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QUEST MEANS BUSINESS
American KKR Offers to Buy German Publisher Axel Springer; President Trump and Polish President Agree to Strengthen Security Cooperation; Seventy Two Injured in Hong Kong Clashes; President Trump Holds Joint News Conference With Polish President; At Least 72 People Have Been Taken To Hospital After A Shocking Day Of Violent Protests in Hong Kong; Nintendo's Billion Dollar Delay. Aired: 3-4p ET
Aired June 12, 2019 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDRZEJ DUDA, PRESIDENT OF POLAND (through translator): ... although 30 years have passed, they have got influence, the influence which they were
building after 1989, where they assumed a new identity of an elite, of a new state.
So this influence is still strong. This is what I can say, and let me assure you of one thing, that freedom of speech is absolutely respected in
Poland. Poland absolutely respects all constitutional standards, just as in the United States, the right to assemble, the right to the freedom of
speech. There is free media in Poland. There is everything that is functioning in a normal democracy.
One can announce what they think, one can demonstrate, one can say what they think. In Poland, people are not attacked during demonstrations as it
happens in other Western European country.
Police do not use truncheons or tear gas against people. People can speak their mind. They can express that they're not pleased with something.
This is their right in democracy. Please ask Polish journalists, when was the last time -- when was the last demonstration in Poland when some kind
of tension happened? No, it didn't.
Because in Poland, we respect the right to demonstrate and to express your concern because we believe that this is one of the foundations of
In Poland, there is absolutely free and just elections. All the standards are respected. So please, ladies and gentlemen, come to Poland and see
Poland with your own eyes. Please do not repeat certain stereotypes that are repeated in the West.
Poland today has got quite a conservative government. That is true. And this government has got certain standards of action. Nobody -- not
everybody subscribes to those standards, especially people of more leftist views. But this is the nature of democracy.
So whence you got one side of the political scene in power, and then people make a different choice, and another side of the political stage comes to
power, there is nothing extraordinary about that. And this is the change that has happening in Poland.
But when somebody wins the elections, they have the right to implement the program, which they announced before the elections, excuse me -- however,
realize that implementing the program which you presented in your election campaign is not only the right, but I think an obligation resting on a
politician and this is exactly what is happening in Poland.
QUESTION: A question for both Presidents. Mr. President, you said just a moment ago that Poland will join the Visa Waiver Program soon. How soon?
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES: We think fairly soon. We're doing very well with it. It's a complex situation, as you know, but
we're getting very close. We allow very few countries to join. But Poland is one that we are thinking about allowing in, so we'll be making that
decision over the next, probably 90 days.
QUESTION: Sir, will you hope or do you think that maybe when you're in Poland in September, you will make the announcement?
TRUMP: I think it's a very good idea. Thank you very much for giving me that idea.
QUESTION: Thank you, Mr. President. Mr. President, the Visa Waiver Program appeared on many occasions, but then it did not come into practice.
How optimistic are we about the words uttered right now by President Donald Trump?
DUDA (through translator): I'm looking at these words optimistic. I'm optimistic about that, because I think this is the first U.S.
administration which has treated this problem in such a serious way and in such a comprehensive way. So both.
When we talk with Mr. President, the President expresses his deep care about that. Also, when I talk with Miss Mosbacher, the U.S. Ambassador to
Warsaw, she looks at the problem all the time, and I firmly believe that in accordance with the law binding the United States, because this is
something that I want to stress very strongly.
According to the law binding in the United States, by all the actions which are necessary in those respect, such as today's signing of the agreement on
preventing and committing serious crimes. I believe that through all these sanctions, this Visa Waiver Program covering Pols with Visa Waiver Program
is going to be possible soon, anyway, that it is going to be possible before the end of the first term of President Donald Trump.
TRUMP: Thank you very much. Thank you very much.
DUDA: Thank you very much. Thank you.
ZAIN ASHER, CNN INTERNATIONAL ANCHOR: All right. You've just been watching a wide ranging press conference between President Donald Trump and
the Polish President Andrzej Duda. I think one of the major headlines to come out of this particular press conference is the fact that the United
States is going to be moving 1,000 American troops from Germany to Poland. One thousand American troops from Germany to Poland.
President Donald Trump has criticized Germany heavily for not paying enough into NATO. Other topics that came up during that press conference is of
course, the trade war with China, also the fact that the President did receive a letter from Kim Jong-un, one person asked whether that meant that
there was going to be a third Summit between North Korea and the United States.
The President hesitates on that. But the Polish President was pressed quite a bit on the authoritarian climate in Poland given that Poland has
been forcing Supreme Court justices to retire early.
I want to bring in Stephen Collison who is at our Washington bureau. Stephen just walk us through the key headlines from that conference.
[15:05:10] STEPHEN COLLINSON, CNN WHITE HOUSE REPORTER: Zain, I think it was very interesting that the President used one NATO ally, Poland to take
a shot at another one. Germany.
You mentioned that he just announced he would send a thousand U.S. troops to be permanently stationed in Poland. That is an evolution of U.S.
policy. Previously, troops were rotated through Poland. And this is clearly a sign that the U.S. is leaning very hard on those NATO states,
which are reaching their commitment to spend two percent of their GDP on defense. Poland is of course, and Germany isn't.
