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QUEST MEANS BUSINESS
BP Rig Worker Turns Whistleblower; Dubai Makes Financial Comeback
Aired June 21, 2010 - 14:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MAX FOSTER, GUEST HOST, QUEST MEANS BUSINESS: In deeper water, BP faces fresh questions over what it knew and when.
More wobble than float, Beijing takes baby steps toward unlocking its currency.
And an ace on, and off, the court, Venus Williams tells this program how she's making a business out of tennis.
I'm Max Foster in for Richard Quest. This is QUEST MEANS BUSINESS.
Could Tony Hayward, the chief of BP, get any more unpopular? Well, today he may just have achieved that. New extremely serious allegations against his company emerged that will increase the pressure on BP, and its share price.
Hayward, himself, is expected to arrive in Russia soon to try and reassure President Dmitry Medvedev, that the company can survive the current storm. Russia and the U.S. are BP's biggest areas of operation.
Well, two months after the explosion that destroyed the Deepwater Horizon oil rig BP is facing fresh scrutiny. A man who worked on the rig has come forward saying he was aware of a fault in a crucial piece of safety equipment in the weeks before the blast. And brought it to his supervisor's attention. Jim Boulden takes up the story.
TYRONE BENTON, WORKER, DEEPWATER HORIZON RIG: We saw a leak on the part.
JIM BOULDEN, CNN INT'L. CORRESPONDENT (voice over): The BBC is airing what it calls an interview with the whistleblower. Deepwater Horizon worker Tyrone Benton tells the BBC a leak in the safety equipment was identified weeks before the accident. Instead of being repaired, Benton says that piece of safety equipment was switched off.
BENTON: They just shut it down and worked off another part.
BOULDEN: It would have cost BP time and money to fix the leak, says Benton. And he says, BP and rig owner, Transocean were told of the problem in an e-mail by his supervisor. Tyrone Benton said in May he was suing BP and Transocean.
BP CEO Tony Hayward said in his testimony on Capitol Hill last week that he had not seen any evidence that cost was put ahead of safety before the accident. BP has said all along the rig and safety equipment was the responsibility of rig owner Transocean. Transocean did not respond when seeking comment.
No apologies from BP when CEO Tony Hayward came back to Britain, at least temporarily, after two months in the Gulf. He was seen on his private sailing yacht Saturday, off England's South Coast. BP said Hayward is in constant contact, quote, "no matter where he is." And says it was Hayward's first day off. American-based BP Executive Bob Dudley is taking a greater role in the long-term response, so it is not just all Hayward.
DAVID MARGULIES, CRISIS PREVENTION & MANAGEMENT EXPERT: One of the big mistakes BP made, and many companies make, is they put one person in charge of everything. You can't be the spokesman and run the clean up and deal with the federal government, and deal with the lawyers, and deal with the board of directors. The man is stretched thin. He's exhausted.
BOULDEN: Meanwhile, in an interview aired in his native Sweden, the chairman of BP Carl-Henric-Svanberg was asked if he regretted becoming BP chairman.
CARL-HENRIC SVANBERG, CHAIRMAN, BP (through translator): That thought has never even struck my mind. And some people may think that would be a logical thought. Even though it may seem a logical thought from the outside, that is not something that hits you. I'm fully committed to solving this issue.
BOULDEN: The BP board met again over the weekend to discuss how to raise funds to pay for the spill and how to calm the worries of partners, such as the Russians, about BP financial strength. BP now says the oil spill in the Gulf of Mexico has cost it $2 billion. Jim Boulden, CNN, London.
FOSTER: Well there have been a number of occasions in recent weeks when BP's boss seem to misread the mood of Americans and some of his comments have probably done BP more harm than good. Let's start here. On May 14, in an interview with "The Guardian" newspaper, the BP boss insisted the amount of oil should be put into context, relative to the size of the Gulf of Mexico, it was, he said, "tiny". A couple of weeks later, claiming there was no one who wanted to end the situation more than he did, he elaborated by saying, I'd like "my life back." An unfortunate choice of words, of course, after an accident that killed 11 people and shattered the livelihoods of many others.
Now, the start of June, BP went on a huge PR offensive to try sort all of this out. In the U.S. it broadcast national TV advert to say sorry. But the next day, President Barack Obama blasted the $50 million spent on this campaign. He said the money should have gone to helping people on the Gulf Coast instead. Still, there are some people who say these the mistakes of a man under a huge amount of public pressure.
MARGUILES: Well, I think he's-honestly, I think he's really overtired. One of the big mistakes BP made, and many companies make, is they put one person in charge of everything. You can't be the spokesman, and run the clean up, and deal with the federal government, and deal with the lawyers, and deal with the board of directors. The man is stretched thin. He's exhausted.
