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Quest Means Business
Obama Speaks at Service For Slain Officers; Cameron Prepares to Move Out of 10 Downing Street; Cameron to Step Down Wednesday; Theresa May Will be Next British Prime Minister; EU Finance Ministers Meet to Talk Brexit; Train Crash in Italy Kills at Least 23; Dow Closes at Record High; Venezuela Seizes Kimberly-Clark Plant; Venezuelans Desperate For Food and Supplies; China Rejects South China Sea Ruling; Bernie Sanders Finally Endorses Hillary Clinton
Aired July 12, 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] ZAIN ASHER, CNN ANCHOR: Hello, everyone, I'm Zain Asher at CNN center. We'll have our business agenda in m in just a moment. First,
poignant moments in Dallas, Texas, as a city shattered by violence came together to try to heal. Black, white, civilian and police, Republican and
Democratic. They were united there standing together united. Their goal today, of course, was to pay tribute to five fallen police officers who
were shot and killed there, last week. President Obama is believed to have written his own speech. These words came from his heart. He said the five
slain officers shared a commitment to something much larger than themselves. Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, U.S. PRESIDENT: Like police officers across the country, these men and their families shared a commitment to something larger than
themselves. They weren't looking for their names to be up in lights. They tell you the pay is decent but wouldn't make you rich. They could have told
you about the stress and long shifts. They would probably agree with Chief Brown when he said that cops don't expect to hear the words "thank you"
very often, especially from those who need them the most.
No, the reward comes in knowing that our entire way of life in America depends on the rule of law. That the maintenance of that law is a hard and
daily labor. That in this country, we don't have soldiers in the streets or militias setting the rules. Instead we have public servants, police
officers, like the men who were taken away from us.
(END VIDEO CLIP)
ASHER: President Obama speaking there addressing that grieving community in Dallas, Texas. We'll have a report from Dallas shortly. Our Ed Lavandera is
going to be joining us later on in the show. First, other news we are following.
David Cameron is spending his final night at number 10 Downing Street, making final preparations for stepping down at British Prime Minister after
about six years. Moving vans where actually spotted outside number 10 as Cameron gets ready to hand over the keys to the kingdom to his successor,
Theresa May. Cameron actually held his final cabinet meeting today and will actually formally, this is the process in the U.K., he will formally submit
his resignation to the Queen on Wednesday. And then Theresa May going to be also meeting the Queen as well. Joining us now to discuss this from London,
it's CNN political contributor, Robin Oakley. So Robin, here what I don't understand. David Cameron essentially quit as prime minister because he was
a remainer and the country voted the other way. Now Theresa May was also a remainer is taking over. Just explain to our views, why is she fit for the
job if David Cameron wasn't?
ROBIN OAKLEY, CNN POLITICAL CONTRIBUTOR: That's a very good question. David Cameron invested everything in the referendum. His full authority as prime
minister. He felt the moment the country voted against his wishes on the referendum, the country voted to come out of Europe, he had asked the
country to stay in Europe. He felt that he had lost all his authority as a prime minister. He had to go. So he announced he would be resigning as soon
as a new Conservative Party leader had been found to be the new prime minister.
Now, of the candidates who put themselves forward to be leader of the Conservative Party and thus become prime minister, Theresa May was much the
most experienced. Although she had also voted for remain. The remain candidates, one way or another -- sorry, the leave candidates one way or
the other knocked themselves out with a lot of infighting at Westminster and she was left on the final ballot party going to conservative activists
with one other representative of the leave campaign, and that was Andrea Leadsome. Andrea Leadsome then pulled out two days ago and said she didn't
think she could get enough support to be able to run an effective administration. And that left Theresa May with not a contest but a
coronation.
Although she was a remain campaigner, she only played a small part in the campaign. She wasn't a vociferous voice to remain in the European Union.
Many of her fellow MPs felt that she was a bit of a Eurosceptic at heart. So she's won the support of two thirds of the Conservative MPs anyway and
was very much the frontrunner for the leadership even before her rival pulled out. I think she will be largely trusted by the Conservative Party
to take forward the cause of taking Britain out of the European Union. But the leave campaigners will be watching her every step of the way, Zain.
ASHER: But she has said though Brexit means Brexit. I want to talk about Theresa May's future in a second, but first I want to touch on David
Cameron's legacy. What do you think my children and my grandchildren should know about David Cameron?
[16:05:00] OAKLEY: David Cameron stood for a compassionate, modernizing conservativism. One of the pillars that he will look back on as an
achievement in his time was the legalization of gay marriage in Britain. That was the sort of modernizing conservativism that he stood for. But at
the end of the day, he will look back with sadness, I think, on his period as prime minister because he didn't want to take Britain out of Europe. His
huge gamble on that designed to try to end the splits in his Conservative Party, which has been divided over Europe, ever since Margaret Thatcher.
David Cameron thought he was going to solve that by having the referendum and winning it. He didn't. By having that so, by having that referendum,
he's now raised yet again the question of the United Kingdom splitting apart.
