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Quest Means Business
Clinton Keeps Narrow Lead in Must-Win States; Market Slide Continues Amid Election Uncertainty; Fed Keeps Interest Rates Unchanged; Dershowitz: Comey Should Explain Himself or Resign; Iraqi Troops 200 Meters from Mosul; Corruption Report Piles Pressure on Zuma; Protesters Demand Zuma's Resignation in South Africa; Report: MH370 Crashed at High Speed; Enel CEO: Worrying Divisions in the U.S.; Russia Cooks up Trump Tribute at a Fast Food Restaurant; Game 7 of World Series Tonight
Aired November 02, 2016 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[17:00:00] RICHARD QUEST, CNN ANCHOR: There goes the closing bell on Wall Street. It showed a sea of red with the market up 77 points, down under
18,000 in what was a fairly grim trading session. Now, oh, yes, a robust gavel that brought trading to an end on Wednesday. It's November 2nd.
Tonight, Clinton clings on. Her new poll gives her a narrow lead in her must-win states. The markets can't take the tension anymore. The Dow just
closed beneath 18,000. And Jacob Zuma's day of reckoning, protesters pack the streets of Pretoria, we'll be in Johannesburg to find out why.
I'm Richard Quest. As you can see from here, a pretty dreadful day on the markets, but I still mean business.
Good evening. Tonight, there are less than six days to go to the polls, and new polls in the battleground state show the U.S. presidential race is
tightening ever so greatly. Voters in Nevada are now betting on Donald Trump, 49-43 percent. It's a reversal of fortune for Clinton. She was up
by two points there last month. The Democratic nominee is gaining strength in Florida. There she leads Donald Trump 49 percent to 47, which makes it
within the margin of error. Pennsylvania and Arizona have returned to their historic political corners, blue for Pennsylvania, red of Arizona.
On the issues, the voters across all four states are now viewing Donald Trump as more trustworthy and better for the economy, whilst Mrs. Clinton
has the edge of foreign policy and temperament to be the commander-in-chief of the U.S. forces.
You've only got to take a look at the range and extent of travel and away to see how this is heating up in the final week. The candidates and their
surrogates are logging thousands of miles in the final stretch of the campaign. You've got president Obama is trying to put the battleground
state of North Carolina firmly into Clinton's column. New polling from Quinnipiac shows she's ahead in North Carolina by three points. Clinton
herself is trying to turn the tide in Arizona and Nevada. But look, you've got Chelsea Clinton, president Clinton, Bernie Sanders, Vice President
Biden, the candidate herself in Arizona and Nevada and Elizabeth Warren in Nevada.
But taking to the other side, the Southwest you've got Mike Pence, the running mate for Donald Trump, over in three states in a day, Colorado, New
Mexico and Arizona. The Trump family itself is spread out on the East Coast as industrial West. You've got Eric Trump in Ohio over here where
his father is ahead by five points. Donald Trump is focusing on the must- win state of Florida himself. He trails in the polls as I was just saying. So, you've got Ivanka Trump out on the trail. Donald Trump, junior is out
on the trail up in Michigan. They're all out fighting, and you'll get an idea of the tone and tenor when you see that Donald Trump believes that
Florida is within his grasp.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: The polls have just come up. We're way up in Florida. I shouldn't say that, because I want
you to go vote. Okay, ready? We're going to pretend we're down. We're down. Pretend, right? We'll pretend we're down. We've got to win. We
got to win big. We've got to beat her.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
BARACK OBAMA, U.S. PRESIDENT: I hate to put a little pressure on you, but the fate of the Republic rests on your shoulders. The fate of the world is
teetering and you, North Carolina, are going to have to make sure that we push it in the right direction.
(END VIDEO CLIP)
QUEST: Just look. This is the Republicans on the map. These are the Democrats on the map. We're going to go to Florida. Joining me CNN's Jim
Acosta in Orlando. It's very difficult to know what to make of Florida. I was there last week, all week, in this final stage. The way the trend has
been, Jim, the Trump campaign must be feeling very optimistic or enthused.
[17:05:00] JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Absolutely, Richard. When you look at the final stretch, the last week of a campaign,
you look at two things. You look at battleground polls and you look at trend lines. If you look at those two categories, right now Donald Trump
is in a very good place or at least a much better place than where he was a week ago. A lot of this was happening even before the FBI decided to open
up this new inquiry into Hillary Clinton's emails. Not only does he have the polls moving in his direction, he also has the news narrative working
to his advantage right now. So, things are going very well for Donald Trump.
