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Donald Trump: Expect an Announcement Soon that a 100 Percent of ISIS' Caliphate has Been Defeated in Syria and Iraq; Search Underway After Deadly Istanbul Building Collapse; Last Year Recorded as One of the Warmest Years on Record According to Reports; Investors React to Earnings from GM, Disney and Snap; SnapChat Stocks Soars; Spotify Shares Fall After Earnings; Apple's Retail Chief to Leave Company in April; Apple Human Resources VP to Replace Retail Chief; Maduro Blocks Bridge to Prevent Aid to Venezuelans; Donald Tusk Slams Brexit Supporters. Aired 3-4p ET

Aired February 6, 2019 - 15:00   ET


RICHARD QUEST, HOST, QUEST MEANS BUSINESS: An hour left to trade on Wall Street, and as we enter our final hour, you'll see it could go either way.

We are down just 22 points, but the market has actually been up on several occasions. Betwixt and between is pretty much how I describe it.

And you see that looking at the -- this is Dow, half and half -- half up, half hour down. You don't see that very often amongst the Dow 30 because

this is what's been moving the markets.

Brussels is blocking a big industrial merger, France and Germany are furious. Sparks fly for the world's biggest automakers. GM is out in

front. It's a bumper day for auto earnings. And Snap back, shares are up more than 20%. The issue is, can they stay there?

We're live in the world's financial capital, New York City, on Wednesday, the sixth of February. I'm Richard Quest. I mean business.

Good evening. We have a busy hour ahead. We are expecting Donald Trump to speak and give a speech on ISIS from the State Department for the Coalition

of Ministers against ISIS. When that happens during the course of this hour, we will bring it to you. Also this hour and the past hour, Donald

Trump has just revealed his pick to run the World Bank, in a move that sparked controversy.

I'll be speaking exclusively to the bank's former Chief Economist, Joseph Stiglitzi n a minute. Now, as I said, the President is heading to the

State Department where he is due to address a Summit on defeating ISIS, that speech once it begins.

Let's begin with Donald Trump's latest nomination. The President has picked a World Bank critique as the U.S. nominee to be its new head. David

Malpass comes from the U.S. Treasury and was part of the Trump administration's delegation in Beijing last month for trade talks.

He takes over or would if he is appointed from Jim Yung Kim, who announced his sudden resignation last month. The President has historically picked

the head of the World Bank, it provides low cost loans and projects around the world -- infrastructure stuff.

A few moments ago, Malpass said he was honored to be chosen.


DAVD MALPASS, U.S. NOMINEE FOR WORLD BANK PRESIDENT: Mr. President, I'm very optimistic that we can achieve breakthroughs to create growth abroad

that will help us combat extreme poverty and increase economic opportunities in the developing world. Thank you again, Mr. president, for

this great honor.


QUEST: The only problem is David Malpass is somewhat controversial. After all, he has previously said that global organizations like the World Bank

have grown larger and more intrusive.

Speaking a year ago at the Council on Foreign Relations, he was appointed critic at the so-called multi-lateralist ideology.


MALPASS: I want to make a clear distinction between isolation, which we oppose, and our view that multilateralism has gone substantially too far,

to the point that it is hurting U.S. and global growth.

The administration wants economic growth not only for the U.S., but for the whole world. It's not a zero sum game where our achievements must come at

another country's expense.


QUEST: Now, Malpass is also facing criticism for his previous job at Bear Stearns. The bank went under while he was chief economist. Before the

financial crisis, David Malpass was one of the many economists who missed the housing bubble.


MALPASS: I'm not in the camp that is worried about the consumer running out of money or housing crashing. I think we've got some weakness in

housing right now, but that may be good for the rest of the economy.


QUEST: Now, of course, he is not alone in that regard. I'm joined on the line now by Joseph Stiglitz, winner of the Nobel Prize for Economics in

2001, and perhaps for the purposes of our discussion, more important, a former chief economist at the World Bank. Good to speak to you, Mr.


David Malpass as a choice for the World Bank. Your thoughts?

JOSEPH STIGLITZ, FORMER CHIEF ECONOMIST AT THE WORLD BANK: Well, I think it's very peculiar because I really do believe the World Bank is a very

important institution and having somebody who doesn't believe in multilateralism, who says multilateralism has gone too far, who says that

multilateralism has impaired growth is very disturbing.


STIGLITZ: In fact, we know that the World Bank played an absolutely essential role in sustaining global growth in the crisis of 2008-20'09. It

played a very important role, so I just don't think he knows what he's talking about.

