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Quest Means Business
Wall Street Welcomes Trump With A Bang; Donald Trump Transition; At Least Seven Killed In London tram Accident, Driver Arrested. Aired 4-5p ET
Aired November 09, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:01] JAKE TAPPER, CNN THE LEAD HOST: Van Jones, thanks so much. It's always good having you on. We appreciate it. Be sure to --
VAN JONES, CNN POLITICAL COMMENTATOR: Thank you brother.
TAPPER: -- follow me on Facebook and Twitter, and please check out Van's Facebook page to see his three part series right now, The Messy Truth.
You can also follow me on Twitter or follow the show at The Lead CNN. That's it for The Lead. I'm Jake Tapper.
I turn you over now to Mr. Wolf Blitzer who is in The Situation Room. Thank you for watching.
RICHARD QUEST, ANCHOR, QUEST MEANS BUSINESS: (INAUDIBLE) on Wall Street an hour ago with the Dow Jones Industrials heading towards record territory on
a day that was really quite like none other. What could have been a terrible day for the market ended extremely positively even with a sort of
many robust gavel. It's Wednesday. It's the 9th of November.
As markets push close to an all time high, a mind boggling swing that took place on election night.
And tonight, the largest economy in the world chooses a bold new path and President-Elect Trump. And (INAUDIBLE) CNN, it's time for Trump and China
to work together.
From the world's financial capital, New York City, I'm Richard Quest and of course, I mean business.
Good evening. We are going to take it slowly and we are going to dissect exactly what happened in the financial world tonight, after the post got
the election room and the futures got the market wrong.
Of course, overnight we saw terrible market numbers. But the Dow opened with small gains and yet, after a few stumbles in the first hours, it ended
with the rise of more than 250 points within 40 points of its all time closing high, which indeed it had reached during the course of the
Wednesday session.
It was a stunning comeback. The futures had been off more than 800 points overnight as the output of the outcome of the election became clear.
Now, the broader markets, the S&P 500 and the tech-heavy Nasdaq saw similar gains, with gains over 1%.
Now, let's just pause for a moment and just think about what I've just said. As the market numbers became clear during the course of the night,
as the poll numbers became clear during the course of the night, you had this tremendous fall off in the Dow Jones futures.
We're all expecting a most bloody session. Indeed, that's what was seen during the Asia trading day. Europe benefited from an encouraged New York
open. I mean New York outgoing the sectors that saw most from the Trump bump.
Well, there were banks about speculation of a looser regulation. Health care companies, congresses unlikely to cut down on drug prices and of
course, there'll be a reform of Obamacare.
Industrial and construction companies like Caterpillar, so a gain of 7.7% on the back of the hope of more infrastructure spending as part of Donald
Trump's economic plans.
America's largest bank, JPMorgan Chase, was one of the top five gainers. Only a few weeks ago, Jamie Dimon had been predicting a Clinton victory.
And yet, on election morning, the result of, he sent this memo to JPMorgan's employees.
He urged them to listen to the voices that brought us Brexit and President Trump. He said, "We have heard through democratic processes in both Europe
and United States the frustration that so many people have with the lack of economic opportunity and the challenges that they face." This is the key
bit. We need to listen to those voices.
Now Mohamed Aly El-Erian returned to in times of economic uncertainty. Chief Economic Adviser at Allianz joins us live.
Mohamed, a deep breath. I think we should have a deep breath just to take in the momentous events of the last 24 hours. And I need your
understanding. What happened last night as the results came in, that was reversed so dramatically during the trading day?
[00:05:04] MOHAMED ALY EL-ERIAN, CHIEF ECONOMIC ADVISOR, ALLIANZ: There was one event, Richard, in particular that triggered the reversal and that
is at about 2:00, 2:30 New York time, Mr. Trump delivered his victory speech and delivered a very consolatory unifying speech. And at that
point, things started to change in the market.
And then, later on, as New York opened, we heard from other leaders on both sides including President Obama, including Secretary Clinton, and there was
a sense of the system coming together at least for now.
Plus, we didn't hear any of the things that frightened the markets. We didn't hear anything about terrorists. We didn't hear anything about
dismantling NAFTA. So put these two things together and the market just did amazing reversal, like you say, a thousand points.
QUEST: But you will agree surely that the actual policies upon which he stood clear -- let's not beat around the bush, we're a man of the world,
the trade policies and lack of free trade or protectionist, the tax policies and the immigration policies, the infrastructure ones and so on.
And they are going to create a huge amount of uncertainty in the economy.
EL-ERIAN: Yes. But there's two types of uncertainty. There is the uncertainty that comes from bad policies and there's this other uncertainty
comes from good policy. So, let's start with the latter.
