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Quest Means Business
Hillsborough Verdict In; Tuesday Primaries Previewed; Election and Business; Twitter Earnings Examined; Mitsubishi Admits Decades of False Fuel Numbers; Al Qaeda Affiliate Says It's Behind Bangladesh Killings; First Exit Polls To Be Release in U.S. Primaries; Spain Faces New Elections; Prince Did Not Leave a Will; T-Mobile Adds 2.2 Million Subscribers. Aired 4-5p ET
Aired April 26, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
(BEGIN VIDEO CLIP)
RICHARD QUEST, HOST: (In progress) - to you, as soon as it happens. And 25 years of fiddling the fuel numbers, scandal at Mitsubishi is accelerating.
(END VIDEO CLIP)
QUEST: I'm Richard Quest. We have an hour together. And I mean business.
Good evening. It took more than a quarter of a century but now after disaster that changed the face of modern football around the globe the long
fight for vindication and justice has arrived.
(BEGIN VIDEO CLIP)
QUEST: An inquest into the stadium tragedy found that the 96 Liverpool fans, that were trapped and crushed to death on the infamous day in April
1989 were in the words of the jury unlawfully killed. The jury found in their words gross negligence and police planning errors created a situation
that was rife with danger. And crucially for the family of the victims, fan behavior was said not to have caused or contributing to the tragedy. And
so, concludes the longest jury case in British legal history and criminal charges are now going to be considered by the various prosecutorial
authorities.
(END VIDEO CLIP)
QUEST: CNN's Phil Black is in Liverpool and has sent this dispatch.
(BEGIN VIDEO CLIP)
[singing]
PHIL BLACK, CNN CORRESPONDENT: This was the day that hope finally gave way to justice. The families, friends of the 96 who died plus many, many more,
the result they had fought for, for more than a quarter of a century. Liverpool football fans exonerated, instead an inquest jury finding the
victims unlawfully killed. Brenda, Debbie and Dianne lost their brother Brian.
BRENDA MATTHEWS, LOST BROTHER, BRIAN: I was elated and like a weight lifted off our shoulders after 27 long years of just trying to get justice for our
brother Brian.
DIANNE MATTHEWS, LOST BROTHER BRIAN: Today has been a victory and I think, you know, we can go home and maybe have a good night's sleep after 27
years.
BLACK: Margaret Aspinall lost her 18-year-old son James.
MARGARET ASPINALL, LOST SON JAMES: I don't mind truth and I don't mind justice and I don't mind the wars but give me the truth on my son's death
certificate and people said you've had the truth. A lot of people were saying then you've had the truth. No, we knew we never had the truth and we
proved now I can get my son's death certificate with the right verdict.
BLACK: The man in charge of the policing operation for the match, Chief Superintendent David Duckenfield of South Yorkshire Police was found
responsible for manslaughter by gross negligence. He could now face criminal proceedings. He admitted to the inquest he had lied when he blamed
Liverpool fans for causing the crush. The man in charge of South Yorkshire police today admitted his predecessors got it catastrophically wrong.
DAVID CROMPTON, SOUTH YORKSHIRE POLICE: The force failed the victims and failed their families. Today, as I have said before, I want to apologize
unreservedly to the families and those affected.
BLACK British Prime Minister David Cameron in a tweet called it a landmark day which had brought long overdue justice. England football captain Wayne
Rooney whose hometown is Liverpool tweeted at last justice for the 96 and their families. Well done to all who never gave up.
In Liverpool, itself, a candle for each of the 96 beneath banners bearing their names and then slowly the two words people here had been waiting for.
Truth and justice.
Phil Black, CNN, Liverpool.
(END VIDEO CLIP)
QUEST: Now football, the game itself, had to learn painful lessons from Hillsborough. In 1990, there was an inquiry into the disaster it was called
the Taylor report, done by Lord Justice Taylor, and that recommended stadia be completely overhauled. It said that the standing room terraces should be
replaced with seated areas to prevent overcrowding. All seating areas.
(BEGIN VIDEO CLIP)
[16:05:08]
QUEST: Years later, Top Flight Stadia still had those terraces. I want you to look at these pictures. This was what Chelsea stadium looked like as
late as 1992. And hooliganism - hooliganism was thought to be responsible though wasn't to blame for Hillsborough was still a major problem. This was
the way it looked at Chelsea.
Now, take that same picture and look again at particularly at the ends and you see it's completely all seating. All seated stadiums are now the norm.
There are no terraces where people can stand. There's no room for those sorts of crushes. Safety has been made a priority at the matches. Clubs now
to attract affluent middle class crowds.
CNN's world sport Don Riddell has been exploring Hillsborough's impact on modern football for a new CNN documentary.
DON RIDDELL, CNN WORLD SPORT: The premier league is promoted the best in the world. Every week its games broadcast all over the world taking people
inside England's state of the art all seater stadiums. But 27 years ago it was a very different story. Stadiums were decrepit. Many fans stood. The
scourge of hooligans meant that rival supporters were kept apart by fencing. They were penned in on all sides.
UNIDENTIFIED MALE: The conditions of the stadium, we took them for granted. We would cheer when people were handed down who'd fainted in the cop and
they were handed down to the front and passed over to the ambulance people. We cheered because it was just part of the way it was.
