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Quest Means Business
Apple Watch Will Be Available April 24th; CEO Tim Cook Reveals Apple Watch Details; US Stocks Closer Higher; European Stocks Mostly Lower; US Warns Iran Over Sanctions; Iranian Businesses Hope for Sanctions Relief; Obama Slaps Sanctions on Venezuelan Officials; Venezuelan Government Hopes Fingerprint Scanners Will Prevent Panic Buying; Nepalese Worker in Qatar Meets Untimely Death
Aired March 09, 2015 - 17:00 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 closing bell has rung on Wall Street, with the Dow ending just shy of 18,000. It's Monday, March 9th.
Tonight, going for gold. Apple shows off its most expensive product ever.
Crackdown on Caracas. The US puts sanctions on Venezuela.
And security in the sky. IATA's CEO tells us flying has never been safer.
I'm Maggie Lake. This is QUEST MEANS BUSINESS.
Good evening. Tonight, the clock is ticking for Tim Cook. The release date for the Apple Watch has been confirmed. It will be available
on April 24th for the first customers in nine countries, including the United States, the United Kingdom, and China.
The Apple Watch is the company's fist major new device in years. As he announced the final details in San Francisco, Cook said he's been
wanting a device like the Apple Watch since he was five years old.
(BEGIN VIDEO CLIP)
TIM COOK, CEO, APPLE: Apple Watch is the most personal device we have ever created. It's not just with you, it's on you.
(END VIDEO CLIP)
LAKE: Joining us now from San Francisco is CNN correspondent Dan Simon, who was there for all the theatrics. And Dan, it's always an
enthusiastic crowd inside the auditorium, but what is the sort of general reception? Did the unveiling of some more of these details live up to all
the hype?
DAN SIMON, CNN CORRESPONDENT: I think so, Maggie. But I have to tell you, I think the biggest collective gasp we heard and when they announced
the price of that gold watch: $10,000. But I think on the whole, it was a successful event. You can buy the watch starting out for $349.
These watches, though, pretty expensive when you consider all the other smart watches out there. But no doubt this is the most sophisticated
smart watch on the market. As you said, they'll go on sale on April 24th.
And obviously the stakes very high for Apple and Tim Cook. You pointed this out. This is the first new device that Apple has released in
five years. So, we'll see what happens, but I imagine that you'll see some lines when the watch debuts on the 24th.
LAKE: One of the things about Apple when you compare it to competitors, Dan, is its ecosystem. And they spent a lot of time during
his demonstration today talking about the different things, giving a little bit more details about some of the apps that are going to be available now.
It's really important to them, including a real focus on health.
SIMON: That's right. Health, obviously, a huge component to the smart watch. And I think they're doing a pretty good job there. Pretty
similar, though, to some of the other watches on the market in terms of being able to take your heartbeat and count your steps.
But they do it in a pretty innovate way with the app on the iPhone so you can see what's happening on your smartphone as well as on the watch.
You know, Maggie, I did have a chance to play with the watch for a little bit. Sadly, I did have to give it back. But one of the things that
I thought was pretty neat was the ability to take and make phone calls with your wrist. I can see how that can be pretty handy, especially if you're
just making a short phone call.
I think, though, what won me over, though, is the ability to use the smartwatch as your hotel room key. I travel a lot for work, and Apple has
partnered with Starwood Hotels just for the beginning.
And so when you go to the hotel, you can receive a notification and actually turn your Apple Watch into your room key. Literally it's just
taking your wrist and point it to the door, and voila! Your door opens. So, I think that's pretty cool.
Also, a neat app from Uber, being able to summon a car from your wrist. These are some of the entry level apps that you'll see when the
watch comes out.
LAKE: That's right. And that's just the first ones. We're going to see ones that sort of unleash to the world. They're also talking about
Apple Pay as well, which a lot of people are interested in, too. Dan, when you stack this up against other events they've had, how do you think it
measured up?
SIMON: Good question. It's not -- didn't quite live up to the hype, I think, in terms of the original iPhone announcement or the iPad
announcement. Some of that is because we saw the watch six months ago, they previewed this product. And I don't think it's something that
everybody has to go out and rush and buy. The iPhone is different in that way.
But I do think there's a lot of curiosity about this product. I think early adopters will probably get one, but I think there'll be a certain
number of people who will wait on the sidelines and see how things evolve. Plus, remember, this is Apple, so next year there'll be an even better
product. So, I think you'll have some people waiting as this thing evolves, Maggie.
LAKE: Yes, you do sense that you want -- we're going to have to wait and see when it's out there in the real universe, whether people are
interested in it or not when they see some of those early adopters.
And we did get some details, so to a certain extent, some of the news was out already. But it'll be interesting to watch nonetheless. Very
important for Apple. Dan Simon there in San Francisco for us. Thanks, Dan.
Well, Tim Cook tweeted that he slept in this morning to get extra rest before the Apple event. He slept in until 4:30 am. This guy is an early
riser, so you know this was important. This is no doubt one of the biggest days of Tim Cook's career, because it's the details he announced that will
determine if the Apple Watch is going to be the next big thing or the next big flop.
