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QUEST MEANS BUSINESS
Theresa May Is To Resign On June 7th; Explosion In The City Of Lyon, France; The Business Community's Reacion About Post Theresa May Brexit Environment; ; Kenyan Court Upholds Law Against Gay Sex; Video of Pelosi Slurring Her Words Goes Viral. Aired: 3-4p ET
Aired May 24, 2019 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is CNN Breaking News.
HALA GORANI, CNN INTERNATIONAL ANCHOR: The Brexit mess gets even messier, Theresa May is to resign and Britain asks what's next? It is May 24th,
2019. I'm Hala Gorani outside the Houses of Parliament.
JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR: And I'm Julia Chatterley in New York where stocks are making minor gains today as Donald Trump suggests
he could use Huawei as a bargaining chip with China. Richard Quest is out today and this is QUEST MEANS BUSINESS.
GORANI: Good evening. Theresa May is out and the race to replace her is on. Nearly three years of course after the U.K. voted to leave the E.U. in
that Brexit referendum, the Prime Minister often derided by critics as May- bot in the end did show some emotion when she announced that she was stepping down from her leadership position in the Conservative Party.
(BEGIN VIDEO CLIP)
THERESA MAY, BRITISH PRIME MINISTER: I will shortly leave the job that has been the honor of my life to hold. The second female Prime Minister, but
certainly not the last. I do so with no ill will, but with enormous and enduring gratitude to have had the opportunity to serve the country I love.
(END VIDEO CLIP)
GORANI: So what happens next? Now, it's important to note that Theresa May is still Prime Minister and she will remain in her role until a new
leader of the Conservative Party is elected.
On June 7th, she will resign as leader of the Conservative Party. A leadership contest then starts on June 10th and it is likely to last six
The winner of that contest will become the 77th Prime Minister of the United Kingdom. Carole Walker and Nina dos Santos are here.
Carole, let's start with you. So we've been talking about likely contenders and the front runner is Boris Johnson. But let's talk about
just the next few weeks now, before we project ourselves to July. What's going to happen in the immediate future?
CAROLE WALKER, POLITICAL COMMENTATOR: Well, look I think this leadership contest that's been going on under the radar for weeks, if not months now
is now going to be bursting out into the open, I think even tomorrow, you could see some of the contenders out and about putting out their stalls,
and that could be a huge field, at least at the start of this leadership contest.
Because I think many senior MPs and even some of those not senior MPs, who would like to have a big job in the future might think it's worth standing
to see if they can get sufficient support in order to try to raise their profile.
But what will be fascinating is to see in that first round, which of those senior ministers are there with sufficient support amongst conservative
MPs, to get them through the initial rounds to become serious contenders, but I think there's going to be a lot of jostling for position, a lot of
ministers out there trying to get their names up there, up and on the media so that they can get their names in the frame right from the outset.
Boris Johnson is the biggest name, the favorite, the best known. But as I was saying a little bit earlier, these contests are hugely unpredictable.
And there's an awful lot to play for.
GORANI: So how does this impact Brexit though? Because that deal that the E.U. is saying is still on the table seems to have fallen completely off
the table in this country?
NINA DOS SANTOS, CNN CORRESPONDENT: Yes, that's the real question mark here. And it's not been done with anybody who wins this, what is likely to
be a rather bitter -- a fight for the Conservative Party leadership will actually end up in a position when they can overcome the type of impasses
that they are on in the House of Commons behind us, before then trying to overcome the differences with Brussels, which as you pointed out, stuck to
this plan, which now seems dead in the water.
When it comes to the pattern of how things may play out. I think there's wide acceptance and Carole might agree with me here in Westminster that a
lot of this is the situation Theresa May is in has been precipitated by big Brexit beasts in her Cabinet. They've been very effective in trying to
maneuver themselves into potential leadership candidate positions for some time.
And so there is an acceptance even in Brussels that whoever is going to come through the door of Number 10 is likely to be more pro-Brexit than
soft Brexit, neutral from hard Brexit.
GORANI: She was a remainer before the referendum and then she promised to deliver the Brexit that people voted for. She said, although it's unclear
what kind of Brexit people in this country before, that was not explicitly stated in the referendum question.
[15:05:12] GORANI: But I guess the question is, does it make really a difference who the Prime Minister is?
WALKER: I think it will make a huge difference. I think everyone in the party and more widely in the country, particularly those more than 17
million people that voted for Brexit are looking for a fresh approach.
I think many people will be looking for somebody if it is someone like Boris Johnson, who can approach in a more positive and a more optimistic
approach, in order to try and lift the spirits. It was always felt that Theresa May was trying to manage a problem rather than looking at the
positive sides of it.
Look, I think the what we're going to see at the end is --
GORANI: Those who don't agree with Brexit think the whole thing is a problem. I mean, that Brexit itself was the problem.
WALKER: Absolutely. But what is fascinating is that most of the leading contenders are saying that they want to deliver Brexit. And I think what
you're going to see now is not leadership contenders saying, "I'm going for a new deal," but saying, "I'm going to go back to Brussels. I'm going to
try and get some significant changes," particularly to the thorny question of the backstop, which many people feared, would trap the E.U. and far to
trap the U.K. and to far too many of the E.U.'s rules and regulations.
