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Quest Means Business
Malaysia Reports Parts of Windows, Seats Found; ATSB "Confident" in MH370 Search; Conflicting Info from France, Malaysia; Dow Has Grim Day; Bank of England Keeps Interest Rates on Hold; European Markets Mostly Flat; Tech Companies Increase Paternal Leave; Argument Against Extended Maternity Leave
Aired August 06, 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)
RICHARD QUEST, HOST: The bell is ringing at the New York Stock Exchange, whilst the Dow Jones Industrials is off nearly 118 points as the
trading day comes to an end. Hit the gavel.
(GAVEL POUNDS)
QUEST: A good, solid gavel on Thursday, August the 6th.
The search steps up for MH370. In a moment, speaking live to Australia's Transport Safety chief on the program.
Lower for longer. The Bank of England hints a rate rise is some way off.
And no one was safe from satire, even me. Jon Stewart signs off from the Daily Show, and we all take a beating. I'm Richard Quest, I mean
business.
Good evening. We begin tonight as Malaysian officials say that new aircraft debris has been found on Reunion Island.
(BEGIN VIDEO CLIP)
LIOW TIONG LAI, MALAYSIAN TRANSPORT MINISTER: The team told us that they have managed to collect more debris at the island, and we have handed
over to the authorities in France to -- well, window -- plane window and there are also some aluminum foil -- there are many items. I can itemize
one by one, but there are many items collected, and we have sent to the authorities for verification. But I cannot conform it's MH370, OK? All
these need to be verified.
(END VIDEO CLIP)
QUEST: A most extraordinary announcement, a plane window, aluminum, all made after the Malaysian prime minister said the flaperon that washed
up on Reunion last week was, in his words, "conclusively" from MH370.
The investigators in France, the prosecutors, were less certain, saying more tests were needed. And reacting to today's announcement,
police on Reunion Island said nothing definite had been turned in over the last week.
So, it all begs the question, what on earth have they found, if anything, and where is it? The French government has announced that the
search for debris is expanding. New aerial and maritime capabilities are to be deployed off the coast of Reunion. And Malaysia says it's asked
officials in Mauritius and Madagascar also to be on the alert.
Overall responsibility rests with Malaysia for the investigation. They have delegated the search authority to Australia, which is leading the
underwater search off the western coast of the country. The Australian Transport Safety Board's chief commissioner says he's confident, very
confident, that he's searching in the right area.
Martin Dolan joins me now on the line from Cairns in Queensland. To begin, can you hear me, Mr. Dolan?
MARTIN DOLAN, CHIEF COMMISSIONER, AUSTRALIAN TRANSPORT SAFETY BOARD (via telephone): Yes, I can.
QUEST: So, let's start with this question of the flaperon and your understanding of whether this flaperon is from MH370. Are you as
conclusive as the Malaysian prime minister?
DOLAN: Not quite. From our perspective at this stage, we consider it highly probable that it's associated with MH370. I haven't had a detailed
report on the second day of examination of the part It is clearly and exclusively a 777 flaperon. There's no evidence that we and the team are
aware of that would indicate it's the flaperon, as I've said, of any other aircraft. But --
QUEST: Right.
DOLAN: -- there's a very careful process of being absolutely sure, which is still underway.
QUEST: And with that in mind, this -- these reports of further debris -- you'll have heard the transport minister there -- what more, perhaps,
can you tell us?
DOLAN: There's a very extensive process of collecting all items that could possibly be associated with MH370. To my knowledge at this stage,
nothing that has been retrieved has yet been confirmed to be associated with an aircraft, let alone MH370.
But that work continues to see if there can be any other clues. Our modeling of how aircraft debris would have drifted in the Indian Ocean
indicates that a considerable amount of debris would have moved west --
[16:05:01] QUEST: Right.
DOLAN: -- would have reached Reunion Island, Madagascar, and other places. So, there's very good reason to be continuing to look throughout
the area.
QUEST: So, as I understand it, whatever debris as may have been found, do you even know where it is? Is it still on Reunion? Has it been
sent to France? There's a lot of confusion tonight, isn't there, sir, over what's been found where and where it is now?
DOLAN: As we understand it, such possible aircraft debris as has been retrieved is still on Reunion other than the flaperon and the remnant of a
bag, which were sent to France. So, work is going on in Reunion to look at the various things that have been retrieved to see if any of them can be
associated with an aircraft.
QUEST: Right.
DOLAN: A number of items have been already examined and eliminated. There was a bit of a flurry a few days ago where there was a view that
there was an aircraft door, which turned out to be, apparently, domestic (inaudible).
QUEST: Right.
DOLAN: So, each is being examined carefully on its merits to see if it can give us any clue to MH370.
QUEST: Funny, I read the updates that we got from the agency, from the board yesterday. Ships -- by and large are still searching. You've
just about searched half of the expanded 120,000 square kilometers.
