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Quest Means Business

France Halts Russian Warship Sale; EU Leaders Mull New Sanctions; Ukraine Crisis to Dominate NATO Summit; Ukraine Crisis Hits EU Business Activity; Ukraine Crisis Worries Poland; Investors Cheer Ukraine Deescalation; US Markets Flat, Tech Stocks Down; EU Says No Pound for Solo Scotland; Twitch Goes Global in 24 Languages

Aired September 03, 2014 - 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: The closing bell is ringing at the New York Stock Exchange. ENSCO is ringing the bell. They clearly got the memo

about the red and the blue ties. Today, it is Wednesday, it is the 3rd of September.

France has buckled under pressure. It's putting a stop to the delivery of a warship to Russia.

A warning to Scotland comes today. Say yes to independence and use the pound, and it's no to EU membership.

And think of this as playing a good game. Twitch's chief exec tells me why Amazon won him for a billion.

I'm Richard Quest. Of course I mean business.

Good evening. The West is ratcheting up the pressure on Vladimir Putin as Ukrainian and Russian leaders are announcing progress towards a

cease-fire. The French president has announced it will hold -- it will withhold one of two Mistral Class warships it had agreed to build for

Russia.

France has been under pressure to cancel the $1.6 billion deal. EU leaders are also considering broader sanctions, which could be adopted

later this week. Join me at the super screen and I'll show you the sort of measures. This will be the fourth round of sanctions.

Now, the list is being prepared at the moment, the Council has to accept them, and then it will be gazetted in the European Union official

journal. Some of the things you're looking at now: further capital restrictions that would limit Russian financial institutions to the

European capital markets, and that could also reduce the maturity of instruments that they can buy or borrow.

Then they've also got limits on defense goods that could have a military and civilian applications. Some of that's already been put in

place, but there could certainly be more, and that would have a very serious impact.

And possibly boycotts on sporting and cultural events. Rumor is that the 2018 World Cup could be on the list, but best opinion suggests at the

moment that the World Cup has not been discussed as a potential boycott target against Russia.

NATO's meeting in Wales over the next few days. Our senior international correspondent Nic Robertson is watching the developments

ahead of those summits. He joins me now, live from Cardiff.

This is very complicated, now, because we've not only got the Syria, ISIS, and those issues, which of course are not really NATO-specific, but

NATO has to have a, if you like, a watching eye over this because there's military aspects. But NATO is concerned with defense spending from

European countries.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It is. What all the NATO nations, 28 of them, are signed up to is a pledge that they

will spend 2 percent of their gross domestic product on defense, and there are only a tiny handful of nations that do.

The United States is top of the list with about 4.4 percent, Britain with about 2.3 percent, and you can very much expect President Obama, who

will be arriving here in Wales very soon, to be looking to those European partners in NATO and asking them and expecting them to put more money into

their defense spending.

And one of the reasons is going to be specifically because there is going to be a ratcheted-up effort to send a message to President Putin and

a message of reassurance to the Baltic states and Poland and other Eastern European countries that NATO stands behind them, and that's going to cost

money.

It's going to be manifest in bases that will have pre-positioned equipment and a rotation of NATO troops through those bases. It will all

cost money, so absolutely, NATO will have to dip into its pockets more. Not clear what kind of commitments President Obama will get in the short

term, though, Richard

QUEST: When the president and -- when they get to these summits, the groundwork has usually been well done in advance. Except in this case,

it's a moving target, literally, because of course, they don't know -- so how much still actually has to be agreed at this summit rather than left to

chance?

ROBERTSON: We've been told quite a lot of what to expect, and part of that has been the saber-rattling to put President Putin of Russia back in

his box and out of the east of Ukraine. What we've been discussing here, these bases, these rotations of troops, this more quick reaction force

that's going to be prepared.

But we've also learned today about Operation Rapid Trident, a thousand international troops, 15 different nations, 200 troops possibly from the

United States on a peacekeeping operation in just two weeks inside Ukraine, a message for President Putin.

So, that's come as a little bit of a surprise here. It was delayed from earlier in the year. But the script has been set for some time.

Three things on the agenda: Afghanistan, we're seeing a draw-down of international troops, NATO's biggest overseas commitment, draw-down, change

of role, change of operation, more training, more assistance, that sort of thing.

Then, obviously, the Ukraine issue. We've addressed that.

QUEST: Right.

ROBERTSON: And then the future of NATO, and it's perhaps under the future of NATO agenda, although no specific meeting has been set for the

discussion of ISIS or tackling ISIS's growth in Iraq and Syria.

So, the agenda's been set, it's been a moving target, but you can be sure absolutely -- and President Obama wants to do it -- build a coalition

of support to take on ISIS, and that will be discussed in the margins, over dinner at the banquet at the castle here in Cardiff on Thursday night,

Richard.