What they will say is, "We're going to try and seek changes. We're going to try and seek a new deal." But the big difference will be that if they
cannot get the changes that they want, that they will be serious about saying to the European Union, they are prepared to walk away.
The difficulty is, you've got a Parliament that does not want a no-deal Brexit. And that will mean there could easily be even later this year,
another general election.
DOS SANTOS: Yes. And delivering Brexit of course is crucial for the survival of the Conservative Party. That, is that -- the message is, you
can hear, we hear the protesters -- it's Steve Bray.
GORANI: We know Steve now.
DOS SANTOS: We do, we do, yes. But delivering Brexit is crucial for the survivability of the Conservative Party. When you're hearing people like
Nigel Farage start to agitate from the sidelines even on Twitter saying, "Look, this is a party that's had two pro-E.U. leaders, and over the last
three years two pro-E.U. leaders were to step down from their positions because they've been defeated by Brexit."
So essentially, again, agitating first time for somebody come through the doors who will deliver it.
GORANI: And it is interesting. Also the fact that the U.K. is taking part in the European Parliamentary Elections, which wasn't the plan if the U.K.
had exited the E.U. in March, it wouldn't have happened. But now you're having the resurgence of Farage and his brand of politics. What is that
doing to the country?
WALKER: That is a hugely significant factor. I think just as when David Cameron was contemplating an E.U. referendum, he was worried about
conservative votes leaching to U.K. -- which at that stage was led by Nigel Farage.
Now Nigel Farage has got this new Brexit Party, it's only been in existence a few weeks. It's not just agitating from the sidelines, it is likely to
emerge overnight on Sunday, when we get the results of those E.U. elections as the biggest party in terms of European MPs from the U.K., it is likely
to emerge with the most MEPs. It could well push the Conservatives into third place. I think that that will send shockwaves through the
GORANI: Well, the Conservatives aren't campaigning. I interviewed a Conservative MEP and he was saying, he didn't get a dime from the
Conservative Party. He is self-funding his campaign. That's how much the Conservative Party has abandoned its European Parliamentary candidates, it
WALKER: The Conservative MPs and Ministers are going to look at the results of that E.U. election and think of the potential damage that the
Brexit Party could do to the Conservative vote as a forthcoming general election.
They will not want to have a general election without having got the U.K. out of the European Union at whatever cost.
GORANI: Okay, we've got leave it there. We have a -- and we will be talking, I believe a little bit later at this hour, Carole Walker and Nina
dos Santos, thanks very much to both of you.
In Europe, the Brexit deal is still on the table as we were discussing there with Nina and Carole. The Dutch Prime Minister says an orderly
Brexit is still the plan and European Commission President Jean-Claude Juncker echoed that sentiment through his spokesperson. Listen.
(BEGIN VIDEO CLIP)
(BEGIN VIDEO CLIP)
MINA ANDREEVA, DEPUTY CHIEF SPOKESWOMAN, EUROPEAN COMMISSION: President Juncker followed Prime Minister May's announcements this morning without
personal joy. The President very much liked and appreciated working with Prime Minister May and as he has said before, Theresa May is a woman of
courage, for whom he has great respect. He will equally respect and establish working relations with any new Prime Minister, whomever they may
be, without stopping his conversations with Prime Minister May.
(END VIDEO CLIP)
[15:10:06] GORANI: Alexander Stubb is the former Finnish Prime Minister, and he joins me now. What went through your mind when you heard Theresa
May say that she'd stepped down?
ALEXANDER STUBB, FORMER FINNISH PRIME MINISTER (via Skype): And I think tonight, in all circumstances, she is going to feel quite relieved.
There's a burden of weight of power and responsibility that drops off and I'm sure that at one stage in her life, she'll be able to look back at this
period, and smile and say that, you know, she tried the best that she could and didn't get through what she wanted.
So I felt for her, but I felt for her throughout. I remember being Prime Minister and thought that this was the toughest job in town until I saw
what Theresa May was going through. And, you know, now it's the end of that story.
GORANI: But I wonder if this job would be any easier for anyone else? I mean, would it be easier if Boris Johnson were Prime Minister? Would it be
easier if there's a general election and Labour came out on top? Because Brexit itself is probably the most difficult nut to crack in terms of for
any politician, isn't it?
STUBB: Yes, I mean, I think it's Mission Impossible to be honest, because there's only going to be losers in this whole process. And no matter who
is the Prime Minister, the midwife of the actual process is doomed to fail.
Because, you know, if the U.K. decides not to leave, say, through a second referendum, or otherwise, it is going to be a very divided and split
country. If it decides to leave, it's going to be a very divided and split and much poorer for it.
So this is a complete lose-lose proposition. And I just, you know, sometimes feel that the Brexiteers should wake up and, you know, smell the
coffee. I've said it before and I'll say it once more. I mean, leaving the European Union is a little bit like leaving internet, you can pull the
plug, but it's probably the most stupid thing that you can do. The best thing to do is to try to influence its content rather than take off.
