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Quest Means Business

Euro at 12-Year Low; Dow Plummets 333 Points; EU Tells Greece Stop Wasting Time; European Stocks Fall; Credit Suisse Poaches Prudential CEO; Wikipedia Sues NSA Over Internet Surveillance; Clinton Used One E-Mail for Convenience; Queen Christens UK's Biggest Cruise Ship

Aired March 10, 2015 - 17:00   ET

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

(NEW YORK STOCK EXCHANGE CLOSING BELL)

MAGGIE LAKE, HOST: The Dow slumps, the dollar strengthens. US stock markets are now closed after a bruising sell-off. It's Tuesday, the 10th

of March.

A triple-digit sell-off sparked by a double whammy of high dollar and high debt.

The man from Pru says he has what it takes to be CEO of Credit Suisse.

And Wikipedia's founder tells me snooping by US security agencies is out of control.

I'm Maggie Lake. This is QUEST MEANS BUSINESS.

Good evening. Tonight, worries about the Greek bailout pushed the euro to a 12-year low against the dollar, and worries over the US dollar

pushed the Dow and S&P into negative territory for the year.

The euro has lost nearly a quarter of its value in the past year, and it's expected to fall further in the weeks and months ahead. The latest

blow, fears about the future of the shared currency before Greek talks -- debt talks tomorrow in Brussels. The head of the eurogroup says the Greek

government must stop wasting time and put specific reforms on the table.

Some decline in the value of the euro had been expected as the European Central Bank began its bond-buying program this week. And the

exchange rate also got a push from the US, where a strong jobs report raised the chances of a rate hike sooner than expected.

Jamie Jemmeson is the head of trading at foreign exchange brokers Global Reach Partners. He joins us now from London. Thanks so much for

being with us. I think the question everyone's wondering about is what is driving this, and can it continue in terms of dollar strength?

JAMIE JEMMESON, HEAD OF TRADING, GLOBAL REACH PARTNERS: I think if you look at the fundamentals and the data that we've been seeing of late,

it's fairly obvious that we're going to see prolonged dollar strength moving forward from here.

The jobs data that you just mentioned there has been robust to say the least. Over the last six months, the non-farm payrolls figure has reported

a figure close to an average 300,000. And if you're looking at the unemployment rate as well, that's now trading at 5.5 percent, which is the

lowest that we've seen since May 2008.

And also, 5.5 percent is a level which some Fed members would consider close to full employment as well. So, if you're looking at that as one

aspect, and then compared to the eurozone and the ECB, what they're doing at the moment.

The ECB are embarking on a massive quantitative easing program. We've got worries of Greece, and we've got various commodities. The Swiss franc

have already decoupled from the euro, and there's talk also of the Danish krone decoupling from the euro as well. And that's just adding more and

more pressure and uncertainty to cross.

And obviously, as a result, we are seeing the move lower on euro- dollar, and I do expect it to continue that way.

LAKE: And Jamie, the central banks may be on divergent paths, but everything we've heard from the Fed so far suggests that even if they raise

rates, it's going to be gradual. Is much of that priced in? We've seen these currencies moving rapidly. It surprised a lot of people. Could we

actually reach parity between the euro and the dollar?

JEMMESON: The move has surprised me as well. I was expecting to see a little bit of support at 1.10. I think ultimately, it's not necessarily

the case of when interest rates go up, it's undoubtedly the next move from the Fed is going to be up rather than the eurozone. There is potential

that they could cut interest rates further.

But I think we have to look forward to six months of further than that as well. And there is also potential that if the economy is at full

employment in the US and we are still seeing positive figures, it could also mean more interest rates hikes moving forward from there as well.

LAKE: Jamie, we've seen -- we're talking a lot about the dollar, but we've seen really big moves when it comes to the dollar versus emerging

market currencies as well. What are the implications for those economies?

JEMMESON: For the emerging markets, we have seen a big sell-off. There's been a big sell-off in, I think, 22 of the emerging markets,

currencies fell today. And a lot of that is decoupling from the (inaudible) that we have seen historically where we saw low interest rates

in the US and higher yield in currencies being bought on the back of that.

Now that we are starting to see that reverse, and obviously the interest rate path ultimately change, we are starting to see these

countries that have some fiscal problems and also some deficit issues as well selling out to those currencies and going back into the dollar.

And the markets don't need a second opportunity to do that. As soon as the lights come green, they've definitely done that.

LAKE: They certainly have. They're fast-moving markets. Jamie Jemmeson from Global Reach Partners, thanks so much for joining us tonight.

JEMMESON: Thank you and good evening.