So this was, again, the Trump administration allying self very forcibly with some of those nationalist Eastern European countries that have been
criticized, as you say, for their behavior on human rights and democracy, but have been very, very open to President Trump's ideology and have
treated President Trump very well.
He referred to his trip to Poland in 2017, when he was flattered very much by the Polish government who have shown you know, quite a smart approach to
dealing with this President and today, you see it yielded results. And earlier, of course, we saw the White House, a flyover of an F-35 jet.
Poland is also putting in an order for those U.S. warplanes.
ASHER: So how has the relationship between United States and Poland evolve, Stephen since President Donald Trump took over?
COLLINSON; Well, as I said, the President traveled to Poland, one of his earliest foreign trips, and he gave a speech which was warmly received in
Poland, but which was a real critique of the European Union, especially on issues like immigration, and the immigration policies implicitly, of German
Chancellor Angela Merkel. The Pols are much more in tune with President Trump's rhetoric on borders and immigration.
So the President got a very good reception there. The Pols are always -- not just in the Trump administration, but in the Obama administration, and
back to the Bush administration trying to tighten their defense links with the United States with an eye on Russia.
And it's actually very interesting, because we have this almost bipolar relationship between the Trump administration and Russia, the
administration takes a lot of steps strategically, that appear to be bolstering the U.S. and NATO position towards Russia. At the same time,
you have the President has this very deferential relationship to President Vladimir Putin.
Today, for example, he said that he would meet President Putin at the G-20 summit. So it's really interesting to see how that has evolved on two
different tracks as well.
ASHER: Yes, so basically, very conflicting messages when it comes to Donald Trump's view on Russia. But did we get any clarity specifically on
trade negotiations with China? He mentioned he is going to be meeting with Xi Jinping.
COLLINSON: Not really. Basically, the President defended his tactic of imposing tariffs on China. He tried to increase the political pressure.
He said that eventually China is going to have to do a deal. He talked about many companies leaving China perhaps to Vietnam.
He hasn't yet showed any evidence for that statement, which is a statement he's also made before. I mean, it seems very much like we're in a bit of a
stalemate here, the U.S. is believing, at least inside the Trump administration that the Chinese are about to cave, but there hasn't been
that much evidence of that so far.
It looks like we're almost heading for a long period of almost trench warfare over this trade war. It doesn't seem that there are any
breakthroughs looming ahead of the G-20 Summit, which is in just a few weeks in Japan.
If there was going to be a big meeting there and a climb down, you would think that we'd be seeing more diplomatic activity between the two sides.
That doesn't seem to be the case. But the President now is seizing on this so-called deal he did with Mexico over immigration last week after he came
back from Europe. And he said he has wrung significant concessions from the Mexican government to stop migrants coming towards the U.S. border.
That was under the threat of a five percent immediate tariffs ratcheting up to a maximum of 25 percent over a period of months. He basically says it
worked with Mexico, so it will work with China. Notwithstanding some of the -- disputing some of the President's view of his own deal, it doesn't
seem right now that those tariffs are forcing China's hand, at least in the short term.
ASHER: And finally, you know, with Kim Jong-un, specifically, the President did touch on a letter that he had received from the North Korean
leader, he didn't really go into too much details about what was actually in the letter. But what can we glean from that about a potential thawing
in relations between North Korea and United States?
[15:10:00] COLLINSON: Again, I think we're at a point where we're waiting for developments. The President has been criticized heavily again over the
last few days after he said that, you know, he under his watch allow the CIA to recruit the half-brother, Kim Jong-nam of Kim Jong-un who was
assassinated in Malaysia in 2017. There was a story this week to the effect of that had happened.
You know, the President, it looks is trying to keep this notion that he's brokered this breakthrough with North Korea alive, despite the fact that
North Korea has gone back to short range missile tests, and it hasn't really made any tangible progress to denuclearize in the Korean Peninsula.
There's talk about a third Summit between Kim and the President. But this point, you have to ask the question, what would that Summit achieve if two
previous Summits between the two men have basically not really moved the ball forward? It's very important for the President for his reelection
campaign to give the impression that things are working a lot better than they were with North Korea. You heard him say that they stopped nuclear
But in terms of meaningful negotiations to get the North Koreans closer to talking seriously about their nuclear program that doesn't seem to be
happening. I think we're going to see this over the next year and a half. The President really just needs to keep this idea open politically, that
these negotiations are working, even if it doesn't seem like there is very much going on.
ASHER: Right, so smokes and mirrors going on there. Stephen Collinson, live for us there. Thank you so much. Appreciate that. Okay, let's turn
to Hong Kong now where at least 72 people have been taken to hospital after a shocking day of violent protests. Tens of thousands of people faced off
with police over the city's controversial Extradition Bill. Police fired tear gas and pepper spray. Amnesty International accused them of breaking
Debate on the bill has now been postponed. Hong Kong's Chief Executive remains committed to the plan. The Extradition Bill would allow so-called
fugitives to be extradited to China, many fear the law could indeed be abused.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I think it's really unfair to the people, to the citizen, and then there's a lot of gray area in between. So that's why we
need to fight for the things we think is right and correct.
