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Quest Means Business
Latest on the US Campaign Trail; Hundreds of Migrants Feared to Have Drowned; Checking the Markets; Mitsubishi Fuel Issue Examined; Brevick Wins Part of Lawsuit Against Norway; Obama in Saudi Arabia Amid Tensions; Brazilian Court Delays Decision On Lula Appointment; Three Officials Charged in Flint Water Crisis; Mitsubishi Shares Tumble Over Fuel Scandal; Google Accused of Breaching EU Antitrust Rules; Trump Leads Latest Polls in Connecticut; Trump's China Claims Face Scrutiny; Harriet Tubman is Coming to Front of $20 Bill; U.S. Treasury Secretary; New Royal Picture to Celebrate Queen's 90th
Aired April 20, 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]
PAULA NEWTON, HOST: Well, it's not the triple-digit gain of a few hours ago but a gain it is nonetheless. Three straight days of gains this week for
the Dow. It's Wednesday, the 20th of April.
(BEGIN VIDEO CLIP)
NEWTON: Tonight, New York's hometown heroes dominate the race for the White House yet Wall Street is not completely convinced. A deep vow of apology
from Mitsubishi and an even deeper drop in the share price, a new scandal hits the auto industry.
And a massive money milestone; the treasury has just confirmed a woman will finally be coming to that $20 bill.
(END VIDEO CLIP)
NEWTON: I'm Paula Newton, and this is "Quest Means Business."
Tonight. They have won New York and now they say the race is over. Hillary Clinton and Donald Trump's decisive victories have all but blocked their
rivals' path to the nomination. Not so fast.
(BEGIN VIDEO CLIP)
NEWTON: Bernie Sanders is vowing to stay in the race but only to capture, wait for it, 83% of the remaining delegates to win. Now, on the Republican
side, Trump's growing lead makes it mathematically impossible for Ted Cruz and John Kasich to actually gather enough delegates outright for a win. But
this is what they are hoping will happen, that they can reach that threshold at the convention, at a contested convention.
Now, Republican and Democratic voters in New York are divided on a range of issues, of course. There's one thing that they agree on. Wall Street is
damaging the economy. Democrats agreed by a 2-1 margin, Republicans were more split, 48% to 43%. The candidates though of course, are paying
attention to all of this. The front-runners in both parties have taken on businesses and banks, and that's how -- and that's how the candidates feel
about Wall Street. To see how Wall Street was feeling today though, I took a trip downtown.
The wins were convincing but the race goes on. That old cliche, if you can make it here, you know the rest, you can make it anywhere, right?
Not this year, not for the Democratic or Republican front-runners. Why? First, to the Republican race. It's true Donald Trump got the commanding
win he wanted here in New York, but we've come to Wall Street to see where the race goes next, and while Trump may - have a building here, he has a
testing relationship and there we get some insights into the challenges if he wants to become the Republican nominee.
Trump at times has shown naked contempt for Wall Street and bankers rules, bankers pay, banker's profits, he says works against outsiders like him. He
says in this race he's an outsider, too.
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Nobody should take delegates and claim victory unless they get those delegates with voters and
voting, and that's what's going to happen, and you watch, because the people aren't going to stand for it. It's a crooked system. It's a system
that's rigged, and we're going to go back to the old way. It's called you vote and you win.
NEWTON: At the stir cafe on wall street customers took in the New York primary results with cove and a bite of breakfast. Trump supporters worry
the party establishment will take the win away from him at the convention. Do you think the system it's stacked against him?
UNIDENTIFIED MALE: A little bit I do. Yes, I think it's been kind of this whole big boys' club for many years and Trump was a part of that on the
other end supporting it so I think he's seeing the opposite side now and I think it all does need to be flushed out a little bit and all taken back to
the American people.
TRUMP: But even some Trump supporters tell us they want the show to go on, even as Ted Cruz tries to convert delegates much to Trump's objections.
UNIDENTIFIED MALE: Something that's really never been discussed, and I -- I give him a lot of credit for raising the issue because i really do think
that it puts too much power in the hands of just the party regulars.
NEWTON: And yet do you think that Ted Cruz has a right to do what he's doing?
UNIDENTIFIED MALE: Yes.
NEWTON: Why?
UNIDENTIFIED MALE: Because it's legal.
NEWTON: The establishment is rattled by the Democratic race, too.
HILLARY CLINTON, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: There's no place like home.
NEWTON: The home state came through for Hillary Clinton, but her race against Senator Bernie Sanders goes on, too, a touchstone of Sanders
speeches, Secretary Clinton works for Wall Street interests.
UNIDENTIFIED FEMALE: Feel the bern.
NEWTON: Back at breakfast on Wall Street, Sanders supporters feel he still has a shot.
UNIDENTIFIED FEMALE: But I really do feel like Bernie has a large support system behind, especially the millennials. Like we're standing behind him
100%.
NEWTON: You want this race to go longer?
UNIDENTIFIED FEMALE: I do, I do. Just so we can get a fair shot. Yes.
NEWTON: Others.
UNIDENTIFIED MALE: Bernie go, home.
[16:05:02]
NEWTON: Say when this place speaks the country should listen. You think New York should have finished this thing.
UNIDENTIFIED MALE: Well, you know New York is the center of the universe, so I -- when it's done here, I think it's done everywhere.
NEWTON: That's one New Yorker's perspective, but the rest of the country isn't listening. George Washington, America's first President, was
inaugurated in New York right here on Wall Street. History notwithstanding, New York will not have the last word, this time.
