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Quest Means Business
Enforcing Right to be Forgotten; UK Phone-Hacking Trial; Economic Fireworks; Argentina Debt Talks; Barclays' Business Academy; Most European Markets Lower; Carney Scraps Cricket
Aired July 04, 2014 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, HOST: Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Ding! Oh, sorry. There's no closing bell on Wall Street
today. Instead, it's a case of let freedom ring. It is, of course, in the United States and everywhere else, the 4th of July. Here in New York,
Independence Day, so no market.
But tonight on our program, forget me not. Google does a U-turn on blocking controversial links.
From the newsroom to Number 10, and now, to the prison. The rise and fall of Andy Coulson.
And fun and games at the Bank of England, but it's just not cricket. Mark Carney says the game's too exclusive.
I'm Richard Quest. I mean business.
Good evening to you. Google's efforts to enforce the right to be forgotten are now sparking criticism and confusion. The search engine says it's
doing its best to balance transparency with privacy. In many European courts ordered the site to take down irrelevant links.
However, Google is facing fierce complaints, now, on the other side of the equation from news agencies, TV stations, and newspapers, and Google had
done an about turn and began to reinstate some posts. Six "Guardian" articles have been reinstated. Come and join me at the super screen.
"The Guardian," six have been reinstated. Some were about a Scottish football referee who lied about awarding a penalty. The BBC, where a
journalist is protesting about the removal of links to a 2007 blog which he wrote. This was Robert Peston, their economics editor. The piece was
about a former Merrill Lynch boss, Stan O'Neal.
Now, Google is saying -- is dealing with a new and evolving process and that it's been swamped with requests. So, what you have here is a fitting
discussion on Independence Day in the United States, because at the heart of the matter, you have two very distinct freedoms.
You've got the right to be forgotten, which of course is promoted by those who say Google's searches are bringing up irrelevant, nonsense, they should
not be tainted by things in the past, versus, of course, the right to free speech. It's an age-old battle, but it's now being fought on a 21st
century battlefield. And the outcome will have major implications for privacy and censorship on the internet.
Ian Hargreaves is a former director of news and current affairs at the BBC, was my boss in those days. He's currently a professor of digital economy
at Cardiff University. Professor Hargreaves, it's good to see you, sir. Thank you for joining us. We really are at this crossroads where I'm not
sure I don't have quite a bit of sympathy for Google.
IAN HARGREAVES, PROFESSOR OF DIGITAL ECONOMY, CARDIFF UNIVERSITY: Well, Google is certainly getting very badly beaten up in Europe. The
politicians are not happy about the way it and other big American internet companies pay their taxes, and they're not happy about the way that they've
stolen the advertising from newspaper companies and caused turbulence for many other kinds of media business.
QUEST: Right.
HARGREAVES: So, that's the background against which this, as you've described it correctly, huge ideological set piece is also occurring.
QUEST: Is it inevitable, though, that this battle between right to be forgotten and right to free speech? Because it's very similar to the
injunction debate that the courts deal with where domestic law fights against the two clauses in the European Convention on Human Rights, which
you'll be familiar with. How do you test against the two rights?
HARGREAVES: Well, you have to balance them, and that means trading off between one and the other. The European Convention of Human Rights
supports both freedom of expression and right to privacy, but how they get balanced depends on the courts.
It's different in the United States, as you reminded us on Independence Day, that it's a -- the first amendment to the American constitution, which
gives a uniquely privileged status to freedom of expression.
And some say that that freedom of expression is what is at the heart of the free or open internet, and that Europe, by taking a more cautious approach
to balancing privacy and freedom of expression is going to hobble its use of the internet and damage the ability of business to innovate and to
attack that wretched European productivity slump.
QUEST: Now, where are your sympathies in this? Where do you think this finally plays out?
HARGREAVES: Well, I don't know where it finally plays out, but I think it's not playing out very satisfactorally at the moment. I think that the
ruling of the European Court of Justice was itself, I think, a rather bumbled affair.
And that ruling has been handed for interpretation and execution to a large American private-sector company, which therefore is put in a position of
deciding which of the 70,000 or so requests of removal of links it's received it should act upon and how. That seems to me to be putting Google
in a position where --
QUEST: Right.
HARGREAVES: -- from its point of view it can't win, but where the outcome is not likely to be very satisfactory to people. And I think that's what's
going on.
I think also what may have gone on in the last day or two is that Google might have rather conveniently brought to the top of the pile some requests
for link removals that were guaranteed to get up the noses of the newspapers and the BBC, thereby stirring it all up on Independence Day.
What could be better?
QUEST: Now, that's a really good point. Because some have suggested Google are actually trying to make this as difficult as possible to
execute. Do you think there's any truth in that?
HARGREAVES: Well, I don't know whether --
QUEST: Right.
