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Quest Means Business
Santa Claus Rally; Manchester City Gets Massive New Investment; Interview with Nigeria's Environment Minister. Aired 4-5p ET
Aired December 01, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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MAGGIE LAKE, HOST: The Santa rally is off to the races on Wall Street. It's Tuesday, the 1st of December.
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LAKE: Tonight a blue moon rising in China, Manchester City gets a massive new investment.
Stop terrorism by tackling climate change, Nigeria's environment minister tells me the two issues go hand in hand.
And cable cutting of a different kind. Apple could kill the humble head phone jack.
I'm, Maggie Lake, this is Quest Means Business.
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LAKE: It is home to one of the fiercest rivalries in English football. Tonight it is the blue half of Manchester that has won a big new investment
from China.
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LAKE: The group that owns Manchester city said Chinese investors will pay $400 million for a minority stake. It is about the same price that
(inaudible) from Abu Dhabi paid for the entire club back in 2008.
It's only a few weeks since Chinese President, Xi Jing Ping was in Manchester during his state visit to Britain, posing for a selfie with
Prime Minister Cameron and City's top striker, Sergio Aguero.
Now the Chinese investors are buying into a global empire. City Football group owns clubs in Manchester, New York, Melbourne and Yokohama.
The chairman of City Football Group says China is the next key market for the group.
Khakdoon Al Mubarak spoke exclusively to our John Defterios.
KHAKDOON AL MUBARAK, CHAIRMAN CITY FOOTBALL GROUP: This has been a strategy in terms of global investment for football through City Football Group that
we've been pursuing for years.
China is the next obviously very important market to be involved in. Having the right partner in China is critical. And I think what we achieved
through this transaction is bringing in a quality partner into City Football Group. A strong partner in China that will invest with us in the
business of a growing city football group and allow us I think a very important advantage in playing within the Chinese market. Because China is
the future and City Football Group will be involved in china.
JOHN DEFTERIOS, CNN CORRESPONDENT: It took months to secure this transaction and it happened very shortly after the visit of President Xi
Jing Ping, to the U.K. and going to Man City to catch a football match. Was that instrumental for everybody to see the bigger picture of the potential
here on the partnership?
MUBARAK: We've been working on China for years and this transaction particularly has been in negotiations for months. So I think that was a
nice visit for sure. We were very proud of the visit of the Prime Minister of the U.K. and President Xi to Manchester City Football Club, but that
this transaction particularly has been worked on before that visit.
DEFTERIOS: Many were wondering, why you were building a global plan for football. So if you look at it from a business standpoint building a
global platform going to New York, to Australia, to Japan and now to China, is this affirmation with the valuation that indeed you have a bigger
picture that is going to work?
MUBARAK: Absolutely. I think we have defined the strategy. We've executed on the strategy over the last couple of years and now we are showing how
the strategy has been valued by other investors.
DEFTERIOS: And this includes even includes an academy in China. So there's potential here to have almost a training ground for the Chinese students of
football.
MUBARAK: There is a lot of potential in China across the board. And I firmly believe in football in China long-term. And this is now the
beginning of a journey for us into China.
(END VIDEO CLIP)
LAKE: Now as I mentioned earlier, Manchester City is one half of a long standing football rivalry with Manchester United of course on the other
side. The legendary manager of United, Alex Ferguson famously dismissed City as noisy neighbors not long after Sheikh Mansour bought the club in
2008. A lot has changed. The Chinese investment values the club at $3 billion. That equals United's market cap on the New York stock exchange.
They are among the world's richest sport clubs. But their financial backgrounds are different. American owners took out a lot of debt to buy
United and later went public listing its shares in New York. Meanwhile money was no issues. Its mega rich owners from Abu Dhabi have spent a
fortune on transfer and player wager.
The two clubs have both enjoyed success on the pitch since the City take over. United won three English Premier League titles and City won too.
Simon Cooper is columnist with the Financial Times and Co-author of the book, Soccernomics. He joins us now from Paris.
Thanks so much for being with us, Simon. We heard a little bit in that interview of John about what City Football Group is doing. Or what their
intention - or what do the Chinese get out of this. Why make the investment from their side?
SIMON KUPER, COLUMNIST, FINANCIAL TIMES: Well for a start English football clubs are becoming profitable because they used to spend every penny they
got on player wages.
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KUPER: They've became much better at controlling costs. And secondly you know the market for English football is the world countries like China the
U.S. Indonesia are just switching on. There's huge amounts of money to be earned there.
