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Quest Means Business
Theresa May Speaking at Lord Mayor's Banquet; GE Shares Plunge on Stock Dividend Cut; U.K. Businesses "Extremely Concerned" Over Brexit Talks; Amazon Announces "Lord of the Rings: TV Series; Italy Fail to Qualify for 2018 World Cup; India's Tourist Industry on the Rise. Aired 4- 5p ET
Aired November 13, 2017 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00] THERESA MAY, BRITISH PRIME MINISTER: -- the U.K. will remain unconditionally committed to maintaining Europe's security. And the
comprehensive new economic partnership we seek, will underpin our shared commitment to open economies and free societies in the face of those who
seek to undermine them.
Chief among those today of course is Russia. In a recent speech, President Putin said that while the interests of states do not always coincide,
strategic gains cannot be made at the expense of others. When a state fails to observe universal rules of conduct and pursues its interest at any
cost it will provoke resistance and disputes will become unpredictable and dangerous.
I say to President Putin, I agree, but it is Russia's actions which threaten the international order on which we all depend. I want to be
clear about the scale and nature of these actions. Russia's illegal annexation of Crimea was the first time since the second world war that one
sovereign nation has forcibly taken territory from another in Europe.
Since then Russia has fermented conflict in the Donbass. Repeatedly violated the national air space of several European countries and mounted a
sustained campaign of cyber espionage and disruption. This has included meddling in elections and hacking the Danish Ministry of Defense and the
Bundestag among many others. It is seeking to weaponize information. Deploying its state run media organizations to plant fake stories and
Photoshopped images in an attempt to sew discord in the West and undermine our institutions.
So, I have a very simple message for Russia, we know what you are doing, and you will not succeed. Because you underestimate the resilience of our
democracies. The enduring attraction of free and open societies and the commitment of western nations to the alliances that bind us. The U.K. will
do what is necessary to protect ourselves and work with our allies to do likewise. That is why we are driving reform of NATO, so that the vital
alliance is better able to deter and counter hostile Russian activity.
It is why we have stepped up our military economic support to Ukraine. It is why we are strengthening our cybersecurity and looking at how we tighten
our financial regimes to ensure the prophets of corruption cannot flow from Russia into the U.K.
So, we will take the necessary actions to counter Russian activity. But this is not where we want to be and not the relationship with Russia we
want. We do not want to return to the cold war or to be in a state of perpetual confrontation. So, whilst we must beware, we also want to
engage. Which is why in the coming months the foreign secretary will be visiting Moscow, for there is another way. Many of us here looked at post-
Soviet Russia with hope. Because we know that a strong and prosperous Russia which plays by the rules, would be in the interests of the United
Kingdom, Europe and the world. As a permanent member of the UN Security Council, Russia has the reach and the responsibility to play a vital role
in promoting international stability. Russia can and I hope one day will choose this different path.
But for as long as Russia does not, we will act together to protect our interests and the international order on which they depend. But the
international order on which we depend faces other threats, including the challenge of regions where it is the absence of strong states, that allows
instability and conflict to threaten the global order. And nowhere is this clearer than in the Middle East. We see the spillover effects of this
instability in the challenge of mass migration and to humanitarian crises in countries like Yemen.
[16:05:09] And we see it more starkly of all with the threat from Daesh and Islamic terrorism. Britain is at the forefront of international efforts in
the fight against this terrorism. From the battlefields in Syria and Iraq, to tackling the ideologues who fuel the hatred of Islamic extremism, and we
will defeat it.
But the conflicts we see in the Middle East are rooted in a complex mix economics, demographics, history and sectarian tension. In the past we
have sought to remake countries or even entire regions at great cost to their people and ultimately to our own willingness to intervene when
necessary. Of course, we must never be paralyzed by the myths that armed intervention is due to fail and the U.K. is not and will not be afraid to
deploy its hard power where necessary.
Indeed, this is happening around the world as I speak, from our world leading covert agencies to over 1,000 troops deployed in Iraq and
Afghanistan, to our Royal Air Force operating in the skies over Syria and Iraq and our Royal Navy patrolling the waters of the Gulf.
But as we look to the future, it is the strength and stability of our partners that will define the trajectory of the region. So, if we are to
achieve enduring stability in the Middle East, let's make an offer which supports both the long-term security and prosperity of our key partners and
encourages them to be champions of the global order. As we are doing in countries from Saudi Arabia to Jordan, we will provide support to help and
defend and protect their borders and their cities from external aggression, from terrorists to Iranian backed proxies.
We will step up our efforts together with our European and American allies to help them not just contain but solve conflicts in the region. From
seeking political solutions in Yemen and Libya, to bolstering a united Iraq, and working towards a two state solution in the Middle East peace
process.
