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Hala Gorani Tonight
Oil Prices Hit New Low, Drag Markets Sharply Down; At Least 19 Killed In Pakistan University Attack; Rezaian Thanks Swiss Foreign Ministry Air Force; Some Asylum Seekers Feel Singled Out By Red Doors; Discussion the Zika Virus; Palin Campaigns with Trump. Aired 3-4p ET
Aired January 20, 2016 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[15:00:33] HALA GORANI, CNN INTERNATIONAL ANCHOR: Hello, everyone. I'm Hala Gorani. We are live from CNN London. This is THE WORLD RIGHT NOW.
And we begin once again this hour with another massive sell-off on Wall Street where the numbers and the hopes for a quick rebound are sinking
fast.
We are less than an hour way from close. Here is what is going on. Big board up for you, the Dow Jones Industrial Average is losing 360 points
pretty much at 15,657.
Now this is better than where it was just a few hours ago. The Dow was tanking as much as 500 points. Let's take a look at one of the root
problems. Brent crude is down as well hovering around $27 a barrel.
Light crude, often used benchmark in the United States is now well below $27, up more than 6 percent. The value of oil is a problem. It seems to
have investors asking if there are deeper issues with the global economy and less demand from economies like China, for instance.
It could explain the drop in oil, which explains why investors are worried. Richard Quest is in Davos where the world's economic health is on many
people's minds and Alison Kosik is at the New York Stock Exchange.
Alison, let's start with the action on Wall Street. First off, what are traders telling you about what is going on today? Because we are not
seeing a rebound. We've seen several sessions of heavy losses here.
ALISON KOSIK, CNN MONEY CORRESPONDENT: Yes, we're seeing the focus really remaining on oil and oil prices, Hala. You know, we saw oil today settle
below $27 a barrel. These are levels we haven't seen in more than a decade.
And the focus is on oil because of the concern about what it's saying about other economies around the world. Analysts are saying that these low oil
prices are an indicator of how economies are doing and that they are slowing down.
So that begs the question and it's the big worry on Wall Street is how long can the U.S., which is the strongest of the world economy? How long can
the U.S. sustain itself in that kind of environment -- Hala.
GORANI: And in Davos, Richard, I know you have your #worrywall where you ask all the heads of companies CEOs, ministers of finance, the head of
international monitor organizations, what are they saying their biggest concern is as we watch these markets tumble?
RICHARD QUEST, CNN ANCHOR, "QUEST MEANS BUSINESS": I just want to, Hala, point out the oil prices that you're seeing on the screen now where we are
now showing correctly that the oil price both West Texas and Brent crude both fell very sharply.
West Texas interestingly because of the nature of the market, the distance of travel, it's not so much of a bend mark but West Texas off 6 percent and
Brent Crude off 3 percent. It's a larger mark.
Hala, this is getting to the point where damage is being done and nobody really knows the full extent. It is easy to just dismiss a couple of days
of volatility in the market as being froth off the top.
But when you've now got the Nikkei, the FTSE, the DAX, several other European markets in bear market territory, fall of 20 percent, you've got
the U.S. markets flirting within that same area. You'll be on the correction.
And one other point, we are now in that part of the day, that last hour of trade where we get transparency on the mismatch between buy and sell.
So we'll find out in the next 20 minutes or so if there is a wall of selling waiting to take this market further down towards the close.
GORANI: And Alison, how much, by the way, just out of curiosity, how much market cap has the Dow lost since the beginning of the year?
[15:05:03]Because it has to be in the billions and billions of dollars. Are traders concerned really that this isn't just a blip and maybe sort of
readjustment, but truly perhaps we are entering their market territory here?
KOSIK: I would beg to say it is more than a trillion dollars because of where the Dow began the year. I mean, you are looking at the Dow down just
for this year and we are just three weeks in.
The Dow is down 10 percent year-to-date. S&P 500 down almost 10 percent. These are huge losses. You think about even late last year, analyst were
already predicting this wasn't going to be a banner year for returns when it comes to the S&P 500.
But I don't think anyone predicted the hole that would be dug so deeply so early in the year -- Hala.
GORANI: Richard, when you speak with these big corporate leaders or fund managers in charge of moving around billions of dollars, do they feel that
this correction is an accurate reflection of the economic problems the world is facing right now or is it being overdone?
QUEST: Well, if you accept the markets like pendulum always over compensate one side then to the other, that then it is overdone clearly.
But is there sufficient unease in the global economy to merit the correction.
Yes, many say they do. The difficulty for chief execs, you got chief execs like (inaudible), who runs Marriott and other, you know, good fundamental
companies where they are doing big business in China and elsewhere and they say, look, we just have to weather this.