(END VIDEO CLIP)
NEWTON: A lot of fun getting out there to talk to voters. Voters and so many of them told me yeah, I voted yesterday. Now the front-runners are
doing their best to build support for the general election. Charles Blow is a CNN political commentator, and he told me why Bernie Sanders and Ted Cruz
will continue campaigning even though they have little chance of winning.
(BEGIN VIDEO CLIP)
CHARLES BLOW, CNN POLITICAL COMMENTATOR: Mathematically it is over in a way, right, so particularly on the Democratic side, there's very little
chance that Sanders could pull out a victory and -- or for him to even win at the convention he would have to -- this anti-establishment candidate
would have to lean on establishment super delegates to overturn the will of the people which is not going to happen. Right, so in a way it's over, but
the mechanics of it, in fact, the idea that he will continue to run is not over, and that allows people to lodge their protest votes. And so that I
think is in a way a good thing but it's over mathematically.
NEWTON: It seems as if when you look at the process that it isn't that Democratic to use a word in both parties, right, because Bernie Sanders is
now complaining about those super delegates.
BLOW: Well, he's complaining about them on the one hand and then he's also depending on them possibly at the convention if he wants to still have a
chance to win, so, yes. Are there parts of both processes that are not democratic small "d"? Absolute I. The caucus system is not necessarily
democratic. It disenfranchises the very same people that democrats are worried about. Republicans disenfranchising, super delegates
disenfranchising on democratic in another way in the sense that you know they have the power to step in at the last minute and make -- and be king-
makers. That is actually not the most democratic thing to do.
The Republican side though is a little bit trickier in a sense that, you know, the rules are the rules. They have fewer caucuses than the Democrats,
they do not have super delegates, you know. The way delegates are --
NEWTON: Are chosen.
BLOW: Chosen -
NEWTON: Controversial?
BLOW: In some states, you know, the state -- a state party can decide how they want to deal with it. But they do it well ahead of time. All you have
to do is pay attention to those rules and you play by those rules. If -- if Trump is saying I am a deal-maker, I can hammer out tough deals, I can work
with people, well, this is the time to show it, right.
NEWTON: Make the deal.
BLOW: Make these deals - make these deals.
NEWTON: And the voters that we just heard from, they are kind of enjoying this race, even if they support both sides, Democratic and Republican, they
are enjoying the race. They want to hear from these other candidates, and interestingly they all told us whether they were supporting Hillary or
Donald Trump they say it will make them better candidates in the long run. We've heard this debate for months and months is this now true, or are we
now just tearing apart at these pillars?
BLOW: Well, I think there does get to be a tipping point. Up to a point I think it does make people stronger. After a certain point it has the
potential to tear them -- to tear the eventual nominee apart. Because it keeps them answering questions that they don't need to answer anymore, kind
of building an attack line that their opponents will use and actually having that be sustained through the summer. That's actually not what you
want.
So if - you know, if someone like Sanders can say he has to figure out what he's going to do. He is the voice of a lot of young people. You think of a
person who is in the twilight of their life, this is what they have talked about their entire lives. They now are in the race. Hundreds of thousands
of people are counting on him, looking to him as a moral inspiration, as a principled progressive, how do you unwind that? As a human being it must be
a tremendous amount of pressure to say I don't want to let these people down. And also as a politician trying to look forward and say I -- I have
to accept at some point it's not going to be me. How do I then turn this ship so that the people who are supporting me have at least a shot for me
to support the person who would -- who is most like me.
NEWTON: And in terms of who is still standing in this race and if we look to the national election in the fall. If it is Hillary Clinton and Donald
Trump, it may not be, but if it is, we're looking at a very polarized electorate here. I mean is it true that each has been pulled in -- into
much more extreme positions by this race?
[16:10:06]
BLOW: Right, but Hillary not quite as much, right, so that is a part of her problem with the most progressive parts of the Democratic side which is
that she refuses to get pulled so far to the left that she won't be able to win the center. And, you know, progressives say no, we need you all the way
over here on the left with Bernie. And she just seems to --
NEWTON: -- she's moved an awful lot.
BLOW: No, I think she has moved, but she has not moved all the way. And she - and I - you know if you pay very close attention to the way she talks
about issues, you understand that she's really thinking about that general election. Because the reason that she will not give up superpacs, she won't
even defend it. You know she's just like I have it and she's going to need it. If the Koch Brothers have $950 million sitting on the sidelines and
have not spend a dime of it in the primaries, that money comes off the bench.
(END VIDEO CLIP)
NEWTON: Interesting race, isn't it? Well, I spent a lot of time on Wall Street but not exactly paying attention to the markets which came back mid-
afternoon and, boy, that rally held up.
(BEGIN VIDEO CLIP)
NEWTON: The Dow held above the 18,000 mark, and it's a turnaround in oil prices that boosted those energy stocks. Now, a different story it was for
Coca-Cola. It finished lower after reporting a drop in sales.
(END VIDEO CLIP)
NEWTON: Paul La Monica is here with me. Good thing you were keeping track today, Paul, as I was out there on Wall Street. I mean I have to say that
both the extension of these gains and the oil play have really shocked me. Is it all short selling? A lot of people are saying that look, this is
pretty technical at this point in time.
PAUL LA MONICA, CNN MONEY CORRESPONDENT: I think there is some -
NEWTON: -- short coverings -
MONICA: Yes, I think there definitely is some concern that some of the bears who thought that all the volatility that we saw earlier this year
would continue. That was obviously a wrong bet, at least in the short term. So they do have to cover those positions.