HARGREAVES: -- there is any truth in that, but what I do know, because Google have said it, is that they think that Europe needs to have a louder,
a bigger, a more engaged debate about this issue, and I suppose another way of putting what I just said is to say the way that this has gone in the
last 48 hours, well, they certainly got the debate going.
QUEST: Right. Professor Hargreaves, thank you for joining us. Good to see you, sir, as always. Thank you very much, indeed. Ian Hargreaves
joining me now.
Someone who very well might want his crimes forgotten is the former tabloid editor Andy Coulson. Today, he was sentenced to 18 months in prison. The
former "News of the World" head was convicted of conspiracy to hack phones last week. That was when the conviction took place.
A judge said phone-hacking increased enormously on Coulson's watch at "The News of the World" CNN's Erin McLaughlin reports from the Old Bailey.
(BEGIN VIDEOTAPE)
ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT: Well, there were five men in the dock today here at the Old Bailey, former journalists and
employees of the now-defunct tabloid "News of the World," but it was Andy Coulson, David Cameron's former trusted advisor and chief spin doctor, that
received the toughest sentence: 18 months for hacking out of a possible 24 maximum sentence.
The judge explaining his decision, saying that Andy Coulson bears most of the responsibility for the hacking that took place at the tabloid during
his tenure there. He said that while the evidence doesn't suggest that hacking began with Coulson, he said it certainly grew as a practice at the
paper during his time as editor.
It was a decision that really seemed to satisfy some of the anti-hacking activists that were here outside the courthouse today, one in particular
telling me how important this ruling was today. Take a listen.
UNIDENTIFIED FEMALE: I don't think the length of the sentence matters very much. I think it's the fact that a court has said that this is not just
unacceptable, but against the law. So it means as a society we are saying we don't think that this behavior should happen, and it will be punished.
So, I think it has a symbolic importance, which goes beyond the actual length of the sentences.
MCLAUGHLIN: Today the judge saying in court that some of the sentences could have been reduced had the men shown more remorse in the form of
cooperation with the authorities to uncover the full extent of hacking that was going on at the paper.
He said, quote, "there is a certain irony seeing men who pride themselves on being distinguished investigative journalists who have shed light in
dark corners and forced others to reveal truth being unprepared to do the same for their own profession."
So, what we're really seeing here out of this court today is a strong statement against hacking, saying that it's not only unethical but it's
illegal and carries with it some serious consequence. After all, one of David Cameron's former most-trusted advisors is doing hard time in jail.
Erin McLaughlin, CNN, London.
(END VIDEOTAPE)
QUEST: Still to come on QUEST MEANS BUSINESS --
(RINGS BELL)
QUEST: -- as Americans set off fireworks to celebrate Independence Day, we'll look at which global economies are setting off fireworks of their own
in the financial world. Good evening.
(COMMERCIAL BREAK)
QUEST: It's the 4th of July in the United States, and that means from sea to shining sea, the skies will be alight with fireworks, assuming they
aren't rained off by the hurricanes and force wind gales that we'll be telling you about later in the program.
Well, on QUEST MEANS BUSINESS, it's time for our own fireworks display. Join me as we light the blue-touch paper and stand well back. First to the
United States --
(FIREWORKS SOUND EFFECT)
QUEST: Whoa! Ooh! Aah! It's a dazzling display. The rocket ship, markets are soaring past 17,000. Job creation is moving higher as five
consecutive months of job growth. Aah! Ooh! That's of course one of them. Now, what a shame. The eurozone.
(FIREWORKS SOUND EFFECT)
QUEST: Shoo! Hm. Ew. Ugh. Nearly. Well, what you've got there, of course, is the Catherine Wheel, which goes round and round and round and
round, and creates a lot of heat and a lot of noise, but it never actually ends up going anywhere. The Catherine Wheel.
And then the United Kingdom, our fireworks there. Oh, a nice little sparkler! It gets bright very quickly. It makes a lot of noise, and you
hope it doesn't fizzle out before the game really gets going. Aah! Nothing too expensive there.
Finally, it's a case in our QUEST MEANS BUSINESS firework display, Argentina. Stand well back! It's on the brink of default. It's built
like a powder keg, the economy simmering and could go off at any moment. Argentina's locked in a standoff with bond holders, with court. It's
trying to just about annoy everybody.
Now, the country's sending a delegation to New York to meet with a court- appointed mediator. For more, let's turn to our Latin American affairs editor Rafael Romo, who joins us from the CNN Center. Well, our firework
display is going well. Unfortunately, I can't decide whether Argentina is the bomb burst that could take us all down or a damp squib. Which is it?
RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: Well, I think they haven't really been able to find the matches to get it all started, because
they are in such bad shape, Richard.
And let me tell you, the clock is ticking for Argentina, because if the South American country doesn't pay its debt by the end of the month, it
will be in default. In fact, Richard, it's technically already in default, because a judge in New York has stopped all payments to its creditors.
