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Quest Means Business
Colorado Springs Police Chasing Gunman On The Loose Near Planned Parenthood Clinic; Black Friday Bringing Out The Worst In People; The Significance Of Black Friday and Cyber Monday To Retailers; Three Of China's Top Brokerage Houses Under Investigation; Nestle Investigating Child Labor In Its Thailand Supply Chain. Aired 4-5p ET
Aired November 27, 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, CNN HOST: We begin with breaking news from the U.S. state of Colorado. The police in Colorado Springs are chasing a gunman who's on the
loose either at or near a Planned Parenthood clinic. Now, hospital officials say at least four people have been injured. We don't know all the
circumstances. And we don't know the severity.
The police are saying at least three officers have also been wounded. What is not clear is how many gunmen or shooters there are and if any hostages
are being held or indeed the depths and severity of the situation at the moment.
As you can see, a major, a sizeable, as you would understand, police operation is now under way in Colorado. At CNN, we've spoken to the staff
at stores in the area. They say no one is being let in or out. Employees are being kept at the back of buildings. In the words of one employee, the
situation is described as extremely fluid. And we will obviously be bringing you the latest developments as it develops.
There is a significance, of course, in all of this because Planned Parenthood is very much at the center of a major political controversy in
the United States where the Republican Party and the Republican Congress is trying to use laws to defund or to withdraw federal funds from Planned
Parenthood. And this has become an extremely relevant hot political potato in the political debate. So while we wait for more details on that, we
shall move on.
(END VIDEO CLIP)
QUEST: Tonight, it's the biggest shopping day of the year in the United States. It's called Black Friday, and it has delivered the kind of scenes
of which we've become accustomed to over the years. Quite simply, consumers sort of losing their cool and going crazy. For instance, take a look at
this brawl in Louisville, Kentucky, which was captured on a smartphone.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Does anybody else need a map? To let you know where all our items are.
UNIDENTIFIED FEMALE: I'm ready and I got my fist up if somebody tries to steal something from me.
(END VIDEO CLIP)
QUEST: Good lord. I think is what classed as a bit of argy bargy at the sales this year and this may be the year to start questioning the hype
about this crazy day of retail heaven.
Black Friday is really becoming a lot more like black November because we're seeing major retailers offering price discounts throughout the entire
month. I'll show you some of the examples.
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QUEST: Target has been offering ten days of discounts from November 22nd to December the 1st. It includes deals like Black Friday-like deals, but they
took place on the 23rd and the 25th.
Amazon had Black Friday deals a whole week early, beginning on November the 20th. National Federation Retail survey says shoppers didn't even wait
until November to start buying holiday presents. 40 percent started buying their holiday gifts before Halloween.
And you can see why when you look at the situation facing retailers for whom it's been a very difficult year so far.
Wal-Mart is down some 30 percent on year to date. Target, as the share price is down some 3 percent. Macy's is down nearly 40 percent. Sears down
33 percent. Best Buy down 18 percent. Amazon -- and this is the significance here -- Amazon is up a soaring 117 percent.
So bricks and mortar, bricks and mortar are down. Even bricks and mortar who have strong online presence, amazon sharply up.
Paul la Monica is CNN's money digital correspondent. He joins me now from New York.
(END VIDEO CLIP)
QUEST: Paul, this -- we'll talk about the individual retailers in a moment, but the breakdown of what we've seen, first of all, give me the
significance of Black Monday to the retailers.
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yeah, Black Friday and Cyber Monday is very important. It is when most retailers do start making
money in the fourth quarter of the year, the holidays always very significant for them. But as you pointed out Richard, with those stocks,
Amazon has blown away everyone in retail.
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MONICA: They really have everyone on their heels. Amazon now has a market value of about $315 billion. So it's worth more than those other five
retailers that you showed combined by a wide margin. It really is stunning just how so many people now are choosing to buy online and when they do,
it's more often than not Amazon than any of the other traditional retailers, even though all of them have invested heavily in their own
digital operations. They just haven't been able to catch up to Amazon yet.
(END VIDEO CLIP)
[16:05:10]
QUEST: That's the significant point I just want to focus on because every one of those retailers has large-scale online presence, particularly, for
example, Best Buy and Macy's. But Amazon has wormed its way into the psyche as being the online store.
