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Quest Means Business
Obama Calls for Net Neutrality; More Record Highs on Wall Street; Bank of Russia to Let Ruble Float; Russian Economy; Mexico's President Under Pressure; Cutting Off Terrorists' Funds; Illy Set for International Expansion
Aired November 10, 2014 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(NEW YORK STOCK EXCHANGE CLOSING BELL)
MAGGIE LAKE, HOST: US stocks close at fresh record highs. It's Monday, November the 10th.
Cyber warfare of a different kind. This time, President Obama takes on the cable company.
Float on. Russia's central bank let's the ruble float freely.
And the million-dollar mansion putting more pressure on Mexico's president.
I'm Maggie Lake, and this is QUEST MEANS BUSINESS.
Good evening. President Obama is putting his foot down. He says a free and open Internet is essential to the US economy, and the rules
governing Internet service providers have to ensure that it stays that way. That's putting him at odds with the cable and broadband industry.
Big service providers don't want net neutrality, or equal access for all. They want to offer some customers faster delivery of their content
for a fee. Now, shares of US cable companies slipped after the president's statement was released. You can see losses pretty much across the board.
Comcast, Time Warner Cable, Charter Cablevision, all of them, the Federal Communications Commission had voiced support for rules that would
allow so-called "fast lanes." And investors were responding to that. This is a reversal, though. Mr. Obama is urging FCC chief Tom Wheeler to change
his mind.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This set of principles, the idea of net neutrality, has unleashed the power of the Internet and
given innovators the chance to thrive. Abandoning these principles would threaten to end the Internet as we know it. That's why I'm laying out a
plan to keep the Internet free and open.
(END VIDEO CLIP)
LAKE: President Obama says he wants the rules on Internet access to be more like the rules governing essential utilities, like the supply of
water, or electricity. Three key issues he wants to address.
Throttling. The president says cable companies shouldn't make it harder to access certain kinds of content, like streaming videos.
Blockages. Mr. Obama argues that legal websites should not be blocked by cable companies for commercial reasons.
And finally, no Internet "fast lanes." That means no preferential treatment for customers who pay extra fees.
Our senior media correspondent, Brian Stelter, joins me now. Brian, I think this took a lot of people by surprise based on what we saw in the
stock reaction.
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Yes.
LAKE: How much weight does Obama hold on this issue?
STELTER: He's now going to his Federal Communications Commission and saying take this up, vote the way I believe you should. It is a commission
of five people, three Democrats, two Republicans. Obama appointed the chairman of the FCC, a Democrat, Tom Wheeler.
But Tom Wheeler in the past said he was probably in favor of these fast lanes. He was not supporting Title II classification, which would
make the broadband Internet more like a utility, more like the phone companies. So, in a sense, President Obama is challenging his own chairman
to change his mind.
LAKE: Right. And that's heavy influence, although they try to remain independent. These cable and broadband companies, though, they lobby, they
spend a lot of money in Washington. This is a huge issue for them.
STELTER: Absolutely. And Comcast and the others have come out very much opposed -- opposing the president today. Comcast said, "This is a
radical reversal of consistent contrary precedent to be taken up by the Congress." Comcast and others have been encouraging a much-less
restrictive type of regulation of broadband Internet.
But we are talking, as you said, about a utility. The Internet is like air, it is like water at this point, and it's only become more like
that in the future. So whether it should be controlled almost exclusively by private companies, whether the government should have more of a hand in
it, is a debate worth having.
(CROSSTALK)
LAKE: Yes, it is worth having.
STELTER: And the president has put it out there now on the table. By the way, he has supported net neutrality in that broad sense for years.
But only today --
(CROSSTALK)
LAKE: But he hasn't been so specific about it.
STELTER: Yes, only today, to hear him say classify it as Title II, treat it like a land line phone, that's a huge statement.
LAKE: It is. It's interesting -- you would think that this would be such a victory in that the people who are for net neutrality would be
really embracing this vote of confidence from the president. How are they responding to it, because it's quite a disperse group, when you're looking
on the other side.
STELTER: Some are supportive, some are not. Essentially, the president is saying keep your hands off the Internet while saying the
government should have their hands more involved. This is an easy thing for Republicans in particular to politicize. We saw Ted Cruz come out and
say this is like taking the -- giving Obamacare to the Internet. That is not an accurate thing to say.
LAKE: Yes.
STELTER: It is very misleading to say it. But you can see how quickly the issue is becoming polarized. More importantly, forget Ted Cruz
for a moment, Mitch McConnell also came out, called this a "radical idea, a terrible idea," were his words.
So, it's one of the first fights, actually, setting up between the Democrats and the Republicans since the midterms. Who would've thought
they'd be fighting over the Internet?
LAKE: It's true. And it's interesting to point out because Obama has really come under -- and the Obama administration increasingly seen as
anti-business, whether they intend that to be the case or not and whether the record really reflects that or not --
STELTER: Right.
LAKE: -- this is something that Republicans and their opponents are going to try to grab --
STELTER: Right.
LAKE: -- and get money, campaign money as well. We've seen a lot of businesses sort of shifting when they usually try to do a little bit for
both and hedge their bets. They've really been shifting in favor of the Republicans.
