Return to Transcripts main page

QUEST MEANS BUSINESS

Trump Advances in Key Battleground States; Typhoon Meranti Makes Landfall in China; Bayer Seals $66 Billion Merger Deal; Juncker: EU is Facing an Existential Crisis; Siemens Invest $5.6 Billion in Argentina; Apple's Tim Cook Drops in On Harlem School; Clinton Releases Medical Records. Aired 4-5p ET

Aired September 14, 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] RICHARD QUEST, CNN ANCHOR: The bell is ringing a couple of seconds late. The market is down 34 points. Had been up for most of the

session. Gave back the gains towards the close in the last hour or so of trade. And I haven't got a good feeling about today's gavel. And I was

quite right. It was a wimpy gavel, but trading is now over on Wednesday, the 14th of September.

Tonight, Donald Trump marches on in the battleground states. New CNN poll numbers have just been released. They are disturbing for Secretary

Clinton.

Consider it done and dusted. The chief executive of Bayer tells me about the year's biggest merger deal with Monsanto. And good morning Mr. Cook.

New York children get a very special visitor to the classroom. I'm Richard Quest, live from New York City, where I mean business.

Good evening, new poll numbers have just been released by CNN, and it shows the swing states are swinging and Donald Trump is leading. The new poll

shows that Hillary Clinton has lost ground in two crucial states. First, Ohio where the Republican presidential candidates there now leads by five

points. The numbers are 46 to 41 percent, among likely voters. It's 10 percent for the other two candidates. Then, in Florida, the race is too

close to call. Trump is ahead by three points. Now that is within the margin of error. The CNN/ORC poll.

So, remember, in the United States, it doesn't matter how many votes you get, it's not like a referendum or a national number. It matters where the

numbers and where those votes are. So this is CNN's projection for the race. Early days when it shows you where is expected to. You have the

blues which are the solid Democrats. The light blues which are the leaning Democrats. These are the battleground states. And then you've got the

leaning Republican and are the solid Republicans.

Now if you look at those -- and the Democrat and solid Democrat, Hillary Clinton has 273 electoral votes. Now that's three more than she needs and

Donald Trump -- so look at the difference -- 273 to 191, he is way behind, but then you have the battle ground states. Those in the middle. Now what

happens if Trump wins Ohio and Florida? Well, then, he still comes up short. Donald Trump needs to gain momentum in swing states or flip states

leaning towards Clinton. Though you see the way the numbers will change depending on how you actually do the actually mathematics.

Mark Preston is executive editor for CNN politics and explain to me, while I just look at this, what the significance of the new poll really is. What

it tells us.

MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: So a couple things, one, is we saw a national poll from CNN last week that showed that Hillary Clinton

was losing overall support across the country. And what we seen now in these two polls as well as from other news organizations is that it is

affect her in the battleground states. The state of Florida right now as you note in the state of Ohio --

QUEST: But it's shown here at the moment as solid Republican, the state of Florida.

PRESTON: Right. Not solid Republican necessarily, battleground state.

QUEST: Right.

PRESTON: But if you were top assume that the polls today were to be the result in November, Donald Trump would pick up Ohio and Florida. Must-wins

as you note for Donald Trump. Not necessarily must-wins for Hillary Clinton.

QUEST: So Hillary Clinton can reach the 273 without Ohio and Florida.

PRESTON: Correct.

QUEST: Donald Trump stands no chance or mathematically will be very difficult without Ohio and Florida.

PRESTON: Correct, but here's the problem for Hillary Clinton though. The domino effect. If you look now at the state of Pennsylvania and if you

look at Ohio -- absolutely. Look at this. What here in the U.S. we call the industrial U.S.

QUEST: Which is all around this area.

PRESTON: All right in there in the state of Michigan perhaps. Wisconsin, is Hillary Clinton can now have a domino effect. Because at that point,

you will see that number at 273 start to decrease and then the number on his side start to increase.

QUEST: But, does follow as night follows day? That if Hillary Clinton loses support in the states of Pennsylvania and these lower industrial,

sort of old rust belt states.

[16:05:03] She automatically then will lose support in these states towards the Midwest. In the northern region.

PRESTON: Nothing is automatic, but you have to think that the voters, for instance, in the state of Ohio have the similar concerns as those in the

state of Pennsylvania and Wisconsin that has to do with and as our viewers around the world know is our trade policies where a lot of factories were

operating in these states and where unemployment was high and where people are pretty frustrated with the direction of the country right now. They

have a similar mind melt about the direction of our country.

QUEST: Does this -- do these new numbers reflect -- are they reflective, I should say, of the events of the past week? The pneumonia, supposed lack

of transparency, the way in which it was handled? Is that reflected in these numbers?

PRESTON: Yes, well it certainly has fueled where Hillary Clinton is now. This was a trend again that we saw started after the Democratic convention,

we saw the malaise, so to speak, of August, and Hillary Clinton had an eight-point national lead. OK, nationally she had an eight-point lead.

That has since been evaporated. However, these events over the past weekend certainly had some play into where we are right now.

QUEST: Those couple of states out in the West, which remind us which ones that will be out in play or that will be of interest in the West.

PRESTON: Ok, so we saw another poll from another organization now in Nevada today that shows that Hillary Clinton is losing the state of Nevada.

