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Quest Means Business
WhatsApp Founders Say Encryption Helps Fight Cybercriminals, Hackers and Rogue States; Cruz Says Voters have "Rejected" Trump; Clinton Looks to CNN Debate After Wisconsin Defeat; Belgian Prime Minister Vows Reforms After Terror Attacks; Amnesty International Reports that Executions Are At the Highest Level in 25 Years; Jury Deliberates Over 1989 Hillsborough Disaster; UEFA HQ Searched By Swiss Police; U.K. Shows Brexit Vote is on the Knife-Edge; Wetherspoon's Chairman Wants Britain Out of the E.U.; Huffington Thinks Trump Needs More Sleep
Aired April 06, 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]
RICHARD QUEST, HOST: Closing bell is ringing on wall street. Dow Jones is up over 113 points, it's a strong performance for the U.S. Market reversing
some weakness over recent days. And as the gavel is hit, oh, yes, go for it, you can do it. The robust gavel that brings trading around the world to
a close. It's Wednesday. It's the 6th of April.
(BEGIN VIDEO CLIP)
QUEST: Tonight, one of history's biggest mergers is scrapped, and you can blame or thank the U.S. government for doing it. The Republican party is
heading for a very unconventional convention. And Mark Zuckerberg calls it the golden age of video. Facebook is going live.
(END VIDEO CLIP)
QUEST: I'm Richard Quest. I mean business.
Good evening. A $150 billion deal gone. The proposed merger between Pfizer and Allergan has become the first and quickest casualty of new U.S. rules
that crack down on so-called corporate inversions. It would have been the largest pharmaceutical deal in history.
(BEGIN VIDEO CLIP)
QUEST: Remember, Pfizer, which is based in New York, has been vocal in criticizing the U.S. tax code. By moving its headquarters to Ireland,
reverse inversioning into Allergan, it would have greatly benefitted from lower tax rates.
(END VIDEO CLIP)
QUEST: But new U.S. rules came into play from the treasury. And it took only two days for the rules to scuffle the merger. It's all about whether
uncle Sam can tax a new merged company.
These are the rules that are complicated, but bear with me.
(BEGIN VIDEO CLIP)
QUEST: Any foreign company taken over by an American rival will pay U.S. taxes if the new business is 60% owned by the U.S. shareholders. So the
goal, get below 60%. If the foreign company can make itself look larger by buying smaller companies, then that 60% gets harder to hit. So Allergan
banked on the merger loophole with lots of other transactions, all of which would make it difficult to hit 60%.
However, that's what Allergan was hoping to do, but these new rules say that in the last three years deals done no longer count when deciding how
big a company was. All those earlier deals of Allergan simply don't count.
(END VIDEO CLIP)
QUEST: On Tuesday President Obama said those kind of loopholes were unfair to the middle class.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When companies exploit loopholes like this, it makes it harder to invest in the things that are
going to 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)
QUEST: Now, the proposed merger between Pfizer and Allergan, it's not the only one that's in the works. Join me at the super screens and you'll see
what I'm talking about.
(BEGIN VIDEO CLIP)
QUEST: So you have IHS and Market in the United Kingdom, that's two deals that are possibly now a little bit more risky. You've got Johnson Controls
and Tyco in Ireland. And you've got Waste Connections and Progressive Waste Solutions in Canada. Now, so far none of them show any signs of being
scrapped because possibly the new rules don't hit the way these companies have actually run so far.
The rules introduced by the treasury on Monday night were very specific with this three-year limit. It was very much designed because they knew
that if you took away the three-year limit then Allergan wouldn't hit 60%.
(END VIDEO CLIP)
Sandy Levin represents the State of Michigan in congress, he's the ranking member on the Powerful Ways and Means Committee. We're honored to have you,
sir, with us. You were with me earlier in the year and you very much made it clear you wanted these inversions stopped. So you applaud, obviously,
the measures by the treasury of what they've taken.
REP. SANDY LEVIN, D-MI: For sure. You've described it very well. I think you used the word gimmick. And that's really true. And what the treasury
said was, look, there were serial inversions here. And then there was an effort to use them to get around U.S. Law. And essentially for Pfizer to
maintain itself in this country, gain all the benefits but go to Ireland to get a lower tax. And the average citizen in the U.S. can't simply change
their residence, their address and pay a lower tax. Neither should Pfizer. That's really what this is all about.
[16:05:18]
QUEST: But is it right that the treasury should change the rules in the middle of the game? I can understand how this would be relevant for a
future transaction, but Pfizer and Allergan had already put together their deal under existing rules. Surely they should be entitled to complete it
under existing rules.
LEVIN: I don't think so. Look, Pfizer had adequate notice. We've been introducing legislation for years, and we were on your show earlier to
discuss it.
(BEGIN VIDEO CLIP)
LEVIN: So there's been fair warning to countries and to companies that action needed to be taken. It was going to be taken by congress hopefully.
If not treasury would continue to use its authority.