QUEST: Beautiful city, a wonderful place to meet, Wales. You're enjoying it at the end of the summer. Nic Robertson joining us from the

Welsh capital.

The difficulties of course, it's another economic blow Europe can ill- afford. Business growth in the eurozone has slowed to its worst level this year, you and I have talked about that several times on this program.

Speaking to me earlier, the OECD secretary-general said the timing of sanctions and the crisis of Ukraine is magnifying Europe's economic

problems.

(BEGIN VIDEO CLIP)

ANGEL GURRIA, SECRETARY-GENERAL, OECD: I think the situation in Eastern Europe and in Ukraine in particular is very threatening and very

ominous. But I also have to tell you the timing is terrible.

This question of confidence and trust, it takes just a flicker or two to destroy what you've built over decades. And this lack of trust and this

lack of confidence in everything we've built over a hundred years, we were -- it took so long to build it back, or at least partially build it back.

And then comes this very serious confrontation in Eastern Europe, reminiscent of other decades in the past where Cold War and everything, and

with actual war going on or military confrontations going on on the ground.

So, clearly this has an effect. Add to that the combined or cumulative impact of both sanctions and counter-sanctions, tit-for-tat, et

cetera, we are clearly in a very serious situation today. And the problem is at this moment at least, it does not seem like there's a solution in

sight.

(END VIDEO CLIP)

QUEST: We have more from Angel Gurria on the jobs question in just a moment. Now, Poland is watching the tit-for-tat sanctions between the West

and Russia very closely. Warsaw has been critical of the NATO response to the crisis, and you can see the difficulty that Poland has at the moment.

Take the country -- on the eastern side,of course, you've got Ukraine and you've got Russia. So, it's feeling the military and the political

effects of what's happening over here.

But Poland also has to be seriously concerned about the slowdown in the eurozone and in the European Union, of which it's a member -- of the

union, not the zone -- because of the slowdown in growth from Germany and other countries there.

Put that together, and you realize that Poland is nut-crackered in between these two forces at the moment. I spoke to the former Polish prime

minister, Jan Krzysztof Bielecki, and I asked him how concerned, looking at its position, he was about aggression from Russia.

(BEGIN VIDEOTAPE)

JAN KRZYSZTOF BIELECKI, FORMER PRIME MINISTER OF POLAND: We are, of course, concerned, firstly because we belong to the so-called Solidarity

generation, and Solidarity movement, which starting from 1980 strongly believed in this part of the world, in Eastern Europe, each nation has its

right for self-determination.

And we stood for Polish independence during the famous Solidarity 16 months. We failed. And then again, in 1989, we tried, and today, we

benefit from prosperous democratic and Western-oriented and, of course, independent Poland.

And we strongly believe that must be a general rule for all the Eastern European countries, including Ukraine.

QUEST: Do you think NATO has to come up with a strong, robust response that really makes clear to President Putin, if he continues with

this military adventure, there will be a repercussion? But they have to mean it.

BIELECKI: Yes, I could not agree more. We in Poland, we strongly believe in NATO. We consider NATO as the most successful international

institution since the end of the Second World War. And I think Mr. Putin also recognizes the importance of NATO and NATO summit this week.

And probably that's why he proposed something what he's obviously not engaged in, which is the cease-fire with Ukraine.

QUEST: Donald Tusk is about to take over as the European Council president. He's said and officials have said there are three priorities:

there's Ukraine, there's the economy, and there is, of course, the UK question, which will come up after the UK's election next year. What sort

of council president will he be?

BIELECKI: Donald Tusk, first of all, is sending a very clear message that Europe is breathing with two lungs, as former pope John Paul II said,

that Europe is of two lungs. It's of two parts, Western Europe and Eastern Europe.

And the new members could claim quite successful victory that the representative of the region is taking over such an important position.

So, it's good for Europe, good for the region, and of course, good for Poland.

(END VIDEOTAPE)

QUEST: Coming up in a moment on QUEST MEANS BUSINESS, not so fast. One of the EU's top politicians now tells Scotland if it wants to go solo,

it can't use the pound sterling.

(RINGS BELL)

(COMMERCIAL BREAK)

QUEST: Now in some quarters, Europe have been -- investors cheering progress towards a truce in Ukraine. Although American and Russian leaders

have downplayed the developments, the stocks right. Have a look at this.

In this whole market, where you've got Germany up 1.25, the FTSE up half a percent, but you get down there to Russia's index, the MICEX show --

rose some 3.5 percent. Good strong gains on the possibility and prospect of a deal that has been done.

The FTSE at 6873 has hit a 14-year high. The S&P 500, it hit an intra-day, but it fell back just a smidgen or two, and indeed, you start to

see a little bit of the volatility and uncertainty in the market. You have the broader market down a tad, you have the techs down a tad, but the

narrow market, the industrials were up just a smidgen, too.

