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QUEST MEANS BUSINESS
Deutsche Bank Shares Plummet Over Fine Fears; EU Council: Brexit Process to Begin in 2017; Slovakian Foreign Minister: EU Needs a Refresh but is the Best We Have; Trump Finally Admits Obama Was Born in the U.S.; Kasich Works with Obama to Pass TPP; Mayor London Says U.K. Must Not Rush into Brexit Negotiations; London Mayor: Trump Contradicts American Tolerance; Oliver Stone Film: Snowden is a Whistleblower; Rise of #Foodport Changes the Restaurant Business. Aired 4-5p ET
Aired September 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: Learning a language on Wall Street. Rosetta Stone ringing the closing bell. The language of the market is that
the Dow is up the better part of 100 points. And let's see how they do with the gavel. I think I would stick to a foreign language if I were you.
Today is Friday. It's September the 16th. Tonight, the world's riskiest bank and the world's biggest fines. Deutsche Bank is in crisis.
Happy new Brexit year. The timetable of Article 50 just got a little clearer. I will be speaking to the London Mayor Sadiq Khan about what he
wants from Brexit. And -- check please. Quite literally. Food bloggers are making thousands out of what you might call food porn. I'm Richard
Quest, it is Friday. It's the end of the week, but of course I still mean business.
Good evening, Deutsche Bank says it has no intention of paying a $14 billion fine. Which is the amount of money the Justice Department is
demanding in the United States. It has accused Deutsche of miss-selling toxic mortgages in the run up to the financial crisis. Now be aware the
fine is much larger than investors had expected. And it raises questions about the ability, not only of Deutsche Bank's future, but how would raise
the fine, the capital and what the bank would look like thereafter.
As shares in Frankfurt fell 8.6 percent, Deutsche Bank shares fell, and you can see just how the shares have performed so badly. We have known that
the Deutsche Bank problems in the U.S. have been around pretty much for years. But there are capital regulatory issues as well as related to the
bank. So you have a sharp fall here, this is on the back of the news of the fine. Deutsche Bank says the fines out of all proportion with what
others have paid. An extremely sharp fall in Deutsche Bank shares.
What exactly the others have paid, I will show you, of the super screen. Now if you take a look at the fine so far. There you have Deutsche Bank.
The DOJ is. seeking $14 billion U.S. dollars. These are the others that have subsequently been fined, JPMorgan, Goldman Sachs, Citi and Bank of
America. Only Bank of America's fine is bigger. The Bank of America fine was at $16.7 billion and also included rate rigging.
Then you have the JPMorgan fine, which is $6.2 billion, which has been set aside. And these are the various numbers that the bankers put aside for
its individual moneys. Paul La Monica joins me now to discuss this more. Paul, the numbers involved, the DOJ, doesn't expect to get anything like
what they're asking.
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: I doubt that they think they will get that. Especially since Deutsche Bank has said that now it is a
negotiation process. And they obviously don't want to pay that much, and can't afford to pay that much, Richard. Because they only have about $6.2
billion in litigation reserves right now. So $14 billion is clearly unacceptable to the management at Deutsche Bank. Now we have that dance.
What winds up becoming the true settlement that the DOJ will want.
QUEST: The general rule of thumb, seems to be it's between a third and say up to a half or three quarters. Now, that would suggest, you know,
anywhere between $5 and $9 billion. If Deutsche gets it -- or agrees that sort of level, does it have to go back to its equity capital to raise more?
LA MONICA: It is possible it may have to do so. As we pointed out, the reserves right now are $6.2 billion. Anything above that could be
problematic. And I think that is why you saw such a huge selloff in the stock, and other European bank stocks as well today. Deutsche Bank really
tumbling. We saw Credit Suisse, UBS, Royal Bank of Scotland, Barclays, all getting hammered today.
QUEST: But it's not in the Department of Justice's interest to put Deutsche out of business. As we look at the stocks, RBS obviously, very
badly clobbered. Even Barclays is down 2.8 percent. What is the DOJ's gain here? Bearing in mind Bank of America, which probably had the
greatest liability and the greatest exposure, because it is a U.S. domestic bank.
LA MONICA: Correct. I think the DOJ needs to try and figure out a number that seem palpable. It is extracting some sort of pain to show that you
cannot get away with these financial crimes. But you don't want to put Deutsche Bank out of business.
[16:05:08] QUEST: But why is it taking so long. The others have already paid. So why is Deutsche Bank -- let's face it, we're 7,8 years after the
events, and after the crisis. Why is Deutsche Bank so late in all of this?
