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Quest Means Business

Rate Rise Chances Dwindle after U.S. Jobs Report; U.S. 151,000 Jobs In August; Perez: We Know the Formula for Progress on Jobs; Perez: U.S. Needs Infrastructure Investment; Young Graduates Turn to Blue-Collar Jobs; Spain's Acting Prime Minister Loses Vote for Second Term; Samsung Recalls 2.5 Million New Smartphones; Remembering Joe Sutter: The Father of the 747; First Mosquitoes Carrying Zika Found in Miami Beach; Alibaba's Jack Ma; Free Trade Stops Wars; Jack Ma: Big Believer in Globalization; G 20 Summit: Africa's Growing Influence; U.K. Study: Shoe Color Could Decide Job Success;

Aired September 02, 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, CNN ANCHOR: Thunderbirds ringing the closing bell on Wall Street. The Dow is up 73 points. The U.S. Thunderbirds were

appearing at the New York air show this weekend. And I have a feeling this gentleman -- look at that, you won't argue with that strong gavel, which

brings trading to a close on Friday, September the 7th.

On tonight's program, the rates. Will they go up? The numbers coming from the U.S. jobs. We talk to the jobs secretary.

Samsung recalls this year's hottest phone, literally and figuratively.

And burned by unspoken fashions. Brown shoes and loud ties. Now if you wear both, it could cost you your job. I'm Richard Quest. It's a Friday.

But be assured, I mean business.

Good evening. Tonight, it's a case of wake me when September ends. The chance of a rate rise this month has dwindled after a middling, mediocre

jobs report that possibly, probably some would say, will fail to force the Fed's hands. Now, the United States added 151,000 jobs in August, 151. If

you look at the number, it's arguably respectable, when you look at the line compared to previous months all the way to 2015 over the last 12

months.

But it is considerably lower than July's stonking 200 plus and June's very high number. So it was worse than expected and lower than the previous

months. August has historically been a weak month, and the employment rate stays at 4.5 percent, which is considered by some full employment, although

not by the labor secretary as you'll hear in a minute.

Why is this number so significant today? Because it's the number the Fed is going to focus on, amongst others, being data dependent, when it looks

at raising interest rates, on the September rate rise, which the Windows seems to be closing. There's only two meetings before the end of the year.

And the meeting in November comes less than a week before the election. Look, you've got September's. You've got wage growth, manufacturing, and

GDP growth all seeming to suggest. But you have the November month, which of course is just immediately before the election. Almost inconceivable

that they would raise rates on election day itself.

So the Fed may want to see improvements in the U.S. economy before they actually act. Particularly bearing in mind you've got that wage growth and

the factory sector shrinking for the first time since February and the growth has been fairly weak overall. Put it all together, and you have

very much attention focusing on the meeting on September the 21st. I talked about these details with the U.S. Labor Secretary, Secretary Perez,

and asked him, when you look at the month that we've just seen, the numbers were middling at best.

(BEGIN VIDEOTAPE)

THOMAS PEREZ, U.S. LABOR SECRETARY: We know the formula for making additional progress. We need to have significant investment in

infrastructure. And we need it, and they create jobs. We need to pass immigration reform. We need to pass an increase in the minimum wage.

These are three issues that have always been bipartisan, but we haven't been able to find a dance partner in the Republican Party. You do those

three things and you can bring the unemployment rate into the low 4s, I have no doubt about that.

QUEST: Donald Trump has called into question the statistics on unemployment, on job creation. And he basically -- I think he says that

they're rigged -- but the gist of what he says is that the statistics that your department is producing is not showing the real position. You've

heard the accusation, sir.

PEREZ: I'm here in my official capacity. I'll simply say this. Every election cycle, we hear from people who say that the books are cooked.

I'll note parenthetically that three months ago, in May, when our job numbers were something like 40,000, they were very low, none of our

opponents were suggesting at that point that the books were cooked. Stunningly.

[16:05:00] And, you know, the reality is our Bureau of Labor Statistics does fantastic work. And the reality is that when I hear suggestions from

some that the unemployment rate is 40 percent, they need to include my 93- year-old great-aunt. They need to include my 13-year-old who is just about to enter high school. And a bunch of other folks who for good reason

aren't counted in our numbers.

Here's a real fact. And I think it's important during every period to deal in facts. Over the last 35 plus years, we've had 20 years of Republican

control of the White House and 15 and a half years and counting of Democratic control of the White House. Net new private sector job growth,

jobs gained minus jobs lost, during 20 years of Republican rule was about 15.8 million net new jobs. Net new job growth under the 15 1/2 years of

Democrats is 30.8 million, more than twice as many jobs gained under a Democratic president with four years plus less time than Republicans.