And you know, if you are an airline pilot you can only work so many hours before you have to rest. There is no rule like that for CEOs. So, I think if he were rested and really thought about that-had the time to think about that, he probably wouldn't have said those things. But when you are stressed, you are tired, you are under pressure, you are constantly doing interviews. Something you say is going to go wrong. And, of course, when you have enemies, they are going look for anything you say to use against you. So, I think it is more the idea that the is extremely tired and also that there is not a devil's advocate in the company. You need somebody-and that is the role we play as outside consultants-to say, boss, that is really not a good idea. This is how the rest of the world will look at it.
FOSTER: Robbie Vorhaus is an expert in crisis communications. He joins me now from New York, via broadband.
Robbie, thanks for joining us again. We've been following this with you over the days, haven't we? We were just hearing there about how he would have received some advice, Mr. Hayward. Do you think he's taking that advice? Whose fault it is? Is he getting bad advice, or he just not taking advice?
ROBBIE VORHAUS, CRISIS COMMUNICATIONS EXPERT: Well, Max, you know, there is a-time when a leader will take you advice, and a time when they won't. Obviously, it is there prerogative. But it is-you know, to be a leader, you need to be able to have a lot of opinions and then be able to make them and take the responsibility. That's why you are paid the big bucks.
And in this case I think that Tony Hayward has shot himself in the foot a couple of times. And I think over the weekend he has finally shot himself in the head. And I think that as I wrote in "The Huffington Post" about six weeks ago, we are looking at a dead man walking. BP can no longer continue to have Tony Hayward as their face, as their voice, or even as their leader in this crisis.
FOSTER: He's come under a lot of personal attack from the American public, and the White House, of course. Let's hear what the White House had to say on this over the weekend.
(BEGIN VIDEO CLIP)
RAHM EMANUEL, WHITE HOUSE CHIEF OF STAFF: This is just another PR mistake in a long line of PR mistakes. But I think what you have to really measure is, what are we doing to deal with this problem? What is BP being forced to do to deal with this problem, both containing the well, getting the $20 billion into the escrow account? That is the measure here.
This will be fodder, as you would obviously ask this question. People will chew over this. But don't take your eye off the major priorities and the key goals here, which is dealing with the problems down in the well, and dealing with the problems in the region, as it makes it important the people getting the resources they need to restore their lives and restoring that coastline to its environmental purity that it had at one point.
(END VIDEO CLIP)
FOSTER: But it is interesting, Robbie, isn't it? Because it is all about the leak, and actually BP is doing all that it can to resolve this problem now. So it is doing the best job, right?
VORHAUS: Well, you know, you make a very interesting point, Max. BP may be doing all that they can. The question is, is it enough, number one. Number two, should they be bringing in outside people, outside countries, outside experts, and promoting that, showing that it isn't just this big company doing it on their own. And I think that is one of the problems. That is one of the mistakes that they've made, is that they have tried to make it appear that they are doing it all on their own and when you are doing that, and you are not succeeding, it really reflects on the entire company and, in some cases, the industry.
FOSTER: Robbie, you refer to a dead man walking. Is the best thing, in terms of PR, for him to go now?
VORHAUS: Absolutely. Tony Hayward needs to step away, he needs to step aside. He's going to do well financially, but BP-you know, people keep asking, whether or not this is, in regards to an English, or a British matter, or a British company? Or is it because Tony Hayward has a British accent? That is ridiculous. The point is, is that they've handled it poorly and if there was a Dutch, a British, a South African leader, who came in and showed compassion, communicated from the heart, and demonstrated that he had his finger on the pulse of what was happening, and he was going to take-he or she-was going to take full responsibility, no one would care where they are from.
FOSTER: OK, Robbie. Thank you so much for joining us with that. Fascinating stuff, we'll be back with you, I'm sure, before this is story is over.
Now, BP needs to do more to help the people in the Gulf. That is the message from the man who is overseeing a $20 billion fund established by BP for victims of the crisis. Thousands of barrels of oil are still pouring into the sea everyday.
Kenneth Feinberg was handpicked by President Obama for the job. He says the claims process needs to be speeded up.
(BEGIN VIDEO CLIP)
KENNETH FEINBERG, INDEPENDENT CLAIMS FACILITY: Got to get them out with more transparency so that claimants understand what the status is of their claim. And we've got to ease the burden on these folks in the Gulf. I was there last week. I'll be there tomorrow. We've got to accelerate the process, just as the president instructed me to do.
(END VIDEO CLIP)
FOSTER: We have a CNN exclusive for you, coming up, the economic boom in Dubai threatened to come unstuck last year, as one of the biggest companies ran into financial trouble. We'll hear about that and the effort to keep growth on track. Dubai's ruler speaks to CNN after the break.
FOSTER: The Gulf Investment Corporation announced on Monday it had fully paid back $500 million in debt. The financial firm, which is part owned by the United Arab Emirates, wanted to highlight the fact that it is not at any risk of letting down its lenders.
