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Quest Means Business
FBI's Comey Defends Actions Over Clinton Investigation; British Prime Minister: EU Officials Trying to Affect U.K. Election; U.S. Senators Call for More Venezuela Sanctions; Facebook Releases Q1 Earnings; Australian PM In Route to Meet Trump; YouTube CEO Says Silicon Valley Needs More Women. Aired 4-5p ET
Aired May 03, 2017 - 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: Delta airlines ringing the closing bell on Wall Street. The Dow Jones absolutely unchanged. Again, another
day of very small moves. That's Ed Bastian, the chief executive of Delta. They're commemorating ten years of being back on the stock exchange. And I
would say a solid gavel from Mr. Bastian, to bring trading to a close on Wednesday. It's May the 3rd.
Tonight, it's all a question of democracy. In Washington, the FBI director says he's sick at the idea he could have swayed the presidential election.
In London, Theresa May accuses Brussels of interfering in Britain's affairs. And in Caracas, protests, clashes, and the prospect of sanctions.
As the leader of the opposition tells me, President Maduro is ignoring the will of the people. I'm Richard Quest, live in the world's financial
capital, and I mean business.
Good evening. Five months on, and Washington is still haunted by the ghosts of the 2016 election as we heard today. The FBI director, James
Comey, has passionately defended his decision to inform congress that his agency, the FBI, was reopening the investigation into Hillary Clinton and
the email scandal when he did so at the end of October just before election day. In a Senate hearing, director Comey said he felt mildly nauseous
knowing the impact his choice would have. While the investigation itself came to nothing, Hillary Clinton this week said she believes it cost her
the White House. Comey made it clear he still believes he made the right decision, and yet he's still wrestling with the demons.
(BEGIN VIDEO CLIP)
JAMES COMEY, FBI DIRECTOR: Look, this was terrible. It makes me mildly nauseous to think we might have had some impact on the election. But
honestly, it wouldn't change the decision. Everybody who disagrees with me has to come back to October 28th with me and stare and this and tell me
what you would do. Would you speak or would you conceal? And I could be wrong, but we honestly made a decision between those two choices, but even
in hindsight, and this has been one of the world's most painful experiences, I would make the same decision. I would not conceal that on
October 28th from the Congress.
(END VIDEO CLIP)
QUEST: The Justice Department, Evan Perez joins me. We've got a lot to get to so let's take it at a fair clip. Not surprised he hasn't changed
his mind, but that was the first time perhaps that we've really heard that sort of passion from within from Comey about that decision.
EVAN PEREZ, CNN U.S. JUSTICE CORRESPONDENT: That's right, Richard. It was certainly the most forceful I've ever heard him speak about that decision.
I knew from talking to people at the FBI that Comey felt strongly he needed to go out there and explain some of his actions to the public. He felt
that some of what happened has been misunderstood all these months. And he called it a decision essentially trying to choose between terrible and
catastrophic.
On the one hand, talking about an investigation just days before the election in violation of decades of Justice Department rules, and
catastrophic, which was essentially perhaps tilting the election. And so, he decided, he said, that he had no choice but to just come out and
describe what the FBI had found just, again, days before the election.
QUEST: And yet one of the Senators pointed out, he did not feel that same compunction to reveal the investigation into Donald Trump, and indeed into
the campaign and the questions of Russia. Leading to the suggestion, what's sauce for the goose wasn't sauce for the gander.
PEREZ: Right, exactly. This is where I think people who already have their points of view, there's nothing that Comey says that will sway them,
because after all, this investigation, the investigation into Russia and possible contacts with members of the Trump campaign, people associated
with the Trump campaign, that began in July of last year, just weeks after Comey had said that the Clinton investigation was closed.
And the way he explains it is this, he says that on one hand the Clinton investigation was done, was finished, and then suddenly they found things
that were relevant and they had to reopen it. In the case of the Trump investigation, the Russia investigation, none of that was known, and there
was a certain bit of an advantage for the FBI to be able to continue to monitor some of those communications that were going on.
QUEST: Now, quickly, towards the end, though, having heard him today, clearly, he is genuine in his belief. Does he come across as being
somewhat either, a man full of integrity or a man full of integrity who may ingenue and a little bit naive in terms of the political effect of what
he's caused?
[16:05:00] PEREZ: I think it's all of the above. I think that's one of the criticisms of Comey is that he always thinks that he is the smartest
guy in the room. He always thinks that perhaps he's the only one who can withstand the criticism of doing certain things. And so, one of the
criticisms that will emerge from this, is that sometimes he may not know best, and perhaps he might allow other people to perhaps take part in
making certain decisions.
QUEST: Evan, good to talk to you, sir, thank you for putting it in perspective as always for us. We hear from Washington and to the U.K.
election. This other part of democracy we're talking about.
