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Quest Means Business
Four Dead in Military Center Shootings; ECB Throws Greek Banks Lifeline; Debt Relief for Greece; Importance of Greek Tourism; President Obama Calls for Prison Reform; US Prison Population Continues to Grow; Trump's Changing Wealth, Politics
Aired July 16, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:59:57] (NEW YORK STOCK EXCHANGE CLOSING BELL)
POPPY HARLOW, HOST: Solid gains for the Dow on Wall Street. It is Thursday, the 16th of July.
Tonight, a friendly face in Frankfurt. Mario Draghi throws a lifeline to Greek banks.
And here in the United States, President Obama makes an historic visit to a prison, a first for a sitting president, sending a clear message about
criminal justice reform in this country.
And hacking your way around the world. United Airlines gives a very special and a very big thank you to a couple of hackers.
I'm Poppy Harlow and this is QUEST MEANS BUSINESS.
Good evening, welcome to the program. We will get to the day's business news in just a moment, but first very tragic news to tell you
about here in the United States. Four US marines are now dead in two separate shootings today at two US military centers in Tennessee. The
alleged gunman also killed today.
A single gunman firing dozens of shots at this recruiting center in a strip mall in Chattanooga, Tennessee, then driving seven miles to a Navy
Reserve center and also opening fire there. Again, the four victims, US marines. Three people also injured in the shootings. They're being
treated at area hospitals. The city's mayor expressing his shock.
(BEGIN VIDEO CLIP)
ANDY BERKE, MAYOR OF CHATTANOOGA, TENNESSEE: It is incomprehensible to see what happened and the way that individuals who proudly serve our
country were treated. Two different locations this individual went to. And as a city, we will respond to this with every available resource that
we have.
(END VIDEO CLIP)
HARLOW: CNN's Alexandra Field joining us now, tracking this story. I was on the air when the news broke, and it was hours before we knew there
were casualties and that they were four marines. Do we know if they were targeted because they were members of the military?
ALEXANDRA FIELD, CNN CORRESPONDENT: There were only two buildings that were targeted, here, both military buildings. The four people killed,
marines. What motivated this attack, what motivated this gunman, unclear, the subject, of course, of this investigation right now.
We do know that the four marines were killed at the second shooting location, a military reserve center. And that is also where the gunman was
killed. It is the same spot where a Chattanooga police officer who was responding was shot in the ankle.
There is another person who's in critical condition, another person who is hospitalized, treated and now released.
What we know is that the gunman first went to a recruiting center, where he opened fire. We've seen dozens of bullet holes in the glass
windows and doors at that facility. He then drove several miles. Police pursued him to the second location, where the attack turned deadly.
Investigators at this point say they haven't been able to draw any connection between the shooter and the four marines who were killed.
They're also saying that they had no prior intelligence of an attack that was planned to target either of these facilities, Poppy.
HARLOW: We've just seen far too many mass shootings in this country. One is too many. And also, we've seen military installations the target
time and time again. The US attorney for the eastern district of Tennessee just holding that press conference comes out and says, this is domestic
terrorism. Then walks that statement back. Where does that stand?
FIELD: Right. You heard the FBI then chime in in that press conference saying that a lot more investigation needed to be done, that a
lot of questions needed to be answered.
But there is a question when we see these kinds of attacks of what does this mean? Is this domestic terrorism? Do you classify mass
shootings and mass casualty situations as instances of domestic terrorism or not? So, these are very early questions that probably cannot yet be
defined.
We do know, as you point out, that military installations have been on higher alert over the past few months --
HARLOW: Right.
FIELD: -- because of threats from ISIS. You look at places like these, though, and these are not really military installations. These are
not places where you've got security. These are not on a base or a post. These are recruitment centers, reserve centers --
(CROSSTALK)
HARLOW: But it makes them a softer target, right?
FIELD: -- in a strip mall. Absolutely.
HARLOW: It makes them an -- arguably an easier target.
FIELD: Anyone can approach them. If you look at these locations, it's literally a strip mall. You can drive up to it. This is a
recruitment center. You're encouraging people --
HARLOW: Right.
