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Trump Pledges to Strengthen Trade with Canada; Trump Stands by Travel Ban; Trump Praises Female Executives, Aired 4-5p ET
Aired February 13, 2017 - 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] ZAIN ASHER, CNN ANCHOR: "Sports Illustrated" there ringing the closing bell, and it was a stellar day on Wall Street. The Dow ending up
triple digits, reaching another record high. Investors certainly optimistic about Donald Trump's plans for a tax reform. Financials also
higher as well. It is Monday, the 13th of February. Tonight, love thy neighbor. Donald Trump and Justin Trudeau look for common ground on trade.
I'll be speaking to Canada's finance minister. And records all around on Wall Street. It is a mega Monday for the market and no label, no problem.
Chance the Rapper makes music industry history at the Grammys. Hello, everyone. I'm Zain Asher and this is "Quest Means Business."
Welcome, everyone. Tonight, Mexico gets a wall, Canada gets a bridge of commerce. That's what President Trump vowed to build as he met the
Canadian Prime Minister at the white house earlier. The President said U.S. relations with Canada will be tweaked. Mr. Trump had, of course,
previously promised to renegotiate NAFTA or failing that, just completely rip it up. Justin Trudeau said any changes to the agreement must ensure
the free flow of goods and services. After that immigration, the Canadian prime minister said his country would continue to welcome refugees. He
added that he would not lecture the U.S. on how to govern itself. President Trump began his remarks praising the values shared by the U.S.
and President, but he and Mr. Trudeau were at opposite ends of the ideological spectrum. And the Canadian Prime Minister made that very point
earlier today. Take a listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENT: Well, we just began discussions. We are going to have a great relationship with Canada. Maybe as good or better,
hopefully, than ever before. But there have been times where we have differed in our approaches. And that's always been done, firmly and
respectfully. The last thing Canadians expect is for me to come down and lecture another country on how they choose to govern themselves.
(END VIDEO CLIP)
ZAIN ASHER: All right. Let's talk more about that press conference. I want to bring in CNN's Steven Collinson, who is joining us live now from
Washington. Paula Newton is CNN's correspondent based in Canada. But today we're lucky, because she is with us on set in New York. Steven, I
want to begin with you. Obviously, we all talk about the fact that these two leaders could not be any more different. When you listen to what
Justin Trudeau said, he made it clear what Canada's values were, especially when it comes to immigration. It was subtle, but bold. I'm just curious,
how is this likely to go over with Donald Trump, do you think?
STEVEN COLLINSON, CNN WHITE HOUSE REPORTER: I think Donald Trump is OK, as long as there's not some kind of huge confrontation in the news conference.
Right now, Donald Trump has got serious domestic political problems. It seems as though there's a gap opening up between the rhetoric he expressed
on the campaign trail and the rhetoric he's using as President, at least in terms of foreign policy. We saw that late last week on china. He
reaffirmed the one China policy. He welcomed Japanese Prime Minister Shinzo Abe, like a long-lost friend to the white house, despite being very
critical of Japan on the campaign trail.
Then he said, you know, back in the campaign that NAFTA, as you said, was a disaster and he was going to rip it up. I think it's clear from what the
prime minister of Canada said today that that insofar as Donald Trump still has problem with NAFTA, it's problems with Mexico and the trading
relationship with Mexico. It seems, as you said, that Trump is keen to build bridges between the United States and Canada, at least on trade. I
guess there'll be some relief in Canada about that. On the issue of refugees, I think the prime minister quite artfully stated that Canada was
at odds with America's position, but that it would continue to serve as an example for the rest of the world.
ASHER: That was a way of criticizing Donald Trump's position, but not doing it openly, and I think that fit in with the desire of both leaders to
get through this news conference, to get through this visit without openly clashing with Trudeau, but while still playing to their domestic audiences.
So much at stake, Steven. I want to bring in Paula newton. So, Paula, obviously, Justin Trudeau, his main goal here is trade. It's his economic
ties between the U.S. and Canada. He also has a domestic audience at home that he, of course, has to play to? So how did he balance that fine line?
Did he do a good job of standing up and counting his values, but at the same time, getting what he wants in terms of trade.
PAULA NEWTON, CNN CANADA CORRESPONDENT: In terms of what Canadians are saying right now, he handled himself quite well. The trade issue for
Canada is an existential threat. Three quarters of everything that Canada exports goes to the United States. Justin Trudeau could not afford, no
one's kidding themselves, he could not afford to go there and insult President Trump or provoke him. But I think most Canadians think he did
stand quite firmly, from the fact that Canada has different policies when it comes to things like immigration. I have to say, when you look at some
of the video we showed, Donald Trump did look a little uncomfortable when he was talking there.
ASHER: The expression on his face, he sort of looked over to Justin Trudeau like, hmm, what are you saying right now?
NEWTON: Exactly, and I think that highlights the fact that he'll have to show a lot of patience with a lot of allies that he will not agree with
everything he says, whether it's on geopolitics or the economy.