As part of this, why we will stand firm in our support for the Iran nuclear deal, we are also determined to counter destabilizing Iranian actions in
the region and their ballistic missile proliferation, working with the United States, France and Germany in particular. And drawing on the full
capability of government and private sector, we make a long-term commitment to work with our partners to as they seek to reform their own economies.
From Jordan as it deals with the challenges of refugees from Syria and which I will be visiting again later this month.
To countries across the Gulf, undertaking social and economic transformation, for these reforms can provide far reaching opportunities
for the people of the region and the wider world. As part of these efforts, we have champion steps towards greater rights and openness.
Insistent on the direction of travel. Working with our partners in the region and recognizing that each country must find its own path. And this
credible and coherent offer of support and partnership is a matter of urgency.
As we see from the events of the last few weeks, from Lebanon to the GCC dispute. Our partners see the threats they face as immediate and are
straining for the means to tackle them. So, it is in all of our interests to get this right. To bring long-term stability, long-sought stability to
the Middle East. Ensure these growing economies can play their full role in the global system and re-enforce a rules-based international order.
And at the same time as dealing with threats to the global order from state and regional instability, we must also step up to the challenge of ensuring
that free markets and open economies deliver fair and equitable growth for all. As I argued at this banquet last year, free market economies have
delivered unprecedented levels of wealth and opportunity. But they are losing popular support because they are leaving far too many people behind.
The answer cannot be to turn our backs on the free market economy, which with the right rules and behaviors, is the greatest agent of collective
human progress ever created. For it is when countries make the transition from closed restricted, centrally planned economies to open free market
policies that we see live expectancy rise and infant mortality fall. Incomes rise and poverty fall, access to education rise, and illiteracy
fall.
[16:10:00] Indeed it is the open free market economies which are the only sustainable means of increasing the living standards of everyone in a
country. So, our challenge is to ensure that is exactly what they do. That is why here in Britain, we are building a modern industrial strategy
that will help to bring the benefits of our trade to every part of our country. It's why we will act as a voice for free trade at the WTO. And
also continue our efforts, including as I set out this year at the G 20, to reform the international trading system. To ensure that trade is not just
free, but fair. Fair between countries and fair for the poorest countries. But as we all know, global economic growth is increasingly being driven by
emerging economies and power houses in the east.
And Africa's population growth means its significant will also only increase in the decades ahead. So, the West cannot right the rules of this
century on its own. It is our partnerships with the countries of Asia and Africa in particular that will define the course the world takes. That is
why I have asked the new international development secretary to build on the work of her predecessor, by making one of her first priorities a review
of how the whole of government, together with the private sector can best support African aspirations for trade and growth.
It is why we will use our relationships with the commonwealth and the summit here next year to work with partners in Africa, Asia and beyond, in
building consensus and taking practical steps towards a global economy that works for everyone. And it is why I'm also clear that we will continue to
increase our investment in Asia. I am committed to maintaining the golden era of our relationship with China. Not just as a vital trading partner,
but also as a fellow permanent member of the Security Council whose decisions together with ours will shape the world around us.
And I'm committed to deepening our partnerships with countries across Asia. Where I believe that Britain's global offer can have a hugely beneficial
impact in ensuring that the region's potential is fully realized. That includes tackling the problems in the region today, such as North Korea.
Where we have played a leading role in securing sanctions in response to the regime's outrageous proliferation of nuclear weapons.
And it includes continuing to step up our efforts to respond to the desperate plight of Rohingya. Brought home to us again on our TV screen so
graphically today with heartbreaking images of young children emaciated and pleading for help. This is a major humanitarian crisis, which looks like
ethnic cleansing. And it is something for which the Burmese authorities, and especially the military, must take full responsibility.
The U.K. is already the largest donor in response to this crisis and we will continue to play a leading role in bringing the international
community together, working through the U.N. And with regional partners to do everything possible to stop this appalling and inhuman destruction of
the Rohingya people.
And beyond the immediate challenges of today, we must also invest now in longer-term security partnerships in Asia, such as those I have launched
with Japan and India over the last year. And which we will look to develop further with countries across the region.
Lord Mayor, as we look to the future, one of the biggest aspects of a global Britain will be our soft power and crucially that includes British
business. Where open markets thrive, and the rule of law holds sway, British companies prosper. And they take in their DNA a way of doing
business that brings not only commercial but wider benefits of good governance, respect for the law, corporate and social responsibility. So,
as a global Britain makes its offer to the world, we are also offering the certainty and the competence of the high standards you set. The frame work
of rules you follow. The values you live by and the ethos and culture you create.
You are the bearers of a certain idea of economic order upon which the last century of growth has been based. As I believe the next will be based.
So, you have a vital role to play. To honor the great tradition of your livery companies, by meeting that profound responsibility, not just to do
business, but to advance the values, rules and standards on which good business and global security and prosperity depend. To champion the
deepest trade links and open markets in Europe and support a new economic partnership with the EU that will be in all of our interests to ensure
western strengths.
