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Quest Means Business
US Rally to End Rocky Week; Global Fight Against Ebola; WHO Ramps Up Ebola Fight; Serbia, Albania May Face Sanctions Over Football Brawl; Nigerian Government Makes Deal for Schoolgirls' Release
Aired October 17, 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, CNN HOST: A week that you may want to forget. The Dow Jones bell is ringing. The market is up. But what a turbulent time we've
had. Look at that man hit the gavel, and I'm not surprised, as we bring trading to an end. Across the globe, trading is finished. It's Friday,
it's October the 17th.
Tonight, it's a case of four slumps and a rally. The US markets end a brutal week. They end on a high note.
Also, a Texas hospital worker's quarantine on a cruise ship. We have the chief exec of the cruise company, who tells me what's being done and his
worries.
And the brawl that sparked a diplomatic row. The prime minister of Albania here tonight on the football fracas.
I'm Richard Quest. It may be Friday, but I still mean business.
Now, as the closing bell rang and the market ticked over towards the end, this was the sort of number that we had, around 210 points. But at the
close, the Dow Jones Industrials were higher by some 260-odd points. Not the highest number of the year, but still a bumper day so far. It's up 268
points, that is a gain of 1.6 percent on the day.
Well, you need -- and I need -- to take a breath. We gain our composure. We all need to look, because the stock market ride is over, and for the
week overall, it's had another huge swing. The Dow has enjoyed one of its best days of the year so far. It's not at record. GE, Morgan Stanley's
earnings, the head of the St. Louis Fed suggests QE could be extended.
But put this number, up 262, a gain of 1.6, put that into the perspective of how the actual week ran. Now, on Monday, we were down 223. Tuesday
down 5. Wednesday down 173. Yesterday, when we were at the New York Stock Exchange together, down 24. It's a loss of about 450 points.
Now, knock off that, and you're still down a couple of hundred points for the week. It's around 140 points lower from where we started. Let's just
put that hour and so that we've got a bit, up to 62. There you are, a bit of encouragement there for the week so far.
Whichever way you look at it, a 700-point intra-day swing over the course of the week. It wasn't just the Dow in -- that had a good day, up 262.
Look at the European markets. Best of the session in Frankfurt, where the DAX was up 3 percent in a day, London up 1.8, CAC nearly 3 percent, Zurich
up 2.39.
It all comes after European stocks had the best session in more than two years. ECB member boards saying the central bank will start asset
purchases in a few days. Those sort of gains show the volatility we're seeing in the market. Back to look at the New York markets, the Friday,
and you get a glimpse of how they all finished their trade.
The positive numbers do not change a single fact on the underlying economics. Most of the gains for the year so far have been wiped out. We
now need to put all of this into some perspective. Joining me now to talk about this, Sir Martin Sorrell --
MARTIN SORRELL, CEO, WPP: How are you?
QUEST: -- joins me and Professor Richard Clarida --
RICHARD CLARIDA, GLOBAL STRATEGIC ADVISOR, PIMCO: Good to see you.
QUEST: -- joins me to talk about this. Before we get to our discussion in terms of what this all means, we need to hear some of the voices that we've
heard during the course of the week, that really made it clear how awful it was.
(BEGIN VIDEO CLIP)
DIANA SWONK, CHIEF ECONOMIST, MESIROW FINANCIAL: The proof is in the pudding. Well, for Europe, there is no pudding, and they're hungry now.
And I think that's the key issue, is that markets are finally realizing.
MOHAMED EL-ERIAN, CHIEF ECONOMIC ADVISOR, ALLIANZ: What you're seeing right now is that the paradigm is changing. And when paradigms change,
technical disruptions occur, liquidity disappears.
ALAN VALDES, DIRECTOR OF FLOOR TRADING, DME SECURITIES: These are emotions on steroids right now. You've got it from every part of the globe. You've
got Europe looking really, really bad, and you've got events out of Africa looking poor. The Mid East and here in America.
MARTIN WOLF, "FINANCIAL TIMES": I don't think there's anything surprising that this correction is occurring. The only question is, how bad could it
become?
(END VIDEO CLIP)
QUEST: The two views that we're going to get of our guests, the economist, the business leader --
SORRELL: The failed economist.
(LAUGHTER)
QUEST: What? You're putting --
CLARIDA: No, I was struggling.
QUEST: Oh, I was going to say --
(LAUGHTER)
SORRELL: Me! Me, me, me.
QUEST: How much of this -- start with you, Martin -- how much of what we've seen affects you in the real life of dealing with your business, and
how worried are you?
SORRELL: Well, it all does, because this is the culmination of a few months of increased geopolitical uncertainty. It's not really about what's
been happening economically, but our clients face increasing uncertainty.
The big uncertainty at the end of August, when I was at the World Economic Forum summer meeting in Geneva was the Ukraine. That quickly switched to
China. I actually think the tipping point was Hong Kong and the development of that situation. And then, that's been reinforced, if that's
the right word, by Ebola.
So, all this -- all these things add to all the uncertainties that we've had for many years. Hard-soft landing in the BRICS, the US and the US
recovery, the deficit, leverage, the Middle East, and then the European situation. And the European situation appeared to be under control, but we
see --
QUEST: But it was not.
SORRELL: Well, today, the recovery is partly due because he does have some clothes.
(LAUGHTER)
CLARIDA: I think Sir Martin said said it well. I think we had a re- pricing in the last week of the global outlook. It was a very downcast IMF meeting, the new mediocrity, as Christine Lagarde said it. You had Stanley
Fischer there saying that's in play for the Fed, talking about the dollar. Ebola. It all comes together.
