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Quest Means Business

Trump Leading Polls in Florida; U.S. Trade Deals; Press Drags Queen into Brexit Debate; Trump Shows Off Products to Defend His Business, But Are They Real?; Michael Horn CEO of Volkswagen American is Stepping Down; Square's Earning Top Expectations; Square Stock Up Sharply in After-Hours Trading; "Go" Champion Duels Google AI for $1 Million Prize; Lily Cole Says that Illiteracy is a Barrier to Independence for Women. Aired 4-5p ET

Aired March 09, 2016 - 16:00   ET


POPPY HARLOW, HOST: U.S. stocks are going nowhere as trading comes to an end on Wall Street, at least an end for the day. It is Wednesday the 9th of

the March. Tonight it is the economy, stupid. You've heard that before. Voters in the United States show their furry at America's trade policy.


HARLOW: The British press drags the Queen into the "brexit" debate. Buckingham palace not at all amused.

And Google passes go. How a computer beat the hardest board game ever invented.


HARLOW: I'm Poppy Harlow, in for Richard, and this is "QUEST MEANS BUSINESS."

Good evening. Welcome to the program tonight. American voters sent a loud and clear message at the ballot box, we are sick of America's free trade

policies. Tuesday night's primaries in America's industrial heartland show deep and growing resentment and discontent with the state of the U.S.



HARLOW: Donald Trump swept to victory in Mississippi and Michigan vowing to overturn the global economic order and bring jobs back from overseas.

A much bigger surprise was Bernie Sanders win a huge upset against Hillary Clinton, in Michigan. The Vermont senator blasted Clinton in her commitment

to free trade agreements with the rest of the word.

SEN. BERNIE SANDERS, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: What tonight means is that the Bernie Sanders campaign, the people's -- the revolution -

- the people's revolution that we are talking about, the political revolution that we are talking about, is strong in every part of the

country. They are tired of a rigged economy in which people in Michigan, people in Illinois, people in Ohio are working longer hours for lower

wages, worried to death about the future of their kids.

DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: On trade, I am a free-trader, believe it or not. But I'm also a smart trader. We cannot let

China -- and I like China, they're wonderful, but their leaders are too smart for our leaders. China has taken millions of jobs, thousands of

factories. What they've done to us -- it's actually -- I thought about it the other day. It's the greatest theft in the history of the world.


HARLOW: The economy is by far the most important issue for voters in both parties.


HARLOW: Take a look at this brand-new CNN ORC poll in Ohio. 42% of respondents say it is the number one issue in this Presidential race.

Immigration, national security those do not even come close. Voters in Ohio showing a serious discontent with American free trade policies.

Also a majority of Republican voters in Michigan think that trade with other countries takes away American jobs. Most of those voters say they

would vote for Donald Trump.

On the free trade front, Democrats agree even more voters thought trade with other countries takes away American jobs. 60% of those respondents on

the Democratic side say they are backing Bernie Sanders. His campaign ad in the state of Michigan clearly resonating with them.

[VIDEO CLIP] Millions of good jobs lost, communities devastated, the jobs moved overseas. Only one candidate for President has consistently fought

trade deals that ship Michigan jobs overseas. Bernie sanders. Sanders opposed the disastrous NAFTA trade deal. Opposed special trade status with

China. Now he is opposing the trans-pacific trade deal. While others waffle Bernie is fighting hundreds of thousands in new jobs losses. For jobs, for

us, Bernie.

SANDERS: I'm Bernie Sanders and I approve this message.


HARLOW: Free trade has been a cornerstone of President Obama's economic policy and American trade policies frankly for decades.


HARLOW: The United States is in more than a dozen trade deals with 20 countries some of those you see there in yellow. And there are two more

blockbuster deals in the works with Asia. Those are represented in red. And the European Union represented there in light blue.


HARLOW: Here to talk about the big picture what this means for this election is Mohamed El-Erian; he's the Chief Economic Advisor for Allianz,

the author of a brand new book, "The Only Game in Town." And CNN global economic analyst Rana Foroohar, author of the new book, "Makers and

Takers." Thank you both for being here very much.

Rana, let me begin with you. When you look at the polling that we just issued this morning, CNN just put out, among American voters who think

international trade takes away Americans jobs 56% of those people back Sanders compared to 43% for Clinton. Is this a referendum on President

Obama and the past eight years and his policy what he's built up?

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: I would actually say it's a referendum on a longer time period. I think that really since even the

early '90s there's been sort of growing sense as we've cut a number of trade deals that you know globalization works at global level and we know

that it's actually increased wealth at a global level but within countries. And not just the U.S. but in many countries it's actually increased the

divide between the has and the has-not in certain areas.

Now we know at a net level sometimes jobs are created, great jobs, higher level jobs. But for a lot of people in states like Michigan they haven't

felt that. And particularly since 2008 they haven't felt the recovery.


HARLOW: And particularly also as we've frankly seen look at what has happened in Michigan in that period of time in terms of the unions, right.


HARLOW: That's completely changed under their new Republican governor, right. So Mohamed to you, do you -- I'm interested in what you think this

says about the effectiveness of President Obama's economic policies both for the U.S. and also in global terms. And why Americans aren't buying into

it now.

There was this fascinating articles in the times called "Why Trump Now?" and it dug into this. Why now?

