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QUEST MEANS BUSINESS
Trump Makes Controversial Cabinet Picks; Trump Claims Credit for Ford Job Shift; Amazon Ad Tackles Religious Rhetoric; Obama Urges Cooperation with Trump; Obama Heads to Peru for APEC Summit; Chia to Champion New Trade Deal; $25 Million Settlement Reached Over Trump University
Aired November 18, 2016 - 16:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] PAULA NEWTON, CNN ANCHOR: Not much enthusiasm left on those markets. It's a down day, it is February, November the 18th. Tonight,
transition team take your positions. Donald Trump fills out his cabinet for President-elect and takes a victory lap for saving a Ford factory that
-- wait to hear it -- didn't need saving.
And a prime example of modern America. Amazon wades into the debate on race. I'm Paula Newton and this is QUEST MEANS BUSINESS.
We begin tonight with major cabinet appointments from U.S. President-elect Donald Trump. Now Trump is filling out his national security team picking
the people who will be responsible for everything from prosecuting banks to stopping foreign cyber-attacks, to managing foreign-policy. Now if
confirmed Senator Jeff Sessions will be the next Attorney General, the top law enforcement official in the country. Now the Attorney General also
oversees antitrust matters and he has voiced support for Trump's proposal to ban Muslins from traveling to the United States.
Now Congressman Mike Pompeo has been chosen to be the next director of the CIA. He was a critic of Hillary Clinton's handling of Benghazi attack.
And he is a supporter of keeping Guantanamo Bay open. Now retired Army Lieutenant General, Michael Flynn, will be Trump's National Security
Advisor. He will have the ear of the president on all national security matters. President Obama fired him as the director of the Defense
intelligence agency in 2014 reportedly over his contentious management style. Democratic Congressman, Adam Schiff, told Wolf Blitzer, Trump's
picks are worse.
(BEGIN VIDEO CLIP)
ADAM SCHIFF, U.S. HOUSE DEMOCRAT: Elections have consequences, and you know, some of the consequences we're of choices like Steve Bannon and Mike
Flynn, ought to concern Americans that thought maybe he would moderate his views in the White House in his selections or surround himself with
thoughtful sound people. We're getting some nominees who don't fit that category.
(END VIDEO CLIP)
NEWTON: CNN's Phil Mattingly joins me now. Phil, look, whether or not that there is criticism of these appointments are not, the character of
this cabinet is really coming through isn't it.
PHIL MATTINGLY, CNN CORRESPONDENT: Yes, no question about it. If you thought that Donald Trump wasn't going to pick these types of individuals,
then you weren't paying attention over the last 18 months of his campaign. These are hardline individuals on national security, as you noted. On the
Muslim ban, on combating terrorism in general. They are individuals whose records, whose public comments, whose past statements all line up with the
Donald Trump we heard during the campaign. A hardline national security posture and a posture that very much reflects the candidate that we've all
seen.
NEWTON: In terms of putting this team together, Steve Bannon is one of the people we've discussed here. He's going to be obviously, a strategic
advisor, a senior advisor. The "Hollywood Reporter" had an exclusive interview with him. We're just going to take a look at what he said. He
was basically boasting and saying, look, all of you missed it and this is what this place is about. He actually made the comment, "Darkness is
good... Dick Cheney. Darth Vader. Satan. That's power." I mean, look, this, let's hope, is tongue-in-cheek. But the point is if we go back to
that transition team and then the cabinet that they're assembling, does it look to you as if there actually going to go through with a lot more of the
radical promises that Donald Trump has been making during this campaign?
MATTINGLY: I think to some degree, yes. And you also have to pay attention to some of the individuals that have been coming in to meet with
Donald Trump for potential cabinet positions as well. He's meeting with Mitt Romney tomorrow. No one's totally sure how serious that is. But he
is meeting with people who weren't thrilled about his candidacy. Maybe a few that were opposed to his candidacy. But the reality that -- at least
the thought process -- that Donald Trump would suddenly pivot away from the individual that he was during the campaign. Pivot away from the advisors
that he relied on so heavily in the campaign.
Mike Flynn, Lieutenant General, ran Defense intelligence agency has said a number of extraordinarily controversial things about the Muslim faith. But
he has been by Donald Trump side throughout the campaign. One of the few military officers, one of the few intelligence officials who believed in
Donald Trump. Was willing to sit next to Donald Trump throughout the entire process. The idea that Mike Flynn wouldn't find a place in this
administration means you just haven't been paying attention over the course of this period. So, I think to your point, we are seeing a lot of the
individuals that were unsettling to not just Democrats, but Republicans as well, are making their way into this administration. And frankly you
shouldn't be surprised by that.
NEWTON: Jeff Sessions as well. Just a quick point to you because I know you been following this. I know you can't say definitively but as the
Attorney General, you know, we had on Wall Street the day after the election, we heard "lock her up" on the trading floor. Do you think he has
the stomach for really prosecuting Hillary Clinton?
I could tell you internally right now those who kind of have their fingers to the political winds would not like Donald Trump not to talk about
Hillary Clinton ever again. Except for in a positive tone. They want to move on.
[16:05:02] NEWTON: And he had in the "60 Minutes" interview.
