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Quest Means Business
Rex Tillerson Confirmed as U.S. Sec'y of State; Trump to Republicans Invoke Nuclear Option for Gorsuch; Trump Nominates Gorsuch for Supreme Court; India Tech Stocks Slide on U.S. Travel Ban; White House Puts Iran "On Notice"; EU Inks Deal to End Roaming Charges; Etihad CEO Has No Issues with Open Skies Treaty.
Aired February 01, 2017 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] RICHARD QUEST, CNN ANCHOR: Closing bell. It's a nonprofit that teaches the love of mathematics. Dow Jones up. I have a good feeling when
it comes to doing the gavel. Good grief. Wouldn't want to meet her on a dark night. It's Wednesday, it's the 1st of February. Tonight, the oil
man cometh. Rex Tillerson is confirmed as U.S. Secretary of State. We'll talk about what that means.
Donald Trump is supremely confident in his pick for the U.S. Supreme Court.
And free to roam. Europe finally cuts the calls across the continent but is the cut big enough? How old is that phone?
I'm Richard Quest live in the world's financial capital where I mean business.
Good evening. You're most welcome. The United States has a new top diplomat by a vote of 56-43. The U.S. senate within the last hour has
confirmed the former chief exec of Exxon, until to be the new secretary of state. He joins an administration trying to turn years of foreign policy
precedent on Russia, on trade and on immigration. Rex Tillerson himself said he doesn't agree with the president on some key issues and is already
facing dissent from within diplomatic ranks. 900 state department officials have signed a dissent memo opposing the president's travel ban.
We go to Capitol Hill. So, I'm just looking at those numbers, 56-43. Now, you know, that's virtually party lines with a few either way.
TOM LOBIANCO, CNN POLITICAL REPORTER: Absolutely. You know this kind of speaks to the greater dynamic here inside the U.S. Capitol that we're
seeing right now with very narrow votes, not a lot of room to maneuver in there. Remember that the numbers are 52 Republicans and 48 Democrats. And
if they really want to get into it, the Democrats could filibuster, try to filibuster a nominee with just 40 members, 41 members. Now they haven't
done that in this case and they haven't done it in any other nominee cases but that goes to show how tepid things are around here.
QUEST: So, I assume now that Rex Tillerson has to be sworn in by the vice president at some particular point. Was there real animosity to him.
Nobody questions his ability. Does it always come back to this idea of he was the former CEO of an oil company and the relationship to Russia?
LOBIANCO: Russia. Completely. Absolutely. That came up all the time. Democrats were really hoping to kind of use that to leverage away some
Republicans. Remember that this is not the type of thing where Republicans are automatically unified on this. Senator John McCain the former 2008
nominee for president, the Republican nominee for president raise some major concerns. We had Senator Lindsay Graham a staunch Republican raise
some concerns. We had Senator Marco Rubio. I mean these are not moderates. These are not people who are flagging one way or the other.
These are pretty staunch conservatives that we're talking about. In tends they ended up coming back into fold and that speaks to the bigger dynamic.
This was a very big battle that Trump just won.
QUEST: But let's just talk about in the committee stage with the treasury secretary and there the Democrats didn't bother to turn up to avoid a
quorum, all that happened is the Republicans changed the rules for the purposes of that vote. So, what was we're seeing is high stakes
maneuvering, tom, but to no effect.
LOBIANCO: Not yet. And if we're talking about the supreme court as well, of course, that is a big question looking at the high court nominee. This
brinksmanship we're seeing playing out not showing up, Democrats won't show up to a committee vote and try to stall the process and again today what
happened the Republicans who have the majority on that committee said OK you want to try that, then we're going to overrule the rules and get to the
nominees out that way. So, you see a lot of brinksmanship like that. This in a lot of ways a proxy for what we could see with the supreme court
nominee. This is incredibly important.
QUEST: Good to see you. Thank you. Look forward to you more often on the program.
[16:05:00] Now on the supreme court as Tom was talking about and the lobbying has begun as Gorsuch would have the power to carry on decades
after Trump is out of office. If you think Ruth Ginsberg is 83 and Kennedy is 80 this man has a good 30 odd years on the bench. But that road to the
bench runs to the senate and that's where Judge Gorsuch went to lobby the confirmation votes. Republicans were urged to put in the nuclear option if
needed that would prevent a Democratic filibuster.
