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Quest Means Business
Obama's Plan to Destroy ISIS; US Markets Up; EU Appoints New Economic Leaders; Most European Markets Down; Richard Branson Pens Leadership Book; Merkel: Sanctions Must Happen Now; Russian Ambassador to EU on Ukraine Cease-Fire, EU Sanctions
Aired September 10, 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: They're celebrating California Wine Month at the New York Stock Exchange with some particular winery. The market is higher,
it's up the best part of 50 points.
(GAVEL POUNDING)
QUEST: And three strong -- well, she clearly hasn't been imbibing the grape. At least if she has, we can't tell. Because it is today,
Wednesday, it's September the 10th.
Tonight, President Obama's master plan. The United States calls for international help to destroy ISIS.
Also on the program, escaping the spiral of sanctions. Russia's ambassador to the EU says there is a way out of the Ukraine crisis.
And taking the high road. Scotland's finance secretary tells me we will pay our debts if we get independence and the pound sterling.
I'm Richard Quest. I mean business.
Good evening. In just a few hours from now, President Obama will address the American people, and in doing so, the world, and is expected to
lay out his strategy to degrade the capability and ultimately destroy ISIS.
Calling the battle a "core national security priority," the White House says the United States will take military action and support the
forces fighting the militants. The president's already proposed funneling resources to moderate Syrian rebels.
The US secretary of state, John Kerry, discussed the ISIS threat with the new prime minister of Iraq on Wednesday. Mr. Kerry aims to drum up
support from countries in the Middle East and says every nation can help fight ISIS the terror group.
(BEGIN VIDEO CLIP)
JOHN KERRY, US SECRETARY OF STATE: Nearly every country on Earth could have an ability and an interest to join in this effort, whether by
providing military assistance, by helping to track and stop the flow of foreign fighters, helping to track and stop the flow of money. All of
these are things that sustain ISIL's terrorism, and all of them are things that are subject to impact by other countries in the world.
(END VIDEO CLIP)
QUEST: President Obama has asked Congress to set up a counter- terrorism fund to train and equip countries fighting ISIS. The fund could be as high as $5 billion.
ISIS is reportedly one of the richest military groups ever. Their assets are said to be $2 billion and comes from donors, extortion,
kidnapping, drug-running. And more conventionally, or perhaps in an unconventional way, oil. ISIS could make as much as $1 million a day by
taking Iraq oil and selling it illegally on the market.
Jomana Karadsheh is live from Baghdad. What are they waiting? What do they want to hear? Because last week, speaking -- or a couple of weeks
ago -- speaking to Christiane, the Iraqi president was quite clear: the want help in dealing with ISIS. So, what help do they want to hear
tonight?
JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT: Well, Richard, Iraqis here are really anticipating. Politicians are waiting to see what
President Obama has to say. It's a long list of what Iraqis want.
They need more support when it comes to arming, training, equipping the Iraqi security forces, who we pretty much saw crumble in the face of
the ISIS advances earlier this year, so they know that needs a lot more work.
They also need help with airstrikes. They say the airstrikes have been very helpful, they're very thankful for that, but they want an
expansion of these airstrikes into other parts of Iraq, with ISIS still controlling large parts of this country.
In addition to that, one big thing, we heard this again reiterated by the prime minister here today, Haider al-Abadi speaking with Secretary of
State John Kerry, is tackling the issue of ISIS in Syria. The Iraqis say they cannot cross that border, they cannot deal with ISIS. This is where
the international community and the United States have the responsibility.
QUEST: Jomana, thank you, joining us from Baghdad with that part of the story. And of course, CNN will have full, live coverage of when
President Obama speaks at 9:00 Eastern Time, that's 2:00 in the morning UK, 3:00 in the morning in Central Europe. And we'll have the full analysis of
this.
Let's put this into the wider context, now. Uzi Landau is the tourism minister of Israel, joins me in the C Suite. Minister, good to see you.
Also, you're a former minister of public security.
UZI LANDAU, FORMER MINISTER OF PUBLIC SECURITY, ISRAEL: Yes.
QUEST: You are well-versed with the issues of ISIS, terrorism, and the threat that is faced. Israel, your prime minister, Benjamin Netanyahu,
held a security meeting to discuss preventing ISIS from infiltrating the West Bank and Israel. What needs to be done?
LANDAU: That's a Churchillian moment, and the eyes of the free world people are looking up to the leader of the free world at a time that we
have to defend our countries against this rising threat of radical Islam.
ISIS is just one organization, one variation of an overall theme. We have the Boko Haram in Nigeria, the al-Shabaab in Somalia, al Qaeda in
Syria, Taliban. All over, you have it. The difference of that family is only with respect to the means. By each of the members it differs between
Jack the Ripper and Boston Strangler.
