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Quest Means Business
Charlie Hebdo Cover Divides Media Industry; Dow Suffers Major Drop; European Markets Slide; Global Growth Fears; Bank Earnings; Oil Glut Expands; Samsung Discussed BlackBerry Takeover
Aired January 14, 2015 - 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: A dreadful day for the Dow, and this is only the market's second-worst day of the year. It's Wednesday, the 14th of
January.
Charlie Hebdo's defiant issues sells out in minutes. The head of Publicis tells us it would be an insult to those who died not to show the
cartoon.
Deeper into the red. Stock markets tumble after growth fears return.
And spending all day at work on Facebook. Contacting your colleagues is moving to social media.
I'm Maggie Lake, this is QUEST MEANS BUSINESS.
Good evening. Tonight, as millions of copies of Charlie Hebdos fly off the newsstand shelves, Maurice Levy tells CNN it would be seen as an
insult to the dead if French media did not republish the magazine's front cover.
Levy, the Publicis CEO and a key figure in the global media industry called for the French government to push for its own Patriot Act and expand
government powers to combat terrorism. The new "survivors' issue" of Charlie Hebdo depicts the Prophet Mohammed on its cover, something which
millions of Muslims around the world consider to be blasphemous.
The image is sparking questions about free speech and causing a divide between media outlets who've chosen to show it and those who haven't. CNN
senior international correspondent Jim Bittermann asked Maurice Levy if the magazine made the correct decision.
(BEGIN VIDEOTAPE)
MAURICE LEVY, CEO, PUBLICIS: First, I would like to say that the media on a global basis have done a terrific job on covering all the
aspects and being on top of the story has been tremendous and probably has been key for the march, which happened in France and in other countries.
Regarding the issue of showing or not showing the caricature on the front page, it's something which is a very difficult and ethical decision,
which belongs, obviously, to each publisher.
But from a French point of view, we should be free to show that. We should be free because since the separation of church and state, we are a
non-religious country. And religion has nothing to do with press, with education, and should not take part in the discussion and the decision of
the free press.
So therefore, from a French standpoint, it is -- it would have been a mistake not to do it. It would have been an insult to the dead people not
to show it.
From an American perspective, it's more debatable, because you are accepting what we call the communities, and each community is respected on
its own right. And obviously, you don't want to offend that community. So, we can understand. But we have a very different point of view.
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Here we have Turkey today saying that they were going to ban some Internet sites that
show the cover of Charlie Hebdo. What do you think of that?
LEVY: That is exactly the same thing which happened in Egypt, in some other countries, at what we call the Arab Spring, when they decided that
they will forbid SMS, use of Facebook, et cetera. I think it is a big mistake, because all the states who have been run by a strong hand on
freedom and limiting the freedom of the people have ended badly.
Look what happened with the Communist countries. They wanted to control the freedom of speech. We know where they are. And I don't
believe that this is a possibility. And anyway, people have the possibility of sharing information in way all over. They have access to a
lot of websites. So, it's a big mistake. In today's world, it is something which is unacceptable.
BITTERMANN: Do you think there'll be a debate in this country about civil rights, people's freedom to use the Internet, and restrictions the
government's talking about, where the government's talking about cracking down in a big way on the Internet?
LEVY: At the same time, we have to -- the government has rejected the idea of the Patriot Act, something which personally I would have valued and
I would have preferred that we go that route. Because we, the democracies of the world, are not equipped because of their values to fight against
terrorists who have no values or their specific values.
And we look at the way of dealing with terror in a very different way and incompatible with democracies. I think that we should have an arsenal
of laws which give some room to the police, the intelligence services, they should be able to track the communication, to tape and listen to what's
happening, to limit the use of Internet.
They should have some rights, because what is at stake is the very essence of our democracy. It is our way of living which is at stake. We
know that these people don't like what we do, don't like how we are living, they don't like the way we are respecting the woman.
They want something which is different. And they want to impose this on our democracies, and I don't believe that we should keep our cops of
laws and wait and let them doing what they want. So, I'm very much in favor of some constraints because there is no other way to fight against
terror.
(END VIDEOTAPE)
LAKE: CNN has made a deliberate decision not to show the cover of the latest issue of Charlie Hebdo. "Le Monde" and many other prominent French
publications immediately republished the image as a sign of solidarity with Charlie Hebdo.
"The Guardian" used it online and included a warning that the page contained material some might find offensive. "The Guardian's" parent
company has also donated $150,000 to help keep Charlie Hebdo publishing.
Fox News is showing it during its coverage, and the BBC used it once briefly during one program. CNN management cited safety concerns for our
journalists working around the world when they decided not to show the cartoon.
"The New York Times" linked it to an online article but said the, quote, "most incendiary images" weren't editorially necessary. The
Qatari-based Al Jazeera also declined to republish the image.
CNN's media correspondent Brian Stelter is in Paris and joins us now, live. And Brian, you heard Maurice just saying there this is a difficult
situation, difficult situation, and some of the issues that go into making that decision really vary depending on where you are in the world.
