you've done brilliantly in covering of Brazil up to the Olympics, and throughout. You've held our hand and led
us majestically through the various issues. And Don Riddell, you've been a star as always, in your own right you deserve more than a gold medal for
the way you've kept us informed and made it so lively for us on QUEST MEANS BUSINESS. We appreciate both of you. Now get on with some work and get
off Copacabana Beach. Don Riddell, he'll never let us forget he was on Copacabana Beach.
The closing ceremony on Sunday and now Brazil has passed the torch. It had no idea that would mean that it would give the stage to Super Mario. CNN's
Will Ripley explains what that means.
[16:15:00] WILL RIPLEY, CNN CORRESPONDENT (voice-over): Japanese Prime Minister, Shinzo Abe, dressed as Super Mario may have set the don' tone for
Tokyo 2020. But few Japanese actually sought live. Half a world away and 12 hours ahead of Rio, the Olympic closing ceremony was right in the middle
of Tokyo's Monday morning commute, and an approaching typhoon. Outdoor Olympic viewing parties were cancelled. But a few gathered inside.
"We hope to see all of Japan's technology showcased in the next Olympics," says Koichi Suzuki, watching the closing ceremony on a huge HK TV. You can
see every tiny detail in HK. HK just a sample of the high tech cool Tokyo 20 organizers are promising. Super high speed Maglev trains, far faster
than today's bullet trains. Robots doing everything from giving directions to driving taxis. Ambitious tech projects Japan hopes will impress crowds
and boosts the economy.
HIDETOSHI FUJISAWA, EXECUTIVE DIRECTOR, TOKYO 2020: We are going to make this games, as I said most innovative.
RIPLEY: Hidetoshi Fujisawa, is one of the Tokyo 20's executive directors. He says new technology and five new Olympic sports will draw in new fans.
Winning the Olympic bid three years ago was supposed to be Japan's badly- needed comeback after years in the economic doldrums and the disasters of March of 2011 that killed thousands and shook Japan to the core. But
problems have plagued the Tokyo 2020 ever since. A scrapped Olympic stadium design. Logo plagiarism allegations. Construction delays, even a
RIPLEY (on camera): Has Tokyo bounced back from that?
FUJISAWA: I think so, yes. People are excited about it, and people are very much looking forward to Tokyo 2020.
RIPLEY (voice-over): Problems do persist. Many are worried about the growing multibillion dollar price tag when Japan already has a huge
national debt. The responsibility of cutting costs falls largely on Tokyo's new governor, Yuriko Koike, the first woman to hold the job.
"We don't know if our new governor can do the job yet," says Tomohiro Shimoyama. We need more transparency when it comes to the Olympics.
YURIKO KOIKE, TOKYO GOVERNOR: We know the problem, and we are looking for the solution.
RIPLEY: Now she carries an Olympic-size burden. And with Tokyo tower decked out in full Olympic colors, the countdown is officially on. Will
Ripley, CNN, Tokyo.
QUEST: As we continue tonight, the future of the EU is looking shaky, or some believe that. European leaders have gone on a pilgrimage to the
spiritual home of European capitalism.
QUEST: EU leaders are mapping out their strategy to relaunch Europe, as they put it. The leaders of Germany, France, and Italy -- and that of
course include Angela Merkel, Francois Hollande and Matteo Renzi.
[16:20:00] They came together off the coast of Italy, all ahead of next month's EU meetings in Slovakia. And the message is that the shock of
Brexit mustn't be allowed to shake the EU apart.
(BEGIN VIDEO CLIP)
FRANCOIS HOLLANDE, FRENCH PRESIDENT (through translator): It's true that Brexit creates uncertainty, and it's true that in the second trimester,
growth has slowed down. And we must as much as possible eliminate all of this uncertainty and provide a supplementary boost.
ANGELA MERKEL, GERMAN CHANCELLOR (through translator): Carefully put to the test we decided on the steps on the way to the conference. Because
while we respect Great Britain's decision, we of course want to reassure the other 27 countries that they can count on a safe and prosperous Europe.
(END VIDEO CLIP)
Angel Merkel, talking now. The meeting was in the spiritual home of the federal European idea. It was just off the coast of Italy. It was where
two Italian intellectuals were imprisoned on Ventotene, during World War II. One is buried there, and wrote the manifesto calling for political
unification. There have been many opportunities and chances to have the European constitution and they of course have all failed or floundered.
