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Quest Means Business
Oil Prices and Stock Markets; Star Wars Opens in China; David Bowie Has Died. Aired 4-5p ET
Aired January 11, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] MAGGIE LAKE, CNN ANCHOR: The Dow is moving higher at the end of a volatile session trading, it's coming to a close on Monday, January the
11th.
Crushed by a strong dollar, Morgan Stanley warns oil prices could go as low as $20 a barrel. The world's big goodbye to David Bowie, musician and
business pioneer.
And to the country far, far away the force awakens, Star Wars open in China.
I'm Maggie Lake and this is Quest Means Business.
A very good evening to you, tonight, oil prices are in free fall. Brent Crude is currently down more than 6 percent hovering near the new 12 year
low of $31.20. It hit earlier today.
There are three factors that have been causing the big falls as we have seen so far this year. First of all, everyone, keeps on pumping oil to
protect their market share, which is led to a (inaudible).
There has been a slow down in demand from the World's biggest oil consumer in China finally is strong dollar, is also having a big impact. The
stronger it gets, the more expensive it is for buyers, paying with other currencies.
In fact, Morgan Stanley warns that if the U.S. dollar continues to steersmen, it could push oil to as low as $20 a barrel. Analyst say that
just another 5 percent rise in the dollar, could push oil down between 10 and 25 percent.
U.S. markets have also been volatile this Monday, the Dow has been swinging from triple digit gains to triple digit losses and back to green again.
Eventually, it managed to close up 51 points.
Stephanie Flanders is chief market strategist for Europe, Middle East and Africa at J.P. Morgan. She joins us now from London,
Stephanie, this has been one heck of a start of the year, let's begin with that forecast for oil. Does that sound probable that we could see it go as
low as $20 a barrel?
STEPHANIE FLANDERS, J.P. MORGAN ASSET MANAGEMENT: I think that people have stop to try to make point forecast about oil. But it does feel like
another year that we're having to explain a surprisingly shaft further deep in an oil price which is already fallen so far in the last 18 months. I
think we've basically been confident that the key drivers putting us in a low oil price environment are on the supply side. You mentioned the fact
the producers, are maintaining their production to maintain market share rather than trying to limit quoters (ph) or any action like that.
I think when you enter a year, with those kind of supply our forces, and continued confirms around emerging market growth and what's going on in
China. I don't know very many analysts who thought that the oil price was going to go up in the next few months when you have that kind of
environment often it has a further leg down.
LAKE: So when we look at all the volatility that we are seeing in equities, is this centered solely on the concerns about what a slowing
China means for the global economy?
FLANDERS: You know, I think there's a couple of things going on. I mean, one is that there is a desire to see some kind of clarity around the key
uncertainties hanging over markets or hanging over the global economy. Investors wanted to see some sign of stabilization in China. Not
necessarily great growth in the next year, but just assign that things were bottoming out in that core industrial side on the economy.
We haven't seen that. We haven't seen also sign of stability in the dollar and in the Chinese currency. And without very much action on the U.S.
economic front, the good news or bad news, I think that just leaves markets moving down because we don't have any good reason to go up.
This is always a year that, I mean, I think that one of the other elements of this is just, although we think there are decent growth prospects
spacing us for the next year ahead, in the developed economies. We think global consumers can or the develop world consumer can carry on driving the
recovery forward.
We know this is not a huge amount that mentioned behind that, and if anything goes wrong if things are much tougher in the emerging markets,
then we thought or if China really does lose control of its currency, we know there are many safety nets out there. There aren't a lot of policies
(inaudible) to pull at the once that we pull five years ago.
LAKE: And the worry itself as opposed can be incumbent self-fulfilling prophecy. I mean, we do have the Federal Reserve, they're on an interest
rate hike track but some people think they've simply won't be able to follow through, or is the fact that we have a divergent situation now, the
U.S. Central Bank possibly tightening although ever so slightly and European, Japan still trying to step on the gas but without much effect, is
this going to cause a problem? Are we over stating that worry?
Well, I think we -- none of these are things that are new concerns or new features of the world.
[16:05:00] I do think it changes the calculation a little bit for the fed. Because they are not just this, responding to that domestic inflation
refreshes which they haven't really seen yet in the U.S. But also, what's going on directly with inflation due to the oil price and due to what's
going in the rest of the world.
I think if you don't -- if you stay another leg down the oil price, which actually prevents, you know, keeps the U.S. inflation right very low,
rather than having it bounce off in the first part of this year as we expected.
Well, I think that that does make it harder for the fed to be thinking about a great number of interest rate hikes in this year ahead. And we
know that that was -- it was even, you know, a debated issue when they finally did raise interest rates last month.
So I think, you know, it could be that that was slow that part of rate rises, even though the U.S. economy in many senses, you know, should be
able to cope with higher rates.