(BEGIN VIDEO CLIP)
MONICA: But are you seeing some decent, if not spectacular earnings, and that might be enough to push stocks higher because I think people had
gotten overly bearish about the prospects for the U.S. economy in particular and even China.
(END VIDEO CLIP)
MONICA: I mean people were really fearing a major slump in China, and I think what we're probably getting there is just still a soft landing and
not a recession.
NEWTON: Now, with oil prices low and traffic up, those airlines should be in good shape to rebuild and yet controversy in the board room at United.
MONICA: Yes, United, the chairman is going to be stepping down before the company's next shareholder meeting.
(BEGIN VIDEO CLIP)
MONICA: And essentially it's a truce between United and two activist hedge funds that really wanted to shake things up.
(END VIDEO CLIP)
MONICA: It seems like the hedge funds like the new CEO Oscar Munoz who really the jury is still out on what he's been able to do because of all
the strange things that went on. He had a heart attack shortly after taking the job and needed a heart transplant and was out for several months. He's
back, he's eventually going to be the chairman but he's delaying his decision to do that from 2017 to 2018. So I think that that gives him more
time to prove to these activists that he is the right guy for the job and that he can turn the airline around after, you know, some merger
integration issues with Continental a few years ago.
NEWTON: Yes, which is going to be difficult no matter what, notwithstanding what's going on in the board room, and look what's going on there. Paul,
thanks so much, appreciate you coming in.
MONICA: Thank you.
NEWTON: Now another carmaker joins the club of emissions cheats.
(BEGIN VIDEO CLIP)
NEWTON: Mitsubishi Motors shares plummeted with the news. We'll have that story next.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[16:10:00]
NEWTON: Tonight Japan's Mitsubishi Motors is the latest carmaker to cheat on fuel tests. Hundreds of thousands of its cars have been rigged to give
fictional consumption rates. Now, shares dramatically tumbled 15% as a result. The scandal also extends to its bigger counterpart Nissan.
(BEGIN VIDEO CLIP)
NEWTON: Now earlier today the executives of Mitsubishi bowed in apology. One of the bending men, company President, Tetsuo Aikawa. He conceded the
illegal activity.
TETSUO AIKAWA, MITSUBISHI MOTORS PRESIDENT: (As translated) We have discovered that improper tests that were meant to show fuel consumption
better than they were were being used. It was also found that the fuel economy testing methods used were not in line with Japan regulations. We
offer our profound apologies to our customers and all stakeholders for this.
(END VIDEO CLIP)
NEWTON: Joining me now live is Lance Bradley, he is the U.K. Managing Director of Mitsubishi Motors. And I appreciate you coming on tonight to
kind of share this news with us and look at if it could go any further. Now while you're going to tell me that it does not affect European cars or cars
perhaps even in other parts of Asia, you're still investigating, right?
LANCE BRADLEY, U.K. MANAGING DIRECTOR, MITSUBISHI MOTORS: Yes, it's still being investigate the. The information that we have so far is that it
affects four models that are sold exclusively in the Japanese domestic market, two of which are Mitsubishis, two of which are supplied to Nissan.
We have no information that any vehicles in the U.K. or Europe are affected by this.
NEWTON: But you have no information they aren't affected by this. In terms of implications of this, they are fairly far-reaching. What do you say to
buyers of your cars who are now looking at this thing in the driveway, in the garage and saying, look, I am burning gas here. They lied to me. They
cheated on me in terms of actually getting a price for a car that I thought was going to be fuel efficient.
BRADLEY: Well, the information that we have is that at the moment that affects cars in Japan and I'm not in a position to comment on that.
NEWTON: No, no, sorry, sir, not at all I mean about perception. I know that you've already said that. I'm saying the perception is I bought this
car. You know what happened in the Volkswagen scandal. You had a scandal as far back as 2000 and with Mitsubishi what do you say to customers right now
looking at the vehicle in the driveway, and I know you've already told them they're not affected?
BRADLEY: Yes, Well, there's important differences between this and the Volkswagen scandal. The first thing is that Mitsubishi Motors have been
very open about this.
(BEGIN VIDEO CLIP)
BRADLEY: They have come out as soon as the issue became known, issued an apology and thrown open the doors to external investigators to have a
thorough look. So at the moment there isn't anything that I can say to U.K. or European customers or than the information that we have is that there's
no European vehicles affected. But there is a full investigation going on, and as soon as there's any more information, should there be any more
information then, of course, we'll share it
(END VIDEO CLIP)
NEWTON: You know, it's been a watershed in the last two decades of motor vehicles. Now while the technology in my estimation isn't new at all it is
new on two fronts and that is safety. And I think you always have to take your hat off to the companies because they've made cars much safer than
they were two or three decades ago. But on the fuel efficiency is it all a lie, are these standards that North American governments, that European and
Asian governments have given you, those Fuel Efficiency Standards, are they just too much? You cannot at the price that you're making these vehicles
make the fuel efficiency standards stick?
BRADLEY: Well, as I say, I'm not in position to comment on what happens in America or even Japan. But there's no question that fuel efficiency has
improved dramatically over the last few years. We have a plug-in hybrid vehicle on sale here in Europe that can achieve quite remarkable fuel
efficiency figures because it can run on pure electricity for up to 32.5 miles. So there's no doubt that there are genuine improvements being made
in fuel efficiency.
NEWTON: Yes, but, again, is it proving too much of a cost meaning you're selling the product at a certain level of fuel efficiency but actually in
reality it doesn't achieve that.
BRADLEY: Well, as I say, and I -- I'm sorry to keep repeating myself. The issue affects cars that are on sale in the Japanese markets.
