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Quest Means Business
Ocado Lands A Major Deal With Kroger To Enter The United States; Red Stones Have Won First Place In The Battle For CBS; Donald Trump Has Hit Back At Europe After Comments From The E.U. Council President, Donald Tusk This Week; Preparations For The Royal Wedding Are Well And Truly Underway; Ford Is Due To Restart Production Of Its Most Popular Vehicle On Friday; Trump: Nothing Has Changed on North Korea; Ebola Outbreak in Congo Spreads to Large City; OneSpace Launches China's First Private Rocket; Kilauea Volcano Explodes in Huge Ash Plume; Senate Confirms Gina Haspel as New CIA Director; Judge Rules Against CBS in Control Dispute; Harry and Meghan Inspire T.V. Movie; Royal Wedding to be Screened in U.S. Cinemas; Kenyan Hotel Charges $10k to Watch Royal Wedding on T.V.; Businesses Cash in as U.S. Lifts Sports Betting Ban; U.K. to Cut Maximum Stake on Fixed Odds Betting Machines; U.S. Markets End the Day Slightly Lower. Aired 4-5p ET
Aired May 17, 2018 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN HOST: That's the bell ringing on Wall Street. Dow Jones Industrials off a minor amount. We will show you the numbers in just
a moment. Time for the gavel. Hit it. It's a bit hard. Here we go, oh, the winners take -- there we go, one, two and the gavel -- trading is over.
It is Thursday, it is May 17th.
Tonight, another transatlantic coming together. Ocado lands a major deal with Kroger to enter the United States.
The Red Stones have won first place in the battle for CBS and a Royal Wedding takes place, as you know. Well, we're a business program, so we
will count the cost from the big stuff to the froth.
I am Richard Quest, live from Royal Windsor, where of course, I mean, business.
Good evening, tonight from Windsor where as you are aware, we are gathered for a marriage. One that unites the United Kingdom with the United States.
The transatlantic special relationship that drags an old institution into the 21st Century.
No, not that over there, we'll be talking about what's going to happen there. We are talking about that other transatlantic marriage announced
today. Kroger's deal with Ocado.
Kroger is an American supermarket that has very little to do with the Royal Family, at least as far as we know, but they are walking down the
supermarket aisle with Ocado, the British online retailer.
Kroger will now start using Ocado's specialist technology, things like automated warehouse and deliveries. It sent Ocado shares up 40%. It's all
part of the strategy for Kroger to keep up with Amazon and Walmart who are opening the online and their new space.
Now, remember Walmart -- let's continue the analogy of transatlantic marriages, Walmart was married to ASDA in the UK before they sold that to
Sainsbury's last month. That's not a divorce, more a trial separation.
So, thank you. Clare Sebastian is in New York. The Kroger deal with Ocado, those from us of course from the UK are well familiar with the
folding with Waitrose and Ocado deliverers, and this is quite a game changer that is a major US grocer is looking to a UK company for technology
and distribution.
CLARE SEBASTIAN, CNN CORRESPONDENT: Yes, this is a really big deal, Richard, it gives kind of both companies a really -- a big opportunity
here. Kroger has the scale, it is a 135-year-old company with 2,800 across the US. One of the biggest grocers in the US.
But it's really like many of its rivals who have been struggling to get into the online grocer space. They have been trying to ramp up their
digital offerings. They have been trying things like Click and Collect, but they really needed a partner to kind of supercharge this and what Ocado
has is this technology, these warehouses with robots, with AI and things like that, and all of the kind of end to end technology that you need from
the apps that you can use to purchase things to the technology that organizes deliveries and logistics.
It's not an advantage in this climate to just be a grocery company, you've got to be a logistics company if you are going to thrive in e-commerce.
QUEST: So, I remember the start of Ocado, and how did they get so good at what they do?
SEBASTIAN: This is all they do, Richard. They only do online grocery retail. That's what they have been doing for the last 18 years, they have
their own kind of online supermarket where they sell their own brand products and Waitrose products as well, which has been their partner from
the beginning.
But unlike many others who do the brick and mortar and the online, they only do this. And they have become a leader in this market. It's a very
difficult business. It's wide open still in the US, even Amazon hasn't cracked it yet. It involves things like cold storage, like the
difficulties of how to pack groceries so they don't squash each other even.
So, it's very difficult and I think bringing them in really will give Kroger a bit of a boost in this.
QUEST: And if we look at the Walmart deal, the Walmart -- I mean, it was announced some weeks ago, but it is part of the same -- if you like,
architecture of change. Walmart sold its ASDA subsidiary into a new joint venture that will be run by Sainsbury's. Walmart keeps part of -- was this
Walmart running up the white flag?
SEBASTIAN: Well, it's a bit of a refocus for Walmart. They are not actually completely selling out. As you say, they maintain 42% of the
joint venture of ASDA and Sainsbury's. This seemingly of course -- that it goes through the regulator and they get some cash in return.
But what we're looking at here, Richard is the importance of scale when it comes to grocery. This is a low margin business at the best, besides
adding delivery to add another layer of cost to those low margins. So, having scale is crucially important and I think that's what one of the
motives behind that...
[16:05:16]
SEBASTIAN: ... Walmart deal.
QUEST: Clare Sebastian, thank you. Ocado shares were up some 43 percent and that was the mood in the market, now (inaudible) European shares closed
fair as the numbers show all the markets were up and it was energy shares that rose, surprisingly when you think that Brent went over $80.00 a
barrel. We will talk about that later in the program.
