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Quest Means Business
FIFA President Responds to Panama Papers; Icelandic Prime Minister Resigns Over Panama Papers Leak; First Results in Wisconsin Just Hours Away; Obama Praises New Tax Rules; Pope Francis to Visit Lesbos; Twitter to Live Stream 10 NFL Football Games; Brazil Plagued By Overlapping Crises; Uber Invests in Middle East; Uber Announces Expansion in Egypt; Uber Plans $250 Million Investment in Middle East; Women In the World Summit Comes to New York; Tina Brown Says the Tone of Republican Race is Misogynistic; Rare Blue diamond Sells for $32 Million. Aired 4-5p ET
Aired April 05, 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 legendary journalist, Tina Brown, rings the closing bell in New York, you'll hear my interview with her later this hour.
It's Tuesday, the 5th of April. Tonight, the political power of the Panama Papers.
(BEGIN VIDEO CLIP)
LAKE: Iceland's Prime Minister is the first leader to fall. Donald Trump tells us his plan to pay for his wall, President Obama says good luck with
that. And are you ready for some #football? Twitter scores a major deal with the NFL.
(END VIDEO CLIP)
LAKE: I'm Maggie Lake and this is "Quest Means Business."
Good evening, tonight, protesters in Iceland are demanding new elections as the country's Prime Minister is forced from office. Sigmundur Gunnlaugsson,
is the first political casualty of the so-called Panama Papers.
(BEGIN VIDEO CLIP)
LAKE: The leak of confidential documents from Mossack Fonseca showed the Prime Minister had ties to an offshore company withholdings in Iceland's
failed banks. Those revelations triggered mass protests on the street of the capital.
UNIDENTIFIED FEMALE: Of course we knew there was something happening but the extent of the situation was a total surprise so that's why I'm here.
UNIDENTIFIED MALE: I'm just protesting like the rest of the nation it appears.
UNIDENTIFIED MALE: Everybody's just fed up with this.
(END VIDEO CLIP)
LAKE: Joining me now, Gudlaugur Thor Thordarson, is an MP and Deputy Leader for the Parliamentary Group of Iceland's Independence Party. The
Independence Party is in a coalition with the former Prime Minister's Progressive Party. Thanks very much for being with us today sir. What
happens next? Will there be elections?
GUDLAUGUR THOR THORDARSON, INDEPENDENCE PARTY PARLIAMENTARY GROUP DEPUTY LEADER: Well, as you mentioned, the Prime Minister has resigned and I
respect his decision. And now the chairman of the governmental parties are sitting down and deciding on the next steps. We of course have to look at
the economy in Iceland and it's very important that we do not do anything that jeopardize the big achievement that we won on the last few years.
Because we still haven't reached the goals we want to reach which is that we want to lower the public debt, and also that we will lose the capital
restrictions.
(BEGIN VIDEO CLIP)
THORDARSON: So I don't know when the next elections will be held. They will be held in the late next April, but maybe sooner.
(END VIDEO CLIP)
LAKE: In your opinion, who's best positioned to help continue those efforts to revive and re-establish the economy? Who's the best person for
the job?
THORDARSON: Well, my leader (inaudible) he has shown he is a very capable minister of finance and he has done a really good job, so he is the person
I trust the most to take us forward.
LAKE: You know, as you point out, Iceland has fought so hard to recover from the financial crisis. It was one of the hardest hit countries, we
watched the banking system collapse. Is this a setback for Iceland's reputation?
THORDARSON: Well, I think this was a shock. This government has tried to (inaudible) to fight tax evasion and has of course been doing that with
other countries.
(BEGIN VIDEO CLIP)
THORDARSON: We cannot do it alone. Most of our financial sector is based on (inaudible) framework and adopted from the European Union. And we are doing
the utmost with (inaudible) and other countries to fight this. Of course most of this information are before the financial crisis but of course this
is a shock and I think it's important for us to try what we can to build up trust both of the Icelandic financial sector and also of the Icelandic
economy which has been doing really well.
(END VIDEO CLIP)
THORDARSON: And it's fortunate that we have been getting good results when it comes to the economy after the financial crisis and especially in the
last two years.
LAKE: And what do you say to the people pouring out on the street? We've heard from a few of them there. It's something we've heard throughout the
day that they're shocked, that they feel betrayed, that they're fed up. Some of them saying it has that horrible feeling the same as when they woke
up the day after the banks collapsed. What do you say to those people out there?
THORDARSON: What I do say to those people, that we take the situation very seriously.
(BEGIN VIDEO CLIP)
[16:05:00]
THORDARSON: And as I mentioned, we have been trying to fight tax evasion as much as we can and we will keep on fighting. This -- our financial minister
has bought for example (inaudible) offshore companies owned by Icelanders and that's similar to the documents which you are mentioning, you call --
we call the Panama Papers.
What I think is important that - and we are in a bit of a strange situation in the sense that we are trying to get information from the media.
(END VIDEO CLIP)
THORDARSON: It's usually the media who is trying to get information from the government. But I think it's very important that we get this Panama
Papers and so the public can see what's in there and we can see as much of the picture as possible. But this is something we need to fight. And it's
not only us. And we -- it's I hope most of the -- all of the countries around us.
But as I mentioned, most of the business it seems goes through banks in Luxembourg, for example, which is a core country of the European Union and
we can - and we cannot do this alone but we will try everything we can.
LAKE: And you are absolutely right, if we are learning anything, it's this web reaches right around the world to so many countries at so many levels.
Thank you so much for joining us today. We appreciate it.