Alison Kosik is with me. When we see -- I mean, I'm not surprised. Look at this. Just very good gains at the open, a twinkle away, a little

big of a negative there --

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes.

QUEST: -- and it --

KOSIK: And you saw a lot of what you saw --

QUEST: Yes.

KOSIK: -- in the overseas markets is you saw the joy at the open over this possible Ukraine-Russia cease-fire.

QUEST: Right.

KOSIK: And then you saw sort of reality set in about what's happening in Europe. Also throw in a bit of reality, techs certainly brought down

stocks as well. But you saw a flat end to the day.

There's a lot of caution right now, because everybody's waiting to see what Mario Draghi's going to do --

QUEST: Tomorrow?

KOSIK: -- with the ECB on Thursday. Everyone wants to see what the jobs report's going to look like on Friday. So, waiting on those two

things this week, Richard.

QUEST: In that environment, we've -- it's almost we'll be into the quarterly reporting season --

KOSIK: Right.

QUEST: -- before we know where we are.

KOSIK: Exactly. And what's worrying investors, it's the stronger dollar. That is certainly what's worrying investors as far as what

companies are going to start reporting.

QUEST: So, what do they do in this environment?

KOSIK: Well, they sit on their hands and they wait, don't they? At least we saw that happen today.

QUEST: That's the definition of what happened today.

KOSIK: Right. Then they sat and waited.

QUEST: Yes.

KOSIK: Now we'll see what the ECB does Thursday, we'll see how the market reacts to that, we'll see what the jobs report is here in the US,

we'll see how the market reacts to that.

QUEST: I say Draghi tomorrow talks a good game and doesn't --

KOSIK: Doesn't --

QUEST: -- do anything.

KOSIK: Yes, I agree, and analysts agree with you, Richard. Yes.

QUEST: Whether he should, that's another --

(LAUGHTER)

QUEST: Thank you. Let's stay in Europe. Scotland must choose between independence and keeping the pound sterling. That's if it wants to

be part of the European Union. It's a warning from the former EU economics commissioner Olli Rehn.

We know all this because of letters exchanged between him and Danny Alexander, Britain's number two at the treasury. On the left, Mr.

Alexander, perhaps mischievously asks if the EU would allow an independent Scotland to join and unofficially use the pound as its currency. London

said it will refuse official permission.

Nationalists have long argued they don't need London's permission. It's known as sterlingization. They just use the currency regardless.

Olli Rehn says, "As to the question of whether Sterlingization were compatible with membership, the answer is it would simply not be possible."

Sounds confusing, but the long and short of it is, when they go to the polls in Scotland in two weeks' time, they don't know what the outcome will

be for the currency and which currency they'll be using.

Danny Alexander is a longtime advocate with staying in the UK. He was pleased. I asked him if it matters when patriotism's at issue.

(BEGIN VIDEOTAPE)

DANNY ALEXANDER, CHIEF SECRETARY TO THE UK TREASURY: I think it's important that before we make up our mind on this most important decision

that we'll ever make that we have all of the facts before us.

And the failure of the nationalist campaign to come up with a credible argument on currency is one of the biggest holes in their argument. And

what Olli Rehn said to me, which is that if you try and keep the pound in its weaker form, a bit like, for example, Panama uses the US dollar, that

that's incompatible with EU membership.

I think it blows a further hole in the economic argument that the nationalists make. So, I think it is a powerful contribution, and I think

it reminds people that there are huge economic risks that are incumbent on independence, economic risks that will cost people money through their

mortgages, through taxes, and so on. And so, I think for that reason, it's a very important intervention.

QUEST: Don't you worry that the -- what I think you described as the obsession with nationalism by some on the yes campaign, has an appeal, has

an attractive appeal to a patriotic view that says, well if they say we can't use the pound, stuff 'em, we'll just see what happens anyway.

ALEXANDER: Well, I'm a patriotic Scot, I love Scotland, I'm a Highlander born and raised, and I make these arguments because I want the

best for Scotland. That's the same is true of my colleagues in the Better Together campaign.

The issue here is, what is the best way to secure the prosperity for people in Scotland? What is the best way to grow our economy here in

Scotland? What is the best way to support businesses to create jobs here in Scotland? To none of those questions is the best answer independence.

And so, I think it is right that we spell that out, that we spell out the real consequences of independence. Because so much of the case that is

made by the nationalists is based on supposition and on massive exaggeration of supposed economic benefits of independence.

QUEST: If the vote goes against you, you're going to have to live with this the day after in the sense that as chief secretary to the

treasury, you're going to have to be, along with your colleagues, negotiating the way out of this mess.

I realize you're probably going to sort of suggest that you're deal with that if and when at some point in the future it happens, but there has

to be a Plan B for both sides.