BECKY ANDERSON, CNN: It could be one and done if that is the case. Stephanie Flanders, fantastic to catch up with you. Thank you so much.
Now, when you latest drop in oil prices, you will see that brand crude has plunged more than 70 percent in just a year and half, this hit (inaudible)
causing big problems for countries that rely on oil for most of their revenue. For example, Saudi Arabia has been forced to high gas prices by
50 percent to tackle and growing budget deficit.
Nic Robertson has been looking at the impact in Riyad.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN CORRESPONDENT: An oil dependent Saudi Arabia, the world's largest oil producer who better to explain the street view of
plummeting oil prices, a Saudi taxi driver.
ABDULLAH AL-OTAIBI, TAXI DRIVER: Abdullah Al-Otaibi.
ROBERTSON: Abdullah Al-Otaibi, very nice to meet you. Abdullah Al-Otaibi, thank you.
AL-OTAIBI: Very much.
ROBERTSON: He has 12 kids, some day's earns 50 Riyals, barely $15.
What is 59 Riyals buy you at the moment? What can you buy with 50?
AL-OTAIBI (through translation): Tomatoes, onions, milk, not a lot he says. Tells me business use to be better, it's impossible I need both the
taxi and my army pension. One without the other won't cover the bills such as electricity mobile phone, meat.
ROBETSON: At the airport where we meet there are plenty of others just like him, trying to make ends meet, waiting, sleeping between jobs. The
reason he says...
AL-OTAIBI (through translation): Too many foreign drivers and the big taxi company moving Saudi independence like him outs of prime spot. We need to
look after Sauders (ph) first.
ROBERTSON: On our journey, another blow fueling up. In recent days electricity, water and gas subsidies cut, pump prices jumping for about
$0.60 cents to almost $1 a gallon.
AL-OTAIBI (through translation): "We do have to keep this gas", he say, "But yes, the account in subsidies is going to make pay my bills even
harder.
ROBERTSON: In the past years, the country is dues (ph) for about a hundred billion event reserves. There's plenty left but the cut in subsidies is
only the beginning of economic reforms. The king's son is aggressively navigating the country away from oil dependence, recently suggesting
privatizing some state companies including what could become the world's largest company, the Saudi Oil giant, Aramco.
Abdullah's not up on the details but says, it's OK if it's done right but it must work in Saudi interest. And better future for his kids he hopes.
For him, for now belt tightening for sure.
Nick Robertson, CNN, Riyad, Saudi Arabia.
(END VIDEOTAPE)
LAKE: He rewrote the rules in music, fashion even business. Fans say goodbye to the many faces of David Bowie.
(COMMERCIAL BREAK)
[16:10:42] LAKE: You are looking at pictures from Brixton in London. Fans are out in droves. Remembering the man once know as Ziggy Stardust, the
Thin White Duke, the Picasso of Pop and by many, many more names. We knew him best as David Bowie, and he past away early Monday at the age of 69.
For pop culture fans across the planet, the stars look very different today. Nick Glass looks back in a career that extent nearly five decades
in music film and fashion.
(BEGIN VIDEOTAPE)
NICK GLASS, CNN CORRESPONDENT: The simple truth is David Bowie was magnetically agelessly cool.
DAVID BOWIE, MUSICIAN: Through '84, I have the ride of my life. I mean, the whole less dance kind of thing. Being shop (ph) into, you know, that
kind out of a cult statues into this kind of, you know, all the new Phil Collins, you know, just like, "What is this? I'm on the (inaudible)."
GLASS: More then love, another hit from his album let's dance.
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
BOWIE: And then, two or three years, where I really felt like...
GLASS: And he was lost in the wilderness, (inaudible) his drugs for companionship.
BOWIE: That really took me a long time to get back on my feet again and realized that what I really enjoyed doing was the creative process of
making imaginative music, not reaching the expectations of audience.
GLASS: It all begun at school outside London in the early '60s. 16, he already had careful hair and the band.
PETER FRAMPTON, MUSICIAN/SCHOOL FRIEND: I could count on one hand the people that were, you know, had started playing music that young in the
school. It was, pretty obvious that he had something very early on that was gone a blast.
GLASS: The Jean Genie from 1972...
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
BOWIE: Being an artist ever since I was a kid, the one thing I really wanted to do is to affect the medium, you know, that was my very important
to me. And I think if you fail that you've contributed to the currency and change it, a little, that's really good for the (inaudible).
GLASS: This was the cover of his first album simply called David Bowie in 1967, Space Oddity followed in 1969 with it's famous title song...
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
GLASS: Hand loosens skin, great bone structure, physically there was always something other worldly about Bowie, an old schoolmate did
(inaudible) his early album covers that (inaudible) school leaving Bowie with his left eye famously discolored and dilated...
GEORGE UNDERWOOD, ARTIST/SCHOOL FRIEND: A new (inaudible) wouldn't fight me, I just so annoyed and I just went, you know, we made friend afterwards
and they did sent to me many years later that I did him a favor, so given that (inaudible) look.