Those are the facts. I know the facts are inconvenient for some. But those are the facts.

(END VIDEOTAPE)

QUEST: The U.S. Labor Secretary, Thomas Perez always good to have him on the program.

The Dow as you can see, remember the number comes out early. You put in a hundred at the start of the session. It did fall back. Although, in the

late afternoon there was a rally of up 72 points, a gain of nearly .4 percent. And it finishes the week up less than one-half a percent. Market

volatility is at its lowest level in some years. Everything we've said this week about the markets has to be tinged with the notion and the

knowledge that it is a long holiday weekend, it is the Labor Day weekend which traditionally signals the end of the summer season. So everything is

going to be a bit slow. Diane Swonk of DS Economics joins me. Delightful to see you looking so flowery and summery to join us.

DIANE SWONK, FOUNDER AND CEO, DS ECONOMICS: It's summer, I had to be flowery.

QUEST: I was about to say though, you're doing duty even just before Labor Day weekend, good to see you.

SWONK: Yes, I am. The labor numbers were, as you said, they came in less than expected, 126,000 in private sector employment jobs. We had losses in

manufacturing, construction, in the mining sector. And those wages, as you noted, I think that's the most important issue for the Fed, is the slowdown

in wage growth. It decelerated not only on a month-to-month basis but year-over-year. Now that could be because of our quirky August. But the

bottom line is when your data dependent as the Fed says it is, and also event dependent -- remember this is the Fed that delayed to raise rates in

June because of the Brexit vote because that to occur one week after they had met. They are forced to delay again. Back to the sidelines with the

sort of not as good of numbers.

QUEST: I've got my diary, my calendar here. You think no move on September the 21st.

SWONK: No. No move on September the 21st. Which is also, by the way, the same day the Bank of Japan is going to be meeting as well. I'm somewhat

relieved now that we've got a lot of data between now and then as well. Retail sales, the auto sales for the month of August, also slumped. And

that's going to hold down retail sales. As you already mentioned, the manufacturing sector not doing so hot. That's going to show up in

industrial production to.

QUEST: November the 2nd, is a week before the presidential election, that's political suicide. Even for those who claim -- look I can even see

you shuddering at the thought.

SWONK: I know. I'm shivering at it. No, they're not going to do it on that date, you're absolutely right. There's just no reason, why step in

the middle of it? The Federal Reserve is already a political pinata from both sides of the aisle. They are being attacked. Why would they step

into the middle of it at that point in time? Wait another month.

QUEST: Here's my problem, then. We have interest rates not just low but historically and dangerously low if inflation were to start. You've got

growth of 1.5 to 1.89 percent in the U.S., 2 percent in the U.S. economy. You've got virtually full employment. And you do have inflation nudging

1.5 percent on a target of 2. It's not unreasonable to say take a bit of the rate off the table.

SWONK: There's no question about it. I mean, the Fed could raise rates. And I think they will in December. But there's also the other issue there,

I think, you know, if you really think of inflation target of 2 percent as being symmetric, this is still something that they don't quite agree on

within the Fed. You should be running the inflation rate below 2 percent for as long as you run it over 2 percent. So it's not just you're trying

to get to 2 percent. You also maybe want to overheat a bit to catch up on what you've lost since the great recession.

[16:10:00] That's one of the sticking points is, one, is inflation high enough to justify sustained growth, the slowdown in wages. This month, and

not only I think, however until they have proof that it's not an anomaly, they can't move forward on that. And on the second issue, they want to

have inflation a little hotter down the road, which is a more a debatable issue. The third issue I think is more important that you raised, and that

is financial stability. What are we doing, are we seeing additional bubbles out there? And that is coming up within the Federal Reserve as

well. The question Is can raising rates alone deal with that? Is that the right way to deal with it? And that's going to be a debate that's very

heated over the next year.

QUEST: Since it's Labor Day weekend, we can afford to have a have a slightly grander thought and philosophical thought. Why do you think with

rates at this low level, and employment this low level -- unemployment at this low level, we're not seeing the stoking of inflation? By everything

that you and I were taught, inflation should have been bubbling up by now.

SWONK: Not necessarily. Everything I was taught, we had about 80 percent of all wages in the United States, when I was young, Richard, when was a

long time ago, were actually tied to cost of living increases, union contracts, even if it wasn't a union contract, was tied to the CPI, and

then increases on top of that. We had a vicious cycle where as inflation picked up, wages picked up and then people got merit increases on top of

that. And that baked into the cake an automatic trigger that we had. We broke that down in the 1990s. What we've seen more recently is although

entry level wages are starting to pick up, and we have seen state and local minimum wages pick up, we're still talking about a very tepid pace of

overall wage gains of only 2.5 percent or so, and that's the real issue.