That is the light blue, aqua blue. A very important state. A huge Hispanic population. The state of Colorado as well, which we think will

end up for Hillary Clinton at this point. Will very likely go l go to Hillary Clinton. That's another state that Donald Trump really needs to do

well in. He's a win.

QUEST: Fascinating movement.

PRESTON: Right, and one more thing to add. We saw President Barack Obama on the campaign trail. Very important. Specifically, because what we've

seen in Florida and Ohio is that when you look at young voters right now. Which was part of the Obama coalition, right now Hillary Clinton has a six-

point lead in Florida, and it is even in Ohio. That's why he needs to be out there for her.

QUEST: Stay where you are, don't go anywhere. I need to get your opinion on another area. Hillary Clinton is demanding that Donald Trump clarifies

business links to foreign leaders. A new report in "Newsweek" is alleging that the Republican nominee has serious conflicts of interest in his

businesses overseas and interests of the United States. For example, South Korea where he collaborated with Daewoo, one of the largest nuclear

companies in South Korea, which Trump says should get nuclear weapons.

When it comes to India, there's a claim that close linked the multiple political parties in the country. Donald Trump Jr. is said to have

lobbied government officials directly. The Trump organization is planning more business in India. And in Turkey, Trump's business partner is accused

of criminal activity. That puts Trump at odds with the Turkish government. The author of that report spoke to CNN and said that the Trump organization

can't cut all ties with its foreign partners and it raises questions about influence.

(BEGIN VIDEO CLIP)

KURT EICHENWARD SENIOR WRITER AND COLUMNIST, NEWSWEEK: You can't be in a situation where any foreign partner could walk up and say, I'm going to

give money to the president of the United States by striking a deal in Moscow. Trump is using the ridiculous line of he'll put his company in a

blind trust. Which is like saying I'll put my 100 million shares of Apple in Apple incorporated into a blind trust. I know what's there. You know,

the blind trust would be the most transparent thing of the Donald Trump administration. And so it's impossible. He would have to quit and never

return to the Trump organization as would his family. Otherwise, you have a situation where the president of the United States, financial interests

are in conflict with the interests of the United States in terms of national security.

(END VIDEO CLIP)

QUEST: Mark Preston, the reality here is we are in unchartered territory once again. Because there's never been a president with as many commercial

interests. Jimmy Carter had his peanut farm and he had various businesses. Which went into the blind trust. But we never had of a conglomerate or

property developer.

PRESTON: Certainly not. And the way that the Trump organization is set up, it's not set up as one organization. It's set up as many, many, many

organizations that have an incredible amount of business overseas with our allies and some places our enemies as well.

QUEST: So finally, briefly, is Trump being pushed hard enough on this question? And do the Americans really even care about it?

PRESTON: I think they care more about this question and would care more about this the question if we continued to talk about it in the American

media. I would say this, 55 days before the election, I as a journalist have to say, we failed not look at this a year ago. I would also say that

the Republicans that were running against him are probably doing a lot of second guessing themselves right now because had they brought this up in

the primary perhaps they would be the nominee at this point.

QUEST: As always, sir, great to be on with us.

Breaking news that the hour, a typhoon, Meranti, has made land fall in China.

[16:10:00] Before hitting the mainland, slamming into Taiwan with winds up to 175 miles an hour. Matt Rivers is in Xiamen, China, how bad is it?

MATT RIVERS, CNN CORRESPONDENT: It's pretty bad, Richard. We are about 20 kilometers southwest of where this typhoon made land fall. And before this

elevator goes away, I want to show you some of the impacts here. This was the last working elevator in the hotel were staying in right now. And as

you can see, it is no longer working because the rain and the wind have really wreaked havoc here. We're up on the 22nd floor and we can show you

holding a flashlight because well the power went out. Really quickly after it made land fall.

And you can see here, take a look at this door. This is to the executive lounge here in the hotel. You could see it swaying back and forth. That's

not because of wind. That's because the entire building has been shaking for about an hour now. As you mention, the typhoon made land fall really

bringing a lot of wind, a lot of rain with it. We're not peek of it now. And I wish you could feel what I'm feeling because it's very eerie. The

building is shaking back and forth because of the wind. And we're expecting this to last for several more hours, and into the next couple of

days because then you have risks of flooding. You have risks of landslide. In addition to all the damage that might be created right now as these

winds continue to just absolutely really hit is this area very, very hard here in Xiamen.

QUEST: Well, the -- how well prepared is Xiamen and how well prepared are the authorities? Obviously in the preparation leading up to it, but ready

for the aftermath once it passes by.

RIVERS: Right. Well the city where we are right now is actually pretty good in terms of infrastructure. It's a pretty major city in China. It's

a port city. It's actually on its own island, but there's multiple bridges on and off. And so infrastructure wise, Xiamen, the city itself is pretty

good. Now that said, outside of the city in the suburbs, you have areas that are far less ready for this kind of storm, infrastructure wise.

And then if you're talking about preparations for the storm, the Chinese government does not have a good track record in terms it of preparing for

these kinds of things. They did issue warnings, but we arrived late last night, you would have expected to see lots of perhaps evacuations or people

leaving this area. And we saw none of that. In fact, there was very little traffic leaving the island out on the roadways. And so in terms of

infrastructure, not bad, at least in the city here, but in terms of people being prepared for this, in terms of the government perhaps doing

evacuations or really warning people what was going to happen, that could be lacking.

