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Apple to Open New Research Firm in India; Poll: Trump, Clinton Lead in South Carolina; Saudi Arabia, Russia to Freeze Oil Production; Boutros Boutros-Ghali Dies at 93; Sarkozy Under Formal Investigation; Anglo American Announces $5.5 billion Loss; Venezuela Under Pressure Over Oil; Mahindra: Modi Needs to Communicate Better; Startup Give Mumbai Taxis a Makeover; AirAsia CEO: Cheaper Oil a Boon for Airlines; Obama: Agree to Encourage Entrepreneurship; President Obama to take Questions on Supreme Court Vacancy

Aired February 16, 2016 - 16:00:00   ET



RICHARD QUEST, QUEST MEANS BUSINESS: Markets up more than 200 points. It must be the "sports illustrated" swim wear models who are causing such a

rollicking rally in the Dow Jones. And there, you have a gavel -- oh, listen to that gavel. A strong robust gavel bringing trading to a close on

Tuesday, it is the 16th of February.


QUEST: Tonight, freezing the tide of oil. Saudi Arabia and Russia agree to cap production if and only if others follow suit. We ask is that likely.

Also Trump stays in control in the Republican race. New CNN poll numbers have just been released. And breakthrough or breakdown? Ukraine's Economy

Minister who resigned last week gives his assessment of today's confidence vote.


QUEST: Live, from Mumbai, I'm Richard Quest where of course I mean business.


QUEST: And a very good evening to you. Before we get to our business agenda, let's have some breaking news and it concerns the latest poll

numbers in the U.S. Presidential race.


QUEST: The latest poll has just literally now been released. It's a CNN/RCO poll and let me show you, on the Republican side, Donald Trump has a 16

point lead over Ted Cruz. 38% of likely Republican voters said they would pick Mr. Trump as their party's nominee. A 16-point lead over Cruz.

To the Democrat side, Hillary Clinton is leading Bernie Sanders, 56% to 38%. The former secretary of state lost to Mr. Sanders in New Hampshire.

She won in Iowa by the narrowest of margins. We'll have the full analysis on those poll numbers with Dana Bash in just a short period from now. We'll

get to those details.


QUEST: But Trump and Clinton are the leaders of the latest poll numbers and South Carolina, just a few days, four days, away.

And so to our leading business story tonight on Quest Means Business, and it is oil once again which tops the agenda. And the prospect in some shape

or form of a freeze in the amount of oil being produced by three of the world's leading producers.


QUEST: Saudi Arabia, Russia, Qatar and Venezuela, four if you add in Qatar, have agreed to freeze output at January's levels. And here's the tag, if

and only if others follow suit. Oil prices rose in anticipation of the meeting that took place. They fell after the ministers announced the deal.


QUEST: Now, a production -- a production freeze, not a cut, a production freeze would be a major reversal for the position taken by Saudi Arabia so



QUEST: And it would do so for the following reason. First of all, it shows that the pain has become acute for oil producers in the Gulf who are now

suffering severe budget deficits and are actually now having to cut back on many of their spending plans. Also, it won't fix the amount because it's a

freeze, not a cut. So there will still be an oversupply in the market. And then you add in Iran and Iraq. Iran, just coming back into the market.

Producing ever more oil. With a threat to turn on the taps and Iraq ramping up production also.


QUEST: CNN's money emerging markets editor is John Defterios, he's staying up late for us tonight as we thank him for that.

Johnny D., so we have this freeze. It's not a cut and it depends on everybody else joining in. Your honest opinion, does it stand any chance,

does this horse stand any chance of running a race?

JOHN DEFTERIOS, CNN MONEY EMERGING MARKETS EDITOR: Well, the track record within OPEC and non-OPEC for a collaboration Richard is not very good. We

call it the big freeze, I would suggest it's the big let down and I'll tell you why.

The expectations were high. The delivery low. Also, what I find a little bit interesting though is that there's no panic in the market. It's not $35

a barrel where we were on Monday but it's not the 12 year low that we saw last week of $27 for North Sea Brent. It's right in the middle.



DEFTERIOS: So I would imagine, those, four players that sat around the table in Doha have to be pretty satisfied that perhaps they found a new

floor for the market. But what is the reality? You laid out some of the details there Richard. What we're talking about, a freeze in January, is a

freeze at all-time highs for Saudi Arabia, Russia, the United Arab Emirates, Kuwait and Iraq. So it's not a big sacrifice here by any of those

players going forward.

Ali Al-Naimi, the Saudi Arabian Minister seems to have gotten his way. He lays out his strategy. Let's take a quick listen.

ALI AL-NAIMI, SAUDI ARABIAN MINISTER: We don't want significant gyrations in prices. We don't want reduction in supply. We want to meet demand and

we want a stable oil price.


DEFTERIOS: Very interesting, Richard what he had to say at the end here. He wants a stable oil price, not a higher price. And this is where

the (inaudible) in the ranks will happen within OPEC itself. Clearly, not what Venezuela, Nigeria, Angola, I can give you a long list of countries,

Indonesia, wanted from this meeting. They would like to see a faster recovery in the second half of 2016.

