Canadian Hostage Killed by Philippines Militants; LGBT Magazine Editor Murdered in Bangladesh; Obama Orders 250 Additional Troops to Syria;



Editor Murdered in Bangladesh; Obama Orders 250 Additional Troops to Syria;

Trump: Cruz-Kasich Alliance "Pathetic"; India Revokes Beer Baron's

Passport; Bangladesh Bank Thieves Could Strike Again; Automakers Thrive in

China Despite Slowdown; Business Booming for Mercedes in China; China is

Now Biggest Market for Mercedes; Beyonce's "Lemonade" on sale on iTunes;

Beyonce Releases Surprise Album "Lemonade"; New Beyonce Album Sparks Debate

on Social Media; Oil, Week Earnings Push Down U.S. Stocks - Part 1>

Daimler Board Member, Greater China; Sian-Pierre Regis, Founder and Editor-

in-Chief, Swagger >

the government of India. Mallya owes $1.3 billion to Indian banks because

Kingfisher went belly up costing hundreds of people to lose their jobs.

The Bangladeshi government is trying to track down cyber-robbers who stole

$100 million from the Central Bank. John McAfee says that smartphones are

spy devices and can access the internet within the bank making them

vulnerable. Mercedes is selling more cars in China than anywhere else in

the world. People in China still have money to spend, plus a tax break on

auto sales is set to last until December. Beyonce has release a new album

"Lemonade" and is only available on Tidal for streaming. There is a black

narrative saying what do black women do when they are scorned, they make



RICHARD QUEST: Closing bell on Wall Street is ringing. Trading coming to the end of our Monday. The Dow has pared back most of the losses of the course of the day. Still down just a tad as I think we say that was a confident gavel on Monday. It's the 25th of April.


QUEST: Tonight, it's an economy that's going to be turned upside down as Saudi plans for life without oil. If you can't beat him, join forces against. Ted Cruz and John Kasich say they'll team up against Donald Trump. And when life gives you lemons, Beyonce gives you "Lemonade." Tidal gets a monster streaming exclusive.


QUEST: I'm Richard Quest. We start a new week together. And of course, I mean business.

Good evening. We begin tonight with saw Saudi Arabia and the oil kingdom's plans for life in the era of cheap crude and thereafter. Saudi's government is warning the country's dependence on oil as an addiction that's dangerous. And the solution is a sweeping 15-year plan to transform the economy.


QUEST: Join me at the super screens and you'll see exactly how they are aiming to do this. Now, if you just take the current level of Saudi as it stands at the moment 87% of government revenue comes from oil. This is the oil barrel. This is the country. It employs the best part of the 80% to 90% depending on the numbers, of people; citizens in Saudi are employed by the government. The private sector is relatively small.

Now as prices fall, the kingdom is going to run out of money in five years warning the IMF. Economic growth also slowing, there are social problems in the potential for unrest. So the plan hinges on growing the private sector, trying to introduce more companies and a six fold growth of non-oil revenue. They want to reduce the number of people employed by the government, possibly from 70% down to under 50% between now and 2030 which is the Saudi vision 2030 plan.

The government is going to invest in a variety of industries, including tourism, manufacturing, technology and interestingly, mining. And says it could live without oil in the foreseeable future. It is a bold, ambitious plan that relies on an IPO of Saudi Aramco, the country's oil company which we'll see in a moment, the size and scale. The Deputy Crown Prince Mohammad Bin Salman developed it and warned the risks of not actually doing it.

MOHAMMAD BIN SALMAN, DEPUTY CROWN PRINCE, SAUDI ARABIA: (As translated) The oil today became like constitution. The holy book, the (sunna) and the oil. And that is very dangerous. We have addiction to oil in the kingdom of Saudi Arabia. Everyone has it.


QUEST: Strong words for a country that's planning to use oil itself to wean the country off oil. It's going to put around 5% of Saudi Aramco, the vast oil up for sale in an IPO to investors. It could and would rank probably as the biggest initial public offering ever.


QUEST: Now, the proceeds of Aramco, this 5% will be put into the Sovereign Wealth Fund and it would be used, which obviously take it as the world's biggest, and it would be used as an investment fund for the future. The IPO values Aramco at $2 trillion.

Let's put that in perspective. That is more than five times more than the world's largest publicly traded oil company which is Exxon Mobile, or Mobil, which comes in at 363. So the prospect of just 5% of Aramco going in to a sovereign fund to be used for a diversification policy of Saudi Arabia towards a non-oil economy. CNN's Becky Anderson is in Riyadh. Becky, I've summed up the goal. Tell me, is it realistic?


