Return to Transcripts main page
Quest Means Business
British Students Protest Tuition Hike; Preview of the Chevy Volt
Aired November 10, 2010 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MAX FOSTER, HOST: Breaking point, scenes of violence in England as students protest against higher fees.
Divided they stand. Currencies and trade cast a shadow over the G20 summit.
And General Motors puts a spark in its profits. As we get a sneak preview of brand new hybrid, which is the Chevy Volt.
I'm Max Foster in for Richard Quest. This is QUEST MEANS BUSINESS.
Hello to you.
At home and abroad global leaders have a fight on their hands. Tonight we witness the first violent protests in Britain since austerity cuts were announced.
French pensioners are about to start out a little older, despite massive opposition there.
And G20 leaders arrive in South Korea for a summit overshadowed by currency and trade disputes. Well, demonstrators remain outside the headquarters of David Cameron's Conservative Party. The protestors smashed their way in earlier, setting off flares and spraying anarchist symbols on the walls there. The violence came during a student protest over government plans to raise tuition fees. Unions said40,000 were on the streets in what had been a largely peaceful demonstration. Atika Shubert is there. She joins me now.
Atika, the pictures look appalling, but how bad was it in reality?
ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: It was pretty bad. I mean, it started out very peacefully; 40,000 student demonstrators, pretty much the police now have it under control. As you can see behind me now, this is the last of the hardcore protestors behind me. The police have really managed to push them out here. And get a better hold of the situation. I'm just going to walk around here to show you little bit more of the kind of destruction that has been left behind there.
As you can see over here, this is the small plaza that was right in front of the building that houses conservative party headquarters. It is completely trashed. Earlier there were hundreds of students here. And they had lit a bonfire in the middle there. They did manage to smash through the windows there, into the lobby. A lot of that graffiti there, a lot of vandalism. They pulled out a lot of the furniture. Quite a few of them were actually able to get inside and onto the roof, at one point even throwing down the fire extinguisher.
A number of people were injured in this protest. Quite a few were arrested as well. A lot of people are asking how did this happen? Did the police simply not estimate the amount of crowds that were going to come out today? Did they think that far less students were going to be coming out? A lot of people asked me questions, now, why it took so late in the day to get control of the situation, Max.
FOSTER: I'm just wondering how representative this is of national feeling though. Because I know the National Union of Students has actually called this violence despicable.
SHUBERT: Yes, I would say a lot students actually coming up to us saying, you know, we don't support this violence. We're angry, but we don't think this is the right thing to do. This is a small group that initially started it and then attracted a lot of attention from other students who came in to see what was going on, basically.
You know, unfortunately it probably overshadows the message of a lot of students who are basically saying what they want is the government to back down on this policy. They don't want to see their tuition fees tripling. That is what has lead to the anger. But it is interesting, one student said, they weren't surprised it got to this point. Because there is a lot of pent up anger about all kinds of budget cuts that have been conducted by the government, so this is really that first outpouring of that anger that came out.
FOSTER: Atika, thank you very much for joining us from the wreckage there in Westminster.
Well, the pension reform bill that sparked major protest, meanwhile, in France, is now law. It includes an unpopular measure that raises France's retirement age from 60 to 62. French President Nicholas Sarkozy signed the measure adding that he was fully aware it was a difficult reform. Millions of opponents took part in strikes and demonstrations. The most recent ones on Saturday. (UNINTELLIGIBLE) thousands protestors.
President Obama is trying to ease tensions, meanwhile, among G20 leaders ahead of Thursday's summit. In a letter to other leaders he attempts to shift the focus away from criticism of U.S. policy and onto the issue of global trade imbalances.
Mr. Obama said, when all nations do their part, whether they are emerging economies or advanced, we all benefit from higher growth. Paula Hancocks is in Seoul. I asked her if we are expecting to see serious rifts at this summit.
(BEGIN VIDEOTAPE)
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, certainly, there is no risk when it comes to deciding what exactly is going to be the main issue. But there are a lot of rifts when it comes to that main issue. This long-standing talk, over recent weeks of a currency war, so basically there are definite divides between the leaders, as they arrive here in Seoul, for the G20 meetings.
Of course it started off with the U.S. blaming China for allowing its currency to be artificially low, which of course makes it exports very cheap, which is good for China, but not good for the countries that trade with China. But now some of that verbal fire is actually directed at the U.S. after what it called the QE2, recently, by the Federal Reserve; $600 billion injected into the U.S. economy, which in turn will push the dollar down, helping the U.S. exports, though a lot of the verbal fire is turning to the U.S.
We heard that China and Germany accusing the U.S. of hypocrisy. China-sorry-Germany actually called the policy, quote, "clueless". So there is a lot of fighting talk out there and the meeting hasn't even started yet, Max.
FOSTER: Do you think we are just going to get a taste of how people think we should be moving forward, or will there be some solid agreement?
HANCOCKS: Well, this is the crucial question. I mean, for this meeting to have any credibility there has to be something concrete coming out at the end of it, with its final communique on Friday, there has to be something concrete that people can see. Otherwise future G20 meetings may not have the same impact as they have in the past. Of course, experts say that the G20 always works best when there is a crisis, because everybody is unified.
