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Quest Means Business
Overpass Collapses and Kills at Least 22 People; Police Officers Killed in Turkish Car Bombing; Paris Suspect Abdeslam To Be Extradited To France; South African Court Orders Zuma To Repay Public Funds; Amnesty International Says Workers are Being Abused at Qatar World Cup Sites; Leader Renew Pledge Against North Korea Nuclear Threat; Lithuanian President Says Europe Is Not Prepared to Fight Terrorism; Top Companies Hit Out At North Carolina Law; U.S. Female Soccer Players Sue for Better Pay; Bulgaria Grapples with Migrant Crisis
Aired March 31, 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]
RICHARD QUEST, HOST: The elegance wearing the appropriate attire during the closing bell at the New York Stock Exchange, a tuxedo as the market trading
comes to a close and the lady in blue, no, the man in the tux. That's what you call a firm gavel on Thursday, March the 31st.
(BEGIN VIDEO CLIP)
QUEST; Tonight, the house that corruption built; South Africa's top court slams the President on his supposedly private estate. We'll show you just
how big that was.
Interpol's Secretary General tells me he can lead the global fight against terror. And the women's world champs take on prize-winning equality. It's
football's battle of the sexes.
(END VIDEO CLIP)
QUEST: I'm Richard Quest, we have an hour together and, of course, I mean business.
Good evening. Tonight two Presidents, two economies, one outcome looking more than likely, impeachment. Brazil and South Africa two of the so-called
bricks are embroiled in a bitter political dispute that threaten to derail their already battered economies and cause great problems.
(BEGIN VIDEO CLIP)
QUEST: In Brazil, as President Dilma Rousseff's future, political future is very much in question her supporters are rallying across the country as the
minister of sport has resigned only four months ahead of the Rio 2016 Olympics.
And in Johannesburg, South Africa's highest court has ruled that President Jacob Zuma violated the constitution. The President used millions of
dollars in state money to upgrade his private home and has consistently refused to pay it back.
MOGOENG MOGOENG, SOUTH AFRICAN CHIEF JUSTICE: All the president was required to do was to comply. Arguably he did, but only with a (inaudible)
to report to the national assembly. The president, thus, failed to uphold, defend, and respect the constitution as the supreme law of the land.
(END VIDEO CLIP)
QUEST: Nkandla Gate became a symbol of corruption in South Africa. And this is where it is.
(BEGIN VIDEO CLIP)
QUEST: Of course, you've got Pretoria, the capital, (inaudible) Cape Town over on the western cape and over Nkandla over here towards the east. It is
a sprawling homestead and it's located near to President Zuma's birth place. This puts it into perspective on the map in South Africa. But now
let's look and actually see.
This is the overarching view of Nkandla. You get an idea of how big the estate is. This is what it actually looks like in terms of the number of
buildings. You can see the security perimeters that are actually put in place.
(END VIDEO CLIP)
QUEST: Well, now in 2014 the watchdog said that renovations to Nkandla were overtly lavish. And some $15 million was put on the price. President Zuma
asked for a reasonable percentage of upgrades on security grounds. The police minister defended the security upgrades and said that Zuma did not
need to play.
(BEGIN VIDEO CLIP)
QUEST; However, look at what was actually done. First of all, you have the amphitheater. Now the amphitheater doubles as a retaining wall to prevent
soil erosion, so they say it's part of the proper performance of the building and he shouldn't have to pay but now the Supreme Court has said
that's simply not the case.
Then you have the cattle enclosure and the chicken run. There's the cattle, there's -- you can't see any chickens, but there you are. Now apparently
you need these enclosures to prevent animals from setting off motion alarms. These are the reasons being given for why the work was done, but
they shouldn't have to pay the money back.
And finally you come to the swimming pool. Well, it's called a swimming pool, but actually it's a fire pool. In other words, it's over here and it
serves as a water reservoir. When you put this together, whether it's the amphitheater retaining wall, the enclosure, or the swimming pool, these are
all improvements that were made that now the Supreme Court says must be reimbursed.
(END VIDEO CLIP)
QUEST: Mmusi Maimane who leads South Africa's main opposition party, the Democratic Alliance, and says today's ruling is an opportunity to begin the
impeachment process against President Zuma. Sir, thank you for joining us this evening.
This is a battle that has raged for some years. The President has -- I mean, now the Supreme Court has spoken, that is the end of the matter as I
understand it.
[16:05:05]
MMUSI MAIMANE, LEADER DEMOCRATIC ALLIANCE: Thank you so much for having it. It's a significant judgment for the people of South Africa. It affirms the
principle investigating agent was the public protector in this instance who has got powers in the constitution to make remedial action. It was her who
said the President must be able to pay back a portion and there's a significant judgment in that regard, but it also says the parliament of
South Africa did not handle the matter in a manner that was consistent with law. So we feel it's a crucial judgment that vindicates our position as the
opposition party. It says President Zuma's not above the law. It says South Africa's future and democracy is secure in that you have an independent
judiciary. But more profoundly it says that President Zuma did not act in a way to protect the constitution by defying the public protector and
therefore as a result of that we feel it would be improper for us to have a President in the Republic who simply cannot protect the constitution.
