Return to Transcripts main page

Quest Means Business

U.S. House Passes Bill to Replace Obamacare; Trump: I'm so Confident Health Care Bill Passes Senate; Former U.S. President Obama Backs Macron; Victorious Trump Heading to New York City; Prince Philip to Step Away from Public Life. Aired 4-5p ET

Aired May 04, 2017 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[16:00:10] RICHARD QUEST, CNN ANCHOR: Good evening. A slightly different version -- edition of QUEST MEANS BUSINESS tonight as we get into the grips

with the massive political changes taking place, a much-needed political shot in the arm today for President Donald Trump as the Republican majority

in the House managed to pass a bill that would repeal and replace President Obama's signature health care law, and it passed the House. Now, it's only

the first part of a long process, but it is President Trump's first sizable legislative victory. Six weeks ago, the first attempt to get rid of

Obamacare failed without even coming up for a vote.

The speaker of the House decided it was simply too risky. However, this time it did pass, as you can see. Now, it was passed by a narrow margin,

212-217 Republicans voted in favor. Just one more than the minimum need. Not a single Democrat joined them. The bill goes to the Senate, where it

faces an extremely difficult path. Over the course of this program we'll be looking at this from different sides. Not only what this bill is and

why it is so significant, but also what it tells us about President Trump's presidency so far. Now, listen to President Trump who spoke a short time

ago, talking about this bill. He says he's confident that even though controversial, it will pass the Senate.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: I went through two years of campaigning, and I'm telling you, no matter where I went, people were suffering so badly

with the ravages of Obamacare. Your premiums will start to come down. We'll pass this through the Senate, I feel so confident. When it comes to

deductibles, they were so ridiculous that nobody got to use their current plan. This non-existent plan that I heard so many wonderful things about.

I don't think you'll hear so much right now. The insurance companies are fleeing. It's been a catastrophe. This is a great plan. I actually think

it will get even better. Make no mistake, this is a repeal and a replace of Obamacare. Make no mistake about it.

(END VIDEO CLIP)

QUEST: And with those words ringing in everyone's ears, a repeal and a replace of Obamacare, the signature legislation of eight years of the Obama

administration. Not surprisingly, Democrats were livid. After the vote, one Democrat insisted the bill was not what the congress wanted.

(BEGIN VIDEO CLIP)

STENY HOYER, U.S. HOUSE DEMOCRAT: The majority of the House of representatives was opposed to this bill. Unfortunately, a few of them did

not vote against this bill. You know that. And I know that. That is why it took so long and three or four trips to the well to get enough to drink

from the well.

(END VIDEO CLIP)

QUEST: On Capitol Hill, Manu Raju, our senior congressional reporter, whichever way you slice this cake, Manu, this is a sizable political win

for Donald Trump tonight.

MANU RAJU, CNN SENIOR CONGRESSIONAL REPORTER: No question, Richard. The question is, is it a short-lived win or something that is going to redefine

not just his presidency but in the country, reshaping one fifth of the American economy if it were to become law? What we do know, Richard, this

will be a very difficult test for Donald Trump in the United States Senate where there is not only a narrow Republican majority but also the rules of

the Senate will prohibit some of the provisions that are in this bill from actually passing on a party line vote, meaning they'll need to get

Democrats' support to actually pass this exact bill, which we know is not going to happen.

[16:05:00] That means, Richard, there need to be sizable changes, and can they make sizable changes and keep their party together at the same time as

keeping the House Republicans together at the end of the process? A lot of questions ahead with this bill going forward.

QUEST: Without getting too much in the weeds for international viewers on the minutia, but give us some of the issues that the members will balk at.

RAJU: They got conservatives on board by waiving covering people with preexisting conditions, this gives states the option to cover people with

those types of conditions. That is something that some Republicans are very concerned about. And also, Richard, this bill has not actually had a

formal cost estimate by the nonpartisan congressional budget office. That is something that a lot of people are criticizing House Republicans for,

pushing this bill without any sort of estimate. When that estimate comes out and we see how many people it does not cover anymore, how will Senate

Republicans change the bill? That's a big question going forward.