The president looked to outside groups for support. Now sitting at the table, Grover
Norquist, a small government activist. And just to the left of the president, Wayne Lapierre from the national rifle association. The
president told them judge the judge as the perfect man for the job.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I don't know how anyone can oppose him at all but it really has been a beautiful thing to see. He is
just a spectacular man. You tell me. Leonard, how would they go about opposing him? He's perfect in almost every way.
(END VIDEO CLIP)
QUEST: So, Judge Neil Gorsuch, a life time appointment and the youngest nominee in a quarter of a century. But what about his legal scholarship?
Well, he went to Oxford. He went to Harvard. As a judge, he has ruled in favor of businesses that raised religious objections to providing
contraception to women, and he's also questioned the power of government agencies to decide how to interpret ambiguous laws. An originalist not a
strict constructionist. The president was looking for a follow on to the conservative icon Antonin Scalia. In the last year since the death of
Justice Scalia, the court has been operating with eight justices. What this means is when they are tied 4-4, the lower court ruling stands.
That's happened a few times over the last year.
But as you can see, you've got those that are more liberal, including Sotomayor, Kagan and those that are more conservative, extremely
conservative like Justice Thomas, chief justice and Justice Kennedy. Justice Kennedy goes both ways. On the one hand, he's known as the swing
vote. However, Judge Neil Gorsuch's advocate would be the split as a result. The court is facing key decision, transgender rights is going to
come up. Worker's rights. Separation of church and state. And patent law. And the justices could hear challenges to travel ban introduced just
this week.
(BEGIN VIDEO CLIP)
NEIL GORSUCH, SUPREME COURT JUSTICE: It is the role of judges to apply not alter the work of the people's representatives. A judge who likes every
outcome he reaches is very likely a bad judge. Stretching for results he prefers rather than those the law demands.
(END VIDEO CLIP)
QUEST: So, we need a legal understanding with all these justices and all these issues. Paul Callan here. Good to see you.
PAUL CALLAN, CNN LEGAL ANALYST: Good to see you sir.
QUEST: First of all, how conservative is this man?
CALLAN: I would say that he's very conservative. As a matter of fact, he's replacing Scalia who was known really as maybe the most conservative
person on the bench and a lot of people think he might be more conservative than Scalia.
QUEST: By conservative, a small c, we're talking about likely to vote with big business, likely to vote right-wing or more right-wing agenda,
contraception, gay rights, worker rights.
CALLAN: That's not how conservatives would define it. Conservatives would say that a judge like Gorsuch calls balls and strikes. All he does is
tread law, strictly, the wording of the law and applies it as opposed to try to legislate from the bench on social questions. That's how
conservatives view the kind of judge that Gorsuch is.
QUEST: We need to quickly talk about the issue of how the Democrats can prevent delay and what we mean by this thing, the nuclear option.
[16:10:00] CALLAN: In the United States Senate, it's an exclusive club, they like to call themselves the most, you know, the most important and
deliberative body in the world. They love to talk. And they have a rule that debate can go on endlessly unless there's a vote for cloture. But
that vote for cloture requires a supermajority, 60 votes and the Republicans only have 52 senators. So, by way of debating endlessly or
what we sometimes call a filibuster the Democrats could block the nomination even though they don't have a majority.
QUEST: Why would they do it in this case? Obviously, obviously, there is still a lot of rancor, the Republicans refusal to even hold hearings of
president Obama's pick just before the last election. But at the end of the day, an election has been held, the president has won, he's entitled to
his man or woman, and nobody doubts that this judge is imminently legally qualified.
CALLAN: He's very qualified. Columbia undergrad. Harvard law school. A doctorate from oxford. He clerked for two supreme court justices, and he's
written two books. He's a brilliant guy. He's imminently qualified. Why do they want to block him? You hit on when it you talked about his age.
He's loin 49 years old. Key be on the court for another 30 years and if, in fact, he is as conservative as many people think, he'll be helping to
dictate policy, maybe for the next two decades.
QUEST: Don't the Democrats have a problem when he was appointed to appeals court he was voted, confirmed I should say, forgive me unanimously.
