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QUEST MEANS BUSINESS
Trump And Obama Meeting At The White House; China-U.S. Trading; Cubs Wins The World Series. Aired 9-10a ET
Aired November 10, 2016 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[00:00:03] RICHARD QUEST, CNN ANCHOR: Good morning, it is Thursday. It is the 10th of November. And this morning we are live at the heart of the
world's financial capital, New York City and the heart of the heart, we're at the New York Stock Exchange this morning.
Coming up over the course of the next hour, volatility on the streets but stability in the markets, strong gains on global markets on the back of
Donald Trump's victory. Trading begins in just 30 minutes from now. In China, the yuan hits a six-year low as Donald Trump is promising to tear up
trades deals and (inaudible) backup, the chairman and chief exec of Cathay airways who has made some strong statements about Donald Trump. He will be
with us during the course of the program. And Jack Ma of Alibaba, we'll also hear his view on what's going to be happening.
Put it all together from populism to pragmatism, I'm Richard Quest live at the New York Stock Exchange, well, of course I mean business.
And a very good morning to you and warm welcome to the New York Stock Exchange. Over the course of the next 60 minutes, we are going to bring
you everything that's happening in the financial world that you need to know on a day when Donald Trump, the President-elect will pay his first
visit to the White House at the invitation of President Obama as the new President-elect.
We are expecting over the course of the next hour to see Mr. Trump leave Trump Tower. He will then go to the airport and fly down to Washington
where he will have his meeting with President Obama, a meeting that's largely expected to be one of formalities of protocol and procedures. But
it is the first time that President-elect and sitting president will have met and you will see it at all right here on Quest Means Business.
It all happens after a night of protest in America.
(BEGIN VIDEO CLIP)
UNIDENTIFIED SPEAKERS (in unison): Not my President! Not my President!
(END VIDEO CLIP)
QUEST: Not my President was the call from protest, cities from Seattle to Chicago to New York, even in Washington, D.C. Thousands of demonstrators
drop to the streets in opposition to the result of the election. The protests were largely peaceful. There were some disturbances in Seattle
but all in all, it went off without incident.
Manu Raju is in Washington. And the nature of the protest, they were loud, they weren't huge but do we get the feeling that they are likely to be
MANU ROGER, CNN SENIOR CORRESPONDENT: We do. I think that this is something that the Trump presidency is going to have to grapple with going
forward. You're really seeing just this outrage among people, mostly younger people -- millennials in particular, people did not vote for Donald
Trump, shocked at his victory and wanted to express their outrage on more than 25 American cities, these protests broke out overnight, some of them,
a lot of them spontaneous.
I think you'll start to see some more organized demonstrations including in front of Trump properties like here in Washington, in front of the Trump
hotel. People gathering, shouting, see burning dumpsters and flags in other cities as well. So that is something that where Trump is going to
have to grapple with going forward as a sign, Richard, just how divided this country is right now particularly in the aftermath of that shocking
election on Tuesday night.
QUEST: And this meeting that takes place today, I mean the president, President Obama was very quick after congratulating Mr. Trump to invite him
to the White House. The analysis I was saying last night on Anderson Cooper 360 was very much the idea that it will be a formal meeting, one of
procedure to set in place a smooth, elegant transition, what's your understanding of what it's about today?
ROGER: Yes, I think it will be a very cordial meeting, a very polite meeting. Actually Donald Trump behind the scenes and closed doors, people
often say he is very approachable, very almost conciliatory, something that you don't really see in the public image of Donald Trump. But I think that
for sure President Obama will give him some advice and I'm not sure how much he's going to push back on some of the things that Donald Trump has
said on the campaign trail but just a remarkable development.
[00:05:00] I mean remember, Richard, Donald Trump questioned the legitimacy of Barack Obama's presidency by questioning whether or not he was born in
the United States. Of course, President Obama is born in Hawaii, later Donald Trump grudgingly acknowledge that he was eligible to be President
but all of that really just is a cloud (ph) around today's meeting, especially how aggressively to President Obama so that Donald Trump should
not be president of the United States, he's not qualified to be president on the campaign trail.
But I think they're going to put that bad blood behind them and try to showcase to the country and the world that the United States can have a
peaceful transition of power even among two parties that are bitterly divided.
QUEST: Sir, good to see you, thank you, you'll keep on watch for us on the events taking place in Washington.
The Dow Futures incidentally pointing to a higher open, taking a look at the market, these are the way we're getting ready for the start of the day.
There's nothing really on there at the moment obviously but you can see the way some of the earliest markets, and the European voices, not only Europe
but also into Asia.
There were strong gains that we can classically call the bounce back because it was Asia that had traded during the turmoil, if you like, of
election night when it seem that the result was going Donald Trump's way. So Asia now responding to the 255 point gain on the Dow, the Dow opens just
about 40 or 50 points shy of its record high. Jonathan Jacovino (ph) is with me. Good morning to you, sir.
