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QUEST MEANS BUSINESS

Schumer Reports Progress on Shutdown Talks; Merkel Plans Trip to Davos; Coke CEO Calls for a "World Without Waste"; Google Arts and Culture App Goes Viral; Delta Gets Tighter with Pets on Planes;

Aired January 19, 2018 - 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 QUEST, CNN HOST: All right. That sound is here every single weekday, of course, marks the end of yet another trading day on Wall

Street. In about, I guess, eight hours or so from now we could be looking at a potential shutdown, but look at this. The market has basically

completely shrugged it off. We're ending the day just slightly higher, up about 50 points or so. Earlier in the day we were in the red, but barely.

Basically, down about 50 points, again in the afternoon. But again, the market completely shrugging off this idea of the potential looming shutdown

happening potentially about eight hours from now.

It is Friday, the 19th of January. Tonight, with a government shutdown just hours away, big new developments in Washington. The Senate's top

Democrat says he made progress. He made progress with the president. Also, Angela Merkel booked her ticket to Davos as the world's economic

forum's guest list gets even bigger. And Coca-Cola calls for a world without waste. Environmentalists are not impressed. You'll hear from the

coke CEO.

Hello, everyone, I'm Zain Asher and this, my friends, is QUEST MEANS BUSINESS.

Hello, everyone. I'm Zain Asher. Tonight, the U.S. government runs out of money in a matter of hours, triggering a federal shutdown of the world's

largest economy. At this point, my friends, it is still unlikely that Senate Democrats will cave in and pass a last-minute spending deal. Both

sides here, both Democrats and Republicans are digging in their heels, Senate Minority Leader, Chuck Schumer, met with President Trump two hours

ago and he did say that some progress was made, but that discussions were set to continue. So, there is this idea of uncertainty as we head eight

hours before this potential shutdown at midnight local time eastern time tonight.

This particular crisis, by the way, comes on the eve of Mr. Trump's one- year anniversary in office. And the Senate Minority Leader Chuck Schumer did say that his meeting with the president was productive, but they still

clashed on major issues. Take a listen.

(BEGIN VIDEO CLIP)

CHUCK SCHUMER (D), U.S. SENATE MINORITY LEADER: We had a long and detailed meeting. We discussed all of the major outstanding issues. We made some

progress, but we still have a good number of disagreements. The discussions will continue.

(END VIDEO CLIP)

ASHER: So, who works and who doesn't work when it comes to a potential shutdown? So, when the clock strikes midnight tonight, vast waves of the

federal government will essentially turn into pumpkins just like something out of a Cinderella story. At midnight tonight, non-essential federal

agencies were shut down. We're talking about hundreds of thousands of workers basically staying home, not getting paid until the shutdown is

over. They do get paid retroactively, though.

One other key area that is affect is travel. So even though air traffic control and TSA employees will be working. They will be working because

they are essential, things like passport requests, passport processing will not be happening. So, if you have a passport in the U.S. that's set to be

renewed that could end up taking some time. And then, of course, there is some impact on art and culture, as well. Specifically, museums, for

example, like the Smithsonian in Washington, D.C. and other national monuments will be closed. But there is a sliver of good news if you're

heading for the hills and that is the government says that national parks will be staying open. Sunlen Serfaty, is on Capitol Hill for us. So,

Sunlen, what are the chances when most Americans go to bed tonight -- I know you're probably going to be staying up late. But when most Americans

go to bed tonight, what are the chances that this government will still be open?

SUNLEN SERFATY, CNN CONGRESSIONAL CORRESPONDENT: I think it is very likely that we could see a government shutdown as of now, as of right at this

moment there is no agreement. This is no vote scheduled and there is no plan for going forward. A lot of members up here, Zain, really throwing up

their hands when I spoke to them over the course of the day saying, you know, look, we are essentially in wait and see mode. Really just sitting

around waiting to see what agreement could get brokered.

There have been some percolating things going on, as you mentioned before that Senate Minority Leader Chuck Schumer, shuttled over to the White House

today. Met one-on-one with President Trump in the Oval Office for over an hour. That certainly is a good sign, everyone up here says, but certainly

not reason to be optimist of they wound avoid a shut down. There still has to be an agreement made and very clear coming out of the White House today,

Schumer said, you know, look, we still have considerable differences, but that was good progress.

So, I think the posture right now is that there's some hope that behind the scenes some things could be coming together. But as of now without that

coming together there is not a plan to avoid a shutdown.

[16:05:00] ASHER: So, just explain to our international audience and how the Senate Democrats who are determined to make sure that there is no sort

of spending bill passed without dressing the concern and what happens to DREAMERs. These are the Americans who essentially came over here illegally

when they were children under the age of 18 and obviously, President Obama wanted to assure that they had a means to stay in the United States.

The Republicans, of course, disagree. Walk us through the major sticking points in terms of looming toward a shutdown.

