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Quest Means Business
6.2 Magnitude Earthquake Hits Central Italy, At Least 120 Dead; Clinton Winning Silicon Valley Fundraising Battle; The Dow Ends Lower; Poroshenko: Putin Wants "Less Stable World"; EU Creates Maps to Focus Rescue Efforts; Japanese Cars Flood into Kenya; American University Campus in Kabul under Attack; Lloyd CEO Apologizes to Employees. Aired 4-5p ET
Aired August 24, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] RICHARD QUEST, CNN ANCHOR: The Girl Scouts celebrating the Centennial of the Gold Award. I've got a good feeling that the Girl Scouts
doing the gavel -- yes, you can stop ringing now. Oh, yes. I can say that was a rather firm gavel. Yesterday was a gavel going everywhere. Well
done to the Girl Scouts and the Gold Award on Wednesday, the 24th of August.
Now, we're going to take you tonight to Italy where many are dead, entire towns are ruined, and the country's mourning the victims of the devastating
earthquake. Our correspondents are covering it for us.
Qatari investors are picking up a souvenir from New York. Yes, a 10 percent stake in the Empire State. And cavorting on the company time.
Chief executives of Lloyds Bank is to apologize to his staff, but what is he apologizing for? I'm Richard Quest. We have an hour together, and I
mean business.
Good evening. It is 10:00 at night in Italy, and rescuers are continuing to work long and late at Amatrice as they're in a race to find survivors of
the 6.2 magnitude earthquake that struck nearly 18 hours ago. The actual town itself is all but gone as you can see from these pictures. At least
120 people are now known to have died. But as is so often the case with earthquakes, that number is expected to increase. As for the facts, the
earthquake hit at 3:36 in the morning, so obviously people were in bed. There have been small aftershocks, which have been reported over the past
few hours. Some almost as violent as the original quake itself.
Now, heavy rescue equipment has been slow to reach the most remote villages, which of course left the residents there digging through rubble
with their hands or whatever makeshift tools they could find to search for family and neighbors. The Italian Prime Minister, Matteo Renzi, has
already visited the quake site and he told his country the rescue efforts are of course a matter of national importance.
(BEGIN VIDEO CLIP)
MATTEO RENZI, ITALIAN PRIME MINISTER (through translator): In the moment of difficulty, Italy knows what to do. In the moments in which things do
not go right, all of it shows their best side. The government is committed to not leaving anyone, no family, no community, no neighborhood alone. And
let's get to work. As in the next hours we can continue to pull survivors out of the rubble and we can return hope to that territory which has been
so brutally hit.
(END VIDEO CLIP)
QUEST: Atika Shubert, our correspondent, is in the Village of Saletta for us this evening. Tell me where about it is and put it in perspective to
the epicenter, please.
ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: We're only about a mile from really what was the epicenter where we saw most of that damage in
Amatrice. This is a tiny village. Only about 20 people live here in winter. In summer the populations double because people from Rome come
here and stay in a lot of these homes. As you can see behind me, this is a home that's simply collapsed. Beyond it on the hill there is the town
center. And there used to be ten houses there not there are only two.
Just in the past few hours we've seen a lot of heavy moving equipment come through here. There's another truck coming through now. So research and
what really has been recovery efforts will continue into the night. When we arrived here earlier, there was hope of pulling two survivors from the
wreckage out there, unfortunately they pulled out the bodies instead. We understand that are still people missing in the houses behind us. They're
not hopeful that they are still alive, but they are trying to sift through that rubble now, Richard.
QUEST: Give us an understanding, Atika, for how wide the area of devastation is. Are we talking about isolated villages? Or are we
expecting -- often when we see earthquakes in India or southeast Asia, they cover vast waves of very large areas. What are we seeing here?
SHUBERT: The main town of Amatrice is where we're seeing most of that devastation. It was the closest to the epicenter and 2000 people live
there. But around that town there are a lot of these smaller villages which are really summer holiday homes. And these are the towns that are
the hardest to reach because they're often located in sort of mountain ravines, built into the hillside.
[16:05:06] And so not only have they collapsed, the rubble has sort of tumbled down the hill. And that's prevented a lot of this heavy earth
moving equipment from reaching there. They can't really get past the bridges and then the rubble that's blocked some of the roads. So it's only
in the last few hours they've actually been able to get the crews here with the proper equipment. And that's what's really caused the delays.
QUEST: I mean, to a large extent though, there should be -- whatever the physical difficulties, there should at least be no problem in getting the
required amount of support. Italy, you know, and surrounding countries can send more than enough heavy machinery, armed forces, helicopter. They're
not going to be wanting for rescue power.
