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Quest Means Business
U.S. Slaps New Sanctions on Russia; Ceasefire in Syria About to Begin; Trump Takes Credit for U.S. Startup Jobs; OneWeb to Add 3,000 Jobs in the U.S.; Japanese CEO Resigns After Employee Suicide; Hollywood Pays Tribute to Debbie Reynolds. Aired 4-5p ET
Aired December 29, 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] ELENI GIOKOS, CNN ANCHOR: The closing bell has rung on the trading session of the year. It is Thursday, December the 29th. Tonight,
the White House strikes back. President Obama slaps unprecedented sanctions on Russia over alleged cyber-attacks. There is just one hour to
go before a crucial cease fire begins in Syria. And Donald Trump says he has convinced a start up to create thousands of jobs in the United States.
The company's founder is live on this program later. I'm Eleni Giokos. This is QUEST MEANS BUSINESS.
Tonight, two major breaking news stories to bring you with one common thread. In Washington, President Obama has just rolled out major new
sanctions against Russia over alleged cyber-attacks on the United States. While in Syria, we're less than an hour away from a cease fire brokered by
Syria as well as Turkey. At the heart of both stories the Kremlin where Russian influence on the world is being felt from the computer servers of
the DNC to the war-torn streets of Aleppo. Will begin with the United States.
In the dwindling days of the Obama presidency the White House has issued an executive order with new and unprecedented sanctions against Russia. Six
individuals and five Russian entities, including the country's security service and its main intelligence agency are the target. It comes in
response to reports from U.S. intelligence that the Kremlin was behind hacks made to affect the U.S. presidential election. Standing by in
Washington we have Evan Perez to give us a few more details. Evan, thank you very much for joining us. Unprecedented moves but looking deeper into
the sanctions, it has nothing to do with the economy. These are about naming and shaming. Take us through what we heard today.
EVAN PEREZ, CNN JUSTICE CORRESPONDENT: That's right, it is about naming and shaming and it's really extraordinary if you look at the list of the
sanctions that the United States has announced today. We're talking about the four senior top officials of the GRU, which is the Russian Military
Intelligence Agency, which is one of the two agencies that breach the Democratic National Committee, as well as other Democratic Party
organizations in the past year. And which has played a center focus frankly for the U.S. intelligence agencies as they have been looking at who
was behind both the hacking of the Democratic Party organizations, as well as trying to disseminate that information to WikiLeaks and other websites
in a bid to embarrass the Hillary Clinton campaign and embarrass the Democrats. And in that way also help Donald Trump. That is one of the
more controversial aspects of this action. Because we expected Donald Trump is going to have a reaction in which he disputes, frankly, that this
had anything to do with this election. But that said, we now have these actions by Obama administration that goes not only sanctioning the FSB,
which is the other intelligence agency, the GRU. But also, expelling 35 diplomats that the United States says are actually spies. They are also
cutting off access to two compounds here in the United States. One in Maryland about an hour away from where I'm standing, and another one in New
York. These are both compounds that the United States is declaring to be essentially spy outposts.
What I think is important to keep in mind about all of these actions is the concern, and I think the proportional response here that the United States
was trying to take. The Obama administration has many concerns about making sure that this doesn't start a cyberwar, or perhaps even a shooting
war with the Russians. If you notice, we're talking sanctions, we're talking diplomats being expelled, these are things the United States and
Russia have done to each other over the decades during the Cold War. And I think that's the sphere under which the United States and the Obama
administration is trying to keep this action.
GIOKOS: Yes, and we heard earlier today before the sanctions were announced that there will be a response from Russia. That there could be a
tit-for-tat. But in the same breath we're also hearing there could be covert sanctions, ones that will not be announced. What do we know about
this? I mean, there are so many dynamics that are playing out at this point.
PEREZ: Right, and I think that's exactly the intention from the Obama administration, which is to say that there are things you're not to know
about. That the Russians aren't necessarily going to get any notice about that the United States may be doing. And here is where that gets more
complicated. Because I think part of the picture here, the bigger picture here, is if you talk to the Russians, I think the Russian government would
say that what they -- what has been happening, frankly, between the United States and Russia, is simply a response to activities that the Russians
believe the Americans have been doing for years. That the CIA, the NSA, other spy agencies of the United States have been meddling, have been
interfering with the internal affairs of the Russians.
[16:05:00] They certainly believe that during the last election there in Russia, that the United States State Department and the spy agencies were
funding some of the groups that were highly critical of Vladimir Putin. They believe whatever was happening in the past year was a proportional
response to what United States has been doing. Obviously, the United States would dispute all of that, but that's again part of the game, the
long game, that has been played between these two countries.
GIOKOS: Evan, thanks so much for that update. Evan Perez, live from Washington for us.
The Russian embassy in the U.K. has tweeted from its verified accounts slamming President Obama's move as cold war deja vu. They posted a picture
of a lame duck and said they'll be glad to see the last of this hapless administration. Joining us now, we have Bob Hormats, the former U.S.