LA MONICA: I'm not sure why exactly Deutsche Bank have been so late. Maybe it is just simply a case of there are just so many people out there
that can look at every single crisis. And we've had numerous different financial firms being targeted, not just for the mortgage-backed securities
issues obviously, but LIBOR rigging, and the currency markets and oil. It is so difficult right now. I don't envy any of the regulators because they
have not had a break in eight years. I need to go on vacation. I don't know if anyone at the SEC does.
QUEST: Oh, I think they do.
LA MONICA: They might.
QUEST: Have a good weekend.
LA MONICA: Thank you.
QUEST: Thank you very much indeed.
On the question of whether or not the fine is satisfactory or indeed, if it is the right form of sanction against Deutsche Bank, Arthur Levitt, served
as chairman of the SEC and believes that there are better ways to punish the miscreant banks. I asked him a short time ago whether the Department
of Justice expects to get all the money it's asked for.
ARTHUR LEVITT, FORMER CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION: I don't know what they expect. Undoubtedly this is part of a process
negotiation. But I think the fine is largely irrelevant to the problem. The fine is a penalty paid by shareholders. What really needs to be done
is the structural change at the bank. The fine is not going to change behavior. If the bank feels they can't afford the fine, they'll tell the
Justice Department that. And the chances are the Justice Department doesn't want to put the bank out of business.
QUEST: How then do you create this structural change within a bank if there isn't some form of penalty, either from personal liberty, or because,
you know, the bank has to go back to shareholders because of depleted capital?
LEVITT: There are a variety of remedies that regulators can check. The regulators can for instance, ask the bank to divest some of its activities.
Could ask you to take on more capital. To change his Board of Directors. To put a monitor in. All of those steps would not penalize shareholders.
All of those steps would call for structural change at the bank. Which in my judgment, is more important than penalizing shareholders by a massive
fine of some sort. It's just the cost of doing business
QUEST: It would be difficult to do those other structural things now, bearing in mind that Bank of America, Citi, JPMorgan and Goldman, they have
all paid fines. The DOJ can hardly change the rules at the end of the game for one bank, can it?
LEVITT: No, but they are the controller of the currency. The Federal Reserve Board can work with the DOJ and come up with penalties that are for
more realistic in my judgment, then a monetary penalty. Which is a fine levelled on shareholders, not the management.
QUEST: Are you surprised that the DOJ is still going after this as harshly as it is. All of these years later?
LEVITT: No, I don't think these penalties are necessarily harsh. I think they're the cost of doing business. I think much harsher penalties would
be to impose a management change on the bank, or a change in the board of directors. A change in the culture of the bank that brought about these
problem is more significant than hitting the shareholders with a monetary fine.
Arthur Levitt there, former head of the SEC. Now the European shares ended today much lower. The financial shares were the worst affected. Frankfurt
logged the biggest loss of the major indices. Down nearly 1.5 percent. Hardly surprising, since of course Deutsche is quoted in Frankfurt.
The British Prime Minister, Theresa May, recently suggested she wouldn't reveal her hand when it comes to the Brexit negotiations.
[16:10:00] Today, however, the European Council President, Donald Tusk said that Mrs. May has been giving details of when she hopes to invoke so-
called, Article 50. She told him that article 50, the starting gun, would likely be fired at the beginning of next year.
(BEGIN VIDEO CLIP)
DONALD TUSK, PRESIDENT, EUROPEAN COUNCIL: Prime Minister May was very open and honest with me. She declared that it's almost impossible to trigger
Article 50 this year. But it's quite likely that they would be ready maybe in January, or maybe in February next year.
(END VIDEO CLIP)
QUEST: that's the first time we've actually heard anybody putting a potential date On When Article 50, Certainly so Far, Theresa May has said
that the British government will do it when they are ready with their negotiating strategy.
European leaders though our meeting in Bratislava. And they're doing so at an informal meeting without the British.
Appropriately, they held talks inside a boat, and as the music suggests. They were floating down the Danube River. Whether there was any waltzing
to Strauss, one could certainly say they're considering how to keep the good ship Europe floating, charting a course for union that is politically
and crises, Brexit, migrants, slow economy. Just bearing that in mind, Chancellor Merkel has described it as a critical situation. Jean-Claude
Juncker has described an existential crisis
So I spoke to Slovakia's Foreign Minister, Miroslav Lajcak, and he told me, in Bratislava the EU leaders will be hashing out a plan to regain the
confidence of Europeans.
