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NASDAQ Highest Since Dot-Com Bubble; New NASDAQ 5,000 Different Than Bubble; Mixed Results for European Markets; Authorities Searching for Nemtsov Killer; Nemtsov's Criticisms of Russian Economy; Mysterious Murders in Russia; ISIS Supporters Threaten Twitter Founder
Aired March 02, 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: The Dow heads to a record high on a milestone day for the NASDAQ. It's Monday, the 2nd of March.
Tonight, the NASDAQ is back. For the first time since the dot-come bust, the index hits 5,000 points.
Russia reels from the death of Boris Nemtsov. We'll hear from one of President Putin's economic advisors.
And the CEO of Tinder tells me why users won't mind paying to use his app.
I'm Maggie Lake. This is QUEST MEANS BUSINESS.
Good evening, welcome to the program. The Dow is closing at a record high. The star of the show on Wall Street tonight, though, is the NASDAQ.
The NASDAQ has crossed the 5,000 point mark for the first time since the height of the dot-come bubble in the year 2000.
It has been a roller coaster 15 years. At one point, the NASDAQ had lost nearly 80 percent of its value, but it has been rebuilt, thanks
largely to the mobile and social media revolutions, and on the backs of giants like Apple, Google, and Facebook.
Alison Kosik is here with me to talk about this. Alison, it has been a long time coming. But we've been flirting with this level for a little
while.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes.
LAKE: What is it that got us over the hump today?
KOSIK: I think you're just looking at sheer momentum, not just with the NASDAQ, but with the Dow as well. As you said, we see the Dow crossing
yet another milestone of its own, another record high.
But as far as the NASDAQ goes, you've got a lot of people saying wait a minute, could this be another bubble? Could we be back into the 90s
where we saw these companies that didn't show any earnings, their stock prices going through the roof.
And a lot of analysts say this time it's different, because the companies in the NASDAQ, most of them are actually making a profit, that
earnings are actually -- of these tech companies are actually driving the market. Apple is your best example on that point.
And also just overall, these analysts are saying what we're in the middle of is what they call an "econo-thaw," meaning we're not just thawing
out from the winter, the economy is thawing out from the Great Recession, and you're seeing these major indices reaching these all-time highs.
But many analyst are saying that investors at this point should even look for higher highs at this point because the expectation is that the
data here in the US is only going to get better.
LAKE: Yes, finally that recovery that everyone's waiting for. And you can see that, not just the NASDAQ hitting 5,000, but a very nice-
looking rally for the Dow --
KOSIK: Absolutely, yes.
LAKE: -- as well, right? Alison, thanks so much.
KOSIK: You bet.
LAKE: Great to see you here in the studio.
Well, as the NASDAQ makes its triumphant return to the 5,000 mark, Jim Boulden looks at why last time around things were very different.
(BEGIN VIDEOTAPE)
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT (voice-over): The old adage what goes up must come down does not have a better example than the
NASDAQ. Fifteen years ago, the dot-come bubble was as big and thin as it gets.
AOL had just merged with CNN parent Time Warner. Online pet supply sites, clothing sites, and travel sites littered the internet.
ALAN VALDEZ, DME SECURITIES: Back then, it was like, OK, heads, tails, I'll buy this stock. And stocks would open at $1 and go up to $20 a
day later and back down to $1 the next day. You don't see that fluctuation anymore because it's real companies out there now.
BOULDEN: NASDAQ's main index hit its record high of 5,132 on March 10, 2000. Within months, the NASDAQ fell more than 60 percent. And the
crash was not just about fly-by-night websites that made no money.
JEREMY SIEGEL, WHARTON SCHOOL OF BUSINESS: Back in 2000, the valuations were totally crazy. We had Cisco at 150 times earnings, EMC,
JDS Uniphase, I don't know if people remember these stocks. Even Oracle, a good company, was selling at over 100 times earnings. Yahoo! was 600 times
earnings. Those are astronomical valuations.
BOULDEN (on camera): On March 10, 2000, the top three firms in the NASDAQ were Microsoft, Cisco, and Intel. The only website in the top 10
then, Yahoo! So, what's driving the NASDAQ back to lofty heights now? Well, no surprise, Apple is the biggest of the big fish. It is the world's
most valuable firm, so of course, it's also top of the NASDAQ.
More interesting, actual dot-comes: Google, Amazon, and Facebook. Well, Google was tiny in 2000, and Mark Zuckerberg was in high school in
2000. Microsoft and Intel and Cisco are all still firmly in the top 10, but are much smaller companies now by market cap.
BEN WILLIS, PRINCETON SECURITIES: What you need to be careful of is the fact that NASDAQ and Apple, Apple represents 10 percent of the NASDAQ
composite. That is extraordinary. So yes, that is the bull that's leading the charge in that market, if you will, but justifiably so.
BOULDEN: The bubble in tech, if there is one these days, is not confined to the stock markets. It's the amount of money pouring into
startups from private equity and crowd-funding. Think Airbnb and Uber, each with sky-high valuations, but far from going public. These days,
going straight to the stock market is not the only sigh of success or impending failure for a dot-com.
Jim Boulden, CNN, London.