QUEST: Yes, well one final thought, you talk the swaying of the building, but of course the building is designed to sway, isn't it? It is that

flexibility in the building that will -- I'm sure it's still extremely disconcerting to feel a thing moving underneath you, but I think that's

what you were telling me. That it's actually flexing itself.

RIVERS: Right. And that is what we were supposed to have. We were talking to the hotel manager, and he actually told us, don't worry, the

building is supposed to sway, it's supposed to be able to stand up to storms like this. And so that was a little bit comforting in the sense

that, yes, the building is supposed to give a little bit with these winds that have reached up to 175 miles an hour.

But if you come in here real quick, I'll show you one thing before we finish up. When you see things like this, and perhaps it's not swaying at

the exact moment here. But this chandelier and you can see, the chandelier at points has really been swinging back and forth quite a bit. And so yes,

in your mind you know, OK, it's supposed to sway back and forth, but when you're on the floor and you're feeling it, it feels like you have a little

bit of vertigo. It's a little bit disconcerting, but a good thing.

QUEST: Absolutely. Matt come back and tell us when there's more is to report. And I'm sure in the meantime. The bar is there somewhere, even if

it's closed. You'll be able to soothe those aching nerves. We'll continue tonight.

It is the biggest takeover of the year, Bayer has finally landed month and tell after upping its offer once again. The Bayer chief executive will be

on QUEST MEANS BUSINESS after the break.

[16:15:00] (COMMERCIAL BREAK)

QUEST: It really was a case of third time lucky for Bayer which is buying Monsanto for $66 billion. Bayer is third bid and the U.S. seed giant was

successful. Regulators around the world must now give their approval for the deal. Which values Monsanto at $56 billion, there is debt there as

well of course. So you're talking about an equity plus debt deal. Bayer also takes on that $10 billion in debt. I spoke to the chief executive of

Bayer, Werner Baumann, and bearing in mind that he had made two previous offers before he came back with his final one. I asked why he kept

pushing. What was so important about this deal.

(BEGIN VIDEOTAPE)

WERNER BAUMANN, CEO, BAYER: This deal is important for our customers and both of our organizations that for a long time shared the joint vision that

we want to create an organization that can better serve growers around the world in their challenges to provide more safe, reliable, healthy food for

an ever-growing population. And the only way to do this is to do it with new technology and better solutions that each company individually would

not have been able to develop that well, compared to our joining the forces.

QUEST: There will be those that say, of course, the joining of the forces as you put it creates a behemoth. It creates a giant company. And

arguably, in the view of some, one that becomes too powerful in a particular area or industry.

BAUMANN: Well, the crop industry is an industry that is highly competitive. There are a lot of very formidable and strong competitors

that do as a matter of fact have many areas very similar offerings. Farmers don't like to be pushed into a single supplier that is going to

provide them with everything they need unless they deliberately decide to buy. And they only decide to buy because our customers are very, very

smart people. If there's enough value in it for them. That is what we think we can accomplish with our joint organization by driving better

solutions that ultimately allow farmers to generate higher yields on their acreage and with it provide for better farm income.

QUEST: Is it going to be a difficult sell to get it past the regulators? If you failed to do so it will certainly be an expensive one. You have a

$2 billion break-up, a fee that you would have to pay. So I'm guessing that you think you've got a very strong chance of this passing regulatory

approval.

BAUMANN: Well, Richard, as you can imagine, we have discussed intensively how we can make this combination successful, and we have a great advantage

from the get go. And this combination is all about growth and innovation with very little overlap between product portfolios and regional presence,

which of course in turn is going to help us in our discussions with regulators.

During the discussions and negotiations, both we in house, Monsanto and then us together, with our respective anti-trust counsel, have analyzed the

situation very carefully and we believe that based on this very limited overlap, we stand a good chance to have constructive discussions with

regulators around the world to ultimately get this combination to successful closing by the end of 2017.

(END VIDEOTAPE)

[16:20:10] QUEST: The Bayer deal in Germany with Monsanto.

Now Europe is facing an existential crisis, that's the warning from Jean- Claude Juncker, on Wednesday, as the European commission president delivered his state of the union address to the European parliament.

(BEGIN VIDEO CLIP)

JEAN-CLAUDE JUNCKER, PRESIDENT, EUROPEAN COMMISSION (through translator): The European Union is not in top shape at the moment. A lot has not turned

for the better. One can suggest that at least in part, we are dealing with an existential crises of the European Union.

(END VIDEO CLIP)

Alexander Stubb is the former Finnish Prime Minister. He joins me now from London. Alex, an extraordinary statement from the commission president to

admit that the union is facing an existential crisis. In other words, it doesn't know what it's purpose. Its raise on debt is. He then goes on to

say, "Never before have I seen so little common ground. Never before have I seen leaders speak of domestic problems. Never before have I seen

national government so weakened." This is a depressing litany from him.

ALEXANDER STUBB, FORMER FINNISH PRIME MINISTER: Well, I think it's straightforward, and very honest. We must remember that he has about 25

years of European integration in his bag. He has done most of the big posts. And I think he's right, you know, there's a big summit meeting in

Bratislava in Slovakia on Friday. And if you think about life 25 years ago, everyone was full of hope. The Berlin Wall had come down, the Soviet

Union collapsed, enlargement was about to take place. There's a velvet revolution. And everyone was hopeful. And now 25 years later, we're sort

of looking in Trump, Brexit, democracy under attack, so I think he's right to outline those difficult issues. I think it was a good speech.

