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Quest Means Business
Half Million People Sign Petition to BBC to Bring Back Jeremy Clarkson; Euro Heads Toward Parity With Dollar; Greece, Creditors Begin Reform Talks; European Stocks Rise; Sell-Off Just Before Close Sends Dow Lower; Most US Banks Pass Stress Test; "Blurred Lines" Lawsuit Leads to Damages; Copyright Lawsuit Shakes Music Industry; RyanAir Announces New Routes
Aired March 11, 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: No recovery for stocks. The Dow slides 27 points. It's Wednesday, March the 11th.
"Top Gear" turmoil. Fans erupt in protest as the BBC suspends "Top Gear" host Jeremy Clarkson. What the decision means for the brand.
Currency concerns as the euro edges closer to dollar parity.
And blurred legal lines. The copyright ruling stirs fears for the whole music business. I'm Maggie Lake and this is QUEST MEANS BUSINESS.
Good evening. BBC, bring back Clarkson. That's the message from hundreds of thousands of "Top Gear" fans. At this hour, more than half a million
people have signed an online petition asking the BBC to reinstate Jeremy Clarkson as the host of "Top Gear." Change.org told us it's the site's
fastest-growing petition ever.
The BBC suspended Jeremy Clarkson after he allegedly hit a producer. The suspension puts the future of the current "Top Gear" series in doubt. The
BBC says the next two episodes will not air.
The "fracas," as the BBC calls it, is hardly Jeremy Clarkson's first brush with controversy, and as Phil Black reports, the "Top Gear" presenter
doesn't seem too bothered this time around.
(BEGIN VIDEOTAPE)
PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT (voice-over): Suspended but still joking. Jeremy Clarkson seemed pretty relaxed leaving his London
home.
JEREMY CLARKSON, BBC HOST, "TOP GEAR": Seems I'm going to be able to get to the till the next two nights.
BLACK: People who don't like Jeremy Clarkson say he's frequently offensive, and they've got a long list of complaints. There was his dodgy
joke about truck drivers.
CLARKSON: It's a hard job. Change gear, change gear, change gear, check your mirrors, murder a prostitute, change gear, change gear, murder.
BLACK: His gags about striking workers.
CLARKSON: Thankfully, I'd have them all shot.
(LAUGHTER)
BLACK: Blind people weren't laughing when he said this about former British prime minister Gordon Brown, who only has sight in one eye.
CLARKSON: In England, we have this one-eyed Scottish idiot.
BLACK: And there have been repeated accusations of racism. This incident triggered a final warning from the BBC.
CLARKSON: Eenie, meenie, miney, moe --
BLACK: In this unaired "Top Gear" clip, Clarkson is accused of mumbling what he later described as the most racist word of them all. He insisted
he didn't use the word, but apologized profusely anyway.
CLARKSON: I was mortified by this, horrified. It is a word I loathe.
BLACK (on camera): Only now punishment, Clarkson suspended, the show pulled from the air, at least temporarily, because of a fracas involving a
producer. That's it from the BBC, no more details.
But if you look up "fracas," you get, "riot, brawl, fight skirmish," all of which suggesting the possibility that this latest controversy involving
Jeremy Clarkson involves more than just a few ill-chosen words.
BLACK (voice-over): British media says the man on the left is fracas victim Oisin Tymon, who appears to be enjoying Clarkson's company in a
happier time before the disagreement. Comments on Clarkson's working future exploded across the world on Twitter, including the hash tag
#BringBackClarkson. An online petition for the same cause quickly attracted support from hundreds of thousands of people.
CLARKSON: Hello.
BLACK: Clarkson's "Top Gear" co-host, James May, offered some support.
JAMES MAY, BBC CO-HOST, "TOP GEAR": In may ways, no. I've said many times before, the man is a knob. But I quite like him. It's all getting a bit
ridiculous.
UNIDENTIFIED MALE: What do you understand about what actually happened?
MAY: Not very much, I was blind drunk.
BLACK: "Top Gear's" often irreverent humor, led by Clarkson, has conquered much of the world. The BBC boasts of the show's hundreds of millions of
viewers in hundreds of countries. That's made the broadcaster lots of money. Any decision on Jeremy Clarkson's future will include serious
thought about its impact on earnings and ratings.
Phil Black, CNN, London.
(END VIDEOTAPE)
LAKE: So, after Clarkson's past antics, the BBC already had warning lights on its dashboard, but "Top Gear's" vast reach makes the latest event a
major headache for the network. Clarkson is intimately intertwined with the "Top Gear's" brand.
He's fronted the show for 22 seasons since "Top Gear" relaunched in 2002, 350 million people in more than 200 territories around the world watch "Top
Gear." And the BBC has launched spin-off shows in a number of countries, including the US and Australia.
The show's success has made it a major source of cash for the BBC. "Top Gear" brings the network $226 million in revenue each year.
Brian Stelter is CNN's media -- senior media correspondent, and he joins me now. Brian, this has got everyone obviously talking, and a lot of people
up in arms. It's a difficult situation when you have this happen to a top talent at a network when this is really one of their showcases.
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Absolutely it is. It's one of the biggest television brands in the world, and you can't say that about
very many shows. The BBC, of course, is a crown jewel in and of itself, but "Top Gear" is one of its crown jewels. And it's not just a BBC
program. It's seen, as you mentioned, with local versions in other countries as well.
