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Iran, World Powers Reach Nuclear Deal; Kerry Says Sanctions Brought Iran to the Table; Western Companies Poised to Swoop on Iran; Energy Companies Eyeing Iran; Greek PM "Takes Responsibility" for Debt Deal; Carnival to Cruise from US to Cuba; Dow Tops 18,000; Takeover Hoax Sends Twitter Shares Higher
Aired July 14, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:59:55] (NEW YORK STOCK EXCHANGE CLOSING BELL)
POPPY HARLOW, HOST: Wall Street rallies for the fourth straight session. It is Tuesday, the 14th of July.
Tonight, the centrifuge is shut and the economy open. Iran's nuclear deal offers a new economic future and a global future.
Tsipras in a hard sell. Greece's prime minister justifies his deal to his people.
And the sequel that has taken 55 years to publish. Harper Lee's new novel finally hitting the shelves.
I'm Poppy Harlow, and this is QUEST MEANS BUSINESS.
Good evening, everyone, welcome to QUEST MEANS BUSINESS. I'm Poppy Harlow. Tonight, a landmark deal that holds back Iran's nuclear program
and throws open the doors to its economy, the result of 20 months of arduous negotiations between Iran and six nations led by the United States.
The deal places limits on Iran's nuclear activities in exchange for sanctions relief. It's back-to-back press conference held by the United
States and the Iranian president addressing their nations and praising the agreement.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: A different path, one of tolerance and peaceful resolution of conflict leads to more integration
into the global economy, more engagement with the international community, and the ability of the Iranian people to prosper and thrive. This deal
offers an opportunity to move in a new direction. We should seize it.
HASSAN ROUHANI, PRESIDENT OF IRAN (through translator): Iran is not looking for weapons of mass destruction and never will be, and neither is
it after imposing pressure on the countries of the region and never will be. Countries of the region, the relations between us are gaining a new
start with more affinity, intimacy, and brotherhood, and we are looking to extend our relations with you.
(END VIDEO CLIP)
HARLOW: President Rouhani saying that all sanctions against Iran will now be lifted. In his words, that includes banking sanctions -- that's
very big, because you'll remember BNP Paribas paid $9 billion in a fine one year ago for violating US sanctions on Iran.
Also, it lifts trade sanctions, like on industries including insurance, transport, and refineries. And most controversially, arms
embargoes and missile-related sanctions lifted. The US Treasury Department warning that it can, quote, "snap back" any of those sanctions if Iran does
not stick to its commitments.
Hardliners here in the US, in Iran, and in Israel, were quick to criticize this deal. Israeli prime minister Benjamin Netanyahu calling it
a "historic mistake" for the world. Speaking to CNN's Christiane Amanpour, US secretary of state John Kerry said the critics didn't offer viable
alternatives. Listen.
(BEGIN VIDEOTAPE)
JOHN KERRY, US SECRETARY OF STATE: Sanctions brought them to the table to negotiate. They did the very thing everybody put the sanctions in
place to get them to do, which is negotiate. So, they negotiated.
Now, measure the agreement to see whether or not it achieves what we need to in terms of insight, restraint, accountability, and so forth.
That's what we should be doing.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: The EU chief, Frederica Mogherini, said this is not just a deal, it's a good deal.
What do you say to those who say, well, OK, it's restricted them for 10 years and 15 and 25, depending on various issues. What about after that?
Are you confident that they don't rush to start up again? Or is that for a future generation?
KERRY: Well, I cannot make any promise about the long-term future of anybody, including the United States' actions or choices for any future
president, obviously. But in life, you have to bet on -- and in diplomacy and in conflict, you have to set up a structure and try to live by it and
put it to the test.
We negotiated with the Soviet Union. We negotiated with red China. We negotiated for years with people we deemed to be the arch enemy. And
without any trust, we put restraints in our nuclear programs, or came to understandings.
Could you sit there and say you knew exactly what would happen 20 -- no, of course not. But you try to shape that behavior through the choices
you make and the things you put in place.
We know to a certainty what this will do. We also know -- we know, Christiane, that we have unprecedented access through this in terms of
verification. So, yes, they get to do more in the out years. That's their right, as they clean up -- supposedly -- and become an NPT good standing
country.
[16:04:55] Remember, during all of this time, Iran never pulled out of the non-proliferation treaty. They could have. They could have said to
hell with you, we'll do our own thing. They've lived by the NPT. They're living by it now. And they -- well, they say they're living by it now.
They haven't lived by it completely, which is why we put the sanctions on them.
So now, we're putting to test whether or not there's a change of heart or change of mind, a change of direction. And if there isn't, we have
every option available to us every day that we have right now.
(END VIDEOTAPE)
HARLOW: Also, major corporate opportunity here. Western companies have been virtually locked out of Iran for decades. They are now poised to
swoop in. You're looking at some of the biggest names in energy: Eni, Total, Shell, worked in Iran before the sanctions were put in place. They
say they want to get back in. Also looking at BP, Exxon Mobile, expressing interest.
And when you move along to transports, Boeing -- this is a big one. Boeing looking to rekindle its relationship with Iran just last year. When
you look at Iran, this is a country that needs 400 jets replaced. That could be worth $20 billion in sales.
On the ground, French automakers Renault and Peugeot looking to restart their sales in Iran. And then, when you look at consumer goods,
Western companies hoping to capitalize on the tremendous buying power of Iran's youth and its well-educated population.
