Return to Transcripts main page
Quest Means Business
President Trump to Meet With Kim Jung-un; Potential Outcomes and Risks of Trump-Jung-Un Meeting; Stock Market Update; Martin Shkreli Reduced to Tears as He Now Faces Years in Federal Prison; Barack Obama Reportedly in Talks to Become Netflix Producer; Police in California Report of an Active Shooter in a Veteran's Home in Napa County; Kenya Political Rivals Now to Put Feud Behind Them; Saudi Arabia Energy Minister Says the New York Stock Exchange could be a Risky Venue for its State Oil Company's Market Debut. Aired 4-5p ET
Aired March 09, 2018 - 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 (ph) my friends. As usual, it marks the end of yet another trading day on Wall Street. Pretty
solid day today on the stock market (INAUDIBLE) the NASDAQ ended at a record high, the Dow also ended up 348 points or so off the back of this
really, really, bright and shiny jobs report that we've got; 313,000 jobs added.
Well the jobs but also not that much in terms of wage growth, the stock market did seem to like that.
It is by the way the bull markets' birthday and it's also a very, very special day for us here on QUEST MEANS BUSINESS because it's also my
colleague and mentor, Richard Quest's, birthday.
(CHEERS)
(APPLAUSE)
ASHER: A very special day here, happy birthday Richard Quest, a date you should all remember, Friday, March the 9th.
Tonight, the art of the nuclear deal, (INAUDIBLE) it could host the talks between Donald Trump and Kim Jong-un; also, records are tumbling once again
on Wall Street after a strong jobs report that I just mentioned; and the "Pharma Bro" breakdown, Martin Shkreli is reduced to tears as he is
sentenced to several years in prison.
Hello everyone, I'm Zain Asher and this my friend is QUEST MEANS BUSINESS.
All right everyone, welcome everyone, I'm Zain Asher so, as I just mentioned stock markets have just closed sharply (ph) higher at the end of
another I guess truly historic week for the Trump administration.
The Dow is up more than 400 points, 440 points also so, rally comes after the jobs report that proved that the American economy basically added
313,000 jobs in February specifically, this by the way is the strongest month of jobs growth in Donald Trump's presidency so far.
The markets have responded with a triple-digit gain but as I should also mentioned, it has certainly been a volatile week, just 24 hours ago the
president did fulfill personal campaign promise that he talked about quite a bit in 2016, tariffs aimed at stopping steel and aluminum dumping; you
remember that he signed that just yesterday, the announcement caused chaos inside the White House, and actually cost Gary Cohn, the top economic
advisor inside the White House his job as well.
On Thursday night, this is big, an unprecedented announcement, President Trump accepted an invitation to meet North Korea's Kim Jong-un by May, and
that my friend is where we begin tonight with our, Will Ripley who joins us live now from Seoul.
(BEGIN AUDIOTAPE)
So, Will, when you think about this in context, OK North Korea has threatened United States repeatedly and now all of a sudden Kim Jong-un
wants to meet. What is the catch there?
WILL RIPLEY, CNN AWARD-WINNING CORRESPONDENT BASED AT CNN'S TOKYO BUREAU: Well this is something that the previous two North Korean leaders wanted as
well, Kim Il-sung and Kim Jong-Il both tried at different points of their respective rules to normalize relations with U.S. to try to set up meetings
with sitting U.S. presidents, this is something the North Korean leaders have always wanted.
And Kim Jong-un from the moment he took power, his strategy appeared to be to bolster his nuclear program and then eventually come to the table from a
position of strength, comes to the negotiating table from a position of strength.
And frankly yes, there have been crippling sanctions, there is the -- there is the looming threat of military action by the United States perhaps you
know, more so, than any other president, President Trump was you know, seriously considering a Phase Two military option as he called it.
But at the end of the day Kim Jong-un will be meeting -- will be the first North Korean leader to sit down face-to-face as equals, with the U.S.
president, he gets the legitimacy, the optics, of that kind of a meeting.
The potential benefits if it goes well of concessions, of lifting of some of these sanctions, and it could be a historic turning point for North
Korea or if the meeting goes badly, it could lead us down a completely different path.
So, we you know, there is -- it's -- this has been a roller coaster, who would've thought 24 hours ago Zain, that this would be happening but here
we are.
ASHER: Right and so, who deserves credit here, is it Donald Trump that perhaps his scare tactics really did work or is it Moon Jae-in and his
Sunshine Policies, what do you think?
RIPLEY: I think actually all of the stakeholders involved deserve a little bit of credit here. President Trump's maximum pressure campaign, the
sanctions have definitely pushed North Koreans to the point that they're realizing if the sanctions continue there could be serious damage to their
economy, not to mention Trump's unpredictability in terms of whether or not he would actually attack North Korea.
Previous U.S. presidents, the North Koreans always knew military option wasn't really an option they didn't know that with Trump.
Moon Jae-in here in South Korea, he is really proving his diplomatic skills and he does deserve a considerable amount of credit for keeping the North
Koreans engaged after they opened the door for talks in January, kept the momentum going through the Olympics and but was also able to maintain good
relations with the United States, to make United States feel that South Korea was still going tough you know, you heard President Moon on one hand
engaging with the North Koreans but also saying that the sanctions and the pressure and the military deterrents should continue.
[16:05:15]
And then frankly Kim Jong-un also deserves credit here for the fact that despite the insults that were hurled back-and-forth with President Trump on
both sides he was able to kind of brush that aside or allies strategically that a meeting with the United States is something that would benefit his
short- and long-term interests because obviously a war with the United States would -- could potentially undo him and it would also be just be
catastrophic for all parties involved.