There was an explosive claim today when Theresa May, the British Prime Minister, accused politicians in Europe of trying to manipulate the
results. Now, Prime Minister May said, some leaders in Brussels were hoping to see the Brexit talks fail. European politicians were making
threats against the U.K. The accusations came moments after she left Buckingham Palace where she had seen the Queen and so started an election
that will focus squarely on Brexit. Mrs. May says negative reports of that dinner she had with the commission president, Jean-Claude Juncker,
there were signs that Europe was trying to affect the vote.
(BEGIN VIDEO CLIP)
THERESA MAY, BRITISH PRIME MINISTER: Britain's negotiating position in Europe has been misrepresented in the continental press. The European
Commission's negotiating stance has hardened. Threats against Britain have been issued by European politicians and officials. All of these acts have
been deliberately timed to affect the result of the general election that will take place on the 8th of June.
(END VIDEO CLIP)
QUEST: Erin McLaughlin, explain to us please, from London, how these events, how beating up on Britain would affect the result of the election,
since there's an argument that says it might draw people to Theresa May, figuring that they need a stronger leader that will stare down Brussels.
ERIN MCLAUGHLIN, CNN CORRESPONDENT: Yes, Richard, well, her logic here is really unclear. And there is the accusation, though, from the opposition
here in the United Kingdom that Theresa May has been making these rather extraordinary allegations with the Downing Street backdrop for a political
gain. We've heard from Scottish first minister, Nicholas Sturgeon, accusing May of, "Poisoning the atmosphere for partisan reasons."
We have yet to hear from the EU on this matter. We've yet to hear from the European Council or the European Commission, being really remarkably tight-
lipped on these allegations, prior to Theresa May's speech though, I was definitely getting a sense of growing concern that the situation was
getting out of hand especially with respect to this leaked so-called disastrous Downing Street dinner. There was a concern that it backfired,
rather than its intended effect, its intention was illustrate the complexities of Brexit that EU officials were very concerned that the
British government was having problems grasping at those complexities.
Instead, the feeling was that the leak had simply hardened Theresa May's position. But again, we have yet to hear publicly from European officials
on this. It will be very interesting to hear what they have to say, especially European Commission president, Jean-Claude Juncker, who today
was just saying that he deeply respects Theresa May.
QUEST: Erin McLaughlin who is in London for us tonight.
Things are getting particularly ugly over the size of the bill waiting for Britain once they check out of the European Union. One think tank says the
initial cost could be more than 100 billion euros. Much of that could end up being refunded.
Come and look and see the numbers exactly what it is were talking about. The numbers we're looking at, as we talk, the British owe billions of euros
on the common EU budget that hasn't been paid yet. 109 billion is one number. This is all to do with spending on budget commitments that were
already agreed as part of the current budget round which goes to 2020. All of these include investments that were due to happen after Brexit. There's
also the question, for example, the EU investments and pensions, both for EU bureaucrats and the millions of Europeans living in the U.K. Much of
that of course will be offset by pensions that are also paid to British citizens living in other parts of Europe.
[16:10:00] Daniel Hannan is a member of the European Parliament for the Conservative Party. He joins me now from Brussels, good to see you, sir,
thank you. Before we get onto the budget, just explain to me, sir, the logic as you see it, how the hardening of the position, and the ganging up,
as the PM sees it, actually interferes in the election.
DANIEL HANNAN, MEMBER OF EUROPEAN PARLIAMENT, CONSERVATIVE PARTY: Well, it interface in a way that's been very helpful, I have to say, to Theresa May.
Because it's thrown a spotlight on who is going to be speaking for Britain in these talks. And what's incredible is that in Jean-Claude Juncker's own
leaked version of events, he comes out saying he wants us to be worse off as a result of Brexit, and yet a couple of U.K. opposition politicians have
ended up backing the Eurocrat who says he wants us to be worse off. Says that openly, rather than the Prime Minister, who standing up for our
interests. So, I think any fair-minded observer would have to say it's helpful to Theresa May.
QUEST: Do you accept -- let's not worry about the number for the purpose of this question -- do you accept that there is a Brexit bill that will
have to be paid vis-a-vis existing budgetary commitments?
HANNAN: Britain is a country that honors its commitments. And of course, when we've entered into spending commitments in good faith, I don't think
you'll find any mainstream politician in the U.K. who is disputing the idea that we'll pay. The figures that are now coming out of the EU, though, are
a fantasy. I mean, 100 billion is a surprisingly round figure, isn't it, Richard? Almost as though someone had just plucked a figure out of the air
for dramatic or theatrical effect. We will, of course, pay what's owed. We want this to be a cordial, amicable process. We want it to bring
advantages to the EU as well as to us. But there comes a point, if they're just being silly, then to be honest, we're better off with a third-party
deal such as with the U.S. or Australia or any other friendly country has with the EU.
