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Quest Means Business

Three Women Rescued from Decades of Slavery in UK; Rehabilitation of Trafficking Victims; Dow Closes Above 16,000; Latvia Mall Collapse; Fragile Recovery; Make, Create, Innovate: Swiss Army Knife

Aired November 21, 2013 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(NEW YORK STOCK EXCHANGE CLOSING BELL)

RICHARD QUEST, HOST: And there's the closing bell, the gavel has been struck, and the Dow for the first time in history is over 16,000 at the close. It is Thursday, it is November the 21st.

A very busy day. We'll tell you about in London three women released from 30 years of forced labor. We'll be live at Scotland Yard in a moment.

Also tonight, call it the new sick man of Europe, France teeters on the brink of recession.

And it really was a case of right plane -- oh! -- wrong airport. But Boeing's Dreamliner takes an unexpected detour.

I'm Richard Quest. I mean business.

Good evening. I'll bring you the day's top business news in just a moment, but an extraordinary day of events in London with some startling news out of the British capital, where three women have been held captive for more than 30 years and now have been rescued from a house.

The victims are described as, not surprisingly, highly traumatized and are now being cared for by a charity. They were actually freed in October. It was only today that the Metropolitan Police arrested a man and a woman earlier.

(BEGIN VIDEO CLIP)

KEVIN HYLAND, DETECTIVE INSPECTOR, LONDON METROPOLITAN POLICE HUMAN TRAFFICKING UNIT: We've established that all three women were held in this situation for at least 30 years. They did have some controlled freedom. The Human Trafficking Unit of the Metropolitan Police deals with many case of servitude and forced labor. We have seen some cases where people have been held for up to 10 years, but we have never seen anything of this magnitude before.

(END VIDEO CLIP)

QUEST: We need to go straight to London and Max Foster, who's with us from outside Scotland Yard. New information this evening, Max? What can you tell us?

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: A small piece of information. We know that the two suspects were arrested this morning at their home. We've also been told that they're not British nationals. We're not getting much more information than that tonight.

So, the period of events seems to be that someone, one of the women in the house, watched a television documentary about forced marriage. A charity was featured in that documentary, and one of the women was brave enough to get in touch with that charity.

The charity started a dialogue, prearranged calls, discussing how they could possibly get out of this situation. Eventually, they got to a position where they were confident enough to leave. The police waited outside, and they walked out.

But that was last month, Richard, and the couple, the two people, at least, who were arrested, were only arrested today. So, there's a gap there. There's some information that we don't know, and the police admit that they're still questioning these two people. So they need to find out a lot more, too.

But one of the most concerning elements of this, obviously three women have lost their entire freedom through this process, but one of them is 30 years old. So, throughout her whole life, she's been in servitude.

QUEST: And Max, I understand, of course, that there's many things that we are not being told yet, but this idea that they had some controlled freedom, can you shed any light on what you think this means?

FOSTER: Well, really, that was that they were allowed to watch television, they were allowed to use the phone. And beyond that, we're not clear. They were obviously very concerned about leaving the house, but perhaps there was some controlled leaving the house? We don't know.

QUEST: Right.

FOSTER: There are elements of this that we don't understand because we don't have the information. One thing they did say is that they're currently not investigating a sexual motive in any way. So it really was just labor, domestic labor.

QUEST: Right. And listening to the full interview earlier in the day that you had with the police officers, they seem -- as one can well understand -- but they seem absolutely incredulous. It's as if, as he said, they've heard of five, ten year servitude. But this is out of the ballpark.

FOSTER: We can't think of another case which is up to 30 years. Josef Fritzl, his daughter was in captivity for 23 years, so it is extraordinary, and a lot of people obviously are asking the question here in London how could these people stay in this condition for such a long time in a busy part of London.

You know that area of London. And it was a suburban area. The charity says it was an ordinary house in an ordinary street. I'm sure many of those people living in that street are traumatized tonight as well.

QUEST: Max Foster on a cold evening in London outside New Scotland Yard. Max, thank you. Modern-day slavery exits. We've talked about this on this program so often. It is a worldwide problem. A report by the Joseph Rowntree Foundation earlier this year found that the number of people in forced labor in the United Kingdom alone could run into the thousands.

The victims are likely to be low-skilled, low-paid manual workers. The risk industries include construction, care, and hospitality. In a separate report, the International Labour Organization, the ILO, estimates there are almost a million forced laborers in the EU. Nearly two-thirds of victims are women.

So, after nearly 30 years in captivity, more than, the three women have a chance to rebuild their lives. Let's talk to Andrew Wallis, chief executive of Unseen, a charity that helps rehabilitate victims of trafficking.

Before we talk about how you rehabilitate, you obviously spend your entire working life dealing with these issues. You must be horrified that something like this could happen in the heart of one of the biggest cities, modern cities, in the world in the UK.