Now governments all around the world have been forced on the defensive as a result of these leaks. In the U.K. David Cameron says he doesn't have any
offshore accounts.
(BEGIN VIDEO CLIP)
LAKE: His late father was named in the Panama Papers. The British Prime Minister insists his own finances are in order.
DAVID CAMERON, BRITISH PRIME MINISTER: The two things I'm responsible for, are my own financial affairs and for the tax system of the United Kingdom.
In terms of my own financial affairs, I own no shares. I have a salary as Prime Minister. And I have some savings which I get some interest from and
I have a house which we used to live in which we now let out while we're living in Downing Street and that's all I have. I have no shares, no
offshore trusts, no offshore funds, nothing like that. And so that I think is a very clear description.
LAKE: In Russia, a spokesman for the Kremlin says the Panama Papers are being used by the West to criticize Vladimir Putin.
And the Chinese government has chosen to censor CNN's coverage of this story. Beijing's great fire wall is restricting searches and discussions on
social media that involve the word "Panama." It is also censoring the names of Chinese leaders mentioned in the report including President Xi Jinping.
(END VIDEO CLIP)
LAKE: CNN's Will Ripley has more from Beijing.
(BEGIN VIDEO CLIP)
WILL RIPLEY, CNN CORRESPONDENT: Chinese censors apparently working overtime right now scrubbing the air waves and the web of any reference to the ICIJ
investigation called the "Panama Papers."
Every time that CNN starts talking about the Chinese connection to all of this, our signal in mainland China goes to black. And it's not just
television. If you search on Chinese social media, you get an error message when you type in "Panama" or "Panama Papers." And if you search Baidu,
China's version of Google, only a few results pop up.
At the very top, this editorial by the state-run newspaper Global Times claiming that all of this is a conspiracy by western journalist to try to
make non-western government officials look bad. The mention in the "Panama Papers" that at least seven relatives of current or former government
officials have ties to these secretive offshore accounts, even though it doesn't indicate any criminal activity, it is clearly not something the
communist party is willing to discuss. In fact at the Ministry of Foreign Affairs briefing, three different questions were asked about this and they
all got the same answer.
HONG LEI, SPOKESMAN CHINESE FOREIGN MINISTRY: (As translated) for such groundless accusations, I have no comment. As for the "Panama Papers," I
have no comment. I have no comment on this.
RIPLEY: But China itself is waging its own high-profile war on corruption. The communist party has arrested thousands of government officials both
current and former accusing them of accepting bribes among other things, including just Tuesday a retired general. But critics say that President Xi
Jingping's crackdown while aggressive is also very selective targeting those in lower and mid-level positions while leaving many closest to
China's inner circle untouched.
Will Ripley, CNN, Beijing.
(END VIDEO CLIP)
LAKE: U.S. President Barack Obama says tax avoidance is a global problem. The U.S. Treasury Department has announced new rooms aiming to stop so-
called corporate inversions. That's where a U.S. company merges with a foreign firm and relocates the headquarters outside the U.S. for tax
purposes.
The Obama administration's new rules threaten to turn one major inversion upside down. The Pharmaceutical giant Pfizer is trying to merge with Irish
firm Allergan. The benefits are clear. The U.S. has a top business tax rate of 35%. The top Irish tax rate is less than half that and investors seem to
be betting the deal is dead.
Allergan shares fell 15% on Tuesday. Speaking in Washington, the President used the revelation of the "Panama Papers" to hammer home his message on
tax avoidance.
(BEGIN VIDEO CLIP)
[16:10:15]
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: A lot of it's legal. But that's exactly the problem. It's not that they're breaking the laws, it's
that the laws are so poorly designed that they allow people, if they've got enough lawyers and enough accountants, to wiggle out of responsibilities
that ordinary citizens are having to abide by. Here in the United States there are loopholes that only wealthy individuals and powerful corporations
have access to. They have access to offshore accounts, and they are gaming the system.
(END VIDEO CLIP)
LAKE: Joining me now, CNN Money Correspondent Cristina Alesci.
And Cristina it's interesting, we know this has been an issue in Washington and yet investors seemed really surprised by this.
CRISTINA ALESCI, CNN MONEY CORRESPONDENT: They were really surprised. The timing of this announcement is really telling. Because you can
remember back in November, we were talking about how the treasury is going to get tough on companies trying to invert so they can change their
headquarters. Now we get this announcement in the thick of the election cycle. Clearly, there's a political play here.
Not just that, but treasury and the President both saying that this is just a Band-Aid, we can't prevent companies from going overseas, Congress has to
step in and do something about it. And then he evoked the middle class and how these tactics are directly hurting the middle class because we don't
have funds to fix our schools, fix our roads, and it's all because, you know, these wealthy individuals and these corporations are parking their
profits overseas where they're not being taxed.
LAKE: Right, and he made the link to the "Panama Papers." They're also getting a boost I think from that timing. Saying listen, all this stuff,
they're different cases, they're not illegal but they're unethical and the laws are so bad that you're able to do this and it needs to be changed. Is
this - and he did say I hope it becomes an issue in this election. Have we heard much about it from the candidates so far?
ALESCI: It seems like basically a water fall at this point. You know we just published a story about Bernie Sanders making comments to the New York
Daily News for an editorial board meeting where he ripped apart GE. Not just because it -- well, this wasn't an inversion, but it was because it
was avoiding taxes or trying to - right, trying to reduce its tax bill, moving jobs overseas to pay you know less in wages. And then Trump comes
out today and blasts Ford for a similar tactic. So both of these candidates, if you're not playing close attention, you almost can't
distinguish Trump from Bernie in this - in this issue.