Obviously, what's happening on Reunion maybe, maybe not adds credibility to where you're searching. But do you still remain confident
in the zone, and -- and, sir -- that you're going to find something there?
DOLAN: We remain very confident in the zone. The work that has been done by an international group of experts on (inaudible) the satellite data
associated with the aircraft has led to we consider a quite high probability the aircraft will be in the search area.
And as you say, we've searched about half of that area, and we're seeing the results over an extended period of time --
QUEST: Right.
DOLAN: -- of what vessels, equipment, and crew are doing. And we're very confident in the results. If the aircraft is in that area, which is
highly probable, then we will find it.
QUEST: Martin Dolan, sir, thank you, as always, for joining us. We appreciate it.
Now, today's events proved once again what has been lacking, perhaps, through the investigation is consistency. The conflicting statements from
the various countries, the officials seemingly backtracking over releasing information, and news delivered by text. The families of the 239
passengers and crew seem to be caught in the middle.
Ghyslain Wattrelos, his wife and two of his children were aboard that aircraft, and Mr. Wattrelos joins me now on the line from Paris. Sir,
these, I realize, are extremely difficult moments for you. When you hear the news, first of all, do you accept what you're being told?
GHYSLAIN WATTRELOS, LOST WIFE, TWO CHILDREN ON MH370: I don't know what to accept, because the news today is we found the debris, and today I
just saw the prosecutor two hours ago when we heard of it, and he told me he has absolutely no proof that this debris is coming from 370.
Obviously, we don't see what the other plane it can come from, but today, there is no proof that it's coming from this. I don't understand
why Malaysia said so quickly it is obviously from 370.
QUEST: So, from what --
WATTRELOS: So, it's always the same. It's been like this for 16 months.
QUEST: So, you're telling me tonight that the prosecutor told you that there really is no hard and fast linkage, evidence, from this plane to
370, other than the natural supposition that it must have been 370.
WATTRELOS: No. They are sure that it's from a Boeing 777, and that's it for the moment. We have absolutely no hard proof that it's coming from
370. And they still need to investigate, and they still need (inaudible) on the documents from Malaysian Airlines, especially on maintenance or
reparation that may have been done on that article, perhaps to prove it is that part.
Because the most important thing is, you know there is a kind of -- I don't know how you say that, but -- Registration cards --
QUEST: Yes.
WATTRELOS: -- with all the numbers. And this card is not anymore on that part. So, there is no proof today that it's coming from 370
[16:10:10] QUEST: What do you believe, sir? What do you believe?
WATTRELOS: What do I believe? I don't know what to believe anymore. I strongly believe that somebody took the plane. This plane was hijacked
at one moment. And then, I don't know. And then, I had -- so far, I had three different theories.
One theory is that this plane could have landed somewhere. The other one was this plane was shot down because there was a hijacker in it. The
last one is there was a kind of accident or technical problem that put that plane down.
QUEST: Right.
WATTRELOS: But today, I don't know. So, it seems today if this debris if from 370, only two theories are left.
QUEST: So, do you get -- and I think I know the answer here -- are you getting any form of closure, any form of understanding from what you've
heard about this flaperon found on Reunion, that the plane probably did go down in the Indian Ocean?
WATTRELOS: No. But what I can tell you, I find it very suspicious that after 16 months we find only one debris. It's always what I said. I
said, if there is crash in the ocean, then we should have hundreds of debris. We saw that with the Rio to Paris flight.
Every time there is a crash -- into the sea, there is a lot of debris. So, if this debris is from 370, we should have found many other debris, or
we should find them now. If we find only one debris, it's very suspicious to me.
And what it proves also is it proves that the search area is not the right one, because if there are debris, I think we can quite very quickly
to the search area, we should have found them very quickly. So, it's fine that the search area is not the right one.
QUEST: Sir, thank you for joining us. We'll talk more as further developments take place. We appreciate you giving us time.
Mary Schiavo is with me, listening carefully there, I'm sure, Mary, to Ghyslain Wattrelos. You've met many families. What do you make of what
you heard?
MARY SCHIAVO, CNN AVIATION ANALYST: Well, I think it's just terribly confusing, and it's unnecessarily so. For example, the pictures of the
flaperon were flashed all around the world on the world on the news and people could see it and at least get some understanding of what it was.
And now we're being told there are many pieces of debris, including a seat and a window panel. There are pictures of the window panel out there.
But the confusion and the mystery is unnecessary. For example, in the case of the seat, we have a federal aviation regulation, it's 25.8.53, it
sets out how a seat has to be constructed. You've got the foam layer, you've got the fire blocking layer, and then you've got the dress cover,
and the stitching's even specified.
If they want to get to the bottom of this, the secrecy isn't helping, and I think it just must be unbearable to the families.
QUEST: It is extraordinary, isn't it? There are reports that the Malaysian Airlines people have said they recognized a seal on the -- a
maintenance seal. They've recognized the paint, and they've recognized the serial number. But now we're hearing that there may not be a serial number
there. You're dying to jump in. Jump in.
