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Quest Means Business
World Bank Fears Ebola Catastrophe; Ebola Hits Economic Growth, Trade; One-Woman Ebola Hospital, US, European Markets Fall; Apple Bent Out of Shape; Costa Rican President to Meet Investors; Ending Inequality Priority for Chile
Aired September 25, 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: A very sharp sell-off on Wall Street, the fourth down session in five days, the market off more than 200 points, now under
17,000. It is Thursday, it's September the 25th.
Tonight, a catastrophe for Africa. The World Bank doubles Ebola funding. The president tells me time is running out.
(BEGIN VIDEO CLIP)
JIM YONG KIM, PRESIDENT, WORLD BANK: If 10,000 cases cross the border and get to the cities of Nigeria, we're talking about a disaster that we
may not be able to get under control.
(END VIDEO CLIP)
QUEST: In mid-morning, Wall Street turned turtle. A steep sell-off. The markets suffered their worst days in months.
And what the difference a week makes for Apple. The shares have bent out of shape, and it's all over the record-selling bendy phone.
I'm Richard Quest, I mean business.
Good evening. We start with the news that Africa faces a fundamental crisis if the world community fails to halt the spread of Ebola. That's
the stark and serious warning from the World Bank president Jim Yong Kim.
He says this is the most complex issue that he's ever had to deal with. President Kim knows something about this. He's a world health
renowned expert, besides being the president of the World Bank.
The outbreak is a fundamental crisis. It's already killed nearly 3,000 people. The lives of tens or even hundreds of thousands more are at
stake. And if you look at then, which you and I have so often on this program, the locus mainly around Sierra Leone, Liberia, Guinea, where the
most number of deaths has taken place
But obviously, there have been eight over in Nigeria. Senegal has had one case. And as you heard on this program, the concerns of neighboring
countries, like Ghana and Burkina Faso and the Ivory Coast.
The World Bank trying to deal with this now says it will nearly double its funding to help fight the disease. Global leaders, including President
Obama and Mr. Kim, held high-level meetings at the United Nations today. They agreed that the spread of the disease poses a threat to Africa and the
economy of the world.
I spoke to the World Bank president, Jim Yong Kim, after that meeting. Mr. Kim's a world-renowned expert, he knows this subject like few others,
and he says failing to stop the spread of Ebola would be catastrophic.
(BEGIN VIDEOTAPE)
KIM: If we get above a million cases, Richard, we're really talking about reversing all the great things that have been happening on the
continent for the last 10, 15 years. Over 5.5 percent growth rate, even during the period of 2008 to 2013.
What we're talking about is a fundamental crisis throughout the continent if we don't get this under control in these three countries
within the next weeks to months. We think that we can get services, both prevention of spread and treatment to every village. And that's what we
have to do.
This is going to be so difficult. It's the most difficult, the most massive, the most complex thing that I've ever been involved in, and I've
been involved in, frankly, some of the most complex things we have ever tried in global health. But we have no choice. If we don't do it, we're
really talking about a catastrophe that's both human and in many other ways as well, especially economic.
QUEST: The president of the United States made it clear that the US was prepared to do its part and was prepared almost to lead in many ways.
But the US couldn't do it on its own. So, what are we now lacking in terms of putting together this plan? Is it a coordinating leadership role by an
organization?
KIM: Well, we do have that. I think the UN mission, Secretary- General Ban Ki-moon has essentially applied the peacekeeper, security emergency model to health. It's the first time that they have ever done
this.
What we need is to bring in the kind of health workers from other places in Africa. We need to reemploy the workers who've now abandoned
their posts in Liberia, Sierra Leone, and Guinea, and we also need to bring in a special breed of physician and nurse, people who have implemented
complex, difficult health interventions in poor settings.
And having been involved in them, I know that we have literally hundreds of them in Haiti, in Peru, in Rwanda, in many other countries that
have done these sorts of things. That's the kind of specialization we need.
QUEST: With your experience, sir, does it feel as if the response is too fragmented?
KIM: Well, it is going in a lot of different directions, because it need to go in a lot of different directions. This crisis is so large that
it's proven difficult to have a single sort of general running the whole thing. I think we have a system in place that can work, but everyone now
understands that the urgency is to get the prevention capacity and the treatment capacity in every corner of these three countries.
I spoke with the president of Nigeria, as I mentioned in the UN, and if this happens, if 10,000 cases cross the border and get to the cities of
Nigeria, we're talking about a disaster that we may not be able to get under control.
And so, the urgency is really get the people of Liberia, Sierra Leone, and Guinea to start running toward authority inside those countries. Right
now, they're running away, because there's nothing there to help them.
QUEST: Obviously, the economic effect on these three countries involved is devastating -- 10, 15, 20 percent of GDP. But they are
relatively small countries. In the sense of as that economic effect ripples out through the continent, how concerned are you?
