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QUEST MEANS BUSINESS

S&P Breaks Another Record; Thailand, Qatar Criticized for Human Trafficking; Islamic Insurgents Take to Social Media; Sherlock Holmes No Longer Subject to Copyright

Aired June 20, 2014 - 16:00:00   ET

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


PAULA NEWTON, CNN INTERNATIONAL ANCHOR: The S&P breaking another record and the Dow so close to 17,000. It's Friday, the 20th of June.

Blacklisted - Thailand and Qatar are told their records on human trafficking are abysmal. As Islamic insurgents take to social media,

Twitter founder Biz Stone that CNN sites like his must remain neutral. And, it's elementary my dear, viewers. Sherlock Holmes is no longer

subject to copyright. I'm Paula Newton, and this is "Quest Means Business.

Good evening. Two damning reports lay bare the extent of the crisis facing the world's most vulnerable people. From the U.S., claims that more and

more countries are failing to prevent or even fight human trafficking. And from the U.N., a grim milestone in the global refugee crisis. Remember

this now, the number of people forced to flee their home tops 50 million for the first time since World War II. Now, that number is likely to climb

with more than one million people already on the move by the intensifying violence in Iraq.

Now, we start in Washington where the State Department says the list of countries failing to tackle the scourge of modern-day slavery is getting

longer. Now, the countries shown in red are ranked as tier 3 countries - the worst possible designation because they've not done what they have to

do to try and combat slavery. Now, they are joined this year by more countries, and that is Thailand, Malaysia, Gambia and Venezuela. Now, the

State Department says those countries do not meet minimum standards and are making no effort to improve.

Now, the U.S. can penalize tier 3 countries by withholding some foreign assistance. Secretary of State John Kerry says not even the U.S. is

immune.

(BEGIN VIDEOCLIP)

JOHN KERRY U.S. SECRETARY OF STATE: For years we have known that this crime affects every country in the world, including ours. We're not

exempt. More than 20 million people -- a conservative estimate - are victims of human trafficking. And the United States is the first to

acknowledge that no government anywhere yet is doing enough. We're trying. Some aren't trying enough. Others are trying hard, and we all need to try

harder and do more.

(END VIDEOCLIP)

NEWTON: Now, an important financial component to this is that human trafficking is an industry, yes, an industry, that generates a shocking

$150 billion profit each year. Now, that's according to the International Labor Organization. Two-thirds of the profits come from sexual

exploitation. Economic exploitation like domestic and agricultural work generates the remaining third. Now, profits are highest in Asia, estimated

at just under $52 billion, but almost a third of that $150 billion we were telling you about, it generated in the European Union and other developed

nations.

Now, Justin Dillon is the founder and CEO of Made in a Free World. It's a network of people and businesses who want, as they say, make freedom go

viral. And on Friday, you got a very public endorsement from the U.S. Secretary of State.

(BEGIN VIDEOCLIP)

KERRY: That's why we're partnering with MadeintheFreeWorld.com - MadeintheFreeWorld.com - in order to develop a risk assessment tool that

will help business leaders weigh the risks of trafficking throughout their supply chains.

(END VIDEOCLIP)

NEWTON: Justin now joins us from Washington. Thanks so much for joining us. It really was quite a callout today but a lot of expectation riding on

your shoulders as well. You know, the Secretary was very clear - he's saying even developed countries can't be arrogant about this. It is so

difficult. People and companies wanting to do their best, not wanting to contribute to human trafficking - how do you verify where it's going on and

how to stop it?

JUSTIN DILLON, FOUNDER AND CEO, MAKE IN A FREE WORLD: Well I appreciate the Secretary's remarks today, and I think it is a clearing call for us to

be - to work as hard and as smart as those who are making profits off the back of innocent people. I think one of the things that we've not been -

done a very good job with - is be innovative. Those who are making profits in - off of - slavery are fantastically innovative, fantastically committed

to it, and we have an opportunity to do the same. And the launch of our - of the beginning of our tool and partnership with State Department is just

the beginning to be - to get one step ahead of the traffickers.

NEWTON: OK, if I'm a company or consumer and I want to know how are you going to help me to know what I should be avoiding and what I should be

doing in order to make sure my businesses are making people free or at least keeping people free?

DILLON: Yes, I think the first thing to do is to know. You know, a couple years ago we released a website called SlaveryFootprint.org where we asked

the world do you want to know how many slaves work for you? And it started a firestorm of questions. Do companies know about their own supply chains?

So for the last two years, we've been going deep into spin data that the U.N. has put out and be able to do risk assessment on every type of

expenditure that a company makes. Not only in the consumer to business market, but in the B to B market where really most of the $88 trillion that

is spent a year is used. So we really see this as a way to start to leverage consumption with intelligence based off what your - companies

knowing what they're spending and then using their purchasing power downstream to be able to root out the illicit markers - markets, excuse me.

NEWTON: What do you think is your best tool at this point? Because we just explained what's at stake -- $150 billion. You know what you're up

against.

DILLON: Yes.

NEWTON: I mean, this is really making money for a lot of people.