GLASS: The title track from the Ziggy Stardust album in 1972.
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
BOWIE: The chameleon would change the color of its skin to fit into its environment. I think I don't (inaudible) the reverse.
TONY VISCONTI, PRODUCER: I know like when he was in the Ziggy, I know -- does Ziggy Stardust face, I know he was the brain. I was the ideas guy.
He dreamt all that up.
GLASS: Life on Mars in 1972.
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
VISCONTI: I'd say what David strength is, he is always making a movie in the sense. He's like a director. He sees something, he's got a vision of
a new kind of sound in a new direction and he goes for it.
UNIDENTIFIED MALE: Nothing you have seen or heard about David Bowie will prepare you for the impact of his dramatic performance in "The Man Who Fell
to Earth".
[16:15:00] GLASS: In the movies, he was unbearably a great interest.
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
UNIDENTIFIED MALE: Just when you take, you've got him figured out he comes out. He comes out and accomplish. He is an actor. He is a musician. He
is an artist, you know. And he puts some all together and does whatever he wishes, whenever he wishes.
GLASS: As a teenager, he signed his name the flourish of a born star (ph), David Jones the name he was born with. Bowie's greatest talent was always
his voice and his ability to write song for that voice. There were 27 studio albums in all.
BOWIE: I'm kind of greedy (ph) first, something that kind of really sparks me off and gets me thinking. And when testifying that on the outside of
the mainstream, you know, because the -- once you get sucked into the middle of mainstream, it's tyrannical in there, it's despotic, you know.
And I don't want to be load by that blindness, you know. There's nothing in there in the mainstream that I want in my life, I -- really is just not
what I want.
GLASS: Here is 1977. David Bowie, the Outsider, he became a legend on his own terms.
(END VIDEOTAPE)
LAKE: And I know if you're on social media today, you know, a lot of people quoting that song and many others. David Bowie will be remembered
for his constant evolution from his many onstage personas with seemingly endless over the top styles. But what maybe overlooked is that acumen he
showed as a businessman.
In 1997, Bowie made his debut on Wall Street with the introduction of Bowie Bond. He raised $55 million by giving investors a stake in the sales of
his music. The next year, Bowie entered the internet space when he launched a service provider called BowieNet. The idea was that fans could,
"Be a part of a single environment where vast archives of music and information could be access."
And his latest album released on his 69th birthday just two days before he died is, of course, to the top of iTunes chart this week. It includes one
song called Lazarus that is filled with references of death and resurrection.
Well, joining me now is Jem Aswad Senior Editor at Billboard. And, you know, it strikes me we've been covering this all day, and you're just sort
of blown away by this scope of this man. It's the unfortunate about when we do and obituary.
But it is right that in addition to all of this other influence, he really was so far ahead of the curve in seeing what was going to happen with
music, especially when it came to the influence of the internet.
JEM ASWAD, SENIOR EDITOR AT BILLBOARD: Oh, absolutely. I mean, now thing Bowie Bonds and BowieNet didn't necessarily work perfectly. But the idea
was certainly there. And he proof to be just his visionary, big picture in terms of the way things we're going as he was in his music.
LAKE: What do you think it was about that, I mean, everyone was involved and as people say he was so early in embracing the internet and sort of
understanding the power that that perhaps, that gave him. And if you really saw that music in a way or at least recorded music was going to
become a commodity.
ASWAD: Oh, absolutely. And, you know, he had an ability to see the way things are going and the thing were going and the things were changing, and
to see the possibilities inherent in the internet. You know, he did -- he point the thing like that throughout his career, not necessarily always in
business was always with music.
LAKE: That's right. And one of the things we talk about business, about ventures and acquisitions, and partnering in making those things work. He
was a master collaborator as well. Many of the twist and turns he made were because (inaudible) way and chose and curative with somebody, or just
something, but then, an unacceptable producer or partner on an album?
ASWAD: Oh absolutely. And he could see that it would make sense for him to work with someone. You know, even, you know, when he came out as
bisexual in 1972, that had a business angle to it. He wanted to become a star, he knew that that would make a splash and I don't know if he did.
LAKE: And for this person who achieved all of this, and sort of had so many influences, at the end, he became very private. We now know he was
dealing with health but he did seem to withdraw a little bit from the glare and (inaudible) to pressure that came with that celebrity.
ASWAD: Yeah. I think he -- it was two things. It was its health for one thing because he did have a heart attack in 2004 and he stopped touring
after that. But also, he had a new family. You know, he had married Iman, they had a daughter who is now I think 15. And he just wanted to be home
with his kid and his family and be able to raise her in a way that they wasn't able to with his son, Duncan who was born Zowie but they don't call
him Duncan.
I'm sure he was rarely around him and couldn't be a traditional father in that way in those days.
