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Quest Means Business
President Obama Host Canadian Prime Minister Trudeau at the White House; Prime Minister Trudeau Said He Will Work with the Next President Elect Including Donald Trump; U.S. Senator Klobuchar says Trade with Canada is Important; Why Wouldn't We Trade with A Friendly Democracy Next Door?; China's Steel and Coal Industry is Laying Off Massive Numbers of Workers; Gawker Says They have First Amendment Right to Publish Sex Tape; Hulk Hogan Seeking $100 Million Over Sex Tape Release; Artificial Intelligence Wins Second Match of "Go" Game Against the World Champion"; AlphaGo is Something Much Bigger in Computer Science
Aired March 10, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
MAGGIE LAKE, HOST: The market may be headed to a flat finish but we've seen triple digits swings in both directions today. It's Thursday the 10th
March.
(BEGIN VIDEO CLIP)
LAKE: Tonight unleash the big bazooka, Mario Draghi makes it rain with new ECB stimulus. Advantage Sharapova, the tennis star gets support from her
racket maker Head. The company's CEO will be on this program. And it's debate night in America, Republicans are ready for the CNN showdown.
(END VIDEO CLIP)
LAKE: I'm Maggie Lake. This is "Quest Means Business."
Tonight, investors wanted the European Central Bank to go big and Mario Draghi delivered.
(BEGIN VIDEO CLIP)
LAKE: The ECB's President has unveiled a massive stimulus program and cut rates even further. That in response to a gloomy outlook for growth and
inflation in the Eurozone. After an initial rise, European stocks nose- dived. Mario Draghi said he hoped today's announcement would dispel the idea that Central Banks have no tools left to use.
MARIO DRAGHI, PRESIDENT EUROPEAN CENTRAL BANK: One is Central Banks have no ammunition left, Central Banks have no policy instruments. But I think
the best answer to this is being given by decisions today. It's a fairly long list of measures. And each one of them is very significant.
(END VIDEO CLIP)
LAKE: Welcome to Mario Draghi's Eurozone farm. He says growth has been stunted by volatility in emerging markets, the stock market and the slow
pace of structural reforms. Now Draghi is opening all the tabs of stimulus.
The first tap, the ECB will increase the pace of bond purchases from 60 billion euros a month to 80 billion. That's around $90. The second tap,
different types of bonds. The ECB will buy corporate debt as well as government debt. The third tap rate will be cut further into negative
territory. Mario Draghi said that tap is fully open as further cuts could damage the banking sector. But it was this statement in particular that
sent stocks skidding.
(BEGIN VIDEO CLIP)
DRAGHI: Say that the rates will stay low, very low, for a long period of time, and well past the horizon of our purposes. From today's perspective,
taking into account the support of our measures to growth and inflation, we don't anticipate that it will be necessary to reduce rates further.
(END VIDEO CLIP)
LAKE: Those comments blew away an early rally in European stocks.
(BEGIN VIDEO CLIP)
LAKE: As you can see the major indices all closed lower. A fall in oil prices pushed stocks down even further. The Euro too reversed course after
Mario Draghi spoke. It had fallen against the dollar initially, it rose after the Bank of ECB President said rates are unlikely to sink further.
(END VIDEO CLIP)
LAKE: Valentijn Van Nieuwenhuijzen, is the Head of Strategy at NN Investment Partners. I asked him if Mario Draghi had done the right thing
from a policy standpoint.
(BEGIN VIDEO CLIP)
VALENTIJN NIEUWENHUIJZEN, HEAD OF STRATEGY NN INVESTMENT PARTNERS: You look at this meeting, everybody was really starting to see how he could surprise
to the upside and yet again he did. So in that sense I think that is impressive. Markets are welcoming his willingness to stay creative, to
stay open minded and take into account the concerns that they have expressed recently in terms on the impacts of the banking system.
(END VIDEO CLIP)
LAKE: He's doing what he can but I suppose the question is will it work.
NIEUWENHUIJZEN: Yes, that is a very fair question to ask. And I think as Mario Draghi himself has said many times actually to get real traction in
the real economy at this point, politicians have to move much than Central Banks still can.
(BEGIN VIDEO CLIP)
NIEUWENHUIJZEN: It doesn't mean the Central Banks will stop doing or throwing the towel in. That's why Mario Draghi is still easing. But if you
really want to kick-start the European economy, you will have to have a broad-based investment agenda supported by fiscal policy by politicians
rather than Central Banks alone.
LAKE: And we don't seem like we're -- as Europe grapples with so many problems that we're at a juncture where we're going to see that sort of
political support or that fiscal support. I want to ask you about the reaction in the currency market.
(END VIDEO CLIP)
LAKE: A lot of people say for all the technical descriptions about this, really countries are embarking on a race to devalue their currencies.
Europe needs a weaker Europe. Except that we saw some volatility in the currency after this.
NIEUWENHUIJZEN: Yes, well, first of all, Draghi himself commented on this and really I think for the right reasons pointed out that he is not
engaging in a currency war but that he is focusing on the European economy. The conditions there are so weak he wants to ease further and as a result
of it the currency could weaken.
But then again he followed up with the comment that for his sake, from his perspective this was probably the last rate cut he could foresee. And once
he has spoken those words, you saw immediate reversal in the currency and actually a strengthening on both the level that we saw before the start of
the press conference.