QUEST: Would you think he is qualified. I mean, as an economist from Bear Stearns and he has been Undersecretary for International Affairs, so there

is a strong argument that says he knows the lay of the land and coming, let's face, Jim Yong Kim was not even an economist and had no knowledge of

the sort of issues that the bank deals with except health.

STIGLITZ: Well, knowing the lay of the land is important, but being consistently wrong is not a good recommendation. He got the real estate

crisis wrong. He was chief economist, as you pointed out at Bear Stearns when it went under. I'm not sure that having those kinds of experiences is

a strong recommendation.

One of the things that really disturbs me is that one of the central functions of the World Bank today is responding to the challenge of global

warming and the Trump administration has been a climate denier in spite of all the evidence coming in and how important climate change is and how

devastating it's going to be for developing countries.

QUEST: Joe Stiglitz, the World Bank is in something of a mess at the moment. We can argue about why the current President, or the former

President, is leaving in such a hurry and under a cloud, but the remnants behind demoralized staff wondering what the goal is, what their purpose is,

admittedly a greater capital base that he has managed to get through. But it does beg the question, what next?

STIGLITZ: Well, exactly. This is not a time to appoint somebody who is going to demoralize the bank even further. As I said, I think the bank has

played a very important role, and it needs somebody who understands the bank, understand multilateralism, understands the importance of a rules

based multilateral system, including the importance of a rules based trading system, understands the importance of globalization.

These are critical issues facing the global economy -- poverty, inequality -- and coming with his background and from the Trump administration is not

exactly going to increase morale and enable the bank to fulfill its mission in the way it should.

QUEST: Good to have you, Joseph Stiglitz joining me there. Now, Donald Trump is speaking, as we said, at the State Department. Let's listen in.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: ... comprise 74 countries and five international institutions, all united in the fight against this

vile terrorist organization, and vile they are.

I want to thank Acting Defense Secretary Patrick Shanahan. Patrick, stand up. You've been doing a fantastic job. We appreciate it.


Thank you. Ambassador James Jeffrey, thank you. Thank you. And all of our Coalition members here today for their enduring commitment to defeating

ISIS in the Middle East and around the world.

In January 2017, only two years ago, ISIS had a vast amount of territory in Syria and Iraq. When I became President, I said, "I want to see what they

have." And I looked, and it was a mess. It was a lot. When I took office, one of my very first acts was to go to the Pentagon and ask them to

produce and show me a plan to defeat ISIS.

Under the new approach we developed, we empowered our commanders in the field, enabled our partners on the ground, and directly confronted ISIS's

wicked ideology. And we're doing that today, except in even greater numbers.

As a result, as I noted in my State of the Union Address yesterday, the United States military, our Coalition partners, and the Syrian Democratic

Forces have liberated virtually all of the territory previously held by ISIS in Syria and Iraq.


TRUMP: It should be formally announced sometime probably next week that we will have a hundred percent of the Caliphate. But I want to wait for the

official word. I don't want to say it too early.

Over the past two years, we have retaken more than 20,000 square miles of land. We have secured one battlefield. And we've had victory after

victory after victory, and retaken both Mosul and Raqqa.

We have eliminated more than 60 mile high-value ISIS leaders. So we have a -- if you look at the ISIS leaders, of the 60 top, we've eliminated almost

every one of them. Now, they've reformed; we know that. But they're having a hard time re-forming, and I wouldn't say it's a great job to have

because of us. It's not exactly -- hopefully, it will not be a sought- after occupation. More than a hundred other top ISIS officials have been eliminated, and tens of thousands of ISIS fighters are gone. They're gone.

Together, we have freed more than five million civilians from the grip of these bloodthirsty killers. And you know the killers they are. You see

it. And we used to see it to an extent we couldn't believe, where our people and our friends and our allies -- in many cases, people whose

parents I've gotten to know -- had to wear the orange uniform prior to you know what. We don't want to see those scenes anymore.

Thanks to the Global Coalition, including all of you here today, and to our other partners, the ISIS Caliphate has been decimated. Nobody thought it

was possible to do it this quickly.

Three weeks ago, I was in Iraq and I was talking to some of our great generals, and I gave them the absolute go-ahead. I said, "Go at it. How

long will it take once you get started?" He said, "Sir, one week." I said, "Where did that come from - one week?" And he meant it. And it's about a

week since they really got going. And they'll be informing us very soon, officially. But it's 100 percent.

ISIS can no longer claim widespread ownership over local governments in Syria and Iraq. Now, you're always going to have people; they'll be

around. They're sick. They're demented. But you're going to have them no matter how well we do militarily. You can't do better than we've done,

militarily. But you will have people that will be around. And we'll search them out, and you'll search them out, and we'll find them. And

hopefully, they won't be around very long.

