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Quest Means Business
Obama Climate Action Plan; Edward Snowden Saga; Prayers for Mandela; Stock Market Rebound; Stocks Struggle On; King's Speech; Dollar Stronger; Qatar's New Leader; Mandela Update
Aired June 25, 2013 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, HOST: Tonight, President Obama takes on King Cole in his fight against climate change whilst stocks are swinging higher. As China soothes concern over credit, the markets are up.
Also on the program, Mervyn King, the outgoing governor of the Bank of England, makes his final session as head of the bank before parliament, and the parting shots from the soon-to-be ex-governor.
All in all, a busy hour ahead. I'm Richard Quest, in New York, and I mean business.
Good evening from New York. President Barack Obama is unveiling the most ambitious climate change plan ever devised by a US president.
Speaking to students at Georgetown University in Washington, the president announced a set of executive measures, which will include new limits on carbon emissions from power plans, stronger bilateral ties with countries like China and India as part of a global climate strategy, and recommendations that the Keystone Pipeline project should only be approved if it does not lead to a net increase in overall greenhouse gas emissions. The president said it was time to act.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: So the question now is whether we will have the courage to act before it's too late. And how we answer will have a profound impact on the world that we leave behind not just to you, but to your children and to your grandchildren.
As a president, as a father, and as an American, I'm here to say we need to act.
(APPLAUSE)
(END VIDEO CLIP)
QUEST: The president is still giving his speech at the moment at that university. Jim Acosta is in Washington. What is the -- I suppose we've got to look at this in two ways, Jim. We have to look at it as the environmental significance and the political significance at this time. Which do think --
JIM ACOSTA, CNN US POLITICAL CORRESPONDENT: That's right.
QUEST: -- are more important?
ACOSTA: Well, I have to tell you, Richard, we were not anticipating any news on the Keystone Pipeline heading into this speech.
This was a fairly dramatic headline that was dropped on the press right when the president was basically heading out to Georgetown University to deliver these remarks, to go out and state that the Keystone Pipeline should only be approved only if there are no net increases in greenhouse gas emissions.
That's a fairly significant development, because he's been hearing it from both sides, environmentalists who have wanted to see that project struck down and conservatives who want it approved right away because they say it will create jobs here in the United States and across North America.
And so, the president is trying to thread the needle here and take sort of a middle road approach on that project, keeping it alive, but at the same time, bowing to the conserves -- the concerns of environmentalists.
At the same time, Richard, this -- and you're getting to the political side of this thing you just mentioned -- this is sort of an acknowledgment that up on Capitol Hill, he has a very full plate right now, and really, it has no position, now leverage at this point, to push through a whole battery of new climate change legislation.
So, what he's doing here, and you laid it out just a few moments ago, he's doing what he can do administratively through his executive powers as president. He is asking that environmental regulations be tightened on power plants, he's calling for new fuel standards for trucks in the United States.
He is also -- and this is also of some interest, I think, to our viewers around the world who have been following the developments of Hurricane Sandy that hit New Jersey, they're going to be testing out new projects to prepare coastal communities --
QUEST: All right.
ACOSTA: -- for the effects of climate change, and that is something, I think, interesting to hear from a president.
QUEST: Jim, I want to take you in a slightly different direction, forgive me, if you will. Edward Snowden and the whole row over what is happening. More and more -- China is now criticizing the United States, the Russian president has criticized the United States.
Where is the -- where's the White House feeling on this? They obviously are aware that allies and other countries are starting to say this is your mess, don't blame us.
ACOSTA: Right. They are well aware of that. And keep in mind, Richard, that the president has met with the leaders of both China and Russia in the last few weeks, and he's not getting a whole lot of cooperation from those leaders. So, you can read into that what you wish.
But I can tell you, Richard -- and you know the news that came out of Russia earlier today where the president, Vladimir Putin, speaking at an international news conference, said that basically Russia has no plans to extradite Edward Snowden, that he is in a sort of international transit area of the airport in Moscow --
QUEST: Right.
ACOSTA: That's as far as he knows. Now, there is some reaction from the administration at this point here at the White House. They are saying that they view that as potentially a positive development --
QUEST: Right, but --
ACOSTA: -- and I suppose that's because Edward Snowden has not made his way into Moscow and is not in the hands of Russian authorities or has not - -
QUEST: All right.
ACOSTA: -- escaped entirely in Moscow.
QUEST: Right, but let me just ask, does the White House feel slightly badly done by, that none of these other countries -- in fact, far from helping them, these other countries are all saying a plague on your own house. This is a mess that you've made, you live with it.