[16:05:12]
LAKE: You know we're in an environment of negative interest rates, we're seeing Central Bankers, as you said, be creative. Others are a bit
concerned about the license that they're taking right around the world. Are there unforeseen consequences that we should be worried about?
NIEUWENHUIJZEN: Well obviously there are. Ever since the collapse of Lehman, Central Bankers have been in an experimental mode. And obviously
when you experiment, there's always unintended consequences and some of them I think are not as negative as the positives of at least showing your
willingness to act in a period of crisis. And still I think that is the overriding positive, but there are some risks and that's why we also saw
the concerns in the banking system earlier this year. And I think that is the positive takeaway from today. These risks, these concerns, if policy
measures are not really effective, are taken into account in tilting the direction of policy.
LAKE: Market volatility soon crossed the Atlantic. After rising 100 points in the first hour of trade, the Dow tumbled. It clawed back some of the
losses late in the session to close down around 25 points.
Ben Willis is the Senior Trader, Princeton Securities, and he join us from the floor of the New York Stock Exchange. Ben, thanks for being with us
today. Walk us through the mind-set of investors today as these markets jumped up and down?
BEN WILLIS, SENIOR TRADER, PRINCETON SECURITIES: Well I guess the easiest way to start this is this was not an investors market. This was a trader's
market.
(BEGIN VIDEO CLIP)
WILLIS: This market was being moved globally by traders who were trying to reposition their global risk book based on the moves in the currency. As
the previous guest just hit on. The most important conversation was the last few words of Mr. Draghi saying he thinks this is the end of the
easing. So while he may not be in a currency war, he's in a clean-up stage. And what we're seeing now is the rebuilding of nations and their currencies
after a very bloody war that had started with the United States.
We've started on a process by raising rates, pushing the dollar higher, but the conversation today from Mr. Draghi had a huge impact on the Euro, an
unintended consequence, I'm sure, with the conversation of not only the easing, the last of the easing, if you will, but also allowing a carry
trade with their banks. The LTRO, is what also put a bid in the Euro market, because that is going to create a profit center for their European
banks to trade with the Central Bank to start to get that income that they were losing by not being able to lend at significant rates.
(END VIDEO CLIP)
LAKE: Yes, they've had to get creative. What does all of this mean for the Federal Reserve next week? What is the expectation?
WILLIS: Well, the fact the Euro moved up on this and I don't know if it's going to hold quite frankly. I think again this is a short term movement
based on what is happening in the conversations that caught people off guard.
(BEGIN VIDEO CLIP)
WILLIS: The bazooka so to speak turned out to be more of a bubble gum pop. The LTRO and the conversation about the last of easing had that impact, I
think that will die off as we go along. But if they were to do it today, the Federal Reserve theoretically could get away with a rate increase again
because of the impact on the currency, the dollar sold off dramatically against the Euro today. That gave the opening. I don't know if that will be
in place by the time Janet Yellen's next meeting ends.
(END VIDEO CLIP)
LAKE: Yes, Ben, when we're talking about psychology here, does the market still have confidence in the central bankers? Mario Draghi trying to say
today we still have tools we can use. But when I talk to a lot you guys, the feeling is they've done everything they can, it's really up to the
politicians now.
WILLIS: No, I don't think there's been confidence in the Central bankers since we realized that they're the emperors with no clothes. They continue
to try and move their global markets. And it's really the first time in history there's been such a globalization. Yet you have individual Central
banks and it was really discovered with the fact the European Central Bank is trying to act like a Central Bank like the United States or like
Canada's or like Japan's and they don't have that ability. It's more like herding kittens when it comes to the EU and the variations of countries
between Greece and Spain and the United Kingdom that wants out. So there's not -- we don't have -- I would say as traders we don't have faith in
Central bankers, but because of their impact on the currency, we need to pay very close attention to what they do and also hopefully they learn from
their lessons. And obviously, this is one with Mario Draghi, unintended consequences by what he thought was creating a free market situation with
the LTRO actually had the opposite impact on the currency he was hoping to get.
LAKE: Yes, we're watching them learn it in real time. Ben Willis -
WILLIS: Exactly.
LAKE: -- thanks so much for joining us today.
WILLIS: My pleasure, Maggie.
LAKE: There's some positive news for tennis star Maria Sharapova. Unlike many others, one sponsor sticking with her.
(BEGIN VIDEO CLIP)
LAKE: We'll speak to the Chief Executive of racket maker, Head.
(END VIDEO CLIP)
[16:10:00]
(COMMERCIAL BREAK)
LAKE: Not every sponsor is ditching Maria Sharapova. Earlier this week, the tennis star admitted taking a banned drug but said she did not know it was
banned at the start of this year. The tennis racket maker "Head" says it wants to extend its contract with Sharapova.
(BEGIN VIDEO CLIP)
LAKE: "Maria Sharapova has been a role model and a woman of integrity who has inspired millions of fans around the world to play and watch tennis.
The honesty and courage she displayed in announcing and acknowledging her mistake was admiral." That from the company.
(END VIDEO CLIP)
LAKE: Now, other major sponsors like Nike, Porsche, Tag Heuer, have all suspended ties. We're joined by the Chief Executive of Head, Johan Eliasch.
He is live in London for us tonight. Thank you so much for being with us tonight sir. Can you - can you talk to me a little bit about what went
behind this decision making and how hard was it to come to this position?
JOHAN ELIASCH, CHIEF EXECUTIVE, HEAD: Well we looked into this in great detail. To come to a confident view. And there are a number of
circumstances that are at play here.
