Trump Signs New Sanctions Against Pyongyang; Lagarde Says Economic Benefits Not Being Shared Equally; Nikki Haley Speaks After Trump Agrees to New North Korean Sanctions.
QUEST: Hello, I'm Richard Quest. As we continue with QUEST MEANS BUSINESS in just a moment, Christine Lagarde tells me her biggest fear for the global economy is come complacency and slow growth. We'll talk about that in just a moment. Mark Zuckerberg says Facebook will hand over those notorious Russian ads to U.S. Congress. And as we continue, this is CNN and on this network the news always comes first. Mexico's navy now says all children have been accounted for in an elementary school that has been the subject of search and rescue efforts. More than 48 hours after a devastating earthquake hit. Rescuers are now hoping to reach at least one person who may possibly still be alive. The quake has killed at least 250 people across central Mexico. Officials say the island of Dominica has gone into survival mode after being hit by hurricane Maria. People are in desperate need of food, water and medical supplies. Even the Prime Minister's homeless. At least 15 people on the island are known to have died in the storm. President Trump has announced new sanctions against North Korea targeting firms and individuals who trade with the country. He also says China has ordered to stop its banks doing business with Pyongyang. No official response from China's central bank. The Canadian Prime Minister, Justin Trudeau, took a dig at the United States during the United Nations on Thursday. Saying there is no country on the planet that can walkway from the challenge and reality of climate change. Remember, President Trump announced in July he's pulling the United States out of the Paris climate accord. Kenya says it's moving the new presidential election to October the 26th. The country's Supreme Court annulled last month's election. President Uhuru Kenyatta says that amounted to a coup. His opponent, Raila Odinga called it fraudulent. Wall Street's winning streak has come to an end. The Dow briefly had an intraday high and then it fell back -- very briefly. Look at it. Right at the beginning of the day. A smidgeon of green on the top left of your screen. Things turned thereafter. It was off 53 points, ending nine straight days of gains and seven days of record closures. The S&P and Nasdaq both closed slightly lower, as well. Let's put this into context. The Dow is still up 30 percent for the year and is closed at a record of 42 times since the beginning of the year. The IMF's managing director says she's worried about complacency as markets hit record after record and economies enjoy steady growth. Christine Lagarde is warning there's a whole generation that is yet to experience a serious market correction. Speaking to me, she urged governments to make structural changes now and ensure a rising economic tide lifts all countries.</s>CHRISTINE LAGARDE, MANAGING DIRECTOR, IMF: Most countries are growing, you're right. Particularly the case in Japan and Europe., less so in the U.K. And it's also the case in the U.S. and we had expected a bit more earlier on. But it's participating in global growth. But there are quite a lot of low-come countries, developing countries, that are still suffering. And that on a per capita basis, are not growing. So, I'm concerned about the development and the growth in Africa in general. There are a few exceptions where things are going OK. But in general, on a per capita basis, because there is a strong fertility rate in most of those countries, its growth is not there. Actually, it's declining. That's point number one. Point number two, I'm concerned about the kind of growth that is happening. In other words, is it inclusive? Is it shared? Are people benefitting from growth in general? Or is it going to be mostly channeled towards those countries or those categories of people who already have a lot? That's my second point.</s>QUEST: You know the answer to that -- the answer is, yes, it is.</s>LAGARDE: Richard, Yes. And that comes -- I'm coming to my third point. Which is, to make sure that it's inclusive. To make sure that we fight against gender discrimination. That we reduce excessive inequalities. Policy measures have to be taken and structural measures have to be put in place. And my concern here is that because it's better, you know, growing up 3.5 --</s>QUEST: And we leave the managing director. We join Nikki Haley, the U.S. Ambassador to the United Nations.</s>NIKKI HALEY, U.S. AMBASSADOR TO UNITED NATIONS: -- The United States was out in full force, and I think the U.N. felt it but I think it was extremely productive. You look at the beginning of the week and we started with U.N. reform. You the President and the Secretary-General rolling out massive reforms for the U.N. What was extraordinary was we had 130 countries that have now signed on to that reform. That is two thirds of the General Assembly, which is who will vote on this at the end. So, that was a great start to the week. Then, you saw the President's address to the General Assembly. And I think it showed the strength of the U.S. But it also asked the world to come together and it asked all the countries to come together as we fight these rogue regimes. And mainly, North Korea and Iran. And I think what you saw were how a lot of countries responded. They were very positive to the speech. And they appreciated how blunt and honest he was. I think that has been the overall theme from the international community this week. His how straightforward he was and how refreshing it was as they heard him speak. We also today, we met with our allies Japan and South Korea. Obviously, a lot to talk about with North Korea. And so, we had a good conversation with them. And the President reassured, obviously, Japan and South Korea. But they also talked about strategies going forward for North Korea. On Iran, that was the topic of conversation throughout the week. I think everyone was talking about