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Quest Means Business
Investors Think Fed May Delay Rate Hikes; U.S. Unemployment Rate Falls To 4.9 Percent; Obama: Still Softness In Global Economy; Investors Speculate About U.S. Rate Hikes; LinkedIn Shares Nosedive On Growth Fears; Cheap Oil Drags Nigerian Economy Down; Clinton, Sanders Clash At Democratic Debate; Technology Heralds "Fourth Industrial Revolution"; WHO Seeks to Contain Zika Virus Outbreak; Super Bowl 50 and Fears of CTE; Iran Sets Eyes on Tourism. Aired 4-5p ET
Aired February 05, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[16:00:00] NINA DOS SANTOS, CNN ANCHOR: Trading has come to a close in New York with the Dow off by more than 200 points. It's Friday, February 5th.
(HEADLINES)
DOS SANTOS: I'm Nina dos Santos and this is QUEST MEANS BUSINESS.
Good evening. Tonight's low unemployment but slow jobs growth in the world's biggest economy. The United States has created 151,000 jobs in the
month of January. That was fewer than expected.
It also fell far short of the previous month's total. But there was a big plus here. Namely, the fact the unemployment rate itself fell below 5
percent. That means it's now at its lowest level since the financial crisis eight years ago.
And what's more is that wages also rose. The average worker took home about 2.5 percent more than this time last year. Wall Street certainly
seemed a little bit uncertain as to whether or not this is a good or bad set of numbers but investors agreed on how to respond.
That has been to sell. The Dow, as I was mentioning before, closed lower than 250 points lower at the end of the trading week. The Nasdaq for its
part is off by more than 3 percent.
Investors are now worried that these figures mean that the fed is likely to take them as encouragement that America's economy is strong enough for it
to raise interest rates once again.
Joining me now to discuss the implications of the month that was for payrolls and the month that will be going forward is Anthony Chan, chief
economist at Chase. He joins us live from New York this hour.
Anthony, good to see you. Thanks for coming on the show. This is a bit of a perplexing report, isn't it? On the one hand, it's worse than people
were expecting. It's much weaker than last month's figure.
But it does show some sign of consistency, doesn't it, that things are turning around for America.
ANTHONY CHAN, CHIEF ECONOMIST, CHASE: It really does. What we see here is an employment picture that is improving. In the past, people would argue,
there's a lot of people dropping out of the labors force.
But over the last 12 months, you've seen over 1 million people joining the labor force and we are starting to see really strong job creation.
If you are going to pick something that's disappointing in this report is that wages are still not in the 3 percent to 4 percent range that the Fed
Chair Janet Yellen wants to see, but it is picking up.
It is now rising at 2.5 percent, and that's pretty strong. So by and large, this is a report that shows pretty good strength, maybe not as much
as the market wanted but pretty good.
Now, one of the things that is making the market nervous, they really wanted a number that was strong enough to basically dispel fears of a
recession, but not so strong as to suggest that the Federal Reserve is going to go out there and raise rates as aggressively as they project it.
DOS SANTOS: How psychologically important is it, the fact that the unemployment rate is now down below the 5 percent mark?
CHAN: I think it's very important to see that. The most important part of that is that it's not occurring because the labor force participation rate
is declining. In fact, it has increased for two consecutive months.
In the labor household survey that's used to compute the unemployment rate, you had over 600,000 new jobs being created. It's true that after you
adjust the population, the numbers are a little over 400,000 but it's still a very strong number.
So when you see the unemployment rate number fall below 5 percent and it's not because people are dropping out of the labor force, which they didn't.
It is significant. That's why this report tells you there is solid strength out there.
DOS SANTOS: So the next question is obviously do you think that the fed will be raising rates any time soon? Looking at these figures because, as
you said, it is a sign of strength, but on the other hand that wage growth isn't really what Janet Yellen wants to see. It's about half of what she
wants to see.
CHAN: Well, it is significant in the sense that it shows a lot of strength, but remember the Federal Reserve is not only looking at
employment. They're look at a lot of things. They're looking at the global financial markets.
Bill Duntley (ph), the New York Federal Reserve president also said they're looking at where the financial conditions are tightening. You look at the
global equity markets.
Look at the U.S. markets selling off today. Look at global markets as they have been also selling off. All those things tell me that would cause the
Federal Reserve to pause a little bit.
I think the Federal Reserve is going to raise rates this year anywhere from one to two times. Not the four times they projected earlier. It really
tells me the labor market is strong enough to do something. When you look at the entire picture, not strong enough to support Federal Reserve
tightenings.
DOS SANTOS: Are these the right type of jobs that America is creating?
CHAN: I think it is. You're starting to see the higher paid jobs starting to gain some traction. You saw, in fact, quite a number of construction
jobs. A lot of people thought -- these are high paying, by the way.
A lot of construction jobs last month occurred because of the weather and people said it would fall off. It really didn't fall off.
[16:05:05]Manufacturing, another component that is also relatively speaking a high-paying component. People thought because of the manufacturing
services there isn't going to be any manufacturing jobs and yet it was pretty strong.
So you are seeing some really good strength in some of these jobs that are now starting to offer some higher wages, which is, by the way, another
reason why the average hourly earnings number ticked up.