MONICA: Exactly. And it's even easier now, now that people have smartphones and other mobile devices that they can use to shop, and shopping on a phone
is something that has become fairly common. You can go to an actual retail store and comparison shop and then go and look on Amazon and see if it's
cheaper there and buy. A lot of people have said somewhat derogatory comments about big brick and mortar retailers that they're nothing more now
than just the showrooms of Amazon, and it's really amazing just what Amazon has done to this industry.
QUEST: Paul la Monica in New York joining us on the Black Friday -- I got my Black Fridays and my Black Mondays and my Cyber Mondays what confused,
but the gist remains the same. That's when the shopping takes place.
(Inaudible) Black Friday sales we were talking there about Macy's, and it had a lackluster day on the stock market.
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QUEST: Macy's shares fell more than 1 percent during the session. And the chief executive, Terry Lundgren, has been speaking to CNNs Cristina Alesci.
He told her customers turned out in their droves when the doors opened at the flagship store in New York on Thanksgiving night.
TERRY LUNDREN, CHIEF EXECUTIVE MACYS: So we opened the doors at 6:00 last night as we had last year and the year before. And it was a bit of a
madhouse. We had -- I stood at the front door for 21 minutes, never saw a break of more than a foot between customers coming in. And it was great
because, you know, we just love to see people, you know, saying it's the start of the season. Here we go. We want to shop today. Glad you're open.
Boom. And me and my volunteers who volunteered to work last night at Macy's were all here ready to go and we had a great night.
CRISTINA ALESCI, CNN CORRESPONDENT: But this into context for most people, how important is Black Friday to stores like Macy's?
LUNDGREN: It's extremely important. You know the business started, like I said, 6:00 o'clock. If you take 6:00 o'clock last night to 6:00 o'clock
tonight, that period of time is going to clearly be the largest volume day of the entire year. And it really gets people in the mood.
So we were talking earlier how, you know, it's been a very warm third quarter, warm November. I think, it's like, 251 years since it's been this
warm. Some staggering number. And customers typically don't buy coats and boots and down comforters when it's warm. Last night they came out. They
bought because it's the start of the season. So they said hey, it's time. Here we go.
ALESCI: Is that why last quarter wasn't as strong as you would have liked? Is it the warm weather? Is it currency? What's causing it?
LUNDGREN: Well, you hit two of the very big issues. Clearly the warm weather is a big factor. But currency, too, the strength of the dollar is
definitely preventing consumers from coming from Europe, coming from Brazil, coming from other countries to shop here. And when they do get
here, if they're here, they're really not spending because they're seeing how much more expensive it is to buy against the U.S Dollar.
ALESCI: Let's talk about the U.S. consumer. What is the state of the U.S. consumer? Because we saw the U.S. consumer saving a lot more than probably
you would have liked to see.
LUNDGREN: You know actually, I like the idea that they're saving. What I don't love is that they're buying automobiles. And they're buying home
improvement, spending money in health care. I would love them to say okay, I've got a car now. My home's got great new added bedroom. It's time for me
to fill it up with stuff from Macy's including my closet. So I'm waiting for that shift. They've got money. To your point, they've got savings, more
so than last year. I'm just ready for them to let it go and spend it with us.
ALESCI: And I've got to ask you just because I cover retail for CNN, and there has been a certain degree of anti-Black Friday sentiment from other
retailers like REI which shut down on Black Friday and is encouraging its employees to go outside and paying people to take the day off. I mean, how
do you think -- does that play into your decision making at all?
LUNDGREN: You know definitely what you just described does not. What plays into my decision 100 percent of the time is my customer. And I look at -
you know I consider myself the chief customer officer. And my customer clearly wanted Macy's to be open last night. I mean It's not even a
question. They clearly wanted Macy's to be open last night. And so we had our employees volunteer because we hired 85,000 additional people for
November and December alone at our company. So we could say would you like to work on Thanksgiving or not? And our core employees got to choose.
The reality is, a lot of our core employees wanted to work so they could have Black Friday off. So that decision was a good decision, it was the
right decision, particularly if your competitors are open.
(END VIDEO CLIP)
[16:10:03]
QUEST: Chief executive of Macy's talking to Cristina Alesci as Black Friday wins its merry way through the ringing tills.
Chinese stocks tumbled as it emerged that the government cracked down on brokerage firm has now widened.
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QUEST: Pacific Security is China's largest brokerage admitted that it was now being investigated by the Securities Watchdog.
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QUEST: Another firm has also made a similar admission. Take a look at the numbers.