QUEST: I'm sure you're looking forward to starting your long weekend, I'll should let you get your bucket and spade. Thank you very much indeed for

joining us. Thank you.

SWONK: Thank you.

QUEST: Diane Swonk, making excellent common sense of difficult economics.

The unemployment rate for people under the age of 24 is at least double the national rate. More young graduates are turning to blue collar jobs in

order to get their careers started. As Clare Sebastian discovered.

(BEGIN VIDEOTAPE)

ELLIE BRIENZA, APPRENTICE ELECTRICIAN: It's just awesome. I love it. And I wouldn't trade it for the world.

CLARE SEBASTIAN, CNN CORRESPONDENT (voice-over): Ellie Brienza says you only become a true electrician when you decorate your hardhat. And at 22,

she is well on her way. Today installing a fire alarm system at a Staten Island Library.

BRIENZA: Fire alarm, it took me a little while to learn. Because it's a lot of technical things and a lot of in and out wiring.

SEBASTIAN: While her friends are all in college, Ellie starting her fifth year of a fully paid union apprenticeship.

BRIENZA: I already started my life, I already have a career. They're four years behind me.

SEBASTIAN (on camera): You were in high school when the great recession hit. Has that in any way informed your decision about what to do with your

career?

BRIENZA: I didn't have a lot of money growing up. Knowing that I can have a stable job for the rest of my life and good wages, like really good

wages, I'm not working for $40,000 a year, I'm working for a lot more than that. So yeah, it did affect my decision a lot.

SEBASTIAN (voice-over): More and more millennials like Ellie are starting to look at careers in blue collar industries, seeking skills and stability.

This was the line around the block for a carpenter's apprentice program in New York last month, many camping out overnight.

GARY LEBARBERA, PRESIDENT, NY BUILDING AND CONSTRUCTION TRADES COUNCIL: We see literally thousands of people, you know, lining the streets, going

around buildings, to get an application so they can have a shot at getting into the apprentice program. And we see with the amount of work that we

have really, really increasing and we'll be very robust in New York certainly for the next several years.

SEBASTIAN (on camera): It's a trend that's happening throughout the U.S. In the first few years after the great recession here in the U.S., the jobs

that came back the quickest were the lowest and the highest paid professions. Since 2013 though that has been reversed and now the real

growth is happening in the middle.

(voice-over): Despite that shift Ellie says many are still surprised by her blue collar career choice.

BRIENZA: It's like, oh, really? Why?

SEBASTIAN (on camera): And what do you say?

BRIENZA: I have a skill. You can't take that away from me. Nobody will ever take that away from me.

SEBASTIAN: Clare Sebastian, CNNMoney, New York.

(END VIDEOTAPE)

QUEST: Now new into CNN, the Spanish parliament has voted to reject the acting prime minister's bid to form a minority government. It's the second

time that they've rejected it in three days. Mariano Rajoy also lost a confidence vote to serve a second time as prime minister. So the country

goes one step closer to holding a third election in a year.

[16:15:00] The political turmoil has not, seemingly, impacted the economy, which seems to manage quite nicely without the government. Spain's GDP

jumped 3.2 percent in second quarter, nearly double the rest of the EU. Unemployment has now fallen to the lowest level in some six years. It's

still distressingly high by other EU levels. And tourism is up 11 percent over last year, the beneficiary of terrorism concerns from France and from

North Africa. Joining me now is Ignacio de la Torre, chief economist at Arcano Group a Madrid based investment bank. He's in Huelva, Spain. Sir,

thank you for joining us, good to talk to you. So the issue is, are you know pretty certain there will have to be another election before the end

of the year?

IGNACIO DE LA TORRE, CHIEF ECONOMIST, ARCANO GROUP (via telephone): Not quietly, because you look at the local election happening at the end of

September. After those, you might see a change in some of the political decisions taken by the socialists. So I wouldn't give it for certain there

will be a third election.

QUEST: But if they can't agree, what form of -- I mean, what form of coalition government do you think would be able to be passed by parliament?

DE LA TORRE: For Rajoy to become president or another candidate of the PP, basically we would seed the socialists to abstain later in October. At the

end the key issues will be appraised by the socialists and the popular parties to compare it with Russia. We need to make an adjustment of 15

million in our budget. Otherwise we'll be fined 6 million euros. So is having to be an agreement between both large parties.

QUEST: So do you think that really what's happening in parliament now is horse trading, ready for each side to get the best deal they can for a deal

that will eventually be done or that, frankly, people are prepared to go all the way if necessary?

DE LA TORRE: My personal idea is that there will not be a third election. There will be a change in the decision of the Socialist Party in October.

QUEST: And extraordinarily through all of this, nine months without a strong government or without a government, and the economy seems to be

doing quite nicely, thank you.

