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QUEST MEANS BUSINESS
Violent Protests Rock Charlotte After Police Shooting; U.N. Hots Summit On Migration; "State-Sponsored" Cyber Breach at Yahoo; Trumps Tax Plan Comes at Trillion Dollar Cost; Hardline Hungary Migrant Plan Sparks Criticism; Chan Zuckerberg Pledge $3 Billion to Fight Disease; EU Won't Rule Out More Tax Bills; Japan's Opposition Selects First Female Leader. Aired 4-5p ET
Aired September 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: A strong day on Wall Street out of the gate. It up and it has stay high throughout the course of the session.
Women for Women International ringing the closing bell. And that's what you call a firm gavel to bring trading to a close. Nowhere in the world is
any major market open on Wednesday. It is the 22nd of September.
Tonight, a state sponsored attack on .5 billion internet users. Yahoo says it's the been the victims of a massive data breach. We'll give you the
Making America great again comes at a cost. Donald Trump's tax plan could cost the country trillions, although it's less than before.
And Hungary's prime minister announces his migrant plan, round them up and ship them out. The country's foreign minister is live on QUEST MEANS
BUSINESS tonight. I'm Richard Quest in New York, and I mean business.
Good evening we're going to be getting to our business agenda in just a moment. We have been hearing in the last 20 minutes or so from the family
attorneys of Keith Scott, that's the African-American man shot dead by police in North Carolina. The latest police shooting in the United States.
It is dominating the political and social conversations across the U.S. and highlights the countries racial and economic inequalities. The details of
what we know over the last two days of disturbances. More than 40 people have been arrested. A dozen police officers and civilians have been
injured over two nights of violent protests in Charlotte, North Carolina.
The unrest itself -- you'll be aware -- was sparked by the shooting death of a black man at the hands of the police -- a black police officer
actually did the shooting. A state of emergency is in effect. The state National Guard has been activated, and city officials on all sides are
calling for calm as everybody gets ready for not quite a hot evening, but waiting to see what happens tonight.
Joining us now is Sly James, the Mayor of Kansas City and the president of the African-American Mayors association. Mr. Mayor you, sir, for joining
us. The attorneys say that they want to see the video. They want to see the police video, the video that even the chief of police admits at the
moment is conclusive on the question of whether Scott was pointing a gun at the time he was shot dead. What is your understanding?
SLY JAMES, PRESIDENT, AFRICAN-AMERICAN MAYORS ASSOCIATION: Well, my understanding is that there is a protocol related to the release of video
evidence of this type. That it needs to be reviewed by the city council, the mayor, and others before release. I have no understanding as to where
in that process this particular video is, but it is my hope that it will be released in a timely fashion. And that when released, it will some impact
on the situation in such a way as to calm the situation down so that no people are hurt.
QUEST: There is a definite disagreement on core fact of whether or not he had a gun, whether or not it was being pointed, or, as one family member
says, he actually had a book at the time. And this has not been clarified or established beyond certainty, has it?
JAMES: To my knowledge, there has not. There is that disagreement, and I think that that disagreement may be at the heart of the dis-rest and
QUEST: Sir, do you find yourself in a very difficult position because on the one hand it's a member of African-American community who has shot dead
in tragic circumstances, and questionable circumstances at that. But obviously, as the president of the African-American Mayors Association, you
have a specific duty to call for calm?
JAMES: Well, that's absolutely true, but the African-American Mayors Association represents the interests of over 500 African-American mayors
throughout the country. We have under the leadership of Mayor Toni Harp of New Haven, Connecticut a community policing task force that meets time to
time. We always, as mayors, want to have our communities be safe, calm, and peaceful. We also want our communities to be just, and it is not just
the shooting of Mr. Scott in Charlotte that has that has caused disquieting, but also the shooting Mister Crutcher in Tulsa that has caused
disquieting, and all those that have come before.
[16:05:00] QUEST: A blunt question to you, sir, for a straightforward answer. Why do you think these shooting events take place? It is it
inherent, endemic racism within the police force, or is it simply, you know the arguments better than I do, sir, trigger happy cops and it's African-
Americans in the way?
JAMES: Well, first of all I will tell you that I have a great deal of respect for not only our police department and the officers, but police
departments and officers elsewhere. I think there are number of factors. I think in some instances it is racism. In some instances, it is poor
training. In other instances, it is a lack of understanding of how to decelerate and de-escalate situations. And what to do in situations rather
than use force.
There is a number of factors that feed into it. All of them are things that need to be quelled. But one of the mayor problems is there is a total
lack of trust, in some instances, between the policing and community and the other community. That has to be changed if we're going to go forward
with some sort of understanding and certainly with less violence.