ACOSTA: That certainly is a message I'm sure they're hearing from the international -- from a lot of people across the international community. Of course, they're not hearing it from their stronger allies around the world, like the United Kingdom, which sent out those signals that Edward Snowden should not be flying in -- onto British soil.
But at the same time, yes, you're right. Now, John Kerry, the secretary of state, did come out earlier today --
QUEST: Right.
ACOSTA: -- Richard, and he said, now listen, they've been -- the United States has been cooperating with Russia with --
QUEST: Right.
ACOSTA: -- when it comes to people that they would like to see returned. They're essentially asking the Russians to do the same in return. And so, I think that there is a potential for harm to relations not only with Russia, but also with China if Mr. Snowden is not returned to US custody or at least put in a position where he can land in US custody in fairly short order.
QUEST: Jim Acosta at the White House, thank you for that. The president is still speaking. He's now talking about the project, the Keystone project. Let's just listen in.
OBAMA: -- strengthen our position as the top natural gas producer because in the medium term, at least, it not only can provide safe, cheap power, but it can also help reduce our carbon emissions.
Federally-supported technology has helped our businesses drill more effectively and extract more gas, and I will keep working with the industry to make drilling safer and cleaner, to make sure that we're not seeing methane emissions, and to put people to work.
QUEST: President Obama talking there about the climate policies that he is now introducing.
It's been a volatile week on Wall Street, another central bank is trying to calm investors' nerves, and we'll hear from Mohamed El-Erian what he makes of it on the West Coast at PIMCO. QUEST MEANS BUSINESS, live in New York.
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(COMMERCIAL BREAK)
QUEST: Dozens of South Africans are now keeping vigil outside the hospital where the critically-ill Nelson Mandela is being treated. There's been no change in his condition since the 94-year-old's health took a turn for the worse at the weekend.
The former South African president has been receiving treatment for a recurring lung infection since early June. Earlier, police cars arrived at the hospital and officers blocked the side streets around the hospital.
In Pretoria, now, is our correspondent, Nkepile Mabuse, who joins me now. Nkepile, the situation this evening, obviously, Mr. Mandela remains gravely ill, if one wants to put it like that, and we are now waiting further news.
NKEPILE MABUSE, CNN INTERNATIONAL CORRESPONDENT: Richard, there's absolutely no question that this nation is now on edge. We're going into the third night since the president's office announced that Nelson Mandela is critically ill in this hospital behind me. Yesterday, on Monday, and today, the presidency reiterating that Nelson Mandela's condition has not changed.
But there's been a lot of movement on other fronts. We saw a significant family meeting in Qunu, that's in the Eastern Cape, where Nelson Mandela was based until he was brought here up to Johannesburg when he fell ill in December. It is still very unclear why the family was meeting in Qunu, but as you can imagine, there's a lot of speculation around the reasons why.
We've also seen more people outside of the family unit come to this hospital, Richard, to pay Mr. Mandela a visit. We saw the defense minister come here, we saw the Archbishop of Capetown. But still, South Africans waiting to hear an update on what exactly is going on in this hospital behind me, Richard.
QUEST: And it all sounds -- apologies to our viewers who may be having difficulty hearing. There is obviously noise behind you. Ordinary South Africans who revered and looked up to Nelson Mandela, and this -- this issue, this dichotomy, if you like, between a 94-year-old man who's been out of office for many years but is still seen as being the father of the modern nation of South Africa.
MABUSE: Exactly. And in a lot of ways, Richard, South Africans have been very lucky that Nelson Mandela had such a long life. Of course he's had a list of ailments. He's been in and out of hospital four times since December.
And in a way, that sort of helped South Africans to start to come to terms with his mortality. Because for many, many years, people just did not want to face the possibility of having a day that there will be no Nelson Mandela in this country.
But you're now starting to hear people start talking -- worrying about how much work is being done back there? Is he in pain in this hospital? People see a man who sacrificed the majority of his life fighting for this nation, and they certainly don't want to see him struggle any longer, Richard.
QUEST: Nkepile Mabuse, who is in Pretoria. And of course, CNN's team of correspondents, producers will, of course, remain on the story around the clock as it develops.
Stock markets are dusting themselves off. It was a bruising session on Monday, if you were with us last night from the New York Stock Exchange. Now, China's central banks attempted to calm nerves in the Shanghai market. The -- if you look at the markets at the moment --
(RINGS BELL)
QUEST: -- the Dow is up just over a half a percent. NASDAQ is also up, the S&P 500 -- it's economic data, housing prices, posted their biggest annual jump in some seven years, more than 12 percent. So that was a really very strong session.
And it spilled over into Europe with excellent gains being seen in Germany, the Xetra DAX up 1.5 and similar gains in London and Paris.
