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QUEST MEANS BUSINESS
Facebook Is On Defense As Washington Goes On Offense; The Number Of People Missing In Northern California Has Sky Rocketed To More Than 600, Close To 10,000 Homes Have Also Been Destroyed; Theresa May Filled The Post Of Brexit Secretary Appointing Stephen Barclay; President Trump Says He has Written Answers Himself to Questions from the Special Counsel Robert Mueller; U.S. Prosecutors Accidentally Reveal Assange's Indictment; Israel Set to Hold Early Elections; Funeral Prayers Held for Jamal Khashoggi in Istanbul; CNN's Jim Acosta's Press Pass Temporarily Reinstated; Malaysia's Next Prime Minister Anwar Ibrahim Sends a Dire Warning to Goldman Sachs; Boeing Faces Scrutiny Over Safety Concerns; Markets Higher After Trump Reveals China's Interest in a Deal. Aired: 3-4p ET
Aired November 16, 2018 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA NEWTON, CORRESPONDENT, CNN: Yes, you're getting sick of me saying this. Another up and down day on the market. We are in the final hour.
Could still eke out that gain that you see there. Investors are reacting to comments from President Trump on trade. Tech shares through meanwhile
are tumbling. Its Friday, November 16th.
Facebook is trying to fight its way through a crisis as calls for regulation and management changes grow ever louder. Theresa May gets a new
Brexit minister but her own future remains tenuous. Investors are watching carefully. And a problem with Boeing 737 Max will be a problem for
Brazil's largest airline. CEO of Gold tells me why this plane is key to his business plan. I'm Paula Newton and this is "Quest Means Business."
Good evening. We are in the final hour of trading on Wall Street and the UK stocks dipped slightly and bank shares dipped quite a bit while the
pound rose at the end of what was an incredibly rough week. Wow, is that an understatement. We will look at the money and the very volatile
politics later this hour, but we begin with Facebook.
The company is on defense as Washington goes on offense. Mark Zuckerberg is gaining lots of unwanted attention after stunning allegations in "The
New York Times" suggests Facebook was dishonest about Russian hacking. Now, the stock, believe it or not, down now again 4% at a 52-week low.
Senator Mark Warner who serves on the intelligence committee says the days of no regulation are over for Facebook and those like it.
(BEGIN VIDEO CLIP)
MARK WARNER, US SENATOR, VIRGINIA, DEMOCRAT: They've got to come to the table. So far what they've said is, "Yes, yes, we want to work with you,
but when we get the specifics," there's not been a lot of give on their side, but the notion that the wild, wild west days of no regulations at
all, no guard rails just can no longer exist. They are going to work with us though to get the appropriate guard rails.
(END VIDEO CLIP)
NEWTON: Brian Stelter is here. Brian, you just heard the senator there. The calls have been growing ever louder in Congress for sure. If the - the
debate has always been this, if there is regulation, what will it look like?
BRIAN STELTER, CHIEF MEDIA CORRESPONDENT, CNN: What would the actual form this would take, I saw a headline today that said, this Facebook problem
has Washington's full attention, but attention is easy. The solution is much, much harder. I think there are Democratic senators that have certain
ideas, some would even say break up the company. There are Republican senators that have very different ideas. And so there's some
bipartisanship about the problem, but not necessarily about the solution.
In the meantime here, I think you have to think about Facebook's leadership, about Mark Zuckerberg, the Chairman of the Board, Cheryl
Sandberg, the COO, both of them came out looking very badly in this "New York Times" expose and yet, they've been defending each, standing up for
each other and the Board seems to be supporting them fully. Of course, they have a lot of power on the Board.
So there's a lot of questions externally about whether these are the right leaders for Facebook's future or that they are the right captains of the
ship. But it seems internally, those questions are not being addressed, so for all the talk about changes and shake-ups, you know, we'll see, if any
of it takes form of action.
NEWTON: And Brian, there had been so much talk on the fact that look, Facebook's going to shake this off. And yet, when you see what's happening
with the stock price, but also see it growing louder, the need for regulation, do you think materially we could see a different - not just a
different Facebook, but certainly a different tech architecture when it comes to these social media companies in let's say a year or two?
STELTER: Yes, I mean, think about this week, the week started with Amazon in HQ2, where is Amazon going to put its tentacles? Where is it going to
put its next headquarters? All week we've been talking about the power of these tech giants and how they're growing ever more powerful. That is
something that concerns a lot of Americans and yet, most of those folks also consume the products, use Amazon and love Facebook.
I do think Facebook going forward, though, we all know it has a problem with growth, the growth has been slowing down, users have not been quite as
addicted to Facebook as they had been in the past. So all of these stories and all of these concerns about Facebook's missteps in the past, I think
it's an open question about how much of an impact it has today on the company.
We know for example, advertisers are concerned, they're making a lot of noise. We've talked about the regulators, about senators making a lot of
noise, but what it translates to, that's always been the harder part of this. It never seems to translate to anything meaningful. People continue
to use Facebook.
