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Quest Means Business
Theresa May To Be Next British Prime Minister; May Expected to Follow Through on Brexit; Osborne Meets with Wall Street Investors; U.K.'s Boeing Deal Will Create 2,000 Jobs; Virgin Atlantic Unveils Airbus Order; Officer Shot at County Courthouse in Michigan; Venezuelans Go to Colombia For Food, Supplies; UFC Franchise Sells for $4 Billion
Aired July 11, 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] RICHARD QUEST, CNN ANCHOR: There's the bell ringing on Wall Street. Dow jones industrials having a very strong session, up the best
part of 85 points. I've got a good feeling about today's gavel. Yes, look at that. A robust gavel on Monday, it's July the 11th. The U.K.'s next
prime minister pledges to crack down on corporate excess as the chancellor of the exchequer is busy wooing Wall Street.
Thousands of Venezuelans are crossing the border. It's a desperate attempt to search for food. We're live in Caracas.
And fictional characters give Nintendo shares a real boost. Pokemon Go is taking the gaming world by storm. We start a new week together. I'm
Richard Quest in New York, and of course I mean business.
We'll have our business news agenda in just a moment. But there is some breaking news to bring to your attention. We are following the breaking
news from the state of Michigan, where shots were fired at the Berrien County courthouse. It's in St. Joseph in Michigan, you can see it there
by the lake. We know that a police officer has been shot. The governor of Michigan has tweeted about the situation, saying Michigan State Police have
secured the scene at Berrien County courthouse and started its investigation into the shooting that occurred this afternoon. That's a
tweet from Michigan Governor Rick Snyder, confirming the police have the situation under control. They've started to look into exactly what
happened. Those are, frankly, all the details we have at the moment. When we do have more to bring you, including of course the condition of the
police officer, then I'll bring it immediately to your attention. Of course it has to be seen in the events the shooting of recent days, with
the murders of five Dallas police officers.
While we wait for more details, allow me to most of on to our nightly agenda on business and economics. Britain will have a new prime minister
in just two days. The current incumbent, David Cameron, says he will resign on Wednesday after the race to succeed him came to an anticlimactic
end. Theresa May has been named the leader of the Conservative Party after her final opponent, Andrea Leadsome, stepped aside. Despite being a remain
supporter, Mrs. May said she will indeed, lead the United Kingdom out of the European Union. And she said from that a new Britain will emerge.
(BEGIN VIDEO CLIP)
THERESA MAY, UK CONSERVATIVE PARTY LEADER: We need a strong, new, positive vision for the future of our country, a vision of a country that works not
for the privileged few, but that works for every one of us. Because we're going to give people more control over their lives. And that's how
together we will build a better Britain.
(END VIDEO CLIP)
QUEST: Theresa May. Joining me now from London is CNN political contributor Robin Oakley. I listened to Andrea Leadsome, what she said.
Basically she realized she didn't have much of a hope of getting -- she was never going to win. And so rather than put the Tory Party through this,
she decided it was best to just basically let Mrs. May have it. That's probably wise from the Tory Party's point of view, isn't it?
ROBIN OAKLEY, CNN POLITICAL CONTRIBUTOR: It's a great advantage from many people's point of view, Richard. Everybody have been saying why do we have
to have this contest within a party, the party activists, dragging on for nine weeks through to September the 9th, when the whole country was
desperate to have a clear leader of the Conservative Party, who was also prime minister, Richard.
QUEST: But the thing that struck me about it, we'll talk about Theresa May's views on business in just a moment, the thing that struck me, Robin,
was every opportunity, she says Brexit means Brexit. No EU by the backdoor, no way of willying our way to stay in, and no second referendum.
Does she mean it?
OAKLEY: Yes. I think she does mean it. And of course it suited her political campaign initially, because she had been a remainer, though a
very quiet one in the campaign. She needed to convince all those Tory activists who tend to split about 60/40 as leavers rather than remainers,
she needed to convince them she really was going to deliver the Brexit that the country had voted for. We'll see that probably reflected to a degree
in the cabinet positions that she names after Wednesday evening.
QUEST: She says she's going to announce a Brexit unit, which will be led by a leading Brexiteer. Any idea who that might be?
[16:05:00] OAKLEY: No, not as yet. It would probably be one of those who had played a prominent part in the campaign. It could even be Andrea
Leadsome after this. She paid tribute to her -- Theresa May paid tribute to her dignity in making the announcement today. Although of course
there's not perfect blood between the two of them, Richard.
QUEST: And as for David Cameron, last week or two weeks ago when he rounded on Jeremy Corbyn, he said, I've got two months left in this job,
basically. He hasn't got two months. He's got two days. How do you think, from what you're hearing at Westminster, he is feeling about it
tonight?