Because Scotland voted to remain in Europe. The Scottish voters in opposition to the rest of the United Kingdom. That has revived calls for a
possible referendum on Scotland leaving the union, which again, would be something that David Cameron would not want to be remembered for. He also
trying to get Britain involved with America in military action in Syria and that was turned down by a vote in the house of commons. I think what he
will take some credit for, with his chancellor of the exchequer, George Osborne, was getting the economy back in better shape to withstand the kind
of crisis that has come with the Brexit decision, Zain.
ASHER: And Robin, just very quickly, if I could just ask you quickly. Who do you think will be in Theresa May's cabinet? Are you thinking Gove? Are
you thinking Johnson? Or neither?
OAKLEY: We can't tell. We don't know how bold she's going to be. She's been a careful politician up until now. What we do think is that Phillip
Hammond, former foreign secretary, is likely to be her chancellor of the exchequer. The question is what happens to George Osborne, the current
chancellor of the exchequer? He'd like to be foreign secretary. But he was a remain voter and the Brexiteers won't really trust him in that position,
Zain.
ASHER: Robin Oakley, live for us there, thank you so much, we appreciate you joining us.
Europe and Britain are bracing for an economic downturn following the Brexit vote. Instead of predicted growth, the EU's economic chief says the
Eurozone could see a contraction of up to 1/2 of 1 percent next year. Britain's economy could fall by 2.5 percent as well. Take a listen.
(BEGIN VIDEO CLIP)
PIERRE MOSCOVICI, EUROPEAN COMMISSIONER FOR ECONOMIC & FINANCIAL AFFAIRS: The longer the uncertainty lasts, the costlier it will be for the economy.
So once again, it is essential, as we see a very important acceleration of the change in Great Britain with the arrival of May by Wednesday, it is
essential both for political and economic reasons that we continue calling for a clarification of the situation as soon as possible.
(END VIDEO CLIP)
ASHER: The finance ministers of EU nations gathered in Brussels to talk about the economic impacted of a Brexit. Joining us on the phone to discuss
it is Pierre grown men yeah, the finance minister of Luxembourg. Pierre, thank you so much for taking the time to be with us. I know you're busy
right now. The one thing I want to talk to you about, is the fact there's so much talk about from Brussels that the U.K. should speed up its exit
from the European Union. From your perspective, what is the hurry, why would rushing triggering Article 50 be in Britain's best interest?
PIERRE GRAMEGNA, FINANCE MINISTER, LUXEMBOURG (via telephone): Well, first of all, I think that the Brexit vote was for many people a surprise. And it
seems that it was a surprise for the British government itself. So the Prime Minister Cameron announced in the beginning that he would stay until
October. And now in fact we have the good news that he's stepping down tomorrow and that the succession in his party has been solved. So I think
we have an acceleration here, which is really good news. Because if, as the EU, we want to negotiate calmly the exit of the U.K. Well then, first of
all, the United Kingdom has to trigger Article 50 of the EU treaty to start the negotiations. And before that happens, we are in the period of
uncertainty, of unpredictability, which is good for nobody.
ASHER: I totally understand the clime of uncertainty right now, but if you think about it from Theresa May's perspective, she's only just gotten this
job. She was a remainer, technically. So she's going to need time to negotiate the leaving strategy, she'll want to talk to Mark Carney. Isn't
that understandable that she's probably not going to want trigger it right away. He's going to want time to get her ducks in a row before triggering
something that could have disastrous economic consequences?
GRAMEGNA: Obviously we have now in fact won two months or nearly three months with the designation of a prime minister with Theresa May, which is
good news.
[16:10:00] The fact that she was in the remain campaign but not so vocal about it, gives her a very credible role. We must not forget that three-
quarters of the members of parliament in the United Kingdom were also in the remain camp. So it is important that the British government finds a way
of negotiation that can find a common denominator between all the parties at stake and also with parliament.
So it's a complicated situation. I think the summer holidays would be ideal to work out a plan for them and so that we can really get started. Because
the only way to get started is to start seriously with Article 50 so that as an EU, we can also understand and listen to what the requests are on the
other side, and what our requests are to organize this divorce in a civilized and peaceful manner.
ASHER: So let's talk about the strategy for negotiations, because Jean- Claude Juncker used to be prime minister of your country, Prime Minister of Luxembourg. If you could give Theresa May any advice about how to negotiate
with him. How to negotiate a Brexit deal with someone like that, what would it be?
GRAMEGNA: I think I'm too much a junior politician to give good advice to Theresa May who has been for six years minister of the interior, and very
successful at that. Jean-Claude Juncker is also very experienced politician. I think that at the end it boils down to the fact that there
are some cornerstones in the EU policies, like single market, like a few other essential things that make Europe attractive. Obviously, the game
will be, in a way, for the United Kingdom to ensure that they keep this European Union market. And on the other hand for the European Union, it
will be the challenge that you cannot have a cake and eat it at the same time. So it will be a complicated negotiation.