QUEST: I want you to listen, sir, to the comments of both political candidates from the major parties.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Our country looks bad to the world. Especially when we are supposed to be the world's
leader. How can we lead when we can't even control our own cities?
HILLARY CLINTON, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: We've got to break down barriers of systemic racism. Including under investment that
have held communities of color back for generations. That's part of building an inclusive economy too.
(END VIDEO CLIP)
QUEST: Two very different policies, Mr. Mayor. Obviously, Donald Trump espousing there what he's already said, a stop and frisk policy. And also
what one may be regarded as a much more immediate policy for dealing with these events. Versus Hillary Clinton's breaking down systemic racism,
training, a longer term policy. Can you find favor with Trump's views?
JAMES: I cannot. The stop and frisk policies have been tried and abandoned and ruled unconstitutional. They were racial profiling at its
worst. They are not proven to reduce crime or to lessen tensions. And in fact, tribute to the tensions between police and community members. That
is a short-sighted, ill advised, unconstitutional, unworkable plan, and it's not a policy, it's a sound bite spoken by someone with no connection
to the black community whatsoever. Versus a recognition that in the African-American community, there has been disinvestment. There is a need
for reinvestment and training of police in order to deal with it. So I do not favor Mr. Trump's comments and I think, in fact, they are dangerous.
QUEST: We'll talk more about this later in the program in the balancing of the arguments. Thank you, Mr. Mayor, we appreciate your time this evening.
JAMES: Thank you, sir. Have a good day.
QUEST: The breaking news tonight, and the other one on our business agenda. The largest and perhaps most significant cyber breaches in tech
history. Yahoo has confirmed it was a target of an astonishing hacking campaign, 500 million accounts were affected. Now, the rumors have been
around since August. It was a hacker called "Peace." He's claiming to be selling data from 200 million users. It's much worse than thought.
There are views and belief that's it was state sponsored. That's according to what Yahoo says. And the beach happened in late 2014. This is the
statement from Yahoo. "We are coordinating closely with law enforcement on this matter and working diligently to protect you." The information stolen
could well include the following pieces of data. Names, email addresses, telephone numbers, dates of birth, hashed or encrypted passwords and in
some cases, encrypted or unencrypted, security questions and answers. Jens Monrad is a senior intelligence analyst with cyber security from FireEye.
He joins me from Copenhagen via Skype. If this happened in 2014, sir, why is the information only now trying to be sold when much of it will be out
JENS MONRAD, SENIOR INTELLIGENCE ANALYST, FIREEYE: Yes, thank you for having me. I think there are multiple reasons for it. One of them being
that we did actually observe within our intelligence division in August that a threat calling himself "Peace of Mind" were advertising for 200
million Yahoo Accounts. But the thing is also that whenever we see media attention given to these sort of breaches and potentially also the threat
actor, they try to dial down the attention by removing advertisement, and then sit on the data for a longer while until the medias will focus on
[16:10:06] QUEST: I understand how serious this is, but data going back to 2014, how much of this -- this doesn't negate that it is pretty awful and
it's been taken -- but how much of the data would still be relevant now, do you think?
MONRAD: I think unfortunately a lot of the data will still be available. We do at as users have a tendency to reuse our credentials. That being
user names and passwords in other social media pages well as more sensitive validation systems. So I think in many instances, the data is still usable
for an attacker.
QUEST: Jens, is it your understanding that Yahoo has known about this for some time? I mean if the -- if the hack happens in 2014, we get the first
reports about it in August 2016. That suggests there is 18 months to two years when Yahoo was not even aware they had been hacked?
MONRAD: I don't want to speculate whether or not they were aware of it. But what I do know is that we observed it in August, and there were
interviews given by the alleged hacker to various online medias. So at least there was information published in the August timeframe.
QUEST: Jens, good to see you, sir. Thank you for giving us that perspective in Copenhagen tonight. You'll be aware of course, Yahoo is on
the verge of completing its merger with a company saving merger deal with Verizon. Paul La Monica is with me now. Verizon must have welcomed this
announcement like a bad dose of pneumonia.
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: Yes, this is not great news for Verizon. And they say, telling CNNMoney that they've only found out
about this in the past couple of days. They are confident that Yahoo is working with authorities and will get to the bottom of this. But it does
beg the question, is the merger of Verizon and Yahoo at risk? I'm not sure I'd go that far. Because LinkedIn got hacked a couple of years ago.
Microsoft still bought them.
QUEST: Right, but here's the difference though. Yahoo has just done the deal. Now if Verizon is saying they've only just found out about it.
Either Yahoo Didn't Know about It or Yahoo didn't tell them about it.
LA MONICA: Correct. And if it is the later, and I don't want to speculate that that's the case. If it is the latter that is much more damming
problem for Yahoo in its attempt to sell that core business to Verizon. What's interesting here is that Yahoo stock was up most of the day.