LAKE: Well, a strong dollar is bad news for US companies that rely on exports. The Dow ended the day down more than 330 points, erasing all it's

gains for the year. A short time ago, I spoke to Jim Awad. He's the chairman of Plimsoll Mark Capital. I asked him if fears of a strong dollar

are justified.

(BEGIN VIDEOTAPE)

JIM AWAD, CHAIRMAN, PLIMSOLL MARK CAPITAL: The markets don't like surprise, and the degree of strength in the dollar and the dramatic rise,

and the weakness in the euro and other currencies is a surprise for the market, and that creates uncertainty.

And I think what's really worrying the markets is that somebody might have borrowed money that's due in dollars, and they're using it in another

currency. And I think what the markets are afraid of is somebody is going to default on their debt because they can't service the debt because the

debt is denominated in dollars.

Now, that could be a corporation, it could be a sovereign entity. But the dislocations this dramatic in such a short period of time outside the

realm of expectations creates uncertainty about an unforeseen byproduct and event that could be hurtful and harmful to the credit markets and the

equity markets.

LAKE: Understandable why they'd be nervous.

AWAD: Yes.

LAKE: We've seen the kind of pain that can inflict. Part of why we're seeing the dollar strengthen is this anticipation that the Fed is

going to start raising rates at the same time that other central banks are embarking on new stimulus.

How is this stronger dollar, the sort of volatility that it may create, how is that going to impact the Fed's thinking? Surely they have

to be watching all of this.

AWAD: Oh, yes, they are. And to the -- whatever their intentions are in terms of raising interest rates, that the strength in the dollar subdues

that, because what happens is as the dollar goes up, it hurts the translation profits of American companies that are selling overseas goods

collecting in the foreign currencies and then translating back to the dollar.

So it hurts corporate profits. And if you hurt corporate profits, it can slip into employment and wages and profit margins. And so to the

extent that the dollar increases more than the Fed had factored in its models, then that will restrain the Fed from raising interest rates. It'll

make them do it a little bit later and at a slower pace.

LAKE: What do investors want to see? For -- you would think that the Fed talking about raising rates, or if it were an environment that they do,

it would indicate that the economy's finally healthy to grow on its own. One would think that would be good news for investors, and yet they seem so

nervous about this transition.

AWAD: Well, I think what the Fed -- investors want to see is the Fed get started so that we can start the path towards normal financial

conditions, but they want assurances from the Fed that it is going to be very slow and gradual, because certain indications in the economy are very

good, and there are certain ones that are weak. Confidence lately has been eroding, wages still haven't grown.

So, I think the markets want to see a balanced Fed, starting towards normalizing rates and financial conditions, but with assurances that

they'll be very slow, very gradual, and won't predetermine where they're going to take rates.

For instance, historically, rates would go to 4 percent during a rising cycle, short-term interest rates. But there are many who think that

this cycle will stop at 2 percent because the recovery has been sub-par. So, they want some guidance from the Fed that they're going to continue to

be very careful and adjust to conditions as they develop.

(END VIDEOTAPE)

LAKE: The EU has told Greece it's time to stop stalling and start talking. Greek officials are headed to Brussels to begin hashing out an

agreement with the country's creditors. Without a new deal, Greece won't get any more bailout money. As Jim Boulden reports, tensions between the

parties are running high.

(BEGIN VIDEOTAPE)

JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT (voice-over): Greek finance minister Yanis Varoufakis is known for speaking his mind, but he

said nothing walking into the EU finance minsters meeting in Brussels Tuesday.

In some ways, the time for public pronouncements is over. It's time to hash out the nitty-gritty on how Greece can stay afloat based on reforms

the previous Greek government agreed to, but not implemented by the new government.

PIERRE MOSCOVICI, EU ECONOMICS COMMISSIONER: Now we need to implement those reforms. Those reforms which are planned must now be transformed or

fleshed out into legislative proposals which can be adopted by the parliament into administrative decisions that are going to be adopted by

the government. And so, we need to have a very precise work.

BOULDEN: That precise work is back in the hands this week of the Troika. It's a dirty word still in Greece. The Troika is made up of

technocrats from the IMF, the European Central Bank, and the European Commission, seen in Athens as the ones imposing crippling austerity and

high unemployment.

The new Syriza-led government vowed to kick out the Troika and come up with its own reforms, but the Troika is back with talks about talks taking

up too much time, say the creditors.

JEROEN DIJSSELBLOEM, DUTCH FINANCE MINISTER: We've lost over two weeks in which very little progress has been made. The real talks haven't

started yet. There have been no implementation. So, we have to stop wasting time.

BOULDEN: Like any country, Greece has debt repayments to meet, but it can't even get the last tranche of $7.6 billion on the second bailout

unless the Troika agrees and Greece acts. After all, it has several repayments due this month.