If he were, and it's a big if, but if he were able to work with Congress on the poor growth measures, infrastructure spending, corporate tax reform,
public-private partnerships, less regulation, then that would be a growth stimulus for a country that needs it and that's capable of doing it.
If, however, he accompanies that with his anti-growth measures, particularly protectionism, slapping terrorist on China and on Mexico,
dismantling NAFTA, dismantling Obamacare, that would be anti-growth.
So, the market right now is choosing to focus on the first set of measures hoping that they will gain traction in this new environment but we will --
we shall see.
QUEST: Are you concerned -- well, first of all let's clarify what issue. Do you believe that the fed raises rates in December or is it now far too
risky to start tinkering with the monetary dials?
EL-ERIAN: So, had you asked me at 2:00 in morning when we were down almost 800 points as indicated by the futures, I would tell you that the
instability in markets would sideline the fed.
If the markets continue on this better tone, the fed now has an additional reason to hike. Why? Because inflationary expectations are going up. And
we saw that in a massive sell off on the bond market, the 10-year treasury moved almost 20 basis points. That is very, a very large move.
So, the Fed would say, you know what, marcus.com, the employment objective is met. Inflationary expectations are going up. So, a lot would depend --
QUEST: Why should the bonds -- I mean, I'm aware of the relationship between the bonds and if you like equities to some extent. But if
President Trump's policies imply huge amount of deficits, I can understand that might require a higher yield to finance that. But that's still some
way off.
EL-ERIAN: Correct, but markets try to price the future and they figured out, you know what, he may actually try to embark on a massive
infrastructure program. That will mean a lot more supply. It will also mean more inflation and the whole bond market we price. And it really did
move, Richard. That was one of the big moves today.
QUEST: Mohamed, good to see you. So, we are go -- do not go too far in the weeks and months ahead. We're going to need your in depth analysis.
These are dangers times in markets as the movements take place. Thank you, sir.
EL-ERIAN: Thank you.
QUEST: Now, when Hillary Clinton's concession speech was televised on the floor of the stock exchange, there was loud booing and chants of lock her
up. This is at one trade that told Clare Sebastian.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's two levels of Wall Street professional. There's the -- there's the higher up elite Wall Street professionals that
are making millions of dollars. Again, their interest was status quo, you know.
Clinton presidency presented that. That's why I'm sure they backed her despite, again, politicians, despite her rhetoric to the counter that they
knew that she would have been a friend of theirs. They hade a lot to lose by her losing.
And then there are the rank and file people that work in Wall Street and that's really the floor of the exchange. These are very much -- many of
them middle class, hard working people supporting their families.
(END VIDEO CLIP)
[16:10:09] QUEST: Mexico's foreign minister says her government is ready to discuss NAFTA with Mr. Trump after last night's win. The president
elect has made it a policy to either renegotiate the trade agreement with Mexico or if that's not possible, to use the clause and withdraw from
NAFTA. Claudia Ruiz Massieu said Mexico remains committed to free trade.
(BEGIN VIDEO CLIP)
CLAUDIA RUIZ MASSIEU, SECRETARY OF FOREIGN AFFAIRS, MEXICO: We know that day, 22 years after NAFTA was signed and came into effect there is an
opportunity to modernize it so that it's more beneficial for different countries involved. And we are willing to talk about this with the new
government and with Canada as well. But we remain committed to NAFTA, to the North American vision, and to free trade as a means to creating
prosperity, jobs and opportunities for our peoples.
(END VIDEO CLIP)
QUEST: Now John Engler is the president of the Business Roundtable, who represents CEOs, companies like AT&T, Boeing, G.E. and IBM.
John, we're glad to have you with us. It's one of those days frankly where -- and all and every piece of analysis.
So, come on. You don't need to mention names but we do want to get that insight from you that you have from chief execs. What were they telling
you today?
JOHN ENGLER, PRESIDENT, BUSINESS ROUNDTABLE: Well, I think the first thing is that everyone was pleased with the tone of about the acceptance speech
last night, Secretary Clinton's comments today and even the president's comment.
So, that's just the beginning of a healing process. And so, regardless of how rough and tumble this campaign was, now let's give him a chance to talk
and act in a different way. And everybody is playing their part at this point from the policy standpoint.
Lots of things changed last night. The Republican retention of the Senate leaves that body as a potential willing partner to work with the House
leadership and the new administration. We can see some things getting done.
The ascent of Senator Schumer to be the Democratic leader and the Senate also is a bit of very positive news in terms of the ability to collaborate
and the Schumer-Trump New York connection ought to be helpful as well.
QUEST: Right. But, you know -- I mean, there's no question. The policies -- I mean, all right. So, a lot of the policies with -- they will like for
maybe lower tax rates possibly start. We could start possibly they did their policy to allow the repatriation of tax --
ANGLER: Not a good start.