DE LA TORRE: Indeed, indeed, actually 59 percent of GDP consumption. So the question is, do we not go more or less have dinner with friends because

we don't have a government? The answer is we don't care. Typically, because we go out to have dinner depending on job growth and depending on

salary growth, and depending on house prices and the three of them are doing very well.

QUEST: Perfect way to look at it ahead of a long weekend. Sir, thank you for joining us on the line from Spain.

A look at the European markets, which soared to the highest levels since April. And there were good gains across the board. London's FTSE led the

way with more than 2 percent along with Paris. With a pleasing U.S. job report likely to delay the results of an U.S. interest rate hike. But even

so having had a week in which we've seen tepid numbers out of Europe, this was a strong reaction.

I need for you to think of it as being too hot to handle, literally and figuratively. Samsung's new phones are catching fire, which could throw

water on its campaign to take on Apple.

(COMMERCIAL BREAK)

[16:20:24] QUEST: It's not supposed to take a look that, clearly not. Samsung is now recalling millions of the Galaxy Note7s after reports of the

smart phone can catch fire while it's charging. The company is offering to replace all 2.5 million devices that sold so far. The Galaxy Note sells at

least $850 in the U.S., but this is a traditional apology that you get in Asia, a lot of bowing. Samsung isn't saying how much the recall will cost.

One executive admits it's a large amount and is heartbreaking.

Samsung is locked in a fierce battle with Apple for the smartphone market. Look at the numbers that you can see on the phone. The Galaxy 7 was

unveiled a month ago to go head to head with Apple's iPhone 7, expected to be released next week. By the way, this is what it is -- I better make

sure there's nothing personal, this belongs to one of my colleagues. This is what it's supposed to look like. Lance Ulanoff, Mashable's chief

correspondent and editor-at-large, delighted to see you. What went wrong?

LANCE ULANOFF, CHIEF CORRESPONDENT AND EDITOR-AT- LARGE, MASHABLE: So these 35 reported units that have exploded on recharge. This has happened

before, where we've had some smartphone issues. It's in their pocket, it blows up. They were charging it. But I've never seen this happen so

quickly. The phone only came out about a month ago. And it was super well reviewed, excellent product. We started hearing rumbles first about some

supply chain issues. Then we heard rumbles just like a week ago, about maybe this little issue with some charging problem. Suddenly, Samsung

comes forward yesterday and says we're not shipping them anymore. Then this morning they say, look, we are going to stop selling them and we're

going to do an exchange program for all the phones that are out there.

QUEST: So either, either engineers very quickly got to the bottom of what it is. Or they're being ultra-cautious and saying, listen we've got 35,

our algorithms told us we might have three or four problems, we have 35, we have a problem, deal with it.

ULANOFF: It sounds as if they got to the bottom of it. They say it's an issue with the battery, with one of the batteries. Oftentimes they'll have

multiple suppliers. But they know it's a battery issue, and so they need to get these phones back, either to swap out the battery, give them brand-

new hardware. That does mean that since there's no question about what it is, they can move more quickly. And yes, there's an abundance of caution,

because when you have 2.4 million sold and just 35 blowing up, it's not a widespread issue.

QUEST: You don't want the one that's going to explode in somebody's pocket, taking them with them. How much schadenfreude will there be from

Apple? Or is this a case with these companies where they say there but for the grace of god go I? We had it with the aerial, we had this.

ULANOFF: Apple's never had anything quite like this. I think back to antenna-gate, where everybody said the antenna's not right, and Steve Jobs

said you're holding it wrong. But I can imagine worst timing for Samsung. We are less than a week away from the launch of the iPhone 7 and 7 Plus.

At least that's what we think they're already called. The biggest phone release of the last two years from Apple.

Samsung was queued up with a fantastic product, fantastic reviews, boom they're going into the sky, and boom it blows up. Now they can't talk

about -- they're not going to be able to go hard after Apple when Apple comes out with their product. Apple won't say anything, Tim Cook is a

gentleman, he's not going to say something like that. He doesn't have to. This is a big mess.

QUEST: Thank you very much indeed. You put it in such beautifully blunt terms, there's not a lot more I can ask. Thank you very much indeed for

joining us, much appreciated.

Now, look at this. I could sit and play with this all day. What is it of course? Well, there are planes, there are airplanes, and then there is

this magnificent creature. The Boeing 747. The queen of the skies. And this of course is perhaps the most famous 747. It's a live picture coming

to us from Honolulu. It is Air Force One, awaiting the arrival of President Obama as he flies back to the continental U.S. He's on his way

to China, I do beg your pardon, for the G20. He was at Midway yesterday. Anyway, forget where the president is going. Let's just feast our eyes on

the beauty of the plane.

