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Quest Means Business
White House Denies Trump Replied "No" to Question on Russia Threat; Young Thai Team Out of Hospital and Back with Families; Boris Johnson: Not Too Late to Save Brexit; Competitors Complain Android Monopolizing Market; Operations at Heathrow Down, Airlines Complain of Computer Problems; Musk Apologizes to Cave Rescuer for Angry Tweet; Amazon Reports Prime Day Sales Results; Amazon Share Price Keeps Bezos as World's Richest Man; Airbus and Boeing Aircraft Deals Top $100 Billion. Aired 4-5p ET
Aired July 18, 2018 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BIANNA GOLODRYGA, CORRESPONDENT, CNN: The Dow's winning streak continues as trading comes to an end, this Wednesday July 18th. Tonight, stopping
the rise of the robot. Europe hits Google with a record fine over Android. Russia wants to make a deal with Donald Trump. I'll speak to the man who
Vladimir Putin wants at the center of it.
And Elon Musk says he is sorry for his outrageous Twitter outburst. I am Bianna Golodryga and this is "Quest Means Business."
And we have a busy hour for you coming up. I'll be speaking to the fund manager, Bill Browder who Vladimir Putin directly targeted at the Helsinki
Summit. Richard Branson tells us why he is worried about modern parallels with Nazi Germany and the head of Kenya Airways tells us how he is hoping
to connect Africa with the world.
But we begin tonight with Google and a new front in its long-running antitrust battle with the European Union. The tech giant is vowing to
fight back against a record $5 billion fine from Brussels. The EU says it is punishing Google for breaking competition rules by forcing smart phone
manufacturers to install its search and browser apps on devices using Google's Android operating system.
Investors appear unfazed by the hefty fine. Shares of the Google parent Alphabet closed flat. Anna Stewart is in London with more on this. Anna,
record fine, yet as we just noted, the stock didn't seem to budge. What does that suggest?
ANNA STEWART, CORRESPONDENT, CNN: Well, this has been a very, very long time coming. I mean, since 2015 actually, so three years in the works. We
all knew this was going to be a huge fine. $5 billion swamps the fine they had last year from the EU. That was a record fine, but that was $2.7
billion. This is nearly double that and it actually accounts for some 40% of Google's net income in the last year.
So, you know, it's going to hurt. Now, this particular probe focuses on Google's Android mobile operating software, and if you want to know what
the market share is, it is pretty dominant and I know that because I Googled it. Eighty percent of people in Europe and worldwide use Android.
That in itself isn't illegal, but the fact of the matter is, the EU believes that it is stopping other people from entering the fray and being
competitive.
Here is what the competition commissioner said earlier today.
(BEGIN VIDEO CLIP)
MARGRETHE VESTAGER, EU COMMISSIONER FOR COMPETITION: Today, the Commission has decided to fine Google 4.34 billion euros for breaching EU antitrust
rules. Google has engaged in illegal practices to cement its dominant market position in internet search. It must put an effective end to this
contract within 90 days or face penalty payments.
(END VIDEO CLIP)
STEWART: And those penalty payments would be 5% of daily global turnout, and so for those - that penalty is pretty hefty, too, Bianna. Now, in
addition to this, it has got to make all of these changes and these are really quite difficult to do in 90 days. Let me run you through some of
them because it says that Google has to unbundle its App Store from its apps. So, currently a phone maker, if you want to license their App Store
has to have Google Search. They have to have Chrome and things like this.
Currently, Google gives financial incentives for phone makers to exclusively preinstall some of their apps, and also, Google has to now
allow phone makers to use alternatives to its Android software even though they may want to preinstall some Google apps. There are a lot of things to
be done. Google of course immediately appealed. They said they're going to appeal and they are also arguing that really, it is - they are helping
competition because they say, by making things cheaper for phone makers, more people are entering the fray. They also say, rival apps are only ever
one click away.
GOLODRYGA: Anna, thank you and later in the program, I will speak to the lawyer from the group that brought this case to the Commission representing
companies like Microsoft and Oracle.
Now, to Washington where President Trump is struggling to shake off the hangover from his meeting with Vladimir Putin. Moments ago, Press
Secretary Sarah Sanders was forced to clarify remarks that the President made earlier in the day where he appeared to say Russia is not targeting
the US. Sarah Sanders said the President was simply misunderstood.
For his part, the President claimed once again that he had been tougher on Russia than any of his predecessors.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF The UNITED STATES: We're doing very well. And let me tell you - we are doing very well. We are doing very well, probably
as well as anybody has ever done with Russia and there has been no President ever as tough as I had been on Russia. All you have to do is
look at the numbers, look at what we've done, look at sanctions, look at Ambassadors not there. Look, unfortunately at what happened in Syria
recently and I think President Putin knows that better than anybody. Certainly, a lot better than the media.
(END VIDEO CLIP)
[16:05:12]
GOLODRYGA: As the US Congress threatens to impose fresh sanctions on Russia, the fund manager who pushed for the last round of sanctions has
found himself at the center of the election interference case. Vladimir Putin mentioned Bill Browder by name at Monday's press conference. Mr.
Browder is an investor and a businessman. He was deported from Russia after exposing corruption there and was later dubbed Vladimir Putin's
number one enemy.
