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Quest Means Business
Donald Trump Has Been Speaking About Trade; Google Employees The World Over Have Been Walking Out In Protest Of The Company's Own Policies Over The Way It Treats Sexual Scandals. Aired: 3-4p ET
Aired November 01, 2018 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, HOST, QUEST MEANS BUSINESS: We are in the last hour of trade. Today, the program coming from the New York Stock Exchange. And
look at the markets. You'll see the Dow is up. The NASDAQ is up sharply and the broader market is up even higher. So we need to understand what's
driving the day and we're talking about tonight.
Donald Trump is talking trade with President Xi and things are going well. The market likes what it sees. Google staff worldwide have been walking
out over harassment scandals and how the company has handled it. South Africa still haunted by corruption. We have the former Finance Minister
joining me, Trevor Manuel we'll talk about him and of course, we'll get your views. So live from the floor of the New York Stock Exchange on
Thursday, it's November the 1st. I'm Richard Quest, of course, here I mean business.
So we decided with there being so much in the markets at the moment, the best place for us to be today and tomorrow was down here in the markets and
you will see exactly what I mean. Just look at the markets so far.
The Dow is up the best part of 200 points. It's a gain of 0.8 of a percent, just under 1%. Same for the S&P 500. The NASDAQ is higher and
the FAANGs - the FAANG stocks are storming ahead. FAANG is up over two and a quarter percent, all at the same time as we are going to get results from
Apple after the bell.
Now, Donald Trump has been speaking about trade. He said in a tweet earlier. He said, "Just had a long and very good conversation with
President Xi Jinping of China. We talked about many subjects with a heavy emphasis on trade. Those discussions are moving along nicely with meetings
being scheduled at the G20 in Argentina."
Clare Sebastian is in New York. The tweet doesn't say much other than that they spoke, but it has been the catalyst for what we are seeing today.
CLARE SEBASTIAN, CORRESPONDENT, CNN: Yes, Richard, this is very important. The line, "Those discussions are moving along nicely," I think
is the key one here, because what we have been hearing certainly from the administration over the past couple of weeks is that the lines of
communications weren't really open at all. They didn't not go as far until recently of guaranteeing that they would meet on the sidelines of the G20.
So this certainly goes further than that.
The two sides, don't forget, Richard have not met since August, so there has been quite a lot of pessimism around this trade war priced into the
market and especially throughout this earnings season as we have seen the likes of Caterpillar warn about rising costs.
So we are seeing that play out today in some of those trade sensitive stocks -- Caterpillar, Boeing -- all up on that news today.
QUEST: And if we take that that's reason for today that is up, but Tuesday was - Wednesday was also higher. Tuesday was higher. Monday fell off a
cliff. So if we strip out the extremes volatility on either end, Clare Sebastian, where do we end? What direction do we up with for the market?
Ignoring the extremes of volatility?
SEBASTIAN: Well, Richard, I think a lot of people believe after the wild and steep declines that we had in October that there are people coming back
in to hunt for bargains. As you were talking earlier with Peter Tuchman about the fundamentals of the economy, it is still strong and overall,
earnings haven't been too bad at all.
Looking at the FAANGs, we've had some disappointment there, but Facebook certainly lifting sentiment this week and the same can be said for GM on
the consumer side of things.
QUEST: So factor now into this maelstrom of difficult markets, factor in the midterms next Tuesday. Now, on markets now yesterday, we had the view
that a President in his third terms tends to do well in the markets or markets tends to do well, but your research shows what happens if it is a
Democrat wave versus a Republican route.
SEBASTIAN: Right, the most likely outcome according to the polls in CNN's research, the moment is that the Democrats will take the House back from
the Republicans. The Republicans will keep the Senate. Now, this could lead to a variety of outcomes. But the central one of course is gridlock.
That means legislative stalemate. The Democrats would have a hard time passing new legislation because that would need to pass both Houses. They
would also have a hard time undermining old legislation. Tax cuts is a key issue. They probably would not be able to repeal the Trump tax cuts, but
they would be able stall new ones coming through. One key issue, oversight, Richard. They would be able to investigate in the committees
various controversies related to the President and trade is another uncertainty, would the Democrats get on board and vote for the new NAFTA
deal. That is the big question.
QUEST: The new NAFTA terms. Clare Sebastian, thank you -- tariffs and trade -- very much an issue in the midterm elections in certain key seats.
[15:05:01]
QUEST: For example, the seat of Missouri, the state - it's a tight Senate race that could tip the balance of power. Now, Chris Pratt runs the major
factory in Missouri and earlier on "Quest Means Business" a few months ago, he warned US tariffs could kill his company.
(BEGIN VIDEO CLIP)
CHRIS PRATT, GENERAL OPERATIONS MANAGER, MID CONTINENT NAIL: Our company is losing money month in and month out since June and now, it's just a
matter of time if we do not receive the exclusions we filed for, a company can only lose money so long.