Part of it is, of course, some higher minimum wages, but also because some of these so-called higher paying jobs are kicking in. Keep in mind, when
the labor market starts getting tighter, you start to see wages picking up and jobs start paying a little bit higher wages.
DOS SANTOS: Yes, you certainly do. Anthony Chan, great to see you as always. Thank you very much for that. The chief economist at Chase.
Now, the U.S. President Barack Obama says that his economy has the strongest and more durable economy anywhere in the world, but he also said
that no economy, not even the United States, is isolated from what happens elsewhere around the globe.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: There is softness in the global economy. China's going through a transition. Europe's
economy is still slow. A lot of the emerging markets are challenged.
So that's all creating head winds for a lot of U.S. companies who do business overseas. It makes it more difficult to sell exports. We've got
to pay attention to this and make some smart steps this year to continue progress.
(END VIDEO CLIP)
DOS SANTOS: Let's discuss some of these challenges that the president mentioned there with Jonas Prising. He is the chief executive of
ManpowerGroup, which is the recruitment and temporary staff agency joining us live from Milwaukee, Wisconsin today.
Thank you very much for coming on the show. Are you seeing evidence that the employment market is much stronger in America these days? Give us some
examples here because you're really at the frontline.
JONAS PRISING, CEO, MANPOWERGROUP: We could see that the American economy's job machine cooled down a little bit in January but, still, as
the previous person on the program said, it's the lowest unemployment rate we've seen in eight years. Wage inflation was robust.
So I think that all in all, the economy is still generating a number of jobs that is sufficient to keep the unemployment rate to come down. So at
such, at 4.9 percent, it's a very strong labor market certainly compared to the global situation.
DOS SANTOS: Are you seeing that people are going for fewer temporary jobs as well? Because that's one of the big things you would notice here. It
looks as though in this employment report, people are managing to secure more permanent jobs.
PRISING: Well, at this point of the cycle there is still growth in temporary jobs. So that is still growing. Although in the January number,
we saw that the growth was only 3.2 percent so it has slowed down a little bit.
But it's still a -- part of the workforce that is increasing. We can see not only in the U.S. but in many parts of the world. As we were talking
about earlier, the U.S. is strong, but Europe has also seen, both in the Eurozone and in the E.U., unemployment drop during 2015.
DOS SANTOS: But what an interesting time, where sort of the kids of the '90s who graduated from college, I count myself only just among that cohort
there, we are sort of starting to reach peak employment age.
You've got the baby boomers coming offline and the millennials at the other end of the cycle. How do you view the individual prospects rule these
different age categories too? Because that also feeds into the earnings perspective, doesn't it?
PRISING: It does speak into the earnings perspective because we have youth unemployment on a global level still at very, very high levels in
particular still in Europe. And that unemployment is well above 20 percent where as in the U.S. it is closer to 11 percent or 12 percent.
So unemployment for young people, coming into the workforce is still unacceptably high. There are generational differences. We can see that
because the workforce in many parts of the developed world is shrinking and notably Germany and Japan have rapidly shrinking workforces.
In those cases, the availability of workers to be able to drive economies to grow is much, much less today and will continue to shrink quite rapidly.
So it is the case that this is a time when labor markets are affected not only by cyclical business cycles but also by structural changes in the
labor markets of which demographics is an important one.
DOS SANTOS: I want to come back to the United States economy in particular. As the CEO of one of the biggest recruitment companies, what
would be your message to Janet Yellen and her contemporaries at the fed?
Because obviously if they do decide to raise interest rates once, twice, later on this year because they feel the U.S. economy is strong enough,
that will strengthen the dollar. We keep hearing that U.S. companies are saying they're suffering because the dollar is so strong.
[16:10:03]PRISING: I think it's pretty evident that companies that are exposed to the export markets are having a much tougher time with such a
rapid increase in the value of the dollar.
And clearly if any rate hikes are strengthening that dollar further or those hikes are coming too quickly, that could put a dent into our growth
prospects as the dollar then would spike.
But as we've seen over the last month at least, the dollar has stabilized and actually retreated a little bit and hopefully we can see some balancing
between the U.S. growth and maybe European growth picking up slightly in 2016.
So that balance stays where it is today and then companies can adjust and make their decision based on some relative stability.
DOS SANTOS: Jonas Prising, the CEO of ManpowerGroup, thanks for joining us from Milwaukee, Wisconsin this evening.
LinkedIn has helped thousands of Americans find new jobs, but that in turn hasn't helped its share price today, $10 billion, yes, $10 billion in total
has just been wiped off the company's value. We'll be live in New York with more on that after the break.
(COMMERCIAL BREAK)
DOS SANTOS: There's bad days on the markets. There is terrible days on the market and then there's LinkedIn days on the market. Shares of the
networking site have been closing more than 40 percent lower.
That's roughly $10 billion worth of value gone in just one single day. Now, LinkedIn admitted on Thursday night that its outlook is pretty
lackluster these days. Its forecasts for earnings and sales fell well short of what analysts were actually hoping for.
LinkedIn shares are now having a worst year than even the most troubled competitors. Stocks like, for instance, Twitter and Monster down by around
about 20 to 30 percent this year already.
But LinkedIn CFO said it's the global economic conditions out there that are to blame for these problems it's having. In fact, Thursday's report
referred to, quote, "pressure in almost every one of their major markets outside the United States."