NEWTON: Yes, it will be interesting to see how fraught those decisions are when you have this divided Congress as well.
STELTER: Totally, I feel like these companies, you know, they say they're making progress, they are improving things now, their pasts are really
haunting them now.
NEWTON: And yes, that whole "The New York Times" expose really put a fine point on it and a lot of it even on reporting that's been on this network
for many months. Brian, thanks so much and have a great weekend.
STELTER: Thanks, you, too.
NEWTON: Now, amid growing calls for management changes at the top of Facebook, Zuckerberg said in a conference call, "we didn't know what was
(BEGIN VIDEO CLIP)
MARK ZUCKERBURG, CEO, FACEBOOK: I was not in the loop on a bunch of these decisions and I should have been clear of that. I think that the team has
made a bunch of these decisions and I think Cheryl was also not involved. She learned about this at the same time that I did and we talked about this
and came to the conclusion about what we should do here.
Overall, Cheryl is doing great work for the company. She's been a very important partner to me and continues to be.
(END VIDEO CLIP)
NEWTON: Kyle Jensen is in New Haven, Connecticut, for us tonight. He's the Associate Dean of the Yale School of Management. That's the killer
word there, management. I cannot believe, Brian Stelter and I were just commenting as he got off the set, this was a CEO who admitted that he was
not in the loop and somehow that absolves him, do you think it should absolve him?
KYLE JENSEN, ASSOCIATE DEAN, YALE SCHOOL OF MANAGEMENT: Well, it certainly doesn't absolve Zuckerberg, the buck stops with Zuck. Instead I think it's
- it is rather mature of Zuckerberg to admit that he was not in the loop and to admit some error and of course, if you read their blog post, they
seem to be earnestly addressing the issue.
But "The New York Times" reporting which is fabulous reels just an incredible failure to grasp the gravity of meddling in misinformation on
Facebook, on the platform. This is a failure that I think is most egregious.
NEWTON: When we say it's most egregious though, I think we have to pull back and put this into context. I mean, if there were, let's say, an
airline, we've been grappling with the issues with Boeing and safety standards after that latest crash, then people would be paying attention.
Do you feel as if there is a different standard here because it is a social media company as if the users and even the executives at Facebook do not
understand the gravity still of what they're up against and what they need to come to the table with in terms of remedy?
JENSEN: I think you're right about that and I think there's a few issues at play. One, there's a tremendous history of regulation in for example,
the airline industry that you used as your example. We just don't have that here.
Earlier in your program, we heard Senator Mark Warner speaking about the forthcoming regulation that will apply to social networks. I'm sure this
is something that will have adverse consequences in the short-term for Facebook's business. But in the long-term, this kind of thing might
provide - might be good for the industry, to render it a safe place. Right now it's kind of the Wild West and we don't know what the rules ought to
NEWTON: I guess from "The New York Times" expose though, what we learned was that they wanted to try and control the outcome of this one way or the
other. What do you think should happen and whether or not they should leave as executives, it is unlike unlikely they ever will. I mean,
everyone points out that Mark Zuckerberg has a big control over voting shares in his own company, and obviously, the Board, but what should it
look like in terms of what comes next, whether it's regulation or not and who should be the architect of that?
JENSEN: Well, I think it's clear that there will be many stakeholders at the table and I think it's a good and it's a right thing that many of the
technology companies be at that table forming policy that governs and regulates their industry and I think, Facebook rightfully has a place at
that table. If Facebook users were a nation, they would be the largest nation in the world.
Facebook, because of its incredible success, which is attributable in large part to Sandberg and Zuckerberg's leadership, they are the social network
that experiences this problem in the most grave fashion and so they've got a lot to say about how it ought to be fixed and something to contribute to
policy makers' decisions.
NEWTON: Yes, it's interesting though, we even had Tim Cook, the head of Apple saying that it was about time for regulation and he kind of pointed
the finger at companies like Facebook. It's interesting to see how all of these voices will come together in the months to come. I want to thank you
for your perspective. Appreciate it.
And now we move to the California town of Paradise, which is a scene of utter devastation after a wildfire burned it to the ground. A haze hangs
over its charred remains as you see there. So far 63 people have been confirmed dead as rescue workers continue to comb through the ash. This is
what's so alarmed us though today. The number of people missing in Northern California has sky rocketed to more than 600, close to 10,000
homes have also been destroyed.
Now as the search for victims in California's Camp fire continues, so does the search for its cause and this is crucial here. Power company PG & E
disclosed earlier this week that it had an outage on a transmission line just 15 minutes before the fire. Now PG & E shares are jumping today as
fears of bankruptcy subside, but they're still down more than 25% on the week over doubts the company's insurance can cover expected legal cost.
Now California regulators may have to step in. CNN's Paul La Monica joins me now and as likely why the stock is up, right, Paul, people are thinking,
look, even if PG&E isn't on the hook here, the state of California certainly is.
