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Quest Means Business
Week of Volatility for US Stocks; Russia Cuts Interest Rates; Kremlin Dismisses Putin Illness Rumors; Weak Euro Boosts European Stocks; EC President Meets With Greek Prime Minister; Ireland Has EU's Fastest Growing Economy, Anti-Government Marches in Brazil; Tomorrow Transformed: Mobile Payment Vending Machines
Aired March 13, 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)
POPPY HARLOW, HOST: Stocks lead investors on a merry dance. That was the sound of the bell, the closing bell on Wall Street as the Dow tumbles
once again. It is Friday, the 13th of March.
Tonight, what goes up comes crashing down. Markets seesaw to another steep loss.
Russia cuts rates as the president appears to go MIA.
And from one friend to another. An amazing story of how Tim Cook offered his own liver to Steve Jobs.
I'm Poppy Harlow and this is QUEST MEANS BUSINESS.
Good evening. Tonight, Friday the 13th brings a sea of red to the US stock market. The Dow closed down 146 points after a late session rally.
The NASDAQ and the S&P 500 both fell as well. The key culprit: a 4.5 percent drop in global oil prices.
The International Energy Agency warns US oil production continues to defy expectations. US oil stockpiles are also near 80-year highs, just too
much supply on this market right now. Those two factors combined may cause a supply glut that further decreases prices.
Today's drop on the markets closes out a week of huge volatility for US stocks. Every day but one this week has brought a triple-digit swing
for the Dow. But it wasn't just oil -- moving the markets. A host of factors has weighed on stocks this week, chief among them a strengthening
dollar and a weakening euro.
Investors have speculated about how that could effect the timing of rate hikes from the US Federal Reserve. According, really, to experts and
adding to the confusion, mixed economic signals, with strong jobs and weak retail sales data. Also, companies warn the strong US dollar could
continue to hurt exports and their bottom line.
Joining me now, Ken Rogoff is an economist and a professor at Harvard, also the former chief economist for the IMF. Thank you for being with me.
We brought you on the program to talk about Russia, we're going to get to that in a moment, but looking at what the market has done, despite this
late session rally, the steep decline on the Dow. Of all the things at play here -- oil, mixed economic data -- what do you blame for it?
KEN ROGOFF, ECONOMICS PROFESSOR, HARVARD UNIVERSITY: Well, there's a lot of uncertainty going on. Oil you mentioned, China slowing down, people
are starting to think maybe the Fed just might hike in June. So, there's certainly a lot of nervousness on what is basically a strong economy in the
US, but a much weaker economy globally.
HARLOW: When you look at oil prices right now, hearing what the EIA has said, we're at about $45 a barrel for crude prices, about near the low
where we were in January. Do you have any prediction of how much farther crude can fall?
ROGOFF: I think eventually this will turn around. Some of this is that projects in the US kept pumping out oil even though investments --
HARLOW: Right.
ROGOFF: Once you punch a hole in the ground, the oil's coming out. But that's going to slow down. I think oil prices are likely to go up
certainly over the medium term from here. But a big question: how much --
HARLOW: Right.
ROGOFF: -- they're going to go up --
HARLOW: Right, right, right.
ROGOFF: -- I don't think anyone knows.
HARLOW: So, we have the US Federal Reserve, central bankers meeting next week. What do you think comes of that?
ROGOFF: Well, I think there are going to be a lot of eyes on what they're going to say about the rate hike, because it's coming. They can't
keep saying forever, forever, it's not going to happen. I think it -- to me, it's most likely they do it towards the end of the year, September.
But there are quite a few, especially the regional Fed governors, who have -- some of whom have a vote, who want to do it sooner. They're
worried about the strong economy, about inflation.
HARLOW: Yes.
ROGOFF: Hard to tell where the balance will be.
HARLOW: All right, we're going to talk about Russia in just a moment, stick around, and let's also talk about that, because we've talked about
oil prices and how that's affecting the Russian economy and the global economy, but also a lot of other things at play here in Russia.
The central bank has cut its key interest rate down to 14 percent. This is a sign that the economic crisis may be -- and I highlight may be --
easing. The bank had raised rates to slow the ruble's fall, but that made borrowing more expensive, damaging the broader economy in Russia.
With the ruble somewhat stabilized, the central bank there can afford to bring rates back down just slightly, but the central bank warns the
balance of risks is still important and points to a cooling economy. Russia not expected to return to growth until 2017.
Sanctions and those falling oil prices have caused investors to pull their money, a lot of investors pulling out of Russian banks, pulling out
of the broader economy there. Those outflows expected to top $100 billion this year, that is an extraordinary number. Also, consumers face prices
that are rising at nearly 17 percent, when you look at inflation.
Ken Rogoff is back with me. So, Ken, given those numbers and Russia, I guess overall, how significant do you think that this interest cut from
Russia is today?
ROGOFF: I think it's not. I think --
HARLOW: Yes.
ROGOFF: -- they're in trouble, and they have a very difficult choice, as you said. Inflation's soaring, 17 percent. Output projections by the
central bank are to be 4 to 5 percent minus this year. And frankly, it could be a lot worse.
And they have a banking crisis looming. Oil prices stay low, they're in trouble, and they kind of have to pick their poison between inflation
and a recession. The recession's getting worse, they're allowing more inflation.