DILLON: Yes, it is. And it's going to be hard to fight that amount of profit with charity alone. So we just have to work smarter, we have to

make our dollars go further. The amount of money, the bag of money, that I'm most excited about is the $88 trillion in play in the marketplace. And

if we can begin to leverage our consumption, through the use of data, through the use of predictive analytics which we're just getting started

on, these are the place - these are the types of tools that we use inside of business to handle all other kinds of risk. What we're asking the

business community is let's get smart around this as well and start using those same tools to be able to make great decisions for people who

basically produce our lives.

NEWTON: In terms of trying to audit what's going on, you know, CNN we have this freedom project here for years. We've been trying to get to this

issue. Sometimes we revisit a story, there are people that were no longer victims, you return in a year, they're victimized again. Then in Pakistan

where they make footballs, I've been in Africa where they're in nurseries -

DILLON: Yes.

NEWTON: I find it very difficult to verify if I'm being told the truth about the people are being treated and what's going on in their lives.

Will you be able to get to those victims to make sure they have a voice that they feel comfortable sharing their stories?

DILLON: Well, think supply chains are the best chance for us to build a value chain - all the way down to the bottom. And keep in mind you're

talking - companies can't do this alone. They have to work with the local governments, and those local governments have to enforce those. But really

this is about influence, it's being able to leverage our influence. So the verification comes over time, and I think that word needs to be used very

carefully. And I even think the word certification needs to be used very carefully. These are older ideas, and for us, we need to start looking and

be more proactive using leading indicators to be able to create the influence that we want to create. And over time - and that's why we

believe in the power of a network, that's why we believe data, software and communities - is really the way to be able to create that network of

freedom that we can start to see over years.

NEWTON: Oh, we certainly wish you every success, and understand the great challenges ahead of you. We'll continue to keep track. Thanks so much for

your. Appreciate it.

DILLON: Thank you.

NEWTON: Now still to come on "Quest Means Business," as the global refugee crisis hits a new high, governments and aid groups are pushed to the

breaking point. We'll hear from the U.N. High Commissioner for Refugees. That'll be up later in the program.

Now, to the U.S. markets. And it's shaping up be a high-five week for investors. Now, the S&P hit, yes, another record - another one. And the

Dow touched its own intra-day record before falling back down. Now, tech stocks seemed a little bit less excited. The NASDAQ was dragged down by

poor performance by Oracle. You see the Dow Jones Industrial average there now. Up 25 points today, it had been up quite a bit more, but still given

a week where we had so much geopolitical risk, the market, those bulls, still very - really running roughshod over Wall Street these days. We'll

wait to see what happens on Monday. Now, European markets had a mixed day. The FTSE and Zurich SMI closed higher, but it was a different picture in

France and Germany.

Now, the French government has picked up what it wants in terms of buying Alstom, and it's taking its own piece of the action too. In Paris, the

French government has agreed a deal for the state - for the state - that's the French government - to take a 20 percent stake in Alstom. In return,

they'll allow approval of the GE takeover bid. Now, the two firms will embark on joint ventures in steam turbines, renewable energy and electric

grids for General Electric based in Fairfield, Connecticut. The deal is its biggest ever purchase in Europe, and it's currently reviewing the

French proposals.

What's on the table pushes out Siemens which is based in Munich. It was hoping to launch its own rival bid in partnership with Mitsubishi.

(BEGIN VIDEOCLIP)

ARNAUD MONTEBOURG, FRENCH ECONOMY MINISTER, VIA TRANSLATOR: The conditions we're about to disclose to General Electric's CEO, Jeffrey R. Immelt, will

reaffirm our patriotic vigilance. These conditions are tough but they are necessary.

(END VIDEOCLIP)

NEWTON: After the break on "Quest Means Business," as well as the civil conflict, there's a cyberwar going on in Iraq with ISIS turning to social

media to try and garner support. We'll come back with one of Twitter's co- founders as he defends the freedoms of social media.

(COMMERCIAL BREAK)

NEWTON: The first of hundreds of U.S. military advisors arrive in Iraq as early as tomorrow to begin trying to assess what needs to be done to fight

off the threat of ISIS. Now, in Baiji, the battle is still raging for control of the country's largest oil refinery. Neither side is in overall

control of the complex. Now, north of Baiji, there has been even more fighting between government forces and ISIS militants in the key city of

Tal Afar and one of Iraq's top Shia clerics, Ahmed al-Safi, has urged all religious sects to come together to oppose ISIS.

Now, business contingency plans are paramount in a country like Iraq, which has so many foreign interests. Many firms that CNN approached were

reluctant to speak about their plans for security reasons. Will Geddes is the managing director of International Corporate Protection says it's a key

issue, especially for oil producers.

(BEGIN VIDEOCLIP)

WILL GEDDES, MANAGING DIRECTOR, INTERNATIONAL CORPORATE PROTECTION: When in terms of the oil production, there's considerable resource obviously

that can be drawn. However, the concerns will always be for the operating companies that are currently in position there. They trying to obviously

resource that. That the infrastructure is still too weak to potentially provide a very, very secure or a sufficiently secure enough environment for

it to be able to be robust and resilient. And when we look certainly in the current events that are taking place there, certainly the lot of the

oil production has had to be put on hold. And this is a continual worry that what time and at what stage will it be that we can rely and depend on

this supply?

