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Quest Means Business
Burundi President Returns; At Least 72 Killed in Philippines Factory Fire; Eight Victim of Philadelphia Train Crash Found in Wreckage; Amtrak CEO Calls Crash Preventable; Greek Video Sparks German Outcry; European Markets Up; Dow Up More Than 1 Percent; Avon Trading Halted After Mysterious Bid; Tomorrow Transformed: Data-Driven Farming
Aired May 14, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:59:55] (NEW YORK STOCK EXCHANGE CLOSING BELL)
RICHARD QUEST, HOST: All right, they were late pushing the bell. Doesn't really matter, the market is still coming to a close with the Dow
Jones Industrials up 1 percent, 185 points. Let's see what we get with the gavel today.
(GAVEL POUNDS)
QUEST: Oh, dear. Marriott Vacations giving us a wimpy gavel on Thursday, the 14th of May.
Tonight, a serious start with the story of trapped within the inferno. Scores of workers in the Philippines are killed in a dreadful factory fire.
Also tonight, a preventable tragedy. The Amtrak CEO says technology could have stopped and prevented this crash.
And Nazis on the Athens Metro. Greece sparks a war of words with a controversial video for commuters.
I'm Richard Quest. We have an hour together, and I mean business.
Good evening. Before we get to any of that, we must bring you some breaking news here at CNN. The president of Burundi has returned to his
country, according to a message, a telephone text message that's been posted to his Twitter feed. The president has dismissed an army general's
announcement of a coup in the country.
You'll be aware, there's been sporadic gunfire heard in Burundi's capital, and there have been conflicting reports that the military was
attempting a coup. The streets are mainly deserted, and there are fears from residents who are telling CNN it's not clear who's in charge.
The president at the time was in Tanzania holding meetings, but now, according to what we've heard, he has returned. And obviously as we get
more details of the situation in Burundi, we will let you have it.
We move to our other top story tonight, and a truly dreadful tale to bring you. Seventy-two people have died in the Philippines after a fire
engulfed a footwear factory. The officials are reporting the fire may have been caused by sparks that were set off by welding work that was taking
place at the factory gate.
And the welding work was close to where chemicals that are used in the footwear were being stored. Investigators say many of the bodies were on
the second floor of the building, and that suggests workers were trapped and couldn't get out. A fire marshal has reported it's not yet clear why
they weren't able to get out.
(BEGIN VIDEO CLIP)
MEL LAGAN, FIRE MARSHAL (through translator): We should look at the reason why they were not able to escape. There were sufficient exit
points. It's very spacious. The stairs are wide. Then why did they fail to escape? That's what we are looking for.
(END VIDEO CLIP)
QUEST: The speed from which the fire then grew, and the ferocity which it endured left many of those who perished absolutely unrecognizable.
Paula Newton reports.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Investigators are still combing through the burnt-out building, looking for
clues in this deadly blaze. Fire swept through this factory Wednesday, sending huge clouds of black smoke billowing into the sky.
It was midday in the Manila suburbs, some 200 to 300 workers inside making shoes and slippers for owner Kentex Manufacturing. Fire crews say
it appears sparks from a welding tool may have started the blaze. Highly combustible chemicals used to make flip-flops helped the flames spread in a
matter of seconds.
UNIDENTIFIED MALE (through translator): While we were welding, there was a spark and the fire spread. We tried throwing water and using the
fire extinguisher, but it didn't work.
NEWTON: Authorities believe many workers suffocated, trapped on the building's second floor.
ELIZABETH INDOY, FACTORY WORKER (through translator): There was an explosion and a big fire, so we immediately rushed to the fire exit, but
some of our coworkers upstairs didn't know about the fire down below, so they couldn't get down. They were trapped.
NEWTON: Distraught relatives waited overnight for word of their loved ones, but hopes dimmed as fire crews carried out dozens of body bags. Many
victims are burned beyond recognition, and officials are asking families for DNA samples to help identify the dead.
DIONISIO CANDIDO, FATHER OF MISSING WORKER (through translator): I was hoping that if I saw the body, I would be able to recognize here, but
when I saw the remains, I couldn't. Any parent wouldn't recognize their child from a burnt skeleton.
NEWTON: Compounding the problem, some factory records were lost in the fire, making it difficult for investigators to determine exactly how
many people were inside at the time. For now, dozens of factory workers are still listed as missing.
Paula Newton, CNN.
(END VIDEOTAPE)
[16:05:00] QUEST: Of course, coming on the back of the Bangladesh garment factory fire, serious questions are being asked about why these
factories are not more safety conscious, particularly bearing in mind the history of death and destruction as a result of poor safety records.
I asked the general secretary of the International Trade Union Confederation, when she looked at what she saw in the Philippines, her
reaction.
(BEGIN VIDEOTAPE)
SHARAN BURROW, GENERAL SECRETARY, INTERNATIONAL TRADE UNION CONFEDERATION: Well, this is another senseless tragedy. It could be
prevented if governments stood up to corporations, put the rules in place, had the safety requirements, and basically sanctioned people who don't look
after the interests of their workers.