SCHIAVO: Well, I think, reading between the lines -- and that's all anyone can do, and like I said, my heart just breaks for the families,
because they haven't -- like you and I, they haven't had years of aviation experience.
But reading between the lines, it sounds like there was a repair. And of course, on the repair, you have to have the marking, that it was an
approved repair and some kind of recordation in the maintenance manuals.
And that's what it sounds like, very sketchy, but that's what it sounds lie to. And that would identify that part. But from the stuff that
they're picking up, it just does not sound like anyone has made any determination that is aircraft debris.
QUEST: Mary, thank you. Thank you for joining us, I appreciate it.
SCHIAVO: Thank you, Richard.
QUEST: "Shambles" is the only word for the way it can be described at the moment. We'll talk about it at the end of the program in "The
Profitable Moment."
It's Super Thursday in the United Kingdom. The Bank of England gives new clues about long-anticipated interest rate rise. We'll talk about
that. Will the rate rise?
(RINGS BELL)
QUEST: QUEST MEANS BUSINESS.
[16:14:33] (COMMERCIAL BREAK)
QUEST: "Grim" is the word as the Dow Jones Industrials lost more than 100 points -- 120 points, 17,419. This is the sixth straight day of
declines for the Dow, and Wall Street is bracing for the Friday's July employment report, what it could mean for the markets and for the timing of
the US interest rate hike.
"Data dependent." You're going to hear that word a great deal in the next five minutes, because today is called "Super Tuesday," or Thursday,
even, for Britain's Bank of England. Not only on Super Thursday did they decide to hold rates steady, we got minutes of the Bank of England's
monetary policy committee, and we got an inflation report.
The minutes showed eight members voted against raising interest rates, while there was one just in favor of raising rates, a good old hawk, Ian
McCafferty. The others all in favor of holding rates for the moment.
The one-sided vote has left many predicting that the rate hike won't come until early next year. Because you do need to bring more across, and
that tends to take time. Governor Mark Carney says he's going to let the data decide.
(BEGIN VIDEO CLIP)
MARK CARNEY, GOVERNOR, BANK OF ENGLAND: The likely timing of the first bank rate increase is drawing closer. However, the exact timing of
the first move cannot be predicted in advance. It will be the product of economic developments and prospects. In short, it will be data dependent.
(END VIDEO CLIP)
QUEST: I promise you, "data dependent" galore. And these are the data dependent facts that the BOE is looking at. First of all, on the hike
-- well, first of all, you're getting stronger GDP numbers that are adding weight on this side of the balance for a rate rise sooner rather than
later.
And if you look at wage growth at around 4 percent, you get a good strong wage rise. GDP is fast, rising wages is high, hikes should be
imminent.
But Carney warned that a combination of negative factors are giving cause for concern. You've got inflation on the other side. It's still
only half a percent, and that's well under the Bank of England's 2 percent target range. So, raising rates would put that possibly even further away.
And add in low pound -- low oil price, a strong pound, it all continues to weigh along with the cautious jobs outlook, which has taken
place. The UK has had strong job growth, but that might be petering out at the moment. Let's talk all about this with our guest. Adam Posen joins me
now. Former resident dove at the --
(LAUGHTER)
QUEST: -- Monetary Policy Committee, now at the Institute for International Economics, joins me from Washington. If you had been sitting
there today, I'm guessing, you're on the hold side as well.
ADAM POSEN, INSTITUTE FOR INTERNATIONAL ECONOMICS: Oh, sure, I would've gone with the majority, or the majority would have gone with me
and there would have been a vote for no rate hike. The data isn't quite as hawkish as you make it out to be, Richard.
Participation has been going the wrong way. The labor market's a little softer. And there's been no wage hikes for a long while, so having
a bit of one quarter of wage hikes isn't necessarily inflationary.
QUEST: So, "data dependent," I think you probably go to bed with those words etched on --
POSEN: Yes.
QUEST: -- your pillow. Data dependent, what data are you looking at, or would you be looking at?
POSEN: I think the list you mentioned was about right, but it's missing two things. First is, you've got to look at the productivity
numbers. The productivity numbers in Britain have been lousy for several years. I and many other people think that that's because the data's,
frankly, wrong.
[16:20:06] If the productivity numbers continue to come back strong, as they did recently, that gives you more room before you have to raise
rates.
QUEST: You --
POSEN: The second number you've got to look -- sorry.
QUEST: So, please, finish your second point.
POSEN: No, no. Just, the second number to look at is you've got to look at labor force participation. One of the things that's been really
important in the UK is they've added a huge number of jobs in the last several years. If that slows down, there you're absolutely right, then you
might have labor pressures.
QUEST: You are critical of what one might describe as the verbal diarrhea -- that's my words, not yours, Adam, I hasten to make.
POSEN: Thank you.
QUEST: The way in which everybody's talking -- Fed governors talk, Bank of England members talk, MPC -- everybody's talking about what might
happen, and you don't think that's helpful, do you?
