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Quest Means Business

Airport Security Discussion; Egyptian President in London; Tanaka Stock Plummets

Aired November 05, 2015 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[16:00:00]

RICHARD QUEST, HOST: Well you don't see this very often, literally zero percentage change. It could have been up and down sort of topsy-tipsy-turvy

short of session. 3m ringing the closing bell and I think we call that a firm gavel to bring trading to a close on Thursday the 5th of November.

(BEGIN VIDEO CLIP)

QUEST: Tonight, proceed with caution. British carriers ban checked luggage on flights out of Sharm el-Sheik. World leaders air their differences over

what could have caused the crash. And Russia mourns those it lost in a disaster that remains unexplained.

(END VIDEO CLIP)

QUEST: I'm Richard Quest. We have an hour together, and I mean business.

(MUSIC PLAYING)

QUEST: Good evening. Russia is beginning the burial of the victims from Metro Jet flight 9268 whilst leaders are sparring over the cause of the

crash.

(BEGIN VIDEO CLIP)

QUEST: The British Prime Minister David Cameron says in his words it was more likely than not that a bomb brought down the airbus, A-321.

And speaking to CNN, a U.S. official said suspicions there was a bomb plot arose from the specific nature of some chatter detected online. Contrast

that within Egypt where the Civil Aviation Minister has pushed back hard saying officials have no evidence to support that claim.

And the head of Russia's air transport agency agreed saying investigators are months away from drawing any conclusions.

(END VIDEO CLIP)

QUEST: Meanwhile, in Downing Street, the Egyptian President said British officials have been checking security at Sharm el-Sheik airport for ten

months.

(BEGIN VIDEO CLIP)

ABDEL FATTAH EL-SISI, EGYPTIAN PRESIDENT: (As translated) We say it one more time. We are prepared to cooperate further with any procedures that

reassure our friends that security measures in place at Sharm el-Sheik airport are enough and that the airport is safe to a good standard.

(END VIDEO CLIP)

QUEST: And so there's a straightforward disagreement between leaders with the Anglo American Alliance very firmly now coming down on the side of an

explosive device.

For those who are in Sharm el-Sheik, well the British Prime Minister's office announced flights from the region to the U.K. will resume on Friday

and there are some extraordinary restrictions that are going to be in place.

(BEGIN VIDEO CLIP)

QUEST: Flights from Monarch, Easy Jet and British Airways will take place. They'll have flights out of Sharm tomorrow. But there is a restriction on

the rescue flights. You can't bring -- well, you can bring hold baggage, but it will be sent separately from the aircraft and you're restricted to

one cabin bag with very strict restrictions that you will be reunited with your luggage once you get home.

Thomson, Euro Wings, Thomas Cook and Edelweiss Air they are -- continued maintaining flights suspended through until November 12 as more and more

airlines try to work out the ramifications for all of this.

And the ANVR which is the Association of Dutch Tour Operators, say they're waiting for results and the next scheduled flight would be on Sunday. For

security experts, it's the possible lapses at Sharm el-Sheik airport with U.S. evidence suggesting someone helped place a bomb on board the plane.

(END VIDEO CLIP)

QUEST: Ian Lee is at the airport and, Ian; I want to start first of all with these extraordinary restrictions that we are now hearing for this

British Airways, Easy Jet, Monarch. You've seen the letter that they're being handed out and you know in that sense. So basically they're saying

bring your luggage but your luggage is going to go a different way than you. Is that right?

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: That is exactly right. And it is quite extraordinary and it's probably what came out of this meeting between

British security officials and Egyptian security officials. British officials worried about security here. They've been meeting for a couple of

days now and now we're seeing this -- these flights resume ,but with these restrictions.

So it seems like that is the deal that they were able to come up with to get these flights back going and these stranded tourists back home.

(BEGIN VIDEO CLIP)

LEE: And talking to some of them, they were quite frustrated with how this all turned out. They wished they were better informed and had a better

heads up that these flights were going to be delayed. But as we heard from the Prime Minister, this was something that was taken with the safety of

British nationals in mind.

[16:05:05]

But I have to tell you, a few hours ago there were hundreds of people here behind me. Still this is very much a busy airport, a lot of people going

home. A lot of people I talked to were going to Ukraine and I asked them if they felt safe and they said absolutely. They said security concerns

weren't on their minds, Richard.

(END VIDEO CLIP)

QUEST: Ian, this concept, now this idea that somebody at the airport was or at least complicit - responsible or complicit for getting a device on. Now

I spoke to the tourism minister a few days ago, we heard the President say security conforms to all international standards. Yet one's left wondering

where the truth lies in all of this.

