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QUEST MEANS BUSINESS
Former South Korean President Arrested; Banks Eye Up Foreign Shores After Brexit; Swedish Finance Minister Calls for "Rational" Brexit Talks; Lloyd's Of London To Set Up Subsidiary in Brussels; Ivanka Trump to Have Official WH Role. Aired 4-5p ET
Aired March 30, 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] RICHARD QUEST, CNN ANCHOR: The stocks have done rather well, risen sharply in recent months. And now ringing the closing bell on the
day that's seen the Dow Jones rise 60 odd points. Hit the gavel. There we go. One, two, three. Solid gavels. I think that what we'll today, solid
gavels bring trading to a close on Thursday, it's the 30th of March.
Tonight, South Korea's corruption scandal broke. The former South Korean president is under arrest and we'll be in Seoul in a moment or two.
Banks based in London are reaching for their passports. I'll speak to Lloyd's of London, the chief executive about her company's plans and
And Sweden's Finance Minister tells me tonight, Europe's Brexit talks will need grownups in the room. I'm Richard Quest live in London, where of
course I mean business.
Good evening. We begin tonight with breaking news from South Korea. Where the ousted President Park Geun-hye has been arrested. The judge who issued
the arrest warrant said there was a concern that the former president might try to destroy evidence. Park was already being held ahead of the court's
decision. Prosecutors accuse her of abusing presidential powers, taking bribes from companies and leaking confidential information.
CNN's Paula Hancocks, our South Korea correspondent is in Seoul for us tonight. Just remind us, before this latest development, Paula, what was
Park's position? She was out of office. She's been impeached. Was she under arrest? What was your position before tonight?
PAULA HANCOCKS, CNN CORRESPONDENT: Richard, she was basically at a hearing where she had to plead before the judge and explain why she should not be
arrested. Prosecutors had sought an arrest warrant for her earlier in the week, and then all day today or yesterday, now it's 5:00 in the morning,
she was pleading her case. So, she was impeached. The constitutional court had upheld that impeachment so she lost all presidential immunity.
But she was free until they decided this arrest warrant should take place.
What we've heard from the judge today is that he said major crimes have been ascertained. As you say, he believed there was a fear that she could
destroy evidence, which is one of the main reasons why a judge would agree with an arrest warrant, or the fact that someone could be a flight risk.
Also, saying that the court recognizes the need and necessity for the suspect to be arrested. So right now, she is in Seoul detention center,
just outside Seoul, Richard.
QUEST: This was the fear, that she might be arrested. As I recall, that fear was about not so much destruction of evidence but actually to be
arrested for charges of misfeasance for what she actually did in office. But this is something different.
HANCOCKS: That's right. This is one step higher. This is the prosecutor saying that she has to be arrested immediately because they believe she
will destroy evidence, and then while she's in detention, while she's arrested, then they will bring these charges against her. And the judge
has agreed in this case. So, it's one step higher. We know that prosecutors have been mentioning charges of abuse of power, of bribery, of
leaking classified information. So, they've given us an indication of the direction they're going. And we're expecting within the next 20 days that
they will charge Park Geun-hye.
This is what they have, they have 20 days, and then they either have to renew that or release her. But we're expecting within the next few weeks
we could see charges against her. But of course, remember, we're also going to be seeing a presidential election in this country on May the 9th,
so there are some experts who are speculating whether or not the prosecutors will want to wait until after that election. They won't want
to be seen to be politically biased in any way. So potentially this could hang on until after the election.
QUEST: All right, Paula Hancocks, please let us know when there is more to report. Obviously, a stunning development tonight, that the former
impeached president is now in custody, potentially to be charged with destruction of evidence or at least the worry is that there could be the
destruction of evidence.
As Britain prepares for its future outside the European Union, the EU is planning for its future without the U.K. At a meeting in Malta, European
leaders said they were determined to move on and tackle the challenges of economic recovery and nationalism. The EU council's president Donald Tusk
called on the remaining 27 member states to unite.
(BEGIN VIDEO CLIP)
[16:05:00] DONALD TUSK, EU COUNCIL PRESIDENT: Proclaiming the end of history, proclaiming the ultimate triumph of liberal democracy, peace, and
international order, have turned out to be, to put it mildly, exaggerated. For rational and responsible patriots who want to maintain sovereignty and
independence of their nations and states, there is no alternative to a united and sovereign Europe.
(END VIDEO CLIP)
QUEST: Erin McLaughlin is in Malta for us tonight. Erin, they are talking unity, and they always talk unity at a moment of crisis. So, I'm guessing
that they will stay united for the time being.