And here's the bet that OPEC is making right now Richard. The IEA is suggesting overproduction in the first half of the year, 1.75 million

barrels a day. OPEC's looking at the estimates for demand growth of 1.2. And expectations that another 600,000 barrels a day will fall off in 2016.

That would be a near balance in the market. But as you know, we've talked about it face-to-face actually in Davos here in the Middle East, the

economy is slowing down. So you can't bet on that big demand number holding forth, which is reasonable demand. So I think this is very hard to deliver.

You might want to call it the great holding pattern until June and the next OPEC meeting. If there is a panic, they'll do something about it. Right

now this seems to have stabilized the market and the good news is Russia and Saudi Arabia sat eye to eye across the table. They're adversaries, they

don't have a lot trust in each other, but they agreed at least to try to get a freeze going forward.

QUEST: Yes, but John, what you're talking about here is sort of downing men agreeing to launch the lifeboat, aren't you? I mean my friend is -- my

enemy is my friend because in this case, it could help me stave off financial ruin.

DEFTERIOS: That's a very good line there, Mr. Quest. In fact I don't disagree with you.

The expectations were that they would come up with a concrete road map at least as opposed to just saying let's meet for three hours in Doha because

the Qatari minister, who is also the rotating President of OPEC right now, and the Venezuelans who are quite desperate for a deal are forcing us to

sit around the table to try to come up with something.

Instead, they met for a very brief three-hour window, decided to go with the freeze strategy. And then one source that I spoke to that sat on the

meetings from the - a Gulf state, was suggesting it is, as you suggest in your lead-in, contingent on cooperation from other players, specifically

Iraq and Iran.

Iraq is at a near record high, and the Iranian minister told me on a number of different occasions, Richard, after four years of strangling under

sanctions, they're in no mood to freeze or cut back. They've added 300,000 barrels a day, they're going to add another 700,000 by the end of the year.

That's why I don't think this deal's a starter, I don't see it going forward from this point after this.

QUEST: And you've certainly been watching more oil than most. John Defterios, Johnny D., who is in Abu Dhabi for us tonight. Thank you.

There is a great deal more on oil. CNNmoney/oil is where you can find, is where you can find our special coverage on this

leading story at the moment.


QUEST: The markets in the United States, well, here in India, i have to say, it's so steamy here in India tonight in Mumbai, even as I'm talking,

me glasses are steaming up. I wonder if it's those swimwear models that have got me again. No really it's absolutely steaming hot here. And it's

the best part of good lord, it's the best part of 20 to 3:00 in the morning.

But in New York, it was a very strong session on Wall Street, with the Dow Jones Industrials gaining 222 points. A catch-up because there was no

trading for President's Day on the Monday.

So to the poll numbers that I was telling you about. The new CNN ORC poll, which has Trump leading by 16 points and Hillary Clinton leading on the

Democratic side. Stephen Collinson is a senior reporter for CNN politics, joins me now.


QUEST: Stephen, I guess when you, you know, both leading candidates were leading before this poll and they're leading after this poll. So what do

you extrapolate from it?


STEPHEN COLLINSON, CNN POLITICAL REPORTER: I think, Richard, this is great news for Donald Trump. The Republican primary in South Carolina is on

Saturday. It would be a major upset now if Donald Trump doesn't win that primary.


COLLINSON: There's not much time left for the things to go south in terms of his politics. I think what it also shows us is that the Republican

establishment, represented by Marco Rubio, Jeb Bush, and John Kasich, is still no nearer stopping Trump. South Carolina is hugely important for

Republicans. It's a state that's chosen the Republican nominee in the last -- ever since 1980, apart from the last time around, 2012, and it's the

first in the South primary. The South is hugely important to the Republican coalition. It's really the heartland of the Republican party.


COLLINSON: If Trump wins here, he has huge credibility going forward.

QUEST: That was going to be my question. If Trump wins South Carolina, I'm not saying an inevitability about it because there is always -- there's the

Super Tuesday one, Super Tuesday two, but he becomes, clearly, more nominee electable.


COLLINSON: Certainly, and South Carolina is a barometer for March 1st. Where we have Super Tuesday as you said when there's a whole wave of states

across the country, including in the South.


COLLINSON: So if Trump can win South Carolina, it's a good bet that he can do well in other states like Alabama, for example, Arkansas. At some point,

if the establishment doesn't coalesce, if the establishment doesn't manage to put forward one single candidate from the three of them that are

currently sort of fragmenting the establishment vote, Trump's could get so far ahead that it's going to be impossible to catch him up.

QUEST: And very briefly, on the Democrat front - Democratic front, Hillary Clinton, Bernie Sanders, is this where Mr. Sanders' run for the nomination

starts to fade?


COLLINSON: It could well be Richard. Let's remember the Democrats have another week after the Republican primary before they hold their South

Carolina primary.


COLLINSON: The theory about Bernie Sanders is, okay, he can win in Iowa, he can win in New Hampshire, in very white non-diverse states. But when we get

to the South, the African-American vote becomes important and Hillary Clinton right now has a lock on it.


COLLINSON: In this poll, she has 65% of the African-American Democratic vote. If that holds true throughout the South, it's very difficult for

Bernie Sanders to win the election. But remember, there's still a week after the Republicans, before the Democrats come out in South Carolina.