the destabilizing activities that they continue to do throughout the Middle East, whether it is in Syria, Iraq, Lebanon, Yemen, and the list goes on. So, it is something we will continue to talk about and continue to move forward to make sure that were stopping any of their reckless behavior as well. We also cohosted a meeting with Secretary Boris Johnson, as well as the Dutch Foreign Minister, Bert Koenders, on human rights reform. And really talked about the fact that it need to be representative of its name. We have a lot of bad actors on that counsel, both the President and the Vice President spoke about it in their speeches and the need to see better quality countries that are on that counsel in order for it to be effective. Obviously for the United States to stay on it. If we do not see changes in the human rights council, we will continue to advocate for human rights, but will do it on our own if we have to. And then the Vice President attended a security council meeting yesterday on peacekeeping reform. We have made great progress these past several months in terms of reforming peacekeeping so that is actually going toward a political solution. It is transparent. It's accountable. But we're also giving the troops the equipment they need and the ability to be trained in order to do their job. Since we're introducing smarter peacekeeping and I think that came together in the peacekeeping reform vote that we had yesterday. One of the topics that everyone had to talk about this week, and all had an opinion on, was Burma. And as we're dealing with the crisis in Burma and we're seen how much migration has taken place from the Rohingya going out of Burma, every country is concerned. They are concerned that the military continues to be aggressive in their concerned that the government continues to be in denial. And so, I think you will continue to see the international community talk about that. I think you will only see them get more active on that as we go forward. And finally, today, the Security Council took a great step forward. It was a measure that I think the international community has been working on a long time. We certainly worked with our British friends on it. And that was ISIS accountability in Iraq. If you look at the fact that there have been mass graves, there is been all types of terrible conducts to women and girls in those areas. Whether it is what is happening with the Yazidis or the Christians, or the Sunni and Shia Muslims, what we now have is part of the U.N. body that's going to be able to go in there and actually collect evidence. And make sure it can be used in trials. So, that the victims finally have their say and get their day in court, or at least their families do it if they have lost loved ones. That was a big day for the security council today. And with that, there was obviously, a lot more. I think the president met with multiple countries. There were lots of talks and planning and productivity. But overall, we can say it was a solid week at the U.N. this week. And it was highly successful. But with that I will answer any of your questions. Yes.</s>UNIDENTIFIED FEMALE: Why do you expect this latest round of sanctions will work when an array of sanctions have failed in the past against North Korea.</s>HALEY: This is in reference to what Secretary Mnuchin talked about. This is pretty amazing because when you look at the sanctions that we have in place, North Korea is already feeling it. You can hear of the lines at the gas stations that they have. And the fact that they are having a severe reduction in revenues, is the sanctions are working. What this does is take it a step further. This says anyone that deals with North Korea, any financial institution that deals with North Korea is going to be punished. And so, I think it's important. And it's like Secretary Mnuchin said, if you're going to support North Korea then you have to be prepared to be sanctioned as well.</s>UNIDENTIFIED FEMALE: say that sanctions have been working and yet North Korea hasn't stopped nuclear provocation. Do you think that these sanctions are going to actually North Korea to end this?</s>HALEY: We always knew that the sanctions may not work. What the goal of the sanctions was always intended to be is to cut the revenues they can do less of their reckless behavior. If they do not have the funding for the ballistic missiles, for the nuclear production, then they can do less of it. That is the goal of the sanctions. It doesn't mean it will necessarily going to change Kim's attitude or his belief on what he wants to do, but it will slow down the production of the nuclear process going forward. Yes.</s>UNIDENTIFIED MALE: Ambassador, thank you. When the president spoke in his speech about totally destroying North Korea if forced to defend ourselves and our allies, what exactly did he mean? Under what circumstances when he considered totally destroying North Korea?</s>HALEY: Well, I think that's just common sense. I mean, if you look at it, we have said multiple times. The President said it. Members of his team have said it. We do not want war. That is the last thing anyone wants. We don't want loss of life. That's the last thing anyone wants. But at the same time, we're not going to run scared. If for any reason North Korea attacked the United States or our allies, the U.S. will respond. Period. That's what's going to happen. What you're seeing now is we continue to go through diplomatic measures. We continue to exhaust everything we have. And the key is that other countries actually support the sanctions and follow through with them and they also continue to isolate North Korea until we can get them to come to the negotiating table. But until then, that is just the reality. If they were to strike the United States, of course we would have to respond back.</s>UNIDENTIFIED MALE: Just to clarify. So, you are specifically saying that if North Korea attacks first.