Undersecretary for Economic Energy as well as agricultural affairs, to take us through some of the dynamics that are going to be playing out between
the U.S. and Russia in the few weeks to come. So, thank you very much for joining us. Great to have you on. I mean, looking at the sanctions, these
are not going to hurt the country economically, but we just heard from Evan the ins and outs. Would you make of these announcements?
BOB HORMATS, FORMER U.S. UNDERSECRETARY FOR ECONOMIC AFFAIRS: I think when you have 17 intelligence agencies telling you that the Russians were in
various ways responsible for this hacking. It would be impossible for the president to not do something. He's tried to keep this proportional. It's
not the Cold War. The Cold War was a standoff with a threat of military action on both sides. But this is a new kind of cyber warfare or cyber
skirmishing. It's really not even quite at the point of warfare or it can get to that point.
But it's essentially the United States taking action that will eliminate a number of people, 35 people from the Russian embassies in the U.S., various
parts of the U.S., and second, put a number of people and entities on the so-called designated national list, or special designated national list.
But it won't have a huge amount of impact.
GIOKOS: Do you think that Russia is going to do the same to the United States?
HORMATS: I think Russia will probably expel diplomats and I think they will go after some of our intelligence operatives if they can identify them
in Russia or various parts of the world. But I think the Russians will talk tough and probably act tough, but they will probably want to keep this
in proportion.
GIOKOS: you know, just a few weeks left of the Obama administration, but as you said, they had no choice, they had so much evidence. What do you
think President-elect Trump is going to do come January 20th?
HORMATS: He has to listen to the intelligence services. One of the things that is troubling to me is the fact that you need intelligence services in
order to deal with a lot of these issues. They're the one that's have done a lot of the work to figure out who has done the hacking. So, you can't
ignore them. And you can't ignore the fact that if these intelligence services are correct, and 17 are in unity on this issue, that there was
hacking and there was in attempt to interfere in some way with the American electoral process. This goes deep to the heart of American democracy. You
can't have this without some reaction on the part of the United States.
GIOKOS: While we know that the hack was towards the DNC, I mean do you think that it questions the integrity of the U.S. electoral system and the
way that is conducted. Does that create a concern for you?
HORMATS: I don't think it undermined the integrity of the electoral process in this country. There was really no evidence that ballot boxes
were meddled with by the Russians. But it was meant to cause confusion and was meant to undermine the credibility in a broader sense of saying that
you could not trust certain information. There was a lot of information that was hacked, and then released. It was mainly designed to cause
confusion, and a misunderstanding of various parties of what the other was doing. But it was not a decisive factor in the elections. Nonetheless,
you don't want to have foreign parties intervening, hacking, and interfering in the American electoral process. Because over a period of
time it could cause confusion. It could undermine credibility. And the Russians, if they have it here, could do it elsewhere to undermine
credibility of elections elsewhere.
GIOKOS: What's your prognosis of what U.S./Russian relationship will look like in the next four years.
HORMATS: In the next several weeks it will look very disrupted and disruptive. In the next several years, it depends. I think it is very
important for president Trump when he is inaugurated to take a look at this.
[16:10:00] He doesn't want under his presidency a lot of Russian intervention in the political process, either. At some point, he has to
sit down with Putin and say, all right, I haven't really said very much about this, and more or less he's dismissed this, but he can't have this go
on to have a major foreign power interfering, hacking, and trying to cause disruption in the American political process. He's got has to raise this
issue with Putin. Along with a lot of other issues. If he has such a good relationship with Putin, as he plans to have, then he has to go to Putin
and say, this is very important. The heart of our democracy cannot be penetrated by a foreign power. You can't do it and try to work out some
understandings, some rules of the game here.
GIOKOS: Bob Hormats, thank you for your time, much appreciated.
HORMATS: Thank you.
GIOKOS: Previous sanctions from the United States have tried to put pressure on Russian companies and the Russian economy. This year, it
hasn't worked. Moscow's MICEX has proved to be resilient, moving in lockstep with the Dow and Russians are even feeling the Trump bump. The
MICEX has soared nearly 10 percent since the U.S. election back in November. The recent surge in oil prices have certainly helped as well as
Donald Trump signals that he wants a friendlier relationship with Vladimir Putin. A spokesman for Putin says the Russian president will take
reciprocal actions against the U.S., but that he will not rush this. CNN's Matthew Chance is live now in Moscow for us. Matthew, tell us about the
reaction at this point in time. We heard earlier today that there will be similar response. What can we price in at this stage?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, well, I mean the exact concrete measures that the Kremlin is going to take, and it will
take some measures that he will identify yet. They have not spoken about them in any detail. But they said -- and they said this just a few minutes
ago, in a conference call we were on with the Kremlin, just after the sanctions were announced in the United States. That there's no alternative
to the principal of reciprocity. So, they're leaving very little doubt that when it comes to at least the 35 diplomats who been expelled from the
United States and declared persona non-grata.
