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U.K. Party Leaders Clash Over Brexit Negotiations; Welsh Rust Belt Workers Wait for Elections Results; White House Responds to New Russia Reporting; Russian Firms Look to Stamp Out Cybercrime. Aired 4-5p ET

Aired May 30, 2017 - 16:00:00   ET


[16:00:00] RICHARD QUEST, CNN ANCHOR: The closing bell on Wall Street. Dow Jones Industrials, after a long weekend, the Dow has closed down around

50 points. Trading is over around the world. And it is Tuesday. It is May the 30th.

Tonight, we've driven Freddie Brexit to Newport in Wales, where we hear about good deal, bad deal, or no deal. What's the deal when it comes to

Brexit and the U.K. election?

Save our steel. The jobs may have gone but the steel industry we hear from what is happening in Wales.

And Russian intelligence on the Trump campaign. Just how far does it go? And Donald Trump's finances are involved.

Live from South Wales, from Newport with Freddie Brexit, I'm Richard Quest in Wales, where of course I mean business. Come on into the Baneswell

Social Club.

Good evening tonight from Wales. And that is where we are, the Baneswell Club in Newport, in Wales. We're at one of the most important parts of the

principality in the country of Wales. We're talking from Newport. These mining towns are the beating heart of British industry. And social clubs

like these are their spiritual center.

The people of Baneswell Social Club have been kind, generous, and invited us to join them here on this Tuesday evening as the British general

election campaign gets us back to economic issues. And there's just barely a week to go. We are in the main room here. It's nice and quiet, as we're

going to be discussing politics. We have some guests we'll be talking to throughout the course of the program.

In the lounge bar, they are having a karaoke evening, which might sound a little more entertaining than discussing politics, perhaps with these good

ladies and gentlemen. So, we'll have a bit of karaoke maybe, if we've got time.

But first, to the real issue and the general election. The British Prime Minister, Theresa May, is trying to steer the election campaign back to

Brexit, while the opposition led by Jeremy Corbyn is trying to protect its base. Now, Mrs. May's pitch, she is the most capable person to secure a

favorable deal with Europe.


THERESA MAY, BRITISH PRIME MINISTER: We're approaching the end of a long campaign. But it's crucial that everybody remembers this important fact.

Britain is about to enter into the most important negotiations of my lifetime. They begin just 11 days after polling day. And the European

Union is already adopting an aggressive negotiating position. That's why now more than ever, Britain needs a strong government and a strong Prime

Minister capable of standing up to Brussels.


QUEST: The opposition leader Jeremy Corbyn brushed off Theresa May's accusations that he isn't up to the task. In a forum hosted by Sky News

and channel 4. He argued you'll get the best deal possible for Britain's industrial heartland, places like this.


JEREMY CORBYN, LEADER, BRITISH LABOUR PARTY: Let's build a sensible, good, tariff-free trade relationship with Europe. Every car that's made in

Britain or most of the cars made in Germany, the parts come from both sides of the channel. You can say the same with aircraft. You can say the same

with an awful lot of other manufacturing industry. That's going to carry on, and it will have to carry on, otherwise we'll destroy our own

manufacturing industry.


QUEST: Put this into the bigger picture. And the Prime Minister is arguing the U.K. is only six lost seats away from Jeremy Corbyn becoming

prime minister. That might be a little hyperbole and she might have extracted or exaggerated some facts. But a poll conducted before last

night's debate shows the ruling party with a comfortable lead that's slipping. 12 points now over Labour. And there are other polls that show

the race even tighter.

So, if you're not too familiar with the system, 650 vacant seats, all up in one go in a general election in the House of Commons. This is the way it

was at the end of the last parliament, with the election in 2015. The Tories held 330. If the party loses six seats, it loses the majority.

Parties would need to form coalitions in order to govern. John Curtice is looking at all the numbers in London, Professor of politics at the

University of Strathclyde. Senior research fellow at NatCen Social Research.

[16:05:04] Now, look, these polls, look, give us an understanding. We see this wide range. She starts with over 20 points. She's now between 5 and

12. Are we really seeing a tightening in this race?

JOHN CURTICE, PROFESSOR OF POLITICS, UNIVERSITY OF STRATHCLYDE: Oh, I think there's no doubt that we are seeing a tightening in this race. The

truth is that every single polling company that has published results in the last three days shows the Conservative vote down by between two and

five points as compared with before the Conservative manifesto was published on the 18th of May. And every single poll shows the Labour vote

up by between 4 and 7 points.

