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QUEST MEANS BUSINESS

British Prime Minister Raises Terror Threat Level to Critical; McMaster: Trump Has Military Options for North Korea; Desperate Pleas for Help Across the Caribbean; Facebook Disables Feature Allowing Ads Aimed at Anti-Semites;

Aired September 15, 2017 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[16:00:00] UNIDENTIFIED MALE: There are probably hundreds of police officers looking through video footage, taking calls from the public but

also guarding critical installation and it allows them to replace some of the people at less important locations with soldiers who are not

necessarily interacting with the public.

HALA GORANI, CNN HOST: All right. Thanks, so much Peter Newman for the analysis and expertise. I'm Hala Gorani. Zain Asher picks up with QUEST

MEANS BUSINESS in New York.

ZAIN ASHER, CNN HOST: The closing bell brings trading to as close on Wall Street ending the day at another record high. Wall Street appears to be on

winning streak. Good evening, everyone, I am Zain Asher from New York. Markets do appear as they're ending up the day, 63 points or so. Markets

really seemed to have appear to have shrugged off the terror attack in London and North Korea's missile launch. We'll get all the business news

in just a moment. I want to head to Nima Elbagir in London.

NIMA ELBAGIR, CNN CORRESPONDENT: Good evening, Zain. Breaking news tonight after a rush hour blast on the London tube this morning, the

British Prime Minister has just raised the terror threat left in the U.K. to critical. That's the highest level. That means another attack is

considered to be imminent. Here's what we know at this hour.

There was a sudden boom and a flash from an improvised explosive device during Friday morning's busy commute. The IED appears to have been crude

and poorly designed. It detonated on the train just after it arrived at the Parsons Green Station in Southwest London. There was panic and chaos

as commuters rushed to escape. 29 people went to hospital. Fortunately, none of their injuries are serious or life threatening. A source tells CNN

the device was intended to cause greater damage. Police say the investigation is live and so far, no arrests have been made. The Mayor of

London insists London is still a safe city.

(BEGIN VIDEO CLIP)

SADIQ KHAN, LONDON MAYOR: Over the course of the next period you will see an enhanced police presence. That enhanced police presence is to ensure we

are as safe as we can be. We are a safe global city. I'm afraid though that terrorists have over the last few months stepped up their attempts to

kill, injure a harm us. We've seen in Barcelona, in Brussels, in Rotterdam and Stockholm and Paris and Manchester and other cities across the world.

Attempts by terrorists to kill, injure and harm.

(END VIDEO CLIP)

ASHER: That was Mayor Sadiq Khan speaking there. I just want to toss to U.S. President Donald Trump who is speaking right now to military personnel

and their families. Take a listen.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Before we begin, I want to say that our hearts and prayers go out to the people of London who suffered

a vicious terrorist attack today. I spoke with a wonderful woman, British Prime Minister Theresa May, this morning and relayed America's deepest

sympathy as well as our absolute commitment to eradicating the terrorists from our planet. Radical Islamic terrorism. It will be eradicated,

believe me.

America and our allies will never be intimidated. We will defend our people, our nations and our civilization from all who dare to threaten our

way of life. This includes the regime of North Korea, which is once again shown its utter contempt for its neighbors, and for the entire world

community.

After seeing your capabilities and commitment here today, I am more confident than ever our options in addressing this threat are both

effective and overwhelming. Our thoughts also remain with those recovering in the wake of hurricanes Irma and Harvey. I visited Florida yesterday

where the American people have once again shown the world how resilient, strong, and truly united we are. We're going to help our fellow Americans

put their lives, their homes and their communities back together. Because when America are in need, American pull together.

And we know we can always count on the courageous members of our nation's military to be there every step of the way, just like more than 400 Air

Force medical personnel who have deployed to Florida to help care for the sick and the injured.

[16:05:02] To the men and women who proudly wear the Air Force uniform, who keep our country safe and who fill our hearts with prided. Thank you for

your service and devotion to America. Thank you.

I am truly thrilled to join you today at this really incredible milestone. 70 years since the founding of the United States Air Force.

Congratulations. We're celebrating 70 years of history, 70 years of heroes, and 70 years of victory. I also want to thank all of the amazing

family members and loved ones who sacrifices make your service possible. We love you, we appreciate you and, everything you do. Thank you.

For seven decades, the United States Air Force has pushed the boundaries of science and technology. Helped restore peace and stability to trouble

lands and kept Americans safe from those who threaten our very way of life. Nothing inspires more confidence in our friends or strikes more fear in the

hearts of our enemies than the sight of American war planes on the horizon. You patrol the sky, protect the homeland, and deliver American justice to

anyone who dares to threaten our people. From the earliest wooden biplanes to the high-tech UAVs, to the awesome power and stunning beauty of the F-

35, B-2, F-22, and I saw a lot of them today. The F-15, the F-16, F-18, I don't know which one I like the most. But our aviators have given America

total dominance of the air and space, no matter where we fly. Now, when our enemies hear the F-35 engines, when they're roaring overhead, their

souls will tremble and they will know the day of reckoning has arrived. That is the way --

ASHER: President Trump there speaking at Joint Base Andrews. They are surrounded by men and women in uniform. Essentially, he started off

wanting to relay America's sympathies to London after the terrorist attack we told you about this morning that happened at Parsons Green. In which

two dozen ended up being injured.

