BUSINESS-01
Years; Facebook Launches Messenger Lite; New York Attorney General Orders
Trump Foundation to Cease Fundraising; Kim Kardashian West Robbed at
Gunpoint; China Cracks Down on TV Content. Aired 4-5p ET - Part 2>
Bell, Matt Rivers>
Brailsford, Dir. Garrick Luxury Watchmakers; Ross Barr, Founder and
Director, Ross Barr; June Sarpong, Founder, LDNY, Best of Britannia
Ambassador; Karan Bilimoria, Founder and Chairman, Cobra Beer; Boris
Epshteyn, Senior Advisor, Trump Campaign; Maria Cardona, Democratic
Strategist; Lance Ulanoff, Chief Correspondent and Editor-at-Large, Tech
Website Mashable; Nick Woodman, CEO, GoPro; Jean Claude Biver, President,
Lvmh Watch Division>
her time and will invoke Article 50 in March of next year. Chris Grayling
was one who campaigned very hard against Teresa May for Britain to leave
the European Union. Grayling is now part of her cabinet, and he's very
comfortable with the direction she is now taking. A 100 days ago and the
forecasts were that Britain was about to fall apart. Best of Britannia
exhibition was this weekend. Some of the craftsman were gleeful at the
post-Brexit boom. Lord Karan Bilimoria says those negotiating for Brexit
don't have a clue what their objective is. Documents mailed to and then
published by the "New York Times," showed that Donald Trump posted an
almost billion-dollar loss back in 1995. By claiming that loss, Trump
would be able to go the next 18 years without paying federal income tax.
Polls aren't the only way to predict November's outcome, the stock market
and the economy may also give strong clues as to who will win. Reality TV
star Kim Kardashian-West left France after being robbed and held at
gunpoint at a private apartment in Paris. More than $10 million worth of
jewelry and phones were stolen according to the prosecutor's office.
Beijing has recently issued new censorship guidelines forcing shows to
block content that promotes so-called western life styles. For Facebook's
one billion users, it's not enough. The company has launched a slimmed
down version of its messaging app designed for users with slower internet.
PWC forecasts the market will be worth nearly $130 billion by the end of
the decade. GoPro CEO Nick Woodman says demand for the company's products
remain strong. In a world where we feel reliant on the latest technology,
the time piece titan Jean Claude Biver says a simple watch still has
important role to play.>
Elections; Television and Radio; Entertainment; Crime; Taxes; Polls;
Technology; Consumers; China;>
LAKE: I'm going to leave it there, Boris. I know you want to jump in. You know this confrontation will continue on CNN, but it can't continue on this show because we have a lot of news. Thank you both for joining us. We will continue to cover this in the coming hours, thank you both.
Now the U.S. market started the fourth quarter in the red. The Dow lost 54 points even though it recovered from some heavier losses. The NASDAQ and the S&P also closed down around a quarter of a percent.
Now in this election polls aren't the only way to predict November's outcome, and Heather Long will tell me the stock market and the economy may also give strong clues as to who will win. At the start of each week CNNMoney will check on what the market metrics are telling us. Heather, so what are we up to today? And how is it that the stock market can be an indicator of who is doing well?
HEATHER LONG, CNNMONEY SENIOR WRITER: Sure, it's a little bit different than the polls, what the stock market is telling us. So the U.S. stock market has actually been really reliable predictor for who will win the White House. And right now it's telling us Donald Trump. That's a bit of a difference than what you were just talking about.
LAKE: Absolutely and in the stock market, what is it that they're grabbing on to, do you think? What is this particular connection with stocks?
LONG: The first thing you have to think is the folks that develop this metric are at S&P That. And they look at how the stock market performs from August 1 to October 31. So that critical three-month period leading up to the election. If stocks rise during that period, it favors Hillary Clinton. If they fall it favors Donald Trump. So if they're more bullish, they probably want to keep the same party in the White House, they would favor Clinton. Right now the S&P 500 is just a little bit below where it was on August 1. So that's why it's tilting a little bit towards Trump. But we saw a little bit of a rebound last week. So that could slip.
LAKE: All right, so were going to check next week to see if there is a change. And of course, a lot of times people will say things to pollsters, but where they put their money is more telling. Gas prices, what is that telling us?
LONG: Sure, so we have this famous line in American politics, "It's the economy, stupid." And one of the best gauges for how people feel about economics is gas prices. And right now those are really pointing strongly toward Hillary Clinton.
