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QUEST MEANS BUSINESS

Breaking News: Rick Santorum Suspends Campaign for US Presidency; European Stocks Nosedive; Dow Falls Sharply; Trouble Across Europe; Europe in Crisis Mode; Breaking News: Rick Santorum Announces Withdrawal From US Presidential Race; Interview with Mike Butcher; The Millenials

Aired April 10, 2012 - 14:00:00   ET

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


RICHARD QUEST, CNN INTERNATIONAL HOST: Selling hard. Stocks are plummeting in the United States and in Europe. The down is more than 180 points.

It's a hard sell for Poland's finance minister on bringing austerity to a growing economy.

And oversold. Instagram sparks fears of a bubble. We'll have those stories for you in a moment. First, we join our sister network, CNN USA, for reports of what's happening with Rick Santorum.

(SWITCH TO US SIMULCAST)

JOHN KING, CNN ANCHOR: -- continues to do the organizational things that are necessary and he would be still available were something to happen. But I'm told by a senior campaign advisor that Senator Santorum, for both family reasons and for political reality reasons, has decided, now, to suspend his campaign for presidency.

And I am told, look for him to acknowledge the fact that he believes it is all but certain now that the former Massachusetts governor, Mitt Romney, will be the Republican nominee for president.

Why now? We do know on the family front, he's had more recent difficulty, again, with his young daughter, Bella, who was just released from the hospital early this morning.

We also know that Pennsylvania was to be his last stand. It was the state he represented in the House and in the Senate. He was leading in the early polls there but, in recent days, there have been indications and polling showing Governor Romney might embarrass Senator Santorum in his home turf.

This is a very proud man, Ashleigh. This is the candidate who, remember, was at 1 percent not long before the Iowa caucuses. He has scrapped and clawed to be in this race. He has emerged as the greatest threat to Governor Romney.

And it's been a tough one in the past few weeks as they deal with the delegate math, as they deal with the fundraising realities, but I'm told he will suspend his candidacy today.

Don't count Rick Santorum out. In his mind, in his campaign team's mind, it was important to exit gracefully, exit at the right time, because they believe, should Governor Romney go on and be the nominee and lose in November, that Senator Santorum will be a viable Republican candidate the next time around, Ashleigh. Let me put this back in so I can hear you.

ASHLEIGH BANFIELD, CNN ANCHOR: All right. And as I wait for you to put that back in so I can hear my question, John, we have been sort of wondering all along, this was the second time -- as you mentioned, the family reasons -- this is the second time that his daughter Bella was hospitalized during the campaign.

He canceled a -- I think a couple of events last time that she was in the hospital, and this time, how much of this is family? How much of this is the embarrassment factor, the delegate count factor, and the factor that moving on, maybe he couldn't be as convinced that he could pull off those additional races in the midwest and down in Texas, et cetera?

KING: Only the senator can answer the question, the balance between political reality and family. I've known him for many years, I've spoken to him many times about his young daughter.

When I was with him out in Iowa, when he was at 1 and 2 percent back last winter, Ashleigh, he talked about how hard it was to be away from her. So, there's no question that her condition, her health, is always a factor to him. And he has to answer what percentage is this and what percentage is that, and we'll hear form him momentarily.

He also knows the political reality. And he has for some time said, well, I'm not out of this yet. Maybe there's an upset to be had here. But he had opportunities. He went down, invested in Puerto Rico, a small caucus who thought Puerto Rico would matter, he went down and invested, tried to upset Governor Romney there, he failed.

In other places, he has tried to beat Governor Romney on his home turf and failed. And now, he's facing the very tough reality that -- not certain, but quite possible and some would say even likely -- that Governor Romney was going to beat him on his home turf.

And so, you have a calculation, do you want to lose at home in Pennsylvania? If you think in the back of your mind, 2016 could be right for you, there could be a job for you, should Governor Romney go on and win the election, but you believe in some capacity you have a future as a leader in the conservative movement, a future as a leader in the Republican Party, did you want to lose at home?

There's no question. There's no question that the changing poll numbers, the changing political terrain in Pennsylvania and the pressure from friends around the country, some of whom may not like Governor Romney, who may not be enamored of the possibility, the prospect, the likelihood, of Romney as the nominee, but they see it as inevitable now, and they don't want to hurt the party.

And Rick Santorum is a proud individual, but he's also a Republican, and he gets the politics.

(END US SIMULCAST)

QUEST: So, John King, there, with our sister network, CNN USA. And good evening. I'm Richard Quest.