ASHER: So, Steven, does the personal relationship between Trudeau and Trump, does it -- how much does it matter in terms of both parties being
able to get what they want?
COLLINSON: I think it matters for Donald Trump in one sense. He appears to be someone that does business in a very personal way. It's been very
striking, actually, the other visits from foreign leaders we've had British Prime Minister Theresa May, and Shinzo Abe, who I mentioned. Donald Trump
has gone out of his way to forge a personal relationship. He meets them at the door of the west wing of the white house, which is something President
Obama didn't do. He actually spent basically two full days and two evenings with Mr. Abe at his Florida resort in Mar-a-Lago over the weekend.
We never saw this kind of prolonged personal interaction between Mr. Obama and foreign leaders.
[16:05:00] President Bush used to invite foreign leaders down to his ranch in Texas. So, I think in many ways, Donald Trump, the businessman,
business is personal. And personal is business. So, I think this is the way we're going to see him conduct his relationships, especially because he
doesn't have a big grounding in geopolitics, in foreign policy. You can see that. You talked about how the news conference was somewhat awkward.
Donald Trump simply can't talk for half an hour about geopolitical issues. He doesn't have the background or the experience. So, the personal becomes
even more important than it might be in relationships between the prime minister of Canada, for example, and other U.S. Presidents.
ASHER: So, the personal is important, as Steven just mentioned. When will we know if, indeed, this meeting was a success?
NEWTON: You'll know when you have the first contentious issue on trade, which is going to come, because they're going to renegotiate some areas of
NAFTA. Donald Trump calls it tweaking. Well, all politics are local, when you get down to those local issues of trade, and there are some irritants,
let me tell you. The governor of this state, Andrew Cuomo, the governor of Wisconsin, they have a bone to pick to Canada, and they would tell you,
Canada's not so nice on trade. You have to see the way those competing interests behave. I have to tell you, the fact that in terms of the fact
for Trudeau to go in there and conduct a business-like meeting and agree to disagree, this is very important for many allies that are watching from
around the world. Justin Trudeau meeting with Angela Merkel later this week in Germany. I'm sure it's going to be an interesting conversation.
ASHER: And the press conference playing well back home in terms of how Trudeau brought up Canada's values. Thank you so much.
Economic cooperation was at the top of the agenda for good reason. Canada is the U.S.'s second largest trading partner just behind China and ahead of
Mexico, $2 billion worth of goods and services crossed the border every single day. 75 percent of Canada's exports go to the U.S. the key to
keeping those goods moving is NAFTA. And is the North America Free Trade Agreement. In Canada, support has grown dramatically. Canadians believe
their country has benefited by a margin of 3-1. Just eight months ago, they were split on whether it was a good or bad thing. At the white house,
Justin Trudeau and Donald Trump said economic corporation would help Canada and the U.S. as well.
(BEGIN VIDEO CLIP)
JUSTIN TRUDEAU, CANADIAN PRIME MINISTER: Both President Trump and I got elected on commitments to support the middle class, to work hard for people
who need a real shot at success. And we know that by working together, by ensuring the continued effective integration of our two economies, we are
going to be creating greater opportunities for middle class Canadians and Americans now and well into the future.
TRUMP: I agree with that 100 percent. We have a very outstanding trade relationship with Canada. We'll be tweaking it. We'll be doing certain
things that are going to benefit both of our countries.
(END VIDEO CLIP)
ASHER: All right. So, let's talk more about the importance of trade between both of these countries. Bill Morneau is Canada's Finance
Minister. He is traveling with the prime minister and joins me live now from the Canadian embassy in Washington. Bill, you are the perfect person
to talk to about this. I'm just curious, as finance minister, what exactly is your role in ensuring that Canada actually gets a fair deal from these
BILL MORNEAU, CANADIAN FINANCE MINISTER: Well, great to be on your show. Clearly, from Canada's perspective, we look at the importance of the
relationship between Canada and United States as being so important for Canadians. We have, you know, 2.5 million Canadians that are involved in
the trading relationship with show. Clearly, from Canada's perspective, we look at the importance of the relationship between Canada and United
States as being so important for Canadians. We have, you know, 2.5 million Canadians that are involved in the trading relationship with the United
States, relying on their jobs. And 9 million Americans that are relying on trade with Canada. So, from my perspective, it's fundamental to our
economy. It's a relationship that makes an enormous positive impact. And we are looking to improve it over the years.
ASHER: But Bill, you know, Donald Trump talked about, you know, that he plans to renegotiate NAFTA in a way that both the U.S. and Canada end up
winning. They'll both end up getting what they want. Do you have any more specifics on what exactly that means?
MORNEAU: Well, we haven't started those discussions yet in specific detail. What we did talk about today is the importance of our borders and
how we can consider how we can actually improve trade across our borders. We did talk about the fact that we want to look at how we can, you know,
increase employment in both countries. These are positive starting points. You know, clearly, there's going to be much work to be done, as we think
about ways to improve NAFTA from both of our perspectives. But working to have those discussions.