He also briefly touch, on North Korea as well, as well as the importance of the U.S. having a tougher stance on North Korea. Interesting enough we did

hit record highs in the markets. Markets do seem to be shrugging off the chaos happening with North Korea.

But in the meantime, I want to follow what is happening in London and the wake of that terrorist attack this morning. On the tube, want to go back

our Nima Elbagir who is joining us live now from London -- Nima.

ELBAGIR: Thanks, Zain. Erin McLaughlin has been following the investigation for us. Erin, you heard the British police there in their

press conference, bring us up to date.

ERIN MCLAUGHLIN, CNN CORRESPONDENT: That's right. We just heard from the assistant Police Commissioner, Mark Rowley, update us on the investigation

efforts. He described it as a complex, wide-ranging investigation which includes hundreds of police officers combing through the CCTV footage

surrounding the station, tube stations, as well as on the train in question. They're looking through frame by frame pretty much of that

footage for clues as to who perpetrated this attack.

We also understand that they're taking the decision to raise the threat level here in London to critical. Meaning, according to Prime Minister

Theresa May, that a further attack may be imminent. Also means that they're increasing security presence here in London at key transportation

sites, as well as across the whole of the United Kingdom. We understand they're calling on military personnel so that to free up armed police to

continue to patrol key sites in the city.

In terms of the investigation itself, in terms of what we know that unfolded on the train just behind me at 8:20 a.m. this morning, the height

of morning rush hour. An explosion occurred. The result we understand from authorities of an improvised explosive device that was crudely made.

Some 29-people injured in this attack, though thankfully, none of those injuries were of critical life-threatening nature. No fatalities as well.

[16:10:00] But really, a focus of this instigation at this point is this improvised explosive device because according to British security sources

there was a timer found inside of the device which was a crudely made, poorly made, bucket inside of a supermarket bag. That timer suggesting

that whoever planted the device, whoever constructed the device is on the run. The subject of this really what has been described again as a

complex, wide ranging investigation in London tonight -- Nima.

ELBAGIR: It does seem pretty miraculous, Erin, that lives weren't lost. Thank you so much for that.

Even with the investigation ongoing President Trump was up and tweeting, describing the perpetrator as a loser terrorist, adding the thick and

demented people were in the sights of Scotland Yard. Must be proactive, exclamation mark. He also said that the travel ban into the United States

should be far larger, tougher, and more specific, but stupidly, that wouldn't be politically correct. His speculation that bomber was known to

Scotland Yard earned him a swift rebuke from the police in the Prime Minister.

(BEGIN VIDEO CLIP)

THERESA MAY, BRITISH PRIME MINISTER: I never thank it's helpful for anybody to speculate on what is an ongoing investigation. As I've just

said, the police and security services are working to discover the full circumstances of this cowardly attack and to identify all those

responsible.

(END VIDEO CLIP)

ELBAGIR: Dal Babu is a former chief superintendent at the Metropolitan Police. He's in Parsons Green with us this evening. Thank you so much for

joining us.

DAL BABU, FORMER CHIEF SUPERINTENDENT METROPOLITAN POLICE: Thank you for inviting me.

ELBAGIR: Let's start first with President Trump's tweets. It just feels like at this point is two for two. This the second terror incident where

he has been less than circumspect in terms of sharing information. What does that do for you next time you ask to share security and sensitive

information with your allies over in the U.S.?

BABU: Well, I think he's a remarkably naive individual. To actually share that kind of information is not helpful. I think the Prime Minister has

used the word not helpful, the police are not particularly happy. If you have information you're sharing with your friends and allies, then it's

really, really important that you respect that intelligence, you respect what people are saying. And the police, the Prime Minister, Theresa May,

who has not intervened in the investigations happening in America. It would be wrong. It would be the wrong thing to do. She wouldn't have all

the full information.

So, I think it shows a remarkable level of naivety on the part of President Trump. And actually, quite dangerous because if he's actually giving out

information -- and we saw this with the Manchester bombing where information was shared with the American services and then subsequently

leaked out. That means people don't have trust with major allies which is unfortunate and shouldn't happen.

ELBAGIR: Presumably, when President Trump says that this person was known to security forces here, people who believe they might be on the radar are

going to be alerted and perhaps start moving underground.