LAKE: I'm sure Trump not probably supporting killing the tax inversion but they're all jumping on the sort of populous anger, corporations are not
being good citizens.
ALESCI: Yes, and Trump is saying we're going to lower the corporate tax rate which I'm sure is not Bernie's position, right because Trump is out
there saying we're going to make it easy for companies to stay in the U.S. by making it more fair.
By the way companies want corporate tax reform too because they say we're getting banged on U.S. taxes here and overseas. That's not the way most
other western countries work, right, where you get taxed is where you make your profits. You don't get taxed twice in your home country and in the
country that you're making those profits. In the U.S., you get taxed here and then when you try and move money back from whatever country you're
making it in, you get taxed again.
LAKE: And that's what they're saying, they wouldn't pursue this. So in their own way, they're pushing for congress to try to change the laws as
well saying we need to take a look at this -
ALESCI: Congress has to do that -
LAKE: -- but in an election year with so much on the line, the likelihood of that getting done, which is by the way why some people thought this was
surprising, this is Obama's administration in the last stretch of it. They didn't think that they were going to play hard ball on some of these issues
that has seen investors caught off guard.
Cristina, thank you so much for that that's one we're going to have to watch.
Now fears about the health of the global economy weighed on U.S. shares.
(BEGIN VIDEO CLIP)
LAKE: The Dow ended the day down 133 points, it's the worst day for the Dow in six weeks.
(END VIDEO CLIP)
LAKE: Donald Trump says he'll pressure Mexico to pay for a wall on the U.S. border by stopping money transfers into Mexico. President Obama's swift
response, good luck with that.
(COMMERCIAL BREAK)
[16:15:55]
LAKE: PayPal says it's scrapping plans to build a new office in North Carolina because the new state law discriminates against LGBT individuals.
(BEGIN VIDEO CLIP)
LAKE: President and CEO Dan Schulman said in a statement, "fairness, inclusion and equality are at the heart of everything we seek to achieve
and stand for as a company. And they compel us to take action to oppose discrimination."
(END VIDEO CLIP)
LAKE: The bill makes it more difficult for cities to pass nondiscrimination legislation and disallows transgender individuals from using bathrooms that
correspond with their gender identity.
(BEGIN VIDEO CLIP)
LAKE: Mississippi became the fourth state to enact a similar bill, saying it is to protect religious freedom. On Tuesday seven other states have
similar legislation pending, you can see them here in yellow.
(END VIDEO CLIP)
LAKE: Polo Sandoval joins me now. And Polo this is an issue that's been bubbling along but we seem to be sort of reaching a critical point here.
POLO SANDOVAL, CNN CORRESPONDENT: Yes, absolutely that's a great point Maggie. This really has been percolating in several southern states,
especially after last summer's U.S. Supreme Court decision to legalize gay marriage. So what we've seen is a really a series of states introduced
several bills that as we saw in the U.S. state of Mississippi today, be approved by the governor. Obviously this has been met by outrage among some
opponents. Many people who believe that it really lends itself to at least discriminatory practices on behalf of several state offices and also
several businesses as well.
In fact just a few moments ago, I had an opportunity to speak to a constitutional law scholar who described this as political fodder, which
obviously he is someone who does not agree with this. Because the law is written in such a way that, again, in his eyes, it opens several people to
discrimination, including of course members of the LGBT community there in Mississippi.
LAKE: That's right, and they're not actually countering the Supreme Court ruling, they're kind of getting around it by sort of saying we're
protecting religious freedom. We're not saying yes discriminate against these people but opponents would say, in effect, it means the same thing.
It's interesting to see businesses come out and say, you know what, we're going to pull our headquarters out. Is this something that's likely to have
an impact? Are businesses, do they have the reach and the financial sort of muscle to make a difference here?
SANDOVAL: It's a very important question there. It's obviously a very critical factor and we did see that in the state of Georgia for example. We
did see several high-profile companies that are based out of Georgia really did put pressure on the governor to veto similar legislation.
In Mississippi, though, obviously that really did not happen despite several high profile businesses trying to put pressure on Governor Phil
Bryant. For example, there is Nissan, car manufacturer that employs really several thousand individuals in one town of Canton. They called on
lawmakers to table this and of course on the governor to not sign it. But despite that pressure and despite the unified chorus of opponents, we did
see that development today.
The governor is saying that he signed that law - signed that bill into law because in his own words it passed the legislation with a strong vote and
of course protects the rights of several people in Mississippi.
Ultimately, though, the main question is what happens next. I did speak to that - again I spoke to that constitutional law expert who says that they
will have to wait to potentially see the first plaintiff, somebody who comes forward with complaints and a case against the State of Mississippi
before they can consider the law or at least a bill that was signed into law today. Maggie?
LAKE: So it's going to be kicked back into the courts. All right, Polo, we'll watch it closely, thanks so much.
SANDOVAL: You bet.
LAKE: A new memo from Donald Trump says if he were to become President, he would leverage U.S. anti-terror laws to stop money wiring companies like
Western Union from sending some transfers to Mexico.
(BEGIN VIDEO CLIP)
LAKE: The Republican Party frontrunner rights that the move would put pressure on the Mexican government and make them pay for a border wall
between the two countries. President Barack Obama says that plan is entirely unworkable.
[16:20:04]
OBAMA: First of all, it's impractical. We just talked about the difficulties of trying to enforce huge outflows of capital. The notion that
we're going to track every Western Union, you know, bit of money that's being sent to Mexico, you know, good luck with that. Then we've got the
issue of the implications for the Mexican economy which in turn, if it's collapsing, actually sends more immigrants north because they can't find
jobs back in Mexico. But this is just one more example of something that is not thought through and is primarily put forward for political consumption.