QUEST: All right. The judgment was absolutely robust and crystal clear in the comments against the constitution and how the President is supposed to
have acted. However, how do you take this further? Since appetite for impeachment or some form of removal process bearing in mind the strength of
the ANC, you're not going to be able to do it.
MAIMANE: Well, section 89 of the South African Constitution says that in fact if we deem that there's a serious violation of the constitution, then
we can begin process of impeachment. When I stood as a Member of Parliament and took oath, I said I would defend the Constitution of the Republic.
(BEGIN VIDEO CLIP)
MAIMANE: In fact, it's a requirement for foreign members of parliament in South Africa. It is amiss to me that there are members of the ANC who
subsequent to their President have been found to have violated the constitution that they would now say, having taken that oath, that they
would refuse to vote against President Zuma and to vote for his impeachment.
But what's critical here is that we cannot have Jacob Zuma and the Constitution of the Republic in one place. You can't have it in parliament;
you can't have it in South Africa because President Zuma does not seek to protect the constitution.
(END VIDEO CLIP)
MAIMANE: He's already violated his oath of office and uphold now is that members of the ANC must protect it.
QUEST: Even if that is right and, I mean, the history of removing South African Presidents, I mean the last President was done over by his own
party not by parliament, the reality is though until the ANC itself wants to get rid of Jacob Zuma because it fears electoral defeat elsewhere,
you're not going to be able to get rid of him.
MAIMANE: No, it's going to be a battle that we've put before parliament. It has legal ramifications as part of the judgment today actually made it
quite clear that the handling - that parliament handled the matter of (inaudible) in a manner that's not consistent with the constitution. This
is a great opportunity for ANC members to not only find their conscience but to also protect the constitution. But also if it's also -- this year is
an election year in South Africa and we believe that South Africans will come out and vote against Jacob Zuma and his party who are beset on
defrauding the people of this country.
QUEST; Sir, thank you very much for joining us. I appreciate your giving us insight late in the evening in South Africa. Now put this into perspective.
If we look at the size and scale of what was actually put in place. We're very fortunate to have Eleni Giokos who's our Africa Money Correspondent
joining me here.
(BEGIN VIDEO CLIP)
QUEST: Look at this, it's a fairly -- it's a massive - it's a massive basically jamboree this thing isn't it?
ELENI GIOKOS, CNN AFRICA MONEY CORRESPONDENT: It is. It's absolutely enormous.
(END VIDEO CLIP)
GIOKOS: And this is the thing. I mean everyone has been focusing on this the last couple of years, right?
QUEST: They've been focusing on it.
GIOKOS: Yes. It's been taking away from some of the most important themes in the country, and you know whether Jacob Zuma needs to pay some of the
money back. And funny enough, Richard, we know that he put in David van Rooyen as a new finance minister in December and then forced to get Pravin
back. Pravin Gordon is now going to be the deciding factor to how much he needs to pay back.
QUEST: How -- all right he's got to pay back some money whatever happens now that the Supreme Court has ruled on this. But to listen to what the
D.A. us saying. Is it likely that there can be impeachment?
GIOKOS: Well, when you've got the ANC holding 62% of parliament, it's going to be very tough holding the majority. And this is the thing. Will some of
the ANC parliamentarians now turn against Jacob Zuma?
QUEST: But that's what they did with Mbeki.
GIOKOS: Yes, that's what they did.
QUEST: That's how they got rid of Mbeki-- it was his own party that turned against him, not the electorate.
[16:10:02]
GIOKOS: But Jacob Zuma over the past couple of years has been making significant changes within the cabinet and putting a lot of people that are
his allies around him so it's going to be very different to what we saw with Thabo Mbeki.
QUEST: What will investors be thinking about all of this? What will the business community who saw three finance ministers in a week or two weeks,
who have seen the rand under pressure, who's basically seeing the economy start to fall apart.
BIOKOS: Well it's falling apart we're teetering on junk status. I think a lot of people are happy that Pravin is back. But what investors are
thinking at this point in time is that whether they're going to be losing a lot more on the currency front, whether we're going to see growth. The
currency is now sitting at a four-month high Richard. So it's looking a little bit better. We lost 30% last year on the rand you know and I think
those are the kind of things that are going to be very important.
And also, fiscal issues. Are we going to pull back on spending? We've been over spending. Debt to GDP is rising and we've got such a weak economy. I
mean we're going to be lucky if we don't - if we hit around 1% this year.
