Return to Transcripts main page

Quest Means Business

The World Turns on Trump; Chaos in Commodities with Thousands of Jobs Cut; Women in Technology; U.S. Lawmakers and the Visa Waiver Program; Interview with Maurice Levy; A Sea Change in Maine. Aired 4-5p ET

Aired December 08, 2015 - 16:00   ET

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

[16:00:00] PAULA NEWTON, CNN ANCHOR: Another day another triple digits swing in Midal. I want to direct to your attention now to that big deep

after 11:00 a.m. here in New York. It could have been much worst. A Tuesday, the 8th of December.

Tonight the world turns on Trump. His calls to ban Muslims from the United States are being slammed worldwide.

Chaos in commodities, tens of thousands of jobs are cut as crisis had ever lower.

And U.S. lawmakers are about to make it tougher for millions of travelers to visit the United States. You won't want to miss that.

I'm Paula Newton and this is QUEST MEANS BUSINESS.

And good evening. The man who's made billions dealing in countries and cultures around the world says he would ban all Muslims from the United

States and now the condemnation has come from all corners.

Donald Trump is refusing the back down from his controversial statements on Monday. The leading Republican candidate for the U.S. Presidency called

into CNN's NEW DAY program this morning. And spoke with our Chris Cuomo in a testy exchange Trump defended his plan.

(BEGN VIDEO CLIP)

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": Don't get how you connect all the dots.

(CROSSTALK)

COUMO: Because of the e-mail scandal?

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: . Chris put it through your head.

COUMO: Look, everybody knows who we're with.

TRUMP: They are looking to over, they are looking to do great damage. You look at what's going on in the Middle East. They are chopping off heads.

They are looking to come over to other places too and they want the Jihad. It's very simple, they want the Jihad.

COUMO: Right, but you're saying -- yours -- who is -- what is that mean they want the Jihad.

Well you can't just throw out notions without any kind of checking of them. You know, this is what got you wined up on the Philadelphia Inquirer front

page like Hitler.

TRUMP: OK.

COUMO: They got you in a percentage of Hitler right now, a characterization of that.

TRUMP: Philadelphia Inquire, another newspaper going out to.

COUMO: Well, I know you're going to despair as whoever criticizes you and I'm waiting for that as well. But here's the point.

TRUMP: . to set of a security policy released that is showing 25 percent of those polls agreed. Now, these are Muslims living in the United States.

COUMO: Yeah.

TRUMP: . 25 percent of the Muslims living in the United States agreed that violence against Americans here in the United States is justified as part

of the global Jihad.

COUMO: Donald, we wouldn't even put that poll on the air.

TRUMP: . wait a minute Chris, let me finish.

COUMO: It's a hack organization with the guy who is dismissed from the conservative circles for conspiracy theories. You know that. It's a bad.

(END VIDEO CLIP)

NEWTON: Now the condemnation of Trumps comments is coming from all continents and from all sides of the political spectrum.

British Prime Minister David Cameron Spokesperson called Trump divisive, unhelpful and quite simply wrong. After Trump said parts of London are so

radicalized the police are afraid for their lives. The London police force even weighed in. And the London Mayor meantime Boris Johnson said it was

simply ridiculous and jokes he would avoid New York at the risk of running into Donald Trump.

Now, the Grand Mufti of Jerusalem, the cities most senior Imam called the comment extremely racist. Palestinian law makers say they cannot understand

how Trump is running for U.S. President.

Meantime, here in the United States, the head of Homeland Security says Trump is being irresponsible and that his words are contrary to National

Security efforts.

Now speaking in CNN Trump's fellow Presidential rival Republican Senator Lindsey Graham says his patience with Trump has run out.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R-SC), PRESIDENTIAL CANDIDATE: He's a race-baiting, xenophobic, religious bigot. And you know how you make America great again?

Tell Donald Trump to go to hell.

(END VIDEO CLIP)

NEWTON: And we have some interesting angles on the story for you. Trump makes millions from business deals in the Muslim world and his comments

come a matter of weeks after he announced plan to take more money from investors in predominantly Muslim countries.

Take a look. The Trump Organization has plans for two golf resorts in Dubai. And just a few months ago, Trump announced plans for an ultra luxury

resort in Bali and a golf course in West Java Indonesia, he is first in Asia.

Now, last year Trump opened a luxury hotel in Baku in Azerbaijan on the Caspian Sea.

Now, I spoke to emerging markets editor John Defterios and asked them if this will paint the Trump brand in the Middle East.

