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QUEST MEANS BUSINESS
One Cadet Killed, 22 Injured Near U.S. Military Academy; World Leaders Mark 75th Anniversary of D-Day Invasion; Fiat-Chrysler Blames France for its Abandoned Talks with Renault. Aired 3-4p ET
Aired June 6, 2019 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN INTERNATIONAL HOST, QUEST MEANS BUSINESS: An hour left to trade on Wall Street and by Juno, it could be another strong day. Look
at this, market has been up most of the day. We'll talk about that little spike later.
But again, a triple digit gain seems to be on the cards. Chevron is high up at the top at over two percent. Caterpillar is showing gains. The
majority of the Dow 30 was positive and in the green, those are the markets and these are the reasons why.
Donald Trump promising something dramatic with tariffs. He is doubling down on China. The ECB putting off its next rate rise until well into
2020. And Renault's shares sinking along with hopes for its merger with Fiat.
We are live in the world's financial capital, New York City. It is Thursday. It's the sixth of June. I'm Richard Quest. I mean, business.
Good evening. Tonight Donald Trump says his critics are clueless, and his tariff strategy cannot fail. The U.S. President is promising in his word,
dramatic results with Mexico and even more levies on China. All the while, trade talks are continuing in Washington with a Mexican delegation while
Mr. Trump is commemorating of course, D-Day in France. We will show you those pictures in just a moment.
The President now is spending the night at his golf resort in Ireland. He says the United States holds all the cards in the trade war.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: We're having a great talk with Mexico. We'll see what happens. But there's something pretty
dramatic that happened -- with Mexico, the tariffs go on and I mean it, too, and I'm very happy with it.
And a lot of people, senators included, they have no idea what they're talking about when it comes to tariffs. They have no -- absolutely no
idea. When you have the money, when you have the product, when you have the thing that everybody wants, you're in a position to do very well with
tariffs and that's where we are.
(END VIDEO CLIP)
QUEST: On the eve of the latest U.S. jobs number, a new report says a five percent tariff on all Mexican imports could cost the U.S. hundreds of
thousands of jobs, 400,000 is the number to be precise.
Nearly a third of these job losses would be in the state of Texas, contiguous of course to Mexico. It's according to the consultancy firm,
The Perryman Group.
And if that wasn't enough, never mind Mexico, China is still on Mr. Trump's agenda. He says a new round of tariffs against Beijing could be in place
(BEGIN VIDEO CLIP)
TRUMP: I will make that decision, I would say over the next two weeks, probably right after G-20. One way or the other, I'll make that decision
after the G-20. I'll be meeting with President Xi and we'll see what happens, but probably planning it sometime after G-20.
(END VIDEO CLIP)
QUEST: Carlos Gutierrez is the U.S. Commerce Secretary under President George W. Bush who joins me now. We've both been at this a while, Mr.
Secretary, neither of us can remember a time where tariffs has been used so much as part of an economic and commercial strategy.
CARLOS GUTIERREZ, FORMER U.S. COMMERCE SECRETARY: Well, and also a time when tariffs have been so misunderstood. You know, this idea that the
China pays the U.S. tariffs and the U.S. just banks that is just totally wrong.
What we're doing essentially is taxing the American public. We're taxing U.S. companies. What we just did with Mexico is a 5 percent tax on the
So ironically for a President who reduced taxes to get the economy going, he is essentially increasing taxes.
QUEST: The President says, the senators, the Republican senators who might try and stop this Mexico tax don't understand the tariffs. He says they
don't understand how they work, and they don't understand that the U.S. has all the cards. Is he right or wrong?
GUTIERREZ: Look in a trade war. I don't think anyone has all the cards. Both sides lose. Both sides lose jobs, both sides lose companies.
So to say you have all the cards to be able will put tariffs on incoming products, that's like saying you have all the cars to be able to increase
[15:05:05] QUEST: But there's a difference with the tariffs on Mexico, they are not linked directly to an economic purpose in the sense, unlike
with China. I mean, we can argue about the Chinese ones, but everybody agrees China has been cheating on trade. But this is linked to
GUTIERREZ: Yes, this is weaponizing tariffs in a way that we've never seen, and you know, it feels very political, Richard. This is being done
during a political season. I can see the President, in fact, making a case that this five percent is going to pay for his wall and it's going to
achieve the commitment he made to the American public to have Mexico pay for it.
He can't appropriate the money, but at least he can come across as boy did he try. I think this is very, very political, the way it was done so
abruptly. If we want to fix this problem, it can be fixed. But it's going to take negotiations, it's going to take setting up an infrastructure, and
that can't be done over a weekend.