GORANI: But what should Europe do, do you think? Because we heard from the Dutch Prime Minister, he said, the deal is on the table. Are they just
kind of burying their head in the sand here? Clearly, this deal is not going to pass Parliament. So there needs to be another proposition, right?
STUBB: You know, no, I don't think so. I mean, to be quite honest, I think the European Union has been throughout this negotiation, quite calm,
cool and collected. And it needs to continue to be patient.
In many ways. It also shows the power of the European Union, when it is united, because you haven't seen many countries moving in different types
of directions. And when the E.U. is united, it's a very tough cookie to negotiate with. And you can see who's been in the driver's seat from the
beginning, it is the E.U., not the U.K. That's the rules of the club.
When you come in, you have to play by the rules; when you leave, you have to play by the rules of leaving. And that's why the U.K. as always had a
very weak negotiating hand that's regardless of the country itself. Whoever would leave would have that same forehand.
GORANI: All right, Alexander Stubb, the former Finnish Prime Minister, thanks for joining us.
Julia, over to you. I'll see you in a little bit. Thanks so much, Hala.
CHATTERLEY: All right, let me bring you up to speed now is some developing news out of France. There's been an explosion in the City of Lyon. Police
say seven people have been quote, "likely injured."
Prosecutors say the blast may have been caused by a parcel bomb and have opened a terror investigation. French President Emmanuel Macron says there
are no fatalities. Let's get to CNN's Melissa Bell now in Paris for us.
Melissa, what more can you tell us about this and who indeed may have delivered this alleged parcel bomb? What do we know?
MELISSA BELL, CNN PARIS CORRESPONDENT: Well, this is a man who is still on the run, Julia, several hours after this attack took place. We knew it was
an attack from the mouth of the President himself who'd been interviewed live shortly after it had taken place, a parcel bomb we understand that is
the working theory at least for authorities at this stage that exploded in front of a bakery at rush hour just after half past 5:00 p.m. local, a busy
time when people are coming out of work at the very heart of Lyon in what is the bustling city center.
What we understand is that there were only people who were wounded. Emmanuel Macron in the last few months has tweeted in their support. We
understand also, Julia that France's Interior Minister and the Paris prosecutor in charge of anti-terror investigation since this is now an
anti-terror investigation has been opened are both on their way to Lyon, on their way to the scene to try and gather more information.
France had been relatively quiet on this front. We hadn't had a terror attack that we'd heard about one that hadn't been prevented by authorities
since December. You'll remember when a man went on the rampage through Strasbourg Christmas market.
So after a period of relative calm, once again, what authorities believe for the time being or at least are investigating as a terror attack --
[15:15:09] CHATTERLEY: And Melissa, very quickly, what efforts of the police made here to perhaps step up security in light of what we've seen
here? As you said, this individual perhaps still on the run. What more are they doing here?
BELL: Well, the entire city center of Lyon as you would imagine is another focus of an extensive man hunt. They are very keen, of course, to get
their hands on the man who carried this out.
We understand that CCTV footage may have seen him ride up in a bike to deliver the parcel that was to go off just a couple of minutes later. This
is an area that is very closely surveyed. There would have been a lot of cameras on it. That is what police are working with for the time being.
What we understand now is that as a result of what happened tonight in in Lyon, Julia, some extra measures are going to be taken around tourists
locations, some of the busiest parts of the city centers, but also of course, ahead of Sunday's vote at polling stations when French -- the
French go to vote on Sunday in the European elections -- Julia.
CHATTERLEY: Yes, reassuring people. Melissa Bell, thank you so much, over in Paris there. All right, we're going to take a quick break.
But up next, we take a look at how investors reacted to news of Theresa May's resignation. Like the Prime Minister, of course the pound has been
under pressure now for weeks. What next? We will be asking. Stay with QUEST MEANS BUSINESS.
GORANI: As you might expect, it's been a volatile day for the pound, but the British currency rose on news of Theresa May's departure and it is
trading higher now against the dollar.
London's main share index, the FTSE also ended the day higher. There's much more uncertainty ahead though obviously, Julia, you're in New York.
So on the day the FTSE is up two thirds of a percent, it's nothing dramatic. But going forward, what are traders, investors, the business
community saying about a post Theresa May Brexit environment?
CHATTERLEY: Yes, it's a good question, Hala. And what we've seen if you look over the last few weeks is pressure on the pound. We've lost around 3
percent, a further 3 percent over the last three months or so.
We're still down 12 percent though from the highs that we were at in the referendum. So there's still a lot of bad news in the price. And I think
the pressure that we've seen comes down to the fact that when we saw the breakdown in the negotiations between the Conservatives and Labour,
investors were looking at this and going, "You know what? If we get a hard Brexiteer back into play here, then the likelihood that we see volatility,
messy negotiations, even a no deal exit in the end, the probability just rose.
[15:20:13] CHATTERLEY: So I think that's the way investors are looking at this. The bigger issue is I think for businesses.
They've bemoaned the economic paralysis as far as policy is concerned now for months, in fact, years. And obviously, that's going to continue. And
the risk is that it's further prolonged here.
Listen to what the chief of the British Chamber of Commerce told CNN earlier today.