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: I was thinking it will go in forward Paula.

I think most here in the Middle East in North Africa in particular and as some of the Muslim countries which Donald Trump has been operating, there

is surprise. And I would suggest even shocked when it comes to comments about the Muslim world.

Let's start here in Dubai which is clearly the entertainment and golf capital of the Middle East in North Africa, its where Donald Trump has this

largest project in the Middle East by a long shot worth about 1.5 million dollars. It's called AKOYA Oxygen. It's a golf course, villas, apartments

and even has a mosque by the way on the property.

[16:05:03] Now, I thought it was interesting that DAMAC Properties, his partner tried to distance himself from the controversy but also stay within

the Trump camp just in case he makes it into the White House.

We have a comment here from a Senior Vice President of the group Nile Mahklouf and he said, "We would like to stress that out agreement is with

the Trump Organization as one of the premier golf course operators in the world and as such we would not comment further on Mr. Trump's personal or

political agenda nor comment on the internal American political debate seen as we see right now.

Also I thought was interesting Paula is that Ivanka Trump, his daughter was here in May of 2015, a very high profile hotel investment conference. And

she was suggesting not limit the business to the UAE perhaps look into a more conservative countries like Saud Arabia and Qatar.

But it's not all smooth sailing from the Trump Organization here in the UAE. They launched a high profile project in he New York back in 2008 for

the Palm Jumeirah and that got caught in the 2009, 2010 financial crisis and it never broke ground.

So Donald Trump wanted to come to oil rich Middle East. He wanted to come in to the Muslim world. He has properties in fact in Indonesia launched a

big hotel project in mid September and he's even in Central Asia in Azerbaijan. So he's been wanting to court the Muslim world. Want to top the

oil wealth. Top the largest Muslim market in Indonesia but at the same time suggesting as a politician, he doesn't like the idea that Muslims can

travel freely into the United States.

It's very difficult for him to balance the political and the business interest that's for sure.

NEWTON: And you know, it comes to mind our people there saying that, "Look, this is hypocrisy. He'll do business with Muslims as long as they don't set

foot on American soil."

DEFTERIOS: Yeah, I think it's a fair comments, Paula I spoke to the director of the MEED which is the big project follower here on the Middle

East Economic digest holds very large property, conferences and the like and said this is really hypocritical, the fact that he wants to court

business and at the same time have the very tough language back in the United States.

But the Trump brand is known for being very brash. And many are surprised that he's built that political support in the United States and they're

very word here in the Middle East what it would mean for Middle East policy from Washington partnering perhaps with Russia going forward.

Who would be the U.S. partners under Donald Trump Presidency and I think the best example of this Paula literally one of the most powerful business

man here on the UAE Khalaf Al Habtoor who four months ago came out surprisingly to those here in the Middle East community suggesting that he

supported Donald Trump. That it was a breath of fresh air and who was very upset with President Obama particular in his position in Syria.

Now, Habtoor is completely turned the table here at Donald Trump and this is a quote from an op-ed that he had very recently. He said, "I believe and

still do that America is lacking strong leadership." Kind of take in a slap at President Obama. "But one strength is partnered with ignorance and

deceit that produces a toxic mix threat in the United States in our world."

And I think that is the tone that will prevail going forward at Donald Trump continues to put the Muslim world in his sights here and offering the

criticism trying to please the politicians or his supporters back home but offending many in the Middle East, who keep their cards very closer their

best but will not do business with the man who has very ill words for this Muslim community.

NEWTON: Now even if we ignore the moral outrage that we've lined up here at Trump's proposal. The more outrage around the world really, logistically

speaking the plan does not stand up well to scrutiny.

Now diplomatically, it would be nothing sure of a disaster but in all sorts of agreements with other nations in jeopardy. And this would be stating the

obvious but obviously stated again literally if you look at your passport and I look at mine, it does not disclose our religion. And there is no

system in place for the U.S. to track every travelers face.

And any ban would of course have a huge impact on U.S. tourism. Clearly there's no religious breakdown of tourist numbers but a more than a million

people visit the United States every year from the Middle East alone.

Now, joining me from Washington is Ibrahim Hooper. He's the National Communications Director for the Council on American Islamic Relations.

Thanks so much for joining us today.

And I know that you have a lot to say about his comments. I want though to know from you how much does it upset you that his commentary on banning

Muslims into this country has residents. Residents with the core group of Republicans.