MOHAMED EL-ERIAN, CHIEF ECONOMIC ADVISOR, ALLIANZ: So I would emphasize what Rana said. When the economy does not grow and when the fruits of the

little growth that you get go predominantly to a small segment of the population, people get angry. And what happens when people get angry? They

blame others. And what's the easiest thing to blame? Trade. So what you're getting is the anger being expressed on trade. I don't think that what

we're going to ends up with is protectionism. I think that what we're going to end up with is huge emphasis on fair trade as opposed to free trade.

HARLOW: And the difference with Rana for the American voter, if you're a candidate on the stump and you see that clearly this worked last night in

the primary so you are going to emphasize fair trade as Mohamed says. How do you do that and differentiate that for the electorate?

FOROOHAR: Well, it's interesting. I agree with Mohamed. I think that what it's going to mean is that policy makers, politicians are going to be

starting to message that companies shouldn't just outsource jobs to the cheapest place. And that they should at this about local ecosystems, they

should think about where workers have skills that might be great for their particular kind of firm. I think that you're going to see more interaction

between the public and private sector creating those kinds of things.

Now Obama was actually quite big on. But I think the moment is such now that there's a real drive behind this. And many countries are in the same

boat. I just want to add you know when Trump says that oh China has had the biggest theft of our jobs in years. Well China is actually worried about

losing jobs to other parts of Southeast Asia. You know everybody is in the same boat.

HARLOW: When you also look at the economy Mohamed it's hard to argue that it's doing poorly. The American economy, you've got gas at you know $2.

You've got unemployment under 5%, you've got growth of about 2% a year, so all those headline numbers are good. The one point that Republicans can

make is the wage growth the fact that wage growth has been stagnant so long. The typical American family if you look at the numbers is taking home

about the same amount of money now as they did 20 years ago. Does this come down to a wage growth fight?

El-ERIAN: It comes down to the issue of inequality and what I've called the trifecta of inequality. Not just income and wealth. But a sense that

inequality of opportunity is becoming a problem. And that for Americans is a big issue. Now why have we had that? There are structural forces.

HARLOW: Technology.

EL-ERIAN: Technology being one Poppy but we have also paralyzed ourselves. We do not have an active fiscal policy and we rely on Central Banks who

have no choice but to go through the stock market to promote --

HARLOW: But there's only so much Central Banks can do that will frankly help you know the half of Americans that aren't invested in the market et

cetera, and the fact that companies still have so much money sitting on the sidelines and aren't hiring in ways that they did.

So you bring this up. I want to pull a quote up from that "New York Times" article that I mentioned, it stood out to me a lot.


HARLOW: The article was called "Why Trump Now?" And it reads already disillusions with the Democratic Party the white voters became convinced

that the mainstream of the Republican Party failed them not only on economic issues but on cultural issues as well. And it goes on to say the

only group to grow larger after 2,000 was households with income of $35,000 or less.


HARLOW: These are the angry voices we are hearing that are coming out to the polls many of them for the first time.

FOROOHAR: That's totally true. And you know you can see that in Michigan. If you look at the fact that Bernie Sanders came into Michigan and took a

lot of African-American vote that had been Hillary's -- that was supposed to be her area. Well why did that happen? Well in part because African-

Americans lost so much in the housing crisis. You know African-Americans post 2008 had liquid wealth 200, compared to $23,000 for whites. That's why

Bernie Sanders is doing so well in Michigan.


HARLOW: And Hillary Clinton has done so well with the African American vote, much better than Senator Sanders up until now. We'll see if momentum

shifts on that.

You Mohamed write about this in the book "The Only Game in Town" not only about sort of the limited ability of Central Banks and our reliance on

them. But you also talk a lot about rising inequality. And you say today's economy is beset by low growth and rising inequality and you say the only

solution to that is inclusive economic growth.


HARLOW: That sounds like a great line. What does inclusive economic growth actually look like in perhaps the next administration? How do you do that?


EL-ERIAN: So first it means promoting two engines of growth, not relying on finance which has been co-opted by a small segment of the population. But

really focusing on education, on infrastructure, on labor rich training, things that we know promote economic growth and promote economic growth


Second realize the fiscal policy has a re-distributive element to it and not be shy about night it. You know -

HARLOW: -- It doesn't have to be Robin Hood.

EL-ERIAN: Yes, it doesn't - I mean what's clear is this issue has become an issue both for the Republicans and the Democrats. It's not just the

left, it's both parties now realize that this is a big issue facing the U.S. and not just the U.S. it also explains the emergence of anti-

establishment movements in Europe.

HARLOW: And what's so frustrating I think Rana for Americans is you've got about half of Americans who do not have a penny in the market. They don't

have a penny through a 401k, an IRA, their own investment et cetera. So when we look at today and the market today and we look at today marks the

seventh birthday if you will, of this bull market right, and you look at the S&P up 194% since 2009, there are so many people that that doesn't

affect at all.

FOROOHAR: Absolutely. And this actually goes to what Mohamed was saying and is in his book as well. That when you have Central bankers at the only game

in town as the only ones who acted this is what you get, you get asset bubbles, you get stock wealth that enriches you know all of us and many

other wealthy people but not the majority of the population. And it's a huge issue. It's why we have the polarized politics we do.

HARLOW: So what can the private sector do? I interview a lot of CEOs who tell me there are increasingly frustrated with the government, right, so

they don't want to run for office. They think they can be more effective Mohamed from their corner office right, on social issues, et cetera. And

we've seen that. What can they do on the job front while remaining competitive because they do have a fiduciary responsibility to their

employees and to their shareholders.