(END VIDEO CLIP)
LEVIN: And that's what the treasury has done. So no one can claim they're innocent in terms of some kind of notice that we're going to crack down on
inversions when the main purpose is to escape taxation. You know, people in this country the same is true in Europe, are tired of people using
loopholes to take advantage and lower their taxes when the average citizen can't do that. That's what's this is all about. And the average company
can't do that either. The average small business in this country can't simply change their address and pay lower taxes. So why should Pfizer be
able to do that? Why should they be able to do that? That's what's being asked by us, by treasury, by the President.
QUEST: When we look at -- and I would just like to get your thoughts. When we look at the Pfizer, the treasury, the inversions questions and the
"Panama Papers," which you'll be familiar with, the offshore which is now being revealed. Do you believe that there will be many examples of improper
use of offshore companies in the U.S. that will come out as a result of "Panama Papers?"
LEVIN: I don't know. We passed when the free trade agreement with Panama was put together, we insisted Panama signed onto what's called a tier, so
there would be transparency, we insisted on that, Panama signed onto that, and we want to make sure Panama has been enforcing it. That was a
requirement for FTA that a number of us insisted on. So we'll see what happens with that. But it's another example in other countries where
people, these very wealthy people or powerful people are using loopholes including people who head up governments. And the people are sick and tired
of it. They can't do it, why should the big-wigs be able to do it?
QUEST: But I always come back - whenever and I'm always delighted to have you on the program, sir. But I always come back to this problem. Why blame
people for using loopholes that maybe lawmakers like you have allowed to exist in the legislation?
LEVIN: Because we're trying to close them. We're trying to close them. We introduced legislation to close them. And so companies are trying to just
quickly skirt the requirements are coming on. They know there's an effort to crack down, and they're trying to essentially use a loophole before we
close it. There's a race to loopholes. And we want to stop it through legislation if possible, the Republicans hold it up. And if it can't be
done through legislation, through treasury using their authority. They're using their authority. And they should up to the letter of the law. And
then we're going to have to change the law, but no one should say they don't know it's coming. It's coming.
QUEST: Sir, we're grateful that you came along this afternoon and spoke to us on "Quest Means Business." good to see you as always, and looking well.
Now, a $35 billion merger between two giant oil companies is also under pressure. This time it's antitrust lawsuits from the U.S. Department of
Justice. It's lovely to have Cristina Alesci here to talk about this. Great that we're talking about good old fashioned business, M & A, mergers.
What's this one all about?
CRISTINA ALESCI, CNN MONEY CORRESPONDENT: Well, the bankers are unhappy about this, right? There's these two deals that are in peril in the last
two days. I mean Pfizer-Allergan dead as you just pointed out and now Baker Hughes Halliburton. But oddly enough when it comes to Halliburton and Baker
Hughes their stocks were up today perhaps because investors think that you know Baker-Hughes is a target for someone else. There's also a $3.5 billion
breakup fee potentially heading in the direction of Baker Hughes.
[16:10:03]
QUEST: But this - this objection by the U.S. Department of Justice, is this good old fashioned antitrust it's simply believed the two companies are too
big?
ALESCI: Oh yes, totally. The Justice Department -- I'm sorry, the government is saying right now that the two companies combined would have
90% of the sales in the U.S. But what Halliburton and Baker Hughes are arguing is that, look, this is global competition. We're trying to compete
with the likes of Slumberge and in the environment that we're in where oil is so low, you know, the industry kind of needs to get together and
consolidate to be a global competitor and that's what this is really all about. But the government is certainly coming out very strong against this
deal.
QUEST: To the markets. And what - I mean how much of what we saw today was the market going up 113 points or so Fed minutes released in the afternoon?
ALESCI: So that's a good point. The Fed came out with minutes that said - that basically reaffirmed what Janet Yellen said already, which is no April
rate hike.
(BEGIN VIDEO CLIP)
ALESCI: Right she didn't say it explicitly, but she may well have done that because now there's a zero chance for a rate hike in April. Traders are
putting the chances of a rate hike in June at about 23%, which is still pretty low. So we have this rally.
(END VIDEO CLIP)
ALESCI: And let me not forget to mention corporate earnings, even though they're on track to be the worst since 2009 companies are projecting an 8%
decline in earnings, CEOs may have set the bar so low that they are setting themselves up for success at the end of the day, right?
QUEST: It's not the first time we've had that, you know --
ALSECI: No, exactly.
QUEST: We've had expectations so low that you - if you - you know you're got to beat it or at least meet it.
ALESCI: And that's exactly the point. But at the end of the day there are a lot of market participants that really say this rally is losing steam.
QUEST: Thank you.
ALESCI: Thank you very much.
QUEST: Thank you very much indeed.
The Democratic and Republican candidates have found some surprising points of agreement when it comes to laying out a populous economic message. The
political divisions are as deep as ever.
Ted Cruz and Bernie Sanders picked up momentum with wins in Wisconsin. Now, this is how they look so far, but they have a long way to go before they
catch up with Donald Trump and Hillary Clinton in their respective leadership roles.
(BEGIN VIDEO CLIP)
QUEST: Let's take a look, for example, with the Democrats. Now, look Senator Sanders has won seven of the last eight contests. Seven of the last
eight, but he will need to win 77% of the remaining delegates to get to the convention or to at least be safe and free. So there you've got the
delegates to date. There you've got the delegates remaining. Hillary Clinton only needs 36% of those remaining to get to the magic number, he
needs 77%. And this is why we talk about the mathematics of it all.