QUEST: It all comes together, and it chose to come together over the last ten days. But are economies, Richard, that weak?
CLARIDA: Well, they're weaker than folks thought. We could be in the third recession in five years in Europe. People keep marking down -- we
mark down our outlook for China. And then you throw into this mix the fact that policymakers are worried, Stan Fischer, Christine Lagarde. And then
Ebola on top of it. So, yes, you've had a re-pricing of risk and a re- pricing of the outlook, absolutely.
SORRELL: And I would say that's confirmed by what we see in a third quarter was not as good as the second quarter or the first quarter for many
of our clients. And you've seen a general tightening, Richard, as a result of this increased uncertainty.
Europe -- you look at Europe, look at the key economies. Germany, not in great shape. The UK, some people are even saying the UK, although it's
growing at about 3.5, 4 percent, may be tailing off. France, big problem. Italy. Renzi came in, a little bit of optimism, but then, it goes
backwards. Spain is probably the only economy --
QUEST: How --
SORRELL: -- that's really recovering.
QUEST: How many countries are you in?
SORRELL: A hundred and eleven.
QUEST: A hundred and eleven.
SORRELL: It would've been 112 if Scotland had gone independent.
(LAUGHTER)
(QUEST RINGS BELL)
QUEST: Let's leave that -- enough on our table tonight without that. Of those 111 --
SORRELL: Yes?
QUEST: -- which ones are giving you concern?
SORRELL: Well, Brazil in terms -- Russia, obviously, right? And the Ukraine. Brazil, depends on what happens in the election. If Neves wins,
which the polls are running 51-49 in favor Neves, it's going to be very tight. And Dilma has the purse strings, and she can pull a few levers, but
those are the countries --
I'm worried about Western continental Europe. I'm worried about France. I'm worried to some extent about Italy, I'm very bullish about Renzi, but
it's a question about whether he can get it.
India is very -- the expectations are very high. Modi has made a big difference. And then China, which is the real delta in our growth as an
industry, providing about a third of the growth, that's the key one.
QUEST: China?
SORRELL: What happens in China, yes.
QUEST: What happens in China is the key, but what happens in China, what does it do for economies elsewhere? Because we've had a slowdown, it's
factored in, the Fed's factoring all these factors, so they say.
CLARIDA: So they say. Which of course is a bit of a breath of fresh air for the Fed. I think the thing with China that's tricky is they're trying
to navigate this transition from an export model to consumer model. But they're also trying to navigate a transition on reliance on a shadow-
banking-levered scheme that they were trying unwind.
So, I think the verdict is out, but I'm betting on Chinese to pull it off. But obviously, China at 7 is not China at 10 or 12 percent growth, which is
what we had in the old normal.
SORRELL: But it's China, which is much bigger --
CLARIDA: Exactly.
SORRELL: So, 7 on the bigger is better than 10 on the smaller.
CLARIDA: Absolutely, yes.
QUEST: Tonight, viewers watching around the world are saying, well, this is all very interesting, but are these men worried? Are -- and if they are
worried, should I be worried?
SORRELL: Well, I'm always worried, Richard.
QUEST: Well, then let's start --
SORRELL: It pays to be paranoid.
QUEST: Sorry?
SORRELL: It pays to be paranoid.
QUEST: You're paranoid and worried?
SORRELL: Well, Andy Grove famously said that. No, I think what we see is growth sub-trend worldwide. Certainly before Lehman. Post-Lehman, post-
2008, the world is not growing as fast in nominal terms as it did before.
QUEST: Nor will it.
SORRELL: Nor will it, I agree with you. And I think rates will stay lower longer.
CLARIDA: Yes.
SORRELL: I think people -- we've got a taper tantrum going on here, basically, in the markets, I think, to some extent.
CLARIDA: That's our view, is that we're no longer recovering from the big recession, we're converging, but to very disappointing growth rates. So,
much lower in the US, Europe, Japan, and China than before Lehman Brothers. That's a key factor.
And also, we completely agree, because of this leverage overhang and because of this reality, central banks are on hold, and those that are
hiking, like the Fed, will do so at a very modest pace.
QUEST: Are you worried?
CLARIDA: I think the left tail risk tends to get under -- so this summer, when the VIX and volatility numbers got down to these levels, I -- whenever
you see people getting complacent, you get worried. And some of that's been taken out.
SORRELL: Now, there is the opposite view as well, which is IMF was so depressed and everybody was so unanimously depressed, now this is the time
--
CLARIDA: Let me say the area where I'm actually optimistic is the US. I think the outlook for the US, relative to the rest of the world, is as good
as it's been in a long time.
QUEST: I need to just --
CLARIDA: The oil revolution.
QUEST: -- throw into this mix, finally and briefly, Ebola, as it seems to get -- the question, of course, is one of confidence versus reality, it's
one of whether African growth finally spills over into the rest of the world. So, is this our biggest threat tonight, do you think? We'll finish
with you a bunch. Let's start with you.
CLARIDA: I don't know if I'd say it's the biggest threat, but I think there's a loss of confidence in Washington and in authority in dealing with
it. They appear to be behind the curve, and I think that plays into a theme that people have. And obviously, it's a wild card -- 30,000 people
died last year of the flu. Obviously, we have to put this in context. But is a fear of the unknown.