MIROSLAV LAJCAK, SLOVAKIAN FOREIGN MINISTER: I would rather call into crisis of confidence in the in the common European project. Crisis of
getting trust of our people that European leaders are addressing the right issues and they are doing it in the right way. People no longer trust the
European Union or European agenda. But that is not the reality of it. Because the European Union is a great project. Which needs to be
reinvigorated, refreshed --
QUEST: But you say -- you say it is a great project, but it is a project that is in crisis. It's a project where leaders clearly are out of touch
with the people, and clearly have very little idea how to reengage with the populous movement.
LAJCAK: I cannot agree with you. This is too harsh to me. And I'm a citizen of the European Union. But the truth is that other people have the
feeling, if the leaders do not address the right issues and when they do, they do not do it in the right way. So they ask the question, the leaders
of the European Union to protect them and protect their interests. They are concerned about security. They are concerned about economic
prosperity. They are concerned about migration. European Union has not shown great leadership in addressing these issues. But the leaders are
fully aware of this, and came to Bratislava today to really strengthen the unity and to agree on what is most important and to make sure they're able
to convince the people that the European Union is the best we have.
QUEST: OK, so let me be blunt, minister. Why should Europeans have any -- why should Europeans have any hope that the same politicians who've pretty
much gotten them into this mess can get them out of it? And certainly at the European level in Brussels, why should anyone have any hope in the
Juncker commission, President Tusk on the Council, and the European Parliament, who have all singularly seemed to have failed in the past.
LAJCAK: I don't think so, European Union is the best we have and there is no alternative to the European Union. If it's not performing as well as we
expected, then we have to look into what is the problem, and that's exactly what we are doing. But you have the leaders who have the democratic
legitimacy. Probably, we do not communicate things rightly. Probably we speak more about our national priorities rather than about our common
European priorities. Maybe we are focus more on what we consider particularly important for us, and neglecting what is important for
everyone. So there is no credible, no possible alternative to the European Union to European integration. And this is very clearly acknowledged into
this discussion among the leaders. And I am positive and optimistic that we can overcome the current difficulties. Simply understanding each
other's responsibility for the success of the European Union.
[16:15:00] QUEST: Slovakian foreign minister talking to me earlier from Bratislava, where the leaders were enjoying the Blue Danube.
In just a moment, when we come back. Now Donald Trump made an admission today that he accepts President Obama was born in the United States. He
made the admission after five years after the president produced his birth certificate. We'll talk about it after the break.
QUEST: Donald Trump has reversed his position on the issue that propelled him into national politics half a decade ago. After years of suggesting
that the 44th president of the United States -- that's Barack Obama, in case you were wondering -- after years of suggesting that he was a
foreigner and therefore not eligible legally to be president, he now admits that Barack Obama is, indeed, an American citizen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: President Barack Obama was born in the United States, period. Now we all want to get back
to making America strong and great again. Thank you.
(END VIDEO CLIP)
QUEST: Now, that simple sentence, of course, is by no means as easy or straightforward. Because Donald Trump spent less than one minute --
probably less than 30 seconds -- trying to end a movement that he has lead for the last five years. Over that time, signs claiming that Obama was
born in Kenya, and not eligible to be president, became a feature at anti- Obama rallies.
The president eventually released his long form birth certificate in 2011. But even after that document came out, Trump continually said that the
birth certificate, some were saying, was a fraud. Our chief political correspondent, Dana Bash is in Washington. Dana, you really do on an
average Friday, in September, did Donald Trump decide to do this today?
DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: You, know, it is such a basic question that like everything necessary in this 2016 campaign has
lots of different ways to answer. None of it is simple. But at the end of the day, is that Donald Trump gave an interview to "The Washington Post" a
couple days ago. It was posted yesterday. Where he was asked -- like he is asked periodically -- was the president born in this country, in the
United States? And he said that he didn't want to answer that at this point. And that just completely reignited this whole debate and frankly
opened a lot of wounds from a lot of voters, not just African-American voters, who think this was a five-year quest to delegitimize the first
black president of the United States of America.
[16:20:08] But others who are what we call persuadable voters in the United States, haven't yet decided. Who say, "Wait a minute, do we want this
guy?" So his campaign worked very quickly to try to convince him, him to clean it up. What they got were baby steps of a statement on Thursday
night from his campaign spokesman. And then kind of forced him to give his minor statement that he did this morning. But at the end of the day, as
you pointed out, it raised more questions than answers.
QUEST: Right, because particularly, and I was listening to your excellent analysis earlier in the day, particularly the fact that there has been no
new fact since 2011, when the birth certificate was produced, and he was not prepared to say then what he was prepared to say today, correct?
