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Quest Means Business
Markets Rally, Dow Turns Positive for 2015; "Business on the Move"; Emirates CEO Warns against Altering "Open Skies"; Swiss, U.S. Investigations into FIFA Press On; Nobel Scientist under Fire for Sexist Remarks; Egypt Steps Up Security in Luxor; The Problem of the Carry-On; Angry Bird and Lego Working Together on Toys. Aired 4-5p ET
Aired June 10, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[16:00:00] RICHARD QUEST, CNN HOST (voice-over): From the market, the Dow Jones is up more than 200 points. It's now back over 18,000 again, of 1.33
percent for a midweek session. A strong but firm gavel on the midweek session, Wednesday, the 10th of June.
Tonight: back in the black. U.S. markets stage a supersized rally.
Emirates Airlines is warning Washington over the battle in the skies. The Emirates chief exec Sir Tim live on this program.
And as Egypt foils a major terror attack, we're going to hear from the tourism minister tonight on how he's keeping visitors safe.
We have a very busy hour together. I'm Richard Quest and I mean business.
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QUEST: Good evening. It's a midweek session and the markets snapped their four-day losing streak and they've done so in a spectacular style. The Dow
has just closed the best part of 250 points up. And if you look over the course of the year, it's now positive for the year so far.
Join me at the superscreens and you will see exactly what we are talking about. This is how the market just closed; it's a gain of 234 points. But
bobbing around 18,000 ,just shows you in the last few seconds of trade, it's just gone back down again, it might just recalibrate to 18,000.
But if you look at what happened, it was the energy stocks that did the trick. They rallied alongside oil prices. U.S. government bond prices are
also falling. So let's start with the Dow Jones. Bring in Paul La Monica to join me and to put some perspective --
(CROSSTALK)
QUEST: Now here is the Dow.
What was the influence here? We are just about 18,000. That's a very strong gain of some 1.3 percent.
What was the influence?
PAUL LA MONICA, CNNMONEY DIGITAL CORRESPONDENT: You mentioned energy, but it was also banks and tech stocks that really did well, Goldman Sachs and
JPMorgan Chase, big winners today. I think everyone's hoping that a Fed rate hike is going to be good for banks. But then with techs, they've just
been beaten up in a couple -- for the past couple of days.
QUEST: Right. But this idea that -- well, let's look at year-to-date, or six month-to-date. There you -- that starts to put -- but look at this.
We have this big dip in June. Now that's the fear of rates.
LA MONICA: Exactly.
QUEST: But now rates still likely to go up this year with the market's back.
So why?
LA MONICA: I think that we're maybe finally getting accustomed to the rate hike is going to be in September. You had that strong jobs report and that
really is cementing in a lot of people's minds that a rate hike is finally coming. I think a lot of this fits and starts that we've had, the angst
has been about, oh, is it going to be June? No, it's not going to be June. Is it going to be September? No, it's not going to be September. Maybe
it's 2016. It was the uncertainty about the timing of the rate hike. So now it's more certain.
QUEST: Right. So the acceptance that it's going to happen is basically let's live with it and let's deal with it.
LA MONICA: Definitely. And you can't ignore overseas as well. What's going on in Europe is definitely leading bond prices down and yields up
here as well, German bond yield finally back above 1 percent. You have the hopes that Greece may get saved after all if Germany's going to compromise.
QUEST: The Nasdaq: here's the Nasdaq today, similar story. It went up; it made its gains and it stayed there throughout the session.
What was the driving force?
LA MONICA: You have enthusiasm again about big tech. Apple was a winner. Microsoft, Intel, IBM; Netflix is a huge winner, top gainer in the S&P 500
today. Stock has more than doubled this year. People just love that company. Probably overvalued but right now momentum investors don't --
(CROSSTALK)
QUEST: -- same again with you here. You have -- this click, this fall down here was very sharp and very pronounced.
LA MONICA: Yes, again, the rate hike fears but also valuations. That's definitely something that is a big problem with tech stocks, more so than
the broader market, a lot of people worried about the Netflixes and the Facebooks of the world, are they overvalued?
QUEST: OK. So putting all this together for me as we draw the strands of the market, what do you make of it?
LA MONICA: I think that right now we're probably just going to have more volatility unfortunately. We think the rate hike is coming in September.
But this is a data-dependent fad, a data-dependent market. It's trite and clich,, but until we know for certain that that rate hike is coming, just
more volatility.
QUEST: More volatility --
(CROSSTALK)
QUEST: -- many thanks for that.
Here we have the way the market has traded. And it's not often that you see this sort of day. I showed you what was happening. We started the day
when it was just barely -- well, when we started the program, it was over - - then we went back. But we have held 18,000 on the Dow Jones.
What were the issues that helped make the day move forward? I promise you one thing: it's a case with "Business on the Move."
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[16:05:10] QUEST (voice-over): Welcome to the new "Business on the Move," where we see Netflix stock soared to record highs, up 3.7 percent.