BABU: Absolutely. So, what you'll see and hear from Mark Rowley, the assistant Commissioner a charge of counterterrorism for the country, is

Mark a very, very measured individual. A very bright, but hugely respected individual from all communities. And he will say that he can't give you

certain information. He's been up front and honest because at the moment the police will have thrown absolutely, you know, the kitchen sink would

have been thrown at this investigation. They would have officers looking at the resources that we've got and looking at identifying the individual

or the individuals. And I don't know whether it's a lone wolf or somebody as part of a cell. But the ultimate thing is the two aspects that are

particularly important here. One is the forensics. Now the item didn't blow up. The bucket didn't blow up. So, the police will be able to

recover DNA, fingerprints and some great forensic.

ELBAGIR: We understand this timer.

BABU: Yes, the timer is there. Also, where items have been brought. We've saw a little bag there. Are we going to be -- that might be in this

country you to pay for a bag, that bag might have gone through supermarket? So, there's all those --

ELBAGIR: Supermarket.

BABU: There might be all those kinds of forensic opportunities there, because that device hasn't blown up. So, it's still there fairly intact.

That's really, really important. Where the chemical has been brought from, the fertilizer was bought. It's a great opportunity. So that's one

aspect.

The other aspect is CCTV. We have extensive CCTV and there is only a few stops that this individual could have got on or got off of or the tube.

And the police would be track back. They've got a very, very specific time when it happened. So, they look at that. And sort of say right, this is

the individual and, you know, if somebody is carrying something like that they're going to be fairly distinguished.

[16:15:00] ELBAGIR: And just quickly, when the threat level is raised to critical, what does that mean on the ground?

BABU: It's more resources and it's the expectation that an attack will take place. So, one of the difficulties we had is we've had a 20 percent

reduction in policing. We're having to the Army to patrol the streets. Now the Army, are not used to working with their members of the public.

But that's a result of the 20 percent cuts. Theresa May said Barry pointedly when the Police Federation, the police union said look, now we've

got less and less resources, we want more resources. She says your crying wolf. And I think those words are going to come back and haunt her.

Because the Police Federation weren't crying wolf. And I feel very, very sorry for my former colleagues. They're working long hours. The men and

women are totally dedicated but there's 20 percent less of them.

ELBAGIR: Dal Babu, thank you so much for your insights. Very interesting.

I will be back later this hour where I'll be speaking with Peter Newman who says this attack has all the hallmarks of an attack on wrong. For now,

back to Zain Asher in New York.

ASHER: All right, Nima, thank you so much.

Still to come here on QUEST MEANS BUSINESS. Kim Jong-un fires North Korea's second missile over Japan in less than a month. We'll take a hard

look at the sanction strategy and we'll also get the view from Tokyo as well. Also, I had here on QUEST MEANS BUSINESS, Facebook is under fire

over targeted advertisements promoting hate. We'll also and hear from the co-founder of Twitter on that company's fake news crisis as well. Stay

with us.

(COMMERCIAL BREAK)

ASHER: Welcome back everybody. The White House national security advisor said it's wrong, it's wrong to think that are no military options against

North Korea. HR McMaster says the U.S. doesn't want to use force, they don't want to be forced to use force or to take military action. But that

option is there if that decision is made. McMaster and UN Ambassador, Nikki Haley spoke at a White House briefing just a few hours ago.

Basically, one day after North Korea launched a missile over Northern Japan. Haley said Washington wants to wait for the latest U.N. sanctions

to take a toll on North Korea's economy.

(BEGIN VIDEO CLIP)

NIKKI HALEY, U.S. AMBASSADOR TO THE UNITED NATIONS: They cut 30 percent of the oil. They banned all the labors. They banned 90 percent of the

exports. They banned joint ventures. We've basically taken -- and in the words of North Korea -- we have strangled their economic situation at this

point. That's going to take a little bit of time. But it has started to take effect. What we are seeing is they continue to be provocative. They

continue to be reckless. And at that point, you know, there's not a whole lot the Security Council is going to be able to do from here when you've

cut 90 percent of the trade and 30 percent of the oil. Having said that, I have no problem kicking it to General Mattis, because I think he has plenty

of options.

(END VIDEO CLIP)

ASHER: The Trump administration also repeating its call for the rest of the world to make sure North Korea feels the heat and feels the pressure to

end its nuclear and missile program.

[16:20:00] CNN military and diplomatic analyst, John Kirby, joins us live now from Washington. So, John, just give the world your honest opinion on

the Trump's handling of the North Korea crisis. What do you really think?

JOHN KIRBY, CNN MILITARY AND DIPLOMATIC ANALYST: What I really think, Zain, is that aside from the President himself and his tweets, I think his

team, his national security team have actually handled North Korea about as good as can be expect. I think they've taken it very seriously since

inauguration day. They have tried to put together an integrated comprehensive and international approach to solving this problem. And I

give them high marks for the effort thus far. I think when they talk about military options, of course there are military options. And there were

military options, Zain, before President Trump got elected as well.

But everybody recognizes, no one less than Secretary Mattis, our defense secretary, the real danger in employing those options. What they -- when

they talk about them, the talk about them sort of within the two Ds if you will. One, their defensive options. Yes, we have offensive capabilities

but they really try to focus on defensive capabilities that we have on the peninsula and in the region to protect our allies and ourselves.