UNIDENTIFIED MALE: Once you commit some crime in China, which we are not sure what kind of crime because they always change the law, and you come
back to Hong Kong, you are very possible to be like rapped and go back China.
AI WEIWEI, ACTIVIST AND CHINESE DISSIDENT: I have no confidence that Hong Kong's government, which is not democratically elected, and they are in
favor of the Chinese government.
(END VIDEO CLIP)
ASHER: Pro-democracy leaders have accused Hong Kong's Chief Executive, Carrie Lam of selling out. She choked up during a television interview
earlier insisting she loves the place she calls home.
(BEGIN VIDEO CLIP)
CARRIE LAM, CHIEF EXECUTIVE, HONG KONG (through translator): They say I sold out Hong Kong. How could I? I was born here. And I grew up here
with everyone. The love I have for this place has led me to sacrifice a lot personally.
(END VIDEO CLIP)
ASHER: All right, you can see Carrie Lam just choking up there. Chief Executive of Hong Kong. I want to bring in Matt Rivers. He is monitoring
the events on the ground for us in Hong Kong. Matt, I understand it's about 3:00 a.m. where you are. Set the scene for us.
MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Yes, well, it's very different than it was at 3:00 p.m., Zain. It's very different than it was
at 3:00 p.m., Zain, because things have calmed down significantly. What we saw 12 hours ago was tear gas. We saw rubber bullets. We saw water
cannons being used.
That came after a protest started at about the 10:00 a.m. outside of the Legislative Council Building about that controversial bill that you were
just talking about. That's where we saw tens of thousands of protesters come out largely peaceful to start with. But something really changed
around 3:00 to 4:00 p.m., and that's when things got violent.
What ended up happening was the protesters got moved away from the Legislative Council Building and down to where we are right now. So this
is a major thoroughfare in the city's central financial district, and this entire road has been blocked for the better part of the day.
Tear gas was fired along this road as we were following the police and ultimately down that road there, there is a makeshift barrier that
protesters actually put up and for hours, there was a standoff between protesters and police.
Police on one side, protesters on the other and we didn't know how that was going to end. And at one point we thought that perhaps police would
continue to push and try and get thousands of people off the street. But what ended up happening was that protesters decided to disperse. Police
decided disperse, and what could have been a far more violent day ended up not being so.
[15:15:06] ASHER: And so -- I'm just waiting for him to put his earpiece in, so Matt, if the protests continue, and this Extradition Bill does end
up passing, people are saying that things there on the ground of Hong Kong could really turn ugly.
RIVERS: Yes, that would be, I think the next step, Zain. And we don't know when exactly that would happen. We are not sure exactly how long this
debate is going to take in the Legislative Council here, the debate that was scheduled for 10:00 a.m. this morning ultimately ended up getting
postponed because of these protests.
So when that could eventually take law, there's a couple different options. But if that happens, I think you would see some serious protests. People
are angry about this bill. They are very upset about the idea that it could go forward. They think that by putting this bill into place, by
making it into law, the kind of firewall, the legal firewall that has long existed between them mainland and Hong Kong might be lowered.
That's what activists are saying here, and so we could certainly see more violence if this were to eventually go into effect. But what protesters
are saying is that they're trying to get it to not get to that point by trying to generate enough momentum to force lawmakers to repeal the bill,
although if you listened to Carrie Lam, the Chief Executive of Hong Kong in that interview, it doesn't appear that she's going to be backing down
ASHER: All right, Matt Rivers live for us there. Thank you so much. Appreciate that. Okay, so the U.K., which handed Hong Kong over to China
and 1997 has warned the Extradition Deal could and should respect the terms of that agreement. The U.S. has also spoken out saying Hong Kong's special
status could be at risk, the Hang Seng fell with property companies leading the decline.
Hong Kong has long been home to foreign companies that want easy access to China and other Asian markets.
Victor Gao is the Director of the China National Association of International Studies. He says Extradition Bills are common all around the
world. So Victor, thank you so much for being with us.
VICTOR GAO, DIRECTOR, CHINA NATIONAL ASSOCIATION OF INTERNATIONAL STUDIES: Thank you for having me.
ASHER: So give us more detail as to why you absolutely believe that this bill is necessary?
GAO: Well, first of all, Hong Kong, as they are currently has Extradition Bill with about 20 countries or regions. And internationally speaking,
Extradition Bills are very common, involving different countries.
China itself has similar arrangements with about 40 countries in the world, and among developed countries, it is highly common. It's the rule rather
than the exception. Therefore, I think the people in Hong Kong should not worry that much about the bill itself, but to ensure that the extradition
whenever it is exercised should be done with the rule of law, and without being abused for example so that the legitimate rights of the people will
ASHER: Well, that is the concern of a lot of people on the ground there in Hong Kong that if this Extradition Bill was passed, that it could lead to a
lot of people unjustifiably being picked up or put on trial in China where the Communist Party rules. So aren't those concerns somewhat valid?
GAO: Well, first of all, Hong Kong is a democracy. People they have the right to protest and demonstrate, and the fact that such a large scale of
demonstrations and protests are happening as we speak in Hong Kong, speak loudly to the fact that Hong Kong has a vibrant and democratic system.
