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Quest Means Business
OPEC: No Oil Production Cuts; WTO Agrees Global Trade Deal; E.U. Lawmakers: Break Up Google
Aired November 27, 2014 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN HOST: In the United States, it is a day of Thanksgiving, parades through New York. The markets are closed. But for
the rest of the world, as you know, it`s business as usual on Thanksgiving Day Thursday, November the 2th.
Tonight: OPEC has blinked and oil prices plummet. Leaders voted against a cut against production.
Officially back in business. The head of the WTO tells me his new trade deal gives him hope.
And a crucial step in the fight against Ebola. A major breakthrough on a vaccine. I`m Richard Quest. Forget Thanksgiving. I mean business.
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QUEST: Good evening. OPEC said it won`t cut oil production and that very announcement sent oil prices sliding to the lowest level in four years.
The foundation cartel is facing a global oil glut and the realization, it`s no longer in control of global oil prices.
Some OPEC members argued output should be cut to support prices, but they were outvoted. And OPEC secretary-general says there`s no need to panic.
(BEGIN VIDEO CLIP)
ABDULLAH AL-BADRI, OPEC SECRETARY-GENERAL: For four and a half years we`ve had a very decent price so now that`s declined, that does not mean that we
should really rush and do something. We have to wait and see how the market will settle.
(END VIDEO CLIP)
QUEST: "Wait and see how the market will settle." That we have heard again and again. We heard it before the meeting, during the meeting, after
the meeting. Well, look and see how the prices have settled. The oil prices have been falling all week long, following the announcement. The
fall turned into a plunge from $78 -- well, we`ve seen a plunge down here. Then of course you continue trading. But look what happens. Brent crude
fell more than 6 percent at $73 a barrel. Analysts say the support price that would need, if you want to get this up, the support price, it would
have to be a cut of about 1.5 million barrels a day.
If things continue at the same level of output with the reduced level of demand, prices could hit $60 a barrel. Well, this is the market`s view.
But the decision not to cut production has exposed deep divisions among the oil cartel members. All 12 of the members, from Qatar to Venezuela, all of
them rely heavily on oil income to finance government spending.
Now at today`s prices of roughly $73, just about here, you can see there`s only a handful really at $73 that are able to balance their budget. Saudi
Arabia, which needs a price of $99 argued against cuts.
Why, you might ask, if they need it to balance the budget? They`re playing the strategic game. They are hoping cheap oil will dampen U.S. shale.
It`s a cushion of years of saving trillions of dollars from Saudi.
But for some countries, take, for example, Venezuela, needed $162 or Iran needing $135 or Nigeria at $126, these countries are in deep trouble at
these lower prices. Perhaps only Qatar can survive on its budget of $60.
John Defterios is our emerging markets editor and joins me now from Vienna, where OPEC met.
Well, I can`t decide. We knew this was going to be the likely result, John.
But does this firstly expose the grave weaknesses within OPEC?
And secondly, have the members shot themselves in both feet?
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Well, we don`t know if they shot themselves yet, Richard, but this was a very deliberate strategy that
you and I have talked about over the last two days. I`m calling it the showdown at the OPEC corral, as 12 members in the ring, four of them,
carried the sway; that is Saudi Arabia, Qatar, Kuwait and the United Arab Emirates. They have built up a war chest of savings of $2.5 trillion. You
talked about the countries that are suffering. But those four countries seem prepared to go into a price war and use their savings to send a
message.
(BEGIN VIDEOTAPE)
DEFTERIOS (voice-over): It was billed as the most contentious OPEC meeting in years and without a clear consensus, it lived up to expectations. The
dozen countries, some richer than others, chose not to cut production, despite falling prices.
Here is my exchange with OPEC`s secretary-general.
DEFTERIOS: Are you sending the signal that you`re happy to let prices drift lower because of market share
AL-BADRI: I`ve said many times to you that we don`t want to bannick (ph). I mean it and also we don`t want -- we want to see the market, how the
market behave because the decline of the price does not affect the fundamental exchange.
This is true as far as we see it here in OPEC.
DEFTERIOS (voice-over): Prices were down 30 percent since June, when the ministers arrived for their one-day session. They fell even more, nearly 7
percent, after the market interpreted the decision as leading to a potential price war.
The strategy was authored by Saudi Arabian oil minister Ali al-Naimi, who seemed pleased he carried sway.
ALI AL-NAIMI, SAUDI ARABIAN OIL MINISTER: I told you before that there is no cut.
DEFTERIOS: So they stuck with this idea that they don`t need to cut and just let the market determine the price?
AL-NAIMI: That`s right.
DEFTERIOS (voice-over): In the meeting room, there was no one laughing during the price debate.
This is the ministerial conference which, of course, is packed. There`s a lot of people here from the industry who meet with the ministers on the
sidelines. It has garnered a lot of media attention as well as the product of the $40 fall we`ve seen in five months. But the advent of shale
production is like adding another OPEC member to the mix, the size of, say, Kuwait.