QUEST: Right, that in terms -- but you're not going to be able to walk away without paying something, certainly not as you say, if you're going to
keep your commitments --
HANNAN: Actually, in law we could. Well, in law, I think we could walk away with -- I mean, obviously, we'll pay for the next two years, we're
members, no one is arguing about that. But after we're members, I think the only legal commitments we'll have will be, as you say, things like
pensions of bureaucrats. The idea that we'll have to carry on paying for farm subsidies, for road schemes in Portugal, all the stuff that's now
being thrown in there, is fantasy. Of course, it may be that as a goodwill gesture, in order to have friendly relations with our friends and allies in
Europe, we may want to make some payment.
QUEST: But the very suggestion as you have just done, to even suggest that, well, legally we're not liable to pay, but of course we will pay, but
legally we're not liable to pay, that's the sort of thing that has people saying, the British are looking to welsh on their debts.
HANNAN: It's a statement of legal fact. We have some particular legal commitments, particularly to staff and so on. But look, imagine that you
get divorced, it would be a very sad thing to happen, but you had previously been planning a new kitchen or extension to your house. The
fact that you planned it before doesn't create a legal entitlement after the divorce to pay for it. This is something where they've had three
years' notice. As I say, I do want this and most people in Britain want it to be a friendly process.
QUEST: One final thought I just wanted to raise. Jean-Claude Juncker has said it will be difficult talks. David Davis has made it clear, the Brexit
minister, that the talks will be tough. Theresa May has said on numerous occasions that they will be controversial at moments. None of us should --
adults one and all, none of us should be surprised that there is this jockeying immediately before the negotiations take place.
HANNAN: You're quite right. And I've learned in politics as I'm sure you have in television journalism that it makes more sense to pay attention to
what people say on the record, rather than off the record briefings. It's the on the record stuff that they really have to think about, that they can
be called to account for. If you look at what the EU has been saying on the record and its formal position, it's actually not that far from what
the British government is saying. We're agreed we want a free trade deal. We're agreed we want defense and military cooperation. We're agreed that
we don't want the border in Ireland. We're agreed that we don't want -- we want to preserve reciprocal rights for citizens who have already settle in
each other's countries. So, I would say, on 85 percent there is broad agreement. Of course, there is going to be a row about the money and so
on. But I think it's perfectly possible to have a deal that's reached in good faith and that brings benefits to both sides.
[16:15:00] QUEST: Daniel Hannan in Brussels. Thank you for staying up late and talking to us tonight. And please, we'll need your help as these
negotiations move along to understand what's happening. Good to have you on the program. Thank you.
HANNAN: Thank you.
QUEST: Now the Markets. The pound is now falling below 1.29 as stocks finish mixed. Shares in a number of Apple supplies fell after
disappointing iPhone sales. In Germany, Deutsche Bank rose after it emerged that a Chinese company is now its top shareholder.
In Washington, the Federal Reserve decision was unanimous for no change in interest rates. The chair and her committee held a target range for the
main interest rate at .75 to 1 percent. And interestingly, although there was no change, that much was a given. What did they say on the economy?
They noted it slowed in recent months. A trend that are likely to be transitory, that will be the word you and I will talk about over many
months ahead, transitory. The near-term risks appear roughly balanced.
To the Markets and how they traded. Look at that. All week, we are seeing this tight range for the Dow Jones Industrials. They went down. There
wasn't much of a loss overall from 20,950, a 20,000, and 40, 50-point range, maybe an 80-point range over the course of the day. One a rate hike
is looking more likely, things may move in a different way. But the Dow added just eight points at the close. The NASDAQ was lower. Transitory.
Paul La Monica, they're saying that this slowdown is transitory.
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: Yes. We need a shot of our favorite liquor here, because that's, I think, the new buzzword for the
Fed. You do a shot every time Janet Yellen or another Fed member says that. Kidding aside, it's reassuring that the Fed is not worried at all
about that slow economic growth in the first quarter. They really seem to think that things will pick up as they usually do as the year progresses,
even if we don't get any stimulus from tax reform or other help from Trump and Congress.
QUEST: I'm fascinated by the fact that this Dow is trading in a range of maybe 100, 150 points on a daily basis. It tells me that it wants to go
higher and that actually the air is not coming out of this balloon just yet.
LA MONICA: It doesn't appear that it is, Richard. Right now, investors are still cautiously optimistic that Trump will get some victory in if not
the next hundred days before the end of the year. And he may not need all of his legislative agendas go through. Most people I talk to think tax
reform will be sufficient, if they don't repeal or replace Obamacare, don't repeal Dodd/Frank or tweak it or what have you, even if they don't get some
big infrastructure spending plan through until 2018, tax reform is such a big thing that people want that that will be sufficient.
