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U.K. Lays Out Post-Brexit Plan; Did Trump Avoid Paying Taxes for 18 Years; Facebook Launches Messenger Lite; New York Attorney General Orders Trump Foundation to Cease Fundraising; Kim Kardashian West Robbed at Gunpoint; China Cracks Down on TV Content. Aired 4-5p ET

Aired October 3, 2016 - 16:00:00   ET


[16:00:00] MAGGIE LAKE, CNN ANCHOR: Stocks open the fourth quarter with a loss. It's Monday, October 3th. Teresa May's government mapped out the

U.K.'s road out of the EU. Team Trump fights back on taxes, and Hillary Clinton rises in the polls. Facebook goes after its next billion users

with a new version of messenger. I'm Maggie Lake. This is QUEST MEANS BUSINESS.


ALEC BALDWIN, ROLE-PLAYING DONALD TRUMP: My microphone is broken. She broke it, with Obama. She and Obama stole my microphone. They took it to

Kenya. They took my microphone to Kenya and they broke it and now it's broken. Can you hear that? It's picking up somebody sniffling here. I

think it's her sniffs. She's been sniffing all night. Testing. Testing. China. China. Huge China.

MICHAEL CHE, ROLE-PLAYING LESTER HOLT: Secretary Clinton, what do you any about that?

KATE MCKINNON, ROLE PLAYING AS HILLARY CLINTON: I think I'm going to be president.


LAKE: We have another week until the next official presidential debate, but "Saturday Night Live," as you saw, had its own debate over the weekend.

We'll have more from Trump and Clinton's alter egos later this hour. And will also have the latest results from the CNN/ORC poll, which shows that

across both party lines voters want an answer to Trump's tax issue.

But for now, we turn to the United Kingdom where tonight there is finally a time table for Brexit. Chancellor of the exchequer, Philip Hammond, laid

out his economic plan for the U.K. in a post-EU era. He said despite strong growth and high employment, the country will pay an economic price

for leaving Europe. In a break from his predecessor, Hammond plans to ramp up the targeted infrastructure spending. There had been a plan in place to

and Britain's deficit by the year 2020. Hammond has abandon that in the face of Brexit. Investors reacted by sending the British pound down to

near record lows against the dollar.

The U.K. began running its maze out of Europe back in June when 52 percent of British voters said that they wanted to leave the EU. The first major

post-Brexit decision came after David Cameron resigned as Prime Minister and a new government was formed under Theresa May. Since then, the

question has been over when Theresa May would trigger the Brexit starting gun known as Article 50.

European leaders wanted it to happen immediately. Yesterday we learned the Prime Minister plans to take her time and will invoke Article 50 in March

of next year. After it's triggered, the EU/U.K. will start negotiating with Europe to define the future of their relationship. Whether the U.K.

will get access to the EU's single market, and if it will accept free movement across British borders. These discussions will take place over

two years and the United Kingdom will be officially out of the European Union by 2019. Max Foster is at the Conservative Party conference in

Birmingham. Max, we know now the timetable, but there are so many questions that remain on the table.

MAX FOSTER, CNN CORRESPONDENT: Yes, the party has always been split, has been on those pro-European and anti-European lines. Now that we're through

the Brexit, everyone does agree that Britain does need to leave the European Union. The public decided that in a very decisive referendum.

But now there's splits on how Britain leaves the European Union. Should it be a hard Brexit, where they just come out completely and renegotiate trade

deals where the countries involved. Or do they go for a soft Brexit, where they retain that core common market and perhaps compromise on things like

the freedom of movement of people. Well, Theresa May has made it very clear that she won't negotiate on immigration, for example. So there is

now a clear line on how she's going to move forward. And it does look more like that hard Brexit. Now, someone in her cabinet Chris Grayling was one

who campaigned very hard against her for Britain to leave the European Union during the referendum campaign. He is now part of her cabinet, and

he's very comfortable with the direction she is now taking.


CHARLES GRAYLING, UK SECRETARY OF STATE FOR TRANSPORT: Always remember that we are the European Union's biggest customer. We represent 16 percent

of their exports, and some of the key sectors on the continent, the German carmakers, the French farmers, were an absolutely essential markets. And

we have a 70 billion pound a year trade deficit with the European Union.

So in every respect it is in their interest to maintain a good sensible trading arrangement with us. So I am absolutely confidence that our

businesses, international businesses here will carry on working as normal within the European continent. The politics will be different, but there

is no reason for them to erect trade barriers when their businesses will suffer the most from those trade barriers.

FOSTER: But they dug their heals in, haven't they? Many key members of the European Community that you're going to have to negotiate with, they're

being very clear, no access to the single market, whilst rejecting free movement of people. How are you going to get past that?

[16:05:09] GRAYLING: Every nation in the world has access to a single market. It's the terms upon which that access is based. If we end up in a

tariff based environment, it is German carmakers, it is French farmers who will bear the brunt of those tariffs. And that's why I'm actually

confident on what we will end up with is a sensible free trade based agreement. One that works for both the United Kingdom and the member

states of the European Union. And it gives us all a sensible way forward to the future.

FOSTER: So it might start out as a discussion about tariffs, but ultimately there will be no tariffs in your view.