ASHER: Do you see Mexico ending up sidelined in all of these discussions?
[16:10:00] MORNEAU: Well, we've always been of the view that the NAFTA relationship between our three countries has been a positive one. The
scale of the relationship across all three countries is strong and important. We do think that the United States has a different set of
discussions with the -- with Mexico than they do with Canada. And at this stage, I can't really give you a clear sense of how those discussions will
ASHER: Still waiting for some clarity. Let's talk about your counterpart in the U.S., Steve Mnuchin, I presume you haven't met him yet, because he's
still waiting to be confirmed. Just in terms of common ground, where do you see the working relationship between you and Mr. Mnuchin going?
MORNEAU: Well, I'll start by saying, yes, I haven't met him, because he hasn't been confirmed, but I have had the opportunity to speak with many
people, friends in common, and heard many positive things about Mr. Mnuchin. So, working forward to meet with him. We have a fair number of
important things to start discussing. President Trump has talked about the importance of potentially investing in infrastructure in the United States,
an approach we've taken in Canada. They've looked at, at least discussed the possibility of how they can improve taxation rules for U.S. business.
That's obviously something we'll want to talk to them about, to understand their direction. So, I'm looking forward to the relationship and expecting
it to be a positive one.
ASHER: But just in terms of the relationship between both administrations, on the one hand, you have Canada, Canada believes in multi-lateral trade
agreements, you know, you were part of the TPP as well. And then tough Donald Trump and his administration who pushed the idea of America first.
How do you find common ground with that system?
MORNEAU: Well, I think from the Canada-U.S. relationship, we start there. Common ground is really looking at the impact on a state-by-state basis or
a province-by-province basis of trade. It's a very common one, we begin with that and move out from there. Our focus listen how we can enhance our
relationship with the United States. Certainly Mr. Mnuchin and myself will be together at the g-7 finance tables and the g-20 finance tables. So,
we'll have discussions on how we can improve our parts in the world together.
ASHER: Donald Trump went from talking about, you know, ripping up NAFTA to renegotiating it. In your opinion, how do you think NAFTA can be
modernized in a way that benefits both the United States and Canada as well?
MORNEAU: Well, you know, as I said, we haven't started those discussions. I think any trade relationship can clearly be improved. We will be wanting
to think about the areas that we haven't had a as much success. We'll want to be enhancing the ability for businesses that have had success to be even
more successful. So, hopefully there'll be the areas where that will be important. But really, we're not there yet. So, I think it will be
important for us to begin those discussions with a spirit of collegiality, starting from a good position, and knowing that we can do better.
ASHER: And just putting NAFTA aside, obviously, Canada's part of the TPP. Do you see a future for the TPP to still go ahead without the United
MORNEAU: Well, we absolutely see our continued engagement with trading partners around the world as important. So, the parties that were involved
in the TPP discussions are countries that we will continue to seek to have positive trading relationships with. We will endeavor to do that in
whatever multi-lateral form comes forward or on a bilateral basis. But, yes, we're going to continue to be open to positive trading relationships
around the world. Right now, clearly, we're in Washington to enhance what has already been a very successful, enduring relationship. One that we
know that can continue to be positive for both countries.
ASHER: Yes, the meeting in Washington, clearly a priority for your administration. Thank you so much, Bill Morneau, thank you so much.
With the U.S. markets hitting all-time highs, we're asking, who gets the credit? Paul la Monica this is it might be Janet Yellen or even Barack
Obama. Paul joins us next.
[16:15:00] (COMMERCIAL BREAK)
ASHER: Welcome back, everybody. Wall Street is kicking off the week in record-breaking news. The Dow and NASDAQ all hit brand-new highs. Fueling
the rally, more optimism of what the economy could be under Donald Trump. At the end of last week, the President said a major announcement on taxes
would be on the horizon. That overcame a few days of nervousness triggered by a lot of protectionist rhetoric from the white house. And now the bulls
are running strong again, Paul la Monica joins us live now. Paul actually pointed out that we are both in green, just like the market. This fueled
by Donald Trump's promises of tax reform? So, do we have any specifics?
PAUL R. LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: We still don't, but I think it's fair to say, one question I raised in the story today, can we
really say that the market is rallying because of Trump? Remember last summer, everyone thought Hillary Clinton was going to win and the market
was going up.
ASHER: Just last week, the market was down.
LA MONICA: Stocks are still going up, because she didn't win? I think Janet Yellen and the feds deserve a lot of credit for the market still
going up. Janet Yellen will be testifying tomorrow in front of Congress. She, more than the President, may be the one to keep this rally going if
she has dovish talk.
ASHER: In terms of what is boosting the rally, financials also playing a major part, is that also because investors think that there's going to be a
LA MONICA: I think part of his rate hikes will help financials, but to give credit to the President, bringing back some of the regulations,
cutting back Dodd-Frank will help. We've seen that with health care as well. But we've had such a broad rally across the board, isn't, Zain, just
the stocks that should benefit from stimulus. You've got a lot of consumer stocks going up as well. And I think people feel that the economy's in
decent shape. That's something Trump inherited. He didn't create the growth we're seeing.