Sanders does have time to at least eat into that lead and make it a less credible, less sort of convincing victory that Clinton really needs because

her campaign is wobbling right now.

QUEST: Live pictures there of Hillary Clinton talking in Harlem at the moment. Obviously trying to solidify different aspects of the vote.

Stephen Collinson, thank you for that.

COLLINSON: Thank you, Richard.

QUEST: Now, President Obama will be speaking at the end of the ASEAN Nations meeting. He's expected to address all issues, everything from trade

to inter-Asian relations to terrorism. When the President speaks, it does tend to run late, but when he does speak, we will bring that to you.

Ukraine and the vote of confidence that took place. It's a question of if it was a breakthrough or a complete breakdown.


QUEST: In the hurly-burly world of Ukrainian politics, we'll be talking about that. It's "Quest Means Business" we're live in Mumbai.




QUEST: Welcome back to "Quest Means Business" in Mumbai. Ukraine's Prime Minister has survived a vote of no confidence in the Ukrainian parliament.


QUEST: Now, that is no mean feat as you'll be well aware. Take a look at the pictures of the protest. A motion in parliament to bring down the

(inaudible) failed to win enough support even though the President was also calling on him to go. Protesters outside the parliament lent their voices

to the demand to get rid of the Prime Minister.

UNIDENTIFIED MALE: (As translated) It is high time to kick them out with a broom. How long will they torture us? Did even one of them say how a

pensioner can survive nowadays with a pension of 1,500 (Hryvnia)? Did at least one of them say? And they are lying. Staring like a stuck pig and

lying. How long will it last? People are starving. Children are dying.


QUEST: The Ukrainian economy is in catastrophic condition. That much we've talked about on many occasions on this program.


QUEST: Just look at the numbers over the last couple of days. The currency, the Hryvnia, has been weakening dramatically against the U.S. dollar, it's

down 10% already this year. And last week the IMF warned Kiev its $17.5 bailout is at risk if it fails to get serious about stamping out



QUEST: The former Ukrainian economy minister resigned just two weeks ago. He spoke to Paula Newton to give some perspective on what is happening in

Ukraine and why he decided it was time to head out.


AIVARAS, ABROMAVICIUS, FORMER UKRAINIAN ECONOMY MINISTER: Well, it's never boring in Ukrainian politics especially it's never boring in Ukrainian

Parliament. So after hours of abusive language and bad words in the possession of the cavalry of individual members of parliament, they

basically failed to kick the government out. There was basically a miss by about 30 votes. And as you just said, obviously, this will lead to more

tensions between the parliament and the government. But yet it shows that government needs to be reshuffled.

This was an opportunity really to regain some of the lost trust in the government, you know, and overall in the parliament's work, you know, in

the eyes of population but this opportunity was not yet necessarily used.

Yet some good news today as well. Privatization law was voted in the parliament that is great news, paving the way for transparent and

professional privatization. And the general prosecutor who failed to really lead the effort in the general prosecutors also served to put you know some

important trials on track. He signed a resignation which is what most of the people in Ukraine were expecting him to do a long time ago.

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: You know, Mr. (inaudible) has been accused of many things. There hasn't been any proof of any of it.

What do you think is his long game here and also importantly Mr. Barashanko's long view on what is to happen?

ABROMAVICIOUS: Well, this is a crisis of trust and a crisis of values. And what I was proposing after my resignation is that we change the government

in such a way that we bring in people with untainted reputation, that have high sort of a trust in them within this society. And that still can be

done. As they said, you know, reshuffling the cabinet of ministers is certainly imminent. And as I said already before, we are either two steps

away from the breakthrough or two steps away from the breakdown. And it is going to be very, very important to see who those people that would leave

the cabinet of ministers and who would join in the coming days to really understand in which direction we are going.


QUEST: That's the situation in Ukraine. To the European markets and how they transmitted all the nerves of the market.


QUEST: And It really was oil that was the moving factor. Once again, the slide in oil, even though there was the oil freeze agreement. That pushed

the European markets into the red. The DAX in Frankfurt fell after new data showed German business confidence fell this month. It comes on the back of

the GDP, the weak fourth quarter GDP numbers in Germany as well. It was London that booked back to the trend. It had modest gains when all was said

and done.


QUEST: India has big ambitions, it has powerful prospects and it has large companies ready to go out and get the opportunities.



QUEST: We'll look at some of the local start-ups hoping to ride the wave. And the large companies that are making progress, "Quest Means Business" in




QUEST: Now, here's a funny thing. There's a new start-up in India. It's called Apple. Yep, Apple is opening its first research center in India. A

start-up with a difference. When the large tech company arrives here, it will find it is the new kid on the block and it's a new kid when it comes

to Indian start-ups.

As our Mumbai correspondent Mallika Kapoor tells us.


MALLIKA KAPOOR, CNN MUMBAI CORRESPONDENT: A tap on the phone and I'm off in a Ola, India's largest ride sharing app. It works just like Uber except

it's Indian. It's in 102 cities, gets 1 million bookings a day and has a valuation of over $5 billion. It's no surprise Ola is the poster child of

India's start-up revolution. We visit its headquarters in Bangalore, a city once known as the call center capital of the world, now called India's

Silicon Valley.