Finished slightly lower. Verizon actually up. I think a lot of investors maybe they are -- just they seen so many of these hacks that they are
almost not even blinking and eye anymore that it is happening. They almost expected to happen. It's a little glib I think on the part of Wall Street.
But I think also Yahoo is still very closely tied to Alibaba and Alibaba has had an amazing comeback lately. So maybe not the worst of news for
Marissa Mayer, but it isn't great news, that's for sure.
QUEST: Paul La Monica, good to see you sir.
LA MONICA: Thank you.
QUEST: As we continue our program tonight, the Hungarian Prime Minister calls for migrants to be shipped off to an island, those migrants who have
arrived illegally as tragedy once again strikes in the Mediterranean. The Foreign Minister of Hungary joining me on QUEST MEANS BUSINESS this
[16:15:43] QUEST: Hundreds of people are feared dead after a boat, carrying some form 450 migrants, capsized off of the coast of Egypt. The
boat was bound for Italy, 163 people have been rescued and 43 bodies recovered.
Now, if you put it to the totally of the year, more than 3,000 people so far this year have died attempting to cross the Mediterranean according to
the International Organization for Migration. The director general of the organization is William Lacy Swing. He spoke to me from the United
Nations, which is hosting a summit on refugees and migrants. And which has for the first time agreed on policy. But it's not going to come in for two
years while further negotiations take place on exactly what that policy should look like. I put it to him that the summit of leaders on migration
is likely to result in promises, not results.
WILLIAM LACY SWING, DIRECTOR GENERAL, INTERNATIONAL ORGANIZATION FOR MIGRATION: I can understand the frustration implicit in that question,
because a lot of the NGOs and the academic world have been very critical that we had a super urgent issue with people dying in the Mediterranean and
elsewhere and now we're going to take two years to come up with another international conference on migration. But I think, however, we shouldn't
overlook the significance. This is the first time in 71 years of the UN's existence that the General Assembly has been able to bring has of state
together around the question of migration, particularly a regular migration. And I think that's a good thing in itself.
The process it will put in place is something that we will lead together with the UN Secretariat. And I think we need two years, probably to come
up with proper policies. Because right now, and I'm very grateful for this opportunity to speak to you, because the atmosphere and the public dialogue
QUEST: You say it's toxic. I was going to use the word poison. It's the same thing differently expressed. If you listen to the speeches, nobody
wants to really take responsibility for the results.
SWING: No, and this is the reason we need this spirit of time and a process to try to bring them together to a greater understanding that first
of all, given the demographic and equities now. Demographic deficit and more jobs be sought in the South. We're going to have to have -- is going
to be inevitable, large-scale migration. It's going to be necessary if our economies are going to flourish. And is going to be very desirable if we
have proper policies that were using our resources to do this properly.
QUEST: But then what do you make of decisions like the Hungarian government with its October referendum on whether or not to take part, or
on the EU quota system. Which is -- what the critics would say is stoking up and anti-immigrant fervor in the country.
SWING: No, it's extremely unfortunate. The situation in Europe would have been perfectly manageable if the union would have been able to function as
a union is supposed to. I think Chancellor Merkel took a very courageous and visionary decision to take in the migrants. And I think one should
have assumed that the other 27 would follow and take their share of the responsibility. Since it didn't happen, we have a we have now, which is
great dysfunctionality. And what I would call refugee amnesia. Our organization was founded in 1951 to take European refugees from the ravages
of the second world war to the safe shores of the U.S. and Canada.
QUEST: I realize you're a diplomat, sir. But even your diplomacy must have its limits. How offended were you by Donald Trump Jr.'s Skittles
reference to describe refugees?
SWING: again, I think it's something that's dreamily unfortunate. It feeds the narrative and perpetuate the stereotype that somehow migrants
bringing in terrorism or they're bringing in criminality. This is absolutely not the case. In fact, they are much more careful than our own
QUEST: we continue our talking about migration in the refugee crisis. How about this quote for you, "Those who came illegally must be rounded up and
[16:20:01] The words of the Hungarian Prime Minister, Viktor Orban. Who is calling for asylum-seekers to be put in refugee camps outside of EU
The Prime Minister says an island or off the northern coast of Africa would be appropriate locations. Now Hungary, the country is due to hold a
referendum, and the referendum on the question of EU quotas for individual member countries. That referendum is in 10 days' time. The question is,
should Hungary accept an EU quota system for resettling refugees? Here's the risk of letting new migration problem go unchecked, as the Hungarian
Prime Minister put it speaking to his country's parliament.
(BEGIN VIDEO CLIP)
VIKTOR ORBAN, HUNGARIAN PRIME MINISTER (through translator): We lose our European values and identity the way frogs are cooked in slowly heating
water. Quite simply, slowly there will be more and more Muslins and we will no longer recognize Europe.