In China, the People's Bank has moved to reassure Chinese leaders, and the bank said it would step in to provide cash for banks, which are struggling to borrow. The Composite avoided a second straight day of very nasty losses, but it still was just off a tad. The Nikkei was down three quarters of a percent.
And what's interesting about the Shanghai Composite, it has been six percent lower at one stage, but that has now sort of reversed itself and the mood has changed.
The People's Bank of China's statement said the central bank will offer liquidity support to banks that face temporary shortages. It was those words that managed to pour the salve and salvation that the markets were seeking.
Mohamed El-Erian says the markets have too much faith in the power of central bankers today. I spoke to the chief exec of PIMCO a short while ago and asked him, factor in China, and whether the fears of what was happening there were keeping him awake.
(BEGIN VIDEOTAPE)
MOHAMED EL-ERIAN, CEO, PIMCO: So, there's two concerns. One is there are pockets of excess, including in the banking system, and it's not clear how that is resolved. And then, the second, and I think more consequential concern, is China able to grow at 7 percent?
On the first issue, I think that that is something they can handle. They have an enormous balance sheet, and they're trying to strike the balance between bailing out the banking system and imposing discipline on it, and that's a really hard balance to strike, as we found out.
QUEST: Right.
EL-ERIAN: The second issue is more tricky, Richard. And I think on the whole, they'll be able to grow at around 7 percent, but it's not going to be as easy as the past was.
QUEST: Right. So, if we end up in this situation where the principle engine of growth -- or at least the white hope, China is slowing down and has liquidity issues, and the United States has got tapering issues, and Europe is in recession. As we go into the summer, there doesn't seem to be huge grounds for optimism.
EL-ERIAN: So, I would add a fourth one that's important, which is countries like Brazil are finding it very difficult to have coherent policies in what is a very complicated world.
So, yes, as you look forward, you've got to worry not just about growth, but growth engines, the fact that the system isn't producing the sorts of dynamics that you would expect. So, this is going to be a tricky summer, both an account of the fundamentals and account of the policies.
QUEST: The markets' reaction to the prospect of tapering makes no sense. Because obviously, tapering of bond purchases would only come about when the economy is growing. So, are we seeing a market that is still just bellicose in its dislike of uncertainty?
EL-ERIAN: So, I sense that you're seeing a few things. What you're seeing is a market that believed too much in the power of central banks. They believed that the central banks can produce anything, and if they don't, they will always have been there as their best friends.
And now, whether it's Japan, where there's a question about the effectiveness of central banks, or whether it's the United States, where it's a question about the willingness of central banks to support markets, this incredible trust and faith in the power of central banks is being put under pressure.
And to tell you the truth, we have been stunned at how many investors were simply trusting the central banks for all their investments, and I think there's a bit of reality coming in, and that over the long term is a good thing, Richard.
QUEST: Yes, but you see, it's not surprising, because the central banks by default took the responsibilities because the governments and certainly fiscal policy didn't seem to do it. So, ultimately, I can't decide here, Mohamed, finally, are the central bankers their own worst enemy for doing it, or our best friend because they did? Which is it?
EL-ERIAN: So, they're both. Had they not gotten involved --
(LAUGHTER)
EL-ERIAN: -- we would've had a global depression. But importantly, they lost sight that they are a necessary condition but not sufficient. Or put in other words, they are building bridges, but they can't deliver a destination.
For that, they need the politicians to collaborate. And unfortunately, the politicians decided you know what? Let the central banks do all the heavy lifting. And now, we're in a position where central banks can no longer do the heavy lifting. So, it's going to be a volatile time going forward.
(END VIDEOTAPE)
QUEST: Mohamed El-Erian of PIMCO over on the West Coast.
The outgoing governor of the Bank of England, Sir Mervyn King, has made his final appearance before the UK parliament's Treasury Select committee. The governor retires at the end of this week.
He used his last address to take a swipe at banks for using the press to lobby against increased regulation. Mervyn King said banks shouldn't conduct conversations with financial supervisors through the front pages of the "Financial Times" or any other newspaper.
He also spoke of the UK's economy, saying there's a recovery but, quote, "my view is it's not sufficiently rapid enough." And on who may feature on the next ten pound note, which there's been much debate and discussion whether Winston Churchill or anybody else, he said the 19th century English novelist Jane Austin is quietly waiting in the wings.
Which brings us to tonight's Currency Conundrum. There have been only two women who have graced the back of British bank notes. So, of this list, which of these women has not had the honor? Florence Nightingale, Elizabeth Fry, or Emmeline Pankhurst? Which of those has never been on an English or British bank note.
And to the rates. The dollar's stronger against the pound, the euro, and the yen. Those are the rates --
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QUEST: -- this is the break.