QUEST: Finally, you've been now in the U.S. for some weeks. As you look back at the country that you cover how does it appear?
GIOKOS: It appears weak and it appears that we need to do a lot of introspection and focus on some of the most important issues obviously, and
I think growth and a lot of what investors are thinking are also important, Richard.
QUEST: I don't know why you're still here, you should be on your way back getting back to --
GIOKOS: I'm staying!
QUEST: You should be on your way back getting back to covering duties on our behalf.
GIOKOS: Yes, I should, soon.
QUEST: Off you go.
GIOKOS: Thank you.
QUEST: In Brazil, Dilma Rousseff does have some support even as her political future dims. Pro government administrators are rallying across
the country.
(BEGIN VIDEO CLIP)
QUEST: This was in Brasilia some time ago and that's where we find Shasta Darlington.
(END VIDEO CLIP)
QUEST: Shasta, I mean you know there was always an element of politics besides corruption and scandal. And now basically the President says it's a
coup and she's managing to get her own supporters out to justify it.
SHASTA DARLINGTON, CNN CORRESPONDENT: That's right, Richard. I mean, this isn't the first time we've seen her supporters coming out. In fact,
apparently there are already some 10,000 people on the streets here in Brasilia, in different areas. They'll be converging on this point with
congress right behind me a little later this evening, but even though that's a pretty significant number, it's already smaller than what we saw a
week and a half ago.
She is increasingly isolated on the political stage as we know. She's been abandoned by Brazil's biggest party, now the sports minister has stepped
down, so there is a real attempt by the government, by President Rousseff and of course by former President Luiz Inacio Lula da Silva to get their
supporters out to show that they're not just going to stand by and take it, that they're really going to fight this every step of the way.
And of course as you just mentioned, their main argument is that President Rousseff has not been implicated in the massive bribery and corruption
scandal that is being investigated here in Brazil.
(BEGIN VIDEO CLIP)
DARLINGTON: Instead, they're trying to impeach her for supposedly basically cooking the books, making a budget deficit look like a surplus ahead of the
2014 elections. And her supporters would say that's just not an impeachable offense given all of the things going on in this country, Richard.
QUEST: OK. Let's cut to the chase here as they say.
(END VIDEO CLIP)
QUEST: Shasta, what is your gut feeling about how this moves forward now?
DARLINGTON: I really think this is going to drag out, Richard. There isn't going to be a quick and easy solution. You know you have some analysts
saying there's a 90% chance of impeachment. On the other hands, even though Brazil's biggest party has pulled out, the six ministers who belong to that
same party it looks like they're not going to step down even though their party has asked them to. So you do see these pockets of support.
At the same time, the government is now trying to provide pretty significant budgets to smaller parties to see if they can get some more
support from them. What they're trying to do here is avoid the 2/3 vote necessary in congress to go ahead with the impeachment proceeding. So if
this government can keep enough support, the impeachment proceeding won't even get off the ground in congress. And that's what they're working on
right now, Richard.
QUEST: And we look forward to your coverage of that. We know that's expected perhaps as soon as April, maybe as late as May. Shasta in
Brasilia, thank you.
The Secretary General of Interpol says and tells me all of his career -- in all of his career he's never seen a terror threat like the one that we're
facing today.
(BEGIN VIDEO CLIP)
QUEST: Jurgen Stock reveals what a global response would look like and says Interpol must be part of that response.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
[16:16:20]
QUEST: The head of Interpol says his organization is ready to lead the global response in the fight against terrorism. Jurgen Stock spoke to me as
he attended the International Nuclear Summit in Washington. I asked the Secretary General what security services around the world should be doing
now in the wake of the Brussels attacks.
(BEGIN VIDEO CLIP)
JURGEN STOCK, SECRETARY GENERAL INTERPOL: I think, first of all, we have to see that we are facing a threat, which I in my 40 years career in law
enforcement haven't seen before. A global - a real global threat, more international and more complex than ever.
What does it mean in terms of the challenges? Of course, most of the important work that the main work needs to be done by law enforcement
agencies and the intelligence services. So the point is that we have to better share our information, information that is available globally
because we are talking about a global phenomena. So that means we have to share the information, not just regionally or bilaterally between
countries, we really have to share the information on a global scale.
QUEST: The problem is I've heard this phrase, a global response, again and again, but nobody can ever paint for me what a global response looks like,
and how do you handle the challenges of putting together such a global response?
STOCK: I think most importantly it's providing a platform, like Interpol provides with its system of connecting 190 member countries. Providing a
secure platform to exchange information, providing central globally accessible databases where the countries put their information on, for
instance, foreign terrorist fighters, on stolen, lost and travel documents into the databases. And, secondly, it's important that we provide access to
border -- border points to even the frontline police officers that they have access to the global information.