Now the British vote to leave the EU has been dealt a blow to the Federalist vision. The fear is that without action, other countries are
likely or will do the same. Or at least even if they don't move as far as a Brexit vote, it will certainly embolden those separatists' entities
within their country to follow on through. For example, the Netherlands, where leaders fear it could be the next country to hold such a vote. Alex
Stubb is the former finance minister and former prime minister of Finland - - up at the north. As he joined us on the line via Skype.
The malaise in Europe, he says, goes beyond Brexit.
ALEXANDER STUBB, FORMER FINNISH FINANCE MINISTER: In many ways, people are lost right now in Europe and elsewhere in Western democracies. I mean, one
could say Trump is the cousin of Brexit and all politicians in the Western World are trying to come to terms with this.
QUEST: There are two issues, one, how they're going to be negotiate with the United Kingdom once article 50 is invoked. And the second is what sort
of European Union they want themselves for the future? How dependent are those two issues on each other?
STUBB: Well, I think they're very dependent on each other. To be quite honest, I don't think that anyone has the correct answer. You will
probably see the French and Italians pushing for a very early invocation of Article 50, and in early and quick Brexit. Whereas the Germans, especially
led by Chancellor Merkel, want to take it more easy. I belong to the category of patient people. I don't think we should rush Brexit. The
other issue is the future of Europe. And here, to be quite honest, I don't think that France, Italy, and Germany have a similar vision about the
future of Europe. So in that sense there's probably going to be discussion but no major agreements.
QUEST: What do you mean about the future of a Europe? You have a whole raft of ways to make the union work more efficiently and effectively. So
what does come next?
STUBB: I think we should actually use the momentum of Brexit for what I would call an EU 2.0, something new. Let's try to rethink what Europe is
all about. I think the institutions are good and they're very strong. But I think the message that you will hear from Renzi, Hollande, and Merkel, is
that we need to focus on a few specific issues. They'll be nothing new. They'll be talking about the internal market. They'll be talking about
defense. They'll be talking about energy. They'll be talking about competition. They'll be talking about asylum issues. These are all super
national problems to which there are only super national decisions and solutions. So in that sense I see this just as a part of a longer process.
And it will be interesting to see whether there is any major suggestion coming out. Ok, let's organize a constitutional convention, let's see how
QUEST: Oh, please, please, Alex, not a constitutional convention. Surely the reality of this flacker is that until Brexit is out of the way, they
dare not look at an EU 2.0, because the whole thing may unravel like a ball of string on a nail.
STUBB: Well, I don't think it's going to unravel. But remember that the symbolism of this meeting is that Altiero Spinelli and Ernesto Rossi, they
actually suggested a European federalist movement from bottom up. Basically saying we should surpass the nation state. The reality is that's
probably not going to happen.
[16:25:00] But reality is also, Richard, and I know that you're a Brit, that we have the first pro-European movement in the United Kingdom since
the United Kingdom actually joined the European Union. We'll see if we start getting a movement from below instead of trying to trickle down
European integration on everyone top down.
QUEST: Alex Stubb joining me on the line from Finland.
European stocks ended mostly lower. The only one that was up was the Zurich SMI, just eked out a small gain. A fall in oil prices hurt the
energy shares. And the shares of the Swiss pesticide maker, Syngenta were up 10.6 percent after the U.S. government cleared the bid from ChemChina.
Now Wall Street had a very strange sort of day. I mean just look at where the movements were, pretty to look at but not exactly conducive to
investors. When all was said and done, there was a loss of 23 points. We're in the last days of summer before a long holiday weekend coming up in
a couple of weeks. So trading might be expected to be a little bit slower as people are luxuriating in the Hamptons. Pfizer closed down 0.63
percent, after they announce a $14 billion deal for the cancer drug maker Medivation. Now Medivation's stock, that soared 20 percent on the news
overnight. The Dow was down. Europe was mixed. We shall now enjoy some business on the move.
Steve Wynn is rolling the dice in Macau, as many high rollers are shying away from China amid a corruption crackdown and a slowing economy. The
U.S. billionaire has opened a $4 billion mega resort and is hoping for a royal flush.
Volkswagen is facing a roadblock in Germany. The automaker is in dispute with a parts supplier and is being forced to cut production. More than
27,000 workers are going to be reduced for the rest of the month.
And airline passengers on British Airways and EasyJet may need to grab their wallets if they wish to complain. You're going to have to come up
with 25 pounds' charge, around $32. Airlines are turning to arbitration as regulations change instead. That is business on the move.
