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Quest Means Business
Mexico Hit By 7.1 Magnitude Earthquake; Trump Brings "America First" to the U.N.; Equifax Hack Timeline Gets More Complex; Hurricane Maria Strikes Caribbean Island of Guadeloupe; KPMG Apologizes for South Africa Scandal. Aired 4-5p ET
Aired September 19, 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] ZAIN ASHER, CNN HOST: All right, that sound, my friends, marks the end of yet another trading day on Wall Street. Let's take a look and
see quickly how the numbers did. By the way, it is another record high for the Dow. You can see we ended the day solidly in the green. Ending the
day up about 40 points or so. By the way, two things that were squarely on investors' minds today were the fact that Donald Trump for the first time
was addressing the UNGA. Also, the Fed meeting that is happening as well, although the expectation is the fed won't be raising rates this time
around.
My friend, it is Tuesday, the 19th of September, a powerful earthquake has just hit Mexico with buildings in the capital collapsing. We will have a
live report from Mexico City later on this hour.
Also, Donald Trump slams socialism at the U.N. General Assembly. We will be digging in deep to everything that he said.
Also, Equifax admits its massive data breach was not the only one.
Hello everyone, I'm Zain Asher and this is QUEST MEANS BUSINESS.
All right, welcome, everyone. I'm Zain Asher. Mexico City, as I speak, is assessing the damage after a very powerful magnitude 7.1 earthquake just
hit at that region. It happened little more than two hours ago. We know that several buildings collapsed. There we have video here of people
assessing the damage. You can see buildings -- basically people digging through the rubble there. The U.S. geological survey warns there will be
significant casualties.
Mexico's president has called for a national emergency committee meeting. Flights have been suspended at Mexico City International Airport. Mexico's
stock exchange was also suspended as well. Meantime the country is really trying to assess the damage. We're just looking at this video. You can
see that it was very, very serious indeed. And this is only a month, by the way, just one month since and 8.1 magnitude earthquake hit on the
Pacific side of Mexico as well.
Dudley Althaus is a reporter for the Wall Street Journal. He joins us live on the line from Mexico City. So, Dudley, I'm just looking at these
pictures on our screen right now. It looks as though it is very early to tell. It's too early to tell what the extent of the damage is. But you
can really sort of see buildings that have collapse. People pouring through the rubble. I mean, this does seem to appear to be very serious
indeed. Walk us through what you're seeing.
DUDLEY ALTHAUS, REPORTER, WALL STREET JOURNAL: This is by far the most instructive earthquake to hit Mexico City in 32 years and it comes exactly
on the day, the anniversary date of the 1985 earthquake. Which killed at least 6000 people in the center of Mexico City. The damage are seen on the
television is mostly in Mexico City and the central part of Mexico City. We don't know what's happening yet in outlying states, but we expect heavy
damage there as well. This part of Mexico City -- Mexico City is mostly built on an extinct lakebed that was drained and built upon by the
Spaniards.
So, it's actually likable gelatin. Once an earthquake hits we feel them very strongly. This was not as strong as the earthquake as the one two
weeks ago on September 7 in Oaxaca and Chiapas. But this was much closer to Mexico City. About 65, 70 miles south of Mexico City and was felt very
strongly here.
ASHER: And have we had any kind of details? Again, I know it's been just been about two hours so it might be too early. You might not have the
answer to this. But have we had any details on the number of casualties? If there are any.
ALTHAUS: No, we got only preliminary details. And the television images here in Mexico City show bodies be taken out of some buildings. The
buildings are pancaked, which is very dangerous. This earthquake hit about two hours after an alarm drill that they do annually on the anniversary of
the '85 earthquake. And we don't know what happened. You know, one of the dangers might be that people thought this second alarms, the alarms went
off right before the earthquake, might have thought it was just another drill, and stayed in their buildings. These buildings are pancaked. This
is a very dangerous situation.
ASHER: So, because there was that drill then, based on the anniversary of the 1985 earthquake, because there was that drill that must have indeed,
caused some confusion is what you're saying.
ALTHAUS: I think that's what we're supposing. We don't know. And we hope not. I mean, people should have gotten out of the buildings. People here
are very, very aware of earthquakes and very aware of how to get out. Or it's just a matter of they thought maybe that it was just another drill.
ASHER: So, your seen it was --
ALTHAUS: We don't know that yet. I don't want to get ahead of it.
ASHER: OK. And in terms of aftershocks, have we felt any aftershocks there on the ground?
[16:05:00] ALTHAUS: We haven't felt them here in Mexico City. But it's been out for some in Pueblo, it's about 80 miles to the east. The
epicenter of the quake was down south of Mexico City. Kind of on the borderline between Puebla and Guerrero and Morelos state where they all
come together, like I said, about 65 miles south of Mexico City.
ASHER: And typically in these sorts of circumstances, obviously, there is some confusion and initial trouble with assessing the extent of the damage.
Again, it's only been about two hours. But what exactly is the process as authorities began to sort of dig through the rubble to find out if there
are any casualties and the real extent of the destruction? Just walk us through the actual process of that.