And for this G20 meeting to really be successful all countries here, all leaders, need to put aside national interests and think about international economic cooperation. But, of course, every single leader has an economic problem back home. They haven't an electorate that they want to create more jobs for, so it is very difficult to put national interests to one side.
FOSTER: A very large, and a very strong trade union movement in South Korea as well. They want to get their voices heard. At least the security forces seem to have that sense, because a massive security force is being put together. Are South Koreans expecting big protests from trade unionists there?
HANCOCKS: Well, what we have heard from the organizers so far is that on Thursday there could be around 20,000 protestors on the streets. What we are hearing from the police is that there will be 40,000 riot police on the streets. So that is pretty much two policemen for every single protestor. Now we have got some pretty strict rules, we understand, from the police when it comes to these protests.
There are only allowed in a certain area; they are allowed to walk for one mile. They will not be allowed anywhere near the leaders that are meeting, as in previous G20 meetings. There is about a one and a half to two kilometer perimeter around these leaders that they will not be able to get anywhere near. But of course, they will try. We have seen in previous G20 meetings, there is a small element that will try to go further. But just on Sunday we saw some protests here in Seoul. There was a couple of thousand of protestors and a huge police presence, so obviously this is what they are going for on Thursday as well.
(END VIDEOTAPE)
FOSTER: Paula getting ready for the G20.
Well, one nation in particular will be at the center of the much of the debate over there in Seoul. China released new trade numbers today. And they confirmed just how imbalanced-unbalanced the global economy actually is. China's trade surplus-take a look at it-a massive increase to $27.2 billion in October; up 61 percent, on September. Exports and imports both soaring. Yawning-there is a yawning gap with America. The trade deficit there up $27.8 billion, would you believe?
Now, China is telling banks to horde more cash. It is raising capital ratios and this is all reducing the impact of the wall of money that has flooded into emerging markets because of QE2. But China has allowed the yuan to rise to its highest level since 1993. Some say not enough. 1993 is when the current regime was set up.
Now that has appeased some critics who are pressing China to allow its currency to float freely. Britain's Prime Minister David Cameron, meanwhile is concluding a visit to China. And he says the nation, China, has decisive role to play at this summit.
(BEGIN VIDEO CLIP)
DAVID CAMERON, PRIME MINISTER OF GREAT BRITAIN: No longer can people talk about the global economy without including the country, China, that has grown on average 10 percent a year, for three decades. No longer can we talk about trade without the country, China, that is now the world's largest exporter and the third largest importer. And no longer can we debate energy security, or climate change, without the country, China, that is one of the world's biggest consumers of energy.
(END VIDEOTAPE)
FOSTER: So are we looking at a showdown in Seoul? Well, I'm joined by Silvia Ardagna, she is from Bank of America, Merrill Lynch.
Thank you so much for joining us. You are watching this very closely indeed. It does seem to us that there are two sides appearing here. China, on one side, America on the other; is that too simplistic?
SILVIA ARDAGNA, BANK OF AMERICA, MERRILL LYNCH: Well, I agree that the headline of the debate is between China and the U.S. The G20 will also involve other countries and like Germany, will likely to be very vocal in the next G20 meeting. Just a few days ago Angela Merkel said that Germany's current surplus is based on strong fundamentals and not on currency manipulations. And I strong agree with that statement.
FOSTER: And normally you would have a situation where everyone was criticizing China for not releasing the yuan more, but actually the criticism seems to be pointed at America and this massive injection of cash it recently pumped into the economy, which people are suggesting could create a bubble. And that is frustrating world leaders. It is creating imbalances, they say. Do you agree?
ARDAGNA: There is always, you know, a little truth in everything, I would say. I mean, the Fed embarked on the measures of quantitative easing, thinking of the domestic situation. And of course, if the U.S. economy improves that is also going to benefit the world economy as well. Now, the main concern for the U.S. economy is that inflation is very low and employment is still very high. So, on both sides of the dual mandate, the Fed was falling short of its basically delivery target. So we-you know if this measure would help the economy we would all benefit as well.
FOSTER: And people like you taking the G20 seriously these days? And if they don't come up with something solid, would that damage their credibility even more?
ARDAGNA: I think we will watch it, but I don't expect any major, development coming out of it.
FOSTER: So what's the point?
ARDAGNA: I mean, still having, you know, talks and exchanging ideas between policymakers, it is going to be, you know, an improvement in the terms of like, at least, thinking and policy measures that they might think about it.
FOSTER: OK, thank you so much for joining us, Silvia Ardagna.
ARDAGNA: My pleasure.
FOSTER: Now, partying like it is 1999? General Motors is reporting its best quarter in 11 years. We'll look at what is behind the return to form and why one of its latest offerings, the Volt, could spark big rises of future sales.
(COMMERCIAL BREAK)
FOSTER: It is General Motors best quarter in 11 years. Strong sales in China help swing the company to a net income of nearly $2 billion in its third quarter. All of this coming on the eve of the company's IPO and an important product launch. CNN's Maggie Lake, our very own petro head, joins us from New York.
(LAUGHTER)
I'm teasing.
MAGGIE LAKE, CNN FINANCIAL CORRESPONDENT: You know that is not true, Max. You are just teasing me. Exactly.