Members like Algeria and Nigeria, with bigger populations and budget constraints, were forced to go along with this tough stance, hoping it
will lead non-OPEC players to intervene.
UNIDENTIFIED FEMALE: Well, a lot of us are feeling the pain right now. But again, we have a situation where you have OPEC and you have non-OPEC.
And I think that very shortly now both sides of the coin will have to share the burden of oil, falling oil prices.
DEFTERIOS (voice-over): After this meeting, it may be a question of who will blink first -- John Defterios, CNN.
(END VIDEOTAPE)
DEFTERIOS: Will it be OPEC that blinks right now, Richard? Or going to be Russia or the United States? That`s a big question. Many here on the
ground in Vienna say that this decision targets Russia on one hand, Iran, which is a member of OPEC, but particularly the shale producers that they
think need $75 or more. And as you know, we broke through that today. So this is going to be ratcheting up the pressure on the shale production, of
course, in the United States.
QUEST: The difference here, John, is that OPEC would have made a decision in this, put a decision by government fiat. They would have decided we`re
going to do this and turned off the spigot.
To get a reduction in shale involves individual producers deciding to stop producing. It`s different; it`s more complex. It`s not going to happen as
fast.
DEFTERIOS: Yes. In fact, you make a very good point. I don`t see cooperation from the shale producers. But this is a much more high-stakes
game here by OPEC, Richard. I think they`re suggesting if they push the price lower, the financing for the shale producers will not come through.
If I`m going to invest in shale oil, I`m going to see $80-85-90 a barrel coming in.
Well, I really want to invest with the falling price breaking through $70 for West Texas Intermediate right now. That`s the bet that OPEC`s making.
And the other point that I would make here, Richard, many say OPEC`s lost its way. They have two-thirds of the proven reserves and it`s cheap oil to
produce. Saudi Arabia, Iran could come on strong if they lift the sanctions. Iraq, the UAE, Kuwait, ample reserves. It looks like we`re
going for a price war. I don`t want to overplay it. But that`s the message I`m getting here in Vienna.
QUEST: And your best guess for where the price of oil goes from the people you`ve spoken to? I alluded to $60 a barrel.
Is that realistic short-term, John?
DEFTERIOS: I read the same predictions as you had, Richard. I bounced it off a number of different ministers. Minister Madueke of Nigeria showed
some alarm and was saying OPEC doesn`t seem to be working for the collective good of all 12 members, and she said, look, this is painful for
us. But we want the other producers around the world to contribute, the non-OPEC producers, the --
(CROSSTALK)
DEFTERIOS: -- sources I spoke to today, Richard, they`re ready to play hardball right now. They`re ready to push the market and see what happens
to the U.S. shale production and also Russian production as well.
QUEST: Russian production, John Defterios, who`s in OPEC.
If you want to see exactly how non-OPEC producers feel the pressure from low oil prices, you really do need to look no further than Russia. Forget
the U.S., with its shale oil price in dollars, which is the petro currency, the ruble is now down 3.5 percent today against the dollar on the prospect
of a falling price in oil.
Russia produces 13 percent of the world`s oil. Well, that`s the situation for the currency. You want to see how closely ruble`s fortunes are tied to
oil prices, look at this. Get in there and you see Brent crude comes down; the ruble versus the dollar follows it almost like -- with the exception of
this line in the middle of September -- almost bit by bit.
Both are down around 30 percent this year. And not surprisingly, the finance minister has said the Russian economy`s losing 100 billion of
income a year from this cheaper oil and says the government must curb spending.
So if you want to know why oil prices are falling, it`s because of Russia, OPEC, the U.S., continuing to produce even though there`s a glut and demand
is falling.
Energy prices and energy shares were under pressure in Europe after that OPEC decision. You had three that were up, one that was down. In London,
petro 5 (ph) PG group (ph) and Shell were some of the biggest losers as the FTSE ended just off a tad. In Frankfurt, stocks rose after unemployment in
Germany fell to a record low, 6.6 percent. Gains in Paris and in Zurich.
It`s a trade deal. It was a (INAUDIBLE) hoped for, but it was a deal. It`s only taken 13 years of on again, off again talks. And it`s not much
of a deal to talk about. But the head of the WTO, World Trade Org, tells me now the hard work begins. This is QUEST MEANS BUSINESS.
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(COMMERCIAL BREAK)
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QUEST: Ah, a bit of history. The year: it was November 2001. The Dow Jones was at 9,800. Concorde had started carrying passengers again after
the Paris crash. And OPEC --
(LAUGHTER)
QUEST: -- OPEC was putting off plans to cut production. So maybe not everything was very different. But on that November date in 2001, the
World Trade Organization set off on an epic program of trade talks. Those talks are known as the Doha round. Thirteen years later, 13, finally some
concrete progress.