ASHER: All right, Pierre Gramegna, thank you so much, for taking the time to be with us, sir, thank you, we appreciate that.
The end of the uncertainty over who will be the next U.K. prime minister has helped the pound bounce back just a little bit against the U.S. dollar.
The pound is up nearly 2 percent. The pound actually dropped, as I'm sure you remember a couple of weeks ago, to 30-year lows in the days following
the Brexit vote. As you can see now, it's bounced back ever so slightly. Joining us now to discuss this from London is Karen Briggs. Last week she
was appointed to the newly created position of head of Brexit at KPMG. Karen, thanks for being with us. As one of the heads of KPMG, I'm just
curious, what sort of advice are you giving right now to businesses in this climate of deep uncertainty?
KAREN BRIGGS, HEAD OF BREXIT, KPMG: Good evening. We're really telling businesses to be quite British, actual, keep calm and carry on. So really
look at some of the facts. There's a lot of speculation out there and a lot of uncertainty. And were really say to businesses, get engaged in the
debate, make sure that you're engaging with government and your trade associations. But really start to look at your own business. Look at your
people agenda. Look at the other issues that you're really facing yourselves.
ASHER: Do you think that London is still going to remain the top center of international finance after Brexit or do you think that center is going to
move?
BRIGGS: London and the U.K. are very attractive for a number of reasons. It's easy to do business. It's very open for business. People seem to like
the legal and regulatory framework. It's very attractive for talent to come and work in London. It's very family-friendly. There's a big human side to
this, I think. And a very good base for talent to be working.
ASHER: You know, British businesses who hire foreign or European workers are in a bit of a tough position right now. You have a lot of workers, some
of them I'm friends with, who are asking, what's going to happen to me? Am I going to be sent home? Am I going to be let go? How do businesses right
now provide reinsurances to those workers in this climate, do you think?
BRIGGS: What we're talking to clients and what we're doing actually within KPMG, and our own organization. We've got a lot of international workers as
well as EU workers. So we're trying to support them. Discuss the issues with them. One of the things we've said publicly as a firm is, could we
actually grandfather some of the EU nationals into our U.K. workforce post- Brexit.
ASHER: Some EU finance ministers now want Great Britain to trigger Article 50 ASAP, as soon as possible. They say there's no time to waste. There's
uncertainty. There's no time to waste. Is that wise, do you think, or is it better to take a step back and not do it in such a rush?
[16:15:00] BRIGGS: I think your previous speaker also spoke about this. It's very complex and there's a lot of issues to consider. Whilst there's
uncertainty and we need more certainty and a calming message, I think that we need to take our time and to think about the issues and do it properly.
ASHER: Is the U.K. right now flirting with a recession, do you think?
BRIGGS: The pundits have all sorts of views out there in the U.K. about whether we are or whether we aren't. There's a lot of volatility and a lot
of uncertainty. Our own KPMG economists said that we could have a technical recession at the early start of next year. It's quite difficult to say at
the moment because there's so much change going on.
ASHER: Will businesses be put off from investing in the U.K.?
BRIGGS: I think that's a mixed bag as well. Obviously, money outside of the U.K., the pound is cheaper now. So you can get more for your money. We're
seeing some predatory interest in U.K. businesses. I think Siemens said today that they're going to keep investing in the U.K. This is moving day
by day. We don't see a big move of people investing away.
ASHER: Is there a difference in how different industries are handling the uncertainty?
BRIGGS: Well, my background is in financial services and regulation. And certainly I think FS is much better, much further ahead and much better
planned along with the regulators around what some of the issues and challenges are. We certainly found as part of the questions that clients
are asking us, more than 70 percent of them come from financial services firms.
ASHER: Karen Briggs live for us there, thank you so much, we appreciate your perspective. Thank you.
BRIGGS: Thank you.
ASHER: Ireland has posted a massive GDP gain in 2015. It's revised actually show a whopping 26 percent, 26 percent jump in growth last year. A figure
that is so staggering that some economists are even questioning its relevance. The original estimates didn't include the activity of
multinational companies. Still, Ireland is outpacing others in Europe. A Brexit, though, could put a damper on growth. S&P warns that Ireland is the
country most exposed to Brexit. Joining me now to discuss the view from Dublin is Ian Talbot, CEO of the Irish Chamber of Commerce. Ian, thank you
for being with us. Explain to us, how much are Ireland's economic interests jeopardized by Brexit, especially when you consider freedom of movement and
trade as well?
IAN TALBOT, CEO, IRISH CHAMBER OF COMMERCE: A lot of issues arise with Brexit. Good evening. We have for example a land border with the U.K. We
have a 500 kilometer land border, 200 road crossings, and a huge amount of trade. In terms of trade, we have about 1 billion euro a week of trade.