On Monday, the Russian President suggested Browder could be a bargaining chip in exchange for letting Robert Mueller question Russian officials.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, PRESIDENT OF RUSSIA (Through an interpreter): Business associates of Mr. Browder have earned over $1.5 billion in Russia. They
never paid any taxes, neither in Russia nor in the United States. And yet, the money was gained in the country, so we have an interest of questioning
them. That could be a first step.
(END VIDEO CLIP)
GOLODRYGA: A few minutes ago, at the White House press briefing, Sarah Sanders said the US government was considered their proposal.
(BEGIN VIDEO CLIP)
SARAH SANDERS, PRESS SECRETARY OF THE WHITE HOUSE: He said it was an interesting idea. He didn't commit to anything. He wants to work with his
team and determine if there's any validity that would be helpful to the process, but again, we've committed to nothing and it was an idea that they
threw out.
(END VIDEO CLIP)
GOLODRYGA: Bill Browder says Vladimir Putin is going the wrong head of state for making a deal. Mr. Browder joins me now. Bill, good to see you.
Stunning headlines to hear from the President, from Vladimir Putin on Monday. What is your reaction first to what you heard from Vladimir Putin
and second, to what you just heard from Sarah Sanders.
BILL BROWDER, BRITISH-AMERICAN FINANCIER: Well, as far as Putin is concerned, he has been absolutely furious with me for a long time because I
was the person responsible for putting in place the Magnitsky Act. The Magnitsky Act imposed (inaudible) and these are sanctions on crooks and
human rights violators from Russia, and as Putin as a crook and a human rights violator, he feels like his own personal fortune is at risk, and so
he is very mad at me. He's been trying to have me arrested, kidnapped, killed for a long time.
And this latest request of Trump in Helsinki was just a continuation of that whole frame of mind that Putin is in.
GOLODRYGA: Yes, and of course, I've been following your story for many years now and was stunned to hear Vladimir Putin bring up your name on
Monday. President Trump suggested it was an interesting idea, this proposal of a quid pro quo where Russian investigators would have access to
interviewing you in exchange for Robert Mueller's team having access to Russians in Russia that they want to interview. That seems like a baffling
proposal, yet, the President called it interesting. What was your reaction?
BROWDER: Well, I think it's absurd for him to even entertain that proposal. Vladimir Putin hasn't just asked to interview me, he has asked
to interview a number of US government officials who are involved in getting the Magnitsky Act passed. He wants to interview Ambassador Mike
McFaul, the former US Ambassador to Russia. He wants to interview Kyle Parker who is a senior Congressional staff member who wrote the Magnitsy
Act. He wants to interview Robert Otto who works in the State Department, and probably most heinously, Vladimir Putin wants to interview three
members of the - three special agents from the Department of Homeland Security who are prosecuting money laundering of Russians in New York who
were involved in the Magnitsky case and taking money from the crime that Sergei Magnitsky had exposed.
And so, I mean, the whole thing is as corrupt as you could possibly be, the fact that the people who passed the Magnitsky Act and the people who are
investigating money laundering are being targeted to be interviewed and the President of the United States thinks that's an interesting idea. This has
got to be one of the lowest points in his presidency for him to even have that reaction.
GOLODRYGA: And not only that, when asked about it, Sarah Sanders had an opportunity to shut down that idea and said - she said, the President is in
fact considering it and is talking to his advisers about it, and acknowledged that it was brought up in his one on one meeting with Vladimir
Putin.
Of course, many of our viewers are familiar with the adoption issue that it is connected with the Magnitsky Act. Explain to our viewers again, why
adoption and Russian adoption in particular is associated with the Magnitsky Act.
BROWDER: So, when the Magnitsky Act was going through Congress, Putin really didn't like it. He tried as hard as he could to try to stop it. He
sent emissaries to Washington to spread false information. He leaned on President Obama at the time, nothing worked, and so in retaliation for the
Magnitsky Act being passed, he then banned the adoption of Russian orphans by American ...
[16:10:13]
BROWDER: ... families as a retaliation and let me just point out how heinous that is, that those orphans tended to be sick orphans, orphans with
HIV and Down's Syndrome and various things, American families would go with open arms and open hearts taking those children back to America and nursing
them to health. In Russia, they die in the orphanages. And so effectively, Putin ...
GOLODRYGA: Yes - is punishing his own ...
BROWDER: Is punishing his own ...
GOLODRYGA: Go ahead ...
BROWDER: ... his own orphans to death. Yes.
GOLODRYGA: Right, and so, my question to you is, from everything that you've heard now, do you get a sense that the President is considering
abolishing the Magnitsky Act. Obviously, that would take an act of Congress, but do you get the sense that that is something that President is
contemplating.
BROWDER: Well, I know it's something that Putin wants more than anything, but I mean, as you said, this was not passed as an executive order. This
was passed as an act of Congress. The Senate voted on it 92 to 4, the House of Representatives, 89% and I can tell you that there is no - this is
not a partisan issue. Republicans and Democrats are fully on board to keep the Magnitsky Act. There is no chance it will be repealed. So whatever
Donald Trump might have agreed or thought about, that's not going to happen.