In the last six months some companies in the UAE have admitted to being financially overstretched. Dubai World being the prime example, asking creditors to accept delayed loan repayments on their loans. In a CNN exclusive for "MARKETPLACE MIDDLE EAST", John Defterios spoke to Sheik Mohammed Bin Rashid Al Maktoum, he's the ruler of Dubai and the prime minister of the UAE, and he began by asking how the emirate carved out its niche.
SH. MOHAMMED BIN RASHID AL MAKTOUM, PRIME MINISTER, UAE: You have to create a space for yourself and what you have to do, people have a vision, and some would be running only on his small vision and small safety zone. We have vision to be number one. So our airlines, our horses, or whatever it is. If you do it well, and you have your vision that you an establish it.
JOHN DEFTERIOS, CNN ANCHOR, MARKETPLACE MIDDLE EAST: I was looking back two months after 9/11, you put a plane order in for $15 billion. And then six months after the restructuring started, during this banking crisis, you put a giant $11 billion order in for planes. You obviously are trying to mark your territory in the airline space, and be bold about it.
AL MAKTOUM: I think it is opportunities. You have to grab the opportunity and not loose opportunity for another opportunity. Therefore, I think, the Emirates realized, give an order after 11 September, because that was an opportunity. And now, because of the growth of the airport growth, and the passenger growth, and the tourist growth, I think that is why they ordered these more. I think we will have to order some more in the (UNINTELLIGIBLE).
DEFTERIOS: So, another large order in July, is what you are saying?
AL MAKTOUM: I think, I think they will have to, because the growth, the way I see the growth in Dubai airport, and UAE, it is very, very big.
DEFTERIOS: Listening to you, you don't seem to share any of the concerns, for example, that the International Monetary Fund has about a persisting recession in Dubai, and throughout the region?
AL MAKTOUM: Well, I think the recession is all over the world. And I don't call it a recession. I call it a challenge. Everyday was a challenge to us. A challenge to find the water, a challenge to find a meal, a challenge to-everyday is a challenge. Live will be boring if there is no challenge. Or, you call it a recession, or you call it whatever you call it. No, Dubai and UAE and the rest of the emirates are fine. You know? We know it is a recession, we know it is challenge, and we deal with it.
FOSTER: Sheik Mohammed Bin Rashid Al Maktoum speaking with CNN's John Defterios. You can see the whole of that interview on "MARKETPLACE MIDDLE EAST", on CNN this Friday, 2245 in Dubai, 2045 p.m. Central Europe.
Now, Hamburg is a strategic city. Now it also wants an iconic urban landscape. We'll show you how one of the world's great industrial ports is being transformed. "Future Cities" is next.
FOSTER: Hamburg is a city that is rebuilding and regenerating. In the process it is injecting fresh life into what had been a rundown part of town. Richard Quest has the story.
(BEGIN VIDEO CLIP)
RICHARD QUEST, CNN ANCHOR, QUEST MEANS BUSINESS (voice over): Hamburg, Europe's second most important industrial port. This gateway to the Northern Seas, is of great strategic and economic significance to Germany. Hamburg has all the signs of a vibrant, and affluent place.
On the other side of the river, things are a little different for the community of Wilhelmsburg. This is Europe's largest river island. It is officially a district of Hamburg, but it is not one you'll find in any brochure.
CHRISTIAN MAASS, MINISTRY OF URBAN DEVELOPMENT: It is quite awkward that we have such a huge green area, very close to the city center of Hamburg, but it is outside of people's minds. People have not been going there.
QUEST: Wilhelmsburg is home to some 55,000 people. It is a traditional settling place for immigrants. Multi-cultural, industrial, and yes, beset by social problems. Hamburg, though, is expanding and looking south, ready to embrace its unfashionable neighbor like never before.
MAASS: Well, for instance, my administration is moving to Wilhelmsburg, from here, from the city center, we are leaping across the river to show people there is something really happening, and go there, and be a part of it.
QUEST: Rediscovering Wilhelmsburg, is the focus of the International Building Exhibition, or IBA for short. Uli Hellweg is the chief executive of the project.
ULI HELLWEG, CEO, IBA HAMBURG: IBA is a special kind of exhibition, in Germany, that is dedicated to architectural and design culture in Germany. And there were eight, seven International Building Exhibitions before, since 1901. In our building exhibition the main topic is to deal with the "Future of the Metropolis".
QUEST: Despite its name, IBA is more than just an exhibition. It is a six-year commitment to constructing real change in Wilhelmsburg.
HELLWEG: The special feature of an IBA is to be a laboratory for urban development. To seek new ways to prepare the future of cities.
QUEST: IBA is backed by a state budget of 220 million euros. Another half a billion euros is expected to come from the private sector. Dozens of projects are already underway.
