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QUEST MEANS BUSINESS
Florida Airports Close as Dorian Approaches; U.S. Gets a New European Partner for 5G; Football Star Romelu Lukaku Racially Abused in Cagliari. Aired 3-4p ET
Aired September 2, 2019 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ZAIN ASHER, CNN INTERNATIONAL HOST: No trading on Wall Street as the U.S. marks the Labor Day holiday. Here is what is moving markets around the
rest of the world.
No ifs, no buts, but perhaps --perhaps a general election. Boris Johnson throws down the gauntlet to his rivals in his own party.
And Argentine stocks are soaring as Mauricio Macri turns to capital controls.
And there's a change at the top of Saudi Aramco ahead of what could be the biggest IPO ever in history.
Coming to you live from the world's financial capital here in New York City. It is Monday, September the 2nd, I'm Zain Asher in for Richard Quest
and this is QUEST MEANS BUSINESS.
Good evening. There may have been no trading on Wall Street, but it's been an extremely busy day. We are of course keeping a close eye on Hurricane
Dorian. It's already done unprecedented damage the Bahamas as it heads for the East Coast of the United States. We will show you the scene from
Freeport in just a moment.
But first though to London, where the Prime Minister has just insisted there are no circumstances under which he would ask Brussels for another
delay to Brexit.
Boris Johnson says he believe the chances of getting a deal are improving and urged MPs to stand behind him. While he didn't call an election, as
some has speculated, some suggest it might only now be a matter of time.
Mr. Johnson gave a speech before Parliament reconvenes in London and he seemed keen to warn fellow Conservatives not to side with the opposition.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: To show our friends in Brussels that we are united in our purpose. MPs should vote with the government
against Corbyn's pointless delay.
I want everybody to know there are no circumstances in which I will ask Brussels to delay. We are leaving on the 31st of October, no ifs or buts.
We will not accept any attempt to go back on our promises or scrub that referendum --
(END VIDEO CLIP)
ASHER: All right, for more on all of hits, Nic Robertson is at Number 10 while Bianca Nobilo has more from our London studio. Nic, I want to start
with you. You were there, as Boris Johnson addressed the public a few hours ago, what stood out to you?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: The very fact that he has said essentially, if the opposition does what it says it's going to do,
which is try to pass legislation to tie his hands either to get an agreement in Parliament for a no deal, or to actually get a deal with the
European Council leaders meeting in the middle of October, if he doesn't get that, then they will force him.
They want him to send a letter to the European Union asking for an extension. If they have that -- if they have that in lure and if they're
able to pass that, he has clearly said nothing is going to stop him doing what he wants.
He does seem to be setting the agenda here for the very real possibility of a snap election. Why do I say that? He said he didn't want an election.
He said that the British people didn't want an election right now.
He started off his whole speech with some campaign rhetoric. But then he said very clearly that if the vote does go against him in Parliament, then
he essentially cannot negotiate from the position of strength, he believes he needs to negotiate with the European Union i.e. the very real,
incredible threat of a no-deal Brexit. Therefore, what he is saying is he cannot negotiate and the only option will be to head for an election.
ASHER: And Bianca, as you heard Nic, just say there that Boris Johnson obviously did say that he doesn't necessarily want a general election. But
there are those like former Prime Minister Tony Blair, who believe an election would actually work in Boris Johnson's favor, because essentially,
people would prefer Johnson over Jeremy Corbyn.
BIANCA NOBILO, CNN CORRESPONDENT: Yes, and we have to think about the narrative and the optics here. It's important as far as Boris Johnson and
his camp are concerned to at least seem as though they're not going for an election because it's what they want to do. But they're trying to affect
the Brexit that they purportedly believe in and Parliament is thwarting them in doing so.
So then their last resort would be to say, "Well, we're going to ask for an election on the 14th of October," as was just recently confirmed to us in
And that's because there is a huge amount of apathy and fatigue in the British population about the Brexit process, the lack of any kind of
progress that's been made over the last couple of years. So it really does suit Boris Johnson not to be the person who seems to be pushing for the
election, but he is going for an election because of the circumstances that he finds himself in.
NOBILO: And if he does have to do that, as you quite rightly point out, Zain, he has been doing much better in the polls than Jeremy Corbyn. There
has been a Boris bounce since he took over from Theresa May.
The public seem to be responding well to his decisiveness and the way that he has approached trying to break the Brexit impasse.
So all of those signs added to the fact that Boris Johnson is a well-known campaigner, and he does thrive in that kind of setting. Plus there being
almost no parliamentary options left does mean that it's not as unappealing a prospect as it may have sounded for the government several months ago.
ASHER: And Nic, Boris Johnson, in his speech earlier did say that the chances of a deal with Brussels has actually been rising. How so?