SERFATY: That's right. This is one of the biggest sticking points and it's what Democrats are really willing to potentially push this into a

shutdown over. You have a spending bill, a continuing resolution that would just be about a four-week plan to keep the government funded that was

passed in the House of Representatives. So, Senate Democrats have to pass on this side of the chamber as well saying, no, we're not going to pass a

continuing resolution. We're not going to give you our votes on this spending bill without extracting the concessions that we want and that they

have laid a very firm line in the sand is they want to address DACA. Address the protections for and the so-called DREAMers.

That's something they've been working on behind closed doors for months. And there was a bipartisan plan that was presented to President Trump last

week and he flatly rejected it. So, he had to go back to the drawing board. The White House today saying look, that plan for DREAMers is not

ready, so, pass the spending bill and then we can get back to the drawing board. But I think, Zain, many Democrats up here don't necessarily believe

those promises and they have some leverage right now that they're really trying to use.

ASHER: The fact that Donald Trump came from the business world and what I mean by that is he understands "The Art of the Deal" that famous book, of

course, negotiations. How is that impacting all of this?

SERFATY: Yes, I think the sense that we heard from lawmakers is that President Trump does have to get directly involved in these negotiations

and potentially try to make it happen. We've heard from lawmakers for the last week that they really feel that President Trump is not clear or has

not been clear through his aides yet where exactly he stands on all of this, not on just the DREAMers issue, but about the whole spending bill

debacle that The Hill is facing with the potential shutdown. So certainly, I think, many members up here were interested, the fact that president

Trump invited Schumer to the White House today. The fact that he might be able to exert his negotiating muscle, but as of now there is no plan, no

vote and that speaks volumes to where everything is.

ASHER: It is a very sort of cryptic meeting because Chuck Schumer did say that some progress was made, but obviously, not enough progress otherwise

we wouldn't be heading towards a shutdown. Sunlen Serfaty, live for us there. Thank you so much, appreciate that.

Let's talk about who exactly could be to blame if there is a shutdown that ends up happening eight hours from now? A new CNN poll says one in five,

one in five, so 1/5th of the population in the United States actually lays the blame squarely at the feet of the president. Let's look at the numbers

here. So, 21 percent of Americans are saying that the president, President Trump is to blame, 26 percent say that Republicans are to blame,

Republicans in Congress. So, a total of about half the country blaming between President Trump and obviously the Republicans. Blaming Republicans

because they, of course, control the Senate, the House and also the White House as well. 31 percent, about a third of the country saying that

Democrats are to blame. And even though President Trump is taking a hard line now, boy, oh, boy, he's certainly changed his tune somewhat since May.

He actually suggested during last year's health care debate that the United States needed a good shutdown to fix the gridlock in Congress. Those

comments reminded a lot of people about president Bartlett from "The West Wing." Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE, SCENE FROM "THE WEST WING": We cannot, we will not vote to keep on footing the bill. You will be held responsible for shutting

down the federal government.

UNIDENTIFIED MALE: Then shut it down.

(END VIDEO CLIP)

ASHER: Shut it down. A little bit of a pop culture reference for you. CNN's chief political correspondent Dana Bash is live for us.

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: Zain, I feel like there is a tweet for everything, and there is a "West Wing" moment for everything. I

love that.

ASHER: There is a pop culture reference for everything especially in this White House, Dana, as you know. Explain to us just in terms of who ends up

taking the blame. How can the Republicans spin this to ensure -- or to try and ensure, that the Democrats look bad from all of this? That Democrats

end up taking the blame.

BASH: Listen, at a time when we have seen complete chaos in the Republican messaging. I mean, just even in the past 24 hours where the Republicans in

the House thought that they had a plan to put forward a bill. Which they did end up passing late last night which funded the government and in

addition to that, funded the Children's Insurance Program. Which has been lacking in funds. Which has been sorely needing funds. That the point

there was to try to lure Democrats to vote or at least look bad and not voting, the president totally undermined that. That was yesterday. And

there was certainly a conflicting message from the Republicans.

[16:10:00] Even since then the Republicans have seemed to get their act together when it comes to that key question of messaging which speaks to

your question about who is to blame. Because the answer of who is to blame depends on who explains if there is a shutdown why it happened the best,

OK.

So, Republicans feel that they -- now that they're back on that message have -- are kind of on more terra firma when it when it comes to raw

politics of this. Because they're arguing, and the Democrats are saying that they will not vote for a bill to fund the government and also for

children's health insurance because they're trying to get leverage for the DREAMers, the undocumented immigrants in the United States who came here

thank you no fault of their own with their parents. And Republicans feel like they are pretty good at that on that issue. But the flip side, Zain,

is that we are in a very, very different world in American politics when it comes to the Democratic Party because of President Trump.

The resistance, the base of the Democratic Party is so fired up that they are gangbusters about their leadership doing exactly what they're doing

now, using any leverage they have, holding the president's feet to the fire, particularly on an issue that many people beyond the base feel is

just unfair which is helping the so-called DREAMers stay in the United States. Feel more confident about being able to stay in the United States

and not potentially get deported when the window for allowing them to stay here, one that President Trump initially put in place, runs out in March.