ALEXANDER: Well, there haven't been any kind of contingency plans put in place. There would have to be negotiations in the event of a yes vote,

of course. I think the important thing to say is all sides must fully respect the result of this referendum and act on it, whatever way it goes.

And I would certainly commit myself to doing that. But there is no doubt that if we do vote for independence, that it will be a very risky,

uncertain, and difficult journey.

(END VIDEOTAPE)

QUEST: That's Danny Alexander, and Scotland goes to the polls on its referendum on independence on September the 18th.

Amazon had an itch for a Twitch and Twitch for an itch, and it was all bought for a billion dollars last week. It took the business world

surprise. The Twitch founder admits even he's amazed by the company's growth.

(COMMERCIAL BREAK)

QUEST: A week after it was bought by Amazon for a billion dollars, Twitch is now going global. The service that turns video games into an

online spectator sport is available in 24 languages, 14 more in the latest update of the Twitch Xbox 1 app. In a statement, the firm says it dreams

of a world where Twitch is used by people in every country.

The company's amassed 55 million monthly users, an extraordinary number. And until recent sale to Amazon had done so very quietly. Twitch

users account for 43 percent of all live streaming in the United States, in first place by a country by a mile. It's more than twice the number of

viewers who watch professional wrestling, and several times more who watch major league baseball on ESPN.

I spoke to the Twitch CEO, Emmett Shear, and asked him if we should be surprised at the staggering size of Twitch's audience.

(BEGIN VIDEOTAPE)

EMMETT SHEAR, FOUNDER AND CEO, TWITCH: Yes, if you find people watching people play video games surprising, you would probably find --

watching someone bounce a ball and throw it through a hoop surprising as well. They're both activities where that skill level really shines

through.

Although a lot of what happens on Twitch isn't even necessarily competitive. We actually have a good deal of what I would characterize as

just interactive gaming, where you're hanging out with someone and they're playing a video game, and that's what's going on, but what's actually going

on is you're part of a community of people who are all connecting with each other around that video game.

And that's -- and discussing it and talking to the people who are playing it. And that's a really important aspect of Twitch. I think it's

easy to miss, because the e-sport stuff is obviously really exciting as well.

QUEST: What was it about Amazon versus Google and the other offers you're alleged to have received, or at least overtures, let's be more

neutral about it, that you have probably received over the years. What was it about this final offer that you liked particularly?

SHEAR: I can't speak about rumors in the press or other things like that, but I'm happy to talk about why we were really excited about Amazon.

QUEST: Of course.

SHEAR: And what was exciting to me about Amazon, what really sold me that this was the company that I wanted to be a part of and wanted to work

for was the level of independence and the level of shared vision that we had.

Because I like running Twitch. I really enjoy it. I don't really plan on going anywhere, and so, I was looking for a place where I could

have that support. We get to run Twitch as a fully-owned subsidiary.

I get to stay the CEO, that's amazing for me and for something that I want to do with my career. I think it means that Twitch gets to stay on

the trajectory it's on, we get to keep working on the awesome stuff we're working on.

And I think that the other really big, important thing about Amazon is that when we think about the gaming industry, we both share this vision of

a world where it's much easier for indy game companies -- and for big game companies, too -- to get distribution, to get discovered, to find an

audience. We want to build a place that makes that really easy and really helps grow those companies.

QUEST: So tell me, sir, when was the aha moment? The eureka moment? When the --

SHEAR: With --

QUEST: No, no, not in terms of the deal, but in terms of this is something that's not being done, we've clearly believe we've identified a

vast potential. The sheer amount of internet traffic that is now being generated, the percentage by Twitch is phenomenal.

So, when was that moment? Was it in a very drunken moment when you were all sitting around and somebody said, "I've got an idea. It's not --

you may think it's mad, but I think it's going to work."

SHEAR: Yes. The moment where I -- where I really pushed the company to start moving towards Twitch was back at the end of 2010. But we didn't

know it was going to be big then. I just had this idea, and I thought it was kind of crazy, but I thought it might work.

And so that idea turned into Twitch. The moment when I think I realized, oh, we have something here, this is going to be really big was

when we threw -- I think it was a Reddit invitational tournament, and suddenly we had 30,000 concurrent viewers watching a StarCraft match.

And you sort of compare that to how many concurrent viewers you might get watching a golf match or something, and I said wait, this is

competitive with actual sports. This is huge.

And today, we peak at nearly a million concurrent viewers, which is competitive with big cable networks. And -- but that was the moment back

then when I really realized oh yes, no, this is something that has an audience of people for it who are fanatically devoted to it the way I am.

And like me, this is what they want to watch. And if we provide a great experience for that, they're going to come.

QUEST: And finally, are you surprised by that?