The least-expensive model, called the Apple Watch Sport, as Dan mentioned, will cost $349. Now, the prices go up quickly from there. A
stainless steel model will start at $549. And depending on the type of watchband it's paired with, could cost as much as $1,099.
And one more thing. Apple will offer an ultra high-end 18 karat solid gold version that will start as $10,000.
Sarah Halzack is retail reporter at "The Washington Post," and she joins us now live on the program. Thanks so much for being with us, Sarah.
It's -- there's a lot of talk about this, but Apple has a lot of experience with technology.
You saw in the presentation today they were talking about the apps and everything that it could do. But this has got to pass muster as a fashion
statement as well, doesn't it?
SARAH HALZACK, RETAIL REPORTER, "THE WASHINGTON POST": It sure does. And so, that's going to be Apple's chief challenge here. They're used to
marketing their devices based on functionality alone. That's the reason that you go out and buy an iPhone or an iPad.
But a watch, because it's something that you wear on the body, it's inherently a style piece, and people use it as a means of self-expression.
And so whether Apple's going to be able to convince people that this is something they should have on their body and is chic and not geeky remains
to be seen.
LAKE: And you know, Sarah, we saw a pretty wide range here, trying to offer something for everyone. Can Apple be mass market but also be luxury
at the same time? They've done a pretty good job of walking that line in their other product categories. Can they do it when we're talking about
something that is wearable?
HALZACK: Sure. So, many of the retail experts I spoke with think that this will certainly not be a turn-off for their mass market consumer.
One analogy that was given to me was it's sort of like if Ford makes a $150,000 sports car, that doesn't turn off the buyer of a Ford Focus, it
simply just gives an aspirational and lux sheen to the whole showroom, right?
The tricky thing is going to be can they entice that luxury consumer? When people are buying a five-figure watch, they're typically used to being
in a secluded private showroom getting one-on-one service. They're not used to being in an environment like the Apple Store, which is full of
hustle and bustle.
And so, that's led to some speculation that there might have to be some changes in Apple Stores to accommodate that shopper.
LAKE: Right. Well, they brought in, of course, a retail specialist who knows a thing or two about catering to luxury. Burberry was an amazing
turnaround with Angela Ahrendts.
HALZACK: Sure.
LAKE: And she's got a hand in retail. One thing that I noticed that I wondered about. Whenever I've talked to people when they're talking
about luxury or buying luxury, everybody likes bespoke or something that's special to them.
And the one thing about this watch is it does look like it's customizable. This way, technology would be a good pairing with that
luxury market, because you can kind of make it special to yourself. So, presumably that might help give them a leg up with this higher-end market.
HALZACK: Yes, you make a good point there. This ability to have individuality and customization has proved to be really important to luxury
shoppers who, they don't want to blend in with everybody else. They want to stand out.
And actually, when you look at companies like Michael Kors and Gucci, this was the problem that they've had recently. Their products have become
too ubiquitous, and so these really super high-end shoppers have turned away from their brand because they just feel too ordinary.
Now, Apple, with them getting this ability to have customization, may be getting around that and offering people a way to get on the Apple train
but still feel like they're doing something unique and individual.
LAKE: Sarah, the bar is really high here, isn't it? Because there are so many wearables out right now, and even though we all sense that
there's possibility and opportunity.
And eventually things are moving this way, there hasn't been anything that we all felt like we need to have, or that has really sort of grabbed
that mass market and made them make the switch. That's really what Apple has to do here, don't they?
HALZACK: Yes. So, Apple has a knack for -- before the iPod came out, there weren't lots of people sitting around saying, gee whiz, I wish I
could have my whole music collection in my pocket. But once they brought it to us, we didn't know how we could live without it, right?
And so, that's what they're going to have to do with this watch. There haven't been people clamoring to have their e-mail on their wrist or
to have a different variation on some of these health functionalites that's offered already by Fit Bit or Jawbone.
Apple's going to have to convince us that this is something that we need in our lives that's going to make our day more efficient. And if
they're able to do that, they may be able to sell the 20 to 22 million of these things that they're expected to sell this year.
LAKE: And in the process, crack open the wearable market. A lot of dollar signs attached to it. Sarah, so great to catch up with you tonight.
Thanks so much for being with us.
HALZACK: Thank you, Maggie.
LAKE: Watchful investors gave Apples a thumbs up. Shares kicked up nearly a half of one percent. Stocks overall climbed higher in the States.
After a little bit of a shaky start, the Dow rallied 139 points and the S&P finished four tenths of a percent higher as Wall Street's bull market
continues.
Stocks in Europe fell during Monday's training, though. London and Paris lost over -- about a half a percent each. Issues surrounding Greece
sent markets lower. There are concerns among officials that reforms aren't coming along quickly enough. Frankfurt was the outlier, and the DAX ticked
up about a quarter of one percent.
Coming up on QUEST MEANS BUSINESS, Venezuela's government is hoping fingerprint scanners will help prevent he chronic shortages of basic goods
across the country. More after the break.