NEWTON: And now that seems to be a long way off. If you are an energy company working in Iraq right now, one of the main concerns has to be how

to keep those foreign employees safe - how to keep all your employees safe. How much adversity are they going to face in this in the weeks and months

to come?

GEDDES: Well certainly in the foreseeable future and certainly in the next few weeks, if not months, I think with the ISIL situation, you know, they

will have to consider very, very carefully how they're going to operate. Certainly these Syrian-based al-Qaeda-affiliated groups are taking the

opportunity to seize those very critical assets.

You know, this is not a ramshackle bunch of terrorists. This is a very highly-organized quasi-military mechanism that has taken effect. They've

taken control of considerable amounts of the oil supply areas, and as such, the foreign operators as well in partnership with the local operators, have

to consider just on a general welfare level, the safety of their staff, both domestic and international. And as to whether it is safe for them to

operate not only certainly now, but certainly into the future.

And no doubt many of these companies will be reviewing their already very robust crisis management plans. To saying, 'OK, how can we move forward

until there is an infrastructure sufficiently secure enough for us to be able to depend and rely on as we have seen in other hostile environments

around the world?'

(END VIDEOCLIP)

NEWTON: Now, the role of social media during the latest Iraqi conflict is clear to see. This week we've been reporting developments such as an ISIS

app - yes, an app to try and spread their information. There's this high- definition propaganda video from ISIS posted on YouTube, and Twitter has played a key role by allowing users to publicize the ISIS cause. It's a

point Nina dos Santos put to Biz Stone. He's co-founder of Twitter and although he's no longer at the company, he remains a shareholder.

(BEGIN VIDEOCLIP)

BIZ STONE, TWITTER CO-FOUNDER: Well, the responsibility is to keep the freedom of speech going. I mean, that's the -

NINA DOS SANTOS, NEWS ANCHOR AND CORRESPONDENT BASED IN LONDON FOR CNN INTERNATIONAL: At all costs?

STONE: As soon as you curate anything - as soon as you decide that something's inappropriate and you should take it down because you don't

think it's right, you compromise the entire idea of a platform for freedom of speech. You - it just - it doesn't work that way. If you want to - if

you want to create a platform that allows for the freedom of expression for hundreds of millions of people around the world, you really have to take

the good with the bad, and you have to understand that fundamentally people are mostly good and most of the content is going to be good content. But

you have to take the good with the bad. Everything casts a shadow.

DOS SANTOS: So how do you personally feel about the fact that ISIS has been using Twitter as a major rallying cry.

STONE: Well, personally I prefer things are in the public rather than secretly going on in the background. I mean, that's one of the benefits of

Twitter is that everything's open for everyone to see.

DOS SANTOS: Is there a way in which Twitter can identify some of this ISIS activity, work with governments to prevent people using it as a recruiting

mechanism?

STONE: Well, it's important to remember that I haven't worked at Twitter for three years. But when I did work at Twitter, I was very keen on making

sure that Twitter didn't align itself with any particular government. Again, that goes along with remaining neutral and operating under the

assumption that this is a platform for free speech and aligning ourselves with any particular government - the U.S. government or any other

government - would really compromise this neutrality and break the trust that we have with the people who use Twitter and trust that it's an open

platform.

(END VIDEOCLIP)

NEWTON: Coming up in "Quest Means Business," Brazilians angry over the cost of hosting the World Cup are promising not to go quietly. They're

back on the streets of Rio tonight. We'll have that report and a look at how the tournament is affecting displaced Brazilians. That's up next.

(COMMERCIAL BREAK)

NEWTON: Angry Brazilians are back on the streets of Rio protesting against the World Cup. Crowds are gathering to mark the anniversary of massive

anti-World Cup protests one year ago today. Over one million people across Brazil joined in the demonstration. Now last year, which turned violent

and saw police use tear grass (ph) and rubber bullets to disperse the crowd. CNN's Frederik Pleitgen joins me now from Rio. Fred, in terms of

what's going on there today, you know, I was in Brazil when that was going on and of course our colleague Shasta Darlington has covered this over and

over again for the last year. Has the tenor of those protests changed in any way?

FREDERIK PLEITGEN, CNN CORRESPONDENT: Well it certainly is changing, Paula. One of the things we're seeing since the World Cup started is that

the protests have actually been a lot smaller than many people thought. There's many who believe that potentially a lot of Brazilians simply want

to watch the World Cup, and therefore the turnout hasn't been as big.

What we're hearing from today, however, is because it's that protest for the one-year anniversary of those mass gatherings that happened last year,

that more people are going to turn out. The talk is of about five to seven thousand people on the streets of Rio tonight. And as you said, they're

already gathering. What we're hearing is that there already has been one arrest at that demonstration, apparently someone wearing a mask was taken

into custody. So a lot of the issues that were there before the World Cup started and were there last year, are still around.