So, it's a very difficult situation when a star of this caliber finds himself in a hot spot. We heard the prime minister Cameron bring this up
today. That is something you would rarely, if ever, see about any television host.
LAKE: So, what are the choices, really, for the BBC. Their reputation in many ways is at stake. Clearly, I'm sure, that they're torn about
replacing or permanently getting rid of him. Is it better for their reputation to take a safer option? Can the show survive without him? What
is the scenario and the conversation among top management right now.
STELTER: Well, at least to some degree, networks and producers court controversy with hosts like him, right? That's what they -- they know
that's what he's all about. But of course, there's a line, there's always a line. We see that in all of these situations.
For the most part, I would say it's almost always true in television, most shows are bigger than their hosts. Almost all shows are bigger than their
hosts. We're actually seeing that right now in the United States with Brian Williams and NBC "Nightly News."
There was a scandal about a month ago with Brian Williams going off the air. He was suspended because he was exaggerating some stories from his
past. Well, his fill-in, Lester Holt, has been doing just as well as Brian Williams was in the ratings.
Another example of the host not being bigger than the show. But this might be the unique show where that's not the case. This might be the exception
to the rule.
LAKE: And some people, it's been suggested, turn in for some of the humor, although some of it may have crossed the line. Is it easy for a network in
a pressure situation like this -- there are tickets, by the way, still on sale for the show.
STELTER: Right.
LAKE: Some people have an issue with that. Is it easy -- necessarily easy to find a replacement if that's the road they wanted to take? It's got to
be -- and who would want to fill those shoes, right?
STELTER: Well, if you're a network executive at the BBC, you have to be thinking at all times about who could potentially be in line for a job like
that. But it is almost impossible to fill a job like that.
We see that smart executives in television are thinking five to ten years down the line about replacing their biggest stars. And the BBC, of course,
has had to think about this in the past given the past controversies and dust-ups that he has found himself in.
But it's worth noting that as of 2012, he doesn't own part of the show anymore. He doesn't own any part of "Top Gear." He sold his stake in the
show to the BBC. That means ultimately this is about the BBC and this is their property even though he may -- it may be almost impossible to replace
him, they have to think about the franchise and not just the star.
LAKE: And they have to think about the overall network's reputation as well, right?
STELTER: Always.
LAKE: Brian Stelter, so good to catch up with you. Thanks so much on that. Well, "Top Gear" thrives on the strength of its presenters. One of
the key figures is the one who doesn't speak, though, and that is the anonymous racing driver known as The Stig.
(BEGIN VIDEO CLIP)
CLARKSON: Some say that in his wallet, he keeps a photograph of his wallet.
(LAUGHTER)
CLARKSON: And that in a recent race, even he was beaten by "The King's Speech."
(LAUGHTER)
CLARKSON: All we know is he's called "The Stig."
(APPLAUSE)
(END VIDEO CLIP)
LAKE: Now, some say our next guest was the Stig on the first two seasons of the show. And they would be right. All we know is that he's called
Perry McCarthy, and he joins us now. Perry, thank you so much for being with us.
You've been involved in the show, you know the players that we're talking about. Do you think this is the right decision on the part of the BBC?
PERRY MCCARTHY, FORMER "STIG" ON "TOP GEAR": No, I really don't. Big time no. At the moment, it's all alleged to have happened, so nobody's proven
anything. And then the BBC have made a catastrophic mistake, in my opinion, on standing Jeremy down and taking the show off the air.
But my -- I've got a solution to this. I would find the people who actually stood Jeremy down and taken the show off the air and fire them.
LAKE: Well let me ask you, though, do you think that all of his behavior has been fitting for a presenter on the show?
MCCARTHY: Jeremy's a figure that people really like worldwide. I think they like his humor, they like his stance. Jeremy's edgy, he's fun. All
right. It's -- everybody's got a different on line where to call it with Jeremy, and sometimes you kind of thing, whoa, that was a little bit close
for comfort. But that is the character of Jeremy.
He is integral to this show. He's -- the driving force is the engine. In my opinion, he's the attraction, he's a great talent. And even if "Top
Gear" did go ahead without him, I don't think it'd be anything like the show or as popular as it currently is.
LAKE: That's interesting. So, we were just discussing the management's got to be weighing this, and they -- when the situation happened last time,
they gave him a final warning. So this is a conversation they've been having, one has to presume. They've got to be thinking that somehow they
can go on without him. But you say that's not possible. Why exactly is that?
MCCARTHY: Well, they could say this really, really is now your final warning --
(LAUGHTER)
MCCARTHY: -- but they -- I mean, they could go on without him. But as your last guest was saying, the BBC now own the show. OK, fine. However,
that value diminishes if the international countries don't want to buy it because Jeremy's not on it anymore.
So, they've got themselves in a conundrum here. For me personally, it's two blokes -- if it did happen -- that have had a bust-up. It could have
been taken care of behind closed doors. I think the BBC have put themselves in a complete corner and made themselves look dumb.
LAKE: All right, well, we'll have to see what happens. We'll be watching closely. Perry, thanks so much for catching up with us tonight. Perry
McCarthy for us.
MCCARTHY: My pleasure, thank you.