LEE: You know the interesting thing someone brought up to me today was that as you know Sharm el-Sheik hosts a lot of international conferences where

they have world leaders coming in all time. They have business leaders coming in so they know how to have really tight security. And coming to one

of these conferences you do go through a lot of checkpoints, a lot of bomb- sniffing dogs and so it must be good enough for these world leaders to come and visit so officials here are talking to them are insulted by these

accusations. They say that security here has always been tough and it will remain tough.

QUEST: Ian Lee who's in Sharm el-Sheik for us tonight. Simon Calder is the travel editor for the British newspaper the "Independent" and it's always

good to have Simon with us to put some perspective into this.

Simon, the restrictions on baggage. I mean I'm reminded of you know after the underwear, or the shoe bomber, I can never remember which, when

suddenly liquids and gels and you weren't allowed to bring anything on board except what you could carry. But these restrictions, what's the logic

behind all of this?

SIMON CALDER, TRAVEL EDITOR, THE INDEPENDNET: It's very simple and it goes back to the heart of this, which is the British government saying to the

Egyptian government we do not trust your air security: therefore we are seeing first thing in the morning British time a fleet of seven Easy Jet

flights, five Monarch flights going out to Sharm el-Sheik with their holds sealed.

(BEGIN VIDEO CLIP)

CALDER: Those will be checked when they arrive at Sharm el-Sheik there will be guards on duty to make sure nobody puts anything at all in the hold.

(END VIDEO CLIP)

CALDER: So passengers are being told yes just bring one small item of cabin baggage which you can take into the aircraft if you take more than that,

it's going to be flown home with the rest of your stuff by the RAF, the Royal Air Force will be sending over transport planes to bring passengers'

luggage back.

QUEST: So it's the RAF that's bringing the stuff back. Look, I'm aware 224 people are dead and there's a possibility of a bomb, but does this seem

like a dramatic overreaction by the British to a situation where first of all we're not entirely certain it was a bomb and secondly you can at least

check the baggage when it's there.

CALDER: Well, exactly. The closest I can come to this -- and its stretching back into the memory banks a bit -- is immediately after the aftermath of

the Lockerbie bombing, 21st December 1988. After that appalling outrage, it was a Pan Am jumbo jet flying from London to New York downed over Lockerbie

in Scotland. After that, the Americans in hours were sending security officials to airports right across Europe and effectively saying, hey, we

are going to impose our own secondary checks.

That's effectively what the British government is saying right now and one can only imagine, Richard that they have some kind of intelligence which

says to them this is absolutely crucial to keep British airlines and British passengers safe.

QUEST: Sharm el-Sheik is an extremely significant destination, not only for British tourists who go there frequently but also for the Egyptians. And to

a large extent has been if not insulated at least not as effected by the Arab spring, by the (inaudible) by the government upset and by the unrest.

People have managed to divorce the Red Sea resorts from the rest of Egypt. Does that change now?

CALDER: I think what -- it all depends on what we -- going right back to the terrible tragedy that happened on Saturday morning Egyptian time. It

all depends what the investigators find. If it turns out if it was a bomb then it will be effectively Russia's Lockerbie.

(BEGIN VIDEO CLIP)

CALDER: That is immediately going to transform the attitude of Russians to holidaying in Egypt and they are a very important market. It will also

upset an awful lot of other people. It just depends. If it turns out to be a dreadful accident, that will be different.

(END VIDEO CLIP)

[16:10:07]

QUEST: Finally, Simon, we have a direct contradiction here between the U.S/U.K. saying it's a bomb or we believe it's a bomb, or it has the

hallmarks of a bomb, you can parse whichever language you like, but the Russians and the Egyptians saying there's no evidence of that yet and there

won't be evidence for some time to come. The traveling public doesn't know what to make of it.

CALDER: No, absolutely not. It's very upsetting for the traveling public.

(BEGIN VIDEO CLIP)

CALDER: It's also very upsetting for the grieving relatives of the victims of the crash who of course want answers, but they want accurate answers

rather than politician's speculation and, dare I say it, spin.

(END VIDEO CLIP)

QUEST: Simon Calder, very grateful you've come along this evening to give us perspective and insight. Thank you, sir.

Russian victims, an Egyptian airport, and officials in both countries irritated.

(BEGIN VIDEO CLIP)

QUEST: But Washington and London are talking about evidence of terrorism and yet, according to what they're saying, aren't willing to share the

evidence about that. We'll talk about it more after the break. .