ROBERTSON: There was some sense that coming out of the G7 meeting, and of course came, you know, that weekend in Biarritz and in the days preceding
that, he'd met with German Chancellor, Angela Merkel with the French President Emmanuel Macron.
And the sort of sense was that the words that were being picked up were that he was being taken more seriously following those meetings, that there
was a sense that people that met him and he sat next, if you remember at the G7 meetings with Donald Tusk, the European Council President that Boris
Johnson was grasped and appraised of all the facts and the nuance behind what he was talking about on the Brexit, the difficulties of the Brexit
negotiation that he was on top of the game, if you will.
That he was also beginning to put forward ideas, some ideas that could be could solve the problem of the backstop, which he said must go from
withdrawal agreement, change for some alternate arrangements, but that said that sort of have been in the air in this whole sense that Angela Merkel
said that we can do a deal in 30 days. The Chancellor clarified that after saying that's not quite what we meant.
So there's some positive spin that came out of all of that. But I think what we have seen since Boris Johnson, proroguing Parliament has taken some
of the shine off of that, certainly for some of his own MPs, but this sense that Boris Johnson is not the idiot that some people in Brussels might have
thought he was, has counted in his favor, certainly.
But the bottom line for the E.U. is at the moment that Boris Johnson and his negotiators on Brexit have not put forward anything concrete that's
going to move the situation one iota so far.
ASHER: All right, Nic Robertson, Bianca Nobilo, thank you both. Live for us from London.
The sterling is thinking over speculation of a snap general election in the U.K. The pound was down more than one percent against the dollar, Monday,
as Brexit uncertainty continues to mount.
Speaking to me earlier on "The Express," Philip Shaw said the drop doesn't do certain sectors any favors.
(BEGIN VIDEO CLIP)
PHILIP SHAW, CHIEF ECONOMIST, INVESTEC: Certainly, importers are going to find the drop in the pound unhelpful, obviously because it raises their
cost in sterling terms. In principle, it should help exporters, but of course, if we're talking about possibly in amounts of chaos, with a no-deal
Brexit, with ports, traffic in particular being held up by regulatory and customs checks, then the fall in the pound really isn't going to assist
exporters or the U.K. economy in general.
So I think what the government is also doing to try and reassure business is to say, "Look, we are aiming to strike a deal with the European Union."
But at the heart of Boris Johnson's negotiating plan, it's that we are willing to leave without a deal on the 31st of October. And Mr. Johnson is
hoping that that galvanizes the European Union into a compromise which his government and the British Parliament can accept.
ASHER: And what sort of impact does all the sort of fears about a no-deal Brexit having a on the debt market there in the U.K.?
SHAW: Well, in terms of the debt market, there's several things going on. But the threat of a no-deal Brexit itself is encouraging U.K. financial
markets to speculate that there could be a cut in interest rates over the next year to 18 months perhaps, and that it's a potentially disinflationary
situation over the medium term, perhaps not over the first year or so or two, when after which the pound falls back.
But after that, inflation is perhaps less of a concern, so the U.K. debt markets have been held by the fear of a no-deal Brexit, but of course, also
by the wider global situation, in particular, the trade tensions between the U.S. and China.
(END VIDEO CLIP)
ASHER: So uncertainty on both political and economic front. For more, let's speak to George Buckley, Chief U.K. Economist at Nomura. He is
joining us live now from London.
So at this point, what more should the British government been doing to provide reassurance to businesses?
GEORGE BUCKLEY, CHIEF U.K. ECONOMIST, NOMURA: Well, it's just spent, I think, 100 million pounds on the most expensive government advertising
campaign to try and tell businesses what they should or shouldn't be doing. The problem is, a lot of businesses haven't actually started the process
And I think there is a lot of concern that that they think that the process is going to last too long, it's going to take too long to get in place what
they need to do. And they're still not convinced that we're going to end up in a hard Brexit. There's some glimmer of hope that what Boris Johnson
says about possibly getting a deal might actually come true.
And if it does, then all of their preparations and all of this effort that they would have gone to will be for naught. So I think there are a lot of
businesses which aren't fully prepared, and that probably will remain the case, even going into October and towards the end, even if we're still
looking at a no deal.
ASHER: And Boris Johnson earlier said the chances of a deal with Brussels has actually been rising. But in order to get a deal, you need to have no
deal on the table.
When you heard his speech, do you -- do sort of businesses and do you feel that there is the possibility that we will see a deal between the U.K. and
BUCKLEY: Well, I think when you look at what economists are forecasting, a lot of economists, but not by no means all, assuming that a deal is the
most likely outcome.
Now, the probability is very uniform, to be honest, at the moment between no deal, a deal and no Brexit because they are really the three main
outcomes that we could have.
When you say the probabilities are uniform, what we mean is that we really don't know where things are going. It's exceptionally difficult. But you
have to base your forecasts on one of those options.