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Yes, you're right about that, Maggie. This is a very nuanced situation, and what some view
as cowardly decisions by news organizations that are not showing the cartoons, other view as very responsible decisions.
When I cover something like this for CNN, I approach it like I'm a reporter outside CNN looking in, and I've got to tell you, based on my
reporting about this, about CNN, this has been one of the hardest editorial decision-making processes that the news executives here have ever gone
through. This is a very tough series of decisions that have been made.
And that's why we're seeing varying outcomes, depending on what outlets. You mention Fox News in the US is showing the cartoons. You
mentioned a lot of French media here in Paris are showing the cartoons, but many, many other outlets are not, like "The New York Times" and the BBC.
And that is because it's a very close call, ethically and journalistically. But CNN and others are erring on the side of caution out
of those safety concerns you're describing and out of understandable desire to be sensitive to the feelings of some of the audience, in this case,
Muslim viewers, Muslim readers who are deeply offended in some cases by the cartoon, Maggie.
LAKE: And Brian, I'm glad you brought that up, because to be fully accountable for this, when we hear it's about the safety of journalists, we
have journalists in war zones all the time. We send into Syria, our journalists ask to go to those places --
STELTER: Absolutely, yes.
LAKE: -- to be able to do their job and fully report. I think sometimes when people hear that, they wonder if that's really what's going
on.
How much was that in the mix, and how much is it about depending on how large your readership is, your viewership is and how much of a
footprint you have in some of these countries where there is a very large Muslim population. How much did that sensitivity issue weigh up against
the security concerns?
STELTER: Well, that does make a difference. There are a handful of global news outlets, like CNN, the Associated Press, and the BBC, that do
have installed bureaus and staff in dozens of countries around the world.
And they have this sort of different criteria for this decision-making then, say, for example, a website that's based in the United States that
doesn't have a bunch of foreign bureaus. So, that is definitely part of the factor, one of the factors that weighs into this.
I have to tell you, Maggie, I'm -- I think it's notable that we're at the end of the day here in Paris, and we haven't seen any big protests
against the cover, we haven't seen any acts of violence. That might be an obvious thing to say, but I think it's worth saying out loud.
Because even though there are understandable concerns, and there have been a lot of complaints from leading Muslim groups about the cartoon
cover, there haven't actually been any acts of violence or anything like that to report today.
LAKE: That's right, it is worth pointing out that, I'm sure, to great relief to French authorities, who remain on guard still. Brian, the
reception in Paris, we heard Maurice Levy talking about the solidarity, they printed so many more copies, and yet, from what I understand, it's
almost impossible still --
STELTER: Yes.
LAKE: -- to find one. It sold out. And I think it's worth remember as well what it must have been like for this staff to get this issue out
with everything they're going through both emotionally and physically after what happened to their colleagues and friends last week.
STELTER: Yes, I would be holding one up on camera here. We won't show the front cover, but I would show you the rest of it if I could, but I
haven't been able to buy a copy yet today, Maggie. There are going to be more copies coming out tomorrow morning.
The distributor tells us they're printing a million a day, as many as they can, and they're going to come out one million per day, tomorrow,
Friday, Saturday, into the weekend, et cetera. We know that about 300 copies are going to the United States, 1500 copies to Canada, and other
countries as well. We're told that Germany is especially eager for copies. They keep asking for more and more copies.
Of course, these are parts of the world that never had even heard of the magazine before, and that speaks to the extraordinary moment this is.
But you're right, as we talk about this and as we talk about what is, frankly, a sudden commercial success for this magazine.
You have to remember, it comes under the most traumatic of times for the staff, under times none of them would have wished for. This is, of
course, something that some of the staffers actually worried about. Some of the staffers spoke in the past about understanding the risks and the
dangers that came from the provocation, the provocative sort of content they published.
But to know that this attack actually happened, to know that so many of them lost their lives, is heartbreaking, and I think the staff, now, is
going to be taking a much-deserved and much-needed break before working on the next issue of the magazine.
LAKE: That's right, which they say will come out, but they do admit there are a lot of questions about their future that are unknown at this
point. Brian Stelter for us tonight, live in Paris. Thank you so much, Brian.
STELTER: For sure.
LAKE: Well, concerns over global growth sent shockwaves through markets around the world Wednesday.
(COMMERCIAL BREAK)
LAKE: Markets around the world tumbled Wednesday. In the US, stocks fell sharply right out of the gate. The Dow was off more than 300 points
at one point during the trading day, though it pared those losses to close down nearly 187 points.
European markets also closed lower. As you can see, the FTSE 100 fell sharply, hurt by mining stocks and the falling price of copper.
There are multiple factors causing serious concern about global growth. A shocking drop in US retail sales has sparked worries about the
economy. December sales declined by the most in almost a year. Government bonds rallied as investors flocked to safe havens to escape some of this
volatility that we're seeing. US bond yields fell sharply.
Also, the World Bank cut growth forecasts, citing concerns about Europe, Japan, and some major emerging economies. It says the world cannot
rely on the US as the single engine of growth.
Diane Swonk is chief economist at Mesirow Financial, joins me now, live from Chicago. Diane, it's great to see you. I want to start with
this US retail sales number.