JACOVINO (ph): Good morning, sir.
QUEST: How good to see you.
JACOVINO (ph): Pleasure.
QUEST: What a day.
JACOVINO (ph): It was such a day yesterday, it was quite interesting to see the market volatility, the market activity, the apprehension in the
morning and then conviction in the afternoon as to what was going to happen.
QUEST: OK, so I have one view that says it was when Donald Trump spoke during the night and like sort of a very conciliatory gracious message that
that's what turned the sentiment. Is that making too much of it?
JACOVINO (ph): I think that's a very good and keen observation there because there was a lot of to be expected as to what President-elect Trump
was going to say and how he was going to accept that election results. So his personality, the way he delivered that speech I think helped our
markets gain some stability.
Overnight, the markets were very volatile and it takes some time for the markets to really digest all the information and get what they really want
to do to get to the next day.
QUEST: So we now move into no man's land period about transition. We know the policies that are going to be put in place so he's going to try to.
What's the market's more considered view today?
JACOVINO (ph): The view now is going to be how we're going to get between now and to the first day of when he is in office. There is a lot that's
going to happen, there's a lot that's been said, we do have to keep into consideration what the fed wants to do with interest rates, that's a
conversation that's going to occur in the next few weeks.
So between that and what President-elect Trump is looking to do, I think that's what's going to give investors some opportunities to short their
QUEST: I had sort of people saying, I mean, what's the mood actually. I mean, there were some booing yesterday at various points and, you know, the
market has been very uncomfortable at times. What did you say the role mood is about the prospect of a Trump presidency for the next four years?
JACOVINO (ph): I think the market doesn't like uncertainty in any terms.
JACOVINO (ph): Right. So coming into this, there is a lot of uncertainty as to what he said he was going to do and what he is actually going to be
able to get accomplished? We don't know that and we won't know that for quite some time but it does seem that as you spoke in your lead in the
meeting today with President Obama and President-elect Trump that's a very good sign.
Ms. Clinton's speech yesterday she held her head high and said the right things, that was a very good sign. It seems like right now, the -- both
parties are going to come together to get us to that first day of the administration.
QUEST: We have so much to talk about in the future.
JACOVINO (ph): Thank you.
QUEST: Sectors, those that will gain, those that will lose, we'll need your help as we continue our understanding. Excellent, thank you very much
indeed. Now, one of the big issues that we've heard and talk about has been Donald Trump's claim that over the course of a Trump presidency,
economic growth is going to be a priority in his vision and view to make America great again.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENTIAL NOMINEE: We have a great economic plan. We will double our growth and have the strongest economy anywhere in the
(END VIDEO CLIP)
QUEST: Now, how is he going to do that? What are the policies that Donald Trump is actually going to do? Well, first of all, you're going to have
aggressive tax cuts and financial deregulation. You're also going to have renegotiation or withdrawal from trade deals such as NAFTA, TPP is a thing
of the past most people believe.
And there will be tariffs on U.S. companies producing overseas. The message is clear, send jobs overseas and your company will face tariff
bringing those products back into the United States.
[00:10:00] Finally, the prospect of big spending on infrastructure is a core policy of Donald Trump.
Greg Valliere joins me from Washington. How good to see you, we need your wisdom and guidance in these turbulent times sir. Of the Trump suite of
policies, which one do you think we need to focus on immediately?
GREG VALLIERE, CHIEF GLOBAL STRATEGIST, HORIZON INVESTMENTS: I think taxes, Richard. I think you're going to see an effort starting very soon
by Paul Ryan to put a bill together and I think Trump will accept just about anything Ryan gives him.
QUEST: And on that tax plan, obviously Trump comes into office on January the 20th and how quickly do you think they will be able to enact a
comprehensive tax plan along the lines of Trump's campaign promise?
VALLIERE: Well, I think individual reform is still difficult because we haven't decided as a country what do we want to do with the mortgage
deduction, charitable contributions, things like that. But business tax reform and most importantly international tax reform I think is doable by
summer. I think the international reform would have this repatriation where U.S. warehouse could bring back profits they stashed abroad at a very
low rate, quite stimulative in my opinion for the macro economy.
QUEST: Right, but it's only worthwhile bringing -- having the repatriation 10 percent tax policy, either the same time they change the tax code so
that those overseas profits don't build up again in the future. There has to be the other side of that coin so that companies continue to bring back
the profits, doesn't it, doesn't it?
VALLIERE: Yes, and I think that's well recognized, I think people who will be writing the bills will make sure it's not just a one shot deal. So that
I think will move -- I think immediately, maybe the day of this inauguration, he'll begin dismantling regulations whether it's the
fiduciary rule or some climate change rules. A lot of regulations the business doesn't like will get killed.