[16:15:00] To seek out and secure new markets from the Gulf to East Asia. Driving growth and productivity at home. Embodying British dynamism and
expertise abroad. And giving proof to our firmly held faith in open markets and fair competition as the best route to lasting stability,
security and prosperity. And I am confident that you can do this.
For while our partners around the world want our support as a global power, they want something else too. They want what you bring. They want
expertise. They want reliable partners for the long-term. They want the legal services, the accountancy services and the finance in which this
great city of London leads the world. Because your engagement and your investments are the ultimate kite mark of confidence, a signal to the world
that a country is a credible partner an open for business.
So, Lord Mayor, these are challenging times, but I am confident that a global Britain has the ability and indeed the responsibility to rise to the
moment, to work together to secure the best possible Brexit deal. A deal that is not just good for Britain and good for the EU, but also strengthens
the liberal values we hold dear. And to work together to adapt and defend the rules based order on which our security and prosperity depends. For
this is fundamental to our success, to that of our partners, and that of the world. So, let us step up to the task, and let us do so together with
a confidence and conviction of a truly global Britain.
BIANNA GOLOGRYGA, CNN HOST: And you've been listening to the British Prime Minister speaking at the Lord Mayor's banquet. A wide-ranging topics that
she covered there. She's taken the opportunity, however, to focus on the threat of Russia. Warning that Moscow is a global threat that is trying to
turn information into a weapon. Diana Magnay is in London with more. And as I mentioned, Diana, wide ranging, talking about the Middle East, talking
about Brexit, talking about a global Britain. What does that mean? Because she kept going back to that phrase, global Britain.
DIANA MAGNAY, CNN CORRESPONDENT: Well she certainly has grand aspirations four what global Britain post Brexit means and that is that it will be
upholding the liberal rules based order that it will be a bastion of the values that make Britain and British companies great. And that it will be
continuing to make its imprint in preserving peace in the Middle East, or at least in trying to maintain it. That it will be attempting to reassure
European and trans-Atlantic allies that its commitment to collective security in the form of NATO, these kinds of things.
I mean it did feel to me as though there was an elephant in the room in terms of being more specific about Brexit. If you think about who her
audience is, she's talking to the Lord Mayor of London who is the representative of the city of London around the world. And therefore, to
an audience who is desperate to hear from her, that for example, she will give them a Brexit deal that they can accommodate, that will be good for
business, that they will have a transitional arrangement, and if you think of frankly, the mess that she is in domestically, politically and in terms
of Brexit, this does sound very, very highfalutin, to be bombasting Russia. To be talking about Britain's grand role on the world stage Post Brexit,
when there's a lot of leg work to be put in to get there --Bianna.
GOLOGRYGA: When she can't even seem to keep her own cabinet together. Of course, this coincides with meeting that she had today with British
business leaders. London of course, voting to remain in the EU. Let me ask you one more question though about something that seemed pointed
directly at President Trump. At a time when the president is trying to bring the United States off of the global playing field, at least as a
leader in that respect. She said, the role for the U.S. as shaping a global order is as important now as it has ever been. That seem directed
at Donald Trump.
[16:20:00] MAGNAY: Absolutely, I mean she seemed to have clear messages for important world leaders, Donald Trump and Vladimir Putin, the both of
them. I think that Britain still and Teresa May believes that there is an important trans-Atlantic relationship that Britain and the U.S. have. And
she clearly feels that she has a sort of moral duty to enforce upon the U.S. President, you know, his place in these international rules based
order which she feels Britain has such an important role in trying to maintain.
GOLOGRYGA: That's right, Diana. Her message to Vladimir Putin, we quote, we know what you our doing and you will not succeed. You underestimate the
West and democracy. Powerful words from the Prime Minister. Diana, thanks so much for joining us. We will have more on Teresa May's political
struggles later in the program. For now, will be back with more QUEST MEANS BUSINESS in just a moment.
(COMMERCIAL BREAK)
GOLOGRYGA: Tonight, a humiliating moment for one of America's corporate titans. General Electric said it will cut its iconic dividend in half and
sell off its most recognizable businesses. The railroad unit is up for sale, and so is the light bulb business. That's a drastic move for GE
which traces its history back to the inventor of the lightbulb, Thomas Edison himself. It highlights just how dire GE's cash crunch has become.
And how little confidence investors have in the company. GE's stock was already the Dow's worst performer of the year. Now news of the dividend
cut could push it down another 7 percent as it did today actually.
It's only the second cut to the dividend since the Great Depression, and it's a move with huge ramifications. The stock that's the most widely held
in portfolios large and small. GE's CEO says it's time to reinvent the company. It's the latest in a long line of transformations at GE and Clare
Sebastian is following it all. Hey, Clare.
