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QUEST MEANS BUSINESS

Is FIFA Facing Crisis?; German Nuclear Power Industry Worried

Aired May 30, 2011 - 14:00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


RICHARD QUEST, HOST: Tonight, FIFA's president. Is he in a state of denial over the state of international football?

(BEGIN VIDEO CLIP)

BLATTER: We are not in a crisis. We are only in some difficulties.

(END VIDEO CLIP)

QUEST: Powering down. Angela Merkel goes cold on nuclear energy.

And a spirit and change. Pernod Ricard's chief executive tells me Asia is booming.

The start of a new week. I'm Richard Quest, I mean business.

Good evening. We've just seen an extraordinary press conference held by the president of FIFA. Sepp Blatter denies FIFA's in a crisis. He says the ongoing corruption allegations can be dealt with internally and that the leadership election will go ahead on Wednesday as planned.

Two top FIFA executives remain suspended after corruption allegations. The federation's incumbent president looks set to be reelected unopposed in Wednesday's leadership vote.

Still, at a combative news conference in Zurich a moment or two ago, Sepp Blatter denied the football's governing body is in crisis.

(BEGIN VIDEO CLIP)

BLATTER: Crisis?

UNIDENTIFIED MALE: Yes.

BLATTER: What is a crisis? If somebody of you would describe to me what there is a crisis, then I would answer. Football is not in a crisis.

When you have seen the match, the final match of the Champions League, then you must applaud and you see what the game is, what is fair play on the game, what is good control of the game.

We are not in a crisis. We are only in some difficulties, and these difficulties will be solved. They'll be solved inside our family.

(END VIDEO CLIP)

QUEST: These are the stories and the players in this incident. Sepp Blatter has been FIFA's president for the past 13 years. The organization's ethics committee cleared him of corruption allegations on Sunday, and Blatter's now running unopposed in Wednesday's leadership vote.

The executive committee member Mohamed bin Hammam was suspended on Sunday. He's hoping to reverse the ban in time to challenge Blatter. The Qatari's presidential pitch was based on bolstering football's image through honesty, transparency, and accountability.

FIFA's vice president, Jack Warner, the other executive who was suspended. And he made public an e-mail written by this man, General Secretary Jerome Valcke.

The e-mail said Qatar bought the 2022 World Cup. Valcke says he wasn't implying corruption, just referring to the fact that Qatar used its financial strength to lobby for support.

CNN's Pedro Pinto is live in Zurich, the home of FIFA's headquarters. Pedro, we have a lot of ground to cover. All right. Was it just me -- and let's be blunt about this -- or it seems Sepp Blatter had lost touch with reality in the way he handled some of those questions?

PEDRO PINTO, CNN SPORTS CORRESPONDENT: I complete agree with you, Richard. It was the most surreal press conference that I have ever witnessed. I think everybody was thinking, there's an elephant in the room, when is he going to talk about it?

The fact that he refused to admit there was a crisis in the world of football, the fact his overall demeanor was actually quite joking in the way that he addressed some of the issues, really surprised me. It shocked me, and it did the same to the rest of my colleagues who were in attendance.

I have to tell you, Richard, we were only supposed to come out here, probably, on Tuesday morning to cover the run-up to the elections. We were sent today because we heard there was going to be an emergency meeting, and there was going to be a press conference.

So we thought, perhaps, that Sepp Blatter would say the elections will have to be postponed. We were thinking, perhaps, that he would come up with some solutions for the problems that we have seen develop over the next days.

Everyone, I think, felt furious, felt angry, frustrated, irate, at the kind of answers that he came up with in the press conference, because he started talking about things that had nothing to do with the overall crisis hanging over football at the moment.

The statues of the Bosnia-Herzegovina federation. The Champions League. The next club World Cup. Everybody was looking around and thinking, is he joking?

And the end of the press conference was even more surreal, because people were just shouting questions, refusing to allow the press conference to end --

QUEST: All right.

PINTO: -- and I just wanted to get in a guest -- sorry, Richard, I'll let you a question in a minute, I just --

QUEST: Sure, of course. Please do, go ahead.

PINTO: -- wanted to get in a guest here who is a man who would not -- who would not take the end of this press conference, kept on shouting and demanding respect. From German television, it's Florian Bauer. Florian, why were you so incensed, and why would you not let this press conference end?

FLORIAN BAUER, ARD TELEVISION: In general, what is a press conference about? It's a conference for the press. It's for us journalists to ask questions. It's not for anybody, a president or a dictator or whatever, to tell us what questions are allowed and which are not.