(COMMERCIAL BREAK)
LAKE: The White House says it may be years before sanctions against Iran are relaxed, even with a deal on its nuclear program. Republican
lawmakers have also issued a warning to Iran over the possible easing of sanctions. Speaking to reporters earlier, White House press secretary Josh
Earnest said more is needed from Iran.
(BEGIN VIDEO CLIP)
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: We want to see a demonstrated commitment on Iran's part to living up to the agreement before
we contemplate offering relief from the statutory sanctions regime that Congress has put in place.
And I'm not just talking about over the course of weeks or months. I'm talking about years. We would want to see Iran demonstrate its
commitment to this agreement for years before we would envision a scenario where Congress would take away the sanctions that were so important to
getting Iran to the negotiating table in the first place.
(END VIDEO CLIP)
LAKE: So far, sanctions have been the main took the West has used to tighten the screws on Iran over its nuclear program, which Tehran claims is
entirely peaceful. Various industries are feeling the pinch of those sanctions, as CNN's Fred Pleitgen found out during a visit to Tehran.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): The mechanics at this garage in Tehran take pride in their work. Whether it's a wreck or a breakdown, they say they can repair pretty much
anything.
But the international sanctions against Iran often hold them back. They have to order most parts through middlemen, which is expensive and
time consuming. But owner Nabi Ashtiani says he's hopeful all that could change soon.
"We will provide even better service for our customers," he says. "We will repair higher-tech cars here. For sure when the sanctions are lifted,
we will have much better opportunities."
Other sectors are gearing up for possible sanctions relief as well. Two hundred construction workers are currently employed building the Behest
Mall and office building. Owner and building designer Hamid Sahih says he could get the complex done even faster if he didn't have to deal with
restrictions ordering and paying for goods.
HAMID SAHIH, HANDS CONSTRUCTION: Usually, a shopping mall like this should be taking about three years to build. But right now, you're already
in year three. So, it takes a lot of years to do it.
PLEITGEN: Make no mistake. Iran's constructions sector is already booming, but companies say things could heat up considerably if a nuclear
deal comes through.
PLEITGEN (on camera): The lifting of the sanctions wouldn't only help Iranian firms, it would also open this country up to investment from
outside, and many believe that the potential here is gigantic.
PLEITGEN (voice-over): Iran and the US acknowledge there still is a long way to go before a potential agreement can be reached. The West fears
Iran is seeking an atomic weapon while Tehran says its nuclear program is only for peaceful purposes.
The investment firm Turquoise Partners is trying to attract investment into Iran. Its CEO tells me many foreign companies are already making
inquiries.
RAMIN RABII, CEO, TURQUOISE PARTNERS: I'm sure as soon as the sanctions are lifted, especially banking sanctions, you're probably going
to see the floodgates opening and hundreds of millions, even billions of dollars coming into the Iranian market.
PLEITGEN: But for now, the mechanics at the garage are still using their old tools, trying to make up for a lack of high-tech equipment,
hoping things will change soon.
Fred Pleitgen, CNN, Tehran.
(END VIDEOTAPE)
LAKE: The United States slapped economic sanctions on seven Venezuelan officials Monday. President Obama declared Venezuela a national
security threat. He said its human rights abuses, corruption, and attempts by the government to intimidate its political opponents.
White House correspondent Michelle Kosinski is live from Washington. And Michelle, the relationship between the two countries has been tense for
some time. Why now? Why sanctions now?
MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Just based on what has been going on. There's been a review of this. Today, White House
officials said that it does take some time to pinpoint the officials, to go through the processes. They have to work with the Department of Treasury
on this.
And they chose seven people, officials and former officials -- we're talking a prosecutor, the director of the national police, the director of
national intelligence -- to freeze any assets that they have in the US and prohibit others from doing business with them.
The question mark here is what effect will this really have? It's likely mostly symbolic at this point. It will have an effect on those
individuals. But the US has also gone a step further and denied entry, basically refused visas, to a total of 56 people from Venezuela, sending a
message on what they portrayed as a scathing review they gave of the state of affairs in Venezuela right now.
Cracking down on protests, making arrests of political opposition. What they term "significant violence," serious human rights abuses,
curtailing freedom of the press, et cetera. They went on and on, detailing the situation there and how the US now is taking this very seriously, as
well as taking some action, Maggie.
LAKE: Michelle Kosinski, live from the White House. Thank you, Michelle.
Supermarket chains across Venezuela have agreed to install fingerprint scanners in their stores. Twenty thousand of the scanners will be rolled
out in food stores across the country. The government hopes the move will prevent panic buying and shortages of basic goods.
Venezuela's currency is sliding amid rapid inflation. The bolivar has weakened more than 30 percent against the dollar already this year. And
the country's economy is taking a major blow from low oil prices. Venezuela's foreign minister insists the current reliance on oil is working
beautifully. Delcy Rodriguez said the government will respond to the US sanctions soon.
