Return to Transcripts main page
QUEST MEANS BUSINESS
The President Of The European Council Said Theresa May Has One Last Chance In Four Weeks' Time To Get It Right; Dow's 100th Record Close Since President Trump's Election And - However, The First Since January; Kim and Moon Vow to Bring Peace to Korean Peninsula; Bobi Wine Returns to Uganda; Banks Relocate Jobs, Investment Ahead of Brexit; Stocks at All-Time Highs Ahead of Closing Bell; U.S., Canada Talk About Future of NAFTA; All Aboard for Israel's High-Speed Train, 10 Years Late and Still Not Ready; Fictitious TV Reporter Becomes a Viral Hit. Aired 3-4p ET
Aired September 20, 2018 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN INTERNATIONAL HOST: It is the last hour of trade on Wall Street, and these are the top business headlines on Thursday,
September the 20th. US markets are on track to close at record levels. The Dow and the S&P both hit all-time highs. Earlier today, the Dow's
first record since January. The market has been on a turn throughout the course of the day. It looks like we might end up the best of the day.
The takeover battle for the British broadcaster Sky could be decided by auction this weekend. Frankly, Comcast and Fox must take on new bids this
week and if there is no resolution, a one-day auction takes place at the weekend.
And Donald Trump is blaming OPEC for high oil prices, tweeting, "The OPEC monopoly must get prices down." We'll have market's objectives throughout
the course of the program. Tonight, we are at Westminster, outside of a crucial day for Brexit where a summit has been held in Saltsburg. I'm
Richard Quest, and I mean business.
Good evening. Tonight, Brexit is approaching a moment of truth, so says Donald Tusk, the President of the Council, as he roundly rejects Theresa
May's trade proposals. The moment when Britain will leave the EU is now only six months away and crucial issues remain to be unresolved - remain
unresolved. Both sides are digging in.
So at the meeting in Salzburg, the President of the European Council said Theresa May has one last chance in four weeks' time to get it right.
(BEGIN VIDEO CLIP)
DONALD TUSK, PRESIDENT OF THE EUROPEAN COUNCIL: Everybody should review the positive elements in the Chequers' proposal, the suggested framework
for economic cooperation will not work. The moment of truth for Brexit negotiations will be the October European Council. In October, we expect
maximum progress and results in the Brexit talks.
(END VIDEO CLIP)
QUEST: Theresa May arrived in Salzburg with high hopes for the compromise and Tusk's statement was the moment it became clear that wouldn't happen.
It's a major blow to the Prime Minister, already under siege from members of her own party. And as Donald Tusk rejected her Chequers plan, the Prime
Minister insisted there's no alternative.
(BEGIN VIDEO CLIP)
THERESA MAY, PRIME MINISTER, GREAT BRITAIN: There is no counterproposal on the table at the moment that actually deals, delivers on what we need to
do, and respects the integrity of the United Kingdom and respects the result of the referendum. That's what we've put forward.
If there is no agreement on a deal that is acceptable to the United Kingdom, then we're preparing for no deal.
(END VIDEO CLIP)
QUEST: So where do we actually stand? Look at the issue tracker to see where the talks are going. Now, the issues in green are the ones that are
largely settled. So, for example, the order of the talks, the exit bill, the right of EU citizens and the length of the transition period. Now,
look at the ones under discussion. And there, you've got the Irish border, trade and legal. The two sides are very far apart.
Theresa May says she can't accept the so-called backstop plan for Northern Ireland, which would keep the north aligned with the Irish and EU rules.
That, according to the British Prime Minister would divide the UK. Anyway, it's unthinkable to her coalition or at least the party, the DUP that's
keeping her in office.
Donald Tusk says her plan won't work; and talks on security cooperation have not even begun. As we show you this, remember, the warning the Prime
Minister Theresa May delivered last week in Westminster.
(BEGIN VIDEO CLIP)
MAY: As the EU themselves have said, nothing is agreed until everything is agreed. Without a deal, the position changes.
(END VIDEO CLIP)
QUEST: Bianca Nobilo is with me. How deep and divided is it now?
BIANCA NOBILO, CNN CORRESPONDENT: Between the EU and the UK or behind us?
QUEST: Yes. Both. Do the first.
NOBILO: So, it's deeply, deeply divided and it's almost surprising because last night. Donald Tusk said there was more hope but less time. So this is
quite an about turn supposedly because the Prime Minister took such an uncompromising position at the dinner last night when she had ten minutes
to persuade the round to her Chequers' plan.
In terms of the building behind me, even more so after the news today. We've heard from one of the leading Brexiteers, Jacob Rees-Mogg, he says,
"Well, now Chequers has no friends." Because obviously, Brexiteers didn't want to, so now he says, "The EU doesn't even want it." That was supposed
to be the selling point of Chequers.
QUEST: So when Emmanuel Macron comes along and says that the whole thing is falling apart, the lies he has called it, we should take this seriously.
NOBILO: We should and the point that Macron was trying to make and it's a point the EU has been trying to make all along is that this process of
leaving the EU is an agonizing one, it's not as easy as the Brexiteers tried to make out in the referendum campaign. Clearly, that is a message
the EU wants to get across.
QUEST: But how realistic is it then that they're going to be able to solve this by the October Special Council, which Donald Tusk has called.
