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Quest Means Business
U.S. Stocks Plunge on Rate Rise Fears; Mark Cuban Warns Stocks Would Sink Under Trump; European Markets Mostly Lower; Cameron Says ISIS Might Be Happy with Brexit; Apple CEO Heads for India; Inside China's Tech Revolution; Investors Bullish on Amazon's Echo; Delta Wants to Hike Fares; Clinton Looks to Break Sanders' Win Streak; Christie Whitman Says She'll vote for Clinton Over Trump; Qatar Airways Increases Stake in IAG; Russia's VTB Bank Reports Q1 Profit; HP Reveals Commercial 3-D Printers; Largest Cruise Ship Docks in Southampton; UK David Cameron Joins Tinder to Target Youth Vote. Aired 4-5p ET
Aired May 17, 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, CNN ANCHOR: Some love it. Some hate it. This is the volatility that the market has been known for the last several months.
U.S. indices are down sharply as trading comes to a close on Wall Street. Look at the red. It's been like that most of the day and gathering speed.
It is Tuesday, May 17th. Mark Cuban warns there's been red ahead for stocks if Donald Trump takes the White House. We'll get the traders' view.
World's largest airline says rising oil prices means it's time to hike fares. And swipe right to stay in the EU. David Cameron joins Tinder.
I'm Paula Newton and this is QUEST MEANS BUSINESS.
Stocks have plunged on Wall Street as the market prepares for a rate rise that could come much sooner than expected. The DOW, NASDAQ and S&P 500
each closed off about one percent. As you can see there, the DOW slightly off its lows of the day but still looking quite poorly. It's the third
session in a row that we have seen triple digit swings for the DOW and it comes after a double whammy of news suggesting the Federal Reserve may be
gearing up to raise interest rates.
First strong inflation data here in the United States and then comments from the head of the Atlanta Fed saying next month's meeting should be
considered in his words live. Paul La Monica joins me live. You know Paul, this market has been searching for some other paradigm. Just a few
days ago we heard people saying, "Eh, you know, the Fed. We don't have to worry about the Fed anymore. We've already put in a rate hike towards the
end of the year and now today this." I mean, is there a new paradigm emerging or is it just back to the same old thing? Fed's rise rates.
Stocks go down.
PAUL R. LA MONICA, CNN MONEY CORRESPONDENT: Yes. I think it's the same old thing, Paula. We still have the absence of a lot of major economic or
earnings news this week. So I think investors may be grasps for straws trying to analyze every single word of the Fed members. A Fed meeting, I
think always live no matter what they say, because it's always data dependent some point. My best guess is end of the year. And maybe the new
president has, you know, an unwelcomed present of a Fed rate hike right around November or December after the election.
NEWMAN: Yes. In terms of when you look at the fundamentals of this market, though, if we go through the earnings season here, was there a lot
to worry investors in there?
LA MONICA: I think that, you know, those who want to worry can find things to worry about. But, you know, we did have, you know, some concerning
reports from a lot of retailers, which does potentially raise questions about the health of the U.S. consumer but outside of that you did have some
better results from some big tech companies, so it is a mixed bag. I think the absence of any definitive trend is what is most concerning. It is
still very difficult to figure out if this economy is going to pick up steam or not. It doesn't appear as if we're going to have an answer to
that until later in the year.
NEWMAN: Yes, and the big spoiler could also be oil. We'll talk about it a little bit later. Oil up again today. If we really see huge volatility in
that market on the upside, do you think there's more collateral damage to the market?
LA MONICA: I think so because you will have more people worried about what that does to things like auto sales and retail sales more broadly. The
American consumer wasn't really out there spending like gang busters when gas prices were really cheap. It is hard to imagine how they do that if
prices will start to rise more steadily.
NEWMAN: OK, Paul. We'll continue to check in with you. It's going to be a wild ride, we think, until November. We are going to actually be, Paul,
going into a lot of the election scenarios. If you had to talk about it now, how much more is that election sentiment creeping into market
sentiment, where they're looking at Trump and likely Hillary coming head to head and saying, lock, there are no dramatic moves here until we know the
president we're dealing with?
LA MONICA: I think to a certain extent that is the case. I still believe that the market is expecting that Hillary Clinton will prevail. Whether or
not that happens, obviously, we have six months before the general election. But I think, you know, you can't also ignore what's going to
happen with the big congressional races, as well. I think the power of the president, while clearly important, is somewhat muted depending on what
happens with the congressional landscape, as well. I think investors for the most part probably expecting more gridlock.
NEWMAN: So much to look forward, Paul.
LA MONICA: Exactly.
NEWMAN: Thanks so much. Appreciate it.
[16:05:00] Now, this volatility comes as two U.S. states go to the polls. Now, a billionaire businessman made famous by reality TV -- sounds familiar
doesn't it -- is warning American voters don't elect a billionaire businessman made famously reality TV. The internet entrepreneur, Mark
Cuban, says "If Donald Trump becomes president the stock market could tank." Cuban is a host on the show "Shark Tank." and the owner of the
Dallas Mavericks of the NBA. He told CNN, "Trump's unpredictability and lack of detailed policies would cause chaos."