BASH: Absolutely correct. There is one thing that changed, and that is we are inside of 60 days before an election, where surprise, Donald Trump,
according to most polls is really close Hillary Clinton. And they have an idea that victory could be theirs. But they don't want to have issues that
drag him down that clout it. And they were trying to, as one Republican strategist said to me this afternoon, take out the trash. The problem is I
think that there were some homes in the garbage bag as they walked to the curb.
QUEST: Now, stay with me because we're going to continue talking about another major issue. And it is indeed the question of trade and the trade
talks, particularly TPP, the Trans-Pacific Partnership. President Obama has been meeting with business leaders at the White House. It's all part
of the push to get the so-called TPP past. He acknowledged public anger over trade and indeed, the fact that people want this trade agreement to be
null and void.
(BEGIN VIDEO CLIP)
BARACK OBAMA, U.S. PRESIDENT: if you're frustrated about jobs being shipped overseas and other countries selling goods into our country freely
when we can't sell our stuff in other countries freely. Then you want to get this thing passed. You want to get this thing done.
(END VIDEO CLIP)
QUEST: Dana, you spoke to the Governor of Ohio, John Kasich. Let's face it, everybody knows there will be a very tight window in the lame duck
session of Congress to actually pass TPP, when those leaving members of Congress, who don't care about it, don't care about it necessarily, their
futures in the Congress, can push it through.
BASH: That's exactly right. Because of the anger, frustration, and If your people like the President and the Ohio Governor, John Kasich, they
insist this information about what free trade does or doesn't do. It was really extraordinary though politically to have the sitting governor of
Ohio, Republican -- who was a contender for president on the Republican side -- to lock arms with a Democratic president at less than two months
before an election on a very, very toxic issue in this country. I did have a chance to talk to John Kasich about it. Here is part of our
JOHN KASICH, OHIO GOVERNOR: I think this trade agreement is vital. I mean, if I said this, the two most vociferous opponents of the trade
agreement of Vladimir Putin and Xi, one of the most repressive leaders in the history of China, that in and of itself should tell you why this
agreement is really important.
BASH: You know full well it's not just Vladimir Putin that opposes the TPP. It's your party's nominee, the Republican nominee, Donald Trump and
also Hillary Clinton says that she's not for it now.
KASICH: Yes, pretty amazing.
BASH: Why do you think you can do something with this president that the two people who want to be president oppose.
KASICH: Because I'm an optimist and I know that facts matter. And I think the heat that people get from supporting trade, and I've never been an
ideological supporter of free trade. When I look at it over time, I don't think we -- I think it's a good choice for America to be able to make sure
that we can move our products around the world. I've been in the Republican Party all of my adult lifetime. We've always been for openness
and free trade.
BASH: You are a governor of a major state, sitting down with the Democratic president two months before an election. You're not worried
about the political backlash from that?
KASICH: Frankly I welcome it.
BASH: You welcome a backlash?
KASICH: I welcome the fact that people will criticize me for putting my country ahead of my party. It's time we start doing this in this country.
We are not a parliamentary system. And we were never taught to hate people because we might -- they may be in a different political party. You know,
when it comes to the president, he and I have a lot of disagreements. But there are areas where we can agree.
[16:25:00] And if I can become somebody in the front that leads an effort for people to hear this and say, "You know what, maybe he is right?" What
would I do, shrink and go hide somewhere?
BASH: So, Richard, he said that he is going to work as hard as he can during, as you said, the lame duck session of Congress he would work as
hard as he can in the lame duck session of Congress after the election, before the congress is null and void to get this done, but so much of it
defend depends on what happens in this election. Because of the candidates who want to be president are not for this trade agreement.
Dana, thank you for that interview. Very strong stuff from the governor. Delighted to have you on the program tonight, thank you.
BASH: Thank you.
QUEST: One of Donald Trump's economic advisors says that Trump is trying to send a message to America's trade partners. Judy Shelton told me,
existing trade deals not just NAFTA, never mind deals like the TPP or TTIP with Europe. They need an overhaul.
JUDY SHELTON, ECONOMIC ADVISER TO DONALD TRUMP: I think he is putting our trade partners on warning. That he is prepared to level the playing field.
You notice he particularly brought out currency manipulation. And I give him a lot of credit for focusing on the impact. How you undermine the
principals of free trade if you don't deal with these currency gyrations that end up punishing workers in one country, and others are able to
So he clearly is letting China know that he intends to be serious about that, and not just sweep it under the table. And I even think it is quite
unfair to cast Americans who are concerned about currency manipulations as somehow being protectionist. If you really believe in free trade, you want
a level playing field. And you want countries to play by the rules. In China's case, it's also the issues over intellectual property theft. And I
think he's very concerned about that.