ANDREW WALLIS, CEO, UNSEEN: Good evening, Richard. I wish I could say I was horrified, but yes, this is an extraordinary case in terms of the length of time that these women have been held in modern slavery. But we are seeing in the UK and around the globe and in the US more and more victims of slavery being discovered as awareness of this horrible crime grows.

QUEST: Now, at one end, we have this sort of Ariel Castro type of slavery where, locked up, chained up, sexual elements to it, you physically can't get out. But as I understand modern-day servitude, quite often, that -- there's an element of freedom, but a freedom that the people do not feel able to take advantage of or to run away from. Explain that to us, please.

WALLIS: OK. I live in the city of Bristol. So, 200 years ago, you could go down to the dockside and you would have seen the trans-Atlantic slave trade and you would have seen people shackled in irons, and that would explain why they couldn't leave that situation.

What has happened is that slavery has continued, but what we now have is psychological shackles. So, these people are threatened, they're coerced, violence is meted out on them. And they're told if you leave, we will find you, we will either bring you back or we'll kill you or we'll kill your relatives. So that level of control is there --

(CROSSTALK)

QUEST: So those that are --

WALLIS: -- so that people are --

QUEST: I'm going to -- I'm just going to interrupt you, because to those of us in everyday life --

WALLIS: Yes?

QUEST: -- we find that almost inconceivable that we couldn't just walk out of the front door, walk up to a policeman on the street and say, "Help, I'm in trouble, I'm being held slave" and that the wheel's in motion. So, I know that's a naive point, bearing in mind your experience, but tell me why it's naive.

WALLIS: Well, it's not naive, because I think it's the incredulity that people have around this subject, which is how can someone be held just through those psychological controls? But they are.

When -- if you are removed from, say, a country to another country and they show you pictures of your family and they say, "We know where you live, and if you try and leave this situation, we will get your family."

If you have witnessed -- and I mean, there are horrendous stories. If you've witnessed people beaten or even killed in front of you, then you are threatened with a choice. If I leave, is this going to happen to me?

QUEST: Andrew, what do you do now? You have to -- I mean, not you personally, obviously, but what is the process that has to take place with these women. Rehabilitation into society is almost -- it's a trite phrase to use.

WALLIS: Yes. It is going to be a long, long journey. Obviously now at the moment, there is the ongoing investigation that the police have undertaken as gradually they give information out. But the OSCE released a report literally a few weeks ago where they said the trauma that victims of modern slavery suffer is akin to torture. Is akin to what we saw in concentration camps in the second World War.

QUEST: Right.

WALLIS: So imagine the process that they've got to work out. It's going to take years. And they will probably need to be supported and have psychological care wrapped around in support for the rest of their lives.

QUEST: Andrew, unfortunate, the circumstances under which we speak, but good to see you and thank you for making -- for putting this into perspective for us.

WALLIS: Thanks, Richard.

QUEST: I appreciate it. Obviously, when there's more to report on that, we will bring it to you. But let's turn our agenda to our normal diet for this hour together. I want to -- I'm going to save the moment, if I may, because this is a bit -- look at this.

First time in history, Dow Jones Industrial closes over 16,000, up 109, a strong performance. Alison Kosik --

WALLIS: You're welcome

QUEST: Alison Kosik in -- why today and not yesterday or tomorrow?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Your guess is as good as anybody's.

(LAUGHTER)

KOSIK: You know what you can do at this point? You can pin it on a better-than-expected drop in weekly jobless claims. That could be the impetus to getting the Dow to go as high as it is.

Also, you're seeing investors still focusing on those Fed minutes indicating a tapering of stimulus could happen sooner rather than later, but at the moment, the thinking actually is that any pullback in that stimulus won't happen at the December meeting. So that kind of game room for the bulls to run today.

One trader told me some bad news may have helped to give stocks a little movement today, the trader saying the City of Brotherly Love gave us the love in the market, meaning Philadelphia. The Philadelphia Fed Survey, that's a manufacturing survey --

QUEST: All right.

KOSIK: -- showed a big drop --

QUEST: Alison?

KOSIK: -- which basically shows bad news is good news, and there you go, you've got yourself a rally over 16,000.

QUEST: Alison, thank you. Forgive me interrupting you, I don't mean to be rude, but I do have some other breaking news, because there's another breaking story we're following tonight. At least four people have died and dozens of others are injured after a shopping center roof collapsed in Latvia.

It happened in the capital, Riga. It happened late on Thursday. Emergency crews, obviously, are at the scene. There are fears that around 50 people may be trapped beneath the rubble. Riga is a city I'd been to many times, beautiful city.

Let's speak to the mayor of Riga, Nils Usakovs. Mr. Mayor, do you believe -- can you update us on how many people you think are still trapped under this shopping mall ceiling?

NILS USAKOVS, MAYOR OF RIGA (via telephone): It looks like 30 people are trapped, and out of them, 4 or 5 are rescue workers. So, the operation is still going on.