(END VIDEO CLIP)
QUEST: Don Riddell joins me now from the CNN Center. Don, as we look at Hillsborough and you obviously have looked at it extremely closely, we'll
comes to the changes in football in a minute but I just want to dwell on, all these different reports, you've had numerous inquiries. The initial
one, then you had Taylor and you had various earlier coroners' inquiries but none of them came to this conclusion. Was that because people lied or
they just didn't look for the right facts or they ignored what was there?
RIDDELL: Well, Richard, I think it was a little bit of everything. I think now that we have got to the end of this 27 years later, it becomes rather
apparent that the authorities perhaps didn't really want the real story to be told.
(BEGIN VIDEO CLIP)
RIDDELL: And that is certainly how the fans and the families of the victims would present the argument. For example, you take the origin inquest which
ended in 1991 when the 96 verdicts were essentially accidental death. That infuriated the families and one of the reasons the jury got to that
conclusion was that basically the stage was set with that inquest where no evidence was permissible after a 3:15 p.m. cutoff. The decision was taken
before the inquest even began that the injuries sustained by 3:15 were basically irreversible and people -- and/or people had ceased to be by
3:15.
It now transpires that many of those fans were alive long after the 3:15 p.m. cutoff and that is why we now saw so much evidence that hadn't been
heard for the last 27 years, finally presented at this inquest. The families will argue that basically the authorities didn't want them to know
what the real truth was and that's because the authorities were responsible for what happened.
QUEST: Right. And so, in that sense, we can say conspiracy.
(END VIDEO CLIP)
RIDDELL: Well, the families would certainly phrase it that way. They have called this a cover-up of industrial proportions.
(BEGIN VIDEO CLIP)
RIDDELL: That is the narrative that they have believed all along. Now, the police force deny this. But when you begin to look at some of the evidence
and some of the research that has been done, when you look at, for example, the police statements, which were taken in the aftermath of the disaster,
it's been revealed that some of the statements were altered, some of them were basically copied from one pc to another and presented separately but
is basically the same story.
(END VIDEO CLIP)
QUEST: Is there a danger here that Duckenfield, the chief superintendent involved, who admits to lying, who admits to having covered up, who admits
to having put his head in the sand, becomes the scapegoat because it's easy to pin everything on him rather than wider institutional police, ambulance
service and all the other (inaudible) that did condition spire to keep it from the public for so long?
RIDDELL: Well, it's a very simple narrative to blame David Duckenfield and certainly there is no sympathy for that particular individual on
Merseyside.
(BEGIN VIDEO CLIP)
RIDDELL: Not just because of his failings but because of the way the cover- up if you want to call it that manipulated from the very - from the very off.
[16:10:03]
RIDDELL: I think the families want all who were responsible to be held accountable. And so that goes way beyond just David Duckenfield. It's very
important that the jury when they considered these 14 separate questions were also looking at the responsibility of the Sheffield Wednesday who
owned the Hillsborough stadium, of the structural engineers who provided the fixtures and fittings on the terracing which were proved to be woefully
inaccurate.
(END VIDEO CLIP)
RIDDELL: The ambulance service, the city council who provided the safety certificate for the stadium which was ten years out of date. All of these
people have been proven to be responsible. The only group or organization that wasn't responsible were the fans. They were unanimously exonerated for
their part in the disaster and for so long, Richard, that wasn't the case. The original narrative was that the fans caused this by arriving late,
drunk and without tickets. Kicking in the gates, those were the words of David Duckenfield originally and that was proved absolutely today that that
was never the case.
QUEST: Don Riddell who has followed this very closely, Don, thank you very much. Don at the CNN Center and you can see more of Don's extensive
reporting on this tragedy tomorrow night. It's a CNN documentary, "Hillsborough, They'll Never Walk Alone." It's on Wednesday it's at 8:00
o'clock in London time, 9:00 o'clock in Central Europe, and of course, it's on CNN.
(BEGIN VIDEO CLIP)
QUEST: We're expecting to have results from twitter any moment now and we're waiting to see whether the social network users have come to the nest
or flown away because the crucial point where twitter's concerned is how many people are using it and how many have stopped.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
QUEST: Just an hour from now or so and the first exit polls of five states that is voting in the primaries across the American northeast. Donald Trump
is hoping to sweep the board on the Republican side. CNN's chief U.S. correspondent is John King and give us a very good idea of what's at stake.
(BEGIN VIDEO CLIP)
JOHN KING, CNN CHIEF U.S. CORRESPONDENT: Donald Trump is counting on a big Super Tuesday night that moves his cause forward in the quest to get to
1,237. Our CNN delegate count has Mr. Trump just shy of 850. Ted Cruz in a distant second.
Here's what's at stake in the primaries Friday night. Five states in the northeast, the mid-Atlantic region, the so-called excelsior primary, 172
republican delegates at stake critical because Donald Trump is favored to win them all, and if Donald Trump wins them all on Tuesday night and wins
them all with a healthy margin he could add 100, maybe even more, watch that final number, to his delegate count. Get past 950, meaning get past
75% of the way to the finish line; maybe even stretch it out a little bit more if he wins them all big. This is a relatively conservative estimate if
Donald Trump ends Tuesday night like this; does that mean he can in the rest of the contest get to the magic number? Doesn't guarantee it but keeps
him in play to get to 1,237. Which is why Governor Kasich and Senator Cruz had this new alliance. Let's take a look at what we're talking about.