BECKY ANDERSON, CNN ANCHOR CONNECT THE WORLD: Well, it is long on vision, slightly shorter on the detail. I have to say, Richard. The 30-year-old son of the king here, King Salmon, has spent past four years slowly consolidated power and convincing an older generation, his 8-year-old father included one assumes, that change is not only absolutely necessary for everybody here, but necessary for the country's future identity and success.



ANDERSON: He is known locally as Mr. Everything. And that is because he pretty much runs everything. From the massive state oil company Aramco, the world's biggest in terms of market capital to economic policy to the defense portfolio. Of course, he's defense minister, as well.


ANDERSON: So he certainly calls the shots. The headline to the vision as you rightly pointed out massive asset sales including 5% of the Aramco most likely they told us today in a dual listing in the states.


ANDERSON: And this as you pointed out will be the largest IPO in the world if it were to happen next year. And the plan is to throw Aramco's remaining assets into this enormous, enormous sovereign wealth fund and you pointed out that it was looking at around $2 trillion. Richard, they told us today, it could be nearly $3 trillion and they want to invest upwards of half of that in foreign assets. That will be a serious global shopping spree. Richard?


QUEST: Right. Now that just creates if you like, Becky, a portfolio of properties. Similar to the way Qatar has done it and similar to other countries. But in terms of fundamentally shifting their own economy to a non-oil, what do they go into? Mining? You can only have so much tourism. You know better than I do, Becky, that temperature is 40 degrees plus in the heat of the summer.

ANDERSON: Yes. So we're looking at tax increases. We are looking at spending cuts. They've been talking about fostering young talent. They have been talking about opening the country for business.

Look, Richard. The devil is in the detail. Aramco, for example, is Saudi policy. When it comes to oil, how do you split policy and production? It's one of the most secretive companies in the world, I'm told. Who wants a slice of a company which is less than transparent as experts suggest? Saudis are going to feel the pinch, Richard. They're going to say, if we support these changes and we get taxed, because at the moment don't forget there's a healthy dose of subsidies for everybody here, it's an entitled state to a certain extent, then should we get accountability?

I would suggest, Richard, this is much more about placing the face of the new guard, that being Mohammad Bin Salman in the context of what's going on here. 70% of people in Saudi are under the age of 30 and his message to us today as we gathered with him was simply this.


ANDERSON: I am one of you as far as youngsters are concerned in Saudi. I appeal to you, youngsters in Saudi, to support me of this and, Richard; he warned that things weren't going to be easy. He said that inflation would go up over the next couple of years. He said that there would be setbacks along the way. But he is pointing out that he has put together a road map for the next 15 years which would be he says transformative for both the economy and the society here. It is ambitious but if it works it certainly would be transformative.


QUEST: Becky Anderson in Riyadh for us this evening, thank you.

Now, the issue and the possibilities of what's likely to happen with the Saudi is the theme of my commentary tonight; my profitable moment on the CNN Newsletter. If you want to sign up to -- well, if you want to, you are going to, I hope. You want to read the blurb and the news of the day and my views of Saudi Arabia and this plan of Vision of 2030; it's at to subscribe.

Staying with oil for a moment, a push and a fall in oil prices all sent U.S. stocks lower on Monday.


QUEST: This was the worst point of the morning, down some 11%. There was a bit of a rally towards the close. The losses paired. Investors on the sidelines, they're waiting for a Fed meeting. Apple's earnings are delayed until Tuesday after the death of a former executive, Bill Campbell.


QUEST: Our Air Force One soon will be back across the United States air space as it concludes the U.S. President's foreign trip that largely aimed at strengthening trade ties.


QUEST: On his final stop in Germany, Mr. Obama toured the Hannover Trade Fair with the German Chancellor, Angela Merkel, and promoted "T-Tip." The proposed trade deal between the United States and the European Union.

A day before he arrived 35,000 people marched in protest of the deal out in the streets of Hannover. The President's trade agenda has also come under fire in the U.S. especially in the 2016 campaign trail. The U.S. President said he's optimistic it will get done.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Recent surveys in the United States, for example, showed that actually the majority of people still favor trade. They still recognize on balance that it's a good idea. During presidential elections it's always tough when we're in the heat of campaigns people naturally are going to worry more about what's lost than what's gained with respect to trade agreements. But I am confident that we're going to be able to get this done.



QUEST: The President is confident. Ken Rogoff served as Chief Economist to the IMF, he's now a Professor at Harvard. He joins me, good to see you, as always, sir.


QUEST: On this question of trade agreements in a recent article, you're quite -- you sort of are critical of the line of the anti-trade line being taken by those like Donald Trump and Bernie Sanders and some extent all the republican candidates.