NOBILO: It looks unlikely now. I mean, they have this emergency summit they have mentioned which is going to be on the 17th and 18th of November.
It's possible they could fudge it, but there's increasing concern in the building behind us and also across Britain of a blind Brexit. This notion
that we'll be signing up to Brexit, but won't know what will happen after March the 29th, 2019. They won't know what the future relationship is
going to look like.
So they can try and fudge it with the EU. But if people in the UK are getting more sensitive to the idea of not knowing what the Brexit will look
like, how will that fudge get through?
QUEST: Has - is it your feeling that the position in Europe has hardened, that the EU has hardened its case to the point where listening to Macron
today and others, it's almost as if they are saying, "Look, if you can't come up with something better than a no Brexit deal, it will hurt us all,
but it will hurt you more than us."
NOBILO: That is what they are saying and in fact, Juncker said that today. He said, "We are prepared for no deal. Don't worry, be happy," were his
words. But yes, it looks more and more divided by the day. And in fact, Theresa May needs to be incredibly concerned about this because of the
fractured state of her own party and that's why the EU can take such a hard line because they're speaking with one voice, they are not in that ...
QUEST: In a moment, I'm talking to Lord Lamont. What should I ask him?
NOBILO: I think you need to ask him about what the potential solution is to the Northern Irish problem. That is the problem, the sticking point,
which is holding back negotiations and he'll be able to talk to you all about the issues with customs and the issues with the single market, no one
QUEST: Stay close by an you'll hear what he has to say. The French President, Emmanuel Macron, has launched an extraordinary attack on Brexit.
He says those who told the public that Brexit would be easy are liars and described the Chequers plan as unacceptable. He had this message for those
who think it's going to be fine.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, PRESIDEN OF FRANCE (through translator): The Brexit teaches us something, and I completely respect British sovereignty when I
say that it showed that those who say that we can easily live without Europe, that everything is going to be all right and that it's going to
bring in a lot of money are liars.
(END VIDEO CLIP)
QUEST: Lord Norman Lamont is a former conservative Finance Minister and a Brexiteer. Good to see you, Lord Lamont.
NORMAN LAMONT, FORMER CONSERVATIVE FINANCE MINISTER: Thank you.
QUEST: And so let's start with answering Bianca's question. What is your alternative solution if Chequers isn't a good solution for Northern
Ireland? What's your preference?
LAMONT: Well, I think it's right to say that the Irish border is the key question. Actually, I think it's a bit of a non-problem. They have made
it into a problem tactically because the way in which they framed it would make it insoluble. But if they mean what we say, it would be I think
comparatively easy to have a decentralized regime of inspections, of alignment, away from the borders.
Varnier himself has said that he wants the border to be in the North Sea as part of the backstop, but it would be very light. If it can be very light
in the middle of the North Sea, why can't it be very light from the Irish border. I think one has to distinguish between a hard border and no border
QUEST: The Prime Minister doesn't agree with you on that. She points out it doesn't matter whether the borders in the heart of Northern Ireland or
it's on the border itself. Any form of checks would be by definition creation of a hard border with a light touch.
LAMONT: Well, we already have as you know, checks on the Irish border, though checks on VAT, checks on excise duty. We have different currencies.
They're not literally carried out on the border. But there, you can see cars stopped. You can watch them on Facebook, cars being stopped on the
border and inland.
The point is that - an awful lot of customs inspections take place at the point of departure in the warehouse, so they are based at the borders, so I
do think that we have to concede. There would be some checks, just as there are now.
QUEST: How far are the hard Brexiteers prepared to push this? If Chequers or some version thereof comes out of the next month's summit meeting, will
they vote it down in parliament? Because that's really where it all happens now.
LAMONT: Well, I think if they were going to vote it all down, and I'm a pretty hard-line Brexiteer, you have to ask what happens next. I'm not
sure that it's as simple as saying, we get into - we're out and there's no agreement and we're on WTO terms. I think there would be a lot of
maneuvering and you wouldn't get there in one go.
QUEST: No, but Emmanuel Macron today - and I say this with due respect since I am saying it to your face, called hard-line Brexiteers liars in
that you had implied and given the impression that it was going to be easier than it has been to get a settlement, get an agreement until you
leave the EU.
LAMONT: Well, I think the word "liar" is completely inappropriate. You can criticize some things that were said on both sides. The issue of it's
difficult versus it's easy was not really an issue in the referendum campaign. The issues were about what would the budget contribution be?
What would be gained from it? Those were the arguments, and Macron is talking nonsense.
QUEST: Coming back to this idea of voting down the bill, obviously it depends what it looks like. But even if it's a version of Chequers which
does have some form of alignment with the north to the south will follow a common set or a common rule book, can you live with that?
LAMONT: Well, I think the thing that is difficult is the customs arrangements. That I don't think is easy to accept and I don't think it's
very easy for the EU to accept that you would have British officials raising taxes for the EU.
QUEST: Right, but I am not ...
LAMONT: But that's part of it.
QUEST: Right, but at the end of the day, this thing lives or dies by how the people vote behind me.
LAMONT: But I'm saying I don't think they would easily accept that. I don't think the - so I think Chequers will have to be significantly altered
one way or the other.
QUEST: If the ...
