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Quest Means Business
Merkel Calls on Europe to Do More for Refugees; European Countries Address Refugee Crisis; EU to Propose Country-By-Country Quota System; German Government Welcoming Refugees; Migrants Could Become Part of German Workforce; Farmers Protest Plunging Food Prices; European Stocks Closer Higher; Chinese Central Bank Says Volatility Nearly Over. Aired 4-5p ET.
Aired September 07, 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] RICHARD QUEST, HOST: There's no trading on Wall Street, it's the Labor Day holiday here in the United States, but we have a full
hour together on Monday, it is the 7th of September.
And tonight, new arrivals and new opportunities. Angela Merkel says migrant workers will change German and its economy.
The farmers fight back in Brussels over the falling cost of milk.
And steady as she goes. China's central bank thinks the market volatility may be over.
I'm Richard Quest. We start a new week together, and I mean business.
Good evening. Tonight, Germany is vowing to bear the lion's share of Europe's refugee crisis, saying the addition of thousands of people will
actually help fill a hole in the German economy. Join me at the super screen and I'll show you how the day's developments have moved on in terms
of the European response to the migrant crisis and how Germany is going to turn this to its economic advantage over the longer run.
Now Chancellor Merkel is encouraging her European counterparts to do more. Germany has pledged $3.3 billion in aid -- more aid to fight the
crisis, and then is saying to the rest of Europe, do more to play -- do more to step up your game.
(BEGIN VIDEO CLIP)
ANGELA MERKEL, CHANCELLOR OF GERMANY (through translator): Germany is, of course, willing to accept more refugees, but all member states of
the EU should be accepting refugees so that they can find protection when they escape civil war and terrorism.
(END VIDEO CLIP)
QUEST: Now, later, the French president, Francois Hollande, unveiled his new measures, which will include France taking 24,000 more migrants and
will start reconnaissance flights over Syria this week. That could lead to airstrikes in the future and is widely regarded as dealing with some of the
root causes, not just the symptoms of what's followed on.
In the United Kingdom, David Cameron, the British prime minister, says the UK will accept 20,000 Syrian refugees over the next five years. Those
refugees will not be taken from the migrants who have already made the crossing, but instead will be chosen from those in the refugee camps that
are still in situ. Mr. Cameron says the UK is doing more than any other European country.
(BEGIN VIDEO CLIP)
DAVID CAMERON, PRIME MINISTER OF BRITAIN: To Mr. Speaker, we are proposing that Britain should resettle up to 20,000 Syrian refugees over
the rest of this parliament. In doing so, we'll continue to show the world that this country is a country of extraordinary compassion, always standing
up for our values and helping those in need.
So, Mr. Speaker, Britain will play its part alongside our other European partners. But because we're not part of -- this is important --
because we're not part of the EU's borderless Schengen agreement or its relocation initiative, Britain is able to decide its own approach.
(END VIDEO CLIP)
QUEST: The British prime minister, David Cameron, also getting a dig in to European issues and a reminder of course, it's down here from Hungary
up towards Austria down across Serbia and Romania, that is the main route through which currently they are -- the migrants are moving, Hungary to
Austria heading towards southern Germany and Munich.
The European Commission is planning to set new country-by-country quotas to help take in the refugees. It's called part of the effort of
finding a home for as many as 160,000 people seeing asylum.
Now, according to Reuters, the countries in red, which are Spain, France, Germany, and Poland and the Netherlands, they're going to be called
upon to do the most by taking so many refugees in the quotas, it will take the pressure off Hungary down here, Italy, Greece, and those countries that
have been receiving.
Those export -- those countries exempted from quotas, along with the UK, Ireland, and Denmark will also be some of those countries down at the
southern Mediterranean. The formula uses member states' size, economic strength, and history to take account, and the states can buy their way
out. Jean-Claude Juncker will unveil the plan on Wednesday.
Angela Merkel admits that letting so many migrants into the country will change the face of German society. Atika Shubert has more from
Munich.
(BEGIN VIDEOTAPE)
ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT (voice-over): They keep coming, thousands every day at the main train station in Munich, often
greeted by applauding locals or welcoming volunteers. It's no wonder that Germany is the preferred destination for so many refugees.
[16:05:09] But not everyone in Germany welcomes the newcomers. Early Monday morning, a fire burned down a shelter for 80 refugees. Five were
treated at hospital. It took 150 firefighters to put out the blaze, raising fears of yet another arson attack on immigrants.
In fact, as the number of refugees arriving climbs, so do the number of attacks. According to the Interior Ministry, more than 340 recorded
incidents so far this year from vandalism to arson.
On Monday morning, German chancellor Angela Merkel rallied the nation to tackle the refugee crisis with pragmatic compassion. "We will need the
voluntary support," she said. "We already know we need 10,000 volunteers to help. This crisis is going to change our country, but I think we are up
for the challenge," she said.
