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Quest Means Business
New CNN/ORC Poll: Clinton Leads Trump by 5 Points; Millennials in Florida Weigh in On Elections; Early Voting Begins in Florida; Media Mega Merger: AT&T to Take Over Time Warner; Trump, Clinton, Sanders Question Time Warner Deal; T-Mobil Cep: Deal Shows AT&T is Bleeding; AT&T-Time Warner Deal to Face Regulatory Right; Malware Targets Internet-Connected Devices; Young Floridians Make Their Voices Heard. Aired 4-5p ET
Aired October 24, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] RICHARD QUEST, CNN ANCHOR: We've lots of bells today on QUEST MEANS BUSINESS. We start of course with the closing bell. Then we have
QNB bell and on today's program ma bell. A cacophony of sounds this Monday. We starting new week live from Florida. I'm Richard Quest and I
mean business.
Breaking news on CNN as we start at the top of the hour. We have details of the very latest CNN/ORC poll. It puts Hillary Clinton ahead of Trump on
a nationwide basis by five points. If you break down those numbers a little bit more, among likely voters, Hillary Clinton tops Donald Trump 49
percent to 44 percent. Both candidates have gained a couple of points and they appear to have consolidated their core supporters.
In the case of Hillary Clinton, it is young and it is the nonwhite, and in Donald Trump's case whites that do not hold degrees. We will be talking to
those who are hoping to get some degrees during the course of this program.
Now Donald Trump is already in Florida. Hillary Clinton is in the swing state of New Hampshire. Here in Florida this is the most extraordinary
thing. Because the official election day is some two weeks away, but more than five million ballots have been cast so far across the United States.
Early voting is already under way in dozens of states and it started here in Florida too.
The importance of and the reason why this week, QUEST MEANS BUSINESS, we are all week, we are in Florida from north to south. Because this is the
state Donald Trump must win. He must win the sunshine state with his 29 electoral college votes if he hopes to capture the White House. Now the
Trump campaign rallies are in St. Augustine and in Tampa. So, that's on the Trump side.
On the Clinton side, her vice-presidential candidate, Tim Kaine is early voting events in Miami and West Palm Beach. So, where are we? The north
of the state in Tallahassee, known as the panhandle, where I can honestly tell you it may be very late in October but it's stonkingly hot here, and
it's beautiful weather. Skip Foster is the president, the publisher of the "Tallahassee Democrat", which is Tallahassee's daily newspaper. Just to
confirm not a party political name, the Tallahassee Democrat.
SKIP FOSTER, PRESIDENT, TALLAHASSEE DEMOCRAT: Democrat is for democracy and did you just say stonkingly?
QUEST: Stonkingly. It's a local expression.
Foster: Very good to see you.
QUEST: You're most welcome. Jeff Burlew is its chief political reporter. Now we need to actually put some of this into perspective. Start with you
Jeff. Are you surprised this poll has Mrs. Clinton five points ahead? Would you expect to see that sort of lead in Florida?
SKIP FOSTER, PRESIDENT, TALLAHASSEE DEMOCRAT: She has been up by a few points in recent weeks, and given the troubles that the Trump campaign
faced, her performance in the debates. I'm not at all surprised to hear that she's up a little bit here. I would assume that's circling in on the
margin of error. Most people tell you it's very close in Florida.
QUEST: And yet as I have been walking around the state, and I'm in this part of the state predominantly degree arguably more conservative than the
South, I'm meeting more people saying they are for Hillary Clinton.
FOSTER: Well, interesting area, the panhandle is very red, but Tallahassee is a blue donut hole. The state capital, a lot of state workers. So were
very interested, you know Trump will be here at 6:00 in town today and we're all kind of confused by why he is coming to a little blue knot in an
otherwise red panhandle area.
QUEST: So what you're telling me is if I go 20 to 30 miles out of town, or 50 miles further out, I will see a very different picture? Which is why
we're doing that tomorrow, by the way.
BURLEW: That's right, and Democrats outnumber Republicans in Tallahassee two. So, this is very much a Democratic town. There are no Republicans
and local county wide offices. Of course, you have the Governor here who's Republican.
QUEST: What's holding the Trump vote together in this part -- I don't mean Tallahassee -- but in northern Florida? What are they wanting? What do
they like about his message?
BURLEW: I think you see some of the people consistently drawn to the Republican ticket. They don't like taxes. The trade stuff that Donald
Trump has been talking about, the trade deals. They don't like that.
[16:05:03] They tend to agree that the media is on the side of the left and that they're not hearing the whole truth about sort of this audio that
surfaced and all that kind of stuff.
QUEST: And at what point will your paper -- if you haven't already, forgive me -- at what point will you come out with your endorsement?
FOSTER: We chose to not endorse really before Trump was even on the radar, or certainly that it was a given, he was the nominee. We don't have to
make that decision this year. It is probably lucky for him that we're not.
QUEST: Finally, I think I know the answer to this. But your readers must be telling you in no uncertain terms their view on this election.
