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Quest Means Business
Greece Outlines Budget Reforms; HSBC Profit Down 17 Percent in 2014; HSBC Faces Tax Avoidance Scandals; European Markets Close Higher; US Markets Mostly Lower; Terror Group Threatens Shopping Malls; Oil Prices Fall Again
Aired February 23, 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)
RICHARD QUEST, HOST: Closing bell is ringing on Wall Street. No records for the Dow or the broader market as trading comes to a close. The
man hits the gavel when the bell stops ringing on Monday, it's February the 23rd.
Tonight, the Greek finance minister lays out his blueprint of the reforms and calls it a fresh start for Greece.
Stashing cash where it can't be traced. The chief of HSBC runs into a new tax scandal.
And leading ladies unite. Actresses fight back against Hollywood sexism in an Oscar that was absolutely full of good causes.
I'm Richard Quest. We start a new week together, and I mean business.
Good evening. Today was the day that Greece was supposed to reveal its list of reforms and present them to the eurozone group. And now Greece
is trying to please two entirely different audiences as it lays out its road map for change.
A short time ago, the finance minister said the government had delivered its proposals to creditors. It had been delivered according to
Varoufakis, who called it a comprehensive program and said it would tackle tax evasion, corruption, and what he described as the humanitarian crisis
in Greece.
Now, he's playing down reports of dissent from within his party. Some lawmakers have accused the prime minister, Alexis Tsipras, and the finance
minister of making a U-turn on their campaign promise to end austerity and at the same time --
(RINGS BELL)
QUEST: -- reforms must please the creditors. It must keep Greece from bankruptcy. Now, without a green light from the creditors, the
agreement or the tentative agreement won't happen at all. Mr. Varoufakis spoke to Christiane Amanpour a short time ago, when he said the reform
program was an opportunity for Greece -- and maybe the eurozone -- for the fresh start.
(BEGIN VIDEOTAPE)
YANIS VAROUFAKIS, GREEK FINANCE MINISTER: The reforms that we have tabled concern corruption, tax evasion, and even worse problem, tax
immunity, which concerns the well-to-do in this country.
It -- there are provisions for dealing with the non-performing loans of the banking system, which are preventing the credit circuits from
functioning properly. There is a very important chapter on the humanitarian crisis that has emerged as a result of the failure of the
policies of the last five years.
There is provision for restructuring the mass media, which I think you would be interested in, and the way in which they are, unfortunately,
interwoven with what we call the triangle of sin. Procurement, a number of areas in which there is corruption.
It's a very comprehensive list of reforms that this government is intent on. Regarding austerity, this package is not so much geared towards
dealing with questions of fiscal policy, but I can assure you that as part of this deliberation process, are partners have agreed that the fiscal
targets for this year, which would be equivalent to even harsher austerity than what we had the last five years, these have been waived.
And we are beginning a very interesting conversation about debt restructuring as well as primary surpluses. In other words, the level of
austerity for the next few years. So, this is a fresh start, both for us and for our partners. And this is no spin.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Your people are -- elected you precisely to get rid of austerity. You will
continue to have to belt-tighten, and there is also already resistance amongst your party.
Even the German finance minister has asked how will you sell this to the very electorate who put you into power to get rid of all this as you
pledged to do. How are you going to make them believe now this is OK?
VAROUFAKIS: We're doing it, and we're doing it very effectively. We have managed for the next four months, which is the duration of this
interim period that we have agreed upon, there will be no pension cuts, there will be no increases in Value Added Tax, unlike the previous
government's commitments. There will be a series of poverty alleviation moves.
And the most important thing, we are turning a page, as I was saying before, whereby now we -- the Greek government, the Greek people, are going
to become the coauthors of the program, of the contract with Europe, as I'd like to call it, that will shape the next few years.
I can assure you, the people on the street are elated by this return to dignity of a people -- the Greek people -- who for five years have been
treated as a debt colony and have been subjected to an autopilot of austerity and reforms that were never attacking the serious sources of
corruption and tax evasion and the various malignancies of the Greek economy.
(END VIDEOTAPE)
QUEST: So, the proposals, those reform proposals which, as the minister was saying, have now been sent to Brussels -- whether it's a few
hours late, seems to be at the request of Brussels themselves.
Joining me now is Stephanie Flanders, the chief market strategist for JPMorgan Asset Management. I'm lost. I need your help
(LAUGHTER)
QUEST: I mean, what -- where do we stand with this?
STEPHANIE FLANDERS, CHIEF MARKET STRATEGIST, JPMORGAN ASSET MANAGEMENT: I think it's one of those things -- we've looked at this
crisis over the last few years at different moments with Greece and other parts of the eurozone, and we've always said, can governments act fast
enough for the markets, because the markets are always so tough and always waiting?
In fact, I think those investors and others in the markets have been really tolerant with an awful lot of uncertainty at every step in this
process, and we have another example of that tonight, where we don't really know what the tentative deal is that the Greeks may have done.
And yet with -- and we know that there's a lot more steps on the road before they actually get any money to fill their financing gap. And yet,
the markets are fairly calm and we're sort of --
QUEST: Why?