And if he can -- if you can actually make something happen in this meeting it could be a turning point for his country as well, normalizing relations
with the U.S. to reduce his dependence on countries like China and Russia and it could be a great thing for the North Korean people as a whole if he
was able to make that happen.
So, he was able to brush aside the emotion of it all, make a calculated strategic decision and that's what we now see unfolding here.
Now the big questions and there's a lot of skepticism justifiably so is this really the right time for a summit by May. Normally these things take
months or even years to lead up to it, there are lower level meetings, there are things that are worked out ahead of time, there is still three
Americans being in prison in North Korea.
Why didn't President Trump hold out and called for their release first before he agreed to sit down?
President Trump is basically he -- he's -- he's agreed to this meeting without having to give up anything -- without Kim Jong-un having to give up
anything, he basically just gave Kim Jong-un the top prize, the highest- level meeting that you can have with the United States and there hasn't been a whole lot of buildup to it.
So, that said President Trump is unconventional, he takes the -- he cuts through the bureaucracy, he does things, bold moves that other presidents
wouldn't even consider and that probably Zain is why Kim Jong-un decided that now was a time to make this kind of an offer.
I was describing it, it was like a Hail Mary pass that Kim Jong-un threw and Trump could not resist, catching that ball and running with it and now
we all just have to wait and see where the heck it goes from here.
ASHER: And Trump really sees himself as the ultimate, negotiator, he loves being able to achieve things that no one else has even come close to.
(END AUDIOTAPE)
All right, Will Ripley live for us there thank you.
So, much (ph) so, the president aids are already calling this 'the art of the nuclear deal' and it is certainly unconventional as Will just talks
about there, it brakes with decades of U.S. foreign policy and as Will also mentioned as well, the stakes could not be higher.
The past 70 years there's been a hostile standoff as you know, between Washington and Pyongyang, as well history suggests Mr. Trump would be right
not to exactly trust the other side of the negotiating table, the Kim's dynasty has promised talks and denuclearization in the past and then they
have secretly continued with its weapons program as well.
There's also been some pretty bad blood between the two parties, we've seen their spats on Twitter as well, the North Korean state media has called Mr.
Trump, 'a lunatic human reject' and Mr. Trump has called Kim, famously, 'little rocket man.'
And the American side could also be short-staffed as well, that's another potential problem as currently no U.S. ambassador to even North or South
Korea but White House Press Secretary, Sarah Sanders insists that the president will be ready.
(BEGIN VIDEO CLIP)
SARAH HUCKABEE SANDERS, PRESS SECRETARY, WHITE HOUSE: Look, the president has an incredible team that is surrounding him both from national security
advisers, Secretary of Defense, the Secretary of State, the intelligence community, the -- at the end of the day the ultimate person to lead that
negotiation -- or that conversation and be at the table, will be the president.
(END VIDEO CLIP)
ASHER: All right, my next guests worked closely with Joseph Yun who was the top U.S. diplomat to North Korea before he resigned earlier this month.
Abraham Denmark is the Director of the Woodrow Wilson Center Asia Program, all right thank you so much for being with us, Mr. Denmark.
(BEGIN AUDIOTAPE)
ASHER: So, here's the thing, as a journalist it is my job to be skeptical of course, just walk us through what are the risks with this particular
meeting? Is it a trap? How do we know that the North Koreans are really as serious as they say they are?
ABRAHAM DENMARK, DIRECTOR, WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS, ASIA PROGRAM: We -- you've asked all the key questions there.
This is going to be an extremely long process. This is a very difficult negotiation, it's stymied American diplomats for decades.
Even if the president and Kim Jong-un do in fact meet and are able to somehow come to some sort of agreement about a way ahead, the scheduling,
the timing of these negotiations is going to be very difficult.
Who goes first?
Does the United States start to give concessions to North Korea or does North Korea starts to roll back its nuclear program in exchange for those
concessions?
These are the sort of issues that we've -- we've had a lot of challenges with and as you said there's a lot of risks.
Either the United States may risk giving something away, the -- even meeting with the president is seen as a big political win for Kim Jong-un.
[16:10:02]
And of course there's the danger that these talks could fail and that the president who has said that the United States could not accept a nuclear
North Korea may after talking to Kim Jong-un, if these talks fail may just say diplomacy is not working, we have to go to Option Two which would be a
fairly devastating military option.
ASHER: Isn't it interesting just in terms of concessions, even before the meeting, Kim Jong-un has already in a way offered, I'm not saying that he's
agreed to give up a lot but he's offered the potential of giving up a lot, including denuclearization, demilitarization, stopping missile tests you
know, it's fine if the Americans continue sanctions while the negotiations continue to take place.
Isn't that -- does that strike you as slightly strange?
ABRAHAM DENMARK, DIRECTOR, WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS, ASIA PROGRAM: Well you -- we need to read closely what the South
Koreans have said that Kim Jong-un has put on the table. So, far what he has put on the table is one, freezing these nuclear and missile tests which
have been made illegal by the U.N. Security Council, multiple times.
And has said that these U.S.-South Korea military exercises could continue and they are actually happening quite regularly anyway, when as the South
Koreans described it, when Kim Jong-un did say that nuclear weapons may be on the table when talking with the United States, he said that they're --
would only -- they would only need to have nuclear weapons, they'd only be willing to give up the nuclear weapons if the United States removes the
military threat.
And in the past that has meant an end to this alliance between the United States and South Korea --
ASHER: Yes.
DENMARK: -- and the withdrawal of all military forces from South Korea, which has always been a nonstarter.
So, it's unclear if North Korea's position has changed, it's unclear if President Trump is a willing to change the position that the United States
has had for several decades, we'll see what happens as the president often likes to say.