(BEGIN VIDEOTAPE)
ROMO (voice-over): To understand Argentina's foreign debt, you have to talk about vultures, the opportunistic birds that feast on dead or dying
animals. President Cristina Fernandez de Kirchner and Axel Kicillof, her finance minister, have recently been comparing Argentina's creditors to
vultures. They say hedge funds took advantage of their country's struggling economy and feasted on its weakness.
CRISTINA FERNANDEZ DE KIRCHNER, PRESIDENT OF ARGENTINA (through translator): We're only asking for fair negotiating conditions in
compliance with the Argentine constitution and national laws and the contracts we sign as a country.
ROMO: On Monday, Argentina failed to make a $539 million payment to US creditors. This means the South American country is technically in
default.
DAVID BRUCE, INTERNATIONAL BUSINESS PROFESSOR, GEORGIA STATE UNIVERSITY: If you have a default and your currency is overvalued and you're not
selling a lot overseas, then you're going to have a triple whammy there.
ROMO: David Bruce is an international business professor at Georgia State University. He says the problem is that while Argentina has managed to
negotiate its foreign debt with more than 90 percent of its creditors, a small group of investors has not agreed to the terms and are demanding full
payment.
BRUCE: While Argentina was making payments into the bank that would be used to pay off the other creditors to which they had negotiated an
agreement, now the court has been asked to stop that, because the others haven't received their money, who are the ones negotiating for 100 percent
for their bonds.
ROMO (on camera): Argentina has been fighting investors in court for a decade. Last month, the US Supreme Court rejected an appeal to a lower
court's decision ordering Argentina to pay creditors of original and negotiated debt at the same time. Argentina tried to pay its restructured
debt only, but a judge blocked all payments.
ROMO (voice-over): Finance minister Axel Kicillof called the decision "partial and beneficial" to what he called "vulture funds," referring to
the hedge fund that is demanding full payment.
(TICKING CLOCK)
ROMO: The clock is ticking.
ROMO (on camera): What happens if Argentina doesn't find a way to pay its debt by July 30th?
BRUCE: It could cause a default on the payment that they're willing to make to those who have already negotiated a discount. So, it's hard to say
if you'll get to that crisis point.
ROMO (voice-over): A default would devalue Argentina's currency. Its ability to borrow would be seriously compromised, and the country would
again be at the mercy of vultures circling above.
(END VIDEOTAPE)
ROMO: In fact, Argentina's ability to borrow has been diminished already. The lack of foreign investment has reduced reserves of the central bank to
less than $30 billion. And Richard, as you know, Argentina is Latin America's third-largest economy, and the consequences of not paying its
debt can reach beyond its borders.
QUEST: The question, of course is, it can pay the immediate $1.5 billion to these bond holders, even the vulture bond holders. But once you open
that door, it's the amount that you have to pay to everybody else on all the other bonds going back, and that's when it becomes unsustainable. So,
from your talking to people in the country, how do they get out of this?
ROMO: Well, here's the situation, Richard: nine out of ten creditors have already agreed to pay -- listen to this -- to be paid 30 cents on the
dollar. There's only about 10 percent or so who want a full 100 percent payment, and that's where Argentina has a problem, because the government
says if we pay them 100 percent, then the other 92 percent, that's the actual figure, will want to get --
QUEST: Right. Exactly.
ROMO: -- paid 100 cents on the dollar as well.
QUEST: And that's the problem. Keep watching for this -- for us, please, and come back when there's more to report. I appreciate it. Many thanks,
indeed.
Mark Carney, he is the governor of the Bank of England, that much you know. He is now about to get into trouble, or could do, with the ECB, and Mario
Draghi's got nothing to do with it. It's the English and Whales Cricket Board. Cricket is firmly off the agenda at the Bank of England. We'll
explain why in a moment.
(COMMERCIAL BREAK)
QUEST: As Barclays Bank faces new allegations of fraud in the US over dark deep pools, the bank's setting up an academy to teach its compliance
employees right versus wrong. Think of it as a business ethics boot camp for more than 2,000 employees who work in the compliance area.
It's more than a year since the chief exec, Anthony Jenkins, told the staff to uphold Barclays' values or leave in the wake of libor scandal. Now, the
head of compliance at Barclays says the academy aims to change the culture at the bank, and in doing so, the industry.
(BEGIN VIDEOTAPE)
MIKE ROEMER, HEAD OF COMPLIANCE, BARCLAYS GROUP: It is a program designed to kind of change the dynamics of compliance at Barclays, what it means to
be a compliance officer, and how, in fact, our compliance officers interact with the business on a daily basis.
It is a partnership with Cambridge Judge Business School. And we're very excited about it, because we think it is, in fact, leading edge, and we're
very, very excited about how it might have impacts for the entire financial services industry in the future.
QUEST: Because what's fascinating, if we read, for example, just last week or this week, the BNP Paribas case in terms of the sanctions issues, time
and again, compliance offices did say this is wrong, we may have an issue here. Now, what you're saying is that the compliance officers, if you
train them better, give them more power,s they will be more effective.
