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QUEST MEANS BUSINESS
Mnangagwa: New Democracy In Zimbabwe; Uber Pays Off Hackers, Stay Silent; Tension In Middle East
Aired November 22, 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] RICHARD QUETS, CNN ANCHOR: Look at the way they move, out of their World Cup. And look at the way they move, oh yes, forgetting
demonstration on the audience but let's see how they do when it comes to the bell. Hit the bells with fervor and over, 1, 2, 3, there we have 3
strong gobbles that brings fate into close on Wednesday, November, the 22nd.
Tonight jobs, jobs, jobs, Zimbabwe's president waiting vows to remake his country's economy. Uber's secret hack comes back to bite its new chief
executive and not so fast says the U.K. Chancellor for depending for slower growth.
Now, live from Abu Dhabi in the gulf, I'm Richard Quest and I mean business.
Good evening. Tonight, Zimbabwe's former vice president said the country is witnessing the beginning of a new democracy. Emmerson Mnangagwa
returned from exile, he was the former vice president. On Friday, he will become the interim president as he takes over from Robert Mugabe.
(BEGIN VIDEO CLIP)
QUEST (voice-over): Now, speaking to supporters in Harare he promised to make the economy his top priority. However earlier in the day --
EMMERSON MNANGAGWA, INTERIM PRESIDENT, ZIMBABWE: To all genuine periotics department, we come together. We awake together. No one is going within
the army (inaudible) to Zimbabwe. We want to run economy. We want peace in our country. You wanted jobs.
(END VIDEO CLIP)
QUEST: Now earlier in the day, he met the South African President Jacob Zuma in Pretoria. Mnangagwa will be sworn in as president, as the interim
president on Friday.
He said that Zimbabwe needed support from outside Africa. The British Prime Minister Theresa May says that Britain would back the new government.
(BEGIN VIDEO CLIP)
THERESA MAY, BRITISH PRIME MINISTER: We want to see a democratic free secured Zimbabwe where people across community, if from communities across
Zimbabwe are able to carry out their night without fear, without depression and we want to see that concrete rejoining the international community.
We have publicly provided from support to Zimbabwe in terms of U.K. aid. And as their oldest friend, we will do everything we can to support their
change into a country that is free, that is democratic, that is free of all oppression for all community.
QUEST: Lord Robin Renwick was in the involved in the Lancaster House Agreement in 1979. But three months in London both sides of that all sides
work out a legal deal to give birth to modern Zimbabwe.
I spoke to Lord Renwick he remembers the Lancaster House talks in great detail.
ROBIN RENWICK, MEMBER OF THE HOUSE OF LORDS: I was locked in Lancaster House for three months with Robert McGarvey and Emmerson Mnangagwa, and
McGarvey kept telling me that power comes from the barrel of a gun and I had a Ph.D in terrorism.
Mnangagwa even then was a tough guy but a much more pragmatic practical kind of person. He actually wanted to achieve an agreement, and he played
a positive role during the cease fire in the elections in Zimbabwe.
QUEST: So you have heard Mnangagwa tonight speaking, he talks about a new democracy for Zimbabwe everybody must come together and be as one. Do you
RENWICK: Well, he has a very different character to McGarvey. McGarvey was more of slightly mad doctor tyrant with a murderous vent. And one of
the people, as you know, there was an attempted murder attempt on Mnangagwa himself in August when he was poisoned with thallium, had to be
hospitalized in South Africa and was lucky to survive.
Now, as for Mnangagwa he will try to do things differently.
[16:05:00] He knows and he said several times that he has to try to break out from Zimbabwe's isolation. He has to try to get investment back into
Zimbabwe if he is to make any improvement in the economy. And he will try for an improvement into the economy.
Now, we should judge him by his actions. So he's serious than he ought to try to form a government of national unity. He ought to consider inviting
the opposition leaders, for instance, like Tsvangirai and Tendai Biti to join the government.
QUEST: Yes, I get it that he is different when having been next to Mugabe for 40 years. And, indeed, in the land reforms of the '90s, you know, many
say he was responsible for much of the stealing of the land.
So how do you square that circle other than rubbing the rail of politic that it is the president, is all we've got. Therefore, we have to hope for
RENWICK: No, it's not just that. You're absolutely right. He has been an extremely tough Mugabe henchman for four decades. But I've known him on
several occasions where he didn't agree with what was happening and he actually, you know, when it came to seizure of all the agricultural land,
he told me he thought that was a terrible mistake. He still did what he had to do, of course, otherwise he wouldn't have survived.
He is much more pragmatic than Mugabe. Mugabe was pushing an agenda of his own mainly to stay in power until he died. That was his overwriting
objective which has now not succeeded.
