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U.S. Plans Next Move After North Korea Missile; Juncker Furious with No-Show Lawmakers; Stock Price Glitch Spook Tech Investors; WPP CEO: Huge Opportunities to Be Found in Iran; Stella McCartney Turning Ocean Plastic into Fashion. Aired 4-5p ET
Aired July 4, 2017 - 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 HOST: No trading, but lots of fireworks in the United States. It is of course, fireworks for Independence Day. Today
is Tuesday, it is the fourth of July.
Tonight, missiles with a very different message to the world. North Korea claims it can strike any country on the planet. MEPs go AWOL and Jean
Claude Juncker goes apoplectic. We'll speak to one of the few lawmakers who did turn up when the European Commission President said Parliament was
And one price fits all. The share price glitch that gave tech investors a very nasty fright. I'm Richard Quest working hard on Independence Day
because of course, I mean business.
Good evening, there's no such thing as a holiday, when you are the commander-in-chief. And this fourth of July, this Independence Day, Donald
Trump's security and military advisers are working to head off a threat from the other side of the globe, from North Korea. The latest, U.S.
analysis suggesting that the rocket that Pyongyang launched earlier today, was probably an intercontinental ballistic missile, an ICBM. Officials in
the Trump administration are reviewing all the data available to them. As the President prepares for a second international trip in just a day or so,
North Korea's short cover -- I mean the G-20 overall, but specifically when Mr. Trump meets President Vladimir Putin face-to-face for the first time
later this week.
Jeremy Diamond is with us, from Washington. We spoke a few hours ago, now there seems to be a view that this was an ICBM. The President has always
said -- I mean even if it is a very basic ICBM or the beginnings of a process -- the President has always said he would never let North Korea get
an ICBM. So how does he square this circle?
JEREMY DIAMOND, CNN WHITE HOUSE REPORTER: Well this is certainly a significant escalation, one that the White House today is taking seriously.
You mentioned that assessment right now that it is probable that this is an ICBM that the North Koreans launched. So now the President's national
security team has been having a series of meetings today to discuss possible responses, this is something that we expect the President will
respond to in some kind of way. Some of the options being looked at right now include potential movements of U.S. military forces in the region. So,
we'll have to continue to monitor that. But as you mentioned, this is a president who has been adamant that he will not allow North Korea to
advance in its ballistic missile and nuclear programs. And yet we're seeing this program advancing. So, this is going to have to force the
White House to recalibrate forces, for the President to reconsider his options.
QUEST: Now, Jeremy, as you rightly point out, the severity and the gravity of the situation. I guess this is not a moment when this president can
start tweeting about cable news hosts, or anything akin to that. When at the same time he now probably has to deal with one of the gravest crises
that he might face during his administration.
DIAMOND: I think we've certainly seen him find an ability to multitask it would seem would be putting it charitably, probably. But certainly, this
president we have not heard him yet respond since this ICBM analysis has taken place, he is going to be giving remarks in about an hour for the
fourth of July here at the White House. So, we'll have to wait and see if he actually is to respond in that manner -- Richard.
QUEST: I'd be interesting to see -- just as I finished with you, Jeremy, that message that he said, doesn't this man have anything better to do.
Jeremy Diamond, thank you very much indeed for joining us.
Now, news just coming in to CNN. The United States has requested a closed- door U.N. Security Council meeting to discuss the North Korea situation. As much as it feels like we've been here before, all too often when it
comes to North Korea, this launch comes at a particularly sensitive time internationally, in particular as we've just been talking with Jeremy at
the White House.
[16:05:00] As Jeremy was indicating, it's not clear how Washington responds. But if you look at some of the statements from the President, we
know what Trump's thinking has been and Beijing's influence is critical. He says perhaps China will put heavy move on North Korea. This was before
this was before the latest launch. And perhaps China will put a move and stop this nonsense once and for all. Recently, the U.S. placed sanctions
on a Chinese bank which it accused of secretly funneling cash to North Korea. A move designed to increase economic pressure on Pyongyang. So,
China is crucial in that respect.
But then there's a Russia element and Russia sees China, too, as crucial. Remember today, Vladimir Putin and President Xi Jinping meeting in Beijing.
Russia's Vladimir Putin said the two countries must work together to end the crisis. Ivan Watson has more on that meeting that took place from
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Richard, the North Korean missile launch coincided with the previously scheduled meeting in
Moscow between the Russian and Chinese President. They both issued a joint declaration expressing concern about this missile launch and they put
forward what they say is a plan for deescalating tensions on the peninsula. Take a listen to Russian president Vladimir Putin here.
VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): There is of course, the whole question of the Korean peninsula, the creation of
building of peace and stability. It is very important to push forward a joint initiative on settling the Korean problem. And that with a view of
immediately freezing the ballistic missile strikes and also dealing with the U.S. weapons in South Korea.
WATSON: So, the Russians and the Chinese are basically saying if the U.S. would stop conducting large-scale joint military exercises with the South
Koreans, then at the same time which he could perhaps get the North Koreans to suspend their nuclear weapons program. But they also took some
additional jabs at the U.S. saying they don't want Washington to use the missile launches as a pretext for sending more weapon systems to South
Korea. Such as the controversial U.S. THAAD anti-missile system, which both Beijing and Moscow do not like. It's recently been deployed to South
Korea. And they also said that they oppose any U.S. troops in general in South Korea. That's likely to be a nonstarter. The U.S. has had troops on
the ground there for more than half a century -- Richard.
QUEST: Ivan Watson, who is in Moscow. John Kirby is CNN's diplomatic and military analyst. The spokesman for the Pentagon and the State Department
under president Obama.
Well, sir, well indeed. I mean obviously July the 4th, Independence Day, I mean -- can we say I realized you're used to very highbrow questions, John.
But let me put it bluntly -- this is a hell of a mess.
JOHN KIRBY, CNN DIPLOMATIC AND MILITARY ANALYST: Yes, well look, this is a mess that the international community saw coming though, Richard, for a
long, long time. We know that Kim Jong-un has been trying to develop this capability and to weaponize an ICBM with a nuclear warhead. He's still
working on that. This is an issue that we've been dealing with for a long, long time. And there are no silver bullets here. There are no real easy,
QUEST: Right, but stay with us while I just explain to viewers exactly what we're talking about with this. It's as if Pyongyang claims the rocket
launched on Tuesday was an intercontinental ballistic missile. So, this is what it all means. You've got the short range ballistic missiles which are
under 1,000 kilometers. Then you go up a bit to the medium range at 1,000 to 3,000.
[16:10:00] Then you go to the intermediate range which is 3,000 to 5,000 in terms of range. And then you end up, John Kirby, at the intercontinental
ballistic missiles. But merely saying this, I mean you're an expert in these sort of areas. Just sending the rocket up doesn't mean that you can
deliver a warhead. Although it's a very serious development.
KIRBY: Exactly, you've hit it right on the head. It is a serious development. One we have seen coming. But just that he has conducted this
test alone, doesn't mean that there are claims that they can strike anywhere in the world, are legitimate. It is certainly a program that he
is going to continue to develop. So, look, this was a successful test. He'll learn from this. I think we should expect to see more. And he will
try to continue to hone this capability, to be more of a global reach weapon systems.
QUEST: Why won't the Chinese, as President Trump says, get hard with Pyongyang? What is it? I mean they don't want this lunatic to get -- or
in Trump's view, to get a weapon. They're closer than the U.S. So, they don't want him to get it. But why won't they put on pressure?
KIRBY: So far, I think they're hedging, Richard. They want a stable North Korea, that's not a threat on their borders. That is a potent antidote to
the Republic of Korea, which is aligned with the West and the United States specifically to the south. Don't want to see a reunified Korea peninsula,
that is friendly to the West. And so, they have been willing to sort of put up with Pyongyang and this increasing instability in the hopes that it
doesn't get so instable that it actually pose as threat to them. So, they've been kind of hedging here a little bit. But I will tell new
meetings with Chinese official that I attended with Secretary of state, John Kerry, that they are frustrated with Kim Jong-un. They don't see any
easy answers on their own. But they also have not been willing to use the influence that they know and we know they have.
QUEST: Haven't you just summed it up in your earlier answer, John, when you said he will learn from this. Jong will learn from this. At the end
of the day, frankly, if you can launch the thing, and you have a half- decent chance of getting a missile on it. It doesn't really matter if it hits its target. It will hit somewhere and it will cause devastating
damage. Whatever you send over.
KIRBY: Right. So, look, I mean you're absolutely right. We don't -- we're focused on this particular ICBM launch. Let's not forget that he has
other shorter-range missile capabilities. Some experts think that some of those shorter-range missiles can actually now be armed with a nuclear
warhead. But even if you take the nukes off the table, he has a very strong conventional component available to him to destabilize, to threaten
his neighbors and his partners. This is a bargaining chip. What he wants more than anything, Kim, is regime survival. And this is his bargaining
chip. That's why he's not slowing down. That's why he's not proving a willingness to sit down and negotiate these weapons systems away. Why
would they do that when they are giving him the chip they need to preserve his own regime.