And right now, the main preliminary information is that we've faced the violation of security regulation because they were building a playground and winter garden on the second floor. And it looks like they located all the building material in one place, and this place was not above the pillars, so it was somewhere in between.

And as a result, part of the building collapsed and it collapsed on second floor, and the second floor was next to the shopping mall.

QUEST: So, early days and there'll be a full investigation, but what you're saying is, building -- a building of a playground and building materials stored incorrectly in the middle of the floor and that, of course, obviously -- must have been very heavy weight that brought down the ceiling.

USAKOVS: Exactly. Because the playground was planned to be erected on the second floor, on the roof. And they were putting all the building materials on the roof, not above the pillars, but somewhere in between.

QUEST: Right.

USAKOVS: As a result, we've got a tragedy.

QUEST: Now, I was unable to hear the number. Did you say you believe there's 30 people who are still trapped?

USAKOVS: Yes, 30, 30 persons, and out of them, 4 or 5 may be fire rescue workers.

QUEST: Right. So, roughly 30 people, which include 4 to 5 rescue workers. Now, a dreadful question, forgive me, but I have to ask it. We know that 4 people have passed away or were killed so far. Is it your feeling that the number who will have perished here will rise, or do you believe that the 30 are well?

USAKOVS: We cannot make any forecasts right now, because even the number, when I say 30, it's not like a guess, it's probably a professional guess. But we still don't know the precise figure. We all pray to God that the number will be only 4 that we know right now, 3 shoppers and 1 rescue worker.

QUEST: Mr. --

USAKOVS: But it may be accurate. Unfortunately, it may be more, but we do hope it will be only 4, if you can use the word "only" in this case.

QUEST: Mr. Mayor, do you have all the resources you need to handle this situation? Have the fire and rescue got all the equipment they need to get on with the job?

USAKOVS: This operation is undertaken at a national level. State police and military personnel are providing security around the place and will also participate in the investigation. But operation is at a national level.

QUEST: Mr. Mayor, thank you very much. Our condolences, of course, and our best wishes in terms of how this operation proceeds as it goes --

USAKOVS: Thank you.

QUEST: -- forward. And thank you, sir. I know you're very busy. I do appreciate you taking time to speak to us.

Let me recap there. The mayor saying that it's believed that there may still be up to 30 people who are still trapped under the shopping mall in Riga. Of those 30, up to 4 or 5 of them could be rescue workers.

The incident happened after the ceiling collapsed. It's believed -- believed -- because of building materials that were perhaps being stored above for the purpose of building a children's playground.

We'll return in just a moment. This is QUEST MEANS BUSINESS, good evening.

(COMMERCIAL BREAK)

QUEST: Call it taking the temperature and the health in Europe, and there's new evidence that Europe's recovery is weak, fragile, and most definitely uneven. Take the area's two largest economies. The doctor is in.

Germany is in rude health. The so-called PMI, Purchasing Managers' Index, measuring business activity, it rose. It rose very nicely to 54.3 this month. Now, an indication above 50 shows an economy that is going. Maybe not gangbusters, but it is growing.

Unfortunately, across the ward in the intensive care unit, we have France. Maybe not intensive care, I'm overstating it. But France is rapidly becoming the sick man of Europe. The Purchasing Mangers' Index unexpected fell to 48.5, it's in the red. And by the same token, because it's now under 50, that suggests an economy that's declining.

It's the third decline in three months. Sorry, the first decline in three months, and it suggests real problems ahead. Whether it suggests a recession in France is another matter. I spoke to Dominique Barbet, the senior economist at BNP Paribas in Paris, and I put it to him, this is a worrying situation.

(BEGIN VIDEOTAPE)

DOMINIQUE BARBET, SENIOR ECONOMIST, BNP PARIBAS: Yes, definitely, it's a big concern. We have had a big discrepancy between the performance of the different European countries over the past few years, and there is no real sign of lasting improvement on that front. And this is, indeed, a concern, not only for France but for the entire eurozone.

QUEST: Did we look at last week's numbers from the European Commission, and we look at the OECD's numbers, there's no doubt that -- and I don't wish to sort of belabor the point -- but France, of all the major countries that should be doing better, France is now the sick man of Europe.

BARBET: Maybe not the sick man of Europe. If you look at smaller countries in southern Europe, you still have much greater deficiencies, higher debt-to-GDP ratios, larger budget deficits, lower economic activity, higher unemployment rates.

But certainly, France is not recovering as fast as it should do, as it needs to do in order to reduce unemployment. So, we are not out of the woods yet.

QUEST: Whichever way we slice this cake, the taste is always the same. France is growing -- France is in trouble, and it's not going to get out of it very quickly.

BARBET: Yes, exactly, you are right. That's the problem, and the people in the streets in Paris, in France, are tired of this long period of no economic growth, if not recession. And people are concerned about the future, the future of their purchasing power, the future of their social model. And of course, that's a big concern for everyone.