From New York to Milan and even in Frankfurt, tonight, whilst we wait, of course, for further word on Rick Santorum and his election -- suspending his presidential campaign, we'll consider the stock markets, and they are cementing a losing streak the likes of which we haven't seen in many months.

Europe's debt crisis has been resurrected, and traders have returned from a long Easter weekend to let off three days-worth of pent-up fears over the European economic future. The numbers speak for themselves.

(RINGS BELL)

QUEST: The FTSE closed at its lowest point in 2012 so far. The DAX and the CAC are at three-month lows, and not a single stock made gains. And most worrying of all, in Milan, shares there fell almost five percent, UniCredit down more than 8 percent.

It's worries about Europe that spread across the Atlantic this afternoon. Felicia Taylor is in New York. We're keeping an eye on Santorum's election campaign, I'll stop you if I have to. Before we do that, though, bring me up to date. What's happening with the Dow, and how ugly is it out there?

FELICIA TAYLOR, CNN INTERNATIONAL CORRESPONDENT: Well. The selling really did begin to accelerate when we got word of those rising bond yields in both Spain and Italy, because we did have a kind of a mixed open at the beginning of the session.

But right now, the Dow is down close to the lows of the session so far, down about 1.5 percent, and that's pretty much the situation across the board.

Traders really didn't have anything to focus on until we heard about those renewed concerns about sovereign debt in the eurozone. So, what we're looking for is, after the closing bell in just a couple of hours, we're going to get the first of the earning seasons from Alcoa. Expectations are not strong, and that's also weighing somewhat heavily on the marketplace.

Overall, experts are looking for a decline of about 0.1 percent when it comes to earnings, but there are others -- naysayers, out there, that are really looking for this to be somewhat weak.

Now, part of that is because there had been such great gains coming out of slower growth. So, in comparison, it's not going to look, possibly, as great as it has been.

But nevertheless, that's what's really giving them -- the markets a struggle to get any kind of an upside. And I think this'll be the fifth straight losing session, because there really isn't anything to focus on until we get Alcoa in a couple of hours. Richard?

QUEST: All right. Briefly, Felicia, no reason for optimism. Pessimism growing. What would change the view?

TAYLOR: Some good economic numbers. We had that employment report last week. If we can get some kind of decent economic numbers, and a series of them. When you get a number that we had last week, 120,000 jobs created, that really throws a wrench into the mix. Because again, like I said yesterday, you wonder how can people get these estimates so wrong?

And there isn't enough momentum to keep traders believing that there's any kind of growth happening, at least sustainable growth. So, we need to see consistent numbers for a few months, not just one or two here or there. And again, if there are any surprises in the earnings picture, that would give some kind of a boost to the marketplace.

QUEST: All right. Felicia Taylor is in New York for us this evening. These are some of the other factors that had weighed very heavily on the markets today. Italy, the -- sorry, I beg your pardon, Spain.

The governor of Spain's Central Bank blames the anxiety on what he calls "backpedaling" from Italy on its labor reforms, and both countries seem to be in reverse gear and posting new threats of contagion. Italy's growth rumored to be much worse than forecast, according to some reports, down 1.5 percent.

In Spain, it was the bond yields that were rising. The yields are up to 6 percent for the 10-year, the highest since November, and the Spanish Central Bank governor said more capital may be needed if the economy deteriorates for banks there.

As for France, the OECD has described both France and Italy as sluggish, whilst other OECD countries are regaining momentum. France, though, is heading in a different direction, which is all the more serious considering an election is around the corner.

Paul Donovan is here, the managing director for Global Economics at UBS. Are the wheels coming off the wagon again?

PAUL DONOVAN, MANAGING DIRECTOR FOR GLOBAL ECONOMICS, UBS: Well, they were never on that securely in the first place. This has been the great problem with the wonder that is the euro. It doesn't work. And here we are seeing, very visibly, the fact that it's not working.

Governments are desperately scrambling to put in place austerity, which is damaging their growth, which is creating even more problems for the debt. It's a downward spiral at this stage.

QUEST: Right. But the people who are putting in austerity and the European bureaucrats and the ECB, they know the effect this austerity is going to have, and yet they're doing it anyway. They see the latest reports from Spain, they saw what happened -- the IMF's change in forecasts for Greece over the austerity have been absolutely staggering.

DONOVAN: Yes, but we have a problem. We don't live in a perfect world. In a perfect world, economists would run everything, and everything would be wonderful.