EL-ERIAN: So there's a couple of good news. One is that social responsibility has become the key issue for many more corporations. Why?

That's what the employees want. Especially the millenniums. So they're realizing that social responsibility is part of running a good company.

The second element is the corporate sector has a ton of cash Poppy sitting in bank accounts earning either zero percent or they have to pay interest

for the banks to keep it. The key issue is unleashing this to various private partnerships. And what we need out of the politicians is not a big

policy bank, it's a small policy bank. Because if business people see clarity in what's ahead the cash that they deploy can do a lot of the heavy

lifting. And that's - and that's one reason to be optimistic. But it needs the political system to deliver at least a small bank.

HARLOW: Finally before we go very quickly, how concerned Rana to you first, then Mohamed, should Hillary Clinton's camp be right now seeing what they

saw in Michigan? Seeing this focus on trade?

FOROOHAR: Concerned. I think particularly if Sanders gains traction in the rust belt. Even if he doesn't win the nomination ultimately that's going to

be an important signal about how the generals might go.

HARLOW: And Ohio is a big question mark.

EL-ERIAN: Yes, and we'll see - I mean the next couple of weeks are going to be critical and also important for markets who so far haven't really

been able to react because there are so many potential outcomes that they've just been paralyzed.

HARLOW: Right. Mohamed El-Erian, thank you so much. Rana Foroohar, thank you congrats to both of you on your books. You make me feel not very

accomplished. Congrats about the view. Bernie Sanders and Hillary Clinton will go head to head just a few hours from now. CNN will simulcast the

Univision Democratic Debate, it is in Miami, that is at 2:00 a.m. Thursday in London and it will be right here on CNN.

The debate over Britain's future in the European Union already tense.


HARLOW: And now even the Queen has been dragged into it all. The details next.



HARLOW: Buckingham Palace has complained to Britain's press watchdog over a tabloid controversial front page I am sure you have seen it by now. The sun

newspaper has claimed that Queen Elizabeth is in favor of the U.K. leaving the European Union in the country's upcoming referendum. Our Max Foster



MAX FOSTER, CNN CORRESPONDENT: Well the contention issue has even reached the Queen. The Sun citing what it says is a high reliable source claims the

bust-up between the Queen and the then Deputy Prime Minister, Nick Clegg, happened at a Windsor Castle lunch in 2011.

The Queen reportedly said the E.U. was heading in the wrong direction. According to the Sun, the source said people were left in no doubt about

her views on Europe.

Clegg himself has tweeted today, saying the Sun's story is nonsense. He added "I have no recollection of this happening and it's not the sort of

thing that I would forget."

Buckingham Palace has also dismissed the story saying the Queen remains politically neutral as she has for 63 years. "We will not comment, they

said, on spurious anonymously sourced claims. The referendum is a matter for the British people to decide."

And this cuts to the very heart of the Queen's role, which is to represent the entire country and to stay above politics. She obviously has views but

would never want to publicize them. Her grandson Prince William got in a bind last month when he gave a speech at the Foreign Office where he said

Britain's ability to work to with other nation is the bedrock of our security and prosperity.

That prompted speculation that he was endorsing the campaign to stay in the E.U. His office had to move to deny he was referring to Europe at all.

This summer's referendum on E.U. membership has become a highly divisive debate in the U.K and the royal family is struggling to stay out of it.

Max Foster, CNN, London.


HARLOW: Well members of the British royal family are not the only ones being dragged into the increasingly heated debate over Britain's place in

the E.U.

The U.K. Lawmaker -- a U.K. Lawmaker is calling for the Governor of the Bank of England, Mark Carney to resign that is after Carney said that a

"brexit" would produce a risk financially to the U.K.s stability. Critics argue that jeopardizes his political neutrality.

The head of a group representing larger British businesses has resigned after saying he wants to see Britain leave the E.U. The group, The Chambers

of Commerce itself, is neutral. And Prime Minister David Cameron told parliament just a few hours ago that he will not resign if Britain does

vote for a "brexit" even though he wants the U.K. to remain in Europe.

We are joined by Quentin Peel from London, he's an Associate Fellow at the Think Tank Chatham House. Thank you so much for being here sir. And you are

a journalist of many many years and much experience. So put your journalist hat on for a moment and let's talk about how unusual it is for the Queen to

take action against the newspaper. Sort the significance of this, "regal dispute."

QUENTIN PEEL, ASSOCIATE FELLOW, CHATHAM HOUSE: Well it's the first time she has ever done it. The first time she has ever formally complained. The

Queen is normally far too gran to do anything like this. Just tries to ignore things she doesn't like.


PEEL: But this time I think that they feel really actually embarrassed by it. I mean this splash headline in the Sun today, "Queen Backs Brexit" its

complete nonsense really. The word "brexit" didn't exist when the alleged conversation took place. But I'm sure the Sun newspaper doesn't mind if it

is exposed as nonsense at the end of the day because it's great publicity for the Sun.


HARLOW: But there is quite a bit of liability here. I mean you've got the editor of the Sun coming out and saying they have "two different and

impeccably placed sources" they say they will vigorously defend this -- their paper against the complaint. What do you think they need to be

successful in that? To actually defend successfully?