They can no longer extract natural resources because they no longer control the land or the area. They can no longer tax the citizens in that area

because they no longer have that area, or steal ancient artifacts or destroy ancient artifacts, as they've been doing. They've really been set


We're working very hard on the internet. For a period of time, they used the internet better than we did. They used the internet brilliantly, but

now it's not so brilliant. And now the people on the internet that used to look up to them and say how wonderful and brilliant they are, are not

thinking of them as being so brilliant. Because they've been decimated. They can no longer control schools to impose their vicious ideology on

young children.

Critically, ISIS also now lacks a significant territorial base from which to launch terrorist attacks against other countries, recruit foreign

fighters, and spread havoc across the region. Their land is gone. It's a big factor. Their land is gone.

This afternoon, I want to applaud the outstanding men and women of the United States military -- incredible people -- for their remarkable skill

and precision throughout this entire campaign.


TRUMP: Now, as countries in the region and across our Coalition step up their commitments, and we continue to destroy the remnants -- that's all

they have, remnants -- but remnants can be very dangerous; you have to remember that. A remnant can be very dangerous. But we have remnants of

ISIS. We look forward to giving our brave warriors in Syria a warm welcome back home.

Rest assured, we will do what it takes to defeat every ounce and every last person within the ISIS madness, and defend our people from radical Islamic


I commend the 30 other nations who are already contributing troops to this vital effort. And it's a different effort than we had initially, but

totally vital.

In recent months, Germany, the United Arab Emirates, and Saudi Arabia have all made financial commitments.

The struggle against terrorism is a shared fight. We do it together. If we don't do it together, it can never be the same. Everyone must do their

part and contribute their fair share. We must also recognize that immigration security is national security, and that foreign fighters must

not gain access into our nations.

We've been extremely tough on people that we think can be in any way working with, or even be a part of, radical Islamic terror. I've been

very, very tough on that, and I hope every other nation is, too.

I just want to thank everybody in this room. This is a special group of brilliant people, and it's been an honor to work with you. And we will

continue to work with you, because unfortunately this is not going to be something that -- as brilliant as our military is, knocking out the big,

big sections, they'll have tiny sections. It can be so dangerous.

But I want to just thank everybody. Having the Coalition, having the partnership -- because it's really a partnership -- with you has been my

honor. Our military has been incredible. And your militaries have been incredible. So it's an honor to work with you.

We will be working with you for many years to come. I say that unfortunately, but that's the way it goes. We will work together for many

years to come. It'll get smaller, smaller, and smaller. And someday, maybe, we won't have to even think about this problem that is so prevalent


Thank you all very much. It's a great honor to be here. Thank you. Thank you very much. Thank you.


QUEST: The President addressing the various Ministers from the Coalition to defeat ISIS speaking at the U.S. State Department. It was relatively

short and to the point. I'm not sure that it covered new ground or told us much that we didn't know already if the focus was there in a post-military

environment, in the sense of the military could not solve all the problems.

But our expert here is Michelle Kosinski who is at the State Department and she can tell me what I missed.

MICHELLE KOSINKSI, SENIOR DIPLOMATIC CORRESPONDENT, CNN: Hey, Richard, it doesn't like you missed a whole lot. I mean, this was a lot of words and

not a lot of information. I think if there's one nugget of news to take out of it, the President said he expected an announcement next week that

the Coalition has taken back 100 percent of ISIS's original territory and has completely defeated the Caliphate.

But even that is not unexpected. I mean, that is the same timeframe that we have been expecting for months now. That came even from the President's

own envoy to the Coalition to defeat ISIS, Brett McGurk, who you'll remember was one of the people including the Secretary of Defense who quit

after the President suddenly announced the withdrawal of U.S. troops from Syria.

So here was a little of the speech the President gave before all of these countries, nearly 80 different entities that are part of the Coalition

against ISIS. He didn't talk really about the U.S. withdrawal. He wanted to focus on the defeat of ISIS. I mean, playing up what he calls the

decimation of ISIS, saying nobody could have done it better than we did militarily, nobody expected it to be done this quickly, which is not

entirely true.


KOSINSKI: But he wanted to play up all of that, hit upon the theme of fighting radical Islamic terrorism and that tough stance that he likes to

highlight in situations like this, Richard.

QUEST: Michelle, we'll leave it there. Michelle Kosinski, thank you. Now, this is "Quest Means Business." We'll look at the markets in just a

moment after a short break.


