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QUEST MEANS BUSINESS
Black Boxes Found in Columbia Plane Crash; Trump Names Two Top Cabinet Posts; New York Retailers Feel Trump Impact; Protest Against Britain's New Notes; Patagonia to Give Away Black Friday Proceeds
Aired November 29, 2016 - 16:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] ISA SOARES, CNN ANCHOR: Stock markets have bounced back as trading comes to an end on Wall Street. It is Tuesday, November 29.
Tonight, the black boxes have been found after a deadly plane crash in Colombia. I will speak to the head of the country's Civil Aviation
Fifth Avenue freeze out. Shops in Manhattan are struggling in Trump Tower. Shadow and grease your palm's with Britain's new five-pound note. Vegans
are upset. It contains animal fat. I'm Isa Soares, in for Richard Quest, and I to mean business.
A very good evening to you. Tonight, a football dream cut tragically short. At least 75 people are dead after a plane carrying a small-town
Brazilian team crashed in the very mountainous terrain of Colombia. After taking off from Bolivia the charter flight came down in the city of
Medellin on Monday night. A short while ago we learned that both of the plane's black boxes have been recovered. Now, six people survived the
crash and are in hospital. On board were the players and officials from Brazil's Chapecoense football club as well as more than 20 journalists.
Now, the team was due to play in the final of the South American cup. Speaking earlier, Brazil's president declared three days of mourning.
(BEGIN VIDEO CLIP)
MICHEL TEMER, BRAZILIAN PRESIDENT (through translator): I want once again to express regret for the unfortunate event that led to the death of a
soccer team and several people who accompanied the club from Chapeco this morning. It was very sad and the only thing that we could do, besides
praying for those who left, is to take measures within the federal government in order to give support to the families mourning at this
moment. The Air Force has airplanes available to take family members to Columbia. Evidently, it is also necessary to rescue the bodies and the
ministry of foreign affairs is working on it.
(END VIDEO CLIP)
SOARES: Michel Temer there. Well, Rafael Romo has more on a tragedy that's really shaken South America.
RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: A devastating site. The Colombian countryside littered with debris after a charter plane
crashed in the town of Cerro Gordo, southeast of Medellin. Among the dead are players from the Brazilian football team Chapecoense. The aircraft was
carrying 81 passengers and crew including more than 20 journalists. Search and rescue efforts have been difficult due to the rugged mountains and
Chapecoense was on their way to Colombia to compete in the first leg of the South American cup finals. The team took a commercial flight from Sao
Paulo, Brazil to Santa Cruz, Bolivia where they picked up this charter flight. They were headed to the airport in Rio Negara, Columbia when it
According to Colombian officials, the pilot declared an emergency a few minutes before the crash saying he was having some sort of electrical
failure on board. Satellite images show scattered showers and thunderstorms moving through the area at the time of the crash, which
would've cost some in-flight turbulence. However, it'll take some time for investigators to determine the cause of the crash. The Colombian Air Force
had to abort their mission to the site due to poor visibility.
Chapecoense had just celebrated a win last Wednesday. The team has been described as a Cinderella story and surprised many with their winning
performance in recent years, making it to ninth place in Brazil's tier one league.
The Brazilian National Civil Aviation Agency says, they denied the charter request of the Bolivian LaMia corporation to fly the team from Sao Paulo,
Brazil to Medellin, Columbia. Why was the request denied? Well, apparently, it didn't comply with international regulations. Rafael Romo,
SOARES: We'll be speaking to Columbia Civil Aviation Authority a bit later in the show. But first, I want to get the opinion of Mary Schiavo. She's
a CNN aviation analyst and the former Inspector General of the U.S. Department of Transportation. She's a well-known face here on CNN and she
joins us now from Charleston, South Carolina. Mary, thank you very much for joining us here on QUEST MEANS BUSINESS. As you may have heard, we now
have the two black boxes. From what you heard, are they in good condition and how long, Mary, will it take to process that information?
MARY SCHIAVO, CNN AVIATION ANALYST: Well, yes, the black boxes are in good condition. Because the initial report is there was not a fire. Of course,
that would also lend credence to the reports that they had declared a fuel emergency. That they had run out of war were running out of fuel. But as
soon as they get the black boxes and get them to a competent lab. That's the most important thing is a competent investigator that download the
They can have the data downloaded literally in the matter of minutes. But it's hours and days that it will take to interpret it. The cockpit voice
recording here will probably give a very clear picture of what happened and indeed will determine decisively if it was a fuel starvation situation.
But the report of an electrical problem before that, which sent them in one circuit on a holding pattern. They did a loop, a circle in the sky before
attempting to land or at least descending. That will probably take the flight data recorder to see what had gone wrong with the electrical system
that set off this chain of events.
SOARES: And of course, it's very rare that we have survivors. We are, obviously, very happy to hear that, but this is another aspect that will be
questioned. What would they be asking the survivors, Mary?
