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QUEST MEANS BUSINESS
CNN Poll: Voters Pick Trump to Handle Economy; Fox Settles Ailes Harassment Case; Renzi: Italian Referendum Before December 5th; First Report Released into Fatal Dubai Crash; Redrow Posts Record Profits After Brexit; Trump Charity's Donations to Prosecutor Questioned; Self-Driving Taxi Trial Start in Singapore. Aired 4-5p ET
Aired September 6, 2016 - 16:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] RICHARD QUEST, CNN ANCHOR: Final bell ringing on Wall Street. First day back out there after the long weekend. Dow was down in the
morning, rallied in the afternoon. Not a huge day but over 18,500. Something tells me these ladies are going to give a rollicking good end to
the session. Oh, look at that. Good grief woman, wouldn't want to get on the wrong side of her on a bad day. The Dow has closed. Trading is over.
It is Tuesday. It is the 6th of September. Tonight, we trust Trump. Likely voters tell CNN he is their pick to handle the U.S. economy.
The harassment case that cost Roger Ailes his job and now cost his employer, former employer, $20 million.
And it landed. It took off. And finally crashed. The first report is out of the Emirates crash in Dubai. I'm Richard Quest. We have an hour
together. And I mean business.
Good evening. It is nine weeks before the U.S. election day and Hillary Clinton's lead has disappeared. CNN's new poll of likely voters shows that
she's in a statistical tie with Donald Trump, 43-45 percent. It's a sharp reversal from a month ago, when Secretary Clinton was up by eight points
with registered voters. The other two candidates, Gary Johnson at 7 and Jill Stein at 2. On the economy the shift is even more dramatic and
pronounced. Clinton now trails Trump by 41-56 percent. And all this, remembering that voters say the economy is the most important issue so far
this year. The numbers are stark, and perhaps they are surprising. Mark Preston is our executive editor for CNN politics. The first question,
Mark, look, this is a poll of likely voters, on a national sort of basis. Does it account for the need to get 270 electoral college votes? In other
words, is it telling us a real story of what could happen on November the 8th?
MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: You know, Richard, in many ways it is. Are we looking at it as a leading indicator of what could
happen in some of the swing states, those states that you're talking about that could determine who wins the presidency? Here in the United States
there are five or six of those that we are zeroed in on right now. Basically the other 40 to 44 states are already accounted for. We know
they're going to be either Democratic or Republican.
States such as Pennsylvania now we're looking at, and Florida, Ohio. Those states there up in the rust belt that were specifically keeping an eye on.
When you look at the Donald Trump, who talks about being such a successful businessman, having a 15-point advantage on the issue of the economy is a
real strength for him heading into these final two months.
QUEST: So what happened post-convention, post-second-amendment argument or debacle, post-insulting the Gold Star family, what happened?
PRESTON: A couple of things. One, is there's narrative here in the United States where people think that Donald Trump is being graded on a curve.
Meaning the media is not holding him to such a higher accountability as perhaps they are Hillary Clinton. In addition to that, you're looking at
Hillary Clinton, who had a very bad month in the sense there have been a lot of discussion and talk about her email server, her private email server
when she was the Secretary of State, as well as the Clinton Foundation ties and the inner twining of her personal life, which is Bill Clinton and her
daughter Chelsea, running the foundation. And if at all there were any favors between the State Department and that foundation. So Hillary
Clinton really did not have a great month when it comes to publicity here in the U.S.
QUEST: To that extent, to have lost your lead when your opponent has been so troubled and in such trouble, I mean, this must have alarm bells ringing
in the Democrat Party.
PRESTON: It's certainly flabbergasting. And I'm sure viewers around the world are saying to themselves, what is going on over there, given the fact
that, to your point, Donald Trump has gone back and forth and back and forth on his main issue of immigration. And whether or not he would allow
undocumented workers to stay here in the U.S., or criticizing a Gold Star family.
[16:05:00] These are families that have lost U.S. military members in service to our country overseas in war. Donald Trump has really continued
on with a campaign that has been a lot of missteps. But he gets away with it.
QUEST: A couple of other quick points. I just want to say, bring up the list of the numbers again, please, if you would, Chris. So I can show it.
These other two candidates, Gary and Jill Stein, they are taking 9 percent. Do we know, I'm assuming that's there are nine -- no, I won't assume, I'll
let you answer. Tell me where their 9 percent is coming from.