[16:15:03]
KING: Senator Cruz says I'm going to Indiana. Governor Kasich says I won't campaign here anymore senator; you take on Donald Trump in Indiana, May
3rd, 57 delegates. In return, Senator Cruz says I won't campaign in Oregon; I won't campaign in New Mexico, that's later in May. On the final day in
June, add them up, 109 delegates as part of this Cruz/Kasich alliance. Will it work? Well, let's take a look.
If it plays out the way those two Republicans hope it plays out and Cruz wins Indiana, Kasich wins New Mexico, Kasich wins Oregon, look where Trump
is here, the one state to factor in. Even if that plays out the way they want it to, even if Trump wins big, 70% of the delegates in California on
the final day, he would be short of 1,237. He'd be pretty close conceivably but still short. That's what they hope happens.
But what if it doesn't work? Right now the polls show Donald Trump ahead in Indiana. What if he wins there? Donald Trump's mocking this deal. He says
he's going to go to New Mexico and beat Governor Kasich. What if that plays out there and he wins, they split the delegates but Trump wins.
And let's say Trump runs the board. And goes up to Oregon, as well and wins there and Governor Kasich comes in second. If it played out like that, huge
Trump momentum to the end. Under this scenario, he's at 1,236. So if he has a big Tuesday night, he could get a few more. He could conceivably pass
1,237.
Or if he can win Indiana, maybe loses the other two, still be in the 1,215/1,220 range which allows him to negotiate his way to the finish line
between the final primaries and the Cleveland convention.
So if you're going to stop Trump it's critical that you beat him in Indiana and you beat him in some of these states out to the west. So it's a deal
worth trying but Mr. Trump says it desperate. Tuesday night first, then we'll see how that one plays out.
(END VIDEO CLIP)
QUEST: John King with the machinations and the numbers. We're in the C- Suite with Bob Nardeli, the former Chief Executive of Chrysler, and Home Depot. How good to see you, sir.
BOB NARDELI, FORMER CHIEF EXECUTIVE OF CHRYSLER: Good to see you Richard.
QUEST: Good to see you now.
NARDELI: Thank you.
QUEST: We're in the C-Suite and you were telling me the view of the C-Suite at the moment.
NARDELI: Yes. What I said was the level of the uncertainty in the C-Suite has never been as high as it is today. The level of complexity that we have
to deal with, geo political. You look at taxes, you look at when's happening in the M&A market, the administration has shut down $400 billion
of potential deals. Today, corporations must do M&A to get the top line growth. They're getting earnings. They're driving productivity. But to get
growth, they're looking for synergies of productivity, Richard.
QUEST: Except in this election, big business large corporations are the whipping boys of both the right Donald Trump and the left.
NARDELI: Yes.
QUEST: Wall Street is being clobbered on both sides.
NARDELI: They really are. And I think we've seen some articles about that. My good friend, Jim McNerney came out the other day and expressed his point
of view on that exactly. That this thing could become reality. I mean there's so many people talking about it, and putting a spin on it, that it
is creating a lot of uncertainty. I mean if you look at GDP is going to be maybe 11/2 points again this year.
QUEST: But is it damaging or is it just politics? When you get the Bernie Sanders of this world attacking GE, Immelt replies in the newspaper,
Verizon also relies. Do you feel that CEOs are feeling under attack by politicians?
NARDELI: Yes, I think so, Richard. I mean I think Jeff was definitely appropriate in responding to some of the criticism that Bernie came out
with. I mean, you talk about in Vermont, you know, GE's got a great plant up there and they never visited the plant. You know he's made some other
comments about that. I just think there needs to be an outreaching regardless of what, you know, what party takes office. But I think they've
got to be more supportive of business today. It is what creates jobs, it is driving the economy and I think it's an error not to lock arms and be
supportive of our government -- of our businesses.
QUEST: The question of free trade, obviously you're a free trader probably through and through. You've lived your life in that --
NARDELI: I'm a fair trader. I mean, I think there should be more balance of trade. I'm a fair trader.
QUEST: But you wouldn't be in favor of suddenly racking on tariffs to the Chinese or suddenly building walls in Mexico. Or maybe you would!
NARDELI: No, here's what I think. I think you could go you know a road too far and try to block trade. I mean, I grew up in the old days of economics,
you know guns and butter. And kind of a fair trade opportunity. I think we could - we could export more. I think if we had better federal government
taxes on big business, I think if we worked towards a balance of trades is what we really need in this country.
QUEST: I want to touch another area. In just a moment I'm going to be talking about the Mitsubishi.
NARDELI: Yes.
QUEST: And the way they fiddled the fuel emissions and the way they -- not emissions, I beg your pardon, the way the fuel efficiency numbers.
NARDELI: Miles per gallon.
QUEST: Miles per gallon. Thank you -- thank you, sir. Volkswagen did it in a more sophisticated way. It's led me to want to ask you -- when you were
CEO, did you all believe that everybody was up to it in some shape or form?