GOLODRYGA: And you, we should note are not a US citizen. You are a British citizen, so the idea that this would be somehow something that the
US government would be able to control seems a bit ludicrous as well.
BROWDER: Well, I think both President Putin and President Trump didn't do their homework. I immigrated to the United Kingdom 29 years ago. I'm a
British citizen and so, in this dirty deal that they're discussing, they better bring in another head of state, who is Theresa May and I'm sure
she'd have a few choice words with Vladimir Putin who just set off chemical weapons in Salisbury recently.
GOLODRYGA: And we know that you were arrested in Spain, that your life has been threatened around the world. You didn't seem to feel the last few
times that we spoke as threatened when you would come to the US. Given what you have heard in the last 48 hours, do you feel safe traveling in the
United States now?
BROWDER: I think that when this full thing gets ventilated at a legal level, there's no chance that anyone is going to be questioned by anybody
in the United States - me or any of those people who Putin put on the list. I don't think that the law enforcement establishment would tolerate that.
I don't think it's legal to do and I don't think it's going to happen.
GOLODRYGA: Yes, the State Department has refuted what we heard from Sarah Sanders as well, so we shall see. This is to be continued, but we
appreciate you joining us, Bill Browder. Thank you.
BROWDER: Thank you.
GOLODRYGA: And coming up, it's a battle for control of the skies. Boeing and Airbus race to sell the most planes at the Farnborough Air Show.
And a flight 20 years in the making, Ethiopian Airlines resumes service to Eritrea following a peace deal between the two countries.
[16:15:00]
GOLODRYGA: Richard Branson says he is worried that some rhetoric in the world today is similar to Nazi, Germany in 1939. The Virgin founder spoke
to CNN's Eleni Giokos in South Africa where he took part in the celebrations for Nelson Mandela's 100th birthday. Branson also spoke about
his work as an adviser to the Elders Group, which aims to carry on Mandela's legacy.
(BEGIN VIDEO TAPE)
RICHARD BRANSON, FOUNDER, VIRGIN GROUP: The idea was that Mandela wanted to see the Elders set up and said that when he was no longer with us, the
Elders could carry on for decades and decades, hopefully centuries and centuries, speaking out on issues like climate change and trying to bring
universal healthcare to every country in the world and intervening on conflict resolution issues, and the Elders that are now headed up by Kofi
Annan of Italy and doing all three in many, many different countries.
ELENI GIOKOS, CORRESPONDENT, CNN: Global issues that are plaguing the world right now and we're seeing so many changes happening with people
becoming a lot more protectionist, we are seeing the closing of borders to refugees that are in dire need of assistance, is that becoming top of mind
for the group as well?
BRANSON: Yes, I mean, the Elders have spoken out strongly about people that are displaced from a war zone and they have nowhere to go, countries
have to be more generous in letting them in and embracing them, and countries have been generous for centuries, and it's very sad to see so
many borders being put up and leaving these people in dire straits.
GIOKOS: The bastion of hope for decades and decades of course, being the United States, many are watching and looking what President Trump is at, at
the moment, and saying this isn't in the best interest of the world. Is that your view as well?
BRANSON: I personally feel that President Trump - a lot of his values are not Nelson Mandela's values. They're not the Elders' values and yes, I
wish he had a slightly bigger heart than he seems to have. And particularly at this time in the world, we need Presidents in every country
in the world with big hearts.
GIOKOS: And Obama, I mean, he said this yesterday, we've got to speak out as much as we possibly can at this point in time. Do you think we're on a
precipice of falling into a dangerous path?
BRANSON: Yes, I mean, I think that a lot of talk that's going on is not that dissimilar to what happened in Nazi, Germany in 1939, and we've just
got to be absolutely certain that things don't fall into the ghastly situation that happened in Germany in the 1939-1940, these things can go
horribly wrong and it's up to the democratic people who believe in democracy around the world to make sure that doesn't happen.
(END VIDEO TAPE)
GOLODRYGA: Words of warning from Richard Branson. Well, today, we saw a landmark moment for East Africa. Flights have resumed between Ethiopia and
Eritrea after a peace deal ended a 20-year conflict. The road reunites friends and families from both sides of the border, local media reported
the first flight was sold out within hours of going on sale. The restoration of flights will strengthen ties between the former enemies.
Ethiopia is enjoying an economic revival at break neck speed. It is now sub Saharan Africa's fastest growing economy. We are talking growth in
excess of 8% this year according to the IMF.
The boom is being fueled by large scale infrastructure projects like a new railway network and the Grand Renaissance Dam. Ethiopia is also opening
state-run industries to local and international investors. That includes Ethiopian Airlines and state-run telecom companies. Driving this
liberalization is the new Prime Minister Abiy Ahmed who has only been in power for a couple of months.
He lifted the state of emergency and ended the deadly conflict with Eritrea. The question is, can he keep the momentum beyond the honeymoon
period? Awol Allo joins me, he is a lecturer at Keele University School of Law. Thank you so much, Professor for joining us and that is the question
I am going to start with, can this honeymoon continue?
AWOL ALLO, PROFESSOR, KEELE UNIVERSITY OF LAW: I think every indication is that there is this very huge commitment both on the part of the Ethiopian
government and the Eritrean government that this will continue and this will most likely last longer, and I think the Eritrean Prime Minister and
President who was recently in Ethiopia, there was a concert that was held in his honor. The expression of solidarity and the love that was displayed
on that stage, I think they might ...
