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Quest Means Business
Crude Oil Prices Drop; ISIS Strikes in Heart of Istanbul; Interview with Taleb Rifai of U.N. World Tourism Organization. Aired 4-5p ET
Aired January 12, 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 HOST: Market survived a rocky session with some triple digit gains, it's Tuesday the 12th of January.
Tonight, ring the alarm. There is talk of an emergency OPEC meeting as oil tumbles to $30.
A suicide bomber targets tourist in the heart of Istanbul, we'll speak live with the U.N.'s top tourism official.
And, re-hall (ph) about it, Rupert Murdoch has a famous new fiancee.
I'm Maggie Lake and this is "Quest Means Business."
(MUSIC)
Good evening. Tonight is the price that would have been unthinkable two years ago. The price of U.S. crude dipped below $30 a barrel before
bouncing back slightly. That $30 price is the lowest since 2003, and global prices are not far behind, Brent crude fell 1.5 percent on Tuesday.
That is down 70 percent over the past 12 months. It has been a brutal slide. The scale of the problem for oil producers becomes evident when we
look at how prices got there over the past decade.
Now prices rose early in the day. That is after OPEC's former president said a growing number of member states believe it's time for an emergency
strategy meeting. OPEC has, you remember, refused to cut its output even as prices have plummeted. But the UAE sees things different, the energy
minister there insisted OPEC strategy was working and shouldn't change. His comment pushed prices back down.
Emmanuel Kachikwu who was OPEC's president in 2015 served as Nigeria's oil minister. He spoke earlier with CNN's John Defterios and predicted prices
will rise eventually.
(BEGIN VIDEO CLIP)
JOHN DEFTERIOS, NIGERIA'S OIL MINISTER: I don't expect to see going to the 20s, I expect to see in those ranges of 30s, within month, two months, I
expect to see to begin to climb.
I feel optimistic that it does not sustain, at an average 40 to 50 barrels type level. But (inaudible) not too much of supply but I think would have
(inaudible) 31, 32, potentially 30 now, was -- in the horizon.
(OFF-MIC)
EMMANUEL KACHIKWU, CNN CORRESPONDENT: With the presidency of OPEC, and mind here, you had a very divided meeting in December, in fact you almost
had a mutiny. But what happens at this stage and what triggers an emergency meeting, do we see one at the end of February, many are
suggesting.
DEFTERIOS: I expect to see one, there's a lot of energy around, one obviously admittance. We'll make it -- unless you have the protagonist
reach on common positions. But ultimately OPEC is a union of the interest of members. I think majority of the members are beginning to take, you
know, in the oil markets environment and their profits are really getting shattered, it's something needs to keep.
And as for the Latin motion (inaudible) surprising because there wasn't a drive for an emergency meeting.
KACHIKWU: Does it change the Saudi Arabian position with the support of three other Arabian Gulf producers? Has it gone too far, the Saudi
strategy to fight for market share?
DEFTERIOS: I would say that for us that policy is going too far. We need to sit back and say how can we balance, we need to protect (ph) market
share. We need it for survival of the business itself and so other (ph) countries who own this business themselves. And I think the majority of
the people, not the majority in terms of the volume that they produce but majority in terms of membership are beginning to feel that they must not
just sit back.
And, have a decent dialogue again once more without this sort of tension that we have...
(OFF-MIC)
KACHIKWU: Well you raise a very interesting point, you can have dialogue but does it lead to action? Will Saudi Arabia give up some of that, almost
1.5 million barrels that it acquired in the last two years, will they change policies is the real question.
DEFTERIOS: I think ultimately for interest of everybody, some policy change will happen. Now, will the amount of barrels that you can take up
(ph) (inaudible) necessarily make that much of a dramatic difference? Probably no, but I think that the symbolism of an action is even more
important that the balance that go to (ph) the market.
So the symbolism for me, they're more important than even the numbers is numbers. And that symbolism is essential to be able to, they're going to
be able to have a meaningful dialogue with people like Russia or the rest. As long as Russia sees kind of, going (ph) everybody on their own toe, so
they're not going to miss (ph) another -- hold that conversation.
KACHIKWU: And so if OPEC took action, do you think Russia would come off the throttle in your view?
DEFTERIOS: (Inaudible) action, Russia is willing to talk. But if OPEC were to sit back and say, look, I think the time has come (inaudible) just
sitting here, we'll have a dialogue with Russia.
(END VIDEO CLIP)
LAKE: Now as we mentioned, the oil prices have plunged, 70 percent over the last year. Some of the world's biggest banks say, they have further to
fall.
[16:05:04] Goldmann Sachs led the way last year of the doom's day scenario that price crude at $20 a barrel. The bank says that price level could
finally force a cut in production. Morgan Stanley echoed that forecast on Monday, analyst there said a 5 percent rise in the value of the dollar
could push oil down between 10 and 25 percent. Standard Chartered has taken that even further, the bank believes oil could touch the $10 a barrel
mark this year.