We've got a global model of business that is now based on exploitation. Workers don't matter, their safety doesn't matter, and of
course, beyond safety, we know the model exploits workers with unconscionable hours and, indeed, wages on which they can't live.
So, the fire, the deaths, tragic. The fact that 65 people could still be missing, perhaps injured or even dead, that's deplorable. But
governments must stand up to the corporate greed.
QUEST: The -- as I read what happened here, it seems not only the question of how people couldn't get out or were on the second floor, or
even the list of who was in there, but also how the fire began. The proper storage of the chemicals that are believed to have been the accelerant, or
at least the cause of the fire.
BURROW: When you walk into factories like this -- and I was in the Philippines just over three weeks ago -- you see a total lack of concern
for unsafe products, like chemicals. But in this case, you also had the additional stupidity of, we understand, welding at the front door near the
chemicals.
When you put that together, this is not a way of doing business. You cannot put people's lives at risk like this. But you cannot deny the care,
the duty of care that employers have for both safe and secure work. And it's all based on profit first. That corporate greed must end and
governments must take responsibility --
(CROSSTALK)
QUEST: Well -- hang on, hang on, hang on. You've moved very quickly from making a very strong and valid point that safety is paramount, and
you've thrown into this the allegation that those involved were putting profit, you're basically saying, greed before lives.
BURROW: Absolutely. And I'm saying it bluntly. We've got a model of business now in almost every country that puts profit before the lives and
the job security and the just wages of our people.
Governments have been cowed by the major corporations, in this case, in the Philippines. They're looking for a business voluntary model around
workers' rights and safety.
(END VIDEOTAPE)
QUEST: And the other big story tonight, the eighth victim of a deadly train crash in the US city of Philadelphia has now been pulled from the
wreckage. The train was traveling way above the speed limit when it derailed on Tuesday.
Sunlen Serfaty is at the hospital in Philadelphia, where some of the victims have been taken. She's with me to talk about it more. What is the
-- what's the seriousness of the injuries of those who are still in hospital, do you believe?
SUNLEN SERFATY, CNN US NATIONAL CORRESPONDENT: Well, Richard, the medical director here at Temple University Hospital, which is where the
critical injured are, he says that it's mostly chest wounds. There are some punctured lungs, a lot of fractured ribs.
Now, we have some good news out of this hospital. A few patients have been downgraded just in the last hour. The did have eight people in
critical condition. Now they have six, and they only have eleven patients total here.
That's a significant improvement from earlier in the week. On Tuesday night, the night that this train accident happened, they took in 54
patients at this hospital alone, one of six area hospitals that took in the 200 patients from passengers of that train. Richard?
QUEST: Thank you very much, Sunlen Serfaty at the hospital in Philadelphia.
On the question of what happened and how it, perhaps, could have been avoided, the chief executive of Amtrak says better technology could have
prevented this crash. A system that's called Positive Train Control automatically slows a train even if the driver programs it to go faster.
This technology was not installed on that stretch of track where the crash occurred.
[16:09:56] Whether it was meant to be and when it was going to be installed will be one of the investigative issues. Also, how much funding
has Amtrak received and how much has been cut back? CNN's Rene Marsh asked Joe Boardman how he reacted when he heard how fast the train was traveling.
(BEGIN VIDEOTAPE)
JOE BOARDMAN, CEO, AMTRAK: We knew that that was too fast. Certainly, right away we knew that. And that's what the NTSB told us that
the train was going. So, it was a -- it was a problem.
RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT: The question that's come up is this issue of Positive Train Control.
BOARDMAN: Yes.
MARSH: We know that Amtrak has this implemented on several miles of track, but it just so happen, it's not on this section of track. And so
the question has been raised, what if it was? And what do you say to people who say if it was installed, it could have prevented this fatal
accident?
BOARDMAN: I would say that had it been installed, it would have prevented this accident, because that's what I've been saying for a long
period of time, not specifically for this curve, but for the fact that when I was a federal railroad administrator, the law came into effect that put
December 31st as the deadline to get Positive Train Control installed.
I'm going to meet that deadline, because I came here in late 2008, and we're delivering that. We will have Positive Train Control on the
Northeast Corridor section by December 31st.
MARSH: But I would push you a little bit, some would say Congress says you have to have it by December 2015, so you have no choice. So I
guess the question is, why wasn't it done -- why isn't it done now? Was it an issue of cost? Does it just come down to the bottom line?
BOARDMAN: No, it's a time issue, and also a cost issue. One of the problems we were having was the particular spectrum of radio that we really
needed, we had to go buy, and then FCC is requiring us to look at whether there'll be any interference with it. This is a particular section that
that will occur on.
But we had already started implementing Positive Train Control. We were the leaders in the Western Hemisphere by having it on 156 miles
between New Haven and Boston. And then, a couple of sections got started down here.