They're going to do something similar. That would be normal diplomatic practice as far as the Russians are concerned to expel 35 American
diplomats. But, that would be the situation under normal circumstances. But of course, we're not in normal circumstances. This is obviously,
normally this would be a major deterioration in the relationship between Washington and Moscow. But we can't necessarily take that step and see it
in that way now. Because in just three weeks, Donald Trump, who is more sympathetic, it seems, to Russia is going to be taking up his position in
the White House, and the Kremlin said they're not in any rush to make any measures, to make any decisions right now.
Vladimir Putin will decide when the right time is to decide what to do. You almost get the impression they will sit this out and wait for Donald
Trump to take power in the United States before they launch into a reciprocal tit-for-tat expulsion situation with the United States that
could actually harm our relationship, that they hope can be built upon in the coming years.
GIOKOS: Exactly. These executive orders that were signed, and as quickly as they were signed, is as quickly as they can be undone as well when Trump
gets in office. You're saying that they probably will sit it out, but in the meantime, we've also heard of covert action taken. What is the stance
right now of the Russian government?
CHANCE: We've heard the possibility of covert action. Because of its nature, we haven't heard that any covert action has been taken yet. But
look, I just think is one possibility that the Russians may want to sit back a little bit and say, let's not take too much of a dramatic step in
response to this, because we could potentially have, they would think, a president of the United States about to take office that is much more
sympathetic to our cause.
And also, you mentioned an executive order. There have been many executive orders in terms of sanctions that President Obama has signed into force.
When it comes to sanctions on Russia over its annexation of Crimea for instance, back in 2014. Punishing Russian for that annexation, and for
their involvement in the conflict in Eastern Ukraine. At a stroke of a pen those sanctions can be lifted by Donald Trump if he chooses to do so. And
remember, his preferred choice for Secretary of State, Rex Tillerson, the former CEO of Exxon, has gone on the record as saying, he does not believe
that sanctions are a useful tool for American foreign policy, an effective tool I think is the word he used.
So, there's a body of thought, including Donald Trump and his potential Secretary of State, Rex Tillerson, that believe sanctions are not the right
way to go when it comes to Russia. So, we could see in the days, in the weeks, in the months ahead, this sanctions regime, which has been bolstered
today by the Obama administration, being diluted by Donald Trump.
[16:15:00] GIOKOS: All right, thank you very much Matthew, for that update.
The possibility of a lasting peace in Syria, the cease fire is set to begin in 45 minutes. It is not the first time an attempt to stop the bloodshed
has been made. World leaders and beleaguered Syrians are hoping it is the last.
(COMMERCIAL BREAK)
GIOKOS: Tonight, peace in Syria. Less than an hour from now, a cease fire is set to go into effect in the war-ravaged nation, hoping to bring an end
to 6 years of civil war and bloodshed that is left some 400,000-people dead. Russian President, Vladimir Putin announced the deal. Mr. Putin
says, Syrian president Assad will begin peace talks with rebels. Russia and Turkey will be the guarantors of the agreement. Turkey's President
says, it is imperative this becomes a lasting peace.
(BEGIN VIDEO CLIP)
RECEP TAYYIP ERDOGAN, PRESIDENT OF TURKEY (through translator): We have an opportunity to stop the bloodshed in Syria with a political solution. We
must not squander this chance. This is a historic chance. This window of opportunity should not be wasted.
(END VIDEO CLIP)
GIOKOS: This is the third time this year a cease fire has been attempted in Syria. The situation may never have been as dire. Aleppo lays in
ruins, virtually destroyed. This month the Syrian army seized the city after more than four years of rebel control. The humanitarian crisis
inside Syria worsens by the day. More than six million people have been displaced from their homes. And close to five million Syrians have escaped
their homeland. They're now scattered all over Europe, and the Middle East, helping to create the worst refugee crisis since the end of the
second world war. CNN's Hala Gorani, is now live for us in London. Hala, it's not a cease-fire that is pushed by the United Nations or the U.S. It
is one that Vladimir Putin has been pushing forward. Can he succeed?
HALA GORANI, CNN, CORRESPONDENT: Well, this could be a significant agreement, because Turkey is also part of all of this, and of course,
Turkey and Russia were never great friends. There was recent times, they're foreign ministers met in Moscow about 10 days ago, with the Iranian
foreign minister. They hammered out this deal. They're on opposing sides of the conflict, Turkey and Russia, and it seems as though after the
military victory in Eastern Aleppo for the government of president Assad, perhaps they thought this was the right time to come up with some sort of
cease fire deal.
The question is going to be, what kind of cease fire are we talking about here. ISIS is obviously excluded, that's not controversial, but then you
have other groups. Those associated with al-Qaeda, the Al-Nusra front, which rebranded itself recently. If there excluded as well, that means
military operations will continue. But also, the flip side is that they're not excluded.
[16:20:00] So, the Al-Nusra front is allowed to operate and maintain control of the territories it holds now. It means an al-Qaeda linked group
will have some level of control and a portion of Syria. Whatever way you look at it, this is not the end of the war, is the beginning of what might
be probably a very long process. In a few weeks' time the parties to this agreement will meet in Kazakhstan, and they will hammer out more details.
And then there are more plans for a transitional -- a period of political transition. Whether or not that includes Bashar al-Assad through, is also
an open question.