[16:05:04]
KUPER: But also you've got to think of China's political strategy to host a world cup, to create a much better national football team than they have,
currently it's a very sorry team. And so it's a way to please the Presidents as well. Who he is a soccer fan himself and is very committed to
making China better at football.
So getting some of Manchester City's know how could help Chinese football, that's plausible thinking.
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LAKE: Yes, and looking back at the selfie now, it was foreshadowing perhaps we all should have been less surprised when this deal was announced. Simon,
does it matter? Somebody pointing out, you know listen, United is in there already, they've built up this brand loyalty in China. The same with
Liverpool. Is there room for everyone or do some clubs have a first mover advantage because they have been there for longer?
KUPER: I think if you are moving in China now, you are a first mover. Because Chinese football fans have had very little time to sample English
football. Until recently it was on a small cable channel, now its back on State T.V.
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KUPER: So you have hundreds of millions of potential viewers. This is a country that's only beginning to turn onto English football. And so if you
are a winning team as Manchester City has been, you can be there sort of at the birth of China's involvement in European football.
LAKE: We just were joking. You immediately do make the comparisons between City and United because it has been such a storied rivalry
(END VIDEO CLIP)
LAKE: Two very different approaches on how to grow the brand. Do you think that City Football Group is smarter in the way they are going about it by
not going public and not having to deal with some of those pressures?
KUPER: Well I mean they have completely different aims. Manchester United is run by the glazers who see football as a business. They just want to
make profits out of Manchester United, and they've done that very well. They've taken money out of the club, and therefore weakened the team.
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KUPER: Whereas Manchester City's owners until recently I think saw football as something you put money into and it makes you famous and it
makes your country, Abu Dhabi where they come from known around the world. And so football is really a kind of marketing device for the Manchester
City owners.
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KUPER: Only very recently has City become profitable. Probably a surprise to the owners, and now they're actually attracting investment and it turns
out the club is worth a lot more, ten times more than Sheikh Mansour paid for it only seven years ago. So I think it's a big surprise to them that
suddenly City is a business rather than just a marketing device.
LAKE: It sounds like it will be a win for everybody if they're able to keep those local fans happy. Simon, thank you so much for joining us tonight.
Simon Cooper (inaudible).
Now shares on Wall Street ended higher. Investors will hoping it's the start of a Santa Claus rally. The DOW closed up around 167 points.
Paul La Monica joins us now with more. Paul, we talked at the very beginning of the session and it looked like a little bit of a (inaudible)
beginning. What's going on, where was the enthusiasm?
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yes, I think that you had a pretty broad gain today which is what is pretty exciting about this. You
had a lot of tech stocks doing well, Google all-time high, or shall I say Alphabet, Facebook, Amazon
(CROSS-TALK)
LA MONICA: I know it's a very weird one. Facebook and Amazon had great days, the banks had a solid day. Despite the weak manufacturing numbers,
people still think the FED is going to raise rates later this month. And that's good for the banks it boosts their profit margins. Retailers
bounced back a bit today because of the Cyber Monday sales looking good.
So it seemed as if pretty much there was excitement about all of the parts of the market which doesn't always happen that all the sectors are doing
well in one day.
LAKE: Yes, and we had seen so much worry lately. So I guess the question is is this going to continue? We do tend to think of the end of the year. We
talk about a Santa clause rally. They're just called that because seasonally people like to go out a winner, they like to get those, you know
the end of year statements looking good. It's sort of in everybody's interest. But there are a lot of concerns. We have been talking about
Divergent Central Bank. I mean is there a feeling this rally can continue?
LA MONICA: Everyone I talk to seems to be you know hopeful that it will continue. As you point out the ECB is likely to boost stimulus when they
meet later this week. Then we have that big jobs report on Friday that will hopefully cement what the FED is going to do. It's the last major data
point. And I think that we've been talking all year about when is the Fed going to raise? And then with every passing meeting it was, well are they
going to raise rates after all, is it going to be pushed to 2016.
I think the market just wants to get this done with. Close the year with the one rate hike, which isn't exactly going to be the most tightening
policy in the world. We're going to go from near zero to what between a quarter and a half point. So it's still easy money relatively speaking.
Let's just get if done with and then move onto 2016 and hopefully earnings can be better than this year even though the dollar is going to be a big
head wind for the rest of (inaudible).
LAKE: Well it's like nobody wants to work about that for the moment.
LA MONICA: At least right now.
LAKE: The bull's firmly in control.
LA MONICA: It's ho, ho, ho, instead of bah humbug.
LAKE: All right, we'll take it. Paul, thank you so much.
LA MONICA: Exactly, thank you.
LAKE: Paul La Monica.