As we continue tonight, Donald Trump and his immigration plan. What exactly has been said and is there any movement on his plan to deport up to
13 million illegal immigrants? We'll talk about it after the break. QUEST MEANS BUSINESS.
[16:30:10] QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. When India find a placement for its rock star
central bank chief. We'll get some analysis. And Air Djibouti finds a real rock star to run the airline. My interview with Iron Maiden's Bruce
Dickenson, who is talking more aviation than rock. Before that, this is CNN, and on this network, the news always comes first.
The Turkish prime minister says authorities don't know if the attacker who killed 54 people at a wedding celebration on Saturday night was a child or
an adult. He says there are rumors that the suicide bomber was a child. Authorities say 22 of the victims were under 14 years old.
The leaders of France, Germany, and Italy met to discuss the future of the European Union almost two months after Britain voted to leave the EU.
Angela Merkel, Francois Hollande, and Matteo Renzi met in Italy I had of an EU summit to be held in Slovakia. Prime Minister Renzi said Europe had
defied predictions that it would collapse after Brexit.
(BEGIN VIDEO CLIP)
MATTEO RENZI, ITALIAN PRIME MINISTER (through translator): Many thought that after Brexit, Europe was finished, but that is not the case. We
respect the choice of British citizens, but we must also write a page for the future. And that is why internal security, external security, the
fight for a common defense and cooperation between intelligence services, better integration for the national defense industries, and the European
communities' security project are an absolute priority.
(END VIDEO CLIP)
QUEST: The former French president, Nicholas Sarkozy says he will run for the office again in 2017. Sarkozy made the announcement as he released
portions of his new book. He says he wants to lead France and what he calls, this troubled time of our history.
Hillary Clinton says she'll visit the U.S. state of Louisiana, which has been hit by historic flooding. Her Republican rival has accused her and
President Obama of ignoring the disaster after Donald Trump visited the area last week. Mr. Obama will visit on Tuesday after the state's governor
said a presidential visit would be a distraction from rescue efforts.
(BEGIN VIDEO CLIP)
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: I can tell you what the president's been focused on is the response on the ground. And the people
whose lives in Louisiana have been turned upside down by this terrible flooding event. And the response that use seen from the Federal Government
has been effective, and the president and the other members of his team that have operational responsibilities have been effective.
(END VIDEO CLIP)
QUEST: The American swimmer Ryan Lochte has just lost his final sponsor after he gave a false account of being robbed in Rio during the Olympics.
In the past few minutes, the mattress maker Airweave announced it would also cut ties with Lochte. It follows Speedo USA's decision to drop its
sponsorship. Lochte says he respects Speedo's decision. Ralph Lauren and the Gentle Hair Care brand also said they would end their partnerships.
Donald Trump says he's not flip flopping on his plan to deport millions of undocumented workers from the U.S. Now it was reported the Republican
Presidential Nominee was backing off the plan. Jessica Schneider is outside Trump Tower in New York City. Jessica, look, this is all because
when asked, one of his top advisers basically said watch this space. Surely it's a simple issue, Jessica. Will you or won't you deport?
JESSICA SCHNEIDER, CNN CORRESPONDENT: Yes, a very important issue, Richard. You know, it once seemed quite clear what Donald Trump's stance
was on immigration. Now it's all a bit murky. He once doubled down on his plan to deport about 11 million undocumented workers. But now some are
questioning has he softened his stance. And as you mentioned, it all came about, this possible change in tone, over the weekend when his newly named
campaign manager was asked about the deportation plan and immigration policies and she said "To be determined." So people are saying, wait a
second, once upon a time but just a little while ago it was very clear-cut that Donald Trump wanted to deport millions of immigrants, and now it's not
He was asked about it this morning, whether or not he had done a flip-flop. And he said, no way, I haven't flip-flopped. But then he left it again a
little murky, saying they would have a plan that was fair and firm. But he refused to really expand upon what a firm and fair plan would be. So a lot
of questions when it comes to Donald Trump's policies. It once seemed very clear. But Donald Trump is scheduled later this week on Thursday to give a
speech on immigration.
[16:35:00] We're now hearing that speech actually be delayed because they're trying to refine it. But that would definitely be the chance for
Donald Trump to firm up his stance. It did once seem clear, but now there are questions being cast.