But what we did was, we said we needed to get this done, we needed to get it done in a way that didn't interrupt the railroad as we were doing
it, because you still had to run the railroad.
MARSH: Now, in light of what happened, has it changed your timeline for how soon you will implement Positive Train Control?
BOARDMAN: We're ready to go in many ways as soon as we get the interference on the radio system done. So, we want to move along here
quickly and be done with this by the end of the year.
MARSH: As a result of this crash?
BOARDMAN: No, just as a result of the fact that that was our plan to get this done. I'd like to go faster, of course. But this has happened at
this point in time. So you can't go backwards, you have to go forwards.
(END VIDEOTAPE)
QUEST: The chief executive of Amtrak talking to Rene Marsh.
In a moment, the video, it's shown in Greek subway stations, and when you see the video, you'll understand it's sparking German anger. The call
for war reparations strains already tense relations. This is QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: There's a video on display in the Greek subway stations, and when you see it, you'll understand, it's raising objections in Germany.
The video details atrocities committed during the Nazi occupation of Greece during the Second World War.
[16:15:02] Now, a version in Greek is seen by about a million users of the Athens transit system every day. The video is scheduled to run in
subway commuter rail stations throughout this month, and of course, it's going -- it's come as relations between Berlin and Athens are already
strained over the financial crisis.
(BEGIN VIDEO CLIP)
(OMINOUS MUSIC)
TEXT: We save the memory. We do not forget.
40,000 executed.
300,000 dead from starvation.
63,000 Greek Jews victims of the Holocaust.
94 martyr cities and villages.
1,170 cities and villages destroyed.
(END VIDEO CLIP)
QUEST: The video ends with a call for Germany to pay war reparations. "We claim what Germany owes us, war reparations, repayment of the
occupation loan, compensation to the victims, return of archaeological treasures."
Well, a study by Greece estimates reparations to be worth more than $300 billion. You'll be aware, of course, that in the past, when Greece
raised this recently, the Germans basically said this had all been settled by a treaty in the 1960s, and anyway, it was a load of all nonsense.
Tadhg Enright joins us now from London to talk about the video and the reaction to it. Who's putting the video out? What's behind it? And
obviously, the reaction is rather negative.
TADHG ENRIGHT, CNN INTERNATIONAL CORRESPONDENT: Well, it's been put out, Richard, by several arms of the Greek government. The Ministry of
Defense, the Tourism Ministry are credited with it. So, I think it's fair to call it a propaganda video. It's also being subsidized by the people
who run the Athens subway, who aren't charging for the advertising space it's taking up.
Now, the Greek government is insisting that this is not an anti-German video, this is an anti-Nazi video, and that their calls for repayment of
these war reparations have nothing to do with the current stalemate, the loggerhead situation we're at with the Greek bailout negotiations.
QUEST: Right.
ENRIGHT: This is purely to do with a long-running dispute over reparations, they will say. And this video, they say, is purely to educate
young Greeks about their history.
QUEST: Right, but no one's buying that, in the sense that it's interesting that it's arisen -- Look, this has been around for a few weeks.
When one minister originally said that Germany owed more reparations, Germany knocked that out of the window by saying this was all dealt with, I
think it was in 1961 or 1962 agreement.
ENRIGHT: Yes, absolutely. And rather undiplomatic language used by some German government ministers, too, talking about this call for
reparations being boneheaded, being stupid. And it is a fairly astronomical figure that the Greeks have put on what they feel they're
owed, $300 billion.
Again, they say it's got nothing to do with the debt negotiations that are going on, but it is quite curious that one of the things they're
seeking repayment on is what they call an "occupation loan." It was a loan provided by the Greek government to the Nazis under duress while they were
occupying Greece. That loan was never repaid.
QUEST: Right.
ENRIGHT: Certainly has echoes of what's going on with --
QUEST: All right.
ENRIGHT: -- the Greek negotiations over the bailout loans right now.
QUEST: All right. This is hardly going to instill the entente cordiale and the esprit de corps between Greece and Germany. Particularly,
Tadhg, at a time when these negotiations are so delicately balanced. So, what's Germany's latest reaction been?
ENRIGHT: Well, I'm not sure entente cordiale you're talking about, because of course there is no love lost right now between Berlin and
Athens. There hasn't been, though, a direct response by the German government to this video.
The war of words surrounding the video is really between the Greek government and "Der Spiegel," that's the German current affairs magazine,
which has been covering the story in Germany.
QUEST: All right.
ENRIGHT: And that war of words centers on, really, the version of the video that they're using. "Der Spiegel" is playing a video which actually
is not the one that's playing on the Athens subway. It's a similar theme, but it's got moving pictures. It's completely different video altogether,
and that's what they're rowing about.
Clearly, this is a sideshow, a distraction from the real show that's in town. The latest line from the Greek negotiating team, the finance
minister, Yanis Varoufakis, is they want their next payments to the European Central Bank to be delayed, but I think they know that's going to
-- that appeal is going to fall on deaf ears.