KIM: I'm extremely concerned. We hope that people respond because of the humanitarian needs, but there is self-interest here. Look, if this
goes to the point of affecting the entire African continent, nobody will be unaffected. And cases will start exiting the continent and going
elsewhere.
Because right now, if you're a febrile person, if you have a fever and you have diarrhea, and you suspect you might have Ebola in one of these
countries, the most rational thing for you to do is try to get out of there and get to a place where you can be treated. It's simply the most rational
thing to do.
We have to now turn it around so the most rational thing to do is to stay in your country and get treated right where you live. If we can do
that, we can get it under control, and that's doable. So, if we fail, it's not because this requires some new technology or new drug. If this fails,
it will simply be because we didn't have the will to do it.
(END VIDEOTAPE)
QUEST: Extraordinarily strong warning from the World Bank, which estimates containing the outbreak will cost more than $1 billion. Look at
these numbers -- and bearing in mind in all of this, we're not counting dollars before lives, 3,000 or so people dead with the death toll likely to
rise is by far and away the single most horrific number here.
But on the economic front, look, it's already damaging growth in those countries hardest hit -- Liberia, Sierra Leone, and Guinea. Down 2.1, 3.4,
3.3 percent. It'll cost each country more than 2 percent of output this year.
Now, if it continues to spread, those numbers will rise dramatically. Sierra Leone on its own could lose up to 9 percent of economic impact.
Liberia down here, the impact could be as great as 11 percent.
Now, the outbreak's also a key factor holding back global trade. The World Trade Organization slashed its growth forecast from 4.7 to 3.1.
Obviously, many factors are involved, but they're quite clear now, Ebola is one of those reasons. And make no mistake, if that changes, or the Ebola
situation gets worse, that number will also fall.
The human cost is infinitely great. In Liberia, Ebola sufferers are arriving at hospitals in many cases and they're being turned away to who
knows what. CNN's senior medical correspondent is Elizabeth Cohen, and she spoke to one woman who single-handedly has saved three members of her own
family.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): Two months ago, Fatu Kekula's father got Ebola.
FATU KEKULA, RELATIVE OF EBOLA VICTIMS: He started to put on the symptoms, the vomiting, the stooling, the fever.
COHEN: Three hospitals turned Fatu's father away. Fatu had little choice. She took her dad home to treat him herself. Within days, three
more people in the house got sick, and Fatu, a 22-year-old nursing student, had to become a one-woman Ebola hospital.
KEKULA: I treated them all by myself, no one around, all by myself, all alone.
COHEN: Isolating her sick loved ones in separate rooms, her mother, her father, her cousin Alfred, and in there, her sister Vivian.
COHEN (on camera): So, you were running all around the house taking care of them?
KEKULA: Yes.
COHEN: They must've been so sick.
KEKULA: Yes, they were very sick.
COHEN: Could they eat?
COHEN (voice-over): Incredibly, Fatu didn't get sick. How she managed that will astound you.
KEKULA: I developed my own protective gear. I bought black plastic bags, a plastic jacket, gloves, rimmed boots, long trousers, hair cover,
mask to my nose, everything.
COHEN (on camera): So, this is it. You're done.
KEKULA: Yes. Yes.
COHEN: This is how you took care of four people with Ebola.
KEKULA: Yes.
COHEN: This is what happens when hospitals turn people away. You became inventive.
KEKULA: Yes.
COHEN (voice-over): Unfortunately, Fatu's cousin Alfred didn't pull through. But Fatu saved her father, her sister, and her mother from Ebola.
MOSES KEKULA, FATU'S FATHER: I'm very much proud of Fatu Kekula for the marvelous work that she did through the power of Almighty God.
COHEN (on camera): Do you owe your life to her?
VIVIAN KEKULA, FATU'S SISTER: More than my life, because I can say even though God saved me, but she saved my life also.
COHEN (voice-over): UNICEF heard about Fatu and was inspired by her. Now, they're teaching her trash bag method to other people
F. KEKULA: I'm feeling proud of myself.
COHEN (on camera): You're quite a nurse.
(LAUGHTER)
COHEN: And you --
F. KEKULA: Sure.
COHEN: And you're not even officially a nurse yet.
F. KEKULA: No.
COHEN (voice-over): Elizabeth Cohen, CNN, Kakata, Liberia.
(END VIDEOTAPE)
QUEST: QUEST MEANS BUSINESS, we'll be back with more in just a moment. Good evening.
(COMMERCIAL BREAK)
QUEST: QUEST MEANS BUSINESS on a Thursday. Doesn't matter which side of the Atlantic you look on, in Europe or in the United States, stock
markets closed sharply down. It was a bruising day for investors.
Wall Street was down 1.5 percent, a loss of more than 200 points, now under 16,000 (sic). It was the technology stocks that really pulled the
market down very sharply, particularly Apple, of which we'll consider in just a moment.
This is the fourth day of declines in five days on Wall Street, and there was a very simple reason: it was China, it was Japan, it was Europe.