ASHER: So, actually as you're speaking, I just want us to pull up -- if we can, guys in the control room. If we can pull up the actual poll, so we

can have the numbers for everyone. But basically, you see that a third of Americans actually blame Democrats squarely. Almost a third blame

Republicans and about a fifth blame Trump. So, is it possible, really, Dana, for anybody to come out looking good during a shutdown?

BASH: That's really the key question and the answer is no. I mean, you showed a tweet that the president put out the fact that we had a shutdown.

There's a tweet from when he was a private citizen saying it's crazy if there is a shutdown and there's one person who is to blame and that's the

president of the United States. Because the president has to show leadership and the shutdown shows bad leadership from the White House. Not

hearing that now. The flipside, you are seeing sort of clips, reappearing from Democratic leaders in 2013 the last time there was a shutdown because

Republicans were pushing the idea of repealing Obamacare. Those Democrats were saying it's unheard of, it's hostage taking. It's terrible governing.

And you name it, across the board, precisely the opposite of what they're saying now.

So, I think that the point that you just made with that poll and with that question is right on. There are no winners in this. I think everybody at

the end of the day is a loser in Washington because it speaks to the whole reason why people out and about in America are disgusted with this place.

This is exhibit a of why they have to be disgusted.

ASHER: Right, well, we shall see what ends up happening about eight hours from now. I'm certain you're not going to get any sleep tonight, Dana.

BASH: No. No. No, but there actually are negotiations and talks going on right now. So, hope springs eternal.

ASHER: Right. We know that Chuck Schumer actually met with the president.

BASH: Exactly.

ASHER: Dana, thank you so much. Appreciate that.

So, as Dana was talking about all the finger-pointing going on in Washington. I want to talk about the markets because one of the key

questions a lot of people have been asking is what could possibly be the impact on markets of this potential shutdown. And the answer may surprise

you. Because take a look here. Green lights please. Take a look here. The answer surprisingly, is not much because all three major indices ended

higher and that's despite the fact that we got disappointing earnings for two major Dow components including IBM and AmEx.

We actually did get new record highs for two major indices. So, I'm going to change this to ten. We've had ten record highs on the Nasdaq so far and

another ten record highs for the S&P. So, the market just continues marching higher despite all the uncertainty we're seeing in Congress.

[16:15:00] Volatility is down, but let's take a look at sentiment. CNN's fear and greed index showing up at 79. So that is showing extreme greed

right now. So, this market has proved to be numb to various political crisis both this year and last year, but stocks have taken a particular

liking to Donald Trump's agenda. As we approach the one-year anniversary of Mr. Trump in office we are looking at how his deregulation policies have

affected the market. Here's our Richard with more.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN HOST: The deregulation continues at nearly every campaign rally Donald Trump vowed to repeal and replace Obamacare. For a

full year, he struggled to fulfill that pledge even as he was cutting red tape. His health care bill failed to clear the Senate. So instead of

taking Obamacare down in one fell swoop, there is a growing perception in Washington that regulatory changes are dismantling it piece by piece.

In October he signs an executive order to loosen restrictions in Affordable Care Act. That's made it possible for people to buy cheaper health

insurance with fewer benefits and protections. Then last month, a clause in the Republican tax bill effectively ended the individual mandate.

Donald Trump painted it as the end of Obamacare.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The individual mandate is being repealed. When the individual mandates is being repealed that means

Obamacare is being repealed. Because they get their money from the individual mandate. So, the individual mandate is being repealed. So, in

this bill not only do we have massive tax cuts and tax reform, we have essentially repealed Obamacare.

QUEST: And it continues. The deregulation scissors of the president have made other cuts. For example, he's delayed new penalties designed to

punish drug companies who overcharge their customers. And the share prices for big Pharma companies have risen. Look at the index. They're up 15

percent on average in the past year thanks to the shot in the arm from the White House. Whichever way you look at it, as we consider the deregulation

by stealth of the U.S. economy, health care is way up there. Richard Quest, CNN, New York.

(END VIDEOTAPE)

ASHER: Right. Moving away from political news, I want to turn back to business news because it has been predicted that the U.S. could soon be

pumping out more oil, more oil than anywhere else in the world. Soon, actually get this, overtaking Russia. The claim, by the way, doesn't

actually come from President Trump even though it does seem to be a bit farfetched. It is from the International Energy Agency, the IEA, in fact

predicts that the surge in output will mean the U.S. will produce 30 million barrels of oil and natural gas a day, by 2025, and that is an

increase of about 25 percent compared to where we are right now.

Antoine Halff, who used to head the oil industry and markets division at the IEA, joins me now. He's the co-founder of Kross. Antoine, thank you

for being with us. This is actually quite interesting. So, what does this actually mean for oil prices? The fact that the U.S. is becoming a major

player. What happens to oil prices now?

ANTOINE HALFF, DIRECTOR, GLOBAL OIL PROGRAM, COLUMBIA UNIVERSITY: More supply would normally be various for prices, but of course, the rise in

U.S. production has been offset by constraint in the OPEC production. So, the Saudis have cut their output partly in response to the increase in

production volumes and --

ASHER: They're trying to raise prices.