QUEST: Tadhg Enright, joining us from London. Thank you, sir. Keep watching this one for us, please.
The European stock markets closed higher. They were up on the news that the ECB will continue the stimulus for the eurozone. Perhaps no great
surprise on that, they've been saying it's going to go through probably until September of next year.
Gains for the Xetra DAX -- look at those, strong gains in Germany and Paris. London not as strong after losses were seen in the mining sector.
[16:20:01] And this is what happened -- look at how -- a week of unexpected declines in US stocks all turn around. The market came out of
the gate strongly, and as you see, we're just about at the high point of the session, a gain of nearly 200 points, a gain of 1 percent, 18,252. The
S&P closed up 22 points for a record.
But there were some very peculiar goings-on at Avon, where shares popped by as much as 20 percent. Have a look and you'll see. This is the
-- this is the 24 hour mark. Look at it, it goes from here, bobs along nicely, bobbing along on the crest of a wave, 6.7.
And then it rockets up to 7.6 -- I mean, in percentage terms, not in dollar terms, not that much. But percentage terms, huge. And then it
drops all the way back. Still showing a premium.
This is all about a mysterious bid from a company calling itself PTG Capital. Now, of course, there's a TPG Capital, a very famous company,
TPG. Trading on Avon was halted. The company says they'd never got an offer. We need to find out what was behind all of this. Paul La Monica is
--
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Thank you, sir.
QUEST: Rum business.
LA MONICA: You need to do the bell --
(QUEST RINGS BELL)
LA MONICA: -- for ding dong, Avon calling.
QUEST: I think -- yes. Don't touch the bell.
LA MONICA: I'm not.
QUEST: What happened?
LA MONICA: It is really bizarre. This stock, as you pointed out, surged once we saw this SEC filing from PTG saying that they were making an
offer for $18.75 a share, triple where Avon was trading yesterday. The problem is, it doesn't look like PTG actually exists.
QUEST: OK. So, let's go to this question. Does PTG exist?
LA MONICA: It does not appear that way. I called the number in London for the general counsel. No answer. There's another number for a
lawyer. No one at all is aware that there is any firm called PTG. One of the parts of the SEC filing actually referred to it as TPG a couple of
times.
QUEST: Which of course is a --
LA MONICA: Which is a legitimate powerhouse private equity firm. This looks like a hoax. The SEC didn't have any comment, but this is
really astonishing.
QUEST: So, who filed it?
LA MONICA: Someone filed it under the --
QUEST: How?
LA MONICA: We -- that is -- that's the big mystery. The SEC wouldn't give me any explanation for how something like this can happen.
They just said -- they basically referred me to their website which shows that they don't take responsibility for the contents of filings, that
things can get filed, and it's really the parties that file it that have to be the ones responsible for accuracy, which is really --
(CROSSTALK)
QUEST: And -- and what's Avon saying --
LA MONICA: -- shocking.
QUEST: -- about all of this? Because --
LA MONICA: Avon --
QUEST: -- I thought they had no bid.
LA MONICA: Yes. Avon said there's no bid, they can't even verify whether or not PTG exists. Either -- the really sad thing, it's been three
years since Coty, the big cosmetics firm, did a takeover bid for Avon that Avon rejected, which was even higher than this $18.75 bid that doesn't
exist.
QUEST: We'll get to the bottom of this at some point. Why did the market suddenly decide to roar up 1 percent today, 190-odd points?
LA MONICA: Yes. I think the big reason is the dollar is still weakening. The dollar is now about 7 or 8 percent off of the highs from
earlier in the year, and that's good news for all the multinationals, your IBMs, PNGs, Johnson & Johnsons of the world.
Remember, it wasn't that long ago they were all complaining about the strong dollar hurting earnings. They might have a little less pressure on
their bottom line going forward if this trend continues.
QUEST: Yes, I can see the argument, but I still think a 1 percent -- it's --
LA MONICA: It doesn't make that much sense.
QUEST: No.
LA MONICA: I think the other problem that I'm more concerned about, retail sales still are sluggish. Macy's, disappointing results yesterday.
Kohl's had very poor results today. But the markets are ignoring that. You shouldn't ignore the American consumer, they power GDP after all.
QUEST: Two thirds of the US economy.
LA MONICA: Thank you.
QUEST: Thank you, sir.
Information technology comes to the farm. Data is becoming the farmer's most important tool.
(BANJO MUSIC)
QUEST: When you see how it works, you'll understand that we're seeing Tomorrow Transformed.
(RINGS BELL)
QUEST: QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
[16:25:31] (BANJO MUSIC)
QUEST: Expect me to a yee-haw or something appropriate since we're in the farming community. More jobs are coming, and US agriculture will add
thousands of them in the next five years, is the outlook from Purdue University.
For tomorrow's farmers, data is going to become the most valuable tool. More so than any tool they have in the woodshed. We found one using
information technology to save time, resources, and energy.