ERIN MCLAUGHLIN, CNN CORRESPONDENT: That certainly is the hope, Richard. You know, when Brexit first happened, there was a real concern, that was
the end of the European project, that it was lights out, that such a prominent and strong EU member state should decide to leave the European
Union by popular vote. Now fast forward, months later. EU officials are saying that's not the case, this scenario is far from apocalyptic.
However, there still are persistent threats of nationalism and populism.
And one senior EU official telling me the hope is going forward that the EU will be able to position itself as sort of an island, he said, in a sea of
insanity, as a bastion for liberal democracy. And the hope is that that soft power will be what sees the EU through the crisis. He said don't
expect the populace to just win outright.
QUEST: All right. But here's the problem. How much of that unity is real and how much of it is manufactured on the basis of the back of Brexit? If
you are to take the EU 27, and the question, for example, of a two-speed Europe, or, for example, of the increased budgetary contributions as a
result of Britain leaving, how likely is that unity to fray?
MCLAUGHLIN: Well, that is, Richard, the million-dollar question. And we're really going to have to see how this plays out in the months going
forward. Right now, what EU officials behind the scenes are telling me is that they're seeing messages of unity across the remaining 27 EU member
states. Will that persist? That is the question. EU leaders acknowledge that reforms are need. They're looking at how to shape the EU going
forward. They realize the status quo cannot persist when it comes to the European project.
QUEST: It's interesting, John Claude Juncker making a comment about Donald Trump, where he basically said stop trying to suggest Brexit is going to
spread. But he did it in a very strange way.
MCLAUGHLIN: EU leaders, we're hearing, are becoming more and more vocal about what they've been hearing from the Trump administration. After all,
President Trump has been vocal himself, openly praising Brexit, comparing the popular vote that saw Brexit to his own electoral victory. Let's take
a listen to what the president of the European Commission had to say today.
(END VIDEO CLIP)
JOHN CLAUDE JUNCKER, EUROPEAN COMMISSION PRESIDENT (through translator): Brexit is not the end. There are many who would find it wonderful if it
were the case. Also on another continent, where a newly-elected president was delighted that Britain was leaving the European Union, and has also
encourages other countries to do the same, if it continues in that way, I would encourage Ohio's independence and the exit of Texas from the United
States of America.
(END VIDEO CLIP)
MCLAUGHLIN: That statement really is not playing well, perhaps no surprise among Trump supporters. Nigel Farage one of the architects of the Brexit
campaign tweeting out saying, "Juncker has made a complete fool of himself again. The USA was formed by consent while the EU is being imposed." No
response from President Trump just yet, Richard.
QUEST: Erin McLaughlin from Malta at the summit, thank you.
Britain has two years to leave the European Union. London's financial institutions aren't waiting for the details to be worked out. They are in
many cases, we're getting the evidence now, planning for a hard Brexit and relocation in the process. At risk is the so-called passporting rights.
The passport grants them access to EU markets on an equal basis. Now, Citigroup today has warned employees, some jobs may move out of the U.K.
[16:10:00] As the banks wonder where to go, the cities are making their pitches. The postcard from Dublin, which has an English-speaking
workforce, and similar laws to the U.K. JPMorgan is reportedly in talks for a new office in Dublin but won't comment or confirm.
Then of course Brussels. The center for European politics. Very unlikely to leave the EU. That's why the insurance fund Lloyd's of London is
setting up a subsidiary there. The chief executive said the future for Paris is more uncertain. The French capital has touted its own culture
even as Marine Le Pen pushes a message of nationalism.
And then, Frankfurt, home of the ECB. It's expecting up to 10,000 new financial jobs as a result of Brexit. So already the change is starting to
happen. And within the hour, the Lloyd's of London chief executive, Inga Beale will be joining me here in London to talk about the decision to move
or at least to split part of the insurance market off to Brussels. Germany's foreign minister is warning Britain won't get an easy ride from
the rest of Europe. Sigmar Gabriel says he expects formal negotiations to begin in around late May and they won't be straightforward.
(BEGIN VIDEO CLIP)
SIGMAR GABRIEL, GERMAN FOREIGN MINISTER (through translator): For the German government, it is clear that the most important condition for the
negotiations on Britain leaving the EU is safeguarding the interests of the citizens of the remaining 27 member states. The unity and the economic,
social, and political interests of the member states as well as of the European Union institutions. In all these areas, there can be no special
deal for Britain.