In her speech, Merkel outlined a plan to deal with the crisis: an additional $3 billion now set aside, bringing it to $6 billion allocated to
help house, feed, and find jobs for up to 800,000 refugee applicants, 150,000 temporary homes still needed to be built.
SHUBERT (on camera): As you can see, refugees already coming across here, and this is the kind of reception that they're -- that German
chancellor Angela Merkel says she wants to see more of.
(CROWD CLAPPING)
SHUBERT: You can hear the kind of warm welcome they're receiving. But Chancellor Merkel also said that those who are fleeing war and
persecution will be given refuge here. On the other hand, those who are deemed to come from safe and politically stable countries will be returned
home.
SHUBERT (voice-over): For now, that distinction is lost on the thousands arriving here every day. They're just relieved to have a safe
place for the night, for thinking about what happens after tomorrow.
Atika Shubert, CNN, Munich.
(END VIDEOTAPE)
QUEST: Now, as Germany works to quickly absorb an ambitious number of refugees, some say their economy could benefit greatly from such an
improvement in workforce. Germany has problems that a fresh wave of people ready to work might help solve.
They've got 490,000 job vacancies, nearly half a million reported in Germany last year. The unemployment rate in the country is some 4.6
percent, and that's way lower than the eurozone average. And Germany has an aging population, one of the highest ratios of elderly people to the
workforce, according to the World Bank.
Put all that together, and it's not surprising that many in Germany are now suggesting this new workforce arriving, this new migrant labor,
could be of great benefit to the Germany economic machine.
I spoke to Dr. Markus Kerber, chief exec and director general of the Federation of German Industries, the BDI. He told me with proper
investment, this massive influx of people could help solve labor issues in the German economy.
(BEGIN VIDEOTAPE)
MARKUS KERBER, CEO AND DIRECTOR GENERAL, FEDERATION OF GERMAN INDUSTRIES: We've facing two challenges, and we've actually been facing
them for a couple of years now. That is on the one hand the demographics, i.e. more and more people, thank God, getting older and older in a very
healthy state, but falling out of the workforce.
And at the same time, a certain shortage of skills and capabilities. And I think if we get it right, we can probably find solutions to tackle
both problems, the democratic one and the skills one.
QUEST: But at the same time, of course, there will be a challenge, and the first -- I mean, just to go through some of the practical
challenges, you've got to improve skills and professional qualification recognition, because you've got thousands of people arriving, well, you
want to know what they can do and how they can do it, and do they have proper qualifications.
And then you have on top of that the language barrier and the integration issue. How far can industry and business help with that?
KERBER: Well, if you look at today's decisions made by the federal government, it includes a fair chunk of money to be devoted to integration
causes and to language causes. And I think what industry and economy and the business side can add to that is the ample opportunity to use some of
these skills early on in the process of learning a language, of learning a society and its workings.
QUEST: How do you prevent the incoming workers from effectively becoming a cheap labor force. Marie Le Pen has accused -- of France has
accused Germany of opening doors to refugees for cheap labor.
[16:09:58] She says Germany probably thinks its population is more moribund and is probably seeking to lower wages and continue to recruit
what she describes pejoratively as "slaves" through mass immigration.
Now, obviously, I wouldn't expect you to accept that, but you can certainly see the risk that if you do have a large incoming workforce, it
can have a depressing effect on wages and conditions.
KERBER: Well, look, Richard, it doesn't surprise me at all that Madame Le Pen obviously doesn't know anything about the German economy,
because if she did, she would have known that cheap labor is not what we're looking for in Germany.
On the contrary, the economy is highly, highly dependent on relatively expensive, relatively crafted industrial goods. And for that, we need
mathematicians, we need people who are akin with natural sciences and things like that.
And that is the gist of our economy, of our industry. You're not buying a German car, you're not buying a German kitchen appliance --
QUEST: Right.
KERBER: -- you're not buying a German machine tool equipment because it's been made by cheap labor. On the contrary. And therefore, it's a
mixture of highly-skilled labors and highly-skilled engineers and scientists that is at the backbone of our economy.
And if we can strengthen that with people coming from Syria, coming from African countries and other parts of the world, I think there is only
upside.
QUEST: Right. But you will -- you can well see that at the moment, the numbers coming in, you really don't know what you're getting. And
there will be, potentially, a large rump of number of people who do not have the skills which are suitable to the German economy. And then I
wonder what's the responsibility of state and industry to prevent a devalued workforce?
KERBER: I mean, that's a fair observation. And that's why I said a little bit earlier, for the next maybe two to three years, you have a
front-up investment by both the public finances and the private side to invest and to train and to integrate. And only then, after a period of
training and integrating people will the benefits come off and you can reap what you've been invested in.
But I think you're absolutely right. If this was not being undertaken, then we would face a problem. But as I said before, both Mrs.