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(END VIDEO CLIP)

(COMMERCIAL BREAK)

(MUSIC PLAYING)

QUEST: Egypt Civil Aviation Minister is pushing back hard against U.S. and British statements that a bomb was probably responsible for bringing down

Metro Jet flight 9268.

Hossam Kamal, said there is no evidence to support this hypothesis and he said the U.S. and the U.K. haven't revealed where they got their

information from.

(BEGIN VIDEO CLIP)

HOSSAM KAMAL, EGYPTIAN CIVIL AVIATION MINISTER: There is a committee going on with this investigation. This committee is the only channel that can

bring any reports or any media release concerning this accident. At this moment there is no indication or this committee does not announce any

report that there is something like a bomb or explosion happening to this airplane. What these two sides have announced, this is all something that

we don't know from where did they bring this information?

UNIDENTIFIED FEMALE Who makes up this committee? Who -- from what country?

KAMAL: Egypt, France, Russia, Ireland and Germany. Because the aircraft is Airbus as we all know its French this aircraft has been assembled in

Germany. It's registered in Ireland and the President is from Russia and the accident happened in Egypt.

[16:15:08]

UNIDENTIFIED FEMALE: Minister, obviously the U. S and the U.K. have very sophisticated intelligence-gathering methods. Presumably that's how they

have come to this preliminary conclusion. Are they sharing any of that with you?

KAMAL: No. No. They did not say anything.

UNIDENTIFIED FEMALE: And how long will the committee you're talking about take to conclude its investigation?

KAMAL: As you all know, that any result for an accident or announce the reason for this accident or the expected reason for the accident can take a

long time. But during this investigation maybe there's some signs that could lead the committee to go which way exactly they go. Is it something

technical? If it's not technical I think this will be in a few days. I think if there is some -- any indication, any indication coming through the

investigation, through this base, it will be announced. But the final reports always announced after a long time. I don't think it will be before

two, three, four months from now.

(END VIDEO CLIP)

QUEST: And even some -- that might be some optimistic to have a maybe an interim report after 30 days.

David Cameron is standing by the theory that it's more likely than not that a bomb brought down the plane and as you heard Egypt and Russia are both

saying it's too soon to tell.

The British Prime Minister met the Egyptian President in London. Mr. Cameron said his decision to suspend flights to Sharm el-Sheik was

justified.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: Of course I cannot be sure. My experts cannot be sure that it was a terrorist bomb that brought down that

Russian plane. But if the intelligence is and the judgment is that that is more likely than not outcome than I think it's right to act in the way that

I did.

(END VIDEO CLIP)

QUEST: Fred Pleitgen is in London. Was it uncomfortable to have President Sisi and Cameron standing next to each other when one has basically just

dealt the other an extremely nasty blow?

FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean absolutely. I'm sure both men were somewhat uncomfortable. However they did

their best to try not to show it, both of them using very diplomatic language.

I mean we just heard there from David Cameron as to what he says. He's basically saying listen, at this point in time of course no one can say

with certainty whether or not this was in fact a bomb that brought down this plane, however, it is more likely than not that it was.

(BEGIN VIDEO CLIP)

PLEITGEN: And in effect Mr. Cameron is saying that he is responsible for the safety of the Brits traveling to Egypt and therefore he believed this

was the best course of action. Now we've seen, of course, that there has been some friction between the Egyptians and the Brits over this issue.

We've just heard, of course, also from the aviation minister there.

However, Abdel Sisi in that press conference seemed a lot more diplomatic. Was saying of course he wants to -- the Brits to ensure the safety, he

wants to make sure that they feel that they can trust airport security in Sharm el-Sheik. He says that British authorities were - have asked to come

over to Egypt and inspect Egyptian airports about ten months ago and he claims that they had no issues with the safety - with the safety procedures

at that point in time.

(END VIDEO CLIP)

PLEITGEN: So Richard what you saw there in that press conference was on the one side Abdel Fattah al-Sisi saying please come back to our country, we

don't want people to be afraid. We want you to come back, we want you to feel safe in the country. But at the same time of course we know both the

Egyptians and the Russians are saying listen, let's not draw fast conclusions on this.

QUEST: And then you have this fact that the Egyptians are saying you haven't given us any information. You haven't revealed that which upon you

have based your decision. Now I can understand they're not going to -- the Brits are not going to say well look here's the name of the man who told

us. But the Egyptians have a right, surely, to be a little bit miffed in these when - in these circumstances do they or maybe not?

