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Quest Means Business
Obama and Castro Meet at United Nations; Cuba Calls for End to US Embargo; Obama Predicts ISIS Will Fail; Poroshenko Criticizes Putin's Terrorism Claims; Climate Change Major Issue at UN General Assembly; Volkswagen to Refit 11 Million Cars; Tesla Launches Model X SUV; Branson Calls VW Scandal Wake-Up Call; World Leaders Call for Climate Action; Dow Ends Higher; Carl Icahn Warns Dangerous Times Ahead
Aired September 29, 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 prime minister of the Netherlands, Mark Rutte, is ringing the closing bell at the New York Stock Exchange. The Dow
is up 50 points, it really has been an up and down sort of day. Come on, Mr. Prime Minister, let's see what sort of hammer you are.
(GAVEL POUNDS)
QUEST: My word! A firm prime ministerial hammer on Tuesday, September the 29th.
Volkswagen says, "We'll fix it." That fix will come with trade-offs for consumers.
Richard Branson tonight tells me the Volkswagen scandal may be a good thing for the auto industry.
And bringing Corbynomics to life. We're going to hear from one of the key figures tasked with making a left-wing turn.
I'm Richard Quest. I mean business.
Good evening. We begin tonight with a meeting that would have been almost unthinkable but a year ago. President Barack Obama and the Cuban
leader, Raul Castro, met just hours ago at the United Nations. One historic scene in a packed day at the UN. Our correspondent Richard Roth
is there and joins us now.
So, the two men have met. We know deals have been done. But -- Raul Castro, when you and I were on there yesterday, he left no room for doubt
about what he wants from President Obama.
RICHARD ROTH, CNN SENIOR UNITED NATIONS CORRESPONDENT: Yes, but each side seems to be moving slowly down that path, and as you mentioned, it was
the closest the world came to nuclear war, 1962, Russian missiles in Cuba, aimed at the United States. First time the US leader, the Cuban leader
meeting at the UN, now, since then, and certainly since inside the United States' borders.
The Cuban foreign minister, who was at that meeting, reminding journalists that the blockade by the United States seems to be the
remaining big stumbling block.
(BEGIN VIDEO CLIP)
BRUNO EDUARDO RODRIGUEZ PARRILLA, CUBAN FOREIGN MINISTER: The Cuban president ratified Cuba's willingness to work in order to build a new type
of relation between Cuba and the United States based on respect and sovereign equality. The blockade still persists. The pace of the process
towards normalization will depend on the lifting of the blockade.
(END VIDEO CLIP)
ROTH: A White House spokesman in effect saying President Obama was pleased with the meeting and that there seems to be steps that will be
taken that the US will try to do. Richard, October 27th the UN General Assembly votes on that embargo. It's a non-binding vote, though. The US
may abstain for the first time.
QUEST: They do that, of course, that is, once again, an extraordinary development. Richard, the -- at the UN, they have had to deal with, or at
least discuss, the ever-rising threat from ISIS. Now, here we have a situation where nobody's in favor, but nobody really knows what to do. So,
how do they square that circle?
ROTH: I know. They tried to take public steps to increase momentum and to show that progress is being made. President Obama, the US chairing
a meeting of countries lined up against ISIS. They're pleased they got more members aboard. Afterwards, the White House spokesperson saying they
believe progress was made also in this area, too.
But there really is no agreement on any new big-time plans. Afterwards -- well, at the meeting, President Obama said he thought ISIS,
which he once called a JV team, could be defeated.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Like terrorists and tyrants throughout history, ISIL will eventually lose because it has
nothing to offer but suffering and death. And when you look at the reports of those who are laboring under their control, it is a stark and brutal
life that does not appeal to people over the long term.
(END VIDEO CLIP)
ROTH: Of course, Syria, a hotbed of ISIS activity, a focus of the Putin-Obama talks yesterday evening, the White House believes that
President Putin is edging towards recognizing there needs to be a political transition. That may be just talk, that we've heard President Putin
solidly behind President Assad, the ruler of Syria. Richard?
QUEST: You talk about -- President Putin and when he addressed them, well, of course, the issue of Ukraine, Crimea, and the sanctions, which
Putin yesterday -- we're looking at a picture there of President Poroshenko, who addressed the United Nations.
But this issue of Ukraine, Crimea, and the relationship with Russia, the ongoing war between the two, still bedevils and does not appear to have
a solution.
[16:05:04] ROTH: Ukraine the second topic in the 95-minute session between the US and Russian presidents, and this is the Ukraine president's
second time at the General Assembly already, pleading for assistance and warning about Russia since the incursion into Crimea. The Ukraine
president telling the General Assembly that you can't trust Russia, which is reckless.
(BEGIN VIDEO CLIP)
PETRO POROSHENKO, PRESIDENT OF UKRAINE: Over the last few days, we have had a conciliatory statement from the Russian side in which in
particular it called for the establishment of the anti-terrorist coalition over the fire danger to flee with the terrorists. Cool story, but really,
hardly to believe.
(APPLAUSE)
POROSHENKO: How can you urge an anti-terrorist coalition if you inspire terrorism right in front of your own door?