SCHIAVO: Well, the survivors become very important, eye witnesses and ear witnesses. Because we do have the black boxes, those of course, are the
first and foremost, but they will be asking the survivors, you know, what did they see? What did they hear? Did the engines stop? And of course,
that will be on the black boxes, too. Did they stop? Did one stop before the other? Was it fuel starvation? How bad was the weather? Could you
see anything at all?
Because you know, where this is -- and I've done a couple of crashes, represented a couple of plane crashes that happened in Columbia -- to the
east there is plains, an altiplano, and of course, the weather in the darkness probably contributed to the fact that they couldn't chance making
an emergency put down somewhere there. But they will ask all those questions of the survivors and the survivors are always very important eye
and ear witnesses.
SOARES: And Mary, how well-known is this airline LaMia? Because when I heard of it -- I mean, when I read it this morning, I never heard of it.
Is it well-known internationally? Is it recognizable, reputable?
SCHIAVO: The problem with airlines, and not like this, like many charter airlines, it was formed in Venezuela. And then they formed an off shoot in
Bolivia just in 2015 -- or a little bit before 2015. And then this plane itself, the plane is problematic. It had been in and out of moth balls.
It had been grounded for a while and as recently as 2015 had been taken out of service. And when you bring a plane back into service after being
mothballed, it's very, very important to check everything before you put it back into service. So, not only do we want to look at the history of the
charter company which operates in several different nations, and they're oversight. Because with Venezuelan, Colombian and Bolivian carrier you've
got several oversight authorities and things can slip through the cracks. But also, where was the plane and how long was it in moth balls? And what
happened to it after that?
SOARES: I want to take it back to the survivors, Mary. The fact that we had six survivors is very rare in situations like this. What does it tell
you about the way the plane came down?
SCHIAVO: Well, you know, actually it tells me that it is a miracle, to me, that any survived at all. Because we have the plane, and have the flight
tracked the radar flight tracks, and it was going along in a fairly high altitude. It descended a little bit and then abruptly lost air speed and
altitude. So, it was in a very steep dive with very little airspeed when it finally fell from the sky. And from the radar tracks -- now this could
be wrong -- but it looks to me like from the radar tracks it had actually entered a stall in a very steep dive. So, for there to be any survivors, I
hate to use the term miracle, because plane shouldn't crash. But it's very, very fortunate for them, because the precipitous drop of this plane
from the sky was quite dramatic.
SOARES: Yes, and it is in very mountainous terrain in Medellin. Mary Schiavo, always great to get your insight here on QUEST MEANS BUSINESS.
Later in the program, we're speaking to the head of the Columbian Civil Aviation Authority about the tragedy. Authorities tried to work out
exactly what brought this plane down.
Meanwhile, the stadium in Columbia where Chapecoense were supposed to be playing on Wednesday night. There will now be a memorial service instead.
Brazil's Football Confederation has called it one of the most tragic moments in the history of Brazilian sport. Brazilian teams they are
working on a plan to support Chapecoense with new players in the future.
The Columbian team Atletico Nacional was due to play the Brazilian side in the Sudamericana final. Now they say they want the trophy to go to
Chapecoense in memory of the players who died. And Pele has led the tributes from players right around the world. The Brazilian legend sent
condolences to the families of the victims, other players including the entire Real Madrid squad, as you can see there, took a moment of silence
[16:10:00] At Real's press conference earlier today, manager, Zinedine Zidane, said the entire football world stood with Chapecoense.
(BEGIN VIDEO CLIP)
ZINEDINE ZIDANE, MANAGER, REAL MADRID (through translator): Before we start this press conference I would like to send my support and the support
of my club to all the family and friends of the people that died in this accident in Columbia. And also of course, to the club Chapecoense and all
of their supporters. We are very sorry for what happened.
(END VIDEO CLIP)
SOARES: The Chapecoense was traveling to play the biggest game in the club's history. As you can see, these unlikely champions were riding high
last week after a win took them through to play Atletico Nacional. They gained a football following in Brazil and even though it was hailed as a
David versus Goliath match, the teams chairman said the players told him they were confident about bringing their cap back to Brazil.
Earlier I spoke on the phone with Leonardo Picciani. He's Brazil's minister of sport. He told me the crash couldn't have come at a more
LEONARDO PICCIANI, BRAZILIAN SPORTS MINISTER, BRASILIA, BRAZIL: It's a very, very sad accident. We are very consummated about that situation.
Like we don't expect or don't hope, so we pray and we try to do our best for support and their families. Chapecoense is mostly in the South of
Brazil. The team was in the finals of the Sudamericana cup. All the city was involved in this campaign of the team. So, hard this moment.
SOARES: Do you know when the bodies of the those who decease, when they will be returning home? When the mourning process, I suspect, has already
PICCIANI: We don't know yet, we'll have to wait. The Colombian authorities sees their work. There are planes, the Brazilian Air Force,
prepared to bring the bodies of the players and the Brazilian people that died in this accident.