(LAUGHTER)

DONOVAN: But we don't live there. We've got political influences. And the Germans are saying, "We don't want to pay, therefore, you must do the following austerity."

And economists are saying, "Yes, but that's going to make the situation worse." And the two sides are not listening to each other. That's the trouble we've got at the moment.

QUEST: Are we going down again?

DONOVAN: I think we're going to have significant risks. If we start to see bond yields creeping up towards 7 percent, then the Spanish fiscal position looks a lot less sustainable, the growth position looks a lot less sustainable. We get this downward spiral.

If we can somehow get better growth coming through, then I think we stabilize the Spanish yields, and at that point, things calm down. But we need that conviction of better growth, and we're just not getting it.

QUEST: That growth is not going to come. We saw German exports that were an improved performance today, but Germany and the Northern Europeans cannot drive the whole train out of the mess, can they?

DONOVAN: Absolutely not.

QUEST: And the EFS and ESM is a dog's breakfast of a firewall.

DONOVAN: It's -- well, it's the best firewall that kindling can build, yes.

QUEST: And -- the best hope is a China that grows -- continues to grow fast, and even that looks like it might be slowing down.

DONOVAN: Well, I'm not sure that it's China, to be honest. Because China's domestic growth -- the Chinese aren't interested in buying Spanish Rioja or Greek olive oil. The Chinese growth and its domestic focus is great if you're Australian, but it's not necessarily fantastic for the rest of the world.

What we need to see, really, is a US economy powering ahead, and whilst I think the US is on a recovery path, it's not powering ahead as a recovery.

QUEST: So that -- I might have to stop you in just a moment. Whilst we listen to your last answer, we will just share, we are waiting for Rick Santorum to speak in Pennsylvania, where he's expected to suspend his campaign.

The election -- this year's election campaign, no austerity in the US, no major fiscal pullback in the US, no major upsets for the economy. So, it's the best story they've got.

DONOVAN: Well, we all know that on the first of January, in theory, a whole series of fiscal tightenings come through. In practice, of course, we know what's going to happen. Congress is going to change all these fiscal tightenings before we get there. What matters, of course, is what the campaign and what the election result does in November.

QUEST: Does -- if you look at a Romney campaign, as you look at the candidates as we know them, it looks like it will be Mitt Romney if this happens today as we see it. Does a Romney presidency change things hugely?

DONOVAN: Well, I think in terms of the big fiscal numbers, no, not that much. Mitt Romney has promised something like $900 billion of tax cuts, which will be funded by efficiency. We've heard this one before. And so, there's still a considerable degree of fiscal stimulus there.

I don't think there's a huge difference between the two, other than the fact that Romney may work better with a Republican Congress, obviously, than Obama would do. It would be a less poisonous political environment, perhaps.

QUEST: Paul Donovan, many thanks for joining us.

DONOVAN: Thank you.

QUEST: Please stay where you are for one second. We are now awaiting the arrival of Rick Santorum in Gettysburg in Pennsylvania. We are on a proverbial two-minute warning, which means he's going to arrive at any stage. It's expected that -- John King reporting that he is suspending -- Santorum, not King, that is -- suspending his campaign for president.

That would mean Mitt Romney, who's already several hundred ahead in the delegate count, is the de facto shoe-in for the Republican nomination and goes head-to-head with President Obama in the general election. And we await the arrival of Rick Santorum at the podium. We'll take a break.

(COMMERCIAL)

QUEST: Good evening. I'm Richard Quest, this is CNN. And let's go to Gettysburg in the US state of Pennsylvania, where we are awaiting Rick Santorum to speak. CNN learned a short time ago that Mr. Santorum is suspending his Republican presidential campaign, that he has canceled all his appearances later this afternoon.

And that, of course, suggests -- the suspension of a campaign is the - - it's the clever way you have to withdraw from the race for a variety of fiscal and financial and rule-based regulations, you suspend your campaign, and then ultimately, you withdraw.

What we'll be listening for is the acknowledgment that Santorum can't win, an endorsement of Mitt Romney as the candidate for the Republican nomination, and then seeing if he also calls on Newt Gingrich, whose campaign is bankrupt and the man has been widely called to pull out fast so that the party -- the Republican Party can get behind a single candidate.

Now, Rick Santorum had some -- started the campaign in single digits. He did have some impressive successes as he went through the nomination process and through the various primaries around the country.

But even though he did occasionally give a bloody nose to Mitt Romney and he did sometimes land the punch, frankly, he never actually made serious inroads, not so that he would get anywhere near the delegate count.