And in Europe, it was exactly the similar sort of situation. Look at the Frankfurt Xetra DAX, which fell 1.5 percent, down 150 points, very sharp.
And I think what you're seeing here, once you look at the numbers, you see 3:00 in Frankfurt. That's the Wall Street open. So, the market's
holding its own until it sees what's happening in Wall Street. Similar sort of story in London.
You get this view of what was happening, and I -- I'll take my chances, but I'm guessing -- there, absolutely, there you go, once again,
you see it -- you can see it almost exactly the same way once Wall Street gets underway.
Alison Kosik is at the Exchange. So, Alison, we saw from the graph of the Dow, there was a little moment of encouragement and enthusiasm, which
evaporated, and the market turned turtle.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes. And the market didn't look back. And you know what it really was? It was, Richard, a lot of
little movement of -- excuse me -- a lot of movement because of little bits of information coming in.
Those little bits of information wouldn't necessarily rattle the financial markets on their own, but you roll them all together, and then
they rattle the markets, and it becomes just sort of a big reminder of that slow growth global economy. And what you said, concern about other big
economies in the world: Europe, Japan, and China.
The good news is that the US is doing the best, but now what we're seeing is the US markets factoring in well, gee, what's the landscape going
to really look like when the Fed starts to pull back interest rates and tighten interest rates, actually. And knowing that, we're seeing economies
in Europe, Japan, and China slowing down. Are these economies ready for it?
QUEST: Alison Kosik, we've got a very busy fall and autumn season ahead as we try and --
KOSIK: Certainly.
QUEST: -- the machinations, particularly October, which is always a difficult month in the markets. Alison, thank you for that. One stock to
keep an eye out of what happened today, Apple, which had reached such great highs after the stock was split, but now fell the best part of 4 percent in
one day.
You don't really need to look too far for the reason why Apple was down, it's being called "Bendgate" on social media. It doesn't really
matter what you actually call it, "Bendygate." It could also be "Update Nonsense." They're all the same things.
Apple has been having problems with its iPhone 6. Some people say the phone bends when you put it in particularly tight jeans, which these are
not tight, but if they were -- well, you might -- well, you can get the idea of what I'm talking about. Also, the question of iPhone -- IOS 8.1.
SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: Richard, you can bend the truth, you can bend it like Beckham, and even a few people --
RICHARD: Ooh.
BURKE: -- have managed to bend the iPhone 6-Plus. Tweets, complaints, photos, after they've had it in their pockets. So, one group, a group on
YouTube, uploaded this video, and they used brute force to show how they could bend it, but they used it in a way that you and I would never do that
to our iPhones, would we?
I actually spent all yesterday trying to bend it, and I could not manage to do it. I huffed, and I puffed, but I could not blow the house
down no matter how hard I did it. And finally --
QUEST: But nine -- nine iPhones -- Apple says today nine iPhones have been claimed to have been bent, and they've agreed to replace.
BURKE: Yes. They say if you come to the Genius Bar, they'll do a little visual test to see if it was you who did it or some type of defect,
and they will do it. That can happen with a lot of these type of phones. We'll have to wait and see if there's a bigger issue long term.
QUEST: So, this is really a question of whether there's a defect or whether there's something structurally flawed about the whole -- look, the
IOS 8.1. How did they -- look, they've only just done 8. 8.1?
(RINGS BELL)
BURKE: Well, 8.0.1 is just supposed to fix 8. There are always a few issues.
QUEST: Right.
BURKE: And then the update will fix it. This was so bad, people couldn't make phone calls, they couldn't use the ID, the fingerprint ID.
Richard, they're having to type in their passwords instead of using the fingerprint ID! It was a terrible day for millennials.
But this is the first time that I can remember that they actually had to pull back an update. Usually they just roll out another one. This
time, they had to do it, pull it back, and you saw it bring the stock down with it.
QUEST: Our very own millennial, our resident millennial, Samuel Burke, who will continue to try and bend his iPhone. Leave it just where
it stands.
When we come back after the break, Accenture just said it was adding jobs and expanding business in Costa Rica. This man has the job of dealing
with it all. He is the president of Costa Rica. He is joining me in the Presidential Suite after the break. Mr. President.
LUIS GUILLERMO SOLIS, PRESIDENT OF COSTA RICA: Thank you, sir.
(COMMERCIAL BREAK)
QUEST: It's the second day of the United Nations General Assembly, which is meeting here in New York. Costa Rica's president addressed the UN
for the first time this week, newly in office. Amongst the things the president talked about was respect for human rights and the peaceful
resolution of conflicts among world powers, very much on the agenda.
President Solis is also meeting with investors this week. He wants them to know about Costa Rica's thriving business climate. The consulting
giant Accenture has announced it would expand there. It's adding 300 new jobs.
It's good news after a bad week. Just earlier in the week, the ratings agency Moody downgraded Costa Rica's debt, citing a widening
deficit. Having mentioned that, I'm pleased to be joined by the president of Costa Rica. President Solis.