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QUEST: And the Shanghai composite was off by 5.5 percent. The main index in Shenzhen was off 6 percent. And in Hong Kong, it was the Hong Kong Hang
Seng, and that fell the best part of nearly 2 percent.
(END VIDEO CLIP)
QUEST: The authorities have been taking a long, hard look at the securities industry after share prices fell very sharply in the summer. And with that
share price fall, of course the rest of the world experienced extreme volatility. The news that the crackdown is not over has spooked investors.
CNN's Asia-Pacific editor Andrew Stevens has sent us this dispatch from Hong Kong.
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ANDREW STEVENS, CNN ASIA-PACIFIC EDITOR: Just when it looked like the volatility in China's battered stock market was easing, the government has
thrown another spanner into the works. Three of the country's top brokerage houses announcing in the past 24 hours that they're under investigation
from the government watchdog, the CSRC. No specific reason has been given, but that statement alone was enough to send the price of the top brokerage
CITIC Securities down by the maximum allowable 10 percent. And the overall Shanghai composite down by 5.5 percent. And so ended a period of relative
calm that has seen the composite climb 20 percent in recent months.
This is not so much a new development as the latest twist in an old story. It began in the summer when authorities did virtually everything in their
power to stop a collapse of share prices in Shanghai. The intervention did work. The market fall ended after a rout, though, that saw more than 30
percent wiped off the Shanghai composite value. And slowly, things have been getting back to normal.
Beijing has been blaming, "malicious short sellers," at least partly, for that summer stock market meltdown. And this investigation shows that
they're still looking to people they think may have been involved. But market watchers are saying that this latest move could have a negative
effect by breaking this relative calm and raising fears once again among investors that there is still more government action in the pipeline. In
other words, is the fear returning to the China markets.
Andrew Stevens, CNN, Hong Kong.
(END VIDEO CLIP)
QUEST: Now, we also had disappointing economic data from China itself where profits from industrial companies fell more than 4 percent in October. It
was the fifth down month in a row.
(BEGIN VIDEO CLIP)
QUEST: And mining shares were lower in Europe. The European markets, have a look at the numbers, all the major markets except the Zurich SMI which eked
out a small gain.
(END VIDEO CLIP)
QUEST: An update on some breaking news to bring you. Police in Colorado Springs are chasing a gunman on the loose either at or near a Planned
Parenthood clinic.
(BEGIN VIDEO CLIP)
QUEST: Hospital officials say at least four people have been injured. And according to the FBI, the FBI's S.W.A.T. and evidence recovery teams are
now responding to the situation in Colorado Springs. It's not clear how many shooters that there are and if hostages are being held. We'll bring
you more details of that when we get them, of course. We have teams on the way and covering the story.
(END VIDEO CLIP)
QUEST: Coming up next on Quest Means Business --
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MAGDI BATATO, HEAD OF OPERATIONS, NESTLE: I think this is unacceptable. And that's a real emotional issue.
QUEST: I think it's unacceptable, says the Vice President of Nestle. He's talking about the abuse of workers uncovered in the company's supply chain
in Thailand. You'll hear him defend the company after the break. Its Quest Means Business.
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[16:16:14]
QUEST: The head of operations at Nestle has told CNN child labor and human rights abuses have no place in the company's supply chain. It follows an
investigation ordered by Nestle itself into reports of abusive practices amongst its seafood suppliers in Thailand. Now, these are some of the
findings that Nestle came up with.
(BEGIN VIDEO CLIP)
QUEST: The workers were subjected to, in their words, deceptive recruitment practices. The pay was often withheld. They suffered, in their words,
harassment and physical abuse. And their working conditions were dangerous.
(END VIDEO CLIP)
QUEST: Nestle's head of operations, Magdi Batato, spoke to Isa Soares and gave his reaction to the report.
(BEGIN VIDEO CLIP)
BATATO: We found child labor in our supply chain, and this is something that we have been looking at actually for quite some time. Already three
years ago we have commissioned a study to look at sustainable practices in the value chain in Thailand. And then finally, we commissioned the
nongovernmental organization, (inaudible) to look at more details, what's happening on the vessels. And the report has been made public.
So yes, we found instances of people being kept on the vessels longer than what we find is appropriate. And my main message, Isa, is that, you know,
child labor and human rights abuses have absolutely no place in our supply chain.
ISA SOARES, CNN CORRESPONDENT: Let's talk --
BATATO: And that's loud and clear.
SOARES: Go ahead.