But Mnangagwa will try to get investment back into the country. He will try to reduce Zimbabwe's isolation. He'll also try to hold on to power.
So he has to be judge now by what he does. Will he, for instance, invite Tendai Biti? It was the first task, finance minister, back into the
government to try to help. That would be a good sign whether or not they accept and so on.
The country will be running towards elections. Elections must be held. There'll be 11 observers if there's election and we'll see if they are
different to the elections which Mugabe has been stealing for the last 15 years.
QUEST: Let me take you back to Lancaster House and those three months of negotiations. And, at the time, did you pretty much know that Mugabe would
win the next election after Lancaster and the defectively any hope of Democracy was going to be a follow-up?
RENWICK: We thought he would win the largest number of votes because he represented the Shona population which is the majority population.
Now, because we helped to organization a free and fair election and it was one in 1980. That moderated him for quite a while. And his almost his
hold on power wasn't seriously threatened, he didn't -- turn into this ultimate (ph) tyrant the then became.
What he did do was organize a repression of Ndebele, Matabeleland land, really bloody repression. And that was, you know, a huge warning signal
for the future. But he still have majority support in Zimbabwe up to 1980. In the last 20 years, we'll say, he set no legitimacy, whatever.
QUEST: Robin Renwick, who worked and met and negotiated with and the man almost years ago.
Farai Sevenzo is in Harare tonight.
Farai, now let's take this point by point. The way Mnangagwa addressed the crowd and talked about a new day of Democracy in Zimbabwe. Now, of course,
everybody wants to actually see what that means.
FARAI SEVENZON, CNN CORRESPONDENT: That's absolutely right, Richard. I mean, you know, the day after the night before was a very so great day with
all of this Christians being asked about way this will go. And, of course, everyone was waiting for the new man to arrive. And he did.
And he gave a couple (ph) of speech surrounded by very heavy security, lots of bodyguards around him. Because, of course, one of the points of his
speech was that -- there was several attempts to kill him. He mentioned about a poison on August 12.
He mentioned that someone had said in Shona -- he was speaking in Shona, that somebody had say that they want to crush the head of this big snake.
And again, in Shona he said, "I wondered now who's head has been crushed".
It was a speech about telling his (inaudible) faithful that he's back. So really talk about national transition or a government of national unity or
a government of all talent is very far at the moment.
[16:10:02] It seems he did it again -- again speaking in the local language of Shona in his very -- a particular Karanga accent. He say, "The
(INAUDIBLE) of train is moving ahead and those who don't want to come on board can just stay outside and bark and bark and bark. But we are going
on. And we are going to carry on ruling this country".
So, it was -- message to the party people, Richard.
QUEST: Right. But he did also say that he needed help both internationally and regionally, and he said it was a case of jobs, jobs,
Now, he must be aware that his number one priority perhaps in his view is to -- besides, holding onto power for him and his party is to restore the
SEVENZON: You are absolutely right again, Richard. The economy is in dire straits. We have a system where everyone is using the United States
dollar. But -- and of course, the jobs that he's taking about, we saw the young people yesterday. Many of them are clever graduates with no
prospects, no jobs to go to.
And that is what he's trying to -- to get. And he also mentioned that he's been talking -- it is a names, but he's been talking to international
partners about what the way forward. That he met Jacob Zuma that he spoke to the former Tanzanian president, and they all very encouraging noises
being made about reinvesting in Zimbabwe.
QUEST: Farai Sevenzo joining us from Harare. Thank you, sir.
Now, tensions between three Middle Eastern countries are (INAUDIBLE) tonight, and the heart is the Lebanese prime minister, who today decided to
put up his resignation at the request of Lebanon president.
If Saad Hariri returns to his job or he doesn't leave his job, it could spark retaliation from Saudi Arabia which has huge economic leverage over
And you may well ask, why? The Hariri-led a government that included Hezbollah, the Shiite movement which is an ally of Iran, Saudi Arabia
claims that Iran is using Hezbollah as a proxy in regional conflicts. John Defterios joins me.
So, that's the scenario of why. But if Saudi wanted Hariri to resign when he was in Riyadh, which he did. Saudi will not be best pleased that he's
reconsidering that resignation. Now he's back in Lebanon. Will they?
JOHN DEFTERIOS, CNNMONEY EMERGING MARKETS EDITOR: That's a fair comment because, you know, Mohammad Bin Salman, the new crown prince of Saudi
Arabia, muscled in. You had Hariri in Riyadh. You saw the distress on Hariri's eyes. Said his life was under threat and looks like the cloud is
lifting, because it's been a very dark political and economic cloud over Lebanon today.