QUEST: Jessica, if there's two policies that people remember about Donald Trump, one is he's going to build a wall, and the second is he's going to
deport illegal immigrants back across the border. He's going to find it very difficult, whether now or in the debates, to avoid answering a
specific question on that, isn't he?
SCHNEIDER: It definitely is. I've been at many of his rallies, and you hear that chant from people, his supporters in the crowd, "Build that
wall." we really haven't heard much about building the wall. He brought that new Trump campaign team in, the two new people at the helm about a
week ago, on Wednesday, and ever since then he seems to be softening his tone. He's on teleprompter when he's at these rallies, but he hasn't
doubled down on building a wall. He hasn't doubled down on deporting those undocumented immigrants. There's a lot of question. But you know, if it's
one thing we've learned about Donald Trump, he is very nimble and able to get around some of these questions. Whether or not they'll be able to nail
it down when it comes to the debates, we'll see, and whether he provides for clarity in what's a scheduled immigration speech later this week, we'll
QUEST: Jessica, who is outside of Trump Tower, thanks for joining us.
Hillary Clinton is beating Donald Trump not only in the polls at the moment, but also with the campaign war chest. The latest tally show
Clinton has an edge, a big one, over Mr. Trump in campaign cash. With a $58 million to $38 million. Cristina Alesci joins any now. How
significant is this difference? Where is the money coming from?
CRISTINA ALESCI, CNNMONEY CORRESPONDENT: It's interesting, because that doesn't take into account the money flowing into super PACs, which is an
even bigger amount. That makes the gap even bigger. So when you look at that, it's about $100 million for Hillary, about $38 million, because
Trump's super PACs haven't reported yet. But we don't expect a big number out of his super PACs now.
QUEST: That's because other people aren't -- you know, the corporate money or big rich donors are not supporting the super PACs.
ALESCI: Exactly. And so what he's going to say is I'm not beholden to special interests, I'm going to operate this on a mean and lean basis and
the RNC is going to help supplement some of the money that we haven't been able to garner. But the reality is, Clinton is planning to spend $80
million between now and November on television advertisements in battleground states. How do you combat that without that kind of war
chest? It's very difficult for Donald Trump to be in front of people without that kind of money.
QUEST: What's the problem with Donald Trump in raising the money? Because first of all, he said he wouldn't take anybody else's money. He'd do it
himself. He is now taking money. But he's made a big -- he's been very successful at getting lots of small donations.
ALESCI: He has been successful at getting small donations, but not as successful as Obama was getting small donations. He's getting some but not
a ton. Part of it was he was out there saying, I'm rich, I can fund my own campaign. So if you can fund your own campaign, then why are you asking
for these smaller donations? But the bigger point here is the large donors don't feel comfortable. When I talked to some of them off the record who
are not willing to really speak up about this, either from Wall Street or the C Suite, they tell me Donald Trump makes them nervous. So what are
they doing? They're spending their money down ballot, making sure that their candidates on the Republican side retain control of the House. Where
that they think is money better spent. That's where the money is going. It's shifting down ballot.
QUEST: If we get closer to the election day and it starts to become a real crisis, I mean, what's Donald Trump's ability to put 50 to 100 million of
his own money, which of course he can do in unlimited amounts, pretty much, into his own campaign?
ALESCI: Most people that I speak to do not think that's going to happen. There's nothing stopping him from doing that. He can certainly go ahead
and do it. But he's going to say I want to operate this campaign on a lean and mean basis, and the RNC will help me. But the RNC can't really spend
all of its money on the campaign. It's restricted as to what it can spend money on. It can give a little bit to the candidate, but it has to go out
and do other things. This is a real problem for Donald Trump. He may try and downplay it, which is what we're seeing. But at the end of the day,
he's going to have to get his hands on some cash somehow. And he's going to have to borrow it, potentially.
QUEST: He could borrow it from himself.
QUEST: Which is another thing they should do.
QUEST: Thank you very much. You're watching all these business and financial aspects that's right with you until November 8th.
QUEST: Look forward to having you here. Thank you very much.
[16:40:00] Replacement for the rock star central bank has been named. It's a change in tone and no change in lyrics for the Indian Central Bank.
We'll show you the man and we'll hear why he may not be as exciting as the current man, but people are not expecting him to be.