HARLOW: You still believe there is a high risk of basically a bank crisis, a run on the banks in Russia.
ROGOFF: Oh --
HARLOW: How great is that risk?
ROGOFF: Well, I don't know so much a run on the banks as a lot of defaults --
HARLOW: OK.
ROGOFF: -- putting the banks in trouble. You're seeing the run on the banks.
HARLOW: Yes, sure.
ROGOFF: People are trying to get their money out as much as they can. They have reserves, but sometimes these bleed faster. They've been
bleeding certainly at the rate of $10 billion a month. Not clear how much they really have, because they've committed some of it to bailing out the
corporates and the banks as things go along. If oil prices don't rise, I think they're going to be in trouble sooner rather than later.
HARLOW: So, I do want to talk about oil prices in greater focus. You say if oil prices don't rise, they're going to be in trouble sooner than
later. Nothing is pointing to oil prices rising. So, can Russia --
(CROSSTALK)
ROGOFF: They need to rise a lot.
HARLOW: Right.
ROGOFF: Yes.
HARLOW: And can Russia sort of chug along at this pace, at least, if oil stays around $40, $45 a barrel? Or if we see a significant drop to,
say, $30, what does that mean for Russia's economy?
ROGOFF: Oh, goodness. If they see a significant drop to $30, things will move really fast. At even $45, I don't think they can last that long.
They're sort of thinking they have a year and a half to two years if prices rise back to $70.
HARLOW: Right.
ROGOFF: And if they stay at $45, it'll be half that.
HARLOW: Ken Rogoff, good to have you on the program. Thank you, sir. Have a wonderful weekend. We appreciate it.
ROGOFF: Thank you.
HARLOW: The Kremlin is dismissing rumors that President Vladimir Putin is ill. It released -- take a look -- these photos, which appear to
show Mr. Putin meeting the head of the Russian Supreme Court on Friday. But it isn't convincing his critics. Matthew Chance has more for us from
Moscow.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): It's the first TV appearance of Vladimir Putin since he dropped out of
sight more than a week ago, triggering rumors about his fate. The Russian president is shown mainly in profile meeting the head of the Supreme Court.
He perhaps seems a little piqued as he delivers his verdict on legal reforms.
(PUTIN SPEAKING IN RUSSIAN)
CHANCE: The behavior of the Kremlin has fueled the rumor mill. Key presidential meetings have been canceled over recent days. This event was
broadcast on International Woman's Day on March the 8th, allaying some concerns. But it then turned out it was recorded earlier, further arousing
suspicions.
Social media is swirling with speculation of a serious illness, that Putin has cancer or suffered a stroke. But that's been categorically
denied by the Kremlin. "President Putin is simply working from his country house," it says, "and is in perfect health."
CHANCE (on camera): But these are uneasy times in Moscow. The economy is in free fall. The war in Ukraine has strained international
relations. And the murder of the opposition leader, Boris Nemtsov here last month has plunged the Russian elite into turmoil. An absent president
in these conditions is sparking dark conspiracy theories.
CHANCE (voice-over): One former Putin advisor has posted a blog suggesting the president has been overthrown in a Kremlin coup. There is
no evidence for that, but with the Russian leader out of the public gaze even for a few days, rumors have been quick to take hold.
Matthew Chance, CNN, Moscow.
(END VIDEOTAPE)
HARLOW: Well, stocks across Europe closed mostly higher on Friday. The euro fell more than 1 percent against the US dollar. Investors hope
the weakened euro will boost exports and profit in the eurozone. A steep drop in oil prices hurt energy stocks, as you can imagine. Also pushed the
FTSE into the red on the final trading day of the week.
Ireland's prime minister says that it will pay dividends for Greece to work with, not against, its creditors in Europe. After navigating Ireland
back from the brink of economic disaster, he knows quite a bit about these things. My interview with the prime minister, Enda Kenny, after the break.
(COMMERCIAL BREAK)
HARLOW: European Commission president Jean-Claude Juncker met with Greek prime minister Alexis Tsipras today in Brussels. Juncker says he is
not satisfied with the slow progress of talks on the Greek bailout. This comes one day after the German finance minister warned that Greece could be
forced to give up the euro.
But Juncker is calling for solidarity in the EU to work towards keeping Greece in the eurozone.
(BEGIN VIDEO CLIP)
JEAN-CLAUDE JUNCKER, PRESIDENT, EUROPEAN COMMISSION: I'm totally excluding a failure. I don't want a failure. I would like the Europeans
to grow together. This is not a time for division, this is the time for coming together.
(END VIDEO CLIP)
HARLOW: On Greece, the prime minister of Ireland says when you engage with institutions in Europe, the sacrifices are great, but it pays
dividends in the long run. It is a subject that he knows a lot about. Ireland when through its own bailout back in 2010, and now it has the best
rate of growth in the entire eurozone, when you look at the 2014 annual numbers.
I spoke with Prime Minister Enda Kenny earlier and asked him if in spite of the stunning growth in 2014 he was concerned by the considerably
weaker growth in Ireland in the final quarter of last year.
(BEGIN VIDEOTAPE)
ENDA KENNY, PRIME MINISTER OF IRELAND: I think you have to look at where we've come from in the last four years. The government I lead was
elected four years ago. We were blacked out of all the international markets.