Perhaps the biggest reason for today's drop is the market deciding that this stock had been massively overvalued before today. Remember, it had
been trading at a rather large premium because investors were betting on big growth for the future of this company and now obviously it seems as
though they're having second thoughts.
CNN Money's Paul La Monica is live in New York with this and plenty more. LinkedIn, 40 percent down, that is huge. One of the things that's
interesting here is it goes hand-in-hand with some other stocks like GoPro that are also falling out of favor. Is people falling out of love with
tech or just these companies?
PAUL R. LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: I think the high momentum tech stocks people are definitely falling out of favor. The hard
thing to try and ascertain, Nina, is that they went up so dramatically and now they're falling so rapidly.
Is this sell-off an overreaction or not? I'm not so sure. On the face of it, it might be because even though LinkedIn's guidance is not good, their
current estimates now for earnings this year is about 15 percent below where Wall Street had them.
So when you look at the math there, you would think maybe a 15 percent or 20 percent drop in the stock makes sense. More than 40 percent, losing
nearly half their value. That might be a little excessive.
But as LinkedIn pointed out, there's pressure around the world. And Apple's CEO Tim Cook admitted as much when they reported earnings as well.
So if Apple is struggling, I'm sure that, you know, LinkedIn and other secondary tech companies are going to be hurting as well.
DOS SANTOS: Is it really that though or is it that they're facing competition from new people coming into the market like Glass Door for
instance?
[16:15:05]LA MONICA: Yes, Glass Door is definitely a big competitor for LinkedIn. I think investors are also wondering if LinkedIn may be overpaid
for Lynda, that's with a "y," "l-y-n-d-a," non-line education company.
And then, of course, there's Facebook, which is pretty much competitor to everyone online right now. Facebook is taking the professional market more
seriously, as well, and we've seen many companies struggle against Facebook. Facebook is just on fire right now.
DOS SANTOS: Just briefly the markets are having a really difficult Friday. How do you view things as we look forward to next week?
LA MONICA: Yes, I think the sell-off in LinkedIn is emblematic of just investors really being nervous about tech in general. Facebook, despite
what I just said, their stock down 6 percent today.
Netflix, Amazon, Tesla, not necessarily tech per se, but their stock really hurting as well. Tesla's going to report its latest results next week so I
think a lot of skepticism there.
And then Twitter, which you mentioned earlier, Nina, as one of the struggling companies, they report as well. I think Twitter executives have
to really be praying that they don't have a LinkedIn-like reaction to their results next week.
Because the only good thing to say about Twitter right now is that the stock is so hated that maybe any news can be good.
DOS SANTOS: Dear, it's difficult when you're in that predicament, isn't it? Paul La Monica, have yourself a great weekend. Thanks very much for
bringing all that to us.
Oil prices are following those markets lower. Today, currently the U.S. brand of West Texas Intermediate or WTI Crude is currently down by over 2
percent at around $31 on the barrel as you can see. Brent crude has also dropped by about 1 percent.
Oil, that cheap of course, as you'd imagine, is causing big troubles for exporting nations like Nigeria. Government economists there say that GDP
growth is likely to slow down sharply this year.
They are going for rate of 3.8 percent where as just a few months ago there was talk of a whopping 6 percent growth. Eleni Giokos has more on this.
(BEGIN VIDEOTAPE)
ELENI GIOKOS, CNN INTERNATIONAL BUSINESS CORRESPONDENT (voice-over): Africa's largest economy is running out of cash. Nigeria has been hammered
by the low oil price, hurting oil producers and government finances.
KOLA KARIM, CEO, SHORELINE GROUP: Nigeria's earning, foreign exchange earning capacity has just come off the rails by almost 77 percent.
GIOKOS: The oil sector contributes 35 percent to the country's GDP and accounts for 90 percent of export earnings.
KARIM: Think about the price of oil in the summer of 2014 was $114. This year, we're knocking $30. That's a huge dislocation in earning capacity.
GIOKOS: Kola Karim is the CEO of oil company, Shoreline Group. He says we're just a few dollars away from dangerous levels.
KARIM: Anything below 25 is an alarm territory.
GIOKOS: Nigeria can produce up to 2.5 million barrels of oil a day, but it's still a net oil importer because of the lack of refining capacity, and
low oil prices don't necessarily mean cheaper fuel.
UNIDENTIFIED MALE: It's too expensive. It's difficult.
UNIDENTIFIED MALE: (Inaudible) individuals whoever is in Nigeria.
GIOKOS: From low oil prices to security concerns, President Muhammadu Buhari's problems don't stop there. He promised to win the war against
Islamic militant group, Boko Haram, which is a drain on the country and the budget.
And many are wondering how the government will continue to fund the costly fight. Just this week, Boko Haram attacked a village burning dozens of
homes to the ground with at least 65 people dead.
Nigeria is considering asking the World Bank for help to plug a portion of the $15 billion budget deficit created by the collapse in oil prices.
This, as foreign investors are waiting for oil prices to recover.
OSCAR ONYEMA, CEO, NIGERIAN STOCK EXCHANGE: Foreign investors in our markup have taken a view that they would like to be on the sidelines. So
most of them fell down from our market which has affected our index. The index lost about 17 percent last year and this year so far has lost about
21 percent.
KARIM: A $40 oil is a reality and $50 oil in the not too distance future is the new $100.