NARDELI: No.
QUEST: Did you all believe that somewhere you all knew that the numbers by some companies were wrong?
[16:20:10]
NARDELI: No. You know, honestly, I enjoyed my time immensely at Chrysler even though we were going through some real challenging times. But I think,
you know, Mary Barr at GM really raised the bar and rightfully so relative to quality and responsibility. I think what's happened now is that has
cascaded down, whether it's Chrysler's current recall, you know, for 800,000, whether it is the VW thing, which was malicious intent, willful
violation, Mitsubishi, you know, fudging the numbers on miles per gallon, I think that's all coming home roost now.
QUEST: But did you all know about -- did you all suspect at the time that there was something, you know, you were - I guess was there a cavalier
attitude to these issues?
NARDELI: I don't want to say cavalier but, no, I think we trusted one another that they were dealing with integrity and, you know, I just don't
think that was the case at all. I would never want to suggest that. I mean we thought we were all dealing fair, equitably and really with a focus
towards the market and the consumer Richard.
QUEST: Finally, back to the election, have you ever seen an election like this before?
NARDELI: Never, never. In my entire life I've never seen this, I never would have been able to predict this. I think like so many people we
thought there were some distractions going on but as we fast forward, we'll know a lot more by the end of tonight, won't we Richard?
QUEST: We will, sir.
NARDELI: Thank you very much.
QUEST: Thank you, good to see you.
NARDELI: Thank you.
QUEST: Now we were talking about Mitsubishi, it was in 1991, and then it was the Governor of Arkansas, it was Bill Clinton and he was preparing to
run for the senate. And as it turns out, that was then 1991, it was when Mitsubishi was just beginning to fiddle the fuel efficiency tests. The
miles per gallon as my last guest put it so elegantly.
(BEGIN VIDEO CLIP)
QUEST: Now Mitsubishi has admitted tests have been rigged for the last 25 years, extraordinary. The automaker made it appear that vehicles had
traveled further on less fuel. They did it by overinflating the tires. Mitsubishi's stock fell another 10% and the president said he can't even
say how he can keep the company afloat.
TETSURO AIKAWA, PRESIDENT, MITSUBISHI MOTORS CORP. (As translated) Until we get an idea of when this investigation will end, I can't answer your
question. That's how big of a problem I feel this is.
(END VIDEO CLIP)
QUEST: John Davis, the creator and host of "Motor Week," John, John, John, we spoke last time on Volkswagen, now we're speaking on Mitsubishi. Were
you surprised at this first of all that it happened, and secondly, at the scale and range?
JOHN DAVIS, CREATOR, MOTOR WEEK: 25 years, Richard. That means this is endemic with their corporate culture. But I am surprised because this was
different. For the first time we've had one automaker, Nissan, who was selling these very small cars that Mitsubishi made for themselves and
Nissan. Nissan blew the whistle on Mitsubishi. So they blew the whistle on one of their own, that hadn't happened before and I think that's a game
changer going forward that nobody wants to be saddled with these problems, even if they didn't produce them themselves.
(BEGIN VIDEO CLIP)
QUEST: OK. But the fascinating part about this, and I'm going to ask you the same question I just asked Bob Nardeli who I'm sure you remember and
have met many times.
(END VIDEO CLIP)
QUEST: Going back all those years, is this the sort of thing everybody suspected that some companies were up to something that was a little bit
sniffy and smelly?
DAVIS: Well, in this case, the numbers were not jury rigged that much so it might have escaped most people, most other car companies even looking at
it. But in the case say of Volkswagen where you had these diesels getting much better results for fuel economy and emissions than anybody else that
was doing similar work, I find it very difficult to believe that, say, Diamler or BMW, especially their engineers could look at what Volkswagen
doing and say there's got to be something else going on there because we're using the same parts that they are, maybe not the same engines but the same
components, but nobody really wanted to talk about it. So with Nissan actually now saying, pointing the finger at one of its partners, that's
what makes this different and could change the whole dynamics going forward. I don't think it's the end of the story.
QUEST: I mean that - that was my next thing. I mean, is there more smelly fish to be unearthed from under the kitchen cabinet?
DAVIS: Unfortunately, because governments keep ratcheting up fuel economy and gets much, much more stringent in the future, car companies are
basically designing towards meeting these goals and if they miss them by a little bit it cost them billions of dollars. So I'm kind of afraid there
may be a few more skeletons in the closet. I don't mean to say that I think it's going to be huge and widespread. This is two small little vehicle
designs but I think there may be some more coming out.
[16:25:00]
QUEST: John, well hopefully you'll come back and assist us as more (inaudible) behavior is revealed. We'll need you with a firm feather duster
get to the bottom of it. Thank you, sir.
DAVIS: Thank you, Richard.
QUEST: Investors in the U.S. couldn't make up their minds on Tuesday. This is where the DOW ..
(BEGIN VIDEO CLIP)
QUEST: The Fed wrapping up a policy meeting on Wednesday. Nothing expected on that. Look at the market result, up 13 points. But it was a very - it
was a very late eking out of a very small gain having been down for most of the afternoon. A bit of a weird day. Twitter shares are down sharply.