QUEST: When I read it, I thought it was just -- it was a classic speech of somebody of an opposition leader shouting something needs to be done

without realizing he's the one who's got to do it.

STUBB: Yes, I mean, that's a good point. If you look at this week, basically three speeches or one letter and two speeches, and there a little

bit different. So you have the president of the European Commission, Jean- Claude Juncker, giving an institutional point of view. Then you have the president of the European Council, Donald Tusk, he is giving a pragmatic

view. Then you have, Nicolas Sarkozy, the former president of France who's giving a nationalistic view. This is the debate that we'll see coming up

day after tomorrow.

QUEST: Right. But at one point I noticed that the speech. He says, "Europeans are tired of the endless disputes, quarrels, and bickering.

They want concrete solutions to the pertinent problems that our union is facing. They have heard and seen these too often of summit conclusions."

Now the reality here is, you admitted, Alex, you admitted that Juncker has been there pretty much from the start. So how do you defend the accusation

that he's part of the problem, not the solution?

STUBB: Well, I think you have to always look yourself in the mirror. Whether you're a national leader or institution leader. I think he's right

to do that. I mean, if I was still around the table of prime ministers from the meeting on Friday, I would try to give three very simple messages.

Message number one, go slow on Brexit. We don't need to push that. We need to learn what happened. Number two, focus on the essentials. And I

think that's what Juncker is trying to say. Don't go for these grand visions. And then number -- I think, three, he should be also pushing, I

think, for a more clearer system that we have. And defense of European values, because that's what's under attack right now.

QUEST: So this idea, and I accept that he's got a very difficult card, hand of cards to play. This idea of a headquarters, a single headquarters

for some form of military commission, European Common Defense Force, this is what the British said was a European Union army. And they seem to be

right.

STUBB: Well, no, I don't think so. Actually what he's talking about is the structured corporation and closer defense corporation. I think Europe

you should do that. Obviously you have what 22 out of 28 EU member states in NATO. That's always going to be the core of the defense. But for

countries like mine, not in NATO, I think if you pursue a little bit of the European defense, it's a good thing. That's an initiative you'll also see

coming from France and Germany. And probably a little bit saying that OK, if you Brits are leaving, we're going to do more stuff on European defense.

QUEST: Alex, good to see you as always. Defending, defending the European project against all comers, Alex Stubb.

[16:25:00] STUBB: Someone needs to do it, you know.

QUEST: And you do it elegantly, sir. If I may say so. Alex Stubb joining me from London.

Now regarding Brexit, the European commission president said the EU respects and regrets Britain's decision to leave the EU. That seems to be

the standard phraseology people use when talking about Brexit. Still, President Juncker wants the U.K. to move quickly.

(BEGIN VIDEO CLIP)

JEAN-CLAUDE JUNCKER, PRESIDENT, EUROPEAN COMMISSION (through translator): We would be happy if the request for Brexit could happen as quickly as

possible so we can take the specific steps that need to be taken.

(END VIDEO CLIP)

QUEST: So that's the view, everybody wants Article 50, and they want it sooner rather than later. But what exactly it all means. Joining me over

in the C-suite, very pleased to have Jim Ratcliffe. Good to see you, sir. Make yourself comfortable. Jim, you have been on record and saying it's

not the end world, Brexit. Far from it.

JIM RATCLIFFE, CHAIRMAN, INEOS: I don't think so. No.

QUEST: And when it comes to the question of the single market, are you comfortable? You are and industrialists. Are you comfortable being

outside the single market with no -- with no unfettered access to it?

RATCLIFFE: Well, I mean, we're all over the place. I think the U.K. I think it's one of the world's biggest markets. It's one -- it's the top

five in the world. And that's important for Europe. The Germans don't want to not sell motor cars to the U.K. market, it's too big. And we have

London which is a big financial center. I think the U.K. and Europe, there sort of mutually interdependent really.

QUEST: Except and unless Europe decides to shoot itself in the foot by deciding that it needs to teach not just the U.K. a lesson, but it needs to

send that message.

RATCLIFFE: I don't think the people in Europe will want that. Businesses in Europe, the producers in Europe don't want that. They won't allow it I

don't think. And at the end of the day, people have got common sense. It doesn't make any sense to do that, really.

QUEST: So from what you're seeing --

RATCLIFFE: It's too big. U.K.'s too big.

QUEST: So from what you're seeing in your business in the post-Brexit world, and I accept, sir, it's still very early days. What are you seeing?

RATCLIFFE: No change so far.

QUEST: You're not having people saying we're worried about doing business with you?

RATCLIFFE: Not really. People have moved on I think in the U.K. mentally. They're not looking backwards, they're looking forwards. I think it's

going to be -- you know, the maybe, you know, a little bit of turn down for a year or two. Ultimately, it'll be a good thing. It would work both ways

with the U.K.

QUEST: Do you think so?

RATCLIFFE: Yes. I know it should.

QUEST: And yet, all the warnings that we got leading up to it -- now I agree, the treasury forecast, the dossier, the dodgy dossiers, the

recession that was going to happen.