QUEST: Right.
LANDAU: But the goal is the same for all of them.
QUEST: There is a difference with ISIS, isn't there? And we're a business program, so we talk dollars and cents, and unlike many of the
others, who had a level of funding, but ISIS seems to have a constant revenue stream.
LANDAU: It's true. And much of money goes into ISIS, but not only to ISIS. How could one thing -- Boko Haram is running. Hamas, the terror
organization in Gaza, which belongs to the Muslim Brotherhood. Where from do they get their money? They used to get it from Qatar, some from Iran.
They also have quite substantial sources of money, and also the others.
QUEST: How does the president put together a coalition that's prepared to go beyond rhetoric to actually take measures. You can bomb
from the air, you can degrade the capability, but fundamentally, you're going to have to have somebody -- whether it's the Peshmerga, or whether
it's the Kurds, you're going to have to have somebody go in there and do the dirty work of fighting on the ground.
LANDAU: I'm not going to pass any judgment -- I'm not equipped for that -- as to what exactly the United States should do. What is absolutely
important is to see this message of resolve, of commitment. This message that will say, this we are going to stop, this way or the other.
And let me say, that behind this smokescreen of ISIS and others, Iran, which is a much greater threat to the free world, and only because it is
sponsoring terrorism, but it is also developing nuclear capabilities. And this is the threat.
QUEST: ISIS would be dangerous enough for you on its own, but --
LANDAU: For us in Israel?
QUEST: Yes. And for everybody else, as --
LANDAU: Like everybody else.
QUEST: -- as John Kerry and others have made quite clear --
LANDAU: Yes.
QUEST: -- today. That would be dangerous on its own. But do you -- of course, it's the instability of Syria, which is one of your neighbors,
it's the instability in the region that's created as a result.
LANDAU: Not just in Syria. We've had --
QUEST: Sure.
LANDAU: -- instability in Lebanon, we have instability in Iraq, in Yemen, in Egypt, in Libya, in Tunisia. In Southern Sudan. This whole area
is very turbulent. The only safe place is Israel, and Israel is the only ally of the West and the United States in serious times.
QUEST: I do need to ask you -- obviously, your brief is tourism -- it's an important part of your --
LANDAU: It is.
QUEST: -- of the Israeli economy. Hotels are down at 30 percent, bookings are down 36 percent. I know you're calling the industry together
for a strategy for how you recover in 2015. But bearing in mind Syria, ISIS, and everything else, you're onto a loser here.
LANDAU: Hold it. We've been told these stories since the establishment of the state. We had wars, we had many things, and see what
we are today. It's a country of 8 million, passing frontiers in science and technology. Our economy compared to others, for example, in the United
States and Europe for the past five years, we are doing reasonably well.
So, we have had this additional round of hostilities, and we'll put things back on track. We have difficulties, fine. Speak to me in five
years from today. You'll find one more million people in our country. You'll find our economy making headway, and we'll do it.
QUEST: A splendid idea, Minister. Let's cover you in that chair this time next year.
LANDAU: By all means, next year in Jerusalem, sir. Thank you.
QUEST: Somewhere. Right. We'll be there.
Now, I need to remind you that CNN has live coverage of tonight's US president's address on how the US and the allies plan to dismantle,
destroy, degrade, whatever you like. It's at 2:00 -- ISIS. It's 2:00 AM in London, 3:00 in Berlin, it's 9:00 Eastern time, 9:00 PM, 21:00 Eastern.
You can work out where it'll be on your clock. Go online and time now it.
The US markets were up on Wednesday. Investors rewarded Apple 3 percent, eBay lost as much on hopes of fears. When Apple says it's getting
into the pay business, everybody else starts to run for the hills. Microsoft's up on the news it could sign $2 billion for the game maker
Minecraft. The market was down until lunchtime, and roared ahead with a gain the best part of the third of one percent.
When we come back after the break, Russia says Ukraine shouldn't even think of joining NATO. The Russian ambassador to the EU will justify that
view after the break.
(COMMERCIAL BREAK)
QUEST: Now, these are the men and women -- or the men that we're looking at at the moment -- who'll be running the EU's economy for the next
five years.
Obviously, there's the Commission president, Jean-Claude Juncker, who got the job finally after a lot of backwards and forwards with the British.
The Dutch foreign minister, or former foreign minister, Frans Timmermans, is to be his right-hand man. He is the first vice president.
The former Finnish prime minister, Jyrki Katainen, is to be the vice president for jobs and growth. Now, of course, he's been on the program
many times. The former French finance minister, Pierre Moscovici, is the economics commissioner.
But a new face to us is Jonathan Hill, Lord Hill. A surprise choice to be in charge of the banking sector. Britain's Institute of Directors
says this appointment shows countries outside the eurozone will be given proper attention by the new regime.