(END VIDEOTAPE)
LAKE: Well, in the months ahead, investors will very much be hoping history is not repeating itself.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Tonight, on a special "Moneyline," one of the most dramatic days in Wall Street history. This afternoon, the NASDAQ was in
free fall, at its low, down 574 points, a staggering 13 percent.
(END VIDEO CLIP)
LAKE: Last time that NASDAQ was at 5,000, it went on to lose more than 30 percent of its value within a month. Stocks like pets.com became
the symbol of the tech bust. After going public in 2000, it lost $147 million and closed for good nine months later.
Grocery deliver service Web Van was valued at $1.2 billion in 1999 before investors realized its margins were unsustainable. It went bust and
laid of 2,000 employees before being snapped up by Amazon.
Shares in eToys.com hit a high of $84 in 1999, only to be deemed worthless just a year and a half later. After living though two
bankruptcies and several honors, eToys is actually still doing business.
Joining me now is Anthony Chan, he's chief economist at Chase Private Client, a unit of JPMorgan. Anthony, thanks for being here today.
Remarkable that it's taken us 15 years to get back here.
I want to ask you about sentiment, because that experience hurt so many retail investors. They were really the ones who felt the pain. And
in some ways, it feels like they haven't gotten over that yet. What should we be thinking about when we look at where the stock market is in the US
right now?
ANTHONY CHAN, CHIEF ECONOMIST, CHASE PRIVATE CLIENT: I think we should always be thinking about where the fundamentals, can you justify the
prices, are the companies making money? And the answer to all of those questions today is in most instances, companies are making money.
Back then, 15 years ago, many of these companies were sort of a pipe dream, and people were sort of hoping that things would get better. Today,
investors are a lot smarter. They've been burned, as you correctly pointed out.
And so, these prices today are much more realistic. In fact, on an inflation-adjusted basis, the NASDAQ is not at 5,000 compared to the year
2000. We are below 2100. So, these numbers today are a lot more solid in terms of the fundamentals.
LAKE: And perhaps that was the lesson that was hard-learned. We keep asking ourselves, is this for real? Is this for real? Perhaps that's not
a bad thing as we head into this record territory.
The underlying health of the economy, is it better than we think maybe? Is there enough momentum for us to continue to move forward, and
would we expect to see more stock gains, or has some of that best news been priced in, do you think?
CHAN: I think a lot of the good news has been priced into the market, when you look at the general market, not just the NASDAQ. Because the
rules of being careful when you invest is not just relegated to the NASDAQ. That's good for the New York Stock Exchange, the S&P 500, everything.
And so, when we look at the fundamentals, they are, in fact, improving. Last year, the US economy grew at 2.4 percent. This year,
we're probably going to see something north of that in the neighborhood close to 3 percent. So, the fundamentals are continuing to improve.
We're seeing that virtually all over the world that the fundamentals are improving. The question is how much are they improving? But they are
improving.
LAKE: That's right. And one of the reasons you're seeing so much money move into US stocks is because relative to everything else, it still
looks attractive.
People are looking at Europe, looks like things are improving, but are they going to be able to achieve that escape velocity we heard Ben Bernanke
talk so much about when the US was struggling to get out of recession. What do you see for the European economy?
CHAN: I think the European economy is going to make some progress. I don't think the European economy is as healthy as the United States. Last
year, Europe, of course, the eurozone growing about 0.9 percent. This year, I think we can grow 1 percent, maybe a little bit more, but nothing
close to the 3 percent.
Now, some economies are strong. Spain is doing pretty well. In fact, in the fourth quarter, growing almost at 3 percent on an annualized pace.
Germany doing the same thing. But there are some companies (sic) that are a little bit weaker.
Today, this morning, one of the things that really impressed me was the Purchasing Managers Surveys for Europe. They now are in expansion
territory. Last month we saw that, this month we see that.
And we're seeing good strength in Germany, we're seeing good strength in Spain. And a big surprise: we saw a little bit of strength in Italy
which, as you know, has been in a recession for a long, long time.
(CROSSTALK)
LAKE: Yes, and that is important. That's right. And as we see those sort of beginnings of growth, the ECB unveiling its own quantitative
easing. A lot of people looking at Europe against that backdrop and saying, you know what? You should look at European corporate.
The debt market is going to start to mature and evolve there as you have all this quantitative easing come into play. Their balance sheets,
they're going to have favorable conditions, as we saw here. Does that look like and attractive destination to you, given all the QE?
CHAN: I think that there's a lot of political uncertainty in Europe, and for that reason, I'm excited, but I'm cautiously optimistic. When you
looked at the European equity markets, they've been up almost 9 percent --
LAKE: And those are records, yes.
CHAN: -- since Draghi talked about quantitative easing. So, to some -- to look at the numbers straight, straight-wise, you see that the
European equity markets are actually outperforming US equity markets this year. But again, the fundamentals are improving.
And one of the things that also encourage me was the inflation numbers coming out of Europe. A lot of people worried about deflation. Today we
saw the numbers picking up. And if you look at the numbers excluding food and energy, they were even more encouraging. So, the quantitative easing
is going to help, and we don't have to worry about that massive deflation.