QUEST: I haven't got time to take you on on that one. Next time.
LA MONICA: Another day.
QUEST: Another day with another liquor. Transitory. And with that, he took another sip.
Venezuela's opposition leader is on his way to Washington making his case to put more pressure on Nicolas Maduro, the President, as the humanitarian
and economic crisis is ready to boil over. We'll talk to Julio Borges, next.
(COMMERCIAL BREAK)
[16:20:00] QUEST: Welcome back. Profound and tragic. That's how U.S. senators describe the crisis gripping Venezuela. Now a bipartisan group
has put forward legislation to stop the hemorrhaging. It all happens as Caracas suffers another day of violent clashes between demonstrators and
law enforcement. The new bill is calling for sanctions that would target corruption and individuals who are said to be undermining democracy in
Venezuela. It would provide $10 million immediately in humanitarian aid. I was joined on the line from Caracas by the opposition leader, Julio
Borges. Interestingly, after our interview he caught a plane to Washington where he's hoping to ramp up pressure on Nicholas Maduro. The line that we
had had to be secured. Had had to be encrypted He told me his fight isn't for control of Venezuela, he wants democracy to prevail.
(BEGIN VIDEOTAPE)
JULIO BORGES, PRESIDENT, VENEZUELA'S NATIONAL ASSEMBLY: Our fight is just a democratic path. Which is elections that has to be done according to the
constitution. But right now, Maduro has created an excuse, which is a national assembly, a constitutional assembly in order to stop elections in
Venezuela. It's very important to say that this constitutional assembly of Maduro, it will not be elected by the people. It will appointed by the
government.
QUEST: Do you support the call by Senators in Washington for more sanctions against Venezuela or against the Maduro government?
BORGES: Listen, these are individual sanctions regarding personal crimes against human rights and even organized crime. We have to be open that any
person that has broken the law in Venezuela and abroad has to be punished, even in the case of human rights, it's very important to send a very clear
message that human rights protection will have protection. We are fighting against an regiment that's against democracy and human rights.
QUEST: We did quite a lot of coverage this week on the whole question of General Motors pulling out or at least being kicked out and having the
factory sequestered. Is it your feeling that pretty much no Western company wants to do business now in Venezuela at the moment, and the
economy is really teetering on the brink of collapse?
BORGES: Yes. In recent years, half a million companies has closed, has shut down in Venezuela. You have a huge number of people without
employment. People are leaving Venezuela to other countries. There is no possibility to buy food or medicine. We are in a real humanitarian chaos
in Venezuela.
QUEST: Who has the key to this? Is it a regional pressure that needs to be brought? Obviously, the U.S. only has limited opportunity here. What
do you, sir, as you come to Washington tomorrow, what do you see as the key to you unlocking this situation?
BORGES: The key is in the hands of Venezuela. I call for the help of the international community to make an additional effort to achieve a
democratic solution in Venezuela. It's the only way out that I see.
(END VIDEOTAPE)
The leader of the opposition in Venezuela. The saying goes in New York City, it's always a good idea, after the first hundred days of the Trump
administration the city's tourism board is now blaming the president and the administration for a potential drop in tourism. NYC & Company, a New
York company, is launching a new marketing campaign. It's called "New York Welcomes the World." It's part of the effort to combat the message which
seems to be coming from the administration.
The forecast is there will be 300,000 fewer foreign tourists to the big Apple this year. Put that into dollar terms and it's $600 million that
won't be spent in this city that I'm speaking to you from now. Amounting to a $120 million bite out of the big Apple's tax revenues. Let's go
downtown towards Brooklyn Bridge. A wonderful view, I think the bridge has been repaired, and is certainly back to normal. Good to see you, Fred
Dixon, CEO of NYC & Company. Fred, good to see you, sir.
FRED DIXON, CEO, NYC & COMPANY: Good to see you.
[16:25:00] QUEST: These numbers, when you put them out in the forecast, as you're obliged to do, you would have known they would be politically
explosive, because you are blaming, or at least attributing the effect and cause to the administration's policies.
DIXON: True. There is a direct correlation we're able to draw based on research that we have done. The last forecast revision for 2017 came in
October, so just before the election. We were coming off an incredible year, lots of new hotels in New York, attractions, we were bullish about
the business for 2017. We revisited the forecast in February after the first travel ban and saw there was a change.
QUEST: So, what is the reason? The travel ban doesn't affect that many people.
DIXON: Yes, it's true, it's an interesting situation, certainly unparalleled in our experience. The travel ban only affected six or seven
countries, we know it's been overturned and held up. But it's the impact on the image of the United States as welcoming, and the perception actually
matters to visitors. We've seen some markets respond, the Toronto school board for example, has banned all trips to the U.S. this year. And we're
just concerned about future business. We haven't seen the impact yet, but we need to remind the world we're open and welcoming for business and
leisure.