[16:25:00] Why are we all talking about these planes today? Because the world of aviation is mourning the loss of the forefather of the 747. His

name was Joe Sutter. He led the engineering team that developed the jumbo jet back in the 1960s. He has died by the age of 95.

The jumbo has been credited with opening up affordable travel and spurring the interconnected world in which we live in today.

If you come over to the wall, you'll see exactly why and how beautiful it is. Back in 1968, it was the largest plane in the world. You just got to

look. And what made it so special, of course, was the upper deck. The co- pilot on the very first flight of the 747 was Brien Wygle. I had the pleasure of remembering the life of Joe Sutter and his magnificent plane

with the man who helped fly it.

(BEGIN VIDEOTAPE)

UNIDENTIFIED ANNOUNCER: It is the day before first flight and a new dimension in air travel.

BRIEN WYGLE, CO-PILOT ON FIRST BOEING 747 FLIGHT: The first flight was a very exhilarating feeling. After all, it was the culmination of years and

years of effort and risk. Also the attention of the world was on Everett, Washington at that moment. There were journalists and airline executives

and all forms of the press from all over the world there.

UNIDENTIFIED ANNOUNCER (voice-over): June 30th, 1968. First giant 747 is presented to the world. This is a milestone in Boeing history, a time to

look forward and a time to look back.

WYGLE: You know, it was a very important moment. But I don't think that worried the three of us. I think we knew what we were doing. And we were

confident things would come out okay.

UNIDENTIFIED ANNOUNCER: Pilot Jack Wadlel. Co-pilot Brien Wygle. Flight engineer Jess Waller (ph).

QUEST: Joe Sutter led this phenomenal engineering operation was he an easy man to get on with?

WYGLE: Joe was very popular leader. And people liked him. He could be pretty brusque sometimes when he felt called upon to do so. But that was

not his normal nature.

UNIDENTIFIED ANNOUNCER: Inside the 747 program becomes a reality. From paper to metal, every system and subsystem installation is checked. Every

coupling, component, and calibration is scrutinized.

WYGLE: He was an exceptional man. He had I think a natural leadership instinct that allowed him to rally his engineers around him and get things

done. He got things done.

UNIDENTIFIED ANNOUNCER: The airplane grows.

QUEST: Finally, sir, when you are at an airport or when you see a 747 take off or fly overhead, what do you think? What do you feel?

WYGLE: I still feel a moment of pride, I think, mostly because it's an elegant airplane. And it has a certain wonderful feeling about it. And

the fact that I was very much a part of it still gives me just a twinge of pleasure.

(END VIDEOTAPE)

QUEST: And we will be back after the break.

[16:30:00] (COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in just a moment. We'll be talking to the mayor of Miami Beach the first

place in the continental United States with mosquitoes carrying the Zika virus. Will be talking to him about what can be done.

And Jack Ma tells CNN that free trade stops wars as the G20 heads to Alibaba's home town. Before all of that, you're watching CNN, and on this

network the news always comes first.

The FBI has released a report into their investigation of Hillary Clinton's emails, showing numerous times where Clinton did not recall specific emails

or incidents including on classified information procedures. The report is being made public after numerous freedom of information requests including

one from CNN.

Uzbekistan's government has concerned that the country's president, Islam Karimov has died. He was 78. His daughter said he had a stroke and was

taken to the hospital last Saturday. Karimov had led the nation since he declared independence from what was then the Soviet Union 27 years ago.

His death leaves Uzbekistan future somewhat uncertain. There is no official opposition and there is no clear succession.

At least 14 people have been killed and dozens more injured after an explosion at a market in the Philippines. The blast hit Davao City, which

is the hometown of Philippine President Rodrigo Duterte. Authorities still do not know the reason behind the blast. Eyewitnesses said they thought it

was a bomb.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE (through translator): it was a really loud blast. I saw arms ripped off. They were all dead. They had serious wounds on them.

It was a really loud explosion. It was really loud. It was a bomb. There was only one explosion.

(END VIDEO CLIP)

QUEST: Tropical storm Hermine is barreling through the Southeastern U.S. It came ashore in the Florida Panhandle as a hurricane causing flooding and

power outages. There's been one death reported. Forecasters say the storm could stall off the U.S. East Coast. Watches and warning are posted as far

north as Connecticut in the Northeast.

The hurricane I was just talking about could it help in the balloting against Zika in Florida. The Centers for Disease Control is telling CNN

that the heavy rain can disrupt the mosquitos' natural cycle, and that reduces the possible Zika transmission. Floodwaters could also wash away

the larvae and the breeding ground. It's all good news because mosquitoes carrying the virus have been found in Miami Beach. It's the first such

finding in the United States. There have been 49 locally transmitted cases of Zika in Florida so far.