Jim Boulden, CNN, London.

(END VIDEOTAPE)

LAKE: The uncertainties over the Greek bailout pushed European stocks sharply lower on Tuesday. A 3 percent drop in oil prices caused energy

stocks to tumble. Shares of BP and Total both closed down more than 3 percent.

Shares of Credit Suisse rose nearly 8 percent, helping limit losses on the SMI. It came after the bank named a new chief executive. Credit

Suisse has named its next boss. Tidjane Thiam will take over as CEO in June.

The Ivory Coast-born French national will be leaving UK insurer Prudential. He took the job there in 2009 and has been credited with

turning the company around.

Thiam will face a tough task rebuilding profits at Credit Suisse. It has lost 27 percent of its share price in the last year alone, and he's

never worked in banking before. Speaking in Zurich, the Credit Suisse chairman and Thiam said there was no question he can handle the role.

(BEGIN VIDEO CLIP)

URS ROHNER, CHAIRMAN, CREDIT SUISSE: Above and beyond everything else, of course, I have to say, ultimately what you're looking for is a

leader who can run a company of 50,000 people, who's positive, who's motivating, and who can have an impact in stimulating people to move ahead

and to actually get the company to the next phase.

And we unanimously decided that we'd found that person, and that person is now sitting next to me, and it's Tidjane Thiam.

TIDJANE THIAM, INCOMING CEO, CREDIT SUISSE: We're running at Prudential one of the biggest hedge groups in North America for our viable

countries, and a $120 billion book. I think I understand a thing or two. I've worked at the World Bank in the asset management team. I've given

help in pricing crisis of central banks.

So, I think there's more in the life and in the 28-year career than you can read from a resume. So, I'm very confident that I can understand

everything the investment bank does and I -- yes. So, I'm not -- I don't have any worry.

(END VIDEO CLIP)

LAKE: Thiam's presence is already having an effect. Credit Suisse shares -- that share price soared almost 8 percent Zurich on that news.

Well, it is a fight for privacy for 500 million monthly users. The founder of Wikipedia says the security agencies in the US need to be reined

in, so he's filing a lawsuit to do just that. We'll speak to him next on QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

LAKE: "Knowledge flourishes where privacy is protected." That is the final line in a damning "New York Times" opinion piece by Wikipedia founder

Jimmy Wales. Titled "Stop Spying on Wikipedia Users," Wales says, "The mass surveillance of internet traffic by the National Security Agency in

the United States is illegal." And so Wikipedia has filed a suit to stop it.

This is all over what's called upstream communication, the data that flows through the interconnected hardware that makes up the basis of the

internet. It's what the NSA taps into to monitor what people do online. Wikipedia says this jeopardizes its user sense of privacy, and that limits

their freedom of expression.

I spoke to Jimmy Wales earlier. He told me security agencies are out of control and clearly breaking the law. I asked him to lay out what

Wikipedia wants from the US government.

(BEGIN VIDEOTAPE)

JIMMY WALES, FOUNDER, WIKIPEDIA: We want them to stop spying on Wikipedia, effectively. But broader than that, we want them to acknowledge

and to stop these programs, which we believe are both illegal in the sense of exceeding the statute that authorized them, but also unconstitutional.

LAKE: You know, Jimmy, we hear in this debate governments say that they need to be able to access this information in order to trace and

prevent the terrorists that we see and the atrocities happening, criminal activity. What do you say to that?

WALES: Well, that's a blanket answer that they give to almost everything, and it doesn't really address the serious questions of breaking

the law. We have a constitution for a reason, we have laws for a reason. They need to follow the law.

We have a long history in this country of institutions involving probable cause, warrants, et cetera. To short-circuit all that and spy on

everyone is just not accepted.

LAKE: Is there a way to balance user privacy and the needs? Because we clearly see organizations like ISIS, which are very adept at using the

internet, using social media to recruit, we know that that threat is real. Is there a way or a middle ground to balance that very real threat and the

privacy of users?

WALES: Absolutely. Absolutely. And these are the traditions of American law. There are traditions of gathering evidence, probable cause,

getting a search warrant. Those are the kinds of things that we do.

What we don't do is spy on the entire American public and sort of collect data on almost everyone who's using the internet in order to go on

fishing expeditions.

LAKE: Jimmy, do you think the tech industry is doing enough to enough to meet the government halfway? There have been complaints, especially

when it comes to social media, that people are not reacting quickly enough, they're not doing enough to take down video, to address some of these

recruitment or providing a platform. Is the tech industry doing its part?

WALES: I can't speak for everybody on the tech industry, but even this idea of taking down video is a very questionable place. We don't live

in a country where the government has a right to demand that private parties take down video.