So the people's right to demonstrate and protest need to be fully protected. Now, on the other hand, I think, if the demonstrations become
unlawful, for example, resulting in hurting the policeman or disrupting the civil order in Hong Kong, then the police has full authority and
authorization to do whatever they need to do to bring order back to Hong Kong.
Hong Kong as an international financial center cannot afford to be disrupted in its normal course of business, and people need to really abide
by the rules in exercising that democratic rights, therefore I hope, eventually when the dust settles, the legislature need to be given the
chance to do their business, and people having the right to express their views need to let their voices be heard by the members of the legislature.
ASHER: And actually, a lot of members of the international community have spoken out, including the U.K. and the U.S. and said that it is important
that given the scale of these protests that the voices of the people who are out in the streets, and demanding for change, demanding that this
Extradition Bill not be signed, it is important that their voices are heard in this.
GAO: Well, the people definitely need to have their voices be heard by the government and the legislature in Hong Kong. But that doesn't give an
automatic right to suspend the legislative work of the Legislative Council in Hong Kong.
Therefore, I think the better way is really to listen to whatever the grievances the people have, and then go through the process as required by
the law and let's see what exactly the legislature in Hong Kong will do with this Extradition Bill.
[15:20:05] ASHER: Do you fear that political activists, not just criminals, but political activists could be put in danger with this bill?
GAO: Well, there is always such danger. And there is concern and I hope eventually between Mainland China and Hong Kong as they are, there can be
more reconciliation and the differences between the two systems can be more narrowed.
But whatever concern we may have in this particular regard, does not take away the right of the legislature to go over this bill about extradition,
which is becoming more and more important because now in the internet age, there are more and more cases where offenses may take place in one
jurisdiction, impacting on the rights of the other jurisdictions or international cooperation and cooperation between Mainland China and Hong
Kong become more necessary in dealing with this cross border offenses.
For political activists, I still hope they have the full right to express their political views, but also do so within the rule of law requirements.
ASHER: Mr. Gao, live for us there. Yhank you so much. Appreciate that. All right. Still to come here on QUEST MEANS BUSINESS, Nintendo's billion
dollar delay. The Japanese video game giant pushed back the release date of the latest version of a very popular title, sending shares sharply
lower. That story is next.
ASHER: So all good market rallies must come to an end. After a flat finished Monday, U.S. stocks are trading firmly in the red down about 47
points or so. The major averages are still up more than four percent in June. Thanks to a sizable rally last week, inflation numbers came just
about as expected with consumer prices rising at 0.1 percent in the month of May.
Okay, so Nintendo fans are used to putting up with delays when waiting for the next big video game to be released. But investors clearly think this
latest setback has indeed crossed a line.
At E3 Game Expo in Los Angeles, Nintendo reveal that the release of its eagerly awaited Animal Crossing game has been pushed back. The news
brought the stock down 3.5 percent by the end of Tokyo trading erasing about a billion dollars in value.
CNN's Jon Sarlin is at E3 in Los Angeles. He joins us live now. So why is this game Animal Crossing so important, especially for Nintendo investors?
JON SARLIN, CNN PRODUCER: Zain, I mean, it's interesting that one game can have that profound an effect on a market cap, not even the cancellation of
the game, but just a delay and that's because Nintendo more so than Microsoft or Sony is really dependent on in-house games to drive sales for
its Nintendo Switch.
[15:25:12] SARLIN: So the delay of one of their prominent games like Animal Crossing, can have a really profound effect on their bottom line.
Now, it's interesting to note that one of the reasons Nintendo is saying that they delayed the game is to ensure these -- I have the quote here,
"It's to make sure that our employees have a good work-life balance."
Now, this is coming after a year of a lot of controversies within the video game industry, on how it treats its employees, especially when games are
about to be made and there's the notorious period of crunch where employees work hundred-hour weeks. So Nintendo is coming out, they're taking a hit,
and they're saying they're doing it to ensure their employees' wellbeing.
(BEGIN VIDEO CLIP)
STRAUSS ZELNICK, CEO, TAKE-TWO INTERACTIVE: Any new technology that brings our products to a broader audience is almost certainly a good tech, so
welcome it. It remains to be seen how it plays. There are big expectations surrounding Stadia. I have pretty big expectations.
One thing I'm pretty convinced of is, is streaming technology will matter for industry and probably will matter within the next two or three years.
(END VIDEO CLIP)
ASHER: And Jon, in the post--
SARLIN: So there you have Strauss Zelnick --
ASHER: I was just going to ask -- okay, go ahead, I apologize. Go ahead, go ahead.
SARLIN: So he is with Take-Two, and he was telling me about Google's entry into the video games field. Google has come out and they're saying that
they're having Google Stadia, which is going to stream games for the first time.
Now, the question is whether developers are going to come and play ball with Google and give them their game. So it's interesting to hear CEOs
like Strauss Zelnick come in and say that they're interested in Google, but they have to see how it's going to play out.
ASHER: And so in this sort of post Fortnite environment, where our video game companies looking to make them money?