Now, if you look at what the Bank of England said, it's tried to base its forecasts on a deal of some sort. The problem is, it conditions those
forecasts on market variables, such as you were mentioning before about the bond market, gilt yields, for example, and what the market is expecting for
rate cuts and Sterling.
Now all of those -- all of those financial market variables are pricing in quite a sizeable risk of Brexit. So a hard Brexit that is, and therefore,
you've got this very odd combination of a forecast, which doesn't -- isn't really a proper forecast, because it's based on two different, completely
ASHER: And how important is it for Boris Johnson to strike deals beyond the E.U., for example, with the United States?
BUCKLEY: So one of my favorite statistics is the distance between London and some of the key non-E.U. countries versus the distance between London
and E.U. trading partners, the latter, on average is probably about 800 miles.
The difference or the distance between London and the top four non-E.U. trading partners is 4,800 miles. There's a big difference. And when you
look at these gravity models, what they tell you is it distance is really important about how much trade you do with these countries.
So the risk is that, yes, while it could be quite important, the U.S. is a very important trading partner for the U.K., it can be only limited
relative to what we might potentially lose from leaving the E.U. with no deal and the countries that we have been used to trading with which are
exceptionally close to us geographically.
ASHER: Yes, the distance is a huge impediment. George Buckley live for us there. Thank you so much.
Hurricane Dorian wreaked havoc on the Bahamas Monday. The monster storm hovered over the islands ripping the roofs of houses and forcing even
rescue crews to take shelter. Now the Category 4 storm is the most powerful anywhere on Earth this year and the strongest ever recorded to hit
the Bahamas. The Bahamian Prime Minister calling the devastation unprecedented.
Meantime, in the United States, there is watches and warnings across Florida. It's currently about 105 miles off the coast of West Palm Beach,
Florida and moving westwards at a very, very slow pace of one mile per hour, if that.
Dorian is predicted to turn north late Monday and stay just off Florida's East Coast. The Hurricane Center warns even if Dorian doesn't make
landfall, the storm surge could still be life threatening. Florida's governor is pleading with residents to take precautions.
(BEGIN VIDEO CLIP)
GOV. RON DESANTIS (R-FL): People need to remain vigilant. If you're ordered to evacuate, you need to do that. From Palm Beach County all the
way up to NASA, the Florida-Georgia border, all those coastal counties have issued evacuation orders and it's important that residents heed those
You know, get out now while you have time, while there's fuel available, and you'll be safe on the road.
(END VIDEO CLIP)
ASHER: The damage has actually already been done mostly in the Bahamas. Patrick Oppmann has more on the catastrophic conditions from the City of
PATRICK OPPMANN, CNN CORRESPONDENT (voice over): Hurricane Dorian unleashing its fury on the Bahamas. The record-setting storm striking,
leaving behind catastrophic destruction.
Wind gusts spiking over 200 miles per hour, becoming the most powerful storm to hit the islands. Dorian, shredding homes here and sending debris
(BEGIN VIDEO CLIP)
HUBERT MINNIS, BAHAMIAN PRIME MINISTER: This is probably the most sad and worst day of my life to address the Bahamian people. We are facing a
hurricane. Hurricane Dorian that one that we are seeing in the history of Bahamas.
(END VIDEO CLIP)
OPPMANN (voice over): Heavy rains creating blinding conditions. Some towns submerged in floodwaters. Dorian making landfall in the Abaco
Islands on Sunday, leaving devastation.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Pray for us. Pray for Abaco, please, I am begging you. My baby is only four months old. Please. Pray for us.
(END VIDEO CLIP)
OPPMANN (voice over): Listen to a mother's desperate plea. Gerza Joseph (ph) waiting with other residents along with her baby. Their apartment
building now roofless and surrounded by murky floodwaters rising around them.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: People are trying to make it to the other side with these houses, but some people -- the water just took them and those are the
only people that got to make it over there. Some people, they didn't get to make it.
(END VIDEO CLIP)
OPPMANN (voice over): Those horrifying scenes playing again and again across the Bahamas. With the scale of destruction now coming to light,
haunting images showing Hurricane Dorian's dangerous power as it now takes aim at the U.S. coastline. Patrick Oppman, CNN, Freeport, Bahamas.
ASHER: And we'll have a full update on the storm's path as it heads towards the mainland United States. We will be live at the CNN Weather
Center in about 15 minutes from now.
Argentina is taking desperate action to try and stop its currency from falling. The move will give the government more power and demand action
And Saudi Aramco gets a new Chairman in a push to go public. Where the Middle Eastern energy giant stands, next.
ASHER: Argentina has put in place temporary currency controls to try and stop the peso from tumbling even more. The government gave itself the
power to restrict purchases on foreign currency and businesses will have to quickly bring back money earned overseas.
It's been a long road for Argentine President, Mauricio Macri. He was elected in 2015, promising the start of a new era of Argentina. He told
Richard about his lofty goals shortly after his election. Take a look.