PEEL: Well, they can claim that their sources -- they don't have to identify their sources.

HARLOW: Right.

PEEL: I note that they said they were impeccably placed. The use of the word placed is slightly odd. Why didn't they just say they were impeccable

sources? But nonetheless, I think this is going to stick, to some extent, that there will be people who say yes, I think the Queen is probably -- is

rather suspicious of Europe. Why? Because what we're seeing in this debate is really a battle for the soul of the nation. And if anybody is the

guardian of the soul of the nation, I suppose it's her Majesty, the Queen.


HARLOW: Absolutely. And when you look into the sort of politics surrounding this, the Governor of the Bank of England, Mark Carney warning this week

that a vote by the British people to leave the E.U. he said it would hit the country's economy. He talked about the impact of foreign investment on

the pound. He talked about the banks' potentially some of them leaving London's financial capital. Some MPs are now calling on him to resign. I

just wonder your opinion. Do you think he crossed the line with those statements or was he simply laying out the financial reality as he sees it?

PEEL: I think he was very careful in what he said. Undoubtedly what he said infuriated the campaigners for Britain to leave the European Union because

he was really saying the deal that David Cameron won from his partners in the European Union for more assurances, for the state of the City of London

-- that had reassured the Bank of England. So he went quite a long way to give David Cameron his backing.

Having said that, he was pretty careful and i think an overwhelming majority in the city would agree with him. He was quoting banks as saying,

look, if Britain leaves the European Union, we will move at least some of our jobs out of the City of London and into the European Union because

otherwise we won't be able to carry on doing business. It was really a statement of the obvious. But what I think you've got in this campaign now

is you've got the economic arguments on the whole in favor of those who want to stay in the European Union. And you've got the emotional arguments

on the other side, those who want to quit.

HARLOW: Quentin Peel, it is a fascinating time, certainly, to be a journalist and living through all of this. Thank you so much for joining us

with your perspective this evening.

PEEL: Thank you.

HARLOW: Uncertainty over the U.K's future within the European Union could have a negative impact on the FTSE for weeks and weeks to come.


HARLOW: How are markets reacting? On Wednesday at least, London as well as other European markets actually had a pretty quiet day, some modest gains

across the board as you see there, nothing substantial. Trading was suspended in Abu Dhabi on Wednesday.


HARLOW: We will show you the wicked weather that has wreaked havoc across the Gulf.





HARLOW: Trading in Abu Dhabi was canceled on Wednesday amid a storm that is battering Gulf States. A power failure forced an early closure for the

stock exchange. The city's airport also temporarily shut down. Jon Jenson has more on the impact of this extraordinary downpour.

JON JENSON, CNN REPORTER: The forecast called for rain but the ferocity of the storm tack many in the UAE by surprise. Massive downpours swept across

this desert nation this week with more rainfall than the UAE normally gets in a single year.

The worst of it hit Wednesday with gale force winds slamming parts of Abu Dhabi. This is really something unprecedented. You can see the wind and the

rain just blowing down the roof, knocking plants and tables down. On our roof, the roof next door, this is something we've never seen before out



Trees were uprooted across town. Security services raced to unblock roads. No injuries were reported, but there was flooding in several buildings. Abu

Dhabi's schools closed, and the airport, too, briefly. The full damage has not yet been assessed. But with more rainfall on the way, meteorologists

say this desert rainstorm could be one for the books.

Jon Jensen, CNN, Abu Dhabi.


HARLOW: On the other side of the Gulf is Iran, newly released from those international sanctions. President Hassan Rouhani's Chief of Staff says his

country's first priority economically is to get its oil market share back and that the rest is up to OPEC to fix the falling price of crude. Here's

Mohamed Nahavandian speaking with our very own Christiane Amanpour just a short time ago.


MOHAMED NAHAVANDIAN, PRESIDENT HASSAN ROUHANI'S CHIEF OF STAFF: We have made this clear to everyone that the first step Iran is going to take is to

get back to its market share. Those who caused this price decline, they are responsible for it. They have to do something to correct that. And I think

that is being understood by other producers.

CHRISTIANE AMANPOUR, CNN CORRESPODENT: So where do you see your next big market? Is it the East? Far East?

NAHAVANDIAN: We have - we have already started the exporting to Europe. And we think that the energy security in Europe.

AMANPOUR: And you think that will be fine? OPEC will accommodate all of this?


AMANPOUR: You have no doubt about that?


AMANPOUR: And in terms of what President Rouhani wants to do beyond reforming and opening up and attracting foreign investment, obviously he

wants to also open up private sector in Iran which has been heavily dominated by vested interest. Revolutionary guards are not just military,

they're in economic power as well as everywhere else. And they have major hold on huge segments of the economy. They have no interest in seeing their

hold busted open for competition. That's going to be tough, isn't it? Especially as they are launching missiles.

NAHAVANDIAN: One of the priorities in the economic policy of President Rouhani and the new administration has been empowerment of the private

sector. And this principle is supported by supreme leader in his policy which was announced.

So by widening the area of presence for private sector, and increasing the GDP, when the economy grows bigger and bigger, the private sector's role

will be more and more. The government has already started privatization. The problem in the practice was that -- in the privatization which occurred

before this administration, part of that went to pseudo private sector, some public organizations. But now that is being corrected.


HARLOW: Well, red meat was more than just a metaphor at Donald Trump's victory rally on Tuesday evening.