(END VIDEO CLIP)
QUEST: Chris Pratt joins us once again to update us at this crucial time in the electoral calendar. First, Chris, how is your company weathering
the tariffs that you have had to deal with? Because I am imagining by now, you have put in place measures that at least mitigate the worst effects.
PRATT: That's correct. We are managing our business day by day, doing what it takes to be as efficient as possible. Still, you know, we're
employing people that we don't need for our current order bookings, but we feel those people are crucial to keep on board. And you know, we believe
that we're getting close to the end of this battle. We're almost 140 days now. We're hoping that we are seeing the light at the end of the tunnel
and the decisions that we've made set the company to lose the least amount of money as possible on a monthly basis.
QUEST: Look, when you put it like that, lose the least amount of money on a monthly basis, I mean, that is stark facts of economic reality that you
now have to factor into the Missouri Senate race, which in its own way, of course, is a referendum vote on the President and his trade policy. You
can't divorce the two, Chris, can you?
PRATT: No. I mean, the Missouri Senate race, of course, has turned into a big race and I think trade is playing a major, major factor in that Senate
race, and you know, my comment has been in the middle of that tariffs trade issue. You know, both the Democratic incumbent and Republican running
against her have both told Mid Continent Nail that they are doing everything they can for us, that we make a good case, that they believe -
both of them believe we should receive our exclusions. So, they are using it - it's a campaign tool.
QUEST: But the fact that you haven't even got your exclusion yet from the tariffs because the Commerce Department and the various authorities are
taking so long and, of course, there's the opposition from the established US steelmakers. would you - do you think for someone like yourself, it is
hard to vote for a Republican in the Senate race bearing in mind what the Republican president has done to your firm?
PRATT: I'm not letting that make a determination of how I vote. Of course, you know, the longer this goes on, the worst it gets for our
company and things change. You know, my views change and my beliefs change. So in the end, by the end of next week, by the middle of midterm
elections next week, it could have an effect on the way I vote, yes.
QUEST: That's dodgy, sir. We've adopted your company whether you like it or not, sir, and we will continue to follow your trials and tribulations
and the difficulties you face through the tariffs. Thank you for joining us, sir.
Now, as we continue. You don't need to see the look on the faces here to know how they feel. Google employees the world over have been walking out
in protest of the company's own policies over the way it treats sexual scandals. And Spotify wants to be the "S" on the end of FAANGs, however,
if you look at the way the company's results and the way it trades in the market, you have to ask whether that is realistic. It is "Quest Means
Business." We are live at the New York Stock Exchange.
[15:10:00]
QUEST: Welcome back to "Quest Means Business" from the Stock Exchange. Spotify trade is just over on the citadel, which is the GMM for the stock.
It's down roughly 10% to 11% on disappointing numbers. Samuel Burke joins me. The interesting if you look at the SApotify price, it is not that much
different. It's only marginally above its IPO price now which of course is giving some - or at least the opening price after the IPO, but the results
which I saw today. They were not brilliant, but they weren't dreadful either.
SAMUEL BURKE, BUSINESS AND TECHNOLOGY CORRESPONDENT, CNN: No, they were not terrible at all. In fact, they are right in line with what people were
wanting. Analysts were expecting them to add a few million users and that is what they did. And in fact, if we take a look at the numbers. If we
look at Apple versus Spotify for instance, they are paying subscribers. Spotify is way ahead of Apple. Just look at the numbers, Richard, 109
million now versus 50 million. We are talking about paying subscribers.
The problem here and the reason the stock went down, it's all about the margins, the margins, the margins. Spotify says that they are going to
needs more money for research, development as well as content. That is not what investors want to hear.
And Richard, I have got to tell you for a long time, tech journalists, more than the analysts have said over and over again, including on this show,
that it's going to be very hard for Spotify to compete against the players like Apple because Apple just has unlimited amounts of money to do
research, development and content. So this is where the music stops playing for Spotify when it comes to those margins.
QUEST: Right, but I suppose they have to offer a better service and as you say, all of the costs that go into that. Apple reports after the bell.
We've had two real bites of the Apple, obviously with the iPhone rollout and now the computers - the Macs. The numbers will be important but not as
crucial, Samuel, as say for example the Christmas quarter.
BURKE: Yes, I think the numbers here are kind of weird in a way because on the one sense, even if there are soft numbers, it just used to be - look at
that iPhone number, that would tell you everything, it doesn't anymore. It's more about the average price paid for the phone. Keep in mind that
the iPhone - the kind of cheaper iPhone, I can't believe I'm saying cheaper when I am talking about the $799.00, but that phone, the XR wasn't
available yet, so if you wanted the new phone, if you wanted to be chic, you had to go for one of the more expensive phones. Those are the numbers
we are going to be looking at and we'll be discussing over the next 24 hours because even if people don't buy as many, if they keep on paying more
for these phones, $1,000.00 or more, that's great for Apple's investment and some people are saying, some analysts think that a good performance
from Apple here is strong performance, good turnaround, not just the tech market, but the market in general. Very high expectations, I'd say.