SOARES: In the next few days, what are the most important questions that authorities in Brazil will be asking. Why did they take off? What
happened? What exactly do you need to know for the families to find some peace in this?
PICCIANI: All of the aspects of this tragedy will be investigated, will be considered. But it's very early to have a definitive conclusion.
SOARES: For international viewers, the team is, perhaps the first time they heard of the team, but they have done incredibly well, isn't it?
Growing up the football league of South America, Latin America, talk to us about how they have done. Because we've seen videos of them celebrating as
they came to the top of that league. What an incredible moment this was for them was in it?
PICCIANI: It was the first time that they'd been in the regional finals of the Sudamericana cup. It was a great feat or expectation for the people of
Chapeco, people of the South of Brazil. So, how can I say, it was a tragic moment. We sent the people on their means of sports to Chapeco and to
Medellin to help the families, to help the people.
SOARES: All our thoughts and prayers here on QUEST MEANS BUSINESS are with the families of those who died in that plane crash.
Donald Trump has named the people he wants to make two of his top priorities a reality. And he's preparing for a second meeting with one of
his fiercest critics. We'll have that after a short break.
[16:15:00] (COMMERCIAL BREAK)
SOARES: Time and time again during the U.S. election campaign, Donald Trump promised to repeal and replace Obamacare. Now, he's picked the man
to do that. Trump says he will nominate Congressman Tom Price as secretary for health and human services. Price spent two decades as an orthopedic
surgeon. He has said President Obama's health care law does nothing to make it better or more affordable.
Another signature issue for Trump, rebuilding America's infrastructure. Well, Trump has picked Elaine Chao to head the Department of
Transportation. Chao served as labor secretary under President George W. Bush. She's married to Senate majority leader Mitch McConnell. The
President-elect is still deciding on his Secretary of State. He is due to have dinner with Mitt Romney tonight. We'll see what comes of that.
Elaine Chao was on this program just a few days before the election. She told Richard Quest, she wanted to see a government that laser focused on
cutting down on regulations. Take a listen.
(BEGIN VIDEO CLIP)
ELAINE CHAO, U.S. TRANSPORTATION SECRETARY NOMINEE: Basically, if you have our government, as it is now, which is overly regulate regulated. The tax
rate is too high, and the regulations are basically creating a hampering effect on new job creation. Because if you're an employer, especially a
small business employer, you only have a certain pot of money. You can spend it for regulations or you can spend it to hire new people.
So, the over regulation of our economy -- there are so many examples, the health care system, the financial sector system, and so many others. It is
really discouraging employers from hiring. And small businesses are the largest employers. They're the ones that create the largest number of
jobs. Two thirds of the net new jobs created are being created by small businesses. We want to make sure the economic environment is vibrant and
is conducive to allowing, helping these small business employers to create more jobs, or have the courage to go out and take a risk and hire more
(END VIDEO CLIP)
SOARES: Elaine Chao there. Well, CNN's Stephen Collinson, is following the latest developments in Washington and he joins me now. Stephen, very
good to see you. What more can you tell us about these cabinet picks? Elaine Chao and Tom Price.
STEPHEN COLLINSON, CNN POLITICS SENIOR ENTERPRISE REPORTER: I think they're both a signal of intent from Donald Trump. These are going to be
clearly two key players in his cabinet. He's got a $1 trillion plan to overhaul America's infrastructure. That'll be up to Elaine Chao.
As you said, Tom Price will be in charge of repealing and replacing Obamacare. But for all of Donald Trump's railing on the campaign trail
against the Washington establishment. These are actually two pretty conventional picks. You'd struggle to find someone closer to the
establishment then Elaine Chao for example. She was Labor Secretary for eight years in the Bush administration. As you said, she is married to
Mitch McConnell, the top Republican in the Senate. Eventually, she may end up negotiating with Mitch McConnell over this infrastructure package. Tom
Price, he's a gift to the conservatives on Capitol Hill. He is an architect of several bills that the Republicans put together to replace
Obamacare, which could never come into effect when President Obama was wheeling his veto pen.
[16:20:00] So, I think this is really a sign from Donald Trump that infrastructure and healthcare, two of the key promises he made on the
campaign trail, it'll be right at the top of his action list.
SOARES: Stephen, despite the internal feud and infighting, we've seen expressions of dislike on twitter by members of President-elect Donald
Trump's team. It seems the President-elect is going his own way and is meeting for a second time with Mitt Romney. How should we interpret this?
COLLINSON: I think Donald Trump is very seriously considering whether to have Mitt Romney as his Secretary of State. Yesterday he met with General
David Petraeus, who's a revered figure in Washington over his conduct for the surge in the Iraq war. He is also considering Bob Corker, the chairman
of the Senate Foreign Relations Committee. I think this is a sign since he became President-elect, Donald Trump has looked around the world and
perhaps realized that he does needs the expertise and stature of a significant Washington and global figure in the crucial job of Secretary of
State. He clearly has no experience in that area himself apart from his international business dealings. He's the only U.S. president ever elected
without political, military or diplomatic executive experience. So, I think he really is looking at this. A few weeks ago, it looked like Rudy
Giuliani, the former mayor of New York, was going to take this job. Now it looks like perhaps one of these other three characters is in the hot seat,
as it were.