QUEST: And in the midst of all of this, President Hollande sticks firmly to his high-tax policy.

BARBET: At least he tries to stick firmly, but we've seen recently he had on some issues he had to step back, and that's another problem, the lack of authority of the government -- the French government in France at present. And this is likely to be shown in the elections next year.

So, I don't think the life expectancy of these governments is very long. I think in six months' time or so, we may well have to change the government, and the president will have to change for a new government which would be in a better position to finish the job of structural reforms.

(END VIDEOTAPE)

QUEST: France and the questions of economic growth. Coming up, the Swiss Army Knife has saved many more lives over the last century, and in that time, little has changed over how it's made. We'll go to Switzerland and trace the history of this pocket hero. QUEST MEANS BUSINESS.

(RINGS BELL)

(COMMERCIAL BREAK)

QUEST: Talk about one of the most iconic designs of the late 19th century -- it's elegant, it's lightweight. It's a knife with six practical tools. I'm talking about, of course, the Swiss Army Knife. Now, depending on you definition, it's a lifesaver of a gadget, whatever you use it for.

But tonight's Make, Create, Innovate, we've been to Switzerland to discover how it's made. As Nick Glass now tells us, in more than a hundred years, ooh, it might look a bit different and they may have added a bit here and there. Truth be told --

(RINGS BELL)

QUEST: -- not much has changed.

(BEGIN VIDEOTAPE)

NICK GLASS, CNN INTERNATIONAL CORRESPONDENT (voice-over): Charles Elsener grew up in Ibach, Schwyz, known as Swiss Knife Valley. He went to the local high school, but his destiny was always on the other side of the mountain.

CHARLES ELSENER, CEO, VICTORINOX: I worked here for 34 years. My father worked here for 70 years. My grandfather worked here, and my great- grandfather started Victorinox in 1884.

GLASS: Victorinox makes knives, including the most famous pocket knife of all, the Swiss Army Knife. Karl Elsener named the company after his mother, Victoria.

ELSENER: The term for stainless steel is "inox." So, Victoria and inox become Victorinox. My great-grandfather learned the profession of knife-making, and he opened a very little workshop here in the Swiss Knife Valley. At that time, he used the power of a little river to drive his grinding and polishing machines.

GLASS: Karl Elsener's first big order came in 1891 when the Swiss Army commissioned a knife for every soldier.

ELSENER: This knife was a little heavy and bulky, and therefore, the founder of our company decided to develop a lighter, more elegant knife.

GLASS: Up until then, pocket knives had just four features and could only spring out on one side of the knife.

ELSENER: Really, the breakthrough to make the Swiss Army Knife for compact, so functional, were these two little springs, which he developed in 1897, and which was the pop tent on 2-12-1897. And this made it possible for the first time to operate on only two springs six different tools.

GLASS: It's the breakthrough upon which all Victorinox knives depend today.

ELSENER: The Swiss champ today, who is the flagship, the Swiss Army knife, has 33 different functions, but it's still a very small toolbox.

GLASS: Today, Victorinox employs 1800 people internationally. Half of them work at the Ibach, Schwyz factory. They make 120,000 knives a day. That's 25 million a year. All lovingly assembled by hand.

Times haven't always been so good.

ELSENER: The biggest challenge for us were the consequences of 9/11. It became very difficult to sell our knives in duty airports, so sales have dropped for almost 30 percent overnight. 9/11 also has showed us how dangerous it can be for a brand if it constantly depends only on one product category.

GLASS: Victorinox's response, expand the brand. Watches, perfume, luggage, and clothing, all with the famous log.

ELSENER: I think for Victorinox and for our products, that the heritage of Switzerland is still very important, and it's a little bit of Switzerland with you forever.

(END VIDEOTAPE)

QUEST: Now, when we come back after the break, two pilots would have needed slightly more than a Swiss Army Knife to get them out of the little problem that they had. Wichita, we have a problem. One of the world's largest cargo plans --

(LAUGHTER)

QUEST: -- landed at the wrong airport. The mission to get the mammoth aircraft to the right one 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.

Police in London have arrested a couple suspected of holding three women captive for more than 30 years. Now, according to the police, the women do not appear to be related, and they say the youngest seems to have spent her entire life in captivity. Investigators say the women are highly traumatized and are now in a safe place.

At least four people have died and dozens more injured after a shopping center roof collapsed in Latvia. It happened in the capital city, Riga, late on Thursday. A few moments ago, the mayor of Riga told me as many as 30 people may still be trapped under the rubble.

The Afghan president, Hamid Karzai, is assembling -- urging an assembly of tribal elders to support a security agreement with the United States. The Loya Jirga is now debating the deal. It would allow some US troops to stay in Afghanistan after NATO's combat mission ends next year.