ASHER: But he can get credit for this sort of loosening of regulations and a better business environment.
LA MONICA: Oh, definitely! Stocks going up as well. And I think people feel that the economy's in decent shape. That's something Trump inherited.
He didn't create the growth we're seeing.
ASHER: But he can get credit for this sort of loosening of regulations and a better business environment.
LA MONICA: Oh, definitely! I'm not trying to suggest that Trump deserves none of the credit whatsoever. But as is often the case, a President will
wind up getting more of the accolades and blame when the market is either doing well or not so well. And a lot of times, it really has to do with
central bank policy. And they are lucky right now, Trump and Obama before him, to have Janet Yellen being very accommodating.
ASHER: We'll hear from Yellen tomorrow. Let's talk about one stock that is getting a lot of attention today. Apple. In large part, because
investors seem to be excited about new features coming out on new iPhones.
LA MONICA: The iPhone 8, assuming they call and it don't give it a fancier name, because it's the tenth anniversary, there are rumors about possible
wireless charging. So, Apple's stock hitting a closing high. It's still not at the intraday high from a few years ago, but it's very close to its
record. And its market value, Zain, is now more than $700 billion. So, we're going to start talking once again about whether it could be a $1
ASHER: It's going to be interesting. Also, for tomorrow with Yellen testifying, investors are also going to be paying close attention as they
listen about that possible rate hike.
[16:20:00] LA MONICA: We know that the fed is going to raise rates probably two to three times this year. But an influential fed member, Jim
Bollard, recently suggested, maybe it's going to be one and done, like last year and the year before. And I think the market likes that. If Yellen
sounds like there could be a couple of rate hikes this year and in 2018, that might be a problem.
ASHER: Paul La Monica, thank you so much. Appreciate you being with us.
European stocks all closed higher for the third day in a row. Some investors viewing President Trump's recent talks with other leaders as a
sign he'll take a more conciliatory stance on trade and foreign policy. On the market, CAC 40 was Europe's top performer was up around 1.25 percent.
New forecasts from the EU gave shares a lift. The European commission says for the first time since the financial crisis, every country in the EU will
see GDP growth this year. It also raised its growth forecast from the Eurozone to 1.6 percent in 2017, but edit did add a pretty significant
caveat, and that is, there's a higher than usual level of uncertainty, forecast because of unpredictable factors because of President Trump and
the impact of the process. That's why it's warning that the risks to the forecasts are exceptionally large. And the balance of risk is tilted to
the downside. I want to bring in Christian Schulz with Citigroup. He joins us from London. Are these the risks we already know about, such as
the Greek debt crisis and Brexit. Or are there other factors on the horizon that we might not be so clear on?
CHRISTIAN SCHULZ, EUROPEAN ECONOMICS DIRECTOR, CITIGROUP: Well, I think one worry that we all have for this year is that inflation is coming back.
The EU commission has raised the inflation forecast, as well. Now, we're used to this fear of deflation and that's perhaps gone, but inflation
brings some new risks, especially for the consumer. Because wage growth is weak in Europe. Now inflation is picking up. That means real income
growth is not going to be as strong in previous years. And that means consumption will be under pressure. That is also in the forecast of EU
Commission. It expects consumption to slow a little bit, investment to be stable and the external side, global trade to help us through this period
in 2017. That's one economic downside, but all the others are really political risks and you have mentioned quite a few.
ASHER: This is the first time since the financial crisis that growth has been forecast in every single country, every single economy in the EU. So,
explain to us, why are these economies so resilient, given the risks you just talked about?
SCHULZ: Well, you were talking in the U.S. about the influence of the central bank and Janet Yellen's fed is doing a good job in keeping U.S.
growth high. Mario Draghi and his European Central Bank are certainly doing the same. It's behind the Eurozone. This central bank is keeping
the whole thing together. It's keeping interest rates lower. But also, the ECB has started very slowly to dial down the stimulus this year.
They're not going to buy as much anymore as they were last year. In a few year's time, maybe they hike interest rates, too. The faster the growth
is, the faster unemployment comes down, the more that moment approaches as well. And that's going to be a moment of truth for Europe, and especially
for those countries with high debt ratios.
ASHER: How do these economies then prepare themselves or adapt to this challenging environment, changing environment?
SCHULZ: Well, the idea would be structural reforms. That countries get themselves ready for higher interest rates, for a tougher going on the
inflation side, as well. Labor market reforms. Some of the candidates at the French Presidential elections, for instance, are making, I think, the
right noises, more flexibility and working hours and these sorts of things. But we also still need to bring down deficits and we need to get these debt
ratios on a downward trajectory. Overall, it looks pretty good, but individually, countries still have debt piles that aren't really coming
down. Greece is one and Italy is another one to mention
ASHER: How important is it to make sure that growth is felt by all? That growth is inclusive in this case? That all of the economies in the EU feel
the benefits of growth?