CALLAN: Well they do. If we're applying logic to the situation. But tinting thing is that this gets so bitter that sometimes when they see a
really good dangerous person coming up through the system they don't let him get on the appellate court or let him get on the district court because
he might get to the supreme court at a very young age. His age is the thing that's going disturb Democrats more than anything else. Why not
force Trump to nominate somebody who is 59 or 65, even a conservative at that age would have less influence.
QUEST: Is he going to get it?
CALLAN: I think he'll get it. I think they will vote the nuclear option and the Republicans will vote him in.
QUEST: Great to have you. I should pay the legal rates.
CALLAN: This will cost you big time. Yes.
QUEST: Talking of wallets. In the past few minutes, Facebook beat expectation. Revenue of 8.8 billion, expected 8.5 billion. We want to
look at engagement, new users, how long they spend. Well get some analysis on all that as we continue on "QUEST MEANS BUSINESS".
[16:15:00] (COMMERCIAL BREAK)
QUEST: Welcome back. In the past few minutes Facebook has posted its quarterly results. The headline is it's beaten expectation at least on the
headline number expected 8.5 billion it's 8.8 billion. Paul La Monica is here.
PAUL LA MONICA, CNN CORRESPONDENT: I'm showing you 1.23 billion daily users. Phenomenal. 1.15 billion mobile. The growth is stunning. 18
percent year-over-year. For overall users and mobile up 23 percent. People excited. Monthly users it's nearly 2 billion, 1.86 billion overall,
1.74 billion mobile. The growth --
QUEST: So, the growth is there. Obviously once we get into more detail numbers we'll look at whether the mature markets the U.S., Europe, whether
that's held up because clearly like pyramid selling you can always go into emerging markets more and more. It's whether or not mature markets are
holding up, which has been the big issue.
LA MONICA: Right. The key thing with Facebook, obviously, they have gone to mobile. They had almost no bill presence when they went public a few
years ago, and now everybody is looking at Facebook on their phone. It's not just Facebook it's Instagram. They are starting to do more finally in
virtual reality to make some money. So, the fact Facebook has these different brands not just the core platform that keeps users engaged. They
don't necessarily have to keep adding new users.
QUEST: Maybe as a testament to all of this we're looking at our devices of one description or another to gasoline more information. Thank you. The
shares are up 4 percent in after-hours trading. 4.5 percent at 136. So, the idea that somehow -- I mean the other thing about Facebook it's the way
it's integrating itself into other sites. You log in via Facebook. Facebook is now the conduit to which you'll get the news.
LA MONICA: Here's a perfect example. Facebook live is now such a significant thing for that company where people are broadcasting live
streams. A couple of months when I first approached doing Facebook live from the New York stock exchange from their floor they were skittish. They
were not sure it was a thing. Now they clearly get it. When the Dow hit it 20,000 I was there doing a Facebook live that day about how the market
was at a record high. This had no issue with me whatsoever from the floor on Facebook.
QUEST: Good to see you, sir.
Stay with technology. Apple chief executive Tim Cook says he's contacting very senior people at the White House and I'm pretty certain it's not
cordial communications. He wants the travel ban revoked. Mr. Cook speaking to the "Wall Street Journal" said it's affecting hundreds of
Apple's employees and now Apple is possibly the next tech giant to take legal action. Whether or not on its own or joining action of Amazon and
Expedia which is joining the state of Washington suit against the federal government. Jimmy Wells is the co-founder of Expedia. He joins me -- of
Wikipedia. Forgive me. You join me from London. Look, this is getting very messy very quickly. The word from the administration this isn't being
changed. I'm not sure what these tech companies like yourselves and others hope to achieve.
JIMMY WELLS, CO-FOUNDER, WIKIPEDIA: Well, I mean for us this is about our fundamental mission. I mean we're a charity and we have a goal of sharing
information globally. We have all the time we have people coming to our office to visit in San Francisco from all around the world. We have
employees from many different countries working at our central headquarters there. This is, you know, for us it's really incredibly important.
QUEST: When we look at the litigation that's taken place, Wikipedia and Amazon and it looks as if Apple is also going to be involved in this, do
you believe that this is the right avenue within which to challenge this, or would you go for a more grassroots?
WELLS: Well, I'm not an expert on the law. But I would say that to the extent that what the government is doing is illegal, then the course is
absolutely the right venue. In terms of grassroots this is an effort that needs to involve educating the public.