Well Nigeria's Environment Minister says you have to address climate change.
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[16:10:00]
LAKE: If you want to make progress on security and prosperity. We'll have the latest from COP21 right after this break.
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LAKE: Reaching a deal on emissions is an economic imperative that was the message from U.S. President, Barack Obama at the climate summit in Paris.
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LAKE: Before heading back to Washington, The President said tackling climate change is crucial for a wide range of global priorities like
economic growth and security.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This one thing, climate change affects all trends. If we let the world keep warming as fast as it
is and sea levels rising as fast as they are, and weather patterns keep shifting in more unexpected ways, then before long we are going to have to
devote more and more and more of our economic and military resources not to growing opportunity for our people, but to adapting to the various
consequences of a changing planet. This is an economic and security imperative that we have to tackle now.
(END VIDEO CLIP)
LAKE: The World Bank says global warming will hit people in sub-Saharan Africa harder than most.
Last week it unveiled plans for a $16 billion fund to help Africa adapt to climate shocks.
I spoke to Nigeria's Environment Minster and I asked her how her country can keep climate change at the top of the agenda.
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AMINA MOHAMMED, NIGERIAN ENVIRONMENT MINISTER: I think, for the first time, the discussion around sustainable development has us speaking to root
causes, irreversible gains. And so therefore the siloing that we've done in the past of issues is one that we're breaking away from now and seeing that
there is an interaction between areas in for instance, my country, Nigeria, and the northeast where we've got climate change and poverty really being
exacerbated by the issues of conflict.
I think you know there would not be an opportunity for terrorism to grow that it has if we dire poverty, if we didn't have the lake Chad drying up,
if we didn't have the (inaudible) coming in and taking away livelihoods and hope from young people and women for a future. They become then very easy
fodder.
So we do see the interaction between climate change, poverty and conflict and we are looking much more at asking for investments, not charity, not
handouts, but investments in root causes so that we deal with that as well as issues of migration.
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LAKE: Minister, what's at stake if there is no agreement?
MOHAMMED: Things will get much worse. And I don't think we can afford that. They'll become much worse, much more costly.
Certainly countries like ours are already committed to doing what we can for our people. It will be much slower to realize we probably won't make
the gains because we won't be able to invest sufficiently to get over the hump. And I think that that's something that we have to think about very
clearly.
Migration will certainly not be on the decrease, it will increase, we will have much worse effects of it within our countries but also across borders.
I think conflicts will get worse because resources will become scarcer as a result of climate change which is incredibly real.
So I think it's not an option. I think if we really are talking about our humanity, then this is something that we have to do. And it doesn't cost
that much. You know we know that the economy that we have today globally can afford this. And so when we talk about meeting the commitment of 100
billion a year, it's a drop in the ocean to what is required to transform our economy which is trillions.
And I think that that commitment can be made and it can be met and we can find other resources to unlock, bringing businesses in, leverage domestic
resources, dealing with all sorts of other issues that we actually responded to in the framework for financing development in (inaudible).
getting better governments and institutions, a number of issues. There is no one magic wand for this. It is a collective set of partnerships and
commitments that need to be met.
LAKE: We heard U.S. President, Obama sounding optimistic saying this is a problem we can solve. We saw the Chinese coming to this meeting committing
to targets. do you think that the industrialized world and the developing world are moving closer together in trying to solve this problem?
MOHAMMED: I think it's a very big challenge and I think that we have to reduce the trust deficit. Clearly leaders are making the noises that we
expect and commitments in words but we have to turn those into concrete actions.
I think President Obama is absolutely right that this can be done. Climate change is manmade and I think that we have the solutions for that today. We
have to do is just be much more equitable about how we use these resources in the world but ultimately take care of the poor and the vulnerable. And
they are in the millions, and this is the very least that they deserve.
We need to understand this is not about charity, it's about people's rights. People rights of survival, people's rights to the prosperity there
is in the world. And then when you really think about it, Africa for one is bearing the brunt of what has been done over years and yet there is nothing
there to pay for that debt. And I think that you know we need to recognize that Africa itself with its 2063 agenda is stepping up, putting its own
domestic resources in place but it needs a hand and it needs a hand in partnership.
This is not, as I said, -- as I said, this is not a free - a free lunch for anyone. These are investments on a good return. And what we want to see is
peace, development, and the respect to human rights.
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LAKE: We want to show you a place where it is plain to see the tensions between human activity and the need to preserve the planet. Virunga
National Park, in The Democratic Republic of Congo faces potentially disastrous threats. And as Arwa Damon reports, the clean energy project
could create jobs and help to save the environment.