GIOKOS: Yes, and those peace talks that will take place, as you mentioned in Kazakhstan, bringing the parties to the table with so many different
interests, and now that we have seen the rebels losing a significant post in Aleppo, who's got the upper hand? And what do you think is going to
take the conversation forward so it can be turned it into action?
GORANI: I mean, obviously, militarily you have the government aided by not just Russia, Iranian fighters and militia. You have Hezbollah fighters as
well. The significant military victory of recent weeks, is obviously, Eastern Aleppo and that went to the government. So clearly, there is a
situation there where that side of the war has the upper hand.
That being said, I think there is a realization from all parties that a military resolution that would lead to the entirety of the country
remaining Bashar al-Assad's hands, is not going to happen. So, either you come up with some sort of solution that would allow for zones to be -- to
remain under the control of some rebel groups, perhaps a federal structure for Syria. That's one of the options. That potentially is what could be
in the works. But this is a long way away.
Because in the meantime you have millions and millions and millions who fled the country, millions more who've lost their lost their homes, who are
internally displaced, who might be concerned about coming back to areas, for instance East Aleppo that have been taken by the government. They
might be concerned, fear of reprisals, fear of sectarian violence as well. You a humanitarian disaster to deal with before any of this can really
happen. And in order for more extremist terrorist groups to be kept under control, and to be eliminated from having any influence, you need a
political resolution and that is a long way into the future.
GIOKOS: All right, Hala, thank you for that insight.
While the cease fire is welcome news for some, for others on the ground in Syria, the future remains uncertain and dangerous. There was a mixed
response to the announcement in one rebel held town. Let's take a look.
(BEGIN VIDEO CLIP)
AHMAD NAHEL, SYRIAN RESIDENT (through interpreter): We're are with the cease fire so the opposition can reorganize themselves after a difficult
time. We hope it will benefit the opposition to reorganize themselves and begin a new phase, God willing.
MOHAMAD MALEK, SYRIA RESIDENT (through interpreter): We are against the cease fire that has been signed by the factions. On the contrary, the
factions need to realign their ranks, so they can reenter Aleppo and continue with the revolution. We hope that the countries who have helped
the factions, I consider it to be a failure, helping the factions to fail in Aleppo. For now, with what is going on in Ghouta, they need to return
to be united in their ranks.
(END VIDEO CLIP)
GIOKOS: CNN contributor and senior editor at the "Daily Beast", Michael Weiss, joins us live. Michael, thank you for joining us in the studio
today. The U.S. didn't really have a big role to play in this, you know, and the United Nations, really weren't present in this. What do you think
is going to play out?
MICHAEL WEISS, CNN CONTRIBUTOR: This is a game of policy capture. The Russian intervention, which got under way in September 2015, was designed
to prop up the Assad regime and also forestall any creeping or eventually U.S. intervention in Syria against the regime. Obviously, the U.S. is
there fighting ISIS.
What you're hearing now, coming out of Moscow and Tehran and Damascus, is kind of a, a sort of new sites Picot of the 21st century, referring to the
agreement that divvied up the Middle East after World War I. Russia, Iran, and Syria are thinking about allowing this kind of carve up of the zones of
influence to be established throughout the country. Turkey his obviously got it sort of emerging protectorate in northern Syria, particularly in the
Aleppo suburbs. Russia is now in control of Aleppo city in conjunction with Iran and the so-called Alawite Corridor, from central Syria and
Damascus, all of the way to the coast.
And then of course there's the U.S. zone, which is being patrolled and bombarded on a daily basis, in eastern Syria, in the area known as the
Jezeera (ph). So, I can well see a kind of de facto partitioning of the country, but as you point out, fact that all the negotiations have gone
from Geneva to Astana. I mean, the symbolism of that, the U.S. is completely removed from any real decision making powers to how the war
plays out.
[16:25:00] GIOKOS: In all fairness, I mean, Vladimir Putin said that the situation is relatively fragile. Right? There is a big chance that this
might not work. We are hoping there could be a deal brokered.
WEISS: We're up to about a dozen cease-fires, so at the course of this conflict. And it's like every two months we have sort of a cease fire just
for form sake. They never hold. And one of the reasons they don't hold, is you know, Russia has said, we exclude from this agreement all designated
terror organizations. Depending on the day of the week and the mood of the Russian general staff, terrorists can include not just ISIS and Al-Qaeda
and certain jihadist groups, but civilians, bakeries, hospitals, free Syrian army fighters, particularly those backed by -- at least until
recently -- the CIA or the Pentagon. So, Russia doesn't really play by its own avowed rules when it comes to upholding the cease-fires.
GIOKOS: As we know, the cease-fire doesn't include the jihadist groups.
WEISS: Right.
GIOKOS: So, anything can play out a half an hour from now. But at the same time, we know hopefully there will be a deal on the table. Who do you
think is going to be leading that deal? Do you think it's going to be Russia? Do you think it'll be Vladimir Putin?