Merkel and the vice chancellor, Sigmar Gabriel, have very determinedly said that they are willing to come up with the necessary investments, the up-
front investment into the people that are arriving.
And of course into people that have already been living in Germany to make up for the demographic and for the skills gap. But it's quite clear,
without that investment, without that effort, without that attempt for the next two to three years, the danger that you've just described may become a
reality. So all the more reason to do these investments, I think.
(END VIDEOTAPE)
QUEST: Thousands of farmers have been taking to the streets in Belgium. They were taking there in their tractors with much noise and
mess. EU ministers are holding an emergency meeting, and it's all about the price of milk.
(COMMERCIAL BREAK)
[16:14:52] QUEST: Belgian police have unleashed water cannons on thousands of European farmers who are protesting against plunging food
prices. The demonstrators blocked streets with at least a thousand tractors. They threw eggs, fireworks, and hay.
The protest was timed to coincide with an emergency meeting of EU agriculture ministers. The European Commission has offered more than a
half a billion dollars -- $550 million more -- in aid.
Now, much of the trouble all boils down to this: because today, in Europe, milk is now cheaper than a bottle of water. A liter of water costs
around $1.50, milk is just $1.
It's been a tough year for the entire dairy sector, whether it's butter or cheese or even powder milk. Butter prices are down some 13
percent. Cheese, well, that's off more than 19 percent. And when you factor in things like skim milk and powdered milk, you're off about a
third.
The factors causing the drop in these essential dairy prices, well, the first, of course, is the Russian embargo on Western products. Then
you've got slowing demand from China, and you factor overproduction into the equation, and you start to see why this is an economic mess.
Sylvia Daberitz is the director of the European Milk Board, an organization that represents dairy farmers. So, look, the problem -- well,
in a nutshell, how have Europe's farmers got themselves into such a terrible state when it comes to prices?
SYLVIA DABERITZ, DIRECTOR, EUROPEAN MILK BOARD: Good evening. Well, the thing is that the farmers themselves, they are in a system that is led
by the European Union, and this system, which is going to -- further to liberalize the markets, has brought them to this situation.
Because the problem is that overproduction is actually wanted by the system, so farmers are milking more because they can't do it any other way.
And this is now the result that there is a really big decrease of the dairy prices.
QUEST: But you see, the -- you see, I'm old enough to remember the milk lakes and the wine lakes and all the other things of the common
agricultural policy. Now, everybody said the cap was a disgrace and was inefficient, and this new system was supposed to work better. So, why
isn't it working better?
DABERITZ: Well, yes. It's not everybody who said it will work better, because we from the European Milk Board, we were already -- we knew
already when it was put into place it would be a big problem.
Because the thing is, with no let's say adaption of the volume to the demand, you will have this overproduction. And we knew it before that it
would happen, and we were warning the --
(CROSSTALK)
QUEST: Right, so --
DABERITZ: -- the European Union and were saying they have to have a good net to do so, and they didn't. So, this is what we actually go back
to, what you just were talking about, to the milk lakes and the butter mountains --
QUEST: All right, but --
DABERITZ: -- which is a very big problem.
QUEST: But then, are we talking here about -- there's a certain amount of half a billion aid. Well, aid is only ever a short-term measure.
Are we talking about long-term price support for farmers, otherwise they go out of business?
DABERITZ: Yes. The thing is, there is long-term measures, I would call them, is necessary. This 500 million is a number, but it's always
important, how do you use this money? And the way they want to use it now, which was announced by the ministers, is not the right way.
We say or we think it's important that you have some kind of crisis system. A crisis system that in times of overproduction, like this, which
is really a hard time now, that you can, for example, with the help of voluntary production cuts, which means that you're paying some bonus to
farmers who voluntarily produce less --
(CROSSTALK)
QUEST: Right, but this --
DABERITZ: -- for this to have a --
QUEST: -- this does mean --
DABERITZ: -- you can adapt much better --
QUEST: This does mean, finally, that the European --
DABERITZ: -- supply and demand.
QUEST: -- community is going to have to put more money into agriculture, and that's never popular.
DABERITZ: No, it's not about more money. It is how you use the money. The thing is, you can have a lot of money and just put it in the
wrong measurements, which is going to happen, which is happening right now.
But if you use the money for a crisis management system, it means you're not giving people money in addition to these low prices, you take
care that the market itself is producing these prices. And this you can do via an intelligent crisis management system.
And this is what we're asking for. We're not asking for more subsidies or things like that. Because this is not helping. We know that.
[16:19:58] And we also said this today at our protest, what we want is a crisis management system where you -- for example, give money --
QUEST: Right.
DABERITZ: -- that people are producing less, and then the price is picking up. And this is what we want. The farmers want to live from the
price, not from the subsidies.
QUEST: Thank you for joining us and talking to us this evening, putting the position. We'll talk more about it in the future, thank you.