[16:20:16]
ALLO: ... start the kind of desire and interest to continue in a different direction from the position that the two governments have taken
in the past, so it's very likely that it would continue and I think today's flight which had very strong symbolic and of course, significance has
started or kicked off that new relationship.
GOLODRYGA: We talk about this economic growth that we've seen over the past year, how much has that contributed to this sense of unity now between
these two former enemies and the overall atmosphere of potential growth going forward for the country?
ALLO: I don't think the economic progress Ethiopia has made over the course of the last 10 to 15 years has in any way contributed to the change
in terms of the relationship between Ethiopia and Eritrea. I think what has changed in the political landscape in the region is the change that has
taken place within the Ethiopian state itself.
Ethiopia was a country that was dominated by a single party for the last 27 years, but recently, there was a political movement that has been happening
within the country, young people protesting calling for change. It was that protest that brought about a radical transformation in terms of the
configuration of power within the Ethiopian state that brought the current Prime Minister into power. It is this Prime Minister that reached out to
Eritrea, essentially arguing that relations between Ethiopia and Eritrea has to change in order for both Ethiopia, Eritrea and the broader whole of
Africa region to go forward.
GOLODRYGA: So, still a lot of the credit is due to the change in leadership. What if any headwinds do you see in the future?
ALLO: I think the normalization of relations between Ethiopia and Eritrea is significant not just for the two countries, but also for the region, not
just in terms of economic development for the two countries and the region, but also politically and socially. The fact that the region has not really
been integrated economically is mainly due to the instability in the region and that instability to a large part is due to the hostile relationship
between Ethiopia and Eritrea.
And so I think this new dynamic relationship between the two countries does open up opportunities for the two countries and also for the region more
broadly to be integrated economically and the Ethiopian Prime Minister has been emphasizing how important it is for the region to integrate
economically.
GOLODRYGA: Any cautionary signs though? Anything that would ring alarm as far as you're concerned in what could sort of prevent continued harmony?
ALLO: As I was saying, I think this is mainly the outcome or the result of the change that have taken place within the Ethiopian state and this change
is not - it has not been consolidated. It has not taken root yet, and Ethiopia as a country has some serious structural problems. So, if
Ethiopia is able to overcome this structural instability that are at the core of the political process, then I think there's a very good chance that
the relations between the two countries and broadly, within the region would go forward and would become stronger and stronger.
But if Ethiopia falters some way, in some ways, on its way, and I think this can most likely go back because there are elements within the
government that are for example, not particularly happy about this recent rapport between Ethiopia and Eritrea and these are elements that have been
very dominant in Ethiopian politics in the past, controlled security and the military establishment, so there is some risk there, but I think by and
large, the Ethiopian public seems to be behind the current Prime Minister if the moment that is being - that is ongoing at the moment is supported by
regional and international activists, then I think there is a very good chance for this to continue to move forward.
GOLODRYGA: Reason for optimism, at least for now, Dr. Allo, thank you so much for joining us. Well, the CEO of Kenya Airways has competition from
Ethiopian Airlines is good for his own carrier. The airline is preparing to launch its first direct flight from Nairobi to New York. The Chief
Executive told Richard he is trying to connect Africa to the world.
(BEGIN VIDEO TAPE)
SEBASTIAN MIKOSZ, CEO, KENYA AIRWAYS: In the same way a business project and a psychological project. It's like a turnaround of the Atlantic. It's
like going on a new market, going in a market that everybody wanted to go since a long time, so we get lots of emotional support also, which is very
important in the commercial part.
RICHARD QUEST, HOST, QUEST MEANS BUSINESS: In terms of Kenya Airlines itself, in terms of Kenya, the airline itself, as you compete against the
other ...
[16:25:16]
QUEST: ... South African Airways who knows what's happening there. It is a - in my words, like yours, it's a basket case. Ethiopia still continues
to grow strongly, but obviously, it's hit some rot as well, where do you see yourself? What are you aiming to do?
MIKOSZ: We are aiming to connect a continent and the East Coast of Africa to the East Coast of the US, and if you take it the other way around, we
are living in a continent which is 1.2 billion people and we will only be the fifth African airline to fly from the US to Africa, and only the
seventh city out of all of the continents.
QUEST: But are you aiming to connect them within Africa?
MIKOSZ: Yes, so that's part of the big added value I believe we are going to bring to the market, is that beyond Nairobi, we think about at least sub
Saharan East Africa, 42 connections from Mauritius to Tanzania to Rwanda to South Africa, to Zimbabwe, Zambia et cetera, these are all things that will
be offered to passengers going to Nairobi.
QUEST: Competing directly with Ethiopia.
MIKOSZ: But that's competing and cooperating. I mean, this is more about the connectivity of the continent. The more - the better Ethiopian is, the
better I am. The better I am, the better they are. It's about bringing the level of water higher.
QUEST: You had huge experience in European aviation, obviously from that and elsewhere. You've now got real experience of African aviation, lots of
promise, which rarely gets delivered, open skies, which may or may never happen, declarations that never get met. Is it frustating?