And the second D is diplomacy. Secretary Mattis has been very clear that he wants secretary Tillerson and the State Department to lead this effort.

And thus far, this administration has been doing exactly that. So, in general, I think they've done pretty well handling it so far, though,

obviously, North Korea remains a significant threat.

ASHER: OK, so you think they've actually done a good job overall in general handling it. But when you think about -- you mentioned the tweets

-- but when you think about the aggressive rhetoric. The dangling of the military option. Trump talking about North Korea will see fire and fury.

Is that helpful? Especially if you're trying to get North Korea to actually come to the table. If anything, it only makes them more defiant.

It makes them much more intent on firing another missile.

KIRBY: Couldn't agree with you more, Zain. That's why I said with the exception of President Trump, I think his team has handled it well.

ASHER: Right.

KIRBY: but you're right, you're absolutely right, Zain. His tweets, his fiery rhetoric, the fire and fury, the locked and loaded, the tweets that

are embarrassing. Not only to -- not only trying to embarrass President Xi, but even The President Moon Jae-in of South Korea, our ally. No, those

are not helpful steps. And I think if you put his rhetoric into the mix then clearly what this administration is sending is mixed signals. But by

and large I think on the real act of actual policymaking and generation and implementation. Guys like Tillerson, Nikki Haley, McMasters, Secretary

Mattis, I think they're doing about as good as can be expected given that in truth, they inherited a much more dangerous Pyongyang and North Korea

than either of his two predecessors did.

ASHER: Admiral Keble -- Kirby -- excuse me. It's Friday.

KIRBY That's OK.

ASHER: I apologize, thank you so much. Appreciate you being here.

KIRBY: You bet.

ASHER: So. Let's look at the Japanese perspective. Because this sound, this alarm that I'm about to play you h

(BEGIN VIDEO CLIP)

(SOUND OF AN ALARM)

(END VIDEO CLIP)

ASHER: So, that sound -- that is what it sounded like when the North Korean missile flew over the country. The second-time people have heard

that sound in two weeks. CNN's Will Ripley is live for us in Tokyo. It's interesting, Will, you know, you live in Tokyo, you've obviously been to

Pyongyang 14 or 15 odd times. But how do the Japanese -- how should they be haling this? Because they're the ones who are really caught in the

middle. Japan and South Korea are caught in the middle. It seems as though their fate is being decided by Washington and Beijing.

WILL RIPLEY, CNN CORRESPONDENT: And it's interesting to kind of compare how people, you know, on the Korean Peninsula feel about this and compare

with people here in Japan. Who I would say are much more nervous. There have been 22 North Korean missile launches this year. Many of them have

been fired in the direction of Japan and come down the waters off Japan. The last two intermediate range launches have flown over Japan and for the

first time since World War II, residents in Hokkaido are hearing air raid sirens. And having to explain to their children what to do in the event of

a nuclear attack or a bombing attack.

This is a country that lives with the scars of Hiroshima and Nagasaki. The only two time's that nuclear weapons have been used against civilians. And

this is a country that has made its mission to try to prevent that that from ever happening again. Now they have North Korean rhetoric just in the

last few days with North Korean state media putting out an editorial that, you know, the islands of Japan should sink into the ocean from a North

Korean nuclear bomb. So, it's obviously a frightening situation. People are nervous. I don't think fear is consuming people.

But Japan's strategy is really to just rely on its alliance with the United States. There have been a number of conversations between president Trump

and Japanese Prime Minister, Shinzo Abe. Secretary of State Tillerson spoke with his Japanese counterpart Taro Kono, after this latest launch.

And just reiterating that alliance.

On the Korean Peninsula people are much more nonchalant about the whole thing, Zain. Which is interesting because they would stand to be really in

the crosshairs of any military confrontation.

[16:25:02] But people in the North and the South have lived under the imminent threat of war for so long that they go about their lives and it

doesn't -- it's not something that most people are preoccupied with. But it is pretty surreal. I woke up in North Korea, flew out of the airport

where they launched that missile from, and now I'm here in Japan the following morning, the country that the missile flew over. And it is just

-- it's one of those things you wonder when is this going to end? How is it going end? And right now, there are no easy answers.

ASHER: Yes, it must be quite surreal for you since you live there. Will Ripley, life for us there, thank you so much. Will Ripley, who you just

saw there, has been reporting inside North Korea for the past week. I've almost lost count of how many times he's been there. I believe it's his

15th time in that country. You can get an exclusive look at the country like you've never seen it before. that's "Secret State." You can watch it

Saturday 8:00 p.m. London time, 9:00 p.m. Berlin time, only on CNN. Trust me, it's very good. You won't want to miss it. Really in-depth

reporting by our Will Ripley there.

OK, back on some business news that we've been following. Nearly a third of EU states supported a plan to raise tax bills on digital multinationals.