GRAYLING: I believed all along when we are their biggest customer, no sensible business who starts to raise barriers between themselves and their

biggest customer. We are 16 percent of their exports. We're a crucial market for key sectors in Germany and France and elsewhere. I'm completely

confident we will end up on a sensible basis for all this to carry on doing business together in the future.


FOSTER: And here at the party conference, Maggie, certainly a lot of bars arounds Teresa May's speech. A lot of people seem to agree with it, even

Lord Ashcroft in the last hour. He used to be a major party donor to the Conservative Party. He stopped donating to the party, because he's

concerned about its direction around Brexit. He now is going to start donating to the party once again because of what Theresa May said, just

today. So she is galvanizing support in the party. It seems, but obviously as you described before he came today, a very long way to go.

LAKE: Max, let's face it, this is circling the wagon and getting the best posturing they can as they had into negotiations. They're not going so say

they have a weak hand. That would defeat them before they even started, but there are big risks out there when it comes to trying to have access.

I mean we heard that one side painted well, but not everyone feels that comfortable, and not even people in the business community.

FOSTER: No, the business community is more concerned about anything. About the uncertainty, because they just don't know what the next few years

are going to hold, and particularly for foreign investors in the U.K. How can they invest in new factories, for example, when they don't know what

sort of policies will surround that factory in the future, and what axis that factory will have to the European market? So big questions there.

But the one fundamental discussions here is this red line that both Teresa May has drawn on whether or not she will allow the free movement of people.

She's saying absolutely not. The referendum showed that Britain won't support that. And what Brussels is saying, which absolutely a red line for

them as well. If Britain wants access to the European Union, they have to have that free movement of people. So both of them have dug their heels in

on that. It's really difficult to see how either of them can budge on that without being seen to compromise. So that's really the starting point for

these negotiations.

LAKE: There had been some discussions about whether it would be wiser to have negotiations. We have some really important elections coming up in

Europe. A lot of this is cloaked around politics and people's political futures on the line here. How is everyone feeling there about the timing?

Do they think it's too fast? And do they know, is that the government call or Is Parliament going to be more heavily involved in this?

FOSTER: Well that is interesting, there is a debate in Parliament among some people who don't want this hard brags it, about whether or not they

can block it in some way. And they're arguing that Parliament needs to approve Article 50, and when that's invoked. And there is a court case

actually coming up around that, and Theresa May is saying that absolutely she has the decision on that. She'll fight that in the courts as well. So

even before they can invoke Article 50, there's a massive argument in this country about whether or not she has the power to do it. Which could

undermine everything what she said yesterday. But she certainly going to fight it.

LAKE: Yes, and taking a strong position right from the start. Very interesting. Max, thank you so much for that. It's going to be

fascinating to watch the interparty relations going on. It is just 100 days from the referendum. Richard decided it was time to take the QUEST

MEANS BUSINESS camper van back on the streets of London. With Freddy Brexit fired up and humming along smoothly, Richard met with some British

manufacturers to ask how they're navigating these uncharted waters.


QUEST: A 100 days ago and the forecasts were that Britain was about to fall apart. Since then, like my camper van Freddy Brexit, Britain kept

going. Big Ben still looms large over Westminster. The lions sit proud in Trafalgar Square. And Churchill guards Parliament just as he did in 1973

when Britain entered the EU. But the Best of Britannia Exhibition this weekend, quality British goods were on display. Some of the craftsman were

gleeful at the post-Brexit boom.

[16:10:08] DAVID BRAILSFORD, DIR. GARRICK LUXURY WATCHMAKERS: For us it's been brilliant. We know it is literally 2 to 3 days after Brexit was an

answer that the price of the pound went down, basically we had orders coming through. The phone was ringing off of the hook. Virtually

everything we do is exports. All the foreign collectors tend to want to buy our watches.

QUEST: the exhibition was showcasing what Britain does best. Like these woolens from Russ Barr

ROSS BARR, FOUNDER AND DIRECTOR, ROSS BARR: I just talk to New York last night.

QUEST: His business has been clobbered since the vote, but it's only been 100 days.

BARR: It completely and aftermath. I had to stock this, my first one, it's international pockets, within Berlin a man might be seeking. And the

week after Brexit they canceled their order, because they were not sure that they would be able to market a British brand in Germany.

QUEST: It has a certain charm to it, doesn't it? Living with that uncertainty for the next two years is something these companies large and

small are going to have to get on with. June sat upon was a strong remainer.

JUNE SARPONG, FOUNDER, LDNY, BEST OF BRITANNIA AMBASSADOR: Beautiful, you have a good head of hair by the way.

QUEST: I mean, it's still there. That's what you really mean.

SARPONG: I think at the end of the day I still don't believe it was the right decision.

QUEST: But get over it.

SARPONG: Easier said than done. But we've got to make the most of it. I'm worried, because I think at the end of the day there is no guarantee

that we're going to remain in the single market. And if we don't, what does that mean?

QUEST: The British don't need much of an excuse to be eccentric. At the classic car booth sale, where British and European beauties were on

display, there was optimism.