PAUL LA MONICA, CORRESPONDENT, CNN: Yes, and it could be controversial, Paula, if PG&E is found liable for the fire. Someone has to pay for these
damages and it may actually wind up being California consumers that are customers of PG&E because California has already gone this route before
where they had to build and Jerry Brown - the governor signed last year that attached surcharges to PG&E customers that basically were able to help
pay for some of the cost of fires last year, so you might wind up having these surcharges attached again if you do wind up having the utility found
liable, which has not been the case yet, but because I think people are doing the math, 15 minutes before the fire started, they had some
electrical problems. That's why Wall Street is worried that had they might be liable.
NEWTON: You know, in terms of utilities in California, this has been a notorious really in terms of the regulatory history, in terms of the
financial history. If you're a person right now in California, you just want to get to your house and rebuild.
California obviously has a substantial economy. It's a top give global economy even. Are there worries, though, that at this point in time
depending on what happens with these utilities in California, that it is going to be a tough thing for people - it's actually going to affect how
quickly people can get back on their feet after these fires subside?
LA MONICA: I mean, based on what we've seen, obviously the damage is substantial and your hearts has to go out to all of the people who have
been affected by this fire. Whether or not this is going to be something that cripples the state of California's finances that may not be the case
because it does look like consumers will be on the hook in some respect if PG&E is found liable. So it's not a bailout per se in the same way that
you had the US government giving taxpayer money to banks after the 2008 financial meltdown.
So it will be interesting to see whether or not there's a customer revolt, but at the same time, these are companies - electric utilities that are
vital to all consumers in California. You can't just let them fail. This is a case where these are companies that are probably too big and too
important to fail.
NEWTON: Yes, more likely too important to fail. In terms of regulator history though, why have we seemed to not have learned anything when we
just had the Napa fires last year as well?
LA MONICA: It is unfortunate that they just seem to be having these stop gap measures. I think there does need to be a longer term plan put into
place because it doesn't appear as if anything is going to change any time soon unless there is, as a lot of people call for, a big push to spend more
heavily to fix a lot of the nation's ancient infrastructure.
I think that's why you're going to see more calls potentially for some sort of congressional Washington solution with maybe an infrastructure bill now
that Democrats control the House and that's one thing they do seem to agree with, with President Trump.
NEWTON: Yes, and it is a good point, right? If it isn't mandated or if you're not getting some kind of a government subsidy, trying to get it
done, a lot of these companies, in terms of capital expenditure just weren't getting it done or couldn't afford to get it done. Paul, we will
continue to watch it through the weekend and really pray that all of those people find their loved ones. Appreciate it.
Now, in the final hour of trading this week, we want to have a look at those markets. The Dow jumped in the early afternoon after President Trump
said China was open to a trade deal that erased some of the earlier losses. Remember, we started the day out - definitely low for the week. The S&P
500 and NASDAQ are seesawing, though, and have been all week. I know it's a familiar story, folks. Shares in chip maker NVIDIA are sharply lower
meantime, that's after quarterly earnings significantly missed estimates plunging cryptocurrency values have hit demand for its digital mining
Plots, chaos, currency, volatility still to come as the political firestorm rages around Theresa May. We'll show you what her draft Brexit deal could
mean for investors and the wider European economy. We have team coverage next.
NEWTON: During the week of high drama in high office, Theresa May keeps calm and, in fact, carries on. Pressing ahead with her Brexit deal, the
British Prime Minister has been beefing up her depleted Cabinet and facing down demands that she resign. Now, today, she filled the post of Brexit
Secretary oh, so crucial appointing Stephen Barclay who has never served in the Cabinet before and Amber Rudd came back to her government as the new
Work and Pensions Chief.
Now, for all her absolute undeniable nerve, Theresa May's position is still tenuous. Twenty three MPs now have publicly revealed that they want the PM
to go, but it takes a total of 48 of them writing in to trigger a no confidence vote. Now, in Brussels EU officials don't seem nearly as
fussed. They're pressing ahead with preparations for a summit of European leaders on November 25th to finalize Mrs. May's Brexit agreement.
Political turbulence is still hitting the FTSE, though as you can imagine and you won't be surprised to hear the pound is of course still fragile.
Remember, it's Friday night and Mrs. May is thankfully getting a little relief and some support from a key Brexiteer. Michael Gove has been
expressing confidence in her draft deal.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: You have confidence in the Prime Minister, Mr. Gove?
MICHAEL GOVE, BRITISH ENVIRONMENT SECRETARY: I absolutely do. I have had a very good morning with a series of meetings with my colleagues here in
DEFRA just making sure that we have the right policies on the environment, on farming and on fisheries for the future. I'm also looking forward to
continuing to work with all my government colleagues and all my colleagues in Parliament in order to make sure we get the best future for Britain.
(END VIDEO CLIP)
NEWTON: And yes, you get to weigh in. That brings us to tonight's question at cnn.com/join. What's the best outcome for Britain? Should
lawmakers in Westminster push to keep Britain in the EU, accept Theresa May's deal or just drop out with no deal, that's called the crash out.
Never seems like a good option to me. Get your phones, laptops or tablets ready, go to cnn.com/join and make your pick.