(COMMERCIAL BREAK)
QUEST: Power has begun to shift in the Gulf state of Qatar with a leadership transition which will create the youngest ruler in the Arab world. The 61-year-old Sheik Hamad bin Khalifa al-Thani announced his abdication on television. His 33-year-old son will take over.
It's a first because Arab rulers typically hold onto power until death or until being deposed. Jomana Karadsheh takes a look now at the country that the crown prince is going to inherit.
(BEGIN VIDEOTAPE)
JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT (voice-over): From one of the poorest countries in the Arabian Gulf to one of the world's richest, over the past two decades, Qatar has undergone a transformation that turned this tiny nation of less than 2 million people into an Arab powerhouse.
Much of Qatar's influence stemming from its staggering economic growth. The young country, independent for less than half a century, was nearly bankrupt in the early 1990s. Then came the economic and political strategies of this man, Sheik Hamad bin Khalifa al-Thani, credited with turning the tide.
With the world's third-largest proven natural gas reserves, the monarch, who took over from his father in a 1995 bloodless coup, focused on developing the liquid natural gas industry, an output that continues to grow along with a booming economy, reaching far beyond its borders.
Qatar's international investments in recent years include some high-profile deals in the United Kingdom with the more $2 billion purchase of the luxury retailer Harrods and a stake in the London Stock Exchange and Barclay's bank.
But it was the Qatar that emerged in 2011 that surprised many around the world. Historically, Qatar played more of an impartial diplomatic role, mediating between various factions in places like the Palestinian territories, Lebanon, Yemen, and Darfur.
But with the start of the Arab Spring, Qatar placed itself at the forefront of regional change, supporting opposition movements in their uprisings against fellow Arab regimes.
In Libya, Qatar played a pivotal role in the overthrow of Muammar Gaddafi by providing financial, military, and logistical support to rebel groups. And over the past two years, it has done almost the same in Syria, as one of the main backers of the opposition.
Qatar's determination to make history in the Arab world does not stop here. In 2022, Qatar is set to be the first Arab country to host the football World Cup. Until then, the world will be watching to see what direction this small yet powerful state will take under its new leadership.
Jomana Karadsheh, CNN, Abu Dhabi.
(END VIDEOTAPE)
QUEST: I always joke that when you're in Qatar and Doha, be careful if you light a cigarette. There's so much natural gas, you can probably blow yourself up on the way.
Coming up on QUEST MEANS BUSINESS live from New York, the extraordinary tale of an American businessman who claims his own staff won't let him go home. I'll also have the headlines after the break. QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There is more QUEST MEANS BUSINESS in just a moment. This is CNN, and on this network, the news always comes first.
And with the hour moving late, we want to, of course, bring you up to date on the condition of critically-ill Nelson Mandela, if you're just joining us in your evening. Nkepile Mabuse is outside the hospital in Pretoria, where the former South African president is being treated.
And we're hearing so many reports, of course, of people arriving, people leaving, who's there and who's not. What's the position?
MABUSE: This is another anxious night, Richard, for South Africans. This is the third -- we're going into the third night since the presidency announced that Nelson Mandela is critically ill in this hospital behind me. And on Monday and today, the presidency saying his condition has not changed.
We do expect that if Mr. Mandela does pass on, the president of the country, President Jacob Zuma, will address the nation. I spoke to presidential spokesperson Mac Maharaj to just try and find out if we are going to be getting any updates later today, and he said no. He will have no updates for us.
So, the whole country is anxious, holding its collective breath, waiting to hear news of their beloved international icon, Richard.
QUEST: Nkepile, is it -- how would you describe the mood? What I suppose, obviously it's somber as people are waiting outside. But is there a mawkish element to it, or is there a celebration of life element?
MABUSE: It's been described as somber resignation. For a long time, Richard, South Africans did not even discuss Nelson Mandela's mortality. But now, you get a sense that people have accepted, that he's 94 years old, he's due to turn 95 next month, he has been in and out of hospital four times since December.
And what many South Africans are worrying about is is he in pain? Is he suffering? Because obviously, they don't want a man that they so admire, a man who was so full of life, there's just that image of him struggling in an intensive care unit, it's just too daunting for many South Africans.
But you've seen ordinary people come here, leave messages, leave flowers. One of the messages read, "I am who I am today because of you." He is called the father of the nation because people really do believe that he is -- he fathered the new democratic South Africa.
So, people here extremely worried, but I think in the past few weeks, past few months, we've seen South Africans actually start to let go of their beloved international icon and just expressing gratitude that he sacrificed so much and he lived so long, Richard.
QUEST: Nkepile Mabuse, who will be outside the hospital and along with other CNN reporters and correspondents in the hours ahead as we continue to watch the events there.