HALFF: Trying to raise prices, support the price and also to limit or control a certain amount of market share. They want to aim at a certain

market share. The U.S. has taken advantage of this. The U.S. has invested in shared technology for some time now. And actually, a lot of people

thought that the U.S. would be -- the U.S. production would suffer from the low price of the last few years. But it actually got better because it

learned budget discipline. It learned new technologies, improved the technologies and just in the last couple of months of data we've seen

massive increases in U.S. production.

I think a lot of the forecasts of continued strong growth from the U.S. next year, but they extrapolate from the steep growth that we've seen in

September and October, my view, however is that that growth is probably not something that we will see every month. There's been a change in the way

shale production works in the U.S.

ASHER: So, it's interesting because you have this dichotomy. On the one hand you have various OPEC members trying to cut production and therefore

raise prices. On the other hand, you have the U.S. now becoming a major player. How does OPEC go about changing their strategy and now that the

U.S. is now producing more and more oil?

[16:20:00] HALFF: I would say OPEC member countries are getting a bit nervous watching the U.S. There's been some flux in the OPEC policy over

the last few years. November 2014, OPEC surprised the market by not cutting production in the face of falling prices and going for market

share. Increasing the production dramatically. Then back in November 2016 last year, a change of policy and in December an agreement to go back to

market management, cap production aggressively and team up with non-OPEC producers like Russia, to try to restrain supply and prices. So, a big

question now is where do they stand as prices recover, but U.S. production also increases. Will they want to increase their production to lower the

price and perhaps discourage investment in production in non-OPEC countries, or will they want to keep up with the production and gain market

share.

ASHER: So, when you think about the cause and the reasons perhaps behind this steady rise in oil production in the United States, how much of it has

to do with the fact that Donald Trump has been squarely focus, on deregulation when it comes to the environment, when it comes to the EPA.

HALFF: Nothing at all. It started years ago. We're seeing under President Obama the biggest increase in production in all history in a

single country. And production both continues now, but it's a legacy of investment in technology that has been made for years and it has nothing to

do with the deregulation today. Suddenly the oil industry likes deregulation. I think they like the sound of it.

ASHER: Yes.

HALFF: But it's not having any impact.

ASHER: It's not having any direct impact. All right, Antoine, good to see you. Appreciate it

ASHER: Thanks for having me.

All right. Donald Trump will have some big names keeping him company in Davos next week. Now the German chancellor is a last-minute addition to

the guest list. We'll discuss after the break.

(COMMERCIAL BREAK)

ASHER: The guest list at Davos next week is now set to get even bigger and that's because German Chancellor, Angela Merkel, is actually going to be

attending after all. She's going to be making a speech centered around Europe on Wednesday. That is, by the way, the same day as French President

Emmanuel Macron. And this really sets up a potential showdown with Donald Trump who is speaking two days later on Friday. Because these two world

leaders certainly have very competing world views. Jeremy Cliffe is the Berlin bureau chief at "The Economist." Jeremy joins me live now. So,

Jeremy, thank you very much for being with us.

So, Donald Trump and Angela Merkel are set to be on the world stage together. Obviously, they have different views about the world. And

they're set to be on the world stage for the next few years. What should Angela Merkel's strategy be when it comes to dealing with Donald Trump and

I guess vice versa?

[16:25:00] JEREMY CLIFFE, BERLIN BUREAU CHIEF, THE ECONOMIST: In many ways I see this as Angela's Merkel's return to the world stage after many months

of elections in Germany and then long months of coalition negotiations, which are still ongoing. And I think what we're going to see from her is

the return to the subject matter of her last big international appearance like this which is the G-20 summit in Hamburg last July. That was also the

last time when Donald Trump and she were together in Europe.

And I think you'll hear the same sort of things you heard from her then. A strong call for a multilateral world order. For common trade rules, for

free-trade, for progress towards environmental goals. So, shall be setting out a vision for some multilateral liberal vision of globalization that

will contrast very starkly with Donald Trump. And I think that's her whole approach to him. Which is to say, she will engage politely in diplomatic

protocol. But she will also set out clear red lines where she disagrees.

ASHER: I mean, speaking of globalization, the fact is Angela Merkel has to change her stance and her policy a little bit. Because obviously after the

last election things didn't really go so well for her. And a good part of that was because of her handling when it comes to refugees. How does she

change her governing style going forward, do you think?

CLIFFE: Her move has been greatly reduced by the election and when she went into it, her grand coalition, the center left, and the center right

together have about 67 percent of votes. That dropped to 53 percent of votes. So even if they managed to pull together another such coalition,

which is what she's hoping, her authority within Germany I think is reduced. And there is a strong sense here in Berlin that we may not be at

the very end of the Merkel era. People have written her off before prematurely. We're probably at the beginning of the end. The strong

assumption here is that she might stay as chancellor for may be another two or three years. She'll bring up successes in her party, the Christian

Democrats, and then will step aside. And I think one of the interesting things I'll be looking for to on her speech on Wednesday is, does she

sketch out something like legacy project? Does she sketch out something she wants to achieve on the world stage in her final years as chancellor?