From Apple to General Electric, these are companies that are reportedly looking for distribution partners within Iran now, now that
everything has changed. Let's talk about it with Gillian Tett, she's the US managing editor for the "Financial Times." She joins me now from
London. Thank you for being here.
What a day, what a historic day. I think there were so many question marks leading up to this, but you said this doesn't feel like an epochal
moment. There is a fair chance that history will have a kinder view on this than many do right now.
GILLIAN TETT, US MANAGING EDITOR, "FINANCIAL TIMES": Well, absolutely. We shouldn't lose sight of the fact there are still several
hurdles to be overcome. We just heard from John Kerry very clearly that they're going to treat Iran a bit like a naughty child. It only gets to
eat its dessert and get the goodies if it show's it's actually good for quite a long period of time.
But certainly, the Western corporate interests, particularly here in Europe, are very, very excited about this, at the chance of getting back
into Iran. To be honest, companies like Eni and Shell have already been into Iran in the last year or so to try and do some their ready deals and
things. But it's not just the energy sector, as you say.
HARLOW: Right.
TETT: It's a whole host of consumer goods companies and industrial companies, too.
HARLOW: Well, so, let's talk about -- we just spoke of a Boeing, or even more consumer-facing company, an Apple, or a GE. Talk to me about how
big the Iranian market is for them, how much this market can move the needle for them.
TETT: Well, we have to keep that in context, because Iran is a big country, but right now, it's a pretty poor country. And there is a great
thirst for Western goods, for American goods, but it's not a country which is swimming in wealth right now.
But certainly, when the oil money starts to flow, as the Iranian economy starts to be rebuilt, as, importantly, that $100 billion worth of
assets that are frozen overseas that essentially belong to Iran are unlocked if this deal goes through, then you will get some significant
purchasing power.
HARLOW: It's interesting. President Rouhani today using the words "new chapter" in talking about Iran's relationship with the United States,
with the West. What I find very interesting, Gillian, is that we have heard pretty much nothing from major corporations around the globe during
these negotiations or even after. Yet there is all of this opportunity that has been unlocked. Why do you think that is?
TETT: Oh, they're terrified that they're going to get hit by the type of sanctions that hit BNP Paribas, or that they will in some way be
targeted either by the Iranians or by America. There's a real fear and nervousness about dealing with Iran, quite understandably, because of
course, certainly the history of European countries dealing with Iran have been very mixed.
HARLOW: What do you expect to see from the Iranian consumer? Talk to us about -- because when you're in Tehran, for example, so many people say
it is not what you would expect it to be, right? And especially among the youth there, what can we expect from them?
TETT: Well, you have quite a varied market. I mean, I've been to Tehran myself, and you have sophisticated consumers who -- certainly lots
of women, beneath the Chador and things, are actually very interested in luxury goods, very interested in perfumes, very interested in clothes and
things like that.
You also have a real thirst for electronic gadgets. You do have a pretty sophisticated, literate consumer base there. But you also have a
whole range of very basic items that are needed for everyday life.
HARLOW: Gillian Tett with the "Financial Times," thank you very much, we appreciate it, live from London for us this evening, thank you.
Also, while American companies have been shut out of Iran for decades, many European businesses operated in Iran until just a few years ago.
Marcos Sefcovic is the vice president of the European Commission in charge of Energy Union. He joins me now from Brussels.
[16:09:55] When you think of one word that comes to mind here in this deal, other than "historic," I suppose it is oil, given the huge reserves,
sir, that Iran sits on. We have already seen Total, Energy -- Eni, rather -- Shell, looking very closely at Iran, even having some meetings within
Iran ahead of this. What do you think this means for cooperation on the oil front between the West and Iran?
MARCOS SEFCOVIC, VICE PRESIDENT, EUROPEAN COMMISSION ENERGY UNION: It's really the congratulations to all the negotiators, and I'm very proud
of our Frederica Mogherini, who did such a great job on delivering this deal.
And what it means, I mean, in the global terms, I think that a big global player in the energy field is coming back to the markets. And I
think that it would have a huge influence on oil and on creating, I will say, this new supply balance in this commodity.
And I think in the medium term, we will see that the same will happen with the gas, which I believe will also become a global commodity, which
would be then traded globally, and the prices will not be fixed anymore by long-term by contracts, but by really gas prices, by global pricing, which
would have tremendous influence on liquidity of the market in the European Union.
HARLOW: So, when you look at it, by some estimates, Iran sits on 158 billion barrels of oil reserves. One oil analyst coming out this week
saying Iran could add as much as 500,000 barrels of crude per day to worldwide markets by the end of this year. What does it do to energy
security in Europe, particularly given strained relations with Russia?
SEFCOVIC: I think that if I have to sum up, I would say that energy security for Europe in one word, that word would be "diversification." We
really would like to diversify as much as possible of energy supply for Europe, and we are doing everything possible to do that and to make sure
that when we get the energy supplies from different sources that we are able to transport it within Europe much better than before.
So also, our internal energy market is working better. We have much better liquidity of our market. And of course, the additional supply of
such an important energy player like Iran would make a great difference, and therefore I hope that we will be able to deliver more competitive
prices in Europe and a lower energy bill for our households and for our consumers in the European Union.