MIKOSZ: It is not always like this. Sometimes, they are delivered and I am the one who wants to deliver ...
QUEST: Is it frustrating?
MIKOSZ: It is. Yes, of course, it is, but this is a much earlier state, so you have to also look at the whole chess play when you play your chess.
Many countries are just building airports now. Many countries want to invest in airlines. We are at a much earlier state of development than
Asia and Europe and this is coming, so it's very nice to see this way of growing up, and of course people would like to do it faster. They would
like not to say that this is the early stage, but you know, we are living in a continent - I am working in a continent which is 100 million
passengers a year.
So you always have to keep in mind that this is less than one European carrier carries a year, one local so, whatever, so we are head of the
growth, which I am not forecasting to be a booming growth, I think that is slowly, steadily with the rival of equity investments, infrastructure
capacity, this continent will grow GDP per capita, and we are at the moment, when we are contributing this.
So, yes, of course, but in Europe, my frustration, I also had many euros. When you have strikes all over, that's very frustrating, so I am relaxed on
that. We will do it. We will do it.
(END VIDEO TAPE)
GOLODRYGA: And after the break, disruption at London's Heathrow Airport for British Airways travelers. We will have the latest on this developing
story.
[16:30:14]
(COMMERCIAL BREAK)
[16:30:00] BIANNA GOLODRYGA, HOST, QUEST MEANS BUSINESS: Hello, I'm Bianna Golodryga, coming up in the next half hour of QUEST MEANS BUSINESS, Boeing
and Airbus take their battle of the skies to the next level at Farnborough. And Elon Musk says he's sorry for attacking one of the Thailand cavers.
I'll speak to one journalist who's already been targeted by the Tesla CEO on Twitter.
But first, these are the top news headlines on Cnn this hour. U.S. President Trump looks squarely at a reporter who asked if he thinks Russia
is still trying to interfere in American election, and he said, no. But later, the White House says that's not what he meant.
Sarah Sanders says he meant he wanted no more questions, and says the U.S. does believe the Russians are still trying to meddle. The young Thai
football team whose rescue captured the world's attention is finally headed home. Earlier, we saw the 12 boys and their coach leave the hospital in
Chiang Rai, looking a remarkably healthy.
The group then walked into a news conference wearing matching jerseys with footballs in their hands. Boris Johnson says it is not too late to save
Brexit. The former British foreign secretary criticized Prime Minister Theresa May in his resignation speech to parliament. Johnson who quit in
protest at the government's Brexit plan said there was still time to rescue the talks.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, FORMER BRITISH FOREIGN SECRETARY: It is not too late to save Brexit. We have time in these negotiations, we have changed tack
once, and we can change again.
(END VIDEO CLIP)
GOLODRYGA: And let's return to our top story. Google is facing a new threat to Android's dominance of the smartphone market. A record $5
billion fine from the EU for forcing smartphone makers to install Google apps on Android devices. Eighty percent of all smartphones run on Google's
Android systems.
Competitors claim it's using that dominance to monopolize the market place. FairSearch who brought the antitrust suit against Google represents
companies like Oracle, Nokia and Microsoft who once held the record for the biggest antitrust fine from Europe.
I'm joined now by Thomas Vinje; counsel at FairSearch, he's live via Skype from Honolulu, Hawaii. Thank you so much for joining us. First of all,
give me some idea as to why you think this case is a solid one.
THOMAS VINJE, COUNSEL, FAIRSEARCH: Well, Google has imposed its applications and its version of the Android operating system on smartphone
producers and thereby on consumers. And this position should enable competition in that market and our view is competition is fit for
consumers.
GOLODRYGA: And you, as we mentioned in your intro represented some of the other major competitors of Google, also the subject of lawsuits from the
EU. Why should viewers think that you're looking out for the consumers wellbeing and not the other big companies who also went through a similar
lawsuit?
VINJE: Well, and I do represent companies both large and small. I would not wish to hide that at all. But that does not mean that the areas that
my clients have pursued are not in the interest of consumers. And the European Commission will pursue cases only if it includes that consumers
are harmed.
And so it's really finally up to the commission to decide whether it is solid and whether they need to decide the case the way they did in order to
benefit consumers.
GOLODRYGA: And as we know from the stock price reaction, there wasn't much of a reaction from Google shareholders. Google said that they would of
course appeal this ruling. What does that suggest to you? How long of a battle will this be?
VINJE: Well, Google has said it will appeal, the appeal process if they think it may take several years, however, they will be required unless they
receive so-called interim measures to implement the decision within 90 days. So we hope that in a relatively short term, there will be some
effects in the market.
[16:35:00] GOLODRYGA: And this comes at a time when there's so much uncertainty throughout Europe. Whether it's Brexit negotiations, whether
it's trade tariffs with the United States. Is this the time for even your clients now to be facing an additional burden with this lawsuit like the
one that we're seeing in the size and magnitude?
VINJE: I don't believe that any company other than Google faces a burden by virtue of this decision, and frankly, the burden that Google faces is
one that it should have faced up to long ago and which in fact should never have existed.
GOLODRYGA: Why do you think there's such a difference as far as regulations from the EU and the United States when it comes to tech
companies. From the U.S.' perspective, there do seem to be even though they've become a little more aggressive following the 2016 election.