Global negotiators in Geneva in Switzerland are trying to hammer out a deal on Iran's disputed nuclear program. The diplomats are now downplaying hopes of any agreement tonight. A senior Iranian negotiators says there are divisions over serious issues.

Well, it was all about mathematics and physics, but engineers in Kansas have managed to get one of the world's biggest airplanes off a runway that was designed for decidedly smaller aircraft after the plane landed over there. Now it was the Boeing Dreamliner which took off -- or Dreamlifter I should say -- the Dreamlifter which makes the parts and uses the parts for the Dreamliner -- and there it goes. The runway's only six and a half thousand feet. Normally this plane fully laden needs over 9,000 feet, (V-1) rotate and climbs out beautifully. One thing we do know about this aircraft -- it must have been empty. It certainly wasn't full to the brim, otherwise it would have needed the full whack of runway. It took off a couple of hours ago. Now, an investigation is underway as to how it ended up at the airport.

Engineers didn't even know at first if the plane would be able to take off on the short runway, bearing in mind. Now this is -- so, let me show you and try to explain how this sort of thing might have happened. This is where the mammoth 747 Dreamlifter should have landed. It's at McConnell Air Force Base. Two parallel runways -- quite easy to see. This, 11 miles away, is where it ended instead -- Jabara Airport. Now, you may think how it is that -- let me show you. There is -- that runway's going in that direction. You can see the pilot's mistake. The airports aren't far apart, and their runways face in the same direction obviously because of the prevailing winds. So when the cockpit was informed of the error, what was interesting is never mind not landing there -- they didn't even realize they'd landed there, they thought they'd landed somewhere over there.

(BEGIN VIDEOCLIP)

Male Controller: Giant 4241 heavy, confirm you know which airport you are at?

Male Pilot: Well, we think we have a pretty good pulse.

Male Controller: Giant 4241 heavy, roger, you uh -- it appears you are at Jabara.

Male Pilot: Umm, Say again?

Male Controller: Giant 4241 heavy, we saw the plane on the radar and it appears you are at Jabara Airport.

Male Pilot: Say the name of it again?

Male Controller: Jabara.

Male Pilot: Jabara?

(END VIDEOCLIP)

QUEST: So, how common is it? Well there's about 13 incidents in the last ten years. Let me show you another incident that happened in Indonesia last year. A Sriwijaya, an air freight flight was meant -- the air freight flight was to meant to land at this airport -- Minangkabau Airport. Look and notice where the runway is going. It's in western Sumatra, by the coast. And this is where it actually landed -- at (Tubbing) Air Force Base, runways similarly positioned, not that far apart. You can see how it happens (inaudible) from the south. An investigation showed both pilots and co-pilots were unfamiliar with the area and as they came in to land of course, they got clearance early on and therefore just landed.

Let's discuss this with Mary Schiavo the former Inspector General of U.S. Department of Transportation. She joins us via Skype for Charleston, South Carolina. Mary --

MARY SCHIAVO, AVIATION ATTORNEY: Yes.

QUEST: People it extraordinary but you and I know it's not unique.

SCHIAVO: It is not unique, it happens. I mean it happens several times a year. You only hear about it when it's a big, fancy or famous plane. But when you're getting your license, the stories are legion of pilots doing it -- and this is a very elementary mistake, but you're exactly right. When the runways have the same marking and people may not understand that that there are compass heading markings, and they're only you know ten miles apart, you know a piece of pavement with two, two or a nine on them looks very similar.

QUEST: Right. But what everybody in this -- I tried to explain it. I even tried to explain it to my boss today, and he looked at me like I was a raving lunatic. Because what he said is, 'Surely the cockpit has so many instruments and radars and maps and you get permission from ATC to land, how does it happen?'

SCHIAVO: Exactly, and you know we all have apps on our iPhones where we call a cab and we see the cab on our iPhone pull up within inches of where it's supposed to be and -- what happens is they don't pay attention. Once they have the runway in sight, they assume they're at the right runway. There's an Air Force base in Tampa where this happens probably every other year. And in my flight school at Ohio State University, which has the nice little -- you know -- little Cessnas and Pipers, that airport was host to a TWA jet full of passengers once because the runway was marked the same as Port Columbus.

QUEST: This afternoon, the FCC's -- the FAA's -- come out with proposals saying that they're going to allow or they're looking at allowing mobile phone calls in flight above 10,000 feet. Now, (Rina) -- you'll know (Rina) and many European carriers, many Asian carriers already do this. The technology is available. You have a repeater in the roof of the aircraft. So is it a big deal?

SCHIAVO: Well, it's not a big deal other than it's a huge annoyance because remember years ago we used to have the GTE phones in the back of the seat and you know from time to time you'd have to make a call from the plane or you'd do it just for kicks. And so people, you know, people my age remember that but others may not and so we used to allow it, so it's not a big deal. But airlines are going to be under tremendous pressure because people just don't want to hear other people's phone calls.