(BEGIN VIDEO CLIP)
MAURICIO MACRI, ARGENTINE PRESIDENT: I am committed, Richard, to three things. Zero poverty in Argentina, defeat drug trafficking and improve the
quality of our democratic system.
We want to be recognized as an open, trustworthy country with clear rules, stable and equal for everybody. Because we know that to cut poverty, we
have to create jobs and create jobs means you need investments and for investments, you need to recreate confidence.
(END VIDEO CLIP)
ASHER: The good times didn't last. In May of 2018, Macri asked the IMF for a new bailout to try and stop a freefall of the peso.
The past August, Alberto Fernandez beat Macri by 15 percent in a primary vote. The peso fell 15 percent on the news.
Last week, Argentina asked for more time in repaying its debt. Standard and Poor's said the move was technically a default. Next month, Macri will
face a general election on October 27th. He is currently trailing his opponent.
Christopher Sabatini is a Senior Fellow of Latin America at Chatham House. He joins us live now. So how much capital flight have we seen in Argentina
since this news was announced?
CHRISTOPHER SABATINI, SENIOR FELLOW OF LATIN AMERICA, CHATHAM HOUSE: So the primer was on August 11th. On August 9th -- since August 9th, before
that they've lost more than $12 billion from their Central Bank, so it's been massive.
And the reason is, as the Peronist candidate who handed really quite a whopping defeat to Macri, it really represents sort of the old style, old
school populist politics of the predecessor. And so there's really concern about what this will mean in terms of government policy, government
stability, and what it will do in terms of fiscal responsibility.
And so that's -- Poor Macri now is sort of a lame duck President, without even having been officially defeated, trying to stem the flow of currency
out of his Central Bank.
ASHER: It's interesting because he actually removed capital controls and he became President and now he is re-imposing them. What does that tell
you about the success or lack thereof of his presidency?
SABATINI: It's been very unsuccessful economically speaking. He had promised more responsible fiscal policy, a more responsible economy. As
you mentioned, eliminated currency controls.
What happened was, he tried to do it too slowly and the economy has contracted and we're looking at now 50 percent inflation, and there was
already, as you mentioned, also a run on the currency -- the hard currency in the Central Bank last year that required a $57 billion standby loan
agreement bought from the IMF.
ASHER: So it looks as though Alberto Fernandez is probably going to be the new leader of Argentina. What sort of changes can we expect in terms of
the direction of the Argentine economy as a result?
SABATINI: That is the $57 billion question because no one really knows. People claim he is a moderate. He has some other elements around him, but
his Vice President is the former President -- or the vice presidential candidate is the former President who basically unleashed this entire
populist, profligate policies on the country. And she has surrounded herself with a lot of the old guard.
So it's going to be a struggle between the Vice President and the President of who really directs this country. And so, you know, investors'
skittishness is legitimate and should be taken with a grain of salt because this is a -- you know, Fernandez, the Fernandez couple, if you will, the
presidential and vice presidential candidates had a very testy relationship with the IMF.
So what this will mean in terms of international investors and the IMF's ability to hold them over is really an unknown.
ASHER: And the goal obviously, capital controls is to try and shore up confidence in the Argentine economy. Is that going to work?
SABATINI: No, everyone knows it is a short-term response. Basically, the peso was trading at about 59, a little over 59 to the dollar. It was a
huge slide of over 30 percent from when the primaries were held.
So there's -- you know, investor's confidence is hemorrhaging. All they're trying to do is basically shore up the hard currency they have to be able
to keep imports coming into the country, but it's really -- you know, there's always that element whenever there are currency controls, they have
to be eliminated at one point.
And when that happens, will there be another run on the bank and when will it happen?
ASHER: Argentine economy is in major crisis. There's a recession. Inflation is at what?
SABATINI: It's always evolved. Fifty percent.
ASHER: Fifty percent or so. All right, Christopher Sabatini. Thank you so much. Appreciate it.
SABATINI: Thank you very much.
ASHER: There is a new man at the helm of Saudi Aramco, as the hype builds up about his upcoming IPO. Yasir Al-Rumayyan is the new head of the state
oil giant. He is currently the head of the kingdom's Sovereign Wealth Fund. John Defterios joins us live now from Abu Dhabi.
So john, he is the new head. What more can you tell us?
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Well, as I say, this is a case where the Crown Prince Mohammed bin Salman is flexing his muscle
yet again and exerting control over the cash cow in Saudi Arabia and that is Saudi Aramco, Zain, in the Middle East and particularly, this is very
surprising news within the energy sector and within the OPEC community.
For a bit of context, Khalid Al-Falih has been at Aramco for 40 years; six as CEO, and now is Chairman. Second generation at Aramco. His father was
a key executive there, as well.