By withdrawing now, Santorum puts himself in a strong position on a variety of issues. Firstly, to influence the conference and the convention agenda to get his views, to get his positions, to get a decent space talking and giving a speech at the convention.

And secondly, if he wishes a spot in the -- either the ticket or the administration, then of course, he becomes the hero of the hour and he positions himself remarkably well for that.

And of course, let's not also forget if Obama does win the election and the next time we're looking at it is 2016, the Santorum is in a strongish position.

While I've been giving you a primer on US politics, the Dow Jones has fallen quite sharply. Not though -- I hope there's no connection between my primer and that, down 197 points, 12,731. If it continues down this sort of level, then we will be heading for one of the worst, if not the worst, performances of the Dow so far this year.

The European markets were also off very sharply. The FTSE, the DAX, and the CAC in Paris, and in Italy, the market lost almost 5 percent. The worries there, of course, are rising bond yields in Spain and what is happening in other European markets. That's the way the day is trading, some people suggesting that things are very much deeply uncertain at the moment.

And into this maelstrom of uncertainty, we do have tonight's breaking news, which does come to you, but it now looks as if Rick Santorum is pulling out of the US presidential election, doing it by the mechanism of suspending his campaign. That's the polite way of saying it, and we'll be listening to see exactly what he says when he does say.

Let us join our sister network, CNN USA, as we consider what this is all about. John King.

(SWITCH TO US SIMULCAST)

KING: -- to try to change the tone and the tenor of the conversation. Which choice will the speaker make? He's going to get that question as soon as somebody gets in front of him. You see the Santorum family.

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": Yes, here they -- the family's coming in. Senator Santorum is there. They're getting ready to address all of us. This is an historic moment, so let's listen in.

FORMER SEN. RICK SANTORUM (R), PA, PRESIDENTIAL CANDIDATE: Very much, it's always an honor to be here in this beautiful town of Gettysburg, such an historic town.

First and foremost, I just want to thank everybody for the outpouring of prayers over the past weekend. We had a -- a difficult weekend. We -- Good Friday was a little bit of a passion for us with -- a passion play for us with our daughter, Bella, who is --

(AUDIO GAP)

SANTORUM: -- getting, unfortunately, very sick. We ended up in the hospital all weekend, but I'm here to -- just to report for -- to start out things that she is a fighter, and she is doing exceptionally well and is back with us in the family, and we are looking forward to spending a lot of great time with her.

But it did cause us to think, and as the role that we have as parents in her life and with the rest of our family, and this was a time for prayer and thought over this past weekend, just like it was, frankly, when we decided to get into this race.

Karen and I and the kids sat at the kitchen table and talked about our hopes and fears and our concerns, and we were very concerned about our role as being the best parents we possibly could to our children in making sure that they had a country that was, well, where the American dream was still possible.

I think that a lot of -- a lot of concerns that we had, that Karen and I had in particular for our family was that, with what was going on in Washington, DC, and all of the problems that you've heard me talk about on the campaign trail, that that American dream was slipping not just from the hands of average Americans, but for all Americans, that that dream was slipping away.

And that we had to, as good parents, to go out and do what we could to take on that responsibility for our children and for children across this country.

And so, we started out, almost a year ago, now, in Somerset, Pennsylvania, and I told, well, my story, our story, of our family and my grandfather, who came to this country and worked in the coal mines, and my father, who served our country in World War II. And as you heard throughout the course of this campaign, talked about my stories and stories of our families.

But after a while, it became less about my stories and more about -- what kept us going were your stories. Stories of people across America that we had the privilege of getting a chance to know and to interact with.

When you travel around, one such story was a guy named Chuck who had a pickup truck, and joined our team and drove us around in his Dodge Ram pickup truck for months on end and did so as a volunteer to -- because he believed. He believed that we provided the best opportunity to turn this country around.

I met a lot of folks in Iowa that I'll never forget. Folks like Sam Clovis, who's a talk show host, and I'll never forget this fighter pilot, man of very strong convictions, welling up and tearing up about what was going on with our country and particularly with our national security.

And laying out not a three-legged stool of Ronald Reagan, but a four- legged stool, with the constitution being one of those vitally important leg that we had forgotten about.

People like Wendy Jensen, who was our best volunteer, 5,000 phone calls. And just a few days before the primary, she -- because she was someone who was dealing with a disability, dealing with an illness, she passed away shortly before the caucus, but was a -- was someone that I remembered, her passion for the least of us, those who are on the margins of society as many would have looked at her.