IBRAHIM HOOPER, COMM. DIR. COUNCIL ON AMERICAN ISLAMIC RELATIONS: Yeah. Well that's the frightening thing. We've always had anti-Muslim bigotry in

our society. We've had it for any years. But it -- until recently it's been at the fringes of society. What Donald Trump and Ben Carson and public

figures like this too, is they bring this bigotry to the mainstream and that's the frightening aspect of this whole scenario that it somehow

legitimizes anti-Muslim hate.

I can't tell you how many hate mails, how many e-mails, how many threats, how many hate calls we've been receiving made personally, I mean, you know,

what it's just -- it's gone through the roof in terms of ratcheting up the anti-Muslim hate on America.

[16:10:14] We've had a pigs head left at a mosque yesterday in Philadelphia. Assaults on Muslim, sixth graders called ISIS. Mosques

vandalized, mosque shot at, Muslim home shot at. I mean it's really getting out of hand. And Donald Trump is partially responsible for this.

NEWTON: In terms of your community when you continue to look at these comments and the rhetoric coming out of Donald Trump. What do you want the

Republican establishment and that right now is a controversial word? What do you want them to do?

HOOPER: Well politicians, religious leaders, public figures of all political stripes needs to speak out strongly. We've been asking for so

long for the right wing of the political spectrum to speak out against the growing Islamophobia within their own ranks. And we're seeing it laid

there.

Now with these latest comments by Trump but we've been almost begging Republicans to stop attacking Islam and Muslims as part of their political

platform and they've ignored us, and, so you see where they're at now and its time for everyone to speak out. But I don't know that it will matter,

with Trump, he doesn't care what people think because he gains more support, the more outrageous he is the more support he gets from this, this

in franchise base that his seeking to appeal to.

NEWTON: And yet the outrage inside the United States and quite frequently outside the United States was almost universal. Do you think someone like

Donald Trump though is also bad for the American economy, bad for the American brand?

HOOPER: His bad for everybody, he harms our nations image and interest and he essentially does the work of ISIS in terms of creating a risk for our

national security by alienating 1/5th of the world's population.

NEWTON: So Hooper, we thank you for your comments on. And see we'll continue to follow this issue and we'll check back.

HOOPER: Thank you.

NEWTON: . in with you in the coming weeks. Appreciate it.

Just ahead drastic cuts of commodity prices tumble mining giant Anglo American does it will have to shed 85,000 jobs.

(COMMERCIAL BREAK)

[16:15:05] NEWTON: Now Tuesday mark this six straight day of triple digits swings for the Dow, I know it's painful with data out of China, increased

concerns about the countries economic health and commodity prices took an incredible hit. I want to draw your attention to something that happened

that happen that really was incredible today. Brent crude deep below the $40 mark before coming back ever so slightly and we saw broader sell of in

precious metals, silver and platinum fell more than 1.5 percent, gold also down.

Now global mining giant Anglo American announced plans to cut big headline here, 85,000 jobs. The company will sell 60 percent of its asset including

its coal and copper mining operations shares of course tumbled more that 12 percent.

Now CNNMoney Digital Correspondent, Paul La Monica is here to go through this with me.

You know, what a headline 85,000 jobs, 60 percent of their assets. I mean are they just saying that's it, we're out of this game and we're going to

consolidate on businesses that we think can make money.

PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yeah, its staggering I think that really every commodities company right now has to reassess what

they're doing and taking to account that this huge slide that we've had may not end anytime soon and even if it does end the best that could probably

hope for is maybe for prices to stabilize not go up dramatically any time soon.

We've already had big job cuts in oil patch. We're probably going to have more from energy companies and mining companies.

NEWTON: You know, one thing we talk about and we don't want to get technical but we talk about elasticity. So I'm looking at low commodity

prices. I'm looking at low gas prices they should be good we should all be cheering this and yet it's really rattled the market.

LA MONICA: I think it's rattling the market mainly because we have once again fears about China and possibly lower demand feeding into this sell

off and it's not just the supply glut anymore, its one thing when it was OPAC versus United States and that's one reason why oil prices have

plunged. Now you're throwing demand slowing that's whole other fall whacks.

And then when you look at what's just going to on with oil prices right now even though they have been tumbling we have in that consumers necessary

going out and spending all those savings. I think people are nervous that it's more of a bad size especially when you have all this job cuts coming

in energy companies.

NEWTON: Yeah, that's a huge amount of job cuts and you pointed out to me earlier that industries that we should really they thriving off of this are

also getting worried about it.