SORRELL: Yes, it's not the worst. It's not the most outstanding. But it's the Archduke Ferdinand. It's what's the incident that pushes us over
the edge. You've seen the market volatility this week, and I don't think the Ebola or threat of an epidemic has helped.
But if you went back -- we were just discussing before we went on air -- it's 1918, 1920, 50 or 100 million people died because of Spanish Flu. So
--
QUEST: I don't remember it.
(LAUGHTER)
QUEST: Gentlemen, thank you very much, indeed.
CLARIDA: As always, good to see you.
QUEST: Good to see you, thank you very much, indeed.
Now, still to come, we're going to continue looking at Ebola. This time, we're going to talk about fighting the fight and funding the fight. The
steps being taken by the private sector against the virus. It's QUEST MEANS BUSINESS on a Friday.
(COMMERCIAL BREAK)
QUEST: More than 4,500 people have now died from Ebola, and despite the rising death toll in West Africa, there are some signs of hope outside the
worst-hit areas. Senegal has now been -- officially declared Ebola-free. The WHO has praised the West African nation for successfully containing the
one and only case of the virus which it had there.
The US nurse who contracted Ebola is described as in a "fair" condition. She's Nina Pham, and she's been transferred from Texas to a hospital in
Maryland. And 15 out of the 18 people being monitored in the Spanish hospital are showing no signs of Ebola as their quarantine period comes
towards a close.
Now, factor all this in. There are three pillars in this global fight, now, against Ebola. The United Nations is spearheading the effort. It's
calling for a $1.8 billion at the end of last month. Now, that United Nations effort, they wanted $1 billion. Only $100,000 has come in, and
that's from Colombia. Not surprisingly, the secretary-general said he was very disappointed.
The next pillar is individual countries. The United States has said it's providing or going to appoint an Ebola czar, says President Obama, 4,000 US
national guard troops are going to go the region as necessary, and Senator Kerry -- or now Secretary of State John Kerry says these steps are just the
beginning.
(BEGIN VIDEO CLIP)
JOHN KERRY, US SECRETARY OF STATE: No matter what we have already committed, it is clear every one of us that we have to do more and we have
to do it quickly. So, of the $1 billion in needs that are estimated by the UN, I regret to say, we are barely a third of the way there.
If we don't adequately address this current outbreak now, then Ebola has the potential to become a scourge like HIV or polio that we will end up
fighting, all of us, for decades.
(END VIDEO CLIP)
QUEST: A stern warning from the US secretary of state. Staying with the countries and what they're doing, the United Kingdom is sending a British
Royal Navy warship, a hospital ship, to Sierra Leone. There are medics, there are soldiers, there are engineers onboard.
So, you've got the UN, you've got the countries, and of course, you've got the private sector. This week, US companies pledged $19 million in cash
and kind. Now, you've got to compare that $19 million with the $300 million offered in the aftermath of the Japan earthquake and the tsunami.
So, the pillars that are holding up currently the Ebola fight. For many, all of this is too little and too late, and that charge has been leveled
particularly against the World Health Organization. Our senior international correspondent is Nic Robertson.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): As the Ebola death toll spirals, health officials the world over are speeding
their response. At the UN in Geneva, the WHO, the World Health Organization, announced their new measures.
ISABELLE NUTTALL, WHO DIRECTOR, GLOBAL ALERT AND RESPONSE: Health care workers are on the front line. We will never say that enough. They need
to be protected, they need to be well-trained.
ROBERTSON: For health care workers, that can't come fast enough. Front line medics, like MSF/Doctors Without Borders at breaking point and
frustrated with the WHO's slow response.
The first death, late December last year in Guinea. It was March 22nd before an Ebola outbreak was confirmed. March 30th, neighbors Liberia and
Sierra Leone confirmed their first cases. April 1st, MSF announced the situation was unprecedented. The same day, a WHO spokesman played down the
problem, saying --
GREGORY HARTL, WHO SPOKESMAN: What an outbreak is and what we are dealing with is limited foci, limited geographic area, and only a few, let's say,
chains of transmission.
ROBERTSON: It was August 8th before the WHO declared an international health emergency.
MARGARET CHAN, DIRECTOR-GENERAL, WORLD HEALTH ORGANIZATION: A public health emergency of international concern.
ROBERTSON: Since then, the death toll has climbed five-fold. Skilled health care workers scared off by the risk of infection.
ROBERTSON (on camera): What has slowed the response or the recognition of how serious this is?
NUTTALL: The fear factor. The fear factor. As simple as that. When we said we need foreign medical teams to be deployed.
ROBERTSON (voice-over): At the front line of health care in Africa, MSF continues to ring the alarm. What they want from WHO now is action.
MARIANO LUGLI, DEPUTY OPERATIONS DIRECTOR, MSF: What is written on paper makes sense. How they coordinate themselves to insure that the speed is in
the right track, that's the real challenge.
ROBERTSON (on camera): Speeding up the response. On this, everyone here at the UN and in capitals around the world, and on the front lines in
Africa agrees. Every day, critical to containing this crisis.
Nic Robertson, CNN, Geneva, Switzerland.
(END VIDEOTAPE)
QUEST: Countries, United Nations, private sector. Add into this, now, star power. When David Beckham decides to get involved, the message goes
worldwide.
(BEGIN VIDEO CLIP)
DAVID BECKHAM, FORMER FOOTBALL STAR: I was inspired and honored to have met so many amazing people and the challenges they face in a country then
devastated by civil war.