The fallen oil price is squeezing companies on Tuesday, BP announced it would cut some 4,000 exploration and production jobs over the coming year.
BP shares fell 1.5 percent on the news.
Well Alan Valdes, the Director of Foreign Trading and DME securities and he joins me now. Alan these markets are moving so swiftly right now. I want
to ask you a question, when we have seen oil plummet in the past, it is usually spooked the equity market. Today we see a disconnect, what's going
on?
ALAN VALDES, DIRECTOR OF FOREIGN TRADING AND DME SECURITIES: Well it always disconnected at the very end of the day and that was basically
transport, we saw a little pop in transport, transport usually lead to doubt and also shortcoming. We saw a lot of guys, we show at the market
when we were up 192, they saw it come down to $-42 and then it got back up a little. No one wants to go home long (ph) anymore, so they're just going
to get out of their positions.
LAKE: So no real change.
VALDES: It was just technical, yeah.
LAKE: This is -- we're starting to -- we're talking about the forecast for oil, a lot of these big banks coalescing to $20, that's not the only thing
we're saying, we're trying to hear headlines, RBS is all over the news today saying, sell everything, get out of everything. Is that a realistic
prudent thing to do or is that sort of soaking unnecessary panic? It seems very dooms day to say that.
VALDES: Yeah, I think RBS just -- that was a silly statement. I feel really, a little over the top. I mean they have problem before the
statement so I don't know if that's one of the reasons they said that. But I think in general, yes the market could...
LAKE: But Jesse Morgan also coming out saying...
(CROSSTALK)
VALDES: Right but not -- not liquidate everything.
LAKE: Right.
VALDES: I mean that phrase is kind of worrisome to traders especially. But now you're seeing them sell on the rallies, not buying to dips anymore
so you've seen -- and remember, the last eight years, we have the Fed. So bad news for Wall Street -- bad news for Main Street was good news to Wall
Street. Now, bad news is bad news.
LAKE: And there's no one coming riding to the rescue to sort of...
VALDES: No.
LAKE: ... and support the market in exactly the same way. Are things really that bad? I know we're looking at oil and job cuts for the energy
sector. I know that we're worried about China but we have good job both here, these gas prices may -- we were all talking before we got on air for
the U.S. consumer which would mean a lot to the global economy, fantastic news, we're filling up our car for $20.
VALDES: Yeah, 100 percent right. And you bring up a good point, last week that 292,000 job summit, it's great. I mean, we always say, the most
critical number is the unemployment number and we got a great jobs number. Yeah oil could go to $10, I doubt it, I think, you know, you'll see kind of
getting to $20 range and then up from there. But, no, it's bad but it's not, you know, you're going to see a depression by the spring.
LAKE: I've been talking to auto executives because they're at the Detroit auto show, and they sound upbeat, they say, we think things are good,
consumers in good shape, we were also upbeat about China, how important is that information coming from chief executives, that guidance is going to be
during earnings period because it's starting.
VALDES: Yeah, earnings starts this week. So yeah, it's very important. I mean, earnings are going to be critical especially for the multinational,
so let's see how they do. I mean, we think we were having it tough, I mean, look at Europe, they had to push China and other parts of the world
where a multinational saw, that could have a tough, tough quarter coming up. But I think overall the United States is in a good position, yeah
we're getting beat up a little right now but I think overall by the end of the summer we'll be looking fine.
LAKE: Some people look at that 6 percent drop in the first week, it's just the Dow not the S&P 500 but everyone is so scarred (ph) from loosing all of
their money during the financial crisis and they think, if there's even a chance it's going to happen, maybe I should get conservative. Everyone's
portfolio is different but what mindset should investors have right now Alan?
VALDES: Well I think, you know, it depends on your timeframe. Like I said, I mean, if you're ready to retire and get out of the market, then
maybe you missed your chance. But if you're young, now is the chance to buy, everything is on sale, I mean the market slows (ph) $1 trillion this
year alone, was it 9 days, 10 days into it? So, it's -- in fact on the Macy's and get them sale done (ph).
LAKE: Yeah.
VALDES: There's a lot of stuff I've been looking -- I mean there's great buys out there. I would pick the companies you like, make sure they're
good companies, and if you buy junk you're going to sell them. But look at great companies, good time to buy.
LAKE: It is hard and you have to not need that money right away, but if you look at during the financial crisis, boy if you had the nerve to step
in there you made an...
VALDES: Without a doubt.
LAKE: ... it's hard these days but you have to keep long-term in terms of budget. Alan, great to catch up with you, always good to get that veteran
view.
VALDES: Thanks Maggie.
LAKE: Interesting perspective. Thanks.