As far as Mexico, I think that were seeing some distortions where goods are shipped to Mexico, and a few things are added and shipped back. What we
really need to do is rework the agreement to be in the mutual interest of Mexico and the United States. And at the same time, both countries have a
great interest in immigration issues. So I think in the end, he's willing to negotiate on a more realistic basis than we have before.
QUEST: Right, renegotiate, fine, but he also said he will withdrawal from NAFTA if there is no negotiation. There is a six month waiting period
under the treaty, so I've been looking. We have seen the sort of disruption that happened with the U.K. as it plans to leave the European
Union. Can we -- can you imagine the sort of disruption, volatility, and uncertainty if the U.S. decided to abrogate NAFTA?
SHELTON: Well, Richard, I think and I spend a lot of time in Europe and was there the day that Donald Trump spoke about the upcoming Brexit
referendum. And there was certainly concern that it would be extremely disruptive, totally negative, and that markets would maybe swoon forever as
a result. But I really think we're seen even in upside. We certainly haven't seen the disruptions and the collapse that had been predicted.
So sometimes, for me the message from that, is that when nations do things that seem rational and in their best interests, and on behalf of improving
economic prospects for their own people, it doesn't mean that they're withdrawing from the global trade system. It just means that they think
that trade needs to be -- needs to take place in a way that benefits all sides. I mean that goes back to Adam Smith. And I think that the goal is
to have genuine free trade that is mutually beneficial, and some of the trade agreements have been somewhat one sided.
Judy Shelton, who is one of the economic advisors to Donald Trump, you heard us there talking on the trade, the TPP, and the TTIP.
The Mayor of London says he's backing Hillary Clinton for president. So my question to him was straightforward. Is the rest of the world incredulous
at the rise of Donald Trump?
(BEGIN VIDEO CLIP)
SADIQ KHAN, MAYOR OF LONDON: If you ask me a straight question, I'll give you a straight answer, yes.
Sadiq Khan, that interview, next.
[16:30:00] (COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a moment. I will be talking to the man whose work on Edward Snowden
became a new movie. The movie is out today.
And think about it. Gluttony and lust, they make for a lucrative combination. Amongst many other things. We're going to meet the taste
makers who are paid thousands of dollars to photograph and eat. For all of that you're watching CNN. On this network the news will always come first.
Donald Trump has been called disgusting by his political rivals after he finally admitted that President Barack Obama was indeed born in the United
States. Trump gave a 30 second statement to that effect in Washington. He didn't apologize for spreading the false rumors, which she has done for
several years. The chairman of the Congressional Black Caucus, which represents black members of Congress, says, "He was appalled by Trump's
brusque climb down."
(BEGIN VIDEO CLIP)
G.K. BUTTERFIELD, CHAIRMAN, CONGRESSIONAL BLACK CAUCUS: This is a disgusting day. Donald Trump is a disgusting fraud. By any definition,
Donald Trump is a disgusting fraud. He started this silliness years ago. By saying that President Obama is not an American citizen. He had no proof
of it. So he started this disgusting behavior seven or eight years ago, questioning the president's citizenship. He would not have done that to
Mitt Romney. He would have not done that to a John McCain, or any other white who was running for president of the United States. But he has
levelled his criticism against President Obama.
(END VIDEO CLIP)
QUEST: At least 35 people are dead after a suicide attack on a mosque in Pakistan. Two children under the age of 10 are amongst the victims. A
suicide bomber detonated himself inside a crowded hall in the mosque in the Mohammed agency. A splinter group of the Pakistani Taliban has claimed
Germany's biggest bank says they will fight against the U.S. Justice Department fine. The U.S. is demanding $14 billion to settle claims that
the bank miss-sold mortgage back securities that led up to the global financial crisis. Deutsche bank shares fell almost 9 percent in Frankfurt.
London's Mayor, Sadiq Khan, says it is crucial that his city has single market access after Brexit. And he believes the United Kingdom must not
rush into negotiations. Mayor Khan is touring the United States.
[16:35:00] He's trying to reassure investors that London is not walled off to the rest of the world after the British referendum vote. I asked the
mayor how he addressed his concerns from big banks who are concerned about the so-called passporting issue.
SADIQ KHAN, LONDON MAYOR: Forty percent of the worlds companies have their European headquarters in London. One of the points I've made to the
government, and they're listening, is when it comes to the government, the U.K. government, the negotiations with the EU is crucial London has a CO on
Why? Because London is the powerhouse for our country. We need to make sure for example, even outside of the EU we can have access to a single
market. You're right to remind me, we've got to make sure even outside of the EU, we can passport financial services. And that's why it's really
important we don't rush into negotiations with the EU. It's right and proper that the government is now doing is due diligence. Seeing what the
needs are of our country and making sure when it comes to serving Article 50, serving notice to quit, we get the best deal possible for our country
and for the EU.