(BEGIN VIDEO CLIP)
ADAM MARSHALL, DIRECTOR GENERAL, BRITISH CHAMBERS OF COMMERCE: We only have to look at the evidence and the numbers to see that business
investment has really, really weakened over the past year, in particular. We're seeing companies postponing, and in many cases, canceling planned
investments here, trying to wait until the point in time when they can get some more clarity on what the future is going to look like and whether they
can see a payback for that.
(END VIDEO CLIP)
CHATTERLEY: You know, those that haven't been canceling investments are making firm decisions, and that's the financial sector. I mean, Hala, you
and I have discussed in the past an estimated $1.2 trillion worth of assets having left the financial sector because there's no backdrop or backup
trading rules for the financial sector here in the incident that we see a no deal exit, they've not sat on their hands, they've shifted assets.
And I'd argue that number is probably higher here. For them, the uncertainty continues. And that's not going to change. The risk is that
of course, we get back after the summer recess for these politicians, even with a new leader, six weeks to make a decision before Halloween. The
GORANI: Right, and uncertainty is never comfortable, especially when you're sitting on money and wondering if you should invest it or not. So
that's going to be something that won't be resolved in the next few months.
I'll see you in just a little bit, Julia, because I have with me here Karan Bilimoria. He is the chairman and founder of Cobra Beer. And he is an
independent cross bench peer in the House of Lords. Thanks for being with us.
So I was speaking to the economics commentator for "The Telegraph," and when I told him, you know, Brexit is going to be bad for the economy
according to experts, he said, manufacturing is up, the pound was overvalued before the Brexit referendum anyway, it's now where it should
be. Unemployment is low. None of these disastrous predictions materialized.
KARAN BILIMORIA, CHAIRMAN AND FOUNDER, COBRA BEER: Yes, of course, they would say that that a project fear three years ago, didn't really
materialize. But Brexit has not happened. The reality is that business hates uncertainty. And we've now had uncertainty going on to infinity and
beyond. It's three years since the referendum.
Just look at where we were three years ago before the referendum. We were the fastest growing economy in the Western world. We were doing really
well. Look at us now. We're the laughingstock of the world. And the business community is really worried about the uncertainty. Inward
investment is worried.
Holland has overtaken us as the highest recipient of inward investment. New York, which we took years to overtake as the number one financial
center in the world has now overtaken us and gone back to being the number one financial center in the world.
We are not doing well out of this at all. And Theresa May's "Brexit means Brexit," I'm sorry. All the hypocrisy that is going on now. Oh, she was
wonderful. I mean, come on. Let's get real.
As Home Secretary, she is responsible for the cuts to our police forces when we've got serious crime, knife crime over here and it was on her watch
as Home Secretary. The immigration policy that the government has is a hostile immigration policy which she championed for six years.
GORANI: Well, I think those who are congratulating her now were the were the ones criticizing her very loudly before perhaps seeing her emotional in
that last address was something that prompted them.
Let me ask you, Cobra Beer, other businesses -- let me ask for the impact on your business you founded.
GORANI: Before the Brexit has happened, but after the referendum.
BILIMORIA: Sure. Just the day before yesterday, I was in Belgium. I went from here on the Eurostar, seamless, frictionless to France, got into a
car, crossed there, no border to the brewery in Belgium where I make one of our products -- King Cobra. Spent the day at the brewery, back to France,
back across and over here in one day.
Seamless movement of goods, services, people and capital. That's what the single market is about. I manufacture in Europe. I import here, I export
around the world. I manufacture here. I export to almost every European Union country. It's frictionless. It's wonderful.
GORANI: And what would happen after if the U.K. leaves the single market?
BILIMORIA: Oh, it would make it much more difficult. And all this talk about let's just go on WTO rules. Let's just have a no deal. All these
Brexiteers playing -- playing to the gallery because the 80 percent of the Conservative Party members because the leadership election is going to take
place will go to the Conservative Party members.
Eighty percent of them are rabid Brexiteers who would be happy to leave on a no-deal basis, and no deal basis will be disastrous for business.
GORANI: But the other thing that the economics commentator for "The Telegraph," Liam Halligan told me is look, trade with the E.U. is only 10
percent of GDP. It's not the end of the world.
[15:25:06] BILIMORIA He is talking -- Liam Halligan is talking absolute nonsense. Fifty percent of our trade is with the European Union.
GORANI: He is saying what it accounts for in the GDP figure, not how much the trade it accounts for.
BILIMORIA: If I say therefore the 39 billion that we're going to be giving the European Union if we leave out of a 2 trillion pound economy, that's an
immaterial figure. If you look at it that way.
The reality is 50 percent of our trade, 45 percent of exports, 55 percent of imports are with the European Union. On top of that, another 17 percent
of our trade is through the European Union free trade agreements around the world, for example, Canada, and now the biggest free trade agreement in the
world, Japan. So two thirds of our traders with us through the E.U.
GORANI: Is it possible -- can I ask you? Does any part of us see a positive outcome from Brexit, that yes, it will be painful for a few years,
but then eventually the U.K. will strike trade deals with other countries. It will normalize its relationship with the E.U.? Something good will come
of this eventually.