SHUBERT: No. I mean this is -- we have seen a number of different crews here, civil defense, fire crews, also a lot of the construction crews
helping to clear the debris. There's definitely enough crews on the scene. It was just really about getting here. A lot of questions now being asked
though, about what kind of quake safety was already in place. Because, of course, there was the Aquila earthquake a few years ago. And after that a
lot of the homes were supposed to be fortified in the event of another earthquake. And it does seem that a lot of houses in this area simply
didn't go through those structural reinforcements.
QUEST: Which is something I have no doubt they'll make an inquiry about. Atika Shubert who will be up late this evening continuing to cover that.
Thank you, Atika.
Help of courses arriving. The Italian Red Cross has asked people in the area to remove passwords from their Wi-Fi access points, that obviously
will allow more people to go onto Wi-Fi and not only tell people about where they are, but also assist in the rescue efforts. The regional health
service, of course, is calling for blood donations, and has set up an interactive map with donation centers. And the Pope has dispatched a team
of six firefighters from the Vatican who will assist in the search and rescue effort. The Pope Has Canceled the planned speech in order to pray
for the victims and the survivors.
(BEGIN VIDEO CLIP)
POPE FRANCIS (through translator): I cannot begin to voice my great pain and my closeness to all the people that are in the area hit by the
earthquake. And to all the people who have lost their loved ones and those who still feel moved fear and terror. Hearing the mayor of Amatrice say
the town no longer exists and hearing that there are children among the victims, I am deeply saddened.
(END VIDEO CLIP)
QUEST: Joining me now via Skype is Barbara Contini, who is the undersecretary general for the Red Cross in Italy. And we understand you
of course have just come out of your meetings and your control center to talk to us. Tell us the latest situation.
BARBARA CONTINI, UNDERSECRETARY GENERAL, RED CROSS, ITALY: Well, we moved to engage through all over Italy since yesterday night at 4:00. All our
regional centers in the two main areas. So practically we are giving three different kinds of support. One is very important, it's psychological
support to the people both in Accumoli and Amatrice. Then the logistical and operational support, which is the makeshift kitchens for everybody, for
the population and the tents for the light, because people are very much afraid and scared. And then also the dog handling units that we moved from
all over the regions. So in three different ways we are engaged since this morning at 4 o'clock.
QUEST: Is it your feeling, bad both yourselves and the authorities, you have control of the situation? Or are there areas that you are still
aiming to get to and frankly, where you fear that there will be further discovery of loss of life.
CONTINI: Well, to tell you the truth, since this morning or in the operator of emergency unit here, everything is absolutely under control.
Because we have everybody, the civilian institutions and the military institutions, and we cooperate together in only one operation area and
room. And it's everything organized and common and we're all there. So we know where our staff is and where our staff from other centers are. So we
are there and we're covering everything and everybody in those areas. So, of course, there is somebody who is going in one side and another one in
the other side. Just not to duplicate.
QUEST: What more do you need by way of support, by way of resources, by way of help.
[16:10:00] What more needs to be sent do you think?
CONTINI: I think tonight will be very important to understand what the situation or how the situation will go. But I guess a lot of needs for
emergency needs, for example, dresses or food support and normally whatever is in our device. Our devices in the last hours were 80 devices, or nearly
80 devices, and 400 people. And they're organizing all the needs and in two hours they will let us know what are the new needs.
QUEST: There is never a good time to have an earthquake, but the middle of the night when people are sleeping at home is amongst the most devastating
times, isn't it?
CONTINI: Yes, it is true. This is the second time. The first time I was not here, but we were left in 2009. I was in Tokyo with my staff. But now
tonight I heard it in Rome. And Rome is very far from the area of Amatrice and Accumoli. And we heard this very strongly, both the first time and
second time. So was all during the night when things are happening and always when you're not waiting for it.
QUEST: Barbara, will let you get back to your duties. Thank you so much for joining us.
CONTINI: Thank you.
QUEST: I appreciate it, thank you very much indeed.
Now let me give a bit of perspective to what we're talking about. Amatrice is around 32 kilometers from L'Aquila. That's were more than 300 people
died in an earthquake seven years ago. Have a look at the map and you'll start to see as we take you into the earthquake zone. Italy is prone to
earthquakes, because of the movement of two segments of the earth crust, which you can see on this diagram. There is Italy and here you have the
various parts of the plates, the tectonic plates outlined in red. The line that you see running through Italy is where the Eurasian and the African
plates meet. And as you see, it couldn't get too much closer than Amatrice, which is right in the middle. The African plate is actually
moving very slowly towards the Eurasian plate, northwards. And as it moves closer, then of course classically the pressure builds up. When it reaches
a breaking point that's when you get this massive amounts of energy released in the form of an earthquake. Tom Sater knows a great deal more
about it then myself and joins me from the CNN World Weather Center. Tom, looking at that, I mean I've just given a thumbnail sketch. One thing I
always remember about earthquakes I see on the chart here you've got the magnitude at 6.2. But I also remember that that number is exponential in
terms of force as it goes up. So a 6.2 to a 6.3 is much greater than it just seems -- you explain it to us, Tom, please.