Same for the Republicans where you're looking at Donald Trump. Donald trump wants to get to 1237 delegates. 1237, that makes him foolproof. That makes
him the nominee without any question, call or qualm. He's got 743 so far, Cruz is 510 and Kasich. These are how many are remaining. To get that to
that to that he needs to win 60%, he needs to win 88%, well, let's not worry about what John Kasich needs to get, he needs to get 125%.
It looks very likely that the Republicans will have the first contested convention in 40 years. Those are the positions, and this is how we get to
this. If you take, for example, the road to the White House. First of all, you've got to get to New York. You've got the delegates from New York, 95,
the Republicans 25. Senator Clinton or Secretary Clinton is looking past Wyoming to New York. She, Clinton and Trump are both expected to perform
well, remember, Trump is based in New York. Clinton represented the state in the U.S. Senate.
Then you go from New York onto Pennsylvania. Most of these votes biggest is in Pennsylvania with 17 and 189. From there you've got dozen states between
that and the conventions. You've got the Republicans Cleveland, the Democrats go to Philadelphia. With Ted Cruz acknowledging the nomination is
unlikely to be decided by then.
TED CRUZ, REPUBLICAN PRESIDENTIAL CANDIDATE: Either before Cleveland or at the convention in Cleveland together we will win a majority of the
delegates. And together we will beat Hillary Clinton in November. [ cheers and applause ]
(END VIDEO CLIP)
QUEST: David Gregory, you're too young to remember the last contested convention.
DAVID GREGORY, CNN POLITICAL ANALYST: I am. Thankfully.
QUEST: But you've read about it.
GREGORY: But I've read about it. Yes, exactly.
[16:15:05]
QUEST: So tell me, it's looking remarkably likely now that the Republicans will have a contested convention.
GREGORY: Yes, I just don't want to buy into that completely because, remember, this would be an open convention if Trump doesn't get to 1237. If
he's shy of 1237, the question becomes how far away is he. I mean, I've talked to some big time Republicans who are doing math along with everybody
else and they say look at the polling, Trump is doing well right now in the polls in New York, his home state, in Pennsylvania, New Jersey, kind of
home territory for him. He could run up some delegate math there and get very close to 1237. And then you get to the convention and you could do
some negotiations. And you could get to 1237 on the first ballot. That is still possible. If it doesn't happen, then we get to an open convention and
then you get, you know all bets are off at that point.
But I still think that as bad as today is for Trump, bad couple of weeks, potential unraveling, losing big in Wisconsin, he's got an ability to come
back here at least in terms of how to secure the nomination.
QUEST: So we need to understand, and humor me if you will because let's face it being you know, journalists we want the most lively scenario that
we can possibly come up in our fevered brains. And that's a second vote if it does go to a contested convention on a second vote with delegates free
to vote how they will. You can see Trump saying, hang on, I've polled millions more votes than all the others. I have got very close to the
number. And you're still going to deny me the nomination?
GREGORY: Well, again, if he's close to the number, and if he's that close that he can do some negotiations to secure that in the first ballot, and
that is what happened in '76, that the first ballot actually, you know, that he wins and that he gets the nomination, and there's all of that horse
trading that goes on before, fine. If it gets past that, then, look, the rules are the rules and they're set up that way for a reason. And then you
can have more of a consensus.
Look there are delegates who might be pledge Trump delegates on the first go around. These are local folks who are you know appointed or elected in
states who are part of the party apparatus, the Republican party apparatus. They could look and say, you know, look, this is not a good general
election candidate. If you look at some of the demographics, how poorly Trump is doing among women and how big a share of the white vote that he
would have to win that then people could say, no, we're going to put something else together.
He may walk out literally or figuratively, Richard, there's no question he could bolt to a third party, he could just do something dramatic. Whatever
it is. But those are still within the rules. And he may have a decent argument, but this is how the party has set up the rules.
QUEST: And as you survey the ground at the moment, I mean, is it still mathematically possible but highly unlikely for Sanders to dethrone or at
least prevent Hillary Clinton from getting the coronation?
GREGORY: I think it's extremely difficult. I mean, he would have to win overwhelmingly in states like New Jersey, like New York, California, down
the road. Remember, the way that you get delegates as a Democrat is different than in a Republican party. You don't have this winner take all
scenario.
So even last night he only got 10 more delegates than she did, and he beat her handily. So that's why this deficit of whatever it is 200-plus, 250, is
so difficult to overcome. And she's got the super delegates as well.
He's got money, he's got some momentum, he's got enthusiasm, of course supporters. She's going to be very hard to deny. And this is an important
fact, six of the last nine contests in 2008 President Obama, then Senator Obama lost and he lost to Hillary Clinton by a pretty good margin and he
still got the nomination. This is really about doing the math and not just looking at the message.
QUEST: Brokered conventions, contested conventions, we'll all be brushing up on what happened all those years ago. Good to see you, David. You'll be
there to help us understand it. Many thanks indeed.