I will say that throughout this day here in Florida, he was in Miami earlier today, just wrapped up an event in Orlando. He'll be in Pensacola,
in the panhandle later tonight. He has been seizing on this new FBI inquiry into Hillary Clinton's emails all day long. He predicted that if
Hillary Clinton is elected president, there will be a constitutional crisis as soon as she is sworn into office. That there will be non-stop
investigations. He's basically delivering the message that this is going to be taking the country back to where they were in the 1990s dealing with
Clinton investigations. Referring back to what happened to her husband Bill Clinton when he was president. So, Richard, yes, Donald Trump is
feeling very confident right now. He has a lot of reasons to feel confident.
Let's keep in mind. He has to do better than Mitt Romney did four years ago. If he duplicates what Mitt Romney did four years ago, he loses. He
has to flip states. That's why he has to flip Florida. The polling average according to CNN shows they're just about deadlocked here in
Florida. He has to win states like Ohio. He has to perhaps when a state like Pennsylvania. He can't lose a state like North Carolina, which may
drift into Hillary Clinton's column. So, the electoral college map is what is daunting for him at this point, Richard.
QUEST: Jim, good to see you, sir, thank you. The electoral college, spent a great feel of time talking about that here on QUEST MEANS BUSINESS.
Now, the financial markets appear to have lost the confidence in what happens will happen after November 8th. There are three things we're
looking at in particular. You've got first of all, what we call the VIX index, the volatility and the fear of it all. The Wall Street fear gauge.
You'll see how it hovers around 15 down here, but then we've got this tremendous spike towards the end of October, largely on the back, of
course, of the FBI investigation into further email allegations, which suggests, of course, a more difficult time for Hillary Clinton.
But this is at the highest level, the VIX index since Brexit. We talked a lot about the S&P 500. It's had the last seven days in the red, which is
the longest losing streak since 2011. Again, I talk about Brexit, but this is the longest streak since the euro zone crisis, a very solid fall-off
here. And you remember Sam Stovall's model that says, if the index is down more than 2 percent since August the 1st, then that presages well for the
underdog, which is, of course, in this case Donald Trump.
Finally, the Mexican peso, as Trump's chances of winning rise, so the Mexican peso plummets. That's exactly what we've seen. You remember
during the debate we saw the peso was very much a barometer of how Donald Trump has done here. Now we see it as a barometer of how the overall
election is going. The Trump anti trade rhetoric and plans to build the wall. Mexico remains the U.S. single biggest trading partner. Mohamed El-
Erian, is the chief economic advisor at Allianz. He's in Newport beach. VIX, S&P, Mexico, wind blowing in any direction, which one should we be
looking at?
MOHAMED EL-ERIAN, CHIEF ECONOMIC ADVISOR, ALLIANZ: All three, and all three tell you that markets are starting to price in this unusual
uncertainty. We've had not just politically, which you've talked about, but also institutionally, financially and economically. So finally, the
markets are starting to price in this uncertainty. And in the process, they're saying, you know what central banks? I'm not sure you can continue
protecting me like you have in the last few years.
QUEST: Explain to the viewer why the uncertainty arises with a Donald Trump victory when we were seeing it last week and the week before -- the
week before Hillary Clinton in the lead, the markets were more calm. What is it that the markets worry about?
EL-ERIAN: They worry about uncertainty. So, the baseline used to be a Hillary Clinton win plus -- and this is important -- plus a gridlocked
Congress. So, the checks and balances operate and you get more of the same. What is more of the same? Low but stable economic growth, and
central banks supporting asset crisis.
[17:10:02] Now suddenly you have Mr. Trump narrowing Mrs. Clinton's lead. And that raises uncertainty about economic policies. And also, don't
forget Donald Trump has attacked the Fed. So, markets can no longer rely on the Fed as being there to cover their backs.
QUEST: I saw the Fed statement today. We did a comparison of this Fed statement versus the last one. Yes, there is one voting member that
shifted from one side to the other, but did you see anything particularly significant? There was some small change, linguistic changes. Did you see
anything that particularly grabbed you?
EL-ERIAN: In this environment, in this political environment, the Fed wanted to deliver a non-event. And that's what they did. By delivering a
holding operation. So, they said that the case continues to strengthen for a December Fed hike, but they kept the options open. Why? There's an
election. There's two labor market reports. And there's a referendum in Italy. So, it's really a holding operation from a Fed perspective.
QUEST: We've got six days to go. We'll look at every barometer. The VIX index is a good one. Listening carefully to what you're saying, Mohamed,
I'm gathering we'll see a lot more of this volatility in the days ahead if the polls continue to show that narrowing that you talk about.