LAMONT: And I think you will know what that mean - there are all sorts of hybrid versions, but I think they'll have to move a bit more towards
Canada, plus, plus, plus. But can I just say this. I don't think this is the end of the road. Honestly, I wasn't surprised at all. I always said
from the beginning, it will a walkout. It will break down. I wouldn't be surprised if it doesn't break down again in October and then we go right to
November and maybe beyond November.
This was always going to happen. But, you know, the idea that this is going to be immensely damaging to us and not hurt them if there is no deal.
First of all, I think that's nonsense - but the economies that would really suffer would be Holland, Ireland, Denmark, Germany. They would be really
badly affected, and they don't want that.
QUEST: So on this point of how the negotiations would go, you sat through more EU meetings than I suspect you ever wished you had to.
QUEST: In your days. And negotiations during those heavy days around - what does happen right at the end?
LAMONT: Well, I think Europeans tend to maintain a very united front and then actually the real negotiation begins at the very end. Don't forget
this, there is one crucial thing. The agreement is going to be two bits. A significant withdrawal agreement and probably a rather vague trade
QUEST: Can you live with that?
LAMONT: Yes, yes, yes. But the point is, they won't get any money if there's no agreement and they are desperate for the money.
QUEST: Thank you for coming out this evening.
LAMONT: Thank you.
QUEST: Good to see you, thank you very much indeed, Lord Lamont. And now over to Wall Street, where the Dow and the S&P are on track to close out
records in less than an hour's time. Both hit all-time highs earlier in the session. This would be the Dow's 100th record close since President
Trump's election and - however, the first since January.
Paul La Monica is tracking the numbers in New York. As you look at the numbers, Paul, what's driven it today?
PAUL LA MONICA, CNN CORRESPONDENT: Yes, I think you had solid economic numbers, a drop in jobless claims that has people excited about the
prospect for the US economy continuing to show steady and solid growth. And then Apple, this is a stock we were ready for the new iPhones. People
are going to be able to get them and the Apple stock rebounding as well.
That of course, helps lift the Dow, which is price weighted, so there's just optimism about corporate America, corporate earnings and the steady as
she goes US economy. And I think people are looking at that more than trade war fears with China right now.
QUEST: I mean, if we just look at the Dow 30, which we're showing on the screen, only one stock in the red, Paul. Peter Tuchman at the exchange
made it clear he was still very buoyant.
(BEGIN VIDEO CLIP)
PETER TUCHMAN, FLOOR BROKER, QUATTRO M. SECURITIES INC.: The fundamentals of the market are strong. Whatever happens with elections and what happens
with China is that negative narrative has been disengaged. I've often talked to you about it, what goes in Washington and what goes on in the
stock market don't often go in concert. Sometimes they go separate directions, and I think that's what you're seeing here.
(END VIDEO CLIP)
LA MONICA: Yes, I think - oh, I am sorry.
QUEST: If that's true - no, no, go ahead, go ahead, please.
LA MONICA: No, I was going to say the one thing where Peter makes a great point that right now the markets I think are ignoring a lot of the trade
rhetoric and the Trump tweets. The one thing that could come into play, those midterm elections in a few weeks, if more Democrats gain control in
the House and the Senate, that could potentially unnerve Wall Street a little bit.
LA MONICA: Because I think any thought that Democrats have more power in the House and Senate, even though that means more gridlock, it might also
mean maybe that the chances of the Democrats winning in 2020 as well would be higher and I think that might be a scenario where Wall Street wouldn't
be too thrilled. But we're still a few weeks away from that, obviously.
QUEST: We are indeed and we shall hold our press and wait and watch. Paul La Monica, thank you. Now, a rally in US stocks and it was followed by a -
or rather it follows a similar pattern that started in Europe. All the major markets closed higher. The greatest gains, they were seen in Paris.
Emmanuel Macron is having a very good run with the market, even the FTSE was up by half a percent.
Britain's Prime Minister insists there will be no second referendum on leaving the EU. Some people think she is wrong. Gina Miller, for example,
who took the UK to court over Brexit. Gina Miller will be with me in a moment, and please get your phones ready or your laptops or your iPhone or
your iPads, whatever you've got. We want you to weigh in. Should Britons be allowed to turn back the clock to June 23rd, 2016; cnn.com/join and get
your phones ready.
Now, even though Saltsburg is the birthplace of Mozart, the mood was far from harmonious today. European leaders from major to minor say a no deal
Brexit will hurt Europe, as well as the UK. You heard Lord Lamont make that point just a moment ago.
They made their thoughts on Brexit perfectlyclear, thoughts that reached this crescendo.
(BEGIN VIDEO CLIP)
XAVIER BETTEL, LUXEMBOURG PRIME MINISTER (Through a translator): No deal is bad. It's a catastrophe for the UK and it's bad for Europe. And I
still hope we can find a deal.
CHARLES MICHEL, BELGIAN PRIME MINISTER: I think the British is a very important and definitely a challenge for UK but also for the EU.
SEBASTIAN KURZ, AUSTRIAN CHANCELLOR: It is a lose-lose situation to have a hard Brexit and it will be much better to have a compromise between the UK
and the European Union.