And the last point I will make: look anywhere in the world that you've seen quantitative easing and look at the outcome a year or two years
later in the equity market. It's been positive, and I expect the same thing to happen to Europe.
LAKE: That's right. You can't fight those central bankers, at least not right now.
CHAN: That's right.
LAKE: Anthony, so great to catch up with you. Thanks for coming in.
CHAN: Pleasure.
LAKE: Anthony Chan from Case Private Wealth. Well, Monday's trading yield had mixed results for the markets in Europe. The FTSE and the DAX
ended practically flat. The Paris CAC dropped 0.7 percent, while stocks in Zurich ticked up about a half a percent.
A Russian opposition leader gunned down within sight of the Kremlin. We'll have the latest on the investigation, and we'll examine Mr. Nemtsov's
criticism of the Russian economy.
(COMMERCIAL BREAK)
LAKE: Boris Nemtsov was gunned down just steps from the Kremlin, and pressure is mounting on Russian authorities to find the killers. Vladimir
Putin has ordered three law enforcement agencies to investigate the murder, that's according to the Kremlin.
Authorities have questioned Nemtsov's girlfriend, who was with him when he was murdered. Police are looking for a man with short brown hair
who stands between 5 foot 7 and 5 foot 9. The killer was reportedly wearing blue jeans and a brown sweater.
Ivan Watson joins us now on the line from Moscow. And Ivan, what's the mood in the city this evening?
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (via telephone): Well, I think this is a major metropolis that's still kind of going about
business as usual.
However, if you go to the bridge next to the Kremlin where Nemtsov was killed on Friday, night, there you will see a somber display of thousands
of bouquets of flowers, pictures, signs, in honor of Nemtsov made by some of the tens of thousands of people who marched mourning this man in a march
through central Moscow on Sunday.
LAKE: Ivan, what do people think of -- Putin has put, as we just said, three agencies in charge and has vowed they will investigate this
thoroughly. Do people have confidence that they will be able to find the person who did this? It seems there's a great deal of skepticism
surrounding that.
WATSON: There's certainly skepticism from among the people, the supporter of Nemtsov, the members of the opposition, who highlight the fact
that Nemtsov was killed really on the edge of Red Square, so close to the Kremlin, a stone's throw away from the Kremlin.
Arguably and area that is one of the most closely-monitored and heavily-guarded areas in all of Russia. It's an area that is bristling
with security cameras.
And some of Nemtsov's aids have told me that the fact that they killer could shoot Nemtsov and then escape in a waiting getaway care so easily and
that nobody has been apprehended to date, suggests that he does not believe that the investigation will be followed through, to find the people behind
this murder. That's, again, coming from a close supporter and confidante of Nemtsov.
LAKE: All right, Ivan, thank you very much for the latest. Ivan Watson in Moscow.
Well, Nemtsov was fiercely critical of Vladimir Putin's handling of the economy. In a radio interview just hours before his death, Mr. Nemtsov
made it clear he wanted the situation to change.
(BEGIN VIDEO CLIP)
BORIS NEMTSOV, RUSSIAN OPPOSITION LEADER (through translator): Of course we need political reform in the country. Of course, when the power
is concentrated in the hands of one person, and this person always rules, everything ends up in an absolute catastrophe. Absolute.
So, I will repeat it again that this is a handmade crisis. This crisis is particularly clearly obvious when you look at how other countries
have developed. You see Russia is in crisis. America has grown by 4 percent at the same time. China has grown by more than 7 percent. Europe
has grown by 1.5 percent.
(END VIDEO CLIP)
LAKE: Mr. Nemtsov told "Newsweek" that Mr. Putin's policies were sinking Russia. The country's economy is predicted to enter recession this
year. Mr. Nemtsov said that couldn't be blamed on just the fall in oil prices.
Nemtsov also told CNN that rampant corruption left Russian businesses vulnerable. He said the preparations for the Winter Olympics in Sochi had
been marred by unprecedented corruption and question where $20 billion to $30 billion of funds had gone.
He also warned all Russians were feeling the effects of the war in Ukraine. He called Vladimir Putin's standoff with the West "insane" and
"pointless."
Well, Andrei Illarionov is a former chief economic advisor to Vladimir Putin. Today, he's senior fellow at the Cato Institute, and he joins us
now, live from Washington. Thanks very much for being with us tonight.
You heard some of the criticisms that Nemtsov had about Putin and economic policies. Just where do you think the Russian economy is right
now. I hear very varying forecasts, with anything from a decline of 10 percent to the fact that maybe it's not as bad off as we think. What is
your assessment?
ANDREI ILLARIONOV, FORMER CHIEF ECONOMIC ADVISOR TO VLADIMIR PUTIN: First of all, the comment that Mr. Nemtsov made about the economic policy
of the current Russian government is absolutely correct, that it's a devastating policy, devastating the Russian economy, devastating the
Russian society.
It is definitely one of the most important elements of the policy today, the war against Ukraine. This war against Ukraine costs the Russian
economy, Russian society, at least $125 billion US. It's exactly the amount of exchange reserves that country hast lost last year. And this is
mostly, if not exclusively, due to the war against Ukraine.