Now voting is live. We'll get the results and update you with those results as soon as they come in. Now, in the course, we want to go to
those latest developments though in Parliament and at Downing Street, Nic Robertson and Bianca Nobilo join us. They have been following it all oh,
Such a long week, guys. Bianca, I want to go first to you. In terms of everyone seems to be taking a breather, everyone has gone home at least to
their constituencies. Theresa May still contemplating a no confidence vote you believe early next week?
BIANCA NOBILO, CORRESPONDENT, CNN: Yes, Paula. So MPs have returned to their constituencies, but it is an old adage which I used to hear when I
worked in Parliament, that weekends like recess could really cause one of two things to happen, either MPs go back to their constituencies, they
relax, they take a breather and they decide not to opt for those rash decisions like perhaps to put in a vote of no confidence letter for the
Prime Minister, or alternatively they have that breathing space and then they plot and they think and they're reinvigorated and they return ready to
take some decisive action, which of those two options most MPs will take remains to be decided and we'll see on Monday.
But, yes, discussion about whether or not there will be a vote of no confidence in the Prime Minister is very much live in Westminster. It has
been all week.
NOBILO: So, the main faction of arch Brexiteers here in the UK have be claiming for many months now that they have the numbers, that key threshold
of 48 letters to trigger a vote of no confidence in the Prime Minister and they've said that they've had those numbers for quite some time.
You mentioned there are 23 publicly declared letters, a question mark over how many have been privately put in, but yet nothing has materialized. So
we wonder if their bark is much stronger than their bite and actually, Paula, I spoke to a veteran Tory MP today who served under Margaret
Thatcher, and he said to me "Crikey, Bianca, a coup is just not what it used to be."
NEWTON: Not as easy and apparently not as tempting either, Bianca. Nic, to you now. Theresa May really was the star of the show all week. She
really held her nerve. She was incredibly calm. Refused to lash out and I have to tell you, Nic, it was something that the markets oh, so appreciated
even though as we get to it, there was still some damage.
I mean, Nic, how do you believe that outside of government, how people in Britain are feeling about her now and are feeling about the deal that she
has put in front of them?
NIC ROBERTSON, INTERNATIONAL DIPLOMATIC EDITOR, CNN: You know, people are still - I mean, plenty of people are still uncomfortable about the type of
deal that she's hammered out and she continues to say that this is the best one for the people. But what she has really achieved this week, I think,
is huge and it's not an easy thing to do in politics, but that's to have so many of the electorate in this country look at you and say, "Poor you,"
those three hours of absolute mulling she got in Parliament, you know, this week, she sort of stood up to it honorably, dealing with the issues
she wanted to deal with, passionately, answering questions but not getting angry, not getting put off from her stride and I think a lot of people have
come out respecting that.
So when Theresa May says ultimately she wants to get this deal back to Parliament and then it will be up to MPs to reflect on the way that their
constituents want them to vote when it comes to voting for this Brexit agreement, she will have within those constituencies now, Theresa May
herself, her stock has risen a little.
And I think that's true. What she's been able to do today and she was tackling this head-on, this issue of what do the British people think of
her by going on this radio talk show early in the morning, taking questions from voters, from the electorate and answering those questions directly.
She was taking them from MPs, she was taking them from journalists and now, she is taking them from the electorate.
By filling these Cabinet positions, by continuing to push forward, she has created momentum at the end of the week where it seemed that everyone was
trying to pull the rug from under her feet and I think she's being respected for that.
Of course, as they say, a week, 24 hours, one minute in politics at the moment feels like a long time and it may be several weeks before those MPs
go back to their constituents, but for the moment, for today, at the end of this week, she has got the respect of many more people in Britain.
NEWTON: Yes, Nic and both you and Bianca have a reprieve at least for 24 hours. You guys don't have to be reminded about those Sunday papers. We
shall all be hard at work at this I am sure for the next few days to come. I appreciate your analysis there.
Now, Brexit turmoil wipe billions off UK bank stocks. RBS shares lost more than 3%, Barclay's and Lloyds also ending in the red. Plus, Brexit
uncertainty has taken a toll of course as you can imagine on the pound. Currency strategist say the British currency registered its highest
volatility this week, certainly no surprise since the referendum back in 2016.
The UK's International Trade Secretary Liam Fox has been speaking to CNN, he has a message for his fellow conservative lawmakers over the draft
(BEGIN VIDEO CLIP)
LIAM FOX, INTERNATIONAL TRADE SECRETARY OF UK: I think that we have to wait until we conclude this process. I think the Prime Minister deserves
the right to put that case to the European Union. I think that the greatest price that could be paid would be to have no Brexit at all. I
think that would be a betrayal of the British people and I think it would have such a profound effect on our democratic system that you would see a
loss of confidence by the public in the democratic process itself. I think that is a far too high a price to ever pay.
(END VIDEO CLIP)
NEWTON: Okay, far too high a price to ever pay. The IMF meantime says the UK would lose about 6% of its GDP, 6%. What would be the impact on the
rest of Europe? A key question here I want to ask Carsten Brzeski. He is the chief economist at ING Germany. He joins me now live from Frankfurt.