SOARES: I find that I'm really thinking this through and scratching my head here, Stephen. Because one part we've seen the meeting and sometimes
we see Kellyanne Conway take to TV and twitter to put Mitt Romney down. So, how should we read this?
COLLINSON: I think it's a symptom of the way Donald Trump does business. He sets up competing power centers in his orbit. He doesn't seem to mind
if a subordinate goes on television and makes a kind of argument that she's making that, you know, Romney would be very, very opposed by Donald Trump's
grass roots base. I think that's just the way Donald Trump does business. I think we're going to have to learn when he becomes president to perhaps
sort of temper our expectations about how a president behaves and the way he puts things like cabinets together. It's all different with Donald
Trump. At the end of the day, if you talk to people in Trump's transition team, nothing is certain until Donald Trump has decided. And the Secretary
of State job, particularly, he is really taking his time.
SOARES: Yes, very much like reality TV unfolding, isn't it? Stephen Collinson, thank you very much. Great to see you.
Trump has pledged to get America's economy growing at 4 percent a year or even better. A new reading shows a girl at 3.2 percent rate in the third
quarter of this year. That's the fastest in fact, in two years. Those numbers you can see pushed U.S. stocks pushed U.S. stocks slightly higher
even as a fall in oil prices hurt energy shares. You can see the Dow ended the day nearly pretty much unchanged.
Shares in Tiffany's finished about 3 percent higher after quarterly sales went up for the first time in two years. The jeweler says sales in the
U.S. have been hurt by all the security chaos literally surrounding its flagship New York City store. Which has the Trump tower for a neighbor.
Claire Sebastian joins me now. And Claire, you would have thought that Trump Towers next to your business would have perhaps been good for
business, but not the case?
CLAIRE SEBASTIAN, CNN MONEY CORRESPONDENT: No, Isa, not the case at all. There is an interesting quote from the movie, "Breakfast at Tiffany's",
which of course, features a flagship store. The character says, "I always heard people in New York never got to know their neighbors." Well,
unfortunately for Tiffany's the store, they've got to know their neighbors a little too well. Take a look.
SEBASTIAN: When it comes to prime retail locations, it doesn't get much better than this, New York's 5th Avenue. Home of the flagship Tiffany's
store since 1940. And a symbol of New York glamour. Unfortunately, even if the location is perfect, you can't always choose your neighbors.
No longer the Hollywood glamour of "Breakfast at Tiffany's". Since Donald Trump selection, barricades have been put up. There's a major police
presence and traffic is gridlock. Partly the results of the constant stream of visitors. Protecting the U.S. President-elect is said to cost
New York $1 million a day, according to city officials. And now it's costing Tiffany. In its latest earnings release, Tiffany says it has
noted, "some adverse effect on traffic" in its 5th Avenue store. Tactfully avoiding mentioning the new President-elect by name. Instead referring to
"recent election-related activity."
The security outside of Trump tower, did that impact your shopping at all?
UNIDENTIFIED FEMALE: Yes, is difficult to access Tiffany for start, yes.
UNIDENTIFIED FEMALE: If you're on a mission for Tiffany you're heading into Tiffany.
SEBASTIAN: Tiffany says this store accounts for less than 10 percent of its sales, but still a significant part of the business. The hope now is
that people keep coming for the diamonds despite the store's slightly rough exterior.
[16:25:00] SEBASTIAN: So, Isa, I went into the store and I spoke to the managers there and they did tell me that for them it's been business as
usual pretty much. But then again, this isn't the first-time Tiffany has seen some impact from their now world famous neighbor. Are ready this
month they've had to cancel their holiday window unveiling. That's a staple of New York's holiday season. All the stores along Fifth Avenue
did. Of course, the company is saying today that they expect that the impact on that flagship store could continue into the next quarter and
beyond 10 percent nearly of sales, no small matter.
SOARES: I like the statement of adverse effect on traffic. Oh, Claire, very quickly. How do New Yorkers feel about this? Because, you know,
walking up and down Fifth Avenue you do have to go around in circles, didn't you, to get to places.
SEBASTIAN: Yes, I mean, today you saw the weather was not great at all in New York today, and New Yorkers are used to disruption. Everything from
papal visits to Thanksgiving parades. They're used to traffic and disruption of that sort, but this is bigger and we don't know how long that
will go on for. The mayor has promised unprecedented security measures right up to the inauguration. But of course, we know that Trump's wife,
Melania and his son Baron are intending to remain in New York through the summer, through the end of the school year. And we don't know yet how much
of his time he'll be spending here, while of course, being based in Washington. So, this is an unprecedented situation and something new for
SOARES: yes, New Yorkers should just embrace it. Claire Sebastian, thanks very much.