One of the major issues, Paula, is of course the fact that many poorer people were evicted to build some of the World Cup venues. We met up with

a tribe of indigenous people who were taken away from right here, from around the Maracana Stadium here in Rio, and we were absolutely appalled at

the housing they received. Have a look.

(BEGIN VIDEOCLIP)

PLEITGEN: Right next to Rio's famous Maracana Stadium, this mansion is decaying in the Brazilian rain, its inhabitants evicted. Here's some of

the country's indigenous people or Indios, part of the proud Tucano tribe now forced to live in these containers.

Chief Duitero (ph) says authorities were ruthless evicting the Indios. "The removal was very sudden and very violent," he says. It was not done

in a respectful way. We tried to talk to them to do it in a respectful way, but instead they sent the riot police. This social media video shows

the police operation against the Indios in March of last year. They staged a protest to remain on the land, but that was crushed by security forces.

They've been in the containers for more than a year. Struggling to stay dry when it rains, cooking in this basic kitchen and with trash piling up

inside the premises.

The closest any of them have come to benefiting from the World Cup is carving whistles they sell to tourists. "When we're in a place this

crammed, it feels like we're in a jail," he says. "It's very hard to live this way." Their containers are more than an hour away from Rio, in this

desolate place.

This compound is a former leprosy treatment center with a hospital and a lepers' colony. It's currently being disbanded and many of the buildings

are in absolute disrepair, but there are still lepers who are being treated here. Rio de Janeiro's state government says the evictions were necessary

to finish the Maracana venue, and that there was a court order for them. Federal authorities say they will provide permanent housing for the tribe

soon. But the Tucano have been here for more than a year and feel bitter about the way they've been treated.

CHIEF DUITERO (ph), TUCANO TRIBE, TRANSLATED BY PLEITGEN: "We would like the World Cup to show the culture of the Indios in Brazil, the chief says.

Because even in the Nawas, in the middle of the Amazon and here in Rio, we are hidden and we are forgotten."

PLEITGEN: Isolated in containers far away from their home, the Tucano tribe is trying to keep their issue in the public eye, hoping they can

leave here soon if Brazil's government keeps its word.

(APPLAUSE)

(END VIDEOCLIP)

PLEITGEN: So we can see there, Paula, a lot of the issues, the underlying social issues have not been resolved before the World Cup - of course

evictions being one of them, also the cost overruns for the World Cup venues being another one. And then there's the many people here in this

country who simply feel that they're not part of this event because the ticket prices are so high, and so few Brazilians can actually afford to go

to any of the games. Paula.

NEWTON: Yes a good point not (inaudible). Fred, thanks for bringing that sad story. Now just the fact that they call them containers is still

unbelievable. Thanks, Fred, appreciate it.

Now, if you needed any more proof that football and economics go hand in hand, Europe's commissioner for economics Olli Rehn tweeted today --

perhaps he's their stand-in comic as well. "EU official recommendation to Italy and France - step up reform or at least score enough goals tonight."

Oh, I love a politician with a sense of humor. That shouldn't come as too much of a surprise, though from Olli Rehn. He is a huge football fan and

he used to be a semi-pro player himself.

Now, we -- it's time to update you on the "Quest Means Business" FOOTY 32 Index. OK, suspense is killing you, I'm sure. What is going on here? Our

World Cup special where we ranked the value of each team in the tournament and award $10 million for every goal scored - even the money apparently

wasn't enough for Italy today. Costa Rica, the early leader - and I'll show you why right here. An absolute shocker. They were on the field with

a 3-nil goal against Uruguay. It was a surprise, and they're proving to be - beating us in the earnings as well after another stunner against Italy

Friday.

Now, if you bought Costa Rica at a low, you're now sitting pretty, and you've got the top value in the index and are moving on to the next knock-

out round. So clearly you'll be making a lot more money. Honduras is what we want to take a look at next. Just going back here, we will go to the

bottom of the screen - yes. If you're a fan of Honduras, this is not going to be very good. They were playing Ecuador later Friday. These are two of

the worst-performing teams in the index, and Honduras risks dropping out of the index all together if they can't find the back of that net in the next

game.

Now, most interesting here - we are issuing a profit warning for Iran, if I can get back to it - over here. Yes, Iran - see that? Three-zero.

Absolutely nil, and we're going to show you why in a second here. Forty million was their base value. Coming up now with a World Cup zero, nil,

Quest value's still up $41 million, but we're issuing a profit warning on them right now. Now, their first game ended in a draw. They faced

Argentina on Saturday - one of the most expensive teams in the tournament - and reports are swirling of major problems in Iran's executive office.

Now, their manager says he will resign after the World Cup due to a lack of cash flow to the team. Now, the Iranian players can't even exchange

uniforms with other countries after the matches. And that is a World Cup tradition after all, but they don't have enough uniforms to actually

replace them. So, not a good deal for Iran. We will continue to keep an eye on all of this for you, but as we say, rhyming (ph) in disgust for

England sits in all this today.