(BEGIN VIDEO CLIP)
MARK CUBAN, OWNER DALLAS MAVERICKS: That uncertainty, you know, potentially as the president of the United States, that's the last thing
Wall Street wants to hear. And I can say with 100 percent certainty that there's a really good chance we could see a huge, huge correction. It
could be 20 percent. You know? Now with high frequency trading accelerating, you know, strong moves in any direction, it could be worse
than that.
(END VIDEO CLIP)
NEWMAN: Theodore Weisberg, founder and president of Seaport Securities at the New York Stock Exchange, so how about it? Is Mr. Cuban right?
THEODORE P WEISBERG, FOUNDER AND PRESIDENT, SEAPORT SECURITIES: Well, I don't know if he's a lot smarter than me and certainly he's a lot richer.
But I don't know that he's right because I'm not sure that with all his money and experience that he has crystal ball. I'd be reluctant to make
that prediction. I would say this. I think that a change in Washington is actually going to be a plus for the stock market no matter who gets elected
because I think the public wants a change.
And I mean, if you want do get into the weeds a little bit, I think one of the first things we're going to see happen, no matter whose president, is
that Federal Reserve monetary policy just isn't doing it for this economy. And zero interest rates don't seem to work and I think the prospect of
perhaps a tax cut, corporate tax cut, and repatriation of all those offshore trillions of dollars, because of some tax holiday, is probably in
the cards no matter who's going to be president. So obviously, I don't agree with him. I have -- I'm reluctant to make any predictions. But I
think the change is actually going to be positive for the market no matter who it is.
NEWMAN: You know, that's an interesting perspective because you know it's an odd one. Most people say, look, it does matter who's in there. You're
talking about employing more fiscal policy than monetary policy. Do you think that's something that the market wants? That the market will respond
to that? Because you know what? When it comes to those trade deals it can go in a completely different direction.
WEISBERG: I -- can you repeat the question?
NEWMAN: I'm saying if we get into the weeds, fiscal verse monetary policy, the market better, you know, be careful what you wish for, right? Because
a lot of that may deal with problems, even in the trade agreement that is we now know, and Mr. Trump is very vocal about it. And perhaps Hillary
Clinton may be a little bit more vocal about that.
WEISBERG: Well, listen. We can't predict what the changes will be no matter who's elected. All I'm suggesting is that I think a new
administration in Washington, no matter whose elected, is actually going to be a plus for the market because the U.S. economy by all definitions, you
know, has been walking in the soft sand for eight years. And a Fed monetary policy of zero interest rates, clearly, I guess, you know, has
worked a little, really hasn't has didn't the results that folks wanted.
Yes, we have a better stock market and the unemployment rate improved, but you still have all kinds of variations of that theme. But the U.S. economy
continues to be sluggish and the world's economy too sluggish. So I think monetary policy has done just about all it can do. Now we need some real
change and I think one of those possible changes is a corporate tax cut to really, you know, get some juice into the economy and to get all of these
offshore dollars back into the U.S. now, that doesn't help the rest of the world, but certainly could help the U.S. and that would be good for the
market.
NEWMAN: OK. Excellent, Ted. Thank you. And thank you for getting into the weeds. We like the weeds here on QUEST MEANS BUSINESS. It's a good
place to be in the next five months. Appreciate it.
WEISBERG: OK.
NEWMAN: European stocks, meantime, closed mostly lower Tuesday. Greek bank stocks rallied while auto stocks slumped. And in the meantime, the
British Prime Minister spelled out what he calls the horrors, that's as he sees them, of Britain leaving the European Union. Now with the referendum
a few weeks away, David Cameron said the Brexit is the result that would probably please Vladimir Putin and even the leader of ISIS. Earlier today
he was warning business leaders about the economic uncertainty it would bring.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: I think when very respected organizations are saying as clearly as they are that output would be lower,
growth would be less, unemployment would be higher, prices would be higher, we would see a hit to living standards, that there is a very clear
consensus that leaving the EU would have not just a short-term effect on confidence and investment and growth, but actually would have a longer term
effect, as well.
(END VIDEO CLIP)
NEWMAN: Now, for what it's worth, a new opinion poll published in the "Telegraph" newspaper, says the remain campaign is gaining ground.
[16:10:00] Fifty-five percent of people saying they want to stay in the EU and 40 percent in favor of the so-called Brexit. Now sovereignty and the
power to make laws are central to the Brexit debate. CNN London's Correspondent, Max Foster, gains now what we see a rare access to Britain's
parliamentary archives and the one act which first tied it to the European Union.
(BEGIN VIDEOTAPE)
MAX FOSTER, CNN LONDON CORRESPONDENT (voice-over): Often described as the most important room in Britain, the Acts Room. High up in the houses of
parliament it's home to 64,000 documents covering some of the most important moments in British history.
(on camera): On these shelves are stacked truly ancient documents. Here we have some that are 500 years old. During the reign of Henry VII no
less. Here we have the Weights and Measures Act of 1497.
(voice-over): But who currently creates new laws is at the center of the referendum over Britain's membership of the EU.
JOHN REDWOOD, CONSERVATIVE MEMBER OF BRITISH PARLIAMENT: How much we raise in tax, what taxes we impose and how we spend that tax is no longer under
the control of the British parliament. In many respects under the control of the European union.