[16:20:00] LAKE: Yeah, and gave a second of that, it's so important. You know, we talk about his ability to see and he is quoted it saying, "I hope
everyone is preparing because live touring is going to be one of the only unique things after music". And it turns out that that is where the money
is.
Bowie a master out performing perhaps more than anyone else we think of, when we think of people in the music industry early on.
ASWAD: Oh absolutely. And he can still, you know, like I said, he stopped touring in 2004 but he -- it was it's -- right now is the number one way to
make money for a recording artist. And his live shows were things that you couldn't miss. I saw him three or four times, I think every time there was
some spectacle about it.
LAKE: We talk about him as being Picasso. As (inaudible) do you have a favorite period, a Bowie period because every one has different reference
point?
ASWAD: Well, the period went by so quickly in the '70s, that would have to isolate that decade. There's no question that creatively influentially,
visually, musically, his voice, his song writing, all of that (inaudible) '70s, you can take any album from those years and you can't go up.
LAKE: It's I think is why everyone feel such a sense of lost today that a real creator is gone. Thank you so much for coming in and sharing with
today. I appreciate it.
ASWAD: Thank you.
LAKE: Well, as the world mourns the lost of David Bowie, this animation has been widely shared on social media. It shoes it various looks over the
years created by the artist Helen Green. It gives you an idea of the scope.
Now, Bowie seems to have an influence on everything he touched and certainly in the world of fashion.
Earlier, I spoke to Victoria Brooks. She co-curated the Victoria & Albert Museum's David Bowie is exhibition back in 2013. She told me his impact
will be felt all around us for many years to come.
(BEGIN VIDEO CLIP)
VICTORIA BROOKS, CO-CURATED, V&A "DAVID BOWIE Is" EXHIBITION: Well, (inaudible), it's not discussion either. He used to have a huge influence
on, let's say, music from brook set design, internet culture, film and so on. I think we see his influence all around us. He is really permeated
the culture.
LAKE: And when you look at artist today, who do you think sort of represent that legacy? Where can we see these influences even on a stage
tonight somewhere?
BROOKS: Well, you'll seem today the tributes coming in as we have seen in London, from -- every one from Kanye West to Madonna. There are many, many
musicians, the whole of the new romantic movement here for example, would pay tribute to Bowie as greatest influence I imagine. But it's far broader
than that, looking around is, opening a newspaper everyday, you'll see some kind of link to a lyric or a visual representation. Of course, the
lighting volt (ph) you see everywhere.
So I think that which body of this (inaudible) material as well that goes out into a culture that will see -- we do see being used all around us.
LAKE: Has there been anyone else in the music industry quite like him that has had this far reaching influence in so many different areas,
simultaneously?
BROOKS: Well, I think that's the unique thing about Bowie. It's really hard to think of anybody who has taken as his inspiration from such a broad
range of places, put them out there to a very enormous number of fans and then, gone on to be presented through his influence on other performance.
He has enormous breath in way he gets his ideas from, but also in the coverage of his fan base and so on. I don't think there's anybody with the
reach that Bowie has.
LAKE: And he did, he was a creative force and so global out way before we got use to thinking about the world shrinking through information. Bowie
really had that global reach in terms of creativity and also those that we connected with.
BROOKS: Well, that's so true. You think this is a boy born in Brixton, grew up in Beckenham. But he always took everything to the next level.
And he seem to have this sort of almost super natural ability to see what the next big thing would be. So he was doing video before videos really
existed, and he was a sort of well traveler as if were before they were global assistance. And he is clearly, you know, grew into an international
global superstar, very much representing the world that is moved along in the same way along side him.
LAKE: What do you think his legacy will be or from your perspective, even personally, what will David Bowie mean to people?
BROOKS: I think he means so many things and the reason in our case, we called the (inaudible) David Bowie is as it (inaudible) the statement.
He's all around us but also is an unfinished sentence. He means different things to different people.
But I think his legacy will continue to see, visual legacy all around us. I think musicians and other creative people will continue to cite him as an
inspiration to always pushing things to excellence and to the next level, and that arresting on y our laurels (ph).
(END VIDEO CLIP)
LAKE: David Bowie was 69. We'll be right back.
(COMMERCIAL BREAK)
[16:26:40] LAKE: One woman has drown and as many as five others are missing after people smugglers threw them into the sea.
The body of the woman has been recovered. She was part of a group of Somali migrants who've been traveling in a boat off the coast of Southern
Italy on Monday.
The Italian Coast Guard says, the smugglers threw them overboard before escaping is a second vessel. 37 people were rescued or made it to shore.
The migration crisis is just one of the problems facing Italy as it tries to throw off that bureaucracy and annoyed to the world that it is, indeed,
open for business.
Mr. Calenda is Italy's Vice Minister for Economic Development and he is in the U.S. to promote investment in the country. Thank you for joining us,
lovely to see again.