FLANDERS: -- to hear.
QUEST: Why?
FLANDERS: I think we've just decided that it's all going to be all right. It's like that line in the film about -- there's a recent film
where it says that we know that this can't be the end, because we know everything's all right in the end, so if things aren't all right, it can't
be the end.
QUEST: Did the Greek -- I hate to ask you this, but I'm going to anyway. Did they back down? Did they do a massive U-turn?
FLANDERS: I think relative to what they've said, they've signed up to an awful lot more of the program, it seems, than they would have said when
they'd just been elected. So, I think in that sense, we've seen Syriza step back a bit. And I think that raises a question mark about whether the
plans that they eventually agree with the eurogroup actually get through the Greek parliament.
But I think the Germans have given them a bit of leeway as well. The others -- the creditors have said they can have a bit more space in terms
of their budget for this year. So, I think there's been a bit of give on both sides. But the truth is, we've got a lot more of this process to go.
QUEST: Four months --
FLANDERS: It's not finished.
QUEST: -- of negotiations before we get to a payout on the existing agreement or review, and possibly more. But what reforms are you looking
for? Because on this program last week, Josef Ackermann basically said that over the last six years, Greece had done nothing like the reforms that
were necessary or that it should have done.
FLANDERS: The problem with that is the Troika, the people who are negotiating this deal, also have some responsibility for that. When they
came in, you talked to the IMF mission chief, who went in 2010, he was popular in Greece because he talked about rich people needing to pay taxes
and clamping down on corruption.
If anyone's to blame -- there's a lot of responsibility to go around. If there hadn't been those reforms as part of this emergency program, it's
not just down to the Greeks. It's also down to the people who allowed them to meet these targets in a way that still kept the old system afloat.
QUEST: But now it's crunch time. Now, here's the problem. He's got to come up -- Mr. Varoufakis has to come up with reforms, but they can't be
so drastic of reforms, which some would say, maybe you would agree, are necessary in Greece, because that would be full-scale -- there would be
worsening the austerity. What does he do?
FLANDERS: It depends what the reforms are.
QUEST: Yes.
FLANDERS: Because you can actually have quite a lot of common ground on these sort of anti-corruption initiatives, things that actually a party
like Syriza might find a bit easier than the old established parties in Greece.
But you're right, some of these things around support for pensioners or the ability to sack public sector workers, those are going to be very
tricky areas. The real problem, Richard, is we don't actually know how they're going to fill their financing gap in the next couple of months.
They need a lot of money, which they're not going to get, even on the most optimistic timetable.
QUEST: The fascinating part about seeing you here this evening, besides that we're both in the same studio at the same time, is you're so
relaxed about it all. I mean, here is Greece, that nearly took the whole thing over the edge X number of years ago, created the biggest existential
crisis even recently, and you're quite relaxed about it.
FLANDERS: Well, I think I'm sort of commenting. I'm surprised -- almost as surprised as you in the sense that I think that the finance
markets have been remarkably calm throughout this process.
But I think one proper reason for that is that the amount of exposure of the European banking system to Greece is much lower now than it was a
few years ago. It's taxpayers that are exposed to Greece now, not the banks.
QUEST: Right.
FLANDERS: So, we're less worried about it from that standpoint. I think possibly there is a bit of -- because we know that they will do
everything the can to stay in the euro, and the Troika will help them stay in, I think it's that reality as well, that people just think there's still
a relatively slim chance of Greece leaving. And if Greece doesn't leave, the rest of the euro system should be OK.
QUEST: Good to see you, thank you.
FLANDERS: Thank you.
QUEST: Thank you very much, indeed.
Now, this is an extraordinary story. It's going to take you from the United Kingdom to Hong Kong to Switzerland and to Panama. And it'll trace
the travels of Gulliver's millions. In this case, it's HSBC chief Stuart Gulliver, and it's his millions, and it's in all those places. And we'll
talk about it after the break.
(RINGS BELL)
(COMMERCIAL BREAK)
QUEST: There was a sharp drop in profits and a storm of criticism over tax avoidance, and it's all adding to a sense of crisis. It's at one
of the world's biggest banks, it's HSBC. Now, Europe's largest bank says net profit was down 17 percent last year. Why should it go down so
dramatically, 17 percent? Mostly because of huge fines and compensation for past misconduct.
Well, you want an example? $1.2 billion to settle accusations that they'd rigged currency rates. Then of course, there was the whole business
in Mexico a couple of years ago, and HSBC is still facing a string of lawsuits over other claims.
So, that's the results that we got from the bank today. And this is the result of what we saw. Shares were driven down by more than 4.5
percent in the London market. But the issue of the moment is not just bad profits, falling share price, it's the underlying reason, and it's all to
do with a tax scandal.
Chief executive Stuart Gulliver told analysts that there's a mood of shame, a source of shame, in senior circles at the bank. And he's talking
about recent revelations that HSBC had actively helped rich clients avoid paying their proper share of tax. And they'd done it through putting
deposits in Switzerland.