Think about broadcasting with bells and whistles. Facebook is now upping its live video features. And I'll be discussing it with CNN's -- oh, for
goodness sake, where on earth is Samuel? He's in the corridor streaming, going live with Richard Quest, there's 113 viewers at the moment watching
him. And he'll be with us in a moment.
SAMUEL BURKE, CNN MONEY CORRESPONDENT: You're always right over my shoulder, Richard.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[15:21:20]
QUEST: We have reached a sad state in the world. It is not enough to actually live your life. You have to actually be seen to be living your
life and watching it while other people are living it at the same time. Because while I'm doing this, he's doing that. And over in the other part
of the studio there's another man who's -- what are -- we're coming to you in just a minute.
BURKE: That's the next guest.
UNIDENTIFIED MALE: And I'm on Facebook live too.
QUEST: Go back over there for a moment.
UNIDENTIFIED MALE: Hello everybody. Why do I have to go back over there? It's a free country.
QUEST: I'll be with you in a minute. It's a free country, but as you can easily tell anarchy has broken out on Quest --
BURKE: He doesn't let me touch the bell.
QUEST: You're not old enough to use this equipment. And what is this?
BURKE: This is Facebook live. You and I are used to being live on television but now whether it's periscope which really kicked this all off
in the social networks a little bit after (inaudible) or Facebook live, all the social networks are betting big on being able to live stream, not
delayed video, live stream.
QUEST: Why?
BURKE: Because, Richard, if it didn't happen on social media, did it ever really happen? People don't want to wait to post something. Posting
something an hour later is now passe, Richard. And now the social networks are cashing in. Today Facebook's rolling out a lot of new features for it.
QUEST: What would you stream?
BURKE: Well, me for example I went indoor sky diving the other day. So instead of waiting for it to air on CNN --
QUEST: But you stream yourself having breakfast?
BURKE: No, it has to be a little bit more pertinent than that but I've seen people live stream --
QUEST: Would you stream yourself having sex?
BURKE: The other person wouldn't agree to that.
QUEST: Would you stream yourself in the shower?
BURKE: Absolutely not.
QUEST: So the point I'm asking is what's the point of all this streaming other than to simply say -- I mean, this is the equivalent of, hello, dear,
I'm on the train.
BURKE: Your point is well taken. In fact, Facebook, there are reports that they're starting to pay big important people like the "New York Times" to
stream. It's just like anything else on social media. If you don't do it well, it's not going to be successful. You have to do something pertinent
and important. And then you'll get the traction and the attention that you want. Not the ubiquitous things you're speaking of, Richard.
QUEST: You may do those things ubiquitously some of us save it until Friday nights with the lights off. Let's talk a little bit about the downside to
all of this. The hacking issues, the questions of, you know, security, the questions of -- I mean, this all comes out of periscope and meercat.
BURKE: Yes, those were the first ones to do it and I think in a lot of ways we're moving past those type of security concerns because people are
choosing to put their lives out for everybody to see. They're choosing to turn the camera on. It makes the reality show -- it makes reality shows
seem pass,.
Yes, the delay I think here is about ten seconds, but the real point here, Richard, is that Facebook is the one that's moving ahead. Today they
unleashed features that are -- that go farther than periscopes, that go way beyond YouTube. YouTube was supposed to be the king of the internet and
this is only available on Samsung phones right now whereas Facebook has rolled it out for everybody right now.
QUEST: Have you read a book lately?
BURKE: Was it on Facebook?
QUEST: Samuel Burke, thank you.
Now from broadcasting yourself live to security. If you use WhatsApp you already know the Facebook messaging service that they arguably overpaid
for.
(BEGIN VIDEO CLIP)
[16:25:00]
QUEST: It has added end-to-end encryption making it impossible for third party to hack into a conversation. The news comes after Apple's major legal
battle with the FBI over encryption. Faced -- WhatsApp founders say "while we recognize the important work of law enforcement and keeping people safe,
efforts to weaken encryption risk exposing people's information to abuse from cybercriminals, hackers and rogue states."
(END VIDEO CLIP)
QUEST: Joining me to discuss this is Steve Case, the former CEO and co- founder of AOL, the author of "The Third Wave." The Third Wave, let's have a look, we'll plug the book as well. "The Third Wave" an entrepreneur's
vision of the future. Steve, first of all, what is the third wave and how does it differ from the first and the second?
STEVE CASE, FORMER CEO AOL: Well, I guess I should now turn this off so I can talk to you.
QUEST: Exactly. It's called conversation.
CASE: OK, conversation. Good-bye everybody on Facebook live. All right. First wave was building the internet, the second wave was building absence
services on top of the internet and the third wave is really integrating the internet throughout our lives, education, healthcare, transportation,
energy, even food and so we've seen a lot of investment, a lot of innovation in the first wave. Companies like AOL we started 30 years ago,
only 3% of people were online, people thought we were crazy. Now everybody's online.
The second wave we saw Facebook and Twitter and many apps extremely successful, but the third wave creates a new opportunity for innovation but
also I think it requires a new playbook which is why I decided to write the book.