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: By night the world's largest lava lake becomes a stunning mosaic of crashing deep orange red
waves. By day nearly a third of the worlds remaining mountain Gorillas forage for food.
This is Virunga, a world heritage site, in the Democratic Republic of Congo. A place of unparalleled biodiversity.
But surveying the savannah below, park director Emmanuel de Merode knows, natural wonder isn't enough.
EMMANUEL DE MERODE, PARK DIRECTOR: (inaudible) points all the way along, everywhere where there's (inaudible) and that's actually inside the park.
DAMON: The park also sits in the heart of one of the world's longest running wars.
DE MERODE: Probably 18 of our staff, that little stretch of road there.
DAMON: And then there is oil.
DE MERODE: That's where the drilling was due to be.
DAMON: The government had authorized U.K. oil giant SOCO to explore for oil. Conservationists called the move illegal amid allegations of
intimidation and violence. SOCO has denied the claims This November, it abandoned the project.
DE MERODE: And there's still a lot of uncertainty there. And so we have to remain very vigilant.
DAMON: The traditional model of protecting park boundaries will never work here. Especially not when 4 million people live in poverty on Virunga's
edge. So how does nature win? Like this.
[16:20:07]
DAMON: A massive hydroelectric project that will bring sustainable energy to an entire region for the first time. This station built just outside the
park is one of eight. All set to be online by 2025, powered by water, from Virunga's protected mountains.
DE MERODE: And if you've got a healthy forest, then you have these steady water flows, stable water flows and you can reliably produce electricity.
DAMON: And with that will come small and medium companies and jobs. All dependent on the park's vigor to survive. Lead engineer (Safari Combali)
knows it will change his and his children's future.
We live in the dark, he says. This is going to allow a generation of youth to not busy themselves with armed groups but with developing the country.
And making that development reliant on power provided by nature means Virunga has a chance to win the conservation race.
Arwa Damon, CNN, Virunga National Park.
(END VIDEO CLIP)
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LAKE: And we have some news just in to CNN. Facebook founder, Mark Zuckerberg has just told the world that he and his wife, Precilla Chan,
have had a baby daughter. The announcement came as you would expect in a post on Facebook. The girl's name is Max and Zuckerberg has written quite a
lengthy letter to her already. You might want to take a read. It says like all parents we want you to grow up in a world better than ours. We will do
our part to make it happen not only because we love you, but we have a moral responsibility to all children in the next generation. And it has a
lengthy mission statement, you might want to check it out. Congratulations to both of them.
(END VIDEO CLIP)
LAKE: Well imagine sitting down to brunch with the CEO of Ebay or Coca- Cola. We'll tell you how that could actually happen and how it could help the fight against aids. That's after the break.
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LAKE: Countries around the globe, marked World Aids Day, Tuesday.
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LAKE: In Sao Paulo 10,000 red balloons were released. It's also raised awareness about the virus and the roughly 35 million people around the
world infected with HIV and Aids.
Red as you may know is the campaign that partners with businesses to fight the disease in Africa.
(END VIDEO CLIP)
LAKE: It's current fund-raising drive includes an action giving you the chance to buy brunch with top business leaders on Ebay including the CEO of
Coke, Muhtar Kent, Twitter founder Biz Stone, and Ebay CEO, Devin Wenig.
[16:25:14]
The CEO of Red rang the opening bell at the New York stock exchange earlier.
(BEGIN VIDEO CLIP)
Deborah Dugan joins me now in the (inaudible) Thank you so much for being with us and congratulations. I know it's always exciting when you start the
day down there.
DEBORAH DUGAN, CEO, RED:It is.
LAKE: It's hard to imagine. The red campaign has been around for almost ten years. Bring us up to date on where we are in the fight with aids.
DUGAN: Yes, you know, it's so interesting because Red was founded by Bobby Sriver, and Bono to create heat and awareness around the issue of aids and
of course generate funds for the global fund.
In 2002 we had about 700,000 people on ARB medication, now it's 15 million that are alive. Because the world has done the right thing. Governments
have come to the table and there has been prevention, treatment and of course work on a cure. So Red's mission is to bring the private sector, to
bring companies into the fight. So we have great brands like Starbucks, Apple, Dr. Dre, Beats, Belvedere.
LAKE: You name a few and we know your auction. So it's interesting - I was -- this particular fund-raising seems a little bit different because it was
so consumer focused it seemed before but this does seem a little bit geared more to the business community. Are you trying to bring in those corporate
partners as a part of it to raise awareness as well as those who might auction?
DUGAN: Absolutely. We try to fish where the fish are and go where people would be interested in doing some small thing to help. So we give them lots
of options.