OAKLEY: He almost rushed out into Downing Street to announce these arrangements, far quicker than we expected him to do. Normally these
things are done with a bit of style and substance. He just sort of shot out of the door at number 10, there were just a small group of us
journalists there waiting, to announce the timetable for getting out. Obviously, he had done that in some consultation with Theresa May and it
couldn't go on for too long, but you got the impression, really, that he couldn't wait to get rid of the place. Of course he announced some time
ago, when he announced his impending resignation, that he wasn't going to take any more of the big decisions, that those would all be for his
successor, so there wasn't any point in him hanging around, Richard.
QUEST: Robin Oakley, in London and in the days and weeks ahead, Robin, we'll, obviously, be looking at the question of what this all means for the
other European countries. How they're likely to react to the new British prime minister. Thank you, Robin, nice to have you.
And the newsletter tonight, the "QUEST MEANS BUSINESS" newsletter, which arrives in your e-mail in-box any time around right now. You can subscribe
to it the QUEST MEANS BUSINESS newsletter and it's CNNmoney.com/quest. Today I'm writing about Theresa May's views on capitalism, because she said
in a speech earlier in the day that -- Theresa May said in a speech that she wants to put the Conservative Party at the service of working people.
One way she hopes to do that is to curb corporate excess. Among her proposals, Mrs. May wants consumers and employees to sit on corporate
boards.
She wants more transparency such as publicizing the ratio between the chief executive's pay and the average company employee. And she wants to make
shareholder votes on corporate pay binding, not just advisory. So all this from a Tory. Sounding remarkably socialist or social Democratic in terms
of policies. Switzerland, the Netherlands, Australia, Belgium, and France all have some sort of binding say-on-pay for shareholders' votes. The 2015
study found little change in corporate compensation in Switzerland despite the law. I spoke to the conservative MP Nigel Evans, who supports Mrs.
May's proposals. He was in the leave camp. He says he's confident that she will now follow the will of the Brexiteers.
(BEGIN VIDEOTAPE)
NIGEL EVANS, CONSERVATIVE MEMBER, U.K. PARLIAMENT: One of the reasons why I fought the leave campaign was I wanted to see the United Kingdom leave
the European Union in its entirety. I don't think Theresa May could be any clearer than the way she has said that Brexit means Brexit and we're going
to make a success of it. And that's what she wants to do.
QUEST: She's raised some very interesting questions about corporate governance, corporate pay, shareholder involvement in the setting up of it.
Let me go through some of them. If -- we're going to have not just consumers represented on company boards but employees as well. Shareholder
votes on corporate pay must not just be advisory but binding. Bosses' incentives must be better aligned. This is going against the core,
traditional conservative voters, and big business. Does she have your support in this?
EVANS: Absolutely. What Theresa gets is the fact that there are a lot of families out there, working families, they get up early in the morning,
they work five, six, maybe even seven days a week, particularly the self- employed. And they're hurting. The wealth that has been created, which is certainly being enjoyed by a small minority of people, isn't being spread
out throughout the whole country.
[16:10:00] That's one of the reasons, Richard, why the northwest and the northeast of England voted in large numbers to leave the European Union.
They were crying out. It was a message that I believe was lost on the government.
QUEST: Then there's going to have to be wholesale changes in economic policy to reflect that, which perhaps arguably the Cameron/Osborne
government did not do. Because what she is espousing is what we might call a one nation Toryism, but she's saying the inequality is rife.
EVANS: Yes, and she's absolutely right. We have to give credit to David Cameron and George Osborne, the chancellor, for introducing the national
living wage, which meant that clearly more people were earning more money guaranteed in their pockets. And indeed, that the rates of taxation were
going down, so they were able to keep more of that money. But at the same time, there's recognition by Theresa that still there are too many people
being left behind, and you're quite right, there's going to have to be a fundamental change.
QUEST: Do you have a wry smile at the irony that some of the policies that she's talking about, employee involvement on corporate boards, binding
votes on executive pay, and CEO pay, this is all, Mr. Evans, dare I use the phrase, very European.
EVANS: Well, you know, sometimes when Europe does things right, you should adopt those practices. But when they do things wrong, you should ignore
them. The problem with being in the European Union, of course, is that in many cases we just had to sign up with whatever was going on.
(END VIDEOTAPE)
QUEST: That is Nigel Evans. Now the crackdown on executive pay comes as the chancellor of the exchequer, the finance minister, is wooing Wall
Street. George Osborne visited New York on Monday. He met Wall Street investors. The first of a series of trade missions to key finance and
political centers. The other destinations where he's going are Singapore and China later this month. Those are crucial ones, because they are new
markets where of course they are hoping to take up the slack from business from the European Union.
Brussels, he'll be going to talk with EU finance ministers. And lastly the British Secretary, Sajid Javid began talks have begun with India. All
about trying to prove that Britain can create new trade relations with the fastest growing economies of the world. Mr. Osborne told Fareed Zakaria,
that the country must build its economic ties with the world as it prepares to leave the European Union.