QUEST: I want to go back to Spotify if I may. Take somebody like myself. Obviously, I have got an iPhone and an iPad, although I'm more in the PC in
terms of my computer at home and I use Spotify ...
[15:15:04]
BURKE: We know.
QUEST: Thank you and I use Spotify for music at the beach on my iPhone. Now, Samuel Burke, what would it take to get me or you or Anna Myer to
switch from Spotify to Apple?
BURKE: Before I would have had the answer, Taylor Swift. Someone like that that was only available on one, not the other, but I am going to
surprise you and not use any of those companies you've just mentioned. Look at Amazon, Richard, when you pay for Amazon Prime, you're getting
their streaming product that competes with Netflix - their video product. You're getting the free shipping and you're getting a music service.
I told Hala Gorani to switch because she was paying for all of these services. She didn't even know she had music service with Amazon Prime.
She stopped paying for Apple Music and just used her Prime subscription. I think that Amazon is the real competition for Spotify in the long run and a
lot of the tech journalists look at the ecosystem that Amazon has built and that could have the power to put not just Spotify on pause, but Apple Music
as well.
QUEST: Fascinating. Samuel, thank you. I learn something new every day from you.
Google, the walkout. The word walkout - well, if you look at walkout on - if you Google walkout on Google, Google itself comes up as the main one.
Why? Because there was a major walkout at Google today.
Protests over sexual harassment, another executive resigned and the staff as they walked out from various Google offices around the world explained
why.
(BEGIN VIDEO CLIP)
SAM DUTTON, DEVELOPER ADVOCATE, GOOGLE: There was a walkout from some members of staff and we are walking out in support of those who have been
harassed anywhere in the workplace and to ensure that perpetrators are not rewarded and are not protected.
(END VIDEO CLIP)
QUEST: Hadas Gold is in London, Laurie Segall is in New York. Hadas, first to you, what were they saying? I mean, the reasons that most of them
were leaving?
HADAS GOLD, CORRESPONDENT, CNN: Right, I mean, Richard, a lot of this came as a result of that damning "New York Times" article that talked about how
several Google executives had resigned from the company after sexual harassment allegations, but that Google did not reveal those allegations
and in cases, even paid them millions of dollars in severance packages.
Then they all came out in the article, and these employees were protesting how Google handles sexual harassment allegations in the past. They called
for example for an end to forced arbitration. They called for a sexual harassment transparency report. And they said that they don't want to see
what was alleged in that article happen again where high ranking male executives are somehow seemingly rewarded with these big severance packages
after being accused of sexual harassment.
QUEST: Laurie Segall in New York, you're very close to the company and to the tech industry. Is Google much worse than everybody else? I mean, 48
or so people have left under a sexual scandal cloud. But is the company any different than other companies or they just do a better job, if you
like, of rooting them out?
LAURIE SEGALL, CORRESPONDENT, CNN: Loo, I think a lot has happened over the last years. It's coming to light, particularly in the tech industry,
there is a lot of frustration that isn't okay. I think Google, it certainly appears as though they have had a pretty bad problem, but other
tech companies have as well.
Look no further, Richard, than Uber in the last couple of years in its engineer coming out with some horrific allegations you had, you know,
something similar happening to one of the executives leave there and get a multimillion dollar payout.
I actually had the opportunity to speak to Salesforce CEO, Marc Benioff. He is very plugged in in Silicon Valley, a leader of one of the largest
tech companies and I asked him how he felt about all of these employees at Google walking out. Take a listen.
(BEGIN VIDEO CLIP)
SEGALL: You have women at Google walking out. Do you think you're going to be picking up any new employees?
MARC BENIOFF, CEO, SALESFORCE: I believe very strongly in gender equality inside the tech industry that this needs to get amplified and if you're
committed to gender equality in your company and that's one of your core values, well, then you better act and behave that way. But you can't say
we are for equality on one side and then allow sexual harassment to be rampant in your company on the other side. That is incongruent.
SEGALL; What is your message to the women of Google right now?
BENIFOFF: I'm with you. I'm with women who feel that they need a voice or an advocate for equality. I have said that over and over again. I'm with
everyone. That's one of my core values as a human being. So I'm with anybody who is fighting for equality.
(BEGIN VIDEO CLIP)
QUEST: So Hadas Gold, you hear the situation. Is it your feeling from speaking to the Google employees that having made their point that the
company will now - and we heard what the CEO said. The company is going to have to come back with some real proposals.
HADAS GOLD, CORRESPONDENT, CNN: Well, yes, that's the question now is what happens next?
[15:20:03]
GOLD: So as you noted in a statement, Google's CEO, Sundar Pichai said that earlier this week, we let Googlers know that we are aware of the
activities planned for today and that employees will have support they need if they wish to participate. He went to say that he was open to hearing
their criticisms and their feedback and that they were going to put those into new ideas going forward.