(END VIDEO CLIP)
LAKE: Mark Preston is CNN Politics Executive Editor, and he joins us from Washington.
Mark if you've been paying attention to what's been happening with the Trump campaign over the last week, you might think that Donald Trump would
want to sort of take a more cautious tact, you know, act more Presidential and sort of take a high road. And yet, again, we're getting very
controversial remarks coming from him.
MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: You know Maggie, that's not the Donald Trump you and I and all the viewers around the world know. I
mean imagine if Donald Trump was somebody who was very quiet, and somebody who thought things through as opposed to just saying them straight out.
(BEGIN VIDEO CLIP)
PRESTON: You know what was very interesting about President Obama today, not only did he talk about the policy implications of trying to block this
money, he also said and this is the first time I've heard him say this and perhaps he has said it earlier is that he is starting to hear from world
leaders now who are asking him about the wacky proposals that are being put forth by Donald Trump and other Republican candidates.
Now, who knows if that's true or not, but if it is true, can you imagine what viewers, our viewers, around the world are thinking as they are
looking into seeing what's going on in this Republican Presidential race.
(END VIDEO CLIP)
LAKE: Yes, no, I mean it is extraordinary. And by the way that is whether they said it to Obama, it's certainly something that we hear on our air all
the time, that there's grave concern from leaders. You know President Obama said this is not a real proposal, this is just political fodder, but that's
exactly what Donald Trump wants, right? He had a tough week this speaks to his core. There are a lot of people who gravitated to him from the very
beginning because he took a hard stance on immigration, because he's talking about not relocating jobs. He knew exactly what he was saying.
PRESTON: He did, you know and Maggie you know his rhetoric has driven him to the top of the polls and to this point in the campaign. But in many
ways, though his inability right now to really understand the process about how you win the Republican Presidential nomination is starting to show his
biggest weakness.
(BEGIN VIDEO CLIP)
PRESTON: It's very complicated, we don't have to go into all the details, but basically Donald Trump's campaign has been based upon media interviews,
free media, and his ability to go out and say something that draws all the attention. He takes all the political oxygen out of the room.
However, you don't win the Republican Presidential nomination that way.
(END VIDEO CLIP)
PRESTON: And that's why tonight as we look at the state of Wisconsin, here in middle America, if Ted Cruz the Texas Senator wins the state as polling
shows that is going to show that Donald Trump has in fact been hurt by this really terrible week that you've spoken about, and could hurt his path to
the Republican nomination.
LAKE: The other thing Mark as we get further and further down the road here, while all of the sort of you know interesting comments and the
fighting back and forth what seems to be tripping him up now are getting deep in the details. And I did notice that President Obama while not
criticizing whether it was an ethical comment or whether it was the right policy, right down to this doesn't work actually, if you walk this through,
the details of this are impossible to actually get them to work. It does seem like Donald Trump has a problem, whether we're talking about nuclear
policy, especially on the international front, when you drill down in the details of things, this is where he seems to lose his way.
PRESTON: Absolutely. And it is interesting you know what President Obama said is that he is trying to boil it down to something that is
understandable by the voters as well. This just isn't going to work. And that's Donald Trump's biggest strength so far is he doesn't get into the
policy details, he just says he's going to make America great again. That he's going to build this great beautiful wall along the southern border of
the United States between Mexico and the U.S. Which is really not feasible because Donald Trump says that the Mexican government is going to pay for
it. We all know the Mexican government is not going to pay for it. And that's why you're seeing these policy papers by Donald Trump on remittances
by trying to find a way to collect that money or at least to show that he has a plan to pay for one of those policy proposals, in this case, the wall
along the southern border of the U.S.
LAKE: All right, we'll see if it resonates with voters, a big primary tonight. Mark, thanks so much. Mark Preston for us.
PRESTON: Thanks Maggie.
LAKE: 42 delegates are up for grabs on the Republican side of that Wisconsin primary.
(BEGIN VIDEO CLIP)
LAKE: Polls show Donald Trump trails Texas Senator Ted Cruz and Ohio Governor John Kasich isn't far behind. A Marquette University Law School
poll of likely Wisconsin primary voters conducted last week shows Cruz with 40%, Trump with 30% and Kasich with 21%.
(END VIDEO CLIP)
[16:25:10]
LAKE: Donald Trump has struggled to get the Wisconsin Republicans on his side. Several hundred seats were left empty at his rally Monday night in
the Milwaukee theatre.
(BEGIN VIDEO CLIP)
LAKE: Jerry Bader is the host of the Jerry Bader Show on WTAQ, a Wisconsin radio station. He has interviewed Donald Trump and joins us now from Green
Bay, Wisconsin.
(END VIDEO CLIP)
LAKE: Jerry, thanks so much for being with us. What is it that Wisconsinens are feeling skeptical about when it comes to Donald Trump?
JERRY BADER, HOST JERRY BADER SHOW: What I would say is this, that Wisconsinites in general, and I'm sure you've heard the talk show host
community specifically just hasn't accepted Donald Trump. There are a lot of factors.
(BEGIN VIDEO CLIP)
BADER: I think one is his behavior. Understand we've seen this act before and we've seen it from the left. In 2011, during Act 10, the raucous crowds
opposing Scott Walker, Donald Trump resembles that more than anything on the conservative side. That's left a bitter taste in our mouth. And quite
frankly, I'm proud to say for the most part we're above that type of thing in Wisconsin.