(BEGIN VIDEO CLIP)
ELIASCH: One is, was this done by -- with the intent to gain an unfair advantage or was this a mistake? And the conclusion that we came to, having
deliberated on this, was entirely clear. That all the circumstantial evidence points that this was an honest mistake for 25 days.
LAKE: I think the thing that puzzles a lot of people is that somebody at her stature, with the level of success that she's at. Don't you have a
team of people who pay very close attention to these things? How is it a superstar doesn't know what substances are on the banned list or at the
very least her team?
(END VIDEO CLIP)
ELIASCH: Now that raises another question and that is the banned substance is called Meldonium and the medication that she took is called Mildronate
so it's a different name. This was not pointed out in the notice that went out, so that's one factor.
(BEGIN VIDEO CLIP)
ELIASCH: Another factor which is highly relevant is that probably this is not the performance enhancing drug at all, and if it is, it is at
significantly higher dosages than what somebody would be prescribed. So there I think the World Anti-Doping Agency, they need to take blame.
Because the correct action would have been to impose a dosage limitation, not to ban the substance. That's not fair to the athlete because the
athlete has been suffering from a medical condition for a very long period of time, in fact, for ten years she has been taking this substance.
(END VIDEO CLIP)
ELIASCH: She has tested positive for the substance for that ten-year period. So everybody has known that she was taking it. And if there should
have been a ban on it, which I think is highly questionable, because there's no clinical testing supporting that it is a performance enhancer.
(BEGIN VIDEO CLIP)
ELIASCH: At least she should have been directly notified.
[16:15:05]
LAKE: Yes, all very excellent points Johan.
(END VIDEO CLIP)
LAKE: I'm curious when you take a step back, you know, as the executive at an athletics' company, almost every sport we look at, whether it's FIFA,
whether it's athletics track and field, there is the specter of some sort of corruption or questions and the same in the U.S. here when it comes to
player behavior. Why endorse a star at this point at all? Why not just go with a no name or go with a theme and take the risk of associating your
brand only to have to deal with these problems afterwards? Have you thought about whether the payoff is worth it?
ELIASCH: It's not the question -- it's not a commercial gamble. This is what about is right and wrong.
(BEGIN VIDEO CLIP)
ELIASCH: And it's correct for us as a brand to stand behind Maria because this is clearly an honest mistake. Nothing other than that. And I think
equally it has been wrong by the World Anti-Doping Agency to impose the ban that they have done on this substance. It should have been a dosage
limitation at most. And I think the notion of sanctions here is also wrong because of the circumstances, and yes it was a mistake, but in
jurisprudence, what this would compare to is -- I mean in civil life, would compare to community service.
(END VIDEO CLIP)
ELIASCH: And if I were to commit a sentence for this mistake, it would be to teach kids tennis for three months, but not to ban her from playing
competitive tennis, it's wrong.
LAKE: Well we'll see if any of the regulators involved listen to that persuasive argument. Johan Eliasch, thank you for coming on tonight and
sharing your view with us. CEO of Head.
ELIASCH: Thank you.
LAKE: Now, we want to bring you some news just coming into CNN; the U.S. Justice Department has filed a reply to Apple in its legal case over the
encrypted iPhone belonging to one of the San Bernardino shooters.
(BEGIN VIDEO CLIP)
LAKE: Apple is fighting a court order forcing it to create software to unlock the iPhone. CNN money correspondent Jose Pagliery has the details.
Jose, we know this is such a closely watched case, what's going on this evening?
(END VIDEO CLIP)
JOSE PAGLIERY, CNN MONEY CORRESPONDENT: Well let's remember what it is that brought us to this point. So Apple recently argued in court that the
government cannot force it to write code and it really cited two things. It said the company has a first amendment right that code is like speech. So
it's protected. And the second thing they argued is that this would violate their fifth amendment right to due process. The government can't force a
company to do its bidding.
Well now we have a response from DOJ and it's a two-part response. The government is saying that they're only in this position because Apple put
themselves there because they built an ios that the FBI can't break into without their help.
(BEGIN VIDEO CLIP)
PAGLIERY: And then it goes to fight both cases. Right. So the first amendment point it says that actually Apple doesn't have a first amendment
right because essential operations of the American legal system sometimes force someone to say something they don't want to say and in this case that
would be Apple forcing the company to do this. And the second part is that the company doesn't have a due process right to not develop source code.
Essentially the FBI is arguing that yes, we can tell you to do it, to do something.
LAKE: But they don't have the last word of course.
(END VIDEO CLIP)
LAKE: This is going to be heard by the courts. Where does it go now? Now that they both stacked up with their arguments, what happens next?
PAGLIERY: Well, now the U.S. District Judge that's overseeing the case, it's the next level. Initially it was a magistrate judge, now it's a U.S.
District Judge that's going to have to make a decision about whether or not Apple will be compelled to help the FBI.
(BEGIN VIDEO CLIP)
PAGLIERY: But it's not going to end there. Let's be honest about this. It's going to go to the Appellate Court, it'll probably go to Supreme Court
because what we're dealing with here is something unprecedented. It's whether the government can tell a company to do something that would
potentially change its product.
(END VIDEO CLIP)
PAGLIERY: Because if Apple does actually help the FBI break into this one iPhone, then they've created a code that could potentially be used for
future phones. And law enforcement around the country has already made it very clear they want to break into iPhones too in criminal cases and other
case. And so it could set off a chain reaction forcing Apple to start breaking apart iPhones everywhere.