ASHER: And Abraham, here's the thing, President Trump hasn't really had any foreign-policy experience when it comes to negotiating. I mean
obviously he's negotiated business deals, this is very different because the stakes are much, much, higher.
When you think about the timing, they've talked about -- they want to have this meeting by May so what does that mean, that means seven, eight, nine,
weeks from now?
I mean is that really enough time to prepare someone who has had no foreign-policy negotiating experience whatsoever?
DENMARK: Look, if the meeting does happen before May as was announced last night, it's -- means that it's going to be cram-time at the White House of
getting everybody ready, diplomats preparing out where the meetings will take place, what they're going to talk about, and it's - it's - it might be
difficult but the White House may already be walking that back a bit saying that they will meet with Kim Jong-un at a time and place of their choosing
but also potentially saying that they might not even meet with Kim Jong-un until they've made significant steps towards denuclearization.
So, it's very unclear when this meeting may take place, if it may take place but they certainly open the door for it.
ASHER: President Trump just keeping everyone on their toes as usual.
All right, Abraham Denmark, thank you so, much, appreciate that.
(END AUDIOTAPE)
ASHER: OK so, let's talk a little bit more about how the stock market actually did this week, they're carrying this whole optimistic tune into
the weekend, as I mentioned earlier the NASDAQ, that is the green line here closed at another record high, indeed it was up about 1.5 percent today.
It is fitting because we are celebrating today the bull market's birthday, it actually all began, when was it Paul? Nine years ago --
(BEGIN AUDIOTAPE)
PAUL DONOVAN, GLOBAL CHIEF ECONOMIST, UBS WEALTH MANAGEMENT: Nine years ago, March 9th --
ASHER: -- 's-- It is my favorite person --
DONOVAN: -- 2009 --
ASHER: -- Richards birthday as well --
DONOVAN: -- is it now.
ASHER: -- today.
DONOVAN: That is fitting.
ASHER: March 9th.
DONOVAN: One of our biggest bulls, definitely.
ASHER: So, just -- just walk us through the fact that the NASDAQ ended the day at a record high. It really does show that despite all the volatility
we've seen over the past month or so, investors continue to be so, enthusiastic when it comes to Tech stocks.
DONOVAN: Yes. Despite some concerns about valuations maybe getting a little high the earnings growth is obviously there and that's really what's
been driving Tech higher, the fundamentals.
When you look at the NASDAQ it's led by big companies like Microsoft, Amazon, they've both hit record highs today and I think investors expect
that that's going to continue.
Netflix is another one, even though it's really pricey, Netflix is doing a great job --
ASHER: Great job.
DONOVAN: -- with streaming media, Jessica Jones Season 2, tonight, I'm excited.
ASHER: It was up about, what was it?
Netflix was up about 70 percent --
DONOVAN: 70 (INAUDIBLE) and it's already -- and it's already up another 65 or so percent this year, it's -- it's amazing, how well it's doing (ph).
ASHER: When you think about the fact that it's the bull market anniversary today you know, even though we've had these major -- headwinds you know,
the past few weeks or so why has this bull market ended up being that much more resilient than you know, we probably expected?
DONOVAN: Yes. I think a lot of it then comes down to the economic data being still very strong and as a result you've had good earnings also.
I know you're going to talk a little bit more with another guest but jobs report but obviously that help boost stocks today, clearly people excited
by the big jobs gains, a little bit of a slowdown in wage growth which might be better for --
[16:15:06]
ASHER: Yeah, but they're happy about that aren't they?
DONOVAN: They're happy about --
ASHER: (INAUDIBLE) --
DONOVAN: -- that because it's less inflation, the Fed may not have to raise rates four times this year but yes, we've got really strong gains
across the board in all these different sectors, its blue-collar jobs, white-collar jobs, and that's great for America.
ASHER: Production (ph) -- even retails are up (ph).
DONOVAN: Yes. That's it (ph).
ASHER: So quickly line Lloyd Blankfein announced that he is stepping down from Goldman Sachs (ph) --
DONOVAN: He did --
ASHER: -- (INAUDIBLE).
DONOVAN: -- not, well he did not. That's --
ASHER: So --
DONOVAN: -- the thing, no --
ASHER: -- He got words (ph)?
DONOVAN: -- Here we go.
ASHER: He got words.
DONOVAN: "The Wall Street Journal" reported that he will be stepping down at the end of the year.
ASHER: The end of the year.
DONOVAN: CNN MONEY has confirmed that if that's the case two deputy CEOs are in line to potentially succeed him but with -- this news got very crazy
and intriguing at the end of the day because Lloyd Blankfein tweeted just before the market closed, "It's the WSJ's announcement, not mine. I feel
like Huck Finn listening to his own --
ASHER: Oh.
DONOVAN: -- eulogy."
ASHER: That is hilarious. But he did announce that -- we got it from "The Wall Street Journal" that they --
DONOVAN: He seems to be suggesting that --
ASHER: -- He didn't deny it.
DONOVAN: -- he's not going anywhere just yet. He didn't --
ASHER: He didn't actually deny it.
DONOVAN: -- he didn't deny it but --
ASHER: OK.
DONOVAN: -- but he just said, "hey, you know, don't bury me just yet." Come with (ph) the old Monty Python skit.
ASHER: But it's interesting though because Goldman Sachs stocks actually ended up, up (INAUDIBLE).
DONOVAN: With the rest of the market --
ASHER: Yes.
DONOVAN: -- it was hard to go down today.
ASHER: Yes. They -- it dipped initially when we got the announcement but they ended the day higher. There you see it dipped in the middle of the
afternoon, right here.
All right Paul, thank you so much.