It seems to be not in keeping or not matching up with a lot of other things we thought were happening with the economy here, this improving
story, a better labor market, cheaper gas prices making us feel a little bit more flush. What's going on? Should we be as worried about the
economy as this number suggests?
DIANE SWONK, CHIEF ECONOMIST, MESIROW FINANCIAL: Well, when you get an outlier like this, and everything else is telling you things are going
in the other direction, you have to wonder about either the quality of the data or where are consumers spending, and I think both are certainly at
question now.
We do know that same-store sales were weak in December and November did pull some spending. We did have downward revisions to November as
well, although I have to say, we still had much better retail sales combined November and December than we did a year ago. So, they still were
up, they were still up strong. So, even with all this.
Also, the downdraft in gasoline prices, falling import prices, all that's really complicating this. We know that people aren't buying a lot
of clothes, but also, clothes are falling rapidly in price.
On the flip side of it, they were spending on discretionary spending, and we know much of the spending that they're spending on was probably not
showing up in retail sales, it was showing up in services.
Everything from leisure travel, we think was up in the month of December. People used that extra money that they got from falling prices
at the pump to spend on vacations that they couldn't do in the past. I think that's important, because that wouldn't show up.
Also, we did spend a lot more on health care. We not only had the Affordable Care Act kicking in, covering more people with insurance, we had
more people buying insurance in general because they're also employed now. And so, that would show up as stronger consumer spending, but in a
different place.
LAKE: Yes, those are excellent points, Diane. And maybe -- it sounds to me like we're getting a little bit smarter, maybe, us consumers. I'd
rather spend my money on a vacation than another sweater or something I don't need. But I do think --
SWONK: Exactly.
LAKE: -- we need to talk about this sort of global concern. Investors just seem to be -- the volatility we've seen is so extreme,
people seem confused by the rapid swings and that rapid fall in oil. What do you think is going on? There's -- everyone's taking risk off. Are we
facing another serious downdraft?
SWONK: I actually think -- there's this real irony. When oil prices were high, everyone said it was the end of the world, and now that they're
low, everyone says it's the end of the world.
And actually, we already saw in November retail sales in Europe boosted, and Europe's in a recession right now, because prices at the pump
fell. They actually got that benefit as well, and they're even more oil dependent than we are. They're more oil consuming nation -- group of
countries than we are.
And so, I think we're really sort of getting misdirected. There is worries -- I'm much more concerned about geopolitical risks by putting
Putin further in a corner and what kind of aggression that might mean if he invades a Baltic state which is part of the eurozone. You can talk about
NATO getting involved because of him feeling in a corner here.
That's where the concerns are for me on those geopolitical risks. Europe does have some major problems, but actually, I think the lower oil
prices and -- which is not as great for us, the stronger dollar, their weaker currency is helping them.
And I think that's very important to keep in context is, we're sort of over-reading the weakness in oil prices as suddenly it's some kind of a
leading indicator, and it's not been a good leading indicator. This is, in fact, one of the worst indicators as a lead.
LAKE: And we have the ECB, a lot of the buying that we saw in the few days that we've seen those spurts of buying is on the back of the fact that
they're going to provide more stimulus. At the same time, the Fed --
SWONK: A lot more.
LAKE: A lot more. And the Fed maybe -- I think there's concerns, can they do it and can they make that work, and what happens if they're
providing stimulus at the same time the Fed is considering moving in a different direction. Are central banks going to be a problem for us?
SWONK: That's where -- they're worried about the volatility. We're talking -- we think it's well over a trillion -- about a trillion and a
half that we're going to see in terms of quantitative easing by the ECB.
Draghi's been the emperor with no clothes, and he has to sort of fill his closet and look like he's got real clothes now, because we noticed the
fact that he didn't have any clothes. We can no longer turn a blind eye to this. And so, he actually has to act on quantitative easing.
That said, it is a different direction. I do think the Fed will get liftoff this year, but take the word "patience" in their statement very
seriously. They will be very slow on liftoff. In fact, we expect to end the year with the Fed funds rate 50 basis points. That's a very small half
percent increase in rates.
And I think what's important about all this is the Fed is worried that we've now got different kinds of monetary policy. We now have, instead of
coordinated policies, we've got competitive polices in the US and abroad, the US trying to liftoff on rates at the very time Japan and Europe are
trying to stimulate more and make monetary policy easier rather than not quite as easy.
LAKE: That's right. Well, these are certainly uncertain times. In those, there's always opportunity, Diane. We appreciate you helping us
sort through it and make some sense of it. Diane Swonk, always great to see you.
SWONK: You, too.
LAKE: Now, one of the issues that also weighing on the market today. JPMorgan Chase disappointed investors Wednesday, announcing revenue and
profit missed targets in the fourth quarter. It blamed increased legal costs. CEO Jamie Dimon said his bank is "under assault" from regulators.
Wells Fargo released earnings that hit expectations. Earnings were up from last year. Bank of America, CitiGroup, and Goldman Sachs will share
their earnings at the end of the week.