There is nothing we can do about it. It's an economic situation. As for the hedge funds, they are well and truly caught in the middle and
nutcrackered.
GORANI: All right, well, it seems like everyone is going to have to -- has no choice but to weather it and see what happens. Richard Quest in Davos,
we will see you at the top of the hour in "QUEST MEANS BUSINESS."
Alison Kosik at the New York Stock Exchange. Thanks so both of you. We'll revisit this in about 20 minutes time when we are about half an hour from
the close of trade on Wall Street.
Now to that horrific attack in Pakistan, at least 19 people dead. Dozens injured when gunmen opened fire inside a university in the northwest of the
country.
It happened in Charsadda not far from a similar attack last year by the Pakistani Taliban. That terrible attack that killed 145 people at the
time.
There are conflicting reports as to whether the same group was involved this time as Alexandra Field reports.
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ALEXANDRA FIELD, CNN CORRESPONDENT (voice-over): Security forces swarming the university in northwest Pakistan after militants stormed Batcha Khan's
campus. We heard firing from the back of the campus, he says.
Four attackers opened fire Wednesday morning taking hostages and lobbing hand grenades. Then he said, get into the rooms, don't go out. Then the
security forces came.
One student says his professor was struck by a bullet while telling others to hide. There are too many injured to count and the bodies of the dead
still inside the buildings.
Batcha Khan is in Charsadda, just northwest of Peshawar, the site of another deadly school attack. In 2014, more than 140 people were killed,
most of them young school children.
The Pakistani Taliban claimed responsibility for that massacre. A spokesperson for the Pakistani Taliban is now claiming responsibility for
this attack.
Calling it retaliation for military operations against the group. But in a conflicting statement, a central commander for the group disavowed any
role, condemning attacks on civilians and saying they are not in accordance with Sharia Law.
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FIELD: These conflicting statements seem to speak to the fact that differing factions have emerged within the Pakistani Taliban. For its
part, the government has deployed forensics team to the scene.
That team will be there to collect evidence and also any possible information about the attackers. The prime minister has also issued his
own statement widely condemning the attacks and saying that anyone who kills civilians or students has no faith and no religion. In New Delhi,
Alexandra Field, CNN.
GORANI: Let's get more now on this attack and claims and counter of claims that the Pakistani Taliban were involved. Nick Paton Walsh joins me now
live with more. Tell us a little bit about the Taliban forces in Pakistan that would or are suspected of having organized this attack.
NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, let's stay with the official statement first from Hamid Korshasort of, if you like,
the official spokesperson for the TTP, the Pakistani Taliban. They say they didn't do it.
As you heard in that report, this attack was not in accordance with sharia, Islamic law. Kind of condemning it. There is an interpretation of that,
making sure they have distance officially from this kind of attack after the attack in Peshawar in December 2014.
[15:10:03]There was a massive drop in any sort of support or the TTP had even in areas that normally would be loyal to. The (inaudible) in fact
gave a lot of ability license for the military to continuing pursuing operations in that area.
What we have instead heard today is a statement from the same man who is behind the Peshawar attack. A man called (inaudible). Now he is the TTP's
kind of one the leading figures in the area where this happened (inaudible).
And he is saying they did do it and he is saying it is a response to those military operations and quote, "the hanging of 332 friends by the Pakistani
government." There is a split certainly. It is more fractured than it used to be. That's because of the deaths of leaders in the past.
But the real impact this is having is the military operations have pushed a lot of Taliban into Afghanistan where they are having significant success
in operation against the Afghan government -- Hala.
GORANI: Nick Paton Walsh in Beirut. Thanks very much for your analysis on this story. One of our top stories this evening.
More to come after a quick break, the new "Star Wars" film and a Warriors basketball game, Jason Rezaian says he cannot wait to catch up on all he's
missed after more than a year in an Iranian prison.
I'll speak to Switzerland's secretary of foreign affairs on the key role his country played in that deal. We'll be right back.
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GORANI: "Washington Post" reporter, Jason Rezaian, made his first public appearance since he was freed from Iran last weekend. Listen.
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JASON REZAIAN: Glad to be out.
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GORANI: Joined by his family, Rezaian mostly kept quiet and he waved to journalists outside Landstuhl Medical Center in Germany. He was asked for
privacy during his recovery.
In a written statement, Rezaian says, "For now, I want to catch up with what's been going on in the world, watch a Warriors game or two, and see
the "Star Wars" movie." He also mentioned he wants to spend time with his family, perfectly understandable.
Rezaian is one of four Americans freed by Iran as part of a prisoner swap. One thing you may not know is that Switzerland was deeply involved in the
deal to release the Americans.
In fact we're happy to be joined by the Swiss secretary of foreign affairs, Yves Rossier. He is at the world economic forum in Davos, Switzerland.