Joining us now is Phillip Levine, the Mayor of Miami Beach. Sir, firstly, thank you. Secondly, we don't want to be alarmists in all of this, of

course not. But let's be real. Miami Beach is one of the most popular winter/summer destinations for Europeans, and for South America. You must

be very concerned about this.

PHILIP LEVINE, MAYOR, MIAMI BEACH: Well, Richard, I think the entire country is concerned about Zika. Let me just say really quickly, the

hurricane Hermine is in the northern part of our state, of course it hit Tallahassee, our state capital. I wish all of them well.

[16:35:00] And of course the great mayor of Tallahassee, Andrew Gillum, has done a very good job making sure his people are safe. We are an

internationally famous tourist destination. Everybody loves Miami Beach. People right now -- it's Labor Day weekend, Richard, if you can imagine.

The beach is crowed. It's packed. This is going to be a very packed weekend in Miami Beach. And we're doing everything we can to make sure we

safeguard the residents and tourists that are here. It's a small area. It's 20 blocks. But as you mentioned before, clearly we do have evidence

of mosquitoes that were and have been transmitting the virus. We're working with the state and working with the county.

QUEST: Anybody who looks at this with any degree of professionalism and experience will not be surprised. The experts tell me, look, it was just a

matter of time and just a matter of where. So the issue becomes for you what you can do, either to eradicate, if that's possible, or to mitigate.

LEVINE: Richard, I can tell you right now and I've said it before, the last thing in the world I'd ever want to be is a mosquito on Miami Beach

right now, because your days are numbered. We're coming at them from every direction. In this 20 block area we're working with the county and we're

literally target fumigating around specific areas to make sure we eliminate where their breeding grounds, where they are. We're eliminating water.

Our vision, what we're going to do is eliminate and control it completely. But it's going to take a little bit of time. We expected to have more

cases. There are cases in over 40 states around America. But we need help from the federal government. Congress goes back in session on Tuesday and

we hope they pass a Zika bill so we could federal resources to take care of this national problem we have. And of course, listen, we're working with

these new, they call them buffalo turbine trucks that we're putting in next week, which literally put out an insecticide, a larvacide, and kills these

mosquitoes in this small area. We're confident we'll get the job done.

QUEST: Just a couple of weeks ago there were reports that the money had run out for dealing with Zika. Now, let's not get ourselves involved in

party politics of whether Congress should have come back sooner, we'll leave that discussion for another day. But is it your feeling that the

administration and Congress recognize the seriousness and will put aside their party prepositions and come to a common view?

LEVINE: Well, I tell you, you know, mosquitoes they're not Republican, they're not Democrat, they'll bite anybody. I'm confident, and I think

it's a great opportunity for the Congress to kind of up their game and show the American people that when it comes to a crisis that affects all of us,

they're ready to take the necessary action. I'm confident they will. The White House is pushing them as much as possible. The delegation here is

very united.

QUEST: A difficult question for you, Mr. Mayor. But I suppose what it really comes down to is, you know, pregnant women, should they visit moment

beach?

LEVINE: The CDC has an advisory, obviously, for the 20-block area. That if it's not essential travel, in the 20 blocks, which by the way is a very

small section of our city, that they should avoid hit. What we're telling pregnant women who live in the area or may visiting that they should cover

up, they should wear mosquito repellent and they should take the necessary precautions. But I think what we want to do is always listen to the CDC.

They're an amazing organization. And we hope that Congress funds them so they can continue their operations.

QUEST: And if I know one thing from this, and listening to you, sir, the crucial point is to hit this with everything you've got and hit it fast,

and don't look back. Would you agree?

LEVINE: I would agree. But I think most importantly, what we're doing seems to be working. We're going to up our game even more with the county.

Of course, what we don't want to see is aerial spraying. It's something we don't think is necessary at this time. We're hoping that it's something

that can be avoided. But that will be a state decision, not a local or county decision.

QUEST: Mr. Mayor, I look forward to visiting your wonderful area, Miami Beach, in the future, sir. Thank you.

LEVINE: Thank you so much.

QUEST: We continue now. The founder of Alibaba says free trade can stop wars. Jack Ma talk to our CNN's Andrew Stevens. It's a rare interview.

You're going to hear it next on CNN.

[16:40:00] (COMMERCIAL BREAK)

QUEST: The weekend the Chinese city of Hangzhou is the host of the G20 summit. The eastern city is also the home of Alibaba. Its founder, Jack

Ma, is beating the drum for free trade saying, "It stops wars," in his words. He was talking to Andrew Stevens. It's a rare interview that you

don't want to miss.