CNN Money digital correspondent Paul La Monica joins us now. He's been watching it all. Paul, Jamie Dimon was the star, the outperformer for
so long. It seems that we continue to be on this streak where every quarter, we're having a little bit of difficulty. What do you make of the
earnings and this idea that they're under assault?
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: It shows that Dimon is as feisty as always. He is very blunt, he is not afraid to say how he
feels. And that's admirable when a lot of CEOs are lapsing into corporate jargon, but I think saying that they're "under assault" might be a little
overly dramatic.
Yes, it is true that there are now a lot of regulatory agencies around the world, and I think he's complaining that his bank and many others have
so many different agencies that they have report to. There seems to be many sins that they've been paying for from the financial crisis, and then
other things keep cropping up.
The most recent one -- more than a billion-dollar legal charge in this quarter that weighed down profit, that's tied in large part to allegations
of foreign exchange manipulation.
LAKE: Right.
LA MONICA: JPMorgan Chase has already agreed to a settlement there. So, I think he's just concerned that when is this all going to end?
They're very, I guess, convenient whipping posts.
LAKE: Yes. I think investors are concerned about where it's going to end, too. I think they thought that this was temporary, and now there's
some suggestion that this is the new normal for banks, the governments trying to turn them into something other than money-printing machines,
although they still make billions of profits, and turn them into a business that looks a lot different.
Are they not going to be the sort of leadership for the stock market that they were? Or is it just a case the investment banks are going to
suffer, maybe other banks are going to do better?
LA MONICA: I think it's possible that all of the big banks with Wall Street ties are going to have to cut back a little bit on the trading that
they do, and that's probably something that's unsettling investors. They got used to viewing bank stocks as if they were they new sexy tech stocks
of 2006, 2007 and early 2008.
LAKE: Because they made that much money.
(CROSSTALK)
LA MONICA: Because they were making that much money.
LAKE: They were making as much money.
LA MONICA: Now, don't get me wrong, here. JPMorgan Chase still made almost $5 billion in the last quarter, so Dimon -- the cries of being under
assault, they don't exactly ring true. I think the concern going forward is, will they be forced to raise more capital that hurts profits? Will
there be more calls to break them up?
I think in a best-case scenario, they get regulated and they're more like predictable, boring utilities that pay dividends that are steady. And
it's kind of like the classing old "It's a Wonderful Life" type of bank.
LAKE: Yes.
LA MONICA: They're just going to be lending money, dependable, but not super growth engines.
LAKE: And to that we'll say we'll see, because we are facing a presidential election. We already have Republicans in Congress, and it
could be that the political winds shift that are a little bit more favorable to banks --
(CROSSTALK)
LA MONICA: Without question --
LAKE: -- as well.
LA MONICA: -- that is something to watch --
LAKE: -- before we get there. It's something to watch as well.
LA MONICA: -- over the next year and a half. Definitely.
LAKE: All right, Paul great to see you. Thanks, as always.
LA MONICA: Thank you.
LAKE: Well, more signs today that the oil glut keeps growing. US Energy Information Administration said crude inventories surged 5.4 million
barrels from the previous week. In fact, the EIA said that US crude inventories are at the highest level for this time of the year in at least
the last 80 years.
The global gut -- glut, rather -- has officials from around the world wondering whether $40-a-barrel oil may be on the horizon. John Defterios
spoke to the oil minister of the United Arab Emirates about a market overflowing with oil.
(BEGIN VIDEOTAPE)
SUHAIL AL MAZROUEI, UAE ENERGY MINISTER: Those who created this oversupply, they need to learn the lesson, as we mentioned, and adapt to
stabilizing the market. Because they are not small players anymore. Soon there will be only the shale oil to spoil the other production. In 2020,
there will be an 8 million barrels produced.
Alone, shale oil will be as big as Saudi Arabia. So, if they don't behave rationally as a group, and I know how difficult it is to make them
act rationally as a group, you cannot expect one country to do it.
It's not the fact that UAE want to maintain a certain share alone. It's the OPEC share that we want in the international market that we want
to protect. And that share by 2020 will be reduced naturally because it does not grow.
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: For the collective good of OPEC, is it the right decision, though, for countries like Iran and Iraq
and Algeria to go through this much pain in the near term?
MAZROUEI: If you reduce a million or 500, the glut today in the market is about 2 million. So even if you reduce, I'm sure someone will
take that advantage and produce it, and then you will be in the problem again.
So, that decision, if it was a reduction, I would be, if we took such a decision, I think we would be -- regretting today.
DEFTERIOS: I've listened to you very carefully here. The new normal sounds like $70 a barrel, where the UAE is comfortable at.
MAZROUEI: I told you. No one from this region can dictate and is interested to dictate that price anymore. Who is going to dictate the
price? Those highest-cost producers. They always need to be on the top.
It's going to the switching on and switching off of those shale oil producers. They will produce when it's economically viable for them to
produce, and they will shut off those wells when it does not make sense.
And that is going to be the stabilized price that you will see. And no one can tell you if it's $80 or $85 or $70 or whatever is that price.
We will produce always, as long as it makes sense for us to produce.