WAYNE HERRINGWAY, FASHION DESIGNER: Totally, yes we're human being. We're British. Above that, we're a youthful nation.

QUEST: The first 100 days are being best described as a phony war. Britain and Europe feeling each other out. The next six months is when it

starts to get really interesting and the Britons Brexit battle truly gets under way. Richard Quest, CNN, London.


Lord Karan Bilimoria says those negotiating for Brexit don't have a clue what their objective is. The founder and chairman of Cobra Beer joins me

now from London. Thanks so much for being with us. That was certainly, I know your feeling, are you gaining any more confidence that there is a

clear direction coming from the current government, based on what we're hearing coming out of the conference?

KARAN BILIMORIA, FOUNDER AND CHAIRMAN, COBRA BEER: All I can hear is a Prime Minister sounding tough, Brexit means Brexit. And now setting a

deadline for the end of March saying, whatever happens, we're going to press the button for Article 50 then. And saying we have a clear mandate

from the people. What is so clear about a 52-38. This was not a 70 - 30 majority. This was not a 60 - 40. It's 50 to 48. There are almost half

of the people who voted to remain, and of the 52 percent who voted to leave the European Union, they voted for very different reasons. Some voted

because of the movement of people. Some voted because of the money we're contributing to the European Union. No one put in context that what we

give to the European Union, eight billion pounds' net, is 1 percent of our governments public expenditure per year. Others voted because they wanted

no more European laws having any control over us at all. And then others who were misled completely by a battle bus that went around with 350

million pounds going into the EU every week. We'll donate that money to the MHS, voted misleadingly and conned to save the MHS. So there is no

clear mandate whatsoever from the people.

LAKE: But surely you know as a businessman, you can't go to the negotiating table and say, oh, we really feel divided about this, we don't

we to do. You have to go with a strong hand. Is a hard Brexit a way to approach it?

BILIMORIA: Well, absolutely not. For a start, Parliament should have a say when pressing the button for Article 50. Isn't it ironic that every

time this country wanted to go to war, the Prime Minister of this country has the prerogative to go war without consulting Parliament. And yet every

single time, whether it's Iraq, whether it's the intervention in Syria, the Prime Minister has gone to Parliament. And here we have the most important

decision in for decades and the Prime Minister says, I don't need to go to Parliament, I will just go straight and press that button when I think it's

the right time, which is the 31st if March. It is absolutely atrocious and Parliament will not stand for that. We've got a court case that is coming

up now, whichever side loses will appeal. It will not be until December whether we know whether Parliament will have a say of when Article 50

should be pressed. And then that will decide the timing.

[16:15:02] LAKE: I'm curious on your thoughts about this. She is saying full control over immigration, sovereignty must reign. For many people --

and many people voted in the referendum -- that is going to mean severely limiting the number of people coming into the U.K. From an economic point

of view, from a business point of view, is that realistic?

BILIMORIA: Well with this Prime Minister you've got to remember was Home Secretary for six years. And all of the time she was Home Secretary, she

very clearly sent out the signals that quite frankly, she was anti- immigration and anti-international students. She made a statement before the last elections, she wanted international students to leave the day that

they graduated. So it is no surprise she is saying what she saying. But is that being in the best interest of our economy. What we must accept is

that every part of our economy, whether it's the city of London, which is the largest recipient of inward investment in this country. And which is

still the number 1 Financial center in the world. Whether it's the hospitality industry, whether it's the agricultural sector, whether it's

our academics, whether it's international students, whether it's the NHS in the care sector is reliant hugely on work force from the European Union.

We need that to be able to be the fifth large economy in the world. We can't suddenly put a stop to that. So to think that were just going to

just stop all EU immigration, will A, be impractical, and B, will be harmful to our economy. What we need to get on top of is control of our

borders. Tony Blair removed our exit checks from our borders in 1998. From a security point of view, and to be on top of movement of people, we

need to reintroduce exit checks. That will give the people much more confidence on control of our borders. But to stop all immigration from the

European Union would be political madness and economic madness.

Certainly the beginning of some very difficult discussions ahead. Lord Bilimoria, please come back and join us again. Thank you, so much.

The weak pound boosted the London stock market. The FTSE rose to its highest level in 16 months. Other major European markets also had a

positive day. The German market was closed for a national holiday.

Donald Trump appears to be on a tax holiday, an 18-year holiday, according to the "New York Times." We'll have the latest on that. Plus, will let

you hear what the pseudo Donald and Hillary Clinton have to say on the subject when we come back.



KATE MCKINNON, ROLE PLAYING AS HILLARY CLINTON: He hasn't released his tax returns, which means he's either or not that rich --


MCKINNON: -- not that charitable.


MCKINNON: Or has never paid taxes in his life

BALDWIN: Warmer.


Alec Baldwin playing Donald Trump or Donald Trump himself, neither Trump is actually denying the story. The billionaire may not have paid income taxes

for years, possibly even decades. Instead Trump's team says, this is just smart business practice. Here's Rudy Giuliani speaking to CNN's Jake


RUDY GIULIANI, FORMER NEW YORK CITY MAYOR: The man's a genius. He knows how to operate the tax code for the benefit of the people he is serving.