Housing is one of the key objectives. Sustainable, affordable, and even some, adapted to live on the water. Wasteland and canals will be landscaped, the motorway running through the island will be diverted away from the center. Already built and floating on the River Elbe, the IBA headquarters itself. It is able to rise and fall with the tide. It is self-sufficient in terms of energy, and it is carbon dioxide neutral. This is the showcase building for IBA's assault on climate change.
STEFAN SCHURIG, THE WORLD FUTURE COUNCIL: We cannot build our cities from scratch. We have to deal with the cities how they are. And they are a product of the fossil fuel-based age. So we have to transform them. And the IBA is exactly pointing out these questions.
The very important thing for each city is that they set themselves the target of how will they manage to provide 100 percent renewable energy in the future and how long is it going to take?
QUEST: Powering a city, or even a district from a 100 percent renewable energy sources might seem like a Utopian dream. But that is exactly what IBA has in store for Wilhelmsburg. Predicting it could happen by 2050.
They have a very iconic project, which is the energy bunker. It is an old bunker from the Second World War, as there are many of them in Germany, in many German cities. And they just don't know what to do with it. And now this bunker is being converted into an energy bunker.
QUEST: Built to keep things out, this immense bunker will soon be transformed to keep the heat in.
We will empty this building and we will install a reservoir for 8,000 cubic meters of water, and this reservoir will feed about 3,000 apartments here, in the quarter, with warm water.
QUEST: Looking out from the rooftop, across the island, the eye moves easily from energy bunker to energy hill. This old landfill site will eventually supply energy to 2,000 homes. Wind turbines and solar panels above the ground. And underground geo thermal heat and methane from waste fermentation. Even the grass cuttings will be turned to bio energy.
In 2013, the Eighth International Building Exhibition in Germany will move on. The variety of experiments in the urban laboratory of Wilhelmsburg will be left to run their natural course.
HELLWEG: The task of the International Building Exhibition is to push a process to a point of no return. And if this point is reached, the normal administration, they can continue the process.
QUEST: Not all the IBA projects will please everyone. But it is a safe bet that Wilhelmsburg will never be the same again. There is a higher purpose for IBA's island of innovation. Our cities consumer up to 80 percent of the world's resources; we have to change and IBA is leading by example.
HELLWEG: We are absolutely sure that there will be an impact on other cities, on the business of development and urban planning. I'm absolutely sure about that.
FOSTER: Next week in "Future Cities" we stay in Hamburg for a look at mass transport with a green flavor. The city buses that run on hydrogen. That is in QUEST MEANS BUSINESS next Monday.
Now it is all about flexibility. China lifts the lid on its currency. We'll look at what Beijing stands to gain and why stock markets threw a global party.
FOSTER: Welcome back. I'm Max Foster in London. More QUEST MEANS BUSINESS in just a moment, but first let's check on the headlines this hour.
FOSTER: Off the bench, the big story in the financial world came out of Beijing. China says it will no longer maintain a fixed exchange rate between its yuan currency and the dollar. Some critics, especially in the U.S., argue Beijing has kept the yuan artificially low for nearly two years now to give Chinese exports unfair competitive advantage during the global downturn.
Today, the yuan rose by less than .5 of 1 percent. A stronger currency may boost the spending power of millions of Chinese consumers.
But what does Beijing stand to gain from the move and why now?
I asked our Asia business editor, Eunice Yoon.
EUNICE YOON, CNN CORRESPONDENT: Well, a lot of people are seeing this as a way for China to deflect international criticism and also a way for China to address its own economic problems.
Over the weekend, the Chinese said that they were going to make a change to their currency policy, that they were going to allow the currency to become more flexible. No details, really, on what that would mean, but a lot of the speculation is that we're going to see a return to the Chinese currency regime which they had put into place back in 2008, before the global financial crisis. And that is a managed float where the currency would trade in a very -- in a very narrow band against a basket of currencies.
Now, this sounds like a small step, but at the same time, a lot of people here are saying that it will at least help the Chinese to control inflation and also to boost consumer spending -- Max?
FOSTER: All right, what will be the impact, then, on international business?
Because they're all dealing with China right now, right?
YOON: Well, probably in the short-term, it's going to have very little impact. But the Chinese also have made it very clear that they want this to be a very gradual approach. They also said that the priority is still economic and financial stability. So nobody here thinks that we're going to see a dramatic move. In fact, a lot of people are guessing that it's going to be maybe 2 to 3 percent by the end of the year.
That said, the international community has come out and welcomed this decision. The White House said it was a constructive step. And many people believed that it was going to help address the global imbalances -- Max?
FOSTER: As you say, a lot of the reaction has been positive. But there are going to be those who are unhappy with this move. Take us through who they are and why they're worried.