QUEST: Right.

SCHIAVO: And I suspect that the airlines will put rules in place.

QUEST: Very good to talk to you, we'll have to go down and go flying down at your local airport.

SCHIAVO: Absolutely.

QUEST: Many thanks.

SCHIAVO: But not the Dreamlifter.

QUEST: Not on that airport anyway. Coming up after the break, gamers across the world are getting their hands on the Xbox One. The device is begin launched in 13 countries. We're going to talk to Microsoft about their new product after the break. This is "Quest Means Business."

(COMMERCIAL BREAK)

QUEST: Microsoft's new Xbox One console goes on sale in 13 markets and that includes the United Kingdom and the United States. Last week we told you about the Sony PlayStation 4. Now for "Quest Means Business" Jim Boulden's been given a sneak preview of the new console. He spoke to Chris Lewis from Microsoft. There's a whole new market and it's evolving right now.

(BEGIN VIDEOCLIP)

CHRIS LEWIS, VICE PRESIDENT, INTERACTIVE ENTERTAINMENT, MICROSOFT EUROPE: I think in a nutshell this is where the best lineup of games and entertainment just come together with Xbox One. You know, the technology is amazing. We've got the magic of the integration of Skype. We have a high definition camera here that you can immediately switch and chat with your friends with a big viewing angle. I've got the controller in my hands here that's just reviewing so well. People love the new thumb, the sticks design, the rumble in the triggers. There's just so much now in the way that entertainment which has moved on and we're really excited about what that means for our fans.

JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: Now I'm not a gamer but we have a 360 at home but I'm thinking this more about how it fits into my living room and what else I could do with it because I'm not going to be the one playing the game. What is it that you're saying that the One is going to do for the people who may be the one buying the console?

LEWIS: That's a great question. I mean, and we are very proud of the fact this is the one stop for your living room entertainment, customized to use. So when you walk into your front room, the camera recognizes you. It immediately puts up the things that you like doing, the games that you like playing, the movie you were just watching. You can use your voice in order to navigate. Xbox, unmute.

BOULDEN: Can I control my TV with it? Can I control the volume? Can I look at Skype easily through this?

LEWIS: Most definitely. Those things have to be easy -- our consumers demand that ease. And I think the power of Xbox One is that customized (bespoke) approach that we're taking such that it's personalized to you.

BOULDEN: When we last spoke about the Xbox 360, I'm not sure the iPhone was even out. Certainly, mobile gaming was a fantasy.

LEWIS: Sure.

BOULDEN: Completely changed this market. Are you coming with something that's a little bit too late because most people are doing it with a cheap and easy mobile and coming -- and a lot of free games, a lot - - the quick, fun entertainment on their mobile?

LEWIS: Well I think what's great about the industry is so many more people are playing so many -- so many more games and consuming digital entertainment in lots of different ways. I think undoubtedly what sets us apart is the integration that we enjoy across phones, tablets and Windows. For me that's the magic. Is that recognition of you -- that tailored experience where you can you know pick up where you left off before. You can chat with your friends via Skype. We've got Bing integrated now such that you can search for things with your voice.

BOULDEN: What are your base markets in Europe?

LEWIS: Well, we're sitting in them right now. I mean, you know, it's nice to be in the U.K. It is, as everybody knows, a very sophisticated, very mature market. We've got a high population of what we described as the core gaming community. And it's a market we've always done very well in. We established ourselves well with the very first version and we've enjoyed that success consistently since. However, Italy, France, Germany, Spain -- they're all markets that we're highly invested in. We're much more customized now in the way we got to market in those places. The voice of Europe is now very loud in our global development. We can't meet our global aspirations unless we're really successful -

BOULDEN: Yes.

LEWIS: -- everywhere in Europe.

BOULDEN: And I'm guessing the term 'One' meaning it's the one machine, the one box you need in your living room.

LEWIS: We're for one place where all of your digital entertainment comes together in a way that frankly nothing else can achieve that. So, we're very excited about what that means and it will evolve over time.

(END VIDEOCLIP)

QUEST: Now, let's talk about something where we're putting ourselves to the test. Never mind gaming on the big screen or the big computers, what about the little app? Well there's nothing trivial about an app called Quizup which has taken the mobile gaming world by storm. If you haven't seen it, Quizup, it's an app which allows players to show off their knowledge about a variety of subjects. Endless rounds of silly questions and drinking beer at the same time. No, that's optional. You can compete against friends and strangers alike. Quizup's the reigning champion on iTunes with more than a million and a half users. And the company behind the app has scored millions of dollars funding it. Samuel is with me -- our own millennial -- our own tame millennial is with us.

SAMUEL BURKE, BUSINESS CORRESPONDENT: You were just talking about Xbox, Richard. They'd better watch out. Hundreds of dollars for an Xbox. Quizup is free.