Back in business, trade officials are saying it means WTO is back in business even though all the excitement is about a teensy-weensy little
deal. Members have agreed to standardize procedures for customs checks when goods cross borders. Now it sounds undramatic (sic). Politicians say
it`s essential to speed up trade when going from Asia to Europe or the U.S.-Latin America across to Africa and so on. You get the idea: customs
duties, customs forms, customs bureaucracy. The savings are possibly huge. Supporters say it`s up to $1 trillion a year, which will create millions of
extra jobs worldwide.
So maybe not so teeny-weeny, an important deal no doubt. But it`s not the deal they were hoping to do. That, of course, is the Doha round. I spoke
to the director-general of the WTO. He told me that negotiating work is back on track and when Doha`s concerned, there`s no time to lose.
(BEGIN VIDEOTAPE)
ROBERTO AZEVEDO, DIRECTOR-GENERAL, WTO: The first step is to adopt a protocol which is now going to members, and they`re going to go through
their internal process, some countries have to take the agreement to Congress. Others can do it as an executive decision. So each one will go
through his own internal process and will subsequently deposit in the WTO an instrument of acceptance. When two-thirds of the members have deposited
that instrument, then the agreement enters into force for that two-thirds; and the other ones come in subsequently.
QUEST: You`re going to change the rules so that a country can no longer stonewall the process, pretty much as India did with the Bali agreement.
You`re going to change things?
AZEVEDO: This is a conversation that members will have to have, how they want to proceed from this point on. The consensus is never going to
disappear. This is very important. I think people sometimes think that when we say something about doing things differently, we`re talking about
getting rid of the consensus. That is never going to happen. The idea is how do we make agreement, how do we craft deals which can be put in place
with working with the consensus. So that, I think, would entail some degree of flexibility in the agreement so that those who can implement do
it and those who cannot will join later.
But this is easier said than done. So that`s precisely the kind of conversation we need to have.
QUEST: You set a deadline of July for next year to conclude a work program, to conclude the Doha round, our old friend, the Doha round.
Realistically, between now and July, what on Earth do you expect to happen with that albatross?
AZEVEDO: We`re not starting from scratch; don`t forget that last year we had six months of conversations before we hit the roadblock, right? So we
did some work. We know where the challenges are. It is not going to be easy, Richard. It`s going to be extremely -- it has always been very
difficult. But I am absolutely convinced that this is not impossible. We have done some soul-searching in the first semester of last year. We had
to resume that.
What is important is that 160 members today said that they want to do it. And I believe them. So I had to help them to get there.
(END VIDEOTAPE)
QUEST: European lawmakers have voted strongly in favor of forcing Google to break itself up. They say its dominance makes it a virtual monopoly.
Now the vote doesn`t mean Google will necessarily be split up. It`s not binding on European regulators. The E.U. Parliament is recommending the
Google Search business is split aside from its other operations. It would then form a separate entity. It would have other business and Search.
Members of Parliament have no authority to actually enforce such a breakup. That would go to the regulators and to the commission.
But the mere fact that the parliament has sent such a message, that will be taken seriously by the commissioners. Rivals are watching the Google case
very closely; Yelp review site has complained that Google is giving less prominence to its reviews than to Google`s own. Yelp`s director of public
policy, Luther Lowe, joins me now from San Francisco.
Luther, obviously you have a vested interest in this. And I`m sure you`ll tell me that consumers have a vested interest in it as well. But
fundamentally, you would like to see the parliament`s recommendation be followed by the commission.
LUTHER LOWE, PUBLIC POLICY, YELP: Richard, thank you for having me on. Happy Thanksgiving from San Francisco.
The -- what`s going on in Europe today is that a strong message was sent that Google`s abusive dominance, its stifling of innovation, its prevention
of competition, and worst of all, its degradation in consumer welfare should end. And the signal that they`re giving to the European Commission
is it should use all tools available to -- Commissioner Vestiger (ph) and DG competition (ph) should use all the tools available to ensure that
consumer welfare is maximized.
QUEST: So come on; let`s strip down to basics here. You want them broken in two or beyond.
LOWE: Well, here`s the problem in local search, the world that Yelp and TripAdvisor and --
QUEST: Forgive me, sir, because I can hear the viewers saying, oh, he`s not answering the question.
You know, is it time to break up Google?
LOWE: Richard, when a mother in Berlin does a search for a pediatrician on Google today, she sees a hardwired Google Plus paired box. She`s not
seeing the best information on the Web, which Google is perfectly capable of serving up with its organic algorithms. And so what we`re concerned
with is the tying of Google Plus local and the Google Plus products to its outstanding search technology. And that`s really what the issue is here.
And so if non-binding resolutions like this lead to broader discussions and examinations of these problems, then that`s a step in the right direction.
QUEST: And what seems to be happening is perhaps the question asked, who does have the power to break up a Google, something like that, is it the
case where it`s the FTC in the United States, the DOJ in the U.S.? Or is your feeling that for this sort of regulation, it may well be the Europeans
that lead the way?