ANKIT BHATI, OLA CO-FOUNDER: Every programmer, every good designer essentially makes his way to Bangalore once in his life and that's the kind

of gravity that Bangalore has.

KAPPOR: It's home to hundreds of ambitious start-ups, and they're attracting millions of dollars from global investors excited about their

potential. Of India's 1.3 billion population, only 250 million are online. That number's expected to double, even triple in the next decade. And as

that number rises, so will business for internet start-ups.

We're going to do something very Indian now and get ourselves an auto?


KAPOOR: Ola is one of India's fastest growing companies. New services, like carpools and linking these autos to its apps, gives it a much bigger market

share than its competitors. Plus, there's a local touch. Its app comes in 11 local languages and consumers can pay in cash. All this is slowly

changing India.

A lot of young people here don't feel the need to buy a car anymore.

UNIDENTIFIED MALE: Right so that's where we're headed. At some point, we were always thinking we'll probably stop the second car purchase but the

eye was always on the fact that how do we stop a consumer from buying a car.

KAPOOR: If this startup has its way, India's millennial may want to buy a smart phone instead so they'll always have a car quite literally at their


Mallika Kapoor, CNN, Bangalore.


QUEST: So the start-up scene is in rude good health. However, when it comes to the internet and the regulation there, it is anything but. Net

neutrality, it is not the sexiest of subjects and it's bored us on a few occasions on Quest Means Business. Here in India, net neutrality, the idea

that everyone using the net is equal, here in India, it's also become something of a comedy game.



UNIDENTIFIED MALE: So you want to send a naked picture to strangers on Snap Chat?

UNIDENTIFIED MALE: Buy the Snap Chat pack.

UNIDENTIFIED MALE: Want to show people a picture of (inaudible) and hashtag the hell out of it on Instagram?

UNIDENTIFIED MALE: Buy the Instagram pack.

UNIDENTIFIED MALE: Want to use BBM, buy --

UNIDENTIFIED MALE: Why are you still on BBM?


QUEST: Rohan Joshi is from the AIB Comedy Group.


QUEST: It's good to see you sir.

JOSHI, It's good to be here.

QUEST: Thank you for coming here at this (inaudible).

JOSHI: It's absolutely fine. If you asked me to be here at 9:00 in the morning, that would have been a problem. My wildly lifestyle means that

3:00 in the morning, perfect time for an interview.

QUEST: Excellent. The whole question of comedy, stand-up comedy here in India, that you are bringing to it, is quite different, quite unique.

JOSHI: Yes, it is. Well first of all be specific, standup comedy in English. We've had standup comedy in Indian languages for centuries, but

in English, yes, quite unique, quite different and all (inaudible) of the internet actually and entirely because of the internet. Because the

audiences are small. All of that. We don't have the budget to market ourselves and we just went out there and put ourselves online.

QUEST: Were you surprised at how it took off?

JOSHI: I was surprised at the pace at which it took off. The fact that it's here, not so surprising. The fact that it took off as fast and as radically

as it did, yes, it was kind of surprising. Meteoric a little bit..

QUEST: All right, meteoric. Give me an idea of what you do.

JOSHI: Well an idea of what we do? We do live stand-up comedy in auditoriums, we do videos on YouTube.

QUEST: But your content, the content is satirical.

JOSHI: It is satirical.

QUEST: (inaudible) Things like net neutrality which frankly is one of the most boring subjects, important but boring.

JOSHI: Of course, but the thing is we thought that as well and then we saw weirdly enough John Oliver do it in America, and he did - he took on the

subject and the FCC had to make moves on the basis of that. And when the debate sort of came here, we went hang on, we can do something about that,

and we did.

QUEST: Do you think you -- can you credit yourself and the anti-Zuckerberg campaign here, the - the anti --

JOSHI: We can take maybe 4% of the credit.

QUEST: 4%? You're sure?

JOSHI: I'm sure, let's say 3.5% on the side of caution. But because there's a very dedicated team of the guys over at Save the Internet which is a

talented bunch of lawyers and policymakers and journalists and a bunch of people who are very, very interested more as internet users as people who

believe we should have access to the internet.

QUEST: Right, tell us a joke.

JOSHI: All right, why you can't - you've had ten minutes of Donald Trump earlier, I saw the show, there's nothing I can say that would match

anything he said.

QUEST: That is a - that is a -

JOSHI: -- I'm not competing.

QUEST: That is a cheap shot.

JOSHI: that - no, it is not. No cheap shot is also his nickname weirdly enough. But never mind, long story.

QUEST: Excellent. Oh that's just crude. That's another point about you. You're vulgar.

JOSHI: Well yes, I mean -- if you mean that as a compliment, then yes.

QUEST: No, you're vulgar bordering on offensive in your humor.

JOSHI: Yes, yes we are. And I think that comes, again, with the internet. Because if you look at television in India, heavily regulated, heavily


QUEST: How - come on, you say it's heavily regulated but there's 100 something news channels broadcasting everything but blood and gore and live

heart surgery.