ROGOFF: Well, I want to draw a line between trade as a moral issue and trade as a political issue. Certainly there are people who lose from trade and we should have a tax system that helps them. We should have unemployment insurance. We should have all kinds of social protections. But if you think trade is a moral imperative to stop trade, you're forgetting that hundreds of millions of people in India and China, billions, who live in dire poverty have come out of it with this trade. In China, they're hoping to get 50 million people up, up to $350 a day.

QUEST: But you say the idea that trade fuels inequality is a very parochial perspective and protections who shroud themselves in a moralistic inequality narrative are deeply hypocritical. But these are the arguments that are finding favor at the ballot box. Look at the roads in Austria. Last week. Look at "brexit." Look at the republican candidates.

ROGOFF: Well, it's clearly a compelling political argument because it's been working but I want to separate it from being a moral argument. If you look at the world, inequality has gone down more in the last 30 years than maybe any time in history save perhaps for a few failed states. So we need a system within the rich countries that does transfers, has more, you know, generous tax redistribution. But if you cut off trade, you're hurting these very, very poor people. The poverty line in china's $350 a year, in the U.S., it's $12,000 a year, it's just not comparable.

QUEST: Do you believe that come what May, I mean, whether it's (TTIP) in the Pacific one or the E.U. one, these deals will get done whatever happens? And that seems to be the fundamental fear of many of the critics. Look. I was in Seattle during the battle for the WTO in those days. Trade has never been popular.

ROGOFF: Well, what is true is trade keeps growing with or without the deals and, frankly, a lot of these deals open up Asia to us, to countries in Latin America far more than they open us up. We frankly have pretty free trade at the moment. Japan sure doesn't and the transpacific deal. That opens up Japan and it opens up countries like Vietnam. Now I think in the long run the U.S. benefits hugely and let's not forget we're fighting China for a sphere of influence and if we pull out of this what's going to happen?

QUEST: Your arguments aren't popular at the moment, are they?


QUEST: You're on the wrong side of this one, according to some.

ROGOFF: Thank you.

QUEST: Good do see you, sir, as always.

As we continue on the program tonight, we're going to be looking at Ted Cruz, John Kasich and an alliance.


QUEST: It really is a case of my enemy's enemy is my friend. Or maybe it's my friend's enemy is my friend or maybe it's my friend's enemy is a my friend's enemy. Whichever way it is, the two of them have come together trying to beat Donald Trump. Is this fair?




QUEST: Weak, pathetic, desperate. That's how Donald Trump is describing the newest development on the Republican campaign trail.


QUEST: Now, this is the development. These two, Ted Cruz and John Kasich, have formed an alliance and they're going to pull their resources in the hope that blocking Trump from getting as many delegates in the remaining primaries and, therefore, securing the nomination outright pushing for a contested convention when, obviously, delegates are free to vote for whoever they like after the first vote. Trump says this is all proof that the system is rigged.

DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: You know if you collude in business, if you collude in business or if you collude in the stock market they put you in jail. But in politics because it's a rigged system, because it's a corrupt enterprise, in politics, you're allowed to collude so they colluded and actually I was happy because it shows how weak they are. It shows how pathetic they are.

QUEST: Weak, pathetic, desperate. Cruz and Kasich making the most of their limited resources and they're basically agreeing to stay out of each other's way as the campaign entering the end game. So Ted Cruz will cede New Mexico and Oregon to Kasich. Basically Cruz will not fight here so that he can become number two. Maybe even number one. While Kasich won't compete in Indiana hoping, obviously, that Cruz wins that one.

If the accusations are -- I mean, however, however technically lawful and proper, correct they are, it's politically inappropriate. But both men defended their plan.

TED CRUZ, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: After discussions with the Kasich campaign we made a decision about allocating resources. We decided to allocate our time and energy and resources on the state of Indiana. Governor Kasich decided to allocate his resources elsewhere.

JOHN KASICH, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Resources. I feel it's very fair for me to be able to go to areas where i can spend my resources most effectively. And the same is true for Senator Cruz. What's the big deal?


QUEST: What is the big deal? Mark Preston is here. Mark Preston is -- good to see you, sir.


QUEST: Have you ever seen anything like this before?

PRESTON: Absolutely not. Absolutely not. And who even knows if it's successful at this point in the campaign? It might just be too late now, Richard.

QUEST: Firstly, is it illegitimate what they're doing? Well it's technically OK, but is it inappropriate?