ALTHAUS: I don't know. I mean, they have to go through each building little by little. That's going to take some time. But I think you can
assume from the images of the damage that there are significant casualties.
ASHER: All right, Dudley Althaus, thank you so much for bringing that to us. I hope that everybody around you is safe and I wish everyone the best
of luck. Thank you so much.
ALTHAUS: Thank you.
ASHER: You're welcome.
Tonight, the U.S. President Donald Trump expounded his America first vision to the world in his debut speech at the U.N. General Assembly. Mr. Trump
focused on sovereignty. Making it clear that the United States will act in its own self-interest. The president spoke in blunt terms and delivered a
very strong warning against authoritarian regimes. Mr. Trump threatened to totally destroy, those are his words, totally destroy North Korea if forced
to defend itself or its allies. He referred to Kim Jong-un as "rocket man." He used that phrase before. Warning that the North Korean leader
was on a suicide mission for himself.
The president then hinted he was ready to scrap the Iran nuclear deal. He called it one of the worst and one-sided transactions and an embarrassment
to the United States. The president next criticized Venezuela and Cuba. He said the U.S. was prepared to take further action against the Maduro
regime and describe Cuba as corrupt and destabilizing.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: major portions of the world are in conflict, and some in fact, are going to hell. But the powerful
people in this room under the guidance and auspices of the United Nations can solve many of these vicious and complex problems.
(END VIDEO CLIP)
ASHER: All right. CNN's Robyn Curnow joint is now live from the U.N. So, Robyn, I think that the highlight, if you will, of this speech in terms of
what President Trump -- the line that everybody focused on is this idea that, you know, the U.S. will have no choice but to quote, unquote, totally
destroy North Korea. The president boxes himself into a corner. How does he make sure that North Korea doesn't continue to call his bluff?
ROBYN CURNOW, CNN CORRESPONDENT: I don't know. And I don't think anyone knows the answer to that, Zain. I mean, I think that's the million-dollar
question. And there's no easy answers on North Korea. This is not a new conflict. I mean their nuclear ambitions are not new. So, what is new is
this American president and the message he sent from here in the United Nations.
I must say, it is very windy and wet here at the moment, because hurricane Jose has kind of hit the East Coast. So, it is gray in New York. But
certainly not as dark as President Trump's speech was. And as you said, I mean, it was a startling speech in many ways because it was such a dark
nationalistic speech about the world.
But what was also interesting was the threats, as you say, to the North Korean leader. A threat where he essentially not only just said that he
would try and totally destroy the country, but also, he insulted the leader, calling him "rocket man." What is the point of that? Will that
make North Korea stop producing nuclear weapons? Will that make them think again, come to some sort of negotiating table? Many say no, it will do the
complete opposite.
ASHER: Do you think what we got what we expected from Donald Trump's first speech addressing the UNGA?
CURNOW: Well, I suppose the question really is who is the audience he was trying to speak to. I mean, when you say we, who is we? He is speaking to
his base. He wants to send a clear message that his campaign rhetoric is going to be enforced during this presidency. He's under pressure to
provide that sort of for conservatives, which is why you heard that word, sovereign, repeated a number of times. I mean, I lost track of the number
of times he said, you know, America had a sovereign right to protect, you know, what they wanted to do, national vested self-interest. He called his
foreign policy a principled realism. All of this points to a very different view of the world. So, for his base, they might not realize just
how starkly different that message was.
[16:10:00] But for the leaders here in the General Assembly who heard this bleak, dark nationalistic vision from an American President who was
threatening to annihilate another country, even one that's a rogue state. It sent shivers up many of their spines. And it certainly was a very, very
different speech. One that many people here say they really haven't heard before.
ASHER: Robyn Curnow, there on Donald Trump's dark and very nationalistic address to the UNGA. Robyn, thanks so much.
The Donald Trump, CEO turn President brought the boardroom mentality to the U.N. podium today. Mr. Trump's tone was fiercely and unashamedly
capitalist from the start. The president began by celebrating his economic record. He boasted of jobs growth and the U.S. stock market being at an
all-time high. As he did on Monday, Mr. Trump called for a reform of the U.N. He wants the U.S. to get a better return on its investment. Also hit
his speech, Mr. Trump advocated the free market. He warned countries that they had to stand up for themselves and could not rely on the United States
for help. President Trump fiercely pro-capitalist made a direct attack on socialism. His comment was not immediately met with applause by the
chamber. Take a look.
(BEGIN VIDEO CLIP)
TRUMP: the problem in Venezuela is not that socialism has been poorly implemented, what that socialism has been faithfully implemented.
(END VIDEO CLIP)
ASHER: All right, I want to bring in CNN's senior U.N. correspondent, Richard Roth. He joins us live now from the U.N. So, Richard, I had Robyn
Curnow touch on this just a few minutes ago. Who was Donald Trump's audience today? Was it a domestic audience, or the international audience
do you think?
RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: I think it was the entire world. This was Donald Trump's chance to really show people who may not
have actually heard him before or seen a major doctrine type speech. And to personally hear through television or in that General Assembly hall
exactly what's on his mind regarding the state of the world and the future and what action the U.S. is prepared to take.