(BEGIN VIDEO CLIP)
GEORGE OSBOURNE, BRITISH FINANCE MINISTER: We've now got to make that work for Britain. And I think the best way to do that is to make it clear that
the result is not the result of a country that wants to turn in on itself or become less tolerant or not face out to the world. Rather, this is a
Britain that wants to be a global player. That wants to make sure our economic fruits are shared more widely across our nation. That wants to
shoulder its responsibilities beyond our own continent. We are, yes, leaving the EU. We are not quitting the world.
(END VIDEO CLIP)
QUEST: Now, the chancellor says it's entirely Theresa May's decision whether he remains on as finance minister. You can see his full interview
this coming Sunday at 2:00 a.m. and 12:00 p.m. in London "FAREED ZAKARIA GPS."
The aviation industry has gathered in Farnborough, England for one of the world's premier air shows. The outgoing Prime Minister, Mr. David Cameron
was there. He was aiming to sell a bid to the message that Britain is open for business. That includes a big deal with U.S. aircraft maker Boeing,
which will bring 2,000 new jobs to the U.K. speaking at the air show before announcing he was stepping down on Wednesday. Mr. Cameron said it was in
Britain's fundamental interest to remain close to the EU.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: As for our European relationship, there is a huge amount of work to be done. Complex issues to understand
and crack, and a negotiating mandate to draw up. The big strategic decisions are for the next prime minister. But the groundwork is under
way. And all I would say about the outcome is this. I believe it's in our fundamental, national, and economic interests to remain very close to the
European Union. For trade, for business, for security, for cooperation. So let that be our goal. So the right relationship with Europe, higher
productivity, more exports and inward investment, these are the things we have to get right. And they will require a massive national effort.
(END VIDEO CLIP)
QUEST: Prime minister, Brexit or no Brexit, Virgin Atlantic, the airline that's 49 percent owned by Delta, says it will maintain a strong presence
in the U.K., not surprising since it's based there. It comes as Virgin announced plans to buy 12 A350 planes at a deal with a price tag of $4
billion. CNN's Hannibal Jones spoke to the company's chief executive, who was from Farnborough, and asked him what else is on the shopping list.
(BEGIN VIDEOTAPE)
[16:15:00] CRAIG KREEGER, CEO, VIRGIN ATLANTIC: It's a very exciting day for Virgin Atlantic today, Hannah. We're really happy to be out of the air
show to be able to celebrate our order of 12 A350-1000 aircraft. It all is about the future. We have incredible confidence in the future for Virgin
Atlantic and the opportunity to take a new airplane that will be great for customers and is so much better for the environment, both from a noise and
emissions standpoint, and a fuel efficiency standpoint. It really is an exciting day for us.
HANNAH VAUGHAN JONES, CNN ANCHOR: You said before that greener, cleaner, and quieter is the priority. Why is the environmental impact of so much
importance to you?
KREEGER: Well, virgin, as a company, Virgin Group and Virgin Atlantic have always stood for being part of the communities that we are investing in.
And being able to lower our carbon emissions, while flying customers to wherever they need to go is a big part of what we think our responsibility
is. This airplane, like I said, is a big part of our future in that regard. It saves about 50 percent of noise from the aircraft it's
replacing and 30 percent of fuel. Between both of those things we think we can make the world a better place.
JONES: Just in the last half hour or so we've been hearing from David Cameron, the British Prime Minister, he's there at the same air show as
you. He's been saying the new reality now is Brexit and we have to make it work. Do you think it can work for the aviation industry?
KREEGER: Look, it doesn't matter what I think about Brexit. My job to do and our team's job to do is to find opportunities when things change. And
the world, while it may change the way in which we interact with other parts of the world, there isn't any question that continuing to carry goods
and services to and from the U.K. will be part of what Virgin Atlantic is doing under any scenario. We're all about moving forward and moving
forward positively.
JONES: The order backlog for a lot of these new aircraft is actually enormous. Are you concerned that some of these deals, including the deal
you've struck with Airbus itself, might be put on the back burner at all, or that it might not actually follow through?
KREEGER: No, we're very confident, and we've worked with Airbus many times before, but we're really confident. This airplane begins coming into
service for us about 2 1/2 years from now, in early 2019. And will come through, the 12 airplanes come from 2019 to 2021, and they fit exactly when
we need them to replace some of our older aircraft. We're absolutely thrilled with it and very confident in its delivery.
(END VIDEOTAPE)
QUEST: Craig Kreeger on Virgin Atlantic. On the markets, an historic high for the S&P 500. All the signs of investor uncertainty are remaining.
We'll discuss the big signals on Wall Street in a moment.
(COMMERCIAL BREAK)
QUEST: Welcome back. The markets had a strong day, the Dow was up very sharply amid the uncertainty on Wall Street. The S&P 500 hit an all-time
high on Monday. A record intraday of 2140. Previously it was 6 points underneath that. Today it finished at 2137, so were talking about the
intra- and an all-time close.