SCHULZ: Well, we have a -- we've seen a period of elections, mainly in those countries mostly affected by the crisis in Greece, in Spain, in
Portugal, where not extremist parties, but parties which were anti- austerity, anti-some of these reforms made big gains. And that was obviously driven by a disappointment about the economic, you know,
trajectory of economies. This year is slightly different we have those economies that actually faired relatively well, the Germans, Netherlands
and even France of this continent. There the topics are a bit different. It's not so much the economy that worries people. It may be outside
France, it's more the immigration topic that plays a big role after the refugee crisis a few months ago.
[16:25:00] ASHER: And politics, right?
SCHULZ: Yes. And that is -- that's really the topic of this year. Yes, growth needs to benefit everyone, but, I think this year in terms of the
elections, it's perhaps not so much the economy that's going to play the big role, it's more the backlash of the after the refugee crisis, which we
had in 2015 and '16.
ASHER: Christian Schulz, live for us in London, thank you for being us.
The UAE's energy minister says OPEC members have done better than expected in delivering promised cuts in oil prices. Oil production is falling,
showing members are largely standing by an agreement to pump less crude oil. The minister spoke to our John Defterios in Dubai.
JOHN DEFTERIOS, CNN MONEY EMERGING MARKETS EDITOR:
SUHAIL MAZROUEI, MINISTER OF ENERGY, UAE: What's important is the commitment that all of those countries gave was over a six-month span. And
the second important thing is that we don't vary from one month to another hugely. So, to see a 90 percent compliance or an 80 percent compliance in
one country, we will see it 120 percent in the next month. And some countries have complied more, according to secondary sources. But I think
this is within the expectation and even better, in my view, for the person.
JOHN DEFTERIOS, CNN MONEY EMERGING MARKETS EDITOR: We have OPEC over 90 percent, but the non-OPEC players is hovering around 50 percent. When do
they get the wake-up call to live up to the spirit of the agreement?
MAZROUEI: I think it's the beginning, but I think talking to them, what I hear from the committee, that they are willing to comply or they are
gradually complying. And that level of compliance will increase to achieve within the six months, a compliance that they require.
DEFTERIOS: We saw the largest monthly gain in the U.S. rig counts since 2012. This points to a shale recovery of 2,000 barrels a day, does it
defeat the effort in OPEC and non-OPEC players?
MAZROUEI: I don't think so. If we are cutting and other countries are not increasing and some are increasing slightly, 300 to 400,000, that is not
going to be defeating the coalition. And let's not forget, this is coming from a decrease of around a million barrels. So, 300,000, that is not
outside the expectation.
ASHER: John Defterios speaking with the UAE energy minister there.
It's an issue dear to the heart of Ivanka Trump, the first daughter, finding ways to help businesswomen. We'll see if the fruit of her effort
are bearing fruit. After the break.
[16:30:00] (COMMERCIAL BREAK)
ASHER: Hello, everyone. I'm Zain Asher. There's more "Quest Means Business" in just a moment. But first, these are the top headlines we're
following for you at this hour.
U.S. President Donald Trump stood by his controversial travel ban, while hosting Canadian Prime Minister Justin Trudeau, at the white house. Mr.
Trudeau says he holds a different view, but it was not his place to lecture.
(BEGIN VIDEO CLIP)
JUSTIN TRUDEAU, CANADIAN PRIME MINISTER: Canada and the United States will forever be a model example of how to be good neighbors. Winston Churchill
once said that long Canadian frontier from the Atlantic to the Pacific oceans, guarded only by neighborly respect and honorable obligations is an
example to every country and a pattern for the future of the world. That, my friends, is the very essence of the Canada-U.S. relationship.
(END VIDEO CLIP)
ASHER: Tragedy on the slopes in the French Alps after four French nationals are killed during an avalanche on Monday. The four men,
including three family members and a ski instructor, were off-trail when the avalanche hit, burying them. The avalanche measured around 300 meters
And at least 32 people are dead and a dozen more injured after a tour bus overturned on a highway in Taipei Monday night, according to state media.
The passengers were returning from a sightseeing tour of seasonal cherry blossoms when the accident occurred. It's unclear what caused the crash.
An offshoot of the Pakistani Taliban and a group known as the Avengers of Waziristan are blamed for a deadly bombing in Lahore. The blast went off
at a protest killing at least 14 people and wounding 59.
Part of today's meeting between Donald Trump and Canada's Justin Trudeau was a joint commitment to do more for women in business. The white house
says the President's daughter, Ivanka, has led the initiative and she joined female executives from North American companies, including gm, to
launch it. The title is a little bit of a mouthful. It's called the U.S./-Canada council for the advancement of women, business leaders, female
entrepreneurs. A little long. Mr. Trump says he's always valued women in the workplace.