HARLOW: So, let's talk about those prices. Here in the United States, you're hearing across the board today, $2 gasoline per gallon, $2
gasoline per gallon. There's a lot of questions about what it does to shale oil production in this country, in the United States. But globally,
what do you think this does? How much downward pressure does this put on crude?
SEFCOVIC: Of course, it's very difficult to forecast what will be the concrete -- concrete drop in the prices. When I was looking through some
analysis from the global traders, so clearly, they've been talking about a quite significant percentage points.
Because one thing is a real supply, another thing is, I would say, such a psychological element that a big player is coming back into the game
and will have enormous possibility to influence the global markets.
So, I think that we will see much fierce competition on the oil, and in the medium term, also gas markets. And I think that it should have a
positive downward influence on the energy prices, definitely in the European Union.
HARLOW: Yes, we'll see how low it will go. Marcos Sefcovic, thank you, sir, for being with us this evening from Brussels. We appreciate it
very much.
Coming up next after the break, Alexis Tsipras explains why he signed Greece's harsh bailout deal a day before it goes to a critical vote in the
Greek parliament. We'll be live in Athens next.
(COMMERCIAL BREAK)
[16:15:34] HARLOW: Alexis Tsipras says he takes full responsibility for Greece's harsh bailout deal. The prime minister is back in Athens
tonight hoping to drum up support before a crucial parliamentary vote on Wednesday.
The harsh terms that Tsipras agreed to have stirred up dissent even within his own party. Some are even speculating he could be forced to
resign. But speaking earlier on Greek television, Tsipras said that the deal was the best that Greece could get.
(BEGIN VIDEO CLIP)
ALEXIS TSIPRAS, PRIME MINISTER OF GREECE (through translator): I'm not going to tell the Greek people that this was a success story. This is
the difference with the past governments, they were telling us that the bailouts were a blessing. I'm saying that this is a policy that doesn't
help us.
And in this framework, this harsh framework, we did whatever we could. We arrived to a point where we couldn't go any further.
(END VIDEO CLIP)
HARLOW: CNN's Isa Soares has been keeping an eye on the events in Athens for weeks, now. She joins me, live, back in Athens after all the
focus was on Brussels. This evening, can Prime Minister Tsipras sell this to parliament?
ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Well, he tried, definitely, to sell it to the people, that's for sure, Poppy. He spoke for
just over an hour. He was very calm, he was very confident, but clearly looking very tired.
And you heard a little snippet there of what he said, and he was trying to be as honest as he possibly could to the Greek people, saying we
tried our best, we tried the best we could in Brussels. Unfortunately, this was the deal that was on offer to us. There was no other option.
He went on to say -- I've got some lists where I wrote down what he said. He said there was -- pressure was put on his country and on his
people. It was a bad night, he said, for Europe. He said the traditions of Europe were not respected, clearly point fingers, there, at some members
of the eurogroup. And he talked about blackmail and asphyxiation.
But if he was trying to convince his people, the people of Greece, here, Poppy, I was somewhat confounded, because he said, "I take full
responsibility for my mistakes and for putting my signature on a document we don't believe in."
HARLOW: Right.
SOARES: So, I think people tomorrow will be wondering, so what exactly do you stand for? And I think that will be very confusing for the
Greek people.
HARLOW: And this comes from a man who, within the past few weeks, so encouraged people to vote "no" in this referendum, saying if you vote "no,"
I will get us a better deal.
SOARES: And he truly believed that. From what he was saying, he truly believed that he could. He believed that Europe would understand
what that referendum was about and Europe would see that they were really tired of austerity.
He said, basically, he went to -- also to Russia, China, and US for options, but there were no other options, Poppy. So, he's trying to be as
-- really, as honest as he can with the Greek people, and he said he will put these measures through and he will implement them. "I take full
responsibility for my actions, and I shall stick to what I've promised."
But he says it's harsh measures, much harder than we could have got, but his was exactly what's on the table. He added, also, interestingly,
that he had a lot of support from France and Italy and Cyprus, but he said there were some members within the eurogroup that clearly wanted to see a
Grexit. He didn't mention the country, but we know that Germany has --
HARLOW: Yes.
SOARES: -- put huge amounts of pressure on Greece to really budge. So, it'll be interesting to see, Poppy, tomorrow whether he has the full
support. From those I've been speaking to, they say the measures will pass.
HARLOW: And whether or not ultimately he stays in power there. Isa Soares, live in Athens this evening, thank you very much for the reporting.
Coming up next, Carnival Cruise is setting sail for Cuba. I will speak with the chief executive about the company's plan for this new
destination.
[16:19:39] (COMMERCIAL BREAK)
HARLOW: It is not just Iran. The United States gradually reestablishing diplomatic and business relations with Cuba. One firm
already making commitments to Cuba is Carnival, which rang the closing bell on Wall Street just a few moments ago.
(BEGIN VIDEO CLIP)
(NEW YORK STOCK EXCHANGE CLOSING BELL)
(END VIDEO CLIP)
HARLOW: Carnival has US approval to operate cruises to Cuba. It's now seeking permission from Havana to land at Cuban ports. CEO of
Carnival, Arnold Doland -- Donald, rather -- joins me now from the floor of the New York Stock Exchange. First of all, congratulations on ringing the
bell.
ARNOLD DONALD, CEO, CARNIVAL CORPORATION: Thank you.