BATATO: And that's why we wanted to commission the study, to kind of have in all transparency what's going on.
SOARES: OK, let's talk a bit more about what you've covered. Because I know you've talked about child labor, but you've also talked -- the report also
uncovered workers living in inhumane conditions, at times even being sold to boat captains.
Talk to us about where the majority of these laborers come from and a bit what they said to (inaudible) about their experiences.
BATATO: Well, look, it's an emotional issue, you though, because I'm a father of two that were not long ago children before they moved into young
adulthood. So yes, we take these things very seriously.
They - basically they are economic refugees. They come from countries like Cambodia and they seek employment. And they come into Thailand, and they
end up into the fish value chain. So that is not something specific to Nestle. That is in this type of value chain.
And the report goes into the details and, you know shows what's going on. Shows the overtime problem, shows the fact that these workers are sometimes
retained and they don't feel free to quit and all those types of things which are very close to our heart as a company. And that's why to solve it,
first it's about being transparent. Because of the fact that we do not accept it, we need to understand what it is, be fully transparent. And then
as you know with the report, we have a ten-point action plan to rid our supply chain from any form of child laborer child abuse.
SOARES: Okay. So you're being transparent. You have this report that clearly shows Thai food suppliers are engaging in abusive practices. Talk
us through that ten-point plan. What exactly are you doing to clean up the supply chain?
[16:20:08]
BATATO: Yes, you know, we use our strong points. We use what we do in our own factories and distribution centers. We have a sort of equivalent of a
whistle blowing system like we have in our own side where we kind of have a system there at the docking places where the employees -- I mean the
workers are come and, you know, ask questions, to raise awareness.
We also use -- we will put in place a sort of school boat where we will teach the good practices and educate also the workers on what a good
practice is. So that's, again, inspired by what we do usually in the other parts of the chain that we fully control. So we make use of our strong
points to be able to help get rid of that. And also we can't do it on our own. That's why we work with nongovernmental organizations but also with
the government, we work with other companies, and every willing soul or company that help us. So we cannot be alone and we are not alone,
hopefully, and they idea is to improve the supply chain.
(END VIDEO CLIP)
QUEST: That's the head of the Vice President of Nestle talking to Isa Soares.
A grieving Paris will find its way back to normal soon.
(BEGIN VIDEO CLIP)
QUEST: That's what the top travel and tourism expert has been telling CNN. We'll talk about the reasons for optimism that comes out of such sadness
and tragedy. Quest Means Business.
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(COMMERCIAL BREAK)
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QUEST: Two weeks after the terrorist attacks in Paris and the city paused to remember.
The French President Francois Hollande joined thousands in central Paris honoring the 130 victims. And as Paris grieves, well, business is also
suffering. The tourism numbers are sharply lower.
(END VIDEO CLIP)
QUEST: There have been a huge number of canceled trips. Which have jumped 21 percent compared to the same time last year. And there are numerous
wider challenges for the tourism industry.
(BEGIN VIDEO CLIP)
QUEST: Take, for example, the terror attacks in Tunisia, in Egypt, in Lebanon, Kenya, France, and Mali. And that's the terror attacks. Add in
natural disasters which hit Nepal and the Philippines. And then, of course, West Africa had to cope with Ebola, South Korea had (inaudible).
(END VIDEO CLIP)
[16:25:12]
QUEST: The head of the world travel and tourism council said Paris will recover and he put the time frame three to six months.
David Scowsill spoke to Isa, and she asked him why he was so optimistic about Paris and the wider industry in 2016.
(BEGIN VIDEO CLIP)
DAVID SCOWSILL, HEAD WORLD TRAVEL AND TOURISM COUNCIL: The context is the travel industry continues to grow 3 percent to 4 percent every year. If you
look back over the last 25 years, there have been three really catastrophic incidents. The first Iraq war and recession, then you had SARS and then the
last one was 9/11.
Now, what we're seeing at the moment is not one of those big global catastrophes where people stop traveling across the board. These are
localized very specific market situations. But generally, the travel industry is still growing. It will grow 3.5 percent this year generating
something like $7.8 trillion of income. It's a good story overall.
SOARES: Clearly very resilient. What are the growth areas?
SCOWSILL: The growth is mainly coming around Asia. It's growing everywhere, but what we're dealing with right now are specific shocks to
the system, and the shocks come in different formats. It could be political turmoil, it could be natural disasters or in this case it could terrorism.