QUEST: Forget the idea that you cannot stop a moving train. Well, it's a poor analogy, but I mean, the trains are moving. In this case, it's Alstom

and Siemens moving towards a merger. And now the European Competition Commissioner has managed to stop the two.

Siemens and Alstom are preparing to come together, the French and German governments supported the deal, but then Brussels blocked it on competition

grounds, saying it could have raised prices for signaling ultra-fast trains. Now if we take the two companies, Alstom and Siemens say, "Look at

the rest of the system." Concern about Chinese competition that the E.U. is concerned about, that is not going to happen anytime soon.

So what are these two going to do? Well, they are going to continue on the same track. Their own separate ways. Bruno Le Maire of the French Finance

Ministry says that they are going to investigate the whole issue and they may challenge the competition rule.

Meanwhile, Margrethe Vestager says that the change in the rules is not needed.


MARGRETHE VESTAGER, EUROPEAN COMMISSIONER FOR COMPETITION: To be clear, it's fine to be big. That's not the issue here. But we found that

competition from other suppliers would have been insufficient to replace the considerable loss of competition due to the merger.


QUEST: This is an interesting one, CNN's Anna Stewart in London. Two big companies like Alstom and Siemens, you would have thought they would got it

right in advance. They have got huge amounts of lobbying in Brussels. They would have known that this was going to be difficult.

ANNA STEWART, REPORTER, CNN: Huge amount of compromises as well, Richard. Both of them looked at certain divestments. They looked at licensing some

technology to try and open competition, but as you heard, it was not enough for the E.U.

And the E.U. is coming under some criticism now from Siemens, from Alstom and from the French and German governments because they're saying, the E.U.

is far too focused on competition within a block.


STEWART: And it is not looking at the businesses and the jobs that could be created if they compete more on a global stage.

QUEST: Isn't that their job? I mean, I am sure that the French politicians have been claiming otherwise, but isn't it the job of the

competition? What was so wrong about this particular deal?

STEWART: Well, this would have created an absolute giant in Europe. You know, Alstom and Siemens together would have combined lever of about some

15 billion euros or $18 billion. It would have been a monster. It would have made it very hard for smaller businesses to compete, particularly in

signaling, which is obviously so important for passenger safety.

So there were some genuine concerns here. The question is how do you balance that with the needs of business itself which helps jobs, which

helps the economy, and ultimately they need to trade outside of Europe as well as within?

QUEST: So what happens next for these two companies?

STEWART: Well, this is where it gets interesting. As we discussed, the political fallout has been huge. In terms of this merger, it appears to be

dead in the water. It's highly unlikely to go to appeal.

However, there may be calls for some sorts of reforms of the European Competition Commission itself. We heard that from the Finance Minister and

listen to what the French Prime Minister had to say earlier.


EDOUARD PHILLIPE, FRENCH PRIME MINISTER (Through a translator): The decision of the European Commission is a bad decision. It's a bad blow to

European industry and it seems to me to have been made on bad grounds. I can't be any clearer.


STEWART: And then the CEO of Siemens, Richard, also went one step further, I think, really a hard warning here saying the upcoming European elections

and subsequent new leadership will provide a unique opportunity to shape a Europe for the future. So a threat there as to what it will look like in a

few months to come.

QUEST: Anna Stewart. Anna, thank you. Germany is looking to forge ahead as Europe's industrial power house in the wake of Brexit. The slogan is

"Made in Germany," and it has been a cornerstone of the country's manufacturing center for decades.

Surveys show it holds the highest reputation amongst international consumers. Now, it's got a challenge from China. Berlin isn't taking it

down. The politicians there are drawing up new measures to protect German industry from foreign rivals. That's where the Chinese telecom giant,

Huawei comes in, hoping to lead the way in new 5G.

But Berlin is skeptical about its true intentions and they report a secret closed-door sessions today where German lawmakers discussing a potential

ban for Huawei and as it guarantees they would lead to Beijing.

The heightened tensions are putting off the automaker giant Daimler and Geely. The carmakers adjusting their plans to expand their joint venture

into China. To put it together, Andreas Kluth is the Editor-in-Chief at Handelsblatt Global and he joins me now via Skype from Berlin.

Let's look at the Huawei first of all. Bit by bit, Huawei is being shut out of the German market.

ANDREAS KLUTH, EDITOR-IN-CHIEF, HANDELSBLATT GLOBAL: That is true. First of all, it's already been shut out of several other markets, as you know.

The U.S. is the most strict, New Zealand, Australia, Norway, Poland, the Czechs, everyone especially the ones being pressured by America to shut

them out have shut them out.