YOON: Well, China always has its critics. And one of them is a long time critic, a U.S. congressman, Chuck Schumer. He is a Democrat from New York. And, look, for the past two years, the Chinese have had what is tantamount to a de facto peg against the U.S. dollar. And there have been many people who have complained that that has allowed the Chinese to compete unfairly in the global marketplace when it comes to their products.
So what Schumer has said is that he still wants China to do more. In fact, he intends to pursue legislation that could allow for trade sanctions to be slapped on the Chinese -- Max.
FOSTER: Eunice Yoon.
Now, Beijing's currency move is being watched no less keenly in the United States.
We go live now to the U.S. and Peter Morici, professor of international business at the University of Maryland.
He joins us from Washington.
Peter, today you called Beijing hypocritical and selfish. Harsh words.
PETER MORICI, PROFESSIONAL OF INTERNATIONAL BUSINESS, UNIVERSITY OF MARYLAND: Absolutely. In order to maintain an undervalued currency, it essentially prints yuan and buys dollars. This creates a lot of inflation at home. But it also makes the U.S. Economy artificially expensive in China. You -- we really can't export to China. And this is 40 or 50 percent.
A peg that grows at 2 or 3 percent, as it did, you know, in -- in 2004 to 2008, there was more like 4 to 5 percent a year -- really doesn't do much to help China with its inflation problem or much to help the United States with its trade problem. It doesn't do much at all.
You know, the underlying value of the currency rises 5 to 7 percent a year anyway, that is, the -- what its value should be, because productivity growth is higher in China as it modernizes.
So this is basically an attempt to get attention away from China for the G20 talks but not really fix anything.
FOSTER: But there'd be chaos if China or Beijing suddenly let go of all restrictions in its currency.
MORICI: Well, no, no, no, no. I don't agree with that. Look at the kind of currency revaluation we had during the Reagan years, after the Plaza Accord. The Japanese yen went up something like 30 or 40 percent. Exchange rate movements of that magnitude don't cause chaos if they're grounded in fundamentals.
You know, it's true it will make U.S. bonds that China holds worth less. But it will make the entire Chinese economy worth more. The typical Chinese worker will be wealthier and could, theoretically, buy U.S. products at a lower price and have a higher standard of living. Likewise, other things that China needs that we make would be less expensive and provide for them a higher standard of living.
What, really, we have here in China is a fear of the unknown, a fear of markets and a lack of understanding of the consequences of their currency policy. At the end of the day, if China doesn't relent and doesn't pull off this position, it will take the -- the global economy into a second recession. And from that one, we might not recover so easily.
FOSTER: The word relent, though, you know what Beijing is like. The last thing that they're going to do is be seen to be react -- reacting in any way to pressure from the U.S.
So I'm not sure...
FOSTER: -- point, but who are we to tell China -- Beijing, what to do with their economic policy?
It's up to them, isn't it?
MORICI: Well, one of the things to remember is that this is reciprocal. By setting the value of the yuan, they're also setting the value of the dollar. By determining that they're going to print a lot of yuan and buy a lot of dollars, not only do they create a lot of inflation in China, but they keep U.S. long interest rates arbitrarily low.
Remember, China invests those dollars in U.S. long bonds. That was one of the reasons that the Federal Reserve, during the last boom, raised the federal funds rate -- the short-term interest rate -- that if that went up, the long bond rate and mortgage rates didn't go up with it and the real estate boom happened.
So, you know, who is China to be determining our monetary policy?
In a world of economic interdependence, China can't have all the growth and all the flexibility for itself.
FOSTER: Is China making the Fed -- the Federal Reserve -- irrelevant?
MORICI: I think it is. Other than bailing out big banks in New York by running the printing press, when the Federal Reserve -- you know, it really isn't that relevant any more. There's not much the Fed can do to stimulate economic recovery by cutting interest rates that's gone to zero, because the huge trade deficit saps demand for U.S. good and services.
If the economy were to recover anyway, there's not much the Fed can do to slow it down, because as it raises the federal funds rate, China buying all those long securities in the U.S. bond market, keeps mortgage rates from rising. And that's where you get the real bite of Federal pol -- Reserve policy.
So my feeling is, yes -- and, by the way, that is what economic theory teaches and it's even in Ben Bernanke's textbook on macroeconomics -- if you fix exchange rates, you lose control of monetary policy. Go read Ben's book.
MORICI: Ben knows that, but he doesn't talk about it because he's not allowed to, because exchange rates is in the hands of Timothy Geithner, who, you know, his background in economics is not all that sophisticated.
FOSTER: All right.
Professor Morici, thank you very much for your outspoken words.
Good stuff, as ever.
There was a boost to shares in Europe after the weekend's news no the yuan there. It was the ninth successive day of gains, in fact, for some of these markets. All the major indices did well. Mining shares led the rally, with Oslo and Rio Tinto and Vedanta both jumping 6 percent.