PRESTON: Well, if you were to believe Gary Johnson is a former two-term Republican governor. He's a libertarian, his views are keep the government
out of my bedroom and let's be careful about how much taxing we do. You would expect that 7 percent comes out of Trump and then the Jill Stein, as
you noted there, her 2 percent, she tends to be very on the liberal side, she is a green activist, so to speak. So if you were to believe that
Johnson could take 7 away from Trump and 2 percent away for Stein, that's better news for Donald Trump. But as we get closer to election day you'll
probably see the Gary Johnson and Jill Stein numbers decrease.
QUEST: This is fascinating, Mark, forgive me for peppering you with all these questions, but it's wonderful to get your insight on this. Finally,
for Donald Trump, this is exactly what he needs, isn't it? Because it puts the wind in his sails. It makes him more electable, and it acts as a
magnet to other supporters who may have thought, this is all a bit dodgy, nobody else is going to go this way.
PRESTON: It certainly does. At this point in time, two months before the election, right after Labor Day the national holiday in the United States,
we are considered in the home stretch right now. This is when all of the nation, you know, zeroes in on this election, Richard. Here in the U.S.,
Donald Trump now can claim that he is getting support that over the summer we thought that was unattainable for him. But yet for all his mistakes, as
you point out, he's still getting it.
QUEST: Mark, we've got so much to talk about in the days and weeks ahead. Nine weeks of solid duty for you ahead, thank you for joining us.
PRESTON: Thank you, sir.
QUEST: We've got to put this into more perspective, because as Mark was making clear, the polls show that Secretary Clinton is struggling to
attract voters to her economic plan. Now if you look at this, this is the way it works. She has only ever topped 50 percent once, there you have it.
Otherwise she's always in a tracking poll under 50 percent and down she comes again under 41 percent.
Trump, however, has only ever fallen below 50 percent once. You have to keep in mind, in this apology in the demographics of all this, these sort
of numbers are absolutely crucial. The inability of Clinton to get above 50 percent on the number one issue is considered to be significant. She
has been bogged down with questions about her emails and the Clinton foundation. The Vice President, Joe Biden, and the vice presidential
candidate Tim Kaine, have been speaking to CNN, and they said that Mrs. Clinton is working hard to prove that she can be trusted.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. VICE PRESIDENT: Hillary knows it's a problem. And she's trying to figure out how to remedy it. And my advice to her, the best way
to remedy is to talk about what you care about and talk about it with some passion and people will see through it. But this is going to be, and you
know it better than I do, Jeff, this could be the most negative campaign in the history of modern politics, I think. My question is, is anybody going
to be able to break through what is just, you know, sort of the notion of pox on both your houses. That's why you hear her talk more about
explicitly what it is she's going to do, how she's going to change things.
TIM KAINE, U.S. VICE PRESIDENTIAL CANDIDATE: And we're making the case on the issues. We really do feel like talking about our small business
backgrounds and these points to the economic plan to people who are looking for a ladder. They want to see a ladder that they can climb and that's
what Hillary and I are talking about. At the end of the day that will pose a comparison that's very stark.
(END VIDEO CLIP)
QUEST: A comparison there's very stark, but the numbers tell their story. Keep this chart in mind, only ever beyond 50 percent once. Austan Goolsbee
is with me. He is one of Hillary Clinton's economic advisers, also a professor at the University of Chicago. And regularly joins us and helps
us understand monetary policy and the like. But Austan, today you have a sterner duty to help us understand. And it really is, why isn't Hillary
Clinton's message on the economy resonating with voters?
AUSTAN GOOLSBEE, ECONOMIC ADVISER TO HILLARY CLINTON: Well, I guess I would say two things.
[16:10:00] One is, I know why you like the CNN poll, but if one poll is an outlier and a bit different than others, at least take with a grain of
salt, look at the aggregate. If you look over months, because Donald Trump began as a businessman, he has consistently had some gap between him, he
was ahead on the question of who do you think would be better for the economy, that was true going back April, May, June, even going into the
The one time when Hillary Clinton reversed that and actually took the lead on him was when Donald Trump was actually outlining what he wanted to do.
He described his tax plan, that it was $12 trillion tax cut, and they started looking into his business record. And when you actually started
getting details on Donald Trump, he began falling quite dramatically in the polling.
I think over the last three or four weeks we've had a focus not on the economy. So I think that on the question of the economy, it's kind of
going back to what it was before. I think the danger that Trump had better be careful of, is every time they put the spotlight on him answering the
question, what are you for, that's the best thing that ever happens to Hillary Clinton.
QUEST: So Hillary Clinton in this -- I mean, we obviously have this issue of the emails and the server and the Clinton foundation, which still shows
there's an element of trust about it. But the economy -- I mean, Donald Trump's been bankrupt or at least his companies have, several times. This
should be an easier get for the Democrats against him.