(END VIDEO CLIP)
QUEST: David Beckham talking about UNICEF, talking about Ebola, talking about the challenges and the need for assistance. Our chief medical
correspondent is Dr. Sanjay Gupta. He joins me now. Is it your feeling, sir, that finally there is, if you like, the heft and support that has --
that you have been talking about being necessary for so long?
SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, I think so. Obviously, this whole scale of this thing has gotten much bigger, I think,
than anyone anticipated, and we hear about some of the admitted blunders from the World Health Organization now.
Keep in mind, Richard, the history or the context is that since 1976, there have been about a couple dozen or so of these outbreaks, these Ebola
outbreaks in Central Africa primarily. They've always been controlled. And I think that was sort of the feeling when this started again in the
spring of this year.
The problem was that we live in a much different world, and I don't think people anticipated from the World Health Organization just how much of an
impact that would have. Porous borders, people moving across borders, broken-down health care systems, and this thing got out of control -- their
words, not mine -- got out of control very, very fast.
But now, the -- some of the basics still do apply in terms of controlling this, and I think you need the heft to make that happen. We also have some
good news, Senegal now declared Ebola-free. Nigeria, likely to be declared Ebola-free sometime soon as well.
QUEST: Right.
GUPTA: So, there has been some success stories in the midst of all this --
QUEST: Sure.
GUPTA: -- that paint a more optimistic picture.
QUEST: This -- issue of whether to stop -- travel bans form those from the region. I mean, the screening at airports, you and I can debate whether or
not actually it's more good PR than actually has any meaningful response. But travel bans, Sanjay. The experts say not.
GUPTA: Yes, I think -- and when you look at it, and when you hear this, on first blush, you think, well, of course that makes sense. Why wouldn't you
do that? That's where the sick patients are, sick people are. Just create these travel bans.
Here's the problem. First of all, we have some history here as well in terms of how well they've worked in the past. The answer is not very. If
you take a look at the map of West Africa and you think about that area, you think OK, implement travel bans, there are still many countries that
people --
QUEST: Right.
GUPTA: -- could go to by land and then travel out of there. So, are you going to institute travel bans for all those countries as well? They could
fly to another country and then fly to the United States, for example. How is that all going to work?
The problem is, if you do institute a travel ban, people will start to flee to these other places, and they will no longer be considered potentially
at-risk people, they won't be tracked, they won't be traced, and that's, frankly, how outbreaks get worse.
There's also this notion that -- I know humanitarian aid could potentially still get into West Africa if you told people they were not going to be
able to leave until the ban was lifted, but it would impact --
QUEST: Right.
GUPTA: -- aid. I guarantee you it would impact aid. I've traveled with these Doctors Without Borders groups. It would impact the way that they
can do their jobs. And it would almost be like, Richard, if someone was having a heart attack, and they had left arm pain, it would be giving a lot
of pain medications for the left arm pain and ignoring the heart attack.
QUEST: Got it.
GUPTA: How does that story end? This is the same thing here.
QUEST: Sanjay, thank you for your perspective tonight. Have a good weekend. Thank you, sir.
GUPTA: You've got it, sir. Anytime.
QUEST: Now, when we come back, Albania's been doing a lot of waiting. Its football team is waiting to hear what officials plan to do about a very
nasty brawl with Serbia at Tuesday's now infamous game. Tirana is waiting to join the EU. I will not keep the Albanian prime minister waiting. He's
next on QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: The Football associations of Serbia and Albania are now both facing consequences from the sport's governing body after a very nasty brawl
during the Euro 2016 qualifying match. You know the story.
Both sides abandoned play in a Group One game on Tuesday. It was over a flag stunt. UEFA says sanctions are likely after this fracas.
(BEGIN VIDEO CLIP)
MICHEL PLATINI, PRESIDENT, UEFA (through translator): We will most likely impose sanctions. We are waiting for the report from the referee, from the
delegates, the report from the security officials, and especially for this high-risk match. So, we are waiting, and then the disciplinary committee
will make a decision. It is independent, and it alone will make the decision.
(END VIDEO CLIP)
QUEST: Now, you remember, the fighting broke out when a mini-drone appeared over the pitch. It was dragging a flag with the politically-
sensitive words "Greater Albania" on it.
Serbia has accused the prime minister's brother of flying the flag, as you'll hear now, because the prime minister of Albania is with me at the
moment. We welcome Prime Minister Edi Rama.
EDI RAMA, PRIME MINISTER OF ALBANIA: Thank you.
QUEST: Nice to see you, Mr. Prime Minister.
RAMA: Thank you.
QUEST: Let's just clear this up. Was it your brother who was responsible, paid for, delivered, in any way instigated the drone?
RAMA: No, it was not my brother, and it couldn't be my brother, or either of any from 45 Albanians being present in the stadium, because with
innocent supporters to the game, exactly to avoid any type of incident. And the drone, as you may see, came from outside of the stadium.
QUEST: Right.
RAMA: So, how possibly my brother could have been involved? But we know how it works with the propaganda of the Cold War and how it works with the
whole politics in the Balkans.
QUEST: Do you condemn what took place on Tuesday?
RAMA: It's very, very unfortunate and sad event. And it's even more unfortunate that what happens in the football stadium continued, then, in
the highest level of politics in Serbia. And this is something that is very sad. Because let me just --
(CROSSTALK)
QUEST: Well, I want to --
RAMA: -- bring your attention to the fact that 100 years ago in the Balkans --
QUEST: I really don't want to get into 100 years, because I want to talk - -
RAMA: No, no, but it's first year in our history that we have peace and we have no borders contest, and we have a fantastic chance to go forward. And
now, we are all -- like trapped in a football game. It's not possible.