LAKE: Well, talks to hammer out the nitty-gritty of Greek reforms are underway. We'll explain why the parties must first negotiate semantics
before politics. That's after the break.
(COMMERCIAL BREAK)
LAKE: The euro is edging dangerously close to parity with the US dollar. Quantitative easing in Europe is accelerating the euro's slide. It fell
more than 1 percent on Wednesday and is now at a 12-year low against the greenback.
Speaking earlier, the European Central Bank president Mario Draghi defended the bond-buying program. He said there is evidence it is helping to
protect Europe's weaker economies.
(BEGIN VIDEO CLIP)
MARIO DRAGHI, PRESIDENT, EUROPEAN CENTRAL BANK: We also so a further fall in the sovereign yields of Portugal and other former distressed countries
in spite of the renewed Greek crisis. This suggests that the asset purchase program may be shielding other euro area countries from contagion.
(END VIDEO CLIP)
LAKE: Talks between Greek finance officials and international creditors are underway in Brussels. A war of words -- or a war over words -- seems
to be brewing before they even begin negotiating reforms. First, "Troika" has become an unmentionable term. Greece would prefer its three creditors,
the EU, the ECB, and the IMF, be referred to as "the institutions."
It appears the sides have since settled on a new name. They're being called the Brussels Group going forward.
The word "bailout" itself has become a semantic hurdle as well. It's a real dirty word back home for the Greeks. "Bailout" is associated with
austerity and makes it look the government is caving.
And amidst all this, Greece has brought up the war. Prime minister Alexis Tsipras says Germany owes Greece more than $160 billion in Nazi war
reparations.
(BEGIN VIDEO CLIP)
ALEXIS TSIPRAS, PRIME MINISTER OF GREECE (through translator): The new Greek government has a goal, and that is why it encourages the Greek
parliament and the committee that is to be reestablished. We will approach the issue with the necessary sensitivity, a sense of responsibility and
sincerity, with an attitude of cooperation and dialogue.
However, we expect the same from the German government, for political, historical, symbolic, but also ethical reasons.
(END VIDEO CLIP)
LAKE: Kerry Craig is global market strategist for JPMorgan Asset Management, and he joins me now from London. Kerry, you hear all this, and
it doesn't fill you with a lot of optimism. For the ordinary folks out there, for all of us, how can we tell how much of this is political
rhetoric and how much is this a really deep divide that carries great economic risk for the continent?
KERRY CRAIG, GLOBAL MARKET STRATEGIST, JPMORGAN ASSET MANAGEMENT: I think a lot of what we're seeing at the moment is political rhetoric. We've just
started this negotiation process, which will take some weeks to complete, maybe months.
The real pressure comes not from the institutional lenders or not from the European finance group itself. The real pressure on Greece actually comes
within Greece. The fact that they are going to run out of money to fund their country, the fact that the banking system is quite weak and is
reliant on the ECB to prop it up in the meantime.
This is where the Syriza Party really is facing the greatest battle. They came into power really polling on reform of saying we're going to get rid
of austerity, we're going to have debt relief, and we're going to stay within the eurozone.
Which to the eurogroup finance ministers are all very mutually exclusive things. It's very difficult to achieve all of those things, and right now,
the Syriza Party isn't really winning on any of those fronts.
The only things they have managed to change is that the Troika can't be called the Troika anymore. This is going to be a very hard sell for Syriza
to sell back to its own party and also to the Greek population.
LAKE: Kerry, as we watch this happen, we're seeing such movements in currencies. We mentioned before people are now talking about the
possibility of euro parity with the dollar. We've talked a lot about the impact of the strong dollar and concerns it's had on this side.
What about the impact of the weak euro? Is that going to -- or to what extent will that help European economies that are trying to achieve escape
velocity, and even economies like Greece? Will it lend some relief?
CRAIG: The weak euro is what the ECB wants to achieve with its bond-buying scheme. It came out and said we're going to purchase 60 billion in bonds
every month out to 2016 in September, and doing so effectively what we're going to do is drive down the value of the euro.
That puts upward pressure on imports, it creates inflation expectations, and brings back a little inflation in the economy so that people won't
defer spending and want to spend now, creating that economic demand that the region so badly needs.
So, a weaker euro from their standpoint is by no means a bad thing. The fact that it is hitting down so sharply, perhaps, is not a function of the
fundamentals in the economy, but more a function of the fact that the market believes that it should go towards parity.
And there's so much momentum behind that at the moment rather than just what the ECB is doing, because their bond-buying program was announced back
in January. There hasn't really been any new information about it.
The market knew it was going to buy up 60 billion a month. They've started doing it on Monday, not to a huge extent so far, but the market wants the
dollar to go lower -- or wants the euro to go lower, excuse me, and that's really what's pushing it down.
I think whether it reaches parity or not will really be a function of how much profit gets taken on all those shorts who are bidding on a lower euro
and whether some of that gets to take off and you see the euro snap back a little bit against the dollar.
LAKE: Yes, it's an excellent point, Kerry. And a lot of people are saying it should have never gotten as high as it did in the first place. Maybe it
should have always been at parity, so we're going to have to watch that closely. Kerry Craig from JPMorgan Asset Management, thank you.