QUEST: Is there a danger that a lot of these regulations which on a knee- jerk basis, Greg seem to be, you know, he has been against. But frankly, you know the old line and act in haste repent at leisure. Many of these
rules have been around for a long time and they are there for reasons or be it those that he may not agree with.
VALLIERE: I think there are some flashing red lights. One is the law of unintended consequences. Another is that he could over promise, people
could expect too much. But the big risk in my opinion at all of these is bond yields I think what we saw yesterday is just the beginning of a
sustained move higher in yields because all these stuff is going go cost money.
QUEST: We'll talk about yields in after the break. Greg, wonderful to see you.
QUEST: And good to have you this morning, thank you sir. Bond yields, yes, of course, we absolutely saw what happened on the bond mark yesterday.
It was one of the biggest talking points along with the global trade as Quest Means Business from the New York Stock Exchange continues, global
trade on the agenda next. Good morning to you.
[00:15:26] UNIDENTIFIED FEMALE: All right, it looks as though we're having a little technical difficulties with our Richard Quest on the floor of the
New York Stock Exchange, we're trying to get him back a little bit later on in the show. In the meantime, as the dust settles from staggering
presidential election, global economies are weighing up what a Trump White House will mean for world trade.
Trump has of course promised to rip up major trade deals and on the campaign trail repeatedly threatened to slap tariffs on some of America's
biggest trading partners including China.
(BEGIN VIDEO CLIP)
TRUMP: Because we can't continue to allow China to rape our country and that's what they are doing, it's the greatest theft in the history of the
(END VIDEO CLIP)
UNIDENTIFIED FEMALE: All right, it looks like we have Richard Quest back on the floor of the New York Stock Exchange, Richard over to you.
QUEST: Well, thank you very much, Chang (ph). Yes, so the question of course is what happens in the relationship with China. Andrew Stevens is
in Hong Kong joins me now.
Andrew, the relationship between a Trump presidency and China is likely to be fractious initially and we are seeing the evidence of that in the
currency of yuan. What's been happening?
ANDREW STEVENS, CNN INTERNATIONAL ANCHOR: Well, we're certainly seeing the yuan down against the U.S. dollar today. But in all honesty, Richard, that
was really a story about a soaring dollar because a dollar is also very, very sharp against the Japanese currency, against the Australian currency,
against South Korean currency. And this has all to do with a fiscal stimulus which you've been talking about to get the U.S. economy moving
But you're absolutely right, the relationship between China and the U.S. is key. It is key to the global economic system. These are the two biggest
economies in the world. President Xi has already run Donald Trump to congratulate him and he looks forward to a good working relationship.
Now, what the Chinese is saying here and I'm in Shenzhen which is in Southern China. This is the boom town, the people I've been speaking to
here, they are really paying their hopes Richard on the fact that Trump the candidate is a vastly different man to Trump the president and the sort of
rhetoric we have heard, we just heard there that China is raping the U.S. businesses that it is a currency manipulator, that though again, he is
going to impose 45 percent taxes.
That was all campaign rhetoric, it won't carry through in reality when he's president. I talked to Jack Ma on Alibaba, he said the same sort of thing
but it's a big hope. Donald Trump has really made a career out of this stand against this sort of global trade. So at the moment, it's good if
you know the markets in Asia today which you were talking about earlier.
You know, Japan up 7 percent. All the markets up, they're focusing on a strong U.S. economy under Trump at least initially but this longer term
issue China, U.S., will there be sanctions against China that leads possibly to a trade war and that is where things get really, really dire.
QUEST: We'll be hearing later in the program your interview with Jack Ma, Andrew Stevens who is in Shenzhen for us. As we continue to take you
around the world, we will show you what's happening in the New York Stock Exchange in just a moment.
Now, we're just about 14 -- 13, 14 minutes from the opening and the tension has sort of started to build up, more people are arriving at their various
stations ahead of the opening bell.
Nina Dos Santos is in London and watching the European markets. A down day yesterday, they're recovered by the close and now London is trading and
European both says Nina, trading on the back of a strong Wall Street on Wednesday.
NINA DOS SANTOS, CNN CORRESPONDENT: Yes, with the exception of the FTSE100 as you could probably see behind me here, Richard. This market has been
falling for the last couple of hours amid concerns by British investors and Donald Trump has spoken to a number of world leaders but he hasn't actually
spoken to Theresa May, the U.K. prime minister. And that's a big concern here for investors because many people are hoping that the U.K. could
foster a closer relationship, economic relationship with the United States after Brexit.