QUEST: Raghuram Rajan was called India's rock star central banker. Now a follow up act has been named, because remember, Mr. Governor Rajan has
announced he is to leave the central bank, the Reserve Bank of India. Urjit Patel is the new man. He was the deputy governor and has now been
promoted. He's expected to bring a change in tone but the policies are likely to stay the same. I spoke to Eswar Prasad. He is senior fellow at
the Brookings Institution, and a professor of trade at Cornell. He joined me on the line from Cornell and I asked him, we know a lot about Mr. Rajan,
he's a very famous economist and central bank governor. What do we know about the new chap?
ESWAR PRASAD, SENIOR FELLOW, BROOKINGS INSTITUTION: What we know is he is a very accomplished person in the sense that he's been at the International
Monetary Fund and has been in the private sector. And he has been a very important architect of the new monetary policy framework that the Reserve
Bank of India is putting in place with an inflation targeting framework. He's certainly not as flashy as his predecessor Raghuram Rajan. He's
certainly not as well-known internationally. But I think he's very competent and is ideal for the job.
QUEST: Central bank governors are always supposed to have that Delphic quality where you're never quite sure what they've said until after they've
said it, and you've seen the effect. Is he in that league?
PRASAD: Mr. Patel can certainly be Delphic when the occasion demands it. He's a much more low key person. Now he does face an important
communications challenge, because after all, the Reserve Bank of India is now operating in an environment where it does not have complete
independence from the government, and it's also trying to assuage international investors and domestic investors. It has to maintain calm in
financial markets, in equity markets, and at the same time push forward some important regulatory and banking reforms while keeping the political
masters happy. I think Mr. Patel is up to the job of maintaining that very difficult balance.
QUEST: And yet I mean, his predecessor had to take some very dramatic decisions which went counter to what the market was expecting on several
occasions. But he was able to get that through because -- or he enjoyed a confidence in some senses of the market. Does the new chap enjoy that, or
is he likely to find himself at the political whim and wisp of every politician?
PRASAD: I think he'll certainly be his own man. Mr. Rajan when he took over faced a difficult circumstance of inflation was nearly at double digit
levels with capital flowing out.
[16:45:00] Mr. Patel will take office under much better circumstances. Inflation is beginning to creep up but it's still around 6 percent on the
consumer price inflation basis. Foreign investors still seem to like India. And growth is pretty good. So he faces a different set of
challenges. And I think the fact that he's coming into his own at a time when markets are calmer will certainly serve him well. But there are going
to be difficult challenges ahead. I think he has enough credibility with markets, but certainly he will have to rise to the communication challenge,
because he's been somewhat more in the background with Mr. Rajan in the foreground. Again I think he's going to be up the job. But it's not going
to be an easy challenge.
QUEST: And just to brief us. What do you expect the next direction of monetary policy will be, bearing in mind the new flexible inflation
PRASAD: That is, as you mentioned, Richard, one of the key issues right now that India has moved to an inflation targeting framework as an
inflation target of 4 percent to be achieved in the next couple of years. India is on the right track. But the inflation rate has started to creep
up again. Growth is still pretty good. It's going to be a very difficult call. There are many in the company who want the Reserve Bank of India to
be supporting growth right now. But I think the sense that Mr. Patel is likely to have is that the fight against inflation has not quite been won
yet. And to call it a victory at this stage would be premature. I expect him to hold the line pretty much on interest rates unless there are very
dramatic data coming forward, either on growth or inflation. Barring that, I think he'll stay the course for the time being.
QUEST: From rock star to aviation professional, Bruce Dickenson is both. You're going to hear from the lead singer of Iron Maiden, who's going to be
talking about a lot more to do with flying in the sky, after the break.
QUEST: Well, it's loud, raucous, and it is Bruce Dickinson there singing "The Flight of Icarus," 1983 hit by the English heavy metal band, Iron
Maiden. Unlike the Greek mythology of Icarus, which nobody wants that to have anything to do with aviation, Mr. Dickinson really does fly. And he
flies professionally. He served as the pilot of the bands official plan, Ed Force I. On their recent tour "The Books of Souls," Dickenson flew the
group, crew and equipment around the world on their custom Boeing 747, which incidentally he had to recertify since he was only certified for the
75 and the 73 and he's certified for the 74.
[16:50:00] He's also the chairman of Cardiff Aviation, an MRO aircraft maintenance company. It's currently working with a company, Air Djibouti,
providing the airline with operational management. In Dickinson's own words, he calls it an airline in a box service. For this country,
Djibouti, on the eastern coast, where they're now providing an airline literally readymade, from training crew to renovating aircraft. Bruce
Dickenson joined me earlier and I asked him how Air Djibouti's business model can prosper against the bigger Gulf carriers.