[16:20:00] I find it very trying to have a president who lies on a daily basis when you're trying to bring people facts. And I think as people
begin to learn and understand more we can begin to have a more sensible discussion and debate about what is admittedly a very thorny question on
immigration.
QUEST: If I may push a bit on this. The overnight and the recent polls seem to suggest, I won't say a majority, but many over 40 percent of
Americans that have been polled on this, do support what the president has done. Now, does this speak to your idea of greater information and
education?
WELLS: It absolutely does. I mean, of course, 40 percent is not a majority, it's a minority, but additionally I think what we really need to
do is to say look, sort of the ongoing rhetoric and anger and a lot of falsehoods flying around that's not what we want. We want a thoughtful,
reflective deliberation about the policy. That's going to take some time but I do encourage everybody to say hey, go and get informed, like learn
more about it. Don't just respond 0 a gut feeling based on some random stuff that the president tweeted.
QUEST: I fully accept your point and please do not take my next question being in any way suggesting duplicity. Me think you protest too much. It
has to do with the H1B visas in many cases.
WELLS: It may well. I can't speak for those companies. But those hb1 visas has been crucial to the competitiveness of America. If you want to
make America great you have to admit and understand the dominance of our tech industry is built in very large part on having an open society and
open economy, welcoming the best talent from around the world. You don't get there by fomenting hate and anger and fear against people who might
want to come to America and become entrepreneurs and become a part of the American dream.
QUEST: Thank you.
We were talking about the H1B. India tech stocks are sliding over fears that President Trump could change more of the rules. Our New Delhi bureau
chief Ravi Agrawal has more on the B1B
RAVI AGRAWAL, CNN, NEW DELHI BUREAU CHIEF: Tech stocks in India continue to fall over worries that change in U.S. immigration laws could hit their
bottom lines. Now the United States has a visa program for highly skilled workers that is known as the H1B visa. 85,000 of these visas are issued
annually. By one estimate 70 percent go to workers from India. On Tuesday, the news that as many as three bills have been introduced in the
U.S. congress limiting the H1b program sent India tech stocks tumbling. Combined the top five tech companies like those of emphasis lost about $4
billion of value in the market. Those falls continued on Wednesday. Now, to be clear, no laws have been passed. Neither has an executive order.
But the U.S. is worth about $65 billion to India's tech industry every year. A government spokesman told CNN that New Delhi has conveyed its
interest and concerns to the White House at quote senior levels. Richard.
QUEST: Good to see you, sir. That's the story from India.
The head of the International Organization for Migration says his group's organization is tracking the fallout of the travel ban. William Lacy Swing
joined me earlier and pointed out part of the problem how refugees what jimmy wells was saying how refugees are being viewed across the western
world.
(BEGIN VIDEOTAPE)
WILLIAM LACY SWING, DIRECTOR GENERAL, INTERNATIONAL ORGANIZATION FOR MIGRATION: We're hoping that this will be short lived as they do their
assessment of the security. And we have never questioned the prerogative of states to decide on who should come in and who shouldn't and to look at
the security. But much of what is now being put forward by many governments is sort of unrelated to security because, for example, the 3.2
million refugees who come in the last 25 years, last 42 years to the states since 1975 there's not one instance of any of them having ever committed a
terror act in the United States. So, we need to look at it from the true security perspective and not just from turning the people who are fleeing
terror into being suspected of terrorism.
QUEST: With that in mind, I mean away from the U.S., obviously, the U.S. has introduced policies but across the European Union, this right-wing, for
want of a better phrase backlash which even president tusk referred to in his letter ahead of the Malta summit, the refugee situation is seen as a
crisis, one that could blow up once again within the European Union.
[16:25:00] SWING: Absolutely, right. I think we're dealing a little bit here with what I would call refugee amnesia. We forgotten that this
organization that I represent was founded in 1951, precisely to bring Europeans ravaged by the second world war to safe shores and new lives and
we need to come back to that perspective.
QUEST: So, let's talk about the Malta summit. What do you want out of the Malta summit? I know it's only January. Well beginning February frankly,
beginning of February. And it will not be long before spring is upon us and there is the potential for another wave of refugees from war-torn
countries south of Europe to head north.
SWING: First of all, I think it's important to remember that the root causes of forced migration have not changed. So, there's no reason to
expect that the numbers will cease or decline.