LA MONICA: Yeah, the worst performing stock in the S&P 500 was Southwest Airlines. Airlines typically rally anytime you see oil prices stumble. It

appears now though that what's good news for travelers maybe bad news for airline stock. Southwest suggested that fares could fall in the fourth

quarter which is obviously great for anyone traveling around the holidays but anytime any airline exactly talks about lower prices. It brings back

those painful memories of fare wars and all the irrational pricing and the bankruptcies and we don't want that for the airline industry again even if

it does mean a cheaper ticket.

NEWTON: Yeah, and some people have said that look the fact that we don't we have a lot of competition in airlines, we'll take care of all that.

We'll wait to see you Paul. I know it's a good story that we continue to cover here on QUEST MEANS BUSINESS. Paul, thanks so much. Appreciate it.

LA MONICA: Thank you.

NEWTON: Difficult day on the markets. Now breaking the system in order to fix it, we meet the computer hacker whose job it is to break in the

corporate system to find their weak point

(COMMERCIAL BREAK)

[16:20:55] NEWTON: IBM has been feeling the hedge for a campaign to encourage women in technology by asking them to hack a hairdryer. Now the

use of the feminine object to entice women drew ridicule of course online for promoting stereo types instead of fighting them.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: To blow away the misperception, dissolve the stigma, blast through the bias.

(END VIDEO CLIP)

NEWTON: Now IBM admitted it missed the mark on that one and it promised to do much better. And all weekly are focusing on what motivates people to

become hackers in CNNMoney's series, the secret lives of super hero hackers.

Now, one woman use technology as a way to overcome an abusive childhood and try and protect others online.

Laurie Segall went to meet her.

(BEGIN VIDEO CLIP)

SHYAMA ROSE, HACKER: I've been all around the world doing security. I've worked for the top companies in the world. Based on where I came from. I

have every right to be cooked-up prostitute, you know, but I would rather be a castrated nerd.

LAURIE SEGALL, CNN TECHNOLOGY CORRESPONDENT: This is Shyama Rose. At three, her mom joined a religious group outside of Austin Texas. There was beauty,

belief, devotion to a religious leader named Swami Ji. It was all cover for horrific abuse.

ROSE: We've been abusing, sexually abusing me and some of other girls at the ashram.

SEGALL: Do you remember the first time it happened?

ROSE: I was standing in the kitchen then I was 11-years-old and wearing this gigantic sari which we young girls probably shouldn't be wearing and

he was trying to adjust it around me and just, you know, just started touching and either there's confused what, was that.

The only outlets that I have were books or computers and when I got the computer it was like lightning in my life. It was a total savior and I got

one with the modem. Plugged it in and then heard that famous.

And then it was just kind of like game over from there.

SEGALL: It was her growing ability to hack, to speak another language that opened doors outside on the ashram.

ROSE: Hacking in computers to me became such an incredible outlets to me and there is definitely a conception in peoples mind that, you know,

hacking can be very bad but it's also good in a way too like sometime you got to break things down to figure out how to make them better.

SEGALL: Hacking was her ticket to freedom outside the close bubble of the compound. She left and became what you might call a professional projector.

At Nasdaq her job was to actually think like a bad hacker while hostile governments were on the offense trying to steal sensitive stock

information, she played even just finding weak links before they could get to them.

ROSE: I want to help people feel better. I want them to feel protected and maybe that's where it came from.

SEGALL: She's taking on hackers from all over the world. And as an adult, she as able to take on the first person who exposed her to injustice, Swami

Ji, the story was featured here on CNN's "The Hunt."

It was her testimony that would help lead to his conviction. He was sentenced to 280 years in prison but disappeared after posting bail.

ROSE: I think growing up in such an impressive life as a child. Freedom to me is very important.

SEGALL: To show me where she finds freedom she asked me to come here where she's been quite a bit a time.

ROSE: I need to be able to do what I want, when I want and how I want. And skydiving allows me to do that. It takes you to where the roller coaster of

what is life. We see beauty, we see in sunset no one else would see.

And hacking is like this too but the people that you do it with, you create for a deep bond with because it's something that you share with those

people that no one else does.

Now, it's such a unique skill, it's a edge of life kind of moment both hacking and skydiving.

(END VIDEO CLIP)

[16:24:50] NEWTON: Now in the wake on the attacks in Paris the United States could make it much more complicated for foreigners to enter the

country without a Visa.

