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Quest Means Business
Donald Trump Goes on Offensive Against the Media; U.S. Secret Service Tells CNN It Spoke to Trump Camp; New Batch of Clinton Emails Released; Staff: World Bank Faces "Crisis of Leadership"; U.S. Stocks Fall After Early Rally; Man Attempting to Scale Trump Tower; Phelps Wins 20th and 21st Gold Medals; Duke of Westminster Dies of Sudden Illness; Tokyo's First Female Governor Gets to Work. Aired 4-5p ET
Aired August 10, 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 HOST: The market bell is ringing. The Battle of the Burger at Wall Street from Time Out at Wall Street. The
market is off just 38 points at the close. Had been up earlier in the session. All the gains gone and I have a feeling it's going to be a good
gavel. That's what you call a firm gavel. On Wednesday, it's the 10th of August.
Tonight, Donald Trump's campaign gets a word in the ear from the Secret Service over his comments about Hillary Clinton and gun control.
A crisis of leadership at the World Bank. The staff say it's time for a change.
And the noble billionaire, London bids farewell to the very wealthy Duke of Westminster. I'm Richard Quest in New York where of course I mean
business.
Good evening. The U.S. Secret Service has confirmed to CNN they have spoken to the Trump campaign about Mr. Trump's comments on possible
violence against Hillary Clinton. Donald Trump made the controversial statement and it escalated his war with the media. Mr. Trump says the
comment was made not to incite violence, rather to mobilize voters and is being misinterpreted by the media as a call to assassinate his presidential
rival.
(END VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL NOMINEE: Hillary wants to abolish, essentially abolish, the second amendment. By the way and If she
gets to pick -- if she gets to pick her judges, nothing you can do folks. Although the second amendment people, maybe there is. I don't know.
(END VIDEO CLIP)
QUEST: What did he mean when he said the second amendment people maybe they can, I don't know? The Clinton campaign immediately denounced the
comment. Saying it shows that Donald Trump does not have the temperament to be president. Mr. Trump says it's another example of the media
deliberately misrepresenting him. So he says the campaign's initial response was to issue a news release with the title "Statement on Dishonest
Media". This is the release, "Trump Campaign Statement on Dishonest Media." It says, "It's called the power of unification. Second Amendment
people have amazing spirit," according to their statement.
However, the way it's been interpreted elsewhere the "New York Daily News" which has been extremely critical of Trump since the start of the campaign,
instead took a different line. "This Isn't a Joke Anymore," and let's go in there closer to see what it says, "When Trump hinted gun rights
supporters shoot Hillary he went from offensive too reckless. He must end his campaign. If he doesn't the GOP needs to abandon him." But remember,
Mr. Trump maintains that this is the dishonest media that's involved in all of this.
Now the second amendment comment of course has to be seen in the great context of a variety of controversial statements over the past few weeks.
When the Republican Convention, remember when the Republican convention ended in July it was assumed that he would act more presidential. And
according to some it doesn't appear to have been the case. For example, if you look at the examples on July the 27th Mr. Trump encouraged Russia to
hack Hillary Clinton's emails. And said he looked forward to reading them. He went on to claim of course he was just being sarcastic.
A few days later he engaged in a much more serious war of words with the family of the U.S. army soldier hero killed in Iraq. It came after the
soldier's father made an impassioned speech against Mr. Donald Trump at the Democratic Convention. It was a nasty bruising battle and one in which Mr.
Trump is widely believed to have been on the losing side.
Then you come to Tuesday and you get this second amendment comment. So it's a real question some will say it can be interpreted as inciting
violence against Clinton. Mister Trump says it means nothing of the sort, and furthermore, he blames Brian Stelter amongst others. Not you
personally, sir, but you know where I'm going with this.
[16:05:00] BRIAN STELTER, CNN MONEY SENIOR MEDIA CORRESPONDENT: He blames you too.
QUEST: There's enough blame to go around. He says it is the dishonest media. OK. Dishonest media. Is he right?
STELTER: When I'm late for a meeting, I blame my watch, but it's really my own fault. The media is a convenient excuse in situations like this. That
doesn't mean there isn't bias on the part of the media, there is media bias. However, many of these cases you were describing is Donald Trump's
own fault. His own self-inflicted wounds. And he's using the media as a sort of shield.
QUEST: But hang on, hang on. I mean, you hear what he said, the second amendment people maybe they could. He has a legitimate case that he could
have just been saying that they are going to rise up and vote against her.
STELTER: I would argue he doesn't have a legitimate case because he was talking about what happened after Clinton was elected. He was talking
about after she's elected then there won't be anything you can do about it. Well, except maybe those second amendment people could.