MATTINGLY: He absolutely has and he's tried to kind of maintain that tone since then. Jeff Sessions made a lot of comments along the lines of he
would like to continue to follow these types of investigations particularly on the Clinton Foundation during the campaign. The big question he has to
answer, and there are a lot of questions he has to answer as he goes through the confirmation process, is was he serious about that? Was that
just campaign talk? Is he ready to move on as well? But I can tell you, political advisors inside Donald Trump's team and organization would like
him not to pursue that. If you want to bring the country together, which Donald Trump has repeatedly said he wants to do over the course of the last
couple days, that's not the way to do it.
NEWTON: Optics, Mitt Romney, Nikki Haley, Governor of South Carolina, not people that supported Trump during the campaign, there in there. Do you
think there is an outsider like that, a never Trumper as it were, who might actually get in the Cabinet?
MATTINGLY: I think Trump's advisors want one. They want one at least. But I think the reality is this, loyalty matters and enormous amount to
Donald Trump. It always has. And his team made very clear in the early stages of the transition process, a very chaotic process I might add, that
loyalty was indeed a test. But I do think his team also recognizes that if you want to get the best and the brightest, as they said they did, you need
to bring in people that may be didn't support your candidate at all.
Mitt Romney has made clear to his friends and associates that Secretary of State would be something he would be interested in.
NEWTON: And he serious about that.
MATTINGLY: Not necessarily Secretary of State and Donald Trump's administration, but more broadly Secretary of State. So, I told by Trump
advisers you need to take this meeting between Mitt Romney and Donald Trump seriously. How seriously? Will have to wait and see. I do think probably
more important to both Donald Trump and his advisors the signal it's sending to other Republicans. Hey, we're welcoming people in. Even those
that are opposed to us. We're not trying to ban people from our administration or from our organization. That's a signal they want to get
out right now. Whether there are willing to follow through on that? It's a big question.
NEWTON: One final thing, coming into CNN we are hearing that perhaps, maybe there might be a settlement on the West Coast on the Trump University
case. What will that symbolize in terms of the Trump administration moving on?
MATTINGLY: Clear the decks. These are the types of things, the lawsuits, the controversies, all of these types of issues that might apply to Donald
Trump in his private life. Donald Trump's private businesses, they want to get it out of the way before they go into office. The last thing you want
is a sitting president to be involved in depositions or be involved in any type of opportunity for lawyers to have them sitting down and asking the
questions under oath. The Trump organization is trying to get through -- get rid of all of these types of things. And Donald Trump is as well as
I'm told.
NEWTON: We have to note, an extraordinary change. Donald Trump always said, never settle. Go to court. Never settle.
MATTINGLY: He never settles. Yes, he does.
NEWTON: And he will. So, nice to see you, thanks so much.
MATTINGLY: Thanks for having me.
NEWTON: And we'll continue to talk to you as you continue to follow this transition.
Ford has found itself fact checking Donald Trump after the President-elect claimed he talked the company into halting its plans to move jobs to
Mexico. Now Trump tweeted "Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant
in Kentucky -- no Mexico. I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their
confidence in me!"
There was just one problem with all that Ford said it neither plan to close the plant, nor did it plan to cut any jobs in Kentucky. Ford was thinking
of shuffling around its production lines. One of its Lincoln models was going to be sent to Mexico, but it's place was going to be taken in
Kentucky by the Ford Escape. Now in either case, there was no going to the impact of the number of American jobs. As a candidate, Donald Trump
repeatedly singled out Ford for shifting jobs to Mexico. Each time Ford hit back. Earlier this week, the Ford CEO, told us he's ready to work with
the new administration.
(BEGIN VIDEO CLIP)
MARK FIELDS, CEO FORD: I believe that at the end of the day the right policies are going to prevail. Because we all share the same objective.
We want a strong U.S. economy. So, I think we'll have to wait and see, but were going to stay very focused on engaging positively with the
administration and the new Congress to really talk about the things that will drive economic growth.
(END VIDEO CLIP)
NEWTON: Scott Paul is in Washington. He's the president of the Alliance for American Manufacturing, to talk about all this. I mean, how do you
feel about this? He clearly took credit for something that, you know, he may not have even had a hand in except for some campaign slogans.
SCOTT PAUL, PRESIDENT, ALLIANCE FOR AMERICAN MANUFACTURING: Right. This has been pretty consistent throughout the campaign. So, I don't know how
many folks this should surprise. The reality is that it takes a lot of work to keep jobs in the United States. Trump has singled out individual
companies throughout the campaign. But if there is any body, in this is ironic I guess, who deserves credit for saving America's auto industry, it
was Barack Obama. That took a lot of work. That was the rescue plan done at the beginning of the administration. I do think that companies hope to
see business friendly policy. Policies that will drive investment, drive jobs into the United States and that's what they're going to be looking
for.
NEWTON: You know, you raised a very good point about the leader in the country getting involved in these kinds of issues.
[16:10:00] Barack Obama has taken credit for saving that auto industry. But do you see Donald Trump getting involved in bringing those
manufacturing jobs back to America and getting involved intimately and do you think it would help?
PAUL: I think it would have mixed results. He is also mentioning Apple and his desire to see iPhone made in the United States of America. There
are a lot of hurdles that you would have to jump over to make that possible. I will say, I think it's helpful to have a goal like that. And
I think it's helpful to make statements that you want to restore jobs. That you're going to have policies that are going to be friendly to the
manufacturing environment to the United States.