Now, oil prices are tumbling ahead of a key OPEC meeting, as crude exporters squabble over production levels. We'll have a story for you,
SOARES: hello, I'm Isa Soares. Coming up in the next half hour of QUEST MEANS BUSINESS, I'll speak to the head of Columbia Civil Aviation Authority
with the latest in the investigation into that deadly plane cash.
And I will speak to the shops that will are giving the income they made on Black Friday to charity, all $10 million of it.
First these are the top news headlines we're following for you on CNN this hour.
Columbia Civil Aviation Agency said the co-called black boxes from the charter plane that went down near Medellin have been recovered and they're
in perfect shape. Authorities say six people survived the crash. But at least 75 others did not. The victims include most of Brazil's Chapecoence
football club and fans are devastated.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through interpreter): There are no words to describe it. Everyone was dreaming for something beyond for Chapeco. It's over
[16:30:00] The whole team left us in such a way. There's nothing to say.
(END VIDEO CLIP)
SOARES: Law enforcement sources tell CNN they believe the Ohio State University attacker was inspired by ISIS and late cleric Anwar al-Awlaki.
Earlier the media ring of ISIS said that Abdul Razak Ali Artan was an ISIS soldier though it didn't offer evidence. The investigators say there is no
indication that Artan communicated with any terror group.
In England, former football coach Barry Bennell has been charged with eight counts of sexual assault against a boy under the age of 14. The crown
prosecution service released its statement about the charges, which says the alleged incidents are not recent.
Chelsea football club says it's opening an investigation into an unnamed employee in the 1970s who has since died. The statement does not specify
the nature of the investigation, although it does mention sexual abuse.
U.S. President-elect Donald Trump is drawing criticism for proposing that those who burn the American flag be punished. That came in a tweet where
he suggested the consequences could be jail time or even a loss of citizenship. Two U.S. Supreme Court rulings protect the act as a form of
free speech under the First Amendment. The White House is now weighing in.
(BEGIN VIDEO CLIP)
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Many Americans, the vast majority of Americans, myself included, find the burning of the flag
offensive. But, we have a responsibility as a country to carefully protect our rights that are in the Constitution.
(END VIDEO CLIP)
SOARES: Hundreds of buildings have been destroyed in fires near America's Great Smoky Mountains National Park. The resort city of Gatlinburg,
Tennessee has been inundated by forest fires. Dozens of structures including a 16-story hotel have been burned. Gatlinburg's Fire Chief says
the worst appears to be over.
Now the price of oil tumbled nearly 4 percent on Tuesday, as you see there, ahead of a key OPEC meeting. Iran and Iraq had been at odds with Saudi
Arabia. The Saudi say they want a deal to cut production with the aim of boosting oil prices. Saudi Arabia's oil minister says the oil could keep
flowing because the U.S. economy is only getting stronger. Khalid al-Falih is anticipating an increasing U.S. demand under President Trump.
The latest data on U.S. growth, as I mentioned earlier in the show, came in stronger-than-expected. Michael Block, the chief strategist, Rhino Trading
Partners, he joins me now from New York. Michael, thanks very much for joining us here on the show. Let's start with the OPEC meeting. It does
seems that the Saudi's are betting on the President-elect, hoping he will grow the economy and that there will be a thirst for oil. Where do you
stand on this?
MICHAEL BLOCK, CHIEF STRATEGIST, RHINO TRADING PARTNERS: I'm guessing a lot of Saudi's voted for President Trump and they believe everything he
says. Either that or they're watching the U.S. stock market which just keeps going higher. It's had some fits and starts, but it doesn't go down.
Since the election, we had the initial shock when it went down when it became clear he was the winner, and then started moving higher and higher
and higher and higher and higher. It's as if everything that Trump was promising, more stimulus, more infrastructure building,
better jobs, better trade terms, and it happened instantly with the snap of the fingers, and it's all done.
To a point where as the Saudi's as they're trying to negotiate this agreement in Vienna -- the minister the other day, I pointed out in my
morning note to clients, he actually said, well, maybe we don't need a deal. And that was a little hardball reverse psychology, or whatever we
want to call it. But he actually came out publicly and said, well, if U.S. consumption is going to be great, because of everything that's going on there and because of the election. It's mind
blowing to me.
I'm not a big believer in either, A, this big stock market rally we had. I hope and it would be great if everything Mr. Trump is promising comes true.
And second, this OPEC deal I'm also a little skeptical on. I'd say the oil market, as you pointed out up top, oil is trading off today. Perhaps this
uncertainty is priced in. Will it get a deal or not? Right now, I'm in a camp that says, yes, they're going agree to something. They need to come
out with their trophy and say, hey, we made a deal.
It may involve them kowtowing a bit to Iran and Iraq and pretending they didn't by giving them a little more leeway on production. Or it may be
everyone nodding and agreeing that they're going to say yes right now, and then their actions will say no, unfortunately. We've seen this time and
time again. Is everyone really going to stick to targets when the Saudi government is under fire as they need to diversify their revenue streams.