LAKE: Because they've been low, right?
LONG: Very low.
LAKE: We're feeling good about it.
LONG: They are very low. They would need to go above three dollars a gallon and they're not anywhere near that
LAKE: Right. There are a lot of forces that have nothing to do with the election, but if she's going to get credit that that's fine. This is something that is not domestic which is interesting, is garnered a lot of attention last week, and that's the Mexican peso.
[16:30:02] LONG: That's right. What does Mexico have to do with the U.S. election?
LAKE: A lot in this election.
LONG: Trump talks all of the time about Mexico, building that wall. He wants to renegotiating trade with Mexico. It's funny every time Trump looks like he's doing well in the polls, like the end of August, the Mexican peso starts falling. And every time Trump doesn't look so good, like what happened after the last debate and certainly with this latest tax revelation, the Mexican peso rises. So right now the Mexican peso is up, and that is a good sign for Hillary Clinton.
LAKE: All right and we've got it on our screen, and were going to follow these metrics along. So it'll be a good gauge to see if they're reflecting on what we're hearing in the polls as well. Especially if money is involved. Heather, we'll see you next week, but I think you so much.
Now it is the robbery that has caused a social media storm. We know you heard about it, Paris police are looking for five gunmen after Kim Kardashian-West was robbed in a private apartment in Paris.
(COMMERCIAL BREAK)
LAKE: Hello, I'm Maggie Lake. There's more QUEST MEANS BUSINESS in a moment. When will take you live to Paris where a shaken Kim Kardashian has been robbed of millions of dollars in jewels. Police are hunting for the gunmen. And I'm talking to the CEO of GoPro, Nick Woodman tells me why demand for the company's products remain strong despite the reports suggesting otherwise. First, the headlines this hour.
Donald Trump's foundation has been told to immediately stop raising money in New York State. The New York Attorney General said the foundation is violating state law for raising money without a permit. It has been handed in order to cease and desist soliciting donations. A spokeswoman from the Trump Foundation said, "While we remain very concerned about the political motives behind Schneiderman's investigation, the Trump Foundation, nevertheless intends to cooperate fully with the investigation. Because this is an ongoing legal matter, the Trump foundation will not comment further at this time."
Trump's popularity has taken a hit in a new CNN/ORC poll. His main rival, the Democratic nominee, Hillary Clinton, has regained the advantage in the race for the White House. She is now five points ahead of Trump nationwide.
Colombian voters have rejected a historic peace agreement that would have ended 52 years of fighting between the government and FARC rebels. The result came as a shock as polls had shown support for the deal. Critics say the deal doesn't punish the rebels for what they did. The Colombian president says a cease fire is still in place.
We are hours away from hurricane Matthew likely making landfall in Haiti where it could dump as much as 100 cm of rain. This category four storm could prove disastrous there. Haiti's infrastructure still hasn't recovered from the 2010 earthquake.
[16:35:02] Hungarians voted Sunday to reject the European Union refugee resettlement plan. Voter turnout was not high enough to make the vote valid. The vice president of Hungary's ruling party said more than 90 percent of those who did vote supported the prime minister's no position. Under the agreement reached with the EU last year Hungry would have to accept almost 1300 refugees.
Reality TV star Kim Kardashian-West left France after being robbed and held at gunpoint at a private apartment in Paris. More than $10 million worth of jewelry and phones were stolen according to the prosecutor's office. A spokesperson for Kardashian-West said she is badly shaken but physically unharmed. Kardashian-West's husband abruptly left a music festival in New York when he heard the news. Kanye West told fans mid-song that he had to stop the performance.
(BEGIN VIDEO CLIP)
KANYE WEST, RECORDING ARTIST: I'm sorry family emergency.
(END VIDEO CLIP)
LAKE: Melissa Bell is in Paris now and joins us. Obviously this raising grave concern about how this could have happened?
MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT: Hugely embarrassing for French security services. That Kim Kardashian would have been staying here in the heart of one of the fanciest districts in central Paris and could have been robbed at gunpoint. It seems absolutely extraordinary that there was such a lapse in security should have been allowed to happen.
Clearly French authorities said their utmost priority now is to make sure they catch these five gunmen and put an end to this. It is a huge embarrassment also at time when Paris was really trying to bring tourists back. The vanished over the course of the last year and half, the figures are startling, just in the first half of 2016 a million fewer tourists visited Paris than they have the previous year.