QUEST: Right, this new playbook, because it's a transformation, it's not even an evolution or revolution, it's a transformation isn't it. And we
fundamentally do not understand how the internet whether it's the IOT, whether it's just the will integrate into our lives.
CASE: Correct. And I think it has the potential to empower us in new ways provide more personalized approaches to health, more adaptive approaches to
learning. But it's also going to create challenges and it's going to require more partnership between entrepreneurs and big companies and also
more dialogue between innovators and governments all around the world. Because some of these things are typical in terms of privacy issues and
other kinds of, you know, challenges. How do you get the benefits that are possible in the third wave while trying to minimize some of the risk.
QUEST: So what do you say, and I'm asking people of your ilk, what do you say to the FBI in answer to the FBI who says, we need to stop this
encryption, stop this end-to-end encryption, stop building a phone that we can't get into, we need to be able to get into it. Mr. Case, you are a tech
-- you are an entrepreneur in technology companies. My job, sir, is to keep people safe from being blown to smithereens. What's your answer to them?
CASE: My response to that is, I understand that, I respect that and we need to figure out what's the right way to leverage technology into the future
that strikes the right balance where people's privacy is protected, where technology companies can innovate, where security is a key part of that.
QUEST: But you supported Apple not cooperating with the FBI --
CASE: I did not - I did not, I have not looked enough at the details to basically have a strong view, but I think what's required particularly in
this third wave is exactly this kind of conversation. It's not the technology, it's the policymaker view, you need to have a dialogue and
figure out what's the right balance between enabling people and protecting people, both are important challenges.
QUEST: So how -- what's the fourer for this discussion for this debate? Which has to be - which not only which has to happen both at a national
level and at a global level --
CASE: Absolutely.
QUEST: What's the avenues and vehicles for it?
CASE: It starts by building more of a bridge within this country between what's happening with the policymaker in D.C. and what's happening with
innovators all around the country but particular in places like Silicon Valley. Right now, they're kind of separate worlds. The innovators
basically don't like government, they think government will screw things up and slow things down, and obviously there's some truth to that. At the same
time the people in our society do think there's a role for government to make sure the food their kids eat is safe, that the drugs people take are
going to be helpful, not unhelpful, to make sure like a drone doesn't land in their kids' playground and hurt somebody. So how do you make this
technology possible, all the benefits of this technology possible while at the same time creating a society where people feel kind of protected. And
there's a role for government, there's a role for innovators, what's missing and it's one of the themes of this book, is more of that bridge and
dialogue between these worlds.
QUEST: Go fire up your widget, or whatever it was, as we say goodbye. (Inaudible)
CASE: I have to restart it, just a minute.
QUEST: Anyone would think you knew what you were doing.
CASE: That's on, I turned it off out of respect for you so we can have that wonderful conversation. Now we're going to go back on and -- all
right. We're back on. So there you go.
QUEST: So whether it's to you or to those people there, all three of them, thank you very much indeed.
CASE: Thank you and congrats.
QUEST: This is the debate of the century and of our era.
CASE: And it's part of the reason I just finally after 20 years decided to write a book because it's important we get the right balance and have this
discussion.
QUEST: We'll see you next time, thank you.
CASE: Thank you.
[16:30:00] QUEST: So with ten weeks to go until he vote that can change Britain in the European Union. Just about everyone in the U.K. knows the
name of JT Wetherspoon's. It's a pub chain. And the founder told me why he's ready to wave goodbye to the European Union. It's QUEST MEANS
BUSINESS where anarchy appears to have broken out.
(COMMERCIAL BREAK)
RICHARD QUEST, CNN ANCHOR: Hello, I'm Richard Quest. There's a lot more QUEST means business in just a moment. When the chairman of Wetherspoon's
pubs tells me why he thinks staying in the E.U. is bad for British business. And Arianna Huffington joins me live talk about the sleep
revolution. Stay awake, because this is CNN. And on this network the news always comes first.
Ted Cruz says Republican voters have resoundingly rejected Donald Trump. The Texas Senator was back on the campaign trail, this time in New York,
after defeating the businessman in the Wisconsin presidential primary. His convincing victory makes it recently likely that no republican candidate to
win enough delegates to take the nomination outright. It would mean a contested republican convention this summer.
In the Democratic race Hillary Clinton says she will explore between her and Bernie Sanders in next week CNN debate in New York. Sanders close the
gap on the former Secretary of State by winning handily in Wisconsin. Mrs. Clinton told CNN, "There's a clear ideological gap between the two
candidates."
(BEGIN VIDEO CLIP)
HILLARY CLINTON, U.S. PRESIDENTIAL CANDIDATE: We have some serious differences. We're going to be exploring those. Whether it's how Dodd
Frank actually works if you're concerned about income inequality and holding the banks accountable, you have to know how it works and what you
have to do to make it work. And I have the best plan to add to that. When it comes to guns, we have a really serious difference. And I was appalled
that Senator Sanders said that he, you know, really didn't see any reason for the parents of children massacred at Sandy Hook in Connecticut to be
able to try to sue the gun makers. I just absolutely disagree.