GOOLSBEE: Look, I agree with that. The only thing I would highlight to you is, Labor Day was yesterday. That's the traditional period of greatest
focus of the American voter. It starts Labor Day, goes through election day. If you go ask most people in the country, in the period of August,
any details about Donald Trump's business career or about Donald Trump's economic policy, they don't actually know that. The number of bankruptcies
that he's had. This issue that the Trump foundation is giving $25,000 payment to the Attorney General of Florida just before she drops the fraud
case against Trump University. They are not aware of those facts. But they will be by election day.
That's why I say, I think this actually raises -- it's heartening for Donald Trump for sure that he's drawn even in a poll as we go into Labor
Day. But it also highlights a danger, which is, up until this point, every time Donald Trump opens his mouth and actually says what he wants to do, he
goes down. They're going to start asking him what does he want to do.
QUEST: So you've obviously been around more elections than most. Is it time to refine your message? Forgetting Donald Trump for the moment. In
terms of your own economic policy, infrastructure spending, tax credits for the middle class, the sort of policies that Hillary Clinton has put
forward, is it time to refine that message?
GOOLSBEE: Maybe. You know, it depends on what you mean by "refine." I think if you take the collection of what Hillary Clinton is proposing,
which is a lot on small business, middle class wages, infrastructure, the things you mentioned. I think those are pretty good topics that if the
election ends up being about policy, which I'm the policy guy, that's where I hope it ends up being. If it ends up being about policy, I think
refining the message, maybe. But putting forward her program, she's going to stand pretty well. I think the farther it gets away from actual ideas,
the stronger it is for Donald Trump, we've seen that again and again.
QUEST: Austen Goolsby, will talk to you more as this election -- we've only got nine weeks to go. Nine weeks --
GOOLSBEE: Nine weeks we get it.
QUEST: -- if we last that long. Thank you, sir, good to see you.
Now, Fox is to pay $20 million to settle a sexual harassment suit in a case that brought down the former chairman of Fox, Roger Ailes. Gretchen
Carlson accused him of harassment, sexual harassment of the worst sort, and retaliation back in July. Now, in a rare move, the network's parent
company has issued this apology. And it is rare. "We sincerely regret and apologize for the fact that Gretchen was not treated with the respect that
she and all our colleagues deserve." Our senior media correspondent Brian Stelter. Brian, which were you more surprised at, the apology or the $20
BRIAN STELTER, CNNMONEY SENIOR MEDIA CORRESPONDENT: Actually, the apology. Because of the ramifications the apology can have.
[16:15:00] You know, Roger Ailes just last week retained a libel lawyer and threatened a defamation lawsuit against a reporter, Gabriel Sherman who has
been leading the way on this story. That kind of action, any action by us in the future could be undermined by the fact that Fox has come out and
apologized. They're not saying Ailes harassed anybody, but they are saying Carlson was not treated well at Fox. And that was a very striking
QUEST: $20 million is a lot more than any of the previous ones, I've seen numbers of $3 million, $4 million from previous cases.
STELTER: $20 million might reflect her future income at Fox. She was a multimillion-dollar anchor. Perhaps she was arguing, her lawyers were
arguing she would have made a lot more money there in the future. There were other settlements that have also been reached. My sources saying a
handful of other settlements with smaller dollar figures. This may not affect Fox in the material way. They may not have to disclose this in
their next earnings report, but it's a huge black eye for the company, for the Murdochs. They're trying to move on by reaching these settlements.
But it's hugely embarrassing.
QUEST: I need to ask about this. Because I read Sherman's latest piece, you referred it to me in your reliable sources newsletter.
STELTER: Really a tour de force. He had many new details over the weekend.
QUEST: It was fascinating. The thing that got me, who knew what and how in the higher echelons at Fox. But even allowing for that, isn't it time
for one of the Murdoch's to stand in front of the press and actually take questions?
STELTER: That is what I've been saying to their assistance, their representatives.
QUEST: Their publications will be the first ones to excoriate any other company where the CEO didn't speak.
STELTER: That is absolutely right. And they've remained silent throughout all of this. Maybe they would say they have non-disparagement clauses so
they can't criticize Ailes. But I do think the public is owed an accounting of what happened here. Of how much evidence the law firm found
of alleged harassment by Ailes. This executive who founded Fox News has continued to deny the harassment claims. But it's clear the Murdochs
believe the claims. They just paid Carlson $20 million. They would like this to go away. But the aftershocks continue at Fox News. Just today the
7:00 p.m. anchor, Greta Van Susteren, walked out the door.