Minister, thanks for being with us. First of all, explain to us how Switzerland facilitated the secret discussions between the U.S. and Iran
that eventually led to the release of these prisoners?
YVES ROSSIER, SWISS SECRETARY OF FOREIGN AFFAIRS: Well, if I would tell you the whole story, it might be a bit long. I think it's been 14 months
of heavy work. Above all of course the political courage of people on both to bridge the gap that had been separating those two countries.
[15:15:01]What we did is what we usually do because first we are no real own agenda in the region. We are not a colonial power and above all we
have been act as predicting power for U.S. interest in Iran for decades.
So that allowed us to build a relation of trust between both sides, which was a big held between the long and tedious discussions.
GORANI: And concretely, what was Switzerland providing? I mean, I know you represent U.S. diplomatic interests in Iran and have done so since
1980. But concretely, were you providing communication? I mean, were you sometimes the go-between? Did you provide locations? How did it work?
ROSSIER: It's basically all that, all that together. I mean, there have been numerous meetings. There have been moments where there was a
blockade, a big obstacle, and I think this relation of trust I mentioned before allowed us to go back and forth between the parties.
But again, the political will was there and I think that's what made the deal possible. Then there was still lots of obstacles to overcome that it
is definitely the result of the work of both. And as for our role -- sorry?
GORANI: Go ahead.
ROSSIER: No, please go ahead. Our role --
GORANI: I'm going to stop talking and let you finish that sentence. There is a bit of a delay.
ROSSIER: As for our role, we, Swiss, we are supposedly not very bright but trustworthy, independent, and above all very discreet. And we have been
doing this kind of exercise for decades.
It is an old tradition of my country and it goes along with our humanitarian tradition and administration is of course one of the main
reason why we sometimes are being called in to help along those kind of process.
GORANI: So because you're saying there were obstacles. It was more than obstacles. There was a time when the discussions broke down. Was there
ever a moment where you thought, as a Swiss secretary for foreign affairs, you thought OK, this is not going to work. This is not going to -- it's
just broken down and what did you then end up doing at that point?
ROSSIER: Again, the main work has been done by the parties themselves, but this feeling now it is not going to work that happened probably a few dozen
times, yes.
GORANI: So you did, at some --
ROSSIER: We never have to give up.
GORANI: And you did not give up.
ROSSIER: Above all, the delegations, two parties never gave up and that is what led to a successful outcome. But put it in the global picture, there
were many things going on. The discussion in Vienna, the result of implementation day, the sentiment of any claims between both countries.
So I mean, this was part of a bigger picture. It was very important for the people concerned and that was probably what our main motivation. It's
people recovering freedom on both sides.
But it's part of a global picture that was far beyond an exchange of prisoners as you obviously know.
GORANI: Right. And there was a Swiss representative, wasn't there, on the plane bringing the prisoners back in the first stop was actually in
Switzerland. Was it this a Foreign Ministry representative? What was the role of that individual, the representative of Switzerland?
ROSSIER: I mean, there were Swiss people on the plane. It was a Swiss plane who got the people in Tehran and who flew them back to Switzerland.
Our ambassador was involved. Our ambassador in Tehran, obviously. And we were a group in Geneva because the biggest part of negotiations took place
in Geneva over 14 months.
I was in Geneva and when I boarded the plane to greet the three Americans and the family of Jason Rezaian, it was a very, very good moment. Yes.
GORANI: Can I ask you then on a personal level, when you boarded the plane, because you boarded the plane in Switzerland and you met face-to-
face with these American prisoners. Presumably the first time you've met with them. What was it like?
ROSSIER: I was -- I think my first impression was that the atmosphere on the plane was extremely friendly. There were good vibes on that plane. I
think that was my impression. I didn't feel any tension.
But frankly you should ask the people concerned because they went through difficult times during the years and I was expecting probably when I
boarded, I was expecting more tension. But it was not the case and it was a good feeling.
GORANI: That's good. That's freedom for them. I understand there was even champagne and Swiss chocolates. On a more serious note, Switzerland
has lifted its sanctions against Iran as a result of this nuclear deal having gone through with Iran respecting its end of the bargain.
[15:30:00]What concretely does that mean for Iranian businesses or any Iranians operating in Switzerland?
ROSSIER: Well, Switzerland had always a different approach on sanctions as we usually do. So Switzerland didn't take all the sanctions due to our
position as a protecting power. But, well, due to our tradition, we did not apply the sanctions and the sanctions having an impact on the whole
population.
And probably as well the somewhat different attitude of Switzerland as far as sanctions were concerned was probably one of the reasons that gave us
the possibility to help along this operation.
GORANI: All right, Yves Rossier, the secretary --
ROSSIER: Sorry.
