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QUEST MEANS BUSINESS
Trump, Xi Offer Dueling Visions of Trade; Brexit Date Set as Talks Struggle; South Africa's Central Bank Warns of Challenges; Questions for the Russian Billionaire Linked to Manafort. Aired 4-5p ET
Aired November 10, 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] BIANNA GOLOGRYGA, CNN HOST: U.S. service veterans ringing the closing bell as U.S. markets, Veteran's Day and Europe prepares to mark
Armistice Day. It is Friday, November 10th.
Role reversal. President Trump lays out a vision of economic nationalism as China's president insists globalization, well, that's here to stay. A
date, but no deal insight. Negotiations in Brussels struggle as Theresa May faces turmoil in her government. And time to get confidence back. The
head of South Africa's reserve bank says economic growth is suffering. He'll join me with more.
I'm Bianna Gologryga and this is QUEST MEANS BUSINESS.
Tonight, a reshaping of global trade on full display. Donald Trump is closing doors to the United States on his trip through Asia. Xi Jinping is
opening up, however, making it easier for foreign companies to invest in China. Meanwhile, no breakthroughs in the Brexit talks, and it's throwing
Britain's future trading relationship with Europe into doubt.
Let's start in Vietnam, where President Trump brought his trademark lines of America first to the Pacific Rim leaders. Saying their trade practices
have hurt American workers. Seated before him, the very leaders to just a year ago were negotiating a massive 12-nation trade deal with the U.S. Now
they're going on without the U.S. But in break with tradition, Trump said foreign leaders were just doing their jobs, and that his own predecessors
were to blame.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I wish previous administrations in my country saw what was happening and did something
about it. They did not, but I will.
(END VIDEO CLIP)
GOLOGRYGA: Sara Murray is at the APEC Summit in Da Nang, Vietnam. And is joining me now. Sarah, first of all it is very late there so hats to you.
Thank you for joining us. So many people here in the U.S. were focused on what would come out of this trip. The president seemed to surprise many,
though, when he blamed his predecessors about the current situation. How was it received there?
SARA MURRAY, CNN WHITE HOUSE CORRESPONDENT: Well, I think people were surprised in part because it's a very different tone then what candidate
Trump took. He obviously blamed China. He blamed other nations for these trade imbalances. So, I think when you look at the backdrop here, it can
be a little unnerving, especially to countries like Vietnam. I mean, he delivered these remarks here in Vietnam at this APEC summit, and Vietnam is
a country that has benefited from these multilateral agreements. So here the president talked like this, talk about wanting to do bilateral trade
agreements. Wanting to get a better deal for the U.S. That's certainly unnerving to some of the countries present.
But I also think you have to remember that this is the president delivering his tough on trade talk in Vietnam. Not in China, where he was just a day
ago, with President Xi Jinping, someone he has gone after when they're farther away, talking about the trade imbalance with China. But when
they're right next to each other, when he is in Beijing, he does not make these same points. So, it's a tough on trade message on much safer ground,
as far as the president is concerned.
GOLOGRYGA: Yes, some people are questioning whether that's a tactical skill or maybe it's just easier to say tough things about another leader
when you're thousands of miles away as opposed to in their country. Obviously, another issue that people were focused on was whether or not the
president would be meeting with Russian president, Vladimir Putin. Thus far, no meeting. Just a handshake, correct?
MURRAY: That's right. And there's always a lot of jockeying around the U.S. and Russia trying to set up meetings like this. They're always a
little bit tense. There are always negotiations. But this one is weird because the president left for this trip saying he expected to meet with
Russian President, Vladimir Putin. A senior administration official earlier this week said they expected the top topic to be North Korea, and
pressing Russia to step up efforts to further isolate this nuclear country.
So, the fact that the White House then came out and said there's no chance that this formal bilateral meeting is happening. They're going to have a
handshake, maybe they'll have a pull-aside along the way. That was a little bit odd. Now the president leaves the country in about 12 hours.
There's still time for one of these pull-aside meetings, but obviously, something like that, you have more limited time and a more limited agenda
of topics that you can go through.
[16:05:00] GOLOGRYGA: Yes, you heard Rex Tillerson say that he questioned why there would even be a meeting if they didn't have specifics to discuss.
And when it comes to business relationships and trade the president's top business advisors and economic advisors are here in the U.S. working on tax
policy, as well. So, they weren't traveling with the president. Overall, though, would you count this -- or from what you're perceiving there from
median the ground that this is a positive trip for the president?
MURRAY: Well, I think overall this a president who is very unscripted. Who is known for speaking off-the-cuff. He has mostly made it through this
trip without any gaffes, which I'm sure is a big relief to people at the White House. He hasn't come away with any huge deliverables. You know, he
announced a few of these business agreements in China. But other than that, there's no huge headline coming out of this trip. And that could be
part of the reason they scrapped the possibility of this bilateral meeting with Putin. If the president and Putin sat down, if it went anything like
the last time they met and dragged on for hours and hours, that's a story that gets a lot of scrutiny. And perhaps not the headline they want when
they leave a trip that they feel like has gone pretty smoothly.