(BEGIN VIDEOTAPE)
QUEST (voice-over): From the time man first tilled the earth, farming has been associated with long days and back-breaking work.
QUEST (on camera): Today, achieving that bountiful harvest is not just about working harder. No, it's more about working smarter. And now,
technology is arming farmers with the information and the ability to do just that.
JOE HOSSLE, FARMER: Years ago, I worked all fall. Now, we're doing what I did all fall in about two days.
QUEST (voice-over): Farmers like Joe Hossle are taking full advantage of the technology available.
HOSSLE: Our yields are getting color-coded in right here on this page here.
QUEST: Today, sensor technology is used all over the farm. It provides real-time information about everything from fuel levels to the
soil fertility.
HOSSLE: We're much more aware of what we have in the fields. This information that we've received from all of our technology has basically
put money in our bank accounts.
QUEST: In the future, technology will give farmers better data by giving them a better view, from drones, like this precision hawk. Its
ability to map the terrain will provide farmers more valuable information than ever before. So, tomorrow's farmers will need to work the data even
harder than they work the fields.
(END VIDEOTAPE)
QUEST: Tomorrow Transformed on the farm.
Cisco's chief executive is retiring. That much we know. But he's going out with a sparkling set of numbers.
[16:28:01] (COMMERCIAL BREAK)
[16:30:20] QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in just a moment when Cisco's outgoing chief exec enjoys a
swansong with some stellar earnings. You'll hear John Chambers in just a moment.
There's a change at the top for the Springfield Nuclear Power Plant. Before all of this this is CNN and on this network the news always comes
first.
Burundi's president said via Twitter on Thursday that he has returned to his country. Gunfire had been heard in the capital amid conflicting
reports of an army general seizing power. But President Nkurunziza said - tweeted - "Congratulations to Burundi's army and the police for their
patriotism."
At least 72 people have died in the Philippines after a fire engulfed a footwear factory. Officials reported the fire may have been caused by
sparks set off from welding work that was taking place near the factory gate with chemicals nearby.
Investigators say may of the bodies were found on the second floor of the building and that suggest workers had been trapped. A fire marshal
reported it's not yet clear why people weren't able to get out.
(BEGIN VIDEOCLIP)
MEI LAGAN, PHILIPPINES FIRE MARSHAL, VIA INTERPRETER: We should look at the reason why they were not able to escape. There were sufficient exit
points, it's very spacious, the stairs are wide. Then why did they fail to escape? That's what we are looking for.
(END VIDEOCLIP)
QUEST: The eighth victim of Tuesday's train crash in Philadelphia has been found in the wreckage. The lawyer for the train's engineer says his
client has no recollection of what took place. Philadelphia's mayor said the engineer had declined to be interviewed after the accident.
(BEGIN VIDEOCLIP)
MICHAEL NUTTER, PHILADELPHIA MAYOR: The engineer was injured. Again I want to remind you the engineer of course was in the first train car -
the engine component. That car we believe actually tumbled over and over and over numerous times and the engineer survived. Was taken out of the
vehicle, went to a hospital, received treatment, was interviewed by the police department and I believe it was a pretty short interview in which he
apparently indicated that he did not want to be interviewed.
(END VIDEOCLIP)
QUEST: ISIS has released audio of the group's leader calling for recruits. The recording suggests that Abu Bakr Al Bawadi survived
coalition airstrikes in which he was supposed to have been seriously injured. The recording was posted online with translations into five
languages.
Tom Brady, the quarterback at the center of the "Deflate Gate" has filed an appeal against his four-game ban. The New England Patriots star
was suspended for his alleged role in using deflated match balls in a crucial game which won them a place in the Super Bowl.
Cisco's chief executive John Chambers is going out and with a bang - well worth the bell, Mr. Chambers! (RINGS BELL). The networking giant
reported a strong rise in profits and revenues, and for John Chambers he's stepping down as CEO after 20 years.
Cisco's gone from selling routers and switches to more sexy stuff like selling services. John Chambers told Paula Newton the strong report are
the result of the company's new strategy.
(BEGIN VIDEOCLIP)
JOHN CHAMBERS, CEO, CISCO: Mainly what your seeing is we've changed entirely how we sell products. Paula, I used to get excited about talking
on you all's show about routers and switches. Now we talk about country transformation, job creation.
We talk about how in U.S. enterprise which grew 21 percent we sell business outcomes. We talk about commercial market on how we sell
architectures which allow the CIOs to get the business outcomes faster.
So our business has changed a lot, I feel very good about our growth and the last quarter was very solid at a time that many players in our
industry are actually struggling.
PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: Yes and you make a good point there that the business that you do isn't boring anymore in the
sense that it can be truly transformative for countries, for companies.
In terms of the growth and the growth momentum that you see going forward - and we have to say these are - this is really your swansong, your
last few months at this position. What do you see in terms of --
CHAMBERS: Yes.
NEWTON: -- that momentum going forward?