(BEGIN VIDEO CLIP)
DELCY RODRIGUEZ, VENEZUELAN FOREIGN MINISTER (through translator): Regarding the United States, we don't want to involve international
policies. We will soon give Venezuela's response on the scope of these statements. For the time being, we will follow this beautiful cooperation
mechanism that is Petrocaribe.
(END VIDEO CLIP)
LAKE: Kathryn Rooney Vera is director of macro economic research at Bulltick Capital Markets. She joins me live from Miami, Florida. Kathryn,
good to see you again. When we're talking about these sanctions, Michelle mentioned the question is how effective they will be. Venezuela's so
isolated economically already. Will this have an impact on their economy?
KATHRYN ROONEY VERA, DIRECTOR OF MACRO ECONOMIC RESEARCH, BULLTICK CAPITAL MARKETS: Michelle is right, Maggie. This is absolutely symbolic.
But it's important to be symbolic, because it's impressive to me how largely silent the world has been in the face of daily infractions on human
rights in Venezuela.
We have political arrests for really no reason at all except for opposition to the current administration, Maggie, which has really gone
from being authoritarian to -- it's scaling this or ramping this up to a tyrannical type of governing administration.
Even -- this is really going to another level. So, I think it's important for the United States to come out and say, you know what? This
is not right. Human rights infractions, political imprisonment.
We have Leopoldo Lopez, who is the head of the opposition, Maggie, he's been in jail for a year. The democratically-elected mayor of the
capital of Venezuela, Caracas, is also in jail.
You have assembly members, about half of them elected by the opposition since 2012 that have legal proceedings against them. Really,
this is a full-scale crackdown on anyone who voices an opposing opinion to the Venezuelan government.
LAKE: You're right, Kathryn, there hasn't been much said. And we're not hearing an awful lot from other neighbors or other leaders across Latin
America, either. There was a time when Venezuela would have turned to others, and Cuba comes to mind.
This is happening, these US sanctions, at a time when relations between Cuba and the US are improving and moving in the other direction.
Does Maduro have options in terms of addressing the economic situation, as dire as it is, from any other neighbors in Latin America?
ROONEY VERA: It's quite frankly appalling that there has been no voices, no strong voices coming out from regional leaders. So that's,
again, why it's important for the United States to come out with a voice. There hasn't been one from Latin America.
This is a classic example of how a strongly-socialist government or a government-run economy has been a brutal failure. So, as Michelle noted,
Venezuela is engaged in hyper inflation, large-scale scarcities. We all know about the lack of toilet paper, basic food items, medical supplies.
This is a direct result of government polices. So, price controls, capital controls, currency controls. It's exactly what's going on.
There's very little private investment. The government has nationalized most of the sectors of the economy.
Oil production is declining in double digits over the past ten years. So, Venezuela is finding itself largely lacking in recourses. It needs the
United States way more than the United States needs Venezuela.
So, that's an important thing to take away from this, Maggie, that this shows these increasing sanctions against Venezuelan authorities show
the less dependence the US has on Venezuelan oil. But Venezuela really needs the US. It's one of only two if not the only cash buyer --
LAKE: Right.
ROONEY VERA: -- that pays full price for Venezuelan crude.
LAKE: Kathryn, I know investors, as you mentioned, many largely staying away, very little private investment. But we are watching to see,
a lot of people thinking a default if we stay in this situation is all but inevitable. What do you think about that, and what would be the timing of
that if it were to happen?
ROONEY VERA: Well, you have a big payment coming up in October of this year. Our view is that if oil does recover due to the diminishing
supply coming out of US production, then Venezuela could muddle through. That's our base case scenario.
We don't expect oil to fall through the floor. If oil takes another leg down, then Venezuela is certainly in dire straits as it is already.
But we think that they are relying and, indeed, receiving some financing from China and their buddies in China and Russia. And they can be counting
on kind of creative ways to finance themselves.
But what Venezuela really needs is a mega devaluation and more economically sound policy, to which really we all know are not going to
happen in the near term.
LAKE: Certainly a very difficult situation. Kathryn Rooney Vera from Bulltick Capital Markets, thanks so much for joining us tonight.
ROONEY VERA: Thank you, Maggie.
LAKE: Well, still to come, dying for a better life. We look at the plight of some of Asia's migrant workers.
(COMMERCIAL BREAK)
LAKE: Every year, thousands of migrant workers head to foreign shores in search of work. In Qatar alone, there are more than 350,000 Nepalese
workers, making them the second biggest community after Indians. Unfortunately, not everyone makes it safely back home. CNN's Sumnima Udas
reports from Nepal.
(BEGIN VIDEOTAPE)
SUMNIMA UDAS, CNN INTERNATIONAL CORRESPONDENT (voice-over): Once the symbol of hope and opportunity for so many Nepalis, now a harbinger of
tragedy. Nepali authorities say every day, an average of three to four coffins arrive from the Middle East. Every other day, a coffin from Qatar
bearing the bodies of Nepali migrant workers.
(MAN CRYING)
UDAS: When 38-year-old Kishan Dels's (ph) body arrives in this village in southern Nepal, unbearable pain.