QUEST: So I mean, you served a Republican President, Republicans, by and large, don't like tariffs. But I'm imagining you fully expect this five
percent to go on, on Monday. And I'm probably guessing you would not be surprised if 10, 15, 20 percent follows.
GUTIERREZ: Yes, I do expect the five percent to go on, on Monday. You've heard that there are a lot of Republican senators who are actively speaking
up about tariffs.
So the Congress can do something to limit the President's ability to raise tariffs. So you may see the five percent go up and the five percent stay
there because he can't increase the rest of the tariffs. We'll have to see how that plays out. But yes, I see the five percent coming into place.
QUEST: One other point, the change in policy by the U.S. on Cuba, suddenly banning people-to-people tourism, suddenly banning cruise ships. It was
sudden, it was abrupt. It wasn't telegraphed. Arguably, that is no way to make policy.
GUTIERREZ: Absolutely. And this is, Richard, this is domestic politics and domestic very much in Miami. But look, cruise lines weren't given
advance notice. They have signed up customers, they have paid docking fees. They're going to lose millions of dollars. And this is supposed to
be a pro-business administration. So I think it's just a terrible decision.
You know, American citizens can travel to any country in the world freely except for North Korea. Now it's North Korea and Cuba. There's no common
sense into that, and we've been doing this now for 60 years, Richard. So you know, we're working in the 60s.
QUEST: All right, can I just ask you. You were in government and you have been around in government for a while. When you were in -- when you were
Commerce Secretary and when you had been in administrations, can you recall a time when there have been so much discussion about tariffs? Where the
bilateral use of tariffs, other than for minor, individual, specific aspects has ever been before?
GUTIERREZ: Never, never. And frankly, if we had an interagency process that works, all of the deputies and all of the Cabinet members would have
killed the tariffs because it's a bad idea.
But these are decisions that are being made in the Oval Office, and really not taking into account the interagency process to inform the President.
But I have never seen this before. I guess you'd have to go back to Smoot- Hawley.
QUEST: Smoot-Hawley and we know how that ended.
GUTIERREZ: That's right.
QUEST: Sir, Mr. Secretary, it is always a pleasure and a privilege to have you. I'm grateful that you've given us time. Thank you.
GUTIERREZ: Thank you, Richard.
QUEST: Now to Huawei. Well, shunned by Washington and embraced by Moscow. The telecoms giant has signed a deal to develop a 5G network in Russia.
Fred Pleitgen is in Saint Petersburg. I don't understand this, Fred. I mean, the Russians surely have no wish to give the Chinese a backdoor into
their telecoms and, you know, spying capability. And if Huawei is as bad as the Trump administration, and the U.S. security says, why would the
Russians do this?
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think one of the reasons, Richard, one of the main reasons is probably the good
relationship between Vladimir Putin and Xi Jinping who is obviously in Russia right now and the two have said about each other, at least, Xi said
that Vladimir Putin is his best friend, and that the relationship that they have is a relationship of trust.
And certainly, one could imagine that if the Russians do this deal that they would have thought about the security implications for this as well.
[15:10:05] PLEITGEN: It was quite interesting because I was actually able to speak to the CEO of the Russian telecoms company that's on the other
side of this deal and he claims all of this is not political. Let's listen to what he had to say.
(BEGIN VIDEO CLIP)
ALEXEY KORNYA, CEO, MTS: I think here is, we are the agnostic in terms of, you know, some political agenda. We are now thinking about 5G development.
I think it's extremely important that provides additional comfort and security, because we can see and we don't want to be our service and our
products being hostages of any political decisions or solutions, so in this sense, we are trying to be as neutral as it is possible.
(END VIDEO CLIP)
QUEST: We seem to have just lost Fred Pleitgen there, which is a shame, but we'll come back to him if and when we manage to establish contact with
It's a day for reflection on these grand alliances between nations, and a chance to consider what they really mean. Seventy five years ago today,
Allied soldiers were fighting, and many were dying to save freedom.
It was the largest seaborne invasion in history, and it would signal the beginning of the end of the Second World War. It would change the world,
your world, our world. It was of course, D-Day.
Allied soldiers from across the United States, Britain and Canada risked everything to storm the beaches of Normandy and France, to drive the Nazis
out and to liberate Western Europe.
(BEGIN VIDEO CLIP)
VERN OLLAR, 81ST CHEMICAL MORTAR BATALLION: I always get a little lump in my throat as all of those guys. We were almost 2,000 D-Day, just in Omaha,
18, 19, 21-year-old guys. It makes me -- I get choked up.