BILIMORIA: I have lived this for three years and I'm very critical of the European Union in many ways, the European Parliament, the way it operates,
the bureaucracy. There's a lot that is not good about the European Union, but on balance without any doubt, we as a country have done really well as
a member of the European Union, and it's far better -- every option to remain in the European Union will be the best option by far.
The least worst option would be a Norway-type soft Brexit. We continue to have membership in the single market ...
GORANI: But you need freedom of movement and people for that.
BILIMORIA: ... and Customs Union and we benefit from the E.U. I mean, when we do trade deals, they talk about trade deals, 65 million people
versus 500 million people, the largest trading bloc in the world has much more clout.
GORANI: Karan Bilimoria, thanks so much for joining us. Really appreciate your time.
The 45th President of the United States and the highest ranking woman in the history of American politics are engaged in a public war of words. The
feud between Donald Trump and Nancy Pelosi is getting uglier. We'll be right back.
[15:30:06] GORANI: Well it started to rain outside the Houses of Parliament. It's a fitting end to a day that probably wasn't the happiest
for the outgoing Prime Minister Theresa May. I'm Hala Gorani.
JULIA CHATTERLEY, HOST, QUEST MEANS BUSINESS: And I'm Julia Chatterley in New York where it's not raining, and this is QUEST MEANS BUSINESS.
Theresa May has outlined her resignation as Prime Minister of the United Kingdom. She'll step down as Conservative Party leader on June 7th and
allow a leadership contest to determine her successor. Prime Minister May said whoever assumes number 10 Downing Street next will require compromise
from all sides to deliver Brexit.
(BEGIN VIDEO CLIP)
THERESA MAY, PRIME MINISTER, UNITED KINGDOM: It will be for my successor to seek a way forward that honors the results of the referendum. To
succeed, he or she will have to find consensus in parliament where I have not. Such a consensus can only be reached if those on all sides of the
debate are willing to compromise.
(END VIDEO CLIP)
CHATTERLEY: Kenya's high court has voted to uphold a law in the country that makes same-sex relations illegal. The court says there is not enough
evidence of discrimination against the LGBTQ community to strike down the colonial era rule. Activists have been seeking to have the law repealed
As also familiar with the Britain's royals, family tell CNN that Prince Harry will join the queen and U.S. President Donald Trump for lunch at
Buckingham Palace on June 3rd. But the prince's wife Meghan will not be joining them as she is still on maternity leave, away from royal duties.
GORANI: Well, we are not singing in the rain, but we are going to be talking in the rain. Our top story tonight, British Prime Minister Theresa
May has admitted that her Brexit plan has failed and has outlined a plan for her departure. A leadership fight for control of the Conservative
Party and the United Kingdom is up ahead.
It could be one of these men, Dominic Rob, Michael Gove, Boris Johnson, all among the top contenders. Whoever is chosen, that person will likely
determine what Brexit looks like once and for all. On the other side of the aisle, the Labor Party leader Jeremy Corbyn says that enough is enough.
(BEGIN VIDEO CLIP)
JEREMY CORBYN, BRITISH LABOR PARTY LEADER: Yes, we want to prevent a no- deal Brexit, and we will do everything in parliament to prevent a no-deal Brexit. But the reality is a new Conservative leader isn't going to solve
There has to be another opportunity for the people of this country to decide who they want to be in their government, how they want the
government to be run, what the long-term strategy is of that government. I think we need a general election. We don't need another Tory leader
installed by Tory MPs.
(END VIDEO CLIP)
GORANI: Well, Conservative MP Bob Seely joins us now from the Isle of Wight, he's on Skype. Who would be your choice to replace Theresa May?
BOB SEELY, CONSERVATIVE MP: Michael Gove.
SEELY: I think he has three attributes, I think he really has an office, so when it comes to intellect and policy-making, he is a clear national
leader. Secondly, he is the best orator in parliament. And I think he will show Jeremy Corbyn week in and week out.
Thirdly, he will protect the union. He's an Aberdeen man, brought up in Scotland, and I think he can do all that while hopefully delivering Brexit.
With the Brexit, he'll beat(ph) all of them(ph).
GORANI: So what is this Brexit that you think Michael Gove could deliver? I mean, because you need Europe to sign onto any deal. What is it that he
would do differently, do you think?
SEELY: Hala, if you're -- if let's say assuming you're right, and the European Union isn't going to go and look at the deal again, then we leave
the European Union on the 31st of October, yes? I think the alternative is that there will be some intense negotiations in September with a new
But potentially the all star(ph) MP is on site, potential to rewrite elements of the deal. If that is acceptable to both sides, then we leave
with a deal because we're just about getting the numbers through the House of Commons. Assume a later party would continue to weigh(ph) on this.
GORANI: Yes, but I guess I'm wondering why you're so confident if it took Theresa May two and a half years to come up with a deal that couldn't pass,
you know, parliament and now whoever replaces her will have just a few weeks.
SEELY: I think the problem is that Theresa May, and I think she and many agree(ph) with other people, Theresa May became a problem herself. She
lost confidence of Brexiteers, (INAUDIBLE) and Prime Minister lost the support of the Unionist and Gove is a very strong Unionist -- he's a very
strong Unionist by identity.
