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Quest Means Business
Obama Moves to Take Cuba Off Terror List; IMF Says Growth in Major Economies Diverging; SpaceX Launches Cargo Spacecraft; IMF on Growth; Dow Rallies Almost 60 Points; European Stocks Slip on Rumors of Greek Default; EU to File Formal Charges Against Google; Nigeria Marks One Year Since Girls' Kidnapping; Economic Toll of Fighting Boko Haram
Aired April 14, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:03] (NEW YORK STOCK EXCHANGE CLOSING BELL)
RICHARD QUEST, HOST: The markets coming to a close in New York. The Dow Jones is up. That was a decidedly wimpy gavel as trading comes to an
end on Tuesday, the 14th of April.
President Obama wants to take Cuba off the terrorism list, the White House has confirmed.
Also tonight, it's a question of uneven growth from the International Monetary Fund's perspective.
And hacking a plane. A serious risk, or now a potential reality?
I'm Richard Quest. I mean business.
Good evening. We begin tonight with breaking news from Washington, DC, where President Obama has formally requested that the United States
Congress remove Cuba from the list of state sponsors of terror.
This is what the White House said in a statement released just a short while ago. It says, "We will continue to have differences with the Cuban
government, but our concerns over a wide range of Cuba's policies and actions fall outside the criteria that's relevant to whether to rescind
Cuba's designation as a state sponsor of terrorism.
Long-winded way of saying that having reviewed the situation, and as part of the normalizing of relations after a half century wrought with
tension, the decision to remove Cuba from the list of state sponsors paves the way for a reopening of and a regeneration of links, including the
opening of embassies in Cuba and Washington.
And of course, it will make travel and trade easier going forward. US businesses eager to move into Cuba. US banks will be able to do business.
Companies like Netflix, Airbnb, and American Express are already making moves towards that.
One of the biggest areas to benefit almost immediately will be tourism, where airlines will now be able to open up routes into Cuba and
Havana, and the tourism infrastructure is likely to rebuild. Americans are eager go vacation in Cuba which, as you've heard us talk about on this
program, is larger than the Dominican Republic, Haiti, Barbados, Puerto Rico, and several other islands all combined.
Our correspondents obviously are covering this and are with us this evening. Patrick Oppmann is in Havana, and we'll be with Patrick in just a
moment. First to our senior White House correspondent Jim Acosta in Washington. Jim, we knew this was coming.
JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Right.
QUEST: And the president almost deliberately decided not to do it after the meeting when he was down in Panama. Why the timing today?
ACOSTA: I think that's a great question, Richard. We expected that that would occur during the Summit of the Americas. After all, it would be
a key deliverable for President Obama to have announced this decision to remove Cuba from the state sponsors of terrorism just as he was meeting
with Cuban president Raul Castro in what was a remarkable historical moment of major significance.
QUEST: Right.
ACOSTA: But what the president said is that while the State Department had made its recommendation, there was an inter-agency review,
and that, quite frankly, said he had not enough time to go through it and to make this final recommendation. So, according to the White House, the
official line here is that this was a matter of timing.
But in terms of why they did it, they've putting this in very simple terms, Richard. They're saying that there are essentially two basic
criteria for removing Cuba from this list of state sponsors of terrorism.
One is the government of Cuba has not support for international terrorism during the preceding six-month period. And the government of
Cuba has provided assurances that it will not support acts of terrorism in the future. That sounds simple enough, but if that's the case, why has
this been going on for 30-some-odd years?
QUEST: Right.
ACOSTA: It is what you just said a few moments ago. This is a part of this diplomatic process that is really in its infancy right now. The
president announced it in December. They had this major meeting between the president and Raul Castro --
QUEST: Right.
ACOSTA: -- on Saturday. And the Cuban government, quite frankly, has been demanding this in order to open up those embassies, and I think the
White House decided, well, let's go ahead and comply with this.
QUEST: We'll be with Patrick in just a second. Last question to you, Jim. Is it a done deal that Congress will acquiesce and go along with it?
ACOSTA: I think so, and I'll tell you why. I think because they have bigger fish to fry right now, quite frankly. They're really haggling over
this Iran nuclear deal and whether or not Congress is going to be able to pass some sort of legislation and have some sort of final say on that. And
that is weighing heavily on just about every agenda across this nation's capital, Richard.
[16:05:03] I talked to a senior administration official who said while the Congress has 45 days to pass a joint resolution to block the
president's decision on this, they really just don't think here at the White House that they're going to have the ability to muster that kind of
support.
And keep in mind, they would need an -- a veto override tally in terms of votes. They would need a veto-proof majority in order to do that, and
they just don't have the votes to do that at this point, Richard.
QUEST: Jim Acosta putting the Washington perspective to us. Thank you, Jim. Straight from Washington to Havana. Patrick Oppmann is there
for us tonight in the glorious Havana harbor behind. So, Raul Castro, he didn't get what he wanted in Panama, but he did get it now. How will the
Cubans take this decision -- obviously once it's ratified -- and run with it?