GIOKOS: Now Nigerian oil companies like Shoreline are bracing themselves for the new subdued normal. Eleni Giokos, CNN.
(END VIDEOTAPE)
DOS SANTOS: Even if the weather is freezing in the state of New Hampshire, the gloves are definitely off. Hillary Clinton and Bernie Sanders do
battle over who would be tougher on Wall Street. That's next.
(COMMERCIAL BREAK)
[16:21:30]
DOS SANTOS: Well, the U.S. Democratic candidate Bernie Sanders is heading to New York to appear on "Saturday Night Live," but he may get a bit of a
frosty reception if he takes a side trip to Wall Street.
The senator from Vermont spent last night's TV debate railing against what he called the billionaire class and slamming his rival Hillary Clinton for
her ties to the financial industry. It was a line of attack that Mrs. Clinton decided to address head on.
(BEGIN VIDEO CLIP)
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I really don't think these kinds of attacks by insinuation are worthy of you. And enough is enough.
If you've got something to say, say it directly, but you will not find that I ever changed a view or a vote because of any donations that I ever
received.
(END VIDEO CLIP)
DOS SANTOS: With just days to go before the state of New Hampshire goes to the polls, Bernie Sanders leads Clinton in that state by 2-1.
Jonathan Mann, the host of CNN's "POLITICAL MANN" joins us live from CNN Center with more. First of all, Jonathan, what exactly is progressive?
Considering they've dedicated a lot of time in this debate to trying to define that and compete on who is the most progressive candidate. Why
exactly does it matter?
JONATHAN MANN, CNN HOST, "POLITICAL MANN": Two nights in a row on national television they were arguing over who's the real progressive. As you say,
what does that matter? What does it mean?
In the United States, the word progressive has a long history and it refers to people who were involved in politics who basically have a lot of faith
in government's ability to help people and a lot of suspicion about big business's tendency to hurt people.
Progressives going back a long way. Well, they're the people who introduced prohibition. They attempt to get Americans to give up alcohol.
They're the people who basically designed the new deal to try to get the United States out of the depression.
Progressives believe in big projects and the government doing big things. The debate between Bernie Sanders and Hillary Clinton is over this.
Sanders said he is a progressive. Hillary Clinton is not.
She says she's a pragmatic progressive. She's a progressive who delivers. So in a sense diminishing him as a dreamer who can't achieve the things
he's aiming for and promising that she can get more modest goals and she can actually deliver the goods.
That's the split that they themselves are drawing between themselves and in the Democratic Party.
DOS SANTOS: And he also claims that he's non-establishment but that she is establishment. She said, well, I'm the first woman to run for the White
House.
MANN: Well, in terms of gender, she's absolutely right, we can't really argue about that. But Bernie Sanders is hammering away at something that
she's not in a position to deny. She has made an awful lot money personally, even before she started running for president.
She's made an awful lot of money by giving speeches and enjoying the company of very rich people. "The Washington Post" estimates that she and
her husband have made $25 million in the last two years giving speeches.
Another estimate puts it that since Bill Clinton left the White House, they made $125 million. There's no question about some of the details. She was
charging $225,000 a speech, $225,000 is five years pay for the average American or the average voter in New Hampshire.
She made that in two hours' time. When Sanders says she's part of the establishment, he's really saying she's not one of us. Bernie Sanders is
saying he's representing the people and Hillary Clinton is representing Wall Street.
That's a terrible over simplification, but there's so much money in the Clinton bank accounts, it's going to make people wonder.
[16:25:02]DOS SANTOS: But that's the Clinton personal bank account then we have to consider the issue of the super PACs. The financial bodies that
could potentially lobby a future president. And, again, Bernie Sanders is keen to point out, he's the true independent. That's an argument that will
go down well in a state like New Hampshire.
MANN: It absolutely will because in the same way that they were arguing over the word progressive for reasons that don't really make a lot of sense
to me, the word independent is key in New Hampshire.
We divide up Americans into Democrats and Republicans, but in the state of New Hampshire, registered independents are more than 40 percent of the
voting population, 40 percent of the electorate.
That makes independents a bigger group than Republicans or Democrats. Bernie Sanders, at the debate pointed out, he's been the longest sitting
independent member of Congress in American history.
He's making an appeal to the independents and in New Hampshire, that could be the single divisive demographic.
DOS SANTOS: All right, Jonathan Mann, host of "Political Mann." Thank you very much for that. I'm certainly going to tune in to your show over the
course of the weekend.
Now a new report says that Hillary Clinton is not the only U.S. secretary of state who received classified information through personal e-mail
accounts.
The State Department now says that on occasion Clinton's predecessors such as Colin Powell and also Condoleezza Rice both received classified
information in the very same way.
Joining me now from New York City is Alec Ross, who is a senior adviser on the issue of innovation to Hillary Clinton herself when she was U.S.
secretary of state. He is the author of "The Industries of the Future."
Alec, thank you very much for joining us. We'll get to the topic of your book in a seconds' time because it's all about the fourth industrial
revolution, and it's very interesting stuff.
But first, I want to talk about the issue that just won't go away for Hillary Clinton. That issue of sending e-mails through an unsecured
personal server. How long is this likely to dog her campaign?