So today we're doing a shopathon and we're taking over the Jimmy Kimmel show but more importantly you can go to guilt.com and get products. You can
get experiences with celebrities like have George Clooney for 45 seconds tell you how great looking you are.
LAKE: Who doesn't need that. Where do we sign up?
DUGAN: (inaudible) ride in Central Park with Bono.
LAKE: It is -- it is interesting to move through experiences. Because consumer tastes are changing and you have to keep up with that.
(END VIDEO CLIP)
LAKE: I wonder as we do this there has been so much success in terms of getting the death rate down, does that raise complacency? Do people think
oh we've got this under control I can turn my attention elsewhere?
DUGAN: Yes, and we don't feel it as much right. In the U.S. and in Europe where we've virtually eliminated mother-child transmission of HIV, well
it's rampant throughout Sub-Sahara in Africa.
So yes, there is some complacency because we don't see people dying. But in the world there's 34 million that have died and 37 million that still have
this disease. So you can't with an infectious disease take the pedal off the metal. Because what happens?
LAKE: You know there's an interesting thing, and we just got this, Mark Zuckerberg's letter, but it struck me because you were coming up and we
were about to tease you. He writes in this letter to his newborn daughter. Consider disease. Today we spent 50 times much more to society treating
sickness than we do investing in research so you won't get sick in the first place. We still don't have a cure do we?
DUGAN: We do not, but they are getting closer and closer. And I do feel that the research has really ramped up in the last ten years in quite a
fascinating way. There is a special on HBO that (inaudible) that's going to air today that talks about where we are exactly in the fight with a you
know, a cure.
LAKE: Which is why if we are this close, we have to keep our foot on the gas, and keep concentrating and put money towards the effort so that we can
get over the finish line and make that difference.
DUGAN: Absolutely. It's a pandemic that has been a health issue that's taken us to our knees and it's come 30 years ago and could go in our
lifetime. So the U.N. goals say by 2030 we could get this off the planet.
LAKE: And conquering these pandemics gives us the blueprint in terms of how to get ahead of another one.
Deborah, thank you so much for coming in on this very busy day, congratulations.
DUGAN: Thank you.
LAKE: Well answers to an aviation disaster on a much more serious note.
(BEGIN VIDEO CLIP)
LAKE: Investigators think they know finally what brought down the Air Asia plane that plunged into the Java Sea, we'll have the details after the
break.
(COMMERCIAL BREAK)
LAKE: Hello, I'm Maggie Lake. Coming up in the next half hour of "Quest Means Business," investigators say they now know why an AirAsia flight
crashed last year, killing all 162 people onboard.
Richard talks us through the findings.
And a toxic spill, corruption and a shrinking economy - we'll look at the challenges facing Brazil.
Before that, this is CNN and on this network the news always comes first.
Five people have been injured in an explosion near a subway station in Istanbul, Turkey. There are differing accounts of what caused the blast.
One local officials says a bomb went off but the city government says that is not yet confirmed.
U.S. President Barack Obama says there must be new efforts to stop ISIS funding its terror networks. At the COP21 Summit in Paris, Mr. Obama said
that although he is confident the campaign to destroy ISIS is working, the battle against terrorism in the Middle East will take time.
BARACK OBAMA, U.S. PRESIDENT: It's not going to be easy. Too much blood has been shed, too much infrastructure has been destroyed, too many people
have been displaced for us to anticipate that it will be a smooth transition.
And ISIL is going to continue to be a deadly organization because of its social media, the resources that it has and the networks of experienced
fighters that it possesses.
It is going to continue to be a serious threat for some time to come, but I'm confident that we are on the winning side of this.
(END VIDEOCLIP)
LAKE: The families and friends of 16 Lebanese soldiers are rejoicing after Lebanon completed a much-anticipated prisoner swap with the al-Nusra Front,
an affiliate of al-Qaeda.
Lebanon released several Islamic captives including the ex-wife of ISIS chief Abu Bakr al-Baghdadi.
The speaker of the U.S. House of Representatives says a shooting that happened on Friday shows the need to tackle mental health issues in
America.
A gunman in Colorado killed three people last week at a Planned Parenthood clinic. While there is no evidence the suspect was mentally ill, Paul Ryan
said Congress must act to address the country's problems with mental health.
(BEGIN VIDEOCLIP)
PAUL RYAN, SPEAKER, U.S. HOUSE OF REPRESENTATIVES: The common theme with these kinds of shootings is mental illness, and this is something that we
should not be ignoring.