HARLOW: Congratulations on the 175th anniversary of Cunard, which you're also celebrating with the gentlemen behind you. I am fascinated by
this Cuba push. Where did it come from?
DONALD: Thank you, Poppy, good afternoon to you. It's an exciting day for us with the 175th anniversary of Cunard. The Cuba push came from -
- we started a brand, we announce that a few weeks ago, the Fathom brand.
HARLOW: Right.
DONALD: It's the purpose-driven cruise brand. And when we looked at the purpose of Fathom, the 12 approved ways to travel to Cuba from the US
fit very well with the brand. And so, we applied for the licenses, and we received them from the Treasury Department and from the Commerce
Department.
It's very historic to be the first cruise company in the United States in over 50 years to be approved by the US to sail to Cuba and back.
HARLOW: It's interesting, because it's a very fascinating way to sort of -- bring people to Cuba, but you can't bring tourists yet. You have to
bring them for sort of academic reasons, historical reasons, for these different approved reasons. So, it's purpose-oriented social impact
travel. How do you market this differently? And how big is the opportunity there if the average Joe can't go?
DONALD: Well, as you know, there's hundreds of thousands of US citizens today that go under those 12 authorized forms of travel to Cuba.
So, there's a big pent-up demand.
And the reality is, the cultural exchange and the culture immersion opportunities that this type of travel presents really resonates with a
number of Americans and others. We'll be able to take others. They have to follow the US guidelines --
HARLOW: Right.
DONALD: But we'll be able to take Canadians and Brits and Australians as well.
HARLOW: So, I'm interested in, are you as a company responsible for what the travelers do once they hit the mainland? Once they hit Cuba, are
they required to carry out certain tasks, participate in certain things, or could they just sort of get there under that guise and then act like
tourists and go to the beach?
DONALD: Well, look, our responsibility is to document and to report and to make certain that the things we provide fit well within those
criteria. That's exactly what we're going to do. And we expect that those that choose to take this particular experience will honor it and respect
it. And at the same time, we will be documenting, we will report.
HARLOW: Tell me about the outlook for the overall cruise industry right now. Because when you came in, when you took over as CEO two years
ago, Carnival, the industry was in a pretty tough place. And we've seen sort of a remarkable turnaround for you guys. What's the outlook now?
DONALD: Well, the outlook is very positive. We've had a wonderful business, and 120,000 dedicated employees who are passionate, a long
history of exceeding guests' expectations. So, that was a great foundation to build on.
And we built on that and continue to do so, so our -- all of our employees are focused on one thing, and that's exceeding the guests'
expectations. And as we do that, and as others in the industry seek to do the same, we continue to build the cruise industry worldwide.
[16:25:02] So, we grew earnings 25 percent 14 over 13, forecast is to do that again this year, that's the guidance for the year, to do that or
better. And we certainly look forward to a bright future.
HARLOW: Arnold Donald, thank you very much, sir. Good to be with you. Going to be fascinating to watch --
DONALD: Thank you, Poppy.
HARLOW: -- what happens with this push into Cuba. Appreciate you coming on the program tonight.
On Wall Street, the Dow hit the 18,000 mark for the first time since mid-June. It ended the day up 75 points, boosted in part by a major global
bank, JPMorgan, reporting higher than expected profit for the second quarter. CNN Money's digital correspondent Paul La Monica here to talk
about it.
So, interesting, Jamie Dimon, CEO of JPMorgan, on the call this morning talking about their numbers, also saying not worried about Greece
and I'm not worried about China and growth issues.
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yes, he was not really concerned at all about either of these two stories that have been
just dominating the financial headlines. With regards to Greece, Dimon said that he thinks that there does need to be a reasonable deal in place
to put Greece back on track to grow in a healthy way. But even if Greece did have to leave the eurozone, he didn't think it would do that much
damage to the European economy.
And then with China, he really strongly suggested that what's going on there, it's a market turmoil, but don't confuse that with the economy
slowing down --
HARLOW: Right.
LA MONICA: -- dramatically.
HARLOW: Yes, he's saying you can't expect any economy to have perpetual growth at 10 percent. We're looking at an outlook when we get
those China GDP numbers tomorrow of maybe slipping just below 7 percent.
LA MONICA: Exactly.
HARLOW: I was joking with our team, what the US would give for those numbers, right?
LA MONICA: It would make the 2016 election a lot more interesting.
(LAUGHTER)
HARLOW: It would, it certainly would. I want to talk about Twitter. Interesting move in Twitter today, shares popping 8 percent, but not for
the reason --
LA MONICA: No, not --
HARLOW: -- investors want.
LA MONICA: -- not good reasons. Full confession: what happened with Twitter was that there were reports that Bloomberg was suggesting the
company was close to a sale, that maybe there was someone who was going to buy them for more than $30 billion.
The website that people were sending the URL for, it looked like the legitimate Bloomberg site, until you went a little bit more closely,
realized that it was for something called Bloomberg.market, which is not associated with Bloomberg. It was fake. Bloomberg quickly came out and
said this is not true, we're not reporting this.
Twitter stocks still finished higher, and I think that probably just suggests that because of all the turmoil there, people expected unless they
hire a new CEO permanently soon --
HARLOW: Then they will be sold.
LA MONICA: -- they could be for sale. So, it could be a case of where there's smoke, there's fire. But this story today, complete fake.