(END VIDEO CLIP)
QUEST: Many hours ago, many of the most powerful people on earth gathered to pay tribute to the bravest and what's now known as the greatest
Each of the leaders spoke of sacrifice, the sacrifice of two million soldiers who fought in Normandy, and the bonds that the countries forged at
that time and share to this day.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, FRENCH PRESIDENT: We know what we owe, to you, veterans, our freedom. On behalf of my nation, I just want to say thank you.
TRUMP: The more than 107 veterans of the Second World War, to join us today, you are among the very greatest Americans who will ever live.
ELIZABETH II, QUEEN OF GREAT BRITAIN: It is with humility and pleasure on behalf of the entire country, indeed, the whole free world that I say to
you all, thank you.
(END VIDEO CLIP)
QUEST: Called the greatest Americans who will ever live by the President. Indeed, there may never be another generation or a Memorial quite like
There were 173 American World War II veterans in attendance. Back then, they were the young men, full of fear, but determined to fight evil. Lest
[15:16:37] QUEST: All markets are in the green, and that will continue the week's gains. Bearing in mind two days ago, we were up 500; yesterday, it
was 200. It was a very strong last minute rally within the last hour of trade.
Now, today we are up 160 points. You've got this interesting little spike over here, which came about after Bloomberg reported -- the news agency --
that the U.S. is considering delaying American tariffs.
Well, that doesn't appear to be the case. That's not exactly what's happening. But the market liked it. It liked the prospect of it. So it's
held on to those particular gains.
As for the week overall, well, the Dow is up over 700 points and the S&P is up almost three percent and the NASDAQ is up some 1.6 percent, all of which
makes for a strong break, if you like to the losing streak of the market.
With trade wars looming over the global economy, Central Banks are bracing for a slowdown. And look at the telltale sign of interest rates.
Now, we've had a variety of factors today. First of all, we've got the European Central Bank, Mario Draghi, the outgoing President of the bank,
taking a dovish stance. The governing Council saying it will leave rates at their record lows until mid-2020.
There have been thoughts that the forward guidance would only go to the end of this year. But now it is one of the only tools left really that they've
got that they can quickly and easily use. Forward guidance through until the mid of next year.
And also don't forget, they have got this long-term refinancing operation. Cheap money being given to banks that want them.
The Fed has already signaled it may need to cut rates to adjust inflation, no definite word on that. So in fact, the next person I was talking to,
Alicia Levin thinks there could be four rate cuts, two this year and two next.
And then the Reserve Bank of India. They just cut rates the third time this year. India's slow growth hits the lowest level since 2017.
So I was joined by the Chief Strategist at BNY Mellon, Alicia Levine, she got right to the point about markets, the Fed and trade, the market is up.
(BEGIN VIDEO CLIP)
ALICIA LEVINE, CHIEF STRATEGIST, BNY MELLON: Right now the market is beholden to policy choices. Policy choices by the administration and
policy choices by the Fed. And because of that we're sort of in a range because we cannot properly estimate earnings going forward based on what's
going to happen with trade.
QUEST: So on the Fed side, the Chair has indicated certainly no rate rises, but there could be cuts. Are you expecting cuts? Or your
economists expecting cuts?
LEVINE: I'll say this, the market is expecting four cuts by the end of 2020. And we've --
LEVINE: Four. Two this year and two next year, which is actually quite extraordinary for an economy that's growing two to two and a half percent a
year. So you have to ask yourself, why does the bond market see this? And why is the bond market trying to force a cut?
And ultimately, it's because the fear is that slowing global growth and the trade rhetoric and the trade war is going to heat up and curtail growth
here in America.
QUEST: Let's take a slowing growth. I still don't fully understand why growth is slow. I mean, if you put aside the trade tensions for the
moment. I mean, it's a mature cycle.
[15:20:06] QUEST: We are 11, 12, or whatever it is, but the speed with which we've suddenly seen this global slowdown it is starting to get
LEVINE: Right. So the hope for the beginning of the year, was that China's stimulus was going to kick in, by now by the second quarter, we'd
seen green shoots in China, which then would translate to green shoots in Europe. And that would stabilize the global economy, and that the U.S.
multinationals would piggyback on that and we can increase earnings going forward.
And that was narrative for the second half of the year, and part of the reason why the market rallied in the first quarter, because it looked like
China's stimulus was successful. And that's what it looked like in March and April.
It turns out, perhaps not. So the data has fallen off. And in particular, the manufacturing side, and the expectation side, and the order side has
fallen off a cliff, with the ratcheting up of trade rhetoric.
QUEST: Do you -- the "R" word, recession. I mean, and I accept, there's very little difference if you grow two tenths of a percent versus minus two
tenths. I get it. One and two and a half a percent, it really feels like a recession anyway. But do you think that'll be a technical recession?