(MAN CRYING)
(CHILDREN CRYING)
UDAS: The wailing went on for hours. Kishan was the only breadwinner for his family of ten, his father tells us.
(WOMAN CRYING)
UDAS: Desperation forced him to sell his only piece of land and travel to Qatar eight months ago. He is still in debt, an all-too-common
story in Nepal, one of the world's most impoverished countries, where some 1500 Nepalis leave every day in search of work.
UDAS (on camera): The one thing that really stands out is just how few young men are in this village. The majority who are of working age
have gone to places like Qatar and the rest of the Middle East, leaving only the women, the elderly, and the children behind.
UDAS (voice-over): Human labor is Nepal's biggest export. The money they send back to their families accounts for some 25 percent of the
country's GDP. The majority are illiterate and unskilled, unaware of their rights. Easy targets for exploitation.
"Of course it feels like prison. Nobody likes it, but we have no choice," Kishan's younger brother, Bishan (ph), says. Bishan, too, works
in Qatar. He's helped build some of the 2022 World Cup infrastructure.
UDAS (on camera): So, he's just showing me the clothes his brother used to wear while he was working as a construction worker in Qatar.
UDAS (voice-over): How Kishan died is still a mystery. Official data shows half of those who come back in a box died of heart attacks. The rest
from workplace accidents and suicide. Nepali authorities say ten percent of the laborers who work in Qatar are exploited, oftentimes by middle men
who themselves are Nepali. So Qatar is not solely to blame.
But the host of the 2022 FIFA World Cup, once considered the land of dreams by so many Nepalis, now dubbed the Desert of Death.
Sumnima Udas, CNN, Tansen, Nepal.
(END VIDEOTAPE)
LAKE: CNN has reached out to the Qatari and Nepali governments for their response to our report. In a written statement, the Qatari
government said, "While the vast majority of workers in Qatar are fairly treated, we recognize that a minority are not. That is why we are
reforming labor laws and practices."
Qatar also says approximately 400 Indian and Nepalese workers die annually in Qatar, but that there have been no fatalities on World Cup
project sites. Nepali officials tell CNN that while there are no statistics on how many deaths occurred at World Cup sites, there is a need
for thorough investigation. CNN will continue to report on this matter.
And we'll be right back with more in just a moment.
(COMMERCIAL BREAK)
LAKE: Hello, I'm Maggie Lake. In the next half hour on "Quest Means Business," the head of IATA tells us why the search for the missing
Malaysian Airlines plane must go on.
And McDonald's faces the music. I'll speak to the band who refused to play a promotional gig for free. Before that, here are the top news
headlines we're following for you this hour.
Iraq's military said Tikrit could be liberated from ISIS in just a matter of days. Troops and militiamen are surrounding the city from all
sides and are now closing in. They've advanced 80 kilometers in just the past three days.
Four people have been arrested in connection with the Islamist attacks in Paris in January, including a French policewoman. The four are believed
to have connections with Amedy Coulibaly who killed four hostages in a grocery store shown here before he was shot by police. The attack followed
the one on the office of the French satirical magazine "Charlie Hebdo."
Hundreds of people have packed into the State House in Wisconsin to vent their anger over the shooting of an unarmed black teenager by a white
policeman. Nineteen-year-old Tony Robinson was shot on Friday evening. Police say he attacked the officer who shot him.
Students at the University campus in Oklahoma have been protesting against a fraternity video using racist language which emerged over the
weekend. It showed members of the male social club on a bus chanting that they would never let a black person into the group. They used a racial
slur and referenced lynching. The university's president joined the protest and has expelled the fraternity, giving them until midnight to
remove their possessions from the campus.
(BEGIN VIDEOCLIP)
DAVID BOREN, PRESIDENT, UNIVERSITY OF OKLAHOMA: As a people, we can't remain silent. When people are racist, when people violate people's
rights, when people hurt people in this way, we can't remain silent. We - all of us -- wherever we are, -- have to speak out against it.
(END VIDEOCLIP)
LAKE: Apple has announced its new watch will be available from April 24th in nine countries including the United States, the United Kingdom and
China. The battery will last up to 18 hours. The cheapest watch on sale will cost $350. The more expensive gold model will start at $10,000.
(BEGIN VIDEOCLIP)
TIM COOK, CEO, APPLE: With a built-in speaker and microphone, you can receive calls on your watch.
(AUDIENCE APPLAUSE)
COOK: I have been wanting to do this since I was five years old and today it's finally here!
(AUDIENCE APPLAUSE)
(END VIDEOCLIP)
LAKE: Toxicology tests are being carried out after a show dog was poisoned to death. The three-year-old Irish setter named Jagger died after
he returned home to Belgium last Friday. It was just one day after taking second prize in his class at the Crufts contest in England.
2014 might have gone down in history as the year of very high-profile airline accidents, but it turns out it was the year they actually hit an
all-time low. According to the latest IATA report, there were 12 fatal accidents in 2014 compared to 16 in 2013 and an average of 19 over the
previous five years.