(END VIDEO CLIP)
QUEST: No special deal. And yet that's exactly what the British Prime Minister Theresa May asked for when she sent her letter to Donald Tusk.
So, it's really very straightforward. Can there be a trade agreement before Britain leaves? Sweden's finance minister says the U.K. must
finalize the divorce before talks about trade can begin. There's only two years to do it all. So, I asked Magdalena Andersson who joined me from
Stockholm if there was a new sense of urgency on both sides.
MAGDALENA ANDERSSON, SWEDISH FINANCE MINISTER: Yes, it's true. The time schedule is very tight. And I think the quicker we can begin and the more
force we can do these negotiations, the better. But I think it's better to start with a divorce before and then afterwards we start with the trade,
the talks about the future trade agreement that we will have to have. I think it's good for both of us that we can sort this out as soon as
possible. I think that's another good starting point for these discussions.
QUEST: So, in your statement, you say in the future relationship between the EU and the U.K., we want trade relations to be as favorable as
possible. And whether that's negotiated simultaneously or contemporaneously with the divorce, are you in favor ultimately of a free
trade agreement between the U.K. and the EU 27?
ANDERSSON: Of course, we want to have a good free trade agreement. And to have good conditions. I think that's in the interests of the European
Union but also Great Britain. Great Britain is important export market for Swedish companies but also other European companies. The European Union is
an even more important export market for British companies. So, I think having a free trade agreement is in the interests of both partners here.
But at the same time, we have to say, it will be more complicated for companies to trade. The administrative burden will increase when the U.K.
leaves the customs union. So, it will be more complicated, it will be more expensive, and it will hurt their economy. Now the discussion is how will
we do damage control to make it hurt as less as possible.
QUEST: As these talks get under way, how do you prevent bad feeling, ill will, and a wish to have a deterrent effect influencing these talks?
ANDERSSON: Yes, I think most of us know some people that have been divorced. And we know that there's often a lot of feeling during divorces.
And you can -- but the thing is we really have to not let our feelings run away with ourselves during this process. There will be a need to have a
lot of grownups in the room and we can act in a rational way. I think this will be very important. But it's also in the interest of both partners.
That would be very important. Lots of grownups in the room.
QUEST: Finally, minister, the question of EU citizens and British citizens. This one really can be solved quite quickly, can't it, almost on
day one, both sides just simple have to say, yep, yours that are here can stay and ours that are there can stay, end of subject. Do you agree that's
the way forward?
ANDERSSON: I think it will be more complicated. This will be part of the negotiations, but of course it's in the interest of both of us that this
will be solved in a good way. For me, there are 100,000 Swedish citizens living in the U.K.
[16:15:00] Of course, there needs to be a solution. I'm not certain it will be day one.
QUEST: Here is the problem. The British are coming under some criticism for perhaps using the citizens issue as a bargaining chip. But what you
have just said is basically the same thing. Both sides are, let's be blunt about this, minister, both sides are prepared to use the citizenship
question as a bargaining chip, because after all, this is a negotiation.
ANDERSSON: I wouldn't call it a bargaining chip. But of course, there are several parts of these negotiations, where we could have good conditions
for our citizens and solving their problems would be one part of it. We see in Sweden that lots of people from Great Britain that live-in Sweden,
they are applying for citizenship. We're looking forward to having more Swedish-British citizens in Sweden.
QUEST: That's the finance minister of Sweden talking to me earlier today from Stockholm. Investors in Europe are mostly ignoring the uncertainty of
a Brexit. Stocks rose for a third straight day in Frankfurt, Paris, and Zurich. If you look at BMW shares their round 1 percent higher. And a BMW
board member told us he's not worried about Brexit.
(BEGIN VIDEO CLIP)
IAN ROBERTSON, BMW BOARD MEMBER: Nothing is changing what we want, how it's delivered in the next two years I think we'll have to wait and see.
I'm an optimist. My work is in sales and marketing. I hope, I trust, I think there are solutions to all of these things.
(END VIDEO CLIP)
QUEST: Consumers in America have gone on a shopping fever spree. And it all follows the federal reserve of San Francisco, which is talking about a
goldilocks economy and discussing what it means for the Trump administration and its ambitious targets after the break. It's QUEST MEANS
BUSINESS, we're in London.
QUEST: Growth in the United States got a nice little bump higher in the last quarter. And now the challenge is for Donald Trump to double it.
Look at the numbers. Remember, it's Q4 growth. It was 1.9 percent. And it was revised upwards. I think this is the final revision, so it's a 2.1
percent. You get the initial, the first revision, and then the final.