Now U.S. stocks went on a roller coaster ride again today, we've just been discussing, I will show you numbers. The Dow rose then fell before ending
the session with triple digit gain. Shares of United Airlines fell 2 percent.
[16:10:05] The airline reported the terror attacks in Paris may have hurt revenues in the 4th quarter.
In Europe stocks also ended on a positive note after a series of encouraging earnings report. Shares of U.K.-based retailers grow sharply
on strong sales data. (Inaudible) shares rose nearly 5 percent, the automaker says strong sales in Europe offset weakness in emerging markets.
Now a blast targeting tourist in Turkey has claimed 10 lives, we'll have the very latest from Istanbul.
(COMMERCIAL BREAK)
Tonight, ISIS has struck in the heart of Istanbul's tourist district, at least 10 foreigners were killed and many more people were wounded in an
explosion set off by an ISIS suicide bomber, the blast took place in- between of two of the country's most famous destination. Now, German Chancellor Angela Merkel says at least eight Germans are among the dead and
the number may rise.
Turkish official said the bomber was from Syria and not being tracked by authorities, referring to ISIS as Daesh. Turkish Prime Minister said, his
country will not back down from the fight against terror.
(BEGIN VIDEO CLIP)
RECEP TAYYIP ERDOGAN, TURKISH PRIME MINISTER (through translation): We now know that the perpetrator of the attack was a Daesh member of foreign
origin. And I wanted to express once again that we will continue our struggle against Daesh terror organization with the same determination.
And, I would like to repeat that once again that as they continue, we will continue our fight against terror in the same firm attitude, we will never
compromise, not one single inch.
(END VIDEO CLIP)
LAKE: Arwa Damon has been following this story and she is live in Istanbul for us. And Arwa, when describing the Turkish officials they're saying
that this is an attack against humanity.
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: They are, and Turkey also is saying that not only is it going to remain steadfast when it comes
to the fight against ISIS but that is very vital at this stage that not only Turkey remain unified but that there is some sort of global effort
when it comes combatting terrorist organizations. Now, this particular attacker you are mentioning they're not being tracked by Turkish
authorities, even through at any given time they have countless individuals under surveillance.
This particular individual, we do believe according to what we are being told from Turkish authorities, only just recently crossed from Syria into
Turkey, and this has been one of the many challenges that the intelligence apparatus here does face when it comes to trying to determine exactly who
it is who posses a threat because there's a constant flow across the border. There are around $2 million Syrian refugees here and country and
tracking everybody, walking down that incredibly porous border, it's just about an impossible task.
This attack not only setting light on Turkey's ongoing vulnerabilities when it comes to security but also seemingly, this is ISIS sending a message not
just to Turkey but also beyond these borders. Something that the terrorist organization does very much intend to do and that is to try to soak the air
wherever and however it can. This attack, all of those who were killed we are told by Turkish authorities were themselves foreign nationals, this
very much a soft target.
[16:15:10] And we are still here in the city in Istanbul, historic district also one of its top tourist destinations, it's not the main tourist
destination. Those who did lose their lives in this horrific attack, most of them were part of one particular tour group that have come from Germany.
And moving forward, this is going to put a lot of pressure on Turkish authorities, not only to just reassure their own population when it comes
to security but also reassure those who would be thinking of coming here to visit the country is in fact safe, Maggie.
LAKE: And Arwa, we can see from the weather that you're battling a fitting edge (ph), what is just a somber day there. This is an area, as you
mentioned, a soft target, a tourist area that has a heavy security presence anyway. What do we anticipate from the government in terms of changes and
strategy or policy coming from Erdogan?
DAMON: Well, look, in the last few months especially there has been a pretty significant crackdown when it comes to trying to control the various
difference challenges that the country faces on the security level. Because, Turkey is not just dealing with ISIS, it is also dealing with the
end of the ceasefire between the Turkish government and the Kurdistan Workers Party, the PKK, the pro-Kurdish separatist group with pretty fierce
battles being waged in the country southeast. It also faces a terrorist threat from other smaller organizations.
And so, especially over the last few months there have been widespread, countrywide massive sweeps or 100s of individuals accused of having ties to
terrorism have been picked up, there has been an intensive fight effort to try to put even more people under surveillance, to try to pay very close
attention to those who are trying to come into Turkey whether it's from the airport or other legal transit areas or weather is it along again, the
highly porous Syrian-Turkish border.
So, we do know that the authorities say that they're doing all that they can and at this stage, they're really just going to have to up those
already preexisting efforts. Because, if anything, this is a country that very much is aware of the fact that it does face a security threat on
numerous fronts.
LAKE: And it's an enormous challenge that you're talking about. Arwa Damon, thank you so much.