SOLIS: Hi, Richard. Thank you so much for having me in your program.
QUEST: What it shows, Mr. President, is the difficulty that emerging markets, developing countries, like yourself, are finding in these economic
times, where investment is so fickle and it can go in so many different directions.
SOLIS: Yes, and you have to be very creative, innovative, and show that you have what it takes for this investment to come to your country.
And this is what I've been doing. In fact, I came to the United States barely a month after taking office. I've been in office for four months.
This is my second visit.
And I'm very pleased, because people know that even with a downgrading, which we take very seriously, Costa Rica remains a very
serious partner, and we want to do business with them.
QUEST: You've got -- I mean, you're not the -- you're in good company with downgrades. But the reality is, you've got to get the deficit under
control. But at the same time, you have a large amount of social spending still to do. How do you balance that, Mr. President?
SOLIS: Well, wisely, I hope. In the sense that yes, I have to deal with the deficit. We're going to be transiting from a sales tax to a VAT,
and I hope that this will help. But fundamentally, what I want to do is make the economy grow. If this happens, then we will have the best fiscal
plan available. And this is ultimately what we all want.
QUEST: Do you worry about what's happening in the United States in terms of the ending of QE? Last year, the mere threat of the end of QE saw
huge dislocation for emerging markets. Now it's a reality. Now there could be tightening on the horizon. Do you stand to risk?
SOLIS: Oh, yes, very much so. But fortunately, we decided a ways back that we had to diversify our investments, and even when we have
excellent relations with the United States, around 50 percent of the investments come from the United States, we have other sources of
investment in Europe, in Asia. And therefore, we have been able to dilute the risk a bit.
QUEST: I want you to listen to the Danish trade minister who, talking about how companies investing in emerging markets, says that the CSR,
corporate responsibility, has to be considerable in these situations. Let's have a listen.
(BEGIN VIDEO CLIP)
MOGENS JENSEN, DANISH TRADE MINISTER: Ninety percent of the economic growth will be outside Europe in the coming years. So, of course, this is
also about having companies investing in the new developing markets. In doing so, some of these markets are in developing countries.
And we need companies to be there, we need companies to take social responsibility, and to act in these countries with decent labor conditions,
with decent environmental conditions, because that is also what consumers want in the future.
(END VIDEO CLIP)
QUEST: The reality is that too often, emerging markets have been seen as a bonanza, a modern-day gold rush. You have to protect against that.
SOLIS: Yes. And obviously, that means that we have to invest more in education. We're currently spending more than 7.2 percent of our GDP in
education. We have vowed to elevate that to 8 percent of our GDP as a constitutional mandate at the end of my presidency.
And we have to be very careful about, for example, income of the labor force. One of the reasons why people go to Costa Rica and business is done
in Costa Rica is because of the condition of the people, pretty good.
QUEST: When we put it together, Middle East ISIS, ISIL, and worries. Russia, terrorism -- Russia and Ukraine. China and the whole question of
North, South Korea, Japan in territorial dispute. Smaller countries like yours, you're at the whim of these events. It must be extremely difficult
to navigate an economic policy in that environment.
SOLIS: Yes, because we have to remain stable, yet we have to remain faithful to our principles. That's why I was so strongly advocating for
human rights respect, for the end of conflicts, for de-nuclearization in the United States at the United Nations yesterday.
Because we feel that small nations ought to be consistent with their principles and values, and these are the principles and values my country
has upheld for more than 50 years now.
QUEST: Mr. President, thank you, sir.
SOLIS: Thank you so much.
QUEST: Thank you for your visit. Thank you very much, indeed.
Now, Chile's president says her country's success should be measured in terms of equality, and there's still some way to go. Is at down with
President Bachelet and asked her if the past economic strategies that led Chile to becoming a beacon for prosperity are the best strategies for its
future?
(BEGIN VIDEOTAPE)
MICHELLE BACHELET, PRESIDENT OF CHILE: I think we have to maintain all the good things that we have done in the past, and that's like free
trade agreement, an important, I would say, give a lot of importance to trade, attract foreign investment, and all that. We need to continue doing
that.
But even though this Chilean economy is so recognized in the world, according to the OECD, we are in the fourth-worst place on the 34 economies
in terms of inequality. So, it is about doing the right economic things, but that economic success needs to be translated into improvement of
people's lives, into possibilities, on better education, on better skills, et cetera.
So, people not only look at the television and inform themselves that the economy is going well, but their lives are going not that well.
QUEST: The fascinating part of what you've just said is that the haves and the have-nots, the rich versus the not-rich. That is the
argument of our era, is it not, Madam President? That is the defining argument post the Great Recession, would you agree?
BACHELET: Yes. I think inequality is at the center of the discussions today. But because it's very complicated -- in my country,
everybody says creation of jobs is the priority, and of course it's true.