NEWTON: For now, for now.
BRADLEY: And I can't comment on the details of that.
NEWTON: For now. You don't have the information though.
BRADLEY: Well, no, we don't have the information so it's not terribly helpful to speculate on what may or may not be happening at some point in
the future.
NEWTON: Yes, it is. It's terribly helpful for someone who has bought a vehicle from Mitsubishi, it's absolutely helpful. They want to know, as I
said again. Are these standards too difficult to meet? You as a company in the U.K., are you meeting those standards?
BRADLEY: The information that we have is that the vehicles that are sold in the U.K. have no issues with the issue that's been announced in Japan
today.
NEWTON: We certainly appreciate you coming on to talk to us, and it's a story we'll continue to follow. Thanks so much.
BRADLEY: You're very welcome.
NEWTON: Now, Volkswagen may be close to reaching a deal over its emissions scandal. Media reports suggest the carmakers on the verge of a settlement
with U.S. authorities which would mean it avoids a trial.
(BEGIN VIDEO CLIP)
[16:20:00]
NEWTON: The deadline for Volkswagen to reach a deal is tomorrow, Thursday. Volkswagen shares finished more than 6% higher and that helped boost the
DAX which enjoyed the best gains of the major European markets.
(END VIDEO CLIP)
Meantime, a top Russian oil boss says a deal to freeze output with the world's top exporters is unlikely to happen. It comes as Russia continues
to negotiate with OPEC after failed talks on the weekend.
(BEGIN VIDEO CLIP)
NEWTON: Crude oil is up more than -- to more than $45 helped by a fall in U.S. production. Now, in an exclusive interview CNN's Matthew Chance asked
the CEO of Lukoil, Russia's second largest oil company if he's concerned by the lack of a deal.
(BEGIN VIDEO CLIP)
VAGIT ALEKPEROV, CEO LUKOIL: (As translated) Nobody expected the breakthrough at the Doha meeting on stabilizing the production volume,
that's why it's not a catastrophe for Russia. Yes we are waiting for the oil price to grow but Russian oil companies have already adjusted to the
low price and the tax system allows us to earn investment money and money for our shareholders.
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Do you think there will ever be a deal between Russia and OPEC to freeze or to decrease
production?
ALEKPEROV: (As translated) I don't think so, despite that today work on so- called coordination of our actions is under way. There won't be a firm integration process between Russia and OPEC because even during the soviet
era the USSR wasn't a member of OPEC and it didn't coordinate its actions with OPEC.
CHANCE: Now, Russia has signaled that it is prepared to come out fighting and that it will actually and could actually increase production. Do you
think this country's capable of increasing its oil output?
ALEKPEROV: (As translated) Today Russia's oil reserves are pretty much mature oil fields. You need new oil fields to boost production in the new
territories, the arctic, of course, the far east, the deep waters of the Caspian Sea, so it's hard to talk today about getting these territories
producing soon because they require colossal spending.
CHANCE: What's your outlook for the global oil price? What are the geopolitical risks negative and positive that's going to affect that
ALEKPEROV: (As translated) I'm deeply convinced that we've identified the bottom of the oil price is $30 per barrel. Today we're seeing oil at $42
per barrel, even after Doha and that indicates that we're coming to a period of stability of prices in a trend of growing oil prices. I believe
at the end of this year or beginning of the next year the price will reach $50 per barrel.
(END VIDEO CLIP)
NEWTON: President Obama says he's grateful for the hospitality he's receiving tonight in Saudi Arabia and welcomes its important role in the
coalition against ISIS.
(BEGIN VIDEO CLIP)
NEWTON: Now, it comes as he begins a tour of the Gulf and Europe. CNN's Athena Jones has been following the story from Riyadh.
(END VIDEO CLIP)
NEWTON: I mean Athena, we're used to hearing those kinds of things in releases but a lot of things going on in that relationship geopolitically.
We'll put that aside for one moment. I know many people here in the United States are looking at the U.S. policy towards the victims of 9/11 and the
fact as to whether or not they can sue the Saudi government. I mean, it's something we've been talking about for several weeks here. Now Athena do
you get the sense that any of that was even brought up?
ATHENA JONES, CNN REPORTER: It's not clear from the readout we've gotten of the meeting which as you said was filled with a lot of the language that
we're used to hearing. They reaffirmed their historic partnership and their historic friendship and deep partnership but not clear if the 9/11 issue
was brought up.
(BEGIN VIDEO CLIP)
JONES: But I can tell that you that this is something that the White House is opposed to, the White House has been lobbying strenuously against this
bill. We've also heard from the speaker of the house, Paul Ryan who raised some questions about it, some doubts about it and from senate majority
leader, Mitch McConnell. So it's not a bill that even if it passes, it's not a bill that the President is in a position - says he would sign.
(END VIDEO CLIP)
JONES: So that tells you how important it is to -- to the White House that this not go forward. They are concerned that passing a bill like this,
passing a legislation like this would put Americans at legal risk overseas because you have other countries that could decide they want to sue, and
you get rid -- you're dealing with the issue of sovereign immunity, it creates a lot of conflicts and so that is the concern about that bill.
NEWTON: In terms of trying to get to some of those geopolitical issues, Obama is making this trip. Do you think he's going to illicit more of what
he wants from Saudi Arabia in terms of cooperating in the region and actually getting to some kind of peace settlement in Syria and then after
that and getting to fight ISIS.
JONES: Well, that is certainly the hope. I mean, those are the big issues on the table here.