HARLOW: And you've got to wonder who pulled that off. We still don't know.
LA MONICA: I don't know. We've had this, unfortunately, happen. With Avon, a fake --
HARLOW: Yes.
LA MONICA: -- SEC filing, people believed it for a while.
HARLOW: Wow.
LA MONICA: So, hackers getting more sophisticated.
HARLOW: Absolutely, by the day. Paul La Monica, thank you very much.
LA MONICA: Thank you.
HARLOW: Well, a deal to close down the Iranian nuclear threat and open the taps for its oil industry. We will show you the huge potential,
next.
[16:28:00] (COMMERCIAL BREAK)
HARLOW: Welcome back, I'm Poppy Harlow. Coming up on the next half hour of "Quest Means Business," there is a multi-million dollar bounty but still
no sign of Mexico's fugitive drug kingpin.
And few have released books this big or this controversial. We will give you the story behind Harper Lee's new novel. Before that, though,
these are the top news headlines we're following for you this hour.
Iran has reached an agreement with six world powers over the future of its nuclear program. The number of Iranian centrifuges will be cut by
2/3rds and other restrictions will be put in place in exchange for sanctions being lifted.
U.S. President Barack Obama says the deal will prevent Iran from getting a nuclear weapon. Iran's foreign minister says the agreement works
for all sides.
(BEGIN VIDEOCLIP)
MOHAMMAD ZARIF, IRANIAN FOREIGN MINISTER: I think we adopted a good decision, I think it's good for all. It's now time to implement it. But
more importantly than that, if you want to make history today, this has to be the foundation of the scenic (ph) for building on something that can
impact rake (ph) a several-year-old misperception, unnecessary crisis so that we can deal with the real crises that are affecting all of us.
HARLOW: Israeli Prime Minister Benjamin Netanyahu has spoken to U.S. President Barack Obama expressing his concern about the deal. Israel's
security cabinet today unanimously rejecting the agreement. Mr. Netanyahu has said a deal was dangerous and a dangerous gamble that played straight
into Iran's hands.
(BEGIN VIDEOCLIP)
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: The world is a much more dangerous place today than it was yesterday. The leading international
powers have bet our collective future on a deal with a foremost/formal sponsor of international terrorism.
They've gambled that in ten years' time, Iran's terrorist regime will change while removing any incentive to do so. In fact, the deal gives Iran
every incentive not to change.
(END VIDEOCLIP)
HARLOW: The Greek Prime Minister Alexis Tsipras says he takes full responsibility for signing a harsh bailout deal with creditors.
But speaking today on Greek television, Tsipras insisted the agreement was the best that his country could get. He also admitted that Greece's
banks could stay shut for another month.
And NASA's New Horizon spacecraft has performed a flyby of Pluto. It's the closest anyone or anything has ever gotten to the dwarf planet.
The mission was nine years in the making and will collect data on Pluto.
New photos already show Pluto is bigger than originally thought. Scientists hope the mission will reveal much more about the uncharted areas
of our solar system.
We return to our top story this evening -- the historic agreement between Iran and six other nations. As the deal neared completion, oil
prices fell to their lowest point in almost three months. Just as the deal was signed, crude prices were down more than 2 percent. A few hours later
though, they did bounce back there - up about 1 percent now for the day.
The sanctions against Iran have put a major dent in that country's oil production and certainly its exports. The restrictions will not be lifted
immediately but when they are, you can bet that Iran will be ready.
Take a look at these numbers. Iran has 30 million barrels of oil ready for sale, that is according to the Fact (ph) Energy Consulting Firm.
And there is a lot more in the ground. Iran has 158 billion barrels' worth of proven oil reserves that it sits atop. That is 9 percent of the global
total - more than Iraq, Kuwait or the UAE.
Let's talk about it with Juan Zarate, the former U.S. deputy national security advisor. He's now a senior advisor at the Center for Strategic
and International Studies.
Thank you for being here. Sir, Rouhani - President Rouhani - today calling this a new chapter coming to this agreement when you look at
relations with the outside world.
When it comes to the sanctions being lifted for Iran, take us into that country and how significant it is for the people.
JUAN ZARATE, FORMER DEPUTY NATIONAL SECURITY ADVISOR: Well I think the sanctions have really bitten into the Iranian economy.
You've seen this in the context of not just the oil trade and the restrictions in that sector but also in the context of infrastructure
development, capital availability, the banking sector's ability to do business internationally, and that's affected the bottom line of Iranian
economy.
[16:35:01] And In fact, that's much of the motivation I think for why Iranians have wanted to have these discussions and to forge a deal.
I think what you will see at play is really a desire on the part of the Iranians to accelerate as much as possible the lifting of the formal
sanctions -
HARLOW: Right.
ZARATE: -- at the U.N., within the E.U., within the U.S. And the question will be how quickly will the markets adapt? And the reality I
think is that there are plenty of market players champing at the bit to try to get back into the market, and so the Iranians are going to think I think
full advantage of that.
HARLOW: Who will push the most? I mean, we've already seen some of these major oil players - Shell, BP, (ph) Total having conversations in
Iran even ahead of this, right? Who's going to push the most to get those sanctions fully lifted and for business to become as normal, if you will,
as it can between Iran and the West?
ZARATE: Well I think you're going to have particular sectors that are going to be interested, and of course the oil sector and all of the
infrastructure that's attendant to that sector will be a part of it. You're going to have countries as well very interested in reengaging - I
think from China, from Russia.