GOLOGRYGA: Well, we shall see what happens tomorrow in Vietnam. Meantime, please go get some sleep, Sara, you've been very busy. We appreciate it
GOLOGRYGA: And just moments after president Trump spoke, a very different tone from President Xi. The leader of China's Communist Party delivered a
strong defense of open trade.
(BEGIN VIDEO CLIP)
XI JINPING, CHINESE PRESIDENT (through translator): Over the last few decades, economic globalization has contributed significantly to global
growth. Indeed, it has become an irreversible historical trend. In pursuing economic globalization, we should make it more open, more
inclusive, more balanced, more equitable and more beneficial to all.
(END VIDEO CLIP)
GOLOGRYGA: And that's not just rhetoric. China announced steps to open its finance industry to the world, saying it will allow foreign companies
to own Chinese banks and investment firms. Jamie Metzl is a senior fellow at the Atlantic Council and former executive vice president of the Asia
Society. Jamie, great to see you. Thanks for coming in. So, what do you make of this sort of role reversal when it comes to the two leading
superpowers in the world in terms of trade?
JAMIE METZL, SENIOR FELLOW, ATLANTIC COUNCIL: Well, in terms of trade, in terms of America's standing in the world, and in terms of the security and
stability of the world, it's really just a terrible and dangerous side. If the president of the United States is stepping away from a free and open
trading system, is stepping away from America's historic role of underpinning peace, security and stability in the world, it's great if
China is stepping forward verbally. But we need to see actions by China that back those words. So, I think on one hand it makes a lot of sense for
President Xi to step into this vacuum that President Trump has created by abrogating America's responsibilities.
But somebody needs to play that role in the world. And so, I foresee a lot of difficult situations, not just in U.S./China relations, but around the
world. Because America is stepping back in many ways from a role that we've played for 70 years.
GOLOGRYGA: And let's step back ourselves, a year ago, when the U.S. under President Obama negotiated TPP, if for no other reason than to put extra
pressure on China. Right? China's economy from all international perspective and all international economists' perspective, was starting to
slow, though continue to grow. So this seemed to be a double gift for Xi that he really took advantage of.
METZL: Donald Trump is the greatest gift to China in many generations. And for President Trump to go to Vietnam, a country that the United States
has been developing relationships with for decades after our very painful history, and we brought Vietnam into this agreement with Trans-Pacific
Partnership for the TPP. And reformers in Vietnam wanted to use TPP, not only to reform their economy, but to tie themselves to us, and to Japan and
to other more progressive countries in the region. And for now, President Trump, to go to Vietnam and say we're all about America first and American
sovereignty, it's really just a slap in the face of Vietnam. And to do that coming out of China, where President Trump was fawning over Xi
Jinping, it's really -- I don't know a better word to use than disgraceful.
GOLOGRYGA: Yes, it is baffling if you go back to president Trump on the campaign stump saying that China was raping the U.S. Right? And now his
tactic has shifted. Many say it's because he wants to get China on board when it comes to reigning in North Korea's nuclear program. Do you think
that's a smart move on the president's part?
METZL: I don't think he's going to get anything out of North Korea. And we see in the debate domestically there are many different -- and
unfortunately, definitions of rape -- of what rape is. But Donald Trump doesn't seem to have a very good understanding of it. Because if he was
right, that China was taking advantage of us and certainly they were through massive thefts of intellectual property and other transgression,
the way to stand up to China is to say, look, here is what we are going to do. Here is how we are going to rally our allies and partners and friends.
And that's what TPP was all about.
[16:10:00] But to jettison TPP and to have a strategy of just going to China and being -- and being part of this empty pageantry and then assuming
that Xi Jinping, out of the kindness of his heart, is going to do a deal with the United States on trade or that China is going to make a tough
decision on North Korea. When China has already made a strategic decision that they would rather live with an armed and hostile and nuclear-armed
North Korea than with a Korean reunified Korea potentially allied to the United States. It's just really unfortunate.
GOLOGRYGA: And a newly empowered President Xi Jinping, as well, coming out of the congress leadership meeting. For now, at least, he controls all of
the power in the country for the foreseeable future.
METZL: China is as strong as it's been in many generations. America is as weak as we have been in many generations.
GOLOGRYGA: It is a fascinating role reversal to follow. We appreciate you joining us. Have a great weekend. Thank you.
And U.S. stock markets closed flat on Friday. The Dow and S&P ended slightly lower, ending their eight-week rallies.
Bill Tuchman is a floor broker four Quattro M Securities. He joins us now from the New York Stock Exchange. Great to have you on. As we see the Dow
closing down just under 40, what happened today?
PETER TUCHMAN, FLOOR BROKER, QUATTRO M SECURITIES INC.: You know what, look, we had the whole tax reform problem yesterday get pushback into 2019.