I mean, I can only imagine what it's like sitting on the sidelines of what's going on in the UK right now, being anyone in Europe, perhaps
especially Germany, not having much control but still having to take it.
Germany has not had a good week in general as well given what's happened in the economy there. I mean, do you believe Europe can withstand this or do
you believe depending on what happens in Brexit, it can really tip the Euro zone ...
NEWTON: ... into recession?
CARSTEN BRZESKI, CHIEF ECONOMIST, ING GERMANY: At least in the short run it would have a clear and negative impact on the Euro zone. Just imagine,
we would get a hard Brexit at the end of March, early April, second quarter of next year. We are also going to have European elections. We still have
unsolved issues surrounding Italy and we have a kind of faltering economic recovery so the Brexit could tip the balance towards a down swing,
although, in the long run, I think Brexit will be more harmful for the UK than for the European economy.
NEWTON: And that's certainly one message that Europe has tried to impart, but in terms of the risk factors, I know you said in the short-term, you
know, some people have pointed out and just said, "Look, this is - given everything Europe already has to deal with, any interruptions with trade,
with the UK would significantly damage its resiliency," to what we thought Brexit would even look like even just a few months ago.
BRZESKI: I think if you just look from the perspective of economic growth, so what would happen in case of a hard Brexit, we would clearly see a
disruption of supply chains of companies who deal with the UK, and whether they produce out of the UK to continental Europe, so there would be clearly
losses for companies. There would be losses for banks because all of a sudden banks would have to move people or business from the city to
continental Europe. There would be a short-term impact.
But I think - this could also be - we've seen this in the past with other shocks. So normally, the shock is very short-lived. And the longer term
implications, so they are more harmful to the UK economy and in the longer run, if it means a shift away off investment, away from the UK to
continental Europe, it could even be positive for the Euro zone but then when we talk about the longer term picture.
NEWTON: Yes, it is very difficult at this point. It's a difficult divorce and that's what Europe has said all along. One thing that has kind of been
missed with all the Brexit chaos has been also the chaos in Italy. How significant do you think this will be with now the EU saying, "Look, we're
going to punish you Italy over this budget. It's just not good enough."
BRZESKI: I think Italy will not be penalized. I mean, that's the whole thing. But it shows, again, that the Euro zone even ten years after the
start of the crisis is still struggling to find the right policy prescription. What this is, is the dilemma between should there be
spending? Should there be investment? Should there be fiscal stimulus to get the stagnating economy growing again? Or should there be austerity and
And we still haven't found a solution here. So in the short run, only a bit of volatility, no big escalation but in the longer run, if we ever
enter a next recession, then this clash of cultures, this clash of policy prescriptions will clearly emerge and then could lead to a more severe
NEWTON: Okay, and again, so much more to watch out for in the days to come in Europe. I wish you a good weekend. We're going to all need the rest.
Appreciate it. Thank you so much.
Now, Theresa May needs to manage risk. Ian Bremmer knows all about that, my conversation with the head of the Eurasia Group. That's next.
PAULA NEWTON, HOST, QUEST MEANS BUSINESS: Hello, I am Paula Newton, there's more QUEST MEANS BUSINESS in a moment when Malaysia's next Prime
Minister speaks exclusively to Cnn, Anwar Ibrahim tells Richard Quest he'll tackle the 1MDB scandal.
And Boeing is facing scrutiny over the safety of the 737 MAX, the newest version of the world's most popular passenger plane. The CEO of Gol tells
me what it means for his business. Before that, though, these are the headlines on Cnn.
President Trump says he has written answers himself to questions from the special counsel Robert Mueller. Speaking in the Oval Office, the president
told reporters he answered the questions, quote, "very easily". Mr. Trump said the White House has not submitted the answers yet.
U.S. prosecutors appear to have accidently revealed an indictment against WikiLeaks founder Julian Assange. It happened in a separate court filing
when a prosecutor included a mention of sealed charges against Assange. It's not clear what the charges are and prosecutors are refusing to confirm
A source tells Cnn that Israel will be setting a date for early elections on Sunday. Prime Minister Benjamin Netanyahu is struggling to keep his
coalition government together after his defense minister resigned on Wednesday.
Funeral prayers have been held at Istanbul's Faith Mosque for murdered Saudi journalist Jamal Khashoggi. The prayers were performed as part of
the funeral rights, although his body still hasn't been found. Meanwhile, his family will be receiving condolences of the journalist's home in
Jeddah, Saudi Arabia.
Cnn's Chief White House correspondent Jim Acosta has returned to his post after the White House said it would temporarily reinstate his press pass.
That's in response to the initial favorable ruling Cnn received in this network's lawsuit over White House press access.
Acosta's pass was revoked last week after a contentious back and forth with the president. All right, we were just talking about her weekend tonight,
British Prime Minister Theresa May is trying to rebuild that splintered cabinet. It's been a week of political fallout over her draft Brexit deal.