CHAMBERS: I feel very good about it, Paula, and you've asked the right question. If you watch where we are, our global enterprise grew 7
percent, our global commercial grew 6 percent, our global public sector grew 7 percent. In all of our product areas, they were very, very strong
in growth -- routing, switching, wireless capability, security, collaboration.
[11:35:14] And so we are growing at a time that many of our peers are not. And it speaks to Cisco's differentiation in the market. We are
focused around digitization of countries and companies. We're focused on architectures.
So suddenly you see a partnership with a country like France in a way they've never ever done before at the president and prime minister level.
You see a country like Israel end-to-end Cisco and focused on GDP growth and inclusion of minorities and healthcare and education.
You see companies that all of a sudden like a GM. Look at Cisco as the architectural play against - across - the smart factory of the future.
So our role is really changing and we're in the sweet spot on this. I feel very good about our future, especially very good about our growth.
NEWTON: Now, is it though these days being that kind of a strategic resource, a strategic business for countries --is it a problem? And I ask
you - I'm going to tell you why - so - the - at "Financial Times" -
CHAMBERS: OK.
NEWTON: -- said that you said to them that tensions in China and Russia are hurting your business. But how much does that dovetail in the
fact that countries are now very concerned about corporate espionage, about other kinds of espionage and how technology companies sometimes facilitate
and that you have to look at companies like yours as strategic access.
CHAMBERS: Well, Paula, I think Cisco's track record in the area of not sharing our information with any government, not sharing our product,
not enabling any government in a unique way is unequaled in the industry. And I think both the Chinese and the Russians understand that. And so
we've earned people's trust around the world.
But what it does do is when our countries aren't getting along, it affects our business. Russia was down 41 percent, China was down 20. The
amazing part is you take three emerging countries - Brazil being the third - out of the picture and you're talking about growth of 9 percent in
emerging markets. That's very, very good at a time our peers are actually down in the majority of the emerging markets.
And it speaks to a different Cisco in terms of our growth opportunities for the future.
(END VIDEOCLIP)
QUEST: John Chambers talking to Paula Newton. Well you know the old idea if it looks too good to be true, it probably is too good to be true.
Well now airfares that look too good to be true are set to become a thing of the fantasy in the United States.
The U.S. Department of Transportation says it will no longer require airlines to honor fares that are offered accidently. Until now airlines
have generally been prohibited from increasing the fares after the passengers have bought the ticket. And of course the idea is if there is a
computer glitch, if you find that first class fare for the price of a cup of tea and a sandwich, well normally you've been able to get it.
Now no more. Here's what we're talking about. Look at this - in - take the case of United Airlines. United Denmark site offered a first
class from London to New York which would normally cost $5,000, they were offering it for just $70.
The result of it all was because of a third-party contractor made a currency conversion mistake -- that's why the number was wrong - it was
voided. In other words, those who tried to take advantage of it didn't get the benefit.
Then you've got the case of Delta in 2013. The tickets were from New York to Los Angeles and it was a $400 ticket which suddenly went on sale
for $47. What happened there? That was cleared for takeoff. Delta honored the fares because it felt it was their mistake and people should be
entitled to. Of course there's a big difference between $400 and $47 and $5,000 and $70, but you get the idea.
All of these bring - brought - me back to remember a classic of its kind. It takes us to 1992. In 1992 Hoover in the United Kingdom was
offering free a pair of roundtrip tickets to the United States for any vacuum cleaner bought above $150. So they were effectively offering you a
$600 ticket if you bought $150 worth of vacuum cleaners.
In Britain vacuum cleaners were flying out of the store. Everybody was buying them. Why? Not because they needed a cleaner, but because they
wanted to get the free tickets.
This has become a legend. There were lawsuits, it sullied the company's image, executives were sacked, customer lawsuits. It cost $50
million in costs, and when all was said and done, Hoover ended up being sold.
Just shows you - get your sums wrong and it can cost you dear.
Diego Maradona says FIFA is infested with rats. Strong language and you'll hear the exclusive interview next.
(COMMERCIAL BREAK)
[16:42:15] QUEST: To update you on a story that we were telling you about earlier in the week - a Spanish court has called foul on plans to
bring the football season to a halt. As perhaps expected, players at the Spanish clubs have threatened to walk out over a new law regulating how
money from TV rights is shared out.
Now Spain's High Court has put its foot down and declared the strike illegal. There are two weeks left in the La Liga season and there had been
fears that the whole strike was going to scupper it.
Diego Maradona says FIFA is being run like the Mafia and its president Sepp Blatter, in his words, "Is a rat who should step down." The legendary
striker says new leadership is needed at football's governing body. CNN's Becky Anderson sat down with an exclusive Maradona interview.
(BEGIN VIDEOCLIP)
DIEGO MARADONA, RETIRED ARGENTINE FOOTBALLER, VIA INTERPRETER: Blatter should have gone long time ago. He's damaging football. He
doesn't understand. First of all, he doesn't understand the game and you need to understand that.