Interest rates were 15 percent, unemployment was over 15 percent. Hemorrhaged thousands of jobs. Emigration was rampant, and we'd lost our
sense of integrity and credibility internationally.
So, in the intervening period, we've had some very difficult times. We negotiated a 64 billion program because of the economic collapse. But
we set out with a very clear plan and a strategy. Not to tax work, to make arrangements where we could for employment to happen. And after four very
difficult years of sacrifices, people see the beginnings of that.
So, while the figures are encouraging, obviously the challenge for the government is to secure that recovery now.
HARLOW: At the same time that the strong, strong growth numbers have come in, still concerns about the labor market, right? You've got over 10
percent unemployment. What are you doing to fight that?
KENNY: Well, it's fallen from 15.2 to 10 percent, and we expect to breach that, to reach the nines now in the next number of months. We have
our deficit gone by 2018, 40,000 new jobs this year.
What we're doing, really, is restructuring the tax system not to tax employment. To see that work actually pays so that it'll make it easier
for companies to set up business, access to credit. We've enhanced the opportunity for that to happen.
We set up a new structural investment bank with assistance from KFW, the German AAA state bank, and our European Investment Bank, together with
our own resources. So, things are improving. But our challenge, as I say, is to make that felt --
HARLOW: Right.
KENNY: -- in people's daily lives.
HARLOW: Sure.
KENNY: A lot of people put up with a lot of sacrifice in Ireland for the last period, so we've got to make them feel that now.
HARLOW: Sure. Ireland has been very clear to say, although we got a significant bailout, we are not Greece. So, I wonder, sir, if you believe,
if needed, Greece should get a third bailout?
KENNY: Well, what Greece -- what the prime minister said when he came to the European Council was that Greece wanted to remain part of the
eurozone, that Greece wanted to remain with the euro, that Greece did not want to default, and that Greece would honor its commitments.
What Greece looked for was time and space to present a credible and sustainable set of programs for the future, and the European Council were
very willing and are very willing to help Greece with that.
So the ball, if you like, is now in Greece's court. It has got to come up with its targets and its objectives that are sustainable and that
are achievable, and Europe wants and will help in that regard.
HARLOW: What would a Greek exit mean for the European Union, for the eurozone?
KENNY: Well, clearly it would create difficulties for the European Union and for the eurogroup. But the prime minister was very clear that
Greece does not want that to happen, that Greece wants time and space to honor its commitments, and it's now got that opportunity, and I hope that
it can be worked out.
HARLOW: Do you think it will happen, sir?
(CROSSTALK)
KENNY: Here's the challenges --
HARLOW: Do you think that it is a chance that we see a Greek exit?
KENNY: Well, when Ireland was in the middle of a Troika program, people said, "You will have to default, you'll need a second bailout,
you're never going to manage this." But where you engage constructively with the institutions of Europe, it actually pays dividends.
And when the sacrifices are greater, nobody denies the scale of the humanitarian issues in Greece. Ireland in its own way has been an example
of constructive engagement coming through a very difficult period. But we're now actually able to buy out the IMF loans that were borrowed at
higher risk, which will save our taxpayer about a billion and a half over the period of those loans.
So I hope that for Greece's sake that the parliament and the politicians can now answer the commitment, measure up to the time and space
that's been given to them, and time is short. But to come forward with programs and plans that are sustainable and that are achievable, and Europe
wants to help in that regard.
(END VIDEOTAPE)
HARLOW: Thanks to Prime Minister Kenny for that.
Well, Brazil is bracing for a fresh wave of protests this weekend over scandals and the administration of President Dilma Rousseff. Pro-
government demonstrators gathered today to oppose calls for impeachment. Today's march comes ahead of massive anti-government protests that are
planned for Sunday. President Rousseff admits Brazil is facing problems and is calling for unity.
(BEGIN VIDEO CLIP)
DILMA ROUSSEFF, PRESIDENT OF BRAZIL (through translator): We are fighting in order to prevent unemployment and a shrinking economy from
becoming structural or permanent. When we fight, we are doing what everyone does at home when they face some sort of difficulty.
(END VIDEO CLIP)
HARLOW: It was only a few years ago -- it really feels like yesterday -- that the Brazilian economy was a true global success story. Our Shasta
Darlington looks at how Brazil fell so far so fast.
(BEGIN VIDEOTAPE)
SHASTA DARLINGTON, CNN INTERNATIONAL CORRESPONDENT (voice-over): It wasn't that long ago a booming Brazil surpassed the UK as the world's
sixth-largest economy. Foreign investors flocked to the South American giant, its large offshore oil reserves and global sporting events.
Last October, President Dilma Rousseff won reelection in a tight runoff race. So why have thousands of people now vowed to take to the
streets in protest while the president's approval rating sinks below 25 percent? Here's the president's take.
ROUSSEFF (through translator): Our country is going through some very difficult problems, but we are a country with a solid base.
DARLINGTON: For critics, the answer is different: economic recession and political corruption. Brazil is bracing for a protracted recession and
high inflation that many blame on mismanagement during Rousseff's first presidential term
. At the same time, the state-run oil company, Petrobras, once the darling of investors, is hammered by a massive corruption scandal. The
highest court is investigating dozens of politicians, most of them from the ruling coalition, as part of an alleged bribery scheme whereby construction
companies paid millions under the table for lucrative contracts with Petrobras.