And each of these terrorist attacks are different and recover in a different time frame.
When I look at what's been happening in Paris, these dreadful atrocities that have been committed there, it's very similar to what happened in
Madrid with the bombings (inaudible) in 2004 and also the 7-7 bombings in London. And those were city center bombings not specifically aimed at
tourism. And therefore those cities recovered very fast. And I expect Paris to do the same thing. As long as there's not another incident there, within
three to six months, Paris will be back to normal again.
SOARES: But these shocks to the systems, David, they seem to be happening with more frequency. At least they're closer together. How worried should
consumers be? I mean, how worried are you when you look at what's happening at the moment whether it was Tunisia, Egypt, Paris?
SCOWSILL: This is a global fight against terrorism that breaks out in different countries very sporadically. Now, this year it's been
extraordinary. There have been so many of them. And if you take Egypt as an example, again, Egypt historically, they had a terrorist attack in Luxor,
another one in in Sharm el Sheikh, then they hit the political turmoil with the political changes and now they've had the latest shock which is really
severe for them.
They have about 10 million visitors a year. Two and a half million of those are Russians and it was a Russian jet that was hit in this particular
incident. So in that situation, Egypt, which has recovered very fast in the past, this time it's going to take longer to recover. And Tunisia is in a
very similar situation.
SOARES: And then you've got the concerns over the plane in Russia and the many geopolitical stories that are coming out between Turkey and Russia as
well. Do you - I mean when I was looking at some of the airline stocks and also the travel stocks, they've been really hammered this year. Is that
because consumers are just not traveling? They're worried? Or is that more to do with U.S. Travel advisory?
SCOWSILL: No, I think it's more so -- this week it's been specifically down to the U.S. Travel advisory. And governments in these situations take a
cautious approach. So U.S. Travel Advisory came out on Monday which is a warning to U.S. nationals to be careful when they're traveling around the
world. It's just a global message, no specific geographic focus. But it's not stopping people traveling this week. It's Thanksgiving holiday weekend.
But you're right. On Tuesday, some of the stock prices of travel companies came down two or three percentage points. Because the analysts assumed
there was going to be an impact, but we're not seeing one.
(END VIDEO CLIP)
QUEST: David Scowsill talking to Isa Soares. France steps up efforts to combat extremism.
(BEGIN VIDEO CLIP)
QUEST: A counterterrorism source tells CNN airport staff are coming under extra scrutiny. We'll have that story from Paris after the break.
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[16:32:13] QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in just a moment when France launches an investigation into
Islamist radicalization amongst airport staff.
And we speak to the head of the company that unearthed a diamond the size of a tennis ball. But before all of that, this is CNN and on this network
the news always comes first.
Police in Colorado Springs tells CNN that officers are in a standoff with a gunman at a Planned Parenthood center. Officials say six people have been
transported to local hospitals. Police on the scene say at least three officers have been hurt.
The Colorado Springs Police are describing the situation as unstable.
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MALE REPORTER: What kind of gun does he have, do we know?
LIEUTENANT CATHERINE BUCKLEY, COLORADO SPRINGS POLICE: The information we received initially is that it was a long gun. We don't know what type or
what capacity or anything at this point.
MALE REPORTER: Is this connected to your Planned Parenthood or do we not know yet?
FEMALE POLICE OFFICER: We're not sure what the connection is to Planned Parenthood but that was the original address that we received for the call
for service.
MALE REPORTER: Is this shooter contained inside the building?
BUCKLEY: We can't confirm where the shooter is at, at this point. (AUDIO GAP). Where he had them earlier, but we're still trying to confirm where
the shooter is actually at, at this point. That why this is still very much an active situation.
FEMALE REPORTER: How many businesses were - did the shootings occur in?
BUCKLEY: We're still - we're not even into our investigative phase at this point. The phase we're into right now is that we are trying to provide
emergency medical services to anyone that was injured and we're trying to may sure that we have contained or that we can find the shooter.
(END VIDEO CLIP)
QUEST: Russia has begun economic retaliation against Turkey over the shooting down of this Russian warplane near the Syrian border.
Amongst the measures, Moscow is suspending its visa-free system for Turks and are curbing some trade. Turkey's president says Russia is playing with
fire.
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RECEP TAYYIP ERDOGAN, TURKISH PRESIDENT, VIA INTERPRETER: Turkey did not shoot down the Russian plane on purpose. This was only an automatic
reaction to a border breach. This is an exercise of the rules of engagement.