But the sad thing is that when you don't have a good environment in terms of good jobs, decent jobs, because in our country, poor people do
have jobs. But those jobs have very small -- low salaries that won't permit them to get out of poverty.
So, we need to -- not to try to make sort of laws against those. It's how everybody can really move forward in a better way.
(END VIDEOTAPE)
QUEST: President Bachelet with the issues of inequality, something you'll be hearing a lot more about, of course, in our coverage in the days,
weeks, and months ahead on QUEST MEANS BUSINESS.
After the break, ISIS may be the most well-funded terror group in history. We'll explore how the US plans to stop the flow of money to the
terrorism and the terrorists of ISIS.
(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 will always
come first.
The president of the World Bank says Africa is facing a fundamental crisis if the spread of Ebola is not halted. The organization's announced
it'll nearly double its funding to help fight the disease.
World leaders met at the UN today to discuss the global effort. Speaking to me shortly after that meeting, President Jim Yong Kim said time
is running out.
(BEGIN VIDEO CLIP)
KIM: We have a choice. Either we move like we've never moved before in the next few weeks, or we're going to have to get our heads around a
response that truly will be unlike anything the world has ever tried before.
(END VIDEO CLIP)
QUEST: The head of the FBI says that the United States believes it's identified the ISIS militant seen in video clips which show the beheadings
of two American journalists and a British worker. The FBI director James Comey did not name the suspect, who speaks with a British accent. It's not
clear if the masked man carried out the killings himself.
US officials have responded to claims from the Iraqi prime minister that ISIS is planning to attack subway systems in New York and Paris. US
intelligence officials say the US government is not aware of any terrorist plot. According to the media reports, Prime Minister Haider al-Abadi told
reporters at the UN that Iraq had uncovered plans for an imminent attack.
British police in London have arrested nine men on suspicion of terrorism-related offenses. Media reports in the UK say the radical cleric
Anjem Choudary is among those being held. The police say the arrests are not in response to any immediate public safety risk.
The top law enforcement official in the United States is resigning. The attorney general Eric Holder is to step down after six years. These
are live pictures from Washington. Mr. Holder is the first African- American attorney general in the United States. President Obama, of course, warmly congratulating him for his term and thanking him for his
service in office. No replacement has yet been named.
It could not be clearer. As part of the U.S. policy to degrade and destroy ISIS, one of the core tenets is attacking the money-making machine
of the organization. Airstrikes were launched in a remote part of Syria on Wednesday night. Now, they were aimed at the mobile oil refineries that's
used by the terrorist groups. Oil production said to be generating $2 million a day for ISIS. Ben Wedeman's our senior international
correspondent - he's in Erbil, Iraq. It sounds extraordinary this idea that not only, Ben, could these terrorist groups get hold of a refinery,
they could continue the technological production and, Ben, sell the goods and pocket the money.
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we understand that these refineries are really not sophisticated, modern
refineries or anything that might be able to be described as such. These are really crude units that they can move around. They produce about 500
barrels a day a piece. So they're not really the kind of things you might see in the Gulf - those great big structures with lights all over them.
They're quite small, production is low, but they do provide - help provide - the money that keeps ISIS running. They need to pay their salaries,
they need to pay people for food, they need to give them food, they need to provide services. And without that money, ISIS could come to a screeching
halt. So, there's logic behind the U.S. strikes. The question is by knocking out a few of these small units, how much of a dent are they going
to make in ISIS' --
QUEST: Right.
WEDEMAN: -- money-making machine.
QUEST: But the fascinating part is, Ben, the - you know, no axer (ph) - they take these 500 barrels a day, but somebody has to buy them, somebody
that has to pay probably with cash for them. That cash has to filter into the system. And the reason I put all this to you, Ben, is because it
suggests infrastructure. It suggests a working organization.
WEDEMAN: Well that's what we've seen created, certainly in Raqqa in North Central Syria, is that ISIS has managed to put together an
administration, an administration which of course its form of justice is rather crude to say the least. But they do have a police system. They
have traffic cops, they've set up sort of schools which may not be teaching the sort of education you'd like - we'd like - our children to get, but
they are schools. There are clinics, there are courts. There is sort of the rudimentary structures of a state, and therefore it shouldn't come as a
surprise that there probably is the technical skill to put together these crude units to produce oil and therefore, yes, I mean, it comes as a
surprise, but the closer you look at ISIS, the closer it looks -- prior perhaps to these airstrikes - to an emerging statelet in this area with all
that comes with it. A bureaucracy, government and everything along those lines.
QUEST: Ben, than you for putting that into perspective. Much appreciate you. Ben Wedeman joining us from Erbil tonight. President
Obama declared the United States is going to take the fight to ISIS and that involves killing the funding that we've just been talking about.
Killing that funding which might support the richest ever military group. Join me at the Super Screen, and you'll see what I mean. This is ISIS and
this is how it works. This is where ISIS gets its money from.