FOSTER: Yes, it's the acrimony that you see at the national level has percolated down not only to the local level on the presidential race, but
we would submit even to local politics. There just is an angrier, nastier tone all the way down to the state and local level and this is too bad.
QUEST: Thank you for joining us, very kind of you. You have your work cut out for you as you continue to watch this. We're grateful you came to join
us. Thank you.
We've just been hearing the details of the nature of politics in Florida. Particularly, of course, the idea that were in this blue donut in the
middle. Florida is home to a rising force in the state's politics, the millennials. I spoke to students at FAMU which is Florida A&M or
Agricultural & Mechanical University. There was no better moment to do it. An American institution when it comes to college, tailgating with the
rattlers college football team.
(BEGIN VIDEOTAPE)
QUEST (voice-over): It's homecoming weekend at Florida A&M University. And watching the college football team, the Rattlers is a great way to
bring alumni and current students together at this predominantly African- American university. FAMU, as it's known, has 9,500 students. And plays a huge role in the advancement of the South's black community.
LARRY ROBINSON, PRESIDENT, FAMU: We can provide the student immediately, right. We have so many kids who are first generation students that when
they leave here, the average level of compensation is greater than that of the household that they left. So, we made a life changing event occur in
four years.
QUEST: Any idea that these students have been so turned off by this year's bizarre election, they won't vote, is far from reality.
UNIDENTIFIED MALE: For me is mandatory. I feel like it is important for us young students, or young adults, to go out and support --
UNIDENTIFIED MALE: I was always thinking about voting. It's very important for us young people to vote so we can have a voice.
QUEST (on camera): What do you think the biggest issue has been for people of your age in this election?
UNIDENTIFIED MALE: Failing to vote. That's an issue.
QUEST: What do you make of the election so far?
UNIDENTIFIED FEMALE: I have to say I'm disappointed. Because I just turned 18. It's my first time to vote, and it's not what I expected it to
be. Or like what I have seen in the previous elections.
QUEST: Did you even think about Donald?
UNIDENTIFIED FEMALE: No, no, no.
QUEST (voice-over): At the tailgate parties outside of the stadium, there is plenty of opportunity to enjoy real southern food.
QUEST (on camera): I see it's chicken.
UNIDENTIFIED FEMALE: Drunk chicken.
QUEST: Drunk chicken. What do you mean by drunk chicken?
UNIDENTIFIED FEMALE: It's chicken on a beer. He's drunk.
QUEST: The drunk chicken will wait and drink more. I'm trying to find Donald Trump supporters.
Could you ever bring yourself to vote for Donald Trump?
UNIDENTIFIED FEMALE: No.
Are you sure you don't want to think about it?
UNIDENTIFIED FEMALE: No. I don't want to think about it.
QUEST: What do you make of the election?
UNIDENTIFIED MALE: What do I make of the election? I've got to vote for Hillary Clinton. I like her. She is a good girl.
QUEST: The very suggestion to the FAMU alumni that they might support Mr. Trump is rubbished.
UNIDENTIFIED MALE: I can't see a Black African-American like myself voting for Donald Trump, no I cannot.
QUEST (voice-over): In an election, full of ranker and spite, here there is still much to celebrate. For instance, school's homecoming king and
queen and the award-winning marching bands performance at halftime. For some of the freshmen students this election is their first time to vote.
Skeptical and cynical they may be about politicians, but they're still excited to cast their first ballot.
UNIDENTIFIED FEMALE: I think it would be amazing to have a first woman president. Honestly, my heart would just soar. Because that's something I
got to see and contribute to.
[16:10:00] QUEST: I'm not surprised I failed to find any Trump supporters here, even so I leave FAMU reinforced by having met students who are
determined to vote whatever the outcome on November 8th.
(END VIDEOTAPE)
QUEST: We're joined by Nathan Molina, the president of the student body here at FSU. To put this into some perspective, this University is
absolutely vast. How many students are here, Nathan?
NATHAN MOLINA, STUDENT BODY PRESIDENT, FSU: About 42,000.
QUEST: 42,000?
MOLINA: Yes, sir.
QUEST: If you had to judge a guess, what would you say the political makeup would be of that student body. Predominantly what or is it too
different to say.
MOLINA: One of the things I'm proud of most at the university is it is very dynamic. And so, the political makeup ranges from one end of the
spectrum to the other, absolute other.
QUEST: What do they want? What do these students want? I know that is like how long is a piece of string, and how can we generalize. But what
from your understanding is their big issue?
MOLINA: It's nearly a philosophical question. Because a student coming to college is getting an education so they can mold the world once they're out
of college. So, you have most people wanting to get jobs out of college.
QUEST: When they talk about jobs and they're looking at jobs, is this a politically active school body here. Because certainly, I was at FAMU
yesterday, which is a rival college, if you like, just on the other side of town, and I found an extremely politically active bunch of people, what
about here?