POSEN: No, I don't. And I may seem a little hypocritical because I was pretty loud when I was an MPC member. But I -- generally I had one
message, and I wasn't trying to forecast when rates would come up.
What we've had from both the Fed and especially from Governor Carney and the UK MPC is people making all kinds of statements about time
dependence, rates are coming, rates are this, rates are that, instead of talking about the data and the economics. And that's just confusing,
because then the data comes along, and they just have to whipsaw markets when they realize they were wrong.
So people, if they want to talk, should be talking about economics and where they view the economy, and they shouldn't be talking so much about
rates. Even the governor should not be talking so much about rates. He doesn't need to make news every time he opens his mouth.
Remember, Volcker and Greenspan made a point of not making news most of the time, and the previous governor --
(COUGHS)
POSEN: -- excuse me -- Lord King, made a point of only giving a few public statements a year. I think there is too much talk.
QUEST: We'll talk more about it in the future, sir. Please, delighted to have you on the program. Come back again.
POSEN: Thank you.
QUEST: Adam Posen joining us there. UK stocks shrugged off the Bank of England's rate decision, ending the session relatively flat. A similar
story across Europe, aside from one notable exception: the Greek market actually snapped its recent streak of losses, thanks to a rebound in the
banking stocks.
Major tech companies are increasing maternity and paternity leaves, which sounds like great news for newborns and their parents. So, we're
going to discuss why some believe it is bad for business. We'll talk about that, QUEST MEANS BUSINESS, after the break.
(RINGS BELL)
(COMMERCIAL BREAK)
QUEST: Microsoft is picking up on the trend of the tech world. It's upping its paid maternity and paternity leave. New mothers and fathers can
now take up to 12 weeks off after their child is born. Birth mothers can qualify for an additional 8 weeks.
Microsoft is following the lead of Netflix, which announced it's offering unlimited parental leave for the first year after a baby is born
or adopted. Both parents can take off as much time as they wish during the 12 months.
The US is one of only three countries in the world that doesn't by law offer any paid maternity leave. In great company, they are -- Papua New
Guinea and Suriname. Now, mothers in Japan, Russia, and parts of Scandinavia get at least a year of paid leave. In places like Iran and
Venezuela, it's six months or more.
[16:25:00] At least one critic thinks increased paid maternity leave by law is a death knell for small business. He's Jay Miletsky, the CEO of
Sequel Media International. He joins me now. You say, sir, on that idea, the US as the developed nation, the only developed nation, these are
nonsensical, liberal arguments that justify and vilify corporations. What is so wrong with paid maternity leave?
JAY MILETSKY, CEO, SEQUEL MEDIA INTERNATIONAL: There's absolutely nothing wrong with paid maternity leave. In fact, actually, I congratulate
those companies for offering what they are offering. They can afford to do it. They can vie for the best employees because of it, and I have nothing
wrong with that.
What I have a problem with is when the idea of a company being mandated to offer paid maternity leave, when they very possibly can't
afford it. Netflix and Microsoft --
(CROSSTALK)
QUEST: So -- no, hang on.
MILETSKY: -- are very easy examples.
QUEST: The companies should budget for maternity leave like they budget for keeping the lights on, the photocopier, and the computers.
MILETSKY: That is -- when you're talking about a Netflix and a Microsoft, it's very easy to talk about budgeting like that. When you're
talking about the vast majority of very small businesses, people who are funding their own companies out of their pockets, they're working from
their basements, they're scrounging to make $400 rent in a small office space.
These people might need employees, and if they have, let's say, two employees, three employees, four employees, and one of them takes maternity
leave for an extended period of time, that's a huge percentage of their workforce.
QUEST: Right. So, let me push you. Would you be in favor of paid maternity leave by law for, say, large corporations?
MILETSKY: No.
QUEST: Well, your argument's just fallen apart.
MILETSKY: It has not. What I've said is that I congratulate those companies for doing it, and I --
(CROSSTALK)
QUEST: But you've just said --
MILETSKY: -- and that's terrific --
QUEST: -- one of --
MILETSKY: -- that's terrific that they can afford to do it, but that's their choice. They're choosing to do that because that is their way
of competing --
QUEST: What about social policy?
MILETSKY: -- for better employees.
QUEST: Societal need? Fifty percent of the population are going to give birth, give or take. Shouldn't we, as a society, say let's give them
a bit of a help?
MILETSKY: Even if we're going to say let's give them a bit of a help, let's just take that premise, why does the company need to shoulder the
responsibility for the family in question having to budget their own money? They have to say, hey, we're going to have a child, we should budget, make
sure that we can afford a child.
Why does the company in question have to shoulder that responsibility? The money that they're going to be paying and that's being paid in that
salary is going to go towards mortgages and cars and whatever else, so should the banks forgive mortgages?
(CROSSTALK)
QUEST: Because it's the right thing to do.