Donald Trump has hit back at Europe after comments from the E.U. Council President, Donald Tusk this week. The President of the Union criticized
the US foreign policy saying, "With friends like that, who needs enemies." A few moments ago, Donald Trump said, he had complaints of his own.
(START VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: So, we lost $151 billion last year dealing with the European Union, so they can call me all sorts of
names and if I were them, I would call me names also because it's not going to happen any longer.
(END VIDEO CLIP)
QUEST: Donald Trump -- we will talk more about his comments later in the program. The preparations for the Royal Wedding are well and truly
underway.
You can't beat a brass band, a military brass band. It doesn't get much better than that. And the residents and tourists of Windsor got a taste of
what they will see this weekend. There you have the House of Cavalry, the Irish Guards will be playing along the route as well. The troops march
through the streets rehearsing their various roles. Key figures were in place, Prince Harry and Meghan Markle arrive arrived in Windsor at Windsor
Castle earlier in the day.
There's one person missing of course on that -- Meghan Markle today confirmed her father will not attend the wedding.
Joining me now is our Royal expert, Victoria Arbiter. Good to see you.
VICTORIA ARBITER, CNN ROYAL CORRESPONDENT: Good to see you. I love this band stuff.
QUEST: Isn't it wonderful.
ARBITER: Yes, I was up on Castle Hill today and I watched them coming up the hill and it was the first time, I really felt the sense of
anticipation.
QUEST: Now, let's talk about that anticipation because we know that the bride's mother, Doria Reglan is here. The father we know confirmed is not.
The sort of half siblings are wandering around somewhere, but is there a feeling that the Palace -- Kensington Palace is getting this back on track?
ARBITER: Yes, there's definitely a sense that they are regaining the narrative because actually when Meghan released that statement today, it's
quite unprecedented to hear from a Royal or the Royal T.V., normally, we get a rather guarded statement that has been approved by the person in
question, but to hear from Meghan herself, she said, she was very sad about this news. She cares for her father. She wants him to focus on his
health, but she thanked everybody for their support.
QUEST: Has the palace in some shape or form managed to mess this up by losing control? All the British papers this morning seemed to have a
common thread which is that when it comes to pageantry and royalty, the Palace does it brilliantly. They put on a show better than anyone else,
however, they seem to have managed to fumble the ball.
ARBITER: Yes, I would say they categorically dropped the ball here. You're right, Richard, when it comes to Royal events, everything is
choreographed, nothing is left to chance. They know minute by minute, second by second what is going to happen.
Now, I think in the case of Mr. Markle, we knew the half siblings were a liability from Day 1, but even Meghan Markle said yesterday that she will
not have her free speech censored by her sister, but the father, interestingly, in the entire 18 months that the couple had been dating and
then got engaged, he never said a word.
It's suddenly been these last couple of days, so perhaps that is where Kensington Palace fell short and not just realizing the potential here; for
Mr. Markle, I think he fell into something, made some bad choices. It spiraled out of control very quickly.
QUEST: And as for those minor Royals, those cousins -- Lord Freddie Winsor, Gabriella Windsor who have not been invited, and come on, even with
600 people, which is limited numbers by Royal standards, you can still fit them in. There are still -- I mean, I guess what people are saying is, why
would you have these celebrities that you barely know when you can have your cousins whom you have played with as children and growing up?
ARBITER: It's definitely odd that they have been left off. It's odd.
QUEST: Great word, odd.
ARBITER: All I can assume is that as adults, they don't have much of a relationship because Harry and Meghan have said over and over again, every
single person in that chapel, they have a personal connection with -- a deep rooted personal connection.
Now, of course, if you are the Royal that's been cut off the list, that's going to hurt because you don't want -- they are already billed as Minor
Royals, that's already a bit of a bum to have to live with that, but then the be cut off the list as well, it's sort of a little wounding, I suppose.
QUEST: I find it refreshing you've got a dysfunctional family on both sides, like everybody else.
ARBITER: Everybody else.
QUEST: You've got a guest list that's questionable, and people have been left off and there will be rousing arguments like everybody else. That's
just like the rest of us.
[16:10:16]
ARBITER: But isn't it encouraging that as a bride and groom, they have taken a stand because all of us at some point have said, "Well, I'd better
invite Aunt Mary because otherwise, I'll upset her." These two haven't. They said, no, if you are not on the list, you're not on the list. They
stayed true to exactly what they want and that's what's going to play out on Saturday.
QUEST: Excellent, by the way, have you ever shopped at Britain using Ocado?
ARBITER: I have, I have. I have. I know what side my breads and butters.
QUEST: Literally and figuratively.
ARBITER: Exactly.
QUEST: We've got a great couple of days ahead of us, right. Now, let's continue to talk about the wedding. We're a business show, and the wedding
-- any wedding is expensive. In the case of Harry and Meghan, it will cost a princely sum. CNN's Sam Burke reports.
SAM BURKE, CNN CORRESPONDENT: Everyone knows wedding are pricey. Meghan Markle's upcoming wedding to Prince Harry in the UK will take things to the
next level.
First, the dress -- it's still a Royal secret, but a leading contender is Ralph & Russo, the high end British brand behind the dress, Markle wore in
her official engagement photos had a reported $75,000.00 price tag.