CARLO CALENDA, ITALIAN VICE MINISTER FOR ECONOMIC DEVELOPMENT: Thank you. Thank you.
LAKE: This is a difficult time not only is Italy facing migration. We have world market is very volatile. What are you hearing from investors in
terms of their concerns?
CALENDA: Well, I have to say that Italy is now in the right position to attract foreign investment. We have a very strong and vibrant industry.
We're performing very well in export especially in U.S. We are half 25 percent in 2015, and we are a safer place now.
Now, you know, Paris emerging markets are suffering. Italy has all the factories (ph) to be the right place to invest. And of course, we have
done lot of reforms many others are needed but we are strongly working for, you know, have more businesses to cut the red tape, to have a more feasible
, let's say, and welcome the investor from abroad.
LAKE: And I think investors look at Italy and you do have a more diversified economy. You do have manufacturing, you have export capability
but they see the headlines. Terrorism on the rise, the migration crisis, a drain on countries, and it seems to some that Europe is splintering in the
phase of these challenges rather than coming together.
CALENDA: No, it's true. It's a very difficult moment for Europe. We cannot face this crisis on an individual, from an individual perspective.
We have to act together. We have agreement, the (inaudible) agreement that allow field movement. We need to maintain that agreement life because it's
a very core of the, you know, political project of Europe.
At the same time, we need to face the challenge of helping the immigrants that are coming because there are wars. They are not mainly economic
immigrants. There are problem with wars, there are refugee and we need to support that.
LAKE: We know that Italy has put a lot of work in sense of financial crisis, the banking system is stronger. But the IMF stiff says that it's
worried about the level of non-performing loans in Italy especially when you're looking at small banks. Are you being ask about this by investors
and what do you telling them?
CALENDA: Definitely. We made one of the most needed reform with us, to conceal the (inaudible) of the so called popularity (ph) bank. The small
bank with not transparent governance and this is something that as being, let's say, due to the market for many years.
[16:29:00] We have done this now and this is was a very important step. We will keep on working on a banking system. I have to say that we, in Italy,
we didn't support from the state the banking system, so what they did -- that they -- we've covered without the support of the state, which is a
very important because it means that they are able - we are able to face the crisis, now able to perform again.
LAKE: Well it's been a challenging start to the year. A pleasure to see you again. Thank you -
UM: Thank you very much.
LAKE: -- for speaking to us and to the investors. Appreciate it. Thank you.
Now concept cars, the most innovative technology and sleek designs. We will bring you the best from the Detroit Auto Show. Stay with us.
(COMMERCIAL BREAK)
LAKE: Hello, I'm Maggie Lake. There's more "Quest Means Business" in a moment with "The Force Awakens" in a country far, far away. "Star Wars"
opens in China. And for $200 million the Playboy Mansion can be yours, tenant included.
But before that, the news headlines this hour. The United States is taking a new approach in the fight against ISIS targeting the extremist group's finances. U.S. dropped bombs on a building
containing large amounts of cash controlled by ISIS. Two U.S. defense officials told CNN the bombings took place on Sunday in
Mosul. They could not say how much money was destroyed but estimate it was in the millions of dollars.
An aid convey has now entered the besieged Syrian city of Madaya. Four trucks loaded with food and blankets rolled into the rebel-controlled town
late Monday afternoon. A U.N. source says dozens more vehicles carrying medical supplies and other
basics were expected to be right behind them. Recent photos and reports suggest people in Madaya are starving with some eating grass to stay alive.
Two Pakistanis and a Syrian man have been injured after they were attacked by a group of men in Cologne, Germany.
It's being seen as possible retaliation against refugees and migrants after a series of mob assaults on women in the city.
There have been over 500 complaints related to assaults against women on New Year's Eve.
Barcelona's Lionel Messi has won football's World Player of the Year Award. It is a record fifth time the Argentinian has been given the honor and the
first in three years. Messi defeated Real Madrid's Cristiano Ronaldo and his Barcelona teammate
Neymar. The music world is mourning British rock and style icon David Bowie. Bowie
has died at the age of 69 after an 18-month battle with cancer. He leaves behind his wife supermodel Iman and two children. Bowie had just released his final album called "Blackstar."
(MUSIC PLAYING)
[16:35:12] LAKE: If you want to know what innovations will soon change the way we drive, Detroit is the place to be for the next two weeks.
That is where the North American International Auto Show has kicked off this Monday. On the Buick stage, we have the Avista Concept model.
The company best known for comfort and luxury has added an engine with some serious horsepower.
Now, Tesla cars like this Model S can now park themselves in your garage. Tesla released a new software on Sunday.
In the morning you just clip a button and the car will open your garage door and roll out, ready to be driven. That's what I talk about
convenience. Meanwhile, Mercedes has now presented a new E-class model. The company says it brings fully autonomous driving a step closer.