The plan was proposed by French Finance Minister, Bruno Le Maire, he wants to tax revenues rather than profits. The EU has been accused of targeting

foreign companies. But Le Maire insists that this is all about fairness.

(BEGIN VIDEO CLIP)

BRUNO LE MAIRE, FRENCH FINANCE MINISTER: Did you not want to over tax these companies. We are not punishing or sanctioning them. We simply want

to ensure that all companies operating in Europe pay their fair share of tax like every responsible city and company is called on to do.

(END VIDEO CLIP)

ASHER: Here's why they want to change the system. Under current EU law, companies like Apple and Google and Facebook can funnel profits through low

tax countries like Ireland, where the tax rate is just 12.5 percent. Very favorable tax rate in that country. They can also use what is known as the

double Irish to avoid paying on the back. Paschal Cagni is here. He is chairman of the board of Business Finance. He also managed Apple's

European business from 2000 to 2012. Welcome. You are actually in a unique position to talk to us about this. Finance minister of France says,

listen, it's much better for its much fairer, rather to tax the revenue rather than the profits. Especially the revenue in the countries where

they generate sales. Do you think that is fair when he talks about fairness do you agree with that?

PASCAL CAGNI, CHAIRMAN, BUSINESS FRANCE: I think it's extremely important we finally get a healthy debate on how are going to handle that. Our

concept is to better to get in the corner and add penalties on the large gaffers. You want to define a very stable frame in which people can

operate. And that's kind of what we've been doing -- right. With the President Macron new leadership. It's about how we can welcome foreign

investments, which is what Business France is about. What many nations just see it as ambassador at large of the foreign investment is about.

Saying hey, guys we basically have a new framework, a new spirit, cultural shift. We want to welcome you out there, but let's define clearly the

rules of corporations.

ASHER: You know, I think it's interesting because businesses might be getting mixed signals from Macron's government. Because on the one hand,

he's trying to really change the French labor laws to make it more favorable two business. Basically, making it easier -- to put it crudely -

- to hire and fire people. But at the same time, this idea of possibly raising taxes and putting on revenues rather than profits, that also sends

-- that might send a negative message to business. How do businesses deal with a mixed messaging there getting?

CAGNI: Well, first I don't think the concept is to raise taxes. That's not about raising taxes. This is about defining a clear way of operating.

And to avoid trouble lawsuits and to getting date on things that are useless.

I believe that if there is one thing you can criticize what happened over the last months in France is the clear concept of France not only back,

France is not only about the reforming, it's about the massive transformations. We have, as you saw, a political transformation. Two

third of the member of parliaments change. You cannot today be both a mayor as well as a head of regents. You have to choose either or. Wishing

that you have got a new breed of politicians, right new kind of new fresh air which is coming in the landscape.

The second thing that we want to basically change is transformations about social. And that's what exactly you talk. It's about also how you avoid

or going to allow the companies to able to operate in an ever-changing environment. I was at Apple basically monitoring the unique positions

right, the change of the distributions. We need to basically abide by a new set of principles. In the meantime, want to be sure we maintain which

made France a different nation, which is our welfare states. We want to continue to be different of ordinary countries very encompassing countries.

[16:30:02] So I think what is that really about is to continue to change. But finally, maybe what you can see as a mixed message, are simply a

recognizing of who we are, and in the meantime really welcoming foreign investments. Increasing the French tech and entrepreneurs, welcoming

basically new money. So, that we can take full benefit of the distributions. That's what is at stake.

ASHER: OK, just give us -- just lay out the plan for the next few years in terms of optimizing the business environment in France. Especially in the

wake of Brexit, because London is losing its attractiveness in terms of a financial business hub. Paris has an opportunity here.

CAGNI: Yes, but you never win by basically having someone losing. So, it's about how we build with hot facts that on the 23rd of June last year,

the British people decided to basically quit Europe. It's how we're going not to benefit, but how we're going to basically give a solution to the

people which want to use typically France as the best entry gate to a massive fight for among this population. How we're going to use France to

offer the Middle East or the Africa. The plan is very clear. It's about essentially flexibility and it's about also reviewing the tax rate. And

it's really being welcoming about new ideas, talents to create new product.

ASHER: Mr. Cagni, on that note we have to leave it there, but thank you so much for discussion.

CAGNI: True.

ASHER: After the break we'll have much more news. Don't go away.

(COMMERCIAL BREAK)

ASHER: Hello everyone, I'm Zain Asher and this is QUEST MEANS BUSINESS. We'll get back to our Nima Elbagir in London. But first I just want to

give you an update on some of the headlines we are following for you at this hour.

A manhunt is under way for whoever put an improvised explosive device in an underground train in London. The device went off at Parsons Green station

during morning rush hour. 29 people were hurt in the blast. Police are calling it a terrorist incident. The British Prime Minister has raised the

threat level in the U.K. to critical. That is the highest level and means another attack is considered to be imminent.