But, hey, let's talk about those GM results. They were pretty good looking right. Third quarter, straight quarterly profits, North America, that key market, showed a lot of strength. But this is the most interesting thing about the earnings report. I'm sure it jumped out at you as well. They sold more cars in China than in North America. Now if that is not a sign of the changing times for automakers, I don't know what is.
You know, in some respects that is all in the rearview mirror, at least the earnings are. What GM has to do is keep the momentum going, especially as we are heading into an all important IPO next week. They need to concentrate on the future. And this is a company which has been criticized for a long time for with being out of touch with its consumers. It is the people who buy the cars, the people around me here on the street, in New York, they haven't been making the right cars that people need or want.
And that is really what they need to do to prove themselves. And one of the big bets they are making is on the Chevy Volt, their electric car. It hits the showroom next month, in December. But I got a chance to get a little sneak peek and a test drive.
(BEGIN VIDEOTAPE)
LAKE (voice over): General Motors, a company with a fabled past hopes to redefine the future with the soon to be released Chevy Volt. As the Volt hits showrooms a lot of people want to know how it drives and how it all works.
(On camera): Normally at the end of the day, when I'm getting ready to commute home, I would be worried about filling up my gas tank. But today is different. Today I'm going to test drive the Chevy Volt. The new electric car GM is rolling out. And Frank Moultrie is here to show me the ropes.
Frank, before we get going, is there anything I need to know that is different about this car?
FRANK MOULTRIE, GENERAL MOTORS: Well, yes, right now this is an electric car. This is at a port, where you have to charge it. And you simply press the button, open the door, and you have-
LAKE: An outlet.
(LAUGHTER)
MOULTRIE: There is an outlet right here.
LAKE: OK.
MOULTRIE: And you let it charge.
LAKE: This is not the-there is also a regular gas tank, too, correct?
MOULTRIE: Yes, just like any other car.
LAKE: Put my foot on the break and hit power?
MOULTRIE: The button.
LAKE: All right. Wow, it doesn't even make a noise. Here we go.
It is funny because it doesn't feel any different-I mean, just feels like a nice drive. You don't have any sense of hesitation or anything. So-
MOULTRIE: The seamlessness-
LAKE: The actually driving experience isn't any different, it is literally just fueling it.
MOULTRIE: Absolutely. I mean, this car was designed to mimic-
LAKE: Maybe it is quieter, that is the only thing I would say.
MOULTRIE: Yes, it is quiet.
LAKE: Yeah.
(Voice over): As I make my way home the Volt turns a lot of heads.
(On camera): Do you like it?
How many miles to the gallon? We are getting a consumer asking a question.
MOULTRIE: I'd say it all depends on your driving experience.
LAKE: It all depends.
UNIDENTIFIED FEMALE: Do you work for General Motors.
MOULTRIE: Yes.
UNIDENTIFIED FEMALE: Tell them they priced this too high. I wanted one.
Do you like the style?
LAKE: It drives nice.
(Voice over): Mileage and the Volt's 41,000 price tag are too of the big questions and concerns consumers have about the car. With its 400 pound battery, and its gasoline powered generator, the Volt includes groundbreaking technology. And its closet rival is currently cheaper Nissan LEAF.
(On camera): It is so sophisticated and I know that there is a lot of software. This is sort of like we are riding on a giant, in a giant computer, isn't it?
MOULTRIE: There is an awful lot of technology in this vehicle. An awful lot-the algorithms, the technology involved was a tremendous undertaking. And it has never been done before. This car was built for the people who have an average daily commute of 40 miles or less.
LAKE: Right.
MOULTRIE: So, in that regard, you would never use any fuel at all.
LAKE: I'm going to plug this in, first.
MOULTRIE: That's good.
LAKE: Right? And that is how you would do it?
MOULTRIE: Good. Just let it hang here.
LAKE: I mean, especially in the rain.
MOULTRIE: Right there, hit that.
LAKE: Just like a gas-OK.
MOULTRIE: Just plug it in.
LAKE: Do I need to hold this button?
MOULTRIE: Just push that in, just like that. There you go.
LAKE: That's it? And that is it. And then I can go in, go to sleep, come out tomorrow morning and it will be charged.
MOULTRIE: You'll be all set.
LAKE (voice over): The next morning.
(On camera): I think it might still be charging. But I think we are OK to wrap the cables up.
This used to be a gas tank, yesterday, today it is a battery. And the green light was still on, because I'm not totally charged, but you can see I'm almost there. So, I think I will be riding on electricity on the way to work, before it changes over to gas.
(voice over): A whole new way of getting to work. We'll see if the buzz over the Volt will translate into sales.
(END VIDEOTAPE)
LAKE: Yes, I do get up in the middle of the night to come to work, Max. But seriously, it was really surprising to me that as we were driving, I was concentrating on, on driving. That people were stopping, honking their horns, and asking me to roll down the window to ask about it. So, certainly, some good momentum from GM.
But that price tag? You heard the woman asking about it, concerned. And one of the things I was asking the GM representative about was the fact that it was so sophisticated. Does it make it hard to repair? Is it going to breakdown all the time? And are there mechanics out there who know how to fix it? So certainly some hurdles to get over, but GM very pleased so far, about the buzz around this electric car, Max.