And that could mean trade policy, currency policy, workforce, tax, infrastructure. There is a lot that can be done and I know that businesses
and workers as well will want to actively work with the Trump administration, with Congress to see what is possible. Because if there's
a lot of conclusions that you can draw from the election. But one of them is certainly that working-class people feel left behind, and a focus on
trying to create more jobs in the United States would make a whole lot of sense I think for both parties.
NEWTON: Do you have a sense there would be a reckoning if he can't bring those manufacturing jobs back to America?
PAUL: Yes, I think clearly there could be. And I said during the campaign that I don't think pining for 50s style manufacturing nostalgia is
necessarily a good thing. We're not going to see a steel mill with 30,000 workers in it. It's just a different manufacturing environment today. And
so, I don't know what every voter had in mind when Trump was speaking to him or her about this. I do think it's possible to grow the sector. We're
also going to have to be realistic about what that's going to look like. And it's going to be robots along with some jobs. But we're not going to
see manufacturing as 50 percent of the economy like we did in the 1950s.
I'm a manufacturing advocate. I want to see a girl. And I do think at some point in time voters who supported Trump will have to look to see how
much progress he's made. I'll just give you an example. Barack Obama in 2012 said I want to create 1 million new manufacturing jobs in his second
term. He created just about a little over 300,000. So, he fell very far short of that goal. I mean, no one remembers that anymore. But it takes a
lot to try to get to that job creation. Some things are out of his control, like global weakness, the business cycle. But policy does matter.
NEWTON: Yes, and we will continue to watch what he can do on that front. Thanks so much for joining us, appreciate it.
PAUL: Thank you.
NEWTON: Now this the next package really dovetails on what we are just talking about. Some manufacturing jobs have moved from the United States
to Mexico. And it's prove Donald Trump with a lot of fodder for that campaign trail. Now workers are hoping the President-elect, as we were
just talking about, will keep his promise to bring those jobs back. And Martin Savidge has a very interesting look into this from Indiana. Take a
listen.
(BEGIN VIDEOTAPE)
MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Rudle Harden (ph) and Eric Cottonhan will never forget the day it happened.
ERIC COTTONHAN, CARRIER EMPLOYEE: It was absolutely devastating.
UNIDENTIFIED MALE: I gave the company 16 years of my life. And starting all over from scratch.
SAVIDGE: Last February heating and air-conditioning giant, Carrier, shocked employees at this Indiana plant saying that in order to stay
competitive, it had made a decision.
UNIDENTIFIED MALE: To move production from our facility in Indianapolis to Monterrey, Mexico.
SAVIDGE: 1400 jobs would soon be gone. But the loss quickly became Donald Trump's campaign game.
DONALD TRUMP, U.S. PRESIDENT-ELECT: Carrier air conditioners says they're leaving the United States. 1400 people. Because they're going to build in
Mexico.
SAVIDGE: Trump said it wouldn't happen if he was president. Part of an effort to tap into blue-collar anger and discontent.
SAVIDGE (on camera): He mentioned Carrier by name. It wasn't just once, it was many, many times.
TRUMP: Carrier, Carrier, Carrier.
Anyone from carrier?
Carrier says they're leaving. Carrier air conditioning.
If you're tired of seeing Carrier leave your state --
COTTONHAN: He knew that was something that America was -- it was happening right now.
SAVIDGE (voice-over): It worked, Trump won thanks in large part to working class votes.
Now, at Sully's Bar and Grill across the street from that Carrier plant, some are hoping for Trump to keep his promise.
PATRICK LEAF, CARRIER EMPLOYEE: Exactly. He made a lot of promises to a lot of people.
SAVIDGE: That's because things here have only gotten worse.
We're less than a mile from Carrier, and this is Rexnord, they make bearings. Just last month, the company announced that its moving this
facility to Mexico. Taking away over 300 jobs.
Local union leader, Chuck Jones says even though he didn't vote for Trump, he still hopeful when president, Trump will come through.
You expect him to live by what he said in the campaign?
[16:15:00] CHUCK JONES, LOCAL UNION LEADER: My expectations is for him to live up to what he promised.
SAVIDGE: They voted for Donald Trump believing it could save their job.
JONES: Correct.
SAVIDGE: Mike Fugate is one of them. A lifelong Democrat, he voted for Trump. But his answers surprised me.
SAVIDGE (on camera): Do you believe that Donald Trump can stop that place from closing?
MIKE FUGATE, CARRIER EMPLOYEE: I don't believe he's going to stop that one. Maybe some in the future. Nobody knows what future is.
SAVIDGE: Why not that one? Why couldn't he stop that one?
FUGATE: Corporate greed. Plain and simple.
SAVIDGE (voice-over): Paul Role also voted for Trump and he does have hope, sort of.
PAUL ROLE, CARRIER EMPLOYEE: I try to optimistic but realistic at the same time.
SAVIDGE (on camera): So, what is that mean?
ROLE: I hope that he can save at least some of the jobs. Because I don't think they -- If they sent just half the jobs they could still make more
money which is all they're after.
SAVIDGE: Martin Savidge, CNN, Indianapolis.