Stocks in Europe closed higher. The declining value of the euro fueled rallies in Paris and Frankfurt. The CAC pushed up over 2.25 percent, and
the Xetra DAX rose nearly 3 percent for a record closing high.
Gains were more modest in London. The outlier here, of course, is Greece, losing 2.5 percent as those economic reform talks got underway.
Stocks in the US were sitting pretty for most of the day, hoping to put Tuesday's whopping loss in the past, but a sell-off just before the close
on Wall Street canceled those plans. The Dow ended down about 30 points.
The Federal Reserve says 28 of the 31 big banks that must take part in its annual stress test have passed. This test was a review of bank's capital
plans. The two banks that failed were US subsidiaries of big European banks, trust operations of Deutsche Bank and Santander. Bank of America's
plan has been approved as long as some deficiencies are fixed by September.
After the break, stop me if you think you've heard this one before. Turns out "Blurred Lines" may sound familiar for all the wrong reasons and could
now change the music industry forever.
(BEGIN VIDEO CLIP)
(MUSIC - "BLURRED LINES" BY ROBIN THICKE)
(END VIDEO CLIP)
(COMMERCIAL BREAK)
LAKE: One of them is a timeless soul legend, the other one says he was just trying to pay tribute. Now the careers of Robin Thicke and Marvin
Gaye will be forever intertwined after a judge ruled that "Blurred Lines," the song of the summer two years ago, is too similar to one of Gaye's songs
from the 1970s. Take a listen and decide for yourself.
(BEGIN VIDEO CLIP)
(MUSIC - "BLURRED LINES" BY ROBIN THICKE)
(MUSIC - "GOT TO GIVE IT UP" BY MARVIN GAYE)
(END VIDEO CLIP)
LAKE: It took a court in California more than a week to reach a decision on this copyright case. Now it says Gaye's family should get more than $7
million in order to adjust the copyright infringement. Thicke's lawyer has told CNN he plans to appeal.
Copyright claims like this aren't unusual, and there's a big difference between being inspired by something and copying it. "Stay With Me" by Sam
Smith won record of the year at the Grammys this year, but some of the royalties are going to Tom Petty after he noticed how similar it was to his
song, "I Won't Back Down." Take a listen.
(BEGIN VIDEO CLIP)
(MUSIC - "STAY WITH ME" BY SAM SMITH)
(MUSIC - "I WON'T BACK DOWN" BY TOM PETTY)
(END VIDEO CLIP)
LAKE: Tom Petty was actually pretty understanding about it all, saying these things happen. The guitar legend Joe Satriani wasn't so forgiving.
He sued Coldplay after their song, "Viva La Vida" and its similarity to his song, "If I Could Fly."
(BEGIN VIDEO CLIP)
(MUSIC - "VIVA LA VIDA" BY COLDPLAY)
(MUSIC - "IF I COULD FLY" BY JOE SATRIANI)
LAKE: Satriani said, "it felt like a dagger through my heart" when he heard the similarity. He sued Coldplay, though that lawsuit was latter
dropped.
Well, joining me now is Oliver Herzfeld. He's chief legal officer at brand consultancy Beanstalk. Thanks so much for being with us, Oliver. It's so
hard, I think, for all of us when we listen. Listen, we weren't in that courtroom, most of us, we're just hearing these snippets of it. But
clearly the music industry is very concerned. Do you think this is going to set a precedent?
OLIVER HERZFELD, CHIEF LEGAL OFFICER, BEANSTALK: It certainly may. It's going to encourage people to bring suits when they see the size of this
judgment. It's certainly going to encourage more suits like this.
LAKE: Yes, and I think that's the worry. We already see in technology that there are these what they call patent trolls, that people just sort of
look for opportunity, and whether there's a valid case or not they bring it because they know even the threat of going to a jury trial or going through
the legal process is going to end up being very expensive and companies just will settle.
I think that's what people in the music industry are concerned about. How hard is it or easy is it to win these cases? It sounds to me like this is
very subjective stuff.
HERZFELD: It is very subjective stuff, and one of the key elements under the law is substantial similarity, where similarity is in the ears of the
ordinary members of the intended audience.
And as you can see from this case, I think that there's a lot of people who think that these are -- the two songs are very similar, and there's a lot
of people who feel like they're not similar at all. So, it's sometimes very difficult to prove these cases.
LAKE: Right. So, this was a win this time. It doesn't mean even if they all went to jury, you would come out like this.
In court, when they're having this discussion -- we saw a lot of articles, and amongst our own conversations today around the water cooler, a lot of
people were saying, what's really intellectual property, and what's when you pay homage to something? What is something -- what's inspiration?
What's the difference? Does that come up in court? Do the lawyers sort of have to prove that point? How do they deal with that?
HERZFELD: The way they deal with it -- well, the first thing you should know is that the overwhelming majority of these cases settle long before
you get to the steps of the courthouse. For example, Sam Smith and Tom Petty and other very famous cases, like Vanilla Ice versus Queen and David
Bowie, and Led Zeppelin.
All of them settle, settle, settle. And Led Zeppelin settled many times. There were many disputes over its songs, and many of them settled. So, the
overwhelming majority settle. And when they do make it to the courthouse, many times they don't make it all the way to the jury. Many times the
judge will cut it off at the summary judgment level.
So, this is kind of unusual that it went all the way to the jury. You don't have all that many cases that do that.