They're off more than 7%, maybe 9%. The company's revenue missed out on its expectations and the company's lowered its guidance for second quarter.
(END VIDEO CLIP)
QUEST: Cristina Alesci is with me. I've got a 15 -- 17-page briefing note.
CRISTINA ALESCI, CNN MONEY CORRESPONDENT: Yes. Exactly.
QUEST: You have read the 17-page briefing note.
ALESCI: Yes, in the last 3 minutes I actually managed. Speed reading is great. So you hit the two major headlines which is why we see the stock
tanking. Now revenue is a problem for the company. Right? Investors want to see revenue growth. Revenue is growing even though it missed expectations.
You are still seeing revenue up. The problem is the street doesn't care about revenue. It wants to see user growth.
QUEST: Right. Because revenues only today's numbers, user growth is revenue for the next quarter and in the future.
ALESCI: That's exactly it. And if you don't have profits what you want to see is growth on the user side. And this is something that Twitter has
struggled with. Don't get me wrong. We saw a 5 million increase in users. Better than the 2 million loss that they had last quarter. But it's still
not going gang busters. And the reason that people care about the number of users on the platform is because advertisers care about the number of users
at the platform. Twitter is competing for ad dollars with Facebook that has 1.6 billion users. Google which has 8 products that has users with more
than a billion products.
So you're talking about, you know, 310 million people on Twitter. The main knock against Twitter is that it's professional audience. It's difficult to
use. I was on the phone with an analyst who was a big fan of Twitter and he said that he just only after five, six years of covering the company
discovered the help function on Twitter. And the only way that you can get to it is by clicking on your picture and scrolling down.
QUEST: I am terrified.
ALESCI: No, you're not.
QUEST: No, I am. When I tweet I am terrified that I do not understand if it's going to go just to you, if it's going to go to you, if it's going to
go to the friends of you and you. And this dreadful thing with the pictures where am I about to send a photograph to somebody that shouldn't receive
that particular photograph?
ALESCI: You are hitting the nail on the head. This is incredible because this is exactly the knock that all of the industry has with twitter.
QUEST: Yes, but I'm 54.
ALESCI: No, but it's not just you. I know you like to think so but you're not special.
QUEST: Get away from that woman.
ALESCI: Lots of other people who are intimidated by the fact they don't know what a direct message is. They don't even know what a hash tag is,
they don't know why they should be using hash tags.
QUEST: And yet, and yet, twitter has become the venue discourse for people to put out statements. Witnessed when Prince dies, everybody puts out a
statement. Look at the Hillsborough inquiry, the first thing the British Prime Minister does is put out a tweet that gives his statement. So it's
got an officialdom about it.
ALESCI: It's not a cache right. But the problem with Twitter if you really look at it, Twitter is a news service, OK. It's where people go for news.
So you should have a pretty direct correlation between the people who are consuming news to the number of users that you have on Twitter and you
don't have that. You just simply don't have it. There's no conversion there.
QUEST: At Cristina --
ALESCI: What are you -- what kind of pictures are you sending me?
QUEST: There's the bell, thank you. Good to see you.
ALESCI: Good to see you, too.
QUEST: Later in the program you're going to hear from Jean Legere of T- Mobile USA. Now, Jean Legere is one of the most prolific Twitter user, certainly as a CEO. He's going to explain to us why he uses Twitter so
much. We've got more earnings out in a moment; investors are waiting to see whether the shine has come off Apple. Is it going to be the Apple miss? And
the world's biggest company's expected to post the worst result in some 13 years. We'll have that story for you.
It's "Quest Means Business," it's a Tuesday and we're very glad that you're on board.
(COMMERCIAL BREAK)
[16:30:00]
RICHARD QUEST, CNN ANCHOR: Hello. I'm Richard Quest. Of course there's more QUEST MEANS BUSINESS in just a moment. When iPhone sales could be
declining for the first time and Apple results are due out any moment now. They could be as we're speaking. A number of chief executives have their
own earning drinking game We're going to ask T-Mobile's John Legere, why he insists on such vulgarity. Before that, this is CNN. And on this network,
the news always comes first.
Families of the Hillsborough victims say justice has been served after a jury ruled 96 Liverpool fans were unlawfully killed in a crush in 1989.
The jury found the fans themselves were not at fault. The police error was a factor in their deaths. Margaret Aspinall, whose 18-year-old son was
killed that day says she hopes criminal prosecutions will follow.
(BEGIN VIDEO CLIP)
MARGARET ASPINALL, MOTHER OF HILLSBOROUGH VICTIM: What we have gone through, somebody's got to be held accountable. If I say prosecution, yes,
I think they do need to be prosecuted. For what they put us through, the truth was there for 27 years. We never got that truth. A lot of that's
come out in the court over the past two years. It's things that we have never seen. We haven't seen before. And that's what shocked me. And I
thought that is been there. Why wasn't that handed over?
(END VIDEO CLIP)
QUEST: An Al Qaeda affiliate has claimed responsibility for the brutal killing of two men in Bangladesh. They were hacked to death in an
apartment in the capital of Dakar. One of the victims was the editor of the country's first LGBT magazine and also worked for a U.S. government
agency.