SARLIN: Well, that's a great question, because Fortnite really was transformative for this industry. Fornite came out, and it's a free game,
it's zero dollars to play the full game for anyone. You can download it on your phone, on PS4, on a computer, and they make money through selling
digital goods within the game called micro transactions.
Now, this has been a very controversial subject in the video game world. But most of the big games that we're seeing now have some form of micro
transactions, it's really rare that a game won't have it. And you can actually see behind me, there are CTR -- Crash Team Racing -- that game
doesn't have micro transactions, it's one of the very few and they've actually come out and said, "Hey, this is a selling point for our game.
We're one of the few -- you can pay us money, and we'll give you the full game. No micro transactions necessary."
ASHER: And obviously, you're at E3 2019 in Los Angeles, just walk us through what are the big trends and the highlights there that you're paying
SARLIN: Sure. So streaming really is the number one thing. When you think of streaming movies or streaming television, it's a lot more
straightforward. Streaming games is much more complicated. Technology there needs to be really advanced because when you press a button on your
controller, it has to be instant, your character has to jump instantly or shoot a gun instantly.
So Google is coming out and they're saying the technology is here, but it's not just Google, Microsoft has announced their streaming service and then
you have developers like Bungee and Ubisoft coming out and saying we're developing our own streaming services.
So right now, it's a big Wild West environment and no one knows how it's going to turn out.
ASHER: Jon Sarlin live for us there. Thank you so much. Appreciate that. All right, shares in Axel Springer are up more than 10 percent in
Frankfurt. The American firm, KKR wants to take Germany's most influential publisher private. The deal is worth nearly $8 billion for the owner of
"Bild." It has support from the largest shareholder, Axel Springer's widow, Friede Springer.
Holdings include "Business Insider," Springer says its journalistic principles will not change as a result of this deal. It also owns half of
POLITICO Europe, and the outcomes not a moment too soon, Axel Springer has been under intense pressure and its CEO says that being private, will allow
it to make much needed investments.
I want to bring in Hadas Gold who is joining us live now from London. So Hadas, just walk us through -- give us more specifics about the terms of
HADAS GOLD, CNN BUSINESS REPORTER: Right, so then this would take Axel Springer private, it's not clear exactly what the stake that KKR would
have. They would need a minimum of 20 percent as you noted, it's about $7.7 billion, and they're offering pretty much a 40 percent premium which
will make it attractive to these minority shareholders.
And as you noted, it comes at a tough period for Axel Springer. They've actually had to lower their profit and sales targets. They've blamed a
global macroeconomic trends. They also interestingly enough, blamed a new digital tax in France as part of the reason they had to lower those
Now Axel Springer says that they need this KKR investment in order to help them grow that otherwise it wouldn't have had that growth potential. And
where a lot of that growth seems to lay for them is actually classified, though they're known as a publisher, as you said they own "Bild," which is
probably the most well-known newspaper in Germany. They own "Business Insider," which we know very well as well as POLITICO or half of POLITICO
Classified seems to be where they think there is a lot of growth and a lot of that actually has to do with the possibility of eBay spinning off parts
of its business which Axel Springer with the support of KKR would potentially like to take advantage of now.
As you noted, Axel Springer says that their journalistic integrity would not change, but actually the Union of German Journalists said in a
statement that they're actually concerned about this purchase. They say KKR has in glorious past with some previous media acquisitions and that
they fear that KKR presses Axel Springer at the cost of jobs.
Now, the two companies have said that they are committed to the journalistic integrity. But this just goes to show you the pressures that
media is facing all over the world, going private like this and that shift over to a focus on classified, Zain.
ZAIN ASHER, HOST, QUEST MEANS BUSINESS: All right, Hadas Gold live for us there, thank you so much. And QUEST MEANS BUSINESS will be back in just a
couple of minutes, don't go away.
ASHER: Hello, everyone, I'm Zain Asher, there's more QUEST MEANS BUSINESS in just a moment, but first, these are the headlines on CNN at this hour.
U.S. President Donald Trump signed a joint declaration with Poland today to strengthen security cooperation. He and the President Andrzej Duda just
wrapped up a news conference at the White House.
Mr. Trump says Poland will provide the infrastructure to support a military presence of about 1,000 troops. At least, 72 people have been treated at
hospitals after violent protests in Hong Kong. Tens of thousands of people faced off with police over the city's controversial Extradition Bill, a
debate on that has now been postponed.
And Japan's Prime Minister is warning against armed conflict, even accidental ones in the Middle East. Shinzo Abe is in Iran where he's
offered to mediate between Tehran and the United States. Mr. Abe praised Iran's decision to stick with the nuclear deal even though the Trump
administration pulled out.
[15:35:00] And more than 200 demonstrators were taken into custody in Moscow. Protesters remain angry about last week's arrests of journalist
Ivan Golunov. The charges against him were dropped on Tuesday. And Boris Johnson is kicking off his campaign to replace Theresa May as Britain's
next Prime Minister.
Conservative member of parliament vowing to deliver Brexit, move the country and defeat opposition leader Jeremy Corbyn. He dodged the question
about his past drug abuse. And France to send a new friendship tree to the White House after the one that was sent last year actually died in
quarantine. French President Emmanuel Macron confirmed the oak tree had died and they would send a birch tree, instead. He warned the tree's
death should not be seen as a symbol for U.S.-French relations.