DONOVAN: Have a great weekend. Thank you.
ASHER: Have a good weekend.
(END AUDIOTAPE)
ASHER: OK so, the U.S. has logged its best month of job gains in more than a year and a half, the treasury Secretary says, "It shows the Trump agenda
certainly having an effect."
All that and more, next.
(COMMERCIAL BREAK)
ASHER: All right, and as I mentioned earlier a strong jobs report sent stocks surging on Wall Street. Just take a look at the numbers here we had
313,000 jobs added in February. That number certainly stellar, because that is the strongest jobs report we've gotten since mid-2016.
The unemployment rate, where is that?
That's right here, 4.1 percent, that's held steady, that is (ph) actually a 17-year low; wage growth ticked down slightly but overall the trend though
is still positive and the participation rate spiked as thousands of job seekers actually came into and actually entered the market.
The U.S. Treasury said, "Those numbers show that the president's agenda, is actually on track," listen?
(BEGIN VIDEO CLIP)
STEVEN MNUCHIN, SECRETARY, US TREASURY: Obviously very impressive, further evidence of the president's economic plan working and are really what has
been our number one goal to create sustained economic growth in the economy, create higher wages, and create more productivity.
(END VIDEO CLIP)
ASHER: All right, as I -- as I mentioned that strong stellar jobs report, 313,000 jobs added in February, actually it was enough to send stocks up
all around, let's have the green lights please?
There we have it. And the NASDAQ by the way, at a record-high, so, let's update that.
[16:20:01]
NASDAQ up about 0.5, come closer so you can see, what's this? So, that should be now 14 because we love to keep track of that, they're (INAUDIBLE)
business and that is by the way the first record for any of these indices since January because as we've been talking about here, there's been so,
much volatility so, so much to talk about here.
Randall Kroszner served as the governor of the Federal Reserve, he joins us live now.
(BEGIN AUDIOTAPE)
ASHER: Randall, good to see you?
RANDALL KROSZNER, FORMER MEMBER, BOARD OF GOVERNORS U.S. FEDERAL RESERVE SYSTEM & CHAIRMAN, U.S. FEDERAL RESERVE SYSTEM, COMMITTEE ON SUPERVISION
AND REGULATION OF BANKING INSTITUTIONS: Great to see you.
ASHER: So, let's talk a little bit more about this jobs report because --
KROSZNER: Sure.
ASHER: -- because the stock market really was in love with this jobs report, we ended the day up more than 400 points and that is because the
numbers themselves in terms of jobs were pretty solid, I should say very solid but wage growth wasn't enough to spook investors about how frequently
we could see interest rate hikes.
KROSZNER: Exactly and so, since this is sort of a best balance report you could have from the Fed's point of view means you're getting continued
strong growth overall and particularly strong employment growth but muted wage pressure.
Now at some point though wage pressure is likely to be there and hopefully we will see productivity growth that will then lead to more wage growth and
the key is will the wage growth be driving inflation or will it -- will the wage growth being driven by productivity growth which won't cause the Fed
to have to move faster.
ASHER: And just in terms of this tariff, I could ask you about the tariff announcement because President Trump signed it just yesterday and he talks
about implementing it within 15 days.
But seeing such great momentum when it comes to jobs but if these tariffs end up going into effect which of course I believe they will be at this
point, what effect could that have on the broader job market, do you think?
KROSZNER: It really depends on exactly how it's implemented. You know, first we heard that there would be no exceptions now there's some pretty
big exceptions and then there may be --
ASHER: Canada, Mexico.
KROSZNER: -- some -- and there may be some other exceptions that come in for particular industries --
ASHER: The E.U. is asking for exception as well.
KROSZNER: -- and then there may be particular industries that will be asking for acceptance for certain types of specialty steel et cetera and
so, we'll have to see how important this is for effecting (ph) the industries and the overall economy.
If there are enough exceptions, it's not going to have that much of an impact.
ASHER: Just in terms of the actual unemployment number 4.1 percent, 17- year low, how much longer we'll continue to see these pretty solid job numbers, how much more room is there to run, we've got it up on a screen
right now, so it's 313,000 jobs added in February; unemployment -- I mean this is pretty much a full employment economy, how much more room is there
to continue the -- add jobs at this pace do you think?
KROSZNER: Well the labor force participation rate went up which is great, that means more people should have been engaged in the job market looking
for jobs and getting jobs. We are still at a much lower labor force participation rate today than we were at the peak 10 years ago and so,
there could be more room to run there if there are enough incentives to get people off the sidelines and back into the labor force.
And that's really going to be the key into whether there's going to be much wage pressure and how much more room to run there is.
ASHER: I just wonder it's so fascinating that you know, it was really pretty much almost in every sector. We had construction doing well, and
retail --
KROSZNER: Across-the-board.
ASHER: -- retail which everyone has been just so --
KROSZNER: Yes (ph) --
ASHER: -- worried and thinking --
KROSZNER: -- forget (ph).
ASHER: -- about (ph), they did well as well.
KROSZNER: Yes. I think --
ASHER: It's the weather, partly the weather.
KROSZNER: -- Well, there are always but when I was at --
ASHER: -- we can always expect the weather.
KROSZNER: -- Exactly. When I was at the Fed, every month it was always due to weather --
ASHER: The weather.
KROSZNER: -- good weather or bad weather. I said well you know, we know what the weather was we could just go (ph) take that out whether it was
good weather bad weather.
ASHER: Oh yes.
KROSZNER: So there always some of that and you don't want to put too much emphasis on anyone month's number --
ASHER: OK (ph).
KROSZNER: -- but I think we've - we've been seeing a pretty, clear, solid, continued growth in the labor market without a lot of wage pressure.