MILETSKY: It's not the right thing to do for a company. The federal government does not have the place --
QUEST: But what about -- what about a stakeholder economy? Because you say the purpose of companies is to generate profits for their
investors.
MILETSKY: Correct.
QUEST: But what about the concept of the stakeholder economy? In other words, we're all part -- I'm part of Time Warner, my colleagues are
part of Time Warner, you're part of your company, everybody has a stake.
MILETSKY: We all have a stake, but the purposes of starting a company is to make sure that we're bringing a positive value to the investors. I
start a company, I've got investors, those investors want to see me give them a positive return. That's why they're giving me money to start my
company.
I want to have -- I want -- I'm putting my hard-earned -- my blood, sweat, and tears into this company, I want to have a return for myself as
well. It's not the government's place to come in and say you have to pay this person this amount of money in order for -- even if they're not going
to be producing for you.
QUEST: Thank you very much, sir.
MILETSKY: You've got it. Thank you.
QUEST: You'll come back again?
MILETSKY: Would love to.
QUEST: We'll -- of course, he's got to get out of the building first, past half my female colleagues.
(LAUGHTER)
QUEST: We'll make sure he gets out in one piece. Maybe.
The stage is set for the biggest event of the Republican presidential race so far.
(RINGS BELL)
QUEST: All eyes are on the front-runner, Donald Trump, as he sets out to prove his mettle against a panel of seasoned political opponents. This
is QUEST MEANS BUSINESS.
[16:28:45] (COMMERCIAL BREAK)
[16:30:00] QUEST: Hello, I'm Richard Quest. More "Quest Means Business" in just a moment when we're going to look at how social media is a key
player in tonight's Republican debate.
And as the king of satire gets ready for his final bow, one American fast food chain is most certainly taking full advantage. But before all of
that, this is CNN and on this network the news always comes first.
Malaysian officials say new aircraft debris has been found on Reunion Island, the announcement made just hours after the prime minister said a
flaperon that washed up on the island was conclusively from MH370.
Speaking to me a few moments ago, the Australia Transport Safety Board's chief commissioner said the verification work to make that
conclusive decision is not yet done.
(BEGIN VIDEOCLIP)
MARTIN DOLAN, CHIEF COMMISSIONER, AUSTRALIA TRANSPORT SAFETY BOARD: We consider it highly probable that search of the MH370 I haven't had a
detailed report on the second day of examination of the part that is clearly and explicitly a 777 flaperon.
It is the very evidence that we on the team are aware of. And that would (inaudible) flaperon as I said if any other aircraft that -
QUEST: Right.
DOLAN: There's a very careful process to being absolutely sure.
(END VIDEOCLIP)
QUEST: The top ten Republican candidates for the U.S. presidency are getting ready to square off in the first primetime debate. Donald Trump
will look to cement his front-runner status while Jeb Bush and the others lagging behind.
They're going to have to try and make up some ground.
At least 13 people are dead and nine injured after a bomb attack at a Saudi mosque. Officials say the bomb went off during noon prayers.
Most of the dead were members of Saudi Arabia's special emergency forces. ISIS has reportedly claimed responsibility for the attack.
Egypt has opened a major extension of the Suez Canal. The $8 billion project was delivered within a year from the Egyptian President El-Sisi.
He says that by 2023 it will double the current number of trips traveling through the canal.
(BEGIN VIDEOCLIP)
ABDEL FATTAH EL-SISI, EGYPTIAN PRESIDENT VIA INTERPRETER: We promised the whole world that we will offer the new Suez Canal as a gift.
And here we are, we have fulfilled our promise - a promise that we have all taken in record time. We offer the world a new artery to welfare.
(END VIDEOCLIP)
(BEGIN VIDEOCLIP)
(BELL TOLLS)
QUEST: A somber anniversary in Japan as residents of Hiroshima mark 70 years since an atomic bomb devastated their city. The Prime Minister
Shinzo Abe joined millions of people across the country for a minute's silence, remembering the 200,000 people who died in Hiroshima (ph).
(END VIDEOCLIP)
QUEST: So, I've got something to show you. These are the top ten players in tonight's primetime Republican presidential debate. Well no,
they weren't. They were the ones who are voting on the monetary policy committee.
There are two debates that are taking place tonight. The first debate of course is going to be with the seven who don't make the full range and
then later, in primetime, you get the full ten who have made the cut.
Center stage will be Donald Trump. Facebook and Twitter are battling for social media supremacy in all of this. Facebook is co-hosting the
event with Fox News, using the debate to help launch its new video streaming service.
[16:35:06] The candidates have been posting questions they'd like to hear answered during tonight's debate on their various Facebook pages.
Twitter has turned its attention to ordinary voters. The site is buzzing with questions that users want to hear addressed. And in the last
few hours, Republican frontrunner Donald Trump has tweeted this. He's saying he's looking forward to tonight's debate. I do love the way
'debate' is inverted commas. "But look far more forward to making America great again. It can happen."