Alex Thomas is here to take us a look at today's scores. England are officially out because Costa Rica are officially through. France is up now

four goals. I can't even keep up with this game anymore. They're over Switzerland and they're late in the second half. And thankfully Alex

Thomas is here again from Rio to give us the update. I mean, I have to say, to see France looking so strong right now over Switzerland - 4-nil. I

mean, they listened - apparently listened - to the EU commissioner Olli Rehn who said if you can't reform at least get the goals.

ALEX THOMAS, CNN SPORTS CORRESPONDENT: I think France is ___ of this World Cup already, (inaudible) maybe some sort of consolation for English fans.

I'll explain why - because those just like me were lucky enough to be in South Africa four years ago with Teddy, what an embarrassment France were.

They have been world champions as recently as 1998 then reached the final in 2006. But in 2010, France who were bottom of their group, didn't reach

the knockout stages. There was a strike from the players when they got upset at the manager Domenech and they came home with their tails between

their legs, frankly. Now here four years ago, they're playing their second World Cup match, and they've scored seven goals although -- I was going to

say without conceding any. I think, as I speak, Switzerland had just scored a goal in that match. Oh, no, they went close, didn't quite score.

France looking very, very good, attacking with verve. Deschamps, their manager was criticized for leaving Manchester City star Samir Nasri out.

He wanted a good team spirit - that seems to be working. So, that's how quickly international football (inaudible) can change, because for England,

they've become the fourth team to be eliminated from this World Cup, although they still have to stay here and play their third group match, and

it's their worst-ever performance after two defeats since the 1958 World Cup in Sweden. That's the last time , years ago back to England getting

knocked out of the group stage. (Inaudible) even then. They lost their first two games. Paula.

NEWTON: You know, in terms of what we're going to end up with after this knock out round, is it starting to shape up with a surprise in terms of - I

mean, gosh, all you have to do is look at Costa Rica, don't you to say it's a bit of a surprise. But is it a bit of a shocker what's happened all in

all?

THOMAS: It's too early to give you the complete picture, but, yes, Costa Rica won - and not the only one of the surprise stories of this World Cup.

We know it's heading out to be one of the most thrilling World Cups. I told you that that 1958 statistic - that's the last time when this

tournament scored as many goals it has at this stage, or certainly that was the case a couple of days ago. Costa Rica are one success story. The

number of teams doing well from the CONCACAF region - the North American and Caribbean region. Those teams are often weaker.

Let's show you what happened in that game against Italy. Mario Balloteli the Italy striker promising to help England out. They had to win to get

them hope of qualifying. But they were watching the goal from Bryan Ruiz here. That was the one goal of the game very well taken. Costa Rica were

in this group of death, Paula, with Uruguay, England and Italy who between them have won seven of the 19 World Cup titles ever to be won. And yet,

the one team has never won a World Cup for Costa Rica, playing in the World Cup finals for only the fourth time in their history are the ones with

guaranteed qualification. England are out and Uruguay and Italy still sweating on their place in the last 16. Absolutely unbelievable,

completely unpredictable. Congratulations to Costa Rica.

NEWTON: Absolutely. And whoever did put money done on that is a happy person today, huh, Alex? We will continue to watch this very unpredictable

World Cup unfold. Thanks so much. Appreciate it, Alex. Now, we've heard the latest on the fighting in Iraq. After the break - the victims fleeing

for their lives into the unknown.

(COMMERCIAL BREAK)

NEWTON: Welcome back, I'm Paula Newton and these are the top news headlines we're following this hour. New fighting has been reported in

Iraq along the Syrian border. The Iraqi government says security forces killed 17 suspected ISIS militants today. It happened near the border

crossing some 500 kilometers west of Baghdad.

Ukrainian President Petro Poroshenko has declared a unilateral cease fire for all of next week. He had said it would just be for one day. Now in a

statement, Mr. Poroshenko warned separatists to put down their weapons by June 27th or quote, "be destroyed."

The United States says that Thailand and Qatar are not doing enough to fight human trafficking. They are now both in the tiers three category

alongside countries such as the Central African Republic, Syria and North Korea. The U.S. also said it had its own problems fighting trafficking

despite being a tier one country.

Five men who were wrongfully convicted in the brutal rape of a jogger in New York's Central Park in 1999, are to be paid $40 million by the City.

The five teenagers then aged between 14 and 16, were coerced amid a public uproar into making incriminating statements and they were then convicted in

1990. Now, the victim, a 28-year-old investment banker, was severely beaten, raped and left for dead in a bush. She has no memory of the

attack.

A huge upset at the World Cup as we were telling you. Costa Rica beat Italy Friday to advance to the round of 16. Now the final score was just

1-nil. Costa Rica's win also eliminates England. Right now, France is beating Switzerland 5-nil.

It's a somber milestone. More than 50 million people have been forced to flee their homes. It's the most at any time since World War II. Now, much

of the rise is due to the ongoing war in Syria, which has displaced a million people. U.N. puts the number of Syrians who have fled to Turkey at

just over 783,000. More than a million more have fled to Lebanon, and Jordan has taken in almost 600,000, more than 225,000 crossed into Iraq and

there are almost 138,000 Syrians in Egypt. Now, all told, more than 10 percent of Syria's population has left the country.