Donald Trump says his target is 4 percent. But that's not been seen since the early 2000s, and even then, it was only for a very short period of time
in some extremely unusual circumstances. The head of the San Francisco Fed has been celebrating over the lasting few days, saying we've largely
attained a hard-sought recovery that we've been seeking for the past nine years. According to the Fed president or at least the San Francisco Fed
president, it's a case of job done and now it's about sustainable recovery, not reaching recovery. All of which gave a boost to all three.
[16:20:00] The Dow Jones industrials is up 69 points, over 20,700 once again. It's a third of a percent up. And the NASDAQ, produces a new
record, putting on a third of a percent. Paul La Monica joins me now. This is downright fickle, isn't it? The markets just cannot decide. Every
time we get a bit of a worry over Trump's agenda, they don't fall out of bed. But there's a definite case of the collie wobbles.
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: Yes, I think investors are clearly growing a little bit more concerned that everything they bought
into in regards to Trump's promises may not be achievable anytime soon. We saw that obviously, with health care reform. Most people I speak to think
that tax reform is doable at some point within the next few months perhaps and that's why they're remaining optimistic. And with regards to oil,
which you pointed out, look at oil prices, they shot up today. That is why Exxon was one of the winners on the Dow. JPMorgan Chase, other banks, also
rallying. There still is this hope that we'll get unwinding of some of those Dodd/Frank laws.
QUEST: OK, but even for all of this, you have got 2.1 percent growth. It's a bit lower than par. You've got unemployment down at 4.5, 4.6
percent. The Fed pretty much is now just about calling it the goldilocks economy, not too hot, and not too cool. It's difficult to know how the
fiscal policies still to come will factor in.
LA MONICA: Definitely. And I think almost everyone believes that 4 percent is not going to happen. That is a bit fantastical, I think, of Mr.
Trump, to be suggesting that we could get to those levels. Richard, if we get to 3 percent, which might be doable if you have a combination of lower
taxes, unwinding some of the Dodd/Frank laws, and then an actual stimulus plan with infrastructure spending, 3 percent is a victory. He is not going
to be criticized by many American people for only getting to 3 percent because that's likely to be accompanied by even more job growth and more
wage gains. And that's what we all want.
QUEST: Paul La Monica in New York, the guru La Monica, thank you, sir.
LA MONICA: Thank you.
QUEST: See you back in New York next week when I'm there.
A new report from the U.S. State Department shows fewer and fewer Americans are actually seeking unemployment assistance. It appears that the job
market is improving. Unprecedented job destruction could lie just around the corner. A warning from billionaire Jeff Greene who says the impact
that globalization had on blue collars workers for 30 to 40 years, artificial intelligence, machine learning, robotics, will do the same for
the white-collar workforce, and it will do it in a fraction of the time. Just 5 to 10 years. Jeff Greene founded the Greene Institute which holds a
conference on the topic if you days' time. Jeff joins us from Palm Beach, Florida, and we are very pleased, sir, to have you on QUEST MEANS BUSINESS.
JEFF GREENE, FOUNDER, GREENE INSTITUTE: Thank you, Richard.
QUEST: At the end of the day, time and again over the last few months I've heard people alluding, suggesting, warning that it's really AI, it's really
robotics, it's automation that is going to take the jobs. But nobody is sounding a clarion warning, sir.
GREENE: Well, I am, Richard. I think that, you know, both parties are ignoring what is really in my view the issue of our time. Just this week,
Price Waterhouse came out with a report that clearly laid out how 38 percent of all jobs in America will be automated and eliminated in the next
15 years. If that isn't a wake-up call, what will be?
QUEST: But what's your solution? And maybe you haven't got one. Maybe your idea is the dialogue has to begin to actually find a solution.
GREENE: Well, you hit it on the head. No one's talking about it. If anybody is interested in this, they can go to
www.managingthedestruction.com. We'll see what we're talking about on Monday. We're bringing in Tom Friedman, Ray Kurzweil, the futurist, Arnie
Duncan, the former education Secretary. Larry Summers, even David Cameron is coming over from the U.K. to talk about the Brexit and how some of the
Brexit result was the result of this problem.
Look, I mean, what's happening in the world is, job destruction is already happening. Everyone looks at Uber. If you're a taxi driver in New York
City, five years ago, you probably thought not only do you have a steady income for the rest of your life as long as you want to hop in that yellow
cab, but that medallion is security for you and your child and grandchildren to make a living. Now what's happened Uber comes along and
that guy's income is down and he feels uneasy, as he should.