(COMMERCIAL BREAK)

NEWTON: Hello. I'm Paul Newton, coming up in the next half hour of QUEST MEANS BUSINESS, the U.S. Congress can finally agree on one thing making it

harder for visitors to travel to the United States.

'll have an exclusive interview with the CEO of Publicis Maurice Levy about the changing face of media and Donald Trump's latest comments on Muslim.

Before that though this is CNN and on this Network the News where it came from.

The White House says, "Donald Trump calls for a complete and total ban of Muslims entering the United States should disqualify him running for

president."

The Republican candidate has sparked outrage across the world after calling for the ban on Monday. White House Press Secretary John Earnest criticized

both Trump and his supporters with in the Republican Party.

(BEGIN VIDEO CLIP)

JOHN EARNEST, WHITE HOUSE PRESS SECRETARY: The fact is the first thing a president does when here he takes the oath of office and to swear an oath.

To preserve, protect and defend the constitution of the United States and the fact is that what Donald trumps said yesterday disqualifies him from

serving as president. And for Republican candidates for president, to stand by their pledge to support Mr. Trump that in of itself is disqualified.

(END VIDEO CLIP)

NEWTON: The FBI is now investigating the bank accounts of the two shooters by in last weeks killing in Southern California as to see if there's any

unusual transactions relevant to the attack.

Now according to lawyers they have removed seen here on the right recently took in out a loan of almost $30,000 from an online lender.

Law enforcement officials have now been able to verify that information to CNN and say the cause of the attack is not appeared would have been

expensive.

[16:30:07] Three Taliban government open fire on a bizarre near one of Afghanistan main airport. Now a local official says Afghan national

security forces then returned fire near Kandahar Airport. The Taliban claimed responsibility for the attack saying they were targeting foreign

forces at the airport. A South African judge has granted convicted murder Oscar Pistorius bail at

less than $700. Last week South Africa's Supreme Court of Appeal overturned the Olympian's conviction of culpable homicide and found

Pistorius guilty of murdering his girlfriend Reva Steencamp. Pope Francis has ushered in the Jubilee or Holy Year of Mercy for the

Catholic Church. Now he opened these holy doors that you see here of St. Peter's Basilica, signaling the start of this special year.

Now, millions of Catholic pilgrims are expected to walk through those doors as part of a nearly 600-year-old ritual.

Right now lawmakers in the U.S. are expected to pass a bill that puts new restrictions on a system that lets millions of foreign travelers to visit

the United States. Now the new rules on the visa waiver program - those are live pictures you

see of the vote right now - new rules of this program could have support in fact from both sides of the aisle. We don't have to tell you, in

Washington that's quite rare. Now the restrictions were proposed in the wake of last month's Paris attacks. These are live pictures, as we said, that you are seeing right

now. That debate's still ongoing and we do expect a vote soon. Now the bill's approval will mean more intelligence-sharing between the

U.S. and the 38 countries whose passport holders are allowed to visit the United States without getting a visa.

That's roughly 20 million people every year. Lawmakers wanted to tighten up the program as a way to weed out travelers who have been to certain

countries where they may have been radicalized. Now Michelle Kosinski is at the White House for us to bring us up to date on this. Michelle, you know, as we said, that is quite rare to get

bipartisan approval for this. Why is it popular on the Hill right now? Why do they think they need to do this?

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Yes, you took the words right out of my mouth that this is one of those rare occasions where

everyone seems to agree. I mean, you have widespread report - support - among Republicans, Democrats

and the White House is also backing this. The Senate has also talked about do this, and there's bi-partisan support there.

So today is just the one chamber - just the House voting on this, but it's unclear when the Senate then would take it up. Are they going to try to

pass their own bill with some tweaks and changes? So the end process of this possibly ever getting passed remains to be seen.

But what it would do would be limit the visa waiver program as it exists for 38 countries.

It would eliminate those who've been to certain countries over the past five years. Those countries include Iraq and Syria but also Iran and

Sudan. Those are countries designated as state sponsors of terror, remember.

So it just takes away the waiver possibility for those travelers. They could possibly still come to the U.S., but they would have to get the visa

along with all the other countries that - of which that - is required by the U.S., Paula.

NEWTON: In terms of actually putting this into place in a practical sense, I mean many people have many questions about how many people are you

actually going to be keeping from entering the United States? Because many people for many legitimate reasons are in these countries all the time.

KOSINSKI: Yes, definitely I think what all sides who support this are looking for is just more scrutiny, more info/information-sharing among

these countries that are involved. Just a better screening process. Right now the U.S. is looking to tweak

things to make security better, but they don't want to go too far on that spectrum.