HARLOW: There was steak, and wine, and water. And a series of claims that perhaps should be taken with a pinch of salt.



[16:32:01] HARLOW: Hello, I'm Poppy Harlow in for Richard Quest. Coming up in the next half hour of QUEST MEANS BUSINESS. Donald Trump has been

touting Trump water and Trump wine and so we went out and bought some for ourselves. We look at the validity of some of his claims. Also it has

taken years, but a Google computer has finally beaten the world champion of the complex board game Go. I will try it out for myself with one of

America's best players live here in the studio. Before that though, here are the top news stories that we are following for you at this hour.

Israel is condemning Iran's ballistic missile tests. Iran fired two ballistic missiles today and the missiles reportedly bore an anti-Israel

message. Iran claims those missiles tests are simply for defensive purposes.

Meantime, Nancy Reagan's casket has arrived at the Ronald Reagan Presidential Library in California ahead of her funeral on Friday. The

former U.S. first lady will lie in repose for two days. Ms. Reagan died Sunday of heart failure. The current First Lady, Michele Obama, former

First Lady, Hillary Clinton, they will both attend the funeral.

Buckingham Palace has issued a complaint about front page story in the Sun newspaper today, saying that the Queen thinks that Britain should leave the

European Union in a Brexit. A statement said that Queen Elizabeth remains politically neutral and it is up to the British people to vote on the issue

come June.

George Martin, the music producer, known as the fifth Beatle, has died. Martin signed the Beatle's into their first recording contract that

produced many of the band's largest hits. He was knighted by Queen Elizabeth in 1996. He died at his home in London on Tuesday. He was 90

years old.

Carly Fiorina says Ted Cruz can beat Donald Trump, and he's the only one who can do it. Hewlett-Packard's former chief executive has joined the

company's current CEO Meg Whitman in opposing the Republican front-runner. Trump famously criticized Fiorina's appearance early in the primary season.

You'll recall that. While Whitman has questions Trump's business acumen, calling him unfit to be president. Speaking at rally for Ted Cruz today,

Fiorina took that one step further. She said she is horrified by Donald Trump.


CARLY FIORINA, FORMER REPUBLICAN PRESIDENTIAL CANDIDATE: We're not going to beat Donald Trump by having leaders in our party tsk, tsk over our

voters. We're going to have to beat Donald Trump at the ballot box. The only guy that can beat Donald Trump is Ted Cruz.


HARLOW: So far there is no sign of a Trump slow down though. Polls show he is leading in Florida less than a week before that winner take all

primary. A Trump win in Florida could deal a fatal blow to Florida Senator Marco Rubio. Donald Trump spoke with Anderson Cooper just a short time



ANDERSON COOPER, CNN ANCHOR, ANDERSON COOPER 360 : A huge night last night. Did you have any idea that you were going to win as big as you did?

DONALD TRUMP, U.S. REPUBLICAN CANDIDATE: Well I felt good. Mississippi I was there three or four times. And it was like a love fest. So I felt

very good about it. Michigan has been great. It's been great for me for a long time. I have so many friends there. And I had no idea it would be

that big.

[16:35:00] COOPER: Do you think it's the message on trade particularly in Michigan that was effective? Because we see Sanders winning as well there

with a very similar message on trade.

TRUMP: I think they want strength. I think they want military. I think they want to take care of vets. I think they hate Obamacare. But I would

say ultimately it's about jobs and the economy. And you know, Michigan has been stripped. You look at those empty factories all over the place. And

nobody hits that message better than me.

COOPER: Two new polls out today, Quinnipiac, also CNN/ORC both showing essentially the same thing. You are way ahead here in Florida almost I

think two to one against Rubio. And even in Ohio, leading Kasich six points or seven points in each poll. If you win Florida, if you win Ohio,

is it over?

TRUMP: I think so, yes. I think if I win those two I think it's over.

COOPER: If you win Ohio, Kasich drops out, and you win Florida and Rubio's gone. And it's just you and Cruz, if you don't get all the delegates

needed to win by the convention --

TRUMP: Well, I think if I win Ohio and if I win Florida, you have got to be pretty much assured of getting it.

COOPER: You think you will get all the delegates?

TRUMP: I think so, yes. I really think so. I don't see the convention going that route. I see probably getting the delegates. It is a like the

fighters. That's the ultimate way of doing it. You knock them out. If you knock them out, nothing more can happen.

COOPER: You would go for a knock out.

TRUMP: I'd rather go for a knock out.


HARLOW: Well, it was part victory speech, part infomercial. Donald Trump celebrating his primary wins on Tuesday night all while standing next to a

table piled high with Trump branded merchandise. It was a response to Mitt Romney and others who questioned his claims about running successful



TRUMP: So you have the water. You have the steaks. You have the airline that I sold. I mean what's wrong with selling? Every once in a while you

can sell something. You have the wines and all of that. And Trump University, we're going to start it up as soon as I win the lawsuit? Does

that make sense? I mean, that's it. OK.


HARLOW: Here to separate the sizzle from the steak, and fact from fiction, our very own Clare Sebastian who has been running all over New York City

getting all of these items, and we're going to pore through them. You got a lot successfully. Let's begin. What did you find?

CLARE SEBASTIAN, CNN REPORTING: Well, we're going to start, Poppy, with the one I didn't get, and frankly the most interesting to have on display

at a political rally, the raw steaks. Now Donald Trump did used to sell Donald Trump steaks. We found it on a website called the Sharper Image.