Estimates put a wedding dress from this designer at around $340,000.00 and there is a good chance she may wear a second dress to the evening
reception. Food and drinks don't come cheap when you're hosting 600 guests for lunch and another 200 for dinner. It is estimated the queen, who is
hosting the afternoon reception will spend $135.00 per person for her 600 guests for a total of $81,500.00.
The evening reception hosted by Prince Charles could cost around $340.00 per head for 200 guests adding another $68,000.00 of cost.
London pastry chef Claire Ptak has been chosen to supply a lemon elderflower cake for the big day, while the bakery declined to comment on
their prices, it's not unusual for elaborate wedding cakes of this type to cost thousands of dollars.
Flowers are often a budget busting expense. London florist, Philippa Craddock is decorating the chapel for the ceremony. Her team plans to use
white garden roses and peonies. Many of the plants will be sourced from Royally owned gardens according to Kensington Palace. One estimate
predicts floral worth for an event of this scale could cost at the very least, nearly $70,000.00.
The great part about being a Royal is you already have great venues in the family, which means there shouldn't be any rental fees. The ceremony and
the first reception will be on the grounds of Windsor Castle.
The evening party will be held at the estate's vast country home, Frogmore House.
Even so, staff and logistics considerations for the three different events could add significant cost. Added all together and seasoned wedding
planners estimate the wedding could have a grand total of around $1.5 million.
(END VIDEO CLIP)
QUEST: Samuel Burke is with me, but of course, you have to allow also security, which the state pays for, and a lot of those resources you're
talking about -- we, as taxpayers, have already paid for.
BURKE: That's exactly right. We saw that $1.5 million figure at the end, that is what the Royal family will pay for, except for the most expensive
part, those security costs, Richard, those are going to come out to be about $8 million. That falls on me, I have the American accent, but I pay
my taxes in full here.
QUEST: And it's worth every penny, barring a man's security requirements. However, they also have got kitchens, they've got staff, they've got
trumpeters -- now, you've got to pay for the cost of moving them around, naturally, but lots of the cost, the real cost are below the line here.
BURKE: Exactly. It is baked in because the Royals -- take this, you're more clever than I am. That's why they are going to get a big discount on
those types of things, plus some of these people will want to get their names mentioned on CNN, the way they were just now, so they might get some
discount there.
So, $1.5 million isn't really as expensive as the most luxurious wedding about $10 million. I don't.
QUEST: I can't wait to see how much you spend on yours. It will be a cheese sandwich at the pub after the ceremony. Samuel Burke, thank you.
Now, to some major factory problems. Ford's top truck will soon be back in production. Ford's Vice President will tell us how much it costs, when we
come back in just a moment.
And we'll be live in Venezuela where the political problems push oil past $80.00. It's QUEST MEANS BUSINESS. And we are Windsor, glorious, glorious
spring evening.
[16:15:05]
QUEST: Welcome back, it is QUEST MEANS Business in Windsor, glorious evening. Donald Trump says he doubts the trade deal with China will work
out, which perhaps is not always a promising way to start a meeting with China's top economic envoy at the White House.
Liu He is at the White House for trade talks, which have apparently caused a split in the administration. Sources say, the Treasury Secretary, Steve
Mnuchin had a blazing round with Trump's trade adviser, Peter Navarro while they were in Beijing. It's not quite sure who was arguing with whom.
Jeremy Diamond is at the White House, but I am guessing, Jeremy that what it really comes down to is this idea how far are you going to move? How
much are you going to give?
JEREMY DIAMOND, CNN WHITE HOUSE REPORTER: Yes, that's absolutely right. Well, listen, we know that Peter Navarro and Steven Mnuchin have been on
opposing sides of this trade debate at the White House over the last several months, even since they both joined the Administration and two
sources have now told me that Peter Navarro, the trade adviser who really embraces the nationalist instincts of this President got upset with Steve
Mnuchin on the side lines of these talks in Beijing.
A source tells me that this conversation, a very heated argument happened outside of the government building where there trade talks were happening
and outside of the view of Chinese and US officials, but that Navarro erupted at Steve Mnuchin over his frustrations with the direction that the
talks were heading in and the fact that Steve Mnuchin was really engaging in a lot more one on ones with the Chinese Vice Premier rather than this
team meeting that would have involved Navarro, the US Trade Representative, Robert Lighthizer and other officials.
And all of these is now coming to a head as the second round of talks between the US and China over these trade discussions are happening today
in Washington. As we speak, the Chinese Vice Premier Liu He is expected to be -- is scheduled right now to be meeting with the President of the United
States at the White House right where we are.
And the President earlier today suggesting that he has been almost the first President to actually confront this issue of US-China trade
relations. Listen in.
(START VIDEO CLIP)
TRUMP: With all the years and all the years that you have covered trade and nations and wars and everything else, you've never seen people come
over from China to work on a trade deal. Now, will that be successful? I tend to doubt it.
The reason I doubt it is because China has become very spoiled. The European Union has become very spoiled. Other countries have become very
spoiled because they always got 100 percent of whatever they wanted from the United States, but we cannot allow that to happen anymore.
(END VIDEO CLIP)
QUEST: So, Jeremy, it's not exactly a very promising way to start negotiations, is it? Basically saying I expect them to fail.
DIAMOND: Yes, it's an interesting strategy on this President's part, but we know that he has taken a hard line against China in these talks to date.