So, when every single company doing their polls in a variety of different ways show movements of that kind, you know that something has changed.

Indeed, on average, you're quite right, the polls disagree about exactly how far Theresa May is ahead, what was once a 20-point lead on average in

the opinion polls, now looks like a 10-point lead.

Your listeners may be saying, well hang on, 10 points sounds like quite enough. Surely that's going to be enough for Theresa May still to get a

safe overall majority. Well the answer to that question is maybe, but not necessarily. Because it's got much more difficult in the U.K. to get a big

majority. Scotland is essentially out of the frame because the SMP when most seats here. There aren't that many Labour seats in England that are

that vulnerable. As a result, Theresa May's ambition which is to get a landslide, the majority idea of more than a hundred was always a very

difficult ambition to achieve. Now that the polls have narrowed, it looks much more difficult.

QUEST: This idea, though, that she's suggesting if I lose six seats, Corbyn could become Prime Minister, is that hyperbole when you look at the

electoral mathematics?

CURTICE: The truth is that hyperbole is an understatement, Richard. It's nonsense. The truth is that should the Conservatives lose their majority

but they're still far and away the largest party, they'll have simply have to govern as a minority administration. For example, there's a quite a few

Northern Irish MPs for the Democratic Unionists. They will probably help to ensure that the Conservatives stay in power. It's going to be very

difficult indeed for Jeremy Corbyn to dislodge Theresa May. Because even if Labour are roughly even with the Conservatives in vote, and no poll has

put us anywhere close to that as yet, given the way the geography operates, the Conservatives will be the larger party and they'll still be difficult

to dislodge.

QUEST: We'll need more help from you in the week ahead, sir. Thank you, professor, as we work out the differences in this.

I'm in the constituency of Newport West. There are six candidates who are fielding this particular seat. It was a seat created in 1983. And these

are the candidates you see that are taking part. Most of them you're going to hear from in the course of this evening. It's held by Labour, Paul

Flynn, since 1987. His majority is just a few thousand at the moment. So, it is a seat that's not inconceivable that the Conservatives could take. I

asked the Conservative and Labour candidates which issues matter most when you put it in that perspective.


ANGELA JONES-EVANS, CONSERVATIVE CANDIDATE, NEWPORT WEST: Basically, we are the party of low taxation. We want to get the best deal out of Brexit

so that we get a strong economy going forward after the Brexit deal has been finalized. We are the party of aspiration. We are the party of

business. I want to help Newport to encourage more money for regeneration and for skills training and for more small businesses and larger businesses

to develop and grow here.

QUEST: And you?

PAUL FLYNN, LABOUR CANDIDATE, NEWPORT WEST: We're a party that's devoted to the welfare of the people. It's a party with a great record of changing

life for the better for the majority of people. We're not a party that puts business first or money first. We're a party of idealism, worried

about the conserving our planet and working for the downfall of President Trump.

QUEST: So, you're working for the downfall of President Trump?

FLYNN: Indeed, actively working for that. Because I think he's one of the greatest threat to humanity. He's the greatest threat to our world. We've

only got one of those, and he is a threat, because he opposes global warming. He's a man who is scientifically illiterate. He's the most

powerful person in the whole planet. And he's likely to have a devastating effect.

QUEST: It's not exactly helpful though, is it? Since he is there for the next four years.

[16:10:00] FLYNN: Oh, is he? You're assuming that. He's a man who's going round inflaming frozen conflicts all over the world. And he's got

his impulsive finger on the nuclear button. I mean, do you really think that Americans, particularly with CNN and the people you produce who are

talking repeatedly about impeachment, are going to allow him to continue in that role?

QUEST: Let us leave the president to one side, if we may, and let us talk about Brexit. Now, you say or your leader says no deal is better than a

bad deal. Your leader says a deal will be done. Between those two points, what do you see as the difference?

EVANS: What I see as the difference is our negotiating strengths. We have to make sure we go into it with a strong negotiating position, and that

negotiating position is that no deal is better than a bad deal. So that's where we stand on it.

QUEST: You'd agree, though, if the deal is bad, you're better to walk away from it?

FLYNN: Yes, of course, that's right. But this is nothing to do with Brexit. The reason we've got this election is because the Tories know,

they say there are going to be bumps in the economic road ahead. They're going to be a great sinkhole appearing in the road ahead into which our

economy is going to fall. Now what the Conservatives are doing in the election is pretending it's about Brexit because they know they can win on

that. But it's really about ratting on promises they made two years ago in an election when they said there would be no cuts in the triple lock for

pensioners and there'd be no increases in taxes. There will be huge increases in taxes and they're going to rat on the promise two pensioners.