STELTER: She walked out the door because she has a clause in her contract that says if Ailes walk, I can walk. Just one example of the aftershock.
QUEST: But why would she want to walk? I assume Greta Van Susteren, who used to work at CNN incidentally, I assume she was well paid. Why would
she activate that clause?
STELTER: Her allies say she was uncomfortable there for years, while Ailes was in charge. She sensed after Ailes left that things weren't getting
better. So she saw an opportunity to walk out. Normally if you leave a network like Fox you have to sit on the bench for a long time. Now she can
actually join a new network pretty quickly. We'll see if she ends up being hired by another network.
But it's an example of the continued effects of Ailes's resignation. No one really knows what Fox News will look like after the election. And that
of course has big consequences for the Murdochs because it's a huge profit source for the overall company.
QUEST: And superb reporting from you and your team. Where do we sign up? Remind us where we sign up.
STELTER: CNNMoney.com/media for our nightly newsletter.
QUEST: CNNMoney.com/media. It is excellent reading.
STELTER: Thank you, thank you very much.
QUEST: I don't know where you find time to write it. Although it's excellent.
STELTER: Right now.
QUEST: Thank you.
The referendums aren't over in Europe. Italy will head to the polls before the year is out. I'm talking to the achieve executive and the chairman of
an Italian bank that is clamoring for reform. It's QUEST MEANS BUSINESS.
[16:20:17] On Wall Street, investors were cautious at getting back to work after the long weekend. A weird sort of day. Opens up, goes down and
finishes up again. Not huge amounts of volume. And certainly not a large movement, up 46 at the close, inching higher. There was some weak economic
data that suggests the Fed may hold off raising rates. But as you know from our poll amongst QUEST MEANS BUSINESS viewers and readers, 56 percent
of you think that the Fed should raise rates, even though they won't. Paul la Monica didn't vote in the poll. Paul, Monsanto, what was happening
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: Very interesting, Richard, Monsanto still in play, buyer of the Germany conglomerate. Raising its bid
for the agricultural giant yet again. There was $65 billion. Monsanto still hasn't given any indication whether it's going to accept the deal.
And Monsanto's stock price is significantly lower than what buyer's price is right now. So I think Wall Street is still betting that this deal is
not going to happen even though there's so much consolidation in the agricultural sector.
QUEST: When the price sort of doesn't meet or at least moved toward the bid price, that does suggest that the thing is going to fall over. Why
would it fall over? What is the principal objection from Monsanto? Is it just on valuation?
LA MONICA: I think part of it is on valuation. They are obviously, trying to get an as his high a price as possible. But keep in mind also, Richard,
Monsanto not that long ago was seen as the hunter not the hunted. Monsanto wanted to buy Syngenta. That deal didn't go through and then Syngenta and
ChemChina hooked up. You have Dow and DuPont, obviously doing a big deal. So Monsanto is starting to look like the odd man out in terms of being able
to buy someone of its own. And they may be in this uncomfortable position now of having to be selling out when they want to be a buyer.
Paul la Monica, when you're next with me here I shall be asking you whether the Fed should raise rates. We've got to come to grips with this issue
before September 21st when the two-day meeting begins. Good to see you, Paul.
LA MONICA: Thank you very much.
QUEST: The Italian Prime Minister, Matteo Renzi, has announced a national referendum on his plans for constitutional reform. Now the date is to be
held before the first week of December. The reforms he's introducing or wants to introduce, promised to reign in corruption and would streamline
parliamentary procedures, overhauling Italy's economic policy.
Italy has effectively been stuck in a seven-year recession. It's lost around 10 percent of GDP over that period. And that stagnation, that loss
of growth has caused Italy's banking system to become increasingly fragile. That's exactly the time of course, when other banking systems have
strengthened. Italy basically did no recapitalization and no consolidation of the banks ever since the great recession in 2008. The chief executive
and chairman of the Italian bank, Cassa Depositi e Prestiti, say they hope Renzi wins his referendum. Now this isn't a bank as such. It's a
government entity infrastructure based bank. I spoke exclusively to Fabio Gallia, and Claudio Costamagna from Milan.
Why after eight years of crisis is Italy only now dealing with problem banks?
FABIO GALLIA, CEO, CASSA DEPOSITI E PRESTITI: When we compare on a situation to foreign examples, the detonator of this crisis is basically
represented by either toxic assets, real estate bubbles, or some extreme market exposure. None of these items are present in the Italian situation.
Because it's basically the results on nonperforming loans, particularly exposure to corporate. Those enterprises which have been severely hit and
affected by a long and tough recession. That also explains why it has not been tackled at the beginning. Because NPOs take a few years to form. And
clearly have a great impact on P&L and capital ratio.