QUEST: What are people asking you? What is the number one question concerning Brexit, concerning the future of London, that people are asking
KHAN: It is reassurance, really, Richard. American businesses, Canadian businesses, entrepreneurs, innovators, investors, want to make sure were
not going to start being in somehow close minded. But we're going to care and be open-minded, outward looking. We're going to still invest in our
young people. One of the key things I discussed today with the entrepreneurs at 1871 in Chicago, was we assure we have ultra-fast
broadband in London. Making housing affordable. How we can make sure were in a be a place where if you're talented and are willing to work hard,
you'll get a helping hand to have your potential fulfilled. That reassurance is really so, so important.
QUEST: I realize it is not for you to tell Americans how to vote, or at least to express too many views on the American general election. However,
that said, have you heard anything -- you have to admire the way I got to that --
KHAN: Ask like a true Brit.
QUEST: -- have you heard anything from Donald Trump in his recent speeches that led you to be more comfortable with his views on immigration or Islam?
KHAN: My concern is this. That there are some people, so-called ISIS or Daesh, who say it's incompatible to have western liberal values and to be
Muslin. And we've shown in America, millions of Americans who are also Muslin. We've shown in the U.K., millions of Brits who are also Muslin.
Proud to be British and Muslim. Proud to be American and Muslim.
And if you give the impression that somehow it is not possible to be a westerner and to be Muslin, you're playing to the hands of so-called ISIS
and Daesh. And all I'd say is this, look, to give the impression that Muslins aren't going to be welcome in America any more by virtue of their
faith, what does it say about this great county? A country that's known for tolerance, for diversity, and for respect.
During my visit, I spent today and yesterday with the Mayor of Chicago. Somebody who was the first mayor elected of Jewish faith. I'm the mayor of
London. The first mayor elected of London of Islamic faith. Two great global cities showing the world we are beacons of tolerance, respect and
QUEST: One of the realities -- look I'm back in the U.K. a couple of times each month and I travel extensively. And the reality is though, overseas
there is sort of incredulity at the possibility of a Donald Trump presidency, isn't there?
KHAN: You ask me a straight question, I'll give you a straight answer, yes. And the perception out of America, and I speak as somebody -- as an
outsider observing, is that there are lots of people with anxieties in America. Like in the U.K., they can't get decent housing. They can't get
their children into a decent school. They can't get the health care they deserve or need. And the easier thing is to blame the other. The easy
thing to do is to play on people's fears rather than address them. We saw this during the EU referendum, where there was an anti-immigrant sentiment
by people to motivate people to vote to leave the EU. And outside of America, people find it is difficult to believe that a country famous for
tolerance and respect, is rejecting that and choosing, according to polls, Donald Trump.
Let's put this into respect. Were delighted to have with this BruceTurkel, chief executive of Turkey Brands. And the author of the book "All About
Them, Grow Your Business by Focusing On Others." We wanted to talk about the idea of perception at the moment. Obviously, it's very relevant with
the U.S. election.
[16:40:00] The perception of Donald Trump overseas as we heard from the mayor, basically, is one of horror that this man could ever get close to
becoming the president of the United States.
BRUCE TURKEL, CEO, TURKEL BRANDS: The saying to remember is perception is reality. What people preserve is what they believe. I have spoken to
friends and clients in Europe, in Asia, in Latin America, they're all horrified. And there horrified for one reason because we have always been
the center of stability. And now we are introducing a loose cannon. And that loose cannon means so much to their own stability.
QUEST: But you can't understand how America has done this. Or I mean hasn't done this because the election is not until November 8. And of
course it's up to the American people to decide who they wish to be president. But they can understand a process that that has allowed things
to get this far.
TURKEL Well, one of the things is democracy allows things do get as far as people hold for them. The other thing is I think that's a little bit of a
misunderstanding. Because for years when were there they've been calling us ugly Americans. Now they're just saying it when were not even there.
QUEST: And when we look, for example, at the opposite perception. Take for example the U.K., and the mayor was talking there about London. And
the perception of London and how things are. People can't understand how the U.K. has voted to leave European Union.
TURKEL Well there is a very clear parallel there. Isn't there? Because a lot of people, the Bregretters, as they call them, were saying "I just did
this as a protest." I didn't really think it would happen. And I think with the third party candidates, with a lot of people trying to make a
statement, that is what is happening in this country right now.