So, this year, year 2015, Russian economy is going to be in negative. It can be discussed how much there will be a decline in the economic
output, but there will definitely be negative growth, maybe at least 3 or 2.5 percent decline this year.
LAKE: If this economic -- if this strategy is so damaging to the economy, why are Putin's poll numbers still so high?
ILLARIONOV: This is a result of the situation where we are not dealing with a democratic country or even semi-authoritarian country.
This is a hard authoritarian regime with elements of totalitarianism, where the behavior of the population and the behavior of the people is due
to not so much of economic situation, but due to psychological brainwashing, which is at an unprecedented level right now in Russia.
And that is why people do trust and do believe, mostly through propaganda, to this disinformation war that has been waged again. The
Russian people, again, the people of other countries, in Ukraine, anyone in Europe and the United States. But certainly, the Russian people happen to
be the main victim of this propaganda war.
LAKE: Well, you can only prolong that mirage for so long. If the economy continues to contract, and if it comes anywhere near some of these
more aggressive targets, the people of Russia will undoubtedly start to feel that pain. Do you think that there is any opposition within the
country that will be able to use the economy to bolster its case at all?
ILLARIONOV: No, this year will be definitely very difficult for the Russian people because the crisis -- this particular crisis -- will effect
mostly a living standard, as the income of the population, the consumption level.
That level can fall at least 8 to 10 percent. That is definite. It's not the real output, but consumption level, income, wages, are going to
contract very substantially. It has already seen in the last few months that incomes are falling, and they will be falling even further during
these years. So, that is why the pain will be felt very well.
Whether people would translate this fall in income and economic hardships in political behavior, it's rather hard to say at this moment.
Because once again, the control by the regime of the psychological filling our people is pretty strong at the moment.
LAKE: And what about the oligarchs? What about the business community? They have been mostly silent on the sideline. Putin has
protected them, and that has been a beneficial relationship for both for a long time.
That is not the case anymore. If sanctions continue, they'll certainly see their economic fortunes decline. Do you think that they will
continue to support Putin, and is that out of fear?
ILLARIONOV: The problem of the current hard authoritarian regime is now the oligarchs support Putin because they depend on Putin. They're
dependent on this particular regime. They're dependent on the state orders, they're dependent on their survival, even just physical survival,
as we have seen from the recent events.
So, that is why we should not expect any serious movement on the part of oligarchs. In the worst case, they will try to escape from the country,
they would go to immigration or something like that. Some of them have done already before.
So, it is rather hard to expect any -- some kind of positive movement within society, at least as long as this particular regime is continuing to
have such a hard grip over society, regardless of whether they're a common people or oligarchs or any -- some kind of remaining quasi-political
parties.
LAKE: Andrei Illarionov, thank you so much for joining us this evening
Money, power, and influence aren't always enough to protect the opposition in Russia. As Lynda Kinkade reports, Nemtsov's death isn't the
first mysterious murder Moscow has seen.
(BEGIN VIDEOTAPE)
LYNDA KINKADE, CNN INTERNATIONAL CORRESPONDENT (voice-over): Four bullets in the back and the Russian opposition leader's voice was silenced.
Even as authorities promise an investigation, many believe Boris Nemtsov never stood a chance.
EDWARD LUCAS, SENIOR VICE PRESIDENT, CENTER FOR EUROPEAN POLICY ANALYSIS: The opposition is excluded and delegitimized. There's no room
for even constructive criticism in the Russian political system.
KINKADE: The killing has revived memories of other cases. The journalist Anna Politkovskaya, a vocal critic of Russia's war in Chechnya,
her home was a safe place until it became the scene of her murder, shot four times in the entrance of her Moscow apartment in 2006.
And Alexander Litvinenko, a former KGB officer, died a slow death after drinking a lethal dose of radioactive Polonium, his tea spiked in a
London hotel during a meeting with two former Russian security servicemen. All fierce and outspoken critics of President Vladimir Putin. All killed
in mysterious ways.
KINKADE (on camera): We still don't know who ordered those killings, and now we have this one. What do you think those deaths have in common?
ALEXANDER NEKRASSOV, FORMER ADVISOR TO BORIS YELTSIN: Well, I don't think they have anything in common.
KINKADE (voice-over): The Kremlin has denied any involvement in the cases, and a former Kremlin advisor believes President Putin is innocent.
NEKRASSOV: There's absolutely no proof of any involvement of the Russian state.
KINKADE: But those suspicious deaths are not the only ones. A 50- year-old human rights activist was dumped by the side of a road, with bullet wounds to her head. A trainee journalist and a human rights lawyer
both shot in broad daylight meters from the Kremlin.
The editor of Forbes Russia, killed with a machine gun outside his Moscow office. And a business tycoon in self-exile was found with a noose
around his neck. Was it a suicide? The coroner could not say.
The Kremlin promised a thorough investigation each time. Some of those cases have led to convictions. The latest assassination of Boris
Nemtsov has sparked a flood of conspiracy theories from politicians and investigators, from claims it was extremists, or perhaps people within his
own party attempting to destabilize the government. Russian President Putin has vowed to track down the killer or killers.