(END VIDEOTAPE)
NEWTON: And we want to bring some breaking news to you now. As we were just talking about, we do now have confirmation of a settlement in the
Trump University case. The President-elect has settled the civil fraud lawsuit for $25 million. Several students sued the now defunct program,
saying they did not receive the education that was promised. The New York Attorney General, Eric Schneiderman, has called it a stunning reversal of
Donald Trump's position. We'll have more for you on this story later in the hour. But remember, as we were just saying with Phil Mattingly, Donald
Trump famously says he would never settle.
Now, from Fifth Avenue to the White House, what can corporate America expect from Donald Trump? Former Apple CEO, John Sculley joins us next.
(COMMERCIAL BREAK)
NEWTON: A second straight week of gains on Wall Street with markets coming within touching distance, oh so close of setting those new highs. Now the
Dow finished about 36 points short of Tuesday's record. Who cares, you know, they're pretty close to it anyway. The NASDAQ opened at an all-time
peak, but just couldn't hang on. Paul La Monica at the New York Stock Exchange. I mean, Paul, we've had a lot of conflicting news here.
Obviously, this was a Trump rally and it's hanging on mostly to those gains. Do you think a little bit, how shall we say, sober second thought
is settling in now?
PAUL R. LA MONICA, CNNMONEY CORRESPONDENT: I think a little bit. I think that investors clearly are wondering just what the economic policies of
President-elect Trump will look like. We still need to get more details about who some of his key economic advisors are going to be. Who the
Treasury Secretary is going to be? Who the Commerce Secretary? So, there's still a lot of questions about what Trumpanomics exactly will mean
for the markets. But right now, investors I think, for the most part are still much more bullish than bearish.
NEWTON: And you know, it was pretty much a sure thing. Now, it looks like that we are going to have that rate hike in December. Do you expect some
backsliding when that reality hits in or is that Fed hike completely priced in?
[16:20:00] LA MONICA: I think the Fed hike is probably priced in. What may not be priced in is what anything Janet Yellen says about 2017. The
market may not necessarily like it if she sounds during the press conference next month as if she's hinting that there could be a rate hike
four times, which could be every meeting that that there is a press conference. That might not be priced in just yet. I think a lot of people
are expecting two rate hikes next year, maybe three at most. But right now, I think, December a rate hike barring some huge shock in the market,
is definitely coming.
NEWTON: We hit the last week of November hitting that all-time U.S. dollar high as well. Our Paul La Monica there. Thank you, have a great weekend.
LA MONICA: Thank you.
NEWTON: Donald Trump is set to usher in a new era for the United States politically and of course, economically. Now, Trump has made his name in
business. But what does he mean for business? John Sculley, former Apple CEO, now chairman and chief marketing officer of RxAdvance, joins us now.
And I want to point out to people that you told CNNMoney as far back as March, that look, his message will resonate. You said, "I think Donald
Trump is a much smarter person then the media is giving him credit for." And you said that he is tapping into voters who are completely fed up with
politicians. How pressing were you, way back in March, when he wasn't even the nominee in terms of delivering on that. How do you think he'll do it?
JOHN SCULLEY, FORMER CEO, APPLE: I think he's pretty well laid it out. You just have to listen carefully. Donald has said that he is a
negotiator. He said, you never start where you want to end up. So, he makes these, sometimes was seems to be outrageous explanations of what he
wants to do, and he will walk those back until he finds something that's the pragmatic point where he can close the deal. He's a dealmaker. So, I
believe his style is going to be not held in by diplomatic protocol. You notice that he's talking to Prime Ministers on the phone. Abe came and
visited him just in the last 24 hours. He's going to do whatever he thinks he needs to do to get stuff done. And that's a style that's well
understood in the business world, but it's not very well understood in Washington.
NEWTON: OK, but what's so interesting about that is you say he'll do what he has to do to get things done. Do you think -- this is going to sound
trite, but I think it's a very searing question. Will government change Donald Trump, or will Donald Trump change government?
SCULLEY: Most CEOs who have gone into business have found it a lot tougher being in government than they thought it was. Even though they knew that
it was running on a different time clock. We are used to doing things when we want to get them done in business.
NEWTON: How will he operate in that environment? I mean, this is a guy who says I'm going with my gut. Do you think he could wreak havoc?
SCULLEY: Well, remember I'm not a part of his inner circle. So, I don't have any insight.
NEWTON: But you've known him for so long. Going back to Wharton Business School days.
SCULLEY: That's correct. I think what he will do is he's pragmatic, he's opportunistic, he has a point of view. He did something that Hillary
didn't do and that is he said this is why I want to be president. And he said, I want to make America great again. I'm going to get the economy
growing again. I'm going to strengthen the military. So, he's pretty much laid out, particularly in that Gettysburg speech that he gave, what he
wants to do. He won't get all those things done. But a president guest to choose maybe two or three things that he selects and then the world selects
another two or three for him. So, he's going to have to be pragmatic. And he'll try some things. They won't work. And then he'll go try something
else.