Which as you know, sells high tech and lifestyle products. A rather unusual item for them. It is still on the site, but has been discontinued

they told me in 2008. They still do have a rather bizarre tribute to him though. Take a listen.


TRUMP: Just raise the stakes. Trump Steaks are the world's greatest steaks. And I mean that in every sense of the word.


HARLOW: OK. So Claire, there are the steaks he had next to him last night. Do we know if those are even Trump steaks?

SEBASTIAN: Well, I mean they have been discontinued, Trump Steaks. Of course that bares a question where these rather nice looking raw steaks

came from. There's been a lot of rumors online that they came from a Florida company call Bush Brothers. That's a wholesale meat company. I

contacted them. They would not confirm or deny whether those were their steaks, but they did say that they are a supplier to the Trump Hotels and

Resorts in Florida.

HARLOW: All right, so what did you find? Because you have a bag of --

SEBASTIAN: Yes, we had a rather successful shopping trip in New York City today. As you see the Trump branded bag.

HARLOW: They are from Trump Tower on Fifth Avenue.

SEBASTIAN: Exactly and we found Trump wine.


SEBASTIAN: So now I'm going to tell you a little bit more about Trump wine. This is actually from a winery owned by Eric Trump, Trump's son that

is based in Virginia. They produce about 40,000 cases of this and this is one of the best sparkling wines.

HARLOW: So it's quite successful.

SEBASTIAN: It's quite successful. They also have around 100,000 visitor every year. But this is Eric Trump's business, not Donald Trump.

HARLOW: No Donald, OK.

SEBASTIAN: Nor is it, as Donald Trump claimed, the largest winery on the East Coast. It is not. Plenty of other wineries that have more wine.

Particularly we found in North Carolina that more than 10 times the number of cases per year.

HARLOW: So you might want the drink the whole thing before the show.

SEBASTIAN: Yes, I wanted to. The team had test out the products. Here we are Poppy, the -- here in the bag -- to the Trump water. We've got a few

bottles in here.

HARLOW: It just becomes a question is this actually his water? Or are they just putting the Trump label on mass produced water that's sold to

anyone who wants to put their name on it?

SEBASTIAN: Well, that's the key question, Poppy. This is on the bottle it says, bottled in Willington, Connecticut. We found a bottling company in

Willington, Connecticut, called Village Springs, and they did confirm to us that they do produce and bottle this water. It simply carries the Trump

brand, and it's sold in the Trump properties like Trump Tower and the hotels.

HARLOW: So they sell that to a bunch companies who put their own logo and branding on it.

HARLOW: You can put your branding on it. Yes, that happens with a variety of different products. That is Trump water but he does not produce that.

Now we come to the question of the magazine that he held up.

HARLOW: Right. Because Mitt Romney had said this magazine went bust, et cetera, and Trump is saying it didn't.

SEBASTIAN: Well, Mitt Romney is correct. There was a Trump Magazine that did fold in 2009. That was kind of a luxury lifestyle magazine. But the

magazine that Trump was holding up, you can see it there, this is the same thing. It's called the "Jewel of Palm Beach."

[16:40:00] It's produced by a company called Palm Beach Media Group. It's an annual publication exclusive to Trump's Mar-a-Lago Resort in Florida.

It's also in the hotels in New York, which is where I picked up this rather well-thumbed copy today.

HARLOW: So it comes out once a year.

SEBASTIAN: Once a year.

HARLOW: And no one buys it.

SEBASTIAN: It's free. Like any magazine you'll get a hotel.

HARLOW: So it actually cost him money.

SEBASTIAN: Well it is part of the branding around the hotel. It's got lots of articles about the Trump properties and nice pictures of interviews

and that.

HARLOW: But the Trump magazines that were sold have been -- that was discontinued.

SEBASTIAN: That's a business that folded.

HARLOW: So really key here in all of this. It's one thing to talk about water or magazines. When you talk about someone's education. Trump

University is now closed for now. They're going through a lawsuit. And a number of people claim that they were ripped off. That they didn't get the

education they paid for. Last night he down played that, and call it sort of a small lawsuit.

SEBASTIAN: He said he would be able to reopen Trump University once he became president and he is sticking by this. But as you know, there is not

just one lawsuit there is three lawsuits. The two class action lawsuits in California. There's another one in New York that was brought by Eric

Schneiderman. Now, he is not backing claim. He said these claims are extremely serious, Poppy, this is what he told CNN's Chis Cuomo, last week.


ERIC SCHNEIDERMAN, NEW YORK ATTORNEY GENERAL: This is equal of someone of him putting up a sign saying Trump hospital when it's not, and when he

people in it aren't nurses and doctors. That's basically what he did. You can't commit fraud. It is not a light charge. It is a serious charge for

someone who wants the public trust to take a much more important role.


SEBASTIAN: So there you have it, Poppy. The Trump University claims obviously very serious. Pulling all of this together. We have got the

steaks which have folded that business. We've got the magazine business, this is just a free magazine that goes with the hotels. This belongs to

his son. And this is just water bottled by someone else and carrying the Trump brand.

HARLOW: So of those five business, three have folded, those two exist.


HARLOW: OK, Clare, thank you very much. Appreciate that fascinating report and look at that.