To help me countdown to the main event, Dana Bash joins me from Cleveland, Ohio. I'm guessing in many years of covering debates and
politics, you along with many others have never seen anything quite like.
DANA BASH, CNN'S CHIEF CONGRESSIONAL CORRESPONDENT: No, I have never covered a political debate with a reality TV star as center stage. That is
absolutely true.
And beyond just the Trump factor which obviously is huge and may be overshadowing, this is the biggest field in modern history when you're
talking about Republicans. That's why we've had this issue with, as you mentioned, two different debates.
One is going to start in about 25 minutes - what they call the undercar debate and then the main event later tonight. I have been walking
around here just outside the arena in Cleveland where it's going to take place talking to many sort of grizzled veterans in the Republican Party.
And to a person they have all said that they are sort of most excited about this debate because the stakes are so incredibly high, Richard.
QUEST: Dana Bash, we will look forward to talking to you tomorrow when it's all over and done with. Thank you for joining us.
Now, Donald Trump will try to convince voters that he's more than just a summer romance. And there is indeed the list that we have been talking
about.
To do so, he has to compete against all these and most of which have been politicians throughout their life.
Some have got business backgrounds, none are as commercially successful as Mr. Trump. As Claire Sebastian reports, many of America's
business leaders remain unconvinced about the Donald.
(BEGIN VIDEOCLIP)
DONALD TRUMP, REPUBLICAN PRESIDENTIAL CANDIDATE: Well you know, a business person - a good one like me - I was a businessman. I made a
fortune.
CLAIRE SEBASTIAN, CNN PRODUCER: One of Donald Trump' favorite campaign past-times - trumpeting his business success even as these
controversial comments on immigration -
TRUMP: -- they're bringing crime, they're rapists.
SEBASTIAN: Led to the severing of several key business partnerships. Trump's brand has taken more than a few knocks in the early stages of the
campaign and his fellow business leaders - many of whom have admired his success for years - have been watching very closely.
Whether they still admire him, well that is dividing opinions. On one side we have Mitch Goldstone, president and CEO of ecommerce company
Scanmyphotos.com. In an open letter published in July, he accuses Trump of "tarnishing America's reputation abroad and damaging what is taught in
business schools."
MITCH GOLDSTONE, PRESIDENT AND CEO, SCANMYPHOTOS.COM: I'm looking for a candidate who celebrate diversity of people and ideas. Mr. Trump does
not.
SEBASTIAN: On the other side, Eric Schiffer, CEO of Patriarch Equity, a private equity firm.
ERIC SCHIFFER, CEO, PATRIARCH EQUITY: I would like to see us have a more fair trade policy and certainly one in which we ensure the jobs are
not going overseas to the extent that they are. And I think Trump would eliminate many of those things and ensure the business comes back.
SEBASTIAN: Mitch Goldstone says he hasn't seen enough proof of this.
GOLDSTONE: I'm looking for someone that embraces and supports small businesses. If you go to Mr. Trump's website, there's no policy statement,
there's a donate button and there's a list of all of his properties that he owns.
TRUMP: I'm a big job producer, I'm a big builder, --
SEBASTIAN: For Eric Schiffer, the Trump bluster is part of the appeal.
SCHIFFER: We're still talking about him - we're talking about his brand. And some might say that that is in and of itself a genius
capability.
SEBASTIAN: History has shown relatively few U.S. presidents started as entrepreneurs. It seems Trump has yet to convince America's business
leaders he can be next. Claire Sebastian, CNN New York.
(END VIDEOCLIP)
QUEST: Car prices after a five year low and I've been speaking to the head of one of the world's most successful mining companies - Randgold's
Mark Bristow on the prospects for gold.
(COMMERCIAL BREAK)
[16:41:41] QUEST: All the glitter isn't necessarily gold. Gold prices are struggling to pull out of five-year lows. This year the prices
are down from a high of $1,300.
I'll show you the way in which it has moved. So you get to about $1n301 at the beginning of the year and you tinker on down, then you go
back up again. And you end up way over at the end.
Now Randgold has been one of the top performing gold-mining stocks in the past decade. It finished slightly up on Thursday despite this sort of
movement on the share price.
I spoke to the Randgold chief executive Mark Bristow and wanted to know of course with a falling price - well of course he's got to still make
money with companies in an industry that seems to be in trouble.
(BEGIN VIDEOCLIP)
MARK BRISTOW, CEO, RANDGOLD RESOURCES: The problem with the industry as, again, I think we've talked about in the past is it's very good at
trying to grow in the peaks and, you know, deal with survival in the troughs and I've always tried to do the opposite and look to grow in the
troughs and maximize the benefits from the higher gold prices in the peaks.
QUEST: Right, but the sharp fall in the price of gold, even allowing for your $1,000 long-term price, it starts to look dodgy.