[16:20:00] LAKE: Documents mailed to and then published by the "New York Times," showed that Donald Trump posted an almost billion-dollar loss back

in 1995. By claiming that loss, Trump would be able to go the next 18 years without paying federal income tax. Not because Trump has done

anything illegal. This deduction is part of the legal tax frame work here in the United States. And the issue over taxes may start to be a reason of

concern for the Trump campaign. In the latest CNN/ORC poll numbers out just as hour, Clinton has gained four points in the national polls since

September, while Trump has lost three points in this four-way horse race. We are seeing that Democrats are starting to rally around Hillary Clinton's


And when it comes to the issue of tax, more than seven in ten voters want Trump to release his taxes and our polls show that nearly one-half of Trump

voters believe he should make his taxes public. And nearly 6 in 10 voters think that he is hiding something by not releasing them.

Joining me now from Washington is Maria Cardona, a CNN political commentator and Democratic strategist and Hillary Clinton supporter. And

here with me here in New York is Boris Epshteyn, a senior adviser on the Trump campaign. Thanks to both of you for being with us. Giuliani is

saying, listen, he is a smart businessman, he's a genius and being able to work the tax code to his advantage. If that is true, and that's a

position, why didn't Donald Trump just own this story from the beginning and release them. And will he release the information now?

BORIS EPSHTEYN, SENIOR ADVISOR, TRUMP CAMPAIGN: He has been very clear his taxes are under audit. And he's been advised by counsel and by accountants

not to release his tax returns.

LAKE: Many others have said that it's perfectly, including the IRS, that he can release them.

EPSHTEYN: Well sitting at this very table on CNN, Robert Kovacev, who is the senior partner of Stepto and Johnson, on taxes said that he would never

advise his client to release their taxes or any part of them under audit. That is standard practice. And as an attorney I can tell you that standard

practice. You just don't do that. That is one. Two on the story, the "New York Times" is claiming to get these alleged documents. Nobody's been

able to authenticate them except for an octogenarian retired accountant in Florida.

LAKE: He did, though. He actually was the accountant at the time who did them.

EPSHTEYN: The "New York Times" is claiming that he authenticated them, but also not -- and I saw Ms. Craig on TV -- they are not verifying whether

they know where the documents came from. All they have is one piece of paper from three different states. That's three pieces of paper on which

they're making the statements and accusations. So that's another part of it. Two, if these are authentic, and they are authentic, the "New York

Times" is breaking federal law by publishing these documents. Under the 26 USC they are breaking federal law. You're not allowed to publish any tax

documents without consent of the person whose tax documents they are.

LAKE: The "New York Times", obviously feels differently. May be illegal to release them but the "New York Times" feels that they have legal basis

to release them.

EPSHTEYN: They don't. A month ago, an editor from the "New York Times," Dean Baquet, I believe, said that he's willing to go to jail in order to do

this. So they were willing to break the law. That's how pathetic and really unhinged the "New York Times" is to do this. So that's all part of

the point. Another part of the point is net operating loss is a long time part of the tax code. Hillary Clinton used it in 2015. The New York Times

itself has used it in the last two years.

LAKE: Most of the time used by in much smaller amount. Really aimed at small businesses.

EPSHTEYN: The "New York Times" is not a small business.

LAKE: Let me put that aside for a moment. I want to ask you, Maria. This is, we were talking about an October surprise, clearly the Hillary campaign

is jumping on this, but preparing themselves for what may be the release of very uncomfortable information about Hillary Clinton as well. We're

expecting more leaks to come out from WikiLeaks. What is the Clinton campaign doing to try to increase her negatives on transparency?

MARIA CARDONA, DEMOCRATIC STRATEGIST: Well, I don't think there is any comparison on the issue of transparency between what Hillary Clinton has

made public, and let every voter in America see, versus what Trump has done. Which is zero. Hillary Clinton has released 40 years' worth of her

tax returns. She has released her health records. She released thousands and thousands of her emails for the world to see.

Donald Trump has done absolutely nothing to make the American voter see that he is for transparency and that the rules actually do apply to him.

The "New York Times" story on taxes is absolutely a bomb shell. I know that my friends who are on the Trump team are tying themselves up in knots

trying to defend it, trying to legitimatize it, trying to push it aside and deflect and try to blame Hillary Clinton. The fact of the matter is, if

you are a working person or a middle class family who pays their taxes year in and year out, and you look and see how much Donald Trump took advantage

of the tax code, to avoid paying taxes for more than 20 years, and calling himself a billionaire.

[16:25:06] And criticizing the military, and criticizing our infrastructure, when in fact he has done nothing to contribute to the

bettering of those two. I think you see the American voter will see this as somebody who is not only temperamentally unfit to serve as president of

the United States, but somebody who does not deserve even to be looked at in that light.

LAKE: Maria, I'm going to let you catch your breath. Boris, is this going to present a problem for Donald Trump as he has tried to reach out to

middle class voters who clearly feel disconnected from the political establishment in those very important swing states?

EPSHTEYN: Absolutely not. Those voters are looking for a leader that knows how to negotiate, that knows how to work within the system, and they

look at Donald Trump and they're saying, well, when we do our taxes every year, via H&R Block, whatever it is, we pay what the tax code maintains,

what the tax code requires. That's exactly what Donald Trump did.