(END VIDEOTAPE)
LAKE: BlackBerry stocks surged after the close. I'll tell you why in a moment.
(COMMERCIAL BREAK)
LAKE: Reuters is reporting that Samsung made a takeover approach to BlackBerry, according sources. BlackBerry's shares surged on the rumor, up
nearly 30 percent. Samuel Burke joins me with more.
So, Samuel, the rumor mill has been going on for BlackBerry for a while, and I ask the same thing I ask every time this comes up: who would
want to buy them and why?
SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: Well, apparently Samsung. And don't forget, even though they have such small market share, just 0.5
percent of smartphones sold are BlackBerrys, so very little market share. But they have that incredible security system behind them, a lot of systems
to manage. Big corporations, their communications.
And don't forget, BlackBerry messenger, which has had a resurgence when they released the apps for Android and iOS. So, there is some value
there, and Reuters saying that Samsung approached them for $7.5 billion. That would be a stock price of between $13.35 a share or $15.49. Earlier
in the day, it was trading below $10 a share.
LAKE: That's real interesting. And neither -- we should point out, no one's confirming this yet. They have not commented. No comment from
Samsung. BlackBerry hasn't gotten back to you or vice-versa, correct?
BURKE: That's right. We contacted BlackBerry, they haven't responded to us yet, and Samsung said "no comment."
LAKE: So, I'm interested. Samsung was the only one -- it really set itself aside from the pack when it turned -- when it came to beating Apple.
It's kind of those two in this horse race, really, with the phone. Why would they -- I understand they have some properties. I don't understand,
really, what this does for Samsung except maybe getting the keyboard.
BURKE: No -- oh, come on!
LAKE: The keyboard.
BURKE: The keyboard?
LAKE: Everybody wants, still, a phone --
BURKE: No.
LAKE: -- and they have been blocking them in court. Everyone wants the old keyboard phones still.
BURKE: How can you say that, Maggie, when I just said they have 0.5 percent of market share? If everybody wanted --
(CROSSTALK)
LAKE: That's because they don't have apps. That's because they don't have apps, they don't have an ecosystem, and no one is supporting it
anymore and it's going by the wayside. But the people -- look around, there are people hanging onto it, including Richard Quest.
(LAUGHTER)
LAKE: In case you're watching, Richard.
BURKE: Well, if he were --
LAKE: Who will not give up their BlackBerry because they are -- they really are reluctant to give up the keyboard.
BURKE: And they represent 0.5 percent of the market. Yes, there are a small group of people out there --
LAKE: But it would be something that Samsung doesn't have.
BURKE: Yes, they might get --
LAKE: Because otherwise, aside from the IP, do we know what Samsung would be going after, what they'd be getting?
BURKE: I'll take your point in the fact that there are companies out there, one that Ryan Seacrest, the American entertainment host --
LAKE: Right.
BURKE: -- that is involved in.
(CROSSTALK)
LAKE: We should really talk to him --
BURKE: I've talked to him, we've interviewed that company, and they were trying to replicate a keyboard that looked rather similar to
BlackBerry. So much so that they were taken to court. So, yes, there is a small group out there that might be interested in a keyboard.
But lets' get back to these partnerships that Samsung just announced with BlackBerry back in November of 2014 --
LAKE: Right.
BURKE: -- over creating security systems. Don't --
LAKE: And the hacking is so prominent --
BURKE: Yes, exactly.
LAKE: -- right now.
BURKE: In the wake of Sony and so many other hacks -- Target, Home Depot, the list goes on -- there's a real premium for security. So, if
last year was the year of the messenger, like BlackBerry Messenger, WhatsApp -- I really think -- and we just saw this at the Consumer
Electronic Show in Las Vegas, there is a premium, now, for security.
Other companies are looking around, saying, should I acquire other companies that could help secure my systems?
LAKE: That's interesting.
BURKE: And BlackBerry has a long tradition of security, and they just announced this partnership with Samsung back in November to make more
secure systems, so --
LAKE: That's interesting. And let's remind everyone, Apple had a lot of success and buzz with the release of their latest phones, whereas
Samsung was disappointing toward the end of last year, so this is also maybe a way for them to sort of get a little bit of that mojo, a little bit
of that competition back.
BURKE: And I think a lot of people are nervous right now, because you're seen Xiaomi come out of nowhere --
LAKE: Right.
BURKE: -- in China. All of a sudden, it's the number one smartphone manufacturer in China, and you look around, all of a sudden, Samsung had
all this market share, and they've lost it. So they may be looking to see what they can do to try and firm up their ground.
LAKE: All right, watch this space. Samuel's going to be the story for us. Thanks, Samuel.
The cover of the new Charlie Hebdo issue is being heralded as a celebration of speech in France. We'll look at the reaction from the
Muslim world after the break.
(COMMERCIAL BREAK)
LAKE: Welcome back, I'm Maggie Lake. In the next half hour we'll hear from a survivor of the Charlie Hebdo attack about what he witnessed
and the plane which makes it possible to build more planes. We'll go inside the belly of the big Beluga. This is CNN and on this network the
news always comes first.