FOSTER: One to watch. Maggie, thank you very much indeed. Good to see you driving there.
Now if you are planning a getaway, how does a holiday to Honduras sound? Or maybe a vacation in Vietnam? Those are just two of the options on offer at the World Travel Market. Find out where else you could end up, in just a moment.
(COMMERCIAL BREAK)
FOSTER: Now whether it is fun in the sun or a spot of skiing, we all like to spend some money on a holiday. But how do we decide where to go? Well, tourism reps from around the globe are here in London, right now. The World Travel Market trying to get us to part with our money, and go to their part of the world. Ayesha Durgahee when down to take a look.
(BEGIN VIDEOTAPE)
AYESHA DURGAHEE, CNN INTERNATIONAL CORRESPONDENT: The world, under one roof, here at the Excel Center, in London. The central concourse is a gateway to destinations from the Middle East to Europe. Each country and city, poised to sell themselves, and fight for every tourist.
UNIDENTIFIED MALE: Yaah!
DURGAHEE: Even the well established are well represented.
GEORGE FERTITTA, CEO, NYC & COMPANY: New York City changes so much, every day, every month, every year. And this gives us an opportunity to bring everybody up to date, of all of what we have to offer, with all five boroughs.
DURGAHEE: New York has kept hotel occupancy buoyant, helped by an 18 percent decrease in room rates. The city which expects to have a record 47.5 million visitors by the end of the year, will also have money to invest thanks to the U.S. government's access tourist tax. A $14 entry fee imposed on travelers from some countries in September.
FERTITTA: We believe they are going to be raising at the rate of about $350,000 a day, to get up to $100 million over the next year. We are now just developing what our thoughts should be. We-I am the vice chairman in charge of marketing, of the board. We will be hiring a CEO, and then staffing up. So I really can't predict all of how that money is going to be spent.
DURGAHEE: There are some who are here to reinforce, others to rebuild. Greece's deputy tourism minister notes it is a lot harder now.
GEORGE NIKITIADIS, DEPUTY TOURISM MINISTER, GREECE: It is not an easy thing to promote you product, having no money. We are facing the economic crisis.
DURGAHEE: You have only been in this position for seven months?
NIKITIADIS: Yes.
DURGAHEE: When you started did you think, we have a lot of work to do.
NIKITIADIS: A lot of work, really. It is a lot of work, especially, because now we are changing everything. Actually, it is the first time, I feel that we are planning a serious strategy, a serious business plan that we want to follow. And this is the most important. Greece is changing, its tourism is changing. And I think we are in the right track to succeed.
DURGAHEE: Some countries are here to restore their status, having been overtaken by other destinations.
ALBERTO LIM, PHILIPPINE TOURISM MINISTER: We are trimming in 2009. We started off in the 1970s-1980 we hit 1 million already. And it has taken us 20 years to go to 3 million. So that is a very, very slow rate of growth. And I think it is because of the lack of access, that we did not grow as fast as our neighbors.
DURGAHEE: Over the decades the Philippines have gone from eight, to just one direct flight from outside Asia. It also faces the challenge of getting its national carrier off a black list, because of safety concerns.
LIM: We have been working with the audit teams of the European Commission, as well as the federal aviation authority, and it looks like we are making good progress. And we hope that by March, next year, that the blacklist will be lifted.
DURGAHEE: Whether it is to reinforce, rebuild, or restore. The aim is to make potential visitors see places from a local perspective, to express and entice the best way they can, with bells on. Ayesha Durgahee, CNN, London.
(END VIDEOTAPE)
FOSTER: Well, the Bolshoi Ballet is Moscow's premier tourist attractions, of course, but the renovation of its aging building has fallen years behind schedule. Matthew Chance wonders if the Bolshoi will ever get its groove back.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT It is painstaking work, but from top to bottom, Russia's most celebrated theater is in need of a spectacular overhaul. Each intricately carved wooden panel on the Bolshoi's elaborate balustrade takes skilled craftsman months to restore and embellish with goal leave .
Renovating the entire building has already taken five years and costs hundreds of millions of dollars. The project is not without its critics. There are complaints that the workmanship has been poor and that vast sums, meant for restoration, went missing under the original contractor. Complaints the new contractors say, have been addressed.
MIKHAIL SIDOROV, SUMMA CAPITAL (through translator): During the restoration of the Bolshoi, we are now using the best material, of the best quality. And even using, when needed, the original materials from the 19th century.
CHANCE (on camera): What about the issue of corruption, because the Russian prosecutor's office is investigating the fact that millions of dollars, that paid for the renovation of this place, has gone missing? Where is the money gone?
SIDOROV (through translator): A year ago our company entered the process of reconstruction of the Bolshoi. And, yes, there were speculations about possible embezzlement. But after we entered the project, there are no accusations of any kind.
CHANCE: Still it will be at least another year, before the Bolshoi is reopened. Behind schedule and over budget, yet perhaps better than ever before.
(On camera): But this is far more than just a renovation project. Here in the back, backstage area, which is six stories tall, the high tech, hydraulic system from Germany is being installed. It will power two huge rotating stages over here, allowing rapid and dramatic set changes during performances. The idea is not just to restore the Bolshoi, but to ensure it stays at the center of Russia's cultural life, for generations to come.