QUEST: Well what's so good about Quizup? I mean we all -- we remember Trivial Pursuit. Why is this any different? It's just -- it's an app that does quizzes.

BURKE: I think what's really -- I spent all day thinking -- why didn't I think of this? Because it's just like Trivial Pursuit except you can play with your friends. You could be back in London, I could be back in my hometown of Phoenix, Arizona and we could be on the phone playing with each other.

QUEST: All right.

BURKE: Should we do it?

QUEST: Go on.

BURKE: All right, let's try it out. First one, where is -

QUEST: Where do these questions come from?

BURKE: This came from the game.

QUEST: Right.

BURKE: Oh but this came from -- yes. Where is this papal palace? Castel Gandolfo in Italy, Avion, France, Rome, Italy, Toulouse, France? Which one do you say?

QUEST: It's Castel Gandolfo.

BURKE: I said Castel Gandolfo too. The correct answer is. Avion, France. We're both wrong. (Inaudible), next one. Here we go. Where is this statue of Martin Luther King? Memphis, Tennessee, Washington, D.C., Atlanta, Georgia or Birmingham, Alabama? You first.

QUEST: Birmingham, Alabama.

BURKE: I say Atlanta, Georgia. We're both wrong -- Washington, D.C. OK, one more -

QUEST: I didn't -- I was convinced it couldn't be Washington, D.C.

BURKE: That's what I thought so I thought it was trying to fool me. One more, make or break. Quest versus Burke. A famous Saturday street market is held here in Notting Hill, London. What street is it -- Peckham High Street, Pudding Lane, Portobello Road, Petticoat Lane. We both used to live in London so we're both going to get this one, right?

QUEST: It's Portobello Road.

BURKE: Of course, Portobello Road. Am I right?

QUEST: Yes.

BURKE: Portobello Road.

QUEST: It's a draw. We should really have another question. We haven't got one. All right. So --

BURKE: There is one more question.

QUEST: There is one.

BURKE: Everybody's asking me. How's this app going to make money? Is that what you were going to ask me?

QUEST: I was just about to ask you, Samuel, Samuel Burke, how is this app going to make money?

BURKE: Well, and I know what you think the answer's going to be, because almost every app says this -- that it's going to be through advertising because that what Facebook is (inaudible), but I actually spoke to the CEO of this Icelandic company that -- the company behind this app, and he told me they're not thinking about advertisement. Take a look at what he said.

(BEGIN VIDEOCLIP)

THOR FRIDRIKSSON, CEO, PLAIN VANILLA GAMES: You can (inaudible) by lots of interesting companies that would like to work with us on making really good content inside the game. So, one to do it would be to partner with Hollywood Studios or brand owners on a way of making like a sponsored topic. We've seen a number of success cases of so-called social networks where they made most of their revenues selling things like Snicker packs or Smileys. So that's something we're considering as well.

(END VIDEOCLIP)

QUEST: All right, now then. Let's just put this in context, Samuel. We know Trivial Pursuit was a game of the century and played and whatever. We know parlor games have been very popular. We know quiz shows on television have been popular. This is a no-brainer, and yet I'm stumped that nobody did it before. There must be other games like this apps online.

BURKE: You're right and you're wrong. There are other games about you know quizzes on apps, but they're kind of niche games. They are questions about music for example or just ones about movies. None of them have this kind of social aspect to them when you could be one part of the world, I could be in another part of the world. We could be on speaker phone doing it -- that's what my partner and I have been doing. He's back in London, I'm here and we're on speaker phone and playing the game. So it's missing that social element, and that's what makes all these apps successful -- when they have a social aspect to them.

QUEST: So that's what millennials do?

BURKE: That's right.

QUEST: You must get out more. When we come back after the break, with space for more than 4,000 passengers, the Anthem of the Seas is going to Britain's largest cruise ship when it launches in 2015. It's so huge, you can even go skydiving onboard. The chief exec of Royal Caribbean after the break. "Quest Means Business."

(COMMERCIAL BREAK)

QUEST: Royal Caribbean is set to launch the largest cruise ship that will be based at a British port. It'll be called the Anthem of the Seas and it will embark from South Hampton in 2015. It will be almost as big as 32 London busses or maybe something five A380 super jumbos. Even room for a simulated skydiving along with lots of other extraordinary features. Now of course Royal Caribbean has been building many very large cruise ships. And they're all based along the idea of the family of fun. And I spoke with Royal Caribbean's president and chief executive Adam Goldstein earlier. The importance of these new big ships and what they tell us about the cruising market.

(BEGIN VIDEOCLIP)

ADAM GOLDSTEIN, PRESIDENT AND CEO, ROYAL CARIBBEAN INTERNATIONAL: Well the importance of the newer, larger ships to Royal Caribbean International is that we're able to offer an array of features and options to our guests beyond what they've been able to experience on a cruise before. And what our customers are telling us is that they want to be in control of their cruise vacations. They want to decide what they do and when they do it, and by presenting them with a large menu of choices and new experiences, then they're highly satisfied.