For the most part, they seem to be more hands off. We don't see the same in Europe. Why do you think we have these two different oversights from
the regulators?
VINJE: That's a very good question. I think there's a lots of misperception out there in that regard. First one needs to have a
historical perspective, and the truth is that European Union law on dominant companies behavior has very long been more robust than U.S. law.
Now, one can have debates about whether that's a good or a bad thing, but it has been that way for a long time. And secondly, it's not accurate to
accuse the commission of targeting U.S. tech companies because in fact in every square, European companies are dominant such as in European energy
markets, financial services markets, the European Commission is equally robust in its enforcement which is expected though of dominant companies.
GOLODRYGA: Thomas Vinje, I will have to leave it there, thank you so much for Skyping in, we appreciate it.
VINJE: Thank you, Bianna. And let's go live to London where British Airways is claiming computer problems are creating disruptions at one of
the world's biggest airports Heathrow. Anna Stewart is joining me once again. A busy hour for you, Anna, and obviously this taking place once
again at one of the world's busiest airports. What do we know?
ANNA STEWART, CNN: Well, I'm just grateful that I'm not flying out of here. But Heathrow has had a number of issues. There was a fire alarm
earlier today and a controlled tower was closed, that caused some disruption. Then we believed totally separately IT supply issue.
Now, any disruption at Heathrow as you said, one of the world's busiest airports will have a huge knock-on effect. This is an airport that has
some sort of 210,000 people going through it every day, a flight takes off every 90 seconds, you can just imagine any disruption will cause a lot of
problems.
Now, we are seeing that the IT problems has now been fixed, I'm sure they just have to switch on and off again, that always works to me. But there's
still a lot of disruption there, lots of confusion, we don't know how many flights have been affected, some have been canceled.
We don't know how many passengers, we do know that there're a lot of tweets, people saying that they've been stuck on the tarmac for hours,
people are being told to go and check into a hotel for the night, and some poor people who only have hand luggage went straight QOC and are now stuck
in that no man's land for some hours to come.
I would suggest that if anyone is flying too or from Heathrow, check the website, check your flight and you can always go on Twitter, they're very
quick at replying --
GOLODRYGA: So no indication of terror or something nefarious --
STEWART: Nothing like that --
GOLODRYGA: This seems to be a technical glitch --
STEWART: Bianna --
GOLODRYGA: Yes --
STEWART: And last year as you remember, there was this big issue where there was another IT issue, but that lasted three days and impacted -- left
problem, 75,000 people stranded, it cost an absolute fortune, we're not seeing anything like that at this stage --
GOLODRYGA: Fingers crossed --
STEWART: They've got to get through --
GOLODRYGA: Yes --
STEWART: That dialogue --
GOLODRYGA: Yes, is why we're thinking of all those stranded passengers, Anna, thank you. And after the break, as Elon Musk apologizes to the cave
diver he insulted, we'll talk to a journalist who's also been on the receiving end of his anger. Her articles have clearly settled the Tesla
CEO.
[16:40:00] (COMMERCIAL BREAK)
GOLODRYGA: Tesla CEO Elon Musk has apologized to a Thai cave rescuer for calling him a pedo or a pedophile in an unfounded claim. On Monday, Vern
Unsworth warned that he was considering legal action.
(BEGIN VIDEO CLIP)
VERN UNSWORTH, DIVER: It's not finished.
UNIDENTIFIED MALE: He needs to respect what he did --
UNSWORTH: I believe he's -- I believe he's -- I believe he's called me a pedophile, well, my definition of rescuing 12 young boys, by definition,
that puts everybody in the same context.
UNIDENTIFIED MALE: After everything you've done, how does that make you feel when he goes and puts that out to the world?
UNSWORTH: I'm not going to make any further comments about him, but I think people realize what sort of a guy he is.
UNIDENTIFIED FEMALE: Would you consider taking legal --
UNSWORTH: Yes --
UNIDENTIFIED FEMALE: Action against him?
UNSWORTH: Yes, it's not finished.
(END VIDEO CLIP)
GOLODRYGA: It's not finished. Well, Musk's outburst prompted an open letter from the venture capitalist Gene Munster on behalf of investors, he
wrote "your behavior is fueling an unhelpful perception of your leadership. Thin-skinned and short-tempered."
Elon Musk today tweeted, "I apologize to Mr. Unsworth and to the companies I represent as a leader. The fault is mine and mine alone." Today's
apology has highlighted Elon Musk's treatment of those critical of him. My next guest faces wrath for publishing a series of unflattering scoops on
Tesla.
And this business insider article, Linette Lopez wrote alleging Tesla was spending an insane amount of money on raw materials to make the Model 3S.
Then there was another piece critical of the car maker's brake tests. Musk asked if she had paid for information from the whistleblower and ex-Tesla
employee Martin Tripp.
He tweeted, "did you compensate or promised to compensate Martin Tripp for inside information about Tesla?" In another tweet, Musk criticizes her
relationship with James Chanos; the well-known Tesla short seller. He asked if she had been giving him non-public information and accuses her of
repeating his views verbatim.
"This is not journalism", he claims. Linette Lopez's tweet claims Musk have been going through her Facebook history, something she wants Tesla
investors to consider. And Linette joins me now. Linette, quite a story and quite a history there.