And in this term, I just wanted to ask my questions. I was raising my hand since the first second of the whole press conference, like 20 others, until the end. And I wasn't allowed to ask any questions at all.

PINTO: I was like that, as well. I wanted to get my question out there. I was frustrated. What is your overall reaction to what happened here today, and do you think Sepp Blatter knows the gravity of the problem?

BAUER: I think in general this just showed what we've already experienced over the last couple of years, even a decade, that FIFA in general is an organization without any truth, really. Without any real -- with a lack of understanding.

And I think there's a major problem in there, and I think the whole world, really, has lost any belief in this organization in general.

PINTO: Florian, thank you so much for your time. And Richard, I'm all yours, now. I just wanted to say that this is the overall view of media wherever they come from, whether it be from Africa, South America, Europe, Asia. Everyone here is just incredulous at the tone of the press conference today here at FIFA House.

QUEST: The thing that struck me with what he said. It's when people were asking multiple questions within questions, and he said, "Choose your question. Choose your question." Anybody who is in such a precarious position as he is in, you would have thought would have said, "I'll answer all questions." So, what doesn't he get about this?

PINTO: Exact -- exactly. I think that he wanted to give the impression that it was his show. He's running it, and people just have to accommodate whatever the rules are. We're in his house, FIFA House, we're in his town, and we have to respect that.

Now, I was disappointed with the overall tone of the press conference. Obviously, as journalists, and I'm sure Florian would agree with me, that he didn't want to have this kind of posture. He didn't want to get upset, he didn't want to get angry.

QUEST: All right.

PINTO: But when you feel that your questions are not being answered and that someone is refusing to see the gravity of the situation, you do react.

QUEST: OK. Now, that -- this begs the question. In capitals around the world, football associations will be -- will have watched this, as well. And they will be sending their instructions to their delegates for the congress.

Now, no matter how corrupt there may or may not be elements, surely, Pedro, there'll be -- there will be delegates tonight saying, after what we've seen, we cannot be part of business as usual.

PINTO: Well, I'm sure there'll be some. I don't know if there'll be many or most, Richard. You have to consider the fact that Sepp Blatter's the most powerful man in football, and he's been, as you mentioned, in front of this organization for 13 years, now, and he could have an influence on the vote and people could be -- the could be, I wouldn't say scared, but they could be wary of upsetting him.

Now, I would like to remind our audience that the election can still be postponed, but three quarters of the general assembly at the congress on Wednesday --

QUEST: All right.

PINTO: -- need to vote for that to happen, and that -- I don't know if they'll ever get that number, I'll be honest with you, Richard. It's a very high number. If we're talking about 51 percent, maybe. Three quarters? I don't know.

QUEST: So, to mix my sporting events grandly, much to your horror, Pedro, is this game, set, and match to Blatter?

PINTO: Well, I don't think it is, and that's the wrong sport, Richard, you're talking about tennis.

(LAUGHTER)

PINTO: No, I don't think it is. I really believe that he will go to the congress on Wednesday, he will stand for election, and odds are, he will stay for another four years.

The issue is that I don't know how many people around the world will respect his next term, taking into account that, at the moment, there are so many allegations of corruption floating around, there are suspensions, there are various issues that need to be resolved.

I think what people just wanted was for him to say, "I know I can't make this call myself, but I advise the general assembly to vote to postpone this election for the good of the game, to clean the image of the game, so then when the election happens, it will be more respected around the world."

QUEST: Pedro, we are really pleased to have you in Zurich for us tonight to talk about this. Many thanks, indeed. Pedro Pinto, who is well across the event.

Now, on the business side of events, FIFA has six major sponsorship partners. You see their logos behind you. I suspect largely upon what they say and how they react will depend, of course, what ultimately happens.

Coca-Cola says the allegations are "distressing and bad for the sport." A company spokesman told us, "We have every expectation that FIFA will resolve the situation in an expedient and thorough manner." That's Coca-Cola.

Adidas says it enjoys a "long-term, close, and successful partnership with FIFA, and we're looking forward to continuing that." Adidas will be the sponsor of FIFA World Cup 2014 in Brazil. And then says, "Having said that, the negative tenor of the public debate around FIFA at the moment is neither good for FIFA and its partners nor for football."

Emirates, the airline, said "Emirates remains committed to the FIFA sponsorship and the enjoyment that it brings to billions around the world."