The first of course we've got basically three areas - there's energy that we've just been talking about with Ben Wedeman, the capturing of
refineries that sells the oils, you've then got illegal activities - extortion, spoils of war, drugs, money laundering - and I think this is
obviously also of crucial importance and where it comes from - you've got donations. Wealthy private donors in Kuwait, Qatar, Saudi Arabia, quietly
continuing to fund ISIS. But what of course it all shows when you put it into it is the airstrikes which are aimed in part at disrupting the
revenues.
The new U.S. Treasury sanctions are aimed at disrupting the flow of donations. They make it more difficult for supporters to make use of the
U.S. financial system. Fawaz Gerges is the chair of Contemporary Middle East Studies for London School of Economics and has written "The New Middle
East: Protest and Revolution in the Arab World" joins me now from CNN in Rome. Every time I hear you, sir, talk about ISIS, I start to become - I
get a much greater understanding. But, sir, I also become more concerned because you're suggesting it has a professionalism - if that's the word -
that makes it deeply disturbing.
FAWAZ GERGES, CHAIR OF CONTEMPORARY MIDDLE EAST STUDIES, LSE: Well absolutely. I mean, I think like other organizations, Richard, ISIS'
killing machine is powered by resources. It's powered by money, its oil, by multiple resources. You've been talking with Ben about oil. We think
that they generate about $2 million a day. We have not talked about the taxation that generates tens of millions of dollars in ar-Raqqa and Deir
Ezzor. We have not talked about the $125 million generated by kidnapping and ransom money. We have not talked about the tens of millions of dollars
that ISIS has been able to generate by basically seizing the banks in Mosul. Criminality - you have many wealthy businessmen -
QUEST: Right.
GERGES: -- in the Gulf and other places who have been donating to ISIS, --
QUEST: But why?
GERGES: -- so this is an organization -
QUEST: Why? Let me ask you - why are they, I mean, is it political - is it political gain that they want? Are they donating for purposes of
advancement - they want ISIS to allow them extortion, drug-trafficking, oil rights? What merit is there for these wealthy individuals to fund an
organization whose sole goal is murder and beheading?
GERGES: You know President Barack Obama had a really a fascinating line in his speech as you know, Richard. He said it's the height of
hypocrisy when some entities make a fortune out of the globalized economy and then they turn around and donate money for organizations that basically
murder children and commit massacres. But let's not forget, Richard, that there is multiple civil wars taking place in the Middle East. Let's not
forget how Syrian civil war) has basically, I mean, poured gas on a raging fire. It all started three years ago. And you had - I mean - tens of
millions of dollar - well hundreds of millions of dollars, probably billions - flowing into Syria -
QUEST: Right.
GERGES: -- initially we didn't know about the Islamic State -
QUEST: All right.
GERGES: And that's how it all started. And of course - and that's how it has built an infrastructure in Syria. Syria, Richard, has been
pivotal. Not just in terms of fighting skills, but also in terms of finding a social base. You and I were talking about the money, but the
most important thing that ISIS has been able to blend itself with local communities and portray itself as the vanguard that protected -
QUEST: All right.
GERGES: -- persecuted Sunni communities in Iraq and Syria.
QUEST: But that money - that money is what is oiling - pardon the pun - the mechanisms to buy their way, and I mean to a certain amount of brute
force. But if you can bribe, you can corrupt, you can cajole using that money, you're ahead of the game.
GERGES: Absolutely. And that's why you follow the trail of the money. ISIS is self-sufficient in the short term. But remember it has
between 30 and 40,000 fighters. It pays about $150 for every fighter when they are fighting in the field. So you need a lot of money in terms of
families, in terms of fighters, in terms of salaries, in terms of ammunition. In the short term it can sustain itself. But if you really
starve it financially, you can paralyze it -
QUEST: Right.
GERGES: -- and basically, I mean, shut it down in the midterm and the long term.
QUEST: Good to see you, sir. Thank you for talking the financial side with us this evening. We needed it into perspective and you've
elegantly done it for us. Thank you. Now, new terrorism threats means security checks at the airport are as important as ever. We talked about
that many times. Where is the new idea in screening that comes in that's based on body heat? The inventor thinks it will save time and lives.
We're going to test out body heat as airport security when we come back. "Quest Means Business"
(COMMERCIAL BREAK)
QUEST: This week's "Make, Create, Innovate." You've heard me talk tonight about suspected terror plots and arrests linked to terror in
subways and other transportations. Well inevitably we are living in a world of ever-tighter security. And when you're at the airport it makes
traveling harder and slower. Think about it - whether it's the old days of patting down or the wand or the new ones where you have to stand like this.
And all the things that you've forget right the way down to your collar stays, which of course can set off machines and if you're wearing braces
and things like that. Well, now there's a new body scanning machine that allows all this to happen, and it's all to do with physics and body heat.
And as Nick Glass pointed out, you basically with this machine - it's all done with body heat on the move.