LEVINE: We don't think there's a recession here in the U.S., okay. We think that the economy strong enough. And don't forget, we're coming off
the year that was almost three percent last year, we're not going down to one percent by the end of the year.
(END VIDEO CLIP)
QUEST: So European stocks had earlier gains to end Thursday mix after the European Central Bank said it would keep interest rates unchanged for the
first half of 2020. The London index held up, in fact, it put on half a percent.
The Chief Executive of KLM says his airline is only just recovering. Earlier this year, a bout of tug of war broke out between the French and
Dutch governments over ownership of Air France KLM.
We remember, of course, the Dutch government bought a stake in the combined airline to match that being held by their French counterpart.
Now the CEO of KLM told me things are calm even if the situation is unorthodox.
(BEGIN VIDEO CLIP)
PIETER ELBERS, CEO, KLM: We have had a turbulent time, we had a rough flight, if you wish in aviation terms, things have calmed down. Now, we
have stability, we look to get into the business, which is very important to do. There's a lot of challenges with rising fuel costs and all kinds of
QUEST: Now, Pieter, I realize you can brush this off as it's beyond your pay grade. And it goes up to the Prime Minister and the Minister of this
stuff. But you've got to agree. It's extraordinary when a government comes in, buys a large stake in an airline, a publicly traded airline to
match the stakes held by another government.
QUEST: This is not normal.
ELBERS: Our Minister of Finance has called it unorthodox move, and I think that's a perfect summary. We don't see this very often. The Dutch state
took the step in order to show their commitment to the group, in order to show their commitment to the long-term relevance of KLM and its hub
operation in Amsterdam.
And with that, there's -- as you rightfully associate their speech, we move forward, though.
QUEST: Right. But the effect of that is to create an equality, and as was seen by the Dutch government, now that I assume translates into new routes,
new capital allocations, and all of those, are you comfortable with the current position?
ELBERS: Well, yes, I think again, what is important now is there's a stability, there's a working group between the French government and the
Dutch government or some of the government's issue. We have stability to focus on our business.
Again, there's a new management team running the group. And with that, we move forward and we focus on our business.
(END VIDEO CLIP)
QUEST: Pieter Elbers of KLM. The airline is celebrating a century of flying this year. On QUEST MEANS BUSINESS, we're always taking a look at
companies who have achieved that rarefied status of being part of the Hundred Club, a century of business.
And on this anniversary of D-Day, we're featuring Hershey. Many of the men who stormed the beaches of Normandy carried special Hershey bars with them.
Now, these bars, these chocolate bars were developed to withstand heat, and packed enough calories to help sustain the fight against Hitler's forces.
Cyril Vanier has more on Hershey's.
MICHELLE BUCK, CEO, THE HERSHEY COMPANY: Whether it's Hershey's or Reese's or Kit Kat or your Peppermint Patty, everybody has a special memory, a
moment that they remember that involved one of our great friends.
When you talk to consumers, we're at the top of the most loved brands list, along with Netflix, Apple, Amazon, Hershey.
A brand that's been around for 125 years right up there with the most contemporary brands that are in the marketplace today.
CYRIL VANIER, CNN ANCHOR (voice over): Beloved by most for their chocolate, The Hershey Company was originally created by Milton Hershey in
1894 as a subsidiary of the Lancaster Caramel Company.
VALERIE SEIBER, HISTORIAN, THE HERSHEY STORY: When he is making caramels, he is making lots of different varieties, but he is also starting to think
about kind of the next stage of his business as well.
[15:25:11] SEIBER: And he thinks it's in chocolate.
VANIER: While production began on the Hershey bar in 1900, another quintessential company treat didn't make its debut until seven years later,
The demand for these foil-wrapped treats hasn't waned since. 15.1 billion Kisses are made every year worldwide, and they're still one of the primary
chocolates made at the company's headquarters in Hershey, Pennsylvania. The factory here makes 72 million Kisses a day.
(END VIDEO CLIP)
QUEST: And you can see Cyril Vanier's special report on the Hundred Club on Saturday at 9:30 London, 4:30 in the afternoon in New York. You may
want to know why we don't have any Hershey Kisses here for me today. I have eaten a lot.
When we come back, Fiat and Renault will not be emerging. The French government said no. But why? In a moment.
QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. As we continue this evening, this is CNN, and on this
network the facts always come first.
The African Union has suspended Sudan after a deadly crackdown on protesters. It is demanding the country's military leaders hand over power
to civilians. Dozens of protesters were killed in Khartoum on Monday when the Security Forces stormed the pro-democracy city.