WEISS: Russia and Iran are essentially holding the cards. I mean, as Hala pointed out, their retaking eastern Aleppo in name was on behalf of the
Syrian government, but the units on the ground doing the heavy lifting were Hezbollah, Iraqi Shia militias that were accused by the United Nations of
massacring like 90 civilians including women and children, and according to the Wall Street journal, Russian special forces. Who have a kind of
invisible role to play on the ground. Obviously, Russian fighters jets are in the sky. This is not an Assad regime affair any longer. His security
has been outsourced to two countries. The two patron saints of Syria right now.
GIOKOS: Looking at the dynamics of who is supporting who, so, Russia behind Assad. You've got Turkey behind the rebels. The U.S. behind the
rebels, it almost seems like there is an international proxy war kind of playing out, right? But at the same time, we don't know what Trump is
going to do, for President-elect Trump is going to do come January 20.
WEISS: It is becoming clear based on his cabinet appointees and his statements going back to the campaign period, and now the transition. He
is not interested really in brokering a political solution, putting an end to the humanitarian crisis. He obviously not very fond of refugees.
Doesn't want to allowed them into the United States, because their sleeper jihadists according to him. He just wants to escalate the war against
ISIS. And to do that he is willing to lie down with Bashar al-Assad and Vladimir Putin, which is music to their ears frankly.
GIOKOS: Michael, thank you so much, appreciate it.
All right, still ahead, has Donald Trump really brought jobs back to the United States? We speak to the founder of OneWeb. It's a tech start up
with high hopes for Donald Trump's America.
(COMMERCIAL BREAK)
[16:30:00] GIOKOS: Hello, I'm Eleni Giokos. Coming up on the next half hour of QUEST MEANS BUSINESS. I'll be speaking live to the founder of
OneWeb after Donald Trump celebrated the company's pledge to bring thousands of jobs to the United States. And the CEO of one of Japan's
biggest companies has quit after the death of one of his junior employees.
First though, these are the top headline stories that were following for you on CNN this hour.
U.S. President, Barack Obama has now issues sanctions against Russia for its alleged election meddling. The actions include sanctioning six Russian
individuals and five Russian entities. In addition, 35 Russian diplomats have been order to leave the country. Russia now says it will take similar
steps in response to the expulsions.
After almost six years of devastating war, the most hopeful cease fire in Syria takes effect in less than 30 minutes from now. The Syrian government
and many rebel groups have agreed to lay down their weapons. Turkey and Russia will act as guarantors. And Russian President, Vladimir Putin says,
keeping the peace will not be easy.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, RUSSIAN PRESIDENT (through interpreter): The agreements reached are of course fragile. They need special attention and involvement
for their preservation and development. But nevertheless, this is a notable result of our joint work, efforts by the defense and foreign
ministries. Our partners in the region.
(END VIDEO CLIP)
GIOKOS: Prosecutors say the Berlin Christmas market rampage that killed 12 people could have been much worse, but for the automatic braking system on
the truck used in the attack. The system sensed impacts and applied the brakes. They also said the Tunisian man suspected of a link with the
attacker Anis Amri has been released. The investigation showed he could not have been Amri's contact.
The U.S. is aware of recent movements by ISIS leader Abu Bakr al-Baghdadi. That is according to an official who didn't offer any other details
including where he might be. There haven't been any signs of him for months. Unverified social media reports claim Baghadadi might have been
injured or killed. But several U.S. officials have said they are not accurate.
The CEO of telco company Sprint has come to the defense of Donald Trump. Insisting the company's announcement to add 5,000 U.S. jobs is new.
Speaking outside one of his Florida resorts on Wednesday, the President- elect claimed victory for bringing more jobs to America.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENT-ELECT: I was just called by the head people at Sprint, and they're going to be bringing 5,000 jobs back to the United
States. They're taking them from other countries. They're bringing them back to the United States, and Masa and some other people were very much
involved in that, I want to thank them. And also, OneWeb, a new company, is going to be hiring 3,000 people. So, that's very exciting.
(END VIDEO CLIP)
GIOKOS: Can Trump really take all the credit? It's a little complicated. Softbank has interest in both companies adding the jobs, Sprint and OneWeb.
Sprint's CEO has taken to Twitter this afternoon saying, "The 5,000 jobs are NEW jobs that Sprint is creating or bringing back to the U.S. Great
news for the country."
"Stop speculating. This has nothing to do with previously announced Sprint initiatives."
OneWeb in the meantime plans to create 3000 U.S. jobs in manufacturing as well as in engineering. Softbank is one of their biggest investors, along
with companies like Coca-Cola, as well as Virgin. The business builds satellites and it focuses on providing Internet and phone services around
the world. Now several high profiled executives make out the company's board. That includes Richard Branson and Airbus CEO, Tom Enders. We have
Greg Wyler, the executive chairman and founder of OneWeb, joining us now live from Palm Beach Gardens, Florida. Greg, thank you very much for
joining us. I mean, it's a question I ask a lot of CEOs. Why pick a specific country to create thousands of jobs? It's got to make economic
sense and it's got to be the right place. Is the United States the right place for you? Politics aside.
GREG WYLER, CHAIRMAN AND FOUNDER, ONEWEB: It is totally politics aside. We're building a global satellite system to bring internet to everyone.