As the U.K. braces for any potential impact when it comes to Brexit on its economy, Greece is trying to protect its hard one market stability from
current political turmoil. The Greek Prime Minister has called snap elections for July after the ruling party performed badly in recent EU
Away from politics, Greece is experiencing one of the world's best rocket rallies. Let's talk more about that. The President of the American-
Hellenic Chamber of Commerce Simos Anastasopoulos joins us live now. So, just with the stuff that's actually coming up, do you expect the populists
who are currently in power to be replaced? What are your thoughts on that?
SIMOS ANASTASOPOULOS, PRESIDENT, AMERICAN-HELLENIC CHAMBER OF COMMERCE: Well, what the Euro election results suggests and the polls also
indicate, it seems that there will be a change of government. However, we'll have to wait until July 7th to see what the people decide --
ASHER: And if it ends up being new democracy, how do you think investors will respond to that?
ANASTASOPOULOS: Well, already, I think the markets have given their response, and they basically are signaling about what they expect from a
change of government. Markets are rallying right now, the bond yields are the lowest ever, so we suggested this is a good message.
ASHER: So, Greece as we all know has a long history when it comes to political uncertainty. Based on that, given the history, why do you think
investors should still believe in Greece, should still trust Greece?
ANASTASOPOULOS: I think that a lot of changes has happened -- have happened in Greece during these last years of crisis. The country has been
-- labor does any form either has excelled in form, well, lead in reforms lately out of fiscal economics are in order. We have met all targets set
by the creditors by institutions.
We're even surpassing some of the targets, especially primary settlers, and therefore we believe that the economy is on the right track.
ASHER: OK --
ANASTASOPOULOS: At the same time, seems like the confidence is building up right now and the markets have responded to that. So, we're back on
stability, back on growth.
ASHER: OK, so, you're saying it's on the right track. But under the new sort of political climate, depending on what happens July 7th, do you --
what do you think in terms of economic reforms? What should be the economic reforms that Greece ends up prioritizing?
ANASTASOPOULOS: Well, although have done a lot of reforms on the fiscal side, we still need to do some reform that remain, to be made on the growth
side. And the competitiveness level of the country, for example is still low, and they're willing to reform our judicial system to expedite it in
reality, lower perhaps the tax rates, maybe a more favorable labor law at the time.
These are the user things as well as bureaucracy of course. We need to cut the red tape.
ASHER: Cut the red tape. OK, so when you look at cities there and just over -- since 2015, you know, just in terms of their legacy, a lot of
promises, Alexis Tsipras has been criticized a lot for breaking promises. What do you think his legacy is going to be?
ANASTASOPOULOS: Well, I think also this government has performed rather well. Although there were some problems at first, it was soon realized
that they couldn't happen under -- you know, Greece been in austerity. And we had to be in austerity for some time so that we get back on track.
This government has performed rather well. Has gone through --
ASHER: OK --
ANASTASOPOULOS: The reforms necessary, balance the economics of the country and now we're back on track. So, even there on the government that
was rather to the left of the political spectrum, we have performed extremely well.
ASHER: And obviously one thing that -- one thing that we can all say has definitely performed extremely well is of course the Greek stock market.
Do you think that sort of rallied, those numbers that we're seeing there is actually sustainable long term?
ANASTASOPOULOS: We have to see, but we believe, so, yes. Because the stock market has dropped a lot during these years of crisis, and therefore,
we believe that the result have up market room. Yes, but --
ASHER: OK, there's still more room to run is what you mean?
ASHER: OK --
ANASTASOPOULOS: A lot of room there. And we are also performing well right now. So, it's the markets that respond to what has happened to
Greece as well as what they expect the prospects from the change of government or the continuation of the same, I would have to say.
[15:40:00] ASHER: Yes, many people are saying that if new democracy --
ANASTASOPOULOS: So --
ASHER: Takes over, it could be -- it could be very good for investors.
ANASTASOPOULOS: And I believe that this excludes any kind of instability that one might suggest, yes --
ASHER: Simos Anastasopoulos, thank you so much, appreciate that.
ANASTASOPOULOS: Thank you, Zain.
ASHER: OK, so the U.S. beat Thailand in the Women's World Cup, now they're battling their toughest opponent, inequality. We'll explain, next.
ASHER: The United States demolished Thailand 13-0 on Tuesday in a record- setting opener at the Women's World Cup. As they defend their title, they're also defending themselves against criticism they should have gone
easier instead of running up the score and celebrating late into the game.
Maybe favored to win a fourth tournament, equal pay though is a tougher game. When they won back in 2015, the U.S. women's team made $1.7 million
in bonuses compared to the men who were knocked out early and collected $5.3 million. A bit of a gap there. CNN's Don Riddell is following it.
It all from CNN -- so Don, I think a lot of people at this point are just asking why? Why is the gap between men and women in just in terms of
salaries and bonuses so huge?
DON RIDDELL, ANCHOR, CNN WORLD SPORT: Well, it's complicated, Zain, just if we were to look at the numbers you just presented, I think the U.S.