(BEGIN VIDEO CLIP)
TRUMP: From my past life, I had so many women executives who were phenomenal. Phenomenal. Who really helped me a great deal in business.
So, that was really fantastic. They play a tremendously important role, women, in our economy.
(END VIDEO CLIP)
ASHER: I want to bring in Kate Bennett, our white house reporter in Washington. Kate, thank you so much for being with us. We haven't heard
that much from Donald Trump when it comes to issues of equality. Was this roundtable somewhat surprising, given that?
SUHAIL MAZROUEI, WHITE HOUSE REPORTER: I think the message on the campaign trail might have sort of isolated women in terms of messaging, but this is
very much Ivanka Trump's influence. She has yet to be named into a formal role in the white house. She's still -- she said she's raising her kids
and getting them settled in the new house in Washington and doesn't want a formal role. However, here she is at the table, discussing weapon's
issues, which are really important to her, women in business. She talked about it this summer at the convention, sitting at the table today with
Justin Trudeau and her President, the father. So, she's very much behind this push to get more support for women in the business field.
ASHER: But Donald Trump has been, as you know, the target of women's groups across the U.S. are they likely to be receptive to this move in
their eyes in the right direction?
BENNETT: Well, look, I think, yes, ultimately. What becomes -- this group is really what Ivanka said is hopefully going to help level the playing
field. That means recruit and retain more women in business. Hep female entrepreneurs set up with capital and help women who have families and work
at the same time. So, all of those issues should resonate and might win back some of the women in America that have been isolated during that
tumultuous campaign season. So, we'll have to yet to see whether or not this embarks on Ivanka's role officially, but it is a step in that
ASHER: That was going to be my next question. Will she likely have any kind of role in type of policy, when it comes to issues of equality,
especially with women?
BENNETT: It certainly seems like it. She has a very close adviser in a woman named Dena Powell, who is working for the administration.
[16:35:00] And the two of them are quite close and advise one another on these issues. So, it looks as though Ivanka might be heading into the
administration. However, we don't have official word yet. She doesn't have a formal role. She's Instagramed herself a couple of times in the
east wing with her kids. So, we know that she actually -- she's there, at the white house, taking part in meetings, but yet to be determined what her
official title will be.
ASHER: Kate Bennett, appreciate that.
New developments I want to bring you up on Donald Trump's National Security Adviser, Michael Flynn. The President's counselor, Kellyanne Conway, says
that Flynn does enjoy the full confidence of the President. Flynn has the full confidence of the President, that's according to Kellyanne Conway. A
white house official tells CNN Flynn has apologized to the vice President about an earlier statement that he made. I want to bring in Barbara Starr,
who's live for us from Washington. So, Barbara, even if Michael Flynn has the full confidence, the full support of President Trump, what sort of
consequences will there be if it is determined that he did, indeed, break the law here?
BARBARA STARR: Well, hi, Zain. What we're talking about at this point is, I think, the very essence of President Trump personal/professional
relationship with Michael Flynn, and whether he wants Flynn to continue on the job. Look, what we know is that Donald Trump values personal loyalty.
And Mike Flynn has been very loyal to him since the early days of the campaign. So, that will be important. But if there starts to be bad
press, will Trump decide that Flynn has to go? Trump does not like to be embarrassed in public by bad reporting about his administration.
But he also doesn't want his own decision making called into question. And he was the one who decided Mike Flynn should become the national security
adviser. So, to remind everyone what this is really all about is Russia's involvement in the U.S. Presidential election. The U.S. determined, under
the last days of President Obama, that Russia was involved. President Obama put sanctions on Russia. And now we know that Mike Flynn did speak,
by all accounts, to the Russians about those sanctions. That is the general assessment of what happened, because there are intercepted
transcripts of those phone calls about all of that with the Russian ambassador. Flynn originally said he did speak to him about that.
Now that story being adjusted somewhat. Flynn is saying he spoke to the ambassador, but did not have exact recall of what they talked about. So,
all of this still being reviewed by federal authorities to see if, in fact, there's a violation of U.S. federal law. But the equally important
question is whether President Trump will decide to stick with Flynn. He may have full confidence in him at this point, but we know politics in
Washington. Full confidence doesn't mean that there isn't some pretty thin ice there, Zain?
ASHER: You can say that again. I am also curious about Michael Flynn's relationship with vice President mike pence, because as you well know,
pence had been going out and defending Michael Flynn. And then it turned out what he was saying about Flynn may have been true. What's his
relationship with mike pence right now?
STARR: Yes, that's exactly right, how irritated, if not more, is the Vice President with Michael Flynn? You know, they had a very icy handshake in
public towards the end of last week, that everyone in town noticed, as you say, supposedly, Flynn has apologized to Pence, but Mike Pence is a very
professional Washington politician. He doesn't want to be embarrassed either. And he clearly was put out there to say that this didn't happen,
when, in fact, it did. Zain? To pence, but mike pence is a very professional Washington politician. He doesn't want to be embarrassed
either. And he clearly wuss put out there to say that this didn't happen, when, in fact, it did. Zain?