(END VIDEO CLIP)
QUEST: Brexit is six months away and the prospects for quick agreement look bleak. Should Britons be allowed to do a do-over? A new vote? Well,
get out your phones. We're talking to Gina Miller about this in a moment, but get out your phones, tablets, computers, and join in. Do you agree
with the European leaders who say, yes, or Theresa May who says absolutely not?
QUEST: Or basically should Britons get a new vote on Brexit? cnn.com/join and cast your vote. We'll discuss the results in a moment, should they get
a new vote. Gina Miller, how would you vote? You're campaigning, but you're campaigning for what, a new vote?
GINA MILLER, ANTI-BREXIT CAMPAIGNER: I'm campaigning for people to get the information to make an informed choice, which is, look at the real facts in
front of us. Whichever deal Mrs. May manages to get, which I think looks very unlikely today. No deal, which everyone is saying, we have six months
and empty threats. We can't deliver on no deal in six months because no deal means no transition so we would literally be on our own.
QUEST: Right. But it's worth saying you believe that the UK should stay in the EU?
MILLER: It's not up to me. I think people have the right to make the choice.
QUEST: No, no. But I think it's helpful to know where people stand on the issue.
MILLER: Yes. And I think at the moment there is no option that is better than the special deal we already have.
QUEST: Do you mean staying in?
MILLER: Yes, but it's not just staying in. Because status quo is not going to work. We have to have an agenda for what staying in means. So I
mean, I've launched a campaign on Friday which says "Remain Plus," which is what does that do? So, it's almost a remain deal.
QUEST: But the EU refused to us or to give the UK that in the Cameron talks.
MILLER: Well, yes.
QUEST: The Cameron talks, you're saying that if you didn't reduce, so they would come back with a better offer?
MILLER: Look, Cameron, was what? We were talking two years ago for the referendum. What Cameron tried to get was in the past. Europe is a very
different place now. Look at the issues that it is facing with the rise of populism and immigration. They are willing to talk because actually no
deal, a bad deal hurts everyone.
QUEST: The Prime Minister says she will not re-run the race.
MILLER: Well, the Prime Minister, I have to say at some point she's going to have to listen because so far, Romaine (ph) is saying that Chequers is
dead, the EU is saying Chequers is dead, the leaders are saying Chequers is dead. At some point, she's going to have to listen to the voices.
QUEST: But even if she does - remember, cnn.com/join, should Britons get a new vote on Brexit. You would vote yes, I assume that they should get a
MILLER: Absolutely. Because at what other time in life - just think about it, buying a house. You get your survey back and you would actually
say, "Do I leave or do I go and buy this new house."
QUEST: But your court case was specifically designed to ensure Parliament had a vote.
QUEST: So you've got - you won. It went all the way up to the Supreme Court and you won.
QUEST: Parliament will have the vote.
MILLER: Ah, but will they? No, no.
QUEST: The Prime Minister said they will.
MILLER: No, the Prime Minister has not said that. The Prime Minister has said the Parliament will have a meaningful vote on the option or no deal.
She has not said that there are going to be all the options and she is not certainly said that it's going to be a free vote. That is - the Parliament
is voting with one hand behind its back, that's not proper a mill ...
QUEST: Well, she has. I mean, are you not - are you being suspicious about the way the vote will be arranged? It seems to me that ...
MILLER: I would be very suspicious.
QUEST: Well, it seems to me that whatever comes down from the next summit or whenever they reach an agreement is put to Parliament on a
straightforward, "Do you want this or to you not?"
MILLER: Well, actually, that's the biggest problem of all because there is no arithmetic in Parliament for anything at the moment, so she can't get
anything through. So what does that leave? If parliament is paralyzed, it has got to go back to the people.
QUEST: It won't.
MILLER: Why won't it?
QUEST: Because they have already made it clear that they're not going to do.
MILLER: Who said that?
QUEST: The Prime Minister has said it.
MILLER: The Prime Minister says lots of things and changes her mind the next day.
QUEST: Even the leader of the opposition, Jeremy Corbyn has danced around and basic ...
QUEST: His position is changing, but even he has said there won't be a second referendum because to do that would insult the British public who
MILLER: Well, democracy is not just one day, it evolves. And actually, people know things. All of us know things we didn't know two years ago.
And having a validation of the options in front of us is the most democratic thing you could do.
QUEST: I need to ask you, you fought the court case because you thought it was the right thing to do.
QUEST: It should be expensive to do. Why are you still involved in this in a sense, having won once. Why haven't you sort of decided I've done my
MILLER: I absolutely shouldn't have even done the court case because it should have been the opposition that had brought that and kept the
government's feet to the fire. But at the moment, I now have a platform as a transparency campaigner because it's what I've been for 20 years. All
I'm asking for is for the politicians to be honest with the British public. These are the facts and make an informed choice. That's not happening.
QUEST: Gina, look at the results - 85% of people voting on cnn.com/join, 85% of viewers tonight say voting is now over, Britons should get a chance
to vote again on Brexit. You're not surprised.
MILLER: I'm not surprised because actually what you said about the Prime Minister and Jeremy Corbyn, every single poll, every tour I do around the
country, people are saying, "We want to think again."
QUEST: We thank you for coming out on an evening like this.
MILLER: You're very welcome.