Folks in -- even today, because of our daughter, Bella, who come to -- who came to our rallies, one after another, in wheelchairs, bringing their special needs children and holding signs up of children saying, "I'm for Bella's dad."

(LAUGHTER)

SANTORUM: Just a beautiful idea of, again, not my story, but their stories, was what really fueled our campaign and gave us the energy, at a time when over and over again we were told, "Forget it, you can't win." We were winning. We were winning in a very different way, because we were touching hearts, we were raising issues, that, well, frankly, a lot of people didn't want to have raised.

Our best phone caller after Iowa was a young man who came to our first event in Oklahoma in wheelchair, named Nathaniel, who had Spina Bifida, and wanted someone who spoke about people, again, that are overlooked by society or don't seem to be as valuable as others in society.

Folks like the Duggars, who -- the Duggar family, who traveled around with us in their bus and gave their time and energy because, again, they believed in the basic importance of having strong families as part of a strong country that we can't have a strong economy, as you've heard me say over and over again, without strong families and a strong moral fiber that makes us the moral enterprise that is America.

Even fun things, like the sweater vest.

(LAUGHTER)

SANTORUM: Amazing thing, that sweater vest. It happened on a night I was doing an event for Mike Huckabee in Des Moines and showed up and everybody was in suits and ties, and I showed up in a sweater vest. And it turned out I gave a pretty good speech that night, and all of a sudden, the Twitterverse went wild saying it must be the sweater vest.

(LAUGHTER)

SANTORUM: And from that point on, the sweater vest became the official wardrobe of the Santorum campaign. And the cool thing was, we -- obviously we have a big part of our campaign is the manufacturing base of the economy.

So, we of course sourced that sweater vest in a company that was making them here in the United States, so we ended up going to that little company up in Bemidji, Minnesota, in the middle of winter. It was a beautiful day, and we got a chance to see that little plant that had been around for almost 100 years.

And turned out, we're the best company -- best customer that Bemidji Wool and Mills has ever had in their entire history. So, it's been a -- it's been a wonderful story after story of people who have come forward.

Two girls who put together a song in Tulsa, Oklahoma, called "Game On," who have traveled and followed us around, and over a million hits on YouTube of that catchy little tune that they were inspired to give.

And even today, we have folks working for us in Texas to make it a winner-take-all primary, because they want to make sure that we have the best opportunity to -- for Texas and for conservatives to have a voice throughout the course of this primary.

It has been inspiring to me, the story after stories that we've been engaged with, and it turns out that it really wasn't my voice that I was out communicating, it was your voice. The voice that you gave me from the stories and experience I had.

(US SIMULCAST CONTINUES)

QUEST: John King with the analysis of the -- of what was said so far.

And this is CNN.

Rick Santorum withdrawing from the U.S. presidential race, the Republican prospective nominee in the race for that job.

We'll have more QUEST MEANS BUSINESS in a moment.

Instagram, after the break.

(COMMERCIAL BREAK)

QUEST: While Rick Santorum was withdrawing from the U.S. presidential race, the Dow Jones Industrials was withdrawing from its -- well, there were no gains. Things are getting worse, down 212 points now, off over 1.5 percent on the Dow.

It is worries over Europe. It is worries over the strength of the U.S. economy, with the job reports, a whole raft of issues that is -- and, of course, the earnings reports, as we're about to move into Q -- into the first quarter's earnings season and get some results.

Other big stories out of the United States with global ramifications, barely has Facebook's billion dollar purchase of Instagram been announced and there's a backlash. Furious Instagram users are venting their spleens on social media network and vowing to delete their accounts.

One Tweeted: "Must delete Instagram from my phone. I don't want any sneaking doorways into Facebook privacy grabs."

The feeling is not universal, though. There are some who are saying it's a backlash against the backlash.

Alex C. Williams Tweets that if you delete your Instagram account because you have brought Facebook, you probably also have a Facebook full of canned foods and flashlights.

Somewhat a little crude.

Facebook chief executive, Mark Zuckerberg, says Instagram will continue to be run independently, writing on his Facebook page that Instagram users will be able to pick social networks to link their pictures to, including sharing them with or with not, Facebook.

Backlash or not, Instagram's rise from nothing is nothing short of meteoric. If you like over here, the story. We can just compare Instagram with the traditional media companies, healthy and not so.