The United Nations Security Council is holding an emergency meeting after North Korea launched a missile over Japan. Multiple top advisors to the

U.S. president earlier said that military options are on the table when it comes to the rogue nation. And that U.N. has strangle the North's economic

situation.

Human Rights Watch issued a new report accusing Myanmar of deliberately burning Rohingya villages near Bangladesh. They released satellite imagery

of villages where buildings have been destroyed. These images match similar findings by Amnesty International which calls the operation a clear

case of ethnic cleansing.

[16:35:00] NASA bid farewell to its history making Cassini spacecraft. A spectacular grand finale nearly 20 years after its launch. Cassini had

been in Saturn's orbit since 2004 studying the ring planet and its moons. But it was running low on fuel so NASA decided to let it take its death

dive into Saturn's atmosphere.

NIMA ELBAGIR, CNN CORRESPONDENT: Good evening from London. I'm Nima Elbagir. You're watching CNN's breaking coverage of the terror attack on

the London tube. The blast happened at a busy tube station during the heart of morning rush hour panic and chaos ensued as terrified commuters

ran for safety. A witness says several of the injured suffered bruises as the crowd fled. Nina dos Santos has more reaction to this latest incident

of terror in London.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE POLICE: We ask you to move 100 meters back, please. Guys, can we ask everybody move back.

NINA DOS SANTOS, CNN MONEY EUROPE EDITOR: Terror on London's tube. Commuters caught up in chaos as an improvised explosive device detonates at

the height of the Friday rush hour.

UNIDENTIFIED FEMALE: That bag is on fire.

DOS SANTOS: Leaving more than 20 injured and the entire city reeling. Ambulances rushed to the scene, treating many for burns and the effects of

trampling. Some of the victims included children.

SALLY FOLDING, WITNESS: It was bedlam and pandemonium on the train. Platform people were falling down and people were clearly injured. People

were screaming and crying. I found my colleague here from my school. She was further down the carriage and she actually saw the surge required cups

of water,

ALEX WELDON, WITNESS: People have obviously treated for burns. Either to their face or limbs. They have been wrapped in cling film. And we can see

that the skin is red raw.

DOS SANTOS: The device stored in a bucket in a plastic bag and fitted with a timer was intended to cause greater damage.

This is the fifth attack on British soil so far, this year, with four of those events taking place inside the capital. What's different about the

events in Westminster and London Bridge from what happened in Parsons Green is that this wasn't an attack on tourists and Saturday night revelers. It

was commuters and people taking their children to school who were caught up. And that's left the community in this affluent west London suburb

shell shocked.

For local resident Katy Llewellyn Jones, this is the second time she's seen terror up close after finding herself in London bridge, on the night of

that attack in June.

KATY LLEWELLYN JONES: WITNESS TO TWO TERRORIST ATTACKS: It's frightening they've been able to attack so many times. And you don't have a sense of

it not stopping. That is quite -- is really concerning.

DOS SANTOS: The scenes at Parsons Green are a reminder of vulnerability of London's transport network. one of the busiest in the world and vital to

residential neighborhoods like these. It was last hit 12 years ago, when 52 people lost their lives in four suicide bombings. A manhunt underway to

find the individual behind this attack and once more, security will be stepped up. Nina dos Santos, CNN, in Parsons Green, London.

(END VIDEOTAPE)

ELBAGIR: This is, of course, the latest in a string of terror attacks in the U.K. In March, a car struck a group of pedestrians on Westminster

Bridge, then stabbed a police officer, five people including the officer were killed. At least 40 others were wounded. Police shot and killed the

52-year old attacker.

On May 22nd, a suicide bomber killed 22 people and injured dozens more at the Manchester arena after an Ariana Grande concert. In early June, a van

plowed into pedestrians on London Bridge. The three attackers then went after innocent civilians with knives killing eight people before they were

shot and killed by police.

June 19th a van plowed into Muslim worshippers killing one person and leaving nine others injured. Peter Newman heads the International Center

for the Study of Radicalization at Kings College in London, and says this has all the hallmarks of an amateur attack gone wrong and joins me now from

our London studio.

Peter, thank you so much for coming on the program.

PETER NEWMAN, INTERNATIONAL CENTER FOR THE STUDY OF RADICALIZATION, KINGS COLLEGE. Thank you.

ELBAGIR: Let's start there with your analysis that this has the hallmarks of an amateur attack gone wrong. I suppose the question is why you think

and whether that matters when it comes to the way that Londoners feel in the aftermath of the attack, should they feel safer because it was an

amateur attack?

NEWMAN: That is hard to say. It was pretty amateurish. If you look at it, it didn't go off in the right place or even properly go off.