(BEGIN VIDEO CLIP)
JONES: Regional stability and the fight against groups like ISIS and also don't forget Al Qaeda and the various Al Qaeda affiliates. But when you
talk about regional stability and terror groups you also have to talk about Iran in the context of Saudi Arabia.
Iran is, of course, their chief ally, chief rival I should say in the region and Saudi Arabia has been very, very concerned about Iran's growing
influence across the region. They are concerned that the nuclear deal, for instance, that the U.S. and the other p5+1 struck with Iran that that shows
that maybe the U.S. is tilting towards more of a relationship with Iran and maybe away from Saudi Arabia.
(END VIDEO CLIP)
[16:25:04]
JONES: They are concerned of course about Iran back backing President Assad in Syria, backing the Houthi rebels in the civil war in Yemen. And also
they're concerned about Iranian influence in Iraq where you have a Shiite- controlled government. And so those -- all of those issues were discussed, along with the Arab-Israeli and Palestinian conflict in Lebanon as well. So
a lot of regional issues to discuss, but bottom line, all of these countries, not just Saudi Arabia, but the other Gulf countries that the
President will be meeting with tomorrow, all of them want to defeat ISIS.
The issue when it comes to Saudi Arabia is that sometimes it seems as though they are more concerned with Iran than they are with battling ISIS,
and that is where the President and the White House want to see the focus.
NEWTON: Yes. It's an old problem and see if there's any new solutions. Our Athena Jones, there in Riyadh, appreciate it.
Now, Iran Central Bank may be forced to pay nearly $2 billion to the families of terror victims.
The U.S. Supreme Court ruled congress acted within its powers when it passed legislation in 2012 granting victims the explicit right to collect
that money.
(BEGIN VIDEO CLIP)
NEWTON: Now, it's a victory for more than 1,000 victims and family members who sued to hold Iran liable for sponsoring terrorist attacks including the
1983 marine barracks bombing in Beirut.
(END VIDEO CLIP)
CNN legal analyst Paul Callan joins me now. I mean Paul, we should say that's a lot of money that could actually be in the hands of these victims
because that money, a lot of it rests in U.S. banks right now. Those assets have already been frozen, if you do very simple math you're talking perhaps
almost $2 million per victim's family. Is that significant? Or is this - I mean this is Supreme Court it can go no further, right?
PAUL CALLAN, CNN LEGAL ANALYST: It can go no further. I think can you say with certainty that the victims will finally collect these funds. I mean
you know that Beirut bombing goes back to what 1986 I think it was --
NEWTON: -- '83.
CALLAN: And there are many other victims of terrorist acts that are part of this lawsuit. They will be able to finally collect as a result of this very
unusual ruling by the U.S. Supreme Court.
NEWTON: Now, we don't want to get too in weeds of this kind of a court ruling but it's important, it's important because of what we just discussed
in Saudi Arabia and we'll get to that in a minute. But why is it such an interesting ruling as far as you're concerned?
CALLAN: Well, there are two parts to a lawsuit. One is proving that you have a case, and the other person wronged you. Well, Iran made that very
easy. They didn't show up. They defaulted, OK? The case you were just talking about involving Saudi Arabia and the 9/11, Saudi Arabia came into
court and actively litigated saying we, the government, of Saudi Arabia had nothing to do with 9/11. Iran different, they said we don't recognize
American courts, we're not even going to show up so a default judgment was granted in favor of the victims.
Now, the second hardest part about a lawsuit, how do you collect the money. There's the rub. This fund of over $2 billion consisted of frozen assets of
Iranian banks that had been illegally or illicitly brought into the United States and just frozen by the U.S. government. The congress then passed a
law saying victims in the -- in this lawsuit can have that money. Now, what's wrong with that? Well what's wrong with that is congress telling the
courts how a certain fund is going to be used, and the courts don't like that because there may have been other people who sued that bank who for
other reasons, maybe they have a judgment --
NEWTON: Who are entitled to some funds.
CALLAN: -- and all of a sudden congress steps in and says no, no, no. That money is going to these victims and they are doing it after the lawsuit has
been decided. So it's like going back in time and picking out a special set of victims and saying you're going to get the money but you other folks,
you're not going to get the money. And that disturbing the concept of separation of powers between the judiciary and the congress in the United
States.
NEWTON: Paul, we should say quickly here, let's point out, you and I just discussed it. President Obama supported this case, he's not supporting the
9/11 victims in Saudi Arabia. I know you and I do not have the a crystal ball to understand what's going on in the White House, but if you had to
take a guess, why do you think the two cases are different?
CALLAN: Well, I think they are different in reality although this stuff is the stuff lawyers love to argue about and glazes ordinary people's eyes
over.
NEWTON: And we're not going to do it here I assure you Paul. But --
CALLAN: Here's the deal. President Obama runs the foreign policy of the United States and the congress says - and the constitution says he has the
right to do so.
In the case that we just talked about the courts were getting a little upset that congress was trying to go into their jurisdiction, well, in the
case involving Saudi Arabia, now President Obama, unlike this case is saying, hey, Saudi Arabia is a good ally. We don't agree that they should
be held responsible. We've never designated them as a terrorist state and did designate Iran as a terrorist state so for that reason he was able to
support victims here, but he says it's not in the interest of the United States to go after its ally Saudi Arabia.
NEWTON: And even if that bill has had a chance he says he will likely veto it.
[16:30:06] Paul, thanks so much. An important thing because the victims and their families, cold hard cash no, comfort for what happened to them,
but they do feel it's a measure of justice.
CALLAN: It's a great day for them, it is.
NEWTON: Thanks, Paul, appreciate it.