We may have driverless cars and eliminate millions of jobs just from that in this country.
[16:25:00] QUEST: When the president says he's going to bring jobs back, and we get a few thousand here and a few thousand there coming back from
car companies or Carrier or whatever, is the president missing the point here? Has he got the wrong focus?
GREENE: 100 percent the wrong focus. Of course, it is. I've tried to reach out to Donald Trump. I live here in Palm Beach. I live very close
to the president. I've tried to reach out to him on this many times. We haven't really gotten together, which is unfortunate. Steve Mnuchin as
Treasure Secretary just this week said that is not going to be AI won't be a problem for 50 to 100 years.
This is ridiculous. We have to get focused and understand. We're heading into a period of unprecedented job destruction, where the greatest
destruction to our economy since the depression, and we have to understand it's happening, start talking about it and come up with real solutions.
The fact of the matter is we're still the biggest economy in the world, we have the best universities in the world. Everyone wants to come here.
Let's take our positives and focus on this problem and get it addressed.
QUEST: Well, some say of course that some nation has to do the value-added work of building the robots, developing the software for the AI. And I
understand that will not replace Parry Pursue, the jobs that will be lost. But there will be people watching tonight who will say, well that Jeff
Greene, a downright alarmist.
GREENE: Well, look. I mean, the reality is, in a middle-class economy, most people do routine jobs. Manufacturing, when I was a kid, it would be
putting things in boxes or if you're in an office, entering data, typing letters, interesting data on papers. Those jobs right now are better done
by the machines. The reality is most people are average. That's why the average person has a 100 IQ. If artificial intelligence is operating at
120 IQ, which it will be soon, people will not be able to compete with these machines for most of the work they've had traditionally in a middle-
QUEST: It just makes me what's going to happen to my own job here. Jeff, thank you, sir. Really appreciate it. If you do get to speak to the
president, maybe go knock on the door at Mar-a-Lago next door. If you do come back and tell us what he said. We look forward to having you on the
GREENE: I'm a member of Mar-a-Lago. I had dinner there a few weeks ago. I was lucky enough to be seated at the next table to the President. But we
weren't able to get into this subject. You can be sure next time I get his ear, I will definitely remind him this is the issue of our time.
QUEST: You mean you had the chance and you didn't take it!
GREENE: Well, you know what, you have a limited amount of time, with the President of the United States. Basically, we just wanted to exchange
greetings. Then he had to get on with his dinner.
QUEST: Excellent, sir. Next time, come back and tell us what he said about AI. I appreciate it. Jeff Greene at Mar-a-Lago.
Britain is leaving the EU. Lloyd's of London is moving into the EU. The chief executive explains why she picks Brussels, she's with us after the
break. This is QUEST MEANS BUSINESS.
[16:30:00] (COMMERCIAL BREAK]
QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. I'll be joined by the chief executive of Lloyd's of London.
By now, U.S. lawmakers want to make it easier to sell on your internet browsing history.
And as we move on, before any of it, this is CNN, and on this network, the news always comes first.
The former South Korean leader Park Geun-Hye has been arrested on corruption charges. A judge approved a warrant for her arrest early Friday
saying there was concern the impeached president might destroy evidence. Park was removed this month as the corruption scandal worsened.
Russian president Vladimir Putin is strenuously denying that Russia tried to interfere in the U.S. presidential election. He called the allegations
fictional, illusory, and lies. He says it's not in American interests to push relations to the point of absurdity.
In Ankara, the new secretary of state says America and turkey will work together to build stability in the region, on the eve of a massive push
against is in Raqqa, Syria.
Now, you would expect the world's largest insurance market, Lloyd's, to be prudent against any risks that the actual market itself may be facing.
Indeed, that's exactly what it's doing, taking out its own insurance against Brexit. It's been a British institution for more than three
centuries. Now it's announced plans to set up a subsidiary in Brussels, a day after the pm began the formal process of removing the U.K. from the EU.
The chief executive of Lloyd's joins me now. We talked in Davos. We said we would do this but you wouldn't tell me the country you were going to do
it. Now we know it's Belgium and Brussels. Why?
INGA BEALE, CEO, LLOYD'S OF LONDON: We didn't tell you at the time because we had to deliberate very carefully. Lots of criteria we need to consider.