CLARE SEBASTIAN, CNNMONEY CORRESPONDENT: Yes, Bianna, this is a company that's been around for 125 years and today the CEO, he says the company is
looking for its soul again. It's asking real questions about what it's actually for. But to understand what that means, you have to understand
its transformation so far. Basically, the company that began with Thomas Edison's light bulb has spent the last century or the first century, you
can say, of its life switching on more lightbulbs.
It's expanding into new markets and new businesses. Particularly in the 80s and 90s under legendary CEO, Jack Welsh. He moved into real estate.
He moved into media. And he even moved into banking with GE Capital. But by the time Jeffrey Immelt, his successor took over in 2001, it was four
days before 9/11. Then the financial crisis hit, and he faced a new set of challenges. He had to employ the off switch. He really had to shore up
the company's cash flow. He ended up selling the real estate holdings, the media holdings. Selling off the appliances division in 2016. And winding
down the lossmaking banking division GE Capital.
[16:25:00] But it wasn't done yet, Ge stock was still one of the worst performing on the Dow by August when Jeffrey Immelt step down. And John
Flannery, is successor, is also having to employ his own off switch. Today telling investors that industrial solutions is going. That's already
actually been sold. Transportation, the locomotive section that's part of the iconic core of the business dating back a century, and of course, the
light bulbs themselves. Will that be enough? This is only 20 billion worth. Altogether these three -- this is a company worth $365 billion in
assets. So, this is clearly a major transformation. A smaller, a humbler General Electric, but I think there are real questions tonight by investors
about whether this is going to be enough -- Bianna.
GOLOGRYGA: Yes, a real game changer for the company, employing some 300,000 people around the country. Clare, thank you so much.
Ge plans to focus now on three key areas, aviation, power and healthcare. Brian Langenberg says it will take five years to turn the company around.
He's the founder of Langenberg and Company, and he's joining me now from Chicago. Brian, great to have you on. So, five years, is this the first
step in the right direction for the company??
BRIAN LANGENBERG, FOUNDER, LANGENBERG AND COMPANY: Well, let's step back, I want to put that five years comment in context. It is not going to take
you five years to see improvement. That's why we upgraded the stock this morning to a buy from a hold after having a hold on the company for over 2
1/2 years. We think this is a cathartic moment. OK. This year we've seen Jeff Immelt, the CEO leave. We saw his CFO, Jeff Ornstein go from CFO to
vice chairman to out the door. We saw the head of the power business leave. And it's actually the big downturn in the power business where
they've had some projects and contracts blow up that have led to this.
Think of this as a reset. When you look at the normalized earnings power of the assets they have, the stock is undervalued by, well, I would have
said 20 percent this morning, let's call it closer to 25 percent today. I think fair value for the assets is 24 percent to 25 percent. I think
you'll see improvement in a couple of years. But to really change the culture of the company to really get at it, does take a few years. It's
going to be gradual, but I think the direction here is going to be in the right direction finally.
GOLOGRYGA: Change in the top, change in leadership. As far as strategy though, which is obviously what investors and shareholders want to see, is
the company by selling a lot of these assets and regrouping, is this the right strategy for the company to remain competitive in the marketplace
going forward?
LANGENBERG: Yes. Well, the divestitures are going to help them focus on what they have. Even before today, power, oil and gas, aviation,
healthcare were really the bulk of the prophet of the business. They just executed poorly in power and they bought oil and gas at the wrong time.
The aviation, health care business is actually pretty good. So, in selling these businesses, it's really addition by subtraction, that's going to
allow them to focus on three core areas and that's important.
GOLOGRYGA: Brian Langenberg, we're going to have do leave it there, there are a lot of people wondering if this is an indictment on his predecessor,
Jeffery Immelt. Of course, The news coming out about his having two private jets and that it as well as his bonus package. A lot of people
questioning some of the business and decision managements that he made while he was in charge. Thank you so much for joining us.
LANGENBERG: Pleasure.
GOLOGRYGA: Every 66 seconds, that's often a new case of Alzheimer's disease is diagnosed. Now Bill Gates wants to help find a solution to
that. And he supplies a lot of money to do just that.
[16:30:00] (COMMERCIAL BREAK)
GOLOGRYGA: Hello, I'm Bianna Gologryga. Coming up the next half hour of QUEST MEANS BUSINESS. Bill gates gives us an exclusive TV interview on his
mission to fight Alzheimer's. And lawsuits, private plain and personal feuds. Renewing the NFL's commissioners contract is almost as exciting as
the action on the field. But first these are the top news headlines we're following for you this hour.
Authorities in Iran and Iraq are racing to pull survivors from collapsed buildings after Sunday's powerful earthquake. They say at least 452 people
were killed and more than 7000 were injured. The vast majority of the victims are in Iran. It's the deadliest earthquake worldwide this year.
Iran has declared three days of morning.