You have a new King there and a new ambitious Deputy Crown Prince, Mohammed bin Salman, there. He wants to prove a point here. He's going to do
whatever it takes to solidify his power.
In Iran, there are elections next year. Certainly, a hard line there wants to make a statement that they can't get pushed around by anybody, certainly
not the Saudi's or the U.S.
SOARES: I'm not sure if an agreement will come out of all of this. Because, as you know Michael, there's been such disagreement between all of
them. You mentioned you're not a great believer in this rally, why not?
BLOCK: We always said that the stock market is a six-month discounting mechanism. You know, it's a voting machine, not a weighing machine, as
Benjamin Graham said. It used to be six months, where you say, Ok, if a company's going to have good earnings in the next couple of quarters we buy
the stock, we don't buy it on the past earnings.
It's almost as if people are buying bank stocks and industrial stocks now, Isa. Thinking that Trump's going to get roll into office in January and he
has this Republican dominated Congress, and they're all going to vote lock step, and they're going to deregulate Wall Street and deregulate the energy
industry. And they're going to make a new deal like the greatest thing since FDR and Ronald Reagan put together and they're going to build new
roads, and build interstates, and bridges and tunnels, and it's all going to flow in the U.S. And China and Japan are going to roll over and let us
sell them all the steel that our companies want to. And they're not going to fight that. That's a bit much for me. To say the least. Look, I want
to be optimistic. I want to say, Ok, let's see what you can do Mr. President-elect. Let's see what you can do Congress. Let's do it. God
bless America, I need a little more before I start diving in.
SOARES: We'll get you back and see whether or not you were right. Thanks very much, Michael. Good to see you.
BLOCK: Thank, Isa.
SOARES: On the eve of their meeting in Vienna, oil ministers from the OPEC nations do not seem to be any closer, as you heard me they're talking to
Michael, to an agreement on whether or not to freeze oil production. Our emerging markets editor John Defterios, is at the meeting and he joins me
now. John, this is a pivotal meeting. And the expectation is that the cartel could reach an agreement to cut back oil production. But so far, I
think it's fair to say, it's not going well. Why not?
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Well, it has been fairly nasty, Isa. Let's call it the last minute of horse trading, down to the
wire. This is moving now to hotel diplomacy, if you will. With five ministers at the Park Hyatt and five ministers at the Karpinski. And
they'll reconvening tomorrow at 8:00 a.m. They had 10 hours here at the OPEC headquarters and they could not break the impasse right now.
Let's look at the three major players at this hour. It's Iran, Iraq and Saudi Arabia. The Iranian minister there on the left, Bijan Zanganeh, has
wanted to climb production up to 4 million barrels a day. The last-minute proposal as we speak by Saudi Arabia is that they come down and park it at
3.8. Iraq is at 4.6 million barrels a day. An important number, they haven't really clarified whether they're going to come down. And Saudi
Arabia is now calling for burden sharing. Not all 14 members, because we have some exceptions like Libya and Nigeria, but they want Iraq and Iran as
part of the solution. And Saudi Arabia is meeting a lot of resistance, let's take a listen.
(BEGIN VIDEO CLIP)
MICHAEL ROTHMAN, CORNERSTONE ANALYTICS: There's almost everybody is on board except for two countries at this point, Iraq and Iran. And Iran
seems to be the stumbling block. There in kind of a contest with Saudi Arabia and they seem to be gaming them, so to speak, to try to avoid being
part of this deal in any way shape or form.
(END VIDEO CLIP)
DEFTERIOS: So, listen to the language that is taking place there. The reality is though that something has changed since the end of 2014. Both
Iran and Iraq combined about a 2 million barrels a day of production. This means that their overall production is nearly 8 1/2 million. Just slightly
shy of Saudi Arabia. So, it's no longer just Saudi Arabia's game here at OPEC. They're meeting the resistance from Iran and Iraq, and that is a
last major hurdle to getting the deal done tomorrow.
SOARES: But John, this sounds a bit like a pretty dysfunctional family. Is there someone there who can come in, restore order. What are the
options at this stage?
DEFTERIOS: It is funny you say that. Because Russia was going to participate in the cuts at this stage, and it got so nasty they decided to
stay in Moscow this time around. So, there are three options that are on the table. OPEC doesn't do anything with the cuts and they pay a very
severe price. We'll get more to that in just a second. They tread water by putting a kind of lukewarm offer on the table and say we can complete
the cuts in 2017, or they go with Saudi Arabian strategy that was presented as we take a look here from Algeria.
The Algeria plan that they came up with at the end of September. Cuts of 1.2, perhaps, 1.2 million barrels a day, with the non-OPEC players offering
600,000. This is what Iran and Iraq are pushing against, and let's not forget the geopolitical nature of it all. We have an approximate war
taking place in Yemen, between Saudi Arabia on one side and Iran on the other. Same thing plays out in Syria right now, and also there is a Trump
factor. Donald Trump has kind of promised to voters that he'll tear up the Iranian agreement. Of course, Saudi Arabia and Kuwait, back that proposal.