But so far, the hand of friendship hasn't yet been extended, and that's why some people are quite worried about that. But for the rest of the region
as you can see, European stock market is really on a tear for a second day, stating their biggest comeback since the month of March.
Some of the big sectors that are really doing quite well at the moment, commodities, infrastructure companies, and it hopes that Donald Trump will
spend big on infrastructure projects as per his campaign pledges.
[00:20:05] We're also seeing the energy sector doing well because he's well known as a skeptic of climate change, pharmaceutical companies doing well
and it hopes that they can protect their margins and the banking sector as well.
But further down the line, there are still questions about what the Donald Trump presidency will mean for companies on this side of the Atlantic. A
lot of people are very concerned about the rhetoric on trade and protectionism. We just heard Andrew Stevens mentioned China, that China is
a big market for a number of these listed companies here. A number of them also send their goods across the Atlantic to the United States.
We've got big trade deals that are being negotiated and that they will -- may well be dead in the water. Also, he's promised to repeal banking
regulation. That could be good for banks. Banks are doing well today. And last but not the least, big questions about whether Federal Reserve
will have the confidence to raise interest rates in the United States come the end of the year, Richard.
QUEST: Nina Dos Santos is in London. We continue to look at the market reaction and the way in which business is adjusting to what is happening
and what is likely to happen. John Defterios is in Abu Dhabi and joins me now.
There's been a lot of concern obviously, John, on the political front obviously on the question of Trump's comments about Muslims. However, when
it comes to business and economics, the reaction this morning, please?
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: The reaction is, it's amazing how quickly the political climate has changed, Richard. Less than a year
ago, Donald Trump called for a ban on all Muslim visitors and migrants to United States. A sizable property and gulf course project, for example, in
Dubai was suspended as a result, and did offer his range of consumer goods as well at the Luxury Inn (ph).
At that time, many declared, it's interesting, a Muslim world of 1.6 billion consumers would reject Trump. But listen now to the tone from the
Arab business community, especially here in nearby Dubai.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: At the end of the day, people make decision which is good in their country, for their country. So whatever decision he has to
make, he has to look on the benefit of the present goods. And that is for him to decide, but I don't believe the world is going to -- economy is
going to collapse because he thinks he want to, you know, penalize China business or build the wall in Mexico and so on.
(END VIDEO CLIP)
DEFTERIOS: So alluding to the fact, we have to see his position about Mexico and China in terms of trade, but here's a new twist, Richard. Since
being elected, that original statement calling for the ban has suddenly disappeared from Donald Trump's website. Perhaps, it is a more moderate
president-elect emerging right now.
And the other big issue here, of course, is Iran. The Iran file is actually the one issue that could unite a Trump administration, they are
gulf states in Israel and that is no simple feat. When speaking to a pro- Israel lobbying group nine months ago, Mr. Trump declared it was his number one priority to dismantle the deal, but at the same time he said I want to
give access to American companies as the number four proven reserves of oil around the world, number one when it comes to natural gas.
And so far, we've seen only Total of France, for example, signed the first energy deal, Monday, before the U.S. election. It's going to be a big
issue for 2017. Richard?
QUEST: John Defterios who is at the New York -- who is in Abu Dhabi. I'm Richard Quest and I'm to the New York Stock Exchange. We'll be talking to
our Akbar Al Baker, the chief executive and chairman of Qatar Airways very shortly.
And this issue of trade which is very much a way -- once you move away from the immigration question and the taxation question of Donald Trump's future
policies, you very quickly end up with the biggest talking point which is trade. Rana Foroohar is with us Global Geopolitical Analyst.
Rana, the question of trade, it really breaks down to three areas, doesn't it. It's NAFTA, it's China, and it's TPP. And any one of those, Donald
Trump is threatening to append the conventional wisdom.
RANA FOROOHAR, CNN GEOPOLITICAL ANALYST: Yes, absolutely. You know, trade is one of those areas where the president actually has a lot of leeway to
act. So I would not be at all surprised if by next year you saw higher tariffs slapped on China and on Mexico.
I mean, he's made it very clear that that's a priority and it's one of those things that you don't necessarily need to get all of Congress on
board to do, even though it helps that Congress is now Republican, of course. So I think that that's definitely coming. The implications
economically are going to be very difficult to gauge in part because we've never had this sort of a major unilateral action from the U.S., really
since the great depression, when -- which was set off in fact by a trade war.
But a lot of executives that I talked to were worried because this isn't just a matter of penalizing these countries. The U.S. gets a lot of its
supply chain from these countries. There are a lot of small parts that are made in China and Mexico that are coming in and out, in and out of the U.S.
[00:25:00] In complicated supply chains, every single time you make those more expensive and you slap a tariff on it, that costs U.S. business too.