PATRICK OPPMANN, CNN INTERNATIONAL CORRESPONDENT: The headline here Richard is the major obstacle to restoring diplomatic relations for the
first time since the Cuban revolution has now been removed. This is what the Cubans wanted most. They said it was contradictory to restores
diplomatic relations with a country you considered to be a terrorist state.
And now, that excuse for not restoring diplomatic relations has been out of the way. There's still a lot of diplomacy that needs to be worked
out. But those steps are really very pro forma. We expect those kinds of things, whether it's removing the police from the intersection, allowing
more US diplomats to come to Havana.
Those nuts and blots issues, those all click into place now. It'll still take a few more weeks, perhaps, maybe longer, but it seems
increasingly likely that there will be once again a US embassy in Havana.
And why is this so important to the Cuban government? Because it really comes down to money. This has kept financing investment loans from
coming into Cuba since 1982 when Cuba was put on the state terror list.
QUEST: Right.
OPPMANN: It really has hurt the economy here. It's even kept the Cuban government from having a bank. They have to deal in cash in the
United States, carrying suitcases of cash back and forth. They're hoping this will now change. So, this is something for -- that the Cuban
government pushed very hard for, and today now got, Richard.
QUEST: Right. But one point it's worth emphasizing: the fact that this has been done does not mean that the embargo, or the blockade as it's
called in Havana, in Cuba, that that's been lifted. That still has to happen, am I right?
OPPMANN: And that requires Congress, and who knows when they'll get around to doing that. President Obama's gone just about as far as he could
go. He's called -- the first president has called -- to call for the lifting of the embargo.
But Cuban officials tell you that after the US embargo, these are probably the most punishing trade sanctions the US has in place in Cuba.
In 45 days, they will no longer exist, Richard. It's a big, big step for the Cuban government. It's going to open up this market quite a bit.
And I have to say, Cuban officials today are very, very happy this has taken place. They have been twisting arms, pushing very, very hard,
resisting US advances since December to open up embassies here, and they got what they wanted, Richard.
QUEST: Patrick Oppmann in Havana.
Now, a global economy of winners and losers. That's the IMF's verdict, saying advanced economies are gaining momentum when it comes to
growth. Emerging and developing markets are now falling behind. And those economies are more vulnerable to the falling oil price and the
uncomfortably sharp exchange rate moves.
As you can see, things are exceptionally difficult at the moment economically. Overall, the world is growing at the same pace as last year.
But when you look beneath the surface, you see stark differences.
For instance, let's start with China. Here we have growth slowing, and it's slowing at a greater pace than was expected. Projects 6.8 percent
growth in 2015. That's the IMF, 6.8. That's down from 7.4 last year.
Then you've got Russia. Now, Russia obviously has a contraction that we know about because of oil prices falling and the various trade sanctions
being imposed by the West, a contraction of 3.8 percent. And then you've got Brazil. Brazil's in recession, a 1 point cent -- percent contraction
is expected.
The report says richer economies will drive growth, and in that, the US will see growth of more than 3 percent. The euro area picking up
slowly, supported by low oil, low interest rates, and weak euro. Japan will grow 1 percent, which is expected after a contraction of last year.
Now, before we move any further, I believe we have some pictures at Cape Canaveral. If we go to Cape Canaveral, you'll see these. We are
expecting the SpaceX launch. We're going to stay with this. One minute before the launch. It is --
LAUNCH CONTROL: BC and B by F9 and Dragon R and start-up.
[16:09:59] QUEST: It's a two-stage Falcon 9 rocket that will be carrying an uncrewed cargo spacecraft called Dragon on a flight from Cape
Canaveral to the International Space Station.
The important thing here is what happens to the second stage, because it's the second stage, the bottom stage, they're going to try and land it
on a platform instead of just letting it drop into the water. The idea is to make it reusable.
LAUNCH CONTROL: At T-minus three seconds --
QUEST: Twenty-five seconds before the launch. It's a private launch. It's SpaceX. It's the sixth, I believe, SpaceX mission to the
International Space Station.
LAUNCH CONTROL: We're good at 20.
QUEST: Twenty seconds. Let's watch for the last 20 seconds --
LAUNCH CONTROL: T-minus 15.
QUEST: -- and enjoy these pictures.
LAUNCH CONTROL: T-minus 10, 9, 8, 7, 6 --
NASA ANNOUNCER: -- 5, 4, 3, 2, 1.
(ENGINES FIRE)
NASA ANNOUNCER: And liftoff. The Falcon soars from its perch toward the International Space Station carrying Dragon and new science for the
one-year crew.
(ENGINES ROARING)
NASA ANNOUNCER: Thirty seconds into flight, all systems are go for the Falcon 9.
(ENGINES ROARING)
QUEST: Now, remember the -- the goal here, besides obviously delivering the goods to the International Space Station more than --
LAUNCH CONTROL: One minute into flight.
QUEST: -- four and a half thousand pounds worth of supplies, including research equipment. And an espresso machine, by the way, is also
--
NASA ANNOUNCER: The Falcon is supersonic, one minute ten seconds after liftoff.
(ENGINES ROARING)
QUEST: An espresso maker that astronauts can use in space. But the goal here besides this important work is to -- and to bring back trash and
space science from the space station is whether or not they can land the separating part of the booster rocket.