LAKE: Yes.
HERZFELD: George Harrison's case against the Chiffons that sued him "My Sweet Lord," and "He's So Fine." That made it to the jury, and he wanted
to settle. He wanted to settle, said wow, and was very anxious. In the end, it went all the way to the jury. There was a $587,000 judgment
against him, and he immediately paid it.
LAKE: Yes.
HERZFELD: But -- so, it's --
LAKE: It's interesting, isn't it? Lawyers are involved, pride is involved. I'm just wondering, because everything seems derivative.
Everything sounds like everything to me sometimes.
Do you have to -- in order -- is the burden, I suppose, on the original artist, the one who predates, or is it on the new one? Do you have to
prove -- how do you prove something's totally original? That sounds impossible.
HERZFELD: Well, you're raising excellent points. The burden is on the plaintiff, and art in general is one thing building upon the other. And
you really touched on the heart of this whole case is whether this is a tribute or homage or playing against a genre, or whether this is something
that's copying.
And that's really the tension. And it's not at all clear. And there's different elements in the law. The first hurdle you have to get to is you
have to prove copying. And within that one element, there's different ways you could do that.
Sometimes you could do it with direct evidence, if someone admits that they copied it, but that's very unusual. So then if they don't admit copying,
you have to use circumstantial evidence. Use circumstantial, there's again, two items that come into play.
LAKE: Yes.
HERZFELD: One is access and the other is similarity. The more access you have to a prior work, the less similarity you have to prove in order to
prove copying.
LAKE: Right.
HERZFELD: The more access, the less similarity. It's kind of inversely proportional. In this case, he had plenty of access. Williams said this
was part of the soundtrack of his youth --
LAKE: Right.
HERZFELD: -- so you didn't have to do that, but you have to then show that they're similar. And then once you prove copying through this acts of
similarity, then you go on to substantial similarity. That's the next hurdle.
LAKE: Oliver, this is why you are the lawyer and I am not. But one thing I'll say is it's been a very interesting peak behind the sort of curtain of
the music industry and everything that goes in to try to make a song. We certainly hope it doesn't stamp out creativity. Thank you so much for
coming in today.
HERZFELD: Thank you so much for having me.
LAKE: Pleasure for having you.
Well, together they've run five of the most powerful economic groups in the world. The head of the WTO is amongst many leaders visiting the German
chancellor in Berlin today. His next stop is live on this program after the break.
(COMMERCIAL BREAK)
(COMMERCIALS)
MAGGIE LAKE, BUSINESS ANCHOR AND CORRESPONDENT FOR CNN INTERNATIONAL, FILLING IN FOR RICHARD QUEST: Hello, I'm Maggie Lake. There's more "Quest
Means Business" in a moment. I'll be speaking live with the director general of the World Trade Organization on the risk to the global economy
and how to bring a ghost airport back to life. Ryanair is about to find out.
Before that, here are the top world news stories.
ISIS is retreating from Iraqi forces in Tikrit but militants have gone on the offensive in Romani (ph). Officials say ISIS attacked the city from
all directions firing mortar rounds and rockets and setting off multiple car bombs. A desperate search is on for 11 missing U.S. service members
who are presumed dead after their Black Hawk helicopter crashed during a nighttime training exercise.
Seven special operations Marines and four soldiers were onboard when the chopper went down in Florida. Human remains are reported to have washed
ashore close to the Eglin Air Force Base.
The police chief of Ferguson, Missouri has resigned. The move comes just one day after the city manager stepped down and follows the departures of
two police officers and the city's top court clerk. The city government is going through a major upheaval following a scathing report from the
Department of Justice that said the officers saw Ferguson residents as quote "sources of revenue." The report said African-Americans were
disproportionately targeted.
More than half a million people have signed a petition in support of BBC presenter Jeremy Clarkson. The "Top Gear" host has been suspended after an
alleged fight with the producer. Today he made light of the situation in front of reporters saying he was off to the job center.
The International Monetary Fund has approved almost $18 billion worth of aid for Ukraine over the next four years in order to prevent its economy
from collapsing. Ukraine has promised to reforms its economy to secure the loan.
(BEGIN VIDEOCLIP)
ARSENIY YATSENYUK, UKRAINIAN PRIME MINISTER, VIA INTERPRETER: Despite all attempts of the Russian Federation, we managed to convince the world that
we are conducting reforms and the International Monetary Fund took a decision to grant financial aid to Ukraine based on the reforms alone.
(END VIDEOCLIP)
LAKE: Australian Prime Minister Tony Abbott has been criticized for suggesting that taxpayers should not subsidize those who are making a
lifestyle choice to live remotely. Indigenous leaders have called his remarks offensive and inappropriate. It came as he backed a plan in
Western Australia to close more than 100 remote communities and move more than 1,000 people.
(BEGIN VIDEOCLIP)
TONY ABBOTT, AUSTRALIAN PRIME MINISTER: There are some limits to what we can reasonably expect of the taxpayer when it comes to supporting these
choices. Now, I am absolutely passionate, absolutely passionate and have been for all my public life and I try to ensure that we do the right thing
for aboriginal people and that means getting the kids to school, the adults to work and the community safe.