LOWE: Well, Europe is certainly the battleground, so to speak, where a lot of these discussions are very active right now; the Federal Trade
Commission, unfortunately, really didn`t do anything meaningful in its investigations. And so the landscape right now where these debates are
happening is Europe and the European Commission.
Now the good news is, Google doesn`t have to be broken up. Google could very easily solve these problems itself by implementing some of the
solutions we proposed on focus on the user dot E.U., where effectively you turn on the Google algorithm for local searches and allow meritocracy to
define how search results are served up.
Today Google Plus is the dominant way of it -- local search results are seen. And so when you do a search for a bicycle repair shop in Denmark or
a pediatrician in Berlin, you`re not going to see the best information on the Web. And in a sense, that`s Google breaking a promise to its users.
We`re just asking Google, hey, start acting more like Google.
QUEST: Yes, but you`re also -- you have a bested interest.
LOWE: Ultimately this is about consumer welfare, Richard --
QUEST: Oh, I don`t think you need to be embarrassed about admitting a vested interest. You`re claiming that you`re one of those who`s being
harmed.
LOWE: Well, to be sure, the preferencing of Google`s own property and search results ensures that competitors like Yelp and TripAdvisor and
others are not -- aren`t exposed to as many consumers. But ultimately it`s about the consumer outcome, is if a consumer`s not getting the best
information on the Web and may not even be aware of it, that`s not a great outcome. And so that`s what really focus on the user dot E.U. is designed
to educate folks about, is how consumers are ultimately the ones who have skin in the game here.
QUEST: Thank you.
Now -- and of course, thank you; I need to apologize to you for not wishing you a Happy Thanksgiving as we began. Good of you to come in and talk to
us on your Thanksgiving Day, sir. Thank you.
LOWE: Anytime, Thank you, Richard.
QUEST: Now with a computer on your desk and a phone in your pocket, how often do you actually need or have to go to the bank? Now your bank is
trying to lure you back to the branch.
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(COMMERCIAL BREAK)
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QUEST: Only two days after a shakeup at the top banker, Santander, while the bank is now pushing ahead to an overhaul to its business. Santander is
taking a 5 percent stake in a mobile banking firm, Monitise. MasterCard and Telefonica are making smaller investments as well. It values Monitise
around $1 billion, sizable sums at the bank.
Mobile banking, as you can now gather, has dramatically changed the industry, as we look at "Tomorrow Transformed," we consider how now some
banks are worried the pendulum has swung too far away from bricks and mortar.
(BEGIN VIDEOTAPE)
(MUSIC PLAYING)
QUEST (voice-over): There was a time when handling your money meant popping down to your local branch to do a bit of banking. Today, much of
that bank fits into the palm of our hands. A click here, and we check our balance. A few swipes and money is transferred anywhere in the world.
Taking a picture can deposit a check. Across the financial world, these services are being offered digitally and consumers like them, which begs
the question: What happens to those expensive branches?
Interestingly, they might have bright prospects ahead.
The future of banking might take us back into our local branches as traditional banks look for ways to make their physical space as enticing as
the virtual one.
EVE CALLAHAN, SVP, UMPQUA BANK: The branch model is outdated and not relevant any longer. We`re looking to create a different kind of bank, one
that offers all the products and services of a large bank, but delivers them with the real community engagement and the service of a great retailer
or hospitality company.
QUEST (voice-over): Oregon-based Umpqua Bank have adopted what they call the store concept for their 364 branches. It`s modeled after retailers
like the Gap and the Apple store. The goal is to attract customers with a more comfortable, a more welcoming experience.
CALLAHAN: We recognize that consumers are looking for physical as well as online and mobile. They want to be able to engage with the company in a
way that`s convenient for them.
QUEST (voice-over): Umpqua`s store in San Francisco is the latest evolution of this concept. Want information? View it on their catalyst
wall instead of a brochure. Need a meeting room? Rent one of theirs at no cost. Even if you just want a place to have a coffee, put your feet up and
use wi-fi, the Umpqua doors are open.
ABDUL SANGER, UNIVERSAL ASSOCIATE, UMPQUA BANK: There`s no pressure that you`re not customer with us. So welcome them, regardless they have a
relationship with us or not.
VIRGINIA KELLY, UMPQUA CUSTOMER: We still do our banking online, but we come here because of the community, because of meeting the people that we
see when we come here.
QUEST (voice-over): And that`s the key. Bankers rely heavily on face-to- face relationships to offer financial products and services. So they`re offering new enticements to lure Internet and mobile customers back into
the branch. Banks like Barclays, Chase and Citibank have all created these new branches with that very thought in mind: trying to capture the new
banking consumer.
CALLAHAN: How companies come up with a model that creates a truly integrated customer experience, I think those companies are going to be the
organizations that really win in the future.
QUEST (voice-over): How fascinating, digital and physical coexisting and thriving in the banking world.