NEWTON: OK, but voters are looking for more than two or three things. You know, one thing we've just been just been discussing is bringing jobs back
to America. You know, you are former Apple CEO. He's really taken a chunk out of Apple, to use a term. Part of it is because those iPhones are made
mostly overseas, not in America. We have the Nikkei Asia review in Asia suggesting that perhaps Apple is looking at bringing back some of the
manufacturing of those iPhones back to America. I mean, do you really see him getting involved in that nitty-gritty to really change the economic
paradigm that everybody knows to be true in this country. An asset, you move things offshore, because it's cheaper and it's going to help your
bottom line.
SCULLEY: I think the world is adjusting to the fact that globalization, as we have been experiencing it over the last couple decades, is going to be
modified. That the shift towards how do you provide enough jobs, whether it's here or it's in Europe, or it's in China, or somewhere else, is going
to be part of the agenda for anyone who is leading a major power like the United States.
I think you're going to hear from president Trump, jobs, jobs, jobs. Someone like Apple can't move their whole supply chain to the U.S. That's
just not practical.
NEWTON: You may not want to tell Donald Trump that.
SCULLEY: What they can do is they can move some of the final assembly, and tests, some of the support systems around it. But that's not really going
to solve the fact of how do you get a lot of jobs. The way you get a lot of jobs is that you got to make some agreements across the Congress, both
sides.
[16:25:00] To restructure the tax code. Bring the $2.5 trillion that sitting off shore, get it invested. Get some bipartisan support for
infrastructure investment. These are the kind of big projects Donald Trump will do. Why? He is a builder. He's a negotiator. He's a builder. He
will be pragmatic and my sense is that he will probably get some things done and a lot of them will be started in a visible way in 2017.
NEWTON: One of the toughest things he has to get done, and I know this is near and dear to your heart, is Obamacare. He says repeal and replace.
Everybody says replace with what. You've said, it is called affordable care. How does he get there? Because most people say that look, it was
tough for a reason. You can't just have this to be a cafeteria or a buffet and take parts of Obamacare that you like and leave the rest on the table.
SCULLEY: Well, I think of it really as two buckets. One bucket is what politicians focus on, which is the exchanges. The exchanges which are the
marketplace for online enrollment of the Affordable Care Act. It's a disaster. The assumption that millennials would sign up for healthcare
never happened. The assumption that by covering people with no penalty for prior conditions, and they could sign up when they wanted to. And then
they come in, and all of a sudden, they get sicker than people had projected. So, somewhere along the line there is going to have to be
compromise and some subsidy. Whether they package it up and call it a different name, or whether they actually repeal it and replace it. I'm not
focused there at all, Paula. Where I'm focused is, how do you transform healthcare? We can afford 20 percent of our GDP going into healthcare.
NEWTON: You think it's just too expensive?
SCULLEY: Here's the answer. It's already started. It was actually started within Obamacare. And what it is, is shifting from fee for service
to giving incentives to the health plans, and to the providers. That if you will take risk, we will expand the incentives, but you have to take
responsibility for the outcomes. And in that risk sharing model, they say we'll give you incentives but will also give you penalties if you don't
achieve it. I'm starting to see from my vantage point, that RxAdvance that the health care leadership wants to do that. And accountable care is what
it is called. And the media, people like you, need to understand what accountable care is. Because --
NEWTON: I have to leave it there. And I think a lot of people want to hear more because it can be debilitating for production in this country
when their employees do not have health care they need. I want to ask you very quickly. Did you call to congratulate him?
SCULLEY: I haven't, no.
NEWTON: Are you going to soon?
SCULLEY: We'll see.
NEWTON: OK. John Sculley, thank you so much.
SCULLEY: My pleasure.
NEWTON: President Obama's farewell international tour takes him to Peru next. Where his attention turns to the Pacific Rim. A meeting with the
new champion of free trade.
(COMMERCIAL BREAK)
[16:30:13] NEWTON: Hello, I'm Paula Newton. Coming up in the next half hour of QUEST MEANS BUSINESS. Jeff Bezos says he loves Amazon's new TV ad,
which looks a lot like a comment on Donald Trump's America.
And the boys are back in town, the original Top Gear team will return with a brand-new show, don't call it Top Gear. Now before that tough, these are
the top headlines were following were following this hour.
Donald Trump has settled the civil fraud lawsuits over Trump University for $25 million. Students sued the now defunct program saying they did not
receive the education that was promised. The New York Attorney General, Eric Schneiderman, has called it a stunning reversal of Donald Trump's
position.
U.S. President-elect Donald Trump has announced three key members of his national security team and they're all considered hardliners. Alabama
Senator, Jeff Sessions tapped for Attorney General, retired Army Lieutenant General, Mike Flynn for national security advisor. And Mike Pompeo for CIA
director. Senator Ted Cruz who ran against Trump in the Republican primaries was mentioned as a possible pick for Attorney General. He
expressed his support for Sessions.
(BEGIN VIDEO CLIP)
TED CRUZ, U.S. SENATE REPUBLICAN: Jeff Sessions is a good friend and I think he will make an excellent Attorney General. He a strong, principled
conservative. And we're going to need a strong attorney general to restore integrity in the Department of Justice. One of the saddest aspects of the
Obama administration has been leaves the willingness to have a corrupt the Department of Justice, and creates lawlessness. And I am confident that
Jeff Sessions will bring back integrity to the United States Department of Justice.