QUEST: Effectively what you're saying is whether it's the devices ban on planes from some countries, we know Emirates has cut flights, or it's the
fact of extreme vetting, you're seeing this as putting people off who might not normally be affected by these things.
DIXON: That's right. And that's what the research has shown. They showed three major areas of concern. Western Europe which largely can make
decisions based on policy and rhetoric. Canada, which of course our closest neighbor and the cross border is at issue. And certainly Mexico,
the talk of the wall has caused a lot of corporations to decide to take their business and meetings to Europe. It's a real concern. It's
something more closely watching.
QUEST: How concerned are you? That's an obvious question. You're still going to get 12.5 million.
DIXON: No, we're going to be fine.
QUEST: It's not like the hotels will be empty.
DIXON: No, the hotels are not going to be empty.
QUEST: They'll still be too expensive.
QUEST: That's another question for another day perhaps. But the city will do well this year. And domestic tourism is expected to grow actually
greater than last year. So, were actually very positive about the future. We're just very concerned about the image of the country is a welcoming
destination, particularly for meetings and conventions. We've heard some buyers and exhibiters and certainly speakers that have been turned away
because of previous travel to the Middle East. It's just something that we're flagging, we're keep our eye on. Tourism is a big business in New
York and even a small dip is big numbers, as you pointed out.
QUEST: You'll be aware one of your residence, citizens, Donald Trump, lives not a mile from where we are, or his main home is. He won't welcome
this, because you're effectively saying exactly the opposite of what he's saying.
DIXON: What we're asking very simply is, we are always safety and security first, so we absolutely support that decision. But we need to remind the
world we're welcome. The question we would pose is, is there a way to say both. We think there is.
QUEST: The message is what?
DIXON: The message is, were closed to terrorism, but in the United States all are welcome.
QUEST: Good to see you, Fred.
DIXON: Good to see you. Thank you.
QUEST: Facebook earnings have just come out. For the first time in a few quarters, they missed expectations, not hugely. I'm going to give you the
numbers. They have still got a cash pile that's absolutely humongous, not in Apple's league, but tens of billions. We've have the Facebook earnings
after the break.
[16:30:00] (COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There's a lot more QUEST MEANS BUSINESS in just a moment. These are the results from Facebook, we'll be talking
about that. Mark Zuckerberg dips his toe into politics. Puerto Rico is declaring bankruptcy, the governor is joining me next. But first, this is
CNN, and the news always comes first.
In France right now, the only and last televised debate before Sunday's election is taking place. Emmanuel Macron and Marine Le Pen have been
doing battle on topics from immigration to the economy. The latest poll suggests that Macron has the advantage in the race.
Tough questions in congress for the FBI director at a senate committee hearing. James Comey strongly defended his choice to tell congress that he
was reopening the investigation into Hillary Clinton's email servers only days before the presidential election took place.
President Trump's vowing to work as a mediator in an effort to work at peace talks between Israelis and Palestinians, as he met the Palestinian
Authority president, Mahmoud Abbas at the White House. He said peace must be achieved through direct negotiations.
On health care, two key U.S. Republican lawmakers support a revised health care plan after meeting with the president. That proposal adds $8 billion
over the next five years to fund a high-risk pool for patients with preexisting conditions. This is a symbolic break in the efforts to replace
Obamacare which had almost collapsed.
Facebook signings are out. If you just want the straightforward numbers, the company slightly missed expectations and came in at 104, and the
forecast was 8 cents higher. It was better news on the number of active users, up 17 percent monthly active users, up 17 percent. And daily active
users up 18 percent on a year on year basis. It all happens as the day the company announced it would hire 3,000 more people to monitor content after
murder videos were recently broadcast on Facebook. Shelley Palmer, good to see you.
SHELLEY PALMER, CEO, THE PALMER GROUP: Good to see you too.
QUEST: Shelley, what do you make of the numbers?
PALMER: I don't think the numbers matter at all. They're right around what people expected, slightly off in some cases, users are up. The story
of Facebook is the story of data. They're one of the most data-rich companies in the world. Their business model is activating data at
advertisers, a job at which they are particularly well suited and they're doing extremely well.
QUEST: Is it for their own benefit or to sell to other people? For the moment, it seems to be for their own benefit.
PALMER: You can look at it both ways. Actually, their job is to package their audience and sell it to an advertiser. They're trying to put the
right message in front of the right person at the right time. That's pretty much what they're capable of doing. They have a data set that's not
matched. And they have a set of users that is exceptionally large.
QUEST: I mean, income was around 8 billion.
PALMER: Not bad.
QUEST: But cash equivalence, they've got 32 billion in the bank at the end of q1. That's not Apple money.
PALMER: No.