UNIDENTIFIED MALE: For every Russian this theater is sacred. The way in which we are carefully repairing every element in this building, with our hands, making sure it does not get altered or damaged in any way, shows the attitude of the Russian people towards it. Even the attention to the scandal shows that this theater is the pride of our country.
CHANCE: Matthew Chance, CNN, Moscow.
(END VIDEOTAPE)
FOSTER: Well, next we get to the glamour and the sunshine of Hollywood. Warner brothers has a new permanent studio, just outside of London, in fact. We'll speak to the CEO next.
(COMMERCIAL BREAK)
FOSTER: Welcome back. I'm Max Foster. You're watching QUEST MEANS BUSINESS.
Let's check some of the top stories making headlines this hour.
Investigators say one of the parcel bombs found in England last month was set to explode six hours after it was discovered. It most likely would have been over the Eastern U.S. at the time. The device was one of two found in printer cartridges shipped from Yemen.
At least three people has been killed in the latest assaults targeting Christians in Iraq and an interior ministry official says 25 others are wounded. The official says a string of bombs and mortar attacks targeted Christian homes in several Baghdad neighborhoods. It follows last month's deadly siege on a church.
US President Barack Obama reached out to Muslims in a speech at the University of Indonesia. The president told students at the U.S. -- the U.S., quote, "Is not and never will be at war with Islam." He said al Qaeda, not Islam, is the enemy. Mr. Obama then moved on to South Korea ahead of Thursday's G20 Summit.
Now, it's a first for a Hollywood film studio. Warner Brothers, part of CNN's parent company, Time Warner, has bought a permanent production site here in the U.K. This is what Leavesden Studios, just northwest of London, will look like after Warner Brothers' $160 million revamp.
The expansion will create 1,500 new jobs and allow the studio to host two major film shoots simultaneously. Leavesden has seen a flood of high profile films recently, including "Inception," "Batman," "The Dark Knight" and all eight Harry Potter films, in fact. Warner Brothers says it's responsible for 40 percent of the U.K.'s inward film investment over the past decade, some $3 billion.
CNN's Jim Boulden caught up with Warner Brothers' CEO, Barry Meyer, in London.
He asked him, why here?
(BEGIN VIDEOTAPE)
BARRY MEYER, WARNER BROTHERS CEO: We've been filming at Leavesden for 10 years. You know, we started with -- at Leavesden with the first Harry Potter film and we've shot all the Harry Potter films at Leavesden. We built Hogwarts at Leavesden.
But the interesting thing is it's not just Harry Potter that was shot there. I mean we've -- we've -- you know, some of our most successful films, some of our biggest films. Chris Nolan has shot there with "Batman Begins" and "The Dark Knight" and -- and, you know, we shot -- and the "Sherlock Holmes," which is the beginning of what we hope to be a new continuing franchise, was -- was -- was shooting there.
So we've done a lot of work at Leavesden.
JIM BOULDEN, CNN CORRESPONDENT: Will there be any change in the location and mix of how many films are done, say, in California, how many are done in London or does that not actually change even with you making this...
MEYER: Well, I -- I'm...
BOULDEN: -- decision?
MEYER: -- the -- the decision about buying the studio is not something, in and of itself, that will change that mix.
I will say this, we have an enormous amount of production that we've been doing in the U.K. for the last 10 years and especially in the last five years. We've -- I mean we love coming here. It's a wonderful place to film. It's very conducive. There's strong government support, which we all appreciate and I think has worked wonders for the -- the film industry in -- in the U.K.
BOULDEN: I thought some of these decisions were made on exchange rates so the -- you know, and the -- the dollar is now weakening.
So does that not play into it?
And doesn't that lock you...
MEYER: Well...
BOULDEN: -- into the pound?
MEYER: -- economics play a -- economics plays a very, very strong role in where we decide to -- to film, not just currency decisions and -- and, in fact, in our case, the currency decisions don't play a role in -- in making these decisions.
Making a film is a very, very long lead time process. It's very capital intensive and it has long lead times. We make decisions -- if we - - if we were making decisions just on currency fluctuation, we'd be speculators...
BOULDEN: Right.
MEYER: -- and I'm not sure that our shareholders or our board of directors would -- would really like that.
BOULDEN: And fans will be able to go to Leavesden and see some of the Harry Potter sets in this?
MEYER: Well, we're building an attraction -- a Harry Potter exhibit, really, at -- at -- at -- at Leavesden. It will be the only one, I think, in -- the only one in Europe. It's -- it's not a theme park. You know, there are no rides there. But it is -- it does have the advantage of being the place where the original sets were built, where all the Potter films were actually made. And the exhibit really is -- it -- it will be a one of a kind look at the art of the filmmaking.
BOULDEN: And when -- when you look at the end of -- we're coming to the end of Harry Potter. Obviously, two more films to be released, including one very, very soon.
MEYER: You had to remind me about that?
BOULDEN: Do you expect these two films to break the Harry Potter records?
And what does Warner Brothers do next?