FOSTER (voice-over): Whilst others see giving up on aspects of control is part of a globalized world.
VICKY PRYCE, ECONOMIST: We have decided to do things in a certain way so far, which gives up some of the sovereignty, pulls sovereignty for
particular reason, which are good for us and Europe as a whole.
FOSTER (voice-over): Remain campaigners are keen to cite that between 1993 and 2014, only 13 percent of British laws, such as the working time
directive, came from the European Union. However, if you add up all of the EU regulations, including the ones that don't need to go through
Parliament, like mobile phone roaming charges, those championing a Brexit argue that 62 percent of British laws have EU origins. But only one law
was needed to make this possible.
(on camera): Well, here it is. This is the European Communities act of 1972. And this is the piece of legislation that signed the UK up to what
was the European Economic Community and which we now know as the European Union and this really paved the way for all of those regulations and
requirements that now apply in this country.
(voice-over): The UK does have an influence on those regulations. Equally so do the 27 other member states, which means Britain doesn't always get
what it wants. If the country went it alone it could set its own laws but if it wanted to be part of the single market, it would have to adhere to EU
rules with no say on how they're set. Sovereignty becomes a tradeoff between power and influence. These scrolls bear witness to changes in
power and attitudes over hundreds of years but who has precedence over the laws in the future will be decided by the British people. Max Foster, CNN,
London.
(END VIDEOTAPE)
NEWMAN: Now, India's Prime Minister Narendra Modi, has been trying to strengthen his country's ties with Silicon Valley and now he'll be face-to-
face with the biggest name in the business.
(COMMERCIAL BREAK)
[16:15:13] Tim Cook is arriving in India today for the first visit there as the head of Apple. He wrapped up a trip to China and the company faced one
of the worst ever financial quarters. While Apple is facing a slowdown in China, sales soared last quarter in India even though Apple hasn't got any
stores there yet. CNN's new Delhi Bureau Chief, Ravi Agrawal, explains.
(BEGIN VIDEOTAPE)
RAVI AGRAWAL, CNN NEW DELHI BUREAU CHIEF: Tim Cook has been to China eight times since he became Apple's CEO in 2011, but he hasn't visited India even
once until now. India represents a major growth spot for Apple.
In the last quarter Apple recorded its first decline in global sales in 13 years. India was a rare bright spot with sales up 56 percent. One reason
is that India has a fast growing smartphone market. In 2010, only 100 million Indians were on the internet. In 2015, that number jumped to 300
million. Most of that growth is coming from Indians who are discovering the internet not on pcs or Macs, but on smartphones, and there is still a
lot of room to grow.
The world bank points out a billion Indians remain offline. That's why Apple CEO Tim Cook is bullish on India. But it's not all smooth sailing.
Earlier this year, Apple sought government permission to sell refurbished iPhones to appeal to a broader section of the Indian market that permission
denied.
There is also the fact that while Apple has 32 of the flagship Apple stores in China, it has a grand total of zero in India. And that's because the
tech giant has struggled to comply with regulations to source a certain percentage of each phone's components locally. Lots for Tim Cook to mull
while he's in India.
Among the people he's expected to meet are India's Prime Minister Narendra Modi. Modi has courted the support of top American CEOs as he tries to
bring jobs and foreign investment to India. This is one meeting that any tech watcher would love to be a fly on the wall for. Ravi Agrawal, CNN,
New Delhi.
(END VIDEOTAPE)
NEWMAN: Now, China's tech scene still has a long way to catch up to the likes of Apple, but a new generation of entrepreneurs is looking to change
that. Now as part of "CHINA'S TECH REVOLUTION," Matt Rivers visited a state sponsored hub for company start-ups.
MATT RIVERS, CNN CORRESPONDENT (voice-over): Playing the guitar is cool. And yet, Zhang Bohan calls himself a geek because he developed the app that
helped teach him to play. The app is called "Poputar."
The app is called "Poputar", think popular guitar. A series of lessons on your phone shows you what to play. The guitar that comes with it connects
to the app and lights up spots where you're supposed to put your fingers. And voila, you're Jimi Hendrix.
We met up with Zhang and his partner Zhao Yan in a cafE up the street from the office. Along with another partner, the trio hatched their plan back
in 2014 around these tables.
He says this is where people with an idea, but no money, connected friends, or resources meet up. The garage cafe, where the next big idea is just one
espresso away, is an incubator where people rent small space to help launch their tech companies. It's one of forty or so on this street alone, called
"Innoway", a 200-meter stretch in northwest Beijing. More than 300 start- ups call this area home.
The Chinese economy is undergoing a broad transition, moving away from manufacturing and relying more now on services. In 2013, the Chinese
government invested 36 million us dollars into this street, where startups dominate instead of, and say, steel. It's a sign that times are changing.
Liu Wei is at the forefront of that change. He runs legend star, a company that specializes in seed investment, the first round of fundraising. In
other words, he helps start-ups actually start up.
He says 10 years ago, start-ups weren't big here because the investment community was very conservative. Few companies with the resources to
invest in start-ups actually did so. But he says that's swiftly changing as more and more people realize that technology is the key to profits in
the digital age.