ROEMER: That's exactly what we're saying. I think, historically, compliance has been a rules-based -- more of a police function in some
firms. And the fact of the matter is, there is a component of that specialty that is still required. There still needs to be a check-and-
challenge component to any compliance function.
But we believe, based upon the changing environment, the changing regulatory landscape, and the changing expectations of our customers, we
have to be much more focused on mentoring the business and influencing their behavior.
QUEST: Antony Jenkins said in an e-mail only last week -- last month -- "I've always made it clear, cultural change will take time. It's precisely
instance such as this which drive home the urgent need of such programs." So, I ask you again, how do you reset the moral compass of those people who
thought it was OK to do wrong?
ROEMER: You hold people accountable. You change the incentive process in an organization. You elevate the role of compliance so that it is an ExCo
member and the fact -- and has access, direct reporting lines to the CEO as well as to board committee chairmen.
You make sure that sales incentives go away. You make sure that people who do not behave in accordance with your values and do not exhibit the right
behavior as it relates to customers are held accountable and that you take swift action to make sure that you are, in fact, very much focused on
holding each and every person accountable for their actions. And you take swift action when they don't.
QUEST: I can hear the cynics say, they would say that, wouldn't they? They've been fined very heavily. They've got still some extremely serious
outstanding allegations, which could still cost them a great deal of money.
So, I guess it's really up to you -- not you personally, obviously -- but it's up to the bank now to prove the cynics wrong.
ROEMER: Absolutely. It's absolutely our responsibility to demonstrate all the things that you hear us talk about. This compliance academy is another
component of an elaborate program, which will take some years to do. We will still have bumps in the road, but I think the true judge of us is how
do we react to bumps in the road?
(END VIDEOTAPE)
QUEST: Now, most European markets close slightly lower on Friday. Australia's stock market fell more than 3 percent. I beg your pardon,
never mind for Australia. Those markets right there. Anyway, it was Austria.
And the Erste Group bank shares plunged 16 percent on news of loss this year. The bank cites challenges on its business in Hungary in Romania as a
reason for this. It's a major lender in Eastern Europe.
Banking regulation has taken on a whole new meaning in London. Regulations are now not to do certain things. Mark Carney, the governor of the Bank of
England, has scrapped cricket from the Bank of England's sports day. Now, it's a tradition for the bank to host a cricket match at its annual summer
party.
This year, Mr. Carney says he's taking his bat home. Instead, there'll be more inclusive games, like obstacle courses, rounders, football, and all
those sort of jolly things. Carney's favorite sport is supposedly ice hockey which, as a Canadian, of course, is good for him, but good luck
trying to get them to play that at an English summer party in the middle of nowhere.
Andrew Miller is the editor of "The Cricketer" magazine. He joins me from London. Andrew, I know it's a cliche, but I guess you would say it's just
not cricket to ban cricket at the summer part.
ANDREW MILLER, EDITOR, "THE CRICKETER": Absolutely. Preposterous this is. How can a man do such a thing? But seriously, it's a peculiar one. I
think everyone knows that cricket is very much a central theme of the English summer, and if Mark Carney wants to ingratiate himself with people
he has to work with in the banking industry in England, getting rid of cricket is not going to do that. I think it's --
(CROSSTALK)
QUEST: Yes, but it's elitist! It's elitist, it's got a funny language. Look, I'm not a cricketer and I don't particularly like the game, so you
and I may disagree on many issues here, but it's elitist, it's got a funny language, it's public school.
MILLER: I agree with all of that, actually. I do agree with all of that, so I think cricket has got an image problem, has had for pretty much its
entire existence, that it is a bit of an exclusive club. I mean, there are only ten countries in the world that play it properly.
And if you've seen the news recently, that effectively has been reduced to three after the meeting in Melbourne this week. The ITC decided that
basically the only people who are worth playing cricket are the ones who make the money out of cricket.
So, yes. On the one hand, I do agree, there is an elitist issue with cricket, so I think if Mark Carney wants to make a mark, he's certainly
done it.
On the flip side, and kind of interesting here, his predecessor, Mervin King, was obviously a massive cricket fan and also did an awful lot -- and
they still do an awful lot of good to try to scotch that elitist myth. He works for an organization -- he's president of Chance to Shine, which is
basically an institution that's trying to regenerate cricket at grass roots in England.
And a couple of weeks ago, there was an event to mark the 2 millionth child in state school cricket that had been introduced to cricket. And he's a
great advocate for the leadership quality --
QUEST: Right.
MILLER: -- that it helps to create. So, you can argue both ways. Yes, it is an elitist sport, it does require massive open spaces, and Rowant is a
lovely ground, I've played there myself, it's a very nice place to be.
But on the flip side, if he's trying to break that myth and break that mold and he's trying to introduce the game to further field in England.