Two hours ago, a second woman came forward accusing a U.S. Republican Senate candidate of sexually assaulting her when she was a teenager. In a
statement before the news conference, Roy Moore called the allegations, quote, a witch hunt. However, the Republican Senate majority leader says,
he should step aside. Moore's wife accuses Democrats of stopping at nothing to end her husband's campaign.
In France President Emmanuelle Macron attended ceremonies making two years since the deadly terror attacks in Paris. 130 people were killed by ISIS
extremists during those attacks. Mr. Macron along with his wife also met with and consoled relatives and survivors.
British Foreign Minister, Boris Johnson, has apologized for his remarks about a British/Iranian mother jailed in Iran. Johnson told the British
Parliament said he was sorry for suggesting Nazanin Zaghari-Ratcliffe was in Iran to teach journalists. She was jailed in Tehran in 2016 while
visiting family on holiday. Some believe Johnson's statements could worsen her situation.
Musician Bob Geldof has handed back his 2006 Freedom of the City of Dublin award. The Irish singer and activists said he can't share an honor like
that with Myanmar leader Aung San Suu Kyi who also was given that award in 1999. Geldof is protesting Suu Kyi's handling of the Rohingya crisis. He
went on to call Suu Kyi as killer, saying he can't be on the same list at what the U.N. describes as genocide.
Earlier this hour, you heard Theresa May hailing British businesses and their potential to project Britain's power across the world. The British
Prime Minister began her day by meeting business groups who now say they're extremely concerned at the lack of progress on Brexit talks. The
Confederation of British industry said quote, While businesses welcomed the Prime Minister's Florence speech, we now need to move beyond warm words if
jobs, investments and living standards are to be protected.
Sterling is down around half a percent against the U.S. dollar as the Prime Minister faces reports of a rebellion within her own party. The Institute
of Directors also met with the Prime Minister and I asked its director general what is the most crucial thing it wanted to tell her?
(BEGIN VIDEOTAPE)
STEPHEN MARTIN, DIRECTOR GENERAL, INSTITUTE OF DIRECTORS: The mere message what was coming across from all the groups and it was very loud and very
clear, was to get a transition agreement and to be able to move on to the trade talks as soon as possible.
GOLOGRYGA: And as far as that transition deal, maintaining status quo appears to be the target that most of these CEOs are aiming for? I'm
assuming yourself included.
MARTIN: Yes, there was common consensus to maintain as close to the status quo as possible during that transition period. That's not to say that will
be the case directly afterwards, but certainly during the transition there was a common agreement that should be what we aim to achieve.
[16:35:00] GOLOGRYGA: How damaging would a no deal mean and how damaging would it be for trade in general?
MARTIN: Well, a concern of business leaders all across Europe is that they are working very closely with the U.K. at present. It's very clear what
the trading relationships are. They understand the rules of working together. The custom barriers are not there. So, having no deal in place
would mean that there would be barriers potentially put up in terms of customs, and also in terms of regulatory requirements. And that would be
very damaging, members think, because it would be so uncertain that it would create barriers to business.
GOLOGRYGA: And of course, this comes just one month before that decisive December European Council. Are businesses concerned, yours in particular,
with the slow pace of negotiations?
MARTIN: Well, the concern has been that we would really like to see the pace of negotiations stepped up. There has been a lot discussed but we're
seeing not a lot in the way of progress. So, December, the council meeting is very important to see if we can get agreement to move on to the phase 2.
The negotiations which are really important ones, to discuss trade, and also to get a transition to get us to those negotiations themselves.
GOLOGRYGA: So, you're pressing from the business community your perspectives and your concerns to the Prime Minister. How receptive was
she?
MARTIN: To be fair to the Prime Minister, she was getting a lot of common themes coming out in our meeting today. She listened very intently. She
was clearly getting the messages loud and clear from the business leaders. And the Brexit secretary was there as well, so he was listening and
responding as well. So, I would say that certainly listening, reflective and the concerns of business leaders all across Europe were put directly to
her.
GOLOGRYGA: Final question, are you more optimistic or pessimistic coming out of the meeting with the Prime Minister today?
MARTIN: I think from my point coming out of the meeting today, it was positive in that she very receptive and listened what the business leaders
had. However, we would like to see now that action coming forward and progress, real progress made at the December council meeting.
(END VIDEOTAPE)
GOLOGRYGA: Stephen Martin saying, action mean more than words at this point in the negotiations. Our thanks to Stephen.
I believe there's a solution two Alzheimer's. That's what Bill Gates has told CNN. With more than 50 million sufferers worldwide, the number of
people living with dementia is expected to double every 20 years. The moist common cause is Alzheimer's disease. Yet there is no treatment or
cure. Bill Gates is investing $50 million, of his own money, into research on the disease. In his only TV interview on the subject, he spoke with our
chief medical correspondent, Dr. Sanjay Gupta.