But we have to take -- step back, Richard, and see why the crown prince intervene. This is his second proxy war in the region. And why tensions
are so high.
I think it's fair to say, the highest tensions since I lived in the region full time for seven years. Proxy war in Yemen, it's going on for three
years. Saudi Arabia, the UAE, and others in that coalition not willing to give up. They're drawing the line with Hezbollah in Lebanon today.
But if you look at the bigger picture in the optics, you had Hariri sitting down with the Speaker of Parliament and the president, Michel Aoun, are
both allies with Syria. And then you look at what's going on in Sochi, President Putin, Rouhani, and Erdogan, the game is over in Syria.
So Saudi Arabia is trying to muscle in saying, we're not going to let Hezbollah and Iran have this influence over the region. But the optics
tonight, it looks like Hariri is willing to sit down and try to reconcile with Hezbollah and others in that coalition.
QUEST: I don't mean to be dismissive of what's obviously a very serious situation.
DEFTERIOS: And a very complex --
QUEST: I thought -- that's given. But, the -- it is farcical when a prime minister resigns while visiting a third country. Heads off to a fourth
country before coming back to his original country, is not an origin, and says, oh, I'm not going anyway.
DEFTERIOS: Yes, this isn't -- the odd twist here is that it seems to have rallied and unified --
QUEST: Why is it not?
DEFTERIOS: But it seems to have rallied and unified Lebanon, because the biggest worry here is that Lebanon was going to collapse. In fact, three
weeks ago, Richard, we had a situation where there was a mini bank run taking place in Lebanon because of these tensions.
You know, the central bank that you've met before, Riad Salameh, has been in place for a quarter century. Now that he's back in place, now that it
seems to be daylight with negotiation, it takes the second proxy war off the table. This is quite serious. We've gone to the situation now where
many thought -- we can see Saudi Arabia and Iran escalating in Yemen and Lebanon, and where does this stop from there? That's why it's a concern.
QUEST: Oil. I looked at the price of oil today. And Brent service $62- $63. And West Texas is just slightly under match as it is now.
[16:14:59] And the money in this part of the world must be flowing again, maybe not in a copious amount, but -- obviously, at a hundred.
QUEST: But, it certainly ease the budget deficits on countries like Saudi, and the UAE, and Qatar.
DEFTERIOS: Well, it's the new Goldilocks with (inaudible) not too hot, not too cold. It means $65 a barrel is ideal for these countries because they
produce for $2 to $6 a barrel. They brought the budget deficits down but entirely.
For example, last year is Saudi Arabia, the budget deficit was 16 percent to bring it down by half in 2017. But there's a growth problem at the same
time, Richard, we have to watch this. The big gulf producers that rectify their budget deficit has been grow half a percent in 2017, Saudi Arabia
only 0.1 percent.
We're looking for this other chart up, most concerning for me over the next five years, the growth is going to be for the oil producers in the broader
Middle East, just 2.8 percent. It roll back three to four years ago, they're growing 6 percent. So the growth is not strong as the lingering
effects of that shock in oil prices, although as I suggest, it's now you can call a new Goldilocks I think is fair.
QUEST: Not too hot, not too cold.
DEFTERIOS: Just right.
QUEST: Except the weather. Well, I don't want to describe it as the Goldilocks now, I told you.
DEFTERIOS: Is this prime time in Abu Dhabi, 30 degrees is good for us.
QUEST: That's not in old money, 30 degrees that's about 18 -- John Defterios.
QUEST: As we continue tonight after the break, Uber's new boss is the old guard under a bus and for good reason. The company has been caught off
guard with paying off hackers, and keeping quite about it. We will continue in QUEST MEANS BUSINESS from Abu Dhabi.
QUEST: Welcome back, QUEST MEANS BUSINESS. Uber's new Chief Executive trying to atone for the sins of his predecessors as the company (inaudible)
Uber paid off hackers and didn't tell anybody about it. Well, not only that they did not tell anybody that they paid them off. They didn't reveal
that there have been hacked in the first place. It all happened when the company was under the control of Travis Kalanick.
Now, the cover up involved details of 57 million people. They were the riders and the drivers that were involved. It's a cover up of
extraordinary proportions. Uber then says, reveals, it now paid $100,000 to the hackers to delete the data. The British regulators have expressed
too much concerns, the New York State Attorney General's Office is also looking into it.
Samuel Burke is in London and joins us. Samuel, the issue here is what, the hack or the payment off?
SAMUEL BURKE, CNN CORRESPONDENT: I cannot think of another story like this where the most alarming part is the behavior not of the hackers really, but
the behavior of the company.