Rousseff herself hasn't been implicated, but she was the chairwoman of Petrobras when much of the alleged corruption took place. Now, many
Brazilians say they'll march to demand her impeachment. Concerns are growing we could see a repeat of the massive demonstrations of 2013. On
Thursday, Rousseff addressed those concerns.
ROUSSEFF (through translator): We have to treat protest in Brazil with complete calm. Everyone has the right to protest and to criticize
whoever it may be. There's just one thing that we cannot accept: that this turns into violence against other people or anyone's property, be it
public or private.
DARLINGTON: Impeachment is unlikely, but it's in this toxic climate that Rousseff will have to introduce austerity measures aimed at shoring up
the economy and putting it back on the path to those boom times.
(END VIDEOTAPE)
HARLOW: Shasta Darlington joins me now. It is incredible just to think how this has happened so quickly. We used to talk about Brazil, it
seems like yesterday, as look how well Brazil is doing. The pro-government protest today, what did we see, and how effective do you think it was
versus what we'll see this weekend?
DARLINGTON: Well, it was an opportunity for people to make their voices heard. Basically, when they saw all of these anti-government groups
organizing this big march for Sunday across the country, people who support the president, the government, started to organize their own counter march.
It's still going on right now in various cities across the country.
And so, what we're seeing is in some places a few hundred, in some places a thousand. In Sao Paulo, there are about 10,000 people still out
marching right now. They're labor unions, student groups, and political parties who say they may have a beef with some of the policies of the
government, but that Dilma Rousseff was democratically elected, and they don't want to see here impeached.
HARLOW: This weekend, we will see what is expected to be and will be, as you said, the biggest protest since her reelection in 200 cities. It's
one thing to protest, it's another thing to have very clear goals on what change they want those protests to affect. Do they have that?
DARLINGTON: Yes, I think that's part of the problem. They're calling these impeachment protests. That's just very unlikely. It's a very
unlikely. It's a very unlikely scenario. So, I think the big problem or the big concern at this point is that we could see violent factions -- we
call them the black block -- infiltrating this, clashing with the police.
This is what we saw back in 2013 when on a given day, the biggest day, 100,000 people were on the street. But in some ways it was easier to deal
with back then, because the real impetus back then was an increasing in bus fares. The government said OK, OK.
HARLOW: Right. Right.
DARLINGTON: We'll get rid of that bus fare. The protest died down. I don't see anybody raising their hand and saying, yes, we all agree, let's
give it to the president.
HARLOW: Is there any change or acknowledgment that the protesters -- because when you're talking about a big percentage of your population, this
matters to her, right? Whether an impeachment actually happens or not, is there any change that can be handed down by this administration that would
make people feel a little bit more comfortable, even given the path that, frankly, can't be changed?
DARLINGTON: I really don't think so, Poppy. I think this is such a divided country right now. We came out of these elections in October more
divided than we've seen Brazil in a very long time. So, these are the same people who were calling for her impeachment the day after elections.
HARLOW: Sure.
DARLINGTON: And basically, now they've got this growing Petrobras scandal to point to, but even before then, they wanted her impeached. And
at the same time, Dilma Rousseff has to impose all of these austerity measures that upset her own base.
So, no, I don't see an easy way out of this. And again, we'll have to see how big and how violent it gets. But if it does -- if the moment
starts growing, I do not see an easy way out.
HARLOW: What do you think it means? You live there, you spent time with the people, the business owners, right? Sort of the average mom and
pop shop and that part of the economy. How do think it is affecting the average Joe economically, coupled with lower oil prices.
DARLINGTON: Yes, absolutely. I think for the first time in many years, Brazilians are beginning to feel the squeeze. For more than a
decade, each year has been a little better. Even in 2008, 2009, when there was a pinch, we didn't see this kind of stagnation and recession that we're
seeing now. So, inflation is 7.5 percent. The currency is at a 12-year low.
HARLOW: Yes.
DARLINGTON: So, while Brazilians -- we've seen it in the United States -- were flying all over the world --
HARLOW: Right.
DARLINGTON: -- visiting Miami and New York. Well, they're not going to be able to afford to do that anymore. So, this is going to be felt by a
lot of people.
HARLOW: And you talked to my fellow Americans and people here who want to go to Brazil on vacation and say, oh, it's just so expensive when
you get there.
DARLINGTON: Well, for them this is good news --
HARLOW: Sure.
DARLINGTON: -- because it'll finally be a little bit cheaper. But for Brazilians --
HARLOW: Yes.
DARLINGTON: -- that's no consolation.
(LAUGHTER)
HARLOW: And for the tourists, it's not who it matters for. It matters for the people of Brazil.
DARLINGTON: Right.
HARLOW: We'll be following, of course, on this network all weekend. Those protests expected to be very big on Sunday. Shasta, thank you very
much.
DARLINGTON: Thanks, Poppy.
HARLOW: Coming up, Richard finds out how a lack of a small change on the part of us, the consumer, has actually led to a really big change in
the humble vending machine.
(COMMERCIAL BREAK)
HARLOW: Welcome back to the program. Doctors studying cardiovascular health at Stanford University say they have got more than 11,000 people
signed up for their latest study. Normally, it would take a year to find a sample that large, but it took just a few days using Apple's Research Kit.