QUEST: Brilliant to have you with us tonight explaining it. Thank you, sir.
KIRBY: My pleasure, thank you.
QUEST: Excellent. Now if you can imagine this is putting enormous pressure on South Korea's new president. Paula Hancocks is in Seoul and
joins me now. You heard that discussion with John Kirby. This is a hell of a mess. Do the South Koreans have any easy -- easy is the wrong word --
any obvious way forward that they want the international community to move?
PAULA HANCOCKS, CNN CORRESPONDENT: Well Richard, the one thing from the South Korean point of view, and obviously there are great concerns that
North Korea could potentially just have launched this ICBM, South Korea has been in sights of North Korean artillery, North Korean short-range, medium-
range missiles for many years. This ICBM is almost more of a concern to the United States than it is to South Korea. Because South Korea has been
under threat for decades from North Korea. We know that North Korea is able to hit Seoul within a matter of minutes if it wanted to. So of
course, this ICBM is really a concern for Washington. The fact that it could hit mainland United States. The fact that Kim Jong-un, the North
Korean leader on Januarys 1st in his new year's address said I am close to test-launching one of these missiles and saying that he wants to be able to
hit the U.S. with a nuclear-tipped ICBM. So really from South Korea's point of view, it's an ongoing concern.
[16:15:00] QUEST: Finally, Paula, with whom is South Korea most frustrated? The administration in Washington, whereof course the new
president is just visiting, the Russians, or the Chinese?
HANCOCKS: I would say President Moon is quite friendly with President Trump at this point. Certainly, publicly they say that that summit went
extremely well. And we are hearing President Moon saying more and more, he wants China to increase their pressure on North Korea. Mimicking President
Trump's line. Something he wasn't necessarily saying during campaigning. But we know that when you become president things can change. But
President Moon is still pro dialogue. He still pro engagement. It might not be exactly be the right time for that but he's probably more frustrated
with China, I would say.
QUEST: Good to see you, Paula. Thank you. Many hours busy day ahead. As the day gets longer -- your morning gets longer.
How to win friends and influence people in Strasburg. There were very few people in the European Parliament. You could also hear the tumbleweeds
rolling across the empty chamber as Jean-Claude Junker describes the politician who were there as ridiculous.
QUEST: The European Union Commission President Jean-Claude Juncker, almost lost temper with the European Parliament today. Look at the empty chamber.
There's over 700 seats, actually 751 deputies to be precise, or MEPs. Only about 30 showed up to hear Malta's Prime Minister, Joseph, Muscat, speak at
the end of the Maltese presidency. Mr. Juncker, President Juncker was incandescent with anger.
JEAN-CLAUDE JUNCKER, EUROPEAN COMMISSION PRESIDENT (speaking in French):
TEXT: The European Parliament is ridiculous, very ridiculous. I welcome those who have gone through the effort of the chamber, but the fact that
only about 30 MEPs are attending this debate is enough to show that the Parliament is not serious. And I want to state it today. If Mr. Muscat
were Mrs. Merkel, difficult to imagine or Mr. Macron, easier to imagine, we would have a full house!
ANTONIO TAJANI, EU PARLIAMENT PRESIDENT (text): I'm asking you, Mr. President, to have a more respectful attitude with regard to. Please, Mr.
JUNCKER: There are only a few members in the plenary to control the Commission. You are ridiculous.
TAJANI: I insist that you use a different manner of speech, Mr. President. We are not ridiculous. Please. Please.
[16:20:00] JUNCKER: I will never again, I will never again attend a meeting of this kind. The commission is under the control of the
Parliament, but the Parliament has to respect even the presidencies of smaller countries, what Parliament is not doing.
QUEST: Good grief. You can tell that President Juncker was angry because he spoke in English. And you can also briefly see Philippe Lambert
applauding Juncker during that exchange. He's a Green MEP from Belgium. He joins me now live from Strasbourg. So, are you ridiculous?
PHILIPPE LAMBERTS, EUROPEAN PARLIAMENT MEMBER: Well I don't think I am. But I would agree with President Juncker. That when the prime minister of
the country that held the rotating presidency showing up and showing respect by doing that, to the Parliament, it is a disgrace, that so few
MEPs are showing up. And especially the group leaders, of which I am one. I was the only group president to be present. And I find this lack of
respect. So, maybe Jean-Claude Juncker put it too bluntly. But fundamentally I think that he is right.