We wanted to take our time and be very professional about it. Now, we chose Brussels. It's got a very, very strong and quality regulatory
environment. For Lloyd's, our reputation is paramount. We've been doing business for hundreds of years. We're one of the world's best known
insurance brands. It's so important we go somewhere with an excellent reputation. We also need to hire some people. So, we wanted access to
multilingual, high caliber talent. And we had to consider ease of access. We'll have to be traveling from London, we'll need continental European
clients. We wanted to choose somewhere in excellent location and in the heart of Europe. And importantly, one more factor, we wanted to choose
somewhere that was a high likelihood of remaining in the EU.
QUEST: It's fascinating that that was a factor. At the end of the day, the whole thing depends on Belgium and Brussels being in the EU.
BEALE: We need to be in the EU to keep insuring EU customers.
QUEST: How much business goes to the Brussels subsidiary? Will all European business go into it?
BEALE: It's more complex than that. About 5 percent of our global business is European or EU business. We will lose the right to issue
policies for post-Brexit. That's simple insurance business. Some of the more complex insurance in the EU, marine business, aviation business, the
reinsurance business that we write, that we'll be able to continue to write from London. So, another 6 percent of EU business we'll write in London.
5 percent we'll have to write through this EU subsidiary.
QUEST: This is going to be -- I mean, it's necessary, you don't really have any choice in doing this. But it's going to be costly for you, isn't
[16:35:00] BEALE: It's going to add some cost. Of course, we're providing this subsidiary for the whole of the Lloyd's market. We have 84 businesses
writing insurance in Lloyd's. If you spread it across the whole market, it's minimal cost. It will add .1 percent of our premiums.
QUEST: How big is Lloyd's vis-a-vis the global insurance industry? As you said before we came on air, you do the bit that nobody wants to touch, the
risky business. How big is Lloyd's?
BEALE: We write about 30 billion pounds of revenues, of premiums. We're in the top five reinsurers in the world. Which means we're insuring
insurance companies. We are a major, major player in the specialist insurance lines for things like the heart of Lloyd's, where we started
insuring ships and cargos around the world, we're the leading writer of that kind of business. We will have as much as a 50 percent global market
share. New products like cyber insurance, which is on the rise, we have a 25 percent global market share of that business.
QUEST: This question of cyber insurance and the writing of cyber insurance, it's a risk, isn't it? You're really taking your own risk when
you write that. Because we really don't know the full range of potential risk with cyber.
BEALE: We don't. That is what Lloyd's has always been about. Just think, when that first satellite went up into space, we didn't know what the risks
were. When the first airplane went up. We take on risks that others can't take on.
QUEST: What about the risk of Brexit from other companies? Is there an insurable risk that you can take out against Brexit?
BEALE: We haven't yet issued a Brexit policy.
QUEST: You're looking at it, I can tell.
BEALE: What we do see is an increased rise in political instability in the world. We're seeing a huge increase in demand for things like specialist
insurance related to political instability, the chances that a government may take action and stop payments being made. We see a huge demand for
insurance against that sort of thing. So not just Brexit but sort of the political instability in the whole world. And tragically, of course, the
rise in terrorism means that more people are buying terrorism insurance from us. So, what's where we come into our -- I suppose our real strength,
is when things are looking bad for business, we can help protect them and mitigate against those.
QUEST: Finally, you're talking about terrorism, political risk. I know last year was a bad year for you with wildfires in Canada. You also had a
couple of hurricanes. You really do get the nasty stuff.
BEALE: There's almost every headline in the world, there's something -- Lloyd's will be behind it somewhere, protecting businesses.
QUEST: And the solidness of Lloyd's balance sheet now is --
BEALE: Stronger than ever. We've got financial net resources getting on to 30 billion pounds. $36 billion.
QUEST: Good to see you. Thank you so much.
BEALE: Thank you.
QUEST: Nice to have you coming in. Thank you very much.
Ivanka Trump is getting an official job at the White House and she won't be paid a dime for it. We're talking about the first daughter and what she'll
be doing for her father, the president.
[16:40:00] (COMMERCIAL BREAK)
QUEST: Trump's surrogates say this unprecedented position is not about nepotism. Neither family member is being paid for their work. The former
White House ethics czar under president Obama says Mr. Trump is trying to act like a king.
(BEGIN VIDEO CLIP)
NORMAN EISEN, FMR. ETHICS LAWYER TO PRESIDENT OBAMA: Do we really want a country that is run like a monarchy where you have the throne flanked by
family members? Or do we want people in the oval office whose first loyalty will be to the country, not to the man sitting behind the desk?