[16:40:00] It clearly was meant to have a lot more impact and almost certainly not meant to go at Parsons Green, which is not particularly

important place in London. And so, in that sense, the people who were injured were the unlucky ones, but it could have been much worse and yes,

amateur attempts are more difficult to detect, but they also typically tend to kill a lot fewer people. And it kind of confirms that whether this was

Islamic state or another group, that some of these groups that are very professional in some respects still have managed to penetrate the U.K. to

the extent that perhaps they would have wanted to. That's perhaps the good news, despite all the bad news today.

ELBAGIR: And just quickly, Peter, when you hear the prime minister say that threat level has been raised to critical, we know that means that they

believe an attack is imminent but what does that mean in practical terms? Does that mean that those who are on the run are planning something or is

that just simply that when you, you know, when you point light into dark places then all the creatures tend to scuttle out at once?

NEWTON: Yes. I think it means, it allows the government to deploy soldiers on the streets of London and that means that the police are

currently overstretched. There are probably hundreds of people looking at CCTV video footage and they need these people to do that, and for other

people to guard places across London. It also means that there is a suspicion that there may be other suspects out there and perhaps this isn't

the work of a single person, but there are other people that still need to be discovered.

ELBAGIR: And we also heard, Peter, from the Islamic State as ever claiming in the aftermath of an attack that they had an involvement, how credible is

it at this point? They seem to do this every single time?

NEWMAN: Yes. It came very quickly. It contains a lot of information that doesn't make sense in light of what we've seen so far but it doesn't

contain any insider knowledge, so it's not clear whether the Islamic State did know about this attack, whether they are in touch with the attackers,

whether this was an operation that was directed by Islamic State. All of that I think we will only find out within the next 24 to 48 hours. And

that information will probably not come from Islamic State but from the police.

ELBAGIR: Peter, as always, fascinating to have you on. Thank you so much. Now --

NEWMAN: Thank you.

ELBAGIR: Back to Zain Asher in New York.

ASHER: All right Nima Elbagir, thank you so much. Still to come on QUEST MEANS BUSINESS, residents on the Caribbean islands talk about their

shattered lives and the hope they have left in the aftermath of hurricane Irma.

[16:45:00] (COMMERCIAL BREAK)

ASHER: Welcome back. Aid is trickling into the islands of the Caribbean but many are packing up and leaving their shattered lives behind. CNN

teams have been across the Caribbean covering the devastating aftermath of hurricane Irma. Our Sara

spoke to residents on St. John Island in the U.S. Virgin Islands.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT: This is or was a famous historic lookout point. It's the Chateau Bordeaux restaurant where tourists and residents

alike spent time taking a look at the beautiful views here in St. John. Well, those views are gone.

LEAH RANDALL, St. JOHN RESIDENT: We're supposed to be America's paradise and look what it looks like.

SIDNER: Leah rode out hurricane Irma in a hurricane bunker with her fiance. When she emerged from safety she was awe struck at the view of

their beloved island of St. John.

RANDALL: I don't think that people really understand the level of devastation we have. We feel we are living in a war zone and a nuclear

bomb went off.

SIDNER: Now the shock of it all is subsiding.

UNIDENTIFIED MALE: I'm sorry.

SIDNER: And the tears are beginning to flow. As neighbor greets neighbor to commiserate. For Leah and her fiance the storm snatched away their

charter business and their dream home, a wooden boat named Buxom 2.

LEAH: I looked at pictures of Buxom, it's unreal to think that -- anyway, sorry. All the stuff we had on there is gone. We only had like three

suitcases.

SIDNER: From the ground, it's clear things are bad here, but once you get higher on the island the true scope of the devastation comes into focus.

There is damage just about everywhere and it's not just homes that are damaged, but take a look at the infrastructure, nearly every light pole is

pushed over in some way, not a single one standing up straight. Kind residents offer to drive us from Coral Bay to Cruz Bay on the other side of

the island for a time the scene just kept getting worse and worse at every turn.

Johnny B, has lived, on St. John for 20 years. Life he says was easy here and laid back.

JOHNNY B., ST. JOHN RESIDENT: I got to make a choice, I mean this is going to be a hard way of life compared to what it was for 20 years.

SIDNER: Then the storm hit. The next day, chaos ensued.

What happened in the first day or days after the storm that surprised you or disturbed you?

JOHNNY B.: Looting. A lot people I didn't expect to do it were doing it. And it wasn't time for desperation yet. It was the day after, there was no

reason for it. I think it was grossly -- it was just gross.

SIDNER: Police have moved in to quell the security issue, but the most needed supplies are still just trickling in. A week after hurricane Irma.

In Coral Bay, most of the supplies are shipped in by private individuals from St. Croix. Just about everyone needs something here including the

famous wild donkeys of St. John. They, too, are survivors of the storm. Left to forage what little vegetation is left.

JOHNNY B.: It's just disbelief. You know, it's hard to believe. We all lost something in the storm, a lot of people lost everything.

SIDNER: Life used to be easy on this island very laid back and now people realize how hard their lives have gotten. People who are asking what is it

we can do to help St. John and other islands dealing with devastation, they need things like generators because power is completely gone here.