(END VIDEO CLIP)
QUEST: Strong language from the Prime Minister. We'll talk to the Foreign Minister in just a moment. But to put this into perspective, Hungary was a
key transit point for migrants. That's more than 400,000 people tried to cross the border coming from Syria and out toward the eastern Mediterranean
and Eastern Africa, up towards Europe.
Now Hungary dealt with that by building fences along its border and setting up transit zones to hold asylum-seekers. No one for a moment doubts that
the Hungarian government was indeed facing a very serious and difficult issue at the time when they did what they did. However, human rights
watchers accuse the country of using those transit zones to delay the asylum process. The rights groups say Hungary is failing to protect the
vulnerable refugees and it documented instances of violence against migrants.
To put all this together just to show you how febrile and perhaps toxic the environment has become. Luxembourg's Foreign Minister went even further
and has accused Hungary of treating refugees, in the minister's words, "Worse than animals." He called for Hungary to be expelled from the EU.
And accusation in a challenge which has been rejected by the Austrian in the German foreign ministers.
Joining me now over here is the Hungarian Foreign Minister. Minister, good to see you sir.
QUEST: We have a lot to cover.
Yes, definitely. I'm ready.
QUEST: Right, first question really comes along with this idea of building walls. And this idea of referendum on October 2. Firstly, do you have
sympathy Right, first question, really comes along with this idea of building walls.
And this idea of the referendum on October the 2nd. First, do you have sympathy with say Donald Trump's policy over wall against Mexico and
extreme vetting of Muslims coming into this country.
PETER SZIJJARTO, HUNGARIAN FOREIGN MINISTER: To be very correct, we have a fence on our border.
QUEST: A fence is a wall. A wall is a fence.
SZIJJARTO: No, no, no. A fence is a fence and this is not the only fence in Europe. I told my Bulgarian colleague just recently that that I
actually admire him, communication wise. Because they have built a very strong fence on the Turkish Bulgarian border, a very long one. But no one
accuse them and no one criticized them. But no one criticized Great Britain either. Building a fence or a wall at Calais. So I think that the
level playing field should -- a double standard should not be applied.
QUEST: But the difference is -- the difference is that you're aware, minister, their politicians did not make such inflammatory comments as your
Prime Minister did.
SZIJJARTO: What do you mean?
QUEST: Let's look at what he said. Just today he said. "We lose our European values and identity the way frogs are slowly heating water. Those
who came illegally must be rounded up and shipped out."
SZIJJARTO: Yes. Can I comment?
QUEST: Of course.
SZIJJARTO: Actually there are rules and regulations according to which we live our lives. There are rules and regulations how you can cross borders.
There are rules and regulations with which you have to comply with if enter a territory of another country. And if there are people who buy will, do
not respect our laws and regulations, violate our borders, we will not accept them. We will not receive them. You can be sure about this.
QUEST: It's the tone, minister. It's the tone of the Prime Minister.
SZIJJARTO: What's wrong of the Prime Minister?
QUEST: It's nasty. It's mean spirited, and it is against the concept of refugees.
SZIJJARTO: I really do respect your opinion, although I do not agree with that. Because I think the nasty fingers, the accusation that have been put
on my country recently. That's because we comply with all the regulations and rules which are common and which are valid in the European Union. You
must know that we are member of Schengen zone. And it's a common regulation which says that we at the external border of the Schengen zone -
- do have the obligation that we have to protect our border and we have to make sure that our borders will only be crossed through the border crossing
station during opening hours. If you don't comply with this argument then we could be accused by our European friends, why we don't comply with these
[16:25:01] QUEST: Under your own words to the United Nations this week, you said, "It's necessary to find a balanced instead of emotionally lead
and an inspired debate." But it's your Prime Minister, sir, that is leading the emotional rhetoric.
SZIJJARTO: No, that's not right. He's not leading emotional rhetoric. What he does, he actually sticks to international laws and regulations.
QUEST: He is whipping up an anti-migrant fervor in your country.
SZIJJARTO: No, he does not. I have to refuse that. The thing is that here we have to stand on a very stable solid basis of international law.
What international law says? International law that right to a safe life is a fundamental human right. But is not a fundamental human right to pick
a country you would like to live in. And it's not a fundamental human right to violate borders between peaceful countries.
QUEST: Is it -- you may be familiar with the story in this country, of Donald Trump Jr. and the skittles reference, which is an American candy.
He basically referred to migrants as if they were candy and would you eat candy if it would kill you. Your Primer refers r refers to migrants as
frogs cooked slowly in heating water.