The nationality of these planes who were flying towards our border were unknown despite the warnings. It is impossible to know this at the time.
(END VIDEO CLIP)
QUEST: The organizers of a march in Northern Nigeria say at least 21 people were killed and dozens injured in a suicide attack. The march is a ritual
observed by Shiite Muslims in Kano State where the majority are Sunnis. The Islamic group Boko Haram has carried out attacks in the region before.
[16:35:00] President Hollande says France will work to destroy what he calls the army of fanatics behind the Paris attacks two weeks ago. The
French president was speaking at the memorial service for the 130 people who were killed.
The Ukrainian energy minister says Russia has begun to restrict coal supplies to Ukraine. Earlier this week, his Russian counterpart warned that
this might happen.He said Ukraine has refused to restore power lines to Crimea, an area annexed by Russia last year. Meanwhile, the Ukrainian
minister says his country has enough coal to last as much as 50 days.
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VOLODYMYR DEMCHSHYN, UKRAINIAN ENERGY MINISTER, VIA INTERPRETER: At the moment, more than 16.4 billion cubic meters of gas are in Ukrainian's
storage.This is in general enough including supplies from the European Union to pass this heating season. That is why dependence on the Russian
Federation for gas supplies is absolutely absent at the moment. We have enough gas. That is why we'll ask you to lower the degree of discussions,
the situation is under control.
(END VIDEO CLIP)
QUEST: French intelligence services are concerned that a number of public transport workers may have become involved in Islamic extremism. A source
says they're monitoring employers at Charles de Gaulle Airport near Paris. And they're also looking at private shipping companies and on French
railways. The head of the police at Charles de Gaulle tells CNN about the checks that
are now being carried out on staff.
(BEGIN VIDEO CLIP)
PHILIPPE RIFFFAUT (ph), HEAD OF POLICE, CHARLES DE GAULLE AIRPORT: We're going to check the 80,000 people who currently have access to air side. We
will conduct a police investigation on them. We will also take in consideration whether or not some individuals refused to work with women.
We've seen this happen before and it is a sign of radicalization.
(END VIDEO CLIP)
QUEST: CNN's Martin Savidge joins me now from Paris. Martin, the radicalization or the extremism of those working in the public service
transport area - now obviously it takes on a new significance because of Paris, but also of Sharm El Sheikh, doesn't it?
MARTIN SAVIDGE, CNN CORRESPONDENT: Yes it does. And, you know we have seen with the - what happened with the Russian airliner there where someone with
the right access to an aircraft can do. And this is of course not just a concern for those why fly but of course here in Europe or anyone who may
take a train or for anyone that may ride a bus or even for, say, regular cargo that is transmitted by a regular train. In other words, you could
cause some sort of derailment of hazardous chemicals.
There are any number of nightmare scenarios that you can begin to break out as a result of what happened.
And that's all going to be traced back to the fact that one of the attackers in the Paris attack used to be a bus driver. Now, France has been
concerned about this possible infiltration. According to documents that CNN has received dating all the way back to 2004, certainly at Charles de
Gaulle. But then today you heard the experts there addressing this problem, and they mentioned that 86,000 people apparently have access to the air
ramps out there and now they're going to be checking all them.
And they've already revealed that since January, some 57 people at the airport have had their clearance passes revoked because of concerns that
somehow they've been radicalized. And then on top of that, the overall transportation system - it's being reported to CNN that since 2012, 100 employees have traveled to Syria. That
is not clearly a good thing. So you could see why they are very troubled here in France.
QUEST: But at the moment, the suggestion of radicalization or involving themselves in Islamist extremism -- they're not able, if you like, to put
any numbers on it besides those you referred to. They're not able to give an idea of whether this is a crisis situation.
SAVIDGE: Correct. I mean, clearly if this problem can be watched all the way back to 2004, as far as we know, there has not been any kind of
aviation disaster triggered from that. So that would seem to indicate that this is a concern but it isn't
necessarily something that is being acted upon.
However that said, once you bring it to light and say that there is this possibility, I mean, Charles de Gaulle as you well know is a hub for many
international airlines. So it isn't just a concern for the people of Europe, the people of France, it is for many airlines that go throughout
the world and it clearly would not be limited to just airports in France. You could repeat this concern across many airports worldwide.
QUEST: And that really is the point is about this, isn't it, Martin? We've already had CEOs of airlines saying they're worried about the vulnerability
of certain airports.