QUEST: Thank you very much indeed. As we continue tonight later in the program, plenty of ranting and raving on Brexit. Amazon and President
Trump on the spoof news reporter, Jonathan Pie. He is the political satirist, Tom Walker, who will be joining me here at the green. It is
"Quest Means Business" live from Westminster.
Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS from Westminster in a moment when Israel tries to get its high-speed rail moving
after ten years of delay, if you wonder what correspondents get up to, people like myself during the ad breaks, one comedian has you covered. I'm
joined by Jonathan Pie into the truth into what we really think. Before that, this is CNN. And on this network, the facts always come first.
Three people are dead and several more wounded in a shooting in the US state of Maryland. It happened at a drugstore distribution facility. A
source close to the investigation says the suspect is a disgruntled employee. The shooter is said to be in critical condition after shooting
herself in the head.
The lawyer for Christine Blasey Ford says she would be prepared to testify next week if terms are fair, but she would prefer an FBI investigation
first. Ford has accused the US Supreme Court nominee Brett Kavanaugh of sexual assault when the two were in high school. An e-mail to the Senate
Judiciary Committee, Ford's attorney has asked to discuss conditions.
South Korea's president, Moon Jae-in, has returned from his summit with Kim Jong-un and says the North Korean leader is eager to get on with
denuclearization. Mr. Moon says he hopes a second summit between Kim and Donald Trump would take place in the near future.
Pop star and politician, Bobi Wine has returned to Uganda.
Wine who is set to face treason charges was speaking with a crowd of supporters outside of his home. Local police confirmed to have Wine's
supporters are among several people to change, attempting to welcome him at the airport.
Wine traveled to the U.S. this month to receive medical treatment for injuries he said he received in military custody. Banks, another financial
institution have had enough of the uncertainties surrounding Brexit. They are moving out of Britain, relocating to the so-called -- on the so-called
issue of pass-porting until that is solved.
Now, some of the biggest names in banks have announced a shift for investment. Either to Frankfurt, to Warsaw and the rest of Europe is
running out the red carpet too. These are the countries which are gaining the most. Germany has got Deutsche Bank, Citi and Standard, Poland's Wood,
Credit Suisse, Belgium's got JPMorgan Chase and Goldman Sachs.
France has been going hard at it, and those got UBS and HSBC. And Ireland interestingly got the Bank of America and Barclays, all of whom are gaining
at London's expense. Mark Littlewood is director general at the Institute for Economic Affairs, he joins me now here with having to be -- good to see
MARK LITTLEWOOD, DIRECTOR GENERAL, INSTITUTE OF ECONOMIC AFFAIRS: Good evening.
QUEST: Now, there's the facts, the reality is until pass-porting is sort and the U.K. is not going to get pass-porting rights, more jobs from the
city will go.
LITTLEWOOD: This all depends. I mean, it's big business and the city doesn't like uncertainty, I hear that, and we're in a period of
uncertainty, no doubt about that, no point in denying that.
I don't agree however, that we are seeing a sort of flood from the city of London to Frankfurt, or that Frankfurt is going to be the new major
financial capital in western Europe in years to come. I think there's very thin evidence flood.
Now, that is not to say that we can sort of just shrug our shoulders --
QUEST: Yes --
LITTLEWOOD: And say a lack of passport will not matter.
QUEST: Right, but let's just look at Chequers, financial services was not part of Chequers, that is just for industrial goods.
LITTLEWOOD: Yes --
QUEST: The idea of a single market or at least some form of --
LITTLEWOOD: Yes --
QUEST: A common rule book. So whatever happens, even if the Prime Minister gets her way, the financial industry is not going to get
preferential access to the EU. And we know that the ECB and others want to withdraw Euro clearing from Britain.
LITTLEWOOD: No, that's true, these are all reasonable threats for you to raise, and I agree they are reasonable threats.
QUEST: They're promises --
LITTLEWOOD: But I -- there's a question of trade off here. It is all -- it is essentially a zero some kind here. The more difficult our
relationship gets with the European Union for example if pass-porting rights go or there are tariff barriers in the worst case, the trickery it
gets to trade with the European Union.
However, the easier it gets to start to strike deals around the rest of the world, and the easier it gets to set our own financial regulations. So I
can't speak for whether this is median term plan of the government, but if you were to look at recreation -- regulations such as MiFID II, those are
quite damaging I would suggest of the financial services industry of the United Kingdom.
And in the world in which we're outside of the EU, we have the power to change the financial regulatory climate --
QUEST: Oh, no --
LITTLEWOOD: In any way we wish.
QUEST: Right, we do, the U.K. does have the right to, let's take MiFID II, it's a good example, but if MiFID II is the preferred dominant reg order
that the required regulations standard in the EU and the U.K. does not comport to it, then British banks will not be able to do business in the
LITTLEWOOD: Well, that is exactly the same as our British banks and American banks. I mean, we're not part of a single market with the United
States of America --
QUEST: No, but it's only -- it's only fair 32 miles across the -- but anyway, let's talk about car companies in that situation. And let's look
at Aston Martin for example, their prospectus, their IPO prospectus warns of Brexit risks, specifically says they're just in time, form of
manufacturing will have significant risk.
BMW is planning a post-Brexit maintenance shutdown, Jaguar, Land Rover is moving to a three-day work week. Now, I know you're not here to defend the
car companies. But this is real damage being done.