Allie Renison is the IOD's head of Europe's policy. Joins me now. We looked at that chart. Good evening, can you hear me?
ALLIE RENISON, HEAD OF EUROPE POLICY, INSTITUTE OF DIRECTORS: Yes, hi. I can hear you.
QUEST: Hello, good evening. We look at that chart and we see the various people -- is it your feeling that this commission on economic and
policy grounds is more liberal, it's more pro-market, if you like, more pro-city of London?
RENISON: I definitely think that's the case. I think if you look at the sort of line up of commissioners, and the only person that anybody
who's not particularly market oriented we would have to worry about is Pierre Moscovici.
But he effectively is going to be man marked by Katainen and Dombrovskis, who are sort of these super commissioners. So, I think it's
definitely a win for a lot of the more sort of liberal, open, outward- looking economies.
QUEST: Right. But what policies do you think they now shift or they now change? Banking union is the priority. You've got to get that
through, otherwise, the whole eurozone structure reform doesn't work. What else is on the agenda?
RENISON: Well, I think, as you say, banking union is really important. I think to have a non-eurozone member country with Lord Hill
representing it really will do a lot to try and sort of smooth the relationship between the non-eurozone and the eurozone countries.
But I think one of the big issues will be about when it comes to respecting the deficit rule. And France and Italy have been really pushing
for more flexibility. And I think as much as Pierre Moscovici might think he might be able to achieve that with his new role, he's going to have a
lot of pressure on him to make sure that they respect the tough budget rules.
QUEST: Do you see tensions in this economic team? Claude -- Jean- Claude Juncker, of course, was president of the euro group, the eurozone group of countries. So, better than anybody else, any of his team
underneath him, he knows the difficulties of bringing them all together.
RENISON: He does. I think this whole commission has been a really master stroke victory for him, and for the UK, honestly. He knew that
there was going to be a lot of pressure on all sides to deliver. And I think if you look at he lineup, he's appeased France, certainly. But he's
given a strong backing to market-oriented economies. So, I think --
QUEST: Well --
RENISON: -- he's done a great job of making sure that he's appeased everyone.
QUEST: If you look at Lord Hill, he's not -- he's an extremely qualified man. Eminently qualified in terms of politics. But he's not a
particular city expert. He's not a financial expert. And there will be an argument that says the city will be able to run rings around his
department.
RENISON: Oh, I don't think that's the case at all. He's been a long- standing operator in the machinery of government. He's had so much experience in sort of lots of different roles, and I think there's lots of
people who come to these portfolios with absolutely no experience in a particular sector behind them.
He advised Ken Clark and John Major, particular John Major when he was going through these very fraught Maastricht Treaty negotiations. So, he
knows what he's up against in Europe, and I think the fact that he is not a really overtly political appointment in the way that some others might have
been is going to do him really well when it comes to compromise and consensus in Brussels.
QUEST: So, finally, after Michel Barnier and all the left, I would imagine maybe one or two glasses of champagne in the city of London
tonight.
RENISON: Perhaps, but you have to remember that the city of London is really sort of an asset, not just to the UK, but to Europe as well. And I
think that there's a lot of sort of concerns about competitiveness. We've had a flow of really overkill when it comes to financial sector regulation.
And I think that Lord Hill would be able to ensure that that's a bit more proportionate going forward. We want to see competitiveness-focused
policies. And he will be able to ensure that those are delivered.
QUEST: Thank you for joining us this evening from London. I appreciate it. You in Europe.
Staying there, Europe's -- London main market eked out a gain while other markets closed lower. It was a volatile day. Investors fretted over
the possibility that Scotland will decide to leave the union. It's next week's referendum, you're aware about that.
Also, the ECB plans to buy bonds to boost the economy and how effective it will be. Kingfisher rallied after its CEO, Ian Cheshire, was
to be replaced by Veronique Laury, the head of Kingfisher's French unit.
After the break, one of the world's foremost business leaders says he's never read a book on leadership. True. It didn't stop him from
writing one of his own. Sir Richard Branson in a moment.
(COMMERCIAL BREAK)
QUEST: Sir Richard Branson owns an airline and record empire. There's about 400 other companies. His ventures in business began at the
tender age of 14. Then, he sold Christmas tress. Now, Sir Richard, 50 years later, has put his lessons from a lifetime in leadership on paper.
It's a new book, it's called "The Virgin Way."
Recently, he's taken up issues like the crisis in Ukraine. And this week, he joined the Global Commission on Drugs Policy in a plea to end the
war on drugs. Poppy Harlow spoke to Sir Richard.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNN CORRESPONDENT: You joined with the former presidents of many countries to send a message, and that is that the war on
drugs is a failure. That it's not working. What is the biggest change that you guys are pushing for to be made?