Let's start with Instagram. It's just 18 months old. It's got 13 employees and the $1 billion worth of rev -- of payment for buying it from Facebook will be paid in cash and in Facebook's pre-IPO shares, which, as you know, are so very highly valued.

Facebook is playing a blinder, using its paper to over -- well, so I was going to say overpay. That's a matter of opinion. But what some say is overpay for Instagram.

But if we compare Instagram to, for example, Sony, good old Sony, 66 years old. It's going to have a $6.5 billion annual loss forecast. That's the worst loss in its history. Sony is in trouble because of its TVs. And this week, we expect to hear -- it's rumored that 10,000 jobs are to go at Sony.

So you've got the -- the upstart. You've got the giant. And you've got the fallen.

Kodak, 131 years old, 17,000 employees. But the only fact you really need to know about Kodak is that it is in Chapter 11 bankruptcy and wondering what on Earth it's going to do next.

Mike Butcher is the editor of "TechCrunch Europe."

MIKE BUTCHER, EDITOR, "TECHCRUNCH EUROPE": Well, Mark Zuckerberg is playing a little bit of a blinder, I would say. He's very clever. Facebook is pre-IPO. It requires growth post-IPO. It needs to keep its investors on board post-IPO and it needs to keep everyone interested in the IPO, as well.

It obviously has 858 million users. It's heading toward a billion. It will require more growth.

QUEST: Right.

BUTCHER: Instagram has got that growth curve.

QUEST: Yes, but you see, they've got the users. If you've got a billion users, you don't need Instagram's how many ever, whatever couple of million or few million or 100 million that Instagram has got. So one's -- if you're a member of one, almost certainly you're a member of the other.

Why pay a billion for this?

Facebook is already 48 percent of all pictures online.

BUTCHER: Well, this is true. But the -- the interesting thing is that Facebook has not actually monetized its traffic. It's getting a third of the traffic from mobile right now. Instagram is doing quite well, very well, in fact, on -- on working out how to turn that into cash, that mobile traffic.

Facebook hasn't done it. Instagram has. It's got incredible growth and they're buying a great team. This is partly an acqui-hire here, as well.

QUEST: So even if it makes sense as a strategic move, let's just put the price aside. As a strategic move, Instagram is number three in pay -- in photos. Facebook brings it in-house. It can amortize on it. A billion is a lot of money.

BUTCHER: It is true -- true. It is a lot of money. And I think a lot of people were...

QUEST: Did you -- did your eyes pop when you saw...

BUTCHER: Well, our eyes, the TechCrunch office, and our eyes did pop somewhat, yes. And, sure. Sure.

And why not maybe two thirds at that price, perhaps?

I suppose what we're talking about here is you've got to put this in context. The Broadcast.com acquisition by Yahoo! ! (ph) in 1999 at the Highland.com boom (ph) was $5.7 billion. That was about $11,000 per user.

What Facebook here is paying is $28 per user. So quite a lot less, even though it sounds like a big number. The -- the other -- the issue is that it's buying into what they call the next wave of advertising...

QUEST: Which is what?

BUTCHER: -- the interest graph. So what you're taking photographs of is interesting and then you can do a whole new business model based on that interest graph. It's -- it's getting -- it's taking the Internet -- the community by storm companies like Pinterest, etc. Etc.

QUEST: Well, talking about Pinterest, I mean it -- which I've -- I've not quite worked out what that -- what -- what they do. And I'm sure that you can give me a lecture -- a nice little lecture and a tutorial on it.

It's -- if Instagram is worth that much, a billion, what's this Pin thing worth?

BUTCHER: Pinterest, well...

QUEST: Pinterest is worth, I saw some numbers.

BUTCHER: Well, yes, they are talking and those hundreds of millions sort of prices at the moment. And the great thing about Pinterest is it's really gone after 50 percent of the pop -- the women in -- the women in -- in the market who really aren't attracted by some of these other companies.

QUEST: The core question, is this a bubble of which we should be aware or be wary?

BUTCHER: I would say no.

QUEST: No?

BUTCHER: But there you go.

QUEST: A firm no.

Good to have you on the program.

BUTCHER: A pleasure.

QUEST: My thanks to you for joining us.

From Instagram to the type of connected youngsters who revel in Instagram's delights, the millennials, in a moment. And they've got ideas to sell and they'll help you make a billion.

QUEST MEANS BUSINESS.

Good evening to you.

(COMMERCIAL BREAK)

QUEST: Like it or not, the millennials are bursting with ideas. And they don't wait to be asked to share them.