LAKE: Jimmy, is the court of law the best place for this to play out? It's hard to tell who's an enemy, who's an ally. There's also as you're

suing the NSA, Twitter is suing the US government over how much it can disclose.

Wouldn't it be better for everyone if the tech industry, if companies like yours, were able to establish rules of engagement with the US

government? Wouldn't that be more productive? And what' standing in the way of that?

WALES: There's nothing standing in the way of that, and we're very happy to engage with the government on any reasonable grounds. That is not

even the issue here whatsoever.

I think we do need to move this out of the courts and into Congress. I think it's time to have a full public robust debate and to rein in the

security agencies who are completely out of control.

LAKE: Out of control, the US government as well? Do you think they're operating without --

WALES: They're clearly breaking the law. And so, they're exceeding the authority set forward by Congress, which is already really quite

extensive, and unfortunately. And this is one of the reasons we need to revisit the legislation, incredibly vague.

LAKE: For users out there, Jimmy, many users of Wikipedia, can you explain to them what's at stake? What do you feel is at stake here?

WALES: Well, what is at stake, really, is the open expression, the right of freedom of expression, unfettered, unmonitored by government

officials who may misuse that information. It is really important that we are free to express our opinions, to work together collaboratively to build

an encyclopedia without being spied on all the time.

It's that kind of chilling effect that is really reminiscent of the McCarthy era and is something that we moved away from a long time ago, and

we don't want to go back there now.

(END VIDEOTAPE)

LAKE: Hillary Clinton has broken her silence on the use of a personal e-mail account while she was secretary of state, saying she went for

convenience. Clinton says there were no security lapses, and she's turning over all documents that could be viewed as work-related, but she won't make

her private documents public.

That's not good enough for critics who say Clinton has created more questions than answers. Republican lawmakers plan on grilling her about

those private e-mails. Brianna Keilar reports.

(BEGIN VIDEOTAPE)

HILLARY CLINTON, FORMER US SECRETARY OF STATE: Very glad to hear, because I want it all out there.

BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Hillary Clinton addressing a week of controversy over the revelation she

used her personal e-mail for all official business while secretary of state.

CLINTON: I opted for convenience to use my personal e-mail account, which was allowed by the State Department, because I thought it would be

easier to carry just one device.

KEILAR: Adding that in retrospect, using official e-mail would have been smarter.

CLINTON: Looking back, it would have been better if I'd simply used a second e-mail account and carried a second phone.

KEILAR: Following a long-planned speech to the United Nations on gender equality Tuesday, Clinton assured reporters the e-mail server she

used was safe.

CLINTON: The system we used was set up for President Clinton's office, and it had numerous safeguards. It was on property guarded by the

Secret Service, and there were no security breaches. I did not e-mail any classified material to anyone on my e-mail. There is no classified

material.

KEILAR: As the State Department announced Clinton's e-mails would be posted on a public website after a several-month review, Clinton said her

e-mail system had not broken any rules.

CLINTON: I fully complied with every rule that I was governed by.

KEILAR: And said there should be no doubt an work-related e-mails might have been missed.

CLINTON: My direction to conduct the thorough investigation was to err on the side of providing anything that could be possibly viewed as

work-related.

(END VIDEOTAPE)

LAKE: Brianna Keilar reporting there.

Britain christened its largest cruise ship today. We speak with the man behind the launch, Carnival CEO Arnold Donald, after the break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

HER MAJESTY, QUEEN ELIZABETH II, UNITED KINGDOM: I name the ship Britannia. May God bless her and all who sail in her.

(CHAMPAGNE BOTTLE BREAKING ON SHIP)

(CROWD CHEERS)

(END VIDEO CLIP)

LAKE: Queen Elizabeth has officially named Britain's largest-ever cruise ship in a glittering ceremony in South Hampton, England. The

Britannia is capable of carrying more than 3600 passengers and over 1300 crew. It will go on its maiden voyage on March 14th on a two-week cruise

of the Western Mediterranean.

Well, the superliner weighs around 141,000 tons and is more than 300 meters long. It is owned by US conglomerate Carnival. Shortly before the

naming ceremony, Nina Dos Santos spoke to Carnival's CEO about the scale and scope of the new ship.

(BEGIN VIDEOTAPE)

ARNOLD DONALD, CEO, CARNIVAL CORPORATION: First of all, it's a beautiful day here in South Hampton for the naming ceremony for the newest

addition to our fleet, the Britannia in our P&O brand, one of our nine world-leading cruise line brands in our corporation.

This particular ship is the largest ship every built at 141,000 metric tons, dedicated to the British market for British cruisings for British

citizens. She's a spectacular ship. She has just so many wonderful public space features, incredible dining venues, a fantastic theater, all

dedicated to the British cruiser. So, we're very excited about the vessel.