QUEST: Even allowing, Manu, for the changes that will take place, that may water down the bill that the House passed, the President is right when he

said that the process of repeal and replace of Obamacare has begun, because whatever comes out of the Senate, Obamacare is history.

RAJU: No question. But they of course still have to reach an agreement with the House. If they change the bill in the Senate, and that's still

going to be very difficult, but no question about it, this is a very significant first step into repealing and replacing Obamacare, something

Republicans have failed to do for the past seven years, have failed to do through the courts, their first actual tangible victory. The question is

can they make it last. We don't know that yet.

QUEST: Manu, thank you, we'll talk many more times on this, you've got your work cut out for you as it goes to the Senate, I hope you weren't

planning to go out for any meals until then. Thank you.

RAJU: Thank you, Richard.

QUEST: Listen closely to the Republicans as the bill comes to those last few moments before the clock runs out.

So the Democrats chanting, "no, no, hey, goodbye," to their Republican colleagues, perhaps a reference to the fact how the voters may rebel

against them once they find out what's in or not in this bill. Gloria Borger in Washington, Gloria, I need you to help us understand just how

much of a political earthquake took place, if it did, this afternoon.

GLORIA BORGER, CNN POLITICAL ANALYST: Well, it depends who you talk to about this. I've been talking to a Republican political consultant all day

who said to me, if the Republicans did not win today, they could kiss control of the House of representatives goodbye, that their base expected

them to repeal and replace Obamacare, issue number one during the campaign. They all campaigned on it. He said to me, if we don't do it today, we're

gone. We're not going to keep control of the House. On the other hand, you have Democrats taking a look at the vulnerable Republicans. Remember,

there are 23 Republicans in the House who won in districts that Hillary Clinton won. And they're taking a look at those Republicans and saying,

you know what, we can defeat you. 14 of those Republicans voted with the President today. So, they're taking a look at it and saying, we can use

this issue against you, which is why they were singing to the Republicans on the floor.

QUEST: Has today, this idea of universal health care in the United States, because viewers around the world, they're watching, who don't really want

to get into the minutia of preexisting and waivers and that sort of stuff. But on the big philosophical question, has universal health care died a

death today in the United States?

[16:10:00] BORGER: Yes, I think it has. The notion that the government, the government should be the one that is in the end responsible for helping

you out, for helping you out with your preexisting condition, for helping you out if you don't have money and they'll help you subsidize your health

care or they'll require small businesses to pay for your health care or to help pay for your health care, that is what is out of the window. The

government's role in making sure that those who can least forward it get some help on health care, I think that flew out the window today.

QUEST: And for Donald Trump, let's face it, I mean, you may have heard Manu Raju.

BORGER: I did.

QUEST: It's a victory for Donald Trump. But more than that, it's a testament to his perseverance, negotiating skill, art of the deal, whatever

you want to call it, he nearly lost the first round, put the Senate to one side, but he's lived to fight another day.

BORGER: He has. And you do have to give him credit for it. I mean, whatever you think of President Obama, he did not do this kind of

negotiating constantly. Donald Trump kept going back to people, kept saying, what is it that we need. I'm telling you, Donald Trump is not the

man who wrote the final version of this. And by the way, we haven't seen it and haven't read it. But he didn't negotiate on the issues itself,

because he's not that kind of negotiator. But what he did was kept going back to members and saying, what do we need to do, and then had other

people work it out. He worked the phones, as did the vice president. He brought people to the White House, as did Reince Priebus, his chief of

staff. Don't forget, they don't have a lot of experience with this in the White House. It took him a time of losing to try and figure it out and do

it the right way.

QUEST: President emboldened now, next is tax reform. They always said they had to do this first, although we see the tax cuts in this bill pushed

off into the future. Does that now make Donald Trump look a little more invincible rather than invulnerable?

BORGER: Nothing succeeds like success, right?

QUEST: Exactly.