QUEST: -- of funds back, on preferential terms. And but for instance, this idea of covering companies that choose to move jobs overseas, the so called
Ford issue on all the (INAUDIBLE) any of that issue. They're not going to like that.
ENGLER: Well, look, if you get the incorporate tax rate down for those companies that are competing internationally, if you fix the repatriation
issue, I mean, we're competing as to the world where everybody has got territory of system basically except the U.S. where we're still pursuing it
was some futility worldwide system.
We're going to change that. It's made us vulnerable to tax changes in Europe and frankly it is a noncompetitive or anticompetitive imposition
that we put on our own companies. Let's get that off.
Chairman Kevin Brady, Speaker Paul Ryan did a lot of work. They've got a plan that I think now with this president is potentially the basis where
that compromise starts to come together. If we do that, we think the CEOs, it's a roundtable. You want to add 1% GDP growth in the U.S.
Modernizing code which hasn't been touched in 30 years get us competitive there. One percent GDP --
QUEST: Right --
ENGLER: -- is fully in revenue over a 10-year period. That's a nice contribution to fixing other problems.
QUEST: Except -- OK. But if you read Donald Trump's contract, where would the American vote? He also says specifically within the first 100 days to
have his trades or have the treasury name China as a currency manipulator to begin the process of renegotiation or withdraw from NAFTA to abandon the
TPP. Now, you must be concerned of a --
ENGLER: Sure.
QUEST: -- tit for tat trade war.
ENGLER: Well, yeah, especially I mean China is not in NAFTA. We know that's Mexico, Canada, and U.S. And we also know this, that the overriding
objective of a Trump administration, they talked about this everyday for many, many months now, he wants to get economic growth moving in America.
That aligns nicely with certainly the companies that are at the roundtable. We think workers and families in America out to have a more booming
economy. We've been limping along.
[16:15:00] First administration, the Obama administration, it's Hoover administration, not even get 3% GDP growth in a year. So let's get that
growth moving.
You don't do that by unraveling trade agreements where they're working. If you could make them better, just like Mexican minister was pointing out,
sure. Let's do that. But it's an important economic fact that the U.S. where we've got the FDAs in place, we actually have a positive balance of
trade.
All right. So, clearly, undoing those would go the wrong direction in terms of growth. That won't help. But if you can make it even better,
have at it.
QUEST: Sir, we are going to need your help too in the weeks and months ahead. So, we look forward to having you again on Quest Means Business.
Thanks very much.
ENGLER: Thank you very much. I look forward to it. This is a very important topic.
QUEST: Very important don't forget to (INAUDIBLE).
Right now, morning in the United States revealed the political system that had held firm. On Wall Street, the traders kept their nerve after a tense
night. And now, we need to make sense of it all as we work out the machinations, the ramifications, and who wins and loses.
(COMMERCIAL BREAK)
QUEST: So, to the victory speech of the president-elect, but he promised to double American economic growth and make the U.S. the strongest economy
in the world. President-Elect Trump has vowed to overhaul the economy in his first hundred days in office.
Now, they'll call the chief execs of U.S. companies with overseas operations. And they will inform them they will face 35% tariffs on
products made abroad in certain circumstances.
He'll notify NAFTA partners Mexico and Canada of the renegotiations or the withdrawal under Article 2205. He will withdraw from TPP even before it's
coming to force or been ratified. That is if President Obama doesn't get you ratified in the lame-duck Congress, which in fact you're seeing more
and more likely.
And he said he will get his trade's own treasury secretary to designate China as a currency manipulator. In the earlier hours, Trump spoke of
unity and healing. He said he wants to find ways to tap America's tremendous potential.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Working together, we will begin the urgent task of rebuilding our nation and renewing the American
dream.
I've spent my entire life and business looking at the untapped potential in projects and in people all over the world. That is now what I want to do
for our country.
(END VIDEO CLIP)
QUEST: Now, Mr. Trump talking to China time and time again on the campaign trail and the -- China's president tried to put up behind him when he
called president-elect.
Xi Jinping congratulated Mr. Trump and expressed his hope of stable relations with the country.
[16:20:00] The manifesto and trade folk is on China more than any other countries. He promised to brand it as a currency manipulator and bring
complaints against China's code on conduct on trade.
Jack Ma says if Donald Trump doesn't work, China is going to be a disaster. Well, he was talking to Andrew Stevens.
(BEGIN VIDEO CLIP)
ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: Do you fear the U.S.- China relations under a Trump presidency?
JACK MA, EXECUTIVE CHAIRMAN, ALIBABA GROUP: Well, I don't fear. I think a healthy and positive China-U.S. relationship is so critical especially in
this century. Number one, number two economy in the world, if they're working together, they can solve a lot of problems, poverty, disease,
environment. But if they don't like -- if they don't work each other, it's going to be disaster.