(END VIDEOTAPE)
QUEST: "Tomorrow Transformed."
There`s new hope in the fight against Ebola. Human trials of an Ebola vaccine are being described as an unqualified success and the World Health
Organization says they`re cautiously pleased.
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(COMMERCIAL BREAK)
RICHARD QUEST, CNN INTERNATIONAL ANCHOR AND REPORTER HOST OF "QUEST MEANS BUSINESS" SHOW: Hello, I`m Richard Quest. There`s more "Quest Means
Business" in a moment. This is CNN and on this network the news always comes first. The Taliban`s claiming responsibility for two attacks in
Kabul on Thursday. A suicide bombing hit a British embassy vehicle. It killed five people, including a British national. The second attack
targeted a foreign aid organization. Officials in Mexico now say the bodies of 11 young adults have been found
in southwest of the country, close to where 43 students went missing in September. The bodies were partially burned and some had been decapitated.
The remains have not yet been identified. Officials are not saying whether there is a connection between this discovery and the missing students.
The Australian cricket world has lost one of its most promising players. Phil Hughes died from head injuries that he received in a match on Tuesday
in Sidney. The batsman was struck on the back of the head by a bounce that resulted in the fatal brain injury. Phil Hughes died. He was age 25.
The oil cartel OPEC says it won`t cut oil production and that announcement sent oil prices sliding to the lowest levels in four years. Some members
of the group argued output should be cut to support prices. They were outvoted and OPEC`s secretary-general says there`s no need to panic.
(BEGIN VIDEOCLIP)
ABDULLAH AL-BADRI, OPEC SECRETARY-GENERAL: Four years or four years and a half, we have a very different price, so now price declined. That does not
mean that we should really, you know, rush and do something. We have to wait and see how the market will settle.
(END VIDEOCLIP)
QUEST: U.S. stock markets were closed on Thursday. America was celebrating Thanksgiving. Thousands gathered in New York to watch the
traditional Macy`s Thanksgiving Day Parade. President Barack Obama celebrated the holiday by calling American troops stationed abroad and
thanking them for their service. The German airline Lufthansa today delivered a special plane to the German
government. The Airbus passenger jet has been converted to transport and treat Ebola patients. It`s a refurbished Airbus A340. It`s been named the
"Robert Koch" after the German scientist who pioneered the study of bacteria and disease. As you can see, this aircraft has special isolation
unit on board. The German foreign minister said Ebola is still a massive risk to the world.
(BEGIN VIDEOCLIP)
FRANK-WALTER STEINMEIER, GERMAN FOREIGN MINISTER, VIA INTERPRETER: The risk that the Ebola virus continues to spread in neighboring regions is not
over and we have to acknowledge that we, the international community, have arrived a little too late. And ever more so are we now called upon to do
as much as possible. And this is what the German federal government is doing and what all the volunteers who have gone to the region to help and
to provide for the sick are doing. And we would like to express once again our deepest gratitude.
(END VIDEOCLIP)
QUEST: There is new hope in the fight against Ebola. Scientists in the United States say they got promising results from phase 1 human trials of
an experimental vaccine. The British pharmaceutical giant GlaxoSmithKline teamed up with researchers in the U.S. to fast-track the vaccine. The
current Ebola outbreak has claimed 5 and 1/2 thousand lives in West Africa. I spoke to Margaret Harris from the World Health Organization, and I
suggested that the retrial results were very encouraging, and that boded well.
(BEGIN VIDEOCLIP)
MARGARET HARRIS, EBOLA SPOKESWOMAN, WHO: I`d have to agree. It also reflects the excitement the scientific, medical - well everybody who`s
dealing with Ebola particularly is feeling at the speed and the effort that`s been put into this work. And not only has this effort been booting
(ph), but it`s achieving results. So it is - it`s really exciting.
QUEST: Now phase 2 of course will be to vaccinate many health workers, but how quickly do you think we can get to phase 2 of these tests and then on
to a more general vaccination of the population.
HARRIS: Well those are the big questions, and that`s exactly what a large number of groups are working on right now. The hope is that we can be
looking at phase 2 in the middle of January.
QUEST: Is it the WHO`s or your view that the companies involved - particularly GlaxoSmithKline and others - should be allowed to have an
indemnity against future claims for any - I use the word advisedly - any negligence, anything that goes wrong with these vaccines, any problems in
the future. Because it seems to me we`ve said to them, `Get these things out as fast as possible,` yes, as safely as possible but in 5/10 years`
time there`s a problem, they rightly would say, `Well hang on, we`ve been left carrying it.`
HARRIS: That`s the vexed question that, again, has exercised some very, very brilliant minds in this world and some brilliant minds that work with
us. I`m not here to make a pronouncement on that, so I`m not going to. But it certainly is an excellent question that needs to be discussed.