Half an hour from now, the first exit polls from the latest rounds of primaries in the United States. Five Northeastern states voting this
Tuesday. Big wins for Donald Trump and Hillary Clinton would tighten their grip on their respective party nominations.
Spain is to head for new elections. According to the head of the country's Socialist Party. It's been four months since the Spanish originally went
to the polls, but they gave no party a majority. Now, King Felipe has met with the political leaders to see if a coalition can be formed after
Sanchez says he doesn't have enough support and therefore elections are inevitable.
(BEGIN VIDEO CLIP)
PEDRO SANCHEZ, LEADER, SPANISH SOCIALIST PARTY (via translator): it's not been possible and, therefore, we'll face a repetition of the vote. And I
am saying a repetition of the vote and not a second round as some people want to call it. It will be a repetition of the vote as consequence of the
in ability and unwillingness of Mr. Iglesias to lead the change with me and Ciudadanos, and in that way to put an end to Mariano Rajoy's government.
(END VIDEO CLIP)
[16:35:00] QUEST: The sister of the music legend Prince says that the late singer did not leave a will. Tyka Nelson is Prince's only full sibling,
and she's asking for a special administrator to deal with his assets. Prince, who was not married and had no living children is believed to be
worth $300 million.
T-Mobile strategy has paid off in a big way with more than 2 million customers joining the network in the first three months of the year. The
chief executive took to twitter to gloat. "AT&T and Verizon trying to buy out T-Mobile customers, but we still took their customers and kept ours,"
he said. John Legere has been aggressive in going after his rivals. And his company's been aggressive in courting customers with expanded network
and perks like unlimited video streaming. It seems as though T-Mobile lags behind the leaders. Speaking to me earlier, John Legere said the trend is
in his favor.
(BEGIN VIDEOTAPE)
JOHN LEGERE, CEO, T-MOBILE USA: We added 2.2 million customers this quarter. That's the 12th quarter in a row over a million, so it's not a
fluke. Six of the last seven quarters we have added 2 million. And then when you go down, you know, we had a million postpaid subscribers, which
is, you know, seven in a row. And then 877,000 post-paid phones and interesting this quarter, 807,000 prepaid nets. Another trend coming is
churn is low. So not only customers coming, they're staying. And the biggest news of our earnings today was service revenue up 13.6 percent and
EBITDA up 98 percent. So we're cleaning their clocks is what it means.
QUEST: Do you think you have, if you like, not you personally, but a reputational issue that people don't believe --
LEGERE: Absolutely.
QUEST: -- that your coverage is as good?
LEGERE: Yes, and it's not like a reputation. It's a reality that our network investment in our coverage has changed so much that the issue that
I spend every day doing is saying, who do you use? What is your opinion of T-Mobile? How old is it? Is it third hand or firsthand? And if it's more
than a month old, it's old. So just try it.
QUEST: Bingeing and streaming. We were talking about it yesterday -- and Spotify, and the things -- they offer you great opportunities, but require
huge amounts of bandwidth. And they require you to invest vast sums, don't they?
LEGERE: You have to invest vast sums to have a scale of network anyway. Doing things for consumers that solve pain points is fundamental principle
of who we are. Music streaming, it's small amounts of data. It's very easy to stream music free. And what we did with BingeOn was fascinating.
Understanding of the fact that a mobile device does not require 1080p and with a deal with a customer, if you agree to stream it at 480p we'll zero
rate to video streaming. It actually lowered the utilization of the network on the day we turned it on by 12 percent.
QUEST: Why do you feel the need sometimes to be so personal?
LEGERE: You have such a great way of saying --
QUEST: In your -- some might say vulgar.
LEGERE: Vulgar definitely. Come on.
QUEST: You revel in it.
LEGERE: You know, I have said many times, I am my customers. I talk, I act, I say the things that you're all thinking about. You're afraid to
say. And, and I am who I am. This is a consumer business for the most part and I relate to my customers. I relate to my people. And that's who
I am. I don't take myself too seriously.
QUEST: Twitter.
LEGERE: Yes.
QUEST: You have 2.4 million followers.
LEGERE: So far, yes. It's a long day.
QUEST: You tweet constantly.
LEGERE: Yes.
QUEST: You tweet incessantly.
LEGERE: Yeah.
QUEST: You tweet almost to a Trump-esque.
LEGERE: Ah.
QUEST: Why? What for you is --
LEGERE: See, twitter and social in general, it's not a game. This is a major tool I use to run my business. I'm constantly in touch at a moment's
notice with my customers. Everybody else's customers. I can learn exactly what's going on. I get great feedback.
QUEST: Double-edged sword though. If somebody tweets and you don't rely. They have a problem.
LEGERE: No, I always reply. I reply. See, what I do, I've got large customer service teams. All I need to do is see it. I need to see that
message and by the way, when I do and I reply, the big benefit is who's watching. 100,000 people that see, holy crap, that person just wrote to
that guy about service in their home and he wrote back and they're taking care of him. I'm going over there.
(END VIDEOTAPE)
QUEST: John Legere talking to me earlier.
Now Apple results are outand iPhone sales are topped estimates. But these were estimates that were very sharply revised down overall.