PRESTON: If you are a follower, a backer of Donald Trump, then it is inappropriate. If you are somebody who doesn't care for Donald Trump and you don't want him to be the Republican nominee, let alone President of the United States, then you like this idea.

QUEST: But what we are seeing here, first of all, with this sort of shenanigans and secondly with the way in which Ted Cruz is going to round up delegates who are then free on later votes, I mean, at the end of the day, Trump is getting more delegates, legitimately, and more votes legitimately.

PRESTON: Well he's getting more votes although Donald Trump's problem has been from the very beginning is that he ran a Presidential km pain here in the United States based upon media appearances and that can only get you so far.


PRESTON: What we're seeing now is Ted Cruz has come in in the back door, Richard. He's come in the back door and he is starting to pick up delegates that Donald Trump should have secured and has failed to do so.

QUEST: Right, he's doing it playing politics, playing -- not -- I mean I hate to use the word dirty tricks because it's legitimate what he's doing but it's not - it's sort of basically saying to people, yep, you can vote for Trump on the first ballot, because that's what you're committed to doing, and thereafter you're free to vote for me.



PRESTON: Some would say that he is a good card player. Right? He knows that if you're going to lose this hand, you're really playing ahead to the next hand when the pocket's a little bit deeper.


PRESTON: But, you know, this is a situation that Donald Trump right now has a head wind with him. You know, at this point. He's somebody who has come out of here in New York who won very big. He's going in to tomorrow night when there's going to be five contests here along the eastern seaboard, and he's going to do well and that is what's scaring Ted Cruz and John Kasich.


QUEST: If, if Donald Trump -- it's 1,272 is the number of delegates you need I think --

PRESTON: 1,237.

QUEST: 1,237 I do beg your pardon. 1,237. Thank you. 1,237. If he falls short by 100 or 200 --

PRESTON, Right, or 2.

QUEST: But I'm trying to get to the point is that if he just, just falls short --


QUEST: and then doesn't get the nomination, he has a very good claim for saying this is democracy of a sham.

PRESTON: No doubt about that and I think for the next couple of months we'll hear him saying that this is democracy at a sham. But rules were laid out and if he falls short then he's got to play the game through and try to win the nomination on the floor. However, that might not play out in the world, in the public world that says he deserves it and it's certainly not going play out with the supporters.

QUEST: I bet you have got no idea what happens next.

PRESTON: I have absolutely no idea.

QUEST: In this one --

PRESTON: No Idea, but I would say this. I mean, you know, in the realm of Donald Trump, this is a reality show game right now where he has a shot of winning it and a shot of losing it. Who better to be at the head of it than Donald Trump?

QUEST: Great to see you. Thank you for always helping us understand what's happening.

Now Steve Hilton joins me to help us understand the machinations. He says the Republican Party is in need of a major overhaul. Good to see you sir.

STEVE HILTON, CEO CROWDPAC: How are you doing Richard.

QUEST: Thank you for coming in and joining us. You are David Cameron's former director of strategy. You helped overhaul the Conservative Party and take it back to victory in the U.S. Now you're CEO of Crowdpac, you join me in the C-suite. Steve, you in a recent article on the Republican Party, your point was fundamentally it's not the way you're telling the message that's the problem.

HILTON: That's exactly right. I think for too long they've thought if they get a better website or they just find out a way to reach more Hispanic voters or something like that, that will solve the problems. It's actually much more about a fundamental rethink to show how your principles can deal with the problems that real people experience today. And I think that actually Trump and Cruz in many ways are on to something. Because when they talk about the rigged system, when Cruz talks about the Washington cartel running things, that's a truth about the modern world that many things in our lives have become too big and bureaucratic and removed from the human scale.


HILTON: The trouble is what they haven't done is turn that into an agenda for real changes that will improve people's lives.

QUEST: But what does that mean?


QUEST: Because they would say that that's exactly what they're doing. The Republican Party would say that their policies may be anti-gay or not as gay friendly or not as immigrant friendly or whatever, or more inequality related. But they would say that their constituency, this's what they're looking for.

HILTON: But that's not how you win elections. How you win elections is by making a big argument about what's wrong with the country and how you're going to change this.

QUEST: They say they've done that.

HILTON: They've done the first part of it which is making the big argument. I think that's what they're tapping into, this sense of anger and frustration with big business, with big government, with this bureaucratic way of running things. What they haven't done is show anybody how they would actually turn that into a change that would affect their life on a daily basis.

QUEST: You know, the Tory Party thought of as a mean and nasty party didn't they? It was always about what they were against rather than what they were for. When you were having those discussions before government, how brutal did you have to be with the Tory grandees?