Pretty evenly spaced between Ireland and the U.K. So any impact on that will be very relevant in the Irish economy. Equally, the GDP figures, you
mentioned the 23.6 percent figure we're still trying to unravel. But there's certainly some impact of movement of patterns and movement of
international aircraft leasing in there. There's a core of 8 percent growth in GDP that everyone is very happy with. That's a great figure to be
starting from going into potentially a turbulent and uncertain time.
ASHER: So it's really we should be looking at that figure at 8 percent as opposed to the 26 percent number that we got. Talking about Brexit in
particular, do you think I'm going to see some companies moving their headquarters from London to possibly Dublin? What are the chances of that,
do you think?
TALBOT: I think it's a possibility. And Ireland will certainly be profiling itself as one of the most competitive countries in the world. The most
recent IMD report, we came seventh globally in competiveness and number one in the Eurozone. We're a very attractive economy to move to. In fact, your
last speaker was talking about the financial services industry. There are certainly opportunities in the financial services industry for banks,
financial institutions, looking at it European passport legislation to move to -- or to locate in Ireland if there is uncertainty for a long period
over Brexit.
ASHER: You talked about the issue which a lot of people are talking about regarding the border, of course Northern Ireland being part of the U.K. is
now going to be leaving the EU. That means there will be likely border crossings between Northern Ireland and the Republic of Ireland. Who is
going to pay for all of that?
I think from our perspective it's very clear, Britain has elected to vote to leave Europe. They clearly see immigration as a key component in that
vote. So if Britain wants to secure their borders, I see that as being their issue. But we do have to look for practicalities of this here. We
have 200 road crossings. We have about 30,000 people move across the border every day just to go to work in effectually their own communities. So we
can't just close those borders without a lot of effort to find alternative solutions.
[16:20:06] ASHER: You have a complex situation, especially for your region in particular. Ian Talbot, live for us there. Thank you very much, we
appreciate you being with us, sir.
Time for a quick break here on QUEST MEANS BUSINESS. When we come back, a live report from Dallas where there was a memorial service for the five
police officers who were gunned down brutally last week.
(COMMERCIAL BREAK)
ASHER: I want to return now to Dallas, where President Obama spoke a short time ago at a memorial service for five police officers who were killed
last week. CNN's Ed Lavandera was there. So Ed, for those of us who missed this memorial service, what words of comfort did the president offer and
more importantly, will they have a lasting effect, do you think?
ED LAVANDERA, CNN CORRESPONDENT: I think that's the question that's left unanswered. This is not the first time that President Obama has found
himself in this position. Some have described him as consoler in chief during these difficult times, after these types of high profile shootings
here in the United States. He talked, and this is a theme he had picked up on a couple of days ago, and really pushing that theme again today. And one
of the main points being that the country is not as divided as many people want to think it is or like to think it is at this point, or however it
might seem at this point. Insisting that the country is not as divided.
So it will be interesting to see how that theme picks up. Remember, this is also a week, a very somber week in Dallas. The funerals for the five police
officers beginning today, but president Obama coming here to Dallas to remind not only the families of those victims, but trying to make the case
to the American people that the country is not as divided as many people feel like it is at this point.
ASHER: Ed, the whole country is watching Dallas right now with so much emotion and sympathy. What is it like to be a police officer on the streets
of Dallas today?
LAVANDERA: You know, it's interesting, I've seen the memorial here outside of the Dallas Police Department headquarters, which is about a mile away
from where this deadly attack took place last Thursday night, and Friday morning. There's been a constant stream of people coming to this area
wanting to pay their respect. Leave the flowers and messages of hope. There has also been a steady stream of police officers. Not just Dallas police
officers but colleagues of these officers, but officers from around the state, from around the area. Coming here to pay their respects as well.
[16:25:00] And what you see is many people going up to those officers, thanking them for their service, wishing them well. I've seen that in
various parts of the city, as you walk around. The question becomes how long does that last? How long do those feelings continue? Or after a few
days does all that kind of go by the wayside and does it bring the two sides, the opposing sides here all together over the coming weeks. I think
a lot of people just think it's a question of time at this point.
ASHER: All right, Ed Lavandera, live for us there, thank you so much, appreciate that.
Let's talk more about this. I'm joined now by Gregory A. Thomas who joins us from New York. He's the president of the U.S. National Organization of
Black Law Enforcement Executives. We appreciate you being with us, sir, especially because you can give us both perspectives. I do want to touch on
one thing that I think is very important. Obviously, President Obama is the nation's first black president, he got elected on a platform of unity.
There is so much pressure on him right now to bring the country together. Is there anything you think that he can actually do to change things in
concrete terms?
GREGORY A. THOMAS, PRESIDENT, U.S. NATIONAL ORGANIZATION OF BLACK LAW ENFORCEMENT EXECUTIVES: Thanks for having me, first of all. I'll tell you,
yesterday we met with the President in a lengthy two-hour meeting which was very candid on his part. He sat with us, meaning myself and seven other
presidents of major organizations here in the United States. And many of the discussions went towards him and his administration being unfortunately
responsible for some of what we are going through right now in the country.