You know, he is the one who imposed those $50 billion worth of tariffs and then threatens another $100 billion worth of tariffs on top of that.
But also this notion that he is the President engaged in trade negotiations with China is pretty ludicrous, past --
[16:20:15]
DIAMOND: -- presidents, past administration officials have done so, though it is true that this President has really brought this issue to the floor
perhaps more than his predecessors, Richard.
QUEST: Jeremy Diamond who is at the White House, thank you. Ford is due to restart production of its most popular vehicle on Friday. The company
halted production of the F150 pickup truck after a fire of one of its supplier's factories. Now, Ford's President of Global Operations told
Maggie Lake, the production halt will hurt profits even though it will have no effect on sales.
(START VIDEO CLIP)
JOE HINRICHS, PRESIDENT OF GLOBAL OPERATIONS, FORD: Thankfully, we had a healthy inventory of F-series trucks starting the month of May because it's
a spring selling season. We actually had 84-day supplies of F-series trucks, so if you're interested in a truck, we have plenty of stocks out
there for you in our dealerships and we are going to be able to replenish them quickly over the next several months, so we won't see any sales
impact. It will be a quarterly impact to our profits about $0.12 to $0.14 of share in the second quarter, but we are holding the full year guidance.
MAGGIE LAKE, CNN CORRESPONDENT: Joe, you know, we know that trucks have always been -- the F150 always crucial to Ford's lineup, but even more so
now that you made the recent announcement that you are going to be pretty much exclusively focusing on trucks, only two cars in production.
How does the company feel about that decision in light of the spike in oil and gasoline prices that we have seen?
HINRICHS: Sure, you know, today's SUVs get the kind of fuel economy that cars used to get 10 years ago, and so what customers have told us over the
last decade is really, the want the versatility and the higher seating and the more flexibility they get in utilities, but they want fuel efficiency
and they want affordability as well.
But with the advances of technology and capabilities of our company, we can give them that. So, we are moving to more SUVs in our lineup. Of course,
we have a dominant truck lineup and van lineup we are very proud of. We are going to continue to have the Mustang and the Focus active crossover,
but you will see more SUVs in our lineup because that's where customers are going and that's where they are paying to pay more for the vehicles they
have and the technology and the capabilities.
(END VIDEO CLIP)
QUEST: And Ford shares were slightly higher on the day. They beat the broader US market, which as I said, right at the top of the program fell
after the President's warning about trade talks with China. In fact, if I look at the day, a bit of a choppy day off 54 out in the close of the
lowest of the day.
Shares of CBS by the way closed down 4% and we'll talk more about the fight for control of that company later in the hour.
Energy stocks were the biggest winners overall because global oil prices went above $80.00 on Thursday. It was the last level seen at that level at
2014 and now, investors are concerned about the possibility of falling output from Iran.
The Chief Executive of the French oil giant, Total, says, that could push prices to $100.00 in the coming months. There are many different strands
to what is happening with the price of oil, which is keeping it well and truly on the bubble and rising.
CNN's John Defterios is in Abu Dhabi.
RICHARD DEFTERIOS, CNN CORRESPONDENT: Richard, it's certainly correct to suggest geopolitics is driving the oil market and why we see a major
threshold cross of $80.00 a barrel.
French energy giant, Total declaring it will have to come out of Iran's gas field if it does not obtain a US waiver, a clear indicator of this high
stakes game.
The company has big assets in the US and a large shareholder base as well, so it does not want to expose them to risk.
It took over three years to recapture the level we saw today, prompted by the OPEC, non-OPEC agreement to take 1.8 million barrels a day off the
market. The price getting a nudge higher as US crude and gas stock piles fell sharply ahead of the US summer driving season.
By energy standards, the amount invested by Total is not a big sum, but it was the first European energy player to go back into Iran, so it is
symbolic. And now, there are reports, another European company, Denmark's Maersk tankers will pull out of shipping Iranian crude.
So, E.U. officials are talking with Iran to find solutions to keep the Iran nuclear agreement intact, European corporate are clearly reducing their
risk, and the political tug of war keeps upward pressure on prices. Richard?
QUEST: John Defterios there, now much of the run up in prices over the last year is also due to the collapse of the Venezuelan oil industry adding
to an already desperate situation in the country.
The latest blow, inmates say they have taken control of a notorious prison, and in days before a controversial Presidential election.
CNN's Paula Newton is in Venezuela, rare access and joins me now from Caracas. The idea Paula, that they are going to stop producing oil or
indeed that oil which is being produced will dwindle will have a devastating effect on what little is left of the economy and on oil prices?
PAULA NEWTON, CNN CORRESPONDENT: Yes, and this should really be an inflection point for the Venezuelan regime because as we were just talking
about, oil now, first time in four years that are at $80.00 a barrel.
[16:25:16]
NEWTON: Richard, the complexion of the oil and gas industry is completely different now than it was just five years ago. Production -- the level of
production sold at their levels not seen since the 1950s here. What does it mean? It means that Venezuela very, very reliant always on its energy
industry, pretty much it's only export at this point. It is already indebted on any oil that it does produce and this has been a huge problem.
They have been selling assets and basically using them, there are other state run oil facility as a personal piggybank and right now, as this
election is ongoing, Richard, you see again, Nicolas Maduro just wrapping up his last election rally this afternoon, again promising that this will
be a free and fair election.