[16:20:00] Paul La Monica is at the New York stock exchange. What is driving markets to reach these sort of levels at the moment? This is what
everybody is really not perplexed about, because we know there's been cheap money, but this continual push forward in the absence of certainty.
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: It is amazing, Richard. I think that the expectation is that cheap money will continue in light of
that jobs report on Friday. It was good but not so strong, there were some caveats. People feel that the Fed will be on hold a little while longer.
Brexit fears, amazingly, are starting to fade even with the news today of Theresa May who will be taking over from David Cameron, not a surprise,
obviously, since Boris Johnson took himself out of contention. So I think right now you have this perfect market environment where they're not really
being surprised by anything in a negative way. Any surprises you get, like a jobs report, is a positive one.
QUEST: We're about to enter an earnings season, aren't we, just getting under way. Alcoa has reported earnings, and I see the stock is up after
hours. What are we expecting for this earnings season?
LA MONICA: It's not going to be a great one, Richard. We're expecting another year over year decline for quarterly profits. I think the best
that investors are hoping for, and this might be good enough, strangely, to drive stocks further higher, is that longs big companies don't warn that
the rest of the year, 2017, are going to be dismal, that could be good enough. There's expectation that the third and fourth quarter, we might
finally see a return to growth. We only have a small sample size so far. Pepsi last week, for example, big in the U.K., also Walgreen's, neither of
them warmed because of the problems in Britain.
QUEST: Right, but when we're talking about this earnings season, obviously it's the second quarter, are we talking about the scenario where the market
is expecting bad news, so if it's merely poor, you get a pass, if it's not really bad. Expectations are so low that if you do merely do OK, you will
be considered to have won the game.
LA MONICA: I think that is a great point. No one is expecting profits to grow for the entire S&P 500. So your kind of throwing away these second
quarter results. But if people warn that the third quarter is also going to show earnings falling, that would be very bad news. We need to see
growth again.
QUEST: Right, but thank you Paul, but to put it, Alcoa says it's earned $135 million or 9 cents a share in Q2 compared with $140 million or 10
cents a share a year ago. The numbers are down, but the trend of course is not as bad as it could have been, I guess is what you're saying.
LA MONICA: Yes, the profits did top forecasts. They are obviously a commodity-centric company so no one expected them to report an earnings
increase. They weren't as bad as expected.
QUEST: Paul, nice to see you at the exchange, looking good there, thank you, sir.
Across Europe markets also closed in the green. The FTSE continued the recent rally and boosted by the weak pound. This time it was the DAX that
put on the most weight, up 2 percent. Investors reacted to the news that the uncertainty over who was the next PM was over. Japan's Prime Minister
Shinzo Abe won the elections on Sunday and increased hopes for more fiscal stimulus in Japan. It's been a horrible time for Burberry. The British
fashion retailer has replaced its chief executive, Christopher Bailey. The shares closed 4 percent higher on the announcement. Questions were raised
during Bailey's reign when he missed profit targets in the stock lost more than 30 percent over the past year. Now he will remain. Mr. Bailey says
the creative director. The new chief will be Marco Gobbetti, the luxury French brand Celine, chief executive. He takes over next year.
Shares of Nintendo aren't just up. They're rocketing. Powered by the force of the Japanese electronics company that released a new smartphone
game featuring characters from the franchise Pokemon. It is a smash hit. People are talking about it. They're doing it. The shares are up 9
percent on Friday. They are up nearly 25 percent on Monday. CNN's Nick Parker explains how people search for Pokemon characters in the real world
around them, all part of this somewhat extraordinary game.
(BEGIN VIDEOTAPE)
NICK PARKER, CNN CORRESPONDENT: this is New York's iconic Central Park. Built in 1858, it's known for hot dogs, its horses, and now, it would seem,
a host of brightly colored Pokemon characters just waiting to be caught. Just days after its release, Pokemon Go has captured the imagine
imagination of some people enjoying a stroll.
[16:25:03] UNIDENTIFIED MALE: I haven't seen anything that comes close to it. There's been other GPS games, but there's never been one this popular
or this in demand.
UNIDENTIFIED MALE: This is my first time actually playing the game, because I have time. I'm just surprised how -- it's virtual, how the
reality, it's like it's right in front of you.
PARKER (voice-over): The engrossing nature of the game has given rise to a series of bizarre events around the world. These gamers from New Zealand
hide a kayak to get to a Pokemon gym which happened to be out on Lake Wellington. In the United States, one user uncovered a body while
following the game. And four suspects were arrested, accused of lying in wait for gamers and then robbing them at gunpoint. User awareness of their
surroundings is one potential issue.
UNIDENTIFIED MALE: It's like hard to pay attention. I was walking in my backyard and my dog jumped out at me. I thought it was Pokemon.
PARKER (on camera): A little worrying.
UNIDENTIFIED MALE: A little bit.
PARKER (voice-over): But some of the benefits are also clear.