QUEST: But it's an enormous amount for any company, to have $32 billion.
PALMER: I mean, look, they're doing well. They obviously have enough cash to do the things they want to do, whatever acquisitions they need to make,
they're capable of making. They're trying to figure out a video strategy that is going to take them to the next level. The media business is in a
particularly interesting place right now. Traditional television is changing. Facebook has a very strong video play. They are well-invested
in chat apps. I'm very bullish on Facebook, if you can't tell. This earnings report, while not the most stellar ever, the fundamentals are
still the fundamentally fundamentals. This is data company and they are data rich and they are going to be able to monetize it long term.
QUEST: Since you used the phrase that you're bullish, do you own the stock?
PALMER: I don't. I don't own any stock, Richard, never have, never will.
QUEST: That's fine. Just wanted to make sure. I do have Facebook in my portfolio.
PALMER: Fun for you.
[16:35:00] QUEST: Since I asked you, it's only fair that you ask me.
PALMER: True enough.
QUEST: Absolutely. Finally, Zuckerberg himself. What happens to him? What does he do? We'll talk about it next. What's your gut feeling?
PALMER: Look, he's the president of the internet. Whether he wants to admit it or not, he is the president of the largest body of human beings
probably in the world. And so that comes with some responsibility. He has yet to exercise. I'm very much looking forward to Mark's next move.
QUEST: Mark. Mark. First name terms. Thank you very much indeed. Well, Mark as Mr. Palmer calls him, Mr. Zuckerberg to the rest of us, is spending
some time away from Silicon Valley. He's planning to visit all 50 states this year. So, over the weekend, he visited the swing states, if you look
-- oh, dear. He clearly has not learned the politician's mantra. Don't be seen with children or animals unless you have to be? He visited Michigan,
Ohio, Indiana, and Wisconsin. It doesn't get more -- running? There you are in a factory. There you are with a family. There you are with working
men and women in a canteen. And there you are showing you know what it's like down on the farm. CNN's Clare Sebastian reports on what might be the
political making of "zuck."
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN CORRESPONDENT: Any politician would be proud of these optics. In the last ten days, Mark Zuckerberg visited a Ford plant in
Michigan, dropped in for dinner with this Ohio family of Trump voters.
UNIDENTIFIED MALE: We did give him crystal wine glasses.
MARK ZUCKERBERG, CEO, FACEBOOK: I'm here with my friend Pete.
SEBASTIAN: And hosted a live car chat with the mayor of South Bend, Indiana. Zuckerberg says this is part of a personal challenge to visit all
50 states. Others have speculated he's test driving a new career.
STEVEN LEVY, EDITOR-IN-CHIEF, BACKCHANNEL: It is strikingly similar to what a politician might do on a listening tour.
SEBASTIAN: He's writing a book about Facebook and has met Mark Zuckerberg multiple times. He says this probably isn't what it looks like.
LEVY: If you're a billionaire running arguably the most powerful company in the world, you think you're on a mission that's good for the world, what
would you have to gain by being in a position that even Donald Trump finds difficult?
SEBASTIAN: And as Donald Trump Marked his 100th day in office, Mark Zuckerberg was in Dayton, Ohio, meeting those affected by the area's opioid
crisis.
LORI ERION, FOUNDER, FOA, FAMILIES OF ADDICTION: I think he just got really emotional and touched by what he was hearing and really just got up
and walked around for a little bit and came back and sat down. Then he was fine.
SEBASTIAN: A day earlier, a student sat next to Zuckerberg in Dearborn, Michigan.
FIANA ARBAB, GRADUATE, UNIVERSITY OF MICHIGAN: My friend had to run to a final exam. He said, I'll call you later. He literally called her and
asked her how her final exam right.
ZUCKERBERG: Last month I wrote a letter on building community. I have it here.
SEBASTIAN: If Zuckerberg were to serve in government, an ambition he's denied, it would trigger a conflict of interest. In a regulatory filing
last year, Facebook said if he left the company, he would lose his majority control unless he was leaving to serve in government. Still, for the 32-
year-old, that decision may be down the road. Clare Sebastian, CNNMoney, New York.
(END VIDEOTAPE)
QUEST: Australia's prime minister is on a tour of the United States of his own. He'll be landing in New York soon where tomorrow he's going to meet
president Trump. After the break, Australia's trade minister will be with us. The issue there of course is how do you put together something now
that trans-Pacific is gone?
[16:40:00] (COMMERCIAL BREAK)
QUEST: Welcome. Australia's prime minister is on his way to New York, traveling 28 hours from Sydney to meet Donald Trump. It will be their
first face-to-face meeting since the uncomfortable phone call back in January. Malcolm Turnbull said the two leaders can bond over their shared
business background. North Korea obviously, a major item on the agenda. Security issues are going to be high to be talked about, particularly
obviously not only with North Korea but with China as well. And economic and trade issues will be there. Australia's trade ministers are already in
the United States. Minister, good to see you for coming in and talking to us tonight. On the trade front, the U.S. vice president's visit to
Australia cleared up the question of the deal over refugees and migrants. That has been cleared up to a large extent. The bad deal seen by the
president's point of view but one that they will stick by. For you, what can be gained on the trade front?