In London, selling ideas is the name of the game for Joe. Even if they come from someone else on the team, he'll sell them for you.

In Johannesburg, Millie knows that her opinions are her selling point. It's getting them heard that's the hard point.

Whether it's Joe or Mill -- or Millie, tonight, they are The Millenials.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: (voice-over): Previously on The Millenials, Millie Bongela showed us how she's redefining what it means to work.

MILISUTHANDO BONGELA, BLOGGER AND BOTIQUE OWNER: I sometimes wake up really early. But sometimes I wake up at 12:00. And it's only recently that I've got to understand that, actually, Milli, this is exactly what you work for.

UNIDENTIFIED CORRESPONDENT: Joe Braidwood told us that modern communication has its limitations.

JOE BRAIDWOOD: Being able to actually get face-to-face with some of these people and talk to them about what you're doing is so much more powerful than an e-mail in -- in a massive inbox.

UNIDENTIFIED MALE: Joe is sticking to this philosophy, at least for today.

UNIDENTIFIED MALE: Hi, Joe. nice to see you again.

BRAIDWOOD: Sibou, come in.

UNIDENTIFIED MALE: (voice-over): Right now, he's meeting his London P.R. team to prepare for key events they have in the works.

UNIDENTIFIED MALE: One thing I wanted to check, though, in just basic preparation.

UNIDENTIFIED MALE: And look for ways to create opportunities out of them.

BRAIDWOOD: Should we talk about creative campaign ideas?

UNIDENTIFIED MALE: For 27 -year-old Joe Braidwood, this is an opportunity to engage his team.

BRAIDWOOD: A number of the judges are probably going to leave it to the last minute down there at the apps.

UNIDENTIFIED MALE: Bring ideas to the table.

BRAIDWOOD: Is it worth us revising our market pitch?

UNIDENTIFIED MALE: This is how millennials brainstorm.

UNIDENTIFIED MALE: Let's just throw ideas out.

BRAIDWOOD: If it's a keyboard where you don't have to put (INAUDIBLE).

UNIDENTIFIED MALE: That's something that SwiftKey can potentially do.

BRAIDWOOD: A pipe to SwiftKey that understood trending terms, because that's the least risky option.

UNIDENTIFIED MALE: If we could SwiftKey (INAUDIBLE) what trends you'll almost find (INAUDIBLE).

BRAIDWOOD: And then does it predict what cab number you need?

UNIDENTIFIED MALE: This exchange of ideas means that everyone here has a voice.

UNIDENTIFIED MALE: We were back in July and when it comes from there, lots of things have happened. And there's just more progression.

UNIDENTIFIED MALE: And every idea counts.

UNIDENTIFIED MALE: What about texting lyrically?

UNIDENTIFIED MALE: Not everything goes, though.

UNIDENTIFIED MALE: For me it feels like that -- that -- that's like a bit too clever.

UNIDENTIFIED MALE: It's quite a British thing.

UNIDENTIFIED MALE: Teamwork seems to come naturally. But so does the desire to lead.

BRAIDWOOD: I try very hard not to be a micromanager. I think there are things in the business that I feel very, very particular about. But when you bring in experts to do a job, let them do the job. And there's nothing more annoying than a brat like me ringing them up every five minutes, saying, have you don this, have you don this, if we enter the market in the right way.

UNIDENTIFIED MALE: Joe knows that this inclusive work structure ultimately gets results. So this millennial has a relaxed, authoritative approach -- crucial in a growing business.

UNIDENTIFIED MALE: When will that be done, the 100 words?

UNIDENTIFIED MALE: Today.

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: OK. Because then I can look at it before I go.

BRAIDWOOD: It's an occupational hazard when you have to let go of something that you're quite perfectionist about and -- and get other people on board. But I, you know, I -- I've kind of accepted that if I'm not going to do everything, it's not all going to be done my way. But that's not a bad thing. That's -- that's just like, you know, what happens when you grow and you bring other people in.

UNIDENTIFIED MALE: Milli isn't a millennial who depends on others. She does it all. And in return, expects and demands.

BONGELA: What kind of party runs out of champagne at 8:00 p.m.?

UNIDENTIFIED MALE: Tonight, dressed to the nines for the launch of Grazia South Africa...

UNIDENTIFIED MALE: Very glamorous.

UNIDENTIFIED FEMALE: Very trash glam.

UNIDENTIFIED MALE: -- she's doing what she does best -- working the floor and her contacts.

UNIDENTIFIED FEMALE: When is the first issue of Grazia coming out?