I mean, one of the arguments that's going on right now in the House is whether Democrats will be able to bring up a bill of their own that, by the

way, Republicans -- some of them - also support that would keep people who are a no-fly list from being able to purchase a gun in the U.S.

But there's not a lot of support for that. So this would be what's considered by many a common-sense tweak to the visa waiver program. But,

again, the question is there how much is this really doing? So it's going to limit people and put more scrutiny on people who are coming from certain countries.

But then other people who haven't visited certain countries over the past five years, you know, somebody coming from say the Netherlands -- they

haven't been to those four countries that I mentioned in the last five years, but they're part of the visa waiver program so they can come in.

That's not to say that that person wasn't radicalized in the Netherlands or in Germany. So, again, you can see the tweaks but this isn't limiting

things to the extent that other people in the United States right now are calling for, Paula.

[16:35:05] NEWTON: Yes, definitely though it may cause a lot of headaches for many people though, Michelle. We'll continue to follow the update on

that vote. Appreciate it. Now more travel restrictions could spell more misery for the travel and tourism industry. Earlier on Tuesday the Egyptian tourism minister said

revenues for the year will be 10 percent lower than last year following the Sharm el-Sheikh plane crash.

And in Paris, Air France-KLM said it lost $54 million in revenue as a consequence of the Paris terrorist attacks. Many visitors cancelled their

trips to the French capital after those attacks. In the meantime, shares in Publicis fell more than 2 percent this Tuesday.

It lost most of its North American accounts with Procter & Gamble, one of the world's biggest advertisers.

Publicis recently announced a major restructuring plan and CEO Maurice Levy joins me now in the C Suites for this exclusive interview.

You have been so patient, especially as I'm time delivering a little bit of bad news for your company which we will get to.

I cannot have you here without really getting into some of the issues with the Paris attacks. I know that it affected your company very intimately.

I want to get first though to the news at hand today. I want you to listen to what Donald Trump said about Paris in the interview this morning with

Chris Cuomo. Take a listen.

(BEGIN VIDEO CLIP)

TRUMP: Don't tell me about Paris. Paris is under tremendous siege. They are absolutely in fear in Paris.

Don't tell me Paris is -

CUOMO: They have heightened awareness, they do not have fear and they're not acting out of it.

That's why they're letting in refugees.

TRUMP: They don't have fear? Of course they have fear. Of course they have fear.

CUOMO: It's how you behave in that environment.

TRUMP: I have people that are friends living in Paris. They want to leave - they're petrified.

CUOMO: But what are they doing? Are they banning all Muslims?

TRUMP: Well let's see. Maybe they're going to have to.

(END VIDEOCLIP)

NEWTON: You know, and to you now from what you make of those comments.

MAURICE LEVY, CEO, PUBLICIS: I don't know when he was in Paris the last time. I'm living in Paris, I'm walking in the streets and having dinners

in the places. Same for my sons and their families and my grandchildren, so there is no fear.

Certainly we had some fear immediately after November 13th because it has been a big shock to see the killings and the way the killings happened.

But life is - I'm always saying that life is stronger than fear and life is much better than living behind closed doors.

So we are outward, we go to work, we use the Metro as we said. And we walk in the streets, and if you look at the last Saturday, it was about like

your Black Friday in the stores. So it has been a crowded. The week before it was painful because no one was going to stores, but they are all preparing for Christmas and for the

holidays.

NEWTON: In light of trying to really control that fear - contain it and really overcome it - we then have Donald Trump coming out with these

comments to ban Muslims. You know, just in terms of you hearing that rhetoric, I mean, you're a marketing person. At the end of the day, does it harm the Trump brand,

does it harm the American brand at this point in time?

LEVY: Before being a marketing person and a communication person and then I'm simply a human being and this is extremely shocking.

And even in France where we have a - unfortunately - a very strong far right party, very populist, they never dare including after January - after

November - never dared to say we ban the Muslims. And this is making Donald Trump a little bit of a clown, but the fact that he can say this in this country is damaging also the U.S. simply because

the U.S. image - simply because he's extremely popular and is the frontrunner from the Republican Party - and this is really damaging the

American image with a country of freedom, free expression, where people live free and everything can happen positively.

So it's extremely strange and shocking that a man can say such things. But what's good is to see also the reaction of the media and the people.

Everyone looks to be - get the feeling that - they are shocked and honestly I don't understand.

At the beginning I thought that this was an invention until I had to hear him -

NEWTON: Say it with his own words.