The key is the next step, are we going to see a lot more investment that comes because of the tax reform and because of the regulatory changes. If
that happens, we get more investments, we get more productivity growth, ridges will start to grow a little bit more rapidly but that won't put
pressure on the Fed because that's fundamental economic growth, that's not just a wage pressure inflation.
ASHER: All right, Randall, always good to see you. Thank you so much. Have a lovely weekend.
(END AUDIOTAPE)
ASHER: OK so on to our next story here.
Scott Paul says the fears of a trade war -- we've just been talking about trade, Randall and I, fears of a trade war are overblown. Scott is the
President of the Alliance for American Manufacturing, speaking with me just a short time ago, he said, "The Trump administration is putting the focus
where it belongs, on China."
(BEGIN AUDIOTAPE)
SCOTT PAUL, PRESIDENT, ALLIANCE FOR AMERICAN MANUFACTURING: I think it's premature to call this a trade war. The administration is taking targeted
trade actions for steel and aluminum. They've made clear that Mexico and Canada would be initially exempt and that other nations, particularly
allies would be welcome to have conversations with the United States about a process moving forward.
I think the much more likely outcome of these tariffs is to stabilize the global steel and the global aluminum industries, to turn attention to where
it belongs which is the government of China.
[16:25:05] And I don't see this escalating into a trade war that would have deleterious impacts for consumers all over the world, I don't see that
happening.
ASHER: All right, sewer even though the -- you know, you're right, President Trump did say that you know, there's wriggle room for allies in
terms of negotiating an alternative however if the E.U. doesn't end up being exempt there's talks about the possibility of retaliating. Why
doesn't that concern you?
PAUL: So again, I think we have a long way to go and we're prejudging the policy. As it stands right now the stated goal of the United States is to
ensure that our steel and aluminum industries and our workers are able to protect American security.
I know that our allies want -- will want to assist us in that effort and I think that there will be a series of detailed and serious conversations
between our government which will be led by trade ambassador, Robert Lighthizer and his colleagues and I believe they're going to be starting
this weekend about how to accomplish that.
At the same time, I think it's important for our allies to understand that blank checks shouldn't be written. We're in this together but there are
certain expectations and right now the United States has been bearing the load of all of this global overcapacity in steel.
Where the largest - the world's largest leading importer of steel. We've suffered more job losses. It's cause greater disruption to our industries.
We need others to step up to the plate and help address this problem.
ASHER: As you know, especially during the campaign trail one of Donald Trump's main sort of goals was to make sure that any sort of tariffs that
he imposed did address China first and foremost. Do these particular tariffs really do enough to go after China?
The U.S. Commerce Department in terms of their figures, they said that only two percent of America's steel imports actually come from China, so what
more could be done on that front?
PAUL: Yes. These tariffs address China in three ways.
First as you mentioned directly, China is the 11th leading importer of steel into the United States.
Second these tariffs address China indirectly; China ships steel to places like Vietnam, Korea, Malaysia, where it's transshipped to the United States
so these tariffs would help to stop that.
And the third China's over-production of steel which is massive, it has hundreds of what I would call zombie steel mills that make steel that
nobody needs or wants but has an impact on global prices and creates a supply glut.
And so, the broad-based tariffs are going to help the United States protect against that.
I expect other governments will step up. And look at Beijing, we're already seeing some evidence of that in places like Australia, where the industry,
the workers in steel are calling on their government not to necessarily attack the United States on trade but to look at anti-dumping problems
coming from China.
I think you'll see that replicated around the world because everybody will make steel knows that, that's what's the problem is, it is not the United
States and these --
ASHER: Yes.
PAUL: -- tariffs Beijing and their practices and the tariffs will begin to have their intended effect.
(END AUDIOTAPE)
ASHER: Right, New York could be missing out on the biggest oil deal in history. The Saudi energy minister tells us, he has big concerns about
choosing Wall Street as the venue for the Aramco IPO.
(COMMERCIAL BREAK)
[16:30:00] ASHER: Hello everyone, Zain Asher coming up on the next top hour of QUEST MEANS BUSINESS. Martin Shkreli is reduced to tears as he now
faces years in federal prison.
And from commander-in-chief to producer-in-chief, the Obamas may be coming to Netflix. First though, these are the top headlines we're following here
at this hour.
Plus, the White House says Donald Trump will not meet with North Korea's leader Kim Jong-un until the country takes concrete actions on its
promises. Mr. Trump agrees to talk to Kim Jong-un after Kim say he's committed to denuclearization.
Both men said it could provide again needing space, but stop short of the burning, and has actually offered to host the talk. Nearly 200 British
troops are now assisting in the probe of mysterious poisoning over Russian double agents.
Beggy Skripal and his daughter were found in a park bench on Sunday, they're hospitalized and in very serious condition. Western intelligence
sources consider Russia leading suspects based on the sophistication on the nerve agent used.
In California, police say there's an active shooter and a hostage situation at a Veteran's home in Napa County. About 1,000 older veterans live in the
home and it's the largest of such in the U.S., local media say a gunman has taken three people hostage.
And big step. Political rivals in Kenya came the other Friday to send the message -- descent stops here. President Uhuru Kenyatta and opposition
leader Raila Odinga made a joint television address earlier, it came as U.S. Secretary of State was heading to the country.
Right, Saudi Arabia's energy minister says the New York Stock Exchange could be a risky venue for a state oil company's market debut. Stock
exchanges around the world have spent months competing to host what is shaping up to be the biggest IPO in history.
With the small money though seemed to be on London, New York or maybe even Hong Kong. Now, the kingdom's oil minister tells our John Defterios why he
has big concerns about a potential New York listing.