If they can land it on a platform and thereby reuse it, Elon Musk has said if they do that, then the cost of launching into space falls
dramatically because obviously it becomes a reusable spacecraft in part.
Separation is about to take place.
LAUNCH CONTROL: (inaudible) T-plus two minutes, altitude 32 kilometers at the speed one kilometer per second. Down-range distance 13.5
kilometers.
NASA ANNOUNCER: Thirty seconds from first stage engine cutoff.
(ENGINES ROARING)
NASA ANNOUNCER: Standing by for main engine cutoff.
QUEST: We'll stay with this just for a second or two more, because frankly, you can't beat watching what's happening. Look, there it goes.
NASA ANNOUNCER: Miko.
QUEST: It broke off.
LAUNCH CONTROL: Primary separation confirmed. Good luck stage one.
QUEST: And there's the separation.
NASA ANNOUNCER: So the stage is separating.
LAUNCH CONTROL: And we have net recognition.
NASA ANNOUNCER: Standing by. The single Merlin vacuum engine igniting on the second stage.
LAUNCH CONTROL: -- altitude 85 kilometers, speed 1.9 kilometers per second, down-range distance 63 kilometers.
QUEST: Now, this, the bit that's falling back --
NASA ANNOUNCER: -- the Dragon's protective nose cone to jettison.
QUEST: Very hard to work out what's happening, but there we are. We'll take a break while we wait and see exactly what happens and whether
or not the bit falling back to Earth does land on a platform or not. QUEST MEANS BUSINESS.
[16:14:35] (COMMERCIAL BREAK)
[16:16:13] QUEST: Now, before we had that exciting launch of the Falcon rocket, I was showing you the IMF world economic outlook. I won't
repeat everything. The gist of it is, though, China is slowing down, Russia is in recession, Brazil may be recovering a bit. The United States
is showing the best growth of all, and the euro area is starting to pick up marginally.
Uneven is the message. I asked the IMF chief economist, Olivier Blanchard, what we should take away from such unevenness.
(BEGIN VIDEOTAPE)
OLIVIER BLANCHARD, CHIEF ECONOMIST, INTERNATIONAL MONETARY FUND: In the end, it adds up to exactly the same goal this year as last year.
What's uneven if you look at groups of countries is the performance of the advanced economies on one hand and the emerging market economies on the
other.
The advanced economies, which were doing rather poorly for many of them, are doing better this year. And that's offset by a decrease in the
growth of most emerging markets, with some accidents, I would say, which is Brazil, Russia.
So, that's how it balances. Now, whether it's good, it's bad, again, when you sum it together, it's more or less the same, but you have this
evolution, which is probably a good thing on that.
QUEST: The managing director, of course, was much more pessimistic in her recent speech in the question of this unevenness in growth. Do you not
share that pessimism?
BLANCHARD: I think that there are two things. The unevenness, I've given you the aggregate numbers for all the advanced economies and all the
emerging markets, but you clearly have to go down, and there are some countries which are doing well and some countries which are doing poorly.
So, there lays unevenness.
It's nearly always the case, but one has to worry. The environment, the general global environment, is one of uncertainty in various dimensions
-- the price of oil, the exchange rates -- so it complicates life. I think that's one dimension of unevenness.
I think the other thing that she has struck is the new mediocre. I would use slightly less pessimistic words in the sense that what we found
is indeed looking forward, potential growth is likely to be a bit lower than it was pre-crisis. And that's something important to keep in mind.
QUEST: But you see, the real crux of this is whether or not you change your forecast up a bit or down a bit, the central tenet of the
forecast remains slow, mediocre growth. And that's really the worry, isn't it, at this point in any recovery?
BLANCHARD: I'm a bit reluctant to use the word "mediocre." I used "moderate" this morning. I think it's more the right word. It's -- in
another interview, I've used the word "so-so," which I think captures quite well what's going on. It's OK.
But given that we still have a number of countries where activity is far below where it should be, we should be doing a bit better than that.
So, I think in this sense, we should try to do better.
QUEST: Where do you stand on the economic debate of the day on secular stagnation. Between Ben Bernanke and Larry Summers, where do you
stand on this? Is this something that is secular or structural? Something that can be dealt with by a good old dose of government spending?
BLANCHARD: So, I think there's a number of issues and a number of semantic issues in the debate of secular stagnation. And so, I think the
first issue is are we aiming to a world in which there is going to be stagnation, no growth? And I think that's not true.
[16:19:56] If you look at our forecast for potential growth, they're not great. They're a bit worse than they were before the crisis. But
again, there is going to be growth in developing economies, there's going to be growth in emerging markets at fairly high rates. Advanced economies
still can have growth at 1 to 2 percent, which is not so bad.
So, in that sense, stagnation seems to me to be the wrong word. Now, Larry in particular has used it to indicate that even maintaining demand to
achieve that level of output may require very low interest rates in the future.
I think that's still very much an open issue, which is what kind of interest rates will be needed to sustain demand to achieve potential. On
this we don't know. My own sense is we probably are going to be able to do it with positive interest rates, but there's a lot of uncertainties, and I
think here the debate will have to go on for quite a while.