SZIJJARTO: No, of course he does not refer to that. What we think in this respect is that, yes, we do have to protect our country. Yes, we do have
to protect Europe. Because there are rules and regulations, with which we have to comply. And then you know, it's unacceptable, it's really
unacceptable, that there were 400,000 people last year entering territory of our country. Violating our borders, attacking our police and not
complying with our regulations. Occupying railway stations, railways, blocking them. It's unacceptable. And we will not accept it in the future
either, even if there is a huge pressure on us from media or any other friends all around the world.
QUEST: Let's look at the referendum. You don't have a referendum on your nuclear power plant. Your second nuclear power plant which is being built
by Russia. Which is a controversial issue in itself.
SZIJJARTO: I sorry. Who did have a referendum about nuclear power plant? UK, France, Finland --
QUEST: No, my point is, let me finish, sir, let me finish. But you don't have a referendum on one controversial issue, so why have a referendum on
this issue? Bearing in mind it's part of EU law, the decision, so if you lose the referendum, what are you going to do?
SZIJJARTO: Well, I think this is most important question regarding the future of Europe. Whether we let the European Commission to push European
Union member states to give up part of their sovereignty that Brussels would like to tell us whom we have to let come in our country and who we do
not let come in our country. And it is only the Hungarian people who can make a decision about that regarding Hungary. And I understand. I
understand that everybody very angry in Europe. Because there's a growing gap between the European people and the European political elite. European
political elite is actually afraid of asking people about this issue because they know that the people do not agree with them.
QUEST: So what are you going to do if you lose? Because in the Brexit case --
SZIJJARTO: We're not going to lose.
QUEST: Well, so you say, sir. But humor me for the purposes of the question. In the Brexit case, it was a case of inner out. They didn't
question the policies. It was basically do you want to leave. But in your case you're actually going against the policies. So if you lose, what are
you going to do?
SZIJJARTO: OK, but I think you're much more experienced than me and you know much better than me that the sentence starting with if in sports and
politics does not make sense. But we will not lose the referendum. But anyway, any outcome of the referendum will be respected by us. Because we
are a democratically elected democratic government. So we always act according to the will of the people. We will respect the decision of the
referendum whatever it is going to be.
QUEST: in the event that the referendum passes, and you know, you do reject it. It's going to be very difficult isn't it? I mean effectively
you're going to be turning around to Europe and saying, well, that's your policy. We're not going to follow it.
SZIJJARTO: Well, actually, well we don't want to follow this European policy. Because we think it's a bad European policy.
QUEST: So you want John Claude Juncker a la cart. Which is what he said the British can't have. You can't pick and choose. You want to pick this
one but not that one.
SZIJJARTO: In democracy and the European Union is supposed to be a democracy, we as a sovereign country do have the right to say whether we
agree or do not agree with certain policies. And we definitely totally disagree with the current European migrant policy, because as bad. It's
harmful for Europe, very harmful for Europe. So that's why we totally reject the quota system, because it is on implementable. It's against
common sense and it violates the current European regulations. have the right to say whether we agree or don't agree with certain policies. And we definitely don't because it is bad, it is hard for
Europe. Very harmful for Europe, so that is why we reject the quota system if is nonsense, and it violates the current European regulations.
QUEST: We'll wait and see what the good people of Hungary vote.
SZIJJARTO: Yes, definitely.
QUEST: Can we turn to the economy finally? How worried are you that the perception of your country is turning very sour? The external perception.
[16:30:00] You get roughly $25 billion of structural funds from the EU, between 2014 and 2020. It's a sizable part of the budget. How worried are
you that inward investment is going to turn around and say, don't like the look of what's going on there?
SZIJJARTO: You know, this morning I met altogether nine American companies. Three of them informed me they decided in favor of new
investment in the country. The 600 head count, the people they employed so far. We have $9 billion of American investment already in the country. We
have 85 billion euros of FDI stuck in the country. We have the highest FDI for GDP ratio in the region. You know, I have to tell you that last week
we were even upgraded by an institution which usually downgrades us. So I have to tell you that in this case I can share good news with you.
QUEST: Right, I'm out of time. One answer, Donald Trump or Hillary Clinton?
SZIJJARTO: I'm not an American citizen, I cannot decide.
QUEST: It was worth a try. Good to see you, minister.
SZIJJARTO: Thank you.
QUEST: Thank you very much indeed.
We'll continue to talk about Donald Trump and Hillary Clinton, their economic plans. Who would increase the deficit and by how much? It is
QUEST MEANS BUSINESS. We're live in New York, good evening.
QUEST: Hello, I'm Richard Quest. There's a lot more QUEST MEANS BUSINESS in just a moment. I'm going to be talking to one of the scientists leading
Mark Zuckerberg's quest to cure all disease.
We'll sit down with the first female leader of a Japanese political party as she breaks Japan's steel ceiling. We've got all of that still to come.