ASHER: Barbara Starr, keep us updated on any new developments you hear of. Thank you so much.
The Trump administration is asking a Seattle judge to postpone any further proceedings in the challenge against the President's travel ban, while a
larger panel of judges on the ninth circuit court of appeals decides whether to re-hear the case. The U.S. government was widely expected to
make such a move, as the ban winds its way through the court. Some immigrants living within the United States feel as though they're in limbo.
A pediatrician from Syria who lives in South Dakota says he's afraid he may be forced to abandon his patients.
DR, ALAA AL NOFAL, SYRIAN PEDIATRIC ENDOCRINOLOGIST: South Dakota is considered an underserved area, where there's a shortage of physicians, so
that's why international physicians are welcome here.
UNIDENTIFIED REPORTER: It's winter in Sioux Falls, South Dakota.
AL NOFAL: I was born and raised in Damascus, Syria. I went to medical school back home in Damascus, graduated in 2008, and came to continue my
education here in the United States.
[16:40:00] CHRISTINE ROMANS, CNN MONEY REPORTER: Today, Dr. Alaa al Nofal is a pediatric endocrinologist at the castle inspired Sanford Children's
Hospital and Medical Clinic serving patients from North and South Dakota, Minnesota, Iowa, and Nebraska.
All right, young lady. So, I have patients who travel hundreds of miles to come see me. There are many patients who I travel to go see.
CINDY MORRISON, CHIEF MARKETING OFFICER, SANFORD HEALTH: We also use airplanes to get physicians out in those rural communities when the
distance is significant.
ROMANS: But there's one place al Nofal is hesitant to fly to, out of the U.S. to see relatives. President Trump's executive order bars flights from
seven countries, including Syria, to enter the United States. With that order in legal limbo, al Nofal is afraid he may be forced to leave his
patients behind if he travels abroad and can't get back into the United States. That's because he's not a U.S. citizen. He's here on a program
that allows physicians to work in underserved areas of the country.
MORRISON: He is significant to this part of the country, because he treats a lot of children who have type I diabetes. And he is one of only five
full-time pediatric endocrinologists in North Dakota and South Dakota.
AL NOFAL: Does that make sense?
Questions for me?
What they did not consider is that this executive order is not going to affect just people of the seven countries, it's going to also affect the
people in the United States. People in rural America.
ROMANS: In a comment to "CNN Money," the state department said, exceptions to the travel and visa ban could be issued on a case-by-case basis if it is
in the national interest, but they did not specify if a doctor shortage in a rural area would be considered.
AL NOFAL: That's what worries us. Because we don't know what's going to happen in a year and a half or two years from now. If things don't work
out, we might need to move outside the United States.
ALYSSA AL NOFAL, ALAA'S WIFE: For our family, it really disappoints me that this was done. Because it's teaching my son that people from these
countries are threats. I don't want him growing up thinking that people from Syria, that his family, are threats. Because they're not.
ASHER: That was CNN Money's Christine Romans reporting for you there.
Donald Trump says U.S. infrastructure needs a major upgrade. In just a minute, we'll be live from California as cracks appear near the tallest dam
in the country. That story next.
[16:45:00] (COMMERCIAL BREAK)
ASHER: U.S. officials say mandatory evacuations remain in place near Lake Oroville, California, after runoff channels designed to present a
disastrous flood were found to be crumbling. People have been evacuated downriver from Oroville dam because water is close to overflowing from the
lake behind the dam. Residents describe the scenes as pure chaos. Paul Vercammen joins me live from Oroville, California. So how far are
authorities away from fixing the hole in this spillway?
PAUL VERCAMMEN, CNN REPORTER: Well, there's a two-pronged effort right now. They're working on that hole and they're going to try to dump in
cement or rocks, I should say, in bags. That is going on right now. Let's look at the other big bit of progress they're making, Zain. I can get
right to this and show you directly. If you can see in the distance, water is cascading out of the down, down into the feather river, and you can see,
those are just huge plumes. They say now, leaving this dam is 100,000 cubic feet of water per second. That is much more than is flowing into the
dam from runoff and all of the snow.
And so, it's almost as if this evacuated collective community is looking over here at the water level in the damn, crossing their fingers, and just
hoping that level drops. And it is. It's been dropping about 4 inches every hour. It may not seem like much, but that's the goal here, to get
this reduced to a level of about 50 feet below the spill level, and that way, Zain, they will have room for any other runoff or any snow melt or
whatever the case may be, because they are predicting more storms to hit here in the Oroville area later on this week.
ASHER: Those images behind you, just incredibly striking. I am curious, though, obviously, the blame game is being played. Who is the finger being
pointed at right now, Paul?