The Mercedes CEO says trust in the brand remains strong despite the recent emissions scandal which hit its German rival Volkswagen.
I spoke with Dr. Dieter Zetsche before the show and asked him whether Mercedes could sustain strong sales that it had last year, especially in
China.
(BEGIN VIDEOCLIP)
DIETER ZETSCHE, CEO, MERCEDES BENZ CARS: The clear answer is a clear yes. We have a lot of products going for us.
We have the new E-class coming and now even with the current struggle on the stock exchange but we in recent days in our showrooms didn't feel
anything about that but a confirmation of very strong demand.
LAKE: From the plug-in hybrids to the convertibles - the luxury that we see behind you, clearly a lot of vehicles. Talk to me about what the buyer
looks like in China. What does your target customer look like?
ZETSCHE: Well obviously it's the customer who has made some success, you know, who is able to go for a car. And the surprising thing is that 20
percent of our S-Class buyers are first car buyers. So they're in their 30s and we have never ever had an experience like that in any other market. There are still people expired (ph) to the brand, and
the moment they can't afford so they come to us.
LAKE: So these are new buyers. Clearly you want them to have the utmost confidence. We know that Brand Germany took a hit as a result of the
emissions scandal at VW. Where are you and what have you done to rebuild that trust?
ZETSCHE: Well of course there were some questions at the beginning if that's specific for one company or if it's going beyond.
We early on and I myself made very clear statements that we of course follow the rules and do what we're expected to do. And based on decade-
long trust we have built, these things are behind us. We never saw any impact on the showroom. But of course, again, there were some questions. This is done and I think we are disregards where we have
been before the crisis.
LAKE: You're unveiling new Mercedes E-Class there, the company calling it "the most advanced vehicle in our portfolio."
How much of the research and development budget do you think that you're needing to spend on technology - on new technologies?
ZETSCHE: Well all together we spent more than $5 billion a year just for cars - just in R&D. And a good portion of that of course is going into the
drive line, into alternative drive lines, ever more efficient combustion engines.
But almost the balance is going to the new opportunities which are coming from the digitalization of our industry.
LAKE: And are you going to continue to make the type of investments that you've made in fuel efficiency even though we are seeing very low fuel
prices? The forecast isn't for a jump any time soon, and you see a lot of people
moving back to that SUV - to the truck market.
ZETSCHE: Well of course we see that trend especially in the U.S., but worldwide on the other hand, we have regulatory requirements.
And we definitely have to continue independent of the current oil price to drive the efficiency of our vehicles up to reduce fuel consumption and
that's what we are doing, on the one hand to fulfill the regulation, on the other hand, because you know it's the right thing to do in the long run.
(END VIDEOCLIP)
LAKE: New Delhi, the world's most polluted city, is also taking steps to reduce emissions. However, new driving restrictions are putting pressure
on the City's public transportation system and making it difficult for many residents to get to work.
Alexandra Field reports.
(BEGIN VIDEOCLIP)
ALEXANDRA FIELD, CNN CORRESPONDENT: This is worse than bad - not the traffic. Actually there's less of that than normal.
It's the air. To help clear it, the Delhi's government says these steps are necessary.
A temporary ban keeping odd-numbered cars off the road on even days and even-numbered cars off the road on odd days, an attempt to target a toxic
problem - pollution. [16:40:08] When you walk through the streets of Delhi, you can't help but
see it of course and smell it. But the most disturbing part is you can actually taste it in your mouth.
If you're not used to being here, you can feel it burning in your throat. In fact, the City's highest court recently said that living in Delhi was like living in a gas chamber. So those are the conditions that some 20
million people face every single day. There are 9 million registered cars on the streets of Delhi, 1,400 more
cars come on the roads each day. So while cars are only part of the problem, every driver is being asked to be a part of the solution and there are even people who are out here to
remind you.
Following the rules, Laboni Metra (ph) takes a walk followed by a ride on a rickshaw. Then there's a 30-minute train ride, followed by a rush through
throngs of commuters and another rickshaw ride. All that to get to work.
LABONI METRA (PH): That's like one hour, 15 minutes to deech (ph) office.
FIELD: So is this working?
SUNITA NARAIN, DIRECTOR, CENTRE FOR SCIENCE AND ENVIRONMENT: Without taking emergency action, pollution levels would have been much higher. And
so what this scheme has done is to play a role to moderate the high pollution levels.
FIELD: Clearly cars are part of the City's pollution problem because of their numbers, because of congestion, because of toxic emissions.
But the odd-even rule doesn't cut Delhi's pollution problem in half. There are a lot of exceptions - public vehicles, high ranking officials,
motorcycles and women traveling alone. It's just a temporary measure - just a number of attempts to fight pollution, including a ban on large diesel SUV and higher taxes on
commercial trucks coming into the city.
FIELD: When it comes to a long-term solution, odd-even exchange wouldn't be enough to move the needle?