ANNA VEDUTA, FORMER OPPOSITION SPOKESWOMAN: People like him are always under surveillance in Russia, so in this sense, he's had bodyguards,
but they were from a Russian state agency. There is no way he wasn't under the state surveillance, and moreover, they were the civilian cameras all
over the place.
KINKADE: Despite a financial reward, so far, no one has come forward.
Lynda Kinkade, CNN.
(END VIDEOTAPE)
LAKE: Up next, Twitter is looking into online death threats as the company's founder and employees are targeted by so-called ISIS supporters.
(COMMERCIAL BREAK)
LAKE: The founder of Twitter and the company's employees have been targeted in death threats posted online by people claiming to be supporters
of ISIS. Jack Dorsey and his social media site are coming under fire for removing accounts linked to the extremist group and posts promoting
terrorism.
Business correspondent Samuel Burke joins us live from London with this story. Samuel, how serious should we take these threats?
SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: Well, Maggie, it doesn't appear that these accounts -- the threats on these accounts come from
official Twitter accounts or spokespeople that we're familiar with from ISIS. The group calls itself Al-Nusra al-Maqdisiya, which means supporters
of Jerusalem, and they self-identify as supporters of ISIS.
I recall them because this is the second time in my memory that they've threatened Twitter. Back in September of last year, they
threatened Twitter employees at their San Francisco headquarters, and luckily, that never materialized.
But Twitter is taking this seriously. A spokesperson told me earlier today the following, quoted, "Our security team is investigating the
veracity of these threats with relevant law enforcement officials." We've contacted the FBI, but they aren't comment on whether they're opening up an
investigation.
So, Maggie, I think this shows the complexity of ISIS and its loosely- affiliated or close supporters, not only offline, but also this time in the online world.
LAKE: That's right. And so, Samuel, are the threats still out there? This was provoked because Twitter was taking down posts. Are these images
and threats still readily available online?
BURKE: Yes, these people making these threats specifically said we're upset about the fact that our accounts had been closed down. We know that
all these social networks have become more aggressive about taking down this material.
To answer your question, we first saw these threats on Twitter. Those had been taken down. But it's really a game of whack-a-mole, Maggie. And
as soon as they were taken down on Twitter, they appeared on another social network. So, this is part of the difficulty.
For the first time, we've learned that actually Twitter says the have 100 people working around the clock -- that's a new number that we didn't
know -- trying to take down these type of threats.
But again, even when the threat is against them, they can try and take it down, but it pops up on another social network. Such is the difficulty
of dealing with a group and its affiliates that are as social media savvy as they are, Maggie.
LAKE: All right, Samuel Burke with the story in London. Thanks, Samuel.
Well, the UK government is trying to stop the sale of oil fields in the North Sea to one of Russia's wealthiest men because of sanctions that
don't yet exist. We'll explain after the break.
(COMMERCIAL BREAK)
LAKE: Hello, I'm Maggie Lake. In the next half hour on "Quest Means Business" a year off in the MH370 tragedy, the painful restructuring
continues for Malaysia Airlines.
And Tinder takes a swipe at monetizing. The CEO tells me why users won't mind paying for the app. Before that, here are the top news
headlines we are following for you this hour.
Israel's Prime Minister says his planned speech to the U.S. Congress is not intended to be political or disrespectful to President Barack Obama.
Benjamin Netanyahu is speaking at a pro-Israeli conference in Washington. His speech to Congress on Tuesday is expected to be highly critical of the
U.S. negotiations over Iran's nuclear program.
At least one person is dead and several more w3ounded after an explosion at the High Court Building in Cairo. Egyptian media reports it
was a bomb. The building houses the general prosecutor's office and some of Egypt's most senior courts.
A major offensive is underway to recapture the Iraqi city of Tikrit from ISIS. Government troops backed by aircraft are attacking ISIS
positions from several fronts. They're joined by both Sunni and Shia militiamen. Iran says one of its elite generals is helping oversee the
operation.
Russian authorities have now questioned Boris Nemtsov's model girlfriend for three straight days. The opposition leader was gunned down
Friday night while walking with Anna Duritskaya on a bridge in Moscow. He had been an outspoken critic of President Vladimir Putin.
A man has been shot and killed by police outside a homeless shelter in Los Angeles. Police say they shot the man after he reached for the
officer's gun. They also said he was suspected of robbery. At a news conference a few hours ago, the L.A. Police Chief Charlie Beck described
the incident as an extreme tragedy.
Boris Nemtsov's girlfriend fears the Russian authorities are trying to implicate her in the murder of the Russian opposition leader. Anna
Duritskaya was walking with Mr. Nemtsov on this Moscow bridge Friday night. She says she has been questioned for police by three - -for three days.
Authorities say she's a key witness to Boris Nemtsov's murder and must face further questioning. Her mother told CNN she worries the trauma may
be taking a toll as Diana Magnay reports.
(BEGIN VIDEOCLIP)
DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: There's one key witness in Boris Nemtsov's murder - his girlfriend of two and a half years
- 23-year-old Ukrainian model Anna Duritskaya.
ANNA DURITSKAYA, GIRLFRIEND OF BORIS NEMTSOV, INTERPRETED BY MAGNAY: "I turned around and saw a car -- a light-colored car - but I didn't see
the license plate or the brand," she told Russia's Dozhd TV.