FIELD: -- literally to walk in.
HARLOW: What about the gunman? It's a lone gunman, right? One person. We know it was a male, I believe. What else do we know?
FIELD: A male lone gunman who is believed to be either from the area or at least living in the area at the time. What would compel this person
to target these two military buildings, these four marines, unclear at this point. His name has not been made public.
We do know that it was a male shooter. There were reports this morning from witnesses that they had seen a man leaning out of a car,
getting out of a car, using a high-powered rifle. Police have not yet said how he was armed or how many firearms he may have had with him.
So, no more details at this point about who the shooter was or what motivated him. But Poppy, this whole thing took about three hours before
police were able to say that the active shooter --
[16:05:01] HARLOW: Right.
FIELD: -- situation was over. But they say the attacks themselves really just span 30 minutes from the first location to the time that the
shooter was killed. However, we know that when things like this happen, there's a lot of chaos, there are a lot of reports from witnesses, and it
wasn't yet clear to police for about a three-hour period that they had the sole, single gunman in this case.
HARLOW: And it appears that this gunman targeted the best of us, the people that give everything to protect us in this country. Alexandra,
thank you. We appreciate it.
Turning to Greece, now -- and also we'll bring you updates, of course, on this story as we get more developments here in the United States, but I
do want to turn to other news tonight: Greece. Greece getting an ally that it so desperately needs. The president of the European Central Bank,
Mario Draghi, saying that Greece belongs in the eurozone and that he will help it stay there.
This was a major promise that came with a significant cash commitment. The ECB raising its cap on emergency lending to Greek banks, also hinting
that more help could follow.
Mario Draghi also throwing down the gauntlet at Germany and other hardline creditors, calling for major debt relief for Greece as well.
(BEGIN VIDEO CLIP)
MARIO DRAGHI, PRESIDENT, EUROPEAN CENTRAL BANK: It's uncontroversial that debt relief is necessary. And I think that nobody has ever disputed
that. The issue is, what is the best form of debt relief within our framework, within our legal, institutional framework.
(END VIDEO CLIP)
HARLOW: Those commitments came just hours after Greek lawmakers voted in favor of a third bailout for Greece, a bailout that came with very
strict austerity measures. The ECB's decision to unfreeze aid is a crucial piece of life support for that country. Greek banks now set to reopen on
Monday after being closed for three weeks.
At the same time, European finance ministers agreed to loan Greece $7.6 billion on an interim basis. That will help the country pay bills
that it has come due and it has coming due over the next few days. That includes a major $3.8 billion payment due to the ECB on Monday. The fear
was, without that bridge loan, Greece may have been kicked out of the euro.
The final lifeline did not come with any cash, but it came with the most significant thing in terms of putting Greece on a sustainable path.
It was the IMF's assertion that Greece needs major debt relief, not just austerity, and not just a longer payment timeline.
Let's talk about it with Angel Gurria. He's the secretary general of the OECD. In March, he called on Greek leaders to roll up their sleeves
and get on with reform. He joins me now from Pretoria. Thank you for being with me.
Let's talk about this new infusion of liquidity. When you look at it, do you think that this is enough to keep the Greek economy afloat?
ANGEL GURRIA, SECRETARY GENERAL, OECD: Well, the new appreciation of liquidity has to do with the liquidity of the banks --
HARLOW: Right.
GURRIA: -- basically. And the short-term decision the -- is going to bridge them over the next few weeks. It's going to allow them to pay the
ECB, the IMF itself. And then they have to deal with two lumps of payments.
One is the $20-odd billion maturities coming from bonds coming due that were bought in the time of Mr. Trichet at the ECB. And the other one
is, of course, a big lumping of maturities in the year of 2022.
All of those can be ironed out so that when you have the medium and the long-term solutions and you have all the policies in places, you do not
have these walls of maturities that could introduce an element of uncertainty.