(BEGIN VIDEOTAPE)
SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Every 66 seconds, someone in the United States develops dementia, the most common
form, Alzheimer's. More than 5 million Americans are living with the disease right now and that comes to a cost of more than $250 billion a year
in term of care. By 2050, that number is expected to explode to as many as 16 million Americans with Alzheimer's. And care, that's expected to reach
$1 trillion.
BILL GATES, CO-FOUNDER, MICROSOFT: We don't really have anything that stops Alzheimer's, and so the growing burden is pretty unbelievable.
GUPTA (voice-over): Well-known for his philanthropy in the world of infectious disease, Bill Gates, for the first time, is investing $50
million of his own dollars into a non-communicable disease. He will support the Dementia Discovery Fund, a public private collaboration that
helps new avenues of research, ideas that may have a hard time otherwise getting funded.
(on camera): Should the word cure be used with Alzheimer's?
GATES: It's probably setting a high bar. At first, we probably should say treatment, and any type of treatment would be a huge advance, you know,
from where we are today. So yes, I believe there's a solution.
GUPTA (voice-over): Deep inside the brain, billions of cells work to create memories by sending messages through a neural highway, electrical
signals passing through junctions called synapses. Where chemicals called neuro transmitters leap across the gap carrying the message to more and
more neurons. But in Alzheimer's, these pathways become blocked by unusual proteins called amyloid and tau that clump and tangle, affecting memory,
personality and eventually basic functions of the brain.
[16:40:00] GATES: People looking at the immune system of the brain, the idea that your cells just run out of energy, that the energy engine get
broken down so a lot of great science going on.
GUPTA: Today, Alzheimer's is the sixth leading cause of death in the United States. It kills more people than breast cancer and prostate cancer
combined. Since 2000, while the number of people who have died from heart disease has dropped by 14 percent, the number of people who died from
Alzheimer's has increased by 89 percent.
GUPTA (on camera): Was there a personal connection with Alzheimer's for you?
GATES: Yes. My families including several of the men in my family have had this disease and so, you know, I've seen how tough it is.
GUPTA: Do you worry about this for yourself. Alzheimer's disease?
GATES: Anything that where my mind would deteriorate I have to say I would be disappointed that, you know, thinking about complex problems and I hope
I can live a long time without those limitations.
GUPTA: Dr. Sanjay Gupta, CNN, reporting.
(END OF VIDEOTAPE)
GOLOGRYGA: A devastating disease affecting millions of families around the world including Bill Gates, we just heard. Our thanks to him and Sanjay.
Well, if you are a "Lord of the Rings" fan, do we have news for you. It involves one of the biggest names in tech, no spoilers, keep it here, we'll
be back and explain more after the break.
(COMMERCIAL BREAK)
GOLOGRYGA: Well Amazon is set to deliver something very big to "Lord of the Rings" fans. It's making a multi-season TV series based on the work of
J.R.R. Tolkien. Amazon has snatched the global television rights to the fantasy novel. CNN money media reporter Frank Pallotta is here with more.
Frank, you said you were looking for a ring to bring to the set as a prop.
FRANK PALLOTTA, CNNMONEY MEDIA REPORTER: Yes, I kept asking people --
GOLOGRYGA: Nobody would give you their wedding ring.
PALLOTTA: No one would give me their wedding ring. And you know, rightfully so, I'd probable --
GOLOGRYGA: What does that say about trust here at CNN?
PALLOTTA: There's no trust at CNN anymore.
GOLOGRYGA: But there is trust, obviously, in the "Lord of The Rings" franchise from Amazon's perspective. How big of a move is this on their
part?
PALLOTTA: This is a really, really big move. This is one of the biggest brands on the planet. And I was really thinking of how important this is
internationally. The movie series, for example, each of the movies that came out, 64 percent of their grosses were international grosses. So, if
you're Amazon and you're trying to build a brand, not just in America, but worldwide. "Lord of the Rings" Is a great way to do that.
GOLOGRYGA: You're thinking about Asia in particular may be.
PALLOTTA: I'm thinking about the whole wide world. Everybody loves "Lord of the Rings."
GOLOGRYGA: And this of course, comes on the heels of Disney announcing that it's going to be releasing a new franchise, a news series of "Star
Wars." My stepson is already lining up what he's doing that night. I think it's next month when we are going to see the movie come out. What
does this say about these big names going back into that wheeled house for the products that work, but there the products we know. They're not
original. This will be original, but it's based on the story everyone knows.
[16:45:00] PALLOTTA: What's really interesting about Amazon, is that Jeff Bezos, who runs Amazon, was reported saying I want my "Game of Thrones. "
I want a "Game of Thrones." And this is the original "Game of thrones," a lot of what George R. Martin created was based on "Lord of the Rings. "
What it's really about is going back to these old series that not only your children and my children someday will go through, buy it goes way, way
back. So, it's built this huge brand. It's kind of foolproof. Like, people are going to sign up for Amazon to watch "Lord of the Rings" because
they know that's a great brand that they grew up and that they love.