QUEST: French elections, German elections where there's a right-wing request group that is threatening or challenging chancellor Merkel whether
successful or otherwise remains to be seen. Do you believe that there are very dangerous times ahead within European politics as it relates to
refugees?
SWING: I absolutely agree. I think we need to be very concerned about this, as you say, we have at least three possibly four elections coming up
in Europe this coming year and based on Brexit and other things we've seen, the outlook is not good. But we need to continue to try to stress that
these are human lives at stake. We need to be in a position to deal with them. And to try to treat them in historical perspective. We have two or
three challenges. One is we need to change the public discourse about migration. That's why I'm very glad to have this opportunity to speak to
you. We got to learn to try to hand nag diversity and to embrace it.
(END VIDEOTAPE)
QUEST: As we continue, the U.S. puts Iran on notice. What does that mean? It's a surprise move and the White House responding to Tehran's missile
test. We'll interpret what does "on notice" actually mean.
(COMMERCIAL BREAK)
[16:30:00] QUEST: I'm Richard Quest. There's more "QUEST MEANS BUSINESS" in a moment. When Etihad and Lufthansa are teaming up they are getting
ever closer. Not a full merger but they are getting closer. Chief executives of both airlines will explain their new cozying up.
After decades of trying the EU agreed on a deal on roaming charges. I'll speak to the MP who got the deal through parliament. I'll ask whether it's
a day late and a dollar short. Before that this is CNN and here the news comes first.
The White House is now putting Iran on notice after its recent missile launch. That's the word from the National Security Adviser Michael Flynn
who said the missile test was in defiance of a U.N. security council resolution.
(BEGIN VIDEO CLIP) MICHAEL FLYNN, NATIONAL SECURITY ADVISER: The Trump administration condemns such actions by Iran that undermines security, prosperity and
stability throughout and beyond the middle east which places American lives at risk. President Trump has severely criticized the many agreements
reached between Iran and the Obama administration as well as the united nations as being weak and ineffective. Instead of being that you feel to
the United States in these agreements Iran is feeling emboldened. As of today, we're officially putting Iran on notice.
(END VIDEO CLIP)
QUEST: President Trump's encouraging senate Republicans to invoke the so- called nuclear option to get his supreme court nominee approved. The nuclear option involves preventing Democrats from using stalling tactics to
block Judge Neil Gorsuch. It means Republicans would only need a simple majority to get the conservative judge confirmed. Donald Trump told the
senate majority leader if need be, do it.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We end up with that gridlock I say if you can, go nuclear. Because that would be an absolute shame if a
man of this quality was caught up in the web. It's up to Mitch but I would say go for it.
(END VIDEO CLIP)
QUEST: Israel says it will build its first new west bank settlement since the 1990s. Approved 3,000 new settlement west bank homes. It comes even
as Israeli security forces clear residents from an outpost built on Palestinian owned land but Israel supreme court ruled legal.
Netherlands is taking the unusual step in its national elections. They plan to count all the ballots by hand. Interior minister says
vulnerabilities have raised worries that the results might be hacked.
Beyonce is pregnant. This time with twins. She posted with this Instagram photo we've been blessed two times over. They have one other child, 5-
year-old Blue Ivy.
More now on the Trump administration's warning to Iran. In the last hour, the White House has held a background briefing on the missile test. CNN
global affairs correspondent is at the state department. Very simple question, what does it mean "on notice"?
ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Richard, I can't say we know just yet. I just have to be honest. We were trying get in on this
conference call and there's some technical difficulties. It seems as if the new administration is using a new system for these conference calls.
We haven't been able to hear anything from those senior administration officials yet. It's a great question, what does it mean "on notice."
Obviously, this administration is looking to take a much tougher line they say than the Obama administration did. Michael Flynn the National Security
Adviser came out in a surprise appearance at the White House briefing saying that the Obama administration's actions only emboldened Iran to take
its actions. The question is what could it do? It does not look as if this was in violation -- this missile test was in violation of the Iran
nuclear deal.
And so, it remains to be seen what the administration will do. But at the united nations it's highly unlikely the U.S. will be able to take any
action on Iran. You might see initially some more bolder military posture in the gulf perhaps against these type of attacks on this Saudi navy
vessel. You've seen more exercises in the region. What it means on notice really doesn't know. More like, it sounds like Iran go to your room right
now.