The corporate part of it, right? Obviously, this market has been up on a lot of the hopes that this tax reform bill would go through. So, I think a
showing of down 200 yesterday, closing down only 100, and today being as low as down 70 and closing down 40, the fact that it's slightly red, a
little red on the screen, is not that big a deal. I think this is actually a really good show for a week that could have ended up quite weak and quite
anxious and quite nervous.
GOLOGRYGA: So, let me ask you. The president says he wants a tax bill on his desk around Thanksgiving. Wants something to deliver to Americans by
Christmas. If that does not happen, where do we see the Dow?
TUCHMAN: You know what, I think the market will break a bit. As we saw the anxiousness over the tax reform pushed back until 2019. I think the
fact is, what's keeping the market solid is that even though the corporate thing is being pushed back, the rest of the bill feels like it's going to
get done by Thanksgiving. And that's was supporting the market here.
GOLOGRYGA: Peter Tuchman, always great to have you on. It's been years since I saw you in person. I don't know what you do, but you don't age.
TUCHMAN: thank you so much.
GOLOGRYGA: Bottle it up my friend.
TUCHMAN: All right.
GOLOGRYGA: Have a great one.
TUCHMAN: Respect to the veterans, guys. They're here on the floor.
GOLOGRYGA: Absolutely. Our thanks and hats off to the U.S. veterans.
This next story is baffling. Forget black Friday, cyber Monday and even Amazon Prime Day. This is the biggest shopping day of the year. Have you
heard of it? Well, in just two minutes, $1 billion -- that's right, in two minutes, $1 billion in sales on Alibaba's Singles Day. The shopping
bonanza in China is now closing on $13 billion in sales. Clare Sebastian is tracking the numbers. Clare, China, China, China, every single segment
seems to be on China right now. The momentum's in their favor. I never even heard of the Singles Day. But this is taking advantage of people who
are literally single, without a spouse How is it working?
CLARE SEBASTIAN, CNNMONEY CORRESPONDENT: Well, that's how it started, it was a holiday. Basically, an anti-valentine's day type holiday in China
that was for people who were single. And Alibaba came in 2009 and basically turned into one of these made-up shopping holidays. It's like
Amazon Prime, just a lot bigger. In fact, in two minutes, they may be the equivalent of this year's Amazon Prime Day. So, it really is a huge event.
And also, I think the comparison of Amazon Prime Day is instructive in another way. Because that is really just all about the deals. This is
about entertainment as well. They held a star-studded countdown gala in Shanghai with Maria Sharapova was there, Nicole Kidman, Pharrell William
was singing. And, of course, you have the very flamboyant Jack Mar starring in his own short kung fu film at this event as well. So, they
like to combine entertainment with shopping. And that's how they do it. That's their formula.
GOLOGRYGA: It's really mirroring how we go out in this country, and in Western economies, as well, when it comes to advertising, when it comes to
marketing. You've got the world's largest communist country really learning and taking a page from how we market in Western economies.
SEBASTIAN: Yes, and I think that's a big part of it. This day is not just about the paid advertising, but, of course, all of the free advertising
that comes with it. From all of the coverage that surrounds it. But it's interesting, because they have another focus. And they use this day to
kind of present their vision. There are a very visionary company. And one of their big focuses this year is to kind of integrate physical retail with
online retail. Obviously, they've already cornered the bulk of that e- commerce in China. But they are trying to integrate it with physical retail.
[16:15:00] They have been trying to put some of China's convenience stores in rural communities online. They have smart stores that have been put out
by 100,000 different brands in China. And this is really interesting, because it's what we're seeing in America, as well. Physical retail
obviously is in a lot of trouble at the moment. But you also see some of these digital native brands like Amazon is the biggest example, coming in
and trying to, you know, find the balance where physical retail isn't dead, but it's just about balancing it with e-commerce. And it's interesting we
see that from Alibaba.
GOLOGRYGA: It's just the wee hours there right now. We're looking at some $24 billion dollars in sales by the end of the day?
SEBASTIAN: That's what Citigroup is predicting. I think were at 12.8 or so right now. Just five hours in.
GOLOGRYGA: Think of all those people with their smart phones. All you have to do is press one button.
SEBASTIAN: A lot of it happens on mobile.
GOLOGRYGA: Incredible. Great to have you on. Thank you.
It's been 504 days since the Brexit vote, and there's another 504 days to go until Britain leaves the EU. We're in Brussels next, where another
round of talks has concluded without a breakthrough.
GOLOGRYGA: Brexit is now just 504 days away. Theresa May says the U.K. will leave the European Union at precisely 11:00 p.m. local time on March
29th, 2019. The sixth round of Brexit negotiations wrapped up today in Brussels. It was actually 504 days ago that the U.K. voted to leave the
EU. And here's where we stand at the halfway point. There is still no agreement on three key issues. And it's gumming up the works. The rights
of the EU citizens living in the U.K. Britain's exit bill. And how to handle the border with Ireland without progress here, EU negotiators are
refusing to talk trade, which is a top priority for the U.K. The EU has given Britain two weeks to say how much it's willing to pay when it leaves.