ASHER: Yes, that will be interesting to see. But as you mentioned, it is a bit too early to write her political obituary, but it is still the

probably the beginning of the end for Angela Merkel.

All right, Jeremy, thank you so much for being with us. Appreciate that.

Let's turn to markets in Europe. Let's see how they closed. Major indices actually closed the week higher boosted by stronger earnings across the

Atlantic, particularly in the U.S. The Dax was the best performer, up by more than 1 percent. While the German economy keeps booming, there is

still a shortage of workers to meet demand. Some companies are looking at a new source of talent, refugees. Here's our Atika Shubert with more.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): The city of Dresden is profiting from the German economy, home to a thriving tech industry from

semiconductor makers to software producers such as SAP. The company is constantly trying to fill positions as it grows. And it has tapped a new

source of talent, refugees. Such as Amah Aram who fled the war in Syria.

UNIDENTIFIED MALE: And they said welcome, I save you, I accepted you. It was so awesome.

Aram is one of 150 refugees taking part in SAP Germany's vocational training program. About one third are likely to end up with full-time jobs

with SAP. And other companies have to ask SAP how they have done it, says they had of vocational training.

NICO HERZBERG, SAP DRESDEN: We have 700 people coming from over 20 nations worldwide, so, we are used to that and it's really an experience and none

of our students have. I just encourage all of the other companies to just do it.

SHUBERT: Consider the numbers. Germany has enjoyed eight years of robust growth and 13 years of rising employment. And according to the German

Institute for Employment Research and the country had a million unfilled jobs mainly in tech and the last quarter of 2017. 60 percent of companies

here cite labor shortages as the biggest concern, says Germany's Chamber of Commerce. In 2015 Germany took in as many as a million refugees and

continues to take in more. But can refugees and newly arrived immigrants fill the gap? Not entirely.

VOLKER TREIER, GERMAN CHAMBER OF COMMERCE: The bulk of the refugees for the time being not meeting the qualification demand of the businesses.

This is true when it comes to the language skill, but it is even more true when it comes to the qualification requirements.

SHUBERT: It does cost more time and money. SAP invested in intensive language programs and proactively tries to match skills. Hossam Rezek, for

example, was an experienced operations engineer for Syrian telecom in Damascus before he fled the war. Now he works as a programmer with SAP and

has made Dresden his home with his wife and two children. He credits his colleagues for making him feel at home.

[16:30:00] HOSSAM REZEK, REFUGEE: I like so much here. My team help me to integrate. Actually, my team was my window to the language.

SHUBERT: SAP admits their program is small and still won't fill all of the gaps, but the company insists it's a start.

Atika Shubert, CNN, Dresden.

(END VIDEOTAPE)

QUEST: All right, one down and three to go. President Trump is about to mark his first year in office or in his words, 12 months of draining the

swamp. We'll discuss after this quick break. Don't go away.

(COMMERCIAL BREAK)

ASHER: Hello, everyone. I'm Zain Asher. Coming up in the next half hour of QUEST MEANS BUSINESS, Google's new app goes viral. People who fancy

themselves as a work of art. And dogs on a plane. Delta says passengers are taking advantage of its support animal system. But before all of that

though, this is CNN and on this network, the news always comes first.

All right. The clock is ticking on Capitol Hill where the U.S. government is set to shut down in less than seven hours from now. U.S. Democratic

leader Chuck Schumer met with President Trump at the White House earlier and said some progress was made, but there are still disagreements. On

Thursday, the House approved a short-term spending bill. It's not clear when or if the Senate will vote on it.

A preliminary report on the October mass shooting in Las Vegas reveals more about how the gunman actually planned the attack, but it does not answer

the key. The biggest question, which is why he actually did it. 58 people died in shooting and more than 1,000 were wounded.

International Olympic Committee has announced that its excluding 111 Russian athletes from the upcoming Olympic Winter games and South Korea.

The committee has banned a Russian team from the games over state-sponsored doping allegations. But Russian athletes who have never failed a drug test

can still participate as neutrals under the Olympic flag.

On the eve of Donald Trump's one-year anniversary as U.S. president, his approval rating is back into the 40s, but it's still the lowest point of

any modern president at this point in their tenure. Just the first year in, according to a CNN poll release just a few minutes ago, 40 percent say

they approve of Mr. Trump. Four percentage point from about one year ago.

[16:35:00] Tony Blinken is a former deputy U.S. Secretary of State and is now CNN's global affairs analyst. He joins is live now from Washington.

Tony, thank you very much for being with us.

TONY BLINKEN, CNN GLOBAL AFFAIRS ANALYST: Good to be with you.

It's a pretty big week for Donald Trump. I mean, obviously, you've got this looming shutdown that could potentially happen in about seven hours

from now. You've also got him preparing to go to Davos to make a big speech next Friday, a week today. And you've also got these extremely low

approval ratings. How would you sum up Donald Trump's first year in office?