QUEST: You wanted to go to Serbia as the first visit for many years. Are you still going to go?
RAMA: It's the first meeting among two prime ministers in 68 years. So, just to give an idea of how much problems and how much mistrust we have had
since many years. And I think that politics should not be driven by football games, and I'm convinced that it's time to turn the page and to
move forward and to not be trapped in this kind of old politics that has kept us hostage so long time.
QUEST: If we look -- I'll take that as you're prepared to go.
RAMA: Sure.
QUEST: You are prepared to go, just to be clear, sir that you are prepared to go?
RAMA: Sure.
QUEST: Right. If they don't dis-invite you.
RAMA: It's up to them.
QUEST: It's up to them. But you're prepared to go if they say yes. Good.
RAMA: So far, we have agreed that we have to meet.
QUEST: When do you now -- I want to end on a really optimistic note, because obviously, you are now an -- an EU candidate. You've been
approved, you've had the stamp. You've now got to get on with these 12 areas of priority. But they're fundamental ones, they're not little ones.
They're rule of law, they're legislation, they're health, they're --
RAMA: Yes, they are 5 and they are enough, don't make them 12 --
(LAUGHTER)
RAMA: -- because it becomes too much.
QUEST: But they're fundamentals.
RAMA: They are very fundamental, yes.
QUEST: When -- can you do it? And when do you -- when would you like to join?
RAMA: Of course we can do it, and of course we will do it. And we think that we are able to do all of it, but at the same time, we think that the
European Union should turn again from a Europe of fear to a Europe of hope. Because it was a Europe of hope, and it's turning into a Europe of fear.
And so, all this stuff about "enlargement fatigue" is not helping in a very particular moment for the world. So, Europe needs the Balkans more than
ever, and not only the Balkans need Europe.
QUEST: And in a word, because we're out of time, in a word, sir, you can live with a European Union which you're a member and, eventually, Serbia's
a member?
RAMA: We have no other way if we want to give to the next generation a better future than the past we have gone through, these 100 years of hatred
and bloodshed.
QUEST: Prime Minister, honor to have you on the program, sir. Thank you, as always.
RAMA: Thank you very much.
QUEST: Now, when we come back in our very busy program, you've heard from prime ministers, you've heard from knights of the realm, you're going to
hear from chief executives in a minute.
Carnival is taking no chances. The cruise giant has isolated a passenger onboard a ship over possible Ebola concerns. Carnival's chief exec, Arnold
Donald, will be with me in the C Suite after the break.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There is more "Quest Means Business" in a just moment. This is CNN and on this network the news always comes
first.
Nigeria's government's agreed to a deal to free the missing school girls kidnapped by Boko Haram. The girls were abducted from a boarding school in
April. Now the government says it expects to secure their release next week. CNN's Diana Magnay is with us from Johannesburg.
DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Hi, Richard. Well, it's more that the government says that they want to secure further details
about their release next week. I'd be very surprised if we saw the release of the girls next week, and indeed I'd be quite relieved if we do --
surprised if we do see their release. You see, we have heard nothing from Boko Haram's site about these supposed negotiations. And also the timing
seems quite peculiar. There will be a huge rally in Abudja tomorrow where President Goodluck Johnathan is going to -- expected to announce his bid to
run for reelection next February. And of course releasing the girls, securing the girls would be a massive boost to that campaign, probably in
the form of a prisoner swap where Boko Haram operatives would be released back to further wage that insurgency in the northeast of the country,
Richard.
QUEST: Diana Magnay with more on that in the hours ahead. Diana's in Johannesburg. The other news stories -- the total number of confirmed
Ebola cases in West Africa, Spain and the United States is now past 9,200. New figures from the World Health Organization show there have been more
than 4,500 deaths from the virus, 239 of which were healthcare workers.
Hong Kong police have arrested 26 people after pro-democracy protestors clashed with police early on Saturday. Around 9,000 people are said to be
taking part in the protests. Hong Kong hospital authorities say at least 240 people had been injured in pro-democracy protests in the past 24 hours.
Four men have appeared before a London court on Friday on charges of intending to commit acts of terror. Land (ph) (inaudible) charge issued by
Scotland Yard. The four are accused of taking an oath of allegiance to the militant group ISIS.
And Russia has agreed to renew gas supplies to Ukraine for the winter. The Russian President Vladimir Putin said on Friday they'd negotiated on all
the parameters of the deal since Ukrainian counterpart Petro Poroshenko said some issues remain.
A Carnival cruise ship is returning to Texas, and onboard is a passenger who may have been exposed to samples of body fluid taken from an Ebola
victim. Now, the woman passenger is a lab worker, currently who's in \voluntary quarantine onboard the Carnival Magic. Health officials warn
she may have handled specimens taken from Thomas Duncan, the Liberian patient who died earlier this month. Carnival has issued this statement --
"The individual has no symptoms and has been isolated in an extreme abundance of caution. We are in close contact with the CDC and at this
time it has been determined that the appropriate course of action is simply to keep the guest in isolation on board."
Carnival is also noting that none of its ships go to the Ebola-affected areas of the world. Well, on this program you're going to hear from the
people who matter. And that in this case is the Carnival Chief Excec Arnold Donald who joins me in the C-Suite. Good evening, sir.