Small icons, massive fine, European commission is accusing Google of forcing customers to use its own apps and the company may be forced to pay
up to $7 billion.
(COMMERCIAL BREAK)
NEWTON: Hello. I'm Paula Newton. Coming up in the next half hour of QUEST MEANS BUSINESS, Europe's competition commissioner tells me why
Brussels minister is taking legal action against android. And I'll speak to the woman who has campaigned tirelessly list to get women on the face of
the $20 bill. The U.S. treasury announced new faces for its currency. Before that though, these are the top news headlines we're following.
As many as 500 migrants are feared dead after a shipwreck in the Mediterranean. The U.N. refugee agency says an overcrowded boat capsized
and sank last week somewhere between Libya and Italy. Now, 41 survivors were rescued and taken to Greece. A spokesperson for THE UNHCH says it
underscores the need for action in Europe's migrant crisis.
(BEGIN VIDEO CLIP)
WILLIAM SPINDLER, COMMUNICATIONS OFFICER, UNHCR: This is one of the worst tragedies in the Mediterranean in the last 12 months. It brings home the
need to create safe legal alternatives for refugees to find protection in Europe. And it's again a reminder of the length to which desperate people
will go in order to find protection and a better life in Europe.
(END VIDEO CLIP)
NEWTON: a Norwegian terrorist Anders Brevick has won part of his lawsuit against the government. A court ruled Norway violated human rights laws by
keeping Brevick in isolation for an extended periods of time. Brevick serving a maximum sentence of 21 years for killing 77 people.
U.S. President Obama is in Saudi Arabia for a gulf summit to address terrorism and regional conflicts. The president and Saudi King Salman sat
down ahead of the summit which comes amid increases tensions between the two countries. The U.S. Congress is considering a law that would allow
families of the victims of 9/11 to sue the Saudi government.
Brazil's Supreme Court has decided to delay making a decision on whether former President Luiz Inacio Lula da Silva can become the current
president's chief of staff. Lula would get new protections against claims of corruption if he's allowed to take up that role.
Three public workers have been charged in connection with the water crisis in the U.S. city of Flint, Michigan. They face charges ranging from
tampering to evidence and misleading officials. The water supply to the city's 100,000 residents was contaminated with lead, E. coli and corrosive
material. Some flint residents say they ultimately want the governor of Michigan to be held accountable.
Shares of Mitsubishi tumbled 15 percent after admitting rigging fuel tests on hundreds of thousands of cars. The president bowed an apology saying
the company tried to make fuel economy rates look better than they were. The vehicles were sold in Japan. Mitsubishi says it's now investigating
whether cars in other markets were also manipulated.
[16:35:00] Tonight's European Competition Commissioner tells me she's sticking up for consumers and app developers as she takes on Google. The
company is accused of breaching antitrust rules by restricting the way device manufacturers used its android operating system. Now look at home
screen and you see a suite of Google apps. Those apps can't be hidden and users can't delete them. They could though use others. The European
commission says that hurts consumers and holds back innovation by other developers. Google's response, "We take these concerns seriously but we
also believe that our business model keeps manufacturers' costs low and their flexibility high, while giving consumers unprecedented control."
Google is facing the possibility of a $7 billion fine. Speaking to me a short time ago the EU competition commissioner said "Getting the money is
less important than getting Google to change its ways."
(BEGIN VIDEOTAPE)
MARGRETHE VESTAGER, EU COMPETITION COMMISSIONER: Well, the purpose is very simple, it is to ensure that we as consumers can enjoy more choice and for
those who innovate, to develop new apps, that they can actually present them to us.
NEWTON: In terms of what you hope to gain from the case though, is it principally to get fines from Google, or is it so that you derive a much
more competitive environment or both?
VESTAGER: Well, what we want is an open competitive market because that promotes innovation and that promotes choice for consumers and that moves
the market forward, and I think that's very good. The fine is a secondary thing, but obviously if you've done something wrong, well, then there is a
risk that a fine is awaiting you.
NEWTON: You know, an interesting question many may have is what would an android phone look like if the EU won its case and Google was forced to
change how it puts those apps on those knowns?
VESTAGER: Well, it would depend very much on the one who makes the phone for us, because then they would have a much freer choice and maybe they
would use android or a new version of android with the play store, but maybe install a new search machine, a new browser that would be even better
or different from what we know now. And in that we would have more choice, because the manufacturer would have the freedom to decide what phone to
present to us in the box the first time we take it out.
NEWTON: In terms of a much larger goal here, I mean, you tend to have to launch these cases as happened with Microsoft, in terms of getting
companies to change their behavior. What is your vision going forward? I mean, does it always take this kind of a stick to really have these
companies create the environment where we are having a competitive level playing field.
VESTAGER: Well, I think it is important because one of the reasons why Google is successful and big and has grown is, of course, that they have
been and in some respects are very innovative company, and that is for others to enjoy the same. That they can be the next big one, the next one
to present the new thing that we would all like to use and to have, and I think that that is important because the digital industry is rewriting a
lot of things, among one thing how we communicate and how we socialize and how the market works and, therefore, of course, it is very important that
it's open, not that you cannot be successful and grow and be dominant but that it's actually open for business.
NEWTON: And finally one basically consideration here that many people have is, whenever it's an EU case, is how long it will take for this case to
come to fruition and then whether or not you actually win or what goes on for it to actually change the behavior of these tech companies.