The U.S. big board -- let's see what it's doing. U.S. stocks on the rise, really, as investors welcomed news that China is allowing that currency to -- to gain about it, at least, against the U.S. dollar. And as you can see, up .75 of 1 percent, roughly a move that could help U.S. exports and the world economy, the yuan -- whatever all the commentators have to say about all of this.
And it's the world's top tennis tournament, meanwhile. It started today. Even the sun smiled on Wimbledon's opening day, a rare thing here in the U.K.
CNN caught up with Venus Williams on the -- on the brink of her campaign for her sixth Wimbledon singles title.
And she's got some words to say about the business of tennis, too.
FOSTER: We're going to have a look here at the weather at this point.
This is crucial, the weather here in London, for the world of tennis.
Guillermo is going to tell us about Wimbledon.
GUILLERMO ARDUINO, CNN METEOROLOGIST: Yes.
FOSTER: It was sunny. We defied all of those doomsayers -- Guillermo.
ARDUINO: That's it. I mean, go back in time and think about Wimbledon.
Don't you think about rain, Max, when you think about Wimbledon?
FOSTER: And they invested all that money on the roof and they haven't used it yet.
ARDUINO: They are not going to need it this week and that's it. That's the paradox.
OK, I'm going to give you specifics. As you see, we have nothing in the way of precipitation here. Here and there, a couple of -- of spots with some rain showers and that's about it. But way to the north, look, England looking fine. Also, the Low Countries that are fine.
So we're going to fly into Wimbledon right now. Beautiful plays. And you see the next three days, no rain whatsoever, including today. Very comfortable conditions and some clouds moving in. I think that if we think about some rain, maybe after Wednesday, there is a little bit of a chance. But in general, we're going to be dealing with dry conditions. The problems, guys, are here to the east, especially into Italy, these areas, once again, the eastern parts of Europe, where we may see some severe storms.
Take a wide look at that -- the sound (ph) there. You see this, a low pressure center is spinning around here, moving into the Adriatic Sea and into the Balkan Peninsula. It is clearing whatever is happening in the west, but it's hot, especially hot in Spain. I'll show you that in a second.
Rome, of course, may see some rain showers. We do not anticipate any problems at airports, we think, maybe some windy conditions in Vienna, all associated with the same thing.
But 31 in Madrid. That's pretty warm. Now, Madrid is a dry city, so you don't feel it. Of course, it's a big city, you feel the overwhelming power of -- of the heat. But it's not as bad as, let's say, any city in the southern parts of Italy or in the coastal parts of France or in the southern parts of Spain for that matter, where it's much more humid.
So the high for London, 24, maybe. That's pretty good. If you're watching from Glasgow, thanks for watching CNN. Twenty-two degrees for tomorrow.
And the southern parts of Turkey looking nice. This is the area where we will see, in the next two days, unstable weather conditions.
I'm going to get serious, because we continue to see rain in China, though there is a time where it's going to dry out a little bit. But the general trend is for more rain, even clearing through Tuesday in Japan. But you see a lot of cloudiness here.
And we see a little bit of a break, especially in Guangdong, Fujiang (ph) and Juanggi (ph). But as we go to the -- to the islands here, we're going to continue to see rain showers here and there.
The heat continues to be very dangerous. And north of that area of hot conditions, we have the dangerous weather with tornadoes and destructive conditions in the Upper Midwest. Not -- this is the time of the year, if you're coming to the United States, come with a lot of patience. Try to avoid connections at airports, because summertime, lots of delays -- back to you.
OK, thanks very much, Guillermo.
ARDUINO: Thank you.
FOSTER: And as Guillermo was saying, the All England Tennis Championships, better known as Wimbledon, did get underway not far from here in London. The sun did come out. It can't always be relied upon, but it's looking pretty good for this week.
Now, with the amount of money at stake, it is a pretty serious business, as well. Back in 1970, the prize money for the men's championship was equivalent to $7,200 only. The winner of the ladies' singles got half that amount. Today, the prize money at stake is nearly $1.5 million and women do, at last, earn the same as men.
Venus Williams is one of the most successful players ever on the women's circuit. She's won the Wimbles singledon -- single's title five times, most recently, in 2008. Richard sat down with her earlier.
RICHARD QUEST, HOST, QUEST MEANS BUSINESS: When you realized that equal prize money was in the cards and even at Wimbledon the check was going to be written, was it a "yes!" moment?
VENUS WILLIAMS: I guess it was a kind of a moment where you know that you're -- you're fighting for something, but at the same time, when it actually happens it is a moment of disbelief and, of course, great excitement. We've been have -- we had those meetings as far as we could remember in the open air and, you know, every year, going to the Grand Slam Committee and every year kind of coming back with the -- the kind of reject stamp since the '70s.
So to actually have it happen is -- is amazing.
Now, let's turn to this business and the business interests, because one of the things you have been so keen on is to develop your own brand beyond the tennis. The tennis and the business obviously feed other at the moment, don't they?