Germany has not shut them out yet, and they are just talking about it. And I think, in a very balanced way, an interesting thing that happened

yesterday was that Vodafone, which is actually it is British, but it is one of the three largest German players as well, they voluntarily and

preemptively said we're going to kick them out of our networks and replace them with Nokia equipment.

And today, as you said, there was - it was not a secret meeting because we're talking about it, but there was a meeting about what else they might

want to do to prevent Huawei from supplying equipment for the 5G rollout.

QUEST: But what does the German - where does the German government stand in all of this? Particularly in the sense of a waning administration of

Angela Merkel, but where they've said that they will be prepared to step in and in some cases, take states and companies in certain cases and protect

what they see as German industry.

KLUTH: The German government, first of all, they come from a tradition that is the opposite of the French tradition and the Chinese tradition

which is you usually leave industry alone. Going back to (inaudible) that was the philosophy, and yesterday, the Economics Minister, a big guy named

Pitalt Mayez (ph) said, "Let's not do that anymore because the threat from China and others is so big that we should defensively take some through an

investment fund -- takes some stakes in German companies to prevent them from buying that up." You mentioned Daimler and Geely and there were some

other high profile -- 31 billion worth of Chinese purchases of German corporate stakes last year and double as much the year before.

So they are getting defensive about that and looking at other legal ways of perhaps guarding against that.

RICHARD QUEST, HOST, QUEST MEANS BUSINESS: Do you find that extraordinary? Do business leaders find it extraordinary? Think about it, just think about

it, that the German government or any EU government is actually talking about buying stakes in domestic companies to fend off against the Chinese.

KLUTH: Well, on one hand, you don't want to be naive because the Chinese are doing this. And there are -- you know, the (INAUDIBLE) economy at

home, and they're using their foreign investment as basically an extension of nationalism. On the other hand, it goes against German and mainstream -


QUEST: Yes --

KLUTH: Liberal economy philosophy. So yes, I do find it extraordinary and I've been writing against it.

QUEST: And we look forward to you company with us to talk about it more! Because this -- the only thing I know about this is, it's going to run and

run, there's more room on this one in the future. Good to see you, sir, joining us tonight. And this is QUEST MEANS BUSINESS, we'll be back in a



QUEST: Hello, I'm Richard Quest, there's more QUEST MEANS BUSINESS in just a moment. As we continue, this is Cnn, and on this network, facts always

come first. The U.S. president says we can expect an announcement soon, probably next week, that a 100 percent of ISIS' caliphate has been defeated

in Syria and Iraq.

The president made those remarks moments ago at the Global Coalition to Defeat ISIS at the State Department in Washington. Rescuers are waiting to

find survivors after a seven-storey building collapsed in Istanbul. It looks like to be almost completely destroyed. We're hearing that two

people have been killed and six people have been rescued so far.

Last year was the fourth hottest-ever recorded according to NASA and the National Oceanic and Atmospheric Administration in the U.S. Many locations

around the planet endured extreme weather in 2018, U.S. was particularly hard hit with flooding and hurricanes.

[15:35:00] Scientists say temperatures continue to warm fastest in the polar region. Twenty five minutes to go before the close of business in

the U.S. At least in the markets and the Dow is off 27 points. Its holding its own there, it really is. And when you look at the way the day

has gone so far and the graph so far, the S&P is down and looks set to win the five-day winning streak.

Investors are focusing on the earnings, Disney shares are down even though it had reasonable numbers last night, and GM is up. Shares of Snap, yes,

it goes up 22.8 percent. Zoom in here, zoom in, let's enjoy that one moment while it last. It was nearly 30 percent at one point.

Put this in perspective, apparently it did in that quarters, users in last quarter, but it didn't lose them either, and it managed to squeeze out more

money from its users. The shares are down however by two-thirds and since its IPO, and of course users have been leaving in some numbers.

Apparently, the app redesigned. The man who is an expert on this, Shelly Palmer joins me. How, good to see you, sir.


QUEST: As always, please. It's nice to see Snap getting a bit of a rally and a run, 23 percent is good.

PALMER: Wonderful, it's a great day. You know, the market has rewarded them for a couple of quarters of good profit, and the advertising dollars

are up, the users are roughly flat, so you know, it's a good day. Will it continue? That's the big question.

QUEST: You don't buy it, do you?


QUEST: I say buy -- I mean, the story, you don't buy it.