(END VIDEOCLIP)
LAKE: German Chancellor Angela Merkel says things are slowly getting better for Europe's economy. She's been hosting a summit of the world's
top economic leaders. It was a who's who in Berlin with the heads of the IMF, World Bank, OECD, WTO and International Labor Organization all
attending. Speaking to reporters after the meeting, the IMF chief Christine Lagarde said there's good economic news on the way for a change.
(BEGIN VIDEOCLIP)
CHRISTINE LAGARDE, MANAGING DIRECTOR, IMF: For once in a long time, there are clearly some relatively better news on the horizon of the advanced
economies. And this has not happened in a while. We clearly have a rebound of the U.S. economy, an improvement and good growth showing in the
U.K., and the Euro area is also now turning the corner.
(END VIDEOCLIP)
LAKE: All this optimism comes as Europe deals with crises on three different fronts - Greece, Ukraine and Russia. As we mentioned earlier,
talks are underway in Brussels over Greece's next round of funding. Greek leaders had the meeting with the artist formerly known as the Troika, but
that term is now apparently out of favor.
Meanwhile, the IMF has approved a new bailout for Ukraine worth more than $17 billion. This was the scene in Donetsk today as residents hit by the
recent violence lined up to get food parcels provided by a local billionaire. As that crisis continues, the U.S. has added more Russian
names to the sanctions list including a bank that allegedly moved into Crimea after it was annexed by Russia.
Well the head of the World Trade Organization, Roberto Azevdo met with Angela Merkel today and he joins me now live from Brazil. Thank you so
much for being with us tonight. We just heard Christine Lagarde talking about optimism, good economic news on the way. Do you agree with that
assessment and how will that help trade talks?
ROBERT AZEVEDO, DIRECTOR GENERAL, WORLD TRADE ORGANIZATION: Well there is certainly good news on the way and good elements I think, good parameters.
If you look around, you can always find for example lower oil prices which is important for the global economy. It may hurt the exporters of oil
somewhat, but for the economy - the global economy in general - that's good news. Long-term interest rates are low so that we have a little bit of
room for monetary policies to help world growth. So, there are some good news out there and we should capitalize on that.
And of course, with the growing world economy with more stable conditions and no fears of the imminent recession or anything of the kind, it's easier
to negotiate global trade deals.
LAKE: It does and against that backdrop, for that optimism there are as we pointed out in the intro to you, may risks that remain. And one of the
things a lot - we've been talking about a lot on this program are currencies. We've seen big moves in currencies. In fact, some analysts
say it's sort of an unspoken currency war going on as countries around the world race to devalue. Certainly that will make it so much harder to make
progress on these trade talks.
AZEVEDO: On trade - whenever you're discussing trades, currency is an issue. But most of the times, you have to plan the negotiations to make
sense in the long-run. If you're talking about negotiations which are looking only at the immediate future at something that is going to be
prevailing for the next year or two, then you're going to fail.
And currency movements are always going to be there. It's a matter of how quick they are or how accentuated they are, but they will be there. So I
don't think that curr4ency fluctuation should be a determining factor for trade deals.
LAKE: The situation between Moscow and Brussels is at a low point, many would say. They're entangled in many trade disputes, and now on top of
that of course is a very serious situation in Ukraine. Russia is a member of the WTO. What's your stance on that?
AZEVEDO: Oh so far Russia has been playing by the rules. They have - they have defended their interests like everybody else. When they were not
happy, they initiated trade disputes in the WTO which everybody else does. So I'm not a pessimist in terms of figuring that these geopolitical
tensions will necessarily lead to an impossible situation in terms of negotiations of trade negotiations.
So far, these tensions have existed and we have managed to live with them.
LAKE: I appreciate the fact you say you're not a pessimist. I don't think you can lead the WTO without being an optimist. The latest round of trade
talks have been going on for - dragging on some would say - for 13 years. Why should we have any confidence that we're any closure to having
resolution?
AZEVEDO: Well, you know in the last few weeks actually we made more progress than over the year of 2014 altogether - the 12 months. I think
for the first time you see members truly talking to each other, truly saying what they can do and what they cannot do. That doesn't mean we have
an agreement, that doesn't mean that we know how we are going to bridge the gaps, but for the first time in many years, you have - you can see in the
WTO in Geneva people talking to each other and trying to find solutions. And for that, there's no price for that.
LAKE: Roberto Azevedo, head of the WTO joining us tonight from Berlin. Thanks so much. Do come back on the program again.
Well it is a lesson on cyber safety while on the road.
(BEGIN VIDEOCLIP)
RICHARD QUEST, CNN ANCHOR AND CORRESPONDENT: How long would it take somebody here to actually log in?
Male: Someone here?
QUEST: Yes.
Male: Not very long.
(END VIDEOCLIP)
LAKE: Richard finds out why business travelers are vulnerable to hackers. That's next on "Quest Means Business."
(COMMERCIAL BREAK)
LAKE: If you are a jet-setting business traveler, your chances of being hacked skyrocket whether it's your credit card that's vulnerable or you
might log on to unsecured Wi-Fi network somewhere around the world. Just last week, swanky hotel chain Mandarin Oriental confirmed its credit card
systems had been hacked. In this week's "Business Traveller" update, Richard traveled through South Korea to find out how they're tackling this
constant threat.