Elon Musk who's credited with so much innovation lashing out so unprofessionally at journalists and inside -- anybody really that even
would question him.
LINETTE LOPEZ, SENIOR FINANCE CORRESPONDENT, BUSINESS INSIDER: And certainly not something that you would expect from somebody who is
confident in what they're doing right now. I have seen -- I've seen internal documents and a lot of evidence to corroborate what I was saying.
I'll repeat again, I still stand by my reporting that Tesla was throwing away about a third of a car to make every Model 3 that it was making. And
I stand by the fact that Tesla stopped doing a crucial brake test while it was ramping up production of the Model 3 car.
To meet a goal that Elon himself set which was to manufacture 5,000 cars a week by the end of last month. This is not something that investors asked
Elon for. This is not something that Elon -- you know, did because the employees wanted to meet this goal. This was an internal goal that he
admitted to "Bloomberg" that he set because he felt he had to prove himself and the company.
And that's something that after 15 years and only making a profit during one quarter in that entire time. Is maybe not something you should focus
on. Maybe you should focus on, you know, that means the margins of these cars.
[16:45:00] You should perhaps focus on perfecting the manufacturing process itself before you turn the cars towards speed mode and turn the process
towards speed mode.
The employees that we've talked to at this insider that I've talked to feel a lot of pressure, they're working long hours, they're pushing to unionize
and Musk has gone after them for that as well.
GOLODRYGA: Why do you think that whether investors, whether just as society as a whole has been giving him so many passes whereas other CEOs
who had similar -- you know, whether there have been scandals involving their personal lives or some things they've said publicly, that was a
career ender for them.
Why do you think he gets so many passes?
LOPEZ: You know, people love people who dream big, and that's the answer I've gotten from, you know, random, people on the internet who don't share
-- who don't have a share of Tesla or even a car to -- you know, guys on Wall Street who are along the stock, they just love the idea that he is an
innovator, they have this conception that he is Tony Stock, that he is this iron man figure.
The reality is, you know, Tesla is a very small company. People compare it to companies like GM, in fact, it has a bigger market cap and --
GOLODRYGA: Yes --
LOPEZ: You know, huge companies like Ford. But the reality is, you know, they haven't even made 200,000 --
GOLODRYGA: They're investing, I guess --
(CROSSTALK)
They're investing in potential and somebody who dreams big --
LOPEZ: Exactly --
GOLODRYGA: Is an innovative genius, but on the other hand has shortcoming and has acknowledged them and hopefully this letter from Gene Munster will
put the Twitter aside, maybe he'll learn his lesson --
LOPEZ: I sincerely doubt it --
GOLODRYGA: You're skeptical --
LOPEZ: I'm very skeptical --
GOLODRYGA: Hoping to end on a positive note, but great to have you on because it really is important to go through and not only this recent story
and scandal involving the cave and accusing the rescuer of being a pedophile, but also the -- I would call harassment you received as well.
So Linette, thank you for coming on. Thank you to you, thank you.
LOPEZ: Thank you for having me.
GOLODRYGA: Well, Amazon's Prime Day started with a series of glitches and ended with record sales. All the numbers and what it means for the world's
wealthiest man, that's coming up next.
(COMMERCIAL BREAK)
GOLODRYGA: Well, Amazon's Prime Day is over and the tally is in. One hundred million products sold over 36 hours. Amazon's biggest ever
shopping event. Amazon shares closed flat, that means Jeff Bezos' net worth stays at a cool $152 billion, still the richest man alive.
His fortune rises and falls with Amazon's share price. The fortunes of the richest people in history rose and fell along with empire. So let's check
in with our rich list. There's Mansa Musa; king of Timbuktu, the world's largest producer of gold, his wealth has been described as incalculable.
The Roman Emperor Augustus Caesar who owned about one-fifth of the empire, you don't need a lot of those coins to get his net worth of around $5
trillion.
[16:50:00] Moving down the list, quite a few places, we have Andrew Carnegie; the sale of his company U.S. Steel be equivalent of $400 billion.
So here with more on Jeff Bezos' quest to get himself on this list is Clare Sebastian. Not too shabby, $150 billion, what do you do with all that
money Clare Sebastian?
CLARE SEBASTIAN, CNN: Well, that is what I've been trying to find out about Jeff Bezos because there has been some controversy around what he's
been doing with it. There was -- you remember the giving pledge, it was something set up by Bill Gates and Warren Buffett, so billionaires to give
half their wealth away.
Jeff Bezos did not sign up for that, and that prompted some controversy. So he says that I'm going to crowdsource some ideas, said that about a year
ago. And just last month, he said that I found a couple of ideas, I'm going to announce them later in the Summer.
But that's not only dealing with it, because he also -- interesting you mentioned empire. Jeff Bezos also has an empire and one of those parts of
the empire is Blue Origin; his aerospace company. He had said and into earlier this year, the only way I can see to deploy this much financial
resources is by converting my Amazon winnings into space travel.
So he is liquidating about a billion dollars in Amazon stock every year and investing that in Blue Origin. He feels that is something that can benefit
human race long time.