RATCLIFFE: Yes, it was a political agenda there.

QUEST: But don't you think that there's still the risk of some other shoe to fall once it becomes clear, Article 50 is invoked, once it becomes clear

that there is going to be no access to the market?

RATCLIFFE: I think, you know, the end of the day, if the U.K. has businesses which are efficient and they work well, they produce good

products, then they'll sell them. They'll do well. I don't think it's going to be a function of some petty row between mainland Europe and the

U.K. You know, the U.K.'s an efficient economy. It'll do well. And the U.K. is an efficient economy. And it will continue to do so. We've got --

we've got an identical facility in the U.K. and Norway, one's in, one's outside Europe. And they both trade with mainland Europe, and there's no

difference between the two.

QUEST: Well, with respect, your Norway one, of course trades into the basis of the single market and the Norwegian solution.

RATCLIFFE: Yes, correct. Which we wouldn't want.

QUEST: You don't?

RATCLIFFE: No, I don't think the U.K. -- the U.K. shouldn't be made to pay to access the European market. That's silly.

QUEST: But that might be the price, you've got to pay.

RATCLIFFE: Maybe it is. I mean, will find that out. I think common sense will prevail. I don't think that -- I mean it could be, I don't believe it

will be.

QUEST: Right, and on that --

RATCLIFFE: Also, you've got the other side of this equation, which is loss of sovereignty, loss of control of your borders, immigration. All those

types of things. All this massive bureaucracy. And the people in Brussels telling us what to do. We don't really want that. You know, there are two

sides to the equation and maybe there is a bit of a trade off in the economy for a couple of years, but I think ultimately the economy will do

very well.

And those re-grexiteers, as I think --

RATCLIFFE: Yes, yes, there was a bit of that.

QUEST: Do you think that's subsided for now?

RATCLIFFE: I don't hear much of that now. I think most of us that's behind us.

QUEST: And that's, I think I can call you a Brexiteer.

RATCLIFFE: Yes, yes, I was always in favor of the common market, I was never in favor of the United States of Europe.

QUEST: So which arguably we've heard more of today from President Juncker, but when you have Theresa May saying Brexit means Brexit. You interpret

that as meaning, leaving even if they mean, so no single market?

RATCLIFFE: Correct it will be, yes. I mean, she has to otherwise she wasn't negotiating, can she? Otherwise --

[16:30:00] QUEST: Good see you sir. Thank you for coming in. Thank you very much.

Argentina's president says his country is open for business. Siemens has walked in and already put down $5.6 billion. Proving that will you hear

the top chief executives on QUEST MEANS BUSINESS as you just have. You'll hear from the CEO of Siemens after the break. QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest, delighted you're with us this evening wherever you are watching us. There's more QUEST MEANS BUSINESS in just a

moment. We're going to show you what it's like to be driven by one of Uber's driverless taxis in Pittsburgh. Hold on to your hats.

And the chief executive of Siemen's will tell me that the engineering giant is pumping billions of dollars into Argentina and he still wants more

certainty on Brexit. For all about this, it's CNN. And on this network, the news always comes first.

Typhoon Meranti has made landfall on mainland China. The storm has already hit southern Taiwan. It brings wins of up to 370 kilometers an hour. And

weighs almost 13 meters tall. It's the strongest typhoon in the region since super typhoon Haiyan hit in the Philippines three years ago.

Donald Trump has shared the results of a recent physical examination with a famous TV doctor. Both Trump and his rival Hillary Clinton have faced

calls to release more on his medical history. The Republican nominee appeared for an interview on the Dr. Oz show. And presented him with a

one-page summary of his most recent physical.

(BEGIN VIDEO CLIP)

DR. OZ, HOST, "THE DR. Oz SHOW": Why not share your medical records? Why not --

DONALD TRUMP, U.S. REPUBLICAN PRESIDENTIAL CANDIDATE: Well I have really no problem in doing it. I have it right here. Should I do it? I don't

care. Should I do it? It's two letters. One is the report and the other is from Lennox Hill Hospital.

OZ: May I see them?

TRUMP: Yes, sure.

OZ: So these are the report -- this is from --

TRUMP: Those were all the tests they were just done.

(END VIDEO CLIP)

QUEST: New CNN polls shows Donald Trump leading Hillary Clinton in two crucial swing states. In Ohio, the Republican nominee is five points ahead

amongst likely voters. In Florida, leads by three points. It's well within the margin of error. Even if Trump wins both states, CNN

projections show Hillary Clinton with an edge in the electoral college, which of course is what matters overall.

Brazilian state prosecutors have presented former president, Luiz Inacio Lula da Silva and his wife, with corruption charges. According to the

state news agency, the charges stem from a money laundering investigation and they're alleged that Lula benefitted illegally from a renovation

project in a beach town near San Paulo.

[16:35:00] It's always nice to have a vote of confidence, especially one worth $5.6 billion. And that's how much Siemens is pouring into Argentina,

which is a major win for the country's president, Mauricio Macri, who is trying to improve the country's business image. The Siemens chief

executive joins me from Buenos Aires just before we came on air. And I needed to know, bearing in mind, Macri's new policies, and the way the

Argentinian government is moving the country. Is he hearing the right things?