As you have suggested, Al-Rumayyan is running the PIF, but joined the Royal Court back in 2015, and I've witnessed it myself. A very close
relationship with MBS, but the distinction here is, he is a banker, and not an oilman.
There is a lot of speculation going on why this happened. It has to boil down to the valuation that the current Prince is looking for, which is $2
All the valuations, I've seen that run from $1 trillion to $1.5 trillion, which is still solid, but Al-Rumayyan running that sovereign fund clearly
wants to please the Crown Prince, is going to gun for that $2 trillion valuation because that's the size of the fund they are aiming for over
time, which, by the way, is double that that we see in Abu Dhabi or Norway, which have set the bar for sovereign funds around the world.
ASHER: And are you, I guess, surprised somewhat at the extent to which the country is trying to clip the wings of Al Falih?
DEFTERIOS: Well, it's a great question that you posed for Al-Falih here because it's not been a good week, Zain. He was running the super
ministry, energy industry and mining, and over the last week, two of those things were stripped away -- industry and mining.
So that was kind of a clear indication that things were changing going forward, but he has delivered right across the board, Zain. A $111 billion
of profit in Aramco in 2018, the most profitable in the world. They absorbed SABIC, the chemical giant for $70 billion. They did a bond in
April with $12 billion, and there was demand for $100 billion. He is a very determined man, we cannot forget.
As I see the OPEC pictures, he is the architect of the OPEC non-OPEC agreement, the close alliance with Russia. One could honestly say, if he
was not in the picture, and the weakness we see in global growth and the financial crisis in Argentina today, you could be revisiting $30.00 a
barrel, like we did in 2016.
And it has to raise a question about what happens in OPEC and whether he still wants to pursue that policy after this dent taking away the
chairmanship in the last few hours.
ASHER: And selling a stake in Aramco, which could be the world's largest IPO is really a method by which Mohammed bin Salman is trying to wean the
country off of oil. Just walk us through that.
DEFTERIOS: Well, there's a whole diversification plan. And ironically, with that question, Zain, the man leading it was Al-Falih because they had
those super ministries, and was driving those diversification and the downstream strategy at Aramco.
I don't want to be cynical, but I think the Crown Prince and he has told this to me and others in briefings in London and at Riyadh, he wants to see
a sovereign fund that can produce returns of 20 percent, if not more, which would be a record and that would drive the diversification.
So he is ambitious. He is putting his guy from the PIF at Aramco and going to aim to do this IPO, which still has a few question marks where to list
and what that valuation will eventually be.
ASHER: All right, John Defterios live for us there. Thank you so much. Time could be running out for Florida residents trying to get out of the
way of Hurricane Dorian's path.
Major airport hubs are shutting down across the state. we will show you where. That's next.
ZAIN ASHER, HOST, QUEST MEANS BUSINESS: Hello everyone, I'm Zain Asher, there's more QUEST MEANS BUSINESS in a moment when major airports on the
U.S. East Coast are shut as Hurricane Dorian approaches the U.S. mainland.
And Mike Pence finds a new ally for the United States and its race with China for 5G supremacy. Before that though these are the headlines for you
at this hour. Hurricane Dorian is being called the strongest storm ever to hit the Bahamas.
Widespread devastation is reported and one death has been confirmed so far. Dorian has been downgraded to a Category 4 storm. But as the U.S. state of
Florida begins to feel its effects, forecasters warn that Dorian is still extremely dangerous.
Rescuers are looking for more than 30 people missing after a scuba-diving boat caught fire off of southern California early Monday. Authorities
report multiple fatalities. They say the crew was rescued and passengers were sleeping below deck and became trapped by the flames.
And we are learning new details about the man police say killed seven people and wounded 22 others in a mass shooting in Texas over the weekend.
A law enforcement official tells CNN that 36-year-old was fired from his trucking job just hours before he went on the shooting rampage. His attack
ended when police shot him to death.
And Hong Kong's leader says she'd quit if she could. That's according to a leaked audio recording obtained by "Reuters". Carrie Lam also apologized
to business leaders for quote, "unforgiveable havoc". Her plan to allow extradition to mainland China has brought months of sometimes violent
And Inter Milan football star Romelu Lukaku confirms he was subjected to racist abuse during a match in Cagliari on Sunday. In an Instagram post,
Lukaku called on football associations to react strongly to discrimination. Cagliari calls the incident absolutely unacceptable and vowed to identify
and ban those responsible.
As Hurricane Dorian approaches, transportation officials have been left guessing due to the storm's uncertain path. Some Florida airports have
decided to shut down operations ahead of the storm. You can see here where they are staying open and where others are closing.
Airports like Daytona Beach International and also cautioned passengers that while it is staying open, it is, quote, "not a shelter". Miami
International Airport is the only major airport staying open in South Florida. It says that's because it's not in the cone of concern.