QUEST: Is law enforcement -- are the various police bodies in Europe overwhelmed by the current situation? It seems as if -- you know, moments
were missed, information from the Turks wasn't properly handed over to the Netherlands or if it was it didn't get to the Belgians. One's left with
this feeling when one looks at Brussels that opportunities were missed and authorities were overwhelmed.
STOCK: I think the current threat level is a challenge in terms of the scale and the sophistication. No doubt about that, that it's a huge
challenge for the intel services, for law enforcement to deal with this situation, again, which I haven't seen in my long career. Really the
complex nature of the threat and the international connections, we know that these terrorist groups are connected with each other. They are really
traveling globally. They are shifting their money quite globally. So it's a challenge for our member countries. But, again, Interpol provides the
platform to share the information that needs to be shared.
QUEST: Can you give us some reason, some form of hope, some idea that actually this battle against ISIS can be won bearing in mind the old rule
here, they only have to be lucky once, we have to be lucky every time. And on the back of Paris and Brussels, it seems and most people believe and
most people I speak to believe, that it is only a question of time before the next attack takes place.
[16:20:12]
STOCK: Yes, unfortunately I have to say it seems to be a long journey, and we shouldn't forget that also because of intensive sharing of information,
law enforcement intelligence services have been able in the past prevent terrorist attacks from taking place. But again, we have to stand together,
we need to share our information. We need to get the bigger picture to take the appropriate action to prevent terrorist attacks from taking place.
There is no other option than really globally sharing, standing together, and having the right strategy to tackle this phenomenon.
(END VIDEO CLIP)
QUEST: Jurgen Stock of Interpol. Later in this program you're going to hear more from the -- Lithuania's President tells me that NATO should take a
bigger role in the fights of terror.
So we've reached an end to one of the rockiest first quarters in stock market history. Let us have a look and see how we've closed the day so
far.
(BEGIN VIDEO CLIP)
QUEST: Well, the day is just up 31 points. We don't need to get too excited about that. We're still comfortably over 17,000. You can see it all sort of
happened rather late in the afternoon, but the perspective of the quarter is what we really need to talk about.
The Dow Jones off just 31 today suffered the worst start of the year ever and it has recovered all the way back. This is what -- look at that. So it
starts in January and you remember all the indigestion that we had. Straight the way down from 17,268 all the way into the mid-15,000s and then
-- and this is the core part. Look at the way it claws its way back. So if that's the three months, if you look at the year to date, I mean, that
shows you we are virtually back to where we were in December and to in the middle of last year.
It's a fascinating market at the moment, and when it comes to the market, you really can boil Q1 down to a single letter. It is the letter V. Clare
Sebastian reports with voracity.
CLARE SEBASTIAN, CNN MONEY CORRESPONDENT: The Dow in New York, the broader S&P 500, the DAX over in Frankfurt all tracing the same letter of the
alphabet.
You've had a v-shaped recession well this was a v-shaped quarter. All that turmoil compressed into one three-month period beginning, of course, with
the steep slide and then gradually climbing back up again. And, of course, there was another V in this from the start, volatility.
(END VIDEO CLIP)
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(BEGIN VIDEO CLIP)
SEBASTIAN: In one of the worst starts to a trading year on record, the V was vicious cycle. The selling led to more selling.
TIM ANDERSON, MANAGING DIRECTOR: I think the attitude of a lot of managers was this might get ugly. Sell first and ask questions later.
ALAN VALDES, SENIOR PARTNER, SILVERBEAR CAPITAL: This has been the quarter. I mean, it's been all over the place. Down in the beginning, oil
and the Fed and now back up oil and the Fed.
SEBASTIAN: Wherever oil went, the markets would mostly follow. And while oil was swinging up and down, Janet Yellen stopped in her tracks.
JANET YELLEN, CHAIR U.S. FEDERAL RESERVE: The committee expects that economic conditions will evolve in a manner that will warrant only gradual
increases in the federal funds.
SEBASTIAN: This was the turning point in the V. Not only was the Fed holding rates, over in Europe the ECB cut deeper into negative territory.
And even Japan joined that club.
UNIDENTIFIED MALE: Bad news for Main Street, good news for Wall Street because they're not going to raise rates so that's when things start to
take off.
SEBASTIAN: Even on the up side of the V, there's a big fear ahead.
ANDERSON: Now we're going to have earnings season coming up and we're probably going to have, you know, S&P earnings down anywhere from 3 to 6%.
SEBASTIAN: V for volatility most agree is here to stay and as for the shape of the next quarter -- what happens after the V? Do we get a W?
VALDES: Well, you could get a W but we'll have to see but I think the V stays with us for a while, I mean the V could go Himalaya.
SEBASTIAN: Clare Sebastian, CNN Money, New York.
(END VIDEO CLIP)
QUEST: All of which raises the question of what's next. Now the architecture world is mourning the passing of Zaha Hadid.
Zaha Hadid arguably the world's best known female architect, certainly probably the most successful.