The Tuesday's blast is just the latest attack that appears to deliberately target internal tourists. European and Russian authorities believe a bomb
brought down Metrojet Flight 9268 over the Sinai at the end of October. And in August a bomb targeted a popular Hindu shrine in Bangkok. In June a
gunman opened fire a Tunisian beach resort.
German Chancellor Angela Merkel said attacks like these threaten our way of life.
(BEGIN VIDEO CLIP)
ANGELA MERKEL, GERMAN CHANCELLOR (through translator): Today it hit Istanbul, but before that it was Paris and before that it was Copenhagen,
Tunisia and so many other places. Internal terror chooses the places of its attacks in different ways, but the target is always the same, our life
and freedom and our free society.
(END VIDEO CLIP)
LAKE: Taleb Rifai is the Secretary General for that U.N. World Tourism Organization and he joins me from Madrid. Thanks so much for being with
sir. These are enormous challenges as we were just lying out, and Turkey again, calling for the international community to work together. What can
be done to ensure the safety of tourist?
TALEB RIFAI, U.N. WORLD TOURISM ORGANIZATION SECRETARY GENERAL: Well, a lot can be done. I think we need to just establish the principle and the
fact that this is a global crisis and it should be dealt with as a global level. No nation alone can be -- no places immune and it's a challenge if
we keep be reminded that every country under sun must cooperate, deal with it. Security measures must be shared, intelligence must be shared, and
cooperation must be extended to all countries, there is no other way.
I think if we tend to just think that is happening in Turkey or Thailand or in Egypt or in France or wherever it is. If those countries will deal with
alone it will never work Maggie.
LAKE: When you're talking about these efforts in these different areas, should it be spearheaded by government? What's the role of the private
sector here?
RIFAI: Well, it should be spearheaded by government because security is government's responsibility. But the private sector must have a say, and
we have always been saying that tourism in particular and tourism facilities and infrastructure are very important in battle (ph), they're
proving to be a very tempting target to these forces of darkness that trying to bring us back thousands of years behind.
And it's important that the voice of tourism, whether it's government represented in ministries of tourism or the private sector is sitting on
the table when security measures are concerned and are discussed. It's very important that the voice, thousands of years behind, and it's
important that the voice of tourism whether it's government, represented ministries of tourism, all the private sector is sitting on the table when
security measures are concerned and/or discussed.
It's very important that when we talk about security, we don't forget that we need to very much protect the very industry that's concerned with that.
We can't just go about security and try -- and end up killing the very thing (ph) that we're trying to save. The tourism voice must be heard and
must be on the table.
LAKE: I was at a conference some months ago and there were so much hope and enthusiasm for the idea of tourism being a driver of growth, in
countries that badly needed, in areas where youth unemployment is high. Will this reign of terror that we're seeing is targeting a soft target, I
mean, people on a tour group trying to enjoy a holiday, will that reverse any gains or will that put a dent in those plans to try use tourism to
really grow these economies?
RIFAI: I don't Maggie, I -- World Bank conference, I was supposed to be there with you. There is always hope when people of tourism get together.
Now in spite of all of these we will never do so. Tourism has proven to be such a resilient industry that every time there is a crisis, it comes back
again much stronger that it was. In spite of everything Maggie, tourism continues to grow, it grew at 5.2 percent last year and it even grew in the
last part of the year where there were particular security threats at the 4.8 percent.
So, I am very confident that this will not be the case and the trend of people wanting to travel or wanting to preserve this way of life in their
culture will never be reverse (ph). Turkey in particular in this case, is they're very well-known tourism destination. It's the 6th most visited
destination in the world, more than 14 million international tourist come to Turkey. 12 percent of its GDP is from tourism and it will continue to
do that, it maybe affected temporarily on the very short term but we are very, very confident that this will not affect the long-term established
tradition of it being a very hospitable and inviting country, just like any other country that was targeted and hit.
LAKE: Taleb, thank you so much for joining us and hearing your views, we so appreciate it.
RIFAI: Thank you so much Maggie, thank you.
LAKE: We got some breaking news just coming in from the Pentagon in Washington. Two U.S. Navy boats have come into Iranian custody. Iran has
told the U.S. that the crew onboard, 10 American sailors will be promptly returned. A U.S. defense official tells CNN the situation is expected to
be quickly resolved. We will have more on this breaking news story just a few moments, stay with CNN.
(COMMERCIAL BREAK)
LAKE: Let's bring you up to date, need to get to breaking news just coming in from the Pentagon in Washington. Two U.S. Navy boats have come into
Iranian custody. Iran has told the U.S. that the crew onboard, 10 American soldiers will be promptly returned. A U.S. defense official tells CNN the
situation is expected to be quickly resolved, we will have more on this story in just a few moments.
Meanwhile, Volkswagen is facing a new major roadblock as it tries to restore its name in the United States. Regulators in California have
rejected the automaker's plan to fix its diesel engine. The California Air Resources Board called the proposed fix incomplete. They wrote, Volkswagen
that they need to make it right. Today's action is a step in the direction in assuring that will happen.