QUEST: How difficult is it for businesses, do you think, with a brand, negotiating the brand during election times when you don't want to be seen
to be taking sides. You want to be seen supporting democracy, but you're in a very difficult position. I mean, I'll give you an example. Yesterday
we had Mark Fields of Ford, who was clearly been clobbered by Trump over Mexico and the car is going to Mexico. But he has to fight back.
TURKEL: He has to fight back, but he doesn't have to use his brand to fight back. Here is the problem. Trump is very good at communicating to
his audience. To tell them what they want to hear. To tell them that he understands them. Well, his audience drives Fords. Like them or dislike,
that is another issue. However, he attacks the auto industry and he attacks Ford, but Ford still has to sell cars to the people Trump likes.
So as you said, there walking on a very, very narrow tight rope. But what they have to remember to do, just like Trump does, is talk to their
QUEST: And finally, you live in Florida which is, you're probably --
TURKEL: That is a euphemism.
QUEST: Yes, absolutely, one way or another. Is it going to be the important state that we believe it is in this election?
TURKEL: The interesting thing about Florida is that even though we're one state, we are somewhere between 7 and 11 states if you look at the way we
vote. And so what happens in Florida is what happens in the country. First of all, most people are from somewhere else. They brought their
local politics with them. And then they live in enclaves that are based on who they are politically. So, yes, Florida is going to make a big, big
difference. Trump has a reputation and a history in Florida. Just like everyone else, some of it's good, some of it's quite bad.
QUEST: Would you like to be responsible for his branding.
TURKEL: well, that would give me a real conflict. But yes, that would be a hell of a challenge.
QUEST: We'll leave it there. Good to see you.
TURKEL: Thank you, Richard.
QUEST: We'll see you in Florida.
TURKEL: I'm looking forward to it.
QUEST: Thank you.
Rebranding with the film. Oliver Stone is trying to change perceptions of Edward Snowden.
[16:45:45] QUEST: Edward Snowden, depending on your point of view, he's either a patriot or a trader. The debate that is divided citizens not only
in the United States but around the world. The NSA contractor leaked documents that exposed mass surveillance programs. And then he fled first
on Kong and now, of course, has political asylum in Russia. Oliver Stone has dramatized the tail in a new film. Here is Edward Snowden's moment of
realization about the extent of U.S. spine on its own people.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE, EXCERPT, OLIVER STONE'S MOVIE, SNOWDEN: Think of it as a Google search. Except instead of searching only what people make public,
were also looking at everything they don't. So, emails, chats, SMS whatever.
SNOWDEN (movie character): Yeah, but which people?
UNIDENTIFIED MALE: The whole kingdom, snow white.
(END VIDEO CLIP)
Oliver Stone's take. On Thursday, the U.S. House Intelligence Committee issued their own scathing report of Snowden. It accused him of lying about
his background. And urged President Obama to deny him a potential pardon before the president leaves office. Here's Edward Snowden's response.
"Congress spent two years writing a report to discourage you from going to see this film. It opens tomorrow." The film itself is based on Luke
Harding's book, "The Snowden Files." Mr. Harding is in London and joined me earlier.
LUKE HARDING, AUTHOR, THE SNOWDEN FILES: Really it is a fast-paced political thriller. I have seen the movie twice. It is a good movie, and
I think for those perhaps confused by the revelations three years ago, it tells the story clearly about how an idealistic young American working for
U.S. intelligence, working for the National Security Agency, was so appalled by what he saw, he took, stole, tens of thousands of secret
documents and jump off to Hong Kong and give them to a bunch of journalists including from my newspaper, "The Guardian". So what it does is bring the
story to life, hopping between continents and explaining some of the serious issues behind it.
QUEST: Mr. Snowden has suggested that perhaps President Obama pardons him before he leaves office. Already a bevy of congressmen and women from the
intelligence committee have written saying we urge you not to pardon Edward Snowden. In their words who perpetrated the largest and most damaging
public disclosure of information. Is there any realistic chance of being pardoned?
HARDING: I think that Snowden is playing a game, stuck in Moscow, being charged with espionage. As you say it is clear the house intelligence
committee which released a report, having researched for two years on the eve of this movie, clearly an attempt to undermine the movie, doesn't like
him one bit, doesn't want him pardoned. But you know, he also has powerful supporters, Bernie Sanders called for a pardon. Amnesty International, the
ACLU, Human Rights Watch, they are all behind him as well.
And he has tremendous sympathy, in Latin America, in Germany, in Europe, so I think he thinks that with time it can be possible. But I think we are
talking years here rather than months.