But yes, the question is what will those ideas be? Are they going to end arbitration? Are they going to issue the sexual harassment transparency
report that these employees are demanding? That is all what these employees are going to looking for and one employee that I spoke to said,
it is great that the corporate level is talking about this. But what they want to see is here on the ground and all of these offices around the
world, real action take place where these sorts of things just won't happen anymore and this is something that's happened as Laurie said, across the
entire tech industry.
QUEST: Laurie Segall, finally a reality check for us, please. Those in Silicon Valley, do they really care about the issue or are they much more
concerned about the tech IPO de jour and how to cash in?
SEGALL: Well, the good news, Richard is they at least have the company line on this and I think you have Google employees walking out and that's a
big deal because they have to have the best and the brightest talent and employees increasingly in Silicon Valley are pretty influential in shaping
the decisions at their companies make.
But let me tell you what is not being said. What's happening at the dinner tables and behind closed doors in Silicon Valley because I just spent a
month and a half out there. And you know, there is the talk and I hate to hear this, but there is the talk of things are so divided, should we not
risk meeting a woman and by the way, this is real. I mean, this actually - people actually say that should we not risk meeting a woman off hours or
having dinner? Should we make sure that we don't actually cross this line because it is just too sensitive right now?
And you almost have this fear. I spoke to the Uber CEO recently and I said, "What are we not saying?" And he said, "What we are not saying, as a
lot of people, even here at Uber are afraid to make mistakes." So it's almost is getting a little bit more divided, so it's - when I say, it's
rough out there. It's rough out there. I think there's a lot of anger, a lot of women, a lot of employees who feel like this has gone on too long.
I think seeing those numbers, that $90 million payout, is very upsetting and I think there's a larger problem of what's not being said which is that
things are potentially getting a little bit worse with folks kind of going into their corners and saying, I want to make sure I don't make a mistake
and women not getting some of those same opportunities which is leading to the frustration in the first place, Richard.
QUEST: So now, Laurie Segall, you end up with the ultimate catch-22.
SEGALL: Yes.
QUEST: And how does one address that? And it is not just in of course - it's not just in technology. How does one address the position where the
protests, well-meaning and well-founded, engineer a situation that's not worse than before, but certainly creates nothing better?
SEGALL: Look, I think at the end of the day, some of what Hadas was talking about, some of these specifics where maybe there will be a sexual
harassment transparency report. There will be actual numbers they have to fill. I think that is a step in the right direction to have really these
tangibles.
And then I think the other thing I will say is maybe we've got to start having some of these uncomfortable conversations about what is happening
culturally, too. And I think that's going to be really important because you don't want some of the stuff, you don't want these executives. It is
not fair for some of the high level management to say it is not worth our time to do this.
I think we've got to start putting out there a little bit more and having those conversations, Richard.
QUEST: Hadas in London and Laurie in New York, to both, thank you. Let's stay with Google because Google has been telling me about its plans in
Africa and how Google Kenya wants to drive economic growth in the country.
The head of Google in Kenya is Charles Murito and he says their success is tied to the company's success. Now, last week when I was in Nairobi, I sat
down with Mr. Murito and obviously, it was before these latest revelations and walkouts. So we didn't get the opportunity to discuss the sexual
harassment issue. But it did give me a chance to talk to him about what Google believes is the right way forward in Africa.
(BEGIN VIDEO TAPE)
CHARLES MURITO, HEAD OF GOOGLE, KENYA: Kenya is part of the sub Saharan Africa's three main countries. We have South Africa, Nigeria and Kenya and
we are consistently working to really ensure that we make sure that we have as many users in those three countries and everything around those
countries. So each one of those three supports the neighboring countries as well.
QUEST: So what's Google's game here? I mean, obviously, you are selling search and you're telling me the other products of YouTube and the like,
but what else do you want to do here? What plans? Because you wouldn't to be part of the infrastructure.
MURITO: So the first thing is actually to make sure that we unblock some of the challenges. So the three main challenges that we've encountered.
[15:25:03]
MURITO: Access is a big, big challenge. We have also seen the cost of data is a big challenge and the cost of devices. So we are working very
closely to build access and infrastructure so we have a joint venture called C-Squared that goes out and builds fiber infrastructure across metro
areas in Africa and that lays the actual foundation.
On the device side, we are working with manufacturers to make sure that they get better devices at lower prices. And then last but not least is
the cost of data. So working very closely with telcos across Africa to see how they can lower the cost of data to the average citizen.
QUEST: Finally, what does Google want to be in the country? What do you want out of it besides obviously, commerce, what part do you want to play?
MURITO: Last week, we just had Google for Kenya and I think it encapsulated what we want to be. One, we want to be seen as a Kenyan
company that cares about Kenyans and Africans at large and ensures that we drive economic empowerment because at the end of the day, if we do not work
within this community and ensure that people are thriving out of it, then we cannot succeed.