That would be bad enough for any bank. Now, Gulliver himself is caught up in the scandal around his own finances. He's admitted he had
stashed millions of dollars in a Swiss bank account. So, not only does it appear that HSBC was helping its rich clients keep the money away from the
tax man, it also seems like they were helping the chief executive keep his money out of the public gaze.
Britain's finance minister, the chancellor of the exchequer, was asked about HSBC and taxes in parliament, and George Osborne said eliminating tax
evasion is a government priority.
(BEGIN VIDEO CLIP)
GEORGE OSBORNE, UK CHANCELLOR OF THE EXCHEQUER: Under this government, tax evasion is at the top of the G8 agenda. We've collected
more money and prosecutions have increased five times over. Ahead of the budget, I set the Treasury to work on providing further ways to pursue not
just the tax evaders, but those providing them with advice.
Anyone involved in tax evasion, whatever your role, this government is coming after you. And unlike the last government, who simply turned a
blind eye, this government is taking action now, and will do so again in the budget. So, I am happy anytime to answer for our record in tackling
tax evasion.
(END VIDEO CLIP)
QUEST: So, we need to look at Gulliver's money travels and the Lilliputians that held Gulliver down.
(LAUGHTER)
QUEST: And Jim Boulden --
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: Of course.
QUEST: -- is here. Jim, where has his money been, and where is it going?
BOULDEN: OK. Well, this is when he was a junior executive at HSBC, not a CEO, in the 90s. And so, not unlike the title character from Jonathan
Swift's 18th century novel, "Gulliver's Travels," HSBC's CEO, Stuart Gulliver, finds himself tied down in a series of tax scandals from which he
can't seem to escape.
Well, Gulliver admitted to tucking away over $7.5 million in bonuses in an offshore account while he was working for HSBC in Hong Kong. And to
keep that money confidential, it was kept in a Swiss bank account belonging to a company registered in Panama.
Now, HSBC says full tax was paid on the bonuses and the account was only set up to keep Gulliver's compensation private from other bank
employees. Now, Gulliver was forced to defend his own conduct on the same day, today, that he admitted other banks and other involvement in tax
evasion and he says it is a source of shame.
QUEST: A source of shame, indeed. The money just keeps going round and round. You're saying here Gulliver's money travels, he had this
account, it's in Switzerland. There's a Panama account.
BOULDEN: Yes.
QUEST: And it's all to keep it private.
BOULDEN: He talked on the conference call this morning. He was very clear about this. When he was at HSBC in Hong Kong, everybody -- every
employee could have access to every bank account, because that's how old the system was, the computer.
So, he was the highest-paid employee, he said, at the time, and he knew other people would look to see how much money he made. So, he put it
in Switzerland.
Then he said anybody who could work at HSBC in Switzerland could see that bank account, so then he stuck it in Panama so that nobody else would
know how much money he'd made, because he said they didn't need to be transparent then because he wasn't the CEO.
Now, of course, he's very transparent, and he said he's actually lost -- what? -- $1.75 million in compensation bonuses because of the recent
scandals. So, he says he is getting bonuses called back as well.
QUEST: Jim Boulden, and that is the Gulliver's money travels. Thank you, Jim. Good to see you.
BOULDEN: Yes.
QUEST: European stock markets, they closed mostly higher. Take a look at the numbers. The FTSE, it was mainly fat. Flat.
(LAUGHTER)
QUEST: Fat or flat. Greek markets were closed, that's the way the trading went there. I was going to say one down, three up.
We'll look at the markets in the US. Alison Kosik is at CNN in New York. No -- no records on the narrow or the broader. What happened?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Modest losses. The focus, Richard, shifting away from Greece and squarely on interest rates,
specifically on what the Fed is going to do.
And the reason this newfound focus on the Fed is because you saw investors today really thinking back to those minutes from January's
meeting, that they heard from on last week, showing a bit of a mixed message from the Fed. Not really sure if they're going to tighten early or
tighten later.
There was also, if you remember in those minutes, some discussion on whether the word "patient" was going to be removed and concern on what
effect that would have on the markets.
So, what's going to happen next? Tuesday and Wednesday, Fed chief Janet Yellen testifying before the House and the Senate. Investors,
Richard, are going to be listening very closely for some clarity. Richard?
QUEST: That "patient" word, the numbers are getting to the point where rates are going up.
KOSIK: Right.
QUEST: And it really is only a question of when.
KOSIK: I agree with you. And I think many investors think that, too. But they are still going to be listening closely, they want to have some
clarity where the Fed's concerned.
QUEST: Alison Kosik in New York. Thank you. Don't touch the bell. You can't. I've got it with me here in London.
When we come back after the break, there's a very nasty threat against the shopping malls in the United States, the United Kingdom, and in Canada.
How serious is this threat, and how seriously should it be taken? We'll be talking after this.
(COMMERCIAL BREAK)
QUEST: Security officials in the United States, the United Kingdom, and Canada, are now responding to a video threatening shopping malls
allegedly posted by a terror group, al-Shabaab. Now, on the tape, a man speaking in English calls on the group's followers to stage attacks on
shoppers.