TOM SATER, CNN METEOROLOGIST: Well, there is a lot of built-up energy and you did a fantastic job with your explanation their tectonic plate
movement. But in Italy it gets a little more complicated. The signature here really, besides a 6.2, is the 10 kilometers in depth. And that means
a lot. Now, according to the USGS, we haven't had as many aftershocks as the European, Mediterranean Seismology Center, more on that in a minute.
But when you talk about that Eurasian plate off towards the east there are several sub plates, let's say several fault lines. I mean there's over 70
of them that stretch from around North Northwest down to the South Southeast and that's where the European Mediterranean Seismology Center
says there's been over 140 aftershocks in the first 13 hours. Now, Amatrice here, elevation 950 meters. You get up into the mountains, as
we've seen in some of the video, and it's 2,000 and 2,500. But all of these towns here, Richard, are going to have to be searched. There's going
to be search teams, rescue teams throughout. 2600 people as of the census in 2016 are in Amatrice.
Now, more on this. Because when you look at the shake map. This is interesting. And the higher terrain, they didn't have much in Rome. They
felt light shaking. That's about 100 to 106 kilometers away, but 1 million felt light shaking. But when you get to the areas of the yellow and in the
orange here, this is important, because 234 very strong and 13,000 felt these severe. That is in this general area where there are several sub
plates as we talked about. So each one of these can build up energy, depending on how deep it is. An aftershock can release another plate to
release more energy. So according to the USGS very early on preliminary model show, as soon as the epicenter showed its magnitude 6.2.
[16:15:00] They said between 100 and 1,000 fatalities could occur. There is a good 33 percent chance on that. We've passed that now at 120. Most
likely will go up, but they've been pulling dozens out, great news.
Economically, this is interesting to. Based on the population, and this is not a high commerce center, of course industrial region, 35 percent chance,
Richard, that in millions of dollars there could be $1 billion-$10 billion loss here. And when you look at the overhead structures, I mean some of
these images look like Kathmandu. I mean it's just amazing.
Now several buildings that were maybe have built in the last 20 years, 30, 40 years could have withstand this. But again, the center tower, the civic
tower they call it, the clock, that was built in the 13th century. So again, when you look at something like this and when we talk about
aftershocks, here is the number. I want to get to this really quickly. On average, based on historical averages, a 6.2 quake will give us an
aftershock at 5.2. We had a 5.5 in the first hour. We have seen significantly higher aftershocks than on average. Which means there's
still a lot of built-up energy down below. Again more aftershocks are going to occur, but at least we're starting to see the resources here.
Tenfold of what they had in Nepal.
QUEST: Please, come back to us when there's more to report in terms, if there's more aftershocks while we're on air, I expect to see you telling us
all about it. Thank you, sir.
SATER: Will do.
QUEST: will continue, QUEST MEANS BUSINESS. We'll get back to our business again after just a moment.
(COMMERCIAL BREAK)
QUEST: Tim Cook is marking his five-year anniversary as the chief executive at Apple by hosting a fundraiser for Hillary Clinton. Secretary
Clinton is on a fund-raising spree through California. And guests to the event being held in Silicon Valley have been reportedly been asked to
donate at least $50,000 to the Clinton campaign. Tim Cook is the latest and the growing list of tech executives who are trying to help Mrs.
Clinton beat Donald Trump in November.
If you look at the other ones, you've got the salesforce chief executive, Mark Bennett off Marc Benioff. You've got Google's chief financial, Ruth
Porat. And Napster founder, Sean Parker Half. And LinkedIn founder, Reid Hoffman. There are some of the biggest names in tech who are backing the
Clinton's bid for president according to the campaign.
Joining me from San Francisco is Connie Guglielmo is the news editor-in- chief. Good to see you, Connie, thank you. I need you to put this in perspective. I can hear to some extent the viewer saying, but of course
these techies like Clinton. Sort of the left wing would naturally go to that. But at the same time there's a lot of money in Silicon Valley that
one might have thought would have bit far more likely to go to Donald Trump because of his tax policies. So how do these two sides coexist?
CONNIE GUGLIELMO, NEWS EDITOR-IN-CHIEF, CNET: Well, you pointed out a few of the notable tech executives who are supporting Hillary Clinton. Who
have come out and said that they are Democrats.
[16:20:07] What you didn't mention was one of the most prominent Republican tech executives, and that is Meg Whitman. A billionaire here in California
who leads Hewlett-Packard, and she came out in favor of Hillary Clinton and also said she would fundraise on her behalf, which was a very unusual
movement on her part.