PALMER: It's because SnapChat is a business model, not a business from my perspective. You look at what Facebook has done, Facebook stories inside

of 14 months had pretty much the same number of users as SnapChat did. And now, they're in the hundreds of millions of stories a day, they're

rolling out stories, a femerell(ph) across all their platforms. So what is the unique differentiating factor for SnapChat?

QUEST: It's not Facebook.

PALMER: OK, then, but does it ever get bigger than that? That's the question, I mean, how much room do they have to grow?


QUEST: If that's the case, then, you know, nobody can really take on Instagram for those sorts of pictures and stories. Nobody would be able to

really take on -- except in China with WeChat, but nobody would be able to take on WhatsApp.

PALMER: In practice, these are monolithically large organizations, and they are really hard to compete with. And so, you know, if you're a

shareholding and you're happy with the profit that SnapChat is turning, and you look at the future, and you say this is how big we can get, but the

question is are they constrained in size by the competition?

QUEST: Before we move on, just to clarify, I know you've been wanting to know, my Snap shares which I bought just after the IPO are now 27 percent

and rising, are now down only 69 percent. At this rate, the coffees will be on me. I want to talk -- OK, so we've looked at Snap, Spotify --

PALMER: Yes --

QUEST: Another one, trying tonight --

PALMER: Yes --

QUEST: But Spotify has got some weight behind it. The shares were down sharply on the back of base part of 500 million, turning it into an audio

broadcast company as well.

PALMER: Yes, look, I think that Spotify is a kind of a special case. They have a really good business plan, they have a pretty decent business model,

they've dealt with the copyright tribunal. They have a clear understanding of their future. I'm more bullish on Spotify.

QUEST: Just remind me, that number you gave me about -- we were just talking -- before we came on the air, about the amount of advertising,

digital advertising that goes to Facebook and Google.

PALMER: Oh, it's no -- that's no secret. If you --

QUEST: No, it's not, but I was not aware --

PALMER: So if you look at pure digital dollars, dollars are available for digital advertising, about 80 percent, 80, goes to Google and Facebook and

everybody else fights for the other 20 percent. That's pretty much the way it is. And I don't think you'll find an immediate buyer or a brand manager

that will tell you anything different. That's pretty much the number.

Yes, these guys -- and by the way, they are not 80 percent of the viewership on the internet, they are just 80 percent of the money.

QUEST: So, now, good, good to see you, sir, thank you as always. Let's stay with that thought and what's happening. Apple's head of retail was

once, you know what? To succeed Jim Cook as chief executive. Now after five years in the world's most valuable company, Angela Ahrendts is heading

for the exit. Her pay package at Apple is more than Cooks, a lot more.

Well, she did come from Burberry where she was extremely successful in turning it around. Samuel Burke is with me from London. Is she being

pushed out?

SAMUEL BURKE, CNN BUSINESS & TECHNOLOGY CORRESPONDENT: The conventional wisdom here is that clearly something has gone wrong.

[15:40:00] Everything has gone right up before this, but looking to the future, they don't think that it's a match. But we don't know where she's

headed, we don't know about some type of fight, and there's nothing specific to really peg on her, Richard.

She's had incredible success. If you look at what she did offline and online, she created the iPhone Upgrade Program. Let me just put one number

on the screen for you, Richard. If you look at sales per square foot, she works in retail, so of course, that's where you're going to measure her, up

20 percent under her to $5,637,000 --


BURKE: Per square foot, compare that to just 680 average in Manhattan.

QUEST: Some people say the way she organized the stores, she got -- you know, you obviously no longer have the lines because she introduced the

walking-around helpers, which I find very helpful actually. It's nice to go into a store and actually have somebody there in front of you to help

you, but it meant for long waits, it meant -- you know, the lines were -- I don't know.

BURKE: I don't like the way that's been set up personally, but that's just my personal opinion. But I think the bigger business story in terms of the

actual retail shops is what she did do in China -- or rather, what she didn't do in China. Yes, most of the stories were set up under her watch,

but she focused on the big cities.

And if you look where the Chinese companies that have grown a lot, like OPPO for example, they focus on second-tier cities. I think this really

has all to do with China, Richard.

QUEST: So the woman who's taken over, been with the company 30 years, and is in the head of HR if I'm not mistaken.

BURKE: Or --

QUEST: Which begged -- which begs the question, that's a strange business.

BURKE: Very surprising. I don't think anybody outside the Apple bubble saw this coming, including very plugged-in analysts. This woman is the

head of HR currently, she's been with the company for dozens of years, though.