GORANI: We have a long satellite delay. Go ahead and finish your thought please.
ROSSIER: But as far as our position now, Switzerland's all remaining sanctions have been lifted like the other European countries. So there
will probably be a comeback to normality and that will definitely take more time than many people think because the Iranian economy has been delayed
from the rest of the world for decades.
So it will not be something that will be done overnight. That will take months. Definitely take months until some sort of normality is back. And
I mean, I think the negotiations that started in Geneva on Monday about Syria would be definitely as this operation has been for the future of the
region.
GORANI: All right, Yves Rossier, in Davos, the secretary of foreign affairs for Switzerland. Thank you very much for joining us sharing some
of the stories. Perhaps the lesser-known stories of this Iran deal that led to the release of these Americans.
Coming up, asylum seekers in one English town say their homes have become targets for vandalism and abuse. And they say the company that built the
homes may have deliberately made sure to make them stand out. We'll be right back.
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GORANI: Welcome back. The British Home Office is ordering an urgent review of housing for asylum seekers in the northeast English of
(inaudible).
"The Times" of London published claims that the contractor in charge who got the government deal to house these asylum seekers painted doors red in
order to distinguish them.
But many asylum seekers worry it is making their homes too easy to spot and making them targets for abuse. Take a look.
(BEGIN VIDEOTAPE)
GORANI (voice-over): To an outsider these red doors may look like a cheery decoration, brightening the streets of this largely industrial town in
northeast England. But to those who live behind them, it can feel like a target as the majority belongs to asylum seekers like 32-year-old Abdal
Albashir.
ABDAL ALBASHIR, SUDANESE ASYLUM SEEKER: You tell everyone I'm asylum seeker, I'm less person than anybody, and I should be targeted. That's
what's happening.
[15:30:00]GORANI: The allegations were brought to light by "The Times" of London, which found that many asylum seekers in the area have felt
stigmatized by the red doors.
RASHID ALI, MOROCCAN ASYLUM SEEKER: I see the paint but I don't know what it mean. But I know after a couple days I know it is target because there
were foreign national in the streets.
GORANI: After reports of arson, vandalism, and intimidation a local politician is bringing the issue to parliament's front door and pointing a
finger at the contractor, Jomast, in charge of housing asylum seekers in the area.
ANDY MCDONALD, MIDDLESBROUGH MP: Jomast has 168 properties in two wards, 155 of them have their front doors to the street painted red. And this
simply marks out those properties, their inhabitants, for those with prejudicial motivations and evil intent.
GORANI: Something that the property owner denies.
STUART MONK, JOMAST OWNER AND DIRECTOR: I don't think that really the average guy walking down the street would be able to distinguish between to
make any distinguish between asylum houses and any houses on the street particularly.
GORANI: The company that oversees Jomast and awarded the asylum housing contract for the area says there is no policy to house asylum seekers
behind red doors, but promises to repaint the doors different colors.
But are the door colors just the tip of the iceberg in communities like Middlesbrough where the portion of asylum seekers is the highest in
Britain? That's what one local campaigner for refugees believes.
SUZANNA FLETCHER, FORMER LOCAL COUNCIL MEMBER: The housing issues like the shared rooms where people have to share a room and they have no common
language or faith or culture. That is the issue for them not having that, to take things forward.
GORANI: A problem that may go deeper than the paint on the front doors of a few hundred asylum seekers.
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GORANI: Joining us now is the MP for Middlesbrough, you saw it in that piece. The MP for the town at the center of the controversy, Andy
McDonald. Thanks for being with us.
Do you believe that this subcontractor deliberately painted doors red to identify asylum seekers homes, is that what you think?
MCDONALD: No, I don't. But the outcome is exactly the same. By same by simply painting all of the doors the same color, identifiable by 155 out of
168 properties the company owns. I don't think there is a deliberate attempt.
But the people know where they are and it is a very, very tiny minority of people who will behave in that way. We are very welcoming town. We've had
a good history.
GORANI: But that tiny minority, they are -- there are accusations of arson, of dog excrements being thrown at doors, et cetera, have there been
any arrest here?
MCDONALD: No, there haven't and what we got to do is go through that quite forensically to see what the extent of these complaints is because my
understanding is that that hasn't been widespread.
And those who are looking after people seeking asylum, charities concerned, are also reporting that that is not their experience. There are concerns
about what goes on behind those doors in terms of the multiple occupation and they are putting people together in circumstances that you really ought
not --
GORANI: And who is responsible there for making sure that overcrowding behind the doors doesn't continue to be an issue here?
MCDONALD: Well, Jomast has the contract.
GORANI: So it's their responsibility?
MCDONALD: Right through the chain of G4s being the major national contractor, but ultimately the responsibility rests for the home office and
I think this issue is now on the radar of the home office and the minister concerned.