[16:35:00] QUEST: I want to ask you about the letter or the memo of dissent. A thousand diplomats have been involved either in writing or in
signing this. I was reading the article in this morning's "New York times" discussing how this thing has been around the world. How significant is
this dissent, bearing in mind it was set up as a legitimate channel where you could make objections without fear of retribution?
LABOTT: It's very significant. In my 16 years, here at the state department I've never seen anything like it. As you said this was set up
the culture of dissent is very important here and welcomed at the state department. That was set up after the Vietnam war to voice foreign policy
concerns without fear of retribution, and last year you remember there was that state department dissent cable on the Obama administration's policy on
Syria.
That was 50 diplomats. Now you have upwards of 1,000 protesting this policy, this new visa ban of these seven majority Muslin countries and
these diplomats, I have obtained a copy of the memo, these diplomats say that the policy not only will not affect the achieved goals but also make
America even less safe because it will increase anti-American sentiment. It's very significant and Rex Tillerson, the secretary of state who was
just confirmed is really coming in to a state department in revolt right now.
QUEST: After 16 years, you choose your words carefully. When you say in revolt, first of all when does Tillerson arrive? I imagine within the next
few hours or day or so but that's pretty significant that you use that phrase.
LABOTT: Look it's not just about the policy and I want to be clear. Some of these officials have been harkening back to the Nixon administration.
OK. They serve Democratic and Republican administration. It's not about the president, it's about serving -- it's not about the party it's about
serving the president and teasing they serve. But it's not only this policy about until integration and how they feel that it won't keep America
safe, it needs allies in the war against terrorism.
They say that this will increase the violent extremism and harm the U.S. economy and also, they say, Richard, the way that this was done, not
consulting the agency, the state department, which issues visas, we know that Rex Tillerson or even the acting secretary here, Tom Shannon, Defense
Secretary Mattis, Department of Homeland Security Secretary John Kelly, all left out of the loop. What officials are saying look, we'll implement any
policy you want but let us put in the structures and place and talk to us about it so that we can help you further your foreign policy goals.
QUEST: Thank you.
How many times have you gone away only to come home and find horrendous roaming phone bill on your mobile phone. Now think about free to roam.
The European Union is close to abolishing roaming phoenix. Close but not there yet. We'll be in Brussels speaking to the lawmaker who helped clinch
a final deal.
[16:40:00] (COMMERCIAL BREAK)
QUEST: Think of it as auf wiedersehen, ciao or whatever others say, the European Union is one step away from saying good-bye to mobile phone
roaming charges. Lawmakers have been trying to scrap them for a decade or so. And now a deal has finally been reached. Today. This is what it
looks like, the deal has been put forward. There are wholesale price caps on calls, texts and data. So, these are wholesale prices, call calls,
text, data. That's still quite expensive 7 euros. Some carriers are unhappy they believe that's too high. The smaller carriers say -- the
smaller carriers are saying that the wholesale data price is more expensive than many of the big conglomerate operators are able to offer at the retail
level and the lawmaker who helped steer the legislation through the European parliament joins me now from Brussels. Ma'am, I think you would
agree, congratulations on getting it so far, but I think you would agree this has taken far too long to get this deal done.
MIAPETRA KUMPULA-NATRI, EUROPEAN PARLIAMENT NEGOTIATOR: Yes. The EU started regulating the prices ten years ago with price for five euros for
calling and then now we deliver so that on June 15th the price for the phone calls, making them home when traveling is zero. Text minutes is zero
too. Even the data, which was the most difficult part will be zero for consumer for a normal visit. So, you pay same as home. So, this is really
the same market what the Europeans can now see.
QUEST: So, to be clear because there are numbers we've just shown -- to be clear, when this fully comes in, because it's got a few years before it
fully comes in as I understand it. It will be free roaming across the union?
KUMPULA-NATRI: Yes, and it will actually be the reality after four and a half months. The 15th of June this summer. So now the deal, we found each
other institutions last night after midnight here in Brussels in the same building, European parliament building. Now is the time to say good-bye
for roaming. The only exceptions you can do if you have a very, very large data like my home county Finland we have unlimited data usage for 30 euros
or 40 euros. So, that's good offer. So, traveling with no data limits that's not a reality but good bundles of data you can always enjoy when
traveling not to find the nearest coffee with free wi-fi but just google or check your email, put pictures to your Facebook or so. That's the reality
now after four months.