QUEST MEANS BUSINESS. We start a new week together. European stocks started the week, and there were gains.
(RINGS BELL)
QUEST: That's worth it. The FTSE was pushed higher by Glencore, which up 7 percent after he company announced a cost-cutting plan. All the
major bourses were open. And remember -- open and up. As you can see and remember, Wall Street was closed for the Labor Day holiday.
There's defiance in China. The central bank governor says the worst of the market volatility is over. We will ask how can he know this?
Unless he's actually causing it. And whether or not it's justified, after the break. QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: Market volatility is nearly over, so says the governor of China's central bank. You may well ask --
(COUGHS)
QUEST: -- excuse me -- how does he know that? Well, it does not appear to be backed by several new economic indicators. Look at the red
arrows down.
First of all, we've got falling growth. Last year's GDP has been revised from 7.4 to 7.3 percent. Not a big change, but any sign of a
slowdown sets off alarm bells, and there will be questions, of course, whether you actually believe the 7.3 is a valid number.
So, you've got falling growth and you've got falling reserves. The foreign currency coffers are emptying at a record pace. Hardly surprising,
and the reserves have dropped by nearly $94 billion in August. That's when they were intervening to prop up the currency.
There's also been the expenditure in the markets, and you've got a total issue of what they've been doing with -- they've actually been
selling, the Chinese have been selling US Treasury debt out of their stocks.
And finally, falling markets, which of course, you'll be aware, the Shanghai Composite closed down some 2.5 percent on Monday. If you look at
the market -- let's just look at a six- month market, and you can see.
It's basically lost some 40 percent of its value since June, and even if we take a one-year limit now, you start -- all right, over the 12-month,
not year-to-date, over a 12-month limit, you're still up maybe marginally just about. But it's a close-run thing. But that is not a pretty sight.
Stephanie Flanders joins us now from London, who is the global market strategist at JPMorgan Asset Management. Good evening to you. Good to see
you, as always.
STEPHANIE FLANDERS, GLOBAL MARKET STRATEGIST, JPMORGAN ASSET MANAGEMENT: Evening, Richard.
QUEST: All right. So, do you believe the governor when he says the market volatility is over?
FLANDERS: You know, I'll believe that they're a bit more serious about letting market forces operate in things like the stock market when
they stop talking about when it's going to go up and when it's going to go down and when it's going to be stable.
That's one of the lessons, Richard, that you get from being a finance minister or quite quickly from being a central bank governor. You don't
want to tie yourself to promises about what direction the market's going to go if you are actually serious about a market economy.
[16:25:02] I think that obviously, what people have been looking for in the China situation is not so much what happens to that stock market,
which actually affects quite a small bit of the economy, and it's always been very speculative. But what we're seeing going on in the global -- in
the real economy, which you were just talking about.
And also, what we're seeing in terms of how policymakers are responding to the difficult challenges they face. Because we've always
thought they were quite good at dealing with these things, and they haven't really been looking so great over the last few weeks.
QUEST: And yet, the sort of dislocation -- collywobbles, whatever you want to call it, that we're seeing in the global economy at the moment. Is
it your view that it's justified on the back of what we're seeing in China?
FLANDERS: I think you can't draw a direct line from any -- realistically from what's going on in China any likely economic effect that
that would have for the rest of the world to any sort of dire predictions about the global recovery.
I don't think we're in a situation where even quite challenging times for China -- and I suspect it could get more challenging -- I don't think
that's enough to send us into a global recession.
But I think it does tell us that the developed world, for the moment, is kind of on its own. It's not going to get any extra support from the
growth coming from emerging markets.
And in fact, it's probably going to find there's a bit of a headwind from that, but actually the whole emerging market world in large part,
thanks to the weakness in China, is going to be weaker -- even weaker than we thought.
QUEST: And factoring in that, the question of the moment -- because there is only one -- September. Are you a September or a December woman?
FLANDERS: You know, I'm one of those people who thinks they haven't made up their mind yet, for one thing --
(LAUGHTER)
FLANDERS: -- when you think about the US central bank. But you know what? You can never underestimate the parochialism, if you like, of the US
central bank. They're always very clear their job is to think about the US.
And I actually think it's better for the rest of the world I they just focus on the US, because it's hard enough to get that right. If they start
to make different calculations about what impact it might have on this or that.
Of course they have to think about indirect effects, if they had -- if there were big issues in the emerging market world, what effect would that
have in the US? But their focus is on the US.
And you know what? The US doesn't really look like an economy that needs rock-bottom interest rates at the moment. You might not think it's a
great time to raise rates, but it doesn't really feel like a time where it needs that kind of emergency support.
QUEST: And finally, when we factor it all in, what will it take -- this is the billion-dollar question -- what will it take to soothe the
nerves of the market? We don't believe the 7.3 percent China number. There are worries about September. Emerging markets -- we haven't quite
factored in just the long -- medium-term effect on this. So, what's the soothing balm for this volatility, if there is one?