Al-Shabaab, of course, you will recall, murdered 67 people in a shopping center in Nairobi in 2013. In London, the Westfield Group, which
has two huge malls, says there's no evidence of an imminent threat. West Edmonton Mall in Alberta in Canada says extra security is in place. And
again, the police say there is no imminent threat.
Meanwhile, the Mall of American in Minnesota is one of the biggest in the country. Extra security has been introduced. Some measures are
visible. Many, of course, are not. And the secretary of Homeland Security in the United States said, obviously, it would be absolutely foolish if
they didn't take such an attack or such a potential attack, such a threat, with the utmost of seriousness.
Brian Todd is outside the Mall of American in Minnesota and joins me now. It's a very tricky balancing act between taking such a threat
correctly seriously, but not creating panic. How are they doing in balancing that?
BRIAN TODD, CNN CORRESPONDENT: Richard, so far, they seem to be doing that pretty well. People here are a little bit alerted by this, as some
customers that we have talked to and seen inside the mall say they are concerned, they are a little bit scared.
But others say, look, if this is going to happen, it's going to happen, I'm going to come here no matter what, and I'm not really scared.
They're not concerned. They trust the security measures here.
You mentioned the stepped-up security. Some of it, as you said, visible. Some of it not visible. We got a behind-the-scenes tour not long
ago. We saw some canine bomb explosive teams being shepherded around, and they're patrolling around. That's some of the measures that are being
seen.
But there's a lot that you cannot see behind the scenes. There are plainclothes officers roaming around this mall. They have surveillance
cameras, hundreds of them, all over the place. They even have their own intelligence branch inside this bureau -- inside this mall, Richard, that
monitors, of course, surveillance, but also monitors social media chatter.
So, it's a very sophisticated security operation. We're also told that they have behavior profiling units, people trained to look at strange
behavior, people walking around maybe just showing signs that maybe something is amiss in their behavior, taking pictures of things that maybe
they shouldn't be taking pictures of. They have teams trained just to monitor that. So, all of that is unseen.
But the mood here is a little bit mixed. They know that there's heightened security. There was a lockdown drill here earlier today, so
it's clearly visible. But it does not seem to deter people from coming to this mall, Richard.
QUEST: Brian, you obviously are one of our experts in terrorism, in security. So, when we take, for instance, the events of Paris and Charlie
Hebdo, and then we put on top of it the events of Copenhagen just a week or so ago. And now you put on top of that the threats to the shopping malls.
Is it the feeling of the US terrorism authorities that they've got a handle on this? That they've actually got it locked down, or not?
TODD: You know, Richard, it's hard to say that they think that they have it locked down, because they say that that is one of their chief
concerns. It is that lone wolf, someone who they don't have on their radar.
Someone who has never done anything wrong before, who has not gotten an arrest record, but who may find himself sympathizing with ISIS,
sympathizing with al-Shabaab, reading their social media, looking at these videos, and then just deciding for himself, yes, I'm inspired by this, I
want to go do something.
That is the hardest type of terrorist to detect. US officials, counterterror officials, are constantly telling us that's their biggest
worry. And as you know, Richard, here in the Somali community in Minneapolis, that concern is heightened, because al-Shabaab has recruited
about two dozen young Somali-Americans from this area to go fight with al- Shabaab in Somalia.
ISIS has now started to recruit young Somalis from this area. And now the concern is that maybe a young man or woman who cannot get over to Syria
to fight with ISIS may be come inspired by them and just want to walk into this mall and do something, and counterterrorism officials, Richard, say
that's the hardest type of terrorist to detect.
QUEST: Absolutely. That's the one that you can't predict. All right, Brian, thank you. Thank you for that, Brian Todd, excellent
reporting in Minnesota.
Kazakhstan has taken a financial hit as oil prices have fallen and as Russia's economy catches a cold. The Kazakhstan prime minister will be
with me here in a moment.
(COMMERCIAL BREAK)
QUEST: Hello, I'm Richard Quest. There's more QUEST MEANS BUSINESS in a moment, when we talk about oil prices taking another wild swing, and
I'm joined live by the prime minister of Kazakhstan to see how all these matters are affecting his growing economy.
And while "Birdman" ruled the Oscars, Hollywood's women ruled the headlines. There are calls for equal pay and all sorts of social issues
were on the agenda. Before we get to any of it, this is CNN, and on this network, the news always comes first.
For the first time, French authorities have confiscated the passports of six people they believe were planning to travel to Syria and Iraq. The
French Interior Ministry says they intended to join jihadists and would have presented a greater threat to France upon their return.
A US court has ordered the Palestinian Liberation Organization and the Palestinian Authority to pay around $218 million to the families of
terrorism victims. The court said they provided support for several attacks more than a decade ago, including this bombing at the Hebrew
University in 2002 that killed several people.
The Greek government says it has sent its reform plans to its creditors. The finance minister tells CNN the government will tackle tax
evasion, corruption, and what he called the humanitarian crisis in Greece. And the minister played down accusations it's a U-turn on his party's
campaign promise to end austerity policies.