Now the U.N. Refugee Agency says the growing global crisis is stretching aid budgets and putting a strain on countries taking refugees. CNN's Max

Foster asked the U.N. high commissioner for refugees to describe the scale of the problem.

(BEGIN VIDEOCLIP)

ANTONIO GUTTERRES, U.N. HIGH COMMISSIONER FOR REFUGEES: I think that what we are facing is a situation in which peace is dangerously in deficit in

today's world. We are witnessing a multiplication of conflicts. Even since last year - we have saw Sudan, South African Republic, Ukraine, now

Iraq. It is obvious that the enormous suffering of the people needs a solution, and that solution is not humanitarian.

We can do everything we are able to do to support people, to assist people in cooperation with the humanitarian community with states, but the

solution is political. What we need is the international community to come together to overcome divisions, contradictions and to be able to stop this

never-ending multiplication of conflicts and at the same time to address also the protracted situations of the past like Afghanistan or Somalia or

the Democratic Republic of Congo that have forced people to be in exile for decades and decades.

MAX FOSTER, CNN INTERNATIONAL ANCHOR AND CNN'S ROYAL CORRESPONDENT: Have the humanitarian agencies reached the limit of what they're able to do?

GUTTERRES: I think that we have two kinds of problems. First, as the numbers are growing enormously and the people in need is bigger, not only

numbers but in the intensity of their suffering, we face a dramatic lack of financial resources. But also, because of the evolving nature of conflict,

we have sometimes problems to have access to populations in need. Sometimes governments do not allow to us to go there, sometimes we have

multiplicity factors - government forces and ethnic militias, politic militias, religious militias, bandits, creating a situation of

unpredictability in relation to the security for humanitarian actors (ph). That really does not allow them to reach populations in need in an

effective way.

FOSTER: What you're saying is that the Security Council actually is the solution here. If they can move to resolve conflicts, then you might be

able to cope with the problem that you're facing right now? The problem you've got of course with the Security Council is that everything is

blocked because - particularly at the moment. Russia, for example with the problems in Ukraine, can't agree with the West.

GUTTERRES: I think that obviously one of the problems is the lack of capacity of the Security Council to come together in relation to some major

conflicts, but it's not only the Security Council. It's important to mobilize regional organizations, for instance, in South Sudan. It's the

egart (ph) that is the key for the solution. It's important to have those countries that have a leverage in relation to the parties who are conflict

- making them come together to force the parties to the conflict to make peace. I remember how it was possible to intervene in Kosovo and Bosnia,

in Istanbul (ph). Now, power relations became unclear. And so, as I said, things happen and the international community doesn't have the

capacity to stop conflicts and put an end to this nonsense of never-ending displacements.

(END VIDEOCLIP)

NEWTON: Now if Facebook's Mark Zuckerberg offered you a half a billion dollars for your company, would you take it? One of the many documented

dilemmas which face this Biz Stone, Twitter's co-founder. We'll have more from him after the break.

(COMMERCIAL BREAK)

NEWTON: Earlier in the show we heard from the co-founder of Twitter on the difficult topic of free speech. Now, Biz Stone is in London launching his

new book which sheds light on the early days of Twitter. "Things a Little Bird Told Me" includes the moment he literally made up a price when

Facebook's Mark Zuckerberg tried to buy him up.

(BEGIN VIDEOCLIP)

STONE: We talked to him, it came to the point where he said, you know, I don't like to talk about numbers, but you say a number, I'll say yes or no.

And Evan looked at me, and then he looked at Mark, then he said $500- million-dollars? And Mark said that's a big number. And I said you said you'd say yes or no. And he did end up coming up with a number and - which

was shocking. And at that point we then had to sort of very respectfully say that we weren't ready to sell the company, and we really felt like we

had just gotten started and - so that was awkward.

DOS SANTOS: I noticed one big lessons that you make very clear in this book here - make sure you're serious about things -

STONE: Yes.

DOS SANTOS: -- before putting things on the table.

STONE: Well it's actually something like that because once you have an offer, you have a fiduciary responsibility to your board and your other

shareholders to, you know, to discuss it and to seriously consider it, even though we really didn't want to sell the company. So, you don't want to

get yourself in that position unless you're serious about it.

DOS SANTOS: Are you surprised by how big Twitter's become?

STONE: Yes, I am. You know, I've had - I've had several years to start to get used to it. At first it was just fun, and now it's everywhere, you

know. I can't - you know, I can't even walk around London without seeing the little bird I drew, you know, or a hashtag or anything.

DOS SANTOS: Will Twitter ever become obsolete? This is the big question of our age with things like Facebook and Twitter (inaudible).

STONE: I think Twitter is a company of enduring value. I think there's value that will - that will continue for several decades because there's

nothing like it. I mean, this one-to-many immediate broadcast mechanism. Every newsroom I walk into, they have Twitter feeds up, you know, it's an

important information tool, and the world thrives on information. This is how the world works. So, I think it's a company of really enduring value.