And, please, Nkepile, the moment there is more to report, do come back to us immediately. Thank you.
President Barack Obama says the State Department should approve the controversial Keystone pipeline project only if it will not lead to a net increase in overall greenhouse gas emissions. The president has just laid out his climate change policy at Georgetown University in Washington, D.C.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The question now is whether we will have the courage to act before it's too late. And how we answer will have a profound impact on the world that we leave behind, not just to you, but to your children and to your grandchildren. As a president, as a father and as an American, I'm here to say we need to act.
(APPLAUSE)
QUEST (voice-over): Afghan police have stopped a group of Taliban gunmen who attacked the presidential palace in the heart of Kabul. The gunmen used fake NATO identification to enter the palace grounds. Guards became suspicious and stopped one of their vehicles. A fight broke out and all the gunmen were killed. Three guards also died in the attack.
The United Nations says the U.S. Secretary of State John Kerry and the Russian foreign minister Sergey Lavrov will meet to discuss the conflict in Syria next week. Earlier, U.N. envoys said a conference probably wouldn't take place next month as planned. Russia's deputy foreign minister confirmed that no date has been set.
The White House says there is a clear legal basis, in their words, to expel Snowden from Russia. Snowden, who's been leaking surveillance secrets, is currently in the international transit area of the airport in Moscow. Russia's Vladimir Putin has said Snowden is free to go. The U.S. wants him handed over.
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(END VIDEO CLIP)
QUEST: There are strikes, there are lock-ins and then there's the very strange business of what's happening in a run-of-the-mill pay dispute in China, which has taken an extraordinary twist. A factory boss is claiming his own workers are preventing him from leaving the factory. He said he's been stuck there for four days.
Our correspondent, David McKenzie, paid him a visit.
(BEGIN VIDEOTAPE)
DAVID MCKENZIE, CNN CORRESPONDENT (voice-over): American executive Chip Starnes puts on a brave face, but he's being held captive in his own medical supply factory in China.
MCKENZIE: So are you being held hostage now?
CHIP STARNES, SPECIALITY MEDICAL SUPPLIES CHINA: The answer is yes, 30 or 40 of them ransacked my office, come in there for three hours, standing there on my desk, just staring at me.
One o'clock in the morning, my GM and I finally got them out, laid down for the next two hours. It was banging on the doors, windows and lights and stuff. And so I had a lot of sleep deprivation the first 48 hours.
MCKENZIE (voice-over): His family back home in Florida say they're in constant contact, worried sick, saying Starnes has a medical condition. He says he just wants to leave. But they won't let him.
MCKENZIE: And so if you were to try and leave now, you couldn't leave.
STARNES: I -- it would be interesting to try. That simply crossed my mind.
MCKENZIE (voice-over): In a bizarre twist, we're led in to view the factory. Starnes says he's been investing in China for more than a decade. He wants to move some manufacturing to Mumbai, India.
MCKENZIE: You and I are talking here, and you still being held hostage, it's kind of surreal.
STARNES: It is kind of surreal. In fact, I don't think I've been back here in three days or so. So, yes, it actually -- the whole thing saddens me greatly.
MCKENZIE (voice-over): Now he's meeting with workers, trying to negotiate his way out of the factory.
STARNES: This is not how to accomplish something. You know, I'm at the point now, you know, we're at a standstill. I deserve the right to go back to my hotel room and I deserve to come back when we can address things professionally.
MCKENZIE (voice-over): The workers say they're owed two months' back pay and told us Starnes isn't a hostage. But he can't leave -- David McKenzie, CNN, Beijing.
(END VIDEOTAPE)
QUEST: Still on tonight's program, they are young, educated and they are unemployed. These British graduates are finding that even a degree won't guarantee you a job. Our series highlighting Europe's lost generation is after the break.
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(COMMERCIAL BREAK)
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(BEGIN VIDEO CLIP)
QUEST (voice-over): The answer to tonight's "Currency Conundrum," I asked you which of these women has not graced the back of a British banknote? And the answer is, yes, Emily Pankhurst. Florence Nightingale featured on the 10-pound note until 1994; the social reformer Elizabeth Fry is currently on the 5-pound note and she'll be replaced by Winston Churchill in 2016.
And Queen Elizabeth, obviously, is on every note, on the front of every note. But Emily Pankhurst, the suffragette for women's votes, she has never appeared on a banknote.
(END VIDEO CLIP)
QUEST: On Thursday, E.U. leaders will discuss how to deploy almost $8 billion against the scourge of youth unemployment. The plan is to offer a safety net for the millions of young people without jobs in Europe. If the plan gets approval, it'll guarantee a place in work, training or an apprenticeship within four months of becoming unemployed.
