BUSINESS-01
Trump; Lawsuit Files in Brazilian Mining Accident; Kasich to Drop Out of
the Race Soon; Greek Central Bank Website Taken Down by Hackers; Orlando
Bloom Says Schools Can Save Lives in the Ukraine. UNICEF Rehabilitates
Schools in Ukraine; Football Star Carli Lloyd Fights for Equal Pay; Lloyd
is Now a Heineken Spokeswoman; Star Wars Day Becomes a Marketing Tool.
Aired 4-5p ET - Part 1>
website was attacked by Anonymous. Anonymous says they will continue to
attack in the coming weeks. Orlando Bloom, a goodwill ambassador for
UNICEF, says the schools in Ukraine have been devastated. Children sit in
shelled out classrooms with little hope for the future. Football star
Carli Lloyd has a new contract with Heineken as spokeswoman. Lloyd is part
of a lawsuit against FIFA for equal pay. A lawsuit has been filed over a
mining accident in Brazil.>
Children; Accidents; Mining; Brazil; Lawsuits; Donald Trump; Hillary
Clinton>
[16:00:00]
MAGGIE LAKE, HOST: I sense a great disturbance in the markets. The Dow is headed for more losses as trading comes to an end on "Star Wars" day. It's Wednesday, May the 4th be with you.
(BEGIN VIDEO CLIP)
LAKE: Tonight the general election campaign begins here. Donald Trump's rivals clear the way for him to be the Republican nominee.
The biggest recall in U.S. auto history just got twice as big. And she's the best female footballer on the planet. Carli Lloyd tells me why she's fighting for fair pay.
(END VIDEO CLIP)
LAKE: I'm Maggie Lake. This is "Quest Means Business."
Good evening. The most remarkable political victory in modern U.S. history is almost complete. This time yesterday there were three candidates battling for the Republican nomination. Tonight there's only one, Donald Trump.
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LAKE: After Trump scored a thumping victory in the state of Indiana, his main rival Ted Cruz dropped out. CNN understands the only remaining challenger, John Kasich, will do the same in the next hour.
Speaking earlier to CNN' Wolf Blitzer Trump said the general election campaign has now begun, pitting him against Hillary Clinton.
DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: There's been a little flip and I'm even surprised by it. I thought that I'd be going longer and she'd be going shorter. She can't put it away, that's like a football team that can't get the ball over the line. I put it away. She can't put it away. So I thought that I'd be out there and she'd be campaigning against me. I didn't realize so yes, I'll be campaigning against her while she's campaigning --
WOLF BLITZER, CNN ANCHOR: So the general election campaign from your perspective starts today.
TRUMP: Essentially it's started, I mean yes.
(END VIDEO CLIP)
LAKE: Now, over the last 11 months the Republican establishment has gone from denial to acceptance. It's the five stages of coming to terms with Donald Trump.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I don't think anyone predicted what happened.
TED CRUZ, FORMER U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Donald Trump will not be nominee.
UNIDENTIFIED FEMALE: He's leading right now. You just looked in that camera and said he's a coward. Will you support him as the nominee?
CRUZ: Donald Trump will not be the nominee.
TRUMP: Kasich, you know the man that eats like with the large vice.
JEB BUSH, FORMER U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: He's a chaos candidate and he'd be a chaos President.
TRUMP: Little Marco.
BUSH: You're never going to be President of the United States by insulting your way to the Presidency.
TRUMP: Let's see, I'm at 42, you're at 3, so so far I'm doing better.
BUSH: Doesn't matter, doesn't matter.
TRUMP: Lyin' ted.
CRUZ: This man is a pathological liar. He combines it with being a narcissist.
TRUMP: I cannot believe how civil it's been up here.
CHRIS CHRISTIE, FORMER U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Showtime is over, everybody, we are not electing an entertainer in chief. I am proud to be here to endorse Donald Trump for President of the United States.
LINDSEY GRAHAM, U.S. REPUBLICAN SENATOR: If you nominate Trump and Cruz, I think you get the same outcome. You know whether it's death by being shot or poisoning, does it really matter?