GOLOGRYGA: And It's going to be original content?
PALLOTTA: It's going to be a before the "Lord of the Rings" but after the "Hobbit." So, it's kind of a prequel. It's somewhere in there. There'll
probably be a bunch of troll singing songs or something.
GOLOGRYGA: Who is the target audience here?
PALLOTTA: Who isn't the target audience. Seriously, I don't mind joking when I say that. I know kids who love "Lord of the Rings," I know people
my age, I'm 30, that love "Lord of the Rings." And I know like my dad help bring me up on "Lord of the Rings," read stories to us about "Lord of the
Rings" growing up. It's multigenerational and that's the real hope for Amazon.
GOLOGRYGA: So, there no controversy in this move. You think this is a homerun regardless?
PALLOTTA: I don't know if it's a home run, because I don't know exactly where they can go from the film series. The film series by Peter Jackson
made over $6 billion. It was beloved. It's perfect for a lot of the fans. I don't know where else they can really go and plus the "Hobbit" came out
after that. That was another three movies. So, it's kind of like, is there such a thing as "Lord of the Rings" quote overkill. Have we had too
much Gandalf?
It's so interesting though when you talk about the global audience now from a Netflix, from an Amazon perspective. From all of the big distributors
perspectives, they're not just thinking about domestic eyeballs, they're going for international. And when you travel, you hear people say they
love "Lord of the Rings." They love "Game of Thrones," they love "House of Cards." So, they're watching a lot of the products filmed in the U.S,
exported from the U.S, but meant for a global platform.
PALLOTTA: Especially when you're talking about fantasy series. They don't take place like "Lord of the Rings," it's not like they're --
GOLOGRYGA: It could be anywhere.
PALLOTTA: Yes, they're not walking from New York to Mount Dune in Las Vegas. Like, it takes place in middle earth. It talks to everyone. There
is no language that it can't break through. There is no translation needed. Everyone can watch "Lord of the Rings" no matter where you are in
the world and enjoy it as much as everybody else can.
GOLOGRYGA: Sounds like you're going to be really excited about that. And I would've given you my ring as a loaner.
PALLOTTA: It's OK. It doesn't work with an engagement ring, you need a band.
That's true. I tried. Frank, thanks for joining us.
PALLOTTA: Thank you.
GOLOGRYGA: Appreciate it.
We have some breaking news to bring you from the world of sports. Italy will not play in next year's World Cup after failing to beat Sweden in a
playoff. Sweden managing to hang on at the second leg of their tie. Now that means Italy will miss out on the World Cup for the first time in
decades. I guess they can sit on the sidelines with the U.S. men's team as well.
Meantime coming up, more football next, running a world-famous organization as we know can be stressful, especially when it's facing political pressure
like the NFL. So, the league's commissioner might feel entitled to a few perks when negotiating a new contract. We'll give you some of those
details coming up.
[16:50:00] (COMMERCIAL BREAK)
GOLOGRYGA: The NFL's commissioner, Roger Goodell it is expected to get a new contract with the league shortly, according to a source. If he does,
it would wrap up one of the most controversial negotiations the league has ever seen. According to ESPN, Roger Goodell is asking for nearly $ 50
million a year and a private jet for the rest of his life as part of the talks. Although two NFL sources are disputing that. Still one team owner
is so unhappy with Goodell, that he's threatening to sue the league to stop him getting a new contract. World sports Don Riddell, is at the CNN Center
with more. Great to have you on, Don. Usually we talk about contract negotiations when we're referring to players, not commissioners of the
league, how controversial in retrospect is this contract compared to his predecessors?
DON RIDDELL, CNN WORLD SPORT: This one has become very, very controversial. And is the Dallas Cowboys, the team owner, Jerry Jones
who's really the most outspoken about it. We often talk in my business about football or soccer managers and how difficult it is to manage a bunch
of millionaire egos in the locker room. Roger Goodell has to do something arguably even harder. He's dealing with a bunch of billionaire owners in
trying to keep them all in line.
Now up until this point they've all been making a lot of money together. And while Roger Goodell hasn't always necessarily made the most popular
decisions with some of the team owners, like suspending some of their more popular players. They buy in large let it go. But TV ratings are down for
the second consecutive year in the NFL. We've had Donald Trump weighing in to the whole argument about whether the players should be standing or
kneeling for the national anthem. In the owners don't like that.