PLEITGEN: Well, they certainly do. Yeah, they certainly do. They certainly do. They do and the Russians certainly do as well. Because on the one hand

you have to keep in mind that of course they'll want to know what happened to that aircraft and if there are any indications as to what might have

brought that aircraft down certainly they would expect both the U.S. and Britain to share that with them. The Russians and the Egyptians would

expect that.

And second of all, if someone did, indeed, plant a bomb on that aircraft, that person is still at large and might still be working at that airport.

Or in some other sort of capacity having access to the secure areas at that airport.

(BEGIN VIDEO CLIP)

PLEITGEN: So certainly they have a vested interest now only for the investigation but also of course for the future safety of air travel there

in Sharm el-Sheik. So that's one of the reasons why of course the Egyptians were saying listen, you're not sharing any of this information with us.

It was interesting because David Cameron also spoke to Vladimir Putin today and after expressing his condolences he said once again that he believed

that it was important for him to take on these measures.

(END VIDEO CLIP)

[16:20:06]

PLEITGEN: But Vladimir Putin said, listen, any information that comes out about what might have happened has to come from the official investigation.

So you can - you can feel that standoff taking shape, Richard.

QUEST: Fred Pleitgen who is in Downing Street for us tonight. Fred, thank you.

(BEGIN VIDEO CLIP)

QUEST: There's more trouble for Takata. We're going to show you what happened after more car companies said they're ditching Takata's components

for air bags.

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(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

QUEST: One of those sort of days where you did wonder where the market was going to finally settle. Just off four points, barely worth talking about.

Slightly lower. A topsy-turvy sort of session.

Investigators are waiting for the U.S. jobs monthly numbers. The report is out early Friday morning.

Now in Tokyo, Takata shares were a big story. They were down 25%. That's quite a lot on fears more car makers are going to cut their ties with the

air bag maker. Takata is struggling with fallout over the defective air bags. Some of the air bags have been known to explode and as many as eight

people have been killed.

(END VIDEO CLIP)

QUEST: So 25%. Paul La Monica, when you lose a quarter of your share price in a day, that is a matter of some concern to put it mildly. The Takata

problems have been known for a while. What's changed the sentiment?

PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: What you've had the past few days, the fine that the company now has to pay, $70 million in the U.S.

The possibility of another $130 million as well, Honda saying that they will no longer use the components in those front air bags, that seems to

have led other companies to say that they either are already not using them like Mazda, which confirmed they're not - they haven't been using them

since late last year and now Mitsubishi as well saying that they're going to dump Takata also. It really does beg the question if this is a ripple

effect, dominoes falling and other major manufacturers start saying the same thing, that they have to distance themselves from Takata.

QUEST: How close are we to - I mean I don't know the minutia of Takata's orders, but how close are we to them being in serious trouble of the

survival of the company, or are we there?

LA MONICA: I don't think we're there just yet even though as you point out a quarter of your value in one day is dire to say the least.

(BEGIN VIDEO CLIP)

LA MONICA: The company strangely enough said actually said a few months ago that they thought things were getting better, they were profitable it

seemed as if things had stabilized but now that's suddenly of course into question. I think people are going to wonder are they going to lose money,

will they run out of cash? Again, we're not there yet but the questions are starting to come up.

[16:25:14]

(END VIDEO CLIP)

QUEST: OK, let's turn the markets, if we may. We've got a jobs report tomorrow. We've had -- Janet Yellen spoke yesterday. The statements from

the Fed suggest December - well not suggest, they say specifically you know it's on the cards. Where is -- this is one of these unfair questions. What

do you think is going to happen?

LA MONICA: What do I this is going to happen in terms of what the numbers are going to be like? I would love for that number to begin with a "2."

(BEGIN VIDEO CLIP)

LA MONICA: As in 200,000 not 20,000 obviously. I think we're still going to be stuck in that somewhere between --

QUEST: But 200,000?

LA MONICA: Over 200,000.

QUEST: Is a guarantee -- is almost the seal of approval for a rate rise.

(END VIDEO CLIP)

LA MONICA: Except for the fact that we have another jobs report in December for November before the Fed meets in the middle of the month. So one number

is not going to be enough. If this is a strong number and if the numbers for (inaudible) are to revised higher, everyone's going to have the knee

jerk reaction of the oh, they're going to raise rates in December. But we have the one other jobs report that the Fed clearly is waiting for. They're

data dependent, that mean data pleural not data one month.

QUEST: I'm not sure I go along with that. I think if the previous months are strong and even if December is a little bit better (inaudible)

LA MONICA: We'll find out in about two months. Less than two months.