One cadet is dead after an accident at the U.S. Military Academy in West Point in New York. Twenty cadets and two soldiers were also injured.
[15:30:00] The accident involved a military tactical vehicle and happened near a training site, an investigation, of course, is under way. World
leaders and surviving veterans of World War II have gathered in Normandy in France to mark the 75th anniversary of D-Day.
The French President Emmanuel Macron and President Donald Trump paid tribute to the heroes who changed history. And President Macron said
France will never forget the enduring legacy of those who fought and died for freedom.
So, 75 years ago today, thousands, tens of thousands of men embarked on a mission to the beaches of France and that changed the course of history.
It was D-Day.
JIM BITTERMANN, CNN SENIOR EUROPEAN CORRESPONDENT (voice-over): Once a battlefield, now a memorial for the fallen. It was on the beaches and
hills around Normandy that American and allied troops launched a major assault on Nazi forces marking the start of a D-Day campaign.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: On this day, 75 years ago, 10,000 men shed their blood and thousands sacrificed their lives for their
brothers, for their countries, and for the survival of liberty.
BITTERMANN: A small number of those who survived the war returned to France today. Some had not been back since the war. It was a chance for
TRUMP: You honor us all with your presence.
BITTERMANN: The D-Day campaign changed the course of the war. French President Emmanuel Macron says it's a sacrifice his country will never
EMMANUEL MACRON, PRESIDENT, FRANCE: We know what we owe to you, veterans. Our freedom. On behalf of my nation, I just want to say thank you.
BITTERMANN: Standing side-by-side, the two leaders paused for a moment of silence. A wreath honoring the fallen. From there, the president and
first lady walked to a point overlooking Omaha Beach, the deadliest battlefield for allied forces during the D-Day invasion. Our military
flyover marking the end of the commemorations.
And away from the crowds, Presidents Trump and Macron along with their wives walked through the fields of white crosses, each marking a life lost.
One final moment of pause and reflection. Jim Bittermann, CNN, Normandy.
QUEST: Melissa Bell is with us from Normandy and joins me now. Melissa, you're in calm waters at sea, but it must be giving you an idea of -- in
some shape or form, what it must have been like to have to face that beach and know you're going into hell.
MELISSA BELL, CNN CORRESPONDENT: That's right, Richard, I just like to show you these are the Normandy beaches. This is what all those young men
were facing that night, 75 years ago. It was the middle of the night between the night of the fifth and the sixth, as they came on these beaches
and stormed them.
We now know that of course, all the bombardments that were meant to have taken out the army in positions had essentially left them relatively intact
and all these young men -- this is Gold Beach they were landing on, where the British landed. Omaha is to my right, Juneau to my left, so many of
these young men were facing their certain death because the enemy positions were relatively intact.
We're on an amphibious truck, this is in fact a truck, we're on the ocean, Richard, but have a look, these were invented in 1941 and they were
absolutely crucial. Have a look at this, it was this piece of engineering that allowed not that free wave of young men to make it to the shores, but
what was necessary for them to succeed in their mission.
The -- bringing of supplies, the gasoline, the food that was necessary for the operation. The second wave of those supplies that was just necessary,
it was. I mean, to make you very jealous now, we're going to storm that beach together, Richard, have a look. This is how it happened.
These were the very trucks that brought those supplies on to the Normandy beaches 75 years ago and allowed that victory to be secure. The victory
that we've been hearing about all day today, extremely poignant moments as those final two veterans all now in their 90s came to remember those
comrades who fell, all of those heads of state who came to remember the peace that was built on the back of that beach, Richard.
[15:35:00] QUEST: What does it feel like? What does that -- what does that -- I mean, you know, we've heard about it, we've lived it in the sense
of our parents and our grandparents who have told us about it. My parents are of the second generation war age and they were evacuated from parts of
England. What does it feel like to be there and go through that?
BELL: Richard, we're going to head back out to the ocean now. I just want you to come with us without running anyone over at this point. We're going
to head back into the water. I just like you to appreciate with me this extraordinary piece of technology, 75 years old and these things are
still already -- what we've seen today were extraordinary scenes.
Not only the veterans who managed to come here, those who are in their 90s now and they still survived, some of them in their 100s. But the very many
younger people who came just to appreciate those sacrifices that had been made. It had been -- it was an extraordinary day today, probably the last
significant anniversary of D-Day that we will have with anyone who is still alive to be able to talk about precisely what they felt, precisely what
happened and precisely those sacrifices that were made, Richard.
QUEST: You know, it's interesting what you're saying there Melissa, because I was listening today and I was reading over the weekend, many of
those who died, literally died when they jumped off the ships. They had so much --
BELL: Exactly --
QUEST: Gear, they had so much food, they had so much clothing, and the boats weren't that close and the water was too deep and they perished and
died where they jumped.