UNIDENTIFIED MALE: It makes me more proactive. Oh, I'll do X, Y, Z in one Go. Now it's I'll go to a shop that a few block further.
PARKER (on camera): is it helping you get fit?
UNIDENTIFIED MALE: Yes, definitely. You know, I saw, I mean, it was like the NFL has trying to get kids fit for 20 years and Nintendo did it in 24
hours.
PARKER: So the game getting users off their sofas and out into their neighborhoods to explore. By any measure this is a huge step forward for
augmented reality, giving Nintendo a much-needed shot in the arm as investors are very stable of other much loved characters for future
potential. Nick Parker, CNN, New York.
(END VIDEOTAPE)
QUEST: CNN's Jose Pagliery is following the story. He found his favorite Pokemon character at his desk. Jose, look, I think in the interests of
conflict of interest, we need to declare you're a geek on this.
JOSE PAGILIERY, CNN MONEY CORRESPONDENT: A little bit, sure. Look, I'm 30 years old. I was part of the generation that grew up with the trading
cards and the video games and the TV show. What we have here is a huge step forward for Nintendo, because they've managed to take this, the old
game, right, Gameboy. This little cartridge, and now it's on your phone. And it's not just that. It's that augmented reality projects these
creatures into the real world. It's a huge step forward. When people talk about virtual reality, an augmented reality in real life being a success,
this is the first iteration of that kind of thing.
QUEST: Ok. I'm going to so regret this question, my ignorance level.
PAGILIERY: Go ahead.
QUEST: You start off and you're walking around, and just to prove, I'm not advertising one over the other, you're walking around and you see these
Pokemon thingamajig's whatsits names, what do you do?
PAGILIERY: You try and catch them.
QUEST: What do you mean you try to catch them. They're not real. I'm sorry to disappoint you, Jose, they're not real.
PAGILIERY: Hey, look, real life might be a digital projection. There are theories about that too. Anyway, so look, you throw these balls at them.
You try to catch them and then eventually you try to fight them. That's what the Pokemon world is. And it's really neat because what this game
does it lets you explore your neighborhood. One of the things I found most fascinating, while trying this out myself, was that whoever is taking
pictures for this game, they've mapped it out to real maps, OK, across the world. I can look up and see etches on a statue somewhere, I can see real
life things that appear in the game. It's real life meshing with digital life. It's making people get off the couch.
QUEST: What are you looking at? You're looking at a real picture -- are you looking a camera picture of the place?
PAGILIERY: Well, it's a mix, right? You see your character walking around this virtual world. But when a character appears, when a Pokemon appears
nearby you and it actually works with your map to tell you that, then you can see through the camera, you can see a Pokemon next to a tree or on a
bench or on the floor.
QUEST: Why doesn't the camera say, careful, there's a railway line ahead of you, careful, there's I-95 or the M-1 motor way right in front of you,
and you might actually want to think twice about that, because you're about to fall down a ditch.
PAGILIERY: You know, It's fair to say, and it's the first iteration of this. When you start the game, it actually warns you to be careful about
your surroundings. Look, we're going to have mistaken, because that's real life, right? Any game that gets you off your couch, you're going to have
things happen to you that aren't on your couch. Now it's worth noting that just in the last few hours, a bit of dark news for Nintendo and the maker
of the game Niantic, because we've found that the permissions that it asks for on your phone for you to play the game, it actually lets these
companies read all of your Google accounts. So it's your photos, your e- mails and everything else. We're trying to still figure out whether this is a mistake on the part of the companies that built this game or not.
QUEST: And please come back next week and tell us, or later this week and tell us, what's their advantage, what will they learn from that. I mean,
what information can they glean?
PAGILIERY: This game is free. It's free. And any time you have a free app, typically you, the user, are the product.
QUEST: No, in this case it's you, the user.
PAGILIERY: That's true.
QUEST: Geeks anonymous. Jose, good to see you, sir.
PAGILIERY: Likewise.
QUEST: We're going to turn our attention to the very serious difficulties of extraordinary complexity, the crippling shortages in food and supplies
in Venezuela. Now thousands of Venezuelans are heading to Colombia, in search of basic necessities, crossing the border for food. Paula Newton is
in Caracas for us this evening. It's QUEST MEANS BUSINESS and you're most welcome.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. More QUEST MEANS BUSINESS in just a moment. Venezuelans are crossing the border in desperate search of food
and supplies. We're in Caracas in just a moment.
And a knockout deal. The Ultimate Fighting Championship sale, it's the biggest sale ever in the world of sports. And for all of that this is CNN.
On this network, the news always comes first.
CNN has confirmed that two law enforcement officers have been killed in a courthouse shooting in the U.S. state of Michigan. Shots were fired at the
Berrien County courthouse in St. Joseph, Michigan just a short time ago. Local officials tell CNN the two victims were the bailiffs and the gunman.