This is an app that allows iPhone users to collect data and remotely participate in these research studies. And as developers have learned how
to get more out of the information from the devices in their pocket, they are able to offer consumers all kinds of new services. As Richard reports
from the Mobile World Congress, this type of innovation is already replacing our wallet.
(BEGIN VIDEOTAPE)
RICHARD QUEST, CNN INTERNATIONAL: Money. For centuries, cash was king. But no more. If there's one place in Mobile World Congress where
this doesn't count, it's the Mobile Payments section. Instead of the filthy stuff in your pocket, here, it's all about digital ways to pay.
Time for a snack. Of course, my phone is my vehicle to my stomach.
Let's go for a Coca-Cola. And I'm going to buy -- it's going to take it off this, because I'm logged in now. So, I'm logged in, it's processing
the payment -- ah. And here's the man who makes it run.
FRANCK COHEN, PRESIDENT, SAP EMEA: Hello.
QUEST: Good to see you, sir. This is the future.
COHEN: It is.
QUEST: Tell me why and how.
COHEN: Well, I think that the first thing is, it's a funny way to get your snacks. You can also personalize whatever you want to buy, and you
use your phone, you don't need to use any cash or any other payment system.
QUEST: What you've done here is you put a game in front of the experience. Why bother with the game? I just want to buy a drink. Why --
what does the game give me?
COHEN: I think the game gives you the idea that the loyalty programs that every retailer is having also offer you to have a fun experience when
you visit the shop.
QUEST: At the moment, we have a multiplicity of payment mechanisms. As our solutions manufacturer, how difficult is it for you having different
systems?
COHEN: So, our idea, of course, is to be agnostic. We need to be able to cope with any payment systems. And that's what we are doing.
We're working with Google, with Apple, with any other companies.
But of course, the fact is that we will benefit in having more standardized payment system that could be benefit to all industry.
(END VIDEOTAPE)
HARLOW: Well coming up, after years of political turmoil, the Egyptian president is making one thing very clear: his country is open for
business. As the wooing gets underway for new investment, we will join some of the world's most high-profile CEOs at the conference on the Red
Sea. That is next.
(COMMERCIAL BREAK)
HARLOW: Hello, I'm Poppy Harlow. Coming up on the next half hour of "Quest Means Business," Egypt's prime minister tells us why the country is
primed and ready for more foreign investment. Also it is not all about Benjamins.
I'm going to meet a group trying to get a woman - finally a woman - on the 20 dollar bill. Before that though, these are your top news headlines
that we are following this hour.
Final opinion polls in Israel ahead of this weekend's parliamentary election show that current Prime Minister Benjamin Netanyahu is behind his
main rival. His Likud party is polling four seats behind the Zionist Union ticket. Mr. Netanyahu has been in power for six years. He could be knocked
out of that top spot by Isaac Herzog.
A newly-released video appears to show three British school girls as they prepare to cross the Turkish border into Syria. The video was
obtained by Reuters. It appears to show the three girls at the Turkish border at the town of Gaziantep on February the 19th. It is believed that
these girls then traveled to Syria to join ISIS.
More reinforcements are arriving in Tikrit as Iraqi forces battle to recapture the entire city from ISIS. To the south, Iraqi troops have
managed to fight off a blistering assault on Ramadi, but we are now learning that ISIS blew up an army headquarters nearby, killing more than
40 soldiers.
There are fears of an epic disaster in the South Pacific. Vanuatu, home to 250,000 people has taken a direct hit from Cyclone Pam. It is one
of the strongest storms to ever hit that region. Delivery of outside aid is expected to be a logistical nightmare because of the country's remote
location.
In the U.S. city of Ferguson, Missouri, local police say they have not yet identified who was behind the shooting of two police officers earlier
this week, but they do have leads. Speaking Thursday on a late night talk show, U.S. President Barack Obama called for unity, saying police and
protestors need to work together.
(BEGIN VIDEOCLIP)
BARACK OBAMA, UNITED STATES PRESIDENT: There was no excuse for criminal acts and whoever fired those shots shouldn't detract from the
issue - they're criminals, they need to be arrested. And then what we need to do is to make sure that like-minded, good-spirited people on both sides
-- law enforcement who have a terrifically tough job and people who understandably don't to be stopped and harassed just because of their race
that we're able to work together to try to come up with some good answers.
(END VIDEOCLIP)
HARLOW: Well the Kremlin is denying rumors that Russian President Vladimir Putin is unwell. It released these photographs showing Mr. Putin
meeting Friday with the head of the Supreme Court there. It is been several days now since Mr. Putin's last public appearance. CNN cannot
independently confirm when this latest meeting that you see in the photos when that actually took place.
Egyptian President Abdel Fattah el-Sisi is welcoming some of the world's most high-profile and high-powered CEOs to his country. At an
economic conference on the Red Sea, he's hoping to convince them to bring their business back to Egypt.
U.S. Secretary of State John Kerry is there. America is one of Egypt's top trading partners. After meeting with President el-Sisi,
Secretary Kerry said a healthy Egyptian economy is vital to stability in the region.
(BEGIN VIDEOCLIP)
JOHN KERRY, U.S. SECRETARY OF STATE: There is absolutely no question that the emergence of a strong, prosperous democratic Egypt is critical to
the development of a strong and prosperous region.
(END VIDEOCLIP)
<19:16:02> HARLOW: As Egypt tries to ramp up its foreign direct investment, our emerging markets editor John Defterios spoke to several key
players at that conference.