QUEST: I want to know now.

LA MONICA: So does Wall Street.

QUEST: ExxonMobil says it's received a subpoena from New York's Attorney General asking them to hand over documents detailing its internal

discussions on the issue of climate change.

(BEGIN VIDEO CLIP)

QUEST: Now the claim is that Exxon has lied over research it had done concerning climate change. The oil giant has issued the following statement

"we unequivocally reject allegations that ExxonMobil suppressed climate change research contained in media reports that are inaccurate distortions

of ExxonMobil's nearly 40-year history of climate research." Straightforward that.

(END VIDEO CLIP)

QUEST: As theories circulate over what brought down flight 9268, in a moment we're going to take you to Russia where ceremonies to bury the

victims have begun.

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(BEGIN VIDEO CLIP)

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[16:30:44 ] 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 Disney hopes for a magic end to the year as it releases fourth quarter numbers.

And the FIFA presidential candidate Tokyo Setwale tells us, "It's time for Africa" to run world football.

Before all that, this is CNN and on this network the news always comes first.

U.S. officials say specific chatter about the crash of a Metrojet flight last weekend suggests terrorists may have placed a bomb onboard.

Officials say the chatter suggests someone at Sharm El Sheikh Airport may have helped to get a bomb onto the aircraft which was bound for Saint

Petersburg.

The White House says while it does not know for certain what caused the crash, it is looking to ramp up security for some flights.

(BEGIN VIDEOCLIP)

JOSH EARNEST, WHITE HOUSE. PRESS SECRETARY: At this point the United States has not made our own determination about the cause of the incident.

However we can't rule anything out including the possibility of terrorist involvement.

Obviously you heard the announcement from the British government about steps they were taking to ensure the safety of the British traveling public

and currently the Obama administration is reviewing a number of different steps that we can take to enhance security for commercial flights bound for

the United States from certain foreign airports.

(END VIDEOCLIP)

QUEST: The British Prime Minister David Cameron says it is more than likely that a bomb was the cause of the crash. Egypt Civil Aviation

Minister says there's no evidence to support that theory.

And the Russian foreign ministry has criticized Britain for not sharing the reasons for its suspicions.

(BEGIN VIDEOCLIP)

MARIA ZAKHAROVA, RUSSIAN FOREIGN MINISTRY, VIA INTERPRETER: Honestly, what's really shocking is realization that the British government has some

kind of information that could shed light on what happened in the skies above Egypt.

And it turns out that the information, if it exists, and judging by the fact that it was pronounced by the head of a foreign office, it does exist,

that information was never shared with the Russian side.

This is truly shocking.

(END VIDEOCLIP)

QUEST: The British prime minister's office says flights from Sharm El Sheikh to the U.K. will resume on Friday. Passengers returning to Britain

will only be allowed to bring hand baggage. Their checked bags will not come on the same plane, they will return separately it is believed by Royal

Air Force flights.

Outbound flights remain suspended. Rescue workers support more than 100 people out of a factory in Pakistan that collapsed on Wednesday.

At least 23 people died and rescuers are warning more bodies could still be found. The fourth floor of the building in the hall was still being built

when it collapsed.

Officials in Russia say they have identified the five people who lost their lives when a Metrojet airliner crashed. The first of the funerals for the

victims has taken place on Thursday.

(VIDEOCLIP OF FUNERAL)

QUEST: Nina Lushchenko was among the 224 people who died when the plane went down in the Sinai. People in Russia are mourning and the governments

are bickering over claims that a bomb was probably responsible for the disaster.

CNN's Matthew Chance with more.

(BEGIN VIDEOCLIP)

(MOURNERS SINGING)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: In a tiny chapel near Saint Petersburg, the grief of an entire nation is pouring out.

The tears are for Nina Lushchenko, the 60-year-old canteen worker at a local school. Now the first victim of Russia's worst-ever air catastrophe

to be laid to rest.

FEMALE COLLEAGUE, TRANSLATED BY CHANCE: "She always greeted us with a smile," says her grieving colleague. "Real full of kindness and humanity.

We will always remember you," she says.

[16:35:07] CHANCE: Russians are no strangers to air disasters but this latest appears to have struck a chord. Perhaps because the passengers were

mainly families, including at least 25 children.

For a cheap Egyptian holiday to escape the Russian cold, ordinary Russians know it could so easily have been one of them.

Outside Saint Petersburg, another funeral of another victim. The bereaved mother of 31-year-old Alexey Alexeev grasps his portrait to her heart.