BELL: Exactly right. This was an operation that was so ambitious. None has ever been mounted like it since, none had ever been attempted before.
And what you refer to though there, Richard, are those very many thousands of men who arrived on all of these beaches and in particular, the Omaha
Beach where the Americans -- and which is essentially a bunch of dunes and of troughs that go up into the ocean -- they arrived in the middle of the
What we're seeing here is still daylight, so it's very different. It was raining, it was in the middle of the night. These boats arrived to deposit
them on the ocean, they didn't realize that they hadn't quite arrived at shore. You were quite right, all of these men, 18, 19, 20-year-old
American, Brits, Canadians, who had no idea about France and about where they were landing were deposited in the ocean.
Many of them to drown under the weight of what they were carrying. So many thousands were lost, even before they could reach the shore. And actually,
we're talking about children. Then those that did make it, although that first wave, they landed especially on Omaha Beach, bloody in all, that's
how deadly it was.
It came to be known as that 90 percent of the men that landed in that first wave died. And again, we're talking about the youngest of men. They were
so young, Richard, those that then continued, we've been paying our respects over the course of the last few days to these veterans who have
turned up. We were yesterday in a part of Normandy, it is just behind these beaches, (INAUDIBLE) the 101st Airborne Division.
QUEST: Right --
BELL: These were the parachuters who came in, and for several days, having landed in enemy territory in the middle of the night being shot down in the
rain. Then had to fight their way out. They were isolated, they were dispersed, Richard. They spent several days fighting enemy positions,
It was with their bayonets that they eventually fought their way out, liberating that crucial point that allowed all of these beaches to be
connected, to be linked. And that was one of the crucial victories. We celebrated that yesterday, there were about 40 veterans of the 101st
Airborne Division of the U.S. Army, those that could stood when the Star Spangled Banner was played, when Taps was played, it was an extraordinary
There are so few of them left who really understand the sacrifices that were made on that day, Richard.
QUEST: Melissa Bell in Normandy, thank you. Lest we forget.
[15:40:00] (COMMERCIAL BREAK)
QUEST: The numbers tell the story. Fiat-Chrysler virtually unchanged. Shares in Renault sinking fast after Fiat-Chrysler cancelled the merger
offer that they put together just a couple of weeks earlier. And in doing so, they're blaming the politics of France.
Remember, France owns 15 percent of Renault and they wanted to delay the vote. The problem was there were numerous road blocks on the way to try
and get this done. It all seems so easy, but there were two particular road blocks, and they are both on the French side.
First, the French are worried about job cuts that could come as a result of the merger. Powerful French unions came out against the deal. Scared that
from the GEs from deals just a few years ago. Now last week, GE cut another thousand French jobs. And then there are international
relationships the French government had to consider.
Remember, Renault is already a part of a powerful alliance with Nissan of Japan. And that partnership has been fragile ever since the arrest and
downfall of its creator Carlos Ghosn. Now, the issue was Nissan wasn't happy about Fiat. Renault and everybody wanted more time to think about
Fiat-Chrysler said, hang on, we're off. The car coach is Lauren Fix and she's in Buffalo, New York. Are you surprised that this fell apart so
quickly? That the French government wasn't able to put it together or at least get the time necessary.
LAUREN FIX, CAR COACH: I think initially, we were all shocked that John Elkann was going to make this decision to create some type of merger. We
knew that there had been other people that had shown interest in working or partnering with Fiat-Chrysler, but to join the Renault, Mitsubishi, Nissan
merger was kind of an interesting choice, I would say.
But when the French government is involved in the area of 15 percent and they have a seat at the table, you know they want more and they certainly
don't want to lose jobs. But then here, Fiat-Chrysler, we don't want to be closing plants either. That could be very bad for the U.S.
QUEST: Right, but the speed with which Elkann and Fiat-Chrysler decided to pull up sticks and go. I mean, you know, they basically -- there was only
a couple of rounds of negotiations, and then when they didn't get their way, they sort of said, well, we'll see you. And in fact, the statement
put out was very tepid and tart in terms of criticizing the French --
FIX: Yes, there were certainly subtext in that statement, and then John Elkann who is the owner of the Fiat-Chrysler Corporation, most of the
stock, sent a letter to the employees saying that they have tried their best to make a merger and a partnership, but it seems like it's not going
to work. And when things aren't going to work, we just close the door. So basically, they've already closed the door because you have to remember,
this is to go for a vote with other companies --
QUEST: Right --
FIX: And Nissan abstained from voting because they're still dealing with the Carlos Ghosn situation, and that -- we still don't know the real facts
behind it. We just keep hearing a lot of leaks of information --
[15:45:00] QUEST: Right --
FIX: But I have a sinking feeling that it was just a coup.