But they want a new mandate to do that. That's the purpose of this.

QUEST: You're both fighting for the Newport vote. Your majority, you're telling me, is just a few thousand.


QUEST: This is winnable for you.

EVANS: It is most definitely winnable. That's what we're aiming to do. I'm working hard to have a positive campaign so we can breathe new life

into Newport because it needs it. It needs support. It needs encouragement. And it needs energy. And that's what I'm hoping to give


FLYNN: It's very nice for someone from a neighboring city to come in and tell --

EVANS: I'm from Newport.

FLYNN: -- and patronizingly tell us they're going to solve all our problems. I don't remember ever meeting this lady. She's had no

involvement in Newport affairs for a very long time. And she's been parachuted in on a one-person shortlist into this. And the reason I'll be

winning this election is because Conservatives are voting for me and people from other parties are voting for me. There's a loyalty, a deep-seated

loyalty to my party in this city. We just won some brilliantly local elections. We one other elections last year.

QUEST: You each get one sentence. One sentence, no more, to tell me why your party should win.

FLYNN: I'm fighting this as a Welsh Labour candidate. We have a leader, Carwyn Jones, who is universally respected. We've won all the last three

elections we've had in this area. We're going to win this one too.

EVANS: I think Labour are being far too complacent about their position here. What we need is a win for the Conservatives in Newport West and in

the country as a whole in order to ensure that our economy is on track and is stable for the years to come.


QUEST: So that is the Labour and the Conservative perspective. Over here at the Braneswell Social Club, we need to put all of this in terms of more

perspective. Because there are lots of candidates. And we're going to talk to two of them from a neighboring constituency. It is the

constituency of Newport East. With me is Cameron Thomas Wixcey from Plaid Cymru, and Pete Brown who is Lib Dems.

[16:15:00] While you're talking, we're showing you the other candidate. What for you, what for Plaid Cymru, is the number one goal, the number one

issue here? You're clearly not going to form a national government. What can you gain from this?

CAMERON THOMAS WIXCEY, PLAID CYMRU CANDIDATE, NEWPORT EAST: What we hope to gain from this is to defend Wales.

QUEST: Defend against who?

WIXCEY: Against the conservative cuts. The Labour Party are week and divided. You don't know what's going to turn up. Jeremy Corbyn has said,

famously, he's against zero contracts. Only a couple of weeks ago, the Welsh government in the assembly were asked to ban them and they said no.

We don't know who's going to turn up to protect us.

QUEST: The Lib Dems, not just in your constituency but nationally, disappearing without trace.


QUEST: Nine percent in the national poll.

BROWN: That's hardly disappearing.

QUEST: It doesn't bode well.

BROWN: Let's see what happens, is the issue. We're still seeing at the moment a media focus on the two traditional parties. And I think we're

seeing positives and negatives for both of them.

QUEST: Do you think your parties -- you could clearer, a little bit clearer exactly where Lib Dems stand on Brexit?

BROWN: I don't think we could be clearer. Because we're very clear what our view is. And what we consider as the consequence if it goes through,

particularly if there is no deal at the end of it.

QUEST: Plaid Cymru, the goal in Wales is you say to protect. But is there still a vote, a nationalist vote here?

WIXCEY: In Newport, there is a nationalist vote. I know where the --

QUEST: It's small.

WIXCEY: It's small.

QUEST: It's very small.

WIXCEY: But it's growing. At the Camps elections, we stood in -- traditionally Labour seats and we found out we had voters there. We didn't

know that until we stood there. There is positive messages coming back.

QUEST: Good to see you, sir. Have a drink, I think we're allowed to buy you a drink, gentlemen. We'll have the Green candidates who we'll be

hearing from a little later in the program.

We continue our coverage tonight, we're hear in Wales. Now, the industries in this region, they rely heavily on access to the EU single market. Liz

Maher leads the Cardiff capital region for the South Wales Chamber of Commerce. She told me the Welsh economy is at a tipping point. Businesses

need certainty.


LIZ MAHER, SOUTH WALES CHAMBER OF COMMERCE: Times are always challenging because you have to deal with uncertainty. Businesses don't like

uncertainty. The markets don't like uncertainty. So yes, there's always challenge, but there's always optimism as well, particularly in Wales.

QUEST: Ok, this is what I discovered earlier today. I went out and I looked at the old LG factory which you'll be familiar with. That LG

factory, which then has become now a major data center, it's quite interesting.