Our fate is tightly, tightly tied to the success of the countries we work in. So for instance, in Kenya, just last week, we announced a $1 million
grant to train 100,000 farmers on digital skills. In Kenya, farmers - small scale farmers contribute to about 40% of the economy and so we
believe that that is the kind of space that we need to help drive knowledge and empowerment to be able to empower those people.
So once they have more disposable income, they can use our products. But at the end of the day, we have to be part of the community.
QUEST: Thank you very much.
MURITO: Thank you, Richard.
QUEST: Very nice drink. What is this called?
MURITO: This is a dawa. Cheers.
QUEST: Dawa. Cheers.
(END VIDEO TAPE)
QUEST: It's not nearly as exciting as perhaps I've made it sound there. Lemonade, ginger and fresh lemon or some combination - all beautifully
heated up. When we come back, the problem in Nairobi, the city wants to go green and the public wants to get from A to B, which is why electric taxis
are prove to be such a hit. We will talk about it after the break. It is "Quest Means Business" today, I'm live from the Stock Exchange.
[15:30:00]
(COMMERCIAL BREAK)
[15:30:00] RICHARD QUEST, HOST, QUEST MEANS BUSINESS: Hello, I'm Richard Quest at the New York Stock Exchange today. There is more QUEST MEANS
BUSINESS in just a moment. We're going to talk about one of the bad boys of Brexit, he is in trouble with the law. But what does that actually mean
and how we go?
Oh, you're over on that side, there we are, turned around one moment, it's all changed. We'll meet the chief executive who wants to run 100 marathons
in 100 days. You are watching Cnn, and on this network, the facts always come first.
In Indonesia, the flight data recorder has been recovered from the Lion Air 737 jet that crashed has now been received and arrived. Information from
the device could be key to discovering why the nearly new Boeing aircraft lost altitude and crashed into the Java Sea on Monday, killing all 189
people on board.
The man accused of shooting to death 11 Jews inside a Pittsburgh Synagogue appeared in court and entered a plea of not guilty a few hours ago. Robert
Bowers requested a jury trial. He faces 44 different charges, 32 of which carry the death penalty.
Donald Trump is expected to announce changes to the U.S. immigration policy when he speaks at the White House in the next hour. Sources are telling us
the president wants migrants seeking asylum to be required to visit legal points of entry into the U.S. They would be denied asylum if caught
crossing the border illegally.
Turkey's Justice Minister says he doesn't expect the country's chief prosecutor will travel to Saudi Arabia in order to investigate the death of
Jamal Khashoggi. Turkish officials have criticized the level of cooperation shown by Riyadh. The Justice Minister says Saudi officials
have yet to answer key questions about the killing.
And New York City police say they have not yet determined the cause of death of two Saudi Arabian sisters. Their bodies were found last week
bound with duct tape and dumped in the Hudson River. Authorities say there were no signs of trauma and all possibilities are being actively
investigated.
We are now just 28 minutes from the close of day here at the New York Stock Exchange. Let's have a look at the markets. Update here, I'm just going
to look over here, forgive me if I turn my gaze from you while I just lean out and over and see the board.
The Dow is now up 222 points, so the Dow is extending its gains, it's up nearly 1 percent, the Russell is also higher by 2 percent, the S&P 500 is
up the best part of 1 percent as well. It is oil that is down sharply and gold that is also rising. So there are many and fascinating undercurrents,
if you like, not trends, there are undercurrents of the market, which has seen a Tuesday, Wednesday, Thursday strong rise, strong gains on the back
of a Monday 500-point fall.
So to our special coverage this week of Kenya, particularly Nairobi. Eko - - Nopia is going places, it's got big plans for East Africa. It's electric cab hailing company. And it's already on the road in Kenya's capital.
Cnn's Farai Sevenzo went to try it out.
(BEGIN VIDEOTAPE)
FARAI SEVENZO, CNN CORRESPONDENT: Nairobi is a city even under the weight of traffic. Thousands also work as taxi drivers, ferrying Nairobians
across the city. And digital taxi ride-sharing apps like Taxify and Uber have become part of the terrain here.
In September, the government slapped an 8 percent tax on petroleum products to raise money. The rise in fuel prices has hit taxi drivers hardest, but
not slowed down the city's hectic congested traffic.
RONNY WAIYOKE, TAXI DRIVER: A lot of us, everybody in this country really depends on fuel, everything has to be tangled with fuel. Being the
president and he is an economist, he should have found some other way --
SEVENZO: Some other way --
WAIYOKE: Yes, so --
SEVENZO: So people are unhappy?
WAIYOKE: Me being one?
SEVENZO: Yes --
WAIYOKE: I'm very much not happy.
SEVENZO: Yes, would you consider driving an electrical car?
WAIYOKE: That would be the best thing that has happened to me since the birth of my son.
SEVENZO: Besides worrying about the cost of fuel, some taxi drivers like Ronny have steadfastly refused to go digital and embraced the likes of
Uber.
WAIYOKE: With the traffic in Nairobi right now, Uber is not the option. It tells you it's going to take five minutes to get here, it takes 30
minutes. So what do you -- what choice do you have? You have to take the cab that is there.