[16:35:00] This is why we've been working very diligently through the Commerce Committee with Congressman Murphy, a clinical psychologist, to
advance legislation overhauling our much - we need to overhaul our mental illness health system.
(END VIDEOCLIP)
LAKE: Investigators say a technical fault started the process that brought down an AirAsia plane in the Java Sea last December.
But mistakes by the flight crew as they tried to deal with the fault are the reason the plane crashed. That's the finding of a new report on the
accident in which 162 people died.
The airbus was on its way from Surabaya (ph) in Indonesia to Singapore. Earlier, I spoke to Richard who is in Dubai, and I asked him if we could
expect any changes in procedures after this report
(BEGIN VIDEOCLIP)
RICHARD QUEST, CNN INTERNATIONAL ANCHOR AND REPORTER HOST OF "QUEST MEANS BUSINESS" SHOW: The first and most obvious thing is why this computer
fault with the rudder trim limiter system had not been fixed - why it had been allowed to repeat itself more than 20 times with everybody jut
resetting the computer or switching it on and off.
But they never actually went into the unit and yanked it out and worked out what was wrong with it, where it was a soldering breach and break that had
caused the problem.
That's the most obvious thing. But the much more difficult problem is - it's two-fold, -- firstly, why the captain pulled the circuit breaker on
the computer without realizing the unintended consequences what would happen, and secondly once those consequences happened why the second in
command - the first officer - wasn't able to fly the aircraft, why his stills weren't good enough.
Those are the two really difficult questions that aviation has to look at.
LAKE: And Richard, you talk to pilots all the time. How concerned do you think they are? Are we going to look at different kinds of training - new
kinds of training that has to happen in the case of emergencies?
QUEST: We saw this with Air France 447 the Brazil to Paris by the A330 that went down in the South Atlantic. Now in that case, again, an entirely
flyable mis - technical - fault took place which led to the loss of the aircraft because of the way the pilot flew the plane.
And this is exactly the same. There is no difference in many ways to what happened here. The issue of course is the plane is exceptionally
sophisticated in its systems, in its procedures and pilots really are told don't mess around with it unless you know what you're about to do and
follow the instructions when something goes wrong.
It is simply too complicated for them to start - you know - to tinkering about with it when something goes wrong.
And yet you get this situation where when something does happen, are they fully trained in airmanship? That's the phrase - that's the word you'll
hear people use again and again - airmanship. And the question of course for today's pilots is whether they need more training and less of the
systems of more of actually flying the plane.
LAKE: And, Richard, what should we as the flying public, the general public, think about this? Should we be worried, should we change the way
that we approach travel?
QUEST: No, I don't think we should and I don't think we could and, you know, the numbers are still so infinitesimally small that one wouldn't make
any difference anyway.
No, I think we go about our business and you fly the airlines that are reputable and you make the decisions about who you fly on common sense.
For the industry's point of view, they really do have to look very closely at this problem. The reality is once the plane is so-called "in the
cruise," at 500 plus miles an hour at 35, 36,000 feet in the air, the pilots are not encouraged nor trained to hand-fly the aircraft for all
sorts of technical and air management reasons.
That has to change to some extent, and more and more airlines are now training their pilots how to handle high altitude stalls, how to handle
stalls in difficult conditions, all these sort of environments - exactly the facts that happened in AirAsia.
Because, Maggie, it is absolutely the case here that the technical fault was serious but not disastrous by any means. And there is no excuse for
the way this accident took place and what happened.
(END VIDEOCLIP)
[16:40:06] LAKE: We want to come back to news we that we received from Mark Zuckerberg and his wife, announcing the birth of their daughter.
The Facebook founder did it of course in an open letter to Baby Max posted onto the social media site. He and his wife also announced a multi-billion
dollar initiative aimed at promoting equality for children.
Let's bring back Paul La Monica. And, Paul, wow, this hit me - this sort of social media in our inboxes. This is - he's obviously thought a lot
about this.
When we're talking about multi-billion dollar investment, we're not kidding, are we? (LAUGHTER).
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Yes, he says in the letter to Baby Max - congratulations to Mark and Priscilla by the way.
This is currently valued at about $45 billion - 99 percent of his stock over the course of his lifetime is going to be gifted to philanthropic
causes. Obviously that is very admirable. I think many people will be, you know, very impressed that he is doing this especially at such a young
age.
LAKE: Yes and it's - so he's gifting it but he's going to have control presumably or some kind of control over where it's spent -
LA MONICA: Right.
LAKE: -- it's going to be drawn out over years. We don't know yet because this is so new exactly what his involvement is going to be, but one has to
think they're going to pursue causes that are near and dear to their heart.