WILLIAMS: Yes. I mean in this day and age, when -- when it's -- it is about the sports and day in, day out, I'm going for the -- to hold the cup. And every time when I play, it also is a business. And I just see myself, after tennis, doing the things that I love off of the court and making a business out of it. So I'm using that platform as we speak.
QUEST: And we'll talk about the post-tennis in just one second.
But I want to know, what happened to -- to Venus Williams when you got that first seriously large check in winnings and you looked at the number of zeros and you thought ooh, that's -- that's a lot of money.
WILLIAMS: Yes. Well, I'm sure at the time I was living at my parents' house and, you know, shopping at the teeny bop stores. I think my biggest purchase was like a Forerunner, a Toyota Forerunner. So I wasn't living large and still, I'm, hopefully, pretty grounded right now.
QUEST: What have you determined are the areas of business that you will go into, that you -- those areas that you will develop?
WILLIAMS: Most definitely, I mean my -- my main business is tennis on the court, holding those trophies. I can't ever forget that. But in fashion design and I have a line called EleVen. And I have a company called V Starr Interiors. So my goal is to definitely do commercial design and also to have my own line of -- of child wear and -- and enjoy myself and the things that I love, just like I do now.
QUEST: So you're not going to suddenly find, do you think, one day you'll wake up and think ooh, that bit's over, what do I do now?
You -- it -- the plan is in place.
WILLIAMS: Well, I was raised to think about my life after tennis and the -- which is different than most athletes. And so my parents have been a huge influence of letting us know who we are off the court and to pursue that and to -- and to go for it now.
QUEST: Do you ever get overawed by the sums of money that are now bandied about when your name is mentioned?
WILLIAMS: I get overawed by the sums of taxes that have to be paid. But other than that, you know, I -- I like to think that I started working a little bit earlier than the next person, around four years old, and putting in the hours. So I've got 25 years in in my career already. So most people don't start until they're about 20.
QUEST: Let's talk briefly -- I have been asked about -- well, your book, what was the driving force of that?
WILLIAMS: Well, I think that with sport, it's something that everyone relates to. You know, with the World Cup going on right now and the major events where people find a connection with sports and people in life. And I think everyone -- most people have had some experience in sport and just kind of taking those lessons that you've learned in sports and applying it of your life.
And in book, you find that all these people who are great and visionaries and leaders in what they do and how much sport has been a huge part of what they've done off of their field and -- and how amazing that it's been and how we all can apply that in our lives.
QUEST: Are they destined to fail because they haven't done it?
WILLIAMS: It's never too late to get involved in sports, so -- I would recommend tennis, but I'm biased.
(END VIDEO TAPE)
FOSTER: Venus Williams speaking to Richard earlier, as Wimbledon begins.
World Cup is in play, of course. We just heard that Spain have scored a goal against Honduras, the score being (INAUDIBLE) 1-0 so far to Spain in the first 18 minutes of that match.
Football fans in Portugal are a happy lot tonight. They seemed to have produced one of the performances of this or any World Cup earlier today.
But how well is Portugal faring off the bench?
See who's on the top in the Economic World Cup in just a moment.
Jim will join us.
FOSTER: In a moment, the Economic World Cup.
But first, a reminder of today's scores. In the last few minutes, Spain got a goal against Honduras. David Villa the goal scorer. Earlier, Chile beat Switzerland 1-0. Valon Behrami of Switzerland was sent off for a clash with Chile's Arturo Vidal. The early goal came by a header by Mark Gonzalez 15 minutes from the end. Chile go to the top of Group H now. Their last game in the group will be against Spain on Friday. And in the best gold story (ph) display of the tournament, probably, Portugal thrashed North Korea 7-0, hitting six goals in the second half. Portugal has a history of upsetting North Korea. In one of the most celebrated games in the World Cup history -- the -- the quarter final, 44 years ago, Portugal came back from 3-0 down to beat the North Koreans 4-3, if you remember.
So how do they match up economically speaking?
Jim joins me now.
We watched that Portugal match in the office, didn't we?
JIM BOULDEN, CNN CORRESPONDENT: Yes.
FOSTER: That was extraordinary.
Where are we starting off?
BOULDEN: I think this is an interesting one, because you just said Chile and Spain have to play each other. So that's going to be a fantastic match on Friday. But economically, I'm going to go with Chile and I'll tell you why. They had the earthquake rebounding strongly. OK, they're cutting the growth, but a lot of growth. They're getting a lot of people - - a lot of purchasing going on right now because of the reconstruction after the earthquake, no doubt.
They joined the OECD. They've got low inflation. They've had to raise interest rates. And I'll tell you why I think that's interesting.
When a country in this era, right now, is raising interest rates, there's something good going on in the economy, because they're worried about it overheating. So they say it's not about inflation short-term, it's medium term.