SHEAR: I suppose I should be, because I didn't predict it in advance. But not really, because the reason I started working on it, the reason I

started working on the Twitch idea in the first place, was that that was the content I watch. That was what I enjoyed doing.

And so, it's never really surprised me to find out other people like doing it, too, because I don't think I'm actually that unusual. And so, I

actually wasn't that surprised. I was surprised by the speed and the level of growth. But not surprised other people really loved it.

(END VIDEOTAPE)

QUEST: A fascinating story, and I have to say, until the -- until Twitch was bought by Amazon for a billion, I can't say I'd heard of them,

but it just shows how times are changing.

Now, still to come, a stern warning on unemployment. You're going to hear from the OECD's prescription for a fix on why things are so bad and

dangerous.

(COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in just a moment. This is CNN and on this network, the news always comes

first.

Ukraine's prime minister has rejected Russia's plans for a ceasefire in Eastern Ukraine - calling it a rescue plan for pro-Russian rebels.

Russian President Vladimir Putin is laying out a seven point roadmap to peace in the region. Arseniy Yatsenyuk says his real plan is to destroy

Ukraine and renew the USSR.

Meanwhile, the U.S. and allies are preparing to host snap military exercises in Western Ukraine. The drill would involve personnel from the

United States and Ukraine as well as Britain, Canada and other nations. It's the first major development in deployment of American and foreign

personnel to Ukraine since the conflict in the East broke out.

President Obama is vowing to degrade and destroy ISIS after the killing of the second American journalist. American officials now confirm

that the video showing the murder of Steven Sotloff is authentic. President Obama says the U.S. will not be intimidated and will intensify

the fight against ISIS.

A day after a British nurse infected with Ebola was discharged from hospital, an American has contracted the disease. Dr. Rick Sacra had been

working in a maternity ward in Liberia and was not directly treating Ebola patients but has since contracted the disease.

There's a sharp warning tonight from the OECD, the economic organization of the advanced economies that the jobs recovery in the

world's developed economy is still not up to scrap (ph), and it won't improve much until or even next year. Modest improvement, modest declines

in unemployment. That's the phrase the OECD uses in its report. But if you look at this graph, and I'm going to have to show you, it really does

point a very sobering picture. The EOCD says economic improvement is not creating jobs and unemployment could yet return to sort of pre -

unemployment has not yet returned to pre-crisis levels. You see, this is the pre-crisis level down at 5.7. Look where it is now - these elevated

levels of 6.7/6.8 percent.

Work wage growth is also slowing. Workers are stuck in unstable temporary jobs with no career progression and that has a wider, damaging

effect on the economy. You can just see this number. There's the peak - but look at how the peak has not even begun to make a dent towards the

trough. So the second part of our discussion with the OECD secretary general, I asked and put it - Angel Gurria - persistently high unemployment

is a deep concern.

(BEGIN VIDEOCLIP)

ANGEL GURRIA, OECD SECRETARY GENERAL: It is a very deep concern. When we were at the peak of employment/low unemployment, it was about 5 and

a 1/2 percent. At the peak of the crisis and therefore the trough in terms of employment/peak of unemployment - 8 and a 1/2. So we increased 3 points

on the averages. Well, we are going to be at around 7 percent at the end of 2015, so after 7 full years into the crisis, we will only have picked up

about half the damage that the crisis did on the unemployment front.

So that tells you how resilient this unemployment thing has been and the fact that we have to really address it with all the policy tools that

we have at hand.

QUEST: But it's worse than that in some ways because the situation globally, geopolitically, is deteriorating. And all the, if you like,

confidence-building measures that might help create new jobs, are evaporating.

GURRIA: Indeed, and of course it hides, you know, -- these averages - hide facts like, for example, long-term unemployment as part of the total

unemployed. That has multiplied, and then this other factor that you mentioned. The trust and the confidence at a time where we were building

up the trust and the confidence - it was recover y - and suddenly all these geopolitical elements come in. So you really have a very challenging

situation which was, you know, added to the fact that we -

QUEST: Right.

GURRIA: -- on the employment front still had a lot of homework to do.

QUEST: It's very difficult to get the sort of structural reforms that you've been calling for, whether it's in labor practices, market reforms,

pensions. It's very difficult to get those reforms now. The moment's almost past because other issues have crowded the agenda.

GURRIA: Not at all, Richard. I would say that precisely because the other issues are causing the agenda - because of these geopolitical and

geostrategic uncertainties, we have to accelerate the reforms. And also, because we can't leave it to the Central Banks. You know, everybody's

betting on Mr. Draghi tomorrow to do something that will save the day. Well, the problem is when you're talking about education, innovation, when

you're talking about taxation structure, when you're talking about flexibility in the labor markets and the product markets, these are the

medium and long-term things but they are things that have to be done by governments, not by central banks.