[15:35:00] And I think there's the potential there to get one side. Fine, the European Union won't do a deal and neither will stay in or we leave
with no deal, so I think no need be. The very same opportunity for the middle way, somebody who was a Brexiteer who's willing to negotiate.
These middle grounds is going to dry up, and it'd be Boris versus Dominic Raab or potentially that middle ground will grow. You know what? Somebody
who is a Brexiteer and also somebody who will deal with the European Union.
GORANI: All right, thank you very much, Bob Seely, an MP joining us from the Isle of Wight. Julia, over to you.
CHATTERLEY: Thanks so much, Hala. And actually it's not just the U.K. politics right now that's completely bonkers. Let's try American politics.
The feud between Donald Trump and Nancy Pelosi is getting more personal and bordering on the downright absurd.
You remember yesterday, Speaker Pelosi took a shot at the president's mental state, asking for a Trump family intervention. President Trump
fired back, calling the speaker crazy Nancy and a mess. Then Trump shared a video of Pelosi that was doctored to make it appear as if she was
slurring her words.
Boris Sanchez is in Tokyo where President Trump will land in around 12 hours time. Boris, these are the two of the highest-ranking politicians in
the United States throwing barbs around like children. The president clearly feels persecuted by the Democrats and their investigations. Can
they kiss and make up here for policy sake?
BORIS SANCHEZ, CNN WHITE HOUSE CORRESPONDENT: Well, that's a very tough question to answer. President Trump sees politics at a very personal
level. One source telling CNN that the president feels personally persecuted by Democrats, that they're trying to ruin his life and hurt his
family with all these investigations going on in the House of Representatives.
The president being very aggressive in his language about House Speaker Nancy Pelosi, saying that she's bad for the country and the Democrats are
obstructionists. Listen to more of what the president said before departing for Tokyo.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: When you say a personal attack, did you hear what she said about me long before I went after her?
Did you hear? She made horrible statements, she knows they're not true. She made -- she said terrible things.
So I just responded in kind. I'm only speaking for myself, I want to do what's good for the country. I think Nancy Pelosi is not helping this
country. I think the Democrats are obstructionists. They're hurting our country very badly.
(END VIDEO CLIP)
SANCHEZ: And the president now leaving the political battles of Washington, expecting a very warm reception from Japanese Prime Minister
Shinzo Abe. The two leaders with plenty to discuss, trade and security. On trade, President Trump wants access to Japanese agricultural markets for
American business people.
And on security, both men have a lot to discuss regarding North Korea and recent aggression, a test of short-range ballistic missiles, and of course,
China's rising influence in the region.
Let's not forget, Shinzo Abe is facing re-election in just a couple of months, in July, so having President Trump here visiting the imperial
family, attending a Sumo-match, playing golf which they often like to do really helps him and shows the Japanese people that no one is better at
handling President Trump, often a mercurial leader with a very difficult temperament as you saw there in the sound bite with Nancy Pelosi, and that
he can certainly do that for what is a key strategic alliance for Japan.
CHATTERLEY: It's quite --
CHATTERLEY: Fascinating, you used the word "handle" there, Boris, handling President Trump. I mean, he's got all these tense, difficult relationships
and negotiations going on in the international community. And you know, the Democrats, Congress is doing its best to undermine him back home.
Whatever you think of this president, shouldn't they all be presenting a united front in the face of the challenges that the country has around the
SANCHEZ: And Julia, that's something that the president frequently complains about. He believes that Democrats are out to get him, and
frequently during his foreign trips, there is news boiling at home with the now concluded Russia investigation or other issues that consistently plague
him when he travels abroad.
He believes that Democrats should be sticking with him, specifically on trade, for example, the issue of tariffs. And so he's trying to make a
case here that they should step aside and let him lead. Obviously, foreign leaders are well aware of the difficulties that President Trump is having
domestically, and he's accused the Chinese, for example, in trade negotiations of essentially trying to wait him out of office before
finalizing a bilateral trade deal with the United States, Julia.
CHATTERLEY: Yes, something tells me those investigations aren't going away any time soon. Boris Sanchez in Tokyo, thank you so much for that. All
right, just ahead, the politics of personal attacks, Donald Trump has plenty to say about one of America's most powerful Democrats.
[15:40:00] And Facebook and YouTube took action over it. We'll take you live to Washington to see that story. Stay with us.
CHATTERLEY: Welcome back to the show. Huawei may be on the U.S. trade blacklist, but President Donald Trump is raising the possibility of easing
restrictions on the Chinese tech giant as part of a broader trade deal with Beijing. Clare Sebastian is following this story and joins me now.
Clare, you and I had speculated whether there could be a carve-out for Huawei as part of a border trade deal, but after all the emphasis that the
White House has placed on the security risk for Huawei, how does that just go away in that instance?
CLARE SEBASTIAN, CNN REPORTER: It's baffling, Julia, and I think particularly striking coming a day after Mike Pompeo, the Secretary of
State went -- I would argue almost nuclear in his rhetoric towards Huawei. Saying that, you know, giving them any kind of information is tantamount to
handing it to the Chinese government.