BORGER: So, yes, it does help him out tremendously. Again, we have to see what happens in the Senate. So, Senate doesn't like the House bill. And

Republicans in the Senate disagree with each other as much as Republicans in the House disagreed with each other. But is a win always better than a

loss? Absolutely. And again, we're going to have to see what this costs. We're going to have to see whether it adds to the deficit. We don't even

know those numbers, because tax reform is going to cost an awful lot of money, you know that better than I do.

QUEST: Details, Ms. Borger, details.

BORGER: At some point some conservative Republican is going to raise his hand and say, uh, wait a minute, there's something called the deficit in

this country and we have to start thinking that.

QUEST: Thank you for putting it into perspective, Gloria, thank you.

Many people outside the United States, you just heard me talking with Gloria Borger on the question of is this the end of universal health care

provided by the government or at least monitored and legislated by the government in the United States. I want you to look at this, because this

really goes to the issue. It's a question of the percentage of population covered by government health insurance as in OECD countries. And one clear

-- let's just go through this. 90 to 100 percent of countries, let's take that one out, there you go. You'll see this is 90 to 100 percent of

countries. Obviously, you've got modified European Union, you've got Canada, you've got Mexico. Now let's look at 50 to 90 percent. 50 to 90

percent. You're starting to get -- Chile is next, with 76 percent as well. And then Germany with 89 percent.

So, Germany, which has a completely different system, but then if you go to zero to 50 percent, the United States. It is the only major OECD country

that has a lower percentage of population covered by some shape or form, by health insurance. Now, the markets. Through all of this -- look, I was on

the floor of the stock exchange for "quest express" earlier. We hope you were with us. We showed you around 12 minutes past 12:00, the market

actually fell, quarter past 12:00, the market went down by 100 points. And we have no idea why.

[16:15:00] Some people said it was health stocks, because of what they were hearing. I don't think you can actually say that to be true necessarily,

because if it was health stocks, the recovery that came back very swiftly. Health stocks were down. There's universal health care. Other companies,

HCA holdings was up. We've no idea about that blip. Back do the Dow, and you'll see once again what we've talked about. A very tight range.

Remember, for the last a couple of days, we were still only down six points at the close. Paul La Monica, this tight range we talked about, guru La

Monica, do we know why that hundred-point fall happened? Will you give me health care stocks?

PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: No, health care stocks finished at their highs for the day after the vote. I think if you're

going to try and find an explanation, it might be oil. Crude prices did slip, that led to Exxon and Chevron, two Dow components, falling. My guess

is oil is probably the culprit.

QUEST: One of those things. Knee-jerk.

LA MONICA: In this modern era, the Dow down a hundred points is not what it used to be. It was fairly precipitous, then we had a sharp rebound.

QUEST: We're in this range. The market goes up 20, down 20. We're not seeing triple digits, which is just as well.

LA MONICA: Yes, it's nice to have some stability, a steady as she goes market. The jury is out on does this health care bill get through the

Senate. It got through the House, that's all well and good. But we have a jobs report also tomorrow. And a lot of people are maybe a little nervous

to see if we can get a better number than last time, where job growth was a littlle bit subpar.

QUEST: For viewers who may wish to make a note, CNNMoney's consensus is what?

LA MONICA: It is 190,000 jobs added last month. Unemployment rate staying at around 4.5 percent. Wage growth making ticking up a little bit too.

QUEST: So, a number better than 190, good. A number much worse than 190, bad.

LA MONICA: Definitely. And we hope to see some higher as well.

QUEST: Good to see you, sir, thank you very much. And Paul was giving the idea of oil being one of the reasons. Well, are the markets were weighed

down by the sudden slump in oil. Brent crude has fallen 5 percent, lowest number since November. With concerns about rising global oil output and

stockpiles, Alan Valdez is at the New York stock exchange. Alan, you joined me on "QUEST EXPRESS" on the floor when it was just at its peak or

low trough, as you might say, of 100 points. You said it was oil. Do you still maintain that was the reason?

ALAN VALDEZ, SENIOR PARTNER, SILVERBEAR CAPITAL: Yes, but you know, one of the reasons for it, there was a rumor later in the day, there was big

margin selling going on, big liquidations going on. That was at the time we saw it really tank. I think that was the culprit, that rumor that there

were liquidations. People were panicking, margin calls, that's it. The show's over for the day.