As for Hyundai, Kia, Sony, and Visa, it was either too late in the day with Asia or they had their head in the sand and have not responded yet to the allegations.

Not surprisingly, it has been a quiet day on the stock markets in Europe. London is closed for the spring bank holiday. New York is closed for Memorial Day. For the other markets, very little change, and that change that has taken place, of course, can be pretty much written off as small market.

Except in Germany, where utility companies took a knock from the news that the country would go nuclear free by 2022. Funny, that's the date of the World Cup. EON was down by more than two percent. We'll have more on that in the program.

Banking stocks were under pressure. Credit Agricole in France up by 1.5 percent, SocGen down three-quarters of a percent.

European leaders are stuck in an all-too-familiar area. They're trying to thrash out the details of a second bailout trance to be paid to Greece. Its strict new austerity measures are being negotiated with the first $157 billion bailout failing to stave off the threat of default.

As part of the terms for a second rescue package, the EU may now get more involved in the fire sale of Greek assets. The chair of the euro group finance ministers, Jean-Claude Juncker, admitted total restructuring is not an option, a view he's held for some time.

The second country to receive an EU bailout denied it was heading for a second. Ireland's finance minister, Michael Noonan, said the money his country had been given by the EU and IMF would see them through.

Big switch-off in Germany. The country could be nuclear free by 2022. Our guest calls the decision pure politics in a moment.

(COMMERCIAL BREAK)

QUEST: Tonight, turning off the lights on Germany's nuclear power industry. The industry is worried. If you join me over in the library, you will see what I mean about why they are concerned.

It starts off with the U-turn by the Merkel administration. Having said that they were going to continue in some shape or form, now Angela Merkel, through -- with her energy minister, says that they will shut off nuclear reactors by 2022. In many cases, that means not recommissioning or not bringing back into service some reactors.

But by and large, no nuclear power in Germany by 2022, largely, of course, on the back of the Fukushima disaster in Japan.

This is interesting because Merkel had been talking about expanding the role, or extending the role of those reactors. Now, they are to be fully mothballed.

The phase-out could, of course, face opposition from the utility companies. Berlin immediately closing eight of Germany's older reactors, 22 percent. That's quite a lot, if you have to make it up with a bit of wind and solar, 22 percent of Germany's power does come from nuclear energy.

Now, the plan is to cut electricity usage by 10 percent over the next 9, 10 years. That would also slash greenhouse gas emissions by 40 percent over the next 9 years.

But even so, you're going to have to go a long way to get that number down. If you cut out completely nuclear power, 20-odd percent.

To put this in perspective, Germany's move is making the nuclear power industry nervous. And I was joined on the line via Skype by the European Atomic Forum's Christian Taillebois. The Forum is the Brussels-based trade organization, it represents all the nuclear power industries. And obviously, the response of Germany going non-nuclear wasn't exactly good for his industry.

(BEGIN VIDEOTAPE)

CHRISTIAN TAILLEBOIS, EUROPEAN ATOMIC FORUM: Well, it's true that it's bad news, but what we note, here, in Forum Atomique, that the decision is based not on technical assessments but on the -- on pure politics.

Nuclear plants in Europe and in Germany are safe, so it's created under the pressure of politicians and public opinion that the decision has been made.

QUEST: But there -- obviously, following on from Japan, and there is a groundswell of feeling against nuclear power at the moment, you have to, surely, respect the German politicians' decision in that and the wishes of the people.

TAILLEBOIS: Well, we fully respect the decision of politicians. But what I just wanted to say is that there are many members states that have decided to go ahead with their nuclear plans, so Germany is quite isolated in this position, in this situation.

For instance, in the UK, in France, in Poland, in Slovakia, in Hungary, Czech Republic, and so on, many, many member states decided to go ahead with their nuclear plans. We respect every decision, for sure, but we just have the feeling that now there is more questions than answers regarding energy in Germany.

QUEST: Right, but the danger for you and your organization is that Germany becomes a bandwagon, doesn't it? And that other governments and other popular uprisings, if you like, say, "Well, if Germany can stop nuclear power, we should, too."

TAILLEBOIS: We don't fear the kind of domino effect because, as I told you, many member states already have decided to go ahead with their nuclear program, long-term operation of the existing plant or a new breed in Europe.

But, no, it's true that it's a very important country in Europe, so everybody is looking at what is going on in Germany. But maybe this decision, which still needs to be ratified by the parliament and for the federal program, correct?