(END VIDEO CLIP)
LAKE: And so what do you make of the fact to me when I look at those polls, polls have been a little unpredictable in this election cycle, it's so
unusual, but all of them I guess you could argue are kind of running fairly close to one another. What do you make of John Kasich? Should he drop out
of the race? Does he have traction in Wisconsin?
BADER: Those are two questions, does he have traction in Wisconsin? There are those who suggest that he can surprise tonight and finish second. I
find that hard to believe. I think he seems to be pretty much where he has been as well as in other states. Should he drop out, seemingly both Mr.
Trump and Senator Cruz think it would be in their interest if he does.
(BEGIN VIDEO CLIP)
BADER: If, in fact, Senator Cruz wins tonight, there are eastern states where John Kasich could provide additional cover for Cruz and problems for
Trump. I guess my desire as a Cruz supporter, I've said I'd like to see him drop out. It's really difficult to say though what would be the best
forever either candidate.
(END VIDEO CLIP)
LAKE: And you say you're a Cruz supporter. What is it about Cruz you think makes him the right person to leave the Republican party and can he win
against either of the Democrats?
BADER: First, I will say this, I've been perfectly honest, my primary goal is to stop Donald Trump. That said, I believe of the two left standing to
do that, Ted Cruz obviously has the clearest path but I'm comfortable with his conservative positions. I think they're more conservative than Governor
Kasich. I haven't always been excited about his tactics in the senate to be perfectly candid with you but I think at this point he is the best choice
standing and can defeat Mr. Trump.
As for can he defeat Hillary Clinton or Bernie Sanders, I really think is it possible, yes. You know when you look at how close the matchups are
right now, with he and Mrs. Clinton, it's a different story with Bernie Sanders, with he and Mrs. Clinton, who would be likely the Democratic
nominee, it's awfully early I think for those type of head to head matchups. So as close as he is, yes, I certainly think it's doable.
LAKE: You know Jerry, you said something interesting to me which is that a vote for Cruz for you is really a vote against Trump. It seems like almost
everyone you talk to in this election isn't voting for someone, they're sort of voting to block or against someone and I've heard from people who
say they don't like anybody on either side whose in the race, so kind of disgusted with the whole process. Should we worry about that, if this has
been such a turnoff and so much negativity and people are not feeling enthusiastic about their leader?
BADER: Well, here's what I - Donald Trump supporters are pretty enthusiastic about Donald Trump, so I don't know that I would necessarily
entirely agree with your premise but I get the point.
Now they're voting for Donald Trump, there's no doubt about that. As for the rest of the pack, it would seem to be to a degree.
(BEGIN VIDEO CLIP)
BADER: Now yes, look, I know people who are voting - holding their nose and voting for Cruz. I'm not there, I think he would be a perfectly good
President.
(END VIDEO CLIP)
BADER: In terms of excitement, you know people - people who are supporting Bernie Sanders, two -- both of my adult children, they love Bernie Sanders.
What I would say is the insurgency candidates have the passion this year.
LAKE: Yes, but as we know sometimes that passion that you see in a primary doesn't translate to a general election. Voter turnout is going to tell us
everything we know. It's been high in the primaries let's see what happens in the general.
Jerry, thank you for taking the time and giving us the view straight from Wisconsin, appreciate it.
[16:30:00] Now some news we have to get to just in to CNN. FIFA President, Gianni Infantino has just released a statement saying he won't
allow his integrity to be doubted after allegations of wrongdoing surfaced in the "Panama Papers."
The role Infantino played in a T.V. deal while he worked for Europe's football governing body UEFA, is being called into question. He writes, "I
would like to state for the record that neither UEFA nor I, have ever been contacted by any authorities in relation to these particular contracts.
Moreover, as media themselves report, there is no indication whatsoever for any wrongdoings from neither UEFA nor myself in this matter."
And when it comes to live sports, you've heard of the broadcast rights and the digital rights. Now there's social rights. We'll explain after the
break.
(COMMERCIAL BREAK)
Hello, Maggie Lake, coming up on the next half-hour of QUEST MEANS BUSINESS, I'm speak to the David Plouffe, the Chief Adviser to Uber on its
plan for expansion in the Middle East. Plus Tina Brown shares her thoughts on the roles of women in the world and the current U.S. elections. Before
that, these are the top headlines we're following this hour.
Iceland's prime minister has resigned following the leak of the so-called Panama Papers. The confidential documents from Mossack Fonseca, show the
prime minister had ties to an offshore company withholdings in Iceland's failed banks. A short time ago I spoke with the deputy leader of Iceland's
Independence Party part of the prime minister's coalition. He told me it is important the political process not threaten Iceland's fragile economy.
(BEGIN VIDEO CLIP)
GUOLAUGUR THOR THORDARSON, INDEPENDENCE PARTY PARLIAMENTARY GROUP DEPUTY LEADER: Of course this is a shock and I think it's important for us to try
what we can to build up trust both of the Icelandic financial sector and also as the Icelandic economy, which has been doing really well.
(END VIDEO CLIP)
LAKE: And more news from the Panama leak, Pakistan Prime Minister Sharif announced today there will be a formal investigation into allegations
linking his family to offshore companies. The prime minister says the commission will be led by a retired Supreme Court Judge and will probe the
family's assets to determine whether there was wrongdoing in their investments.
[16:35:00] We're just hours away from the first result in Wisconsin's privilege pivotal presidential primaries. Voters in the U.S. state are
choosing presidential nominees today. The Republican front-runner Donald Trump could be dealt a setback in his effort to clinch enough delegates to
secure the Republican nomination.