But many of those in the opposition parties, but also the United States, Europe and other Latin American countries saying that, "Look, this election
is far from free and fair." Many elements of the opposition boycotting it, and what does that mean, Richard? It means, that there is not a heck of a
lot of hope that the economy here will be transformed from the shortages, from the hyperinflation and more to the point that there will not be that
desperately needed investment in that oil industry here in the months to come, at least.
QUEST: OK, but Paula, in a sentence or two, how much worse is the situation than when you were there last time?
NEWTON: You know, it isn't worse, Richard, and here is the thing. When I have been here over other times, the shortages have been acute. Meaning,
if you had money, you could not buy the products. That is not happening anymore and why? Because the Maduro regime has been quite true in allowing
those borders to stay open to private citizens, but also companies with hard cash, go to neighboring countries and get the goods and medicine and
bring them back in.
Having said that, these shortages are still acute for those who do not have money. We also have to talk about the mass exodus. Hundreds of thousands
of Venezuelans you know, fleeing to other countries in South America and beyond and why? Because they absolutely cannot make a go over here. They
are those sending hard currency back to this country.
I mean, there is a malaise down here that has set in, Richard that I have never seen before and absolute apathy and that is because again, people who
have remained here, people who are in the margins of society are still trying to scrape together basic food on a day to day basis.
QUEST: Paula Newton, we will have more covered from you in the days ahead. Thank you, Paula.
Now, when we return, the battle of CBS takes turn. We are going to have the latest on the network's future, and I have looped in some help as well.
UNIDENTIFIED MALE: Oh yay, oh yay. We have more from wonderful Windsor here on CNN.
(COMMERICAL BREAK)
[16:30:00] QUEST: Hello, I'm Richard Quest in royal Windsor, yes, look at the castle, absolutely glorious behind me, lit up nice and turn the lights
off by the way at 1:00 a.m. while the queen is sleeping, they don't want to wake her up.
There's more QUEST MEANS BUSINESS in just a moment, we're going to be talking about the battle for the future of "CBS", a pivotal day for the
U.S. broadcaster, and as the U.S. allows sports betting, we'll speak to the chief executive of the firm building casinos near stadia.
And we'll also talk of course about the royal wedding. Before all of it, this is Cnn, and here on this network, the facts always come first.
When it comes to North Korea, President Trump says nothing has changed of which we know, and both countries are still making plans of the two leaders
summit despite the North's threat to cancel the talks.
Donald Trump suggested China's president, the reason he held a surprise meeting with Kim Jong-un maybe responsible to the North's tougher stance.
Officials in Congo say the Ebola outbreak there is now spread from rural areas to a large city, and that's raised fears it could become much more
difficult to control.
Forty four cases of Ebola have been reported and three confirmed by lab tests. And so far, at least 23 people have died. And swift off for
China's private space sector, its 9 meter tall rocket belongs to OneSpace, China's first private startup developing and launching its own rocket.
Yes, well, their mission is to collect data for a project OneSpace is working on with a state-owned company. And to Hawaii, residence near the
Kilauea volcano are being told to shelter in place -- look at that, the amount of debris that was erupted into the air, an explosion sent an ash
smoke as ice 9,000 meters.
And geologists say most of it will likely fall near the site of the explosion. Donald Trump's pick to run the CIA has be approved by the
Senate. Gina Haspel will become the first woman to run the spy agency, she passed the vote of 54 to 45.
Some senators opposed the nomination because of her involvement with interrogation programs during the Bush administration. It is a day of high
drama for the royal family of U.S. media, the Redstones, that is. The fighting of a challenge for their control of "CBS".
Earlier today, a judge ruled against "CBS'" request for temporary restraining order to prevent the Redstones from replacing members of the
"CBS" board. "CBS" shares fell when the ruling came off, sat down some 4 percent.
Now the fight, it is a nasty family affair. The Redstones own a company, look at this, I'll show you. The Redstones own national amusements, it's a
holding company, has 80 percent of the vote in stock in "CBS".
The chief executive of that company is Les Moonves who wants to take the Redstones' power away. "CBS" says it's confident it will prevail. The
company is due to hold a special meeting at the end of this hour.
Shari Redstone is pushing "CBS" to merge with Viacom which is another company that the Redstones control. "CBS" has tried to fight that off
despite having negotiations. And now the question is whether "CBS" would see any benefits.
So let's talk about this, as CnnMoney's Hadas Gold is following all the developments. Hadas, it's very complicated and we don't really need to get
into the nitty-gritty. But the reality is -- the reality is Shari Redstone and amusements own the company.
And it is their company. You know, you can't avoid the fact that they've 80 percent of the voting stock.
HADAS GOLD, CNN POLITICS, MEDIA & BUSINESS REPORTER: No, you cannot avoid that fact at all, and you're right that this is all a question about
control and what "CBS" and Les Moonves are alleging is that she is breaching really her duty to the company, and that they don't think that
this proposed merger with Viacom would be beneficial to "CBS" which they say would be a stronger situation on its own.
Keep in mind, Les Moonves is a very popular CEO of "CBS", yesterday at the upfront, all the advertisers gave him a standing ovation, he's very well
respected, he's been around for many years. And clearly, it seems though from the reaction for Wall Street that it wasn't a good reaction to "CBS"
losing that attempt to get that restraining order.