Maybe Germany will diverse its decision in a few years, because in the past, there were in favor of -- Angela Merkel was -- were in favor of nuclear power. Now, she decided to head out. So, who knows?

(END VIDEOTAPE)

QUEST: The question of nuclear power. Now, coming up, the port that offers the gateway to China.

(BEGIN VIDEO CLIP)

QUEST: The products from the port to the shop. Future Cities in Tianjin after the break.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

QUEST: The Chinese yuan hit a record high against the US dollar on Monday, and that could be bad news for the country's exporters, especially in places like Tianjin, 170 kilometers southeast of Beijing, it's the gateway to China's capital. And this is where Chinese exports go in and out. Its port connects with more than 500 other destinations.

Now, despite being one of China's biggest ports, it's still not big enough, and the port authority wants to expand it even further. And that creates not only environmental issues, but it creates questions of how you manage that sort of growth.

Not surprisingly, then, it's the perfect place for us to be, in Tianjin, of Future Cities.

(BEGIN VIDEOTAPE)

QUEST (voice-over): A city with a port has much going for it. Money. Trade. People are drawn to the area.

The industrial hub of Tianjin in northern China is no different.

OU YONGLIN, SPOKESMAN, TIANJIN PORT (through translator): Tianjin Port is the biggest artificial and deporter port in the world. It covers an area of 107 square kilometers. Last year, our cargo volume reached more than 400 million tons, which ranks us fifth in the world and third in China.

QUEST (on camera): Tianjin is making the most of its resources, whether it's the natural river Haihe or, 50 kilometers up stream, the largest manmade port in China.

QUEST (voice-over): This landscape has been carved out of the coastline by human hands. The border of Tianjin may be huge, but it's serving a sizable area with large cities, like Tianjin itself. In fact, the relationship between city and port is crucial, because the port is Tianjin's gateway to the world.

Millions of tons of coal, cars, steel, and more, distributed to the rest of China through this gateway to the Bohai Sea.

Tianjin is just 150 kilometers from the capital Beijing. Its strategic position is crucial.

OU (through translator): Ninety percent of Chinese imports and exports are shipped by sea, so Tianjin port has an irreplaceable role in international trade and economy for inland China, especially in the north.

QUEST: The ebb and flow of these goods is a massive operation. Each moth, more than 400 ships set sail from here to more than 500 ports around the globe.

OU (through translator): We have transactions with almost everywhere in the world. Our goods travel to Japan, Korea, southeast Asia, mot European countries, America, Brazil, and Australia.

QUEST: The transfer of goods is seamless. A ship this size is docked for just 24 hours, the time it takes to unload, reload, and leave.

Every ship is playing its part in a complex economic operation.

OU (through translator): According to our research, every 10,000 tons cargo from or to Tianjin Port increases local GDP by nearly $200,000, and also creates jobs for Tianjin.

QUEST: Because the benefits from the port are many, expansion is well underway. The port authority is building new berths and upgrading facilities. It now needs more land.

XUE SHUIHAI, CONSTRUCTION DEPARTMENT, TIANJIN PORT (through translator): Since the 1950s, Tianjin Port has used silt to make land. So far, we have dug out over 800,000 cubic meters of silt and made over 70 square kilometers of land.

When we drove here from the port, the land we were crossing was made from silt.

QUEST: The silt is sucked up from the sea bed, thrust onto the ground. It forms reclaim land, which after settling, is ready for development.

XUE (through translator): We have to clear the waterways for Cargo ships and deepen them to make way for big boats. Also, considering our demand for expansion, we use the silt to make new land.

QUEST: Port expansion means more ships. More ships means more bunker emissions. Carbon dioxide from the fuel.

QUEST (on camera): China has set itself ambitious targets for reducing emissions. A cut of 40 to 45 percent in just 15 years.

So far so good, except, with the increasing growth and the large numbers of ships arriving, it's a target that's going to be very difficult to meet.

QUEST (voice-over): Tianjin Port Authority is vague when asked specifically about the environment impacts of expansion.

OU (through translator): Our mission is to build an ecological port, so when we're developing the infrastructure of Tianjin Port and upgrading our facilities, we also place emphasis on environmental protection and improving the air quality.

QUEST: Cleaner air would be welcomed by all. As urbanization brings more people to Chinese cities, the supply and demand at Tianjin Port won't slow down.

Making Tianjin port an even more valuable picture on the skyline of this cit.

(END VIDEOTAPE)

QUESET: The delights of Tianjin and future cities.