(BEGIN VIDEOTAPE)

JACK MA, EXECUTIVE CHAIRMAN, ALIBABA: We want to tell the world there is a way to improve globalization. It's too late to go back. It's never too

late to improve yourself. So globalization, I'm a big believer. Because I've seen China happen in the past 20 years. If China can work in that

way, why the developing nations cannot have that way. If Chinese young people can use the internet buying a sale across the board, why not India's

small business? Why Pakistan's young people? Why Argentina's young people cannot do it? We should find a solution for them.

ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: Do you have a solution?

MA: Well, we call it electronic world trade platform. It's not electronic world trade organization. It' if definite to your organization, it's like

nearly 200 government leaders sitting in a room, they quarrel, they fight, because of the political reasons they stop the trade. We think trade is

something to stop the wars. Trade is something to improve the communications. When trade stops, the war comes. We should form a

platform to help the small guys. If a Philippine farmer wants to sell his products to Norway, to Argentina, there's no way. Only big companies. We

should make an open platform. Every country, every small business, every young people. If you want to get involved, just join it. We want to speak

on behalf of the business world. We need globalization. We need a free trade. This is the message.

STEVENS: But those voices are being drowned out at the moment.

MA: Yes, they are drowned out. This is why somebody has to talk about it. Imagine, how can you stop global trade? How can you build up a wall to

stop the trade?

STEVENS: I have to ask you this. You mentioned walls, you mentioned opposition to trade. We have a U.S. presidential candidate who is echoing

those very words.

MA: But I've seen so many elections. Every time there is election, people start to criticize China, criticize this -- well, you've got, you know,

curious and watching that and I think I have confidence that American will be calm down and politicians will do real stuff.

STEVENS: Hangzhou is hosting the G20. It is the home of Alibaba. Is there any coincidence the G20 is here in the home of Alibaba?

MA: I hope so. But I'm so proud of the city. Many people try to convince us for the people keep on asking -- why Hangzhou? Why not Alibaba's

headquarters in Beijing or Shanghai? Because this is a city with great culture. We believe in private sectors and entrepreneurs.

STEVENS: What has been the trigger to create that industry here?

MA: Hangzhou, we don't have resources. We don't have oil. We don't have coal. We have nothing. The only thing that we have is the culture.

People here pay more attention to education. 80 percent of the Chinese business, entrepreneurship is a unique thing. In South America, in Europe,

and Africa from our province.

[16:45:00] STEVENS: What lessons can Beijing learn from what's happened in Zhejiang province that they can apply to the broader Chinese economy?

MA: They went to move into domestic consumption. They want to move into the service industries. And we are proving it works. For our company

alone we proved that domestic consumption can be developed by private sectors. So I think we are getting much better now, the relationship,

because they trusted us.

(END VIDEOTAPE)

QUEST: Jack Ma talking to Andrew Stevens.

China's heavy investment in Africa is likely to be discussed at the G20 as well. Africa will have just one representative at the summit. Despite

that though, the continent's influence is growing, as Eleni Giokos reports from Johannesburg.

(BEGIN VIDEOTAPE)

ELENI GIOKOS, CNNMONEY AFRICA CORRESPONDENT (voice-over): South Africa is part of what's considered to be a premier group of nations, the G20. But

for ordinary Africans on the street, membership in this international club doesn't seem like a big deal.

UNIDENTIFIED MALE: I totally have no idea what the G20 is.

UNIDENTIFIED MALE: I think it's a salmon places.

UNIDENTIFIED FEMALE: G20 is not about environmental something?

GIOKOS: The G20 may not have the street cred. But some see advantages to membership in the group.

PETER DRAPER, MANAGING DIRECTOR, TUTWA CONSULTING: We would rather have a seat at the table than not. Talk to the Swiss, for instance. The Swiss

have a huge financial stake. Very important in the European context. They are not on the G20. They want to be in the G20, but they're not.

GIOKOS: As the most industrialized nation on the continent, South Africa is the only African country with a seat at the G20 table. It also chaired

the forum in 2007.

UZO IWEALA, EDITOR-IN-CHIEF, VENTURES AFRICA: Underrepresentation is a crazy thing when I look at it. You've got one country, South Africa in the

G20 when South Africa doesn't even have the largest population in the continent of Africa. I think that Nigeria and South Africa and perhaps

some other African countries should be included in the mix.

GIOKOS: It seems bigger doesn't always mean better. The G20 have never replaced member nations with better performing or bigger economies.

GIOKOS: But it does invite about six non-member countries each year. And in the past Benin, Equatorial Guinea, Malawi, Mauritania, as well as

Ethiopia have received invitations. In 2008, the G20 showed its strength during the global financial crisis, initiating unprecedented coordinated

action to deal with the economic meltdown. Just how much clout does the G20 have today?