So it's a dual-edge thing. Yes, maybe you make U.S. finished goods more competitive in the global market place, but you're also adding cost for
QUEST: Right. But here's the issue, Rana. Whatever he does, nobody can say that they weren't warned and knew it was coming. I mean, Rana, at the
end of the day, this policy, particularly on China, calling them a currency manipulator, it's in his contract with American voters, this idea of
renegotiating or withdrawal from NAFTA. Nobody can say he wasn't elected to do this.
FOROOHAR: That's absolutely right, Richard. And, you know, it's true. I mean, really, after all this, feed to fire, and say this is what you ran on
and this is what you got to do. NAFTA in particular, I think, was always Hillary Clinton's weak point. It was very unpopular deal. It was sold by
Bill Clinton's administration as being something that was going to bring a lot of prosperity to America. It didn't really. It hollowed out the Rust
Belt and that hurt her. You can see in those Rust Belts cities, they were clearly voting on this issue.
QUEST: Rana Foroohar who joins me on the trade question. We'll be talking a lot more about that.
We're heading towards the opening bell on Wall Street. That's going to do what we are going to expect. We remember election night itself, the market
is off, the best part of, I don't know, I mean, 900 points on the Futures.
It opened yesterday, down. It rallies towards nearly an all-time high, and then we actually managed to end up very strongly 255 points. And so, you
come to the New York Stock Exchange on a day the specialist and the market makers are getting ready before the opening bell. There is very much a
move and a feeling now of the atmosphere builds up towards the opening bell which takes place.
And incidentally, the opening bell up here will have the trophy from the Chicago Cubs which won the World Series, and that will take place over
there as the opening bell gets ready to be rung. If we can get a little bit closer, just a touch closer so we can see the morning starts. There's
the trophy and the opening bell is next.
[00:30:17] QUEST: Good morning from the New York Stock Exchange live coverage. This is Quest Means Business. They had the Chicago Cubs with
the World Series trophy ringing the opening bell, how appropriate the Cubs win the World Series after 108 years on the same month, if you like, that
Donald Trump wins the presidency in a historic election on the same week that we now have a record opening at the New York Stock Exchange with the
Dow futures very much pointing to an opening of over 90 points higher once the market gets under way. That will take the Dow into, to use that
horrible phrase, record territory. And while we wait for the first early numbers, the market gets under way, just have a look at the screen to see
The Dow is showing up that is right up the top there, the Dow is up 73.03 points. So we are now into, just looking at my producer, we are into a
record area as we've contemplate that and put it into perspective, let me give you the news headlines.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Donald Trump. Not my president.
(END VIDEO CLIP)
QUEST: Here we go. The news headlines this morning to you. There's been a wave of mass protest across the United States in response to Donald
Trump's shocked presidential victory.
Rallies were held in at least 25 cities, chanted anti-Trump slogans, set fires and held candle-lit vigils to mourn the result. Dozens of people
arrested as the protest continued through the night and into Thursday morning.
Around 90 minutes from now, President Barrack Obama will meet President- elect Trump in the Oval Office. It marks the official start of transition between the two administrations.
To India, people in India are curing to exchange 501,000 rupee bank notes following the prime minister's decision to withdraw the notes as part of a
government crackdown on corruption and tax evasion. Indian banks closed on Wednesday in order to stock up on new rupee notes
And Chinese rescue crews are searching for a five-year-old boy trapped in an abandoned well since Sunday. Authorities say food and water have been
sent down the shaft, oxygen is being pumped in. It's not clear if the boy is still alive. We'll have following details on that.
Now, now the market is open. The Dow has rallied straight up by 104 points. It sets an all-time high. That's the number you're looking at
We need Keith Bliss to help me understand. Hello, Keith, what an extraordinary day.
KEITH BLISS, TRADER: Yes, it really is an extraordinary two days, three days if you like.
QUEST: And you have the Cubs trophy.
BLISS: Yes. Well, as you correctly pointed out, it is a year of oddities, the Cubs winning the World Series for the first time in 108 years, a
candidate out of nowhere, taking the highest elected office in this country, essentially obliterating the two political parties in the process.
QUEST: What is driving this rally this morning? There's been no new news, there's no earnings, there's no economic data, but we do have a president
going to meet -- president-elect going to meet the president, what's driving this rally?
BLISS: Well, there's a couple of things. Number one, it's certainly a sense of relief in the aftermath of the election. The sun did come up, the
world didn't come to an end, the nuclear was not started. So the markets have been trending towards a consolidation point in the three months up to
leading to the election. So there's this sense of relief and money is being put to work as a result.
The other thing that is occurring inside of the market though is really related to Trump's state policies around deregulation, around taxation.
And this -- and around trade policy too which is helping American companies lifted its pocket (ph).