STELTER: Some folks are thinking today that the president is just trying appease his donors. Some of his liberal donors who've wanted to see
this action taken for years.
LAKE: Right.
STELTER: One of the easiest bets to place on net neutrality is that nothing's going to happen, that this is going to be fought over for years
to come. Whatever happens, it's going to be litigated in the courts.
LAKE: Sure.
STELTER: Companies like Comcast and Vernon have indicated that they would possibly sue if the government does take the action the president
wants to have taken. But we have seen that Tom Wheeler, the chairman, previously said he want something to happen on this by the end of the year.
LAKE: And it's interesting --
(CROSSTALK)
STELTER: That may slide to early next year, but something's going to happen.
LAKE: And the debate about who controls a utility is going to rage on as well, because not a lot of people are comfortable with the government as
a steward of the Internet, given everything that's happened in the post- Snowmen world.
STELTER: Right.
LAKE: So, it's a debate on many levels that we're going to be having to contend with.
STELTER: It sure is. But like I said, it's one worth having. The Internet is air, it is water, now. We have to figure out --
(CROSSTALK)
LAKE: That's right.
STELTER: -- how it's going to be regulated.
LAKE: And it affects everyone, even though it can be a complex topic, that sound, net neutrality. Brian, thank you so much for that.
STELTER: Thanks.
LAKE: Brian Stelter for us.
Well, more record highs on Wall Street. The Dow and the S&P 500 closed at an all-time high. Cable companies, as we mentioned, did miss out
on the party, though.
Russia's central bank, meanwhile, has abandoned its long-held policy of trying to shore up the value of the ruble. The Bank of Russia says it
will let the ruble exchange rate be set by the forex market. It comes after weeks of the ruble declining against other currencies.
Russian president Vladimir Putin discussed the state of the ruble with the International Monetary Fund chief Christine Laggard in Beijing. Mr.
Putin says the sharp swings in its value are due to market speculation. CNN's senior international correspondent Matthew Chance reports for us from
Moscow tonight.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: With low oil prices and Western economic sanctions having a massive impact on the
Russian ruble, the country's central bank has now decided it will no longer blow through billions of dollars trying to support the currency.
Instead, the bank says the ruble will now essentially float freely, allowing the market to decide its value. It's a move the bank had been
planning to make next year, but which appears to have been brought forward because of the exceptional volatility in the currency. The ruble's lost
more than 30 percent against the dollar this year.
The central bank spending $30 billion trying to support it last month alone. President Putin has voiced his support for the new policy.
Speaking at the APEC summit in China, he said it hoped it will help stabilize the ruble.
VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): We are not planning to limit capital movement. Today, we witnessed speculative
exchange rate jumps, but I believe it will stop soon. I mean, what the central bank does as a reply to speculators' actions.
CHANCE: Well, that's the hope. But will it work? Economists saying it's still a bit early to tell, but in general, the outlook for the Russian
economy is not looking good. The central bank forecasting zero growth for Russia next year. Low oil prices and a worsening standoff with the West
possibly pulling that ruble even further down.
Matthew Chance, CNN, Moscow.
(END VIDEOTAPE)
LAKE: As Matthew mentioned, the weak ruble is far from the only problem facing Russia. Growth is expected to stagnate because of Western
sanctions, and the central bank says those will likely to continue for another three years. And inflation is expected to climb to more than 8
percent this year. That is way above the central bank's target.
Vladimir Putin today denied that Moscow needs to restrict the movement of capital out of Russia, even though the central bank has warned more
money is due to flow out than expected.
Joining me now is Ruchir Sharma, the head of emerging markets at Morgan Stanley, and the author of the book "Breakout Nations." So nice to
have you --
RUCHIR SHARMA, AUTHOR, "BREAKOUT NATIONS": Very nice.
LAKE: -- in the studio this evening. Thank you for being with us.
SHARMA: Sure.
LAKE: I just want to pick up on something that Matthew mentioned and we heard from Putin there. He said he hoped the central bank actions would
normalize the currency market and punish speculators. Will it do either of those things?
SHARMA: Well, it seems to me like it had some effect in terms of stabilizing the ruble, but you've seen it in the long-term perspective
really, that the Russian currency has fallen a lot, or it appears to have fallen a lot, but it started out being one of the most expensive currencies
in the world. It was egregiously valued.
And now, what the currency is doing is adjusting and coming back to reality in some way. And of course the problems of Russia are sort of
exacerbating the fall of the ruble. But this really is a long-due adjustment that the currency is having.
Because if you went to Moscow, you would be able to sense it, that this had become one of the most expensive places in the world a couple of
years ago.
LAKE: So, long overdue. What about the capital flight? Do you expect that to intensify? And how bad could it get? No country wants to
see an absolute stampede out.
SHARMA: Yes, I think it'll break -- Russia has two problems. One is in terms of capital flight, and it's always a negative sign when the locals
are taking money out of the country. We have this popular image that the currency crises are caused by foreign speculators who go into a country and
then get out very quickly.
But often, the people who really take the money out first, and that tells you that something is wrong with the country, are the local people.
The large businessmen and --
LAKE: Who can afford to.
SHARMA: Exactly. Who can afford to, who have some inside knowledge about how rotten the system is, and they take the money out. So, Russian
business people have been taking money out of Russia, now, for really many quarters. And that piece, I think, may accelerate only in the quarters
ahead.