[16:19:58] What's most surprising here two main points, they attached on number one, it actually the fact that they didn't disclose. They have an
obligation, arguably a legal obligation in many states in the United States and many countries around the world where is there obligated to say
something so that the regulators can come in quickly and decide what can be done to help the consumer.
But more surprisingly, my jaw dropped when Uber said they paid the two hackers a $100,000, I was shocked when they actually confirmed this to me.
I spoke to the CEO of an Israeli cybersecurity firm who just deals with these types of situation. And he says, the first thing that he does is
tell people, don't pay the hackers or they will come back for you.
But, Richard, it's not illegal to pay the hackers, so they may not have broken any laws and they did that, but they may have made it worse for
themselves, for you, for me, for all consumers.
QUEST: All right. But hang on a second, hang on, the malware cases that we had. People paid off them when we were told not to do that, but quite a
few people paid to get back control from their computer.
Now, I can see an argument that says, it's a bit different if you're a major corporation, but the hospitals that paid to get their computer
systems back up and running again.
BURKE: Yes. And again, it's not illegal, they didn't break any rules in doing that part of it though I spoke to one lawyer who said, when they ask
the hackers to delete the evidence, in this case, deleting the evidence actually might be a crime. We'll see about that.
But yes, many people have been in this position, many individuals, many businesses have paid, but all the experts will tell you, just like so many
situations, you don't want to pay the kidnapers or they'll kidnap somebody else's kid, you're part of the vicious cycle there.
QUEST: All right. So, the new CEO has basically having thrown the old one under the bus, and in the process, basically said I'm responsible but I'm
not to blame. He wants to have a good relationship, Dara Khosrowshahi, the new CEO with the old CEO, and I think that's getting harder and harder to
do given these types of situations and looking at the behavior that he is discovering day by day.
Let me just put up on the screen what the new CEO said, Dara Khosrowshahi, quote, "None of this should have happened and I will not make excuses for
it. Well, I can't erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes.
So not falling on his sword but falling on the sword the previous CEO, but at some point, you wonder how much a time that he have until it starts to
tarnish him as well. I think he's got a lot of time before that happens. But given how much we have seen coming out of this company, some days you
might see a good headline but then right away, it gets bury by a day like this.
QUEST: Samuel Burke who is in London with the Uber story on that side of it. Now, Uber is still struggling to open up key markets including here in
Across the Middle East, that spot has been filled by company called Careem, the cofounder says focusing on specific needs in individual cities, those
needs specific to this part of the world, a key to the success rather than a one size fits all.
MAGNUS OLSSON, COFOUNDER, CAREEM: We started here in the region first, and I think that we're seeing globally as well, is that in many regions of the
world, the regional players are being very successful. And I think the answer is, the reason for that is the same across the regions, that it's
really about catering (ph) to the local needs.
There are quite significant differences between markets, and even between cities. You know, Abu Dhabi is quite different than Dubai for example.
QUEST: In which way?
OLSSON: In the demographics of the customers that live here, in the setup of the supply side, the type of limousine companies that are breaking in
the setup of the captains that are working, in addressing payment penetration incidents.
QUEST: I also now just received the other higher class of car as your basic car here in Abu Dhabi.
OLSSON: It's different per city. In the UAE, most of our cars are Lexus cars, so they are definitely a bit more premium, yes.
QUEST: But you -- because that what people expect here.
OLSSON: Yes. And it's also has to do also with the local regulation that has requirements on what car are allowed to operate.
QUEST: And you have price searching, or pick pricing as you call it, which is -- I can understand the economic from your point of view, but it's not
particularly well liked by the consumer, is it?
OLSSON: Yes. I think in our case, we are operating what we call dynamic repeat pricing, so that the price differs a little bit over the day with us
to find them out. And ultimately, we're trying to deliver on the promise of, you can always get the car with us.
[16:25:03] Now, yes, customers don't like to have -- they like to know what the price is because we're trying to minimize as much as possible by
improving our algorithms and predict that we don't have to use the pricing but rather get more captains on the roads at the right times.
QUEST: Finally, you've got a system that works, it's very successful. It does what it says it will do and it studied from the (inaudible) times
inside being in the region. Where do you expand it next beyond your Morocco to Pakistan? When -- or if, do you go further North up to Europe
and across eventually to the United States? Or, is this one of the things where, you don't need to, so why bother with the headache?
OLSSON: Yes. So we define our region as Morocco to Pakistan Commission, and in that broader region, it's about 700 million people, those are 10
percent of the world population. And we are -- so far we are in 80 cities but we believe that there's upward of 200 cities that could use a service
like ours. So we have a lot more work to do in the region before we are anywhere close to penetration.