FLANDERS: I think if you continue to get pretty decent growth news out of the US and Europe, which is what you're seeing. In fact, some very
good figures out of the UK and elsewhere. And if you get some reassurance that there is a bottom to some of this bad news coming out of emerging
markets.
I think the real risk, as always, is not the direct economic impact, it's the indirect impact and the psychological impact of just not knowing
how bad this could get. We'd like to see that we're reaching some kind of turning point there. I'm not sure we're quite there.
QUEST: Stephanie, lovely to see you. Thank you so much. Stephanie Flanders joining us from London.
FLANDERS: Thanks.
QUEST: The situation on the Hungarian-Serbian border is intensifying.
(BEGIN VIDEO CLIP)
(CROWDS SHOUTING)
(END VIDEO CLIP)
QUEST: Now the Hungarian police are resorting to pepper spray on increasingly desperate migrants.
[16:29:02] (COMMERCIAL BREAK)
[16:10:20] RICHARD QUEST, CNN INTERNATIONAL ANCHOR AND REPORTER HOST OF "QUEST MEANS BUSINESS" SHOW: Hello, I'm Richard Quest. There's more
"Quest Means Business" in just a moment when we're going to take you to the latest flashpoint in Europe's migrant crisis -- the border between Hungary
and Serbia.
And our tour of Israeli's technology boom begins and it starts with a driverless car.
Before all of that, this is CNN and on this network the news always comes first.
The German Chancellor Angela Merkel's pledging an additional $3.3 billion to help with the refugee crisis storming Europe's borders. Mrs.
Merkel's also calling on her European counterparts to do more. More than 17,000 asylum-seekers arrived in Munich this week alone.
The E.U.'s foreign policy chief says the migrant crisis is likely to continue for years. Federica Mogherini has told CNN that while leaders
need to act rationally, they may have been inspired to act by recent images of desperation.
(BEGIN VIDEOCLIP)
FEDERICA MOGHERINI, E.U. FOREIGN AFFAIRS CHIEF: Sometimes even political leaders need, let's say, an emotional push which is sad in my
opinion.
But if we do not manage to act united and fast in front of these tragedies - in front of these human tragedies - then what would move more
courageous decisions if not these? The point is that people die, children die, women die at sea and at land even when we don't see the pictures.
We should remember that this is a tragedy that is going on now for years, it's going to stay probably for the next coming months and years and
we better face it rationally.
(END VIDEOCLIP)
QUEST: The Prime Minister David Cameron says two British Nationals have been killed in a drone strike in Syria. While the U.K.'s hit ISIS
targets in Iraq, this is the first time it has struck in Syria. Mr. Cameron told Parliament that the two were killed by an RAF drone near the
ISIS-controlled city of Raqqa.
(BEGIN VIDEOCLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: Today I can inform the House that in an act of self-defense and after meticulous planning, Reyaad Khan
was killed in a precision airstrike carried out on the 21st of August by an RAF remotely-piloted aircraft while he was traveling in a vehicle in the
area of Raqqa in Syria.
In addition to Reyaad Khan who was the target of the strike, two ISIL associates were also killed, one of whom, Ruhul Amin, has been identified
as a U.K.. National. They were ISIL fighters and I can confirm there were no civilian casualties.
(END VIDEOCLIP)
QUEST: Thai officials say one of the suspects in last month's bombing at a Hindu shrine has confessed to possessing banned explosives.
Investigators also announced two more arrest warrants in connection with the bombing which brings the total number of warrants issued to 11.
The Hungarian defense minister has resigned because a fence the country is building on its border with Serbia was not ready in time.
Hungary's been trying to stop the influx of people fleeing - mostly Syria, Iraq and Afghanistan. Tensions are rising on the border between
Hungary and Serbia. On Monday the Hungarian police used pepper spray. CNN's Arwa Damon reports from the border.
(BEGIN VIDEOCLIP)
(YELLING - "MOVE BACK!")
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: This is the reaction of a desperate people who just want to keep going, trying to force
their way through the police squad but fail.
[16:35:04] They simply can't take the conditions here anymore. This is what awaits them when they cross into Hungary. It's meant to be a
holding site, but they end up waiting for days for the buses to arrive amid the filth with little to no shelter and just a small local non-profit to
help.
In the tiny medical tent a little boy who collapsed - exhaustion and dehydration we are told.
Most are refugees from the wars in Syria, Iraq and Afghanistan. They fled to save themselves and their children. Fuad Abdul Aziz (ph) saw ISIS
take over his city, his children exposed to the rotting corpses of their victims in the main squares.
Still, the boys are homesick and confused. Along the road he keeps telling his daddy, "I want to go home." All Fuad (ph) can respond is, "God
is good. The day will come when we will go back home." His only memento from Syria? Tightly-wrapped in plastic to protect it during the sea
crossing, his barber kit, a trade he could no longer practice in Syria under ISIS.