(END VIDEO CLIP)
ROTH: And there was some US officials who believe that the Russian troops being put on the ground in Syria helps divert the Russian people
from looking at what's happening in Ukraine and the fall of their own currency, and you know more about that than I do, Richard.
QUEST: Right. Well, in a sentence, Richard, in a sentence, when the other side chooses to absence itself, leave the chairs empty, like they did
there with the Russian Federation, does anybody get miffed about it, or does everybody know how that game's played?
ROTH: Nobody -- I agree, they know the game. I think they look at it almost as a badge of honor that they weren't there. We've seen that
whether it's Israel and the Arab countries and other disputes, Richard.
QUEST: Richard Roth at the United Nations. Good work, sir.
Now, the issue of climate change is high on the agenda at the United Nations. My next guest has the focus very firmly on that 70 percent of the
planet that is covered by the oceans.
HERALDO MUNOZ, CHILEAN FOREIGN MINISTER: They are.
QUEST: Good to see you, sir.
MUNOZ: Good to see you.
QUEST: Chile's foreign minister is Heraldo Munoz. He joins me now. The oceans and that part -- oceans now, oceans here, the latest moves that
are being taken. What do you want from these sustainable goals, the sustainable development goals?
MUNOZ: One of the goals is the protection of the oceans, because they are absolutely linked to climate change, and they are like a savings
account to the extent that we protect the ocean. But we face three major threats: illegal fishing. Actually, because the consumption of fish has
increased from about 10 kilos per person per capita in 1960 to 20 kilos now. So, that's number one.
Number two, pollution of the ocean by plastics. And third, acidification of the ocean. So, in order to confront some of the dangers
that we have, particularly linked to climate change, preserving the oceans in a sustainable way is essentially a fundamental.
QUEST: OK, so, the ocean is actually -- sustainable ocean development, or at least maintaining it, is actually one of the sustainable
-- the SDGs --
MUNOZ: Exactly.
QUEST: -- Sustainable Development Goals.
MUNOZ: Number 14 out of 17 goals from here to 2030.
QUEST: Right. Is anybody taking it seriously --
MUNOZ: Well --
QUEST: -- besides yourself?
MUNOZ: Well, I think that we are, Chileans, but so is John Kerry, whom I give credit for having organized the first conference last year.
This will be a second conference called Our Ocean. And in singular, not plural, because it's been proven by scientists that maritime currents
actually create one single ocean. The --
QUEST: The problem is, everybody wants to do something, but nobody actually does it.
MUNOZ: Yes, but we're going to do, because --
QUEST: Why?
MUNOZ: -- next week we're going to have this conference in Valparaiso, by the ocean, in Chile. And it's not a talk shop, because
we've asked all high authorities that will be coming -- ministers, John Kerry, Prince Albert, people from civil society. Richard Branson, I heard
that you were talking about him, he'll be there.
And the idea is that they make commitments, voluntary commitments, what are you going to do? Are you going to pass a bill? Are you going to
put resources to protect the ocean? Are you going to put satellite information so that we can catch those who are fishing illegally? So --
QUEST: But that's the point, isn't it? This is not about -- I mean, the grandiose, lofty words are there. Now it's time --
MUNOZ: For action.
QUEST: Frankly, people -- not just people like you, but your fellow ministers, governments, to get their hands dirty.
MUNOZ: That's why we've invited them with one condition.
QUEST: Go on.
MUNOZ: Don't come to give speeches. Speeches will be given for sure. But come and make commitments. And we want to make you accountable so that
at the next conference you're going to have to show that what you promised this year will be met the next.
QUEST: Oh!
[16:10:00] MUNOZ: But let me tell you, last year we were in Washington, because this was the baby, the creation of John Kerry. And
then, the baton was passed to me and to Chile.
And we made commitments in Washington, and we're going to report on them. Every one of the members or governments that were there are going to
have to come to Valparaiso to say this is what we did, this is what we did, this is how we honored what we promised.
QUEST: Sir, a politician who says no speeches and we'll hold you accountable.
MUNOZ: Absolutely.
QUEST: Thank you, sir.
MUNOZ: Thank you.
QUEST: Good to see you. When we come back, talking about accountability, this is accountability on a grand scale when it comes to
Volkswagen. The problem is, who is accountable? It's QUEST MEANS BUSINESS from New York.
(COMMERCIAL BREAK)
QUEST: "We're going to fix it." That's the message from Volkswagen a week after the emission scandal broke. And the car company says it will
refit as many as 11 million cars so that they will comply with pollution limits. They're calling it a "refit." They're specifically saying it's
not a recall. Seems a bit of sophistry to me.
US lawmakers have requested information now from Volkswagen and the EPA about the alleged efforts to rig the emissions tests. Now, the
breakdown of the car's affected. So, this is how -- bearing in mind, we're getting up to 11 million. Right. So, you're talking about 5 million VW,
2.1 million Audi, commercial vehicles 1.8, 1.2 Skoda, 700 Seats.
Volkswagen says it will present the technical details to authorities in October. What's not clear, of course, is how they're going to fix the
problem and how it could affect the cars.