QUEST: On the political front, how important is -- I mean, politically, Gloria Borger and others were talking about it. From the stock market's

point of view, from investors' point of view, how significant is today's victory by the president on health care? Because it presages an ability to

get the rest of his agenda through congress.

VALDEZ; Exactly. This could get tax relief rolling. If he had stalled today on the health care, that would have pushed tax relief off to maybe

past the summer. I think in the long run it was very important for that one reason.

QUEST: Alan, good to see you, thank you, on both programs, the continuity, taking us through the day.

Three days before the second round of French elections. Stocks in Europe surged. We'll be in Paris. When we come back, it's QUEST MEANS BUSINESS.

[16:20:00] (COMMERCIAL BREAK)

QUEST: One more trading day before the weekend and the French presidential election. Stocks have hit their highest in almost a decade. Investors are

more and more confident that the centrist Emmanuel Macron will trounce Marine Le Pen. And he will become the next president and the youngest

president of France. Now, the share index has risen over the past month. This is very impressive. It's a steady -- you know, you get this sort of

unease early on, and another takeoff over there, which sets the stage. As long as the polls have consistently shown Macron with a double-digit lead

over his rival, then this is what we have seen and one would expect, if this is the way it plays out on Sunday, perhaps even more gains next week.

The euro also rallied because obviously Marine Le Pen had pretty much promised to take France out of the euro. The debate on the Wednesday

night, she struggled to defend her proposal to ditch the single currency, and that will be seen as a great benefit to the euro in terms of its value.

There was a very unusual development. The former U.S. President Barack Obama says he is supporting he man Emmanuel Macron. He did a taped message

to French voters in which he expresses his admiration for Macron.

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER U.S. PRESIDENT: I want my friends in France to know how much I am rooting for your success. Because of how important this

election is, I also want you to know that I am supporting Emmanuel Macron to lead you forward. Viva le France.

(END VIDEO CLIP)

QUEST: We should be grateful that that was the only French he attempted. If I had had a go at it, it would have been even worse. What are they

making of that in France tonight?

MELISSA BELL, CNN PARIS CORRESPONDENT: Oh, it's attracting a great deal of attention, Richard, an unusual attention and one that for the Macron camp

is very welcome. This was a candidate who has spoken, reached out to Barack Obama, and used that video to boost his campaign and credentials.

Emmanuel Macron here in France has come to win the first round and become the favorite to win the second round on Sunday. But all that time ago,

when he launched this political adventure, most improbable political adventure, nobody believed he could do it. You heard Barack Obama there

giving his outright support to Emmanuel Macron. A couple of weeks ago we had tweets from Donald Trump, this idea that the current and former

president are keeping a close eye on this election as a sort of continuation on the battle of ideas in the United States only last year.

QUEST: I'm going to jump ahead of ourselves, Melissa. I was talking to some friends in France over the past couple of days. What they all say is,

all right, Macron wins the vote, he wins the presidency on Sunday, maybe, maybe not, but probably will. But that's when his problems begin, because

without a political party of either left or right, and with the national assembly elections coming up, he really has no natural constituency.

BELL: That's right, Richard. This is a man who has come into politics and in a sense has surfed that wave of a desire for change by saying, I am

something completely different, the left and right have gone but I'm an answer to the menace facing France.

[16:25:00] His problem if he wins is he doesn't have a parliamentary majority. He doesn't have a parliamentary anything. He doesn't have the

kind of political structure around him. And this is a country that's been run by political elites that have recycled themselves over decades, so he's

starting from scratch in a country that has simply not been governed this way before. What he's betting on is the fact that if he wins, that

momentum will allow him to get his MPs into the French parliament. He's fielding MPs in all the districts. Will he win a majority? The question

of how he will govern will be a serious one for him going ahead.

QUEST: But the French voters, stuck between the devil and the deep blue sea on Sunday, are preferring that option to, you know, some would simply

say the persona non-grata of Marine Le Pen. But either way, they end up with an uncertain future.