U.K. Brexit secretary, David Davis, says they are making progress.
(BEGIN VIDEO CLIP)
DAVID DAVIS, BRITISH BREXIT SECRETARY: Our European partners will not need to pay more or receive less over the remainder of the current budget plan
as a result of our decision to leave. The U.K. will honor the commitments we have made during the period of our membership. We're making clear
progress in building a common technical understanding on every item here.
(END VIDEO CLIP)
GOLOGRYGA: Bianca Nobilo joins us now from Brussels. Bianca, great to have you on. So, it looks like a lot of talk not much action.
[16:20:00] BIANCA NOBILO, CNN PRODUCER: That's definitely a good way to describe it. These have been talks about when they're going to be talking
about more talks. There's just so much words and so little action. When we look at it, David Davis in that sound bite that you just played,
indicated that maybe a bit of progress had been made on the bill, but the EU didn't seem to echo that sentiment. So basically, we have two weeks
left until the seventh round of Brexit negotiations. That's happening on the 29th of November.
If there isn't a big shift then, if big progress isn't made, then it means we can't move on to the second stage of Brexit negotiations in December.
And that is going to set off the entire timetable for these negotiations. It's already been delayed, because the U.K. wanted to have moved into the
second phase in October, and they're already running behind, Bianna. So, yes, a lot of talk, not enough action and a deadline fast approaching.
GOLOGRYGA: Yes, and you're starting to see a lot of frustration from EU members. How much of a hindrance are domestic problems in crises having
for Prime Minister May? You've got two cabinet secretaries who've had to leave in just the past eight days. Is that distracting at all from
focusing on Brexit talks?
NOBILO: Obviously, we can't say for sure. But I imagine it is causing a lot of concern for the Prime Minister and also David Davis, the Brexit
secretary. He's a very influential and important member of the cabinet. And given the level of instability that exists in the U.K., David Davis
can't go away and have as many Brexit talks as he wants to. Because it imperative that he returns to the U.K. for critical votes, and to be with
the Prime Minister. Because her majority is wafer thin. She's only got a working majority of 13. And not only has she lost those cabinet ministers,
Bianna, that you referred to, but also her first secretary of state, Damion Green, who is the de facto deputy prime minister, is also under
investigation. So, it's a huge amount of pressure on her.
I think one of the only stabilizing forces in all of this is the fact that the Labour Party, the opposition party, is also under the same kind of
pressures with these scandals. So, there hasn't been a big push for an election from them. But certainly, I wouldn't be surprised if it taking
her eye off the ball a bit. And, in fact, I was at the press conference today with the EU and the U.K. negotiators, and the EU negotiator, Michel
Barnier, was asked whether or not he was concerned about the political situation in the U.K. And he said he was monitoring it extremely closely.
Which is a little further than sometimes we see the EU go. But very, very cautious about what they say about member states and usually don't make any
comments whatsoever. So, they're definitely keeping an eye on that situation.
GOLOGRYGA: Well, this process does seem to make the U.S. Congress look productive, and that's not saying much. So not much news coming out of the
EU and Brussels today. Bianca, always great to have you on.
And business leaders from the U.K. and Europe are preparing to meet with Prime Minister May on Monday. They are expected to press her on the need
to reach a Brexit transition deal, and soon. Lord Karan Bilimoria is founder and chairman of Cobra Beer. In an article for the new statesman,
he warns about the dangers of leaving the EU without a deal. And he is joining us live from London. Great to have you on, Karan. So, talk about
why this is so stressful, the uncertainty in particular for the business community.
LORD KARAN BILIMORIA, FOUNDER AND CHAIRMAN OF COBRA BEER: This is a really uncertain time for all businesses in the U.K. Many businesses are holding
back investment, holding back hiring people, because they just don't know what's going to happen. There's huge uncertainty in the political
environment in Britain, the Conservative Party doesn't have a majority. The two cabinet ministers have just gone in the space of a few days. The
Prime Minister of course, reacts to this today. Saying that in this great repeal bill that is going through Parliament, where we're trying to take on
all the European Union legislation in advance of Brexit.
Businesses are very worried. Parliament is worried, because in there are what we call Henry the 8th clauses, which allows the government to push
through legislation without the consent of Parliament, which is very dangerous. It's a danger to democracy. And then on top of that today
Theresa May has announced she that wants an amendment to this bill that will make Parliament agree that whatever happens, Britain will leave on the
29th of March 2019, at 11:00 p.m. This is ridiculous to force these issues, because on the other hand, one of my cross-bench colleagues, Lord
Kerr, who is actually the author of Article 50, has said today very clearly that he believes that Britain can unilaterally decide not to withdraw from
the European Union if it decides to.
GOLOGRYGA: Yes, article 50, the so-called divorce rule. There is something that caught my eye. I'd like to get your thoughts on the so-
called Brexit bravado. That some are claiming that leaving the EU without a deal could be advantageous, while risky. What's your reaction to that?