QUEST: Some would say long weekends and other things, and work being done in committees. What's the reason why they weren't there? Is it because
Joseph Muscat is boring?
LAMBERTS: No, Joseph Muscat is not boring. I had some spats with him, but he's not a boring person. The fact is that usually when you wind up a
presidency, this is probably not the most politically interesting moment. And I can realize that. Because we are just taking stock of what was done
the last six months, yet the Parliament is craving for recognition, especially by heads of states and government. But in order to earn that
recognition, that it deserves, actually it is to show also recognition and respect for heads of states and governments. And this is why indeed I
deplore the fact, maybe not at all 751, but that substantial numbers of MEPs did not show up.
Had I been Joseph Muscat, Malta's Prime Minister, I would not have been amused, addressing an assembly that tests democratic legitimacy. But where
so few MEPs are showing up.
QUEST: Was it tactful for the European Commission President? Was it tactful for him to sort of basically say -- while Muscat sitting there, oh,
by the way, if it had been Merkel or Macron there would have been more people here. Sorry. It's a bit sort of rubbing his own nose in it?
LAMBERTS: Maybe a bit. But he's got a point there. I would agree with him that if Macron or Merkel had shown up, we would have had a full house,
so there he is right. And of course, Juncker himself, he's is coming from a small country as Muscat does. As I do from Belgium. So, I could feel
for him. Because indeed it's not because you are Prime Minister of a small country that you deserve less respect. That your legitimacy is less than
that of a big country. And that is indeed a sore point.
QUEST: Now let's talk about the European Parliament. As long as I can remember, the Parliament has been craving relevance and more powers. And
the two seem to go backward and forward. If we take for example the Brexit deal. The Parliament will have to approve it. Parliament has many
opportunities to be not just relevant, but actually a fundamental part. And yet, and yet most people in Europe couldn't give a -- about the
LAMBERTS: Well you have a point there. I fully agree with you that the Parliament actually already has a lot of power. And I would like the
Parliament to use this power wisely. But oftentimes, well on Brexit, I think that we are playing our part. But I would agree with you that on
many points where the Parliament is also a decision-maker in European institutions, well the Parliament chooses to be subservient to the
continent, to the commission. I've seen that too many times in my eight years in the European Parliament. And that basically is the Parliament's
own fault. Before asking for more powers, the Parliament should exert all the powers it already has and show that it is relevant. We are doing that
at times, but not often enough in my view.
QUEST: Mr. Lamberts we're very grateful you came in tonight to talk to us. We look forward to having you with us again. It's the first time we've had
you with us on QUEST MEANS BUSINESS, it's a standing invitation to always come back and chat over these matters in our nightly conversation.
LAMBERTS: Thank you very much, appreciate that.
QUEST: Thank you.
LAMBERTS: You can count on me.
The British government memo brings up the possibility of people fleeing the country if it heads towards the so-called hard Brexit. The memo was
supposed to never have been released. Photographs caught the Health Secretary, Jeremy Hunt, carrying it on his way to a cabinet meeting.
[16:25:00] If you zoom in on the paper it reads, hard Brexit means people fleeing the U.K. On Twitter, the minister said he was just preparing an
answer to a possible question on the chances of workers leaving.
Jasmine Whitbread is a chief executive of London First. A business group calling for the U.K. to guarantee certain kinds of workers will still be
able to come. I mean -- people are getting very hot under the collar. I read the FT's piece this morning in which it talked about a messy Brexit
and it talked about the need -- do you not think we all just need to calm down and let the negotiations get under way properly?
JASMINE WHITBREAD, CHIEF EXECUTIVE, LONDON FIRST: Well we talk to business every day and business actually is pretty calm and pretty collected. And
has been talking amongst different business leaders across different sectors and coming up with solutions in terms of their top priority for
Brexit. Which is continued access to the talent that's needed to in order for the economy to need to grow and for the further jobs to be created.
So, businesses have actually been pretty practical and pretty level headed about it.
QUEST: There's a negotiation under way. If there is no single-market access, because the U.K. will not accept freedom of movement, how do you
square this circle?