QUEST: I don't want to be one of these people who sort of is forever carping on. But the reality that it took so long. I mean why wasn't it
possible. You've done sterling work, ma'am. You've done absolutely sterling work to get as far as it has. You hit a brick wall with the
operators on numerous occasions to get it this far. Why couldn't commission parliament simply say a long time ago free single market, do it
now.
KUMPULA-NATRI: Because we do have many operators. We have tens and tens of operators in Europe compared to America they have fewer operators across
member states Here we have many operators. And a few big ones that have coverage of many member states. So, of course, defining the deal was
difficult. Very big variety especially on the price on data and finding a compromise putting all these interests together of the different levels of
the price at home markets and for many markets. We're still split in 28 different markets but now we're delivering not only this roaming but many
others like geo-blocking on the digital economy, that's very much what we're working here in the parliament and the European institutions. Make
Europe the continent of the digital era.
[16:45:00] QUEST: Better late than never and I'm sure many people will be saying that. Thank you for joining us from Brussels tonight.
Britain is about to do some roaming of its own. Britain has just voted to give the prime minister the permission to push article 50 and once Theresa
May odes it starts the Brexit process.
(BEGIN VIDEO CLIP)
JOHN BERCOW, SPEAKER OF THE HOUSE OF COMMONS: To the right, 498. The no, sir to the left, 114. So, the ayes have it. The ayes have it.
(END VIDEO CLIP)
QUEST: Now the white paper on Brexit is to be published on Thursday. That will give the opportunity for a full review, if you like, a public review
of what the government's, the British government's negotiating strategy is likely to be. Across the channel in France officials are rolling out the
welcome mat to any financial company or firm from the stiff London. They are aiming to charm those who are thinking of leaving Brexit Britain. Our
European correspondent has been hearing their story.
(BEGIN VIDEOTAPE)
JIM BITTERMAN, CNN PARIS CORRESPONDENT: At the newly renovated American school of Paris an elementary high school offering English language
education the admissions director has seen a 28 percent surge of applications for next year. The website coming from British addresses has
quadrupled. The school's director has no doubt that Brexit is the reason.
MARK ULFERS, AMERICAN SCHOOL OF PARIS: There seems to be a trend that is showing more people coming not on through visit the campus but to talk
seriously about our American education.
BITTERMAN: On the other side of the city French hi-tech billionaire Xavier Niel is investing part of his fortune to start an incubator for would be
entrepreneurs called Station F. The project got under way before Brexit but organizers have little doubt they will benefit from it.
ROXANNE VARZA, DIRECTOR STATION F: Obviously, Brexit has kind of impacted things, a lot of startups internationally, looking at the U.K. before
looking elsewhere. Today a lot of companies look at France first.
BITTERMAN: It's not just the startups. HSBC bank has announced it will be shifting 1,000 employees to France to maintain its toehold inside the
European Union if and when Brexit becomes a reality. There's every indication others in the financial sector will follow suit. Not that the
French have been shy about trying to scoop up what business they can. They have a government-sponsored business development office in the heart of
London. And inquiries from every sector have spiked since the Brexit vote. The agency's director back in France says businesses are right to plan
ahead given the uncertainty and confusion Brexit has already been causing.
MURIEL PENICAUD, CEO, BUSINESS FRANCE: To move with customs, with the complexity, U.K. will be less good prays to enter Europe. So, the thing to
have the European activities, not U.K. market but European activity based in France or in another place on the continent.
BITTERMAN: As the European countries line up to catch the fallout from Brexit, France certainly wants to be at the top of the list. The director
of business France somewhat happily reminds visitors that the Chinese character for danger is the same one that's used for opportunity. No
matter how the Brits are viewing Brexit, the French see it as an opportunity. Jim Bitterman, CNN Paris.
(END VIDEOTAPE)
QUEST: Let's stay with Europe and the euro bosses. European stocks closed to the good. The best gains of the day. The DAX good earnings. Volvo's
results were better than expected. The markets were up. On the U.S. markets the selloff seems to have stopped but the gains, the best gains of
the day evaporated quite quickly in the early morning session. The Dow was up 27 points. The NASDAQ and S&P ended higher.