[16:40:00] So, Iran's playing some hardball right now. And I spoke to one major trading house that's here at OPEC, they said the price paid will be
going below $40 a barrel if they don't come up with than agreement. So, the heat is on, they know the heat is on, but the old rivalries between
Saudi Arabia and Iran right now seem to be prevailing at the very late hour here in Vienna.
SOARES: Yes, so you have a whole host of other countries, don't you John, who want exemptions, who want to grow production, like the Nigerians, like
the Angolans. Let me ask you this, what do you make of the idea that there is no deal that perhaps the Saudi's could potentially flood the market with
supply as retaliation?
DEFTERIOS: Well, Saudi Arabia was kind of knocking on near peak right now, Isa. They don't have a lot of upside potential. But the mere fact they
don't do anything, OPEC is at record production. We're actually near 36 million barrels a day. So, they're already flooding the market. So, the
market is oversupplied by 700,000 barrels a day and we're in the winter. So, Goldman Sachs was suggesting, if they don't come up with an agreement,
you have the oversupply of 700,000 barrels a day. That will grow to about 1.5 to 2 million barrels a day, if nothing is done by the spring. So, the
OPEC players know they have to put something on the table, rebuild credibility. Get the Russians, the Azeri's and the Cossacks from the non-
OPEC camp back at the table here to try to get something solid in the first quarter of 2017, and also, something that is transparent and realistic. It
has been lacking in the last three attempts in 2016.
SOARES: A very heated meeting. A very chilly, it seems, Vienna. John Defterios, very good to see you. Thank you very much.
In the U.S., we've got more breaking news for you. Patagonia was expected to bring in $2 million on black Friday, a company executive was surprised
when they made five times that figure. And get this, even more surprising, Patagonia says it's going to give it all away. We will speak to Patagonia,
SOARES: Welcome back to QUEST MEANS BUSINESS. Now in the U.S. Black Friday is pretty much the height of feverish consumerism, the delight of
retailers, of course. Patagonia, the outdoor clothing company says is racked in an impressive $10 million in Black Friday sales, this year alone,
but none of it will go to their bottom line. It says it's donating every dollar to groups working to protect the planet. Rich Ridgway, Patagonia's
vice president on environmental affairs, he joins me from Los Angeles. Mr. Ridgeway, thank you very much for joining us on the show. Explain to our
viewer why your company has decided to donate 100 percent of your sales to environmental groups?
RICH RIDGEWAY, VICE PRESIDENT, PATAGONIA: Since 1985 we have donated 1 percent of our sales right off the top, not profits, but sales, back to
environmental groups around the world. Last year that was nearly 800 environmental groups that are usually local groups working to protect their
backyard beaches and forests and rivers and wetlands. And then this year we decided on Black Friday that we would double down even more.
[16:45:00] Instead of 1 percent, we would give 100 percent of everything we made globally in our online sales and through our own stores back to the
environment, back to supporting the nonprofits around the world.
SOARES: Talk a little more about the NGO's, what kind of projects what will the money go towards? Give some examples.
RIDGEWAY: In the main these are small, local groups. They are working to protect their nature in their backyard. They're working to protect their
community, clean water, clean air and working to create healthy soils for their communities. In short, they are doing their part locally to create
globally a healthy planet. They believe in what we believe at Patagonia, we have firmly believed in the 45 years that we have been in business, that
without a healthy planet, there is no way any of us are going to have healthy societies, jobs, none of it will work if we continue to overuse and
abuse the planet like we have. These are groups working to reverse that.
SOARES: It seems like you might be at odds with your President-elect that called climate change a hoax. Do you feel that you need to do this? Are
your customers worried about this?
RIDGEWAY: We believe our customers are sending a loud and clear message to the administration, to the entire society that there are a major number of
people in the society who are unwilling to sell out the health of our planet to the highest bidder. Those are our people, we will support them
and they supported us. They supported us by showing up in our stores around the country on black Friday, and giving us essentially five times
what we projected they would do to support us.
And in turn, we're giving back all of that money, 100 percent of it. We had projected that we would have sales that might get north of $2 million.
It came in north of $10 million.
SOARES: I suppose at a time of such great division in the country. Do you feel that businesses like yours need to take a bigger role and donate or
speak up on politics and policies?
RIDGEWAY: We certainly hope they do. We strive to encourage other businesses to follow our lead and I think increasingly they are. They are
understanding the commitments to sustainability, to supporting environmental protection. Most of that value is coming from the fact that
their customers are supporting them as well. We think we're on the front end of a long-term trend here. And we hope that more businesses step up
and do their part.
SOARES: Thank you, great to see you.