And remember, we're asking you which approach lawmakers should take, stay in the EU, accept Theresa May's deal or drop out with no deal. Cast your
vote at cnn.com-slash-join. Now, the president of the Eurasia Group has built his career measuring political risk.
So I talked to Ian Bremmer a short time ago, he's been looking at the big picture and told me why he thinks Mrs. May's plan is a lose-lose
(BEGIN VIDEO CLIP)
IAN BREMMER, PRESIDENT, EURASIA GROUP: In a world order, if you want to go more than 35,000 feet, let's go 60,000 feet. The biggest thing that's
happened in the last five years is China has asserted itself far more greatly on the global stage, not in alliance with the United States, not
politically reforming to become a democracy and a free market economy, but instead an authoritarian state capitalist country with its own political
architecture around it.
Now, in that environment, if the United States, the U.K. and the continent of Europe are not aligned, instead it's America first and unilateralism
from the United States. It's the U.K. saying, we don't want to be a part of the EU any more, but we don't really know how to get out of it.
And the Europeans pointing fingers at each other, saying who's in charge, not Merkel anymore, it's Macron versus the Italians and Eastern Europeans.
What do you think is going to happen globally? It's going to be the emergence of -- the re-emergence of a dominant west.
[15:35:00] It's going to be fragmentation and the Chinese has increasingly the ball game that a lot of people are orienting themselves towards.
NEWTON: And when you're orienting yourself that way though, and you've got this issue still of that hard border, you don't want it to become a hard
border. The issue is the U.K. will have a land border with Europe, they absolutely can't change that.
Do you think that has been really the issue here that has made it impossible for U.K. to get the Brexit deal it wants?
BREMMER: Part of it is the continued persistence of some membership in a common market as a transition. It is being susceptible to EU rules and
regulations and not having any ability to have a say in them while a transition period is going on.
It is indeed the question of a hard border with Northern Ireland, there's an issue of dominion over fisheries and regulations for the Scots.
There's actually a lot of problems here -- I will say that inside the United Kingdom, almost everyone is united with something that they dislike
about this deal, but they just like different things.
And because there's no urgency, it's not like they have to agree on a deal or tomorrow there's going to be an economic crisis. It's not like what the
Greeks were facing when it was in or out of the Eurozone or the whole place implodes. There's no reason not to play politics if you're in the U.K.
When you're playing politics, you're kicking the ball down the road and you're doing things for your own ambition, your own political party, your
own personality. That's exactly what got us the referendum to begin with Cameron and Osborne.
(END VIDEO CLIP)
NEWTON: Yes, it was an interesting point Ian made there, and the fact that there is no gun to anyone's head and that the politicians in the Tory Party
know about, which is why they have been pushing perhaps for that leadership change, at least some of them have.
Now earlier, we asked you what's the best outcome for Brexit Britain. It is overwhelming, most of you say Britain should stay in the EU, maybe
you've been listening to Ian, and clearly you didn't vote in the referendum two years ago and very few of you say, lawmakers should take Theresa May's
deal, perhaps those are the startling results that you see there.
A crash out would be better. This will be interesting as we continue to watch this deal, whether Theresa May survives in the week to come and
whether that deal survives. Now, we want to turn to what we started the week with, and that was Goldman Sachs being the biggest drag on the Dow,
dropping 7.5 percent on Monday.
Its biggest one day drop in seven years. The reason? Malaysia wants its money back. the corruption scandal Malaysia sovereign wealth fund 1MDB
continues. Billions of dollars have vanished while Goldman collected its $600 million in fees. The bank could come under pressure this Monday as
Richard Quest sat down with Malaysia's Prime Minister in waiting, Anwar Ibrahim in this exclusive interview. Anwar says Goldman Sachs now has
nowhere to hide.
(BEGIN VIDEO CLIP)
ANWAR IBRAHIM, PARTY LEADER OF THE PEOPLE'S JUSTICE PARTY: It's not just 600 they have to pay the compensation, the losses, they make sure the
country, the loss of years --
RICHARD QUEST, CNN: How much are you looking for?
IBRAHIM: That, I would leave it to the Ministry of Finance.
QUEST: You must have a number in mind, 1 billion, 3 billion, 5 billion.
IBRAHIM: Well, it should at least be double of this certainly.
QUEST: Ten billion.
IBRAHIM: No, I mean, the number of what we lost.
QUEST: Oh, so you're talking about over a billion.
IBRAHIM: Yes --
QUEST: And if they don't pay, what will you do?
IBRAHIM: Go to the courts in every country possible, where they were involved. You know, but here in Malaysia, in the United States, sure.
QUEST: So you're determined to make as much trouble for them as you can?
IBRAHIM: No, we want -- we want enough resources back to serve our people. I don't believe that the country must suffer or the people must suffer just
because of the greed of some of this company leaders.
(END VIDEO CLIP)
NEWTON: You know, it's an incredibly candid interview. On Monday, we will have more of it, it's an exclusive interview with Anwar Ibrahim on both the
express and here on QUEST MEANS BUSINESS. We're all looking forward to it.