HARLOW: This just in to CNN. Volkswagen has announced that its top U.S. executive is stepping down. The company says that Michael Horn will leave

VW to pursue other opportunities effectively. Horn served as president and CEO of Volkswagen America since 2014. This obviously all comes after the

emissions scandal and investigation. We'll have more on that ahead.

The company is Square, and the stock has been pair shaped. Its earnings are just down and show Square's business may finally, finally be

straightening itself out. A live report next.


Hayman's company Square has brought in more money than expected. It reported revenue of $374 million for the fourth quarter of last year.

Those numbers just out. It expects to turn a profit by the end of this year. This is Square's first financial report card since the company went

public in November. A lot of questions about CEO Jack Dorsey, obviously the CEO of Twitter as well. And he must be breathing a big sigh of relief

right now. As I said, he also serves as CEO of Twitter, and some investors have worried, you know, it's hard to run two companies at the same time and

how do you give them both the attention they need. Shares of Twitter and Squares of twitter have had a rough ride thus far in 2016. Both now

bouncing back slowly. Samuel Burke here with us to break down the results. Let's go through the numbers.

SAMUEL BURKE, CNN MONEY, BUSINESS CORRESPONDENT: Well, the basic number that I'm most interested in is transactional revenue. That's actually how

much money is going through from the consumer to Square when you swipe a card in one of their little devices, the little square up there.

[16:45:00] And that was $299 million. People had expectations of about $300 million. So right in line with expectations. That's the most

important number. That's why the stock is up more than three percent after-hours.

HARLOW: But their business model is changing. We are used to the little white square that plug into the phone, taxi drivers here in New York use, a

lot of merchants use. That's actually changing, so people won't have to buy the physical item anymore.

BURKE: Exactly. So people are used to seeing the device that you're seeing right on your screen right now. You swipe your card there. But

actually they are taking advantage of Apple Pay and Android Pay. Those new payment platforms that are built right into phones. So instead of having

to sell those devices, let's I want to start a business tomorrow and charge Poppy Harlow for something. All you have to do is have your credit card go

near my phone and that might be it.

HARLOW: But is there a concern about that does to their business. I mean how much revenue - because it doesn't cost a lot to produce this Square.

BURKE: Yes, a lot of times they were selling it at loss or sometime even just flat. So it's actually very good for their business because anybody

what's to go in and start using Square doesn't even have to buy anything. They can just start using it right away.

HARLOW: And they take a percent of that.

BURKE: Exactly. So analysts are excited about that technological change.

HARLOW: So what about this concerns over Dorsey. Clearly a very accomplished young man. He is still a young man to be CEO of Twitter and

Square. But is the concern justified? That how can you run two companies successfully and really keep your eye enough on both?

BURKE: Well, it has been justified for the past almost year when people were seeing the stocks go down so much for both of these companies. Square

has been hit incredibly hard, twitter even harder. So people have been saying, "Look this just isn't working out." So certainly like you said

people are going to be breathing a sigh of relief not just for Jack Dorsey, but for Twitter. Because it takes the pressure off of Square and it takes

the pressure off of Twitter, which is of course a consumer focused company with a broader base of clients. So really I think, people on both sides of

that street, because they are right by each other, are very happy right now.

HARLOW: Right, but one quarter does not a trend made. Do you feel confident this is a turning of the corner truly?

BURKE: I don't think you can say this for either of the companies yet. Because this is the first earnings report for Square and it's just a little

bit of a relief for Twitter. When you look at that, wow, it makes you -- this is year to date actually. So actually that one over the last couple

of months things have been --

HARLOW: Also kind of in line with what the market has been doing.

BURKE: They've both taken a hit because of what is happening with tech stocks. They've all been hit pretty hard. So they're coming back. I

don't think you can say they have turned the corner yet. At the end of the day we have to talk about Twitter. They have a major problem. User growth

is actually down in the United States at least. Their most important market.

HARLOW: Really.

BURKE: Yes. You know, traditionally with tech companies, it's been, "Well, they can add users, but they don't know how to make money." Twitter

knows how to make money but haven't been adding users right now. So you can't not say they have turned a corner when they're dealing with issues

like that.

HARLOW: Samuel Burke, thank you so much. Appreciate it so much.

Here in the United States looking at the markets. U.S. stocks managed small gains on Wednesday, as oil prices surged. The Dow closed the session

just 36 points higher. Just above that 17,000 point mark, for really, when you look at, sort of the finest of margins. Investors are cautious ahead

of the ECB policies meeting. That of course takes place on Thursday.

And now it is an ancient Chinese game with a seemingly infinite amount of allowable moves, seriously. You're going to see this firsthand. The world

champion has been beaten in a match by a computer program. We'll have that for you in a moment, and a live-display of me attempting to play it. But

first a highlight from "MAKE, CREATE, INNOVATE."


HARLOW: Many in the technology world overjoyed tonight. Not because of a rocket launch or a ground breaking discovery. It is because of a board

game competition. An artificial intelligence program built by Google has defeated the world champion of the ancient Chinese game Go. Lee Sedol,

that is the world champion, lost his first game against Google DeepMind's AlphaGo program in Seoul. The South Korean is scheduled to play four more

matches against the computer in a best of five series.

Tesla founder Elon Musk tweeted this, "Congrats to DeepMind! Many experts this the field thought AI was 10 years away from achieving this." Michael

Chen is with me, he is one of the top Go players here in United States. He won the North American championship when he was just 16 years old. That

was back in 2006. He is with me now. Congratulations. Nice to see you.