MOLINA: Yes, we're a politically active campus. We have our college Democrats, our college Republicans and a range of other political
organizations. And so, we haven't had as much campaigning for one candidate in the past few weeks, more people having people register to vote
so that we can engage politically.
QUEST: On a personal level, sir, and I'm not going to ask you, who you're going to vote, but I am asking you the issue, how worried are you -- hold
are you by the way?
MOLINA: I'm 21.
QUEST: Twenty-one, excellent. There we go. As a 21-year-old, how worried are you that this election has been so bitter?
MOLINA: That it has been bitter?
QUEST: Yes.
MOLINA: What makes me worry is that we're not seeing candidate visions, right? In deciding to run for president of the United States, one of these
candidates said, I have a vision of America that is a better version of the America we have now. I'm worried that we're getting lost in the
bitterness, but I think as soon as we have a candidate, those visions will come out.
QUEST: One final question has occurred to me briefly, we're always fascinated when we visit universities, how much does it cost a year to go
to this school, roughly.
MOLINA: I'd say the average student really works hard to get provisions from the state government, from the federal government and so --
Yes, yes, how much does it cost?
MOLINA: I would say around $6,000 for the average student.
QUEST: $6,000, a bargain. Put up the fees. A bargain. Thank you, sir.
MOLINA: Of course, thank you.
QUEST: Thank you for joining us. As we continue from Florida State University. We're in the sunshine state, all week from north to south.
We're going to turn our attention to the perspective merger between AT&T and Time Warner. The opposition is mounting on Capitol Hill.
(COMMERCIAL BREAK)
[16:15:21] QUEST: Welcome back. American Quest as we make out way with Mustang from Tallahassee to Key West. And it's the start of the week we
are in the state capitol hill of Florida, and what a week where politics, Florida, AT&T, Time Warner, it all comes together. AT&T announced over the
weekend that it is to buy Time Warner. A deal worth $85 billion. And the reason it is this deal it is united political enemies. It's only just been
announced and it's part of, respectively, the presidential election. Donald Trump says that deals like this destroy democracy. And Mr. Trump
says if he is elected president, a president Trump would cancel the merger.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: AT&T is buying Time Warner and thus CNN, a deal we will not approve in my administration.
Because it's too much concentration of power in the hands of too few.
(END VIDEO CLIP)
QUEST: As for secretary Clinton, her advisors have said the deal will be closely scrutinized and she's already promised to beef up anti-trust
enforcement. Of course, if the deal goes through, at least progresses further, and whoever is elected, then this deal AT&T and Time Warner will
be the first immediate and very urgent test of their anti-trust policies. Bernie Sanders says the Obama administration should kill the deal before it
goes any further. He says in a tweet, "This deal would mean higher prices and fewer choices for the American people." And just a reminder, of
course, as we proceed, CNN is part of Time Warner, which is our parent company. AT&T's chief exec says the merger is unique. He words were,
unlike any deal done before. CNN's Claire Sebastian in New York, looks at the lessons we've learned from antitrust cases in the past.
(BEGIN VIDEOTAPE)
AL JOLSON, THE JAZZ SINGER: You ain't heard nothing yet.
CLAIRE SEBASTIAN, CNN CORRESPONDENT: In the 1927, Warner Brothers "The Jazz Singer" was the world's first feature length talking picture. And
this was the world's first telephone call in 1876 by Alexander Graham Bell. Two very different legacies trying to become one.
PORTER BIBB, MANAGING PARTNER, MEDIATECH CAPITAL PARTNERS: Typically, and historically, big combinations of different companies of content and
distribution fail because the culture is difficult to assimilate and combine and make one and one equal three instead of one and one equal one
and a half.
SEBASTIAN: Time Warner has grappled with these challenges before. In the 1980s Warner Communications merged with Time Inc. the publisher of "Time"
magazine. These magazines were spun off again in 2014 as sales decline. In the 1990s they added TV news with Turner Broadcasting and CNN. That has
proved a crucial selling point in this latest deal. And in 2000 at the dawn of the millennium, they tried to move online with AOL. It was billed
as a merger to lead the convergence of Internet and media. A bet on the future. Just nine years later Time Warner spun off AOL for about 2 percent
of the original price.
UNIDENTIFIED COMPUTER VOICE: You have mail, baby, yeah.
BIBB: The mistake that both companies made was thinking that Time Warner was a content and AOL was a distribution pipeline. AOL was not a
distribution pipeline. It was a portal.
SEBASTIAN: This time around Time Warner and AT&T will be kept as separate entities, the CEO say. And the two companies' operations don't overlap.
They be kept as separate entities and the two company's operations don't overlap. Unlike another deal AT&T attempted in 2011.
RANDALL STEPHENSON, CEO AT&T: We tried to buy T-Mobile. That was a horizontal integration. That was a concern that the government had is that
a competitor was viewed to be taken out of the market.
SEBASTIAN: Government opposition eventually killed that deal costing AT&T $4 billion.