She is one of these long-time insiders that you sometimes see pop up at a company in a high-profile role like this. But it's interesting because she

will oversee online retail, retail in physical stores, brick and mortar stores and HR. An incredible portfolio and a big surprise for a lot of


I would love to know where Angela Ahrendts is going, maybe she'll end up back at Burberry, that stocks not up at all --

QUEST: Yes --

BURKE: And there's speculation of that. Or maybe Calvin Klein, she has some ties there.

QUEST: Re-heated mails and everyone's got -- my guess is it will be back into fashion though. I am laying money -- it's into fashion somewhere.

All right --

BURKE: Well, Rich, I just have to congratulate --

QUEST: Go on --

BURKE: You on your -- on your Snap stocks, Richard, I have been giving you a hard time about -- for years, and this will probably be the one night

that you can gloat a little bit.

QUEST: You're still here, thank you, good-bye. When we return, we will be going to Colombia, humanitarian crisis is unfolding. Now Venezuela's

government has blocked aid from reaching its own starving citizens. But of course, there is a so-called refugee issue -- not so-called, it is a

refugee issue of people coming over the border.

Isa Soares is in Colombia. We'll be with this after the break.


QUEST: In Venezuela, the Maduro government has blocked a bridge that connects the country to Colombia as humanitarian aid was just about to

arrive. We used a drone to get these images of an orange oil tanker and two large blue containers positioned across the three-lane bridge.

It blocks the vital aid from entering with the Maduro regime saying, we are not beggars. Isa Soares is in the border town of Cucuta in Colombia there.

They're not beggars but there is a serious -- I want to say refugee crisis, but it's not so much refugees, it's more like transient-derpy(ph) passes,

coming across, trying to get stuff in -- well, you tell me.

ISA SOARES, CNN CORRESPONDENT: Very much, you're spot on, Richard. He said it, no, "we're not a country of beggars", but you ask anyone here,

this is a humanitarian crisis, so many people telling me, we are hungry, we are starving.

Now, this is a Simon Bolivar Bridge, it's the main pedestrian bridge that connects Colombia, if you can see over my shoulder behind me, I mean, this

is Colombia, welcome to Colombia. If I can just get Jose to turn the camera around, on that side there is Venezuela just after the second white

tent on the left of your screen, on the left of your screen I should say is Venezuela.

So people making this journey, Richard, pretty much 33,000 every single day, but they come here to shop every couple of days and buy basic staples.

I've seen everything from eggs to flour to milk, toilet paper, nappies, so very basic essentials. And people having to do this, this almost every

couple of days.


Rice, pasta, all the food, oil she bought --


Who would you blame for this?


SOARES: She blames Maduro. There she goes, this is the reaction, Richard, I've been getting every day.



SOARES: Flour, more flour here.



SOARES: More Flour, I mean, flour is one of the main staples here, is where they make the actual Arepas bread. So you're seeing a lot of it.

I've seen mothers with children coming here to get -- even get their children vaccinated, Richard. So this is it, they come in with these

trolleys, their suitcases --

QUEST: Right --

SOARES: Cramps, anything they can get their hands on, with a suitcase filled, Richard, of money really, that's worth nothing because of

hyperinflation, and that they come out with what they need. I mean, and then on this road, this bridge, you will see even people buying


So really, it's a crisis, it's not just political crisis, but as you can see with your very own eyes, this is a humanitarian crisis. And these

people now are making their way to Venezuela. They're going to get to show their passports, no stamp needed, and then from there, Richard, worth

reminding everyone, they still have to make their way home.

Walk, get a bus in which you pay to whatever you can to put food on the table, Richard.

QUEST: This is -- I mean, Isa, thank you for bringing this in such graphic detail to us. But quick question, there seems -- there's no stopping them

going backwards and forwards across the border. Colombia hasn't created a restriction. And I guess what I'm saying is, no, are they crossing over

and just staying in Colombia?

SOARES: So this is what we have. No to restrictions whatsoever between the two countries. They can come in and out as many times as they want,

all they have to show is their ID card or their passport and that's it. But more than a million or so who have come over has stayed.

Three million have left, and one million have actually stayed in Colombia. So this is not just a crisis for Venezuela, of course, but also for the

people here in Colombia who are carrying the burden of what this crisis is.



SOARES: Shopping, here you've got toilet rolls.



SOARES: The government, unfortunately.


SOARES: There's no one else.

UNIDENTIFIED MALE (through translator): They say, they stopped production of a country. Shortage, the shortage of medicine, a lot of companies -- a

lot of companies actually completely are broken.

SOARES: Talking a lot about industry. A lot of -- in the sugarcane industry, he said infinity.

[15:50:00] Everything they can get their hands on, the government, they have, awareness crisis because of this, and I'm going to move out of the

way so you can see everyone.