He thinks the startup scene here will eventually rival and perhaps surpass the success of Silicon Valley. Back at Poputar, it's an exciting time.
The app just went live this week. Zhang says he's nervous but confident. Surprise, surprise, he plays guitar to alleviate stress.
[16:20:00] (on camera): Teach me how to do this. Let's see if I can learn.
ZHANG BOHAN, POPUTAR DEVELOPER: Yes, My pleasure.
A few admittedly terrible notes later, it does get a bit easier. I might not be a star, but Poputar is aiming become one in the ultra-competitive
app world part of a growing number of Chinese start-ups hoping to strike a chord with consumers. Matt Rivers, CNN, Beijing.
(END VIDEOTAPE)
NEWMAN: Matt is clearly a braver correspondent than I.
Now all companies start small. Some grow into behemoths and learn about China's tech giants and the Chinese Tech Revolution on
CNNmoney.com/Chinatech.
Now, back here in the United States, Amazon is proving that big tech still has room to grow. Company held an investor meeting today and shareholders
had very little to complain about. The stock is up more than 64 percent over the past year. For years, Amazon invested at the expense of profits
in cloud computing, in building its own devices and, of course, video streaming. It was all to get consumers into what it called the Amazon
ecosystem. Now, the company's latest plans revolve around a little device that could bring that ecosystem into your home. CNN money Samuel Burke has
more.
(BEGIN VIDEOTAPE)
SAMUEL BURKE, CNN MONEY CORRESPONDENT: Alexa, what time is it?
ALEXA: The time is 1:24.
BURKE: Alexa, when's the meaning of life?
ALEXA: The meaning of life depends on the life in question.
BURKE: Alexa, turn the lights on.
Apple has Siri. Microsoft with Cortana. Google has Now. Those voice systems live in your phone or tablets. Amazon's Alexa lives in your home.
She dwells in a series of amazon devices called Echo. Wi-Fi connected speakers with a microphone always listening for you to say the wake word.
Alexa -- amazon's making a huge push into two different market trends with this device. Artificial intelligence as well as the internet of things.
Projected to be a $14 trillion market by 2022. And even though Amazon doesn't disclose sales numbers investors are bullish on this sleeper hit.
ALEXA: Alexa, alarm off.
BRIAN BLAIR, CO-FOUNDER, GRAYS PEAK CAPITAL: What's interesting about this product is that Apple doesn't have one of these yet. There's rumor that
Google is going to actually introduce theirs in the next month or so, and Apple may end up doing something like this. but this is the truly first
smart home hub that we have seen that people are using, and it's getting great reviews and it really just makes sense.
BURKE: What's unique about the Echo is you don't have to be nearby to hear you. You can be in another part of the house, or on the other side of the
room and it will still pick up your voice.
Alexa? Who won the Warriors game last night?
ALEXA: Last night the Warriors beat the Trail Blazers 125-121.
BLAIR: It's making the home and the family more acquainted with everything that Amazon offers and so that's where the opportunity is.
BURKE: Alexa, I want to hear some Coldplay songs.
ALEXA: Shuffling Coldplay from Prime Music.
BURKE: Just like Amazon's other hardware products, they're always trying to entice you to pay for Prime.
Alexa, turn the volume up.
Placing an internet connected microphone in the middle of your house may leave some with privacy concerns. Amazon says echo will only start
listening once you say, "Alexa" and the light indicates this it's all ears.
Though a curious reporter with "Gizmodo" asked the FBI if it had ever wiretapped with the Echo. The FBI would neither confirm or deny that to
"Gizmodo." Amazon told CNN it doesn't comment on speculation. And instead of apps, Amazon says the Echo has skills. Over 1,000 of them. And
services from companies like Uber, smart home devices and news updates from CNN.
Alexa? Who is CNN's Samuel Burke?
ALEXA: Sorry. I can't find the answer to the question I heard.
BURKE: Clearly artificial intelligence still has a way to go.
(END VIDEOTAPE)
NEWMAN: Oh, you describe that as artificial intelligence too. Now, Samuel, you know that I'm a gadget phoebe and I'm holding a little speaker.
I know. Look, look. I'm the skeptic here. You know that I'm always going to say Amazon is not at great at hardware like this. Why would this be any
different?
BURKE: They've had a hit with the Kindle. Then a huge flop with the Amazon Fire phone. And usually when I report on the internet of things,
Paula, internet connected devices, a lot of times I just find that they're useless. But this is actually useful and it actually started to make sense
to me, a lot of other smart devices I reported on. For instance, the smart lightbulbs and never thought what will I do with a smart lightbulb? Why
connect to the phone?
[16:25:00] But now that I connected lightbulbs to the Alexa and I can just walk in the room and say, "Turn on the lights," as you just saw. It really
started to make me realize why the market has that huge trillion-dollar evaluation. A lot of other stuff starts to makes sense and this product
really has a lot of room to grow in I think.
NEWMAN: Well, let's see what it actually does, because we're going to come right back here in a few years, Samuel, and we'll see if this gadget
actually made it into people's homes.
BURKE: It going to have our jobs, Paula.
NEWMAN: If it tells me where my son's homework is, Alexa can have the job. OK.
BURKE: She'll do the homework for you.