EL-ERIAN: I think that's right. And people are going to start taking money off the table. They're going to start thinking more about what can
go wrong in their investment rather than just what can go right. I suspect you'll see volatility and you may see some continuation of this losing
streak.
QUEST: Good to see you, sir. Be assured of one thing. We'll be requiring your duties over the next few weeks as we try and parse the difference.
Thank you, sir.
A major factor behind the market jitters, the FBI director's remark about the investigation of Hillary Clinton's email. President Obama has weighed
in for the first time. He said the intimations and suggestions shouldn't be allowed to influence the public's view of the case.
(BEGIN VIDEO CLIP)
OBAMA: I do think that there is a norm that when there are investigations, we don't operate on innuendo. We don't operate on incomplete information.
We don't operate on leaks. We operate based on the concrete decisions that are made.
(END VIDEO CLIP)
QUEST: Alan Dershowitz, Professor Dershowitz is one of America's top constitutional lawyers. He says James Comey has two option plans, explain
himself or resign. His latest book, which I have here, brilliantly titled "Electile Dysfunction: A guide for unaroused voters."
ALAN DERSHOWITZ, PROFESSOR EMERITUS, HARVARD LAW SCHOOL: Nice to see you. A lot of voters are getting aroused now, but they're still negative. Most
are voting against a candidate rather than for a candidate. Now they're voting against the director of the FBI. There so much dysfunction.
QUEST: They've been voting against a candidate pretty much since day one. Since the conventions when it became clear who the two candidates were.
What I discovered in Florida last week is that's very much the case. We'll come to the candidates in a second. In terms of what Director Comey did,
do you think he now really has to explain himself more?
DERSHOWITZ: Absolutely. He left the American public in a state of confusion. He should have said, if he was going to say anything, we have
discovered new emails. I haven't read them. The FBI agents haven't read them. The fourth amendment prevents us from reading them until we get a
warrant, or getting now. We don't know what's in them. We don't know any more than you do. So, your votes should not be influenced. I'm simply
making a technical announcement to Congress.
QUEST: He couldn't have done that. That would have been de facto the same thing, Alan. If he said that -- because he did say in his statement right
at the end, we don't know --
DERSHOWITZ: He said it was pertinent. He said there pertinent and that allowed Trump to say they're reopening the investigation. When you're the
FBI director, give a play-by-play the way you do when you announce the world series, man on first, man on second, two outs. You don't do a play-
by-play. You announce at the end, investigation is complete, no indictment. Investigation is complete, indictment.
QUEST: So, do you have -- but he says having given those assurances to Congress that there was nothing else there. Once these emails were
discovered, he had no choice in his view.
DERSHOWITZ: Absolutely wrong. What he said to Congress exactly was this. If we discover more information, we will look at it. He didn't have to
tell Congress that he discovered new information. He was following his promise. He was going to look at it. What if it turns out that he
influences the election and that there's nothing there?
[17:15:00] Let me tell you what else is wrong? Because he's getting so criticized, he may have an unconscious reason for trying to find something
that isn't there so he can say afterward, well, I didn't influence the election, it was all Hillary Clinton's fault. He has put his own thumb on
the scale.
QUEST: When the election is over, because clearly they're not going to -- I say clearly, but I don't know anything before that. This investigation
continues, doesn't it?
DERSHOWITZ: Yes.
QUEST: Whether she is president elect Clinton or not.
DERSHOWITZ: So many other investigations too. The investigations of Trump continue as well. Why aren't we hearing about that? There's an
investigation at Trump University that may very well be criminal. We now learn he may have committed tax fraud. Today there's going to be a press
conference about sexual assaults in the Federal Court in New York. He has said he's going to sue all the people who have alleged assault against him.
If he's the president, he's going to have no time to govern. All he's going to be doing is responding to lawsuits.
QUEST: How concerned are you? And again, taking your book, how concerned are you at the state of what we have seen? You've seen a few elections in
your time. You know many of the candidates.
DERSHOWITZ: I do.
QUEST: Personally, and professionally in some cases.
DERSHOWITZ: Yes.
QUEST: How concerned are you?
DERSHOWITZ: Well, I think we're seeing in the world a trend to an extremism. Look at the British Labour Party. Look what's happening in
Eastern Europe. I'm hoping that trend doesn't catch on in the United States. We need to regain the center. We need to see the debates between
liberals and conservatives, not between the alt right, the extreme right and the extreme left. I'm very worried about the world. I'm worried about
American leadership of the world. The reason I'm so supportive of Hillary Clinton is she's a centrist candidate, an imperfect centrist candidate.
But I prefer my imperfections in the center than on the extremes.
QUEST: At least you've come off the fence, sir. Thank you. Wonderful to see you.