(MOTHER CRYING)

Supported (ph) a holiday with another colleague by the heating factory they worked for, a common bonus for Russian employees. Their boss was among the

mourners.

BOSS, TRANSLATED BY CHANCE: "They were enjoying themselves," he says, "sending photos and messages to us. When I was called on Saturday I just

couldn't believe it," he adds.

"Here I have a life, my guys are gone."

CHANCE: It is that sense of utter shock this entire nation now shares.

(END VIDEOCLIP)

QUEST: This is a scene that is all too familiar to Mary Schiavo, the former inspector general of the U.S. Department of Transportation and a CNN

aviation analyst who joins me now.

You represent families in these situations now, Mary. You have spoken to many of them over the years. Look, they must be downright puzzled at the

moment.

The Brits and the Americans say it's a bomb, the Russians and the Egyptians say there's no evidence of it.

MARY SCHIAVO, CNN AVIATION ANALYST: That's right, and the one thing they want more than anything are answers. And then of course they also want to

make things better so it doesn't happen to any other family in the future.

But on an international crash, that's a lot tougher. For example, in a crash in the United States or in Britain, there are a lot of rights that

people have. They have their own case, they can get discovery, they can find out a lot of facts.

On an international case when nations are playing tug of war, those facts will likely have to wait many months or many years and they will learn -

much to their chagrin - they will learn the meaning of real patience.

It's going to be extremely hard on them.

QUEST: Mary, what's your feeling on the facts as we know it? I guess I'm really - I guess I'm really asking you, a bomb or not a bomb?

SCHIAVO: Well at this point that's the whole summary. Because we still have to ask the question, we should be pursuing both hypotheses.

And I can think of cases both ways were people were convinced it was a bomb and it was not - TWA 800 - or where people were convinced it was not a bomb

and then it turned out to be a bomb - a Korean airline brought down by North Korea and some other cases, Japan Airlines for example.

So I think we need to have exhaust both possibilities. There are lots of air worthiness directives out on the plane, we can point to other crashes

where a bad repair brought down an airliner - Japan Airlines 123 -

QUEST: Right.

SCHIAVO: -- Air China 611, but the prospect of this being a terror attack is so overwhelming and so risky to the entire world of aviation that they

have to respond this way.

I think that the nations are doing what they have to do to protect their citizens. We have to do both - if it's a mechanical or if it's a bomb.

QUEST: If it is a bomb or other device, then it really does throw open this whole issue of airport security and an entire - I mean, the Egyptians

have been quite adamant that Sharm El Sheikh as an international destination is secure.

So everybody has - including the U.S. which of course has had some fairly damning reports about the TSA of late. Everybody's going to have rethink

their security structures.

SCHIAVO: Absolutely. Because the way we do security is we tend to respond to the last attack, so we're still saying we've secured the airport and we

look at everyone's liquids and we look at the shoes and we look at all the passengers because the last attack brought the threat vector in through the

passenger terminal and through the passenger way.

But people are forgetting, for example, -- and I know you'll remember this - but people will - are - forgetting about project Bojinka, the plan out of

the Philippines to bring down a dozen American jetliners over the Pacific.

And what did they do there? They were going to use nitroglycerin bombs in contact lens solution bottles and the bombs would have likely been

completely untraceable, undetectable, and that was the plan on that one.

[16:40:11] The last attack in Russia was two women. So what we have to do is expand our security and so Sham El Sheikh may do great passenger

security, but they have to look at everyone else at the airport, and I think that's a realization that will come now with this latest intelligence

report that it was someone in the airport.

QUEST: Mary Schiavo, thank you for joining us. Thank you.

He says Sepp Blatter's a personal friend and sponsors have too much power over football. Tokyo Sexwale tells us why he can be the next FIFA

president and why it's probably time for Africa to have the top job.

(COMMERCIAL BREAK)

QUEST: Adidas share rallied strongly after its latest earnings report. The sportswear maker reported an 18 percent jump in sales and it also

raises full-year guidance.

The stock was 8 percent to the good. Isa Soares asks the chief exec Herbert Hainer how Adidas now will build on its success.

(BEGIN VIDEOCLIP)

HERBERT HAINER, CEO, ADIDAS: First and foremost, I have to say that I am very pleased with our third quarter. Sales are up 13 percent and the

shining star of both the brand Adidas which was up 14 percent in this quarter.

And we were lucky we were growing everywhere around the world - beating North America, double-digit investment in Europe, double digit in Greater

China, double-digit in their emerging markets, double-digit so that growth is really coming broad based all over the world. And also from various

different categories within our business.