And in the case of Jerry Jones, he's now really gotten the hot because his star running back Ezekiel Elliot has been suspended for six games as a
result of the implementation of the league's domestic violence policy. And Jerry Jones is very unhappy with the fact that Roger Goodell not only wants
to stay, but wants to ask for a significant raise for his services. It's going to be very, very interesting to see if Jones can get some of the
other owners to get some of the other owners to come on to his side, there are 32 teams. And reportedly he has about a handful of owners who share
his point of view, if more can get on board, then things will get very, very interesting.
GOLOGRYGA: No one expected a commissioner to be earning minimum wage, but when you see some of these figures, including a private plane for life, one
does have to wonder about tone deafness in the least. But let me turn to the other breaking headline that we reported just earlier. Italy, being
knocked out of the World Cup. How big of a blow is that for Italy?
RIDDELL: Well, it's an enormous blow. And it's a huge shock. I mean, nobody has a divine right in the world of football to play in the World
Cup. Just as the United States. Just ask the Netherlands or Chili about that. But Italy, I mean they have qualified for every tournament since
1962. You have got to go back to 1958 to find a year when they haven't played. They're one of the most popular football countries. They're known
as the Gli Azzurri. Even that name is just a cool football name.
They've won it four times. They're one of the most successful countries in the history of the World Cup. And it is just astonishing to think that
they won't be in the World Cup next year. But their qualification campaign was very disappointing. Remember, they lost their manager Antonio Conte,
who left for Chelsea and immediately won the Premier League with them. They labored through their qualification group. They had Spain in their
group, which is always going to be difficult for them. They finished second to them.
And then they were unlucky, I guess, in that they drew Sweden as one of the teams, or the team they had to meet in the playoffs. And Sweden are a good
team. And over two legs just edited by one goal to a nail one aggregate. Italy had so much of the ball tonight. They couldn't do anything with it.
But this will be bitterly disappointing and absolutely heartbreaking for their fans who still would have just assumed that somehow Italy would find
a way to get there. But they won't be in Russia next summer.
GOLOGRYGA: Yes, they can find consolation, as you mentioned, with the U.S. men's team's as well. People still recovering from that devastating loss.
Great to have you on. Thank you so much.
Well, India says the country is expected more than 16 million foreign arrivals this year alone. That figure includes NRI, nonresident Indians.
Richard spoke to the countries tourism minister at the World Travel Market in London. He asked her if the country will be able to draw even more
visitors to India.
(BEGIN VIDEOTAPE)
RASHMI VERMA, INDIAN TOURISM MINISTER: Absolutely, I fully agree with you, looking at the huge potential of India. I think 16 million is nothing.
And we are targeting to get at least 40 million in the next five years and we are very hopeful that we'll get there.
RICHARD QUEST, HOST OF QUEST MEANS BUSINESS: 40 million in the next five years?
VERMA: We our showing a very good steady growth of more than 15 percent of international tourist's arrivals this year. And if the strength continues
in the next five years we are sure to hit 40 million.
[16:55:00] QUEST: If you hit that, even if you get close to that growth, can you handle it? I mean, airports, hotels, infrastructure, can you cope
with that?
VERMA: Well, yes, in fact, the capacities at the airports are being enhanced and most of the airports new terminals are coming up, even in
Delhi. We are opening a new terminal. And when we talk about 40 million, we are including the NRI population also. We are targeting the NRI's also
to come to India, within that 40 million. And many of them, they are not looking so much for the accommodation, hotels, et cetera, they have
relatives to fall back upon. But they do like to come to India, more as a tourist now, not just visiting their relatives, you know. So, 40 million
is for foreign tourists and our NRIs taken together.
QUEST: It's going to be a challenge. To do that and to do it the key buzz word, sustainably, isn't it?
VERMA: Yes, in fact, sustainable tourism is that we're looking at, because it's not enough to get numbers. If you get numbers and you spoil a
destination, then it's ruined forever. So, we are giving a lot of focus on sustainable tourism. We are doing studies about carrying capacities on
various tourist destinations and we're very hopeful that with the number of initiatives we our taking for promoting responsible tourism by way of
workshops and creating awareness will go a long way.
QUEST: How far are you along in this idea of shifting the tourists around? So, some go to the beaches of the South, some go to Mumbai, some go to the
palaces, some go on railway trips, so that you don't get this all at the main centers?
VERMA: Yes, so we are trying to open up new destinations and we are partnering with many of the states who have these products, but need a
little more aggressive marketing and need a little more creation of infrastructure in and around these tourist sites. And we are very hopeful
that more and more states are becoming partners in tourism promotion. Will be able to open more tourist sites to the world.
(END VIDEOTAPE)
GOLOGRYGA: India open its doors for visitors. Our thanks for that interview. And if you've missed parts of today's program or if just want
to take us on the road with you. You can now download our show as a podcast every night. We all love podcasts. It's available from all the
main providers or you can listen at CNN.com/podcast.
And that's QUEST means business for tonight. I'm Bianna Gologryga, we'll see you again next time.
END