MAHER: I think it is. And I think it reflects the way in which industrial strategies across the globe have changed, and particularly the way in which

Welsh government has approached inward investment. Because LG was very much a part of the 1980s inward investment of big businesses. That

obviously created its issue. And what we are now looking at is a changing industrial strategy. We've seen changes around the way in which steel

industry works in Wales. I think what you'll see as you travel around Wales is a much more forward thinking industrial approach.

QUEST: But which -- and I know you won't take a political point of view on this at least officially from the chamber -- but what are you wanting to

hear from the candidates in this general election which is getting tighter in the polls?

MAHER: It is absolutely getting tighter. You have to reflect on what Wales needs out of it as well as Wales within the U.K. Wales is different

in that over 60 percent of its exports go into the European market. Welsh businesses are very keen on ensuring access to that single market. And if

you look at the Brexit white paper from the Welsh government, you will see that being part of a single market is part of that list, which is a direct

contrast to what you'll see from the Westminster Brexit white paper.

QUEST: Because the reality is single market access is not going to happen because the U.K. government is unlikely to accept the pillars of the

European Union.

QUEST: You've got these four key pillars, obviously.

QUEST: That's a circle that can't be squared.

MAHER: I think it's about how we engage with the single market. Nobody says we can't trade with the European Union. It's the mechanism for trade.

So, what businesses don't want, whether you're talking across the U.K., a barrier to that trade. So, I think there is a concern that the chamber

would reflect in terms of this attitude of no deal. There is no deal. Businesses need certainty. We can't go into an environment where there is

no deal.

QUEST: Do you still find it somewhat odd that Wales voted Brexit in large part, when Wales is a recipient, a net recipient of EU funds?

[16:20:00] MAHER: I think it is interesting. And I think it reflects the way in which political processes take messages out there. There was a very

strong message about immigration which hit certain pockets of the community. Not all pockets would take that and the business community are

particularly keen to ensure immigration stays strong because we need those people to work and drive business.

QUEST: So finally, bearing in mind the low points of Wales, a post-Corbyn, post-steel, post 2008/2009, how would you say at the moment, if you had to

give me a touch and a feel for the economy in South Wales at the moment?

MAHER: I think the South Wales economy is on a tipping point. And I think you got some really positive, Wales is open for business, messages is going

out there.


QUEST: So that's the economics. We've had the politics. Now it's time for a little bit of drinking, Nick's with me. Nick, I will have a glass of

your finest whatever as we take a break. When we come back, Donald Trump, his finances, and the Russians, who may have been threatening some sort of

blackmail. It's QUEST MEANS BUSINESS. We're in Newport, Wales. Come along, good barman, come along good sir. Now we're talking.


QUEST: Welcome back to QUEST MEANS BUSINESS. We are in the Baneswell Social Club in Newport. Sources telling CNN that the Russian government

officials have been heard discussing potentially derogatory information about Donald Trump during the election campaign last year.

The information is said to be financial in nature. One source says the Russians thought they could use it to influence the Trump administration.

The White House said in a statement this is yet another round of false and unverified claims made by anonymous sources to smear the President.

We learned today the congressional investigation into possible links between the campaign and Russia has expanded to include Trump's personal

attorney, Michael Cohen, who says he will not cooperate with Congress. CNN's chief political analyst, Gloria Borger, joins me from Washington.

Gloria, these allegations of the way in which they said they had something on Trump, they had something on his financial background or something like

that, is this different to the so-called dossier that we reported on some months ago? It's getting extremely complicated.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: It is complicated. And we don't know what they were saying. We know that it wasn't favorable. We

don't know what they were saying or about whom they were saying it. We were also cautioned by officials to understand that in Russian to Russian

conversations many times, people brag to each other about what they have on this guy or what they have on that guy.

[16:25:00] And so, we're not quite sure what the nature, the specific nature of the conversations was. But we do know it was about Trump and/or


QUEST: And this is not only going to be part of the FBI investigation, but also of course part of the DOJ's special counsel's investigation or special

prosecutor. I assume this will also be something that he will look into.

BORGER: Well, right. These are kind of parallel tracks. You have the investigations that are going on in Congress. And you have the special

counsel investigation. They have to figure out how to work together, because the Congress believes that the American people need to get to the

bottom of what is going on, and they want to do that publicly. And the special counsel is more about prosecuting. And so, they have very

different goals. But they do have to talk to the same people. So, they have to work out who can testify where and when, such as with FBI director

James Comey.