There is a lot of news out there and going in the streets and they're asking every day Americans and they're saying what do you think about this?

You know what they're saying? This is the kind of person we want negotiating with China. The kind of person we want negotiating with


And on transparency, Maria's right, there is no equivalency. Hillary Clinton lied to Congress, the FBI, and to the American people about her

emails. She said she turned over all her emails, more and more coming out, 17,500 emails, in fact, came out that she said she turned over. That was a

lie. Hillary Clinton is somebody who shouldn't be running for president. She somebody who should be behind bars, because she broke the law and she

put this country in danger by establishing that private server.

LAKE: Maria, I'm going to give you the last word. We have another debate coming up. Hillary Clinton is still very close despite the fact that

Donald Trump had by all accounts what is a very difficult week. What does she need to do to close the gap?

CARDONA: I think she needs to continue to focus on her positive message of lifting up middle-class families, working-class families. On how she's

going to make sure that they are able to make ends meet. But I think you're also going to going to see Tim Kaine make the huge contrast between

somebody who has proven that they, not only have broken the law, look at what the Trump foundation has done This is the foundation that has actually

been slapped by penalties by the IRS for an illegal payment to the Florida Attorney General. And they are now under investigation by the New York

Attorney General, for self-dealing. And they came out today to say that the Trump Foundation can no longer raise money in New York. You want to

look at thing that's have been done, that have been illegal and against the law Trump and the Trump organization and the Trump Foundation has troves of


LAKE: I'm going to leave it there, Boris. I know you want to jump in. You know this confrontation will continue on CNN, but it can't continue on

this show because we have a lot of news. Thank you both for joining us. We will continue to cover this in the coming hours, thank you both.

Now the U.S. market started the fourth quarter in the red. The Dow lost 54 points even though it recovered from some heavier losses. The NASDAQ and

the S&P also closed down around a quarter of a percent.

Now in this election polls aren't the only way to predict November's outcome, and Heather Long will tell me the stock market and the economy may

also give strong clues as to who will win. At the start of each week CNNMoney will check on what the market metrics are telling us. Heather, so

what are we up to today? And how is it that the stock market can be an indicator of who is doing well?

HEATHER LONG, CNNMONEY SENIOR WRITER: Sure, it's a little bit different than the polls, what the stock market is telling us. So the U.S. stock

market has actually been really reliable predictor for who will win the White House. And right now it's telling us Donald Trump. That's a bit of

a difference than what you were just talking about.

LAKE: Absolutely and in the stock market, what is it that they're grabbing on to, do you think? What is this particular connection with stocks?

LONG: The first thing you have to think is the folks that develop this metric are at S&P That. And they look at how the stock market performs

from August 1 to October 31. So that critical three-month period leading up to the election. If stocks rise during that period, it favors Hillary

Clinton. If they fall it favors Donald Trump. So if they're more bullish, they probably want to keep the same party in the White House, they would

favor Clinton. Right now the S&P 500 is just a little bit below where it was on August 1. So that's why it's tilting a little bit towards Trump.

But we saw a little bit of a rebound last week. So that could slip.

LAKE: All right, so were going to check next week to see if there is a change. And of course, a lot of times people will say things to pollsters,

but where they put their money is more telling. Gas prices, what is that telling us?

LONG: Sure, so we have this famous line in American politics, "It's the economy, stupid." And one of the best gauges for how people feel about

economics is gas prices. And right now those are really pointing strongly toward Hillary Clinton.

LAKE: Because they've been low, right?

LONG: Very low.

LAKE: We're feeling good about it. LONG: They are very low. They would need to go above three dollars a

gallon and they're not anywhere near that

LAKE: Right. There are a lot of forces that have nothing to do with the election, but if she's going to get credit that that's fine. This is

something that is not domestic which is interesting, is garnered a lot of attention last week, and that's the Mexican peso.

[16:30:02] LONG: That's right. What does Mexico have to do with the U.S. election?

LAKE: A lot in this election.

LONG: Trump talks all of the time about Mexico, building that wall. He wants to renegotiating trade with Mexico. It's funny every time Trump

looks like he's doing well in the polls, like the end of August, the Mexican peso starts falling. And every time Trump doesn't look so good,

like what happened after the last debate and certainly with this latest tax revelation, the Mexican peso rises. So right now the Mexican peso is up,

and that is a good sign for Hillary Clinton.

LAKE: All right and we've got it on our screen, and were going to follow these metrics along. So it'll be a good gauge to see if they're reflecting

on what we're hearing in the polls as well. Especially if money is involved. Heather, we'll see you next week, but I think you so much.

Now it is the robbery that has caused a social media storm. We know you heard about it, Paris police are looking for five gunmen after Kim

Kardashian-West was robbed in a private apartment in Paris.


LAKE: Hello, I'm Maggie Lake. There's more QUEST MEANS BUSINESS in a moment. When will take you live to Paris where a shaken Kim Kardashian has

been robbed of millions of dollars in jewels. Police are hunting for the gunmen. And I'm talking to the CEO of GoPro, Nick Woodman tells me why

demand for the company's products remain strong despite the reports suggesting otherwise. First, the headlines this hour.