Soccer Federation would say, well, that's all down to FIFA; football's world governing body because they distribute the bonuses for World Cup
tournaments and the men between them get $400 million whereas the women only get $30 million.
And if you were to ask FIFA, they would say, well, that's because of the television revenues, and the men's game is simply more popular than the
women's. Obviously, the women's game is growing and developing, they've only been playing the Women's World Cup since 1991, the men have been doing
it since 1930. That's what? Eighty nine years now.
So, clearly, the women's game is growing, but we must point out that this is recognized as being the biggest and best Women's World Cup so far, and
there is no doubt that the women's game is growing and getting better.
ASHER: So, but do you think that the outrage, I mean, everybody is talking about this. Do you think that the outrage we're seeing will actually make
RIDDELL: Outrage about what? The pay gap --
ASHER: Yes, the pay gap --
RIDDELL: Or the 13 nil?
ASHER: Let's start with the pay gap first.
[15:45:00] RIDDELL: Right, look, will it make a difference? I mean, I think what the women's players are doing by suing their own federation is
definitely getting noticed. A lot of people are talking about that, it was the big story on the eve of the tournament.
The players are hoping that, that story can now go away so they can just focus on football. But the fact is, a lot of people are talking about that
and it is a good thing. It remains to be seen where they will get with their case, but there's no doubt that the women's team in America which is
the top-ranked team in the world, they've won the World Cup three times, that's more than anybody else.
They are trailblazers --
ASHER: Yes, OK --
RIDDELL: They are role models, they are doing an awful lot for the development of the game and for the women's cause in general.
ASHER: And on a side note, some people were -- have been quite critical about the way they celebrated, you know, after getting 13 goals. Just give
us your take on that.
RIDDELL: It's OK to score goals at the World Cup, that's what you're there to do, especially in the group stage where actually the number of goals you
score could determine whether you finish first or second in your group. So, I think it was OK for the American team to do that.
Clearly, it was a mismatch. I mean, Thailand are ranked 34th in the world. They are minnows in the women's game. It was uncomfortable to watch at
times because the Americans were just so much better than them. But I don't think many people are saying they should have stopped scoring goals,
and arguably, it would have been more disrespectful to essentially stop playing and just pass it around. That would have been even worse.
But the criticism comes with the way they celebrated in such an enthusiastic manner when they were scoring the 9th, 10th, 11th, 12th and
13th, because at that point, the result wasn't in doubt. The game was over --
ASHER: Right --
RIDDELL: And people said that was -- that was humiliating for them to do. Now, I will point out that several of the American players were scoring in
World Cups for the first time. So you can understand why they would be enthusiastic. I think the criticism has been named mainly at players like
Megan Rapinoe and Alex Morgan who are very well established.
It was not a unique experience for them, and they just seem to be a bit too happy about it. And for anybody that says, well, hang on a minute, you
wouldn't criticize the men if they behaved in the same way. Well, actually, you would if Neymar or Ronaldo behaved like that, if they were
celebrating like that against an inferior team, they wouldn't just be criticized for it, I mean, they would be ridiculed.
So, you know, we have seen men's matches where they have run up the score and they have been more respectful to their opponents. We saw it notably
when Germany beat Brazil in the semi-final of the 2014 World Cup in Brazil where Germany won 7-1. And towards the end, they recognized that it was a
bit awkward and they were scoring goals, but they were being very respectful in the way they celebrated them.
ASHER: Don Riddell live for us there, thank you so much, appreciate that. All right, time for a quick break here on QUEST MEANS BUSINESS, when we
come back, a false video of Mark Zuckerberg making the rounds on Instagram, why deep fakes keep popping up and how social media is handling them,
[15:50:00] (COMMERCIAL BREAK)
ASHER: A fake video of Mark Zuckerberg that appeared on Instagram is putting Facebook's misinformation policy to the test. The video known as a
"deep fake" uses AI, artificial intelligence to falsely show Zuckerberg talking about controlling users data. The clip was made for an art
installation in the U.K.
This comes as the U.S. Congress prepares to hold a hearing on deep fake technology on Thursday. CNN's Donie O'Sullivan looks at how researchers
are tackling the topic ahead of 2020.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They go to Mexico, they're going to many other countries.
DONIE O'SULLIVAN, CNN REPORTER (voice-over): Here's President Trump.
ALEC BALDWIN, ACTOR: They took my microphone to Kenya and they broke it and now it's broken.
O'SULLIVAN: And Alec Baldwin's impression of him from "Saturday Night Live". But now, take a look and listen at this.
BALDWIN: Picking up somebody sniffing here.
O'SULLIVAN: That's not really President Trump, it's just his face mapped on top of Baldwin's. Researchers at USC created this clip and many others
of prominent politicians showing just how easily viewers could be tricked.
HILLARY CLINTON, FORMER SECRETARY OF STATE: Listen, America, Donald Trump cannot be president.
O'SULLIVAN: Videos like this are known as deep fakes. A new sophisticated way to create fake videos using artificial intelligence and their potential
damage is catching attention on Capitol Hill. While some technology experts say that the trick is exaggerated, it's very real for lawmakers
like House Intelligence Committee Chairman Adam Schiff.