U.S. President Barack Obama has praised new rules that would make it harder for American companies to move abroad for tax reasons. The treasury is
looking to crack down on loopholes that allow for so-called tax inversions. Mr. Obama says the current loopholes are unfair to the middle class.
(BEGIN VIDEO CLIP)
BARACK OBAMA, UNITED STATES PRESIDENT: Companies exploit loopholes like this, it makes it harder to invest in the things that will keep America's
economy going strong for future generations. It sticks the rest of us with the tab. And it makes hard-working Americans feel like the deck is stacked
against them.
(END VIDEO CLIP)
LAKE: Pope Francis is heading to the Greek island of Lesbos, that's according to the Greek government. His potential visit in mid-April is
welcomed by the government to help provide relief to the migrants. The announcement comes after the Pope said he wants to draw international
attention to the migrant crisis in Europe.
Twitter has won the rights to live stream 10 of the NFL's Thursday night football games in their entirety. The social media company has up against
several digital heavyweights. CNN Money Business Correspondent, Samuel Burke, joins me now. And Samuel, this sounds like a real coup for twitter.
SAMUEL BURKE, CNN MONEY BUSINESS CORRESPONDENT: Everybody keeps saying this is a touchdown for Twitter and for the NFL. But I'm not quite sure
and I don't think investors are quite sure. The stock has been going up and down a little bit all day long and actually just finished a little bit
under from where it started earlier in the day. The thing is Twitter has to pay a reported $10 million for these rights and I think they're in
unchartered territory. How do we know for sure that people are going to want sit in front of Twitter instead of in front of their television
screens to watch an entire NFL game? They last a long time.
LAKE: Yes, but we know people gravitate to live sports. So obviously, Twitter is trying find its way. We'll see if the gamble pays off. What
about for the NFL? Is this a good move for the NFL?
BURKE: I think it's a big win for the NFL because they're experimenting with so many platforms and they have their games on so many platforms. I
went through and I made a list of all the places that they're broadcasting now, or narrowcasting. And so if you go through they sell their rights to
the broadcasters here in the United States, CBS and the NFL. Digitally you log on if you have a cable subscription and watch them on the website.
Mobilely if you have Verizon wireless here in the United States you can watch on your cell phone. And now on social media, the social media rights
to Twitter. So if you're an investor in the NFL, I think you're feeling really good because all those places are paying you regardless of whether
people show up or not.
LAKE: Yes, but where they make a lot of their money as well of course, is the fact that they draw the advertisers. That's how they can charge those
massive rights price tags by saying to the networks that we're going to deliver you all these people on these games. Aren't they going to
cannibalize their audience somehow? If they're spread to thin, do they get that destination viewing?
BURKE: And that's what a lot of people are afraid about, but look, they're putting their eggs not all in one basket, in many different baskets. Not
putting it all there. I think what the assumption they're working under is maybe one day people won't be watching television. I have a lot of friends
who don't even have a television set. And so they can maybe get to these viewers. Establish a way to watch already and be ready for the day when
people really start migrating in masse, even though we're not there yet. Even if it doesn't happen at least they experimented and got a reported $10
million along the way.
LAKE: Yes, that's right, and it's really interesting that if Twitter is able to beat out Facebook and Amazon, you sort of wonder the NFL choosing
to link their brand with them. I mean it is an endorsement of some sort. So we'll see if it pays off. All right, good news for customers as usual
in these media wars. Thanks, Samuel.
Well with exactly four months to go until the Olympic Games in Rio de Janeiro. Brazilian President, Dilma Rousseff, says she does not plan to
shake up her cabinet before the vote on her possible impeachment. The country is headed toward the games in the middle of a huge political and
economic turmoil. CNN's Paula Newton has more.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN, CORRESPONDENT (voice-over): Take a stroll on the beach and at first it seems nothing's changed. Brazil's cliches ensure. Its
gorgeous beaches. Its fun loving attitude. Its image as the country of the future.
(on camera) But you take a closer look and you wonder what happened. Well, it's a political and economic drama so devastating it's shattering many of
those cliches.
[16:40:00] (voice-over) First up, the economy slashed by Brazil's worst recession in a generation. One that could turn into an all-out depression
by year's end. Unemployment is close to 10 percent. Thousands of businesses have closed. Nacia Hosha (ph) has been running this Rio
restaurant and bar for more than a half century. Tells me, "Of course we're living through a crisis and the scope of it is the worst I've ever
seen."
Could things get worse? They just did with a crushing political drama. Brazilians are outraged by a scandal so sordid it already implicated more
than half the country's national politicians in a kickback scheme allegedly orchestrated by the state run national energy conglomerate, Petrobras, and
that's not all. Brazilian President, Dilma Rousseff, is cornered by a budget scandal that could see her impeached within weeks. Here predecessor
Luiz Inacio Lula da Silva once revered as savior of modern Brazil, also under investigation for kickbacks.
Brazilians are devouring news from Watergate style wiretaps in every corner and crevasse of their everyday lives.
UNIDENTIFIED MALE (on camera): Thieves. It's sad but they're thieves.
NEWTON: How can you guys cope? How will you cope?
UNIDENTIFIED MALE: Embarrassing.
NEWTON: Embarrassing. The whole thing?
UNIDENTIFIED MALE: Embarrassing.
NEWTON (voice-over): And to crack confidence still further, Brazil is coping with Zika, a mysterious virus stalking the country, one that may
caught a devastating neurological disorder in hundreds of newborns. Brazil's already challenging favelas, there is fear.
"We're worried about the situation," she tells me, "and we're trying to cope."