HARLOW: You told my colleague, Richard Quest, the host of this program, earlier this year that under Tsipras, the Greek government, quote,
"deserves the benefit of the doubt." Fast forward to where we stand now. Do you believe that the Greek government can be trusted to really carry
out, carry through all of these things they've agreed to? All of these haircuts they've agreed to in this new deal?
GURRIA: Absolutely yes. We always did. We started working with them since the first day which Mr. Tsipras was confirmed by the parliament.
We've been working on the medium and long-term issues.
We've been looking at issues of more competition, fighting monopolies, geopolies, oligopolies, fighting corruption, being -- moving towards more
transparency, collecting taxes, and also on the questions of regulation.
And finally the question of how can we make the Greek state more functional in a number of areas so that beyond the commitments that they
make, these can be actually implemented and executed.
We have been working on the medium and the long term of Greece, because we believe -- we've always believed there was going to be tomorrow
after the deal was done. We always said there's not going to be Grexit.
We always said there's going to be a deal in the end, because the stakes were too high. And also because we do believe that the new
government with its new mandate is going to adhere to its commitments for the benefit of the medium and the long term of the Greek people.
[16:10:08] HARLOW: So, let's talk about what you and the OECD can do, because we know what the IMF has said, and they said you need to have
debt relief, otherwise this isn't going to work. But we also know what Germany and some of the others that hardline creditors in Europe are
saying, and that is that they have not been willing up until this point to give.
So, what is your role? If the IMF is sort of the checkbook, what is the OECD's role in this going forward, now, to get that debt relief?
GURRIA: Listen, we've been saying that you needed to deal with the debt a long time ago, and that's five years ago and four years ago, three
years ago, et cetera. We do two yearly full economic reviews of Greece. We've been consistently saying needed to deal with the debt.
But what is the situation today? The reprofiling, as it's been called, is what is possible today. What does that mean? Do away with this
lumpiness. Refinance.
It doesn't mean you're going to add a single penny to the debt of Greece. You're simply going to lend Greece resources in order to allow
Greece to face its maturities with the IMF and with the ECB and with the European Commission mechanisms. And then they will not have more debt,
they will simply have more time to repay its debts, the same amount of debt.
They can also work on reducing the interest payments and the grace periods, that is the time in which you start paying interest and the time
in which you start paying the actual principal, which effectively reduces what we call the present value, meaning how much is the real size of the
debt.
If you prolong it over time, give it a lot of grace periods and then reduce the interest payments, that will allow the debt not to be a yoke,
not to be hanging over like a Damocles sword of the recovery of Greece.
And the fundamentals now is to beyond the commitments to put the Greek fiscal position in place is to go structural. And going structural means
going with things that are medium and long term. It means, as I said, dealing with issues of efficiency of the government, dealing with the
questions of efficiency of collecting taxes.
And also competition. And also regulations. And also having to do with innovation and having to do with the modernization of the Greek
economy. These things are going to keep the drive, they're going to keep the growth going forward.
HARLOW: Angel Gurria, thank you very much. I know you and everyone trying to help has their work cut out for them. Appreciate you joining us
this evening on the program.
GURRIA: Thank you very much. We're working very hard, and I think it's going to happen.
HARLOW: Thank you, sir.
Travel and tourism account for nearly a fifth of the Greek economy. As the crisis there has escalated, we've seen some tourists canceling their
travel plans to Greece, pulling back. Let's talk about it with someone who knows how critical this sector is for Greece.
Joining me now, Panos Paleologos. He is the CEO of HotelBrain. Thank you for being with me, sir.
PANOS PALEOLOGOS, CEO, HOTELBRAIN: Good evening. Thank you.
HARLOW: Let's talk about the real impact, because last year, a record 24 million tourists visited Greece. They spent 13.5 billion euros. It is
a huge part of the economy. You run hotels. What has the real impact been for your business?
PALEOLOGOS: The last three weeks, especially after the prime minister of Greece talked about the referendum, and the following Monday that the
banks were closed, we had a very difficult situation.
First of all, we had to convince our people working in our hotels that we have to honor our guests, and that business must be as usual for all of
us. We all did an extra effort, and everything went very well.