[16:35:00] Now the question will be what happens next within just a few minutes. This board meeting is supposed to occur where we might see the
board take a vote on whether they can really dilute how much control Shari Redstone has over "CBS", and even no matter which way that goes, this is
clearly going to be a legal battle that continues.
And this is a huge deal for the media world.
QUEST: Let me ask you, does the deal -- the deal that Shari Redstone is trying to promote to bring Viacom and "CBS" together which of course her
father split up some dozen or so years ago, does that deal make sense?
Is that what the market wants to see?
GOLD: Well, "CBS" seems to be saying that it doesn't make sense, Viacom is a weaker company that "CBS" -- and "CBS" has said that the actions that
Shari Redstone has taken has made it -- have made other companies now want to come in and potentially buy "CBS", potentially put it in a stronger
position.
Obviously the Reds -- Shari Redstone and her company feel differently, and this is what's going to be battled out in court. It's whether Shari
Redstone and her company are doing the right -- picking the right moves for the future and the health of "CBS", "CBS" clearly does not think --
QUEST: Right --
GOLD: So.
QUEST: All right, Hadas Gold who is in Washington with that story, you have your work cut out for you as you follow this, I suggest you buy a big
book and draw pictures to actually work out what's going to happen next. Thank you very much.
Now here in Windsor, almost every U.S. network is here for the royal wedding, and those that aren't, they're cashing in regardless.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: What am I supposed to do? Never had fun.
UNIDENTIFIED FEMALE: Peter Pan can't stay in Neverland forever, the match isn't so bad.
UNIDENTIFIED FEMALE: I'm Meghan.
UNIDENTIFIED MALE: Harry, and you look lovely.
(END VIDEO CLIP)
QUEST: What can one say, it was a T.V. movie by Lifetime that never made it to the theaters. Our coverage of the actual royal wedding will be shown
in American cinemas, almost 200 of them in the morning.
It's the first time a royal wedding has been screened in this way. Ray Nutt is the chief executive of the organizers, Fathom Events. Why Ray,
it's going to be on every network including our own. Why will people get up at weird hours of the night to go to watch it in a movie theater when
they can stay in their pajamas in their living room.
RAY NUTT, CHIEF EXECUTIVE OFFICER, FATHOM EVENTS: Well, we're actually showing it in 200 movie theaters, and that will 10 O'clock local time
everywhere. And we intentionally took the live feed and delayed it until 10 O'clock so that it will be convenient for all of Fathom fans to come out
and watch it in movie theaters together.
We've actually added theaters over the last couple of weeks based on demand for it, and ticket sales are going great for it. So I'm confident that
there's going to be a lot of people coming to the movie theaters to see it in groups.
QUEST: Hang on, you said you're running them at 10 O'clock, so you're delaying it by some hours before you're showing it, is that correct?
NUTT: We are, and it's the only place that you can see a commercial free as well. So that's another incentive for people to come out and spend a
couple of hours together in the movie theaters. It's my understanding that several theaters, AMC, Regal and Cinemark theaters are showing it and
serving Cornflakes and tea and just having a party in the movie theater.
So it's going to be a good time.
QUEST: I mean, that really is the point, isn't it? If you're going to go there, I mean, it's almost like a Rolf Harris show and you go -- and it's
said to be -- you don't want people dressing up, you're going to want them serving tea, you're going to want them having -- you know, you're going to
want -- will -- Harry and Meghan lookalikes, it's going to become a party atmosphere hopefully.
NUTT: We're hoping so, and just about everything we do at Fathom Events, we try to eventize our content and we put into theaters, and this certainly
will be no different. So like you said, it's going to be the first time in history that a royal wedding is being broadcast in a theater.
And so we hope fans come out, buy tickets, go to fanthomevents.com and buy tickets and be part of history.
QUEST: Why are Americans so fascinated, do you think, sir, by the British royal family? I mean, look, I was born and brought up with the whole thing,
I understand it to an extent, I followed it and yes, I support it too as well.
But you, why are Americans obsessed by the royals?
NUTT: Well, I think that, you know, there are very -- now, so this is what you don't get in the United States. And I think that people are
fascinated, I think there's -- Diana is going to be on a lot of people's minds that day and a lot of history there.
So I think there's a lot of history buffs in the United States that like it, and it's just something you can't get over here.
[16:40:00] QUEST: Excellent. Well, I wish you -- it's always good to have an event that brings people together, sense of community. Whether it's in
the village square or indeed in your movie theaters, thank you sir, I appreciate you joining us.
Another Windsor is going all out to celebrate the royal nachos, it will cost you a fortune to join in. A hotel in Kenya is charging couples up to
$10,000, yes, you heard me right the first time, $10,000 to watch the televised proceedings on Saturday.
The Windsor Golf Hotel and Country Club in Nairobi is promising a royal experience for that with the royal family including a helicopter ride to
Mount Kenya, some people are pointing out on social media, even if you're in Kenya, it will be cheaper to fly to Britain and see firsthand.
We will talk more about this when we return. Britain tighten rules on gambling as the U.S. sets to loosen them. I'll be speaking to the chief
executive looking to capitalize on the changing rules for our sports betting.
It is a glorious night -- that's the castle, oh, there it is, look at that, splendid to see, and the flag flying by thousands of course as her majesty
is in residence at the moment.
