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Quest Means Business
Trump Foreign Policy Speech; Ted Cruz Announces Carly Fiorina as VP Choice if He Wins GOP Nomination;
Aired April 27, 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, CNNI: The market fell on Wall Street and the Dow is up some 53 points as the market heads to a close. Down in the morning, up in the
afternoon. iShares by BlackRock ring the closing bell and we have a -- oh, dear. A very wimpy gavel to end trading on Wednesday, it's the 27th of
April.
(BEGIN VIDEO CLIP)
QUEST: America first. Donald Trump talks foreign policy and is based on economic might. Dilma Rousseff tonight tells CNN she will fight to defend
Brazil's democracy. Our exclusive interview in this hour.
And Facebook results are out, any moment now. It's been a dreadful day for their tech rivals as you will have followed through the course of the past
24 hours. I'm Richard Quest, we have an hour together and I mean business.
(END VIDEO CLIP)
QUEST: Good evening. We have an extremely busy hour ahead of us. There's uptakes expected on political intrigue both in Brazil and here in the
United States. Ted Cruz is due to make a major announcement any moment now.
He is expected to name the former Hewlett-Packard chief executive Carly Fiorina as his potential vice president running mate, you'll hear that on
this program. It comes just hours after Donald Trump let out his foreign policy vision. He said America should be more unpredictable.
And also, in this hour, you're going to hear from the Brazilian President, Dilma Rousseff. She spoke exclusively to Cristiane Amanpour. It's her first
television interview since lawmakers began impeachment proceedings against her. You will hear them all on this program.
But we will begin with Donald Trump who says he'll put American interests first as part of a new, what he describes as unpredictable, foreign policy.
The Republican front-runner ditched his off the cuff style of prepared remarks. As he offered his view on the world from Washington on Wednesday.
And he made it clear he plans to use the power of the U.S. economy as an instrument of blunt force when it comes to America's relationships with the
rest of the world.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: America first will be the major and overriding theme of my administration.
We have the leverage. We have the power over China, economic power, and people don't understand it. And with that economic power, we can reign in
and we can get them to do what they have to do. We're also going to have to change our trade, immigration, and economic policies to make our economy
strong again. And to put Americans first again. Financial leverage and sanctions can be very, very persuasive. But we need to use them selectively
and with total determination. We can both benefit or we can both go our separate ways. If need be, that's what's going to have to happen.
(END VIDEO CLIP)
QUEST: My way or the highway. Trump's speech expanded on some of the controversial campaign promises he's made since he announced his candidacy.
Let's start, regarding China he said he would call a summit of Asian nations, he said China no longer respects America and called for tariffs
and other measures. Andrew Stevens is in Hong Kong.
(BEGIN VIDEO CLIP)
ANDREW STEVENS, CNN MONEY ASIA-PACIFIC EDITOR: Richard, Donald Trump didn't give any new details about how he plans to bring China to heel over trade
deals he says unfairly advantaged China or indeed China's currency manipulation. But he did say that fixing the relationship with the world's
second biggest economy is important and the best way to do that is for the U.S. to be strong.
He has in the past talked about slapping a 45% tariff on Chinese made goods going to the U.S. and he certainly didn't back away from that today. He
didn't say it explicitly but he did say that financial sanctions were very, very persuasive. Richard?
QUEST: From China, the view of the world as seen in foreign policy and economic terms by Donald Trump. It's the other side of the pacific and it's
to Mexico where Trump has called NAFTA a disaster and has proposed more tariffs, crack downs on money transfers. Our Latin-America editor, Rafael
Romo is in Mexico.
RAFAEL ROMO, CNN LATIN AMERICAN AFFAIRS EDITOR: Richard, there has been a lot of concern in Mexico about some of the policies that Donald Trump has
said he would implement if he wins the presidency including building a border wall, blocking money transfers from the United States to Mexico.
And of course deporting an estimated 11 million undocumented immigrants.
[16:05:02]
ROMO: But today we heard nothing specific mentioned about Mexico. About the only thing some Mexicans especially on the left would have in common with
Trump is their dissatisfaction with NAFTA, the North American Free Trade Agreement which they also call a disaster. They feel it has created unfair
competition between Mexican farms and powerful U.S. businesses. Richard?
QUEST: Mexico, China, the whole trans-Atlantic relationship. Trump said that NATO countries must pay more for defense. And he's threatened to
boycott for example Saudi Arabia if the country doesn't pay for ground troops and offer to pay its fair share for what he says is the country's
defense.
Nic Robertson picks up the story from London.
(END VIDEO CLIP)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Richard, broad brush strokes, worry in Europe, warming in the Middle East. Worry in Europe
because Trump is talking about doing a new deal with Putin. Is he going to forget about what's happened in Ukraine and Crimea. NATO looking at that
alliance that is going to cause concern in Europe.
In the Middle East, however, Saudi Arabia likely to look warmly upon what - - how Trump described Iran making gains within the region also talking about how the Obama administration have let down gulf allies. That is going
to warm -- be a warm message for the Saudis. Richard?