The Greek bank announced that foreigners in Greece can use the ATMs and the banks, so they didn't have any problems with their credit cards and
the cost cards. So, it seems like we were calm and everything went well.
Now, of course we had some cancellations, but not as big numbers as somebody could suspect. And we had also reservations. But the demand for
the first beginning of July was low.
HARLOW: OK.
PALEOLOGOS: We are really positive now. We think that especially with the changes our parliament voted yesterday, and we see now things are
moving, and it was announced that the banks will open on Monday, everything will be back to normal. Not with the banks, but for Greek tourism it will
--
[16:15:03] HARLOW: Really?
PALEOLOGOS: -- it will certainly be. Yes.
HARLOW: Back to normal? That is -- that is very optimistic, sir, given the fact that part of this agreement is that the VAT, basically the
tax on hotels, is going to more than double.
PALEOLOGOS: Yes. I say back to normal because I really believe that we have a huge demand in Greece. And especially the last three weeks, we
have really received the support from people from Europe and everywhere. And that was a very nice feeling.
Now, VAT, of course, is going to increase. Our association, the hotel association, we propose Greece that if our country's in a very difficult
position, of course we want to contribute. So, the VAT was increased from 6.5 to 13.
This is bigger than the average of our competition. The competition in Europe is around 10. But let's be honest, we are in a difficult
situation, and all of us have to contribute to this new effort of our government and our country.
So, we mostly care to keep the demand for the Greek islands high, because last year was a record years, as you described, and we were -- we
had very positive results all this summer.
From the beginning of the problem with the Greek economy since 2009, I have to tell you, I've seen a transformation of the Greek tourism. We've
changed our model. As you know, in Greece, most of the hotels are not big hotels. They are mostly family-owned. All Greek hoteliers, they have paid
a lot of attention to their product, to the service provided.
And of course, the rates are fantastic now in Greece. No, I think there is no need to speak about our season, about our landscape. It's
lovely. And we feel -- we feel that maybe last year was a record year. We hope this year will be the same.
HARLOW: OK.
PALEOLOGOS: And we hope and we -- that all the three past difficult weeks will be a small parentheses, and we must go on. But we have to keep
in mind, we have to try even harder, the Greek businessmen, the people working in our hotels, the people who are involved in tourism.
HARLOW: Yes.
PALEOLOGOS: People that work in tourism in Greece are the ambassadors of Greece. People that have visited Greece, they know the type of people
we are --
(CROSSTALK)
HARLOW: And --
PALEOLOGOS: -- we like hospitality.
HARLOW: And sir, Panos, I am one of them. I have spent lovely weeks --
PALEOLOGOS: Great.
HARLOW: -- in your beautiful country, so we wish you and all of your peers all of the best in what is ahead. I know it's been a very difficult
time. Panos Paleologos, thank you very much.
PALEOLOGOS: Thank you for your support. Thank you.
HARLOW: Of course. Well, on a historic visit to a US jail, President Obama says America must reform its prison system. We'll show you his visit
and tell you more about it next.
(COMMERCIAL BREAK)
HARLOW: US president Barack Obama is calling on the legislature to overhaul America's bloated prison system. He met with inmates and
inspected cells at the El Reno Correctional Institution today. It is a historic visit because it makes him the first ever sitting US president to
visit a federal prison.
[16:20:00] He vowed to make prison reform a central focus for the remainder of his term as president. Speaking to reporters earlier, he said
Americans need to rethink the prison system as a whole.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I think we have a tendency sometimes to almost take for granted or think it's normal that so
many young people end up in our criminal justice system. It's not normal. It's not what happens in other countries.
(END VIDEO CLIP)
HARLOW: Well, the president's call for reform comes as America's prison population continues to grow both in size and in cost. It is really
staggering when you look at the numbers.
The total population of US prisons has increased by 700 percent in the past 40 years, and the ballooning number of inmates is placing an increased
strain on US taxpayers. Roughly 2.4 million men and women in this country are currently in prison. That is more than the largest 35 European nations
combined.