Well, OK, Switzerland is a much bigger economy; some growth this year. But if you were to look at it right now, I would give it to Chile. And, of course, we have the convenience of knowing what the score was.
FOSTER: So you're talking about steady growth in Switzerland. But coming from a low base, Chile is looking good.
BOULDEN: Yes. And recovering quite quickly, not as quickly as we thought because of the earthquake, but recovering quite quickly.
FOSTER: OK. OK, let's talk about that other match then, because (INAUDIBLE)...
BOULDEN: That's right.
FOSTER: Portugal having a tie -- time of it...
FOSTER: -- apart from football, though, so...
BOULDEN: Yes. Plus everyone has to see that, don't they?
BOULDEN: I mean that was extraordinary.
FOSTER: But that was good football, as well, right?
FOSTER: You liked the football?
BOULDEN: Well, let me play devil's advocate here.
BOULDEN: You know, sometimes we say we don't have enough information about the North Korean economy. Obviously, very different from the rest of the world. However, growth last year, growth this year -- decent growth this year, from what we know, when you look at the "CIA Fact Book" and other places.
So -- so North Korea actually showing that they didn't suffer from the recession. Maybe that's not a surprise. Portugal -- budget deficits, austerity packages, the euro, worries -- maybe not rational, but worries about the banking system and all that.
So right now, you can...
FOSTER: -- North Korea.
BOULDEN: No, but I'm going to say it probably shouldn't have been 7- 0.
BOULDEN: If you looked at the economies.
FOSTER: So in terms of the economy, what scores have we got there, do you reckon?
BOULDEN: -- Portugal, of course, well over North Korea.
FOSTER: OK. And apart from that, in terms of how things are lining up, what are you looking at right now?
BOULDEN: Well, one of the interesting things one of our colleagues just pointed out, that if you look at all the countries that have announced austerity packages, they're not doing very well in the World Cup. So that may not be very good for England come Wednesday.
FOSTER: Yes, we'll be talking something about that, too.
It's actually a draw with America, but he seems to think that it was a massive loss on England's part.
Let's see how you are managing to keep up with all of the World Cup action whilst at work.
Send us your pictures and stories of your World Cup at work. Find us on Facebook or e-mail firstname.lastname@example.org or Twitter atrichardquest.
All right, let's have a look at the big board and find out how those stocks are doing. New York stocks on the rise, as we were saying earlier, as news that China is allowing its currency to gain against the U.S. dollar. If we actually take a look at the big board, it was up marginally and it's come down a bit, but it's still up 1/3 of 1 percent. So still up.
But do stay right here.
After the break, we'll get a check of the market numbers in Europe and Asia, and we'll have another look at the U.S., as well.
FOSTER: The European stock markets ended the day with pretty healthy gains altogether. The CAC 40 in Paris had the ninth successive winning session, in fact. That is one of the best sustained rallies of the year.
The FTSE 100 in London and the DAX in Frankfurt also higher on the close, as you can see. A healthy day in Europe. The U.N. was the main talking point on the Asian stock exchanges, as well, giving markets across the region a lift. Shares in Hong Kong, the top performance -- the top performers. The Hang Seng closed up more than 3 percent higher.
Mainland Chinese companies led the rally, naturally. And investors are hoping a stronger currency will make Chinese shipments more attractive. The Composite Index in Shanghai ended close to 3 percent higher and across the region, shares rose on hopes that more -- of a more open Chinese economy and possibly greater demand in China for foreign goods.
Let's have a look at the big board. Also the main talking points on Wall Street being the yuan. And it is up 2/3 of 1 percent again. A bit of a seesaw going on in the last hour or so. But up there at 10515 points.
A recap of our top story on CNN, BB -- BP's CEO, Tony Hayward, has been coming under harsh criticism yet again, this time for attending a glitzy yacht race here in England. A BP spokesperson explained that Hayward was spending time -- or some time with his son, after two months away from his family. The White House called it another public relations gaffe.
(BEGIN VIDEO CLIP)
RAHM EMANUEL, WHITE HOUSE CHIEF OF STAFF: This is just another P.R. mistake in a long line of P.R. mistakes. What I think you've got to really measure is what are we doing to deal with this problem?
What is BP being forced to do to deal with this problem, both containing the well, giving -- getting the $20 billion into the escrow account?
That's the measure here. This will be fodder, as you would obviously ask this question. People will chew over this. But don't take your eye off the major and the major priorities and the key goals here, which is dealing with the problems down in the well and dealing with the problems in the region, as it makes it as important to the people getting the resources they need to restore their lives and restoring that coastline to its environmental purity that it had at one point.
(END VIDEO CLIP)
FOSTER: And that's how we close QUEST MEANS BUSINESS.
I'm Max Foster in for Richard Quest.
"WORLD ONE" starts right now.