HILTON: I think that there was a group of us who were involved in the modernization of the party that had seen the way things had gone wrong and actually didn't need much - the people, the leadership didn't need much convincing because we could all see and we all felt this very strong sense that actually conservative principles applied to the modern era would be not only right but popular.

QUEST: "Brexit." I just got back from the U.K. a couple of days ago and I'll be back there covering in it a couple of weeks. Is this a big idea? Is this the sort of thing you're talking about? It seems to me from listening to both sides there's very much big ideas at stake here. The big idea of what the two sides, what the future of the U.K. to look like in Europe.

HILTON: I think it is a big argument and a bit idea. Look I've just written this book called "More Human" which is about what's wrong with the world where things have become too removed from the human scale.



HILTON: Now, the E,U, is very much in the heart of the argument because people in the U.K. think too many decisions made too far away and that they can't really control them.

QUEST: That's what they were to say in Washington, of course.

HILTON: Exactly right. It's a very similar discussion. Now, on the other side, you've got people that say well that's fine. we accept that there's a bit of loss of control there. But what we get in exchange for that are economic benefits like trade and clout around the world.

QUEST: Are you going to tell me you have - you have singularly not revealed so far how you're going to vote on June 23rd?


HILTON: Well, first of all, I won't be there. I live now -- I live in - I live in California. And the thing that I'm - it's very generous of you to give me the --

QUEST: I know you appreciate the offer.

HILTON: I really do but the trouble is I think that there's something slightly impolite about intervening in that debate from the other side of the Atlantic so I think I'll wait until I'm there.

QUEST: Good to see you as always.

HILTON: And you.

QUEST: Thank you very much.

As if political woes in the U.K. and the U.S. weren't bad enough, well, they're worse in Brazil. Now Brazil's Vice President has denied that there's a coo in the works against Dilma Rousseff. The country is mired in tour moil as the Senate could vote to impeach Rousseff. It's all happening more than 100 days from the Olympic Games in Rio de Janeiro.

Shasta Darlington spoke exclusively to Michel Temer. Shasta joins me. What did he say that surprised you?

SHASTA DARLINGTON, CNN CORRESPONDENT: Well, Richard, we did expect him to come out defending himself and Brazil against the accusations from the President that he was behind this coup d'etat, that it wasn't really an impeachment. He did that. I think what was interesting is that he admitted that he once he becomes President, if senate votes to go forward with that impeachment trial, that he, too, recognizes that he could face an impeachment.


DARLINGTON: And that we've seen coming out in polls, a lot of Brazilians saying they don't want to see just Rousseff removed from the office they also would like to see the vice president removed and new elections held. And he said he recognizes that this is a very divided country right now with a deep recession, the political chaos, zika virus et cetera, but that he's going to try and build a unified government and country. Take a listen to this.

MICHEL TEMER, BRAZILIAN VICE PRESIDENT: (As translated) my goal would be to work with the country's political forces and form a good cabinet to advise me, to guarantee governability, to help the economy recover and put the country back on track for a smooth election in 2018.


DARLINGTON: Now, as you know, Richard that's a pretty tall order, it's not going to be easy to rein in all of these different forces. The President and her supporters have vowed to keep up the fight and we expect protests and even strikes so it's not going to be an easy task, Richard.


QUEST: OK. Shasta, I mean, the vice president is considered to be a technocrat. He's been there since 2011, he's the leader of one of the other parties. Is he thought of being - and he does -- if he does become President or interim President replacement President, whatever the phrase being used is, is he thought to be up to the job?


DARLINGTON: You know, when you look at markets and investors, whenever it looks like the impeachment is moving forward, we'll see a change of government, the markets react positively and I think that's what the vice president tries to get across and a lot of advisers. They say, listen. Half of the battle here is confidence. If we can boost investor confidence then we can really start to turn around the economy. You turn around the economy, Brazilians will be less angry and we can all start moving forward. And that's what he's betting on and in fact he's already talking to former central banker (inaudible), that could be one of the big names for finance minister, he's really moving forward Richard.

QUEST: OK. Now, what is the likelihood -- because this is really what people care about in the rest of the world; what is the likelihood that all this happens bang slap wallop in the middle of the Olympics and that it is not Dilma Rousseff that announces the opening of the Olympics?

DARLINGTON: Richard, I think it's a very, very likely that it will not be Dilma Rousseff who opens the Olympics. This is going to move quickly.


DARLINGTON: At this point, it looks like senate could vote as early as the 12th of May or maybe the end of May to go ahead with the impeachment. They only need a simple majority and as soon as that vote comes in, she's got to step down for 180 days to defend herself.