Police in the United States, Canada, and the United Kingdom say they're closely monitoring a terror threat. Al-Shabaab is calling for
attacks on prominent shopping malls in those countries. US officials say they don't believe there's an immediate threat, but they're asking people
to remain vigilant.
Oil prices fell in the last session as concerns about an oversupply of crude oil once again came to the fore. Nigeria's oil minister told "The
Financial Times" OPEC may call an emergency meeting if crude slips further in the weeks ahead.
If you take a look and you see at the -- look at the graph of how crude has fallen very sharply down some 40 to 50 percent. A slight little
hiccup of a recovery by the beginning of February, but that hiccup just about evaporated or at least it looks like it's going in the opposite
direction.
Kazakhstan's economy relies heavily on oil exports and it's been hurt by lower oil prices. But there's more - there's also a double whammy
effect because of Russia's economic woes. Kazakhstan's neighbor to the north is its biggest trading partner.
Karim Massimov is the prime minister of Kazakhstan. Prime Minister, good to see you, sir.
KARIM MASSIMOV, KAZAKHSTAN PRIME MINISTER: Very nice to meet you.
QUEST: Thank you. Let's start with this just. Just how difficult - I know the president - president and his wife - has warned it's going to be
a difficult year. But you've got this pensa (ph) movement, haven't you? Low oil prices and this slowdown in Russia. How are you going to handle
it?
MASSIMOV: It's not an easy time, but at the same time we strongly believe that there's a good momentum for structural reforms within the
economy. It's a good opportunity for us to be less dependent on oil and to really (ph) dependent on the minerals. That's why we should use this
particular momentum to be prepared to live in the low price for energy.
QUEST: That's crucial. You've - if I can be blunt - you've got to get used to this low price. So you had better start having an economy that
runs on this lower price.
MASSIMOV: It's a good momentum for us to us these low prices for oil and gas and to restructure our economy. And we really believe this is a
good opportunity for us to do that. It is a unique momentum.
QUEST: But to restructure into which direction? Because you had a fast-growing economy and your - there is a huge amount of inward
investment. So what do want to restructure to?
MASSIMOV: We made a decision our self that we will go into the direction of OECD. We want to be a part of OECD Clubs, whatever it takes.
And OECD - Organization for Economic -
QUEST: Whatever it takes?
MASSIMOV: Whatever it takes.
QUEST: It's going to take a lot.
MASSIMOV: We are ready and we are prepared. We want to be within the club of 30 most-developed nations, and we will do whatever it takes.
QUEST: By when?
MASSIMOV: By 2050.
QUEST: 20 -
MASSIMOV: 50.
QUEST: 2050, right. Now you were talking today - you'd been speaking at the inaugural Global Law Summit, you've been talking about Magna Carta
and you've been talking about the rule of law.
Now, that's one of the core things that has to be addressed in Kazakhstan and it's appropriate that you were talking about it here. Rule
of law, certainty for investors, rooting out corruption.
MASSIMOV: We made a decision to go into the number of direction. Number one, the rule of law, number two, professional civil services,
number 3, the restruction of the economy - structural reforms -- , and number 4 is the further democratization in the country.
All together it will help us to bring more investors and further develop our country.
QUEST: How does that strategy fit in with the Eurasian economic union that you have with Belarus and with Russia that will also be joined by
other countries? Now we saw - I mean, you know - the Ukraine - we've seen what happened when they tried to go toward the European Union. But I'm
guessing you also want to have improved relations - trade relations - with the E.U.
MASSIMOV: We initialed the agreement with the European Union and we strongly believe that we can sign a full agreement with the European Union
about enhanced preparation of partnership with the European Union within next couple of months. At the same time, Russia is our strategic partner
and we had developed a Eurasian Economic Union. And we believe that our Eurasian Economic Union should develop into the direction of OECD and
enhance preparation with the European Union as well.
QUEST: So you're basically saying as I understand you correctly, that the main strategic partner is Russia but you also want to have a very
strong relationship or at least a trading relationship with the E.U. And I ask you, sir, are those two compatible?
MASSIMOV: We believe that these two organizations are beneficial to each other. And we believe that the Eurasian Economic Union should go into
the direction for more close ties with the European Union.
QUEST: Final question, sir. Are you going to get the Winter Olympics? And when it's you and Beijing, Beijing doesn't have any
facilities, it doesn't have a ski resort, it's got to build everything. You have some of the best skiing in the region if not the world, you've got
most of the resources, it won't cost you a fortune.
MASSIMOV: Best city should win.
(LAUGHTER)
QUEST: How much are you budgeting for it?
MASSIMOV: We are ready to pay up to $10 billion.
QUEST: Ten billion dollars. Sir, may the best city win. Thank you for joining us as well.
MASSIMOV: Thank you very much.
(END VIDEOCLIP)
QUEST: Now the - earlier on the air we were talking about another country with strong economic ties -- historically and today -- to Russia,
and that's Greece.
The Greek defense minister told CNN's John Defterios that if Greece were to break from the Eurozone, it would open the door to its friends and
allies like Moscow. But one questions of course how much of those comments from Moscow - mischief-making?