[15:35:00] SEVENZO: Yes --
WAIYOKE: The traffic in the city, it is giving the common taxi an advantage over the Uber.
SEVENZO: But now there is a new player in town which might be able to answer Ronny's prayers. Ordinarily, Nairobi is a city bedeviled by
traffic. Taxify, Uber, all these taxi companies are here in this great East African city. But now they face new competition from Nopia; the
Finnish electric taxi company has arrived in Nairobi with a spark.
Twenty six-year-old Phillip has moved his taxi driving from Uber to Nopia. We asked him why?
PHILLIP NGARI, NOPIA RIDE DRIVER: I've moved to Nopia really because it's an electric ride. So there are a few advantages that I get driving an
electric car. One of them is I don't have to use fuel in this car. And there no fuel is really the biggest factor in Kenya.
So if you take fuel out of your calculations, then your earnings, your profit margins at the end of the day really are very good and attractive to
a driver.
SEVENZO: Do you think that many taxi drivers in Kenya and Nairobi is full of taxi drivers --
NGARI: Yes --
SEVENZO: Do you think they will migrate to using the Nopia electrical car?
NGARI: Definitely, because just that right now, we are just a start-up company, but the interest that other taxi drivers are showing us is really
high. Because even if you go to town, the air really is congested with smoke from Matatus and even these cars.
So really, if you go electric and you have a city that really doesn't have any air pollution, then of course, it's very advantageous to everybody in
the society. You step on the accelerator and you go.
SEVENZO: Phillip, you like this car too much?
NGARI: Yes, I like this car. It's like my own personal Lamborghini.
(LAUGHTER)
SEVENZO: It's just a Nissan Leaf.
(LAUGHTER)
Electric, petrol or diesel, all cars will soon have to negotiate Nairobi's intractable traffic. Farai Sevenzo, Cnn, Nairobi.
(END VIDEOTAPE)
QUEST: I have the answer. When in doubt of the traffic is too bad, start running. Join in, this lady is going to be running constantly for the next
100 days, a 100 marathons in a 100 days, why? After the break.
(COMMERCIAL BREAK)
QUEST: All right, running one marathon is hard enough. This lady intends to run a 100 of them, she is the Chief Executive of Thirst Mina Guli, and
starting with this weekend's New York marathon, another 99 after that.
[15:40:00] Why are you running a 100 marathons in 100 days?
MINA GULI, CHIEF EXECUTIVE OFFICER, THIRST: It's very simple because I want to change the world, and I want to show what it means to be 100
percent committed to something. And in my case, solving the global water crisis.
QUEST: Right, but you were in commerce --
GULI: Yes --
QUEST: You have a history World Bank, Chamber of Commerce, China, what happened that made you decide that Thirst, which is the foundation you've
set up was the way to go?
GULI: I realized that it's all very important to be committed to making money to creating corporations, to creating sustainable long-term
organizations. But the real key to that is ensuring that you have enough resources to be able do that. And one of the biggest risks to our
societies, to our economies, to our growth as a community is water. And decided if there's one thing I was going to do would be to fix this water
crisis.
QUEST: Does it seem strange to talk about fixing crisis at the home of capitalism, the New York Stock Exchange, where I'm sure cynics and leftists
would say half the problem started with the companies in this room.
GULI: The great thing about some of these companies is that they can also be part of the solution. The reality is that these companies have massive
reach, they have massive opportunity, all of them have large numbers of employees. And as companies like this, like some of my partners like
Colgate and others, they stepped up to the plate and said water is a risk and we need to fix this.
QUEST: Just so you can now hear a lot of cheering in the background.
GULI: Cheering my marathon.
QUEST: Yes, they're cheering -- I'm guessing it's either somebody -- it's some anniversary or somebody leaving or some other -- the Exchange gets
very excited about these things. So a 100 marathons in 100 days. How are you going to do it?
GULI: So I mean every -- the way you set up to do everything, whether it's starting a business, solving any problem, big or small, basically starts
with a single step. So every day I wake up and I go for a run and it happens that the run is a marathon. Along the way, it's very important to
me that I talk to people, I talk to companies, I talk to business owners --
QUEST: But once you start each day --
GULI: So --
QUEST: You're going to keep going? I mean, you don't stop to have a chat with somebody on the way?
GULI: No, usually, what happens is people do come along, sometimes I feel a bit like Forrest Gump, people join me along the way, I think you're going
to join me at least one or two --
QUEST: What sort of --
GULI: Change(ph) --
QUEST: What sort of speed will you be jogging out?
GULI: Like this, very slow -- yes, I'm not a speedy runner by any stretch of the imagination --
QUEST: How are you going to do 26 miles, 26.2 miles, a 100 of them? Because you've got to get also from place to place to place. What's the
farthest distance that you've got to go between runs?