BELL: Either way, France is in for a massive change in the way its political system is run, in the way its economy is governed. We are

stepping into the unknown. Now, you're right, there is this sense that Emmanuel Macron is doing much better than Marine Le Pen in the polls. Last

night in the debate was an extraordinary moment where he seemed to nail it in a way she didn't, on questions like the economy, on questions with an

aggression that we hadn't seen in him before. The French were much more convinced by him than by Marine Le Pen. But it's an unknown, and the

people running around him are doing so reluctantly. This is the man responsible for seeing off the left and the right from the French people

and those are the very people who he will be relying on.

QUEST: An exciting weekend, Melissa. Tomorrow I'll be in London and we'll talk. Melissa Bell.

This is really turning into a superb election, we've talked about this many times on this program. There were gains in London and frankly further

Paris. A chief executive of Randgold Resources told me the company had a solid quarter. I asked Mark Bristow what changed after all the

difficulties that Randgold faced in 2016.

MARK BRISTOW, CEO, RANDGOLD RESOURCES: It's the best quarter we've had and right on the run rate for guidance straight out the block. A good solid

quarter. We delivered our 52 percent increase in dividend. We covered that dividend with the cash flow from the last three months, the first

quarter cash flow. We still got more than 500 million in the bank. And no debt. So, you know, a really solid, steady quarter. It gives everyone

comfort for the 2017 results.

QUEST: And interestingly, you put a lot of emphasis in this quarter on the replacement of reserves. And obviously you want to replace reserves at a

higher grade. This is not just about digging deeper into existing mines, is it? This is about the exploration of completely new territory.

BRISTOW: Yes. And I think key, Richard, a lot of people, this industry is very focused on ounces produced and ounces in the reserves. But very

people look at the quality of those ounces. And again, exactly as you have picked up, those ounces that we replaced this last year were a better

quality.

QUEST: The geopolitical situation in many of the countries where you are, the DRC, for example, it still remains exceptionally challenging for you.

BRISTOW: Yes, Richard. That's absolutely right. But compared to what? The challenges might not be the same, but the equally challenging

scenarios, whether it's the north Americas or Europe. The difference is, we are an elephant country. Our focus is on world class assets which

deliver real profitability that support the treasuries of our host country.

[16:30:00] And in 21 years we've been able to deliver not only, you know, a better value than most to our shareholders, but also to the host countries

in which we operate.

QUEST: As we continue tonight, Donald Trump and Malcolm Turnbull are set to meet shortly. The U.S. President and the Australian Prime Minister.

They'll repair relations after the phone call that the president described as the worst one he's made so far.

(COMMERCIAL BREAK)

QUEST: I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. Donald Trump is taking his health care victory to New York. He'll

meet with the Australian Prime Minister. I should say he was meant to meet with the Australian Prime Minister. Exactly what the status of that

meeting is, is not entirely clear. I'll get it together, you know what I mean.

Prince Phillip calls himself the world's most experienced plaque "un- veiler." But on this network, the news always comes first.

House Republicans have not only passed a bill that would make dramatic changes to the United States health care system, it was 217 votes,

approving the measure to repeal and replace Obamacare. It goes to the Senate now where it faces some sizable challenges. President Trump says

he's confident it will succeed.

The Paris prosecutor's office is investigating a complaint by the French presidential candidate Emmanuel Macron. He claims rival Marine Le Pen has

been spreading lies about him to influence the election. They had a televised debate on Wednesday. He accused her of having an offshore

account in the Bahamas, something he denies.

Members of Syria's armed opposition are rejecting an agreement set to create four de-escalation zones in the country. State media is reporting

that Russia, Turkey, and Iran have agreed to create the zones effort in to resolve the ongoing conflict. The opposition says Syria should not be

partitioned and a nationwide cease-fire should be observed.