(BEGIN VIDEOCLIP)
PANOS KAMMENOS, GREEK DEFENCE MINISTER: It's a friend and ally because we are orthodox countries. The second one is to have the 25
percent of our tourism from Russia. The 70 percent of our exportation in fruit and agricultural products is in Russia.
That's why our position is more different than following all the other body counters. I think it's a more realistic option than the other
scenario that they write everywhere. But even though we are broken, if we will be broken from Germany's (pressure), we are obliged to open other
doors and with Russia and with China and with everybody.
JOHN DEFTERIOS, CNN'S "EMERGING MARKETS" EDITOR: Is it really worth Greece to fight to stay in the Euro at all costs with all the austerity
that's been imposed over the last few years in particular?
MASSIMOV: The more important for us it's not to leave from Europe but change Europe. Stop the austerity not only for the Greek people but also
for the Italians, the Spain, the Portugal people. Germany must understand that in this union - in the European Union - with democratic nations - we
must cooperate altogether like we're the same power.
DEFTERIOS: It seems like it's gone very political, particularly with the finance minister, Mr. Schauble of Germany, vis-a-vis the new
administration in Greece. Has it gotten too personal?
MASSIMOV: I mean, I think it's Mr. Schauble problem. We have seen the last decision of Eurogroup - all the minister of economy of Europe have
a descent (ph) that Greece is in the right side. And Schauble - he's alone.
(END VIDEOCLIP)
QUEST: Oh, well there we all. Unhealthy (ph) as it is, nice to see the European family still holding together. Now while the politicians
tried to hammer out a deal, Greeks are wondering where all the wrangling of the bailout is heading. Elinda Labropoulou has more from Athens.
(BEGIN VIDEOCLIP)
ELINDA LABROPOULOU, JOURNALIST: Carnival, a time of celebration in Greece - a break from everyday worries and a chance to forget the country's
troubles. For Panagiotis Argirakis, Carnival is a time of cashing in. But when the mask comes off, it reveals the uncertainty of life in Greece.
PANAGIOTIS ARGIRAKIS, STREET PERFORMER: Life in Greece is a lot like juggling actually. It's a strange situation that we've been living here
for the past five years, like we've been living the same day every day for five years now. It's a day that you switch on the TV and you hear the news
that, oh, we're about to get bankrupt.
We hope that reforms actually will take place and maybe this is the last chance that we have.
LABROPOULOU: Tourism is crucial to the Greek economy, none more so than on the island of Mykonos. Luxury hotel owner Iraklis Zissimopoulos
describes running his business under the current circumstances.
IRAKLIS ZISSIMOPOULOS, HOTEL OWNER: We need a permanent and stable solution so the investors will come back to Greece so we can plan our own
businesses how we will manage to run them. We have to know what will be the environment, the taxes because now the economy's frozen.
So, for example, I want to build a new hotel and I don't know what will happen next month. So this makes us stop everything and to wait. We
cannot hold our breath forever.
LABROPOULOU: On the same (inaudible) Athens street of Voukourestiou, renowned for its high-end boutiques and shops, you will find few people
looking and even fewer buying.
The Greek economy is in dire straits. The government appears to have been given some breathing space. But is this a question of simply kicking
the can down the road or is it truly a first step to recovery?
Senior political and financial analyst Nick Malkoutzis says now is the time to start addressing the make-or-break issue - debt relief.
NICK MALKOUTZIS, EDITOR, MACROPOLIS: Four months from now we will again be talking about very tough negotiations between Greece and the
Eurozone about how to progress.
And that's the big question mark hanging over this deal because it leaves it just short of when Greece has to repay the European Central Bank
almost 7 billion euros in the summer and with no clear picture about how we move forward here and if there will be debt relief.
LABROPOULOU: Hopes and fears - a juggling act as Greece and Europe consider their next moves.
(END VIDEOCLIP)
QUEST: Life in West Africa is beginning to return to normal after the worst Ebola outbreak in history. Now Sierra Leone has more reported cases
of the disease than any other country. The foreign minister will be here next.
(COMMERCIAL BREAK)
QUEST: Now before we continue, just a quick note of apology. You may have noticed in our last interview with the Greek defense minister, we had
a bit if finger trouble with the computers and he actually appeared as the Kazakh prime minister again. Actually of course it is Panos Kammenos and
we do apologize that some of the computers were not working as fast perhaps as they should have been.
Now, the West African nation of Liberia is reopening its borders in a sign that life is slowly returning to normal in the countries ravaged by
Ebola. Curfews have been lifted, schools are open again after a five-month shutdown. Health officials say the number of cases in the worst-hit
countries has dropped significantly in recent weeks. All told, the outbreaks claimed more than 9 and a half thousand lives.
Joining me now is Samura Kamara, the foreign minister of Sierra Leone which has the highest number of reported cases of the disease. We know,
sir - thank you for joining us.
SAMURA KAMARA, SIERRA LEONE FOREIGN MINISTER: Thank you.
QUEST: We know - we've a lot to talk about - but let's just get this out of the way to start with - we know that the goal is zero transmissions
and zero cases within a matter of months.
KAMARA: Sixty days.