QUEST: You are at the center of what we might call the Juncker plan of leveraging relatively small amounts of official money with private money.
When Jean-Claude Juncker announced the plan, and he came up with this very large amount that it was worth, most of us said, well actually there really
isn't that much money there. It is all leveraged, dependent on other institutions like CDP coming in.
[16:25:00] So Claudio, is it your feeling that there is sufficient involvement, that enough banks, enough institutions have joined in the
Juncker plan to make it worthwhile?
CLAUDIO COSTAMAGNA, CHAIRMAN, CASSA DEPOSITI E PRESTITI: Yes, and no at the same time. The Juncker plan has of course its limits. But, you know,
it hasn't really been fully deployed yet in Europe. So we are in the process of doing it. We've already launched a couple of initiatives which
are directly flowing from the Juncker plan. But it's not just the Juncker plan. I think that there are several opportunities were our role as an
anchor investor can really attract private capital, together with ours, to really intervene in areas where without our anchor investment, it would not
GALLIA: What we proved in the last few months is that we can really take this money, tap these resources, and put them to work on our country. This
can be done on a number of different sectors in which we're working. Innovation is an example. But clearly that can be done more and more also
on the infrastructural side.
If you ask me is that money enough? We know that the gap, the structural gap and investment gap in Europe is huge. But this is the first step and
it's very important to know that when the Juncker plan has been launched, it was the first time in the last probably eight or nine years during which
we were talking about investments. We were talking about growth, not only about austerity. So to me that is very important.
QUEST: Are you in favor of the United Kingdom, the city of London, keeping its passporting rights for financial institutions as part of a Brexit deal,
so that a bank in London is like a bank anywhere else in the EU, or do you think passporting has to go?
COSTAMAGNA: If Brexit happens, Brexit has to happen. And therefore, you know, I would not allow passporting. If, you know, it would be up to me to
negotiate the deal. I don't think that the U.K. can have advantages of being part of Europe and not the disadvantages. Either they are part of
Europe or they are not.
QUEST: There is a general mood in Europe that something is wrong. That the system is not working for the people as it should do. I think you see
that certainly in Italy. We saw it this week or last week in the German elections. We're seeing it in the United States with the Donald Trump
nomination. How worried are you, gentlemen, about the mood in your country at the moment?
COSTAMAGNA: I think that it is less of a problem for Italy. It's a more European. Having said that, clearly people are asking for some changes.
People are somehow afraid and threatened by these shifts.
GALLIA: Young people, if they don't find a job, they don't have confidence about the future. And clearly there can be a swing factor in the political
landscape. Therefore, it's important to focus on doing reforms, but clearly putting as a priority growth, employment, in order to adapt our
societies, our economies and ourselves, to a future, which is already as of today surrounding us.
QUEST: Chairman, you have the final word.
COSTAMAGNA: I would add that the solution has to be I a European solution. I don't think that the solution will be found in Italy and France or in
Germany. I think it has to be a European solution. That's the only way that we can get out of this, you know, not only the crisis, but also to go
forward and to give back the hope that is badly needed in Europe, especially for the young generations.
QUEST: The chairman of the chief executive, CDP of Italy.
When we return after the short break and the news headlines. The plane took off, it flew, it landed, it then took off again, and then it crashed.
What happened with the Emirates 777? A report has been released and we will have the analysis on it.
[16:31:48] QUEST: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a moment. When Hillary Clinton calls out Donald Trump for
the work of his Trump foundation. And Singapore is the first place in the world with driverless taxis. The founder of the company responsible will
be joining me live. Before that, this is CNN. And on this network, the news always comes first.
Volunteers in Syria have released this footage of a supposed chemical attack on the city of Aleppo. The Assad regime plane dropped barrel bombs
laden with poison gas into a rebel held neighborhood. According to the Syrian Observatory for Human Rights, this footage is from the Syrian civil
defense that shows children being hosed down and given oxygen masks inside a makeshift hospital. Groups of more than 80 people are suffering from
breathing difficulties after the attack.
The United States says its relationship with the Philippines is rock solid despite a spat between their presidents. The White House cancelled the two
leaders' meeting after Rodrigo Duterte used a profanity when talking about President Obama. The Philippine president then expressed his regrets,
saying the remark was really a profanity directed at a journalist.
A new CNN/LRC poll shows Donald Trump has closed the gap with Hillary Clinton. The survey of likely voters nationwide gives Mr. Trump a slight
edge of just two percentage points, it's within the margin of error, however it is a sharp reversal from only a month ago.