Now I actually took it to mean more of an implied threat against judges. I interpreted it to more to mean specter of violence against judges rather
than Clinton. But in either case I think the press very wisely was very tough, was very skeptical yesterday when this happened and has continued to
be aggressive since. We have to be. Because we're in an unusual situation with a highly unusual presidential candidate. The norms of presidential
campaign coverage have to go out the window in the situation.
QUEST: I'm not being disrespectful when I say this, but you've been frothing at the mouth on this issue for the last couple of days. Why are
you so excited about it?
STELTER: I think the media critics are in a very similar position right now. This is not a normal campaign, not a normal candidate --
QUEST: But we know that, Brian.
STELTER: -- but to treat it like normal and to treat his words like normal and to treat his comments like normal when they're not that does a
disservice to the viewer. Does a disservice to the reader?
QUEST: So how then should one treat his words? When he says he means something completely different to the construct that the media is choosing
to put on them?
STELTER: The hard part is what do about it. I would say there's a couple of possible options. Number one real time fact checking in the banners on
the screen and with the words anchors like you and I are saying during and after his speeches. Real time fact checking helps, but it's not the only
answer. Very tough interviews of Trump whenever he's available for an interview is also part of the answer. He has to be held accountable for
these comments that he makes. As does Hillary Clinton, as do other candidates. But Trump is unique in terms of the ways he manipulates his
words and says things that are not factually accurate. It's not a criticism of him necessarily to say that. It's just a statement of reality
based on Politifact and the "Washington Post" and other fact checkers.
QUEST: Brian, we're glad that you're here.
STELTER: Thank you.
Thank you sir.
STELTER: Thanks.
QUEST: Remind us where we find your newsletter.
STELTER: CNNmoney.com/media. It's our nightly newsletter.
QUEST: Take a look at it. We've even got it right. CNNmoney.com/media.
CNNmoney.com/media Thank you. I'm going to go work on it right now.
QUEST: Say something nice about me. Thank you.
Donald Trump is renewing his attacks on Hillary Clinton and her emails. He says a newly released batch of emails shows that she does not have the
judgment of character to be president. CNN's Drew Griffin has been going through the emails. Drew, please enlighten me. I have been bewildered all
day by this latest email saga.
DREW GRIFFIN, CNN SENIOR INVESTIGATIVE CORRESPONDENT: You know, Richard, these are all part of freedom of information act request to get these
emails out into public. And what they show, and what they have shown in the past, is this very cozy wink and nod relationship between Hillary
Clinton's State Department, between Bill Clinton's foundation, between the people who run these various foundations and the donors who believe that
they can just send an email or get a favor done whenever they want. And this latest batch of emails seemed to indicate that is true.
There is one case where a fellow by the name of Gilbert Chagoury. You may know him, he and his brother are billionaires, developers over in Nigeria.
They are of Lebanese descent. Apparently Gilbert Chagoury, who has given $1 million to $5 million to the Clinton foundation wants to get some sort
of a meeting with the State Department's top person in Lebanon. So what is he do? He apparently goes to the guy who runs the Clinton Foundation, that
person sends an email to Hillary Clinton's top aids at the State Department. And lo and behold this meeting is set up in the emails.
QUEST: Now, Drew, a couple of points on this. Firstly, is there any evidence that the Secretary herself knew about this? Or are we talking
about lower officials who may be working in her name but she's much higher up the tree?
GRIFFIN: Well, there's two answers. The first answer is no, with an asterisk. Because these are not low level officials. We're talking about
Cheryl Mills and Houma Aberdeen. Two extremely close aids to Secretary of State Hillary Clinton. And in the example I gave you, it is true, Hillary
Clinton is not on the emails.
[16:10:00] But in another example, where she's very, very chummy with the top Morgan Stanley person from Asia. There are emails directly back and
forth between the Morgan Stanley executive and Hillary Rodham Clinton.
QUEST: Now I'm going to ask you to take off your combined media naive glasses and basically recognize it doesn't matter whether it's Republicans
in power, the Conservatives in the U.K., the right wing or left wing in any country, this is the way politics and business runs in any country in any
democracy. We need to grow up.
GRIFFIN: Well, we either need to grow up or perhaps some people think we need to ask for change or something better. You're right, Richard, this is
the kind of wink and nod stuff that goes on. Cocktail parties, they all attend the same parties. They go on the same vacations. They know each
other. They appoint each other's children to various positions. This has been going on for a long, long time. The situation here though is a little
different because we have former president, Bill Clinton who runs this foundation, which collects tens and tens of millions if not hundreds of
millions in donations, many from foreign countries, that was going on at the same time that his wife was the Secretary of State. It's a unique
situation.
QUEST: Drew, thank you very much, sir. Good to see you. Putting us right as always.
David Gergen is with us from Boston. Now David, you're exactly the man that we need to talk to. We dueling scandals, whether it's the second
amendment scandal or this latest email scandal. Which scandal to you is more scandalous.
DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Easily, the Donald Trump scandal. And I think it has far bigger implications, bigger repercussions
and that is I think the Trump campaign is now in crisis and Hillary Clinton is not. Hillary Clinton's story with damaging, but has been eclipsed by
far by the Trump story. Now, we do have dueling tabloids in New York as I'm sure you're aware, with the "New York Post" going Hillary this morning
on its cover, while the "New York Daily News" is going after Trump and calling for him to resign from the ticket.
QUEST: How damaging is this Trump allegation of what he said? Let's give it the best construct we possibly can that he was misspeaking and he just
simply forgot to add in the line they should take to their ballots in November, the real Trump hard line supporters won't care so how damaging is
it overall?
GERGEN: Well, I'm not sure it's true that they won't care. But it's very damaging in terms of reaching out beyond his base, which he has to do.
This is a candidate that's ten points back in national polls. And he's back significantly in key states. So he has to expand his vote. It's very
difficult do that when you're being slaughtered in the press.
I want to say one other thing, Richard, it's true that the media has been struggling with this and how to cover Trump and there is bias in the media.
But on this particular issue of what he said and how it should be interpreted, it's very important what CNN has been reporting here recently.
And that is it has learned that the United States Secret Service has also been objecting more than once talked to the Trump campaign to warn them
about this kind of rhetoric. Now, they're an unbiased source. They're trying to protect the president of the United States and other major
figures in government. To have them speak out, it's never happened before. It's unprecedented. This comes a day after he had a letter from 50
National Security chieftains in his party saying he was reckless. And the next day he goes out and proves he had a point.
QUEST: The point here is not that he is per se threatening the Secretary, but as I think it was Senator Chris Murphy points out, it's an invitation
almost to the unhinged and unstable to -- it's a nod and a wink, isn't it?
GERGEN: That's the problem. It doesn't come in a context where it's easy to give Donald Trump the benefit of the doubt about this violence point.
Because the rhetoric of violence has pervaded his campaign. He's been talking about punching people in the face several times and he said his
supporters -- they would stand by him if he went out on Fifth Avenue and shot somebody. And very importantly started calling her crooked Hillary.
He's been accusing her of being a criminal. And in his New Hampshire co- chair said she ought to be shot and she's still standing by the co-chair.
QUEST: You forgot, David, he called her the devil.
[16:15:00] GERGEN: He called her the devil. That's extremely important. And he also in his rallies they've been yelling, lock her up, lock her up.
And people in this rally yesterday before he spoke those words about second amendment people, they were yelling lock her up and there were threats
about her life at the rally coming from some of the crazies in the rally. You have a situation here which is combustible if he throws a match on it.
And I think that's what has struck people as being exceedingly reckless and is really raising questions about whether he's going to survive on the
ticket.
QUEST: How do they get rid of -- OK, final question because this is something that I read in the paper this morning. How do they get rid of
him if they were so minded bearing in mind there's no mechanism for getting rid of him?
GERGEN: There is no formal mechanism. We've never been here before. At this point polls of Republicans show there are only about 20 percent who
think he ought to leave the ticket. There are a great number who are uncertain. But that number has to grow. I don't think there's any formal
mechanism. He may himself decide to walk if a lot of people jump ship on him. If he can't get the money that's coming in. He may decide rather
than having an embarrassing defeat in November and possibly a humiliation in November. It would be better -- he would preserve his brand, his
commercial brand if he walked out earlier.
QUEST: David, good to see you sir. Thank you.
GERGEN: Thank you, Richard.
QUEST: The World Bank is supposed to promote good governance and transparency around the globe. The staff say the bank is failing to live
up to those principals within its own walls and they're blaming the president. In a moment.
(COMMERCIAL BREAK)
QUEST: The World Bank has called itself a pillar of financial order since was set up after the Bretton Woods conferences in the 1940s. It lends
billions of dollars each year and the aim is to reduce global poverty. Now the staff says the bank is suffering, in their words, a crisis of
leadership. They're calling for the president, Jim Yong Kim, bid for a second term. Even though the selection process has not officially begun,
they're calling for him to be rejected.
These are the past four presidents over the past seven decades. And the United States has picked them all. Some have had more successful terms
than others arguably. Wolfensohn was one of the most successful. Wolfowitz left in somewhat of a cloud. Robert Zoellick, of course, was the
economists during the height of the crisis. And now President, Jim Yong Kim, who's not an economist by trade. He's actually a health care expert
and was a former dean of a leading college. The staff association warns that it must change just having U.S. presidents.
[16:20:00] In their letter to the executive directors on presidential succession, it says, "We preach principals of good governance,
transparency, diversity, international competition, and merit based selection. Unfortunately, none of these principals have applied to the
appointment of past World Bank Group Presidents."