LEVY: -- with his own words. And it's just unthinkable.

[16:40:06] NEWTON: And that's just a sampling of the kind of reaction we've had around the world today. And thank you for your comments.

We want to turn now to your company.

LEVY: Yes.

NEWTON: And not a good day there. You know, this is an ambitious reorganization. You seem like a very thoughtful, sober man to me I know.

What have you been saying to shareholders about can you sell this - a short-term pain for long-term gain?

LEVY: We are a company which is at the origin a family business. And we have been always able to manage long-term and short-term. Long-term

expectation with some short-term pain. We are in a world which is transforming big time with the digital, the power given to the consumer, the transformation the fact that any startup

tomorrow can demolish a business of a well-established company and we have to transform ourselves if we want to be ready for the future.

So this goes sometimes with some pain, some major pain. The loss of the media accounts from P&G is something which has nothing to do with the

transformation. It's something which is very painful. We are extremely proud to have served P&G during all these - almost 20 years on the media. We are still

the largest partner.

NEWTON: Why did they leave? Why did they tell you they were leaving?

LEVY: They organized there what we call a `page of invited' if you want contenders to compete for the media account.

Then there is a few criteria including some quite around pricing and some other criteria. And they have opted for what they believe is the best for

them and we wish them the very best. And we hope to see them back in a few years' time and maybe earlier than that.

NEWTON: Quickly, this reorganization - how much is it about really putting in place your successor? And you know so many corporations have failed

because they have not had an orderly progression to the next person.

LEVY: There is two different aspects. One is to put in place a succession plan which we are working on since a few years and we believe that we are

at the last demine (ph) of that succession plan. And the second is really to transform the way we are working for our client

and to put the client at the core of everything we do. So it is to put (ph) the organization upside down, you know that instead of looking at the business as silos, we look at the business through the eyes

of the client and taking into account the most important factor which is without any complacency, are we delighting our clients?

NEWTON: Right.

LEVY: And this is what we have to do.

NEWTON: My apologies, we'll have to leave it there. I thank you for frank comments.

LEVY: No, thank you.

NEWTON: I really appreciate it, thank you. Now from an Inca palace to a monastery to a hotel. A destination in Peru where the present and the past meet up.

(COMMERCIAL BREAK)

[16:45:53] NEWTON: Now we've all been hearing a lot about the latest and newest hotels popping up all over the world.

This week's "Business Traveller" on the other hand is about a hotel that's famous for its ancient roots.

Peru's Hotel Monasterio was built on a monastery in the 1500s. Richard Quest visited the destination to see the art that still adorns the rooms

and the music that fills the halls.

(BEGIN VIDEOCLIP)

(MUSIC PLAYING)

(DUET SINGING)

GUSTAVO DE LEON, GENERAL MANAGER, BELMOND HOTEL MONASTERIO: This is a former monastery built in 1592. Sits over the site of an Inca palace and

the Spanish built the monastery over this asunch (ph). In 1965 it becomes a hotel for the first time.

RICHARD QUEST, CNN INTERNATIONAL ANCHOR AND REPORTER HOST OF "QUEST MEANS BUSINESS" SHOW: The Monasterio is one of Peru's most famous hotels.

DE LEON: Me and all my team is very proud of that. This points the history and the culture is the most important thing for us.

Not only to be in hotel with beds and clean rooms, but to keep, to maintain this history, to maintain these paintings - original paintings from 16th

and 17th century.

QUEST: The entire hotel is full of original paintings.

DE LEON: Yes. All the paintings in public areas and corridors are original.

QUEST: This establishment is literally a work of art in itself. Here, the cup of culture overfloweth.

The whole hotel is dotted with an exquisite collection of Cusconian art that lines the hallways and the rooms while one of Peru's most famous opera

singers performs twice a week. It's simply heavenly.

This is a hotel meeting room with a difference. It's the former chapel at the monastery which is no longer a consecrated ground and is now used for

meetings, conventions, maybe weddings and of course the odd (ph) corporate event.

I wonder where they show the PowerPoint? Preserved by law, the structure remains almost exactly the same to this

day.

DE LEON: Well this stone are original from 1650. It's incredible, but it is. This is the former monastery.

QUEST: 1650. Really old. Walking through the grounds every flower, every stone, and every - well everything is tended with what can best be

described as love. As I walk through Cusco, it's students, it's backpackers, it's good travelers of all ages. But you don't really think about the luxury side of

it.