GULI: So I'm going to fly across -- I think the farthest distance is from South Africa to Australia. I leave South Africa at lunch time and I'll
land in Australia at 3:30 in the afternoon, and I have to run a marathon before midnight after I think we fly for 14 hours --
QUEST: So hang in, but it starts before midnight or complete it?
GULI: I have to complete it because I have to run a marathon every single day. The idea is that we run one marathon every single day without
stopping, without failing, for 100 days.
QUEST: Yes --
GULI: That's what a 100 percent commitment looks like.
QUEST: So it's actually, that's the 100-100.
GULI: Yes --
QUEST: But here's the -- I've heard of this sort of thing being done before. And I know from covering those things, it is unbelievably arduous.
It sounds great on day 2, 5, 10. But once you get to day 76, day 83, day - - I mean, what's your biggest fear in all of this?
GULI: Honestly, my biggest fear -- most people expect that my biggest fear is that I won't succeed in finishing a 100 marathons in a 100 days, that's
not my biggest fear. My biggest fear is that what I do won't have the impact that I want it to have. I want to solve this global crisis.
QUEST: Do not worry about that. Do not worry about that, you have no control over that part, and I think it will have a major impact because
anybody who is prepared to do what you're prepared to do -- congratulations.
GULI: Thank you very much --
QUEST: Congratulations before you even start it.
GULI: Thank you. And one of the biggest fears is starting, I think the biggest success is finishing.
QUEST: We'll be with you. We will be with you in spirit because I'm not - - when we come back after the break, a man who has fought corruption in Africa for many years, Trevor Manuel will talk with us as well. Also
Brexit and what actually will happen when the U.K. leaves and one of the biggest Brexiteers who actually -- well, is now in trouble with the law.
[15:45:00] (COMMERCIAL BREAK)
QUEST: Welcome back. It is QUEST MEANS BUSINESS. Now, we're talking corruption in Africa for today's question of the day. For good reason we
have been in Kenya, Nairobi, Kenya, all of the weekend, we've been covering more details -- cnn.com-slash-join where you can put your answer, voting is
about to begin.
The question will come to you in a second or two. The dark clouds of corruption still overshadow politics in for example the rainbow nation.
South Africa's watchdog says the Home Affairs and former Finance Minister Malusi Gigaba should be punished for lying under oath.
That was when he was being questioned about the private airport facility. Although it comes days after President Cyril Ramaphosa held a major
investment conference in Johannesburg. Now corruption of course isn't just a problem in South Africa, government across the continent are making major
moves to clean it up.
The issue is, is it working where you live? You can see the question on the screen now, vote at cnn.com-slash-join. The choice is no, it's getting
worse, no, it's pretty much the same, yes, it's getting a little bit better, yes, it's getting a lot better. Now, we've given you the full
range of things that you can vote for.
So you can't simply say, oh, that Quest, he's once again banging on about corruption in Africa. Cnn.com-slash-join, have your say, give us your view
on the state of play. We'll ask our next guest in a moment at the end of the interview just in case you decide to play.
Trevor Manuel is with me, former Finance Minister. Now, with the responsibility of -- for the new government of drumming up business
investment.
TREVOR MANUEL, FORMER FINANCE MINISTER, SOUTH AFRICA: Yes, indeed. Since President Ramaphosa was elected by parliament on the 15th of February, he's
made a lot of commitments and I think he's been able to deliver a fair amount of that. The last period has been very good, the investment
conference just last week and two weeks prior to that, there was a labor job summit that brought together trade unions, business and government. So
there's a fair amount on the boiler(ph) at the moment.
QUEST: Fair amount, but is the issue of transparency and good governance, is it still being raised to you when you talk about investment
opportunities in South Africa?
MANUEL: Well, yes, partly because of certain actions that have been taken. We have sitting at the moment a number of commissions. One of them is
headed by the deputy Chief Justice Raymond Zondo, looking at state capture, and I think that over the next 18 months or so as this commission plods its
way through stories, it will appear as though there's a lot more corruption because it's lancing of the boil.
QUEST: Right, but you are well on record with -- I think it was how you described the previous presidency, yes, Jacob Zuma as a disaster.
[15:50:00] MANUEL: Yes.
QUEST: The far from getting better during that presidency and the situation got exponentially worse on those issues. So there is a much
deeper hole from which you have to dig yourself out.
MANUEL: Yes, there are a couple of issues that have immediate impact. The first of those is to bring those who have been involved in corruption to
book -- so there's a commission sitting on that. A second side -- so that happened on the spending side.
On the revenue side, the revenue administration was completely destroyed and there's a commission headed by retired judge looking at that as well.
And this very morning, the president actually fired the guy who had been brought in by Jacob Zuma as a commissioner for the revenue service.
QUEST: Can I just ask you -- how, you said you won, you said you kept asking again and again and again, how is this being allowed to continue.
And how was it allowed to continue for so long? Complicated question, of course. But at the end of the day, it was well within the gift of the ANC
to get rid of him.