(COMMERCIAL BREAK)
QUEST: They are known as the crack cocaine of gambling. They are betting machines that can be found at the pubs and bookmakers across this country
in the U.K. The government now wants to curtail how much these machines can take from their customers and slash the maximum permitted stake.
At the moment, it is a 100 pounds, about $140 down to 2, think that is around $3. Some industry leaders claim it could be the death bell for many
betting shops common on every busy street.
And yet, as the U.K. tightens, the U.S. seems set to loosen them as we told you last night -- a federal ban on sports betting overturned by the Supreme
Court this week. Now, my next quest is opened to capitalize from the change.
David Cordish is building sports casino hotels near the stadium. He joins me now live from his casino and hotel in Hanover in Maryland. Good to see
you sir, thank you very much indeed. This idea of creating casinos near sporting events or a large stadium at which they're held.
I can see a certain logic to it, and -- but is it wise?
DAVID CORDISH, CHIEF EXECUTIVE OFFICER, THE CORDISH COMPANY: Well, we've been building casinos in a lot of different places. Where I'm talking to
you today is in Maryland, halfway between Baltimore and Washington.
And we just are opening a five-star hotel connected to the casino with a major event center. And the idea of our casinos in our hotels and our
event centers is to create a live entertainment, live is our trademark in the patent office, experience for people.
[16:45:00] You know, you can have Amazon send you whatever you wanted home, but you need to go out for social experience, for a live experience, for a
fun experience, and that's what we're trying to create --
QUEST: And the interesting -- and the interesting part is though, as you see the Supreme Court decision along with the decision in the U.K. to
tighten up on gambling. Is it your understanding that those more relaxed approach in the United States in the future now?
CORDISH: Well, there's no question about it, you've asked a very good question. The sports betting decision by the Supreme Court of the United
States two days ago is a huge win for the casinos and I think for Americans in general.
We've had literally tens of billions of dollars of sports betting in the United States. But the trouble is, it's under the table, it goes overseas
and it's not taxed in the United States --
QUEST: Right --
CORDISH: And it's not regulated in the United States. With this new decision, it will be coming to the casinos state by state all across the
country. Until today, it was only in Nevada, now it will be everywhere.
QUEST: And you are preparing yourself for this bonanza.
CORDISH: No question about it. And when you have events in the United States such as March Madness or the Super Bowl or the World Series or the
World Cup, the betting is unbelievable and when they can do it right at home, you are talking about tens of billions of dollars --
QUEST: Got you --
CORDISH: Really bonanza betting, the sports race are trying to get in on it, everybody wants in.
QUEST: Good to see you sir, thank you --
CORDISH: And --
(CROSSTALK)
QUEST: Company, we appreciate the honesty, thank you very much indeed. Now, I apologize, about delay there on the line. Coming up as we continue
tonight -- maybe I'm going to go and see if I got it right. You're doing, oyez! oh -- no, more of the weekends -- I need some help, sir.
(BELL RINGING)
CHRIS BROWN, TOWN CRIER: Oyez! More from QUEST MEANS BUSINESS tonight here is beautiful, Royal Windsor.
QUEST: I'll last enter.
(COMMERCIAL BREAK)
QUEST: Now, Windsor has played host doing this royalty for a thousand years, rarely just a town, seen an event quite like this. Even the coffee
has been given the royal treatment in honor of the big day.
[16:50:00] Look at these -- this is one -- I actually have one here as well which has my own face on it, which is I think -- well, what's the correct
name for these coffees?
BROWN: Well, you've got some mocaccinos there --
QUEST: Mocaccinos --
BROWN: Actually profited Windsor, and that's a Quest Latte.
QUEST: Quest latte!
BROWN: Yes --
QUEST: How about an Espresso -- the excitement of the day. The town crier is Chris Brown. good to see you sir --
BROWN: Nice to see you --
QUEST: Along with him is Roy Shanks (ph), whose family has run a local bakery for four generations and you'll be serving cakes this weekend --
look at these.
UNIDENTIFIED MALE: Yes, absolutely, we've got two types of miniature Harry-Meghan cakes, lemonade elderflower. We've tried to base more -- we
think the actual cake will look like they've been going down a storm and yet, we've made about 800 of these now, so we're expecting a big day Friday
and tomorrow, so really looking forward to it.
QUEST: How do you -- this is -- and what -- this is lemon and --
UNIDENTIFIED MALE: Lemon elderflower, yes, so it's got a bit of lemon set in, in the sponge, and then it's got a bit of a no to flour, butter cream.
So we understand that's their favorites of the cakes, we try to copy that as much as we can.
QUEST: Now, you actually have had history of Harry and Meghan, or at least then the boys Harry and William --
UNIDENTIFIED MALE: Yes --
QUEST: They've been coming into your shop.
UNIDENTIFIED MALE: Yes, well, that's certainly the rumor, yes, so I think always -- yes -- no, the boys certainly have been done I think --
QUEST: You're being diplomatic, OK, you're squirming, you're squirming!
UNIDENTIFIED MALE: I've heard stories of them playing Nintendo, you know, but yes, I mean, you're talking --
QUEST: Just saved by town crier. Sir, what role do you have in these proceedings?
BROWN: Well, I'm here to welcome guests to Windsor, I'm the town crier for the royal (INAUDIBLE), and so my role is primarily to greet people as they
arrive and help them, show them where the toilets are actually.
QUEST: Right, and how long have you been doing this particular role?