SOARES: Food, just food, everyone -- that's what everyone has been telling me. So Richard, this is it. And of course --

QUEST: So --

SOARES: And you know, once they get to that side, they've got a long journey home. And I spoke to one lady about an hour or so ago, Richard,

who told me that now to make the crossing from Venezuela to Colombia, the Venezuelan soldiers are charging her $32.

And it's unfortunate, of course, given the crisis, but worth reminding everyone that they, too, don't have food -- they too don't have food to put

on the table. So lots of --

QUEST: Isa --

SOARES: Strong words here for one man and one man only for this crisis -- humanitarian crisis you're seeing right here, and that is directed solely

on Nicolas Maduro, Richard.

QUEST: Let's talk a bit more, Isa, on this, where -- the people -- the people who are there, the people who are battling through --

SOARES: This lady is --


SOARES: Yes --

QUEST: Sorry, what was she saying?

SOARES: Sorry to interrupt you, Richard, that lady was looking at the screen and she was saying, we need help, please, we need help. Call for

help. Some people saying in desperate need of help, others saying we want help, but we don't want to be in anyway beggars, we don't want the

humanitarian aid, we want the sanctions to go. So the U.S. sanctions they'll put in place. But go ahead, Richard, you were saying?

QUEST: All right --


QUEST: OK, we will leave it there. Isa, thank you. Stunning reporting, bringing the reality of the situation to us, thank you. We will be back in

a moment, Donald Tusk doesn't beat around the bush when it comes to Brexit. His last remark about those in hell, well, there's a special place in hell

-- well, that's got everybody up in arms.


QUEST: A new campaign in Nigel Farage is calling Donald Tusk an arrogant bully for the remarks he made about Brexit backers. Donald Tusk; the

Council President spoke after a meeting with the Irish Prime Minister in Brussels on Wednesday. He did not hold back.


DONALD TUSK, PRESIDENT, EUROPEAN COUNCIL: I have been wondering what the special place in hell looks like for those who promoted Brexit without even

a sketch of a plan how to carry it safely.


[15:55:00] QUEST: Bianca is with us, who covers Brexit. Well, I mean, that was very strong. But you could hear the irritation, the resentment,

the fury in this -- the tight tones in which he said it.

BIANCA NOBILO, CNN CORRESPONDENT: Yes, the power language was really striking. He did sound very angry, so much so it got me wondering, is this

the EU kind of finally accepting where things are, like one of the stages of grief.

And this was Donald Tusk's anger because he's remained one of the eternal optimist of this process. Thinking that the U.K. might end up remaining,

perhaps there will be a second referendum, he always mentions that, he keeps the door open and appeals to the Euro files within the United


But today, he seemed to have accepted that with a cold thud, and he said that the facts are unmistakable --

QUEST: OK, right --

NOBILO: That is not the will need --

QUEST: Right --

NOBILO: To do that.

QUEST: Tell me, what is the reaction in the sense, I mean, look, in Britain. Somebody says that against the British, you know, it gets the all

British dander up, who do you think you are type of thing? And next thing you know, everybody is marching forward saying, down with Tusk.

NOBILO: Well, you would expect Downing Street to have the most diplomatic of the angry reactions, and that was the case, they simply have, whether or

not it was helpful for him to use that kind of language, but the Democratic Unionist Party, May's government partners.

The leader said it was deliberately provocative and disrespectful. And Richard, even another member of the DUP actually said that Donald Tusk was

a devilish Euromaniac that was so set on having the U.K. bound to the chains of EU bureaucracy.

So really fighting to walk another member of the cabinet Andrea Leadsom, was talking about how this reiterated to her why the U.K. has to leave.

And she said it was completely out of order as other members of the cabinet, so a really strong and swift reaction --

QUEST: Yes --

NOBILO: As you would expect. And not creating the goodwill that they both say that they need at the moment, both sides of this.

QUEST: Just looking at "The Sun" newspaper's comment, "Tusk's place in hell proves why we need to leave the EU". Which is exactly what you were

saying. In a sentence or two, is there now an acceptance in Britain, the U.K. is out?

NOBILO: We have seen something of a diminishing of the people's vote campaign. If it was going to succeed, most people think it would have

succeeded two weeks ago when --

QUEST: All right --

NOBILO: May's deal failed. But -- so, I think, yes, those hopes are extinguishing.

QUEST: Good, thank you. And that is QUEST MEANS BUSINESS for tonight, the closing bell is next, I am Richard Quest. Whatever you're up to in the

hours ahead, I hope it's profitable.