MANUEL: It was. It was, but I think the problem is that sometimes people are numb due -- you can look at many administrations around the world today
where there are strong men, I don't know of any strong women, but strong men in position.
And people go along with what they say. I mean, you know, in the run up to the midterms elections, you look at what's being said and people go along
with it. You can --
QUEST: That's a very clever draw to Donald Trump --
MANUEL: No, you could --
QUEST: Very clever.
MANUEL: You could -- you could look at Brazil right now, I think it's going to be the same. You can see it in the Philippines, why are these
things allowed to continue? Because we have -- all of us have lived through a period of democracy's high point when you had governments that were far
more accountable and we've lived through nine years of Jacob Zuma where the situation deteriorated.
And I draw distinction between this first term which ended in 2014 and the period between 2014 and the 14th of February this year when I think the
situation just got substantially worse.
QUEST: If you had to answer the question that we've asked about the state of corruption -- a little bit better? Much better? A little bit worse? A
lot worse? What would you say?
MANUEL: I think the first issue is what do you know and what did you know? And many South Africans will learn a lot more about the corruption that has
taken place and it feels a lot worse. When in fact it's the lancing of the boil.
Because there are processes that seek to root out the corruption entirely and the other countries -- I mean, when I look at the situation in
Mozambique, you know, where the poster child of Africa, the poster child of the developing world got itself into deep trouble and is now working its
way through. If I were in Mozambique, I would look at the evidence and say it's actually getting a bit better.
QUEST: Let's stay with you, Trevor Manuel, along with -- just putting context -- what we were talking about last night on this program. On this
program last night, we had another of our polls which the question -- where the question was "which economy is going to lead South Africa in the next
20 years?
MANUEL: Africa presumably --
QUEST: I bet your pardon, we were talking about Africa, thank you sir, thank you. Which economy in Africa is going to lead the next 20 years?
Nigeria and Kenya both dueled it out. South Africa was way down. The confidence in South Africa to be a leading economy in Africa is dwindling.
MANUEL: I think it can be won back. Though, I don't think it's a kind of race to the top or bottom, I think that we have to do a lot more together.
The African continental free trade agreement which Nigeria will hopefully join quite soon brings with it a lot of promise.
Next week, the African Development Bank is hosting an Africa Wide Investment Conference in Johannesburg. So the pressure's on. But I think
it's about winning back trust. Last week at an investment conference hosted by President Ramaphosa, the one issue that felt like it's returned
into the body politic of South Africa was the issue of trust and pride.
QUEST: Good to see you sir, thank you very much indeed.
MANUEL: Thank you very much, Richard.
QUEST: Yes, according to our poll, more than half of you say corruption in Africa is actually getting worse, and yet, a quarter of you say things are
getting better or at least a bit better. Let's just take a look at the markets before we go to a profitable moment.
And the Dow Jones Industrials -- look at that. The market has not only held its own, it's improved its gain over the course of the last hour. And
if you take the triple sack and look at the S&P 500, for example, you will see that the S&P is higher, the Nasdaq has gained more than 1.75 percent.
[15:55:00] And the FANG stocks are even higher, they are 2.5 percent to the good. The reasons it all started with Donald Trump and President Xi
talking on the question of trade and the U.S. president saying things were looking better. And that was the -- if you like, fired the starting and
off to the races.
And look at that. The green across the Dow 30 shows the nature of the day. Boeing is up heavily, Caterpillar is up heavily, and those are reasons why
Europe -- now Europe for some reason was mostly lower, even though they've seen a good gain in New York.
The Dax was higher, the Deutsche Bank shares were up and hedge fund investor is buying a 3.1 percent stake in Deutsche and that set that market
up -- that's the only reason why the Xetra Dax was able to -- if you like not follow the rest. We'll take our profitable moment after the break.
(COMMERCIAL BREAK)
QUEST: Exactly what's been happening in the markets since we're at the New York Stock Exchange -- well, the "EXPRESS" comes from here every day. But
now on QUEST MEANS BUSINESS, we decided we needed to get together and delete it a bit, and understand that it will be more.
The reality is, there was no sharp reason for the dramatic fall on Monday, the 500 points at one stage. Any more than it was the reason for the rise
on Tuesday, Wednesday or indeed today's gains which is up some nearly 1 percent on the Dow. But the market's volatility has to be expected and
priced into that volatility is higher interest rates, the earnings reports and the tech stocks being over bought and now oversold.
Whether this is a correction or something deeper, I think the majority of people here would say that it is just a correction. And if that's the
case, then it's a buying opportunity. Let's wait and see what Apple shares come out after the bell. Apple is in just 20 -- 10 or 15 minutes from now
and where Apple goes, it will be interesting to see how the market follows tomorrow.
And that's QUEST MEANS BUSINESS for tonight, I am Richard Quest at the New York Stock Exchange. Whatever you're up to in the hours ahead, I hope it's
profitable. The bell will be ringing just over there, there it goes, the bell!
(BELL RINGING)
The Dow is up! The day is done!