QUEST: The Careem CEO talking throughout (ph), the cofounder talking to me earlier and I will be using his app to get home this evening, I call the
car trans up on time.
On Wall Street, the NASDAQ powered an all time high boosted (ph) by a rally in oil prices, where we're talking with John Defterios. And the Dow was up
64 points just a quarter of a percent, from cheating from its record close on Tuesday. The feds warning us set sudden market pull, for the U.S.
economy, and that could be also finished low. Markets are close now with over in the -- there you are, red on the lighting, the record 61 for the
Dow, 55 for the S&P.
And as you can see in the middle, it's only the NASDAQ with it's yellow showing that that's old time high. Markets are closed. U.S. markets are
close tomorrow Thursday for Thanksgiving.
And the European markets, that majors were down, mostly in the red foot, it was in the exception hedging higher. It was the government unveiled its
The worst performance, down 1 percent was the DAX, and this might be the first evidence, like the political crisis for Angela Merkel is taking its
tow on the markets and the economy. Until now, the view had been that the markets were not -- would not show much of a reaction on the fact that
Germany is seemingly radiolus as they try to form a new government following the indecisive election.
The British (inaudible) he wielded the famous red leather suitcase and it could one thing. It was budget day in Britain.
[16:30:11] RICHARD QUEST, QUEST MEANS BUSINESS ANCHOR: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a moment.
When Britain's Financial Secretary of Treasury admits to be merged, we don't know. He doesn't know yet how Brexit will end. And Pixar's new film
is in the cinema as it passes on a leave of absence after taking missteps.
Before we have any of that, you're watching of course CNN. And on this network, we guarantee the facts always come first.
Zimbabwe's former vice president has returned to the country where on Friday he will be put -- serve as interim president. Emmerson Mnangagwa is
to sworn in the so-called Crocodile (ph) told cheering crowd, the will of the people will always succeed. And that we want jobs, jobs, jobs,
repeated accusations that the regime poisoned him in August.
The former Bosnian Serb Commander during the 1990's oversaw the bloody siege of Sarajevo and the massacre in Srebrenica has been convicted of
genocide and crime against humanity. The International Tribunal Court in The Hague, Ratko Mladic guilty on 10 of the 11 war crimes charges that he's
facing. He's sentenced in to life imprisonment. Mladic's lawyer said he will appeal.
Dramatic footage now shows the moment when a North Korean soldier made a daring escape across the border with South Korea. The video comes last
week shows him running as fellow soldiers passing about 40 times which has a five times because of five times requirement extend to sergeant. The
soldiers tend to be doing (INAUDIBLE).
Argentina's Navy is dismissing rumors that made contact with the missing submarine. The Navy spokesman said three flares (ph) reported on Tuesday
in the South Atlantic were also lost. The submarine is missing for a week. The 44 crew members on board could be running out of air.
Facebook embedding a tool that let users see if they've interacted with any Russian trail accounts. It will be available in the help center by the end
of the year. They believe (ph) those people need to understand how foreign activity tried that distressed around the U.S. 2016 in a presidential
"Britain is the world's sixth largest economy", those are the words of Chancellor of Exchequer as he unveils his budget. It sounds impressive,
but not so when you remember that Britain used to be the fifth largest, is now been overtaken by France.
Philip Hammond also dramatically cut the UK's borrowing caused the UK's growth forecast, it chops 2017 and 2019 by around half of percent. And the
chancellors sent a warning so then he says insisting the UK remains a palatial (ph) house of finance.
(BEGIN VIDEO CLIP)
PHILIP HAMMOMD, CHANCELLOR OF EXCHENQUER: Britain is the world's sixth largest economy. London is the number one international financial services
center. We have some of the world's best companies at a commanding position in a raft to tech and digital industries that will form the
backbone of the global economy of the future.
Those who underestimate Britain do so at their peril.
(END VIDEO CLIP)
QUEST: Bianca Nobilo is in London. As budgets go, this one was muted on tax, but it sort of had some very dower (ph) overtones about Brexit.
BIANCA NOBILO, CNN PRODUCER: Yes. Definitely the takeaways would be in the fact that this gloomy flashes of full cost. So, productivity is still
a huge problem. We knew it was a problem in the UK. But it's causing growth to depreciate through out the coming years. It's a first time in
London history that there hasn't been a two percent full cost in growth somewhere in the next five years.
Also, it was over shadowed by Brexit. I've speaking to Minister today in Westminster. And she was saying that it's like a cloud hanging over
parliament because, of course, it's really starting to impact business confidence now.
In fact, I spoke to the head of the CBI, one of Britain's biggest business groups. And here is what she had to say.