But there's a second issue for Russia, which I think is sort of under appreciated. Some colleagues of mine were there, in fact, in Moscow a
couple of weeks ago, and they came back a bit concerned. Because they said that out there, the widespread belief that the price of oil is falling, but
this is all temporary.
So, most people there are still working with the assumption the price of oil will come back to $100 a barrel or so. But, if the price of oil
stays at $80 a barrel or falls even further from here, I think the Russian ruble will have a very serious problem, because very few people are
expecting that to happen, in terms of the price of oil remaining at these levels.
LAKE: We've been talking about what's happening within Russia and a quite dire forecast there. Russia is so important to the continent,
incredibly important to a lot of the emerging economies that border it.
I just want to have you sit and listen to something. We had -- I had a discussion earlier today, Europe's Bank for Reconstruction and
Development froze all Russian investments over the summer. Earlier, I asked the bank's chief financial officer to explain the impact of a
slowdown in Russia's economy, what that would have on the surrounding region. Have a listen.
(BEGIN VIDEO CLIP)
ANDRAS SIMOR, VICE PRESIDENT CFO, EBRD: What happens in Russia has a major impact in all the countries, all the neighboring countries, and
especially the countries in Central Asia, not just in terms of trade, but also in terms of investment and in terms of remittances as well.
So, it has a very large impact. But so far, we haven't seen dramatic worsening of the situation, an economic situation in Russia. There has
been some slowdown. People start talking about a slight recession going to next year, but we'll have to see.
(END VIDEO CLIP)
LAKE: So far no dramatic impact. Is that going to continue to be the case?
SHARMA: Well, I have a slightly different view on this, which is that my view really is that Russia's economy is not that significant to have a
widespread impact on other emerging markets.
LAKE: Why is that? Because that's the general consensus.
SHARMA: I know, but Russia's size is just under $2 trillion, and it's not very interlinked, because if you look at how Russia trades with other
countries, it's mainly through commodities. Outside of commodities, Russia's trade linkages are quite weak.
Now, of course, there's some geopolitical tension, then the repercussions of that will be very wide. But from a pure economic
perspective, it's not. In fact, what Russia is suffering from today, ironically, is this slowdown in China that was really part of Russia's boom
last decade, but then they got this massive super cycle in commodity prices.
But now, with commodity prices falling so sharply, that's really what's hurting Russia. So, in some ways, what happens in China affects
Russia more, and the effect of Russia on the rest of the emerging world is not that significant in pure economic terms.
LAKE: Which is important for investors. Now, Ruchir, we are out of time, but very quickly, do you expect these economic problems to change
policy in Moscow?
SHARMA: I don't think so, because I feel that the mindset has turned very inward and very defensive. So unlike -- unless there's an outside
crisis, I don't think it's going to happen. So far, what we're seeing in Russia is this sort of slow grind, where the economy is sort of in a
stagflation kind of scenario.
But you really need some sort of an outside crisis to get policy reaction, because that's the only time when policymakers really wake up and
do something significant. Until then, it's the sort of slow bleed, which is likely to continue.
LAKE: Which, by the way, is what we've heard from Russian businessmen there as well. Ruchir, it's so great to see you. Thank you so much for
your insight.
SHARMA: Sure.
LAKE: Fascinating stuff.
Well, up next on QUEST MEANS BUSINESS, why the president of Mexico looks so tense. He's accused of accepting favors from powerful friends as
outrage grows over the disappearance of more than 40 students.
(COMMERCIAL BREAK)
LAKE: The president of Mexico is under more pressure following accusations he is benefiting from the generosity of a company that has won
government contracts. President Enrique Pena Nieto is also seeing growing outrage over the apparent killings of 43 university students. At the
weekend, protesters set cars on fire and attacked government buildings.
Now, a media report says Mr. Nieto's personal residence was built for him and his wife at the expense of an entrepreneur who was given a
government contract. Although that lucrative contract has been abruptly canceled. Our Rafael Romo joins us live from Mexico's Guerrero state.
And Rafael, this sequence of events, especially the corruption thing coming for a president who has painted himself as a reformer.
RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: Yes, it's definitely a big headache for the president. He was elected a couple of
years ago, and even though he came from the PRI, a government that had a bad reputation here in Mexico, the promises that he made was that he was
part of the new wing of the PRI, that he was going to do away with corruption, reform the police.
And now we have not only this scandal that you mentioned, but also the fact that there are 43 students missing here in the state of Guerrero where
I am, and there seems to be no solution to the problem.
The government gave a press conference on Friday, saying what we believe that happened to these students is that they were executed by a
criminal gang.
But the parents of the missing and many people here in Guerrero are not believing that, and it's quickly becoming one major headache for the
president as he is traveling in Asia to meet with fellow presidents from the region and across the world, Maggie.
LAKE: Rafael, I know there was criticism about the fact that he left the country during this type of crisis. What is it that the protesters
want? What are they unsatisfied with, in terms of the investigation?
ROMO: Well, to the first point first, there was a lot of people, even his advisors, were advising him not to leave the country at this very
moment because of the situation here, that that would send a bad signal, a bad message to the country that he didn't care deeply enough about what was
happening here in Guerrero state.