DERSHOWITZ: Thank you.
QUEST: As we continue, we're going to go to South Africa. We can't stay away from corruption tonight of one sort or another. The allegations of
corruption involving Jacob Zuma. This time we have a report from -- we've seen a report into the corruption and this call for a special commission.
We'll be in Johannesburg after the break. It's QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: After weeks of fighting, Iraqi troops can now finally see their target, which is, of course, the city of Mosul. Getting to the city has
been a struggle with ISIS snipers, suicide bombers and artillery holding back the advance. CNN's Arwa Damon has an astonishing firsthand look at
exactly what the Iraqi forces are facing.
(BEGIN VIDEOTAPE)
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Tires set ablaze by ISIS fighters still smolder in the morning chill as Iraqi
counterterrorism forces push forward. Clearing the last few militants remaining and explosives.
[17:20:00] DAMON (on camera): The chatter on the radio is just about how some residents mourn the forces that are further and a roadside bomb that
ISIS had left behind.
DAMON (voice-over): The road to Mosul is painstaking, etched with violence and agony. White flags flutter, some people hesitantly pier out from
behind closed doors, while those closer to the troops flash victory signs and smiles. Inside a mosque a soldier rips ISIS rules off the wall where
women and children shelter. They are relieved but wary. Haunted by the uncertainty that lingers. In her home, 6-year-old Meana takes labored
breaths. Her father says she was wounded by a mortar, presumably fired by ISIS that landed near them as they were fleeing towards the Iraqi troops.
DAMON (on camera): She's cold.
DAMON (voice-over): Her mother cradles her other children and hides her face. She's still afraid ISIS may return.
Down the main road that leads to Mosul past a sign for city center is the current frontline, the Mosul TV station satellite antenna.
DAMON (on camera): There's been quite a bit of rocket propelled grenade mortar and sniper fire, so the troops told us to make sure that we stay
close to the wall. But just on the other side of that berm, those buildings you see, they're in the Karama neighborhood of Mosul. It's a
mere 200 meters away. We come across hundreds from the area closest to the front trying to flee on foot. Two brothers push their grandmother, parents
carry their youngest, some smile despite the trek, but they don't know where to go.
Soldiers try to convince them to stay in empty homes further back from the fighting. There is no transportation to the camps. The walk would take
hours, and they need to be screened. One woman in tears says a mortar round landed on her house. She doesn't know if her husband and sons are
injured or dead. It's but a picture of human misery unfolding on an even greater scale. The only comfort, ISIS is gone. Arwa Damon, CNN, Iraq.
(END VIDEOTAPE)
QUEST: Extraordinary reporting from our CNN team in and outside Mosul.
In a report outlining corruption charges against South African president is calling on Jacob Zuma to appoint a special commission to investigate the
claims. Jacob Zuma says he wasn't given a fair chance to put his side to the investigation and the report accuses the president, top aides and
others of letting members of the Gupta family wield undue influence.
If you go back a year, South Africa had three finance ministers appointed in just one week. Pravin Gordham, of course is the current one and he
remains in position, David Van Rooyen and Gordhan. The report cite concerns over Nene's removal. His dismissal came after a deputy minister
notified him of an alleged attempt by the Gupta family to extract special favors.
In South Africa, many people took to the streets on Wednesday. There were huge protests in the capital of Pretoria that required the police to fire
stun grenades at demonstrators. In the capital's commercial district, tires were burned. Our David McKenzie is in South Africa.
(BEGIN VIDEOTAPE)
DAVID MCKENZIE, CNN CORRESPONDENT: The release of this report outlining serious allegations of corruption and cronyism at the highest level
including the president here in South Africa is a bombshell in South African politics. And it's been a day of high drama here on the streets of
the capital Pretoria with across-the-board protests. From opposition groups hitting the streets in sometimes violent scuffles with the police,
to civil society and business leaders pushing for President Jacob Zuma to step down.
What this report is really outlying is the president, his son, key ministers and others are involved they say in high levels of corruption and
dodgy dealings that has defrauded potentially, the South African people. And at the very least brought into question the ethics of the president.
This means that President Jacob Zuma whose office is there in the Union Buildings in Pretoria will be under even more pressure to resign given the
nature of this report and the explosive contents inside.
(END VIDEOTAPE)
[17:25:00] QUEST: David McKenzie joins me now from Johannesburg. David, over the years Jacob Zuma has had many allegations thrown at him.
Sometimes it seems as if it was time for him to go. Is this the moment?