Shareholders have approved a proposal that could clear the way for a split and Marriott Hotels is adding Netflix to hotel rooms as well.
As for Zara, the big shopping company Zara from Spain, up 28 percent. It saw profits soar, everything, apparently was all to do with rapid expansion
and a weak euro.
Now if you're looking in London, police are searching for an item just like this: there are reports that a manuscript of "Fifty Shades of Grey," the
prequel, has been stolen. The book itself is due for release next week as indeed the prequel is now going to be the sequel.
Talk about sugary drinks, sugary drinks about to get slapped with health warnings like this one, what does the warning say? It says "Drinking
beverages with added sugar contributes to obesity, diabetes and tooth decay."
In other words, this warning in San Francisco, the law still needs the efforts of the mayor's signature to go into effect. It's a case of what
you're seeing is "Business on the Move." And as we continue...
As we continue after the break from "Business on the Move" to chief executives on the move, this is Sir Tim Clark of Emirates. He will be
joining me in the C suite to talk about what his speech to the Wings Club.
Come and join me, sir.
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QUEST: We're back, QUEST MEANS BUSINESS. The chief executive of Emirates is warning that if the U.S. scraps its "open skies" agreements, foreign
airlines may have trouble flying into the UAE.
Sir Tim Clark says if "open skies" is scrapped, there could be new anti- trust concerns at play for all the U.S. carriers. At this week's IATA AGM, the international -- the airline association, the chief executive of
American Airlines, Doug Parker, told me it's his responsibility as an airline CEO to bring this issue to bear.
(BEGIN VIDEO CLIP)
DOUG PARKER, CEO, AMERICAN AIRLINES: You know, this is an issue that we believe has the potential to have a profound impact on our airlines, on the
U.S. commercial aviation business and on the people we employ. And we are obligated to go fight for all those things.
And in this case, some may have other views, we felt very strongly that indeed you know, what we're doing is right and that what -- and that these
fights and the potential for flights that fly to the United States from other parts of the world will be subsidized by governments, is going to
have a big impact on the U.S. airline industry.
(END VIDEO CLIP)
QUEST: Sir Tim Clark, the president and CEO of Emirates, joins me here in the C suite.
You didn't launch yourself out of the chair when you heard. This is your speech that you have to the Wings Club here in New York today.
You called the U.S. claim "stuff and nonsense," an extremely dodgy 55-page dossier, which indeed this is it. And you go on to warn that basically we
could see the rise of a new international aviation model which would be out with the old guard, in with the vanguard.
What do you mean?
[16:10:03] SIR TIM CLARK, CEO, EMIRATES: Well, I think as a result of everything that's been going on over the last couple of months, three
months, the allegations that have been made against the Gulf carriers, which are manifestly incorrect, but -- and there has been a polarization of
the aviation community with regard to what's been going on here. So you see many of the existing alliance structures starting to fracture and there
is a possibility of new arrangements coming into place.
QUEST: Are you now fearful that the U.S. government might actually agree and -- the merits, but they might requirements to open consultations with
the UAE and Qatar?
CLARK: No, I'm not of that mind at all. I believe that once we have submitted our proposal, our rebuttal of everything that's been said,
including what has already gone into the U.S. government dossiers and dockets that they will take a slightly different view.
QUEST: So essentially -- and I've sort of read this several times over the past few months -- essentially the allegations are that you get letters of
credit, that the fees that you pay at your airports are too low to recoup the cost of the airport, that there's common ownership, the accounts are
dodgy and that you don't transact at arm's length with donata (ph) and all the other organizations.
Do you transact at arm's length?
CLARK: So as I said earlier, that's all complete stuff and nonsense. We are totally transparent. We always have been.
QUEST: You transact at arm's length?
CLARK: Absolutely. And we've been certified as doing so by the international auditors. So as I said, our financials are absolutely clear
and transparent. You can test anything.
I've also invited organs of the U.S. government to come down to Dubai, examine our books and satisfy themselves that they can see that we do not
do anything that is illegitimate, illegal or whatever. It is all totally above board.
QUEST: So but the U.S. carriers -- and I was at IATA and there is a fundamental fissure now in the industry, which it knows who believe the
U.S. is right and those who believe that you are the future model.
The U.S. -- how does the U.S. in your view get this so wrong then?
What's going wrong with the U.S.?
CLARK: I don't think the U.S. is getting it wrong at all. I think they're being led down a path which is a tad misguided. It's based on false
suppositions and allegations, which need to be dealt with obviously. And they are dealing with them in the best way they can.
(CROSSTALK)
QUEST: But these allegations about the Gulf Three have swirled for as long as I've covered aviation and I suspect since longer since you've been at
Emirates. They've always said something smelly going on with those airlines when you run a bloody good airline and the food's magnificent and
the planes are brilliant. But something dodgy in the accounts.
CLARK: Well, I guess you're right. We've had to deal with this for many years. And we've addressed it successfully for many years and we will
continue to address it successfully for many years to come because I don't suppose it's going to go away.