The key to making this work analysts say is not just learning the lessons of past deals. It's about recognizing that the way that media is
distributed has changed for good and one thing matters more than anything, mobile.
BIBB: The era of individual media mobile is over. It's now really, who's going to be able to get the content to the new consumer via mobile.
SEBASTIAN: If this deal is approved by regulators, experts say, we could see many more tech and media tie-ups singing the same tune.
[16:20:00] Claire Sebastian, CNN money, New York.
(END VIDEOTAPE)
QUEST: Now we're enjoying the Florida sunshine, Paula Newton is in New York and has been speaking to the chief executive of T-Mobile USA.
PAULA NEWTON, CNN CORRESPONDENT: Are you trying to rub it in, Richard? The weather isn't the studio is not as good. But as far as --
QUEST: Yes.
Newton: -- you are trying to rub it in. So, Richard, I know you spoke to John Legere many, many times and I know you're never surprised by what he
comes up with when he as has his reaction. So, right off the top, I asked him, what did you think about this merger? And I think you'll be surprised
at his answer. Take a listen.
(BEGIN VIDEOTAPE)
JOHN LEGERE, CEO, T-MOBILE: How ridiculous would it be if CNN and CNNI's content and capability was restricted just to customers of AT&T.
NEWTON: OK, but John, let me stop you. That's not what they're talking about though, John. You know what they're going to talk about. They're
going to say, look, you love unlimited, you love unlimited data and so, OK, fine. They're going to say, look, you can watch as much of that Time
Warner library as you want. And guess what? It's not going to cost you a cent or a gig against your data.
LEGERE: Yes, and Paula, where did that idea come from? So, here's a fascinating learning. On this phone, I have right now, which is a T-Mobile
phone, I have a DirecTV app. Because I'm a direct TV customer in one of my homes. On this, on T-Mobile, I can watch DirecTV content without using the
data. That's what we do. That's what Bingon was. T-Mobile One is all unlimited data. What we're about now is finding ways to have these 70
million customers we have, have ubiquitous access to what they want to watch where ever they want to watch it. Not somebody that's going to say,
hey, you can watch what we sell, and maybe will give you a break on unlimited. Paula, they're bleeding. They're trying to get into new
businesses.
NEWTON: So, John, tell me, in the regulatory market here, because it has to be approved here in the United States and in Europe, by the way. But
what would you say to the FCC, the Federal Communications Commission about this deal?
LEGERE: The main thing about the deal is, we have to be sure that they're not going to preferentially control content. Now by the way, it would be
dumb anyway. Because all of their content provides their capabilities to the full marketplace and that's why there profitable. So, you have to make
sure they don't use this power and I'm sure that will be the main part. Secondly I think it is extremely important that we make them divest
"Batman". AT&T should not have control of "Batman" that's my second main condition.
NEWTON: You know, you're allowed to editorialize, I'm not going to hold you back. But "Batman" aside, listen, if they are going to offer all of
those "Batman" movies and I've lost count of how many there are. And then there's the series and everything else. Look, I'm serious, John. Can they
not eat into the plan that you started? This whole concept of the sky is the limit? Unlimited data? That's what they're getting towards.
LEGERE: No, the trick here now is going to be -- so my strategy for the long-term is to figure out how do I become, let's say, an aggregator of
aggregator. A search and discovery for the available content that is available and give my users the ability to search, and find, and use on a
mobile device as my customer. Second is, I'm also going to partner, align, and possibly even merge with likeminded people that see that the whole
world of content is going to the internet and all Internet is going mobile. And where you're a major part of that. This move today by AT&T is exciting
in the short term, because they're eye will be off of the ball and will grow in the short term. And in the medium to long term, it's going to
accelerate the kind of things that I started out to do in the very beginning.
(END VIDEOTAPE)
NEWTON: All right, we're going to rewind a little bit here and go back in history and we are going to speak of the failed merger between Time Warner
and AOL last decade. Time Warner CEO chief, Jeff Bewkes said, "You should have combined a donkey and a rabbit and gotten a flying unicorn." Bewkes
is hoping this deal with AT&T will finally get him that flying unicorn he's been chasing. But before it's over there are regulators who could,
obviously, clip those merger wings.
Now the Department of Justice and the SEC were heavily criticized for allowing the similar deal between Comcast and NBC to go through in 2009.
Now at the very least, they're likely to slap conditions on this deal, at least some conditions. Then there is the U.S. Congress not to be left out.
The Senate committee on antitrust, yes, they've already announced hearings on the proposed deal for next month already.
And finally, it will likely have to get past international regulators. The European Union has historically had a much tougher stance on antitrust
cases. Joining me now is Rich Greenfield, a media analyst with BTIG.
[16:25:00] We were discussing how busy your day has been. One of the reasons it's been so busy, the regulatory environment. How tough is this
going to be? Because if you look at where Time Warner stock landed today, down. Most people are kind of sane saying, hey, 50/50.