QUEST: From your knowledge of Mr. Snowden, how is he coping?
HARDING: I was in Moscow four years as "The Guardians" correspondent there. And I was actually kicked out of the country in 2011. So I know
Moscow very well, I know the FSB very well which is the KGB updated. It is Vladimir Putin's spy agency.
And clearly Snowden's predicament is not great. Russia is a pretty dark place and then Putin, I think he would rather be almost anywhere else. But
he has few options. But really he could still debate, he gives interviews, he participates. He writes software on privacy, he sees his girlfriend --
my colleague talked to him on Monday by video link, and he seems in good form.
He lives on U.S. time. He is a geek, he spent a long time on the internet anyway before all of this happened he spent a lot of time on the internet
and he still does that. I think he is playing a waiting game until the political dynamic in Washington changes and then maybe he can come back to
[16:50:00] QUEST: A fair and honest assessment. If you're at a trendy restaurant, and the beautiful meal arrives, it is hot in the kitchen but
don't eat it just yet. Oh no, it is not a valid meal unless you have actually taken pictures of it, and then post it everywhere and anywhere.
We'll look at how Instagram is changing the food industry after the break.
QUEST: More and more before when you go to a restaurant, before any eating can commence, you think of course you have to take a picture. You have to
make sure the world sees exactly what you're eating. And that picture can be seen on social media. Today the new iPhone hits stores, a major upgrade
to the camera unlike this one.
The iPhone 7 Plus had two cameras. So we wanted to talk about how all of these cameras are creating new business opportunities. You enjoy Clare
Sebastian's report. While enjoy these interesting things, which one.
CLARE SEBASTIAN, CNN, SENIOR PRODUCER: We go to lunch, but we can't eat it yet,
We can't eat it yet. We have to style the table.
SEBASTIAN: If you want to practice self-control, just have lunch with New York's top Instagram foodies.
ALEXA MEHRABAN, EATING NYC: If the place is right I will stand on the chair.
SEBASTIAN: At 24, Alexa Mehraban is known as what is an Instagram influencer. Her account Eating NYC has more 200,000 followers clamoring
for her a latest hashtag, food porn. So much so that now restaurants are now clamoring for her attention.
MEHRABAN: A bunch of restaurants invite me, they say they have a new menu, or they want me to come in and try the food and share the photo with my
followers. The exposure for them is great.
SEBASTIAN: Her day job is now running PR for this restaurant chain, she also made close to $50,000 through Instagram creating sponsored content for
brands including Oreos and Kellogg's. at our next stop for ice cream, naturally, Instagram is about more than just exposure.
NICK MORGENSTERN, FOUNDER, MORGENSTERN'S FINEST ICE CREAM: It is a great way to track how our customers are interacting with what we do. How they
respond to the flavors on the menu. We adjust the menu based on things that people like more or less.
SEBASTIAN: This is the trickiest of all I think. It is dripping down my hand.
MEHRABAN: Yes, this is like a shower.
SEBASTIAN: The end result in Alexa's case at least.
MEHRABAN: Perfect. I'm so excited.
SEBASTIAN: Instagram has helped create cults out of baked goods. First the cronut, but now this.
[16:55:00] MEHRABAN: I feel like I want to put this closer to the light, so you can see the colors, like a crescent but it is kind of taken to a new
level. And it is super trendy.
SEBASTIAN: New York's Instagram influences are a close knit community. And eating dinner with them, well, it is nothing short of extraordinary.
UNIDENTIFIED FEMALE: Is this what happens?
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: I think that restaurants are now more aware of having photogenic dishes.
UNIDENTIFIED MALE: People care more about food right now than they ever have.
MEHRABAN: Instagram is an outlet that allowed that passion for food to explode
SEBASTIAN: And after the day we had, that is not the only thing about to explode. CNN MONEY, New York.
QUEST: My mother always taught me don't play with your food. No, eat it instead.
QUEST: Tonight's profitable moment. In the case of Deutsche Bank, it is not a question of if, but just how much money the bank is going to have to
pay. Whether it is between $4 billion and $10 billion. Yes, Deutsche can pay it but not without damage to their capital base. And almost certainly
having to go back to shareholders to increase its reserve rations.
But that is the price that Deutsche is going to pay for the miscreant deeds of several years ago. Other banks have paid it, now it is Deutsche's turn
to pay the piper, in this case, the U.S. Justice Department. That is QUEST MEANS BUSINESS" for tonight. I'm Richard Quest in New York. Whatever
you're up to in the hours ahead, I hope it is profitable and we'll be together again on Monday.