All I can say is that for 23 years, Emirates has been disclosing its accounts. It's been congratulated on the quality of its financial
statements, the veracity of the financial statements. And there is absolutely no reason to doubt that we do anything but operate our company
on a fully commercial basis.
QUEST: Is it likely this also becomes a geopolitical issue? I'm thinking obviously CENTCOM's space there. There are strategic, there are global
security issues, terrorism issues between these governments.
Is it likely that the governments in the Gulf would say, all right, you want to stuff our airlines...?
CLARK: No, I don't believe it'll get to that at all. I believe that we will argue the case in front of the U.S. government departments on the
basis of the merits of our particular case. I think once we have finished that exercise, everybody will be satisfied that we are right and what has
been said about us by the U.S. big three legacy carriers is fundamentally wrong.
We do not adversely affect their business because, frankly, they don't fly to our region. American Airlines doesn't operate in the Middle East,
Africa, West Asia, Indian subcontinent at all. So how can we possibly be doing damage?
QUEST: I need to talk to you about one other area: FIFA. You're looking remarkably prescient from having pulled out from stopping a global sponsor
of FIFA.
Do you feel that -- you obviously feel justified you saw something that the others didn't.
CLARK: Well, I won't say that we saw something that others didn't. What we are particular pleased that we're not in that space at the moment. And
the commercial terms of FIFA's offering to us for continuance of our sponsorship just didn't stack up in any shape or form.
QUEST: But what are the commercial reasons?
Or did you just not like the smell of the way they do business?
CLARK: You know, there were concerns in other areas. That's as far as I will -- I'm prepared to go on that. But certainly, primarily it was
because we were asked to be paid -- to pay a lot more than we had been paying and when we did the return on investment analysis, even though it is
the largest sports tournament in the world, it wasn't going to stack up for us.
QUEST: What do you -- now that Blatter's going, would you be looking to go back in again if the terms were right?
[16:15:00] CLARK: If the terms were right, yes, I'm sure we would. It is something that we left with great reluctance. Obviously any major sponsor
would. But if things are sorted out in FIFA and we get a commercial offering that is as good as it was in the old days, then, yes, sure, we'd
go back and look at it, seriously.
QUEST: But there has to be -- because obviously what we have found -- and let's face it, I'll be quite honest, Tim, you're the first -- all right,
previous sponsor, former sponsor, CEO who's prepared to talk on the record. Everybody else is running for the hills.
CLARK: Well, look, I can't speak for them. I would just repeat what I said, we are glad we're not in the space at the moment because of the
fallout over the last few weeks. It is a big pity; the big loser, of course, is football. Let's hope that we can get it back onto some kind of
track. It becomes the beautiful sport that it is. The sponsors are back in competing against each other to get onto the tournament because it is a
hugely competitive battle to get that kind of exposure. But it's worth it.
QUEST: Between FIFA corruption, Gulf Three, big three allegations, I tell you, you've got your work cut out for you.
CLARK: Oh, well, we can deal with it.
(CROSSTALK)
CLARK: No, no.
QUEST: All right. Good to see you. Thank you --
(CROSSTALK)
QUEST: -- now the Swiss office of the attorney general has confirmed to CNN that it has now seized and is analyzing computer data from FIFA
headquarters. FIFA says it will postpone the bidding process for the 2026 World Cup amid the investigation.
Speaking earlier, the general secretary, Jerome Valcke, hit out at the media, calling for his head. Mr. Markey said he had nothing to do with the
$10 million payment to the Caribbean football union connected with South Africa's winning bid.
(BEGIN VIDEO CLIP)
JEROME VALCKE, FIFA SECRETARY GENERAL: The file was given to the ethics committee of FIFA as it was given to the audit and compliance committee of
FIFA. None of the chairmen of both of these committees have found any wrongdoings and anything would justify to blame FIFA's administration or to
blame the secretary general FIFA, to blame me. Nothing.
So I'm sorry, I don't know what to say more than that. I have no more answer about this case, has no more thing to say. I mean, you have decided
that, after Blatter, I have to be the cut, to be -- the head to be cut, fine.
(END VIDEO CLIP)
QUEST: "WORLD SPORT's" Don Riddell is at the CNN Center, joins me now.
Don, when we look at that, I mean, look, everybody's now jumped into the fray.
DON RIDDELL, CNN CORRESPONDENT: Well, yes. I mean, Jerome Valcke had to spend a lot of time defending himself yet again today while he was in
Russia, talking about how as far as he and the Russians sports minister are concerned, the 2018 World Cup will go ahead as planned. But this would be
another significant developments or at least evidence that these twin criminal prosecutions against FIFA continue with the information now that -
- information has been seized from the head office and reportedly from the top men, Valcke and Sepp Blatter.
QUEST: One question that I'm confused -- and it doesn't take much to confuse me on this subject -- but one question I am confused about, does
FIFA have the legal right to withdraw either of those in the event of proven corruption?