Now, get yourself a slice of lemon and some ice cubes. And if you're very lucky, we'll pour you a drink. We've got the chief exec of the drinks maker Pernod Ricard on the global recovery. What's got them in high spirits.

(COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest, QUEST MEANS BUSINESS.

This is CNN. And on this network, the news always comes first.

"We are not in a crisis" -- those are the words of the president of football's governing body, FIFA. Sepp Blatter held a news conference as aligns of corruption engulfed the organization. He dismissed questions about some governments wanting FIFA to postpone Wednesday's presidential election.

(BEGIN VIDEO CLIP)

SEPP BLATTER, FIFA PRESIDENT: So, listen, if the government decides to intervene in FIFA's organization, then something is wrong. I think that FIFA is strong enough that we can deal with our problems inside the FIFA. And I am sure the day after tomorrow, the congress will show this unity, will show the solidarity and we'll solve the problems which will be, if there are any, in the congress.

(END VIDEO CLIP)

QUEST: Libyan officials say their embattled Libyan leader, Moammar Gadhafi, has met the South African president, Jacob Zuma. The South African leader is expected to push for a cease-fire between Gadhafi loyalists and rebel fighters. The visit comes as eight Libyan gens have defected to Italy.

Germany is moving to close all of its nuclear power plants by the year 2022. The move was prompted by the nuclear crisis in Japan, after the earthquake and tsunami. It could still face legal challenges from energy companies. Nuclear opponents are threatening to protest because they want the plants phased out faster.

An E coli outbreak linked to raw vegetables has killed at least six people and sickened hundreds more in Germany. Spanish officials say two companies producing cucumbers may be involved in the outbreak.

Russia is suspending all imports of vegetables from Germany and Spain.

The chief executive of Pernod Ricard says U.S. sales are back on track. Pierre Pringuet is the man in charge of the French drinks group. And, as you can see, Absolut there, which companies snapped up for a cool $8 billion in 2008, along with the many other brands that are, of course, in the stable.

Mr. Pringuet told me that although global sales are on the up, well, not surprisingly, bearing in mind the sovereign debt crisis, Southern Europe is still cause for concern.

(BEGIN VIDEO TAPE)

PIERRE PRINGUET, CEO, PERNOD RICARD: I can say that, yes, across the board, our strategy brand performed well. And I would mention, certainly, Jameson or Absolut. The main difference is made between the geography and that were the differences kind of bear.

QUEST: In what sense?

Which parts of the world are you most concerned about at the moment?

PRINGUET: Well, I would say that definitely Southern Europe, with countries like Spain or Greece are certainly suffering. On the other hand, I'm particularly pleased at the performance of the U.S. market, which is definitely on the recovery and that America is growing double digit.

QUEST: And it -- that sort of Southern European problem, it's classic, isn't it, because there's nothing you can do about it short of cutting your prices and reducing your margins?

PRINGUET: Well, we never reduce our margin. And, by the way, we have steadily increased our margin. But, you know, on the other hand, I should also mention that we have all the emerging markets in Eastern Europe, which are performing extremely well. I would mention, certainly, Russia, Ukraine and not to forget about Poland. And going a little bit further to the east, then Asia is definitely booming.

And the -- these are extremely profitable countries.

QUEST: Do you think the consolidation in your industry has now played itself out for the time being?

PRINGUET: Well, you know, I think we have been quite an active participant to that consolidation, with the three major accusations of which we made operation decade. And all in all, it repeated a 20 billion euro investment from our side.

What will happen in the future?

I don't know. It will depend on opportunities. But today, I don't think anything is necessary for us.

QUEST: Right. I may not be necessary, but is -- do you still have the acquiring eye?

Are you looking for the desirable property?

PRINGUET: Today, our policy is to continue to deleverage the group. And we indicated a target that is to reduce our debt to a fourth of EBITDA by June, 2012. This is, today, the unique objective.

QUEST: And, finally, sir, if you were to -- to -- to look out 12 months hence, when you and I, hopefully, are talking, what do you think the story of the next 12 months will be for your company?

PRINGUET: I think it will be continuous growth, possibly, and acceleration of the growth and certainly continuing our policy, which is in favor or premium brands. We call that the premiumization. And, you know, such a brand like Absolut, Jensen, Martell, Chivas, are all performing extremely well.

QUEST: And they -- they only really perform as well as the recovery takes hold, though, don't they?

That's an economic reality.