(BEGIN VIDEOTAPE)

JOE BAESER, CEO, SIEMENS: He's been in contact with the government for quite some time. I was visiting President Macri in May this year. In the

meantime, he was visiting us in Berlin. And today, we came together again and we announced that we are going to invest in Argentina. We signed an

MOU for about _5 billion. We bring about 3 billion financing. Create about 3,000 jobs. And give it a try here to invest in Argentina and bring

and help the country to bring it to the level that we believe it belongs to.

QUEST: Chancellor Merkel has been asking and challenging Germany's largest companies to explain why they are not employing more refugees. Does

Siemens intend to employ more?

BAESER: Absolutely. Because I have been talking to chancellor Merkel myself last week. And today there was a big meeting in Berlin where my

chief of human resources was attending. You know, Germany has a responsibility to also help the refugee crisis and deal with it. Because

there is no such country in the world. Which has been benefitting from globalization and export as Germany has. And that constitutes a

responsibility out of history also that we help the refugees. We have to find a home until the crisis in Syria and elsewhere is over.

So that also means that we needed to give them an opportunity and a perspective in Germany. We have already about 90 people who we trained

already. We also have committed to about 2,000 square meters of refugee homes that they can find a home in our premises. We also have installed

German courses for the refugees because if you don't know the language, they cannot be trained.

QUEST: And finally sir, Brexit. You said you're committed to staying in the United Kingdom and that is not surprising, but are you now more relaxed

about the Brexit situation? Or do you still have deep concerns bearing in mind the uncertainty over the single market access?

BAESER: Obviously first of all, we regret the decision of the English people because, you know, Europe without the U.K. is not as good a Europe

as it could be. Secondly, however, we need to respect the will of the population. And about two weeks after the Brexit vote, I took my whole

managing board of Siemens to go to the U.K. and talk to our employees and our customers. I also was giving a speech at the House of Commons and I

told them three things. First, they are committed to stay. Secondly, we are not going to cancel investments which we have ongoing, but third, we

need to have certainty about what the milestones and the steps are, how U.K. will handle the Brexit.

(END VIDEOTAPE)

QUEST: Chief executive of Siemens talking to me from Buenos Aires.

And imagine you turn up to school and you find a very special visitor who is in the classroom? And the chief executive of the world's one of the

most valuable companies, Tim Cook. He was at the primary school to look at iPads and the like. We'll talk to the principals of the students when we

come back.

(COMMERCIAL BREAK)

[16:41:25] Now in my day, you had a piece of chalk and it was a big black board and you wrote on it and then we had erasers and things like that.

Well now of course it's all about the ABC's of this world. You swipe right and you use an iPad and before long, you've got into the digital economy.

Well, Apple's Chief Executive, Tim Cook, visited a school in New York City to examine the success of a program that Apple calls ConnectED. It

encourages tech companies to donate technology to underserved classrooms. Apple's donated iPads, Macs, Apple TVs to more than a 100 school and not

only does that, it also trains the staff in dealing with new technology as it relates to the classrooms. Pamela Price-Haynes is the principal of

Pedro Albizu Campos School, where Tim Cook visited and Channing Guggenheim is one of the students. Welcome.

PAMELA PRICE-HAYNES, PRINCIPAL, PEDRO ALBIZU CAMPOS SCHOOL: Thank you.

QUEST: Good to have you here. And let's start with you, principal. How much notice did you get that Mr. Cook was about to arrive?

PRICE-HAYNES: Perhaps two days at the most. Monday there wasn't any school, so I knew on Friday. I had an idea on Friday that we would develop

logistic to execute having Tim Cook come to my school.

QUEST: What was it like? He's one of the most famous CEOs, one of the wealthiest CEOs and he runs the company that makes all of these wonderful

things.

PRICE-HAYNES: We were excited. We were just over the top. Because we wanted him -- to see Tim Cook is very important. Because he's everything,

really. But to know that he's coming to a school in Central Harlem, he's coming to my school, he's going to get to see how my students are using

this very essential tool for the 21st century. We didn't need anything more. That's it. That's everything.

QUEST: Principal, you have to forgive me, but you're being overshadowed today by Channing who the next generation, we're over. It's the next

generation that were interested in. So what was it like meeting Tim Cook? What did you show him?

CHANNING GUGGENHEIM, STUDENT, PEDRO ALBIZU CAMPOS SCHOOL: We showed him this app called Keynote. In the app you have to write about yourself, like

typing. It's really, really cool.

QUEST: Really cool. And when you showed him this really cool app, what was he like? Was he interested?

GUGGENHEIM: Yes. Very.

QUEST: What did he say to you. Can you tell me what he said to you?

GUGGENHEIM: Well he said, I want you to show me Keynote and if there's any errors, he can fix it.

QUEST: Do you use all these products? Do you use all this technology? Do you like using these iPad and iPhone and Samsung?

GUGGENHEIM: Yes.

QUEST: Principal, this idea in the school of technology, we know it's the future, but what role do you think companies like Apple have to play to

provide this technology for you? Where budgets and government just simply can't do it anymore.

PRICE-HAYNES: I would only imagine that there's some cohort of people or some component of the Apple company that are concerned about society, and

so how do you impact society? I think you should begin with children and in my building there is a K-8 school. Kids from about five years old to

about 14 years old. So you start with schools. Because -- OK, because you want to -- the children are your future.

QUEST: The children are the future.