RIDDELL: Well, that's very, very interesting. I mean, we heard Domenico Scala talking about this the other day. And he was the first senior FIFA
official to say that actually they would have the right, if it could be proven that there was corruption in the bids for Russia 2018, Qatar 2022.
Of course, you can imagine, Richard, what that would unleash in terms of legal proceedings and counter suing back onto FIFA. It would be a
monumental undertaking to actually take those tournaments away, especially when you consider how much Russia and Qatar have spent building those
stadiums, putting the infrastructure in place, all based on a document that they would assign to FIFA, saying you've got the World Cup in those years.
So potentially, I suppose, theoretically, it could happen. I think in practice it would be very, very difficult.
QUEST: And I hope you were listening to Sir Tim Clark and what he was saying from Emirates. He says that they didn't like the commercial
arrangements but they would be back in the ring if they were -- if things got better.
But it's interesting. None of the other sponsors have gone anywhere near as close as speaking publicly, which I think speaks volumes for Emirates.
RIDDELL: Yes, although to be honest, he didn't really say very much, did he? I mean, he played as they wanted too much money and we weren't
prepared to spend that much money; however, sponsoring the World Cup and 22 men on the pitch is absolutely what we would want to be doing because it's
a fabulous tournament. But clearly he's relieved that they don't have to deal with any of the fallout and the mess right now because people who are
sponsoring FIFA right now, their names are associated with just the most unholy of messes, which is just going to get worse and worse.
QUEST: All right.
[16:20:00] Don Riddell, who is at CNN Center, thank you, sir.
Now a Nobel Prize-winning scientist is under fire for sexist comments. He said he can't work in labs with women because they cry and fall in love.
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QUEST: A Nobel Prize-winning scientist is apologizing for sexist comments he made about women working in laboratories. Now he's an admitted
chauvinist; he's Tim Hunt and he was addressing a convention of female scientists and journalists in Seoul.
So what did he say? He said, "Let me tell you about my trouble with girls. Three things happen when they are in the lab: you fall in love with them,
they fall in love with you and when you criticize them they cry."
Hunt apologized for offending anyone, saying he meant the comment as lighthearted and ironic.
Dr. Emily Grossman is a science teacher and advocate for women in science and joins me now from London.
Dr. Grossman, you restrained yourself admirably from launching yourself out of the chair as I was reading that script.
But you've heard these sorts of things before. Look, I've got three highly qualified professional sisters, who all work as director and managing
director level and they would all tell me that they've heard all of this sort of stuff before.
DR. EMILY GROSSMAN, SCIENCE TEACHER: Absolutely. This is an old story. Women have been being told since the Renaissance time that our brains, our
skills are too small to house a powerful brain, that exercising our brains would shrink our ovaries. But the thing is we've come back from that.
We've come an awful long way back from that.
But unfortunately, slightly flippant and irresponsible comments like this don't do a great service to helping us encourage more young women into
science and engineering and mathematical subjects.
QUEST: Why?
GROSSMAN: Why?
(CROSSTALK)
QUEST: Well, I'm just going to put it in a point of view since (INAUDIBLE).
I mean, those sorts of comments are pretty awful in any industry, whether it be the pub, the media or in a scientific environment. They probably
have no place. Well, they don't have any place, I would agree.
Why is it worse in science?
GROSSMAN: It's no worse in science than in any other industry. The issue with science is that we desperately need more female scientists coming up,
taking science subjects at university and coming up in science careers. We need that in all subjects but particularly in science, because women have
been underrepresented in that area for so long. And it's always been seen as subject that's more for boys than it is for girls.
And my work as a teacher and as an advocate for this, just to help to encourage young girls to know that there is a place for them in science
careers, that it's not just the boys and to actually nurture them and give them support and give them confidence to go on into studying it.
And unfortunately, comments like this, just the fear is that it would make people feel that actually science isn't for them because it's an
environment that they just don't want to go into if they're seen as negatively stereotyped because of feminine characteristics, like crying.
QUEST: Right. Let me just, again, put the other point of view -- I can feel my email box about to explode as I go down this road.
But you'll bear with me, I'm sure.
[16:25:01] Some would say -- I can hear some viewers saying, oh, come on. He was being humorous. He's a man of a certain generation. He's won a
Nobel Prize. Everybody should lighten up a little.
GROSSMAN: He's in a position of responsibility there. He's in a position of authority. And I agree, you know, flippant comments, jokey comments,
but people will listen to them. And it's a very fragile environment where classically it's been underrepresented by women for so long and young girls
are very sensitive to those kinds of stereotypes, those kinds of lack of role models, helping them and supporting them and encouraging them to say
actually there's a place for you. Science is for girls. Science careers are for girls. And you're not going to get intimidated or, at worst,
bullied if you're going to go in to this environment.