MAGNAY: Her mother in Kiev is desperate for her to come home and concerned about how she's being treated by interrogators. She says Anna
called moments after Nemtsov was shot.
INNA DURITSKAYA, MOTHER OF ANNA DURITSKAYA, INTERPRETED BY MAGNAY: "She was crying and she was saying Boris had been killed and he's lying
next to me. She was in such shock she couldn't say anything else."
MAGNAY: Nemtsov and Duritskaya had been dining together at a restaurant that night. Then the fateful stroll towards home.
I. DURITSKAYA, INTERPRETED BY MAGNAY: "Anna suggested getting a taxi, but Boris didn't want to. He wanted to walk across the bridge. When they
were walking, she was holding his hand in heard a clapping noise. Boris became soft and fell on the ground."
MAGNAY: Nemtsov was more than 30 years older than Anna - protective her mother says of a young model making her name in Moscow. And she was
going out with a man who was a very outspoken critic of the Kremlin. Did that concern her? Was she scared for her own safety? Was she scared for
his safety? Were you scared for her safety?
I. DURITSKAYA, INTERPRETED BY MAGNAY: "She asked him not to be so open, so straightforward, but it was impossible to change him. He was a
strong man who did what he considered was the right thing to do. My Anna was much younger. She's not involved in politics in any way. She just
loved him."
MAGNAY: Mourning the death of her boyfriend and yet not allowed to go home. The hours of questioning are taking their toll.
A. DURITSKAYA, INTERPRETED BY MAGNAY: "For the last three days I've been taken to the Investigative Commission for interrogation with a convoy
of cars and security, and I'm not told why I'm still here or when they'll let me go.
MAGNAY: Her mother in Kiev fearful that her daughter's words may someday be used against her. Diana Magnay, CNN Kiev.
(END VIDEOCLIP)
LAKE: A war of words is breaking out between a Russian billionaire and the British government over who gets to own a number of oil fields in
the North Sea. The U.K. government tried to prevent a deal that gave Mikhail Fridman possession of the oil fields.
Now that field's been finalized and British officials say they'll force Fridman to sell them because they're concerned about the effects of
possible future sanctions against Russia. Friedman says the United Kingdom's actions are not rational. Jim Bolden joins us now form London
with more.
And, Jim, what it is exactly that U.K. authorities are concerned about?
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: Well really they're concerned that these oil and gas fields - mostly gas fields - will be
unused if there are future sanctions against Russia that would involve this company, and the idea then would be of course they wouldn't be able to
invest in these gas fields.
Now this is the first time, I believe, in Europe that we have seen any retrospective if you will - action by a European government - saying we
don't know where this is going between Russia and Europe.
We don't know where sanctions are going to go, so we do not want a Russian company - in this case, a Russian billionaire, very well known in
oil and gas - they do not want him to have control of these gas fields. Not because of him personally, but because they don't know where sanctions
might go.
Now he is the second richest man in Russia according to "Forbes," so he is somebody who can afford this and has bene looking to expand into
Europe, but interestingly the government says here in the U.K., simply, we're not going to allow you to own them. Maggie.
LAKE: He of course - it says he's intent on moving forward and he's going to take them to court and sue them. Presumably he can also afford
the lawyers that's he's going to need to do that. What are his chances and what is he saying?
BOULDEN: Well, I mean, I - when we think about oil and gas fields, you think about they're actually leased, right? You don't buy them forever
and take them away from - you can't move them. This is not a car place. So governments do have alternative control over these - this - areas - and
this area of the North Sea of course would be owned by the U.K. government.
So if he does decide to sue and not sell them to a third party - that's what the U.K. is saying is sell the leases to a third party that
isn't Russian - then it could be very expensive and go on.
Obviously it's one of the interesting areas of the North Sea is dwindling resources and so there are people who are willing to take the
risk in the North Sea where other companies aren't willing, and the fact that Mr. Fridman was willing to when he takes over the RWE - fuel and gas
part of RWE - he's willing he think - you would think - to invest in this area.
Will somebody else step in, a third party, and easily buy these, it'd be interesting to see. And as you say, if you have a lawsuit, it could be
years for it to be settled, Maggie.
LAKE: Absolutely. But what is he like - Fridman? What kind of character -
BOULDEN: Yes.
LAKE: -- is he.
BOULDEN: Well he is very well known. He is very wealthy and he has been very active in Russia even in the early 90s, so he's one of these - of
these men - who've made a fortune during the privatization era. There are photos of him from way back when, even with Mr. Putin and others. So he's
been around a long time. I think it's - what is it - "Forbes" said between $14 and $15 billion, so the second richest Russian on the "Forbes" list in
2014. So a very powerful man as well. Very well known for his stance and donations and things with the Jewish cause. He is Jewish as well. So he
has a lot of fingers in a lot of pies, but he was the chairman of TNK-BP which is a huge oil and gas company that was partly owned by BP as well.
The chairman of his company is Lord Browne who used to run BP. So, again, he's got powerful ties and powerful connections and he clearly wants these
North Sea assets. And there aren't a lot of companies out there who want these North Sea assets. Maggie.