It's dark. They also need a communication tower so they can try and get supplies in and out and the things that they need. But those things are

hard to come by on this little tiny island.

(END VIDEOTAPE)

ASHER: Facebook is back in the spotlight is back in the spotlight for pretty much all the wrong reasons. Social media platform pulled a highly,

highly controversial advertising tool. We'll explain, details after the break.

[16:50:00] (COMMERCIAL BREAK)

ASHER: Facebook disabled a feature that allowed advertisers to target anti-Semites.

The social media company is already under fierce scrutiny after admitting it sold $100,000 of ads to a Russian troll farm during the 2016 U.S.

presidential election.

Laura Segall joins us live now. This is incredible. Seems as though Facebook knows about you and me and so much about us, but doesn't seem to

know that much about the people buying ads. How is that possible? How do they not have a tool to prevent this already?

LAURA SEGALL, CNN SENIOR TECHNOLOGY CORRESPONDENT: I think this is a frustration, we are all looking at Facebook and saying, don't you know the

power of your platform and we are seeing all of these interesting things like the fact that they sold $100,000 worth of ads to a Russia troll farm.

Now a ProPublica report comes out says essentially, they were able to target people who used the word Jew hating n their profile and they were

able to target in that way.

And so, Facebook what they said is they've made it so you can't do that, can't target using anti-Semitism, but it's like ask forgiveness not

permission. It is a little bit too late so how far do we go? I think the big question about the Facebook advertising the ads sold to Russia is what

was the extent of this? Where were they targeted. We still haven't seen the ads. What do they even look like? Was this just the beginning.

I think we're going to begin to hear more and more from tech companies about this, we saw a report come out not a couple hours ago that people

were using the same advertising targeting via Twitter. It will be interesting to see how the tech companies will try to build these tech

tools we wish they would have built or acknowledged before ProPublica or before it was a little bit too late.

ASHER: So, Facebook isn't the only one dealing with trouble. Also. Twitter. I understand you've been speaking with former CEO Ev Williams,

just about how that company has had to deal with fake news, massive problems, last year at least.

SEGALL: I had the opportunity to sit down with him and I was surprised by how candid he is. He's doing a lot of soul searching. He's still on the

board of Twitter and now has a company Medium and talked about the misinformation problem. He talked about Facebook and Twitter and he said

it's complicated. What he said I thought was interesting was it all comes down to money. Take a listen.

(BEGIN VIDEOTAPE)

EV WILLIAMS, CO-FOUNDER, TWITTER: The difference between a difference of opinion or political belief and a difference like wrong facts really hard

to assess out and I don't think anyone has figured out how to assess that out automatically and that's when some people calling for there needs to be

editorial guidelines and you get into an area where most tech companies feel like that's not something that really fits in our model, or that we

would be good at.

SEGALL: Increasingly, you guys whether or not you like it have to make decisions that are kind of editorial, wouldn't you say?

WILLIAMS: I think the fact that tech companies have to accept is that there are judgments being made all the way down the line. There's

judgments about how the algorithm, what the system values, what the feedback loops are. And in my opinion the most nefarious feedback that

drives belief and misinformation on the internet and media in general is that it is all driven by advertising and it is all free and attention is

valued. And if you can generate attention then you can get paid and, you know, you

Don't get paid more if it is attention based on someone consciously chose to pay attention or you scream fire in a theater, you still get paid. And

so most of fake news some of it was driven by ideological beliefs, a ton driven by people just making a buck on ads.

[16:55:00] And who is sending them money? The major ad platforms, the tech companies, and that is a fundamental problem with our information ecosystem

is attention gets rewarded not quality of information.

SEGALL: Even the fact that this report came out on Facebook right that they sold ads to --

WILLIAMS: Yes.

SEGALL: The Russian associated group.

WILLIAMS: Facebook is filled with crap ads. Besides Mark Zuckerberg's post, ads paid for and sold by Facebook that were rip offs of like CNN and

ESPN selling supplements that I am sure were [ beep ].

SEGALL: But it is even taking it to another level though, because it is selling an election, so therefore these -- people are now calling for

Facebook to put out these ads to show what they look like for transparency? Do you think they should do that?

WILLIAMS: I haven't thought about that in particular but I think -- the thing we should acknowledge is that anyone selling ads, these ad driven

platforms are benefiting from a lot of the fake information and misinformation in these campaigns and they also benefiting from people just

generating attention at pretty much any cost. That's the thing that this I think is the most broken thing about the information economy we live in and

is driving tons of the behavior.

(END VIDEOTAPE)

SEGALL: You can see he was candid about the issues that they are facing, I think they are also going to be looking at what bots did on Twitter and the

spread of misinformation using these automated artificial intelligent bots. We will hear about that as well soon.

ASHER: Defining fake news is a huge problem. Laurie, thank you so much.

And that is QUEST MEANS BUSINESS, everyone, I'm Zain Asher. The news continues right here on CNN.

END