Each of those prisons costs the United States on average about $29,000 per year per prisoner. In total, the American prison system costs
taxpayers in the United States $39 billion every year.
I'm joined now by Bernard Kerik, he is the former New York City Police Commissioner. After his time with the NYPD, he served time in a federal
prison after pleading guilty to tax fraud. He joins me now via Skype.
Thank you for being with me, sir. Another staggering number to throw out there for you: about 2,000 people in US prisons right now serving a
life sentence are there for non-violent offenses. Where does the reform begin?
BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: Well, I think one of the most important things are the mandatory minimum sentencing
guidelines. I think that's something the president has looked at. There has to be some point in time where you do your time and pay your debt to
society. That's not the case today.
You know, Poppy, you mentioned the 2.4 million people that are in prisons today. Well, those people are in for felonies. They're going to
get out of prison, and for the rest of their lives, they're going to be a convicted felon.
That punishment never ends, which means we are creating a permanent under class of American citizens and removing those people from the
American workforce, which in dollars is trillions of dollars over and above the cost of incarceration of what it costs for the prison population.
So, I think the president's on the right track. I think we have a bipartisan movement right now in both sides, the House and Senate, and I
think we have to push forward to make some of these real reforms.
HARLOW: President Obama has commuted 90 prison sentences. And that doesn't mean he's gotten rid of them, it means he sort of lowered those
prison sentences. But that is the most of any US president since Lyndon Johnson. It's more than his four predecessors.
But doesn't it go beyond reforming the prison system to actually reforming opportunity when you look at the recidivism rates and you look at
how hard it is to get a job when you get out of prison?
KERIK: Well, that's -- and that's exactly what I'm talking about. That -- there's the biggest problem. We are locking people up for ethics
violations, for civil violations, for administrative violations. We're turning them into criminals.
Commercial fishermen that catch too many fish. They catch the wrong size fish. Somebody enhances their income on a mortgage application, we
make them a convicted felon instead of fining them or suspending the fishing license, or whatever the case may be.
There's ways to hold people accountable without turning them into convicted felons. And when we do that, we physically take them out of the
workforce for eternity, for the rest of their lives. And that's what's causing enormous economic damage to this country, to families, and to
children.
HARLOW: I think there is hope, though, because it's not only the president that's calling for reform. You've got Republicans, major donors,
like the Koch brothers calling for reform, you have Republican senator and presidential candidate Rand Paul proposing legislation for reform.
So this very much does seem to be something that has bipartisan support. Bernard Kerik, thank you very much, sir, for your expertise.
Coming up next after the break, he is rich, he is controversial, and he is riding sky high in the polls. How does Donald Trump do it? We'll
talk about it next.
[16:24:31] (COMMERCIAL BREAK)
HARLOW: How much is Donald Trump worth? Do you know? Who knows? The businessman turned Republican presidential candidate said this week
that he is worth $10 billion. His worth has varied throughout the years, as his political affiliation has as well.
Trump was flying high in the 1980s, and 1989 he made the Forbes list of billionaires for the first time with an estimated worth of $1.5 billion.
At the time, he was a registered Republican.
But when the real estate market really declined here in the early 90s, some of his casinos in Atlantic City went bankrupt. He made his comeback
in 1996. Forbes again put him on their list, pegging his worth at $450 million. Then by 2000, Forbes said he was a billionaire again.
He also registered as an Independent in 2000, and since then, he has given estimates ranging from $5 billion to $10 billion. Some analysts
estimate that it's lower than there. Donald Trump has also spent eight years as a registered Democrat before returning to the GOP and now making
his run for the White House.
Despite his ups and downs and controversies, Donald Trump remains really popular with American voters so far. CNN senior media correspondent
Brian Stelter with me now to talk about the evolution of Donald Trump.
Ten billion dollars, this is what he says in this press release. We don't have the SEC numbers yet. We don't have the official numbers yet.
When do we get those?
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: It could be today, it could be tomorrow, it could be next week. It takes a little while for the
government to actually release these documents. But Trump says he has not filed them.