BONGELA: We're hoping for the end of May.

UNIDENTIFIED FEMALE: Have you started shooting it?

BONGELA: If I'm not at home in the evenings, I am usually at some fashion event that involves lots of champagne drinking and lots of socializing, which is how it's -- it's become an integral part of my job. And in the beginning, I used to feel guilty that I'm not doing anything like everybody else, I'm not waking up at 9:00 in the morning and going to work and sweating until 5:00.

UNIDENTIFIED MALE: It might blur the line between work and play, but this is where Milli raises her profile, where opportunities can be found.

UNIDENTIFIED FEMALE: I almost wore a dress I bought at your shop in Cape Town to this event tonight. And I was actually looking for you on Twitter.

UNIDENTIFIED MALE: For this young entrepreneur, being the face of her business can take its toll.

BONGELA: I find it difficult to keep the whole Miss Milli B vibe going. Obviously, it's like a show sometimes. Sometimes I have to go to events and I'm like, honestly, if I didn't want -- like money, I wouldn't be here, because it really has nothing to do with me. But, you know, if they want you there and it's like, oh, gosh, I really would rather be at home watching a movie.

UNIDENTIFIED MALE: As Grazia drums up support for its magazine...

(VIDEO CLIP)

UNIDENTIFIED MALE: -- Milli doesn't hold back, sounding off on the challenges it may face.

BONGELA: So I don't know how they're going to maintain that kind of, you know, high fashion. Good luck to them.

UNIDENTIFIED MALE: Milli's opinions are highly regarded and she knows how to play on that. But it doesn't mean this millennial can't enjoy herself.

BONGELA: I love oysters.

I've only come to peace recently with the fact that, actually, I am working when I'm out schmoozing people, because it means I meet a lot of people and, you know, you never know where that meeting might take you. And it's also customers for the shop.

So that's how I -- I ease my own guilt. And as you say, it's work. It's work. But it's -- it's fun.

UNIDENTIFIED MALE: Next week on The Millennials, Joe is in Barcelona for the Global Mobile Awards.

But will he beat tech giant Google to the prize?

And in New York, money on a new roll -- Michael Burbach finds part- time work with one of New York's most famous photographers.

(END VIDEO TAPE)

QUEST: Our millennials have been blogging for us. This week, it's Joe Braidwood, who you saw there. Has been writing on Facebook's purchase of Instagram, which we talked about in a moment. And has been asking whether this really is the beginning of another tech bubble. You can read his blog at CNN.com/themillennials and I've Tweeted it, as always. The Tweet address, @richardquest.

Now, a few moments ago, the former U.S. senator, Rick Santorum, suspended his campaign to be the Republican candidate in this year's presidential election.

This is how he did it.

(BEGIN VIDEO CLIP)

RICK SANTORUM (R), FORMER PRESIDENTIAL CANDIDATE: We made the decision to get into this race at our kitchen table and against all the odds. And we made a decision over the weekend that while this presidential race, for us, is over, for me, and we will suspend our campaign effective today, we are not done fighting.

We are going to continue to fight for those voices. We`re going to continue to fight for the Americans who stood up and gave us that -- that air under our wings, that allowed us to accomplish things that no political expert would have ever expected.

(END VIDEO CLIP)

QUEST: Now, that's Rick Santorum.

And the Republican frontrunner in the race, now the just about certain nominee, Mitt Romney, has released a statement on that news.

Let me read it to you. He says: "Senator Santorum is an able and worthy competitor. I congratulate him on the campaign he ran. He's proven himself to be an important voice in our pun -- in our party and in the nation."

When we come back in just a moment, I will update you on the markets. The United States, the Dow Jones, in particular, is taking a tumble. You need to know the numbers.

I'll have it after the break.

QUEST MEANS BUSINESS.

Good evening.

(COMMERCIAL BREAK)

QUEST: It doesn't matter whether you call it a correction, a falling out of bed, a reaction, a bit of gout, indigestion, the numbers show what's happening in New York.

No Profitable Moment tonight. Off just over 200 points. The Dow trading tonight at 12728.

It comes on a day when there were very sharp falls in London, Frankfurt and Paris. And the Italian market was down almost 5 percent on worries over what's happening with Spain, where bond yields went over 6 percent.

So, as you can see, a nervous day in the financial world.

And that, tonight, is QUEST MEANS BUSINESS.

I'm Richard Quest in London.

As always, whatever you're up to in the hours ahead, I hope it's profitable.

This is CNN.

END