QUEST: And I can't say that I actually -- I have to say -- I can't say that I find obstacle courses, rounders, and football or soccer -- I'm so
confused, Andrew, I tell you. Being here in the United States with the soccer and the football. And now I've got cricket with you. I'm a bit all
at sea in all of this. If I gave you a choice to watch tonight a game of cricket or the World Cup, which would it be?
MILLER: Well, obviously, I'm going to say cricket. But I mean, I must have the World Cup on in the corner of the room, so --
(LAUGHTER)
MILLER: -- you learn from that one. But yes, the World Cup is a great occasion. It is a great --
QUEST: Right.
MILLER: -- spectacle that obviously embraces every country on the planet, which is great. But you can't argue that the problems at FIFA aren't the
similar sort of problems that beset cricket. Basically, it's an elitist organization that is trying to siphon off the cash and the money.
Basically every institution that operates in the world seems to operate along those lines these days. It just so happens that cricket doesn't have
enough people who play it to any particular standard across the world to make it work in that same way.
QUEST: All right, sir. Thank you. Next time I'm back in London, I -- take me to a cricket game and introduce me to the joys and loves of
cricket, and maybe we can get the governor to come along with us.
(LAUGHTER)
MILLER: Absolutely. Well, it is the greatest sport on Earth, I'm bound to say that. But it's lovely.
QUEST: Right.
MILLER: And I'm a great fan.
QUEST: Thank you, sir. Now, @RichardQuest, whether it's cricket or sport. I would give you an update on the World Cup at the moment, Brazil and
Colombia, but I'll give you that immediately after the break.
Shortly in a moment, eight months after Typhoon Haiyan that's destroyed large swathes of the Philippines, the country's finance minister is going
to be here and talking about how the country is getting back on its feet, or at least that part of the Philippines. It's QUEST MEANS BUSINESS.
(RINGS BELL)
QUEST: Good evening.
(COMMERCIAL BREAK)
RICHARD QUEST, CNN INTERNATIONAL ANCHOR AND REPORTER HOST OF "QUEST MEANS BUSINESS" SHOW: Hello, I'm Richard Quest. There's more "Quest Means
Business" in a moment. This is CNN, and on this network the news always comes first.
There's been violence on the streets of Jerusalem as Palestinian mourners buried a teenage boy. Palestinian medics say more than 60 people were
wounded in clashes between Palestinian protesters and Israeli security forces. Israeli police say 13 officers were hurt. The Palestinians
believe 16-year-old Mohammed Abu Khdeir was killed in retaliation for the murder of three Israeli teens earlier in the week.
A teacher in Southern France has been stabbed to death in front of her classroom full of young children. Police say she was killed by the mother
of one of her pupils. It happened on the last day of school before the summer break. The victim was 34 years old and had two children of her own.
The former editor of the "News of the World" tabloid paper Andy Coulson has been sentenced to 18 months in prison for his role in Britain's phone
hacking scandal. Coulson was convicted last week of conspiracy to hack phones between 2000 and 2006 while he was editor at the newspaper. The
paper has since been closed after the scandal emerged.
Germany have knocked out France in the World Cup, beating them by 1 goal- nil in the first of the quarter finals. Mats Hummels scored the only goal of the game. In the other game currently taking place, Brazil a 1-nil-er
against Colombia. All right, just watch. Ugh. The other straight sporting contest Joey `Jaw' Chestnut has retained his title as Nathan's
Famous Hotdog Eating Contest. It's one of the most famous traditions in New York. As the U.S. marks Independence Day, he ate 61 hotdogs in ten
minutes.
Eight months after Typhoon Haiyan devastated the Philippines and the government is now focusing on restoring lost livelihoods. The Philippines
finance secretary told me the government's speeding up investment in infrastructure. It's already rebuilt half the million homes destroyed.
Last November's typhoon claimed thousands of lives and flattened entire villages. The loss and destruction of part of the fabric of the region was
an average of 20 powerful storms hitting every year. The Philippines finance secretary says the government is working hard now, not only to
repair the physical damage, but also of course to ensure livelihoods and economic performance.
(BEGIN VIDEOCLIP)
CESAR PURISIMA, PHILIPPINES FINANCE SECRETARY: Well, it's never quick enough but we're working double time to make sure that we address all the
needs of the typhoon affected the area. In terms of shelters, over 1.1 million houses as you know were damaged. Of that, about half has been
repaired. Not just by the government, but all the sectors that has been helping. This has been a massive public/private partnership. In fact, one
of the things that we've done is to split the region into 24 sectors and basically assign each sector to a private entity. And the key really is to
make sure they are connected --
QUEST: Right.
PURISIMA: -- to the marketplace so we can start livelihood in the areas.
QUEST: What is it that people need most now? Because to a certain extent, rebuilding and repairing houses is just a product of how much money you
want to spend. But rebuilding societies, finding jobs for displaced businesses - that's much more difficult.