RICH GREENFIELD, MEDIA ANALYST, BTIG: Look, the challenges this is hard. And if you put it through the Comcast/NBC, which you just mentioned and
pointed to, this deal is going to have a lot of trouble. Because if you think about it, the government really regrets that transaction, approving
it. When you look at the DOJ, I think there is a lot of feelings within the government that that deal should never have been approved. That
Comcast actually had poor behavior, violated the spirit of the consent decree, and they feel like that's a transaction that probably did not
achieve the consumer benefits that they had hoped when they approved it.
Now let's be clear. Not liking something in hindsight is different than having a legal basis to have stopped it. So, the question is, can you stop
AT&T, Time Warner? Because remember, this may have to go in front of the FCC, it may not. We're not sure yet. That's part of why I think the stock
is moving the way it did is because we're not sure on the FCC.
If this is purely a DOJ, we're a nation of laws, you need a legal basis to actually -- you actually have to file a lawsuit, the government would, to
block this transaction. And the question is, what is that headline going to read? Because I want to just step back for your viewers. One of the
interesting things is when Comcast and Time Warner tried to merge. Time Warner Cable, and Comcast tried to merge --
NEWTON: And that's Time Warner Cable, not to be confused with anything we're talking about now.
GREENFIELD: Not to be confused. Sure, they tried to merge. And the government looked at that and said, not only does Comcast have NBC, but now
they are trying to add more distribution. There was a fear that Comcast was the only way that NBC content could reach the end consumer. Because
basically they were a monopoly of broadband. Wired broadband, the fixed facilities coming over the wires to your home.
If you think about AT&T, they don't have much wired broadband. They actually compete in the video business, which is DirecTV. Lots of
competition. They compete in wireless world, cellular, where whether it's you having T-Mobile or me having AT&T or my colleague Matt having --
NEWTON: Lots of competition.
GREENFIELD: -- there's lots of choices. And so, the point is it that you have all of these choices for service providers. So, when the government
puts it through the lens of Comcast/NBC and look at the fact that they don't have wired broadband, will the government actually come out and say,
look, as much as we're worry about these things, there is actually from an AT&T perspective, lots of competition.
NEWTON: Rich, I have to ask you, even if this deal goes through, why do it? I think, people have been scouring the research notes today looking
for why bring this together? Because, again, during the investor call, they said, look, this is basically a company bolted on to AT&T.
GREENFIELD: Going to movie premiers is a lot more fun than cell phone launches.
NEWTON: Oh, come on, Rich.
GREENFIELD: No, seriously, seriously. The reality is AT&T -- you know my colleague Walt Piecyk covers AT&T -- they face a very intense competition
landscape. You just had John Legere, up on TV. This is an incredibly competitive world for wireless. The cable business, the cable network
business that CNN International and CNN is part of, has a lot of challenges. Actually, I think it's entering a period of secular decline.
But it doesn't face the same type of challenges that the wireless business does. So, in many ways this is a diversification to a less bad business.
Provides a lot of cash. So, if you think about this from AT&T's perspective, they were a really unique buyer. And that's why you shouldn't
over read implications for the rest of media.
Most people don't want to buy cable networks right now. That business looks like live linear television has real challenges. Most people would
look at that and go, why do why want to be buying a legacy business like cable networks? I want to buy the future. I want to buy content. So, in
this case, AT&T wanted to get at Warner Bros. Wanted to get at HBO and was willing because of their need to support their dividend was willing or
wanting to actually take on the slower growth or challenged Turner businesses.
And so, I think this is really for AT&T. They saw this prize over here of content. They saw the challenges over here, but they can manage that
challenge. Just like there managing DirecTV. And they were able to put this all together. And I don't think there's another buyer. I think
that's why Jeff is selling now. And I think he's going to be remembered as actually getting out while things still looked OK for media. Whereas
others are knocking to be so lucky.
NEWTON: Getting out at the top. AT&T paying a big premium for that.
GREENFIELD: A big premium.
Rich, thanks so much and will have you back, because this deal will continue on for a while.
And just coming up here, we go to Richard back in Florida. And as you just heard there a lot of news with the merger, but also a lot of news with our
new polls, right, Richard?
QUEST: Indeed. When we come back, the Trump economy. We'll be talking to a Republican on campus.
[16:30:00] (COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS from Florida and just a moment. I'll be meeting members of the U.S. Congress
who are trying to get out the vote for Hillary Clinton in the Sunshine State. Will also meet a college Republican. And we're going to show you
which household appliances may have triggered last week's massive cyber- attack.
For all of that this is CNN and on this network, the news always comes first and Paula has the headlines.
NEWTON: A new CNN/ORC poll has Donald Trump trailing Hillary Clinton by five points among likely voters nationwide. She is ahead 49 percent and
he's lagging behind at 44 percent. It also shows that both candidates have consolidated approval from their core group of supporters.
A police training academy is under attack in Quetta, Pakistan. The Army says 5 to 6 terrorists stormed the academies hostile where some 500
recruits are housed and took them hostage. The military has now been deployed.