[16:40:00] So you've got iPhone sales that are -- which account for two thirds of the revenue. And they fell quite sharply. We'll give you the
numbers in just seconds. It's something like 16 percent year-on-year on the quarter. And other things also missed, other product sales were down
quite sharply. That includes the watch and along with some of the services. And revenues overall, it missed the revenue estimates. Pete
Pachal is with me from "Mashable's" Technology Editor. Good to see you, sir.
PETE PACHAL, TECHNOLOGY EDITOR, MASHABLE: How are you doing, Richard? Good to see you.
QUEST: So let's go through this collection.
PACHAL: Let's do it.
QUEST: I have the results here. The headline numbers, I mean, the headline numbers show revenue quarter versus quarter down from 58 to 50
billion. Revenue is sharply lower.
PACHAL: Revenue is down and it just shows Apple is iPhone company. The bare existence, their profits, their revenues are tied almost completely to
the iPhone. It makes up roughly two thirds of their revenue, this one product. So if iPhone sales decline as they did in this quarter, 16
percent, you know, the company follows.
QUEST: This one. Let's start with this one. There we to. The iPhone's down 16 percent, 51.2. How serious is that for them?
PACHAL: It's fairly serious. Remember this is the quarter before the iPhone SE. So they had just announced the iPhone SE, the small screen
iPhone, which is a significant market for them. One, because people, a lot of people prefer the smaller phone and also it's a cheaper phone. So it
should do logically do better in those growth markets of China and India. So next quarter if we still see some serious drop-off, that would be a huge
reason for alarm and this time expected. It is not good -- for long term not good.
QUEST: Of course it's not good. This, I mean, now they brought out the larger iPad.
PACHAL: Yes, the Pro.
QUEST: The Pro. But the numbers down 10.2 million iPads sold in a quarter, down 19 percent. I mean, I'm not suggesting the day of the tablet
is over and suggesting don't take two and call the doctor in the morning.
PACHAL: Yes, absolutely. Tablets are definitely on the slide. They've been on the slide for a while. I think they peaked for Apple like around
Christmas 2013 and then we started moving on to wearables and other gadgets and whatnot. So with the iPad it's never going to be that thing the iPhone
was. Credit to Apple, they single handedly created the tablet market and it will always there. It's just never going to be that bell weather that
iPhone is. Oh, the watch. I see what you have there.
QUEST: The watch.
PACHAL: Yes.
QUEST: What's happening with the watch?
PACHAL: You know --
QUEST: They don't break out the numbers. They only break it out as revenue and the revenue, if you go is basically down sharply q-on-q but not
year-on-year.
PACHAL: Yes, it's a bit of a mystery how well it's going. You can do reverse engineering math, but because the price of the watch varies so
wildly, it's really hard to get a beat on exactly how many of these things they have sold. But we do know it's the most successful wearable ever, but
it also shows that's not saying much. Wearables and the Apple watch had not going to be -- I think pretty much clear, they're not the must have
device that a smartphone is.
QUEST: Right. So we have --
PACHAL: There we go.
QUEST: We have the Mac. We have the phone. We have the iPad. We have the wearables. Put it all together with this set of results. Is apple in
trouble?
PACHAL: Apple in the long term is in trouble. Because these -- all these products in one way or another, except for maybe the watch, were kind of
transcendental. They really either created a product category or revolutionized it. Right now, as far as we can tell, they don't have
something that is, you know, imminent that's going to change things. There's been talk about a car. That's probably years out if it's ever
going to happen. We heard about the Apple TV service, another rumor. That's probably a little more short term. That could change the game for
them. That probably is the best shot. But it's really an open question whether Apple makes the deals to get, like, a Sling type TV service best in
class. Where you can get over the top, you can get all the TV via the internet. I don't know if they can do it.
QUEST: We're very grateful sir that you come in and help us understand the machinations of this.
PACHAL: My pleasure.
Thank you very much indeed.
PACHAL: Cheers.
QUEST: Thank you. We'll continue QUEST MEANS BUSINESS tonight. Three decades on and the disaster at Chernobyl looms large in the global
consciousness. I'm going to take you inside the fallout shelter. You'll see what it was like in the fallout zone when I visited Chernobyl.
[16:45:00] (COMMERCIAL BREAK)
QUEST: It is a serious lesson all of mankind. The words of Russian President Vladimir Putin when he's talking about the Chernobyl disaster in
the Ukraine. On this day in 1986, clouds of highly radioactive particles were released into the air after an explosion that tore through the power
plant, the nuclear power plant. These are some of the pictures, that actually I took, on a recent visit last year or so when I visiting
Chernobyl and saw it from -- that's the control room where actually the explosion or at least it was being controlled from. And next door to it is
the local town, Pripyat, where of course, you can still see the disused, abandoned buildings. Thirty people were killed. Countless others since
died from radiation. Times moved on. And Chernobyl has become a tourist attraction. With visitors fascinated by post-apocalyptic allure at the 30-
kilometer fall-out zone. I visited the blast site an I found, as you can see from these pictures, a city eerily frozen in time.