STEVENS: But if you look at what has been said on the campaign trail, China, a currency manipulator on day one of the Trump presidency, massive,
punitive taxes, tariffs on Chinese goods going to the U.S., that must worry you.
MA: A worry to me but it's not that much. I think when he becomes the president, when he have the burden because before I become of the CEO of
Alibaba -- I can' talk like this and that.
When I become the CEO of Alibaba, I know life is not easy. The world is not that simple as he sat. Donald Trump becomes the president of America.
And he is smart person. He will adjust. He should never and he would never neglect the relationship between China and America.
STEVENS: Jack, if you were asked to give advice to a new Trump administration, what would you tell them?
MA: Focus on trade, improve globalization, and improve the relationship and the understanding between China and America. We are in 21st centuries.
Working together improve globalization. Working together improve trade, that will help both countries create more jobs.
STEVENS: Have you ever met him?
MA: Not yet.
STEVENS: You were quite close to President Obama. You appeared on stage several times together. Are you looking forward to meeting the new
president?
MA: Yes. I'll be happy to discuss with the job creation, small business entrepreneurship, trade between America and the world, and trade between
China and America. This is I would love to discuss. I think nobody can neglect business, trade, job, small business, entrepreneurs in the 21st
century.
(END VIDEO CLIP)
QUEST: Jack Ma talking to Andrew Stevens. Betsy McCaughey is a Trump supporter who is named on Trump's Council of Economic Advisers. Betsy, how
wonderful to see you.
BETSY MCCAUGHEY, DONALD TRUMP ECONOMIC ADVISER: Thank you.
QUEST: Well, we've been over the fences a few times during the election. So, it does behoove me to congratulate you on the victory by your
candidate. But now let's get down to some brass tacks as we say from where I'm coming from.
MCCAUGHEY: That's right.
QUEST: What do you -- what's the priority in that first hundred days do you think?
MCCAUGHEY: Well, in fact, the president-elect has laid out his first hundred days. It include tax reform and we're optimistic that he will be
able to get a tax package through Congress because last night, the results are clear that Republicans maintain control of both houses of Congress
although it's a slim majority, very slim in the Senate.
But nevertheless, Trump is going to put forward a package of tax reforms that will cut corporate taxes and individual rates. And he promises that
no business in the United States will pay more than 15% on its profits. In addition --
QUEST: Oh, yes, yes go on, go on have your addition.
MCCAUGHEY: In addition, and I'd really like to underscore this because it's certainly a big part of his victory last night. He is going to
unleash energy production in the United States. Take a look at the results in Pennsylvania. Mrs. Clinton was counting on a big urban turnout in
Philadelphia to carry all over the line in the electoral college with Pennsylvania's votes.
But in fact, Donald Trump appealed to the people of Pennsylvania largely because of energy, fracking, coal production, natural gas production, oil
production, those are all very important to Pennsylvania. And I know that it really helped win him the election and it's also going to put many more
Americans to work. In addition that --
QUEST: Can you agree -- can we agree that Hillary Clinton's concession speech was exceptionally graceful?
MCCAUGHEY: It was exceptionally graceful. And let me point out also that I found that Donald Trump's victory speech the night before was
exceptionally gracious to Mrs. Clinton as well.
QUEST: Yes. Yes.
MCCAUGHEY: Both of those speeches really laid the groundwork for a post- electoral comedy in the United States.
QUEST: So, how does a Trump presidency work now with a Republican Congress, because you're a politician through and through?
[16:25:10] You know that quite often it's when it's your own side that's in the legislature, it's difficult because they start to get to become awkward
because as they try to get their own way.
MCCAUGHEY: That's right.
QUEST: And they try and blackmail you. And they try to deals with you. So, it could have difficulties with some of his policies with his own side.
MCCAUGHEY: Oh, that's very true and in fact there's already a great deal of speculation how well or poorly will we get along with House Speaker Paul
Ryan for example who's expected to win reelection to that key post easily.
But, with all of that said, as long as the Congress and the president focus on economic issues, I do not expect a lot of discord. On some social
issues, there may be. But almost all the Republicans in Congress are very committed to the tax cuts and more importantly --
QUEST: OK.
MCCAUGHEY: -- even to the regulatory relief. They are lining up to repeal Obamacare for example.
QUEST: And what -- would -- a yes or a no. Would you like to join the administration?
MCCAUGHEY: Of course I would be thrilled to help my country and my president-elect in any way that I could.
QUEST: Are you going to join? Oh, come on. Don't be coy, Betsy.
MCCAUGHEY: No, I would --
QUEST: You've never been accused of being coy.