Now we have raised with this latest round of 1.2 billion, so total raised is just over $1.7 billion. So, that's a lot of funding to deploy. And we
look around the world at almost every country of the world, at their capabilities, especially space based and Aeronautics capabilities. And the
United States has a fantastic infrastructure, a university system and workforce for this.
[16:35:00] So, the deployment here was natural. And then adding onto that what we're hearing about in terms of the new tax profile for the U.S. is
very positive. It all kind of comes together to be a great decision and a great place for OneWeb to be doing business.
GIOKOS: I mean, you mention the tax profile as quite important and we've heard those promises coming through from Donald Trump. Is that can be a
make or break for you down the line?
WYLER: I don't think it's make or break. On smaller decisions, it is. And on corporate decisions, but where are people deploring large-scale
assets. The middle scale, it's not a make or break. You're really looking at where you're going to find the best people and where you're going to
find the best capabilities.
GIOKOS: Would your decision to get 3000 jobs going here be different if Hillary Clinton were to have won?
WYLER: It probably wouldn't have been as much, just because before Masa had met with Donald Trump -- or President-elect Donald Trump -- we talked
about a smaller amount that he was investing. We had raised $500 million last year and we were planning to raise about $500 million this year. And
he was going to -- Softbank was planning to be part of that round. Since that meeting, even though our round was substantially oversubscribed, since
that meeting it boasted up to 1.2 billion, and it's been a very exciting time for us. So now we're fully funded to bring was the most important
part of this, is to build an Internet system, a satellite based Internet system to bring Internet to rural and emerging markets. Which is where all
of your news occurs. Is where there is a lack of economics, a lack of understanding and access to the world's information.
GIOKOS: Ok, so you're looking to employ 3000 people. Over what time frame? I mean, your startup. You still have quite a bit of work to do,
I'm assuming. Tell me about your timeframe and getting these people employed.
WYLER: We've got quite a few people already. We've been around for several years. And we've got through our companies like QUALCOMM, for
instance, which is a major investor and a partner of ours. We've already got hundreds and hundreds of people deployed working on our chipsets in our
technology. And so, over the next 4 to 5 years our vendors are going to be ramping up to production.
You may have heard that Ruag, it's a Swiss company that builds aero structures. Has actually now announced their moving to Florida to build --
they're putting a new factory in Florida to build satellite based structures for our systems. That announcement came out recently. So,
we're actually bringing jobs to the U.S. to help build the eco-system for a new facility up and Exploration Park.
GIOKOS: So you're building here, is that what I'm getting from you?
WYLER: We are building a new facility up and Exploration Park, over on NASA property, which will be the world's first volume satellite. It's the
first high volume production facility for satellites. We will build up to 3 satellites per day at this facility.
GIOKOS: Looking at the skill set, I mean, you're looking at engineers, you're looking at very high skills. Are there enough of the skilled people
here? Are you going to have to import some of those jobs, do you think? Bring people in from international markets?
WYLER: There is a pretty good base of skill set in the U.S., but certainly we could make it wider and make it more inviting for people. Because we
have an exciting but very narrowed field of detailed expertise. And sometimes that expertise has to come from overseas for sure. And were also
a global company and we have a lot of activities around the world. There's a lot of skills here, but we could certainly use more.
GIOKOS: You're committed to 3,000 jobs in the U.S., will you get your tax breaks or not you're still committed. That isn't a concern for you. What
is a concern for you, sir, in the next while? I mean, bringing your operation here is a big commitment. It's a big move, and it's going to
cost.
WYLER: We have worked with a lot of the supply base around the U.S. And the world. But we have a significant number of suppliers across the U.S.,
for instance in Arizona where they're building up new solar panels, aero structures for us. We're talking with a the lot of these suppliers and
they're very excited about receiving our contracts, which we're releasing some and releasing more as go for the construction of the satellites. So,
we've got a very good supply base here in the U.S. and around the world.
GIOKOS: So, Greg, just very quickly. Are you filling optimistic about what the next four years, in terms of the U.S. economy is going to look
like for you as a start up in the United States? Are you optimistic?
WYLER: If the market is an indication, then yes. I am optimistic about where we're going. I'm optimistic about what we can bring to the table,
and what OneWeb is doing. Really, what we're going to enable is more economics around the world and emerging markets. Over half the world is
unconnected.
GIOKOS: Thank you, sir. Much appreciated for your time. Greg Wyler there from OneWeb.
One place where Trump is already creating jobs, his White House.
[16:40:00] Which has been hiring Goldman Sachs alumni. Since the election, Goldman shares have surged more than 30 percent. Former employees are
taking top cabinet positions and investors are salivating over the promise of deregulation. As Claire Sebastian explains, it's a reversal of fortune
for the Wall Street giants.
(BEGIN VIDEOTAPE)
TRUMP CAMPAIGN, YOUTUBE: The economic decisions that have robbed our working-class.
CLAIRE SEBASTIAN, CNNMONEY CORRESPONDENT (voice-over): The closing message of Donald Trump's campaign.