That's a big deal, because some people thought he wouldn't go this far. Some people thought he wouldn't run for president at all.
HARLOW: Right.
STELTER: Then they thought he wouldn't submit the paperwork to be a presidential nominee. Then he did that. Now, he's actually gone ahead and
submitted his financial documents, which were the greatest hurdle yet.
A lot of people thought maybe he'd drop out of the race rather than have to file these documents and show how wealthy he is. Because like you
mentioned, some analysts are very skeptical --
HARLOW: Right.
STELTER: -- that he's really worth this much money. He says $10 billion. A lot of people think it might be a lot lower than that. So,
these documents will give us a real glimpse for the first time.
HARLOW: And it matters when you're talking about someone who says I'm going to fund my entire campaign.
STELTER: Right.
HARLOW: It really matters.
STELTER: Right.
HARLOW: Some interesting numbers that stood out. He says he made -- or we know he made $200 million on "The Apprentice"?
STELTER: Two hundred and thirteen million, to be precise. Now, that is the kind of number, betting back to those skeptics, that's a very hard
number to believe. But if you think about it this way, he did 14 seasons of the show, that would be $15 million per season.
It's hard to imagine NBC offered him that much when the show started, but maybe, just maybe, over time, as the show got more successful, maybe he
got fatter contracts. He may have also had a small ownership stake. That part's unclear.
But I'll tell you, Poppy, NBC won't comment. NBC won't confirm this number. So, I myself am a bit skeptical of it. That said, though, TV does
pay well when you're Donald Trump, when you're on the top.
HARLOW: What's in it for them, right, to jump in and fight with Trump about this?
STELTER: Exactly. Exactly.
HARLOW: But he has been, Brian -- I mean, you have a perfect sort of media eye, and when you look at him, he's been the most accessible in the
race.
STELTER: Yes. That's a big difference in the GOP race between Donald Trump and pretty much every other candidate. The reason why we're talking
about his financials, the reason why we're talking about his point of view on immigration and on everything else is because he's so accessible. He
responds to the press, he gives a lot of interviews, he's very quotable.
Just now today on Twitter, he's bashing an anchor on MSNBC, Lawrence O'Donnell, because Lawrence O'Donnell doesn't believe his financials. So,
he engages, he fights, he fights back. And that's unlike any other candidate. It's one of the reasons why Trump is getting so much press
attention, and it's one of the reasons why the polls are suggesting that a lot of GOP primary voters really like him.
HARLOW: And he's going to be in those debates starting August 6th.
STELTER: Just in a couple of weeks. I mean, the debates are right around the corner. Trump, as it stands now, will be on the stage. And
that's essentially going to be the Trump show.
HARLOW: Wow.
STELTER: I mean, with Donald Trump on the stage, he's going to have so much of the oxygen in that room, I have a feeling him -- his role of
shaping the primary season has just started. Because these debates are the next big step.
HARLOW: Absolutely. Brian Stelter, thank you very much.
STELTER: Thanks.
[16:30:01] HARLOW: We'll keep watching Trump.
Next, we will talk about the impact of the Iranian nuclear deal on the oil business. There were celebrations in the streets of Tehran, but the
struggling Asian oil industry has nothing to cheer about.
(COMMERCIAL BREAK)
[16:30:12] HARLOW: -- Let's keep watching Trump. Next, we will talk about the impact of the Iranian nuclear deal on the oil business.
There were celebrations in the streets of Tehran but the struggling Asian oil industry has nothing to cheer about.
(COMMERCIAL BREAK)
HARLOW: Hello, I'm Poppy Harlow. There is much more "Quest Means Business" in just a moment. Google, just releasing its second-quarter
earnings and the market, liking what it sees. Also, imagine how long it takes to get a million air miles.
Before that though this is CNN and on this network, the news always comes first. Four U.S. Marines are dead in two separate shootings at
military centers in Tennessee. The suspected gunman was also killed. In a statement released just a few moments ago, the Navy describes the shootings
as devastating and senseless.
Witnesses describe what they saw.