QUEST: No doubt. The WHO and others - if this works or is the best solution so far, you`re going to need money for the vaccines,
infrastructure to get the vaccines into country and personnel to actually vaccinate them. Otherwise, you`ll be sitting there with an answer but
nobody`ll know the question.
HARRIS: You`re absolutely right. It`s all very well having the magic bullet in your hand, but it`s got to be delivered. And that is indeed the
hardest part - that`s the hardest yard of all the yards you`ve got to cover - that getting those vaccines out to every place. We know these are very
difficult places to do anything in, any kind of medical care is difficult to achieve. That`s why we`ve got raging epidemics - a raging outbreak - in
these countries. So absolutely. We`re going to have to have a lot of personnel, we`re going to have excellent infrastructure, we`re going have
to manage the code (ph) chain and, again, there are a large number of people working out how we`re going to do that right now.
QUEST: I don`t want to rain on anyone`s parade when there is good news of this nature. But the fact is these vaccines didn`t come from nowhere, and
the research and development didn`t happen when this outbreak began. So they were in the pipeline. The tragedy is it took this outbreak to give
effort to give it a boost, to get people on with it.
HARRIS: Well that`s certainly being raised, but I think if you look at the history of infectious diseases, that is often the case - that the real
impetus to get something out is when humanity is crying out for it. But the converse of that is that research was ongoing, and there was some
extremely good work and some very hard work. So, had that work not been done, we would have had nothing.
(END VIDEOCLIP)
QUEST: As we continue on "Quest Means Business" - tragedy on the pitch. Cricketers past and present pay tribute to a young Australian batsman who
lost his life in a freak accident.
(COMMERCIAL BREAK)
QUEST: The cricket world has been shocked by the death of the 25-year-old batsman from Australia, Phillip Hughes who suffered severe head trauma on
Tuesday after being struck by a ball during a match. Medical experts in Sydney say Hughes suffered and extremely rare injury. It`s being described
as a freak accident. News of his death has stunned his family, friends and his teammates. Those in the sport are mourning this young batsman and
paying tribute to his great talent.
(BEGIN VIDEOCLIP)
MICHAEL CLARKE, AUSTRALIAN CRICKET CAPTAIN: We`re very sad about the loss of our much-loved son and brother, Phillip. Cricket was Phillip`s love
(ph) and we as a family shared that love of the game with him. We love you.
TONY ABBOTT, AUSTRALIAN PRIME MINISTER: The death of Phillip Hughes has shocked and dismayed millions and millions of Australians. Obviously our
thoughts and prayers are with his family.
MIKE GATTING, FORMER ENGLAND CRICKET CAPTAIN: He was a very talented cricketer, a lovely bloke, a humble bloke who was prepared to work hard at
his game to try and be the very best he could be. And he was desperately keying (ph) to play more for Australia.
QUEST: Phil Hughes would have been 26 on Sunday. CNN`s Alex Thomas now looks at the life that`s been cut off so tragically.
(BEGIN VIDEOCLIP)
ALEX THOMAS, CNN SPORTS CORRESPONDENT: Phillip Hughes was the embodiment of Australian fighting spirit, the perfect man to wear the famous baggy
green cap and the history it symbolizes for an entire nation. Born on a banana farm in the northern expanses of New South Wales, he developed an
unorthodox batting style that became his trademark. And with it, he rose to the very top of his sport - opening the batting in the Ashes - the
historic contest between Australia and England.
JAMES SUTHERLAND, CEO, CRICKET AUSTRALIA: Without doubt, he was a rising star whose best cricket was still ahead of him. He was a hero to kids
around the nation, particularly those in the region around his home town of Maxville in New South Wales.
THOMAS: Hughes was tipped for the top from a young age. His talent was undoubted. But it was his mental strength that shone through. Aged only
20, he made his test debut against South Africa in 2009. And in only his second match, became the youngest ever to score a century in each innings.
His form suffered dips in the years that followed, but a determination to never give up saw him reclaim his place in the side. He was sent to return
to the Australian team next week against India. Softly spoken, he preferred to let his batting do the talking. And his teammates and
Australian cricket fans loved him for it.
KEITH BRADSHAW, SOUTH AUSTRALIAN CRICKET ASSOCIATION: Loved by everyone, Phillip was a quality guy and a remarkable talent. He had many friends and
teammates both here in the state and overseas. And it important that we offer them all the support and space they need to help deal with this
tragic event.
THOMAS: Hughes lost his fight for life just days short of his 26th birthday. His best years were still ahead of him. A freak accident has
claimed one of cricket`s brightest young talents and left the sporting world in mourning.
(END VIDEOCLIP)
QUEST: It`s being described there and by others as a freak accident. Patrick Snell joins us now from CNN Center. Patrick, if this is a freak
accident and as I understand it, there`s only been pretty much one or two other similar cases where a ball has caused this sort. No amount of
looking at what can be done really can necessarily prevent it in the future. He was wearing a helmet.