LITTLEWOOD: Well, hang on a second. Well, you'll always be able to find what you have. Companies that are sensibly making contingency plans and
probably private sector companies I think will make a rather better contingency plans than her majesty's government actually if you deal with
worst case scenarios.
Of course, every serious company should be doing that. You cannot derive from that, the worst-case scenario will prevail --
QUEST: But the argument --
LITTLEWOOD: Any major car companies is going to prepare for the worst-case scenario in a period of uncertainty very wise too, so do.
[15:35:00] QUEST: The argument of course is that never mind worst-case scenario, the best case scenario in a post Brexit Britain certainly
immediately in the medium term is not good.
LITTLEWOOD: Oh, I don't agree with that at all. Immediately, I might agree with you. The price of going for Brexit is a period of uncertainty
that we have certainly had in two years after the referendum. I mean, the economy hasn't tanked really. I mean, employment is up, growth is ticking,
and not about the same rate that it was prior to the referendum.
So there's no form of disaster, but there has been a period of uncertainty which I expect to continue for a year. Over the medium term, what we then
depend, what will be crucial is whether we get our own regulatory environment right, and what our trade relationship with -- not just with
Europe, but with the 93 percent of the world's population --
QUEST: Sure --
LITTLEWOOD: Who don't live in the EU.
QUEST: Once, let me ask you the question that we were asking at cnn.com- slash-vote. Should Britain -- should the British people be given a second vote? And I'll qualify by saying a second vote on the final deal. Because
two years ago, we had no idea what it would look like.
LITTLEWOOD: Yes, two years ago, we were essentially asked, do you want to get divorced? And the answer was yes, we do. We didn't ask the question --
and if you do get divorced, who gets custody of the children or which house do people live in or what is the marital settlement?
But the decision was clear, and broadly in the British constitution, it was clear, only 4 percent, it wasn't a landslide, but it was clear.
QUEST: All right --
LITTLEWOOD: I know the British constitution, referendums are supposed to be and this was built as a once in a generation event, and the government
was clear, that whatever you decide will be enacted. So it is my view that leave should be enacted. We should leave the European Union.
This does not preclude many years into the future changing our mind. In fact, the last referendum, we changed our mind compared to 1975. But the
idea that you give everybody a specific referendum vote on the specifics, I think it's quite wrong. We are likely to have a General Electric, I would
suggest within the next year or two.
That will be a people's vote --
QUEST: Too late --
LITTLEWOOD: The people will be entirely at their discretion to elect a pro-return party, a pro-robin(ph) party, although what they want. So
democracy has not ended, but no specific second referendum.
QUEST: It's good to see you, sir, thank you for coming --
LITTLEWOOD: Good to see you, thank you, Richard --
QUEST: Talking trade and talking tough, Donald Trump and Justin Trudeau are hoping that negotiators can reach a deal on NAFTA because time is
running out. I will speak to America's former Ambassador Bruce Heyman in a moment.
[15:40:00] QUEST: We are in the last hour of trading on Wall Street, and New York is heading for a record high. We're just about or we're very
close to the tops of the day, 1 percent up on the Dow, similarly, good strong gains on the NASDAQ and the S&P 500.
And if you look at the Dow 30, well, the Dow 30 just -- well, just about every stock in the 30. Look, those are all at 1 percent, every stock in
the 30 is showing, again, except for two. Chevron and Home Depot, one can only imagine -- yes, Home Depot that I can see, it's done.
One can only imagine that they've got unique factors, and even then, look at it, .08 and .09. Intel is on a tail, Walgreens is doing good, Caps
doing good, Boeing is doing good, strong day overall. Right now, the U.S. and Canada are staring at a deadline about the future of trade in the face.
They have until the end of the month to reach a deal on renewing NAFTA talks continue today in Washington. Bruce Heyman is with me; the former
U.S. Ambassador to Canada who joins me from Chicago. Ambassador, good to have you with us. Come on --
BRUCE HEYMAN, FORMER UNITED STATES AMBASSADOR TO CANADA: Good to be here - -
QUEST: What requires -- what needs to be done -- what needs to be -- thank you, what needs to be done to bring Canada on board with the United -- with
Mexico and the U.S.?
HEYMAN: So there are several things that are out there that are publicly known, and one new thing that I think is now just coming out which I'd like
to touch on. First, dairy, the president mentioned dairy, Canada has supply management and the U.S. wants greater access.
Second, cultural exemptions. Those who know Quebec and know the country know how important culture is to them and protecting it. Third, dispute
resolution. You need to be able, that if there's a dispute between the U.S. and Canada to resolve that with an independent arbitration panel.
Now, there's something new that has popped up, and it shouldn't be new at all. The president has threatened on a number of times, Canada, that he
will tax their autos and auto parts. Using this provision within our code that --
QUEST: Right --
HEYMAN: Basically says for national security. The Canadians are going to want an exemption if they do a deal with the U.S. from 232 from any threats
with regard to tariffs on autos, auto parts --
QUEST: Right --
HEYMAN: And the existing tariffs on steel and aluminum.
QUEST: Is it your feeling that the president actually wants out of NAFTA and will look for any excuse not to do it, and would prefer to do it
bilateral with Mexico and if necessary a bilateral with Canada.