(BEGIN VIDEO CLIP)
QUEST: She was born in Baghdad in 1950. Her influence today is reflected in major works around the world, not the least the Olympics Aquatics Center in
London, the BMW Center in Germany and the Grand Jous Opera House. Some of her most famous work.
[16:25:10]
QUEST: As part of a program on architecture back in 2007 I had the honor and the privilege to visit and meet Zaha Hadid in Rome.
ZAHA HADID, FEMALE ARCHITECT: Structural work was always a very exciting part of the process. I mean for example, I look at this building, there is
no columns. Because all the walls and you think about that from the beginning, you know all the walls are structural.
QUEST: Zaha Hadid is building Italy's first National Museum of Contemporary Art, The Maxi Museum. It's due to open next year and Rome has never seen
anything like it, either in scale or design. This is the kind of risque project that has made Zaha Hadid who she is.
Did you have to be careful when you were conceiving this museum here, this Art Gallery here?
HADID: Yes, but I think it does not preclude invention. I think that this city became important because over many years they reinvented themselves.
They were not kind of firmly static. I think the pressure is on the 21st century on these cities to remain untouched. And I understand because
there was so much destruction done but I think that you have to have kind of a really good mixture of conservation, preservation and invention.
QUEST: Zaha Hadid is best known be for pushing boundaries, designing buildings in a way that others dared not imagine. After starting her
architectural practice in 1980, she had to wait 13 years to complete her first project, the Vitra Fire Station in Germany. In 2004 she became the
first and only woman to win the Pritkser Prize. Architecture's Nobel equivalent. The jury cited her endless source of originality and her
ability to shift, as they put it, the conventional geometry of buildings.
You have a reputation for pushing boundaries, is that fair?
HADID: That's fair.
QUEST: Which boundaries have you pushed would you like to think?
HADID: Well I mean I think that, you know, I did not accept -- it wasn't just me, many -- some other people as well, you know, we did not believe in
-- when I was in school and after that in the late -- in the early '80s that there was no progress. I mean, it was just a desire that one could -
that life could not have stopped, you know, a few thousand years ago. The idea was to kind of always invent a new idea. And that was the ambition.
(END VIDEO CLIP)
QUEST: Zaha Hadid who died today.
(COMMERCIAL BREAK)
[16:31:03] RICHARD QUEST, CNN ANCHOR: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a minute.
When the U.S. Woman's Football Team want a level playing field when it comes to their pay, we'll talk about that. And some of the biggest names
in corporate America are united against a controversial bill, a new law, actually, in North Carolina. Before that, this is CNN and on this network,
the news always comes first.
At least 22 people have been killed in the Indian city of Kolkata after an overpass collapsed on to a busy street. Researchers are searching for
dozens more who are missing. The underpass had been under construction for five years when it gave away. As CNN's Sumnima Udas, reports, Indian
officials now say they don't know the scale of the tragedy.
(BEGIN VIDEO CLIP)
SUMNIMA UDAS, CNN, CORRESPONDENT: They have no way of knowing exactly how many people were here because, of course, this was not a building where
they can figure out how many people were in that building. This is a very busy crowded thoroughfare. Underneath this spire where I'm standing here
right now, it's about 100 meters from where the flyover collapsed. Right over there. You can see those big machinery, heavy duty machinery, yellow
cranes over there, they've been trying to pull out the concrete, trying to pull out as many survivors as they can.
It's been very, very difficult to figure out exactly how many people could be here again because officials just don't know. This is such a crowded
part of this city. There are hundreds of officials here. There's a fire brigade. There are army personnel. There are the Kolkata police are here
as well. Everyone is involved. But right now they say they just don't know how big this can be.
(END VIDEO CLIP)
QUEST: In Turkey seven police officers have been killed and at least 27 people wounded in a car bombing. It happened in the eastern part of the
country according to a semi-official Turkish news agency. It is not clear who is responsible for the attack.
A Belgian court has ruled that the terror suspect Saleh Abdeslam can be extradited to France. Abdeslam is wanted there over last November's Paris
attacks that killed 130 people. The two countries will now decide together how best to proceed with the extradition.
South Africa's constitutional court has ruled that the President, Jacob Zuma, must repay a portion of the $15 million of public money that is spent
renovating his private home. In a statement Mr. Zuma's administration said he will reflect on the judgement.
Amnesty International says it's uncovered widespread abuse of migrant workers at world cup venues in Qatar. The new report from the human rights
groups says workers complained of squalored living conditions and late payments of wages among other issues. Qatar says many other problems
detailed in the report have already been addressed.
The United States, Japan, and South Korea say they remain united in keeping North Korea from upgrading its nuclear capabilities. That was the renewed
pledge after President Obama sat down with South Korea's President and Japan's Prime Minister on Thursday.