The preliminary accident report for the Emirates plane crash that crashed at Dubai airport has now been published. It appears that the pilot made a
variety of errors when trying to abort the landing, though since it's a preliminary report, no conclusion has been reached in the report so far.
This is what happened. The plane, the 777, is coming in to land. It actually does land. The main landing gear on both sides actually does
touch the runway. But it is already far too far down the runway, and the pilot received a warning there is not going to be enough runway left. They
attempt to do what's known as a go-around, where they try to take the plane back into the air. Now the plane becomes airborne, it gets to 85 feet into
the air. But unfortunately, they have not managed to get the engines to spool up, because either they didn't push the button or the button didn't
activate, and the plane crash landed at the end of the runway. It literally fell 85 feet out of the air.
Firefighters died tackling on the tarmac. 282 passengers and 18 crew were evacuated safely from the plane.
[16:35:02] The issue surrounding the report is really, why did the plane, when it attempted to take off again here, why was it unable to reach
altitude? Why did the engines not spool up, as they say? CNN's safety analyst, David Soucie, joins me live from Denver, Colorado. David, you've
read the report. It's a model of a report for a preliminary. There's much good information in there. Why didn't the plane take off again?
DAVID SOUCIE, CNN SAFETY ANALYST: Richard, it's a very technical issue. But if we transcend the actual mechanisms of what happened, it's a familiar
story, Richard. It's something we've talked about a lot. It's when the pilots are continually faced with automation in the cockpit, and they
become over reliant on that. So what happened here is that when you realize, now, there was wind shear in the area that had been noted and they
were aware of this. When they came in to land, they probably had their finger on the go-round button, the "toga" button. And what that would do
is then automatically increase the engines, bring the aircraft back up, prepare the aircraft for another take off right afterwards.
Now here's the problem, Richard, the system says that once those tires and wheels hit the ground, they are called squat switches. Once those are
armed, the airplane says I've already landed, so I can't do the go-round. So if that button is pushed at that point, then it would have made no
difference whatsoever at all because now those throttles aren't coming forward. But the pilot would assume that because he had pushed that
button, that he was already preconfigured and the engines were spooling up. That didn't happen in this case.
QUEST: There's a 13-second gap, as I look at the report, between when the toga, the go-around begins, David, and when they realize that it actually
is having no effect, because the machine is designed, once those wheels touch the ground there, pushing that button had no effect. But 13 seconds,
David, before they manually fire walled the throttles and thrust levers. That's a long time.
SOUCIE: It's a very long time, Richard. This is what I referred to, we've talked about this over the years, as an atrophy of vigilance. The
inability of the human mind to understand that something anomalous is happening here. You push the button, in your mind you say I'm done, I've
done what I need to do, now all I have to do is fly the airplane. In this case that didn't happen. The mind takes a while to understand that
something else has to happen. And at that point you wake up and you say, I've got to do something else. By then it's too late.
QUEST: All right. Now, the commander, the pilot -- was also the pilot flying in the left hand seat, he was in his mid-30s. He had roughly 7 1/2
thousand hours total flying experience, which is not a lot, 5,000 of it was on the 777. This is coming back to the point you made at the beginning.
This particular pilot has flown effectively automated aircraft from day one.
SOUCIE: Absolutely, Richard. You look at the way pilots are trained now, and it's all in good faith. What we're saying is that something happens to
the aircraft. So we learn from these accidents. When we learn from the accidents, we try to fix it so it doesn't happen again. How do we do that?
We've gotten into the automated society. Rather than focus on training and looking for training and changing the thinking to say what anomalous things
are happening here and how do I react to those. The pilot doesn't think anymore. The pilot goes through the routine, the checklist, the checklist
manifesto of saying I will do exactly as I'm told on this, which is good, that has to be done. But what has to be done as well is our brains, we
need to train these pilots to look for these anomalous activity as well.
QUEST: David Soucie, how grateful we are that you have come in as our safety analyst and given us perspective. Thank you, sir.
SOUCIE: My pleasure.
QUEST: Stocks closed mostly lower in Europe. Have a look at the numbers. We'll put it all together for you. You had three down and one up. The
Xetra Dax eking out a small little gain, even smaller loss for the Zurich SMI.
Brent crude was down 1 percent. Saudi says there will be no production freeze. Iran says it will support any measures to keep prices stable. And
you'll be aware, of course, of the OPEC/Russia discussions which supposedly had given a boost to share prices.
Now, the chief executive of Redrow, says his company will have to watch the housing market with vigilance, when the U.K. actually invokes article 50.
That's the article, of course, that shows the start of the Brexit process. But we had been told, of course, that post Brexit, any company,
particularly U.K. companies, for example in building, were going to be clobbered.