WHITBREAD: So clearly, across business in London, that's London First membership. Across lots of different sectors, the top priority in terms of
concerns around Brexit. Yes, it's interesting about the single market and the customs union and of course, those things are potentially back on the
table. But consistently for the last year, the top priority has been continued access to the people better needed, that make London such a great
city and that make business continue to flourish. That's why they've really focused on sitting out very clear set of proposals. We will have a
new immigration system in the U.K. with Brexit. We'll have the need for that. And there does need to be control. We understand that. Business
understands that. But there also needs to be continued access to people right across the spectrum, not just in the sort of high-pay, hi skilled,
essential workers --
QUEST: Can you do that? I hear your argument and I'm familiar with your argument. I question whether it's possible to do it. At the same time as
remain true to the referendum vote.
WHITBREAD: Yes, that's what our proposal is aiming to do. It starts from the proposition that there does need to be a robust system in place, with
proper controls, proper checks. And you know that is accepted, business also is accepting that particularly in the areas of skill shortages, areas
like construction and hospitality, but right across the board, businesses willing to do more to train up U.K.-born workers, young people, U.K.-
Londoners. Although unemployment rates are the lowest levels they have been for some time. There are pockets, more can be done in terms of
apprenticeships. There is more that can be done in terms of skills. But that will take a number of years. Particularly in the shortage areas we're
looking at really proposing a transition period where those workers from overseas are currently filling those absolutely mission-critical jobs that
keep London going, are able to continue to enter in a controlled and fair way.
QUEST: We'll talk more about it. We'll be grateful if you come back as this continues. Thank you very much indeed for joining us.
So, it is July the 4th. The Independence Day in the United States. Obviously, no trading in the U.S.
President Trump is preparing for his second foreign trip. This one's pivotal. He'll come face-to-face and a full bilateral meeting with the
Russian President for the first time in a moment.
[16:30:00] (COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a moment. When the chief executive of WPP tells us why companies
can't afford to ignore Iran. And will sit down with Stella McCartney who is fashioned a plan to clean up the world's oceans. That's ahead on this
July 4th. This is CNN and on this network, the news always comes first.
U.S. military analysts believe North Korea launched a probable two-stage intercontinental ballistic missile. That's according to a U.S. official
with knowledge of the ongoing post-launch analysis. The missile flew more than 885 kilometers before splashing down west of japan.
Qatar's foreign minister has a message for his counterpart in the UAE, stop pretending to vilify Qatar, the reaction to the UAE's foreign minister's
comments that Qatar shelters and incites terrorism. Qatar's prime minister said the actions taken by boycotting countries are illegal.
India's Prime Minister Narendra Modi has arrived in Israel. Mr. Modi is the first Indian prime minister to visit Israel and is expected to discuss
trade and security issues with the Israeli Prime Minister Netanyahu. Mr. Modi's visit is not expected to include meetings with Palestinian
Cycling world champion, Peter Sagan, has been disqualified from the Tour de France for elbowing a cyclist and causing other riders to fall. It's not
clear whether he'll continue the race.
Right, annual tradition, some Americans celebrating Independence Day with a hot dog eating contest. It was Joey Jaws Chestnut who locked out his 10th
win in Coney Island. 72 hot dogs with buns in ten minutes. He broke his previous record of 70. Which he did last summer.
The Kremlin says Donald Trump and Vladimir Putin won't just shake hands and have a photo-op. Moscow says it will be a full-fledged bilateral meeting.
The "Washington Post" columnist Anne Applebaum joins me now live from London. So, if that which it is, a full-fledged bilateral, who gets what
out of it?
ANNE APPLEBAUM, COLUMNIST, WASHINGTON POST: Well, actually that's the great mystery. All one has really heard from President Trump is what he
wants to give Putin. We know that in his first weeks in office, he wrote up an executive order that would have lifted sanctions on Russia. But we
don't know in exchange for what. It's not clear what he hopes to get from the Russian President, is not clear what the basis of any kind of
negotiation would be. He seems to want to make friends. Perhaps for personal reasons, perhaps because he admires Putin and his style. He
admires the kleptocratic way of being. It's not clear what he would get from him.
[16:35:00] QUEST: Who needs this more? I suppose Donald Trump arguably needs it more. Who needs to come out of this having the upper hand more,
do you think?
APPLEBAUM: Well, Donald Trump -- America as in the United States of America doesn't need this at all. We have a very clear position towards
Russia. Which is actually one of sort of chilly relationship. But not a poor one. We have drawn red lines as to what we believe Russia should and
shouldn't do. We said they should not invade Ukraine. We said they should not invade other European countries and they should not interfere in
democratic elections in other European countries we don't need anything. There's no -- you know there's nothing that we need from them.