Now I'm not saying that he would do that. I'm saying it was just rather silly of him to make those kinds of comments, which could be interpreted
and represented to all of the people who are going to be listening to him out there.
QUEST: Well, I need to apologize. I think I mispronounced your name. It's Dr. Grossman. But anyway, since we've now been on television
together, I think we know each other well enough that I can call you Emily. Please call me Richard.
Thank you very much for joining me this evening.
Right. There we are. QUEST MEANS BUSINESS, we're continuing our coverage this evening.
An attack thwarted at one of Egypt's most popular tourist sites. Now fast- thinking police officers were able to stop the would-be bombers. Egypt's tourism minister, he's joining me on the program (INAUDIBLE) what he's
going to do -- next. QUEST MEANS BUSINESS.
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QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in a moment, when I'll be asking Egypt's tourism minister about stepped-up
security after a failed attack on a tourism hotspot.
And IATA thinks it has a solution to the age-old question of where to stow your hand luggage. I'm going to tell you where it can go.
Before all of that, this is CNN and, on this network, the news always comes first.
(BEGIN VIDEO CLIP)
QUEST (voice-over): The United States is sending 100 more troops to Iraq, in their words, "to train, advise and assist joint forces fighting ISIS."
The U.S. says the additional personnel will not have a combat role. Instead, they will work with Iraqi forces at a base in Anbar province as
they gear up for a major offensive to retake Ramadi.
Pope Francis has met the Russian president, Vladimir Putin, at the Vatican. It's the first time since 2013 that the two men have met. Earlier, the
president met with the Italian prime minister, Matteo Renzi, in Rome, where they discussed the crisis in Ukraine. Mr. Putin says both sides, both
leaders, agreed to find a peaceful solution.
(BEGIN VIDEO CLIP)
VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): The prime minister and I also set up concerns about the crisis in Ukraine and the
fact there's no alternative to a peaceful settlement in Russia. And Italy wants to emphasize that we're in full implementation of the Minsk
Agreements.
(END VIDEOCLIP)
QUEST: The Swiss office of the attorney general has confirmed to CNN it has seized and is now analyzing computer data from FIFA's headquarters.
FIFA says it will postpone the bidding process for the 2026 World Cup. FIFA's secretary general J,r"me Valcke has hit out at the media calling for
his head, saying he had nothing to do with a $10 million dollar payment to the Caribbean Football Union connected with the South Africa winning the
2010 bid. A worker at a prison in upstate New York is helping investigators after the escape of two convicted murderers. Investigators believe the woman had
planned to act as a getaway driver for the men. She apparently changed her mind at the last moment. The police say the men have headed to the U.S.
state of Vermont. The Texas police officer caught on video throwing a teenage girl to the
ground at a pool party has resigned. Eric Casebolt has not been charged. This case remains under investigation. The police were responding to calls
about a fight when the incident occurred on Friday. The police chief says his city's policies and trainings do not support
Casebolt's actions.
(BEGIN VIDEOCLIP)
GREG CONLEY, MCKINNEY, TEXAS POLICE CHIEF: Eric Casebolt has reigned from the McKinney Police Department. As the chief of police, I want to say to
our community that the actions of Casebolt as seen on the video of the disturbance at the community pool are indefensible.
(END VIDEOCLIP)
QUEST: Egypt's tourism minister says security is being stepped up after an attempted attack on one of the country's most popular tourist sites. Three
men armed with explosives tried to get the Karnak Temple in Luxor. The police confronted them. One attacker was killed when he blew up his
explosives. Another was shot dead by the police, the third was injured. Islamist militants have been increasingly targeting attractions in Egypt.
As Ian Lee now reports, the militants are increasingly targeting the tourism industry itself.
(BEGIN VIDEOCLIP)
IAN LEE, CNN CORRESPONDENT: Egyptian authorities thwarted a potential devastating attack in Luxor. Three militants tried to enter the Karnak
Temple with guns and explosives. Hundreds of tourists visit the site daily. An alert policeman stopped the men near the entrance. Two militants were killed and one injured in the
incident according to the Ministry of the Interior. Five people, including civilians, were injured at (AUDIO GAP) health ministry. No tourists were harmed and nobody claimed responsibility.
This is the first deadly attack on the Luxor tourist site since 1997 when gunmen killed 62 people, most international tourists.
In a statement, Egypt's minister of tourism Khaled Rami said, "The government of Egypt places the highest priority on the safety of tourists
in our country, we have enhanced security measures in place at all our sites and we continue to take every measure to ensure that no harm comes to
anyone visiting Egypt." This attack comes just a week after gunmen shot and killed two police near the Great Pyramids. The targeting of tourist sites represents a major
escalation by militants. Until recently, they've almost exclusively targeted Egyptian government
officials and security forces, killing hundreds of policemen, soldiers and even civilians caught in the crosshairs since the overthrow of Islamist
President Mohamed Morsi in July 2013. It's not known who's behind the violence, but in a post last month on its official Arabic website, the Muslim Brotherhood appeared to endorse a call
to arms by urging followers to quote, "Resist this coup by all means until the fall of the regime" and asserted the quote, "legitimate right to self-
defense." Tourism is a major source of income for Egypt which has been struggling since the 2011 revolution. After this attack, it's likely to struggle a
little longer. Ian Lee, CNN Cairo.