TRUMP: Many, many people are calling that you wouldn't believe and they're saying we'd love to get on the train, the Trump train they call it, but we'd love to get on the team.
REINCE PRIEBUS, CHAIRMAN, REPBULICAN NATIONAL COMMITTEE: Look, we're here. We're going to get behind the presumptive nominee. It's pretty obvious that Donald Trump is going to get to 1,237.
(END VIDEO CLIP)
LAKE: Jim Gilmore was one of the 18 Republican candidates who tried and failed to beat Donald Trump to the nomination. He is also former head of the RNC and was the Governor of Virginia, and he joins me now.
Jim, so good to have you. This has been, by any measure, an extraordinary process. You yourself have had an evolution when it comes to your thinking about Donald Trump. Where do we stand right now? Is this the man with the skills and the character that it takes to be President of the United States.
JIM GILMORE, FORMER GOVERNOR OF VIRGINIA: Well, yes. I think very early on my objections were with some of his policy positions, but the fact of the matter is that -- I didn't attack him as a person, and -- and my view is at this point we have to recognize that he has been the voice for American discontent.
(BEGIN VIDEO CLIP)
GILMORE: For some ferociousness about American workers feeling like they have been left behind and left and not have jobs, he has voiced that and I think that's why he ended up being the nominee. And I believe we have a very good chance of winning this election because we can't have Hillary Clinton be President of the United States.
(END VIDEO CLIP)
LAKE: You did not attack him personally, but many other Republicans did, just yesterday we had --
GILMORE: Yes, I saw.
LAKE: --Ted Cruz calling him a pathological liar, amoral, a philanderer. Can he given everything that's happened unite this party?
GILMORE: I think so. I think that Senator Cruz's comments were a real meltdown. But, look, the fact is this. Donald Trump is the nominee of our party. He's going to be the nominee of the party, and now he is in direct contrast with Hillary Clinton.
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[16:05:08]
GILMORE: And the Democratic Party on our side is arguing about the kind of brand of socialism the United States ought to have. Well I believe that has to be rejected, and I believe we have to have a policy that understands the connection between the growth of the American economy and American national security, that's very significant I think for our allies as well. We have to have a higher growth economy. You do understand the last three quarters the growth has been stagnant in the United States, and I think that is creating this kind of frustration that's leading to a strong and decisive leader, and I think that's what Donald Trump is presenting himself as.
LAKE: There is frustration, but Donald Trump has also had very strong words when it comes to the economy on trade. Some say creating a trade war which would be destabilizing and bad for national security.
(END VIDEO CLIP)
LAKE: And when you poll voters, including CNN polls out today, they are worried, frankly, about him having his finger on the button. This is over and over again and Hillary Clinton on our air just earlier reaching out across party lines, Republicans, saying let's put this ugliness behind us. Come join team USA, team America. She is going to make a play for Republicans who are nervous about Donald Trump and independents, too.
GILMORE: Well, I think the background has been its Hillary Clinton who's been reckless. She was the one who supported the invasion of Iraq.
(BEGIN VIDEO CLIP)
GILMORE: She is the one who actually was very affirmative in her leadership about the invasion into Libya without any sort of planning after that about what was going to be done or being taken care of. So I think that Hillary Clinton has no ground to stand on there.
Donald Trump is a strong assertive personality to be sure, but, you know, the fact is that I think that he's going to do fine when he becomes the President of the United States. I'm not worried about his being spontaneous with national security policy.
(END VIDEO CLIP)
LAKE: He's also upset people with -- you mentioned that you didn't attack him personally, you disagreed on some of his policies, and there's been a lot of that, whether you're talking about barring Muslims, whether you talk about some of the trade issues, his embrace of Putin, his attitudes towards women. Do you believe that we are going to see Donald Trump pivot on some of these issues, change his policy? Are going to see a different Donald Trump now that the general election is upon us?
GILMORE: Well, I can't tell that, but I believe that what you're seeing right now is a person who's saying that he wants to make sure that the United States is strong, that we're playing a critical role in the world.