(BEGIN VIDEO CLIP)
KHALID AL-FALIH, ENERGY MINISTER, SAUDI ARABIA: We believe we need to invest in our partner's growing sectors while attracting them to invest and
grow with us in our own growth sector.
So we've done that with the U.S., over many decades we've invested in the U.S. as much as American companies have invested in Saudi Arabia. It is
central to our strategy with China to cross-invest, and it is appropriate to do it here.
Because the U.K. industries need to grow abroad, they cannot only grow here and Saudi Arabia will be a great destination for them. But we want to also
selectively invest in the U.K. where there's a profitable gross opportunity.
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: It's longer than the pole position, a sense where the round core IPO is really eager to get the
listing here, but most importantly showing the flexibility that's required for a state-run company.
And does it have to have a western listing in your view to be a success?
AL-FALIH: Well, the London Stock Exchange, you know, is one of the best in the world, it's well-regulated and we respect it. It has great many
companies including the oil and gas sector that are listed here.
National oil companies as well as IOCs, and certainly from the beginning, it's been a contention, it remains to be in contention for the second
listing venue. The only thing we know today is that the Dow will be the key listing location as our national exchange, and we're waiting for the
reforms to be in place and to join them as CI.
And a round core listing into Dow will be catalytic for that capital market as we bring international capital into the kingdom.
[16:35:00] DEFTERIOS: Is that legislation in America, the just legislation that has the vulnerability to actually hurt New York, but --
AL-FALIH: I wouldn't --
DEFTERIOS: Call for a reconsideration by the kingdom?
AL-FALIH: I wouldn't say legislation, but I would say litigation and liability are a big concern in the U.S. We've seen five IOC companies main
food for, you know, frivolous climate change allegations that just throws a lot of risk and to a company.
And quite frankly, Saudi Aramco of course, too big and too important for the kingdom to be subjected to that kind of risk. But New York continues
to be looked at, London continues to be looked at, other exchanges are being looked at and in due course, we will announce what the listing venue
is.
DEFTERIOS: We have this $2 trillion evaluation in the mind of the crowned prince. At the end of the day, sir, this -- the market decide what their
true evaluation is.
AL-FALIH: Absolutely. The evaluation is for the markets to decide we will simply need to make sure we present what the company brings to investors in
terms of value creational opportunities which I think are not yet fully understood by the investment community.
(END VIDEO CLIP)
ASHER: Right, joining me now is John Defterios; emerging markets editor. So John, obviously, the Saudis have talked about litigation, liability
being a major potential issue, for them a major risk factor.
Based on your interview there, how concerned should New York really be?
DEFTERIOS: Well, I know Al-Falih did not want to spend the bulk of his time during the interview talking about Saudi Aramco and the listing. But
his language was very blunt when it comes to the options on the table for the kingdom of Saudi Arabia with either London or New York and raising the
specter of litigation.
He was making a reference during the interview of the international oil companies and a lawsuit by New York state for environmental damages. But
also in the back of their minds, they have to be thinking of the legislation called Jester(ph) which would undermine sovereign immunity are
going back to the 9/11 victims and those attacks.
And perhaps opening up Aramco to that vulnerability. Now the New York Stock Exchange of the World Economic Forum, a senior executive has
suggested we don't want to bend over backwards for anyone including Aramco.
And I'm sure this is front and center in the thinking for Aramco as well. If we have the options on the table, we have to consider everything in the
bouquet if you will, London has the depth so does New York, it also has the cache and the prestige.
And I think this was a shot across bow by the minister ahead of the visit by the crown prince and the entourage before they come to the United States
and visit with Donald Trump and make a trip to the West Coast at the same time.
ASHER: So do we have a sense of the timeline going forward in terms of making decisions by?
DEFTERIOS: Well, the minister did suggest to me, Zain, they've finished their 2017 audits, they also have updated their proven reserves over 260
billion barrels. So their mandate was to be ready for 2018 and we were expecting something on the second half of the year.
It was a nuance response by the minister and also the CEO and other senior officials on the delegation tour here and London suggesting we don't need
to live by an artificial deadline. So reading between the lines here, it would not be a surprise to see the spill over into the first half of 2019.
He did say directly to me, the number priority is making sure that the oil price is correct so we can get the highest evaluation. That is of course
the number one priority because it's the price in Saudi Arabia having the proven reserves.
And also having the market understand it's not just an oil producer but also a refiner and one that has strategic relations in Russia, China, South
Korea and Japan. And they think they need to play out that narrative for international investors at the same time.
ASHER: All right, John Defterios, thank you so much, have a great weekend. All right, still to come here on QUEST MEANS BUSINESS, the Wu-Tang Clan
said that cash rules everything around me. For Martin Shkreli, that mantra led him to fraud, costing his one of a kind Wu-Tang album and now landed
him a seven-year prison sentence.
[16:40:00] (COMMERCIAL BREAK)
ASHER: Right, welcome back everybody. The pharma bro, as he's known, Martin Shkreli was actually sentenced to seven years in prison on Friday
for defrauding investors. Unrelated to the controversy that made him famous -- remember this, when he inflated the price of a life-saving drug
as a CEO of a pharmaceutical company.
Shkreli's trademark's smug was actually a face by tears as he pleaded with the judge leniency. Clare Sabastian is here, so Clare, we were just saying
a second ago that this is a very different Martin Shkreli because normally he's quiet smug, he's got an attitude -- as I mentioned he's known as a
pharma bro, he's got boisterous attitude.
But this time, we actually saw him cry, and he said listen, I have nobody to blame for the mess I'm in, but me.