PRINGUET: Exactly. I mean we have been betting on the economic recovery for this fiscal year. And for me, the next fiscal year should be the continuation of this.

(END VIDEO TAPE)

QUEST: The chief executive of.

Now, Microsoft could be about to launch a new version of Windows for tablets this week. The company is rumored to be to reveal the plans at a trade show that will take place in Taipei and in California. Last week, Microsoft unveiled its new Smartphone operating system, code-named Mango. With Android and iPhone users already complaining that their handsets are storing too much personal data, I asked Microsoft's head of mobile communications if his company, when it comes to storing data, was going to do the same.

(BEGIN VIDEOTAPE)

ANDY REES, PRESIDENT, MICROSOFT MOBILE COMMUNICATIONS: We don't capture information about individuals. We just make sure that they can get done what they need to be able to get done...

QUEST: All right...

REES: -- without doing that.

QUEST: All right...

REES: So we do a very good...

QUEST: All right, I'm going to...

REES: -- battle on policy...

QUEST: Hang on, hang on. I'm just...

REES: -- and...

QUEST: -- just -- let me just -- let me drill you on that, because I just want to thought -- to push on that a bit. You don't capture individual information, but you do capture collective information, don't you?

REES: We allow the users to choose what collective information that we capture. So we put the end-user in control of their own information that they share, either personally or anons -- anonymously.

QUEST: Right. And -- and to that extent, do you think, philosophically, do you think that the user has to now accept that this is something that we do have to live with if we want to enjoy the benefits of the Smartphone and that people should stop being, perhaps, so precious about it?

REES: I think the most important thing is that the -- the end customer, the consumer, is the person that's in control. Some people will want to share information, like where they are and -- and what they're doing. And if they do that, they may get extra things in return. If you share where you are and then you're searching for pizza or a restaurant, then it will tell you things near where you are.

If you don't want to share that information, you'll get just general answers back.

The most important thing is that it is the consumer who is in control. They make the choice about what they -- the information they give up and to see what benefits they get in return.

(END VIDEO TAPE)

QUEST: Windows phone -- excuse me, Windows phone there.

Now, Seth Blatter today says crisis, what crisis?

Football isn't in crisis. Look, he says what is a crisis?

Well, I decided it was time to ask you to define crisis or crises.

Rafael Morino (ph) to @richardquest says: "A crisis -- challenging situations to stretch beyond mental frames with the goal of exiting in better shape than you have entered."

Vasas Benjamin (ph): "Another one from the FIFA pres. There's your reaction."

Vicky Viveck (ph) -- I beg your pardon -- Raj Anand (ph) says: "This is an old man in denial. There's plenty more where that came from."

Arun Hen (ph) says: "A crisis is when to exec members suspended and one calls for the president to be stopped."

"Crisis," says Lateef Fayez (ph), "crisis, when everyone starts fainting in the heat, just turning up to Qatar to play football."

And, finally, another one for crisis, what crisis. Cuncile -- Sunile Kutaid (ph): "The buck stops at Blatter's desk. All this mess has been on his watch," to which he looked at that, of course, "at his watch. If he had any honor, he would resign and not contest."

That, according to you, is what a crisis is all about.

Quest@CNN.com is where you can e-mail us on that. And the Twitter address -- well, the Twitter where, of course, I'm reading your Tweets from is @richardquest.

They are some of the most sought after automobiles on the planet. When we come back, we'll take you inside a very selective club and have a drink at Ferrari headquarters.

(COMMERCIAL BREAK)

QUEST: Since it first came off the car -- or the first road car came off the production line 64 years ago, Ferrari has made cars that have been desired by millions and driven by only a few.

Don Riddell met the head of the company to find out what makes Ferraris turn heads wherever they go.

(BEGIN VIDEOTAPE)

DON RIDDELL, CNN CORRESPONDENT (voice-over): Luca Cardero di Montezemolo is a very busy man. The 62 -year-old has been Ferrari's chairman since 1991 and he has one of the most prestigious jobs in Italy, overseeing the design and production of both Ferrari's racing cars and also some of the most sought after road vehicles on the planet.

Ever since the former racing driver, Enzo Ferrari, started to build his own cars in 1947, the scarlet machines adorned with the black prancing horse have inspired love and devotion, so much so that the merchandising of the brand is sold all around the world. It even has its own theme park.

And it's from the company's factory base in Maranello, just outside Moderna, where these ideas and dreams continue to be made a reality.

But what is the key element that makes a Ferrari a Ferrari?