LAKE: Now I know it often happens on these very high-profile cases, especially as it travels up the court chain, you have other people that
weigh in and they can submit documents and they can submit their own arguments. Are we going to see a very clean lineup of Silicon Valley vs.
the FBI Washington, or we're not so sure?
PAGLIERY: We're already starting to see it. Every tech company you can imagine is on Apple's side. Microsoft, Facebook, Amazon. All these tech
companies all say that what the government's trying to do here might be noble, it might help solve this one case of a terrorist in California, but
the end result will be that we'll have less safe technology, that the government will undermine the very features that keep our devices private
and secure. And so on the other hand, those that are weighing in on the government's side are police associations, law enforcement associations,
the victim's families in San Bernardino.
[16:20:05]
LAKE: In a compelling way, right.
PAGLIERY: Right, but the big voices here, the corporations, they're on Apple's side.
LAKE: And as this travels through the court, there's also pressure to say if you want to live in a world like that, then it should be done through
congress, it should be legislated and the people who elect you should have a say in whether they think that - so there are going to be courses -- two
very interesting places to watch this play out I think.
PAGLIERY: Absolutely.
LAKE: All right, Jose, thank you so much for breaking it down for us, appreciate it.
PAGLIERY: My pleasure.
LAKE: Jose Pagliery. Now the stage is set, the Republican candidates prepare for a CNN debate ahead of the crucial Florida primary.
(BEGIN VIDEO CLIP)
LAKE: It could be the last stand for two of the contenders.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
LAKE: Bernie Sanders says he's proud to be the candidate that keeps Wall Street up at night.
(BEGIN VIDEO CLIP)
LAKE: Sanders and Clinton crashed at a Democratic debate on Wednesday over who would be tougher on banks. Goldman Sachs CEO Lloyd Blankfein says
Sanders would be dangerous for Wall Street. The Vermont senator says that suits him just fine.
BERNIE SANDERS, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: I am proud that the gentleman who is head of Goldman Sachs now he didn't give me $225,000 for
speaking fees, he said I was dangerous, and he is right, I am dangerous for Wall Street.
HILLARY CLINTON, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: I have been on the record and now I do have the toughest most comprehensive plan to go after
Wall Street and not just the big banks. All the other financial interests that pose a threat to our economy and I have said no bank is too big to
fail. And no executive is too powerful to jail and I will use the powers that have now been passed by the congress by President Obama who,
incidentally, took a lot of money from Wall Street which didn't stop him from signing into law the toughest regulations on the financial industry
since the --
(END VIDEO CLIP)
LAKE: Bernie Sanders has just held a rally in Kissimmee, Florida. That's where senior Washington correspondent Joe Johns is right now. And, Joe,
Bernie, in this race, and it seems like he is energized and drawing crowds.
JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: Drawing large crowds, very large crowd here in Kissimmee, Florida this afternoon. He was also over in
Gainesville talking to the college crowd. That of course is part of his base and part of the reason why he's been successful. Of course Maggie, the
truth is here if Florida, it's a much broader consideration when it comes to demographics.
(BEGIN VIDEO CLIP)
JOHNS: There are a lot of minorities. African-Americans, blacks, Latinos, and they are a voting force in the state. So a question for Bernie Sanders
is whether he can do well in states that is in the south and a state that has a lot of minorities. He's pushing hard on that to broaden his base if
you will, Maggie.
LAKE: Well this has been a race of many surprises so we will see. Joe Johns, thank you very much. Joe on the Bernie Sanders trail.
(END VIDEO CLIP)
LAKE: Attention now turns to tonight's, CNN Republican debate in Miami. Trump will be center stage again, alongside Ted Cruz.
(BEGIN VIDEO CLIP)
LAKE: Meanwhile Marco Rubio and John Kasich will need to make an impact. Both are facing must-win contests in their home states next Tuesday.
Let's bring in CNN senior political analyst Ron Brownstein, he joins us live from Miami, Florida. And Ron, this is a must win. I'm curious, given
some of the latest CNN poll numbers, Florida is exactly the kind of state that Donald Trump should be struggling in and yet he's ahead in the polls.
[16:25:10]
RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Yes, you know the thing about Donald Trump is that he has cut the Republican party along a different
access and really has kind of reshaped the geography of the race as a result. Traditionally, the big divides in the Republican races, the
Republican primaries have been between voters who are evangelical Christians or not and voters who are very conservative or not. Trump is
kind of transcending those divides. He is strong among blue collar Republicans, competitive among white collar Republicans. But really strong
among those blue collar republicans.
(BEGIN VIDEO CLIP)
BROWNSTEIN: And that's allowing him to win combinations of states that we really haven't seen before. I mean Mitt Romney didn't win Arkansas and
Massachusetts and Vermont and Georgia. And yet that was exactly what Donald Trump could do. And so his coalition is sort of portable and allows him at
least a foothold in virtually every state.
LAKE: Yes, and we talk a lot about the Hispanic vote, the African-American vote in Florida. We should remember, there are a lot of retirees down there
who are very concerned about their welfare. Ron when we're talking about the debate tonight, it's going to be very critical. How do you see this
playing out? And how does Marco Rubio make himself stand out? He really backed away from trying to "out-trump" Trump, apologized he said he
embarrassed himself. How does he - how does he make an impact without going and getting drawn into that?