But also the Reebok brand had its tenth consecutive quarter of growth, and as you said already, growth was up 6 percent.

So all in all, very pleasing.

ISA SOARES, CNN ANCHOR AND CORRESPONDENT: Mr. Hainer, I wanted to ask you a bit about what is happening at FIFA. Of course you're one of the

sponsors.

We heard in the last few months ago, we saw McDonald's, Visa, Coca-Cola, all calling for reform at FIFA. But Adidas didn't and you faced some

criticism. Why didn't you push hard on FIFA?

HAINER: Honestly, I don't think this is correct what you are saying. We have been the first one, beginning even before the World Cup in 2014 where

we said that we expect from FIFA reforms, transparency and that all the allegations will be resolved.

[16:45:04] And this is what we continuously say. And just a few weeks ago I said that I have great confidence in their reform and in the ethics

committee that they're doing their job, and two days later the ethics committee has already decided to suspend Mr. Blatter and Mr. Platini.

So they are doing their work and I think this is exactly what the right thing to do because it's not only people. We need clear reforms in

structures and processes within the FIFA, and I think they are going through and doing their job.

SOARES: How has the crisis or has the crisis at FIFA hit your brand? How are you - how worried are you about the developments we will be hearing

almost on a daily basis out of FIFA?

HAINER: Put first and foremost I think we're all clear that this is not good for football and neither for the fans, for the players and for the

whole world.

For us as a company, as you have seen on our numbers, we don't have any damage because I do believe that the consumer is very well differentiating

between the Federation and the organization on the one hand, and on the other hand, on our brands and on our companies.

And as you have seen, especially our footware sales have done very well in the third quarter.

(END VIDEOCLIP)

QUEST: Adidas' view on the FIFA scandal. Now one of the men hoping to be the next FIFA president says African leaders can take charge and fix the

turmoil of the governing body.

Tokyo Sexwale is a South African businessman and a politician and he says sponsors may have too much influence on the game.

He told CNN's Amanda Davies it should be Africa's turn to fix football.

(BEGIN VIDEOCLIP)

TOKYO SEXWALE, FIFA PRESIDENTIAL CANDIDATE: It's time for Africa - there's a song of Shekila (ph) and that's South Africa. It's also time for us to

show that we can provide leadership to FIFA.

Football in Africa is developing, football in Asia is developing, Europe has developed football.

AMANDA DAVIES, SPORTS CORRESPONDENT AND ANCHOR FOR CNN INTERNATIONAL: How much of the blame of the state FIFA is in at the moment needs to be laid at

the door of Sepp Blatter?

SEXWALE: The people who have been arrested, the people who have been suspended and so, these are friends, these are people I have known, these

are not enemies. These are people who are not written on their foreheads "I'm a crook, I'm a trickster."

DAVIES: He's being investigated for criminal mismanagement -

SEXWALE: Yes.

DAVIES: -- if he had been -

SEXWALE: Absolutely.

DAVIES: -- president of any other big business corporate organization, he wouldn't have been allowed to even get to this point.

SEXWALE: I do say that Mr. Blatter is the head of family. The football FIFA football family has got to take responsibility. The investigations

that are being conducted also must - and other people should step forward - and not just be called one after the other by the FBI and so on.

DAVIES: If you were somebody who says you want the good of the game, you want football to be transparent and good, these people have pulled the wool

over your eyes, can you still consider them friends?

SEXWALE: People take off for the hills when somebody's in trouble. I'm not taking that approach. I won't say I didn't know them, I didn't noticed

that Blatter - no, no, -- we know - I know - them, these are friends, these are people that we trusted.

And I'm say they were acting underhandedly, the law is going to take its own course.

(END VIDEOCLIP)

QUEST: Concerns over cable are weighing on media companies and it's a mixed picture for Disney. First a highlight from "Make, Create, Innovate."

(COMMERCIAL BREAK)

[16:51:18] QUEST: Disney shares are recovering from a fall in afterhours trading. A short time ago the House with the Mouse reported earnings for

the latest three months and they came in ahead of expectations.

However revenues failed to meet Wall Street's forecast. Brian Stelter is a senior - our senior media correspondent. Brian, as I look at Disney, I

mean, I remember in the last quarter -

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Yes.

QUEST: -- it was worries about cutting of the cord and cable revenues and all these sort of things that really took their toll on Disney, and with

that created an entire firestorm about other media companies including Time Warner, owners of CNN.