QUEST: Now, perhaps the most difficult question here, Gloria, are we looking at something that's basically going to last the whole four years of

Trump's first presidency with potentially no resolution?

BORGER: We really don't know. I know that looking back at history at Iran-Contra, it took a while. The Congress had hearings a lot sooner than

the independent counsel who ended up trying to prosecute Oliver North. I would expect, and this may sound a little weird, but Congress will actually

move faster than the special counsel. And I think that that is because these are members of Congress who believe the public ought to get some

answers here so that the country can get on with the business of doing the job of governing. And that it might even be best for Donald Trump and his

associates to have this aired in public as quickly as possible.

QUEST: Gloria, thank you. Good to see you.

BORGER: Sure. My pleasure.

QUEST: You should come over here and get to grips with the British general election. That would give you something to get your teeth into.

BORGER: It will, in my spare time, yes.

QUEST: Absolutely.

The White House says Donald Trump has a fairly unbelievable relationship with the German Chancellor despite the diplomatic flacker that seems to be

bubbling away between Washington and Berlin.

Earlier today, President Trump tweeted, "We have a MASSIVE trade deficit with Germany, plus they pay FAR LESS than they should on NATO & military.

Very bad for U.S. This will change."

This might be regarded as a tit for tat, quid pro quo from the comments made by the German Foreign Minister who acknowledged the relations with the

U.S. were difficult. Speaking earlier, the Italian prime minister appear to back the German government.


PAOLO GENTILONI, ITALIAN PRIME MINISTER (through translator): Italy agrees that Europeans needs to take their future in their own hands. Global

challenges mean we need to do this.


QUEST: Karl-Theodor zu Guttenberg is the former German defense minister. He joins me from New York. Sir, how much of this in your view is a real

fundamental fissure between the way the German government and the U.S. government now views the way forward?

KARL-THEODOR ZU GUTTENBERG, FORMER GERMAN DEFENSE MINISTER: First of all, hello to you in lovely Newport. So, the relations are probably more

strained than I've seen it for the last couple of years. On the other hand, you have reactions in Germany after the latest tweets that people

would say, well, Donald Trump became the best campaign manager now for Angela Merkel seeking reelection in the fall. She might use these strains

we're facing right now to also to find approval in a more skeptical German population.

QUEST: But is this politics for Angela Merkel, are there votes to be had for her party by appearing not only to be tough against Donald Trump but

also to sort of be taking this very strong line?

GUTTENBERG: Well, we have to put things in perspective. So, her statement she gave at a Bavarian beer tent, imagine a Bavarian beer tent, this is

certainly not the place where you would start to redefine one of the most complex but also one of the most successful relationships we've had as

Germany for many, many years.

[16:30:10] So it's the main goal in the Bavarian beer tent to keep the people from becoming sober. So, it didn't take long after her statement in

the beer tent, her spokesman and others came to the conclusion, they said, but we still have to have very, very close and reliable ties with the

United Nations, is our core partner. She's walking on a thin line here, Richard. She is walking on a thin line as a one hand, she knows she can

please the German public with a lot of criticism. On the other side, she has to keep this relationship even with the rebirth of Dennis the Menace


QUEST: Now, just remind us, Martin Schultz, we thought he would do quite well. At one point, it seemed as if the opposition was getting close to

winning -- or at least giving her a run for her money. But that seems to have evaporated. Is she a shoe-in for the election or is it another case

of Theresa May?

GUTTENBERG: No, I think it's almost a clear path now for her to reelection. Still, a lot of things can happen in this summer. And

especially if the relations on the international stage deteriorate. She still has a G20 meeting now, where she's presiding and there she has to

deliver results. People will watch her very closely. If again Donald Trump appears to be someone who is disturbing every single compromise

imaginable, that could backfire also for her.

QUEST: All right. Karl-Theodor, good to see you, sir, in New York, thank you for that.

When we come back after the break, we'll turn our attention from Freddie Brexit who has brought us to Newport, Wales, we'll be talking about the

coal industry and particularly the steel industry after the break. But it is also karaoke night here at the Baneswell Club. Just to give you an

idea, you see what they're singing while we're talking politics.


QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment from Newport in Wales, when Welsh steel workers are left

waiting over the future of their plants. We'll speak to the head of the manufacturers group. And companies in Moscow are trying to stamp out

Russian-on-Russian cyber-crime. We'll talk all about that.