Definitely almost a gasp, according to some that CNN people have talked to. In that room, which I almost heard myself on television, when he talked
about destroy North Korea if allies were attacked in the U.S. was attacked. There was also after his comment on socialism working too well and
criticizing that. There was some either laughter or nervous tittering in the room. Now you mentioned, and President Trump mentioned, Venezuela, the
reaction was quick from Venezuela's foreign minister who accuse President Trump of racism. Let's listen to some of the criticism afterward for
reporters.
(BEGIN VIDEO CLIP)
JORGE ARREAZA, VENEZUELAN FOREIGN AFFAIRS MINISTER: This is supposed to be the house and the headquarters of peace, and the international law. And
what we heard was the opposite of that.
(END VIDEO CLIP)
ROTH: Venezuela's foreign minister saying that Trump speech brought the Cold War back. Reagan era he said. Now Iran's Foreign Minister in a tweet
said, Trump's hate filled speech, ignorant hate speech. The Iranian leader will speak tomorrow, Wednesday. No doubt will return fire. And on a
coincidental note, the leaders, including Donald Trump, had the traditional lunch at the U.N. after Trump speech, and the salad was an appetizer of
wild rocket and baby red romaine lettuce. No idea what President Trump might have thought when he looked down at the menu.
ASHER: Oh, what a coincidence. So, Richard, let's talk a little bit about Netanyahu, because he also spoke as well. Just describe the difference
that we got from his speech today addressing the U.N. compared to previous ones. Because it struck -- he struck a much more positive tone.
Especially because you have President Trump in office right now, and he believes that leads to a brighter future for Israel's position in the
world.
ROTH: Well, it was quite striking. First of all, Netanyahu never seem to be here on the same day as the U.S. president, whether that was scheduling
or he didn't want to appear on the same day as President Obama. The Rosh Hashanah holiday is later this week. For whatever reason, he's here on the
opening day of big speeches. When he was listening to Donald Trump, he was beaming. His arms were -- the body language was just I am so happy to be
here with President Trump. It was like the new school teacher was back in town. And then in his remarks, he did echo what he said last year. Which
was Israel is making inroads perhaps privately with governments around the world, despite all the anti-Israel bluster at the U.N.
But he certainly sided with President Trump in a wide-ranging, once again, denunciation of Iran and how Iran's nuclear program is going to be coming
back. And don't be fooled by this agreement worked out with powers that he called was the biggest embarrassment -- which President Trump said was the
biggest embarrassment to the United States. And Netanyahu said, you can't award the Iranians, they're just gorging on building up a program now
despite sanctions -- because of sanctions being lifted.
[16:15:02] But he was probably the happiest man in the room that Donald Trump is the president of the United States.
ASHER: And in terms of what you said about Iran, we eagerly await to hear from Rouhani. OK, Richard Roth, life for us there at the U.N. thank you so
much.
Now the U.N. says gender equality is a basic human right. But Donald Trump has zero interest in the topic and that's a view of Linda Gates, who has
been speaking exclusively with my good friend, Poppy Harlow. Poppy joins us live now. So, Poppy one of the other things that Melinda Gates touched
upon was this idea of America first, this sort of protectionist view that Donald Trump has. Just what did she say on that issue? Walk us through
that.
POPPY HARLOW, CNN CORRESPONDENT: First of all, lovely to be with you. Were often spread apart by an ocean. But it's lovely to be with you.
Look, we sat down this morning at the CNNMoney American Opportunity breakfast at the same time that the President was giving his address at the
United Nations. And we knew that this was going to be in America first agenda. She and her husband, of course, billionaire philanthropist,
Microsoft founder, Bill Gates, had been very outspoken about how America first they believe is a dangerous mission if you cut so much foreign aid
that helps protect in their minds, this country. Listen to our conversation.
(BEGIN VIDEOTAPE)
MELINDA GATES, CO-CHAIR, THE BILL AND MELINDA GATES FOUNDATION: There are a whole host of people speaking out in doing the right thing, because they
know that this aid makes a difference. And I think sometimes we have a misnomer. We think, oh, well the Democrats are for this in the Republicans
aren't. No, if you go back and look at foreign aid, some of the biggest increases were under President George Bush.
HARLOW: Yes.
GATES: The President's emergency plan for AIDS relief was put in by George Bush. That was the biggest increase in foreign aid. People are alive in
the developing world who wouldn't be able to be alive and who are being prevented from getting AIDS because of their program and what came behind
it with the global fund.
So, these things have good bipartisan support. It's our job as a foundation and with our many, many partners, some of who are in this room,
to remind Congress that those investments make an enormous difference in the world.
HARLOW: Here's how your husband put it. In February, Bill said, he's concerned that the America first rhetoric could threaten global security.
Do you share the same concern as your husband on this front?
GATES: Definitely. We are a global world. We Art just America as an island anymore. All you have to look at is peace and security around the
world. Or look at diseases, how they cross borders. Ebola showed up in our country. Started in west Africa -- right. So, we are a global
community and we need to talk about being a global community and about lifting everyone up. Yes, we have problems in our country. Yes, we still
have too much poverty. We need to work on that, but we also need to work on the rest of the world. Because if we want peace and security, we need
to make sure that everybody has the chance to grow up and live a healthy and prosperous life.