So, this is the issue, bearing in mind all these cars that we're talking about, the Audi, the VW, the commercial, the Skoda, and the Seat,
all those cars, this is how it actually affects it. First of all --
(ENGINE REVVING SOUND EFFECT)
QUEST: -- you have the question of the performance. Now, we know the performance is deeply affected. One -- on the road, it performs better
than it did on the track. There was more oomph-a-rama. But of course, the oomph-a-rama meant the fuel economy --
(CASH REGISTER SOUND EFFECT)
QUEST: -- went different as well. And that couldn't have been achieved without the necessary and desired emissions --
(BIRD TWEETING SOUND EFFECT)
QUEST: -- for the environment. So, between the car, the money, and the environment, you start to see exactly what on Earth this whole thing is
going to mean. It concerns that the adjustments to the emissions could hurt the other two.
Let's talk about this to Martin Leach, the co-founder of the Magma Group and also the former chief exec of Maserati. And, sir, the president
and COO of Ford Europe. You, sir, if anybody does, now the size, the scale, the depth, and the severity of this crisis. Volkswagen is now
fighting on many fronts. Where do they start?
MARTIN LEACH, FOUNDER, MAGMA GROUP: Well, it's certainly -- good evening, Richard -- it's certainly an unprecedented crisis. I think the
problem with this refit is that for many customers, the choice between lower emissions and worse performance and fuel economy would be a difficult
choice. And we know that from customer priorities.
[16:15:05] So, they can fix the emissions, certainly, but they might be giving customers another problem that the customers just don't want.
So, this is going to be a very difficult --
QUEST: Right.
LEACH: -- road for them to maneuver down.
QUEST: However, of course, the customers may not have a choice. Let's just say, for example, a customer decides they want the vroom-vroom
and don't mind all the other things. They don't have the refit. But that car could become unsalable in the secondary market.
LEACH: Well, not only unsalable, but it may well be that having discovered that this was, in fact, an illegal work-around that VW have
admitted to, it may well be that the customers is never given the choice and, therefore, a different form of dissatisfaction comes in to play.
Because it may well be that the EPA and CARB, the authorities, actually say no, you need to defeat this work-around device and the cars
must meet the legal level of emissions.
QUEST: Unless, of course, the people just decide not to take them in. This is an unholy mess. But one thing I want to just focus on is, when you
are running a car company -- and you've had experience of it -- and you have many jurisdictions.
In this case, we've got Switzerland, we've got Germany, the United States, Australia, Canada, the UK. Do you end up in a situation of
fighting on so many fronts it's difficult to see the way forward?
LEACH: Well, not particularly, because all of the manufacturers are essentially global in their aspect and are well-versed with meeting the
differing requirements that you have in North America compared to Europe, Japan, China, and the rest of Asia. So, that is sort of business as usual.
In this particular case, and how it relates to the 11 million vehicles, we know that Volkswagen have deliberately defeated the emission
regulations in North America. What is unclear at this point is why this emission software is in the European environment. The European testing
standards are completely different.
QUEST: Right.
LEACH: The European requirement is different. So, we don't know why this software is fitted outside of North America.
QUEST: Sir, thank you for giving us perspective. Come back and talk about this more as we get more details and more developments. We
appreciate it. Martin Leach joining us from London.
LEACH: Thank you, Richard.
QUEST: Sir Richard Branson thinks that the VW scandal may be exactly what the auto industry needs. He'll explain after the break.
(COMMERCIAL BREAK)
QUEST: Let's continue to talk about the question about environment and Volkswagen. Amid the emission scandal, Tesla is launching an all-
electric SUV -- it's called the Model X -- after the years of delays. Tesla is looking to the Model X to scale up manufacturing and help boost
the company's appeal.
Richard Branson says the VW scandal could be positive news. The billionaire founder of the Virgin Group told me it could be the wake-up
call the auto industry needs.
(BEGIN VIDEOTAPE)
[16:19:58] RICHARD BRANSON, FOUNDER, VIRGIN GROUP: I mean, I think if Volkswagen had gone for battery-driven cars, the car of the future, they
obviously wouldn't be having this problem today.
And again, I think it teaches car manufacturers worldwide that we are going to be going -- we have to go for a world that in 2050 is carbon
neutral. If we're going to do that, car manufacturers have got to start today changing their approach and moving to a -- moving to a world where
the cars are powered by the sun and by the wind.
QUEST: You're involved in this group, you're obviously -- the Paris talks are nearly upon us. We've got the Sustainable Development Goals.
Everybody at the United Nations this week is making climate change and environment the theme: Putin, Xi, the president of the United States.
But do you worry that it's fine to make speeches, but when it -- comes time to make the promises and the pledges, it doesn't happen?
BRANSON: There's certainly the danger of that. But it's fantastic to have China, Russia, America, some -- and a lot of European countries and
others saying the right thing. What we now need is that at Paris, they come up with a meaningful statement.
And the B Team, which is an organization I'm involved in, has said that Paris has got to say by 2050, we will be -- the world will be carbon-
neutral, and they've got to set the business world targets to get us to carbon-neutral. And if that means bringing in pricing mechanisms on carbon
on a global basis, ideally, they must do so, because I think that's the only way, ultimately, we're going to get there.