FUAD ABDUL AZIZ (ph), REFUGEE, INTERPRETED BY DAMON: "It was forbidden. You can't cut beards and your hair has to be one length," he
tells us.
Home as they knew it is gone.
(CHILD CRIES)
DAMON: It's what drives most to make the journey.
Female, INTERPRETED BY DAMON: "I am an old woman. I ran from such brutality!" this woman shouts. "And they put me here in the sun? I lost
my home, my everything. All I have left are my sons."
DAMON: The injustice of all they have been through boiling over. They are both let on but the bottleneck of humanity intensifies as others
continue to arrive. Arwa Damon, CNN on the Hungary-Serbia border.
(END VIDEOCLIP)
QUEST: Tragic scenes seem set to continue as Federica Mogherini was saying earlier. The European Union as a whole has 586,000 pending
applications for asylum. It is the most recent numbers in June and it doesn't count any applications since then.
Join me at the Super Screen and you'll see how the burden from country to country varies greatly. Not surprisingly, you're well aware that the
majority of pending applications - there it is - it's in Germany with 306,000 so far.
Hungary over here has 24,000 applications. And keep in mind in 2014 Hungary only accepted 10 percent of the applications that were made. The
rest rejected and we presume people were thereby deported.
The U.K. 30-odd thousand in total. And of course you get these very high numbers down in the south which of course Greece and Italy because
that's the main route by which people are coming across.
Factor all this in together, and while Europe plans to do more, the wealthy Gulf countries are coming under sharp criticism. Look at the
number of refugees seeking asylum there. Kuwait none, Saudi Arabia none, Oman, UAE, Qatar and Bahrain none.
Amnesty International say they have offered no resettlement places to Syrian refugees at all. And Amnesty describes their inaction as shocking.
The question of course is why are these places not taking refugees? Becky Anderson reports from Abu Dhabi.
BECKY ANDERSON, CNN HOST, "CONNECT THE WORLD": Exhausted and drained, they're determined to make it. Most are marching towards Germany where
they are being welcomed with open arms.
The majority are Syrian and have traveled thousands of miles in search of a better life, often paying the ultimate price.
And now questions being raised about why these people fleeing war couldn't find suitable refuge closer to home - namely in rich Arab Gulf
countries that could afford to house them.
The uproar has gained momentum on social media -- images like these were widely circulated. But hashtags such as
#WelcomingSyriasRefugeesIsAGulfDuty, calling on leaders to do more. And the U.N. has voiced its concerns.
(BEGIN VIDEOCLIP)
ANTONIO GUTERRES, U.N. HIGH COMMISSIONER FOR REFUGEES: So that is why we have been asking that not only the borders of the region are open, but
that all other borders especially in developed worlds are also open.
And this is true in Europe, it is true in the Gulf, it's true everywhere where countries have the capacity to receive some Syrian and to
integrate them in their societies.
(END VIDEOCLIP)
ANDERSON: There are more than 4 million Syrian refugees in the region. But according to Amnesty International, six Gulf countries haven't
offered any resettlement locations to the refugees.
[16:40:01] They've been giving money though and lots of it. Since the war broke out, Kuwait alone has donated almost $1 billion to the U.N. to
help Syrians, making it the fifth largest donor worldwide.
ABDULKHALEQ ABDULLA, RETIRED PROFESSOR, UNIVERSITY OF UAE: There is a lot that the Arab Gulf States have done that has not been recognized by the
international community. I don't think anybody, any country, any states have helped the Syrian refugee more so than the Arab Gulf States.
ANDERSON: Plus Gulf countries don't recognize refugees as they are not signatories to the 1951 Refugee Convention.
So anyone who wants to enter has to meet standard visa requirements which tens of thousands of Syrians do. And there are security concerns
about hosting large populations from Arab States.
ABDULLA: Having refugees also feeds into ISIS appeal and it feeds into the violences in the region which is already, you know, the most
violent region on earth.
So all in all, anything that goes in the neighborhood impacts the security and the stability of the Arab Gulf States who are by far the most
stable and the most secure of all our countries.
ANDERSON: We've spoken to officials here in the UAE who say they have given almost a half a billion dollars, citing their efforts to help Syrians
in Jordan and in Iraq as examples.
For the moment it seems the money will continue. The doors are staying closed. Becky Anderson, CNN Abu Dhabi.
(END VIDEOCLIP)
QUEST: And "Quest Means Business" continues in a moment.
(COMMERCIAL BREAK)
QUEST: This Monday, today it is considered the last day of summer in the United States. No more wearing white shoes and the Hamptons immerse
into the peak season for theme parks like Walt Disney World.
Few people know the parks as well as Julie Neal. She's the so-called the "Disney insider."