PATRICK SNELL, CNN WORLD SPORT: Right. And some players never did, Richard. The legendary Viv Richards never wore a helmet throughout his
phenomenally successful top flight playing career. But, look, yes, helmets have been around for decades now and this is absolutely what`s being
described by the Australian team doctor, Richard, described it as a `freakish accident.` The helmet in a sense did do its job in that it
protected the cranium, it protected his head. It was just that little freakishly small area - it gets through at the back of the neck, the ball
traveling at around 90 miles an hour. It`s coming up off that surface there on the hard track there in Sydney and New South Wales and with fatal,
fatal consequences too. And you know his career had been looking as though it was on the up as well -
QUEST: Right:
SNELL: He`d been out of the Australian test team in and out over the last few years, but reportedly back on the brink of a recall to the side. But
you`re quite right, Richard. It is quite appropriate that the debate on player safety and helmets that go with the game at this highest level of it
remain front and center right now.
QUEST: If that`s the case, help us understand, Patrick, what are some of the suggestions of what might happen? I mean, you can make the helmet
bigger. That would obviously make it more difficult for the players. You can - I mean, what sort of - what are people - it`s early days I realize.
But what are people saying that could happen to change?
SNELL: Well let`s get onto that. Let`s bring in some sound from someone who`s played at the very highest level of the game - a former England
captain Allan Lamb talking about this very, very topic. Let`s hear it right now from Allan Lamb speaking earlier to CNN.
(BEGIN VIDEOCLIP)
ALLAN LAMB, FORMER ENGLAND CRICKET CAPTAIN: The helmet has been safe, you know, for years. I mean, Kieswetter got a ball that came through the
visor and broken his nose. So it`s not 100 percent safe. There`s no rule written in that wearing helmet is going to protect you. It`s to protect
you from certain injuries, but no one expected someone to lose their life wearing a helmet.
(END VIDEOCLIP)
SNELL: Really tragic story. We`ve been following it every step of the way here in the CNN sports office just across the call - the hallway - here in
Atlanta. Really, really difficult to work on this. A player struck down, Richard, in the prime of his life. He would have turned 26 on Sunday.
Richard.
QUEST: Patrick Snell who is at CNN Center for us this evening. "Quest Means Business" continues.
(COMMERCIAL BREAK)
QUEST: Brazil has a new finance minister. President Dilma Rousseff - she started her second term and has appointed an experienced banker to the job
-- Joaquim Levy. Levy is seen as a market-friendly figure and the stock market rallied - look at that. Up 6 percent, just on the rumor that he was
the frontrunner. Now for the year, the market is up 6 percent, so the dear Joaquim Levy has literally taken - erased the losses - taken the market up
in just his name. Now this new finance minister has an impressive background. He has an unusual nickname. Shasta Darlington explains from
Sao Paulo.
(BEGIN VIDEOCLIP)
SHASTA DARLINGTON, CNN BRAZIL BUREAU CHIEF: The Brazilian president has named a new economy minister, a man known by the nickname "Scissorhands."
Joaquim Levy, an investment banker, former head of the treasury under the previous government. He studied at the University of Chicago and is known
as a workaholic who stands his ground. Now the appointment was pretty widely expected as was another name that President Dilma Rousseff
confirmed. She said the new planning minister will be Nelson Brabosa. He`s the former deputy finance minister. The two men will take over their
jobs at the beginning of the year. And we can expect more orthodox economic policy ahead.
Nonetheless, the appointments are aimed at boosting confidence in the economy after a recession in the first half of the year, rising inflation
and a tanking market. One of the biggest challenges that Levy will face will be reigning in spending and making sure that Brazil doesn`t face a
ratings downgrade. During a press conference after the announcement, he said it`s time to encourage Brazilians to stop spending and start saving.
And he said the government could set an example by doing the same.
(BEGIN CLIP)
JOAQUIM LEVY, NEWLY-APPOINTED BRAZIL ECONOMY MINISTER, VIA INTERPRETER: It`s important for people to have savings. Toward that end, the federal
government can set an example by increasing its savings. Specifically, the primary surplus.
(END CLIP)
DARLINGTON: Now, the markets have been waiting a good month to find out who Rousseff would choose as her new economy minister in her second
presidential term which begins in January - whether it would be someone from within the ruling Workers Party who would really stand behind her or
someone more independent who would solve the fiscal problem and stand up to the president if necessary. At this point, markets are optimistic they got
what they wanted. Shasta Darlington, CNN Sao Paulo.
(END VIDEOCLIP)
QUEST: Executives from HKND, the Chinese company that`s been chosen to build a rival to the Panama Canal in Nicaragua this weekend where they
discussed the project with President Daniel Ortega. According to its (packers), this new canal will be bigger, longer and wider than the Panama
Canal itself. It`s just a few hundred kilometers further south. The project`s being greeted with widespread criticism and fierce skepticism as
CNN`s Jonathan Mann explains.