The gunman is also dead. A witness reports what she saw.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE WITNESS: I live about a block away and I just saw a barrage of cop cars and ambulances leaving, and fire trucks. And I just
knew something bad was going on right away. So I have colleagues and friends that work in the government. So I stopped to parking lot right
outside of the courthouse and just asked do people know what's going on? There were only a few people I had talked to who had been able to it out of
the building. They said they heard shots fired on the third floor. They were told to evacuate immediately. They got out. I offered them rides
home, or help. They wanted to stay. They couldn't leave because their colleagues are inside, trapped in there.
I've gotten some word from other friends who work in local government buildings, they said they are on lockdown right now. They've been trying
to relay information to me as they find out what's going on. I've heard that it was an active shooting. Just until a few minutes ago, I believe.
It's gotten under control. Don't know how many shooters. Apparently there were at least one hostage. And from what I've heard from a former St. Joe
police officer, that he said there has been two county clerks that have been shot. And another friend who works in the government says they've
been confirmed dead.
(END VIDEO CLIP)
QUEST: Now let me just remind you, in case there was any lack of clarity, Berrien County, Michigan sheriff says two bailiffs have been killed, a
deputy sheriff has been wounded, and the suspect has also been killed. Three people in total dead, including the suspect.
Theresa May is going to be the next prime minister of the United Kingdom, after being named leader of the Conservative Party, when her final opponent
gave up. David Cameron announced his resignation moments later. He will leave office in the next two days.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: Obviously with these changes, we now don't need to have a prolonged period of transition. And so tomorrow I
will chair my last cabinet meeting. On Wednesday I will attend the House of Commons for prime minister's questions. And then after that, I expect
to go to the palace and offer my resignation. So we'll have a new prime minister in that building behind me by Wednesday evening.
(END VIDEO CLIP)
South Sudan's president has ordered an immediate cease-fire today after violence in the country's capital, Juba, flared up once again. Heavy
gunfire throughout the city has left dozens dead since the fighting erupted last Thursday. UN officials worry that the rival forces loyal to the
president or the vice president may reignite South Sudan's bloodied two- year civil war.
The presumptive U.S. Republican presidential nominee, Donald Trump is back on the campaign trail. With him is New Jersey governor and, if rumors are
to be believed, possible vice presidential candidate, Chris Christie. According to a source, Christie has received a full vetting for the
position.
The Japanese Prime Minister, Shinzo Abe says he will press ahead with economic reforms after his ruling coalition won a majority of seats in the
country's upper house on Sunday. The vote is seen as a sign of confidence in the plan called a Abenomicss. The Prime Minister's victory could lead
to a looser restriction on the Japan's military.
Thousands of Venezuelans have crossed into Colombia on Sunday, desperate to buy food and supplies, as Venezuela grapples with a severe shortages of
basic goods. President Nicholas Maduro temporarily opened the border to offer access, so things like medicines and groceries could be obtained.
Venezuelans described the conditions in their country as frantic.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): We are hungry. We are in need. There is no market. And where they do so, there is such commotion that
people hurt each other to buy any little thing.
UNIDENTIFIED MALE (through translator): There are no birth control pills. Neither is there milk, nor diapers for children. So what are we to do?
There is nothing. The shortages are continually worse. I would like the President Maduro to see these images and realize what we want.
(END VIDEO CLIP)
QUEST: Paula Newton is back in Caracas. Paula, before we hear your report, just tell me, you were there recently, a few months ago. Is the
situation getting worse that you can see?
PAULA NEWTON, CNN ANCHOR: It is, and it isn't. I want to make clear those scenes you just saw from the border of Colombia, that's actually good news.
And that will alleviate some of the hunger that people are really living through in that area of the country. I want to stress, that's a long way
away from here in the capital. The power has come back on. The rolling cuts are now off. That has alleviated a certain amount of stress. What I
can tell you though, Richard, is in terms of those lineups. It terms of what people are actually eating every day, it has gotten much worse in the
last eight weeks. Where people were having two meals a day, now they're having perhaps just having one. It's a really a scene of utter desperation
every time you're in these lineups with people here in Venezuela looking for food.
(BEGIN VIDEOTAPE)
NEWTON: Food riots and looting. This is now the only daily diet Venezuelans can count on as fuel shortages fuel an already devastating
level of crime. Watch here as security cameras detail the chaos. Looters swarming a bakery and deli in Caracas the capital. People hopping over
counters grabbing whatever they can, even the cash register. A free for all for food and a new battleground in a country that was already one of
the most dangerous in the world. Crime has been spreading like contagion through Venezuela. With nightfall many self-imposed curfew, but some have
learned it's not enough.
UNIDENTIFIED FEMALE: And with our heads on the ground, like that. And they put the gun to my head.
NEWTON: What where you were thinking at that time?
LUISA SOLOMON, "EXPRESS KIDNAPPING" VICTIM: I thought it was over.