[16:45:00] PRICE-HAYNES: And you are the future.

QUEST: Indeed, Channing, you are the future. Thank you for joining us. Thank you very much.

We're expecting a major announcement with regards to Hillary Clinton's health records. We now join CNN in USA.

JOHN TAPPER, CNN ANCHOR, THE LEAD: .released more medical information about the health of the Democratic presidential nominee.

The Clinton campaign did this largely because Secretary Clinton, we have to say, was caught on video Sunday, seeming to collapse. It happened after

Clinton kept the press in the dark after leaving a 9/11 memorial service. We have since learned that Clinton had been diagnosed with pneumonia two

days before the health scare. And she chose not to disclose her illness. I'm joined by CNN chief medical correspondent, Dr. Sanjay Gupta. Senior

Washington correspondent, Jeff Zeleny, and CNN senior political correspondent Brianna Keilar. And Brianna, let me ask you, what do these

new medical documents show about Clinton. What do we now know that we didn't know before?

BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT: There's not a tremendous difference to be honest. We know about a medication it says

she's on for a total of ten days, Levaquin. But --

TAPPER: For the pneumonia?

KEILAR: Correct, I believe so. We know specifically what kind of antihistamine she's on. Not just she's on antihistamines, but we knew that

before. That doesn't really round out any of our knowledge. Looking at her cholesterol, something I would ask Sanjay about, is that her

triglycerides appear so to have jumped. Her cholesterol is actually -- her bad cholesterol is actually down as well as her good cholesterol from the

last information that we got from her doctor, but her triglycerides have gone from 69 to 159. I'm not a doctor. So I'd want Sanjay to certainly

weigh in on that.

TAPPER: So let's begin. Let's bring them in right now. Sanjay, tell what you say this means and what more data you see in the documents that you

find interesting and important.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, you know, I agree with Brianna just assessed that. We are looking at something that's pretty

similar to what her doctor, Dr. Bardack released in July of last year. The triglycerides jumped, they were 60/94 it's a 159. I don't want to

speculate on what that means. Sometimes it could be as simple as if it was a fasting blood taken versus non-fasting blood taken. It's a question I

would certainly ask them.

And then there's a little bit more of a description of what happened with regard to the pneumonia and this diagnosis. She ended up having a CT scan,

we know, on Friday to try and make this diagnosis. That CT scan of her chest is what revealed this pneumonia. And she's on an antibiotic. The

antibiotic is Levaquin, typically taken for about ten days. And it sounds like again, according to the Dr. Bardack's note, that she's responding well

to that and doing well. But again, this is not a -- this is certainly not a release of medical records by any means. This is very similar in some

ways to what we got July of last year. There may be more coming. It's a little bit unclear. But those are the highlights, Jake.

TAPPER: And can that medicine you mentioned -- I'm going to botch the name, Levaquin, can it cause dizziness?

GUPTA: Not typically cause dizziness. There are side effects with this medication. One of the ones that it can cause, it can actually cause you

to have pain in certain joints and tendons, but not typically dizziness. Again, as, Jake, you and I talked about, the pneumonia itself could

potentially cause dizziness. Cause someone to be dehydrated. One of the other medications for the hypothyroidism can make someone what is known as

heat-intolerant. Meaning they just don't tolerate the heat as well. And the medications, the antihistamines again that Brianna was mentioning,

those can cause someone to be more dehydrated as well. So the combination of things perhaps. But the Levaquin as well has some side effects. Not

that one so much.

TAPPER: And Jeff Zeleny, why is the campaign releasing these documents now?

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Well, Jake, there's one simple reason, the campaign's been knocked off course this week with the

diagnosis of this. The medical issues aside from a political transparency point of view, Clinton advisors will tell you they've lost some ground

here. They are trying to put all of this behind them as she flies to North Carolina tomorrow to return to the campaign trail after spending the last

three days at home. They want everything to be finished in the words of one aide here. They're putting this out now to try and be more transparent

and to try and get beyond this.

But the question here is as always, will this be enough? The age of these candidates, 68 for secretary Clinton, she turns 69 next month. And 74 for

rival Donald Trump are quite old in terms of other recent presidential candidates. You know, will they release more going forward? We don't

know. But this, this afternoon, politically speaking is an effort to get beyond this and start getting back to the race. And Jake, the race is

suddenly a tighter one when she returns to the campaign trail tomorrow.

TAPPER: And the Clinton campaign very eager to point out they have released much more information when it comes to her health than Donald

Trump has. Brianna, what do we know about her recovery from pneumonia from the new information?

KEILAR: Actually, we're getting a statement in. So I'll tell you about the pneumonia, because Dr. Bardack says, "Hillary Clinton, is recovering

well with antibiotics and rest.

[16:50:00] She continues to remain healthy and fit to serve as president of the United States." This is also what she adds here though. Overall for

her health picture, "The remainder of her complete physical exam was normal and she is in excellent mental condition." So that's a really interesting,

you know, you've heard Sanjay talk about how important -- there's a number of certainly things that are important to look at. He said cognitive

function is one. So you see that her doctor there is speaking to that as well. In terms of the pneumonia and how she's recovering. Here she's

saying that she's doing well. She's been on antibiotics. We presume since Friday which is when she was first given that diagnosis. Jeff Zeleny had

actually reported that there was this consideration of Hillary Clinton just taking two days of rest. In the end she ended up taking three. And we're

expecting that she's going to be back on the trail tomorrow.