The world leaders have gathered in Washington for a major nuclear summit that we were talking about earlier in the program. It's all devoted to
securing nuclear material around the world. The leaders are discussing how they can keep it from falling into the hands of terror groups like ISIS.
In the wake of the Brussels attacks, Lithuania's President said Europe is not prepared to battle the threat of terrorism and NATO should take the
lead. I asked the President what she'd like NATO to do.
[16:35:00] (BEGIN VIDEOTAPE)
DALIA GRYBAUSKAIT, LITHUANIAN PRESIDENT: It is about, again, sharing of best practices and information and to teach sometimes other organizations
as the European Union how to do it. Because at least between the member states and even inside the member states as we saw in the case of Belgium,
the information is not going around and is not used. The same with database on fingerprints, database on their immigrants -- illegal
immigrants especially coming into Europe, particularly stays on national basis and not shared between the member states.
QUEST: So those in the European Parliament who still see this in terms of the exchange of passenger name records and personal data, to those in the
European Parliament who are still seeing this as being a civil rights, a civil liberties issue, what would you say?
GRYBAUSKAIT: We need to find the balance between protection of civil rights and human rights, of course, but also to secure ourselves and to
deal with our security matters in Europe especially. Because the dangers are changing, they're different, they are growing. And our reactions and
discussions are still outdated and it looks that we are living a real life. On the streets we have open terror, open war against the humanity and
people. But in their parliament, or in some member states, in some political circles we're still discussing theoretical things which are far
away from reality happening on the streets.
QUEST: If I understand you right, Madam President, you're looking for a harsher response?
GRYBAUSKAIT: I think that only to discuss, only to talk how bad it is, is not enough anymore. We need to fight back. We need to protect our people.
And security for all people in the United States, in Europe, everywhere is becoming more and more important.
QUEST: You talked about NATO. You'll be familiar, of course, with Donald Trump's view that NATO is obsolete. Is he right?
GRYBAUSKAIT: Usually I'm not commenting there, on any sayings of any politicians inside my country or outside, but I can only confirm that NATO
for us was important, it is important and will be very important in future because of a lot of reasons.
QUEST: So I'm trusting my -- I'm trusting my luck if I say do you find many of Mr. Trump's policies, particularly, for example, on Muslims and
the issues to be taken, do you find -- do they find favor with you in any way?
GRYBAUSKAIT: As I said, I cannot comment as president and we cannot intervene into internal, especially pre-election discussions and battles,
but in European Union we have policies, especially on the freedom of religion, on equality of nationalities, we have very diverse society as
United States also. So I think that these questions are very sensitive. They cannot be divisive in this new era of challenges, we need to unite our
people in our countries, not divide.
(END VIDEOTAPE)
QUEST: More popular, more successful and yet paid less than their male counterparts. Top American female players are now suing the U.S. soccer
for better pay after the break.
(COMMERCIAL BREAK)
[16:40:23] QUEST: Chief execs for more than 80 companies have now written to the Governor of North Carolina in protest over a new law that they say
gives gay, lesbian, transgender and bisexual people open to discrimination. The governor signs the bill last week. It restricts cities from passing
non-discrimination laws. And it reverses an existing law that was put in place in Charlotte, North Carolina. Bands transgender individuals from
using public bathrooms from the sex for which they've identified with requiring them to use the sex of their birth certificate. These are some
of the companies who signed the letter. The NBA says it could pull next year's All-Star games from Charlotte. The Equality Campaign is saying more
action is coming.
(BEGIN VIDEO CLIP)
CRISS SGRO, EXECUTIVE DIRECTOR, EQUALITY NORTH CAROLINA:I think that what you're seeing in this letter is just the tip of the iceberg, frankly, in
terms of business concern. If you think that there are not calls that are being made to Governor McCrory talking about people's concern over whether
they want to continue to do business in this state or potentially relocate here, then we're fooling ourselves.
(END VIDEO CLIP)
QUEST: Brett Taylor signed the letter. He's one of the executives. He's the chief executive of the tech company Quip and former chief technology
officer at Facebook. Brett Taylor, thanks for joining us. It might sound an obvious question, but why did you sign the letter?
BRET TAYLOR, CEO, QUIP: Primarily on moral grounds, but beyond that, speaking to the business concern, which is the focus of this segment,
really in technology we're really about talent and to our company's success is based on getting the most talented technologists we can hire, and that
includes all races, all gender identities, all sexual orientations and really this bill is incredibly bad for business, and particularly for
technology businesses.
QUEST: But it did legitimately and legally, albeit somewhat unorthodoxly in the space of a day, it did pass the legal requirements of North
Carolina.