But of course, this is CNN and here -- never mind those other networks -- here the news always comes first.
A state of emergency has been declared in the U.S. city of Charlotte after a second night of violent protests. The unrest was sparked by the fatal
police shooting of a black man. A short time ago the lawyers for the man's family said family members will watch the video of the shooting later
tonight. They said they will not release that video to the public.
At least six people have been killed and 16 wounded in airstrikes in the rebel held Aleppo. Aleppo media Center activist told CNN, the airstrikes
were addition to artillery and missiles being launched from areas near the front lines of the rebel held areas.
Israel's Prime Minister, Benjamin Netanyahu, invited the Palestinian president, Mahmoud Abbas, to speak to the Israeli parliament. Prime
Minister Netanyahu made the offer at the United Nations General Assembly. He said he would also gladly visit the Palestinian parliament in Ramallah.
Four crewmembers have been arrested after a boat believed to be carrying 400 migrants capsized off the Egyptian coast, according to a state run
[16:35:04] Hundreds are feared to have died, 163 people have been rescued, 43 bodies have been recovered. The boat was headed for Italy.
Yahoo has confirmed rumors. It was the target of a major data breach in 2014. The tech company says at least 500 million of his user accounts were
stolen. It believes the incident in their words, "Is state sponsored." it comes as Verizon is working on a deal to buy Yahoo.
Donald Trump's proposals for taxes and spending would add exponentially more to America's debt over the next decade than Hillary Clinton's. That's
according to new estimates from the Committee for a Responsible Federal Budget. If you look at the numbers, Secretary Clinton's plan adds about $2
hundred billion to the debt. Trump's plan would add about $5.3 trillion to the debt, although it come down since they've made major tweaks to their
Maya MacGuineas is the president for the Committee for Responsible Federal Budget. Good luck to you, ma'am. Having gone through those numbers in
excruciating detail. But, the gist is still the same as I understand it. Trump's plan raises the deficit, less than before, but still considerably.
MAYA MACGUINEAS, PRESIDENT, COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET: So that's absolutely right, and good luck to us indeed. It is a depressing
election when it comes to the candidates making fiscal policy. Addressing the challenges that this country has and putting forth realistic policies
that would deal with this and other economic challenges a priority. We are not seeing what we would have liked to given the fact that you take a step
back the overall situation here is debt is at near record levels. The deficit is growing. Interest payments are the fastest growing part of the
budget. And neither candidate has plan that would put a single penny towards slowing the growth of the debt. So is not a good starting point.
QUEST: Except by your own calculations you do not account for increased economic growth that would come as a result of the policies, and obviously
what Donald Trump says is his policies would generate faster growth. Four percent is what he told us he was virtually guaranteeing, and that would
MACGUINEAS: That is an excellent point. Our analysis it done in the conventional scoring way that we do with budgets. So it does not look all
of the growth that the down Trump campaign has claimed they would have. It also does not look at the slower growth that would result at some of his
policies. So let me take you through them.
He has tax cuts that would help grow the economy. He has changes in regulations, though not very specific, could definitely help promote
growth. Same is true for his energy proposals. On the flipside, he has trade proposals and immigration proposals that outside analysts have found,
would harm growth in the U.S. And certainly the additional debt that would result of all of his policies put together would be drag on growth. So it
seems actually quite likely that if someone did a comprehensive dynamic score, it would show that this plan could hurt growth, not necessarily help
it. The other piece I would say about growth is we're facing real demographic challenges in the U.S., just like other countries are. That
makes high growth rates of 4 percent very unlikely.
QUEST: So finally and briefly, is it realistic for anyone to try and balance the budget? Bill Clinton was the last one who ran a budget
surplus. The deficit rose to its high levels because of gross debt to debt because of the financial crises. It's unrealistic that growth of 1.1
percent that anybody is going to be able to reduce the deficit.
MACGUINEAS: I would say that trying to balance the budget should not be our goal. Our fiscal hole is so large and we face the very severe
challenge of the aging population. What I think we need to do is put our debt on a path that it's not growing faster than the economy, which is
where it is right now. If you slow the growth of the debt so that the economy is growing faster than the debt, it would become sustainable. That
would be a realistic goal.
QUEST: Good to see you, we'll need your help as we go through the election. Thank you, ma'am.
MACGUINEAS: Thank you.
QUEST: It was a good day for the markets in the U.S. and all over the world. Come join me over at the super screen, as they staged a furious
rally. We gave back triple digits. It was over 100 at one point, but still 98.76. I think it was the second or third day of good gains. Up
half a percent over 18,000 comfortably. And as you can see straight out of the gate, never looked back except for a wobble just after lunchtime.
[16:40:00] And there's also a record high for the NASDAQ with all gaining after Wednesday's Fed decision not to raise interest rates.