This week we're looking at the problem of youth unemployment and as Isa Soares reports from London, the lost generation a degree doesn't guarantee a job.
(BEGIN VIDEOTAPE)
ISA SOARES, CNN CORRESPONDENT (voice-over): The students are queueing up for a new start. It's open day at this university. Free of burden of commitment, they are the next generation of workers, still finding their way.
UNIDENTIFIED FEMALE: I've never been to a university before and I've never -- I don't know even know what I really want to do yet. But I'm excited and I've nervous at the same time.
SOARES: For these 18-year olds queueing here, this is all about making the right decision, am I going to the right university, taking the right course, spending too much money? While this may seem trivial given the current economic crisis and the crisis their generation is facing, today (inaudible).
SOARES (voice-over): The writing on the wall really tells the tale: youth unemployment here in the U.K. has recently topped 1 million. The unemployment rate stands at just 8 percent, but for young people, that number tops 20 percent.
UNIDENTIFIED FEMALE: I think also because degrees cost so much.
SOARES (voice-over): These are some of the faces behind those numbers. They will graduate in less than a month. But already their worries are palpable.
SOARES: How many of you have unpaid internships or a full-time job?
SULTANA NAHAR, UNIVERSITY STUDENT: I have a job but it's not to do much with my degree. It's more -- it's along the lines of my degree.
SOARES: So it's unrelated?
NAHAR: It is sort of unrelated (inaudible). No, it's unpaid.
SOARES (voice-over): Out of the six of them, only one has a job lined up. Closely some of them feel hard done by.
AHMED GORA, UNIVERSITY STUDENT: You don't really get told that, you know, it's difficult to get a job; you're kind of told you qualify and you're in the best position to kind of get a job.
SOARES (voice-over): Some are even disheartened.
PHILLI WOOD, UNIVERSITY STUDENT: Well, I think it frustrating that you can do four years, studying really hard for four years and you'll come out of it and I have to think of a second job to be able to live in London.
SOARES (voice-over): The rest are just realistic. They know the hard work is only just beginning.
WOOD: So many people are graduated but there's not enough jobs out there. I think you need a lot of experience and competition seems to be so high these days. I think that's one of my worries.
SOARES (voice-over): Just one of the many, no doubt, that will keep this generation awake at night -- Isa Soares, CNN, London.
(END VIDEOTAPE)
QUEST (voice-over): All this week, we are highlighting the struggles of what's known as the lost generation. And tomorrow's program we'll go to Paris and we'll follow the story of the French graduate. After 40 applications and over six months, she's just found a job.
That's on QUEST MEANS BUSINESS, "The Lost Generation."
Now stonking hot, that's the verdict here in New York.
Jenny Harrison is at the World Weather Center.
In old money, Jenny, I think it must be about 92 today in old money.
JENNY HARRISON, CNN METEOROLOGIST: You're a bit wrong. You know, yes, it's actually not far off. It's 32 Celsius in new money. We're not going to deal with this old money. You've got to get modern. You've got to get up to date with the times.
QUEST: No, no, no, no. When it's hot, I like it to feel hot in the number, that's up in the 90s.
HARRISON: Well, it's 32 Celsius. It's 18 Celsius back in London. They've had a pretty good day back there. And that's actually because there's a bit of a change, Richard, in Europe. We've got high pressure building in finally to the west.
We've actually got the worst weather across these central areas of Europe. That's where the low pressure is situated right now. The last few hours, quite a little rain across Germany. And then we've got high pressure to the east. So it's kind of blocking that system. So I'm afraid that's where we're seeing the bulk of the rain.
But look at this on Monday. We actually saw in just three hours 110 millimeters of rain to Rimini in Italy and in eight hours in Poland, 84 millimeters was also recorded. So you can see, as I say, where the bulk of the weather is.
So I've got a high pressure across the east, high building in across the west and then we've got the cool, wet weather across these central areas, that rain beginning to push up towards Scandinavia as well over the next couple of days.
But with that dividing line, with the cold air or the cooler air and the hotter air across the east, we've got some warnings in place, not some really, really severe weather, but we could have some thunderstorms producing that large hail, strong winds and also the threat of those tornadoes.
So this just shows you the temperature trend over the next couple of days. There's that cooler weather. But as I say, beginning to improve certainly across the west and the southwest. So three cities have a look at, Kiev, Sofia and Moscow. And in fact, Moscow, the average is 22.
And as you can see here, by Friday, we should be seeing 31 as your high temperature there. And in fact, getting to 31 in Kiev by Thursday as well, the average is 24. So you get the general idea. So the rain continuing across these central areas, can't rule out one or two showers across the west, but generally it is a much better picture.