NEWMAN: That's a good point too. Well, we'll get into that another day, Samuel. Appreciate it as always. Thanks, Samuel Burke.
As fuel prices rebound, Delta says airfares may increase, surprise, surprise. We'll be back with more.
(COMMERCIAL BREAK)
[16:30:00] PAULA NEWTON, CNN ANCHOR: Hello, I'm Paula Newton. Coming up in the next half hour of QUEST MEANS BUSINESS, the chief executive of HP
shows me the company's brand new 3-D printer and I'll ask Royal Caribbean about the world's largest cruise ship as it finally goes the sea. Before
that, though, these are the top news headlines we're following this hour.
At least 46 people have been killed in 3 attacks across Baghdad on Tuesday. ISIS is claiming responsibility for a car bombing that killed 24 people in
the area known as Sadr City. Follows a series of ISIS attacks in the Iraqi capital just last week.
The U.S. and Russia are promising to strengthen the fragile truce in Syria. But talks in Vienna didn't do much to revitalize that peace process. World
leaders failed to agree on a schedule of further talks. U.S. Secretary of State John Kerry suggested finding a way forward would be a challenge.
(BEGIN VIDEO CLIP)
JOHN KERRY, U.S. SECRETARY OF STATE: A variety of competing interests are going to have to be reconciled and those involved in this conflict with
competing agendas are going to have to be willing to prioritize peace.
(END VIDEO CLIP)
NEWMAN: Some disturbing video of Kenya. The country's chief of police says he wants an investigation after officers were shown beating and
kicking a man after he fell to the ground. It happened on Monday during a protest in Nairobi. Police had moved into the area to disperse a group of
protesters.
Thousands of oil workers have been evacuated from northern Alberta in Canada as huge wildfires move closer to oil sands installations there. The
fires are likely to affect oil production in the region. The premier of Alberta praised the oil companies for getting their work earls to safety.
(BEGIN VIDEO CLIP)
RACHEL NOTLEY, ALBERTA PREMIER: At this point the fire's not moving north. It is moving towards the east so we're told that it's not a significant
concern, but that being said, as we saw with the original evacuation the oil and gas industry was remarkable in terms of their ability to air lift
15,000 residents of Fort McMurray out of their camps through air. And so they assure us that they're more than able to evacuate the remaining
roughly 6,000 folks who are on very temporary basis moved further north.
(END VIDEO CLIP)
NEWMAN: Hillary Clinton is trying to close the door on Bernie Sanders and bring the Democrats primary contest to a close. Now, voters in Kentucky
and Oregon are at the polls today as we speak. Clinton is making a push to try and hold Sanders momentum after he won a string of late-season
victories. According to CNN estimates, even if Sanders wins all the remaining pledge delegates it wouldn't be enough to stop Clinton from
becoming the Democratic nominee. Still his campaign hasn't shown signs of getting out of the race and conceding to Clinton.
Now in this rule busting 2016 race for the White House the Democrats are finding support in some unlikely places.
Joining me now is Christie Todd-Whitman, the former Republican Governor of New Jersey. I said Republican Governor of New Jersey. And she says she'll
vote for Hillary Clinton over Donald Trump. And Governor, you know, many people will think that you are traitor to the Republican Party for even
thinking of it.
CHRISTIE TODD WHITMAN, FORMER GOVERNOR OF NEW JERSEY: Well, I've said I could consider it. I didn't say I would. I got to wait and see what
happens. But I have said very repeatedly I will not vote for Donald Trump. There is a time to put your country ahead of your party. And I believe
this is one of those times. But I always can exercise my option to write in and I'd write in John Kasich. Because I think we had an opportunity to
nominate someone who is extremely able, experienced and capable of carrying on in a way that would be representative of what this country stands for.
I do not see that Donald Trump can do that.
NEWMAN: But in terms of going against the will of your party, the democratic will of your party. They voted in these primaries. They want
Donald Trump. Is there a way to get behind him? And what's the danger of the Republican Party getting behind him?
TODD: Well, first of all, before Indiana, almost 60 percent of those who voted in the Republican primary voted for someone other than Donald Trump.
And as we have seen for many of it, several of those who voted in the Republican primary have never been Republicans before now and that could be
good. You say bringing new people in. How long they stay Republicans, are their beliefs in concert with the Republican party? I don't know. It
wouldn't seem so because Donald Trump is a Democrat before he became a Republican and if you listen to him I'm not sure where he is.
I think we are going to see -- while I believe that the Democrat convention will a whole lot more interesting than the Republican convention, I don't
see Sanders people going down easily with the number of delegates he's gotten. They're still going to have a contested convention, I think, even
though everyone thought it was going to be the Republicans.
But I think they'll be a real rethink of the Republican Party after this primary. What is it? Where are its core values? Is it something that was
going to -- we're going to see a third party come up. Because right now there's a populous movement going in the country and that's the appeal of
both Donald Trump and Bernie Sanders.
They're appealing to the same basic people and elements. People who say the current system hasn't served us. We're working twice as hard to stay
in the same place. We don't feel safe. We don't feel secure. We don't think anyone in Washington is listening. And we don't want anything to do
with anybody with anything to do with the system as it is.