STELTER: Yes, basically Disney led the entire media market south in August. This time it's actually Time Warner leading media stocks down.

Disney had a pretty good quarter here and their stocks' doing OK in afterhours trading.

We saw a big media stock selloff yesterday after Time Warner reduced its profit guidance for 2016. The stock down 4 percent again today. Viacom

also lost 2 percent today.

Really there are continuing to be a lot of fears about cord cutting even though Time Warner said most of the reasons why it was reducing its profit

estimates were related to currency issues and related to plans for new investments.

QUEST: OK now, in terms of Time Warner -

STELTER: Yes.

QUEST: -- well we'll come to them in just a minute. Taught not to talk about one's own company now - well let's just stick with Disney.

STELTER: Sure.

QUEST: When we look underneath Disney, the parks, the studios, --

STELTER: Yes.

QUEST: -- the various television properties, what do you see?

STELTER: Part of the success in the third quarter was due to the parks - due ever-arising theme park attendance that has been a real strong place

for Disney.

The film studio also looking well and of course looking forward to "Star Wars" a couple of months from now, known to be a huge moment for Disney's

film studio.

There is some weakness you can see in the cable unit which is the most important profit engine for Disney. ESPN once again slowly reducing the

number of subscribers.

Still has more than 90 million subscribers - almost everybody in the U.S. has ESPN -

QUEST: Has (inaudible) ESPN, yes.

STELTER: -- but it's slightly less than it used to be which means there is pressure on the affiliate fee growth that these companies have relied on

for many years.

QUEST: With the distribution of revenues from places like - for ESPN and we have our own issues here at Time Warner. You've really got two choices.

STELTER: Yes.

QUEST: You either start being bold and do something or you wait for it to happen inevitably.

STELTER: I see all these media companies making lots of bets, trying to make lots of bold decisions. We can debate if they're bold enough, but

today ESPN struck a deal, Disney struck a deal with Sony to distribute ESPN and Disney Channel through PlayStations - a new streaming service called

Vue.

Time Warner yesterday said CEO Jeff Bewkes (ph) said we're going to make lots of big investments, some in the hundreds of millions of dollars for

technology and for distribution.

These are all these companies basically placing all these bets on the table -

QUEST: Do they know what they're doing?

STELTER: Oh I think these CEOs have learned a lot from the music industry, learned a lot from the newspaper business and they're determined to avoid

those mistakes.

CBS CEO Les Moonves said no matter how TV changes, CBS will be well positioned. And that's what we're hearing from all these major media CEOs.

They're going to avoid the mistakes of the companies we see in the music space and the newspaper space.

And, Richard, I believe they're in a very good position because these companies make so much more money because they are so much more supported

by the customer base. You know, think about the cable homes in the United States - pretty much everybody has cable.

And that continues to be true even though we're seeing small numbers of homes cut the cord.

QUEST: Thank you, sir.

STELTER: Thank you, good to see you.

QUEST: In Europe, markets finished mostly higher. The European Commission autumn forecast predicts moderate growth for the Eurozone. The Commission

says the outlook for growth - global growth - deteriorated considerably in the past six months.

The FTSE fell after the Bank of England suggests rate rises not likely this year or next. This is the inflation forecast or the inflation report that

the Bank of England came out today.

[16:55:03] Now you're going to forgive me because this news just in to us. I'm going to read it. It looks as though Oscar Munoz, the CEO of United

Airlines, who as you will be aware had a heart attack.

He says - it is in a letter that Munoz has just sent to staff saying, "I'm excited to tell you I'm on the road to recovery. My time away will be a

little longer than I would like, but based on discussion with my doctors, I will be back in the first quarter of next year."

"So I look forward to seeing you in 2016 to continue working together to build a great airline."

So Brett continues as the interim, Oscar Munoz returns to the helm of United Airlines in Q1 2016. I will have a "Profitable Moment" (RINGS BELL)

after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's "Profitable Moment." Extraordinary times require remarkable actions that's where the decision to transport the luggage

separately from Sharm El Sheikh to those tourists that are being brought home is deemed to be so necessary.

The problem of course is that it will be some time before there is certainty over what happened. You have the Americans and the British

saying it was a bomb, you have the Russians and the Egyptians saying nothing of the sort, at least not yet.

And as for the poor traveling public, well it's left to us just to make up our own minds. And that's "Quest Means Business" for tonight. I'm Richard

Quest in New York.

Whatever you're up to in the hours ahead, (RINGS BELL) I hope it's profitable. Let's get together tomorrow.

END