QUEST: OK. But I'm just going to be argumentative here and put the other points. You can arguably say those same policies could create a trade war
and will create larger budget deficits as far as the eye can see. Why is the market choosing to focus on the positive rather than the negative?
BLISS: Because markets always focus on the positive. Remember, markets are driven by fear and greed and right now the greed is taking over the
fear. Fear was running our markets for the prior three months. You're absolutely right. If he imposed -- if we get all of his tax policies, we
will balloon the debt in this country by 11 trillion dollars over the next 10 years.
[00:35:05] It could spark a trade war. I think that's probably a little bit of an absurd notion, that's not going to happen.
QUEST: So, in a sentence, does this rally have legs?
BLISS: Well, we've clipped to all-time highs in the Dow Jones Industrials. We're not there yet in the S&P 500. We're not there yet in the Russell
2000. We're getting there in the NASDAQ. So it absolute could have legs if we keep trading higher. A lot will depend on how we close out this
QUEST: A lot will depend on how we talk to you in the future as well, sir.
BLISS: Well, thank you so much.
QUEST: Delighted you are with us.
BLISS: Thank you.
QUEST: Many thanks indeed.
QUEST: So Keith Bliss there, talking to us on that question.
Before we talk to Qatar Airways, I just want to give you an idea of the mood. I mean, there really is an absolute positive feeling as trading gets
under way. It's always busy around this area as the market makers and the initial pricing takes place at the point of sale, that's normal.
But there is quite clearly an optimism that is fueling this rally that's under way that's now taken down, not the S&P but it's taken the Dow to an
all-time high. We need to talk about business and put this into some context.
Joining me now from Doha is the Chairman and Chief Executive of Qatar Airways Group, my old friend Akbar Al Baker. Akbar, chief, you were very
quick to come out with a statement in support of President-elect Trump when -- but why did you feel it was necessary and why did you want to put out
that statement so soon?
AKBAR AL BAKER, CEO, QATAR AIRWAYS: Well, I did put out that statement because what I said to you just over a year and a half ago that whatever he
said, he didn't mean it, and now indicated. He already said the next opening stage that he would like to really make a new page in the
relationship and he wants all the Americans to be together.
Let me tell you something that, that Trump is a businessman and I always expected that he will do exactly what is the -- in the best interest of
America and America business. In addition to this, I'm sure that he will develop good relationships with everybody especially the Middle East and in
particular my country because my country is a very strong ally of United States. And Trump would appreciate this.
Not only that, I would also like to invite him again to my country. He was already here before a couple of times. And I would like again to showcase
him the finished airport which he did not have the opportunity to see. So I hope that Trump will make his first foreign visit to my country and -- to
us here because we are still his friends.
QUEST: Akbar, do you think that President Trump will be better for the air -- for the gulf airline industry, yourself and Emirates (INAUDIBLE) and the
effectively, the rally (ph) that took place in the last two years is well and truly over.
AL BAKER: Business acumen we, of course, overrule everything else. He will realize that this is in the best interest of the American public that
they have competition from the gulf carriers and that we hope as we have already concluded on our discussions with the current American
administration that even uphold their opinion to see that we did was absolutely correct in creating competition and providing the American
people with the choice that they didn't have on the ground.
QUEST: And finally and briefly, Akbar, the question on this relationship with the Muslim community, do you believe that Trump's pragmatism will
overweigh his previous comments that basically extreme vetting and the restriction on Muslims visiting the United States?
AL BAKER: I am absolutely confident that that statements will be taken forward by him because he knows that all the people that come to his
country from our region are there for business or leisure and they are very pro-American people. So I think that what he's thinking in general about
Muslims is not going to implement because he is very sure himself that the statements he made was really not required and was not appropriate.
QUEST: Good to see you, Akbar. I thank you for joining us this morning from Doha. Akbar al Baker, the Chairman Chief Executive of Qatar Airways
This idea of pragmatism over maybe even principles that will eventually tell true is one that was also expressed by the head of Alibaba, the vast
Chinese product internet company.
[00400:08] Jack Ma was talking to Andrew Stevens who was asking him bearing in mind, Trump has promised some very strong anti-China trade policies,
does he think that it'll actually take effect?
(BEGIN VIDEO TAPE)
ANDREW STEVENS, CNN CORRESPONDENT: Do you fear that U.S.-China relations under a Trump presidency?
JACK MA, CHAIRMAN, ALIBABA: Well, I don't fear. I think a healthy and positive China-U.S. relationship is so critical, especially in this
century, number one. Number two, economy in the world, if they're working together, they can solve a lot of problems, poverty, disease, environment.
But if they don't like -- if they don't work each other, it's going to be disaster.
STEVENS: But if you look at what has been said on the campaign trail, China, a currency manipulator on day one of the Trump presidency, massive
punitive taxes, tariffs on Chinese goods going to the U.S., that must worry you.