[16:40:04] If you then factor in network transport infrastructure, we really don't know how deep this goes.
SAVIDGE: No, we don't. And really how do you test someone for something like this? I mean, in many countries, the United States especially, you
would start to run across problems with when it comes to civil freedoms, freedom of religion, yet employment rights that people have, how do you
test somebody for what is going on in their head or their intentions that they may have? I don't know. It could be a real nightmare for security
experts.
QUEST: Martin, thank you for bringing that to us. Martin Savidge joining us from Paris.
The Pope is calling on governments to tackle radicalization by making sure there's an equal distribution of wealth. The Pope's been speaking during an
African tour and you'll hear the details after the break. "Quest Means Business." (RINGS BELL).
(COMMERCIAL BREAK)
QUEST: Corruption is something that eats you inside like sugar. "It's sweet, we like it, it's easy and then we end up sick and poor." Those are
the words of Pope Francis as he continues his African tour. The Pope arrived on Friday in Uganda, and before that, he took his message
of economic equality to a Kenyan shantytown as Robyn Kriel explains.
(BEGIN VIDEO CLIP)
ROBYN KRIEL, CNN INTERNATIONAL CORRESPONDENT: It's a far cry from the covered streets of the Vatican, but Pope Francis seems just as at ease. For
the Catholic Church having a visible on-the-ground approach to places like this Kenyan slum appears to be this pope's priority. From the slum, a no-
holds dialogue with Kenyan youth at Nairobi's Kasarani Stadium. That was more rock and roll than pomp and circumstance.
The Pope, unscripted, and outspoken didn't shy away from any issues.
POPE FRANCIS, BISHOP OF ROME, VIA INTERPRETER: Why do divisions, wars and death occur? Fanaticism and divisions among young people? Why is there that
desire to destroy?
KRIEL: To combat youth radicalization, Pope Francis instructed Kenya's youth to pursue education and employment.
[16:45:03] On corruption, a scathing critique of both politicians and the Vatican itself.
POPE FRANCIS, VIA INTERPRETER: Every time we put money in our pockets, we destroy our hearts and our countries.
Kenyan youth were enthusiastic about his thoughts on the controversial issue of tribalism.
UNIDENTIFIED MALE: One of his quests (ph) are for unity, he told us to stand and hold hands together and remain united like that as a show of
unity, as a show of the need to become united, not to be divided by birth (ph) line or by tribalism because we come from different tribes.
But our faith should unite us.
KRIEL: And indeed Kenya did face issues back in 2007/2008 with post- election violence where around 1,000 people were killed. He also said that corruption was like sugar and that we cannot have too much sugar, otherwise
our country will become diabetic. A fantastic point there. What did you think about what he said about corruption?
UNIDENTIFIED MALE: Well definitely corruption is the killer in our country right now. It's the beginning of every problem we are facing.
KRIEL: Before leaving Kenya for Uganda, Pope Francis had one more important albeit impromptu meeting. Orphans from Thomas Barnardo's House stood for
hours singing outside the Vatican embassy, waiting and hopeful. The Pope took a breather from his well-timed schedule to say hello and goodbye. A
tiny gesture, but for these little girls, unforgettable. Pope Francis will spend two full days in Uganda and is the third pontiff to visit the East
African nation. He heads to the Central African Republic on Monday.
Robyn Kriel, CNN Nairobi, Kenya.
(END VIDEO CLIP)
QUEST: (Inaudible). Now six people have been injured in Colorado Springs in Colorado where a gunman is on the loose.
Police say four officers have been hurt. The incident is taking place at a clinic of Planned Parenthood where the officers say the scene that they are
still encountering gunfire. In a moment we'll have more "Quest Means Business" after you've enjoyed a snippet - a chance to think, a chance to
ponder. In other words, "Make, Create Innovate."
(COMMERCIAL BREAK)
[16:50:13] QUEST: Another beautiful evening here in Abu Dhabi as the Emirate gets ready for the Formula 1 this weekend which takes place on
Sunday, the last F1 of the season. Diamond is one of the hardest stones on earth, and no one's been found that's also very hard if not impossible to value at the moment. The mining
company Lucara is struggling to put a price tag on the stone it unearthed a week or so ago.