LUCA DI MONTEZEMOLO, CHM, FERRARI: Ferrari has to be like a good- looking girl. For me, the beauty, the design, the traditional and the innovative mix of the internal design are absolutely crucial, together with extreme technologies.

RIDDELL: Design is important, but the Ferrari legend is one that has been built up over decades of mechanical mastery. So, perhaps the magic ingredient is its history.

PIERO FERRARI, VICE PS, FERRARI: The history of the past is something that you have to keep, to remember. We have a nice story. Ferrari is here and we are -- we have a lot of collectors around the world. And this is something very special for Ferrari.

RIDDELL (on camera): I imagine that this would be a hard company to leave.

Do you have staff here that stay for a whole lifetime?

P. FERRARI: Yes, we have many people upon where they left the school until they retired.

RIDDELL: And when you train your staff...

P. FERRARI: Yes?

RIDDELL: How do you train them to be a Ferrari employee?

Can you teach that?

P. FERRARI: Yes. We -- we are doing this, telling them the story of -- of the company, telling them about my father.

RIDDELL (voice-over): Ferrari's formidable reputation has always been built on racing, primarily in Formula 1, where they're the only team to have competed in every season during the history of the sport. No other team can match their pedigree.

(on camera): Clearly, the history, the design and the racing pedigree are important. But the one thing everybody here at Maranello tells me is that it's the fun that makes a Ferrari a Ferrari.

Let's see.

Hang on.

My heart is absolutely pounding.

All right, so perhaps a Ferrari test driver helped me with some of those track shots. But the point is made.

L. MONTEZEMOLO: You know, when you drive a Ferrari, whatever is the color, you don't drive a car. You drive a dream.

(END VIDEO TAPE)

QUEST: You may drive a dream, but Don Riddell's ambition and dream seems to have come to fruition. I've never seen Don looking quite so cheerful and happy as he was there.

Guillermo is at the World Weather Center.

I think you're more of a bicycle man than the Ferrari...

GUILLERMO ARDUINO, CNN METEOROLOGIST: No. No, I'm not. I would love to be there inside...

QUEST: Oh, no, no.

ARDUINO: Yes. Yes. In fact, I got an invitation to go to Spain next month and drive a Ferrari, but, of course, CNN is not going to let me go. So I'm going to...

QUEST: Imagine my surprise -- imagine my surprise. Guillermo is on holiday again.

(LAUGHTER)

ARDUINO: I'm going to be driving my Honda Accord around Atlanta.

What about that change?

QUEST: Hey, hey, hey, hey, hey, it'll get you from A to B and it will keep you dry.

ARDUINO: Absolutely. I love it.

QUEST: So the weather forecast.

ARDUINO: Did you notice the weekend in London?

A little bit rainy it was. And it's going to be there, though. But it -- we have a lot of rain. I'm going to show you the radar, so you'll see it. I'm going to go to the side. Look. Wow! So much. Even though it rained mostly in the north. But look, now this -- this storm is going to finally clear and we get some more rain behind. Nothing compared to what we see in France.

These storms are actually bad. And today or tonight, they're going to stay here in the central parts of France. And then they're going to move to Germany. And that's where we may see some severe weather.

So the moisture that is coming here from the south is increasing and also bringing more chance for severe storms, especially in Germany.

Don't think that Paris is going to be lovely after the storm, because we see some rain still. London is improving a little bit, but not by much. And Amsterdam, Dublin, Brussels, again, we -- we came back to the same pattern and we see lots of rain. But Madrid, Rome, Milano looking fine.

So severe weather, watch out. That section into tomorrow morning of France and also the Valencia area of Spain. And then this area is going to move into Germany during the day on Tuesday. And that's where the bad weather is going to be.

You see the difference, look?

Eighteen, sixteen, Paris and London, and still very warm, indeed, in Berlin. Short-lived. It's going to change very soon. The east is very warm. Kiev, you know what I'm talking about if you're watching from there; Bucharest in Romania, the same thing.

Also, on the weekend, wet get a lot of rain in Japan. As an example, I have a picture to show you. Look at Ishinomaki -- Ishinomaki here. Look at so much rain.

Do you know why?

There was a cyclone there that actually brushed the coast. Now it's long gone. You see remnants of it here at the edge of the screen. But it brought a lot of rain into the area.

We are looking at the South China Sea now, even though the joint storm warning center is saying, ah, it doesn't have a huge potential. But we see some circulation here in the South China Sea. So the Philippines is getting a little bit more rain.