BROWN: I've been the town crier for six years. We didn't have a town crier since about 1900, the last town crier resigned and we didn't replace
him until years ago when they suddenly realize that they've forgotten that we needed a town crier and they gave me the job.
QUEST: So what role do you do -- I mean -- I mean, actually geese -- not - - these are swans, are they swans or are they geese?
BROWN: Those are the geese.
UNIDENTIFIED MALE: Those are the geese.
QUEST: Those are the geese, they're not swans. And if any noise tonight - - what role do you play in all of this?
BROWN: My role is to simply be there for the general public. I am not part of the royal event so to speak, I'm there for the council, for the
general public.
QUEST: Right, and your bell as such.
BROWN: The technique is all about not slamming and hurting (ph) your nose and breaking your face. Other than that, if you want to have a go
yourself, that's the official town crier's bell for Windsor --
QUEST: Is it all in the risk actually?
BROWN: Absolutely, you go for it.
(BELL RINGING)
Very good --
UNIDENTIFIED MALE: Wow --
QUEST: And then the oyez!
BROWN: Oyez! and it's not oh, yes, it's the French for listen.
QUEST: So --
BROWN: Often the world -- oyez! it's the old French for listen. So we're telling you well, to listen to what they're about to tell you.
QUEST: Oyez!
BROWN: Oyez!
QUEST: Oyez!
BROWN: Oyez!
QUEST: Not au revoir?
BROWN: Not --
(BELL RINGING)
QUEST: Don't worry about yourself, sir, and the way in which Windsor is able to capitalize on this particular event, because if there's one thing
we know, I mean, royalty is not new here.
BROWN: Yes.
QUEST: The entire high street is not a more than a -- frankly, a series of souvenir shops designed to cash in on the royals.
UNIDENTIFIED MALE: Yes, you know, I think for us, the key thing about this wedding is been having with the fun, you know, so we can try to do that
with our products and you know, the customers that have come in have given us a great feedback.
But also, you know, make Harryccino (ph), things like this, you know, the locals are really enjoying and the tourists increasing that we're seeing
come through. You know, it's been really good and you know, for us, being able to be on shows like this is an expanding business, it's just been
fantastic.
We've had more media through the bakery than I could imagine -- from all countries in the world, and really that --
QUEST: You're milking it.
UNIDENTIFIED MALE: Yes, we're milking it for sure, absolutely. You know - - you know, since Easter, we thought, how are we going to make this? What parts are we going to make? You can massively attest to that --
QUEST: You have to --
UNIDENTIFIED MALE: For sure, have to --
QUEST: Yes!
UNIDENTIFIED MALE: These are X1 --
QUEST: You have to do it --
UNIDENTIFIED MALE: Yes!
QUEST: And why not?
UNIDENTIFIED MALE: Yes, exactly, yes, these are exact, came out the way and Harry -- making wedding cakes straight onto the shelves. So you know,
it's been fantastic for us. Saturday is a big day.
QUEST: What about test? Now, I have to say -- what is it called? Harry --
UNIDENTIFIED MALE: Meg-Harryccinos (ph).
QUEST: Meg-Harryccinos (ph) and the Quest Latte --
UNIDENTIFIED MALE: The Quest latte --
QUEST: Look very nice, look very nice. And -- but where does good taste end and cold tap(ph) begins?
UNIDENTIFIED MALE: Well, Richard, it's probably a little bit cold now, but I promise you that is an absolutely fantastic --
QUEST: Right --
UNIDENTIFIED MALE: Tasting cappuccino, yes, so --
QUEST: Right --
UNIDENTIFIED MALE: It looks like mocaccino, you know, for us, as I said it, it's about having fun, you know, and really kind of -- allowing kind of
the Meghan and Harry kind of feel to comment of the product. So --
[16:55:00] QUEST: Gentlemen, stay exactly where you are, before we go to a break, I need to just remind people how the markets have traded and now
while they don't. And you, sir, will take us out with a reminder that we'll have a profitable moment in just a moment.
So here's office, stay seated, within a moment. Let's look at the markets and how they've traded. The Dow Jones Industrials did ended the day in
just -- well, there was very little change when all was said and done, down 54 points, you've got to put that into perspective.
The market has risen very sharply lately, (INAUDIBLE) 54 at the close. I'll have the details of how you can watch our coverage coming up, whiles
the town crier cries our profitable moment -- in fact, just read that in front of you town crier and I'll enjoy something of a lemon and a flag,
this is rather good.
BROWN: Oyez! It's profitable moment after the break!
(COMMERCIAL BREAK)
QUEST: Tonight's profitable moment from Windsor, a town crier, 11 elderflower cakes and Harry-Meghaccinos(ph) or whatever it might be called.
It's really good to see the way which Windsor has embraced this and to a certain extent tactfully managed to get on board with so many ways to make
money.
At the end of the day the royals decided to have an event. They could have done this quietly, they could have done it privately (INAUDIBLE), they
didn't need to do this. It doesn't really lie in their mouth to now complain about the hoopla that is taking place around it.
Which is why we can all thoroughly enjoy the event. Over the next day or so, we're going to see all sorts of extraordinary matters, they're going to
be all sorts of tales and stories, but at the end of the day it's business and a wedding.
And that's QUEST MEANS BUSINESS for tonight, I am Richard Quest in royal Windsor. Whatever you're up to in the hours ahead, I hope it's profitable.
END