So what you're seeing is people looking at this election which is a very unusual, some would say extraordinary election, at the people and to the
candidates and the policies that are going to best help the industry. And which is why you're getting people on both sides of the political spectrum.
QUEST: Now, I was reading this open letter from the technology leaders on Donald Trump's candidacy that was sent. You know, it's basically a litany,
from immigration, to visas, to entrepreneurialism, to press credentials. Finally, we believe government plays an important role in technology
economy by investing in infrastructure and innovation. If we look overall at the tech community, would you say fairly that they are more democrat
based?
GUGLIELMO: I would say, that yes, I believe they are. Because they have been very strong proponents of immigration, breed talent in from other
parts of the world. 40 percent of the Fortune 500 companies were founded by immigrants and their children. So tech has always been open to open
borders, open ideas, open exchange and that seems now to jive more closely with the platform of the Democrats.
Having putting forward the investment in infrastructure that were talking about is investments in Wi-Fi and broadband, bringing Internet access to
localities across the country. And so if you believe in the need to build out that infrastructure, that doesn't discount the need for roads and
electricity in schools, but if you believe that that is what is going to keep America competitive, then the platform that you're going to support
becomes a little more obvious.
QUEST: and of course the fabulous wealth that some have made in Silicon Valley, not all, but I think you would agree, even in the second, third and
fourth tiers down from the top, people have still made sizable amounts. I mean are you expecting, or would you expect to see sizable amounts moving
into this election, more than just the fund-raisers that we've heard so far?
GUGLIELMO: Well, I would think today's event where Tim Cook is hosting a fundraiser for Hillary Clinton. As I mentioned, Meg Whitman, one of the
most prominent billionaires out of the tech industry has said that she will put six figures into Hillary Clinton's campaign. Yes, there are lots of
tech billionaires and multimillionaires who have, you know, been very successful and there are hundreds and thousands of people who have made
tens of millions of dollars. And again, it's what do they believe in?
And besides the tech industry, they are also very much about inclusion and diversity. That has been a very big theme here in Silicon Valley. The
industry hasn't done a really good job of really representing that, but they are working on it. But if those are the ideals that you stand behind
and you're building your companies on, then you're going to have to put money behind it.
QUEST: Connie, we're so grateful that you come and joined us this evening to put it into perspective. Please, do help us as this election moves on.
We look forward to having you back again on QUEST MEANS BUSINESS, thank you.
GUGLIELMO: Absolutely.
QUEST: We need to turn to some breaking news. We talked about what's happening in Italy. Another story I must bring to your attention this
evening. An attack on the American University in Kabul, in Afghanistan. It's killed one guard and left 21 students injured. Now the reports that
were hearing from the students, say they heard explosions and gunfire.
Bilal Sarwary is a freelance journalist in Kabul joins me now on the line. This sounds particularly horrific in the sense of a car or something going
against the gate. The students in classes hearing the explosions. What more can you tell me, sir?
Hello, sir, can you hear me? We appear to be having a little bit of a problem there. I'm guessing that Pilar can't hear me just at the moment.
We'll return to the story, of course, because it is a serious story.
While we wait, let's see if we can get a connection to Afghanistan. Allow me to show you to the Dow Jones. Fascinating what happened. Look at the
Dow Jones in the world and you'll see a late selloff. The market opens down in the morning. It sort of trucks along. After luncheon we do get a
bit of a rally. But that rally evaporates by the afternoon. Now we are off the lows of the day. Were about 74 points down at the low 74 to 80
points down. So we are at the lows, and it was Farmer, apparently, that pushed the market and made it considerably lower.
[16:25:00] Wall Street was generally flat for the day until that dip into the session. As a result, it was off more than 65 points. Next in the
program I will show you what's happening in the European board, but of course obviously, in Europe most of the attention was not on the financial
markets. It was in Italy, which where we will return after the break as the search for the survivors continues of the violent earthquake continues.
It is QUEST MEANS BUSINESS on a Wednesday.
(COMMERCIAL BREAK)
QUEST: Hello. I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a minute. When the EU's crises management team tells me they're doing
all they can to support Italy in the hours after its deadly earthquake. And they stand ready to support even more.
And Qatar finds itself in an empire state of mind. To do so it's buying a stake in one of the world's most famous buildings. And for all of that
this is CNN, and here, as you'll expect, the news comes first.
At least 120 people are dead after a 6.2 magnitude earthquake in central Italy. Thousands of people have been displaced with entire villages razed
to the ground. Rescuers are working to pull people from under the rubble of their former homes. The rest of the area is describing the moments when
the quake struck.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): Tt was very scary. There was a huge tremor. Everything was moving and you were not able to get up. There
was no light, nothing. No one rescued us. No one came to our rescue.