BRUCE DICKINSON, CHAIRMAN, CARDIFF AVIATION: The whole point about Djibouti is we're a nice comfortable niche sitting there. It's got some
very strategic aspects to the country, which if you look at the geography of the place, it's a vital western interest. And of course there is a lot
of western personnel going to and from Djibouti, it's secure, it's safe. It's financially stable. There's a lot of good things going for it.
To answer your question about the Gulf states. Djibouti is terrific because it has a relatively small catchment area. But where do they want
to go? They want to go to London. They want to go to Paris. If you want to go to London or Paris, you have to go via somewhere else. There's only
one flight a week from Paris direct to Djibouti and it costs an absolute small fortune. So we've got a nice little niche there.
The real niche of Djibouti though is not necessarily just passenger traffic. I mean, we're under no illusions that we're going to worry
Emirates or Etihad or Qatar anytime soon. That's not the reason why we're doing it. We're doing it because the place needs an airline. There is a
market. There are people who do want to go direct, point-to-point, to places in Europe. And at the moment you can only do it by doing something
But the real market is freight. The real market is freight, sea air cargo. Djibouti is the number one cargo destination for pretty much all Chinese
goods into Africa and into the Middle East. And they're building a massive free port and container terminal. So the real reason why we're going to
develop Air Djibouti and why it will grow will be freight, because freight is where -- the freight arrives in Djibouti. It doesn't go by sea to the
Gulf. It doesn't go anywhere else. It sits there in Djibouti.
QUEST: You alluded at the beginning of this before we actually started the interview, but why you think your aviation love, passion, whatever we wish
to call it, and your music love and passion, why you think they are particularly complementary?
DICKINSON: Well, I know a lot of musicians who are pilots. And vice- versa, a lot of professional pilots I happen to know who are musicians also. There's something about the three-dimensionality of both mediums.
And there's also something about the creative aspects of both things. I mean, I've got to say, for my sins, for the last three or four years, I've
been doing some business and corporate speaking, something I call corporate stand-up. But one of the big questions is creativity. And people want to
know how do you be creative in business? I said, well, I've been being creative, song writing, all my life. So I think naturally about creative
To me, creating a business idea is very much like creating a song. It starts off from one little idea and then you just daydream what happens
next, and eventually you have to put it into a process. And eventually you have to make it fit and make it real. But we started, for example, a
maintenance company, and it's still working away happily, fixing Boeing and Airbus airliners and we've done all kinds of work for major customers like
EasyJet and people like that in Wales.
People said, but you're a pilot, why are you starting a maintenance company? I said, it's really simple. If you want to sell lawnmowers, what
should you do? They went, I don't know, open a lawnmower shop? I said, no, you buy a patch of grass and wait. Some people come along and say, you
need to cut the grass, you say, I can sell you a lawnmower. It's the same sort of thing. It's same weird lateral thinking. And I applied the same
logic to our airline business, which is, why have you got a maintenance company? Because eventually people will bring you airplanes that they
don't know what to do with. At which point you can say, we can make money for your airplane. At which point you get a cheap airplane. You do
everybody a favor. It's a good deal for everybody, but at the same time you don't have to commit a massive expense to that airplane. Why do
airlines go bust? Answer, because they own airplanes.
[16:55:00] QUEST: We will have a Profitable Moment after the break.
QUEST: And then there were none. Tonight's Profitable Moment. All of Ryan Lochte's sponsors have decided to abandon him. Two of them, Polo
Ralph Lauren and Airweave said that they were only meant to be there for the Rio Olympics anyway and they decided not to renew. However, Speedo and
Gentle Hair Removal gave reasons. Speedo said, "We cannot condone behavior that is counter to the values this brand has stood for." The only problem
I have, not that they've chosen not to go with Lochte in the future, that's up to them.
But if you're going to say it's counter to the values then you've got to say what values it is counter to. What are you saying Speedos, then you've
got to say what values it is counter to? What are you saying, Speedo, about Ryan Lochte? Is it the fact that he took a pee in the corner in
public, or that he vandalized a poster, or that he lied about what had happened? The reality is these weak statements from corporate sponsors
show that they're weighed up and their very concerned and what's going to happen? And who says what? Instead of just coming out and saying he lied
and we don't condone lying. It really is very simple, if you're going to sponsor somebody, you've got to have the courage to actually say when
they're something wrong and tell us why. 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. I will see you tomorrow.