I felt that that was personally irresponsible, because much of what he can do is make sure he's doing what he's doing now, by attending funerals and
making sure he's making the right statements in kind. But much of the work we're going through right now and the problems we're having now in the
communities laid bare because of local issues. It's not a national issue. It's a local issue. So the president and his staff, in my mind, no matter
who they might be, are at 30,000 feet. We're on the tarmac. We should be taking care of these issues on a regular basis every day.
ASHER: Give us a bit more of a deeper sense -- I'm not sure how much you can reveal -- but give us more of a sense of what you and the president
actually discussed. And what concrete changes he may have suggested.
THOMAS: Well again, it was a meeting that was obviously private but also candid on his part. He was concerned that we come together as organizations
and the White House to move past this moment, to make sure we're all united, to see through the process we're going through now, which is one
that is complicated, right? He made it clear that it's a combination of three things here. It's the shootings that happened in Baton Rouge, the one
that happened in Minnesota, but also of course the one that was -- the outrageous shooting of the Dallas police officers that happened recently.
Those things are interwoven right now. So the nation is hurting together. Everybody is mourning. It's a time now for healing.
And he was concerned about the need to take some steps going forward from his administration, for the remaining term of his time in office, with us
to ensure that we're getting what we need support-wise but also to make sure we tamp down the rhetoric. Tamp down the finger pointing, because when
you get right down to it, we are all one nation.
ASHER: You obviously listened to President Obama's speech a second ago. What do you think the aim was of this speech specifically, and do you think
he was successful?
THOMAS: Well, I can't say that I know what his aim was. I know one thing, as I mentioned earlier, it was thoughtfully consistent. Much of what he
said to us yesterday in that meeting was revealed today as well. And I think the message is clear, that he can see us through this, we are a
better nation than we are right now. There's moments in our history that have proven that. I think at this point going forward, it's his hope, my
hope, it's Nobles hope as the National Association of Black Law Enforcement Executives. It's our hope that we can come together and get past this
process that were going through right now and move forward as a country, united. Recognizing that there is some pain out there now, in certain
communities, because of policing that's gone bad, I'm not saying that all police are bad, but there's pain out there that has to be recognized and
appreciated when you see demonstrations.
ASHER: You know, there was a lot that stood out to me in that speech. One thing that I noted in particular is when he said, and I'm quoting, "We are
not as divided as we seem." Given what happened last week in this country, is that true?
THOMAS: I have to agree. I've seen, you know, the best and worst of times of the country. And I've also seen moments in the last few weeks that show
that we're united. For me, in my mind, again, you see police officers in Dallas marching with demonstrators who are there primarily demonstrating
against policing. And they're marching with them, taking photos with them, and then once the shooting breaks out, the police run toward the shots
fired, not away. They also run towards those demonstrating, protecting them. You can see video of them trying to push them back from where they
were going to be in harm's way. That showed me that police are there for you every day. Now, the coma is that there's sometimes there will be
challenges in policing as there is in all parts of the country. But this is a moment we can get past together as a country.
ASHER: As a black law enforcement official yourself, what changes would you like to see going forward?
THOMAS: Well, the change I want to see going forward is first for, no matter who you might be in law enforcement, to recognize the pain and in
some cases the consistent pain that distressed communities have gone through because of policing.
[16:30:00] That's not to say that policing hasn't solved some problems and saved some lived, I recognize that. But what I find is missing now is
recognition that the pain is real. Because the reality might be that crime is down in many of our major cities and local towns. And also there may be
less negative police contacts with citizens. That's the reality. But the perception isn't that. Because perception really drives reality for a lot
of people now. I hope we can understand, when people are demonstrating, instead of hearing what they're saying, we should listen more and not just
hear.
ASHER: Listen more and not just hear. Gregory Thomas, thank you so much for being with us. I appreciate your perspective, sir, thank you.
THOMAS: My pleasure, thank you.
ASHER: Time for a quick break here on QUEST MEANS BUSINESS. Coming up, Venezuela's economic crisis has reaches new heights as the government
seizes a Kimberly-Clark factory in the country. I'll explain, coming up next.
(COMMERCIAL BREAK)
ASHER: I'm Zain Asher at CNN center. There's more QUEST MEANS BUSINESS in a moment. Major companies are pulling out of Venezuela, making the economic
crisis there even worse. We'll have a live report for you from Caracas.
And Bernie Sanders gives his long-awaited endorsement to Hillary Clinton. First, the headlines at this hour.
Speaking at a vigil in Dallas for the five police officers slain last week, President Obama said the shootings exposed the deepest fault lines of our
democracy but insisted that America is not as divided as it may seem. Here is our Suzanne Malveaux with more.
(BEGIN VIDEOTAPE)
BARACK OBAMA, U.S. PRESIDENT: If we're to sustain the unity, we need to get through these difficult times.
SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): President Obama in Dallas today, sending a powerful personal message.
OBAMA: I'm here to insist that we are not as divided as we seem. And I know that because I know America. I know how far we've come against impossible
odds.
MALVEAUX: Carefully writing his own words of support and solidarity for a nation in mourning.
OBAMA: When all this takes place, more than 50 years after the passage of the civil rights act, we cannot simply turn away and dismiss those in
peaceful protest as troublemakers.
MALVEAUX: The stage was set by deadly shootings that have claimed lives, both black and blue.
OBAMA: We ask the police to do too much and we ask too little of ourselves.
[16:35:01] MALVEAUX: Perhaps more enduring than the words are the images. A lasting tribute for the five police officers killed in Thursday's sniper
attack.
OBAMA: An act not just of demented violence but of racial hatred. All of it has left us wounded and angry and hurt.
MALVEAUX: former Republican President George W. Bush joining his successor in a rare show of unity.
GEORGE W. BUSH, FORMER U.S. PRESIDENT: Those of us who love Dallas and call it home have had five deaths in the family.
MALVEAUX: Each expressing their condolences.
BUSH: Your loss is unfair. We cannot explain it. We can stand beside you and share your grief.
MALVEAUX: On route to Texas, the president also called the families of Philando Castile and Alton Sterling, the two African-American men killed by
police last week in Minnesota and Louisiana.
UNIDENTIFIED FEMALE: He was very pleasant. He spoke of his concerns and sent his condolences as well as Michelle.
MALVEAUX: The trip to Dallas marks a return for President Obama to yet another city, heartbroken. His 11th visit to grieve in an American mass
shooting since taking office.
OBAMA: I've seen too many families go through this. But then I am reminded of what the Lord tells Ezekiel. I will give you a new heart, the lord says,
and put a new spirit in you.
(END VIDEOTAPE)
ASHER: South Sudan says its international airport in its capital is now back open. It comes after a cease-fire was agreed to forces loyal to the
president Salva Kiir and his vice president as well. Heavy fighting between the two groups left more than 150 people dead since Thursday.
At least 23 people are dead after a deadly train crash in Italy. Two passenger trains collided in a remote area in the southeast of the country
on Tuesday morning. The Italian Prime Minister, Matteo Renzi, has called for a full investigation into the cause of the crash. Speaking a short time
ago, Mr. Renzi said he shares the pain and despair of the families of those victims.
(BEGIN VIDEO CLIP)
MATTEO RENZI, ITALIAN PRIME MINISTER (through translator): First of all, before being a politician, we are a father, a mother. And I think we have
to show responsibility. My thoughts go to the families of the victims. I am meeting with the president of the region and also the governor and mayor to
express our condolences. We are here to give a hug to the Puglia people and the government of the region and to let you know that we are together with
you. We are not going to leave you now. We are together with you in this pain and despair.
(END VIDEO CLIP)
ASHER: Some pretty solid news out there for investors, the Dow has closed at an all-time high after gaining 121 points on Tuesday, also good news for
the S&P 500 as well. It hit a record high for the second day in a row as well. Let's talk about this with our expert in chief, Paul La Monica who is
joining me live now from New York.
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Too kind, Zain.
ASHER: Despite the naysayers after that Brexit vote, a lot of people were running for the hills. Now, this is pure evidence that the bull market is
alive and well, Paul.
LA MONICA: It is amazing, Zain. I think what's going to happen, the big test now is going to be corporate earnings, which we're going to see in
earnest start this week with a lot of big banks reporting their results at the end of the week. Right now investors in the United States at least,
seem to be of the mindset that Brexit is not going to be a major problem for the U.S. economy. I think they were heartened by the fact that two
companies that have significant presence in the U.K., Walgreen's which owns Boots and Pepsi, they reported decent results last week and didn't warn of
Brexit-related problems.
ASHER: And so Paul, I know you get asked this a lot, but what will this mean for the Fed? Especially when it comes to raising interest rates.
Obviously we got that amazing, stellar June jobs report, now this record high as well.
LA MONICA: Yes, the jobs report I think was a sigh of relief for many investors. Because there were two things there. You had, one, a reversal
from that awful number in May which got revised even lower, so healthy jobs growth. But wage growth is still creeping up a little bit. It's not so
strong that it's giving the Fed reason to be worried about a time to raise interest rates anytime soon.
[16:40:22] So with a contentious presidential election just around the corner, I think the mindset right now is that the U.S. economy is on solid
if not spectacular footing, and the Fed isn't going to screw it up by raising rates anytime soon.
ASHER: If it ain't broke, you know what they say, don't fix it. Paul La Monica, live for us there, thank you so much.
LA MONICA: Thank you.
ASHER: Venezuela's government says it's seized a factory belonging to Kimberly-Clark. The consumer products giant which makes tissues and diapers
actually suspended production in the country this weekend and said it was impossible to do business amid Venezuela's crisis. President Nicholas
Maduro said, Kimberly-Clark violated laws by closing the plant.