TRUMP CAMPAIGN, YOUTUBE: Put that money into the pockets of a handful of large corporations.
SEBASTIAN: The shot of Goldman Sachs CEO, Lloyd Blankfein, singling out the firm as a symbol of American inequality. And yet in the days and weeks
that followed, Goldman was singled out for a different reason. Gary Cohen, name chairman of the National Economic Council, Steve Bannon, chief White
House strategists, and Stephen Mnuchin, Treasury Secretary.
SEBASTIAN (on camera): All three going down the well-trodden and path from Goldman into government. In fact, Stephen Mnuchin will be the third
Treasury Secretary from Goldman in the last 20 years.
SEBASTIAN (voice-over): Mnuchin has echoed Trump's promise to roll back Dodd/Frank, the post crisis banker format.
STEPHEN MNUCHIN, FORMER GOLDMAN SACHS PARTNER AND SENIOR MANAGER AND HEDGE FUND INVESTOR: Making sure we scale back regulation.
SEBASTIAN: Dodd/Frank forced banks to stop certain risky trading practices and keep more cash in reserve. Of course, Trump's soon to be top economic
advisor lived through the financial crisis.
RANA FAROOHAR, CNN GLOBAL ECONOMIC ANALYST: Dodd/Frank did go some way toward preventing those institutions from doing the kind of very
profitable, risky trading that blew up the system in '08. They want to get back into that game.
GLENN HUBBARD, FORMER CHAIRMAN, COUNCIL OF ECONOMIC ADVISORS, GEORGE W. BUSH: Working with president Bush was a real joy.
Glenn Hubbard is the former chairman of George W. Bush's council of economic advisors. He also has close ties to the financial industry
including Goldman Sachs. He said Trump didn't appoint former bankers because of what they think.
HUBBARD: To me it's about execution. I take very seriously the President- elect's charge that he wants to change the growth trajectory from the Obama administration. I think that's a terrific goal.
SEBASTIAN: Goldman Sachs told us it has encouraged employees to give back to the community and is proud that many have gone on to serve their
country.
HUBBARD: Goldman Sachs as a firm, always has put a premium on people being very active broadly in business and public policy. I think it is a little
bit of the ethos of the firm.
SEBASTIAN: The ethos of a firm.
TRUMP: Politicians meet in secret with the big banks.
SEBASTIAN: Still far removed from Trump's anti-establishment message. Claire Sebastian, CNNMoney, New York.
(END VIDEOTAPE)
GIOKOS: No matter where you work, how much overtime is too much? Coming up, a Japanese CEO steps down after an employee was worked so hard she took
her own life. Stay with us.
(COMMERCIAL BREAK)
[16:45:00] GIOKOS: The CEO of one of the world's biggest advertising companies has resigned over the suicide of one his employees. Tadashi Ishi
is the head of Japanese firm Dentsu, the company has been under heavy scrutiny after investigators ruled the employee was overworked and the
punishing overtime led to her death.
So, Cary Cooper joins me from Los Angeles, he's a professor of psychology and health at the University of Manchester, thank you, sir, for joining us.
Death by work, what a sad story where we are seeing someone having worked overtime, pressurized by perhaps the culture of working as hard as
possible, and putting the company first, what are you making of the story right now? Is it a concern that incidents like this could rise?
CARY COOPER, PROFESSOR, PSYCHOLOGY AND HEALTH, UNIVERSITY OF MANCHESTER: It has been around Japan a long time, in fact they have a word called
karoshi which is death by overwork. And what the Japanese do it has been happening for decades is they feel committed to their organization, they
come early, they stay late, and it is about loyalty. I have a be a loyal employee. It's not about the overwork, it is not about their workload, it
is about showing they're committed to the organization.
The real worry that I have is what you're seeing in north America, in most of the developed world and certainly in western Europe is that the sickness
absence rates due to stress are massive now. They are really on the increase. And long
working hours is partly responsible for that. That is not driven by loyalty to the organization, it is driven by job security. People feel
very job insecure, and as a consequence of that, they're coming early and their staying late. They want to show face time to their employers. They
feel that will protect them, that is also likely to get them ill.
GIOKOS: Is it about being overloaded with deadlines that you can't meet so much work? Or is it self-inflicted? Is it a combination of both perhaps?
COOPER: It is both, we have fewer people as a result of a recession in both the public and private sector. They are doing more work, feeling more
job insecurity. But the thing that I feel is the biggest driver is the insecurity driver not the overload. They are overloaded, heavier
deadlines, techno stress in the sense they are being overloaded by emails and by all sorts of technology. But I think the big driver is showing face
time. They feel they should come early, stay late, to show the employer they are really committed so they're not the second or third tranche of
people made redundant as we say in England.
GIOKOS: What do you think the CEO of Dentsu, the message he is sending by resigning, should be this be a message to the CEOs to take closer note of
what their staff are going through?
COOPER: Yes, a lot of them are being sued for a long working hours' culture. For stress by employees, and indeed that is happening in many
countries in western Europe. So, I think they better take this seriously. This is something damaging people's health, the long working hours is bad
for productivity and it is bad for working families.