BLINKEN: I guess the first word that comes to mind is chaos. And sometimes that actually works for him. But every time we think we're

getting on a more predictable course, the president tweets something or says something that tends to blow it up. For example, it looked like we

were on the verge of a budget, or at least keep the government going just as early this week. And then in the infamous meeting the president and the

remarks that he made about certain countries and certain people blew all of that up.

And even a day ago, it looked like there were the makings of a deal that could bring Democrats and Republicans together and the president tweeted

that he didn't support it. So, there is this ongoing chaos both at home, but also around the world. And that too is because the United States and

so many ways unfortunately, is pulling back from leadership. There's going to be a fascinating moment next week when the president goes to Davos. And

this is really oil and water getting together or maybe the fox in the henhouse. It's hard to think of two more different people then on the one

hand and the president of the United States and the Davos crowd.

ASHER: Right, because the theme for Davos this year is how to govern in a more fractured world. Is the principal cause of the fracturing in your

view, President Donald Trump himself?

BLINKEN: He's not the principal cause. There are many things that are fracturing the world. And you can point to all sorts of different actors

who are not growing in positive direction. But he certainly hasn't helped, and arguably he's contributed to it. But here's the thing. He's coming to

Davos with his so-called America first agenda. He's going to try to demonstrate that that doesn't mean America alone. But almost by definition

the way he's going about it, does mean that. We've seen in poll after poll respect for American leadership going through the floor.

Most recently this week in a major survey. Dropping 30, 40 points, and unfortunately, the dynamic that he's changed is that we used to believe,

and we used to advance as the United States, in leading win-win propositions. And what was good for other countries was also good for us.

And our investment in their security and their prosperity helped them. But it also helped us with new markets for our products, new partners to deal

with problems, new allies to deter conflict. The president seems to have a much more transactional zero-sum view of the world in which either we win,

or we lose. And by definition, others either win or lose. That's not a good way to get people on your side working with you to work on problems

that don't have a single country solution.

ASHER: We know that Donald Trump's actually going to be meeting with Theresa May. She has come under so much criticism because some people

believe that despite Donald Trump's questionable rhetoric, she's gone out of her way to try and appease him. Obviously, Britain is in a sensitive

point in time for that country. Because of Brexit they really do need the United States. And where do the two leaders see eye to eye right now?

BLINKEN: The fact is the partnership, the alliance, remains vital no matter who is leading. But it certainly gone through a very contemptuous

time in part because of the way the president's gone about it. I feel a little bit bad for Prime Minister May. She's tried her hardest to develop

a positive relationship, which, look, makes sense for the UK. It makes sense for the United States. But we've done some things that have made it

very, very difficult for here.

Look, I think they're going to try to do their best to put on a brave face and to show some kind of united front. This comes in the wake of the

president saying he would not be going to the United Kingdom and to London to inaugurate our new Embassy. Allegedly because he didn't like the deal

that was done for the new Embassy property. But it's really because he wasn't welcome. They need to somehow change that dynamic. And he needs to

show that he has great respect for and appreciation for our closest ally.

ASHER: All right, Tony Blinken, live for us there. Appreciate your perspective on this story. Thank you so much.

BLINKEN: Good to be with you.

ASHER: Good to be with you, too.

Google's new app mixes priceless works of art with your selfies. I will show you who I matched up with next.

[16:40:00] (COMMERCIAL BREAK)

ASHER: Welcome back, everybody. Google says that more than 30 million people have used its new arts and culture app to see which works of art

they most resemble. The app has gone completely viral all around the world despite only being available in the United States. It matches your selfie

with Google's digital collections of paintings from all around the world.

Obviously, of course, we had to try it ourselves. Take a look at this. That's me about an hour ago, guys. So, my best match was this painting by

the Chicago artist, Rahmaan Statik. An African-American artist and this is at the Museum of Public Works in Louisiana. And as for Richard, we course,

did one for him even though he wasn't here to do one himself. We did one for him anyway. Apparently, his best match is Philip IV of Spain. And

that picture is in the Slovak National Museum. I'm not sure how Richard would feel about this. I don't know if I see the resemblance. But maybe I

saw a little bit of resemblance of the person I was matched with.

OK, Loic Tallon is the chief digital officer at the Metropolitan Museum of Art here in New York. So, Loic, explain to me why this has gone completely

viral. Why do you think?

LOIC TALLON, CHIEF DIGITAL OFFICER, THE METROPOLITAN MUSEUM OF ART: I think there's a culture now where people enjoy taking photos of themselves.

And when we go and have an experience in the Museum and we see photos all the time inside the museum. It works every day, but Museum selfie day was

on Monday. The number of images taken was huge. And this one, Google's made their project, it's being google it gets a lot more attention,

matching yourself to a work of art. If that's what hooks you into discover something new. I looked up mine, Mine is Martin Bomb, Cincinnati Museum of

Art. Carrying this guy for a western museum in Cincinnati, one of the very first museums in the part of the country. So, I was like, that's a cool

guy to be matched with. And I learned something new. So, in that sense I kind of like the interaction of learning something new from a very simple

kind of like icing flavor. This is who you look like.