Paul Cadario, says, a look at Mr. Kim's record would disqualify him from a second term. He worked at the bank for 35 years as a senior manager. And
now a senior fellow at the University of Toronto Munk School of Global Affairs and joins me now. Sir, good to see you. As I read the letter
there are two complaints here. The first is the automatic right of a U.S. national citizen to have the job, the U.S. to have the job, and the second
is that the current incumbent isn't up to it. That's basically the gist of it isn't it.
PAUL CADARIO, DISTINGUISHED FELLOW, UNIVERSITY OF TORONTO: I think so, Richard. The staff association has raised an important question about the
process. Whether the current executive directors are going to follow the decision taken now five years ago, to have an open transparent, merit based
process or whether they're going to settle for the reappointment of Dr. Kim. Who by many measures would be considered a failure in four of the
first five years of his first term.
QUEST: Why do you say a failure? Because he came in having to restructure the bank. He faced numerous health crisis. Not least of which the Ebola,
in which he widely led the world response.
CADARIO: I think you have to separate those two points, Richard. Certainly the World Bank and any organization is in need of reform from
time to time. And I, as a long term staff member, would say, yes, it was necessary to have a look at the how the bang did business. In fact, three
years ago I was one of the first people to say there is no reason why Dr. Kim's reorganization plan has to fail. And really took on the critics of
what he'd done rather after millions of dollars of consulting work and really in the dead of summer.
The question of the bank's focus on health under Dr. Kim's term I think is a separate one. And quite different from whether that is an example of
what the bank should be doing or whether in fact Dr. Kim has presided over four years of basically a sloppy and sprawling strategy which has been
poorly implemented.
QUEST: Now, you know as well as I do that the U.S. is not going to open up the selection process next year because as long as they stick with Dr. Kim
then the question of a non-American doesn't really come into play for another five years.
CADARIO: Well, I think it would be inappropriate for us to comment on what the American administration's thinking is in this apparent stealthy effort
to launch Dr. Kim's reappointment in August while everyone's on vacation. Clearly there's a difference between Dr. Kim and the merit based selection
process that the board committed to and which the United States committed to in April of 2011. It calls for a process open merit based and
transparent. Whether appointing Dr. Kim just reappointing him without a competitive process fits with that I don't agree.
I think the issue is that the world and the World Bank deserve the best person on offer and Dr. Kim's record and his personal performance have to
be compared against other choices, women and men of all nationalities. If I were the U.S. administration I would put my political capital in coming
up with a process that came up with the best candidate. That might well be an American and I'm pretty sure that in a process that led to a short list
an American would certainly be on the list and would be a very strong contender.
QUEST: Good to see you, sir. Thank you.
CADARIO: Thank you for having me.
QUEST: At an early rally in U.S. stocks turned negative, the Dow Jones the day up 37 points. Paul La Monica is at the New York Stock Exchange. What
went wrong, Paul?
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Well, we weren't down all that much and we just had record highs for the S&P 500 and NASDAQ. I
wouldn't say something went wrong, I would say it's August. It's been quiet here.
QUEST: Quiet and in quiet markets you get disproportionate moves. I mean, your right, the graph looks far worse than the numbers tell us don't they.
LA MONICA: Definitely. We still are very close to the all-time highs, but there are starting to be some concerns about the health of several key
sectors. Energy, one you follow very closely, Richard. We had the U.S. showing a surprise increase in their recent oil production numbers.
[16:25:00] That's spooking some fears again about the supply glut and you had oil prices falling. Worries also been consumer spending, with Michael
Kors, not great numbers there.
QUEST: We've got is this extra emergency or whatever you want to call it OPEC meeting that's to come. Now I'm guessing when you then factor in the
oil numbers and the supply glut and oil retrenchment that people are starting to worry post summer that there's going to be a glut of oil and
another fall off in oil prices, big one.
LA MONICA: Definitely. I think that's certainly the case because I think there's a lot of skepticism about whether or not the Saudi led contingent
of OPEC will ever finally agree to production cut. We have that emergency meeting coming next month. We've had these meetings before, and as you
well know, they've come and gone with OPEC continuing to pump like there's no tomorrow.
QUEST: Now European stocks -- thank you, Paul.
European stocks ended their winning five-day streak on Wednesday. Most of the major indices finished the day lower. London did eke out a small gain.
The shares of energy companies fell as oil prices soared. The Bank of England says it stimulus program is back on track after the bond bank
program hit a snag on Tuesday, the second day of operation. The bank couldn't find enough investors willing to sell. Even after it offered
above market prices as part of the effort to boost the British economy following the post-Brexit deal.