ALEC ROSS, FORMER ADVISER FOR INNOVATION TO HILLARY CLINTON: Well, look, the people who I spend time with in Middle America are well past this. I
think the people in Middle America are most worried about their national security. They're worried about their economic wellbeing.
So while this gets a lot of real estate in the newspapers and gets an lot of air time on TV, when you talk to voters, it's not one of the things they
talk about so I think the American people have moved on.
DOS SANTOS: Have you personally moved on from this? Because you're one of the people who is sending the U.S. secretary of state e-mails to this
personal account.
ROSS: Yes, I've moved on.
DOS SANTOS: You have?
ROSS: I get to read the e-mails every month when they're released. Look, I've read all of the e-mails and, you know, there's -- what I've seen so
far is absolutely nothing that suggests she's anything but an outstanding secretary of state. And the person who's best suited to address the issues
I cover in my book about the industries of the future.
DOS SANTOS: Did it never occur to you that it might not be a good idea to send this information, to send e-mails to a personal account? Did you ever
discuss it with her?
ROSS: I didn't know that it was a personal account.
DOS SANTOS: All right. Let's move on and talk about your book here because it is interesting stuff too. You're talking about how in the
future people won't need to learn other languages because robots will automatically do a lot the interpretation for people. How do you feel the
world is likely to change in ten years from now?
ROSS: Well, first of all, that's actually not in the book. Actually one of the recommendations at the end of the book is called the most important
job you'll ever have, which is about parenting. And one of the things I say in that chapter is that actually we do need to be teaching our children
languages. We need to be teaching them foreign languages and we need to be teaching them computer languages.
DOS SANTOS: But you have written a really interesting article for "The Wall Street Journal." I feel sensitive about this myself because I've
learned seven languages.
ROSS: That's impressive.
DOS SANTOS: Thank you. Not saying I can speak them fluently. Finance is my first language. But you say interestingly enough that in the future,
technology will do all of these things for us. We can sit back. Can we really sit back? What do you think?
ROSS: Absolutely not. We shouldn't sit back and do anything. The fact that very powerful artificial intelligence is developing so that robots are
growing from things that were once only manual in routine and increasingly doing work cognitive and non-routine means that we absolutely cannot sit
back.
What it means is that the kind of education that young people get needs to prepare them to be even more competitive in knowledge-based industries.
I actually think that the rise of artificial intelligence is going to challenge humans in some significant ways especially in high cost labor
markets like the one that you live in and the one that I live in.
DOS SANTOS: Well, that's particularly important because of the labor market report we saw out today. If we saw that labor report released ten
years from now and you and I were talking about it, what would it say? How would technology have changed it?
ROSS: I think technology is going to change the nature of human labor such that things that are routine, even white collar jobs like my father.
[16:30:03] I love my father, but he spent the last 40 years of his life as basically doing the same thing for 40 years - preparing a foot tall stack
of paper for real estate closings. I have a feeling that kind of labor is going to be displaced. And so what
I have the feeling is that they're going to be - it's going to be really tough to be working class or middle or class in a high-cost labor market.
So I think it's imperative that in a 196-country increasingly globalized economy, that we revamp our education so that people are better prepared.
DOS SANTOS: Alec Ross, great to have you on the show there, the author there of that interesting book "The Industries of the Future" and also a
former advisor to the U.S. Secretary of State Hillary Clinton. Thanks for joining us.
ROSS: Thanks for having me.
DOS SANTOS: (Inaudible) your city. Now, the Zika virus is spreading as Rio de Janeiro prepares for its annual Carnival festivities. We're going
to be talking about the sorts of problems that this virus could cause. Do stay with us after the break.
(COMMERCIAL BREAK)
DOS SANTOS: Hello, I'm Nina dos Santos. There's more QUEST MEANS BUSINESS in just a moment's time when the chairman of CBS tells us why $5 million is
the right price tag for a 30-second Super Bowl ad. And Colorado or Switzerland? Perhaps even Iran. The Islamic Republic ramps up its efforts to bring in skiers.
But for that, these are the top stories that we're watching on CNN this hour.
Firefighters in Southern Taiwan say that a building has collapsed after an earthquake struck the city of Tainan.
The quake was measured at a magnitude of 6.4. We have no reports of casualties right now.
According to the U.S. Geological Survey, this quake was at about 43 kilometers from Tainan, that's a city that is home to around 2 million
people. Video has emerged appearing to show tens of thousands of people fleeing from the Syrian city of Aleppo. CNN has not been able to independently
verify where or where these pictures were shot, but the United Nations says that 40,000 people are being displaced by the latest round of fighting
around the city of Aleppo. It also says that they are heading - they're heading for the Turkish border
towards the north. A bomb hidden in a laptop computer may have caused the explosion that blew a hole in a Somali airliner earlier this week. That's according to a
source familiar with the investigation. They also said that that traces of military-grade TNT were found on the
jet. Well a U.S. official says that investigators suspect the al-Shabaab militant group could have been behind the attack.
And the WikiLeaks founder Julian Assange welcomed a report by the United Nations panel on his case. It says that he's been arbitrarily detained as
a result of the actions of Sweden and also Britain. [16:35:07] Since 2012 Mr. Assange has been avoiding arrest and deportation by living in the Ecuadorian Embassy in London.
Two official authorities say that they want to question him about allegations of rape.