LAKE: It could be problematic and certainly one that we have to leave as `to be continued.'
BOULDEN: Yes.
LAKE: Jim Boulden, thanks very much. Well one year after the disappearance of Malaysia Airlines flight 370 - the future of the search
for the missing aircraft is unclear. We'll have more when we come back.
(COMMERCIAL BREAK)
LAKE: This week marks a year since Malaysia Airlines flight 370 went missing. Twelve months later, there is still no sign of the plane. Family
members of the 239 people who perished onboard are still desperate for answers. Next month government officials from Malaysia, China and
Australia will debate whether or not to keep funding the search.
Meanwhile, restructuring at the airline continues. Even before the tragedies of MH370 and MH17, Malaysia Airlines was struggling financially.
Andrew Stevens reports.
(BEGIN VIDEOCLIP)
(PR CLIP AIRS)
ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: This is Malaysia Airlines latest PR attempt to restore its brand. A 12-minute movie about family and
togetherness. It might be low budget, but it is hitting a nerve. 1.3 million hits on YouTube and counting.
But a year since Malaysia Airlines flight 370 vanished, the airline still has a mountain to climb to restore passenger confidence and its long-
term viability. No airlines has had to deal with two such tragic events in so short a space of time - 370 in March and then the shooting down over the
Ukraine of MH 17 just a few months later.
But well before that, Malaysia Airlines was in financial trouble. Analysts say it hasn't made a profit since 2008, in fact it's lost nearly 1
and a half billion dollars in the five years after the end of 2013. Add to that a first half loss last year of another $250 million in the wake of the
loss of 370.
So what have the investors been making of this? Well take a look at this - this is a fairly bleak picture. Over the past five years, Malaysia
Airlines stock is down 73 percent. That includes a 20 percent slump be4tween when 370 went missing in March and when it was taken off the stock
exchange.
By comparison, take a look at this - that loss of 73 percent compares with the benchmark index here which over the same period was up by 41
percent. So how does this company survive? Analysts say a parent company with deep pockets is a huge help, and that parent is Khazanah, the
sovereign wealth arm of the Malaysian government.
There's also a big restructure plan, and that includes cutting unprofitable routes, changing senior management and most important, cutting
a bloated workforce by about 6,000 people. But since the announcement of that restructure was made, analysts say very little has happened. Why?
Well, the later airlines like every other airline in the world has just gotten a massive financial boost - 50 percent cheaper oil and that say some
experts has taken the pressure off.
(BEGIN VIDEOCLIP)
MOHSHIN AZIZ, AVIATON ANALYST, MAYBACK INVESTMENT BANK: Something really changed between six months ago and right now, and that's in the form
of oil prices. The momentum or the urge, the need to reform in a great hurry is definitely not there anymore.
STEVENS: Khazanah did not return CNN's calls but said in a statement in November that the restructure was on track and that Malaysia Airlines
should be back in profits by 2017. But for that to happen, experts say it will have to be a much smaller, much more regional airline which plays to
its biggest strength and that is its home markets.
AZIZ: People will always support Malaysia Airlines. It is part of our identity. We grew up with it.
STEVENS: But loyalty is one thing. Malaysia Airlines still has that painful restructure to go through to make its survival sustainable. Andrew
Stevens, CNN Hong Kong.
(END VIDEOCLIP)
LAKE: No more missed opportunities from an accidental swipe. Tinder is rolling out new features for a price. The CEO tells me why users are
willing to pay - next.
(COMMERCIAL BREAK)
LAKE: Tinder is betting users will shell out money to find love. It's all part of a new premium service called Tinder Plus. The current
Tinder app uses your location to match you up with potential dates. You either swipe left to ignore or right to show you're interested.
Users who pay for the new app will be able to rewind and revisit potential dates they swiped past if they have any regrets about it. Tinder
Plus also includes a passport features that lets users find potential matches in foreign places that they are about to visit. Earlier I spoke
exclusively with Tinder CEO Sean Rad. I asked him if he was worried about a backlash over introducing fees.
(BEGIN VIDEOCLIP)
SEAN RAD, CEO, TINDER: The core Tinder experience has been free and will always remain free. And the best way to keep a free and amazing
ecosystem is to monetize. We don't expect everyone to use Tinder Plus, in fact, the way we've priced it, it really appears - appeals - to some of our
more power users.
We just - we're adding some value and we think that it's value that people will charge for, but the core Tinder experience will always remain
free.
LAKE: And what makes you think people will pay after this? We've seen this a lot in this sort freemium model -
RAD: Yes.
LAKE: And there are certainly analysts out there already including some from Morgan Stanley who are very skeptical that this generation of
singles is willing to pay for any kind of dating service - including yours. What makes you think people will pay up?
RAD: Well we've soft-launched Tinder in various parts of the world and the response has been amazing and the users are seeing they can access
parts of Tinder that they couldn't before and get a lot of value out of it and they're willing to pay for that value.
So, you know, part of it is we've already tested this and we've already - we've already received signals from users that they love these
features, they're good for the ecosystem and they're willing to pay for them.
LAKE: We've talked about some of the spots where it's the most popular right now - U.S., U.K. and Brazil interestingly. Are there areas
where you find growth to be promising or you see as real potential where you're just getting started?