The row between the big three U.S. carriers and the gulf three shows no sign of abating. Etihad is pressing hide with foreign partnerships and its
chief executive is defending the open skies in the U.S.
[16:50:00] (COMMERCIAL BREAK)
QUEST: The executive of Etihad airlines says he sees no issues with the contentious open skies agreement. Comes as the U.S. legacy carriers call
on Donald Trump to freeze U.S. route expansion for gulf carriers. On last night's program, right here, you saw and heard the chief executive of
United tell me that issue of open skies and the gulf three is not going away.
(BEGIN VIDEO CLIP)
OSCAR MUNOZ, CEO, UNITED AIRLINES: The facts of the matter and what we as an industry domestically have to protect is American jobs. There's a lot
of folks in this process. I take it seriously as do my CEO peers. The facts are supportive of an unbalanced playing field. Welcome the
competition let's make it more even.
QUEST: This issue isn't going away.
MUNOZ: Not any time soon.
(END VIDEO CLIP)
QUEST: Etihad is urging the U.S. to keep the skies open. It's forging ahead with partnerships, airlines in particular, Lufthansa. The deal with
Lufthansa for greater access, code sharing, maintenance is extraordinary. Lufthansa had been one of the fiercest critics of the gulf three in
European aviation. It was Lufthansa that keeps calling for more regulatory actions be taken against the gulf three. John Defterios spoke to chief
execs of both.
(BEGIN VIDEOTAPE)
CARSTEN SPOHR, CEO, LUFTHANSA: Well, a big part of lust's heritage and big part of Lufthansa's success has been built on partnerships. Not only the
passenger side but also in maintenance, in cargo, in catering and other parts. I think it's an important element of this.
JAMES HOGAN, CEO, ETIHAD: We strengthen our network by partnerships such as this. Is this good for us into Germany, but also good from Germany into
Abu Dhabi and beyond
JOHN DEFTERIOS, CNN MONEY, EMERGING MARKETS EDITOR: By the very nature of your business, you're both globalists. Do you worry about the retreat of
the United States and what could it mean for your sector going forward?
SPOHR: Well, I think it's obvious that we in aviation are the good guys of globalization. We connect people. We put together. Maybe in days like
today more importantly we build credibility of globalization making this world a better place.
DEFTERIOS: James, I would be very surprised if President Trump didn't re- open the gulf discussion when it comes to the open skies agreement with the gulf carriers. Do you have concerns that's going to happen?
HOGAN: We're very clear in our response last year on the structure of Etihad airways, how we operated under the open skies agreement and under
the open skies agreement there are no issues. At the end of the day you can only work with issues that are in front of you. If those issues are
raised again, we'll tackle them. In the meantime, we have to develop our network, develop our partnership in the U.S. with American airlines and
with JetBlue and move forward.
DEFTERIOS: He's considered a transactional president ready to do a deal at any time. The travel ban was quite shocking. As CEOs, how did you see it?
You were surprised by the move by the White House?
SPOHR: I'm sure there is no way about aviation opening the world further and that will also happen, I think, with new administrations around the
world.
HOGAN: The agents here on the ground were outstanding in working with us because people were arriving and then discovering they couldn't travel on.
Addressing that issue. In the broader schedule, we're both on the board, address it as an industry, and we just have to work through this as we go
forward.
[16:55:00] DEFTERIOS: Candidly almost a shock in awe. You wake up and almost every day and there is a new policy or new approach.
HOGAN: There's many challenges invasion. Whether it's economic. Whether it's government. These are issues we have to tackle. At the end of the
day you have to absorb it. You have to ensure your guest's impact is minimized. Find a solution and move forward.
(END VIDEOTAPE)
QUEST: Two chief execs. We'll have our Profitable Moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. I can barely recall when I first started covering the EU and the European commission's attempts to cut
roaming charges in Europe but I'm remind it must be ten years ago. Compare the ten years to get to a roaming free digital single market for cellular
calls and the way president Trump moved into office and started to blow things up to make progress. I'm not saying they are equivalent but I'm
saying European voters eventually will turn around and say why did it take so long to get this agreement for roaming free in the EU? And frankly they
got a point. A good deal has been reached but it's taken too long to get to it. A day late and a dollar short. And that's business for tonight.
END