[16:35:00] Before any of it, this is CNN, and on this network, the news always comes first. Sources are telling CNN that Russian officials

discussed having potentially derogatory information about Donald Trump and his aides. The conversations, intercepted by the U.S. during the

presidential election, sources cautioned the claims could have been exaggerated or made up.

The U.S. has tested a new antimissile system just days after North Korea test fired a ballistic missile, the pentagon launched a ground-based

interceptor from California to intercept a mock ICBM target over the Pacific. It's not known whether it was a successful test.

Ariana Grande will headline a benefit concert in Manchester next Sunday. One Love Manchester will also feature Coldplay, Katy Perry, Pharrell

Williams. The concert will raise money for victims and families of the terror attack which took place at the end of Grande's show last week.

It is important that we hear all the views in the election. Joining me is Pippa Bartolotti, the Green Party candidate in Newport West, which is where

we are at the moment, correct?

PIPPA BARTOLOTTI, WALE' GREEN PARTY CANDIDATE: That's correct. And it's Wales Green Party.

QUEST: It's the Wales Green Party. Is there a difference?

BARTOLOTTI: There certainly is. Green Party is a worldwide movement. If there's proportional representation in this country, we would have 25 MPs

right now.

QUEST: Well, there isn't, and you don't.

BARTOLOTTI: No need to snap at me.

QUEST: No. But there was a vote on that very question, wasn't there?

BARTOLOTTI: It was for a kind of middle way and people weren't too keen on it.

QUEST: Let's talk about what your policies are. What are you going for that will hopefully increase the number of seats and increase your support?

BARTOLOTTI: Green Party has got a unique pledge. And that's the citizens income, otherwise known as universal basic income. This is a flat income

for every single citizen in this country. This is a societal enabler. It will help people to train, to --

QUEST: The universal income, which has been tried, is not an easy policy to implement and it can be a potentially expensive one.

BARTOLOTTI: Not necessarily, no. We pay a lot of money out in benefits anyway, and we have a lot of issues coming on the horizon with automation

takin jobs. I want to make sure that no citizen is left behind to zero in our contract slave economy.

QUEST: Do you think this was an election that need to happen, finally? And if you had to give your gut feeling on how it's going to go, what would

it be?

BARTOLOTTI: It seems at this moment that the Tories will win. But maybe, just maybe they'll have a reduced majority. And that would be really egg

in the face of Theresa May, and she would on her own terms have lost the election.

QUEST: Just by not increasing the majority.

BARTOLOTTI: Precisely.

QUEST: Good to see you. Thank you very much indeed for coming along this evening.

BARTOLOTTI: Thank you.

QUEST: One of the fascinating things about Wales is the amount of inward investment. We heard us talking about it earlier in the program. In the

1990s there was A very famous factory here, the LG semiconductor factory. A lot of public

money went into it, the factory never really opened properly but today that site is now a world leading data center. It's a microcosm for Wales.


[16:40:00] QUEST: This building has a checkered past. Designed in the 1990s for LG and largely paid for by government grants. The project was

not a success. The promised jobs never came. And LG gave up the building and paid back the grants. The building lay empty for ten years before it

was sold and converted into a data center. Today it is the largest data center in Europe, containing thousands of servers, used by customers like

BT and IBM. The building has enough power for a city of half a million people. And it makes a virtue of the fact that it's out of town but still

close enough to the major cities. So only half the original LG factory from the 1990s is occupied today. The other half remains empty with signs

to rent. It's been empty for the best part of two decades. This is a microcosm of the Welsh economy. Lots of good intentions and inward

investment. Frequently scupper-ed by hard economic times, but always tinged with great plans and opportunities.


QUEST: And that issue as it relates to LG and now the data center. With me is Garreth Stace, the U.K. Steel director, good to see you, sir.


QUEST: Manufacturing steel used to be huge in Wales, clearly decimated, it's gone elsewhere. What are you looking for out of this election?

STACE: What we want is a government that is committed and firm and has a strong industrial strategy, but with steel at the very heart of that

industrial strategy. Because we should have a rosy future for the steel section.

QUEST: That strategy would be on two terms, wouldn't it? Firstly, to ensure steel manufacture in this country, but also to stop the dumping of

steel within for example the EU or U.K.

STACE: Exactly. That's what we've seen, we've seen China with an army of steel dumped onto our market. It hasn't stopped, it continues, even though

China says they're closing their steel plants, they're actually opening steel plants. What we want to see from the next government and from Brexit

is a firm trade defense instrument regime that tackles that dumping.

QUEST: Realistically, in an era where other candidates are talking about issues like the universal wage, you've got the Lib Dems, you've got Corbyn

on issues of social wherever. Is your voice going to get lost? There's no votes in steel.