Look at the size of that thing. Look at the size! It's the second largest diamond found in the last century. It's simply too big and at the moment
you can't put a price on it until it's been actual valued by the market. The CEO Lucara Diamond is William Lamb. He joins me via Skype from Vancouver in Western Canada. Mr. Lamb, first of all we'll talk about why
it's difficult to value at the moment, but explain is the goal here that it remains as one diamond eventually cut and polished or does it get broken
into many diamonds, smaller diamonds?
WILLIAM LAMB, CEO, LUCARA DIAMOND: And, sir, I guess that's got to do with sort of who the final buyer will be of the stone. If we're looking at
somebody who's looking to acquire it specifically for the historical value, then it might actually be kept as it is.
But generally I you look at what people see from a diamond, it's what you can create. And that piece of beautiful jewelry, that single stone that
will eventually be produced from that stone, that might actually be somebody else's objective.
If I speak to people in the diamond sector, they will normally want to see the polished stone. But I think because of the historical significance of
this and when we talk about -
QUEST: Right.
LAMB: -- the value, that's going to play into it. That's going to bring a different set of people into the play when we look to sell it.
QUEST: Ah, but the issue here is why is it so difficult to value? I have seen numbers anywhere from $35 million to $75 million in the press for this
and I know that you can't value it until the sort of the traders and the dealers have given you their value, but you must have a feeling in your
water of how much it's worth.
LAMB: I guess the reason why we can't value it at this stage is the technology which we have - and Lucara has been very fortunate over the past
three years. We've recovered a number of significant stones - 200, 300- carat stones. And we have the technology to be able to do a full laser volumetric scan of those ones.
But this 1,000-carat stone which is slightly smaller than a tennis ball actually doesn't fit into that.
So we have been in contact with people who make the types of machines seeing if there is a larger unit, and currently that's not available.
So we're looking at alternative technologies to actually do our volumetric scan and the farther that they can be loaded into the program which will
look at the quality of the stone, potentially look inside the stone to see what the final yield will be.
QUEST: And what is the name of this stone? Now at some point - I mean besides the mine from where it came - at some point somebody will want to
give it the sort of grand name from which it can be beautifully shown.
LAMB: And - we haven't - we were -- obviously internally around management we've looked at and debated what a potential name will be. But for us this
is not just a significant stone for Lucara, but it's a significant stone for Botswana. This is the largest diamond ever recovered in Botswana and
they've got a history of now 40 plus years - 42, 43 years - of diamond mining in country.
So this is very significant for them, too. And we want to make sure that the stakeholders, actually the people of Botswana, the governor of Botswana
has something to say in how we actually name the stone. So we've already been in discussion with them and we're looking at putting a program in place where we can actually use the people of Botswana to
choose the name.
QUEST: Briefly, sir, briefly, give me your gut reaction when you were told what they had found and how big it was.
LAMB: So, I guess there's always a stunned silence. And when I get a call from the diamond mine site at 1:28 a.m., it's either good news or it's bad
news and you obviously hope that it's the other one. But when our chief operating officer Paul Day said, "Are you sitting down?" I take that as being a sign of good news. And when you expect somebody to
say we recovered a large stone -
QUEST: Right.
LAMB: -- because of history, we look at stones which are maybe 500, 600. But when he uttered the words "one thousand," that already means you don't
hear the rest of the word.
[16:55:06] Your mind is already racing about something larger than a thousand carats.
QUEST: (LAUGHTER).
LAMB: And it was a bit of stunned silence to start off with and then we start to think about, well what does it look like? Is it broken? Are they -
what is the color?
QUEST: All right.
LAMB: Is it included? All of that is going to play into how easy it's going to be to sell and just how magnificent the stone really is.
QUEST: One thousand carats, sir, congratulations. I'm sure there's many a person who wishes to have their hands on it tonight. We will have a
"Profitable Moment" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's very "Profitable Moment." We brought you two stories of interest about retailing. The Black Friday of course where people are out
shopping spending small fortunes on stuff that they probably don't even need. And that famous 1,000-carat diamond that has been found in Botswana
that they can't even put a value on, it's simply so large. Two different types of retailing. I wonder which one you wish you were buying this
holiday season. That diamond could be worth well in excess of $50 to 60 million. They'll find out once they finally manage to see what it's really
made of.
And that's "Quest Means Business" for tonight. I'm Richard Quest in Abu Dhabi. Whatever you're up to in the hours ahead, (RINGS BELL) hope it's
profitable. Brianna Keilar now picks up with the latest on the shootings in Colorado as we join my colleagues for "The Situation Room."
This is CNN.
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