(END VIDEOTAPE)
QUEST: Olivier Blanchard of the IMF, and this is the way the market's closed. The Dow Jones was up in New York just about 60-odd points, just
shy of 60 points. A gain of a third percent. Only in the morning session was it down. Otherwise, a rally, which took the market all the way through
the afternoon. In Europe --
(RINGS BELL)
QUEST: -- stocks slipped lower. There are reports that Greece is preparing to default on some of its debt obligations. Greece has denied
that. You can see the way three were down. Germany, Paris, and Athens were down. Athens was off 2.25 percent. The composite was very sharply
down. London eking out a small gain all things considered.
"The Wall Street Journal" tonight is reporting the anti-trust chief for the EU has planned to file formal charges against Google for violating
competition laws. It's known that she has been -- the commissioner responsible has been considering what to do and whether or not to continue
the existing policy or -- put formal charges forward.
But a spokesman said to us tonight no decision has been taken. The EU has been investigating Google for some five years and hope that formal
charges might raise pressure on Google to settle the case.
When we come back in a moment, one year on and still no sign of more than 200 missing Nigerian schoolgirls. We'll speak to the country's
outgoing agriculture minister about funding the fight to bring them home.
(COMMERCIAL BREAK)
QUEST: One year on, it's a rallying cry that has yet to be answered, and it is, of course, Bring Back Our Girls. In Nigeria, crowds again
demanded the return of more than 200 schoolgirls kidnapped by Boko Haram militants exactly a year ago today.
The cost of fighting Boko Haram has put strains on the countries taking on the militants. The countries of Central Africa have created an
$80 million emergency fund for that very purpose, but $80 million, how far can that go? The African Development Bank says these countries have to
keep investing in infrastructure in isolated areas where Boko Haram strikes.
Joining me now is Nigeria's outgoing agriculture minister, Akinwumi Adesina, who's live from New York. Minister, a year ago, the girls went
missing, and a year on, I see reports in the paper that maybe they won't be found. Maybe it is simply too -- in parts of Borno and places like that,
it's simply too difficult to find them. What can you tell us?
[16:25:08] AKINWUMI ADESINA, OUTGOING NIGERIAN AGRICULTURAL MINISTER: Well, I think, Richard, there's no doubt that as a country, we're all very
committed to actually finding the girls. Clearly, the president has actually been working hard and this government has been working hard on it.
The military has been working hard on it.
And I think the coordination between the -- from Cameroon to Chad and to Niger, all the forces have been working very hard. It really makes your
hear bleed that we have not been able to find them, but I'm sure that it's in all our prayers that we're actually going to be able to find them.
But it's an indication, Richard, of the growing concern with fragility on Africa's continent. It's not just Nigeria. In fact, you have 29
African countries today that are actually fragile economies, and those -- some of those that are lower income countries --
QUEST: Right, but --
ADESINA: -- and those that are even lower middle-income countries and other that are even upper middle-income countries --
QUEST: All right --
ADESINA: -- so, it's an issue of fragility, an issue of terrorism that we all have to do. That's a new world where we live in today,
unfortunately.
QUEST: Are the wheels coming off the Nigerian economic success wagon? And I -- and I'll tell you why. You have first of all Boko Haram. You
have the inability to find 200 hostages, basically. You also have continuing warfare from Boko Haram in the northeast.
But you have a -- you have this -- the fall in the price in oil, which has taken a dramatic impact on the government's finances. And now you have
the government, of course, about to change office in -- I'll give it credit -- in a democratic shift, a change in power. But what does it tell us
about the fragility of Nigeria?
ADESINA: Well, I think, Richard, what actually happens is if you look at commodity prices, it's one that is all for most African countries. A
lot of African countries depend on those commodities, and the volatilities in the commodity markets, it's one that actually goes all across.
And that is why I believe that African countries, all economies, have to continue to diversify away from primary commodities, and also to
continue to add value to those commodities and also have fiscal buffers that allow them to cope with the downturns like this that you have in the
economy.
And I think Nigeria is doing that. We have the sovereign wealth fund. And I believe that even the incoming administration will continue to work
on that. Look at the way in which elections were held in Nigeria.
QUEST: Right.
ADESINA: The way in which the president conceded, and also in the way -- in a very generous way in which he and the incoming president are going
through this transition. That says quite a lot in terms of stability of Nigeria, in terms of the fact that --
QUEST: Right.
ADESINA: -- the wheels are not --
(CROSSTALK)
QUEST: All right, but --
ADESINA: -- coming off Nigeria, but in fact, it's a great thing that Nigeria has done. And I think --
QUEST: Well --
ADESINA: -- you will see, Richard, that Nigeria has --
QUEST: If I can get a word in. Hang on.
ADESINA: Yes.
QUEST: If I can get a word in here.
(LAUGHTER)
ADESINA: All right, good.
QUEST: Just to ask you, finally, maybe I'm being unduly pessimistic, but I can't see in the current environment the cause for the optimism that
you are espousing.