(BEGIN VIDEOCLIP)
JULIAN ASSANGE, FOUNDER, WIKILEAKS: How sweet it is. This is a victory that cannot be denied. It is a victory of historical importance, not just
to me, for my family, for my children but for the independence of the U.N. system.
(END VIDEOCLIP)
DOS SANTOS: U.S. unemployment is back below 5 percent for the first time since the year 2008.
Hiring though is slowing down - 151,000 jobs were created last month. That was way down from the 262,000 that were created in December.
A large construction crane has collapsed in Lower Manhattan, killing one person and injuring three others.
You can see the 565-foot crane falling to the ground in this amateur video that was filmed from a nearby building.
While officials in New York are investigating how exactly this event happened. Mayor Bill de Blasio says that it's a miracle there weren't more
casualties. The World Health Organization has told CNN that it wants an extra $25
million dollars to help governments contain the current Zika virus outbreak.
Well the W.H.O. declared Zika a health emergency earlier this week. It says that with the extra money it could help the affected countries to suppress
the carriers of this disease - mostly mosquitoes. How is it scientists in Brazil have now found traces of Zika in the saliva
and urine of people who have been affected. They say that that raises new questions over how the virus spreads. It all comes as Carnival gets underway across Brazil. CNN's Shasta
Darlington joins us now live from Rio de Janeiro with more on that. So, this doesn't seem to stop the partying I guess. People must be worried in Rio, both tourists and residents.
SHASTA DARLINGTON, CNN CORRESPONDENT: Nina, what we find - you know - we headed out on - we headed out on the beach today, Copa Cabana Beach.
We've been to street parties, we've been to the Sambadrome where people are running through their trial runs for parades.
People frankly aren't talking a whole lot about Zika. We even - we talked to some of more than a million tourists who are coming into the city.
That's more tourists than we saw last year by the way -- the hotels are booked.
And what tourists are telling us is, you know, we keep hearing that this is a risk for pregnant women, so why should we care?
Take a listen to what some people told us.
(BEGIN VIDEOCLIP)
UNIDENTIFIED MALE: We bought our tickets like months ahead of time. We were like we're not going to like not come because of this thing.
UNIDENTIFIED FEMALE: It feels a lot worse when you're at home listening to it and when you're here, it doesn't seem as much of an issue like people
are just getting on with their daily life.
UNIDENTIFIED FEMALE 2: (Inaudible).
DARLINGTON: And the other thing I should say those two women from London did however say there, they are lathering on the repellant before they head
out. But they also said, you know, in so many cases like the first men, they had bought their tickets beforehand and they weren't going to change now.
And of course many of the tourists in Rio de Janeiro are Brazilians who couldn't afford to go abroad anymore because of the exchange rate.
But at this point, I think it's fair to say the Zika virus and the whole health crisis really isn't passing a shadow over at least the tourism
aspect of it. Officials are concerned. We've seen them taking steps, whether it's fumigating the Sambadrome to make sure the adult mosquitos which transmit
the virus are killed or launching just nationwide campaigns to, again, urge people to eliminate the standing water in their homes where these mosquitos
breed. And there is a real sense of concern that because we're in the middle of the summer - the rainy season - there are a lot of mosquitos that this
Carnival could end up actually becoming a bit of a food fest for the mosquitos and spreading the virus further afield.
So they are taking that risk very seriously and also the consideration that other forms of transmission are now being investigated, Nina.
DOS SANTOS: I was going to ask you about that, Shasta, because it seems as though the mosquitos may not be the only vectors.
People themselves can transmit it through bodily fluids, they're finding.
DARLINGTON: That is one of the latest discoveries. Here in Brazil the scientists announced this morning that they had found the presence of a -
of live Zika virus in saliva and in urine with the potential for transmission.
They said a lot more studying and research needs to be done to find out whether they really do transmit that virus. But it was similar with the
sexual transmission. [16:40:04] When we asked doctors and experts about that, the confirmation
in Texas of a case there, they said of course that is a point of concern, but what we know right now is that at this point it's still a risk for
pregnant women. Let's not jump over - let's not go any further than that, exaggerate. And also the main vector, the main source of transmission is the mosquito and
we don't want to lose sight of that. If we start going on about saliva or going on about sexual transmission, people could drop the ball and, again, not listen to the main message which
is you have to get rid of the standing water in your homes where these mosquitos are breeding.
If we could get rid of the mosquitos, then those other forms of transmission wouldn't come into play. And that's the message we keep
hearing, Nina.
DOS SANTOS: Shasta Darlington, thanks very much for that live from Rio de Janeiro this hour.
Now only 30 seconds during the Super Bowl is costing a record amount of money this year. The CEO of CBS Les Moonves tells us why he thinks that
it's a price tag worth paying.
(COMMERCIAL BREAK)
DOS SANTOS: It's the eve of the Super Bowl weekend in the United States. The Denver Broncos and the Carolina Panthers meet on Sunday in the game's
50th installment to find America's - American football's next world champion.
Last year's Super Bowl drew the biggest audience for any U.S. TV broadcast ever. We're talking about 114 million people in total.
And with the big game set to generate around about $620 million in revenue this year, it's the valued - most valuable sporting event anywhere in the
planet, according at least to "Forbes Magazine." Super Bowl 15 is being shown on CBS which is charging a record $5 million
for a 30-second commercial spot. Well our senior media correspondent Brian Stelter spoke to the CEO and
newly-appointed chairman of CBS Les Moonves.