Authorities in France say more than 2,000 migrants have now left the refugee camp in Calais and have been placed in temporary shelters. This
action comes as France begins clearing the camp known as the jungle. As many as 6,000 people are still living inside.
QUEST: Welcome back to Tallahassee. The state capital in Florida. Beautiful weather that we're enjoying and the politics here is even hotter.
Earlier when I was at FAMU, which is the college on the other side of town, watching the Rattlers playing. I also met three Democratic members of the
Congressional Black Caucus. They were in Florida. They were going north to south and east to west. I particularly wanted to know, bearing in mind
that this part of the country and this part of the state tends to be more Republican than Democratic, why their bothering to even come to the
panhandle.
(BEGIN VIDEOTAPE)
YVETTE CLARKE, HOUSE DEMOCRAT, CONGRESSIONAL BLACK CAUCUS: We had to be here in the heart of the battle in Florida, which we know will be going for
Hillary Rodham Clinton. We came in as surrogates to pump up her vote, get out the vote.
QUEST: Do you believe that Florida with its 29 electoral votes will be as significant this time around?
[16:35:00] DONALD PAYNE, HOUSE DEMOCRAT, CONGRESSIONAL BLACK CAUCUS: Absolutely, Florida is very important in this race. Because being a swing
state and going for secretary Clinton as it is, the next swing state will see that and it could snowball effect across the country. So, Florida is
really the start of what we think is something big in the swing states.
QUEST: Florida is emblematic of the whole country from the southern part of Florida to the panhandle.
MARC VEASEY, HOUSE DEMOCRAT, CONGRESSIONAL BLACK CAUCUS: Absolutely, and of course we're in Tallahassee. So, we're in the northern part of Florida,
which is the South. And I can tell you that after the parade today, of course we're at Florida A&M University, and there were little kids that
were like, Hillary will write him Clinton. Old people, middle-aged people, everybody is really excited. I think that Hillary is going to do well
here.
QUEST: But not in the panhandle. In the panhandle where we are, it is conservative with a small c.
CLARKE: We believe that it is going to come down to who pulls their vote out. And what we're seeing a lot of enthusiasm here in Tallahassee for
Hillary Rodham Clinton. A very strategic ground game that will pull out her vote.
QUEST: But ma'am, being here, and talking to this crowd, as you're familiar with the phrase, preaching to the choir. You should be out
talking to those who are disaffected. Who are, you're hoping to turn from Donald Trump.
CLARKE: We're hoping that neighbors will speak to neighbors. If we build enthusiasm among the people in this part of Florida, that becomes
contagious. For those who are rethinking who they are voting for, they will see the momentum coming out of these portions of Florida and they get
on board.
QUEST: We're beyond trying to turn the other lot. You're really now trying to shore up and get that vote out.
PAYNE: We're doing both. We're preaching to the choir and were working on converts. We're doing both.
QUEST: Oh, come on. With respect. You don't seriously expect that to happen.
VEASEY: I think there will be some converts here. You a man running for president, Donald Trump, that cannot articulate any foreign policy
positions. That says that it's OK to freely grope women. There are going to be a lot of conservatives that are going to be turned off by that and a
lot of them are going to vote for Hillary Rodham Clinton.
(END VIDEOTAPE)
QUEST: That was the Black Democratic Caucus at FAMU. Well, with me is Fletcher Gilmore, a college Republican chairman at FSU, Florida State
University. Good to see you, sir, thank you.
FLETCHER GILMORE, REPUBLICAN CHAIRMAN, FSU: And an absolute pleasure.
Let me, look, you were a Trump supporter before really even the campaign got into the stride?
GILMORE: That is correct. Yes, I was a Trump supporter from the very beginning.
QUEST: I hear as saying why. What is it about Donald Trump's policies that you like?
GILMORE: He's just a strong leader. He's someone we can trust. He's someone I can truly believe will make our country better, stronger, and
he's really for the American people.
QUEST: So how do you square the circle, if you like, of his comments, his "Access Hollywood" comments, and the variety of women -- many allegations
that have not been proven of course -- but have come out making sexual allegations against him.
GILMORE: Nobody is perfect. People say a lot of things. No one's perfect. Every man has flaws. Donald Trump definitely has his flaws.
Hillary Clinton certainly has her flaws to. Just at the end of the day you have to go with who is best adept to lead this country.
QUEST: I listened to the debates probably as closely as you do. What I found lacking in many answers was detail on policy. If it was immigration,
it was just better, it's going to be bigger, it's going to be better, we're going to repeal. If it was healthcare health care, were going to repeal
Obama Care, but no detail of policy.
GILMORE: Yes, you're completely right. Donald Trump is much better at not giving away our secreting to other nations. I agree with have to agree
with you there, sir.
QUEST: If no one knows what you're going to do, how do you manage to keep allies together?
GILMORE: I'm sure Donald Trump communicates with the heads of other nations far better than he does with the general-public.