MCCAUGHEY: I would be thrilled but no one has asked and it's premature. Let me just say that I'm eager to help in any way. And I have to tell you,
I am thrilled that we are now poised to repeal and replace Obamacare. Never mind its detrimental impact on healthcare and it's been sizable,
especially for seniors.
But, this law is really impeding employment. The Federal Reserve of New York just came out with the report that showed that 17% of service sector
businesses and 23% of manufacturing businesses in New York State have put a lid on hiring to avoid the employer mandate.
QUEST: All right. Madam, health secretary is rumored to be heading your way. We look forward to seeing if that happens. And if it does, then
you'll be always welcome --
MCCAUGHEY: Then we'll have our dinner, Richard.
QUEST: We have our dinner anyway. We have our dinner anyway.
MCCAUGHEY: Yes. Look forward to it. Thank you so much.
QUEST: Donald Trump forged his way to the Oval Office with no shortage of divisive comments and insults.
In just a moment, Van Jones of CNN was on our air on Tuesday evening when he asked how a parent could possibly tackle some of the issues the election
results have thrown up.
JONES: You tell your kids don't be a bully. You tell your kids don't be a bigot. You tell your kids do your homework and be prepared. And then you
have this outcome and you have people putting children to bed tonight and they are afraid of breakfast. They're afraid of how do I explain this to
my children.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS. In just a moment, we'd be live outside Trump Tower as Donald Trump's
transition to the White House begins.
And (INAUDIBLE) says it's Brexit two and the chief executive of WPP tells me what president Trump means for his company. Before that, you're
watching CNN. And on this network, well, the news, it always comes first.
Donald Trump has been spending the day after his election speaking with world leaders and huddling with advisers about key roles in the Trump
administration.
That is lamenting his victory, it was a time for sadness and reconciliation. President Obama tried to set back tone as he reacted to
the vote.
(BEGIN VIDEO CLIP)
BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: We are now all rooting for his success in uniting and leading the country. The peaceful
transition of power is one of the hallmarks of our democracy. And over the next few months we are going to show that to the world.
(END VIDEO CLIP)
QUEST: Hillary Clinton reiterated that message with a gracious concession speech which she told supporters, "Mr. Trump deserves a chance to lead."
She apologized for failing to shatter that highest and hardest glass ceiling and said someday someone will.
Despite losing the electoral vote, Mrs. Clinton still has a lead in the popular vote.
The U.S. stock market simply astonished as it erased early losses and closed the day (INAUDIBLE) higher. All three major indices were up more
than 1%. Now the markets are rattled after the win including Mexico where the stock market slid. The peso fell more than 1.11% against the U.S.
dollar.
British police said seven people are dead after a tram came off the rails in South London. Dozens of people are hurt and the course is under
investigation.
Police say a man has been arrested. Officials are to assess how and when to remove the tram from the tracks.
Very good evening to you wherever you're watching on QUEST MEANS BUSINESS. It is around 5:30, 5:32 to be precise on the East Coast of the U.S. And
America is now doing what it has done for 240 years, beginning the peaceful transition of power after a campaign of chaos and vitriol. A political
outsider who was once dismissed as a joke has now been elevated to the highest office in the land.
As the Speaker of the House put it, Donald Trump heard a voice that nobody else heard. A voice from white working class citizens, people fed up with
Washington, fed up with the media, and not prepared to trust Hillary Clinton.
Those voters heard Donald Trump. And on Tuesday in schools, churches, community centers across the country they made him president elect. Some
of the votes are still being counted. He has 60 million also so far. Those voters read you America's political map as states Democrats accounted
on (INAUDIBLE). Paul Ryan accredited Mr. Trump to helping Americans hold on to the House and the Senate.
So now the election is over. And leaders from both sides are divvying up and dividing the line up behind the president-elect. The new unifying tone
started with the president-elect, reassured America and the world.
(BEGIN VIDEO CLIP)
TRUMP: It is time for us to come together as one united people. It's time.
I pledge to every citizen of our land that I will be president for all Americans, and this is so important to me.
(END VIDEO CLIP)
QUEST: He says he'll be a president for all Americans. This election has revealed the United States is deeply divided on the lines of race and
class. And the proof is in the exit polling. Americans making less than $50,000 a year went for Mrs. Clinton, those making more voted for Trump.
White voters were the only group the president-elect won by a majority. Meanwhile, the minorities made their choice clear. He scored only 8% of
the black vote and just 29% of Latino and Asian voters.
It appears Secretary Clinton will win the popular vote by a small margin. Now you remember last week we explained the Electoral College versus the
popular vote. You can win the popular vote and have more people vote for you and still lose the presidency. It's happened five times in the history
of the United States. And the last time being in the year 2000 between Bush and Gore. We have to go back more than a century before the previous
occasions.
[16:35:06] Mrs. Clinton spoke in New York, conceivably delivering the toughest speech of her life.