Second, you need to understand the players - what they need and want. And there is something even more important that he doesn't get - that is
the people, the people who watch the game. We are talking about the most beautiful and fascinate sport in the world. And it's been managed by
someone who is as cold-hearted as a freezer.
BECKY ANDERSON, HOST OF "CONNECT THE WORLD WITH BECKY ANDERSON": You must have met him a number of times. What's he like?
MARADONA,VIA INTERPRETER: He invite me a couple of times to get into the FIFA family. But I told him I already have a family. It was a mafia
masquerading as FIFA. But the thing is because rats can get anywhere in the world, he is the president of FIFA. He knew how to get that position.
ANDERSON: Diego, then why not support the bid of Luis Figo for example? He was a former footballer like yourself.
MARADONA,VIA INTERPRETER: Well, it is because I'm running against Figo.
(LAUGHTER)
MARADONA,VIA INTERPRETER: That is why I cannot support him.
ANDERSON: Why?
(LAUGHTER)
MARADONA,VIA INTERPRETER: Because I want, along with Prince Ali to take the helm of the FIFA organization. I say this very seriously. I want
transparency, I want to understand what the people want, I want people to know what's going on. I want to end corruption in FIFA.
[11:45:03] I want to improve football everywhere in the world. That is why I want to get to FIFA. I'm not challenging Blatter - Blatter means
nothing to me. For me, Blatter should be an insurance salesman - he'd be good at that.
But managing football - no. Figo has a real chance and I like what he's proposing. He was a footballer and he understand the same way I do.
But the thing is, I am better than Figo.
ANDERSON: Do you think you stand a realistic chance of unseating Sepp Blatter?
MARADONA,VIA INTERPRETER: It is difficult. There is a lot of corruption inside FIFA. But the hope is that Blatter's friends can see
that in all these years - since 1998 - he hasn't done anything good for football. The kids in Africa for example. I was talking to Samuel Eto'o
and he told me that they are playing on the same old pitch where he used to play when he was seven years old.
So after all the workups, what's happened to all the money that was collected? There is no transparency. That is where we need to direct our
efforts. We need to target the kids - the young players. We need to work for football to be seen all around the world.
(END VIDEOCLIP)
QUEST: Diego Maradona talking to Becky Anderson. Now, a case of "hey-diddly-ho" - "neighbor-eeno." The voice of Ned Flanders and a host of
other "Simpsons" characters says he's leaving the show and in doing so, there's quite a lot of money at the table. (RINGS BELL).
(COMMERCIAL BREAK)
(BEGIN VIDEOCLIP)
ANIMATED CHARACTER KENT BROCKMAN, "THE SIMPSONS" SHOW: Tonight on Smartline, the power plant strike - Arglebargle or Fufferella
(END VIDEOCLIP)
QUEST: Well thanks to Kent Brockman in Springfield and big chances are coming to Springfield - the town that's been home to "The Simpsons"
since its debut in 1989. As it heads into its 27th season, Harry Shearer will no longer or potentially be part of the voiceover cast. He's behind
characters like Mr. Burns and his sycophantic psychic Smithers as we can see from this interview on "Inside the Actors Studio," with James Lipton.
(BEGIN VIDEOCLIP)
JAMES LIPTON, HOST OF "INSIDE THE ACTORS STUDIO" What is your occupation?
HARRY SHEARER, VOICEOVER ACTOR: Mogul.
(AUDIENCE LAUGHTER)
LIPTON: Tell me if you will how you feel about your employee Homer Simpson?
SHEARER: Who?
LIPTON: The guy - you know - the guy who falls asleep at the safety desk.
SHEARER: He's one of your drones in sector 7G, sir. Oh yes!
LIPTON: I believe that you are a person who sort of believes in revenge, don't you?
SHEARER: Yeeees. Hence Holmes.
(END VIDEOCLIP)
QUEST: (LAUGHTER). Shearer is walking away from the show after negotiations over his contract broke down. But when you put it together
with "The Simpsons," you realize what he's talking about. He's reportedly refusing an offer guaranteeing him $14 million over two years doing many of
the voices that you se.
[11:50:15] Why? Because he wants the freedom to do other work, a freedom he says he's already had and had over the many years. Brian
Stelter is our senior media correspondent. He's been talking to Harry Shearer and I asked him what Mr. Shearer wants that he's not getting.
(BEGIN VIDEOCLIP)
BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: He says he's always been allowed to have outside work. For example, he's been on the Broadway
stage in the United Kingdom and elsewhere. He's been able to do lots of things on the outside, he's liked that freedom and he says that producers
were taking that freedom away.
But the producers disagree. They say he just did not like the terms of his deal. He was looking at many, many millions of dollars to be the
voice of many of the characters and he walked away from it.
QUEST: You see now that's the interesting part. You don't walk away from your main bread and butter.
STELTER: Yes.
QUEST: So what's the backstory here do you believe?