HARLOW: What is the number one thing -- you said you've been in Washington a lot with the administration. I assume that means -- I know your husband
has been at the White House -- have you been at the White House?
GATES: Yes.
HARLOW: OK. What is the number one thing that Trump administration could do right now to advance these causes and specifically your cause for women
and girls?
GATES: To advance causes, they should put money behind them. If you believe in women, you fund things for women. You fund family planning.
You fund women's health. The power is in the money. The way we've made progress in Africa and India and Bangladesh, is that we funded things. And
so, to not make those investments in the way we look at it, when it's less than 1 percent of the U.S. budget, it just doesn't make any sense. We're
going to have more security issues in our own country if we don't create peace and prosperity. People want to stay where they are if they can lift
their family up and have an economy. They don't want to get up on the high seas and move to Europe or necessarily come to United States. But if we
don't keep making those investments, wow, we are going to have a problem in this country.
HARLOW: That is the risk.
GATES: Absolutely, we know it's the risk. The president put in, to be frank, zero dollars for family planning. He took a budget that was over
600 million and his budget says zero. So that tells me what he thinks about women, zero. Right? And yet we know that's the thing that will lift
women out of poverty.
HARLOW: What you think women say?
GATES: It says women are important. That family planning is not important. That you don't believe in this. But however, Congress both the
House and the Senate, have put pockets of money and for family planning. It says to me they know that making investments on behalf of women is
important. It's what we have done for a long time as a country. Because were generous country and any country that cares about the right ethical
issues, but also because it supports peace and prosperity. All the generals wrote a letter to President Trump saying, look, you got to make
these investments in health and will have to buy less bullets. That just makes sense.
(END VIDEOTAPE)
HARLOW: A fascinating and very candid conversation, Zain, with Melinda Gates, who rarely gets political at all.
[16:20:01] But for she and her husband, Bill Gates, this is beyond politics. This is about funding the most important things in the world in
their mind. And that's why she went there and said, here's what the president can do to fund all of this --
ASHER: All about money.
HARLOW: Exactly, and foreign aid, and here is why it protects this country. It was fascinating. She's been spending a lot more time in
Washington recently. I said what members of Congress have been most helpful to you? She said, I'll keep those names to myself. But people on
both sides, Republicans and Democrats. And we know she sat down for conversations with the president's daughter and his advisor, Ivanka Trump,
about paid family leave. Something she's been a huge advocate for. And something that Ivanka Trump has as well. So, potentially there is more to
be seen there as we see Congress work through this.
ASHER: And I said to you, as it was playing, that I loved her emotion. I love how passionate she was. Poppy, we have to leave it there because
running out of time. But it's always good to see you my dear. Great to see you, poppy.
All right, still to come here on Quest Means Business. To be hacked once may be regarded as misfortune, but twice, twice certainly looks like
carelessness. Add in a couple of executives offloading their shares and we have big, big questions about Equifax. About who knew what and when. That
story next.
(COMMERCIAL BREAK)
ASHER: All right, welcome back everybody. Equifax shares actually rose slightly on Wall Street today, even as news of a second, a second breach of
the company, raise questions about executives who sold their shares before the collapse in prices began. Now the stock has lost around a third, a
third of its value over the past two weeks. And now new pieces of the timeline are being revealed. So, allowed me to just walk you through what
has happened at Equifax since the middle of this year.
First and foremost, around May or June hackers gained access to the personal data of 143 million people between, as I mentioned, May and July
this year. Equifax revealed the breach to the public earlier this month, that was still in September. September 7, they revealed the breach to the
public. And that triggered, as you would expect, lawsuits and investigations.
And today, the Attorney General in Massachusetts has filed a suit against the company. And with the news of the hack came news that three, three --
and this has a lot of people intrigued, by the way. Three executives at Equifax actually sold their shares of the company in early August. That
was after Equifax knew about the breach, but before they had actually told the public. Equifax insists the executives didn't know anything about the
breach when they sold the stock.
But now Equifax has revealed hackers breached a payroll related system in March. Security journalist Brian Krebs says the stolen data includes tax
records as well. Equifax has denied reports that the two breaches are connected.
So, walk with me over here, because Samuel Burke is following this story. This very important story live for us from London. So, Samuel, first and
foremost, I just want our audience to really understand the relationship between the two breaches. Just walk us through that.
[16:25:07] SAMUEL BURKE, CNNMONEY, BUSINESS CORRESPONDENT: Well, basically there is contradicting information right now. There is a report from
Bloomberg from an insider at Equifax who says these two incidents are connected. But on the other hand, Equifax is saying that they have hired
one of the best-known security companies in the world. And that that security company is telling Equifax, that look, they aren't connected.
I think at the end of the day consumers don't really care whether they're connected or not. They just want to know if they are affected and what
they can do. And I think that's really the most troubling thing here. Is the fact that Equifax is not being completely forward? And the fact that
we just found out today about the that about 100,000 Canadians are affected by this.