I know we've had reports from India, from our reporters here about people using it. Where are you seeing the most international growth?
RAD: So, Tinder is the dominant platform in over 56 countries and it's available in over 140 countries. And in 2015, we have our eyes set on
Japan and India and Turkey amongst a variety of other countries. But right now our most prominent international countries are U.K., Brazil, Canada and
Australia and Tinder is growing incredibly fast. In the last 90 days we've doubled our engagement internationally.
(END VIDEOCLIP)
LAKE: Some news just in to CNN. Russia and Ukraine have agreed to a short-term gas deal. If follows trilateral talks between the E.U., Ukraine
and Russia. Naftogaz, the Ukrainian state-owned gas firm has agreed to prepay for gas from Gazprom through the end of March.
Gazprom has agreed to deliver up to 114 million cubic meters of gas each day. Naftogaz has also agreed to guarantee transit if Russian gas to
the E.U.
Now, faint hints of economic recovery in Europe are helping boost GDP in the Seychelles. According to the country's tourism board, the
Seychelles tourism industry is slowly recovering and that is helping the wider economy.
The nation of more than 100 islands was badly hit by Europe's financial woes. Two-thirds of the visitors to the Seychelles come from
Europe and the economy is heavily-dependent on that tourism. Seychelles has also benefitted from recent investments from Russia, China and the UAE.
Sherin Naiken, chief executive of Seychelles Tourism Board joins us now live from London. Thank you so much for being with us. So talk to me
about this recovery you're seeing. How much momentum does it have?
SHERIN NAIKEN, CEO, SEYCHELLES TOURISM BOARD: Thank you, Maggie, it's really nice to be on your show tonight. Actually Seychelles one of the
biggest decisions we've had to take a few years ago was to undergo the macroeconomic reform program.
But it was one of the best decisions that Seychelles could have taken as a country under the leadership of our president. Because as we've seen,
we've gone through the program and we've arised successfully. Today we have a thriving tourism industry and economy has flourished as well.
And, yes, throughout the recession our tourism industry was hit a little bit - Europe being where traditionally where our tourism comes from
naturally suffered a bit, but we're seeing now - especially the beginning of this year it's picking up. It's picking up very nicely and we're very
happy for that.
LAKE: Is it the same tourists that you had before or are you doing more budget travelers? Is it the high-end tourist and holidaymaker that's
coming back faster? Can you kind of quantify where the recovery's coming from?
NAIKEN: Actually we've had to diversify our strategy faced with the recessions, and this is where we've had to look at emerging markets - the
likes of China, the emerging markets in the UAE, South Africa as well as secondary markets which have helped to consulated (ph) the tourism figures.
But also, we've looked at Russia as well. Russia was in our top four market as well. So for us, looking at the emerging markets was part of the
strategy and we're happy we did it. If I can just mention - you mentioned a little bit about whether we had to go for budget traveler - we've
launched the affordable Seychelles campaign part - was part of our strategy as well.
In the U.K. most specifically we've had campaign called "Seychelles - Luxury Within Reach." That was a good campaign actually which did bring to
our potential visitors the message that, yes, for the longest time Seychelles was seen as a holiday destination for the rich and the famous,
but we do have products for every budget in Seychelles at the end of the day.
And we have the small homegrown luxury hotels which we rented as a "Seychelles' Secrets" which is this is within reach for a lot of our
travelers.
LAKE: Well, Sherin, we're thrilled to hear about the recovery and I have to tell you I was very envious looking at the pictures today as I sit
here freezing in New York City tonight. Sherin Naiken, thank you very much for being with us tonight.
NAIKEN: It's a pleasure being with you as well, thank you.
LAKE: Absolutely beautiful place. Well after the break, we'll find out who's in and who's out as "Forbes" releases its billionaires list next.
(COMMERCIAL BREAK)
LAKE: On the day the Nasdaq hit a major milestone, it's only fitting that Bill Gates should once again be confirmed as the world's richest
person. The Microsoft founder is number on the "Forbes" billionaire list for the second year in a row.
Carlos Slim was number two. Other tech giants are moving higher and higher. Mark Zuckerberg is in the top 20 for the first and the youngest
person on the list is someone he tried to buy out - the Snapchat co-founder Evan Spiegel. At just 24 years old, he's already worth 1 and a half
billion dollars. He'll have to hope we're not in the middle of another dotcom bubble.
At 24 years ago Michael Jordan was winning his first NBA championship, but it's not until today that he squeezed his way onto the list and that is
thanks to his ownership of the Charlotte Hornets.
Well stock markets in the United States started the trading week on a tear. The Dow plowed higher to close at a record of more than 155 points
on the day and it was a milestone day on the tech-heavy Nasdaq. The Nasdaq closed at 5,008 - above 5,000 for only the third day in history, and for
the first time in almost 15 years.
Monday's trading yielded mixed results for the markets in Europe however. The FTSE and the DAX ended practically flat. The Paris CAC
dropped 7/10ths of 1 percent while stocks in Zurich tickled up about half a percent. That is "Quest Means Business." Thanks for watching. I'm Maggie
Lake. Stay with CNN.
END