QUEST: And the basing of ships now is obviously a strategically important. Which tells you that the U.K. remains a major market.

GOLDSTEIN: Yes, the U.K. for Royal Caribbean and I believe for the industry -- the cruise industry in general is the second most important cruise market in the world. About 1.7 million British took a cruise last year and that number has been growing at a moderate pace even in a relatively challenged economic times as the British holidaymakers find out more and more about the incredible value of cruising.

QUEST: Are we seeing a segmentation of the cruise industry. As economics get better -- as the economies get better -- between those who want the more individual experience -- the smaller ship if you like, and the those that want the larger, the more theme park -- the more fun experience?

GOLDSTEIN: I think it's very much a question of what type of consumer we're discussing. Families, multi-generational families traveling together clearly prefer larger ships with all the wonderful options like what this new ship will have with the North Star mechanical arm going 300 feet above the water. The skydiving simulator RipCord by iFly. At the same time, there are many people typically traveling as couples who want more destination-oriented experiences, have the time to take longer cruises and quite often they'll take those cruise vacations on smaller ships. And one of the great things about the cruise industry and I think for its future health, is that there's such a wide variety of choices of cruise lines and sizes of ships.

(END VIDEOCLIP)

QUEST: A large ship that could well be coming to a port near you. Assuming of course the weather and seas aren't rough. Jenny Harrison is at the World Weather Center. Good evening, ma'am.

JENNY HARRISON, WEATHER ANCHOR FOR CNN INTERNATIONAL: Good evening to you, Richard. Yes, don't fancy much cruising in the Mediterranean, not for the next few days anyway. And certainly in all three central regions it is all about another storm system making its way across into the area. You can see it in the last few hours beginning to make its presence felt, and of course with the cold air as well, we've got a lot of snow expected in the next 24 to 48 hours. The rain further to the south and the air is milder, so it is a very unsettled picture whichever way you look at it. The snow has been coming down particularly to Italy. Look at this in the last few hours -- again, more new snow -- 27 centimeters, a good snow depth now 35, and also in Austria some more new snow there as well -- 10 centimeters adding to the 23.

So there's more snow to come. You can see the totals. Mostly to high elevations but really becoming quite widespread through much of central France, just missing Paris there. And as I say all because of this cold air. But because this storm system is working its way slowly south, well then you can see where the snow is and the rain of course and slightly mild air. It kind makes the sleet and snow in there as well. Making driving conditions particularly hazardous, it has to be said. And that system coming down over the next couple of days.

And in fact, have a look at these pictures coming out of Spain because this is the latest place to see some pretty heavy snowfall. I mean, look at this. Now again, this is in the high elevations. This is in northern Spain throughout the Pyrenees but really beginning to make things feel very wintery indeed. Certainly slowing down the traffic. But this has perhaps been an area where there's not as much traffic. There's certainly not a big sort of commute area as we often see. So, something to be very aware of over the next few days. They've got the trucks out, they're obviously clearing the roads -- or keeping them clear I should say.

So, we've got more snow in the forecast. Let's go back to the map so I can show you the temperatures. This is the actual temperatures right now across Europe. Then you factor in the wind and this what is really making those travel conditions really quite dangerous. Minus 1 in Paris, 2 in London, -3 in Dublin, so a lot of that snow, a lot of that sleet and rain turning to ice, certainly in the overnight hours and saying very cold into the far south, you can see that there. And of course more rain across the south, so Richard, we're going to be watching the Central Med particularly Sardinia, Corsica where we saw the flooding rains at the beginning of the week. So we'll keep an eye on this and keep you updated. I'll have the latest on that of course tomorrow.

QUEST: It is fascinating, isn't it -- the whole weather situation. You know a few months ago we're talking about drought and heat and now we're worried about snow and sleet. Jenny, --

HARRISON: Well, we're getting a lot of it, that's for certain. Yes.

QUEST: Many thanks. Good to see you. Jenny Harrison of the World Weather Center. We'll have a "Profitable Moment" as we come to the end of the program after the (inaudible) break.

(COMMERCIAL BREAK)

QUEST: Tonight's "Profitable Moment." You think you've had a bad day at work, a slow day in the office, things haven't gone according to plan. Imagine being the pilot of this plane and having to explain how you took one of the largest planes in the sky and managed to land it at one of the smallest airports you could find and all by accident. From what we've heard tonight on "Quest Means Business" is it happens more often than you'd've thought. Pilots become obsessed and fixated on the runway ahead - - it's got the same number as the runway where they're supposed to be landing, it's in roughly the same area. And next thing you know, it slaps down, get it down and oh, dear, we're down. Well, there's some explaining to do at Boeing.

And that's "Quest Means Business" for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, (RINGS BELL) I hope it's profitable. I'll see you next week.

END