(END VIDEOCLIP)
QUEST: Tourism minister Khaled Rami joins me now on the line from Luxor. Minister, thank you for giving us your time this evening.
The core question - what more can you do to enhance security and give tourists a feeling of safety?
KHALED RAMI, EGYPTIAN TOURISM MINISTER, LUXOR, EGYPT: I think what happened today shows how the security forces in Egypt are working, they're
extremely efficient, they were able to foil this attack and kill two of the terrorists and the third one is injured as you said in your report which is
right. [16:35:11] As a matter of fact, there are now consideration of even enhancing more of those security measures to go further away from the
perimeter of all tourist sites to include a much bigger - a much bigger -- radius.
QUEST: Right. But the issue here of course is obviously one is exceptionally grateful and glad that you thwarted the attack. But you
don't want the attack to even be started in the first place. That's the danger for tourists. They say, 'Well, they may thwart the attack, but I
don't really want to be there if an attack's about to take place.'
RAMI: We have to look at it from another perspective. Terrorist attacks are logistically something which is extremely difficult and which is
something that takes lots of preparation and also needs a huge budget. So I don't think that something like that is a common thing,
That's why we, the Egyptian governments, are able to enhance security in all touristic sites and around our tourists, I feel that they could be very
safe in Egypt.
QUEST: The country has done a remarkable job of restoring your tourism numbers. They will almost be back at record levels despite - for want of a
better word - government issues or issues of revolution - whatever you want to call it, Minister. Your numbers have come back. And that's a testament
to the strength of tourism as an industry, isn't it?
RAMI: It is. Tourism is a very resilient industry, and as a matter of fact, in the first five month of this year - from January to May - we
witnessed an increase in tourist numbers to Egypt by 9 percent compared to the -
QUEST: Right.
RAMI: -- same periods of last year.
QUEST: Are you -
RAMI: And also the -
QUEST: -- forgive me, are you seeing numbers coming back at Cairo? Because obviously the Red Sea, obviously (Shah Mel Sheik), that has been -
never been - affected. And now of course you've got these areas, but what about Cairo?
RAMI: To tell you the truth, the occupancy rates in the hotels in Giza in May were 50 percent and in Cairo which the area we call Greater Cairo was
45 percent.
QUEST: We now look at the situation in the region - whether it's ISIS or whether its - well any of the other disputations (ph) - any of the other
terrorist activities - they increase the refugee crisis, the Jordanian crisis - whatever it is, the region - put a regional hat on for me with you
will as to how the region can portray an element of safety and security when frankly most of the news concerns bombs, bullets and death as a
result.
RAMI: You know, Richard, we made this mistake in the 90s. I remember times when the Egyptian government said that terrorism is not confined to
Egypt and not confined to the Middle East. Terrorism is a global threat. I need that we need that we all work together. We are all in the same
boat, we have to work together to fight terrorists. It's not confined to the Middle East alone.
QUEST: And as it's not confined to - it may not be confined to the Middle East alone - I'll take your point on that. And certainly if you look at
North Africa and if you look at other parts of the world - even parts of Asia - yes, you're absolutely correct.
But the perception - that's your difficulty, Minister, isn't it? It's the perception.
RAMI: I know it is the perception that terrorism stems from Islamic countries which is something that we have to fight. Not - the problem is
that people are generalizing the whole thing. We in Egypt are against terrorism. Most of the people in the Islamic world - I would say 99.9
percent - are against extremism because extremism is something extremely bad.
QUEST: Right.
RAMI: Extremists will turn into terrorists. If they don't turn into terrorists, they will at least try to persuade others to turn into
terrorists. And I need - I need - a statement from the Western world to say that extremism should be -
QUEST: Right.
RAMI: -- fought and not only terrorists.
QUEST: Minister, very good of you to come on the program tonight, sir. Thank you very much. I know it's been a busy day for you.
RAMI: Thank you so much.
QUEST: Thank you.
RAMI: Thank you, Richard, 'bye.
QUEST: Egypt's minister of tourism joining me.
Now let's assume you are traveling and you have decided to go - it doesn't really matter where you're going. The one thing you've really got to
decide is whether to check your bag or whether to try and heave it into the overhead compartment.
New regulations could make that size of that bag standard. In a moment.
(COMMERCIAL BREAK)
[16:42:12] QUEST: Welcome to the check-in area for Q Air where we are going to address a problem almost every passenger faces - getting carry-on
luggage into the overhead bins. Now, carry-on luggage, sometimes it can be truly small and carry-on - no
problem with that. Other times it could be carry-on - well, carry-on, carry-on - and then you've got very large carry-ons which won't fit in but will go overhead.