Donald Trump's foundation has been told to immediately stop raising money in New York State. The New York Attorney General said the foundation is

violating state law for raising money without a permit. It has been handed in order to cease and desist soliciting donations. A spokeswoman from the

Trump Foundation said, "While we remain very concerned about the political motives behind Schneiderman's investigation, the Trump Foundation,

nevertheless intends to cooperate fully with the investigation. Because this is an ongoing legal matter, the Trump foundation will not comment

further at this time."

Trump's popularity has taken a hit in a new CNN/ORC poll. His main rival, the Democratic nominee, Hillary Clinton, has regained the advantage in the

race for the White House. She is now five points ahead of Trump nationwide.

Colombian voters have rejected a historic peace agreement that would have ended 52 years of fighting between the government and FARC rebels. The

result came as a shock as polls had shown support for the deal. Critics say the deal doesn't punish the rebels for what they did. The Colombian

president says a cease fire is still in place.

We are hours away from hurricane Matthew likely making landfall in Haiti where it could dump as much as 100 cm of rain. This category four storm

could prove disastrous there. Haiti's infrastructure still hasn't recovered from the 2010 earthquake.

[16:35:02] Hungarians voted Sunday to reject the European Union refugee resettlement plan. Voter turnout was not high enough to make the vote

valid. The vice president of Hungary's ruling party said more than 90 percent of those who did vote supported the prime minister's no position.

Under the agreement reached with the EU last year Hungry would have to accept almost 1300 refugees.

Reality TV star Kim Kardashian-West left France after being robbed and held at gunpoint at a private apartment in Paris. More than $10 million worth

of jewelry and phones were stolen according to the prosecutor's office. A spokesperson for Kardashian-West said she is badly shaken but physically

unharmed. Kardashian-West's husband abruptly left a music festival in New York when he heard the news.

Kanye West told fans mid-song that he had to stop the performance.


KANYE WEST, RECORDING ARTIST: I'm sorry family emergency.


LAKE: Melissa Bell is in Paris now and joins us. Obviously this raising grave concern about how this could have happened?

MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT: Hugely embarrassing for French security services. That Kim Kardashian would have been staying here

in the heart of one of the fanciest districts in central Paris and could have been robbed at gunpoint. It seems absolutely extraordinary that there

was such a lapse in security should have been allowed to happen.

Clearly French authorities said their utmost priority now is to make sure they catch these five gunmen and put an end to this. It is a huge

embarrassment also at time when Paris was really trying to bring tourists back. The vanished over the course of the last year and half, the figures

are startling, just in the first half of 2016 a million fewer tourists visited Paris than they have the previous year.

A series of terror attacks we had here in the French capital, and a number of bad headlines. I'm also thinking of demonstrations and riots on the

edges of the demonstrations. Paris is struggling to get people to come visit in the sorts of numbers they used to see. Even as they were mounting

initiatives to lure tourists back, this happened.

Reminding people that Paris has a serious security issue. Even someone like Kim Kardashian can have something like this happen to her. It will be

hard for Paris to convince people it's OK for them to come back.

LAKE: Melissa, how confident do they feel that they will be able to crack this case? There is a lot of suspicion that this might have been an inside

job given some of the details surrounding it and the questions of where were her body guards and

how did they know she was there?

BELL: I think that is one of the big questions this evening. Is whether it might have been -- there might have been some inside involvement. In

any case, what we can say for certain is these were remarkably well organized people. This was not an opportunistic robbery. They came to

this location half past 2:00 in the morning, overpowered the security man on duty that night. Why there was only one is one of the principal


Managed to get upstairs, managed to hold her at gunpoint, lock her in her bathroom, and it seems extraordinary it should have been allowed to happen.

The investigators be having to answer that and they will have to try and find the people who clearly targeted Kim Kardashian. They came here

looking for her specifically at a time of night when they knew exactly what they were doing.

They got in and out with the jewels that presumably they had come looking for. So it's a highly organized group and I think the French security

forces will be worried at this stage that it will be very hard for them to track them down.

LAKE: And very sophisticated indeed, it is not going to be easy to flip those kind of jewels with so many people watching in the world. So one has

to think that they did think it through very carefully. Melissa, thank you so much. We'll continue to track that story, of course.

One place you may not see a lot of Kim Kardashian on television is China. That's because Beijing has recently issued new censorship guidelines

forcing shows to block content that promotes so-called western life styles. Matt Rivers reports.


MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: When the popular Chinese drama, "The Saga of Wu Zetien" was abruptly pulled from the air in January

of last year, the government said it was for technical reasons. But when the show was broadcast again, millions of fans immediately noticed

something a bit different, maybe you did, too.

The ever present cleavage of female characters was gone fallen victims to digital zooms and close ups. Such is life in the world of Chinese media

where strict government censorship controls many things beyond just cleavage.

[16:40:02] New regulations say shows that promote western lifestyles are no good. "Foreign inspired shows are also a problem."