STACE: There should be an awful lot of votes in steel.

QUEST: But there are not at the moment.

STACE: It feeds into important supply chains in the U.K., aerospace, construction. Without the steel sector, the heart of our economy would

suffer, not just at local level, but at national level.

QUEST: If you can get that steel elsewhere, so all those people you talked about, aerospace, motor vehicles, manufacturing, engineering. If they can

get their steel elsewhere, what's their interest in protecting your side?

STACE: If they can get their steel elsewhere, what is the point of them being in the U.K.? What we will lose is those supply chains in the U.K.

feeding the local economy, the national economy. That could be decimated without foundation sectors like steel feeding directly into those sectors.

QUEST: Final thought, when I come to places like Newport, northern England, which have thriving steel industries, you're often left feeling,

is there an industry worth fighting for? Is there a future for something, or is it best not to let it just say, specialized steel maybe, but major

steel, elsewhere?

STACE: All of the steel sectors in the U.K. It's high efficient, it's innovative. What we need from the next government is a level playing field

in order to compete on that market. Now we have our hands tied behind our back with business rates higher. What we need is that chance to compete

going forward. If we have that chance, we'll be the world leading.

QUEST: We're glad you came to talk to us this evening. Thank you very much indeed.

We're in Newport, in Wales. Buy the man a drink. When we come back, we're talking about Russia, cybercrime, but interestingly, Russian-on-Russian

cybercrime. It's a new twist to a nasty tale.


QUEST: Welcome back. It's QUEST MEANS BUSINESS. We're at the Baneswell club, they kindly let us have the large room while karaoke continues in the

smaller. Put your beer down, before the questions get nasty. Chris Evans is the Newport Independence Party. Who are you supporting?

CHRIS EVANS, NEWPORT INDEPENDENCE PARTY: We're the third largest party in Newport at the moment. As an independent, we've been sort of watching the

wheels turn round. I found the election very interesting.

QUEST: Who are you liking the look of?

EVANS: I think they're both terrible.

QUEST: Isn't that the time in democracy when you have to hold your nose and vote anyway?

EVANS: You do, you do. But if you were to look at the two main leaders, the Tories made a fundamental mistake. They built their brand around

Theresa May, and she's not that good. As I walk around the city today, one guy summed it up to me, I said what's the situation like here, he said,

rough, rough, rough.

QUEST: Yes, OK. There are people who think that. Newport is a great place. There's so much potential. But in order to build on the potential,

you've got to acknowledge some of the negatives. There's the thing that goes around saying, you cannot be -- you have to be positive all the time,

you know, but you have to acknowledge the negatives to build on the positives. So, we saw in the report we just had, where I was talking about

the LG factory, it was 1994, it was a symptom of what was happening. Where is Newport's economic future?

EVANS: That's a great point. What we need to do is reinvigorate small business. There's been a dependency in this area for literally decades,

first of all on nationalized jobs, then public sector jobs in the '80s, passport office, stats office, et cetera. What we need to do is invigorate

the private sector and small business. That's something that the current council really need to do in Newport.

QUEST: Allow me to invigorate you, sir.

EVANS: Thank you for coming to Newport.

QUEST: Thank you for having us, it's been a wonderful day. We continue tonight as we look at new revelations about the Russian government's link

with the Trump campaign. They're shining a spotlight on the issue of hacking in the global cyber war. Russians are both attackers and victims.

It's the latest in our series, "Marketplace Russia," as Clare Sebastian reports from Moscow.


CLARE SEBASTIAN, CNN SENIOR INTERNATIONAL REPORTER: This is the public face of Russia's fight against cybercrime. In a video released by the

country's interior ministry, members of a cybercriminal gang are arrested, accused of stealing hundreds of thousands of dollars from the mobile

devices of Russian bank clients.

ILYA SACHKOV, CEO, GROUP-IB: Our forensic expertise is very important part of the investigation.

SEBASTIAN: He heads Moscow-based cyber investigations firm Group-IB. Founded in 2003, they were the first private Russian company to conduct

cyber-criminal investigations, working closely with law enforcement.

SACHKOV: It's very interesting, usually Russians steal money from Europe or the United States. Actually not, most groups act here, steal money here

but sell tools to different crime groups outside of Russia.

SEBASTIAN: Russia's cyber activities are under a global spotlight right now.


RICHARD BURR, CHAIR, SENATE INTELLIGENCE COMMITTEE: Our community has been a target of Russian information warfare, propaganda, and cyber campaigns.