One or two airport delays just to alert you to, overnight Wednesday into Thursday, Munich some fairly heavy rain because of that system of low pressure and quite a bit of low cloud as well, despite that high building into the northwest, so London, Heathrow, Glasgow as well, for the temperatures beginning to back up.
Look at that, 22 in London, 21 in Paris, but just 16 Celsius in Vienna. So what does it mean for Wimbledon over the next few days? Pretty good, nice temperatures. We could just see some rain on Friday but overall not a bad first week at all for the start of the championship.
But there was a year, one in particular, the haughtiest championship -- the hottest year, the hottest championship an average daily maximum temperature 30.8 degrees Celsius in new money, of course, for our Mr. Quest.
So Richard, which year do you think that might have been, the hottest championship ever, given it's been going for 135 championships.
QUEST: I would say 1976.
HARRISON: Oh, I just knew you were going to say that. I knew you were going to get it. You got it right. Look, 1976. You see it was --
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QUEST: Well, I lived through -- I lived -- I lived through that summer. It was the summer of droughts. I had tomato plants that were wilting in the greenhouse. We had to water them three times a day. And when I was riding me bike, it was nearly -- I nearly had a heart attack.
HARRISON: Yes, well, I know, but as I say, Wimbledon dates back to 1877. It could have happened, you know, a little bit earlier than 1976. So you might not have got it. But you happened to be right. Oh, dear, I'm making them too easy. I've got to find some harder one.
QUEST: Yes.
Yes, what gussets did they wear in 1926 or something?
Right. Thank you, Jenny Harrison. She's -- I've ruined her day by winning that, by getting that right. She's going to go and sulk.
Right. Coming up after the break on QUEST MEANS BUSINESS, we're going to take a final check. The markets are open and doing business in New York, oh, look at that, gained 117 points for the Dow Jones, 14,777, all the sevens -- right after the break.
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QUEST: We are now having a massive debate between us all here about who remembers the hot summer of 1976. Anybody who lived through that will remember it in Europe. @RichardQuest is the Twitter address, where we can have a discussion about your memories of that.
And I can tell you something else: I think Elton John and Kiki Dee, "Don't Go Breaking My Heart" was number one in the British charts in 1976 in the summer, and it's the only time it had been number in -- anyway, there we are. We digress.
More than $1 million in cash has gone missing from a Swiss airlines flight at JFK Airport here in New York. Shortly after the plane landed at the airport, the FBI says it noticed in a shipment of currency was $1.2 million short.
It's not known if the money was already missing before it took off from Zurich. A law enforcement source tells me -- tells CNN the money was being moved from Switzerland to U.S. by an American bank.
Felicia Taylor joins me now. We'll be searching your wallet and your purse before the day's finished.
How on Earth -- they know the money's missing. But they don't know whether it was on the plane to start with or whether it was stolen in New York. What do they know except it's not there?
FELICIA TAYLOR, CNN CORRESPONDENT: Well, OK, but what is there is still $92 million. I mean, they're a million dollars short, so it's kind of a rounding error when it comes to numbers like that. But nevertheless, that begs the question.
Did it happen in the cargo hold in Zurich? Did it happen at JFK? This is not the first time that things have gone missing at JFK. They have a history, if you remember, the Lufthansa flight back in 1978 had about $5 million in jewels lost. So this is something that's been recurring. It was headed for the Federal Reserve Bank of New York.
Which American bank was transferring the money is still unknown. It was stolen in 12 bundles of $100,000 apiece and evidently one of the cargo boxes had a nice great big hole in it. And one of the handlers just didn't think it was important enough to report. And it evidently didn't notice by anybody else, but a million dollars going missing, you think I'd still be sitting here?
QUEST: Good grief. Diamonds in Amsterdam going missing, money from New York. I lost a washbag at Heathrow Airport about three months ago, but that's something completely different.
Felicia Taylor, who is in New York with me tonight, thank you.
China's growing appetite for wine has run into resentment in France. There's a growing feeling of unease as Chinese buyers are snapping up ancient chateaux and vineyards. Our correspondent sniffing the grape is Jim Bittermann.
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JIM BITTERMANN, CNN SR. INTL. CORRESPONDENT (voice-over): Who knows whether this will be a good year for French wine, but it surely seems to be a good year for French wine sales, not just the bottles, but entire vineyards are on the block, as more and more Chinese buyers develop a taste for wine.
At this year's big international sales event called Vinexpo, nearly 7 percent of the visitors were Chinese who now buy nearly 800 million euros or a billion dollars of French wine each year. But the sales go beyond just the finished product.
In Bordeaux, by the end of this year, the Chinese are expected to own 50 of the region's 10,000 chateaux. There's such a potential for sales to Chinese that the real estate arm of Christie's auction house has opened up a Chinese section and hired a full-time translator, who says the Eastern buyers often lack one vital bit of information.