(COMMERCIAL BREAK)
[16:30:56] MAGGIE LAKE, CNN INTERNATIONAL BUSINESS ANCHOR AND CORRESPONDENT, FILLING IN FOR RICHARD QUEST: Hello, I'm Maggie Lake.
Coming up on the next half hour of "Quest Means Business," Hollywood meets Beijing as Chinese investors buy up a massive movie studio.
And why today's top story for Rupert Murdoch is a love story. First though, these are the top news headlines we are following for you
this hour. Some breaking news just in from the Pentagon in Washington, two U.S. Navy boats have come into Iranian custody. Iran has told the U.S. that the crew
onboard, ten American soldiers, will be promptly returned. A U.S. defense official tells CNN the situation is expected to be quickly resolved.
Turkey's prime minister says ISIS was responsible for a devastating suicide bombing in Istanbul. At least ten foreign tourists were killed in the
heart of the city's historic district. At least eight of them were German. The Turkish president condemned the blast and called for solidarity.
(BEGIN VIDEOCLIP)
RECEP TAYYIP ERDOGAN, TURKISH PRESIDENT, VIA INTERPRETER: You are either on the side of the Turkish government or you're on the side of the
terrorists.
(END VIDEOCLIP)
LAKE: The U.N. says its aid workers were moved to tears when they saw starving children in the Syrian city of Madaya. Aid convoys reaching the
besieged city found hundreds of people on the brink of starvation. Two northern cities that support the regime also received aid. Experts
worry starvation is being used as a weapon in Syria's civil war. The price of U.S. crude dipped below the $30 a barrel mark before bouncing back slightly. That $30 price is the lowest since 2003.
Global prices flipped as well. The Nigerian oil minister said some OPEC members want emergency talks to rethink the Cartel's strategy.
U.S. President Barack Obama will deliver his final Sate of the Union address Tuesday night. The White House is promising a non-traditional
speech that may focus on Mr. Obama's legacy. He's still expected to talk about key policy points like gun control and fighting terrorism.
The U.S. Vice President Joe Biden has praised Bernie Sanders' campaign to become president. The Senator from Vermont has polled closer to Hillary
Clinton in the race to become the Democrats' nominee. Speaking to CNN's Gloria Borger, Mr. Biden said Sanders has struck a chord on the issue of inequality.
(BEGIN VIDEOCLIP)
JOE BIDEN, U.S. VICE PRESIDENT: Bernie is speaking to a earning that is deep and real, and he has credibility on it.
And that is the absolute enormous concentration of wealth of a small group of people with the middle class now being able to be shown being left out.
It used to be a basic bargain - if you contributed to the profitability of that enterprise, you got to share in the profit.
That's been broken. Productivity's up, wages are stagnant -
GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: But Hillary's talking about that as well.
BIDEN: Well, it's - but it's relatively new for Hillary to talk about that. Hillary's focus has been other things up to now and that's been
Bernie's - no one questions Bernie's authenticity on those issues.
(END VIDEOCLIP)
LAKE: Let's get an update now on that breaking news from the Pentagon. Two U.S. Navy boats have come into Iranian custody.
Chief U.S. security correspondent Jim Sciutto joins us now from Washington. And, Jim, what do we know about this?
JIM SCIUTTO, CHIEF U.S. SECURITY CORRESPONDENT: Well Maggie, this is certainly a dicey situation. What we know is this - is that two small U.S.
Navy boats with ten sailors onboard were transmitting from Bahrain - from Kuwait, rather - to Bahrain when they were held/detained by Iranian naval
forces and that sparked a scramble. U.S. diplomats speaking to the Iranian side about their release - getting them released as soon as possible. John Kerry getting involved, speaking
to his Iranian counterparts. [16:35:03] No confirmation yet as to when they will be released, although Iranian authorities are saying that they will be allowed to continue their
journey. The question here is why they were detained. The possibility that those U.S. sailors strayed briefly perhaps into Iranian territorial waters, that
has happened before. You may remember a case with British sailors in 2007. They were detained for several days.
But I'll tell you, in this country on the night of the President's final State of the Union speech, a speech in which he's very likely to mention
the Iranian nuclear deal which is likely to be implemented as soon as this weekend with those economic sanctions against Iran lifted. This would be
very interesting timing, no question. So a very serious situation, those U.S. sailors held by Iran for a period of time. We don't know how long U.S. diplomats, the U.S. defense
department working now to get them released. Some word from the Iranian side that they would be allowed to continue their journey. So the possibility that this could be resolved quickly but
certainly far from confirmation of that. We're watching it very closely.
LAKE: I'm sure a lot of questions are going to be asked about what they were doing so close if they did veer into the territory.