ASHER: It's interesting because we live in -- it's an interesting dichotomy because we live in such a selfie and self-obsessed culture. But

art is very much of the opposite of that, getting outside of yourself and seeing yourself from an interesting perspective. So, it's quite an

interesting idea to pair these two frames of reference together.

TALLON: I think it's important to know these kinds of projects and even Google arts and culture has been working with museums for seven years. So,

this is one kind of project they've done over a number of years, and I think it's good to have playful ways of engaging with art. There's a huge

amount of research behind these artworks. If people want to learn more. If this is what inspires them to learn more, that's great. But it's good

to have these playful entry points. I would say also this project builds on a legacy of other projects like this. We recently did a problem called

send me SFMOMA. We send a text many an emoji SFMOMA. I may send you back an artwork that's matching your mood.

We even had a couple of students from Columbia University build a Facebook app where you take a photo of yourself, we would find the orientation of

your head and find a person who's had orientation was the nearest and a match to that head. But seriously, we want to encourage that kind of

creativity. When you have a collection like, I'll take the Mets collection, you want to get people engaged anyway you can.

ASHER: How does the art world take advantage of this. Because when you have an app that goes viral, and you're right, it really enables young

people who might not ordinarily engage with art to engage with art in a way they never have before.

TALLON: It brings it to their lives.

ASHER: For you, you work at the Met, how do big museums take advantage of this?

[16:45:00] TALLON: From the Met's perspective we have 1.5 million artworks. It's a huge collection covering 5000 years of world history. I

work 3.7 billion Internet connected people in the world. I am convinced we have artwork that would inspire any of those 3.7 billion people. The trick

is to reduce the gap between that person and the artwork that will inspire them. We have 31 million people coming to our websites and sites like

that. But I want to get those people who aren't coming to our website inspired by the art. So, we need to get our collection into other places.

And I see this Google project as one other place we can put our art and create those connections.

If it can reach people who are coming to museums, who didn't even know the role of art in their life today, great, that's inspiration. It's one of

the reasons we actually made our entire collection are public domain collection available without copyright. So, people working in this space

between art and technology, which is a fantastic creative space to work in. Just like using collections like this and building and working around it.

And so, we encourage it. We welcome people to use the collection. We want people to be building more of these. I expect as artificial intelligence

gets better, as computer vision gets better, you'll see more of these kinds of projects in people's living rooms much like yours.

ASHER: I love the idea of technology and art coming together. I think it's fantastic. All right Loic, thank you so much. Appreciate you being

with us.

TALLON: Thank you.

ASHER: Still to come here on QUEST MEANS BUSINESS. Snakes on a plane and now dogs and even chickens. Why one airline is cracking down on so-called

animals and service animals on board. That story next.

(COMMERCIAL BREAK)

ASHER: Welcome back everybody. Coca-Cola is promising to do more to keep its products out of landfill. The drinks giant says it will make a

concerted effort to recycle and use more environmentally friendly packaging. The plan has already been criticized, however. Coke's CEO

James Quincey, sat down with our Poppy Harlow to explain how it would work.

(BEGIN VIDEOTAPE)

JAMES QUINCEY, CEO, THE COCA-COLA COMPANY: People, we want to get to a world without waste. So, we want to collect back from the marketplace

every bottle and can or equivalent of every bottle and can that we have sold. We've done a lot of work to make all our plastic bottles recyclable.

We are investing in technology to be able to reuse them. But what we need to do is collect them.

POPPY HARLOW, CNN CORRESPONDENT: How do you do that? How many bottles do you guys have out there?

QUINCEY: We have over 120 billion each year. It's the equivalent of we need every person in the world to give back to bottles a month. That's

what we need to collect back. Now, it won't be the same solution in every country. And in some parts of the world there are already better. We are

already at over 70 percent in Europe. Even in place like Mexico we've gone from almost nothing to over 50 in the last 10/15 years. But the solutions

are different. And we need to work with governments and industry and other partners to get it done. It can be done.

HARLOW: How do you hold all these parties accountable, James. But ultimately from what I've read and heard from your team, this is very

personal to you. That's why you the CEO are out here in front of this announcement. How do you hold those parties accountable to make sure it

actually happens?

[16:50:00] QUINCEY: I think actually, you know, in the end it shouldn't be seen just as I'm very personally involved. Very committed to it. It

should be seen as just the CEO leadership. I think it's very galvanizing for our employees and everyone who works in the system. They all want to

see a world without waste. And therefore, will all hold ourselves accountable.

HARLOW: So, what are the metrics you're going to measure? And what? Five years from now or so.

QUINCEY: We're going to measure how many bottles and cans that we're collecting, and our goal is to get one back for everyone we sell by 2030.

HARLOW: And you can get those numbers from the different recycling entities?