(END VIDEO CLIP)
QUEST: Belgium's prime minister says he rejects the notion that the country is a failed state after last month's terror attacks in Brussels.
Belgium security services have been criticized for not stopping the bombings, which killed 32 people. Speaking exclusively to CNN, Charles
Michelle, says, "Belgium will learn from the attacks and promise to implement reforms."
Amnesty International says the number of executions has surged in the past 25 years. The human rights group says more than 1600 people were put to
death worldwide last year, Iran, Pakistan and Saudi Arabia accounted for most executions. The number of executions in China that's unknown.
[16:35:00] An inquiry into Britain's worst sports stadium disaster is now in the hands of a jury. Ninety-six Liverpool fans died in 1989 after being
crushed and suffocated in the stands. The jury is considering who may have been responsible and whether more could have been done.
UEFA says it's cooperating fully with the Swiss police following a raid at the headquarters earlier today. The European football body is under
investigation as the Panama Papers continue to cause questions. Swiss police say the research was part of a criminal mismanagement probe into a
television deal signed by UEFA's former General Secretary, Gianni Infantino. Infantino is now the new boss of FIFA and he denies any
wrongdoing. Kate Riley's at the CNN Center and joins me know. The response of Infantino to these new allegations.
KATE RILEY, CNN, WORLD SPORT: Well, Richard, as you can imagine he's come out as defiant and denying any wrongdoing into the matter. Let's just
remind you as to what Gianni Infantino did prior to these infamous FIFA presidential election, which he won some five weeks ago. He was in fact
the former director of legal services at UEFA. That is European football's governing body. And as such was allowed to be a handful -- one of a
handful of people to sign these TV contracts. Now, I must say that he has come out and said he's done nothing wrong and that he's more than prepared
to cooperate with the Swiss authorities.
And this is what he had to say in a statement released today. "Based on these documents it is clear that all contractual matters were conducted
properly by UEFA. Should I be required to contribute to bringing further clarification on the matter, I will of course gladly do so." So very much
stressing the fact that no wrongdoing has been done and that he's willing to take part in any investigation that might be ongoing.
QUEST: Kate Riley at the CNN center. Thank you.
As we move on this afternoon, the gap is closing between those who want Britain to stay in the E.U. and those who don't. A new poll shows that the
so-called Brexit vote is now on knife edge. The June referendum is just over two months away and that number between 39 and 38 that goes backwards
and forwards. Now, interestingly one of those who wants Britain to leave is a man by the name of Tim Martin. He is the founder of the Wetherspoon
chain, Britain's -- one of Britain's biggest pub chains called Wetherspoon's. He says he doesn't want to see the technocrats in Brussels
making laws for Britain. Now Wetherspoon's is something of an institution in Britian. The company is a cultural force in the U.K. It has more than
800 pubs across the country.
Now, tonight it's Wednesday, so let's have a look. If I was going to a Wetherspoon's, wing it Wednesday is the favorite on Wetherspoon's, it
dishes up buffalo wings. Look at this. Oh, good grief. It's 1,173 calories, ten spicy chicken wings, hot sauce, blue cheese dip all for just
six pounds 15, that's around $9 each. And you get a drink included. No wonder Wetherspoon's has become an institution in the United Kingdom. I
think maybe I'll go for the boneless chicken breast at only 259. Keeping myself trim. Well look, the chain's outspoken chairman says democracy is
what this is all about. And he tells me he sees precious little of democracy in Britain while it remains inside the E.U. Tim martin joined me
on the line from London. And he started by telling me those who came up with the European Union forgot, never mind buffalo wings, fried chicken or
curry, they forgot a component of togetherness.
(BEGIN VIDEOTAPE)
TIM MARTIN, FOUNDER AND CHAIRMAN, JD WETHERSPOON: They don't understand democracy, which is what the European Union is about. So just because a
relatively few people in the elite believe something doesn't mean it's true.
[16:40:00] And I think the majority of people in the country, and many, many business people feel we'd be better off in a democratic U.K., friends
with Europe but not having laws made by faceless technocrats in Brussels.
QUEST: We can go backwards and forwards on, you know, the economic arguments, how much would be won, how much would be lost, how many jobs on
either side. I don't think anybody knows the true answer. And there are strong statistics on both sides. What this comes down to though is a leap
into the unknown. If the leave campaign succeeds we don't know what an eventual treaty of departure would look like.
MARTIN: What you do know is that democracy goes hand in hand with freedom and prosperity. The more democracy in general, the higher the level of
prosperity. And what the E.U. is doing is it's slowly taking democracy away from Britain and from other countries. And that will reduce
prosperity as it's already done in Greece, Portugal and so on.
QUEST: The Norwegian example, of course Norway has to eat every one of the E.U. laws. It's known as the --
MARTIN: That's not true actually.
QUEST: Well, well, Oslo takes most of the laws and has to put them into its domestic legislation. But the Switzerland option, which is often given
the more preferential for the U.K., there's no guarantee that Germany and France, and the other countries, would ever agree to let Britain have a
Swiss option fearing that other countries would also leave if Britain got it.