GORANI: So they are going to repaint the doors and they made that promise. But not right away, right? They gave themselves a few months.
MCDONALD: Yes. They really are not to do that. They should do it immediately. Instead of three to six months, they should be resolved in
three to six weeks. It isn't the biggest issue in the world, but people are saying that they should repaint the doors themselves.
Some have tried to do that even though they don't have money for the materials and Jomast repainted them back to the red color.
GORANI: Let me ask you, why is it that Middlesbrough, and this is your constituency, has such a high portion of asylum seekers, higher than the
national, certainly higher than the national average but higher than the maximum that should be allowed?
MCDONALD: It is higher than the ratio advised but it isn't a problem for us. But the issue is that property became available because there is an
area that was designated to redeveloped and funding regime changed in 2010 with the change of government.
And that results somebody was able to buy an awful lot of property very, very cheaply and that's been able to maximize profit out of this terrible
tragedy of people fleeing persecution and war and the deprivation.
GORANI: I know it is a tiny minority, but how do you explain this level of animosity against people who after all, as you just said, are running away
from persecution misery and war.
MCDONALD: I'm afraid you find prejudice in the minority in every single society and every population throughout this country and others as well.
[15:30:00]
But we can't let that color the way we view this matter. Because the majority of people are wonderfully welcoming. The churches and charities
and networks are there. We have a proud tradition of it. And that's what I focus on. Not these tiny minority of people that behave badly. But let's
remove it as a problem and not mark out asylum seekers in such properties.
GORANI: But your hoping that those responsible will be held accountable. Because so far as you said, no arrests.
MCDONALD: That's right, and hopefully that will happen but it is not always easy.
GORANI: Andy McDonald the MP for Middleborough, thanks very much you for joining us on CNN. We appreciate your time this evening.
A check on our top stories still ahead.
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GORANI: We will look a closer look at oil, China, other factors driving down the world's stock markets. That and more coming up. We'll be right
back.
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GORANI: Welcome back. It's been another pretty miserable day for stocks around the world. But in the final hour of trading the main indices are
making a pretty impressive come back.
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GORANI: The Dow Jones is down 127 right now but it was down as much as 500 point a few hours ago. It does follow a day of steep losses in Europe and
Asia. But a bit of a recovery there.
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GORANI: Gunmen stormed the campus of a university in northwest Pakistan killing at least 19 people.
(BEGIN VIDEO CLIP)
GORANI: Government officials say all four attackers were killed. A senior commander with the Pakistani Taliban claimed responsibility for the attack
but a spokesman for the groups' central organization denied any part in it.
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GORANI: And also among the stories were following, Washington Post reporter, Jason Rezaian waved to the media today.
(BEGIN VIDEO CLIP)
GORANI: He said very little in his first public appearance since leaving Iran. Rezaian is one of four Americans whom Iran freed as part of a
prisoner swap. He has asked for privacy during his recovery.
(END VIDEO CLIP)
GORANI: Two leading U.S. science agencies have both announced that 2015 was the hottest year on record and by a wide margin. All of us last year felt
it. Now it is scientifically an official statistic.
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GORANI: The National Oceanic and Atmospheric Administration and NASA have been keeping global temperatures records for 136 years. They say 2015 was
9/10ths of a degree Celsius higher than the 20th century average. It is partly fuelled by one of the strongest el Nino's on record.
(END VIDEO CLIP)
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GORANI: We're drawing closer to the "closing bell" on Wall Street, and with 30 minutes left of trading there's something of a comeback under way. At
one point today it was looking absolutely awful. The Dow down some 500 points. Analysts are putting the blame for the volatility on oil.
(BEGIN VIDEO CLIP)
[15:35:05]
GORANI: Look at Brent Crude during the last three weeks it's fallen steadily. Here you have it Brent Crude and dipping to a 12-year low
Wednesday. The free-fall is happening in the wake of even slower growth in China.
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GORANI: All right. Where are we going now? Are we going to New York, are we staying here? We're going to - we are going to New York. All right. Let's
talk about what's going on here. Aaron Task is the digital editor of Fortune joining us now live from New York. Aaron, just a bit of a technical
glitch there. But it seems as though the Dow is recovering a bit. Do people, do you think, investors and traders, feel like perhaps this has all
been overdone?
AARON TASK, DIGITAL EDITOR, FORTUNE: Well, I think the traders might. I think this is the kind of day where traders will say aha we reached some
sort of inflexion point in the sell-off then we were going to get a bounce here; maybe, for a couple of days. If you are really a long term investor
you probably should ignore all of this or at left most of it. But it's been pretty scary out there to start the year that's for sure. And the fact that
we came back so far today, is a good thing in the short term but it might have been better if we just wash it all out and be done with the selling.