NEWTON (voice-over): Luisa Solomon, Cesar Valsa (ph) explain how they survived an express kidnapping, Venezuelan style. They were driving a few
hours outside the city, took a wrong turn, and, they say, an armed gang surrounded them.
SOLOMON: They were scary. I couldn't see their faces because they looked evil. Evil. Seriously.
NEWTON: They tried to escape but they were hunted down in remote woods, battered and frantic they started to negotiate for their release. The
kidnappers named their price.
NEWTON: $1,000 U.S.
SOLOMON: Exactly. And they asked that. We didn't have that. I told him no, there's no way in hell that our family will find that.
NEWTON (on camera): You had the courage to say to him there's no --
SOLOMON: Yes. In that moment we talked to them like serious.
NEWTON (voice-over): they negotiated their lives down to a few hundred dollars. Their families pulled the money together and less than 24 hours
after the ordeal began, they were released. But they knew all too well how it could have ended.
SOLOMON: There was a case where a couple was kidnapped and the guy shot at the car and burned it with them inside.
NEWTON: they tell me they spoke to police but no one has ever been arrested. Express kidnappings still flourish, they say. Random,
terrifying, and adding to an unnerving collapse in civil order here. Hungry and desperate Venezuelans adding to the crime of criminals and gangs
as anarchy becomes a real risk.
(END VIDEOTAPE)
NEWTON: You know, what's extraordinary here, Richard, is whether you're talking about trying to get food or medicine, also incredible shortages of
medicine going on here, or those people that we just spoke to who really fear for their own security. They all tell me that they feel like they're
living in a war zone. They feel like they're in combat every day to just fight for the basics. In the coming days, Richard, we'll show you some of
their stories.
QUEST: Paula, what is the difference, in a way, between the city and the rural? I mean, is the situation -- I mean, does it get worse the further
you go from the capital, or better, as best you know?
NEWTON: As best I know, and we haven't been outside the capital this time. But we were there a few weeks ago. And from the reports we hear, Richard,
it's much worse. Of course this is the capital city, all the resources tend to flow first to Caracas. When you get to some of these regions,
especially when you're talking about the lack of food. Especially when you're talking about lack of medicine, the security situation, all of it
much more difficult outside of the capital.
QUEST: So I can hear viewers saying, if this is the case, how come the Maduro is still there? I know he lost parliamentary elections, certainly
he doesn't have the parliament with him. But what's his grip on power like, say in the absence of, say, military strength to keep him there?
NEWTON: Well, there's two things, very clear. One is, he has the constitution on his side right now. That constitution was changed by his
predecessor, Hugo Chavez. That means he has the Supreme Court in his back pocket. It means that the opposition, which means the legislature, can do
almost nothing, and they've done nothing since they've come to power, one. And two, he does, we are told, from people that we speak to on the streets,
they see evidence that everything, necessities, medicine, food, the best is kept for people in the police, the military, and close to the political
party. And through this he seems to be able to maintain his place in power. The Maduro government will tell you that I'm absolutely wrong, that
this is economic warfare and that it is the opposition and the private sector that is really burdening the people of Venezuela. At the end of the
day, Richard, the political battle really means nothing. I had two people quote the exact same line to me in the last few days, I am not with the
government, I am not with the opposition, I am a Venezuelan and I am in dire need.
QUEST: Paula, you'll be there through the course of the week, and we'll be looking forward, in sort of a grim way, to hearing your reports, which will
bring the true awfulness of the situation to us. Thank you.
Euro 2016 ends in heartbreak for the host country, France. In Lisbon, a very different story. The victorious team returns home. Not surprisingly,
it was a hero's welcome.
(COMMERCIAL BREAK)
QUEST: It's over for now. The star player came off injured. Now Portugal stunned the world of football by defeating host France, and they won Euro
2016. The first time the country has ever won a major football title. The fans celebrated in style. Tens of thousands of them packed the streets of
Lisbon to welcome their heroes home. Correspondent Isa Soares is in the Portuguese capital for us tonight.
(BEGIN VIDEOTAPE)
ISA SOARES, CNN WORLD SPORT (voice-over): it was a moment this nation has long been waiting for, as Portugal's football team, so often the bridesmaid
but never the bride, finally sealed the deal. Bringing home their first major trophy ever. History, as captain Cristiano Ronaldo, simply put it.
The unlikely champions of Europe were greeted by a sea of green and red as they made their way through the streets of the capital, Lisbon. Inside the
presidential palace, the president praised the team for their grit.
MARCELO REBELO DE SOUSA, PRESIDENT OF PORTUGAL (through translator): The difference between yesterday and today is that today, due to you, we have
more reasons to believe in Portugal.
SOARES (on camera): Inside, they're being decorated by the president of Portugal. Meanwhile, outside crowds erupting in festivities and screaming.
Many for a player many are calling an unlikely hero.
SOARES (voice-over): Ronaldo a godlike figure in this country, who has been front and center on and off the pitch, leading his team through the
celebrations, and not to be overshadowed by the coach, Fernando Santos, who described his team as simple as doves but wise as serpents. Praised by
fans for his tactics as well as his strategy.