MEYER: Well, we -- we say -- the Harry Potter films, all of them, have been remarkably successful. We think these last two, which is really the culmination, it's the last book in two parts and it's the culmination of the story. We hope, think and expect that they'll do very well. But I'm -- I'm not going to predict box office with you. That's -- that -- that's not something I, you know, I -- I normally do.
And it's been...
BOULDEN: But you must be thinking, you're hoping that...
MEYER: -- it's been...
BOULDEN: This is going to be the -- the culmination, not only of the books and the films, but of the...
MEYER: I'm...
BOULDEN: -- the revenue.
MEYER: Absolutely. I'm hoping that it -- it is a major hit and is as satisfying to our fans as it hopefully will be to Warner Brothers.
(END VIDEO TAPE)
FOSTER: And you can hear more of the stars from the movie, the young wizard and his nemesis, Lord Voldemort. Daniel Radcliffe and Ralph Fiennes are your Connectors of the Day today on CNN. Tune in to see them on "CONNECT THE WORLD," 21:00 GMT. They'll be speaking to Becky.
Now, a quick wall poster here, a photo comment there, admit it, we've all used our Facebook accounts, if we have them, at work a few times. But chatting online is a different matter when you're trash talking your boss.
Could a status update land you the sack?
Find out next.
(COMMERCIAL BREAK)
FOSTER: An ambulance worker in Connecticut who was sacked after she criticized her supervisor on Facebook could find herself at the center of a landmark case. People have run into trouble for letting off steam on Facebook before, but this time, the U.S. government has stepped in, it seems.
The National Labor Relations board argues that Dawnmarie Souza's comments were protected by law and her sacking was illegal. Her employers say her dismissal didn't have anything to do with Facebook.
Protecting what people say online is a legal gray area. In the U.K., the British Law Society warned that sacking people for their online comments could lead to unfair dismissal claims. And in Germany, the government drafted a law in August that would make it illegal for companies to read up on job applicants by friending them on social networking sites like Facebook.
So how much should your boss know about you from your Facebook page and could it get you into trouble?
Michael Woodward or Dr. Woody is, as he's known, is a career coach who knows all about social networking.
And he joins us now.
Thank you so much for joining us, Dr. Woody.
I mean this has been -- this was always going to build up into a legal sort of confrontation, wasn't it?
Which way do you think it's going to go?
DR. MICHAEL WOODWARD, ORGANIZATIONAL PSYCHOLOGIST: Well, first of all, it's good to be here, Max.
And I'll tell you something, you know, in my book, "The You Plane," I talked about this notion of personal accountability in social media. And right now, what I'm concerned about, in particular, when you look at this case of this woman in Connecticut, she got online and trashed her boss not only to her friends and followers, but also other colleagues who were following her on her Facebook page.
Now, the issue here is, is she is a classic example of someone who didn't realize their reach and the extent of the people that can actually hear what she's broadcasting out there.
And I think what's going to happen is that you're going to see companies who are really going to start getting really concerned about this, because, at the end of the day, Max, they've got a brand that they have protect. And if you're out there reaching out as someone who's part of that brand and a representative of that, but saying things that are counter to it, these companies are going to have real concerns.
Now, I'm not a lawyer, so I don't know which way legally this is going to go, but it's certainly going to be something that's going to be fought out, I think, for a long time.
FOSTER: You can see both sides, though, can't you, because the -- the employee, perhaps, has the right to have a conversation privately in a room or on Facebook. But, also, you know, it's pretty naive to think that they're -- it's private.
It's not private, is it?
Facebook, social networking is not private.
MICHAEL : And, Max, here's the interesting thing, right, because I heard someone use the analogy of the water cooler, right?
In the old days, you could have a conversation at the water cooler, you complained about your boss or you say some negative things. And at worst case scenario, someone may repeat that to somebody else, but it's -- it's hearsay.
When you do that online, when -- when Facebook or Twitter or -- or LinkedIn or any of these other mediums become the water cooler, what happens is, is the statement you make is posted and it's on record and it's there indefinitely. And it's actually a record of what you said and you don't have control of where that direct conversation goes.
It's one thing at the water cooler, for me to say something to you, then maybe it gets repeated and who knows what's accurate. But if I post something that's from me and that continues to get reposted, I think that's a real challenge.
And let's -- let's be realistic here, there are, what, over 500 million users of Facebook and Twitter maybe about a little over 100 million users. Once you post something, you don't know who else is going to repost that and then repost it and it becomes the public record. So that's what really concerns me, is I think we all have to take some personal accountability about what we're saying and understand that we don't necessarily have control of where it's going to go.
FOSTER: OK. Dr. Woody, thank you so much for joining us on the program today.
Interesting stuff.
Now, a series of storms has battered parts of Europe this week and it doesn't seem to be letting up just yet.
Pedram joins us from the Weather Center with more on that -- hi, Pedram.
PEDRAM JAVAHERI, CNN METEOROLOGIST: Hi, Max.
Yes, the storm systems that have been in place here across Europe really meaning business the last couple of days here. And a broad storm system right now in Southern France. And look at its trajectory, beginning to move a little farther to the east and going to produce a lot of rainfall and also gusty winds.
But really the primary concern is this next storm system in line. That one going to bring in a wind hazard, a lot of widespread wind events here expected over much of Western Europe the next couple of days as this storm comes in.