You know, last night we were talking about Ryanair, in it seems like two completely different stories. You know, comparing to in a sense actually
is very accurate. Because, look, at the end of the day if you're telling people, whether a flight being canceled or whether it's your information
being stolen, well, only 2 percent of our customers have been affected. But you're not telling us which 2 percent. Well, then you leave everybody
who's in Equifax customer feeling like, what the heck could this be me. And I think that's really where the problem is.
ASHER: And Samuel, it's not just the fact as you mentioned, that they withheld information and they weren't forthcoming, which is important in
both Ryanair and Equifax. But it's also this issue, this minor detail that you had various executive selling their shares as well. And then when you
add to the fact that it's not just one breach were talking about, but two breaches. And the executive sold their shares before the information was
made public. I mean, it looks bad, Sam, it looks bad. Can I call you Sam by the way? I've never called you Sam before. Samuel --
BURKE: I go for Samuel but we'll talk about that off air, Z. Listen, at the end of the day -- let me just play devil's advocate for second and say
even if these executives had no knowledge about this when they sold those shares, it looks incredibly suspicious in the sense that right at the end
of July, Equifax says that's when we find out about this. And in the next three or four days, three executives started selling their shares. I mean,
that is just incredible. How could these high-level executives not know about this when they were selling their shares, when Equifax says, we knew
about this at this time. It definitely makes people not feel great in their stomachs.
ASHER: You can say that again. OK, Samuel Burke, life for us. Thank you so much. Appreciate that.
Investigators still don't know who was behind the breach. Joining me now, Dave DeWalt, is the CEO of NightDragon Security, and a former CEO of McAfee
and Fire-i. So, Dave, thank you so much for being with us. Just walk us through overall the challenges of dealing with a cyber security nightmare
of this magnitude.
DAVE DEWALT, CEO NIGHTDRAGON SECURITY: Well, Zain, thanks for having me. And first of all, we have almost a perfect storm happening. You know, a
lot of these companies are very challenged in protecting themselves against the attackers. And if you follow cyber security like I have for almost 2
decades, we know the sophistication of the offense of the attackers is incredible. And we now have superpowers, many of them around the world,
very advanced criminal groups. A lot of different surface area and technology to attack.
And now are seen a lot of vulnerabilities that are being released like the case in Equifax with the Apache stretch vulnerability, where companies only
have a couple of days to in some cases to react. So, very short time to react. A lot of surface area to protect. A lot of sophisticated
attackers. Throw on privacy and regulation demands, it's kind of a perfect storm in a challenging environment for a lot of companies. And you're
seeing the aftermath of that.
ASHER: Wait, so you mentioned that the technology and the sophistication of the offense is quite serious and important. But what about the
technology and the sophistication of the defense? Why hasn't it caught up yet?
DEWALT: Well, you know, despite a cybersecurity market that's grown, you know, and that tends the billions per year in spending, you know, the
defense has to be right every time. The offense only has to be right one time. So, you're only as good as the weakest link. And here comes a
vulnerability that gets released in May and sure enough the company start getting hit days later. And in these particular cases with large cloud
commerce facing applications, bringing down a production system for vulnerability in a patch is very challenging to do in a quick period of
time. So, you know, it's a tough window for companies like Equifax. But I think the defense has to get better, obviously. Education is required.
Hygiene improvement is required. And probably a learning environment for everyone right now.
ASHER: What is the motivation for a massive hack attack like this? Is it purely financial?
What I the motivation for a massive hack attack like this? Is it purely financial?
DEWALT: Well, Zain, it can be just about anything now. We're seeing everything from, you know, cyber espionage that the superpowers are doing.
Even terroristic type attacks in the cyber world. Cyber extortion that were starting to see with the HBO cases and others.
[16:30:00] We obviously, with the ransomware and the financial concerns, the criminal groups, hacktivists, it ranges. But in this particular case,
probably criminal oriented and obviously, focused on the financial gain. This information is pretty critical to a lot of consumers. And as you can
tell, you know, a large number of them at the same time.
ASHER: All right, Dave DeWalt, thank you so much. Appreciate you --
DEWALT: Thanks for having me.
ASHER: -- for digging into that. You're very welcome.
After the break, want to bring you a little bit more on the damage from that major 7.1 earthquake that just hit central Mexico about two hours ago.
There are reports of lives lost. And you can see from this video the damage there has been extensive. We'll have the latest after the break.
(COMMERCIAL BREAK)
ASHER: Hello, everyone, I'm Zain Asher. There is more QUEST MEANS BUSINESS in just a moment. But first, these are the top news headlines
we're following for you at this hour.
All right, we now know that at least four people have died after a magnitude 7.1 earthquake has struck central Mexico. That's according to
Reuters citing officials. It was felt in Mexico City, which is about 120 kilometers away. And Mexico's president has called for a national
emergency committee meeting. The quake comes one week after an 8.1 quake struck off the southern coast of the country.
At least one person is dead, and two missing after a powerful hurricane Maria slammed into the Caribbean island of Guadalupe. The government says
about 80,000 people are now without power. The category five storm continues to churn through the region with hurricane warnings now
stretching from the U.S. Virgin Islands to Puerto Rico.