All right, we are going to continue following this story -- OK, Leyla Santiago joins us live now from Fort Pierce, right on the coast of Florida.
So, Leyla, just set the scene where you are.
LEYLA SANTIAGO, CNN CORRESPONDENT: That's right, I'm actually going to walk you through the last probably 20 minutes. There was sunshine much
like you see right now, and then about 15 minutes ago, we had a downpour. That could be an indication of what's to come, right? As Hurricane Dorian
gets closer and closer.
We are in Fort Pierce which is in St. Lucie County, and you can see that there is a bit of rain -- wind rather, apologies, just in the trees. And I
also -- and this might surprise you, but we also have in some of these boats, there are actually still people inside some of these boats. Now,
officials here are really stressing a sense of urgency.
They have mandatory evacuations for all of the barrier islands here, and as a result, they have opened five shelters at last check, the county
administrator said that there were about 500 people in those shelters. As you mentioned earlier, some of the airports around here have also closed
down the Fort Lauderdale Hollywood Airport shutdown as well as the Orlando Melbourne and the West Palm Beach Airport also shutting down.
The big concern here according to authorities, this is an area that is under a hurricane warning, a tropical storm warning as well as storm surge
warning. There is likely to be a lot of flooding here, and the administrator also said he guarantees there will be beach erosion as a
result of Dorian.
Now, as we have spoken to people who are looking out, checking to see how things are going, much like I see you right now, a lot of people are just
not really sure what to trust with this hurricane because it has been so erratic going one way one minute, another way the next minute, speeding up,
And so, as I've talked to people, there are some folks who are making plans to head out, have already made plans, have already left, and there are
those shelters and then there are some who say look, we go through this all the time, we're just going to make sure we're prepared and we're staying in
our homes. Zain?
ASHER: And Leyla, how hard is it to prepare, just given the level of uncertainty surrounding the storm and its path, speed, direction?
SANTIAGO: Right, well, in terms of preparations, I will say that in this area, we happen to be in a few of the storms -- excuse me, to a few of the
stores and they seem to be pretty well stocked. But it's just monitoring this storm and tracking it that has really been difficult. And I'll use
our team as an example.
I mean, we started in Coco Beach, then we went down to Miami, then we went up to Charleston and now we're back here in Fort Pierce. It just has been
so unpredictable and erratic for meteorologists to predict and much less the average Joe that's just trying to make sure that they are safe, their
family is safe and their property is safe.
ASHER: And who are the most vulnerable, do you think?
SANTIAGO: Right, well, actually according to the studies, 80s, older men. If you look at the research that was done after Hurricane Katrina, and you
look at the research that came after Hurricane Maria when the government commissioned a study of the deaths there, as you know, something our team
investigated as well, typically the most vulnerable during a hurricane are older men.
And so that's why you see a lot of the officials really targeting nursing homes, elderly communities and trying to get -- make sure that the most
vulnerable are taken care of to prevent any tragedies.
ASHER: All right, Leyla Santiago live for us there, thank you so much. Still ahead, no delay even if there's no deal as Boris Johnson stands firm
on Brexit. We look at some of the extraordinary circumstances the British government could find itself in, and what role the queen herself could
eventually play. That's next.
ASHER: All right, let's update you now on Hurricane Dorian, it's been downgraded to a Category 4, but still likely to pack a major punch.
Jennifer Gray joins us live now from the weather center. Jennifer, what more can you tell us?
JENNIFER GRAY, METEOROLOGIST: Zain, this is a monster storm. It is a Category 4, but this is moving at a snail's pace. It's only moving at
about 2 kilometers per hour. The hurricane hunters have been in this storm sampling it inside and out, sampling the atmosphere even around the storm.
They have found 30 -- 139 mile per hour winds.
In fact, we are going to continue to see these winds possibly decrease over time within the next couple of hours into the next 12 to 24 hours. And
Gene(ph), if you can play my graphics for me, it looks like we're having a little bit of an issue.
Let's try this one right here, 240 kilometer per hour winds gusts, 305 moving to the west-northwest at 2 kilometers per hour. Now, on this track,
you can see six hours pass within this loop, and then it just barely moves. It's basically staying stationary, and so the Bahamas are still getting the
winds and the rain from this.
Already seeing some of those outer bands impact the East Coast of Florida, getting wind gusts currently at 43 kilometers per hour, 41 in Fort Pierce
and as this storm continues to pick up forward speed in the coming days, should finally start to move a little faster by tomorrow.
It is supposed to make a very close brush with the East Coast of Florida, it's still a major storm Category 3. So, we're going to get a lot of storm
surge, wind and rain with this all along the Florida coast, and then as it bends back to the east possibly impacting South Carolina as well as North
Carolina and North Carolina is very vulnerable, those outer banks could get Category 2 conditions and that's a very vulnerable area with those outer --
as barrier islands could get a lot of storm surge and beach erosions.