RICHARD BRANSON, FOUNDER, VIRGIN GROUP: Well, it's very simple, and that is that rather than treating drugs as a criminal problem, it should be
treated as a health problem. And it sounds so obvious. As a businessman, if I'd had a failed business for 50 years, I would have closed it down 49
years ago.
But governments have gone on punishing and executing in some places in the world, people over the last 50 years. It hasn't worked, and we're
urging governments to change tack.
HARLOW: What drugs should be legal in this country?
BRANSON: There's a difference between legal and regulated. And what we're saying is that drugs very much should be regulated in the same way
that cigarettes are regulated or alcohol is regulated.
And on that basis, the interesting thing in Portugal is that they've taken heroine, for instance, and they've said, we're not going to send
people to prison for taking heroine, but what we are going to do is we're going to have centers where people can go when they have a heroine problem.
The state will supply the heroine. The state will supply the clean needles. And the people who come to get their fix must see a psychiatrist,
and when they're ready to come off, the state will supply help to get them off.
HARLOW: I want to talk politics a bit. You've met President Putin of Russia briefly, and you recently said you'd like to sit down with him.
What would you say?
BRANSON: A group of Russian business people, a group of Russian -- Ukrainian business people and international business people, we've pulled
them together to basically say to our politicians, let's try to sort out the problem in east Ukraine through talk, not through tanks and people
being killed.
And then, after that's been sorted, and hopefully, cross fingers, it is heading in the right direction finally, then let's sit down with Russia
and try to work out a way of bringing them back into the fold.
HARLOW: What do you make of Vladimir Putin's actions and rhetoric of late?
BRANSON: I think that President Putin has felt that when he got elected, he felt shunned, somewhat, by the West. And I suspect the West
have made some mistakes in their dealings with him.
I think with Ukraine, we -- we should have most likely made it clear that Ukraine will not become part of NATO and that we will respect the
general nervousness that Russia has of having a country as big as Ukraine on their border as part of NATO.
But having said all that, I think it's unforgivable that Russia seemingly sent tanks and troops into east Ukraine. And obviously,
unforgivable that a commercial plane was shot down. I'm going to Ukraine in two or three days' time to meet the Ukrainian business leaders and to
talk to them about it and see whether we can help make sure that the peace stays.
HARLOW: Would you ever run for public office?
BRANSON: No. I think that I've been 50 years an entrepreneur. I've learned a lot in those 50 years, and now I spend most of my time on
building up global organizations to try to tackle issues in the globe, but from a position of -- not being political.
(END VIDEOTAPE)
QUEST: Sir Richard Branson.
Angela Merkel says it's time for Europe to stop dithering and put the new sanctions on Russia into effect. EU leaders are waiting to see if a
cease-fire in Ukraine will hold before rolling out the new measures. The chancellor says it's time to act.
(BEGIN VIDEO CLIP)
ANGELA MERKEL, CHANCELLOR OF GERMANY (through translator): In view of the current situation, which has indeed brought an improvement in relation
to military activities, it's not a 100 percent cease-fire, but it is an improvement. A lack of clarity on many points I named means we are in
favor of making these sanctions public now.
(END VIDEO CLIP)
QUEST: Vladimir Chizhov is the Russian ambassador to the European Union. I asked him if Russia's satisfied with the cease-fire so far.
(BEGIN VIDEOTAPE)
VLADIMIR CHIZHOV, RUSSIAN AMBASSADOR TO THE EU: We're reasonably satisfied. Come on. In a conflict like this, no cease-fire is ever
perfect. It is not hermetically sealed. There are violations, there are people -- and I accept there may be people on both sides who would be
interested in derailing the whole effort. But overall, the cease-fire is holding.
What we were concerned, of course, is that on the side of the Ukrainian government, perhaps some of the armed groups would not be
accountable to the government --
QUEST: Right.
CHIZHOV: -- to the military commanders and so on. Those so-called "voluntary battalions." So far, it's working, and I'm keeping my fingers
crossed for the cease-fire to hold.
QUEST: The EU is now discussing -- has come up with a range of sanctions. We're waiting for them to be published, the fourth round of
sanctions. I assume from what we've heard from Russia that if and when the EU promulgates its list, it will be tit-for-tat from Russia and the mess
goes ever deeper.
CHIZHOV: Well, it's a spiral, I agree. A spiral which I hope we'll be able to get out of. So far, at this moment, no decision has been taken
by the EU ambassadors, who have been discussing throughout today whether to promulgate or not the already-agreed set of sanctions.
Perhaps they're having second thoughts, and while we count on common sense to prevail, because the situation on the ground, as we just
discussed, is rapidly evolving, and that should be taken into consideration.