In a sweeping speech at the U.N. General Assembly, Donald Trump made it clear he's willing to totally destroy North Korea should the U.S. or its
allies come under attack. The U.S. president also insisted there is nothing wrong with nations acting in their own self-interests and stated
he'll always put America first.
The Israeli Prime Minister praised President Trump for calling the Iranian nuclear deal an embarrassment and Benjamin Netanyahu said the accord should
be changed or canceled. Fix it or nix it, is what he said. He had a direct message for Iran's supreme leader, who he calls a dictator, quote,
the lights of Israel will never be extinguished.
Equifax now says 100,000 consumers in Canada are among those impacted by its recent data breach. It possibly includes their names, addresses,
socialist insurance numbers and credit card details, as well. Equifax revealed earlier this month that 143 million Americans also may have been
impacted, as well as 400,000 people in the United Kingdom.
[16:35:05] All right, I want to get you up to speed on our breaking news that we brought you at the top of the hour. Mexican President, Enrique
Pena Nieto is returning to Mexico City to assess the damage from the latest earthquake to strike the capital. Mexico's airport has suspended
operations and so did the Mexican stock exchange. The epicenter was about 120 kilometers southeast of Mexico City. That's according to the U.S.
Geological Survey. Earlier this month dozens of people died in an 8.1 magnitude earthquake, which is also by the way, felt from Mexico City.
Miguel Marquez is monitoring the situation from Los Angeles. I mean, it's so unfortunate to have these two massive earthquakes strike in just one
month. I mean, two weeks ago I was talking about the 8.1 magnitude earthquake and now it's a 7.1. You're in Los Angeles, what are you hearing
from there?
MIGUEL MARQUEZ, CNN CORRESPONDENT: Yes, this one could be worse, because it's close to so many population centers. Not just Mexico City, but we are
seeing really, really disturbing pictures right now of buildings collapsed and triage centers on the street in Mexico City. But it's also the
epicenter was close to Puebla, even though it was deep underground about 60 kilometers or so. It was close to Puebla, Mexico, which is a city of 1.5
million people.
We know from Reuters saying that two people have died in the state of Puebla. Two people have died in Mexico. But the mayor of Mexico City is
saying that while they don't have any indication of deaths yet, there are people trapped in buildings that are burning. It is disturbing to see the
pictures coming out of Mexico right now. Not only to see those buildings collapse, but to see the immediate aftermath of this earthquake stretched
across Mexico City in these cities.
You can see just the rubble and the fires in the dust across wide, wide swaths of the city. So, I think we are only beginning to understand the
breath of this disaster -- Zain.
ASHER: And you know that, Miguel, we heard that Mexico's president has called for a national emergency committee meeting. What's going to be his
first priority do you think as he begins to assess just how destructive this earthquake was?
MARQUEZ: Well, clearly, those buildings that are collapsed and figuring out how they can get to the people inside them. If they have fires, this
is always the issue with these earthquakes. The buildings collapse, gas lines are disrupted, fires begin and then you can have very large parts of
the city go up in flames at the same time. So, getting those immediate needs taken care of. It is amazing to see some of those pictures of those
triage centers on the streets with people already piling into them. Clearly, this is going to be a huge issue. You know, the Mexican president
had an issue -- he was trying to land at the Mexico City Airport, that was close as he was trying to land. He had to touch down in a military airport
nearby. So, this is going to have ramifications for
ASHER: I think just one part that was quite confusing is that this happened on the anniversary of that 1985 earthquake as well. It seems
uncanny. We know that four people have died unfortunately from this incident. But of course, the death toll, as you and I both know in these
cases, could of course rise.
MARQUEZ: yes, there are local reports that he can go much higher. In his some ways, the fact that it was the anniversary of that massive quake that
they had a Mexico City might have been good, because they had actually had an anniversary training drill for it. So, people were -- they were not
only 8.1 quake a few weeks ago, but the anniversary of that massive quake in Mexico had people at least thinking about earthquakes and thinking about
safety and maybe that saved some lives. But there are already local reports that others have perished in this disaster. And I'm sure in the
hours ahead were going to get the full scope of it -- Zain.
ASHER: And we heard that Donald Trump has also responded to the crisis in Mexico, tweeting, God bless the people of Mexico City. Miguel, we have to
leave it there. Thank you so much, appreciate that.
And I want to bring in Allison Chinchar, who is at the CNN World Weather Center and joining us live now. So, Allison, I mean, people here these
numbers -- right. 7.1 magnitude earthquake, 8.1 magnitude earthquake. For people who have never experienced an earthquake, let alone an earthquake of
that magnitude, just walk us through what it is actually like? Put those numbers into context for us.
ALLISON CHINCHAR, CNN WEATHER ANCHOR: So, again, a 7.1 we would consider for 6s and 7s and 8s and 9s, those are the higher end of the scale. But I
also want people to understand that the depth plays just as much as an important role as the actual magnitude the quake does.