(END VIDEOCLIP)

NEWTON: Now, to the curious copyright case of Sherlock Holmes. A court in the United States has ruled that the characters in Arthur Conan Doyle's

books are no longer confined to 221B Baker Street, but are now in the public domain. The court battle between Conan Doyle's estate and Leslie

Klinger has ended in victory for the Holmes expert. Leslie joins me now from Los Angeles. You know, I have to get your reaction as best as you can

give it to us in terms of what this means for you and what this means for everyone else who wanted Sherlock Holmes to be in that public domain?

LESLIE KLINGER, AUTHOR: What it means is that people who want to create new stories about Sherlock Holmes using the character of Holmes and Watson,

using the elements that appear in the 50 stories - out of the 60 - 50 to 60 that are in the public domain, are free to do so. The Estate was arguing

that because there are ten stories remaining in copyright, the character wasn't complete in some way until the last story was written. The court

essentially said that's nonsense. Public domain would be meaningless because you could just keep extending the copyright of the earliest stories

by continuing to write new ones.

NEWTON: And explain to us, some of these things that we love so much that are cliche about Sherlock Holmes. They weren't in the original, were they?

I mean, they've been kind of - he's kind of been a compilation through the decades.

KLINGER: Yes, the iconic Sherlock Holmes is the magnifying glass - that's in the stories. The deer stalker hat - that hat with sort of two bills -

that's only in one of the stories. The famous curved pipe - that's not in any of the stories. So, yes, there have been accretions from stage, movies

and the like that have built up the character, so that it's hard to even say what are the elements that appear exclusively in the public domain

stories. There's this whole public idea of Sherlock Holmes.

NEWTON: And in terms of this being such a beloved character, what will it allow you and others to do with Sherlock Holmes?

KLINGER: Anything --

NEWTON: -- besides Robert Downey, Jr. who I know has his own version (LAUGHTER) of Sherlock Holmes.

KLINGER: Yes, well there have been many versions. I mean look right now, we have the Robert Downey, Jr. films, we have CBS TV's "Elementary," we

have the BBC's "Sherlock" - these are all re-imaginings of the characters in different situations, and there've been hundreds and hundreds like that.

In the past, they've had to go hat in hand to the Estate and say 'please may we?' And of course the Estates has been an arbiter, saying, no, we

don't like that, yes, we do like that. Now, those creators will be able to do what they like as long as they don't use elements that appear

exclusively in the remaining ten stories.

NEWTON: I mean, do you think that this will make eventually Sherlock Holmes even more popular in terms of people adding on it? And I have to

bring into comparison a character - a modern-day character that we know, someone like Harry Potter. I mean, do you think that these kinds of

characters should be allowed to evolve that way in movies, on TV, in books.

KLINGER: Yes, I do. I think that what's driving this is people love the original stories, they want more. Conan Doyle has been dead for 84 years,

he can't give us anymore so new creators want to write their own things. Now, I'm not all - I'm not arguing that copyright should be abolished.

That's not what we said at all here. What we said was once the stories pass into the public domain, you don't get a continuing license fee just

because some of the stories are not in the public domain.

NEWTON: Right. You're just saying it shouldn't happen in perpetuity. It should actually end at some point.

KLINGER: Correct.

NEWTON: And the characters should live on otherwise.

KLINGER: Yes, and we basically said the Estate should follow the same rules as everybody else instead of using their economic position to bully

creators into paying a license fee.

NEWTON: Well, we'll wait to see what Sherlock Holmes morphs into next, and thanks so much for sharing this story with us. Appreciate it.

KLINGER: Thank you.

NEWTON: Now, after the break, a dire and deadly situation on the coast of Bulgaria. Around a dozen people have been killed after massive flooding.

We'll bring you an update (inaudible).

(COMMERCIAL BREAK)

NEWTON: At least 11 people have been killed in flooding in Bulgaria. Massive flash floods and mud slides have hit the coastal city Varna. Jenny

Harrison is at the CNN International Weather Center. She's tracking this for us. I mean, you have - you showed us throughout the week that wall of

water sweeping through Europe, and unfortunately this is what's happened in Bulgaria.

JENNY HARRISON, WEATHER ANCHOR FOR CNN INTERNATIONAL: Yes, it is as you say. In fact, the last couple of days, Paula, we've had quite a few storm

reports coming out of the entire region across the south as these storms had worked their way from west to east. This is showing the area of low

pressure as we're going into the start of the week into Friday, heading across in to the Black Sea. And of course, very intense area of low

pressure. But at the same time, because this time of year we've got this cool air still in place across northern and central Europe, and in the

south, we've got this very moist air, obviously warm and most and all that energy coming off the Mediterranean. So, this has just been feeding these

thunderstorms as they worked across the region, and in particular, the situation in Varna.

Let's have a look again at the video because it was just a tremendous amount of rainfall that came down in a very, very short space of time.