QUEST: Right.

GURRIA: The central bank can reduce and keep interest rates low for a longer period, which I hope they will, and they can finance the banks, the

can fund the banks - medium and long-term at very low rates which they have announced that they will. But, the structural measures which you say the

opportunity has passed - not at all. I'd say if anything, let's get on with it with greater conviction and greater emphasis because they are

needed more -

QUEST: Right.

GURRIA: -- more today than ever before. They are the only ones that will hone the economy, the only ones that will allow us to go into higher

levels of productivity, and that is the only thing that will allow us to recover the wages. The wages are the only thing that will allow us to then

increase the absolute demand, absolute demand will allow us to pick up the growth. So, it's part and parcel of the productivity, competitiveness

equation, and we can no longer simply continue to reduce wages as they have been now for some time in order to solve the problem.

(END VIDEOCLIP)

QUEST: That's Angel Gurria. And now one piece of news to bring you that you might've missed in the course of a busy day - the sole surviving

son of Bernard Madoff who's in jail for his Ponzi scheme -- has died. Andrew Madoff passed away from lymphoma at a cancer center in New York

today. His father of course is serving a 150-year prison sentence for masterminding one of the biggest swindles when he defrauded investors of

$20 billion over two decades. Bernard Madoff's older son committed suicide in 2010 on the second anniversary of his father's arrest. Both sons and

other family members have been sued for more than $200 million in an attempt to recover the stolen assets. Andrew Madoff was 48.

(COMMERCIAL)

QUEST: Now dance music, parties and staying up all night - well it's not the typical business traveler lifestyle - or at least not once you get

to a certain age. And it certainly is not our usual road warriors on the road. However, this particular road warrior travels more than most, he has

to play all night long and he has to be fighting fit to do it all over again - probably the next day or thereafter. He's Gareth Emery, he's a

world-renowned DJ, he crisscrosses the globe - 150 gigs a year.

I thought I knew something about traveling light - Gareth put me right.

(BEGIN VIDEOCLIP)

QUEST: How does a boy from southern England end up being one of the world's top DJs?

GARETH EMERY, DJ AND PRODUCER: Being in the right place at the right time. A small amount of natural talent and a lot of hard work.

QUEST: You are a road warrior, but a very different road warrior to the rest of us.

(AUDIENCE CHEERING)

EMERY: My average in a year ,- 150 gigs, about 200 flights and that's all over the world. A combination of long-haul, short-haul, commercial,

private, you name it I've probably done it at some point.

QUEST: What sort of a packer are you?

EMERY: Ultralight. I mean, I've traveled for five/six weeks with one carry-on roller board and one laptop bag and that's it.

QUEST: Show me what/how you've packed.

EMERY: Tee-shirts, cap, both headphones - always the good ones - gym trainers.

QUEST: And that's it?

EMERY: That's pretty much it. The most efficient way to pack clothes for a trip is you work out for your outfit every single engagement. So I'm

very adept changing out clothing on the road - a combination of using hotel laundry and just throwing a pair of shoes away and buying new ones. I

mean, for me, that sacrifice is worth not having to check bags in. Laptop - in here which is actually what all the music is in title (ph). It is

(inaudible) which is amazing. Spare microphones, video connectors for when we're running visuals.

QUEST: You've got a lot of tape in there.

EMERY: They look pretty amateur, but this is what the laptop rests on so a bit of tape will be legs for the laptop to go on.

QUEST: Your professional future is that?

EMERY: Music supplied to 50,000 people from that.

QUEST: Obviously it's personal business class travel wherever you're going.

EMERY: Yes. British Airways tends to be my standard long-haul airline. So, 64A and K are my two preferred seats on the upper deck of the

747. Old but trusty. It turns into my little flying studio. Get out the laptop, headphones and playing music undisturbed for (inaudible) hours,

and, you know, I love it. People tend to think of DJs as party animals who stay up all night getting wasted. I realized, I guess three or four years

ago, when you do 150 shows a year, you can't party 150 shows. You'll kill yourself. And I want to make it past 35, and -

QUEST: You're middle-aged!

EMERY: Exactly. So I can be in a car on the way to a venue, quite frankly thinking I wish I was still in bed. I'm tired, it's my fifth night

playing in a row, and then when you get back stage and you hear the roar of 10,000 people who have come out to see you, that does something to you. It

feels natural, it feels right.

(END VIDEOCLIP)

QUEST: And we thought we had difficulties in our "Business Traveller" lifestyles. That puts it into perspective. Land Rover is putting its

rugged pedigree up against the world's most luxurious SUV makers. The company's unveiled its Discovery Sport - that's a compact model - promoting

a safe and stylish journey to the shopping mall, even if there's a monsoon in the way. In a CNN exclusive, Jim Boulden spoke to Land Rover's design

director on the next iteration of an iconic British brand.