HARLOW: Nice to see you. Thank you for coming in. I have no idea what this is. How to play this. What does it take to be good at Go? Because

we have black and we have white.

CHEN: White.

HARLOW: What does it take to be good?

CHEN: So it takes basically a lot of computing power, calculations, which is our brain. And it takes a certain kind of intuition, which is judgment,

whether this is big or small.

HARLOW: Do if you and I were playing and I -- could I start?

CHEN: Yes.

HARLOW: So if I went like that, then what would you do?

CHEN: I would probably try to kill you.

HARLOW: Kill me?

CHEN: So you can kill someone by surrounding it. So for example, if you place some random moves, then I will try this around you.

HARLOW: On all sides.

CHEN: On all sides. On the four adjacent sides. So now, do you want to switch colors?

HARLOW: Sure, I want to be the winning color.

CHEN: Do you know how to --

HARLOW: Like that.

CHEN: Exactly, and that kills my stone.

HARLOW: And then you put it back in there.

CHEN: Right.

HARLOW: Got it.

CHEN: And so this would be your territory.

HARLOW: Why is it so much more difficult than chess? I know when you look at possible board positions, there are more I read than there are atoms in

the university.

CHEN: Yes. That's true. If you look at it it's 19 x 19, 361, multiply that by 360 and so on, you get a very large number very quickly. So the

real challenge to this game is the judgment.

HARLOW: Judgment.

CHEN: Human intuition.

HARLOW: And the human intuition, but a computer won.

CHEN: Exactly. And so that's -- there is two -- basically, there is two fundamental advancements here. One is so the computer has mastered Go.

It's exactly the same as Garry Kasparov getting beaten by Deep Blue, except this time there is no other game left. Go is the most wonderful game

humans have created.

HARLOW: Do you believe -- two things. Do you believe a computer could beat you at this?

CHEN: Yes.

HARLOW: You do?

CHEN: Definitely.

HARLOW: When we look at sort of the bigger picture of artificial intelligence, AI here and advancement made. Again, experts said this

couldn't happen for ten more years and it has happened. Does this tell us more about the ability of the machine to be human or of the way that

machine and human can work together?

CHEN: Yes, that's exactly, I think the most crucial point about this. DeepMind's AlphaGo, he became a world champion level player because in

addition to the computing power of the computer, they've added human touch, the judgment.

HARLOW: Judgment.

CHEN: And that's what makes us the most wonderful event that has happened in the field recently.

HARLOW: The most wonderful event.

CHEN: They've mastered the most complicated game, the most wonderful game, by adding a part of something that makes us all human.

HARLOW: But remember who that computer was built by -- humans.

CHEN: Humans.

HARLOW: Thank you so much. Very nice to meet you. Congratulations on all your success. Thank you so much.

CHEN: Thank you very much.

HARLOW: Well, this week the education gap has been in the spotlight as the world celebrated International Women's Day. Literacy is a crucial element

to economic independence for both men and women. Model Lilly Cole recently addressed the U.K. Parliament about the importance of literacy programs.

And Richard asked her what the major barriers are when it comes to closing that pay gap between men and women.


LILY COLE, MODEL & ACTRESS: I think culture has an enormous part to play in it. I think culture is behind a lot of our problems right now. If you

look at something as fundamental as literacy. Two thirds of the illiterate community around the world, which is 757 million people, are women.

[16:55:00] And literacy -- if women are illiterate that's a barrier then to education, which becomes a barrier to economic independence, which then

becomes a barrier to equality. So I think there's multifaceted problems. I think economics play a huge role I think, education plays a huge role,

and of course underpinning all of that is cultural issues and potentially even the biological implications of carrying children and having children.

RICHARD QUEST, CNN ANCHOR: The issue of literacy in the agenda of the gender debate, you have chosen literacy as being if not the top, at near

the top. Why is that?

COLE: I've been interested in literacy recently because there is data that goes to show that literacy has a huge impact on many, many different social

issues, including women's issues like female genital mutilation and the fact I just mentioned around how many -- how high the proportion is of

female illiteracy is. But then you also see issues like if you increase female literacy by 50 percent, you decrease infant mortality by 30 percent.

So the implications of educating women are very profound. I don't think that's a singular problem that women have, but literacy is I think a key

that we have to unlock many different problems including gender specific ones.

QUEST: And how important do you consider it to be? As somebody who has made their name in the fashion industry and in the modelling industry,

which arguably -- I mean, we can debate the rights and wrongs about -- but arguably is amongst the most ephemeral of industries in materials of the

look rather than the substance. How important is it for you to delve deeper beyond that into these sort of issues?

COLE: Well, I only have ever modelled part-time. I always stayed in school. I went through University. So I've been very privileged in terms

of the education I've had. So, and interestingly fashion is only one of the industries actually biases women, and women or female models anyway,

are often paid more than male models. So I think I probably had an interesting perspective on it. But I don't see that part of my career

really of having any bearing in terms of thinking about these issues. I think I would think about them regardless of having doing done that job or



HARLOW: Fascinating interview. Quick break. We'll be back in a moment.


HARLOW: All right, that's all we have time for this evening on QUEST MEANS BUSINESS. I'm Poppy Harlow. Thank you so much for watching. Stay with us

on CNN.