Donald Trump is scheduled to return to New York for the first time as president. According to his friends, his 107-day absence is the longest

period he's ever spent outside of New York. The president made his name and fortune in the city. It won't be an exactly warm welcome home. In

anticipation, barricades are in place at Trump tower, where protesters plan to gather. He's not staying at Trump tower, he's going to his golf club

where he's expected to stay tonight. These are live pictures of the protesters already gathering. At the same time, Donald Trump was supposed

to have a meeting with the Australian Prime Minister. And then they were going to have dinner together on the decommissioned aircraft carrier "the

intrepid." Jeff Zeleny joins me. I'm sorry. I'm excited at the prospect. They're having dinner, but what happened to the meeting?

[16:35:00] JEFF ZELENY, CNN SENIOR WHITE HOUSE CORRESPONDENT: They were supposed to have a bilateral meeting this afternoon to discuss things for

an hour or so. That meeting, we are told now, is going to be squeezed in right before the dinner, so a very abbreviated meeting between these two

leaders.

QUEST: Is the administration aware of how -- I was going to say insulting or at least how peeved the Australians might be? Malcolm Turnbull has

flown 28 hours to see Donald Trump. He didn't come just for the ca canapes.

ZELENY: It could be seen as a Trump, especially since their phone call in the first week of the Trump presidency didn't go so well, over the refugees

that the Obama administration agreed to welcome here. All that has been smoothed over somewhat. But tonight was supposed to be the time to really

become allies again. We'll see. I'm told by the Australian government officials that they understand this is an important political moment. But

it still looks like a snub.

QUEST: The health care victory, give us your assessment tonight.

ZELENY: It's the biggest achievement so far legislatively this president has had so far. But again, it is only half of the way there. The U.S.

House passed this bill. The Senate has to pass the bill. They will make changes to it. And then the House will have to pass it again before the

president signs it. But look, it is a Republican promise for years to repeal and replace Obamacare. But President Trump made a promise today too

in the rose garden when he was taking that victory lap.

[16:40:00] He said, your premiums will go down, your deductibles will go down. It sounds like when president Obama said you can keep your doctor,

that didn't turn out so well. Now he owns this. Today, Obamacare became Trump-care.

QUEST: The CBO, congressional budget office, suggests that premiums go up in the short term before ten years out when they start to fall. We showed

it on the screen earlier, the big issue is that as of tonight, the United States once again becomes the only developed country in the OECD that

doesn't have a fully functioning universal government health care system.

ZELENY: This will be even reversing that more. This is taking away the affordable care act under president Obama. So, it is one of the reasons

that health care premiums here are more expensive than most anywhere else. It is not what this Republican party wants to do.

QUEST: His next, is it tax reform?

ZELENY: Tax reform is next. We'll see if he gets that done. The biggest thing, the climate accord. Will this president, what will he do with

Paris, will he stay in, will he withdraw?

QUEST: What does his daughter want him to do?

ZELENY: She wants him to stay. Steve Bannon wants him to go. Therein lies the tension.

QUEST: Great to see you, Jeff. Tension is what we like.

President Trump and the Australian Prime Minister will meet 3 months after the telephone call that was cut short and that President Trump called his

worst so far. We go to Sydney. I need to know how the Trump visit is being viewed in Australia.

(BEGIN VIDEOTAPE)

DAVID KOCH, HOST, SEVEN NETWORK'S "SUNRISE": The United States is a long- term ally of ours. I suppose Malcolm Turnbull got Donald Trump at his obnoxious worst when that call came through. He seemed to get under his

skin. And certainly, the two leaders coming together is aimed at really smoothing relations. This trip is all about trade and it's about tyrants.

Unless they get on the same page on those issues, it is a real concern for this country.

QUEST: The other issue of course is that whether it's North Korea, which now seems to be suggesting it's got its missiles pointed already at

Australia, or it is the Philippines, which is in the bailiwick of Southeast Asia, or it is China, I mean, Australia, is you say thrall I can't in a

position of having to decide which side it is on? Or is the decision obvious, it's just a matter of how you go about it?

KOCH: Look, it's obvious but it's how you go about it. Yes, America is absolutely crucial to the stability of this region. But remember, China

takes a third of Australia's exports. 1.5 million mainland Chinese come each year, the biggest source of tourism in Australia. That's the reason

we've had 26 executive years of positive economic growth. An extraordinary purple patch of economic prosperity here in Australia because of China.