[16:25:00] BILIMORIA: The whole of business without a doubt, and I speak to audiences around Britain, and I will almost without fail ask them, how
many of you think we should remain in the EU? And almost 100 percent of the hands go up. So, to a business community in Britain that is
overwhelmingly against leaving the European Union, the thought of leaving without the deal would be the ultimate nightmare scenario. I mean, Europe
makes up 50 percent of Britain's trade at our doorstep. And on top of that, we have trade deals through the European Union with another 17 to 20
percent of trade with the rest of the world. So, to sacrifice that almost 70 percent of our trade around the world would be hugely damaging to
business and to Britain's exports and imports. So, we would be very worried about a no deal situation.
To fall back on the WTO rules is not that easy. It would be very costly. And Britain's economy would suffer hugely. Already, as a result of Brexit,
we're now the slowest-growing G-7 economy. Before Brexit, we were the fastest growing Western economy and we were flying. So, Brexit has
affected us very badly already, let alone if we have no deal.
GOLOGRYGA: Thanks in large part to that uncertainty that has clouded over the country and the economy. You're in a unique position, both with your
role in government and in business. From your vantage point, do you see any kind of possibility where the business community, together with
government, and these 504 days, which seems like a long time, but from a business perspective, really isn't, that you can forge some sort of deal
BILIMORIA: It looks extremely unlikely, on a practical basis, that is possible. Here we are, all these months after Article 50 was imposed in
March, and we haven't even finished phase 1 of the negotiations. The Irish border issue. The good Friday agreement was such a big landmark after
years of troubles in the Northern Ireland, where now it's Northern Irish, British citizens have dual nationality, most of them with Ireland. There
is a free border. And to think of imposing a border there would jeopardize the whole good Friday agreement.
European citizens' rights in the U.K., we have 3 million of them here. Without them we would have a labor shortage. Ask then the contribution to
the European Union, their figures are 50 billion euro up to 100 billion euro. Would the British public accept if the divorce bill is as high as
that? When the average contribution to the European Union at the moment is about 8 billion pounds a year. So, the single market business wants to
stay in the single market. We want to stay in the Customs Union. But then the -- all sorts of things are attached to that. So, it's not going to be
easy. And then you come up against a deadline. So, if crashing out with a no deal, that's out of the question. The negotiation is getting on to the
next stage where Britain wants to in terms of discussing the trade deal. We haven't even got anywhere near that and the clock is ticking.
GOLOGRYGA: Yes, it does make me think of Rahm Emanuel's famous line, you never let a good crisis go to waste. One thing maybe from an optimistic
standpoint, that there is little left for the U.K. and for the Prime Minister than to come up with a solution as the deadline nears. It will be
really interesting to see what comes out of that meeting on Monday with the business leaders. Lord Bilimoria, thank you so much for joining us.
Well, European stock markets finish lower on Friday trading. The London FTSE fell nearly 1 percent. Paris CAC, Frankfurt DAX and Zurich SMI all
fell around half of 1 percent.
Investors imagine a new hope for Disney. The force is with its stock after the announcement of a new "Star Wars" trilogy. Disney closed more than 2
percent higher Friday, despite earnings missing expectations. CNN Money's Frank Pallotta is tracking the developments. A lot of headlines involving
Disney this past week. What is going on with the company in terms of its potential deals that we have seen negotiated in the past, and "Star Wars"
and future deals in the future?
FRANK PALLOTTA, CNNMONEY MEDIA REPORTER: Well, it's been a very odd week for it. A few days ago, reports came out it was in talks with 21st Century
Fox to buy up a lot of its assets. Now the way to really look at these report is to think not about right now, but where the company is
potentially going over the next decade.
It's talked about a streaming service, which is supposed to debut in 2019. If it's say these 21st Century Fox deal is something that is actually real,
it could buy up a lot of the IP that it has, such as X-Men and Marvel and Avatar. It fits very seamless into the Disney vault, that they could
actually put into their streaming service. And take away from competitors like Netflix and Hulu.
Now, you've obviously talked about one of the biggest brands that it owns, which is actually ironically, which it got from 20th Century Fox, which is
[16:30:00] And yesterday during the earnings call, everyone was kind of decidedly, nah, about the earnings. And then they announced this new
trilogy that is actually going to succeed this trilogy we are in right now. And bring out new characters from different parts of the "Star Wars"
GOLOGRYGA: So what are investors looking for and most excited about? The company really relying on past? Like "Star Wars" coming forward? Or
venturing into new potential, you know, unknowns with regards to mergers, technology, acquisitions going forward.
PALLOTTA: I think it's a little bit of column A and column B. I think investors are really looking to see they can take these past products that
have been around since the late '70s, something like a "Star Wars," and see if it can be integrated into the future of the median entertainment world.
"Star Wars" is a huge brand. It brought -- it was bought for $4 billion, from Lucas Film in 2012. The first film in the series that Disney
produced, "the force awakens" in 2015, made over $2 billion. The last film made over billion. "The Last Jedi," which comes out next month, is
probably going to make close to that same amount. Now it's with what's next. How are you going to incorporate this into whatever is coming in
terms of streaming? They're talking about a live action "Star Wars" series for their streaming service. So, it's about a mixture of past, present and
GOLOGRYGA: Yes, well, my 5-year-old was Luke Skywalker for Halloween this year.