TAYLOR: It did, and, you know, unfortunately they didn't really engage the business community as many other states have. You know, in Georgia many of
my colleagues in the technology industry worked with the governor there to inspire him to veto a similar class of bill. I think now the business
community that I'm affiliated with is working on trying to repeal this bill. It's fundamentally discriminatory and really bad for business and I
think you look at North Carolina with a wonderful University system, like Duke, University of North Carolina, NC State, this is a state that should
be focusing on getting more businesses and more talented people to the state and they seem to be wanting to do the opposite which I think is
backwards.
QUEST: The North Carolina situation is more difficult in some senses now because the law has been passed. This is going to require lawmakers who
have only just voted for it to potentially now vote to repeal the very law, which is different from Georgia where it got stopped at the governor's
desk. So it's more difficult this one, isn't it?
TAYLOR: Absolutely. And I think our role if we as business leaders have a role in this is to articulate why this is so bad for businesses in North
Carolina. I think you're seeing businesses like Bank of America that already had a huge base there coming out in support of it and businesses
like mine that have plans to do business there and articulating a clear reason why it might reduce jobs in the state and provide a compelling case
for that.
QUEST: Ultimately if you make a threat, it has to be followed through surely. So, for instance, in the Georgia case, Disney said they would not
make movies in Georgia if the governor signed. In this case does there have to be a sanction by these companies literally ripping up contracts,
stopping investment for North Carolina and other states to realize you're serious?
TAYLOR: Absolutely. And I think, you know, obviously I'm in a smaller startup now and my previous job at Facebook, most of the larger companies
that are on this letter with me are actively pulling out of opportunities they previously had in North Carolina. I've already heard of stories of a
movie being moved from North Carolina to Canada and, you know, obviously with the huge tech center in North Carolina, I think there is a lot of
teeth to this and I think that most of my colleagues plan on following up with genuine action if this bill doesn't get repealed.
[16:45:04] QUEST: Other states are coming on board here. I believe, and maybe you're not as familiar as I am, Mississippi has a similar state, one
that even goes further, allows people not to do business with those who have had extramarital affairs. Every time one of these states passes a law
like this or a law is on its way to the statehouse, will you sign more letters?
TAYLOR: I mean, fundamentally we as leaders of this country and leaders of businesses within this country fundamentally believe that discrimination is
bad for the country and bad for business. So when these bills come out and they're really thinly veiled attempts to exclude an important and
meaningful part of society from participating in the products that we build and the companies that we're building, we will come out against it.
Because it's not only a moral issue, it's also a business issue.
QUEST: Brett Taylor, thank you sir for joining us and talking about this. We appreciate it, sir, thank you.
TAYLOR: Thank you, of course.
QUEST: The issue of the North Carolina and companies that are writing letters, it's the theme of a Profitable Moment which is in today's
newsletter. To subscribe go to QUEST MEANS BUSINESS. I'll start that. Aim so overcome by the whole thought of it. You go to cnnmoney.com/quest.
This is a newsletter that arrives at the end of the New York day and just in time for Asia to open business.
They are the champions of the world. They are fated as heroes. They're receiving ticker-tape parades in New York City. And now five members of
the World Cup winning women's football team are suing the U.S. Soccer Federation. Why? Because they say they're paid less that the men. So let
me give you some examples. The women are paid a maximum of $4,950 if and only if they win a friendly match, and they're paid $5,000.
Men get paid even more. They get up to 5,000 even if they lose and they can earn up to 17,000. U.S. Soccer made 5 million from women's football
events last year and lost $1 million on the men's events. A short time ago the U.S. soccer released a statement responding to the lawsuit. Said we
are committed to and engaged in negotiating a new collective agreement with Women's National Team Players Association, but what's going on? Hampton
Dellinger, is an attorney who has represented women's soccer players like Abby Wambach and Marta in a discrimination suit against FIFA. I asked him
why there's a wage gap in the first place.
(BEGIN VIDEOTAPE)
HAMPTON DELLINGER, ATTORNEY & PARTNER, BOIES, SCHILLER & FLEXNER: It doesn't appear defensible. If there is one America's team, it's the U.S.
Women's National Team and we are a country that believes in pay for performance. And the U.S. women have performed. They have excelled on the
pitch and it looks like they're being discriminated against. So there's a glass ceiling off the pitch.
QUEST: Right. But why do you think that is the case? I mean, in -- the men's team earned 9 million for the 2015 -- '14 world cup. The woman's
team which won only won -- only got 2 million. Women earned less for winning than men do for losing.
DELLINGER: That's right, and it's not right. And part of what U.S. Soccer will do will be to blame FIFA. But if you're relying on FIFA to
justify what you're doing, I think you have a problem. So the U.S. women, it appears, have a very strong case. They performed on the field. They've
proven their worth off the field and yet they are being provided less resources year in and year out than the men.
QUEST: You'll be familiar with the recent tennis hoo-ha over comments about the women's tennis riding on the back of men's tennis and, therefore,
various people have had to eat a lot of humble pie over that, but this isn't the case, is it?