Now IATA - the International Airline Transport Association is trying to make things easier for us all (ph). It's come up with standard guideline
for carry-ons. One line, one standard for everybody. The problem is the new size really takes all of them and is smaller than the current largest carry-on which means those of us who've got large
carry-ons may have to buy smaller carry-ons if you want to get on to the checked baggage.
So far the guidelines are voluntary, several international airlines say they will sign on once they get the bags. On this month's "CNN Business
Traveller," we've been flying in America. I've been crisscrossing the USA. I've been road testing the four major American carriers - American, Delta,
Southwest and United. I've been flying hub to hub, meeting the airline executives, finding about
the investments they're doing flying in America. Because the truth is U.S. airlines are much better than their reputation precedes them.
Here's where I've been flying from - if you take. We flew from Love Field to Chicago Midway on Southwest. Then we went on United from O'Hare to
Dallas/Fort Worth. From Dallas/Fort Worth we took Delta to Atlanta. And then we from - I beg your pardon - American - and then Delta from Atlanta
up to LaGuardia. So, flying in America. Deliberately we chose routes of around two/two and
a half hours, we deliberately didn't allow the airlines to put us on transcon routes where they have nice, big lying-flat seats. We wanted
typical everyday flights in America. Now to look and see the first flight. It was American Airlines.
(BEGIN VIDEOCLIP)
QUEST: Hello. Good thank you. The new American has gone further than most in reinventing themselves.
JEFF PLANT, VICE PRESIDENT, DALLAS/FORT WORTH HUB, AMERICAN AIRLINES: This is the Admiral's Club, terminal D, one of four clubs here at Dallas-Fort
Worth. We want to be great again, we want to be number one again. 16:45:00] And we have new airplanes that have the same amenities on them
going domestically than international. They have video screens, they have internet, they have mood lighting, they have a really good feel to them
even though you're only going to Austin, Texas.
QUEST: So, whether you're flying to Austin or L.A., American believes the domestic market is key.
SCOTT KIRBY, PRESIDENT, AMERICAN AIRLINES: For (ph) historically in the domestic market, we competed mostly on price. Today we can compete on
product as well. Seventy percent of our revenue comes from the domestic market and our best
customers. Even those that are flying the long-haul international routes and paying premium fares to fly in first and business class typically spend
a lot of time flying domestically and are flying us internationally because they're on our frequent flyer program domestically.
QUEST: What are the priorities?
KIRBY: The premium experience. So we've announced a $2 billion investment in the premium products of first class - the transcon product that we have,
the lounges. But we're also investing in the entire product.
QUEST: It's time to put one of those planes to the test.
Male: Hey, how are you doing?
QUEST: Hello, how are you?
Male: Thank you.
QUEST: Thank you very much. Up here it's all new American. The evidence of this increased investment is obvious as soon as you step onboard. Brand
new seats with up-to-date technology and a completely refurbished cabin. In fact, the whole structure has changed. The U.S. carriers have gone
further than, say, even the Europeans in breaking up the cabin into different classes. For instance, American calls it main cabin extra. It's
at the front of economy, there's more leg room and it's reserved for those who pay are the frequent flyers.
KIRBY: Historically it was just first-class and coach and those were the only two. But first-class can be a great product, but then you can have
more comfort economy, you can have maybe even more segments in coach where customers can pay a little bit more and get a better product.
Customers that care about price and that want to have the best price can still get the lowest price. And customers that want more service, that
want more leg room, that want more amenities can pay for that and get those. But it's a customer choice.
(END VIDEOCLIP)
QUEST: Scott Kirby of American Airlines. We'll be road testing the rest of them - United, Delta and Southwest.
Now, what happens if you merge Angry Birds with Lego? We'll show you after the break.
(COMMERCIAL BREAK)
QUEST: Markets across Europe rallied on this Wednesday's trading session. If you take a look at the number, you'll see exactly the strong
performance. Two percent up on the Xetra DAX, 1 and 3/4 is in Paris. In London it was the governor of the Bank of England - Mark Carney - who's
addressing the financial finest tonight, calling for the tougher measures against bankers who are found to have been broken the law at the city's
speech. Shares in Standard Chartered are up 4 percent. After a challenging few years, the new chief exec Bill Winters says he will make banks' capital
strength his priority. The company behind Angry Birds is hoping to turn its fortunes around as it
signs a deal with Lego to make irritable, avian toys. The toy release is scheduled to coincide with the release of (LAUGHTER) - "Happy Birds," the
movie next year. [16:50:07] The chief executive of Rovio joined me earlier and I asked him, looking at the partnership, why bring Angry Birds and Lego together?
What's at the heart of it?
(BEGIN VIDEOCLIP)
PEKKA RANTALA, CEO, ROVIO: Lego is all about innovation and creativity and so it's Angry Birds. So that's what we share in common. On the other
hand, Lego is endorsing that creativity from construction perspective, whereas I think our entry point is a joyful destruction.