It is going to be very interesting, Jim. Very dicey but there seems to be an effort in all the language of the brief statements that we're getting to
indicate that this is going to be resolved quickly. Sounds like all sides are working to make sure that this doesn't become more of a diplomatic blow up so close to those sanctions being lifted.
SCIUTTO: That's certainly the impression right now. But just the very fact of the timing on the night of the State of the Union speech and days
away from implementation, it has already sparked criticism from corners where you might expect it here.
We had a Republican lawmaker on just a few minutes ago saying this shows in effect that Iran can't be trusted. Remember in Iran itself you have
divisions as well. You have divisions between the government of Hassan Rouhani but also hardliners there. Many hardliners in the Revolutionary Guard Corp and at
least Iranian news services are reporting that it was IGRC -- that's Iranian Revolutionary Guard Corp which has in effect its own arm of the
military, that it was them that picked up these U.S. sailors. No confirmation of that but it could be possible that this is a reflection
of a division within the Iranian government over certainly its view of the U.S. but also of this upcoming nuclear deal.
LAKE: Excellent points. Mixed messages in a very, very complicated situation I know you guys are going to be discussing in the upcoming hours.
Thanks for bringing us up to date, Jim.
SCIUTTO: Thank you.
LAKE: Now as Jim mentioned there, this all comes on the night of U.S. President Obama's final State of the Union address.
Tonight our coverage begins in just a few hours from now. It all starts at 2 a.m. London time, 3 a.m. Central Europe, and if you're asleep by then,
you can watch the replay on Friday morning. That airs at 10 a.m. in London, 11 a.m. Central Europe right here on CNN.
Now in the wake of Monday's suicide bombing in Istanbul, several countries have updated their advice to travelers hoping to visit Turkey.
Germany issued a travel advisory today asking its citizens to avoid larger gatherings and tourist attractions for now.
Denmark also urged people to avoid crowds outside tourist attractions. The U.K. says citizens in effected areas in Istanbul should follow the instructions of local security authorities.
I asked Simon Calder, travel editor for "The Independent" if we are entering a new, more dangerous era for travel.
(BEGIN VIDEOCLIP)
SIMON CALDER, TRAVEL EDITOR, "THE INDEPENDENT": It seems as though we're in the most dangerous of times but in fact if you look at the numbers over
the past 20 years, the number of international trips has risen by something like 60 percent while, in general terms.
The number of travelers who come to Greece and the usual way that that happens, sadly, is road accidents and drownings rather than terrorist event
has stayed roughly constant. So we're probably at the safest time ever for international tourists. But I absolutely agree it doesn't look right night (ph).
LAKE: Do you think the travel industry needs to do anything to help reassure passengers? How should they be handling this?
CALDER: Well I'm not happy with the way that the travel industry has been addressing this very serious issue. In particular, a lot of countries'
tourism ministers have come and said, look terrible things happen anywhere rather than addressing the fact that there are terrorists attacking
tourists in their countries specifically because they are terrorists and the aim is to destroy the tourist industry.
I want to know what those governments are really doing about it. And I actually want the travel industry to be more confident about saying, look
everybody, sure it's an anxious time, sure we feel the most profound sympathy for the families of the people who have been harmed, but actually
this is a great time to go traveling. [16:40:07] And you, lucky people, are the generation who have the broadest horizons in human history.
LAKE: When we are now traveling around, if we decide that we are going to proceed with our plans and go, would you expect to see more visible
security measures? Does that make people feel better? Should hotels think about doing that?
Even if it is just something that addresses confidence as opposed to, you know, making a real dent in the level of activity. Should that be more of
a priority?
CALDER: Great question. I'm not in favor of theater for theater's sake - just to make people feel better. I am in favor of what's happened in Paris
since the attacks in November there. I was just there last week, had a fantastic time. It's a great city, hasn't lost a single bit of its spirit, its beauty, its entrancement.
However, yes, there are - every attraction you go to, many of the shops, hotels and so on there are bag searches. And that - I don't think its
searches is really saying to anybody who has the appalling intention of trying to stage another attack.
It won't be that easy. Sure, we are a tolerant, open, liberal society but we are going to do what we can to carry on living as normal while thwarting
any possible future attacks.
(END VIDEOCLIP)
LAKE: China's richest man has bought his way into Hollywood. We'll tour a Chinese production set and find out how this growing industry plans to
takes its films to a global audience.
(COMMERCIAL BREAK)
LAKE: The CEO of Ford says he's not worried about the economic volatility in China and expects the auto industry will do just fine there in the year
ahead. Ford is looking to fully establish Lincoln, its luxury brand in China, by the end of 2016. I spoke to Mark Fields from the Detroit Auto Show and
asked what kind of buyer Lincoln is targeting.