(BEGIN VIDEOCLIP)
QUEST: These are the White Hat Hackers. They are the good guys. Learning to hack into computer systems to defend rather than destroy. They're
learning to protect South Korea's networks from North Korea and countless other attackers.
In the light of the Sony hack, everyone now knows their role is essential. And here is where they train - the Korean Information Technology Research
Institute. They are not modest of kitry (ph) and punches aren't pulled.
DR. JOSHUA JAMES, CYBER SECURITY EXPERT, BEST (_____): Here is where we pick as potential minds in Korea to learn about information security, how
to protect networks, how to do digital forensic investigations, how to find bugs in software and then secure those systems.
We're looking at everything, so national security, military, anything to do with securing businesses, law enforcement.
QUEST: On this trip, I'm traveling with two smartphones, a tablet and a laptop. That's a lot of technology to protect. First up, the smartphone.
JAMES: Well if you trust the telco in that company - or in that country - then it's more or less reliable, but you are surfing websites, right? And
your phone could potentially be vulnerable to certain types of attacks via websites.
QUEST: In this war game, there are no easy battles.
JAMES: Information security is all about risk, right? So how much risk are you willing to assume? So on these devices, if that's all of your data
that you need to do everything you do in life, I guess. Then, the risk is very high connecting to networks that you don't necessarily trust.
QUEST: Then we have the big boy which - do you mind. I can't even remember the password now.
JAMES: We can log in for you.
QUEST: How long would it take somebody here to actually log in?
JAMES: Someone here?
QUEST: Yes.
JAMES: Not very long.
QUEST: Really?
JAMES: To log in or get all your data?
QUEST: Both.
JAMES: Five minutes, three minutes.
QUEST: To log in even without the password?
JAMES: Yes. If I have physical access to you device, I have your data. Just there's basically no protection.
QUEST: Clock's running. Give it one hour.
JAMES: Does anyone want to hack into a Windows 8 system?
(LAUGHTER)
Female: I'll do it.
QUEST: Don't break (inaudible). It's all making me a little nervous. While she's doing that, her are five simple rules to follow that will keep
your risk level low. First, know the value of your data. Use a separate work laptop while traveling, where possible use your VPN - virtual private
network and encrypt your data - local files, files in the cloud, even your whole operating system. If you're not using a VPN, avoid Wi-Fi. So, back
to my laptop and how did she do?
(Inaudible)
QUEST: Not time to be the object. It's safe. See, I told you it pays to practice safe traveling.
(END VIDEOCLIP)
LAKE: Budget airline Ryanair has announced a raft of new European routes, including one to a so-called ghost airport in Spain. This is Castellon
Airport near Valencia on the Mediterranean coast. It was built without government approval and left unused for four years. The airport became a
symbol for Spain's reckless spending on big projects just as the recession hit.
It finally opened two months ago. Ryanair's chief marketing officer Kenny Jacobs spoke to Nina dos Santos about the new Spanish route and the brand's
wider ambitions.
(BEGIN VIDEOCLIP)
KENNY JACOBS, CHIEF MARKETING OFFICER, RYANAIR: It's a good opportunity for us. We'll be flying this route from Stansted to Castellon because
there'll be demand at both ends. So there would be people in the U.K. who want to go to that part of Spain on vacation and there'll be people from
that part Spain who would want to come to the U.K. We've - you know - we've been a very - we're Spain's number one airline and we have been for a
number of years.
So we're always looking at new opportunities that come in interesting parts of Spain.
NINA DOS SANTOS, NEWS ANCHOR AND CORRESPONDENT BASED IN LONDON FOR CNN INTERNATIONAL: Euro dollar reaching parity. How's that affecting a
business like yours?
JACOBS: The biggest impact for us would be in the medium term because we buy our aircraft in U.S. dollars and we buy fuel in U.S. dollars. Now we
are 90 percent hedged on fuel and we will also be hedged on the dollar to the Euro rate.
So we would rather have the certainty in terms of managing those two key lines in the P&L rather than have the uncertainties. So, but you know, it
doesn't impact us this year or next.
DOS SANTOS: Let's talk about your branding strategy here. Over the last year or so, Ryanair has embarked upon a concerted effort to be viewed as a
nicer airline. How has that gone down for you and your customers?
JACOBS: It's worked very well. We've launched the `Always Getting Better' program which is a series of 18 initiatives this past year to make the
experience of being a Ryanair customer better. It's worked very well. I would judge it by the fact that we've gone from 81 to 90 million customers
this year, and this coming year we're forecasting that we'll do 100 million customers. It's given customers a better experience of being a Ryanair
customer in the air, a better website, two bags the customers can now bring board, allocated seating while keeping the lowest fares in Europe, and
that's what our customers want.
DOS SANTOS: Are we seeing a change in what the customer wants? They also want courtesy, manners, flexibility from an airline. As you mentioned
there the baggage allowance has changed. Is that what they'd have rather than competitive prices?
JACOBS: And the customers - what customers want - will always change a little bit. I think there are some absolute solids. We've become the
biggest airline in Europe because we've had the lowest fares. So I think the biggest thing customers want is just the lowest fares. And with an
average fare of 46-year-olds versus European average of 163, that's the one great thing that we have that our customers love.