Now, Boeing continues to face questions over the Lion Air crash. I spoke with the CEO of Brazil's largest airline Gol on the effects of Boeing's
troubles on the entire industry. More on that after the break.
[15:40:00] (COMMERCIAL BREAK)
NEWTON: Boeing is facing new problems after the family of one of the victims in the Lion Air crash filed a lawsuit on Thursday, alleging that
the 737 MAX 8 aircraft had an unsafe design, and pilots are also raising concerns. The Airline Pilots Association is the third such union to say
that Boeing failed to provide sufficient information on how to operate the aircraft's new safety system.
A hundred and eighty nine people died when the plane crashed off -- after taking off from Jakarta, Indonesia. Now, for Gol, Brazil's largest
airline, Boeing 737 MAX plane is key to its future growth. The airline recently launched direct flights from Brazil to the United States. I spoke
to CEO Paulo Kakinoff and he told me that Gol is a 100 percent confident in Boeing safety.
(BEGIN VIDEO CLIP)
PAULO KAKINOFF, CHIEF EXECUTIVE OFFICER, GOL AIRLINES: We are one of the largest 737 operators in the world, and we believe a 100 percent, this is
one of the safest airplanes in the world. Boeing has kept us posted since the accident occurred and what they have done so far is to emphasize how
important it is that the training that our crews have been submitted to for many years.
So we are a 100 percent confident that this accident is going to be clarified and that Boeing will keep its record of being one of the most
safest aircraft producers in the world.
NEWTON: It is and there are airplanes all of us are on all the time. Have you spoken to your pilots to say what are you comfortable with and have you
looked at the manual and know exactly how -- perhaps that 737 MAX is different than the older 737 models.
KAKINOFF: Oh, we have actually -- all the differences were highlighted and our crew members, they are a 100 percent informed about this, and the
procedures that are necessary or that are needed whenever you see anything different happening with this specific system being the question, pretty
much the same being applied to the 737 MG and the MAX.
So we have all -- also keep them posted on everything being informed by Boeing and Boeing has been pretty clear on telling us how should be the
training aspects to be emphasized it since the accident occurred.
NEWTON: Because it is a little bit more involving the training, not necessarily perhaps if there is a fault. Let's say, from what I
understand. Do you want the FAA to become a little bit more involved at this point?
KAKINOFF: We are pretty much cautious and careful about any kind of assumption made before the investigations coming to an end. So we know our
peer, Lion Air is probably going through a very difficult time because they are looking after the explanation, what has happened and therefore we
wouldn't like to raise more speculations by saying what should be done or not.
[15:45:00] What we believe is our role here in this process is, first of all, to support our industry, our company and Boeing mainly to find as soon
as possible the explanation for what has happened.
But I believe that in plural, the airline industry is now even more careful about raising reasons or explanations before the end of an investigation
because that would only create more and more and more doubts.
NEWTON: Got you, got you, fair enough. The 737 MAX is a huge part of the new routes that you're introducing. I mean, in terms of how this fits into
the history of your airline, where do you see your airline going now that you have those all important slots in the United States.
KAKINOFF: We are operating today 120 aircrafts, 900 flights a day. So, this is 18-year-old company and we have expanded our operation since the
very first day in a peripheral way. I mean, whenever I get any access to a more modern aircraft which is allowing us to reach longer destinations, we
have been able to transport our airline concept to new countries.
United States is always -- sorry, our most recent achievement because that's a very desired destination from the Brazilian touristic point of
view, and it stands for 40 percent of the traffic generation by the airline segment in Brazil to the United States.
(END VIDEO CLIP)
NEWTON: OK, a little bit of fun here, it is the weekend after all. If Cher is the goddess of pop and Patty Smith is the godmother of punk, stay
with me, well, we're crowning Celine Dion the queen of Las Vegas after more than a 1,000 shows, hear from Queen Celine as she prepares to bring down
the curtain on her latest Sin City residency.
NEWTON: OK, Sin City, Las Vegas, we're going to say that again, glitz, glamour and let's not forget, yes, gold, as the profit models for
entertainers have changed in this streaming era. You know, they found a new way to rake in huge amounts of money and I mean, huge.
[15:50:00] They're doing these residencies in Sin City. Now, Britney Spears generated 137 million during a four-year Vegas stint. The red
piano residency from Elton John netted close to $200 million, but the queen of the residency is without question, Queen Celine, Celine Dion.
She has announced her current run, though, will end early next year. Get those tickets. So far, get this, it has brought in $233 million, a second
only to her other run which started in 2003. Now combined, Celine Dion more -- has done more than a 1,000 concerts on the Strip that have grossed
nearly three quarters of a billion dollars. That's incredible, three- quarters of a billion dollars.
Chloe Melas is Cnn's entertainment reporter, she has been speaking -- I'll say it again Queen Celine, because doesn't it sound so good? Listen, this
is a fabulous lady, I'm sure you had great time. But we're also talking about how she really rakes it in in these shows for these promoters.
CHLOE MELAS, CNN ENTERTAINMENT REPORTER: She makes on average about $500,000 every show she puts on.