CLARE SABASTIAN, CNN CORRESPONDENT: Absolutely. I mean, previously, he used to cry this entire case as a witch-hunt of epic proportions. He said
that, you know, he's basically been defined throughout. Today, he said he was sorry, he said he's made poor judgments, he said he's made gross,
negligent, stupid mistakes.
I want to read you one particular interesting comment that he made, he said, "there's no conspiracy to take down Martin Shkreli, I took down
Martin Shkreli with my disgraceful and shameful actions, this is my fault."
So this is very much a sharp turnaround for the man that we've seen live streaming his life on social media who offered $5,000 to his Twitter
followers for a look of Hillary Clinton's hat --
ASHER: Right, can I just compare --
(CROSSTALK)
SABASTIAN: Back in September, the man who said $2 million reported to the owner on a Wu-Tang Clan of a kind while none refused to -- so if you listen
to the whole thing. So I think, you know, this is a very much to taste Martin Shkreli, and of course now, he heads to prison for seven years.
ASHER: Now ahead, Wu-Tang is your favorite band.
(LAUGHTER)
OK, so here's the thing. He actually got seven years --
SABASTIAN: Yes --
ASHER: So it was half-way between what the prosecution and the defense is asking for the defense, actually wanted a year and community --
SABASTIAN: Yes --
ASHER: Service, prosecutors wanted about 15 years or so --
SABASTIAN: Fifteen years, yes --
ASHER: OK, so the judge just went smack-down in the middle.
SABASTIAN: Well, this is very much what security people who are expert in this kind of white-color crime, tell me it is very much at the judge's
discretion in this case. What the prosecution were arguing was obviously this very serious crime, securities fraud is a very serious crime,
conspiracy was another count.
The defense said, you know, he didn't actually inflate any losses on his investors. Not only that, but he wanted to do good for humanity, he's been
doing good in prison, and that you know, he deserves less time as a result of that.
At least but not, you know, as serious as they were made out to be by the prosecution. So this was basically from a legal perspective, it wasn't a
huge surprise from people that I've speaking to, but certainly the notarizing around this case is something that, you know, has hunted the
past.
ASHER: And I think what's interesting really is just that, you know, all of this is unrelated to the case that made him famous, and I would say made
him haters in pop culture. Which is that he inflates the price of an AIDS drug --
SABASTIAN: Yes --
ASHER: For about -- what was it about, 5,000 percent? --
SABASTIAN: Right --
ASHER: Just incredibly bold if you will, and a lot of people said selfish really, greedy as well. So all of this is, I think it's important to help
our viewers, all of this is unrelated to that particular incident.
SABASTIAN: Yes, exactly, that's when he first, you know, was catapulted into widespread notarizing, he was back in 2015 when he inflated the prices
as you say of a drug called Daraprim which treats toxoplasmosis commonly used in AIDS patients from $13.50 to $750.
He said all along of course, that, you know, patients who needed it would be able to get access to it at a lower price, and that he was going to make
sure of that.
[16:45:00] But that is what kind of bothers him. You see, the interesting thing though is that had he not been the poster child for this issue of
inflating drug prices in America, would it have become such an issue going forward?
You remember he testified in Congress, there were other scandals that followed with, you know, Valeant and then Mylan; the maker of EpiPen, this
is something that Donald Trump has taken off in his own FDA, the issue of inflated drug prices in America.
So I think that is something of a legacy that he leaves as he goes to prison.
ASHER: Right, Clare Sabastian live on set, thank you so much.
SABASTIAN: I appreciate that.
ASHER: Enjoy your weekend, listen to good sounds --
SABASTIAN: Yes, we'll do.
ASHER: All right, some news just entered CNN. President Trump will attend the Summit of the Americas in Peru next month, and that's according to a
White House official. U.S. leaders have typically attended the summit, it was unclear whether President Trump would go given some of his
controversial comments about immigrants to the United States.
All right, still to come here on QUEST MEANS BUSINESS, Donald Trump's time in television certainly helped him own the presidency, Barack Obama's time
in the presidency may actually earn him a job in television.
We'll be slaying what's the deal after the break.
(COMMERCIAL BREAK)
ASHER: Right, welcome back everybody. As the Nasdaq hits the record high, Netflix has also post out of record as well. Shares are up 17 percent so
far this year, and more than 1,100 percent -- incredible over the past five years.
Mr. Obama -- President Obama, I should say and Michelle Obama are in talks with the company, that is according to a source familiar with the
discussions. The former president may moderate a new series or serve as the executive producer on a Netflix show.
CNNMoney's Dylan Byers has been speaking with sources on both sides of the negotiation, he joins us live now from South by Southwest in Austin. So
Dylan, so just walk us through this because we know that President Trump -- President Obama has always been sort of interested in media.
This is a huge win for Netflix. Just walk us through what we know about the venture and the deal in terms of financial terms as well.
DYLAN BYERS, CNN: Sure, well, like you said, we happen to talk to sources on both sides of these talks and what they tell us is that this deal is
very close to being finalized. What the Obamas want is they want to use Netflix as a platform to basically advance the ideas, the issues and some
of the individuals that matter to them.
But this is not a political play, this is not a platform to, you know -- you know, fight back against President Trump and the efforts he's made to
roll back the Obama agenda. It's not an effort to promote democratic candidates, it is an effort to sort of elevate the conversation as Michelle
Obama famously said "when they go low, we go high", focus on inspirational stories.
For Netflix, it is an extraordinary get from a business perspective. The entire Netflix business right now, given how much debt that they have.
[16:50:00] Which is, you know, $20 billion to $25 billion, their business is subscriber growth, domestically and more important internationally.
Obama -- the Obamas collectively are global rock stars. They are global celebrities possibly without parallels.