QUEST: So what happens to Renault? Does it need Fiat-Chrysler? More to the point, does Fiat-Chrysler come back, say for Peugeot or somebody else or
does everybody just go home and lick their wounds?
FIX: I think they might go home and lick their wounds, but I think Renault needs Fiat more than Fiat needs Renault. And it was an interesting
partnership choice to begin with. Together, they would have created the third largest car corporation in the world. And that's huge, but
unfortunately Fiat-Chrysler doesn't sell a lot of vehicles in Europe -- these Chrysler products, but Renault doesn't sell here in the U.S.
So, they were hoping to do some sort of partnership. I don't think it was a good merger. I think you're going to find an outsider possibly looking
to invest in the Fiat-Chrysler, maybe somebody --
QUEST: Right --
FIX: From the Middle East possibly, we'll just leave it --
QUEST: Oh --
FIX: At that. But I do know some information that there's been a lot of discussion --
QUEST: Please, you're teasing us, you're teasing us --
FIX: I know --
QUEST: Shamelessly, and that's a subject for another day. Lauren, good to see you, thank you very much --
FIX: Yes --
QUEST: On that particular story.
FIX: Thank you, Richard --
QUEST: Let's stay with automobiles, Tesla is launching a long-range version of its sedan. Now, this particular car can travel 600 kilometers
or 370 miles, and it does so on a single charge. As CNN's Peter Valdes was one of the first journalist to get behind the wheel. He drove the car 900
miles from New York to Atlanta, it's a straight run down there, charging it only three times.
We now of course, Peter and the Tesla joins us now. Were you on your own enjoying this trip or did you have -- did you have company for this trip?
PETER VALDES-DAPENA, CNN BUSINESS SENIOR AUTO WRITER: I had a bit of company. I had a still photographer David Williams with me to sort of
product with the trip as we were going along. But I did do all the driving, and to answer your earlier question, I controlled the music the
QUEST: All right, so two things, first of all, did you ever get collywobbles and thinking, hang on, we could run out of power here, I'm a
bit worried even though I know this charging stations, I'm concerned.
VALDES-DAPENA: Actually, it's really interesting because the last time I tried a long distance drive like this back in 2013, I did get very worried,
getting from Washington D.C. to Connecticut, I was quite concerned, I was on the phone with Tesla engineers trying to figure out what to do. Finally
made it to a charger with 40 miles of range left.
This time, an on board computer was telling me -- onboard navigation was telling me where to go to get to the charger, when I was going to get
there. I did make it with only 17 miles remaining. But psychologically, I was much less concerned. I wasn't worried because I could watch that
process happening in the car as I was going.
It was obviously, the numbers weren't changing very much. It was clear that I was going to make it which I think is maybe a more important thing
than just the range itself, it's the psychological comfort now that these computer systems give you of knowing how far you can stretch it.
QUEST: But what if you get a road block? What if a road block suddenly is in your way, and there's an accident, God forbid and suddenly, you can't
get past and you're stuck for the foreseeable. Now, what happens -- of course, that could happen with a car with a petrol engine, a combustion
engine, but there's usually a garage closer by and you can always borrow some petrol from somebody in a tank -- in a gas tank.
VALDES-DAPENA: Yes, you can always have Triple A come out and give you a gallon of gasoline if you really get stuck, yes. That could still be a
problem. You do have less flexibility. There are a lot of Tesla charger stations -- charging stations, but they're probably going to be less
frequent than a gas station.
So yes, if something crazy or unpredictable happens, that's an issue. Another issue is --
QUEST: Right --
VALDES-DAPENA: On a road trip, if you want to be a little more flexible and say, hey, you know, I want to take a little side trip for a while. You
can do that in a gasoline car, with an electric car, even one like this, you still might not have that kind of flexibility.
QUEST: What was it, Heavy Metal, Madonna, disco hits of the 1980s? What were you playing?
VALDES-DAPENA: Oh, no, I was playing like electro-dance music. Electronic dance music.
QUEST: I would pay good money to see Peter Valdes-Dapena --
VALDES-DAPENA: Very nice to drive too --
QUEST: Listening to electric dance music driving that. Good to see you, Peter, thank you very much indeed. Right, well, the U.S. President engaged
in a high level diplomacy, his sons were on a pub crawl in Ireland. The business owners who got the surprise of their careers when the Trumps
arrived. This is QUEST MEANS BUSINESS live from New York.