NARAIN: No, absolutely not.
FIELD: There's a consensus that too many other factors contribute to the City's pollution. And the more practical matter on everyone's mind -
Delhi's public transit system couldn't handle it.
NARAIN: So for the first time I think people in Delhi are talking about public transport, and I think that's the pressure that needs to be built on
government for the systemic change.
FIELD: That would be the giant leap. Activists hope it starts with these smaller steps. Alexandra Field, CNN New Delhi.
(END VIDEOCLIP)
LAKE: "The Force Awakens" in China as Disney finds the fans it's looking for. How the Jedi conquered this crucial market, next.
(COMMERCIAL BREAK)
LAKE: A long time ago . . . OK, actually this weekend in a galaxy far, far away, well, in China. The Force has officially awakened.
Disney says "The Force Awakens" earned $53 million on its opening weekend there. That brings the global total to $1.73 billion.
The film is ranked number three on the all-time worldwide box office list. We'll see if it stays there. IMAX CEO Richard Gelfond joins me from
Toronto. Great to see you, Rich. This has been just unstoppable, the "Star Wars" movie. It's already shattering IMAX records. What do you think we're
expecting when it's all said and done?
RICHARD GELFOND, CEO, IMAX: You know that's always hard to predict - the all-time record holder is Avatar which did about $2.8 billion. I think
that's going to be a hard one to hit. [16:45:04] But I'm pretty sure it will go over $2 billion before this is over, not much question about that.
It's been a universal phenomenon. I mean, we have IMAXs in 66 countries and we've done over 10 percent of the worldwide box office.
We're up to about $180 million on 1 percent of the screens. It's just been - we had high expectations and this exceeded them.
LAKE: Yes, I mean we have talked before about the studios building films for IMAX. I mean, this seems perfectly made.
There are some people wondering though if Disney's asking for a little bit more in terms of the share of the profit than they usually do for a film?
GELFOND: You know, that's really between Disney and separate exhibition chains. I've heard that but I just don't know. I think it's on a country-
by-country basis. Of course in China, the rates are set by the government under a - an MPA
agreement, so that wouldn't be the case. But I think it depends on the particular territory. But, hey, if you're an
exhibitor, you've got to be happy to pay Disney whatever you're paying them because it doesn't get much better than that.
LAKE: (LAUGHTER). Yes, that's right. You know you mentioned big in China for you particularly. You have a lot of your business increasingly
centered there. There's so many concerns about the Chinese economy right now. What are you - what sense are you getting of the of the Chinese consumer and what kind
of condition they're in?
GELFOND: Well last week, the week before "Star Wars" opened, we finished playing a film called "Mojin" which was a Chinese language film and we set
the record for our biggest box office ever for a Chinese language film. And then the week after kind of the market disruptions happened in China,
and people said, `Well, see how that affects your box office' and it was the best Saturday/Sunday opening we've ever had.
We did about 15 percent of the box office in the whole country just in IMAX's 250 screens and we charge a price premium.
So I believe for consumer discretionary, it's holding up nicely. I think of manufacturing, export - those things don't seem to be working well. But
for affordable luxuries, I think people are putting money in their pockets, they're taking their family out and I think, you know, things that don't
cost that much money, it's a good way to escape. If you look also when the worldwide recession hit in 2008, the cinema business held up quite well. You know, people might not go on vacation or
high-end restaurants, but they've got to do something. And I think cinema's an affordable way to do it.
LAKE: Especially when you've had these kind of movies that are about escapism. As this does so well, is it going to set up a situation where
this is a hard act to follow?
GELFOND: Well I think the great thing for us, and more importantly for Disney, is that this is the first of five films. So you have episode 7, 8
and 9 and then you have two films in the off years. So it's four or five years of movies.
So usually in the beginning when you plan it, you hope to build a franchise. But Disney was brilliant in that they acquired a franchise that
was already there and they have a multi-year plan. So I don't think so. And the reviews were so good and the return visits - I think they've set themselves up nicely for multi-year successes.
(END VIDEOCLIP)
LAKE: And I can see why that's making you a happy man as well. CEO Richard Gelfond from IMAX. Always great to catch up with you, Richard.
Appreciate it.
GELFOND: Thank you. Great to be with you.
LAKE: Next, how could you become Hugh Hefner's new roommate for $200 million? First, a highlight from "Make, Create, Innovate."
(COMMERCIAL BREAK)
[16:50:07] LAKE: The Playboy Mansion is up for sale, and for $200 million you not only get the keys to the door, but the original playboy himself.
Hugh Hefner, founder of the magazine, intends to stay on when the house is sold. The estate is said to boast quote, "Every amenities imaginable."