But looking at fatalities, 641 people were killed in the plane crashes last year compared to 210 the year before. IATA CEO Tony Tyler said that
despite a series of tragedies, overall numbers indicate that airline safety is improving. He also told CNN's Andrew Stevens that many airlines have
already taken steps to restore passenger confidence.
(BEGIN VIDEOCLIP)
TONY TYLER, CEO, INTERNATIONAL AIR TRANSPORT ASSOCIATION: A lot of airlines are already doing much more on their own initiative to track their
aircrafts and make sure that they know in real time where every airplane is at all times.
ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: Do you think there needs to be a little bit more urgency in this now given the fact that we still don't
know what happened to 370 and the fact that there are airlines that I guess are still operating with no changes?
TYLER: The industry's getting on with this as quickly as it needs to. Bear in mind, this was a very rare event and although -- it's not of course
every flight by any means, that goes outside normal radar coverage. I mean, this is a very, very unusual event.
STEVENS: Is there a next generation -- I believe that, you know, space-based for example -- is there a next step which will -- a quantum
leap if you like - in how to track and keep an eye on aircraft around the region (ph)?
TYLER: Yes, there's a number of new technologies being developed which will greatly assist the tracking issue, and one that the industry is
very excited about is the method of what's called space-based ADS-B - pardon the jargon. This will be a technology which will involve a lot of
low-orbiting satellites which will be able to pick up the transponder signals from all commercial aircraft and will be able to track.
STEVENS: So what's the timeline on this? Are we looking at the next five years this could be introduced?
TYLER: We're told that within the next three years the system will have global coverage.
STEVENS: How important is it to the airlines that 370 is found?
TYLER: It's very important. Clearly the industry depends on the confidence of the traveling public -- and it is a very safe industry, --
but a mystery like this does need to be solved in order for people to feel confident ultimately that they can safely travel by air.
STEVENS: Does it worry you then in that case when you hear the Australian prime minister - and let me quote from what he said is that, "I
can't promise this search will go on at this intensity forever." Are the airlines concerned, is IATA concerned that the search actually may end
without 370 being found?
TYLER: I think it's reasonable for those conducting the search to manage their resources in a way that is sustainable. The important thing
is that the search does go on and that the aircraft is found, and I'm confident that that is what will happen.
(END VIDEOCLIP)
LAKE: And you can read more about that interview with Tony Tyler and plenty of other stories from the world of air travel on our website. Just
go to CNN.com/travel.
Well a new adventure has begun and it's one that may hold the key to changing aviation as we know it. This plane, powered only by the sun's
rays, has landed in Oman, completing the first leg of its five-month journey around the world. CNN's Amir Daftari was in Abu Dhabi for the big
takeoff.
(BEGIN VIDEOCLIP)
AMIR DAFTARI, CNN CORRESPONDENT: The final touches to the world's first - a Solar plane getting ready to fly into history.
We're in the early hours of the morning here and this aircraft (AUDIO GAP) two/too (ph) is being pushed out onto the tarmac, ready to embark on
its ambitious `round-the-world journey, powered purely by nature.
But once out on the runway, delays. Technical problems and poor visibility mean the plane, with more than 17,000 solar cells built into its
wings, has to sit idle. Then after an hour, the all clear. Twelve years of hard work come down to this single moment. Then, takeoff -- without
using a single drop of fuel.
But this is no flight of fancy. The pilots believe this is the future of aviation. And ahead of the big day, their anticipation was soaring.
BERTRAND PICCARD, CO-PILOT: Nobody has done it before and we don't know exactly if it's possible or not honestly. We have to try it. Like
every new thing in history, you have to try it.
DAFTARI: And history should be made in just a few months when they're set to land back in the UAE capital. But how does it all work?
ANDRE BORSCHBERG, CO-PILOT: This wing is the largest that you can find. I mean, it's bigger than the wing of a 747. So we're propelled by
electric motors, so we have four gondolas. In each we have a motor and we have a set of batteries which will help us to fly through the night.
In a force (ph) on the top of this wing we have solar cells and that's the source of energy.
DAFTARI: For Swiss co-pilots, Bertrand Piccard and Andre Borschberg, the journey will undoubtedly be a record-breaking show of technology and
invention.
They'll share grueling shifts in a tiny cockpit with few comforts, making the attempt a mental challenge too.
BORSCHBERG: The entertainment in that cockpit is the beauty of the world when you fly with no fuel, no pollution, no noise and you just feel
the privilege you have to fly the most extraordinary plane in the world.
DAFTARI: The 35,000-kilometer trip will take place over 12 stages - bunny-hopping from cities like Nanjing in China to Phoenix, Arizona. And
until it's returned back here, the Solar Impulse team will be hoping that the sun just keeps on shining. Amir Daftari, CNN Abu Dhabi.
(END VIDEOCLIP)
LAKE: After the break, a new report claims the top officials in international cycling protected and defended Lance Armstrong despite doping
suspicions.
(COMMERCIAL BREAK)
LAKE: International cycling officials are coming under scrutiny after a new report claims Lance Armstrong was given special treatment despite
doping concerns. Cycling's fallen star was allegedly exempted from rules and wasn't given certain tests. Armstrong's doping scandal shook sponsors'
confidence in the sport.