Some news just in to CNN - French security services have identified a fourth man suspected of involvement in last week's attack in Paris. That's
according to the French newspaper "Le Parisien." The newspaper said the man had been an accomplice of Amedy Coulibaly. Coulibaly is accused of
shooting four people during the siege at a kosher supermarket. And dramatic new pictures have surfaced from inside the grocery store.
Security cameras captured these images during the siege by Coulibaly who killed four shoppers and took others hostage. The grocery attack and the
siege on the offices of Charlie Hebdo left 17 people dead.
The new survivor's issue of "Charlie Hebdo" sold out in minutes. The magazine's run has been extended. There will now be 5 million copies
printed. The cover features a controversial cartoon depicting the Prophet Muhammad. Speaking to CNN, the chief executive of Publicis, one of the
world's biggest communication groups said it would be an insult to the dead if the cover was not published.
U.S. markets slid Wednesday. The Dow dropped sharply out of the gate following more than 300 points during the trading day impaired (ph) some of
those losses to close down nearly 187 points. A drop in U.S. retail sales worried investors. The World Bank also cut global growth forecasts.
The main body of the crashed AirAsia plane has been found. Officials say the fuselage was discovered around a kilometer from where the flight
recorders were found earlier this week. Divers will now search the fuselage where officials expect they will find the bodies of more than 100
passengers.
Let's get more on the news. Just in to CNN, French security services have identified a fourth man suspected of involvement in last week's
attacks in Paris - that's according to the French newspaper "Le Parisien." The newspaper said the man had been an accomplice of Amedy Coulibaly. Jim
Sciutto joins me now from Paris. And Jim, what do we know about this and where is this man at current?
JIM SCIUTTO, CHIEF NATIONAL SECURITY CORRESPONDENT: Well they don't know where he is. Part of the way they found their way to him is they went
to search Amedy Coulibaly's apartment. In that apartment they found a set of keys to a scooter, a moped - that moped registered to this other man and
that's how they found the identity.
The question now is what was his involvement in this plot? Was he an association? Did he support the plot in any other way than being connected
to Amedy Coulibaly? Those are open questions and of course his whereabouts. Yet another person with potential involvement in this case
that the police are seeking out. Of course the other Amedy Coulibaly's partner who continued on to Turkey and then it's believed into Syria where
in effect today you basically disappear. So at least they have names at this point but they don't have locations.
LAKE: This has got a - this is a city that although they got through today without an event which I'm sure relieved many, it's still on high
alert. There are still a lot of concerns. The fact that there is now sour suspects, they don't know the location - how is this going to affect things
on the ground there? What's going to happen next? We heard President Hollande today talking about perhaps having to think (ph) the military.
This is a country that is still in many ways in flux.
SCIUTTO: It leaves a lingering question are there others who are involved in this plot who still pose a risk. That's been a burning
question since the attacks took place last week, and an open question. There are now names of others involved but the police don't know where they
are. Also in question is whether they're still in this country. We know that President Hollande today discussed the possibility of extending this
massive deployment you have right now. Police and the army security forces - the initial plan had been to wind that down a bit slowly in the coming
days. They're now reconsidering that in light of the threat.
It's a country that's on alert. But you know, Maggie, I keep reminding folks back in the States despite that fact, you still see the
streets crowded, the restaurants quite crowded, people going to work. We saw long lines today certainly at newsstands selling the latest edition of
"Charlie Hebdo." So despite the threat, I think, admirably, you can say the French people continuing the best they can to live their lives.
LAKE: Absolutely. We've used the word defiant in many days recently, Jim, and it certainly seems appropriate. Jim Sciutto for us tonight live
from Paris. Well many news organizations worldwide are choosing to show the new "Charlie Hebdo" cover in Turkey. A court has banned websites from
showing it in Istanbul. Armored police blocked off traffic around one paper that showed two small images of the Mohammad cartoon. The paper says
police stopped trucks from carrying the paper away from the printing press. The Turkish deputy prime minister used Twitter to call the cartoons a
provocation. He said, "Those who are publishing figures referring to our supreme Prophet are those who disregard the sacred."
Many French Muslims are upset about the magazine's new cover, viewing it as an assault on their religion. CNN's Arwa Damon brings us that part
of the story.
(BEGIN VIDEOCLIP)
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: There were 125 copies of "Charlie Hebdo" available here sold out by 7 a.m. Despite that,
the vast majority of Muslims that we have been speaking to say that they feel upset and disappointed at the use of the image of the Prophet once
again. They continue to find it very offensive, no matter what the message behind it was.
Male, INTERPRETED BY DAMON: He's saying that it's a provocation again to continuously be using the image of the Prophet and that has really been
- that has really been the theme, the underlying current that we've been hearing from a lot of people that we have been speaking to here.
Female, INTERPRETED BY DAMON: It hurts their heart. She's saying it hurts her heart to see the Prophet being used in that way. Any prophet it
would upset her to see used in that way.
DAMON: One young man who we did speak to did tell us that he is "Charlie" and that people need to get a bit of a sense of humor about the
use and the depictions of the Prophet. Unfortunately, the vast majority of the people here are not able and are not willing to do that. They continue
to view this as being a direct assault on their religion, on their belief and a direct attempt to perhaps further increase the tensions for the
Muslim population here. Arwa Damon, CNN Paris.