VERCAMMEN: Well, that's a really interesting question, because some had said that they sent up a flair, including the Sierra Club, 12 years ago,
saying, when you saw that behind me, that was an earthen spillway, they said, there should be more concrete in there. Others would say, they were
absolutely blasted by mother nature. Who could have predicted this extremely heavy rain that came into California and all of the snow? Don't
forget, it was two years ago when people were walking this lakebed and showing is it as a very symbol of the horrific drought that had ravaged
California. So, what a difference two years makes, Zain.
ASHER: All right. Paul Vercammen live for us. Thank you so much for being with us and sharing that story with us. Thank you.
I don't make songs for free, I make them for freedom. That's a lyric from Chance the Rapper's Grammy award-winning album. The hip hop artist is
making history and threatening to turn the music business inside out. That story, next.
[16:50:00] ASHER: History was made last night at the Grammys in Los Angeles, in a way that could actually signal a major change for the entire
music industry, when chance is rapper, there he is, when he bagged three awards, he became the first artist to win for music that was only, only
distributed, by streaming, entirely without any physical sales whatsoever. So, this man right here, he is making history. He's just 23 years old and
his "mix tape," the album, was released for free last summer without the backing of a major music label. It is a new era for the Grammys, which
changed its rule against streaming to allow artists like chance to compete. With blending rapid-fire lyrics over jazz and gospel, chance has now found
mainstream success. And he says in the song "Angels" he's got the industry in disbelief.
And according to Chance, even Barack Obama has actually been encouraging him to start selling his music for profit, based on what he said Sunday
night, it doesn't sound like he's giving up independence anytime soon.
(BEGIN VIDEO CLIP)
CHANCE THE RAPPER, GRAMMY WINNER: I want to thank god for my team. I know people think that independence means you do it by yourself, but
independence means freedom. I do it with these folks right here.
(END VIDEO CLIP)
ASHER: Let's talk more about this. Jem is a senior editor at billboard and joins me live now from Los Angeles. So here you have this 23-year-old
kid, the first rapper to win a Grammy who is not signed by a label, who's giving away his music for absolutely free. How could this kid end up
changing the way the music industry operates?
JEM ASWAD, SENIOR EDITOR, BILLBOARD: Well, Chance is the rare performer who can do that. He has other ways of making income, and I don't think
he's ever made any money from his -- directly from the recording of his music, right? He makes it from streaming, sure, but he's never made it
from sales. And mix tapes are free. That's the way he did it before. He makes it for branding deals and sponsors to help him do what he wants to
do. He put on a festival in Chicago last year that was paid for, in partnership with a sponsor.
ASHER: So, what could other people watching at home, other people who have dreams and aspirations of one day winning a Grammy and breaking into the
music industry, which as we both know is very hard to do, what can they learn from his success, do you think?
ASWAD: That you don't have to take the traditional route. You can do it yourself, if you've -- if you're -- not even if you're good enough. If you
can get enough people listening and enough people caring about what you're doing, the rest will take care of itself. But it's rare that that happens.
And you have to be a certain kind of artist, right? If you were going to be a big pop singer, like Adele or something like that, it would be much,
much, much harder to do it in that way. Because that relies more on their traditional music business of radio and traditional publicity and all of
ASHER: But I don't get, just watching him, he is so successful. He won three awards last night, I don't get, what would be the downside at this
point in just signing with a record label? I think there probably wouldn't be a downside. There probably wouldn't be. But he's really built
something and he's obviously very proud of it. And in a way, it's sort of like an ultimate end result, in a way. For some of the things that prince
was trying to do. He was very much about ownership and independence and not being, you know, as prince put it, a slave to a major corporation.
People are coming to chance. People are coming to frank ocean. Those are probably the two biggest fully independent artists in the business right
now. And it's changing the game.
There are a lot of people that I know who have not heard of Chance the rapper and people who, even if they had heard of him, they don't really
know his music. Doesn't marketing matter?
ASWAD: It does, but he doesn't seem to care, you know? I mean, I think he just seems pleased and proud of himself and confident, but he's just going
to do his thing. And people are following along with it. And they're inspired by that confidence. And, you know, it's been Grammy weekend.
I've been talking to other artists, and they're in awe of him. I spoke with Maxwell, when I was interviewing him the other night and he signaled
out chance the rapper as someone who's changing things and making things much more artist friendly. There is a downside to that, in seeing that he
doesn't care about getting paid for physical product. Not everyone is in a position like that. In fact, most aren't. But the fact that it can be
done is, again, changing the game.
ASHER: The fact is, he beat out -- for those awards, he beat out artists who were heavily marketed. How did he do that? What was his secret?
[16:55:00] ASWAD: People love the album. And people are impressed with him. You know, the Grammys have really updated their membership over the
last 10, 15, 20 years. And you've got a lot of -- it's a more diverse audience, so that counts for a lot. But also, there were people who were
impressed with that. And there are people who are tired of the old way of doing things, which still works sometimes, and often, usually, still works.
But it's just, it's a great thing. It's an employee against the empire.
ASHER: Thank you so much. That's "quest means business." I'm Zain Asher in New York. Thanks so much for watching. Richard will be back tomorrow.