BRISTOW: Sure. But remember what is sharp? It's come from $1,900, Richard. And the sharp part of that fall has been the last $50 or perhaps
$100 because the industry's been living in denial of a change in the drivers in the gold price and at the same time continued to deliver
unprofitable gold as it did in the 90s during the hedging crisis into a market that although it's supportive on the demand side, it's
underappreciated certainly -
QUEST: Right. But -
BRISTOW: -- because we get put under pressure by oversupply.
QUEST: I'm just looking at the chart whilst we're talking and I look at a one-year chart and I see where, you know, the high point of $1,300 and
really the large fall has been in the last - I don't know - six months or so. That's been the large drop.
It's the factors behind that drop that suggest the recovery is not going to be sharp or near-dated in gold.
BRISTOW: Well I'm not sure about that because, you know, there's this big debate that gold isn't connected isn't connected to supply. I believe
it is and, you know, the bottom line is the gold industry is broke today as an industry and it can't continue at these gold prices.
QUEST: You have a low price, you have weakening demand, by your own admission competitors with a higher cost base will be taken out, which
leaves you, sir, either being an acquirer or having to cut back.
[16:45:02] BRISTOW: We want to make profits, so we will re-plan our business to continue to make profits, and with that, give us the - we will
retain the - opportunity to participate in perhaps picking up some of the very distressed but valuable assets in our industry.
(END VIDEOCLIP)
QUEST: That has to be the quote - the business quote of the day - "very distressed but valuable assets." "Business on the Move" -
(BEGIN VIDEOCLIP)
QUEST: Media stocks are taking a pounding for the second straight day. Disney was down nearly 2 percent after falling 9 and 1/2 yesterday.
Why? Investors are concerned it's all about cutting the cord and how getting rid of traditional cable in favor of streaming will affect
business.
Talking of new business, Tesla's stock was down almost 9 percent. The company has warned it will deliver fewer electric cars this year than
expected. It's also had to update software because of hackers.
Now to Oreos and Ritz crackers - favorites of investor William Ackman. His hedge fund has amassed $5 1/2 billion investment in Mondelez. The
maker of these treats may be a possible merger target, all of which is "Business on the Move."
(END VIDEOCLIP)
QUEST: Think of it as the final "Moment of Zen." Jon Stewart is leaving the anchor chair after 16 years.
(COMMERCIAL BREAK)
(BEGIN VIDEOCLIP)
(MUSIC FROM "THE DAILY SHOW WITH JON STEWART")
(END VIDEOCLIP)
QUEST: The show is almost over for Jon Stewart. Today is the comedian's last day in the anchor chair of the "The Daily Show." His 16-
year run lampooned politicians, the media and (RINGS BELL) me.
(BEGIN VIDEOCLIP)
JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": Do you want me to play Richard Quest?
Male: No.
STEWART: The British guy from CNN - he's their royal Roger (ph) -
Male: No.
STEWART: -- do you want me to play him?
Male: No, no, please. (WITH BRITISH ACCENT) - I beg of you. I'm appealing to you as one human being to another.
STEWART: Chuck, play Quest.
(CLIP OF RICHARD QUEST ON "QUEST MEANS BUSINESS" SHOW)
QUEST: Well it was one of those - to use a quaint English expression - storm in a teacup. Here at Davos, the view is that they need to deal
with inequality. It's a number one issue that people are talking about in the salons, in the bars, in the restaurants.
(END RICHARD QUEST CLIP)
STEWART (IMITATING QUEST): Yes, inequality. They're talking about it in the cigar lounges, in the champagne pavilions, in the cocaine-atoriums
inside. They're talking about it inside the same shared escorts.
(AUDIENCE LAUGHTER)
STEWART: The priority is helping the less fortunate. No one can actually challenge the master.
(CLIP OF RICHARD QUEST)
QUEST: Good morning from the top of a big red bus that is now making its way across Westminster Bridge, Alisyn.
ALISYN CAMEROTA, CNN ANCHOR AND CO-HOST ON CNN'S MORNING SHOW "NEW DAY": So Richard, what does this mean now for that referendum for the -
for Britain leaving the E.U.?
QUEST: Alisyn, I can do better than that. Have a look at that as the million-dollar shot! Look at that right up the River Thames, the London
Eye.
(END RICHARD QUEST CLIP)
(AUDIENCE LAUGHTER)
[16:50:06] STEWART: Camerota asked you a real question. You pointed to a (BLEEP) Ferris wheel! That's what a six-year-old does.
(END VIDEOCLIP)
QUEST: CNN's senior media correspondent Brian Stelter is outside Comedy Central's World News Headquarters in New York tonight.
Do we know - what can you tell us about this last show?
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: First of all, I salute you, Richard. You're able to laugh along with it. I know every time my
face was up on "The Daily Show," I had that moment of terror where you have no idea what they're going to say.
But, you know, Jon Stewart's the best at laughing at himself. I've learned to laugh at myself a little bit through Jon Stewart as well.
And tonight he will sign off on a special long 50-minute episode of "The Daily Show."