JOSHI: I said it was regulated, I didn't say it was a sensible regulation. I didn't -- all I said was it was regulated. Now you're trying to put

words in my mouth. So it is heavily regulated in terms of what you can and cannot say. But we got online and people realized that we were speaking in

a voice that was not as heavily regulated. Because let's face it most people are vulgar in conversation. And we only conversation vulgar is what

I like to say. And I think that just -- that's the sort of no bull crap approach, just sort of goes well with people --

QUEST: I'm not sure what you just said but whatever you said don't repeat it.

JOSHI: I won't, I won't, I promise.

QUEST: Conversationally vulgar.

JOSHI: Yes, conversationally vulgar. That's the word.

QUEST: Charming. Thank you very much indeed.

JOSHI: My pleasure.

QUEST: Conversationally vulgar is what we are. No, we are not. That is what he is. Rohan Joshi joining me this evening, and it is 3:00 o'clock in the

morning. Half way through Quest Means Business tonight, we thank you for joining us. When we come back, the commodities market, has been -- it's not

been conversationally vulgar, it's just been downright indigestion making.


QUEST: We'll report that for you in a second.





RICHARD QUEST, CNN ANCHOR: Hello, I'm Richard Quest in Mumbai. More pressing business in just a moment. When the Chief Executive of AirAsia

tells me low oil prices are creating a unique time in aviation. And I go for a ride in a Mumbai taxi that has been fest tuned in a canvas that's

quite different. And all of that, but this is CNN and on this network the news always comes first.

Donald Trump is heading into the crucial South Carolina primary with a big lead. A new CNN RCA poll give him a 16 point advantage over Ted Cruz. On

the Democratic side Hillary Clinton leads Bernie Sanders 56% to 38%. The former Secretary of State lost the New Hampshire primary and won in Iowa by

the narrowest of margins.

Saudi Arabia, Russia, Qatar, and Venezuela say they've agreed to a freeze in oil production to try to stabilize prices. However, the Saudi Oil

Minister says he doesn't want a reduction in supplies and the freeze will only happen if other oil exporters also agree. Brent crude fell by a

dollar a barrel to just over $32.

The former U.N. Secretary General Boutros Boutros-Ghali has died. He was age 93. The Egyptian diplomat was the first African to hold the post. He

was head of the U.N. at the time of the Rwanda genocide and the breakup of Yugoslavia. Tributes were led by the current Secretary General Ban Ki-



BAN KI-MOON, U.N. SECRETARY GENERAL: His commitment to the United Nations his mission and his staff was unmistakable and the marks he has left on the

organization is indelible.


QUEST: Nicolas Sarkozy has been place under investigation for irregularities in the financing of his unsuccessful presidential campaign

in 2012. The former French President was questioned over alleged false accounting that allowed him to greatly exceed legal limits on spending.

Sarkozy has not yet ruled out running for President in 2017.

One of the world's largest commodity's companies has announced a giant loss and as a result is restructuring in a way that will involve a massive fire

sale. The company is Anglo American and it will sell off its coal and its iron businesses. Focusing on platinum, diamond and copper. Moody's cut

the company's debt to junk status.

CNN Money's Africa Correspondent is Eleni Giokos. She joins me now live from Johannesburg. Eleni what's gone wrong with Anglo American? Is it

just the current weathering of the storm or is this the commodity storm that we've know about, or is there something more going on here?

ELENI GIOKOS, CNN MONEY AFRICA COOESPONDENT: Well there's lot of things going on, Richard. And firstly this is a new era for Anglo American. It's

dealing with bottom basically on the commodities cycle. When you're selling you're selling coal and nickel assets which are selling at 10 year


[16:35:00] And you've got iron ore prices down 40% and you're still opting to sell some top assets. It's because Anglo American during the good times

a few years ago, was spending way too much money on capital expenditure. It was pumping a lot of money into various assets. But it's just drill

into South Africa, because it is essentially a South African company. Kumba Iron Ore asset is going to be sold. Now a few years ago, Kumba Iron

Ore has fantastic reserves making a lot of money. Things have changed. They want to get rid of this asset.

Platinum, yes, it's a very big focus for them, but they also sold an asset last year out of South Africa because of high costs, labor issues, which

are plaguing the country. So it's not only commodities. There's a lot of things that are impacting the company right now, and one of them is also


QUEST: OK. So it sells off the iron. It sells off the -- or at least some of the coal and iron businesses -- and it focuses on these precious

metals, and precious gems if you like. And as the company goes forward the viability with just those limited range, Eleni.

GIOKOS: Well this is interesting, because you know Richard, it used to own gold as well and it spun that off, AngloGold Ashanti then came to the fore.

And Mark Cutifani was the CEO of AngloGold Ashanti. The reason this is important is because Mark is an eternal gold bull. I'm not surprised that

he's going for the likes of diamond and platinum. Yes, copper prices are coming under pressure, but they're very strong assets and they're leader

within that space.

So they're trying to get into the consumer facing commodities, which perhaps are going to be a hedge going forward. And we know that platinum

is the alternative to gold. And perhaps that is the play. But we also need to remember when you got commodity prices as low as they are, and you

want to sell top assets. Who is going to buy and at what level? So it will be interesting to see if Mark Cutifani can actually make good on the

prices that is talking about. And whether he can actually sell over the next few months.