VESTAGER: Well, I think we have been relatively quick in the investigation. We started it a year ago. Here we are with the statement
of objection. Google will have 12 weeks to answer because obviously they have the full right to defend themselves. And then we should be thorough
in analyzing that because we cannot put speed before quality, but of course, we make it a high priority because these are fast-moving markets.
(END VIDEOTAPE)
[16:40:00] NEWTON: Now Google's business model also has the advertising community talking tonight as it claims marketers get a better return on its
YouTube than old-fashioned television. Now, CNN Senior Media Correspondent, Brian Stelter, spoke to YouTube CEO, he said the company is
focused on emerging markets.
(BEGIN VIDEOTAPE)
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: I think about YouTube being an American product, but, of course, it's accessible all around the world.
What emerging markets are most important for you?
SUSAN WOJCICKI, CEO YOUTUBE: So we're interested in having YouTube in the whole world. And we have over a billion users right now who come to
YouTube every month, but we see that there are billions of users in the emerging markets. And we've been really working hard to try to figure out
how can we offer a really compelling service for them. And so the biggest issue that they usually have is just the cost of the data. A lot of times
it's more expensive in those markets and the infrastructure isn't as good. So we need to figure out how do we make video work for them.
But we think it's important because we have a huge library of information. This huge library of how to do anything and this huge bribery of
entertainment, and so the fact that which can make it available to billions of people more in the emerging markets is really, really -- can have a
really big impact. We actually have this great story about this young man in Kenya. He wanted to be a javelin thrower, and no one in Kenya was a
javelin thrower. And so he didn't have any place to turn or anyone who could teach him, and most Kenyans are runners. But he wanted to javelin,
so he went to YouTube. He started watching these videos. He learned how to throw javelin from the videos, and today he's won of the top javelin
throwers. And that's all a result of having YouTube videos available to him.
And so you look at that, and you look at like what are all the great scientists or athletes or musicians or dancers out there in the world, and
if you gave them access to all this information, what could they do with that? And so we take that really seriously and we want to make sure that
they have that information. We talk about that as a freedom of information. We want to make sure that they have access to that
information.
STELTER: It's interesting that you talk about YouTube not as an entertainment medium but as a public service of some sort.
WOJCICKI: So we do think about YouTube and the impact that it has on society. And we spent a lot of time and take that very seriously. No
matter who you are or what your background is, your racial ethnicity, you know, medical condition, you can find other people who are like you on
YouTube and you can be part of that community and you can belong.
(END VIDEOTAPE)
NEWTON: Now China is Donald Trump's favorite economic target on the campaign trail. After one of his biggest wins yet, we'll take a closer
look whether he's right.
(COMMERCIAL BREAK)
NEWTON: A new poll shows Donald Trump with a big lead in the state of Connecticut, one of many states that's holding a primary next week. Now
he's doing especially well with voters who are concerned about the economy, and sometimes there are big differences between what Trump says on the
campaign trail and economic reality. CNN Money, Andrew Stevens, explains.
(BEGIN VIDEOTAPE)
[16:45:02] ANDREW STEVENS, CNN MONEY ASIA PACIFIC EDITOR, (voice-over): Republican presidential front-runner Donald Trump blames one country
repeatedly for the U.S.' economic woes.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: China. China, China.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
TRUMP: Look what's happening with China.
(END VIDEO CLIP)
STEVENS: But is that the case? Let's do a reality check and find out. We'll start with Trump's issue with China's currency, the yuan or renminbi.
(BEGIN VIDEO CLIP)
TRUMP: They are single greatest currency manipulator that's ever been on this planet.
(END VIDEO CLIP)
STEVENS: He's repeatedly accused China of weakening the yuan to benefit its own exporters. Economists say that argument might of held up seven or
eight years ago but not anymore. The yuan has actually been strengthening sharply over the last 10 years, up 20 percent against the U.S. dollar that
makes U.S. exports to China much cheaper. It's strengthened so much that the international monetary fund, the IMF, added the yuan to its basket of
reserve currencies. That gives China an international stamp of approval and credibility. Now Beijing is intervening, but objective is to keep its
currency strong, so it gives no advantage to its own exporters. When it comes to trade with China, Trump says the U.S. is getting a raw deal.
(BEGIN VIDEO CLIP)
TRUMP: You lose $500 billion a year with China and it's a total imbalance. We don't make good deals anymore. We don't win anymore.
(END VIDEO CLIP)
STEVENS: The U.S. trade deficit with China is actually $365 billion. That means the U.S. is buying more Chinese goods than China is buying U.S.
goods. The deficit is at a record high, but the balance has been like that for the last 30 years. Now, staying with trade. Trump says the only way
to fight this imbalance is by slapping a 45 percent tax on Chinese goods exported to the U.S.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You're open to a tariff.
TRUMP: I'm totally open to a tariff.
(END VIDEO CLIP)
STEVENS: This threat is aimed at Chinese companies but would hurt American consumers. Economies say a higher tax means a bigger price tag for goods
that come from China. What's more, economists are unanimous in saying this could lead to retaliation by China which would trigger a global trade war,
and that wouldn't be in the interest of anyone. Andrew Stevens, CNN, Hong Kong.
(END VIDEOTAPE)
NEWTON: Now honoring an abolitionist who freed slaves. America's money is changing. A woman will grace the front of the new $20 bill. Reaction from
the head of the women on 20s campaign. That's up next.
(COMMERCIAL BREAK)
NEWTON: America's very first treasury secretary will keep his disputed role on the face of the $10 bill. Alexander Hamilton may have helped buy
the currency of celebrity. Hamilton, the musical, a smash hit on Broadway, if you don't believe me, just try and get tickets, won the Pulitzer Prize
for drama this week.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (singing): I'm passionately smashing every expectation and every reaction and the creation. I'm laughing in the face of
casualties and sorrow and the first time I'm thinking past tomorrow.