MA: Worried me but it's not that much. I think when he become the president, when we have the burden, because before I've become the CEO of
Alibaba, I can talk like this and that. When I become the CEO of Alibaba, I know life is not easy. The world is not that simple as you saw it.
Donald Trump become the president of America and he's a smart person. He will adjust. He should never and he would never neglect the relationship
between China and America.
STEVENS: So if you were asked to give advice to a new Trump administration, what would you tell him?
MA: Focus on trade, improve globalization, and improve the relationship and understanding between China and America. And we are in the 21st
centuries, working together improve globalization, working together improve trade that will help both countries to create more jobs.
STEVENS: Have you ever met him?
MA: Not yet.
STEVENS: You were quite close to President Obama. You appeared on the states several times together. Are you looking forward to meeting the new
MA: Yes. Yes, I'll be happy to discuss with the job creation, small business entrepreneurship, trade between America and the world and trade
between China and America. This is -- I would love to discuss. I think nobody can neglect business trade job, small business entrepreneurship in
the 21st century.
(END VIDEO CLIP)
QUEST: Jack Ma talking to us shortly. Coincidentally, you can see, it just happened to be pure luck at this trading section the Alibaba Group,
which is this if you can see the shares and how's the trading of Alibaba is taking place at the moment. Also on the screen, the Dow Jones Industrials
have 166 points, the S&P is also up.
We are one and truly into a -- the record. The question now, of course, is for those countries like Mexico. When we think about Trump's comments on
Mexico and you see the way the peso has reacted, then we need to consider the next moves for the Mexican economy. We'll be in Mexico City after the
Quest Means Business, live from the New York Stock Exchange. Good morning.
[00:45:00] QUEST: So a very busy day on all fronts. On the political front, you have Donald Trump who today, in the next couple of hours, will
be going to Washington to the White House. He's expected to leave Trump Tower anytime soon and will be heading down to Washington.
The first meeting of the president-elect with the incumbent president to discuss and start the official transition process that leads all the way
through to January 28th. On the economic and the financial front, you have markets that are absolutely rallying but the Dow Jones Industrials is
trading at an all-time high and with me in this New York Stock Exchange of course Alison Kosik. Good morning to you.
ALISON KOSIK, CNN CORRESPONDENT: Good morning. Hi.
QUEST: There is a mood here this morning, isn't it?
QUEST: Describe it.
KOSIK: You know, what's interesting is you look at what happened yesterday, you see what's happening today and that big stock market freak-
out that everybody was predicting if Donald Trump became president, that hasn't materialized.
KOSIK: I think you're seeing Wall Street give Trump a warm welcome because you're seeing the focus come off of those anti-trade policies at least for
now until they hear more and instead focusing on the fact that there's going to be a Republican-controlled president, a Republican-controlled
Congress, and the likelihood of getting those spending bills through, although it's not perfect, it's closer to where it was, let's say, a year
ago. So I'm talking about infrastructure, pharmaceutical companies, up as well, defense spending.
QUEST: I know this is a mass generalization but can we say that the market, and by the market I mean the people in this room, got the result
KOSIK: I would say yes because you walk around, you ask them who really they wanted to win, I'd say the majority say Donald Trump. Before that
though, we did see the markets sell off quite a bit on nervousness about him being elected because it was that nervousness --
QUEST: Right, but that can also be the difference between the people here who are market makers and sort of strategic investors sitting in --
QUEST: -- around the world.
KOSIK: Right. So that should -- I would say the traders here, the majority wanted Trump. Maybe those sitting in -- under behind Wall Street
desks maybe thought differently and wanted Hillary Clinton because she's sort of more of the same. She's the consistency candidate.
QUEST: It's all over.
KOSIK: It is all over.
QUEST: Whatever they wanted, they've got.
QUEST: Lovely. Good to see you.
KOSIK: Good to see you too.
QUEST: Look at the market locks off (ph) 175 points. One of the major talking points, not as much talking point, has been the question of the
Mexico peso. It fell about 9 to 11 percent on election night. It's still down by another 2 or 3 percent this morning. Let's get the latest peso
numbers, Ed Lavandera is in Mexico City joins me now.
Ed, the Mexican president sort of had warmish words. The market is giving its own reaction though on what it perceives to be is going to be a very
stormy relationship between Mexico and Washington.
ED LAVANDERA, CNN CORRESPONDENT: Yes. I think there's a lot of uncertainty, Richard, exactly how this relationship is going to play out.
As you mentioned, this morning in those early hours after the announcement that Donald Trump would be -- is becoming president-elect, it dropped the
peso. The value of the peso dropped dramatically against the U.S. dollars.