NEWTON: That's true.
MELAS: I went and actually saw one of her shows in Las Vegas last week at the coliseum, at Caesar's Palace, it's a packed house. Caesar's Palace
actually built her that coliseum in 2003. You know, Liberace and Frank Sinatra are the ones that paved the way for residencies, Elvis.
And then, you know, for a period of time, they kind of faded and then Celine Dion was really the one who brought it back with her "New Day",
residency and now it's called Celine. You know, she's ending in June and many fans are sad and they want to know what's next.
She did tell me that she is working on her first English album since 2013, fans have been ravenous for new music. But she has a lot of other things
in the works. I mean, obviously, this residency has been a huge money- maker for her. She has now decided to get into children's clothing.
She partnered with an Israeli company called Nununu and she's doing gender neutral clothing. But we talked about many things last week when I sat
down with her and one of them was how she's doing since the death of her husband Rene who died two and a half years ago after battling throat cancer
and she's doing much better. You guys can take a listen.
(BEGIN VIDEO CLIP)
MELAS: You have this incredible residency here in Las Vegas at Caesar's Palace. I was floored by the energy and song after song and how perfect
How do you juggle being a mother to three children and performing sometimes four times a week.
CELINE DION, MUSICIAN: The best way I can. Most of the people work five days a week, 9:00 to 5:00. I feel myself very fortunate that, first of
all, I do what I love, sometimes it makes me happy, sometimes it makes me sad because I do sing a lot of love songs and love hurts.
MELAS: Losing your husband two and a half years ago, I can imagine it's been incredibly difficult.
DION: Before he passed away, I died first. It was hard to see him die a little bit every day and sometimes like I ask myself questions, well, do
you think they would have been easier, an accident and then no good-byes, it's done and it's over with? You don't know that.
I hope it doesn't sound strange to say, my husband still lives with me. I see him every day through the eyes of my children. So he's alive, he
MELAS: When you think about your next chapter, could you ever open yourself up to love again?
DION: I am in love. I am very much in love. I had my husband.
(END VIDEO CLIP)
NEWTON: She's incredible. She really is.
MELAS: Well, I'm telling you, she performs four nights a week. She told me that she works out after the show --
NEWTON: I don't work out after this show, OK, I just want everyone to know.
MELAS: Neither do I. I was tired just watching her perform. But you know, she -- it's unclear what's going to happen after her Las Vegas
residency. I wouldn't be surprised if maybe she does a third residency. I think that she has a lot of offers on the table right now and obviously
she's busy working on the English album that I told you about.
NEWTON: But you know, as you were telling us in the beginning though, these residencies have become popular with some of these acts that maybe
can't pack stadiums day after day after day. But the point is, they like - - they're in there, they get to make a certain amount of money, they see their families, their families stay --
MELAS: Yes --
NEWTON: In one place with them --
[15:55:00] MELAS: Stability for Britney Spears, Mariah Carey, Elton John. So many of these men and women have followed in her foot steps and had very
successful Las Vegas residencies. And her team told me that she's planning to stay in Las Vegas after this residency ends because she lives outside of
the Strip and she's actually set up a really nice life for her family.
She has a 17-year-old son, two twin boys and just speaking of this even stability though, she has an unconventional schedule. When she gets home
around 1:00 or 2:00 in the morning, she actually told me that her twin boys who are eight years old, they stay up and wait for her.
That they actually put mommy into bed, and that they all sleep in the same bed together. So, you know, it's all very interesting, you know, when
you're a celebrity, you have many things juggling in the air especially Celine.
NEWTON: But it is interesting the way they have been able to also rejuvenate Vegas right with these residencies. And I know that it's given
it another facet of revenue.
MELAS: People from all over the world, all ages were in Celine's audience last week when I was there, and I think that also the draw is that she is a
performer. She can sing well, she's dancing all over the stage and she sounds just like she did when I was growing up with those CDs that I would
But I'm telling you, they generate so much money and to think that she's making $500,000 a night from this four-day a week residency. I don't see
why she'd want to stop.
NEWTON: Yes, and it's bankable, that is bankable, you can put in there. Chloe, thanks so much, have a great weekend.
MELAS: Thanks, you too.
NEWTON: Thanks for bringing us something fun at the end of the week around here.
MELAS: That's great, thanks.
NEWTON: Trading is coming to a close here in New York, we will have the closing bell as you see there. They are hanging on to those gains, we only
have got one break to go, folks, we should make it through.
NEWTON: All right, we're just about at the closing bell. It has been an unsettling week for markets, and as you see there, thankfully the Dow is up
better than a 100 points. There was a big spike in the middle of the day after President Trump said China is eager in fact for a trade deal with the
Tech shares though are the big losers. The Nvidia is down nearly 19 percent and the falling bitcoin prices mean lower demand from the Nvidia's
chips and of course last revenue for the company. And that is QUEST MEANS BUSINESS, I am Paula Newton in New York, I'll see you right here next week.
"THE LEAD" is next with Jake Tapper.