QUEST: Brilliant point. Commodity prices low, assets high, who buys, Eleni Giokos our Africa Correspondent, thank you.

On this very issue of commodity prices being low. Venezuela, which of course is the economy is not just in trouble it's almost a catastrophe. In

Venezuela there is now unrest on the streets as a result of the low oil price and the effect it's having on the social welfare. CNN's Maggie Lake

described what took place.


MAGGIE LAKE: Venezuela's economic crises is fast becoming a humanitarian crises. Pharmacies are running out of medicine. Lines get longer for

rationed food at supermarkets, and crime is spiraling out of control. President Nicolas Maduro now admits what all Venezuelans have known for



NICOLAS MADURO, PRESIDENT VENEZUELA: (through translator) I have declared an economic emergency, because we are in the middle of an economic



LAKE: This has the largest proven crude reserves in the world. But as oil prices plunge the state is running out of cash. A large debt bill coming

due this month is expected to be paid, but after that uncertainty looms.

SHANNON O'NEIL, COUNCIL ON FOREIGH RELATIONS: It seems almost impossible to find a scenario where they don't need to default probably later in the

year. And what does default looks like it is really anybody's guess, but it looks very messy.

LAKE: Venezuela needs oil at over $100 a barrel. About five times more than where crude is trading right now. During the boom times former

President Hugo Chavez ramped up social spending, but saved little for the future. With benefactors like China, also struggling, the Maduro

government has few places to turn. And anger at the government is at a fever pitch.


UNIDENTIFIED WOMAN: (through translator) As hungry as us, not them, it's us the people. None of them, politicians, governors, nor the president.


LAKE: It could get worse. The IMF says inflation may hit unprecedented levels this year, more than 700 percent.


PATRICK DUDDY, FORMER U.S. AMBASSADOR TO VENEZUELA: The great fear at the moment is a social unrest. The problems of food and medical shortages are

clearly eroding support for the government even within its own base.


LAKE: With political opposition growing Venezuela's oil minister wants an emergency meeting of OPEC to cut production. The future of the Maduro

government could depend on it. Maggie Lake CNN New York.

QUEST: So step into a Mumbai taxi and you'll find a driver who's proud of the cab that he drives. You may also find a very different arena. A

canvas, and artists delight.

[16:40:00] I'll show you why some taxis in this city have decided that it's time to become colorful, after the break.


QUEST: Anand Mahindra says that the Indian economy is making incremental reforms and that the country is slowly moving forward. The head of

Mahindra and Mahindra believes that the Prime Minister Narendra Modi doesn't actually have a policy problem. It's more one of PR and

communications. Both of which need to be solved if India's reform program moves forward. As I spoke to Mr. Mahindra on the sidelines of the CNN

Asia Business Forum.


ANAND MAHINDRA, CHAIRMAN MAHINDRA GROUP: Funnily enough given the fact that the Prime Minister is such a consummate communicator. I'm surprised

by how poorly this government has done in communicating the accumulation of small but significant reforms when added up will make a big difference. So

I'm not really looking at these big failures of GST as something other than simply a deferred task. If you look at the small steps the big things they

made. As far as I'm concerned as a businessman, the atmosphere is significantly better.

QUEST: Those small steps, you know, the critics are -- or the external critics will say, "He should have done a Thatcher. He should have done a

Reagan." You really have to do it in the first year or two or you're never going to get it done because of the electoral process and you're the

fighting the next election.

Now let's ignore the fact he doesn't have full control of the parliamentary side. Could he have moved further and faster and deeper?

MAHINDRA: You can always say he could have done this and could have done that, and perhaps you're right over there. But in fact I think they need

to continue to focus on these small changes. Let's take a simple thing, crop insurance. That's not sexy. That's not glamorous. I sell tractors.

I know what farmers go through here. We've been pleading for crop insurance for a long time. It got this much column space when it was done

a month ago. That's a critical reform. They haven't convinced the world that is those small little tweaks, that kind of plumping changes that going

to make move forward. It's a communication problem, Richard.

QUEST: When you compare now where you're about to grow your company. Obviously the majority of it is still here, but you have got for example,

the scooter in the United States.

MAHINDRA: Which you are going to buy.

QUEST: I shall try it. I'm a very conscientious consumer, you know. And if I don't like it, I'll be sending it back.

MAHINDRA: I'll take that risk. I'll take that risk.

QUEST: Where are you looking to expand the company?

MAHINDRA: Interesting in the U.S. and I've been on record as saying with a sort of wry kind of tone, that the U.S. is our biggest emerging markets.

Our tractors are growing at 30 percent annually in the U.S. We don't get that kind of growth anywhere else.

QUEST: Why would you want to take on the U.S. market with John Deere at the helm, and Caterpillar and everybody else in there? Why would you want

to bang your head against that brick wall?