MCKENZIE: It could be the moment. That's what people are hoping for in the opposition civil society. It was extraordinary today, Richard, to see
the captains of industry out there, publicly staking their claim to this push for Jacob Zuma to step down. The contents of this report are quite
extraordinary as well, Richard. Because it delves into the inner workings of allegations of corruption including within the presidency, key ministers
and something I didn't mention in that report, was the state-owned utility, Eskom.
A great deal of detail it goes into the relationship between the relationship of their CEO and the Gupta family. Those allegations will
have to be put forward, according to the public protector, with this judicial inquiry. But as you say, Zuma has gone through this before.
Whether he will step down, it's too early to say, but I don't think he's going to be pressured yet. He might try to kick the can down the road and
wait for this inquiry to continue and maybe delay the proceedings.
QUEST: David, the upshot is as long as he enjoys the support of the ANC and the political leaders within the ANC, he will not be forced to go.
MCKENZIE: That's right. But today, at least some of the senior ANC leadership was at those protests to support the move for the president to
step down. There is deep division in the ruling ANC party. Many of the urban areas like here in Gauteng where Johannesburg and Pretoria sits.
They saw big losses in the recent elections. So, you've got the legal front, then also the political front. If members of the ANC who are the
future of that party see that Jacob Zuma could continue to be a liability and could see them lose the next general election, they might jettison him
off. But you're absolutely right. I don't think calls from the opposition are going to do much for the president, because he's known as the Teflon
president. It's really within the ANC. If they say he's too much of a liability, they could push him out or force him behind the scenes to
resign.
QUEST: David McKenzie, thank you, sir. For staying up late in Johannesburg and joining us live in the program.
There was major developments, in a sense, on the report of disappearance of MH370. You've got analysis of debris which tells investigators more about
the moment the plane fell into the sea. You've also got analysis of debris which suggests where the plane may have come down. We'll report all that
in a moment.
(COMMERCIAL BREAK)
[17:30:24] QUEST: Hello, I'm Richard Quest. More QUEST MEANS BUSINESS in a moment. The chief executive of Enel tells me he's worried about the
divisions in the United States election season and about what's happening in Europe.
MH370, the latest reports offer new details on how it crashed. We may have got a scintilla of an idea of whether they're searching in the right
direction. Before that, this is CNN, and on this network the news always comes first.
Iraqi forces are within sight of the eastern suburbs of Mosul. Getting to the city has been a struggle and a half because of ISIS snipers' gunfire
and shelling. Officials say, the worst fighting likely still lies ahead.
New polls point to a tight race in the critical battleground states in the U.S. election. There's less than a week to go and Hillary Clinton has a
four-point margin in Pennsylvania. Donald Trump is topping his rival by five points in Arizona. When it comes to Florida, the two candidates are
only a couple points apart with Mrs. Clinton with a slight edge.
Antigovernment protests erupted in South Africa's capital, Pretoria, after a scathing report. President Jacob Zuma and members of his inner circle
are accused of cronyism, sketchy business deals and other misconduct. The report recommends that the commission investigate the allegations. The
ruling African National Congress says it will way it on Thursday.
At least 18 people are dead after a speed boat from Malaysia capsized off the coast of Indonesia. Nearly 100 migrants were on board. About 40 of
them were rescued, another 44 remain missing. The boat partly crashed into a reef after strong winds.
French authorities have evacuated the last set of unaccompanied minors from the Calais jungle, the migrant camp. More than 1600 of them were bused to
dozens of processing centers across France. From there U.K. officials will decide where to resettle them in the United Kingdom.
A new report has been released by the Australians on the disappearance of Malaysia airlines MH370. The report that says that the plane crashed into
the Indian Ocean at high speed, and it's pretty definitive in a manner suggesting that no one was in control. Basically, debunking the idea that
there was a pilot was trying to do a ditching on the water. Instead, the analysis of the so-called first frequency offset says it fell out of the
sky.
The report comes from the ATSB and says the analysis of part of the wing that washed ashore shows the flaps were not deployed. That's consistent
with a high-speed impact. Now, come and have a look at these simulations. What we learned today is that, not only do they believe that there was
nobody in the controls, these are the simulations, the potential ways in which the plane comes out of the air.
It comes down here, the plane. It then loses power from both engines after it runs out of petrol. And then by looking at the so-called BFO frequency,
they can work out whether it turned this way or so. You get an idea of how difficult and how tricky this is. Because some of them just around here,
but others come out here, and some of the scenarios go way back over to here. Peter Goelz is in Washington, former managing director of the NTSB.
Peter, good to see you, sir, on this. The clarity that we got from today's report gives us a bit of better information, but you tell me, sir, how much
more you think it tells us.