On the other hand, Lego is a very much physical, good space experience and the Angry Birds, we are very digital native brand. So bringing digital and
physical together, I think together we can have something that's - some magic for the consumers.
QUEST: Yes, well that's the core - bringing digital and physical together.
RANTALA: Absolutely.
QUEST: But when you bring digital and physical together, what are you left with? Pieces of Lego that look like Angry Birds? Because that's not
terribly imaginative. So what's the end product going to look like?
RANTALA: Well of course this means in practice that next spring 2016, Lego will launch throughout their entire worldwide distribution Lego products
based on the Angry Birds movie characters and all around the world, you know, ranging all relevant price points. So they are Lego blocks based on
Angry Birds characters. But of course at the same time like I said, so we are looking forward at the ways we can combine the digital and the physical experience and we are,
I said, hatching some cool things for the consumers in practice --
QUEST: Right.
RANTALA: -- so that they can have a journey between physical and digital world.
QUEST: Is it fair to say - as I'm putting together some Lego - I never was very good at this. Is it fair to say -
RANTALA: You need to practice.
QUEST: Well, thank you. Yes. Is it fair to say that this is not exactly an experiment, it's going to be a learning curve for both of you because of
the nature - the different nature - of the two companies - one physical, one digital?
RANTALA: Well first of all, you know, we've been in talks for a long, long time and I think the deciding (ph) point was that when the Lego executives
saw the really raw and unfinished version of our upcoming feature film, so they got so excited that we decided that now is the right time to go
onboard and start this partnership. So we've been preparing this for quite a long time. So I think that we will - in other words, we don't want to practice too much when we go
towards our fans. So I think that we are going to have something that really feels really
real and great and is a great experience from the very beginning. But of course it's a journey when these two companies we now start to partner. We
are looking forward to have a long-term partnership and I'm sure that the years will bring with them of course new experiences.
(END VIDEOCLIP)
QUEST: That's Lego and Angry Birds. One piece of news to bring you coming in while we've been on-air. S&P has downgraded Greece's credit rating
further into junk territory. It's now - it's only gone down by one notch from Triple C Plus, now it's at Triple C.
And the outlook is negative and if I just tell you the reason why they say, according to the S&P press release, "Greece's delaying its payment to the
IMF appears to demonstrate the Greek government is prioritizing pension and other domestic spendings over its debt obligations. We've lowered our
long-term sovereign credit to Triple C." Not a huge move - Triple C Plus to Triple C - but it is an indication that
Greece's actions in deciding to bundle payments as it did at the beginning of the month, has had a repercussion. In other words, now the ratings
agency put them on guard. Now other news, by all accounts Google Glass was an epic flop - not for
everyone. It turns out they have medical uses with Google Glass and there are applications that are helping sufferers of Parkinson's disease.
(BEGIN VIDEOCLIP)
UNIDENTIFIED FEMALE: Parkinson's is a movement disorder. I was diagnosed in 2003. With Parkinson's, all of your movements and in fact everything
about your body becomes constricted. For me, everything slows down. When I would be walking on the sidewalk, I would feel like I was walking through
mud or quicksand. They have developed an app for Google Glass and it consists of a little
screen and this plastic piece that you put on and they give you little visuals to follow.
I took it out for a walk and it's great for a walk because the person who was demonstrating the walk - she's walking and you walk along with her and
then she - then the screen disappears and the music just keeps looping when you're walking because walking to music is very helpful and it keeps you in
a certain gait and you don't slow down.
[16:55:01] UNIDENTIFIED MALE: Anthropedi (ph) offers free specialized dance classes for people with Parkinson's. All of the strategies that
dancers use to move and to control their movement and maintain balance and control their flexibility and use a wide range of imaginative tools to
initiate movement. All of those tools can be useful for people with Parkinson's.
As a teacher, it's impossible for me to be with each individual student once they leave the studio. Google Glass is in many ways the perfect
technology for translating the information that we try to get across in class into people's everyday lives.
UNIDENTIFIED FEMALE: The exercise is really imperative to combat almost any kind of ill health, but with Parkinson's it's particularly necessary
because of the tendency of the body to constrict - just sort of twist in on itself.
I think probably the visual keeps you honest in terms of the extent to which you put your all into an exercise. The dancers are so well trained
and they do it so beautifully you want to imitate them. And when you imitate them, you're doing the exercise better.
(END VIDEOCLIP)
QUEST: Magnificent. A "Profitable Moment" is after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." Today Sir Tim Clark brought the Gulf 3 fight right into the heart of American aviation. Speaking at the
Wings Club, he defended the way the Gulf 3 run their business. Now it's up to the U.S. government to decide whether they will ask for consultations.
This row between the American carriers and the Gulf is nasty, it's deep and it's going to take more than a few speeches to put it right.
And that is "Quest Means Business" for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, (RINGS BELL) I hope it's
profitable. Let's get together tomorrow.
END