DE LEON: Yes and not. Yes because it's true - all the people who have examined in South America. You have to go to Machu Picchu once in a life.

But also we have structure for the luxury traveler.

(END VIDEOCLIP)

NEWTON: Gorgeous place there. And even without a tie and casual pants, Richard is still looking for the PowerPoint presentation. Just an aside.

"A Sea Change in Maine." A scientist there says he has found a link between climate change and the declining stocks of codfish, a story after

"Make, Create, Innovate."

(COMMERCIAL BREAK)

[16:52:35] NEWTON: The momentum fraction on climate change is growing. Those are the words of U.N. Secretary-General Ban Ki-moon speaking today as

world leaders enter the final few days of a global climate summit in Paris. Now, here in the United States, a new study has found that the Gulf of Maine is warming faster than almost any other ocean in the world.

I mean, incredible there when you see the facts of that. In the first part of our series "Sea Change in Maine," Claire Sebastian traveled to Portland,

Maine to find out what the future holds for an already-fragile fishing industry.

(BEGIN VIDEOCLIP)

CLAIRE SEBASTIAN, CNN PRODUCER: For Portland's fishing community, the first hours of daylight are the most important.

At the town's Fish Exchange, boats rush to unload their catch. They need to be good there (ph) to be sold. They're not just working against time.

Today's landing at the Portland Fish Exchange was about 40,000 pounds worth of fish, and out of that, just seven boxes of cods.

That's about 500 pounds. Cod stocks have been declining here for decades. Federal quotas were slashed by 75 percent back in May to help the species recover.

Now a new study suggests that intervention have been too late.

ANDREW PERSHING, GULF OF MAINE RESEARCH INSTITUTE: So you assume that if you pull back on the fishing that the stock will have the same productivity

that it has in the past. But our work really shows that, you know, the productivity in Gulf of Maine

cod was declining pretty rapidly as the waters were getting warm. So by not factoring that in, they weren't able to rein in the quotas fast enough.

SEBASTIAN: Andrew Pershing at the Gulf of Main Research Institute believes he has established an explicit link between climate change and cod.

These picturesque waters are ground zero.

PERSHING: We found that over the last 35 years that the Gulf of Maine warmed at a rate that was about three times the global average rate.

But then over the last ten years - so 2004 through 2013 - the Gulf of Maine warmed faster than 99 percent of the global ocean.

So it really was a change that very few ecosystems have ever experienced.

SEBASTIAN: Yet there's a divide in this town between the scientists and the fisherman. Many like veteran Brian Pearce don't believe cod stocks are

as low as they say.

BRIAN PEARCE, FISHERMAN: I've seen the population higher and I've seen it lower than it is now. And I started 30 years ago and there was no issue

with climate change. And we had years where there was tons of fish around and then - no two years are alike.

[16:55:04] SEBASTIAN: Cod is what's known as a choke species. Once a fisherman catches his quota for the year, he has to stop fishing all

together if there's any risk of accidentally catching cod though they're using nets with larger holes --

PEARCE: This is 6.5 inch mesh.

SEBASTIAN: -- and even planning different routes.

PEARCE: This is a chart of the Gulf of Maine. Now we're seeing them in all these areas. Everywhere we go we can't get - find a spot that we can

target the healthy stock and not interact with the cod.

SEBASTIAN: At the Fish Exchange, the impact is stark.

BERT JONGERDEN, GENERAL MANAGER, PORTLAND FISH EXCHANGE: If we had a little more codfish availability, I think we'd have - we'd have a lot more

fish this year. As a matter of fact, this year compared to last year at this time, we're

about almost a million pounds less on landings (ph).

SEBASTIAN: It's a fragile industry operating in what some believe is one of the world's most fragile environments.

Claire Sebastian, CNN in Portland, Maine.

(END VIDEOTAPE)

NEWTON: And we will be right back with more QUEST MEANS BUSINESS in a moment.

(COMMERCIAL BREAK)

NEWTON: Stocks in the U.S. took a spill on Tuesday following some weak trade data from China and the Dow tumbled more than 160 points - a nearly 1

percent fall. Now the Dow had a triple point move for six straight days at every single trading day so far in December. Can you say volatile?

Firearm stocks may have been climbing since President Obama called for more gun control in his speech Sunday night. Smith and Wesson reported strong

earnings after that closing bell. Its shares are up almost 12 percent year to date through a very volatile day.

And that does it for us here at QUEST MEANS BUSINESS. I'll see you again tomorrow.

END