A series of terror attacks we had here in the French capital, and a number of bad headlines. I'm also thinking of demonstrations and riots on the edges of the demonstrations. Paris is struggling to get people to come visit in the sorts of numbers they used to see. Even as they were mounting initiatives to lure tourists back, this happened.
Reminding people that Paris has a serious security issue. Even someone like Kim Kardashian can have something like this happen to her. It will be hard for Paris to convince people it's OK for them to come back.
LAKE: Melissa, how confident do they feel that they will be able to crack this case? There is a lot of suspicion that this might have been an inside job given some of the details surrounding it and the questions of where were her body guards and how did they know she was there?
BELL: I think that is one of the big questions this evening. Is whether it might have been -- there might have been some inside involvement. In any case, what we can say for certain is these were remarkably well organized people. This was not an opportunistic robbery. They came to this location half past 2:00 in the morning, overpowered the security man on duty that night. Why there was only one is one of the principal questions.
Managed to get upstairs, managed to hold her at gunpoint, lock her in her bathroom, and it seems extraordinary it should have been allowed to happen. The investigators be having to answer that and they will have to try and find the people who clearly targeted Kim Kardashian. They came here looking for her specifically at a time of night when they knew exactly what they were doing.
They got in and out with the jewels that presumably they had come looking for. So it's a highly organized group and I think the French security forces will be worried at this stage that it will be very hard for them to track them down.
LAKE: And very sophisticated indeed, it is not going to be easy to flip those kind of jewels with so many people watching in the world. So one has to think that they did think it through very carefully. Melissa, thank you so much. We'll continue to track that story, of course.
One place you may not see a lot of Kim Kardashian on television is China. That's because Beijing has recently issued new censorship guidelines forcing shows to block content that promotes so-called western life styles. Matt Rivers reports.
(BEGIN VIDEOTAPE)
MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: When the popular Chinese drama, "The Saga of Wu Zetien" was abruptly pulled from the air in January of last year, the government said it was for technical reasons. But when the show was broadcast again, millions of fans immediately noticed something a bit different, maybe you did, too.
The ever present cleavage of female characters was gone fallen victims to digital zooms and close ups. Such is life in the world of Chinese media where strict government censorship controls many things beyond just cleavage.
[16:40:02] New regulations say shows that promote western lifestyles are no good. "Foreign inspired shows are also a problem."
Media reports say Chinese TV stations were warned to put South Korean projects on hold after a U.S. backed missile defense system was announced there. A move that Beijing doesn't like. No shows featuring the children of celebrities are allowed either. This show, "Dad Where Are We Going?" did that. Now it is canceled plus any displays of homosexuality are forbidden, an internet show about a relationship between two teenage boys was quickly pulled in February despite getting 10 million views in just one day after its release.
The following things are also banned -- joking about Chinese traditions, classic material, sensationalizing private affairs, relationships or family disputes, or putting stars, internet celebrities, or billionaires on a pedestal. You also can't show anyone drinking a beer, although to be fair, I can't do that on CNN either, you can't show anyone lighting up a cigarette, or finally you can't show anyone traveling through time.
Yes, even time travel can't escape Chinese censors. Some of these restrictions might seem odd, and you could spend all day speculating why they're in place, but don't expect an official explanation of the logic behind them. The government here rarely shares its motivations. For now, no western influence, no time travel, no cleavage, and no stated reason why. Matt Rivers, CNN, Beijing.
(END VIDEOTAPE)
LAKE: Message received. Facebook is pushing into emerging markets with a trimmed version of its messaging app, details up next.
(COMMERCIAL BREAK)
LAKE: For Facebook's one billion users, it's not enough. The company has launched a slimmed down version of its messaging app designed for users with slower internet. Messenger Lite has rolled out in Venezuela, Tunisia, Kenya, Sri Lanka and Malaysia.
More countries will join later. With me now is Lance Ulanoff, he is the chief correspondent and editor at large of the tech website Mashable. Lance it is so good to see you in the studio, so we know they have had the developing world in their sights for some kind, is this important?