Because I think this is going to continue, this kind of wild action.
GORANI: Now we keep talking about the price of oil and that's the concern but the concern really is that oil is because growth in countries like
China is slowing, right? I mean do you think and I ask this -- I've asked this to our other reporters, do you think that this decline on stock
markets is a true reflection of the economic picture around the world?
TASK: Well, it's definitely a reflection of concern about the path of the global economy. China's economy is slowing we know that. They just reported
their lowest GDP annualized number in 25 years. U.S. economy is not exactly going gang busters and neither is Europe. So where is the -- what's the
engine of growth for the global economy?
(BEGIN VIDEO CLIP)
TASK: And that is the concern and the price of oil falling so steeply is definitely a barometer of that. And people look at it and it's a supply
issue too. You now have the Iranians coming back on-line. We're still pumping a lot of oil here in the U.S. and the demand just isn't there. But
that price, if you're a trader you're looking at that and you're saying that price is telling you something that I don't like, it's telling me that
there just isn't going to be any demand out there because the global economy is going to keep slowing even further as we get into 2016. The
market (inaudible) is often wrong but that's what it's - that's what it's telling you at this moment.
GORANI: That's the reflection of the concerns, not necessarily a reflection of the economic picture. Hopefully not. Now we have corporate results as
well and this is going to give us an idea beyond the price of oil and the official estimates for growth in China of the health of the economy and
largest economy which is in the United States. And there has to be hope there that these will reveal something more encouraging.
TASK: Right. There is hope but it's not a lot of hope. I mean corporate earnings growth has slowed a lot last year. It's not expected to do well at
all for the fourth quarter numbers which we're starting to get right now.
You know last year we had a lot stock buy backs and that's how corporations were able to gin up their earnings per share. But that's not revenue
growth. They're not getting sales. Which again is another reflection of a slowing economy.
So again, we're hoping the market is wrong here about where the economy is growing but the market is starting to bet that yes, all these things are
starting to add up and tell you that 2016 is not going to be a good year for the global economy.
GORANI: So this is not the end of it? I mean we're seeing the Dow rebound as you said, you know perhaps it was better to get it all out of our system
in one session. We're rebounding, we are down 152 now for the Dow at 15,863 right now, we're about 20/22 minutes away from the official close of
trade. But really this year might be, we might see a lot worse, you think?
TASK: Well I don't know if we are going to see a lot worse for the whole year but I think in the short term I wouldn't say oh, the selling is over
because we had a big come back today. I mean we're still down 150 points heading to the close. Although right before we came on camera, the NASDAQ
was in the green which is a big come back there. So some of the hot money, starting again, or maybe the selling has been overdone in the short term
but there's a lot of damage done technically to the market and to individual stocks for sure.
So traders you might want to take a stab here at something and that's what they are doing intraday. But again if you're an investor, you know
hopefully have you a long-term plan and you want it stick to it. Now is not the time to be a hero and try to bet that oh, the selling is all done and
put all your money in. That's never a good idea.
GORANI: Don't be a hero. Never good.
TASK: Don't be a hero.
GORANI: Aaron Task -
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GORANI: No, try not to. Aaron Task of "Fortune," thanks very much for joining us we really appreciate your take on things.
All right we're going to keep our eye by the way on the market and don't forget "Quest Means Business" is on at the top of the hour with more market
coverage. rage.
A warning for pregnant women who live or have traveled to parts of Central and South America now.
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GORANI: The U.S. Center for Disease Control and Prevention is advising you get screened for the Zika virus. It says that pregnant women who
experience two or more of the virus symptoms, fever, rash, joint pain and red eyes should undergo a blood test for this disease which is mosquito-
borne.
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GORANI: The Zika virus is linked to abnormal brain development in infants. And let's go to Rio Di Janeiro where we find our Shasta Darlington there.
How many women has this affected?
SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT: Well Hala, while this is news in the United States, this is - this is really a pandemic here. At
least that's what doctors are calling it. And that's because since the Zika virus was first detected in Brazil in the first half of last year, at least
a half million cases of Zika has turned up and since they've linked it to these birth defects known as microcephaly.
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DARLINGTON: You see these babies born with small craniums, developmental issues, serious developmental issues that can even lead to death. Well
since that Zika has been detected more than 3,500 infants have been born with microcephaly. Just to give you an idea in an average year there are
about 140 or 150 cases in Brazil. So this is causing panic in many parts of the country where you find the mosquitos that carry the Zika virus.
Obviously the research is ongoing, this is something new. It's really - it's new for doctors here in Brazil and really around the world. But I
think that the big issue now is that the CDC is issuing this warning for visitors to brazil and to more than a dozen countries throughout Latin-
America, including the Caribbean, and Puerto Rico. At a time when there's a lot of tourism. You know we're six months out from the Olympics.