ADESINA: Take a look at it -- on the food side. When we had the deep recession -- or let me say, the depression in the value of the naira, but
also in terms of the reduction in the price of crude oil, we have done tremendously in agricultural in Nigeria. As Nigerians we're very proud of
that.
And you have not seen significant increase in food prices. That tells you that the economy is actually quite robust.
Of course, we have to continue to diversify the economy, to add value, and to make sure that we are building the necessary fiscal buffers and
ensuring macro economic stability.
Look, I am a big optimist about Nigeria, and that's where I come from. And I think that we are going forward, we're going to be strong. Listen,
if you have the largest --
QUEST: All right.
ADESINA: -- largest economy in Africa, the wheels don't come off that easy. I think you'll find Nigeria is a resilient economy, as many African
countries have to be.
QUEST: You made the point, sir. Thank you very much.
ADESINA: Thank you, Richard.
QUEST: The outgoing agriculture minister joining us from New York.
Now, this is a very disturbing story. There's a new warning from the US government, it's about air travel. No, it's not about delays, and it's
certainly not about the quality of service. This latest threat goes to the very core of safety, in a moment.
[16:29:32] (COMMERCIAL BREAK)
[16:31:51] QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in a moment when we'll hear how the United States is
warning computer hackers could take control of a passenger aircraft. Is this just idle threats or a potential reality?
And picking the pockets of the most powerful people. I'll meet the man who's built a legitimate career out of - "You've got to pick a pocket
or two."
Before that, this is CNN and on this network the news always comes first.
President Barack Obama is asking for Cuba to be removed from the list of state-sponsored terrorists. The request from the White House has been
submitted to Congress and will be a major move towards establishing diplomatic relations between Washington and Havana.
President Obama met with Cuba's President Raul Castro a few days ago at the Summit of the Americas.
The U.S. President's also pledged hundreds of millions of dollars in humanitarian aid for Iraqi victims of ISIS. The announcement came as Iraqi
Prime Minister Haider al-Abadi made his first official visit to the White House.
Iraq's economy is struggling as oil prices fall and the government who's tried to stabilize territory recaptured from ISIS. Here's how the
U.S. President said that they will aim to help civilians.
(BEGIN VIDEOCLIP)
BARACK OBAMA, U.S. PRESIDENT: We are committing an additional $200 million in humanitarian aid to help stabilize communities and to help those
who've been misplaced from their homes, lost their jobs, have seen their property destroyed. I think it's very important for us to remember that
this is not just an abstract issue - that there are individual families and children who have suffered as a consequence of ISIL's activities and, you
know, we need to make sure that we're paying attention to them as well.
(END VIDEOCLIP)
QUEST: The Save the Children charity says that a ship carrying hundreds of refugees has capsized in the Mediterranean Sea. The boat sank
around 130 kilometers off the coast of Libya as the ship was trying to travel to Italy. Survivors are telling authorities that there were about
550 people onboard. So far it seems only 145 people made it.
Nigeria's marking a very sad anniversary. It's one year since Boko Haram kidnapped nearly 300 school girls. Marchers gathered in the capital
of Abuja chanting, "Bring back our girls." Two hundred nineteen of the kidnapped girls remain missing.
The former U.S. secretary state and now presidential candidate Hillary Clinton has kicked off her presidential campaign in Iowa. It's the first
official event since announcing her bid on Sunday.
(BEGIN VIDEOCLIP)
HILLARY CLINTON, FORMER U.S. SECRETARY OF STATE: A lot of people in the last few days have asked me, well, you know, why do you want to do this
and what motivates you? And I thought a lot about it and I guess the short answer is I've been fighting for children and families my entire adult
life.
(END VIDEOCLIP)
QUEST: And SpaceX has launched an unmanned rocket carrying cargo from Cape Canaveral in Florida to the International Space Station. The bottom
part detached itself from the rocket, and the idea was that SpaceX was to guide it to an upright position onto a floating path (ph) in the Atlantic.
[16:35:07] Well we've just received word that SpaceX was unable to guide the bottom stage onto the floating platform after launching.
According to Elon Musk, the rocket landed on drone ship but too hard for survival.
The British Prime Minister David Cameron has launched the Conservative's election manifesto, and in it he promises a good life for
British workers. The Labour Party says the Conservatives represent the richest in society.
CNN's London correspondent Max Foster reports.
(BEGIN VIDEOCLIP)
MAX FOSTER, CNN ANCHOR AND LONDON CORRESPONDENT: Margaret Thatcher was revered and reviled in equal measure, but one of her triumphs as it's
seen within the Conservative Party was her controversial flagship scheme - to allow people in subsidized housing to buy their homes.
(BEGIN VIDEOCLIP)
MARGARET THATCHER, FORMER PRIME MINISTER OF THE U.K.: If you've been a council tenant for at least three years, you'll have the right by law to
buy your house, and that's that.
(END VIDEOCLIP)
FOSTER: David Cameron is now extending the plan in the hope of appealing to lower-income families.
(BEGIN VIDEOCLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: So let the message ring out from this generation of Conservatives. You've worked hard, you've saved.
That home you live in, it's yours to buy, yours to own. The dream of a property-owning democracy is alive and we will help you fulfill it.