MAHINDRA: Well, you know, I'm not going to quote Hillary and say that is because it's there. It's because -- I'll quote another well-known phrase -

- Frank Sinatra, if you can make it very you can make it anywhere. You want to grow a global brand. You build it in the U.S., the rest of the

world is clear for you. Global brands still do not get built unless they're built in the U.S. So we're starting from the fountainhead from the

U.S. If we can build the brand for that little scooter that you talked about. Well frankly, the rest of the world is going to want it.


QUEST: Anand Mahindra talking to me here in India.

[16:45:00] So not every startup in the country is a tech or Wi-Fi or some sort of computer. Some are very low tech with high impact. Taxi Fabric as

I discovered on a ride in a cab.


QUEST: This is Mumbai, noisy, dusty, brilliantly lively. Home to more than 21 million people. Tens of thousands of whom use these iconic black

and yellow taxis for their daily commute.

Outside these taxis all look pretty much the same. Go inside and you discover some have had a drastic makeover.

Now I'm starting to see that the fabric is everywhere.

SANKET AVLANI, FOUNDER, TAXI FABRIC: Yes, I tell you I must put you in this cocoon that you enter, you know. And that's why I tell all my people

when they get in.

QUEST: Taxi Fabric created this transformation. A startup that's fest tuned colorful canvases in dozens of cabs. The themes tell the story of

Mumbai, and take the rider on a journey.

This fabric shows truck art. It's all so deliciously simple and remarkably effective. From the heavy rains of the monsoon, to yoga and meditation,

and of course Bollywood. The good the bad and the beautiful.

AVLANI: Yes, that's this taxi. It's the Bollywood, Bollywood celebrities, and you know, all of the characters here. And these are movies from 1980s

up until now.

QUEST: What began as an experiment has now grown. Even Cold Play shot their video inside a cab. Still the entrepreneurs face the age-old


Are you a businessman or designer?

AVLANI: I'm a designer.

QUEST: So you're a designer who thinks he's got a project that will make money.

AVLANI: Yes, absolutely.

QUEST: But you haven't worked out how to make money out of it.

AVLANI: We are working it out right now as we speak.

QUEST: More taxis that's the answer. The top-tops, the auto rickshaws. Taxi Fabric has grand ideas for expansion. To get into as many of the

rickshaws as they possibly can, and there are thousands of rickshaws across the country. Just think of what they can do.


QUEST: Just think of how risky. Somehow they always managed to miss you even when you cross the road. But I guarantee you if you wait for the

traffic to stop you will never get across the road. It's all about a bit of a luck, and a hope, and a lot of a prayer.

We are expecting and awaiting the president of the United States to speak. President Obama is talking at the end of an ASEAN meeting. He is expected

to refer to his perspective nominee for the Supreme Court vacancy filled by the death of Antonin Scalia. He's not going to give the name, but he'll

talk about the process and when he's going to do it.

That's coming up. Also you're going to hear from Tony Fernandez this evening, the CEO of AirAsia who's talking low oil prices which is giving a

unique moment in aviation. And we're and Mumbai, good evening to you.


[16:50:00] QUEST: Good evening from Mumbai. We are expecting and awaiting President Obama. It's going to be a short speech and maybe question and

answers when he's also going to talk about his plans for nominating a Justice to the Supreme Court. When the President speaks we'll bring that

to you. He's going to talk trade in other issues. He's been at an ASEAN Trade Nations Meeting.

Falling oil prices are creating a unique moment in the world of aviation. That's the view of Tony Fernandez the chief executive of AirAsia. When I

spoke to him here in Mumbai, Mr. Fernandez made it clear he'd always believed oil prices were too high and were going to fall.

TONY FERNANDEZ, GROUP CEO, AIRASIA: I mean this is a boon to the industry. Long-overdue, I always felt it was overcooked, from many of my interviews,

but yes, it's a great time for the industry.

QUEST: And how is it affecting your bottom line in that sense? Are you hedged?

FERNANDEZ: Now we're hedged, or hedged 50 percent. Where now hedged through about 50 percent for 2016. But I would say substantially lower

prices than where we were.

QUEST: But you were hedging.

FERNANDEZ: Well hedging is -- I've always said hedging is a temporary painkiller in that we've always done mechanical hedges. Hedge what you

sell. But this is a unique time were oil is so low that we have taken a larger hedge than normal.

QUEST: So what do you do next in terms of you've now got a very distinct differentiation between the ultralow costs, which are not, the legacies and

now the low-cost carriers, which have to decide how they're going to (inaudible).

OK. Now we leave Tony Fernandez and we join the president of the United States.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: -- Incredible hospitality these past two days. I have posted foreign leaders here before. It's

quite another to host leaders from 10 nations at the same time. And I want to thank everybody who helped make the summit such a success.

You know, for 50 years leaders and people across Southeast Asia have worked together through ASEAN to advance their mutual security, prosperity and

dignity. For decades the United States has been a proud partner with ASEAN. And this summit has built on the unprecedented cooperation we forge

over the past seven years, as I described yesterday. This spirit working together on behalf of mutual interests and mutual respect guided our work

over the past two days.

And so I especially want to thank my fellow leaders from the ASEAN countries for being here. For their commitment and for the progress that

we've made together. One of my main messages over the past two days has been the commitment of the United States to ASEAN and its people. That

commitment is and will remain strong and enduring. With our strategic partnership we have a framework to guide our ties for decades to come.