QUEST: What is your fundamental objection if the independent country of Ukraine wishes to join NATO?
CHIZHOV: Well, any country may have its own wishes. But it's the hardware, the equipment, the military installations that matter. And it's
not just intentions, but the capabilities. So, any eastward enlargement by NATO is and has been all a long a source of concern to my country. And of
course, with Ukraine, it would be sort of going over the top.
(END VIDEOTAPE)
QUEST: That's the Russian ambassador to the EU. When we come back, British leaders say an independent Scotland will not be permitted to use
the pound. Now, a leading figure in the Scottish National Party tells me why he thinks they're bluffing. In a moment.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in a moment. This is CNN and on this network the news will always come
first.
President Obama is meeting with top national security advisors ahead of a major speech that he'll give tonight on ISIS. He's addressing the
American public hours from now when he'll lay out a comprehensive strategy for what the White House calls "degrading and ultimately defeating" the
military group. Ukrainian President Petro Poroshenko says around 70 percent of the Russian troops believed to have been inside his country,
like these seen near the border, may now have withdrawn. The Kremlin aide says Mr. Poroshenko spoke to the Russian president on Tuesday. The two
leaders are broadly satisfied with how the ceasefire's gone so far.
Flood waters continue to rise in parts of the Indian and Pakistani- controlled Kashmir region. Indian soldiers are rushing to erect temporary crossings to rescue thousands of stranded people. The number who have died
stands at more than 400.
A new poll indicates the campaign against independence for Scotland is back in the lead. It's the latest public opinion survey which comes as the
British prime minister visits Scotland and urges voters to stay in the union. The vote's on September the 18th. The latest poll of course still
has an undecided major - an undecided level - which will swing the final vote.
Several big businesses are throwing their weight behind the campaign to keep Scotland as part of the U.K. BP says claims about the future
Scottish oil production are overly optimistic. Around 90 percent of oil in the U.K. comes from areas likely to be claimed by an independent Scotland.
The company says it will continue to invest in Scotland regardless.
Shell adds that subtracting oil from new areas will be difficult without sharing existing infrastructure and improving tax incentives.
Standard Life says it may more its non-Scottish business to England if Scotland votes for independence. John Swinney is the cabinet finance
secretary for Scotland, and a leader in one of the leading party members in the Scottish National Party. I asked him earlier to respond to those
corporate pleas.
(BEGIN VIDEOCLIP)
JOHN SWINNEY, SECRETARY OF FINANCE, SCOTTISH NATIONAL PARTY: Many businesses have got different views to offer in this whole debate. There
are many businesses that have come out to express their support for the establishment of an independent Scotland and highlighting the enormous
economic advantages that would be to Scotland by giving us a whole series of economics levers that we don't currently have to ensure a stronger and
more effective Scottish economy in the years to come.
So, all of those opportunities are seen by many business organizations. I have to say, some of the comments by BP about the need
for financial stability in the North Sea are a bit strange given the fact that the U.K. has an unenviable reputation of chopping and changing
taxation of insurance in the North Sea oil and gas state, whereas we've pledged to give financial stability to the North Sea oil and gas states are
recognizing the significant contribution it can continue to make to the health of the Scottish economy and to the health and the strength of our
public finances.
QUEST: This has now turned into a deeply economic financial debate over issues of currency, of debt - who will pay what. You're saying that
you will not pay - or you will not pay your shares of the debts of the U.K. until now if you don't get access to the currency, correct?
SWINNEY: Well what we're saying is that there is a strong and well- worked out proposal for establishing a currency union between an independent Scotland and the rest of the United Kingdom. And what that
allows us to do is to maintain the integrated financial markets that we have in the U.K. today, but it gives an independent Scotland the control
over the vital economic levers that we believe are important to create a stronger Scottish economy. And as part of that agreement, we are very
happy to accept our share of the debt that has been run up over many years and to ensure that we service that debt in the years to come.
QUEST: The problem of course is that all the major parties at Westminster have said that you will not have access to a currency union.
And Mark Carney, the governor of the Bank of England has said without your own currency, you ain't got sovereignty. Aren't you a little in a bit of
trouble now on that?
SWINNEY: That's for the U.K. political parties. Well, we're in a campaign just - we're not a political campaign -
QUEST: Right.
SWINNEY: -- in which people are making the statements from the U.K. parties before the referendum, and after the referendum, it will be in the
interests of both the rest of the United Kingdom and an independent Scotland to make expedient, efficient progress to establish that currency
union and the Scottish government will participate effectively in that process.
QUEST: But you are banking - very sharply and very hard - on the fact that the U.K. main parties do not mean what they say at the moment. That's
what you're saying. You're basically saying they don't mean what they say.