But then, he left, and people now are waiting for answers, and the answers that they want is to know exactly what happened to the 43 missing.
What the government has said, again, is that they found human remains that maybe -- there's no conclusive evidence -- that maybe of the 43 who went
missing back in late September.
But the parents say they simply are not going to believe the government's story until they can give them scientific, conclusive proof
that it is, indeed, the 43 missing, Maggie.
LAKE: Such a disturbing story. Rafael, thank you so much for that.
Now, the White House says it is asking Congress to approve spending another $5.5 billion fighting ISIS in Iraq and Syria. At the same time,
President Obama has stressed the need to cut off funding to ISIS.
Speaking at the United Nations in September, he spoke of the hypocrisy of people who made their money through the global economy and used that
wealth to support groups who want to tear it down. Bahrain today hosted an international conference on this very issue. John Defterios reports.
(BEGIN VIDEOTAPE)
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR (voice-over): As airstrikes continue to rain down on ISIS strongholds, 30 countries,
representing half the coalition in the fight against the group, explored better ways to choke off terror financing.
The struggle to date, officials admit, has been keeping pace with the organization's multi-pronged financial strategy.
SHEIKH KHALID BIN AHMED AL KHALIFA: It is a much different challenge than what we've been seeing before in the region. It's not a different
enemy. It's the same enemy that we've seen everywhere, but they have gained more experience.
DEFTERIOS: ISIS quickly built out its base in eastern Syria and western Iraq by initially tapping wealthy regional Sunni sympathizers.
AL KHALIFA: They have managed to get into new areas and new fields of taking control of territories, taking control of oil fields, establishing
rockets, ransoms everywhere.
DEFTERIOS: Intense airstrikes have curbed the group's oil output. US officials say it is less than a third of the level back in June, when it
was earning nearly $3 million a day.
DEFTERIOS (on camera): This is not a new effort. In fact, legislation dates back since the 9/11 attacks. Experts within the round
table suggest it was pressure from the United States and the international organizations to get the Middle Eastern states to push ahead with laws.
Now they suggest there's a gap between what's been put on the books and what's actually being enforced.
DEFTERIOS (voice-over): UN Security Council resolutions have been expanded to force member states to step up international cooperation.
CHADY EL KHOURY, IMF SENIOR COUNSEL: Once you have that political commitments, the (inaudible), and more important is that these
institutions, for lack of capability and for lack of capacity experience, expertise, cannot put forward and use these tools efficiently.
DEFTERIOS: By the region's own measurement, two Middle East countries remain on the black list for non-cooperation: Iran and Algeria. On the
gray list, meaning improvements are still needed: Iraq, Syria, Yemen, and Kuwait. Turkey came off the list in October, and Qatar back in 2010.
Washington has not been shy naming countries. The US head of the financial terrorism effort, David Cohen, recently singled out Qatar and
Kuwait for not stepping up international cooperation.
A sense of urgency emerged in the language of this meeting's final declaration, but it leaves many wondering if the effort is too little, too
late.
John Defterios, CNN, Bahrain.
(END VIDEOTAPE)
LAKE: The chief executive of Illy tells me about his plans for international growth next.
(COMMERCIAL BREAK)
LAKE: The US economy is in line for a caffeine boost from Europe. The Italian espresso chain Illy is about to open even more stores on this
side of the Atlantic. Andrea Illy, the chairman and chief executive of Illy Coffee joins me now in the C Suite. Thank you so much for being with
us.
So, you're expanding even more here in the States, opening up into new markets. But this is a pretty crowded field, between Starbucks and
McDonald's and K Cups, how are you going to make your brand stand out?
ANDREA ILLY, CHAIRMAN AND CEO, ILLY CAFE: Well, the company -- the brand is here since 35 years, so it's pretty much known in the hospitality,
in the homes. So, what we are trying to do now with these new cafes is also to open up the Italian al authentic experience.
(CROSSTALK)
LAKE: And what is that?
ILLY: Starting from San Francisco. Well --
LAKE: And how does that differ from what's out there?
ILLY: Yes, so --
LAKE: Explain that to us.
ILLY: Whatever you can see in this gourmet coffee, let's say, passion in the last decade or so has some Italian essence, because espresso,
cappuccino, the Italian sounding of the atmosphere and so on.
So, we believe that it's time, now, to try to offer the real thing to the consumer, at least in the niche of the market, and see which is the
reactions. So far, we open two Espressamente Illy cafes in San Francisco with good success. And this week, we are opening the third one.
And this goes along also with our sales online of the products to consume in homes. So, it creates a new business model for the development
of the brand.
LAKE: So, I think I know the answer to this based on what you just said, but when you enter these new markets, do you take into consideration
the local needs or the local taste, or is this really your brand introduced in its entirety --
ILLY: It's both --
LAKE: -- in this new -- yes?
ILLY: It's both.
LAKE: Any drive-through, something big in the US, drive-throughs?
ILLY: No, its -- well, they are blend, only one blend, because it has to be the best. The company has been founded following the idea to serve
the best coffee to the world. So, this is why we decided to have only one coffee, and it's a blend, because we -- by blending, we get more
complexity, more balance, and more consistency.