ARNOLD DONALD, CEO & PRESIDENT, CARNIVAL CORPORATION: Good to see you, Richard. Good, how are you?
QUEST: We can go through this at a fair click. Your understanding of the situation tonight of the passenger who requested to be let off in Belize,
the Belizean government wouldn't allow it. He must have been pretty hacked off that you got to bring her.
DONALD: Well, you know we respect every country and we respect all appropriate organizations. In this particular case, as you mentioned, the
woman is a lab supervisor in a lab that handled some specimens. She has no symptoms whatsoever, and in terms of why she wanted to leave is because
there's been a change in the protocol for CDC for monitoring --
QUEST: Right.
DONALD: -- people who have had some possibility of it.
QUEST: So, she will stay onboard the ship until it gets back to Texas?
DONALD: She'll stay onboard the ship, she's in isolation, she's 19 days past the point of any possible initial contact, and she never had any
direct contact with the patient.
QUEST: Will you talk more generally on this issue, because you board thousands -- tens of thousands of passengers a week? You must be very
concerned about how you now deal with what is a growing public health -- almost hysteria.
DONALD: Well, you know, we have a lot of practices in place. You know, that we've had incidents in the past -- SARs, H1N1, etc. So we have a lot
of experience in the cruise industry -- not just our brand Carnival and other eight brands, but the industry has a lot of experience in dealing
with people -- even with influenza. You know, the norovirus that people talk so often about, which is a total myth in terms of it being a cruise
type of virus. Go ahead.
QUEST: But you -- are you elevating all of this now?
DONALD: No what we've done, there are protocols established for everything, and the CDC has protocols in place. We're following those
protocols as they expand the protocols -- we follow those. But we have many procedures in place to first help guests self-identify, we screen, we
track travel records, etc.
QUEST: Let's talk about the industry and your own ships. It's growing. It's growing very fast --
DONALD: Yes.
QUEST: -- particularly in China, and I wonder, you know, this cruising industry just keeps growing, but you keep getting knocked from one side to
the other -- by environment issues, health issues. But still it grows.
DONALD: You know, we get some media attention, we get other attention, but the bottom line is the cruise industry is vibrant, it's growing. We just
celebrated a third quarter where we exceed our guidance for the quarter. We elevated our guidance for the full year, we put the quarter by 15
percent, we elevated the guidance for the full year, the mid-point -- even more than that. We've had more people in the Caribbean sail this year. We
had 20 percent more guests (inaudible) --
QUEST: But that's not your growth area -- forgive me -- that's not your growth area.
DONALD: Well, you know the world is our growth area, but China. China -- I just returned from China. And I was at the CCYA Conference -- Y-I-A
Conference -- in Tianjin, and China, it's going to be the world's largest cruise market at some point in the future. Today, we're the largest in
China. We have four ships. The fourth ship -- the Costa Serena will be sailing on next year from China. We even have a world cruise that's home
ported from China sourcing Chinese guests. Eighty-six days on a ship, when usually they cruise for four or five days.
QUEST: Which fundamentally brings us back as we finish to this point that -- as a global company --
DONALD: Yes.
QUEST: -- with local cultures, --
DONALD: Yes.
QUEST: -- with local cultures --
DONALD: Yes.
QUEST: -- and different issues -- political, geopolitical, healthcare, all these issues that you have to deal with -- you can't take any chances on
something like this. This --
DONALD: Oh, yes.
QUEST: -- this has to be first. I mean this Ebola crisis, for example, has to be on your desk.
DONALD: First and foremost, health and safety -- for our guests and for our crew is always paramount. This is another example of it, but it's
always paramount. So we have many protocols in place, and we're very well- prepared for these types of things. QUEST: And you as the CEO are personally now watching this?
DONALD: Oh, absolutely. I've had several conversations with our team and I've had conversations with various government officials as well. So,
absolutely, we pay close attention to it, but, you know, I want to emphasize that this, while exceptional for Ebola, this is normal practice
in the cruise industry. We manage these things -- that's what we do.
QUEST: A growing industry which you need to be --.
DONALD: We will (ph).
QUEST: Thank you very much.
DONALD: Yes, thank you very much.
QUEST: Good to see you as always. Thank you very much indeed.
DONALD: (Inaudible), Richard, thank you.
QUEST: Now, the weather forecast where you are. Mistress Harrison is at the World Weather Center for us this evening. Good evening, Ma'am.
JENNY HARRISON, CNN INTERNATIONAL METEOROLOGIST: Evening to you, Richard. Yes, you know, the place to watch I'm afraid over the next few hours is
Bermuda because they've got this hurricane of course. It is bearing down - - look at this. You can actually barely see now anything. But this is a live webcam coming from Bermuda, and let me tell you the last few hours --
actually just in the last 45 minutes -- it has rapidly deteriorated, because the winds are really picking up, the rain is really coming down.
Here are two locations -- this is a buoy just sort of at the northern end of it the island. Winds sustained at nearly 50 kilometers an hour coming
from the east and then we've got winds sustained here on Hamilton -- that's the capital of course -- and that -- those winds there you can see it's 27
kilometers an hour.
So, this is what has been happening the last few hours. And look at this - - we've had a wind gust been already reported again in Hamilton of 100 kilometers an hour. That is the way it is going to go. This is the latest
in terms of what is going on where the buoy is positioned just off the coast. It is a large storm system, that one, so this is the latest
satellite. That shows you where the eye is. And guess what? The strongest winds are going to be on the back side of this system, so if you
think those winds are strong now at just over 100 kilometers an hour, they are going to get stronger.