Yields on the 10 year fell to time low on Wednesday. They actually went negative at one particular point. Richard Clarida is with me. Now look,
Richard, you're the Global Strategic Advisor at PIMCO. Always when a central bank buys bonds, or sells them. But he when he's doing bond buying
process, it doesn't want to find al lack of sellers.
RICHARD CLARIDA, GLOBAL STRATEGIC ADVISOR, PIMCO Yes, that's quite unusual. I guess with their finding out is that there is a real scarcity there. A
lot of insurance companies and other investors don't want to give up that paper. So you're in a situation now where interest rates in the U.K. are
back where they were in Japan a year ago. As you said, we briefly got negative yields today. This program has lowered interest rates. It's
weakened the currency and that's what they wanted.
QUEST: Right, but they didn't want the embarrassment of a failed sale.
CLARIDA: Right.
QUEST: As I understand it there may be some technical reasons for this particular sale even though they haven't telegraphed it properly and that
the pension funds weren't ready to partake. And indeed, Wednesday's was 4.7 percent covered.
CLARIDA: That's right.
QUEST: 4.7 times covered.
CLARIDA: Exactly.
QUEST: Is it your feeling that we could see future BOE auctions fail.
CLARIDA: It could happen. I think they want to avoid that and they'll have to tweak and refine their process. There is a high enough price they
can pay at which they won't fail. My sense is that they're going to have to have better communication with the markets and they'll have to be more
flexible. Because they want this to work.
QUEST: Where you surprised because the BOE has already done 375-billion- pound sterling of QE in. So they should have known what they're doing and they're doing 60 billion this time.
CLARIDA: That's right. You're well informed. I was surprised. I didn't see this happen. But again I think in the big scheme of things this is not
going to derail the program. They'll get it figured out.
QUEST: OK, now on the program itself, is the program going to work? It's working because of a hiccup at the moment. But you've already sold 375
billion, what does another 60 do?
CLARIDA: I think what Mr. Carney wanted to do, is he wanted to beat expectations and he did. So they cut rates as what was expected. But as
you mentioned, the QE program was bigger. They introduced a corporate bond buying program and they resurrected an old program which is a funding for
lending scheme.
QUEST: They're not really complicated. That funding for lending scheme, I tried to read up about it over the weekend.
CLARIDA: The flow chart Is Sort of a Rube Goldberg, I agree. But it sounds good and that's what Carney wanted to do. He wanted to move the
needle and it worked at least for the initial reaction.
QUEST: We have a situation now where the U.S. is still looking to tighten maybe once more before the end of the year.
CLARIDA: Right.
QUEST: The U.K. most people suggest they'll be further loosening or easing maybe early next year. The ECB we're not sure what happens.
CLARIDA: They'll keep on keeping on as long as Mario is there.
QUEST: I mean these buying bonds at a rate. How difficult is this current environment globally?
CLARIDA: Well, you know, I've been on your show before. We're so deep into uncharted waters I've thrown out the compass, but the fact of the
matter is that central banks, Draghi, Kuroda in particular, and now Carney are using the whole playbook to try to stim deflation and revive the
economy. I think the Bank of England has a decent shot. I think the more of the challenge that is really faced by Japan to some extent Europe. I
think in the case of the Fed we're at full employment, inflation is around two, that's a different ball game.
QUEST: Richard, good to see you sir.
CLARIDA: As always, thank you.
QUEST: Thank you.
A rivalry in Rio heats up. The U.S. and Russia are back in the pool and they're battling it out for gold.
[16:30:00] We're going to be at the Olympic Games and we'll hear just exactly the allegations, the nastiness, the whole sorry business. After
the break in one moment, QUEST MEANS BUSINESS, good evening.
(COMMERCIAL BREAK)
QUEST: Hello. I'm Richard Quest. More QUEST MEANS BUSINESS in just a moment. Where Tokyo's first female governor tells us how she broke what
she's calling the steel ceiling. And tributes for one of Britain's wealthiest men the Duke of Westminster who died overnight. You're watching
CNN and on this network, always, the news comes first.
At least 11 newborn baby have been killed in a blaze that ripped through the maternity ward in a hospital in Baghdad. As security sources says an
electrical problem with one of the air conditioning units sparked the fire. This was an incredible furry amongst many Iraqis who are already tired of
what they see as government shortcomings and broken infrastructure.
At least eight people have been killed and dozens more injured after two bombs exploded in southern Turkey. One explosion targeted a police bus
near the Turkish border with Syria. A car bomb also exploded on a bridge in a nearby city. Turkish officials say Kurdish militants are believed to
be responsible.
Donald Trump's comment that a 2nd amendment people could take action against Hillary Clinton has spurred the Secret Service into action. The
agency confirms to CNN it's had more than one conversation with the Trump campaign about it. The campaign told the Secret Service Trump did not
intend to incite violence against his presidential rival.