So, one unique blend. And this unique blend has been perfected in two roasting degrees, one lighter, one darker. But in as many preparations the
consumer wants.
So, the -- of course, the most important preparation for us is espresso. We have been the forerunner of the espresso by innovating the
espresso technology. The high-pressure espresso technology that everybody knows in the world now has been invented by my grandfather.
And now, we are in the process of bringing the next generation espresso with our capsule, the iperEspresso one, which is even more
flavorful and velvet. Right?
So this plan, but the preparation, the American consumer can choose between a range of recipes with latte, cappuccino, the American coffee,
like the filter or the drip coffee, and so on.
LAKE: The choice is important.
ILLY: So, this is the way we adapt, by preparation.
LAKE: I want to ask you, you're such an ambassador for Italy as a brand. What do you make of what's happening at home? There's some
frustration about the pace of reform, that not enough is happening, that Italy is one of the countries once again at risk for recession. As a
business person who operates there, what is your sense?
ILLY: Well, the complex situation is about Europe altogether, which is still kind of stuck in the middle of the long-term process of
unification. And in this, let's say, period, the weakest countries in terms of economy are suffering more because they are receiving the
constraints from Brussels, and this doesn't give them enough flexibility in order to react in accelerating the economy.
And as a consequence of this, also the reform pace is lowered, because of course if the economy does not do well, you increase the debt, increase
the deficit, you increase unemployment, and it becomes more and more difficult to create reforms. So, I would put the situation in the overall
European complexity, which is still under, let's say, development.
But with the new premier, Matteo Renzi, young, energetic, very courageous and strong in terms as a leader, he's doing a good job in
accelerating the reform agenda. And I think he's touching the right dots, connecting the right dots for the -- for accelerating.
LAKE: Well, we wish you the best of luck with those cafes. I get up far too early in the morning to indulge right now, but next time you come
back, we will share.
ILLY: Absolutely.
LAKE: Thank you so much for being with us.
ILLY: My pleasure, indeed. Thank you very much.
LAKE: Well, they are the hot new brand, outselling One Direction on Amazon. You may have heard of the, they go by name Pink Floyd. We'll hear
from David Gilmour on what could be their final studio album.
(COMMERCIAL BREAK)
LAKE: Welcome back, I'm Maggie Lake. These are the top news headlines we'll following this hour.
An Israeli soldier who was stabbed in Tel Aviv has died from his wounds. The Palestinian has been arrested in connection with the attack.
Similarly, there Israelis were stabbed near a West Bank settlements. One of the victims, a 24-year-old woman, has died. At least 47 people have
been killed in an attack at a school in Nigeria, dozens more were wounded. The suicide bomber was dressed as a student.
The Iraqi Ministry of Interior says the leader of the ISIS militant group was wounded in an airstrike. The U.S. is not confirming that claim.
Iraqi officials said Abu Bakr al-Baghdadi was injured on Saturday when planes from the U.S.-led coalition attacked a convoy on Mosul. The
Pentagon confirmed airstrikes but could not say for sure that al-Baghdadi was injured.
The people of Catalonia in North Eastern Spain have demonstrated they want independence. In the strongest show of support to date, more than 80
percent of the people who voted said yes to independence in a symbolic non- binding vote. The Spanish government says the ballot was unconstitutional. But Catalan leaders warned against any attempt to disrupt it.
Well, they don't have the dance moves of Taylor Swift or the sex appeal of One Direction, but Pink Floyd can still do one thing better than
anyone else - sell records. Their new album, "The Endless River," has now been preordered more times on Amazon U.K. than any album in history. CNN's
London correspondent Max Foster asked guitarist David Gilmour how they did it.
(BEGIN VIDEOCLIP)
MAX FOSTER, CNN INTERNATIONAL ANCHOR AND CNN'S ROYAL CORRESPONDENT: This is both the come back and a goodbye for Pink Floyd.
(SONG PLAYS)
FOSTER: This is the only track with lyrics on what they say is their last album. But this isn't entirely new music. It's mostly based on
tracks that were left off the "Division Bell" album in the 1990s.
DAVID GILMOUR, PINK FLOYD: But the best of everything there is a piece of old music, and we have added to it and subtracted from it when we
can. I did think for a little while about being purist about it - not adding to it, just doing the shaping, try to make the sound better. But I
thought, well, we wouldn't have done that back then.
FOSTER: The "Division Bell's" Tour, documented in the 1995 film "Pulse," was the biggest tours the world has ever seen -- packing out
stadiums across Europe and North America. With more than 250 million records sold, Pink Floyd is one of the biggest rock bands of all time. As
I understand it, you presold more albums than One Direction here at the U.K. at least.
GILMOUR: Yes.
FOSTER: You'll still actually be relevant - to a younger generation it seems as well. Because that was on Amazon.
GILMOUR: Well, maybe they're looking for something that they're not getting.
FOSTER: What do you think that is?
GILMOUR: Something that's not made quite so robotically.
FOSTER: Is that fair?
GILMOUR: I don't know. Don't know what I'd say (LAUGHTER).
FOSTER: Something like that.
GILMOUR: I think modern music to me - God, I'm going to sound like grumpy old man now - is it's very formulaic.