(END VIDEO CLIP)
BROWNSTEIN: By the way, just so our viewers around the world are clear, the diversity that you're talking about is a much better factor in the
Democratic primary. A third of the voters or more will be non-white. In the Republican it will probably be about half that, about a sixth. So it's much
less of a factor.
But for Rubio, you know look, this is, you know look his back is against the ocean as it were.
(BEGIN VIDEO CLIP)
BROWNSTEIN: I mean he has been kind of backed up into his home state. I think for him, I think he really has to underscore the stakes in this race
tonight. You know, if you have - if you have Donald Trump winning Ohio and Florida next week, it is very hard to see how he is denied the nomination.
So I think for Rubio and for John Kasich, the Governor of Ohio, I think they have to make the case to all of those voters who are hesitant about
Trump, that this is really the do or die moment. And one thing worth noting is that even though Trump has had clearly the biggest broadest coalition of
any of these candidates running, his total share of the actual votes cast now, through all the primaries and caucuses, is 35%. He is not growing into
that 40%, 45, 50% range that you might have seen for another candidate who had the kind of momentum Trump does. There is still an equivocal verdict on
him and a lot resistance to him in the party.
LAKE: Yes, and a lot of the Republican establishment keep trying to remind us of that.
(END VIDEO CLIP)
LAKE: Ron, great to catch up with you. Thank you so much, it's going to be a really important night.
Now, it is only four hours until that debate gets under way. CNN's Jake Tapper will moderate from the University of Miami beginning at 8:30 p.m.
eastern time, that's 1:30 a.m. London time, that is only on CNN.
Now the U.S. and Canada are trying to forge even closer ties.
(BEGIN VIDEO CLIP)
LAKE: We'll go to the White House for the Canadian Prime Minister's first state visit to America.
(END VIDEO CLIP)
[16:30:00] (COMMERCIAL BREAK)
[16:31:37] MAGGIE LAKE, CNN ANCHOR/CORRESPONDENT: Hello, I'm Maggie Lake. Coming up on the next hour of QUEST MEANS BUSINESS. I'll speak to the U.S.
Senator whose being tipped to be Hillary Clinton's running mate if she wins the Democratic nomination. And Hulk Hogan is wrestling with a very
different opponent, the website that published his sex tape. Before that these are the top news headlines we're following for you this hour.
U.S. President Barack Obama has welcomed Canadian Prime Minister Justin Trudeau to the White House. It marks the first State visit of a Canadian
Premier to the United State for almost 20 years. The White House says the two leaders will mainly discuss the issues of trade and climate change.
Mr. Trudeau says the United States and Canada could lead the way on sustainable growth.
(BEGIN VIDEO CLIP)
JUSTIN TRUDEAU, CANADIAN PRIME MINISTER: The President and I share a common goal. We want a clean growth economy that continues to provide good
jobs and great opportunities for all of our citizens. I'm confident that by working together, we'll get there sooner than we think.
(END VIDEO CLIP)
LAKE: In around four hours from now, the Republican presidential hopefuls will begin their CNN debate in Miami. It's the last time republicans will
debate before voters go to the polls in the key states Florida and Ohio. Marco Rubio and John Kasich pinning their election hopes on beating the
front-runner Trump in those states.
Brazil's former president has been placed under formal investigation over corruption charges, according to state media. Prosecutors allege Luiz Lula
da Silva benefited from a bribery scheme involving the state-owned oil company Petrobras. Mr. da Silva denies the allegations.
The European Central Bank has announced new stimulus measures. The ECB's plans to buy some $90 billion worth of bonds each month. The Central Bank
also cut interest rates further into negative territory. It's all in an effort to boost growth and inflation in the Eurozone.
David Cameron has criticized those who are campaigning for Britain to leave the European Union. The U.K. will vote on whether to leave in June. The
British Prime Minister said the economic risks of leaving the E.U. were too great and were simply not worth taking.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: For those who advocate leaving, lost jobs and a dented economy might be collateral damage or a price worth
paying. For me, they are not. They are never -- they never are because there's nothing more important than protecting people's financial security.
That's why I believe we are better off in.
(END VIDEO CLIP)
LAKE: Let's get back to the Canadian Prime Minister's first State visit. Justin Trudeau and Barack Obama have hailed the benefits of trade ties
between the two nations. Trade has turned into top political issue in this 2016 election. Mr. Obama says he's still a full believer in free trade.
(BEGIN VIDEO CLIP)
BARACH OBAMA, U.S. PRESIDENT: I believe that there have been bad trade deals on occasion in the past that oftentimes they have served the interest
of global corporations, but not necessarily served the interest of workers. But I'm absolutely persuaded that we cannot put up walls around the global
economy.
(END VIDEO CLIP)
[16:35:00] LAKE: CNN's Suzanne Malveaux is at the white house and joins us now. Suzanne, watching this all day, these seem like two men who have a
personal connection and are really intent on beginning a new chapter in these relations.
SUZANNE MALVEAUX, CNN U.S. CORRESPONDENT: Maggie, it was very interesting to actually see the press conference at the White House earlier today
because a number of things dominated. Of course, you mentioned the trade relationship between the United States and Canada, as well as a real
commitment to tackling climate change. Both the leaders talking about how important their relationship is, $2 billion worth of trade that crosses the
border every day. About eight million Americans who depend on Canada for their jobs, as well as Canada being the main supplier of oil to the United
States. But both of these leaders were asked about the possibility of after President Obama's out of office, whether or not any of these deals,
this policy, would move forward, if there was a Republican President, particularly Donald Trump.