SWINNEY: Well, our very senior minister in the U.K. government told "The Guardian" newspaper that a person that said they would be close to the
negotiations, that of course there would be a currency union, and that what we're hearing from U.K. ministers is bluff. And that's exactly what it is.
(END VIDEOCLIP)
QUEST: Now, the referendum in Scotland is encouraging independence campaigners a thousand miles away in the Spanish region of Catalonia.
Separatists there say they don't get a fair return on the tax revenue that they send to the capital in Madrid. It's exactly the same argument that
they use in Scotland as regards to tax monies sent to Westminster. But in Spain, the movement has spurred mass protests around Catalonia. Hundreds
of thousands are expected to take to the streets on Thursday when they'll mark the 300th anniversary of Catalonia's defeat in the Spanish Wars of
Succession. The Spanish Prime Minister Mariano Rajoy has vowed to block a planned referendum on independence. Now, the Catalan President Artur Mas
told AFP it will be practically impossible to block the vote forever.
Now that Scotland is having its referendum, Catalonia has got the bit between the teeth. I spoke to the Spanish Tourism Minister Jose Manuel
Soria and asked him if he was worried a vote for Scottish independence could tip Catalonia over the edge.
(BEGIN VIDEOCLIP)
JOSE MANUEL SORIA, SPANISH MINISTER OF INDUSTRY, ENERGY AND TOURISM: I would like to make it very clear that have nothing to do the case of
Scotland and the case of Catalonia because we have very clearly in our Spanish Constitution that the unions of Spain is one of the principles and
one of the values. So therefore, as the referendum in Scotland have been organized and made in base to the British law. But in Spain, that's not
possible because that is something goes against our Constitution and that has been a swarthy opinion of our Supreme Constitution Court and have been
as well the opinion and the position of the majority of the Parliamentary in Spain. So therefore they are completely different cases.
QUEST: Spain has - is - is now one of the fastest if not the currently fastest-growing members of the E.U. You're coming out of the
recession at a great (click), but the damage has been deep and it's been long-suffering. So, how do you anticipate restoring the perception in the
tourism industry if that needs to happen?
SORIA: Well, now what I (inaudible) having one of the most important performance that we have ever had in our economy, during last year we
received in 2013 more than 50 million tourists. Their performance this year during the period of January to August is even better than the same
periods the previous year. And we do think that this is going to be - is going to continue to be one of the engines of the Spanish economic
recovery.
QUEST: The tourism industry and the tourism sector will need more investment. It's going to have obviously the last five or six years has
lagged in that sense. Is the government prepared to spend the money necessary?
SORIA: Well, most of the investment which is needed in the tourist sector is investment by the private sector which means to up to date some
of the facilities that have had already some years. But on the other hand, you have to realize that there - it - has been a very high effort in Spain
in building new facilities and new hotels during the last year. So, our offer is every year better.
QUEST: You will be familiar with the problems in Barcelona, where it seems to be success is a challenge in its own right. And local residents
are now saying enough! Now you know as well as I do, Minister, there's no shortage of low-cost carriers bringing people to Barcelona for a long and
good weekend, but it might be getting out of control.
SORIA: Well, I want to say that those are exceptions. That's not representative of the very good tourism sector which we have in Barcelona,
we have in Catalonia, we have in Spain, and those cases have to be treated as like they are. They are exceptions, some the city council and the local
government in Barcelona has already taken measures in order to put things in order.
(END VIDEOCLIP)
QUEST: That's the Spanish tourism minister. One of the most powerful bankers in Spanish history has died. The chairman of Santander, Emilio
Botin, suffered a heart attack. He was 79 years old. El President, as he was known, has spent nearly three decades leading the bank. Botin took
over a mid-size bank from his father. He transformed it into Spain's largest bank, and in doing so, one of the largest in the world. The
Santander board of directors has named his eldest daughter Ana as its new chairwoman. Emilio Botin died at 79.
(COMMERCIAL BREAK)
QUEST: The current tensions between Russia, Ukraine, the West - the United States, the European Union - and rising sanctions - has all raised a
specter once again of the Cold War. It's all the preparations, the worries, the anxieties and how to deal with the enemy. Well, the
Greenbrier Hotel in West Virginia is one top hotel that knows this environment very well indeed, mainly from decades of preparation. Oh, yes,
the Greenbrier's got a luxury spa, a golf course, a casino. But what really makes it stand out was for how it behaved during the Cold War. For
30 years it had part of the hotel that was to be used in the event of nuclear war.
(BEGIN VIDEOCLIP)
QUEST: Turn the corner, take it all in. Oh, my word. That's quite something, isn't it? Now, that's what you call (inaudible). At first
glance, you'd be forgiven for thinking the Greenbrier's just another traditional American hotel. Massive and majestic on the surface, yes.