(BEGIN VIDEOL CLIP)
HILLARY CLINTON, FORMER SECRETARY OF STATE, UNITED STATES: We have seen that are our nations is more deeply divided than we thought. But I still
believe in America and I always will. And if you do, then we must accept this result, and then look to the future.
(END VIDEO CLIP)
QUEST: Before Democrats can move forward, they must look at what went wrong. The anger, the hunger and the call for change that Mrs. Clinton
couldn't satisfy. Seventy-two percent of people in a Reuter's poll agreed with the statement that the American economy is rigged to advantage the
rich and the powerful.
That survey was carried out on Election Day. Sixty-eight percent said that traditional parties and politicians don't care about people like me.
Fifty-seven percent feel that more and more I don't identify is what America has become. Startling numbers and deeply distressing.
Van Jones served as a special adviser to President Obama. He calls the result a "white-lash".
Van, good to see you, sir. And here is the question, and it's a tricky one because you have an electorate that feels left out, disadvantaged,
underappreciated, and poorer off. And yet, they went for the billionaire who seemingly did not share their economic wellbeing. Explain.
JONES: Well, it's not who he was. It was what he was appealing to in the country. And he actually -- unlike Mitt Romney who four years ago was
almost ashamed to be a wealthy person, Donald Trump trumpeted the fact that he was a wealthy person and appeal to the sort of, you know, a success and
glorification of celebrity that's such a big part of American culture.
So he neutralized that as a line of attack. He made that something that was positive and he coined this, you know, blue-collar billionaire, non
sequitur kind of label for himself.
QUEST: And I mean why do -- I suppose the blame game has to take place to some extent or at least the postmortem that has to be long and detailed.
Is it the policies or was it the candidate do you think for the Democrats?
JONES: It was almost certainly the candidate. The policies were policies that they had voted for with Barack Obama in 2008 and 2012. It wasn't that
Hillary Clinton went in some radically different direction. Probably, a little bit more progressive than the Obama platform, just under the force
of the Sanders insurgency.
But I don't think that was a key issue. Here is what has happened. Whenever there's a new form of media, a new a master of that form of media
can sometimes take power. Back in the, you know, beginning of last century, middle of the last century you had FDR. Radio came out, people
thought FDR was a lightweight, but he was just a master of radio and he dominated his era.
People thought JFK, John F. Kennedy, was a lightweight but he dominated television. People thought that Obama was a completely unlikely president
but he dominated the internet, being able to raise money online when that was a big deal, and being able to have the viral videos when that was a big
deal.
Donald Trump understood social media and reality television better than anyone. And so, he was appropriate to the age in which and to the media
age in which he found himself. And therefore, he was able to break a lot of rules and still triumph.
QUEST: Do you think there was an element in this that Americans, American males maybe simply are not ready to vote for a woman for president?
JONES: There are people who feel that way. There was also -- hey, listen, here's what is so difficult to talk about the Trump phenomenon. The Trump
phenomenon has a lot of, from my point of view as a progressive Democrat, positive things in it. It is an anti-elitist rebellion. It is a strong
stand for economic opportunity for Americans.
It is a deeply patriotic movement but it's marbled with all kinds of xenophobia and nativism and a dark whistle racism and sometimes misogyny.
And the marbling makes it complicated.
So then when you try to talk about the marbling, which Hillary Clinton did when she mentioned the deplorables, then it seems like you're saying the
entire movement is bad.
So then some people try to analyze it and leave all that stuff out and just pretend to his supporters that it's all just about, you know, jobs and
kicking out, you know, a corrupt establishment. And it's both. It's a messy mix of stuff and -- but I've got Muslim friends in America and Latino
friends in America who are terrified.
[16:40:09] I have Muslim friends asking me if they should leave the country, wondering are they going to be interned like the Japanese were
interned. These are serious people, professional people who have children they are afraid to send out the front door today because of what happened.
And that's a tragedy in America.
QUEST: Van Jones, thank you, sir. We appreciate it, giving us the perspective and putting it into some context first. Pretty much
appreciated.
JONES: Thank you.
QUEST: We continue QUEST MEANS BUSINESS this evening, reminder the markets and how they finished, and the markets were heavily up having been down
overnight in the free market trading, but almost a record for the Dow Jones or the Nasdaq and the S&P were up by 1%
We'll talk about the president's reaction after the break. Thank you.
(COMMERCIAL BREAK)
QUEST: Donald Trump will make his first visit to the White House as president-elect on Thursday where he will be there at the invitation of
President Obama. The U.S. president said regardless of which candidate voters supported, it's time for the country to come together and work for a
smooth transition of power.