[16:40:00] Because the shallower the quake is the more likely you are to have damage. Especially at the surface. Here is a look. Here's where the
earthquake was for a reference point, for those who are unfamiliar with the geography there. When we talk about the amount of people, population also
plays such a huge role in this, not just for people affected by but also the damage. Because where people live you naturally have more structures
that coincide with it.
We have about 28 million people that felt some type of weak shaking from this quake, 20 million that felt moderate shaking, and about 9 million that
felt strong shaking. And that is likely the folks that are a little bit closer in. So, we talk about the depth, it was 32 miles or 51 km deep.
Anything that is 70 km or to the surface, so the first 70 km deep, that is considered a shallow quake, even though you may not think a 70 km in your
mind as being shallow. In terms of an earthquake it is.
And the closer you are to the surface, we talked about this, the more likely you are to have damage and widespread damage. It is also that we
are talking about the depth, Zain, but is also the magnitude, the two go together in terms of damage when you're talking about earthquakes.
ASHER: It sort of feels like deja vu because two weeks ago, I was anchoring a show on an earthquake in Mexico and hurricane in the Caribbean,
and now today, I'm anchoring the show on an earthquake in Mexico and hurricane in the Caribbean again. Just walk us through hurricane Maria's
path because it could be -- I am sorry it looks like Donald Trump is speaking now, let's listen to him.
(BEGIN VIDEO CLIP)
SHEIKH TAMIM BIN HAMAD AL THARI, QATAR EMIR: The relationship between America and in a very strong relationship, a historical relationship and
since we met in Riyadh, I would say a very, very important meeting and that we sign those agreements, we were the first country to respond to this
agreement, and we sign this MOU of counterterrorism. So, we really appreciate this relationship, Mr. President, we have a lot to talk about,
trade, military cooperation, security cooperation, to thank you very much and as you said, Mr. President, we have a problem with our neighbors. In
your interference will help a lot, with your interference hopefully we can find a solution for this problem. We have always said we are very open for
dialogue and will always be open for dialogue.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We get into some, thank you very much everybody.
(END VIDEO CLIP)
ASHER: OK, it looks as though we just caught the tail end of that, that was president Trump speaking with the Emir of Qatar, he talked about a
problem with his neighbors putting it lightly, and he is talking about the economic blockade that various countries in the Gulf have had against
Qatar. He is looking for Donald Trump to help him through that.
OK, more breaking news to bring you, and we do have an update on the death toll in Mexico which has been by the way raised substantially, the governor
of the state of Morelos says at least 42 people have been killed. Right, I want to bring in Allison Chinchar back at the CNN world weather center,
talk us through their, so we are interrupted there because obviously the president was speaking. Walk us through the actual of hurricane Maria.
CHINCHAR: And so, at this point, we think that the next point of landfall is likely to be over areas of Puerto Rico. Right now, winds are 270 km per
hour, that is an increase from our last update that is not what you want to hear. You want to see the storm weakened before it makes landfall not
increase in strengthen. Here's a look at where we expected to go. We have hurricane warnings out for the Virgin Islands, Puerto Rico, in areas of the
Dominican Republic because that is where it's going to be heading.
We are talking about storm surges when big threats. Around Puerto Rico and the U.S. Virgin Islands we could be looking at 2 to 3 meters of storm
surge. Further to the east St. Maarten, St. Kitts and Nevis, the British Virgin Islands, we are talking 2.5 and you even 4 meters of storm surge.
In addition to that rainfall is going to be a huge factor, again, 100 to 150 millimeters of rain widespread. But then you are going to have other
areas that could pick up 225 if not even 250 millimeters of rain.
That not only poses problems just for flooding in general but also can trigger mudslides. We have seen that before with islands in the Caribbean
because of the topography and how steep some of those islands can be. So, it is not out of the question that we could experience the same thing from
Maria.
The next point on the path crosses directly over areas of Puerto Rico, then pushes up towards the Dominican Republic likely to make landfall over
Puerto Rico early Wednesday morning local time. From there it crosses over the Turks and Caicos and goes back out over the open Atlantic. It's from
there the question really starts to come in because the models begin to vary. And can vary quite a bit. Again, you can see the distance that they
put themselves at but now you're talking seven, eight, even nine days from now, and a lot can change in that timeframe.
[16:45:00] The reason there is a discrepancy between the two is based off of this high-pressure system near Bermuda. If it stays where it currently
is located, the storm will wrap around in a clockwise fashion and go back out over the open Atlantic. If that high pushes back west closer to the
U.S. it will allow the storm too much of the same, Zain. But again, there is a lot to behold what happens in 7 to 10 days, but what we do know is in
the short term that Puerto Rico is going to be impacted severely as Maria crosses over early tomorrow morning.
ASHER: All right, Allison, thank you so much. And for our viewers at home we are going to be live in Puerto Rico in just a moment as we discussed
their preparations for hurricane Maria, which is what Allison was just talking about. But before we get to that, I do want to recap the breaking
news, we just received a short time ago. We do have an updated death toll in Mexico, the death toll has been raised substantially, initially it was
four, but now we are hearing according to the governor of the state of Morelos that at least 42 people have been killed. Once again 42 people
have been killed according to the governor of the state of Morelos in this 7.1 magnitude earthquake that just hit Mexico about three hours ago.