NEWMAN: But aren't they right about that? In the sense that many people are looking for a shake-up in Washington, and they're saying Donald Trump
is the person to shake Washington.
TODD: Well, Donald Trump would certainly shake Washington. My fear is he'll also shake the world and in a dangerous way. I don't see him as
being someone who understands foreign policy when he takes after the British Prime Minister and the Mayor of London, and says, well, I have a
long memory and I'll remember what they said and we may not have good relations.
Those are our allies. And right now the world needs us to be a very stable and secure entity. And with Donald Trump, he's saying I want to keep
everybody on edge so they don't know what we'll do next. That's not the way ensure safety in the world.
He called for taking out the families of ISIS followers. He's called for banning all Muslins. Those are two things that are disruptive to trying to
ensure safety and security on our shores.
And as far as some of his domestic policies go, I don't know where he is. He's already changed his position on taxes. Obviously, as someone who
cares deeply about the health of the environment and of human health, his stand on things like the environment are totally counterproductive. And in
could potentially roll back years of success that we have had while we have seen our economy grow.
[16:35:00] I just don't see -- there's no there either when you look at the business record he claims is so great. When you start to really dissect
it, there are a lot of failed businesses there, there are a lot of bankruptcies. He's taken businesses through. He hasn't personally gone
through bankruptcy, but he's taken businesses through bankruptcy and got his own money out and left other people stranded. There's a lot of
question that makes me very uncomfortable. He's a bully. And he demeans people and divides people and not healthy.
NEWMAN: Well, governor, thank you for coming in. We'll continue to take a measure of that unease with you and others in the Republican Party,
appreciate it.
TODD: All right.
NEWMAN: Delta airlines says it wants to raise ticket prices as fuel costs climb. I know, already. The world's largest airline in terms of
passengers carried says it will pull back on expansion plans.
Now, the price of crude is still way down from where it was just two years ago, but it has been rebounding. Fuel is the second largest expense for
airlines after staff wages.
Qatar Airways announced it's moving into Delta's turf with direct services from DOHA to Atlanta due to start June 1st.
And another bit of news today, there's also increasing the stake in IAG, the parent company of British airways and Iberia. Qatar Airways, CEO,
Akbar Al Baker, joins me now live from London. We appreciate your time, sir. In terms -- oh, pardon me, you are in Atlanta. Obviously, because
you are launching that service from Atlanta to DOHA. We know you are excited to do that. In terms of you being able to capitalize this, is this
really what open skies you think will mean to you in terms of being a player in that American market?
AKBAR AL BAKER, CEO, QATAR AIRWAYS: Exactly. This is why the Americans invented the open sky. It is to allow airlines to operate freely between
countries and this is exactly what we are doing.
NEWMAN: In terms of what I was discussing with the oil prices, how much do you concern you as an airline especially as you embark on expansion?
AL BAKER: As you mentioned that oil is actually the biggest single expenditure item in our industry, we have been hedged adequately to protect
us from the oil price rising beyond certain limit. And at the same time we are trying to bring fuel efficient airplanes and making sure that our
pilots fly in a very robust way, so that we conserve fuel as much as we can and make our airline very efficient.
NEWMAN: In terms of trying to take advantage of that open skies agreement, what other American cities are you actively looking at right now?
AL BAKER: We are looking at some more American cities but unfortunately I will not be able to give in to that question.
NEWMAN: OK. Moving on then to another question, a lot of people's mind. I mean, are you concerned about some of the blow back you may suffer in the
United States? I know Delta isn't happy about it, but there's political things, as well. I know that in The Airline Association, the flight
attendants are protesting a party that you're having with Jennifer Lopez today. They urged Jennifer Lopez to boycott.
And then also we had Donald Trump saying that someone like you before you can sit there in Atlanta would need special dispensation to enter the
United States. How much does that kind of blowback concern you in terms of your strategic case to be made in the United States?
AL BAKER: Let me first answer your first question. I think that people have been misled and their thinking is misplaced. The things with which
they're accusing the airline is unfounded and actually it is far from the truth. So I really don't want to dwell too much upon these ill-founded
demonstrators.
As far as Donald Trump is concerned, I think that he's a businessman. And he will oblige with all the agreements that the United States government
has signed, especially with -- when it comes to fair competition and at the same time allowing business to flow in and out of United States freely.
NEWMAN: It's interesting that you say that. You don't think Trump presidency will hinder you being able to take advantage of that open skies
agreement?
AL BAKER: Any president that is elected will always look at the interest of the American people. Maybe due to electioneering they are making the
false promises. But at the end of the day everybody has to look what is better for America. And what is better for America is free flow of trade
and goods and services.
NEWMAN: OK, Mr., Al Barker, we appreciate your time there for us live from Atlanta. Appreciate it.
AL BAKER: Thank you.
NEWMAN: Now, Russia is one of the countries that's been hit hardest by the fall in oil prices. The ruble plummeted versus the dollar since the
beginning of 2014. You can take a look at that dramatic graph. Sanctions are still taking a toll, as well. But according to the Russian finance
ministry, there are signs the economic slump is beginning to ease. Now, the country's second largest bank, VTB, announced it turned a profit in the
first quarter. Though it was still worse than analysts expected. I asked the CEO if he felt the economy was doing better.