STELTER: Well I wonder if these are actually now public negotiations that are happening because we did see some overtures later in the day from
the producers of "The Simpsons" saying hey, Harry, let's talk.
You know you sometimes wonder if these things spill out into public view because one of the parties involved thinks that's going to be more
leverage for them.
QUEST: It's fascinating because the -- they're saying that, you know, it's about the deal and he says he wasn't allowed to do other stuff -
STELTER: Right.
QUEST: And they're saying he was allowed to do others. Basically -
STELTER: That's right.
QUEST: -- your understanding is -
STELTER: Yes.
QUEST: -- there's no major change on that point?
STELTER: You sometimes wonder if it doesn't always come down to money. You know, money has been fought over about "The Simpsons" for
years. It's one of the most valuable franchises in the history of television. And everybody involved has gotten pretty rich.
But obviously the spoils are divvied up in various different ways. Harry Shearer has talked in the past about thinking that the voice actors
should get more of the share. And after 26 seasons, maybe those tensions have just boiled over.
But we do know all the other actors signed up for two more seasons and those are now already in development. So a deal has to be struck soon if
he's going to be a part of the show.
QUEST: Was he -- a threat -- wasn't there from the producers? 'We will thank you for everything' -
STELTER: Oh yes.
QUEST: -- it was classic - 'thank you very much, here's your hat, where's your hurry? We're going to recast the voice.'
STELTER: (LAUGHTER). That's right and they said they can -
QUEST: That's classically - you know - who blinks first.
STELTER: Totally. And by the way, this is "The Simpsons." They have their pick of all the best voiceover actors in the world. This is one of
the most important franchises to Fox and to all the other networks that benefit from "The Simpsons." So you know the producers would spare no
expense to hire other actors for the show.
I do wonder though if this is the rare talent that really is irreplaceable. You know, he's the voice behind Mr. Burns and Ned Flanders
and Seymour Skinner and a bunch of other, you know, characters within the show. Not the stars but the other characters on this sitcom. I do wonder
if he's almost irreplaceable.
(END VIDEOCLIP)
QUEST: Brian Stelter who indeed is irreplaceable. The "Mad Max" franchise has lasted even longer than "The Simpsons." It was the most
profitable movie franchise on record for two decades after a 1979 debut. As a new installment rumbles into theaters, it is a completely new cast and
they talked about the film, the glitz and the glamour in Cannes.
(BEGIN VIDEOCLIP)
Female Actor: Everything is dependent on oil.
Male Actor: Here they come in.
GEORGE MILLER, DIRECTOR: In the 30 years since the last one, cinema's changed, the world's changed, the way we view movies has changed and I
guess I've changed.
Male Actor: What a lovely day!
(SCENES FROM NEW "MAD MAX: FURY ROAD" MOVIE)
TOM HARDY, ACTOR: Because Mad Max is synonymous with Mel Gibson, it would be - it's a naive thought to say that I could bring something new or
change anything which was already a synonymous sort of mate, a much-loved character by Mel Gibson.
So I've invested already in the fact that George Miller created Mad Max and the journey started, you know, 40 years ago with Mel and that I've
been invited to further develop the character with George.
(SCENE FROM NEW "MAD MAX: FURY ROAD" MOVIE)
HARDY AS MAD MAX: How do you know this place even exists?
Female: I was born there.
MILLER: The interesting thing about the Mad Max world this kind of forward to the past - you actually go back into a neo-medieval dark age
where the rules are much more simple and the world is much more elemental.
Like the American Western, these are allegorical stories which you can tell over and over again and they're pretty timeless because the same
patterns of human behavior tend to repeat themselves throughout history wherever you go.
[11:55:14] HARDY: Cannes is such a wonderful film festival and prestigious (inaudible) the most fantastic is that it's quite synonymous
with filmmaking (inaudible) Cannes in many ways and we do it great with some epic kinds of blockbuster action movies is actually is really anarchic
in independent film that's been (inaudible) which is quite not what you expect it to be.
CHARLIZE THERON, ACTRESS: I mean it's one of the great film festivals out there, so to be here with a film that's so outside the box of what you
would think a Cannes film is, I think we're all very proud of that. That most - the movie - is an emotional movie and it's a good story and that,
you know, the genre has almost become so secondary. I think people are really connecting with it on an emotional level.
(END VIDEOCLIP)
QUEST: "Mad Max" is coming out on Warner Brothers which is owned by Time Warner and you know how this goes - Time Warner, the parent company of
this network. (RINGS BELL). "Profitable Moment" next.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment" - and I use that term advisedly. The death of the workers in the Philippine footwear fire raises once again
the question of how many more people need to perish before finally in the developing world safety at the workplace is taken seriously.
We don't know what happened but we do know the results and that's certainly something that's going to have to be cause for concern to
everybody that's invested in capitalism.
And that's "Quest Means Business" tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, (RINGS BELL) I hope it's
profitable. I'm in North Dakota tomorrow.
END