So having them on board is the kind -- is the kind of talent acquisition that could drive major growth and keep Netflix going in the right
direction.
ASHER: Yes, Netflix as you know has been focused on rapid expansion. They plan to spend, what is it? Eight billion dollars or so in 2018 on
programming alone. So how does the Obama venture fit into this wide obsession with expansion?
BYERS: Right, it's a really good question that Netflix try to do right now is basically throw everything against the wall and see what sticks. I
mean, you know, honestly, I live in Los Angeles, you drive down Sunset Boulevard, the amount of billboards for new Netflix shows popping up all
the time is crazy.
No other media company, old or new is turning out shows at the rate that Netflix is. What Netflix also knows is that you can't just turn out, you
have to invest in talent that people know, that people recognize and in projects that people are going to get excited about before they even get
released.
There's no talent that fits that bill better than the Obamas. There's obviously a lot of enduring enthusiasm about the Obamas, it's obviously a
great deal of interest in what the Obamas are going to do next and how they're going to sort of leverage that popularity in terms of driving
change during the Trump administration, certainly after the Trump administration.
So a lot of people paying attention to what they do. There's a lot of enthusiasm over an interview that President Obama did with David Letterman
on the Netflix platform.
I think the Obamas see that as a sort of vehicle to advance their own issues, yet thinks they care about Netflix, sees it his way to drive
subscriber growth.
ASHER: So Netflix has their own venture, the deal bomb there, and you I hear, Dylan, have your own adventure as well. You've got this news that
are coming out called Pacific, I want our viewers to now look at more about it so they can subscribe as well, sell it to us, you've got about two
minutes.
BYERS: Sure, absolutely. We -- and it's focused exactly on this, which is this sort of intersection between technology, media, all of the change
that's happening in the world and it's really been driven by the West Coast. You have so many influential individuals and companies, companies
like Amazon, Apple, Google, Facebook, Netflix, Disney, they're driving so much of the change that we are seeing in the world.
They're part of a conversation about where we are going in terms of the future of artificial intelligence, augmented reality, media and
entertainment, healthcare, philanthropy, everything.
That is a discussion, it's taking place out in California, Seattle, where we want to cover it from California and Seattle. It's a newsletter, it
shows up in your inbox every morning about 7:00-7:30, gives you -- keeps you up to speed and gives you analysis on what's going on with these
influential news makers and the companies that they run.
ASHER: All right, Dylan Byers, last -- to our audience. If you want to subscribe to Dylan's newsletter, you heard him say it there, all you have
to do is go to CNNpacific.com, CNNpacific.com, said it again.
All right, Dylan, thank you so much, appreciate that. And according to a senior adviser, one of the big reasons President Obama is considering a
Netflix series is because he believes in the power of storytelling to really inspire.
Tonight, we are shinning a spotlight on a group using the power of filmmaking, things by a change and help and discuss of human slavery as the
world prepares to mark my freedom day.
We meet the project's founder Tony Schiena.
(BEGIN VIDEOTAPE)
TONY SCHIENA, CHIEF EXECUTIVE OFFICER, MOSAIC: What freedom means to me is opportunity. Those who lack opportunity lack freedom. My name is Tony
Schiena, my organization is Mosaic Federation. Mosaic Federation was started by myself and the then head of human trafficking for Scotland and
Europe(ph).
The TSA expose came out of a media initiative that we decided is necessary, and since I come from the defense industry, that's what we call a soft
operation. Mainly it's propaganda or anti-propaganda.
And that was something I was never really into. I wanted to bust stores down. And when I thought about what we used to do in the past and thought
how important it was, we decided to create this.
So the expose is a worldwide campaign. And finding engaged filmmakers, wanna-be filmmakers, student filmmakers in creating a 30 to 92nd TSA,
public service announcement on human trafficking and their other environments.
Their own town, village, country. Hey, how are you? Where are you based? Where are you right now?
UNIDENTIFIED MALE: Well, I'm watching from the Philippines to Vancouver and about eight years ago.
SCHIENA: Where did you shoot it, in India?
UNIDENTIFIED FEMALE: Yes, I'm in Mumbai in the swamps -- Mumbai actually, can be done.
UNIDENTIFIED MALE: We wanted to show it people that it's happening not just in the third world, it's happening in major cities in North America.
[16:55:00] UNIDENTIFIED FEMALE: Raising awareness is key because we do have the power to stop modern-day slavery, we just need these people to
bring this issue to the politicians.
UNIDENTIFIED FEMALE: Wait because I'm hurt.
UNIDENTIFIED FEMALE: Mama?
SCHIENA: Participants can find out the expose, these on our site which is humanslavery.com, time this opportunity on March 14th is our PSA expose on
human trafficking, they can submit it and the Hollywood board of luminaries will see their product, we'll judge their product and will hopefully give
them an opportunity.
(END VIDEOTAPE)
ASHER: All right, and CNN is actually partnering with young people around the world for student-led, their action against modern-day slavery, that's
going to be on March 14th.
So we want you guys at home to tell the world what freedom means to you. We'd love to hear from you. All you have to do is share your story -- on
Twitter for example using the hashtag, my freedom day.
And by the way, I'll be hosting special coverage of my freedom day next week on both Tuesday and Wednesday, and start it all up, our Richard Quest
is going to be hosting QUEST MEANS BUSINESS live from Atlanta Airport on Tuesday where the airline industry is really trying to take action to help
stop human trafficking as well.
All right, my friends, it is QUEST MEANS BUSINESS on March 9th, Quest's birthday, I'm Zain Asher, have a great weekend, see you soon.
(COMMERCIAL BREAK)
END