It's what's below that's earned the Greenbrier its unique place in history. In the early 1960s, the West Virginia Wing was added. The entrance was
purposely decorated this gaudy -- bold colors, popping patterns, a decoy to the secret bunker behind.
After 1962, everyday hundreds of people would walk between the hotel and the brand new exhibition center, never realizing what was hidden behind
the famous wallpaper. Behind the wallpaper, an 18-ton steel door, which when closed, would protect hiding members of Congress from a nuclear
fallout. Here they would store everything that 1,000 people would need to stay here for - who knows how long?
In the Cold War days, Linda Walls was a cocktail pianist.
LINDA WALLS, BUNKER TOUR MANAGER: Yes.
QUEST: She always suspected there was something more to the Greenbrier than just vacationing travelers. It was only after 1992 when
the bunker's existence was exposed, that she became tour manager. All was revealed.
WALLS: The plan was to bring 1,000 people here to stay for as long as 60 days. There had to be a huge quantity of food. There were 18
dormitories in here that were filled - with bunk bed.
QUEST: For 30 years!
WALLS: For 30 years!
(POUNDING ON WALLS)
QUEST: So, what have we got here?
WALLS: A decontamination area that could've processed 220 persons per hour. The truth is, if the facility had been used for the reason it was
created, it would've meant that the very worst had happened. It would've been horrible. The closest this place came to being utilized was during
the Cuban Missile Crisis. Thank goodness it was never used for the reason it was built.
QUEST: What was this used for?
WALLS: This room was a briefing room but it also was a television studio. So if the speaker of the house had assumed the presidency - `My
fellow Americans, don't panic, everything will be fine.'
QUEST: Remember, the whole concept of this place was the continuity of the U.S. Congress, which means there had to be a place for the
politicians to debate. So, in this room, it was the House of Representatives, whilst over here next door, it was the U.S. Senate.
WALLS: It was really intended that they would meet in here. So, the cover was, this room was open to the Greenbrier public, you know, since
1962. Thousands of people have been in here for meetings, but they didn't know they were actually in a bunker.
QUEST: The hotel and the bunker, the bunker and the hotel are inextricably linked.
Male: Right. One couldn't exist without the other. You know, the hotel is the cover story, it's the way it deflects interest. If people -
people asked, other people heard rumors, and it would be dismissed -- this is the Greenbrier.
QUEST: While not many hotels have a history quite as exotic as the Greenbrier, at the end of day, this hotel is still a business with a bottom
line. The Greenbrier's a fascinating establishment because like all big hotels, they have been tremendously successful in reputation and dreadful
financially.
Male: (LAUGHTER). We've had our ups and downs over the years, for sure. And we do a great business here for seven months of the year, you
know. Unfortunately, there are 12 months in the year. People kind of liked that it was a secret place there back in the corporate retreat days.
But we can't survive as a secret place anymore. So we got to get - we've got to get the name out there, we've got to let people know about it.
(END VIDEOCLIP)
QUEST: What a marvelous place. I loved that line - `We do a great business for seven months of the year, unfortunately there are 12 months in
the year.' It's really like Jenny Harrison at the World Weather Center. Lovely weather for four months of the year -
JENNY HARRISON, WEATHER ANCHOR FOR CNN INTERNATIONAL: (LAUGHTER).
QUEST: But unfortunately there were 12 months of the year.
HARRISON: Yes, you're not wrong, you're not wrong. And of course, talking about bad weather, Richard. I would say -
(CROSS TALK)
HARRISON: -- interim Pakistan - I know. Well interim Pakistan is a perfect example of that. Because as we know, it is very, very dry for the
majority of the year. Then of course we have the southwest monsoon, and now at the tail end of that, and it's at this time particularly when we've
had this deficit building up since June, that we're now faced with this.
So, again, you know, there's just kilometer after kilometer of flooded land. And of course it's not just people and their belongings, it's their
livelihoods as well. You can see this young man obviously take the sheep or goat or whatever it is again out of the flood waters. Though where's
he's going to take it to, of course, that's another matter. But it's now about these two rivers. It has been really since the weekend. The Jhelum
and the Chenab, because already it has peaked at Marala, and you can see here - look at this - huge peak.
That was on Sunday. And of course it really came down very dramatically quickly after that. But now it has got to continue its crest,
continue its journey southwards. And so we're expecting it to crest at Trimmu where the barrage is by about Friday.
It is already past the danger level, so of course now the concerns are - well obviously we've had flooding upstream, where is it going to head
down to? So, we've got the Jhelum niche (ph) now which will eventually converge and go through Trimmu Barrage. So, this little bit's like a
Wednesday, and of course ever since then it's continuing to flow southwards and we expect it to peak, as I say, here by Friday, and then of course
continue downstream as we go through the weekend.