NINA DOS SANTOS, CNN INTERNATIONAL CORRESPONDENT: And how important is the British cruiser as a market for Carnival as a whole?

DONALD: Two of our brands are based here in the UK. Cunard, of course, with the Queen Mary II, the Queen Elizabeth, and the Queen

Victoria. And then P&O. P&O is the largest. It sails more British cruise passengers than any other of our brands.

So, it's very important to us to be present here in the UK and to continue to attract more and more people to cruising. And we certainly

with the Britannia and the other ships in the P&O fleet look forward to exceeding guest expectations as we have in the past and for many years to

come.

DOS SANTOS: This isn't the biggest vessel, though. Instead, you've invested in things like an art collection that's reported to be worth just

over a million dollars, various luxury features here, and something like 75 percent of the cabins actually have their own balconies, which is quite

unusual.

So, how exactly are you positioning a ship like this? Is it more towards individual luxuries, things that people can't get on other cruise

liners, or size and scale and scope?

DONALD: Well, we listened to our current P&O guests and those who we'd like to attract as guests, and what they wanted was a really high-end

luxury hotel type feel, London luxury hotel.

In fact, we hired some interior designers, the Richmond Group, who've done places like the Langham and Intercontinental Park Lane, for example.

And listened to our guests and really have developed just a stunning presentation of public spaces and cabins.

So, it's very high-end, "This is the life," is the tag line, very high-end living at a very affordable cost. So, tremendous vacation value

with just fantastic experience.

DOS SANTOS: But it's an expensive vessel as well. It costs reportedly well over $500 million to build. How much do you need it to be

full? What kind of load factor do you need to try and make a profit or even break even for you?

DONALD: One of the wonderful things about cruising is that the ships generally do sail full. And so we have every expectation that this will.

And in fact, this ship for its maiden voyage sold out faster than any other maiden voyage we've ever introduced for our many vessels.

So, we don't anticipate it having difficulty filling the vessel, and we certainly expect it to truly resonate with the guests.

(END VIDEOTAPE)

LAKE: News, sports, opinion. It's all available on Twitter. And now, possibly, a plan to revive the Greek economy. We'll hear from the man

who has the ear of the Greek finance minister.

(COMMERCIAL BREAK)

LAKE: Hello, I'm Maggie Lake. There's more "Quest Means Business" in a moment when a Greek entrepreneur tells us how some of his comments on

Twitter caught the attention of the finance minister. And Fonterra's chief executive hits out at blackmailers who have threatened

to lace its baby formula with poison. Before that, this is the top stories we are following here on CNN.

France is mourning the death of three of its athletes. Authorities say they were among ten people killed in Argentina when two helicopters

collided in mid-air Monday. They were filming a French reality TV show. France has launched a manslaughter investigation.

U.S. President Barack Obama has criticized a controversial letter sent by Republican senators to Iran. The letter warns Tehran that any nuclear deal

could be easily undone by a future U.S. administration. Iran's foreign minister said the letter had no legal value.

(BEGIN VIDEOCLIP)

MOHAMMAD JAVAD ZARIF, IRANIAN FOREIGN MINISTER, VIA INTERPRETER: This is a propaganda ploy and bears no legal value. This shows how worried one

group is. There is no agreement in place and yet one group is speaking about its content. In any case, a propaganda move has begun with

Netanyahu's address to Congress, and this is another propaganda ploy.

(END VIDEOCLIP)

LAKE: Former U.S. Secretary of State Hillary Clinton says she did not break any rules by using her private e-mail address while heading up the

State Department. Speaking a short time ago, she said she used one device, quote, "for convenience." She also defended her decisions to store her e-

mail on a personal server.

(BEGIN VIDEOCLIP)

HILLARY CLINTON, FORMER U.S. SECRETARY OF STATE: The server contains personal communications from my husband and me, and I believe I have met

all of my responsibilities and the server will remain private.

(END VIDEOCLIP)

LAKE: Wikipedia has filed a lawsuit against the National Security Agency and the Department of Justice in the United States. The suit claims

the agency's mass surveillance of internet users is illegal and violates a right to privacy and freedom of expression.

Speaking to me on "Quest Means Business," Wikipedia founder Jimmy Wells explained what he feels is at stake.

(BEGIN VIDEOCLIP)

JIMMY WELLS, FOUNDER, WIKIPEDIA: It is really important that we are free to express our opinions, to work together collaboratively to build an

encyclopedia without being spied on all the time. It's that kind of chilling effect that is really reminiscent of the McCarthy Era, and it's

something that we moved away from a long time ago and we don't want to go back there now.