FOSTER: But almost as if music from bygone decades, which is the fundamental basis of this album, is almost more relevant to people now than
the stuff that's being produced or -
GILMOUR: My children, you know, who, you know, who are now in their late teens and in their 20s, all went through phases of thinking the
Beatles were the greatest thing on the planet and there are an awful lot of young people who are searching back through the older music for some sort
of slice of something real or more original.
FOSTER: It's a comeback but it's also a goodbye, isn't it? This will be your last -
GILMOUR: This will.
FOSTER: This is the end of Pink Floyd.
GILMOUR: This is the end of the Pink Floyd recording career, as they barely (ph) say to me.
FOSTER: Max Foster, CNN London.
(END VIDEOCLIP)
LAKE: Former Pink Floyd member is Roger Waters famously marked the fall of the Berlin Wall with a live performance of the band's album "The
Wall" in 1990. Much has changed since then, and I spoke about the transformation earlier with Andras Simor - he's the chief financial officer
for Europe's Bank for Reconstruction and Development. I asked what the 25- year milestone meant to him.
(BEGIN VIDEOCLIP)
ANDRAS SIMOR, EBRD VICE PRESIDENT AND CFO: For me personally, it's also very important because I'm not just looking at the numbers - how much
GDP convergence we have seen, but also having lived beyond the Iron Curtain, I can remember a few things that sounds very odd to people. If I
remembered that we had to wait for six years to get a telephone line before 1990 in Hungary where I lived or if I wanted to transfer money from my
account to somebody else who had an account in the same bank but a different branch, the fastest way at that time was to take the money out in
cash and get into a taxi and drive to this other branch. And compared to that, what we have achieved is rocket science. We are in a totally
different world. And that - and that, you know, people only feel if they have lived there during the 1980s and `70s.
LAKE: When you look now with the decades in retrospect to look back on, how did the falling of the wall shape the mandate of the EBRJ?
SIMOR: Well if you like the fall of the Wall actually created the mandate of the EBRD, and the mandate of the EBRD is to try and help the
transition of these economies into sustainable well-performing market economies. And that has been the mandate of the bank ever since. And
that's what we are trying to implement - in some years with more success, in some years with less success. But if we summarize the whole thing, and
if we avoid looking at just the frustrations that sometimes we have in a number of countries or the problems associated with the recent past, I
think all in all, we have to say that this has been a huge success over the 25-year horizon.
LAKE: And if you look back at all these years that have passed, what do you think has been the greatest success in the post-war Wall - after the
Wall has fallen? What would you say is the greatest success story?
SIMOR: I think the greatest success story - success story - is probably that the mentality in a number of countries have totally changed.
People live in a free world, they cannot anymore imagine going back to the closed circumstances they have lived in. My children cannot imagine their
life without possible being in the bulkheads. People expect a breadth of services of goods in the shops. You know, the expectations cannot be
changed anymore back to where they were. We live in an open world of information and that drives development - even if we have setbacks from
time to time.
(END VIDEOCLIP)
LAKE: Momentous events from history were also being recalled on the battlefield of Northern France today. Countries around the world are
getting ready to mark Armistice Day, also known as Veteran's Day 100 years after the First World War began. Each day in our series "War of
Invention," we will be looking at something that arose from the Great War - it helped shape our lives a century on. Today, something still fresh in
our minds - Daylight Savings Time. Jim Boulden explains the wartime connection.
(BEGIN VIDEOCLIP)
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: This was a war where every hour counted on the battlefield and on the home front. By 1916, an
old idea had resurfaced - one that was born in Britain near the home of time, the royal observatory at Greenwich.
LOUISE DEVOY, CURATOR, ROYAL OBSERVATORY, GREENWICH: -- the publication of a pamphlet called "The Wasted Daylight," and this was
composed by a very entrepreneurial builder called William Willett. He lived in Chislehurst which is about 15 kilometers south of Greenwich. And
Willett was a keen horse rider, and he used to go for early-morning rides in the local woods. And it was on one of these rides that he noticed that
all the blinds in the local houses were down - everyone seemed to be in bed, and as a very industrious and productive man, he was appalled at this
wasted time.
Male Narrator for WILLIAM WILLETT: Everyone appreciates the long, light evenings. Everyone laments their shrinkage as the days grow shorter
and nearly everyone has given utterance to a regret that the clear, bright light of early mornings during spring and summer months is so seldom seen
or used. Now, if some of the hours of wasted sunlight could be withdrawn from the beginning and added to the end of the day, how many advantages
would be gained by all?
BOULDEN: Willett died before he saw his idea put into action - to save coal for the war effort. But it was adopted at first by the Germans,
not the British. Postcards warned the population about the shift and why they owed it to their country not to forget. The British followed a few
weeks later and didn't miss a chance for a dig at the Germans. America came on board in 1918. As DST spread around the world, countries adopted
it, dumped it or never tried it. Still, the daylight debate rages every year. The arguments exist whether it helps or harms our health, and the
economy.
DEVOY: In terms of the health debate, that still goes on too. People suggest that with a lighter evening, people go out for a jog. Certainly
here in Greenwich Park, it's very popular, and then also people claim that it has tourist benefits. People stay out later, go out for a meal, go for
a drink outside. So it can have a real economic benefit.