(END VIDEO CLIP)
[16:50:11] NEWTON: Did it help, that celebrated version of Hamilton and his life? Well, now it's official. Hamilton won't be budging off the $10.
Instead, Andrew Jackson will be bumped to the back of the $20 and Harriet Tubman is now getting front billing. Now, a short time ago the U.S.
Treasury Secretary, Jack Lew, held a conference call announcing those very changes.
(BEGIN VIDEO CLIP)
JACK LEW, U.S. TREASURY SECRETARY: The decision to put Harriet Tubman on the new 20 was driven by thousands of responses we've received from
Americans, young and old. I've been particularly struck by the many comments and reactions from children for whom Harriet Tubman is not a
historical figure, but a role model for leadership and participation in our democracy. Her incredible story of courage and commitment to equality
embodies the deal of democracy that our nation celebrates, and we'll continue to value her legacy by honoring her on our currency.
(END VIDEO CLIP)
NEWTON: Now, Harriet Tubman was an African-American abolitionist in the late 19th century. She ferried hundreds of slaves to freedom in the United
States. U.S. President Barack Obama paid tribute to her legacy in 2013 and acknowledged she's not always received the credit she deserved. He quoted
the civil rights leader Frederick Douglass in a letter to Tubman about her work with slaves, "Heartfelt, God bless you has been your only reward. The
midnight sky and the silent stars have been the witnesses of your devotion to freedom." Susan Ades Stone, the Executive Director of Women on 20s
campaign is here with me now. I mean, how do you feel today? It's interesting that Hamilton still gets to keep his place on the money and yet
a victory here for supporters of Miss Tubman?
SUSAN ADES STONE, EXECUTIVE DIRECTOR, WOMEN ON 20S: That came as a bit of a surprise to me. I listened in on the press call, too, and that was the
first I heard of it. You know, I think the fact that Harriet Tubman is going to send him to the back is appropriate, you know. Look, I would like
to see him dismissed all together, but I think, that you know, this is a great moment.
NEWTON: Now, for those who don't have insight into that. Why would you like to see him thrown off our $10 bill?
STONE: Oh, no.
NEWTON: I'm sorry, I apologize, wrong one, thrown off the 20, thrown off.
STONE: Well, Andrew Jackson's legacy for the trail of tears through the Indian removal act he moved thousands of Native Americans off their land
and marched them westward in the middle of the winter, thousands died. He also was a slave trader and he was an opponent of paper money. He opposed
the central bank.
NEWTON: We were trying to figure out as far as you think of a historical record, that's true. He didn't even like paper money.
STONE: So no one would be happier to be removed than him.
NEWTON: In terms of your campaign, does it take anything away from it really in terms of the way this was done today?
STONE: No. The only thing that we really want to emphasize is the importance of accelerating the production and issuance of this bill. We
hope the Treasury Secretary said that he has had a commitment from the Fed -- the Fed Reserve Chair, Janet Yellen, to expedite this process, to get
this bill in circulation as soon as possible, and they are working on the design and the production elements concurrently with the 10 and the 5, so
that is for me great news.
NEWTON: You know, when I look at this money here, we have Jackson on the 20. Of course, Hamilton on the 10. Lincoln, of course, on the 5 and we
could go on and on with the denominations, but why is this important in terms of what it does to give people the perspective of American history?
Why is it important that Miss Tubman about now be on that $20 bill?
STONE: Well, women have not been on the face of paper currency since the late 19th century, so we need women to be shown alongside of the great men
who have influenced our history, our culture. And we are very different country than we were when these portraits were selected in 1929. And women
need to be honored, you know, in a way that we see every day coming, you know, out of an ATM machine, you know, changing hands, you know, in
commerce. The 20 is circulated internationally and it says something about who we are and what we value, and we need to start valuing women more
equally.
NEWTON: And quickly, what's next for your campaign? Are we tossing all the men aside?
STONE: Well, you know, it's just one woman on the face of one bill out of seven, so you know, what they are doing with the backs of the bills is
nice. We would have liked to have shared the 10 with Alexander Hamilton.
[16:55:09] NEWTON: Sure.
STONE: That's not in the cards now, but, you know, I think that it's a good start and I think lots of people now know about these people. They
are asking questions. They are learning about them. That's huge, and I think it will only become a greater lesson for the American people, and I
also want to say that the American people made this happen.
NEWTON: They did. Social media and everywhere, they definitely spoke out on this issue. Thanks so much for coming in. Appreciate it.
STONE: You're welcome.
NEWTON: Now Queen Elizabeth II is on every single bank note in the United Kingdom. Now Britain's longest reigning monarch is looking for someone
with an eye to the future as the royals look to ramp up their social media strategy.
(COMMERCIAL BREAK)
NEWTON: A new picture of the British Royal Family has predictably gone viral on social media to mark the Queen's 90th birthday. Now it's a
special display of four generations of the royal family. The Queen, Prince Charles, Prince William and of course Prince George who stole the show.
Now the monarchy is looking though for someone who can tweet for her majesty on a regular basis. This is the application if you're interested.
The salary is $70,000. And the Queen, of course, is no social media slouch. Here she is in 2014 making her very first London tweet. It was
retweeted more than 40,000 times. You think she's done any tweets since then? One guess. Anyway, that's QUEST MEANS BUSINESS. I'm Paula Newton
in New York, and I'll see you back here again tomorrow.
END