PALLOTTA: I almost was. I came this close.
GOLOGRYGA: Don't let a good thing go to waste, I guess is their model.
PALLOTTA: Fair enough.
GOLOGRYGA: Great to have you on, thank you.
After the break, CNN questions the Russian oligarch. You're not going to want to miss this. At the center of the Trump campaign, the Kremlin
[16:33:55] GOLOGRYGA: Hello, everyone. I'm Bianna Gologryga. There's more QUEST MEANS BUSINESS in a moment. When President Trump meets
President Putin. And CNN tries to meet the Russian billionaire linked to former Trump campaign manager, Paul Manafort. You'll see the encounter.
And the head of South Africa's reserve bank warns the government must win back confidence. He will join me live.
Before that the headlines this hour. Comedian Louis CK has admitted has admitted that sexual misconduct allegations against him are true. And he's
apologizing. A day after the "New York Times" reported accusations from five women. The release of his latest movie has been scrapped, and Netflix
has cancelled plans for a second standup special.
French officials say three Chinese students are hurt after being deliberately hit with a vehicle outside a high school. The driver was
arrested after the collision. The interior ministry says the incident does not initially appear to involve terrorism.
[16:35:00] The mainstream U.S. Republican Party is distancing itself from Alabama senate candidate Roy Moore after a "Washington Post" report
alleging he initiated a sexual encounter with a 14-year-old girl when he was 32. And pursued sexual relationships with other teens. The senate's
Republican campaign arm has now severed ties with Moore. Moore says the allegations are completely false, and politically motivated.
A newspaper report says former White House adviser, Mike Flynn, was allegedly offered millions of dollars to deliver a Muslim cleric wanted by
Turkey. The "Wall Street Journal" says Flynn's son was in on the offer as well. But it says there's no indication that money actually changed hands
or that any agreement was made.
Returning to the APEC summit in Vietnam. U.S. President Donald Trump and Russian President Vladimir Putin shared a handshake at the summit Friday.
The highly anticipated greeting between the two leaders came as they posed for a group photo. It's still unclear whether they will sit down for a
Accompanying President Putin to the summit, Russian oligarch Oleg Deripaska, the billionaire is linked to former Trump campaign chairman Paul
Manafort and former aide, Robert Gates, who are now facing charges in the U.S. CNN's Matthew Chance asked Deripaska questions about the ongoing
MATHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Oleg Deripaska arrived here at the APEC summit apparently deep in conversation with
Russia's president. And walking alongside of him, a sign of how close this Russian industrial billionaire to the center of kremlin power.
Deripaska is a key figure also, of course, in the ongoing investigation into links between the Trump campaign and Russia. A long-time business
associate of Paul Manafort, the former Trump campaign chairman, now indicted on money laundering conspiracy charges. Well, we took the
opportunity to put some key questions to the Russian oligarch.
Did Paul Manafort owe you millions of dollars when he was head of the Trump campaign?
OLEG DERIPASKA, RUSSIAN OLIGARCH: Fake news.
CHANCE: Real news. Just want the real truth. Did he owe you millions of dollars?
DERIPASKA: It's news for idiots. If you don't understand.
CHANCE: Did he offer those private briefings to you as a way to try to repay that debt, Mr. Deripaska? Can you just answer that please? t's a
big issue in the United States, sir. Did he offer you those private briefings to try and repay some of that debt to you? Is that why he
DERIPASKA: Get lost, please. Thank you.
CHANCE: Well, Oleg Deripaska refusing to address the question surrounding is a relationship with Paul Manafort. Off camera, though, he told me he
believed there was no Russian meddling in the U.S. presidential election, and that CNN is fake news. Both refrains of course that we have all heard
elsewhere. Back to you.
GOLOGRYGA: Matthew Chance, relentless there, by the way.
Meantime, turning to corruption in South Africa, it's hardly a shocking claim. The president himself has faced endless allegations. But now the
country's central bank says it is slowing the economy. I'll speak to the bank's governor coming up next.
[16:40:00] (COMMERCIAL BREAK)
GOLOGRYGA: The South African government needs to win back confidence from investors and businesses. That's the message from the governor of the
country's reserve bank. It is warned weak business confidence shaved one percentage off growth.
Lesetja Kganyago in speaking with investors in New York and he is joining me in the C suite. Great to have you. Thank you so much for coming and
taking the time. I know this has been a busy trip for you, what are you telling investors concerned about your country's economic stability?
LESETJA KGANYAGO, GOVERNOR, SOUTH AFRICAN RESERVE BANK: Basically, saying that South Africa is still open for business, and that South Africa is
still an important destination for investment. It is actually a gateway to the African continent.
GOLOGRYGA: When you look at a country, and you look at investment, you look for stability. Many don't see that right now when it comes to the
South African government in particular. Corruption charges. A lot of business leaders there not having much confidence and faith in the
president. From that perspective, do you see any changes coming soon?