(BEGIN VIDEOCLIP)
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: This could be called the conference of defiance. Despite a spate of recent bombings over the last
couple of weeks, the president of Egypt, Abdel Fattah el-Sisi was able to convene more than a thousand players to this Red Sea Resort including
leaders of the Gulf States, U.S. Secretary of State John Kerry and global CEOS -- this all in a climate of intense security. I asked the prime
minister of Egypt and the CEO of BP if this was the correct window to make this big push for investment.
IBRAHAM MAHLAB, EGYPTIAN PRIME MINISTER: There is a lot of resources and a lot of opportunities and under an umbrella of transparency. A very
collective (ph) glue (ph) to encourage investments. This is why we are all of us there to launch our vision for investments.
ROBERT DUDLEY, CEO, BP: We've been working in Egypt for 50 years, we know the country, we've had vast discoveries of resources offshore. Egypt
needs gas. We've got - the president has driven the process really to move through a lot of agreements in a short period of time to give us the
confidence to do it. And we should be producing new fresh large gas resources by 2017.
DEFTERIOS: For its part, BP finalized a $12 billion deal to supply about a quarter of Egypt's gas needs over the next few years. It's a
target of $35 billion in foreign direct investment by the close of business Sundays. Sound ambitious, but Egypt was once a hot investment destination
-- raising nearly $50 billion since 2005 but that dropped sharply between 2011 and 2013, and it was the Arab Gulf States who stepped in with $23
billion to fill the void.
I asked the minister of state of the UAE why they decided to step in so aggressively when it came to Egypt.
SULTAN AL JABER, MINISTER OF STATE, UAE: We had to step in and help Egypt and we did this simply because we can and because we should. Egypt
is a must secure place for the region. The health of Egypt will allow us all to be very healthy. The spin-over impact of a positive, healthy Egypt
will be very evident and very much seen across the region.
DEFTERIOS: On Saturday, CEOs from GE, Siemens and the regional property developers who are going to take the stage and more transactions
are expected. John Defterios, CNN Sharm El Sheikh, Egypt.
(END VIDEOCLIP)
HARLOW: Well Egypt wants the world to know that it is certainly open for business four years after the revolution that ousted long-term
President Hosni Mubarak. But security concerns of course including terror attacks against foreign business threaten to slow investment. Our Ian Lee
reports.
(BEGIN VIDEOCLIP)
IAN LEE, FREELANCE CORRESPONDENT: Some of the latest violence in Egypt - insurgents attacking a bank. First firing shots, later lobbying
fire bombs, underscoring Egypt's last four difficult years. It started with a revolution - that popular coup and now terrorist attacks.
Small but at times deadly bombs are now almost a daily occurrence. The economy tanked., unemployment and poverty skyrocketed. But as the
economy slowly emerges, the government is portraying Egypt as open for business.
AMR BADR, MD, ABERCROMBIE & KENT EGYPT, MIDDLE EAST: The government announced the new unified investment law - that's step number one. I think
they're also looking at revising the labor law -- that's step number two. The taxation law - that's step number three. The currency stability is
four, the roadmap is five. So these are I think also part of what an investor is looking for.
LEE: Exactly what businesses want to hear.
MOATAZ EL-ALFY, CHAIRMAN, AMERICANA EGYPT & EGYPT KUWAIT HOLDING CO.: I am optimistic because all the signs and all the connections and the
communication with the government gives us very positive signals and the government is very keen to help the private sector to grow.
LEE: But that private sector recently came under attack literally. Insurgents specifically target Gulf and American businesses, posting
threats online to anyone working with the current government. KFC and telecom companies Vodafone and Ippy Solas (ph) already targeted, though
mainly during off hours.
EL-ALFY: Our stores are run by Egyptians, our manufacturing facilities are owned by Egyptians and if our stores are hit, some Egyptians would be
out of a job.
LEE: Another threat to Egypt - ISIS-aligned militants. Hundreds of security personnel have been killed. Once the sole target of attacks, now
more civilians are caught in their crosshairs.
BRIGADIER GENERAL HATEM FATHY, EGYPTIAN INTERIOR MINISTRY: Well from my point of view, the largest threat that there are people who are trying
to challenge the police, to defy the authority, to prove their point. Maybe we take some time, but at the end, we get people behind the
incidents.
<20:05:02> LEE: The terror threat isn't deterring some companies. The Americana Group and Egypt Kuwait Holdings are expanding.
EL-ALFY: They're going to stop one day, but we're not scared. And you will discover that in summer shift (ph), you'll find a lot of investors
coming from different places.
LEE: Egypt says it's open for business but will investors at this weekend's economic conference agree? Ian Lee, CNN Haram.
(END VIDEOCLIP)
HARLOW: Well a new book reveals Apple CEO Tim Cook offered part of his own liver for a transplant to a very ill Steve Jobs. According to
Cook, Job's response was one of the very few times that he actually shouted at Cook. Much more on that story coming up after the break.
(COMMERCIAL BREAK)
HARLOW: The new biography of Steve Jobs sheds new light on a relationship between Jobs and his successor at Apple, Tim Cook. This book
reveals that Cook offer to donate a piece of his liver to Jobs who was then dying of cancer.
CNN business correspondent Samuel Burke joins me now with more about this story. This is fascinating. It's actually quite touching.