MARTIN: Listen. Britain is the biggest consumer in the world of French champagne. We're the biggest consumer of Camembert. We're one of the
biggest buyers of German BMWs. Why would they want to fallout with us? We can get bubbly wine, champagne, which is just as good from Australia, New
Zealand, South Africa, et cetera. It's a joint interests of both parties to have a decent free trade agreement.
QUEST: They'll be those who say whatever -- again, whatever the short-term economic arguments, the longer term direction is Britain is better off in a
larger organization with a greater global voice at the time when China is growing, when the United States is still world's number one economy, and
surely the E.U. is -- the U.K.'s voice is stronger because it remains in the E.U..
MARTIN: The world owes its prosperity to democracy. Look at North America with its fantastic prosperity versus South America, which have far less
democracy over the last 100 or 200 years. Democracy is where it's at.
(END VIDEOTAPE)
QUEST: Democracy is where it's at. European stocks ended higher. Boosted by a rally in oil prices. The FTSE got a lift from a drug maker after the
collapse of that propose Pfizer-Allergan deal.
As we continue tonight, you want a good night's sleep? Arianna Huffington believes that's crucial if you're going to continue to do well in business.
She'll be with me after the break.
(COMMERCIAL BREAK)
[16:45:00] QUEST: Welcome back. Right now over 50 million school age children here in the United States are probably just getting home from a
long day of learning. Or they're just about to finish up on the West Coast. In an age of live streaming on Facebook that we talked about
earlier in the program, Facebook, Twitter and Snapshot, it's perhaps inevitable that social media would eventually make its way into the
classroom. The issue of course is how to use social media in the classroom to the advantage of education, as CNN's Clare Sebastian discovers
(BEGIN VIDEOTAPE).
CLARE SEBASTIAN, CNN MONEY, REPORTING (voice-over): Getting these tenth graders to speak up in class isn't a problem. The real test for their
teacher is making sure every voice is heard.
ADAM SCHOENBART, TEACHER, OSINING HIGH SCHOOL: Log on. Take out fences. Pull up the assignment calendar.
SEBASTIAN (voice-over): Today there's a slightly older member of the class joining their discussion on fences, a play by August Wilson set in the
1950s. The teaching method is set in 2016. It's called back-channeling.
(on camera) This is a complete new way of structuring the discussion. Only the people in the middle actually get books, so everyone is contributing.
You can see the tweets coming in in real-time.
SCHOENBART: The strength of back channeling is that it gives even the quietest student a voice. They don't have to raise their hand and speak
out loud to the class, they can share in writing and share with what they're comfortable with sharing, but it also gives every student an
audience. Which I think is even more powerful.
SEBASTIAN (voice-over): Tweeting in class comes with rules, they can only tweet about the lesson and they all have to use their class hash tag show-
and-tell, it's a play on their teacher's last name.
SHOENBART: So you can see what other people are saying, I have few parents that don't allow their students on social media and I think it is still my
job to try to teach them why it's valuable and how to be safe and responsible.
RENE TENESACA, 10TH GRADE STUDENT: I'm tweeting a question that I just thought of, like how come troy only sings a song when he is drinking?
SEBASTIAN (on camera): Do you think you contribute more on Twitter than you would just talking?
TENESACA:: I think I would contribute more because maybe multiple responses from like all around the world..
SHOENBART: I think education needs to shift to incorporate technology, to really change the way students are learning and make it better.
ERIC SCHWARTZ, 10TH GRADE STUDENT: Like he's more like a metaphor for...
SEBASTIAN (voice-over): For 15 year old Eric though it's completely natural.
SCHWARTZ: We spend like hours and hours on our phones, looking at Twitter, Instagram, all that stuff.
SEBASTIAN (voice-over): And if you are wondering whether anyone is doing any extracurricular tweeting.
SCHWARTZ: Occasionally, yes, I mean I'm sorry you can't help it.
SEBASTIAN: Still in a 45 minute class not one person raised their hand. And everyone was heard, it is certainly not like it was in my day. Clare
Sebastian, CNN Money, New York.
(END VIDEOTAPE)
QUEST: Arianna Huffington believes that we need to have not just more sleep but better sleep, why? In a moment.
(COMMERCIAL BREAK)
QUEST: Donald Trump's campaign sent a furious statement on Tuesday night calling Ted Cruz a Trojan horse of the establishment after Trump's defeat
in Wisconsin. Arianna Huffington said the Donald Trump may just need more sleep. She is the founder of the Huffington Post and the author of "The
Sleep Revolution." Delighted. We'll come to Donald Trump in just a moment, because you obviously have some views about the amount of sleep,
why did you decide to write this book?
[16:50:00] ARIANNA HUFFINGTON, FOUNDER, THE HUFFINGTON POST, AUTHOR, "THE SLEEP REVOLUTION": Well, it started with a personal story, when I
collapsed from sleep deprivation, hit my head on my desk on the way down and broke my cheek bone. And when I went from doctor to doctor the
diagnosis was basically sleep deprivation and burn out. And so I had to change my life and go from four to six hours to eight hours, which is what
I now get 95 percent of the time. And in the process I started the new sleep science, which, Richard, makes it absolutely convincing that sleep is
not incidental.