Russia needs a lot from us. Russia needs us to lift sanctions. Russia wants to be let back in to this kind of world of great power politics.
That Putin really needs to shine on the domestic stage so it's really him who needs something. The odd part this particular diplomatic encounter is
it seems that President Trump for egotistical and personal reasons, needs something from Putin. He wants to be seen next to him. He wants to be
seen doing a deal with him. I'm not sure why it's good for us as a country. But it seems that the president wants it.
QUEST: OK, but now let's say for example the range of issues from North Korea to obviously Ukraine. To just the bilateral relationship in terms of
the U.S. elections. Where does Syria fit in to this? Is this an issue -- I mean both sides can talk about Syria, and the next stages in a
perfunctory way, just because they have to talk about it and make no progress on it.
APPLEBAUM: Until now, the real problem with Syria has been that we have different end games in Syria. Putin's goal in Syria is to reassert
dictatorship. Our goal in Syria has been something else. Which is to create -- at least if not a democracy then at least a more just society in
which some of the you know, some of the more Democratizing and more tolerant groups in Syria can at least live and not be slaughtered in a
reassertion of dictatorship. Because we don't have any actual agreement with Russia on how the war should end, there hasn't been anything to talk
about up until now it may than president Trump has a different vision. Maybe he would like this reassertion of dictatorship and then he can
discuss that with Putin. That would be a real break with American policy up until now.
QUEST: Do you foresee or is it at all even in the realm of possibility that you end up with Reagan-Gorbachev moment where the two men, spotting a
rival or an adversary, but believe that if they, that there is something that they can do together? That would improve matters?
APPLEBAUM: So, I can imagine that Putin and Trump might see things that they could do together. The question is, would those be things that are in
American interests? And would those be things that are in the interests of democratic Europe? And in the interests of a peaceful Middle East? So, I
have no doubt they can find things in common. They have many things in common, they've tastes in common and -- so on. But whether that will be
good for the rest of us, is a bigger question.
QUEST: Finally, on the G-20 overall, I mean is it just a waste of time, this G-20? Should they all have just saved the airfare and stayed at home?
APPLEBAUM: I suppose there's an argument, you could do it all by Skype or WebEx, and do it online.
QUEST: I guess what I'm saying, the G-20 visit -- I'm not a fan of the G- 20. It's an unwieldy, large, disparity, no commonality in either political views or philosophical direction or economics. And I just wonder whether
it's ego at work.
APPLEBAUM: I wasn't crazy about it, I didn't like the G-7 or the G-8, either. When they become big, formal conferences that have to issue
statements, I agree, they begin to lose their point. I suppose at this point people are still around the world really, particularly in Europe, but
everywhere, are trying to learn what president Trump's real policies are and what kind of a White House this is. For many in the world, this will
be an important moment to see him again on you know in that context. And I guess that's useful for them. Other than that, I agree with you.
QUEST: Stay at home, save the money. Watch movies instead. Great to see you, thank you very much indeed.
Europe is trying to shape its relationship with Iran. Volkswagen is returning to the country after 17 years. The German automaker is going to
be exporting cars to Iran. By taking advantage of the easing of sanctions. Chief executive of WPP says Iran represents and presents a good commercial
opportunity, despite his political concerns. John Defterios asked Martin, how are European companies, including his own will take on Iran's consumer
MARTIN SORRELL, CHIEF EXECUTIVE, WPP: Well obviously, if there are continued sanctions there, there are things we can do and thing we can't do
we have affiliate relationships there. We have no equity associations there whatsoever. But we're affiliated with two of the leading advertising
agency groups there. With heavy digital presence, I may add. And you have to be careful about who you even affiliate with. So, you have to be secure
on that but having said that, it is 83, 84 million people with, 99.5 percent literacy rates amongst men and women. So, it's extraordinarily
sophisticated economy. And well-developed with strong historic ties whether it be music and art and philosophy.
So as a consumer market it ranks up there with Vietnam, which I think after the Vietnam War, was around 65 million people. It's now about the same
size as Iran. Obviously, bigger than Cuba. At around 12 million and bigger than Myanmar, which I think was around 60 million when that became
politically acceptable. But to date, we, given where we are located and where we operate, we have little option but not being able to extend our
equity operations, in a country like Iran, although I do hope putting aside political considerations, and religious considerations, given my faith.
And my concern about Iran's policy to Israel, putting those aside as an economic proposition, Iran is very, very important.