MARK FIELDS, FORD MOTOR COMPANY CEO: This is our interpretation of luxury, and it's really about an elegance , it's around effortless power and it's
around a serenity in a vehicle and a brand that has warm, human touches with a contemporary design.
And we think that's unique, a unique niche to carve out in the luxury automobile business.
LAKE: These are the kind of brands I know that have been doing really well - that end of the market getting a lot of traction in China.
There have been a lot of concerns about that falling out this and that economy really slowing sharply. How concerned are you and what will that
mean for Ford? Are you making any changes?
FIELDS: Well when you look at, speaking of Lincoln specifically in China, we just launched in Lincoln at the end of 2014 in our first full year of
operations in China, Lincoln was the fastest growing luxury car brand in recent memory.
So we're off to a good start without a full product line up yet or a full distribution network which we're still building and should have built out
the end of this year. And as we look at the China market, you know, clearly that market's going
through some volatility as it transitions from an industry and investment- led economy to one that's more consumption led. But we do think that the car market will be supported this year and potentially be up slightly because of the consumption tax reduction that
the government put in place the end of last year to stimulate car sales?
[16:45:09] LAKE: Yes, as they try to move that economy more toward a service consumer-led economy. Mark, you had record sales here in the U.S.
- a record sale year in general for autos. Can we - can you maintain that sort of momentum and where is that growth
going to come from? Is it going to be trucks and SUVs once again?
FIELDS: Well we do see 2016 looking very much like 2015. We just - we think the economic fundamentals in the country support a continued high
level of industry sales, could go up a little bit this year, but we still think a good couple of years in front of us.
And the main piece of that is looking at the health of the consumer. You look at last week's employment report. Employment was growing, wages are
growing. You combine that with low energy costs and low inflation, and we think that puts even more spending power into consumers.
(END VIDEOCLIP)
LAKE: From the jungles of "Jurassic World" to the void of outer space in "Interstellar," and now to China. The American movie studio Legendary
Entertainment has been sold for $3.5 billion to China's richest man, Wang Jianlin.
The deal is a sign of the growing power of the Chinese audience. Matt Rivers has our report.
(BEGIN VIDEOCLIP)
(SCENE OF A BRUTAL INTERROGATION)
MATT RIVERS, CNN CORRESPONDENT: A brutal interrogation, a prisoner crying out during China's 1940 civil war. Not far away, a grieving wife shouts
for her fallen husband. Down the steps from her, a platoon of soldiers marches into battle, and just around the corner, a martyr's execution during the Ching Dynasty.
We are on one of 30 different production sets going on right now in China's largest movie studio complex. It's in a city called Hengdian.
And while all of these might be costumes, the sets might be fake, the movie industry here in China is very, very real and it is growing.
The sprawling Qingdao Studios exemplify the overall growth of the film industry. Built in the late 90s and expanding ever since, dozens of films
are shot here each year. There's even a to-scale model of Beijing's famous Forbidden City.
In 2015, Chinese-made films grossed just over $4 billion U.S. dollars, a nearly 70 percent jump from the year before.
ZHANG PU'AN, FILM DIRECTOR, VIA INTERPRETER: The economy has developed and people are getting richer so they're spending more and more money on
entertainment, it's inevitable.
FIELDS: Zhang Pu'an remembers when that wasn't the case. He's directed films for 20 years and says the Chinese film industry is well positioned to
compete with the West. And China's footprint in Hollywood is growing. Dalian Wanda Group, the Chinese real estate and entertainment giant, announced their purchase of
Legendary Pictures, a major Hollywood studio behind blockbusters like "Jurassic World."
Wang Jianlin, the company's chairman and China's richest man, said the deal will allow greater distribution of Chinese films to international
audiences. Wanda already owns AMC Theatres, the second largest theatre chain in the
U.S. This kind of reach could help introduce Chinese-made films to a different audience.
WANG JIANLIN, CHAIRMAN, DALIAN WANDA GROUP, VIA INTERPRETER: If you want to make money, you need to make people like your movies.
Right now, Chinese-made films don't generate enough interest in America to be shown there. For that to happen, Chinese movies will have to find ways
to entertain American audiences.
FIELDS: Beijing only allows a limited number of foreign films into the country each year. Last year the foreign flix grossed about $2.5 billion
U.S. dollars. But out of the Box Office top ten, only three came from overseas.
PU'AN, VIA INTERPRETER: Hollywood is highly industrialized but it won't be number one for long. China will take over.
FIELDS: But to compete with Hollywood, China will have to export hits too. It will have to build up its own megastars and be capable of hauling in
"Star Wars"-like profit. At least for now though, it's a lofty goal, one that's far, far away.
Matt Rivers, CNN Hengdian, China.
(END VIDEOCLIP)
LAKE: And in another big China/U.S. deal, a Chinese online gaming company has bought a majority stake in the world's most popular gay dating app.