BOULDEN: While the wartime wisdom of saving energy may no longer apply, for many of us, the long summer evenings still endure. The legacy
of a war where so much was lost to give us these freedoms. Jim Boulden, CNN London.
(END VIDEOCLIP)
LAKE: With just two months to go, Morocco says you can sanction us, you can ban us, but we're not hosting the Africa Cup of Nations. How fear
of Ebola has turned football into chaos, after the break.
(COMMERCIAL BREAK)
LAKE: With two months to go, football authorities do not yet know where Africa's biggest tournament will be held or if it will happen at all.
Morocco is refusing to go ahead with the Africa Cup of Nations it is supposed to be hosting the competition in January. But it says it should
be postponed for a year over fears that Ebola could spread as players and supporters cross borders. At least Africa's football chief's searching for
a last-minute alternative.
Now, Moroccan officials said the risk from Ebola were too high and that they appear willing to take potentially huge sanctions as a result.
CNN's Patrick Snell has more now. Patrick, one month to go - that is not a lot of time. What are they going to do?
PATRICK SNELL, SPORT ANCHOR AND CORRESPONDENT FOR CNN INTERNATIONAL: It really isn't. And just to absolutely stress, Maggie, Morocco is saying
they're still willing to host the tournament, they just want to delay it - potentially until June or July or possibly even through the early part of
2016. So they've been making back here - playing quite a cagey game I would say over the weekend, basically refusing to commit to the fact that,
yes, they are due to host this procedure for a really long time and slated for mid-January, it carries over into February as well. But this is the
concern that they have.
This is the concern that they're coming out with, saying that they cannot guarantee the safety of people coming in for the tournament. This
is a 60-nation event, up to around 5,000 people have lost their lives mainly in Africa due to the Ebola virus. And it's basically a concern over
people's health. But CAF, the Confederation of African Football, saying that Morocco is being alarmist, and the key date for everyone's diary is
Tuesday in Cairo when CAF will reveal its next hand.
But one other point I want to make with this, Maggie, is a little bit of a catch-22 situation for Morocco, because on December the 10th, that
nation will host the FIFA sanctioned Club World Cup - a prestigious cup event - club event - for some big names in World Football, including Mighty
Real, Madrid - the ten-time champions of Europe. So, Morocco's saying we're OK to host that one, their reason being that that only involves two
teams from Africa - namely Morocco and Algeria as opposed to the African Cup of Nations which is 16 teams, Maggie.
LAKE: All right. To be continued. Patrick, thank you so much. Too sexy for primetime? E-cigarettes are getting major exposure on British TV,
but there's criticism over how they are being marketed. I talked to a public action group about why they are so concerned. Find out what they
said, next.
(COMMERCIAL BREAK)
LAKE: For the first time ever, viewers of British TV will see someone using an e-cigarette in a vaping commercial. It's being allowed on the
small screen after the advertising watchdog had a rethink. But Action on Smoking and Health, or ASH, is concerned about the ad - that it is
sexualizing e-cigarettes. Earlier I spoke to Amanda Sandford from ASH which is mainly concerned about the harm form traditional cigarettes I
asked her to explain the problem with the commercial.
(BEGIN VIDEOCLIP)
AMANDA SANDFORD, ACTION ON SMOKING AND HEALTH: ASH in principle has no problem with advertising of electronic cigarettes. But an ad that is
due to be screened on British TV this evening, sexualizes and glamorizes the product to an extent which we think is totally unnecessary. It
features a woman whose very glamorous vaping in a - blowing the vapor into the air, which is really reminiscent to the bad old days of tobacco
advertising, and we're really concerned that it could make the product look appealing to non-smokers. So as people who are not actually intended
target market.
LAKE: Amanda, all advertising is supposed to make products look better. The food is supposed to look delicious, I mean, it's supposed to
sell things. What would an effective e-cig ad look like?
SANDFORD: Well, I think the point is that, yes, the companies want to sell the product - clearly. But there's no need to go as far as they have
gone in this particular case in terms of sexualizing it. What our research tells us is that smokers want the facts. They want to know whether the
products are safe and effective to use. Awareness is already very high in U.K. - over 90 percent of smokers are aware of them, over 50 percent have
tried them. But, you know, so there's no need to project these products in this sexualized way.
LAKE: So you think they should be more information-based. There's not a lot of information when it comes to the long-term effects of e-cigs.
SANDFORD: Well, that is true in terms of the long-term effects. But what we do know already is that the products, although they contain
nicotine, which of course is addictive, compared to smoking, they're far, far less hazardous. So there is quite a bit of information that the ads
could convey about, you know, why it's important that smokers quit smokers and what these products have to offer, a little bit about how to use them,
the different types that are available. You know, quite a bit of factual information could be conveyed. But in - certainly in - the ads that we've
seen that are due to be screened tonight, we're not impressed with them and I think there is a real danger that they could appeal to non-smokers
including, of course, children.
LAKE: They are airing quite late though, aren't they? So the chance of children being able to see them are probably pretty slim, no?
SANDFORD: Well, it depends. I mean, we have what we call the 9 p.m. watershed. After that time, advertisements which are aimed at adults
rather than children can be shown. But inevitably some children will see them, and they may well be replayed on YouTube or whatever.
LAKE: Lake.