(BEGIN VIDEOCLIP)
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: What does this Super Bowl feel like for you - number 50?
LES MOONVES, CHAIRMAN AND CEO, CBS CORPORATION: It's unbelievably exciting. You can just feel it. The minute you step on the ground in San
Francisco, you feel it happening. Obviously we've been planning this for an entire year. Sean McManus, our chairman of sports called a meeting that I was in attendance with the day
after the last Super Bowl, with literally every division of CBS there planning for this weekend.
And now it's the culmination of that and we're really excited.
STELTER: Let me ask you about an eye-popping number. Can you really charge - are you really charging $5 million per Super Bowl ad?
MOONVES: Certain spots we're getting $5 million or more -
STELTER: Wow.
MOONVES: -- and it's worth it. We get the biggest advertisers, there's no bigger event in America or in the world than the Super Bowl.
And not only do the ads get seen by well over 100 million people on the air at CBS, but they were on the air for weeks and months at a time and people
look at them and there's a certain prestige to being a Super Bowl advertiser.
So we have the best of them with us this year and we're very excited about it.
STELTER: So this year for the first time you're streaming the same ads online as you're showing on TV. Why is that an important change?
MOONVES: Well obviously we're all in the middle of a revolution where a lot more people are watching their television - being it sports, being it
football, being it entertainment, being it news - online. I would argue that the Super Bowl is probably, you know, the number one digital event as well as the number one over-the-air-event.
So getting the ads on digital, online at the same time makes perfect sense and it's sort of where the business is going. More people are watching CBS
this year than watched it 15 years ago.
[16:45:09] STELTER: People have a hard time believing that, but (inaudible) it's true.
MOONVES: But it is absolutely true. They're just watching it in different ways, on different platforms at different times and it's important for us
to get paid for that, monetize it and that's why we think the future's very bright.
(END VIDEOCLIP)
DOS SANTOS: Well casting a shadow over football ahead of Super Bowl 50 is the fact that yet another former player is believed to have died from a
brain condition caused by repeated blows to the head. It's known as CTE, and it has never been this diagnosed before in the living or at least until now when an autopsy has confirmed that
experimental tests that detect a CTE in a former linebacker Fred McNeill means that he actually had the disease.
And that makes him potentially the first person in the world whose condition was diagnosed before his death.
Our chief medical correspondent Sanjay Gupta joined me earlier and I asked him how prevalent this condition is.
(BEGIN VIDEOCLIP)
SANJAY GUPTA, CHIEF MEDICAL CORRESPONDENT: Well if you look at the numbers, I mean, there have been nearly 100 brains now that have been
examined and about 96 percent of them have shown evidence of CTE. So that many of these brains are former professional football players. But one thing I should point out, and this one of those things in
statistics and medicine is that the people who donated their brains - the families who donated the brains for study were worried that CTE may already
exist. So there was already some what they call selection bias. I don't think anybody would suggest that 96 percent of former professional football
players are going to have this condition, it's just 96 percent of the brains that have been examined.
DOS SANTOS: Yes, obviously from a statistical point of view that could skew the evidence. But who is most likely to get this disease?
GUPTA: Well it's really interesting and, you know, when you look at the cause, there really seems to be no other cause for this CTE other than
repeated blows to the head. It was first identified in boxers, you know, a few decades ago. And then more recently over the last decade/decade and a half in American football
players. But there really seems to be nothing else that can do this. So, repeated
blows to the head, we don't know how many blows to the head it requires, we don't know how significant all the blows to the head must be.
We know that it's not just concussions, but it can even be what are called sub-concussive hits, you know, hits where a guy gets right back up,
doesn't really think about it. We know that's not a short-term injury to the brain. We know that that -
those - types of injuries add up over time.
DOS SANTOS: You've spoken to the former linebacker Fred McNeill and his family. What did they have to say?
GUPTA: Well, I mean, they're an incredible family, you know, and I've talked to Fred McNeill over the last six years - back in 2010 was the first
time. It - we really wanted to get some insight into what is life like when suddenly this person that know and you understand suddenly changes.
Take a listen to how his son put it.
(BEGIN VIDEOCLIP)
GUPTA: Rage, memory loss, depression.
FRED MCNEILL, JR., FRED MCNEILL'S SON: Yes.
GUPTA: Did your father have all three of those?
MCNEILL, JR.: Definitely, definitely, yes. He - that was another point of worry for us because those times when, you know, he would talk about ending
it and we were like, no way. Like this is not our dad.
(END VIDEOCLIP)
GUPTA: So you heard that, Nina. I mean, there were rage issues, there were depression issues and certainly memory loss issues.
He was just in his 40s, he was a football player, he went to law, he was a practicing lawyer and then literally, seemingly for them, overnight lost
his job, lost the house, had troubles with the marriage. He just completely flipped and they now know that it was due to CTE.
DOS SANTOS: And now of course that we've got the Super Bowl, all eyes yet again glued towards a big high contact sport.
Is there a sense, Sanjay, that the medical profession is lobbying these sports to try and take this situation seriously and do something to prevent
some of these former players from getting CT?