(BEGIN VIDEOCLIP)
JONATHAN MANN, CNN, HERLESHAUSEN, WEST GERMANY: The Panama Canal may be given some competition, at least if the Nicaraguan government gets its
wish. If all goes as planned, construction on a giant trans-oceanic canal across Nicaragua will begin as soon as next month. Chinese investment firm
HKND Group is leading the project. The plan`s route is 172 miles long - more than three times the length of the Panama Canal. It comes with a
promise of economic benefits, but many questions remained unanswered. Like who`s going to foot the bill for the $50 billion project?
RICHARD FEINBERG, SENIOR FELLOW, BROOKLYN INSTITUTE: There is no sense - and I want to underscore no sense - as to where this $50 billion would come
from. They have not floated any bonds in international markets, the Chinese company has nothing like that sort of internal capital to put up
the equity and sell. And so far, we`ve heard nothing from the Chinese government as to whether or not it might be willing to finance a big chunk
of this project.
MANN: What happens to farmers and indigenous communities along the canal route? And what risks are posed to the country`s drinking water? The
planned canal cuts through Lake Nicaragua, their primary freshwater reservoir.
FEINBERG: That`s what we need to see more studies on to really have a good sense as to just how severe the damage would be, what it would cost to
mitigate some of those damages, how much money would be paid to those persons or companies that are adversely affected. All this fundamental
information has yet to be released by the government or the Chinese company.
MANN: Despite the concerns, developers stand by the project.
ZHU XIAOYA, HKND GROUP, VIA INTERPRETER: Some voices of doubt and even outright opposition have emerged out there. We want to express our
understanding.
Male, VIA INTERPRETER: We are saying that all the people who have not gotten the proper information, we are convinced they will be in agreement
with this project because it is for their benefit as well. We will talk with each one of them, with every community, with every property owner,
homeowner, etcetera.
MANN: Others are more skeptical. Will this actually help the economy? Is there a need for two canals in the same region? What if the money runs
out? All questions perhaps better answered before the project begins. Jonathan Mann, CNN.
(END VIDEOCLIP)
QUEST: Now, you didn`t have to be that close of attention at the start of this program to notice there was no closing bell (RINGS BELL) - for good
reason. We started today with the traditional Macy`s Thanksgiving Parade. It was as spectacular as always. Pokemon, Power Rangers and, well there he
is, Thomas the Tank Engine balloons. They were some of the characters who appeared on the streets of New York - one of the millions of people who
watched either there or on television. Not in the way of the balloons was our very own Miguel Marquez.
MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT BASED IN NEW YORK: Well at 2014 Macy`s Thanksgiving Day Parade is over sadly. Now it`s just a matter of
clearing the streets and everybody getting home for that delicious turkey dinner. Fantastic day out here - 49 balloons of all shapes and sizes,
those infamous Macy`s Day Parade balloons, 27 floats, 12 marching bands, some 1,300 cheerleaders and dancers, and 1,000 clowns. We even got to talk
to one of the entertainers, Meghan Trainor who was in the parade for the first time.
MEGHAN TRAINOR, SINGER: It`s incredible. I`ve never got to see, like, the parade in person. And it`s my first year and I`m actually on it.
MARQUEZ: So you`ll be on a float going down New York`s streets?
TRAINOR: Yes, I`ve never done this. No.
MARQUEZ: Just weird was the word?
TRAINOR: Yes, I was asking like other artists at the hotel - `have you done this?` They`re like no, first year. So this is the first year for
all of us, I guess.
MARQUEZ: There were some concerns here about the parade possibly being disrupted by protesters. You know, we`ve had some in New York the last few
days. There were threats that was going to happen, NYPD saying that they could deal with anything that came along. They were not going to take that
hand that they had with them previously where they let them move all over the city. No big concerns. There were a few arrests and possibly some
protesters, but nothing very serious. It`s a fantastic day and a very, very Happy Thanksgiving. Miguel Marquez, CNN.
(END VIDEOCLIP)
QUEST: And now of course, the parade is over, the turkey`s being eaten, Black Friday comes next for spending. We`ll have a "Profitable Moment"
(RINGS BELL).
(COMMERCIAL BREAK)
QUEST: Tonight`s "Profitable Moment." So, something`s come from the Doha Round. Well, not a great deal to be frank. The Bali agreement has been
finally agreed and passed. Now it has to actually come into force. And they hope that by next year, trade ministers will be able to agree more -
that`s at the end of July. Frankly I wouldn`t hold your breath. The whole Doha Round`s been a shambles from start to finish, and inability to get an
agreement merely shows that countries are rarely prepared to do trade deals unless their backs are against the wall, the clock`s running out and
they`ve really got no other choice. Which is why the temperature must be turned up - only then will the Doha Round make sense. And that`s "Quest
Means Business" for tonight. I`m Richard Quest. Whatever you`re up to in the hours ahead, (RINGS BELL) - hope it`s profitable.
(END QUEST SHOW)
END