More than twice the monthly average of June, and at times the waters were over a meter in height, and it was a case of flash floods, because the

power and the amount of water - you can just see what has happened with this surge of water that came through the city. People had to rescue (ph)

from their cars -- not surprising when you see the aftermath -- that people took to the roofs of their houses because the flood water was rising so

very rapidly, and now you can see that it's going to be this awful time when they've got so much to clear up. And of course as well as the people

who were killed in this or the people who were quite badly injured. And also, several people are still missing as well in the aftermath of all

this.

So, let me just talk a little bit again about how much rain came down in that short space of time. This is the amount - 109 millimeters, 46

millimeters is the average in June. So, straightway you get the idea, and apparently some of the rain that came through some of the storm drains were

clogged and that obviously didn't help in a situation where the water managing to run off very quickly. Just a couple of still images to show

you because I think this is when you can see the cars just piled up. And you get an idea of the power of that water that it took to actually result

in this. So, it's not understandably but still sadly not surprising to hear that people actually lost their lives in that.

There's more rain in the forecast. The system itself working its way east, I'd say by the end of this as we head to Sunday, it's really just clear

and dryer with that system now pretty much out of the picture. But of course throughout the week we've had reports there was a waterspout over

the coast of Italy, then there's one you can see here off the coast of Greece. We've had large, damaging hail and also we've had a tornado -

we've got some pictures of that to show you as well, because this tornado was spotted just in the suburbs outside Istanbul. Again, thankfully with

this we didn't have any reports of injury, not a huge amount of damage. But you can see very clearly that tornado on the ground. And of course a

couple of days ago, it was literally a couple of waterspouts, so looking like that but forming over water.

In terms of what's going to happen next, you can see some very unsettled weather conditions still in the southeast. Also a bit of a disturbance in

the southwest. The northwest of Europe is actually one of the better places to be throughout the weekend, certainly the first part with high

pressure in control. But widely unsettled across these eastern areas. More of those popup afternoon thunderstorms. Quite a bit of rain also

pushing in to the southwest. So, temperatures still warm in Madrid at 29, but not as hot as it's been, 26 in Rome, very nice in London and Paris with

a high of 23. Paula.

NEWTON: Should be a nice weekend there at least and we'll wait for that weather - bad weather - to clear out of Europe by Sunday as you say. Have

a great weekend, Jenny. Nice to see you this week.

HARRISON: You too, Paula, thank you.

NEWTON: Now, an ugly scene at the Toronto - I'm sorry - at the Tokyo Metropolitan Assembly is sparking outrage and highlighting what many say is

a persistent and deep-rooted problem in Japan, and that's sexual harassment. Will Ripley has the details.

AYAKA SHIOMURA, ASSEMBLY MEMBER: (Speaking in Japanese.)

WILL RIPLEY, TOKYO-BASED CNN CORRESPONDENT: A jaw-dropping outburst during this meeting of the Tokyo Metropolitan Assembly. Visibly shaken, assembly

member Ayaka Shiomura struggles to keep her composure. Male members from an opposing part are heard heckling her off camera as she calls for more

services for women. "You'd better get married quickly," one man shouts. Shiomura says another even yelled, "Can you even bear a child?"

"Heckles kept coming, one after another," she says. Shiomura finished the speech with tears in her eyes and her voice breaking. She later posted on

Facebook, "It was like a punch in the gut." "I want whoever did this to come forward," she says. The outburst is fueling outrage on the streets of

Tokyo.

Male, TRANSLATED BY RIPLEY: I couldn't believe how the men responded," says this man.

Female: TRANSLATED BY RIPLEY: This woman says, "I'm so embarrassed by the lack of decency among Japanese men.

RIPLEY: Japanese Prime Minister Shinzo Abe says women in the workforce are underutilized and underpaid. Here in Japan women earn 30 percent less than

men. Abe has a plan called 'Womenomics' to equalize giant gender gaps in pay and power. But even in his own central government, women hold just 3

percent of management jobs. Abe wants 30 percent by the 2020 Tokyo Olympics.

These heckles about getting married and having children are a jarring reminder of a widely-held fear in Japan. A fear that fertility rates will

fall further if more women focus less on family on more on career, a social stigma so strong, not even powerful women elected into office are immune.

Will Ripley, CNN Tokyo.

(END VIDEOCLIP)

NEWTON: We'll be back with more "Quest Means Business" right after the break.

(COMMERCIAL BREAK)

NEWTON: Now we have a final score in the game between France and Switzerland. Listen up. France has raced to an early lead in the first

half and the Swiss scored twice late in the game to get on the scoreboard. But get this - France's five goals were way too much to overcome. The

final from Brazil - France 5, Switzerland 2. I mean, Switzerland definitely didn't want to be neutral in this game, so they tried to get

those last two goals in there but - five goals. Just incredible.

Now, we saw a huge upset in the day's earlier game. Costa Rica beat Italy to advance to the round of 16. Incredible - only their fourth showing in

the World Cup. The score was 1-nil. Costa Rica goes through to the next round of 16. But their win also eliminates England, who lost to Uruguay on

Thursday. Quest would not call that a "Profitable Moment" for England. And that is "Quest Means Business." I'm Paula Newton in New York. And

Richard will be back here on Monday. In the meantime, enjoy your weekend.

END