(BEGIN VIDEO CLIP)
CAROLYN FAIRBAIRN, DIRECTOR GENERAL CBI: I think this is -- is being listening too. But anxiety remains very, very high that this is not enough
certainty. There is not enough clarity around whether there will be a transition period around the shape of the final deal. And it's affecting
investment now, it will affect jobs in the future.
We think 60 percent of votes would have implement contingency plans, taking jobs out of the U.K by March of next year.
[16:35:03] So, the biggest priority is in the upcoming European Council in December. We must see a breakthrough around transition being committed to
and also moving onto trade talk's in the New Year, very, very urgent now.
(END VIDEO CLIP)
NOBILO: So, it's hard for the chancellor to try and cost a really upbeat tone about the future of U.K economy when business is so concerned. To be
honest, Richard, Philip Hammond had a very weak hand but he played it well. He did the best that he could do with very small amount of political and
economic wiggle room.
QUEST: And was there any sign in the postmortem, any sign of the sort of own goals that has happened in previous years whether or the pastry tax or
last year on the national insurance for self -- for the self-employed. Any sign that anybody has found that they shot themselves in both feet?
NOBILO: Well, every year they do dissect the budget that media, pundits and groups. To be honest, Philip Hammond did a very good job because the
only real own goal it seems to come out. And it's not so much an own goal, it's just about the fact that that chancellor said that he wouldn't be
charging stamp duty on anyone buying a house that cause less than 300,000 pounds. It turns out that looks like a bit of gimmick, but really, that's
all that's capturing the media's attention.
We shouldn't be that surprise, of course, because the chancellor is known to being incredibly thoughtful, very considered, his nickname in the
British media is "Spreadsheet Phil" because he likes attention to detail. And indeed, he even made fun of his quite boring reputation when he was
delivering the budget today. He made some quips about wanting children to learn math, devoting money to that so that Britain could lead the
And he said that people might think he's boring, but he knows how to give the British public a good time by bringing them more mouths which he found
QUEST: And, of course, he drunk water today, didn't he, I believe? And in one occasion when you are allowed to drink alcohol in the chamber, the
chancellor is allowed to have booze and he delivers his budget. But I think today, he drunk water.
NOBILO: He did. He looks at the beverages that were out there for him. And he said he was tempted by something more exotic, but he stop to the
mineral water like the last three chancellors before him. Kenneth Clarke like to have a whisky, Denis Healey like to have a brandy. So, there is
this long tradition.
And I think that's just a testament how all Jewish in stressful delivering the budget in. There's so much pressure on the chancellor. The opposition
is rearing to go and it really does set the goals for the future of the economy.
QUEST: By my reckoning, it's 9:30 in the U.K which means that you got time to get out before last August, and have a better yourself. Bianca Nobilo
joining us from London.
As we continue tonight, the British chancellor says Brexit negotiations are the critical phase. Now, Philip Hammond has promised to set aside nearly
four billion dollars in preparations to live the European Union.
He says nearly a billion dollars has already invested vowing that the government is prepared for every possible scenario. The UK's Financial
Secretary of the Treasury, the number two to Philip Hammond says that Britain remains one of the most attractive places on earth to setup the
business. I think it's the number three behind the chief secretary to the treasury.
But, anyway, I asked him to join me from Westminster. And today's budget is a sign of weakness. By time when the prime minister is doubling the
Brexit divorce bill.
MEL STRIDE, FINANCIAL SECRETARY TO THE TREASURY, UK: The negotiation with the European partners will proceed. And we are determined as you know to
make sure we get a very good deal for our country. But we have also said that we will pay the appropriate or fair amount as we exit. And then move
on to trade negotiations around the trading relationship that we will have with Europe going forward.
And we wait to see what that particular number will be. But in the budget today, the most important thing was that the chancellor made it very that
we have invested 700 million today to making sure we're ready for Brexit. But another three billion will be available over the next two years to make
sure that this country is exactly the right position when it comes to departing from the European Union.
QUEST: What will that three billion be spent on? And I can have people, myself included asking, are you building up a war chest for the event that
no deal is put in place?
STRIDE: Well, it's important as a responsible government, we are prepared for any eventuality. Now, we don't want and we don't expect that it will
be a no deal. But in fact, if that what's happens then we will be ready for it.
You ask the question about where it will spend.
[16:39:59] I mean, one of the areas that you will clearly look out will be customs, in a way that our borders operate, whether it would need to be
investment in people, in the systems in I.T, and infrastructure as well.
But as we know at this stage, we are not exactly certain as to whether this negotiate will land. For what the chancellor has made very clear today is
that we will be properly resolves for whatever those negotiations land such that we can move forward positively and make the most stand, have a very
successful life after leaving the European Union.