So while this is already a big problem in Brazil that's putting a big burden on the health system, now there's the concern that it could hit
tourism to Brazil and to the Caribbean at the height of the tourism season really Hala.
QUEST: Right. And as you mentioned, six months out from the Olympics. What are authorities doing to reassure visitors and they are going to have tens
of thousands of people coming from all over the world. What are they doing to try to sort of, you know, lessen people's concerns here?
DARLINGTON: Well that isn't their prime concern right now. In fact what we are hearing from doctors they're telling Brazilian women to put off getting
pregnant if they can. That's how concerned they are about this.
We are in the middle of the rainy summer seasons when you get a lot of mosquitos, and so their message, especially in the northeast where this is
more prevalent is listen, if you have - if you have the option, if you have the choice, put off getting pregnant until we figure out what is going on,
until we control the mosquito population. And so that's where a lot of efforts are being put in.
They're sending soldiers out to fumigate, to try and put chemicals in standing water, eliminate the larvae of the mosquito. And so the real
efforts are in the health system, prenatal care to try and detect the virus, which will give them a heads-up that they've got to keep - they've
got to keep a close eye on the women who have the virus to see if their fetuses develop the microcephaly.
Then there's going to be the post natal care. These are children, so far 3,500 of them who are likely going to need constant care throughout their
lives.
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DARLINGTON: So the Olympics are certainly going to be on the radar screen eventually. But for Brazilian healthcare officials, that's just not the
issue right now Hala.
GORANI: OK, Shasta Darlington in Rio, thanks very much. This is "The World Right Now."
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GORANI: Sarah Palin is back and she's endorsed Donald Trump. What effect will it have on the Presidential race? We will be discussing it with our
senior political reporter in Washington coming up.
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GORANI: Just one day after Sarah Palin endorsed Donald Trump the two were on stage again at a campaign rally in Oklahoma.
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GORANI: Trump received the big name endorsement less than two weeks before the Iowa caucuses. Sarah Murray reports on Palin's reemergence.
SARAH PALIN: Are you ready to stump for trump?
SARAH MURRAY, CNN INTERNATIONAL CORRESPONDENT: Sarah Palin is back, center stage and throwing her support behind Donald Trump.
DONALD TRUMP, REPUBLICAN PRESIDENTIAL CANDIDATE: We're going to give them hell.
MURRAY: Nearly a decade after the conservative fire brand rallied rocket crowds as John McCain's 2008 running mate Palin is taking on a new mission.
Shoring up Trump against some of his rivals most potent attacks. And Sarah Barracuda came out swinging.
PALIN: Are you ready for a commander-in-chief who will let our warriors do their job and go kick ISIS ass! No more pussy-footin around.
MURRAY: Slamming GOP leaders.
PALIN: (inaudible) wearing this political correctness kind of like a suicide vest.
MURRAY: And reassuring Iowa voters that Trump, a former Democrat, is a true conservative.
PALIN: Oh, my goodness gracious. What the heck would the establishment know about conservatism?
MURRAY: Palin even casting the businessman as a populist who just happens to be a billionaire.
PALIN: Yes, our leader, a little bit different. He's a multibillionaire. Not that there's anything wrong with that. But it's amazing, he is not
elitist at all.
MURRAY: Yesterday Trump pressing pause on his primary battles.
TRUMP: I'm going to be non-confrontational today for a change.
MURRAY: To relish his celebrity endorsement.
TRUMP: This is a woman that from day one, I said if I ever do this, I have to get her support.
MURRAY: As Cruz ended a tough day on the trail. With a double wammy. Losing Palin --
TED CRUZ, REPUBLICAN PRESIDENTIAL CANDIDATE: Regardless of what Sarah decides to do under 2016 I will always remain a big big fan of Sarah Palin.
MURRAY: And facing new attacks in Iowa as governor Terry Branstad, a republican heavyweight said Cruz needs to be defeated.
TERRY BRANSTAD, IOWA GOVERNOR: He hasn't supported renewable fuels and I believe it would be a big mistake for Iowa to support him.
MURRAY: It's a jab Cruz says was to be expected.
CRUZ: Now look, it is no surprise that the establishment is in full panic mode.
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GORANI: That was Sarah Murray reporting. Palin first came to the world's attention when she was picked as John McCain's running mate in 2008, here's
a bit of a throwback for you.
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PALIN: Are you ready to make John McCain the next President of the United States. Are you ready to send us to Washington to shake things up?
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GORANI: Of course it was Barack Obama who won that election. Since then though Palin has remained popular with a part of the Republican base, the
tea party for instance. You have also some Christian conservatives. In the public eye as well, she stayed up there, with some colorful statements.