(END VIDEO CLIP)
QUEST: An attack at American University in Kabul, in Afghanistan left one guard dead and 21 students injured. Students were telling CNN they heard
several explosions and gunfire. Dozens of students and staff reportedly were trapped inside.
The Vice President of the United States, Joe Biden has arrived in Turkey on a mission to ease tensions between the country. Turkey blames a self-
exiled cleric living in the U.S. for the last month's failed coup. An extradition request is expected to come up in the agenda during the visit.
Vice President Biden has assured Turkey the U.S. is cooperating.
(BEGIN VIDEO CLIP)
JOE BIDEN, U.S. VICE PRESIDENT: The people in Turkey have no greater friend -- if you will excuse me, for being so self-serving -- have no
greater friend than the United States of America. Let me say it again. You have no greater friend than the United States of America.
(END VIDEO CLIP)
QUEST: Ukraine's president is accusing his Russian counterpart of wanting Ukraine to be part of what he called to be he called the Russian Empire.
On Wednesday, it's 25 years of Ukrainian independence from the Soviet Union. And Petro Poroshenko tell CNN, that Russia was trying to make the
world less safe and stable and less secure.
[16:30:00] PETRO POROSHENKO, UKRAINIAN PRESIDENT: The purpose of Putin is an attempt to destabilize the situation in Ukraine. They don't need the
neither Donetsk nor Luhansk. They need the whole Ukraine should be the part of Russian Empire and they will not destabilize the global security
situation in the world.
(END VIDEO CLIP)
QUEST: And look at these pictures. The world's largest aircraft crash landed on its second ever test flight. Airlander 10 nosedived -- there it
goes, straight into the ground. Nosedived very slowly as a return to an airfield north of London. The pilots weren't hurt, thank goodness. The
British company behind the aircraft has not given a reason for the crash. British regulators have begun an investigation. It's only its second
flight with this giant beast of a craft.
Amatrice is a town that's now frozen in time. The clock tower is one of the few structures still standing and the hands on the clock stopped at
3:36, the exact time the earthquake hit. The search for the living continues, of course. CNN's Erin McLaughlin is in the region.
(BEGIN VIDEOTAPE)
ERIN MCLAUGHLIN, CNN CORRESPONDENT (voice-over): Buried beneath the rubble a scream of life. Are you able to breathe? A rescue worker asked. Only a
bit, was the response. A bit, OK. The important thing is to stay calm. Police officers are now on their way.
These are the lucky ones. Young and old, the survivors of Wednesday's deadly earthquake. As they make their way to safety, the look of shock is
all too apparent. This quake struck this holiday region in the dead of the night. Many were sound asleep in their beds. Jon Carlo says his house in
the town of Amatrice collapsed.
JON CARLO, EARTHQUAKE SURVIVOR (through translator): I have never experienced anything like this. Small tremors, yes, but nothing this big.
This is a catastrophe.
MCLAUGHLIN: In the immediate hours after the quake, and Italian journalist was among the first to arrive and found a local priest desperate for help.
I don't see the operation taking place, he says, we need more help. We need everybody to deal with this emergency. As you can see, there is not
much happening here.
The topography of the region compounds the rescue efforts. Remote villages, the mountainous landscape, they're difficult to access in the
best of conditions. This is where Italians and tourists go to escape the summer heat. Emma tucker was one of them.
EMMA TUCKER, EARTHQUAKE SURVIVOR: The house was tremoring and shaking. It got more and more intense. It was absolutely an appalling noise, clinking,
thundering, sort of rumble. It sounded like somebody put a bulldozer under the house to try to knock it down
MCLAUGHLIN: In Amatrice more help arrives. The wounded carried away on stretchers. Gold foil is held up out of respect for the dead. The
villages 13th century clock tower is one of the few structures still standing. The hands frozen in time, 3:36 a.m. The exact moment when the
first quake struck, the exact moment when so many lives would never be the same. Erin McLaughlin, CNN.
(END VIDEOTAPE)
QUEST: The European Union is providing satellite images of the area that will assist rescuers. Alexandre Polack is a spokesman for the EU's
Humanitarian Aid and Crisis Management efforts. He joined me on the show a little while ago to give me the EU's effort and reaction.