(BEGIN VIDEOCLIP)
Female: We heard a loud pop, and so the owner of the salon and I went to the window to see what was going on. And when we got to the window to
see what was going on, we saw the silver convertible Mustang and he was just unloading some type of large rifle.
Female 2. He just pulled up and I didn't think anything of it. He had his drop top and he looked to the side and next thing you know, he
lifted up his arms like this with a big black gun and just - it was one shot and then it was just endless shots - one after another just unloading
into the army.
(END VIDEOCLIP)
HARLOW: The jury in the trial of suspected Colorado theater shooter James Holmes has reached a verdict. It will be announced in about an hour
and a half's time from now. Holmes is accused of killing 12 people and wounding another 70 in the 2012 mass shooting.
The Obama administration is trying to ease Israel's security concerns after the Iranian nuclear deal Washington offering to increase military aid
to Israel according to "The New York Times," but Israel isn't talking with the U.S. about it right now. It's still lobbying against the deal trying
to convince the U.S. Congress to reject it.
Greek banks and their closures have been extended through Sunday. That announcement came just hours after the European Central Bank raised
its cap on its emergency lending program for those three banks.
ECB President Mario Draghi called for Greek debt relief and said the burden of the reforms rest on the Greek government.
(BEGIN VIDEOCLIP)
MARIO DRAGHI, EUROPEAN CENTRAL BANK PRESIDENT: No matter whom you talk to, there are outside questions about the implementation, will and
capacity. And so it will be - that's why I said - it will be really in the Greek government capacity to respond with policy decisions, with actions
that would dispel these doubts.
[16:35:18] HARLOW: Mexico says it is now working with the United States in a hunt for escaped drug lord Joaquin "El Chapo" Guzman.
This is video came inside his cell just before disappearing into a hidden tunnel on Saturday. Dozens of people have been questioned and
nearly $4 million in reward money is being offered.
All right, we have breaking news - this coming in to us at CNN. Tennessee shooter - the shooter at those two separate shootings in
Chattanooga, Tennessee today who took the lives of four marines and injured at least two others has been name. His name according to sources telling
CNN is Mohammad Yousef Abdul Aziz.
Again, the shooter's name -- Mohammad Yousef Abdul Aziz - born in 1990. We will bring you more developments on that tragic story as we have
them.
Meanwhile, Israel's Prime Minister Benjamin Netanyahu has been sparring publicly with Britain's foreign secretary over the Iranian nuclear
deal. Benjamin Netanyahu stuck to his stance that the deal which should see sanctions against Iran ease was a big mistake.
Those working in Asia's oil services industry are also not fans of the deal. For them it could mean a slowdown and things were not at a great
place to begin with. CNN's Andrew Stevens reports.
(BEGIN VIDEOCLIP)
ANDREW STEVENS, CNN ASIAN-PACIFIC EDITOR: Celebrations on the streets of Tehran after a deal that's reshaping relations between Iran and the West
with both sides claiming victory. In exchange to limits on its nuclear activity, Iran will get relief from sanctions.
Eventually that could mean a global market for its huge oil reserves, and that would keep downward pressure on prices for some time to come. And
for Asia that's bad news. The oil industry here is already struggling after the price of crude more than halved.
New, unused rigs clog Singapore's harbor - the hub of Southeast Asia's oil trading and services industry.
THOMAS TAN, CEO, KIM HONG OFFSHORE & MARINE HOLDINGS, LLC: The oil companies, the oil major cities suspended a lot of drilling activities.
STEVENS: Oil services chief Thomas Tan says producers right now don't want any more of these $200 million platforms. Low prices mean some firms
would rather cancel operations than drill and have to spend $70,000 a day just to maintain the rigs. Less than half of all offshore rigs in
Southeast Asia are producing any oil at all - just 61 out of 123. Outside the U.S., that's the lowest rate in the world.
TAN: There's a lot of overcapacity and also there are a lot of new rigs coming to delivery this year. This year could be in the region of
about, say, 70 rigs will be ready for delivery and there are no contraction.