But then on the other side of it, you know, it is the security umbrella of the United States that we continue to be under and want to be under.

That's the tricky part. That's the diplomacy formal come Turner and Julie Bishop as well.

QUEST: Julie Bishop is well-versed in these matters. Malcolm Turnbull has been around longer than you and I, which is saying something. So, to that

extent, these are two sophisticated, experienced politicians. But they are dealing with the mercurial and the unknown in Donald Trump.

KOCH: That's right. And that's why this face-to-face meeting is just so important. You saw it with president xi when he visited, what is it the,

the southern White House in Florida.

QUEST: The winter White House.

[16:45:00] KOCH: The winter White House. They built a personal rapport. That seems to be Donald Trump's M.O., he's very distant, he seems to be

suspicious with anyone he doesn't know, then have a few beers with him and a round of golf and they become first base friends. Hopefully Malcolm

Turnbull builds that sort of link with Donald Trump on this trip.

(END VIDEOTAPE)

QUEST: Tomorrow, CNN launches a new live debate show with Max Foster, "CNN Talk." it's tackling matters of interest, not just showing the different

ways you can watch, not only on the box, but it will be streamed live on Facebook.com/CNNi. Noon U.K., 1:00 central Europe, 7:00 a.m. in the east

coast of the Americas. And this is "QUEST MEANS BUSINESS."

(COMMERCIAL BREAK)

QUEST: South Africa's court has ordered president Jacob Zuma to explain why he fired the finance minister last month. The decision to get rid of

Gordhan sparked public protests and a downgrade of the country's credit score. Businesses are having to find ways to stay competitive among this

turmoil. Eleni Giokos has met with South Africans whose businesses are thriving as "Africa Looks Forward."

(BEGIN VIDEOTAPE)

ELENI GIOKOS: When thrill seekers take a leap of faith, they're dependent on this moment going well. What an incredible sight, watching these sky

divers, people with major appetite for risk. The reality is what's keeping them safe is fabric that is made right here in South Africa.

IAN DOUGLAS, PARACHUTE TECHNICIAN, AERODYNE RESEARCH: The fabric and the lines are manufactured in South Africa.

GIOKOS: The parachutes are creating here by Aerodyne Research. To source the material, you don't have to go far. Thousands of strands of yarn are

woven together to make the parachute fabrics and more at Gelvenor Textiles.

DICKY COETZEE, CEO, GELVENOR TEXTILES: We produce approximately 20 million square meters of fabric in a year, if you take the distance between Durbin

and Johannesburg as 600 kilometers, we can do that return trip more than a thousand times every month.

GIOKOS: Besides parachute fabrics, they also specialize in bulletproof and fire retardment materials. Gelvenor's CEO says the company has grown by

over 60 percent in 5 years, that's a success story in an industry that has been decimated by competition from China.

[16:50:00] ALAN MUKOKI, CEO, SACCI: 60 percent of the problem has been Chinese manufacturers able to sell goods in South Africa much cheaper, even

after you accommodate for the exchange rate.

GIOKOS: South Africa's textile industry employs more than 200,00 people in 2001, that number has since fallen to 80,000 people. Gelvenor's targeted

approach helped them beat the odds.

COETZEE: We recognized 20 years ago already that diversification into specialty products is where we need to be. You have to keep on identifying

where future niches are coming from and can't just keep on making the same.

GIOKOS: The company now exports to 27 countries around the world with its biggest market being Russia and the United States.

TRISTON PARAMANAND, GM, AERODYNE RESEARCH: The fabrics that comes from Gelvenor.

GIOKOS: The folks at Aerodyne Research are also having success with the homegrown materials. This is exported to countries around the world,

specifically to the United States.

PARAMANAND: Yes. To the United States, and all over the world.

GIOKOS: This South African made parachute will continue to make it to the skies around the world, thriving in a turbulent industry. Eleni Giokos,

CNN, South Africa.