We've got winds sustained at 185 kilometers an hour, gusting 250, it is going to stay a strong storm as it literally passes over the island. And
then, it will indeed continue across the Northern Atlantic. That is obviously 72 hours away, but it will eventually potentially impact Northern
and Western sections of the U.K. Watch this again as it comes through. This is just showing you the forecast winds. That pink you can see, that
is going to be the strongest winds. We could well have gusts in about -- to about -- 160 kilometers an hour. The rain is already coming in of
course. It will get heavier as the storm moves through. It's moving fairly quickly, the storm, so that's a good thing when it comes to the
rain. And actually again, the heaviest rain -- there's Bermuda. The heaviest rain is actually off to the north and the west. As I say, we've
got some very strong winds heading across Bermuda.
Also, this next system, ahead of what could be the remnants of that, is heading across the northwest of Europe. Very unsettled across the north
and some very, very strong winds. This is the rain coming through. We've got some warnings in place as well for the rain and also because of the
winds. But just have a look at these winds across the northwest. We've got winds here gusting to around 80 kilometers an hour, so Richard, this
weekend be prepared. And not only because of the hurricane, but because of these strong winds across the north and the west of Europe.
QUEST: And I'm going to Kiev tonight, and thank you for the forecast into all of what's happening in Europe. Thank you, Jenny Harrison at the World
Weather Center. Now, this weekend's "Best of Quest" where the Bank of England governor is our "Reading for Leading" guest. Mark Carney is
currently enjoying a historical fiction.
(BEGIN VIDEOCLIP)
MARK CARNEY, GOVERNOR, BANK OF ENGLAND: I'm reading a novel called "The Orenda" by Joseph Boyden who is a Canadian maitee (ph) writer which is set
-- it's in the Huron Iroquois warriors in -- well, centuries ago. "From both shores of this wide river that the Huron call the Snake, Iroquois
dozens and dozens of them, pour into canoes hidden carefully in the tall grasses. Some are already in the water and closing in on a few of our
stragglers. I watch as their archers in front pull back on their bows and release."
QUEST: 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) hope
it's profitable.
(END QUEST SHOW)
(COMMERCIAL BREAK)
DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Welcome to "Marketplace Africa." I'm Diana Magnay. Cape Town, South Africa, one of Africa's most
beautiful cities and now a design capital of the world 2014. We'll explore what that means and look at how design has the potential to shape and
enhance the urban experience.
(BEGIN VIDEOCLIP)
ZIZI POSWA, IMISO CERAMICS: (Inaudible). This is the most exciting type and you get to play around and it sticks to you. (ph)
MAGNAY: Ceramicist Zizi Poswa and works in Cape Town. She's a founding partner of well-known local pottery collective, Imiso Ceramics. They've
been around for a while, creating distinctive pieces much sought-after by locals and visitors. Imiso sells from a store in the Old Biscuit Mill, a
creative retail hub worthy of this design-centric city.
POSWA: When we started, we kind of realized that we've made the best decision to be based in Woodstock specifically. And after a couple of
years, maybe two or three years, we kind of also realized that we have to make sure we make we maximize on, you know, whatever we do and had a lot of
customers coming from overseas to see our work and (inaudible).
MAGNAY: Cape Town is South Africa's oldest city and, arguably, it's most creative. Over the past few years, this city has been redesigning itself,
getting ready to shine. The design capital of the world is a title bestowed on a city deemed worthy by the International Council of Societies
of Industrial Design. It's all about promoting good design, using design to drive urban development and improve the interaction between people and
their environment. Past title holders include Finland's capital city Helsinki, Seoul, Korea and Torino in Italy.
TREVYN MCGOWAN, SOURCE DESIGN: Now our design industry at that coolest level is actually ready to step up and take the challenge of becoming a
cool market, but in a commercial environment.
MAGNAY: Trevyn McGowan is a big believer in good design. Together with her husband Julian, she started a company -- Source -- which did exactly
that. Source local designers nurtured them and exposed them to a global market through successful marketing strategies. Next came Savin Gillis
(ph), a stable of local talent creating design art, investment pieces, simulating the local industry. We meet her and her husband in Woodstock,
Cape Town, an area that's seen enormous change in the past few years.
SAVIN GILLIS (ph), ART DESIGNER (ph): Seventy to 80 percent of the designers are based in Cape Town, and almost all of them are based in
Woodstock.
MAGNAY: The regeneration of this part of town is one of the reasons that make Cape Town worthy as a design capital title. Once a run-down
industrial slum, now definitely a hot address for young urbanites. This turnaround was largely brought about by the visionary repurposing of
abandoned factories, creating exciting, desirable spaces. The year is almost over. How has the experience impacted this beautiful city?
GILLIS (ph): I think this is far more intrinsic and deeper than anybody anticipated, and it's only going to be in years to come that we really see
the critical impact that world design capitalists had on Cape Town. Had a lot of the projects/people pulling themselves together, people outside of
the design industry say, 'Well, what is design?' People examining and these projects that are emerging -- it's all very well to kind of want the
proof right here and right now. But for a young industry, we really are doing the best we can, and the legacy is going to be in what is left behind
in this year, and I think it's far deeper and more meaningful than people are thinking at the moment.
MAGNAY: Giving Africa another opportunity to shine.