(BEGIN VIDEO CLIP)
GILMORE: I don't see any evidence of isolationism, and I don't believe he wants a trade war either. I don't think he's ever said he wants a trade war. I think he wants to make sure that the United States has a fair situation in its international trade policies which goes directly to the frustrations of American workers who have been displaced. And I think this. I think the elites that believe in globalization and, you know, I'm an internationalist, I always have been, and I've spent a lot of time on national security and foreign policy, but the fact is that we have to be as Republicans a voice for displaced workers and for people who have lost their jobs.
(END VIDEO CLIP)
GILMORE: It doesn't do a darn bit of good to talk about the benefits of globalization when you've got a guy that worked in a factory in Ohio or Michigan that suddenly can't feed his family or take care of his family. It's not going to -- he's not going to settle for the Democratic Party answers that says, don't worry about it, we'll just put you on food stamps. This is a man of dignity and success and prosperity who no longer has that, and he -- and he wants someone who is going to express that frustration and do something about it and Donald Trump has said that and that's why he's the nominee.
LAKE: Jim, you are absolutely right that people out there are frustrated and mad. I wonder if this is an ugly slugfest, whether that is going to do anything to help sort of ease that, put minds at ease. We're going to see, it's certainly going to be an interesting few months. Jim, please do come back with us again.
GILMORE: Thank you, Maggie.
LAKE: Now, new CNN polls, I mentioned them just a moment ago, they show a Clinton verse Trump matchup would be one without precedence in modern American politics.
(BEGIN VIDEO CLIP)
LAKE: These are numbers out for us today. Hillary Clinton has a 13-point lead over Trump in a hypothetical general election. Both candidates have unusually high unfavorable ratings and the voters prefer Clinton on most issues except for one, we just touched on it. They think Donald Trump would handle the economy better, and the polls consistently show that is the top issue for voters this year.
(END VIDEO CLIP)
LAKE: Hillary Clinton says Trump is a loose cannon and a risk to the United States. She sat down a few hours ago for an exclusive interview with CNN's Anderson Cooper and says she can beat Trump by fixing the U.S. economy.
HILLARY CLINTON, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: Well, it seemed pretty clear for some time how it was going to turn out, but I also know what it's like to keep fighting to the end because I did that in 2008, and something can always happen, but it -- it didn't surprise me at all that it was over last night.
[16:10:08]
ANDERSON COOPER, CNN ANCHOR: Assuming you get the Democratic nomination.
CLINTON: Right.
COOPER: Are you ready for Donald Trump? I mean, he's already got an unflattering nickname for you, he's unlike any other candidate probably certainly that you've ever run against, that anybody has seen in a long time.
CLINTON: Well, you know, Anderson, I've seen the presidency up close from two different perspectives and I think I know what it takes. And I don't think we can take a risk on a loose cannon like Donald Trump running our country.
You know, Donald Trump has said it's okay for other countries to get nuclear weapons. I think that's just downright dangerous. He has said wages are too high. I think we need to have a raise for the American people, raise the minimum wage, get wages back going up. I think when he says women should be punished for having abortions, that is, you know, just beyond anything that -- that I can imagine, that most women can imagine.
ANDERSON: He did walk that back.
CLINTON: Well, he's a loose cannon. I mean he's somebody who has said so many things, and I'm sure he'll be scrambling and his advisers will be scrambling, but he's already said all of these things. He says climate change is a Chinese hoax, and I think it's real, and we've got to pull the world together to deal with it. So you can go down a long list, some of which he's tried to bob and weave a little bit, but I think it's a risk. I think he is a loose cannon and loose cannons tend to misfire.
ANDERSON: If he is a loose cannon though he's certainly willing to say things during a race against opponents and we've seen this already that a lot of candidates were not prepared for on the GOP side. Are you ready for that?
CLINTON: Well I've sort of been in the arena for 25 years and I think nearly everything that can be thrown at somebody in politics and public life has come my way.