PURISIMA: Exactly. In fact, Dadahaya (ph) which was devastated was a coconut-based economy. And as you know, a lot of the coconut trees were
destroyed and it takes five to seven years to grow. This offers a challenge as well as an opportunity for us, and that is the first priority
- to make sure that we start the livelihood in the area. And that's the reason we broke it up into 24 sectors so that we can focus on creating cash
crops in each of these 24 sectors.
QUEST: If we now talk generally, emerging markets and many markets are not extremely concerned on the wider economic issues. The U.S. is tapering,
Europe is still sucking in capital. The real threat of course for economies like yours is that this rotation out of your economies elsewhere
now picks up steam again as we move to the second half of this year. Are you worried from these - on this - global front?
PURISIMA: Well, all countries are affected by the tapering, but the Philippines is affected less than others because the driver of our growth
has mainly been consumption. And we can sustain consumption because the Philippines is a structural (inaudible) surplus country. Increasingly also
we've been accelerating infrastructure investment, both from the budget of government as well as private/public partnerships. And this should help
balance out our growth target which is 6.5 to 7.5 percent this year.
QUEST: But you'd agree that for a man in your job, these are extremely challenging times.
PURISIMA: It is. It's a volatile times and that's why it's important that we focus on the fundamentals - making sure that we continue to strengthen
the pillars upon which the Philippine economy stands.
(END VIDEOCLIP)
QUEST: That's Philippine's finance minister. In a moment, China's richest man tells us what's on his company's shopping list, and says it might even
include CNN.
(COMMERCIAL BREAK)
QUEST: We introduced you to Wang Jianlin yesterday, the chairman of Dalian Wanda, and China's richest man. While he's already a big name in China,
soon that could extend around the world. Andrew Stevens has more on this man's global ambitions.
ANDREW STEVENS, ANCHOR AND CORRESPONDENT AND CO-HOST OF "CNN NEWSROOM, LIVE FROM HONG KONG": As Hollywood looks East to a massive potential new
audience, China itself is gearing up to get its own slice of the action. A star-studded red carpet event held last year for the launch of a planned $5
billion studio complex in the city of Qingdao bankrolled by this man. Wang Jianlin, China's riches man and founder of the country's biggest commercial
property developer, Dalian Wanda. Both the company and Wang are household names in China, but now he wants to go global.
WANG JIANLIN, CHAIRMAN, DALIAN WANDA, TRANSLATED BY STEVENS: Our goal is to make Wanda brand like Walmart or IBM or Google, a brand known by
everyone in the world, a brand from China.
STEVENS: An ambition apparently matched by spending power. Earnings at Wanda last year hit $30 billion U.S. dollars. The goal is to hit $100
billion by 2020. And Wang says the profits generated from property are his springboard to the world. The real estate industry has given us the
opportunity to accumulate capital. We have decided if there are opportunities in culture or entertainment as you would call it or retail
and luxury hotel management, we will not hesitate in purchasing them.
So far Wang has made two international acquisitions. In 2012 he bought the biggest movie house chain in the world - the U.S.-based AMC for $2.6
billion. And if it's good enough for James Bond, it's good enough for Wang. He followed up last year with a modest $500 million-dollar purchase
of the British luxury boat maker, Sunseeker. Tourism is also a target, one that has been buying property in Europe and the U.S. with an eye to
developing five-star hotels. European design. In Wang's grand plan, by 2020, Wanda's overseas businesses will be earning about a third of that
$100 billion turnover. Are you looking at a big brand name at the moment, a potential takeover target?
JIANLIN: Our investment department and investment banks are in negotiation with many companies. There's nothing confirmed yet. But you can go back
and ask your boss if CNN is looking to sell itself. I can buy it too.
STEVENS: It's said with a smile, but this self-made billionaire is deadly serious about establishing Wanda globally. For him, it's all about the big
picture, and his big picture is now the world's. Andrew Stevens, CNN Dalian, China.
(END VIDEOCLIP)
QUEST: You have to admire the way Chinese business leaders always manage to just unnerve you right at the end. Alexandra Steele, is at the CNN
World Weather Center. Good afternoon. Look, I can see this very nasty- looking -
ALEXANDRA STEELE, METEOROLOGIST: Yes. (LAUGHTER)
QUEST: -- actually it looks rather - I'm flying out tonight from New York going to London, but I think this is far enough south - it's not going to
be too disturbing for me.
STEELE: Well, this is where it was, though, Richard. So I want to show you, yes, so you won't be impacted most lightly by the flights. Because
New York will have some rain, but the rains will be largely less - yes - less than they were. So this is what happened, made landfall - first
hurricane of the Atlantic hurricane season. Actually first hurricane to make U.S. landfall since 2012, and that was in Louisiana. So, it made
landfall as a cat-2, last measured about 12:15 in North Carolina with a wind gust to 160 kilometer per hour wind gusts. So pretty voracious. It
is weakening now.