PALIN: You know, I think we can send a message to say, you want to be in America, A, you better be here legally or you're out of here. B, when
you're here, let's speak American. I mean let's speak English and that's kind of a unifying aspect of a nation is the language that is understood by
all.
Oh, the naive Obama state department. They say we can't kill our way out of war. Really? Tell that to the Nazis. Oh, wait, you can't, because they're
dead. We killed them.
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GORANI: Let's head to Washington now for more on what this endorsement could mean. CNN senior political reporter Stephen Collinson is there.
Stephen, What - I suppose my question is, is this -- is this going to help Donald Trump, this Palin endorsement?
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STEPHEN COLLINSON, CNN SENIOR POLITICAL REPORTER: I think in some ways it will Hala. You know it's like another twist in this strange reality show
that's become the Republican Presidential race. If you look back to 2008, it was interesting to look at clips, Sarah Palin was almost like Trump
before there was Trump in a political sense. She has a way of connecting viscerally with these conservative crowds.
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COLLINSON: She harnesses people's grievances. She give voice to their prejudice in a very divisive extreme way as it would seem to -- especially
outsiders and people outside the United States. But she pioneered that brand of conservatism and campaigning that Donald Trump has taken to a
separate level in this election.
So I think it can help him. You know you can you always say endorsements don't matter that much. Voters make up their own minds. But if you look
back to 2012, there were 34 votes in the Iowa that decided the caucuses. If Sarah Palin moves 200, 300, 400 votes from Ted Cruz to Donald Trump, I
think you can say that this is a success for him.
GORANI: But why is Sarah Palin popular with conservative voters? I mean, you know, her daughter has had two children out of wedlock with two
different men. I mean I'm not saying that's bad, I'm just saying that goes against you know what some of these values that are kind of -- that base of
what's considered important for some of these voters. Her son was arrested on suspicious of domestic abuse, et cetera. Why is she popular?
COLLINSON: That's right. And it doesn't seem to make sense. And I think you can say a lot of the same things about Donald Trump. But what Palin and
what Trump have managed to do is emerge as the surge of elites of establishment politicians in Washington. Establishment politicians in the
Republican party.
A lot of the people that support Donald Trump, they're not down the line conservatives. They're people that are sort of fed up with political
correctness. They don't like the -- what they see as being looked down to by leaders in Washington. And the leaders of the Republican party. So
they're not necessarily sort of ideologically pure conservatives that are voting for Donald Trump, they are conservative in outlook but they are not
extreme right wing conservatives, Christian conservatives who vote for Donald Trump.
So, anyone that stands up there and takes shots at the elites in Washington is automatically popular among these people.
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COLLINSON: And they feel that people like Trump and people like Palin say the things that they think which no one else says and that's what makes
them popular.
GORANI: All right, Stephen Collinson, thanks very much joining us from Washington, D.C. Always appreciate your analysis. A lot more coming up
after the break.
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GORANI: The hills are alive with the sound of music our very own Richard Quest takes a break from the economic doom and gloom at Davos to indulge in
some yodeling. (MUSIC PLAYING)
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He may have met his match in the alps this week. Richard visiting a local yodeling choir and put his vocal range to the test.
GORANI: Well CNN's Richard Quest is well known for his impressive voice as much as for his expertise on business and aviation. But he may have met
his match in the Alps this week.
Taking a break from the World Economic Forum at Davos, Switzerland, Richard visited a local yodeling choir and he put his vocal range to the test.
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RICHARD QUEST, HOST "QUEST MEANS BUSINESS:" Yodeling. The music of the mountain.
The true Sound of Music. [singing] well there's more to yodeling.
Here in Davos, the yodel choir (parsen) are the experts.
STEFAN SCHMID, YODEL CHOIR: We have some new yodelers that just started last year maybe and some that have been together for more than 30 years.
QUEST: Yodeling is an integral part of Alpine tradition, passed down through the generations.
SCHMID: Way back in past when there was no mobiles or nothing, the communication from the farmers being up on the Alps down to the valley was
like by voice how they were singing to their wives or to their families down there, they could tell, well he's okay.
QUEST: To get that authentic yodeling sound, you need sharp changes in pitch. And if that sounds simple, let an amateur have a go.
The difficulty with yodeling, you mustn't meander slowly up to that top note, you jump right to it. These are the local farmers, the business
people, even the baker. And yodeling is in their blood. Once a year, the world leaders pretend they own Davos, but these are the real people of the
mountain.
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GORANI: Richard Quest is next. I'm not sure he will be singing the top of his program, but he'll have more on the stock market, sort of doom and
gloom on Wall Street and beyond. Stay with CNN. Quick break, we'll be right back.
END