The Chinese government then hitting back about saying that is an example of the U.S. continuing making up subjective, presumptive lies. So that led to
an uptick in rhetoric, and now the U.S. President coming out and saying that actually, it could be a bargaining chip really undermines that.
Because how are they going to be serious about this being a national security risk if they're then prepared to use it in the trade war? Having
said that, that did slightly calm the markets. The mere fact that the president talking about a potential resolution was something of a solace to
these very rattled markets.
But it really doesn't move the needle any further forward. These talks are still stalled, there's still no prospect of a deal. And longer term, you
know, if the U.S. administration is prepared to use individual companies like Huawei as bargaining chips in this trade war, it raises the question
of what China could do in return when it comes to individual companies.
CHATTERLEY: Yes, it's such a great point for the businesses that do trade or at least are in some way connected for the likes of Huawei, what do they
do in the interim with all this uncertainty? What we've seen is a lot of the complacency, I think being priced out of the market on hopes of a trade
But even that's a sort of a split story among the chip makers versus the broader index. Talk me through what we've seen, particularly since those
tweets two weeks ago when we saw the president about turn on this relationship.
SEBASTIAN: Yes, it's been really striking since that tweet on May the 5th, where he raised the rates or he threatened to raise the rate of tariffs on
Chinese goods. The S&P 500 is down about 4 percent, but the chip makers collectively are down about 16 percent.
[15:45:00] Qualcomm, the most exposed down about 25 percent. So that area is really where the rubber meets the road here. They are heavily exposed,
not only to Huawei, but to the Chinese economy in general. So they are really in the middle of all of this. And I think that is -- that is where
the focus is going to be going forward. The context of course, the S&P 500 just 4 percent from its all time high.
The Dow just about 5 percent, but Silicon Valley is where this is all concentrated. And I think again, this is about the prospect of potential
retaliation from China and their exposure to that economy if it starts to slow as a result of this trade war.
CHATTERLEY: Yes, so, one analyst saying Apple's price for Armageddon here in the Chinese relationship, but yes, for now we simply don't know. Clare
Sebastian, thank you so much for that.
All right, President Trump is traveling amid a feud with the top Democrat Nancy Pelosi as we were discussing earlier. A doctored video of the U.S.
house speaker has emerged. It makes it seem as if she's slurring her words, and now it has millions of views on social media. It's from a
speech she made earlier this week. We're going to show you the real one first and then the fake one.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA): And then he had a press conference in the Rose Garden with all this sort of visuals that obviously were planned long
before. And then he had a press conference in the Rose Garden with all of this sort of visuals that obviously were planned long before.
(END VIDEO CLIP)
CHATTERLEY: The viral video has been downgraded by Facebook for being false and it's been removed by YouTube, the firm tells CNN. Joining me now
from Washington is CNN's Brian Fung. Brian, great to have you with us. You can clearly see the difference between the two videos. How easy is it
to create this effect? How does this even work?
BRIAN FUNG, CNN BUSINESS TECH REPORTER: Well, it's extremely easy according to digital forensic experts and audio experts. All that has to
happen essentially is for the original video to be slowed down using digital video editing tools, which are now sophisticated enough so that the
audio can be adjusted to compensate for any distortions that might occur as a result of doing that.
Now, Facebook has degraded the frequency with which this video now appears in people's news feeds, but it says it hasn't taken the video down because
it doesn't actually violate any of Facebook's community standards. Facebook has no rules on its platform, saying the content on there must be
true, which is why that video is still available.
CHATTERLEY: Oh, which is a fiery concept, quite frankly, propagating fake news. Talk to me about downgrading here for Facebook because my
understanding is the way that algorithms work. The more that gets watched, the higher the ranking goes. So if you're not willing to take this video
down, how do you lower the ranking here?
FUNG: That's right. So I've been speaking to independent fact checkers all day who have been looking at this video and this issue. And there are
a number of fact checkers who work with Facebook on how to evaluate content as it comes across Facebook's news feed.
And when these fact-checkers rate a particular piece of content as false, that then triggers a signal that automatically degrades or demotes this
content in the news feed.
CHATTERLEY: Yes, it's a tough one, isn't it? Brian Fung, thank you so much for that. All right, we're going to take a quick break, but up next, we
continue our coverage here from Westminster on the day Theresa May said she will resign, the fourth Conservative Prime Minister to be skewered by
Europe. QUEST MEANS BUSINESS continues after this.
[15:50:00] (COMMERCIAL BREAK)
CHATTERLEY: Welcome back to QUEST MEANS BUSINESS where we are in the last nine minutes of trade on Wall Street. As you can see, we've made gains of
some five-tenths of 1 percent, approximately rallying as you can see since 11:00 a.m. this morning.
A positive end to what's been an incredibly turbulent week I think for investors. Remember, it's a long weekend here in the United States and in
the U.K. too, so you have to remember volumes have been pretty light as well. Overall, pretty much nowhere fast despite the volatility that we've
seen and the concerns as investors have been slowly taking back some of the complacency and the optimism they had over the last two weeks about the
prospects for a trade deal as we were talking about, of course, earlier on in this show.