(END VIDEO CLIP)
QUEST: Jeremy Diamond is at the White House for us tonight. Look, to anybody watching at home tonight, just how extraordinary is this? Bearing
in mind that Hillary Clinton certainly did the ill-fated health care plan for her husband bill Clinton, and one bush son helped another bush father
campaign. So how different is this?
JEREMY DIAMOND, CNN WHITE HOUSE REPORTER: Well, Yes, you're right, first ladies have until the past had pretty significant policy portfolios at the
White House. But we haven't seen an adult first daughter or first son in the White House for quite a long time. And so, it is relatively
unprecedented. But of course, this is how president Donald Trump has operated for decades in his business and how he's now operating as
president. And during the campaign as well, Ivanka Trump had a very significant role. She has now become a government employee. She's been
named assistant to the president. But this is really nearly a formality. Ivanka Trump in the last month has gotten a west wing office. She's begun
to get a security clearance. And she really has taken on a much more prominent role. She's been present for the meeting between chancellor
Angela Merkel of Germany and the president.
And so, that more public role has prompted a lot of ethics experts to call on the White House to decide, is Ivanka Trump a government employee or is
she not? So now Ivanka Trump taking this additional step to become an official government employee even though she won't be taking a salary. She
was hoping to allay some of those concerns. It hasn't exactly stopped some folks, as you heard earlier from Norm Eisen, complaining that this is a
violation of the anti-nepotism clause. We know Jared Kushner, the president's son-in-law, already in office as a government employee, also
not taking a salary. The White House essentially arguing because they're in the executive branch and not taking a salary, they're exempt from that
QUEST: Jeremy, let's put aside the ethics questions for one moment. Is anybody actually asking what qualifies Kushner or Ivanka Trump to hold such
senior posts, bearing in mind that people work their entire lives and study, whether it's politics, diplomacy, or government, what qualifies them
to have that job other than they're part of the president's family?
DIAMOND: That is certainly a question that folks have asked. Listen, Jared Kushner, for example, has run his real estate company that he
inherited from his father at a very young age. He's run that company for over ten years, I believe. So, that is one of his qualifications. Ivanka
in her own right has continued to work at her father's company, a multibillion dollar company, and also working on her own brand. But of
course, those questions persist, as to how they are qualified to then take those experiences and bring them to the government. But as we've learned
with this White House, what really matters to the president is who he can trust and who is loyal to him. And those two certainly are.
[16:45:00] And they've taken a pretty broad portfolio in the administration already.
QUEST: Jeremy Diamond, thank you for that, at the White House tonight. When you're watching QUEST MEANS BUSINESS, you might be browsing the
internet during the breaks. I trust you're not browsing while we're talking to each other. If you're in America, the government could soon
allow your browsing history to be put up for sale. Then again you may have nothing to hide. We'll be hiding that after you've enjoyed India 20 Under
40. (BEGIN VIDEOTAPE)
PRANAY JIVRAJIKA, FOUNDER, OLA: About three years back, getting a cab on demand in 15 minutes was a wild experience. Today, if you see an average
time of arrival, more than five minutes, you actually switch to another car and see what is available in two minutes. There's a lot of change that is
happened over the last couple of years. I'm 29 years old. I'm the founding partner at the most popular and largest mobile app in India which
helps users to get the nearest cab. There are a lot of cabs, and a lot of users who are looking for these cabs. But there was no way to discover
Ola created this platform where users can locate nearby cabs. I remember one of the greatest moments that we cherish, since then the zeroes keep
adding. The biggest challenges that we foresee, there are also great opportunities, how do we penetrate into deep India, rural India, where
mobility is a need but there is no smartphone penetration, there is no internet. We are still scratching the surface for what the potential lies
in the ride sharing market. There are more than 300 million rides that happen in India every day. As an industry, we're are less than 2 percent
of the 300 million today.
What motivates me is that fact that we have half a million drivers, roughly more than two million lives are being touched every day using this
QUEST: All right. So how would you like your internet browsing to be made public? Absolutely not. The former head of the federal communications
commission says it's a tragedy that the U.S. Congress has voted to roll back online privacy rules that protect users' data. Now, the privacy vote,
the protections were agreed in the final days of the Obama administration, really in the dying days of it. And they were the protections that
basically said that internet providers or ISP could not sell your data. The former chairman of the FCC tells CNN that U.S. consumers have a lack of
[16:50:00] (BEGIN VIDEO CLIP)
THOMAS WHEELER, FORMER CHAIRMAN, FCC: Two-thirds of homes in America have one choice when it comes to how they get their internet access, their high-
speed internet access. And so, I haven't got any choice. If I don't like the fact that my internet service provider is now going to be allowed to
sell my information, I don't have anybody else to go to. And so, I'm stuck.