(END VIDEO CLIP)
NEWTON: The Syrian Observatory for Human Rights says more than 1,000 people have been killed in Aleppo. That's just since a cease fire agreed
on by the U.S. and Russia fell apart in September. Now the group says that most of the deaths were in rebel controlled areas in airstrikes and
shelling.
A legal advice group in the U.K. says a British tourist has been arrested in Dubai on charges of having extramarital sex after telling police she was
raped. Now the group detained in Dubai says the woman was gang raped by a group of British nationals. The group's founder says the woman has been
released on bail. But she has now had her passport confiscated.
A British teenager has been cryogenically frozen after she died of cancer. It was the 14-year-old's dying wish. She said she had to go to court to
win the right to carried out. She wrote to the judge that she wanted the chance to live again if a cure for cancer is found even hundreds of years
from now.
Air Force One is on route to Peru. Before departing Germany, President Obama told key European allies it's time to work with Donald Trump even at
a moment of great change. Especially at a moment of great change. Mr. Obama urging the leaders of Germany, France, Italy, Spain and the U.K. to
tackle common challenges based on the core values that define the U.S. and Europe as open democracies in.
(BEGIN VIDEO CLIP)
THERESA MAY, BRITISH PRIME MINISTER: It gave us an opportunity to thank President Obama for the contribution that he made over the years and to
wish him well for the future. But also, to discuss a number of the key challenges that we face, Daesh, Syria, Russia, migration challenges that's
we will deal be by working together. By working collectively.
(END VIDEO CLIP)
NEWTON: President Obama's next stop the APEC summit where the impact of Donald Trump's victory will be keenly felt and that is where we find our
Shasta Darlington. She joins us now from Lima, Peru. Let's turn first, and it is incredibly shifting paradigm as these leaders meet in Peru.
Let's go first to the issue of China. And the fact that Xi Jinping will arrive there shortly. Again, and with a whole new American administration
to deal with.
SHASTA DARLINGTON, CNN CORRESPONDENT: That's right, Paula. I mean, this is not the summit that it was shaping up to be even just a few weeks ago,
it's the final stop on President Obama's international tour. But the name that seems to be on most people's lips is President-elect Donald Trump.
And this is supposed to be a summit all about free trade. Really promoting free trade and of course we all know that Trump has spoken out pretty
forcefully against a lot of free trade deals. But what we're seeing is that China is positioning itself to take advantage of some of these
opportunities that could be created.
(BEGIN VIDEOTAPE)
[16:35:00] DARLINGTON (voice-over): The world's rising power singled out for the wrath of Donald Trump in the lead up to the U.S. election.
DONALD TRUMP, U.S. PRESIDENT-ELECT: We can't continue to allow China to rape our country and that's what they're doing. It's the greatest threat
in the history of the world.
DARLINGTON: He threatened to slap 45 percent tariffs on one of America's biggest trade partners. Trump's victory, arguably bad news for U.S./China
relations. But if he turns inward, focusing on domestic issues, as he suggested during his campaign, it could provide an unexpected boost for
China's regional clout.
MEREDITH SUMPTER, EURASIA GROUP: Strategically Beijing will be under less pressure from a less active U.S. presence in the region. So, Beijing's
operating environments will actually be freer.
DARLINGTON: To start with President Barack Obama dream of signing the Transpacific Partnership or TPP trade deal, with 11 countries and excluding
China now appears dead in the water.
DARLINGTON (on camera): Which means is going to be Beijing, not Washington, seeking support for its regional trade deal here in Lima when
the leaders from 21 nations meet for the Asia-Pacific Economic Cooperation Summit this weekend.
DARLINGTON (voice-over): Will we see leaders here warming to the Chinese president's Xi Jinping proposed trade deal? Perhaps joining the ranks of
the Philippines, Rodrigo Duterte, who is already in Beijing earlier this month, seeking investments. Despite the country's historically strong ties
with the U.S., he's been an outspoken critic of Washington and Obama.
RODRIGO DUTERTE, PHILIPPINE PRESIDENT: You can go to hell. Mr. Obama, you're going to hell.
DARLINGTON: China may also have more room to flex its military muscle if U.S. alliances weaken. Japan and Korea rely heavily on the U.S. for
military support. But Trump threaten to withdraw the support unless they pay more for it. In the South China Sea, China has aggressively sought to
wrest control of the important trade route from its neighbors. Using island building and land seizures. The U.S. has been viewed by China
neighbors as a stabilizing force.
SUMPTER: As long as Donald Trump does not invest considerable time and energy to chart out a multilateral strategy for the South China Sea, China
will have greater latitude to be able to pursue its interests.
DARLINGTON: In the end, president Trump will spell major changes, but might not put the brakes on China's assent.
(END VIDEOTAPE)
DARLINGTON: And it is not just Asia, Paula, China has also been strengthening its presence right here in Latin America where it's replaced
the United States as the major trading partner. Countries like Brazil and Chile. And after the summit here President Xi is going to visit Ecuador
and Chile as well. Obviously, making moves in this region here.
NEWTON: Yes, and we'll see how Donald Trump response to that, because a lot of people are looking towards what he says about China dumping and also
its currency manipulation. A big debate to be had on that. Shasta, before we let you go, I mean, the big thing everyone will be looking towards at
this summit is the fact that Vladimir Putin and Barack Obama for the last time will be at a leader summit together. We are hearing they will have
some kind of huddle. I mean, wouldn't new love to be listening in on that one?