[16:40:04] Well, just look. This house builder has announced record profits. The Redrow, the company we're talking about, the shares fell 30
percent after the vote to leave the EU. They have since rebounded. Look at it, they have rebounded. But they're actually almost back at the all-
time high or at least the recent high that we saw just before the actual vote itself. The chief executive of Redrow is John Tutte, and I asked him
why his company had not been hit after Brexit, when we had been told all along that house builders particularly were going to be clobbered.
JOHN TUTTE, CEO, REDROW: I think it's to a certain extent the country's reaction to Brexit. I mean, leading up to the referendum, we found the
market was pretty stable, year-on-year comparable were quite good. Of course when we had the vote announced, we were a little bit fearful as to
what might happen. Certainly concerned what happened to the share price on the day of the announcement.
But I think we put a trading statement out the following Tuesday. And I remember on the Monday, just ringing around and speaking to all of our
businesses and saying, tell me what the sentiment was over the weekend. I was very encouraged actually, people had just decided, well that was the
vote, that was the decision. Many people of course wanted that decision. So we decided that, you know, life was going to carry on as normal. I
think if I look back over the last ten weeks, you know, that's been the case.
QUEST: So even within this house building environment, the stability that you're seeing, are you seeing any price pressures? Obviously in the
aftersales market, we're hearing reports of prices, if they're not exactly rising or staying stable, the latest survey suggests there may even be a
fall for owned homes. But for new builds, are you seeing any pricing pressure?
TUTTE: Answering for Redrow, I would say no. If you look at our position, we've got a very strong order book. We came into the year with the order
book 57 percent up at 807 million. We've got a fantastic product. I mean, our customers love our product. What we've seen in terms of pricing is
incentives which have been running very low for the last two or three years, at between 1 or 2 percent, and that continues to be the case. So
we're not really seeing any pricing pressure. You know, we've got the odd customer who has perhaps tried it on a bit and says, prices may well fall,
can I have a discount, and we've been pretty firm and said no. I would describe prices as stable.
QUEST: Interesting. It's a very fascinating environment. But I honestly assure you, John, I'm not looking for a dark cloud where none exists. But
I think you would have to agree with me that you do have to be vigilant as certainly one once article 50 is invoke and the nitty-gritty of
negotiations gets under way. Vigilance in your area will be required.
TUTTE: Oh, I think that's absolutely right, Richard. And don't get me wrong here, when we heard the vote, the first thing you do is you think
about what the implications might be for the business, and you just take a look at those areas in terms of your land buying. You look at your
resources and you look at your sales strategy. And you just make sure that you've got the right contingencies in place if things do turn down. But
there's certainly no signs of that yet. Of course the biggest influence on our market is the economy. And it will depend in the end on how the
economy fares when eventually we get around to issuing notice.
QUEST: Redrow, the chief executive.
We've heard a lot over the political questions relating to the Clinton foundation. In a moment we're going to be talking about Donald Trump's
foundation and some questionable political donations.
[16:46:17] QUEST: Donald Trump has denied a $25,000 contribution to the Florida attorney general as attended to prevent an investigation into Trump
University. Hillary Clinton has called the situation questionable. CNN's senior investment correspondent, Drew Griffin reports.
PAM BONDI, ATTORNEY GENERAL, FLORIDA: It is my great honor to introduce to you --
DREW GRIFFIN, CNN SENIOR INVESTMENT CORRESPONDENT (voice-over): Florida's attorney general Pam Bondi is a huge supporter of Donald Trump.
BONDI: The next president of the United States of America, Donald Trump.
GRIFFIN: Bondi is also the Florida attorney general whose office decided not to pursue a case against Donald Trump. And the decision was made
almost exactly at the same time Trump made a $25,000 donation to Pam Bondi's political PAC.
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: I've known Pam Bondi for years. I have a lot of respect for her. Never spoke to her about that
GRIFFIN: Trump on his plane this weekend denies any connection. Pam Bondi also forcefully denies any connection, calling it bullying by the Clinton
campaign. So what did happen? Here are the facts.
Pam Bondi took office in 2011. Trump University was already out of business. Prior to her taking office, Florida's attorney general office
received 20 complaints against Trump Institute, a business affiliated with Trump but it too was out of business. Since Bondi took office, up until
the decision was made, Florida received just one complaint against Trump University.