Certainly during the negotiations, the Russians were advocates of lifting the sanctions more quickly and more broadly than the other players
at the table. And so you're going to have a number of players, and I think you're going to see much of that from the industry then lead the banks and
the financial sector -
HARLOW: Right.
ZARATE: -- to try to service some of that. And so I think you're going to see waves of attempts to get back into Iran, to the extent that
the market sees signals that the sanctions are really going to be lifted -
HARLOW: Right.
ZARATE: -- and I think that's a major question still at play.
HARLOW: Because Iran is still listed technically as a - as a, you know - a state sponsor of terrorism to the United States. Treasury still
has some of these sanctions against Iran. So I wonder if you think that that is going to make some of these major corporations still more fearful -
more fearful to fully get in.
ZARATE: I think so. I think the market is still uncertain and I think you have three variables. One is what will Congress do? Congress
has played a role in implementing sanctions - imposing them - and so what will Congress do and what's the interplay in Washington? What will the
supreme leaders say in Tehran?
We've often heard different views of what Iran is going to subscribe to and honor in terms of the deals. And so I think market players will
watch what comes out of Tehran. And then finally your point which is a very important technical point which is the sanctions regime, especially
from the U.S., has come with multiple layers.
HARLOW: Right.
ZARATE: And so it just hasn't been about the nuclear file or issues, but it's been about terrorist support, it's been about human rights abuses,
it's been about support to the Assad regime in Syria, and you have new sanctions regimes related to corruption and even cyber infiltration that
could apply to Iran.
HARLOW: Right.
ZARATE: And so I think cautious market players are going see that and they're going to wait to see how this is all unwound.
HARLOW: (AUDIO GAP) I think remember you still have four Americans still being held in Iran, including a high-profile case that the
"Washington Post" reporter Jason Rezaian. I mean, companies have to consider that as well if they want to be in business in that country from a
public relations standpoint.
ZARATE: I think that's absolutely right. You have the human rights issues, the Syria taint potentially -
HARLOW: Right.
ZARATE: -- you have the concerns that Iran is supporting various proxies in different fights in Lebanon, Syria, Yemen, perhaps the Gulf,
Iraq. And so, you know, in some ways there is a market reality here that if you're going to do business in Iran, the risk actually may go up.
HARLOW: Yes.
ZARATE: The government still controls the economy and the revolutionary guard which runs much of the economy is still doing a lot of
the things that we're talking about here.
HARLOW: All right, thank you so much. Good to have you on. Juan Zarate -
ZARATE: Thank you.
HARLOW: -- joining us this evening. After the break, 55 years after the famous novel "To Kill a Mockingbird" is released, author Harper Lee
redefines beloved characters in her new book. We will be live in the author's hometown to find out how the novel is stacking up against its
iconic predecessor.
(COMMERCIAL BREAK)
[16:41:07] HARLOW: Well the release of this book is being billed as the literary event of the decade. Harper Lee's long-awaited follow-up to
"To Kill a Mockingbird" was officially launched in more than 70 countries on Tuesday. The title, "Go Set a Watchman" already looked set to rival the
success of its predecessor.
The book received a midnight release - the kind usually reserved for blockbuster titles like "Harry Potter." Publisher HarperCollins said it
was the most pre-ordered book in its history.
Even before it hit bookshelves, Harper Lee's new novel was attracting hype and a lot of controversy in equal measure. CNN's Claire Sebastian has
more.
(BEGIN VIDEOCLIP)
CLAIRE SEBASTIAN, CNN PRODUCER: It's the moment fans of Harper Lee have waited 55 years to experience. This Barnes & Noble Bookstore in New
York opened at 7 a.m., two hours earlier than usual.
LESLIE SIMMONS (ph), TEACHER: This is exciting.
SEBASTIAN: Leslie Simmons, a public school teacher, traveled from Staten Island. She bought seven copies for her eighth grade book club.
SIMMONS (ph): Just such rich themes in there. You know, such stories, such lessons, you know. And plus any reason to get kids to read
(LAUGHTER).
SEBASTIAN: "Go Set a Watchman" has become a global phenomenon. It's the most pre-ordered book on Amazon since the first "Harry Potter" novel in
2007. Lines formed at this London bookstore at midnight, some simply unable to wait.
Barnes & Noble says it's a truly unique opportunity.
Female: We never thought it in our lifetime we'd have another book from Harper Lee. We expect "Go Set a Watchman" to be our number one
selling book of the year.
SEBASTIAN: Harper Lee actually wrote while living right here on this very stretch of road on New York's Upper East Side in the 1950s. For
almost six decades, "Go Set a Watchman" was abandoned. Its release may redefine her legacy.
Marja Mills is the author of "The Mockingbird Next Door," the story of 18 months spent living at close quarters with Harper Lee who had by then
moved back to Alabama with her sister Alice. She says she never expected Lee to publish again.
MARJA MILLS, AUTHOR, "THE MOCKINGBIRD NEXT DOOR": No Harper Lee herself, no Harper as she's known in her hometown had said to a friend for
example that there were two reasons.
One was she wouldn't want to go through all that publicity again for all the money in the world, and two, that she had said what she had to say
in "To Kill A Mockingbird" and wouldn't say it again.