QUEST: Pricing mechanisms for carbon, as you know from the airline industry, in Europe it turned into a debacle. There's never -- even in the
energy business, pricing mechanisms and a market-traded system, it's phenomenally complicated.
BRANSON: It's complicated, but right now, all of us are benefiting from fuel prices dropping by 60, 70 percent from its highs of 18 months
ago. So, now is the time to start saying to all the dirty industries in the world, pay a little bit more, and let's put that money into getting
clean industries, wind and solar and the other things, really up and running.
Ultimately, we all benefit from that, because if the world can be powered by solar, for instance, the price of solar on a global basis would
be half what it is on fuel, and that'll drive costs down for everybody.
QUEST: Finally, do you think that ordinary people have realized and have accepted that there will be a price to pay -- and I don't mean a
financial price, I'm talking about that our life will have to change -- if we're going to be carbon-neutral by 2050?
BRANSON: I don't necessarily think our lives need to change a lot. I think that as long as the ground rules are set properly, people can switch
to clean energy, which should be cheaper than the dirty energy they've paid in the past, and enormous amounts of jobs will be created and the world
will be a happier, cleaner place.
(END VIDEOTAPE)
QUEST: You're going to hear so much more on this question, Sustainable Development Goals, COP21 in Paris. And with a major -- climate
conference coming up in just December, world leaders have been calling for action at the General Assembly in New York.
Achim Steiner is the executive director of the United Nations Environment Program. Good to see you, sir.
ACHIM STEINER, EXECUTIVE DIRECTOR, UNITED NATIONS ENVIRONMENT PROGRAM: Thank you, Richard.
QUEST: Look, if you can't get it done now, you're never going to get it done. This is your moment.
STEINER: It is the moment if we want to stay within a two-degree world, and I think everything is lining up for December to see a truly
historic next step forward. It's not the last step, but certainly Paris will be the step at which we can either be on track or get off track.
QUEST: The last COP failed. Previous ones have been talking shops. At the last one, they failed to get an agreement. Why are you more
confident this time?
STEINER: Well, I always challenge the notion that we failed. Every COP is an annual bringing together of all countries --
QUEST: No, you failed. You left without an agreement.
STEINER: Well, that was Copenhagen. That is quite a number of years ago. If you look at what has happened today, here are the facts. As of
this morning, 106 countries have submitted their national climate change strategies. It's now a universal effort to reduce carbon emissions.
Secondly, we see green bond markets shooting up. We see renewable energy technology last year, carbon form was 50 percent of all new
electricity-generating infrastructure across the world. This has changed already the energy markets.
What we are struggling with is to get governments to commit to a unified approach to it. But even that is now emerging.
[16:24:54] QUEST: And within the sustainable goals, of course, industrialization and economic growth is very much featured, because that's
crucial. But you say the UN cannot create a fool-proof plan that applies to all countries.
Every nation within its abilities and according to its reality is to do -- it's what each country does. And that's really where you're at now,
isn't it? You've got the fundamental, overarching philosophy.
STEINER: Absolutely. We have a set of shared goals. But let me just give you a simple illustration. The continent of Africa, 1 billion people.
Today, 700 million of them do not even have access to electricity. So, you cannot compare the level of action that needs to be taken by African
nations to, for example, industrialized nations.
But the goal has to be the same, because in the end, our planetary boundaries mean that we have to reduce carbon emissions across the global
economy. So, it's a convergence path in which some will move faster, others have to move faster because they are contributing more to the
problem.
But ultimately, these are the frameworks that allow us to, with 7 billion people move towards a global economy that is decoupling its
development, its industrialization, from emissions.
QUEST: Sir, thank you very much, indeed, for joining us. We look forward to it. And we hope that you will -- most certainly come back and
talk to us more about this as COP develops --
STEINER: Thank you very much, Richard.
QUEST: -- and as programs move forward. Thank you very much, indeed.
STEINER: It's a pleasure.
QUEST: Now, one of those days on the markets, a seesaw day on the markets. Let's go see how the Dow actually ended when all was said and
done. Paul is with me, Paul La Monica.
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Good to see you, sir.
QUEST: Paul, just look. We were up, then we were down. Then we were up, and down. Up and down, up and down. Why?
(RINGS BELL)
LA MONICA: This was a bit of an odd day. It was reassuring that we ended the five-day losing streak for the Dow, so that's a good sign. But
this is still the end of a really ugly third quarter. It's going to be the worst since 2011's third quarter.
The story at the end of the day, the Dow amazingly finished higher even though Apple fell 3 percent. It was down 4 percent at one point.
It's very fascinating, I think, that investors are still very skittish.
QUEST: Investors are skittish, and Carl Icahn is basically the billionaire investor, the hedge fund manager, the greenmailer, whatever you
want to call him, have a listen to what he had to say about he good times.