(BEGIN VIDEO CLIP)
NICOLAS MADURO, VENEZUELAN PRESIDENT (through translator): We have carried out the necessary process and the Kimberly-Clark company is now in the
hands of the workers and we are going to invest all of the necessary resources.
(END VIDEO CLIP)
ASHER: Maduro actually also accused Citibank of imposing economic blockade on the country, saying it plans to close the account Venezuela uses for
international payments. Kimberly-Clark is just one of a host of companies pulling out of Venezuela right now. Those companies also include Procter &
Gamble, Bridgestone, and General Mills as well, which recently exited that market as well. Paula Newton is live for us in Caracas. Paula, you have all
these companies pulling out of Venezuela. That's hitting the country very hard. Then you have food shortages as well, Paula.
PAULA NEWTON, CNN ANCHOR: The situation is absolutely dire. And while we may report it as corporate news, this is anything but in this country. Any
time you hear about corporate adversity and political conflict, it means real pain on the streets of Venezuela. Take a look.
(BEGIN VIDEOTAPE)
NEWTON (voice-over): The cheering and the taunting belies their desperation. Until you see what they're facing down the road. These
Venezuelan families are ready to do combat. And it's primal. A fight for food. What about us, screams Yolanda, what about our children, what about
our grandchildren? Nothing?
NEWTON (on camera): The government is supposed to be distributing staples but they say they have not seen it. They say that's why they've taken
matters into their own hands and they're blocking the road. They're waiting to see what will come of this confrontation. As you can see, right now
they're showing no fear.
NEWTON (voice-over): Feelings are raw, but this scene far from rare now in Venezuela. The people in the suburb of Caracas tell us there's been no
flour, milk, pasta, rice, none of the basics in nearly a month. Hunger gives way to anger, gives way to daring. A rebuke to those who arrive with
guns and shields instead of flour and milk. "They approach us as if we're terrorists. Gentlemen, we're just hungry." But the hunger and rage of the
day turns to quiet desperation in the dead of night. Like millions here, Carmen Escola, gets up earlier and earlier to line up for food.
Sometimes, she said, we leave early and find nothing. We come back as we left. Carmen is just across the street from the presidential palace. But
food shortages stalk this neighborhood like all others. So Carmen grabs her purse, leaves her three children and husband behind in search of food on
her government-assigned shopping date. And she joins millions of others who walk the line, now sometimes for the entire night.
Tallas a bedroom community outside of Caracas and it's now taken on a whole new meaning. Hundreds of families, children in tow, sleeping rough the
whole night. In sidewalks and ditches, desperate to keep their place in line before the suppliers run out of food. What did you come here to buy,
we asked Christian Martinez? Whatever there is, she says.
The night vigil escapes no one. If you want to eat, join the line, la cola. Even then this may not be enough. Daybreak comes and disappoint. More and
more say even standing in these lines is futile. Leaving Venezuela at loose ends, unraveling more quickly by the day. Today the families get only
assurances. Riot police say they will look into the shortages. The rage is allowed to simmer. They eventually surrender the road. Venezuela's streets
still look and feel like a battleground for survival.
(END VIDEOTAPE)
[16:45:03] NEWTON: As if things could get any worse here, beyond all the company closures, there are now indications that the military will be
taking up distribution. That is how desperate things are here. That does not mean that there will be any more food, though, in those super markets,
Zain.
ASHER: Paula, absolutely heartbreaking, especially to think that those children, there are children there going without food. What about getting
food on the black market? How does that work?
NEWTON: The black market is thriving here. I think our viewers may have seen some opening to the border in Colombia, and people going over there.
That is another way that they get food into this country. The problem is, Zain, you would not believe some of the black market prices. They've
changed a lot just in the last few weeks I've been here. You can pay as much as $10 for a kilogram of sugar. That is how difficult it's become.
It's very difficult to find sugar anywhere in this country right now. And it's starting to worry people. Some of the frustration you saw in my report
is because they literally fear for what they will eat for their next meal. You go to their homes, there's still nothing there, Zain.
ASHER: Unbelievable. I have no idea how this is going to end up resolving itself. Paula Newton live for us there, thank you so much for your
reporting, appreciate that.
Going to have a quick break here on QUEST MEANS BUSINESS. Coming up, China is refusing to accept a court order saying it has no legal claim to
contested areas in the South China Sea. What the ruling means, after the break.
(COMMERCIAL BREAK)
ASHER: China is refusing to accept a court verdict, saying it has no legal basis to claim contested waters in the South China Sea. The ruling is
viewed as a decisive win for the Philippines. But it could heighten tensions in the region. I want to show you this map, because this map
actually shows the complicated, very complicated, I should say, set of claims in the area. China's claims are in the red. That extends way beyond
the mainland. Philippines claims is in the yellow. These disputed area is rich in resources for fishing, oil, and gas, and it's also a very crucial
trade route. That's why so many countries are claiming it. Jamie Metzl is a senior fellow at the Atlantic Council and former Executive Vice President
at the Asia Society. Jamie, thank you so much for being with us. How will China be bound by this ruling?