SEBASTIAN: She didn't need to say it again. "To Kill a Mockingbird" has sold more than 40 million copies to date, becoming a 1962 Hollywood
hit.
(BEGIN VIDEOCLIP)
GREGORY PECK, ACTOR, AS ATTICUS FINCH IN "TO KILL A MOCKINGBIRD": You never really understand a person until you consider things from his
point of view.
(END VIDEOCLIP)
SEBASTIAN: Now, generations of readers are faced with a new side to their favorite characters. Atticus Finch, the lawyer who heroically
defended a black man, is revealed as a racist, at one point telling his daughter, "Our Negro population is backwards." One reviewer calls it "the
toppling of idols."
SIMMONS: People who try to tell me, 'Oh, yes, everything has changed, the characters' - whatever, OK fine. But still we're going to read it.
SEBASTIAN: For the fans and the now 89-year-old author, this is a whole new chapter. Claire Sebastian, CNN, New York.
(END VIDEOCLIP)
HARLOW: Early reviews indicate that critics are just as divided as fans when it comes to Harper Lee's new offering. But in her birthplace of
Monroeville, Alabama, residents are celebrating the return of a hometown hero. That is where we find our Ed Lavandera.
Ed, what are people there saying tonight?
ED LAVENDERA, CNN CORRESPONDENT: Well you know, that many people here are reluctant to talk about the controversy surrounding the books. To the
people here in Monroeville, this is their beloved Nelle, their small, hometown treasure who has come here. She lives here in a assisted-living
facility.
In the words of one friend that we spoke with today, she lives a very quiet life. She has a hard time hearing and seeing at this point. In
fact, described one of her friends that life for her is basically rather boring. But as her friend says, that's just the way she likes it.
[16:45:06] But many people kind of torn and really intrigued by the mystery that is shrouding this novel.
HARLOW: I can't wait to read it. Ed Lavandera live for us there in Monroeville, Alabama. Thank you, Ed. Coming up next, the Mexican drug lord
Joaquin "El Chapo" Guzman still on the loose tonight. Nearly $4 million is yours if you can turn him in.
(COMMERCIAL BREAK)
HARLOW: Mexican authorities have placed a $3.8 million price on the head of fugitive drug lord "El Chapo" Guzman. Officials released an
updated photo of him - there it is - with the reward announcement.
The head of the prison Guzman escaped from has been fired and 34 prison workers are being questioned by authorities.
Mexico's interior minister says prison staff likely helped Guzman escape. Nick Valencia live for us in Juarez, Mexico with the latest. It
is incredible because a $4 million bounty still has a lot of people saying why would anyone risk so much to turn this guy in when he has been known to
go after families and friends in such a vicious way?
NICK VALENCIA, CNN CORRESPONDENT: We can't forget, Poppy, that this man was at one time on "Forbes" richest men in the world, a self-made
billionaire, they called him. So when you put out that $3.8 million figure, it seems as though it might just be pocket change for a guy like
that to keep his influence and it may not be enough to tip the scales in the authorities' favor.
As you mentioned, more than 30 prison guards have been brought in for questioning and the head of the Altiplano Prison, which is right behind me
has been sacked as a result of "El Chapo's" escape.
It seems as though that this escape was planned in plain view of not just the prison guards, but also the federal police officers and the
military which has - which had - the headquarters here nearby.
Some state police though, they tell me a different story. The narrative they believe is that El Chapo may have escaped - well he may have
just walked out the front door they say and that tunnel was a diversion.
That tunnel, just a magnificent feat of engineering filled with lighting, ventilation system as well as a modified motorcycle that was
presumably used to start that tunnel - to dig that tunnel I should say.
On the construction of that tunnel, what we've been told by the campesino, the farmers in this area, is that it began about eight months
ago in that rural home that he has said to have emerged. In about February or March is when they say it was complete.
And they said they grew suspicious because there were some individuals that stuck around. There were some heavy machinery being used in that area
to turn over dirt. And people were working on Sunday which is typically not a day that people that work around here.
Others, they just believe that he's not in this area no longer and that he's long gone. Authorities are going to have a tough time catching
up with them, Poppy.
HARLOW: Let's talk big, big picture - what this means for Mexican President Enrique Pena Nieto. I mean, this is a huge international
embarrassment, it has U.S. authorities obviously very upset because they wanted El Chapo extradited to the United States. He loses credibility
domestically. What does this mean for him?
VALENCIA: Why certainly. I've been speaking to both current and past Mexican officials - high-level Mexican officials - and one theory is that
this may play in the U.S.'s favor for extradition. There may be a quicker extradition because, if you remember, it was a very contentious issue when
El Chapo was first caught back in February of 2014.
[16:50:03] U.S. officials wanted him to be extradited -- he was facing numerous counts in the United States. Among the list, he was also not just
most wanted here in Mexico, but also in the United States. Chicago named him public enemy number one.
As far as the criticism towards the President Enrique Pena Nieto has been criticized for not coming back to Mexico during this time. He found
out about the news while he was in France and he continues to be outside of the country. So there are those that are very critical, at least the
public perception, of how he's handled this all. It doesn't look very good for the president.
Whether this will affect, you know, him going forward, you know, that's anyone's guess, Poppy.