STEVEN CIOBO, AUSTRALIAN TRADE MINISTER: Look, I think it's terrific opportunity for Australia and the United States. We're very focused on
continuing to build the relationship. We've been allies for many decades. We've got a really strong investment, stock in the U.S. as well as American
stock here in Australia. So, there's a terrific opportunity to keep driving trade for both countries. For both countries, the more trade we
have, the more economic growth.
QUEST: Are you going to use this opportunity to get TPP -- I was going to say back on the rails again, but, you know, only a fool believes that the
president will ever put it back on the rails again. Or at least try and get the president back interested in getting some trans-pacific trade deal
going? Or am I just whistling in the wind here?
CIOBO: Well, I mean, look, realistically, we were disappointed with the decision the U.S. took to withdraw from the TPP. It wasn't unexpected.
President Trump made it very clear he was going to be withdrawing from the trans-pacific partnership. From Australia's national perspective, we're
continuing to focus on opportunities to bring the TPP into force. We think there's a lot of benefits for the region, for the 11 countries that remain.
So, I'm focused on trying to build consensus together with New Zealand, Canada, and others for it to still happen.
QUEST: Would you try and encourage the U.S. to reengage on TPP?
CIOBO: I think there's merit to do that. But as I said, I'm also very respectful and mindful of the fact that this administration has made their
position very clear.
QUEST: I need to ask you, on a different area, but, you know, never miss the opportunity when you've got a minister in the chair, Brexit and the
U.K. Obviously, a deal with the U.S. is larger and more significant and probably would take precedence. But are you ready to negotiate with
Britain the moment the U.K. is allowed to negotiate?
CIOBO: Absolutely.
QUEST: Or does the U.K. go to the back of the line?
CIOBO: No, look, absolutely, we're ready to negotiate. We've already started down the path. We've set up a working group between the Australian
government and the U.K. government. I've had a number of meetings with Liam Fox, the U.K. secretary for trade, as well as vice minister Lord
Price. We've had really warm, cordial discussions. And of course, there's a really strong track record there, historical relationship between the
U.K. and Australia which we want to build off.
[16:45:00] QUEST: On this larger question, we've got the Dohar round, I've still got the scars of the Dohar round, which went nowhere. Bilateral
trade deals, TPP is gone, T-PAC probably won't happen. Do you think the era of the large multilateral deal has gone, it simply can't be done?
CIOBO: Multilateral is hard. It's still the holy grail. If we can get an agreement in place among many countries, that's terrific, especially good
for small to medium sized businesses who want to export, because they get one set of rules across the board. They're really hard to do. In terms of
my arsenal, as Australia's trade minister, I'll do bilateral deals, I'll do multilateral deals. I want to get the best deals we can. We've locked
away three really strong and important bilateral trade deals with China, with Korea, and with Japan. I'm looking now at piling up on that with a
trade deal with Indonesia. A very fast growing country, 250 million people, our very near neighbor, as well as putting in place formal
negotiations with the European Union and the U.K. So, a lot happening.
QUEST: If you're coming to New York to meet the president with your prime minister, be prepared for gridlock tomorrow, it will be horrendous in New
York. Minister, good to see you, sir, thank you.
As we continue tonight, the economic forum in Africa under way in South Africa. A big challenge for the continent, sustainable growth. Eleni
Giokos reports.
(BEGIN VIDEOTAPE)
ELENI GIOKOS, CNN AFRICA CORRESPONDENT: This groundbreaking race to energy plants in Cape Town, South Africa, provides a single solution to two
problems. It produces much-needed gas for the city while consuming its unwanted garbage.
EGMONT OTTERMANN, CEO, CLEAN ENERGY AFRICA: We're trying to be a landfill alternative. We take waste from various of sources, bring it in, clean it
up, produce gas, produce fuels.
GIOKOS: This $30 million plant should be fully operational by July. It aims to consume 560 tons of municipal solid waste per day, about 7 percent
of what the city of 6 million produces daily.
DARIUS BOSHOFF, PROJECT ENGINEER, NEW HORIZONS ENERGY: This truck has brought fresh organic waste, to be separated and processed. There's some
fish waste, some packaging. Our process can handle that.
GIOKOS: The traditional destinations for Cape Town's waste are municipal landfills like this one on the other side of the city. It is slowly
reaching capacity, and companies like Waste Smart pay fees to dump here. The local waste disposal company is a shareholder of The Waste to Energy
Project and now supplies the trash for the plant.