The Philippine's president is under fire after insulting the U.S. ambassador to his country. Rodrigo Duterte said the ambassador was a
homosexual and then used profanity to describe him. And he called U.S. Secretary of State, John Kerry. Crazy. The U.S. summoned his envoy in
Washington to complain.
Ukraine's president says claims they Kiev plan to launch an attack in Crimea are in their words, insane. Russian officials said they foiled a
plot by Ukrainian back militants to attack infrastructure targets in the region. The Ukraine deny the reports. President Petro Poroshenko says the
claims are an excuse to make more military threats against Ukraine.
A U.S. Justice Department report finding police in Baltimore engage in patterns of excessive force and bias against minorities. The city asked
for the investigation following last year's death of a man in custody. The police departments agreed to a series of reforms to fix the problems.
[16:35:00] (BEGIN VIDEO CLIP)
KEVIN DAVIS, BALTIMORE POLICE COMMISSIONER: We know that our citizens are outraged at some of the details included in this report. And they should
be. Citizens can't be expected to respect an agency if the trust of that agency is breached.
(END VIDEO CLIP)
QUEST: So all the extraordinary pictures I must bring to your attention that's happening at the moment. You can see there, live pictures of a man
climbing the side of Trump Tower, which is midtown Manhattan just on Fifth Avenue. He appears to be using suction cups and climbing equipment. Look
at this. This is one of those fascinating can't take your eyes off it things. Since it's Fifth Avenue, it's going to be enormous traffic delays
in the area. There are the suction cups. I really am not sure what we're more concerned -- it's sort of dangerously seems to be untethered to
anything other than himself and those suction cups and makes his way up.
As you can imagine there are large numbers of police and fire brigade that are monitoring this as the man -- we have no idea why. We have no idea the
cause, political or simply tourist wanting to make a name for himself. But as you can imagine, bearing in mind it's Trump Tower, and there's the
current feverish presidential election season. This is going to garner huge amounts of attention in the hours ahead. So we will follow that. If
there are developments, we'll bring you those pictures as we get them.
The biggest rivalry of the Olympics is resuming in the swimming pool. The U.S. has the edge so far against Russia. It's 10 versus three in the gold.
Americans have won several of them including Michael Phelps record breaking 20th and 21st title. Now our gearing for a show down between two star
women swimmers from two countries. Don Riddell is with me in Rio and give us a bit of the background to the animosity and the rivalry that we're
seeing here.
DON RIDDELL, CNN WORLD SPORT: Well, Richard, the background is absolutely fascinating. It began on the eve of the games really with the
controversial decision of the International Olympic Committee to allow so many of these Russians to compete. And this was in the wake of a Russian
states sponsored doping program. There were investigations. Lord McLaren did a report into all this. The World Anti-Doping Agency recommended there
be a blanket ban of all Russians and they be thrown out. But the IOC didn't go with that. They allowed 371 one of them to compete and now we're
seeing this play out in front of our very eyes. On a world stage we're seeing athletes booed, Efimova in particular. She seems to have been
singled out as the real villain of the peace. And you had on the other side America's Lilly King, a 19-year-old making a name for herself. Not
just by winning a gold medal, but by really taking a stand and really making her feelings very, very clear about how she feels about competing
against Efimova and drug cheats in general. And she is doubling down and doubling down. She's become a real celebrity around these games.
She really is standing for something really that the authorities don't seem to want to do. She's calling the IOC out. She's basically brought this
right back into the spotlight, because athletes for many years have been competing against dopes but they don't really talk about it. They haven't
made a fuss about it, but now they seem to be. And Lilly King today basically saying, "My parents raised me to say what I wanted to say even if
that's not what other people want to hear." She said, "I'm sticking to my guns." They're going tonight in the semifinals of the 200 m breaststroke.
QUEST: When these competitions happen and it actually gets to the races themselves, how much bad blood is there in the water, so to speak, and what
is the atmosphere like in the swimming auditorium?
RIDDELL: Well, what Efimova has been experiencing is that as soon as she comes out into the arena she is greeted by a chorus of boos. So there is
no doubt how people feel about her. Obviously, she's trying to block all that out and focus and get on with her race. But it's interesting watching
what happens at the end and in particular the 100-meter final at the end of it. King beat her by quite a decent distance into second place.
[16:40:04] And after that King splashed twice in Efimova's lane. She completely ignored her. It was very frosty on the medal podium where
Efimova was booed again. She was in tears. She's finding it very, very difficult and some people do have a little bit of sympathy for her given
that she comes from a Russian system where there was systemic doping going on. But the athletes it would seem, and King in particular, has absolutely
no sympathy for her whatsoever.
QUEST: And finally, the green water of the diving pool. This has to be a first, Don Riddell. What caused the water to pretty much overnight turn
green?