KGANYAGO: Well, changes that have got to be changes, and then the big question that would come is, what should be done to restore business
confidence? Firstly, I think that they have been issues of corruption in the South African -- in the South African society. And that seems to be
giving an impression that the fact that you are not decisively dealing with those then it suggests we might not be applying the rule of law as we
should be. We should be -- we should be applying it.
We have got very strong institutions in South Africa, and those institutions need to doing their bit in tackling corruption. Secondly is
that as far as business is concerned, you've got to restore confidence. Restoring that business confidence, you're going to have to do more than
just dealing corruption, you got to restore policing and what that means is that in particular sections where there are outstanding policies or where
there is indecision by government, those decisions have got to be taken swiftly.
South Africa is fortunate, because in this environment, talking to investors here, I'm actually joined by CEOs of the top companies on the
Johannesburg Stock Exchange, and they are actually flying the flag of the South African society.
GOLOGRYGA: So, what are they optimistic about? Because you look at the number. You're seeing economic GDP growth declining. You're seeing
unemployment at 28 percent, almost 1/3 of the country is unemployed. So, what are these CEOs seeing that many outside investors are not?
KGANYAGO: Well, firstly, South African institutions are actually strong. And the problems that we are facing with respect to the economy at the
moment have to do with political and economic and policy uncertainty. And in terms of politics, many of the impressions coming from investors, what
do you actually expect to happen in the next few weeks after the conference? We actually expect to come out of that confidence a leadership
that is alive to the challenges that the South African economy is facing, that is alive to the policy challenges that the South African economy is
And that they would be able to tackle those challenges and set South Africa back on a path that it is known for, which is a path of prudent policies.
And more importantly, of a country that has diversity. And lastly, that we are a country that has actually conquered adversity before. That is what
makes these CEOs optimistic. Because they know what this country is capable of achieving. If we manage to mobilize the cross section of
[16:45:00] And so here you have got delegation made up of government and made up of business. And I f we are able to -- when we get back home, when
we tackle these issues, you involve the broader society that includes businesses and includes labor and includes government, we would be able to
conquer the situation.
GOLOGRYGA: Is President Zuma the right man to lead this endeavor in conquering the economic malaise right now?
KGANYAGO: The nice thing about being a central banker is that you disassociate yourself from the politics and forecasts on the economic
challenges of the country.
GOLOGRYGA: What more can this administration do as we talk, there's a lot of corruption at hand now he is a weak president. You've got unemployment,
which is something that the central bank really and largely focuses on. What can the government do to change the shift in tide?
KGANYAGO: Well, you know, governments play a very important role. Government it is then arbitrator of contestation in society. South Africa
needs to have structural reform. And if you have structural reform there are winners and there are losers. Without a doubt, society is always a
winner from structural reform. And now in managing the losers, it becomes crucial to understand what are the various interest groups in society, what
do they stand to lose, and that you need a government that is seen to be acting fairly as an arbitrator to manage that contestation in society to
effect the structural reforms understanding that when you effect structural reforms, in the immediate term there might be losers. But in the medium to
long-term society at large actually benefits from those structural reforms.
GOLOGRYGA: Quickly, the IMF is pushing for South Africa to launch reform plans, are those plans in place?
KGANYAGO: No, they are not in place as we speak now, they are captured in a broad vision of a plan called the national development plan. What needs
to be done now is to extract from the national development plan and say, these are the ones that we would like to do in the next few years. The
immediate things that would lead to stability. With respect to the mining sector and make sure that licensing takes place so
that mining companies can sink new companies. Reforms with respect to the energy sector allowing the renewables to come on board.
They have proved they can add to the nation and alleviate electricity problems that we have seen in the past. And those things are fairly
straight forward and could actually to immediate gains.
GOLOGRYGA: Kganyago, a lot of work ahead for your country but as you said you are a country that has overcome so much in the past, obviously a lot of
people are rooting for you to overcome the challenges your country now faces. Come back and join us again. Give us an update. Thank you.
Seven weeks after hurricane Maria devastated Puerto Rico, and help has been slow to arrive. Power generation returned to just 38 percent of pre-storm
levels on Friday. A massive outage struck San Juan on Thursday, and plunged the capital into darkness.
Meanwhile, other parts of the Caribbean were untouched by Maria and Irma, and now they're facing a perception problem. Richard spoke to minister of
tourism at the Bahamas at the World Travel Market in London. He insisted the Caribbean is open for business.
DIONISIO D'AGUILAR, MINISTER OF TOURISM, THE BAHAMAS: The Bahamas is 700 islands spread over 100,000 square miles. And the hurricane skirted the
southern Bahamas, hurricane Irma, which is very, very sparsely populated. Maybe 1500, 2000 citizens live down there out of the country of 350,000.
So, you do the math. Very, very little. The major population centers of Nassau, Grand Bahama, Freeport, Bimini largely unaffected.