QUINCEY: It's not always easy, but we need to invest to make sure it's done.

HARLOW: Was this pushed by consumers? Shareholders? Was there a demand for this?

QUINCEY: I think there's clearly a demand. You know, waste bottles are getting into the wrong places. We've had a journey to try and make things

more recyclable, because things were going to landfill and not being reused. Now that we've got that, we've got to collect the bottles. You

see the disturbing images in the oceans. We work with a lot of NGOs to try and improve that. And I think it's just the time now to set a bold

ambition.

HARLOW: So, as you know there's been some pushback this morning from Greenpeace. So, let's go through that piece by piece and get your

response. So, Greenpeace came out slamming this. Their words. They said that the company Coca-Cola is dodging the main issue. They say you're

failing to address the urgency of the public pollution issue. They talked about no reduction outlined in this plan of the single bottle, plastic

bottles, they note 1 10 billion per year. What's your response to that?

QUINCEY: I'm not sure they completely grasp everything were saying today. I know they're very focused on single use, but if we get what I'm talking

about right, there will be no single use bottles. So, I think were not as far apart as they are saying.

HARLOW: What does that mean no single-use bottles?

QUINCEY: Well, what single-use means is you drink it once and you throw it away and you put it in the landfill and it goes wrong and it ends up in the

ocean. If we collect them all, they'll either all be melted down or chopped up and reused in more things. Whether it's new bottles or bumpers

on cars or whatever. So, in fact there never will be once we succeed, a single-use bottle again.

HARLOW: So, they say Coca-Cola is trying to offset its huge plastic footprint by investing in a bit more recycling. And the wrong?

QUINCEY: Incorrect. We have already made all of our bottlers recyclable. We are going to invest ourselves, with partners, with governments with

NGOs, to collect the equivalent of everything we put in the marketplace. Not a bit more, all of it. And then it will be reused. And I think when

we get there in 2030 we will stop there being a future problem. Now, we need to work to help clean up the oceans and the problems from yesterday

that are already there. But it's absolutely doable. And I think it's exciting. And I think we'll see a lot of energy and a lot of industry

partners come together to make this happen.

(END VIDEOTAPE)

ASHER: All right, welcome onboard. Guys look at my new friend. This is Brody. Hello, Brody, come here. Come here. This is Brody. He's one of

our producer's dogs who actually flew here from London just a few weeks ago. You are gorgeous. Ok. He was kept in the hold. But now in the U.S.

is much more common to see dogs like this in the cabin. But delta is cracking down on it. Big reason is because the huge numbers of dogs

actually in the cabin has led to major safety concerns. Including worries, biting incidents as well. Now owners are going to be needing much more

documents to show that the animal has actually had training and vaccinations as well. He's going off to our producer. He's right there.

For more on this I'm actually joined by psychologist Rachael Silverman. So, Rachel, just walk us through this. I mean, what is actually the reason

behind this and you think there needs to be much more restrictions in terms of how dogs are handled on planes?

RACHAEL SILVERMAN, PSYCHOLOGIST: So, yes. I do believe the restrictions are, unfortunately, necessary because of what's gone on, on many airlines

and flight. But I do feel like these airlines are doing what they have to do because the language, the law itself is so vague.

ASHER: So how many actually need these emotional service animals onboard?

SILVERMAN: I'm sorry. Say that again.

ASHER: How many people roughly do you think need emotional service animals onboard. What percentage, do you think?

SILVERMAN: I would say a fair percentage would be 10 percent, maybe 20 percent, at the most. These letters are for those who have diagnosed

mental health disorders.

ASHER: So how can delta actually make sure. Sorry. Go ahead. I'm sorry to interrupt you.

SILVERMAN: Oh, no, please. I was just going to say that there are ways. I mean, what has been going on is that you need to go to a mental health

professional who does diagnose you with a disability, with a mental health disorder and then it is part of treatment.

[16:55:00] It's not the treatment for your disability, for your mental health disorder. It is part of treatment. So, you would then have the

letter and you would bring it to the airline. What's going on now is that you now, in addition to the letter from your health -- mental health

provider, you now have to go to your veterinarian to get an additional letter about your animal. To make sure the animal is safe to go on the

plane.

ASHER: So how many sorts of dramatic, sort of negative instances have there been? Obviously, there has been a rise in the number of dogs in the

cabin. How many negative incidences have we seen in terms of mauling or biting and that sort of thing?

SILVERMAN: Well, I know that there was an incident that made the news this past June. When a dog did bite a passenger. I believe it was it bit them

in the face. And that made the news. But really, in my opinion, there are -- most of these animals that are within reason such as dogs, cats and

birds are harmless, but when you have the occasional incident, the airlines have to buckle down.

ASHER: All right, Rachael Silverman live for us there, thank you so much. I appreciate that.

All right guys, and that does it for QUEST MEANS BUSINESS. Brody, OK, say good-bye, Brody. Say good-bye. There you go. I'm Zain Asher. Richard is

back on Monday from Davos. Have a wonderful weekend.

END