Here at Sunnylands we agreed to a number of key principles, including the principle that ASEAN will continue to be central, in fact indispensable, to

peace, prosperity and progress in the Asia-Pacific. When ASEAN speaks with a clear unified voice it can help advance security, opportunity and human

dignity. Not only for the more than 600 million people across ASEAN, but for people across the Asia-Pacific and around the world. And I'm pleased

that here at this summit, ASEANs strong voice allowed us to make progress on multiple fronts.

First we agreed to do more together to encourage the entrepreneurship and innovation that are at the heart of modern competitive economies. We had

an excellent discussion with a number of pioneering business leaders who reiterated the recipe for attracting trade and investment. Rule of law,

transparency, protection of intellectual property, efficient customs, modern infrastructure, e-commerce and the free flow of information.

Support for small and medium-size businesses, and perhaps most importantly, investment in people. Investment in strong schools to educate and train

the next generation.

Around the table there was widespread recognition that this is the path ASEAN countries need to continue on. If they do it will create even more

opportunities for trade and investment between U.S. and ASEAN countries. I affirmed our strong support for the ASEAN community. And pledge that the

United States will continue to be a partner in ASEANs efforts to integrate economies and reduce barriers to trade and investment.

[16:55:00] I'm also announcing a new initiative, U.S. ASEAN Connect. A network of hubs across the region to better coordinate our economic

engagement and connect more of our entrepreneurs, investors and businesses with each other.

We're also doing more to help aspiring innovators in the region to learn English, the international language of business. And I reiterated that

that the transpacific partnership, which includes the four ASEAN members, can advance economic integration across ASEAN and such stronger rules for

trade throughout the Asia-Pacific.

To that end, we've launched a new effort to help all ASEAN countries understand the key elements in TPP. As well as the reforms that could

eventually lead to them joining.

Second, with regard to security. The United States and ASEAN are reaffirming our strong commitment to a regional order where international

rules and norms and the rights of all nations, large and small, are upheld.

We discussed the need for tangible steps in the South China Sea to lower tensions. Including a halt to further reclamation, new construction and

militarization of disputed areas. Freedom of navigation must be upheld and lawful commerce are not being impeded.

I reiterated that the United States will continue to fly, sail, and operate were ever international law allows, and we will support the right of all

countries to do the same.

We will continue to help our allies and partners to strengthen their maritime capabilities, and we discussed how any disputes between claimants

in the region must be resolved peacefully through legal means. Such as the upcoming arbitration ruling under the UN convention of the law of the seas,

which the parties are obligated to respect and abide by.

Third, I made it clear that the United States will continue to stand with those across Southeast Asia who are working to advance rule of law, of

governance, accountable institutions, and the universal human rights of all people.

We continue to encourage a return to civilian rule in Thailand. We will sustain our engagement with the people of Myanmar as a new president is

selected, and as they work to implement the cease-fire agreement and move forward with national reconciliation.

Across the region we'll continue to stand with citizens and civil society and defend their freedom of speech, of assembly, and of the press. No one

including those in political opposition, should ever be detained or imprisoned simply for speaking their mind. That only stymies progress. It

only makes it harder for countries to truly thrive and prosper.

And finally the United States and ASEAN are doing more to deal with transnational challenges together. I offered our systems to help ASEAN

countries to better leverage Interpol data to prevent the flow of foreign terrorist fighters.

We agree that implementing the Paris climate change agreement. Including helping developing countries adapt to and mitigate the impacts of climate

change will be critical. And it will enable them to leap ahead to new and affordable clean energy. As we pursue our sustainable development goals

we're launching a new competition. An innovation challenge to encourage students across ASEAN to develop new solutions to boost agriculture.

We're moving ahead with our global health security agenda to prevent future epidemics. And I pledged additional U.S. assistance to help ASEAN combat

the horror of human trafficking.

So to sum up I believe the summit has put the U.S. ASEAN partnership on a new trajectory that will carry us to even greater heights in the decades


America's foreign policy rebalanced to the Asia-Pacific including Southeast Asia, will continue to be a foreign policy priority of my presidency. I

look forward to visiting Vietnam for the first time in May. And to becoming the first U.S. President to visit Laos when it hosts the East Asia

Summit in September.

I'm confident that whoever the next president may be will build on the foundation that we've laid. Because they're strong, sustained bipartisan

support for American engagement in the Asia-Pacific region. And through our Young Southeast Asian Leaders Initiative our investment in young people

and their business success and civil society and grassroots leaders across the region, I believe will further bind us together in a spirit of

partnership and friendship for many years to come.

So with that let me take a few questions and I'm going to start with Darlene Superville of the Associated Press. Where's Darlene? There she


DARLEEN SUPERVILLE, ASSOCIATED PRESS: Thank you, Mister President. My question is about the Supreme Court.

OBAMA: I'm shocked.

SUPERVILLE: What recourse do you have if leader McConnell blocks the vote on your Supreme Court nominee? And do you think if you choose someone

moderate and that Republicans might change course and schedule a vote. And as you consider that choice in who to nominate, what qualities are

important to you, and is diversity among them? Thank you.