HEYMAN: Yes, that's my feeling exactly. And every bit of behavior leads one to come to that exact conclusion, Richard. The fact of the matter is
the president used that language during this whole campaign, leading up to the presidency. He's used it throughout his presidency and every bit of
behavior which would have led to potential agreements in deals in 2017 and '18.
They're behaving in a way that I don't think that they want a deal. And the proof is going to be on the pudding here this next 10 days because if
we don't get a deal, it's going to be because the U.S. doesn't want one. Because I think the Canadians are going to put down just about everything
they can do.
QUEST: What point should U.S. industry or Canadian, American industry, at what point should they start making preparations for no deal. In the same
way, for example, over here that companies on both sides of the English channel are preparing for a no deal Brexit.
HEYMAN: I think companies are beginning to make these decisions, given this answer, and they're already. They're changing their supply lines, you
know, we have such an integrated supply chain that the fear that many of these companies have are that the supply chain is going to be disrupted.
So they're looking for other sources. I heard you just talking about Brexit and thought process there, it's not that different here, and I will
tell you, we're in this 10-day window that I think will be a defining time, and it will be unfortunate for all those green arrows that you talked about
in the market.
I think the market is assuming a deal is going to get done --
QUEST: Right --
HEYMAN: And that's why it's behaving so well.
QUEST: Ambassador, thank you, good to see you, sir, we'll talk more about it, stay close by to us as we try and understand the implications of what
comes next. Now, we all know how frustrating it can be when trains are delayed, late by minutes, sometimes even hours.
Imagine how it feels when a train is 10 years late, that's the case in Israel right now as Ian Lee explains.
[15:45:00] IAN LEE, CNN CORRESPONDENT (on camera): This train is Israel's largest transportation project at a whopping $2 billion. Boarding is a
step into the future alongside the pass. Quickly ferrying pilgrims to the Holy City of Jerusalem or businessmen to a meeting in the tech hub of Tel
Cutting the commute from one to two hours to less than 30 minutes. It isn't the first train to travel from the Mediterranean plains to the Judean
hills, that was built by the Ottomans. But it is by far the most advanced -- and consider this, Jerusalem station is one of the top five, the best in
Built to double as a bunker to withstand a nuclear blast or chemical attack. Prime Minister Benjamin Netanyahu joined the train on its run,
praising the historic day.
BENJAMIN NETANYAHU, PRIME MINISTER, ISRAEL (through translator): I always believed that it would be possible to join Jerusalem to a national network
of trains. And not the line of the Turkish trains that I traveled on as a kid. That moment has arrived.
LEE: The double-decker pulls smoothly out of the station. Though it does not throw you in the back of your seat fast, but it's still a respectable
160 kilometers per hour. It's roughly about 100 miles per hour.
(voice-over): Much of the journey travels underground, possibly why it's ten years behind schedule. Israel railway official train, bureaucratic
(on camera): The scale of this project is immense, that's kilometers of bridges and tunnels. But it isn't without controversy. Parts of this
track runs through the occupied West Bank.
(voice-over): When it's up and running, officials predict 50,000 people a day will travel between Jerusalem and Tel Aviv with a stop at Ben Gurion
(on camera): If you're hoping to book a seat on this train, you're going to have to wait, as it isn't opened to the public for another few months.
Ian Lee, Cnn, somewhere between Tel Aviv and Jerusalem.
QUEST: As we continue tonight, when we return outside of parliament to the stomping ground of my next guest is the spoof news reporter who literally
is as angry as hell and won't take it anymore. Jonathan Pie has the headlines in a moment.
[15:50:00] QUEST: Spoof TV reporter is fed up with Brexit about -- and with every other end of the world has become a viral hit on YouTube. It's
Jonathan Pie is played by the actor and comedian Tom Walker and he's reinvented political satire for the social media generation.
He's engaging young people in politics and getting views in the hundreds of thousands and millions. Now, touring the U.K. and America as a classic
case of a reporter who pulled out his earpiece and gets angry with the story.
TOM WALKER, ACTOR & COMEDIAN: And that was facts --
QUEST: This is the world of Jonathan Pie, a fictional TV reporter with an axe to grind when he thinks the viewers not watching. His Facebook videos
are an insider's view of TV news, telling his producer what's wrong with the world, and we're all in on the act.
WALKER: According to you, government, it's 14 percent of the population think Brexit negotiations are going well. I suppose they are if you're
QUEST: From Barnier to Trump on illegal immigration.
WALKER: How can some ex-strippers jacket cause as much outrage as locking, scared, put(ph) kids up in cages. A policy which Trump presumably thought
would go down well, but it turns out that even most Trump supporters draw the line, incarcerate on purpose(ph).
QUEST: The media isn't left out, he rants at Rupert Murdoch.
WALKER: Look at "Fox News" in the USA, he's termed supposed journalism into a potent and nakedly partisan form of political propaganda.
QUEST: And he attacks the left's reaction to the right.
WALKER: If you don't listen to Bannon, he doesn't just -- go away. No single Bannon idea in history was ever defeated by simply not listening to
QUEST: His frustration has helped make him go viral.
WALKER: You push people to the far right by telling them they're already there. Bring it on, Owens(ph) -- thanks Maggie, well, this Summer was
literally a scorcher.