LANCE ULANOFF, CHIEF CORRESPONDENT AND EDITOR-AT-LARGE, TECH WEBSITE MASHABLE: It is because it is on an android. And android is the most widely used mobile platform in the world. And it is also on a lot of really affordable phones, and these phones are usually often not on mobile broadband or the lowest end of mobile broadband, so giving these people the ability to communicate with a app that doesn't stress out these older phones and the older technology is pretty important.
LAKE: How big could this be for Facebook? We know there is a sense they have been plateauing.
[16:45:00] Do you think this will allow them to build on that user base? Is it just early foray?
ULANOFF: There are four billion people still not on the internet. There is a wide open market for Facebook to expand. And where they really plateaued is in the U.S. Mobile broad band is ubiquitous, smart phones are essentially ubiquitous, we all have it. But in these other countries, in these other places it is simply not the case.
LAKE: The internet is slow now but it isn't always going to stay that way.
ULANOFF: No.
LAKE: For where it is, sort of slowing users, they are obviously trying to get us to spend more and more time in that world. They also today announced they're doing a friendlier version of Craigslist or marketplace of sorts. Is that interesting or is that just noise?
ULANOFF: It is very interesting but it's also a little strange. So this marketplace has been around for a while, but they have a better position. They're pushing it more and they have a spot to find it more easily. It's a basically way to sell your garbage, your stuff, right?
LAKE: One man's garbage is another's treasure.
ULANOFF: So true but they're not even enabling transactions. It's like hit the button and then you get to list your stuff, and what happens is -- and this is where it is important, sort of uses localization. It will show you deals in your neighborhood. Stuff people are selling that is within your general vicinity, after that it is totally up to you to basically communicate with them and decide how is this transaction going to happen?
LAKE: We do that on groups I feel like because I've got an active one in my neighborhood, so I'm not sure -- have people gotten over the fact that there was some overstating of video usage? Investors were not happy with that a couple weeks ago, have we recovered that from?
ULANOFF: I would say so. It a very confusing thing. There are no standards in that area. How people measure the views and engagement. It was all about nothing that is three seconds or less would be counted. Which you think would be a good thing but it turned out it was actually not counting then the full number of people that might have seen the ads.
So it was a fairly big problem for people who measure ad engagement. They measure it by overall size of audience versus the number of people engaged. Fairly big deal, seems like they have cleared up, I've heard next nothing about it. Facebook is what I call a social media juggernaut, nothing is stopping it. It is a real power house in this space compared to something like twitter which is struggling and which is basically on the block.
LAKE: I feel myself getting sucked into the Facebook world no matter what I do. Thank you so much for coming by. Great to see you.
Now from snowboarding to surfing GoPro cameras are the mainstay of adventure seekers. Now there is a new one after a two year wait since its predecessor Hero 5 has hit the shelves in the U.S. this Monday. The main new feature is its ability to upload photos automatically to GoPro's own cloud storage. Hero 5 is available in the U.S. now but it will reveal its full potential when combined with the GoPro's new drone.
It is flying into crowded skies ruled by Chinese manufacturer DJI and to a lesser extent the French Parrot and the American 3D Robotics. GoPro will try to find it's vanishing point on October 23rd when its drone Karma launches. It is not the only newcomer though, Chinese Xiaomi recently released a drone that beat DJI on price. There is big money at stake, no doubt about it.
PWC forecasts the market will be worth nearly $130 billion by the end of the decade. GoPro CEO Nick Woodman says demand for the company's products remain strong. I spoke with him earlier about GoPro's new camera and upcoming drone. I asked him why people who have the Hero 4 should upgrade.
(BEGIN VIDEOTAPE)
NICK WOODMAN, CEO, GOPRO: You will want to get new Hero 5 black or Hero 5 session camera because we have finally made it easy for you to not only capture incredible life experiences, but now you can automatically off load those experiences to the cloud, to a GoPro plus cloud account. So that you can later access that footage and make an edit using your phone and GoPro's quick app. So since Hero 5 cameras now off load their content to the cloud when they're charging, it is finally easy to make use of all of that footage that you captured and share incredible stories.
LAKE: And the viral hits that we want to try to recreate or create ourselves. How much success are you having in terms of growing the customer base. We know there are enthusiasts out there. We watch the all their content and we love it, but do you feel like you getting more of the everyday user that frankly may already be getting a lot of the capabilities they need from their smart phone, we keep seeing smart phone cameras get better.