</s>HALEY: We can't play out the scenarios on what's going to happen, but obviously, it would take something very serious for the president to have to make a decision to do something back. But there's a lot of things between where we are now and that situation that can be done. There are a lot of military options that can be done. And so, the president's not going to spell out specifically what he's going to do, when he's going to do it or where he's going to do it. But there are many options that he's discussed with the national security team that should North Korea do anything irresponsible or reckless that he has to choose from.</s>UNIDENTIFIED FEMALE: Ambassador, thank you. Just a quick one on the sanctions on Korea and then I have a question on Iran. On Korea, the administration has said this is not aimed at China, but you heard the president say today that China has told it's central-bank not to do business with North Korea. Secretary Mnuchin said that he called on the Chinese. So, how is this not -- especially you talked about how China is really the main financial backer of North Korea. So, how can this not really be directed at China? And then on Iran, is there a way to talk about -- to ramp up pressure, is what you are talking about -- with Iran destabilizing activities throughout the Middle East, which I think a lot of your allies agree on, without violating the agreements per se as Secretary Tillerson said? I mean, is there a way to get allies to rally around more terrorism type and other sanctions while keeping the nuclear provisions in place?</s>HALEY: First of all, with the sanctions on North Korea, it only impacts those that continue to do business with North Korea. If China does business with North Korea, yes, it will impact them. If there are countries in Africa they do business with North Korea, it's going to impact them. So really, it depends on countries that choose to continue to support North Korea over the rest of the world that is asking them not to. In reference to Iran, you have a couple of processes that take place. On October 15, the president has the decision to make on whether to certify or decertify. And that's U.S. law. That has nothing to do with JCPOA or the Iran deal. That's U.S. law and U.S. law requires the president every 90 days to decide whether the Iran deal and other elements of the U.N. resolution, which would include ballistic missile testing, which would include arms smuggling, which would include supported terrorism, those things -- it asks the president to look at all of those things. And if he still thinks that the deal is in the best interest of the United States, then he certifies. If he thinks that the deal -- that the situation is not the best interest of the American public, then he doesn't certify. At that point, he goes to Congress. And he works with Congress on how to reshape the situation. But the Iran deal and U.S. law are two different things.</s>UNIDENTIFIED FEMALE: -- if he could decertify without specifically withdrawing from the deal?</s>HALEY: That's right. That's just the option that he has and that's the Corker-Cardin law that came into effect that allow that to happen. What I will tell you from the U.N. perspective, what we're looking at and what you're going to hear is very vocal on, is the fact that 23.31, the resolution that was in place, what we saw was it basically wrapped in with the nuclear deal. It said, if Iran did any of these things, it would be in violation. Since then, the Secretary-General has come out with a report that said, they have violated all of those things. Their support for terrorism, their arms smuggling, the idea they continue to do ballistic missile testing and they need to be called out for that. And that's something that you will see us do as we go forward in the United Nations to make sure they know that just because we did the nuclear deal, it doesn't give them a pass on all the other things they are doing wrong. Yes.</s>UNIDENTIFIED MALE: Ambassador, you said that in your opening remarks that one of the topic everyone has an opinion about this week was Burma. The president gave an 4600-word address today to the global U.N. body and which he didn't mention the word Burma or Myanmar at all. Do you have any direct input into the speech? Did you press him to address Burma in the speech that he gave and when you did the forum today?</s>HALEY: I can tell you he was very concerned about Burma. Because he's talked to the national security team and asked exactly what is going to be done. He asked the vice president to speak about it in his speech, which is why the vice president has. And he's been very involved in the decision-making. I think that he, like every other leader, can tell you we're scratching our heads over Burma. Because all this has happened in three weeks. You have almost 1/2 a million people who have left and the tragedies and abuse that happened there is something that a lot of people cannot stomach. So, no, it's mainly if you listen to all the leaders, everybody is just trying to figure out who can move the officials in Burma and where to go.</s>UNIDENTIFIED MALE: -- they don't think he has spoken publicly about it.</s>HALEY: Well, he's very concerned about Burma. And I think that I did talk with the vice president about it quite a bit. And that's why he was very passionate about -- but really, he was speaking because the president asked him to.</s>UNIDENTIFIED MALE: -- President Trump since he's taken office spoken directly with Aung San Suu Kyi and if he had do in the past few days or buddy in the administration talk to her about what's happening. And would publicly to do more in her role as state counsel?</s>HALEY: Not only have we pressed her, we present the military. So, we had two things happening. Secretary Tillerson did called her and did discuss the situation with her. But then also General Dunford is calling the head of the military to say, look, we've had a relationship with you, but this cannot continue. And we need to know what you're going to do about it. Yes.