According a spokesman for Florida's attorney general, it wasn't enough to justify Florida filing suit. Instead, staff doing due diligence reviewed
the complaints in the New York litigation and made the proper determination that the New York litigation would provide relief to aggrieved consumers
nationwide. In other words, Floridians could join New York's lawsuit. The spokesman also told CNN, Pam Bondi had nothing to do with it. The decision
was made by staff. In fact, the spokesman says, Pam Bondi didn't even know there were complaints against Trump.
But around the same time the Florida attorney general's office was deciding not to pursue a case against Trump, Pam Bondi was pursuing Trump himself
for a political donation. It was December of 2013. Trump's foundation donated 25 thousand dollars to Bondi's political action committee. Bondi's
attorney general's office never pursued the case. Did one follow the other? Bondi again today on Fox Business news, says no.
BONDI: Of course I asked Donald Trump for a contribution. That's not what this is about. She was saying he was under investigation by my office at
the time, and I knew about it, none of which is true.
QUEST: The race to put self-driving cars on the road has started. Uber is launching trials in Pittsburgh. One company has already beaten them to the
streets. It's happening in Singapore. We'll talk to a chief executive in a moment.
[16:51:33] QUEST: Until recently this was the own way most of us ever got near a driverless car, and not very good at that. Now the ride sharing
industry will soon be pulling in as much money as the world's biggest automakers, according to new forecasts from ABI research. The sector
includes companies like Uber and Lyft and is expecting growth expectations of 18 percent each year. So just how much money are we talking about for
bookings in this? Take a look. You're talking about $100 billion or so in bookings by 2020. And then by 2030, you're looking at more than $300
billion. It will triple. The industry is facing one -- ooh, hang on. There we are. Look at this. The industry is facing one major obstacle,
self-driving cars. That's why some companies have their feet or wheels in both industries.
Uber is beginning trials of self-driving cars in Pittsburgh. NuTonomy already has cars on the road in Singapore. Passengers can summon a car
with an app. Joining me now is Karl Iagnemma, the nuTonomy's chief executive. Sir, I am quite convinced that your cars are probably
considerably more successful at navigating themselves than my ham-fisted attempts with a remote control in the studio. How big is your scale for
remote control and where is it going in the future?
KARL IAGNEMMA, CEO, NUTONOMY: Well, we launched in Singapore. The world's first open to the public pilot of a fully-self-driving car service, a
robotic taxi, if you will. Every day people in Singapore can experience what it's like to ride in a driverless car. We as a company can gain
valuable feedback about what our end user customers think about the experience. But we're not just focused on Singapore, the plan is to start
in Singapore and then scale globally from there.
QUEST: I've had one experience in a driverless car or self-driving car, an autonomous vehicle -- whatever the posh phrase, politically correct phrase
of de jour is -- in Berlin some years ago with the university. It was a terrifying experience, all things considered. However, it is the future,
isn't it? How does it work in Singapore? How does it manage to get to all the destinations that I might want to go?
IAGNEMMA: We make a map of the city. Before we start driving on the road, we make a very precise map of the city. That car relies on that map
information to know precisely where it is. We know where we are in Singapore to within 2 1/2 centimeters at all times. That's what allows the
car to go from point-to-point with a very high degree of accuracy.
QUEST: And then obviously within that degree of accuracy there are the inherent safety mechanisms if somebody walks out in front of the vehicle,
if there's a red light, if there's an accident, if there needs to be an emergency stop.
IAGNEMMA: Yes, absolutely. That's really, you know, where the magic happens, Richard. Having software that's sophisticated enough to make
smart decisions even in highly complex driving situations.
[16:55:00] I mean, that's what really separates the company these days. That's where nuTonomy has a real advantage.
QUEST: When we look at a Lyft or an Uber on the large scale in major metropolitan cities and the deals they've done with General Motors or
Volkswagen or whoever it might be, do you see the future for a sharing economy, for ride sharing with self-driving vehicles?
IAGNEMMA: Well, I do. And I'll tell you why. The first order of economics are really hard to deny. When you take a taxi in a city anywhere
between 30 to 60 percent of the cost of that trip, depending on your market, is the cost of the driver. And if you can eliminate the driver,
you're radically changing the cost structure of a manned taxi service. That's why there are so many big players running at this technology as fast
as they can.
QUEST: Sir, good to see you. Thank you for joining us. Forgive me if I get back to playing with my cars in the studio. Thank you very much
indeed. We will have a Profitable Moment after the break. Go.
QUEST: Tonight's Profitable Moment. We don't know all the details about the Emirates instant, but it does seem this could be well and truly another
example of where automation has been allowed to overtake procedures and pilots are one stage behind. More investigation will be required. But
it's something we've talked about on this program before and we'll continue to do so.
That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I do hope it's profitable. I'll
see you later in the week.