A fat wallet, that's a good thing, but fat in your wallet, not so much. Vegans are enraged about what is in Britain's new five-pound note. We will
[16:50:00] (COMMERCIAL BREAK)
SOARES: Blood money, pound of flesh, both phrases are being used to describe the new British five-pound note. The bank of England has admitted
the bills contain traces of tallow that is made from animal fat. It has been used or years to make things like soap as well as candles. Well, that
revelation prompted a furious reaction from vegetarians and vegans.
More than 66,000 people have signed a petition calling on the Bank of England to stop using animal products in its currency and that petition is
just today. The company that makes the material says they're working on the problem. PETA U.K., they oppose the use tallow on environmental and
cruelty grounds Elisa Allen is the group's director and she joins me now. Explain to our international viewers about what tallow is? And why you are
calling for the contents of the note to be changed?
ELISA ALLEN, DIRECTOR, PETA U.K.: Tallow is the fat of a dead animal, it is a byproduct of the meat industry and the fact that our currency now
contains tallow is absurd. It is 2016 and we don't need to put animal parts in our bodies and we certainly do not need to be putting animal parts
into our currency. Today most everyone with exception of the meat industry knows that we need to be moving away from animal agriculture not towards
Even the United Nations has said we need a shift towards a vegan diet to combat the worst effects of climate change. No one needs to be propping up
this industry, definitely not the Bank of England.
SOARES: Did you know prior to this that it contained tallow?
ALLEN: No, this was a shock to us all. For god knows how long the currency has been made using paper. Recently plastic was introduced, but
of course nobody would expect that animal derivatives are found in what looks like a plastic bank note.
SOARES: But Elisa according to the company behind the five-pound notes, they only contain minute traces of tallow and they say they use it to make
the material more anti-static. In fact, I was reading it is being used more and more by central banks around the world because the material
resists dirt and lasts longer than paper cash.
ALLEN: Where there is a will there is a way. Today in 2016 there is a cruelty free, animal free, humane alternative to everything and that
includes bank notes. What is unfair is the new currency that contains animal parts means that millions of vegetarians and vegans in the U.K. are
forced to use a product that stands opposed to our principles. The other point is that we can't avoid the note for the time being, but it is
important to note that we can -- we're interested in helping animals and we can vote with our wallets and that includes not giving cash to industries
that harm animals.
SOARES: Let's see what the Bank of England does now with that petition, thanks very much.
In India, when the government decreed that 80 percent of India's bank notes needed to be withdrawn from circulation a few weeks ago, it left the
country in a cash strapped chaos. And many people could not pay for medicine or food. There is one group that has found a way to sidestep the
crisis. As our Ravi Agrawal reports.
RAVI AGRAWAL, CNN INTERNATIONAL CORRESPONDENT: These are the new norm in India. Long snaking ques at every bank and ATM. India has a cash crunch.
Hello, change for 2000 rupees?
It's the same story everywhere. It's hard to break a 2,000-rupee bill, about $30. And it's been like this for 3 weeks when the government pulled
all 500 and 1,000 rupee notes from the economy. And replace them with new 500 and 2,000 rupee notes.
And the government says they're trying to eliminate illegal untaxed money. But banks can hardly keep up. There is one clear winner, though. I am at
a New Delhi street market and there are a lot of roadside stalls and vendors here that sell all kinds of street food. Obviously, these are
places that are struggling because they're all of their transactions are all in cash, and this store behind me has started using something called
[16:55:00] Paytm is the top Indian digital wallet company and it seems to be everywhere. Founder and CEO Vijay Shekhar Sharma says this is boom time
for digital money in India.
VIJAY SHEKHAR SHARMA, FOUNDER AND CEO, PAYTM: When we started, we were about 150 million users. And now we are 160 million users in less than
three weeks, so 10 million customers signed in less than three weeks.
AGRAWAL: That is a 7 percent jump in 21 days and the growth is not limited to the big cities. Four out of seven Paytm users are in rule India.
Perhaps that is why the startup is valued at more than very 5 billion.
SHARMA: We have, fortunately, to create India into first world of payments.
AGRAWAL: Sharma says teaching Indians how to get online remains a hurdle. Which is why he employs a small army of 10,000 to sign people up. Back at
street food stores, I learned that my local vendor started using Paytm just three weeks ago. The day after India's move to ban old notes. Already he
is making one fifth of his revenue from digital money. One small step for local businesses, but perhaps a bigger leap for India's digital future.
SOARES: Time now for a quick check on how European markets closed on Tuesday. It was a mixed session for the most part. FTSE down, Xetra Dax
up, the CAC actually the best performer. U.K. stocks you can see dropped as oil shares fell on concerns of the OPEC meeting. But on the whole,
European stocks were helped by a rebound in Italian banking stocks.
That follows media reports that the ECB is ready to buy more Italian bonds if the referendum leads to market volatility. If you want a daily digest
of the top business stories delivered to your inbox, subscribe to the QUEST MEANS BUSINESS newsletter featuring Richards Profitable Moment and all of
the top headlines from the rest of the CNN money team. Just go to CNNmoney.com/quest to subscribe. That is QUEST MEANS BUSINESS for today,
we'll see you tomorrow.