RIDDELL: Yes, well, it wouldn't be a first for my garden pond. That happens all the time. But I agree with you. I think it's the first for
the Olympics. And it's not just the diving pool. It's has actually spread to the water polo waters, which is literally just on the other side of the
arena.
What caused it? It depends who you asked. Rio 2016 first said it was algae. Then they said it was a sudden change of alkalinity. They blamed
the heat and lack of wind. But then FINA, the governing body for world swimming came along and said, "No, it's much simpler than that. You've
just ran out of chemicals." The good news is there doesn't seem to be any kind of risk to the athlete's health. In fact, one of the divers Tonia
Couch, from Great Britain, said it was actually a help because it helped them see where the waterline was when they were diving into it. And
Richard, I suppose if you look on the bright side, given all the talk about the polluted waters around the coast line of Rio, maybe this isn't that big
a deal, it's just the wrong color.
QUEST: It's the wrong color. I seem to remember once the wrong type of snow in Britain with the railways. Thank you, sir. Don Riddell, who is in
Rio.
He was one of Britain's wealthiest landowners and he's died suddenly in his mid-60s. We're going to talk about the Duke of Westminster and the fortune
his that his sons now inherent. All based on inheritance and good old fashion land.
(COMMERCIAL BREAK)
QUEST: Britain's third richest man has died. It was sudden illness. He's the 64-year-old, Gerald Cavendish Grosvenor, known as the Duke of
Westminster. He ran the Grosvenor Group, which owns vast portfolio of some of the most luxurious properties in London and around the world. Now here
you can see some of those properties that are owned in Mayfair and Belgravia. If you look at the map, you're talking about some of the most
expensive areas in London. Belgravia, there's Buckingham Palace up towards Mayfair and out towards Belgravia. It even goes even further across.
[16:45:00] Forbes estimates the Dukes fortune at around $11 billion. Remember, he just didn't own the buildings, he owns the land upon which
they stand. Where there will be leasehold upon that. It makes him the 114th richest person in the world. Being the inheritance system, his 25-
year-old son will inherit the fortune. It makes him the youngest billionaire in Britain. Our royal commentator, Richard Fitzwilliams joins
us now from London. The duke -- I mean, this is all inherited wealth going back to the 17th century, largely gained by marriage and royal fee. But
how far has the Grosvenor Group increased its wealth or is it just living on past fortunes?
RICHARD FITZWILLIAMS, ROYAL COMMENTATOR: It seems to have done extremely well. From what we gather you mentioned the "Forbes" and Sunday "Times"
are also, I think their saying he's the third richest man in Britain. It dates back from the 17th century the vast acquisitions, you are actually
talking, it's almost unbelievable, it's Mayfair, it's Belgravia, it's 500 acres in London and of course, Eaton hall in Cheshire is the family seat.
According to fortune, the fortune has spread over five continents. So in fact were looking at something absolutely phenomenal here. The Dukedom
itself only dates back to Queen Victoria. That's 1874.
QUEST: We have the untimely death. He was a man who played his role in public life, and were seen the pictures, but he was also, the Duke, a
troubled man.
FITZWILLIAMS: Yes, he was. What was rather exceptional about him and I think pretty remarkable was that he suffered from depression and he talked
about it. Because this was very unusual really. There's no question that he saw himself as someone who had an important role to play in public life
in the sense he was able to communicate because he was who he was. And also of course, in his military career, which lasted some 40 years, and
where he was major general of the Queen's Own Yeomanry and held very senior posts. But interesting also that he went to Harrow School, which is where
the sons of the aristocracy tend to go. He absolutely hated it and he sent his four children to state schools.
QUEST: In that regard, what do we know about the new duke?
FITZWILLIAMS: We know that he like his father is close to the Royal Family. For example, he's a god parent to Prince George. Interesting to
note that the late Duke was an executor of the Princess of Wales will. So there is that closeness to the Queen. And he's also a student at New
Castle University. He had a 21st bash which is estimated to cost, this is an estimate, 5 million pounds. How about that?
QUEST: Right. Finally, Richard, we think of the aristocracy and we often think of faded gentry. We think of distressed times and Downton Abbey
like, selling off the family silver. But in the case of the Duke of Westminster that is not the case.
FITZWILLIAMS: In the case of the Duke of Westminster you can quite literally say it's most emphatically nothing to do with selling off
anything, it has to do with acquiring, which is what his ancestors did with such success, and why the name resonates with the British public, but you
asked about the details, whether it was his health or the military, they wouldn't know. But certainly, the name Westminster that means a resounding
link with a vast fortune.
QUEST: A vast fortune. Thank you, Richard, thank you, sir. Good to see you.
QUEST MEANS BUSINESS, we're going to be back in a moment after you've had a chance to think about "MAKE, CREATE AND INNOVATE."