She's an expert of every little detail at Disney including where to find the so-called hidden Mickeys. I promise you there are hidden Mickeys
just about everywhere.
(BEGIN VIDEOCLIP)
JULIE NEAL, AUTHOR, "THE COMPLETE WALT DISNEY WORLD 2015": I've been to all of Disney about almost 2,500 times, so a lot. Yes, it does seem
like an obsession but I was writing books. So the more I researched and the more I learned about the place, the more interesting it became.
I mean, there are backstories to these attractions that are never told and you have to piece them out by going through the cue and looking for
clues and asking cast members. Because Disney's not going to tell you.
[16:45:02] QUEST: For Disney geeks it's the little touches that make the Disney difference.
NEAL: Now I'm going to show you where a hidden Mickey is.
QUEST: What's a hidden Mickey?
NEAL: It's a camouflaged silhouette of Mickey Mouse. There are hundreds of them in the park.
QUEST: This is a favorite game of Disney obsessives. How do we find a hidden Mickey?
NEAL: Well, there's one right over here. The drain is the head and then there are two elephant tracks that make the ears.
QUEST: Oh, come on.
NEAL: Now you can see it.
QUEST: You're making it up.
NEAL: No, it's very obviously there. There's one over here too. This one's smaller.
QUEST: There's the ears and there's the head.
NEAL: Yes, that's it.
QUEST: To get the full experience, you really do need the experts. Top five things to do in Disney. Number 1.
NEAL: Number 1,reserve your FastPasses online ahead of time - way ahead of time -
QUEST: Now number 2.
NEAL: Number 2, after you have your FastPasses done do your dining reservations because they're going to book up and you don't know it, and if
you want to sit down and eat, you better have a reservation.
QUEST: Number 3.
NEAL: Number 3, -- this is the most important one. Get to the park early, at least half an hour before the park opens. (AUDIO GAP) those
first two hours at Disney are golden (ph).
QUEST: Number 4.
NEAL: Don't think you're going to do the whole park in one day. You're not going to. So besides your FastPass attractions that you've
already picked out, fill the rest of your day with attractions and experiences that don't have any waits at all.
QUEST: Number 5.
NEAL: Number 5 is this - don't overload on the four theme parks. You can have a great week at Disney and not step one foot in a theme park.
QUEST: Brilliant.
(END VIDEOCLIP)
QUEST: Hidden Mickeys galore. (RINGS BELL). It's there somewhere. Yes, it's not that hidden - there it is. Moon with the clouds, our very
own hidden Mickey.
There is one place you won't find a hidden Mickey and that's maybe - well maybe not that sort of hidden Mickey. Let's keep going (RINGS BELL).
A themes park such as Stonehenge is still one of the U.K.'s most famous and visited attractions.
And like Disney, Stonehenge itself may be expanding. And why? Because of a new discover less than three kilometers away. CNN's Erin
McLaughlin has been to see the rocks.
(BEGIN VIDEOCLIP)
ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT BASED IN LONDON: It takes your breath away. People from all over travel to see Stonehenge.
Its construction and its purpose remain a mystery thousands of years old.
And now we're learning that just two miles away from here, a discovery so extraordinary, experts are calling it `archeology on steroids.'
Scientists used ground-penetrating radar technology to make the discovery. They found at least 40 stone slabs and spaces for at least 160
more.
Incredible to be here knowing that beneath my feet are the remnants of an ancient monument 15 times the size of Stonehenge.
And National Trust's Nick Snashall says the new find rewrites the history of the area.
NICK SNASHALL, THE NATIONAL TRUST: This place seems to have fawned to have had three different functions. It started life as a settlement, once
the settlement went out of use and they stopped building Stonehenge, then it became a place that was revered. It became a place of ritual. So
that's when they seemed to bring in the stones.
But then very shortly thereafter-wards, somebody decides that the ritual needs to be done in a different way - that the ceremony and the site
are not doing it quite right. So they change it and they bury the lot.
MCLAUGHLIN: And what does this tell us?
SNASHALL: I think what it tells us is that the story of the Stonehenge landscape is much more complicated than we'd ever thought it
was.
MCLAUGHLIN: So the mystery of Stonehenge deepens.
SNASHALL: Always.
MCLAUGHLIN: Erin McLaughlin, CNN Durrington Walls.
(END VIDEOCLIP)
QUEST: Now from Disney to Stonehenge to our look at how one Israeli company is revving up with a driverless car.
(COMMERCIAL BREAK)
[16:50:51] QUEST: Microsoft is set to buy the Israeli cybersecurity startup called Adallom and the deal could be announced as soon as next week
according to CNBC.
The likely acquisition is one area in the tech sector where Israeli companies are powering innovation often relatively under the radar. Samuel
Burke has been to Israel to look at the innovation in the Israeli economy. This week he has a series (inaudible) Startup-Nation's most influential
tech companies.