QUEST: Final question. And I ask this with respect, but I can hear some viewers saying, somebody of your age, they will find it very difficult to
believe that you're supporting Donald Trump.
GILMORE: Oh, I am 100 percent behind Donald Trump. The people behind me, were 100 percent behind Donald Trump. The people around us are certainly
for Donald Trump.
QUEST: Sir, it's going to be a fascinating day. Thank you for taking the time to join us.
GILMORE: Thank you for coming to Florida, sir.
QUEST: It's a very big school, 41,000 -- as I travel around the country, tomorrow I'm going to be in Claremont, and this is my vehicle of choice.
We're moving in the opposite direction. Look at this. We go from here to Orlando, then to Palm Beach. Then we had to Miami, and we end the week in
Key West. And Paula, I wish you could come along for the ride, but it's -- you're there, I'm here, the top is down and --
[16:40:00] NEWTON: I'm in the freezing cold studio that you left for me, Richard. Thank you very much. When you're in that Mustang buying me my
gift, please make sure is it is not tethered to the internet. And I'm going to tell you why. Hackers are targeting your webcams and your baby
monitors, but they're not spying on you. This gets very complicated. But we will explain the new cyber threat to you posed by the Internet of things
when we come back.
(COMMERCIAL BREAK)
NEWTON: More details are emerging about the massive cyber-attack that took out the websites of some of the biggest companies in the world and involves
tens of millions of IP addresses. Now it started here in Northeast United States and spread all the way to London where Samuel Burke is right now.
You know, Samuel, this was a new kind of attack. I mean, how were they able to do this using the everyday items that we have in our homes?
SAMUEL BURKE, CNN MONEY TECHNOLOGY CORRESPONDENT: The everyday items that are connected to the Internet, Paula. And if you've ever wondered, why do
I need a toothbrush that connects to the internet? Well, you're going to be even more skeptical after this cyber-attack, which was arguably the
largest cyber strike ever waged in the history of the Internet. It turns out that a virus has been going around infecting these Internet of things,
as we call them.
Devices in our house like security cameras, which connect to Wi-Fi. Our DVR's, which you used to record QUEST MEANS BUSINESS, and web cams. So,
all of these devices were actually sending traffic from our homes to a company called Dyn. Now, you probably never heard of them, Paula. But
there actually part of the backbone of the Internet. And so, when you go to Netflix.com, Dyn make sure you get there. Once all of our devices were
sending all this traffic to Dyn, the Internet really came to a halt for so many people from London to New York.
NEWTON: Samuel, very, very quickly. Do we know who is at the bottom of this right now? Do you know who's responsible for?
BURKE: It's fascinating to think such a big hack happened. No group has taken responsibility for it. The FBI isn't pointing their fingers at any
nation, but a Chinese company called Xiongmai, they're admitting that that they make a lot of the components for these devices that were compromised.
And now they're saying they're upgrading their software and doing a recall for a lot of the web cameras they produce in the United States. So, a
Chinese company played a small role inadvertently, or a major role inadvertently. But nobody's pointing the finger at China.
NEWTON: OK, Samuel Burke, from London appreciate it.
Michael Kaiser is executive director at National Cyber Security Alliance and he joining me now. Michael, from everything that we know, do you have
any indication that we know who it is and why they launched this kind of attack?
MICHAEL KAISER, EXECUTIVE DIRECTOR, NATIONAL CYBER SECURITY ALLIANCE: Well, I don't have any additional indication about who it might be. I
think, you know, this was a distributed denial of services attacks. So, the goal of the attack was to try and impact the Internet by people not
having access to some of these key websites that they use on a daily basis.
[16:45:00] NEWTON: What can we do to prevent it though? Because as you said these products are ubiquitous now. These devices are tethered to
internet. And obviously, no one can know they are being used to launch these cyber-attacks.
KAISER: Well, my understanding of this attack is it really comes down to one of the most basics part of the internet. Which are username and
password. The credentials in these devices, the log on and the password had never been changed. They were defaults and they were across millions
and millions of devices. With the proper credentials or what we like to call authentication the attack could have been prevented.
NEWTON: It could have been prevented but it is like telling people to floss their teeth and they don't. Why isn't it built in? Why after all
these years we still don't have those protections built in? Are we moving towards that?
KAISER: It is an excellent question and we need to build it in and we're moving more and more toward that. For example, we have been working a lot
about educating people to lock down their log ins, to use something beyond a password and their user name, but the manufacturers play a very, very
important role here.
They need to create the device in ways that those credentials either have to be changed when you get the device or they use some other form of
authentication to prove who they are to the network before they access it.
NEWTON: When you saw this unfold, here and then across the pond, how much did it concern you?
KAISER: It concerns me a lot, this is national cyber security awareness month in the United States, actually this week we're talking about the
internet of things. This is kind of what we worry about, right. We worry about these billions and billions of devices that are coming online in the
near future and they must be secure. We are going well beyond our laptops and cell phones to all kinds of devices which may not get the kind of
attention that the computer in our pocket does in terms of security.