GOOLAM BALLIM, CHIEF ECONOMIST, STANDARD BANK: Over the last seven or eight years, in tandem with a period of great instability, the G20, in

attempting to bring some semblance of recovery and stability to the global economy has been very, very relevant.

GIOKOS (on camera): as the global economy experiences tectonic shifts in power in the last 15 years, so did the group of seven nations. It evolved

into the G20 to include emerging economies. Africans now will expect this evolution to continue as the continent known as the last economic front

here is to have a greater voice. Eleni Giokos, CNN Johannesburg.

(END VIDEOTAPE)

QUEST: Now a new study says that a choice of footwear, it could be the big difference whether you get the job at a U.K. bank. Which pair of shoes to

choose? Should they be black or brown? Lace-up? Slip-ons? The advice is next.

(COMMERCIAL BREAK)

[16:50:55] QUEST: What to wear and how to wear it. The next time you head out for a job interview, you might want to wear perhaps one of these

instead of one of these. A report from the British government says U.K. investment banks are discriminating against job seekers on the basis of

education and shoe color. Black shoes, good. Brown shoes, very bad.

And you might also want to think whether you want to wear a suit like this, a fetching sort of light green color with a nice silver-red tie, or do you

want to be like my friend here who is a little boring in a gray suit. Joining via Skype from Edinburgh in Scotland is Grant Harold, an etiquette

expert known as the royal butler. I'm distressed, Grant, distressed is the word, because I'm seeing more and more people wearing brown shoes with

black or dark blue or gray suits. This is the end of society as we know it.

GRANT HAROLD, ETIQUETTE EXPERT: That's what I see as well. On my twitter I often have these discussions about what people should wear. For some

reason the younger generation are confused about what color shoes to wear with their suits during the day. And as I say, obviously black shoes are

what they should be wearing, but somewhere along the line they get a bit confused.

QUEST: Right. I was always taught that old line, never wear brown in town. You know, you save it for the country and you wear black. Is that

still true? Or frankly, at 54, am I a has-been and I really should update myself.

HAROLD: That was the advice I was even given as a youngster. In the 21st century people are wearing brown shoes with dark blue suits, and that's

acceptable. I notice as well there's comments about people that tend not to wear ties. The Duke of Cambridge, the other day was at an event and

didn't have a tie on. Times are changing.

QUEST: But in this day and age, should we -- all right. Let's be -- you're wearing a very splendid Windsor knot there, and a rather nice bit of

tweed on the wall behind you. But should we get terribly concerned if I turn up for an interview, sans tie and brown shoes? Surely it's what's in

my brain and my creativity that's relevant, not whether or not I can match a tie to a pair of shoes.

HAROLD: I think that's -- it's up to your brains that you're able to do that job, that's half of what they're looking for. Presentation is

everything. When I train butlers, I make them wear suits during the training. I remind them that they're an ambassador for the people they're

going to butler for. The way you dress and behave, they're all things people do judge you on. It's important that when you go for an interview,

you dress appropriate for that interview.

QUEST: Look at this sort of splendid piece of footwear. You can't see it, but it's interesting, it's called an ultra-boost, it seems to be a sneaker

with gold, that you might spot at a nightclub. When is it appropriate to wear this distressing piece of footwear?

HAROLD: I'm sure it's lovely, I'm glad I can't see it. You probably should never be seen wearing that kind of footwear. That's my personal

approach to it.

[16:55:00] QUEST: I think I'd agree with you, sir. Do tell me, what is that very nice jacket that you're wearing? What sort of cloth is it? It's

coming over very nicely.

HAROLD: It was actually given to me as a present. I'm in Scotland, I thought it was appropriate to wear that for this interview. And also a bit

of tweed behind me as well.

QUEST: You can never go wrong with a bit of tweed unless you're trying to wear Harris tweed in the middle of summer, in which case you'll boil. Good

to see you.

We really must get the butler in to give us some advice, and maybe one or two of my colleagues some advice as well. We'll have a Profitable Moment

after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's Profitable Moment. I ask you, does it really matter what shoe you wear when it comes to going for an interview? When you think

about these sorts of issues, we get terribly excited whether you wear a light suit or a dark suit. Bearing in mind some of these sneakers can cost

several hundred dollars.

There's one born every moment. The reality is, though, when you do go for an interview, you are judged. You're judged on how you look, how you

behave, and never forget what your grandmother told you. First impressions count. So if you walk in their disheveled and be draggled without a tie

wearing some strange sort of sneaker, it's highly popular you won't get the job, but of course it really doesn't matter if you can't hear me anyway.

That's QUEST MEANS BUSINESS for this Friday night. Whatever you're up to in the hour ahead, I hope it's profitable. See you tomorrow.

END