PETER GOELZ, FORMER MANAGING DIRECTOR, NTSB: Well, it's given us two important pieces of information. But it's not going to help us find a
wreckage yet. The first is, is the metallurgical study of the flaps really does confirm they were stowed. They were not deployed. This discussion of
the plane landing in the water in a gentle manner, that's why there were no other pieces floating out, has been debunked. The plane was out of
control. It crashed into the water.
[17:35:00] The second piece is the really extraordinary examination of this last handshake and the computer messages back that give us a really better
picture of how the plane was out of control. It may show us a smaller area of where it actually is.
QUEST: It's fascinating the way they did analyze even the rate of dissent and the kilohertz difference on the rate of decent from the burst offset.
And were able to tie it up. That does help.
GOELZ: It does indeed. The Australians really deserve some credit. They got into this. I don't think they knew the extent that they were going to
be involved. They have spent an enormous amount of resources and they have done extraordinary work.
QUEST: Peter, an area where you and I may have a different view -- we would never disagree, we might have a different view, the report, and it's
the third report or fourth report from the ATSB. But it doesn't in my view tell us nefarious or mechanical.
GOELZ: It does not. It leaves that an open question. We still -- there's still some lack of clarity of whether the pilot actually had been examining
flight paths into the South Indian Ocean. The Malaysians have said yes, perhaps, we don't know. It's a very difficult question to answer. I still
don't see how, if it was a decompression event or a fire, how the plane made the number of turns that it did without communicating. But I am still
open.
QUEST: All right now, finally, we know there's going to be a meeting between China, Malaysia and Australia. Because they said back in July of
this year, that once it's over, it's over. They're not closing the investigation, but clearly in the absence of further evidence they've got
nowhere else to loo look. Do you think this refined BFO data justifies them extending into the north because that's what it looks like, or further
north, extending the search?
GOELZ: I think you've come this far. If this new information, if there's confidence in it, and it appears as though there is, I think you have to
extend the search. You've got to keep going.
QUEST: One final question does occur to me, Peter. A lot of viewers talk to me about this when I'm traveling. Are we safer as a result of changes
made that the idea that planes can now be tracked wherever they are in the world? Could this happen again?
GOELZ: It could happen again. It really depends on which airline you're flying on. Some airlines have changed their procedures, so that they're
reporting back over open ocean on a much more frequent basis. But the sad fact is, this could still occur.
QUEST: Peter, good to have you, sir, thank you for putting it into perspective. Thank you.
GOELZ: Thank you.
QUEST: Russian fast food restaurant has cooked up a diatribe to Donald Trump. We're going to show it to you after the break.
(COMMERCIAL BREAK)
[17:40:30] QUEST: Chief executive of Enel, one of the world's largest electricity and gas companies says never mind the next president's energy
policies, he's more worried about the divisiveness and hatred that grips U.S. politics. Enel is an Italian company but it has a sizable presence
across the United States, Francesco Starace told me the country needs to heal.
(BEGIN VIDEOTAPE)
FRANCESCO STARACE, CEO, ENEL: I love this country a lot. I love it. It is sad to see the amount of divisiveness and hatred thrown in this campaign
this time. I hope it's over quickly and that this heals because I think that is the most worrisome thing I can observe coming from outside, this
divisiveness that exists in this very moment.
QUEST: Have you been concerned that any of the policies, particularly as they relate to energy -- let's just take, for example, Donald Trump's
policies, very much more drilling, very much for more coal. But if you look at secretary Clinton's policies, a greater emphasis on climate control
and other things. Are you concerned that either of these candidates are going to affect your business?
STARACE: Not really. I should say we have a presence in more than 20 states in the USA. Most of them are Republican states and business is
great, with renewable energy. We're talking about only renewable energy. So, I don't think this is really that important at this moment. I think
beyond what is being said during the campaign, things will unfold much more pragmatically, and today I think renewable energy and decarbonization is a
very pragmatic approach to energy in the future.
QUEST: You're watching obviously closely.
STARACE: Of course, I'm concerned more about the political climate rather than the policy on energy.
QUEST: On that political climate, let us go to your own back yard, to Europe. Now there you have a political climate where the disenfranchised
still feel they don't have a voice. You have a European Union that is, by the words of Angela Merkel, facing a crisis. And although Brexit doesn't
affect you directly with the U.K., it is going to affect your business.
STARACE: I think Brexit affects Europe in many ways. It's a big part of Europe that will go away from Europe. So, there is definitely a direct
impact.
QUEST: But as the chief executive, a major company in Europe, are you concerned at what is perceived to be an anti-European feeling. Whether
it's migrants, whether it's the EU in Brussels. The European populous is not with it at the moment.