In 2012, long-time cycling sponsor Rabobank pulled out of the sport on concerns that professional cycling was tainted. Nike terminated its
contract with Armstrong after the company saw the extent of the doping allegations against him. Nike is among the world's biggest spenders on
athlete endorsement deals. And Anheuser-Busch also broke ties with Armstrong.
Nigel Currie is a sports sponsorship consultant and he joins me from London. via Skype. Nigel, thanks so much for being with us. What do you
make of this report and will it continue to hang over the sport?
NIGEL CURRIE, SPORTS SPONSORSHIP CONSULTANT: Well, yes, I think it will and it's yet another example of cycling delivering a lot of promises
about certain things and doping in particular and not delivering.
It just goes on and on with cycling -- every time we think they've got their act together, something else like this comes out which, you know,
that says otherwise. So, it's extremely damaging to the sport and very, very damaging for the sponsors.
LAKE: And what position does it put sponsors in and had they started to come back to the sport? Had we seen some recovery? And how much of a
setback will this be?
CURRIE: Well I think it's a big step back because cycling is incredibly popular. As a participation sport, it's become huge. You know,
more and more people have set into it for their fitness - it's really growing in that area. It means that the top of the sport's been taking a
beating and stoned (ph) away and, here again, we're in another situation where there is a massive setback for the sport.
LAKE: And that is a shame for both the sport and of course those athletes, many of whom I'm sure could really use that sponsorship. Nigel,
thanks so much for being with us tonight. Nigel Currie.
Well, fast food giant McDonald's has been accused of trying to exploit bands by refusing to pay them to perform.
(BEGIN VIDEOCLIP)
(MUSIC PLAYS)
LAKE: That's Ex Cops, the band that wrote the scathing Facebook post at the heart of this controversy. They claim that McDonald's offered them
additional exposure in exchange for playing at a festival for free.
In a statement to "Rolling Stone" magazine, McDonald's said that they'd done nothing wrong, saying, quote "We follow the same standard
protocol as other brands and sponsors by inviting talented and emerging musicians to join us. #slownewsday".
Amalie Bruun is the lead singer of Ex Cops and she joins us live from Los Angeles this evening. Thanks so much for being with us, Amalie. What
do you make of that response from McDonald's?
AMALIE BRUUN, EX COPS: Thanks for having me. What do I make of it? I make of it that they're not quite up to date with how the incident works
and that people actually do care about this thing because it's not just about an indie rock band. It's a reflection of a perhaps bigger problem in
America or the world.
LAKE: And what bigger problem is that that you're referring to? I'm assuming when it comes to music and how artists are paid?
BRUUN: That amongst other things, yes. Musicians have been sort of told to accept no pay in many situations, but there's a whole generation of
interns and lots of other young people that are being taught that they should not be paid for their work or valued.
LAKE: Yes, it's - McDonald's made this reference that they're just doing what their peers do. How does this work when you're at a festival.
This was - this was South by Southwest. How does it work when you're at a festival like this? Is it common for brands or companies to offer exposure
in return for pay and how do you find that works for you if it's true?
BRUUN: Well, here's the thing. We're not against working with brands at all. We are being paid by the brand showcases that we are doing at
South by. If you're doing a showcase for a smaller music block - for example, yes it is normal to play for free and for exposure and for the
fans that you actually are there to reach out to. But for a corporation that's worth billions of dollars, it is pretty unheard of. They took it to
the next level by not offering - zero, any pay whatsoever. Not even one dollar.
LAKE: Yes, and based on their response that you're getting to the Facebook page, it's irritating a lot of people - not just - not just
yourself. There has been a lot of controversy, hasn't there lately, with the advent of streaming and of technology about how musicians get paid and
whether they're adequately paid. How do you feel about some of these innovations? Does it level the playing field and does it give you
opportunity? Or is it harder to make a living as a musician these days?
BRUUN: That's a hard question to answer. I believe there - it can be argued that it's constructive for music and art that there isn't as much
money and greed in the music industry as there was perhaps 20 years ago. That and I think the incident has opened up for a lot for a new artists -
us - you know, among others. But it is a little hard if the next thing we're supposed to accept now is not being paid for our live shows. Because
that is our job - we are there to play and create music.
LAKE: And that is often one of the areas what - that - musicians rely on and we know that. Well, Amalie, thank you for sharing your story. It
certainly struck a chord with an awful lot of viewers out there. We appreciate you joining us tonight. Amalie Bruun from Ex Cop.
BRUUN: Thank you very much.
LAKE: Still to come, a ship too big for any port in the U.S. has made its way to the U.K. CNN gets up close and personal with the largest
container ship on the planet.
(COMMERCIAL BREAK)
LAKE: The world's biggest container ship is now in the U.K. The MSC Oscar is 395 and 1/2 meters long - so long you could part five Boeing 747s
on its deck - five. Now if you sit on the ship on its end, it would be four times the height of Big Ben. It would even be taller than the Shard
in London - Europe's tallest skyscraper .