(BEGIN VIDEO CLIP)
OBAMA: The sun is up and I know everybody had a long night. I did as well. I had a chance to talk to President-Elect Trump last night about
3:30 in the morning I think it was, to congratulate him on winning the election. And I had a chance to invite him to come to the White House
tomorrow to talk about making sure that there is a successful transition between our presidencies.
(END VIDEO CLIP)
QUEST: Michelle Kosinski is live from Washington at the White House.
I was really taken not by what the president said, by what his press spokesman, Josh Earnest said later in the day responding to the question,
was this vote a repudiation of everything that President Obama had to some extent and particularly since Obamacare is going to be repealed. And
Earnest basically just -- he flubbed to the question and just said, I don't know.
MICHELLE KOSINSKI, CNN SENIOR DEPLOMATIC CORRESPODENT: Yes. I mean that's kind of how it is everyday here to be honest. The administration doesn't
want to criticize itself. It doesn't always want to second guess itself. Although on occasion, we have them -- we have seen them admit that they
were wrong or that they miscalculated something, but that's extremely rare.
They also don't want to get into the analysis right now. So, it ended up being the most surreal day here imaginable. It's hard to fully describe
it. I mean out there in the rose garden, you had a hastily arranged gathering with the press standing up. And then, behind the press, there
formed this enormous crowd of White House staff, a large number of them either openly weeping or looking like they just finished openly weeping.
And we're trying not to again, hugging each other and holding tissues.
[16:45:01] And then you have the president come out and on a very upbeat note talk about how everybody is on the same team and we have to move
forward together and this is democracy --
QUEST: Right.
KOSINSKI: -- sometimes it doesn't always go right. But you knew how he must be feeling inside.
And then tomorrow to have this meeting happening between the president and the man that he called unfit for the presidency, a danger to national
security and described him as essentially a reality television joke. So they have to sit down tomorrow and talk about moving forward.
You know behind the scenes there's a lot more emotion than -- than they relay to the press. There's a lot more questioning.
At this point though the mood around here is somewhat shell shocked. And behind scenes that's what they're telling us. I mean for now they're just
still numb and trying to respond to it.
So what we'll see out here tomorrow is president sit down with Donald Trump. And what his press secretary told us is that the president is going
to lay out the priorities for some of his policies and tell Donald Trump what the benefits of those policies are.
I thought it was also really interesting today in that press briefing the way the press secretary seem to doubt that Donald Trump would fully roll
back Obamacare where some of the other -- some of the President's other key elements of his legacy.
QUEST: Right.
KOSINSKI: He really put some doubt on that saying that well, you know, other new presidents have threatened the same in the past and that did not
come to pass ultimately. Richard.
QUEST: Michelle Kosinski joining us from the White House. Thank you. So, take it on.
Today, President-Elect Trump will receive the same highly classified intelligence briefings as the president himself according to a senior
administration official. Jim Acosta is at Trump Tower in New York. So the crown jewels of the presidency now start to get revealed. The secret
briefings, ultimately, the nuclear codes when he takes office, and the whole thing feel somewhat surreal according to Michelle Kosinski from the
White House. How does it feel at Trump Tower?
JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: I feel surreal over here as well. And I think that goes for people inside the Trump campaign or as
you might call it now, the Trump transition team. They've been hunkered down inside Trump Tower behind me all day long and sort of getting over the
shock of this stunning upset that many of them did not anticipate, Richard. I think that's worth reminding our viewers. Many of the people inside the
Trump campaign and the Republican National Committee did not see this coming.
They thought their candidate was going to lose. And so in addition to that yes, they are putting together their administration.
There are lots of names being thrown about. New Gingrich, the former House Speaker who is an advisor to Donald Trump, he could become the Secretary of
State. That's been floated.
Reince Priebus, the RNC chairman, could become the White House chief of staff. Donald Trump is very fond of Reince Priebus obviously after what
occurred last night.
Getting back to what you're talking about with Michelle Kosinski, keep in mind Donald Trump is not going to be able to just roll into Washington and
through executive fiat see his entire agenda accomplished.
Repealing Obamacare, reminding our viewers, that is the Affordable Care Act, that is a law. Laws in order to be repealed you have to get that
through Congress.
The Senate is almost evenly divided and Democrats are not going to go along with that. So, Richard, they're going to filibuster that obviously.
And so Donald Trump may have to see his patience tested there and determine how he's going to deal with that. But --
QUEST: Right. But, Jim, talk to -- just a second --
ACOSTA: But yes, so getting to the business of what they're doing now, the way to the presidency is now falling on him quite considerably right now,
Richard.
QUEST: Jim, on that point of Obamacare, you raised a very, very good point. But how much do you from, you know, you have covered Washington for
a long -- a good few years. And how much is Donald Trump entitled to say on something like Obamacare, I have a mandate, I was elected, it was part
of my manifesto, it was clear cut repeal and replace. I have a mandate to do this.