Delays in the States on Memorial Day. Today is a holiday, Richard, you know. So New York, you know, the Stock Exchange is not operating. But we see some delays at LaGuardia.

What about that?

QUEST: Well, I -- I -- yes, yes, I'll -- I'll get -- I don't know what to say about that, except -- except I -- I look forward to a decent weather forecast for the Northeast United States, by the weekend, where I will be next weekend. So...

ARDUINO: Probably.

QUEST: -- we'll see what's left for that.

ARDUINO: Yes, better than what we had in the last days, for sure.

QUEST: Excellent.

Thank you very much.

ARDUINO: See you.

QUEST: Just remember, it's Memorial Day, Guillermo. You can wear your white shoes in the Hamptons from now on.

(LAUGHTER)

ARDUINO: Oh.

QUEST: Many thanks.

Delivering the milk of human kindness to your very doorstep.

(BEGIN VIDEOTAPE)

JOHN MATON, MILKMAN, DAIRY CREST: Could I take -- could I change your light bulb?

Oh, this is a big one. It's actually in the bad weather when most recently the snow, could you post it up a little bit.

It's not a problem.

(END VIDEO CLIP)

QUEST: And old school milkman who's a modern-day good Samaritan loves his world at work.

(COMMERCIAL BREAK)

QUEST: We'll take a look now at the World At Work.

For a man who's day starts when most of us are tucked up snugly still in bed, John Maton is a milkman, a man who has the job of leaving a pint of milk on the doorstep in time for morning cereal and coffee. It's an early start if you want to be a milkman, as we discovered when we climbed aboard John's milk truck for his daily route. John loves his world at work.

(BEGIN VIDEOTAPE)

MATON: I'm John Maton and I'm a milkman. I'm normally in here, in the depot loading round about midnight, just after midnight. And I load it and I put everything I need on for that day's work and then go off and start -- go down from the first course I work.

This is per cup or (INAUDIBLE). My round lasts anywhere between eight and nine hours. I deliver between 600 and 800 pints of milk on a daily basis.

Good, regular, daily service -- I'm reliable. That's the key.

Look for (INAUDIBLE). He's got the empties up.

If the milk is there every day -- and there's hundreds of customers out there this morning that are relying on their milkman to put their milk and goods on their doorstep. And I will do it.

I've done it as a boy, as a schoolboy. It was just the fascination of doing the job (INAUDIBLE) milk years ago. And, of course, I used to earn my pocket money that way.

Good evening, Roy.

ROY: How are you doing?

MATON: How are you?

ROY: Good morning.

MATON: That's what makes it, meeting the customers, passing the time of day and just having a little chat. And it makes you feel great.

Elderly couples come out, could I take -- could I change a light bulb?

Posting letters is a big one, especially in the bad weather when recently, the snow, could you post a letter for me?

Not a problem.

Well, it's a social thing.

Well have a couple three tomorrow, yes?

All right.

OK, Roy, thanks very much, man.

Don't forget to lock the door.

It's more -- they're not trying to (INAUDIBLE) milk a survey and it's a lot of things about delivering the milk that are involved in (INAUDIBLE).

I want one of those. I want two of those. And I want one of those. The biggest down side for any milkman is getting wet. To be in here at midnight, six nights a week, you've got to love it to do it.

At the end of my shift, the only thing I feel is tired. But I've still got a smile on my face for my customers.

(END VIDEO TAPE)

QUEST: There's something lovely about the milk arriving first thing in the morning. It may be part of a bygone age.

We'll have a Profitable Moment after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's Profitable Moment.

It is easy for the media to sound self-important, self-righteous when we don't get the responses we seek. We demand explanations from people who have no duty to give them.

Well, that isn't the case with Seth Blatter and what we saw today in Zurich, an extraordinary example of trying to hold back the floods of criticism that's surrounding his organization.

How on earth he could say that there were no crisis after what's happening is breathtaking.

As Pedro Pinto reminded us, the hurdle to prevent his reelection is very high, indeed. So it's just about a racing certainty he'll remain president, which is probably why we got the performance we saw today.

In business, you and I spend many hours learning about what is acceptable when it comes to conflicts of interest and corruption. FIFA probably has the same code.

Are they practicing it?

And that is QUEST MEANS BUSINESS for tonight.

I'm Richard Quest in London.

Whatever you're up to in the hours ahead, I do hope it's profitable.

"PIERS MORGAN" is ahead, after your headlines.

END