(BEGIN VIDEO CLIP)
CARL ICAHN, BILLIONAIRE INVESTOR: I've seen this before a number of times. I've been around a long time, I saw it 69, 74, 79 -- I tell you --
87. And then 2000 wasn't pretty. And I think a time is coming that might make some of those times look pretty good.
I look back -- and I love this country, but I sure as hell don't love a lot of the politicians in it, or the CEOs. I think they've taken
advantage of the system, and it's just deja-vu.
(END VIDEO CLIP)
QUEST: Why is Carl Icahn, who does lots of interviews, but why is he coming out with this apocalyptic thought now?
LA MONICA: It's really strange. I don't personally get it. He's talking about a bloodbath. It's really, as you say, apocalyptic, very
hyperbolic. At the end of the day, Icahn still says that he is more long than short in other interviews. When you look at his holdings, he owns
Apple. I don't know how he can stay with a straight face that he's worried about the market crashing.
(CROSSTALK)
QUEST: Yes, but he's put --
LA MONICA: -- but he thinks --
QUEST: -- huge pressure on Apple --
LA MONICA: He is putting huge pressure --
QUEST: -- all of them.
LA MONICA: Yes, definitely, to do more buy-backs, and the company has done that. But he's talked about Apple going to a more than trillion-
dollar valuation. That doesn't jibe with apocalypse. He owns a stake in Lift, the ride-sharing company that's a rival to Uber.
QUEST: Yes.
LA MONICA: If you're worried about the market taking, why on Earth are you investing in a unicorn? Private start-ups are more ridiculously
over-valued than public tech companies.
QUEST: And he lays into CEOs and politicians, but -- as you'll now hear -- he likes Donald Trump.
(BEGIN VIDEO CLIP)
ICAHN: WE need a president that can move Congress. And I think Donald Trump could do it. I disagree with him on certain issues, and
certainly would talk to him more. But this is what this country needs, somebody to wake it up.
(END VIDEO CLIP)
QUEST: Now, there was also a rude word that he used to describe other politicians. He likes Trump's tax plan. Carl Icahn was the man that Trump
wants to be his treasury secretary if he becomes president.
LA MONICA: Yes. First, if Trump wins the election, it doesn't look like Icahn is actually going to take him up on the offer to be treasury
secretary. There were a series of tweets where he first said he wasn't interested, then after watching the first debate, he said he was.
But at an event a few weeks ago, Icahn says, "I like my day job." I don't think he's going to give up managing all that money that he does for
public service no matter what Donald Trump might want.
QUEST: Good to see you, sir.
LA MONICA: Thank you.
QUEST: Always nice to have Paul La Monica's view, thoughts, and the way he's seeing the markets on a day -- a very odd sort of market day it
was.
The push to wire the world of the internet in the name of human rights. Is it one of the millennium or Sustainable Development Goals. Get
rid of the MDGs. It's the SDGs. I'm behind the times. We'll be ahead of them after the break.
(RINGS BELL)
[16:30:08] (COMMERCIAL BREAK)
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. Of course there's more "Quest Means Business" in just a moment when the chief exec of Ericsson tells me why
greater access to the internet is the key to changing the world.
And Britain's new opposition leader is calling for an end to austerity. We caught one of the economists advising him.
And before all of that, this is CNN and on this network the news always comes first.
There are reports of ongoing violence in the Afghan city of Kunduz on Monday. Taliban militants stormed the city which is in the north of the
country. They took over government buildings and freed hundreds of prisoners.
Kunduz is the Taliban's biggest gain since 2001.
The United States has stepped up its financial sanctions against members of the Islamic State. The move came as the President hosted a
summit on tackling the threat from ISIS on the sidelines of the U.N. General Assembly.
The individuals targeted by the sanctions include four British and three French. President Obama said they were using many different methods
to weaken the terrorist organization.
(BEGIN VIDEOCLIP)
BARACK OBAMA, U.S. PRESIDENT: We're stepping up our efforts to discredit ISIL's propaganda especially online.
The UAE's new messaging hub - the Sawab Center - is exposing ISIL for what is which is a band of terrorists that kills innocent Muslim men, women
and children.
We're working to lift up the voices of Muslim scholars, clerics and others including ISIL defectors who courageously stand up to ISIL and its
warped interpretations of Islam.
(END VIDEOCLIP)
QUEST: The Iranian president has returned to Tehran for the repatriation of Iranian Hajj pilgrims who were killed in last week's
stampede.
Hassan Rouhani blamed Saudi Arabia for what he calls incompetence and mismanagement. At least 768 people were killed, more than 200 of them were
from Iran.
The former FIFA vice president Jack Warner's been banned from football for life. He's been at the center of corruption allegations as well as
fraud charges linked to a U.S. investigation.
This follows the opening of criminal proceedings by Swiss authorities against FIFA's current president Sepp Blatter.
The NSA whistle-blower Edward Snowden's joined Twitter. He posted his first tweet on Tuesday under the handle @snowden. He already has over
500,000 followers.
As for the people he's following, just one - the NSA.
[16:35:13] One of the most important issues at the United Nations this week is the 2030 sustainable development agenda, the SDGs.
Facebook's chief exec's been at the forefront of pushing for global connectivity. He announced a new campaign under the hashtag
#ConnecttheWorld before the start of the General Assembly.