(END VIDEOTAPE)

QUEST: All rather risky stuff, if you ask me, jumping out of planes, even with a parachute. Now, I was in Nigeria's economic center, Lagos, a few

days ago. If you missed our special programs, certainly the highlights can be seen this weekend. It is Nigeria at a crossroads and it first airs at

10:30 Friday morning in London and repeats throughout the weekend. You'll be able to find it somewhere. Maybe online.

Coming up, his royal highness, the Duke of Edinburgh, Prince Phillip, is taking a step back from public life, poor man has been doing it for 70

years, he is entitled to a bit of a rest, he is 95. After the break.

[16:55:00] (COMMERCIAL BREAK)

QUEST: By his own admission, the world's most experienced plaque "un- veiler." Prince Phillip announced on Thursday he would be retiring from public life in September. The queen's husband is 95 years old and appears

to be taking it all in good humor today. Long serving as royal consort, he's racked up 637 solo overseas visits and 20,000 solo engagements.

Richard Fitzwilliam joins me from London. Richard, at the end of the day, you know, he is 95, it's to be expected. It's an era that's moved on.

RICHARD FITZWILLIAM, ROYAL COMMENTATOR: Absolutely. An era -- you put your finger on it. He's amazing. He's a man of steel, a constitution

that's absolutely extraordinary. His deep commitment to the queen, to the monarchy, but all these interests that make him such a such a fascinating

figure. Intellectually agile. He's written books.

QUEST: Why is he doing it?

FITZWILLIAM: I think it's a sensible precaution. He's almost 96. He knows that he would be slowing down. I think he wants to concentrate on

some of the things he enjoys. I don't think we're necessarily going to see that much less of him. At least that's what I'm opposing. The 780, 780

organizations and institutions he's attached to, other members of the royal family will step in and do events for them. You know, you get state

visits, he'll be on the balcony.

QUEST: Will he take part, for instance, in the state opening of parliament? I know they've left themselves a get out of jail free clause

by saying he'll do many of these things. When president Trump visits London, will he be in the carriage?

FITZWILLIAM: I bet that he would do that. I'm sure the queen would appreciate it. I certainly think that somebody like president Trump, the

fact that he will appear less will give when he appears an extra cache. And perhaps people will talk a little bit less about he's the world's

foremost proponent of putting his foot in it verbally, he likes doing that. People will also think of the things he's achieved, which is extraordinary.

QUEST: I want to jump in quickly. If the Duke of Edinburgh retires from public life at 95, the queen is 90 or so, what does this mean about her

ability to say, I'm retiring from public life? Because, you know, otherwise she has to keep going `til the end.

FITZWILLIAM: I think that that is what she intends to do. Because in South Africa, when she was 21, in 1947, she said that she would serve her

whole life. She's done so brilliantly. That is the intention. And there's no intention to scale down what the queen is actually doing. But

the actual activities themselves are being balanced very carefully, given the fact that of course she's commemorated her sapphire jubilee. And of

course, we've got the platinum wedding anniversary to look forward to, Prince Phillip marrying Princess Elizabeth in 1947, Churchill calling it a

flash of color along the hard road we had to travel, that's post-war, and 70 years later, a remarkable royal couple, one for the history books.

QUEST: Good to talk to, as always, thank you.

Our podcast is available from all the main providers including iTunes. Listen to it all at CNN.com/podcast. I will have a Profitable Moment after

the break.

(COMMERCIAL BREAK)

QUEST: Tonight's Profitable Moment. He describes himself as the world's most experienced plaque "un-veiler." A reference by his royal highness the

Duke of Edinburgh, Prince Phillip. More than 600 solo overseas tours and on the part of years of walking two or three paces behind her majesty the

queen. Prince Phillip, whatever you may think of the gaffes and his putting his foot in it and the inopportune moments and the undiplomatic

comments he said, he has performed his duty as seen by him and the queen in an exemplary fashion for seven decades. Today's announcement that he's

retiring from public life is a moment in history, the passing of an era that saw duty, that also was mixed with undiplomatic comments. The man was

his own man at home. He ran the royal Household. Even though he was second fiddle to his wife. And that's QUEST MEANS BUSINESS for tonight.

I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable. We'll do it again tomorrow from London.

END