(END VIDEOCLIP)

LAKE: The host of "Top Gear" Jeremy Clarkson has been suspended by the BBC over what they are calling a fracas with the producer. They would

not give any more details on the incident other than that the 54-year-old controversial presenter will be on leave pending an investigation.

The Greek Finance Minister Yanis Varoufakis is getting advice from all sides - his country's creditors, Greek politicians and economists around

the world. Add to that the Twitterati. It seems Mr. Varoufakis is listening. It started with this tweet from a businessman to the Greek

finance minister. "The Onus is now on young entrepreneurs for propelling Greece to growth. Can you slip in some reforms to help us help.

That tweet got a quick response from the finance minister who said, "Send me your proposals asap." The man who started that exchange has promised to

do just that. His name is Sotiris Bantas. He runs a global software company. Earlier he told me Greek business holds the key to economic

revival.

(BEGIN VIDEOCLIP)

SOTIRIS BANTAS, ENTREPRENEUR: We need to change our mentality. Reforms are all about stabilizing the country fiscally which is very much

needed. But to use a business term, we also need to focus on our topline and in particular our topline growth.

And for this to happen, the Greeks need to learn or relearn how to make product - how to develop product and services that they can export to other

countries. This is one thing. Of course for this to happen, we need to reverse the brain drain. We need to stop losing brilliant minds that are

fleeing the country to go work somewhere else. So --

LAKE: Yes, well, you know - I just want to interrupt you for one second, Sotiris.

BANTAS: Sure.

LAKE: The Euro ministers meeting right now - there's been so much talk about the tension between Europe and Greece. The ministers, the

Troika says that more reforms need to be made - privatizations, labor market reforms, --

BANTAS: Yes.

LAKE: -- tax collection. These sound like business-friendly ideas. Does more need to be done? Do they have a point? How does the business

community feel about that?

BANTAS: Yes, indeed these are business-friendly ideas, but they're also very generic. I think we need to come up and they need to come up

with measures that are more specific and are creating - let's call it unfair advantage for Greek entrepreneurs and Greek companies - to use

another business term. And so for instance, we need to see incentives for foreign direct

investment into Greek companies and Greek enterprises. This needs to be somehow within the tax reforms that they're planning. For instance,

providing incentive for foreign companies and foreign investors to put money in Greek companies. That's -- I think that's one of the ways

forward.

LAKE: Yes, it sounds like weaving in incentives as opposed to punitive, which I think a lot of people feel like some of these measures

are - or at least that's the perception that's out there that needs to change. Sotiris, do you feel like this Syriza government has what it takes

in order to pull Greece out of this economic crisis?

BANTAS: Well, I'm not the expert on that, Maggie. Well, I - you know - we try - myself and all the other, you know, business people in Greece -

we try to be hopeful that with this new government - I mean, the previous government right as well, right? We have to give them credit for their

efforts and we - but at the same time we need to be very specific about what it is we need to, you know, have our, you know, make our businesses,

start businesses and businesses that can thrive. So, you know, we remain hopeful but of course this is very early and we

haven't seen any clear signs of intention to help Greek businesses. We're hoping this is going to change shortly.

(END VIDEOCLIP)

LAKE: Going head-to-head, the U.S. and Venezuela trade accusations, dragging relations between their countries to a new low. All that and more

after the break.

(COMMERCIAL BREAK)

LAKE: Nine foreign workers have been kidnapped in Libya. It's believed they're being held by ISIS-affiliated militants. The foreign

workers were working for an Austrian-owned oil services firm. They're from the Philippines, Bangladesh, Austria, the Czech Republic and Ghana.

CNN's emerging markets editor John Defterios has more from Abu Dhabi.

(BEGIN VIDEOCLIP)

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: The abductions of the nine oil service workers follows the brutal killing of 11 Libyan nationals

who were guarding the facility at the al-Ghani field in Central Libya. The attacks putting the advance of ISIS in Libya back into the spotlight and of

course triggering more chaos in the country's oil sector. The Libyan interim government strongly condemned the actions and went on to

say the international community should stop its silence over the events that are unfolding. The U.S. Joint Chiefs of Staff Chairman Martin Dempsey

reiterated his belief ISIS can be defeated in the region. The abduction of the workers taking place at the VAOS Oil Camp south of

Sirte, established back in the mid-1980s. VAOS is an Austrian oil services group with 11 permanent sites in Libya. In a statement, VAOS said it did

not know where employees were taken, but it is cooperating with the Austrian Foreign Affairs Ministry.

ISIS and Libya has taken a very different strategy from its advances in Syria and Iraq where it has tried to control oil installations. Militants

have hit four fields in Central Libya. So far the strategy is to inflict as much damage as possible.