TAPPER: All right. Thanks, everyone. Sanjay, Jeff, Brianna, appreciate it.

A terrifying new warning about North Korea's nuclear capabilities like we've never heard before. That story next.

[16:55:00] (COMMERCIAL BREAK)

TAPPER: We're back with THE WORLD LEAD, now. Today the Kremlin accused President Obama of Russia phobia. This after the president said Vladimir

Putin was Trump's role model and reminded voters that Putin, "Invades smaller countries, jails his opponents, controls the press, and drives his

economy into a long recession." The president and the Clinton campaign have also suggested that hacks of the Democratic Party emails were done by

Russia, possibly to influence the election in Trump's favor.

Now in the last 24 hours, hackers exposed personal emails written by former Secretary of State Colin Powell and released more email us from the

Democratic National Committee. The DNC blames Russia, though it has not provided any evidence to back up that charge. Meanwhile, Secretary of

State John Kerry has been working with Russia on a ceasefire in Syria, now into its third day.

I want to bring in Republican Congressman Adam Kinzinger of Illinois. He served in the Air Force in both in Iraq and Afghanistan. He's not

supporting Donald Trump or Hillary Clinton this November. Let me ask you, Congressman, do you suspect that Russia might be behind these most recent

hacks as well?

REP. ADAM KINZINGER, (R) ILLINOIS: Yes, I'm not saying that from a special proof that I have. So I want to make that clear. But I think it's

pretty obvious they have an interest in this. They've tried to, whether it's through the DNC or maybe with Colin Powell now. Try to have an impact

on the election. We know they have very good offensive cyber capability. We also have very good offensive cyber capability, but it's definitely

worrisome. And I understand from a media's perspective having to report it the, but I kind of wish we could get to a point where if somebody's email

is hacked that it's just not considered news. Because we want people to have private conversations.

TAPPER: I agree, it's something we wrestle with, but once things are out there --

KINZINGER: Once it's out, it's out.

TAPPER: No, it's tough. What is the motive, do you think, of Russia trying to interfere in the election if you buy that that's what they're

doing?

KINZINGER: You know, if they're trying to interfere, I think Donald Trump has said things that are nice about Vladimir Putin before. And I think he

likes that. I think he likes to be -- I think he likes to have -- to be flatter. You've seen that. You've seen Donald Trump saying we have to

work with the Russians in some of the toughest places of the world where frankly, Russia, like in Syria, has responsibility for killing almost half

a million people. They're tearing apart Ukraine and Georgia. And this is what we've seen by Vladimir Putin and other countries. He tries to

intervene in their elections. So whether or not he's doing it, it's a big accusation to level, but there's a lot of reason to suspect it.

TAPPER: Let's talk about Syria. Because right now, with Secretary of State John Kerry is, we're into the third day of a ceasefire and Kerry has

been trying to work with the Russians, and it is a plan that has met with much opposition in the Pentagon, the generals there don't trust Russia --

KINZINGER: Right.

TAPPER: Kerry's answer is I don't trust them either, but 450,000 people have been slaughtered, I'm tried to do something. What do you think?

KINZINGER: Well, look, I don't trust Russia. Every time they come to the table to negotiate it's not because they have a humanitarian sense. For

goodness sakes, the Russians have been bombing medical facilities with the Assad regime, with the Iranians in Syria. To assume that somehow they're

interested in this humanitarian fix of just a tragic situation isn't true.

Now that the ceasefire is in place, let's hope we can get medical aid, some humanitarian aid in. Let's hope that maybe this lasts. If you get into

the nuance of what's happening. This stops at a time when western-backed rebels were on the offensive and it freezes their momentum. You begin to

see now of course the regimes going to rearm, the Russians are going to reposition. And I won't be surprised if whether it's a week, two weeks, a

month, you're all of a sudden going to see the ceasefire broken in a way that benefits the regime in Russia.

TAPPER: I hope you're wrong, as I'm sure you do to. One last question, I know you're not supporting either major party nominee for president. But

Donald Trump does represent your party. Are you surprised at how un- transparent he is being both when it comes to medical records and the fact that he is breaking with decades of tradition and not releasing any tax

returns?

KINZINGER: Not a lot of things with Mr. Trump surprise me anymore. I think as a lot of surrogates have said, he should release his medical

records in full and he should release his taxes in full. The American people deserve to know that. You know, at the same time, we have questions

about Hillary Clinton health. We should release that information too. And I think, you know, look, when you're electing the most powerful position in

the world, I think the American people have a right to that transparency. And to see what you're made of.

TAPPER: Congressman Adam Kinzinger, thank you so much.

KINZINGER: Thank you.

TAPPER: Is North Korea on the fast track to a nuclear weapons cachet. A shocking report from groups watching North Korea's every move says, Kim

Jong-un is well on his way to exactly that. Weapons experts believe by the end of this year, North Korea will have enough material on hand to build 20

nuclear bombs. This stunning claim comes after North Korea conducted what is believed to be its fifth and likely most powerful nuclear test. Last

week felt like a 5.3 earthquake. That's it for THE LEAD, I'm Jake Tapper, I turn you over to Wolf Blitzer who is right next door in THE SITUATION

ROOM, thanks for watching.

END