(END VIDEOCLIP)
FOSTER: Finchley and Golders Green. This was Margaret Thatcher's parliamentary seat, and here the right-to-buy scheme won her a lot of
support. But is Cameron as convincing to working class voters?
(BEGIN VIDEOCLIP)
Female: In this area it was hugely popular. I mean, I know a lot of people who bought their council houses.
Male: They can dress it up, but they're not the natural votive of working people.
Male: This is the only positive step the Conservative been taking, so that's why I think we are supporting the Conservative on that point.
FOSTER: Elsewhere, the leader of the minority Green Party Natalie Bennett was calling for a peaceful political revolution. Voters in this
election can't complain about a lack of choice. Here's her promise.
NATALIE BENNETT, GREEN PARTY LEADER: And this is really, you know, a model of an end to Thatcherism. So many decades on, we've been stuck in
that kind of ideology. And what we're doing here is setting out a whole vision of how Britain can work differently - humanely, fairly.
Male: Thank you.
FOSTER: Cameron had a privileged upbringing, deeply rooted in Conservatism. But in casting himself in the shadows of Thatcher, who was
brought up above a shop and clambered her way to the top which is what made her appealing to a wider base of voters. Max Foster, CNN London.
(END VIDEOCLIP)
QUEST: The U.S. government report out in the United States says computer systems onboard so-called next generation aircraft are vulnerable
to mid-flight hacking. Now, we're talking about aircraft like the Boeing 707 (Jim liner), the Airbus 8350 and the like, largely because, in the
words of the report, "the aircraft are effectively internet routers." They get so much of their data over internet protocols.
Let's get details from the director of civil aviation issues of the U.S. Government Accountability Office - the GAO. Gerald Dillingham joins
us now live in Washington.
Sir, this is everybody's nightmare, and what you are saying is it could come true.
GERALD DILLINGHAM, U.S. GOVERNMENT ACCOUNTABILITY OFFICE: Well, what we're saying is that the possibility exists. However, the likelihood of
something catastrophic happening is very, very small. Anything is subject to hacking, but what we're saying is that FAA needs to continue its
processes and its activities to try and totally eliminate to the extent that it can -
QUEST: Right.
DILLINGHAM: -- the possibility of hacking.
QUEST: Now are you talking about somebody - a passenger on the plane who could hack into the systems using, say, the inflight Wi-Fi - or are you
talking about somebody on the ground who manages to hack in via the airline or via air traffic control system? How would they do it?
DILLINGHAM: We're talking about all of those possibilities - that it could be on the ground, it could be a passenger, it could come from any
number of places. And that's why we recommended that FAA have an enterprise-wide threat model so that all of those possibilities are in fact
looked into.
QUEST: Your first answer in which you sort of say it's a possibility but it's highly unlikely - now, I can understand why that you might tone
down the rhetoric a bit. But, sir, an organization like yours does not issue this sort of clarion call warning if there isn't a concern.
[16:40:07] DILLINGHAM: Oh, absolutely. There is a concern and we issue it as an early warning that we want to make sure that in this case,
as FAA builds out its system, that it builds in the security that would be appropriate for an internet protocol as opposed to in previous times when
we sort of had point-to-point kind of connections for aircraft to the ground.
But now we have and are going to have multi-point connections with many, many avenues of possibilities. So this is an early warning to take
action now.
QUEST: Do you think the industry itself - I mean, they always say safety first and - but do you think the industry itself has got a grip on
this? In understanding - they understand the severity, but have they come to terms with the potential of reality?
DILLINGHAM: I would say so, but even to the extent that they haven't, FAA has. And FAA has to - has to certify and approve every aircraft, every
system and every operation that takes place within the national airspace system. And they are truly aware of it. But clearly, airlines are aware
and when they buy these new aircraft from Boeing or from Airbus, there is the concern that they are as safe as possible.
QUEST: When you wrote this report and your committee, and when you decided to publish it, you knew what you were doing here, didn't you?
DILLINGHAM: Yes, sir.
QUEST: Thank you very much for joining us and putting that into perspective. Now, he calls himself the "Man of Steal." We'll be talking
more about that after the break.
(COMMERCIAL BREAK)
QUEST: Now remember Fagin who said "You've got to pick a pocket or two" from Oliver Twist. Well, the next guest has managed to pick the
pockets of the mayor of London, Boris Johnson, the former Bank of England governor Lord Mervin King and indeed me own pocket.
He's the self-confessed honest pickpocket. He's entertainer James Friedman and he showed me how it's done.
(BEGIN VIDEOCLIP)
QUEST: I've got my wallet in my pocket because I've just bought something and I've just shoved it back in here, the phone is in my inside
pocket, I have my keys in this pocket, and I'm in the middle of just a busy day.
JAMES FREEDMAN, PICKPOCKET ARTIST: I'll tell you why that's not a good idea.
QUEST: Why?
FREEDMAN: Because with your phone in this pocket - take it out. What fraudsters will do is they'll set off a text alert in a crowd and you pull
out your phone and you'd see if it's you, and as you put away the phone, they now know where it is, so you don't want to do that.