LA MONICA: Definitely. You think education based on Priscilla Chan's background. But as you already pointed out, this is not something that's
going to happen overnight.
Facebook doesn't have to worry - Facebook investors don't have worry about, a) that all of a sudden Zuckerberg is stepping away from the company. He
said in the letter to Max he's going to be CEO for many, many years as you would expect.
And then there was also an SEC filing that was a lot more concise than this letter to Max that they say that they're going to, you know, gift no more
than a billion worth of Facebook a year over the next three year over the next three years to start up.
The Chan Zuckerberg initiative, so that is something that is clearly not a huge amount of stock and Zuckerberg is going to control the voting power
and what gets done with that stock.
So I don't think any investors really have to worry about him taking a step back -
LAKE: Right and we've -
LA MONICA: -- by any stretch.
LAKE: -- sort of seen this happening, I mean clearly Bill Gates we had him on from Paris talking about another massive investment to clean energy -
LA MONICA: And Mark Zuckerberg's involved with that too.
LAKE: -- absolutely, but for someone so young, I mean, we should point out this is somebody when who in public just a year or so ago, people didn't
even know whether he was capable of being CEO -
LA MONICA: Right.
LAKE: -- they were talking about the fact he wore a hoodie all the time. The transformation is pretty staggering.
LA MONICA: Yes, I think when you look at what Mark Zuckerberg has done as both a businessman and someone who really is - has I think - charity near
and dear to his heart, --
LAKE: And it's engaging -
LA MONICA: -- it's very engaging -
LAKE: -- on these global issues.
LA MONICA: It's a stark contrast to the way that many people probably still perceive him from that movie a few years ago, "The Social Network."
LAKE: That's right.
LA MONICA: -This is not the Mark Zuckerberg of that movie by any stretch of the imagination. This is a grown up, mature, very savvy individual who
is doing good and wants to do more good with the massive amounts of wealth he has from Facebook.
LAKE: Right. Is this going to, you know, -- I don't even know - it's very hard to find a skeptical reason to question his motives here, honestly.
Is this going to change the burden on these tech entrepreneurs? I mean, you know there was a time and there's a lot of criticism leveled at Silicon
Valley about the fact that the gains in technology are not shared by society, right?
LA MONICA: Correct.
LAKE: These companies enrich themselves but they don't create a lot of jobs necessarily and that they're sort of, you know, frat culture some say
in Silicon Valley.
This is a game-changer in terms of what your responsibility is as a young entrepreneurial billionaire.
LA MONICA: Yes, I think what this really shows in particular now that Mark Zuckerberg has a child, he doesn't appear to have any interest in kind of
following the mogul route.
It is not as if Max Zuckerberg -
LAKE: Stocks and houses and -
LA MONICA: -- is all of a sudden going to be entitled to become the CEO of Facebook in, you know, 30/35 years with her multi-billion dollars' worth of
stock that she's going to control.
I think this is very telling that he really doesn't seem to want to have his child and perhaps children if there are more coming, to live this
overly-entitled life that many individuals in Silicon Valley now I guess do --
LAKE: Yes.
LA MONICA: -- given the obscene wealth which is being put to good use.
LAKE: Absolutely. A very different kind of legacy that's going to have a lot of people talking over the course of the next few days.
Paul, thanks so much for coming back --
LA MONICA: Thank you, appreciate it.
LAKE: -- to spread the news for us. Thanks so much.
Well, Brazil's toxic economy sinks dinker - deeper, rather - into recession even as authorities grapple with an environmental disaster.
We'll have more on that next.
(COMMERCIAL BREAK)
[16:47:13] LAKE: In Thailand, economic troubles have led to one of the world's most famous newspapers being censored. Take a look at this - it's
the front page of "The New York Times" international edition in Thailand.
Printers in the country refused to run a front-page article about the country's sagging economy. See that blank space there - that's where it
was supposed to be.
CNN Money's Dylan Byers joins us from Los Angeles. Dylan, this is extraordinary. We're not talking about some back page that was blanked
out. This is a gaping hole on the front page of a newspaper.
DYLAN BYERS, CNN MONEY SENIOR REPORTER FOR MEDIA AMD POLITICS: Yes, no it's press censorship no matter how you define it, and it's not the first
time we've seen it in Thailand either.
When there is negative press - certainly when there's negative press - from the international "New York Times" that printer in Thailand, under pressure
from the government, either just doesn't publish that day's edition or does what we saw here today which is just leave the article out of the paper
entirely.