[16:50:00] SEBASTIAN: The U.S. continues to investigate whether the Russian government ordered a hack on the U.S. election last year, something

Moscow denies. In March, the U.S. charged Russian security officers in connection with hacking into Yahoo's network and stealing information from

at last half a billion accounts. Amidst all that, the Russian government wants to be seen to be taking cybersecurity seriously. In a recent global

ransomware cyberattack that hit Russian companies, the central bank, a thousand computers here at the interior ministry, the message was, it's

under control. WannaCry, which affected computers worldwide, was a wakeup call, but not enough of one. His detection software continues to pick up

malware around the world.

SACHKOV: So, you see the name of this group Qbot stole information about credentials.

SEBASTIAN: And the problem he says is politics.

SACHKOV: Without global cooperation, nothing will happen. That's why a lot of hackers use combinations like Russia/Ukraine, Russia/United States,

India/Pakistan, Israel/Lebanon because they feel very safe in this particular environment, when countries do not politically cooperate. This

increases the level of cybercrime.

SEBASTIAN: Reporter: he says that's the best chance to strike the hackers that strike at home. Clare Sebastian, CNN, Moscow.


QUEST: We're in Wales to find out what's on the voters' mind. Let's find out what's on their songs and their lists as we continue. Time for a

little bit of karaoke tonight. Good evening, sir. This is where the karaoke is taking place. The words are there. Sing along!


QUEST: I promise you, you really didn't want to hear me do too much karaoke, not if you wanted to sleep well this evening. I'm here at the

Baneswell Social Club in Newport, Wales. Many of these clubs are no longer around, but it's delightful to be here at one that is. Good evening, sir.

Joining me is Adam Smith, the chair of the Rainbow Newport, correct?


QUEST: Tell me what that's all about.

SMITH: It's a community group set up in Newport for the LGBT community.

QUEST: For the LGBT community, what will be the issue that you want in an election where pretty much the parties are pretty similar on many issues?

SMITH: On many issues, but not all issues. There's still room for improvement. One of the major issues facing us in the U.K. is pensions for

same-sex married couples. We're not entitled to the full payout compared to heterosexual married couples.

QUEST: This is something that you're putting pressure on local politicians for this?

SMITH: Already am.

[16:55:00] QUEST: Michael Young is with me. And your big issue is what, sir?

MICHAEL YOUNG, NEWPORT ACTIVIST: My big issue is trust in politics.

QUEST: There isn't any.

YOUNG: Exactly. That's the issue.

QUEST: You don't seem naive. Why do you think there should be?

YOUNG: I think the trouble is we've lost so much trust in politicians, both on a local and a national level, that instead of believing their lies,

we're now starting to -- instead of disbelieving the truth, we're now believing lies and we're getting politicians coming forward who don't have

to actual stand by their pledges or even make any attempt to stand by their pledges.

QUEST: Would you agree, Adam?

SMITH: Yes, we've seen that quite a bit with the recent referendum around Brexit. Brexit was done on lies.

QUEST: Thank you, gentlemen. Allow me now to tell you, we've been here in Newport today. We go on the road again tomorrow. Freddie Brexit. We fire

up the camper van. Tomorrow we are in Weston- Super-Mare on Wednesday. Thursday, we are in Bath. Friday, we are in Windsor. Then it's just less

than a week before the election. So, follow us, and of course #DriveWithQuest where you can join in. I promise you we'll have plenty

more from Windermere tomorrow. I'll have a Profitable Moment for you after the break.


QUEST: Tonight's Profitable Moment. Appropriately, we end with a game often played here in social clubs. Darts. Think about it like this.

Politics is very much like playing darts. You take your best shot. You throw it at the board or in this case the electric. And you hope for the

best. The ultimate aim, of course, is to try and make your best argument and make it as cleanly as possible. You want there to be no doubt. You

want to go straight for the center. That's what we've been seeing here in Wales over the past few days.

As we move into the rest of the country, we're going to see other darts flying. Those arguments being made that somehow politicians have to get

through their message. Is it possible when you think about it that somehow you do make an argument that people find appealing? If you do succeed, my

word, imagine that! Who would have thought it? And that's where we leave you tonight. We will be in Weston-Super-Mare tomorrow by the seaside with

Freddie Brexit. Because that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in Newport. We thank you to Newport, to the Baneswell Club

for inviting us this evening. And as always, whatever you're up to in the hours ahead, I hope it's profitable. I'll see you tomorrow. In Weston-