QUEST: Tom Walker also known as Jonathan Pie joins me, good to see you, sir --
WALKER: Oh, thanks for having me here.
QUEST: How do you decide what you're going to attack?
WALKER: Well, quite often is the difficult one because obviously the news may have been all the time for this coming new stuff. But I like to think,
once a month, you can pick Brexit, I try not to do Trump too much, because there's so much, so sometimes, I have to leave them alone.
And sometimes it can be something simple like -- for example, this week, it was about Amazon and they not paying tax where you can have more broader
issues like freedom under speech being under scrutiny in our country and across the --
QUEST: Why did you choose because I heard a story of how it started, but why did you choose the idea of a television reporter, pulling his earpiece
out and then ranting at a mythical producer, Tim, or in my case Tom.
WALKER: Well, of course, simply, from an acting exercise, I wanted to create my own work and actually do stick a camera here and you got big Ben
in the background, then I'm hearing a suit. You've told a lot of the story already, and so I don't have to make a huge film about it.
So it was to do with ease really, and very quickly, I realize it was the politics that people were tuned in for as long as -- as well as the
QUEST: The colorful language, I mean, we've had to leave that quite a lot --
WALKER: I'm sure you have --
QUEST: Which seems to go along with the territory.
WALKER: Yes, a little bit, yes.
QUEST: Is anything off in it?
WALKER: I don't mean so, and I'm certainly never here to offend them, I certainly don't talk controversy, but I think --
QUEST: Well, except when you work for Russia today, but --
WALKER: Well, I mean, yes, you could say that.
QUEST: That was a mistake --
WALKER: No, I don't, I'm not sure it was a mistake. They paid me a little bit of money to -- for my work which was fun. But I'm --
QUEST: Do you find it -- do you find -- a very difficult thing to do because I've watched your work -- in fact, let's have a watch to see what
you said, we talked tonight about Brexit, let's have a listen to what Jonathan Pie said about Brexit.
(BEGIN VIDEO CLIP)
WALKER: Who thinks Brexit is going well, no, stop piling food and medicine, yes, let's take back control, guys, adequate food for all. This
must be the Brexit dividend we've all heard so much about. Soon, that EU bottom mountain we used to hear so much about in the '90s, they all look
like pretty rich pickings!
(END VIDEO CLIP)
QUEST: You're a modern-day version of I'm mad as hell and I'm not going to take it anymore. Paul Costa(ph) --
WALKER: Yes, how --
Yes, he certainly, that certainly an influence --
QUEST: Yes --
WALKER: Yes --
QUEST: Network --
WALKER: Yes --
QUEST: Is that what you would say you are? You are the talisman for the angry man on clap of --
WALKER: Someone just called me as Howard Bill(ph) for the YouTube generation, and I'll take that.
QUEST: Are you surprised that the number of hits that you're getting from a generation that we're told -- the snow fair generation, the apathetic
generation, those who are not particularly interested.
WALKER: Yes, but it's fascinating times, maybe 10 years ago, it wouldn't have worked. Brexit, people want answers, it was a surprising result no
matter which way you voted, it was surprising. Trump, people want answers, people can't understand why people voted for him, other people can't
understand why you would hate him.
[15:55:00] And --
QUEST: Because doesn't that --
WALKER: Cut through that --
QUEST: Right, but I cut through that with a point of view, are they always your points of view as, you know, does Tom Walker and Jonathan Pie agree,
is he basically your voice piece?
WALKER: Broadly we're left, broadly we think that's a -- I think there's a problem with the left shutting out debate, so I'm with them on that. I'm
not a fan of the tourists, I think Trump's presidency is extraordinary to comment on whether you're a satirist or a journalist or a member of the
So it's fascinating times --
QUEST: But you are reinventing political satire.
WALKER: I wouldn't say I would, I think people think -- let all the generation go -- oh, a man shouting at the tourists, I remember that, and
the younger generation think it's brand new --
QUEST: Right --
WALKER: But I wouldn't say --
QUEST: We've just got a 28 -- 20 seconds or so to the break, there's the camera, take a look down that one and take us to break in Jonathan Pie
fashion to my producer Tom.
WALKER: Well, frankly, Tom, we'll have a profitable moment after the break, right? Where's the part?
QUEST: Indeed, we will, good to see you, sir.
QUEST: Tonight's profitable moment from Westminster, Jonathan Pie pokes fun at politicians and the political satire it is today's life. He's got a
lot of material to work with, you heard about it, some of it tonight on QUEST MEANS BUSINESS.
When you look at what's happening with Brexit at the moment, it is an absolute total mess. The Europeans are digging in, the Prime Minister
Theresa May has no other option, business is now starting to make serious post-Brexit plans and arrangement that could involve of course moving out
of the U.K.
And everybody is hoping and everybody is praying that really what will happen is, at the final meeting, whether at the October summit or indeed at
a November meeting or indeed sometime before January, the two will finally reach a deal.
But it is just the hope at the moment because so far the deal on the table, the planning place will not fly. That's a fact and both sides need to deal
with it. And that is QUEST MEANS BUSINESS for tonight, I am Richard Quest in London.
Whatever you're up to in the hours ahead, I do hope it's profitable, I will see you back here of course tomorrow.
The closing bell is ringing on Wall Street, the day is over, records on the Dow and the NASDAQ and the S&P 500.