ACOSTA: Right, the president of the United States right now, Barack Obama thought he had a mandate to close Guantanamo. Richard, Guantanamo will be
open when Donald Trump is president of the United States. That did not happen.
Barack Obama had a mandate when he defeated John McCain in both the Electoral College and in the popular vote. At this point, Donald Trump has
defeated Hillary Clinton in the Electoral College. He has not defeated her in the popular vote. And you're going to have a lot of Democrats in
Washington raising this time and again that he does not have this mandate that he thinks he has.
On the point of building a wall on the Mexican border and having Mexico pay for it, again, that is going to require the Congress to pass legislation to
put those expenditures in place to build that water -- that ball -- excuse me, that wall on the Mexican border and then have the Mexicans reimburse.
So you can have -- once you have start gaming these things out, it's a lot more complicated than it sounded out on the campaign trail, Richard.
[16:50:10] QUEST: Jim Acosta will be following every twist and turn and helping us understand what happens. We're really grateful that you are
with you, sir. Thank you.
Now, Sir Martin Sorrell is the chief exec of one of the most largest advertising companies and (INAUDIBLE) companies. He talked to me earlier
about the Trump win.
(COMMERCIAL BREAK)
QUEST: Understanding the ramifications of what took place last night in the United States is going to take some time to unfold incompletely.
When I spoke to the chief executive of WPP who is Sir Martin Sorrell, the world's largest advertising and media group, obviously, he has his fingers
and tentacles in many parts of the U.S. economy and he's certainly a well experienced adviser to those at the top. I asked him what he makes of
Trump's win domestically and internationally.
(BEGIN VIDEO CLIP)
MARTIN SORRELL, CEO, WWP: As far of as his impact domestically in the U.S., if President Trump stands up to his promises and implements the
programs he's been talking about, for example, lowering corporate tax rates, bringing those foreign earnings back to the U.S., reinvesting those
earnings, stimulating Keynesian type government projects, infrastructure projects maybe wouldn't be quite so bad for the U.S. economy. If he
appoints a Reganist type team of four to five good people, as Henry Kissinger would say, men or women who can run the U.S., maybe it wouldn't
be quite so bad.
That I think the big issue, Richard, is what happens politically outside and economically outside the U.S., what happens on free trade, what happens
on terrorism, what happens on immigration, and what happens with any vacuum scores politically in Asia or Latin America or Africa and the Middle East?
Who's going to fill that? Will it be China, will it be Russia? We'll have to see. And that's where the big uncertainties are. But in the short
term, considerable uncertainty on the markets -- U.S market to be exact (ph).
QUEST: How do you explain that? How do you explain the market being 900 down on the futures during the night? Obviously that's a knee jerk. But
when the daybreak arrives and market is closed, it's virtually it's a record.
SORRELL: Well, clearly, there was a long position in front of the election results that then turned into a covering position as we look at the results
coming through last night.
And then I understand that Carl Icahn has made a Trump trade. He put a billion into the market after retiring at 1:00 a.m. in the morning after
the Trump party. So obviously people are in front of him. But I think it's to do with more seriously, not maybe part of it, but more seriously
has to do with his focus on the U.S. economy. It may not be quite as bad from a U.S. -- and also what President Trump elect -- and President-Elect
Trump said last night in response to the election results. It was a healing message, a very different message.
QUEST: Right.
SORRELL: To the confrontational message he'd given before.
[16:55:19] QUEST: You said in your letter, in your note today, we don't know what Trump stands for from a business point of view, who knows, I
believe you've said. But I mean, but we do know there is a -- for want of a better, maybe majority first, an anti-free trade agenda. He wouldn't say
it is that sense.
SORRELL: Right.
QUEST: But a protectionist agenda.
SORRELL: Right. And I think that is the issue. So, America turns inward economically in the medium term that might not necessarily be in bad term
at the time. There is a certainly short-term uncertainty. We see pharmaceutic industry perhaps a little bit more relieved about Trump versus
Clinton. We see defense industry certainly stimulated a bit by what Trump has said about making sure that U.S. defense is strong. So you see all
those things happening.
It's very difficult to predict because we don't know the detail, we don't know the people. We don't know the nominees. But having said that, I
think the real issue -- and what happens, for example, in Europe, Richard, what happens in that Italian referendum, what happens in the French
election with Le Pen, what happens in Germany with any coalition that Angela Merkel has to manage. Does the result of this vote, which was quite
extraordinary, I mean, after all, the Republican party has ended up in precisely the same position as people thought, the Democrats would end up.
(END VIDEO CLIP)
QUEST: Sir Martin Sorrell joining me from Washington. And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever
you're up to the hours ahead, hope it's profitable. "The Situation Room" with Wolf Blitzer is next.
(COMMERCIAL BREAK)
END