(BEGIN VIDEOCLIP)
MARK ZUCKERBERG, CEO, FACEBOOK: We need to work together to make connecting the world a priority for everyone from governments and industry
to civil society.
Today I'm pleased to announce that Facebook is partnering with the One Campaign - the One Organization and leaders and public figures all over the
world to launch a global campaign to support a connectivity declaration.
The declaration recognizes internet access is an important enabler of human rights.
(END VIDEOCLIP)
QUEST: Zuckerberg would be nowhere without the product of my next guest. He's the chief executive of Ericsson, a major tech company pushing
for all of this. Hans Vestberg joins me now.
I mean, Zuckerberg runs the bit that people use, you run the bit - the routers, the aerials the bit - that make the whole thing work?
So to some extent, you're the important part in the SDGs.
HANS VESTBERG, CEO, ERICSSON: Absolutely. I think that the last five years I've been here advocating that ICTs should play a very vital role, a
crucial role, in all the sustainable development goals.
We almost tried to get an 18th goal, but to goalness (ph) it is better to have the 17 goals and you have ICT in all of them. We've also proven
that basically all 17 goals can be accelerated achievement on it if you use ICT.
QUEST: Right, but goal number nine is really the one that you're talking about, that you look at -- resilient infrastructure in promoting
inclusive and sustainable industrialization.
What do you need to make that happen?
VESTBERG: Here's the answer to that - to be honest -- education, healthcare, climate change. All of them have ICTs so but what I need in
order to do this is of course that we see a very fast rollout of broadband. Ninety percent of the population will have broadband coverage by 2020, 3G
photio (ph) or fixed broadband which is enormous.
That is the biggest plan for transformation for society to make this planet inclusive. But what we need is of course a government user ties (ph)
and deep platforms to build education services, healthcare services, smart cities in order to reduce the climate change.
All that we need is that first. We need a partnership here and that's why I've been advocating last five years - being here, speaking at the
U.N., speaking on panels and all these type of things.
QUEST: Do they get it or did governments understand what their role is? Or is - I mean, you know, most people still seem to think of broadband
and mobile technology is to book a flight, it's to find a date, it's to go online.
VESTBERG: No, they're getting it. When I started 2010, it was only 30 countries in the world that had a broadband plan. Today it's 144
countries that has a broadband plan. That's a first step. So we see more and more countries understanding that broadband can transform their society
including people, equality and all of that.
QUEST: Why are you so big on this? Why did you decide it - because, look, there are many CEOs in the world, you know, but you have been at the
forefront of this.
VESTBERG: Yes I have.
QUEST: So I need to understand what is it about this that you really think - besides obviously helping your own company?
VESTBERG: I'm in 180 countries. I see this on the ground in all countries in the world that it's an impact on people, businesses but it's
also a big impact on society. And this is our business, so of course if it can advocate for that, talking and showing the world what's happening in
all these countries in the world.
There are very few other countries that are rolling out networks in 180 countries, have employees on the ground in all these countries.
That's why this is big for the company, it's big for the world.
QUEST: Pleased to have you here, sir.
VESTBERG: Thank you very much.
QUEST: (AUDIO GAP) President of the European Council addressed the United Nations today amid mounting criticism over Europe's handling of the
refugee crisis.
Donald Tusk said it's not just European nations who are at fault.
(BEGIN VIDEOCLIP)
DONALD TUSK, PRESIDENT, EUROPEAN COUNCIL: Many countries represented here deal with this problem in a much more simple way - namely by not
allowing migrants and refugees to enter their territories at all.
This is why I'm suggesting that Europe is an example of poor treatment - of poor treatment or indifference - towards asylum-seekers is sheer
hypocrisy.
(END VIDEOCLIP)
QUEST: The worsening crisis by the day. The Italian Coast Guard says it's rescued more than 1,000 migrants from boats in the Mediterranean on
Monday alone.
The E.U. has a place - a system - called the Dublin Agreement that governs asylum-seekers. Many countries such as Hungary are being
criticized for the way they are implementing this agreement.
[16:40:10] I spoke to the European Commission's First Vice President Frans Timmermans about the E.U.'s handling of the E.U.'s handling of the
crisis.
And he admits it's been less than ideal.
(BEGIN VIDEOCLIP)
FRANS ZIMMERMAN, FIRST VICE PRESIDENT, EUROPEAN COMMISSION: We're all suffering, every single member state, because the rules were not applied.
For too long we said to countries, well sort yourselves out, we're not going to show any solidarity in Europe.
And countries by and by decided not to apply the rules So we have to do two things at the same time - show European solidarity through the
distribution key and at the same time start applying the rules again (inaudible).
QUEST: Right, but Hungary says it did apply the rules. Hungary said it tried to register the people in - under - the Dublin Agreement. But of
course the Dublin Agreement was never intended to or never - was ever practicable to be run on such a large scale with so many people.
ZIMMERMAN: You're absolutely right. The Dublin Agreements came about in a different situation under different conditions. So it needs to be
revised and that's what we're going to do in the next year.
At the same time, I have to say if you compare the amounts of people who arrived in Hungary and then compare that to the amounts of people
registered in Hungary, over a longer period of time, they didn't do the registration. Not just recently but over a longer period of time.