MARK TOTOYI, SALES AND MARKETING, IMISO CERAMICS: We've managed to sort of incorporate many things of African -- or rather think that are African
within our art pieces like the Andelier (ph) would have a scarified collection which is inspired by the ancient tradition of body
scarifications. It is incorporated that with very minimal detail into his artworks. It's got the Africasso which is a Picasso-inspired collection
which is a fusion between African art and Picasso's work. So, it's -- those collections -- kind of say South Africa and Africa without having to
make a lot of (LAUGHTER) African Seuras (ph) and things of that nature, yes.
POSWA: We're giving it a finishing touch now to make it very unique.
MAGNAY: In two years, the honor moves East to Taipei, giving another city the opportunity to take a look at its urban potential and transform itself
with an eye firmly fixed on good design.
(END VIDEOCLIP)
MAGNAY: In keeping with the innovative reputation of their city, after the break we'll be speaking to a Cape Town-based company which is one of the
first on the continent to realize the potential of crowdfunding.
(COMMERCIAL BREAK)
MAGNAY: Welcome back. Thundafund is a young company making a difference in the online marketplace. Its aim is to help entrepreneurs realize their
dreams through crowd sourcing -- getting the interested people -- the crowd -- to find projects.
(BEGIN VIDEOCLIP)
MAGNAY: On this week's "Face Time," we meet two of the core team members - - social entrepreneur Patrick Schofield and technology expert Lunda Wright.
PATRICK SCHOFIELD, CO-FOUNDER, THUNDAFUND: When we first started talking about crowdfunding almost two years ago in South Africa, practically no one
even knew what it meant. You know, it was really something that was big and happening in the States and Europe. Africa -- just -- it was unknown.
When we first got going, we were literally looking to test to say is it even possible here?
LUNDA WRIGHT, COFOUNDER, THUNDAFUND: The starting point for us has been first is just to prove (LAUGHTER) that the thing can work, so we've gone
beyond that. Now it's more a case of, you know, creating the right kind of partnerships and, you know, with universe entities like, you know,
throughout the continent and raise minds to get them to say, say look, you know here's the model. This is how it works and then how you can make it
work and these are the various items that you all -- that we connect to this. This is a banking piece, you know (LAUGHTER), the marketing piece.
You know, then there's like, you know, getting to help people think about how they're going to conceptualize the project and what kind of rewards are
people going to get out of the project.
SCHOFIELD: Somebody actually came to us and said they want to raise $3 billion rands through crowdfunding for a wind farm. And we just said to
them, 'Guys, you need serious, you know, capital-intensive investors for that. You know, be it a venture capitalist or actually government funds.
That's not crowdfunding. And then someone else will come and say they would like to crowdfund for -- to get a new set of teeth. That doesn't
work in Thundafund either. What our whole model is both to (inaudible) creativity and innovation. Because that's the way we believe -- that is
going to be the major driver in terms of new enterprise in Africa.
WRIGHT: We've seen traffic coming from everywhere in Africa. Even a paymenter (ph) came in from Uganda as an example, you know. People
actually identifying with -- hey, you know -- this project is actually quite meaningful. I like it, I like the rewards I'm going to get out of it
and people saying, 'Here you go, I want to support it.' So, we've proved to ourselves and, you know, to project creators that the crowd is there --
the people are hungry. (LAUGHTER).
SCHOFIELD: The Thundafund is about supporting people in Africa by people in Africa. So often we look and say well what can Europe or what can the
States do for Africa. No. There's so much we can do for ourselves here, and you see that again, especially amongst the youth where they're saying,
'You know what, here's a 100 bucks, here's 500 bucks, because we believe in this project and it's an African project.' So, can it happen? It's
happening. We're doing it. Now our next step is how do we take it across Africa? And that's our strategy over the next two years is to grow from
where we are in South Africa, cross nationally and then across Southern Africa into the rest of Africa.
There's two key elements that we look at -- one, is the payment systems. They're actually the key in Africa, and the payment systems in Africa are
very fragmented. So one of our strategies is to go into each individual country and set up -- and set up -- bases in each country that we want to
work with. We see that as essential. This is about Africa, it's not about working remotely from somewhere in another continent. Secondly is, mobile.
Mobile is the primary phone access for the majority of people in Africa and will grow. Admittedly the smartphone markets is not as big -- even near as
big as in the States and Europe, but it is the biggest growth sector in the market. It's going to change the world, and specifically in Africa as you
see more and more people going smartphones/linking smartphones with mobile payment systems.
WRIGHT: The web presence (ph) is critical, and we'll have ongoing debates about, you know, how we should tackle the mobile side of things.
(LAUGHTER). That's big. Another big dependency we have is around, like just the banking systems throughout Africa. A lot of the systems -- the
regime works such that it -- there are a lot of inhibitors. And constantly trying to find a way through to, you know, to, you know, improve the
experience for a lot of the donors. We found partnerships have been working very well for us. You know, when -- when you have an institution
that says, 'Look, you know, we really buy into this idea about actually, you know, getting people to, you know, self-empower themselves, and we will
partner with you. Let me give you the kind -- my kind -- of profile, my kind of entrance into general market.'
SCHOFIELD: Yes, so many fantastic ideas coming out of Africa right now. So many people -- there's young, excited and vibrant people with really
cool minds and ideas coming through. They're the guys that need to be supported. And crowdfunding can do that.
(END VIDEOCLIP)
MAGNAY: That's it for "Marketplace Africa." Thank you so much for watching. You can catch any of our shows online at
cnn.com/marketplaceafrica. I'm Diana Magnay, see you next time.
END