(BEGIN VIDEOTAPE)
ALEXANDRE POLACK, EU HUMANITARIAN AID AND CRISIS MANAGEMENT: We stand in full solidarity of the Italian people. This message has been sent by Our
President Juncker, vice president representative Mogherini, but as well our commissioners. We've been in contact since night, since when it's dark
with the authorities, our European Emergency Center has been there. And the first support that the Italian authorities ask is really to offer
satellite images available to help the fantastic work that rescuers are doing on the ground and to support them. And to help specifically, you
know, to try to locate even more the people missing. And the work that of the truck, for instance in Amatrice or in Accumoli. So this is the
support. But if more support is requested from Italy, it has not been the case so far, but we have other tools available in our toolbox that we could
activate. But so far really are sought with the families, the victims. We're in contact with the authorities and we are providing these maps so
more lives can be saved basically.
QUEST: Now tell me about these maps. Who produces them?
POLACK: These maps the produce by the EU, European program that is call Copernicus. So it's a satellites and maps that are being produced by this
program by which, you know, you can have extremely specific maps or details, part of a city, and an affected city or part of an area.
[16:35:07] And it helps you do identify where really the needs are in terms of saving people in terms of supporting them a rescue team.
So the rescue teams on the ground are using the maps to try to locate where are the most important and most urgent location where we can actually try
to save as many lives as possible. So that's the way it's being produced. But I say it. Italy has not requested yet, but if it did, member states
could on a voluntary basis if Italy asks, for instance, send in protection teams being sent or finance support, but it comes after once Italy does an
assessment. As you say, now we're really in the emergency phase, we are in constant contact with the national authorities. We command what they do on
the ground and we continue to provide these maps and more, really, if Italy requests.
QUEST: The truth in this one, it's a tragic event. And it's an event that has happened in a G-7 country that is surrounded by first world economies.
So there really will be no excuse for a lack of rescue equipment and proper support for those people who have been tragically affected. Will there?
POLACK: Now what I can tell you. It's really what I've said. That's European Commission, you know, we've got a toolbox. In a terrible
situation like this we have to be with the victims, with the families, with the authorities and support their work. And again, everything that is in
our toolbox, being funds, being civil protection available, is available here. And we have to help people on the ground. So that's really what
matters today and in the days to come.
(END VIDEOTAPE)
QUEST: As we continue our program tonight, the famous socializing author, Dorothy Parker, wrote London is satisfied. Paris is resigned. But New
York is always hopeful. Qatar is so hopeful it bought a chunk of New York's most iconic skyscraper. It is, of course, the Empire State. But
which bit did they buy? In a moment.
(COMMERCIAL BREAK)
QUEST: A beautiful day in New York and a beautiful building for us to ogle over. It has been described as the closest thing to heaven in New York
City. It's the empire state building, classically art deco, magnificent in its excellence. Jutting out of the Manhattan skyline it stands as a
reminder of an era when America's greatest city raced to build higher to the sky testing the limits of engineering and industrial mite.
[16:40:00] Now some of the Middle East oil riches are being poured into this building. A deal worth more than $.5 billion, Qatar's Sovereign
Wealth Fund has bought a 10 percent stake in the trust that owns the skyscraper. Qatar has 10 percent.
Now, already Norwegian, Australian, and Japanese investors have also acquired part of it over the years. Construction of the Empire State began
in the 1930s during the Great Depression. There were 3,000 workers and they built the floor -- four and a half floors, four and a half floors
every week for a year. A 103 stories in total and it cost them $24 million. Of course, we remember the Empire State because only three years
after starting construction it featured in the 1933 film "King Kong." Already then they knew it was going to be an icon. The building battled
with the Chrysler to see who was going to be the world's tallest. In the end it was overtaken by the World Trade Center in the 1970s. But for the
best part of four decades this was the tallest building in the world. Donald Trump tried to take control in the `90s. The trust went public in
2013. The Empire State Building, magnificent.
Now Robert Reffkin is with us. The founder of Campass, a New York City real estate firm. Good to see you, sir.
ROBERT REFFKIN, FOUNDER, CAMPASS: Good to see you as well.
QUEST: I gave it sort of a recitation of the Empire State Building, but there's more to it than just the fact, isn't it? Tell me about this
building.
REFFKIN: Obviously, it's an iconic building viewed that way across the world. It was developed during the middle of the Great Depression. Many
people thought it would go bankrupt, but 3,400 workers built it in 13 months. It is a symbol of hope, aspiration and reflection that in New York
anything's possible.
QUEST: right, but as I look at the ownership, just about since the day it was built they have been squabbling, the Helmsley's, the Trump's, they've
all argued about who owns the Empire State.
REFFKIN: Yes, look, wealthy people want great things, right? This is as great as it gets. It's not only an iconic building but a safe haven. In
the United States It's viewed as a safe haven for foreign investors across the world. Where there's geopolitical risk. There is economic risk,
macroeconomic risk. And here in the U.S., not just the U.S. -- not just the U.S., but New York City -- it's more stable than any other market in
real estate.