JOHN DEFTERIOS, CNN MONEY CORRESPONDENT: We saw the waiver from the White House in mid may saying Europeans are moving in rather aggressively. Is
the game going to be over by the time the Americans decide to go into this market?
SORRELL: We saw that a little bit in Vietnam, actually. We as a British company were able to move into Vietnam quicker than our American
competitors. Interesting analogy. But the European companies you're referring to have had strong market positions in Iran for many, many years.
I think Peugeot have had very significant proportion of the car market there and Renault Nissan I think have also had a strong position in Iran
for many years. So, European companies, western continental European companies have been there for some time.
QUEST: Martin Sorrell talking to John Defterios. As we continue, traders have the day off in the United States. They may need it after a data
glitch sent share prices into a tailspin. We'll explain why the NASDAQ -- it is very hard to understand what happened.
[16:45:00] QUEST: Bloomberg online, Google Finance or CNN Money on Monday night. You might have thought the NASDAQ had gone berserk. There was a
technical glitch that made a lot of NASDAQ stock prices all appear to have jumped or plummeted to the same value, $123.47. For Amazon that would have
been a fall of 87 percent.
Better news for Zynga, it would have been up 3,292 percent. In either case it was wrong. There had been no shift in the prices from the close and
123.47 was a fictitious price. Samuel Burke is in London. What was going on? How did that number, that rogue number get into the system?
SAMUEL BURKE, CNN CORRESPONDENT: Well, Richard, for those of us living over in the U.K. with the devalued pound, for a moment there, we thought we
could afford those pricey U.S. dollar stocks again but 123.47 is what they use as kind of just the reset number every day, but it was a shortened
trading day over there in the United States yesterday. And so that may have been part of the problem. That when they do that 123.47, it stuck for
longer than it should have, because it wasn't the usual length of a trading day. That's why you were seeing it in so many places. So, you have so
much technology involved in trading now and there are lots of pros and lots of cons, clearly, this is a con of tech and trading.
QUEST: The NASDAQ has been doing this for a long time. And it's not the first time we've had a holiday so I'm guessing they're looking very
carefully at what went wrong. But I also understand that that 123.47 was not on the NASDAQ's own systems?
BURKE: It wasn't on the NASDAQ system but when it's in so many places like CNN Money, like Google Finance that people really depend on, it's a major
problem. Yes, NASDAQ is investigating they're saying they think it's a third-party problem. They're looking at those vendors. But what one
person in Silicon Valley told me is yes, this is just a glitch, but it shows how vulnerable we are to hacking. Probably wasn't a hack, but
imagine if somebody doing something nefarious took advantage of something like this, actual trades were placed. At one point, thinking these were
the real prices. So, it shows again just how vulnerable we are. We put the cart before the horse when it comes to technology in so many sectors,
QUEST: On that point, on that wider point, what's it going to take before we get the message? Now during last week's crisis in terms of the
cybersecurity breach, one of our guests very clearly said, ultimately, you have to expect it's going to happen. It's not how you prevent it
happening, it's how you recover afterwards.
BURKE: It's going to be the big one. But a lot of times when I'm talking about the hacking reports whether it is just this glitch or an actual
hacking, I sometimes wonder, is this the big one? When I was reporting on WannaCry, I was speculating, is this something that would take down things
for a day, a week? It didn't happen, thank god. But when hear from Israelis, a lot of people in that tech sector, they always go back to the
theme that it will take something bigger than the financial markets, but something like the grid, the electricity or water being affected. If you
can't get water at your house, or electricity at your house because of some kind issue that will be the big one, that's when people will really wake
QUEST: How far off are we from that?
BURKE: Every time, I go to report, I wonder if this is the one. You've seen electric grids hacked in other places. I think it's incremental. We
might have two or three of those. Will it be in a smaller country like Israel or a major country like the United States. Most experts think we've
already dodged a few. It will come sooner or later.
QUEST: Good to see you, sir, thank you.
The European markets closed slightly lower on Tuesday. You've got to bear in mind, first of all, the U.S. isn't involved. The U.S. is closed so the
direction which comes from the largest market in the world doesn't exist. And then the markets weighed down by lackluster crude prices. Losses in
tech and the rise tensions in North Korea. So, in that maelstrom of misery, it's not surprise that market was down, but impressively, it held
its own. France's market fell .4 percent giving some of the gains they saw on Macron's big speech on Monday.