The rainfall, we think it will be light in nature to moderate, at best. The winds could gust as much as hurricane force there, up to 100 kilometers per hour from the U.K. into Ireland. So if you've got travel plans, keep that in mind. A lot of phone calls being made to carriers. Not a bad idea if you're flying into the U.K. and also flying into Ireland. You're going to get those winds, as the models here indicate, up to 90, perhaps 110 plus kilometers per hour in the next couple of days. And certainly the travel delays for Thursday, you can see them. It's going to be a bumpy ride up there -- 60 to 90 minutes around London, breezy conditions up and down the board into Dublin, Amsterdam, again, over an hour-and-a-half possible. And very little in the way of breaks when you work your way, say, toward Frankfurt. About 45 minutes to an hour or so, but light to moderate for the favorable areas and then heavy delays there for some of the unfavorable areas there around Western Europe.
In the forecast, temperatures Max, fairly cool. We're looking at 14 degrees. Glasgow will be a 10; Paris at 13; and Madrid 17. It looks nice, but with the breezy conditions and the gloomy skies, it's not going to feel too well out there in the next couple of days, so take care.
FOSTER: Pedram, thank you very much, indeed.
Well, tomorrow Richard is back and so is Q&A. In Q&A, you send the topics, Richard and Ali Velshi take them on. They fight it out, really. This week they are talking about gold. World Bank president, Robert Zoellick, says the world needs to go back to some sort of gold standard to guide currency movements.
But will that work?
Do send us your questions and then tune in to watch Ali and Richard battle it out. Just go to CNN.com/qmb. Ask anything you want, actually.
That is QUEST MEANS BUSINESS.
The program comes to you from Abu Dhabi tomorrow, so tune in for that.
"MARKETPLACE AFRICA," though, is next.
(COMMERCIAL BREAK)
ROBYN CURNOW, HOST: Hello and welcome to MARKETPLACE AFRICA.
I'm Robyn Curnow here in Braamfontein, Johannesburg.
Now, much has been said about Chinese, even Indian investment in Africa. But the Brazilians have also quietly been increasing their business here on the continent. Since 2003, for example, trade has quadrupled between Brazil and Africa.
So for our In Focus look this week, we're going to go to Mozambique, which is one of Brazil's trading partners.
(BEGIN VIDEOTAPE)
RAFAEL ROMO, SENIOR LATIN AMERICAN AFFAIRS EDITOR (voice-over): Across this bridge, workers make their way to the site of a future coal mine in the Tete region of Mozambique. The company that owns this open pit mine is based more than 8,000 kilometers away, in Brazil. And while it's nothing new to see foreign investors cashing in on Africa's natural resources, the push by Brazilian investors is really taking off. JOSE CAROLS MARTINS, EXECUTIVE DIRECTOR OF MARKETING, VALE: We are in the resources business, OK?
And if you are in the resources business, you have to be where the resources are.
ROMO: For the Vale mining company and several others in Brazil, that means Africa. Vale is the second largest mining company in the world and now their interest lies here in Western Mozambique, one of the largest untapped coal deposits in the Southern Hemisphere.
The company is investing over $1 billion to develop this mine, which could eventually yield 11 million tons of coal a year. That would put Mozambique in competition with its neighbor, South Africa, the largest coal exporter on the continent.
MARTINS: Our presence in Africa is growing. It's becoming a big part of our business. We are going to be one of the biggest mining companies in Africa. And we believe that we needed to grow in Africa.
ROMO: To ensure access to the resources, Vale is also putting millions more into Mozambique's infrastructure, including power lines and railroads. And it's not the only company from Brazil with an eye on Africa. Petrobras, a Brazilian government controlled energy company, and Odebrecht, Brazil's largest construction company, are also beginning operations on the continent. Brazil's big push to invest in Africa begins at the top, with President Luiz Ignacio Lula da Silva, whose eight years in office come to a close at the end of the year. As president, Lula took more trips to Africa than any other Brazilian leader before him, vowing to pay off the historical debt he says Brazil owes Africa from the slave trade.
AMB. ADALNIO SENNA GANEM, CONSUL GENERAL OF BRAZIL: We have very strong relations with African countries. We try to develop the corporations in all terms.
ROMO: But back in Mozambique, some are worried the risks will eventually outweigh the benefits. Vale had to relocate an entire village to expand the mine. And one of the biggest concerns is the environmental impact of quickly depleting the country's resources, according to independent journalist, Fernando de Lima.
FERNANDO DE LIMA, CEO, MEDIACORP SA: We need to determine how much should be explored and how much should be retained for future generations. So it's not up to us to allow for grab all these huge quantities of coal and then the next generations has nothing to gen -- to negotiate, to sell or to generate benefits for a -- for the next generations.
ROMO: To address that concern, Vale points to the countryside it says it's preserving around its mines. And when the village was relocated, Vale and local authorities built a new school, hospital and community center.
MARTINS: Besides being interested in exploring natural resources and making profits from it, we also have this duty, which is to improve that area, to bring -- to help to create the stability, because the poverty is not a good condition to bring stability. So if you bring more development, the stability will come. One thing will help the other. And maybe 10, 20 years from now, we can talk about a different Africa.