QUEST: Within 60 days. Can you do it?
KAMARA: We'll try - we are --
QUEST: How close are you?
KAMARA: -- wherever this time ends. Because the numbers have now been going down considerably. Ebola peaked in Sierra Leone exactly on the
ninth of November when the spread on that day amounted to 111. And since then it has been going down. Today we're talking about single digits - and
that's very, very, very satisfying.
QUEST: But no room for complacency in this last part?
KAMARA: No - exactly. This is hardest part is the last - the last push is the hardest part.
QUEST: On the economic front, the devastation from the economy has been absolutely extraordinary.
KAMARA: Unstable (ph).
QUEST: There is to be a meeting in Brussels for countries to look at how to assist. Your economy was growing very fast. What do you - what
will you now need when the donor (ph) meeting takes place?
KAMARA: First of all, we need to agree to reduce Ebola spread to zero. And after that, we need to agree to have a robust, resilient post-
Ebola economic recovery program.
QUEST: So does that mean grants, aid, debt? What are you looking for?
KAMARA: It's a combination. We are pushing for debt relief -
QUEST: Right.
KAMARA: -- from numerous (inaudible) institutions. We're also pushing for the construction and the building of resilience and more robust
public health care infrastructures.
QUEST: But you will be familiar with this report from the auditor general concerning some of the missing money that went forward. I mean,
the country has failed to account for nearly a third of the $20 million it received to fight Ebola. Now the government's promised a full
investigation.
KAMARA: Yes.
QUEST: This goes to the heart of the ability to transform an economy, doesn't it?
KAMARA: Yes it does.
QUEST: When money being sent in is misappropriated - or allegedly.
KAMARA: Well this also goes to the heart of the president's determination of (inaudible), transparency and accountable governments.
And has been great now telling everybody that Ebola money is not money -
QUEST: But it disappeared!
KAMARA: Well, don't show that it disappeared, it's about accounting, it's about record-keeping or so. So at a moment - it was reported in
Parliament and I do believe Parliament will summon all those who have been called - written about in their report to give an account.
QUEST: You want to be the president of the African Development Bank?
KAMARA: I certainly do and I'm hopeful.
QUEST: You're hopeful. Now there are one, two - you've got candidates from Nigeria, Ethiopia, Tunisia, Chad, Cabo Verde, Zimbabwe -
KAMARA: Well, it's a number.
QUEST: You're eight. I was giving them all just to be fair -
(LAUGHTER)
QUEST: -- for the moment before they all write and say can we come on the program.
KAMARA: Right.
QUEST: Give me in 30 seconds, sir, your election pitch why you should be the president of the ADB.
KAMARA: The bank is a development institution trenchantors (ph) from African economies and I've spent almost all my life in development, and I
do believe I have the experience and knowledge to be able to build on the achievements so far the bank has made to move the African economies
forward.
QUEST: We wish you luck, sir. We wish you luck.
KAMARA: Thank you.
QUEST: Thank you for joining us this evening. We appreciate it. Now, --
KAMARA: Thank you.
QUEST: -- that'll be one envelope that will be opened up when they announce the winner of the ADB's presidency. There were other envelopes
opened up as you'll be well aware last night, and what (AUDIO GAP) during Hollywood's biggest night - the Oscars. What other issues were there?
We'll explain (RINGS BELL) - "Quest Means Business."
(COMMERCIAL BREAK)
QUEST: Ratings for Hollywood's biggest night may have been down by nearly 15 percent this year. The actor Patricia Arquette sent shockwaves
through Hollywood - not with her Oscar victory but with her comments on pay for female performers.
(BEGIN VIDEOCLIP)
PATRICIA ARQUETTE, ACTOR: We have fought for everybody else's equal rights. It's our time to have wage equality once and for all and equal
rights -
(AUDIENCE APPLAUSE)
ARQUETTE: -- for women in the United States of America.
(END VIDEOCLIP)
QUEST: Equal rights/equal pay. Well this would all be very good if actually those involved who are making those decisions were on their side.
The Sony hack exposed the reality that some big name actresses get paid far less than men.
And here's the point - one of those women responsible for setting the pay of other women - Amy Pascal of Sony - admitted last month paying women
more just wouldn't be good business.
(BEGIN VIDEOCLIP)
TINA BROWN, JOURNALIST: What is your explanation? I mean, you're the head of the studio, these actresses are getting paid less. They don't
realize they're getting paid less from the men. Explain --
AMY PASCAL, FORMER CO-CHAIR, SONY PICTURES ENTERTAINMENT: OK, so here's the problem -
BROWN: -- explain.
PASCAL: I run a business. People who want to work for less money, I'll pay them less money. I don't call them up and go, "Can I give you
some more?" Because that's not what you do when you run a business. The truth is and what women have to do is not work for less money. They have
to walk away.
(END VIDEOCLIP)
QUEST: Leslie Yazel is the executive editor of "Cosmopolitan." She joins me now from New York. Leslie, good to see you. Look, there you - it
doesn't get more blunt than that. Patricia says give us more money, Amy says well, if you don't ask for it, I ain't gonna give it to you. Who's
right? Who's wrong?