What did you say you had in this pocket here?
QUEST: In this pocket I have my keys.
FREEDMAN: OK. And you should never carry your house keys and your car keys on the same bunch - that's a very good idea because your sat map
can direct them to the right address.
QUEST: Right.
[16:45:00] FREEDMAN: You've got a nice watch though, I have to say.
QUEST: I have, very nice.
FREEDMAN: If I get it, can I have it?
QUEST: No, (inaudible).
FREEDMAN: Well, OK. I'm going to try and take things one at a time from you.
QUEST: Right.
FREEDMAN: Would you like me to take the phone or the wallet or some - sorry, your tie's just mucked up. The phone or the wallet or something
else?
QUEST: Well, try the wallet.
FREEDMAN: OK.
QUEST: The wallet was -
FREEDMAN: You remember which pocket it is? It's gone, hasn't it?
QUEST: It has.
FREEDMAN: Yes, and your phone is still there, I think.
QUEST: Yes, it's still there.
FREEDMAN: OK, but your wallet is down here.
QUEST: Oh, very good.
FREEDMAN: Yes. Put it back into your pocket. Don't put it in the outside pocket, it's not safe.
QUEST: Well, I -
FREEDMAN: How long do you think it took me to rob you? You wouldn't know because I have your watch.
QUEST: But I, now how easy would it be for you to get my wallet out of that pocket?
FREEDMAN: The back pocket is known as the mug's pocket.
QUEST: Why?
FREEDMAN: You think something very obvious like that you can't see it.
QUEST: Right.
FREEDMAN: Do (inaudible) something at the front I might be able to steal - like your tie. I'll explain it all later.
(END VIDEOCLIP)
QUEST: James Freedman joins me now in the studio.
FREEDMAN: Good to see you.
QUEST: The stage show is titled "Man of Steal," it's in the London West End. So you managed to remove my watch, my wallet and my tie.
FREEDMAN: Yes.
QUEST: And what I ask you here is, how easy is it for us all to be pickpocketed when it is one of the oldest sort of cons in the business? Is
it still easy? Are we still prey?
FREEDMAN: It's much easier than people think, and that's the problem. Because people think `it couldn't happen to me.' But it could. And as you
found out, it did.
QUEST: But what do I do to prevent it? Because - so, I'm walking down the street. I mean, there's only so many places I can put my wallet -
FREEDMAN: Yes.
QUEST: -- my phone, -- unless I'm wearing an overcoat.
FREEDMAN: Yes (inaudible).
QUEST: What do I do?
FREEDMAN: Well, you don't put it in your outside pockets if you can help it. The best defense against a pickpocket is distance. So if you
know you're going to be in a crowded place, --
QUEST: Right.
FREEDMAN: -- then just carry what you need - that's the first thing. And don't advertise what you have. Nowadays what conmen will do is set off
a text alert so that everyone takes their phone out to see if it's them and puts it away, and now they know exactly which pocket it's in.
It's a modern variation of standing by the sign that says beware pickpockets because you go like that when you read it.
QUEST: There is also this new very dangerous form of pickpocketing which is the pickpocketing of information.
FREEDMAN: Yes.
QUEST: Not just pickpocketing the physical goods. What -- tell us about this.
FREEDMAN: Well, that's been termed electronic pickpocketing - and the contact list cards that we carry --
QUEST: Right.
FREEDMAN: -- are designed to give that information wirelessly. So with a normal mobile phone -
QUEST: Yes.
FREEDMAN: -- with some software that you shouldn't be able to get hold of, it's possible to go close to a wallet or a purse in someone's bag
or pocket and electronically steal the card number and the expiry date of card.
QUEST: Now even though that's a very early stage, isn't - it might be a bit of a - clunky.
FREEDMAN: Yes.
QUEST: That's going to improve in terms of its effectiveness and that's very worrying for the rest of us.
FREEDMAN: Well it's happening that you can protect against it. You can get an -
QUEST: How?
FREEDMAN: -- well effectively and RFID block in your wallet. But all it really means is a bit of tin foil between the card. So if you took your
wallet and you had a billfold wallet, you put a bit of foil on the outside, every card inside is protected and people can look online to see.
By the way, Richard, you upgraded and said I'm in the West End. I'm at the Menier Chocolate Factory Theatre.
QUEST: Oh.
FREEDMAN: So it's menierchocolatefactory.com.
QUEST: Then an upgrade is more than merited for anybody -
FREEDMAN: Not the West End.
QUEST: -- somebody who manages to remove my tie without me realizing it. A final question though. When we look at pickpocketing - because you
have studied this -
FREEDMAN: Yes.
QUEST: -- and you're a white pickpocketer in the sense of the black pickpocketer goes after - a good man, a good man.
FREEDMAN: I'm an honest pickpocket and I work with police and security people -
QUEST: Yes.
FREEDMAN: -- to avoid this kind of problem.
QUEST: Yes.
FREEDMAN: But one thing I would always say, the number one tip - always cover up your PIN number, because if you don't you're a target for a
pickpocket. I certainly don't want to show this bit of paper on camera, but yes or no, Richard, is that your PIN number?