We heard from both these leaders responding to that. President Obama saying, look, he is not going to take any kind of responsibility for what
he calls is a circus within the Republican Party during this primary season. He calls it the Republican crackup. He says he has been trying in
many different ways to move forward and to bring this country together.
At the same time, you heard Justin Trudeau asked the same question, will this affect the relationship if Donald Trump is in the mix next year.
Trudeau is very much seen as an anti-Trump figure here in the United States. If you take a look at the policy of Trudeau accepting some 25,000
Syrian refugees to the country. Even welcoming them personally with parkas, taking selfies with them. We've heard from essentially from Donald
Trump saying that there would be no Syrian refugees accepted. We also saw Trudeau praying publicly in a mosque with Muslims during Ramadan. Trump on
the other hand saying he would not allow any Muslims into this country.
Finally, you see Trudeau, bilingual, very much embracing French as well as English, the two official languages of his country. Trump saying he
doesn't particularly care for people who are speaking Spanish. So it's clear the questions to both these leaders is whether or not there would be
that kind of threat to this very important relationship, both of them saying no, they don't think so, they're willing to move beyond it. Trudeau
particularly saying he would be willing to work with anyone who is in the White House next year. But, Maggie, it was fascinating to actually watch
this. Because out of the four questions that journalists posed, two Canadian and two American, it was Donald Trump again who dominated the
discussion, Maggie.
LAKE: It's amazing no matter where we are and what the event is, it is certainly a sign of the times. Suzanne, thank you very much, we know
there's a big State dinner tonight. Suzanne from D.C.
Now Senator Amy Klobuchar is Democrat from State of Minnesota in a few hours, she will attend that state dinner for Prime Minister Trudeau. The
Senator has already endorsed Hillary Clinton and is being touted as one of her potential running mates. Earlier I spoke to the Senator and she told
me why it was so important to promote open and free trade with Canada.
(BEGIN VIDEOTAPE)
AMY KLOBUCHAR, U.S. SENATE DEMOCRAT: Well first of all, the proximity, it's right next door. Secondly, in an increasingly competitive global
environment, I hear you have a friendly democracy right next door, and the more we can coordinate things, whether it is a better bridge between
Windsor and Detroit, whether it is better infrastructure to make goods flow freely at our borders. Whether it is better airport infrastructure, so we
can easily have passengers go back and forth. In this bigger, bigger world where China is becoming a major issue, we want to have a North American
bloc. A New Day in North America as we call it, and that means building these relations on everything from climate change to energy. And the
security, I'm very happy that the Prime Minister has been very clear that he wants to up Canada's game internationally. Because we need help, of
course, not only in conflicts around the world, but with aid and his views on the refugees. That symbolic moment where he went to the airport and
followed it up by bringing in Syrian refugees. Those are big deal things and we need a partner that's participating internationally.
LAKE: You know Senator, it's interesting, you talk about the economic benefits, the nine million U.S. jobs that rely on that open trade with
Canada. And yet voters seem to disagree with you. And in your own state, they voted for Bernie Sanders on the Democratic side who has been very
loudly anti-trade.
[16:40:00] KLOBUCHAR: Well, I think that election is one thing, but I will say that Bernie Sanders, is not negative about the country of Canada, and
certainly Hillary Clinton as Secretary of State -- my candidate -- has had a long history of working with Canada. I would say when you look at the
trade relationship with Canada, we have our disputes, whether soft wood, lumber, or dairy or some of these issues, but overall it's been positive.
We have a trade surplus of 300 some billion dollars of American goods going over there to Canada. It's actually an example of a good trading
relationship that we want to strengthen.
LAKE: Senator Klobuchar, why do you think voters are so angry and so upset about some of these economic issues that they seem to be embracing the
outsider at a time when some analysts you talk to say the U.S. economy looks like it's doing pretty well?
KLOBUCHAR: Yes, well certainly in my State, the unemployment's rate is down to 3.8 percent, but I think the issue we're seeing all over the
country is income inequality. We have people that it's just getting harder and harder -- while they may have jobs -- harder and harder to send their
kid to college or buy a house. That's why really one of the major challenges for the next president is going to be addressing those issues
for Americans. Because when you're having a tough time yourself, it can be really hard to see some of these issues on the international stage and
embrace others. This idea of continuing an investment in infrastructure, of doing something to make it easier to afford college, making sure people
have a place to live. Those continue to be challenges for America. And that's what you're going to see a lot of talk about in the election.
LAKE: You just mentioned that Hillary Clinton is your candidate. Your name has been circulated as a possible running mate, position of vice
president. Would you serve if Hillary Clinton asked you to?
KLOBUCHAR: I've made it clear I love my job now. I love representing the state of Minnesota. That's why I'm focused on it. I am happy to go around
the country and in my State and help Hillary Clinton. I think the key right now is we see such a differential between the two parties. On one
side talk about -- including speaking of Canada -- one of the candidates wanted to build a wall to Canada. But also talk about having, you know --
deporting millions of people and all kinds of policies that I don't think are going to be helpful to the American middle class. I think right now
we're at a pretty wild stage of the game right now, but eventually, soon, in a few months, the world will see a choice of two candidates. I can't
tell you who it's going to be on the Republican side, but they're going to see a choice and then there will be a clearer moment in time to make these
economic arguments to people in our country.