STEVENS: Experts say this doesn't look like just short-term pain for producers and that prices could remain weak for years.
JEFF BROWN, PRESIDENT, FACTS GLOBAL ENERGY: Once we get past 2020, then we start to prices recover again. Because partly what's been
happening is capex is falling, people aren't spending as much, demand does continue to grow even if it's not as fast and then you start to get
pressure on the market again.
STEVENS: The days of $100 a barrel of oil are a fading memory, and looking forward, a distant dream. Andrew Stevens, CNN Singapore.
(END VIDEOCLIP)
HARLOW: Coming up next, a stellar session from Netflix helps propel the NASDAQ to an all-time high. We will tell you about the winners and the
losers from today's corporate earnings straight ahead.
(COMMERCIAL BREAK)
[16:41:26] HARLOW: Here in the U.S., markets have just closed and the session ended on a positive note. The Dow Jones Industrial average edging
up 70 points. Meantime, the NASDAQ, the star of the day, closing at an all-time high. The jump fueled in large part by one stock - Netflix -
skyrocketing more than 18 percent after last night's stellar earnings report.
The online streaming giant receiving no less than 34 nods during today's Emmy nominations.
Thursday was the busiest day of U.S. earning season thus far. In the last hour, Google topped analysts' expectations with its second-quarter
numbers. Financial powerhouses - Goldman Sachs and Citigroup also reported. Let's talk about all of it with CNNMoney digital correspondent
Paul La Monica.
A big day. We've got to start with Netflix. I mean, you were here on the program last night, we were talking about the huge increase in
subscribers and investors loved it.
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yes, Wall Street clearly went nuts for Netflix today. The stock at an all-time high - its
market value is near $50 billion.
HARLOW: Wow!
LA MONICA: To put into perspective, Netflix's market value is almost more than both of Sumner Redstone's old media companies - CBS and Viacom -
combined. Netflix is clearly a real media company. Call it a new media company if you want, it's a legitimate content creator.
HARLOW: Wow.
LA MONICA: And they got that validation from the Emmy's as well.
HARLOW: Yes - 34 nods.
LA MONICA: "House of Cards," "Orange is the New Black," it's just amazing.
HARLOW: It's remarkable. Google - really strong numbers across the board.
LA MONICA: Yes.
HARLOW: What (CROSS TALK) to you?
LA MONICA: Google I think had been underestimated if you could say that about a company that's as large and dominant as Google, but so many
people have been talking about how Facebook is really emerging as a legitimate threat to Google, particularly with video apps now -
HARLOW: Right.
LA MONICA: -- but you can't sleep on Google. The numbers were really fantastic, the paid click growth to what people are actually clicking on so
advertisers get, you know, something from that -
HARLOW: Right.
LA MONICA: -- up 18 percent in the last quarter. That's very, very strong. I think investors are also hoping that maybe Google will have a
little bit more discipline on the cost side now that you have new CFO Ruth Porat, you know, formerly -
HARLOW: From Morgan Stanley.
LA MONICA: -- Morgan Stanley. So there's hopes that she's going to have maybe a little bit more discipline but also possibly some interesting
acquisitions as well because of her investment banking ties.
HARLOW: Yes. The bank - speaking of investment banking - Goldman versus Citi.
LA MONICA: Yes. Goldman - their numbers were a little disappointment. They got a hit basically - they got hit on fixed income
trading. That was a problem for them - very volatile bond markets right now with everything that's going on in Europe.
But the big problem with Goldman was that they had to account for more legal expenses. They're like the major bank that hasn't really settled
most of their mortgage problems while everyone else has, including Citi. Citi's results - they're really on the mend now. This was their best
profit in eight years. It does seem as if they are finally getting back on track. But, again, the expectations are a lot lower for Citi than Goldman.
HARLOW: Yes. All right. Paul La Monica on the earnings for us. Thank you very much, --
LA MONICA: Thank you.
HARLOW: -- Paul, we appreciate it. Right now we are going to take you to our sister network, CNN for breaking news on those horrific
Chattanooga, Tennessee shootings. Let's listen in.
END