ANDERSON: You feel like you know how to run against him?
CLINTON: Oh absolutely. But I'm not running against him, I'm running my own campaign. I'm running to become President, to really deal with the economy, get it working again, take on all the barriers that stand in the way of people getting ahead. I have a very clear mission in this campaign.
(END VIDEO CLIP)
LAKE: Earlier I spoke to David Gregory, host of "The David Gregory Show" podcast" and a CNN political analyst. I asked him what Hillary Clinton needs to do if she does face Donald Trump.
DAVID GREGORY, HOST, THE DAVID GREGORY SHOW: You're going to have a pretty nasty race, I'm afraid. I think both of them have very high negatives as candidates. They both have vulnerabilities, and they are going to go after each other very, very hard.
There's no question that out of the gate Hillary Clinton looks much stronger than Donald Trump. You look at head-to-head polling by CNN. She's up double digits. You look at any number of the battleground states, she looks at a pretty wide map and a pretty wide victory, but it's still so early. We really can't say what will happen is we get into the throes of the campaign. And I think what we all do well to remember is that no one has done a good job accurately predicting Donald Trump's impact.
He took out a very accomplished and very big Republican field to make history by becoming the Republican nominee, now the presumptive nominee. So I think it's too early to predict his impact and that he can't do better than he appears to be doing right now against Hillary Clinton.
LAKE: David, I mean, the one thing that someone said is that Ted Cruz was right that conservatives are angry and disappointed after Obama, but he was wrong about the fact that so is everyone else. This is -- this is an electorate that's increasingly feeling disaffected. They are angry with the political elite. They feel left out of the economy, and Hillary Clinton's not scoring well on the economy.
GREGORY: No. I think that's a good point, but I think we also have to remember a sense of overall perspective. So there's -- there's no question that Republicans are unraveling. Republicans are feeling all of this ferment within the party, the Tea Party which rose up really under the Bush administration after the bailout of the banks, after the financial collapse, really got that started and -- and coerced through the Republican Party and a lot of these Tea Party leaders were not really listened to or appealed to at all in the part of the elites of the Republican Party. And so you see then in the end you have Trump.
But keep your eye on another number, and that is President Obama's overall approval rating. He is around 50% which is a very high number. That says something about the overall electorate not sharing the same level of anger that we see within the Republican Party or even a smaller sliver of the Democratic Party. And that becomes really important as you start to see Hillary Clinton campaign in the fall with the aid of former President Clinton and Barack and Michelle Obama out there campaigning for her as well.
[16:15:00]
So the level of anger is real. The economic message and the economic message of Trump is very potent, and no doubt she will try to get in on that and formulate her own economic message to compete with that. But that overall anger in the electorate is something we have to watch over time to see how big it is in the general election electorate.
LAKE: A huge headache for the U.S. auto industry. One in five vehicles on the road in the States could be a death trap.
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LAKE: Now, millions more cars are recalled because of potentially dangerous air bags.
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(COMMERCIAL BREAK)
LAKE: The largest auto recall in American history just got even larger. Millions more cars fitted with Takata air bags will have to be replaced. The number of cars affected is between 35 million and 40 million. Add to that the vehicles already subject to a recall order and the total is now close to 70 million. The U.S. Safety Watchdog says 20% of the vehicles on American roads are carrying potentially dangerous air bags.
(BEGIN VIDEO CLIP)
MARK ROSEKIND, ADMINISTRATOR, NHTSA: The Takata air bag recall which we're more than doubling today is the largest and most complex recall in U.S. history. This issue is urgent.
(END VIDEO CLIP)
LAKE: Joining us now is Jack Erad, Market Analyst for the auto industry specialist, Kelley Blue Book and he's in Irvine, California. I mean I read this and I've been aware it was going on, I'm covering this story and I'm still shocked by this somehow. How alarmed should we be
JACK NERAD, EXECUTIVE EDITORIAL DIRECTOR, KELLEY BLUE BOOK: Well, it's very alarming. When you talk about the volume of vehicles affected by this and that each one could be potentially fatal to its driver or passenger or several, you know, occupants. It's a very frightening situation and as Administrator Rosekind said, this is a giant, giant issue.