[15:50:00] (COMMERCIAL BREAK)
QUEST: The Trump family visit to the west of Ireland was certainly good business for the pubs of Doonbeg. The president's two adult sons, Don Jr.
and Eric (INAUDIBLE) through the down the streets from their dad's golf club to raise a few pints with the locals. CNN's Nic Robertson has
retraced their steps.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice-over): Eric and Don Jr. Trump dropping in to their dad's local.
UNIDENTIFIED MALE: (INAUDIBLE). What are we cheering to?
ROBERTSON: A few minutes from his Doonbeg Golf Resort, lapping up the love.
UNIDENTIFIED FEMALE: How is it in Ireland?
DONALD TRUMP JR., SON OF DONALD TRUMP: Great, always great to be back here. Thank you guys, thank you so much. I appreciate it, I love seeing
all the support coming in today, it's incredible.
ROBERTSON: It became a pub crawl. Tommy Comerford's bar next.
TOMMY COMERFORD, OWNER, COMERFORD PUB: Well, it was a big shock, we really didn't expect it.
ROBERTSON (on camera): Really?
COMERFORD: Suddenly, this entourage came in the door and media, lights, flashlights.
ROBERTSON (voice-over): The whole town near enough came out.
TRUMP: It's everything, right?
RITA MCINERNEY, OWNER, ATLANTIC WAVE CAFE: So it's like counting final night. That's how it reminded me, yes --
ROBERTSON (on camera): Really, like a big sporting? Yes --
MCINERNEY: Yes, it did. It just reminded me of kind of the team coming home, visiting all the pubs with a cup and yes, that's what it kind of
reminded me of.
ROBERTSON (voice-over): Rita McInerney runs a cafe in this tiny village, population, 341 last census. Folks here put the flag out for Trump a few
days ago, but support for the American president began a ways back when he bought the failing Doonbeg Golf Resort in 2014, saving local jobs.
MCINERNEY: For me, like it's putting my niece and nephews through college, they both worked there. And it's this great spinoff for me in the cafe and
I own a grocery stores there, so it's a great spinoff. And as well as the guests --
ROBERTSON (on camera): It's keeping your family going.
MCINERNEY: Yes, the 310 people that are working there as well, they spend the local economy as well.
ROBERTSON (voice-over): Up and down this main street, Trump is a success story. Ask Tommy Comerford, his family have owned this bar for 4
COMERFORD: Donald Trump took it over before he was president, people said, oh, he'd forget about the village. No, he didn't. He actually added and
he has enhanced it.
ROBERTSON (on camera): Could you keep your pub going if there wasn't a Trump Resort?
COMERFORD: Oh, no hope, no hope.
[15:55:00] ROBERTSON (voice-over): It's not to say everyone here is a fan. Don Jr. and Eric missed the handful of protesters who did come out,
but of all the special relationships Donald Trump is courting in Europe, Doonbeg is perhaps his biggest success. With the people of this village
paying the president back in the way that he likes with their loyalty. Nic Robertson, CNN, Doonbeg, Ireland.
QUEST: As we head to the closing bell in just a few moments from now, well, we are off the best of the day -- well, I was up here, so we're
giving back about 20, 30 odd points, at 189 now. The board hasn't really changed much. But interesting to note, the Dow is now on track to stop a
six-week losing streak and the senior U.S. official telling us or so or at least saying that Mexico talks are heading in a positive direction.
Tech stocks are recovering some ground, the tech regulatory issues remain in the spotlight. Very small losses for those that are negative, and some
large gains for those that are positive with Chevron coming up the best of the day, up some 3 percent. Put it all together, and we will have our
profitable moment after the break.
QUEST: Tonight's profitable moment. I've listened very carefully to what President Trump says when he talks about tariffs. And it's always roughly
the same thing. It's always about the opportunity to bring in more money. It's always about, we've got all the cards, people will want what we've
got, we can sell more.
The problem is, that's the mentality of the small shopkeeper. It is the mentality of the businessmen who sees tariffs as a revenue raiser. And
time and again, he's told us how many billions have come into the Treasury and how magnificent this all is.
Completely forgetting, of course, its U.S. consumers who are paying those billions and it's hurting the economy on the way. Just listen to what he
was talking about today with Mexico's 5 percent tariffs, again, this is going to be great bringing more money in.
I'm telling you, it's the mentality of the small shopkeeper that sees purely on the revenue side. Ultimately though, there will be far more
serious consequences if 400,000 jobs go, a 100,000 in Texas. And the -- what growth there is in the U.S. economy dwindles to just about nothing.
And that is QUEST MEANS BUSINESS for tonight, I am Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it is profitable.
The Dow is up, the bell is ringing, the day is done!