REP. ADAM SCHIFF (D-CA): It's a race between the AI to create them and the AI to detect them.
O'SULLIVAN: His committee is scheduled to hold a hearing tomorrow, discussing national security challenges of artificial intelligence,
manipulated media and deep fakes.
REP. NANCY PELOSI (D-CA): So the visuals that, obviously, were planned.
O'SULLIVAN: Highlighting this altered video of House Speaker Nancy Pelosi, it's not an example of a deep fake, but was edited to make it look like
she's slurring her words.
SCHIFF: It would be very easy to introduce a doctored video that could have a very sizable impact anonymously at various places around the globe
at one time. And whoever introduced it would always have some level of plausible deniability.
O'SULLIVAN: Other technology experts agree.
HANY FARID, PROFESSOR, UNIVERSITY OF CALIFORNIA BERKELEY: We're going to get to a point at some point in the near future where you are not going to
visually be able to distinguish between the two. And we sort of want to get out ahead of this before we get to that point.
O'SULLIVAN: Hany Farid; UC Berkeley studied hours of footage of political figures and 2020 presidential candidates' movements when they talk,
constructing a system called finger-printing, aiming to help the government and news organization separate the real from the unreal.
FARID: By the end of '19 and the lead up to the Iowa caucuses and the New Hampshire primaries is that we will have most, if not all of the candidates
ASHER: And Donie O'Sullivan joins us live now. So Donie, just how does Facebook keep up with these deep fake videos? I mean, is there anything
they can do about it?
O'SULLIVAN: Well, I mean, right now, frankly, they're not keeping up. We've seen, you know, a few weeks ago, there was that video of Nancy Pelosi
which was not a deep fake, but it was an edited video to make it appear as if she was slurring her words.
Facebook didn't really catch that video until it had more than a million views, and a lot of people were tricked by it, and they still didn't take
down the video. They de-ranked it, meaning that it was seen in less people's --
ASHER: Right --
O'SULLIVAN: Newsfeeds. There was obviously then this video yesterday which we found of Mark Zuckerberg, a deep fake, and the company said that
they will leave that video up there, that basically they're not in the business of removing false information. But that is, obviously, a position
that many people --
ASHER: It's quite controversial.
O'SULLIVAN: Have -- yes, trouble, you know, sort of comprehending that.
ASHER: Especially as we -- as we head towards 2020, misinformation on Facebook's platform is a massive problem.
O'SULLIVAN: Absolutely, and I mean, you see here with deep fakes in that 2016, we had Russian trolls, we had bots, we had fake false information
news stories going viral on Facebook. And I think Facebook has done a lot by actually remove false information, but they've done a lot to try and
tackle that problem, whether it'd be down-rank news articles or move, you know, sort of constant bad actors.
[15:55:00] But now we're seeing that there is this new generation, sort of the next level of disinformation could be these deep fakes. And so it's
unprecedented space, I guess we're going to, but I think it is good that the conversations and the work, Hany is doing in California and his
colleagues, that it's happening now rather than 12 months down the line when maybe we might be very far behind us.
ASHER: And also, there was a "Wall Street Journal" report that came out, saying that they had uncovered e-mails that suggested that Mark Zuckerberg
knew about certain privacy issues with Facebook's platform well before disclosing it to the public. I mean, how damaging is that do you think,
O'SULLIVAN: Facebook is pushing back this afternoon very strongly against the "Wall Street Journal's" reporting that Zuckerberg knew about these
privacy issues. Of course, Facebook is about to face a historic find which is expected from the Federal Trade Commission here in the United States.
They've -- Facebook has put aside $5 billion to -- and that, of course, investigation that FTC, Federal Trade Commission investigation is all to do
with this issue of how Facebook handled privacy.
So, if what the "Journal" reports is true, which Facebook says it's not, it would be extremely troubling for the company. But time will tell and I'm
sure when the FTC does come out with the results of its investigation, we'll find out more.
ASHER: And actually, we just showed it on the screen. But Facebook shares were down about 2 percent. I mean, just overall, how are they handling
just all of the misinformation? I mean, all of the -- all the issues around misinformation that the company is dealing with. How well are they
handling it, do you think?
O'SULLIVAN: I mean, if you think about just the roller coaster ride they've had since -- particularly since the 2016 election, and then last
year, there was a Cambridge Analytics -- Analytica scandal and it was scandal after scandal. I think maybe a lot of people at Facebook thought
maybe, 2019 could be a breather, but now we've seen this with deep fakes and the Nancy Pelosi video and obviously, you know, talk of anti-trust
action here in the U.S.
This is a company that plays a huge role in many of our lives, a very important role in the world, and they're really now starting to deal, I
think with the negative consequences of having such a pivotal role in society. I mean -- and back to the, you know, the sort of original
question on false information.
That is, you know, they -- Facebook does not want to be the arbitrators of truce --
ASHER: All right --
O'SULLIVAN: And that is -- that's their position.
ASHER: All right, all right, Donie O'Sullivan live for us, thank you, appreciate that. OK, we'll have the final numbers in terms of the trading
day after the break.
ASHER: And the closing bell, you can hear it there, it's ringing on the Wall Street, the Dow is down 50 points or so. I'm Zain Asher --