NEWTON: Are we ready for the internet of things? Because if it is going to be this disruptive, people can imagine it can do a lot of damage to a
lot of different things, like financial institutions, energy grids.
KAISER: I hope this is a wake-up call. I think we are probably not quite ready, the more sophisticated the device or when enterprises are putting
them in place, they're probably looking at the risks that are associated with it. When people are putting them their homes and small businesses,
they're not doing a risk analysis of how much data is collected, where it is going, who is going to see it and what would happen if it was
compromised.
NEWTON: Thank you, Michael Kaiser live from the NASDAQ.
(BEGIN VIDEOTAPE)
QUEST: A piggy bank used to be the safest place where you put your spare change. Now imagine a city where people actively don't use cash. As part
of our new series Europe 2020, I went to Stockholm, Sweden to see how far the Swedes are from the true cashless society?
Stockholm, a stunning city of Scandinavian design, technology and innovation. Credited with exporting the likes Skype, Spotify and of course
the iconic band Abba. Immortalized in an interactive museum in the city center.
Money, money, money. Must be funny in a rich man's world.
Abba sang "Money, Money, Money" and the band raked it in in the hundreds of millions, just don't try to spend any of that cash here at the Abba museum.
The museum is cashless, like much of Stockholm, a symbol of the way that Swedish society is moving forward fast.
JAN BROMAN, CEO, FOTOGRAPHISKA MUSEUM: I never carry cash. Never, I haven't done it for many, many years.
QUEST: Down the road at the popular Fotographiska Museum, the chief executive Jan Broman could not wait to ban cash.
BROMAN: I wanted to do it in 2010, but the rest of the crew we can't, it's too early. Mainly it is a security issue. We are sort of in the middle of
nowhere here in Stockholm, and we have long hours that means our staff is exposed to something they should not be. And when we remove the cash they
are not. There are a lot of cashless places in Stockholm already. We're early, but we're not in the front.
QUEST: Do you even know what cash looks like?
BROMAN: That one I have never seen. That is quite new, yes. I have never seen it. I'm sorry.
QUEST: The true cashless society of Sweden. Here at Florida State University, the school's acapella group are making their beautiful voices
heard and you will hear those after the break.
(END VIDEOTAPE)
[16:50:00] (COMMERCIAL BREAK)
QUEST: American Quest in Florida. Florida State University has one of the nation's best music departments. It is full of young first time voters and
they also have an all-female acapella groups, called the Aca Bells.
(BEGIN VIDEOTAPE)
MEG VAN DEVENTER, FRESHMAN, FLORIDA STATE UNIVERSITY: This is my first election, and I'm really excited because I think this is one of the most
important elections at least that I have ever been following. And I'm ready to cast my vote.
QUEST: You are ready to cast your vote for whom?
VAN DEVENTER: For Hillary Clinton. It is jarring but I know what my first choice is going to be, but I still wish I could have been presented with
two candidates that I saw as equally viable options for president of the United States.
GRACE HAYES, FRESHMAN, FLORIDA STATE UNIVERSITY: It is sad to see a lot of kids my age that are also first time voters that are showing such apathy,
or such like disillusioned with the two choices. But to me I am actually very excited to vote. Because I feel that there is really on clear choice
and it's Hillary Clinton.
QUEST: When you go to vote, will you do it with a happy heart?
UNIDENTIFIED FEMALE STUDENT: I will do it with a hopeful heart. One of the biggest issues in terms of domestic issues is the issue of such a
strongly ingrained racism and sexism that we find still today, in a country that is so systematically ingrained in our society that it needs to be
pushed toward eradication.
QUEST: Was there ever any doubt you would vote?
ELAINA ZWIENER, FRESHMAN, FLORIDA STATE UNIVERSITY: No, I have been adamant about the right to vote, I think that is a very special thing, and
not voting is kind of silly. The fact that I could be voting for the first woman president is amazing. I think if you think about a world where
people grow up and they don't know anything else other than a woman president, I think that is absolutely amazing. We have come such a long
way.
[SINGING]
[16:55:00] QUEST: Marvelous.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment, and so American Quest is under way as we start our coverage here in Tallahassee in the panhandle of Florida
state. A state that will be crucial for one simple reason, it has chosen the winner in the last five presidential elections since 1996 and done so
in many times in controversial circumstances like in the year 2000 with Gore versus Bush and in the last election when president Obama won Florida
by just 1 percent.
We're here because the north is more conservative, the south more liberal. What you really get in Florida is a microcosm of the United States. It has
a growing Latino Hispanic vote, and new industries coming in. That's what we're bringing you. You heard the young my millennials that say they will
vote. And perhaps you'll hear a more conservative Trump view that says anyone but Hillary.
This is the vehicle that we're doing it in. The Mustang convertible, 2016 model, the throaty roar of its five-liter engine. I'm Richard Quest in
Tallahassee. Whatever you're up to the in hours ahead, I hope it is profitable.
END