QUEST: And the United States, of course, is glorying assuming the tax reform package is pass by Congress is planning a massive reduction in
corporate taxation. Now, the UK has already lower than the new U.S. rate will be. But do you fear this new raise to the bottom, raise to change
corporate taxation to attract companies to lower tax areas?
STRIDE: Well, at this country, our country is one of the most attractive nations on earth in which to setup a business and to trade. And one
component of attracting business is two outcomes. And there are many things that we have to offer from skills, and the language, the culture,
and our great education system and so on is taxation. And you're right, we've reduced it from 28 percent on the labor down to 19 percent today with
the commitment go still further to reduce it 17 percent going forward.
And that's just sends a very, very clear signal to business internationally which is the United Kingdom is open for business once your business and
will always have a very competitive tax rate to support that.
QUEST: Another top executive is caught up in Hollywood sexual harassment scandal. Disney's animation chief taking leave of absence siting missteps.
QUEST: Disney's newest film Coco is in the theaters today. Its opening is overshadowed by alligations of sexual misconduct against Pixar's cofounder
and animator John Lasseter.
Now, Lasseter is taking leave of absence in the week what he calls missteps. And an internal memo to Disney staff has apologized to anyone
who had been receiving of unwelcome advances. CNN's Hadas Gold is in Washington.
And so, I think we need to clarify first of all, on this, you know, on the scale where do we believe his behavior fits? Bear in mind, last night
we're talking about the Charlie Ross as well the behavior which is -- it's way over off the scale.
[16:44:55] HADAS GOLD, REPORTER: So, in this case John Lasseter he is being accused of what it has been described as inappropriate touching and
some inappropriate advances, that we're not seeing the same sort of reaction to these alligations as we've seen to some of the other ones.
John Lasseter actually preempted a story that was coming out about him by sending out that memo that you quoted to staff saying that he was taking
six-month off and Disney is supporting him in that. Then, the Hollywood reporter published a history about his unwanted advances and this unwanted
touching and how it sort of well-known in the environment that you would sometimes, they called it the Lasseter and you would put your hand over
your legs so you couldn't touch even certain places, that's what they're alleging.
And we're not seeing the sort of automatic cut-off that we saw with some of these other big names such as Charlie Rose within 24 hours was fired from a
multiple networks, instead did he take six months off and then they're going to see it.
QUEST: OK. Now, one tricky question here, I was reading in Vanity Fair, I think it was. This question about at what point redemption is going to be
possible in certain cases, on the case that's being raised that maybe in this case in Pixar but also that's have been trash at the New York Times.
He was also been suspended by the paper.
And the paper is seriously considering, you know, whether or not he needs to be fired as a result of this. But at some point, those at the lesser
end having done in mea culpa truly there'll be cases where they are allowed to continue.
GOLD: We are in an environment right now where there's so much attention being paid to the sexual harassment allegations that companies are being
very careful about how they approach this. And they are approaching in probably differently than they would have last year or even three months
ago before this all sort of snowballing. And they have a weigh between also the talent that they might see in these people who are being accused
of these things and then they said the mea culpa in how they're approaching what has been said about them how they're working through that and also
with the public standings of these companies.
We're finding, especially in the media world, that we're reporting on a lot of these allegations. Then for example, CBS, New York Times, it's also
happening inside the House. And so that's a very unusual balance that companies, especially media companies, have to find.
And it's not clear what's going to happen with any of these cases. I'm sure that they'll be different outcomes in each one. You can't prescribe a
one-size-fits-all outcome to any of these.
QUEST: Hadas Gold, thank you.
QUEST: I bet some more to retail is suffering from the shift to digital shopping when it comes Christmas, they'll fashion window display is as
timeless as they're kissing mistletoe.
First, meet the boutiques had gone to Nigeria's luxury shoppers as we consider the changes.
UNIDENTIFIED MALE: Luxury transcends of traditional borders, the appetite for high-end has began to rip dividends beyond the fashion capitals of
house of Milan.
The Obayuwana family brought the first luxury boutiques in Nigeria as cover stars of Forbes Africa Magazine, the father and daughter team beyond the
Polo Luxury group are familiar figures well-known for their boutiques focus at the exclusive end of the market.
Since it's launched in the 1980s as a watch specialist, times have changed.
JENNIFER OBAYUWANA, POLO: Nigerians have satiable need for luxury and they and they consumed it. You see we're very flamboyance and you see that in
UNIDENTIFIED MALE: Tell me more about that one.
OBAYUWANA: The groom has to shop for their bride and they'll buy a couple of watches and they'll come and buy handbag and shoes. And so, it fits
imperfectly with our business.