Media reports say Chinese TV stations were warned to put South Korean projects on hold after a U.S. backed missile defense system was announced

there. A move that Beijing doesn't like. No shows featuring the children of celebrities are allowed either. This show, "Dad Where Are We Going?"

did that. Now it is canceled plus any displays of homosexuality are forbidden, an internet show about a relationship between two teenage boys

was quickly pulled in February despite getting 10 million views in just one day after its release.

The following things are also banned -- joking about Chinese traditions, classic material, sensationalizing private affairs, relationships or family

disputes, or putting stars, internet celebrities, or billionaires on a pedestal. You also can't show anyone drinking a beer, although to be fair,

I can't do that on CNN either, you can't show anyone lighting up a cigarette, or finally you can't show anyone traveling through time.

Yes, even time travel can't escape Chinese censors. Some of these restrictions might seem odd, and you could spend all day speculating why

they're in place, but don't expect an official explanation of the logic behind them. The government here rarely shares its motivations. For now,

no western influence, no time travel, no cleavage, and no stated reason why. Matt Rivers, CNN, Beijing.


LAKE: Message received. Facebook is pushing into emerging markets with a trimmed version of its messaging app, details up next.


LAKE: For Facebook's one billion users, it's not enough. The company has launched a slimmed down version of its messaging app designed for users

with slower internet. Messenger Lite has rolled out in Venezuela, Tunisia, Kenya, Sri Lanka and Malaysia.

More countries will join later. With me now is Lance Ulanoff, he is the chief correspondent and editor at large of the tech website Mashable.

Lance it is so good to see you in the studio, so we know they have had the developing world in their sights for some kind, is this important?

LANCE ULANOFF, CHIEF CORRESPONDENT AND EDITOR-AT-LARGE, TECH WEBSITE MASHABLE: It is because it is on an android. And android is the most

widely used mobile platform in the world. And it is also on a lot of really affordable phones, and these phones are usually often not on mobile

broadband or the lowest end of mobile broadband, so giving these people the ability to communicate with a app that doesn't stress out these older

phones and the older technology is pretty important.

LAKE: How big could this be for Facebook? We know there is a sense they have been plateauing.

[16:45:00] Do you think this will allow them to build on that user base? Is it just early foray?

ULANOFF: There are four billion people still not on the internet. There is a wide open market for Facebook to expand. And where they really

plateaued is in the U.S. Mobile broad band is ubiquitous, smart phones are essentially ubiquitous, we all have it. But in these other countries, in

these other places it is simply not the case.

LAKE: The internet is slow now but it isn't always going to stay that way.


LAKE: For where it is, sort of slowing users, they are obviously trying to get us to spend more and more time in that world. They also today

announced they're doing a friendlier version of Craigslist or marketplace of sorts. Is that interesting or is that just noise?

ULANOFF: It is very interesting but it's also a little strange. So this marketplace has been around for a while, but they have a better position.

They're pushing it more and they have a spot to find it more easily. It's a basically way to sell your garbage, your stuff, right?

LAKE: One man's garbage is another's treasure.

ULANOFF: So true but they're not even enabling transactions. It's like hit the button and then you get to list your stuff, and what happens is --

and this is where it is important, sort of uses localization. It will show you deals in your neighborhood. Stuff people are selling that is within

your general vicinity, after that it is totally up to you to basically communicate with them and decide how is this transaction going to happen?

LAKE: We do that on groups I feel like because I've got an active one in my neighborhood, so I'm not sure -- have people gotten over the fact that

there was some overstating of video usage? Investors were not happy with that a couple weeks ago, have we recovered that from?

ULANOFF: I would say so. It a very confusing thing. There are no standards in that area. How people measure the views and engagement. It

was all about nothing that is three seconds or less would be counted. Which you think would be a good thing but it turned out it was actually not

counting then the full number of people that might have seen the ads.

So it was a fairly big problem for people who measure ad engagement. They measure it by overall size of audience versus the number of people engaged.

Fairly big deal, seems like they have cleared up, I've heard next nothing about it. Facebook is what I call a social media juggernaut, nothing is

stopping it. It is a real power house in this space compared to something like twitter which is struggling and which is basically on the block.

LAKE: I feel myself getting sucked into the Facebook world no matter what I do. Thank you so much for coming by. Great to see you.

Now from snowboarding to surfing GoPro cameras are the mainstay of adventure seekers. Now there is a new one after a two year wait since its

predecessor Hero 5 has hit the shelves in the U.S. this Monday. The main new feature is its ability to upload photos automatically to GoPro's own

cloud storage. Hero 5 is available in the U.S. now but it will reveal its full potential when combined with the GoPro's new drone.

It is flying into crowded skies ruled by Chinese manufacturer DJI and to a lesser extent the French Parrot and the American 3D Robotics. GoPro will

try to find it's vanishing point on October 23rd when its drone Karma launches. It is not the only newcomer though, Chinese Xiaomi recently

released a drone that beat DJI on price. There is big money at stake, no doubt about it.

PWC forecasts the market will be worth nearly $130 billion by the end of the decade.

GoPro CEO Nick Woodman says demand for the company's products remain strong. I spoke with him earlier about GoPro's new camera and upcoming

drone. I asked him why people who have the Hero 4 should upgrade.