QUEST: Nic Robertson, our correspondents around the world, giving us the perspective on Trump's foreign policy as seen from the capitals where they
are based. It doesn't really matter which part of the globe you look at. In all capitals, they will be scratching their heads and wondering what does
it mean if this man becomes the U.S. President.
Fareed Zakaria of GPS, he's a man who's going to give us some guidelines and help on this. It was an extraordinary foreign policy address.
FAREED ZAKARIA, HOST, FAREED ZAKARIA GPS: It was extraordinary. I mean in part it reflected what Trump is, a nationalist, populist, you know he's
giving people what they want to hear.
(BEGIN VIDEO CLIP)
ZAKARIA: And in America there has always been this tradition of believing that the whole world is out to get you. That dealing with the world is
always a heartache and a headache and in that sense he reflected this kind of Jacksonian tradition.
QUEST: But I mean he says America first. One would be very surprised if a President didn't say America first.
(END VIDEO CLIP)
QUEST: So America first with shared values for allies is how he put it. So how does that differ from how, for example, previous recent presidents,
would have viewed a foreign policy.
ZAKARIA: Well, what he's trying to suggest is that other presidents have put international interest or global interests ahead of the United States.
Of course no President has ever said that and they would all claim to do doing what he is doing.
(BEGIN VIDEO CLIP)
ZAKARIA: The big difference in a sense is I think Trump believes that the United States is being screwed by the rest of the world to put it bluntly.
It's an odd position to have because as you know, looking at the world right now, the United States is growing 50% faster than Europe.
(END VIDEO CLIP)
ZAKARIA: It is growing four times faster than Japan. Brazil is almost imploding, China is slowing down. You know every country in the world is
having trouble except the United States which is doing rather weal. But he views it as you know a country that is being left behind by the Chinas and
Japans of the world.
QUEST: The one thing I notice, I mean if you take away the ISIS element which other programs will look at. But the one thing I noticed about --
he's very firm about using economic muscles. My way or the highway. We'll do a deal or we'll walk away, they'll learn they can't mess us about. He
uses the economy as a tool of foreign policy or would do.
ZAKARIA: He thinks he will. I think that the problem -
QUEST: Leveraged is the word he used.
ZAKARIA: That's right, and he thinks he's a great negotiator. And I think what he would discover is you know the Chinese have a lot of leverage too.
(BEGIN VIDEO CLIP)
ZAKARIA: The Saudis have a lot of leverage too. It's not as easy as you think to just go in and tell countries you are going to do this I'm going
to slap these tariffs on you. First of all, you can't do many of the tariffs he's talking about. Secondly, they could slap tariffs on as well.
You know, every President - people forget, Reagan came in saying he was going to be very tough on the Japanese. Clinton came in saying he would be
-- it never quite works out that way.
(END VIDEO CLIP)
QUEST: Let me be provocative if I may, sir, and suggest to you that you are looking at Trump's foreign policy through establishment eyes with a
traditional view. And he would say to you that's exactly the problem but I'm going to do it differently and they won't have seen it done like I'm
doing it, before.
ZAKARIA: Yes, I have the bias of my views being based on facts and analysis and some sense of the history. And I certainly plead guilty to that.
Look, there has always been an allure and this is something you know for your show this is more politically incorrect thing to say, that businessman
can run things better.
[16:10:00]
ZAKARIA: And in general businessmen run enterprises well and Trump is in many ways a good businessman. But government is very different and very
difficult because everybody thinks they're the boss, you don't have nearly the power you think you do. There isn't the clear bottom line, you're in a
series of endless negotiations with no end and that's why so many businessman have gone to Washington and come a cropper and I would predict
with absolute certainty that if Trump went to Washington he would discover that fact that you can run a small real estate company in New York by the
standards of the American economy does not mean you can run America.
QUEST; Fareed, good to see you sir, thank you very much indeed. Fareed Zakaria joining us.
It will be interesting, that's what we can say. A political crisis that has spilled over into the economy and the world of sport.
(BEGIN VIDEO CLIP)
QUEST: Now the Brazilian President has come out swinging at the politicians leading impeachment proceedings against her. Dilma Rousseff is speaking
exclusively to CNN in a moment.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
QUEST: We are waiting for Ted Cruz to make his announcement in Indiana. And while we wait for Senator Cruz you can see it on the screen there, we'll
keep a watch on that, let me remind you on how the markets have traded.
(BEGIN VIDEO CLIP)
QUEST: The U.S. markets have had a tepid response to the Fed's unsurprising decision not to change its interest rates. In fact you can see that if
you're looking at the timings. You can see by the way, the market was down in the morning and up in the afternoon. The Fed says economic activity
appears to have slowed. Chair Yellen said in March that the Central Bank would move cautiously in terms of moving rates. If the economy appears to
have slowed, that's a clear indication that any further rate rises certainly are going to be on the hold for the time being and the prospect
of any major - and any idea of two, three or four more rate rises by the year seems just about fanciful. Up 51, back over 18,000 for the Dow Jones.
[16:15:05]
QUEST: On to Europe, where the markets ended the day with gains. The FTSE was up despite reports showing the U.K. economy is slowing. Ted Cruz is
speaking in Indiana. Let's join him
(TED CRUZ SPEECH)
(CARLY FIORINA SPEECH)
END