Facebook's Mark Zuckerberg and his wife Priscilla Chan has pledged several billions of dollars to fund medical research over the next century. Now
one of the biggest investments is $600 million in a bio hub in partnership with Stanford University. The Zuckerberg's hope to inspire other people in
countries to rally around their lofty cause and cure disease.
(BEGIN VIDEO CLIP)
MARK ZUCKERBERG, CEO, FACEBOOK. The more people who believe that we can cure all diseases in our children's lifetime, the more likely we are to get
our government to invest in it, and then the more likely it is to actually happen. So this is something that we can all come together, and well, we
need your help. And it's an area where we can all do something very important together.
(END VIDEO CLIP)
QUEST: Stephen Quake is a professor of bioengineering at Stanford and will help lead Zuckerberg/Chan bio hub. I read this story, sir, good to see
you. I'm confused. When they say we're curing disease, which disease or all disease?
STEPHEN QUAKE, PROFESSOR OF BIOENGINEERING, STANFORD UNIVERSITY: You know, let me start by saying this is not only an engagement with Stanford
University. the bio hub was actually working with all three major universities in the Bay Area, Stanford, UCSF and Berkeley. And part of the
aim is to team up and help them bring together formidable research faculty to attack a very large problem, which as you said, is to try to cure,
manage or treat all human disease. And it's an audacious goal. A very challenging one. No one's quite sure is going to be able to be done by the
end of the century.
QUEST: But when I read this, the word I thought of was hubris. Somebody coming along and saying, well, were going to give $3 billion or 4 billion
or even 5 billion and were going to cure disease. I don't deny or doubt the intentions question but I do question the practicalities.
QUAKE: I think Mark was very clear in his comments that he does not believe that this is sufficient investment to cure all human disease. And
in fact, one of the three things they're trying to get done with their science initiative, Priscilla Chan and Mark Zuckerberg, is to simulate more
spending on research. And they know they're resources are not sufficient to do that and they're part of the effort is to try to increase science
funding worldwide to achieve the goal. So I think they have a realistic perspective in that sense.
QUEST: I saw also Bill Gates is involved, and complimenting it. Now look, when Gates created his foundation, he made a quantum shift and leap in the
way philanthropy was done. It wasn't being done in the old-fashioned way. So what's different about the way the Zuckerberg/Chan foundation will
attack this? Because let's face it, there's plenty of foundations from the cancer society upwards that are all looking at diseases. So what's
QUAKE: Yes, one of the unique things that we're doing here at the bio hub and the larger Chan/Zuckerberg Science Center, is to focus on engineering
and tools development as the driver of discovering new ways to cure and treat disease. And that's a very unusual approach.
QUEST: Sir, good to see you. Thank you for joining us from Stanford, we appreciate it
QUAKE: Thank you.
QUEST: The U.S. government has warned the EU's decision to bill Apple $14 billion could harm business relations between America in the EU. The
official that made that decision says more tax bills may be on the way, and brave Commissioner though she was, she went to Washington to tell them the
message. QUEST MEANS BUSINESS.
[16:45:57] QUEST: Europe's Competition Commissioner says more Apple style tax bills could well be on the way. Margrethe Vestager has wrapped up a
trip to Washington only weeks after demanding that Apple pay more than $14 billion in back taxes. Now she met with the Treasury Secretary, Jack Lew
and she met other senators in Washington. And they warned her that her decision may damage relations between the EU and the U.S. on business. I
spoke to the commissioner while she was in Washington, and I asked her, all things considered, putting them on a controversial nature of what she had
just done, how was she received?
MARGRETHE VESTAGER, EUROPEAN COMPETITION COMMISSIONER: People were very frank with me, and of course specifically on the Apple case. But that
being said, I also find there is a lot of interest in general to work with us, also within the framework of the OECD to prevent base erosion, and
profit shifting, and to enable fair competition also when it comes to taxation issues.
QUEST: The U.S. Treasury Secretary points out to you this is going to have a very damaging effect on transatlantic relations and could impact
transatlantic business. Well I know that was not your intention, but that could well be the effect.
VESTAGER: You see the thing is that the reasons to invest in Europe, they're piling up. This is a $500 million potential customer market. Very
high quality R&D and in some member states a very attractive tax code as a general measure. So to invest in Europe is a good idea even if you cannot
have selected benefits being handed out to you as we have found it to be the case in this particular situation.
QUEST: It will also cost the U.S. government, or the U.S. Treasury many hundreds of millions if this was spread out further with more companies.
Because of course they will take tax credits against their U.S. tax liability for tax they've paid, some would say, erroneously within the EU.