This morning, just a little over 3 percent but there's been a great deal of fluctuation that's speaking to that uncertainty. And the president of
Mexico, Enrique Pena Nieto really hasn't addressed directly some of the more striking comments that Donald Trump has made over the months. This
whole idea that Mexico would be paying for the wall along the U.S. southern border that Donald Trump vows to build.
He hasn't really addressed that in his public statement. He's essentially been offering an olive branch reminding Mexican citizens and the U.S.
government that Mexico and the United States are friends that they should continue to work together. But there hasn't been any direct talk about
some of the more controversial ideas.
However, we also know that Donald Trump has talked about tearing up the NAFTA Trade Agreement. There, it was kind of interesting, yesterday, the
Mexican foreign minister suggested that they would be open to discussing "modernization" of the NAFTA trade deal, not scrapping it all the way but
So perhaps a little window there, but clearly banking and finance officials here in Mexico moving very quickly to try to reassure the Mexican public
that everything will be fine, given all of this uncertainty, and they're trying to reassure folks here in Mexico that everything will be fine.
There had been a great deal of concern. Some people talking about how the election of Donald Trump could bring a "hurricane" to the Mexican economy.
[00:50:01] So a great deal of concern on that front. Richard?
QUEST: Ed Lavandera, Mexico City, the peso down 3 percent. We'll watch that as the hours move on. When we return, Quest Means Business live from
the New York Stock Exchange, Gillian Tett, managing editor to the -- U.S. managing editor for the Financial Times will be with us. We need to put
this into some context, the global picture after the break.
QUEST: Some would describe it as political improvisation, others would say it's maverick policies, but Gillian Tett, the U.S. managing editor of the
Financial Times, is firm of the view that there has been a sea change in politics which of course his best exemplified by Donald Trump. Gillian is
with me now. What do you mean, Gillian?
GILLIAN TETT, MANAGING EDITOR, FINANCIAL TIMES: Well, I think that's been quite a change in style at least as far as a campaign was concerned. And
that the Clinton campaign was super, super professional in establishment.
They used every single trick in the book that the establishment has developed in recent years to run that company. Be that data analysis, be
that starlets, be it carefully managed scripts, and so on. And it did not work. What was seen of the Trump team though is improvisation. They have
essentially grown a very chaotic somewhat human-improvised scrappy campaign. And although many of the establishment elites have sneered, the
reality is that seemed popular. And I suspect that's going to carry on into the new administration too.
QUEST: Right. But there's a difference, isn't there, between improvisation and amateurish. And in the sense that Donald Trump tapped
into an undercurrent, a deep swelling undercurrent of our knees, one said the other.
TETT: Well, this is about establishment versus anti-establishment, elites versus anti-elites. But to me the question is I think we're going to see
this, I think we're going to see this slight scrappy, if you like, amateur anti-professional star carry on into the new administration. But I also
think that we are beginning to see the germ of policy platforms emerging. Nobody knows exactly what Donald Trump is going to do.
He's not going to deliver in the same way as before. But no one should discount the fact that we may just may be at the beginning of a policy
inflection point and that's one thing that the markets are now reacting to.
QUEST: So if you're right, Gillian, then it is incumbent upon everybody else, not just in the political elites here, the Congress, but also the G7,
the G20, the IMF. Everybody else will have to rethink how they respond to this improvisation technique of Donald Trump.
TETT: Absolutely. I mean as you may know it, of course, I was actually trained as an anthropologist. And one of the things that anthropology
tells you is just how little you know. Because looking in the world through someone else's eyes is invaluable. Many of us have forgotten that
lesson in the last few years.
[00:55:04] We have got to put up preconception aside, look at what is happening in terms of how politics is being done and look at the ideas that
are floating around with fresh impartial eyes. Donald Trump may turn out to be a complete disaster, we just don't know. But there again, we may
just may be at an inflection point not just in terms of style, although that's important, but also in terms of some of the bigger policy messages
too. I have a column going up in a couple of hours pointing this out. And I think it's a very important point that investors simply cannot afford to
QUEST: Gillian Tett, managing editor -- U.S. managing editor of the Financial Times. We're very grateful, we look forward to reading your
column, and we'll have you back again. Thank you.
TETT: Please do.
QUEST: Now, quick look -- thank you. Quick look at the markets how they are closing or at least as we come to the end. The Dow Jones is up 162
points at 18,751. It is at a record. The World Series is here and this is why we are with the World Series.
Going to leave you with me looking through -- now, it's not every day you get to do this. This is the World Series championship trophy won by the
Chicago Cubs after 108-year drought.
32 flags, I'm told, representing the number of teams. I ain't getting any closer to it because frankly there'll be large groups of people who will
wrangle me to the ground but a bit of history here, a bit of history here, and a bit of history here. That's Quest Means Business for the hour. I'm
Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. I'll see you later this afternoon.