So they need to start applying the full rules again soon.
QUEST: One thing we have seen is that countries start off saying good things and then find it's not reasonable.
ZIMMERMAN: Yes.
QUEST: Croatia's a good example. Started off by saying yes, we'll take people, people come here and then it found they had to close the
borders.
This means that the system as currently structured isn't working.
ZIMMERMAN: Yes, it's not working because we've not been good enough at protecting our external borders, we've not been good enough at sharing
the burden, we've not been good enough at preventing people from coming to Europe.
We've not put enough efforts into providing shelter and education and jobs for people where they are now in Turkey and Jordan and Lebanon.
That's what we also need to be doing and we need to be doing more to stop the bloodshed in Syria.
QUEST: I do wonder on a wider issue, Vice President, -- we've - the Europeans have not been very good at the migrant crisis, the Europeans have
not been very good at handling the economic crisis. The Europeans have not been very good at handling the unemployment crisis post 2008.
What have you been good at?
ZIMMERMAN: Now you're not very optimistic about us, are you? I think we've been very good at keeping societies together, I think we've been very
good at ending the European Divide which was the biggest challenge for the last 20 years. But we need to do better at the things you've just
mentioned.
And just remember, we are the continent of departure. For centuries we've been the continent where people leave to move elsewhere. Now we've
become the continent of arrival. It takes time for countries and people to adjust to that reality.
We will handle the issue, we will make sure that we can handle it, but it will take time and it will take some political - difficult political -
decisions.
(END VIDEOCLIP)
QUEST: In a moment, tough talk to applause. The new head of Britain's Labour Party's been getting an earful. And I'll be hearing from
one of Jeremy Corbyn's new economic advisers.
(COMMERCIAL BREAK)
[16:45:30] QUEST: Britain's economy must change is the message from the new head of the U.K. Opposition Labour Party. Jeremy Corbyn made his
first speech since becoming leader of the party.
He pledged to solve the U.K.'s housing crisis and end austerity. And even he looked a little surprised by the response.
(BEGIN VIDEOCLIP)
JEREMY CORBYN, BRITISH LABOUR PARTY LEADER: Our Labour Party says no. The British people never have to take what they're giving.
(LONG APPLAUSE)
(END VIDEOCLIP)
QUEST: Now, Jeremy Corbyn's looking to these seven economists, or at least John McDonnell his chancellor is, to bring Corbynomics to life. They
include a Nobel Prize-winning economist, several members of the former - the Monetary Policy committee and several authors.
One of the chosen seven, Anastasia Nesvetailova is a professor at City University and joins me now live from London.
So you, Professor, you are one of the chose seven. How much do you actually agree with the policies that have already been put forward or
espoused by Corbyn and McDonnell?
ANASTASIA NESVETAILOVA, DIRECTOR, CITY POLITICAL RESEARCH CENTER: I think I agree with the broad principle of reconsidering austerity politics
and economics.
As a program, it hasn't delivered and there's a political message it is unable to deliver.
So the whole purpose of the panel and of New Labour leadership to draft a serious economic content of the post-crisis program is to challenge
the austerity economics as a dogma or as an axiom if you want.
QUEST: Right -
NESVETAILOVA: Because it simply doesn't work.
QUEST: -- within that, do you - for example, -- highly controversial policies like renationalizing things like the railways. Do you support
those policies?
NESVETAILOVA: Here howth (ph) I have to say that nobody from the Labour Party has spoken to me in terms of appointment me or as I understand
my co-panelists for being the spokesperson for the party.
So intellectually I can anticipate that we might well disagree with some of the proposals and even between ourselves - the seven members of
this committee.
In terms of specifically nationalization, I understand from John McDonnell's speech yesterday it is still being thought through --
QUEST: Right.
NESVETAILOVA: -- and some details are going to be measured and modeled. But the very principle of even thinking about it as a policy
measure is to challenge the very ideologically-driven privatization.
Privatization is -
QUEST: Right but -
NESVETAILOVA: -- a policy to --.
QUEST: -- within that, because obviously we've got a lot of ground to cover, the one things that is concerning a lot of people is this question
of people's QE that they talk about -- the idea of the Bank of England printing money for development projects or even for government surplus.
That would raise questions about the independence of the Bank of England. I assume you're in favor of a full independent central bank?
NESVETAILOVA: Yes, I am and it often gets confused, the idea of people's QE, the idea of challenging or rethinking the Bank of England's
mandate and the idea of banker independence.
What is being as I understand put on the agenda is to think to what extent the mandate of the central bank or the Bank of England is adequately
and is adequately drafted for this institution to be equipped for the next financial crisis which is quite likely to come at some point in the short
to medium future.
The problem is -- or the backgrounds to the story -- and a lot of people in the city and lot of the regulators I'm sure would agree with this
statement that -
QUEST: Right.
NESVETAILOVA: -- central banks have become really important players in our economies. They're now in charge of monetary policy, they're in
charge of financial stability, they have to look at bank supervision, they're trying to understand the complex system of shadow banking. But the
official mandates are very narrow and they're confined in the choice of the -
QUEST: Professor -
NESVETAILOVA: -- tools and methods. And it's important - yes?