(BEGIN VIDEOCLIP)
NICK GLASS, MADRID SPAIN: We've all experienced them, we all dread them - long queues at airport security. How do you improve screening and
simultaneously speed up the whole process? Well here in a small unit in an industrial park near Madrid, they think they've cracked the problem.
DR. NAOMI ALEXANDER, CO-INVENTOR, ALFA3: We've invented and developed a security scanner that can automatically detect objects that are hidden on
a person as they're walking through the system.
GLASS: Dr. Naomi Alexander is a physicist. Her expertise is a bit of a mouthful - passive millimeter wave imaging.
ALEXANDER: It's a type of thermal imaging. We can see through clothing and so we can detect any object that's hidden under clothing and
on the body.
GLASS: In 2006 at the age of 25, she co-founded a company Alfa Imaging to develop and improve scanning system.
ALEXANDER: The main advantage is that it's a walk-by solution which means that it detects while the person is moving past the system.
GLASS: Like something from science fiction in the 1990 film "Total Recall" - x-ray scanners catch Arnold Schwarzenegger's character trying to
slip past security with a gun. In reality, Dr. Alexander's system works more like a camera. But instead of taking you picture with harmful x-rays,
it detects your body heat. If you're hiding anything, it'll be a different temperature to your body. The system picks this up and raises the alarm.
Everyone will be scanned on the move. There'll be no need for individual scans or pat-downs.
So let's hide something - something that could be drugs or explosives. Tucked it in my wallet pocket, and give the system a go. Sure enough, it
found the bag. I thought I'd give it one more go and pop the packet somewhere else. NATO has shown interest. In 2010 Dr. Alexander and her
team were invited to test the system at an airfield in Kandahar in Afghanistan.
ALEXANDER: We were there for a week, and we would screen - I think it was something like 3,000 people were coming - come on to base.
GLASS: The system is expensive. Apparently a single unit costs over a quarter of a million dollars. But still, Dr. Alexander's beginning to
sense there is commercial interest out there.
ALEXANDER: You have the entrance to a government building for example, the sporting event, concerts, so the police are very interested.
GLASS: There's clearly an excitement here and a pride at what their machine could do beyond cutting the queues.
ALEXANDER: But of course it would be - it would be fantastic to see that we've actually developed something here that is useful and that can
potentially save lives.
(END VIDEOCLIP)
QUEST: Got to admit, Jenny Harrison, that is absolutely fascinating - the idea of just keep walking and it'll be -
JENNY HARRISON, WEATHER ANCHOR FOR CNN INTERNATIONAL: I know.
(CROSS TALK)
HARRISON: Couldn't agree with you more, Richard. And certainly for you with all your traveling - my goodness that'd cut down on the - on the
time, wouldn't it? And talking about traveling, I don't think you got to Scotland. Just about everybody did - oh that's right, you were on your
vacation. You were in Spain, weren't you?
QUEST: Ah.
HARRISON: Sunny --
QUEST: All right.
HARRISON: -- Spain.
QUEST: It was very pleasant --
HARRISON: I'm sure you were.
QUEST: -- (inaudible) pleasant.
HARRISON: Yes but nice of you (ph) but listen, weather meanwhile for the Ryder Cup which of course begins on Friday. Not surprising. Got a
little bit of cloud come across from last year (ph). In fact there's an area of low pressure well to the north. It's just the tail end of that
front which is working its way across Scotland. In the last few hours you see one or two showers. Here we are. Gleneagles - this is where of course
the tournament is taking place from, so weather right now, not too bad temperature-wise. Oban not reporting - they've got sort of a cloudy
evening but not bad temperature-wise. In fact, -- already -- or still I should say - not already, but still - we're at 17 Celsius in Aberdeen, and,
what, it's coming up to 10 o'clock at night up there. So, not a bad temperature.
For the next few days it really doesn't look too bad at all. Shouldn't really see any rain, maybe just the outside chance of a passing
shower on Friday. Should be sunny. Not quite as good as it sounds - I'll show you why in just a moment. Friday - Saturday we've got a bit of patchy
cloud. Sunday's the warmest day - 18 degrees Celsius. Quite a bit of cloud around, maybe that's not a bad thing - probably quite good for the
golfers - no sun shining in their eyes. However, on Friday, despite the fact we've got some very nice sunshine, we've also got some pretty strong
winds coming in from the West, and at times, that wind could gust to about 50 kilometers an hour. So have to see how the golfers fare with that.
There's that low that's the one responsible for the windy conditions as well as the showers. Meanwhile, more heavy rain across the southeast of
Europe, and still very warm across the west. So it continues to warm up actually as we go through the next few days. But despite all of that,
we've got warnings across central Europe, also down into northern parts of Africa - usual reasons - rain, severe winds, and also possibly hail. And
look at this, Richard, I thought you'd like this. Taken inland in Richmond Park. It is the beginning of the rutting season - that is why I'm showing
you these pictures,
QUEST: Ah.