GUPTA: I think - I think the medical community's been pretty unified on that point - recognizing that this is a real condition and that's just
happened over the past few years. I mean, there were a lot of people who were denying that this was a real condition even a few years ago.
I think there's still a - the divide, Nina, really is that I think there's a certain segment of the medical community who says you know what? Just
don't play football. I mean, there's no way you can make this game safe enough and there's always going be too much injury to the brain.
And another part of the community that says we're worried about this but we think there's ways to make the game safer and more acceptable.
So there's still that divide. And there's also this real energy and urgency about figuring out tests that can diagnose this while someone is
still living as opposed to when they died. And Fred McNeill may have been the first to show that that can actually happen.
(END VIDEOCLIP)
[16:50:00] DOS SANTOS: Now let's bring you up to date on a story that we're following this hour at CNN.
This is video just coming in to us from Taiwan where a building has collapsed after an earthquake struck one its cities, the city of Tainan in
particular. This is amateur video showing the first responders at the scene trying to assess the damage and to look for anyone who may have been inside this
particular building. As you can see they're pointing their torches at windows. You can see their ladders being put at this building trying to find out if anybody else
is injured inside there. Some more information on what we know so far. The quake was measured at a magnitude of 6.4. So far there's no reports of any casualties.
But according to the U.S. Geological Survey, the center of the quake was in about 43 kilometers from the city of Tainan. That is a metropolis, home to
about 2 million people. So that's video just coming in to us now from somebody who has taken it - I
believe it's amateur photography there -- from somebody filming that on a telephone camera.
But as you can see, the first responders on the scene trying to find out if anybody is inside that building that has collapsed.
Iran is getting a lift but not just from the recent ending of sanctions, this time it's from ski lifts. We'll explain after the break.
Also, a highlight from Make, Create, Innovate. Stay tuned for that.
(COMMERCIAL BREAK)
DOS SANTOS: In the wake of its nuclear agreement with the West and the lifting of sanctions, Iran is now setting its sights on tourism.
The mountains were already a hit with local skiers, but now the government also wants to turn them into something of a global attraction.
CNN's Fred Pleitgen has the story.
(BEGIN VIDEOCLIP)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Deep in the Alborz Mountain Range what lies in Iran few in the West have heard about.
The Darbandsar Ski Resort is one of the biggest and most modern in the Islamic Republic.
Skiers marvel at the quality of the snow and the facilities.
UNIDENTIFIED FEMALE: Snow is powder. I love that, it's amazing.
PLEITGEN: At an elevation of 3,600 meters, around 12,000 feet, Darbandsar slopes are open up to six months of the year.
Weekends are often packed, mostly with Iranians looking to escape the urban jungle of the capital Tehran.
Iran has a wealth of beautiful mountains and ski areas, and ski tourism is one of the industries that the government here wants to develop.
They hope that with the lifting of sanctions, very soon millions of tourists from all over the world will come here.
With a DJ, a non-alcoholic cocktail bar and an American-style food court, it's a far cry from the way Iran is often portrayed -- with hardliners
chanting death to America and major problems with civil and women's rights. But in the mountains, gender equality is a lot closer. At the Meygoon Ice Climbing School, Sapede Jabda (ph), one of the best female ice climbers in
Iran, expertly scales the frozen falls while fellow male athletes cheer her on.
SAPEDE JABDA (ph), FEMALE ICE CLIMBER, TRANSLATED BY PLEITGEN: "Ice climbing is much more risky than rock climbing," she says. "The ice can
break off any time and fall on you. But if you love the sport, it's really cool."
PLEITGEN: Ice climbing is still a fairly new sport in Iran, but it is quickly catching on the Meygoon School's boss tells me.
[16:55:06] UNIDENTIFIED MALE, BOSS OF, TRANSLATED BY PLEITGEN: "We started 14 years ago and now it's getting very popular," he says. "Every day we
have between 60 and 70 people coming here for training and for competition."
PLEITGEN: While Iran still has a long way to go in improving its tourism infrastructure, it certainly has enough mountains, snow and ice to become a
popular winter sport destination. Fred Pleitgen, CNN Darbandsar, Iran.
(END VIDEOCLIP)
DOS SANTOS: It's been a slippery slope on Wall Street. We'll be back with the final check of the markets after this break.
(COMMERCIAL BREAK)
DOS SANTOS: The Dow has ended the trading week more than 1.5 percent lower. In Friday's session alone, as you can see, it lost more than 200
points. That was for the second time this week as investors tried to weigh up what
the January jobs reports means for interest rates from here. The unemployment number was good, but the number of jobs itself was underwhelming. The U.S. only added 151,000 of them.
Tech stocks were some of the worst hit as a result. The NASDAQ dropped more than 3 percent in Friday's session.
And LinkedIn in particular had the worst day of all, tumbling some 43 percent as you can see there.
That was after its earnings report came out late on Thursday, delivering a weak outlook that spooked the entire sector. As you can see things like
TripAdvisor as well as Facebook also fell. Netflix for its part dropped by more than 8 percent on the day.
The U.S. payroll numbers also dragged down the European markets as well. All of the major indices finished on something of a low note.
Germany's Xetra Dax was the worst performer of the day. Well that's it for QUEST MEANS BUSINESS. Thanks for joining me today. I'm
Nina dos Santos in London. Thanks for watching. Have a wonderful weekend, and Richard will be back on Monday.
END