Here's where it's going - right now the center of circulation about 250 southwest of the Cape and Islands of Chatham, Mass. on Cape Cod. We're
going to see it go like this - move northeasterly. We do have tropical storm warnings now for Nova Scotia and Newfoundland, so they will feel
tropical storm force winds, but it is certainly weakening and the worst is over certainly for the Eastern Seaboard.
All right, in Europe we do have a lot of clouds and showers, a very unsettled weather and a lot of big sporting events going on. So as we look
towards Saturday and Sunday, kind of lined rain after rain makes its way in with some kind of strong winds as well. But the Tour de France -- that
starts on Saturday, so the first stage you can see it starts here and leads and goes down to Harrogate. But what we're going to see here is
temperatures about 16, so it starts at noon on Saturday - 16 degrees. And you can see it looks like mostly sun, but actually in the morning hours, we
will have clouds and showers but it looks like it clears by the noon start time. And this is where it ends at 17 degrees, sunny skies as well.
Twenty-three days, two rest days and it's actually the most geographically- diverse race they've had in years and you can see kind of the topography of it, the highest point being about 532 meters. So usually the beginning is
kind of the flattest.
All right, also Wimbledon - how about the final weekend of it? And a little problematic. Of course there's a retractable roof but it takes
about 30 to 40 minutes for them to open that and kind of allow the air to circulate in there, and you can resume match - make play. But on Saturday
we'll have 21 degrees, clouds and showers so that roof may be closed, we'll have to watch that. Of course it's the Women's Finals, also the Men's and
Women's Double Finals, but then Sunday beautiful conditions -22 degrees and sunny skies. All that rain will have moved out.
In terms of the World Cup - I told you there was a lot of sports. First match Saturday we're going to have nice conditions - 25 Argentina, Belgium
no problems at all in Brasilia. But in Salvador for this match, rain coming - 24 degrees - Netherlands versus Costa Rico with winds at 17,
Richard. So, a lot of sporting events and kind of a lot of kind of hit and miss with the rain moving in and out.
QUEST: More rain in Salvador. Thank you very much.
STEELE: You're welcome.
QUEST: Thank you very much, joining us at the World Weather Center. Now, this - these - pictures are both disturbing and also intriguing in then at
the same time they're just absolutely fascinating - underwater footage from inside the sunken Costa Concordia has been released by the Italian police.
Thirty-two people died when the cruise ship sank off the coast of Italy in 2012. It's been resting ever since there.
The ship has since been up-righted and we're now getting the first view of what it looks like inside. Here's CNN's Matthew Chance.
(BEGIN VIDEOCLIP)
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT BASED IN LONDON: These are remarkable new images of the stricken Costa Concordia. Italian
police released the footage recorded by their divers, giving us an unprecedented glimpse of the sunken ocean liner. Its giant hull twice the
size of the Titanic's struck rocks off the Italian coast in 2012 with 4,200 passengers and crew onboard. Thirty-two of them lost their lives.
Inside the ship the divers record an eerie snapshot of that horror. Through the murky water smashed doors and seeking areas can be made out.
Even a bar or reception desk on what was meant to be a pleasure cruise but turned into a nightmare. Finally, the divers reached the ship's ornate
central atrium, some of which is now above the water line. In the days ahead, a first attempt will be made to refloat the vessel and tow it to
shore. But with the ship's Italian captain accused of causing this wreck and abandoning ship, controversies surrounding the sunken Costa Concordia
looks set to remain. Matthew Chance, CNN London.
(END VIDEOCLIP)
QUEST: The 2014 World Cup in Brazil resumed plan. The drama's building as the field gets smaller. We'll be live from Rio in a moment.
(COMMERCIAL BREAK)
QUEST: The quarter finals underway in the 2014 World Cup - seven teams remaining. We do a bit of Vexillology before we are finished. In the
clash of the European powers, Germany defeated France and soon the field will be narrowed to six. Brazil's playing Colombia right now in the battle
of the South Americans. Alex Thomas in Rio joins us to tell us the latest and how this - the matches being played at the moment is going.
ALEX THOMAS, CNN SPORTS CORRESPONDENT: All sorts of fireworks going off along the Rio skyline behind me here, Richard. It's not where the hosts
are currently playing Colombia - they're in Fortaleza. But the whole country's tuning in and most of the world as well because Brazil tend to be
people's second favorites such as the stall (ph) on which they play their football. Earlier, here in the Maracana, where the final we played next
week of course - we saw a clash of European Titans.
Let's show you some of the match highlights - France against Germany, France winning the World Cup back in 1998. The Germans of course, three-
time World Champions, and it was the Germans that took the lead through Mats Hummels, a header glancing up from a free kick, and that came even
before the quarter hour mark. And it was the only goal of the game which is surprising considering these two teams have scored 17 in their three
previous World Cup meetings, an average of more than five per game.