QUEST: But there's lots of big buildings. Why this one? Because it's old. It had a $.5 billion refit. But even so in an era where you want
fiber and you want more coms and you want more air conditioning. I've been in a few of the offices over there over the years. They've been well done
out, but it's still an old building.
REFFKIN: Fun fact about this building is that 40 percent is revenue, at $90 million a year is produced by two floors, the Observatory Decks. It
just shows how much the world wants to be here. That said, compared to fiber optics and other investments and telecom and internet, if Qatar want
to put $35 billion into the U.S. over a five-year period, it's not that easy to invest that kind of money. So to put in $600 million into a
property like this that is stable, currently cash flow producing, that's a good opportunity.
QUEST: Is it? How does it compare? We're obviously in the Time Warner's Center. There's Hudson Yard being built. There's the World Trade Center,
World One Trade, which of course is the Freedom Tower, whatever it's called this month. How does it compare to have an office suite in terms of cost
in the Empire State as elsewhere?
REFFKIN: There's more upside -- as a tenant, there's more upside -- as an own there's more upside with the tenants here than in the properties that
you mentioned. It's relatively cheap. Actually we looked at renting space in the building as well. But I would say that, you know, still, the focus
is more on owning stable assets in the United States and in the United States, New York is as stable as it gets.
QUEST: In a word, is it your favorite tower in New York?
REFFKIN: Historically, absolutely. It represents hope, aspiration, the American dream, and everything is possible.
QUEST: Hope, aspiration, the American dream. Thank you, sir. Good to see you.
REFFKIN: Great, thank you.
QUEST: Now, while Qatar takes partial ownership of an American icon, Japan has taken over the streets of Kenya. An emerging middle class there is
clamoring for cars. And the most affordable ones are used vehicles from the land of the Rising Sun. CNN's Zain Asher reports in our series "AFRICA
LOOKS EAST."
(BEGIN VIDEOTAPE)
ZANE ASHER, CNN ANCHOR (voice-over): Nairobi, it's a city on the move. The economy is growing and with it an emerging middle class ready to get
out of cramped buses and into their own car.
[16:45:00] Car sales have soared in recent years and Japanese models are becoming more and more popular. Experts say about 80,000 imported Japanese
cars were registered for Kenyan roads last year.
UNIDENTIFIED MALE: Everything available in the market. If you want to start from the lower level to the top level, you can buy whatever you want
to buy, especially in the Japanese makes.
ASHER: But most cars on these roads don't come from showrooms. At the Kenyan port of Mombasa an almost steady stream of used Japanese cars drive
off of ships and head straight to the Kenyan market. Because of strict Japanese emission rules, most of these older cars no longer meet current
standards in Japan. But they're an affordable option to people in Kenya where emission laws are less rigid.
WALIMOHAMMED JIWA, GENERAL MANAGER, SBT KENYA: We have about five vessels a month. We try and book space in any available vessel from Japan.
ASHER: Walimohammed Jiwa is the Kenyan manager for Japan's largest used car exporter. Cars are shipped, driven to large holding sites attached to
ports, then delivered to customers across the country. To either used car lots, which then sell them or increasingly individual buyers. The
company's imports into Kenya has increased 40-fold in less than a decade and now most of the company's sales are made online.
JIWA: People are slowly opening up to the idea of importing the car on their own. Previously they would go to a showroom or broker or a car
dealer to get a car, but now the middle class wants to import a car by themselves.
ASHER: Import duties are substantial, sometimes even doubling a price of a new car. Still used Japanese cars selling here for $5,000 to $10,000 total
are meeting the demands and filling the roads of Kenya's changing face.
(END VIDEOTAPE)
QUEST: It maybe a case of regrets. He's got a few. He's the head of Lloyd's Bank in the U.K. who's sending a memo to all of his employees
apologizing for damaging the company's reputation. What did you do that was so dreadful?
(COMMERCIAL BREAK)
QUEST: we will return to the attack on the American University in Kabul, which has killed a guard and left 21 students injured. Bilal Sarwary, who
we tried to speak to earlier is a freelance journalist in Kabul. A few moments ago he spoke to CNN's Jim Sciutto.
(BEGIN VIDEOTAPE)
BILAL SARWARY, FREELANCE JOURNALIST: I was just able to speak to an Afghan Special Forces Commander for a crisis response unit. He's managing this
fight. He said, they believe at least two attackers are still alive, crisscrossing between the first, second, and third floor. He also
confirmed at least 260 people, mostly students, have been rescued by Afghan Special Forces.
[16:50:00] Seven people were just rescued from the gym, which is on the first floor. One of the gyms, Afghan guards for the university are also
trying to fire against the attackers, keeping them away from students, faculty. The electricity has been cut off on purpose so that Afghan
Special Forces using night vision goggles can really go after these attackers and try to save as many lives as they can.