Despite all the chaos, Libya's production from major fields in the east has been sustained with exports going from two ports near the border of Egypt.

March production is pegged at 400,000 barrels a day, double the level in February, but just a quarter of the output before the ouster of Muammar

Gaddafi back in 2011. The attacks led the Libyan National Oil Company to suspend production and

pull workers in 11 fields due to the absence of security. They say they warned VAOS to leave the area because of this two weeks ago. VAOS has not

responded for comment and now Libya is rekindling calls for a joint Arab military force. John Defterios, CNN Abu Dhabi.

(END VIDEOCLIP)

LAKE: Venezuelan President Nicolas Maduro has vowed to fight back at what I guess what he calls the `imperialist' United States. This was after

the White House placed financial sanctions on seven Venezuelan officials and said the current regime represents a security threat to the U.S. In a

speech Monday night, Mr. Maduro said he will be seeking special powers from parliament. This has drawn fierce criticism from the opposition who are

warning of a power grab. Venezuelan economy appears to be in free fall. Inflation is now the

highest in the world at a staggering 68 percent. This has pushed the government to implement some unconventional measures in a bid to prevent

things from getting worse. Rafael Romo explains.

(BEGIN VIDEOCLIP)

RAFAEL ROMO, SENIOR LATIN AMERICAN AFFAIRS EDITOR OF CNN WORLDWIDE: The president of Venezuela demonstrating on national TV how to use a new

fingerprinting machine. From now on, every trip to the supermarket will require fingerprint scans. Venezuelans buying even basic goods will have

to both show I.D. and place their thumbs on these machines.

NICOLAS MADURO, VENEZUELAN PRESIDENT: (SPEAKING IN SPANISH).

ROMO: Nicolas Maduro says his government will distribute 20,000 fingerprinting machines in the first phase. More will come. It's an

elaborate move to prevent hording. Venezuela has suffered from chronic shortages of basic food staples like milk and eggs for years. Even toilet

paper is scarce. The president blames scarcity on unscrupulous people who sell products

subsidized by the Socialist government across the border in Colombia at much higher prices. He also accuses the opposition of waging an economic

war to destabilize his government. Meanwhile, there's new diplomatic tension with the United States after

announcing last month Americans will now need a visa to enter Venezuela. The White House sanctioned seven top Venezuelan officials for human rights

violations and corruption. The situation in Venezuela, President Barack Obama wrote in his executive order, constitutes an unusual and extraordinary threat to the national

security in (AUDIO GAP).

(COMMERCIAL BREAK)

LAKE: In New Zealand, police have revealed a threat to poison infant milk formula. It's an apparent attempt to blackmail the government to

change its pest control policies. The CEO of one of the companies targeted - Fonterra -- has called the threat a despicable crime. CNN's David Molko

has more from Hong Kong.

(BEGIN VIDEOCLIP)

Female: Would you feed your child contaminated milk? I mean, no one's going to risk the baby's health for it.

DAVID MOLKO, CNN SENIOR PRODUCER: Across New Zealand, parents on edge after the government revealed a threat to milk products meant for the most

vulnerable.

Male: It's a form of eco terrorism without doubt.

MOLKO: New Zealand police say someone sent threatening letters late last year to global dairy giant Fonterra and to Farmers Industry Group.

Along with the letters -- packets of infant formula laced with poison.

Male: I want to reassure parents that every step possible is being taken to respond to the threat and to ensure the ongoing safety of their

food products.

MOLKO: Police say the person behind the messages threatened to contaminate milk powder with the potentially-fatal poison known as 1080 if

the country didn't stop using it for pest control by the end of March. Typically dropped by helicopter in pellet form and meant for possums and

rats, 1080 has a controversial history in New Zealand, with critics and environmentalists saying it has unintended impact on native wild life.

Authorities maintain it's used safely. Police say they're treating the threat as blackmail, not terrorism and in response, food safety authorities

and manufacturers including Fonterra say they have reacted quickly and decisively boosting supply chain security and testing some 40,000 samples

of baby formula. They say no trace of the poison has been found.

Male: If any product appears to have been tampered with - for example seals broken or punctured - then clearly it should not be consumed.

MOLKO: While the world's largest dairy exporter says its milk products are safe, there are questions about how this might impact New

Zealand's multi-billion-dollar industry. In 2013, Fonterra reported that several batches of powder had tested positive for a strain of bacteria that

causes botulism. Though it later turned out to be a false alarm, recalls were issued and countries across the region, including China, pulled

products from store shelves.

Male: This could be, you know, extremely damaging for New Zealand's exports offshore and it's not just dairy and it's not just infant milk

formula. Their whole reputation as an exporter of food is at risk.