LESLIE YAZEL, EXECUTIVE EDITOR, COSMOPOLITAN: Well that's the big issue is that women aren't asking. In our 15-page pay gap special edited
by our "Cosmopolitan" careers editor Sheryl Sandberg, we pointed out that women aren't asking. Men are four times more likely to ask for money and
negotiate, and men ask for 30 percent more than women do when they do ask.
QUEST: Right, but then of course you have that famous case of the Microsoft chief exec who, when giving that famous speech, says, well women
should be told - I think it was karma - it's good karma and all good things will come to you in the end.
YAZEL: It's not good karma, it's actually bad business. I mean, Department of Labor says that, you know, if we close the pay gap, women
would have $800,000 more at the end of their careers to spend and pump back into the economy and that's why I think the pay gap is going to be a big
issue, it's going to be a big issue in the presidential campaign.
QUEST: The whole question of sexism in the moves, the whole question of pay - I mean, there's a whole lot of issue of roles for women over 40,
you'll remember there was a little talk about that the bastors (ph). And now of course you've got more of this going on. But I - here's the real
problem. I hear a lot of noise about it, but I don't see much change about it. And I need you to explain to me why. Is it because we're just - we
all switch off when we hear it?
YAZEL: I mean, I think it's hard when there aren't great roles for women to then fight for better pay. And I think that we see this.
Patricia Arquette said that she paid her babysitter and her dog walker more than she made making "Boyhood." So, it's a huge problem in Hollywood and
it's a huge problem across the country and women have to start asking and bosses have to start listening. It's a massive challenge, it's something
that we talk about every month at "Cosmopolitan."
QUEST: Right. You - well - listen I'm going to wade in here into way beyond my pay grade and absolutely - look, you're familiar with the hash
tag #askhermore -
YAZEL: Yes.
QUEST: -- syndrome - this whole question of women on the red carpet, they're asked about their dress, they're asked about their jewels. They
should be asked, I don't know, about Ebola or whatever the other issue du jour is. But look - I'm on such thin ice here. Aren't they their own
worst enemies?
They go and buy -- borrow -- these outfits, they go and borrow these jewels, they then make a big song and dance about it, and then they
complain afterward that their switch attentions paced (ph) on it.
YAZEL: Oh, everybody wants to see them in these great dresses, they love wearing them, it's a dream for all the women out there. And the truth
is like nobody has to ask them who they're wearing. This doesn't even have to be an issue because for those of us who know how it works behind the
scenes, as soon as those dresses hit the red carpet, public PR releases go out to the media and producers and you and everyone else and they say
here's what this person is wearing.
And so, you know, it's not a question that has to be asked on the red carpet, but I think people enjoy seeing the answer and there's plenty of
time to talk about the craft and everything else.
QUEST: You're right. Now #askhermore - let me ask you finally, was there too many social issues raised last night? Did it - everybody took
their moment and you can't -
YAZEL: Yes.
QUEST: -- blame them for that. But it - it all becomes a bit - I don't know - uneasy when it's so obvious.
YAZEL: Well, it's a fine line between sort of grandstanding and in making a heartfelt point. I mean, I think you saw, you know, the best
adapted screenplay writer talk about this personal experience and, you know, talk about gay rights and that was a great moment. And then other
moments they, you know, were important - maybe they didn't feel as genuine, but it's TV and it's live TV and that's what's exciting.
QUEST: Thank you very much for joining us. I was going to say askhermore, but thank you very much (inaudible). I was going to tell you
what tie I was wearing and what my suit is -
YAZEL: Yes, who are you wearing?
QUEST: Well, that's a very good one. I'm wearing - you really don't want to know, I promise you. (LAUGHTER). Thank you very much for joining
us.
YAZEL: OK.
QUEST: It was made in Hong Kong. All right, one of the Hong Kong tailors. Cheap and cheerful, but it fits where it touches. We will have a
"Profitable Moment" after the break. This is "Quest Means Business." (RINGS BELL).
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." I was just making a list a moment ago of all the social issues that were raised - or at least many of
the big ones - that were raised at last night's "Oscars." Well obviously we have the equal pay one where Meryl Streep nearly launched herself out of
her chair in a sort of a - in a fit of rage. But then we had the question of diversity, we had immigration with the green card rather odd comment and
the Mexican immigration issue raised, we had Alzheimer's in one speech, there was ALS - of course that was of the winning movie as well. We had a
reference to suicide as - that was also potential one of the speeches.
Now you can't really blame people for taking their moment. After all, it's the moment when you can get your message across, you've got millions -
tens of millions - of people watching. Except last night's "Oscars" had one of the lowest television audiences in the United States for six years.
It was down from some 46 to 33 million or something.
So whatever that message was, maybe that show was too long and maybe people tuned out and maybe they'd had enough. But whatever it was, the
messages became important but not that many people finally heard about them. Until the following day. And that's "Quest Means Business" for
tonight. I'm Richard Quest in London. Whatever you're up to in the hours ahead, (RINGS BELL) I hope it's profitable. See you tomorrow.
END