SAMUEL BURKE, CNN BUSINESS CORRESPONDENT: It really is and certainly beyond the call I think of what a typical -
HARLOW: Anyone.
BURKE: -- employer would expect. We all know that Steve Jobs announced that he was sick in 2004 with pancreatic cancer. By 2009, he
could no longer leave the house to go to the office, so Tim Cook started visiting him at home.
And according to some excerpts in a new book, he was so upset that one day he left the house and wanted to see if he had the same blood type - a
rare blood type - that Steve Jobs his boss had. He found out after medical analysis, blood analysis that they did have a similar matching type.
And he went to Steve Jobs' home and offered to give him a part of his liver. Now Steve Jobs wasn't going to have any of it, and in these
excerpts published by Fast Company, this is what Tim Cook said. He says, quote, "He cut me off at the legs" - Steve Jobs - "almost before the words
were out of my mouth."
"No, he said, I'll never let you do that - I'll never let you do that." And he said that this is one of only a handful of times in the more
than dozen years that they worked together that Steve Jobs yelled at Tim Cook. And really incredible.
HARLOW: You know Tim Cook is not one to give a lot of interviews or hardly any. This sort of Apple as a company - how they operate - obviously
he cooperated for this book. It's nice to see a little bit more into what kind of person he is - not just what kind of leader he is and someone who
can get the numbers where investors want them to be.
I do wonder, Samuel, though why another book after Walter Isaacson recent book on Steve Jobs which many looked at to be sort of the definitive
story.
<20:22:18> BURKE: There was so much that we learned about Steve Jobs from that book. I was also scratching my head at first, but it turns out
that a lot of Steve Jobs' inner circle weren't happy with how he was portrayed in that book. A lot of people felt that Steve Jobs came off
looking arrogant, selfish, not kind to others around him.
And so it looks like a lot of his team are doing - have done interviews for this new book to try and change that type of perception
about him.
So I think this anecdote about Tim Cook, it says less about Tim Cook and more about Steve Jobs. Yes, Tim Cook was willing to offer, but the
fact that Steve Jobs would have none of it - wouldn't even accept an organ from one of his employees.
HARLOW: Do we - I know we only have excerpts of the book, right? It's not out yet. But do we know any more about the relationship between
these two men and why Tim Cook was tapped for this position?
BURKE: It looks like we get to know more about the type of conversations that they had. It seems to be a more intimate portrayal -
almost brotherly from the small parts that I have read.
And they say that at times they were talking to each other and also the relationship with Jony Ive who's the design mastermind behind all this
- that when these men would have individual conversations with Steve Jobs, they could go on for hours and that other employees would kind of roll
their eyes and say, `Oh there they go.' So it looks like really these three men were always at the top of Apple together with Steve Jobs.
HARLOW: Wow. I look forward to reading it. Samuel Burke, thank you very much, appreciate it. Have a great weekend.
Well, talking about Apple and now Microsoft CEO - former - co-founder Paul Allen is also making quite a splash this week for different reasons.
He gave a live stream tour of a long lost Japanese World War II ship - the battleship Musashi. This was discovered earlier this month underneath the
water of course near the Philippines. Ivan Watson has more on this incredible piece of sunken history.
(BEGIN VIDEOCLIP)
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: A piece of World War II history frozen in time beneath the sea.
Male: So here just coming into view is the Chrysanthemum on the bow.
WATSON: The wreck of the Japanese battleship Musashi revealed for the first time in a remarkable webcast.
Male: We're here in the ROV control room.
WATSON: It featured live footage from a remote-operated submersible, filming at a depth of more than 1,000 meters beneath the sea.
Male: We're going to give you a tour of the wreck of the Japanese battleship Musashi.
WATSON: The Japanese launched the Musashi in 1940. It was one of the largest warships of its class. On October 24, 1944, American warplanes
bombed and torpedoed the Musashi at least ten times.
Male: She slowly leaned over to port and eventually she basically slipped down and sunk.
WATSON: More than 1,000 crew members died and the ship disappeared for more than 70 years until this. An announcement on Twitter on March 2nd
by Paul Allen, a billionaire philanthropist and one of the founders of Microsoft.
After spending more than eight years searching for the Musashi, the team aboard Allen's yacht "The Octopus," found the wreck deep at the bottom
of the Sibuyan Sea. Their roving camera revealing amazing images of the Musashi's five-meter propeller --
Male: So here's the starboard anchor -
WATSON: -- as well as unexploded artillery shells and other wreckage.
Male: That means this is a warhead show.
WATSON: What was once a dreadnought, now home to coral and other deep see creatures. The billionaire behind the expedition wasn't onboard "The
Octopus" when his team discovered the wreck, so Allen's crew did all the talking.
Male: It's important that we basically remind the whole world of what happened here in 1944. It was a dramatic day, it was - all these brave men
went through lots of hardships and 1,023 people were lost. And that's something that both Paul Allen and I think that we - should never be
forgotten.
WATSON: After 70 years, the whole world now gets to see the Musashi thanks to Allen and his crew aboard "The Octopus."
Male: This is about the level of the number one main gun - the Musashi.
WATSON: Ivan Watson, CNN Seoul.
(END VIDEOCLIP)
HARLOW: Well for 87 years Andrew Jackson has been the face of the 20- dollar bill. One organization with tens of thousands of supporters says there are plenty of women who are perhaps more deserving of that honor.