Right behind me people are lined up, they're actually starting to head inside because the taping will get underway in about an hour. But Jon
Stewart wants tonight to be kept a secret. He's trying to preserve some surprises.
I can tell you though we've seen Bruce Springsteen and his band walk in, we've also seen Stephen Colbert and John Oliver, a lot of former "Daily
Show" correspondents are here. So presumably they'll be showing up on tonight's (inaudible), so we'll see.
QUEST: Right. Now just very briefly - a long question for a brief answer - this was more -
STELTER: OK.
QUEST: -- than a comedy show, wasn't it? Over a decade and a half, sum up what this did for a younger generation in news.
STELTER: The cliche that people get their news from "The Daily Show" is not entirely true, but it is partly true. People - especially young
people - gained context from "The Daily Show," they gained perspective.
Yes, oftentimes left of center, progressive perspective, but Jon Stewart helped put the news in context for so many years. And that is the
impact he's had on the country and on the world.
QUEST: Brian, thank you very much. Brian Stelter, thank you. Now, corporate American frequently found itself skewered by Jon Stewart. Some
of his most delicious barbs came at the expense of a fast food chain in the United States called Arby's.
(BEGIN VIDEOCLIP)
STEWART: Why not challenge your stomach to a fight?
You think pain and grief are hard to digest.
It's like shock and awe for your bowels.
The meal that's a dare for your colon.
It's like if a stomach could get punched in the balls!
All right fine, Arby's.
(SONG "THANK YOU FOR BEING A FRIEND")
(END VIDEOCLIP)
QUEST: The brilliant part of that is it's Arby's own video put together and run as a commercial for Jon Stewart's departure. Joining me
now is the Arby's chief executive Paul Brown.
When I heard this story, Paul, I realized it takes real guts for a corporation with profits at risk - real confidence to be able to do
something like that.
PAUL BROWN, CEO, ARBY'S: Well you were just talking it about it earlier. You have to choose whether you're going to laugh at yourself or
be defensive.
And brands are no different than individuals. People like brands that are not defensive just as they like individuals that are not defensive.
And so we decided to be real about it and just play into it a bit.
QUEST: And that's what I - was there a debate between yourself and other senior staff and maybe even your ad agency - some of people who just
couldn't see that this was going to be a good idea and thought you'll be shooting yourself in the foot or kicking yourself somewhere painful?
BROWN: There wasn't really a lot of debate. I can say two years ago when a lot of this started happening, there was some question around how
we should react and there were people that would send me notes saying 'can't you do something about this?'
But the point is, it's a joke and you have to learn to take a joke. And after two years of being in this role and seeing what Jon has done for
the brand and how fun it's been, there really was no debate about doing this ad.
QUEST: You mention that. What has being skewered by America's most popular satirist - what has it done for your company?
BROWN: Well, what we tried to create with the Arby's brand is being authentic. And Arby's at its best has been when it's been a maverick out
there.
And so just allowing us to be real and getting back into the conversation again has been good for the brand. And it's tied very well to
the other things we're doing with the brand around social media and traditional marketing.
QUEST: Now let's talk about this social media idea because every company has to watch what's being said about them on Twitter, Instagram and
the like. I assume you have a war room - you have a group of people who respond.
For you, sir, how significant is it to stay on top of it?
BROWN: It's real important to stay on top of it. I think the important thing on social media is to not see it as some disconnected part
from the rest of your marketing team which a lot of brands sometimes make a mistake of doing. What we view is social media is as integrated and what
we do with the brand is any other part of the business.
And so we are constantly monitoring social media and when we see things that are going well, we amplify them. When we see things that are
having issues, we immediately respond to them in an operational way. It is as much a part of our business as any other element.
[16:55:10] QUEST: Well, sir, congratulations on your commercial and I'm sure you're pleased with the response that you've had today.
BROWN: Very pleased.
QUEST: Excellent. Shame he didn't send us any free products since you know Arby's on this studio floor. All right, we'll have a "Profitable
Moment" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." Where I've been one of those who've often said that the media - that all of us need to grow up when it
comes to criticizing those involved in the search for MH370. It's a difficult area, there are enormous amounts of complexities and frankly we
often to suggest incompetence when it's just one of those things.
But I have to say the events of the last few days have got even me puzzled. How can the Malaysian prime minister use the world "conclusively"
to describe the flaperon as being part of MH370 and yet the investigators in Paris, the prosecutor says nothing of the sort and even on this program,
Martin Dolan, the assistant - the commissioner - of Australia's ATSB also says he's not prepared to go that far.
And then you've got - is that debris, is it a seat cushion, is it aluminum from the plane? The Malaysian transport minister says it is what
needs verifying.
This is a shambles and it shouldn't be happening this way. There was plenty of time to get ready for these developments, there needed to be a
better coordinated method of getting the information out, and frankly when the families say that they are confused and they don't know what's
happening next, they've got every right to be angry.
And that's "Quest Means Business" for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, (RINGS BELL) you and I
will be here tomorrow when it's profitable.
END