MOLKO: While the government says it's very likely the threat is a hoax, they're still taking it seriously. And as to why it took almost four

months between when the letters were received and when the public was alerted, the prime minister says his first priority was to investigate the

threat and protect the supply chain. David Molko, CNN Hong Kong.

(END VIDEOCLIP)

LAKE: Corin Dann is political editor of TVNZ. He joins us now live from Wellington, New Zealand. Thanks so much for being with us, Corin.

This is so disturbing I think to anyone who hears this. How serious - I mean - it seems like the government is taking it very seriously. Do we

know exactly what they're doing to try to track this down?

CORIN DANN, POLITICAL EDITOR, TVNZ: Yes, absolutely. They - since they found out about it in November, they have swung into action across the

government and with the police so obviously the focus on trying to catch the perpetrator and a huge effort going in there (ph).

But it's not just the 40,000 tees sub (ph). All batches of the infant formula that have been produced since September last year that are being

tested. It is also the security around supply chain which New Zealand takes very seriously.

And so it's security in terms of physical security, security guides, etc. has been beefed up at manufacturing plants, supermarkets where most of

these products are sold are taking extreme measures with CCT Vision and that type of thing to make sure that they can really look for anything that

might show people tampering. Huge effort has gone into making sure that once the infant formula is

produced, that supply chain process is secure, and that's been the focus over the last couple of months.

LAKE: Yes, it certainly has. You heard that parent that was saying would you take a chance with your child? I think anybody who has a child

would say absolutely not. I'm sure many people are concerned across the board. Four months this has been going on. Do they have any leads or have

they narrowed it down at all? I mean, it seems like a long time without having, you know, at least some information of who could be behind this.

DANN: Well, the original letters did threaten to do this and go public at the end of March. So the government and the police say they'd

always decided from an early point they eventually would go public. Now there's a huge debate in New Zealand about whether that should have been

the case. There are people who point out that these types of hoaxes, these types of

scares happen quite frequently for food companies around the world and that it should've stayed private and they should've done the investigations that

way. But the decision for New Zealand was more tricky because of - as your

previous report noted - the botulism scare. The importance of this industry to New Zealand and to be seen to be front-footing it. And that is

what has happened here. As for leads on a possible perpetrator, I think the police are struggling a

bit here. They are hoping now that by going public, there will be pressure to - within the public - or somebody who knows something to push that

person forward to come forward so they can once and for all say that this is in fact a hoax.

LAKE: Yes.

DANN: Just a quick note on that 1080, it is highly contentious and there are very vocal and very strong groups in New Zealand who oppose it

and they certainly are saying they've got nothing to do with this, but it certainly raised that 1080 issue back to the fore.

LAKE: It certainly has and one would have thought they would have been the first ones that the authorities took a close look at. Corin, we

touched on this as well - this is an industry incredibly important to New Zealand's economy, isn't it?

DANN: Absolutely. Some people like to say we're a giant farm down here in the South Pacific where food is fundamental to our economic

fortunes, and in particular dairy. And in particular over the last few years, dairy products going into China - something like 20 percent of our

exports now go to China, we've got enormous amounts of money at stake here. And as an industry too - the infant formula industry - has really been

growing and expanding because that is a valuated industry. Most of the product that comes out of New Zealand, to be blunt, is put on a ship as a

powdered milk formula - powdered milk. These are the more high tech (ph) products - the infant formula products.

It's about a billion dollars in that category, and that's the real worry here and it is because you're dealing with babies. You're dealing with,

you know, things that are so fragile and we've seen scares before with melamine and also obviously the botulism scare. So no risk can be taken at

all. So that is why they had to make this very difficult decision I think to go

public because they need to be seen to be transparent -- that they are doing everything they can.

And I know from experience in China myself that that is appreciated by the Chinese, but nonetheless, I understand the authorities are ramping up some

measures to test on the borders. There's been no borders or bans put in place as yet.

LAKE: And as we know, China themselves have had many struggles with food security and food scares as well, so it is a really hot-button issue

for them. Corin Dann joining us. Thanks so much for filling us in and bringing us right up to date. We appreciate it.

A recap of the stock markets. The Dow ended the day down more than 330 points, erasing all of its gains for the year. The dollar has been getting

stronger and stronger and that's bad for U.S. companies who rely on exports.

Adding to the market woes, a drop in oil prices. The price of Brent crude fell over 3.5 percent on Tuesday. It was trading around $56.40 a barrel at

the end of the session. That was partly due to a rise in the U.S. dollar as crude is priced in dollars. Traders also blame high inventories and

ample supply for the price drop. The fall in oil caused energy stocks to tumble in the U. -

END