I think what customers want more of is better websites, they want an app so they can make bookings on the move. They want very much a functional
experience. If you're flying short-haul in Europe, it doesn't need to be that special. Customers don't want to love that experience, they want a
reliable airline that has the best fares, that has the best choice of destinations.
DOS SANTOS: But you also think you're getting into the long-haul market, transatlantic as well.
JACOBS: Yes, we are. It's something our customers always ask us, and I think as you see what's happened in Europe over the past ten years as low-
cost airlines have taken more and more of the share and the national flag carriers have retreat (ph) its long-haul, the next natural thing is that
low-cost airlines including ourselves - once we can get the wide-bodied aircraft - will start to do transatlantic. So that is our plans in about
four years' time.
DOS SANTOS: Will you be buying wide-bodied aircraft already? Do you have many on order? You've got a fleet of about 320, but obviously you're
geared towards European routes - the short-haul flights.
JACOBS: Yes, we've - we have a great opportunity here in Europe without doing long-haul with 320 aircraft in the fleet today as you mentioned.
We've 380 additional 737s on the way in the next nine years. That will allow us to grow to 160 million - 100 percent growth in the next nine
years.
In addition to that, the long-haul opportunity is something that is quite exciting. We're always speaking to air manufacturers, so once we can get
the wide-bodied aircraft, we will pick the right point of the calendar to operate a transatlantic service.
DOS SANTOS: Will you use the name Ryanair?
JACOBS: Haven't decided that yet. Probably our thinking at the moment is that we would create a second brand which would clearly be part of Ryanair
Group, and that would be the best way to do that. The reason we would do that would be in the aircraft we would probably have standard class and
probably have a type of premium economy class.
DOS SANTOS: In a world of touch screens and mouse clicks, one piece of low-tech is enduring. The humble typewriter is making a comeback with the
new generation. That's coming up next.
(COMMERCIAL BREAK)
LAKE: Google is following Apple into the world of storefront retail. The tech giant has opened its first physical shop. It's a store within a store
inside an electronic retailer in London. It'll offer Android phones, Chromebook computers and interactive experiences. Google says it wants to
offer customers, quote, "A unique try before you buy" experience.
But even as smartphones and tablets take over the world, the typewriter -- that's right, you remember these - hangs on to its place. Machines like
this one aren't quite ready for the junk pile or the museum just yet as our Claire Sebastian found out, the typewriter is making a comeback with
younger users.
(BEGIN VIDEOCLIP)
(SOUND OF TYPING)
Male Voice Over: This is the best thing that's happened to typing since electricity.
CLAIRE SEBASTIAN, CNN CORRESPONDENT: In the 1960s, typewriters like the IBM Selectric was the pinnacle of office technology.
PAUL SCHWEITZER, OWNER, GRAMERCY TYPEWRITER: We still sell these, we of course service them.
SEBASTIAN: Hard to believe this same IBM Selectric is still being used today.
SCHWEITZER: Law offices, accounting firms, book publishers - people are still used to typing an envelope or a label.
SEBASTIAN: Even the New York Police Department still uses them.
Male: Currently some forms are still required to be typed, so we still do have typewriters.
SCHWEITZER: This is an old-fashioned ribbon that they don't make anymore.
SEBASTIAN: At Gramercy Typewriters in New York, the old machines are even clicking with younger fans.
SCHWEITZER: Typewriters have been making another resurgent. People are asking about typewriters, they're coming in.
SEBASTIAN: It's keeping Paul and his son Justin knee-deep in the machines. Gramercy sells up to 30 a week and they can service ten to 15 a day.
They're cheaper than most modern computers. A working IBM costs about $400.
But of course the older they get, the more expensive they get. This Underwood is just under 100 years old and it would probably sell for around
$600.
Male Voiceover: I'm writing you on an Underwood portal.
SEBASTIAN: Frank Underwood in the Netflix series "House of Cards" is a fan as is actor Tom Hanks - a regular customer here.
SCHWEITZER: He comes in from time to time, yes.
SEBASTIAN: Hanks loves typewriters so much, he's even launched an app that replicates the experience. While 55 years in the business has left Paul
with blackened fingers, he's not ready to retire. And neither, he says, is the typewriter.
SCHWEITZER: There's still a need for a typewriter and there'll people still going to want a typewriter. And I could see this going on for years.
SEBASTIAN: Claire Sebastian, CNN New York.
(END VIDEOCLIP)
LAKE: There's still more to come on "Quest Means Business." Stay tuned to find out how the plunging euro isn't doing the trick for some German
companies.
(COMMERCIAL BREAK)
LAKE: Time for a final check on the market. Stocks in the U.S. were higher for most of the day hoping to put Tuesday's whopping loss in the
past. A sell-off just before the close on Wall Street canceled those plans though. The Dow ended down about 30 points as you can see.
The euro edged closer to parity with the U.S. dollar on Wednesday. It fell more than one and a half percent against the greenback. One euro is now
worth $1.05 - that is a 12-year low.
On the energy markets, the price of oil has broken its losing streak. Brent crude prices are up by more than 2 percent, and that means the gap
between Brent and West Texas crude is getting wider. Oil prices in the U.S. came under more pressure after news that oil stockpiles there continue
to grow.
And that is "Quest Means Business." Thanks so much for watching. I'm Maggie Lake. Stay with CNN.
END