Bear in mind it has been less than a month, in fact less than two weeks, since another 8.1 magnitude earthquake hit the Pacific side of Mexico as
well. We will have much more in our breaking news after a short break, don't go away.
(COMMERCIAL BREAK)
ASHER: The governor of Puerto Rico says it is time to act and evacuate as hurricane Maria threatens the island with dangerous winds. Hurricane Maria
slammed into Dominica as a category five hurricane, it was the strongest storm on record to make landfall there. And let me tell you a left
widespread devastation, the Prime Minister says the winds even tore, get this, the Prime Minister says the winds even tore off the roof of his own
house as well. CNN has reporters in place across the Caribbean, we have correspondence and various islands that are due to be hit by the hurricane.
Nick Paton Walsh is in Puerto Rico for us, Nick, the question is how do you prepare for hurricane when it has only been two weeks, less than two weeks
in fact since you hit the last time around?
NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: This is a key issue facing Puerto Ricans right now, still reeling from $1 billion worth
of damage done by hurricane Irma just two weeks ago, 46,000 people still without electricity after that. You can still see the roads having trees
blown down near them, damage still visible, but yes, the question really is as hurricane Irma left people already reeling in a state of unpreparedness
for Maria coming? Well, Irma was really a glancing blow, it went very close to Puerto Rico, didn't really strike it.
[16:50:00] Maria is expected to go straight across it, hits to the east, just behind me here, Palmas Del Mar, possibly 2 o'clock or 4 o'clock this
morning, and go straight across the island possibly to the capital, San Juan. A lot of damage possible here, this is a storm that has very quickly
gathered intensity, again, about 100 miles an hour in speed, in just 30 hours to its current speed of now 165 miles an hour. We could be talking
about storm surges that bring water may be where I am standing, so about 9 to 11 feet, in possibly enough as twice my height here, and maybe as much
as 25 inches of rain.
They are telling people to evacuate from flood risk areas like this, we have seen water rationing in some stores, definitely an area which knows
that this is coming, but the broader question as have people taken the warning seriously enough to get away from the danger. We have seen people
on buggies just headed toward the beach in the past half an hour or so coming back as well. But this is certainly the broader question in the
next 48 hours, our people away enough from that danger? -- Zain
ASHER: Are they ready, in the clouds behind you starting to look ominously dark, Nick Paton Walsh by first there in Puerto Rico, thank you.
KPMG says it is sorry for worked at the firm did with this family in South Africa, we will have details after the break.
(COMMERCIAL BREAK)
ASHER: Welcome back everybody, KPMG issues a global apology for its role in a massive political scandal in South Africa. The company says, this is
not who we are. KPMG South Africa made serious mistakes and errors of judgment, we will further strengthen the monitoring of clients we choose to
work with.
A firm now faces a possible exodus of clients in South Africa. Dave McKenzie joins us live now from Johannesburg. So, David, just in terms of
KPMG's response, the apology is going to be enough to repair its damaged reputation throughout all of this?
DAVE MCKENZIE, CNN CORRESPONDENT: That remains to be seen, at least two companies here in South Africa said they are dropping the major auditor
from their list of people to do business with. And this is potentially a dangerous time for the firm because that global CEO's comment came off the
back of the new local CEO's comments, and that doesn't seem to be placating the South African public, or some businesses and government structures that
they do business with. This all relates to allegations that KPMG in effect did not do its job, they even admit that they did shoddy work on businesses
related to the Gupta family. Now that is an Indian business family here, billionaires that have close ties to the President Jacob Zuma and have been
long implicated in massive corruption here in the country.
[16:55:00] Allegations they and the president of South Africa of course deny. But KPMG has been caught up in a scandal, both in terms of the
auditing work they did for Gupta companies as well as a report that they fashioned for the South African Revenue Service which in some way
implicated the then boss Previn Gordon, who was smeared many say by that report. They have withdrawn that report completely, I apologize for it,
and so this is a very difficult time for KPMG in this country. And there could be more implications as the regulator of auditors here investigates
this, and they could be facing questions in parliament very soon.
ASHER: In terms of Jacob Zuma himself, you and I both know he is ultimate survivor, just walk us through his reputation as well as the group to us
through all of this.
MCKENZIE: Certainly, in some quarters, Jacob Zuma's reputation is in tatters, but he is a survivor. And is still in power. I'll certainly you
have had organizations, entities, people in the periphery of these allegations of corruption, who have been tainted by this, including KPMG.
But the man who has often been at the center of these allegations, Jacob Zuma, gets away unscathed. He could still face several hundred counts of
corruption charges in court in the coming months, and he is locked in a legacy battle for whoever next leads the ruling ANC.
But again, he has denied his charges despite the mounting evidence that he is somehow involved -- Zain.
ASHER: All right, Dave McKenzie life for us there in Johannesburg, thank you so much. And that my friends is QUEST MEANS BUSINESS for this evening.
I am Zain Asher, thank you so much for watching. Richard is back tomorrow.
END