QUEST: (RINGS BELL). Thank you see.
FREEDMAN: I'll keep that and put it in the shredder.
QUEST: Thank you very much.
FREEDMAN: Nice to see you.
QUEST: Now, I need to bring you some awful elements on a story that we brought you earlier. You remember I was telling you about a ship
carrying migrants that had sunk off the coast of Libya - about 130 kilometers off the coast.
Now an Italian coast guard won't confirm a report from the Save the Children that 400 migrants died as they attempted to cross the
Mediterranean. The coast guard says the operation included boats and planes and did not find any survivors or bodies or anything to suggest a
boat has capsized.
So tonight we have confusion as to what the true situation is. Those who were rescued said that there was a boat that was capsized and there
were several hundred more people, but the Italian coast guard this evening says so far, they don't have any evidence of such. This is CNN.
(COMMERCIAL BREAK)
[16:51:15] QUEST: On this program we have spoken many times about the incredible potential of 3D printing. Companies like GE are already gearing
up and deploying it to print fuel nozzles that's used in jet engines.
You'd have to be a big multinational to take advantage of this new technology. From Hanover's Industrial Trade Fair Rosie Tomkins now reports
on how 3D printing is changing the face of manufacturing.
(BEGIN VIDEOCLIP)
ROSIE TOMKINS, CORRESPONDENT AND SENIOR PRODUCER FOR CNN INTERNATIONAL: Los Angeles, California, home to the movie industry. But
this technology is not science fiction. 3D printing is changing the face of global manufacturing.
AVI REICHENTAL, PRESIDENT AND CEO, 3D SYSTEMS: Really blessed and privileged to be kind of at the epicenter of the next industrial
revolution. When you think about the whole idea of having instant manufacturing from an idea - no tooling, no lead times, no limitations from
complexity and it's definitely going firmly onto the factory floor as a real manufacturing tool.
TOMKINS: 3D printing is also transforming lengthy prototyping processes - from aerospace and automotive to consumer electronics and
fashion.
REICHENTAL: You get fully assembled parts here with all the movements. So if you look at this bearing for example, this is how it
comes out of the printer. It's fully functional.
TOMKINS: The technology is expensive and print times are still not fast enough for some. But Avi believes this is a game-changer, allowing
even the smallest of start-up companies to compete with deep-pocketed multinationals and they can do it through the cloud.
REICHENTAL: 3D printing is one of the most powerful disrupter of business models because I think that we're going to see and experience a
real Renaissance in localized manufacturing.
Just like you have computer storage in the cloud, we've created 3D printing virtual storage distributed in many countries around the globe.
TOMKINS: This cloud facility in Buckinghamshire, England eliminates the need to buy an expensive 3D printer.
NICK LEWIS (ph), GENERAL MANAGER, QUICKPARTS UK, 3D SYSTEMS: It's as simple as logging into website, uploading your designs, choosing the
process and the materials and then we manufacture it for you and send it back to you.
TOMKINS: Once programmed, these machines can operate through the night unattended, printing anything from car parts to glasses.
LEWIS (ph): The future of this technology is that it's mass customization. (AUDIO GAP) designs can be produced very quickly and easily
and brought to market with novel features which simply couldn't be incorporated into normal hardware (ph) manufacturing.
We can produce the watch strap as a single piece - no joints in the hinges, all one component. So that has the advantage of making it very
strong so there's no weak points in there. But also in terms of assembly, there isn't any.
REICHENTAL: Technologies like 3D printing are not just catapulting us into the future in terms of the possibilities and the digital craftsmanship
aspect, but it's also (ph) returning us to our roots - roots of preindustrial revolution, pre-mass production back into hyper local
distributed model in which you can make what you need with bulk, customized, made for me, fit for me locally.
TOMKINS: With the ability to print the materials from titanium and stainless to nylon plastics and even chocolate, this technology has the
potential to transform traditional process and become a serious force in manufacturing.
[16:55:09] Well from 3D printers to the essence of smart factories, we'll be finding out why machines like this will form the backbone of
tomorrow's factories.
(END VIDEOCLIP)
QUEST: "Producing the Goods" and a "Profitable Moment" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment." In the last hour, the Falcon Rocket has taken off - SpaceX's rocket has taken off and headed up towards
the International Space Station.
But this was no ordinary resupply route for the Space Station. Yes, it took science and supplies and goods - all that stuff - but here it was
also testing a new piece of technology. The third - the first - stage when it falls away, it's meant to land on a drone - a platform in the Atlantic
so that it can be used again.
Well, we heard a short while ago from Elon Musk that it had in fact landed on the drone but it landed too hard to be usable in the future.
That doesn't matter! The important point is they tried. You heard "Producing the Goods" on this program - all about 3D printing. It's all
about trying.
Because what they did up there today, even though it failed, next time get that little bit closer to a success. And that's what space is about,
it's what manufacturing is about and truth be told, it's what the world of business is really all about. Getting that ever bit closer to the product
that somebody wants or needs.
And that's "Quest Means Business" for tonight. I'm Richard Quest in London. Whatever you're up to in the hours ahead, (RINGS BELL) I hope it's
profitable.
END