DARLINGTON: Absolutely, Paula. There are reports that they're going to meet on the sidelines of the summit. We don't have the details yet. But
there's no doubt about it, this is interesting timing given that Obama just spoke out urging President-elect Trump to stand up to Russia and to
Vladimir Putin when Russia breaks with global norms or it really isn't corresponding with American values. And of course, he's talking about
Syria, about Ukraine. And if they do talk there is no doubt that those will be some of the main topics. Russia's military intervention in Ukraine
and Russia's backing of the Assad regime in Syria. I also assume they'll talk a bit about the upcoming presidency of Donald Trump, Paula.
NEWTON: Absolutely. Our Shasta Darlington will be following it all from Lima, Peru. Appreciate it.
Now, Donald Trump promises to usher in a new era in Washington, which could mean trying times for some national brands.
Now, I knew Amazon ad. You don't want to miss it. It's drawing fire for a perceived commentary on Trump's rhetoric.
[16:40:00] (COMMERCIAL BREAK)
NEWTON: Did you hear the one about a priest, yes, and an imam -- OK, a new add from Amazon featuring a priest, and an imam is being seen as a rebuke
of President-elect Trump's controversial statements on Muslims, take a listen.
(BEGIN VIDEO CLIP)
DELIVERY PERSON: Delivery.
(BEGIN VIDEO CLIP)
BALDWIN: Now the old friends buy each other knee pads from Amazon after complaining about aches and pains from decades of kneeling in prayer.
Likely would have only been considered a touching moment between friends if it had not been for the election.
Amazon CEO Jeff Bezos tweeted about how much he loved this ad. Wading into election issues is difficult territory for any company at the moment
believe me, it is a mine field. New Balance had to release a statement this week. A neo-Nazi website endorsed their sneakers after the CEO made
pro-Trump statements. GrubHub faced calls for boycott after its CEO emailed the entire company criticizing Trump's rhetoric and Pepsi also
faced a potential boycott over a fake news story about comments the CEO never even made. Mine field it is, to help us chart all of this is
branding and social media consultant Peter Shankman he joins me here now.
OK, what I like to say about brands is people say it is business, not personal, but when it's a brand, it's personal.
PETER SHANKMAN, BRANDING AND SOCIAL MEDIA CONSULTANT: Everything is personal. A brand never gets in trouble for just shutting up. Just be
quiet. Especially with this election. It has been so divisive and when Trump first walked in and said I'm going to solve the world's problems, it
started there. With the beauty of email and social media, it really moved into the public. We saw a woman who worked for a government entity in
South Carolina get fired for talking badly about Michelle Obama. We have not learned yet. No matter how many times I come on the show and say just
be quiet, we never do.
NEWTON: This, now more than ever, stay out of politics?
SHANKMAN: I tell all of my clients -- they are people, too. CEO's are people, too. They have skin in the game, especially if they're supporting
a candidate. You get out there and talk about your Giants, but people are not as passionate. When they're not as passionate about football as a
presidential candidate, then you have an issue. Not everyone thinks like them. That is a hard lesson to learn. Part of the social filter bubble
we're in that everyone on your Facebook feed is your friend and thinks like you, that's not how the world works. Companies need to understand that. I
think the Amazon ad was spectacular.
NEWTON: Companies have to realize, right, if it affects the bottom line, it affects shareholders.
SHANKMAN: Back in the day when Facebook first came around, and LinkedIn, I will just have a personal and a professional profile. I am sorry but it
does not work that way. If you're CEO gets arrested at 2:00 a.m. for doing something in Vegas he shouldn't be doing,
[16:45:00] "I was off the clock" doesn't count. Right? It no longer matters that it was 2:00 a.m. or your personal page. Everything lives
forever. It has to pass the preacher, parent, or boss rule. If it offends any of them, don't post it.
NEWTON: And now the Trump brand, where do we go from here on that.
SHANKMAN: It is the exception that proves the rule. Look, I can't believe he said that, he will be gone in six months. He defied every slice of
logic we can apply to this. At the end of the day, what we're e seeing, with the breaking news about the university, he settled. He is not a fan
of settling. If nothing else, the Trump mentality of doing what I want, we're starting to see that fade because someone said you can't take the
oath of office with a lawsuit over your head. Settle it and get it done. So, he is starting to listen a little bit. How long he will last before he
started to have seizures and gets his twitter back is a good question. I don't think very long.
NEWTON: Your bottom line piece of advice to navigate the next four years. I think in America they know what is going on, but for international
companies, what do you say to them?
SHANKMAN: Politics has always been strange and difficult to bring up and very scary to bring up.
NEWTON: Even in our own families?
SHANKMAN: Thanksgivings this year, I'm going to Asia, I don't even want to deal with that. The number one rule for brands and companies here and
abroad, there are so many other topics. I'll give you good jokes, just stay away from politics at least right now. It has been nine days since
the election and I can't go on Facebook, it's nothing but political. It has never been as strongly as divisive as it has been this year.