[16:50:00] There was no newsletter today, with it being July 4th. Now you can subscribe to our podcast by going to CNNmoney.com/quest. The
newsletter is published at this time on a normal day. On a normal day, where after the U.S. markets closes, before Europe begins, it briefs you on
what happened during the previous day and gives you an idea of what's going to happen the next day.
A fashion icon to be sure and an ecowarrior, no doubt. Stella McCartney will talk to us after the break on the issue of plastic in the oceans.
Designer Stella McCartney is also committed to an environmental cause, we sat down with Stella to talk about her fight to keep plastics from
polluting our oceans.
STELLA MCCARTNEY, DESIGNER: It's important to really bring the awareness to the oceans. You know, we're so lucky to have them. They account for
our every second breath that we take comes from the ocean. And if we're not very careful by 2050, there will be more plastic bottles in the ocean
than there are fish and life so we have to work with them. We have to save them and protect them and respect them.
CHLOE MELAS, CNN ENTERTAINMENT REPORTER: What types of challenges have you faced as a designer, trying to be environmentally conscience with your
fashion line, you now is it more expensive to produce these items? And also do you feel as though your consumer is willing to still pay top dollar
for things that perhaps are not made of leather, but are made of recyclable plastics, like the ocean?
MCCARTNEY: It's always a challenge. But it's, it's definitely something that I find really energizing and exciting as a designer. I love to use
innovation and technology, I love to be a game-changer. That's what I find exciting. I get a hit financially because in order to do all of this
research and develop things in the way that I do, it costs me money, but I would never put that on to my consumer. It's not their fault that I choose
to do that in that way. And I don't think that you ever see the difference. For me the most rewarding thing is a lot of the customers that
come to Stella McCartney haven't got a clue that it's not a leather shoe. Don't know that the lining of the bag is made out of recycled plastic
bottles, because there's no compromise on style.
MELAS: You're a pioneer when it comes to this there's not a lot of fashion designers that are doing what you're doing. Do you feel that the industry
as a whole is lagging a bit behind?
MCCARTNEY: I feel the fashion industry in this conversation, yes. I find it very old-fashioned, I think it's crazy that they're working with
materials that are killing billions of animals a year for a handbag. It seems ridiculous to me now, when you don't need to. I am proof you don't
need to my business is a healthy business, and we're an industry that I think could perform in a more mindful and responsible manner and that's
really my intention.
MELAS: Given the current political climate, especially in the U.S. with the president recently pulling out of the Paris climate agreement, do you
feel as though days like World Ocean Day is more important than ever now?
[16:55:00] MCCARTNEY: Yes. I think it's disappointing what is happening. And it's really important, you know at the end of the day this is
information. You take it, you can leave it. It's just about awareness. And if it can trigger one tiny little thing somewhere, the plastic water
bottle that will you might consume, OK, can I recycle this, I better make sure I can recycle it. Be a little more mindful. Plastic is everywhere
and ultimately it ends up in our soil and in our oceans and that's not good for our or our fellow creatures.
QUEST: Stella McCartney on the question of plastic in the oceans.
You can always get in touch, always have a chat. You follow me @RichardQuest. As we do, be assured of one thing, I read them all, the
good, bad and indifferent and even those that aren't that pleasant and we'll reply every now and again. We'll continue on QUEST MEANS BUSINESS
with a Profitable Moment, after the break.
QUEST: Jean-Claude Juncker, tonight's Profitable Moment. The European Commission president lost his temper in the European Parliament today,
calling them ridiculous, because only 30-odd MEPs, turned up out of 751, to hear President Joseph Muscat of Malta give his report on six months of
presidency. Juncker is simply right, it is a disgrace that there were so few. But I'm not sure you win friends and influence people by losing your
temper in such a fashion. Certainly not when the president of parliament remonstrated with him. But Juncker stood his ground. Good on him. He
basically said he wasn't coming back. I'm entirely certain it is nice for it's nice for Mr. Muscat to hear himself be told, by the way, prime
minister, if you had been Merkel or Macron, this place would have been full but you're not, so it isn't.
That really wasn't the point of it. The point is simply this, European Parliament for a long time has asked for powers, it's asked for relevance,
asked for importance, it's asked to be a player. It's got a lot of what it wants. Now it has to grow up and play its role. And that's the real truth
of the matter, not too many people in Europe actually care about the European Parliament, let alone vote for anyone who might actually be in it.
That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest on the Fourth of July in New York. Whatever you're up to in the hours ahead, I hope it's
profitable. We'll do it again tomorrow.