DELLINGER: That's right. When you look -- when you drill down on the numbers, it looks like the men are riding on the coattails of the women.
QUEST: So you've looked into this in great detail. Why do you think it is that this is the situation? What have you heard that they use as the
justification?
DELLINGER: Well, the men clearly need help. They need more help. But charity should not be an excuse for unequal treatment. So if U.S. soccer
opens the books, reveals their contracts and shows the worth of the women, and then says we would like to pay the men more because it costs more for
us to get a big-time coach for the U.S. men than for the best women's team in the world, the U.S. women. That's one thing but U.S. soccer has not
justified this on charity, they've justified it on facts and the facts are a problem for them.
[16:50:00] QUEST: Do you think this is a finally just a straightforward case of good old-fashioned sexism?
DELLINGER: It is. But it's the worst kind. It is the women who have proven themselves every step of the way. Who are driving the revenue and
the men who are getting a handout and a bailout? It just doesn't make sense and it may not be legal.
QUEST: Well, this is what the -- this is what the case that's going to the Equal Opportunities Commission will discuss. Why don't the women just go
on strike? Why don't they just simply say, the facts speak for themselves. Pay us what we are worth. At least pay us the same as the men or, frankly,
you know where you can stick that football?
DELLINGER: Well, I know these women's players, and they play by the rules. First of all, they put their sport first so even when they were put on a
second class surface for the World Cup, they showed up and played, when some people suggested they should strike. Now there's an open legal
question about whether they had the right to strike and so they are making their case in court. And time and again these women players have excelled
and they've played by the rules.
(END VIDEOTAPE)
QUEST: Busy day across a range of stories and you're hearing it all in our nightly conversation. Now let's hear a little bit more where we can think
about how we can "MAKE, CREATE, INNOVATE."
(COMMERCIAL BREAK)
QUEST: So never mind the old QMB bell. Today I ring for you the Bulgarian bell. It was given to me by the country's tourism minister. Nikolina
Angelkova is grappling with the same challenges many of her European counterparts, how to attract more visitors with our growing security
concerns across Europe and the ever deepening and worsening migrant crisis. The minister joined me in the C suite. I asked her how concerned Bulgaria
is ahead of a summer when the number of migrants heading to Europe may increase.
(BEGIN VIDEOTAPE)
NIKOLINA ANGELKOVA, BULGARIAN TOURISM MINISTER: We are concerned, of course, and we are following everything that is going on the scene, in
particular with the immigrants' crisis. Because Bulgaria is a neighbor with Turkey, we are neighboring with Greece. It is very important for us
to be prepared. This is what we are doing. We have prepared, we have played different scenarios in case Turkey's completing the agreement, in
case the agreement might not be completed. So far Bulgaria is a very safe destination, and we are really very much focused on what is going on and we
are participating actively at the level of prime ministers, foreign ministers, interior ministers. This is a great challenge.
QUEST: It is a great challenge. Where do you fear the majority of migrants will come from? Through Turkey or through Greece?
ANGELKOVA: Through Greece. Through Greece. For the moment there is a lot of concentration in Greece and -- but so far there are not so many
immigrants crossing the border and coming to Bulgaria.
[16:55:00] We are registering every single immigrant and we have really very strong policy as regards to immigrants and there are not many crossing
our border.
QUEST: You're the minister of tourism and you're trying to obviously sell beautiful experiences.
ANGELKOVA: Absolutely.
QUEST: But you've got Brussels to worry about, the attacks, you've got, I mean, Egypt yesterday, you've got Paris. How difficult is it now to put in
place a tourism policy in these difficult security times?
ANGELKOVA: Well, as I said, this is the challenge of today's world, not only in Bulgaria but everywhere. Everywhere. In every single country this
is part of our daily work. And for the moment Bulgaria, and in particular the data shows that we are one of the most preferred countries for the
summer. Due to the active role that the ministry took since May last year, as regarding the promotion of the country.
QUEST: So what do you -- what's going to be your theme for this year and next year? What are you selling basically?
ANGELKOVA: Well, we are selling Bulgaria as the best destination value for money.
QUEST: Right.
ANGELKOVA: Because we have everything. We have sea, we have mountains, we have a lot of natural resources like mineral water, we have cultural
historical monuments, more than 40,000, and we are in the third place with Italy and Greece, but we are the best value for money. We are very -- our
people are very -- with a great hospitality.
(END VIDEOTAPE)
QUEST: Bulgarian tourism minister, and now we have a nice new ornament for the library. We'll have a Profitable Moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment. The V-shaped quarter with the market up just over one and something percent over the course of the first three
months. It just proves you what difficult days there are.
[17:00:00] That's QUEST MEANS BUSINESS for tonight. I'm Richard Quest in New York. Whenever you're up in the hours ahead, I hope it's profitable.
Let's get together tomorrow.
END