[16:40:00] (BEGIN VIDEOTAPE)
ANDREY KOSTIN, CEO, VTB: Yes. I think that's the general opinion of the expert that is the worst behind us and recently I spoke to the ministry of
economy. He shared the view of the minister of finance. And the expectation even that as a result this year we'll have a positive economic
growth. Maybe very, very little but small, but still not a negative like we had last year.
So definitely things are improving. Inflation is under control. We probably have only half of the inflation level, which we had last year. So
it looks like the economy's picking up. And oil prices are a little bit stabilizing. So it's also good news for our economy.
NEWMAN: In terms of the sanctions and the way it would affect your bank, though, I mean, obviously, you would want them lifted. But is it
absolutely necessary in order for Russia and your bank in particular to return to recovery point?
KOSTIN: You see, we somehow adjust our activity in line with the sanctions. And, of course, the worst influence for us that's the problem
of getting new capital. Because, you know, VTB on course for privatization and definitely with this kind of market there's not much opportunity for
privatization or at least that's pretty much low privatization for VTB. But as far as liquidity is concerned, I think we feel quite comfortable.
There's enough equity inside Russia, so we're doing our business just as normal.
So basically, definitely would like -- we would like sanctions to be lifted. It will pave the way for our further growth, further expansion.
But at the moment, we somehow got used to the sanctions. And don't feel too much burden on this.
NEWMAN: And yet, when you look at oil prices rising, do you think that will help mitigate the impact of the sanctions even if they replace in
months or more than a year?
Well, that's for sure. I mean, most of the experts arguing that the worst effect we had on lower oil prices rather than sanctions, but I think both
are not good, I mean, low oil prices and sanctions. But oil prices are vital for Russia, at least at this stage of Russian development of our
economy. We don't have still restructured economy and our economy still very much depends on oil and, of course, other natural resources, raw
materials. It's also very important. All commodity prices are quite --
(END VIDEOTAPE)
NEWMAN: In the 1980s, HP revolutionized printing with its DeskJet. Now it wants to do the same with 3-D printing.
(COMMERCIAL BREAK)
NEWMAN: Now, imagine a printer that could print copies of itself. HP has revealed its first commercial 3-D printers, and says they will reinvent
manufacturing. Still, it may be a while before you have one of these things. Prices will start at $130,000 when they go on sale later this
year.
[16:45:00] Deon Weisler, is the president and CEO of HP, and he joins me now live from Palo Alto, California. Thanks for being with us. I mean,
what's been written up about this thing is tremendous. It could be the most disruptive event in manufacturing since we first heard of 3-D
printing, that's just one from engineering publication. The expectations are so high. Please tell me how you expect to meet them.
DEON WEISLER, PRESIDENT & CEO, HP: Well, great. And first of all, thank you for having me. Great to be here. It's been a really exciting day for
us here at HP. We're all about reinvention. And today as you quite rightly said, this is about reinventing manufacturing. About changing and
democratizing manufacturing and bring it much closer to where customers buy and service their products. And we've done that through the release of
these two new products that is hit the market that have targeted the commercial space.
NEWMAN: When you say, what this is going to do, though. Can you give us a real-life example when you want to try to employ this, trying to sell this?
How will it revolutionize manufacturing?
WEISLER: Well, you opened in a way that said, you know, printers that print themselves. And indeed, our printers, 50 percent of the parts inside
the printer are actually printed by the printer. This is an example of one of those parts. You can see it's a fully flexible part. Traditionally,
that would have to be manufactured in a very faraway place. You have to build inventory. Put it on supply lanes chains. And ship it all over the
world. This can now be printed where wherever you're building the device. And that enables you to have breakthrough economics. That just isn't
possible through traditional manufacturing methods.
NEWMAN: Now as you were saying, these are commercial printers. I mean, at this point, who do you picture the first customers to be?
WEISLER: Well, today, we also announced some great partnerships with Nike, with Siemens, with Johnson & Johnson, with BMW. These are all visionary
companies that understand the value of innovation and how they can leverage 3-D printing to disrupt the markets they're in to deliver excellence in
products for customers.
NEWMAN: In terms of when you look at entrepreneurs, and I have several family members myself. They run small manufacturing outlets. This is
$130,000. Do you think for the smaller start-ups that there will be purpose to spending that $130,000 on that HP 3-D printer?
WEISLER: Well, we thought about that. And if you're going to truly democratize manufacturing you have to make the technology available to
everybody. And so one of the key launch partners today is a company of Shapeways. And not familiar shape ways go to shapeways.com. And what
you're able to do there is surf their broad library of 3-D designed products or design your own. And then send that off to a 3-D printer.
Now, in the background, many of the parts will be printed on HP 3-D printing devices, and then they'll be shipped to you the next day. So
those particular small businesses can indeed participate in this democratized world a manufacturing.
NEWMAN: Yes. I mean, and it really is mind bending. I have to ask you. HP has been through a tumultuous time in the last few years, and I think
some people may look to this invention and see some skepticism. We were going through org chart just to figure out what's going on with your
company. I mean, what gives you the confidence to be telling us that, look, this will revolutionize manufacturing? But also, this will reinvent
HP yet again.