The fact that the president mentioned we could see a carve-out of Huawei as part of a bigger and broader trade deal here with China. The tech giant of
course currently on the U.S. trade blacklist which is what shook investors this week in particular Friday's trading on Wall Street.
As I mentioned, a bit thin ahead of the long holiday weekend. But we have managed to eke out gains. Of course, the big story as well today, and the
pound edged higher on it after British Prime Minister Theresa May announced she's bowing out of the job next month.
Sterling, of course, has dropped nearly 3 percent against the U.S. dollar this month. So we're still lying below that 128 figure. And of course, as
I mentioned earlier on in the show, we are down some 13 percent in sterling since that referendum. So a lot of bad news remaining in the price. Now,
a part of Europe or apart from Europe, that's the question Britain has struggled with for well, centuries.
But perhaps never more so than in the more than four decades since it joined the European community, now known of course as the EU, the European
Union. Theresa May is just the latest in the long line of Conservative Prime Ministers ultimately undone by this issue.
The U.K.'s first female Prime Minister Margaret Thatcher was forced to resign in 1990 amidst huge splits in her party over Europe and the
resignations of some of her top ministers. Her successor John Major suffered the indignity of being seen in Britain and being forced out of the
exchange rate mechanism.
That was back in 1992, a precursor to the single currency and vicious in- fighting over the Maastricht Treaty designed to further European integration. In 2016, David Cameron held that fateful referendum on
Britain's membership of the EU, resulting in the vote to leave the bloc and the end of his premiership.
Which brings us to Friday in Theresa May's announcement that she too will resign after failing to get her Brexit through parliament three times.
Phil Black looks back at her career and her leadership, overwhelmed by the still unresolved battle over Brexit.
MAY: So I am today announcing that I will resign as leader of the Conservative and Unionist Party on Friday, the 7th of June so that a
successor can be chosen.
PHIL BLACK, CNN CORRESPONDENT (voice-over): A moment so often predicted had finally come. Theresa May acknowledged she must step down.
MAY: We will lead --
BLACK: It marks the end of a Prime Minister notable for defiantly holding on to power, notorious for embracing short, repetitive slogans.
MAY: The strong and stable leadership. Strong and stable leadership. Strong and stable leadership and the strong and stable government.
BLACK: And both marked and grudgingly admired for displaying a baffling willingness to dance terribly in public. The self-styled dancing queen of
British politics is leaving the stage. Theresa May rose to become Prime Minister after her predecessor David Cameron found himself on the wrong
side of the Brexit referendum result.
[15:55:00] DAVID CAMERON, FORMER BRITISH PRIME MINISTER: I think the country requires fresh leadership to take it in this direction.
BLACK: May too had wanted Britain to remain in the European Union, but promised to deliver the people's verdict.
MAY: Brexit means Brexit, and we are going to make a success of it.
UNIDENTIFIED MALE: Yes --
BLACK: But what followed were stumbles and mistakes, none bigger than May's decision to call an unnecessary election in 2017. The result was
disastrous, May lost her party's parliamentary majority. Suddenly everything, especially Brexit became much harder.
The Conservative Party kept to its leader because there was no obvious alternative. And a contrite May was determined to carry on.
MAY: I hold my hands up for that, I take responsibility, I led the campaign and I am sorry.
BLACK: But it was during that same speech that things began to fall apart, literally. After being interrupted by a protester and struggling through a
coughing fit --
MAY: Our economy is back on track --
BLACK: The letters behind her started to drop off, one by one. At the time, many saw it as a powerful metaphor for her struggling leadership.
May clung on by promising all sides she could deliver a Brexit that would somehow keep everyone happy.
But her tactical contradictions were exposed at a crunch cabinet meeting at the Prime Minister's country residence Chequers. There she tried muscling
senior ministers into backing her preferred Brexit plan. But two of her government's most prominent hard-line Brexiteers announced they couldn't
stomach it and resigned.
Among them was Boris Johnson who quit as Foreign Secretary embracing a new role as the Prime Minister's chief critic on all things Brexit.
BORIS JOHNSON, FORMER BRITISH FOREIGN SECRETARY: Independent, self- governing Britain that is genuinely open to the world, not the miserable permanent limbo of Chequers.
BLACK: May also had to deal with difficult Brexit advice from America's president, who even backed Johnson as a potential successor.
TRUMP: Boris Johnson I think would be a great Prime Minister.
BLACK: Still May persisted, as key deadlines in the Brexit negotiations loomed.
MAY: Ninety five percent of withdrawal agreement as I said has been agreed.
BLACK: But the stickiest issue in the divorce settlement never changed, guaranteeing the Irish border stays open, while also ensuring the U.K.
sovereignty over its own territory. Ultimately, May's attempts to sell this and other Brexit puzzles failed to earn necessary support.
CHATTERLEY: And the Brexit battle will continue, but that's it for QUEST MEANS BUSINESS, Hala Gorani made a sharp exit due to the rain, but we both
wish you a lovely evening. "THE LEAD" with Jake Tapper starts right after this quick break. Thank you for watching.