GOLODRYGA: Yes, and also healthcare as well, taking a crack at revitalizing and remolding healthcare --
SEBASTIAN: Yes --
GOLODRYGA: As we know it in the country. Then there's Wal-Mart -- I mean, I'm sorry, there's Whole Foods --
SEBASTIAN: Yes --
GOLODRYGA: That he's gone after and source like Wal-Mart and every other retailer now trying to catch up with what Jeff Bezos is doing. He's got
his hand in just about every single sector at this point.
SEBASTIAN: Right, and that is -- I mean, rating when you look at the empire he's got. Amazon, he's got the "Washington Post", he's got Blue
Origin, but it's really the growth that Amazon that has fueled this gain in wealth. The stock price is risen by about 80 percent in the last 12 months
and that's really happened as they've invested to expand things like Whole Foods really shook up the entire retail space.
You said healthcare as well as a joint venture with JPMorgan and with Warren Buffett as well. And they keep acquiring new companies and moving
into new areas. And I think the size and scale of this company, now they employ half a million people, it's something that has the power to shake up
pretty much any part of any industry pretty much, that's what you see.
GOLODRYGA: What if anything would be the company's biggest vulnerability at this point?
SEBASTIAN: So I think there's still -- the investment is still something that shareholders are looking at. They continue to invest very heavily in
fulfillment. And this is a very interesting point because this week we've seen strikes at some of their performance centers across Europe and Spain
and Germany.
And I think we've got some pictures of those because that was really fueled partly by the increasing perception of Jeff Bezos as well. You see Musk of
a man, I think people are looking at him and thinking well, as you get increasingly wealthy, why isn't it stricken down to employees.
Because Amazon says they do provide, you know, good wages and benefits to their employees, but certainly he's going to face increasing scrutiny on
this score as his wealth continues to rise and certainly as they continue to expand this giant fulfillment network which is really at the heart of
their business and their success.
GOLODRYGA: On record Prime Day even when they had seven-hour glitch --
SEBASTIAN: Right --
GOLODRYGA: Incredible. Clare Sebastian, great to see you, thanks for coming on set with us. And an annual race to sell the most airplanes,
Boeing and Airbus seem to be both coming out as winners. Deals at the Farnborough Airshow have already topped $100 billion at list prices.
With the two giants leading the way, smaller competitors have decided it's better to join them if you can't fight them. Richard Quest reports from
the air show.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN (voice-over): The brand new Airbus A220 soaring and twisting in ways that would then settle the most frequent of flyers. The
A220 at the heart of the biggest shake-up in global aerospace in decades.
(on camera): It's not a regional jet, this is a full size aircraft.
UNIDENTIFIED MALE: Absolutely, it's 150-seater, you've got a range of more than 3,000 nautical miles.
QUEST (voice-over): This plane which recently joined the Airbus stable both as the dominance of the duopoly Airbus and Boeing. A deal with
Canada's Bombardia's bought the plane which was then called the C-Series. Airbus rebranded it the A220, and now Airbus owns nearly 60 percent of the
narrow body jet market.
You're expecting it will sell better now as part of Airbus.
UNIDENTIFIED MALE: Absolutely.
QUEST: With Airbus buying the C-Series, last month, Boeing announced a takeover of the passenger jet business of Brazil's Embraer Air. The deal
is now awaiting approval.
(on camera): You did your deal with Bombardia, Boeing immediately had to do that deal with Embraer, but you awfully can't be beaten.
UNIDENTIFIED MALE: We were not surprised by that, but I'm damn sure we have a better aircraft and that is what counts.
[16:55:00] QUEST (voice-over): Having swallowed up smaller rivals in a tit-for-tat series of mergers, the smaller competitors simply can no longer
match the strength of Airbus and Boeing.
(on camera): You must be sad to be leaving -- to losing this part of the company. There must be a sadness to it.
PAULO CESAR DE SOUZA SILVA, CHIEF EXECUTIVE OFFICER, EMBRAER: Well, it's yes and no. Because this is the opportunity for Embraer Air to grow in
Brazil. So we will have much more access to market. So we will sell more of these machines here.
QUEST: Selling more machines to be sure it's not clear though who is the boss. Are you starting to see airlines and customers showing more
interest, now that they're starting to realize it's backed by Boeing.
UNIDENTIFIED MALE: Well, I think with time certainly, they'll see that. I mean, there's no question that we'll be able to deliver more value to the
customer at the end of day together than even if we can't separate.
QUEST (voice-over): The behemoth continues to rack up orders to find formidable challengers in the future, they may have to look east.
UNIDENTIFIED MALE: The duopoly was not given by God, it exists only since the late 90s. So some good 20 years, and at some point, I think the most
serious challenge will be the Chinese.
QUEST: China as a challenger is still some way off Boeing and Airbus. The duopoly has been strengthened, the competitors couldn't compete. Richard
Quest, Cnn at the Farnborough Airshow.
(END VIDEOTAPE)
GOLODRYGA: And if you want to keep on top of the day's business headlines in just 90 seconds, then try our daily briefing podcast, it's updated twice
a day before and after the bell rings on Wall Street. You can just ask Alexa or your Google home device for your CnnMoney flash briefing every
weekday.
And that's QUEST MEANS BUSINESS, I am Bianna Golodryga, the news continues here on CNN.
(COMMERCIAL BREAK)