Let's take a look at what's included. Set in 5 acres, the mansion is billed as an ultra-private retreat and the ultimate setting for largescale
entertaining. Handy if you have a few girlfriends coming around. It's one of the only few residences in Los Angeles with a zoo license and also has a freeform pool with a large cave-live grotto - the setting for
many a party as you might imagine. And of course Hef himself is staying put. Playboy Enterprises says the mansion has been a creative center for the 89-year old for the past 40
years and will continue to be so. You could say he's, well, part of the furniture. Gary Gold is one of the agents listing the property along with Mauricio Umansky. He joins me now
from Los Angeles. Gary, it's great to be with you. We're having a bit of fun there of course. But it is a bit of an unusual situation that you're buying the
house but Hugh's going to continue to live there. Are you basically paying to become a landlord?
GARY GOLD, EXECUTIVE VICE PRESIDENT, HILTON & HYLAND: No, it's a life estate and he's going to be there for the life of this property. And that
does happen in other situations, but there's only one Playboy Mansion.
LAKE: That's absolutely right. GELFOND: So what kind of buyer do you imagine would be interested in something like
this? Explain to me sort of the clientele you're looking for, you're looking to market it to.
GOLD: Well the buyer's going to obviously be a billionaire, and it could definitely be a collector. It's the same type of person that'll buy a
highly-coveted sports team.
LAKE: Yes.
GOLD: And I think it's also going to be someone who's got a larger-than- life personality like Hef.
LAKE: Now, can you stay there if you own it or is it kind of like buying a museum? I mean, how does this work. As you could imagine, especially if
you're looking at some of the younger billionaires who'd like to be spending some time there as well.
How are you sort of explaining this to people and potentially some of the billionaires watching our show?
GOLD: Well, it's a life estate. He'll be there for the balance of his life. This will give someone the opportunity to kind of figure out what
they want to do with it. And it'll all work out fine and that will be an arrangement that our buyer will have - won't have a problem with.
LAKE: Now, so this is special of course because it's the Playboy Mansion, but it's not easy to get this - your hands on this kind of real estate in
this part of California, is it?
GOLD: Yes, in addition to just being the Playboy Mansion, this is one of the best estate sites in the country. You are on South Mapleton which "The
Wall Street Journal" says is the best street west of the Mississippi. It's on five acres on the north golf course at L.A. Country Club, you've
got a view. When you go there, it is absolutely stunning. So you've got one of the greatest properties - if it - even if it wasn't the Playboy Mansion and you wanted a property like this, you may never have
another opportunity.
LAKE: You know it is amazing - we're looking at an aerial view of it now as you speak. What's the - you know - a lot of - no matter how great your
asset, a lot of times hitting the market's all about timing. What is the real estate market like right now in California?
GOLD: The real estate market in California is hotter than it's ever been in history. So the timing is right, there's a lot of big sales all over
the world going on and real estate is a tangible asset that people really are interested in with all what's happening in the world. It's an
investment people want to make.
LAKE: I imagine this is an awfully hard decision for Hef himself given his long legacy there. Why now? Why do this? Why sell?
GOLD: That's a better question for Playboy. But I know they're going into the next chapter in their life. It's a really dynamic company and they're
making a few changes and this is one of them.
LAKE: Well I'm sure that a lot of people are looking at this with interest, Gary. I'm going to say it for you - only serious buyers need
apply. I'm sure everyone just can't get a tour of the grounds by saying they're
interested. Could be fascinated to see how it works out. Best of luck to you.
GOLD: Thank you.
LAKE: Now, would you spend $200 million to own the Playboy Mansion? Do you think it's worth the money, especially when you don't even get to live
there? You can tweet the show @questcnn and tell us what you think. We'll have a final check of the markets right after this.
(COMMERCIAL BREAK)
[16:58:25] LAKE: We want to bring you a final check of the markets. It was a wild start to the week at the corner of Wall and Broad in New York.
Just for -- when we were looking for a little peace and quiet, the Dow swung from triple-digit gains to triple-digit losses, only to return into
the green just into the closing bell. It eventually ended 52 points higher, enough to snap a three-day losing streak. Not sure how great people are feeling though. It's still down
more than 5 percent so far this year. The major stock indexes in Europe closed moderately lower after a volatile session there as well. The FTSE was the biggest loser - down nearly
7/10ths of 1 percent. Paris, Frankfurt and Zurich fared slightly better. U.K. drug maker Shire
tumbled 8.2 percent in London after it said it would merge with Baxalta for $32 billion.
It goes down as the first megamerger of the year. Oil prices meanwhile are in freefall. Brent Crude is currently down more
than 6.5 percent, hovering near the new 12-year low at $31.17 it hit earlier Monday.
Supply is high, demand is slowing and a strong dollar is making it expensive for buyers paying with other currencies.
Morgan Stanley has warned that if the U.S. dollar continues to strengthen, it could push oil as low as $20 a barrel. Crude is now down 65 percent
over just the past 18 months. That is "Quest Means Business," I'm Maggie Lake. Thanks so much for watching. Stay with CNN for the latest news.
END