Nothing like that excitement in this one - a bit of a yawn fest. Andre Schurrle missing the chance to make it comfortable for Germany towards the
end, and then France is carrying Benzema with one of their better chances to try and equalize and extend this into extra time. I was well saved
though by Manuel Neuer. Germany win 1-nil. Richard, now I was speaking to some of the fans afterwards in the Maracana,. We won't play you what they
said but you can see some of the scenes. A celebration for the Germans. But even the French fans were in quite good moods. They were just happy to
get this far, having had a miserable 2010 World Cup four years ago. The Germans, although they were through, were kind of, `Oh, well you know we're
a little bit lucky.' So it was a strange kind of reaction from the fans - almost the wrong way around to what you'd expect, Richard.
QUEST: As we move forward to the final stages, give me an overview, Alex. You and I've talked before about this. How is this shaping up as a World
Cup?
THOMAS: Listen, I've got - I just had a few audio problems there, so your question was breaking up, Richard. But I think you were talking about
nobody here -
QUEST: Yes.
THOMAS: -- at the World Cup going forward. You know, we're in the halfway stage of this second quarter final. We've got the other two quarter finals
being played tomorrow. Some big names in action there -- Argentina against Belgium. Also the Netherlands who've never won the World Cup before but
runners-up four years ago in South Africa playing Costa Rica - the surprise package from the CONCACAF region - North America, Caribbean and Central
America. Costa Rica have never got this far before. It's a bit like Colombia at the moment against Brazil. Colombia have never been this far
before either, so it's been a bit of a surprise this World Cup. There's been plenty of goals -
QUEST: Right.
THOMAS: -- plenty of excitement. Everyone's really enjoyed themselves. But all the attention is on the host nation because Brazil didn't win a
home sole (ph) back in 1950, all those years ago. They lost to Uruguay in the final. It was called a national tragedy. So they're under huge
pressure to try and make amends this time, and they're doing well so far, currently leading Colombia by a goal-nil, Richard.
QUEST: Now, Amanda of course has done some sterling work in her duties as Vexillologist to this program, and we're hoping that you're - lesser men
and women might be confused by the tree of - as we remove France because you have these here and these here. Which is France? Don't worry, Alex,
I'm not going to ask you this question - go on - are you going to have a go at it? Could you see the -- ?
THOMAS: Well, --
QUEST: Come on.
THOMAS: The French flag is second from the top on the right.
QUEST: Second from the top on the right.
THOMAS: No.
QUEST: Yes, you see - ha ha!
THOMAS: Maybe bottom left.
QUEST: Ha ha! That's my point! It is wrong, Mr. Thomas - Vexollologists of the world unite!
THOMAS: It's bottom left, wasn't it?
QUEST: It was - it's bottom left. Thank you, Alex, that was goodbye.
THOMAS: Sacrebleu.
QUEST: Sacrebleu, indeed! Time to update the "Quest Means Business" Footy 32. I didn't know whether he was going do it - I mean, you can see it's
very - it's - apologies to the French, but it's an easy mistake to make in the heat of the moment for lesser Vexillologists than ourselves. Right,
here we go, Footy 32. Let us do a bit of delisting to begin with. We need to delist - here we go, in we go. Bing bish bash bosh, and there we are
with the current ones. Costa Rica is still at the top, Colombia is still strong, it's still showing the best of them all and you can see why Costa
Rica - because it's 30 million in value of players, 30 million in goals, 60 million is the value of the team as we're putting it at the moment.
In terms of Germany, remember that score they just squeaked through? A billion - sorry I may not ought to be doing it with the French flag. Let's
try the German flag. A billion in value, World Cup increase of $70 million because of the goals scored and conceded and $1.1 billion next. There you
have it, that's the way they're looking. We'll have more Footy 32. I'll have a "Profitable Moment" on Independence Day after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." On July the 4th, it's always a bit tricky being a Brit living in the United States. Lots of jokes about how
they kicked our butts all those years ago and how the Brits lost -
Studio Staff: Woo-hoo!
QUEST: -- yes, yes, yes. Thank you. Heard them all before. But it always sets me thinking about what might've been had King George and Lord
North, his prime minister played their hand a bit better. Could the New World have been retained for the Brits, and if so, would the seat of the
new, enlarged country have moved from London across the Atlantic? Would the British Isles have become an early eastern version of Hawaii, a
territory thousands of mile away from the Motherland - in the U.K.'s case without sun. All too often the rest of the world looks at U.S. and sees it
through the prism of Hollywood and popular culture and ignores the complexities here - a society finding its way through battles of rights,
responsibilities, duties and obligations that many of us have settled elsewhere or leave unspoken. Abortion, guns, same-sex marriage, health
care. So, in the spirit of compromise today, recognizing my U.S. colleagues' great day.
Studio Staff: (CHEERING).
QUEST: A piece of music we can all agree on. They call it "My Country Tis of Thee." I call it "God Save the Queen." And I'll see you on Monday.
(RINGS BELL)
(MUSIC PLAYS)
END