HARLOW: All right, Nick Valencia live for us there in Juarez, Mexico. Thank you very much, Nick. Let's talk more about it because Guzman's
leadership turned the Sinaloa cartel into a powerfully, hugely powerful and deadly drug trafficking operation - moving marijuana, cocaine and heroin
right across the border into the United States.
Guzman appeared on - as Nick said - "Forbes" list of self-made billionaires, alongside people like Bill Gates and Warren Buffett.
In 2009 his net worth estimated at a billion dollars. Officials say he used his financial power to blackmail, to bribe, to extort even his own
prison guards. Remember this is someone who escaped from prison before - in 2001 - reportedly getting out of that prison in a laundry cart.
It's thought that it cost him $2.5 million to bribe people to help him escape that time. Let's talk about it with someone who has been tracking
his career if you can call it that for 15 years - Don Winslow, the best- selling author and who writes a lot about drug trafficking. His novel, "The Power of the Dog" includes a fictionalized version about Chapo's 201
escape. He joins us from Boston.
Thank you for being here, sir, I appreciate it.
DON WINSLOW, AUTHOR, "The CARTEL": Thank you for having me, Poppy.
HARLOW: You know, it's interesting because you've said that there's reason to believe that we're not hearing the full story here. What do you
mean?
WINSLOW: Well, let's back it up a little bit. You were talking about extradition a moment ago. The moment that Mexico refused to extradite
Chapo Guzman, this escape was foretold. It was going to happen.
Now let's look at the other end. Today the United States government offered its full resources to help to try to find Guzman, and the Mexican
government refused. That frames this so-called escape in a very troubling way.
HARLOW: Well, you know, there was this contentious fight between the United States and Mexico to - even though it was a joint effort that
eventually led to his capture in 2014, but ultimately the U.S. didn't get extradition. I'm wondering - even with him in jail, can you speak to how
much he still operated the Sinaloa cartel and what it meant for how many drugs crossed the border into the United States?
WINSLOW: Sure. Let's look at the year or so that he was in jail. What happened in the United States? An upsurge in heroin imports and a
heroin epidemic. Heroin is the major drug peddled by the Sinaloa cartel - Guzman's outfit. I don't think Chapo being in prison made any difference
at all.
HARLOW: Because he's able to operate ostensibly even when he's in isolation.
WINSLOW: Well exactly. And, by the way, I mean, that's why these cartel leaders fear extradition more than anything else. They can still
run their operations from a Mexican prison, not as well, not as conveniently, but still do it.
They can't do that from a U.S. super max prison and that's why they resist and fight to the death in fact extradition, and really that's the
major reason that Chapo wasn't extradited.
HARLOW: So if the Mexican government knows that, why such opposition to extradition? Is it about showing its people - which is understandable -
you know, we can manage our own affairs, thank you very much. Or what is it?
WINSLOW: Sure, the positive interpretation would be that, it would be national pride and we can handle our own business. However, again, looking
at these two factors - the fact that they refused to extradite, the fact that they refuse help now, you have to look at systemic corruption.
And, again, as you mentioned, this is not Chapo's first escape. This is his second escape. The same thing happened back in 2001, and the story
was put around - we were expected to believe - that he exited in a laundry cart.
I don't believe that story any more than I believe the tunnel story. He didn't leave in a laundry cart, he left either by car or by helicopter.
I have severe doubts that he went out this tunnel.
HARLOW: Do you believe that he will be captured again? Because last time it took 13 years.
WINSLOW: Well it took 13 years but it's kind of silly really to say that we were looking for him for 13 years. People knew where Chapo Guzman
was. Chapo Guzman went to New Year's parties, he went to dinners. A lot of people knew where Chapo was, including some very high-ranking police
officers who captured him once and released him.
[16:55:02] So I rather doubt - I'd be surprised if Chapo is captured again. You never know, but I'm betting against it.
HARLOW: All right, thank you very much. Don Winslow. Appreciate it.
WINSLOW: Thank you.
HARLOW: New in to CNN this hour, U.S. Treasury Secretary Jack Lew is due to travel to Frankfurt on Wednesday. He will meet with the ECB
President Mario Draghi before traveling to meet his counterparts in Berlin and Paris.
The Treasury Department says the tour is designed to continue U.S. engagement on the Greek crisis. All right, we'll be back with more "Quest
Means Business" in just a moment.
(COMMERCIAL BREAK)
HARLOW: U.K. Prime Minister David Cameron is proposing that British businesses reveal the pay gap between their male and female employees. The
proposal would require companies with more than 250 employees to publish the average salary differences between men and women.
U.K.'s Institute of Directors and Organization of Business Leaders says the rule could produce misleading information. The Institute's
director of policy said, quote, "Measuring pay gaps is very complex and averages do not show whether companies are paying people different amounts
for the same work. The long-term solution is to get more women into senior executive positions." We'll be tracking that one.
European markets gaining in Tuesday's trading. Major indexes up less than 1 percent. Oil and energy stocks gaining in spite of the news from
Iran which will likely put downward pressure on crude.
There is calm as investors wait for the next step in Greece's debt settlement. As for the Dow here in the United States, it finished above
18,000. The big talking point of the day though today was Twitter. Shares of Twitter spiking 8 percent briefly after a takeover bid which later
turned out to be a big hoax.
That'll do it for "Quest Means Business." I'm Poppy Harlow. Thanks so much for being with us this evening. Stay with CNN for the latest
developments on the historic deal with Iran.
END