VESTAGER: Well, we find that it is a completely honest thing to tax profits where profits are being generated. And here we take the words of
Apple, where they say, well we generated these profits in Europe. We booked them in Ireland. And I think it goes back decades, the fact that
you get a tax credit for taxes being paid. Not a question of the sum, but actually when you pay taxes and you repatriate and not being taxed back
here in the States, or you get a tax credit.
QUEST: Are you looking at other countries. Are there real investigations at the moment into other U.S. companies tax practices in Europe?
VESTAGER: Yes, you may know that already a long time ago, we opened an investigation with McDonald's and with Amazon. We do these investigations,
obviously with an open mind. Because there is no sort of informal decision being taken. We have to prove our cases with the facts of the case. We
have been looking into a sample of 1,000 tax rulings, and the very good news is that we find that a number of those tax rulings, actually the
majority is that they were very well done. No concerned being raised. No more questions to be asked. So know we don't have a list of things that we
are just about to do, but of course, I cannot preclude that we will never, ever do something with another company.
QUEST: That is the commissioner. We'll be right back in a moment with some "MAKE, CREATE, INNOVATE" for you to ponder as we continue.
[16:50:00] (COMMERCIAL BREAK)
QUEST: Breaking news to bring you on CNN. The Tulsa police officer who fatally shot Terence Crutcher has been charged with manslaughter in the
first degree. That is according to the district attorney, officials and the family of the victim have put forward different accounts of what
happened before he was shot.
As we continue tonight, Japan's markets were closed today for autumnal equinox holidays, beginning of autumn. The season is not only changing in
the male dominated country, woman-omics is a rising force, CNN's Will Ripley speaks to Renho Murata, we speak to a Japanese politician who is
breaking the country's gender barriers.
WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: The new ahead of Japan's main opposition party does not hide her main ambition. Do you think you
will be Japan's first female prime minister?
RENHO MURATA, DEMOCRATIC PARTY LEADER, JAPAN: Yes.
RIPLEY: Yes. No translation need. The first female leader of the Democratic Party, Renho Murata's path to prime minister will not be easy.
Her party's popularity is about 10 percent. The ruling party has a super majority plus women are vastly underrepresented in Japanese politics, but
Renho who goes by her first name only doesn't focus on gender.
MURATA, (through translator): I never worried about being a woman in politics.
RIPLEY: I never worried about being a woman in politics, she says. I think any politician man or woman is expected to produce results. A 48-
year old former model, mom of twins, and lawmaker for 12 years is facing controversy early on.
Just after the election Renho revealed she still has dual Taiwanese citizenship. Highly controversial in homogenous Japan.
What do you think will be your biggest challenge? Is it being half Taiwanese? Is it being a woman? Is it being the opposition party leader?
MURATA, (through translator): I think they're all challenges for me.
RIPLEY: She faces potential competition from two other women who attained high office this summer. Japan's second female defense minister, Tomomi
Inada, and Tokyo's first female governor, Yuriko Koike.
NAKA KONDO, ECONOMIST INTELLIGENCE UNIT: They're all aiming to become prime ministers and this is conceivable now.
RIPLEY: Japanese voters are looking for change.
KONDO: That is what people expect. Something different from a female politician.
RIPLEY: Critics say Abe's woman-omics policies have failed to break up Japan's sexist boys' club culture where long hours and a daycare shortage
mean women often leave their careers to have children.
KONDO: It is still bound by traditional notions of women should be and where women should fit.
RIPLEY: Things are slowly changing. Japan's population shrinking, the large pool of highly educate nonworking women could fill the gaps in a
Is Japan ready for a female prime minister?
KONDO: I think so and --
[16:55:00] RIPLEY: Kondo believes these three women are moving closer to Japan's top jobs.
KONDO: They will have the power to set the agenda.
RIPLEY: And the power to pave the way for other women in Japan's patriarchal society. Will Ripley, CNN, Tokyo.
QUEST: You'll be wanting to know how the markets did and what other business news
there might have been, well, CNNmoney.com/quest where you can subscribe to our newsletter. And there is a Profitable Moment coming after the break.
Good evening to you.
QUEST: Tonight's Profitable Moment. On the show the Hungarian foreign minister gave a very spirited defense of his prime minister and his
country's policies on migration. Well, you would expect nothing less.
However, on the question of the referendum, that is going to be held October 2, whether or not to accept EU quotas, really their government is
between a rock and a hard place. Think about it. If Hungary's government wins the referendum, it puts it immediately at odds with the European
Commission and the other members of the European Union on taking quota.
And that of course will be a bust up of gigantic proportions. However, if they lose the
referendum and they have to take the quotas, well, of course, arguably having gone to a referendum on that issue this could be seen as a vote of
confidence in the government. Either way, the whole issue of migrants and refugees has become a sordid issue of abuse which is distasteful in the
And that of course is something that is not going to change in the next 48 hours. 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. We'll do it again tomorrow.