CNN's Jim Boulden was at the port of Felixstowe when the MSC Oscar sailed into port earlier Monday. He sent us this report.
(BEGIN VIDEOCLIP)
JIM BOULDEN, CNN CORRESPONDENT: It's hard to comprehend just how big the MSC Oscar is as it moves its way into Felixstowe in Britain's east
coast. This is the first of this size, but there are many more being built.
But as the Oscar docked, it's easier to take in why it's so special. It's nearly 400 meters long with towers of containers. It is the world's
largest container ship.
We've come out onto the water to try to get the sense of scale of the MSC Oscar. It's nearly 400 meters long, it is the largest container ship
in the world. It can handle some 19,200 of those containers.
There aren't many ports or canals that can handle these mega ships. The Oscar cannot currently dock in the United States.
But Felixstowe's owners were ready at the cost of around a half billion dollars.
CLEMENCE CHENG, CEO, HUTCHISON PORT UK: This berth was opened in 2009 and we anticipate what our customers is going to do but we also work very
closely with them. And so we know that they are going to be coming at certain stage.
So this terminal's actually 80 meters future- proof, so if parcel (ph) size go up we can handle them as well.
BOULDEN: Many more Oscar-sized vessels are under construction with plans on the drawing board for ships that can carry 20,000, even 22,000
containers. On the bridge of the Oscar, the captain told me he does not want to see bigger ships. You think they can go much bigger?
GIUSEPPE SIVIERO, CAPTAIN, MSC OSCAR: No, I don't care to know.
BOULDEN: (LAUGHTER).
SIVIERO: They're asking for 20,000/22,000.
BOULDEN: Yes.
SIVIERO: Now the problem after in these ships, when you go in a seagoing situation and when you have bad weather -
BOULDEN: Bad weather.
SIVIERO: That's right.
BOULDEN: In a rare interview, the CEO of MSC who named the ship after his eight-year-old son Oscar, says there is a good reason to go so big
though they do cost more than $150 million apiece.
DIEGO APONTE, CEO, MEDITERRANEAN SHIPPING COMPANY: The MSC Oscar will be - I'm proud to say - will be the most efficient vessel in the planet.
It will be extremely environmental friendly and not only you can carry 35 percent more cargo onboard the ship, but you will also consume 35 percent
less fuel and therefore reduce also your CO2 emission by 35 percent. So the efficiency gain are huge.
BOULDEN: In the `90s, the biggest ships carried fewer than 7,000 containers. Now it's bumping up to 20,000. Felixstowe Port for one says
it's future-proofed and ready even if bigger ships come calling. Jim Boulden, CNN Felixstowe, England.
(END VIDEOCLIP)
LAKE: The world's largest advertising firm WPP said it had another record year in 2014. The British company says income rose in spite of
currency fluctuations working against it. Pretax profit was up 12 percent to nearly $2.2 billion. The company says there was strong growth in all
sectors, especially North America. And it says it made a good start to 2015 with revenue up more than 6 and 1/2 percent in January.
WPP's chief executive Sir Martin Sorrell told Nina dos Santos the company is capable of continuing last year's growth.
(BEGIN VIDEOCLIP)
SIR MARTIN SORRELL, CEO,, WP (ph): Despite currency headwinds of - what - 6 to 7 percent, we had another record year in our 29th year. Are
they sustainable? I think the answer's yes. I think we'll see in 2015 a very similar pattern to 2014 -- none of those big events like World Cups or
Olympic Games or presidential elections to boost spending.
But by and large in the same pattern. Maybe a recovery in Western Europe, the U.S. and China driving the world's economy, issues in Asia and
Latin America, but overall they're still faster growth markets. And from a functional point of view, media and digital continue to grow faster than
the rest of our business and I think that will drive the growth. So pattern very much the same in '15 as '14.
(END VIDEOCLIP)
LAKE: From the Dow at 6,500 points to over 18,000, it has been a truly historic time for U.S. markets. We'll celebrate this bull's
impressive six-year run after the break.
(COMMERCIAL BREAK)
(BIRTHDAY MUSIC PLAYING)
LAKE: Here at "Quest Means Business," we'd like to wish a very happy sixth birthday to the bull market. And it was six years ago today on March
9, 2009 that the Dow Jones bottomed out at less than 6,500 points. The bear market at the time had clawed away over half of the index.
Though few investors knew it at the time, there would be relief on the horizon. With the Dow now standing close to 18,000 points, the bull market
that was born has stampeded its way into the history books and is the fourth longest ever.
Well the bulls were certainly out in force on Wall Street today. If you take a look, the Dow rallied 139 points, finished - S&P finished up
4/10ths of a percent higher. Apple finished slightly higher as well after its big Apple Watch announcement.
Different story however in Europe - stocks fell during Monday's trading. Issues surrounding Greece sent markets lower. There are concerns
among officials that reforms aren't coming along quickly enough. Frankfurt was the outlier - the DAX ticked up about a quarter of 1 percent.
And that is "Quest Means Business." Thanks for watching, I'm Maggie Lake. Stay with CNN.
END