JAMIE METZL, SENIOR FELLOW, ATLANTIC COUNCIL: They're bound by international law, but as you know, Zain, that doesn't mean so much. So the
ruling is against them. They certainly have egg on their chin. It makes life more difficult. But they have also claimed these four what they're
calling islands, but what the international law calls rocks, in the South China Sea. They've built runways and essentially fortresses on them. It's
bad for China, but they're still holding territory that they didn't previously possess.
[16:50:02] ASHER: It's bad for China, but here's what I don't understand. If they continue to violate the sovereign rights of other countries, what
specific consequences will there be for them?
METZL: That's a general question about international law. Certainly it would be bad reputationally for them. Certainly it will harm them in the
eyes of other countries that have a greater respect for international law. But there isn't an enforcement mechanism, often, for international law.
Certainly for the holding of this tribunal. That's the crux of the problem. It's binding international law, but there's nobody available to enforce it.
It's certainly bad for China. It's a big loss for China. But now it will move from the realm of law to the realm of geopolitics.
ASHER: Rather than continue to fight this, do you think China might end up negotiating some kind of settlement, do you think, is that possible?
METZL: The question is what a settlement might look like. I think it's quite likely that they will negotiate a freeze. But it's in their interest
to negotiate a freeze, because they've been building so aggressively on these rocks. They now have four extended runways that are militarized. If
they have a freeze, they are going to freeze in place a tremendous benefit that they never had. That's one of the things in your map, it showed just
how outlandish China's claim is. They made this kind of crazy claim, then they started building these basically military installations on parts of
the open sea that they previously had no claim on. And now they will pull back, I'm sure, and negotiate a freeze, but those military installations
aren't going anywhere.
ASHER: I'm just curious, what sort of evidence about The Hague look at before reaching this conclusion or this ruling?
METZL: It's very technical. They sent people out, they looked at historical records. The technical issue is whether these reefs and rocks are above the
water or below the water at high tide. And if they're islands as China claims, then they would not only have a 12-mile sovereign zone around them
but a 200 nautical mile exclusive economic zone. And that's what the tribunal looked at, their experts looked at. That was completely and
categorically rejected. They looked at historical records. They looked at the islands, at the topography and they came to the conclusion that none of
these rocks and reefs were in fact islands as China has claimed. Meaning that China's claim is completely illegitimate in international law.
ASHER: All right, Jamie Metzl, live for us there, thank you very much, we appreciate that.
Rivals no more. Bernie Sanders finally throws his support behind Hillary Clinton for president. Details coming up.
(COMMERCIAL BREAK)
ASHER: It took far longer than anyone could have possibly imagined. Bernie Sanders has finally endorsed his former presidential rival, Hillary
Clinton.
(BEGIN VIDEO CLIP)
[16:55:07] BERNIE SANDERS, FORMER U.S. PRESIDENTIAL DEMOCRATIC CANDIDATE: She will be the Democratic nominee for president. And I intend to do
everything I can to make certain she will be the next president of the United States.
(END VIDEO CLIP)
ASHER: The endorsement comes after negotiations on the party's platform that saw both wins and losses for Sanders. Sanders waged his plan to make
public colleges free for families earning less than $125,000 also included as well. And he convinced Clinton to strengthen Wall Street reforms. But
Sanders failed to include opposition to the Trans-Pacific Partnership. He also could not get a ban on fracking, nor could I get a call for an end to
the Israeli occupation of the West Bank and the blockade of the Gaza strip. John Avlon, editor-in-chief of "The Daily Beast" and also CNN political
analyst joins us live from New York. John, thank you so much for
Being with us. How hard do you think this was for Bernie Sanders to do? He held out for so long but eventually had to give in.
JOHN AVLON, EDITOR-IN-CHIEF, THE DAILY BEAST: He did. But, you know, he actually got a lot out of holding out for this long. This has been a tough
fight. A tougher fight for the nomination than anyone could have predicted at the outset. But Bernie Sanders held out as a result of trying to make an
impact on the platform. As you just pointed out, he's made a lot of gains in terms of long time liberal goals that are now part of the democratic
party platform. This is not binding, we should say. This is aspirational. But it's important in terms of symbolism and in terms of the influence he's
had on the Democratic Party, moving it to the left on policy, beyond where Hillary Clinton might have gone on her own and certainly beyond what the
Clinton legacy has been, which was all about re-centering the party to help it win back the White House in 1992.
ASHER: All right, John Avlon, we have to leave it there, thank you so much. Appreciate you giving us your perspective there.
That does it for QUEST MEANS BUSINESS. Thank you at home so much for watching. I'm Zain Asher in Atlanta. You're watching CNN.
END