(BEGIN VIDEOCLIP)

JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: It may have been the worst-kept secret on the automotive grapevine. Pictures of the new Land

Rover have been leaking for months. Even Land Rover T's potential buyers with some video of the interior showing its compact but seven-seater

Discovery Sport. You could even see them around from time to time under camouflage. Now, smoke and dagger time is over. This is the new Land

Rover Discovery Sport. The company is betting not only on existing owners to trade in.

GERRY MCGOVERN, LAND ROVER DESIGN DIRECTOR: But it will also, I believe, appeal to a new group of customers that would never have

considered the Land Rover brand before.

BOULDEN: Land Rovers and Range Rovers are all being refreshed under the leadership of Tata which bought Jaguar Land Rover from Ford in 2008.

In an exclusive interview with CNN, design chief Gerry McGovern says Land Rover is now about adding great design to its engineering prowess.

MCGOVERN: We're on a journey of transformation. We're now in the process, you know, beyond these walls - beyond this office out there. We

are creating a whole new generation of vehicles that will compete in a market that by 2020 will be - you know - there'll be over 22 million SUV-

type vehicles sold.

BOULDEN: McGovern says Land Rover will sell around 400,000 vehicles next year. So there is plenty of room to grow. A market you could argue

Land Rover created after the Second World War. Well there's no doubting the success of the Land Rover since these first came off the assembly line

in 1948. But for years, it was about functionality. Now it's about adding cutting-edge design. But underneath, it's still a Land Rover.

The new Discovery Sport is rumored to start around $40,000 - a premium SUV to add to the luxury Range Rover Sport launched in 2013. Marks going

head to head with the new Volvo SUV launched last week and SUVs from the likes of BMW and Lexus.

MCGOVERN: Land Rover vehicles will always have that incredible all- terrain capability, which, quite frankly, our competitors don't have.

BOULDEN: So you're saying some of your competitors may look like off- roads, but they're not really off-roads.

MCGOVERN: Well, they're not - they're generally not - as capable off- road. And the reality is a lot of people don't take these vehicles off- road. So, we have to makes sure that we don't create vehicles that aren't relevant.

BOULDEN: To enhance its desire to look relevant, Land Rover is teaming up with Virgin Galactic to pick one lucky winner and three friends

to go into space - taking the Land Rover brand on a discovery from the Urban jungle to new heights. Jim Boulden, CNN Gaydon, England.

(END VIDEOCLIP)

QUEST: Now, bearing in mind the weather forecast in the way the weather has been so grim lately and so part a bit of off-roading. Jenny

Harrison's at the World Weather Center. You need a bit of that sort of traction if you're going off to the shops.

JENNY HARRISON, WEATHER ANCHOR FOR CNN INTERNATIONAL: You - yes, off to the shops. You're quite right, everybody needs an SUV to go to the

shops. You're --

QUEST: (LAUGHTER)

HARRISON: -- right, there, Richard. There's been some very heavy rain in some parts of the world. And in fact Mexico of course springs to

mind. You certainly need a decent vehicle here because the rain has been coming down in torrents in the last 24 hours. This as you can see is the

remnants of Dolly. It was for a time a tropical storm. It's come on shore more or less and it will continue to produce some very heavy amounts of

rain. Some rain has come down of course in a very short space of time - 63 millimeters in six hours, 99 in 24.

But typically, as we said, this time of year in September - Tampico for example - gets on average 265 millimeters throughout the month of

September. So we're just at the beginning, but it's the usual month when we see quite a bit of activity and certainly some very heavy amounts of

rain. But there is more to come. You can see here we've got 129 in Aldama, 63 in Tampico and of course some areas, particularly those higher

elevations, will see more. And so landslides and mudslides continue to be a threat here for the next couple of days.

Now it's compounding not really on the western side of Mexico. In the east and Pacific is this - Tropical Storm Norbert. This is actually

expected to become a hurricane in the next 24 hours - again producing some heavy amounts of rain - 119 millimeters there in the last 24 hours and it's

going to move pretty much parallel to the west coast of Mexico, but right to the west as well at Baha, California. So, heavy amounts of rain, travel

conditions obviously are pretty rough if you are heading to this area or trying to get out. There's certainly plenty of rain again to come down in

the next 24 and 48 hours. It's been a very busy season so far this year.

In the eastern Pacific, more than the average in terms of number of storms named - 14. Nine of those have been hurricanes and six of them have

actually been major. So, as I say, the numbers are ahead. Much quieter in the Atlantic. Four named storms - the average is five at this point of

year. Three of those have become hurricanes. Thankfully so far no major hurricanes. But I know, Richard, remembers this rhyme and it ends with

September, remember. So, it can often be a very, very busy month.