LI LIJUAN, CHRISTIE'S, CHINESE DESK: The question is after when they purchase a vineyard how to manage the property because they only speak Chinese or a little bit of English. But we are in France. We have the culture gap and we have different law.
BITTERMANN (voice-over): That cultural gap can pose a problem, especially if the buyers looks on a chateau purchase only as an investment, according to a wine trader who sold 70 percent of his business to the Chinese.
JEAN-PIERRE ROUSSEAU, PRESIDENT, DIVA BORDEAUX TRADERS: The wine business is a little bit different. You have to enjoy wine to be in the wine business. It's not such a well-remunerated business.
BITTERMANN (voice-over): But if the profits are not always big, the pitfalls may be. In some parts of France, there's outright resentment at Chinese purchases of vineyards, especially the famous ones.
In Burgundy in particular, where many of the famous wines are looked on as part of the national patrimony, there was anger last year when one of the most famous chateaux, Gevrey-Chambertin, was put on the block.
A local group raised 5 million euros to buy it, but they were outbid by a Chinese businessman who snapped it up for 8 million. Said the head of the local wine association, "Our heritage is going out the window."
JEAN-MICHEL GUILLON, PRESIDENT, WINE GROWERS ASSOCIATION (through translator): Let's ask this question to the Chinese if a couple of Europeans would buy 10 or 20 meters of the Great Wall of China. It's exactly the same state of mind. I think there is something which belongs to us, a heritage of centuries ago? I mean, do you realize the 12th century.
BITTERMANN (voice-over): As upset as some in the wine business may be about the Chinese foray into the vineyards, others believe they should be welcomed. Observed a wine dealer who appreciates their cash, "I believe a good part of the future of Bordeaux lies with China." -- Jim Bittermann, CNN, Paris.
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QUEST: It is a tough assignment, but Jim Bittermann had to do it.
As for where you and I can continue our discussion, @RichardQuest is the Twitter name where you can, of course, obviously tweet and we can have a discussion.
And of course a final look at the market before we go to a "Profitable Moment."
The Dow Jones industrials' up 114 points. It's a very strong session. It's reverting not all, but just some of the gains of the past few days. Markets are either maturing or seeing sense on the question of economic growth, which is coming forward. I'll have a "Profitable Moment" after the break.
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QUEST: Tonight's "Profitable Moment": since the economic crisis began, Europe has lurched from one incident to the next. And many of them have threatened the very future of not just the euro, the currency, but the union itself.
None are as pressing as the crisis of youth unemployment, a scourge of a lost generation. Almost 25 percent of young people are without work in the Eurozone. And for this jobless generation, the frustration is building and building.
Central bank reassurance is of little comfort to the young man or woman stuck at home, looking for worker, sending resume after resume out and not hearing anything back.
Day to day movements of the markets are of little worth to those whose talents are going to waste. We know the answer: what the people really need is action. And time and again, leaders in Europe make the noises but where's the action?
Well, this week, leaders have promised to make unemployment their top priority at their Brussels summit. Better late than never, some would say. I promise you this: if all we hear on Friday are more promises and platitudes, it'll be a crushing blow.
And I'll be the first person on this program to tell them why they've got it wrong again and why they are dicing with trouble. Young people around the world deserve better. They deserve a job. And it's time their elected politicians got back to work to put them to work.
And that's QUEST MEANS BUSINESS for this Tuesday night in New York. I'm Richard Quest. Whatever you're up to in the hours ahead, I hope it's profitable. I'll have the headlines next.
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QUEST (voice-over): The headlines at the top of the hour: there's an air of increased concern around the hospital in South Africa, where the former president Nelson Mandela is being treated. Police are blocking the street and people are paying tribute with flowers, notes and even songs. In the last official update, Mr. Mandela was said to be in critical condition.
President Barack Obama says the United States must be a global leader in the fight against climate change. The president unveiled a string of policy measures in Washington. Mr. Obama said the Keystone pipeline project should only go ahead if it does not lead to an increase in greenhouse gas emissions.
Afghan police have stopped a group of Taliban gunmen who attacked the presidential palace in the heart of Kabul. The gunmen used fake NATO identification to enter the palace grounds before being stopped by guards. A fight broke out; all the gunmen were killed. Three guards also died in the attack.
The White House says there is, in their words, "clear legal basis" to expel Snowden from Russia. Snowden's been leaking surveillance secrets; is currently in the transit area of Moscow's airport. The Russian president said Snowden is free to go.
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QUEST: You're up to date with the news headlines. Now also in New York, "AMANPOUR" is live.
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