(END VIDEO CLIP)
QUEST: Right now, the rules affect the internet service providers. Such as Verizon, AT&T, and Comcast. They have data on your web browsing
history, on app usage, geolocations. They're on this side of the equation. But the rules do not apply to web companies like Facebook and google who
similarly will have information on your web browsing. And that was the issue. Whether or not to extend the rules from this side to encompass them
all or, as they decided, not to have them at all. Twitter's general counsel warns it's time to start using VPN, a virtual private network at
home. Stephen Colbert, host of "The Late Show," says all Americans have reason to feel umbrage.
(BEGIN VIDEO CLIP)
STEPHEN COLBERT, HOST OF "THE LATE SHOW": This is what's wrong with Washington, DC. Here is the deal. I guarantee you, there is not one
person, not one voter of any political stripe anywhere in America who asked for this. No one. No one in America stood up at a town hall and said,
sir, I demand you let somebody else make money off my shameful desires.
(END VIDEO CLIP)
QUEST: Shameful desires indeed. Clare Sebastian is in New York. Who is getting hot under the collar about this?
CLARE SEBASTIAN, CNN CORRESPONDENT: Richard, in Washington it pretty much cuts down party lines. Republicans have largely voted for this law which
disapproves of those privacy rules. And Democrats, we see privacy advocates coming out saying this is dangerous for consumers and puts your
data, which should belong to you, in the hands of big companies. The White House and the FCC say this is about fairness. As you pointed out, why
should big ISPs like Verizon and Comcast and AT&T be hamstrung in how they use consumer data when companies like Facebook and google are not. But for
consumers, this is extremely worrying. These advocates and some lawyers that I've spoken to have said that they believe ISPs have access to a lot
more information about you than companies like google and Facebook, social media sites and search engines. I put some of these questions that are
worrying consumers to experts in a quick-fire round, Richard. Take a look.
(BEGIN VIDEO CLIP)
ANDREW JAY SCHWARTZMAN, GEORGETOWN UNIVERSITY LAW CENTER: Yes. In theory, data can be anonymized. But it is not very difficult for marketers to
combine certain kinds of data together and do a pretty good job at identifying exactly who you are.
Your financial information and other activities that you do online are generally encrypted. This is really much more about the things you do that
are of value to advertisers and marketers. Who you associate with, where you travel, what kinds of books and literature you're interested in, what
kinds of things you buy. Do you buy birth control products and so forth? Very personal information. Some of the things that can happen is that your
credit rating can be adversely affected. And certain kinds of insurance products may not be readily available to you, life insurance, disability
(END VIDEO CLIP)
SEBASTIAN: Whether or not you have anything embarrassing in your internet browsing history, which I'm sure you and I don't, this goes further than
that, there could be real world consequences to this. This of course is also a big win for these big companies, both for the likes of Verizon,
AT&T, and Comcast, the big ISPs, and for the big tech companies in Silicon Valley as well. This is part of what Donald Trump ran on, pro-business,
de-regulation mandate. This is what we're seeing here.
QUEST: Clare Sebastian in New York for us tonight, thank you, Clare.
We will take a Profitable Moment on a day that the Dow rose 60-odd points. We'll talk about the market's profitable moment, after the break.
[16:55:00] (COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. We are seeing the ramifications of Brexit starting to filter out into the business world. But rather than a
tsunami of announcements and any great cataclysmic changes, what you're really seeing is little bits here, little bits there. So, it might be J.P.
Morgan that's looking at taking the banking sector, J.P. Morgan looking at Dublin, a city, suggesting it's going to move a few jobs out of London.
What we really saw today is for example Lloyd's of London, Inga Beale telling us they're moving 5 percent of their business to Brussels because
it makes sense. I think that's what you're going to see a lot more of.
You're going to see little cherry picking here, a few jobs there, a few jobs there, as companies do what is reasonable and necessary. Because even
with the best will in the world, even with the most favorable negotiating status, the uncertainty of the next two years means that organizations like
Lloyd's have no choice. They have to start preparing for the worst while they hope for the best. And that's QUEST MEANS BUSINESS for tonight. I'm
Richard Quest in London. Whatever you're up to in the hours ahead, I hope it's profitable. I'm off for the next week. I hope it's a profitable one