NICK WOODMAN, CEO, GOPRO: You will want to get new Hero 5 black or Hero 5 session camera because we have finally made it easy for you to not only

capture incredible life experiences, but now you can automatically off load those experiences to the cloud, to a GoPro plus cloud account. So that you

can later access that footage and make an edit using your phone and GoPro's quick app. So since Hero 5 cameras now off load their content to the cloud

when they're charging, it is finally easy to make use of all of that footage that you captured and share incredible stories.

LAKE: And the viral hits that we want to try to recreate or create ourselves. How much success are you having in terms of growing the

customer base. We know there are enthusiasts out there. We watch the all their content and we love it, but do you feel like you getting more of the

everyday user that frankly may already be getting a lot of the capabilities they need from their smart phone, we keep seeing smart phone cameras get


WOODMAN: Demand for GoPro has never been stronger. Before the launch of Hero 5, on store shelves and available online today, even before the launch

of the fantastic new experience from GoPro, sales of Hero 4, a two-year-old product from GoPro, sell at our retail partner stores was - never better.

[16:50:12] So there is a myth that somehow demand for a GoPro has been waning and that just simply is not true. Consumers have been buying them

at higher rates than ever before. And now that we launched Hero 5, GoPro plus and soon Karma on October 23, we've given customers more reason than

ever to get excited about GoPro this holiday season. So we expect interest to grow even more.

LAKE: And of course, we're going into the holiday season, so you have these new products, the editing, and also a drone. Let's not forget about

that, the eagerly awaited drone out as well. What do you think the market is for drones? Where are we on this arc?

WOODMAN: Well one of the things we're most excited about Karma is that it is much more than a drone. Yes, Karma does include for $799, Karma

includes a flying drone. But the stabilizer can come out of the drone and attach to a handheld grip so you can capture, incredibly smooth

professional quality stabilized video. Not only in the air but as you chase your kids around at the beach, the park, or on the mountain.

And it all fits into the backpack you wear during any activity. So in the GoPro sense

Karma really goes with you, and I think this is a natural important evolution, and extension of the product line that helps our customers

capture their lives in new ways and become even more creative story tellers. So while we're excited about the drone market, we're more excited

about the overall story telling markets and Karma helps people share that much more incredible stories.


LAKE: As we told you earlier, GoPro is not the only company trying to get drones off of the ground, Xiaomi is doing the same thing and smart phones

to take on Apple in the U.S. you will hear from the man leading the company's charge into the U.S. market, that is tomorrow on QUEST MEANS


In a world where we feel reliant on the latest technology, like smart phones and navigation systems, the time piece titan Jean Claude Biver says

a simple watch still has important role to play. He joins me after the break. First a highlight from make, create, innovate.


LAKE: There are few bigger names in the watch industry than Jean Claude Biver, in the luxury watch circles, he is often known just by his initials

JCB. And as the president of LVMH's watch division, Biver is at the helm of Tag Heuer, Hublot and Zenith. Zenith has partnered with Range Rover to

create a new watch inspired by the vehicle.

Jean-Claude joins me now. Thank you so much. Fantastic to see you. The luxury market, a lot of concern about where we are, the slowdown in China,

from your vantage point, how are things looking and is the watch a little bit more resilient, the watch business?

[16:55:05] JEAN CLAUDE BIVER, PRESIDENT, LVMH WATCH DIVISION: No, I think we are in a consolidation. We are not in a correction. And when you in a

consolidation, it usually is welcome. It's not very comfortable, but somehow in the longer term it is welcome. We are in consolidation mainly

in China. We have some problems in the world with the insecurity, the U.S. elections, the insecurity in Europe, the terrorism.

So all of this is affecting us a little bit. But on the longer term, the fundamentals are good and I believe already now we can feel we are


LAKE: You're improving. There is also a sort of existential question about what people want in a watch. There has been so much competition as

we know from technology, from smart watches, and in fact Apple has climbed into, I think the number two when it comes to luxury watches, which is

extraordinary. How do you grapple with that? What does it mean?

BIVER: It means first that what Apple has done is fantastic. Just unbelievable to become the number two after such a short period. It means

also that there is a huge potential because before Apple was not there, so the potential is big.

But it means also that there is eventually a threat for the Swiss watch industry in a certain price category. If you take the connected watch from

us, or connected watch from Apple, or whatever. What this watch will become one day obsolete. If you take a watch from the 19th century, 20th

century, or a mechanical watch of today, in 100 years it will still work. And that is a huge difference between on one side you have eternity which

is art, art is eternal. And on the other side you have technology. And technology is becoming obsolete --

LAKE: But does that limit your market?

BIVER: It limits the price you can sell technology. Technological watch at $10,000, nobody would buy. Why? Because in three years what do you do

with the watch? You have lost $10,000.

On a $10,000 classical watch, maybe in three years it's worth $12,000 and it will still work. That is the huge difference. Today we have two

markets which we didn't have before. We have the technology market, and we have the watch-making art market.

LAKE: And that is where you still dominate.

BIVER: That is where we are still.

LAKE: Coming out with new products every day, we look forward to them. Thank you very much for being with us. That is QUEST MEANS BUSINESS for

today, the news continues here on CNN.