(END VIDEOCLIP)
LAKE: One week on from the attacks, the pain is still very real in France. Jeremy Ganz is a maintenance man who was at the "Charlie Hebdo"
office when it was attacked. Ganz survived but his friend and colleague Frederic Boisseau died in his arms. CNN's Jim Bittermann spoke to Ganz and
the victim's brother.
(BEGIN VIDEOCLIP)
JIM BITTERMANN, CNN'S SENIOR EUROPEAN CORRESPONDENT BASED IN PARIS: Much has been heard about the cartoonists and police who were among the
victims, but little about the first person the terrorists killed - a maintenance technician named Frederic Boisseau. He and his partner Jeremy
Ganz were looking over the "Charlie Hebdo" building for the first time at the start of a maintenance contract - the first to come face-to-face with
the killers. A week later, Boisseau's brother Christophe and Ganz have begun telling their story.
JEREMY GANZ, CO-WORKER OF FREDERIC BOISSEAU: We only had time to lift our heads up, someone shouted "Charlie?" He fired. I only had time to
scream, "We're maintenance!" But he had already fired and he aimed at me. "Where is "Charlie Hebdo"?" and I said "I don't know. We are maintenance
men, it's our first day" while trying to protect myself as if I were about to get clubbed -- it was a reflex. And then Fredo cried, "Jeremy, I'm hit,
call Catherine!" That's his wife. And then I threw myself on him, more or less, to protect him, I put pressure on his wound, I lifted his head, I put
him on his side, and when I turned around I saw them coming back. They aimed at me again and then they entered the other side of the building and
I thought, "They're going to finish us." Is I pulled Fredo with all my strength. I dragged him into the toilet and locked us in. I put him on
the ground. I laid down next to him and I locked the toilet and I heard heavy firing and I said to myself, "They mustn't finish us."
BITTERMANN: And were you frightened?
GANZ: Yes, I was scared at the time that they would finish us, that they would return and fire at us again, that they would follow the blood
smears and finish us. I didn't know what was going on, we didn't understand, Fredo and I, we didn't know there was "Charlie Hebdo" in the
building.
BITTERMANN: You had a good view of the gunman?
GANZ: I looked at him straight in the eyes. I'll never forget it, as if I had taken a photo of him with the gun still smoking from firing the
shot. He only shot one bullet.
BITTERMANN: What feelings do you have toward the gunmen?
GANZ: Anger will not bring Fredo back. It won't bring him back or bring back the others. It's hate that killed 17 people. It's hate.
CHRISTOPHE BOISSEAU, BROTHER OF FREDERIC BOISSEAU: In any case, he didn't have any hate. My brother was not a hateful person, regardless of
what others did. He didn't have any hate. He would never have been angry. He would have said, "It's crazy that's it, they're crazy."
BITTERMANN: Jeremy, you called his wife?
GANZ: I called Catherine as soon as I saw the firemen around him because I was sure they could save him. The guys weren't able to. I saw
that they were overwhelmed by what was happening around them. I don't think that when you're a fireman in Paris you expect to go and treat war
wounds. It's a combat bullet that killed Fredo and I was waiting for help from the emergency services in the toilets with Fredo. He even asked me,
"The emergency services?" I replied: They're coming, Fredo, they're coming," and it's true. I was relieved when I saw them because I thought
to myself "at last," and when they surrounded Fredo, those three firemen, that's when I called Catherine to tell her, to tell her what had happened.
I knew he was unconscious but I thought they would revive him, like in the movies. You see movies with medical gear. I thought they were going to
save him like they do in the movies.
BITTERMANN: Unfortunately not.
GANZ: Nope.
BITTERMANN: Jim Bittermann, CNN Paris.
(END VIDEOCLIP)
LAKE: And we'll be right back in a moment.
(COMMERCIAL BREAK)
LAKE: Time for today's "Business Traveller" update. Thursday will see the first commercial flight of the new Airbus A350. Qatar Airways will
introduce the plane on its Frankfurt to Doha route. One of the features of the new plane is an extra wide body which should make passengers more
comfortable. And to build an extra wide body, you need an extra, extra wide plane to carry all those parts of course. It's time to meet the
Beluga - the Airbus cargo plane. Rosie Tomkins reports from Toulouse.
(BEGIN VIDEOCLIP)
ROSIE TOMKINS, CORRESPONDENT AND SENIOR PRODUCER FOR CNN: The workhorse of the skies with the silhouette of a whale. It is the Beluga's
unique and really quite endearing shape that enables it to perform its unique role - ferrying huge and bulky aircraft parts between Airbus'
European production hubs. It's actually quite hard to get a sense of the scale of these aircraft when you simply look at the exterior of one. But
if you follow me, when you see the mouth of one open and then you see parts of another aircraft being dragged from the belly of the Beluga - in this
case two wings of an A320 - that's when you really get a sense of the incredible volume these aircraft can carry.