Meanwhile in Europe -- heavy rain in Mexico, but even heavier amounts have come down in parts of Europe in the past 24 hours. In Italy - 192

millimeters, 188 in Albania - all from this very stubborn system we've seen moving its way very slowly across central and southeastern Europe. And

again, the warnings are in place as we continue Wednesday into Thursday. More of that very heavy rain, severe winds, large hail and again always

that chance of isolated tornados. So you can see that system barely moving as I say. Pretty good conditions across eastern Europe and of course

continuing to accumulate in those already rather sodden areas.

Now elsewhere we have got some nice, dry weather. Some good hot conditions, if you like it hot - across the southwest. Not unusual this

time of year. Temperatures now quite as high as they have been, but still 38 there in Granada. The average is 30 and of course 38 Celsius is 100

degrees Fahrenheit. So summer heat is still clinging on. Richard.

QUEST: Jenny Harrison, thank you. Now when we come back on "Quest Means Business" in just a moment, oil is greasing the engine of the

terrorist group ISIS. Why stopping its cash flow could be the key to defeating this group.

(COMMERCIAL)

QUEST: Barack Obama has vowed to destroy ISIS after the murder of the American journalist Steven Sotloff. When we've come to look at ISIS and

how the organization has been funded, oil wealth has been a key component to the terror group's growth. Our "Emerging Markets" editor John Defterios

explained the illicit trade that's made this possible.

(BEGIN VIDEOCLIP)

JOHN DEFTERIOS, "CNN'S EMERGING MARKETS" EDITOR AND ANCHOR OF "GLOBAL EXCHANGE": ISIS videos are part of today's new reality. The viewer hears

the reciting of Koranic verses describing a jihad or battle for Syria's al- Omar Field. It is Syria's largest oil field and one of a handful of facilities now under the firm grip of the terrorist organization. ISIS may

not operate a polished pipeline network one finds in the south around Bosra/Basra (ph), but Iraqi oil ministry officials say an old-fashioned

truck network for this crude is active.

HUSSEIN ALLAWI, SENIOR CONSULTANT, IRAQ OIL MINISTRY, VIA INTERPRETER: They use oil tank trucks instead of oil pipes. There are about 210 oil

tank trucks smuggling oil to Turkey and other places every day.

DEFTERIOS: According to the Iraq Energy Institute, ISIS is producing 30,000 barrels a day in Iraq, and another 50,000 barrels a day in Syria,

using a median black market price for oil -- $40 a barrel. That means it's bringing in $1.2 million from Iraq and another $2 million a day in Syria.

Energy traders say this oil is being absorbed regionally in Jordan, Syria and especially Turkey.

The network of black market traders stretches back to the days of Saddam Hussein when Iraq was under U.N. sanctions in the 1990s.

KATE DOURIAN, SENIOR EDITOR, MIDDLE EAST ECONOMIC SURVEY: You're talking, you know, a certain market-oriented people who have organizations

that trade in illegal oil.

DEFTERIOS: And ISIS has taken a page from Saddam's war playbook when he left Kuwait and burning fields behind him. These are still-pictures of

fields torched by the group in Ain Zalah and Butma outside of Mosul when it was pushed out by Iraqi forces. August was not a good month for ISIS and

its energy expansion plans. It lost the battle for a giant field in Kirkuk with 600,000 barrels a day of production and could not keep control of

Iraq's largest refinery near Mosul. What they do hold, Iraqi officials suggest, will need upkeep.

ASSIM JIHAD, SPOKESMAN, IRAQ OIL MINISTRY, VIA INTERPRETER: They will not benefit long-term because production needs experience.

DEFTERIOS: ISIS may not be an oil major, but revenue of over $3 million a day can certainly help finance its ongoing operation of terror.

John Defterios, CNN Abu Dhabi.

(END VIDEOCLIP)

QUEST: And we'll have a "Profitable Moment" as usual after the break.

(COMMERCIAL)

QUEST: Tonight's "Profitable Moment." The next 24 hours are going to be extremely interesting when it comes to the European economy because the

ECB is to decide the future direction of interest rates and indeed whether or not it's time to dib more monetary stimulus. The consensus is that

they're going to continue to wait for more contemplation. Stephen Pope in an e-mail today says, "What are they waiting for? How long do you want to

contemplate?" Inflation's already at deflationary levels, we've got the evidence that sanctions are having an effect on countries like the

industrial production of Germany and you've got a slowdown in the Eurozone. With banking issues, with worries over economies, you might very well ask

if it looks like a duck, quacks like a duck, -- you know how that thing finishes.

So, what is the ECB waiting for? You have the U.S. tightening, you have the U.K. looking to tighten, but the ECB still has to loosen. We'll

find out tomorrow. 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 do hope it's profitable. A check of the news headlines is next.

END