RICHARD QUEST: So, in your case, one of your biggest challenges is perception.
QUEST: You know, the lights have gone out, and they haven't come back on and everything is wrecked and ruined.
D'AGUILAR: Absolutely. I think, you know, a lot of the media, no offense to your profession, of course, are successful when they create a bit of
drama. And the drama was that the Caribbean has been destroyed. It's been wiped out. And really, that's not the case. 75 percent of the Caribbean
were completely untouched by hurricanes.
Only 25 percent were. So, this is the message that you have to get out. And when you think of Bermuda, Bahamas, Barbuda, Barbados, people get
confused and they lump us all together. And this is the great challenge that we have to get out there. The Bahamas -- the Caribbean is open for
QUEST: Yes. But you see places like Puerto Rico which has been devastated.
[16:50:00] QUEST: And it's balancing that. And you see some of the St. Martin and the likes. So, I guess the viewer, or the tourist or the
potential visitor doesn't know who is and who is not?
D'AGUILAR: And this is where we fall down. And this is where we have to improve. The consumer is not familiar with the specific geography of the
Caribbean. And this is where we have to do a better job. We have to point out to them that there are many, many different nations spread over a huge
QUEST: So, what would you suggest the consumer does? Ring up and find out how? How does the consumer find out what's damaged, what's not? I mean, I
know the Caribbean Tourism Organization has been looking at this.
D'AGUILAR: Yes, well, obviously, we have to get the message out there. We have to get it on the major news agencies such as yours, when you're
thinking of a holiday, Google the country, see happened. Do your research. And certainly, if you booked a holiday, you can just call the resort, or to
inquire to see if airline is still flying.
QUEST: What does he Caribbean collectively for those parts that have been affected, what do you now need?
D'AGUILAR: Well, we need persons to come and visit the Caribbean. That's what we need. I mean, we need persons to do their research, inquire
whether the destination to which they want to go is still open and ready and available and travel there. I mean, we are one of the largest, warm
weather destinations with the most beautiful ocean in the world. Most beautiful culture and history. Do your research and come.
GOLOGRYGA: A big test for the Caribbean as the holiday season approaches.
Meantime today American businesses mark Veteran's Day. Tomorrow is Armistice Day. Meet the people helping soldiers find work after they come
home. That is coming up next.
GOLOGRYGA: The president of Hiring Our Heroes marking Veteran's Day at the Nasdaq's closing bell. The organization is working to highlight the tough
realities soldiers face when they return home. About half remain unemployed for at least four months after leaving the military.
Eric Ebersol is vice president at the U.S. Chamber of Commerce and the president of
Hiring Our Heroes. He first entered military service in 1994, and remains in the U.S. Navy Reserves. Erich joined just now live from the NASDAQ.
Eric, first and foremost, thank you so much for your service to this country. Thank you for reminding us that every day should be Veterans Day,
and that these men and women who risk their lives overseas deserve at least our help in finding a job to take care of the family here at home. Talk
about some of the progress you've made.
ERIC EBERSOL, PRESIDENT, HIRING OUR HEROES: We have seen absolutely tremendous progress over the last couple of years. Back in 2011, overall
veteran unemployment was 9. 9 percent. Today it's 2.7 percent for veterans. It's amazing work.
And it's really a lot of great private and public partnerships between the government, state and local agencies. Great business efforts and a lot of
great veteran organizations that work very aggressively to bring overall veteran unemployment way down from where it was six years ago.
GOLOGRYGA: And it's not just finding veterans jobs. You're also seeking jobs for you are all seeking job for their spouses, as well. Because in
most households in this country, for whatever recent cannot survive off of one income.
EBERSOL: That's exactly right. Unfortunately, we haven't made the same amount of progress for military spouses. They're still facing an
unemployment rate of 16 percent. That's four times the national average for women and, you know, we have to do more about it.
Because we're losing too many good experienced soldiers, sailors, airmen and Marines, because their spouses want and deserve a career. And it's
difficult to find for them sometimes.
GOLOGRYGA: For the overall employment situation, you hear from CEOs and those looking for work that there's an imbalance in placement for -- with
regards to the skill sets that many of these people looking for work have. And the jobs that are available. What are you doing? Because you hear
from the military that a lot of these people, a lot these servicemen and women, do have a lot of technical skills.
EBERSOL: Right. Well, you know, it's about making sure that we have the right size and the right fit, find out what a service member wants to do
and what is there passion. Make sure that they have the training. In many instances, before they get
out of the military, so they go right into that career field.
And that's a big aspect of what we try to do through our corporate fellowship program. We place transitioning service members before they get
out with companies, and we're seeing great success. 86 percent of our fellows were hired this year. With an average starting salary of in excess
GOLOGRYGA: Eric Ebersole, you're reminding us it not only makes business sense to hire this country's bravest and strongest men and women but it
also it is a humanitarian job, as well. Our hats off to you, thank you for your service.
And that is QUEST MEANS BUSINESS, I am Brianna Gologryga in New York, the news continues right here on CNN.