Grindr says it has more than two million daily users in 196 countries. Now it's raising funds for expansion with an investment from the Beijing Kunlun Tech Company. In a blog post, the Grindr founder described the $96
million injection as "a huge vote of confidence in our vision to connect gay men to even more of the world around them."
[16:50:00] It was a small announcement in "The Times" of London by the man who owns that paper. Rupert Murdoch is set to wed former model Jerry
Hall). We'll consider the implications it may have on the News Corp empire after a
highlight from "Make, Create, Innovate."
(COMMERCIAL BREAK)
LAKE: It looks like wedding bells will soon be ringing for media mogul Rupert Murdoch and former super model Jerry Hall.
Just two months after going public with their relationship, the couple announced their engagement the old-fashioned way - in the Births, Marriages
and Death sections of "The Times" of London. As Nina dos Santos explains, when it comes to the Murdochs, family and
business are closely intertwined.
(BEGIN VIDEOCLIP)
NINA DOS SANTOS, CNN ANCHOR AND CORRESPONDENT: More used to selling papers tan being in them, media baron Rupert Murdoch announced his engagement to
model Jerry Hall with this discreet notice in "The Times." The marriage will be his fourth and comes after a whirlwind four month
romance during which time the couple has made increasing public appearances.
Hall, a former supermodel and actress, spent more than 20 years with the Rolling Stones front man Mick Jagger, although in divorce proceedings
Jagger claims that they were never legally married. Murdoch has been single since 2013 when he divorced is former employee
Wendi Deng. Deng was famous for defending him in the face of a custard pie attack at
the height of the U.K.'s phone-hacking scandal.
STEVE HEWLETT, WRITER, BROADCASTER: Because the Murdoch family and the Murdoch business are so closely intertwined, it makes anything that happens
in the business and/or the family doubly difficult to deal with.
DOS SANTOS: Murdoch built his multi-billion dollar empire from humble beginnings after inheriting two small titles in Australia from his father
in 1953. A business which he turned in 21st Century Fox. With 12 percent of the shares but a 40 percent stake in the voting rights,
Murdoch's lifetime goal has been to ensure his family keeps control as he begins to hand over power to his children.
HEWLETT: It would appear that succession planning which is one of Rupert Murdoch's obsessions - he's always been absolutely clear that he wants to
hand the company to a member of the family - James Murdoch is sitting on as chief executive of 21st Century Fox like him sitting as chief executive of
news for News Corp - which is the newspaper interest and now to cap it all, - the icing on the cake - the announcement of the marriage to Jerry Hall.
DOS SANTOS: A match made in heaven? Well who knows? A match made in the media, that's for sure. Nina dos Santos, CNN London.
(END VIDEOCLIP)
LAKE: Now when you think of central bankers, you don't generally think of social media celebrities. Yellen and Draghi may not be Kardashian and
Bieber but a new study shows their online plot (ph) of followers is getting bigger.
(COMMERCIAL BREAK)
[16:57:45] LAKE: Central banks around the world are having their moment on Twitter. According to a survey by central banking publications, the top
ten central bank Twitter accounts grew by more than 50 percent last year. Seventy-two central banks now have accounts amassing over 2 million total
followers if you could be believe that. It's a tight race among the banks for the most popular Twitter feed
Narrowly beating out the Federal Reserve and the European Central Bank - drum roll - is the Bank of Mexico with 327,000 followers.
There appears to be no central bank bump for Twitter however. Twitter stock touched an all-time low in trade on Monday and is down around 50
percent in the last year. Now, U.S. stocks went on a rollercoaster ride on Tuesday. The Dow opened in positive territory then fell into the red.
It pulled out of triple-digit gain however at the very end of the session. Shares of United Airlines not participating - they fell 2 percent. The
airline reported the terror attacks in Paris may have hurt revenues in the fourth quarter.
The price of U.S. crude dipped below the $30 a barrel mark before bouncing back slightly. That $30 price is the lowest since 2003. Global prices
slipped more than 2 percent as well. The Nigerian oil minister said some OPEC members want emergency talks to
rethink the Cartel's strategy. That came on the same day that analysts at Standard Charter had warned crude prices could fall as low as $10 a barrel this year.
And an update on our breaking news this - from the Pentagon this hour. Two U.S. Navy boats have come into Iranian custody.
Iran has told the U.S. that the crew onboard, ten American sailors, will be promptly returned.
A senior administration official tells CNN there is absolutely nothing to indicate this was anything hostile on the part of any entity in Iran and
the situation is expected to be quickly resolved. All of this comes on the night of U.S. President Obama's final State of the Union address. Our coverage of that begins just a few hours from now.
And that is "Quest Means Business," I'm Maggie Lake. Thanks for watching. Stay with CNN for the latest news.
END