(BEGIN VIDEO CLIP)
LAKE: Jack, I think part of the problem and the thing I worry about is recall fatigue. I mean I get envelopes on my -- all over my counter, and half the time I think they are just trying to get me in to sell me a car. It's hard to know what to take seriously and not. You know even if you're trying to read through. Is there a chance that a lot of people haven't acted or are not really aware of the peril they may be in?
NERAD: You're spot on, Maggie. I think that's one of the biggest problems here, or one of the biggest issues that NHTSA has to face, that the feds have to face, that the whole industry has to face. And that's that people don't pay that much attention to recall notices. And as vehicles get older and older it's harder to get to the person who is owning the vehicle currently. So there are potentially millions if not tens of millions of vehicles that will never be fixed or are unlikely to be fixed even after massive recalls.
LAKE: And is there -- do they have the capacity to fix them properly?
(END VIDEO CLIP)
LAKE: At the beginning of this whole Takata thing, they were such a large supplier that there wasn't an obvious easy replacement to make or a product that everybody felt really confident about. They weren't sure whether they would just have the same problems or if they had to go to Takata. Have we worked through that? Is there a fix if your able to pay attention or is that still an open question?
[16:20:13]
NERAD: Well, there are still some fixes but it's also the volume of fixes. When you're looking at you know possibly 70 million cars being affected, I mean, that's 70 million cars that need parts, that need replacement actuators for their air bags typically, you know someone will be inspected and be OK but I think others will require replacement. That's a massive, massive amount of parts and a massive undertaking. Again, across many brands, across many model years. It's, you know, one of the most mind- boggling things the auto industry has ever had to face.
LAKE: And we're in a period where there's a lot of things to get your head around. If I think about the ignition issues, the cheating on emissions, the air bags now. Are new cars, safer than this. Have we put some of the issues behind us, or are we just hearing about it more?
NERAD: Well, the interesting thing is new cars are safer. Safety statistics would indicate that new cars are safer. But at the same time when the issues come up there's a lot to be dealt with here, and I think more oversight is necessary going forward, and I think NHTSA has already moved in that direction.
LAKE: And that is certainly good news. One thing I'm going to go do is take a look at all of those things in a pile that I haven't had a chance to get to. Jack Nerad for us, thank you so much.
NERAD: My pleasure.
LAKE: Appreciate him helping me understand an important issue.
I'm going to stay with cars for a second. Tesla has released its earnings report and it has beaten Wall Street expectations.
(BEGIN VIDEO CLIP)
LAKE: Tesla got a boost from the 400,000 pre-orders for its new model 3 car but is having production issues on the model "x." CNN money's Paul La Monica joins me now.
This has been sort of the continual Tesla issue, hasn't, it Paul? There's great promise we're all enthusiastic, but can they deliver I guess?
(END VIDEO CLIP)
PAUL LA MONICA, CNN MONEY CORRESPONDENT: That is true. The demand apparently is so strong that they do have difficulty meeting it. And this looks like very strong demand, particularly for the model 3, the new "cheaper" Tesla that should be coming out soon.
Reading through their earnings report Tesla said they now think they're going to have 500,000 cars by 2018 annually. That was a originally a goal for 2020 so it looks like they are really ramping up production mainly because of that model 3.
LAKE: I like how you say cheaper not affordable because that's the relative term. And it is a lot cheaper than the original model. Do we feel confident? I think that you know the Tesla got such great reviews and enthusiasm around its niche ownership groups so far. This is now mass market that we're starting to push into. Do we think that they can deliver the kind of quality I think that people are expecting them to?
LA MONICA: That's a great question, because obviously a lot of the Tesla faithful, they love the car, but "Consumer Reports" most recently has started to sour a little bit on the reliability. They have said that Tesla, to its credit, is very responsive to customer complaints. A lot of times they do very quickly respond, and that's a good thing because I think many people aren't thrilled with the maker of their cars. But tesla going forward really is going to have a different audience beyond these super affluent people that can afford the model "s" and the model "x" and they may not have as much patience for some of the glitches that can happen with an electric car.