(on camera) So we have a country shattered by economic despair, demoralized by a political crisis and plagued by Zika. And through all this in just a
few short months Brazil welcomed the world for the Olympics.
(voice-over) So we went to the museum tomorrow. Olympic legacy project. Incidentally -- its construction also implicated in the kickback scheme --
to find out how Brazilians plan to deal with it all.
UNIDENTIFIED FEMALE: Well, we're going to put it on pause?
NEWTON: Pause?
UNIDENTIFIED FEMALE: And no Olympic Games and won't -
NEWTON: Start the circus again.
UNIDENTIFIED FEMALE: Yes. No it's a mess.
LAKE (voice-over): A mess and a reminder the even with the Olympics coming Brazilians are struggling to hold on those classic cliches that once mad
them so proud. Paula Newton, CNN, Rio.
(END VIDEOTAPE)
LAKE: Uber is the most valuable start-up in the world. Now it's making a push to expand in the Middle East. Uber chief advisor and former Obama
campaign manager David Plouffe, will join us next.
(COMMERCIAL BREAK)
LAKE: Economic activity in Egypt has fallen to its lowest level in nearly 2 and a half years. A slump in tourism in the wake of security threats is
hurting the already ailing economy. It's a challenge for ride share company Uber. It's trying to expand in Egypt and throughout the Middle
East. David Plouffe is Chief Advisor to Uber, and Barack Obama's former campaign manager. He joins us now from San Francisco. David, thanks for
being with us once again. Are you seeing much of an impact from the security threats? Has that impacted business there?
[16:45:00] DAVID PLOUFFE, CHIEF ADVISOR, UBER: It hasn't. I was in Cairo recently, and it was one of my more amazing trips I've taken for Uber.
Obviously, as you pointed out, the economy is struggling. And we're onboarding over 2,000 drivers a month. And went through where we had 600
drivers showing up, kind of on the edge of their seat, looking to put their phone in their car to work. And you know, and like everywhere else in the
world, their stories were different. Some were looking for a relatively long time as their main source of income. Others were looking just to add
a little income. So I think it's at a time when we obviously, want tourism to come back, the economy to come back. We on scale could be a pretty
important part of the economic story there.
LAKE: I can imagine why they'd be drivers looking for work. Where's the business coming from in terms of passengers if the economy is struggling?
Where's the demand?
PLOUFFE: Well, it's interesting, it's a great question, Maggie. But as it turns out, even though our service offerings differ a little bit city-to-
city, that core principle, there's a lot people looking to press a button and get a different way to get around their city. And a lot of people look
and press a button to get work. That's true everywhere. In Egypt, obviously, epic congestion in Cairo. So a lot of people looking for a
different way to get around. And you know, we're trying to bring offerings at every price point. And ultimately, we want this available to the more
exclusive offering of Uber Black, for people who may be going out for an anniversary dinner or a business outing. Down to Uber pool, which is our
carpooling service. So it makes it available to everybody in the city.
LAKE: Which is interesting, because it isn't something we think about very often, but when times are tough, people can't cut back on transportation,
they still need to get around. So it is a bid resistant in that respect. How are you grappling with some of the other challenges this presents?
Because I can imagine when I saw you were thriving in Cairo, I was shocked. I'm sure other people are too. That you're pushing into such a difficult
area. One of the issues we know, that comes up just security threats for the country, but the safety of female passengers. Whether they are drivers
or whether they are clients using your service. How have you grappled with that? Are you learning as you enter these developing economies?
PLOUFFE: We are but obviously, I think one of the reasons we've grown so fast around the world is people feel very safe using the service. So, I
mean, it's interesting I was in Riyadh on the same trip when I was in Cairo. And there, it's fascinating.80 percent of our riders in Saudi
Arabia are women. So as you're trying to see more women join the workforce, obviously transportation is a challenge there. But generally
the notion we conduct background checks that differs a little bit by country. But obviously we want to make sure we're keeping people out of
the vehicle who shouldn't be there. But the real game change is on the ride and after the ride.
So the entire ride is GPS tracked. No matter where you are in the world, you're able to share your ETA with anybody you want. And obviously, you
rate the driver, and the driver rates you. So the safety of the drivers is important as well. We're continuing to invest in R&D. We're continuing to
experiment. I think there's a lot more we can use technology for to make it even a safer experience. But that core proposition that you're
surrounded by a suite of technology at all times. And there's no anonymity. You know who you're getting in the car with. What their car
is, what their license plate is. And I think that's a big change in terms of for hire vehicle training.
LAKE: It certainly would seem like somebody who will give you advantage over the local competition. We don't have the pockets for that R&D. I
have to ask you of course as we do, if you were coming on with your background as a campaign veteran. We're right in the middle of an election
cycle here in the U.S. I wonder what you make of this anti-establishment momentum that we're seeing. You sort of rewrote the rules when it comes to
organizing on a grassroots level, using technology. What do you make of what we've seen in this election cycle in terms of the momentum behind the
anti-establishment candidates?
PLOUFFE: Well, it's a great question. You're seeing it around the world I think sort of anti-establishment candidates, populous candidates are doing
well all around the world. Here in the U.S., we have them in both parties. Donald Trump and Bernie Sanders are both tapping into growing populism in
our Republican and Democratic Parties. Technology, obviously does allow that to then be harvested for support. We certainly did that in the Obama
campaigns. What's interesting about Trump is he's not creating the conditions for his rise. He's tapping into them. But he's not running a
traditional campaign.