The director of Women on 20 is next on "Quest Means Business."
(COMMERCIAL BREAK)
21:08:03
<21:20:01>HARLOW: The U.S. greenback could be getting a new look, that is if an organization called Women on 20s gets its way. The group is
petitioning U.S. President Barack Obama and the U.S. Congress to put a woman on the 20-dollar bill. This spot that has been held by the seventh
president of the United States Andrew Jackson since 1928 may be - may be - no longer. Women on 20 says one of 15 women should replace him.
So who could it be? List of 15 women, let's take a look at a few of them. This icon - civil rights icon - Rosa Parks, often called the First
Lady of Civil Rights. Also could it be Eleanor Roosevelt, the wife of U.S. President Franklin Roosevelt who championed human rights and was
influential in the early days of the United Nations.
It could also be this woman - Harriett Tubman - an icon who fought to end slavery. The executive director of Women on 20s, Susan Ades Stone,
joins me now live. Thank you for being here. A former CNNer back in the day.
SUSAN ADES STONE, EXECUTIVE DIRECTOR, WOMEN ON 20s: That's right.
HARLOW: I love this idea - I'm completely biased. (LAUGHTER).
STONE: Everybody loves it, I have to tell you.
HARLOW: Does everybody love it?
STONE: Yes.
HARLOW: No push back?
STONE: Well, very little that we're hearing about. Whenever we were mentioning this idea before we launched the vote, we always were met with
great enthusiasm. People love that it was a positive movement that they could be a part of and -
HARLOW: Let me ask you why replace Andrew Jackson?
STONE: Well, Andrew Jackson is on one of the denominations that's most commonly used and, you know, it's a place of honor and his record has
become somewhat besmirched by some of his legislation that he passed during his presidency. The - to be specific, the Indian Removal Act of 1830 that
drove thousands of Native Americans off their reservations into the West and they died, many in the thousands of starvation and exposure.
HARLOW: I think it's interesting you've said there's no greater gender gap than our money. So I wonder where this idea came from
originally.
STONE: Well, the idea came from a friend of mine named Barbara Ortiz Howard. And she, like many of us, hadn't paid that much attention who was
on our money. But it occurred to her all of a sudden that there were no women and she thought that should be changed.
She thought that there were so many women who were instrumental -
HARLOW: Sure.
STONE: -- in our history that she wanted to do something about that.
HARLOW: There are some 60,000 people who've voted so far among this list -
STONE: Yes.
HARLOW: -- of 15 different women who it could be. What is the deciding factor? Who decides who wins if this gets through?
STONE: Well there are two rounds - one is this round we're in now. The round one has 15 candidates, people can choose three. Then there'll
be a runoff with the three top go-getters and the person that comes out of that on top will be the one we take to the White House.
HARLOW: So I have to think - does the U.S. Treasury ultimately have to approve this or it is Congress or the President and Congress?
STONE: Congress does not have to get involved as long as it's just a redesign of an existing denomination.
HARLOW: You're excited about that because Congress can't agree on much --
STONE: Yes.
HARLOW: -- these days.
STONE: That's right, and that's part of the strategy. The Treasury secretary doesn't even need the President's stamp on this.
HARLOW: So it's up to the Treasury secretary.
STONE: It's up to the Treasury secretary but we think that if you're taking a president off of the money, it's probably something the President
wants to decide.
HARLOW: Some have criticized this - not the mission, the goal, but some of them said, `Look, there's no Latina candidates.'
STONE: Yes, well you know first of all you have to have been deceased for two years and so you know we really - we wanted the feel to be quite
diverse, but the Latina candidates were - are still alive - a lot of them who've done great things. And, you know, they're a newer kind of force in
our political system and so it was - they just didn't come through -
<21:43:03> HARLOW: If it had happened maybe in the future - more?
STONE: Oh well we hope that this is just the first of many. You know, if our money were being redesigned today it would look very
different.
HARLOW: True.
STONE: We're a very different country now.
HARLOW: Very true. I look forward to watching it all take place. People can go online and vote and weigh in and have their voices heard.
STONE: Absolutely.
HARLOW: Thank you so much, Susan.
STONE: All right, thanks for having me.
HARLOW: We appreciate it. We'll be back with more "Quest Means Business" in just a moment.
(COMMERCIAL BREAK)
HARLOW: The Formula One season begins this weekend and for the team - for one team - it is a case of too many drivers and not enough cash. These
are the two drivers you see behind me that Sauber Formula One team wants to use this year - Marcus Ericsson and Felipe Nasr.
Well, one problem - they'd already promised another driver, Giedo van der Garde, that he could race this year for them. Of these three, it's
Ericsson and Nasr who bring in the big bucks from the big sponsors which, frankly, Sauber badly needs.
But now they have three drivers on the books and only two cars -- two cars for them to drive. Van der Garde argued in court that he deserves to
race and he won. He turned up for this morning's practice session in some spare overalls, but he was not allowed to compete and now the principal
could be found guilty of contempt of court if he's not allowed to take part in this weekend's Grand Prix and the team could - the assets - could even
be seized. We will be watching and see what happens at the drama there at the Grand Prix.
That is "Quest Means Business. I'm Poppy Harlow in New York. Thanks so much for joining me. Have a wonderful weekend, we'll see you right here
next week.
END