WEISLER: Well, I think we have a long history of invention. That's what is at the very DNA of this organization. Whether it be Hewlett-Packard
enterprise or HP Ink, we separated these companies to enable to fuel our innovation engines to able to drive faster.
We changed the way offices worked when we released the DeskJet and the LaserJet printers and we're leveraging more than 30 years of intellectual
property from our core, and bringing it across into this new world of 3-D printing. So when it has that HP logo on it only a company like HP can be
as disruptive in changing the way manufacturing works.
All right. We'll see if we can hold you to that in the months and years to come. Mr. Weisler, thanks so much for your time. Appreciate it.
WEISLER: Great to be here. Thanks for having me.
NEWMAN: Now, it has 20 restaurants, 16 decks and crew of more than 2,000. We'll show you the world's largest cruise ship. That's after the break.
But first, a highlight from "MAKE, CREATE, INNOVATE."
(COMMERCIAL BREAK)
[16:51:49] NEWMAN: The world's largest cruise ship reached the English Port of Southampton on Tuesday after the maiden voyage. Harmony of the
Seas is 25th ship in the Royal Caribbean's fleet. It's 362 meters in length. Stay with me here. That's longer than the Eiffel Tower laying on
its side. It was built using 500,000 individual parts. The ship boasts 23 swimming pools. And a 10-story water slide and already makes me dizzy
thinking about it. I asked, Michael Bayler, the CEO of Royal Caribbean International, why the world needs a ship like this.
(BEGIN VIDEOTAPE)
MICHAEL BAYLER, CEO, ROYAL CARIBBEAN INTERNATIONAL: Well, why do you need the ultimate family vacation? That's exactly what Harmony of the Seas is.
It's just packed with the most amazing entertainment, adventures, innovations. It truly is the ultimate vacation.
NEWMAN: Now, I know that you're really giving it a good sell job. I'm not sure you really need to sell that ship to people that like cruising. But
if you can just describe in it a sense. When you saw this on, you know, the drawing board as it were, and now have seen it, in the flesh being
launched, I mean, what is it like?
BAYLER: It's truly amazing. I mean, I think for all of us at Royal Caribbean it's literally like having a baby, a new child. We've spent a
lot of time planning and thinking about this. We have put a lot of expertise and energy into designing it. And I think for all of us, the
fact that now this ship has become a reality is genuinely exciting for all of us and certainly for our customers.
NEWMAN: A billion-dollar investment as far as we can understand. How are you going to be able to make it back with this ship?
BAYLER: Actually, it is closer to $1.5 billion investment. And we -- this ship is the kind of a cross between our quantum class and oasis class ship.
It is really the next generation. And if you look at our forward bookings for that ship, for this summer, we're feeling pretty confident about paying
back that investment.
NEWMAN: OK. But it must take away from the other ships that maybe aren't getting the love that they're used to getting.
BAYLER: No, our ships are getting the love all around the world. They think what's great about Royal Caribbean, we have obviously been in the
business for a long time. We deliver a great vacation. And I think we see the demand growing across many markets around the world for our company.
NEWMAN: You know, I have to ask you. With cruising and I know you heard it a million times, a love/hate relationship. And for the people who don't
understand why anybody goes on a cruise. You know, you have the issues with illnesses that break out. I mean, Royal Caribbean had the incident
with the rough seas a few months ago. What can you tell us going forward in terms of really trying to look at some of those issues? Because those
become huge headaches for the governments involved, not just for your company.
BAYLER: Yes, I think, obviously, things do happen. Things occur. I think statistically when you look at the number of incidents it's relatively
small. We spend a lot of time and energy minimizing and trying to eliminate any of those types of situations.
[16:55:00] This year we'll carry close to 4.4 million people on cruises with Royal Caribbean. And literally the number of events this happen is
almost zero.
NEWMAN: Well, it's not almost zero though for the people who go through it. What do you have for people that have an apprehension? And as I said,
a lot of people that are just angry that, you know, whether these ships come into port and just the headaches this they cause whether from health
perspective or safety perspective?
BAYLER: Yes, I think that's a negative perspective on it. I mean, when our ships come into port, they bring a lot of happy vacationers. There's a
considerable economic positive economic impact in the port that is we call in to. I think the relationships that we have with these ports and
destinations is very, very positive. So I think that, you know, you can look at it from a negative or a positive perspective. We think it's a very
positive experience.
(END VIDEOTAPE)
NEWMAN: All right. Swipe right to stay in the EU. Swipe left to leave. What am I talking about? We will tell you. It's Prime Minister David
Cameron's latest ploy to get out the youth vote against Brexit. We'll explain.
(COMMERCIAL BREAK)
NEWMAN: David Cameron wants the U.K. to swipe right on the European Union. Users of the dating app Tinder might see ads, disguised as dating profiles,
encouraging them to come out and vote in the referendum next month. This isn't Tinder's first date with politics, unfortunately. It launched a
feature called Swipe the Vote, back in March. Users were able to swipe left or right to identify a candidate that matched their values. I think
it's all pretty creepy.
[17:00:00] And that is QUEST MEANS BUSINESS. I'm Paula Newton and I'll be right back here again tomorrow.
END