So, we're also seeing hurricane warnings in place all along the Florida coast, hurricane watch in place as well. Forecast wind gusts as we go
forward in time. This is by Wednesday morning and you can see 113 kilometer-per-hour wind gusts in Melbourne.
And depending on how close this comes to shore, we could actually see stronger winds than what these are even forecasting. So, only time will
tell, Zain, as far as what we're going to see across the state of Florida into the Carolinas and even portions of Georgia. This is a big storm that
is still even a little too close to -- it's still a little too soon to even know exactly how close it's going to come to Florida.
ASHER: Right, Jennifer Gray live for us, thank you so much. Right, returning now to our top story, Britain's Brexit battle and one of Boris
Johnson's predecessors had some choice words for the current Prime Minister. This is what Tony Blair had to say.
(BEGIN VIDEO CLIP)
TONY BLAIR, FORMER U.K. PRIME MINISTER: Our government has been taken over by a gang of adventurers. But don't underestimate the appeal of adventure
after a long period of paralysis. The contrast with Theresa May is dark, and many are prepared like him to believe that with belief, it can be done.
It will end.
(END VIDEO CLIP)
ASHER: Boris Johnson might be Britain's head of government, but he is not the head of state, that, of course, is the woman you see right here, the
queen. In Britain, her role in politics is merely that of a ceremonial figurehead, but given the extraordinary circumstances right now, could that
be about to change? Max Foster has more.
MAX FOSTER, CNN CORRESPONDENT (voice-over): Does it get any more British than this? The monarch carried by a horse-drawn procession to parliament to
speak from her throne.
ELIZABETH ALEXANDRA MARY WINDSOR, QUEEN OF THE UNITED KINGDOM: My government will use the opportunity of a strengthening economy.
FOSTER: Her voice, but not her words because the queen is simply reading a speech written for her by the government. She's mastered the skill of
keeping her thoughts to herself. We never have any idea what she thinks, and that's one of the secrets to her longevity.
She never offends because she never expresses a political view, allowing her to retain cross-party support in parliament which is the one body with
the power to take the crown from her. High above her in the Victoria Tower, centuries of legal papers and parchments are kept, but none are
entitled the constitution because there isn't a written version.
All these laws taken together along with various conventions form an unwritten constitution that's tested from time to time to keep it relevant.
No time more so than now.
(on camera): Well, if parliament is the highest authority in the land, and the queen is accountable to it, then so is the government's. And the
convention that protects the queen from accusations of political interference is that she only acts on the advice of a prime minister. And
the most recent example of that was when Boris Johnson asked her to approve a suspension of parliament where she agreed to without questioning it.
JOHN BERCOW, SPEAKER, U.K. PARLIAMENT: There's far too much noise in this chamber.
FOSTER (voice-over): So far the system is working, but it could grind to a halt if one of two things happen this week. If parliamentarians want to
block a no-deal Brexit, they could pass a bill to that effect. But then, Boris Johnson may refuse to send it to the queen for approval or they could
call a vote of no confidence in Boris Johnson's government and he could refuse to resign.
(on camera): Both of those scenarios are being openly discussed in Westminster, and they could ultimately end up here at Buckingham Palace at
the desk of the queen. There is nowhere else for them to go, and should be left in the horribly uncomfortable situation of having to choose between
her Prime Minister's advice and the will of parliament.
That place is right in the middle of the biggest U.K. political crisis in modern times, and exactly where she doesn't want to be. Max Foster, CNN,
Buckingham Palace, London.
ASHER: All right, let's see how European markets ended the day. There were slight gains across the board with the FTSE 100 leading the way,
investors in London are appearing to defy ongoing concerns over Brexit. Elsewhere, manufacturing data in both China and Europe showed a slight
improvement weighing stocks.
Asian markets were mixed Monday as more U.S.-China tariffs kicked into gear, it is the fourth time tariffs have gone into place since March 2018,
this time though, it's a whole different ball game. Anna Stewart has more.
ANNA STEWART, CNN REPORTER (on camera): It may sound like just another round in the tit for tat U.S.-China trade war, but this latest round of
tariffs is really different. The Trump administration has up until this point slapped tariffs on imported goods, but largely affected manufacturing
and supply chains.
Take a look here because this time the list includes lots of consumer goods. The end product, clothes, diapers, shoes, meat and dairy products,
smart watches, flat screen televisions, in total, the U.S. is targeting trade worth $300 billion in this round.
Now, part 'A' kicked in on Sunday, but part 'B' actually won't start until December 15th. And that so is not to hit Christmas spending which is a
huge important season for U.S. retailers and the wider economy. And that's the thing to note here. This round of tariffs is designed to hurt Chinese
businesses, hurt the Chinese economy, but it's also going to hit the U.S. consumer.