STARACE: I think I'm concerned -- I'm not only concerned. I think Europe is to blame in some ways because it has distanced itself from what people
feel rather than what people should think. So, it's an emotional detachment that needs to be fixed.
QUEST: How do you do that? Because it seems to me that when there is opposition, first of all, you end up with a Brexit or you end up with a
Wallonia on the Canadian free trade agreement or you end up with a referendum in Italy, which no one knows quite how that's going to go. You
still have Merkel to face the electorate next year.
STARACE: I think the only way to go is to keep being Europeans and keep talking and confronting ourselves, not necessarily agreeing on everything,
but keep this dialogue going on. We should not break up and we should not give up. So, the only way is to do this, continuously talk and try to
converge on basic issues, immigration is a basic issue, for example. Energy policy is a basic issue where Europe has led the world for many
years. Today we still have a chance to do that again.
QUEST: You sound more hopeful than optimistic. Or rather maybe I should say you're traveling more in hope than optimism.
STARACE: I would say -- yes, you have good insight. I'm more hopeful than optimistic. Getting older it's difficult to remain optimistic for
everything and in particular on European matters, you need to have hope.
(END VIDEOTAPE)
[17:45:00] QUEST: European markets closed sharply on Wednesday, talking about hope over optimism. The largest losses were in Frankfurt, set DAX
off nearly 1.5 points, way down over concerns of tightening in the presidential election. Oil prices clearly show supply is not being reduced
any time soon.
On the U.S., I do need to remind you about the U.S. because the DOW which opened lower and then fell sharply after 2:00, that's when the Fed
announcement came out. It rallied a little bit when the Fed said it wasn't raising rates. But even so, still off 77 points, under 18,000.
Facebook shares are falling despite Facebook reporting stellar earnings after the bell. Apparently, according to the chief financial officer, this
is what's the fall in Facebook, off some 5 percent or percent. Investors are concerned over guidance on ad revenues and the suggestion that ad
revenues may be significantly lower in 2017 than they had been in this year. So, watching Facebook over the next 24 hours.
Russia has developed a new taste for American politics. Donald Trump's friendly attitude towards Russia has won him favor in Moscow. Now there's
a fast food chain that's created what it is calling the Trump wrap. CNN's Clare Sebastian steps in as QUEST MEANS BUSINESS food critic.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN INTERNATIONAL CORRESPONDENT: In a shopping mall, not far from the center of Moscow, a rather bizarre tribute to Donald Trump.
First a man dressed to look like Trump sings what they say is the candidate's favorite song. Then a promotional master class making the
limited-edition Trump wrap. It's all organized by this fast food restaurant. The question, of course, is why.
OLEG NAZAROV, ROLL'S RACE CAFE: I decided it would be very actual, very up to date just to invent such dish and dedicate it to Donald Trump who is
very popular in Russia.
SEBASTIAN: The Trump theme sandwich is made of beef, chicken, anchovies and a full head of mustard, extra turmeric added to get just the right
color. The chef apparently studied Trump's interviews and tried to match his favorites. There's a Hillary wrap, too, though clearly an
afterthought. Publicly, the Russian president says he will work with whichever candidate elected, be it Trump or Hillary Clinton.
But over the past few months Russian-state media has fed a sentiment favorable to Trump, not openly reporting the Republican nominee, but
focusing heavily on scandals around Clinton's campaign and Trump's much friendlier attitude towards Russia.
DONALD TRUMP, REPUBLICAN PRESIDENTIAL CANDIDATE: By the way, wouldn't it be nice if we got along with Russia? Wouldn't that be nice?
UNIDENTIFIED RUSSIAN MALE: Maybe together with Putin, the situation between Russian country and America normal.
SEBASTIAN: The Trump and Clinton-themed snacks are only on sale until November 8th, election day. If this group is anything to go by, perhaps
Russia has made its flavor presence very clear. Clare Sebastian, CNN, Moscow.
(END VIDEOTAPE)
QUEST: The "QUEST MEANS BUSINESS" newsletter, you shouldn't be surprised at the election jitters. We knew they would happen and we knew the market
would have volatility. You can subscribe at CNNmoney.com/quest.
There's a little tidbit for you. There is in there a direct link where you can email me directly and those regular viewers here at QUEST MEANS
BUSINESS know it will come direct to my blackberry. So, sign up and email me directly.
The Chicago Cubs hoping they finally break the curse and win their first world series in more than a hundred years. We'll be in Chicago after
you've had a moment to cogitate as you "MAKE, CREATE, INNOVATE".