WOODMAN: Demand for GoPro has never been stronger. Before the launch of Hero 5, on store shelves and available online today, even before the launch of the fantastic new experience from GoPro, sales of Hero 4, a two-year-old product from GoPro, sell at our retail partner stores was - never better.
[16:50:12] So there is a myth that somehow demand for a GoPro has been waning and that just simply is not true. Consumers have been buying them at higher rates than ever before. And now that we launched Hero 5, GoPro plus and soon Karma on October 23, we've given customers more reason than ever to get excited about GoPro this holiday season. So we expect interest to grow even more.
LAKE: And of course, we're going into the holiday season, so you have these new products, the editing, and also a drone. Let's not forget about that, the eagerly awaited drone out as well. What do you think the market is for drones? Where are we on this arc?
WOODMAN: Well one of the things we're most excited about Karma is that it is much more than a drone. Yes, Karma does include for $799, Karma includes a flying drone. But the stabilizer can come out of the drone and attach to a handheld grip so you can capture, incredibly smooth professional quality stabilized video. Not only in the air but as you chase your kids around at the beach, the park, or on the mountain.
And it all fits into the backpack you wear during any activity. So in the GoPro sense Karma really goes with you, and I think this is a natural important evolution, and extension of the product line that helps our customers capture their lives in new ways and become even more creative story tellers. So while we're excited about the drone market, we're more excited about the overall story telling markets and Karma helps people share that much more incredible stories.
(END VIDEOTAPE)
LAKE: As we told you earlier, GoPro is not the only company trying to get drones off of the ground, Xiaomi is doing the same thing and smart phones to take on Apple in the U.S. you will hear from the man leading the company's charge into the U.S. market, that is tomorrow on QUEST MEANS BUSINESS.
In a world where we feel reliant on the latest technology, like smart phones and navigation systems, the time piece titan Jean Claude Biver says a simple watch still has important role to play. He joins me after the break. First a highlight from make, create, innovate.
(COMMERCIAL BREAK)
LAKE: There are few bigger names in the watch industry than Jean Claude Biver, in the luxury watch circles, he is often known just by his initials JCB. And as the president of LVMH's watch division, Biver is at the helm of Tag Heuer, Hublot and Zenith. Zenith has partnered with Range Rover to create a new watch inspired by the vehicle.
Jean-Claude joins me now. Thank you so much. Fantastic to see you. The luxury market, a lot of concern about where we are, the slowdown in China, from your vantage point, how are things looking and is the watch a little bit more resilient, the watch business?
[16:55:05] JEAN CLAUDE BIVER, PRESIDENT, LVMH WATCH DIVISION: No, I think we are in a consolidation. We are not in a correction. And when you in a consolidation, it usually is welcome. It's not very comfortable, but somehow in the longer term it is welcome. We are in consolidation mainly in China. We have some problems in the world with the insecurity, the U.S. elections, the insecurity in Europe, the terrorism.
So all of this is affecting us a little bit. But on the longer term, the fundamentals are good and I believe already now we can feel we are improving.
LAKE: You're improving. There is also a sort of existential question about what people want in a watch. There has been so much competition as we know from technology, from smart watches, and in fact Apple has climbed into, I think the number two when it comes to luxury watches, which is extraordinary. How do you grapple with that? What does it mean?
BIVER: It means first that what Apple has done is fantastic. Just unbelievable to become the number two after such a short period. It means also that there is a huge potential because before Apple was not there, so the potential is big.
But it means also that there is eventually a threat for the Swiss watch industry in a certain price category. If you take the connected watch from us, or connected watch from Apple, or whatever. What this watch will become one day obsolete. If you take a watch from the 19th century, 20th century, or a mechanical watch of today, in 100 years it will still work. And that is a huge difference between on one side you have eternity which is art, art is eternal. And on the other side you have technology. And technology is becoming obsolete --
LAKE: But does that limit your market?
BIVER: It limits the price you can sell technology. Technological watch at $10,000, nobody would buy. Why? Because in three years what do you do with the watch? You have lost $10,000.
On a $10,000 classical watch, maybe in three years it's worth $12,000 and it will still work. That is the huge difference. Today we have two markets which we didn't have before. We have the technology market, and we have the watch-making art market.
LAKE: And that is where you still dominate.
BIVER: That is where we are still.
LAKE: Coming out with new products every day, we look forward to them. Thank you very much for being with us. That is QUEST MEANS BUSINESS for today, the news continues here on CNN.
END
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