</s>UNIDENTIFIED FEMALE: Madame Ambassador, you've been very vocal on the shortcomings of the Iran deal and Iran's behavior. Perhaps beyond the strict confines of your job here, where does it come from? Is this your own direct opinion after hearing about Iranian because you're here? Or through conversations with the president or just talk a little bit about that.</s>HALEY: I have conversations with the president. He was very concerned about Iran. He was very concerned about the deal. And so, I went to learn about it. And to find out from the IEA. To look at the resolution, to look at the violations. And so, it was just digging deep on the situation of what we found. And then that's why I gave the speech on the scenario that the presidents being faced with on the decisions to be made. But this situation -- it's not an easy situation by any means. Because you look at North Korea and you look at the fact that for that for 25 years we were looking at bad deal, after bad deal, after bad deal. And broken promise, broken promise, broken promise. So, here we are again and we don't want to be dealing with the next North Korea. And so that's why he's taking it so seriously and saying we need to look at every aspect of this and make sure that it truly is in the best interests of the American public. Yes.</s>UNIDENTIFIED MALE: The German foreign minister said today that any disavowed of the Iran deal with reduce the likelihood of getting any similar disarmament deal with North Korea. Do you share those concerns that any reactions on the Iran deal might reduce the possibility of getting a deal with North Korea? And separately, as a point of clarification, do you support a full oil embargo on North Korea?</s>HALEY: So, I think let's go back to Iran in the first place. What I will tell you is, a lot of countries are going to have their opinions on whether the U.S. should stay in the deal or not. But those countries don't have Iranians saying, "death to America." They're not saying, "death to Germany." They're not saying all of those things. What we can see is terrorist attacks happening everywhere with ties to Iran. And that's something we need to be careful about. And so, it has never moved the U.S. to care about what other countries say. What does move the President is, are we doing everything in the best interest -- security interest for the American people. And that's what you're seeing is playing out. In terms of comparing Iran to North Korea, that's exactly what we're doing, is we had so many bad deals with North Korea and everybody looked the other way. And every time they broke that deal, they looked the other way. Well, where are we now? They now have a hydrogen bomb. They now have ICBM. So, if we don't do something and we make the same mistakes we made with North Korea, we will be dealing with Iran that has nuclear weapons and ballistic missile technology. And so that's the concern and that's what we're trying to do with that.</s>UNIDENTIFIED MALE: Madam Ambassador, the President said this week that he's made a decision on Iran. Can you tell us what it is?</s>HALEY: No.</s>UNIDENTIFIED MALE: All right. I wanted to try. On a separate issue, the President also addressed Venezuela in his remarks this week at the U.N., and he also had a meeting with Latin American leaders. Can you tell us a little bit more about what he said to them? And I understand in particular that they suggested that the President place an oil embargo on Venezuela would be the most effective way of addressing that problem. Is that something that the United States would consider?</s>HALEY: Well, I think that -- I was in the dinner with our Latin American friends, and I could tell you there was a lot of concern from all of them on what's happening in Venezuela. They have all tried. We saw they tried through the OAS, and Venezuela got out of that. We've tried to do it through multiple avenues to get to Maduro and let him know what's not acceptable. The U.S. has moved forward on sanctions, and they were not opposed to that. So, yes, there were some conversations on what they recommended going forward, but I don't think I should share that. I can tell you that there's a lot of support in Latin America to see Venezuela start to respect its people and go back to the democracy it's supposed to be. And I think every one of them was concerned about what's happening right now.</s>UNIDENTIFIED MALE: Can you share just your own thoughts about an oil embargo on Venezuela, though? Is that something that --</s>HALEY: Well, you know -- I mean, look, if things don't improve, all those options are always there, and so that's what we're watching to see. First it was sanctions and now we'll look and see. It's not off the table, I can tell you that. Q Ambassador, thank you. There's been a lot of speculation about your political future and your future within the Trump administration. Some people are even saying that you're gunning to be Secretary of State and trying to push Rex Tillerson out. Can you please address these speculations?</s>HALEY: I mean, there's going to be chatter about things. Ever since I was a legislator, people have talked about what I'm trying to do or what I'm supposed to do. What I'm trying to do is do a good job, and I'm trying to be responsible in my job. And I'm trying to make sure that I inform the American people everything that I know. That's what I'm trying to do, and I'm trying to serve the President and this country the best I can. If people want to take it to mean something else, that's their issue -- it's not anything I spend time on.</s>QUEST: That seems a good moment to leave Ambassador Nikki Haley at the United Nations. A lot of questions there, robustly answered by the ambassador. The gist of it I think is most important. She says refreshing bluntness and honesty from the U.S. President when he gave his speech, which she says has been welcomed by other countries in the United Nations and General Assembly. A Profitable Moment after the break.