(END VIDEOTAPE)
LAKE: The decline in U.S. manufacturing has been blamed on one country in particular, China. It's led to a so-called "rust belt" across the Northern
United States. But in parts of china's industrial heartland, factories have fallen silent as well. CNN Money's Asian-Pacific editor Andrew
Stevens takes us to the center of China's own "rust belt."
(BEGIN VIDEOTAPE)
Reporter: (voice-over) This is ground zero of China's new economic reforms. The country's steel mills, hulking relics of an earlier time.
Massive complexes like the Benxi iron and steel company. The very life blood of the town Benxi in Liaoning province. But now facing the unknown,
as Beijing looks to slash the bloated and inefficient state owned enterprises starting with steel and coal.
(on camera) This propaganda mural outside the front of the plant speaks to a different era when heavy industry ruled China and the workers were told
the State would look after them from cradle to grave, the so-called "iron rice bowl." Well, that bowl has long since cracked. Workers today face a
very different future.
(voice-over) Most people here work in the mills but it's a tight community and they're suspicious. They tell us they don't want the company to find
out they've been talking to the media. But it's clear that pay and jobs here are now being cut. In the back street away from the crowd, we meet
this man who spoke to us but wouldn't give us his name.
He and his wife both lost their jobs at the steel works a couple of months ago. He was reemployed as a day worker, which means he loses his health
benefits.
"The company is firing many workers and hiring day workers because it saves them a lot of money," he says. "There's no insurance, no benefits. I have
to accept this job because I have a wife and a daughter to take care of."
The company and the provincial government which owns the steelmaker declined requests for interviews. But their website says 110,000 people
work here. They won't disclose their profits, but China's steel industry is deep in the red as demand shrinks and prices slump worldwide.
Most of the workers who did speak to us say that wages have been cut dramatically in the past year. Twenty-three-year-old Liu Hwan, an
electronics technique, had his pay cut just three weeks ago by more than 60 percent. He now earns about $200 a month. He lives with his parents, so
he quit and is now looking for a job in another city. "The company's losing money. I'm quite young and single, I'm pretty sure I can get
another job in a big company," he says. "I can still live here on this pay. But it makes things a lot harder."
[16:45:00] At a local convenience store, this Lei Bin Chi waits for customers. She's been here for nine years, but over the last two years,
business has nose-dived. "We used to sell about 10,000 yuan of stuff here every day, now it's less than a third of that," she says, "There were 20 or
30 shops of workers around here, now there's hardly any." The mood right now in Benxi is one of grim acceptance and the workers say they're expect
things to go from bad to worse. Andrew Stevens, CNN, Benxi, Liaoning province, China.
(END VIDEOTAPE)
LAKE: It's Hulk Hogan versus "Gawker". And in the latest round Hulk Hogan's journalism expert found himself under attack.
(COMMERCIAL BREAK)
LAKE: The very nature of journalism is in the spotlight in a Florida courtroom It is all part of Hulk Hogan's $100 million lawsuit against
"Gawker". The former wrestler says "Gawker" invaded his privacy when it published his sex tape in 2012. "Gawker" counters publication was covered
under the first amendment. The editor responsible is unapologetic saying he found the video amusing. Gawker's legal team has also painted Hogan's
expert witness on journalism as out of touch with the realities of the modern newsroom, and advances like Twitter and Facebook. Joining me now is
Alex Weprin, he's POLITICO's deputy media editor. Alex, thanks for being with us today. Boy, it sounds like neither of these groups are doing each
other particularly any favors. There's a lot for everyone to pick apart. Walk us through what happened today with the legal expert. What happened
that he seemed so out of touch?
ALEX WEPRIN, DEPUTY MEDIA EDITOR, POLITICO: So Hulk Hogan's legal team brought in an expert, Mike Foley. He's a journalism professor down in
Florida, and they tried to portray "Gawker" using their expert Mike Foley, at "Gawker" as a sleazy operation. Or was acting unethically when it
published the Hulk Hogan sex tape. "Gawker" and they also talked to Foley on the stand, and they attempted to kind of portray him as out of touch.
Say that he wasn't aware of how tabloids operate today and that nudity and sex is actually a pretty common topic.
LAKE: Right, and that it's a bit old-fashioned. His idea that they were doing something out of the social norms. I'm curious, you know, we brought
up the first amendment in the intro for a reason. As they trade barbs back and forth, I think it's easy for all of us to get drawn into the sort of
morality of whether this should be happening. But even if you find it distasteful, does "Gawker" have a strong argument that this is covered
under the first amendment? What are you hearing from people?
WEPRIN: They do. Everyone we've spoken to said they are almost certain to win on appeal. However, this is a local trial in Tampa, Florida. And the
jury in Tampa may not agree.
LAKE: It reminds me a lot of Larry Flint and his long, you know, crusade with "Hustler" and the first amendment and it was the same idea, people
thought it was pornography it was horrible. And he was saying I have the right to publish it.
[16:50:00] Why do you say on appeal? Is that something that's not going to resonate with people at all? We've had a lot of discussions about this in
the public realm. Is it a jury trial and just not the type of audience it's going to, but does that matter? I mean the judge presumably gives
them instructions.
WEPRIN: Sure and the judge will give instructions. But ultimately this is a jury of folks in Tampa. It's probably different than New York or D.C.
where journalism and media is kind of a big business there. They may see things differently. They may think that "Gawker" acted unethically and
maybe that they should not have published that tape. So Hulk Hogan does deserve the compensation. So that's why it's likely -- if it does go in
Hulk Hogan's favor, it will probably be overturned on appeal, but there's a very good chance Hogan wins.