The problem is that some people are stuck and they're caught in a very bad situation. Outside of the university campus, families, parents, brothers,
sisters are gathering. People are worried for their loved ones. We're still awaiting to hear officially from the Afghan Interior Ministry, from
the Health Ministry on Fatalities and Casualties. But one doctor at the emergency hospital, which is run by an Italian NGO is now confirming that
14 wounded were taken to the hospital including three women and three of those 14 are critically injured.
(END VIDEOTAPE)
QUEST: Tonight the chief executive of Lloyds Bank has apologized to all 75,000 members of his staff amid reports he spent time with his mistress
during a business trip to a banking conference in Singapore. H Antonio Horta-Osorio sent employees a memo in which he insisted he did not use
company money for his personal expenses. He acknowledged that reports like this, on the front page of "The Sun" newspaper in the United Kingdom,
"Lloyds Bonk" might have hurt the company. And the memo says, "I deeply regret being the cause of so much adverse publicity and the damage that has
been done to the group's reputation." Mark Murphy is the CEO of the leadership training research, Leadership IQ. He joins me from the CNN
Center in Atlanta. Mark, you don't think much of this apology, do you?
MARK MURPHY, CEO, LEADERSHIP IQ: Not really, no, no. In general, apologies really need to have three essential elements. They need to
actually say the words "I'm sorry." They need to be unconditional, and then you actually have to outline some next steps. If you do anything
else, it's really just a half measure that frankly leaves the door open for people to say, "Well, that really isn't an apology. I want to hear more
from you."
QUEST: Right, and what it leaves people to say, the only thing you're apologizing for is having got caught.
MURPHY: Well, when said, especially I deeply regret the negative publicity that has come to the company. He didn't say even I'm sorry for what I did.
I'm sorry for violating our code of responsibility. He didn't say any of that. He said I deeply regret that there was negative publicity, which is
loosely translated, I'm sorry I got caught for this.
QUEST: It's even worse in this case because when Lloyds introduced its new ethics code, he's on record as the new chief executive saying, the test is
always how would you explain your actions to your family, your friends, and your colleagues. This man has been hoisted by his own petard.
MURPHY: Exactly. There might be a case to have been made that he could say, "Well, I don't feel I need to apologize, a private matter is private."
But when you take into account that he wrote the code of responsibility or at least implemented the code of responsibility, and now his actions have
directly flown in the face of the that code of responsibility, he really does need to say, yeah, we've got a problem here and I'm sorry I broke
that.
QUEST: Now, is it a resignation matter? Let's just go through it. He didn't embezzle or he didn't swindle it. We believe he paid the expenses
for his lady friend. He had an affair. Well, that's not against the law. But there's the hypocrisy aspect of having behavior that's not living up to
his own artificially high standard. Is it a resignation matter?
MURPHY: I think the essential element here that would stop it from being a resignation matter is if he says, here's what I'm going to do. You know
what, I messed up. I am deeply sorry for that. And here's what I'm going to do to show everybody that, yes, I can come back from this and you can
come back from this. But he has to show those next steps.
QUEST: Right, but it's been a week of apologies. We've had Ryan Lochte. We've had Donald Trump. And Donald Trump didn't say I'm sorry. He just
talked about regrets. Now we have Antonio Rizzo. What do we learn all these apologies? Do we learn that these are just PR speak?
MURPHY: Most of the time it is PR speak. That's why when you get Mary Barra, a few years ago, with the GM recall, and she said, "I'm so sorry."
And when you get a Tim Cook when the Apple Maps had problems when they first launched on the iPhone, and he said, "We are really sorry about
this." That's why apologies like that tend to stand out, because honest to goodness apologies where people say," I'm sorry." Not I regret, I
apologize, but I'm sorry.
[16:55:04] Those are so unique that in this week of apologies, he actually could stand out as being the one who gave a good apology.
QUEST: I need to apologize to you, sir. I'm sorry, we're out of time. Thank you. Good to see you.
QUEST: Thanks, Richard.
QUEST: We will have a Profitable Moment after the break. It is QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. Qatar has bought 10 percent of Empire State. Whether you're an Empire State or Chrysler building lover and you
argue backwards and forward which is the most beautiful building in New York. It really doesn't matter, because this building upon which so much
in 1930s rested, depression leading to hope leading to recovery leading to rebuilding leading to the American dream. The tallest building in the
world for the best part of four decades. It's had numerous lawsuits. It was owned by Harry Helmsley. Donald Trump had part of an ownership once.
Time and again, the building that King Kong climbed has risen in our hopes and our spirits, which is why the fact that Qatar is now investing is so
interesting. The Empire State, magnificent.
And that's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable.
I'll see you tomorrow, good night.
END