So, now we've got these five districts that are now on high alert for the possibility of flooding, and it is very possible. About 12 million
people are actually in that warning zone. There's not a great deal of rain as we go forward. There's some heavy rain across into the north and west
of India, but nothing really in Pakistan. Again, when you see pictures like this, you get the idea of the scale of the problem. Just look at this
- there are thousands of homes in this situation. Of course people are stranded on rooftops - wherever they can get to that is actually dry and
safe.
There's more rain across into central and northern India, so, again, we've got warnings in place for the rain here, but at least there's no rain
in the forecast in Pakistan - it is just we've got a watch now as the rivers continue to move downstream. Richard.
QUEST: Thank you very much. Jenny Harrison at the World Weather Center. Please watch this closely because obviously it's crucially
important in large parts of the world. Thank you, Jenny, for that. T- Mobile says it will be the first company to offer a better way to make calls on the new iPhone. This is T-Mobile USA, I ought to emphasize. The
chief exec who is a lively wire himself, will be telling us what it means for the bottom line.
(COMMERCIAL)
QUEST: Now amid all the new bells and whistles that the iPhone and the i-this and the i-that, it's easy to forget that the iPhone is first and
foremost as indeed, whether it's the iPhone or the Blackberry - yes I'm still the one person - no, not the one person - I still have the
Blackberry. Anyway, their primary purpose - maybe I'm a little old- fashioned - but it is, to make a phone call - Hi, Mum, I'm on the train. The iPhone 6 sports a clearer and more reliable way of doing things over
Wi-Fi. Team Mobile USA says it's the first to offer the service. The company's chief exec, John Legere, joined me at and explained what's
different about this whole concept of integrating Wi-Fi much more closely into the very basic business of making a phone call.
(BEGIN VIDEOCLIP)
JOHN LEGERE, CEO, T-MOBILE USA: This won't be an app. What we've announced today is that every single Wi-Fi spot in the world now became a
T-Mobile tower, and every single device we sell in our stores will have out-of-the box Wi-Fi calling and text capability, including the new iPhone
device.
QUEST: Right. Now, when -
LEGERE: So that's a whole different way. We're going all in.
QUEST: Right, but when you use these new Wi-Fi - this new Wi-Fi capability, are you still charging for the call - so when I'm roaming and I
use a Wi-Fi, will I be paying the 20 cents, or are you about to scoffer that?
LEGERE: Now, Richard, you know - especially you with your traversing the globe - that we have already saved you so much money that that
incredible car that you have came from our savings. And part of this of course is now, you know, as is the case, Wi-Fi connections overseas -
you're out of Wi-Fi capability - calling to the U.S. free. You know, there's no charge for that. So, we're not charging. It's now - it's a
capability everybody should have. So, more savings for you - bigger car, bigger house - you know, which we're very happy for, Richard. You're a
great man.
QUEST: (CHUCKLE). The last 24 hours really did show it is all about Wi-Fi, it is all about unbundling and it is also about these increased - I
mean, the way Apple with its iPhone 6 wants to be my wallet. It wants to be all things - this is a - I wonder. Give me an idea, John, where does
this revolution go next?
LEGERE: Well, first of all, Richard, everybody wants to be your wallet, not just the new iPhone. But let's just - you know - not step over
that. Apple's announcements yesterday were incredible. These new devices are beautiful, we all want to get our hands on them. The iWatch that's
coming is revolutionary, and what's happening with payments, it's something we're very involved in. And more so than ever, what you're finding is the
Smartphone is becoming pinnacle to what everybody does in every aspect of their life. And that's why, as you say, Wi-Fi's a big piece of that. And
what we're trying to do is make it easy for consumers to use that device to its fullest - not to screw them or to make it difficult. So I think those
two go in - go in - hand in hand, and, you know, I'm glad you caught on to exactly what this Un-carrier 7 dot all means.
(END VIDEOCLIP)
QUEST: John Legere who we can always guarantee will put it in very colorful terms. We'll have a "Profitable Moment" (RINGS BELL) after the
break.
(COMMERCIAL)
QUEST: Tonight's "Profitable Moment." The new commission has been announced, and it makes fascinating reading. Let's face it, you know,
you've got Katainen from Finland -- former prime minister, Moscovici from France -- former foreign finance minister, and Lord Hill from the U.K. all
in this economics, monetary, trade portfolio with Timmerman above and Juncker who was head of the Eurozone Group - what a mixture it is. And
it's fascinating too to how this will all come together. New policies to reflect a new time, a new generation and a disenchantment with the way the
E.U.'s been run. The only problem is, all these people were there beforehand - they were running things in the old one. So what are they
going to do differently? We'll be watching and holding their feet to the fire as necessary. 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. I'll see you tomorrow.
END