QUEST: We know it's not incidental but the changes required to get that sleep often seem to be mountains to climb.
HUFFINGTON: Well, absolutely, the changes are so mountainous because our culture does not appreciate sleep. Because our culture fails to equate
sleep with performance, that's the change we need to make. When you get adequate sleep you are better at your job, you are a better parent, you are
a better leader. And we now have scientific evidence that proves that.
QUEST: You say in your book that the best temperature for sleep is about 65 degrees.
HUFFINGTON: Yes.
QUEST: Fahrenheit, give or take. And in your wish list you say that you want the day to arrive when nap maps are as plentiful as yoga maps where
people are listing healthy sleep habits as an item on their resumes. That goes against -- I almost leap out the chair at this. Because that goes
against everything that we are taught. He's workaholic. He's a good worker. He's in morning, he's in the office early till late.
HUFFINGTON: And congratulating the people for working 24/7. But when you read the science chapter, what that means if you congratulating people for
coming to work drunk literally. So we've got change that because we now have a golden age of sleep science, I have 50 pages of scientific and notes
to convince the most stubborn skeptic that we need to change our habits.
QUEST: Do you think that Donald Trump is sleep deprived? And Hillary Clinton, she must also be sleep deprived.
HUFFINGTON: They both are. But Donald Trump displays every symptom of what the American Academy of Sleep Medicine describes as chronic sleep
deprivation symptoms. He cannot process simple information. He has paranoid tendencies. He repeats endless nonsensical pabulum. He has mood
swings. He's incredibly irritable. These are all classic symptoms of sleep deprivation, we've all experienced them.
QUEST: Margaret Thatcher then, she used to boast that she only needed four hours sleep a night.
HUFFINGTON: Right, and then she would get in one hour nap without fail every afternoon, and look towards the end of her life, how incredibly
irritable and difficult to deal with she became. And ultimately leadership is about the executive functions in the prefrontal cortex and this is what
is first degraded when you don't get enough sleep.
QUEST: So OK, I'm tired, I freely admit that most of working life I'm tired, I have a nap in my office at 3 o'clock in the afternoon or 2 o'clock
I need freshen up before I do the program, I feel guilty, Arianna.
HUFFINGTON: Oh, Richard, come on, you've got to be a leader in this movement to change how we look at sleep.
QUEST: How do we change it?
HUFFINGTON: Richard, you have so many millions of people who admire you. So if you just start speaking about it, we are going to end the stigma. We
are going to make nap rooms in offices as universal as conference rooms. And so if you are tired in the middle of the afternoon, instead of going to
have another doughnut or a fifth cup of coffee, or worse a Red Bull, you go and have a nap. Because we are human beings we are not machines. That
change started happening during the industrial revolution when we thought human beings had to have the same operational style as machines.
QUEST: Would you say I mean the Huffington Post has been one of your greatest achievements, but would you say your work for sleep and sleep
revolution sort of is that thing that you are not most proud of, but that you consider to be you cause.
HUFFINGTON: Well, I'm not proud yet because we have a long way to go, but the crusade that we launched this week to change cultural norms around
sleep is something that will transform our lives, will transform our decision making, our health, 75 percent of healthcare costs are now because
of stress.
QUEST: I am obsessed by this subject, I need to ask you though, about election because I mean a contested Republican convention, do you wish no
on the Democrats side Bernie Sanders would just get out of the way.
HUFFINGTON: No, this process has to unfold, and I think what is now clear though after the results in Wisconsin is that we are going to have a
contested Republican convention. Because the way things are looking now, Donald Trump will not have number of delegates he needs at the first
ballot.
[16:55:00] QUEST: And if that and suddenly this election becomes even more extraordinary that it's already been so far.
HUFFINGTON: I know but also I think to return to our topic, I think the greatest contribution that Donald Trump is going to make to American
political life is to show how dreadful it is for your campaign to be sleep deprived. And it gets cumulative. You know, last week he made his worst
mistakes, because what happens is that he is so exhausted now that he doesn't know what he is saying. On abortion he first wants to punish
women, he then doesn't want to change the laws, and that really cost him.
QUEST: Now I know why you always sparkle when I meet you, it's because you are getting a good night's sleep.
HUFFINGTON: I got my eight hours last night. And now I am enjoying being with you.
QUEST: Excellent. We will have a Profitable Moment after the break. It's QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment, the sleep revolution. At about 2 o'clock every afternoon I decide I am going to have 15 minutes with the FT
it's my way of just popping into my office and closing the door and having a quick snooze. I want to make sure I'm really on form when you and I get
together just an hour and a half later. But I still feel embarrassed by the fact I am having a little nap in the middle of the afternoon. And
that's one of the problems that Arianna Huffington talks about. The need to have sleep, the fact that it's OK to say I'm tired, the fact that in
this day and age there is no shame in saying I'm exhausted. I am going to take 40 winks.
The problem is the macho, keep going at any cost simply won't work. So be assured, ladies and gentlemen, when I see you at this time I am refreshed
and ready to do business.
[17:00:00] And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead I hope it's
profitable. Good night from New York. I'm off to bed.
END