UNIDENTIFIED MALE: The specially selected golden light fills the store increasingly impression of opulence. But the future is in the online
exchanges currently 30 percent of sales.
OBAYUWANA: When I came into the business, I felt that it would be important to serve the emerging middle class that we saw rising very fast.
UNIDENTIFIED MALE: They tried it amidst of global luxury it should be. This year's earnings took a less than $300 billion of the free major luxury
concealer blocks, China and Europe saw a modest gains while the U.S. shrink.
And as that population growth slows, the number of future comes few as well too. It's a different story in Africa, which is producing the planet's
fastest population growth. In less than a decade, more millionaires will emerge with wealth concentrated in the contents urban centers.
OBAYUWANA: They are currently editing this, yes. E-commerce is the biggest driver right now and it's the very important aspects of our
business now, if you look at the competitive advantage on our side.
UNIDENTIFIED MALE: Improved connectivity has played a key role in that growth where the massive personal polling on Instagram, Jennifer was keenly
aware of the commercial opportunities greater access through the internet presented.
OBAYUWANA: I have a lot to thought about, it does allows being the, watch this face, because what they see the biggest luxury providers throughout
QUEST: So, in New York, right now dozens of giant balloons are being blown up, squashed in the streets of New York's Upper West Side. They are, of
course, preparing for Thursday's Thanksgiving parade by Macy's.
They are a sight to be seen and behold as they go down of the West Side in downtown. On this time of the year, breaks some more to retailers like
Macy's which sponsors and have them for years, the Thanksgiving parade are putting at all stuffs to get people through the doors despite record store
closing and rising bankruptcies.
CNN's Clare Sebastian has been looking through the windows.
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT: In New York's department store, windows a festive arms raise is underway.
UNIDENTIFIED FEMALE: Each store has really pulled out the stuff this year trying to make it better, smarter.
SEBASTIAN: Faith Hope Consolo self-describe queen of retail is a kind of star of holiday windows. And at the city's oldest department store Lord &
Taylor should impressed.
UNIDENTIFIED FEMALE: They always had movement and they always had the story but nothing as beautiful as this.
They only use to do in Fifth Avenue, so they are trying to bring the (inaudible) traffic, the downtown, the uptown.
SEBASTIAN: Amidst the holiday cheer, the landscape for these department stores is shifting. Lord & Taylor's current company had been say recently
announced its selling this very building to raise cash.
UNIDENTIFIED FEMALE: All of these designed outside.
SEBASTIAN: All of the --
UNIDENTIFIED FEMALE: Yes. They've never done like this.
SEBASTIAN: And over Saks Fifth Avenue owned by the same company all 14 of its Fifth Avenue windows are decked out for the first time out of
partnership with Disney.
And as for Macy's --
UNIDENTIFIED MALE: This is swatting the asset. These stores are not liabilities or asset. They have to be deployed properly and you have to
maximize how you use that. This is one of those ways.
SEBASTIAN: Macy's was the pioneer of New York holiday windows and it keeps going through economic ups and downs.
[15:55:01] This was 1933 with the U.S. economic still reeling from the Wall Street crash.
UNIDENTIFIED MALE: I think this will be a benchmark type year. Last year, we felt it was heavily promotional. This year it's going to be heavily
promotional again. No one is sitting back waiting to roll all their promotions out on Friday. They've been doing it on a tactical basis for
the last few weeks.
UNIDENTIFIED FEMALE: We see browse door, glamorous (ph).
SEBASTIAN: At Bergdorf Goodman, they are using cultural institutions to stand out.
Is this going to drive for traffic into the store?
UNIDENTIFIED FEMALE: I hope so. I'm not sure but I think. Anything different, it has to be different this year.
SEBASTIAN: A window onto an industry were nothing is standing still. Clear Sebastian, CNN Money, New York.
QUEST: I'm watching the balloons be blown up. In the middle of the night, if you go to Upper West Side, really, is one of those things you do once,
just once. And then, I go get a stormy day (ph), and a profitable moment up.
QUEST: Tonight's profitable moment, Zimbabwe interim president to be said that he was looking forward to a new year of democracy. But, of course,
the issue is whether or not Emmerson Mnangagwa is going to be able to provide that.
Robin Renwick who negotiated with Mugabe at the Lancaster House Agreement in the late 1970s was optimistic. And that's a good thing because although
there's a lot of optimism that Mugabe has gone. There really isn't that much about what comes next. It seems that we might just all have just sit
and wait and watch.
And that's Quest Means Business for tonight. I'm Richard Quest in Abu Dhabi. Wherever you're up to in the hours ahead, hope it's profitable.
I'll see you tomorrow.