(BEGIN VIDEO CLIP)
QUEST: This is a place that needs no introduction. The site of the world's worst nuclear disaster. And inside the 30-kilometer exclusion zone
lies the town, Pripyat. This former Soviet show town was once home to 50,000 people. Its population now -- zero. And 28 years on, it's still
not safe to be here for very long. A normal level of radiation reads .3. This is 12.3. A fitting reminder to practice safety hare at the abandon
and decommissioned control rooms at the Chernobyl nuclear power station.
(END VIDEO CLIP)
QUEST: Fascinating to see it. A part of history. And tonight two stories of history, of course, one of Chernobyl and the other of the Hillsborough.
Some markets in Europe finished mostly lower. Markets in London were the best performers in Europe on Tuesday. BP profits slumped 80 percent, but
the numbers better than investors have expected and the BP shares rose on the news. Three down, one was up. London was the one that was shining
about.
In the last few years, the Washington Monument, the Taj Mahal, have all needed a bit of repair, renovation, a little nip and tuck. Now, bing bong
bing bong. It's Big Ben's turn. CNN's Nic Robertson is in London.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN, INTERNATIONAL DIPLOMATIC EDITOR (voice-over): For more than 150 years, almost uninterrupted, Big Ben's iconic big bongs, the
hourly chimes have rung out across London. But now, the famous clock bell, from where Big Ben gets its name, will fall quiet for urgent refurbishment
work starting next year.
[16:50:00] The British parliament has announced the Elizabeth Tower, which houses the clock, will undergo three years of repairs.
PAUL ROBERSON, CLOCK MAKER AT THE PALACE OF WESTMINSTER: There are a couple of areas that we do desperately want to look at. The suspension
spring, the pendulum, we hope we can set the hands of the clock.
ROBERTSON (voice-over): Decades of weather and water damage have caused parts of the metal and stonework in the tower to crumble. There has been
no major repair work since the 1980s. Even the bells themselves are rusting. The iron roof will be removed completely during the works.
Meaning, there will be several months of silence when the bells won't chime.
ADAM WATROBSKI, PRINCIPAL ARCHITECT AT THE PALACE OF WESTMINSTER: On my left here is the south facing clock face.
ROBERTSON (voice-over): Even the clock face is being eroded.
WATROBSKI: You can see there's considerable problem with water ingress here. There's rust in the frames. The mastic is coming away here. The
water comes down the glass and gets behind that and causes this to rust.
ROBERTSON (voice-over): The team is examining whether to return the clock face to its original Victorian colors of green and gold. But they promise
at least one of the four faces will always be kept visible and on time. And that the bells will be rung as usual on major dates such as New Year's
Eve. Nic Robertson, CNN, London.
QUEST: Bong. "MAKE, CREATE, INNOVATE," next.
(COMMERCIAL BREAK)
QUEST: Moldova has reportedly been offered Romania a lifeline to this year's Eurovision Song Contest to avoid a Roexit. Romania's been expelled
from this year's competition after the countries national broadcaster failed to pay $16 million in debts. CNN's Paula Newton asked the EBU why
Romania had been kicked out.
(BEGIN VIDEOTAPE)
JEAN PHILIP DE TENDER, MEDIA DIRECTOR, EUROPEAN BROADCASTING UNION: Well, last week, the executive board who is represented by the members, have
spoken their concern about this CHF 16 million debt. And the fact that these uncertainty proceedings are pending. So they decided that they would
cut off DDR from all services. Which are the newest exchange, the sports exchange, having access to advise and technology and innovation and
advocacy. This is an entire measure that has been taken. And the ESC original song contest is part of this. For sure, we regret that Romanian
artists can't participate in the Eurovision Song Contest, but because this is part of the measures, this is what follows. But we know that a lot of
Romanian fans will be traveling to Stockholm to come to the Eurovision Song Contest.
[16:55:00] That tickets assured also, the delegation that come and have an accreditation will keep their accreditation, but they will move to the
international part of the event.
PAULA NEWTON, CNN, INTERNATIONAL CORRESPONDENT: OK, understood. Now, with you, Antoine, was the artist. He was going to perform "A Moment of
Silence." I mean, this is on your CD for Eurovision. Why kick them out? As I said, it's not going to bring in any extra dollars. And, you know,
there's probably a lot of bad will now that will happen in Romania towards this contest.
DE TENDER: Well, Eurovision Song Contest is a big production and a high production value. It has a reach of more than 200 million people. So it's
a complex production and SVT, the Swedish broadcaster who is hosting this year's edition had to have a decision to lock down the show. So anything
that happens after today cannot be changed. So we had to be reassured that the running order and the voting system would work. And again,
unfortunately, because of these pending measures of the insolvency, we had to take a stricter measures to DDR.
(END VIDEOTAPE)
QUEST: We're going to have a Profitable Moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. Two stories came together in tonight's program. First, which is results, which were not spectacular by
any means and show worries for the future. And secondly, T-Mobile's results with John Legere, who is the CEO, who uses Twitter enormously to
communicate with his customers. Now Legere and the way he uses it is really quite extraordinary. It's perhaps the CEO of the future.
Communicating directly with customers when they want to connect with you. Which perhaps, might be one of the only reasons people use Twitter in the
first place, which is a very good for the company involved. Think about it. Now that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New
York. Whatever you're up to in the hours I had I hope it's profitable. We'll do it again tomorrow.
END