And the reasons for that is because this article was pretty damning. It described a moribund economy, it said that crime rates were above 60
percent - had seen a 60 percent increase, it said the military power that had taken over the government in 2014 was not showing any signs of
relinquishing power.
And it also included quotes from shopkeepers and merchants and even the deputy prime minister who described the state as a sick person standing in
the wind.
So, you can understand why the Thai government didn't like it. But it's certainly worrisome to see this sort of press censorship.
LAKE: Absolutely. And in this press central (ph) it's not the first time they've done this to international papers. How far does it extend?
Do we see pressure and crackdown on local press as well? You know, do people - are people - fearful of retaliation?
Just how far is this censorship going?
BYERS: Yes, so there's long been a policy in Thailand where you cannot say anything negative about the monarchy. But this has ramped up in the wake
of that military junta that was established in 2014 to the point where people have even been sent to prison for saying negative things about the
king who is ailing and hasn't been seen since September.
People have written things on social media, things on Facebook. Next thing they know, they find themselves in prison. At least three people we know
have died while in prison and the government has done nothing to sort of let people look in to see how they died or what the causes of death were.
So, again, very troublesome, very worrisome and there's no signs of this abating whatsoever.
LAKE: All right. A disturbing story indeed, Dylan. Thank you so much for bringing us up to date.
Meanwhile, Brazil is facing its worst economic crisis since the Great Depression. The economy shrank 4.5 percent in the last 12 months.
Stock markets in Brazil were little changed after those numbers, but the Bovespa is down almost 10 percent this year.
[16:50:06] This all comes as Brazil launches legal action against the world's biggest mining firm over a deadly accident last month.
Rumors about the new iPhone are swirling and they are raising a few eyebrows. We take a look at them after the break.
First though, a highlight from "Make, Create, Innovate."
(COMMERCIAL BREAK)
LAKE: Your phone has one, your music player has one - pretty much every device that plays music has one. But leaked information suggests Apple
could get rid of the standard headphone jack from the next iPhone.
Could this be a ploy to make us buy new headphones? For example, Beats from Apple maybe? Samuel Burke looks at the options.
SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: Sorry I can't hear you, I'm listening to my music. Apples going to do what?
The latest iPhone is just 7.1 millimeters thick, so if the next iPhone is going to get any skinnier, it's going to have to go on a diet.
That might mean eliminating the audio jack altogether which measures 3.5 millimeters and could make the next iPhone up to 49 percent slimmer.
So how will we listen to our music? People who don't want to get tangled up in problems already use Bluetooth headphones. Cordless creates another
problem though - you have to keep these charged.
If you don't want to fork out the money for new Bluetooth headphones, then you can buy this $2 adapter which will allow you to connect to your
existing headset to the iPhone's charging port.
This might become the new standard output for headphones. Sorry, no listening while charging then.
Apple does have a history of making surprisingly drastic changes to its devices and then the rest of the tech industry follows suit.
In 1998, Apple launched the iMac without a floppy disc drive. Remember those? In 2008 Apple shocked many when the MacBook came without a disc
drive. Goodbye CDs and DVDs.
And just this year the newest MacBook eliminated the standard USB port we all use, opting for the new smaller and faster USB-C port.
Earphones aren't your only option. This beanie comes with little speakers inside and connects via Bluetooth, eliminating the need for audio jacks and
cords altogether. Samuel Burke, CNN London.
(END VIDEOCLIP)
LAKE: Wondering why so serious? At least the rest of you. We take a look at a study that compares selfies from across the globe.
(COMMERCIAL BREAK)
[16:58:30] LAKE: It seems like the gray skies and rainy days in London may be taking their toll on Londoners' selfies.
According to a new study commissioned by Somerset House, internet users in the British capital are more miserable in their selfies than any other
city.
The study compared their photos with thousands of others taken in Bangkok, Berlin, Moscow, New York and Sao Paulo where apparently people tend to
smile more.
It says the British prefer more restrained, upright poses.
Anecdotally speaking, we can't say that holds true. This is Samuel Burke, his selfie taken a few days ago when he was in London.
Knowing Samuel it takes a lot to stop him from smiling. And Richard hasn't posted any selfies for a while, he certainly looks happy in his most recent
one.
Maybe that had something to do with the fact that he's in his favorite place in the world - on a plane.
And we want to recap a story that's just been breaking this hour. Facebook founder Mark Zuckerberg and his wife Priscilla Chan have announced the
birth of their baby daughter Max.
In a letter to their new child, they've also pledged to donate 99 percent of their Facebook shares worth $45 billion to charity over the course of
their lives.
And that is "Quest Means Business." I'm Maggie Lake in New York. The news continues here on CNN.
END