GIOKOS: Thank you for joining us. We'll be back in just a moment, first a highlight from "MAKE, CREATE, INNOVATE."
[16:50:00] (COMMERCIAL BREAK)
GIOKOS: Bright, fast and flashy, Ferraris are unmistakable. But criminal carmakers might have you confused from sawn off serial numbers, to
counterfeit chassis those hot wheels worth the heft price tag, here is Nina dos Santos with more.
(BEGIN VIDEOTAPE)
NINA DOS SANTOS, CNN MONEY EDITOR: Red and yellow. Ferraris like this are unmistakable. And their uniqueness has made then desirable for decades.
The history and the high price tag, sometimes come hidden surprises under the hood.
JOE MACARI, DIRECTOR, MACARI FERRARI: This is an engine when we send it back to the factory, they worked out from the internal number and a
multitude of other numbers et cetera. That this actually wasn't what it purported to be.
DOS SANTOS: Those serial numbers sawn off engines to chassis rebuilt from crashed cars and entire body work swapped. Criminals have found elaborate
ways of making money in a classic car market that is up 500 percent in ten years, largely by altering models to make them seem rarer.
At this London workshop the owner says he has seen it all. What was the worst thing you have seen someone try to sell you that turned out to be a
fake?
MACARI: There was a 250-short wheel base car from Italy, I think it was one of three, and the car had been destroyed, all that was left was a few
bits of chassis, and it was the third time the car had been offered but it wasn't even the same car that had been offered the time before.
DOS SANTOS: To protect their pedigree supercar makers have now began to offer owner's authentication services. Turn dealers like these into
detectives.
Do you have to break this kind of news to some of your customers to say, well, actually, something inside your vehicle in not what you thought it
was? And what is their response?
MACARI: It is not an easy conversation to have and unfortunately, we've had to have it more times than we would like. Some are pretty chilled
about it, other are adamant that it could not possibly be their car that would have something wrong with it.
DOS SANTOS: Gradually, these graceful gas guzzlers are being checked for signs of tampering and fixed, keeping them market worthy for many more
years to come. Nina dos Santos CNN Money, London.
(END VIDEOTAPE)
GIOKOS: So, Hollywood lost a legend from the glamorous '50s and '60s. Debbie Reynold was 84 years old. Her death would be sad news at any time
the shock is that Reynolds passed away the day after her daughter, actress Carrie Fisher. CNN's Paul
Vercammen looks back at her life and career.
(BEGIN VIDEOTAPE)
PAUL VERCAMMEN, CNN CORRESPONDENT: Singer, dancer, actress Debbie Reynolds was a Hollywood triple threat and America's sweet heart. Her film career
began at the age of 16 after being spotted in a beauty pageant. Her star launched just a few later after a spirited performance opposite Gene Kelly
and Donald O'Connor in 1952's "Singing in the Rain".
DEBBIE REYNOLDS, ACTRESS: They picked me to be in "Singing in the Rain" and then they locked me in a big old studio, and for three months I had
five teachers. One for tap, ballet, jazz, modern. And I just worked, worked, worked,
worked until I just fell apart.
VERCAMMEN: Other notable roles followed including 1957's "Tammy and the Bachelor" which resulted in her number one hit song "Tammy." She played
opposite Gregory Peck in "How the West Was Won" and her performance in the "Unsinkable Molly Brown" earned her an Oscar nomination.
Beloved on screen, but at times her life off screen overshadowed her success. She had two children with her first husband crooner, Eddie
Fisher, producer Todd Fisher and actress and author Carrie Fisher who decide just one day before her mother.
[16:55:00] In 1959, the marriage ended in a highly-publicized divorce when Fisher left Reynolds to marry her close friend, Elizabeth Taylor. A
painful betrayal, Reynolds was able to joke about the scandal years later.
REYNOLDS: I was a girl scout. I was a simple little girl, and that's what I was, and he fell madly in love with Elizabeth. Now I understand so many
years later, and it is in the past.
VERCAMMEN: Her second and third marriages also ended in divorce each time causing her financial pain. However, she been quietly collecting Hollywood
memorabilia over the years that would prove to be a wise investment. In 2011 she sold Marilyn Monroe's white subway dress at an auction for $4.6
million. She also never quit performing though she stepped away from film, for much of her career Reynolds continued to entertain on Broadway stages
and in Las Vegas night clubs. Her wide array of work was recognized in 2015 when the Screen Actors Guild honored Reynolds with a lifetime
achievement award.
Reynolds said she loved every minute she spent in show business in her 2013 autobiography "Unsinkable." She credited the love she had for her friends
and family for her personal and professional resiliency. And it was that spark and sense of humor along her talent that Reynolds will be remembered
for.
(END VIDEOTAPE)
GIOKOS: What a loss of two wonderful women over two days. Well, that is it for QUEST MEANS BUSINESS. Tomorrow is the last trading day of the year.
Don't miss it, we'll be bringing you the markets as they close tomorrow. I'm Eleni Giokos in New York. I'll see you tomorrow, cheers.
END