(COMMERCIAL BREAK)
[16:51:05] All right, live pictures. We're back at Trump Tower on Fifth Avenue where the mystery climber is climbing using suction cups up the side
of Trump Tower. Now you can't see on this particular picture, but there are policemen now outside the window above. And police on a cherry picker
to the side. What we think the gentleman climber is doing is about to try to go to the left to circumnavigate. There you are. Oh my goodness
gracious. You get an idea of how far this man is up Trump Tower at the moment.
We've no idea the reasons why or what on earth is going on and whether it's political, whether it's a tourist, a climber deciding to make a statement.
But he's made good solid progress so far and I have no doubt the police are trying to work out which is the best way to attack this potentially very
dangerous or difficult situation. While he carries on we will move on.
Tokyo's first female governor says she's had to smash through a steel sealing to get where she is now. That's how Yuriko Koike describes the
rigid Japanese society where it's incredibly hard for women to have successful careers. She needs to get the preparations for the 2020
Olympics back on track. It's a CNN exclusive where Koike spoke to our correspondent Will Ripley.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN CORRESPONDENT (voice-over): As billions around the world watch Rio 2016, for Yuiko Koike, the clock is already ticking towards Tokyo
2020. The Japanese capital's first female governor will attend the closing ceremony in Rio.
RIPLEY (on camera): Training to hold that flag.
YURIKO KOIKE, TOKYO GOVERNOR: I'm training my muscles.
RIPLEY (voice-over): Koike hopes to avoid the Olympic-size problems that plagued Brazil in the run-up to the games.
UNIDENTIFIED MALE: Tokyo.
RIPLEY: Tokyo has had its own trouble since winning the 2020 bid. A scrapped Olympic stadium design, logo plagiarism allegations, construction
delays, not to mention massive overspending.
KOIKE: The cost of running the 2020 Tokyo Olympics and Paralympics is so enormous.
RIPLEY: Cutting those costs is one of her main goals. Money scandals forced the last two governors to resign, making Koike the third in three
years. Her resume doesn't read like a typical Japanese politician. The Arabic speaking former news anchor has been a member of parliament,
minister of the environment, and Japan's first female defense minister. Koike is used to shattering glass ceilings.
KOIKE: As a matter of fact, in Japan it's not a glass ceiling, it's steel ceilings.
RIPLEY (on camera): Steel ceiling. And why is the steel ceiling?
KOIKE: It's more ridged. It's more chauvinistic.
RIPLEY (voice-over): Her outspoken views have made Koike unpopular with the establishment, but popular with voters. She broke away from the ruling
Conservative Party, winning 3 million votes as an independent, more than 1 million ahead of the second place candidate. There's talk Koike could be
Japan's first female prime minister, which leads to inevitable comparisons to another candidate in the midst of a grueling U.S. presidential race.
KOIKE: It's unthinkable for us. I mean, it's too long sometime, but she's doing a very good campaign.
RIPLEY (on camera): Are you rooting for Clinton or Trump?
KOIKE: It's hard to tell. It depends on the people, of the U.S. decides.
RIPLEY (voice-over): Koike's focus is being the first female governor of a mega urban area.
KOIKE: Tokyo is fantastic, a magnificent city.
[16:55:00] RIPLEY: Her mission, make sure scandals, delays, and overspending don't cast a shadow when the Olympic spotlight shines on Japan
in four short years.
Will Ripley, CNN, Tokyo.
(END VIDEOTAPE)
QUEST: A reminder our newsletter is about to be published. It's CNNmoney.com/quest where you can subscribe to the letter. As the markets
close and nobody's trading and then of course, Asia is about to open, you'll join us in the newsletter, the New York market down 37.
We must go back immediately to Trump Tower to see how our intrepid climber is doing. Remember, it looks like he's trying to circumnavigate around the
side of the building to avoid the police who are now waiting for him a couple of rows -- a couple of windows further up. He's putting his hat on.
Let's see how long this has to play out in the hours ahead.
We'll have a Profitable Moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment, frankly, I was going to talk about something else but there's something much more interesting going on at the
moment. Let's go back to Trump Tower where the man is starting to climb. Remember what I told you, he is climbing Trump Tower for a reason of which
we have no idea. But the police are waiting above him. There you see him. So what is he doing? Instead of climbing up towards the police as they may
well have anticipated, he's decided to go to the left, round to the side and avoid the police.
My guess is the police are making it quite clear that they are there to ensure his safety and they've no intention of moving against him, but the
man clearly knows what he's doing, this climber. He's a long way up the tower. He's using those suction cups and frankly I can only imagine the
traffic grid lock in Midtown Manhattan Around Fifth Avenue.
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've got
some climbing of my own to do here.
END