UNIDENTIFIED MALE: I think he's a good manager. He matched our expectations. We were expecting he would get to the final and he did. He
promised we would only get out of there on the 11th, and that's what he did. Yes, sir, congratulations to him.
UNIDENTIFIED FEMALE (through translator): I'm young. I'm 30. And my mom is 59. She's going to turn 60. And we have never felt this way. To win a
trophy like this. In 2004, we cried for Ronaldo. Today we cried with him, but this time with joy.
SOARES: It's been a victorious home coming for a team few expected would be today be crowned the kings of Europe. Isa Soares, CNN, Lisbon.
(END VIDEOTAPE)
QUEST: Literally going out of business. That's how the Fertitta brothers described the martial arts franchise UFC when they bought it. Now they're
making the richest sale in the history of professional sports, from out of business to giant profits.
(COMMERCIAL BREAK)
QUEST: If you combine boxing, wrestling, martial arts, and a fighting cage called the octagon, put it all together, and seconds away you have the UFC,
the Ultimate Fighting Championship. It's just clinched a $4 billion sale. It's the biggest ever in professional sports. A staggering knockout for
the casino operators Lorenzo and Frank Fertitta, who bought the controversial franchise for only $2 million in 2001. Phoenix Carnevale is
a martial artist and fight commentator and she joins me now. Now listen, $4 billion. Maybe I'm just alone in this thing. One didn't realize that
UFC was that big and would command that much money. Even you must have been a little bit surprised.
PHOENIX CARNEVALE, MARTIAL ARTS MEDIA PERSONALITY: don't know. I've been on board for about 15 years since it started, so I've watched this become
the fastest growing sport in the world. And I believe that the UFC and mixed martial arts are the biggest thing to happen to martial arts and pop
culture since Bruce Lee. This has been rumored. It's been talked about. It's been denied, but today it was confirmed that the UFC was purchased by
WME-ING, the biggest juggernaut in media. And we're thrilled. It's important to know they're not the sole owners though.
QUEST: No, there are two others. What WME-ING -- what will they bring to it? The Fertitta brothers, or giving up if you like, how do the new owners
advance the cause of a sport that is clearly so popular already?
CARNEVALE: Well, you know when they bought it to begin with, when the Fertitta's bought to begin with, they took it as far as they can go. And
then they did the Fox deal. And that was huge. Because then it was on a major network. And now with WME-ING, they're involved with everything.
They are the media juggernauts. So that's publishing, and that's movies, and they already represent Ronda Rousey. So they put them way involved.
It's way bigger in the entertainment front than anything else. So I think the Fertitta's took it as far as they could take it. We know a lot of the
partners here are also big into technology. We know how huge technology is. So it's just bigger and better things all around.
QUEST: And that's fascinating, because clearly, you know, the plan to take something that's very successful, very profitable, and churns out shedloads
of money, and then turbo boost it with the power of an ING, it's almost frightening.
CARNEVALE: Well, yes. A lot of these are tech companies as well. We introduced something called fight pass maybe about a year and a half to two
years ago, and that was very successful, and that's a digital media platform. So we know that's going. And then we've had crossover, think
about Ronda Rousey being in the "Entourage" movies, and things like that. And then all of the books being written by fighters. So this really could
mean a lot of big things for it becoming much more of a household name.
QUEST: Finally, hand and heart, with a dose of sort of looking back in the rearview briefly, are you a little bit sad that, you know, it's become so
big, but you remember it for what it was and when it began and the fighting spirit that took it where it is?
CARNEVALE: Well, the thing that I think upsets some of the purists the most is we're afraid that it's becoming too much entertainment and not so
much sports and martial arts. As long as there's good fights, with well- deserving fighters, and that it's not so much about the story line but the story about good competition, I think we'll be OK. And we'll be proud that
these fighters might have the opportunity to make more money. I just hope that it doesn't become too much about storylines.
QUEST: Couldn't have put it better myself. A good fight with two well- matched fighters, ding dong, it will be great. Thank you very much.
CARNEVALE: Thank you for having me.
QUEST: We'll have our Profitable Moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. Some might call it socialist. Others say it's not in the true spirit of Toryism. But the fact is Theresa May's
assault on the big business, basically saying it can no longer be business as usual. Now Mrs. May, of course, is threatening to have shareholder
votes on pay to be binding. There's going to be employee representation on the board. And we'll know the ratios of CEO pay to average pay in the
company. It will be more than just that. The culture has to change. And that's really what Mrs. May is saying. That the rich take all, divide,
inequality, can no longer continue, and that business needs to recognize it has to be at the core of those changes. I'm only surprised that it's eight
years or so after the great financial crisis, it's taken this long for these changes to actually be introduced. But Mrs. May has let everybody
know in Britain, they are coming. That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I
hope it's profitable. I'll see you.
END