[16:50:02] QUEST: I'm afraid we do need to bring it there. As the work comes along, please let's talk more about it. For joining us - thank
you for joining us from London -
NESVETAILOVA: My pleasure.
QUEST: -- forgive me for interrupting the professor there. We have some breaking news that I do need to bring to your attention.
Ralph Lauren is -- or Loren - I'm never sure if it's Loren or Lauren. Anyway, it doesn't matter really - he's stepping down as the chief
executive of his eponymous company. Stefan Larsson has been named as his replaced starting in November.
Larsson served as global president of Old Navy which is a division of GAP. Ralph Lauren says he will remain active in the company's future as
executive chairman and chief creative officer.
All of that for the future. One of the top business websites in a big money deal of its own. First, "Business Insider" is sold to one of
Europe's leading publishers. We'll talk to the site's chief executive after "Make, Create, Innovate."
(COMMERCIAL BREAK)
QUEST: The website "Business Insider" has found itself inside its own news rather than reporting it. The German publishing giant Axel Springer
is buying it.
"Business Insider" would like to - was like powerhouse and whopping (ph) to report its own sale. It's $422 million. Axel Springer publishes
such titles as the German Edition of "Rolling Stone," "Die Welt," the leading German newspaper, "Bild," the German tabloid with the largest
circulation, "Auto Bild" and "Sport Bild."
Joining me is Henry Blodget, the founder and chief exec editor-in- chief. Henry, --
HENRY BLODGET, FOUNDER AND CEO, "BUSINESS INSIDER": Thank you.
QUEST: -- how would you like them to describe the purchase? Give me some good adjectives.
BLODGET: Well, I think this is very forward-looking, this is a company that is very, very smart about digital. Not very well known in the
United States yet, but they've transformed their own business from a print publisher ten years to now where 75 percent of their revenue profit is
coming from digital. So we're very excited.
We've been - they had been - a shareholder for now about a year, we've gotten to know them well, they're very smart.
QUEST: So when people like me say this is about convergence of old media and new media, you roll your eyes and think 'there goes that old
cliche.'
BLODGET: I don't think it's about convergence, but I do think it is about a generational shift to digital. Folks who are my age and older, we
grew up in newspapers, we may still read them, we watch a lot of television, we have our habits.
But if you look at 16 to 35-year-olds, they are spending most of their time on this, some of their time on that. As they get older, they're going
to be the mass market and digital is really going to be the future.
QUEST: Right. But as people are using this, keeping them locked in so that, you know, today's flavor-of-the-month site isn't tomorrow's
history.
And that's why you go for subscription. You really want to go for the subscription.
BLODGET: The subscription's great and it allows you to have a much deeper journalistic offering than you can with just ads so we're excited
about that. But I think it - the flavor of the month for a particular app or a particular game, it's different when it comes to journalism.
There's going to be huge demand for great journalism and stories forever. We know that, we are a story-telling species, we want to know
what's going on in the world.
Somebody is going to have to come up with those stories and tell us. So, it's only a question who's going to do it, how are we going to deliver
it and ultimately how are we going to pay for it?
And some of the digital businesses like "Business Insider" we think we're starting to really figure out how you can do great journalism with a
new model.
QUEST: OK, so an enormous amount of money, that this is the highest amount really that's ever been made. "Huff Post" wasn't in the same
league.
[16:55:04] This is the most money which either tells you that they've overpaid or that you are about to become a powerhouse with Axel Springer.
BLODGET: Well, we think long term we very much hope to become a powerhouse and where we think the industry is, is really the cable networks
in the late 80s and early 90s like CNN, where CNN launched in 1981, everyone thought it was crazy, you can't have 24-hour news.
By the late 80s, people said, 'OK, maybe there's room for 24-hour news,' but still small, not really well known. Then over the next ten to
20 years, you became this global powerhouse -
QUEST: And that's what (inaudible).
BLODGET: -- incredible success. Yes, exactly, these things don't get built overnight. We have a very long timeframe and we're excited.
QUEST: Long timeframe, don't get overnight.
BLODGET: Thank you.
QUEST: Thank you, sir. Congratulations -
BLODGET: Thank you very much.
QUEST: -- on what obviously is an enormous deal. Let's see if you're still working in a year or two.
(LAUGHTER)
BLODGET: We will be, I love it.
QUEST: We'll have a "Profitable Moment" that comes after the break. "Quest Means Business," good evening (RINGS BELL).
(COMMERCIAL BREAK)
QUEST: They call them the sustainable development goals. They are the replacement for the millennium development goals and when you look at
them, there is not much that anybody can disagree with. It's all about sustainable growth, environmental protections, inclusivity, you name it.
The problem of course now is you've got the overarching idea and philosophy, individual countries have to put it into practice.
And that's what this week is all about as we move towards Paris and towards the end of the year.
The SDGs are a great idea. Now let's see if they can make them actually a reality. That will be the challenge. And that is "Quest Means
Business" for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's profitable.
I will be at the CNN Center tomorrow.
END