NEWTON: Thank you, we appreciate it. The dream of helping paralyzed people walk again is becoming result. Exoskeletons are nothing short of
extraordinary. They were on display this weekend at sporting event called the Cybathlon on a special Europe 2020 report. And Richard explored the
competition linking man and machine.
(BEGIN VIDEOTAPE)
QUEST: First came the Olympics, then the Para-Olympics. Now the cyborg games, where athletes known as pilots are put to the test on an obstacle
course consisting of everyday challenges. Switzerland is the perfect stage to host a crowd of 5,000 people to watch this unprecedented event.
ROBERT REINER, FOUNDER CYBATHLON: Switzerland is number one in robotics per capita, that means it has the highest density of science, especially in
robotics and by biomedical engineering. Also, some say Switzerland is the Silicon Valley of robotics.
QUEST: The road to the Cybathlon begins with stories like Werner's.
WERNER WITSCHI, PILOT, VARILEG: I was on top of a saw mill. The roof was broke and I fell in the saw mill. I woke up in a hospital and they told me
I'm paralyzed at the waist.
QUEST: A team of students had other ideas. Werner, they believed, would walk again. He became a pilot for an exoskeleton known as Varileg with
incredible results.
WITSCHI: I think the first time I realized that I'm staying in an exoskeleton, my wife was there, and I stand up, and I can look her in the
eyes.
PATRICK PFREUNDSCHUH, MECHANICAL ENGINEER, VARILEG: The special thing is that we are using a third motor on each side that can regulate how the knee
should behavior and we can adapt to the circumstances and the surroundings better.
QUEST: When it comes to the big day, paralyzed physical therapist Philip Wipfli will represent team Varileg. The event consists of six disciplines
using powered prosthetic limbs, exoskeletons, wheelchairs, and even brain power, moving computer characters with the strength of the mind. Phillip
competes in the powered exoskeleton race cheered on by the team.
[16:50:00] He may not win, but the honor of progressing this technology is more than rising up.
PHILIP WIPFLI, PILOT, VARILEG: It is about taking part and bring everything out that
more development and more technologies come up very soon.
WITSCHI: You cannot replace the wheelchair, the first generation. I think in 20 years there will be some exoskeleton on the market and then in the
morning, you can decide will I take the wheelchair for the day or the exoskeleton.
QUEST: When it comes to the race in solving life changing challenges, Switzerland is well and truly on its feet.
(END VIDEOTAPE)
NEWTON: And we will be back with more news in a moment.
(COMMERCIAL BREAK)
BRANDY ZADROZNY, REPORTER, THE DAILY BEAST: It all started in 2010, another class action suit came in 2013. And then came along the New York
Attorney General suit as well. So, that is three suits, all being settled today, for $25 million. I guess some of that is going to 6,000 victims in
New York, and Florida and California, and $1 million going to penalties for New York state.
NEWTON: Do you have a sense that it is the kind of settlement that the students were looking for?
ZADROZNY: I mean, I think at least according to New York Attorney General Eric Schneiderman, he was asking for a settlement for a long time. These
students are elderly and poor, and most just wanted something back and they wanted to be done with the whole thing.
NEWTON: It seems like they got their wish with Donald Trump being elected. They call it a stunning reversal.
ZADROZNY: I think at this point, the judge Curiel in the California case was really pushing both sides to settle. I can't see how much further --
was he going to go on trial as President? What would have been discovered during the trial, what would have come out. I'm sure he just wants this
all to go away.
NEWTON: And yet the actual settlement amount -- Trump University and the stain it had on it, this is capitulation, I mean he admitted to having done
something wrong.
ZADROZNY: I think part of that settlement will be that Donald Trump doesn't have to admit guilt. Which he doesn't like admitting guilt to
anything.
[16:55:00] NEWTON: He also doesn't like to settle. And I know interviewing some of
the students they knew that and they knew what they were up against because he hates settling.
ZADROZNY: He said over and over again I will never settle, it is the principle of the thing, so this must really have to stink for President-
elect Trump.
NEWTON: And yet as you said we have talked about here, he is clearing the decks. Did you have a palpable sense of relief and do you think from the
attorney general and also really from judges who have to go through these cases?
ZADROZNY: I mean, I'm sure the attorney general is relieved to be done with which whole thing, and no one is safe from Donald Trump. The lawyers
on the other side, the victims of the case, the judges, attorney general Eric Schneiderman, everyone was maligned in the press, to his supporters.
It must have been a nightmare. I just really can't -- for myself as a journalist, I'm sure everyone is glad it's over. However, I am really -- I
think it is unfortunate that Donald Trump won't have to face his victims or the victims of Trump University at trial.
NEWTON: And when you look at the settlement, if it is $25 million, 6000 claimants, that's not a lot of money in terms of actual cash in the bank.
Do you think this will still sting some people?
ZADROZNY: I talked to an ex-marine, 32 years old, got out of the marines, and through Trump University courses was instructed to take out basically
$700,000 in loans and pay tens of thousands to these people, these hucksters. So, no his life is incomplete and a few thousand dollars in a
settlement isn't going to fix that. But I am sure he's glad to get something back, and at least a little bit of admission of guilt from Donald
Trump and Trump University.
NEWTON: That's it for QUEST MEANS BUSINESS. I'm Paula Newton in New York. Stay with us for more news here on CNN.
END