HARRISON: -- and you can see the - look at that. I mean, look at that, Richard - it's only because you can see the background -- you can see
London there - the skyline - that you realize it's actually not up in Scotland but in fact is indeed in Richmond Park just outside London. So
despite the fact it looked very autumnal in that picture, there's the warm up for the next few days. All of western Europe - maybe about 5 even 6
degrees above the average. (Inaudible).
QUEST: Yes I do we may need to point out that rutting is an agricultural thing - we don't want to -- it's nothing -
HARRISON: Yes. Well, no, I was using the proper technical term.
QUEST: You were.
HARRISON: (LAUGHTER).
QUEST: But just in case viewers thought we were being a little bit risque.
(LAUGHTER)
HARRISON: Good. I'm glad we cleared that up.
QUEST: Good.
HARRISON: Good.
QUEST: Thank you. Jenny Harrison of the World Weather Center. In just a moment, we'll be stepping into the elegant shoes of one of China's
top models. Liu Wen lets us see one of the secrets of fashion week in Paris.
(COMMERCIAL BREAK)
QUEST: A Paris Fashion Week. One of China's top super models is working the catwalkers - few ever do. It's Liu Wen. She's ranked by
"Forbes" as one of the top five most bankable models in the world today. On Wednesday she was modeling for Val Mein (ph). Now, the inspiration for
this show - risque perhaps - transparency in terms of fabric and in terms of freedom of information to things like Twitter and Instagram. Herself,
she has about 38,000 followers on Twitter, and as she explained to Myleene Klass, in her job getting online is just as important about what you do on
the catwalk.
(BEGIN VIDEOCLIP)
LIU WEN, MODEL: My name is Liu Wen, I'm from China. I'm a model.
MYLEENE KLASS, HOST OF "FASHION SEASON: PARIS": Liu Wen is more than just a model. She's one of the world's biggest, and a woman who
accumulates firsts. The first Chinese model to walk a Victoria's Secret show, the first Asian to front a world-wide Estee Lauder campaign, and the
first Asian to make it into "Forbes" list of the top five highest-paid models in the world. Liu Wen may have a small ego, but she's a big deal.
WEN: I love Paris Fashion Week because this is a very beautiful, beautiful, beautiful city. But as a model I live a little bit crazy. When
I'm in Paris, I have no idea about my schedule. Always know everything last minute. You don't know exactly what you're doing. You only know you
have to wake up, the driver take you to go to the backstage, you had a makeup, a hair and now walk in the show and the driver take you to go to
another show. Sometime you know we had a really crazy schedule. Once I did 27 shows in London, and then probably like a 22 or 23rd show in Paris.
I don't know how I can - did (ph) it.
KLASS: Models come to Paris with no confirmed bookings. They arrive hoping to get chosen in castings that often take place just 24 hours before
a show. They begin by sitting it out, waiting for a call from a designer. When you're as big as Liu Wen, you know the phone will ring. You just
don't know when and who will be on the other end. In one season, Liu Wen walked a record 74 shows. Looking fresh in the midst of such intensity
requires a knowledge of how to survive.
WEN: Always trying to keep something sweet. Sometime when I'm so exhausted or something, I just have one ice cream. I just feel my energy's
back. Flat shoes is very important because doing the shows most of the time, we're wearing high heels. You know, after those seasons almost six
years doing shows, I still don't really know Paris very well. That's why I always bring maps for me, always I bring very cute (inaudible). Sometime
on the evening I'm just doing a little bit of massage to make my body more relaxed.
KLASS: Today modeling is about far more than just having a pretty face. It's about developing a distinct personality and finding yourself
with the use of social media.
WEN: The world have so many beautiful girls or womans or mens, you know. It's very important that you have your own personality. I think
Instagram is the one of the interesting thing to show your personality as well. I have a few followers. They always like my picture. I think
that'll make me very confident as well because they life my stuff, yes.
KLASS: Later this year, she will launch her own lifestyle blogs where she'll discuss everything from her taste in fashion to her taste in travel.
As the fashion world continues to woo the East, more than a few will be tuning in to the thoughts, ideas and images of Liu Wen. Myleene Klass, CNN
Paris.
(END VIDEOCLIP)
QUEST: My word. Work hard, don't they? Who was it who famously said, she wasn't getting out of bed for less than $10,000? We'll have a
"Profitable Moment" (RINGS BELL) after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." A catastrophe, a potential disaster requiring a response never seen before. A fundamental crisis.
Those are the words of the president of the World Bank on this program this evening concerning Ebola. Yes, to be sure, the world community is starting
to pick up steam. It may be too little and it may be certainly too late. Unless there's a dramatic improvement, we will be looking at people be
affected in the tens and hundreds of thousands. And that's "Quest Means Business" tonight. I'm Richard Quest in New York. Whatever you're up to
in the hours ahead, as always, (RINGS BELL) I hope it's profitable. See you tomorrow.
END