LAKE: Now, this is also happening at a time where there have been many sex tapes -- celebrity sex tapes -- that have been released or have found their
way into the media. And some of them have -- you could argue I suppose -- enhanced some of the celebrity of some of these people. You know, it's not
so straight forward on how damaging this is I guess as a result, but that's, again, not what this case is about, right. It's not about whether
this hurts your career or helps your career, it's about whether you have the right to publish something without someone's permission.
WEPRIN: That's exactly right. Now look there have been sex tapes that you could argue boosted a celebrity's fame or fortune, but Hulk Hogan is saying
arguing that. He's saying it hurt him substantially. That's the basis of his argument.
LAKE: And they didn't have the right to do it without his --
WEPRIN: It was taped in secret. He did not know it was being taped.
LAKE: All right, it's going to be important one to watch and certainly pretty salacious, as we've seen from some of the comments coming out.
Alex, thank you so much for joining us.
WEPRIN: Thanks.
LAKE: Now, round two in the human versus machine faceoff at the Go champion tries to beat Google's computer. First though a highlight from
"MAKE, CREATE, INNOVATE."
(COMMERCIAL BREAK)
LAKE: It's been billed as the test for the advancement of artificial intelligence. On Wednesday we told you how Google's computer beat the
human world champion in the first round of Go, the ancient Chinese board game. Here's Ivan Watson with, what happened next?
(BEGIN VIDEOTAPE)
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Believe it or not, these are the final nail biting moments of an historic contest between man
and machine.
UNIDENTIFIED MALE: AlphaGo scores another win.
WATSON: (voice-over) The Korean champion, Lee Se-dol, emerges in defeat after losing the second battle in a row against a Google supercomputer
called AlphaGo. He says he's in shock. "I'm just speechless looking at today's game. It was a complete defeat," he says, "AlphaGo played a
perfect game." The two opponents have been facing off at Go. Many describe it as the world's most complicated strategy war game.
(on-camera) The computer just beat the human champion again.
ANDREW OKUM; PRESIDENT, AMERICAN GO ASSOCIATION: Yes.
WATSON: How do you feel?
OKUM: Worse.
WATSON: (voice-over) Go players like Andrew Okum argue that to be good at this 2500 year old game you need to have intuition, a characteristic that
we used to think was uniquely human.
OKUM: We really enjoyed playing a game that even today with computers being so strong they couldn't play. Up to a few months ago, they could
pick out a terrorist's face in a crowd or land an airplane that was in trouble, but they couldn't beat us at this. Now they can. That's sad. We
don't like that.
WATSON: (voice-over) Twenty years ago, a computer called Deep Blue beat the World Grand Master, Garry Kasparov at chess. Go is much more
complicated.
DENNIS HASSABID, CO-FOUNDER GOOGLE DEEPMIND: Another way of viewing the complexity of Go is the number of possible configurations of the board is
more than the number of atoms in the universe.
[16:55:00] WATSON: (voice-over) Last October, AlphaGo beat Europe's Go champion in five straight games. In the five months since then, AlphaGo
has gotten much, much better at the game, says this Korean Go Master, Kang Dong-yun (ph) . "It's scary how quickly it upgraded," he tells me. "It
feels like it's the terminator."
(BEGIN VIDEO CLIP)
TERMINATOR, MOVIE: If we die tonight, mankind dies with us.
(END VIDEO CLIP)
WATSON: Are we one step closer to the robots taking over?
OKUM: You mean it hasn't happened yet?
WATSON: (voice-over) Jokes aside, the super computer's designers insist AphaGo is a step toward something much bigger in computer science.
(BEGIN VIDEO CLIP)
HASSABID: It is just one rung on the ladder towards solving artificial intelligence.
(END VIDEO CLIP)
WATSON: Artificial intelligence or A.I. is something that continues to capture popular imagination.
(BEGIN VIDEO CLIP)
EX MACHINA, MOVIE: Are you going A.I.?
WATSON: At this challenge match, that science fiction fantasy feels one step closer to reality. Ivan Watson, CNN, Seoul.
(END VIDEOTAPE)
LAKE: So there you have it, it the machines are winning 2-0 against the humans. Lee now has to win three in a row to take the series. The next
match up is scheduled for Saturday. The winner takes $1 million, but Google has said it will donate its winnings to charity if the computer
wins. Small cancellation maybe. We'll have the latest final scores on the day's market action just after the break.
(COMMERCIAL BREAK)
[17:00:00] LAKE: Time for a final look at where the markets ended this session on Wall Street. The DOW could not hang on to that 17,000 mark. It
finished lower after a rocky day trade thanks to that ECB stimulus decision. We saw triple digit swings in both directions. When all was
said and done, we closed the session off the lows of the day down just five points. The S&P 500 also finished flat.
European stocks didn't get a bounce either. The major indices all closed lower after Mario Draghi said further rate cuts are unlikely. That's a big
reversal for stocks after they had initially risen following news of the new bond buying and rate cuts. The fall in oil prices then pushed stocks
down even further. The euro reversed course after Mario Draghi spoke. It had fallen against the dollar at first. It is now up nearly two percent.
And That's QUEST MEANS BUSINESS, I'm Maggie Lake in New York. The news continues here on CNN.
END