When we look at the tech companies in Israel, Start-Up Nation isn't new, tech development is known, but how are they amending it?
SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: Well it's really gone from the Start-Up Nation to the Scale-Up Nation.
But what's most fascinating to me is that oftentimes (AUDIO GAP) these Israeli companies they don't have the big, sexy brand names that consumers
recognize.
But it is Israeli innovation that is oftentimes the hidden power in so many tech companies - they're the ones fueling it.
For our first report we looked at Mobileye, and they're the company behind the technology for self-driving cars about to hit our roads.
(BEGIN VIDEOCLIP)
BURKE: CNN's put me in the passenger seat of a driverless car. Once they even let me go behind the wheel but only in a parking lot.
Now for the first time, I actually allowed out on the open road in the driver's seat. Or is that the driverless seat? Oh, Lord, that's a steep
tow we're going down.
Car manufacturers are racing to the finish line hoping to be first with a fully autonomous car on the road. Even though they're in close
competition, Tesla, Volvo, GM, Audi, BMW and eight other car companies are all using the technology designed by Israeli company Mobileye.
From a tiny startup to the biggest IPO in Israeli history, Mobileye rose to prominence with a dashboard camera for everyday cars to alert
drivers to potential collisions.
Now they're rebooting their systems to allow the driver to take their hands off the steering wheel.
So tell me what's in this car right now that allows me to do this interview with you? I'm behind the wheel and I have my hands up as you can
see. So what's actually here that allows that?
AMMON SHASHUA, CO-FOUNDER AND CHAIRMAN, MOBILEYE: So it's all powered by a front-facing camera -
BURKE: Yes.
SHASHUA: -- in a development system and in production though it would be multiple cameras to get 360 degrees. And what you see here in the
monitor is what the processing chip picks up from the visual field. It knows about other cars, it knows about people.
BURKE: Mobileye says there are two key ingredients to the secret sauce of their company's success. First their algorithms.
Dozens of teams in the company's Jerusalem headquarters obsess over these algorithms so computer cameras can recognize the difference between a
green and a red light or a bicycle darting in front of the car.
The other ingredient?
SHASHUA: All the value of the company is in this chip. It has ten times the computing power of any chip that you can buy on the market.
BURKE: When we're on the freeway, who's safer -- me or your system right now?
SHASHUA: The robotic system will be better than a human driver. The reason for this kind of technology at the end of the day is not to make
driving more fun, it is to make driving more safe.
BURKE: I'm keeping my hand near the steering wheel just in case.
(END VIDEOCLIP)
QUEST: He's on a real road?
BURKE: That was a real road - between Tel Aviv and Jerusalem. And boy was it scary at first. But once we got going, I really felt for the
first time - you know I've almost crashed in one of these cars before - not that you saw in this report - and this was first when I sat and I thought,
"Oh, I could check my iPhone on the way to work and I could actually do this."
QUEST: Tell me why this is uniquely Israeli in the way it's being done?
BURKE: It's uniquely Israeli because this company is kind of doing this on the down-low. It's a big IPO - many people know it in Israel. But
they're slowly going out. They don't need the whole world to know their name but they want the car companies to know their name and they're all
coming to them and they're using these algorithms.
The only thing that separates a self-driving car from a normal car is these cameras and the chips.
[16:55:02] QUEST: And over the course of this week, what will we learn about this Israeli tech sector from your series?
BURKE: Well we're going to see how more of these Israeli tech companies are trying to latch on to other technology, change the
underbelly, we're also going to look at how other minorities in Israel are faring the tech scene - Arabs, Israelis, Christians and Muslims - how
they've been excluded and how they're trying to become a part.
QUEST: So the "Israel Powering Innovation" - it's all this week. Thank you for that. Samuel Burke joining us.
No trading on Wall Street. It was of course - is of course - the Labor Day holiday. But there will be a "Profitable Moment" after the
break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." Whenever the issue of immigration is mentioned, people often forget that of course the advanced
developed economies do need large amounts of immigration just to help economies grow, and in many cases to do so many of the jobs within it.
And it's interesting to note that almost immediately in Germany people are already starting to realize the tremendous benefit to the economy of
the migrants arriving.
Now of course the circumstances are appalling, the conditions are dreadful and the fact they've had to leave their own homes is deplorable.
But in this case Germany is basically saying hang on, we can use this to our advantage as well. This could be a version of win-win.
With proper training, proper investment, proper language skills, proper qualifications, these people can make a real contribution to the
Germany economy.
How refreshing that somebody is looking at this dreadful situation and actually analyzing it and saying it may be a good thing to make the best of
a very bad, nasty situation.
And that's "Quest Means Business" for tonight. I'm Richard Quest in New York. Whatever you're up in the hours ahead, (RINGS BELL) I hope it's
profitable. We'll do it all again tomorrow.
END