SANDFORD: I mean, it's a possibility that the ad is just being deliberately provocative just to get this publicity. But we hope that
other companies will be little bit more responsible in the ways that they advertise their products.
(END VIDEOCLIP)
LAKE: Last week we were showing you some of the technology of the future and the people behind it at the Dublin Web Summit. Our Jim Boulden
and Laurie Segall help give us the round up now.
(BEGIN VIDEOCLIP)
BOULDEN: Well, the three-day Web Summit here in Dublin is now over and I'm joined by Laurie Segall of CNNMoney to talk about some of the more
interesting aspects of this Summit. Laurie, what's the most interesting thing you saw here?
LAURIE SEGALL, TECHNOLOGY CORRESPONDENT FOR CNNMONEY: You know, I got to say it was looking at Oculus Rift the new virtual reality goggles. You
put these on and it's honestly one of the most unbelievable experiences. You feel like you're in a completely different world. I -- you know, I
actually am afraid of heights. I almost had to take them off because it seemed so real, and you could see how cool and how interesting virtual
reality could be in the future. The fact that Facebook has bought Oculus - what could that mean for face virtual reality with your friends in the
future? It's pretty unbelievable.
BOULDEN: Now you've been on stage over a couple of days with some of the most interesting people -
SEGALL: Sure.
BOULDEN: -- in this space. One of them is Peter Thiel. He was talking artificial intelligence?
SEGALL: Sure, you know Elon Musk recently was freaked out on stage thinking about the implications. So when I was in front of Peter Thiel, I
wanted to say - I wanted to ask him about artificial intelligence and what he thinks about this in the future. And, you know, he said that it could
be very, very dangerous.
BOULDEN: Let's listen to some of that.
(BEGIN CLIP)
PETER THIEL, CO-FOUNDER, PAYPAL: I think the dangers are quite big. I still think they're further in the future than we think. People always
focus on the economic question - will they take your jobs? But, if you developed AI, it would be like extraterrestrials landing on this planet.
And the first question we'd ask if aliens land on this planet, it's not what does it mean for the economy? The first question would be a political
question - are the aliens friendly or unfriendly? And that's the same question I think you'd have to ask with AI.
(END CLIP)
SEGALL: You know, what's interesting from there - he said we're going to have to have ethics when it comes to artificial intelligence and how far
-
BOULDEN: Right.
SEGALL: -- its use should go.
BOULDEN: One of the other people you spoke to was Tony Fadell who used to be at Apple. And he talked about failure.
SEGALL: Yes, you know Tony's an interesting guy because he's behind the iPod, he worked closely with Steve Jobs, and he had another company
sold to Google Nest for $3 billion. This guy is clearly winning. But he also talks about losing a little bit.
BOULDEN: Let's listen to some of that.
(BEGIN CLIP)
TONY FADELL, FOUNDER AND CEO: You will fail. You're going to fail a lot. I, you know, I had many companies and did many things before the
iPod. And it was perseverance. You know, and learning through that and just continually trying and trying but really understanding what is wrong -
not just with your idea of the product, but what you need to change inside of how you listen to your gut, how you listen to others.
(END CLIP)
SEGALL: You know, Jim, to hear a founder like that get up and talk about failure when he's had so much success. You really begin to
understand that failure is such an integral part of success. And that's important for the people in the audience who are these entrepreneurs
building up companies - very important for them to hear the lesson from the Web Summit.
BOULDEN: Thanks, Laurie. Now, if you want to see the complete interviews and all of our coverage from the three days here - the Dublin
Web Summit - you can always go to CNN.com/websummit. Jim Boulden, CNN Dublin.
(END VIDEOCLIP)
LAKE: It has been a record-breaking day on Wall Street. We'll tell you exactly how good it's been after the short break.
(COMMERCIAL BREAK)
LAKE: It has been another record-breaking day on Wall Street. As you can see, the Dow up 39 points. The Dow and the S&P 500 both extend their
record run. Now, those gains on the Dow are pretty modest, but it is up 6.2 for the year, the S&P 500 up 10.3 percent for the year. Not bad.
European stocks ended Monday's trading higher as well. The London FTSE kicked up 2/3rds of 1 percent, boosted by some positive corporate
earnings. Elsewhere in Europe, the DAX saw a similar gain and the Paris CAC added 8 tenths of 1 percent. Carlsberg, the Danish brewer with a big
presence in Russia, met earnings estimates and saw its stock rise over 3 percent. The CEO, Jorgen Rasmussen told CNN doing business in Russia has
been a challenge.
(BEGIN VIDEOCLIP)
JORGEN BUHL RASMUSSEN, CEO, CARLSBERG GROUP: So it's not like it's not possible to make in Russia, but you're right, it has been a challenging
time the last four or five years because of regulation, because of the global crisis and now lately this geopolitical situation between Ukraine
and Russia, and then linked to E.U. So it has definitely been very challenging for Carlsberg, and despite our strong performance in Western
Europe, in Asia and even within Russia, but in a very, very - let say - difficult markets - it has been a challenge for Carlsberg.
(END VIDEOCLIP)
LAKE: And that's "Quest Means Business" for today. I'm Maggie Lake in New York. Thanks for joining us. We'll see you again on Tuesday.
END