(BEGIN VIDEO CLIP)
LAKE: And those people by the way probably have multiple vehicles.
[CROSS-TALK]
LA MONICA: They probably do, and gas prices remaining as low as they are, I think that could be a potential problem down the road too.
(END VIDEO CLIP)
LAKE: We can't talk about Tesla without talking about the stock. I mean, if you look at Tesla, this is a company with great promise, going through growing pains but an uncertain future and huge momentum in the stock valuation. And we just had Ford which a lot of analysts, like a lot of fundamentals, and that stock is stuck stubbornly down, you know, well underperforming its peers. What about the expectations from investors when it comes to Tesla?
LA MONICA: Yes, Tesla the expectations are always very high. It has the multiple to match and Tesla is in many ways, you know, a stock that is not for the risk averse.
(BEGIN VIDEO CLIP)
LA MONICA: Because clearly GM, Ford, even the international companies like Toyota, they trade at a much lower valuation. Of course, their growth is nowhere near what you have with the prompts of Tesla. But this is a very scary stock, I think, for an average investor to hold even though it's done quite well over the long haul.
(END VIDEO CLIP)
LAKE: You can believe in the revolution but you've got to look at your portfolio if you're going to jump into the stock at that point. Paul, great to catch up with you. Thank you.
LA MONICA: Thank you.
LAKE: Now, let's take a look at how U.S. stocks fared today.
(BEGIN VIDEO CLIP)
LAKE: It was a down day on Wall Street, the Dow fell nearly 100 points or more than half a percent. Losses were worse in Europe. The main markets were down across the board. London's FTSE fell to its lowest point in almost a month. Mining stocks dragging the index lower in part because of concerns about global weakness in manufacturing.
Shares of BGP Billiton, the huge Anglo Australian mining company tumbled nearly 10% on Wednesday. This was a big mover.
[16:25:05]
LAKE: Prosecutors in Brazil filed a civil lawsuit against both BHP and Brazil's Valle seeking $44 billion. It's a claim for damages after a dam at one of their mines collapsed last year killing 19 people. The accident unleashed a wave of toxic mud that buried a village and washed into the ocean. Some have called it the worst environmental disaster in Brazil's history.
Shasta Darlington is live in Rio de Janiero, and Shasta, given all of the issues and challenges that we talk about on a daily basis, now we're going to add this to the list, it seems.
(END VIDEO CLIP)
LAKE: This is a lot of money Brazil is looking for, $44 billion.
SHASTA DARLINGTON, CNN CORRESPONDENT: That's right, Maggie, and it kind of took the mining companies by surprise. That's because if Valle and BHP Billiton had already reached an agreement with Brazilian President Dilma Rousseff, and a settlement worth $6 billion. The idea was that the money would go towards recovering the region, real bringing it back. But in Brazil federal prosecutors work independently from the executive branch, so they did their own investigation of that wave of toxic sludge.
Remember, it buried a village. It washed kilometers down a river and then went out to sea affecting the fisheries there. And what they determined is that the -- in the previous settlement the victims -- the individual victims and the families hadn't really been listened to and hadn't been taken into consideration adequately so they come up with a much larger figure, $44 billion.
Obviously it's hit the stocks of both companies hard, and it's also just a reminder that this disaster is not going to be overcome quickly, neither by the companies nor by Brazil itself. And another interesting detail here, Maggie, the Federal prosecutor said the way they came up with the 44 billion figure was by comparing this disaster to the deep water horizons spill in the Gulf of Mexico when 11 people were killed and there were of course a lot of environmental damages there.
(BEGIN VIDEO CLIP)
DARLINGTON: And that was a huge payout, and they figured there should be more in this case as well. Maggie?
LAKE: And I mean that is, a lot of people making that comparison, it's probably what has investors so concerned, Shasta.