NAZIER MARTHINUS, MANAGING DIRECTOR, WASTE-MART: There is a huge saving for us in our operating cost. I estimate it to be between 5 and 8 percent,
at least once we're in full production.
SEBASTIAN: Pickers sort through the debris. What remains is compressed to produce a dense slurry.
MARTHINUS: The organic material is digested into an amorphous brown liquid called digestate that is very rich in nutrients.
SEBASTIAN: The digestate is pumped into huge vats, bacteria is nurtured to produce gas which is cleaned and piped to market.
MARTHINUS: The gas we separate in our plant into product gases, which is a methane-rich gas and a CO2-rich gas.
SEBASTIAN: This company is a leading supplier of gas to the South African Market. The company is a shareholder and has an exclusive deal to sell the
gas produced.
SILVIA SCHOLLENBERGER, HEAD OF MARKETING AND SALES, AFROX: The Cape Town Market is looking for alternatives to its current energy sources. So.
alternatives to heavy fuels, to coal, to LPG, to diesel. This then fits beautifully within that.
SEBASTIAN: There are preliminary plans for similar projects in at least three other cities in South Africa. If these engineers have their way,
there will be more across Africa.
OTTERMANN: It's where we have to get things right. It's our blueprint. It's the first one where we get the formula for building and operating a
plant.
GIOKOS: Eleni Giokos, CNN.
(END VIDEOTAPE)
QUEST: Don't interrupt me. I've told you. YouTube's CEO takes on sexism in Silicon Valley after the break.
[16:50:00] (COMMERCIAL BREAK)
QUEST: Silicon Valley has long faced allegations of sexism. Tech companies can't seem to shake the stereotype. Even one of the most
powerful executives in the country gets interrupted. The YouTube chief executive says that women are a minority in tech, and no one is slow at
reminding them.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNN CORRESPONDENT: Susan, is there a sexism member in Silicon Valley today?
SUSAN WOJCICI, CEO, YOUTUBE: Well, I think, you know, Silicon Valley, there are many different opinions. When you have a majority and minority,
it's a going to be harder for the minority. Even in a culture where people are well meaning, and I think there are many well-meaning, working hard,
trying to make Silicon Valley a diverse place, there are sometimes microaggressions, like? Like people who will just cut you off. And you'll
be talking and then someone will interrupt you. And so that's actually become like a big pet peeve mine. Whenever somebody interrupts me, I'll be
like, wait, I was talking, do not interrupt me. I enjoy it even more when I see them interrupting someone else, I'll be like, wait, she was talking,
don't interrupt her. Sometimes when I do that people will say, oh, thank you, I didn't realize I was doing that. Making people aware is important.
HARLOW: Would you say overall yes, there is a problem in the valley, one you're hopeful is being fixed?
WOJCICI: There's a problem just in the numbers, being underrepresented. We need more women across the board. Until those numbers get fixed, it
will be a harder place to work.
HARLOW: What's the solution?
WOJCICI: This is a solvable problem. I outlined three different steps, which sounds straightforward but I don't think are happening in most
companies. The first one is that it really needs to come from the top. You need the CEO of the company to say, it matters. I think the second
thing is that we need to make sure that you're funding the groups to be able to -- the different diverse groups to be able to have their own
support. So, whether it's like employee resource groups, enabling them to be able to meet to do their off-sites. But then not expecting them to plan
everything. You need them to budget the people and not assume if there's one woman in a group, she's going to be the one that's going to organize
the women's organization, right? It's just not fair. And then the last one I have seen is just providing mentorship. I feel like I've been really
-- I've benefitted from that, there's no question. I've worked incredibly hard in my career. I've been really lucky to be in the right place, made a
lot of great business decisions. But I've also had people at the top of the company who saw potential and invested in me.
(END VIDEOTAPE)
[16:55:00] QUEST: You can download our show as a podcast. It's available from all main providers. You can also listen to the podcast on your way
home, on your way to the bus to work, at CNN.com/podcast.
We will have a Profitable Moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. It is fascinating to see the latest numbers from Facebook. The profits, revenues, are up 49 percent.
Operating margin, bearing in mind the airlines' operating margin is something like in the low digits, this is 41 percent. And they paid an
effective tax rate of 10 percent. What is even more interesting, though, is to watch the speed with which this company, led by "zuck", is moving and
maturing at a pace faster than we've ever seen before. The size and scale of Facebook means it has an importance, a relevance, and a responsibility
in the global economy that perhaps no other company has ever had in such a short period of time. They can no longer go, I see no evil, I hear no
evil. They have to have fact checkers, fake news checkers, sexual predator checkers. They can't avoid it, nor should they, they asked for it, they've
got it. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. We'll do it again tomorrow.
END