Very little as far as I can tell, real grassroots organizing on the ground. Not a sophisticated use of data. But obviously he's tapping into an
explosive desire for something completely new and different. So that's the number one thing happening in this election obviously. Particularly
Republicans, I mean, they're as angry as the their establishment as they are at the Democratic establishment, which is very, very interesting. And
so that's why some of the things that you might traditionally would sink another candidate, when Trump says these outrageous things or challenges
establishment figures, it doesn't hurt him. Because that really is the source of where so much of his strength comes from.
LAKE: Yes, we are seeing something of the like of that we have not seen before. It will be interesting to watch. David, thank you so much for
being on, and please come back and talk to us about Uber's push into some of these markets that are so familiar to some of our viewers. Thanks so
much.
PLOUFFE: All right, thanks, Maggie.
LAKE: Well, just a few minutes ago, you saw her ring the closing bell at the New York Stock Exchange. In a moment, Tina Brown tells me the
Republican presidential race in the U.S. has been hideously misogynistic.
[16:50:00] (COMMERCIAL BREAK)
LAKE: The Annual Women in the World Summit, founded by Tina Brown, kicks off in New York City Wednesday. It features female leaders from around the
globe including News anchor Megyn Kelly, U.S. presidential hopeful Donald Trump has blasted Kelly for the question she asked him during a debate. I
sat down with Tina Brown and asked her what she makes of the negative tone surrounding women in the Republican race.
(BEGIN VIDEOTAPE)
TINA BROWN, FOUNDER, TINA BROWN LIVE MEDIA: I think we've seen a hideously misogynistic race thus far in terms of tone. And indeed another theme of
our summit this week in Women in the World is misogyny whether it's frankly when it comes to ISIS and the terrible things in the war on terror, but
also in this country You know, in Texas for instance, where the clinics were closed down by a piece of legislation Rick Perry brought to bear.
You're seeing women have to drive 200 miles to get a mammogram and a pap smear because of the ideology about clinics that also perform abortions.
It is absolutely ridiculous and heinous that women can't get health care because of some kind of ideology put in place.
LAKE: And this is happening in the same election where we might actually see a woman take office.
BROWN: Indeed.
LAKE: Is it time, would that change things?
BROWN: Absolutely. I feel even if it's not this woman, we've got to have more in the political process to talk about these things. Because what
we've seen in this election, when it's at a purely male driven competitive testosterone saga, which is what it has been to a point that everyone is
aghast as to kind of the sophomoric nature, a lot of it. You just thought what are the real issues that everybody are talking about? They're
actually not talking about most of the stuff being discussed on the platform, you know, so we have so far to go and I don't know why it's been
quite the, you know, crazy meltdown we've seen. But it does make you wonder, you know, we need a woman's wisdom in this mix, that's for sure.
If this is what we're going to get when the world is run by men, I'm sorry but it's time to cool out.
LAKE: Should we just dismiss it to American politics and the campaign rhetoric. I mean, we know that it gets dirty. We have a whole documentary
series on the race for the White House now and how it's been in the past. Or is there danger that this damages the U.S. reputation and that is a
concern especially for the international community?
BROWN: I think it's a concern. I just came back from being in India and also in the UAE. They're aghast, they're appalled. They don't understand.
Because they actually a lot of people there are very disappointed. Because it's like they're trying to so they're reforms. They're trying to make
life better. They're try to teach a new norm. Like in India has tremendous problems with misogyny and with the way women are treated. It's
like a war zone half the time in rule India, the way women are treated. They thought America was like the great beacon they were supposed to look
up to, let's do things better like they do in terms of the way we treat women. And all of a sudden there's so many people are talking like the
kind of sort of rhetoric that was supposed to outlawed. So they're very baffled and they're very sort of disappointed is the word, and very
anxious. I mean very, very anxious, but they feel, you know, what's going to happen to us if we really are in a world where this kind of Xenophobia,
trade wars, misogyny.
[16:55:00] I mean it's not a pretty picture. So no, it has definitely not been a good year for America overseas. Clearly, it can all change. Tones
change very fast but a lot of anxiety overseas when I travel.
LAKE: You say it's hard to have stability without women being involved and empowered. Why is that so important?
BROWN: If you look at any country that's a national security threat, it's always a country where the women are disempowered. Because it's really the
kind of canary in the mine. It tells you that country is regressive, that country is behind, that country doesn't know how to treat half its popular.
That why is always the colliery of national security and women. But also women have different kinds of solution. Women are less different by the
testosterone of the moment. Every time you bring women into the mix, it actually makes a difference. Whether it's in the board room, in corporate
life or whether it's in peace processes and running a country. I mean you're seeing a place like Rondeau, which has such a huge amount of women
and, you know, it's made a difference in keeping that country safe.
(END VIDEOTAPE)
LAKE: Interesting thoughts there from Tina Brown. We'll be back in just a moment.
(COMMERCIAL BREAK)
LAKE: Time for one last check on the markets. Fears about the health of the global economy weighed on Wall Street. The DOW closed off 133 points,
it was the worst performance for the DOW in six weeks. I guess we had to have a downturn to at some point in time. European shares also fell
sharply. German stocks were hit the hardest, that was due to a report that showing German factory orders fell in February. Shares of Peugeot shares
fell 6.5 percent after the automaker announced its five year strategic plan.
So not a great day for stocks. Perhaps a more glamorous investment suits you better. This is a rare blue diamond that just sold at auction in Hong
Kong for $32 million. The 10.10 carat diamond is now the most expensive gemstone ever auctioned in Asia. The world record was set in November when
12 carat diamond sold for $48 million in Switzerland.
That's QUEST MEANS BUSINESS. I'm Maggie Lake in New York. The news continues on CNN.
END