[17:50:00] (COMMERCIAL BREAK)
QUEST: Theodore Roosevelt was in the White House when the Chicago Cubs won their last world series. The year was 1908, and the Cleveland Indians
haven't been in the world series with us since the administration of Harry Truman back in 1948. Tonight, the waiting will end for fans of one of
those teams.
We are around two hours away from the seventh and final game of the baseball's world series. Two teams with agonizing championship droughts,
most famously for the cubs who have been playing with the so-called curse of the Billy Goat over their heads. Now fans in Chicago went crazy when
the Cubs won last it in's game six to force tonight's winner-takes-all game, the tiebreaker in Cleveland.
Never mind trying to get in to the stadium. Cover charges at bars are running from $40 to more than a $1,000 for a game you can watch at home on
television for free. CNN's Ryan Young is outside Wrigley Field in Chicago. I'm guessing that neither love nor money would probably get you actually
into the stadium if you haven't got a ticket already.
RYAN YOUNG, CNN NATIONAL CORRESPONDENT: Well, you know, of course, we're here in Chicago, and I can tell you fans were willing to spend up to
$20,000 to get in for the last world series game. You understand the value in terms of for them what they want for this game. I'll show you a bar
just across the way here.
People will spend $100 a ticket just to get inside that bar. There are bars that have charged up to $250 to see this game. But to show you how
much passion there is in Chicago for this, I want to show you this living wall that's been started here. Fans have been coming for hours, grabbing
some chalk, walking up to the wall, putting their good wishes. We had a man who told us when his father was buried, he had a Cubs hat on and his
last tickets in his pocket. That's how passionate these fans are. How big is this night in terms of the Cubs winning the world series?
UNIDENTIFIED CUBS FAN: Biggest day in 108 years.
YOUNG: People in Chicago talk about this is a lifelong passion.
UNIDENTIFIED CUBS FAN: It is. Grandparents, parents. The younger generation we're all emotional, excited for everybody. As you can see by
the wall and what's about to happen here in Wrigley-ville.
YOUNG: Awesome, thank you, I appreciate it. What he talks about with the wall, this wraps all the way down. People have been showing up with
pictures of their parents' burials and putting them on the wall. This means so much to them. They
want a chance to win this championship.
Over the last 30, 40 years, they've won ten championships. I've been told this will be the biggest championship ever in the history of this city.
They want a taste of it, especially after a hundred years of not being able to go to the world series.
QUEST: Finally, and briefly, what a relief from the election for the them.
YOUNG: Without a doubt. As you walk down this way, as you see, you have all race, all creeds, no one is talking about the election, no one is
talking about Donald Trump or Hillary Clinton. People are just joining together. They are taking pictures and sharing these memories together. I
hear you say go Cubs. How long have you been a cubs fan?
UNIDENTIFIED CUBS FAN: Oh, my gosh, my whole life that I remember that there were cubs.
YOUNG: How exciting is tonight?
[17:55:00] UNIDENTIFIED CUBS FAN: I can't wrap my brain around it.
YOUNG: If they win tonight, will you lose it? Will you cry?
UNIDENTIFIED CUBS FAN: Oh, my gosh, I've got chills. I don't know which way to go. No, I don't know.
UNIDENTIFIED CUBS FAN: She'll cry.
YOUNG: How do you feel about this moment?
UNIDENTIFIED CUBS FAN: There aren't words. Look at everybody out here on the wall, out and excited this early. We're excited.
YOUNG: People who are not from Chicago might not understand this. Give me one word to tell everybody at home what this means tonight.
UNIDENTIFIED CUBS FAN: It's awesome.
YOUNG: Thank you. Quest you heard it, it is awesome, we have heard all day long from who cannot wait for this moment. Over 300,000 people crowded
the streets. We'll have to wait to see what happens.
QUEST: It is awesome, and you, sir, for your brilliant reporting get a bell. Thank you for joining us tonight. A Profitable Moment. Awesome.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment I will freely admit I know absolutely nothing about the game of baseball except roughly how it's played. Really
I couldn't tell you much more than that. Even I -- and certainly I don't know much about the curse of the Billy Goat for the Chicago cubs who
haven't won anything for 108 years. Even I can get excited by the report we just got from Chicago.
The under dogs who haven't got a trophy in years, now within grasp, having pulled it back to 3-3 with a tiebreaker game tonight. I promise you, I
have no idea how the game is played, who is playing or the significance of what they're playing for, the world series that only the U.S. plays in.
[18:00:00] It all figures, but I still think it's awesome. That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. I might even
watch the game. Whoever you're up to in the hours ahead, I hope it's profitable. We will back tomorrow.
END