ROMO: A different Africa, rich with investors, but one where the people can also benefit. The hope among so many is that it can be achieved.
Rafael Romo, CNN.
(END VIDEO TAPE)
CURNOW: OK, let's take a look at Brazil's trade with Africa by the numbers. Now, since 2003, when Lula de Silva took office, trade has increased from $6 billion to $25 billion. Exports also have increased quite significantly, up, on average, about 28 percent. Imports up, on average, about 23 percent a year.
Now, also, Africa is one of Brazil's biggest trading partners after the U.S., China and Argentina.
Now, coming up after the break, we're going to speak to a man who's trying to change the face of health care here in Africa.
(BEGIN VIDEO CLIP)
ERNEST DARKOH, CEO, BROADREACH HEALTHCARE: We have to accept the fact that that there will be gaps that likely won't fill in our lifetime, but we can fill those gaps through innovation.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
CURNOW: Hello and welcome back to MARKETPLACE AFRICA.
Now, our guest on Face Time this week is Dr. Ernest Darkoh.
He helped to develop one of the largest public sector HIV/AIDS treatment programs in the whole of Africa, the Masa Initiative in Botswana.
He's now founding partner and chairman of Broadreach Healthcare.
And he sat down with CNN for a rather revealing insight into health care in Africa.
(BEGIN VIDEOTAPE)
CURNOW: In 2001, you were working for McKinsey (ph) when the Botswanan government brought McKinsey in to develop its AIDS treatment program.
DARKOH: Yes.
CURNOW: What was your approach?
I mean what were you thinking when they said, we want you to develop this, because it had never been done before?
DARKOH: Well, actually, the day that I was told to actually run the program, I remember getting on my knees and saying, please, God, help me. I don't know what to do.
It really was one of the biggest, I think, public experiments, you know, of -- of our times. We didn't realize it, of course, at the time, when we -- we embarked on trying to do this.
In essence, the country of Botswana, in the year 2000, had just absorbed the results of its surveillance data that, at that time, showed 38.5 percent of adults were HIV infected. This has become a, really, an unprecedented partnership. And the Gates Foundation and Merck both were partner -- partnered on this, contributed about $100 million and Merck donated its drugs for free to the initiative.
But bringing in groups like McKinsey, who are cutting edge problem- solvers on a global scale, to work with the public sector in Botswana, was quite revolutionary in many ways.
And so having this team together enabled us to tape into the best skill sets in the world, in essence, to come up with a model that would work for Botswana. And that program, therefore, was implemented, ultimately. It got off the ground in a three year period, rolled across the country, in a five year period, was literally had more or less stopped most of the deaths from -- from HIV in the country.
CURNOW: So how did Broadreach, then, come into being?
DARKOH: Broadreach came into being -- we largely had observations on the ground and, frankly, with the encouragement of groups like Merck and Gates and the country of Botswana, when they encouraged me to start the company, ultimately, based on the experience we had.
So with that experience, these countries began to turn to Botswana to ask, how did you do it?
And in that context, therefore, I was encouraged to start a company that could begin to help these other countries look at implementing similar solutions and how do you -- especially in a low resource environment?
CURNOW: You've continued to incorporate new business models into the way you're handling this?
DARKOH: Oh, absolutely. I mean we have formed innovative partnerships with cell phone companies, you know, distribution companies like DHL, who will not, maybe, go into certain areas of a country, but we know for creating a deal with them whereby, like in Botswana, they would actually agree to transport laboratory samples and, in essence, opening a new market for them, but meeting a public need for a supply system that would actually move laboratory samples back and forth to the central laboratories.
And I think from -- that, really, is one of the -- the -- the approaches we need to think about more carefully, and particularly in continents like Africa, where we will never have enough resources according to the conventions of the West. Even if we did have those resources, they're certainly not going to come back to Africa and live in rural areas, you know.
So we have to accept the fact that there will be gaps that likely won't fill in our lifetime, but we can fill those gaps through innovation. But you have to have a lot of courage and you have to have the leaders in the country be willing to invest in doing things differently and having, frankly, the guts to do things differently.
And once you're willing to do that, what you can accomplish is -- is - - is beyond what most people can imagine.
(END VIDEO TAPE)
CURNOW: Dr. Darkoh there working to change the face of health care in Africa.
Now, he's what's trending this week.
(BEGIN VIDEOTAPE)
CURNOW (voice-over): Kenya Airways, their strong sales in the first half have helped profits surge 63 percent from last year. Analysts say it's another sign that airlines are returning to profitability following the global recession's dampening effect on travel demand. Kenya Airways plans to use some of its earnings to expand its fleet. It's already ordered nine new Boeing 787s due to be delivered in 2013.
And Tanzania's central bank says it may revive plans to sell as much as $500 million of Eurobonds next year. The global economic crisis shelved the project for the past two years. The bonds would fund infrastructure projects ranging from the installation of fiber optic cables to road building, increased power generation and the expansion of Dar es Salaam's main port.
Well, that's it for this week's show.
I'm Robyn Curnow here in Johannesburg.
If you want to follow me on Twitter or e-mail us, please do go to our Web site, which is CNN.com/marketplaceafrica.
But for now, good-bye.
END