Now, the bank JPMorgan Chase says U.S. tariffs on China have actually already cost the average American household $600 a year. They think that
this latest round will raise that to $1,000 a year. Now, when all of the tariffs from the U.S. are implemented, it means that actually all Chinese
imports worth some $550 billion will be subject to tariff.
Meanwhile, China implemented its own tariffs in retaliation Sunday, 5 percent to 10 percent on around $75 billion worth of U.S. goods. Now, that
included soybeans, coffee, Whiskey, and for the first time in this trade war, U.S. crude oil.
China also plans to resume tariffs on U.S. imports of cars and car parts in December. But of course, there's still some hope that some sort of
political resolution will be reached before then, and the U.S. president says that talks between his administration and China will still take place
later this month. Anna Stewart, CNN, London.
ASHER: The United States is in a battle for 5G supremacy. Vice President Mike Pence just got a new partner in the fight. We'll explain after the
ASHER: The United States has just got another partner in its battle for 5G supremacy. Poland and the United States will now work together on 5G
technology. The deal was announced during Vice President Mike Pence's visit to the country.
And it comes as Huawei looks to make in-roads into Europe's 5G market much to the dismay of Washington. And even while countries jostle for position
in the 5G race, tech companies are already rolling out in major cities and it could make a major difference to your smartphone experience. Samantha
Kelly has more.
SAMANTHA KELLY, CNN BUSINESS TECH EDITOR: So this is an actual 5G cell site location here in the east village. You can see that the 5G site is
sort of a small rectangle on top of a longer vertical rectangle, and there are other 4G sites around it.
The 5G team mobile site allows sort of this high-band millimeter wave to kind of cast a spectrum down, and you are able to access these higher
speeds in the vicinity around it. So, what is 5G anyway? It's the next generation or G of cellular service.
Two-G was more focused on text messaging, 3G was sort of the boom of apps, 4G introduced faster speed, so it could handle Uber or FaceTime. Now, 5G
is supposed to be 10 times as fast, and it will be able to support self- driving cars, robotic surgeries, even tooth brushes that can tell you when you're sick.
You can see how close we are to the 5G cell site right there in the building above the Starbucks, but I can't even get on the network. I'm
just only a couple of 100 feet away -- oh, wait, OK, I got it.
(voice-over): We did a test on T-Mobile's 4G and 5G connections in the park. The 5G network was significantly faster, but it didn't quite hit the
high speeds I saw on other networks. So, I'm getting really great 5G service right here at the Starbucks and the 5G cell site is right above me,
but let's see what happens if I go inside.
And there we go. Just -- it just dropped just now.
(on camera): Some people might think that they're already using 5G. On my phone, actually it says 5GE which stands for 5G Evolution. You're using
much faster network, but you're not actually using 5G. That's actually because you need one of these phones. This is a Samsung 5G phone. It
There are other options on the market too, LG has one that's almost a $1,000, that's still really expensive for a network that might not work
that great for you, and you might not even have access to it. So, the hyper5G is high and for good reason.
There are so many different applications that's really going to change probably the way we live. But for now, service is super spotty, it's
really limited, it's expensive, and it's going to take so long for these companies to truly put the equipment on all the different buildings and the
lamp posts across the country. So you might just want to sit tight and wait for them to work out the kinks.
ASHER: There is no trading on Wall Street this Monday as the U.S. marks the Labor Day holiday, but investors have been keeping their eye on the
British pound which sank on speculation that Boris Johnson was about to call a general election.
He of course did not when he made a speech earlier outside Number 10. But analysts think they could still be on the cards for October. This shows
this is how the pound is doing right now. Take a look, it is still clearly in the red. Let's check in on the markets in London, the FTSE 100 ended
the day up more than 1 percent despite all of the Brexit drama we've been seeing and a new round of trade tariffs between the U.S. and China that
just went into effect.
Boris Johnson could face a tough day in parliament on Tuesday. The leader of the opposition Labor Party says he would try to block a no-deal Brexit
in parliament. The party is not disclosing its specific plans yet, but Jeremy Corbyn says that he is ready for anything.
(BEGIN VIDEO CLIP)
JEREMY CORBYN, LEADER, LABOR PARTY: The vote of no confidence is very much there on the table. It's not an either or both options are absolutely
there. And we will do everything we can in the coming weeks to prevent a no deal. We want a general election so the people of this country can
decide their future.
(END VIDEO CLIP)
ASHER: And we are also continuing to track the path of Hurricane Dorian as well. The Category 4 storm is still battering the Bahamas as it slowly
creeps towards the United States at about 1 mile per hour. It is currently 105 miles off the coast of West Palm Beach, Florida, and it's predicted to
turn north late Monday, staying just off of Florida's coast.
And that is QUEST MEANS BUSINESS, I'm Zain Asher in New York, "THE LEAD" with Jake Tapper -- rather Brianna Keilar is next.