One thousand four hundred cubic meters to be precise. That's equivalent to around seven elephants, making it the largest cargo carrier
in the world. So here we are.
STEPHANE GOSSELIN, HEAD OF AIRBUS TRANSPORT INTERNATIONAL: Here we are in the beast. We can carry most of the existing main component
assembly of the Airbus aircraft except for the 380 which is wider than the Beluga.
TOMKINS: The busy fleet of just five aircraft performs more than 65 flights every week, delivering Airbus component parts. Since the Beluga's
maiden flight in 1994, Airbus production has exploded to five times the number. So after decades, plans for a new fleet are underway.
The original Beluga fleet was based on the old A300 aircraft and they modified it to create the extra space. As you can see here, they dropped
the cockpit to the bottom front face of the plane. Now 20 years later of course the A300 no longer exists. So when it comes to designing the next
generation fleet, Airbus will have to take as its basis an entirely different aircraft.
GOSSELIN: The new Beluga will be based on a 330 platform, will be bigger in size so capable to carry more load and more volume.
TOMKINS: Now there's great affection for the way the Beluga looks - the way the nose and the hump look like the beluga whale. Will the new
design still retain that look about it?
GOSSELIN: Exactly. It will be the same look.
TOMKINS: The first of the new fleet is expected to enter service in 2020. In the meantime, the existing aircraft will continue to carry the
load - working like a horse with the grace of a whale. Rosie Tomkins, CNN Toulouse.
(END VIDEOCLIP)
LAKE: And we will be back in just a moment.
(COMMERCIAL BREAK)
LAKE: Searchers in the Java Sea have found the main section of AirAsia flight 8501. An underwater vehicle took these pictures of a 30-
meter long piece of the fuselage. It was found less than a kilometer away from cockpit voice and flight data recorders. Officials believe many of
the remaining bodies are still inside. CNN's David Molko has the latest from Jakarta where officials are now analyzing the data from both of the
plane's black boxes.
(BEGIN VIDEOCLIP)
DAVID MOLKO, CNN CORRESPONDENT: The discovery of the fuselage from flight 8501 on the floor of the Java Sea here - a major breakthrough on day
18 of the search and recovery efforts. The pictures though, a sobering reality of the fuselage in its final resting place, and that is because the
bodies of more than 100 passengers and crew are believed to be inside. The AirAsia slogan "Now Everybody Can Fly" - part of that clearly readable
along the side, also a wing attached to that fuselage section. The plan now according to search and rescue officials to send divers down at first
light if the weather conditions permit - and that's a big if. The weather here has been governing the pace of this search for the past couple of
weeks. Divers will begin to pull out bodies - a very grim task - but a necessary one for the families who continue to wait for news of their loved
ones.
Here in Jakarta the investigation continues with the black boxes -- the flight data recorder and cockpit voice recorder we're told by
investigators, both in excellent condition. In fact, the audio from the cockpit voice recorder already downloaded with investigators listening to
it - listening to conversation between the crew that requested change of altitude and turned because of a storm - and beginning to piece together
what may have happened in the moments before and after. In the words of one investigator, "the flight data recorder will tell us what happened, the
cockpit voice recorder will help explain why." Investigators say their overall goal here is not only to find out what happened onboard that flight
but be able to move that forward and ensure that a tragedy like this doesn't happen again. David Molko, CNN Jakarta, Indonesia.
(END VIDEOCLIP)
LAKE: "Quest Means Business" will be right back after this break.
(COMMERCIAL BREAK)
LAKE: A week after many of their colleagues were gunned down, the staff of "Charlie Hebdo" managed to do what might have once seemed
impossible. They put out the biggest-selling issue of the satirical magazine ever. In Paris it flew off the shelves. People said they wanted
a piece of history and needed to support freedom of expression.
(BEGIN VIDEOCLIP)
Male, VIA INTERPRETER: It's no question of controversy, it's a tribute to those who do this job and make it the means of expression and
freedom of thought.
Male 2: It's nothing aggressive, it's nothing annoying even for all my Muslim friends say they love "Charlie Hebdo." For most of them it's a -
it's just the only magazine who makes you laugh when everything is tragic.
Female, VIA INTERPRETER: I have the impression it's a demonstration. I think I have never seen this many people in front of my newsstand.
(END VIDEOCLIP)
LAKE: The magazine's typical weekly circulation is around 60,000. Now millions of French men and women are buying it. Speaking to this
program, the chief executive of Publicis said it would be an insult to the dead if the cover was not published.
(BEGIN VIDEOCLIP)
MAURICE LEVY, CEO, PUBLICIS: From a French point of view, we should be free to show that. We should be free because since the separation of
church and state, we are a non-religious country, and religion has nothing to do with press, with education and should not take part in the discussion
and the decision of the free press.
(END VIDEOCLIP)
LAKE: And on eBay, there is a brisk business in selling copies of today's "Charlie Hebdo." Some people were charging $700 and that caused
speculators to push prices up even higher. In fact, one copy was actually listed for $17,700. And that is "Quest Means Business." I'm Maggie Lake.
Thanks so much for watching "Quest Means Business." I'll see you tomorrow.
END
